Business Environment: Opportunities and Obstacles

In Light of the International Investment Strategy of E.ON Energie Group

Dr. Ulrich StreiblApril 2004

Seite 2

E.ON Energie‘s current focus regions*

D

B

NL

L

CH

CZ

PL

SKA

H

RO

BL

E.ON Energie

BKW

E.ON Czech Holding

ZSE

E.ON Hungária

E.ON Polska

RAG-Beteiligungs-gesellschaft E.ON Bulgaria

In Europe:No. 2 in electricity and gas sales No. 2 in power generation

E.ON Benelux

E.ON Moldova

* Majority and Minority Shareholdings

Seite 3

E.ON Energie Key Corporate Data1

1 According to the 2004 financial statements2 Excluding trading business.

Sales (excl. electricity tax) € 19.7 billion

Employees 36,811

Electricity deliveries2 244 billion kWh

Power plant capacity 27,542 MW

Grid length (380/220/110 kV)55,000 km

Gas sales volume2 103 billion kWh

E.ON Energie AGMünchen

Seite 4

Power and gas investments in Europe 2001 to 2030

Quelle: IEA World Energy Investment Outlook 2003

A secure supply in Europe means tremendous investments.

˜˜˜˜˜

128 Mrd €16 Mrd €56 Mrd €76 Mrd €12 Mrd €

E&PLNGTransportDistributionStorage

˜˜˜˜

420 Mrd €540 Mrd €

96 Mrd €328 Mrd €

GenerationMaintenanceTransmissionDistribution

Gas:Power:

Seite 5

Vertically Integrated Electricity and Gas Business With International Orientation

Production/In-house Gas Production

Generation

TransmissionTrading

Distribution& Sales

ProcurementTransportStorageTrading

Distribution& Sales

Up-stream

Mid-stream

Down-stream

Electricity Gas

Regionalmarkets

Value-added chain

Electricity-gas convergence

Regional markets

Seite 6

„Opportunities and Obstacles“ in New Markets

Opportunities: High growth Strong will to modernize Chance to „do it right from

the start“ Examples and benchmarks

available Regional cooperation Electricity and gas

integration Support from international

institutions High interest from

experienced companies

Obstacles/Challenges: Legal and regulatory

frameworks in flux Politics and markets – not

always friends Compatible frameworks for

Inter-State cooperation

Seite 7

Outlook

E.ON Energie

Strong involvement in Central Eastern and South-eastern Europe Experience in transformation and privatisation processes Willingness to expand and grow

Central and South-eastern Europe, Black Sea Region

Progressing liberalisation and competition Cooperation between countries Integration of electricity and gas markets

Potential for value creating growth, enhancing security of supply, saving natural resource