2005 - 2006 - Pinsent Masons Water Yearbook 2012

GERMANY PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
RWE AG
RWE is one of the largest of the German multi-utilities. In the late 1980s, the company began to
develop RWE Umwelt AG into one of Europe’s largest waste management companies. In the mid
1990s, the company set up RWE Aqua as a subsidiary of Umwelt, to exploit the opening up of the
water and wastewater markets in Germany and in central and eastern Europe.
RWE AG, profit and loss account*
Y/E 31/12 (€ million) 2000 2001 PF 2002 2003 2004
Turnover 47,918 50,366 46,633 43,875 42,137
Pre-tax profit 2,151 2,194 2,722 2,123 3,935
Net profit 1,212 1,350 1,050 953 2,137
Earnings per share (€) 2.24 2.40 1.87 1.69 3.80
*2000 year end 30 June, year end changed to 31st December in 2001; 2001 figures are pro forma.
RWE Water Division
RWE sought to become the third largest European water company by 2005 and achieved this in 2000
through its agreed bid for Thames Water. As a result of the September 2001 bid for American Water
Works, RWE Thames Water is now the third largest water utility company globally and the market
leader in Germany, the UK and the USA.
RWE TW is organised into two core regions, with a corporate office in Reading, near London in the
UK. The North America region is based in Voorhees, New Jersey in the United States. The European
region is headquartered in Reading. The non-core International activities (Asia Pacific, Chile, Turkey
and the Middle East) are also headquartered in Reading.
Population served (million)
2003 2004 2005
Thames Water Utilities 12.7 12.6 12.6
North America 16.7 16.5 16.5
Other 40.7 45.8 46.3
Total 70.0 70.3 75.4
Billion m³ pa
Water supplied 4.9 4.0 5.1
Wastewater treated 3.0 2.5 3.8
A move away from non core markets
In 2004, RWE decided to concentrate on its European and American activities by means of a
“managed exit from non-core markets”. A number of disposals to achieve this aim have occurred.
Thames Shanghai Water Works was sold to the Shanghai Municipality in 2004, the company was
awarded a contract for China’s first privately funded water treatment project at Da Chang in Shanghai
in 1995, the decision was made to sell after a law passed in 2002 forbade fixed rates of return on
foreign ventures. American non-core products companies Leopold and Ashbrook were disposed of in
2004 and 2005 respectively. Entities in Thailand and United Water in Australia and New Zealand
have been disposed of in 2005. During 2005, RWE has sought to sell its activities in Chile, Ajman
and the China Water Company. These activities are expected to be sold by the end of the year.
FY 31/12 (€ million) 2001 2002 2003 2004
Turnover – Europe & ROW [1] NA 2,439 2,335 2,264
– UK Regulated business NA 1,719 1,603 1,680
Turnover – Americas NA 411 1,914 1,801
Total turnover 2,746 2,850 4,249 4,065
Operating profit – Europe & ROW NA 846 847 884
– UK Regulated business NA 651 592 612
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Pinsent Masons Water Yearbook 2005 – 2006