Structure of "New RWE" finalised
RWE Group reinforces market focus / Rolf Martin Schmitz appointed to Executive Board in charge of the German generation, distribution grid and supply businesses / Energy efficiency company to be founded / Dividend of €4.50 to be proposed at Annual General
Customer relations and service, along with rapid responsiveness, are crucial factors for further growth in the European energy market. To facilitate such growth and the integration of new companies, the executive management of the Group will, in future, be more closely aligned to national markets. The aim is to attract new customers locally and expand the existing business. In Germany the two regional companies, RWE Rhein Ruhr and RWE Westfalen Weser Ems, will be merged to form two public limited companies, one for supply and one for distribution. The role of the intermediate holding company, RWE Energy, will be discontinued as a result. Like all other German regional RWE companies, the two new companies will report directly to RWE AG. The activities of RWE Energy AG will be allocated in part to the new companies and in part to RWE AG.
Dr. Juergen Grossmann, CEO of RWE AG, said: "Despite anti-trust restrictions, RWE wants to grow in Germany. In the past few months we have attracted many new customers. We intend to significantly increase our market share with an expansion of the German retail business, innovative products and first-class service. Our staff are highly qualified and motivated to make this happen."
In the supply area, a new company is to be set up to promote all energy efficiency efforts and energy services within the Group. RWE sees significant potential for business growth in this area, with the additional benefit of improving the company's environmental scorecard. Stephan Kohler (56) will lead the new company, along with other managing directors. Grossmann: "We are very pleased to have secured the services of Stephan Kohler, who is arguably the top expert in Germany in this important field. He comes to us after successfully having set up and managed the German Energy Agency (dena). The new company has all the credentials to be as successful as RWE Innogy in the field of renewables under the leadership of Fritz Vahrenholt." There are also plans to pool the Group's extensive activities relating to electro-mobility within a dedicated company.
The focus of the new distribution system company is to establish itself more firmly in the region and seek further local cooperation. At the same time, RWE is preparing its grid distribution systems for the future and promoting new technologies like smart metering and smart grids. These, too, are growth fields for the RWE Group.
RWE is currently implementing the largest-ever investment programme in its history, with an annual budget of €6.5 billion. The Group's growth targets and planned integration of the Dutch utility Essent will require a realignment of roles within the Executive Board of RWE AG. For this reason, the Supervisory Board has appointed Dr. Rolf Martin Schmitz (51) to the Executive Board of RWE AG. He will take Board responsibility for the German generation, distribution and supply businesses. Grossmann: "Rolf Martin Schmitz knows the energy business inside out. He has been very successful in this field for many years, and has held several leadership roles in all three business areas of generation, distribution and supply. My Executive Board colleagues and I are very pleased to welcome Rolf Martin Schmitz. We are lowering the average age of the Executive Board and we are gaining additional strength at the helm to steer our operating business in the right direction."
Dr. Ulrich Jobs (55) will be responsible for the Group's operating business outside Germany. Operations will in future be aligned more closely with the specific market conditions in RWE's growth regions. Ulrich Jobs will therefore oversee all activities in Central and Eastern Europe, and the division "Netherlands/Belgium" - provided the acquisition of Dutch utility Essent is successful. Furthermore, the divisions "UK" (RWE npower), "Upstream Gas & Oil" (RWE Dea) and "Trading/Gas Midstream" (RWE Supply & Trading) will also report to him. In addition, Jobs will manage, via the new "RWE Technology" unit, the engineering activities for project development and implementation (especially new-build power plants). Via the new technology unit, he will also be responsible for the technical expertise needed to handle strategic assets and components for all power generating companies, both nationally and internationally. Dr. Leonhard Birnbaum (42) will continue to be responsible for the new division "Renewables" (RWE Innogy).
For fiscal 2008, the Supervisory and Executive Boards will be proposing a dividend of €4.50 per share to the Annual General Meeting on 22 April 2009.