Corporate | 10 August 2004 08:03

PART 2: RWE reaffirms positive outlook for fiscal 2004

Corporate-news announcement processed and sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– PART 2/2 Group revenues are expected to come in somewhere under the previous year’s figure of EUR43.9 billion. This is due primarily to the sale of CONSOL in the previous year and of Heidelberger Druckmaschinen in May 2004. Excluding currency effects and deconsolidation, RWE expects organic growth of revenues somewhere in the low single-digit percentage. For inquiries: Bill McAndrews, Head of Group Press Relations Tel.: +49 (0)2 01/12-1 50 95 Cell: +49 (0)1 77/5 51 53 02 Michael Rosen, Group Press Relations Tel.: +49 (0)2 01/12 1 74 41 Cell: +49 (0)1 72/2 85 18 58 RWE Jan. Jan. +/- Jan. Group – Jun. – Jun. in % – Dec. 2004 2003 2003 External revenue EUR million 21,113 22,434 – 5.9 43,875 EBITDA EUR million 4,465 4,376 + 2.0 8,476 Operating result EUR million 3,281 2,935 + 11.8 5,551 Income EUR 2,400 1,540 2) + 55.8 2,123 2) before tax 1 million Net income 1) EUR million 1,357 621 2) + 118.5 953 2) excl. goodwill EUR 1,357 1,105 + 22.8 1,938 amortization million Earnings per share 1) EUR 2.41 1.10 2) + 119.1 1.69 2) exl. goodwill amortization EUR 2.41 1.96 + 23.0 3.45 Operating cash flow EUR million 2,257 2,712 – 16.8 5,289 Capital expenditure EUR million 1,630 6,822 – 76.1 9,762 Free cash flow 3) EUR million 809 897 – 9.8 927 06/30/04 12/31/03 +/- in % Net debt EUR million 15,698 17,838 – 12.0 Workforce FTE 4) 101,660 127,028 – 20.0 1) Excluding goodwill amortization. The values for 2004 no longer include goodwill amortization, due to the change in the International Financial Reporting Standards (IFRS). 2) Including goodwill amortization 3) Cash flows from operating activities excluding capex on property, plant and equipment as well as intangible assets. 4) Full-time equivalent (FTE), according to the percentage of full-time employment (1 FTE = 1 full-time position). Attachment to the press release Photos of the Board, from the press conference, and from the general press photo archives may be viewed and downloaded as of about midday on August 10 from the RWE Press Photo Data Bank at http://www.rweimages.com using the Access code HP04. The complete report on the first half year of FY 2004 at the RWE Group may be viewed beginning at 10.00 CET GMT on the Internet at http://www.rwe.com . The press conference will be broadcast live on the internet beginning at 10.00 CET/09.00 GMT, and the Analyst Conference beginning at 16.00 CET /15.00 GMT. The relevant link can be found on our home page at http://www.rwe.com starting at 10.00 CET/9.00 GMT. The presentation accompanying the Analyst Conference will be available as well at 10.00CET/9.00 GMT. The recording of the conferences as well as the charts that accompany them will be available on our Internet site for three months afterward. Comments on reporting procedures After launching the Group’s reorganization on October 1, we had implemented all structural changes by the beginning of fiscal 2004. RWE Thames Water’s main water activities in Continental Europe and RWE Trading’s industrial customer business were incorporated into RWE Energy as of January 1, 2004. Business conducted by the former RWE Gas is now also integrated in RWE Energy. Moreover, RWE Trading took over the trading business of our UK energy company RWE Innogy, which has been operating under the new name “RWE npower” since the beginning of August. In March 2004, the International Accounting Standards Board (IASB) published new accounting regulations. They stipulate that goodwill shall be subject to an impairment test at least once per year and shall no longer be amortized. We voluntarily adopted this regulation as of January 1, 2004, and therefore no longer amortize goodwill. We sold the majority of our stakes in HOCHTIEF construction group and Heidelberger Druckmaschinen at the end of February and the beginning of May. As of 2004, HOCHTIEF will not be accounted for at equity. We deconsolidated Heidelberger Druckmaschinen in May 2004. Pursuant to International Financial Reporting Standards (IFRS), we are stating Heidelberger Druckmaschinen’s activities separately as operations that are to be discontinued (“discontinuing operations”) in our 2004 reports. We are still accounting for our remaining stakes in HOCHTIEF and Heidelberger Druckmaschinen as marketable securities. Forward-looking statements This report contains forward-looking statements regarding the future development of the RWE Group and its companies as well as economic and political developments. These statements are assessments that we have made based on information available to us at the time this document was prepared. In the event that the underlying assumptions do not materialize or additional risks arise, actual performance can deviate from the performance expected at present. Therefore, we cannot assume responsibility for the accuracy of these statements. END OF PART 2/2 end of message, (c)DGAP 10.08.2004 ——————————————————————————– WKN: 703712; ISIN: DE0007037129; Index: DAX, EURO STOXX 50 Listed: Amtlicher Markt in Düsseldorf und Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hamburg, Hannover, München und Stuttgart; EUREX; Swiss Exchange 100803 Aug 04