RWE launches future-oriented business with new subsidiary
New company for renewables, grids and retail in Germany and internationally starts operating
Right on schedule this Friday, 1 April 2016, the new RWE subsidiary for renewables, grids and retail will begin operating. The company bears the temporary name “RWE International SE” and bundles the business areas of renewables, grids and retail in Germany and internationally. Peter Terium, in his dual role as Chief Executive Officer (CEO) of both RWE AG and the new subsidiary said: “The founding of our subsidiary and the planned IPO are mammoth tasks. Thanks to the excellent preparatory work done by our employees, we are, however, right on schedule.”
On the day the company begins operating, the employees of RWE Innogy, RWE Deutschland, RWE Effizienz, RWE Vertrieb and RWE Energiedienstleistungen, among others, will transfer to RWE International SE. The permanent name and branding of the new company is scheduled to be announced in the summer. The IPO should take place by the end of 2016. The exact date of the IPO depends, however, on the market environment at that point in time. The new company is headquartered in Essen, where RWE AG will also continue to be domiciled.
On completion of the Group restructuring process, the new subsidiary is likely to generate annual revenues of around €40 billion, and have around 40,000 employees. These figures are based on the RWE segment results for fiscal 2015. Terium: “We will be fast, decentralised, innovative and close to our customers. During this time of far-reaching transformation in our sector, we do not intend to simply keep up with the competition. We want to take a pioneering role and shape the energy market of the future.”
The management team of RWE International SE is also on board in time for the launch of the new subsidiary: as already communicated, Peter Terium will take the dual role of CEO of both companies, with Dr. Bernhard Günther as Chief Financial Officer (CFO) and Uwe Tigges as Chief Human Resources Officer (CHO) and Labour Director of both RWE AG and RWE International SE. After the successful IPO of the new company, it has been agreed that Terium and Günther will leave the RWE AG Board and continue in their roles on the Board of RWE International SE only. Dr. Rolf Martin Schmitz, currently deputy Chairman of RWE AG, will then become CEO of RWE AG. Dr. Markus Krebber is to replace Bernhard Günther as CFO of RWE AG. Tigges will remain CHO and Labour Director of RWE AG in addition to RWE International SE until the end of April 2017.
The six-member Board of the new subsidiary will also include Martin Herrmann for Retail, Hildegard Müller for Grids and Dr. Hans Bünting for Renewables. These Chief Operating Officers (COOs) will each be supported by an Executive Committee, i.e. a management team made up of divisional Board members:
• Retail will continue to be managed by a tried-and-tested team led by Martin Herrmann, COO Retail: Dr. Filip Thon, Carl-Ernst Giesting, Patrick Lammers, Dr. Martin Muhr and Paul Coffey make up the Executive Committee for Retail. In addition, the COO Retail and the divisional Board members will continue in their roles at the respective international companies. The new head of B2C Retail in Germany will be Dr. Dietrich Gemmel, currently Managing Director of RWE Effizienz, which will be absorbed into the new company. Gemmel will continue as Managing Director of eprimo. The previous head of B2C and Labour Director of RWE Vertrieb, Ralf Zimmermann, retired at the end of March.
• Divisional Board members Dr. Joachim Schneider, Bernd Böddeling and Dr. Marie-Theres Thiell will form the team around Hildegard Müller, COO Grid (as of 1 May).
• In renewables, Dr. Hans Bünting, COO Renewables, will be supported by divisional Board member Dr. Holger Himmel.
Personnel decisions have also been made regarding the management of a number of cross-sectional functions of RWE International SE. These will take effect on 1 April 2016. The following divisional heads have been named: Thomas Birr (Strategy & Innovation), Dr. Peter Heinacher (Corporate Affairs), Dr. Claudia Mayfeld (Legal/Compliance), Dr. Jens Hüffer (Internal Audit), Dr. Frank-Detlef Drake (Research & Development), Katja van Doren (Accounting & Tax), Dr. Stephan Lowis (Finance; Investor Relations), Ruud Wilgenkamp (HR & Executive Management), Armin Arens (Tariff/ Group Workers Council Relationship), Dr. Ulrich Piepel (Procurement), Florian Haacke (Security).
Until the successful IPO of the new company, the above named persons will hold these positions at both RWE International SE and at RWE AG. This is to ensure that the structural adaptations in advance of the IPO of the new company are carried out in the interest of both Group parts. After the successful IPO, most of the managers named will head up the respective area in the new subsidiary. Andreas Zetzsche will be responsible for Mergers & Acquisitions (M&A) until the IPO, also at both companies. After the IPO, Gerwig Koch, who already works for M&A, will take over this position in the new company. With his many years of experience, Zetzsche will subsequently act as a consultant to the management committees of the new company as well as to RWE AG. The process of staffing the as yet unoccupied divisional head positions in both companies is scheduled to be completed by the end of April 2016.
Michael Neff, Chief Information Officer (CIO) and CEO of RWE IT, will retire at the end of June. Marcus Schaper, currently Head of IT at RWE Supply & Trading, has been appointed his successor. He will act as CIO for both Group parts until the IPO, after which he will be CIO of the new subsidiary. From a legal perspective, RWE IT GmbH will belong to the new subsidiary.
The allocation of around 5,000 employees from RWE AG and the other service companies to RWE AG and RWE International SE will take place in several steps. This process should be completed by early 2017 at the latest.
Peter Terium: “I realise that we are asking a lot of our employees at the moment. Many are working on the restructuring of the Group in addition to their daily work. And it’s a complex process to establish all of the new structures, a process that will take some time and continue to require our patience. That’s why I’m so happy to feel the high level of motivation throughout the company. This way we are driving RWE forward, together.”