1. Coal industry restructuring in Germany Prof. Dr. Franz-Josef Wodopia, Chief Executive, German Coal Association

2. 1 German Coal Mining History 117.4 coal production in Mt saleable workforce (in thousand) 531.9 139.4 577.5 377.0 135.1 110.8 244.4 186.8 86.6 81.7 178.8 66.1 122.9 4.,8 78.1 25.7 45.6 12.1 20.9 144.7 585.2 53.2 92.6 21.3 32.8 112.0 264.0 driving re-construction after 1947ECSC Treaty – Base of the EU coal crisis/RAG establishment 1969future until 2018 source: RAG AG

3. 2 mines coking plants Establishment of Ruhrkohle AG in 1969: approx. 180,000 staff Where did we start? source: RAG AG, 2015

4. 3 SteinfurtCounty Ibbenbueren mine Auguste Victoria mine Prosper-Haniel mine mines 2014: approx. 10,200 staff Where are we today? source: RAG AG, 2015

5. 4 Ruhr area Saar area Ibbenbüren miners additional workforce in mining-related jobs: inside the mining areas outside the mining areas miners total number of jobs created by the hard coal mining industry thousand 2007 GVSt 2008 Employment effects of the German coal industry by region

6. 5 source: Prognos, 2007 up to 0.1% up to 3.0% up to 1.0% up to 4.0% up to 2.0% up to 5.0%above 5.0% Hamminkeln Schermbeck Dorsten Haltern Datteln Selm Werne Hamm Bönen Berg- kamen Unna Frönden- berg Dortmund Holz- wickede Ennepe- Ruhr-Kreis Schwerte Bochum Essen Duisburg Mülheim Neu- kirchen- Vluyn Moers Kamp- Lintfort Sons- beck Xanten Wesel Hünxe Voerde Rhein- berg Dins- laken Ober- hausen Glad- beck Gelsen- kirchen Herne Reckling- hausen Marl Herten Bottrop Castrop- Rauxel Lünen Kamen Oer- Erken- schwick Hagen Alpen Waltrop Current rate of unemployment (February 2015) - Ruhr area: 11.2% (between 7.3% and 13.9%) - Germany: 6.9% Implications for the regions: Number of employees in the mining industry compared to total employment in the German Ruhr area

7. 6 ~ 68%100% Our shareholder: the RAG Foundation Tasks of the RAG Foundation Tasks of the RAG Foundation ■ Socially acceptable adaptation of the coal mining industry until the end of 2018 ■ Floating of EVONIK Industries AG on the capital market ■ Funding of the industry‘s perpetual responsibilities from 2019 onwards ■ Supporting education, science and culture in the mining regions source: RAG AG, 2014

8. 7 Approved state aid to facilitate the closure of uncompetitive coal mines according to the German closure plan million € Article 3*: Closure aid (current production) Article 4*: Aid to cover exceptional costs (not related to current production!) 37% 48% 54% 74% 100% ** *Council Decision 2010/787/EU **From 2019 onwards depreciations from the closure of the last mines and further costs of production units which have closed shall be distributed over several years. Therefore this figure is only an estimate of the necessary Art. 4 aid in this year.

9. 8 Measures for socially acceptable workforce adaptation ■ For socially acceptable workforce adaptation, a comprehensive package of instruments is available. ■ It includes: ■ statutory regulations, ■ collective bargaining regulations, ■ internal company programmes.

10. 9 Age structure of the workforce in the German coal mining industry 1970197519801985199019952000200520102014 up to 19 20-24 25-29 30-39 40-49 50-54 55 and older

11. 10 on-the-job qualification qualification/retraining temporary placement direct redeployment in-house redeployment early retirement redundancy payments labour-to-labour transfers ( StaffDevelopmentC enter) special mining-specific early retirement regulations Strategy 2020 – More than just early retirement … source: RAG AG, 2015 What we do

12. 11 socially acceptable workforce reduction 1997 - 2014 - 70,810 81,000 10,190 YE 2014 2,210 40,880 + 9,390 10,550 trainees early retirement qualification/retraining/flexibilisation aid in-house redeployment/hive-off fluctuation 26,560 YE 1996 Which path do we follow? source: RAG AG, 2015

13. 12 RAG: staff transfers 2012 to 2018 Ruhr region 840 400 Saarland Saar mine (closure 30.06.2012) West mine (closure 31.12.2012) Prosper-Haniel mine Auguste Victoria mine Ibbenbueren mine Ibbenbueren region 620 260 source: RAG AG, as of 7/2012 GVSt 7/2012 Service div. 50 960

14. 13 early-retirement scheme of RAG source: RAG AG, 2011

15. 14 Some 900 former miners now work in the "white sector“. Some 100 former miners now work at Dortmund Airport. source: RAG AG Instruments for socially responsible workforce reduction