Market Opportunities and Barriers

Vilnius 2009-09-16

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Alpiq

Who is Alpiq and what we do

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Alpiq: The Swiss Alps as roots

Alpiq bears witness to our history. Our roots lie in Switzerland, the cradle of the Alps, symbol of quality and excellence – two values to which we are committed.

The Alps are placed in the heart of Europe. They range from France to Slovenia. They link the west and the east of Europe. And form the bridge between north and south Europe.

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«Peak» for Peak Energy

PIQ reminds us of a «peak», the highest extremity of a mountain that permits a new outlook, also in terms of the peak performance that Alpiq will deliver in terms of energy.

The abbreviation IQ bears reference to the intelligent solutions in the field of energy.

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Presence in Europe

• Present in 29 European countries

• Cumulated turnover of CHF 16 billion

• Workforce of more than 10,000 (in Switzerland >5,000)

• Holding Headquarters: Neuchâtel

Electricity trading

Generation

Energy services

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Position in Europe

EON EDF RWE EnBW Vattenfall Alpiq A2A

113,000

98,000

69,000

24,00020,000

16,00012,000

Basis: Turnover 2007 in CHF million Source: Annual Report 2007

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Local subsidiaries in Central Eastern Europe

Atel Hellas S.A., Athen

Atel Energia Kft., Budapest

Atel Ceska republica s.r.o, Prag

Atel Hrvatska d.o.o., Zagreb

Atel Energija d.o.o, Ljubljana

Atel Polska Sp.z.o.o., Warsaw

Atel Serbia Ltd., Belgrad

Atel Austria GmbH, Wien

Atel Slovensko s.r.l., Bratislava

Atel Energy Romania s.r.l Bukarest

Atel Bulgaria Ltd, Sofia

Atel Skopje d.o.o., Skopje

Atel Lithuania UAB., Vilnius

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One of Leading CEE Wholesalers Top 3-5 position in each market Present before market opening Financially strong & creditworthy

Overall Presence to handle complexity

Physical scheduling in 15 markets 13 daughter companies Present at all auctioned borders

Bringing liquidity to market Active utilization of borders Leading SPOT trading activity

PLDE

AL

SR

IT

CG

GR

BG

RO

BH

HRSIHU

SKCZ

ATCH

NEE

SEE

Activity overview – Sales & Wholesale Central Eastern Europe

LT

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Market CEE Development of Energy Turnover 1998 – 2007

0

5000

10000

15000

20000

25000

30000

35000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

GWh

9‘000

6‘7685‘338

3'097

1‘143

9‘00611‘069

17‘100

19‘200

30‘600

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Established in 2008 In Vilnius License for trading At present- Atel Lietuva UAB Since 2 Nov 2009:

Alpiq Lietuva UAB

Alpiq in Lithuania

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Lithuanian Market Obstacles

Present situation for trading companies in Lithuania Low market transparency No unbandling Unclear market rules Export import permits

Implementation of „Electricity Market Expansion Plan” Rules published by September 30, two weeks from now;-is it still

realistic? However, Supported production; still about 50% of the supply out of market,

introduction of certificates? Low cross-border capacities (lack of diversification of supply)

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Opportunities

Opportunities, Trading Companies Bridge between „big markets” European, Scandinavian and

Eastern Adventage to be one of the first in the market

Opportunities, Lithuanian customers Optimalization of electricity prices (right prices) Tailor made supply products, more standarized „products”

14Company Presentation, 18.02.2009

Alpiq – Your Partner in the Baltic Energy Market