RWE, the second largest energy company in Germany, will split its business into two companies in 2016. The reason is that RWE is under financial pressure as a result of the ongoing transformation of the European energy industry. RWE will bundle renewable generation, grids and retail in a new, yet unnamed subsidiary ("NewCo"), while the conventional power generation and energy trading activities form the basis for the continued operations of RWE AG. RWE plans to make a capital increase at NewCo by an IPO in Q4, but still be the main shareholder of the new subsidiary. At today’s fiscal 2015 presentation, RWE - as previously announced - reported a loss of €200 million after impairments of €2.9 billion, primarily for conventional power plants in Germany and the UK. Further savings of EUR 500 million and a proposal that virtually no dividend should be paid to shareholders was announced at the same time.