Employees (end of year)1) 10 FACTS ON LIGNITE Mining area 1989 2) 2016 2017 2018 1. Lignite is and continues to be the only fossil fuel in Germany which Rhineland 3) 15,565 9,716 9,739 9,986 does not have to be imported. It is abundantly available, and it is Lusatia 3) 79,016 8,765 8,639 8,375 extracted without subsidies. Central Germany 59,815 2,414 2,367 2,379 2. With a total output of about 166 mt (2018), lignite makes a significant Helmstedt 1,693 199 146 111 contribution to a safe and secure energy and power supply. With an electric power production of about 145 TWh from secure generation Small firms 642 - - capacities that are constantly available, lignite-fired power plants are Germany 156,731 21,094 20,891 20,851 indispensable in supplying energy to industry, commerce, and private households, and they will continue to do so for many years to come. 1) including employees in own public power stations 2) Annual average – without employees in own public power stations 3. According to the recommendations of the Structural Commission appointed by the Federal Government, the extraction of lignite and Lignite reserves in bn t its conversion into electricity in Germany are to end in 2038. Until this point in time and given that there is assured and guaranteed planning Economically Approved and Geological Mining area minable developed and investment security, lignite will continue to be important for the reserves reserves opencast mines energy supply and development in the individual mining districts. Rhineland 50.9 30.9 2.6 1) 4. The termination of lignite utilization, which will be earlier than had previously been anticipated and planned by the companies, requires Lusatia 11.5 3.0 0.8 2) reasonable compensation payments as well as extensive financial aid Central Germany 10.0 2.0 0.3 in order to implement the structural change in the mining districts. Germany 72.4 35.9 3.7 5. Guaranteeing a secure and reliable standby, as was agreed between the lignite industry and the Federal Government, will result in a 2.7 GW 1) Based on a decision of the federal state North Rhine-Westphalia made in 2016 the approved reserves will be diminished by 0.4 bn t decrease in the lignite-based electricity production capacity by 2022 2) available reserves per 31.12.2017 by lignite plans of 1994 = 0,8 bn t ; additional reser- and in savings of about 14 mt of CO2 by 2020. ves by in 2015 officially approved lignite plans: Welzow-Süd open cast mine sector II = 0,2 bn t; additional reserves by current lignite mining plan procedure: Nochten open 6. German lignite accounts for less than 0.5 % of the global CO2 cast mine, subfield Mühlrose = 0,15 bn t emissions. A national abandonment will not have any sustainable impact on the anthropogenic influences on climate change. Production of lignite products (in mt) 7. Modern lignite-fired power plants are as flexible as combined cycle Changes power plants (CCPP); they provide system services to compensate Products 1989 2017 2018 2018/2017 for the fluctuating grid feeding and network supply of wind turbines in % and PV plants. Briquettes 49.39 1.68 1.59 - 5.7 8. The recultivation efforts following lignite mining are considered to Dry and pulve- be exemplary around the entire globe, compensate for mining- Shutterstock©Eugenio Marongiu rized/Fluidized- 4.41 4.87 4.87 + 0.0 related, limited land utilization, and create new cultural and natural bed coal environments. Coke 5.09 0.15 0.16 + 1.9 9. The close technical and local combination of open-pit mines and power plants provides maximum security, economic efficiency, LIGNITE Selected coal qualities and value creation. operational and planned mining areas 10. Lignite safeguards and assures around 70,000 jobs in Germany. Ash Water Sulphur The fossil fuel phaseout recommended by the Structural Commission IN GERMANY Calorific value Mining area content content content will lead to massive job reductions in mines and power plants as well kJ/kg in % in % in % as among suppliers and service providers. In addition, increasing electricity prices will threaten jobs in energy-intensive industries. Rhineland 7,800 - 10,500 2.5 - 8.0 50 - 60 0.15 - 0.5 Lusatia 7,800 - 10,000 2.5 - 15.0 49 - 58 0.2 - 1.5 Bundesverband Braunkohle Facts and Figures 2018 Central Germany 9,000 - 11,300 6.5 - 12.0 48 - 54 1.3 - 2.1 Am Schillertheater 4 10625 Berlin Deadline: March 2019 (Data preliminary for 2018) phone +49 30 315182-22 Source, if not specified: Statistik der Kohlenwirtschaft Summed deviations due to roundings [email protected] www.braunkohle.de Lignite production according to mining areas Participation ratios of the lignite companies Primary energy consumption

11.6 % 2005 2015 2018 1) RWE 100 % RHINELAND Power AG RWE AG 51.9 % 6.6 100 % 26.3 Lausitz Energie 2.1 Lausitz Energie 80 % LEAG Holding a.s. Verwaltungs GmbH Bergbau AG 1.5 Rhineland: 86.3 mt (Mehrheitsgesellschafter) 110.9 56.1 LUSATIA Energetický total *) Lusatia: 60.7 mt je 50 % a průmyslový 61.7 166.3 mt holding, a.s. (EPH) 94.5 Central Germany: 19.2 mt 100 % Bundesministerium LMBV mbH der Finanzen PPF Investments Ltd. 60.7 104.8 2) 34.2 Others 36.5 % Energetický Renewables 100 % JTSD Braunkohle- 100 % MIBRAG mbH a průmyslový 28.3 CENTRAL bergbau GmbH Natural gas holding, a.s. (EPH) 176.3 GERMANY 153.3 Nuclear energy Utilisation of lignite 2018 94.9 % ROMONTA 1) Bergwerks 151.6 Oil use ROMONTA GmbH Holding AG Hard Coal Generation of Mining areas 2) electricity and Refining Others SMR Hochbau 61.7 59.0 Lignite 44.4 heat 5.1 % GmbH & Co.KG in million tons 54.4 53.4 50.0 Helmstedter 100 % Rhineland 75.8 10.3 0.2 HELMSTEDT MIBRAG mbH Revier GmbH 496.9 452.5 442.3 total in mt ce Lusatia 56.9 3.7 0.1

Central Germany 18.0 0.6 0.6 *) indirect holdings 1) provisional/forecast Source: Arbeitsgemeinschaft Energiebilanzen Helmstedt - - - 2) including power exchange balance Germany 150.7 14.6 0.9

1) Deviations between production and utilisation caused by change in stocking and deliveries between the mining areas Capacity and generation of lignite powerstations Total gross electricity generation 2) without deliveries to other lignite companies Gross electricity Gross installed power Federal State generation Jan. 1, 2019 Share of domestic output in primary consumption 2018* 2018 5) 2005 2015 2018 1) MW TWh 33.5 32.2 1) 35.8 Others 151.6 total in mt ce North Rhine-Westphalia 11,489 72.0 63.5 Renewables Brandenburg 4,705 2) 33.9 188.6 total imports 70 % Natural gas Saxony 4,580 3) 32.3 72.7 226.4 total domestic output 30 % Hard Coal 4) 104.8 Saxony-Anhalt 1,221 7.2 Nuclear energy 134.1 62.0 Lower Saxony 407 Lignite 83.4 98 % Hesse 42 117.7 0.1 83.2 61.7 Bavaria 2 163.0 94 % 50.0 91.8 44.4 Baden-Wuerttemberg 2 76.0 Total 22,448 6) 145.5 100 % 94 % 100 % 154.1 154.5 145.5

2 % 6 % 6 % including newly built power stations (since 1995): 1) Niederaußem (1,012 MW) Oil Natural gas Hard Coal Lignite Renewables 4) Schkopau (980 MW) 623.2 648.1 646.8 total in TWh Neurath (2,200 MW) 5) estimated 2) Schwarze Pumpe (1,600 MW) 6) thereof 1,973 MW security standby *) provisional 3) Boxberg (900 MW and 675 MW) reserve Source: Arbeitsgemeinschaft Energiebilanzen Lippendorf (1,840 MW) 1) provisional / forecast Source: Arbeitsgemeinschaft Energiebilanzen, BDEW