E.on strategy & key figures 2010

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E.on strategy & key figures 2010

  1. 1. Strategy&KeyFigures2010 Strategy & Key Figures 2010 E.ON Russia Power Moscow E.ON Italia Milan E.ON U.S. Louisville E.ON UK Coventry E.ON Sverige Malmö E.ON Energie Munich E.ON Climate & Renewables Düsseldorf E.ON Energy Trading Düsseldorf E.ON Ruhrgas Essen E.ON AG Düsseldorf E.ON España Madrid
  2. 2. Strategy&KeyFigures2010 Strategy & Key Figures 2010 E.ON Russia Power Moscow E.ON Italia Milan E.ON U.S. Louisville E.ON UK Coventry E.ON Sverige Malmö E.ON Energie Munich E.ON Climate & Renewables Düsseldorf E.ON Energy Trading Düsseldorf E.ON Ruhrgas Essen E.ON AG Düsseldorf E.ON España Madrid
  3. 3. Content E.ON Group Strategy & Investment Plan Key Figures Central Europe Market Unit Pan-European Gas Market Unit U.K. Market Unit Nordic Market Unit U.S. Midwest Market Unit Energy Trading Market Unit New Market Units New Markets: Russia, Italy, Spain Climate & Renewables Market Unit 3 4 6 21 53 81 95 111 125 137 138 156
  4. 4. 2 E.ON Italia S.p.A., Milan Italy MU E.ON Sverige AB, Malmö Nordic MU E.ON Russia Power, Moscow Russia MU E.ON U.S. LLC1, Louisville U.S. Midwest MU E.ON Climate & Renewables GmbH, Düsseldorf Climate & Renewables MU E.ON Energy Trading SE, Düsseldorf Energy Trading MU E.ON España S.L., Madrid Spain MU E.ON UK plc, Coventry U.K. MU E.ON Energie AG, Munich Central Europe MU E.ON Ruhrgas AG, Essen Pan-European Gas MU Corporate Center E.ON AG, Düsseldorf Group Structure 1Discontinued operations. MU = market unit.
  5. 5. 3 E.ON Group 4 Strategy & Investment Plan 4 Strategic Direction 5 2009–2012 Investment Plan 5 Strict Strategic and Acquisition Criteria 6 Key Figures 6 Consolidated Balance Sheets 8 Consolidated Statements of Income 9 Sales and Adjusted EBIT 10 Return on Capital Employed (ROCE) and Value Added 10 ROCE and Value Added by Segment 11 Investments by Segment 12 Employees by Segment 13 E.ON Stock Information 14 Dividend Policy 15 Shareholder Structure 15 ADR Program 16 Operating Cash Flow and Funds from Operations 17 Finance Strategy 18 Funding Policy and Access to Debt Markets 19 Debt Profile 19 E.ON Bond Profile 20 E.ON Bonds
  6. 6. 4 E.ON Group Strategy & Investment Plan Strategic Direction With a broad geographic footprint and strong market posi- tions, E.ON is one of Europe’s leading energy companies. Our growth in recent years has enabled us to expand our pres- ence in Europe, tap new markets like Russia, and become a leader in renewables. We are therefore superbly positioned to successfully meet new challenges and seize new opportuni- ties in Europe’s energy marketplace. Key areas in the years ahead will be supply security, affordability, and above all climate protection. We are gearing all our businesses to meet these challenges and opportunities and are making targeted investments in climate-friendly and efficient energy supply. Our strategy is founded on six key beliefs: 1. Presence along the entire value chain We’re active along the entire value chain in power and gas: in production, import and wholesale, distribution, and end- customer sales. Our comprehensive market knowledge enables us to operate efficiently and to create value along the entire value chain. 2. Power and gas convergence Power and gas markets are strongly connected upstream (gas supply to gas-fired generation), midstream (cross-com- modity energy trading), and downstream (increasing popu- larity of dual-fuel products). Our solid position in all three areas provides us with valuable synergies and a superior compe- titive positioning. 3. Strong market positions International scale and strong market positions give us a key competitive edge in liberalized markets and create a solid foundation for ensuring supply security and for making the necessary large-scale investments in climate friendly power generation. 4. Growth Growth beyond our traditional core markets (Germany, the United Kingdom, Sweden) creates additional opportunities to expand our business so that we sustain our success in a consolidating European energy market. 5. Value from experience Our deep expertise in all facets of the energy business is a considerable competitive advantage, one that we leverage fully by sharing best practices across our entire organization. 6. Market and competition Open, competitive markets are the best framework for ensur- ing a secure, efficient energy supply. An integrated European energy market offers E.ON superb opportunities to strengthen our market position and to capture value from cross-border synergies. In line with these beliefs, E.ON pursues a clear and focused business model Focus on: • Power and gas. • Presence along the entire value chain up-, mid- and downstream. • Geographic focus on Europe and the U.S. E.ON’s short- and mid-term focus E.ON has completed a phase of significant external growth. Consequently, the current priorities lie with performance, portfolio streamlining and an investment plan strongly focused on organic growth. Our Group-wide performance project PerformtoWin will deliver up to €1.5 billion EBIT by 2011. Portfolio-streamlining measures are expected to generate at least €10 billion of divestment proceeds in 2009–2010. From 2010–2012, €24 billion investments are foreseen, of which about 60 percent are for organic growth, in particular gener- ation, renewables as well as gas upstream and supply. Strategy & Investment Plan
  7. 7. 5 2009–2012 Investment Plan € in billions Cash-effective investments Asset swaps 2009 2010 2011 2012 12 11 10 9 8 7 6 5 4 3 2 1 2009 investments • €9.2 billion of cash-effective investments: lower than planned as some amounts were moved from 2009 to 2010 • €2.8 billion asset swaps: mainly Yuzhno Russkoye 2010–12 investment plan • Continuation of 2009–2011 investment plan • €24 billion between 2010 and 2012 • Commissioning conventional power plants in 2010 • 3,800 MW of CCGTs in Europe • 400 MW Shaturskaya CCGT in Russia • 750 MW Trimble County 2 coal-fired power plant in the U.S. Midwest Cash outflow increasingly aligned with operating cash flow generation 9.2 ~10 ~8 ~6 2.8 Investments 2009 and Investment Plan 2009–2012 Strict Strategic and Acquisition Criteria Strategic criteria • Market attractiveness (returns, growth, regulation, country risk). • Target attractiveness (asset quality, market position, management quality). • Value creation potential (cost reduction, integration benefits, transfer of best practice). Acquisition criteria • Value enhancing over project lifetime. • Earnings enhancing in the first full year after acquisition.1 E.ON’s commitment If individual assets do not contribute in line with financial and strategic expectations, E.ON will take concrete portfolio measures by 2010. 1Applicable to acquisitions of companies with relatively mature/stable business.
  8. 8. 6 E.ON Group Strategy & Investment Plan Consolidated Balance Sheets Key Figures E.ON AG and Subsidiaries Consolidated Balance Sheets—Assets € in millions December 31 2009 2008 Goodwill 16,901 17,311 Intangible assets 8,242 6,696 Property, plant and equipment 60,787 56,480 Companies accounted for under the equity method 7,342 8,931 Other financial assets 9,131 8,823 Equity investments 5,461 3,806 Non-current securities 3,670 5,017 Financial receivables and other financial assets 2,652 2,451 Operating receivables and other operating assets 3,388 3,789 Income tax assets 1,549 1,988 Deferred tax assets 3,076 2,248 Non-current assets 113,068 108,717 Inventories 4,518 4,774 Financial receivables and other financial assets 1,729 2,101 Trade receivables and other operating assets 23,007 28,848 Income tax assets 1,925 1,515 Liquid funds 6,116 6,348 Securities and fixed-term deposits 1,722 2,125 Restricted cash and cash equivalents 184 552 Cash and cash equivalents 4,210 3,671 Assets held for sale 2,273 4,521 Current assets 39,568 48,107 Total assets 152,636 156,824
  9. 9. 7 E.ON AG and Subsidiaries Consolidated Balance Sheets—Equity and Liabilities € in millions December 31 2009 2008 Capital stock 2,001 2,001 Additional paid-in capital 13,747 13,741 Retained earnings 26,578 22,181 Accumulated other comprehensive income 1,552 110 Treasury shares -3,530 -3,549 Equity attributable to shareholders of E.ON AG 40,348 34,484 Minority interests (before reclassification) 4,157 4,538 Reclassification related to put options -550 -578 Minority interests 3,607 3,960 Equity 43,955 38,444 Financial liabilities 30,955 25,036 Operating liabilities 7,850 9,753 Income taxes 3,124 2,602 Provisions for pensions and similar obligations 2,884 3,559 Miscellaneous provisions 18,808 19,198 Deferred tax liabilities 7,505 6,277 Non-current liabilities 70,828 66,425 Financial liabilities 7,120 16,022 Trade payables and other operating liabilities 23,099 28,370 Income taxes 1,643 2,153 Miscellaneous provisions 4,715 4,260 Liabilities associated with assets held for sale 1,276 1,150 Current liabilities 37,853 51,955 Total equity and liabilities 152,636 156,824
  10. 10. 8 E.ON Group Key Figures Consolidated Statements of Income E.ON AG and Subsidiaries Consolidated Statements of Income € in millions 2009 2008 Sales including electricity and energy taxes 83,718 88,885 Electricity and energy taxes -1,901 -2,132 Sales 81,817 86,753 Changes in inventories (finished goods and work in progress) 43 27 Own work capitalized 532 526 Other operating income 24,961 15,454 Cost of materials -62,087 -66,419 Personnel costs -5,357 -5,130 Depreciation, amortization and impairment charges -3,981 -6,852 Other operating expenses -22,603 -20,337 Income/Loss (-) from companies accounted for under the equity method 941 912 Income/Loss (-) from continuing operations before financial results and income taxes 14,266 4,934 Financial results -2,473 -2,351 Income from equity investments -224 -458 Income from other securities, interest and similar income 601 1,159 Interest and similar expenses -2,850 -3,052 Income taxes -2,976 -834 Income/Loss (-) from continuing operations 8,817 1,749 Income/Loss (-) from discontinued operations, net -172 -128 Net income 8,645 1,621 Attributable to shareholders of E.ON AG 8,396 1,283 Attributable to minority interests 249 338 in € Earnings per share (attributable to shareholders of E.ON AG)—basic and diluted from continuing operations 4.50 0.76 from discontinued operations -0.09 -0.07 from net income 4.41 0.69
  11. 11. 9 Sales and Adjusted EBIT Central Europe Pan-European Gas U.K. Nordic U.S. Midwest 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Corporate Center Energy Trading New Markets 4,817 535 -304 862 949 384 649 1,754 4,720 770 -295 90 645 395 922 2,631 € in millions 2008 (total: 9,878) 2009 (total: 9,646) Adjusted EBIT 41,419 20,640 1,843 41,251 7,749 -44,530 -36,234 10,097 3,348 41,135 27,422 1,880 31,760 5,862 11,051 3,877 Central Europe Pan-European Gas U.K. Nordic U.S. Midwest Energy Trading New Markets New MarketsCorporate Center -40,000 -30,000 -20,000 -10,000 0 10,000 20,000 30,000 40,000 € in millions 2008 (total: 86,753) 2009 (total: 81,817) Sales
  12. 12. 10 E.ON Group Key Figures ROCE and Value Added by Segment Return on Capital Employed (ROCE) and Value Added E.ON Group ROCE and Value Added € in millions 2009 2008 Adjusted EBIT 9,646 9,878 Goodwill, intangible assets, and property, plant, and equipment 85,930 80,487 + Shares in affiliated and associated companies and other share investments 12,803 12,737 + Inventories 4,518 4,774 + Accounts receivable 11,577 14,416 + Other non-interest-bearing current assets, including deferred income and deferred tax assets 23,629 28,493 - Non-interest-bearing provisions¹ 7,595 7,784 - Non-interest-bearing liabilities, including deferred expenses and deferred tax liabilities 44,498 50,304 - Adjustments² 2,588 1,664 Capital employed in continuing operations (at year-end) 83,776 81,155 Capital employed in continuing operations (annual average)³ 82,459 76,367 ROCE 11.7% 12.9% Cost of capital 9.1% 9.1% Value added 2,144 2,902 1Goodwill represents final figures following the competition of the purchase price allocation. 2Non-interest-bearing provisions mainly include current provisions, such as those relating to sales and procurement market obligations. They do not include provisions for pensions or for nuclear-waste management. 3Capital employed is adjusted to exclude the mark-to-market valuation of other share investments (including related deferred tax effects) and operating liabilities for certain purchase obligations to minority shareholdings pursuant to IAS 32. The adjustment to exclude the mark-to-market valuation of other share investments applies primarily to our shares in Gazprom. 4In order to better depict intraperiod fluctuations in capital employed, annual average capital employed is calculated as the arithmetic average of the amounts at the begin- ning of the year, the end of the year, and the balance-sheet dates of the three interim reports. Capital employed in continuing operations amounted to €82,286 million, €82,405 million, and €83,180 million at March 31, June 30, and September 30, 2009, respectively. ROCE and Value Added by Segment € in millions Central Europe Pan-European Gas1 U.K. Nordic 2009 2008 2009 2008 2009 2008 2009 2008 Adjusted EBIT 4,817 4,720 1,754 2,631 649 922 535 770 ÷ Capital employed 22,171 19,310 17,638 17,594 8,947 10,101 6,098 6,948 = ROCE 21.7% 24.4% 9.9% 15.0% 7.3% 9.1% 8.8% 11.1% Cost of capital2 9.2% 9.2% 8.8% 8.8% 9.8% 9.8% 9.3% 9.3% Value added 2,771 2,935 194 1,091 -224 –71 -30 125 1Capital employed is adjusted to exclude the mark-to-market valuation of other share investments. This applies primarily to our shares in Gazprom. 2Before taxes.
  13. 13. 11 ROCE and Value Added by Segment (continued) € in millions U.S. Midwest Energy Trading New Markets Corporate Center E.ON Group 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Adjusted EBIT 384 395 949 645 862 90 -304 -295 9,646 9,878 ÷ Capital employed 6,260 6,537 527 868 19,067 15,596 1,751 -587 82,459 76,367 = ROCE 6.1% 6.0% n/a n/a 4.5% 0.6% – – 11.7% 12.9% Cost of capital 8.7% 8.7% n/a n/a 10.4% – – – 9.1% 9.1% Value added -163 -176 n/a n/a -1,125 -1,528 – – 2,144 2,902 Investments by Segment Central Europe Pan-European Gas U.K. Nordic 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 U.S. Midwest New Markets 2008 (total: 18,406, thereof outside Germany: 15,415) € in millions 2009 (total: 9,200, thereof outside Germany: 6,644) New Markets Energy Trading Corporate Center 53 -146 3,256 1,610 897 1,104 545 1,881 8 7,939 3,188 1,215 1,162 939 650 3,305 Cash-Effective Investments
  14. 14. 12 E.ON Group Key Figures Employees by Segment 2008 (total: 93,538) 2009 (total: 88,227) Central Europe Pan-European Gas U.K. Nordic U.S. Midwest Energy Trading New Markets New MarketsCorporate Center2 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 1Figures do not include apprentices, managing directors, and board members. 2Includes E.ON IS. 48,126 16,098 5,570 3,119 1,075 7,976 3,143 3,120 44,142 17,480 5,826 3,110 885 9,214 9,827 3,054 Employees1
  15. 15. 13 E.ON Stock Information Type of shares Ordinary shares with no par value/Registered shares Stock codes Germany USA1 WKN ENAG99 Cusip No. 268 780 103 ISIN DE000ENAG999 Stock symbols Reuters Bloomberg FSE EONGn.F FSE EOAN GF Xetra EONGn.DE Xetra EOAN GY ADR EONGY.PK ADR EONGY US 1In the United States, E.ON shares trade in the over-the-counter market (OTC market) via ADR. E.ON Stock Key Figures per Year1 € per share 2005 2006 2007 2008 2009 Earnings attributable to the shareholders of E.ON AG 3.75 2.82 3.69 0.68 4.80 Earnings from adjusted net income 1.84 2.22 2.62 3.01 2.80 Dividend 0.92 1.12 1.37 1.50 1.50 Dividend payout (€ in millions) 4,6142 2,210 2,560 2,857 2,858 Twelve-month high3 29.64 34.80 48.69 50.93 30.47 Twelve-month low3 21.50 27.37 32.02 23.50 18.19 Year-end closing price at Dec. 303 29.13 34.28 48.53 28.44 29.23 Number of shares outstanding (in millions) 1,977 1,979 1,895 1,905 1,905 Market capitalization4 (€ in billions) 57.6 67.6 92.0 54.2 55.7 Book value5 22.50 24.62 26.06 18.10 21.17 Market-to-book ratio6 (percentage) 129 139 186 157 138 E.ON stock trading volume7 (€ in billions) 62.5 92.5 136.2 119.2 55.9 Trading volume of all German stocks (€ in billions) 1,095.8 1,539.3 2,350.9 2,029.6 1,009.1 E.ON stock’s share of German trading volume (percentage) 5.7 6.0 5.8 5.9 5.5 1Adjusted for discontinued operations. 2Includes special dividend of €1.42 per share. 3Xetra. 4Based on ordinary shares outstanding. 5Shares attributable to the shareholders of E.ON AG. 6Year-end stock price expressed as a percentage of book value per share (excluding minority interests). 7On all German stock exchanges, including Xetra. Weighting of E.ON Stock in Major Indices As of March 31, 2010 % DAX 9.6 Dow Jones EURO STOXX 50 3.3 Dow Jones STOXX Utilities 17.5 Source: Bloomberg. E.ON Stock March 31, 2010 March 31, 2009 Shares outstanding (in millions) 1,905 1,905 Closing price (€) 27.34 20.91 Market capitalization (€ in billions)1 52.1 39.8 1Based on shares outstanding. Performance and Trading Volume January 1 – March 31 2010 2009 High (€)1 29.36 30.47 Low (€)1 25.60 18.19 Trading volume2 millions of shares 508.0 679.9 € in billions 13.7 15.2 1Xetra. 2Source: Bloomberg (all German stock exchanges).
  16. 16. 14 Dividend Policy Target dividend payout ratio at 50 to 60 percent of adjusted net income • Since 2003 the dividend has increased by 14.4 percent per year on average. • Payout ratio 2009: 54 percent. Ordinary dividend Special dividend Payout ratio (%) 2.00 1.00 2003 2004 2005 2006 2007 2008 2009 0.67 0.78 0.92 + 1.42 1.12 1.37 1.50 1.50 € per share Strong Increase of Dividend per Share 51 54 4747 49 51 CAGR 14.4% E.ON Group Key Figures
  17. 17. 15 Shareholder Structure According to a recent survey, 85.9 percent of all identified shareholders are institutional and 14.2 percent retail inves- tors. The geographical breakdown relates to 29.9 percent domestic and 70.0 percent foreign shareholders. ADR Program E.ON shares trade in the United States in the over-the-counter market (OTC market) via ADRs (American Depositary Receipt). The OTC code is EONGY. E.ON’s ADR program gives U.S. investors the opportunity to buy E.ON shares and hold share certificates that are essentially like American shares. ADRs are quoted in U.S. dollars, a signif- icant advantage for U.S. investors. Dividends are also paid in U.S. dollars. ADR holders have the same rights and obligations as ordinary shareowners. They can attend and vote at Share- holders Meetings, participate in profits, and receive information. One E.ON ADR equals one E.ON ordinary share. Detailed information on E.ON’s ADR program is available from JPMorgan at www.adr.com. Percentages Shareholder Structure1, 2 2.9% Switzerland 5.1% Rest of World 8.6% France 14.1% Rest of Europe 29.9% 24.8% 14.7% 1Percentages based on total investors identified. 2Divergence from 100% due to rounding effects. Sources: share register (as of Feb. 18, 2010), Thomson Reuters (as of Dec. 31, 2009). Germany USA & Canada U.K.
  18. 18. 16 E.ON Group Key Figures Operating Cash Flow and Funds from Operations Strong operating cash flow generation • The core energy business generates a strong and stable cash flow. • Cash provided by operating activities was 34 percent higher in 2009 than in 2008. The increase was primarily due to the reduction of working capital at the U.K. and Central Europe market units, which had been relatively high in 2008, and to positive effects from the utilization of gas storage at the Pan-European Gas market unit. In addition, a negative prior-year effect in the trading oper- ations was reversed. E.ON Operating Cash Flow and Funds from Operations 2009 € in millions 2009 Net income 8,645 Income from discontinued operations, net 172 Depreciation, amortization and impairment of intangible assets and of property, plant and equipment 3,981 Changes in provisions 162 Changes in deferred taxes 918 Other non-cash income and expenses 419 Gain/Loss on disposal of -5,095 Intangible assets and property, plant and equipment -62 Equity investments -4,829 Securities (>3 months) -204 Changes in operating assets and liabilities and in income taxes -148 Inventories 739 Trade receivables 1,983 Other operating receivables and income tax assets 1,915 Trade payables -892 Other operating liabilities and income taxes -3,893 Cash provided by operating activities of continuing operations (operating cash flow) 9,054 Reversal of “Changes in operating assets and liabilities and in income taxes” 148 thereof: marking to market of derivatives1 -1,089 Funds from operations (FFO) 8,113 1The position “marking to market of derivatives“ is part of non-operating earnings. Due to its non-cash nature, the whole amount is adjusted in the cash flow statement in the position ”changes in operating assets and liabilities and in income taxes.“ However, as the adjustment for “marking to market of derivatives“ is not part of working capital changes, it has to be added back again when calculating funds from operations. Cash provided by operating activites and funds from opera- tions for 2009 were negatively impacted by two special items (European Commission fine; tax payment).
  19. 19. 17 Finance Strategy of our competitors. Based on the methodologies currently used by rating agencies, a debt factor from 2.8 to 3.3 is com- patible with an A/A2 rating. We actively manage E.ON’s capital structure. If our debt fac- tor is significantly above 3, we apply strict investment dis- cipline. We also utilize portfolio measures or capital increases, if required. Our target dividend payout ratio is an additional component of our finance strategy. The annual target payout ratio is between 50 and 60 percent of adjusted net income. For years, E.ON has pursued a stable and consistend dividend policy and intends to do so going forward.This ensures that our share- holders can assume to hold a long-term investment with a stable return. Equity and debt capital are both important sources for the E.ON Group. E.ON’s finance strategy therefore aims to balance the interests of both shareholders and debt investors equitably. The main focus of our finance strategy is on E.ON’s capital structure, which we monitor using the debt factor. Debt factor is our economic net debt divided by adjusted EBITDA. Economic net debt includes not only our financial liabilities but also our provisions for pensions and asset retirement obligations. We have defined 3 as our target debt factor, which is derived from our target rating of single A flat (A/A2). An A/A2 rating makes it possible for E.ON to have an efficient capital structure, gives us unrestricted access to all segments of the capital market, and provides us with a risk buffer for unforeseeable events. Our target rating also fits the requirements of a lead- ing utility company and is a solid rating compared with those Economic Net Debt € in millions December 31 2009 2008 Liquid funds 6,116 6,348 Non-current securities 3,670 5,017 Total liquid funds and non-current securities 9,786 11,365 Financial liabilities to banks and third parties -35,579 -39,095 Financial liabilities to Group companies -2,198 -1,963 Total financial liabilities -37,777 -41,058 Net financial position -27,991 -29,693 Fair value (net) of currency derivatives used for financing transactions1 -6 1,988 Provisions for pensions -2,884 -3,559 Asset retirement obligations -15,050 -14,839 Less prepayments to Swedish nuclear fund 1,266 1,157 Economic net debt -44,665 -44,946 Adjusted EBITDA 13,526 13,385 Debt factor 3.3 3.4 1Does not include transactions relating to our operating business or asset management.
  20. 20. 18 E.ON Group Key Figures Funding Policy and Access to Debt Markets Funding policy • Our funding policy is designed to give E.ON access to a variety of funding resources at any time. • In general external funding is carried out by our Dutch finance subsidiary E.ON International Finance B.V. under guarantee of E.ON AG or by E.ON AG itself, and the funds are subsequently on-lent within the Group. • The funding policy is based on the following principles: – Using a variety of markets and debt instruments to maximize the diversity of our investor base. – Issuing bonds with terms that give our debt portfolio a balanced maturity profile. – Combining large-volume benchmark issues with smaller issues that take advantage of market oppor- tunities as they arise. Ready access to banks and debt capital markets • Committed syndicated credit facility – Tranche A: 364-day tranche of €4 billion (maturing in November 2010); for general corporate purposes (as of March 31, 2010: no amounts outstanding). – Tranche B: Long-term tranche of €5 billion (maturing in December 2011); for general corporate purposes (as of March 31, 2010: no amounts outstanding). • Existing capital market programs – €10 billion European commercial paper program and $10 billion U.S. commercial paper program (as of March 31, 2010: equivalent of €1.6 billion outstanding under both programs). – €35 billion debt issuance program (as of March 31, 2010: around €26 billion worth of bonds outstanding).
  21. 21. 19 Debt Profile € in millions As of March 31, 2010 Maturity Profile of Outstanding Bonds and Promissory Notes of E.ON International Finance B.V. and E.ON AG 4,000 3,000 2,000 1,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+ 64% Euros Pounds sterling 16% U.S. dollars 10% Other 1% Japanese yen 2% Swedish kroner 2% Swiss francs 5% Percentages (total: €30.3 billion) E.ON Group Bonds and Promissory Notes by Currency1 1Outstanding E.ON Group bonds (including private placements) and promissory notes at March 31, 2010. Financial Liabilities by Segment As of March 31, 2010 € in billions E.ON AG & E.ON International Finance B.V. Market units & other E.ON Group Bonds 27.7 1.2 28.9 Commercial paper 1.6 0 1.6 Promissory notes 1.4 0 1.4 Bank loans/other 2.3 3.7 6.0 Total 33.0 4.9 37.9 E.ON Bond Profile
  22. 22. 20 E.ON Group Key Figures E.ON Bonds Major Bond Issues of E.ON International Finance B.V.1 Volume issued in the respective currency Initial term Repayment Coupon EUR 1,000 million 2 years Nov 2010 4.750% CHF 200 million 3 years Dec 2010 3.000% CHF 500 million 2 years Feb 2011 2.000% SEK 1,100 million 2 years May 2011 3 mth STIB+95 EUR 750 million 3 years Sep 2011 5.000% EUR 750 million 2.5 years Nov 2011 2.500% GBP 500 million 10 years May 2012 6.375% USD 300 million 3 years June 2012 3.125% CHF 250 million2 4 years Sep 2012 3.250% EUR 1,750 million 5 years Oct 2012 5.125% CHF 250 million 4 years Dec 2012 3.875% EUR 750 million 4 years Mar 2013 4.125% EUR 1,500 million 5 years May 2013 5.125% CHF 300 million 5 years May 2013 3.625% GBP 350 million 5 years Jan 2014 5.125% EUR 1,750 million 5 years Jan 2014 4.875% CHF 525 million3 5 years Feb 2014 3.375% EUR 1,000 million 6 years June 2014 5.250% CHF 225 million 7 years Dec 2014 3.250% EUR 1,250 million 7 years Sep 2015 5.250% EUR 1,500 million 7 years Jan 2016 5.500% EUR 900 million 15 years May 2017 6.375% EUR 2,375 million4 10 years Oct 2017 5.500% USD 2,000 million5 10 years Apr 2018 5.800% GBP 850 million6 12 years Oct 2019 6.000% EUR 1,400 million7 12 years May 2020 5.750% GBP 975 million8 30 years June 2032 6.375% GBP 900 million 30 years Oct 2037 5.875% USD 1,000 million5 30 years Apr 2038 6.650% GBP 700 million 30 years Jan 2039 6.750% 1Listing: All bonds are listed in Luxembourg with the exception of the CHF-denominated bonds, which are listed on the SWX Swiss Exchange, and the two Rule 144A/Regula- tion S USD bonds, which are unlisted. 2The volume of this issue was raised from originally CHF 200 million to CHF 250 million. 3The volume of this issue was raised from originally CHF 400 million to CHF 525 million. 4The volume of this issue was raised in two steps from originally EUR 1,750 million to EUR 2,375 million. 5Rule 144A/Regulation S bond 6The volume of this issue was raised from originally GBP 600 million to GBP 850 million. 7The volume of this issue was raised from originally EUR 1,000 million to EUR 1,400 million. 8The volume of this issue was raised from originally GBP 850 million to GBP 975 million. The following table gives an overview of all bonds issued or guaranteed by E.ON AG. Typically, E.ON International Finance B.V. issues bonds, guaranteed by E.ON AG. As of March 31, 2010, the following bonds were outstanding: As of March 31, 2010, there were additionally oustanding private placements with a total volume of approximately €2.1 billion, as well as promissory notes with a total volume of approxi- mately €1.4 billion.
  23. 23. E.ON Group 21 Central Europe Market Unit 22 Introduction 23 Market Overview Germany 24 Business Activities 25 2009 Sales 26 Power and Gas Activities in Europe 27 Business Activities along the Value Chain 27 2009 Power Procurement and Sales Volume 28 Location of Major Generation Assets 29 Generation Capacity by Sources 30 Generation Assets 33 Generation Output by Sources 34 Provisions for Nuclear Power 35 German Power Imports and Exports 36 Integration of Wind Energy into the Grid 37 Distribution System in the German Power Market 38 Distribution System in the German Gas Market 39 Activities in the German Sales Market—Power 40 Activities in the German Sales Market—Gas 41 Activities in the Benelux 42 Activities in France 43 Activities in Switzerland 44 Central Europe East—Activities in the Power Market 46 Central Europe East—Activities in the Gas Market 47 Power Customers in Europe 48 Composition of Power Prices in Germany 49 Composition of Power Prices 50 Key Figures
  24. 24. 22 Central Europe Market Unit Introduction The Central Europe market unit is led by E.ON Energie. E.ON Energie, which is wholly owned by E.ON, is one of the largest non-state-owned European power companies in terms of electricity sales. E.ON Energie had revenues of €41.4 billion, and an adjusted EBIT of €4.8 billion in 2009. E.ON Energie’s core business consists of the ownership and operation of power generation facilities, the transmission1 and distribution grid and the sale of electricity and, to a lesser extent, gas and heat, in Germany and Continental Europe. It is one of the four interre- gional electric utilities in Germany that are interconnected in the western European power grid. In late 2008, E.ON committed itself to divest 5,000 MW of gen- eration capacity in Germany and its extra-high voltage grid. This grid was sold in 2009 to the dutch state-owned network operator TenneT. The power station capacities were sold to various European competitors, including EDF, GDF SUEZ, Stat- kraft of Norway and Verbund of Austria, or were partly swapped for generation capacities in France and Belgium.These trans- actions reduced our share of the German power generation market to about 15 percent. E.ON Energie is embarking on a significant program to build new generating capacity in many of the countries in which it operates: • In 2010 already the following units have sucessfully started commercial operation: – Emile Huchet 7&8 in France with a capacity of 860 MW – Irsching 5 in Germany with a rating of 800 MW – Rehabilitation of pumped-storage facility at Waldeck 1 in Germany – CHP Plattling in Germany with a rating of 116 MW The gas-fired combined-cycle plants in Malzenice/Slovakia (430 MW) and Gönyü/Hungary (430 MW) are expected to start commercial operation at the end of 2010 and in 2011. • Construction is underway on new facility with a rating of (540 MW) in Irsching (unit 4) which is based on the latest gas turbine technology. Commercial operation is scheduled for 2011. Construction is also underway on the new facilities Datteln, Germany (a 1,100 MW hard-coal plant, scheduled to begin commercial operation in 2012) and Maasvlakte, Netherlands (a 1,100 MW hard-coal plant, scheduled to begin operations in 2012). In addition, E.ON Energie plans to build new plants at the location of Staudinger, Germany (a 1,100 MW hard-coal plant) and in the harbour port of Antwerp, Belgium, if all requirements are met. 1Sold effective December 31, 2009.
  25. 25. 23 Market Overview Germany Customers Local utilities Local utilities Local utilities >800 Number of companies Major utilities 4 Large municipal utilities 26 Regional and national distributors 70 Source: BDEW 2009. Central Europe—Electricity Market Billion kWh Power supplied as of Dec. 31, 2009 Germany 297.3 France 20.2 Benelux 24.0 Czech Republic 12.8 Hungary 14.4 Romania 4.1 Bulgaria 5.2 Central Europe—Gas Market Billion kWh Gas supplied as of Dec. 31, 2009 Germany 92.0 France 9.1 Benelux 5.6 Czech Republic 4.0 Hungary 9.9 Romania 25.6 Source: E.ON.
  26. 26. 24 Central Europe Market Unit Business Activities1 1As of December 31, 2009. 2Six of the seven regional utility companies (excluding E.ON Thüringer Energie AG) own stakes of 10 percent each. 40 percent are directly held by E.ON Energie AG. 3The remaining 4.24 percent is held by E.ON Ruhrgas AG. 4Sold effective December 31, 2009. 5Managed by E.ON Energie; total share: 90.2 percent (69.8 percent held by E.ON Ruhrgas International AG). 6The remaining 43.0 percent interest is held by E.ON Ruhrgas AG. E.ON Energie AG 100% • Leading entity for the management and coordination of the market unit’s activities • Centralized strategic, controlling and service functions E.ON AG Central Europe West Non-regulated Conventional Power Plants E.ON Kraftwerke GmbH (100%) • Power generation by conventional power plants • District heating • Industrial power plants E.ON Benelux Holding B.V. (100%) • Power generation by conventional power plants in the Nether- lands and Belgium • District heating in the Netherlands • Sales of power and gas in the Netherlands and Belgium Société Nationale d’Electricité et de Thermique S.A. (SNET) (100%) • Power generation by conventional power plants in France • Sales of power in France Nuclear Power Plants E.ON Kernkraft GmbH (100%) • Power generation by nuclear power plants Hydroelectric Power Plants E.ON Wasserkraft GmbH (100%) • Power generation by hydroelectric power plants Waste Incineration E.ON Energy from Waste AG, formerly BKB AG, renamed in 2008 (100%) • Energy generation from waste incineration Sales of Electricity, Gas and Heat E.ON Vertrieb Deutschland GmbH2 • Providing sales service and management activities for E.ON Energy Sales GmbH and six regional sales companies • Sales service and management for E WIE EINFACH Strom & Gas GmbH E.ON Energy Sales GmbH (100%) • Supply of electricity and energy services to large industrial customers, as well as to regional and municipal distributors • Centralized wholesale functions Six regional sales companies and one regional utility company (E.ON Thüringer Energie AG) across Germany (shareholding percentages range from 53% to 100%) • Sales of electricity, gas, heat and water to retail customers • Energy support services E WIE EINFACH Strom & Gas GmbH (100%) • Sales of electricity and gas to residential customers and small and medium enterprises across Germany Ruhr Energie GmbH (100%) • Customer service and electricity and heat supply to utilities and industrial customers in the Ruhr region E.ON France S.A.S. (95.76%)3 • Sales of electricity and gas in France via subsidiary E.ON Energie S.A.S. Central Europe West Regulated Transmission4 E.ON Netz GmbH (100%) • Operation of high-voltage grids (380 kilovolt–110 kilovolt) • System operation, including provision of regulating and balanc- ing power Distribution of Electricity and Gas Six regional utility companies and one regional grid company (TEN Thüringer Energienetze GmbH) across Germany (shareholding percentages range from 53% to 100%) • Distribution of electricity and gas to retail customers Central Europe East E.ON Hungária Energetikai ZRt. (100%) • Generation, distribution and sales of electricity and gas in Hungary through its group companies E.ON Czech Holding AG (100%) • Generation, distribution and sales of electricity and gas in the Czech Republic through its group companies E.ON România S.R.L. (20.4%)5 • Distribution and sales of electricity and gas in Romania through its group companies E.ON Bulgaria EAD (100%) • Distribution and sales of electricity in Bulgaria through its group companies E.ON Slovensko a.s. (100%) • Generation, distribution and sales of electricity in Slovakia through its group companies (which are valued under the equity method, given E.ON Slovensko’s minority interest in those companies) Other/Services E.ON Engineering GmbH (57%)6 • Provision of consulting and planning services in the energy sector to companies within the Group and third parties • Marketing of expertise in the area of conventional and renewable power generation and cogeneration, as well as a pipeline business E.ON Facility Management GmbH (100%) • Infrastructure services
  27. 27. 25 2009 Sales Significant Market Positions • One of Europe’s leading utility companies. • A leading power supplier in Germany. • Substantial position in Germany’s gas distribution market. • Strong position as international power supplier, active particularly in the Netherlands, Belgium, France, Hun- gary, Czech Republic, Bulgaria, Romania and Slovakia. € in billions Total: 41,419 Central Europe—Sales by Business Area Other/ Consolidation Central Europe East Central Europe West Regulated Central Europe West Non-regulated -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 5,323 12,288 27,427 -3,619
  28. 28. 26 Central Europe Market Unit Power and Gas Activities in Europe Key Figures Overall Market Power1 As of December 31, 2009 Central Europe shareholdings Overall market2 Power supplied 378 billion kWh 791 billion kWh Customers 14.2 million 76 million Transmission system3 length (≥110 kV) 54,000 km 185,000 km Attributable generation capacity 28,407 MW 179,000 MW Generation output 130 billion kWh 600 billion kWh4 1Region Bulgaria, Czech Republic, Germany, Hungary, Netherlands, Belgium, Romania, France. 2Some data is only available for former years. 3Extra-high voltage grid Germany sold effective December 31, 2009. 4Overall figures only Germany and Netherlands. Key Figures Overall Market Gas As of December 31, 2009 Central Europe shareholdings Overall market1 Gas supplied 146 billion kWh 1,602 billion kWh Customers 3.6 million 32 million 1Source: eurogas (Czech Republic, Germany, Hungary, Netherlands); some data is only available for former years. Nether- lands Germany Belgium Czech Republic Slovakia Hungary Romania Bulgaria France Switzerland
  29. 29. 27 Business Activities along the Value Chain 2009 Power Procurement and Sales Volume1 Upstream Midstream Downstream Generation Transmission1 Distribution Retail non-regulated regulated 1Sold effective December 31, 2009. Power Gas 1Excluding trading operations, which are recognized net under IFRS. 25.4 billion of this is derived from jointly operated power stations. Own generation 130.4 billion kWh Other suppliers2 260.6 billion kWh Power procured 391.0 billion kWh Power supplied 378.0 billion kWh Procurement Sales volume Sales partners 105.9 billion kWh Wholesale market/ Energy Trading 150.5 billion kWh Industrial and commercial customers 75.3 billion kWh Residential and SME customers 46.3 billion kWh Transmission losses, pumped storage 13.0 billion kWh
  30. 30. 28 Central Europe Market Unit Location of Major Generation Assets As of December 31, 2009. Nuclear power station Hard-coal-fired power station Lignite-fired power station Oil-fired power station Gas-fired power station Waste incineration Hydroelectric power station Nether- lands Germany Hungary France Belgium
  31. 31. 29 Generation Capacity by Sources Attributable Power Generation Capacity1 MW 2009 2008 2007 2006 Nuclear 8,555 8,548 8,548 8,473 Hard coal 10,234 10,180 8,565 8,546 Lignite 921 1,314 1,314 1,315 Natural gas 4,852 4,356 5,258 5,118 Oil 1,095 1,145 1,145 1,153 Hydro 2,420 2,811 3,153 3,113 Others 329 395 216 214 Central Europe 28,407 28,749 28,479 28,172 Nuclear 8,555 8,548 8,548 8,473 Hard coal 6,272 7,475 7,466 7,461 Lignite 852 1,314 1,314 1,315 Natural gas 3,257 3,269 4,219 4,121 Oil 1,095 1,145 1,145 1,153 Hydro 2,373 2,811 3,153 3,113 Others 327 289 406 367 Germany 22,731 24,851 26,251 26,003 Hard coal 1,512 1,066 1,066 1,052 Natural gas 1,304 830 808 810 E.ON Benelux 2,816 1,902 1,880 1,868 Natural gas 228 230 95 95 Other 2 2 138 92 E.ON Hungary 230 232 233 187 Hard coal 2,451 1,531 Other 57 E.ON France 2,507 1,531 Other plants 123 233 115 114 1As of December 31, 2009.
  32. 32. 30 Central Europe Market Unit Generation Assets Lignite-fired Power Stations As of December 31, 2009 Shareholders Consolidation1 Net MW Central Europe share Start-up date% MW Buschhaus E.ON 2 352 100.0 352 1985 Schkopau E.ON/Saale Energie 1 900 55.6 500 1995 Total Germany 1,252 852 Other countries (<100 MW) 243 69 Total Central Europe 1,495 921 1Consolidation: 1 E.ON share • 2 Full consolidation • 3 Power procurement from non-consolidated jointly-owned power plants • 4 Operations responsibility only; not consolidated Gas-fired Power Stations As of December 31, 2009 Shareholders Consolidation2 Net MW Central Europe share Start-up date% MW Burghausen E.ON 4 120 100.0 120 2001 Franken I/1 E.ON 2 383 100.0 383 1973 Franken I/2 E.ON 2 440 100.0 440 1976 GKW Weser/Veltheim 4 GT E.ON/Stw. Bielefeld 2 400 66.7 267 1975 Huntorf E.ON 2 321 100.0 321 1977 Irsching 3 E.ON 2 415 100.0 415 1974 Jena-Süd E.ON/other 2 197 53 104 1996 Kirchlengern GT 1/2 E.ON/other 4 200 62.8 126 1980/2005 Kirchmöser E.ON 2 160 100.0 160 1994 Obernburg E.ON/other 4 100 50.0 50 1995 Staudinger 4 E.ON 2 622 100.0 622 1977 Others (<100 MW) 370 249 Total Germany 3,728 3,257 Galileïstraat E.ON 2 209 100.0 209 1988 RoCa 31 E.ON 2 220 100.0 220 1996 Den Haag E.ON 2 112 100.0 112 1982 Total Netherlands 842 842 Vilvoorde E.ON 2 385 100.0 376 2001 Others (<100 MW) 77 86 Total Belgium 462 462 Other countries (<100 MW) 354 291 Total Central Europe 5,386 4,852 1Power station operated by E.ON Benelux under long-term cross-border leasing arrangement. 2Consolidation: 1 E.ON share • 2 Full consolidation • 3 Power procurement from non-consolidated jointly-owned power plants • 4 Operations responsibility only; not consolidated Oil-fired Power Stations As of December 31, 2009 Shareholders Consolidation1 Net MW Central Europe share Start-up date% MW Ingolstadt 3 E.ON 2 386 100.0 386 1973 Ingolstadt 4 E.ON 2 386 100.0 386 1974 Others (<100 MW) 323 323 Total Central Europe 1,095 1,095 1Consolidation: 1 E.ON share • 2 Full consolidation • 3 Power procurement from non-consolidated jointly-owned power plants • 4 Operations responsibility only; not consolidated
  33. 33. 31 Hard-Coal-fired Power Stations As of December 31, 2009 Shareholders Consolidation3 Net MW Central Europe share Start-up date% MW Datteln 3 E.ON 2 113 100.0 113 1969 GKW Weser/Veltheim 3 E.ON/Stw. Bielefeld 2 303 66.7 202 1970 Heyden E.ON 2 875 100.0 875 1987 Kiel E.ON/Stw. Kiel 3 323 50.0 162 1970 Knepper C E.ON 2 345 100.0 345 1971 Rostock1 E.ON/RWE/VE 4 508 50.4 256 1994 Scholven B E.ON 2 345 100.0 345 1968 Scholven C E.ON 2 345 100.0 345 1969 Scholven D E.ON 2 345 100.0 345 1970 Scholven E E.ON 2 345 100.0 345 1971 Scholven F E.ON 2 676 100.0 676 1979 Shamrock E.ON 2 132 100.0 132 1957 Staudinger 1 E.ON 2 249 100.0 249 1965 Staudinger 3 E.ON 2 293 100.0 293 1970 Staudinger 5 E.ON 2 510 100.0 510 1992 Wilhelmshaven E.ON 2 757 100.0 757 1976 Others (<100 MW) 353 322 Total Germany 6,817 6,272 Maasvlakte 12 E.ON 2 531 100.0 531 1988 Maasvlakte 22 E.ON 2 531 100.0 531 1987 Total Netherlands 1,062 1,062 Langerlo 1 E.ON 2 224 100.0 224 1975 Langerlo 2 E.ON 2 225 100.0 225 1975 Total Belgium 449 449 Emile Huchet 4 E.ON 2 115 100.0 115 1959 Emile Huchet 5 E.ON 2 330 100.0 330 1973 Emile Huchet 6 E.ON 2 600 100.0 600 1981 Hornaing 3 E.ON 2 240 100.0 240 1970 Lucy 3 E.ON 2 245 100.0 245 1971 Provence 4 E.ON 2 210 100.0 210 1967 Provence 5 E.ON 2 595 100.0 595 1984 Total France 2,335 2,335 Total 10,664 10,118 Other countries 166 116 Total Central Europe 10,830 10,234 1Sold effective to EnBW January 1, 2010. 2Power station operated by E.ON Benelux under long-term cross-border leasing arrangement. 3Consolidation: 1 E.ON share • 2 Full consolidation • 3 Power procurement from non-consolidated jointly-owned power plants • 4 Operations responsibility only; not consolidated
  34. 34. 32 Central Europe Market Unit Others (Waste, Wind, Biomass et al.)1 As of December 31, 2009 Total capacity net MW MW Waste 332 260 Wind, biomass et al. 109 69 Total Central Europe 441 329 1Information about our renewables operations is in the section of this report on our Climate & Renewables market unit starting on page 156. Generation Assets Hydroelectric Power Stations As of December 31, 2009 Shareholders Consolidation1 Net MW Central Europe share Start-up date% MW Braunau-Simbach E.ON/Verbund 3 100 50.0 50 1953 Happurg E.ON 2 160 100.0 160 1958 Jochenstein E.ON/Verbund 3 132 50.0 66 1955 Langenprozelten E.ON 2 164 100.0 164 1976 Walchensee E.ON 2 124 100.0 124 1924 Waldeck 2 E.ON 2 460 100.0 460 1974 Others (<100 MW) 1,486 1,349 Total Germany2 2,626 2,373 Other countries (<100 MW) 64 47 Total Central Europe 2,690 2,420 1Consolidation: 1 E.ON share • 2 Full consolidation • 3 Power procurement from non-consolidated jointly-owned power plants • 4 Operations responsibility only; not consolidated 2Information about our renewables operations is in the section of this report on our Climate & Renewables market unit starting on page 154. Nuclear Power Stations As of December 31, 2009 Shareholders Consolidation1 Net MW Central Europe share Start-up date% MW Brokdorf E.ON/VE 2 1,410 80.0 1,128 1986 Brunsbüttel E.ON/VE 3 771 33.3 257 1976 Emsland E.ON/RWE 3 1,329 12.5 166 1988 Grafenrheinfeld E.ON 2 1,275 100.0 1,275 1981 Grohnde E.ON/Stw. Bielefeld 2 1,360 83.3 1,133 1984 Gundremmingen B E.ON/RWE 1 1,284 25.0 321 1984 Gundremmingen C E.ON/RWE 1 1,288 25.0 322 1984 Isar 1 E.ON 2 878 100.0 878 1977 Isar 2 E.ON/SWM 1 1,410 75.0 1,058 1988 Krümmel E.ON/VE 3 1,346 50.0 673 1983 Unterweser E.ON 2 1,345 100.0 1,345 1978 Total Central Europe 13,696 8,555 1Consolidation: 1 E.ON share • 2 Full consolidation • 3 Power procurement from non-consolidated jointly-owned power plants • 4 Operations responsibility only; not consolidated
  35. 35. 33 Generation Output by Sources Power Generation Output1 GWh 2009 2008 2007 2006 Nuclear 63,313 62,062 62,214 62,766 Hard coal 40,250 45,388 42,461 39,839 Lignite 6,680 8,972 8,675 8,630 Oil/gas 8,669 9,503 9,293 8,411 Waste incineration 1,688 1,856 1,324 1,110 Hydro 6,872 7,777 7,281 7,292 Other renewables 1,128 1,256 1,775 1,599 Combined heat and power 1,628 1,458 1,466 1,629 Others 181 32 42 29 Central Europe 130,409 138,304 134,531 131,304 Nuclear 63,313 62,062 62,213 62,766 Hard coal 26,065 33,908 35,921 33,309 Lignite 6,380 8,717 8,435 8,563 Oil/gas 4,406 5,275 5,568 4,580 Waste incineration 1,688 1,856 1,324 1,110 Hydro 6,802 7,725 7,232 7,225 Other renewables 1,128 1,256 1,775 1,599 Combined heat and power 1,628 1,458 1,466 1,629 Others 1 2 43 29 Germany 111,411 122,259 123,977 120,808 Hard coal 6,919 7,211 6,540 6,531 Oil/gas 3,554 3,265 2,774 3,182 E.ON Benelux 10,473 10,476 9,314 9,713 Oil/gas 706 963 951 649 E.ON Hungary 706 963 951 649 Hard coal 7,266 4,269 Others 183 30 E.ON France 7,449 4,299 Lignite 300 255 240 67 Hydro 70 52 49 68 E.ON Czech 370 307 289 135 1As of December 31, 2009.
  36. 36. 34 Central Europe Market Unit Provisions for Nuclear Power Provisions for Nuclear Power € in billions 2009 2008 Non-contractual nuclear waste management obligations 9.09 9.16 Thereof advance payments made to the “Bundesamt für Strahlenschutz” -0.80 -0.79 Total 8.20 8.37 Contractual nuclear waste management obligations 3.86 3.74 Thereof advance payments made to waste management companies -0.03 -0.05 Total 3.83 3.69
  37. 37. 35 Transmission System1 of E.ON Netz2 Europe Total grid length: 43,000 km E.ON Energie Group in Germany (including 110 kV lines of regional utilities). Key Figures E.ON Netz 2009 Customers 244 grid customers1 Customers 290 traders Area 140,000 km2 1E.g. regional or local energy distributors, major industry, power plants. 2As of December 31, 2008. Power Transmission System Length 2009 Kilometers 380 kV 220 kV 110 kV1 E.ON Netz GmbH 5,747 4,921 21,950 Germany 18,600 17,400 75,200 1The 110 kV is not depicted in the graphic. 1Sold effective December 31, 2009. 2As of December 31, 2008. Vattenfall Europe Transmission (VET) RWE Transportnetz Strom RWE Transportnetz Strom EnBW Transportnetze Company Headquarters Operating center (BZ) Main control center Substation Netherlands Denmark Sweden Lehrte Bamberg Bayreuth Czech Republic Austria Austria Dachau
  38. 38. 36 Central Europe Market Unit Integration of Wind Energy into the Grid Total installed capacity of wind power in Germany E.ON control zone Other control zone Wind Power Boom in Germany 1995 2000 2002 2004 2005 2006 2010 2015 2020 1,100 6,100 11,900 16,394 18,286 20,432 30,000 36,000 48,000 MW 40,000 30,000 20,000 10,000 Source: ISET, ENE, dena.
  39. 39. 37 Europe Distribution System in the German Power Market Central Europe—Major Shareholdings As of December 31, 2009 % E.ON Hanse AG 73.8 E.ON Westfalen Weser AG 62.8 E.ON Mitte AG 73.3 E.ON edis AG 70.2 E.ON Avacon AG 65.8 TEN Thüringer Energienetze GmbH 53.0 E.ON Bayern AG 100.0 E.ON Mitte AG E.ON Westfalen Weser AG E.ON Hanse AG E.ON Bayern AG TEN Thüringer Energienetz GmbH E.ON Avacon AG E.ON edis AG
  40. 40. 38 Central Europe Market Unit Europe Distribution System in the German Gas Market Central Europe—Major Shareholdings As of December 31, 2009 % E.ON Hanse AG 73.8 E.ON Westfalen Weser AG 62.8 E.ON Mitte AG 73.3 E.ON edis AG 70.2 E.ON Avacon AG 65.8 TEN Thüringer Energienetze GmbH 53.0 E.ON Bayern AG 100.0 E.ON Mitte AG E.ON Westfalen Weser AG E.ON Hanse AG E.ON Bayern AG TEN Thüringer Energienetz GmbH E.ON Avacon AG E.ON edis AG Majority shareholdings Gas supply of E.ON Hanse in the supply area of E.ON edis
  41. 41. 39 Europe Activities in the German Sales Market—Power Central Europe—Major Shareholdings Power As of December 31, 2009 % E WIE EINFACH Strom & Gas GmbH 100.0 E.ON Vertrieb Deutschland GmbH 84.6 Key Figures Power As of December 31, 2009 Central Europe shareholdings Overall market2 Power supplied 297.3 billion kWh1 555 billion kWh Customers 7 million 45 million Transmission system3 length (220/380 kV) 10,600 km 111,200 km4 Generation capacity 22,731 MW 138,424 MW Generation output 111.4 billion kWh 490 billion kWh 1Including sale of power of E.ON Energy Sales (EES) in other European countries. 2Source: BDEW; data is only available for former years. 3Sold effective December 31, 2009. 4Including 110 kV. E WIE EINFACH E.ON Vertrieb Deutschland Munich Cologne
  42. 42. 40 Central Europe Market Unit Europe Activities in the German Sales Market—Gas Key Figures Gas As of December 31, 2009 Central Europe shareholdings1 Overall market Gas supplied 92.0 billion kWh 922.2 billion kWh Customers 1 million 19.1 million2 1Consolidated shareholdings >50.0 percent. 2Source: eurogas; data is only available for fomer years. Central Europe—Major Shareholdings Gas As of December 31, 2009 % E WIE EINFACH Strom & Gas GmbH 100.0 E.ON Vertrieb Deutschland GmbH 84.6 E WIE EINFACH E.ON Vertrieb Deutschland Munich Cologne
  43. 43. 41 Europe Activities in Benelux Central Europe—Shareholdings As of December 31, 2009 % E.ON Benelux 100.0 Key Figures Power and Gas As of December 31, 2009 Central Europe shareholdings Overall market1 Power supplied1, 2 24.0 billion kWh 95 billion kWh Customers 0.31 million 8.0 million Generation capacity 2,816 MWel 20,904 MWel Generation output 10.5 billion kWh 96 billion kWh Gas supplied 5.6 billion kWh – Gas customers 0.17 million – 1Source: BDEW; data is only available for former years. 2Only retail business. Leiden 83 MW Den Haag 112 MW UCML 70 MW Maasvlakte 1,062 MW Galileïstraat 209 MW Delft 93 MW RoCa 269 MW Vilvoorde 385 MW Langerlo 556 MW Gas-fired power station Hard-coal-fired power station Netherlands Belgium Luxembourg
  44. 44. 42 Central Europe Market Unit Key Figures As of December 31, 2009 France2 Overall market1 Power supplied2 20.2 billion kWh 446 billion kWh Attributable generation capacity 2,335 MW 120.3 GW Generation output2 7.5 billion kWh 519 billion kWh Gas supplied 9.1 billion kWh 529 billion kWh Customers 2032 35 million 1Source: CRE. 2Industrial customers. Activities in France Europe Hard-coal-fired power station Paris 240 MW Hornaing 1,045 MW Emile Huchet 245 MW Lucy 805 MW Gardanne
  45. 45. 43 Europe Activities in Switzerland Minority shareholding ≥20 percent Key Figures As of December 31, 2009 Central Europe shareholdings1 Overall market3 Power supplied2 8.1 billion kWh 58.7 billion kWh Customers 0.3 million 4.0 million Transmission system length 763 km 13,400 km Generation capacity 2,465 MW 17,100 MW 1Source: BKW. Figures not consolidated into E.ON Group. 2In Switzerland. 3As of December 31, 2008. E.ON Energie—Shareholdings As of December 31, 2009 % BKW 21.01 1Equity interest 21.0 percent, voting interest 20.0 percent. BKW 21%
  46. 46. 44 Central Europe Market Unit Europe Central Europe East—Activities in the Power Market Majority shareholdings Minority shareholdings ≥20 percent; management by E.ON Slovakia Hungary Czech Republic Romania Bulgaria
  47. 47. 45 Key Figures Power1 As of December 31, 2009 Central Europe shareholdings2 Overall market3 Bulgaria 2008 2008 Power supplied 5.2 billion kWh 33 billion kWh Customers 1.1 million 4.6 million Transmission system length (≥110 kV) 34 km 14,610 km Generation capacity 0 MW 9,675 MW Romania 2009 2009 Power supplied 4.1 billion kWh 41.6 billion kWh Customers 1.39 million 8.76 million Transmission system length (≥110 kV) 3,952.3 km 9,028.8 km Generation capacity 0 MW 17,500 MW Slovakia 2009 2009 Power supplied 7.9 billion kWh 27 billion kWh Customers 1.0 million 2.3 million Transmission system length (≥110 kV) 2,758 km 9,357 km Generation capacity 1 MW 7,778 MW Czech Republic 2009 2009 Power supplied 12.8 billion kWh 60.5 billion kWh Customers 1.3 million 5.8 million Transmission system length (≥110 kV) 2,450 km 20,329 km Generation capacity 123 MW 17,700 MW Hungary 2009 2008 Power supplied 34.7 billion kWh 41 billion kWh Customers 5.5 million 5.2 million Transmission system length (≥110 kV) 4,492 km 10,787 km Generation capacity 230 MW 8,298 MW 1Key figures of all shareholdings > 20 percent as of December 31, 2008. 2Only power plants > 20 MW included. 3Overall market figures pro forma, as not all data available for 2009. Central Europe—Shareholdings Power As of December 31, 2009 % Bulgaria E.ON Bulgaria EAD (holding and services) 100.0 E.ON Bulgaria Grid AD 67.0 E.ON Bulgaria Sales AD 67.0 Romania E.ON România S.R.L. 20.41 E.ON Moldova Distributie S.A. 51.0 E.ON Moldova Furnizare S.A. 51.0 Slovakia E.ON Slovensko, a.s. 100.0 Západoslovenská Energetiká 40.0 Czech Republic E.ON Czech Holding AG 100.0 Teplárna Otrokovice, a.s. 66.0 E.ON Distribuce, a.s. (power and gas) 100.0 E.ON Energie, a.s. (power and gas) 100.0 E.ON Česká republika, s.r.o. 100.0 E.ON Trend s.r.o. 100.0 Teplárna Tábor, a.s. 51.0 E.ON Servisni, s.r.o. 100.0 Hungary E.ON Hungária Energetikai ZRt. 100.0 Debreceni Kombinált Ciklusú Erömü Kft. 100.0 Nyíregyházi Kombinált Ciklusú Erömü Kft. 100.0 E.ON Energiatermelö Kft. 100.0 E.ON Dél-dunántúli Áramhálózati ZRt. 100.0 E.ON Észak-dunántúli Áramhálózati ZRt. 100.0 E.ON Tiszántúli Áramhálózati ZRt. 100.0 E.ON Energiaszolgáltató Kft. 100.0 E.ON Hálózati Szolgáltató Kft. 100.0 E.ON Ügyfélszolgálati Kft. 100.0 E.ON Gazdasági Szolgáltató Kft. 100.0 1Additional 69.8% held by E.ON Ruhrgas International.
  48. 48. 46 Central Europe Market Unit Europe Central Europe East—Activities in the Gas Market Key Figures Gas As of December 31, 2009 Central Europe shareholdings Overall market1 Czech Republic Gas supplied 4.0 billion kWh 93.8 billion kWh1 Customers 0.1 million 2.8 million Hungary Natural gas supplied 9.9 billion kWh 130 billion kWh2 Customers 0.6 million 3.5 million Romania Gas supplied 25.6 billion kWh 140.1 billion kWh Customers 1.5 million 2.6 million 1Source: eurogas. 2Data 2008. Central Europe—Shareholdings Gas As of December 31, 2009 % Czech Republic E.ON Distribuce, a.s. (power and gas) 100.0 E.ON Energie, a.s. (power and gas) 100.0 E.ON Česká republika, s.r.o. 100.0 Prazská Plynárenská, a.s. 49.0 Hungary E.ON Dél-dunántúli Gázhálózati ZRt. (DDGÁZ) 99.9 E.ON Közép-dunántúli Gázhálózati ZRt. (KÖGÁZ) 99.9 Romania E.ON Gas Distributie S.A.1 51.0 E.ON Gas România1 51.0 1Since December 31, 2008. Majority shareholdings Minority shareholdings ≥20 percent 1PP share of 49 percent but consolidation is pursued according to new corporation contract with the town of Prague since January 1, 2010. PP1 Slovakia Hungary Czech Republic Romania Bulgaria
  49. 49. 47 Power Customers in Europe Customers in millions Total: approx. 17.0 Direct- and Indirect-Access Customers approx. 1.7 Indirect-access customers in Germany via companies with shareholdings >20.0% approx. 1.3 Indirect-access customers outside Germany via companies with shareholdings >20.0% Direct-access customers in Germany (consolidated Group companies) Direct-access customers outside Germany approx. 7.6 approx. 6.5
  50. 50. 48 Central Europe Market Unit Composition of Power Prices in Germany ct/kWh Average price for households: 23.69 13.89 Procurement, grid access fee, energy data management, and sales 3.78 VAT 2.05 Power Tax 1.79 Concession fee2 2.18 CHP&RenewablesAct 1Power supplied to households; annual sales volume 3,500 kWh as of spring 2010. 2Concession fees vary from city to city depending on number of residents. Source: BDEW. Average Power Price for Households1 Power generation, transmission and supply CHP Act Power Tax Renewable Energies Act Concession fee Average Power Price for Industrial Customers1 2000 6.05 2001 6.47 2002 6.86 2003 7.98 2004 8.92 2005 9.73 2006 11.53 2007 11.41 2008 2009 20102 13.25 11.40 11.44 ct/kWh 12 10 8 6 4 2 1Supply at medium voltage level. Demand of 100 kW/1,600 h to 4,000 kW/5,000 h. 2As of spring 2010. Sources: VEA, BDEW. 0.26 0.13 0.20 5.46 0.31 0.11 0.19 0.24 5.62 0.36 0.11 0.05 0.35 5.99 1.23 0.11 0.05 0.42 6.17 1.23 0.11 0.05 0.51 7.02 1.23 0.11 0.05 0.69 7.65 1.23 0.11 0.05 0.88 9.26 1.23 0.11 0.05 0.98 9.04 1.23 0.11 0.05 1.13 10.74 1.23 0.11 0.05 1.20 8.81 1.23 0.11 0.05 2.05 8.00
  51. 51. Generation, network, supply State burden 100% 80% 60% 40% 20% NorwayGermany Hungary Belgium Poland Czech RepublicRomania Power Price in Europe1 1Residential customers with annual consumption of 2,500–5,000 kWh. Source: Eurostat. 49 Composition of Power Prices Source: BDEW, 2009. Monthly power bill for a 3-person household (3,500 kWh/year) 20091999 67.7048.20 41.53 33.80 26.17 14.40 60.00 40.00 20.00 Taxes, Renewable Energies Act, CHP Act, Power Tax, Concession fee, VAT Generation, transport and supply Development of Power Prices for Average Household Customers in Germany
  52. 52. 50 Central Europe Market Unit Key Figures Central Europe Key Figures € in millions 2009 2008 +/- % Total sales 41,419 41,135 +0.7 Adjusted EBITDA 6,479 6,266 +3.4 Depreciation/amortization and write-downs -1,662 -1,546 +7.5 Adjusted EBIT 4,817 4,720 +2.1 Cash provided by operating activities 5,180 4,016 +29.0 Returns Capital employed 22,171 19,310 +14.8 ROCE 21.7% 24.4% -2.7 Cost of capital1 9.2% 9.2% 0.03 Power procurement2 Own generation 130.4 bn kWh 138.3 bn kWh -5.7 Purchases 260.6 bn kWh 251.4 bn kWh +3.7 from jointly owned power plants 5.4 bn kWh 4.5 bn kWh +20.0 Energy Trading/outside sources 255.2 bn kWh 246.9 bn kWh +3.4 Power procured 391.0 bn kWh 389.7 bn kWh +0.3 Station use, line loss, pumped storage hydro -13.0 bn kWh -13.5 bn kWh +3.7 Power sales 378.0 bn kWh 376.2 bn kWh +0.5 Power sales by customer segment Residential and small commercial 46.3 bn kWh 46.8 bn kWh -1.1 Industrial and large commercial 75.3 bn kWh 82.0 bn kWh -8.2 Sales partners 105.9 bn kWh 101.7 bn kWh +4.1 Wholesale market/Energy Trading 150.5 bn kWh 145.7 bn kWh +3.3 Installed attributable generating capacity 28,407 MW 28,479 MW -0.3 1Before taxes. 2In 2009, we deployed a new IT system across our company for gathering energy-related data and also modified our classification methods. 3Change in percentage points.
  53. 53. 51 Pan-European Gas Market Unit 52 Introduction 53 Market Overview Germany 54 Business Activities 55 E.ON Ruhrgas—Business Activities along the Gas Value Chain 55 E.ON Ruhrgas—2009 Sales 56 European Gas Imports Development 57 E.ON Ruhrgas—Gas Supply Structure by Country in 2009 58 E.ON Ruhrgas—Sales Volumes by Sectors 2009 59 E.ON Ruhrgas—2003–2009 Sales Abroad 59 European Gas Infrastructure 60 Liquefied Natural Gas (LNG) 61 Activities of E.ON Ruhrgas in LNG 62 LNG Flows to Europe 2008 vs. 2010 63 E.ON Ruhrgas International Shareholdings 65 E.ON Ruhrgas—Upstream Activities 66 E.ON Ruhrgas—Activities in Russia 67 Gas Production in Russia—Yuzhno Russkoye 68 E.ON Gastransport—Pipeline and Storage Joint Ventures 69 E.ON Gastransport—Pipelines in Germany 69 E.ON Gastransport—Transmission 70 E.ON Gastransport—Transport 71 E.ON Gas Storage 73 E.ON Ruhrgas—Involvement in the German Gas Market 74 German Natural Gas Consumption by Market Sector 74 Residential Heating Systems in Germany 75 E.ON Ruhrgas—Activities in Slovakia 76 E.ON Ruhrgas—Activities in Hungary 77 E.ON Ruhrgas—Activities in Romania 78 Key Figures
  54. 54. 52 Pan-European Gas Market Unit Introduction E.ON Ruhrgas is the lead company of the Pan-European Gas market unit and is responsible for all of E.ON’s non-retail gas activities in Europe. In terms of sales, E.ON Ruhrgas is one of the leading non-state-owned gas companies in Europe and the largest gas company in Germany. E.ON Ruhrgas’s principal business is the exploration and production, supply, transmis- sion, storage and sales of natural gas. E.ON Ruhrgas also holds numerous stakes in German and other European gas compa- nies, as well as a minority shareholding in Gazprom, Russia’s main natural gas exploration, production, transportation and marketing company. In 2009, the Pan-European Gas market unit recorded revenues of €20.6 billion and adjusted EBIT of €1.7 billion. In 2009, E.ON Ruhrgas entered into the following significant transactions: • In October 2009, E.ON finalized the acquisition of just under 25 percent of Yuzhno Russkoye, a natural gas field in Siberia, from Gazprom. Yuzhno Russkoye has more than 600 billion m3 of reserves, making it one of the world’s largest gas fields. • Production started at Rita field in the Southern North Sea in March 2009. Rita, in which E.ON has a 74-percent stake and is the operator, represents a significant tech- nical achievement: the first successful completion of a dual lateral well in a carboniferous reservoir in the U.K. continental shelf. Rita produces 200 million m3 of gas annu- ally for the U.K. market, enough to supply 100,000 homes. • In October 2009, a new production platform was secured to the seabed in 42 meters of water in Babbage gas field. Located in the Southern North Sea 80 km off the U.K. coasts, it is the first new platform to be operated by E.ON Ruhrgas. Babbage field, in which E.ON Ruhrgas owns a 47-percent stake, begins production in July 2010. • E.ON Ruhrgas expanded its LNG spot-cargo activities, securing attractively priced LNG to supply our markets and our gas-fired power plants in Spain. On the lique- faction side, E.ON Ruhrgas took on a leading role in a promising new LNG project in Equatorial Guinea. • In 2008, E.ON Gastransport and bayernets formed a company called NetConnectGermany (“NCG”) to create a joint market area. In 2009, the NCG market area was expanded to include the gas networks of ENI Gas Trans- port Deutschland, GRTgas Deutschland, and GVS Netz. This further simplifies transport for gas shippers, increases liquidity at NCG’s virtual trading point, and promotes competition in gas sales. • New gas storage capacity entered services at an E.ON Gas Storage facility in Zsana, Hungary, in December 2009. The expansion project, which took less than two years to complete, increased Zsana’s working gas capacity from 1.5 billion m3 to 2.1 billion m3, making it one of the biggest gas storage facilities in Central and Eastern Europe. • In December 2009, E.ON sold most of Thüga to Integra/ KOM9, a consortium of municipal utilities, for approximately €2.9 billion. Thüga’s stakes in GASAG Berliner Gaswerke, HEAG Südhessische Energie, Stadtwerke Duisburg, and Stadtwerke Karlsruhe have been excluded from the sale.
  55. 55. 53 Market Overview Germany 5 supra-regional long-distance companies Level 1 Gas consumption 895 billion kWh 10 regional long-distance gas companies Transmission companies Imports 916 billion kWh Domestic production 142 billion kWh Over 700 regional and local municipalities Distribution companies Sources: WEG Wirtschaftsverband Erdöl- und Erdgasgewinnung e. V., Statistisches Bundesamt, BMWi; January 2010. Pan-European Gas—Gas Markets with E.ON Core Presence Billion kWh Gas demand as of Dec. 31, 2009 Slovakia 75 billion kWh Hungary 125 billion kWh Romania 150 billion kWh Italy 890 billion kWh Germany 895 billion kWh Source: E.ON estimate.
  56. 56. 54 Pan-European Gas Market Unit Business Activities1 E.ON AG Pan-European Gas Market Unit E.ON Ruhrgas Non-regulated E.ON Ruhrgas Regulated E.ON Ruhrgas Others Exploration & Production • E.ON Ruhrgas Exploration & Produktion GmbH 100% • E.ON Ruhrgas UK Exploration & Production Ltd. 100% • E.ON Ruhrgas Norge AS 100% • ZAO Gazprom YRGM Develop- ment 100% • E.ON Ruhrgas E&P Exploration & Produktion Ägypten GmbH 100% • E.ON Ruhrgas E&P Exploration & Produktion Algerien GmbH 100% Transmission • E.ON Gas Grid GmbH 100% • E.ON Gastransport GmbH 100% • Marketing of transmission capacities/operation of pipeline network Storage • E.ON Gas Storage GmbH 100% • E.ON Földgáz Storage Zrt. 100% E.ON Ruhrgas International AG 100% • E.ON Földgáz Trade Zrt 100% • Approx. 25 energy shareholdings • Development and expansion of business activities in Europe Supply & Sales E.ON Ruhrgas AG 100% • Gas procurement • Gas sales • Network operation • Technical development, advice, service Regulated project companies and other companies • Construction and operation of high-pressure gas pipelines Non-regulated project companies and other companies • Worldwide design, construction and operation of pipeline sys- tems for the transportation, storage and distribution of gas, oil, products, water and slurries • Construction and operation of underground gas facilities • Laying and rental of fibre-optic cables for telecommunications companies OAO Gazprom 3.5% 1As of December 31, 2009.
  57. 57. 55 E.ON Ruhrgas—Business Activities along the Gas Value Chain E.ON Ruhrgas—2009 Sales Major market positions • E.ON Ruhrgas is the market leader in Germany with total gas sales of 609 billion kWh (2009). • E.ON Ruhrgas is among the leading gas companies in Europe. • Sound relationship with all major gas producers, above all in the Netherlands, Norway and Russia. • Strategic pipeline assets and transmission rights facilitate access to important sales markets in Europe. • Competence and expertise in pipeline operations as a basis for participation in other strategic pipeline projects. • E.ON Gas Storage subsidiary is among the leading storage operators in Europe. Upstream Midstream Downstream Production Transmission/Storage Supply/Wholesale Distribution Retail non-regulated regulated (Storage: different systems, e.g. in Germany no tariff regulation) 4.647 17.659 € in millions Sales by Business Other/ consolidation Regulated Non-regulated 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 –1.666
  58. 58. 56 Pan-European Gas Market Unit European Gas Imports Development Key challenges of European gas markets • The financial crisis currently leads to reduced gas demand and to temporary oversupply in the markets. • In the long run increasing gas demand and declining indigenous production require additional import sources that need to be developed in time. • Goal of EU liberalization policy to promote more open and competitive gas markets: e.g. remove bottlenecks in cross-border capacities, develop trading hubs. • Enhance security of supply (long-term supply contracts, additional infrastructure, further supply diversification opportunities through LNG). Billion m3 Gas Supply 1Of which: Qatar 4%, Egypt 1%, Trinidad 1%, Nigeria 2% (2009). Basis for imports: contracted volumes and prolongations. Demand forecast according to IEA World Energy Outlook 2009. 2009 13% 2020 24% 2030 25% LNG share in supplies 456 520 570 15% Domestic production 24% 38% 17% Norway 18% 20% 30% Russia 30%23% 12% Algeria 13% 10% 9% Other non-EU imports1 10% 9% 2% Advanced projects 2% 15% Future projects3%
  59. 59. 57 E.ON Ruhrgas—Gas Supply Structure by Country in 2009 Long-term import contracts secure gas supplies • In order to provide a sound basis for gas supplies, E.ON Ruhrgas concludes long-term agreements with producers and relies on a diversified portfolio of purchase sources. • Long-term take-or-pay commitments enable the producers to invest the billions required to develop new gas fields and lay the pipelines to connect them to the transmission infrastructure. • At the same time, these commitments are the foundation for ensuring long-term supplies of gas at competitive prices in the purchasing countries. • This fair balance of risks is a sound basis for cooperation in a spirit of trust and in the interests of both parties. Billion kWh Total: 624.1 billion kWh 134.4 Germany 93.1 Netherlands 17.7 Denmark 47.8 Others1 Norway 166.8 Russia 164.3 E.ON Ruhrgas—Gas Supplies by Country 1Belgium, Spain, Hungary, Italy, U.K., Austria, France.
  60. 60. 58 Pan-European Gas Market Unit E.ON Ruhrgas—Sales Volumes by Sectors 2009 Contractual flexibility • Most customers buy all the gas they need from E.ON Ruhrgas under flexible contracts. • E.ON Ruhrgas structures its gas deliveries to the distri- bution companies flexible enough so that they are able to meet the fluctuations in demand due to rises and falls in temperature. • This flexibility can be provided based on the contractual flexibility of the E.ON Ruhrgas supply portfolio and the underground storage facilities. E.ON Ruhrgas Contracts 1,601 Points of supply 2,070 Breakdown of natural gas sales 42% 22% 13% 23% Number of customers/countries 14 customers 103 customers 152 customers 13 countries Regional distributors Local utilities Industrial customers Sales abroad Prices • Gas prices are based on competing fuels (mainly gas oil). • The gas prices follow the development of gas oil prices with a certain time lag. • The gas prices for the distribution and industrial customers of E.ON Ruhrgas are adjusted automatically at pre-deter- mined intervals in accordance with the price adjustment clauses agreed in the contracts.
  61. 61. 59 Lisbon Sines Huelva Córdoba Madrid Valencia Bilbao Barcelona Lyon Paris Bern Brussels Essen Prague Vienna Rovigo Ljubljana Zagreb Belgrade Sofia Istanbul Brindisi Rome Athens TunisSkikdaAlgiers Arzew Bucharest La Spezia Krk Bratislava Budapest Isle of Grain London Emden Ecofisk Tyra Dublin Belfast Sleipner Heimdal Frigg Troll Kollsnes Oseberg Karsto Oslo Stockholm Helsinki St. Petersburg Minsk WarsawBerlin Wilhelmshaven Copenhagen Stavanger Statfjord Gullfaks Milford Haven Zeebrugge Montoir Fos-sur-Mer Cartagena El Ferrol E.ON Ruhrgas—2003–2009 Sales Abroad European Gas Infrastructure LNG regasification terminals existing planned/under construction Pipelines existing planned/under construction Gas field Billion kWh 65 2003 2009 146 150 100 50 E.ON Ruhrgas—2003–2009 Sales Abroad 88 2004 135 2005 160 2006 2007 180 2008 175
  62. 62. 60 Pan-European Gas Market Unit Liquefied Natural Gas (LNG) Options Strong projected growth in global LNG demand which gives E.ON opportunity to: • Diversify gas supply portfolio through long-term and spot LNG supply contracts and regasification capacity in E.ON’s target markets. • Build up an integrated LNG position including upstream. Value chain Equity gas Liquefaction Transport by ship Regasification Markets Percentages Source: E.ON Ruhrgas. 10 LNG 90 Pipeline gas LNG—Natural Gas Supplies to EU30 and Share in 2009 Percentages Source: E.ON Ruhrgas. 24 LNG 76 Pipeline gas LNG—Natural Gas Supplies to EU30 and Share in 2020
  63. 63. 61 Activities of E.ON Ruhrgas in LNG E.ON is actively developing all parts of the LNG value chain. The global market for LNG is highly competitive. E.ON is com- peting with players from all over the world, e.g. utilities and international oil and gas companies. Supply Key task of E.ON Ruhrgas in the LNG business is to purchase LNG volumes and optimize LNG supply. The current geographical focus for securing LNG supplies is the Middle East and Africa. In these regions E.ON Ruhrgas is active in: • Establishing contacts and building relevant relationships with stakeholders. • Analyzing and exploring E&P potential. • Discussing with potential upstream and liquefaction partners. • Negotiating Sales and Purchase Agreements (SPAs) with potential suppliers of LNG. Integrated LNG projects • E.ON Ruhrgas has been selected as lead investor (25%) for a gas gathering project in Equatorial Guinea which sets out to fulfil the prerequisites for developing a new integrated natural gas liquefaction project in that country. • In Nigeria, E.ON Ruhrgas has been prequalified as a core investor in the southeastern concession area of the Nige- rian Gas Master Plan. Our strategic objective is develop- ing LNG export schemes while at the same time addressing domestic infrastructure needs. Shipping Focusing on competitive transportation costs combined with high HSE1 and reliability standards, E.ON is preparing to secure needed shipping capacity for fob2 volumes under long-term SPAs and for short-term spot or trading cargoes. Regasification E.ON Ruhrgas is currently managing strategically important regasification assets all over Europe: • Isle of Grain Terminal (U.K.): contracted annual capacity of 1.7 billion m³/year for the duration of 19 years starting end of 2010. • Gate Terminal (Netherlands) contracted annual capacity of 3 billion m³ for the duration of 20 years starting end of 2011. • OLT Offshore LNG Toscana (Italy): majority shareholder in a consortium with Iride, Golar LNG and OLT-Energy to build and operate a FSRU (floating storage and regasifi- cation unit) 22 km offshore Livorno with a capacity of 3.75 billion m³/year starting end of 2011. • Wilhelmshaven (Germany): majority shareholder in DFTG (Deutsche Flüssigerdgas Terminal Gesellschaft); the project remains a value mid-/long-term option for further expanding our regas portfolio. • Isle of Krk (Croatia): majority shareholder in a consortium (Adria LNG d.o.o.) with OMV, Total and Geoplin to build a regasification terminal with a capacity of 10 to 15 bil- lion m³/year; this project is at an early stage of project development. Trading Beside the long-term LNG supply contracts a global LNG spot market has emerged where regas capacities and arbitrage opportunities are being utilized. For E.ON, acquiring LNG spot cargoes allows for a quick entry into the market and to gain further operational experience. 1HSE—health, safety, environment. 2fob—free on board.
  64. 64. 62 Pan-European Gas Market Unit LNG Flows to Europe 2008 vs. 20101 LNG supplies 2008: 55.3 billion m3 Imports 2010: 94 billion m3 1In billion m3/year. 2Including 3.5 billion m3/year from Nigeria via Montoir for Enel/Italy. Source: Cedigaz. from Norway Isle of GrainMilford Haven Montoir Zeebrugge Rovigo La Spezia Fos-sur-Mer BilbaoEl Ferrol Sagunto Sines Huelva Cartagena Arzew Skikda Brindisi Marmara Ereglisi Revithoussa Marsa el Brega Aliaga from Egypt, Oman, Qatar, Yemen from Egypt, Oman, Qatar from Nigeria from Trinidad Barcelona 3.5 Enel 2.6 28.7 1.6 0.9 5.3 12.62 2.5 1.0 4 27 15 10 10 22 1 5
  65. 65. 63 E.ON Ruhrgas International Shareholdings As of December 31, 2009. Supply country Supplies/supply agreement Cooperation agreement Affiliate Office/station Lithuania Latvia Estonia Finland Russia Belarus Ukraine Romania Bulgaria Croatia Slovenia Austria Germany Luxembourg Belgium Netherlands Switzerland France Italy Liechtenstein Hungary Slovakia Czech Republic United Kingdom Poland Denmark Sweden Norway
  66. 66. 64 Pan-European Gas Market Unit E.ON Ruhrgas International Shareholdings E.ON Ruhrgas International Shareholdings outside Germany Shareholdings Country Share held % Gas sales 2009 billion kWh Gasnor AS Norway 14.00 2.2 Swedegas AB1 Sweden 29.59 – Gasum Oy Finland 20.00 40.6 AS Eesti Gaas Estonia 33.66 6.5 JSC Latvijas Ga-ze Latvia 47.23 15.4 AB Lietuvos Dujos Lithuania 38.91 11.9 Rytu Skirstomieje Tinklai AB Lithuania 20.28 – Inwestycyjna Spólka Energetyczna Sp. z o.o. (IRB) Poland 50.00 – EUROPGAS a.s.2 Czech Republic 50.00 – Nafta a.s. Slovakia 40.45 1.1 SPP as3 Slovakia 24.50 61.65 E.ON Földgáz Trade ZRt. Hungary 100.00 107.0 Panrusgáz ZRt. Hungary 50.00 72.6 Colonia-Cluj-Napoca-Energie S.R.L. (CCNE) Romania 33.33 – S.C. Congaz S.A. Romania 28.59 3.2 E.ON România S.R.L.4 Romania 69.81 30.3 Ekopur d.o.o.5 Slovenia 100.00 – Holdigaz SA Switzerland 2.21 – Enovos S.A.6 Luxembourg 10.8 34.4 1Sold in February 2010. 2EUROPGAS a.s. holds 50.0 percent of SPP Bohemia a.s. and 48.18 percent of Moravské naftové doly a.s. (MND) in the Czech Republic. 3Via 50-percent shareholding in Slovak Gas Holding B.V. (the Netherlands). 4Steered and consolidated by E.ON Energie AG (20.36 percent); further shareholder: European Bank for Reconstruction and Development (EBRD), London (9.83 percent). 5Ekopur d.o.o. holds 7.1 percent of Geoplin d.o.o. in Slovenia. 6Enovos is the result of a merger between SOTEG, CEGEDEL, and Saar Ferngas which became effective as of January 23, 2009.
  67. 67. 65 E.ON Ruhrgas—Upstream Activities1 Norwegian Sea Central North Sea Southern North Sea Minke Hunter Ravenspurn North Johnston Rita Caister Norway U.K. 1Only fields in production by the end of 2009; therefore without Skarv. Europe Norwegian Sea Interest Njord 30% E.ON Ruhrgas Exploration & Production 2009 2008 2007 Gas U.K. 846 million m3 768 million m3 751 million m3 Norway 574 million m3 592 million m3 20 million m3 Total gas 1,420 million m3 1,360 million m3 771 million m3 Oil and liquids U.K. 2.4 million bbl 2.5 million bbl 2.9 million bbl Norway 3.1 million bbl 3.4 million bbl 2.1 million bbl Total oil and liquids 5.5 million bbl 5.9 million bbl 5.0 million bbl Total production 14.4 million boe 14.4 million boe 9.8 million boe Central North Sea Interest Elgin/Franklin 5.2% Scoter 12.0% West Franklin 5.2% Merganser 7.9% Glenelg 18.6% Southern North Sea Interest Rita 74.0% Ravenspurn North 28.8% Johnston 50.1% Hunter 79.0% Caister 40.0% Minke 42.7% Merganser Scoter Elgin Glenelg West Franklin Franklin
  68. 68. 66 Pan-European Gas Market Unit E.ON Ruhrgas—Activities in Russia Gazprom Group • Gas reserves 33.1 trillion m3 • Gas production1 462 billion m3 • Pipeline system1 159,500 km • Exports – Europe1 140 billion m3 – CIS and Baltic states 66 billion m3 1As of December 31, 2009. Source: Gazprom Investor Presentation, February 2010. Partnership with Gazprom • Russia is one of the main sources of natural gas for Europe. • E.ON Ruhrgas and Gazprom with long-standing partnership. • Long-term supply contracts running up to 2036. • E.ON Ruhrgas interest/direct and indirect 3.5 percent.
  69. 69. 67 Supergiant Giant (> 100 billion m3) Gas field Pipeline system existing pipelines planned pipelines • Start of production Q4/2007. • Proven and probable reserves of more than 600 billion m³ or at least 35 years of production. • Plateau production of approximately 25 billion m³/year. • Total investment for field development €2 billion. • E.ON interest participation of 25 percent. Gas Production in Russia—Yuzhno Russkoye Russia Surgut Noyabrsk Sergino Sveltyor Berezovo Salekhard Labytnangi Vorkuta Novyy Port Jamburg Dudinka Norilsk Urengoy Yuzhno Russkoye
  70. 70. 68 Pan-European Gas Market Unit E.ON Gastransport—Pipeline and Storage Joint Ventures Joint-venture pipelines: existing planned/in construction Joint-venture underground storage Europe Shareholdings1 Percentages (NETG) Nordrheinische Erdgastransportleitungsgesellschaft mbH & Co. KG, Haan (Rhld.)2 50.00 (METG) Mittelrheinische Erdgastransportleitungsgesellschaft mbH, Haan (Rhld.)2 100.00 (TENP) Trans Europa Naturgas Pipeline GmbH & Co. KG, Essen2 51.00 MEGAL Mittel-Europäische Gasleitungsgesellschaft mbH & Co. KG, Essen2 51.00 DEUDAN Deutsch/Dänische Erdgastransport-Gesellschaft mbH & Co. KG, Handewitt2 25.00 NETRA GmbH Norddeutsche Erdgas Transversale & Co. KG, Emstek2 40.60 GHG Gasspeicher Hannover Gesellschaft mbH, Hanover3 13.20 (EGL) Etzel Gas-Lager GmbH & Co. KG, Friedeburg-Etzel3 74.80 Transitgas AG, Zurich, Switzerland4 3.00 Baumgarten-Oberkappel Gasleitungsgesellschaft m.b.H., Vienna, Austria4, 5 15.00 (IUK) Interconnector (UK) Limited, London, United Kingdom4 15.09 BBL Company V.O.F., Groningen, Netherlands4 20.00 Nord Stream AG, Zug, Switzerland4 20.00 Tauerngasleitung Studien- und Planungsgesellschaft mbH (TGL), Wals, Austria4 45.00 E.ON Ruhrgas Nord Stream Anbindungsgesellschaft, Essen4, 6 100.00 1As of December 31, 2009. 2Held by E.ON Gastransport GmbH, Essen. 3Held by E.ON Gas Storage GmbH, Essen. 4Held by E.ON Ruhrgas AG, Essen. 5Holds the assets of the WAG West Austria Gasleitung via a financial lease agreement with OMV Gas. 6Has a 25-percent share in NEL and a 20-percent share in OPAL. Zeebrugge Brussels Saarbrücken TENP SEL MEGAL Waidhaus Prague Passau WAG ViennaMunich Bern Milan Transitgas Wallbach NETG GHG Salzwedel Hamburg NEL Berlin Dresden OPAL DEUDAN Nord Stream Essen Emden Dornum NETRA EGL IUK BBL Bacton London METG
  71. 71. 69 E.ON Gastransport • E.ON Gastransport GmbH is a subsidiary of E.ON Ruhrgas AG and Germany‘s leading natural gas transmission company. • E.ON Gastransport operates Germany‘s largest and most complex natural gas pipeline system. • The business activities of E.ON Gastransport are subject to the regulation supervised by the Federal Network Agency. • Network operators E.ON Gastransport GmbH, bayernets GmbH, Eni Gas Transport Deutschland S.p.A. (ENI D), GRTgaz Deutschland GmbH and GVS Netz GmbH all com- bined their group H-gas market areas under the umbrella of NetConnect Germany GmbH & Co. KG (NCG) as of 1 October 2009, creating the largest natural gas market area in Germany. • NCG handles balancing group management, the provi- sion and operation of a virtual trading point, the online provision of billing and control energy data and control energy management. • The NCG web portal can also be used for concluding bal- ancing group contracts with E.ON Gastransport GmbH for E.ON Gastransport GmbH’s L-gas market area. E.ON Gastransport—Pipelines in Germany E.ON Ruhrgas Pipelines in Germany1 km Total Maintained by E.ON Ruhrgas AG Owned by E.ON Gastransport 6,498 6,428 Co-owned pipelines 1,805 602 DEUDAN (PC) 110 – EGL (PC) 67 67 MEGAL (PC) 1,092 1,092 METG (PC) 425 425 NETG (PC) 285 144 NETRA (PC) 341 106 TENP (PC) 998 998 Companies in which E.ON Ruhrgas AG holds a stake through its subsidiary ERI – 2,037 Owned by third parties – 1,043 Total in Germany 11,621 12,942 1As of December 31, 2009. (PC) project company.
  72. 72. 70 Pan-European Gas Market Unit E.ON Gastransport—Transport E.ON Gastransport pipeline system Europe Structural Data1 Length of transmission system 11,551 km Annual quantities offtaken 658.6 billion kWh Number of exit points 1,047 Simultaneous maximum annual offtake load 142.5 billion kWh2 1As of December 31, 2009. 2On December 15, 2009, 09.00 p.m. Note: Figures do not include volumes attributable to coke oven gas.
  73. 73. 71 Europe E.ON Gas Storage • E.ON Gas Storage, a wholly-owned subsidiary of E.ON Ruhrgas, bundles all E.ON storage activities and operates throughout Europe. E.ON Gas Storage Natural gas pipeline Compressor station Underground storage facility Other station Gas import point Compressor station with operation facility Flensburg Lübeck Zwickau Bamberg Hamburg Bremen Hanover Meppen Emsbüren Bielefeld Essen Bocholt Aachen Cologne Koblenz Trier Saarbrücken Karlsruhe Freiburg Stuttgart Nuremberg Regensburg Munich Frankfurt Giessen Winterberg Bremerhaven Etzel Empelde Stockstadt Hähnlein Sandhausen Inzenham-West Breitbrunn Bierwang Epe Krummhörn Berlin
  74. 74. 72 Pan-European Gas Market Unit E.ON Gas Storage E.ON Gas Storage GmbH’s Underground Gas Storage Facilities in Germany1 E.ON Gas Storage GmbH’s share in working capacity (million m3) E.ON Gas Storage GmbH’s share in maximum with- drawal rate (thou- sand m3/hour) E.ON Gas Storage GmbH’s share in storage facility or in the project company % Operated by E.ON Ruhrgas AG Bierwang3 E.ON Gas Storage GmbH 1,441 1,200 100.0 Yes Empelde2 GHG Gasspeicher Hannover Gesellschaft mbH4 9,8 47 13.2 – Epe2 E.ON Gas Storage GmbH 1,870 2,900 100.0 Yes Eschenfelden3 E.ON Gas Storage GmbH/N-ERGIE AG 48 87 66.7 Yes Etzel2 Etzel Gas-Lager GmbH&Co. KG4 807 987 74.8 – Hähnlein3 E.ON Gas Storage GmbH 80 100 100.0 Yes Krummhörn2, 5 E.ON Gas Storage GmbH – – 100.0 Yes Nüttermoor² EWE AG 110 248 Leased – Sandhausen3 E.ON Gas Storage GmbH/ Gasversorgung Süddeutschland GmbH 15 23 50.0 Yes Stockstadt3 E.ON Gas Storage GmbH 135 135 100.0 Yes Breitbrunn3 RWE Dea AG/ Exxon Mobil Gasspeicher Deutschland GmbH7/ E.ON Gas Storage GmbH8 9926 520 Leased7 Yes8 Inzenham- West3 RWE Dea AG 500 350 Leased – Total 6,007.8 6,597 1As of December 31, 2009. 2Salt cavern. 3Porous rock. 4Project company. 5Currently out of service for repairs/adjustments. 6992 million m3 is the current working gas capacity available to E.ON Ruhrgas AG. 7Underground section. 8Above-ground-part, particularly the storage compressor station.
  75. 75. 73 E.ON Ruhrgas—Involvement in the German Gas Market Natural gas pipeline Compressor station Underground storage facility Other station Gas import point Compressor station with operation facility Europe E.ON Ruhrgas International Shareholdings in Germany Percentages Share held Ferngas Nordbayern GmbH1 53.10 Gas-Union GmbH1 25.93 1Interest held via ERI’s wholly-owned subsidiary RGE Holding GmbH. Key Figures in 2009 E.ON Ruhrgas AG Overall market Market share Sales 4631 bn kWh 895 bn kWh 51.7% Pipeline systems2, 6 11,621 km 61,0004 km 19.0% Storage capacities3, 7 6.0 bn m3 20.35 bn m3 29.0% 1609.1 billion kWh including gas sales volume abroad and other volumes. 2Including co-owned pipelines and joint-venture pipelines. 3Working gas capacity. 4As of December 31, 2006. Source: BDEW-Gasstatistik, high- and mid-pressure networks. 5As of December 31, 2008. Source: LBEG Niedersächsisches Landesamt für Bergbau, Energie und Geologie. 6Hold by E.ON Gastransport GmbH, Essen. 7Hold by E.ON Gas Storage GmbH, Essen. Flensburg Lübeck Zwickau Bamberg Hamburg Bremen Hanover Bielefeld Aachen Karlsruhe Freiburg Munich Giessen Winterberg Bremerhaven Essen Bocholt Saarbrücken Trier Koblenz Frankfurt Stuttgart Nuremberg Regensburg Emsbüren Meppen Cologne Berlin
  76. 76. 74 Pan-European Gas Market Unit German Natural Gas Consumption by Market Sector Residential Heating Systems in Germany • Approximately 51 percent of new dwellings have a gas- fired heating system. • Over the years, gas has steadily increased its share of the residential space-heating market. • Today, gas is the most popular choice for heating homes. • The number of homes heated by gas has been steadily growing since the 1970s. This development is continuing. Today, 49 percent of the nearly 38 million homes in Germany use gas for heating and the trend is upwards. 45 Residential and commercial 25 Industrial 13 Others 17 Power stations Percentages Total: 895 billion kWh 12009. Source: preliminary figures 2009; AG Energiebilanzen. Gas Consumption by Sector1 20302009 19 2020 20 20 15 10 5 Million dwellings 20 Homes with a Gas-fired Heating System 48.7 Gas 29.8 Heating oil 12.6 District heating 6.0 Electricity 2.9 Solid fuels Percentages Total: 38.2 million Residential Heating Systems by Fuel
  77. 77. 75 E.ON Ruhrgas—Activities in Slovakia Shareholders of SPP • Slovak Gas Holding B.V. 49 percent plus management control (E.ON Ruhrgas International and GdF Suez 50 percent each). • Slovak state 51 percent, no management control. Europe Key Figures 2009 Sales 2.76 billion Gas sendout 5.8 billion m3 Customers 1.5 million Transit gas volume 66.0 billion m3 Employees (as of December 31, 2009) 5,146 Basis: 2009 annual reports, IFRS consolidated. Lan Hot Nové Mestro Plavecký Peter Nitra Nitra Zvolen Bystrica Lučenec Banská Prievidza Žilina Poprad Košice KošicePoprad Michalovce Velké Kapusany Transit network of eustream Compressor station of eustream High-pressure distribution network of SPP Distribucia Underground gas storage of Nafta/Pozagas Bratislava Bratislava Baum- garten Láb Komárno
  78. 78. 76 Pan-European Gas Market Unit Földgáz Storage Transmission networks MOL Transport E.ON Ruhrgas—Activities in Hungary Europe Key Figures 2009 E.ON Földgáz Trade E.ON Földgáz Storage Sales 2,838 million 173 million Gas sendout 10.4 billion m3 – Customers 43 11 Employees (Dec. 31) 47 169 Basis: HAS (Hungarian Accounting Standards). Budapest Total E.ON Földgáz Storage Peak cap.: 55.1 million m3/d Mobile: 4,230 million m3 Cushion gas: 4,654 million m3 Injection cap.: 32.2 million m3/d E.ON Földgáz Headquarter Hajdúszoboszló Peak cap.: 20.8 million m3/d Mobile: 1,440 million m3 Cushion gas: 2,410 million m3 Injection cap.: 10.3 million m3/d Pusztaederics Peak cap.: 3.1 million m3/d Mobile: 340 million m3 Cushion gas: 266 million m3 Injection cap.: 2.5 million m3/d Zsana Peak cap.: 28.0 million m3/d Mobile: 2,170 million m3 Cushion gas: 1,435 million m3 Injection cap.: 17.2 million m3/d Kardoskút Peak cap.: 3.2 million m3/d Mobile: 280 million m3 Cushion gas: 260 million m3 Injection cap.: 2.2 million m3/d
  79. 79. 77 E.ON Ruhrgas—Activities in Romania Shareholders of E.ON România S.R.L.1 • E.ON Ruhrgas: 69.8 percent. • E.ON Energie: 20.4 percent (steers and consolidates shareholding). • European Bank for Reconstruction and Development (EBRD): 9.8 percent. 1Holds, inter alia, 51 percent of E.ON Gaz România and E.ON Gaz Distributie, respectively. Other 49 percent of both companies is held by Romanian State. Europe Key Figures 2009 E.ON Gaz România E.ON Gaz Distributie Sales 603 million 171 million Gas sendout 2.4 billion m3 0.5 billion m3 Customers 1.47 million 1.47 million Employees (Dec. 31) 433 4,274 Source: RAS (Romanian Accounting Standards). Baia Mare Bihor Cluj Bistrița Suceava E.ON Gaz România and E.ON Gaz Distributie Headquarter E.ON România Headquarter Vaslui Bacău Harghita Mehedinti Dolj Mureș Tg. Mureș Alba Hunedoara Timișoara Pitești Brașov Fagaras Prahova Buzău Călărași Bucharest Targoviste Giurgiu Constanța Tulcea Galati Ialomita Vâlcea Gorj Sibiu Arad Storage Transmission pipeline (high-pressure pipeline of Transgaz) License area E.ON Gaz România and E.ON Gaz Distributie
  80. 80. 78 Pan-European Gas Market Unit Key Figures Pan-European Gas Key Figures  in millions 2009 2008 +/- % Sales 20,640 27,422 -25 Adjusted EBITDA 2,275 3,113 -27 Adjusted EBIT 1,754 2,631 -33 ROCE 9.9% 15.0% -5.11 Cost of capital 8.8% 8.8% – Value added 194 1,091 -82 Cash provided by operating activities 645 2,081 -69 Investments 1,610 1,215 +33 Employees (at year-end) 3,143 9,827 -6 1Change in percentage points.
  81. 81. E.ON Group 79 U.K. Market Unit 80 Introduction 80 Market Overview U.K. 81 Business Activities 82 2009 Sales 83 Activities in U.K. 84 Business Activities along the Value Chain 84 2009 Power Procurement and Sales Volume 86 Generation Assets 88 Regional Distribution 90 Supply Structure 90 Power and Gas Customers 91 Energy Services 92 Key Figures
  82. 82. 80 U.K. Market Unit Introduction Generation ~30 power operators Transmission 3 system operators Distribution 7 network operators covering 14 distribution areas Retail 6 major suppliers E.ON UK is one of the leading integrated power and gas com- panies in the United Kingdom. It was formed as one of the four successor companies to the former Central Electricity Generating Board as part of the privatization of the power industry in the United Kingdom in 1989. E.ON UK and its asso- ciated companies are actively involved in power generation, distribution, and retail. As of December 31, 2009, E.ON UK owned or through joint ventures had an attributable interest in 10,330 MW of generation capacity, including 359 MW of CHPs. E.ON UK served approximately 7.9 million electricity and gas customer accounts at December 31, 2009 and its Central Networks business served 5 million customer connections. The U.K. market unit sales amounted to €10.1 billion in 2009 and adjusted EBIT of €649 million. Market Overview U.K. U.K. Power and Gas Supply Billion kWh Supply1 Power 389.6 Gas 1,090.0 1As of December 31, 2008. 2009 figures not available as of the date of this document. Source: E.ON.
  83. 83. 81 Business Activities E.ON AG E.ON UK plc 100% Regulated Business1 Non-regulated Business Other/Consolidation Distribution (Central Networks) Central Networks East plc Central Networks West plc • Power distribution • New connections – Connection of both business and domestic customer to the power distribution network Generation • U.K.-based power generation plants fueled by coal, oil, gas E.ON UK CHP Ltd. • Operation and maintenance of combined heat and power plants Cottam Development Centre Ltd. • Power station operation Corby Power Ltd. • Power station operation Corporate Center Corporate functions • UK Finance • UK Information Technology • UK Human Resources • UK Services Retail E.ON Energy Ltd. • Sale of power and natural gas for residential, small and medium enterprises, industrial and commercial customers Energy Services E.ON UK Energy Services Ltd. • Providing meter installation, data retrieval & management services and providing home energy installations and repairs 1Subject to price control regulation.
  84. 84. 82 U.K. Market Unit Significant market positions • One of the U.K.’s leading national energy brands with about 7.9 million customer accounts (5.0 million electricity and 2.9 million gas). • Flexible generation position, well balanced against mass-market retail operations. • E.ON UK’s share of distribution network is 132,912 km, overall market is 780,482 km, giving a market share of 17.0 percent. • One of the leading U.K. CHP operators. 2009 Sales Sales by Business Units € in millions Regulated business 717 Non-regulated business 9,526 Other/consolidation -146 Total 10,097
  85. 85. 83 Activities in U.K. Power E.ON UK shareholdings Overall U.K. market Market share % Power supplied 78.0 billion kWh 389.6 billion kWh 20.0 of which own generation1 32.8 billion kWh 389.6 billion kWh 8.4 Customer accounts 5.0 million 28.8 million 17.4 Distribution network 132,912 km 780,428 km 17.0 Generation capacity 10.3 GW 83.5 GW2 12.3 1Excludes CHP and renewables generation. 2Official U.K. Government Figures for U.K. Plant Capacity have yet to be released for 2008 (figures based on prior year). Natural Gas E.ON UK shareholdings Overall U.K. market Market share % Sales 71.3 billion kWh1 1,090 billion kWh 6.5 Customer accounts 2.9 million 22.0 million 13.2 1Sales to industrial and commercial customers and sales to retain mass market customers. No sales to market/E.ON Energy Trading due to the transfer of gas contracts to Energy Trading during 2008. Europe Central Networks West Central Networks East Coal-fired power station Oil-fired power station Gas-fired power station CCGT power station
  86. 86. 84 U.K. Market Unit Business Activities along the Value Chain Upstream Downstream Generation Distribution Retail non-regulated regulated Power Gas 2009 Power Procurement and Sales Volume Own generation 32.8 billion kWh Other suppliers 48.8 billion kWh Power procured 81.6 billion kWh Power sales 78.0 billion kWh Procurement Sales volume Sales partners/ Wholesale market 34.3 billion kWh Industrial & commercial customers 16.4 billion kWh Private customers 27.3 billion kWh Transmission losses, other 3.6 billion kWh
  87. 87. 85 2009 Power Procurement and Sales Volume Power Generation by Energy Source MW 20091 2008 20072 20062 2005 Gas 3,5063 3,865 3,865 3,849 3,849 Coal 4,910 4,910 4,910 4,910 4,910 Other 1,9143 1,555 1,806 1,788 1,788 E.ON UK 10,330 10,330 10,581 10,547 10,547 Gas 34,019 34,019 33,878 33,913 32,848 Coal 23,137 23,137 23,008 22,882 22,627 Nuclear 10,979 10,979 10,979 10,969 11,852 Other 15,407 15,407 15,099 14,621 14,036 U.K. market overall 83,542 83,542 82,964 82,385 81,363 1Official U.K. Government Figures for U.K. Plant Capacity have yet to be released for 2009 (figures based on prior year). 2Prior-year figures have been updated in the latest UK Government release. 3CHP plants now included in “Other” instead of “Gas“. Generation Output GWh 20091 2008 20072 20062 20052 Gas 20,100 19,799 19,723 14,479 16,405 Coal 12,700 19,972 22,856 22,143 21,840 Other – 619 756 857 934 E.ON UK 32,800 40,390 43,335 37,480 39,179 Gas 176,749 176,749 165,784 140,828 152,642 Coal 125,315 125,315 136,545 149,214 134,637 Nuclear 52,486 52,486 63,028 75,451 81,618 Other 35,099 35,099 31,687 31,799 29,406 U.K. market overall 389,649 389,649 397,044 397,292 398,303 1Official U.K. Government Figures for UK electricity fuel use, generation and supply have yet to be released for 2009 (figures based on prior year). 2Prior-year figures have been updated in the latest UK Government release. E.ON U.K. Sales by Customer Segment1 Billion kWh 2009 2008 +/- % Power residential and SME 27.3 29.8 -8.4 Power I&C 16.4 17.6 -6.8 Power market sales 34.3 41.7 -17.7 Total power sales 78.0 89.1 -12.5 Gas residential and SME 52.8 54.7 -3.5 Gas I&C 18.5 21.4 -13.6 Gas market sales2 0.0 34.6 -100.0 Total gas sales 71.3 110.7 -35.7 1Excludes energy trading activities. 2Following the transfer of gas contracts to Energy Trading during 2008, gas sales to Energy Trading in 2009 are zero.

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