best practice business analyse (kam201302)

Business analyse Deutsche Essent

Deutsche Essent GmbH

Employees: ca. 2.500 * (consolidated)

Managing Directors: Paul van Son (Speaker), Dr. M.A.M. Boersma

Turnover: ca. 1,2 Mrd. Euro (2005)* (consolidated)

Deutsche Essent GmbH

Business areas:

Deutsche Essent GmbH covers all areas of the energy value chain and aims to further develop the core business. The focus of the Deutsche Essent is on transport and storage of natural gas and trade and distribution of Renewable Energy. In addition the Deutsche Essent is partner of municipal utilities.

Key Figures from 2005

· Turnover 6.3 billion euros· Electricity sales 36.04 billion kWh· Production capacity Approx. 6,000 MW· Gas sales 80 TWh (7.6 billion m3)· Electricity customers 2.5 million· Gas customers 1.9 million· "Groene Stroom" customers 0.8 million· Employees Approx. 11,250rgy supplier in North West

Europe

Essent Shareholding

Positioning of Deutsche Essent in the German media· Deutsche Essent GmbH based in Düsseldorf since

1999.· Is a holding company for the German shareholdings

of Essent N.V.· The company is pursuing a long-term growth

strategy. · It holds 51% of shares in swb AG in Bremen, 51% of

shares in the KOM-STROM AG in Leipzig and 100% of WINKRA-ENERGIE, based in Hanover.

Trends (1)

· Deutsche Essent is continuously expanding upon its market position in the electricity and gas sector, as well as in the market for renewable energy resources.

Trends (2)

· ESSENT EXPANDS WIND ENERGY PARKS IN GERMANY - it plans to construct wind energy parks with a total capacity of 138 MW in Germany in 2007.

Of these, seven wind energy parks with a total of 86 MW are to be erected in Lower-Saxony, and to be transferred to the ownership of an affiliate of the US investment company ArcLight Capital Partners, LLC

Trends (3)

· Deutsche Essent has secured one third of the planned capacity of the 800 MW at the ultra-modern gas fired power stations still under construction in Hürth, near Cologne and is planning to build further power stations in co-operation with public utilities.

· Essent is also involved in the construction of the LNG terminal in Eemshaven in the Netherlands.

Activities

· Active in the Natural gas market - via Novogate Novogate is a joint subsidiary of Deutsche Essent and Bayerngas GmbH. – Deutsche Essent has a gas storage in Epe.

· Essent Wind is a 100 % daughter company (Hanover and Zwolle) of Deutsche Essent GmbH and is responsible for all wind energy operations and developments within the Essent group. – With an installed load of about 480 MW, it is one of

the leading wind energy operators and developers in northwest Europe.

Activities(2)

· Essent wind - Installed capacity: 480 MW (2006 - for D + NL)

· Planning permission for 400 Offshore-MW in 2004

Activities (3)

· The generation of power from sustainable sources, such as wind energy, is part of the strategic core activity of Essent," explained Paul van Son, Managing Director of Deutsche Essent. "We are continuing to invest in expansion and, with an installed capacity of approximately 480 megawatts, 390 megawatt of which are in Germany, we are now one of the leading generators and suppliers in north western Europe."

Data on

German Electricity

Market

Energy demand, growth ratio

Electricity Generation (Mtoe)

1973 1990 1999 2000 20052010

32 47 47 49 4951

Electricity Consumption (Mtoe)

1973 1990 1999 2000 20052010

27 39 40 42 4345

Quelle: IEA Report Germany 2002

Electricity Generation (growth rates in % per year)*

73-90 90-00 00-05 05-10

2.3 0.4 0.0 0.8

Electricity Consumption (growth rates in % per year)

73-79 79-90 90-99 99-00 00-05 05-10

3.8 1.4 0.3 5.0 0.3 0.8Quelle: IEA Report Germany 2002* eigene Berechnung

Main energy sources(power generation)

Veränderung der Energieträgeranteile an derNetto-Stromerzeugung zwischen 1995 und 2005:

Kernenergie: − 4 %

Braunkohle: − 2 %

Steinkohle: − 5 %

Erdgas: + 5 %

Erneuerbare Energien: + 6 %

Heizöl, Pumpspeicher, Sonstige: ± 0 %

Strong/weak grid,

interconnection capacity

mentioned underSecurity of supply

Transitkapazitäten vs. Nettoströme (2006)

Quality of the energy system

(e.g. ageing)

Durchschnittliche Betriebsdauer aller Kraftwerke in Deutschlandab einer elektrischen Bruttoleistung von 100 MW (Stand: 31.12.2006)

total: 29 Jahre

Steinkohle: 54 Jahre

Wasser: 45 Jahre

Braunkohle: 32 Jahre

Gichtgas: 29 Jahre

Uran: 25 Jahre

Heizöl: 25 Jahre

Erdgas: 23 Jahre

Wind: 4 Jahre Quelle: eigene Berechnung aus Daten des Umweltbundesamtes

Main characteristicsof energy market

Electricity Market Germany


Quelle: emw 2006

Business Driversas not mentioned under Key Figures

Security of supply / fuel mix

mentioned underMain energy sources

Quelle: http://www.vdn-berlin.de/versorgungsqualitaet.asp

Quelle: VDE – Versorgungsqualität im deutschen Stromversorgungssystem 2006

Ageing assets / new capacity

(generation and grid)

mentioned underQuality of the energy system

Quelle: emw 2006

Gesamtstrombedarf für ca. 3 Jahre

Quelle: Bundesumweltministerium

Quelle: VKU

Investitionen der im VKU zusammengeschlossenen Betriebe

Quelle: VKU

Profitability (utilities, industry)

Beschäftigte UmsatzGewinn Umsatz-

(Mrd. €) (Mrd. €) rentabilität

E.ON (2006) 80.000 67,8 5,0 7,4 %

RWE (2006) 68.000 44,3 6,1 13,8 %

Vattenfall (2005) 18.000 13,7 1,1 8,0 %

EnBW (2005) 17.000 10,8 1,110,2 %

Stadtwerke (2006) 238.000 73,8 - -

Market regulation andprice control

Quelle: emw 2006

Environmental concern

Innovation

Stromerzeugung aus regenerativen Energiequellen

Brennstoffzelle

Geothermische Energie

Solarenergie

Windenergie

Wasserkraft

Biomasse

Customer care

(public image, quality of service, …)

Quelle: VDE – Versorgungsqualität im deutschen Stromversorgungssystem 2006

Quelle: emw 2006

Contribution of

Deutsche Essent

in the German Market.

Opportunities for

Deutsche Essent

In the German Market

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