elec in Ger 2012.pdf

Germany - Electricity 0165 - 0663 - 2011
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MarketLine Industry Profile
Electricity in
Germany
September 2012
Reference Code: 0165-0663
Publication Date: September 2012
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

EXECUTIVE SUMMARY
Market value
The German electricity market grew by 4% in 2011 to reach a value of $116.3 billion.
Market value forecast
In 2016, the German electricity market is forecast to have a value of $149.9 billion, an increase of 28.9% since 2011.
Market volume
The German electricity market shrank by 0.1% in 2011 to reach a volume of 531.1 TWh.
Market volume forecast
In 2016, the German electricity market is forecast to have a volume of 533.2 TWh, an increase of 0.4% since 2011.
Category segmentation
Industrial is the largest segment of the electricity market in Germany, accounting for 42.6% of the market's total value.
Geography segmentation
Germany accounts for 15% of the European electricity market value.
Market share
E.ON AG is the leading player in the German electricity market, generating a 19% share of the market's volume.
Market rivalry
German electricity demand is expected to remain sluggish in the near future – similar to that of other modern
industrialized European countries – due to the lack of economic growth. Rivalry in the German electricity market is
moderate, with four large players dominating.

TABLE OF CONTENTS
Executive Summary .......................................................................................................................................................2
Market value...............................................................................................................................................................2
Market value forecast.................................................................................................................................................2
Market volume............................................................................................................................................................2
Market volume forecast..............................................................................................................................................2
Category segmentation..............................................................................................................................................2
Geography segmentation...........................................................................................................................................2
Market share ..............................................................................................................................................................2
Market rivalry..............................................................................................................................................................2
Market Overview ............................................................................................................................................................7
Market definition.........................................................................................................................................................7
Market analysis ..........................................................................................................................................................7
Market Data ...................................................................................................................................................................8
Market value...............................................................................................................................................................8
Market volume............................................................................................................................................................9
Market Segmentation...................................................................................................................................................10
Category segmentation............................................................................................................................................10
Geography segmentation.........................................................................................................................................11
Market share ............................................................................................................................................................12
Market Outlook.............................................................................................................................................................13
Market value forecast...............................................................................................................................................13
Market volume forecast............................................................................................................................................14
Five Forces Analysis....................................................................................................................................................15
Summary..................................................................................................................................................................15
Buyer power.............................................................................................................................................................16
Supplier power .........................................................................................................................................................17
New entrants............................................................................................................................................................18
Threat of substitutes.................................................................................................................................................19
Degree of rivalry.......................................................................................................................................................20
Leading Companies .....................................................................................................................................................21

EnBW AG.................................................................................................................................................................21
RWE AG...................................................................................................................................................................26
Vattenfall ..................................................................................................................................................................31
EON 35
Macroeconomic Indicators ...........................................................................................................................................39
Country Data............................................................................................................................................................39
Appendix......................................................................................................................................................................41
Methodology.............................................................................................................................................................41
Industry associations................................................................................................................................................42
Related MarketLine research ...................................................................................................................................42

LIST OF TABLES
Table 1: Germany electricity market value: $ billion, 2007–11.......................................................................................8
Table 2: Germany electricity market volume: TWh, 2007–11.........................................................................................9
Table 3: Germany electricity market category segmentation: $ billion, 2011 ...............................................................10
Table 4: Germany electricity market geography segmentation: $ billion, 2011 ............................................................11
Table 5: Germany electricity market share: % share, by volume, 2011 .......................................................................12
Table 6: Germany electricity market value forecast: $ billion, 2011–16 .......................................................................13
Table 7: Germany electricity market volume forecast: TWh, 2011–16.........................................................................14
Table 8: EnBW AG: key facts.......................................................................................................................................21
Table 9: EnBW AG: key financials ($)..........................................................................................................................23
Table 10: EnBW AG: key financials (€)........................................................................................................................23
Table 11: EnBW AG: key financial ratios .....................................................................................................................24
Table 12: RWE AG: key facts.......................................................................................................................................26
Table 13: RWE AG: key financials ($)..........................................................................................................................28
Table 14: RWE AG: key financials (€)..........................................................................................................................28
Table 15: RWE AG: key financial ratios .......................................................................................................................29
Table 16: Vattenfall: key facts ......................................................................................................................................31
Table 17: Vattenfall: key financials ($) .........................................................................................................................32
Table 18: Vattenfall: key financials (SEK) ....................................................................................................................32
Table 19: Vattenfall: key financial ratios.......................................................................................................................33
Table 20: EON: key facts .............................................................................................................................................35
Table 21: EON: key financials ($).................................................................................................................................37
Table 22: EON: key financials (€).................................................................................................................................37
Table 23: EON: key financial ratios..............................................................................................................................37
Table 24: Germany size of population (million), 2007–11 ............................................................................................39
Table 25: Germany gdp (constant 2000 prices, $ billion), 2007–11 .............................................................................39
Table 26: Germany gdp (current prices, $ billion), 2007–11 ........................................................................................39
Table 27: Germany inflation, 2007–11 .........................................................................................................................40
Table 28: Germany consumer price index (absolute), 2007–11...................................................................................40
Table 29: Germany exchange rate, 2007–11...............................................................................................................40

LIST OF FIGURES
Figure 1: Germany electricity market value: $ billion, 2007–11......................................................................................8
Figure 2: Germany electricity market volume: TWh, 2007–11 .......................................................................................9
Figure 3: Germany electricity market category segmentation: % share, by value, 2011 ..............................................10
Figure 4: Germany electricity market geography segmentation: % share, by value, 2011...........................................11
Figure 5: Germany electricity market share: % share, by volume, 2011 ......................................................................12
Figure 6: Germany electricity market value forecast: $ billion, 2011–16 ......................................................................13
Figure 7: Germany electricity market volume forecast: TWh, 2011–16........................................................................14
Figure 8: Forces driving competition in the electricity market in Germany, 2011 .........................................................15
Figure 9: Drivers of buyer power in the electricity market in Germany, 2011 ...............................................................16
Figure 10: Drivers of supplier power in the electricity market in Germany, 2011 .........................................................17
Figure 11: Factors influencing the likelihood of new entrants in the electricity market in Germany, 2011....................18
Figure 12: Factors influencing the threat of substitutes in the electricity market in Germany, 2011.............................19
Figure 13: Drivers of degree of rivalry in the electricity market in Germany, 2011 .......................................................20
Figure 14: EnBW AG: revenues & profitability .............................................................................................................24
Figure 15: EnBW AG: assets & liabilities .....................................................................................................................25
Figure 16: RWE AG: revenues & profitability ...............................................................................................................29
Figure 17: RWE AG: assets & liabilities .......................................................................................................................30
Figure 18: Vattenfall: revenues & profitability...............................................................................................................33
Figure 19: Vattenfall: assets & liabilities.......................................................................................................................34
Figure 20: EON: revenues & profitability......................................................................................................................38
Figure 21: EON: assets & liabilities..............................................................................................................................38

MARKET OVERVIEW
Market definition
The electricity market consists of the sale of electricity to industrial, commercial, household, transportation, and other
end-users, including agricultural.
The volume of the market is calculated as the total volume of electricity consumed (in Terawatt-hours, TWh), and the
market value has been calculated according to average annual electricity prices. Note that 1 TWh is identical to 1 billion
kWh, or 1 million MWh. Market shares are calculated on the basis of retail sales to end-users in all segments. Any
currency conversions used in the creation of this report have been calculated using constant 2011 annual average
exchange rates.
For the purposes of this report, Europe consists of Western Europe and Eastern Europe.
Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain,
Sweden, Switzerland, Turkey, and the United Kingdom.
Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.
Market analysis
The German market has experienced healthy growth in recent years with the exception of 2009 when it declined. The
electricity market is expected to grow further in terms of value with moderate but rather steady growth rates throughout
years up to 2016.
The German electricity market had total revenues of $116.3 billion in 2011, representing a compound annual growth rate
(CAGR) of 2.1% between 2007 and 2011. In comparison, the French market increased with a CAGR of 1.9%, and the
UK market declined with a CARC of -0.1%, over the same period, to reach respective values of $53.6 billion and $62.8
billion in 2011.
Market consumption volumes declined with a compound annual rate of change (CARC) of -0.7% between 2007 and
2011, to reach a total of 531.1 TWh in 2011. The market's volume is expected to rise to 533.2 TWh by the end of 2016,
representing a CAGR of 0.1% for the 2011-2016 period.
The industrial segment was the market's most lucrative in 2011, with total revenues of $49.6 billion, equivalent to 42.6%
of the market's overall value. The residential segment contributed revenues of $43.1 billion in 2011, equating to 37% of
the market's aggregate value.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.2% for the five-year period 2011
- 2016, which is expected to drive the market to a value of $149.9 billion by the end of 2016. Comparatively, the French
and UK markets will grow with CAGRs of 2.5% and 5.8% respectively, over the same period, to reach respective values
of $60.8 billion and $83.3 billion in 2016.

MARKET DATA
Market value
The German electricity market grew by 4% in 2011 to reach a value of $116.3 billion.
The compound annual growth rate of the market in the period 2007–11 was 2.1%.
Table 1: Germany electricity market value: $ billion, 2007–11
Year $ billion € billion % Growth
2007 106.9 76.8
2008 112.9 81.2 5.6%
2009 111.1 79.8 (1.6%)
2010 111.8 80.4 0.7%
2011 116.3 83.6 4.0%
CAGR: 2007–11 2.1%
SOURCE: MARKETLINE M A R K E T L I N E
Figure 1: Germany electricity market value: $ billion, 2007–11

Market volume
The German electricity market shrank by 0.1% in 2011 to reach a volume of 531.1 TWh.
The compound annual rate of change of the market in the period 2007–11 was -0.7%.
Table 2: Germany electricity market volume: TWh, 2007–11
Year TWh % Growth
2007 547.3
2008 544.5 (0.5%)
2009 515.8 (5.3%)
2010 531.4 3.0%
2011 531.1 (0.1%)
CAGR: 2007–11 (0.7%)
Figure 2: Germany electricity market volume: TWh, 2007–11

MARKET SEGMENTATION
Category segmentation
Industrial is the largest segment of the electricity market in Germany, accounting for 42.6% of the market's total value.
The Residential segment accounts for a further 37% of the market.
Table 3: Germany electricity market category segmentation: $ billion, 2011
Category 2011 %
Industrial 49.6 42.6%
Residential 43.1 37.0%
Commercial 19.5 16.8%
Transportation 3.7 3.2%
Other 0.5 0.4%
Total 116.4 100%
Figure 3: Germany electricity market category segmentation: % share, by value, 2011

Geography segmentation
Germany accounts for 15% of the European electricity market value.
Italy accounts for a further 14.2% of the European market.
Table 4: Germany electricity market geography segmentation: $ billion, 2011
Geography 2011 %
Germany 116.3 15.0
Italy 110.6 14.2
United Kingdom 62.8 8.1
France 53.6 6.9
Spain 45.1 5.8
Rest of Europe 389.3 50.1
Total 777.7 100%
Figure 4: Germany electricity market geography segmentation: % share, by value, 2011

Market share
E.ON AG is the leading player in the German electricity market, generating a 19% share of the market's volume.
EnBW AG accounts for a further 12.1% of the market.
Table 5: Germany electricity market share: % share, by volume, 2011
Company % Share
E.ON AG 19.0%
EnBW AG 12.1%
RWE 10.7%
Vattenfall 5.4%
Other 52.8%
Total 100%
Figure 5: Germany electricity market share: % share, by volume, 2011

MARKET OUTLOOK
Market value forecast
In 2016, the German electricity market is forecast to have a value of $149.9 billion, an increase of 28.9% since 2011.
The compound annual growth rate of the market in the period 2011–16 is predicted to be 5.2%.
Table 6: Germany electricity market value forecast: $ billion, 2011–16
Year $ billion € billion % Growth
2011 116.3 83.6 4.0%
2012 125.6 90.3 8.0%
2013 131.7 94.7 4.9%
2014 137.7 99.0 4.6%
2015 143.7 103.3 4.3%
2016 149.9 107.7 4.3%
CAGR: 2011–16 5.2%
Figure 6: Germany electricity market value forecast: $ billion, 2011–16

Market volume forecast
In 2016, the German electricity market is forecast to have a volume of 533.2 TWh, an increase of 0.4% since 2011.
The compound annual growth rate of the market in the period 2011–16 is predicted to be 0.1%.
Table 7: Germany electricity market volume forecast: TWh, 2011–16
Year TWh % Growth
2011 531.1 (0.1%)
2012 527.0 (0.8%)
2013 528.9 0.4%
2014 530.2 0.3%
2015 531.3 0.2%
2016 533.2 0.4%
CAGR: 2011–16 0.1%
Figure 7: Germany electricity market volume forecast: TWh, 2011–16

FIVE FORCES ANALYSIS
The electricity market will be analyzed taking electricity retailers as players. The key buyers will be taken as industrial,
commercial and individual consumers , and suppliers of wholesale electricity or primary energy sources as the key
suppliers.
Summary
Figure 8: Forces driving competition in the electricity market in Germany, 2011
German electricity demand is expected to remain sluggish in the near future – similar to that of other modern
industrialized European countries – due to the lack of economic growth. Rivalry in the German electricity market is
moderate, with four large players dominating.
Since the liberalization of the regional monopolies in 1998, consumers in Germany have been able to freely switch
suppliers. However, retail prices for both domestic and industrial electricity buyers in Germany are among the highest in
Europe. The lack of switching costs for end-users, combined with the recent liberalization of the market and a move
towards greener energy significantly increases opportunities for new companies to enter. Electricity retailers are
challenged by two key substitutes in the German consumer segment: gas and self-generation through equipment such
as solar panels; in the industrial segment, autogeneration is a potential substitute. Current limitations in the scope and
depth of such energy sources cap the extent of this threat, however. Rivalry within the market is moderate with the
market dominated by EnBW, E.ON and RWE. Exit barriers can be high for the majors, as most have power stations in
the country for which buyers would need to be found, and which may amount to considerable sunk costs if built by the
companies concerned. Exit barriers are lower for companies that act as purely as retailers, intermediaries between
wholesalers and consumers, with presence in the generation sector.

Buyer power
Figure 9: Drivers of buyer power in the electricity market in Germany, 2011
In the German electricity market, the residential segment is the most lucrative. However, the industrial and commercial
domains also represent significant areas of operation. After the breakup of the regional monopolies an era of
deregulation was ushered in from 1998 onwards. Deregulation, it was argued by proponents, would serve to benefit
buyers, stimulating investment, expanding coverage, and improving efficiency in the market. The opening up of such
markets to the private sector and the freedom of customers to move between providers, it is maintained, introduces a
level of rivalry that can yield more competitive rates for buyers. Immediately following the move this appeared to be the
case with alternative supplier price rates drastically lower, yet over time this has been reversed. One reason for this
apparent lack of buyer power is the unwillingness of residential buyers to switch their providers, although this right has
been available for more than a decade. With electricity, by nature, being a uniform product there exists minimal
opportunity for intrinsic differentiation and price is paramount. Whilst this, in principle, strengthens the hand of buyers it
should be noted that this new found freedom is accompanied by an inevitable increase in marketing and temporary
incentive schemes by the players who offer such opportunities. As a consequence, billing now reflects this company
cost. The rise of consumer awareness and comparison services constrains this upward pressure yet the heavy
contemporary dependence on electricity is well recognized. With a steady flow of new domestic appliances sustaining
the surge in demand and severe limitations to current substitutes, consumers are reliant on this vital resource. This basic
dependency strengthens the standing of electricity companies as an informal bloc. With the number of electricity
providers falling significantly since deregulation due to a series of mergers and takeovers, the major players dominate
the market. Despite a sharp fall in the price of oil and gas, and access to cheap coal, Germany’s electricity prices are
amongst the highest in Europe. The country’s federal cartel office responded by conducting an investigation into the
electricity producers and the wholesale market. The inquiry found no evidence of market abuse but concluded an
unsatisfactory competitive situation. These developments will continue to shape the strength of buyer power which,
currently, is no more than moderate.

Supplier power
Figure 10: Drivers of supplier power in the electricity market in Germany, 2011
Major suppliers to the German retail electricity suppliers are electricity generators, wholesale electricity suppliers, and
providers of the electricity transmission services. Although it is unlikely that pure retailers of electricity would integrate
backwards into electricity generation and the wholesale electricity market (the capital requirements for the former in
particular are large), several major energy companies including RWE have vertically-integrated operations, from
electricity generation through to the sale of electricity to end-users. For players with this business model, a small number
of large suppliers of primary energy, such as coal and nuclear fuel, are important. Although generation companies decide
for themselves what mix of primary energy sources to use, switching completely from one fuel to another can only be
achieved over a long timescale. After the Fukushima disaster in March 2011, the German government changed its
politics on nuclear energy and announced it would begin terminating all nuclear plants in the country. This resulted in the
closure of eight facilities in 2011 and, as a result of the decommissioning, 8.3 gigawatts (GW) of capacity was removed.
This decrease in supply of electricity was compensated by renewable energy. The modification or development of
appropriate infrastructure is just one of the major programs necessary for this. Overall, supplier power is moderate.

New entrants
Figure 11: Factors influencing the likelihood of new entrants in the electricity market in Germany,
2011
With end users now having the freedom to switch providers, regulatory obstacles to market entry are reduced. In
addition, the effective absence of product differentiation makes price competition central. By undercutting existing
players, newcomers may be able to encourage sufficient customers to switch, and so establish a profitable position in the
market. However, with the dominant players slowly becoming more entrenched, dislodging them would be difficult. Fixed
costs and capital outlay required depend strongly on the business model: a company acting purely as a retailer will incur
lower costs than one aiming to acquire or build generation or distribution assets. With future not so optimistic market
growth, potential entrants may not be tempted to enter the market. The threat of new entrants, overall, is moderate.

Threat of substitutes
Figure 12: Factors influencing the threat of substitutes in the electricity market in Germany, 2011
Electricity retailers are challenged on two fronts within the residential segment: gas and self-generation
(microgeneration), through devices such as solar panels, form two alternatives to the use of electricity. Gas poses a
substantial challenge to electricity with regards to cooking and heating, yet electricity is essential for lighting and the vast
majority of modern domestic appliances. Many large electric utilities defend themselves against this challenge by also
retailing gas. The government supports self-generation by allowing micro-generated electricity to be sold into the national
grid, and Germany has one of the largest solar panel microgeneration capacities in the world. The country publicly aims
to derive up to 30% of its electricity from renewable sources by 2020 and whilst this may not be met, the project is likely
to spark substantial investment in the coming years. This may facilitate market entry for new players, allowing them to
edge in and erode the dominant position of the current major players. Both of these substitutes can impose high
switching costs (replacing an electric cooker with a gas cooker, or installing a wind turbine for example), and with gas
and electricity prices often unpredictable for the end-user, their price advantages are not completely clear-cut. With the
emergence of environmental awareness and its rise as a political force, microgeneration could become increasingly
popular and may eventually occupy a central position in mainstream use. Overall, the threat of substitutes is moderate.

Degree of rivalry
Figure 13: Drivers of degree of rivalry in the electricity market in Germany, 2011
Despite expectations that the liberalization of the regional monopolies would introduce an age of fruitful competition,
since 1997 the number of major electricity suppliers in Germany has narrowed from eight to four. A series of mergers
and takeovers have left E.ON and RWE deeply entrenched, controlling the majority of the market between them. There
are also numerous regional utilities, but their aggregate market share is small. The European Commission has
repeatedly criticized the extent of vertical integration whereby ownership of the distribution networks allows major
generators to block access to independent producers and stifle competition. Consumers can, nevertheless, now switch
quite easily between suppliers of a commodity that is essentially undifferentiated. Exit barriers can be high for the majors,
as most have power stations in the country for which buyers would need to be found, and which may represent
considerable sunk costs if built by the companies concerned. The lack of fixed assets for companies involved solely in
retail supply, however, reduces their exit costs and can offer a route away from head-to-head competition. The market is
highly important for virtually all its players, although diversification (into gas supply or other geographical markets) is a
common strategy for decreasing dependence on the German electricity market alone. Slow but steady growth eases the
pressure to compete aggressively, allowing for a degree of mutual expansion. There is strong level of rivalry overall.

LEADING COMPANIES
EnBW AG
Table 8: EnBW AG: key facts
Head office: Durlacher Allee 93, Karlsruhe 76131, DEU
Telephone: 49 721 6300
Fax: 49 721 6313 143
Website: www.enbw.com
Financial year-end: December
Ticker: EBK
Stock exchange: Frankfurt
SOURCE: COMPANY WEBSITE M A R K E T L I N E
EnBW is a Germany-based company focused on providing electricity, gas, and environmental services. It operates in
Germany and other parts of Central and Eastern Europe. The company's foreign operations include shareholdings in
Swiss, Czech, Hungarian, Austrian, and Polish companies. EnBW supplies and advises some 5.5 million customers and
achieved energy sales of 213.1 billion kilowatt hours (kWh) in FY2011.
EnBW operates through four business segments: electricity grid and sales; electricity generation and trading; gas; and
energy and environmental services.
EnBW covers all stages of the electricity value chain via its two segments electricity grid and sales and electricity
generation and trading.
The electricity grid and sales segment operates through the subsidiaries EnBW Transportnetze, EnBW Regional, EnBW
Vertrieb, and Watt Deutschland.
EnBW Transportnetze (TNG) offers all market participants grid access and use. Customers and partners of this company
include more than 200 electricity dealers and power station and distribution network operators. As part of grid
management, TNG monitors and controls the grid, checks grid safety, balances capacity fluctuations, and performs the
work necessary to eliminate any disruptions.
EnBW Regional (REG) is one of the largest distribution network operators in Baden-Wurttemberg where it distributes
electricity through its own distribution grids. In this function, it is responsible for granting other companies access to
EnBW's grids and for distribution of electricity. EnBW's transmission and distribution grids have a total length of around
153,166 kilometers (km).
REG operates EnBW's high, medium, and low voltage networks (110 kV, 30/20/10 kV, and 0.4 kV). In FY2011, circuit
length of the distribution network of EnBW was 8,552 km of high voltage (110 kV), 45,876 km of medium voltage
(30/20/10 kV), and 95,090 km of low voltage (0.4 kV). REG operates all grids and facilities on behalf of EnBW Gasnetz
as grid operator. It also operates the gas-related facilities of EnBW Gas and is responsible for relations to municipalities
as well as managing EnBW's franchise agreements and its business relations to municipal utilities in Baden-
Wurttemberg. Additionally, REG provides grid-related services to municipalities and municipal utilities in Baden-
Wurttemberg.
The sales function was restructured in FY2010 to provide even more market power. EnBW Vertrieb (EVG), formerly
EnBW Vertriebs-und Servicegesellschaft, acts as the central sales company. EVG coordinates major sales activities
within the company for all brands. EVG itself sells electricity, gas, district heating, as well as water and energy-related
services for industrial, commercial and retail customers, municipal utilities, and municipalities, under the EnBW brand.

The sales-related services provided by the former company of EnBW, such as invoicing, receivables management,
customer contact management, and handling changes of provider, has been transferred to a new entity, EnBW
Operations (EOG). All processing activities were concentrated at EVG, including those relating to the operation of
measuring points and measuring services.
Watt Deutschland specializes in sales to the customer groups of small and medium enterprises (SMEs) throughout
Germany under the Watt brand. Watt Deutschland's portfolio of services extends to energy and system services.
EnBW's generation portfolio, which includes partly owned power stations and long-term procurement agreements,
totaled 13,402 megawatts (MW) as of FY2011; of which 3,333 MW was generated from nuclear plants, 6,986 MW from
conventional power stations, 1,299 from storage/pumped storage power stations using the natural flow of water, 545 MW
from pumped storage power stations that do not use the natural flow of water, 926 MW from run-of-the-river and storage
power stations, and 313 MW from other renewable energies.
At the next stage of the value added chain, EnBW Trading (ETG), a business unit of EnBW, is engaged in the area of
trading and procurement. It represents an interface between generation, trading, and sales. This entity is tasked with
trading physical and financial products (fuel procurement and logistics, emission allowance management, and power
station deployment planning and management of EnBW's generation portfolio) on the wholesale markets for electricity,
primary energy sources (gas, coal, and oil), and carbon dioxide (CO2) allowances.
The gas segment operates in the midstream and downstream stages of the value added chain. The midstream business
includes import agreements, infrastructure, gas storage and trading, and portfolio management. The downstream
business covers gas transmission, distribution, and sales. The segment operates through subsidiaries EnBW Gas
Midstream, Gasversorgung Suddeutschland, GVS Netz, EnBW Gas, and EnBW Gasnetz.
EnBW Gas Midstream employs import agreements and investments in the necessary infrastructure to safeguard the
EnBW group's access to gas in the medium to long term. Gasversorgung Suddeutschland (GVS) is engaged in
purchase, sale, storage, and transmission of gas. It supplies natural gas to municipal utilities, regional gas suppliers,
industrial customers, and power stations both in Germany and abroad.
GVS Netz acts as a grid operator. In collaboration with Eni Gas Transport Deutschland, GVS Netz offers its customers a
range of gas transmission services in its own market territory. With approximately 2,000 km of high-pressure piping, it
supplies to more than two-thirds of towns and communities in Baden-Wurttemberg either directly or indirectly with natural
gas. In addition, gas is transported, and in some cases supplied, to Liechtenstein, Vorarlberg, and the German-speaking
regions of Switzerland. GVS Netz has storage capacities to manage its portfolio.
EnBW Gas operates in the field of gas supplies to retail customers in Baden-Wurttemberg and industrial customers
throughout Germany. EnBW Gasnetz operates the transmission and distribution network and performs all the tasks
required of a gas distribution network operator required by the German Energy Industry Act. The high, medium, and low
pressure grids have a total length of 4,989 kms.
Through its energy and environmental services segment, EnBW provides grid and energy-related services (essentially
contracting solutions), thermal and non-thermal waste disposal, as well as water supply services. The segment operates
through subsidiaries EnBW Energy Solutions, EnBW Systeme Infrastruktur Support, EnBW Kraftwerke, Stadtwerke
Dusseldorf, EnBW Regional, and RBS wave.
EnBW Energy Solutions provides energy-related services on the basis of contracting models. As a partner to industry, it
plans, finances, and operates power generating plants and media infrastructures besides supplying its customers with
usable energy such as steam, cooling, compressed air, and the electricity it generates itself. EnBW Systeme Infrastruktur
Support provides internal support services within EnBW with extensive consulting and service functions.

The EnBW activities in the field of waste disposal are operated by EnBW Kraftwerke and Stadtwerke Dusseldorf and
their subsidiaries. In total, EnBW has thermal disposal capacities of its own of around 1.3 million per annum at the
residual waste CHP station in Stuttgart-Munster and the waste incineration plant of Stadtwerke Dusseldorf. The energy
and environmental services segment also includes water supplies in Baden-Wurttemberg as well as certain areas of
Hesse and Bavaria. Services related to the extraction, treatment, storage, and distribution of water are operated by
EnBW Regional and RBS wave.
Key Metrics
The company recorded revenues of $26,140 million in the fiscal year ending December 2011, an increase of 2.1%
compared to fiscal 2010. Its net loss was $1,135 million in fiscal 2011, compared to a net income of $1,621 million in the
preceding year.
Table 9: EnBW AG: key financials ($)
$ million 2007 2008 2009 2010 2011
Revenues 20,467.4 22,684.2 23,007.1 25,606.8 26,140.4
Net income (loss) 2,106.3 1,252.9 1,146.9 1,621.5 (1,135.1)
Total assets 39,530.2 45,805.6 48,272.5 49,025.9 49,834.0
Total liabilities 31,180.6 38,038.1 39,358.1 38,427.4 41,301.2
Employees 20,499 20,357 20,914 20,450 20,959
SOURCE: COMPANY FILINGS M A R K E T L I N E
Table 10: EnBW AG: key financials (€)
€ million 2007 2008 2009 2010 2011
Revenues 14,712.0 16,305.4 16,537.5 18,406.2 18,789.7
Net income (loss) 1,514.0 900.6 824.4 1,165.5 (815.9)
Total assets 28,414.3 32,925.1 34,698.3 35,239.8 35,820.7

Table 11: EnBW AG: key financial ratios
Ratio 2007 2008 2009 2010 2011
Profit margin 10.3% 5.5% 5.0% 6.3% (4.3%)
Revenue growth 11.3% 10.8% 1.4% 11.3% 2.1%
Asset growth 0.9% 15.9% 5.4% 1.6% 1.6%
Liabilities growth 7.5% 22.0% 3.5% (2.4%) 7.5%
Debt/asset ratio 78.9% 83.0% 81.5% 78.4% 82.9%
Return on assets 5.4% 2.9% 2.4% 3.3% (2.3%)
Revenue per employee $998,461 $1,114,319 $1,100,081 $1,252,168 $1,247,215
Profit per employee $102,751 $61,547 $54,839 $79,289 ($54,157)
Figure 14: EnBW AG: revenues & profitability

Figure 15: EnBW AG: assets & liabilities

RWE AG
Table 12: RWE AG: key facts
Head office: Opernplatz 1, 45128 Essen, DEU
Telephone: 49 201 12 00
Fax: 49 201 12 15199
Website: www.rwe.com
Ticker: RWEOTC, RWEOY
Stock exchange: Frankfurt, Bulletin
RWE is the management holding company of the RWE group, which comprises various utility companies with core
competencies in the energy and environmental sectors. It is one of Europe's leading electricity and gas companies.
RWE's power generation, sales, and trading markets are in Germany, the UK, the Netherlands, Belgium, Poland,
Hungary, the Czech Republic, Turkey, and Slovakia.
RWE operates through the following seven business divisions: Germany; the United Kingdom; the Netherlands/Belgium;
trading/gas midstream; Central Eastern and South Eastern Europe; upstream gas and oil; and renewables. RWE
supplies more than 17 million customers with electricity and approximately eight million customers with gas. In FY2011,
RWE sold 294.6 billion kilowatt hours (kWh) of electricity and 322.2 billion kWh of gas.
The Germany business division consists of two business areas, namely, generation, and sales and distribution networks.
RWE carries its German operations through RWE Power, RWE Deutschland, RWE Vertrieb, RWE Effizienz, envia
Mitteldeutsche Energie, KEVAG, Lechwerke, Suwag Energie, VSE, and Kelag (Osterreich).
In FY2011, RWE Power had a total installed capacity of 31,285 megawatts (MW) and contributed 152 billion kWh of
RWE's total in-house electricity production. This includes electricity generated from power plants not owned by RWE that
it can deploy at its discretion on the basis of long-term agreements. In FY2011, RWE Power sold 117.3 billion kWh of
electricity to external customers, out of which it sold 25.5 billion kWh to its private and commercial customers, 31.4 billion
KWh to its industrial and corporate customers, and 60.4 billion kWh to its distributors. In FY2011, the Germany division
sold 83.3 billion kWh of gas to its customers, out of which it sold 27.5 billion kWh of gas to its private and commercial
customers, and 24 billion kWh of gas to industrial and corporate customers. At the end of FY2011, the Germany division
provided gas to 1.3 million customers.
The German sales and distribution network businesses were previously held by RWE Rheinland Westfalen Netz.
Operating under the new name RWE Deutschland since January 2011, this is the company to which RWE Vertrieb
(including eprimo, RWE Energiedienstleistungen, and RWE Aqua), the regional companies, RWE Effizienz, and the
investments previously held by RWE Rheinland Westfalen Netz have been grouped. The sales and distribution networks
business is also carried out by VSE in Germany, which supplies electricity and gas to its customers in the western region
of the country.
The sales and distribution networks business area of Germany division also includes the German regional utilities, which
operate their own electricity generation facilities to a small extent, besides handling the network and end-customer
business. These companies include RWE Effizienz among others. RWE Effizienz is a provider of energy efficiency
services to its customers. RWE E-Mobility, a subsidiary of RWE, provides charging services to electric motors of its
customers. This also applies to several non-German activities of RWE: RWE's minority interest in Austrian-based Kelag
(engaged in distributing heat and electricity) and Luxembourg-based Enovos as well as RWE's water business in Zagreb,
Croatia, which is run by RWE Aqua.

Other companies operating under the sales and distribution business area of the Germany division are envia
Mitteldeutsche Energie (enviaM), KEVAG, Lechwerke, and Suwag Energie. enviaM is a provider of electricity and gas.
KEVAG is engaged in providing power and transportation services. Lechwerke (LEW) is engaged in distributing
electricity. Suwag Energie is engaged in distributing electricity, gas, and heat.
The United Kingdom (UK) division of RWE comprises RWE npower, which encompasses RWE's entire UK generation
and supply business (with the exception of electricity production from renewables, which is overseen by RWE Innogy).
RWE npower is an integrated energy company in the UK. It supplies gas and electricity through its retail business,
npower. RWE npower operates its power stations under the npower retail brand. RWE npower is responsible for power
generation, as well as electricity and gas supply in the UK. In FY2011, the company had an installed capacity of 11,468
MW. In FY2011, RWE npower sold 50.3 billion kWh of electricity to its customers, out of which it sold 17.4 billion kWh to
its private and commercial customers and 32.9 billion kWh to industrial and corporate customers. In FY2011, the UK
division sold 40.2 billion kWh of gas to its customers, out of which it sold 38 billion kWh of gas to its private and
commercial customers, and 2.2 billion kWh of gas to industrial and corporate customers. At the end of FY2011, the UK
division provided gas to 2.4 million customers.
The UK operations also include RWE IT UK. It is the information technology (IT) service provider to the wider RWE
group. In the UK, its customers include RWE npower, RWE supply and trading, and Innogy.
The Netherlands/Belgium division of RWE comprises the operations of Essent. The operations of Essent include RWE's
former Dutch energy business, RWE Energy Nederland. Essent is engaged in generating, trading, transmitting, and
supplying electricity. It also supplies gas and central heating in the Netherlands. In FY2011, the Netherlands/Belgium
division generated six billion kWh of electricity and sold 21 billion kWh of electricity to its customers, out of which it sold
10.7 billion kWh to its private and commercial customers and 10.3 billion kWh to industrial and corporate customers. At
the end of FY2011, the Netherlands/Belgium division served 2.2 million electricity customers in the Netherlands and
Belgium. In FY2011, the Netherlands/Belgium division sold 87.7 billion kWh of gas to its customers, out of which it sold
36.9 billion kWh of gas to its private and commercial customers, and 50.8 billion kWh of gas to industrial and corporate
customers. At the end of FY2011, the Netherlands/Belgium division provided gas to two million customers.
The trading/gas midstream division of RWE consists of the business of RWE Supply & Trading. In addition to energy
trading and the gas midstream activities, this division subsumes the sales business with its major German industrial and
corporate customers. RWE Supply & Trading was created by combining RWE Trading and RWE Gas Midstream
businesses. The division is responsible for the commercial optimization of all of RWE's non-regulated midstream gas
activities. These consist of the purchase, transmission, and storage of gas as well as the liquefied natural gas (LNG)
business. In addition, as Europe's largest energy trader, the division is RWE's hub for tradable commodities such as
electricity, gas, coal, oil, and carbon dioxide (CO2) emissions certificates. RWE Supply & Trading operates trading floors
of London, Swindon, Den Bosch, and Geneva.
RWE's Central Eastern and South Eastern Europe division covers its companies in Poland, Hungary, the Czech
Republic, and Slovakia. In Poland, RWE Polska is the operating company of RWE, and electricity supply and electricity
distribution is under its umbrella. In Hungary, RWE Energy Hungaria is the regional operating company of RWE that
looks after the electricity operations of RWE in the country. Also in Hungary, RWE concentrates on lignite-based
electricity generation, which is managed by its subsidiary Matra. Through minority interests, RWE is also active in gas
sales and water supply in Hungary. In the Czech Republic, RWE's main activity is gas and operates through RWE
Transgas and RWE Transgas Net. RWE's local operations encompass regional supply, distribution, supra-regional
transmission, transit, and storage. In Slovakia, RWE is active in the electricity network and electricity end-customer
businesses through its minority interest in VSE and in the gas supply sector through RWE Gas Slovensko. The company
is also building a gas-fired power station in Turkey.

RWE operates the upstream gas and oil business division through RWE Dea. RWE Dea produces gas and oil, focusing
on Europe and northern Africa. RWE Dea is an international operator in the field of exploration and production of natural
gas and crude oil. It operates production facilities in Germany, the UK, Norway, Denmark, and Egypt. It also holds
exploration licenses in Algeria, Libya, Mauretania, Ireland, and Poland. In Germany, RWE Dea also operates high-
volume underground storage facilities for natural gas. In FY2011, RWE Dea sold 17.7 billion kWh of gas to its customers,
out of which it sold 1.7 billion kWh of gas to its industrial and corporate customers, and 16 billion kWh of gas to
distributors.
The renewables division of RWE encompasses all the activities of RWE Innogy, which specializes in electricity
generation from renewable sources of energy. RWE Innogy is engaged in pooling renewable energy activities. It mainly
consists of onshore and offshore wind farms in Europe as well as hydroelectric power plants and biomass projects. RWE
Innogy is in charge of all of RWE's renewable activities. The division focuses on wind, hydropower, and biomass and had
an installed capacity of 2,430 MW (including small shares of other energy sources) in FY2011. For the same period,
RWE Innogy generated 6.4 billion kWh of electricity.
Besides the above-mentioned seven divisions, RWE also operates through "other/consolidation" division. This division
covers other activities not allocable to the divisions presented separately, consisting of Amprion, RWE Service, RWE
Consulting, RWE Pensionsfonds, and RWE TechnologyGermany.
Key Metrics
The company recorded revenues of $68,820 million in the fiscal year ending December 2011, a decrease of 2.9%
compared to fiscal 2010. Its net income was $2,513 million in fiscal 2011, compared to a net income of $4,602 million in
the preceding year.
Table 13: RWE AG: key financials ($)
$ million 2007 2008 2009 2010 2011
Revenues 59,136.1 66,210.4 64,553.4 70,869.5 68,820.3
Net income (loss) 3,699.2 3,558.7 4,968.0 4,602.1 2,512.5
Total assets 116,054.5 129,980.5 129,991.7 129,489.4 128,903.7
Employees 63,439 65,908 70,726 70,856 72,058
Table 14: RWE AG: key financials (€)
€ million 2007 2008 2009 2010 2011
Revenues 42,507.0 47,592.0 46,401.0 50,941.0 49,468.0
Net income (loss) 2,659.0 2,558.0 3,571.0 3,308.0 1,806.0
Total assets 83,420.0 93,430.0 93,438.0 93,077.0 92,656.0

Table 15: RWE AG: key financial ratios
Ratio 2007 2008 2009 2010 2011
Profit margin 6.3% 5.4% 7.7% 6.5% 3.7%
Revenue growth (0.1%) 12.0% (2.5%) 9.8% (2.9%)
Asset growth (10.7%) 12.0% 0.0% (0.4%) (0.5%)
Liabilities growth (13.3%) 16.8% (0.7%) (5.1%) (0.1%)
Debt/asset ratio 82.4% 85.9% 85.3% 81.3% 81.6%
Return on assets 3.0% 2.9% 3.8% 3.5% 1.9%
Revenue per employee $932,172 $1,004,587 $912,725 $1,000,191 $955,068
Profit per employee $58,311 $53,995 $70,243 $64,950 $34,868
Figure 16: RWE AG: revenues & profitability

Figure 17: RWE AG: assets & liabilities

Vattenfall
Table 16: Vattenfall: key facts
Head office: SE 162 87 Stockholm, SWE
Telephone: 46 8 739 50 00
Fax: 46 8 17 85 06
Local office: Chausseestrasse 23, DE-10115 Berlin, DEU
Telephone: 49 30 81 82 22
Fax: 49 30 81 82 39 50
Website: www.vattenfall.com
Vattenfall is Europe's fifth largest generator of electricity and the largest supplier of heat. Vattenfall operates in all parts of
the electricity value chain: generation, distribution, and sales. It is active in lignite mining and electricity trading; and also
generates, distributes, and sells heat. The company is wholly-owned by the Swedish government. Vattenfall has
operations in Sweden, Finland, Germany, the Netherlands, Poland, Norway, Denmark, Belgium, France, and the UK.
In FY2011, Vattenfall operated through four business segments: distribution and sales; generation; renewables; and
other. The business segments are organized into business divisions. The distribution and sales segment consists of the
distribution and sales business division. The generation segment consists of three business divisions: asset
development, production, and asset optimization and trading; and the renewables segment consists of the renewables
business division.
The distribution and sales segment is Vattenfall's interface towards the end-customer market and includes the unbundled
and regulated electricity distribution business. It is engaged in electricity sales and heat businesses, the regulated
electricity distribution business, and other downstream businesses. The segment is responsible for relationships with all
of Vattenfall's end customers. The segment distributes and sells electricity and heat to industrial customers as well as
private households and conducts gas production and sales. It operates in Sweden, Denmark, Finland, Norway,
Germany, France, the Netherlands, Belgium, and Poland. Vattenfall has a total of 13 million customers, including 4.5
million network customers, and strong market positions primarily in Sweden and the Netherlands. It has two million gas
customers and delivered 53.8 terawatt hours (TWh) of gas in FY2011. The company delivered 103.5 TWh of electricity to
business customers and resellers in FY2011. Vattenfall is also a leading provider of district heating in Germany and one
of the five largest in Sweden, the Netherlands, and Denmark.
The generation segment is engaged in the development and building of production assets, generation of electricity and
heat, and sales of electricity to the wholesale energy markets. Vattenfall holds number one position within electricity
generation in Sweden, and number three position in the Netherlands and Germany. Vattenfall is also one of Germany’s
largest suppliers of district heating. The company owns and operates diverse power generating facilities. Its generation
portfolio includes nuclear, fossil fuel, hydroelectric, and others, including wind power, biomass, and waste. For FY2011,
Vattenfall's electricity generation consisted of fossil based power (51%), nuclear power (25%), hydro power (21%), and
balance of the generation (3%) was through wind power, biomass, and waste based. In FY2011, a total of 166.7 TWh of
electricity were generated.
The segment's asset development business division is responsible for project development and execution of new build
generation projects in electricity, large modification projects in thermal power and heat, and infrastructure, nuclear power,
and hydro power. It is also responsible for the company's research and development (R&D) activities and the
engineering consultancy business.

The production business division operates Vattenfall's lignite mining and power generation assets (including hydro power
but excluding other renewable generation assets). The division also operates Vattenfall's combined heat and power
(CHP) plants in Germany, Denmark, and the Netherlands. Its asset optimization and trading business division is
responsible for optimizing the dispatch of all of Vattenfall's generation assets and hedges the production output of those
assets for maximum profitability within a given risk mandate. This business division also conducts proprietary trading
business under defined risk mandates.
The renewables segment is involved in asset development and operation and maintenance of Vattenfall's renewable
energy operations, primarily in wind power and upstream biomass. The segment's operations are conducted in Sweden,
Denmark, Germany, the Netherlands, Belgium, Poland, the UK, and Liberia. It operates about 900 wind power turbines
in Sweden, Denmark, Germany, Poland, the Netherlands, Belgium, and the UK; and has more than 40 heat and power
plants fuelled in full or in part by biomass. The world's largest offshore wind farm, Thanet Wind Farm off the coast of the
UK, came into operation in September 2010.
The others segment comprises of all staff functions including treasury activities and shared service centers. The Dutch
company Nuon Exploration and Production, which was divested during the second quarter of 2011, and the German
transmission business, which was divested in May 2010, are reported under this segment.
Key Metrics
The company recorded revenues of $27,907 million in the fiscal year ending December 2011, a decrease of 15.2%
compared to fiscal 2010. Its net income was $1,606 million in fiscal 2011, compared to a net income of $2,032 million in
the preceding year.
Table 17: Vattenfall: key financials ($)
$ million 2007 2008 2009 2010 2011
Revenues 22,141.6 25,364.8 31,662.9 32,921.6 27,906.8
Net income (loss) 3,188.7 2,738.1 2,073.0 2,032.4 1,605.6
Total assets 52,138.2 68,723.0 92,816.3 83,460.3 80,859.2
Employees 34,248 34,588 42,078 40,363 37,679
Table 18: Vattenfall: key financials (SEK)
SEK million 2007 2008 2009 2010 2011
Revenues 143,639.0 164,549.0 205,407.0 213,572.0 181,040.0
Net income (loss) 20,686.0 17,763.0 13,448.0 13,185.0 10,416.0
Total assets 338,236.0 445,827.0 602,127.0 541,432.0 524,558.0

Table 19: Vattenfall: key financial ratios
Ratio 2007 2008 2009 2010 2011
Profit margin 14.4% 10.8% 6.5% 6.2% 5.8%
Revenue growth (1.5%) 14.6% 24.8% 4.0% (15.2%)
Asset growth 4.7% 31.8% 35.1% (10.1%) (3.1%)
Liabilities growth (0.6%) 42.4% 50.8% (11.3%) (5.4%)
Debt/asset ratio 63.3% 68.4% 76.3% 75.3% 73.5%
Return on assets 6.3% 4.5% 2.6% 2.3% 2.0%
Revenue per employee $646,507 $733,341 $752,482 $815,637 $740,647
Profit per employee $93,106 $79,164 $49,265 $50,354 $42,613
Figure 18: Vattenfall: revenues & profitability

Figure 19: Vattenfall: assets & liabilities

EON
Table 20: EON: key facts
Head office: E.ON-Platz 1, Dusseldorf 40479, DEU
Telephone: 49 211 4579 0
Fax: 49 211 4579 501
Website: www.eon.com
Ticker: EOAN
Stock exchange: Frankfurt
E.ON is a Germany-based public utility company engaged in the generation, transmission, and distribution of electricity.
It is also engaged in the transmission, storage, and sale of natural gas. The company operates in Europe as well as in
North America.
As of FY2011, E.ON segmented its operations into global units (by function) and regional units (by country). E.ON has
five global units: conventional generation; renewables generation; new build and technology; global gas; and trading.
The twelve regional units are Germany, the UK, Sweden, Italy, Spain, France, the Netherlands, Hungary, Czech
Republic, Slovakia, Romania, and Bulgaria. Support functions like IT, procurement, and business processes are led
centrally by the company management. However, the company reports its revenues on the basis of six market units:
trading; gas; generation; renewable; Germany; Russia; and other European countries.
The conventional generation global unit oversees and coordinates the operations of E.ON's generation portfolio in
Europe. It groups the company's power plants into four fleets by fuel type and manages these fleets across national
boundaries. The company has major asset positions in Germany, the UK, Sweden, Italy, Spain, France, and the Benelux
countries.
The renewables generation global unit plays a key role in expanding renewables capacity across Europe and North
America. It currently has a capacity of over eight gigawatts (GW) of renewable energy. The company operates in the
renewable sector through its subsidiary E.ON Climate and Renewables. It has a diverse fuel mix consisting of onshore
and offshore wind, biomass, photovoltaic (PV), and concentrated solar power (CSP).
E.ON's new build and technology global unit brings together the company's project-management and engineering
expertise to support the construction of new power plants and the operation of existing plants across E.ON. It also
oversees the company's entire research and development effort. The unit is headquartered in Gelsenkirchen (in
Germany) and is also located in Ratcliffe (the UK) and Hanover, Hamburg, Munich, Berlin (all in Germany), and
Rotterdam (The Netherlands). This unit provides support to the E.ON group as it expands its program to include more
renewable and nuclear energy.
The global gas unit operates along the entire gas value chain. It has a growing exploration and production business and
is also active in the global liquefied natural gas (LNG) business. It is also engaged in gas storage in Germany, Austria,
Hungary, and the UK; and in gas transmission in Germany.
The trading global unit buys and sells electricity, natural gas, oil, coal, freight, biomass, and carbon allowances. In
addition, the unit manages and develops assets at several stages of the gas value chain, including pipelines, long-term
supply contracts, and storage facilities.

The twelve regional units manage the company's national sales operations, regional energy networks, and distributed-
generation businesses in Europe. They are also close partners of the global units operating in their respective region, for
which they provide a broad range of important functions, such as human resource management and accounting. In
FY2011, the company was active in the Germany, the UK, Sweden, Italy, Spain, France, the Netherlands, Hungary,
Czech Republic, Slovakia, Romania, and Bulgaria.
The Germany regional unit is responsible for power and gas distribution, energy sales, and distributed generation in
Germany. It also serves as an important partner of the company's global units, particularly the generation unit. E.ON
Vertrieb Deutschland (E.ON Sales Germany) manages the company's energy sales business in Germany for all
customer segments, from residential to industrial. The company operates a total of 455,000 kilometers (km) of power
lines and 65,000 km of gas pipelines, which deliver energy safely and reliably to about nine million people across a large
area of Germany.
The UK regional unit through its retail business, Energy Solutions, supplies energy to homes as well as small-medium-
enterprises and industrial customers across the country. It has around eight million electricity and gas customer
accounts. It also offers maintenance and consulting services for energy efficiency and is partnering a number of UK cities
to help them reduce their carbon footprint.
The Sweden regional unit supplies to a total of about one million customer accounts, mainly in south and east-central
Sweden. It markets power, gas, and heat nationwide and provides a full range of energy services. The unit also has
responsibility for E.ON's businesses in Finland, Denmark, and Norway.
The Italy regional unit operates through its lead company E.ON Italia. The Spain regional unit is engaged primarily in
power distribution and retail. The France regional unit sells power and gas to industrial and wholesale customers. This
unit also plays a key role in supporting the generation and renewables units in the operation and development of the
company's conventional and wind, solar, and hydro capacity in France.
The Netherlands regional unit markets power and gas to residential, business, and industrial customers in the
Netherlands and Belgium. The Hungary regional unit of E.ON is primarily engaged in power wholesaling and power and
gas distribution and retail. The unit supplies energy to about three million customers (2.5 million power and 0.5 million
gas).
The company's Czech regional unit operates power and gas business and has 1.4 million electricity customers and
110,000 gas customers. The Slovakia regional unit is active in the Slovak electricity market. It operates power
distribution network and provides energy services to all customers segments, from residential to industrial.
The Romania regional unit is engaged in the downstream power and gas business and serves a total of 2.7 million
customers (1.3 million gas and 1.4 million power). E.ON's Bulgaria regional unit delivers electricity to 1.1 million
customers in northeast Bulgaria.
Russia is a special focus country for E.ON, where its business centers on power generation. This business is not
integrated into the company's global or regional units because of its geographic location and because Russia's power
system is not part of Europe's integrated grid. In Russia E.ON is engaged in power generation, power sales, and
wholesale marketing with a diverse portfolio of gas-fired and coal-fired power stations with a total capacity of 10.3
gigawatts (GW). The company's operations located in several key industrial regions in Russia: Central Russia, Ural, and
Siberia.
In addition, through E.ON International Energy, the company works with local partners to develop renewable-source and
conventional generating capacity in attractive and fast-growing regions outside Europe.
As of January 2012, two new global units were added: optimization and trading and exploration and production.
The exploration and production segment is active in four focus regions: the UK North Sea, the Norwegian North Sea,
Russia, and North Africa.

Key Metrics
The company recorded revenues of $157,864 million in the fiscal year ending December 2011, an increase of 22.2%
compared to fiscal 2010. Its net loss was $3,107 million in fiscal 2011, compared to a net income of $8,738 million in the
preceding year.
Table 21: EON: key financials ($)
$ million 2007 2008 2009 2010 2011
Revenues 95,619.1 120,691.4 111,260.4 129,191.7 157,864.5
Net income (loss) 10,745.7 2,231.5 12,060.4 8,738.2 (3,106.6)
Total assets 191,004.5 218,174.7 212,317.8 212,689.2 212,676.7
Employees 83,434 93,538 88,227 85,105 78,889
Table 22: EON: key financials (€)
€ million 2007 2008 2009 2010 2011
Revenues 68,731.0 86,753.0 79,974.0 92,863.0 113,473.0
Net income (loss) 7,724.0 1,604.0 8,669.0 6,281.0 (2,233.0)
Total assets 137,294.0 156,824.0 152,614.0 152,881.0 152,872.0
Table 23: EON: key financial ratios
Ratio 2007 2008 2009 2010 2011
Profit margin 11.2% 1.8% 10.8% 6.8% (2.0%)
Revenue growth 7.2% 26.2% (7.8%) 16.1% 22.2%
Asset growth 7.6% 14.2% (2.7%) 0.2% 0.0%
Liabilities growth 7.6% 44.1% (8.2%) (1.3%) 5.6%
Debt/asset ratio 59.8% 75.5% 71.2% 70.2% 74.1%
Return on assets 5.8% 1.1% 5.6% 4.1% (1.5%)
Revenue per employee $1,146,045 $1,290,293 $1,261,070 $1,518,027 $2,001,096
Profit per employee $128,793 $23,857 $136,697 $102,675 ($39,379)

Figure 20: EON: revenues & profitability
Figure 21: EON: assets & liabilities

MACROECONOMIC INDICATORS
Country Data
Table 24: Germany size of population (million), 2007–11
Year Population (million) % Growth
2007 82.2 (0.1%)
2008 82.0 (0.3%)
2009 81.8 (0.2%)
2010 81.8 (0.1%)
2011 81.6 (0.2%)
Table 25: Germany gdp (constant 2000 prices, $ billion), 2007–11
Year Constant 2000 Prices, $ billion % Growth
2007 2,089.1 3.4%
2008 2,106.0 0.8%
2009 1,998.7 (5.1%)
2010 2,071.5 3.6%
2011 2,133.1 3.0%
Table 26: Germany gdp (current prices, $ billion), 2007–11
Year Current Prices, $ billion % Growth
2007 3,328.6 14.6%
2008 3,640.7 9.4%
2009 3,307.2 (9.2%)
2010 3,286.5 (0.6%)
2011 3,577.0 8.8%

Table 27: Germany inflation, 2007–11
Year Inflation Rate (%)
2007 2.3%
2008 2.7%
2009 0.2%
2010 1.1%
2011 2.5%
Table 28: Germany consumer price index (absolute), 2007–11
Year Consumer Price Index (2000 = 100)
2007 112.7
2008 115.7
2009 116.0
2010 117.3
2011 120.2
Table 29: Germany exchange rate, 2007–11
Year Exchange rate ($/€)
2007 0.7308
2008 0.6834
2009 0.7192
2010 0.7549
2011 0.7188

APPENDIX
Methodology
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checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry associations
The International Association for Energy Economics
28790 Chargrin Blvd., Suite 350, Cleveland, Ohio, 44122-4630, USA
Tel.: 1 216 464 5365
Fax: 1 216 464 2737
www.iaee.org/en/index.aspx
The Council of European Energy Regulators
Rue le Titen 28, B-1000, Brussels, BEL
Tel.: 32 2 788 7330
Fax: 32 2 788 7350
www.ceer-eu.org
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Electricity in Asia-Pacific
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elec in Ger 2012.pdf

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