RAG-Stiftung

On 24th May 2018, Werner Müller, Chairman of the Board of Executives for RAG-Stiftung in Essen/Germany, will step down from this role and his seats on the supervisory boards of Evonik Industries AG, RAG Aktiengesellschaft and Deutsche Steinkohle AG for health reasons. When the company‘s board of trustees next meet on 9th May 2018, Bernd Tönjes, previously Chairman of the RAG Aktiengesellschaft Board of Executives, will be elected as Müller‘s successor.

North Rhine-Westphalia‘s Minister-President has announced that former President of German Parliament Norbert Lammert (CDU), Lord Mayor of Essen/Germany Thomas Kufen (CDU) and energy industry manager Andreas Reichel (FDP) are joining the RAG-Stiftung board of trustees. They have taken over from the three members who were removed from the committee following the change of government in North Rhine-Westphalia.

Roughly two years ago, the Essen/Germany based RAG-Stiftung foundation, RAG AG and Evonik Industries AG collaborated with the IG BCE union, Hanover/Germany, to launch the “Glückauf Zukunft!” project, aiming to wind down the German coal mining industry by the end of 2018. The programme acknowledges the industry’s historical achievements while simultaneously setting a course for the era to come. The interim results are encouraging, as the first set of projects has proved very popular. “Glückauf Zukunft!” is growing with impressive momentum.

“What started as an joint initiative by the RAG-Stiftung, RAG, Evonik and the IG BCE out of responsibility for the mining regions has become a broad platform for social engagement,” said Werner Müller, Chair of the RAG-Stiftung Board of Executives, referring to the current progress of “Glückauf Zukunft!” at a press conference held at the Zollverein World Heritage Site in Essen at the end of September 2017 (Figure 1).

The founders launched the initiative in April of last year by inviting all the important players in the German Ruhr to participate and help shape the future of the region. There have been a number of developments since then. Many major bodies have accepted the offer and are playing a role in “Glückauf Zukunft!”. Numerous organisations are planning farewell events or taking a hand in the design of the Ruhr’s future. “Those responsible are not simply leaving their homeland to its fate. There is a sense of growing self-confidence in the mining regions. I think this is a great development and I feel optimistic about the future”, said Müller.

“Glückauf Zukunft!” began with the RAG-Stiftung’s Future Study. One of the study’s findings was that the Ruhr needs new stimuli in order to break out of its mining base and continue its economic development. Founding start-up companies provides important momentum for doing so. Start-ups act as an innovative, invigorating force in the economy – exactly what the Gründerallianz Ruhr founder’s alliance is aiming to do. And the founders of “Glückauf Zukunft!” and the Initiativkreis Ruhr are working together to make this a reality. The Initiativkreis Ruhr economic alliance has already launched numerous activities designed to promote young companies, including the Gründerfonds Ruhr start-up fund, furnished with 30 m € of venture capital. “Together, we want to position the Ruhr as an attractive location for founders. This requires a comprehensive programme of assistance for young start-ups”, explains Bärbel Bergerhoff-Wodopia, Member of the RAG-Stiftung Board of Executives.

As part of the Gründerallianz, the partners are planning to develop a central point of contact in the economy which will aim to keep all the important information, offers and activities in the Ruhr transparent and organised for founders and thereby encourage the growth of the scene in the region. This includes collecting and preparing public data and making it available on a digital platform.

In addition, a particular concern of “Glückauf Zukunft!” is taking the needs of the younger generation into consideration. A number of youth projects have already been successfully completed with this in mind, while others are still to come. One of these was the “Hackathon” for the future of the Ruhr, which was held on 18th and 19th November 2017 in the LVR Industrial Museum in Oberhausen. In keeping with the motto “#NextLevelRuhr – The Hackathon for everyone”, teams had 24 h to develop ideas on how the Ruhr could become more attractive from the perspective of young people. A highly qualified jury will award the best ideas a total of 8,500 € in prize money.

The aim of “Glückauf Zukunft!” has always been to find the right balance between future development and recognising the German coal mining industry and its achievements. 2018 will therefore see a focus on farewell events. One of the high points of these events will be the historic home game: As a token of their special ties with the mining industry, a selection of football players from the Ruhr will compete against the Polish national team. Polish workers were the first migrant workers in the Ruhr and they made a substantial contribution to Germany’s economic recovery after the Second World War. Footballers with Polish roots have become top players at their clubs.

“It is particularly important to us that both miners and residents are involved in the “Glückauf Zukunft!” programme. It is with this goal in mind that we are holding a large, decentralised festival under the motto and banner of “Thanks, miners!”,” explains Bergerhoff-Wodopia. Five RAG sites will therefore be hosting festivals on 3rd November 2018, with various artists from the region set to perform. In addition, a 20-minute compilation from the film “Der lange Abschied von der Kohle” (“The Long Farewell to Coal”) will be shown. The festivals will end with an extraordinary production which aims to say a very special “Thanks, miners” to those who have worked in the industry. Collectively, the five events will provide a reminder of what miners accomplished for people in these mining regions.

All the events can be found online at www.glueckaufzukunft.de/kalender. In addition, a printed version for 2018 will be published in December. (RAG-Stiftung/Si.)

The RAG-Stiftung in Essen/Germany enjoyed continued success in 2016 and is meticulously preparing for the phase-out of the German coal mining industry at the end of 2018. At the annual press conference on 30th May 2017 in Essen, the Board of Executives took stock of the first ten years of the RAG-Stiftung and made it clear that the foundation was also on course for future success.

On foundation, its assets amounted to 6 bn €. When the current Board (Figure 1) took office at the end of 2012, this figure had risen to 11 bn € and currently stands at almost 17 bn €. According to RAG-Stiftung Chairman Werner Müller, this equates to an annual increase in assets of around 9 % since the end of 2012 and is extremely pleasing, particularly against the background of persistent low interest rates.

The profit generated in 2016 was considerably higher than expected. A total of 393 m € was allocated to the provision for perpetual obligations. This is the highest annual profit since the foundation’s creation – apart from the surpluses in 2008 and 2013, in which a larger amount of Evonik shares were sold. The provision for perpetual obligations now stands at 4.84 bn € (4.45 bn € the previous year).

When the RAG-Stiftung begins paying for the perpetual obligations arising from the German coal mining industry as of 2019 for the first time, the foundation estimates this will cost around 220 m € per year. This is offset by an annual income from diversified capital investments amounting to twice the sum of these outgoings.

“It is still possible to earn money in a low-interest environment,” explained Chief Financial Officer Helmut Linssen. “We have been able to do so by adopting a global capital investment strategy and spreading our investments among different asset classes. Moreover, we profit from investment in illiquid assets with higher returns.” The RAG-Stiftung’s diversified capital investments have easily more than doubled since the current Board took office in December 2012: On average, over 700 m €/a were invested . “With well over a year until the German coal mining industry comes to an end, the RAG-Stiftung remains perfectly placed to fulfil the purpose for which it was set up, as of 2019,” emphasised Müller.

Head of Human Resources Bärbel Bergerhoff-Wodopia also spoke positively of the RAG-Stiftung’s selective funding and sponsorship activities: “Since the foundation began its work, we have distributed a total of 30 m € to mining regions for projects in the fields of education, science and culture. When you consider that RAG-Stiftung still had around 1.5 m € available for funding projects in 2012, it becomes clear how we have expanded this area of responsibility over the past few years.” In 2017, the foundation’s funding budget was 13.5 m €. “By funding these projects and focussing on promoting education, we are acknowledging our shared social responsibility for the mining regions in the Ruhr, in the Saarland and in Ibbenbüren,” explained Bergerhoff-Wodopia.

Launched in 2016 to mark the beginning of the phase-out of the German coal mining industry, the “Glückauf Zukunft!” initiative has now developed into an extraordinarily varied program. It was set up by the RAG-Stiftung together with RAG Aktiengesellschaft and Evonik AG, and in association with the German Trade Union for Mining, Chemicals and Energy (IG BCE). The aim of the “Glückauf Zukunft!” initiative is to give mining the send off it deserves and to provide fresh impetus for the future of these mining regions. A project schedule for the initiative will be presented in autumn 2017. (RAG-Stiftung/Si.)

In the presence of Federal Ministers Peter Altmaier and Heiko Maas, the new RAG representative office – a communications centre in a former machine hall – and the Saarpolygon landmark – a 30 m tall steel sculpture – have been opened in mid-September at the Duhamel plant in Ensdorf/Germany (Figures 1, 2). Peter Schrimpf, Vice Chairman of RAG Aktiengesellschaft, Herne/Germany, welcomed around 600 guests to the ceremony.

The decommissioning of the coal mining industry on 30th June 2012 saw the dawn of a new era in the Saar which aims to create new prospects for former mining sites as an alternative to coal production. “This has already been successful in many locations: Innovative companies are relocating to mining areas, new industrial estates and residential areas are being built, solar plants on these sites are now generating green energy instead of non-renewable, with wind farms to follow shortly,” clarifies Peter Schrimpf. He added that RAG continues to bear responsibility for the region in the post-mining era. This included mining relics such as damage caused by mining, old tunnels and shafts or surface mining from the early days of the industry. In order to create new prospects, shafts have to be filled, surfaces restored, surface installations dismantled and the Mining Control Authority disbanded. According to him, the Saar mine water concept for optimising water retention is another key element.

The new RAG representative office has transformed a historic machine hall in the Saar into a place of cooperation and communication, for meeting and dialogue in Ensdorf. The Saarpolygon stands as another symbol of change and awakening at the heart of the celebration, emphasised Schrimpf. The “audacious project” is said to be unparalleled around the world. The construction project was only made possible thanks to the financial support of the Saarland, the RAG and the RAG-Stiftung, as well as donations from private individuals and companies. Schrimpf paid special thanks to the friends’ association, BergbauErbeSaar, for its outstanding commitment to realising the work of art on the 150 m tall spoil tip.

Prime-Minister of the Saarland, Annegret Kramp-Karrenbauer, underlined the symbolic importance of the Saarpolygon as a representation of the federal state’s mining heritage and creative structural change. “It should serve as a constant reminder of our roots, while also guiding us into the future. I would like to thank everyone who worked on this project and I hope that Saarlanders will take time to appreciate this new, walk-through landmark,” said Kramp-Karrenbauer.

The RAG-Stiftung provided a relatively large amount of funding at a very early stage, which allowed the Saarpolygon to be completed. Bärbel Bergerhoff-Wodopia, Member of the Board of Executives of the RAG-Stiftung, was equally impressed: “The polygon is multi-faceted in the truest sense. Not only does it stand for the legacy and commitment of miners, it will also remind us of the tasks that lie ahead in this changing region. The new RAG representative office will contribute towards tackling some of these tasks locally – as a place of exchange and mediation.”

Anke Rehlinger, Minister for Economic Affairs, Employment, Energy and Transport in Saarland, highlighted the following: “Mining has shaped our society and established values that we must not give up. Our mining heritage will live on thanks to the Saarpolygon. But it doesn’t end there. Now it is our job to convey the significance of this place not only as a symbol of tradition but also as a strong indication of change and the forward-looking nature of the Saarland. I am certain that the Saarpolygon will become a landmark for our federal state.” (RAG/Si.)

On 20th June, the RAG-Stiftung in Essen/Germany presented a future study that is setting the wheels in motion for the further development of the former mining regions and triggering a debate on the rejuvenation of the Ruhr region. The RAG-Stiftung also plans to work in close collaboration with other partners to develop initiatives for transforming mining areas in the Ruhr and Saar regions.

In the presence of Hannelore Kraft, Minister-President of the state of North Rhine-Westphalia, Dr. Werner Müller, Chairman of the Board of the RAG-Stiftung, presented the study to the public. The platform for the presentation was the future forum hosted by the RAG-Stiftung and RAG Aktiengesellschaft, Herne/Germany, which was attended by around 400 guests from the world of politics, economics, science and media at the Zollverein World Heritage Site in Essen.

Minister-President of the state of North Rhine-Westphalia, Kraft, who accepted the study on behalf of the state government, praised the study for its welcome contribution to the debate on the future of the mining region. The initiative by the RAG-Stiftung is a mark of the optimistic mood in the area.

During the presentation, Werner Müller outlined the key results of the study, namely that the next ten years will decide whether the Ruhr region will be one of the winners or losers in the competition for global urban centres. The title of the study series, „The Crucial Decade“, is designed to make people think and is something of a call to action.

One of the primary conclusions of the study is that the Ruhr region needs more decisions to be made from the perspective of the younger generation. This is because vital urban centres attract young people by providing them with opportunities for the future. The study also indicates that mega-trends such as globalisation, digitalisation, demographic change and social inequality have a huge impact on urban centres such as the Ruhr region. In all areas, from politics and society to science and education, the experts who were interviewed see that there is a clear need for action in the region. At the same time, they have identified various opportunities for shaping the region‘s future. With the highest density of higher education institutions in Germany, extensive experience in the field of industrial transformation and an internationally renowned and valued cultural landscape, the region has much in its favour.

In a series of seven pointed theses, the future study by the RAG-Stiftung identifies the most important areas of action for the further development of the Ruhr region. It not only creates momentum for public debate, but also outlines the action to be taken by the RAG-Stiftung over the coming years in terms of funding activities, including in collaboration with regional and national partners. (RAG-Stiftung/Si.)

On the occasion of its annual review for the press on 2nd June 2015, the Board of Executives of the RAG-Stiftung drew on the most important highlights of the first half of their current term in office, presented the key points of the 2014 financial year and explained the targets for the current year.

Since the current Board of Executives assumed office in December 2012, the RAG-Stiftung has reached significant milestones in terms of developing the foundation’s assets and securing finance to cover the perpetual liabilities of coal mining cessation, as well as setting other important items for the future agenda. “We have been able to increase the foundation’s assets from roughly € 11 billion at the end of 2012 to more than € 16 billion at present,” said Dr. Werner Müller, Chairman of the Board of Executives of the RAG-Stiftung. “This means we have already established an excellent basis with which we can finance these perpetual liabilities in the future.” To do so, the foundation has to raise approximately € 220 million per year, starting in 2019. This is faced with annual revenues of approximately € 350 million, which are likely to increase. “The foundation will not use the public purse to manage annual expenditure once coal mining has ceased,” stressed Müller. “In other words, we do not want to – and will not – burden tax payers with financing the perpetual liabilities.”

At roughly € 11 billion, the 68 % share in Evonik Industries AG made a substantial contribution to the foundation’s current assets. In the meantime, the 30 % share in Vivawest, acquired by the foundation mid-2013 at a purchase price of around € 900 million, contributes to its assets with a value of over € 1.5 billion, based on the stock market trend of comparable businesses.

The 2014 surplus was € 351 million. This amount was added to the accruals for perpetual liabilities, reaching a total of more than € 4 billion for the first time; at the end of 2012 it was just € 2.6 billion. “This success is the result of sound economic activity and investment decisions based on the future,” said Müller. Since the end of 2013 and notably against the background of permanently low interest rates, the foundation has adapted its investment strategy in agreement with the Board of Trustees, promoted diversification of its investments to spread risk further and established appropriate structures to that end.

Thanks to its two investment companies, the foundation currently has a share in seven medium-sized, expanding businesses from different sectors, with a total investment volume of around € 300 million. Financial Director, Dr. Helmut Linssen, explained, “We are a long-term, reliable investor that wants to generate stable income on a lasting basis. And that is because we need that income to finance ‘perpetual’ liabilities.” In addition, the foundation has invested around € 150 million in international private equity and infrastructure funds, thereby investing at a more international level. Linssen said, “The total value of our diversified investments currently lies at roughly € 4 billion, which is a quarter of the foundation’s € 16 billion or so in assets. We want to increase this amount in the future.”

HR Director, Bärbel Bergerhoff-Wodopia, highlighted the increasing significance of education, science and culture in the regions affected by the cessation of coal mining: “The RAG-Stiftung fulfils its social responsibilities by running projects with specific objectives and has raised the ever-greater challenge in accordance with the 2014 finance volume by € 3 million up to € 4.5 million and increased the budget to € 7.5 million for 2015.” Furthermore, Bergerhoff-Wodopia presented the special project, “Glückauf Zukunft!”, which is designed as a series of initiatives running up until the last coal mine is closed at the end of 2018, in order to acknowledge the historic contributions of coal mining and to simultaneously give impetus to the post-coal mining era. The project was started as a community initiative by the foundation, RAG and Evonik, and in collaboration with social partner IG BCE. The single largest project in this regard is a thorough renovation of the Bergbau-Museum in Bochum, for which the foundation has set aside up to € 15 million.
(RAG-Stiftung/Si)

The RAG Stiftung in Essen has two new members on its board of trustees: management consultant Monika Schulz-Strelow, who was appointed by the state of North Rhine-Westphalia, and Federal Minister of Justice and Consumer Protection Heiko Maas, who was appointed by the state of Saarland. This brings the number of board members up to 14.