Dear Ladies and Gentlemen,

The exchange of business operations and investments agreed upon with E.ON will lead to a change in reporting. In accordance with IFRS, we will classify all of innogy’s operations that will be transferred to E.ON in the long run (primarily the grid and retail businesses) as ‘discontinued operations’ until they are sold. Please find attached the corresponding RWE’s pro forma figures for the 2017 fiscal year and the first quarter of 2018 (pre audit review).

The change in accounting treatment will become effective with the publication of the interim report on the first half of 2018 on 14 August 2018. 

From now on we report as follows: 

• We will recognise the innogy business assigned to E.ON in the income statement only in condensed form under ‘income from discontinued operations’. It will no longer be considered in the Group’s sales volume, revenue, adjusted EBITDA, adjusted EBIT, non-operating result, financial result, or taxes on income. Prior-year figures has been adjusted accordingly.

• On the consolidated balance sheet, the affected business operations will be combined under ‘assets held for sale’ and ‘liabilities held for sale’. In accordance with IFRS, we will maintain the presentation of the previous year’s balance sheet figures.

• In the cash flow statement in the consolidated financial statements, we will recognise the cash flows from discontinued operations separately. Conversely, we will take a different approach in relation to the condensed cash flow statement in the review of operations to maintain consistency: here, we will only present cash flows from continuing operations for both the reporting and prior-year periods.

Please note that we will provide an updated outlook for adjusted EBITDA for 2018 with our interim report on the first half of 2018. The outlook for recurring net income has become irrelevant and will therefore not be updated.