• “The viability of the entire Group will be strengthened”

• IPO of the new subsidiary in late 2016

At its meeting today, the Supervisory Board of RWE AG unanimously approved the Executive Board’s plans to restructure the Group. The company will transfer its renewables, grid and retail operations in Germany and abroad to a new subsidiary, which it intends to list on the stock market towards the end of next year. RWE AG will focus on conventional electricity generation and energy trading. In addition, RWE AG will remain the new subsidiary’s majority shareholder over the long term and consolidate it fully. There will be no change to the asset base available to back liabilities.

“Today, we set an important course for the future of the entire RWE Group,” says Manfred Schneider, Chairman of the Supervisory Board of RWE AG. “As a result of this restructuring, we will increase our capacity to invest in the energy world of tomorrow and, in turn, secure the viability of RWE as a whole. Our Group will thereby be even better placed to fulfil its responsibility towards its shareholders, employees and society.”

Frank Bsirske, Deputy Chairman of the Supervisory Board of RWE AG, adds: “In light of the radical changes to the energy landscape, this is a necessary step and the right one. By taking this decision, we are giving the entire workforce long-term prospects. Only a healthy RWE is a secure employer. We hope that the restructuring will create new jobs in future-oriented business fields over the medium and long term.”

“I am pleased that the Supervisory Board is supporting our strategy unanimously,” says Peter Terium, Chairman of the Executive Board of RWE AG. “This decision sends the clear signal that we have found our answer to the transformation of the energy system. We will implement our plans for the Group’s new structure as quickly as possible and as carefully as necessary. As a result, we will improve the viability of all our business areas, without neglecting our social obligations.”

The restructuring will create two viable companies under RWE AG with a clear strategic focus and increased financial headroom. The IPO of the new subsidiary is scheduled for late 2016. In connection with a capital increase at the new company some 10 percent of new share capital will be placed on the market. A placing of further stakes – then owned by RWE AG – is possible.

The additional capital will enable the new subsidiary to step up its capital expenditure in renewable energy and the trends of the energy world of tomorrow. As the majority shareholder, RWE AG will also benefit from this. Furthermore, RWE will increase its financial flexibility with regard to the nuclear phase-out. The shares of the new company will be an asset that may be used to cover nuclear provisions if necessary.