Learn more about the trading unit of STEAG "Trading & Optimization"

1. Trading & Optimization

2. WE are STEAG.
Our facts and figures
 WE are specialists in the generation of electricity and heat on the
basis of a wide variety of technologies, and for the marketing of
electricity and heat;
 with 9 hard coal fired and 1 refinery power plants in Germany,
and 3 hard coal fired power plants in Colombia, Turkey
and the Philippines;
 with more than 200 distributed generating facilities on
the basis of renewable sources, for energy supply to
industry and heat supply;
 with an installed net-capacity of 7,450 MW in Germany
and 1,720 MW abroad;
 with a workforce of 5,920 worldwide;
 with total sales of EUR 3,568 million and EBITDA of EUR 399 million
in 2015;
 with an investment volume of around EUR 219 million in 2015.
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3. WE are STEAG.
Strongly rooted in our home region
KSBG Kommunale Beteiligungsgesellschaft GmbH & Co. KG
 a holding company owned jointly by 7 municipal utilities in the Rhine-Ruhr region:
Dortmunder
Energie- und
Wasserver-
sorgung GmbH
(DEW 21)
18 %
Dortmunder
Stadtwerke AG
(DSW 21)
18 %
Stadtwerke
Duisburg AG
19 %
Stadtwerke
Dinslaken
GmbH
6 %
Energie
versorgung-
Oberhausen AG
6 %
Stadtwerke
Essen AG
15 %
STEAG GmbH
100 %
3
Stadtwerke
Bochum
Holding GmbH
18 %

4. Voerde
Power Plant Park
Voerde
(2,234 MWel)
Walsum 10
Coal Power Plant
Duisburg
(790 MWel)
Ullersdorf
Wind Farm
Project
Ullersdorf
(43 MWel)
Bexbach
Coal Power Plant
Bexbach
(780 MWel)
RKB Refinery
Power Plant
Leuna
(162 MWel) (thereof 56 MW equiv.)
WE are STEAG.
Present throughout Germany
STEAG headquarters
Own power plants /
investment projects
Distributed facilities
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Berlin representative office

5. Mindanao Coal
Power Plant
Philippines
(232 MWel)
STEAG headquarters
Own power plants /
investment projects
Representative offices /
subsidiaries
Operation and
maintenance contracts
Engineering / projects
Disposal and marketing
of power plant by-products
Termopaipa IV
Coal Power Plant
Colombia
(165 MWel)
Arenales
Concentrated
Solar Power Plant
Spain
(50 MWel)
Iskenderun
Coal Power Plant
Turkey
(1,320 MWel)
Vishakhapatnam
Coal Power Plant
India (1,040 MWel)
5% shareholding and
operation & maintenance
Crucea North
Wind Farm
Romania
(108 MWel)
WE are STEAG.
International reference projects
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6.  Asset-based commodity trading
an sales trading and sales
trading
 Capacity marketing
 Energy marketing (electricity,
district heating, steam and
compressed air)
 Portfolio optimization
 Energy management services
 Hard coal
 CO2 certificates
 Natural gas
 Mine gas
 renewable resources
 scrap wood
 Project development
 Project implementation
 Engineering services
 Energy contracting
 Recycling and marketing of power plant by-products
 Conventional power plants
 Power plants based on
renewable sources of energy
WE focus on what we do best: planning, developing, building
and operating power plants, and marketing the energy and by-
products they produce
We are STEAG
Our focus
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What we do best

7. Trading & Optimization is STEAG’s trading organization
We control and market the output from STEAG’s power plants
Trading & Optimization
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Tradition and change
We have come from
concentration on engineering
and management of hard coal
fired power plants
via
first steps in trading and
marketing of our own
power plant output shares
to being
an international trading
organization with broadly
based assets

8. Transfer of wholesale activities from Germany to Turkey
Management of the entire value chain of Assets
Asset base: Iskenderun coal fired power plant, 1,210 MW net
Süloglu wind farm, 60 MW net
Expansion of trading activities
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Internationalization:
Turkey as an example
2016
Establishment of structures
and creation of market access
2017
Start of wholesale
activities in 2017
Turkey

9. We optimize all the stages in the value chain
Drawing on abundant resources
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Value chain
 Optimizing power plant
deployment
 Management of renewables
facilties and large-scale
battery systems
 Marketing of control power
 Procurement of coals and
gas, and of CO2 emission
allowances
 Purchasing of marine
freight
 Management of inland
logistics
 Over 120 market access points
 From future through the spot
market to intraday trading
Trading &
Optimization

10. Individual logistics for 8 Mio. tons of coal per year by vessels, barges,
transshipments and rail transports
Raw Materials Procurement & Logistics
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Sourcing portfolio
- coal
Diverse coal
qualities
 Fines
 High Ash Coal
 High Sulphur Coal
 Low Grade Coal
 Slurry Coal
 Sized Coal
10,1 Mio. t Handelsvolumen 2015
USA
Columbia
South Africa
Czech Republic
Germany
Poland
Russia

11. Raw Materials Procurement & Logistics
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Our Strengths – your benefit
 Central
procurement
management of
combustibles and
logistics for our
power units and
customers
 Benefit from scale
effects
 Flexible sheduling
of deliveries
 Connected
handling and
optimizations of
sea- and domestic
logistics (water-
and railway)
 Freight cooperation
(Part cargo)
 Integrated capacity
Management
(sea- / domestic-
and power plant
storage)
 Coal blending to
fulfil specific
requirements of
our power plants
and cusotmers
 Diversification of
qualties and
countries of origin
 Individual logistics
by vessels, barges,
transshipments
and rail transports
01
Using the
synergies out of
our portfolio
03
Qualified service
& consulting
04
Portfolio
optimization
02
One stop
Sourcing &
Logistics

12. 24. Mai 2016
Domestics transports in 2015
Amsterdam
Rotterdam
Antwerpen
Ruhr
3,7 GW net
20 km
Duisburg
Saar
1,8 GW netto
in
1,000 t
ARA
Ruhr
ARA
Saar
ARA
Duisburg
Duisburg
Ruhr
Duisburg
Saar
barge 1,700 200 1,800
rail 500 1,300 1,000 800
direct transport 3,700 split transport 1,800

13. CDS/CSS
We optimize our trading positions to exploit market volatility
 “Market value” of a classical coal asset: Clean Dark Spread (CDS)
“Market value” of a classical gas asset: Clean Spark Spread (CSS)
= Difference between electricity and fuel price including CO2 price
 These market values fluctuate in relation to the electricity, gas,
coal and CO2 prices
Marketing & Trading
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Asset marketing
the objectiveis to secure and preserve the value of earnings
from STEAG’s generating assets, taking account of the risk strategy

14. Marketing of its own assets puts STEAG in contact with a large number of
market partners – We also offer that market access to you
Broad market access to over 120 market partners
Commodities: Electricity, gas, coal, EUAs
Basis: Commodity framework agreement or EFET
Energy management network
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Broad market access
Municipal
utilities
Industrial
customers
Market
partners
Non-standard products
Standard products
Hourly & quater-hourly
Operating schedules
Long-term deliveries
Intraday / spot market access

15. With our power plant deployment optimization system
we control electricity production flexibly and on a short-term basis in response to the
current demand
Control & Optimization
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Control and
optimization of assets
 Compensation by a large, diversified pool of assets
 Load dispatch center staffed 24/7
 Individual marketing and optimization
 Transparent open book models
TARGET
ACTUAL

16. We are using our pioneering know-how to implement the
large-scale battery systems project
Large-scale battery systems
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Investment in a secure
future
 STEAG has a know-how lead in battery storage systems as it
commenced research and development in that field as early as
2009
 Commercial investment in 6 large-scale batteries of 15 MW
each, to provide primary control power to the transmission
system operators, ensuring grid stability and system security
 Location at 6 STEAG power plant sites in Germany, using the
existing grid connections (synergies)
 Use of established lithium-ion technology for the cells of the
large-scale batteries, and fulfilment of the regulatory
requirements in the latest Transmission Code (30 minute
criterion)
 Rapid completion time for 6 large-scale battery systems without
drawing on subsidies
 Start of installation in April 2016
 All systems in place and operational by the end of 2016

17. STEAG covers the entire value chain for large-scale
battery systems – as a service provider for you too
The full value chain in one pair of hands
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Large-scale battery
systems
Planning, investment
and commissioning
Operation, servicing
and maintenance
Prequalification for
marketing on
energy markets
Energy trading
and marketing

18. OneOpt controls and optimizes your assets and ours
From procurement of raw materials to the most efficient marketing
OneOpt
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STEAG‘s optimization
network
We make these systems one
and use the available synergies

19. Our resources are there for you
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24/7 staffing
Broad market
access
High degree of
individualization
Optimization of the
entire value chain
Contacts on an equal
footing
Transparency
and insights
Benefit form our
lagre portfolio
Support for the
Energiewende

20. Further information at
www.steag-oneopt.com
Visit us at LinkedIn
www.linkedin.com/company/steag-gmbh
Thank you for your attention