Download - E.on Strategy and Keyfigures 2009
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Strategy & Key Figures 2009
E.ON Russia PowerMoscow
E.ON ItaliaMilan
E.ON U.S.Louisville
E.ON UKCoventry
E.ON NordicMalm
E.ON EnergieMunich
E.ON Climate & RenewablesDsseldorf
E.ON Energy TradingDsseldorf
E.ON RuhrgasEssen
E.ON AGDsseldorf
E.ON EspaaMadrid
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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
New Market Units
New Markets: Russia, Italy, Spain
Climate & Renewables Market Unit
Energy Trading Market Unit
3
4
6
21
53
81
95
111
127
128
146
164
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2E.ON Italia,
Milan
Italy MU
E.ON Nordic AB,
Malm
Nordic MU
E.ON Espaa,
Madrid
Spain MU
E.ON U.S. LLC,
Louisville
U.S. Midwest MU
E.ON Climate & Renewables GmbH,
Dsseldorf
Climate & Renewables MU
E.ON Energy Trading AG,
Dsseldorf
Energy Trading MU
E.ON Russia Power,
Moscow
Russia 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
Dsseldorf
Group Structure
MU = market unit.
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3E.ON Group
4 Strategy & Investment Plan 4 Strategic Direction
5 20092011 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
14 Share Buyback Program
15 Shareholders Structure
15 ADR Program
16 Operating Cash Flow and Funds from Operations
17 Financial Strategy
18 Fiunding Policy and Access to Debt Capital Markets
19 Debt Profile
19 E.ON Bond Maturity Profile
20 E.ON Bonds
E.O
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4 E.ON Group Strategy & Investment Plan
Strategic Direction
E.ON key beliefs about sustainable success in the energy industry
1. Presence along the entire value chainWere active along the entire value chain in power and gas,
with operations upstream (power generation and natural
gas production), midstream (energy imports and wholesale),
and downstream (end customer supply). This enables us to
operate efficiently and to capitalize on our comprehensive
market knowledge, in turn creating value across our businesses.
2. Power and gas convergencePower and gas markets are converging upstream (more gas-
fired generation), midstream (cross-commodity energy trad-
ing), and downstream (increasing popularity of dual-fuel
products). Our superb position in all three segments provides
us with synergy and growth potential.
3. Strong market positions In liberalized markets, scale and strong market positions give
us a key competitive edge and create a solid foundation for
ensuring security of supply.
4. GrowthIn the future, our markets in Northwestern Europe will grow
at moderate pace. Thats why were seizing opportunities for
above-average growth in Southern Europe and adjacent
regions like Russia.
5. Value from experienceOur extensive expertise in all facets of the energy business is
an invaluable competitive advantage, one that we leverage
fully by sharing best practices across our organization.
6. Market and competitionOpen, competitive markets are the best guarantee for energy
security and efficiency. An integrated European energy market
offers E.ON the best environment for expanding our market
positions and achieving organic growth in new regions.
For all our operations, we focus on selective investments and
acquisitions that meet our strict strategic and financial crite-
ria. We believe that you need a clear idea of where youre
going in order to get there.
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.ONs 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
Performto Win will deliver up to 1.5 billion EBIT by 2011. Port-
folio streamlining measures are expected to generate at
least 10 billion of divestment proceeds in 20092010. From
20092011, 30 billion investments are foreseen, of which
about two thirds are for growth, in particular generation,
renewables as well as gas upstream and supply.
Strategy & Investment Plan
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520092011 Investment Plan
in billions
12.76.6
6.1
2007
26.2
12.9
4.4
8.9
2008
~13~2.5~10
2009
~9
2010
~8
2011
20
10
Priorities Set for 20092011 Investment Plan
OGK-4, renewables
Statkraft
11.5 for Viesgo & selected Endesa assets
~60 bn of investments for 20072010 Expansion in renewables, Italy, Spain, France and
Russia completed Portfolio optimization initiated with Statkraft
asset swap Growing organic investments
~30 bn investment for 20092011 Around 9 bn of organic investments per year Around 2.5 bn of asset swaps (not cash-effective)
20072010 investment ambitions fulfi lled20092011 investments of ~30 bn confi rmed
~60 bn for 20072010
~30 bn for 20092011
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.ONs 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.
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6 E.ON Group Strategy & Investment Plan
Consolidated Balance Sheets
Key Figures
E.ON AG and Subsidiaries Consolidated Balance SheetsAssets
in millions
December 31
2008 2007
Goodwill 17,166 16,761
Intangible assets 6,749 4,284
Property, plant and equipment 56,526 48,552
Companies accounted for under the equity method 8,981 8,411
Other financial assets 8,823 21,478Equity investments 3,806 14,583Non-current securities 5,017 6,895
Financial receivables and other financial assets 2,451 2,449
Operating receivables and other operating assets 1,295 680
Income tax assets 1,988 2,034
Deferred tax assets 2,457 1,155
Non-current assets 106,436 105,804
Inventories 4,774 3,811
Financial receivables and other financial assets 2,101 1,515
Trade receivables and other operating assets 31,342 17,973
Income tax assets 1,515 539
Liquid funds 6,348 7,075Securities and fixed-term deposits 2,125 3,888Restricted cash and cash equivalents 552 300Cash and cash equivalents 3,671 2,887
Assets held for sale 4,529 577
Current assets 50,609 31,490
Total assets 157,045 137,294
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7E.ON AG and Subsidiaries Consolidated Balance SheetsEquity and Liabilities
in millions
December 31
2008 2007
Capital stock 2,001 1,734
Additional paid-in capital 13,741 11,825
Retained earnings 22,164 26,828
Accumulated other comprehensive income 110 10,656
Treasury shares 3,549 616
Reclassification related to put options on treasury shares 1,053
Equity attributable to shareholders of E.ON AG 34,467 49,374
Minority interests (before reclassification) 4,538 6,281
Reclassification related to put options 578 525
Minority interests 3,960 5,756
Equity 38,427 55,130
Financial liabilities 25,036 15,915
Operating liabilities 6,063 5,432
Income taxes 2,602 2,537
Provisions for pensions and similar obligations 3,559 2,890
Miscellaneous provisions 19,198 18,037
Deferred tax liabilities 6,515 7,555
Non-current liabilities 62,973 52,402
Financial liabilities 16,022 5,549
Trade payables and other operating liabilities 32,060 18,254
Income taxes 2,153 1,354
Miscellaneous provisions 4,260 3,992
Liabilities associated with assets held for sale 1,150 613
Current liabilities 55,645 29,762
Total equity and liabilities 157,045 137,294
Key
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8 E.ON Group Key Figures
Consolidated Statements of Income
E.ON AG and Subsidiaries Consolidated Statements of Income
in millions 2008 2007
Sales including electricity and energy taxes 88,885 70,761
Electricity and energy taxes 2,132 2,030
Sales 86,753 68,731
Changes in inventories (finished goods and work in progress) 27 22
Own work capitalized 526 517
Other operating income 15,454 7,776
Cost of materials 66,419 50,223
Personnel costs 5,130 4,597
Depreciation, amortization and impairment charges 6,890 3,194
Other operating expenses 20,337 9,724
Income/Loss () from companies accounted for under the equity method 962 1,147
Income/Loss () from continuing operations before financial results and income taxes 4,946 10,455
Financial results 2,351 772Income from equity investments 458 179Income from other securities, interest and similar income 1,159 1,035Interest and similar expenses 3,052 1,986
Income taxes 863 2,289
Income/Loss () from continuing operations 1,732 7,394
Income/Loss () from discontinued operations, net 128 330
Net income 1,604 7,724Attributable to shareholders of E.ON AG 1,266 7,204
Attributable to minority interests 338 520
Adjusted net income 5,598 5,115
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9Sales 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
670
4,720
770
4,670
239295Corporate Center
790
645Energy Trading
New Markets
388395
1,136922
2,5762,631
in millions 2007 (total: 9,208) 2008 (total: 9,878)
Adjusted EBIT
Central Europe
Pan-European Gas
U.K.
Nordic
U.S. Midwest
Energy Trading
New Markets
New MarketsCorporate Center
30,000 20,000 10,000 0 10,000 20,000 30,000 40,000
22,745
1,819
252
4,037
41,135
27,422
1,880
31,760
5,862
36,234
32,029
12,58411,051
3,3393,877
in millions 2007 (total: 68,731) 2008 (total: 86,753)
Sales
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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 2008 2007
Adjusted EBIT 9,878 9,208
Goodwill, intangible assets, and property, plant, and equipment 80,441 69,597
+ Shares in affiliated and associated companies and other share investments 12,787 22,994
+ Inventories 4,774 3,811
+ Accounts receivable 13,599 9,064
+ Other non-interest-bearing current assets, including deferred income and deferred tax assets 29,527 13,317
Non-interest-bearing provisions 7,784 9,807
Non-interest-bearing liabilities, including deferred expenses and deferred tax liabilities 50,543 31,349
Adjustments 1,664 9,692
Capital employed in continuing operations (at year-end) 81,137 67,935
Capital employed in continuing operations (annual average) 76,363 63,287
ROCE 12.9% 14.5%
Cost of capital 9.1% 9.1%
Value added 2,902 3,417
1Non-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.
2Capital 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.
3In 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 68,046 million, 80,949 million, and 83,746 million at March 31, June 30, and September 30, 2008, respectively.
ROCE and Value Added by Segment
in millions
Central Europe Pan-European Gas1 U.K. Nordic
2008 2007 2008 2007 2008 2007 2008 2007
Adjusted EBIT 4,720 4,670 2,631 2,576 922 1,136 770 670
Capital employed 19,310 18,943 17,594 17,130 10,101 12,368 6,948 6,886
= ROCE 24.4% 24.7% 15.0% 15.0% 9.1% 9.2% 11.1% 9.7%
Cost of capital 9.2% 9.3% 8.8% 8.8% 9.8% 9.5% 9.3% 8.8%
Value added 2,935 2,917 1,091 1,062 71 37 125 62
1Capital employed is adjusted to exclude the mark-to-market valuation of other share investments. This applies primarily to our shares in Gazprom.
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ROCE and Value Added by Segment (continued)
in millions
U.S. Midwest Energy Trading New Markets Corporate Center E.ON Group
2008 2007 2008 2007 2008 2007 2008 20072 2008 2007
Adjusted EBIT 395 388 645 90 295 232 9,878 9,208
Capital employed 6,537 6,780 868 15,596 591 1,180 76,363 63,287
= ROCE 6.0% 5.7% 74.3% 0.6% 12.9% 14.5%
Cost of capital 8.7% 7.8% 9.2% 10.4% 9.1% 9.1%
Value added 176 142 565 1,528 2,902 3,417
2For 2007, the Corporate Center segment also includes the New Markets segment.
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
2007 (total: 11,306, thereof outside Germany: 9,058) in millions 2008 (total: 18,406, thereof outside Germany: 15,415)
New Markets
Energy Trading
Corporate Center
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3,126 7,939
2,424
1,364
914
3,188
1,215
1,162
939
690650
2073,305
2,581
Cash-Effective Investments
Key
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12 E.ON Group Key Figures
Employees by Segment
2007 (total: 87,815) 2008 (total: 93,538)
16,786
5,826
3,110
44,142
17,480
5,804
2,977
885
44,051Central Europe
Pan-European Gas
U.K.
Nordic
U.S. Midwest
Energy Trading
5,4249,214New Markets
9,82712,214
New MarketsCorporate Center2
474474
Discontinuedoperations3
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,0001Figures do not include apprentices, managing directors, and board members.2Includes E.ON IS in 2008.3Contains WKE.
5593,054
Employees1
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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 ADR2 EONGY.PK ADR EONGY US
E.ON Stock Information
1 In the United States, E.ON shares trade in the over-the-counter market (OTC market) via ADR.
2OTC code.
E.ON Stock Key Figures1
per share 2004 2005 2006 2007 2008
Earnings attributable to the shareholders of E.ON AG 2.20 3.75 2.82 3.69 0.68
Earnings from adjusted net income 1.84 2.22 2.82 3.01
Dividend 0.78 0.92 1.12 1.37 1.50
Dividend payout ( in millions) 1,549 4,6142 2,210 2,560 2,857
Twelve-month high 22.35 29.64 34.80 48.69 50.93
Twelve-month low 16.42 21.50 27.37 32.02 23.50
Year-end closing price 22.35 29.13 34.28 48.53 28.44
Number of shares outstanding (in millions) 1,977 1,977 1,979 1,895 1,905
Market capitalization3 ( in billions) 44.2 57.6 67.6 92.0 54.2
Book value4 16.97 22.50 24.62 26.06 18.10
Market-to-book ratio5 (percentage) 132 129 139 186 157
E.ON stock trading volume6 ( in billions) 46.1 62.5 92.5 136.2 119.2
Trading volume of all German stocks ( in billions) 877.7 1,095.8 1,539.3 2,350.9 2,029.6E.ON stocks share of German trading volume (percentage) 5.3 5.7 6.0 5.8 5.9
1Adjusted for discontinued operations; figures prior to 2006 calculated according to U.S. GAAP.2Includes special dividend of 1.42 per share.3Based on ordinary shares outstanding.4Shares attributable to the shareholders of E.ON AG.5Year-end stock price expressed as a percentage of book value per share (excluding minority interests).6On all German stock exchanges, including Xetra.
per share
22.35 29.13 34.28 48.53 28.44
2004 2005 2006 2007 2008
40
30
20
10
Stock Price at Year-End
Weighting of E.ON Stock in Major Indices
As of December 30, 2008 %
DAX 10.38
Dow Jones EURO STOXX 50 4.14
Dow Jones STOXX Utilities 17.58
Key
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Dividend Policy
Commitment to payout ratio between 50 percent and 60 percent of adjusted net income
Ordinary dividend increased by 9.5 percent to 1.50 per share for 2008.
Since 2003 the dividend has increased by 17.5 percent per year on average.
Payout ratio 2008: 51 percent.
Share Buyback Program
In June 2007, E.ON began a 7 billion share buyback program
with the aim of making E.ONs capital structure more efficient.
E.ON repurchased about 3.5 billion worth of E.ON shares
in 2007 and another 3 billion between January 1 and Decem-
ber 3, 2008. Due to the ongoing financial crisis, E.ON decided
to suspend the share buyback to maintain the highest degree
of flexibility.
5149
Ordinary dividend Special dividend Payout ratio (%)
2.00
1.00
2003 2004 2005 2006 2007 2008
0.67 0.78 0.92 + 1.42 1.12 1.37 1.50
per share
Strong Increase of Dividends
47 4751
CAGR 17.5%
E.ON Group Key Figures
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Shareholders Structure
A current survey identified 93.3 percent of the free float.
According to the survey, institutional investors of 40 countries
hold 81.8 percent; retail shareholders hold 11.5 percent.
ADR Program
E.ON shares trade in the United States in the over-the-counter
market (OTC market) via ADR. The OTC code is EONGY.
E.ONs ADR program gives U.S. investors the opportunity to buy
E.ON shares and hold share certificates that are essentially
like American shares. ADR are quoted in dollars, a significant
advantage for U.S. investors. Dividends are also paid in dollars.
ADR holders have the same rights and obligations as ordinary
shareowners. They can attend and vote at Shareholders
Meetings, participate in profits, and receive information.
The price of one E.ON ADR matches that of one E.ON share.
Detailed information on E.ONs ADR program is available
from JPMorgan at www.adr.com.
Germany: 26.6% Outside Germany: 66.7%
Shareholders Structure1
26.5% USA & Canada2
14.9% U.K.2
5.8% France2
2.0% Switzerland2
6.7%
0.2%
11.3%
15.3%
4.4%
12.9%
1Based on free float of 1,904,530,366 shares.2Thomson Reuters (as of March 31, 2009).3Share register (as of May 31, 2009).
Not identified
Retail investorsoutside Germany3
Retail investorsGermany3
Germany3
Rest of World2
Rest of Europe2
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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 23 percent lower in 2008 than in 2007. The decrease was due to the
accumulation of emission rights positions at the Groups
trading operations, and to negative effects from the gas
storage usage at the Pan-European Gas market unit,
amongst other things.
E.ON Operating Cash Flow and Funds from Operations 2008
in millions 2008
Net income 1,604
Income from discontinued operations, net 128
Depreciation, amortization and impairment of intangible assets and of property, plant and equipment 6,890
Changes in provisions 635
Changes in deferred taxes 1,056
Other non-cash income and expenses 229
Gain/Loss on disposal of 1,407Intangible assets and property, plant and equipment 362Equity investments 877Securities (>3 months) 168
Changes in operating assets and liabilities and in income taxes 285Inventories 1,454Trade receivables 4,616Other operating receivables and income tax assets 10,172Trade payables 515Other operating liabilities and income taxes 15,442
Cash provided by operating activities of continuing operations (operating cash flow) 6,738
Changes in operating assets and liabilities and in income taxes 285
thereof changes in mark-to-market valuation of commodity derivatives (used to protect operating business, included mainly in other operating liabilities and income taxes) 2,176
Funds from Operations (FFO) 9,199
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Financial Strategy
We actively manage E.ONs capital structure. We use debt factor to continually monitorand if necessary, adjust
our capital structure. If our debt factor is significantly
above 3, strict investment discipline will be called for.
In the case of strategically important investments, we
would have to utilize alternative funding concepts in the
form of portfolio measures or capital increases. If it
becomes apparent that our debt factor will fall and remain
significantly below 3, we will return more capital to our
shareholders, for example through higher dividend pay-
ments or share buybacks. But we will always give priority
to value-enhancing investments.
Our target dividend payout ratio remains at between 50 and 60 percent of adjusted net income.
The E.ON Groups financial strategy has four key elements:
E.ONs target rating is single A flat/A2. This target rating allows for an efficient capital structure while ensuring our
access to financing.
To manage our capital structure we use a steering metric called 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.
Economic Net Debt
in millions
December 31
2008 2007
Liquid funds 6,348 7,075
Non-current securities 5,017 6,895
Total liquid funds and non-current securities 11,365 13,970
Financial liabilities to banks and third parties 39,095 19,357
Financial liabilities to Group companies 1,963 2,107
Total financial liabilities 41,058 21,464
Net financial position 29,693 7,494
Fair value (net) of currency derivatives used for financing transactions1 1,988 706
Provisions for pensions 3,559 2,890
Asset retirement obligations 14,839 15,034
Less prepayments to Swedish nuclear funds 1,157 1,280
Economic net debt 44,946 23,432
Adjusted EBITDA 13,385 12,450
Debt factor 3.4 1.9
Pro forma debt factor 3.2 1.9
1Does not include transactions relating to our operating business or asset management.
Key
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18 E.ON Group Key Figures
Funding Policy and Access to Debt Capital Markets
Funding policy
Our funding policy is designed to give E.ON access to a variety of funding resources at any time.
Generally, external funding is carried out by E.ON AG or via our Dutch finance subsidiary E.ON International
Finance B.V. under guarantee of E.ON AG, and the funds
are on-lent as needed 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 broadly balanced maturity profile.
Combining large-volume benchmark issues with smaller issues, promissory notes (Schuldscheindarle-
hen) or private placements that take advantage of
market opportunities as they arise.
Ready access to banks and debt capital markets
Committed syndicated credit line 7.5 billion, 364 days tranche, for general corporate
purposes (as of year-end 2008: no amounts outstanding).
5.0 billion, 5 years tranche (maturing in 2011), for general corporate purposes (as of year-end 2008: no
amounts outstanding).
Existing capital market programs 10 billion commercial paper program and US$10 billion
commercial paper program (as of year-end 2008:
7.3 billion equivalent outstanding under both programs).
30 billion debt issuance program (as of year-end 2008: 23.1 billion outstanding).
In the first quarter of 2009 E.ON issued 6.1 billion in new bonds denominated in euros, sterling, and Swiss francs.
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Debt Profile
in millions As of May 31, 2009
Maturity Profile of Outstanding Bonds of E.ON International Finance B.V. and E.ON AG
4,000
3,000
2,000
1,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+
Financial Liabilities to Banks and Third Parties
As of December 31, 2008 in billions
E.ON AG &E.ON International Finance B.V. Market units & other E.ON Group
Bonds 24.0 1.3 25.3
Commercial paper 7.3 7.3
Bank loans/others 2.8 3.7 6.5
Total 34.1 5.0 39.1
E.ON Bond Maturity Profile
The graph below shows the maturity profile of all bonds of
E.ON International Finance B.V. and E.ON AG.
Key
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20 E.ON Group Key Figures
E.ON Bonds
Issuer: E.ON International Finance B.V.1
CurrencyVolume in original currency (millions) Term in years Maturity Coupon (%)
EUR 1,000 2 25.11.2010 4.750
CHF 200 3 17.12.2010 3.000
CHF 500 2 25.02.2011 2.000
EUR 750 3 08.09.2011 5.000
EUR 750 2.5 30.11.2011 2,500
GBP 500 10 29.05.2012 6.375
CHF 2502 4 24.09.2012 3.250
EUR 1,750 5 02.10.2012 5.125
CHF 250 4 11.12.2012 3.875
EUR 750 4 26.03.2013 4.125
EUR 1,500 5 07.05.2013 5.125
CHF 300 5 07.05.2013 3.625
GBP 350 5 27.01.2014 5.125
EUR 1,750 5 28.01.2014 4.875
CHF 5253 5 11.02.2014 3.375
EUR 1,000 6 06.06.2014 5.250
CHF 225 7 17.12.2014 3.250
EUR 1,250 7 08.09.2015 5.250
EUR 1,500 7 19.01.2016 5.500
EUR 900 15 29.05.2017 6.375
EUR 2,3754 10 02.10.2017 5.500
USD 2,000 10 30.04.2018 5.800
GBP 600 12 30.10.2019 6.000
GBP 250 ~10.5 30.10.2019 6.000
EUR 1,4005 12 07.05.2020 5.750
GBP 9756 30 07.06.2032 6.375
GBP 900 30 30.10.2037 5.875
USD 1,000 30 30.04.2038 6.650
GBP 700 30 27.01.2039 6.750
1Listing: All bonds are listed in Luxembourg, except for CHF bonds which are listed at the SWX Swiss Exchange.2The bond was increased from an initial CHF200 million to CHF250 million.3The bond was increased from an initial CHF400 million to CHF525 million.4The bond was increased in two steps from an initial EUR1,750 million to EUR2,375 million.5The bond was increased from an initial EUR1,000 million to EUR1,400 million.6The bond was increased from an initial GBP850 million to GBP975 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.
In addition, E.ON AG and E.ON International Finance B.V.
have issued private placements with a total volume of
approximately 2.3 billion as well as promissory notes
(Schuldscheindarlehen) with a total volume of nearly
1.4 billion. Furthermore, E.ON AG issues commercial paper
on a regular basis.
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E.ON Group
21
Central EuropeMarket Unit
22 Introduction
23 Market Overview Germany
24 Business Activities
25 2008 Sales
26 Power and Gas Activities in Europe
27 Business Activities along the Value Chain
27 2008 Power Procurement and Sales Volume
28 Location of Major Generation Assets
29 Generation Capacity by Sources
30 Generation Output by Sources
31 Generation Assets
35 Provisions for Nuclear Power
36 Transmission System of E.ON Netz
37 German Power Imports and Exports
38 Integration of Wind Energy into the Grid
39 Distribution System in the German Power Market
40 Distribution System in the German Gas Market
41 Activities in the German Sales Market Power
42 Activities in the German Sales MarketGas
43 Activities in the Netherlands
44 Activities in France
45 Activities in Switzerland
46 Central Europe EastActivities in the Power Market
48 Central Europe EastActivities in the Gas Market
49 Power Customers in Europe
50 Composition of Power Prices in Germany
51 Composition of Power Prices
52 Key Figures
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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 41.1 billion,
33.3 billion of which was generated from German customers,
and an adjusted EBIT of 4.7 billion in 2008. E.ON Energies core
business consists of the ownership and operation of power
generation facilities, the transmission 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.
E.ON Energie is embarking on a significant program to build
new generating capacity in many of the countries in which it
operates:
In 2008, construction of the 800 MW natural gas plant at Livorno Ferraris, Italy, was completed. The power plant
has started commercial operations and has been trans-
ferred to the new Italy market unit.
Construction is underway on new facilities at Irsching, Germany (a 530 MW advanced natural gas plant to be
built in cooperation with Siemens AG, scheduled to
begin operations in 2011, and a new 800 MW combined-
cycle gas-fired plant, which is scheduled to begin opera-
tions in 2011), Datteln, Germany (a 1,100 MW hard coal
plant, scheduled to begin commercial operation in 2011)
and Maasvlakte, Netherlands (a 1,100 MW hard coal
plant, scheduled to begin operations in 2012).
Construction was also started on two 400 MW gas-fired combined-cycle power plants in Gny, Hungary, and
Malzenice, Slovakia, that are expected to start commer-
cial operation at the end of 2011 and beginning of 2010,
respectively.
Furthermore construction is underway on two new 400 MW gas-fired combined-cycle units on the power plant site
Emile Huchet, France, scheduled to begin commercial
operation in 2010.
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 harbor port of Antwerp, Belgium
(a 1,100 MW hard coal plant), if all requirements are met.
E.ON Energie also plans to build the worlds first large
coal-fired power plant with a target efficiency of more
than 50 percent and a capacity of about 550 MW in Wil-
helmshaven, Germany.
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Market Overview Germany
Customers
Local utilities Local utilities Local utilities >800
Number of companies
Major utilities 4
Large municipal utilities 24
Regional and national distributors 70
Source: BDEW 2006.
Central EuropeElectricity Market
Billion kWhPower supplied
as of Dec. 31, 2008
Germany 304
France 9
Benelux 25
Czech Republic 13
Slovakia 8
Hungary 16
Romania 4
Bulgaria 5
Central EuropeGas Market
Billion kWhGas supplied
as of Dec. 31, 2008
Germany 101
France 10
Benelux 3
Czech Republic 4
Hungary 12
Source: E.ON.
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24 Central Europe Market Unit
Business Activities1
1As of December 31, 2008.2Six of the seven regional utility companies (excluding E.ON Thringer Energie AG) own stakes of 10 percent each. 40 percent are directly held by E.ON Energie AG.
3The remaining 47.6 percent is held by E.ON Ruhrgas AG.4Managed by E.ON Energie; total share: 90.2 percent (69.8 percent held by E.ON Ruhrgas International AG).
5The 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 units activities Centralized strategic, controlling and service functions
E.ON AG
Central Europe West Non-regulated
Conventional Power PlantsE.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
Netherlands District heating in the Netherlands Sales of power and gas in the Netherlands
Socit Nationale dElectricit et de Thermique S.A. (SNET) (65%) Power generation by conventional power plants in France Sales of power in France
Nuclear Power PlantsE.ON Kernkraft GmbH (100%) Power generation by nuclear power plants
Hydroelectric Power PlantsE.ON Wasserkraft GmbH (100%) Power generation by hydroelectric power plants
Waste IncinerationE.ON Energy from Waste AG, formerly BKB AG, renamed in 2008 (100%) Energy generation from waste incineration
Sales of Electricity, Gas and HeatE.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 Thringer 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. (52.4%)3
Sales of electricity and gas in France via subsidiary E.ON Energie S.A.S.
Central Europe West Regulated
TransmissionE.ON Netz GmbH (100%) Operation of high-voltage grids (380 kilovolt110 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 Thringer Energienetze GmbH) across Germany (shareholding percentages range from 53% to 100%) Distribution of electricity and gas to retail customers
Central Europe East
E.ON Hungria 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 Romnia S.R.L. (20.4%)4
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 Slovenskos minority interest in those companies)
Other/Services
E.ON Engineering GmbH (57%)5
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
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25
2008 Sales
Significant Market Positions
One of Europes leading utility companies. A leading power supplier in Germany. Substantial position in Germanys gas distribution
market.
Strong position as international power supplier, active particularly in the Netherlands, France, Hungary, Czech
Republic, Bulgaria, Romania and Slovakia.
in billions Total: 41,135
Central EuropeSales 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
4.999
12.103
26.537
2.504
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26 Central Europe Market Unit
Power and Gas Activities in Europe
Key Figures Overall Market Power1
As of December 31, 2008Central Europeshareholdings Overall market2
Power supplied 376 billion kWh 791 billion kWh
Customers 19.0 million 76 million
Transmission system length (110 kV) 54,000 km 185,000 km
Attributable generation capacity 28,749 MW 179,000 MW
Generation output 138 billion kWh 600 billion kWh3
1Region Bulgaria, Czech Republic, Germany, Hungary, Netherlands, Romania, France. 2Some data for eastern Europe is only available for former years (without France).3Overall figures only Germany and Netherlands.
Key Figures Overall Market Gas
As of December 31, 2008Central Europe shareholdings Overall market1
Gas supplied 130 billion kWh 1,602 billion kWh
Customers 3 million 32 million
1Source eurogas (Czech Republic, Germany, Hungary, Netherlands).
Nether-lands
GermanyBelgium
CzechRepublic
Slovakia
Hungary
Romania
Bulgaria
France Switzerland
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Business Activities along the Value Chain
2008 Power Procurement and Sales Volume1
Upstream Midstream Downstream
Generation Transmission Distribution Retail
non-regulated regulated
PowerGas
1Excluding trading operations, which are recognized net under IFRS.24.5 billion of this is derived from jointly operated power stations.
Own generation
138.3 billion kWh
Other suppliers2
251.4 billion kWh
Power procured
389.7 billion kWh
Power supplied
376.2 billion kWh
Procurement Sales volume
Sales partners
101.7 billion kWh
Wholesale market/
Energy Trading
145.7 billion kWh
Industrial and
commercial customers
82.0 billion kWh
Residential and
SME customers
46.8 billion kWh
Transmission losses,
pumped storage
13.5 billion kWhC
entr
al E
urop
e M
arke
t U
nit
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28 Central Europe Market Unit
Location of Major Generation Assets
As of December 31, 2008.
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
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Generation Capacity by Sources
Attributable Power Generation Capacity1
MW 2008 2007 2006
Nuclear 8,548 8,548 8,473
Hard coal 10,180 8,565 8,546
Lignite 1,314 1,314 1,315
Natural gas 4,356 5,258 5,118
Oil 1,145 1,145 1,153
Hydro 2,811 3,153 3,113
Others 395 216 214
Central Europe 28,749 28,479 28,172
Nuclear 8,548 8,548 8,473
Hard coal 7,475 7,466 7,461
Lignite 1,314 1,314 1,315
Natural gas 3,269 4,219 4,121
Oil 1,145 1,145 1,153
Hydro 2,811 3,153 3,113
Others 289 406 367
Germany 24,851 26,251 26,003
Hard coal 1,066 1,066 1,052
Natural gas 830 808 810
Other renewables 6 6 6
E.ON Benelux 1,902 1,880 1,868
Oil/gas 230 95 95
Other 2 138 92
E.ON Hungary 232 233 187
Hard coal 1,531
E.ON France 1,531
Other plants 233 115 114
1As of December 31, 2008.
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Generation Output by Sources
Power Generation Output1
GWh 2008 2007 2006
Nuclear 62,062 62,214 62,766
Hard coal 45,388 42,461 39,839
Lignite 8,972 8,675 8,630
Oil/gas 9,503 9,293 8,411
Waste incineration 1,856 1,324 1,110
Hydro 7,777 7,281 7,292
Other renewables 1,256 1,775 1,599
Combined heat and power 1,458 1,466 1,629
Others 32 42 29
Central Europe 138,304 134,531 131,304
Nuclear 62,062 62,213 62,766
Hard coal 33,908 35,921 33,309
Lignite 8,717 8,435 8,563
Oil/gas 5,275 5,568 4,580
Waste incineration 1,856 1,324 1,110
Hydro 7,725 7,232 7,225
Other renewables 1,256 1,775 1,599
Combined heat and power 1,458 1,466 1,629
Others 2 43 29
Germany 122,259 123,977 120,808
Hard coal 7,211 6,540 6,531
Oil/gas 3,265 2,774 3,182
E.ON Benelux 10,476 9,314 9,713
Oil/gas 963 951 649
E.ON Hungary 963 951 649
Hard coal 4,269
Others 30
E.ON France 4,299
Lignite 255 240 67
Hydro 52 49 68
E.ON Czech 307 289 135
1As of December 31, 2008.
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Generation Assets
Lignite-fired Power Stations
As of December 31, 2008 Shareholders Consolidation Net MW
Central Europe share
Start-up date% MW
Buschhaus E.ON 2 352 100.0 352 1985
Lippendorf S E.ON/EnBW 1 891 50.0 446 1999
Schkopau E.ON/Saale Energie 1 900 55.6 500 1995
Others (
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32 Central Europe Market Unit
Generation Assets
Hard-Coal-fired Power Stations
As of December 31, 2008 Shareholders Consolidation Net MW
Central Europe share
Start-up date% MW
Bexbach 1 E.ON/Stw. Aachen 1 714 8.3 59 1983
Datteln 3 E.ON 2 113 100.0 113 1969
Farge E.ON 2 350 100.0 350 1969
GKW Weser/Veltheim 3 E.ON/Stw. Bielefeld 2 303 67.0 203 1970
Heyden E.ON 2 875 100.0 875 1987
Kiel E.ON/Stw. Kiel 2 323 50.0 162 1970
Knepper C E.ON 2 345 100.0 345 1971
Mehrum CE.ON/Stw. Hanover, Braunschw. Vers. AG 3 690 50.0 345 1979
Rostock 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
Zolling E.ON 2 449 100.0 449 1986
Others (
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Others (Waste, Wind, Biomass et al.)
As of December 31, 2008Total capacity
net MW MW
Waste 338 243
Wind, biomass et al. 90 54
Total 428 297
Hydroelectric Power Stations
As of December 31, 2008 Shareholders Consolidation 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 1 E.ON 2 135 100.0 135 1931
Waldeck 2 E.ON 2 460 100.0 460 1974
Others (
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34 Central Europe Market Unit
Generation Assets
Transferred to Statkraft by December 31, 2008
As of December 31, 2008
Central Europe
Start-up dateNet MW % MW
Emden 4 (gas-fired) 433 100 433 1972
Robert Frank 4 (gas-fired) 491 100 491 1973
Erzhausen (hydroelectric) 220 100 220 1964
Hydroelectric power plant
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Provisions for Nuclear Power
Provisions for Nuclear Power
in billions 2008 2007
Non-contractual nuclear waste management obligations 9.16 9.71
Thereof advance payments made to reprocessors and to other waste management companies 0.79 0.78
Total 8.37 8.93
Contractual nuclear waste management obligations 3.74 3.44
Thereof advance payments made to reprocessors and to other waste management companies 0.05 0.12
Total 3.69 3.32
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36 Central Europe Market Unit
Transmission System of E.ON Netz1
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 2008
Customers 244 grid customers1
Customers 290 traders
Area 140,000 km2
1E.g. regional or local energy distributors, major industry, power plants.
Power Transmission System Length 2008
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.
1As of December 31, 2008.
VattenfallEuropeTransmission(VET)
RWETransportnetzStrom
RWETransportnetzStrom
EnBWTransportnetze
Company HeadquartersOperating center (BZ)Main control centerSubstation
Nether lands
Denmark
Sweden
Lehrte
Bamberg
Bayreuth Czech Republic
Austria
Austria
Dachau
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German Power Imports and Exports
Europe
Source: BDEW, preliminary figures as of 2008.
Denmark
Total import: 40.2 billion kWh
Total export: 62.7 billion kWh
Sweden
Poland
Czech Republic
Austria
Switzerland
France
Luxembourg
Netherlands
ImportExport
1.4 billion kWh
0.5 billion kWh
0.1 billion kWh
7.9 billion kWh
5.6 billion kWh
15.0 billion kWh
13.9 billion kWh
0.9 billion kWh
0.8 billion kWh
0.8 billion kWh
18.9 billion kWh
5.3 billion kWh
10.6 billion kWh
2.7 billion kWh
1.3 billion kWh
5.6 billion kWh
2.5 billion kWh
9.2 billion kWh
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Integration of Wind Energy into the Grid
Wind Power in Figures
2008 2007
Installed capacity of wind power in Germany as of December 31 26,620 MW 20,432 MWThereof in E.ON control zone 8,230 MW 8,112 MW
Average wind power fed into E.ON control zone n.a. 1,483 MW
Wind energy generation in Germany 40.2 billion kWh 30 billion kWhThereof in E.ON control zone 37.7 billion kWh 13 billion kWh
Compensation to be paid for electricity generated from wind energy under the Renewable Energies Act (Germany) n.a. approx. 2,660 million
Thereof to be borne by customers in the E.ON control zone n.a. approx. 1,150 million
Source: Windreport E.ON Netz, BDEW.
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 48,000MW
40,000
30,000
20,000
10,000
Source: ISET, ENE, dena.
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Europe
Distribution System in the German Power Market
Central EuropeMajor Shareholdings
As of December 31, 2008 %
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 Thringer Energienetze GmbH 53.0
E.ON Bayern AG 100.0
E.ON Mitte
E.ON Westfalen Weser
E.ON Hanse
E.ON Bayern
TEN Thringer Energienetz GmbH
E.ON Avacon
E.ON edis
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Europe
Distribution System in the German Gas Market
Central EuropeMajor Shareholdings
As of December 31, 2008 %
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 Thringer Energienetze GmbH 53.0
E.ON Bayern AG 100.0
E.ON Mitte
E WIE EINFACH
E.ON Westfalen Weser
E.ON Hanse
E.ON Bayern
TEN Thringer Energienetz GmbH
E.ON Avacon
E.ON edis
Majority shareholdings
Gas supply of E.ON Hanse in the supply area of E.ON edis
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Europe
Activities in the German Sales MarketPower
Central EuropeMajor Shareholdings
As of December 31, 2008 %
E WIE EINFACH Strom & Gas GmbH 100.0
E.ON Vertrieb Deutschland GmbH 84.6
Key Figures Power
As of December 31, 2008Central Europeshareholdings Overall market2
Power supplied 303.9 billion kWh1 555 billion kWh
Customers 8 million 45 million
Transmission system length (220/380 kV) 10,600 km 111,200 km3
Generation capacity 24,851 MW 138,424 MW
Generation output 122.3 billion kWh 490 billion kWh
1Including sale of power of E.ON Energy Sales (EES) in other European Countries.2Source: BDEW.3Including 110 kV.
E WIE EINFACH
E.ON Vertrieb DeutschlandMunich
Cologne
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Europe
Activities in the German Sales MarketGas
Key Figures Gas
As of December 31, 2008Central Europeshareholdings1 Overall market
Gas supplied 100.6 billion kWh 922.2 billion kWh
Customers 1.5 million 19.1 million2
1Consolidated shareholdings >50.0 percent.2Source: eurogas.
Central EuropeMajor Shareholdings Gas
As of December 31, 2008 %
E WIE EINFACH Strom & Gas GmbH 100.0
E.ON Vertrieb Deutschland GmbH 84.6
E WIE EINFACH
E.ON Vertrieb DeutschlandMunich
Cologne
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Europe
Activities in the Netherlands
Central EuropeShareholdings
As of December 31, 2008 %
E.ON Benelux 100.0
Key Figures Power and Gas
As of December 31, 2008Central Europeshareholdings Overall market1
Power supplied1, 2 1.2 billion kWh 95 billion kWh
Customers 0.11 million 8.0 million
Generation capacity 1,900 MWel 20,904 MWelGeneration output 10.5 billion kWh 96 billion kWh
Gas supplied 3.3 billion kWh
Gas customers 0.15 million
1Source: BDEW.2Only retail business.
Leiden 81 MWThe Hague 100 MWUCML 78 MWMaasvlakte 1,066 MW
Galilestraat 209 MWDelft 93 MWRoCa 269 MW
Gas-fired power station
Hard-coal-fired power station
Nether lands
Belgium
Luxembourg
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Key Figures
As of December 31, 2008 France Overall market1
Power supplied2 18 billion kWh 441 billion kWh
Attributable generation capacity 1,550 MW 115.9 GW
Generation output2 10 billion kWh 544,7 billion kWh
Gas supplied 10,4 billion kWh 523 billion kWh
Customers 195 34 million
1Source: CRE.2Pro forma full-year figures.
Activities in France
Europe
Hard-coal-fired power station
Paris
253 MW Hornaing
1,086 MW Emile Huchet
270 MW Lucy
868 MW Gardanne
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Europe
Activities in Switzerland
Minority shareholding 20 percent
Key Figures
As of December 31, 2008Central Europeshareholdings1 Overall market3
Power supplied2 7.8 billion kWh 56.2 billion kWh
Customers 0.3 million 4.0 million
Transmission system length 711 km 12,816 km
Generation capacity 2,205 MW 17,306 MW
1Source: BKW. Figures not consolidated into E.ON Group.2In Switzerland.3As of December 31, 2006.
E.ON EnergieShareholdings
As of December 31, 2008 %
BKW 21.01
1Equity interest 21.0 percent, voting interest 20.0 percent.
BKW21%
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Europe
Central Europe EastActivities in the Power Market
Majority shareholdings
Minority shareholdings 20 percent; management by E.ON
Slovakia
Hungary
Czech Republic
Romania
Bulgaria
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47
Key Figures Power1
As of December 31, 2008Central Europeshareholdings2 Overall market3
Bulgaria
Power supplied 5.3 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
Power supplied 3.2 billion kWh 53 billion kWh
Customers 1.4 million 8.7 million
Transmission system length (110 kV) 3,737 km 18,600 km
Generation capacity 0 MW 17,198 MW
Slovakia
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
Power supplied 11.7 billion kWh 64 billion kWh
Customers 1.4 million 5.6 million
Transmission system length (110 kV) 2,447 km 18,004 km
Generation capacity 114 MW 17,508 MW
Hungary
Power supplied 12.5 billion kWh 41 billion kWh
Customers 2.5 million 5.2 million
Transmission system length (110 kV) 4,442 km 10,500 km
Generation capacity 232 MW 8,171 MW
1Key figures of all shareholdings > 20 percent as of December 31, 2008.2Only power plants > 20MW included.3Overall market figures pro forma, as not all data is available for 2008.
Central EuropeShareholdings Power
As of December 31, 2008 %
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 Romnia 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
Czech Republic
E.ON Czech Holding AG 100.0
Teplrna 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 esk republika, s.r.o. 100.0
E.ON Trend s.r.o. 100.0
Hungary
E.ON Hungria Energetikai ZRt. 100.0
Debreceni Kombinlt Ciklus Erm Kft. 100.0
Nyregyhzi Kombinlt Ciklus Erm Kft. 100.0
E.ON Energiatermel Kft. 100.0
E.ON Dl-dunntli ramhlzati ZRt. 100.0
E.ON szak-dunntli ramhlzati ZRt. 100.0
E.ON Tiszntli ramhlzati ZRt. 100.0
E.ON Energiaszolgltat Kft. 100.0
E.ON Hlzati Szolgltat Kft. 100.0
E.ON gyflszolglati Kft. 100.0
E.ON Gazdasgi Szolgltat Kft. 100.0
1Additional 69.8% held by E.ON Ruhrgas International.
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Europe
Central Europe EastActivities in the Gas Market
Key Figures Gas
As of December 31, 2008Central Europeshareholdings Overall market1
Czech Republic
Gas supplied 3.7 billion kWh 93.8 billion kWh1
Customers 0.1 million 2.8 million
Hungary
Natural gas supplied 12.2 billion kWh 137.8 billion kWh
Customers 0.6 million 3.5 million
1Source: eurogas.
Central EuropeShareholdings Gas
As of December 31, 2008 %
Czech Republic
E.ON Distribuce, a.s. (power and gas) 100.0
E.ON Energie, a.s. (power and gas) 100.0
E.ON esk republika, s.r.o. 100.0
Jihoesk plynrensk, a.s. (JP) 100.0
Hungary
E.ON Dl-dunntli Gzhlzati ZRt. (DDGZ) 99.9
E.ON Kzp-dunntli Gzhlzati ZRt. (KGZ) 99.6
Romania
E.ON Gas Distributie S.A.1 51.0
E.ON Gas Romnia1 51.0
1Since December 31, 2008.
Majority shareholdings
Minority shareholdings 20 percent
PPSlovakia
Hungary
Czech Republic
Romania
Bulgaria
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49
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
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Composition of Power Prices in Germany
ct/kWh Average price for households: 22.70
13.88 Procurement, grid access fee, energy data management, and sales
3.62 VAT
2.05 Power Tax
1.79 Concession fee2
1.36 CHP & Renewables Act
1Power supplied to households; annual sales volume 3,500 kWh as of spring 2009.2Concession 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
1999
8.86
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 20092
13.25 12.07ct/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 2009.Sources: VEA, BDEW.
0.15
0.11
0.09
8.51
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
1.13
9.55
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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 2,5005,000 kWh.Source: Eurostat.
51
Composition of Power Prices
Source: BDEW, 2009.
Monthly power bill fora 3-person household (3,500 kWh/a)
20081998
63.1549.95
37.60
12.35
37.86
25.29
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
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Key Figures
Central Europe Key Figures
in millions 2008 2007 +/ %
Total sales 41,135 32,029 +28.4
Adjusted EBITDA 6,266 6,222 +0.7
Depreciation/amortization and write-downs 1,545 1,552
Adjusted EBIT 4,720 4,670 +1.1
Cash provided by operating activities 4,016 3,811 +5.4
Returns
Capital employed1 19,310 18,943 +1.9
ROCE 24.4% 24.7% 0.33
Cost of capital 9.2% 9.3% 0.13
Power procurement2
Owned generation 138.3bn kWh 134.6 bn kWh +2.8
Purchases 251.4 bn kWh 192.6 bn kWh +30.1from jointly owned power plants 4.5 bn kWh 8.3 bn kWh 45.8Energy Trading/outside sources 246.9 bn kWh 184.3 bn kWh +34.0
Power procured 389.7 bn kWh 327.2 bn kWh +19.1
Station use, line loss, pumped storage hydro 13.5 bn kWh 13.5 bn kWh
Power sales 376.2 bn kWh 313.7 bn kWh +19.9
Power sales by customer segment
Residential and small commercial 46.8 bn kWh 44.1 bn kWh +6.1
Industrial and large commercial 82.0 bn kWh 83.7 bn kWh 2.0
Sales partners 101.7 bn kWh 105.8 bn kWh 45.3
Wholesale market/Energy Trading 145.7 bn kWh 80.1 bn kWh +81.9
Installed attributable generating capacity 28,749 MW 28,479 MW +1.0
1Annual average.2Excludes trading operations, which are recognized net under IFRS.3Change in percentage points.
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Pan-European GasMarket Unit
54 Introduction
55 Market Overview Germany
56 Business Activities
57 E.ON RuhrgasBusiness Activities along the Gas Value Chain
57 E.ON Ruhrgas2008 Sales
58 European Gas Imports Development
59 E.ON RuhrgasGas Supply Structure by Country in 2008
60 E.ON RuhrgasSales Volumes by Sectors 2008
61 E.ON Ruhrgas20032008 Sales Abroad
61 European Gas Infrastructure
62 Liquefied Natural Gas (LNG)
63 Activities of E.ON Ruhrgas in LNG
64 LNG Flows to Europe 2008 vs. 2010
65 E.ON RuhrgasInternational Shareholdings
67 E.ON RuhrgasUpstream Activities
68 E.ON RuhrgasActivities in Russia
69 Gas Production in RussiaYuzhno Russkoye
70 E.ON RuhrgasPipeline and Storage Joint Ventures
71 E.ON RuhrgasPipelines in Germany
71 E.ON RuhrgasTransmission
72 E.ON RuhrgasTransport
73 E.ON Gas Storage
75 E.ON RuhrgasInvolvement in the German Gas Market
76 German Natural Gas Consumption by Market Sector
76 Residential Heating Systems in Germany
77 E.ON RuhrgasActivities in Slovakia
78 E.ON RuhrgasActivities in Hungary
79 E.ON RuhrgasActivities in Romania
80 Key Figures
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Introduction
E.ON Ruhrgas is the lead company of the Pan-European Gas
market unit and is responsible for all of E.ONs 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 Ruhrgass
principal business is the exploration and production, supply,
transmission, storage and sales of natural gas. E.ON Ruhrgas
also holds numerous stakes in Germany and other European
gas companies, as well as a minority shareholding in Gazprom,
Russias main natural gas exploration, production, transporta-
tion and marketing company. In 2008, the Pan-European Gas
market unit recorded revenues of 27.4 billion and adjusted
EBIT of 2.6 billion.
In 2008, E.ON Ruhrgas entered into the following significant
transactions:
In October 2008 E.ON reached an agreement with Russias Gazprom to acquire a 25-percent stake in Yuzhno Russkoye,
a natural gas field in Siberia. Yuzhno Russkoyes reserves
total more than 600 billion m3, making it one of the worlds
largest gas fields. Production at Yuzhno Russkoye started
in 2008 and is expected to reach 25 bcm of natural gas
per year in 2009.
E.ON Ruhrgas transferred ownership of its gas transport pipeline system in Germany to E.ON Gastransport.
The storage business has been repositioned in a separate subsidiary, Essen-based E.ON Gas Storage GmbH, to
manage the E.ON Groups storage operations throughout
Europe.
E.ON Ruhrgas acquired a 5-percent stake and 3 billion m3 of annual regasification capacity at GATE, an LNG terminal
to be built in Rotterdam.
E.ON Ruhrgas was selected as an investor for a new LNG project in West Africa. Accordingly, E.ON Ruhrgas has
a stake in all phases of this promising project, from pro-
duction to liquefaction, and signed an agreement for the
development of the gas infrastructure.
Gas Terra and E.ON Ruhrgas extended their existing gas supply contract up to 2028 and thus increased the con-
tractual volume of Dutch gas by approx. 60 billion m3.
E.ON Ruhrgas and the Swiss buyers consortium Swissgas signed a contract for the delivery of 10 billion kWh of
natural gas annually for the period 20102015 covering
nearly one third of Switzerlands annual gas needs.
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Market Overview Germany
5 supra-regional long-distance companies Level 1
Gas consumption
995 billion kWh
10 regional long-distance gas companies
Transmission companies
Imports
967 billion kWh
Domestic production
152 billion kWh
Over 700 regional and local municipalities
Distribution companies
Source: WEG Wirtschaftsverband Erdl- und Erdgasgewinnung e. V., Statistisches Bundesamt, BMWi.
Pan-European GasGas Markets with E.ON Core Presence
Billion kWhGas supplied
as of Dec. 31, 2008
Slovakia 70.9
Hungary 149.3
Romania 186.6
Italy 897.0
Germany 995.0
Source: E.ON.
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Business Activities1
E.ON AG
E.ON Ruhrgas AG 100%
Gas exploration and production
Gas procurement
Gas sales
Gas storage
Network operation
Technical development, advice, service
Up-/Midstream Activities Downstream Activities
Exploration & Production E.ON Ruhrgas UK
Exploration &
Production Ltd. 100%
E.ON Ruhrgas Norge AS 100%
Thga AG 100%Approx. 110 energy shareholdings in
Germany
TransmissionE.ON Gastransport
GmbH 100%
Marketing of transmission capacities/
operation of pipeline network
E.ON Ruhrgas International AG 100%Approx. 25 energy shareholdings
Development and expansion of
business activities in Europe
StorageE.ON Gas Storage GmbH 100%
Project companies and other companies Worldwide design and construction of
pipeline systems for the transporta-
tion, storage and distribution of gas,
oil, products, water and slurries
Construction and operation of under-
ground gas facilities
Construction and operation of high-
pressure gas pipelines
Laying and rental of fibre-optic cables
for telecommunications companies
OAO Gazprom 6.4%2
1 As of December 31, 2008.2 To be reduced to 3.5% after finalization of asset swap with Gazprom.
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E.ON RuhrgasBusiness Activities along the Gas Value Chain
E.ON Ruhrgas2008 Sales
Major market positions
E.ON Ruhrgas is the market leader in Germany with total gas sales of 687 billion kWh (2008).
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.
Newly established 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)
6.15
22.3
in billions
Sales by Business
Other/consolidation
Downstream/shareholdings
Up-/Midstream
0 2 4 6 8 10 12 14 16 18 20 22
1.03
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European Gas Imports Development
Key challenges of European gas markets
The financial crisis currently leads to reduced gas demand and to temporary overcapacities 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: Nigeria 3%, Egypt 1%, Qatar 1%, Trinidad and Tobago 1% (2008). Basis for imports: contracted volumes and prospective contract prolongations. For Norway extensive utilization of import capacities is assumed.Provisional data for 2008.
200810%
201516%
202017% LNG share in supplies
538 620645 650700
18% Domestic production22%35%
13% Norway14%
18%
28% Russia30%27%
8% Algeria9%10%
11% Other non-EU imports112%10%
6% Advanced projects6%
16% Future projects7%
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E.ON RuhrgasGas Supply Structure by Country in 2008
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: 680 billion kWh
121.4 Germany
114.8 Netherlands
41.7 U.K.
25.4 Denmark
22.0 Others1
Norway 176.9
Russia 177.3
E.ON RuhrgasGas Supplies by Country
1Italy, France, Austria, Hungary, Spain and Slovakia.
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E.ON RuhrgasSales Volumes by Sectors 2008
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
1,411
Points of supply
1,889
Breakdown of natural gas sales
38% 24% 13% 25%
Number of customers/countries
32 customers approx. 100 customers approx. 150 customers 15 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.
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61
Lisbon
SinesHuelva
Crdoba
MadridValencia
BilbaoBarcelona
Lyon
Paris
Bern
BrusselsEssen Prague
Vienna
RovigoLjubljana
Zagreb
Belgrade
Sofi a
IstanbulBrindisi
Rome
Athens
TunisSkikdaAlgiersArzew
BucharestLa Spezia
Krk
BratislavaBudapest
Isle of GrainLondon
Emden
Ecofi sk
Tyra
Dublin
Belfast
Sleipner
Heimdal
FriggTroll
KollsnesOseberg
Karsto
Oslo
Stockholm
Helsinki
St. Petersburg
Minsk
WarsawBerlinWilhelmshaven
Copenhagen
Stavanger
Statfjord Gullfaks
Milford Haven
Zeebrugge
Montoir
Fos-sur-Mer
Cartagena
El Ferrol
E.ON Ruhrgas20032008 Sales Abroad
European Gas Infrastructure
LNG regasification terminals existing planned/under construction
Pipelines existing planned/under construction
Gas field
Billion kWh
65
2003
88
2004
135
2005
160
2006 2007
180
2008
175
150
100
50
E.ON Ruhrgas20032008 Sales Abroad
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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.ONs target markets.
Potentially 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
LNGNatural Gas Supplies to EU30 and Share in 2008
Percentages
Source: E.ON Ruhrgas.
24 LNG
76 Pipeline gas
LNGNatural Gas Supplies to EU30 and Share in 2020
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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
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.
Ongoing negotiating on Sales Purchase Agreements (SPAs) with potential suppliers of LNG.
Liquefaction
Furthermore, E.ON Ruhrgas has been selected as an investor for a new integrated gas liquefaction (LNG)
project in Equatorial Guinea. E.ON Ruhrgas will hold a
share of 5 percent and participate in several stages of
this LNG project: gas infrastructure, gas collection and
liquefaction.
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 developing strategic market entries
in Europe by participating in several regasification projects
or by contracting regasification capacity:
Isle of Grain Terminal (U.K.): contracted annual capacity of 1.7 billion m3/year for the duration of 19 years starting
in 2010.
Wilhelmshaven (Germany): Majority interest in DFTG (Deutsche Flssigerdgas Terminal Gesellschaft).
Isle of Krk (Croatia): Shareholder in a consortium (Adria LNG d.o.o.) with Geoplin, OMV, Total, RWE and other
Croatian partners to build a regasification terminal with
a capacity of 10 to 15 billion m3/year and a planned start
of operations in 2012.
Trading
Beside the long-term LNG supply contracts a global LNG
spotmarket has emerged where idle capacities and arbitrage
opportunities are being utilized. Trading volumes however
remain rather limited. For E.ON, acquiring LNG spot cargoes
allows for a quicker entry into the market and to gain opera-
tional experience.
1HSEhealth, safety, environment.2fobfree on board.
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LNG Flows to Europe 2008 vs. 20101
LNG supplies 2008: 55.3 billion m3
Imports 2010: 80 billion m31 In billion m3/year.2 Including 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
BrindisiMarmara Ereglisi
Revithoussa
Marsa el Brega
Aliaga
from Egypt, Oman, Quatar, Yemen
from Egypt, Oman, Quatarfrom 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
6
12
1
5
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E.ON RuhrgasInternational Shareholdings
As of December 31, 2008.
Supply countrySupplies/supply agreementCooperation agreementAffi liateOffi ce/station
Lithuania
Latvia
Estonia
Finland
Russia
Belarus
Ukraine
Romania
Bulgaria
Croatia
Slovenia
Austria
Germany
Luxembourg
Belgium
Netherlands
SwitzerlandFrance
Italy
Liechtenstein Hungary
Slovakia
CzechRepublic
UnitedKingdom
Poland
Denmark
Sweden
Norway
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E.ON Ruhrgas International: Shareholdings
E.ON Ruhrgas International: Shareholdings outside Germany
Shareholdings
Share held Gas sales 2008 billion kWhCountries %
Gasnor AS Norway 14.00 2.2
Swedegas AB Sweden 29.59
Gasum Oy Finland 20.00 45.0
AS Eesti Gaas Estonia 33.66 7.7
JSC Latvijas Ga- ze Latvia 47.23 16.8
AB Lietuvos Dujos Lithuania 38.91 12.6
Rytu Skirstomieje Tinklai AB Lithuania 20.28
Inwestycyjna Splka Energetyczna Sp. z o.o. (IRB) Poland 50.00
EUROPGAS a.s.1 Czech Republic 50.00
Nafta a.s. Slovakia 40.45 1.3
SPP as2 Slovakia 24.50 62.2
E.ON Fldgz Trade ZRt. Hungary 100.00 118.9
E.ON Fldgz Storage ZRt.3 Hungary 100.00
Panrusgz ZRt. Hungary 50.00 91.4
Colonia-Cluj-Napoca-Energie S.R.L. (CCNE) Romania 33.33
S.C. Congaz S.A. Romania 28.59 3.3
E.ON Romania S.R.L.4 Romania 69.81 30.9
Ekopur d.o.o.5 Slovenia 100.00
Holdigaz SA Switzerland 2.21
Enovos S.A.6 Luxembourg 10.8 16.6
1EUROPGAS a.s. holds 50.0 percent of SPP Bohemia a.s. and 48.18 percent of Moravsk naftov doly a.s. (MND) in the Czech Republic.2E.ON Ruhrgas Mittel- und Osteuropa GmbH has an indirect interest of 24.50 percent in SPP, Slovakia.3Held by E.ON Gas Storage GmbH.4Steered and consolidated by E.ON Energie AG (20.36%); further shareholder: European Bank for Reconstruction and Development (EBRD), London (9.83%).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.
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E.ON RuhrgasUpstream Activities1
Norwegian Sea
Central North Sea
Southern North Sea
Minke
Hunter
Ravenspurn North
Johnston
Caister
Norway
U.K.
1Only fields in production by the end of 2008; therefore without Skarv and Rita.
Europe
Norwegian Sea
Interest
Njord 30%
E.ON Ruhrgas Exploration & Production
2008 2007 2006
Gas
U.K. 768 million m3 751 million m3 725 million m3
Norway 592 million m3 20 million m3
Total gas 1,360 million m3 771 million m3 725 million m3
Oil and liquids
U.K. 2.5 million bbl 2.9 million bbl 2.7 million bbl
Norway 3.4 million bbl 2.1 million bbl 2.6 million bbl
Total oil and liquids 5.9 million bbl 5.0 million bbl 5.3 million bbl
Total production 14.4 million boe 9.8 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
Ravenspurn North 28.8%
Johnston 50.1%
Hunter 79.0%
Caister 40.0%
Minke 42.7%
Merganser
Scoter
Elgin
Glenelg
West Franklin
Franklin
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E.ON RuhrgasActivities in Russia
Gazprom Group
Gas reserves 33.1 trillion m3
Gas production1 549.7 billion m3
Pipeline system1 159,500 km Exports Europe1 184.4 billion m3
CIS and Baltic states 96.5 billion m3
1As of December 31, 2008. Source: Gazprom Management Report.2To be reduced to 3.5% after finalization of asset swap with Gazprom.
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 6.4 percent2.
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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 m or
at least 35 years of production.
Plateau production of approximately 25 billion m/year (equivalent to yearly demand of Spain 100 percent or U.K.
25 percent).
Total investment for field development 2 billion. E.ON agreed participation of nearly 25 percent.
Gas Production in RussiaYuzhno Russkoye
Russia
Surgut
NoyabrskSergino
Sveltyor
Berezovo
Salekhard
Labytnangi
Vorkuta Novyy Port
Jamburg
Dudinka
Norilsk
UrengoyYuzhno Russkoye Pa
n-E
urop
ean
Gas
Mar
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E.ON RuhrgasPipeline and Storage Joint Ventures
Joint venture pipelines: existing planned/in construction
existing (transmission rights only)
Joint venture underground storage
Europe
Shareholdings1
Percentages
(NETG) Nordrheinische Erdgastransportleitungsgesellschaft mbH & Co. KG, Haan (Rhld.) 50.00
(METG) Mittelrheinische Erdgastransportleitungsgesellschaft mbH, Haan (Rhld.) 100.00
(TENP) Trans Europa Naturgas Pipeline GmbH & Co. KG, Essen 51.00
MEGAL Mittel-Europische Gasleitungsgesellschaft mbH & Co. KG, Essen 51.00
DEUDAN Deutsch/Dnische Erdgastransport-Gesellschaft mbH & Co. KG, Handewitt 25.00
GHG Gasspeicher Hannover Gesellschaft mbH, Hanover 13.20
NETRA GmbH Norddeutsche Erdgas Transversale & Co. KG, Emstek 40.60
(EGL) Etzel Gas-Lager GmbH & Co. KG, Friedeburg-Etzel 74.80
Transitgas AG, Zurich, Switzerland 3.00
Baumgarten-Oberkappel Gasleitungsgesellschaft m.b.H., Vienna, Austria2 15.00
(IUK) Interconnector (UK) Limited, London, United Kingdom 25.09
BBL Company V.O.F., Groningen, Netherlands 20.00
Nord Stream AG, Zug, Switzerland 20.00
Tauerngasleitung Studien- und Planungsgesellschaft mbH (TGL), Wals, Austria 45.00
E.ON Ruhrgas Nord Stream Anbindungsgesellschaft, Essen3 100.00
1As of December 31, 2008.2Holds the assets of the WAG West Austrian Gasline via a financial lease agreement with OMV Gas.3Has a 25% share in NEL and a 20% share in OPAL.
Zeebrugge
Brussels
Saarbrcken
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 EGL
IUK
BBLBacton
London
METG
-
71
E.ON RuhrgasTransmission
Transmission services
Gas transmission through the gas network operated by E.ON Gastransport, a wholly-owned subsidiary of E.ON
Ruhrgas AG.
Storage services
Provision of storage capacity of E.ON Ruhrgas AG.
Virtual trading points
Handling the gas traded at the virtual trading points of E.ON Gastransport.
Transmission management in third-party networks
Purchasing of transmission capacity in national and international third-party networks.
Handling of transmission in third-party networks.
E.ON RuhrgasPipelines in Germany
E.ON Ruhrgas Pipelines in Germany1
km TotalMaintained by
E.ON Ruhrgas AG
Owned by E.ON Ruhrgas 6,746 6,428
Co-owned pipelines 1,547 602
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 subsidiaries ERI and Thga 2,037
Owned by third parties 1,043
Total in Germany 11,611 12,942
1As of December 3