How RWE is benefiting from its collaboration with SKF as a solution provider

1. How RWE is benefiting from its collaboration with SKF as a solution provider Dr.-Ing. Bruno van den Heuvel RWE Power AG Head ofDiagnostics & Technical Services SKF Capital Markets Day 2014 London

2. RWE today: Oneoftheleading European utilities Key figures 2013 Key figures 2012 2013 RWE AG RWE AG Management and support functions RWE Innogy RWE Generation SE ~ 2,000 FTE Total> 17,000 FTE Hard coal, natural gas, biomass Nuclear energy Hydro power Lignite Technology ~ 250 FTE Opencast mines Planning & service ~ 7 GW ~ 3 GW ~ 2 GW ~ 11 GW Processing FTE:Full-time employees ~ 1,000 FTE ~ 1,600 FTE ~ 150 FTE ~ 2,800 FTE ~ 5,100 FTE ~ 900 FTE ~ 600 FTE ~ 10 GW ~ 1,800 FTE ~ 7 GW ~ 900 FTE 2013: 98.3 mill. mt lignite 466 mill. m3 overburden

3. Opencast mining at RWE 20 bucket wheel excavators High-capacityminingequipment & beltconveyors (Replacementvalueofligniteproductionequipment ~ €7.5 billion) About 250 km belt conveyorsTotal capacity installed: 925 MW 20 spreaders

4. Lignite miningandtransportationtothe power plants Lignite seam in theHambachmine Lignite stockpile in theHambachmine Train loading in theHambachmine Company-owned railway system Lignite stockpile in the Neurath power plant

5. Maintenance atRWE OpencastMines 2004 1995 Focus: Focus: Focus: Cost cuttingefficiencyenhancement Availability Asset management: • Life-cyclecost • Overall equipment effectiveness • Total cost of ownership Primary cost at RWE lignite mines 2013: €1000 mill. Production Maintenance Life-cyclecostofminingequipment €350 mill. Depreciaton Energy Maintenance isa corebusiness Maintenance is a core competence for RWE

6. Maintenance is RWE's core competence • We decide on our maintenance strategies and activities • We perform maintenance ourselves and learn from failures • We (not our OEMs) continuously improve life cycle cost • We choose our suppliers based on life cycle cost

7. Maintenance is RWE core competence Ourneeds, demandsandexpectations: • Reliableproducts for sustainableandreliableoperation • Deepunderstandinganddetailedknowledgeofourspecialassetsandoperatingconditions • Technical support andsolutions for ourspecialassetsandoperatingconditions • Excellentdeliveryperformance • Continuousimprovement

8. Slewablesuperstructure Substructurewithcrawlertracks Slewingrim Rolling bearings in RWE opencastmines Approximately 1 500000 bearings in operation app. 1 200 000 bearings 100 mm 38 bearings  21 000 mm ! The performance of bearings and bearing systems is of great importance for reliable and cost-effective operation

9. Bearingfailuresandtheirrootcauses Most commonrootcausesofbearingfailures Lack oflubricant Unsuitablelubricant Contaminations Assemblyfaultsandconse-quentialerrors ? Reference: Dethloff, AKIDA 2002 ExperiencesgainedatRWE Power “Most bearing failures are not due to the bearing, but to something wrong in its environment” Inappropriatebearingselection Agedlubricant Material ormanufacturing fault(bearingmanufacturer)

10. Bearingfailuresandtheirrootcauses Lack oflubricant Unsuitablelubricant Contaminations Experiencesgainedat RWE Power Assemblyfaultsandconse-quentialerrors • Weareresponsible • We need good components around the bearing • Weneedcompetentsupportfrom a reliablepartner Inappropriatebearingselection Agedlubricant Material ormanufacturing fault(bearingmanufacturer)

11. The rolling bearing: Just a mechanical component, or a system? Mercedes C63 AMG, 487 hp Our needs and demands: Components and services combined as part of the overall system with emergencyspare wheels http://de.autoblog.com/2012/01/15/ verruckt-supercar-drift-auf-4-notradern-video/

12. Using SKF Solution Factory for easyaccess to SKF's knowledge and offerings RWE Solution Demand SKF platforms SKF Solution Factory SKF Sales

13. RWE – SKF: Examples of a valuable cooperation • Seals • Lubrication systems • Mechatronics Engineering consultancy and service • Design and calculation • Selection of maintenance strategies • Condition monitoring and diagnostics • Various services • Remanufacturing

14. Typicalbeltconveyordrivestation (8 MW driving power)

15. Benefitingfromsimulationand design validation SKF solution: Engineering consultancy provides design validations and significant design improvements using e.g. a calculationtoolforanalysingthekinematicsofcomponents in cylindricalrollerbearings SKF • Benefit for RWE: • Extended rating life • Significantly extended service life • Substantially reduced life-cycle cost Roller centred brass cage Piercedrollersandpincage Source: SKF Report: Dynamische Lageruntersuchung von Zylinder-rollenlagernfür innengelagerte Bandtrommeln der RWE Power AG

16. RWE – SKF: Examples of a valuable cooperation • Seals • Lubrication systems • Mechatronics Engineering consultancy and service • Design and calculation • Selection of maintenance strategies • Condition monitoring and diagnostics • Various services • Remanufacturing

17. Failure-based Failure-based Condition-based Condition-based Time-based Time-based DIN 13306 Preventive (prevention of damage) DIN 13306: Reactive (repairofdamage) Maintenance strategies (DIN 13306) Fixed intervals for maintenance measures as a function of the components’ operating hours Maintenance depends on condition assessment /degree of wear Repair after malfunction occurs At RWE maintenance consists of several maintenancestrategies and is defined separately for each machine! Railway Bucket-wheeldrive Idlers

18. Selectionofsuitablemaintenancestrategies SKF solution: SKF RCM Reliability Centered Maintenance • Benefits for RWE: • Best strategies according to reliability, risk, costs and profit, based on our maintenance experience

19. RWE – SKF: Examples of a valuable cooperation • Seals • Lubrication systems • Mechatronics Engineering consultancy and service • Design and calculation • Selection of maintenance strategies • Condition monitoring and diagnostics • Various services • Remanufacturing

20. ConditionmonitoringanddiagnosticsforreliableproductionplanningConditionmonitoringanddiagnosticsforreliableproductionplanning SKF solution: Structure-borne, sound-based machinery diagnostics on gear units and drivelines to 'Decision' via 'Information' from 'data' Deductionofrightmaintenancedecision Data acquisition Data mining Generation ofinformation Time signalofvibrationacceleration Signal processingandconditioning Pitting Vibration levelacceptablenoactivities Event Beschl. [mg] Frequency [Hz] • Benefits for RWE: • Identify and solve problems before they become serious • Significantly reduced unplanned downtime • Significantly reduced consequential damages • Substantially reduced life-cycle cost

21. Preventingfailuresof an induceddraughtfan • SKF solution: • New housings, uniquesealingandlubricationsystem • Online conditionmonitoringsystem for earlydetectionofupcomingfailures • Benefit for RWE: • Increased operational availability • Significantly extended service life • Substantially reduced life-cycle cost

22. RWE – SKF: Examples of a valuable cooperation • Seals • Lubrication systems • Mechatronics Engineering consultancy and service • Design and calculation • Selection of maintenance strategies • Condition monitoring and diagnostics • Various services • Remanufacturing

23. Alignmentoftrackrollersofrotarytubedryers • Benefit for RWE: • Extended bearingservicelife • Higher performanceandavailability

24. Ensuring accuracy of flange flatness Erectionandinstallationof 6 MW offshore wind turbine • Benefit for RWE: • Mobile application • Controlanddocumantationofquality

25. Analysingslewingrims in bucketwheelexcavators Inspection after 30 years ofoperation: Are theballsreusableorscrap? SKF solution: • Radiographicalexaminationofresidual stresses • Scanning electron microscopic examinations of the surface • Results: • No typical rolling fatigue • Repair is possible • Necessary metal removal rate: 0.2 mm • Benefit for RWE: • Significantly reduced life-cycle cost

26. RWE – SKF: Examples of a valuable cooperation • Seals • Lubrication systems • Mechatronics Engineering consultancy and service • Design and calculation • Selection of maintenance strategies • Condition monitoring and diagnostics • Various services • Remanufacturing

27. Remanufacturingof bearings Since 1980: cleaning, polishing, preserving, packaging, stocking of bearings for conveyor drums by RWE Power's Maintenance & Engineering Center SKF solution: Remanufacturing (since 2004) • Benefit for RWE: • Recycling-rate significantlyincreased • Life-cycle cost substantially reduced

28. RWE – SKF: Examples of a valuable cooperation • Seals • Lubrication systems • Mechatronics Engineering consultancy and service • Design and calculation • Selection of maintenance strategies • Condition monitoring and diagnostics • Maintenance services • Remanufacturing

29. Bearingfailure after severegreasecontamination Operating time: 34 monthsAnalysis oflubricant/grease: 99,700 mg silicon/kg

30. Sealing solution to prevent severe grease contamination SKF solution: New tailor-made unique sealing system for the non-locating bearing of the bucket wheel shaft • Benefits for RWE: • Increased operational availability • Significantly extended service life • Substantially reduced life-cycle cost

31. Why SKF? What do we value at SKF? • High-quality products for sustainable and reliable operation • Offeringofservicesandsolutions • Knowledge about bearing systems and knowledge of RWE's assets, needs and special operating conditions • High servicelevel • Excellentdeliveryperformance Conclusion: • SKF meets RWE's needs, demands and expectations • SKF isthepreferredsupplierforbearingsandrelatedproducts • SKF is RWE's strategic partner for delivering sustainable and added value

32. The rolling bearing: Just a mechanical component, or a system? http://cloudlakes.com/data_images/models/mercedes-benz-c63-amg/mercedes-benz-c63-amg-13.jpg Perfectsystem! Excellentperformance!

33. A valuable cooperation built on trust between RWE and SKF: The sustainablerecipeforsuccess! THANK YOU FOR YOUR ATTENTION