Employees (end of year) 10 Facts on Lignite

Mining area 1989 1) 2014 2) 2015 2) 2016 2) For many years to come, lignite is the only domestic energy supplier that Rhineland 15,565 10,146 9,410 8,961 is available in large amounts without subsidies on competitive terms. Lusatia 79,016 8,245 8,316 8,278 With an output of approx. 172 mill. tonnes (2016), lignite contributes Central Germany 59,815 2,536 2,565 2,414 almost 40 % to Germany‘s primary energy generation and is thus an important domestic energy supplier. Helmstedt 1,693 479 453 199 High-quality and by worldwide standards, exemplary recultivation is Small fi rms 642 - - - compensation for land required for mining operations. Germany 156,731 21,406 20,744 19,852 About 90 % of total lignite output is used for domestic power and 1) Annual average – without employees in own public power stations district heat generation. All power plants have highly effi cient systems 2) including employees in own public power stations for fl ue gas desulphurisation, dust removal and NOx reduction. Thanks to the combination of opencast mines and power plants, lignite- Lignite reserves in bn t based plants offer a maximum of security of supply. There are no transport risks. Approved and Geological Economically Mining area developed reserves minable reserves In 2016, lignite-fi red power plants generated some 150 bn. kilowatt hours opencast mines of power. Every fourth kilowatt hour of power consumed in Germany Rhineland 51.0 31.0 2.8 1) is derived from domestic lignite.

2) Lusatia 11.6 3.1 0.9 In Germany, almost 70,000 competitive jobs are secured by the lignite Central Germany 10.0 2.0 0.4 mining and lignite-based power generation industry. The lignite mining Germany 72.7 36.2 4.8 sector provides top-quality primary professional training to round 1,300 young people. 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 Industrial safety has attained a high development level: With 2.0 2) available reserves per 31.12.2016 by lignite plans of 1994 = 0,9 bn t notifi able accidents at work per 1 mill. working hours (2016), the lignite additional reserves by in 2014/2015 offi cially approved lignite plans = 0,51 bn t and additional reserves in approval process = 0,25 bn t mining sector ranks far below the average of the total German industry (2015: 14.0).

The lignite mining industry stands for preventive climate protection. With Production of lignite products (in mt) high investment in the power plant population, i.e. new power plants Changes and modernisation, effi ciency of power generation was and still is Products 1989 2015 2016 2016/2015 continuously being stepped up while the emissions are being lowered in % simultaneously.

Briquettes 49.39 1.64 1.54 - 5.8 The fl exibility of modern lignite-fi red power plants is comparable to Dry and gas and steam plants and provides cost-effective system services to pulverized/ 4.41 4.85 4.71 - 2.7 compensate the fl uctuating electricity generation from wind and solar. LIGNITE Fluidized-bed coal Coke 5.09 0.17 0.16 - 6.5 IN GERMANY

Selected coal qualities in the main lignite mining areas

Calorifi c value Ash content Water con- Sulphur con- Bundesverband Braunkohle Mining area kj/kg in % tent in % tent in % Auenheimer Straße 27, 50129 Bergheim phone: + 49 2271 99 57 70 FACTS AND FIGURES 2016 Rhineland 7,800 - 10,500 2.5 - 8.0 50 - 60 0.15 - 0.5 [email protected] Lusatia 7,700 - 10,000 2.5 - 15.0 48 - 58 0.2 - 1.5 www.braunkohle.de Central Germany 9,000 - 11,300 6.5 - 12.0 48 - 54 1.3 - 2.1 deadline: February 2017 (Data preliminary for 2016) Source, if not specifi ed: Statistik der Kohlenwirtschaft Lignite production according to mining areas Participation ratios of the lignite companies Primary energy consumption

0.6 % Mining Member Participation 2005 2016 1) 2030 1) areas companies ratio 10.3 % RWE 100 % RWE 100 % 6.5 Rhineland Power AG Generation SE RWE AG Rhineland: 90.5 mt 26.3 1.6 Lusatia: 62.3 mt 100 % Lausitz Energie Ver- total Lausitz Energie 80 % LEAG Holding a.s 57.6 waltungs GmbH 110.2 Central Germany: 17.7 mt Bergbau AG 171.5 million t (Mehrheitsgesellschafter) Helmstedt: 1.1 mt Lusatia Energetický a - 0.4 *) průmyslový holding, each 50 % 2) a.s. (EPH) 103.1 Others 36.3 % 100 % Bundes ministerium 60.7 85.7 LMBV mbH Renewables 52.7 % der Finanzen PPF Investments 31.5 Natural gas Nuclear energy 73.6 Utilisation of lignite 2016 100 % JTSD Braunkohle- 100 % EP Energy, a.s. MIBRAG mbH Oil Central bergbau GmbH (EPE) 176.3 use 1) Germany 155.3 Hard Coal 94,9 % ROMONTA Generation of 110.0 Lignite Mining areas 2) Bergwerks electricity and Refi ning Others ROMONTA GmbH Holding AG heat 61.7 55.6 in million t ROWIND GmbH 45.4 5,1 % Rhineland 80.4 9.8 0.2 54.4 51.9 42.9

Lusatia 58.6 3.7 0.0 Helmstedter 100 % Helmstedt MIBRAG mbH 496.0 456.7 357.2 Total in m tce Central Germany 16.4 0.7 0.6 Revier GmbH 1) provisional / forecast Source: Arbeitsgemeinschaft Energiebilanzen, Helmstedt 1.6 - - *) indirect holdings 2) including power exchange balance BMWi Energieprognose 2014 Germany 156.9 14.2 0.8 Capacity and generation of lignite powerstations 1) Deviations between production and utilisation caused by change in stocking and deliveries between the mining areas Gross electricity Total gross electricity generation 2) without deliveries to other lignite companies Gross installed power Federal State generation Jan. 1, 2017 2016 5) Share of domestic output in primary consumption 2005 2016 1) 2030 1) 2016*) MW TWh 33.4 12.2 Others 36.1 1) Renewables 155.3 total in m tce North-Rhine/Westphalia 11,523 74.5 62.5 Natural gas Brandenburg 4,705 2) 34.6 188.3 72.7 Hard Coal Imports total 70 % Saxony 4,640 3) 31.8 Domestic output total 30 % 287.6 Nuclear energy 4) 103.1 Saxony-Anhalt 1,220 6.4 134.1 80.5 Lignite Lower Saxony 407 1.9 Berlin 188 111.5 61.0 98 % 163.0 Hesse 40 57.6 0.8 84.6 110.2 92 % 55.6 51.9 Bavaria 2 Baden-Wuerttemberg 2 93 % 154.1 150.0 141.0 100 % 100 % Total 22,727 150.0

2 % 8 % 7 % 622.6 648.4 612.0 Total in TWh Oil Natural gas Hard Coal Lignite Renewables including newly built power stations (since 1995): 3) Boxberg (900 MW and 675 MW) 1) Niederaußem (1,012 MW) Lippendorf (1,840 MW) 1) provisional / forecast Source: Arbeitsgemeinschaft Energiebilanzen , *) provisional Neurath (2,200 MW) 4) Schkopau (980 MW) BMWi Energieprognose 2014 Source: Arbeitsgemeinschaft Energiebilanzen e.V. 2) Schwarze Pumpe (1,600 MW) 5) estimated (Referenzprognose)