e.on strategy & key figures 2010
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TRANSCRIPT
Stra
teg
y &
Key
Fig
ures
201
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Strategy & Key Figures 2010
E.ON Russia PowerMoscow
E.ON ItaliaMilan
E.ON U.S.Louisville
E.ON UKCoventry
E.ON SverigeMalmö
E.ON EnergieMunich
E.ON Climate & RenewablesDüsseldorf
E.ON Energy TradingDüsseldorf
E.ON RuhrgasEssen
E.ON AGDüsseldorf
E.ON EspañaMadrid
Stra
teg
y &
Key
Fig
ures
201
0
Strategy & Key Figures 2010
E.ON Russia PowerMoscow
E.ON ItaliaMilan
E.ON U.S.Louisville
E.ON UKCoventry
E.ON SverigeMalmö
E.ON EnergieMunich
E.ON Climate & RenewablesDüsseldorf
E.ON Energy TradingDüsseldorf
E.ON RuhrgasEssen
E.ON AGDüsseldorf
E.ON EspañaMadrid
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
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.
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
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 chainWe’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 convergencePower 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. GrowthGrowth 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 experienceOur 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 competitionOpen, 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 per cent are for organic growth, in particular gener-
ation, renewables as well as gas upstream and supply.
Strategy & Investment Plan
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. MidwestCash 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.
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 8,823Equity 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 6,348Securities 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
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
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 -2,351Income 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
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
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.
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
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 45,0001Figures 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
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
1 In 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 1,009.1E.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).
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 544747 49
51
CAGR 14.4%
E.ON Group Key Figures
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 Structure 1, 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.
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 -5,095Intangible 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 -148Inventories 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).
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.
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).
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
1 Outstanding 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
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 bond6The 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.
E.ON Group
21
Central EuropeMarket 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
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-
er ation 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.
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 kWhPower 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 kWhGas 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.
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
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
26 Central Europe Market Unit
Power and Gas Activities in Europe
Key Figures Overall Market Power1
As of December 31, 2009Central Europeshareholdings 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, 2009Central 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-
landsGermany
Belgium
Czech
Republic
Slovakia
Hungary
Romania
Bulgaria
France Switzerland
27
Business Activities along the Value Chain
2009 Power Procurement and Sales Volume1
Upstream Midstream Downstream
Generation Transmission1 Distribution Retail
non-regulated regulated1Sold effective December 31, 2009.
PowerGas
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
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
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.
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
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
32 Central Europe Market Unit
Others (Waste, Wind, Biomass et al.)1
As of December 31, 2009Total 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 Germany 2 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 consolidated2Information 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
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.
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
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
Nether lands
Denmark
Sweden
Lehrte
Bamberg
Bayreuth Czech Republic
Austria
Austria
Dachau
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 48,000MW
40,000
30,000
20,000
10,000
Source: ISET, ENE, dena.
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
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
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, 2009Central Europeshareholdings 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 DeutschlandMunich
Cologne
40 Central Europe Market Unit
Europe
Activities in the German Sales Market—Gas
Key Figures Gas
As of December 31, 2009Central Europeshareholdings1 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 DeutschlandMunich
Cologne
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, 2009Central Europeshareholdings 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
Nether lands
Belgium
Luxembourg
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 203 2 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
43
Europe
Activities in Switzerland
Minority shareholding ≥20 percent
Key Figures
As of December 31, 2009Central Europeshareholdings1 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%
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
45
Key Figures Power1
As of December 31, 2009Central Europeshareholdings2 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.
46 Central Europe Market Unit
Europe
Central Europe East—Activities in the Gas Market
Key Figures Gas
As of December 31, 2009Central Europeshareholdings 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
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
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 & Renewables Act
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 11.44ct/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
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 fora 3-person household (3,500 kWh/year)
20091999
67.7048.20
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
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 +3.7from jointly owned power plants 5.4 bn kWh 4.5 bn kWh +20.0Energy 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.
51
Pan-European GasMarket 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
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 Gas werke,
HEAG Südhessische Energie, Stadtwerke Duisburg, and
Stadtwerke Karlsruhe have been excluded from the sale.
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 kWhGas 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.
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.
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
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.
200913%
202024%
203025% LNG share in supplies
456 520 570
15% Domestic production24%
38%
17% Norway
18%20%
30% Russia30%23%
12% Algeria13%
10%
9% Other non-EU imports110%
9%
2% Advanced projects 2%
15% Future projects 3%
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.
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.
59
Lisbon
Sines
Huelva
Córdoba
MadridValencia
BilbaoBarcelona
Lyon
Paris
Bern
Brussels
Essen Prague
Vienna
Rovigo
Ljubljana
Zagreb
Belgrade
Sofia
Istanbul
BrindisiRome
Athens
TunisSkikdaAlgiersArzew
BucharestLa Spezia
Krk
Bratislava
Budapest
Isle of GrainLondon
Emden
Ecofisk
Tyra
Dublin
Belfast
Sleipner
Heimdal
FriggTroll
Kollsnes
OsebergKarsto
Oslo
Stockholm
Helsinki
St. Petersburg
Minsk
WarsawBerlinWilhelmshaven
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
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
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.
62 Pan-European Gas Market Unit
LNG Flows to Europe 2008 vs. 2010 1
LNG supplies 2008: 55.3 billion m3
Imports 2010: 94 billion m3
1 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, Qatar, Yemen
from Egypt, Oman, Qatarfrom 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
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
SwitzerlandFrance
Italy
Liechtenstein Hungary
Slovakia
Czech
Republic
United
Kingdom
Poland
Denmark
Sweden
Norway
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.
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
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.
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
NoyabrskSergino
Sveltyor
Berezovo
Salekhard
Labytnangi
Vorkuta Novyy Port
Jamburg
Dudinka
Norilsk
UrengoyYuzhno Russkoye
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
WaidhausPrague
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
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 TotalMaintained 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.
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.
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 pipelineCompressor stationUnderground storage facilityOther stationGas import pointCompressor 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
BremerhavenEtzel
Empelde
Stockstadt
Hähnlein
Sandhausen
Inzenham-WestBreitbrunn
Bierwang
Epe
Krummhörn
Berlin
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.
73
E.ON Ruhrgas—Involvement in the German Gas Market
Natural gas pipelineCompressor stationUnderground storage facilityOther stationGas import pointCompressor 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 AGOverall 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
FreiburgMunich
Giessen
Winterberg
Bremerhaven
EssenBocholt
Saarbrücken
Trier
Koblenz
Frankfurt
Stuttgart
Nuremberg
Regensburg
Emsbüren
Meppen
Cologne
Berlin
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
1 2009. 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
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 HotNové Mestro
Plavecký
Peter
Nitra
Nitra Zvolen
Bystrica
Lučenec
BanskáPrievidza
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
BratislavaBratislava
Baum-garten
Láb
Komárno
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 TradeE.ON
Föld gáz 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/dMobile: 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/dMobile: 1,440 million m3
Cushion gas: 2,410 million m3
Injection cap.: 10.3 million m3/d
Pusztaederics
Peak cap.: 3.1 million m3/dMobile: 340 million m3
Cushion gas: 266 million m3
Injection cap.: 2.5 million m3/d
Zsana
Peak cap.: 28.0 million m3/dMobile: 2,170 million m3
Cushion gas: 1,435 million m3
Injection cap.: 17.2 million m3/d
Kardoskút
Peak cap.: 3.2 million m3/dMobile: 280 million m3
Cushion gas: 260 million m3
Injection cap.: 2.2 million m3/d
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
BrașovFagaras
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
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.
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
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.
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.
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
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 20.0of 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
84 U.K. Market Unit
Business Activities along the Value Chain
Upstream Downstream
Generation Distribution Retail
non-regulated regulated
PowerGas
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
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.
86 U.K. Market Unit
Generation Assets
Natural-Gas-fired Power Stations
As of December 31, 2009Total capacity
net MW
E.ON UK’s share
Start-up date%Attributable
capacity MW
Cottam Development Centre (CDC) Module 400 100.0 400 1999
Connahs Quay U1 345 100.0 345 1996
Connahs Quay U2 345 100.0 345 1996
Connahs Quay U3 345 100.0 345 1996
Connahs Quay U4 345 100.0 345 1996
Corby Module 401 50.0 200 1993
Enfield 408 100.0 408 2002
Killingholme Mod 1 450 100.0 450 1992
Killingholme Mod 2 450 100.0 450 1993
Merchant CHP 218 100.0 218
Total 3,707 3,506
Hard-Coal-fired Power Stations
As of December 31, 2009Total capacity
net MW
E.ON UK’s share
Start-up date%Attributable
capacity MW
Ironbridge U1 485 100.0 485 1970
Ironbridge U2 485 100.0 485 1970
Kingsnorth U1 485 100.0 485 1970
Kingsnorth U2 485 100.0 485 1971
Kingsnorth U3 485 100.0 485 1972
Kingsnorth U4 485 100.0 485 1973
Ratcliffe U1 500 100.0 500 1968
Ratcliffe U2 500 100.0 500 1969
Ratcliffe U3 500 100.0 500 1970
Ratcliffe U4 500 100.0 500 1970
Total 4,910 4,910
87
Other Power Stations
As of December 31, 2009Total capacity
net MW
E.ON UK’s share
Start-up date%Attributable
capacity MW
CHP schemes 359 100.0 359
Total 359 359
Oil-fired Power Stations
As of December 31, 2009Total capacity
net MW
E.ON UK’s share
Start-up date%Attributable
capacity MW
Grain U1 650 100.0 650 1982
Grain U4 650 100.0 650 1984
Total 1,300 1,300
Other Power Stations
As of December 31, 2009Total capacity
net MW
E.ON UK’s share
Start-up date%Attributable
capacity MW
Grain Aux GT1 28 100.0 28 1979
Grain Aux GT4 27 100.0 27 1980
Kingsnorth Aux GT1 17 100.0 17 1967
Kingsnorth Aux GT4 17 100.0 17 1968
Ratcliffe Aux GT2 17 100.0 17 1967
Ratcliffe Aux GT4 17 100.0 17 1968
Taylors Lane GT2 68 100.0 68 1981
Taylors Lane GT3 64 100.0 64 1979
Total 255 255
E.ON UK—investments in generation
• E.ON UK remains committed to building a technologi-
cally advanced cleaner-coal power station at Kingsnorth
in southeast England. Due to its location (which allows
connection to depleted gas fields in the North Sea) and
its position as a short-listed candidate in a U.K. govern-
ment CCS competition for funding, Kingsnorth remains
one of the most attractive options in the E.ON Group for
the large-scale demonstration of CCS.
• In 2007 E.ON UK started construction of one of the U.K.’s
largest gas-fired CHP stations which will generate 1,275 MW
of power and export up to 340 MW of heat at its Isle of
Grain site in Kent. This station is due to commission in 2010.
• In January 2009, E.ON UK and RWE npower formed Hori-
zon Nuclear Power, a 50-50 joint venture whose purpose
is to develop up to 6 GW of new nuclear capacity in the
U.K.—enough to power a city the size of Greater London—
by 2025.
88 U.K. Market Unit
Regional Distribution
Europe
Scottish &
Southern Energy
Scottish Power
Energy Networks
CE Electric UK
Central Networks
EDF Energy
EDF Energy
EDF EnergyWestern Power
Distribution
Scottish & Southern
Energy
Western Power
Distribution
Scottish Power
Energy Networks
Electricity
North West
89
In January 2004, E.ON UK acquired Midlands Electricity for
£1.2 billion. The distribution network of Midlands Electricity
is adjoining E.ON UK’s existing East Midlands Electricity
network. The combined system is known as Central Networks,
with 5.0 million customer connections.
Customer accounts in millions Total: 28.8
Western Power Distribution
Electricity North West Limited
0 1 2 3 4 5 6 7
2.4
2.6
Scottish Power Energy Networks
3.5
Scottish & Southern Energy
3.6
CE Electric UK 3.8
Central Networks 5.0
EDF Energy 7.9
Regional Distribution in U.K.
90 U.K. Market Unit
Supply Structure
Energy production Purchase
Retail Distribution
Industrial &
commercial
Small & medium
enterprises
Residential All customer groups
Non-regulated Business
• Activities throughout U.K.
• Free choice of electricity supplier.
• Competition and minimal regulation.
Regulated Business
• Operating in East Midlands and in Midlands
(since January 16, 2004).
• Only electricity distribution.
• Strict separation from retail business.
non-regulated regulated
Power and Gas Customers1
Marketing, customer services, and products create loyalty to
the E.ON brand.
1As of December 31, 2009.
26 Industrial and commercial
108 Small & medium enterprises
2,779 Residential
Customers in thousands Total: 2,913
E.ON UK—Gas
Customers in thousands Total: 5,055
E.ON UK—Power
40 Industrial and commercial
379 Small & medium enterprises
4,636 Residential
91
1In January 2009, the regulated New Connections activities moved to Central Networks, with the goal of improving the competitiveness of the remaining business. Metering installation, which remains within Energy Services, continues to be an important part of our business as we work with the government to achieve a nationwide rollout of smart meters over the next decade. The Home Energy Services and Sustainable Energy Solutions activities will become self-contained end-to-end businesses (instead of being split between Energy Services and Retail at present).
Energy Services1
• Metering Services—Provides meter installation, data
retrieval, data management and meter maintenance
services to external customers and our retail business.
• Home Energy Services—Provides home energy installa-
tions and repairs, including loft and cavity wall insulations,
boiler service and repair work to domestic customers,
local authorities and housing associations.
Energy Services Key Figures
2009
Home installations
Number of heating jobs 116,414
Number of local authority/housing association contracts 7
Metering
Smart meters fitted 1,834
92 U.K. Market Unit
Key Figures
U.K. Key Figures
2009 2008 +/- %
Sales €10,097 million €11,051 million -9.0
Adjusted EBITDA €1,080 million €1,396 million -23
Adjusted EBIT €649 million €922 million -30
ROCE 7.3% 9.1% -1.81
Cost of capital 9.8% 9.8% +0.01
Value added -€224 million -€71 million -215
Cash provided by operating activities €1,562 million €893 million +75
Investments €897 million €1,162 million -23
Employees (at year-end) 16,098 17,480 -8.0
1Change in percentage points.
E.ON Group
93
NordicMarket Unit
94 Introduction
95 Market Overview Power
96 Market Overview Gas
97 Business Activities
98 2009 Sales
99 Activities in the Nordic Region
100 Business Activities along the Value Chain
100 2009 Power Procurement and Sales Volume
101 Generation Capacity by Sources
102 Location of Major Generation Assets
103 Generation Assets
105 Generation Output by Sources
106 Distribution Regions in Sweden and Finland
107 The Natural Gas Market in Sweden
108 2009 Gas Procurement and Sales Volume
108 Key Figures
94 Nordic Market Unit
Introduction
E.ON Sverige is a leading energy company in the Nordic market
and drives E.ON’s business in the region. Its integrated energy
business in Northern Europe encompasses power and heat
generation; power, gas, and heat distribution; power, gas, and
heat marketing; and a wide range of energy services. As of
the end of 2008, E.ON Sverige is the second-largest Swedish
utility (on the basis of power sales and production capacity).
E.ON Sverige and its associated companies are actively involved
in the ownership and operation of power generation facilities.
As of December 31, 2009, E.ON Sverige owned interests in
power stations with a total installed capacity of approximately
17,903 MW, of which its attributable share was approximately
6,842 MW (not including mothballed and shutdown power
plants).
In 2009, about 45 percent of the electric power generated by
E.ON Sverige was generated at nuclear facilities and about
43 percent at hydroelectric plants. The remaining approximately
12 percent was generated using fuel oil, biomass, natural gas,
wind power and waste. E.ON Sverige also supplies gas, is
active in the heat and waste business and conducts electricity
trading activities. In 2009, E.ON Sverige had sales of €3.3 billion
and adjusted EBIT of €535 million.
Electricity contributed approximately 76 percent, heat 12 per-
cent, gas 5 percent and other 7 percent of 2009 sales, net of
energy taxes. Other sales are mainly attributable to the waste
business, as well as contracting activities. E.ON Sverige sold a
total of approximately 44.5 billion kWh of electricity in 2009
(including both purchases and sales). E.ON Sverige is primarily
active in Sweden, but also operates to a minor degree in Fin-
land, Denmark, Norway and Poland. In 2009, E.ON Sverige esti-
mates that it supplied about 16 percent of the electricity con-
sumed by end users in Sweden.
95
Market Overview Power
Generation
~350 operators
(Vattenfall, Fortum, Statkraft, E.ON and Dong account for
~60% of the market)1
Trading
~400 operators1
Transmission
Sweden: Svenska Kraftnät 100%
Finland: Fingrid 100%
Norway: Statnett 90%, others 10%2
Denmark: Energinet 100%3
Distribution
~500 operators
(Vattenfall, Fortum, Statkraft, E.ON and Hafslund account
for ~30% of the market)3
Retail
~350 operators
(Vattenfall, Fortum, Statkraft, E.ON and Hafslund account
for ~40% of the market)4
1 Nord Pool. 2 Statnett Annual Report 2009. 3 ERGEG. 4Fortum Annual Report 2009 and Annual Report of Dong and Hafslund.
Nordic Power Market
Billion kWh Power supplied1
Sweden 138
Norway 124
Finland 81
Denmark 35
Total 378
1Source: Energimyndigheten for Sweden, Montel Powernews for Norway, Finsk energiindustri for Finland, Danish Energy Agency for Denmark.
96 Nordic Market Unit
Sweden Denmark Finland
Production Production Production
Sweden imports all natural gas1 2 operators
Dansk Undergrunds Consortium
DUC & Dong
Finland imports all natural gas5
Transmission Transmission Transmission
2 operators
E.ON Gas and Swedegas2
1 operator
Energinet3
1 operator
Gasum Oy5
Distribution Distribution Distribution
5 operators
E.ON Gas Sverige, Göteborgs Energi,
Öresundskraft, Lunds Energi & Var-
bergs Energi2
4 operators
Dong distribution, HNG—Naturgas
midt-nord, Ålborgs Kommune, Natur-
gas Fyn Distribution4
31 operators5
Retail Retail Retail
7 operators: E.ON Försäljning, Göte-
borgs Energi, Öresundskraft, Dong,
Lunds Energi, Varberg Energi, HNG—
Naturgas midt-nord2
6 operators
Dong, HNG—Naturgas midt-nord,
Statoil Gazelle, OK, Dansk Shell,
Ålborgs Kommune Gasforsyningen4
Few operators, the largest is Gasum
Oy5
1energimarknadsinspektionen.se2gasforeningen.se3energinet.dk4gasprisguiden.dk5ERGEG National reporting 2009.
Market Overview Gas
Nordic—Natural Gas Market Sweden, Denmark and Finland
Billion kWh Gas supplied1
Sweden 14.02
Finland 37.43
Denmark 46.04
12009. Interpreted as natural gas consumed on the individual national markets.2Gasföreningen.3Statistical Agency Finland.4Danish Energy Agency.
97
Business Activities
E.ON AG
E.ON Sverige AB 100%1
Regulated Business Non-regulated Business Other/Consolidation
Power and Gas Distribution
• Distribution of electricity and
gas to end customers
Generation
Power production based on
• Nuclear
• Hydropower
• Oil/Gas
Retail
• Development, sale and delivery
of power, gas and heat to indus-
trial and private customers
Heat and Waste
• Combined heat and power
production
• Production of heat for direct
heating
Services
• Providing services for mainte-
nance and construction
10.05 percent minority shareholders.
98 Nordic Market Unit
2009 Sales
Significant market positions
• Sweden’s second-largest power company.
• No. 4 in power generation with 8 percent of total 398 bil-
lion kWh in the Nordic region.
• No. 3 in power/gas retail with 0.8 million customers in the
Nordic region.
• Substantial position in Sweden’s natural gas market with
approximately 61 percent market share in distribution.
Sales by Business Units
€ in millions
Regulated business 728
Non-regulated business 2,616
Other/consolidation 4
Total 3,348
99
Activities in the Nordic Region
Majority shareholders
Key Figures—Sweden
As of December 31, 2009 E.ON shareholdings Overall market Market share %
Electricity
Power supplied 42.7 billion kWh 138 billion kWh1 31
Customers 803,500 5,300,000 15
Distribution grid length 124,314 km 528,000 km2 24
Generation capacity 6,778 MWel 34,987 MWel 19
Generation output 18.6 billion kWh 133.7 billion kWh1 14
Natural gas
Natural gas supplied 7.0 billion kWh 14.0 billion kWh 50
Customers 25,100 ~41,0003 61
Transmission system length 204 km 650 km2 31
1Energimyndigheten.2ERGEG, The Energy Markets Inspectorate EI R2009:08.3Number of reading points, including gas-stoves.
Europe
E.ON Sverige
Denmark
Norway
Sweden
FinlandE.ON Suomi Oy
Kainuun Energia Oy
E.ON ES Norge
Karhu Voima Oy
E.ON Danmark
100 Nordic Market Unit
Business Activities along the Value Chain
18.0 billion kWh of jointly operated stations.
2009 Power Procurement and Sales Volume
Own generation
19.0 billion kWh
Other suppliers1
27.3 billion kWh
Power procured
46.3 billion kWh
Power sales
44.5 billion kWh
Procurement Sales volume
Sales partners
Nord Pool
26.6 billion kWh
Industrial & commercial
customers
10.8 billion kWh
Private customers
7.1 billion kWh
Transmission losses,
other
1.8 billion kWh
Upstream Downstream
Generation Distribution Retail
non-regulated regulated
PowerGas
101
Generation Capacity by Sources
Power Generation Capacity by Energy Source
MW 2009 2008 2007 2006 2005
Nuclear 2,770 2,593 2,601 2,593 2,608
Hydro 1,768 2,758 2,754 2,751 2,771
Renewables1 0 0 51 52 –
Oil, other 2,304 1,778 2,031 2,015 2,215
E.ON Sverige 6,842 7,229 7,437 7,411 7,594
Thermal2 23,575 23,984 23,539 22,003 22,003
Nuclear 11,584 11,988 11,288 11,632 11,632
Hydro 48,776 48,784 47,925 47,445 47,445
Renewables 11,591 11,496 10,230 10,219 10,219
Nordic market overall 95,525 96,251 92,982 91,299 91,299
1Transferred to the new market unit Climate & Renewables as of January 1, 2008.2Includes coal, oil, gas, other.
102 Nordic Market Unit
Location of Major Generation Assets
Nuclear power station
(including jointly owned power stations)
Gas-fired power station
Oil-fired power station
Hydroelectric power station
Biofuel
Europe
Norway
Denmark
Sweden
Finland
103
Generation Assets
Nuclear Power Stations
As of December 31, 2009 Shareholders Net MW
E.ON share Start-up date% MW
Forsmark 1 MKG/Vattenfall 978 9.3 91 1980
Forsmark 2 MKG/Vattenfall 990 9.3 92 1981
Forsmark 3 MKG/Vattenfall 1,170 10.8 126 1985
Oskarshamn 1 E.ON Sverige/Fortum 467 54.5 255 1972
Oskarshamn 2 E.ON Sverige/Fortum 640 54.5 349 1974
Oskarshamn 3 E.ON Sverige/Fortum 1,400 54.5 763 1985
Ringhals 1 E.ON Sverige/Vattenfall 855 29.6 253 1976
Ringhals 2 E.ON Sverige/Vattenfall 866 29.6 256 1975
Ringhals 3 E.ON Sverige/Vattenfall 1,045 29.6 309 1981
Ringhals 4 E.ON Sverige/Vattenfall 935 29.6 276 1983
Total 9,346 2,770
Oil-fired Power Stations
As of December 31, 2009 Shareholders Net MW
E.ON share Start-up date% MW
Barsebäck GT E.ON Sverige 84 100.0 84 1974
Bråvalla E.ON Sverige 240 100.0 240 1972
Halmstad G11 E.ON Sverige 78 100.0 78 1973
Halmstad G12 E.ON Sverige 172 100.0 172 1993
Karlshamn G1 E.ON Sverige/Fortum 336 70.0 235 1971
Karlshamn G2 E.ON Sverige/Fortum 336 70.0 235 1971
Karlshamn G3 E.ON Sverige/Fortum 332 70.0 232 1973
Cresundsverket GT E.ON Sverige 126 100.0 126 1971
Oskarshamn GT E.ON Sverige/Fortum 80 54.5 44 1973
Other (<50 MW installed capacity) 77 41
Total 1,861 1,487
Gas-fired Power Stations
As of December 31, 2009 Shareholders Net MW
E.ON share Start-up date% MW
Heleneholm G11, G12 E.ON Sverige 130 100.0 130 1966+1970
Öresundsverket ÖVT(CHP) E.ON Sverige 450 100.0 450 2009
Total 130 130
104 Nordic Market Unit
Generation Assets
Hydroelectric Power Stations
As of December 31, 2009 Shareholders Net MW
E.ON share Start-up date% MW
Balforsen E.ON Sverige 88 100.0 88 1958
Bergeforsen E.ON Sverige/Vattenfall 160 44.0 70 1955
Blåsjön E.ON Sverige/Fortum/Nybrovikenskraft 60 50.0 30 1957
Degerforsen E.ON Sverige 63 100.0 63 1965
Edensforsen (Åseleälven) E.ON Sverige 67 96.5 65 1956
Edsele E.ON Sverige 60 100.0 60 1965
Forsse E.ON Sverige 52 100.0 52 1968
Gulsele (Åseleälven) E.ON Sverige/Vattenfall 68 65.0 44 1955
Hällby (Åseleälven) E.ON Sverige/Vattenfall 84 65.0 55 1970
Hjälta E.ON Sverige 178 100.0 178 1949
Moforsen E.ON Sverige 135 100.0 135 1968
Löwön E.ON Sverige 36 100.0 36 1974
Pengfors E.ON Sverige 56 65.0 36 1954
Ramsele E.ON Sverige 157 100.0 157 1958
Rätan E.ON Sverige 60 100.0 60 1968
Sollefteåforsen E.ON Sverige/Municipality of Sollefteå 62 50.0 31 1966
Stensjön (Harkan) E.ON Sverige/Nybrovikenskraft 95 50.0 48 1968
Storfinnforsen E.ON Sverige 112 100.0 112 1953
Trangfors E.ON Sverige 73 100.0 73 1975
Other (<50 MW installed capacity) 1,910 792
Total 3,576 1,768
Other Power Stations
As of December 31, 2009 Net MW
E.ON share Start-up date% MW
Abyverket G1, G2, G3 (CHP) 128 100.0 128 1962–1974
Händelö (Norrköping) (CHP) 90 100.0 90 1983
Kainuun Voima (CHP) 72 26.0 18 1989
Other (<1 MW attributable capacity) 2,250 1
Total 2,540 237
Shutdown
As of December 31, 2009 E.ON share % Start-up date Shutdown date
Barsebäck 1 (nuclear) 25.8 1975 1999
Barsebäck 2 (nuclear) 25.8 1977 2005
105
Generation Output by Sources
Power Generation Output by Energy Source
Billion kWh 2009 2008 2007 2006 2005
Thermal 2.4 1.7 1.05 2.1 2.1
Nuclear 8.5 15.4 15.7 16.6 17.5
Hydro 8.1 13.3 10.4 15.4 13.4
Renewables1 0 0.1 0.2 0.2 0.2
E.ON Sverige 19.0 30.5 27.4 34.3 33.1
Thermal 55.22 72.7 50.4 50.4 69.1
Nuclear 72.62 87.0 91.8 91.8 96.8
Hydro 203.72 192.4 222.2 222.2 183.6
Renewables 35.92 31.7 30.5 30.5 29.9
Nordic market overall 367.42 383.8 394.9 394.9 379.3
1Not considering hydroelectric and biomass; transferred to the new market unit Climate & Renewables as of January 1, 2008.2Preliminary figures, Nordel, May 2009.
106 Nordic Market Unit
Distribution Regions in Sweden and Finland
Europe
Mid-Norrland
81,000 customers
Mälardalen/Örebro
100,500 customers
Stockholm
120,000 customers
Norrköping
106,000 customers
Southern Sweden
595,000 customers
Denmark
Norway
Sweden
Finland
Kainuun Energia
57,000 customers
Karhu Voima
13 industrial
customers
107
The Natural Gas Market in Sweden
• Gas distribution market in Sweden: 10 billion kWh.
• E.ON Sverige market share in gas distribution: 55 percent.
• Gas represents approximately 20 percent of total energy
supply in the Nordic region, while at the national level,
it comprises somewhat less than 2 percent of Sweden’s
total energy supply.
• The 390 km national gas transmission pipeline is owned
by Swedegas AB.
• E.ON Sverige owns, operates and maintains a regional high-
pressure gas pipeline with a length of 230 km and a low-
pressure gas distribution pipeline with a length of 1,855 km.
• In addition, E.ON Sverige has an underground gas storage
facility in Getinge with a working capacity of 8.75 million m3
and a maximum withdrawal rate of 40,000 m3/hour. In
2009, E.ON Sverige transported a total of 7.6 billion kWh
of gas through its gas pipeline system.
• All gas is imported from Denmark. The Swedish natural
gas market is currently connected to the Danish natural
gas market through one supply route. Sweden’s strategic
location between two of the largest producers, Russia
and Norway, has led to the initiation of several studies
and projects with the aim of increasing supplies to or
via Sweden.
Europe
Gas pipeline
StenungssundBorås
Gnosjö Gislaved
Stockholm
Hyltebruk
Åstorp
KlippanBjuv
Eslöv
LundStaffanstorp
Svedala
Göteborg
Varberg
Falkenberg
Halmstad
Ängelholm
Höganäs
Helsingborg
Landskrona
Malmö
Trelleborg
108 Nordic Market Unit
2009 Gas Procurement and Sales Volume
Key Figures
Gas procured
8.1 billion kWh1Distribution
Industrial customers
4.0 billion kWh1
Private customers
0.2 billion kWh1
Wholesale
0.4 billion kWh1
Own power and heat
generation
3.5 billion kWh1
Procurement Sales volume
1Including liquefied petroleum gas and biogas.
Nordic Key Figures
in millions 2009 2008 +/- %
Total sales 3,348 3,877 -14%
Adjusted EBITDA 851 1,112 -23%
Adjusted EBIT 535 770 -31%
ROCE 8.8% 11.1% -2.3%1
Cost of capital 9.3% 9.3% -0%1
Value added -30 125 -124%
Cash provided by operating activities 523 835 -37%
Investments 1,104 939 +18%
Employees (at year-end) 5,570 5,826 -4%
1Change in percentage points.
E.ON Group
109
U.S. MidwestMarket Unit
110 Introduction
110 Market Overview Power
111 Business Activities
112 2009 Sales
113 Power Service Territory
114 Gas Supply Area
115 Power Business Activities along the Value Chain
115 2009 Power Procurement and Sales Volume
116 Generation Capacity and Output by Sources
117 Generation Assets
121 Distribution Map
122 Supply Structure
122 Power and Gas Customers
123 U.S. Midwest Region
124 Key Figures
110 U.S. Midwest Market Unit
Introduction
E.ON U.S. is an integrated energy services company with busi-
nesses in power generation, electric utility and retail gas ser-
vices, as well as asset-based energy marketing. Asset-based
energy marketing involves the off-system sale of excess power
generated by physical assets owned or controlled by E.ON U.S.
and its affiliates. E.ON U.S.’s power generation and retail elec-
tricity and gas services are located principally in Kentucky, with
a small customer base in Virginia and Tennessee. As of Decem-
ber 31, 2009, E.ON U.S. owned or controlled aggregate gener-
ating capacity of approximately 7,500 MW. In 2009, E.ON U.S.
served almost 1 million customers. The U.S. Midwest market
unit recorded sales of €1,843 million in 2009 and adjusted EBIT
of €384 million.
In April 2010, E.ON sold the power and gas business of E.ON U.S.
to PPL Corporation. The agreed-on purchase price is €7.6 bil-
lion. We expect the transaction, which is subject to antitrust
and regulatory approval, to close in late 2010. Effective the
second quarter, E.ON U.S. will be classified as a discontinued
operation for the entire financial year.
Market Overview Power1
Generation
~36 operators
(Ohio Power Co, Virginia Electric & Power Co, Detroit
Edison Co, Duke Energy Indiana and Appalachian Power Co
account for ~47% of the market)
Trading
~51 operators
(Ohio Power Co, Indiana Michigan Power Co, Ohio Valley
Electric Corp, Wabash Valley Power Assoc., and Appala-
chian Power Co account for ~41% of the market)
Transmission
~57 operators
(Appalachian Power Co, Virginia Electric & Power Co, ITC
Midwest LLC, American Transmission Co, and American
Transmission Systems account for ~32% of the market)
Distribution
~94 operators
(Commonwealth Edison Co, Consumers Energy Co, Detroit
Edison Co, Appalachian Power Co, and Virginia Electric &
Power Co account for ~29% of the market)
Retail
~46 operators
(Commonwealth Edison, Detroit Edison Company, Public
Service Electric & Gas, Consumers Energy and Virginia
Electric & Power Co account for ~36% of the market)
U.S. Midwest Power and Gas Supply
Billion kWh Supply1
Power 1,064
Gas 1,026
1As of 2008, EIA.
1Based on operating company data.
111
Business Activities
E.ON AG
E.ON U.S. LLC 100%1
Regulated Utilities Non-regulated Business
Louisville Gas & Electric
Company (LG&E) 100%
Kentucky Utilities
Company (KU) 100%
E.ON U.S. Capital Corp.
LG&E Energy Marketing 100%
E.ON U.S. Services Inc. 100%
Centro 45.9%
Cuyana 14.2%
1Based on operating company data.
112 U.S. Midwest Market Unit
Significant market positions
• One of the U.S.’s lowest-cost energy providers.
• Honored several times by JD Power for outstanding
customer satisfaction.
• More than 7.5 GW of low-cost generation capacity.
• Proven environmental track record through the reduction
of SO2 by 58 percent and NOX by 60 percent per unit
since 1990.
2009 Sales
€ in millions Total: €1,843 million
1,798 Regulated business
45 Non-regulated/other
Sales
113
Power Service Territory
LG&E
Kentucky Utilities
Power Sector
E.ON U.S. LLC
shareholdings Kentucky marketE.ON U.S. LLC market share in Kentucky %
Power supplied 32.4 billion kWh 88.8 billion kWh 36.0
Customers 0.9 million 2.2 million1 41.0
Transmission system length 4,944 miles 13,363 miles1 37.0
Generation capacity 7,507 MW 23,362 MW1 32.0
Generation output 30.9 billion kWh 91 billion kWh 34.0
12008 data.
Falmouth
Henderson
Madisonville
PrincetonPaducah
Maysville
Alexandria
Williamstown
Cynthiana
MoreheadGeorgetownFrankfort
Louisville
Lexington Winchester
Nicholasville
RichmondDanville
BardstownRadcliff
ElizabethtownLebanon
Greensburg
Cave City
Columbia
Mount Vernon
LondonSomerset
CumberlandCorbin
PinevilleHarlan
Middlesborough
Valley
Station
U.S. Midwest
114 U.S. Midwest Market Unit
Texas Gas transmission line
Tennessee Gas transmission line
Major gas line
Gas take point
Town served
Underground gas storage field
Gas Supply Area
Natural Gas Sector
E.ON U.S. LLC
shareholdings Kentucky market1
E.ON U.S. LLC market share in Kentucky %
Sales volume 12.6 billion kWh 66.0 billion kWh 19.0
Customers 0.32 million 0.84 million 38.0
Gas storage2 8.0 billion kWh 64.6 billion kWh 12.0
12008 data.2Total capacity.
Trimble
Bedford
Campbellsburg
New Castle
HenrySmithfield
Lagrange
Oldham
CrestwoodEminence
Pewee Valley Pleasureville
Simpsonville
Shelby
Mt. WashingtonFern
CreekSpencerBullitt
Shepherdsville
Jefferson
Louisville
West Point
Brandenburg
BreckinridgeRineyville
Vine
GroveRadcliff
Nelson
Bardstown
LarueHardin
Hodgenville Loretto
Buffalo
Washington
Marion
TaylorGreen
Magnolia
Hart
Center Storage Field Center
Metcalfe
Barren
Magnolia Storage Field
(Upper & Deep)
Meade
Doe Run Storage Field
Muldraugh Storage Field
U.S. Midwest
115
Power Business Activities along the Value Chain
2009 Power Procurement and Sales Volume
Own generation
30.9 billion kWh
Other suppliers
3.3 billion kWh
Electricity procured
34.2 billion kWh
Power supplied
32.4 billion kWh
Generation and procurement Sales volume1
Retail
31.6 billion kWh
Wholesale market/
Energy Trading
0.8 billion kWh
regulated
Upstream Midstream Downstream
Generation Wholesale (incl. Transmission Distribution Retail
off-system sales)Power
Transmission losses
1.8 billion kWh
1Excludes brokered sales and discontinued operations.
116 U.S. Midwest Market Unit
Generation Capacity and Output by Sources
Generation Capacity by Sources
MW 2009 2008 2007 2006 2005 2004
Gas/petroleum 2,164 2,164 2,164 2,141 2,244 2,244
Hydro 76 76 74 72 72 72
Hard coal 5,267 5,267 5,281 5,294 5,294 5,294
E.ON U.S. 7,507 7,507 7,519 7,507 7,610 7,610
Gas/petroleum/other 510,740 493,160 479,000 459,790 450,970 451,888
Hydro 76,510 76,730 76,720 100,590 95,140 98,405
Hard coal 312,860 311,210 311,370 310,660 309,330 313,020
Nuclear 101,190 100,560 100,470 100,050 100,110 99,628
U.S. market overall 1,001,300 981,660 967,560 971,090 955,550 962,941
Generation Output by Sources
GWh 2009 2008 2007 2006 2005 2004
Gas/petroleum 278 449 986 722 885 197
Hydro 299 213 167 287 231 309
Hard coal 30,336 34,776 33,510 34,183 34,508 33,915
E.ON U.S. 30,912 35,482 34,663 35,192 35,624 34,421
Gas/petroleum/other 1,122,096 1,067,845 1,091,136 997,128 984,842 943,478
Hydro 267,785 241,847 241,318 281,397 258,510 259,929
Hard coal 1,764,486 1,994,385 2,020,572 1,987,224 2,014,173 1,978,620
Nuclear 796,751 806,182 806,487 787,219 780,465 788,528
U.S. market overall 3,951,118 4,110,259 4,159,513 4,052,968 4,037,990 3,970,555
117
Generation Assets
Green River E.W. Brown Dix Dam
Trimble County
Ghent
Tyrone
Haefling
Mill Creek
Cane Run
Paddy’s Run
Ohio Falls
Zorn
Hard-coal-fired power station
Gas-fired power station
Hydroelectric power station
U.S. Midwest
118 U.S. Midwest Market Unit
Generation Assets
Hard-Coal-fired Electric Power Stations
As of December 31, 2009Total capacity
net MW
E.ON U.S.’s share
Start-up date%Attributable
capacity MW
Cane Run 41 155 100.0 155 1962
Cane Run 51 168 100.0 168 1966
Cane Run 61 240 100.0 240 1969
E.W. Brown 12 101 100.0 101 1957
E.W. Brown 22 167 100.0 167 1963
E.W. Brown 32 429 100.0 429 1971
Ghent 12 475 100.0 475 1974
Ghent 22 484 100.0 484 1977
Ghent 32 480 100.0 480 1981
Ghent 42 493 100.0 493 1984
Green River 32 68 100.0 68 1954
Green River 42 95 100.0 95 1959
Mill Creek 11 303 100.0 303 1972
Mill Creek 21 301 100.0 301 1974
Mill Creek 31 391 100.0 391 1978
Mill Creek 41 477 100.0 477 1982
Trimble County 11 511 75.0 383 1990
Tyrone 32 71 100.0 71 1953
Total 5,409 5,281
1Power station owned by LG&E.2Power station owned by KU.
119
Gas-fired Electric Power Stations
As of December 31, 2009Total capacity
net MW
E.ON U.S.’s share
Start-up date%Attributable
capacity MW
Cane Run 111 14 100.0 14 1968
E.W. Brown 53 117 100.0 117 2001
E.W. Brown 63 154 100.0 154 1999
E.W. Brown 73 154 100.0 154 1999
E.W. Brown 82 106 100.0 106 1995
E.W. Brown 92 106 100.0 106 1994
E.W. Brown 102 106 100.0 106 1995
E.W. Brown 112 106 100.0 106 1996
E.W. Brown IAC3 98 100.0 98 2000
Haefling 12 12 100.0 12 1970
Haefling 22 12 100.0 12 1970
Haefling 32 12 100.0 12 1970
Paddy’s Run 111 12 100.0 12 1968
Paddy’s Run 121 23 100.0 23 1968
Paddy’s Run 133 158 100.0 158 2001
Trimble County 53 160 100.0 160 2002
Trimble County 63 160 100.0 160 2002
Trimble County 73 160 100.0 160 2004
Trimble County 83 160 100.0 160 2004
Trimble County 93 160 100.0 160 2004
Trimble County 103 160 100.0 160 2004
Zorn 11 14 100.0 14 1969
Total 2,164 2,164
1Power station owned by LG&E.2Power station owned by KU.3Power station jointly owned by LG&E and KU.
Hydroelectric Power Stations
As of December 31, 2009Total capacity
net MW
E.ON U.S.’s share
Start-up date%Attributable
capacity MW
Dix Dam2 24 100.0 24 1925
Ohio Falls1 50 100.0 50 1928
Total 74 74
1Power station owned by LG&E.2Power station owned by KU.
120 U.S. Midwest Market Unit
Generation Assets
Mothballed/Shutdown/Reduced Electric Power Stations
As of December 31, 2009Total capacity
net MW
E.ON U.S.’s share
Start-up date%Attributable
capacity MW
Green River 11 22 100.0 22 1950
Green River 21 22 100.0 22 1950
Tyrone Unit 11 27 100.0 27 1947
Tyrone Unit 21 31 100.0 31 1948
Total 102 102
1Power station owned by KU.
121
Distribution Map
Electric system
Major electricity transmission line
Gas system
Major gas line
Gas take point
Town served
Underground gas storage field
Henderson
Louisville Frankfort
Lexington
U.S. Midwest
122 U.S. Midwest Market Unit
Power and Gas Customers
Generation
Transmission
Distribution Asset-based energy marketing
Retail Wholesale (off-system sales)
Residential Commercial & industrial Other regulated
• Clear responsibilities for customer segments.
• Optimal supply chain management.
• Optimizing generation capacity by sales and trading.
Supply Structure
non-regulated regulated
• Louisville Gas & Electric and Kentucky Utilities serve over
1 million customers in 81 of Kentucky’s 120 counties.
• Kentucky Utilities also serves customers in five counties
of southwestern Virginia through Old Dominion Power
Company.
Customers in thousands1 Total: 940
E.ON U.S. Midwest—Electricity
797 Residential
127 Commercial
14 Public authority/ other businesses
2 Industrial
12009 data. 12009 data.
295 Residential
24 Commercial
1 Public authority/ other businesses
1 Industrial
Customers in thousands1 Total: 321
E.ON U.S. Midwest—Gas
123
U.S. Midwest Region
• 29 percent of U.S. electricity demand is in the Midwest.
• Important power interchanges with good network/grid
interfaces.
• Heavily industrialized region.
• Potential for consolidation in a fragmented market.
• Favorable regulatory conditions.
An attractive region within the U.S. North American pools
ChicagoDetroit
Louisville
New York
U.S. Midwest
124 U.S. Midwest Market Unit
Key Figures
U.S. Midwest Key Figures
2009 2008 +/- %
Sales €1,843 million €1,880 million -2.0
Adjusted EBITDA €552 million €549 million +0.5
Adjusted EBIT €384 million €395 million -2.8
ROCE 6.1% 6.0% +0.11
Cost of capital2 8.7% 8.7% +0.01
Value added -€163 million -€176 million +7.4
Cash provided by operating activities €342 million €271 million +26.2
Investments €545 million €650 million -16.2
Employees (at year-end) 3,119 3,110 +0.3
1Change in percentage points.2Before taxes.
Sales by Customer Segment
Billion kWh 2009 2008 +/- %
Retail customers 31.6 33.3 -5.1
Off-system sales 0.8 3.1 -74.2
Power sales 32.4 36.4 -11.0
Retail customers 12.5 13.6 -8.1
Off-system sales 0.1 0.3 -66.7
Gas sales 12.6 13.9 -9.4
125
Energy Trading Market Unit
126 Introduction
127 The Commercial Heart of E.ON
128 Market Developments
129 Overview of Market Coupling/Splitting Projects
130 Exchanges and Hubs
132 Trading Activities
133 E.ON’s Global Coal anf Freight Trading (2009)
134 E.ON Energy Trading Offices
Energy Trading Market Unit126
E.ON Energy Trading is the commercial heart of the E.ON Group
and one of Europe’s leading energy trading businesses. As
the link between E.ON and the world’s wholesale energy mar-
kets, Energy Trading buys and sells primarily electricity, natural
gas, coal, oil, and carbon allowances. Its trading activities
play a vital role in helping to ensure fair prices and secure
energy supplies for millions of customers across Europe.
Introduction
Energy Trading Key Figures
€ in millions 2009
Sales 41,251
Adjusted EBITDA 961
Adjusted EBIT 949
Trading Volume by Commodity
2009
Electricity 1,240 billion kWh
Natural gas 1,498 billion kWh
CO2 allowances 501 mmt
Oil 69 mmt
Coal 223 mmt
mmt = million metric tons.
MU Nordic
MU Central Europe
E.ON Energy Trading
MU U.K.
MU Spain
MU Italy
127
The Commercial Heart of E.ON
Vision
E.ON Energy Trading’s vision is to be the leading asset-backed
energy trader in Europe.
Role
The role of E.ON Energy Trading is integrated commodity
optimization for the E.ON Group in the short- and mid-term
three years prior to delivery. Integrated means that all
commodity risk positions for the Group created by owning
assets, including customer portfolios, are brought together
within E.ON Energy Trading.
As an asset-backed trader E.ON Energy Trading commercializes
one of Europe’s broadest and diverse asset positions, consist-
ing of about 60 GW of electricity-generating capacity and well
over 1,000 billion kWh of natural gas.
Dedicated teams of highly experienced traders work side by
side in its Düsseldorf headquarters, combing cross-commodity
and cross-market expertise. This centralized approach, which
combines E.ON Energy Trading’s integrated market view with
E.ON’s outstanding asset portfolio, enables the Group to
better manage commodity risk, maximize value from its assets,
and create additional growth.
Value creation
E.ON’s diverse and flexible range of assets provides E.ON
Energy Trading with a strong basis for creating value from opti-
mization through a range of standard and more innovative
structured and longer-term origination deals.
E.ON Energy Trading takes advantage of the growing oppor-
tunities resulting from converging regional markets in
Europe and proactively contributes to the development of
exchanges, market rules and liquidity throughout European
energy markets. This passionate belief in open and free mar-
kets directly supports the EU’s objectives of ensuring security
of supply and creating more customer choice.
E.ON Energy Trading also applies its in-depth fundamental
knowledge of pan-European and global energy markets to cre-
ate additional value through its proprietary trading activities.
2009 developments
Building on a very good performance in 2008, E.ON Energy
Trading continued to deliver substantial additional value to
the Group in 2009 with an adjusted EBIT of €949 million.
The optimization segment, the main purpose of which is to
limit risks and optimize the deployment of the E.ON Group’s
generation and production assets, contributed €825 million,
continuing its strong development from the end of 2008 and
benefited from the inclusion of Italian trading activities for
the first time. The proprietary trading segment contributed
an adjusted EBIT of €124 million, which is below the excep-
tional prior-year figure.
One key factor affecting trading operations in 2009 was the
global economic crisis, which resulted in sharp drops in all
commodity prices. Although the resulting uncertainty led to
lower trading volumes across some markets, overall energy
markets remained robust and continued to offer enough
liquidity for efficient risk management. Having a single, inte-
grated view of risk across different markets and regions is
crucial, especially in volatile markets where things move very
quickly. Energy Trading, benefiting from this integrated
approach, was able to deliver its excellent operating perfor-
mance while steering its way through the financial crisis.
In addition to posting strong results during difficult economic
conditions, E.ON Energy Trading reached a number of signifi-
cant milestones in 2009 including:
• Registering to trade at a number of new European
exchanges and gas hubs.
• Starting the supply of coal and gas to new E.ON power
stations.
• Supporting the E.ON Group with the successful divestment
of 4,800 MW of generating capacity.
• Completing its first power trade in the United States in
support of E.ON Climate & Renewables’ activities.
• Completing the full integration of Czech, Bulgarian and
Hungarian trading activities.
• Confirmation of its international status by making the
legal conversion from Aktiengesellschaft (AG) to Societas
Europaea (SE).
• Being named Energy Risk magazine’s Electricity Europe
—House of the Year 2009.
2009 Developments
€ in millions
Adjusted EBITDA Adjusted EBIT
2009 2008 2009 2008
Proprietary trading 127 180 124 179
Optimization 834 469 825 466
Total 961 649 949 645
128 Energy Trading Market Unit
Market Developments
Liberalization continues
Three years ago, E.ON made the decision to position its trad-
ing business to take advantage of opportunities presented
by the ongoing liberalization of Europe’s energy markets. Three
years on Europe’s markets have made significant progress
in this direction, although we cannot be complacent.
Markets are becoming more liquid, prices more transparent,
and risks more quantifiable, which ultimately benefits the
European economy and European consumers. Well-functioning
markets will continue to play an important role in delivering
secure energy supplies at fair prices, while helping to encour-
age much needed investment in the next generation of cli-
mate-friendly technology.
Greater physical interconnection and market coupling
bring Europe closer together
Construction of new infrastructure—interconnector cables and
pipelines, cross-border transfer capacity, and LNG regasifi-
cation terminals—is continually improving the physical inter-
connection between European markets, but more can be
done. Market coupling is also an important driver for market
integration because it facilitates cross-border trading. Market
coupling between the German and Nordic markets began
in December 2009, while in August last year the day-ahead
power markets of the Czech Republic and Slovakia were
combined, resulting in a quadrupling of liquidity on the first
day of trading. In 2010, market coupling is set to link Germany,
France, Belgium, the Netherlands and Luxembourg. The lib-
eralization process also continues through the unbundling of
transmission infrastructure.
Building trust in markets
As the world begins to emerge from the economic and finan-
cial crisis, it’s more important than ever for energy markets
to become more integrated and more open. As one of Europe’s
leading market participants, E.ON Energy Trading supports
increased market integrity and greater transparency to ensure
that governments, regulators, industry and consumers have
more trust in the market and have more confidence in the mar-
ket’s ability to help meet the significant energy challenges
that we are now facing. We support this vision by consulting
with policymakers and regulators on measures to ensure that
the development of European markets continues.
Regulatory risk
There are currently discussions both in the US and the EU that
potentially could have significant implications on the regula-
tory frameworks in which E.ON Energy Trading operates. These
discussions include proposals for the mandatory clearing of
all over-the-counter (OTC) trades. E.ON understands this and
would like to contribute to the development of a solution
which ensures a safer financial system, while taking the con-
cerns of end users of OTC derivatives into account. We see
advantages in exchange trading and clearing as a means of
increasing efficiency and mitigating credit risk. However,
the proposed mandatory clearing and exchange trading of
standardized OTC derivatives would be a significant burden
to end users of OTC derivatives. Increased capital requirements
could potentially hinder fundamental players in managing
their underlying risks and liquidity could go down. Furthermore,
it would not be proportionate as the systemic risk is lower
for products linked to the nonfinancial sector compared to
those used by financial institutions.
129
Overview of Market Coupling/Splitting Projects
Established
Nordic Market SplittingIberian Market SplittingFR/BE/NL Dec. 2006CZ/SK Sept. 2009EMCC Nov. 2009Baltic Cable to EMCC May 10
Running Projects
2 FR/BE/NL/DE 07. 09. 20103 NO/NL End 2010
Announced Initiatives
4 Nordic/CWE/Mibel5 IT/SLO Q4 20106 UK/NL (BritNed) Q2 20117 HU/RO/AT8 CZ/SK/PL/AT
4
2
5
7
8
6
3
130 Energy Trading Market Unit
Exchanges and Hubs
E.ON Energy Trading is active in over 40 countries
worldwide and at all major European energy
exchanges and hubs
Energy exchanges and hubs will continue to play a vital role
in integrating Europe’s energy markets, which will increase
liquidity and support efficiency.
E.ON Energy Trading expanded its reach and registered to
trade at several new exchanges and hubs in 2009, including
the Central European Gas Hub (CEGH) in Austria, Powernext
in France, N2EX (a new spot power exchange in the United
Kingdom), South Pool (a spot power market for Slovenia and
Serbia), and OMIP (a power exchange in Portugal for the Ibe-
rian market). In addition, it places trading volume or acts as
market maker to support the development of a number of hubs
and exchanges across Europe, including in France, Italy, Spain
and Germany. Through its activities in these marketplaces,
E.ON Energy Trading actively supports E.ON’s vision of inte-
grated, open markets. For example, trading points like Net-
Connect Germany (NCG) and CEGH are showing solid liquidity
growth and form a link between the markets of Southeastern
and Northwestern Europe.
The creation of new exchanges reflects the emergence of
larger, multicountry markets. Ultimately, not all of these
exchanges will survive and we believe the market—and energy
consumers—will benefit from further consolidation, which
would result in fewer exchanges, each with a broader geo-
graphic scope.
131
E.ON Energy Trading activities
Active
Under development
Trading activities
Spot
Futures
Option
ICE
Coal
Brent oil
Gas oil
NBP gas
Carbon
Nord Pool
Power
Carbon
POLPX
Power
EEX
Power
Gas
Carbon
Coal
PXE
Power
EEX (CH)
Power
EXAA
Power
PXE/EXAA HU
Power
HUPX
Power
IPEX
Power
South Pool (SI and RS)
Power
APX UK
Power
Gas
N2EX
Power
Bluenext
Power
Carbon
Gas
APX NL
Power
Gas
Belpex
Power
Omel
Power
Omel (PT)
Power
Omip
Power
Powernext
Endex
Power NL, BE
Gas
132 Energy Trading Market Unit
Power and emissions
Backed by an asset base that includes about 60 GW of gener-
ating capacity, E.ON Energy Trading is one of the largest play-
ers in the European wholesale electricity markets.
Our centralized power trading teams benefit from a single
integrated view on all markets and assets, improving their
ability to optimize the E.ON portfolio. They are also well-posi-
tioned to better realize the benefits of power and gas con-
vergence, trading spread products such as dark spreads, spark
spreads and regional spreads in power.
As part of its strategy to build on its existing power trading
platform, E.ON Energy Trading registered to trade at a number
of new power exchanges in 2009 including N2EX, South Pool,
and OMIP, as well as launching the trading of power contracts
in the United States in support of E.ON Climate & Renewables’
activities in Texas.
E.ON Energy Trading also has one of Europe’s leading carbon
emissions trading desks, which in turn helps the E.ON Group
meet its compliance obligations within the EU emissions
trading scheme.
Power trading volumes increased more than 40 percent in 2009
to 1,240 billion kWh, up from 878 billion kWh in 2008.
Gas and oil
E.ON is a leading participant in Europe’s wholesale gas markets.
It supplies gas to E.ON’s gas retail businesses and gas-fired
power plant and, together with its oil trading function, pro-
vides E.ON’s market units with risk management services. To
do this, it is active in all liquid and semiliquid European gas
markets, as a pan-European player optimizing E.ON’s consid-
erable gas assets, and actively supporting the development
of more liquid gas markets across Europe.
In 2009 E.ON Energy Trading registered to trade at new gas
hubs—Powernext, Central European Gas Hub, and Nord
Pool—as part of its ongoing strategy to expand gas trading
activity to improve market access and the connectivity of its
European portfolio. The gas team also secured E.ON’s first LNG
shipment into Spain, in conjunction with E.ON’s Pan-European
Gas market unit.
Gas trading volumes increased by more than 60% in 2009 to
1,498 billion kWh, up from 938 billion kWh in 2008. Oil trading
volumes increased by 50%, from 46 million tons in 2008 to
69 million tons in 2009.
Coal, Biofuels and Freight
E.ON Energy Trading is responsible for the supply of coal to
E.ON’s 21 GW of hard-coal-fired generation across Europe. As
part of that task, the business began supplying coal to E.ON’s
recently acquired French power stations in 2009. Overall, our
traders purchase about 20 million metric tones of steam coal
per year. The coal comes from all over the world, including
Russia, South Africa, Colombia, and the United States.
Since 2008, EET has seen a lot of potential to improve its
financial coal trading capabilities as well as its freight trading
and vessel management. In 2009, it began acting as its own
vessel operator. By combining coal trading and shipping, E.ON
Energy Trading is moving from pure fuel procurement to a
fully integrated global coal and ocean freight logistics business,
which can manage the whole supply chain, from sourcing
and storage, to transportation and risk management. Devel-
oping financial coal and freight trading on the back of its
increased physical position also improves its ability to better
hedge associated financial risks.
Coal trading volumes increased by more than 100% in 2009 to
223 million metric tons, up from 107 million metric tons in 2008.
Trading Activities
133
E.ON’s Global Coal and Freight Trading (2009)
CanadaCanada
East Australia
Colombia
Europe
India
Indonesia
South Africa
Far East
Far East
Coal shipping routes
Sources of steam coal 2009
134 Energy Trading Market Unit
Trading office
Dispatch office
Trading operated by
local market unit
E.ON Energy Trading
Trading locations
E.ON Energy Trading operates from a centralized trading floor
at the company’s headquarters in Düsseldorf. More than
1,000 dedicated energy professionals from 45 nations work
side by side, sharing knowledge and industry expertise.
Dispatch locations
Since the creation of E.ON Energy Trading, one team across
multiple locations has managed the dispatch of our entire gen-
eration fleet in Northwest Europe on a day-to-day basis. From
this transnational perspective, our power stations constitute
a single, European portfolio. The dispatch team has 24/7
responsibility for determining which of our European power
plant run and for how long. It works closely with the genera-
tion businesses at the Central Europe, UK, and Nordic market
units and with the gas dispatch team at Pan-European Gas.
E.ON Energy Trading Offices
135
New Market Units 136 New Markets—Russia
136 Introduction
137 Power Industry Reform—Reshaping the Market Structure
138 Power Industry Reform—Stepwise Liberalization
139 Power Market—Two Pricing Zones
141 Spot Market—Future Basis of the Power Wholesale Market
142 E.ON Russia Power—Presence along the Value Chain
142 E.ON Russia Power—Market Position
143 Russia Market Unit: Generation Assets
144 E.ON Russia Power—2009 Sales
145 E.ON Russia Power—Generation Assets and Key Figures
145 Key Figures
146 New Markets—Italy
146 Market Overview
147 E.ON Italia—Generation Structure
147 E.ON Italia—Presence along the Value Chain
148 E.ON Italia—Key Figures
148 E.ON Italia—Generation Assets
149 E.ON Italia—Gas Downstream Assets
149 Key Figures
150 New Markets—Spain
150 Market Overview
151 Market Specifics
151 E.ON España—Presence along the Value Chain
152 E.ON España—Generation Assets
153 E.ON España—Key Figures
154 Climate & Renewables Market Unit
154 Organizational Setup
155 Technologies to Be Rolled Out
156 Technologies for the First Commercial Plants
156 Technologies in Proof-of-Concept and R&D Stage
157 Focus on the Most Attractive Markets: Current Footprint
158 Generation Portfolio
159 Assets in Operation: Germany (Wind)
160 Assets in Operation: Germany (Biogas)
161 Assets in Operation: France
162 Assets in Operation: Iberia (Spain and Portugal)
163 Assets in Operation: Italy
164 Assets in Operation: Poland
165 Assets in Operation: U.K. (Part 1)
166 Assets in Operation: U.K. (Part 2)
167 Assets in Operation: Nordic
168 Assets in Operation: North America
169 Generation Capacity by Sources
169 Generation Output by Sources
169 Long-Term Targets
170 Carbon Sourcing (JI/CDM)
170 Joint Implementation (JI) and Clean Development Mechanisms (CDM)
171 Key Figures
136 New Market Units New Markets—Russia
E.ON’s operations in Russia encompass power generation,
power sales to large industrial customers, and wholesale
power marketing.
The key strategic priority for E.ON in Russia is to take advan-
tage of the promising Russian market, and in the long run
to make our business in Russia a significant contributor to
EON’s earnings. E.ON aims to gain the leading position in
Russia in terms of efficiency of operations through optimiza-
tion of existing facilities and construction of new highly effi-
cient units. In addition, we will secure a high level of safety
and environment consciousness.
E.ON Russia Power, the lead company managing our operations
in Russia, is well positioned for the ongoing liberalization of
the country’s electricity market.
Russia’s wholesale power market is divided into two separate
markets: the electricity market and the capacity market. The
progressive liberalization of the electricity market began in
2007 and will be completed by 2011. The progressive liberal-
ization of the capacity market began in July 2008 and is now
synchronized with that of the electricity market.
Through OGK-4, E.ON Russia Power has 8.3 GW of net installed
generating capacity. About 70 percent of this capacity is rela-
tively new and modern and has a high load factor. OGK-4’s
current generating capacity accounts for about 6 percent of
Russia’s total thermal capacity. A key mid-term focus is to
enlarge OGK-4’s capacity through organic growth.
We are building four high-efficiency combined-cycle gas tur-
bines (CCGTs) and one lignite-fired generating unit at our
existing power plants Surgutskaya 2, Shaturskaya, Yaivinskaya
and Berezovskaya. The new units are scheduled to enter
service in 2010–2013. Expected investments in the projects
will total about €2.3 billion.
New Markets—RussiaIntroduction
137
Power Industry Reform—Reshaping the Market Structure
• Stepwise deregulation 2007–2011.
• Introduction of new market segments
(e.g. day-ahead market, capacity market).
• Spot market and free bilateral contracts are focus of the
new market.
• Capacity is traded separately.
• Balancing market to reduce imbalances.
• Long-term capacity sales agreements are to be launched
in 2010.
• Regulated agreements —electricity and capacity are sold
under the tariffs set by the regulator.
• Day-ahead market—spot market with electricity sales on
day-ahead basis.
• Balancing market—real-time spot market.
Illustrative
Pre-reform model(before 2007)
Current model(2007–2010)
Target model(for 2011)
Regulated Agreements
Day-ahead spot market
Free agreements with
prescribed counter-
parties
Capacity market
Balancing market
• Prices are set by the regulator.
• Prescribed counterparties.
• Take-or-pay obligations for electricity and capacity volumes.
• Until 2007 tariffs on a “cost plus” basis.
• From 2008 indexation formula for setting tariffs.
• Prices are driven by demand/supply, and input fuel costs.
• Day-ahead basis.
• Price-setting and price-taking bids and offers.
• Hourly equilibrium prices.
• Free counterparties.
• Free price, terms and conditions.
• Limited volumes within the transition period until 2011.
• Fully regulated until July 1, 2008—capacity payments mainly cover generator’s fixed costs.
• Since July 1, 2008 liberalization according to power market scenario.
• Capacity auctions.
• Capacity exchange trade with link to power volumes.
• Prices are driven by demand/supply.
• Designed to eliminate imbalances between demand/supply.
• Price-setting and price-taking bids and offers.
• System services market is expected to be launched.
Evolution of Russian Electricity Market
138
Regulated sector (residential) Liberalized sector Regulated sector (industrial) New capacity + deviations from 2007 FTS balance (illustrative)
100
80
60
40
20
Source: Government Resolution No. 205 dated April 7, 2007.
1H 2007 2H 2007 1H 2008 2H 2008 1H 2009 2H 2009 1H 2010 2H 2010 1H 2011
5
95
10
10
90
10
15
85
10
25
75
10
30
70
10
50
50
10
60
40
10
80
20
10
100
10
Liberalization Scenario of the Wholesale Electricity Market in Russia
New Market Units New Markets—Russia
Power Industry Reform—Stepwise Liberalization
In April 2007, the Russian government adopted stepwise
liber alization of the electricity and capacity market.
• Liberalization ratios are applied to the electricity and
capacity volumes (liberalization of capacity sales started
2H 2008) included in the Federal Tariff System (FTS) bal-
ance for 2007 (excluding volumes sold to the households).
• Capacity and power for households are sold under regu-
lated agreements.
• Decree on the long-term capacity market has been
signed in Q1 2010.
• Heat market will remain fully regulated until special
resolution of the government.
139
Power Market—Two Pricing Zones
• The Russian power market is subdivided into two pricing
zones.
• Far East Energy System is isolated from Unified Energy
System and fragmented within itself.
• Interconnection between zones is very limited.
• Pricing zones further segmented into free power flow
zones driven by grid limitations.
• Russian transmission grid part of IPS/UPS power system.
• Feasibility study on synchronous interconnection of the
power system of IPS/UPS with UCTE has been carried
out—synchronous interconnection is feasible in the long
term but significant investment is needed.
Region with E.ON position First pricing zone Second pricing zone Energy System of Far East
Smolenskaya GRES
Smolensk region
Shaturskaya GRES
Moscow region
Berezovskaya GRES
Krasnoyarsk region
Yaivinskaya GRES
Perm regionSurgutskaya GRES-2
Tyumen region
140 New Market Units New Markets—Russia
Power Market—Two Pricing Zones
• Advantageous exposure to coal as primary fuel source.
• Hydro and coal capacities prevail in Siberia.
• No nuclear facilities.
• Reserve margins highly dependent on water levels.
• No immediate access to fuel sources in European Russia;
proximity to gas in Urals.
• Dominant positions of gas-fired generation.
• Significant share of nuclear generation.
• Relatively low reserve margins.
• Strong dependence on seasonality.
• Different merit orders.
• Different structure of electricity demand and,
accordingly, different growth rates of consumption.
Strongly different fuel mix within the two pricing zones
Percentages Percentages
First Pricing Zone (European Russia, Urals) Second Pricing Zone (Siberia)
65 Gas
17 Coal
12 Nuclear
5 Hydro
50 Hydro
2 Gas
48 Coal
141
Spot Market—Future Basis of the Power Wholesale Market
Spot market is expected to be a cornerstone for future
wholesale electricity market.
• Spot price is highly volatile due to its dependence on:
– seasonality
– weather conditions
– day of the week
– periods of maintenance
– water flows and load of hydro generation.
• Absence of a forward market further increases spot
price volatility.
• First pricing zone: spot prices are normally set by
gas-fired and fuel oil power units.
• Second pricing zone: spot prices are usually set by hydro
power plants and coal-fired generation.
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
RUB/MWh First pricing zone Second pricing zone
1/1/08 4/1/08 7/1/08 10/1/08 1/1/09 4/1/09 7/1/09 10/1/09 1/1/10
Source: Administrator of Trading System.
Spot Market Price in the First and Second Pricing Zones
142 New Market Units New Markets—Russia
E.ON Russia Power—Market Position
• Amongst leading power producers in Russia.
• No. 1 among thermal wholesale generating companies
in power generation.
• One of the leading thermal wholesale generating com-
panies in power sales.
• Leading market position in Tyumen region.
• Substantial positions in fast-growing regions:
Moscow, Perm, Krasnoyarsk and Smolensk.
E.ON Russia Power—Presence along the Value Chain
stepwise liberalization regulated
Upstream Midstream
Generation Wholesale
Power
OGK-4 Presence on Local Electricity Markets
Total capacity1, 2
MW (gross)OGK-4 capacity
MW (net)OGK-4 output
million kWh
Ural region: Tyumen oblast (first pricing zone) 11,479 4,686 35,210
Siberia region: Krasnoyarsk kray (second pricing zone) 11,258 1,418 9,425
Central region: Moscow oblast (first pricing zone) 14,988 1,017 3,636
Central region: Smolensk oblast (first pricing zone) 4,178 579 1,722
Ural region: Perm kray (first pricing zone) 6,032 568 3,955
Total Russia 219,0003 8,268 53,948
1Based on 2007.2Total capacity figures refer to installed capacity of the corresponding administrative states of the Russian Federation (“oblast”/“kray”).3Rounded.
143
Russia Market Unit: Generation Assets
Gas-fired power station
Coal-fired power station
Shaturskaya
Yaivinskaya
Surgutskaya 2
Smolenskaya
Berezovskaya
144 New Market Units New Markets—Russia
E.ON Russia Power—2009 Sales
• Regulated electricity sales 32.2 billion kWh.
• Non-regulated electricity sales 25.1 billion kWh.
• Heat sales approx. 2 billion kWh.Percentages
55 Regulated electricity sales
42 Non-regulated electricity sales
3 Heat sales
OGK-4 Sales Structure 2009
145
E.ON Russia Power—Generation Assets and Key Figures
OGK-4 Electric Power Stations
As of December 31, 2009Total capacity
MW (net)
OGK-4’s share
Start-up date%Attributable
capacity MW
Gas: Surgutskaya GRES-2 4,686 100.0 4,686 1985–1988
Coal: Berezovskaya GRES 1,418 100.0 1,418 1987–1991
Gas/coal/peat/fuel oil: Shaturskaya GRES 1,017 100.0 1,017 1971–1986
Gas/coal/peat: Smolenskaya GRES 579 100.0 579 1978–1985
Gas/coal: Yaivinskaya GRES 568 100.0 568 1963–1965
Total 8,268 8,268
OGK-4 Power Generation by Power Plant
MWh 2009 2008 2007 2006 2005
Surgutskaya GRES-2 35,210 34,408 34,406 32,884 31,936
Berezovskaya GRES 9,425 10,821 8,529 6,921 6,675
Shaturskaya GRES 3,636 5,002 4,911 4,763 4,581
Smolenskaya GRES 1,722 2,212 2,099 2,388 2,139
Yaivinskaya GRES 3,955 4,234 4,296 4,074 3,652
Total 53,948 56,676 54,241 51,030 48,983
Russia’s market overall 972,4001 1,023,3001 1,015,893 991,424 953,071
1Rounded.
Key Figures
Russia Key Figures
€ in millions 2009
Sales 973
Adjusted EBITDA 203
Adjusted EBIT 73
146 New Market Units New Markets—Italy
Market Overview
• Italy is the fourth-largest power and the third-largest gas
market in Europe.
• Up to 2008 the power sector showed an annual demand
growth of about 1 percent, whilst roughly 44 billion kWh
of power have been imported to meet Italy’s demand.
• In 2009, due to the heavy economic downturn affecting
the country, the demand collapsed to 317 billion kWh
(-6.7 percent vs. 2008).
Key drivers for power demand growth
• Demand development is mainly affected by the economic
downturn.
• Economic recovery is expected to return demand on
growth track, with demand from service sector being a
main driver.
New Markets—Italy
• The future demand growth in the gas sector is expected
to be driven mainly by increasing consumption from gas-
fired power plants.
2009
317
Billion kWh
Power Demand Development
2004
325
2005
330
2006
337
2007
340
2008
339
2003
321
340
330
320
Source: Terna.
147
E.ON Italia—Generation Structure
non-regulated regulated
1To be transferred to Energy Trading.
E.ON Italia—Presence along the Value Chain
Upstream Midstream Downstream
Generation Trading1 Distribution Retail
PowerGas
Percentages Total: 16.5 billion kWh
1December 2009. Source: Italian Energy Authority.
60 Gas
26 Coal
13 Hydro 1 Other
Market Unit Italy—Generation Structure1
148 New Market Units New Markets—Italy
E.ON Italia—Key Figures
E.ON Italia—Generation Assets
Italy market unit: generation assets
1E.ON’s stake: 58.4 percent; accounted for as an associated company.2E.ON’s stake: 50 percent; accounted for as an associated company.3E.ON’s stake: 75 percent.
Tavazzano
1,740 MW
Ostiglia
1,450 MW
CEF1
142 MW
Terni
530 MW
Scandale2
814 MW
Livorno Ferraris3
805 MW
Fiume Santo
980 MWCET1
143 MW
Trapani
170 MW
CCGT power station
Hydro power station
Gas-fired power station
Coal-fired power station
Key Figures (2009)
GW E.ON Italia Overall market
Generation capacity 5.6 103.21
1Terna estimate.
Europe
149
E.ON Italia—Gas Downstream Assets
Current gas downstream assets
Key Figures
Italy Key Figures
€ in millions 2009
Sales 4,964
Adjusted EBITDA 821
Adjusted EBIT1 540
1Adjusted EBIT is affected by purchase price allocation effects.
Italy
Majority shareholdings
Minority shareholdings
Europe
150
Percentages Total: 93 GW
33 Renewables
24 CCGT
Fuel/Gas 4
Hydro 17
Nuclear 8
Coal 14
Source: Red Eléctrica.
Generation Market Structure (by installed capacity)
New Market Units New Markets—Spain
Market Overview
• Fifth-largest market in Europe (9 percent of EU30).
• One of the largest fast-growing power markets in
Europe.
• Diversified fuel mix.
After years of growth, power demand decreased drastically in
2009 due to economic crisis and lower industrial consumption.
Opportunities due to changing generation structure.
• Replacement of old generation capacity currently
under way.
• Shift in fuel types, from domestic coal and oil towards
gas and renewables.
New Markets—Spain
Percentages Total: 263 billion kWh
30 Renewables
29 CCGT
Fuel/Gas 1
Hydro 9
Nuclear 19
Coal 12
Source: Red Eléctrica.
Generation Market Structure (by production)
Billion kWh
Power Demand Development
260
250
240
Source: Red Eléctrica.
2004
236
2009
251
2005
246
2006
253
2007
262
2008
264
151
Market Specifics
E.ON España—Presence along the Value Chain
• Renewables and CHP constitute a significant share of
the fuel mix (26 percent of the total demand in 2009).
• Gas market capacity increase: 1) new pipeline from
Algeria (Medgaz) in 2009, and 2) new LNG facilities will
be running in the following years.
• Full commitment to CO2 reduction limits, emissions
regulations, energy efficiency and smart metering
implementation.
non-regulated regulated
1From July 1, 2009 clients under P<10kW could have regulated tariff.2To be transferred to Energy Trading.
Upstream Midstream Downstream
Generation Trading2/Supply Distribution Retail1
Power
• Full liberalization of gas and electricity markets took
place in July 2009. Regulated tariffs were eliminated;
only Last Resort Supply for vulnerable consumers
remains.
152 New Market Units New Markets—Spain
E.ON España—Generation Assets
Location of assets and fuel types
Power Generation Capacity by Fuel Type
MW 2009
Coal 1,433
Gas (CCGT) 1,213
Hydro 707
Spain market unit 3,353
1Not including 26 MW Aguayo/Aguilar conventional hydro power plant.Note: Begasa hydro power plant (4.7 MW total installed capacity, 55% E.ON interest) is not represented on the map.
A technologically advanced CCGT located in Algeciras on
Spain‘s southern coast began operational testing in late 2009
and will enter service in mid-2010. It will increase our total
capacity in Spain to 4.2 GW.
Navia
202 MW
Picos
114 MW
Puente Nuevo
324 MW
Bahía de Algeciras
820 MW planned
Los Barrios
567 MW
Aguayo1
362 MW
Cercs
162 MW
Tarragona
395 MW
Escatrón
818 MW
Escucha
159 MW
Puertollano
221 MW
Hydro power station
Coal-fired power station
CCGT power station
Europe
153
Position in power distribution
Network 30,700 km
Distributed power 3.0 billion kWh
Customers 670,000
Power sales
Smart metering
• Targets established by the Spanish government imply
that by 2014 50% of meters should be based on a smart
technology. By 2018, 100% should be accomplished.
• E.ON España has over 157,000 smart meters already
installed.
• Plan for a complete rollout of 752,000 smart meters by
2014—well ahead of the legal deadline.
Power Sales
Million kWh 2009
Residential customers and small and medium enterprises 2,575
Industrial and commercial customers 2,075
Market sales 11,055
Total 15,655
E.ON España—Key Figures
Spain Key Figures
€ in millions 2009
Sales 1,346
Adjusted EBITDA 227
Adjusted EBIT1 103
1Adjusted EBIT is affected by purchase price allocation effects.
• Continued investments in infrastructure and technology
will enable us to further enhance our service quality, and
will help our customers use energy more efficiently.
154
Business Units
Nordic North America Carbon Sourcing
Central Europe Biogas/Biomethane
U.K. Emerging Technologies &
New Markets
Iberia Solar Photovoltaic (PV)
Italy
Board
Corporate Functions Operational Functions
Strategy, Business Development &
Stakeholder Management
Finance and Business Control
HSSE1
Business Services
Procurement
Construction
Asset Strategy and Technical Excellence
New Market Units Climate & Renewables Market Unit
Organizational Setup
Climate & Renewables Market Unit
Key strategic issues
• Shaping the next stage of industry development as a
leading global player with a lookout on worldwide
opportunities.
• Focus on scalable technologies, scalable already or in
the future, moving the business from boutique to indus-
trial standards and scale.
• A fast and consistent pace of operational delivery in
order to build material renewables capacity.
1Health, Safety, Security & Environment.
• Superior value chain management together with first-
class assets, locations and strategic partnerships with
industry leaders such as Siemens, Masdar and Abengoa
give E.ON Climate & Renewables a competitive
advantage.
• Flexible and agile organization with a diverse and experi-
enced workforce along with a strong performance drive.
• Fully leveraging existing Group-wide skills and
capabilities.
155
Wind
Onshore• 70 wind parks currently in operation; 2,754 MW worldwide.
• Long-term experience in Germany and U.K.
• Commissioning of Roscoe, the world‘s largest wind farm
in late 2009.
• Papalote II (approx. 200 MW) to be commissioned during
2010.
Offshore• First mover in market (Blyth, U.K.; 2000).
• 4 operational offshore wind parks in Europe with 113 MW
in U.K., Denmark and Germany.
• Robin Rigg, a 180 MW project, to be commissioned in
April 2010.
• alpha ventus, Germany’s first offshore wind farm, is a
pioneering deepwater far-shore project in a joint venture
with our partners EWE and Vattenfall. It was completed
in late 2009.
• Start of construction of London Array1 Phase I (630 MW)
in late 2009, with all equipment contracts secured.
• Rødsand (Denmark), a 207 MW project under construction,
to be completed in 2010.
• E.ON will contribute around 40% of the total European
offshore capacity growth in 2010.
E.ON Climate & Renewables’ intention is to become a leading
player and to drive the market development to scale.
Biogas/biomethane
• E.ON Climate & Renewables have several biogas and bio-
methane plants across Europe and ten years experience
in pace-setting biomethane Research & Development (R&D).
• E.ON Climate & Renewables owns and operates the larg-
est biomethane plant in Europe (Schwandorf, Germany).
• E.ON Climate & Renewables subsidiary E.ON Bioerdgas
GmbH has increased its portfolio from 90 million kWh/year
up to 400 million kWh/year.
• Project pipeline of 2,000 GWh/year in various stages of
development.
Biomass
Biomass refers to solid biomass (wood, wood waste, straw,
agricultural waste) for generating power and heat through
a combustion technology.
• Steven’s Croft (44 MWel), one of the largest wood-burning
plants in Europe, was commissioned by E.ON Climate &
Renewables in the last quarter 2007.
E.ON Climate & Renewables is looking to extend a strong
current position through focus on developing and operating
large coastal and inland plants, as well as building experience
in cutting-edge gasification technology.
Our purchasing of biomass will strictly ensure that the eco-
logical and ethical benefits of these technologies are not put
at risk.
Small hydro
The further development of this technology will be managed
within the E.ON Group through the Competence Centre Hydro
in Nordic.
Technological Focus
– Technologies to Be Rolled Out
1Joint venture of E.ON (30%), Dong (50%) and Masdar (20%).
156 New Market Units Climate & Renewables Market Unit
Technological Focus
– Technologies for the First Commercial Plants
– Technologies in Proof-of-Concept and R&D Stage
Solar
These are the technologies in which we are focused on the
first commercial plants:
• The first commercial photovoltaic plants have built our
know-how with various technologies:
– Le Lauzet (France), the Group’s first solar ground plant,
with a capacity of 2.5 MW. The first megawatt is using
Malibu thin-film technology, the rest of the plant uses
state-of-the-art poly crystalline silicon modules.
– Fiumesanto power plant (Italy), very-high-efficiency
monocrystalline silicon modules have been integrated
into a parking structure in a very short time.
– Besides modules, we are evaluating various Balance of
Plant Architectures and equipments for optimization.
• Co-location/sun farms:
– We will review our wind portfolio for complementary
photovoltaic/thin-film installations.
– Developing solar farms in sun belt.
Ocean energy
• E.ON Climate & Renewables started to explore ocean
energy in 2005 in U.K.
• Planning commercial trials of ocean energy from 2010
and 2011 (~1 MW).
– Pelamis wave technology, a full-scale ocean testing of
commercial-scale device is scheduled for May 2010.
E.ON Climate & Renewables is driving technology development
and will focus on devices with potential to deliver scale and
rapid reduction in capital and operating costs.
• CSP—concentrating solar power1
– In 2009 E.ON Climate & Renewables has realized its
market entry into the CSP business through a joint
venture with its partner Abengoa Solar.
– The joint venture has 2x50 MW of projects under con-
struction in Spain, which will be commissioned in 2011.
– The scale of these CSP plants is significantly greater
than PV. This will play to our strengths of developing
large-scale generation technologies.
E.ON Climate & Renewables will drive cost-effective solutions
together with step change potential for cost reduction and
reliability.
1Identical to solar thermal plants.
157
Focus on the Most Attractive Markets: Current Footprint
Installed renewables capacity as of December 2009 (MW1)
North America
1,720
Total
2,957
90 Other renewables
2,867 Wind
U.K.
245
Germany
208
Nordic
52
Europe (others)
58
396
IberiaItaly
278
1E.ON equity MW (figures rounded), excluding large hydro. Source: E.ON.
158 New Market Units Climate & Renewables Market Unit
Generation Portfolio
0 200 400 600 800 1,000 1,200 1,400 1,600
Denmark 33.1
Germany
Italy
207.9
278.1
France 43.7
Poland 13.3
Portugal 74.8
Spain 320.7
Sweden 18.9
U.K. 245.1
U.S. 1,720.1
1Excluding large hydro.
MW Installed capacity: 2,957 MW
Installed Renewables Capacity as of December 20091
Percentages
Onshore wind 94
Biogas/biomethane 1
1 Biomass
4 Offshore wind
<1 Other
Renewables Generation Portfolio as of December 2009
159
Assets in Operation: Germany (Wind)
Europe
Wind Parks in Germany
Onshore wind Project location Project status Net capacity (MW1) Commissioning year
1 Brandenburg In operation 50.8 2001
2 Mecklenburg-West Pomerania In operation 36.7 2001
3 Saxony-Anhalt In operation 19.9 2002
4 Saxony In operation 23.6 2004
5 Kessin In operation 0.4 2002
6 Schönerlinde In operation 0.8 2002
7 Riethnordhausen In operation 7.4 2007
8 Rheiner Windpark In operation 2.5 2002
9 Dargelütz In operation 22.0 2006
10 Helmstedt-Treue In operation 8.0 2005
11 Treue-Ost In operation 8.0 2007
12 Cuxhaven In operation 2.5 2006
Offshore wind Project location Project status Net capacity (MW1) Commissioning year
13 alpha ventus In operation 15.8 2009
Total 198.4
1E.ON equity MW (figures rounded). Source: E.ON.
Operating Sites
Offices
1
6
4
1213
3
10
11
8
5
2
7
9
Essen
Düsseldorf
Munich
Potsdam
160 New Market Units Climate & Renewables Market Unit
Assets in Operation: Germany (Biomass, Biogas and Biomethane)
Europe
Biomass, Biogas and Biomethane Plants in Germany
Biogas Project location Project status Net capacity (MW1) Commissioning year
1 Ducherow In operation 0.9 2008
2 Malchin In operation 3.7 2007
3 Roggenhagen In operation 0.1 2006
4 Fürstenwalde In operation 0.5 1998
5 Hasenwinkel In operation 0.4 2007
6 Ketzin In operation 0.7 2007
7 Sauen In operation 0.4 2006
8 Kaakstedt In operation 0.8 2006
9 Sembten In operation 1.6 2008
10 Havelberg In operation 0.4 2009
Total 9.5
1E.ON equity MW (figures rounded). Source: E.ON.
Operating Sites
Offices
1
6
10
11
1314
12
4
3
8
5
2
7
9
Essen
Düsseldorf
Munich
Potsdam
161161
Assets in Operation: France
Europe
Onshore Wind Parks in France
Onshore wind Project location Project status Net capacity (MW1) Commissioning year
1 Lehaucourt In operation 10.0 2007
2 Ambon In operation 10.0 2008
3 LV Cernon In operation 10.0 2008
4 CE Cernon In operation 3.7 2008
5 Muzillac In operation 10.0 2008
Total 43.7
1E.ON equity MW (figures rounded). Source: E.ON
Operating Sites
Office
Paris 3/4
1
25
162
Operating Sites
Offices
New Market Units Climate & Renewables Market Unit
Assets in Operation: Iberia (Spain and Portugal)
Europe
Onshore Wind Parks in Portugal
Onshore wind Project location Project status Net capacity (MW1) Commissioning year
14 Joguinho (Torres Vedras) In operation 11.7 2006
15 Alto Folgorosa In operation 8.1 2008
16 Espinhaço de Cão In operation 10.0 2008
17 Barão São João In operation 45.0 2009
Total 74.8
1E.ON equity MW (figures rounded). Source: E.ON.
Onshore Wind Parks in Spain
Onshore wind Project location Project status Net capacity (MW1) Commissioning year
5 Ascoy In operation 1.5 1998
6 Bodenaya In operation 18.0 2005
7 Zaragoza In operation 125.6 2006
8 Carcelén In operation 11.4 2004
9 Páramo de Poza In operation 15.0 2002
10 Pax In operation 19.2 1997
11 Pico Gallo In operation 24.4 2001
12 Mingorrubio In operation 26.0 2009
13 Sierra de Tineo In operation 44.0 2009
Total 285.1
1E.ON equity MW (figures rounded). Source: E.ON.
Biomass and Small Hydro Sites in Spain
Biomass Project location Project status Net capacity (MW1) Commissioning year
1 Juneda (Lerida) In operation 4.3 2001
2 VAG (Lerida) In operation 6.0 2004
Small hydro Project location Project status Net capacity (MW1) Commissioning year
3 Giribaile (Jaén) In operation 20.0 2007
4 E2I project (Murcia) In operation 5.3 1959
Total 35.6
1E.ON equity MW (figures rounded). Source: E.ON.
Madrid
Lisbon
9
1/2
1311 6
14
15
16 17
12
8
3
5
4
7
10
163
Assets in Operation: Italy
Europe
Onshore Wind Parks in Italy
Onshore wind Project location Project status Net capacity (MW1) Commissioning year
1 Florinas In operation 20.0 2004
2 Vizzini In operation 23.8 2006
3 Trapani In operation 32.3 2007
4 Montecute In operation 44.0 2006
5 Poggi Alti In operation 20.0 2006
6 Marco A. Severino In operation 44.0 2007
7 Iardino In operation 14.0 2005
8 Serra Pelata In operation 42.0 2007
9 Piano di Corda In operation 38.0 2007
Total 278.1
1E.ON equity MW (figures rounded). Source: E.ON.
Operating Sites
Offices
3
1 4
8/9
5
2
6
7
Rome
Milan
164 New Market Units Climate & Renewables Market Unit
Assets in Operation: Poland
Europe
Onshore Wind Parks in Poland
Onshore wind Project location Project status Net capacity (MW1) Commissioning year
1 Lebcz 1 (Gdańsk) In operation 5.9 2007
2 Lebcz 2 (Gdańsk) In operation 7.4 2008
Total 13.3
1E.ON equity MW (figures rounded). Source: E.ON.
Operating Sites
Office
Szczecin
1 2
165
Assets in Operation: U.K. (Onshore Wind)
Onshore Wind Parks in U.K.
Onshore wind Project location Project status Net capacity (MW1) Commissioning year
1 Askam (Cumbria) In operation 4.6 1999
2 Bessy Bell (Northern Ireland) In operation 5.0 1995
3 Blood Hill (Norfolk) In operation 2.3 1992
4 Bowbeat (Scotland) In operation 31.2 2002
5Deucheran Hill (Kintyre Peninsula) In operation 15.8 2001
6Great Eppleton (Northumberland) In operation repower
7 Holmside (County Durham) In operation 5.1 2004
8 High Volts (County Durham) In operation 7.8 2004
9 Hare Hill (County Durham) In operation 5.1 2004
10 Lowca (Cumbria) In operation 4.6 2000
11 Oldside (Cumbria) In operation 5.4 1996
12 Out Newton (Northumberland) In operation 9.1 2002
13 Ovenden Moor (Yorkshire) In operation 4.6 1993
14 Rheidol (Wales) In operation 2.4 1997
15 Rhyd-y-Groes (Wales) In operation 3.6 1992
16 Royd Moor (Yorkshire) In operation 3.3 1993
17 Siddick (Cumbria) In operation 4.2 1996
18 St. Breock (Cornwall) In operation 5.0 1994
19 Stags Holt (Cambridgeshire) In operation 18.0 2007
Total 137.1
1E.ON equity MW (figures rounded). Source: E.ON.
Europe
Operating Sites
Office
12
3
18
14
15
1
10
11
8
4
5
27
9
6
17
13 16
19
Coventry
166 New Market Units Climate & Renewables Market Unit
Assets in Operation: U.K. (Biomass and Offshore Wind)
Offshore Wind Parks and Biomass Plants in U.K.
Biomass Project location Project status Net capacity (MW1) Commissioning year
1 Steven’s Croft (Lockerbie) In operation 44.0 2008
Offshore wind Project location Project status Net capacity (MW1) Commissioning year
2 Blyth (Northumberland) In operation 4.0 2000
3Scroby Sands (Great Yarmouth) In operation 60.0 2004
Total 108.0
1E.ON equity MW (figures rounded). Source: E.ON.
Europe
3
1
2
Coventry
Operating Sites
Office
167
Assets in Operation: Nordic
Europe
Onshore and Offshore Wind Parks in Nordic Countries
Onshore wind Project location Project status Net capacity (MW1) Commissioning year
1 Southern Sweden In operation 18.9 2003–2007
Offshore wind Project location Project status Net capacity (MW1) Commissioning year
2 Nysted 1 (Gedser) In operation 33.1 2003
Total 52.0
1E.ON equity MW (figures rounded). Source: E.ON.
2
Malmö1
Operating Sites
Office
168 New Market Units Climate & Renewables Market Unit
Assets in Operation: North America
Onshore Wind Parks in U.S.
Onshore wind Project location Project status Net capacity (MW1) Commissioning year
1 Forest Creek (Texas) In operation 124.2 2007
2 Sand Bluff (Texas) In operation 90.0 2008
3 Munnsville (New York) In operation 34.5 2007
4 Roscoe (Texas)2 In operation 209.0 2008
5 Champion (Texas)2 In operation 126.5 2008
6 Panther Creek (Texas) In operation 457.5 2008/2009
7 Inadale Phase 1/2 (Texas)2 In operation 197.0 2008/2009
8 Pyron (Texas)2 In operation 249.0 2009
9 Papalote I (Texas) In operation 197.0 2009
10 Stony Creek (Pennsylvania) In operation 52.5 2009
Total 1,720.1
1E.ON equity MW (figures rounded). Source: E.ON. 2Part of the Roscoe Complex.
Chicago
Denver
Austin
3
9
10
1
2
5
4
6
7
8
Operating Sites
Office
169
Generation Capacity by Sources
Generation Output by Sources
Attributable Power Generation Capacity
MWDecember 31,
2009
Onshore wind 2,753.7
Offshore wind 112.9
Biomass 44.0
Biogas/biomethane 19.8
Small hydro 25.3
Solar PV/CSP 1.0
Total 2,956.7
Power Generation Output
GWh 2009
Onshore wind 4,509.6
Offshore wind 348.9
Biomass 242.3
Biogas 27.7
Small hydro 32.6
Total 5,161.1
Long-Term Targets
Major projects
• Major wind onshore projects in construction 2010:
Wielkopolska and Barzowice I in Poland (total 68.7 MW)
La Victoria and Matabuey in Spain (38.4 MW)
Papalote II in U.S. (~200 MW)
• Wind offshore projects in construction 2010:
London Array 630 MW (U.K.)
Robin Rigg, 180 MW (U.K.)
Rødsand II, 207 MW (Denmark)
GW Renewables capacity1
10
8
6
4
2
1Excluding large hydro.
2007
1
2010
approx. 4
2015
approx. 10
Long-Term Target Zone
170 New Market Units Climate & Renewables Market Unit
Carbon Sourcing (JI/CDM)
To help Parties meet their emission targets in the
most economically efficient way the Kyoto Protocol
put in place market-based mechanisms:
Clean Development Mechanism (CDM)• CDM projects take place between developed countries
(e.g. EU) and developing countries (e.g. China).
• CDM projects produce carbon credits called Certified
Emission Reduction (CERs).
• CERs generated by a project are based on the difference
between business-as-usual emissions and emissions with
the project, based on external audit process.
• CERs are used to offset emissions in developed
countries.
Joint Implementation (JI)• JI projects take place between industrial countries that
have an emission cap under the Kyoto protocol (e.g. Russia,
Germany).
• JI projects produce carbon credits called Emission
Reduction Units (ERUs).
• ERUs generated by a project are deducted from the host
country’s CO2 allocation.
• ERUs are to offset emissions in developed countries.
Our technology focus in different markets
Global supply for Phase II (2008–2012) is estimated
at 1–1.5 billion tons of carbon dioxide.
We aim to develop a leading carbon sourcing business
worldwide.
EC&R Carbon Sourcing Activities:
• “Make”: EC&R as project developer and minority share-
holder in offset projects.
• “Buy”: EC&R buys offset certificates from existing
projects.
• “Sell”: EC&R sells sourced certificates internally or to
third parties.
E.ON Climate & Renewables’ project development will focus on
technologies and geographical areas where we can leverage
E.ON’s existing technical knowledge, local presence and strong
partnerships. We purchase credits from robust projects and
reliable counterparties around the world.
Total portfolio of >25 Mt CO2 to be delivered by 2012.
Joint Implementation (JI) and Clean Development Mechanisms (CDM)
Southeast Asia• Local office
in Singapore
MENA region• EMIC (E.ON and Masdar
Intergrated Carbon), established January 2010
Russia• “Make” with OGK-4 in Russia
171
Key Figures
Climate & Renewables Key Figures
€ in millions 2009
Sales 466
Adjusted EBITDA 294
Adjusted EBIT 146
Production: Jung Produktion, Düsseldorf
Typesetting & Lithography: Addon Technical Solutions, Düsseldorf
Printing: Druckpartner, Essen
E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Germany
Investor Relations
T +49 2 11-45 79-5 49
F +49 2 11-45 79-5 77
Creditor Relations
T +49 2 11-45 79-5 63
F +49 2 11-45 79-3 54
Additional Information:
Ident-No. 104549
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You can download or order publications at eon.com/brochures.
Cert no. IMO-COC-027827
This presentation may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.
Financial Calendar
August 11, 2010 Interim Report: January – June 2010 November 10, 2010 Interim Report: January – September 2010
March 9, 2011 Release of 2010 Annual Report May 5, 2011 2011 Annual Shareholders Meeting May 6, 2011 Dividend Payout May 11, 2011 Interim Report: January – March 2011 August 10, 2011 Interim Report: January – June 2011 November 9, 2011 Interim Report: January – September 2011
Financial Calendar
August 11, 2010 Interim Report: January – June 2010 November 10, 2010 Interim Report: January – September 2010
March 9, 2011 Release of 2010 Annual Report May 5, 2011 2011 Annual Shareholders Meeting May 6, 2011 Dividend Payout May 11, 2011 Interim Report: January – March 2011 August 10, 2011 Interim Report: January – June 2011 November 9, 2011 Interim Report: January – September 2011