RWE
Brand value
$4,396m
Brand rating
A+
Enterprise value
$32,042m
Value / market cap
13.7%
This brand has received no votes.
Market cap
* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.
Performance of the brand
Rheinisch Westfälische Elektrizitätswerk (RWE) is not only Germany’s number one power producer, but also one of Europe’s leading gas and electricity companies. RWE covers the entire energy value chain by engaging in the operation and construction of power plants, commodities trading, as well as in electricity and gas transmission and sales. Every day, over 70,000 employees supply around 8 million customers with gas, as well as a whopping 16 million with electricity. However, the Tōhoku earthquake in Japan in March 2011 suddenly meant a dramatic change for the world’s major energy providers – including RWE. The earthquake and tsunami caused the world’s largest nuclear disaster since Chernobyl in 1986, resulting in nuclear meltdowns and the release of radioactive materials at the Fukushima Nuclear Power Plant. Shortly after this disaster, various nations recognised the danger nuclear power plants bury and started considering a nuclear phase out. After Germany decided to phase out nuclear energy by 2022 and to focus on clean and renewable energy instead, RWE had to start considering a shift towards clean energy, since nuclear power plants were a major part of the company’s portfolio so far. As a result of the decision of a nuclear phase out and the immediate shutdown of several nuclear power plants in Germany, RWE had to face a decrease in revenues of 46% during the first nine months of 2011. Thus, RWE also sees its major goal in building new and environmentally friendly power plants in order to cope with the changing industry developments. Consequently, climate friendly and more efficient fossil fuel-fired power stations will play a major role, but also renewable energy and climate protection itself will become increasingly important. Looking at RWE’s brand value, the plans to phase out nuclear energy left its marks on the German electricity provider. In 2011, brand value decreased by 20.4% to $4,928 million, compared to $6,194 million within the 2010 brand valuation result. At the same time, enterprise value decreased from $72,480 million in 2010 to $57,747 million in 2011 (-20.3%), also contributing to the downgrading of RWE’s brand value from AA to A+ in 2011. Looking at the recent developments in the energy sector, RWE will be facing tough times during the upcoming years. In order to make its brand and enterprise value increase again, RWE will have to react quickly to changes in the market, as well as in customer needs.
League tables
RWE appears in the following brand league tables:
Rank 236 in the
Global 500 2012.
Rank 18 in the
Germany 30 2012.
Rank 197 in the
Global 500 2011.
Rank 197 in the
Global 500 2011.
Rank 15 in the
Germany 30 2011.
Rank 134 in the
Global 500 2010.
Rank 159 in the
Global 500 2009.
Rank 120 in the
Global 500 2008.
Rank 184 in the
Global 250 2007.
2012 brand performance*
Brand value
$4,396m
Brand rating
A+
Enterprise value
$32,042m
Value / ent. value
13.7%
* Figures taken on 31st December 2011.
2011 brand performance*
Brand value
$4,928m
Brand rating
A+
Enterprise value
$38,922m
Value / ent. value
12.7%
* Figures taken on 31st December 2010.
2010 brand performance*
Brand value
$6,194m
Brand rating
AA
Enterprise value
$72,480m
Value / ent. value
8.5%
* Figures taken on 31st December 2009.
2009 brand performance*
Brand value
$4,352m
Brand rating
A
Enterprise value
-
Value / ent. value
-
* Figures taken on 31st December 2008.
Company history
The “Rheinisch-Westfälische Elektrizitätswerk AG” (RWE) was founded on April 25 in 1898 in order to initially provide the city Essen with electricity. The first power station was built in Segeroth, a suburb of Essen. In 1902, August Thyssen and Hugo Stinnes acquired the majority of RWE with the aid of their consortium including Deutsche Bank, Dresdner Bank and Disconto-Gesellschaft. Especially an aggressive acquisition policy and numerous foundations of electric power stations and public utilities under the leadership of Alfred Thiel (managing board 1902–1930) and Bernhard Goldenberg (managing board 1904–1917) quickly paved RWE’s way as one of the biggest energy companies in Germany. Between 1936 and 1966, the affiliated company “Rheinisch-Westfälische Straßen- und Kleinbahnen GmbH” was actively dealing with the energy supply for road- and train operations. In 1962, RWE already employed 15,000 employees and generated a yearly turnover of 2.1 billion Deutsche Mark (DM). One decade later, in 1972, RWE counted 56,600 employees and generated a yearly turnover of 6.8 billion DM.
In 2000, RWE merged with its competitor “Vereinigte Elektrizitätswerke Westfalen” (VEW). In 2005, RWE sold its water supply companies Thames Water in Great Britain and American Water in North America. During the last years, RWE developed from a worldwide operating energy- and water supply company to a rather energy supplying company, particularly focusing on the European market.
Key people
Dr. Jürgen Großmann, CEO
Dr. Jürgen Großmann serves as President and Chief Executive Officer at RWE AG since October 2007, where he is responsible for group communication, group executive management and compliance. Before starting his career at Klöckner-Werke AG Group in Duisburg Germany, he studied Business Administration in Göttingen, Freiburg and Purdue (USA) and completed his doctorate at the Technical University of Berlin.
Dr. Rolf Pohlig, CFO & Executive VP
Dr. Rolf Pohlig serves as Chief Financial Officer of RWE AG since January 2007 and also holds the position of Executive Vice President. He is responsible for group controlling and organisational efficiency, investor relations, group finance, as well as group accounting and tax. Before joining RWE as CFO in 2007, he served as Executive Vice President Mergers & Acquisitions at E.ON AG.
