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RWE recognises impairments

Earnings in the European power plant sector curtailed / Terium: "Fundamental change of the generation market"

(PresseBox) (Essen, ) RWE AG has recognised an additional impairment of about €3.3 billion compared to the interim financial statements as of 30 September 2013. About €2.9 billion in impairments are largely attributable to the Conventional Power Generation Segment and owed to the significant deterioration in earnings in the Continental European power plant sector. A need for impairment has also been identified in the Renewables Segment and at further participations. The impairments will reduce the non-operating result and therefore also the net income for 2013. However, they will not have an impact on EBITDA, the operating result or recurrent net income for fiscal 2013 and will not have an effect on cash.

"Throughout Europe, gas and hard coal-fired power stations in particular are under substantial economic pressure," explains Peter Terium, Chairman of the Executive Board of RWE AG. "By recognising this impairment, we are taking account of the fundamental changes in framework conditions on the European generation market in particular. However, we are already reacting to the difficulties in terms of earnings - with which all European power producers are faced - and are further reducing the costs of our power plant fleet with resolve, in order to increase our earning power."