E.on Strategy and Keyfigures 2009

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200

9

Strategy & Key Figures 2009

E.ON Russia PowerMoscow

E.ON ItaliaMilan

E.ON U.S.Louisville

E.ON UKCoventry

E.ON NordicMalm

E.ON EnergieMunich

E.ON Climate & RenewablesDsseldorf

E.ON Energy TradingDsseldorf

E.ON RuhrgasEssen

E.ON AGDsseldorf

E.ON EspaaMadrid

Content

E.ON Group

Strategy & Investment Plan

Key Figures

Central Europe Market Unit

Pan-European Gas Market Unit

U.K. Market Unit

Nordic Market Unit

U.S. Midwest Market Unit

New Market Units

New Markets: Russia, Italy, Spain

Climate & Renewables Market Unit

Energy Trading Market Unit

3

4

6

21

53

81

95

111

127

128

146

164

2E.ON Italia,

Milan

Italy MU

E.ON Nordic AB,

Malm

Nordic MU

E.ON Espaa,

Madrid

Spain MU

E.ON U.S. LLC,

Louisville

U.S. Midwest MU

E.ON Climate & Renewables GmbH,

Dsseldorf

Climate & Renewables MU

E.ON Energy Trading AG,

Dsseldorf

Energy Trading MU

E.ON Russia Power,

Moscow

Russia MU

E.ON UK plc,

Coventry

U.K. MU

E.ON Energie AG,

Munich

Central Europe MU

E.ON Ruhrgas AG,

Essen

Pan-European Gas MU

Corporate Center

E.ON AG

Dsseldorf

Group Structure

MU = market unit.

3E.ON Group

4 Strategy & Investment Plan 4 Strategic Direction

5 20092011 Investment Plan

5 Strict Strategic and Acquisition Criteria

6 Key Figures 6 Consolidated Balance Sheets

8 Consolidated Statements of Income

9 Sales and Adjusted EBIT

10 Return on Capital Employed (ROCE) and Value Added

10 ROCE and Value Added by Segment

11 Investments by Segment

12 Employees by Segment

13 E.ON Stock Information

14 Dividend Policy

14 Share Buyback Program

15 Shareholders Structure

15 ADR Program

16 Operating Cash Flow and Funds from Operations

17 Financial Strategy

18 Fiunding Policy and Access to Debt Capital Markets

19 Debt Profile

19 E.ON Bond Maturity Profile

20 E.ON Bonds

E.O

N G

roup

4 E.ON Group Strategy & Investment Plan

Strategic Direction

E.ON key beliefs about sustainable success in the energy industry

1. Presence along the entire value chainWere active along the entire value chain in power and gas,

with operations upstream (power generation and natural

gas production), midstream (energy imports and wholesale),

and downstream (end customer supply). This enables us to

operate efficiently and to capitalize on our comprehensive

market knowledge, in turn creating value across our businesses.

2. Power and gas convergencePower and gas markets are converging upstream (more gas-

fired generation), midstream (cross-commodity energy trad-

ing), and downstream (increasing popularity of dual-fuel

products). Our superb position in all three segments provides

us with synergy and growth potential.

3. Strong market positions In liberalized markets, scale and strong market positions give

us a key competitive edge and create a solid foundation for

ensuring security of supply.

4. GrowthIn the future, our markets in Northwestern Europe will grow

at moderate pace. Thats why were seizing opportunities for

above-average growth in Southern Europe and adjacent

regions like Russia.

5. Value from experienceOur extensive expertise in all facets of the energy business is

an invaluable competitive advantage, one that we leverage

fully by sharing best practices across our organization.

6. Market and competitionOpen, competitive markets are the best guarantee for energy

security and efficiency. An integrated European energy market

offers E.ON the best environment for expanding our market

positions and achieving organic growth in new regions.

For all our operations, we focus on selective investments and

acquisitions that meet our strict strategic and financial crite-

ria. We believe that you need a clear idea of where youre

going in order to get there.

In line with these beliefs, E.ON pursues a clear and focused business model

Focus on: Power and gas. Presence along the entire value chain up-, mid- and

downstream.

Geographic focus on Europe and the U.S.

E.ONs short- and mid-term focus

E.ON has completed a phase of significant external growth.

Consequently, the current priorities lie with performance,

portfolio streamlining and an investment plan strongly focused

on organic growth. Our group-wide performance project

Performto Win will deliver up to 1.5 billion EBIT by 2011. Port-

folio streamlining measures are expected to generate at

least 10 billion of divestment proceeds in 20092010. From

20092011, 30 billion investments are foreseen, of which

about two thirds are for growth, in particular generation,

renewables as well as gas upstream and supply.

Strategy & Investment Plan

520092011 Investment Plan

in billions

12.76.6

6.1

2007

26.2

12.9

4.4

8.9

2008

~13~2.5~10

2009

~9

2010

~8

2011

20

10

Priorities Set for 20092011 Investment Plan

OGK-4, renewables

Statkraft

11.5 for Viesgo & selected Endesa assets

~60 bn of investments for 20072010 Expansion in renewables, Italy, Spain, France and

Russia completed Portfolio optimization initiated with Statkraft

asset swap Growing organic investments

~30 bn investment for 20092011 Around 9 bn of organic investments per year Around 2.5 bn of asset swaps (not cash-effective)

20072010 investment ambitions fulfi lled20092011 investments of ~30 bn confi rmed

~60 bn for 20072010

~30 bn for 20092011

Strict Strategic and Acquisition Criteria

Strategic criteria

Market attractiveness (returns, growth, regulation, country risk).

Target attractiveness (asset quality, market position, management quality).

Value creation potential (cost reduction, integration benefits, transfer of best practice).

Acquisition criteria

Value enhancing over project lifetime. Earnings enhancing in the first full year after acquisition.1

E.ONs commitment

If individual assets do not contribute in line with financial

and strategic expectations, E.ON will take concrete portfolio

measures by 2010.

1Applicable to acquisitions of companies with relatively mature/stable business.

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6 E.ON Group Strategy & Investment Plan

Consolidated Balance Sheets

Key Figures

E.ON AG and Subsidiaries Consolidated Balance SheetsAssets

in millions

December 31

2008 2007

Goodwill 17,166 16,761

Intangible assets 6,749 4,284

Property, plant and equipment 56,526 48,552

Companies accounted for under the equity method 8,981 8,411

Other financial assets 8,823 21,478Equity investments 3,806 14,583Non-current securities 5,017 6,895

Financial receivables and other financial assets 2,451 2,449

Operating receivables and other operating assets 1,295 680

Income tax assets 1,988 2,034

Deferred tax assets 2,457 1,155

Non-current assets 106,436 105,804

Inventories 4,774 3,811

Financial receivables and other financial assets 2,101 1,515

Trade receivables and other operating assets 31,342 17,973

Income tax assets 1,515 539

Liquid funds 6,348 7,075Securities and fixed-term deposits 2,125 3,888Restricted cash and cash equivalents 552 300Cash and cash equivalents 3,671 2,887

Assets held for sale 4,529 577

Current assets 50,609 31,490

Total assets 157,045 137,294

7E.ON AG and Subsidiaries Consolidated Balance SheetsEquity and Liabilities

in millions

December 31

2008 2007

Capital stock 2,001 1,734

Additional paid-in capital 13,741 11,825

Retained earnings 22,164 26,828

Accumulated other comprehensive income 110 10,656

Treasury shares 3,549 616

Reclassification related to put options on treasury shares 1,053

Equity attributable to shareholders of E.ON AG 34,467 49,374

Minority interests (before reclassification) 4,538 6,281

Reclassification related to put options 578 525

Minority interests 3,960 5,756

Equity 38,427 55,130

Financial liabilities 25,036 15,915

Operating liabilities 6,063 5,432

Income taxes 2,602 2,537

Provisions for pensions and similar obligations 3,559 2,890

Miscellaneous provisions 19,198 18,037

Deferred tax liabilities 6,515 7,555

Non-current liabilities 62,973 52,402

Financial liabilities 16,022 5,549

Trade payables and other operating liabilities 32,060 18,254

Income taxes 2,153 1,354

Miscellaneous provisions 4,260 3,992

Liabilities associated with assets held for sale 1,150 613

Current liabilities 55,645 29,762

Total equity and liabilities 157,045 137,294

Key

Fig

ures

8 E.ON Group Key Figures

Consolidated Statements of Income

E.ON AG and Subsidiaries Consolidated Statements of Income

in millions 2008 2007

Sales including electricity and energy taxes 88,885 70,761

Electricity and energy taxes 2,132 2,030

Sales 86,753 68,731

Changes in inventories (finished goods and work in progress) 27 22

Own work capitalized 526 517

Other operating income 15,454 7,776

Cost of materials 66,419 50,223

Personnel costs 5,130 4,597

Depreciation, amortization and impairment charges 6,890 3,194

Other operating expenses 20,337 9,724

Income/Loss () from companies accounted for under the equity method 962 1,147

Income/Loss () from continuing operations before financial results and income taxes 4,946 10,455

Financial results 2,351 772Income from equity investments 458 179Income from other securities, interest and similar income 1,159 1,035Interest and similar expenses 3,052 1,986

Income taxes 863 2,289

Income/Loss () from continuing operations 1,732 7,394

Income/Loss () from discontinued operations, net 128 330

Net income 1,604 7,724Attributable to shareholders of E.ON AG 1,266 7,204

Attributable to minority interests 338 520

Adjusted net income 5,598 5,115

9Sales and Adjusted EBIT

Central Europe

Pan-European Gas

U.K.

Nordic

U.S. Midwest

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

670

4,720

770

4,670

239295Corporate Center

790

645Energy Trading

New Markets

388395

1,136922

2,5762,631

in millions 2007 (total: 9,208) 2008 (total: 9,878)

Adjusted EBIT

Central Europe

Pan-European Gas

U.K.

Nordic

U.S. Midwest

Energy Trading

New Markets

New MarketsCorporate Center

30,000 20,000 10,000 0 10,000 20,000 30,000 40,000

22,745

1,819

252

4,037

41,135

27,422

1,880

31,760

5,862

36,234

32,029

12,58411,051

3,3393,877

in millions 2007 (total: 68,731) 2008 (total: 86,753)

Sales

Key

Fig

ures


ROCE and Value Added by Segment

Return on Capital Employed (ROCE) and Value Added

E.ON Group ROCE and Value Added

in millions 2008 2007

Adjusted EBIT 9,878 9,208

Goodwill, intangible assets, and property, plant, and equipment 80,441 69,597

+ Shares in affiliated and associated companies and other share investments 12,787 22,994

+ Inventories 4,774 3,811

+ Accounts receivable 13,599 9,064

+ Other non-interest-bearing current assets, including deferred income and deferred tax assets 29,527 13,317

Non-interest-bearing provisions 7,784 9,807

Non-interest-bearing liabilities, including deferred expenses and deferred tax liabilities 50,543 31,349

Adjustments 1,664 9,692

Capital employed in continuing operations (at year-end) 81,137 67,935

Capital employed in continuing operations (annual average) 76,363 63,287

ROCE 12.9% 14.5%

Cost of capital 9.1% 9.1%

Value added 2,902 3,417

1Non-interest-bearing provisions mainly include current provisions, such as those relating to sales and procurement market obligations. They do not include provisions for pensions or for nuclear-waste management.

2Capital employed is adjusted to exclude the mark-to-market valuation of other share investments (including related deferred tax effects) and operating liabilities for certain purchase obligations to minority shareholdings pursuant to IAS 32. The adjustment to exclude the mark-to-market valuation of other share investments applies primarily to our shares in Gazprom.

3In order to better depict intraperiod fluctuations in capital employed, annual average capital employed is calculated as the arithmetic average of the amounts at the begin-ning of the year, the end of the year, and the balance-sheet dates of the three interim reports. Capital employed in continuing operations amounted to 68,046 million, 80,949 million, and 83,746 million at March 31, June 30, and September 30, 2008, respectively.

ROCE and Value Added by Segment

in millions

Central Europe Pan-European Gas1 U.K. Nordic

2008 2007 2008 2007 2008 2007 2008 2007

Adjusted EBIT 4,720 4,670 2,631 2,576 922 1,136 770 670

Capital employed 19,310 18,943 17,594 17,130 10,101 12,368 6,948 6,886

= ROCE 24.4% 24.7% 15.0% 15.0% 9.1% 9.2% 11.1% 9.7%

Cost of capital 9.2% 9.3% 8.8% 8.8% 9.8% 9.5% 9.3% 8.8%

Value added 2,935 2,917 1,091 1,062 71 37 125 62

1Capital employed is adjusted to exclude the mark-to-market valuation of other share investments. This applies primarily to our shares in Gazprom.

11

ROCE and Value Added by Segment (continued)

in millions

U.S. Midwest Energy Trading New Markets Corporate Center E.ON Group

2008 2007 2008 2007 2008 2007 2008 20072 2008 2007

Adjusted EBIT 395 388 645 90 295 232 9,878 9,208

Capital employed 6,537 6,780 868 15,596 591 1,180 76,363 63,287

= ROCE 6.0% 5.7% 74.3% 0.6% 12.9% 14.5%

Cost of capital 8.7% 7.8% 9.2% 10.4% 9.1% 9.1%

Value added 176 142 565 1,528 2,902 3,417

2For 2007, the Corporate Center segment also includes the New Markets segment.

Investments by Segment

Central Europe

Pan-European Gas

U.K.

Nordic

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

U.S. Midwest

New Markets

2007 (total: 11,306, thereof outside Germany: 9,058) in millions 2008 (total: 18,406, thereof outside Germany: 15,415)

New Markets

Energy Trading

Corporate Center

8

3,126 7,939

2,424

1,364

914

3,188

1,215

1,162

939

690650

2073,305

2,581

Cash-Effective Investments

Key

Fig

ures


Employees by Segment

2007 (total: 87,815) 2008 (total: 93,538)

16,786

5,826

3,110

44,142

17,480

5,804

2,977

885

44,051Central Europe

Pan-European Gas

U.K.

Nordic

U.S. Midwest

Energy Trading

5,4249,214New Markets

9,82712,214

New MarketsCorporate Center2

474474

Discontinuedoperations3

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,0001Figures do not include apprentices, managing directors, and board members.2Includes E.ON IS in 2008.3Contains WKE.

5593,054

Employees1

13

Type of shares Ordinary shares with no par value/Registered shares

Stock codes Germany USA1

WKN ENAG99 Cusip No. 268 780 103 ISIN DE000ENAG999

Stock symbols Reuters Bloomberg FSE EONGn.F FSE EOAN GF Xetra EONGn.DE Xetra EOAN GY ADR2 EONGY.PK ADR EONGY US

E.ON Stock Information

1 In the United States, E.ON shares trade in the over-the-counter market (OTC market) via ADR.

2OTC code.

E.ON Stock Key Figures1

per share 2004 2005 2006 2007 2008

Earnings attributable to the shareholders of E.ON AG 2.20 3.75 2.82 3.69 0.68

Earnings from adjusted net income 1.84 2.22 2.82 3.01

Dividend 0.78 0.92 1.12 1.37 1.50

Dividend payout ( in millions) 1,549 4,6142 2,210 2,560 2,857

Twelve-month high 22.35 29.64 34.80 48.69 50.93

Twelve-month low 16.42 21.50 27.37 32.02 23.50

Year-end closing price 22.35 29.13 34.28 48.53 28.44

Number of shares outstanding (in millions) 1,977 1,977 1,979 1,895 1,905

Market capitalization3 ( in billions) 44.2 57.6 67.6 92.0 54.2

Book value4 16.97 22.50 24.62 26.06 18.10

Market-to-book ratio5 (percentage) 132 129 139 186 157

E.ON stock trading volume6 ( in billions) 46.1 62.5 92.5 136.2 119.2

Trading volume of all German stocks ( in billions) 877.7 1,095.8 1,539.3 2,350.9 2,029.6E.ON stocks share of German trading volume (percentage) 5.3 5.7 6.0 5.8 5.9

1Adjusted for discontinued operations; figures prior to 2006 calculated according to U.S. GAAP.2Includes special dividend of 1.42 per share.3Based on ordinary shares outstanding.4Shares attributable to the shareholders of E.ON AG.5Year-end stock price expressed as a percentage of book value per share (excluding minority interests).6On all German stock exchanges, including Xetra.

per share

22.35 29.13 34.28 48.53 28.44

2004 2005 2006 2007 2008

40

30

20

10

Stock Price at Year-End

Weighting of E.ON Stock in Major Indices

As of December 30, 2008 %

DAX 10.38

Dow Jones EURO STOXX 50 4.14

Dow Jones STOXX Utilities 17.58

Key

Fig

ures

14

Dividend Policy

Commitment to payout ratio between 50 percent and 60 percent of adjusted net income

Ordinary dividend increased by 9.5 percent to 1.50 per share for 2008.

Since 2003 the dividend has increased by 17.5 percent per year on average.

Payout ratio 2008: 51 percent.

Share Buyback Program

In June 2007, E.ON began a 7 billion share buyback program

with the aim of making E.ONs capital structure more efficient.

E.ON repurchased about 3.5 billion worth of E.ON shares

in 2007 and another 3 billion between January 1 and Decem-

ber 3, 2008. Due to the ongoing financial crisis, E.ON decided

to suspend the share buyback to maintain the highest degree

of flexibility.

5149

Ordinary dividend Special dividend Payout ratio (%)

2.00

1.00

2003 2004 2005 2006 2007 2008

0.67 0.78 0.92 + 1.42 1.12 1.37 1.50

per share

Strong Increase of Dividends

47 4751

CAGR 17.5%

E.ON Group Key Figures

15

Shareholders Structure

A current survey identified 93.3 percent of the free float.

According to the survey, institutional investors of 40 countries

hold 81.8 percent; retail shareholders hold 11.5 percent.

ADR Program

E.ON shares trade in the United States in the over-the-counter

market (OTC market) via ADR. The OTC code is EONGY.

E.ONs ADR program gives U.S. investors the opportunity to buy

E.ON shares and hold share certificates that are essentially

like American shares. ADR are quoted in dollars, a significant

advantage for U.S. investors. Dividends are also paid in dollars.

ADR holders have the same rights and obligations as ordinary

shareowners. They can attend and vote at Shareholders

Meetings, participate in profits, and receive information.

The price of one E.ON ADR matches that of one E.ON share.

Detailed information on E.ONs ADR program is available

from JPMorgan at www.adr.com.

Germany: 26.6% Outside Germany: 66.7%

Shareholders Structure1

26.5% USA & Canada2

14.9% U.K.2

5.8% France2

2.0% Switzerland2

6.7%

0.2%

11.3%

15.3%

4.4%

12.9%

1Based on free float of 1,904,530,366 shares.2Thomson Reuters (as of March 31, 2009).3Share register (as of May 31, 2009).

Not identified

Retail investorsoutside Germany3

Retail investorsGermany3

Germany3

Rest of World2

Rest of Europe2

Key

Fig

ures


Operating Cash Flow and Funds from Operations

Strong operating cash flow generation

The core energy business generates a strong and stable cash flow.

Cash provided by operating activities was 23 percent lower in 2008 than in 2007. The decrease was due to the

accumulation of emission rights positions at the Groups

trading operations, and to negative effects from the gas

storage usage at the Pan-European Gas market unit,

amongst other things.

E.ON Operating Cash Flow and Funds from Operations 2008

in millions 2008

Net income 1,604

Income from discontinued operations, net 128

Depreciation, amortization and impairment of intangible assets and of property, plant and equipment 6,890

Changes in provisions 635

Changes in deferred taxes 1,056

Other non-cash income and expenses 229

Gain/Loss on disposal of 1,407Intangible assets and property, plant and equipment 362Equity investments 877Securities (>3 months) 168

Changes in operating assets and liabilities and in income taxes 285Inventories 1,454Trade receivables 4,616Other operating receivables and income tax assets 10,172Trade payables 515Other operating liabilities and income taxes 15,442

Cash provided by operating activities of continuing operations (operating cash flow) 6,738

Changes in operating assets and liabilities and in income taxes 285

thereof changes in mark-to-market valuation of commodity derivatives (used to protect operating business, included mainly in other operating liabilities and income taxes) 2,176

Funds from Operations (FFO) 9,199

17

Financial Strategy

We actively manage E.ONs capital structure. We use debt factor to continually monitorand if necessary, adjust

our capital structure. If our debt factor is significantly

above 3, strict investment discipline will be called for.

In the case of strategically important investments, we

would have to utilize alternative funding concepts in the

form of portfolio measures or capital increases. If it

becomes apparent that our debt factor will fall and remain

significantly below 3, we will return more capital to our

shareholders, for example through higher dividend pay-

ments or share buybacks. But we will always give priority

to value-enhancing investments.

Our target dividend payout ratio remains at between 50 and 60 percent of adjusted net income.

The E.ON Groups financial strategy has four key elements:

E.ONs target rating is single A flat/A2. This target rating allows for an efficient capital structure while ensuring our

access to financing.

To manage our capital structure we use a steering metric called debt factor. Debt factor is our economic net debt

divided by adjusted EBITDA. Economic net debt includes

not only our financial liabilities but also our provisions

for pensions and asset retirement obligations. We have

defined 3 as our target debt factor, which is derived from

our target rating.

Economic Net Debt

in millions

December 31

2008 2007

Liquid funds 6,348 7,075

Non-current securities 5,017 6,895

Total liquid funds and non-current securities 11,365 13,970

Financial liabilities to banks and third parties 39,095 19,357

Financial liabilities to Group companies 1,963 2,107

Total financial liabilities 41,058 21,464

Net financial position 29,693 7,494

Fair value (net) of currency derivatives used for financing transactions1 1,988 706

Provisions for pensions 3,559 2,890

Asset retirement obligations 14,839 15,034

Less prepayments to Swedish nuclear funds 1,157 1,280

Economic net debt 44,946 23,432

Adjusted EBITDA 13,385 12,450

Debt factor 3.4 1.9

Pro forma debt factor 3.2 1.9

1Does not include transactions relating to our operating business or asset management.

Key

Fig

ures


Funding Policy and Access to Debt Capital Markets

Funding policy

Our funding policy is designed to give E.ON access to a variety of funding resources at any time.

Generally, external funding is carried out by E.ON AG or via our Dutch finance subsidiary E.ON International

Finance B.V. under guarantee of E.ON AG, and the funds

are on-lent as needed within the Group.

The funding policy is based on the following principles: Using a variety of markets and debt instruments to

maximize the diversity of our investor base.

Issuing bonds with terms that give our debt portfolio a broadly balanced maturity profile.

Combining large-volume benchmark issues with smaller issues, promissory notes (Schuldscheindarle-

hen) or private placements that take advantage of

market opportunities as they arise.

Ready access to banks and debt capital markets

Committed syndicated credit line 7.5 billion, 364 days tranche, for general corporate

purposes (as of year-end 2008: no amounts outstanding).

5.0 billion, 5 years tranche (maturing in 2011), for general corporate purposes (as of year-end 2008: no

amounts outstanding).

Existing capital market programs 10 billion commercial paper program and US$10 billion

commercial paper program (as of year-end 2008:

7.3 billion equivalent outstanding under both programs).

30 billion debt issuance program (as of year-end 2008: 23.1 billion outstanding).

In the first quarter of 2009 E.ON issued 6.1 billion in new bonds denominated in euros, sterling, and Swiss francs.

19

Debt Profile

in millions As of May 31, 2009

Maturity Profile of Outstanding Bonds of E.ON International Finance B.V. and E.ON AG

4,000

3,000

2,000

1,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+

Financial Liabilities to Banks and Third Parties

As of December 31, 2008 in billions

E.ON AG &E.ON International Finance B.V. Market units & other E.ON Group

Bonds 24.0 1.3 25.3

Commercial paper 7.3 7.3

Bank loans/others 2.8 3.7 6.5

Total 34.1 5.0 39.1

E.ON Bond Maturity Profile

The graph below shows the maturity profile of all bonds of

E.ON International Finance B.V. and E.ON AG.

Key

Fig

ures


E.ON Bonds

Issuer: E.ON International Finance B.V.1

CurrencyVolume in original currency (millions) Term in years Maturity Coupon (%)

EUR 1,000 2 25.11.2010 4.750

CHF 200 3 17.12.2010 3.000

CHF 500 2 25.02.2011 2.000

EUR 750 3 08.09.2011 5.000

EUR 750 2.5 30.11.2011 2,500

GBP 500 10 29.05.2012 6.375

CHF 2502 4 24.09.2012 3.250

EUR 1,750 5 02.10.2012 5.125

CHF 250 4 11.12.2012 3.875

EUR 750 4 26.03.2013 4.125

EUR 1,500 5 07.05.2013 5.125

CHF 300 5 07.05.2013 3.625

GBP 350 5 27.01.2014 5.125

EUR 1,750 5 28.01.2014 4.875

CHF 5253 5 11.02.2014 3.375

EUR 1,000 6 06.06.2014 5.250

CHF 225 7 17.12.2014 3.250

EUR 1,250 7 08.09.2015 5.250

EUR 1,500 7 19.01.2016 5.500

EUR 900 15 29.05.2017 6.375

EUR 2,3754 10 02.10.2017 5.500

USD 2,000 10 30.04.2018 5.800

GBP 600 12 30.10.2019 6.000

GBP 250 ~10.5 30.10.2019 6.000

EUR 1,4005 12 07.05.2020 5.750

GBP 9756 30 07.06.2032 6.375

GBP 900 30 30.10.2037 5.875

USD 1,000 30 30.04.2038 6.650

GBP 700 30 27.01.2039 6.750

1Listing: All bonds are listed in Luxembourg, except for CHF bonds which are listed at the SWX Swiss Exchange.2The bond was increased from an initial CHF200 million to CHF250 million.3The bond was increased from an initial CHF400 million to CHF525 million.4The bond was increased in two steps from an initial EUR1,750 million to EUR2,375 million.5The bond was increased from an initial EUR1,000 million to EUR1,400 million.6The bond was increased from an initial GBP850 million to GBP975 million.

The following table gives an overview of all bonds issued or

guaranteed by E.ON AG. Typically E.ON International Finance

B.V. issues bonds, guaranteed by E.ON AG.

In addition, E.ON AG and E.ON International Finance B.V.

have issued private placements with a total volume of

approximately 2.3 billion as well as promissory notes

(Schuldscheindarlehen) with a total volume of nearly

1.4 billion. Furthermore, E.ON AG issues commercial paper

on a regular basis.

E.ON Group

21

Central EuropeMarket Unit

22 Introduction

23 Market Overview Germany

24 Business Activities

25 2008 Sales

26 Power and Gas Activities in Europe

27 Business Activities along the Value Chain

27 2008 Power Procurement and Sales Volume

28 Location of Major Generation Assets

29 Generation Capacity by Sources

30 Generation Output by Sources

31 Generation Assets

35 Provisions for Nuclear Power

36 Transmission System of E.ON Netz

37 German Power Imports and Exports

38 Integration of Wind Energy into the Grid

39 Distribution System in the German Power Market

40 Distribution System in the German Gas Market

41 Activities in the German Sales Market Power

42 Activities in the German Sales MarketGas

43 Activities in the Netherlands

44 Activities in France

45 Activities in Switzerland

46 Central Europe EastActivities in the Power Market

48 Central Europe EastActivities in the Gas Market

49 Power Customers in Europe

50 Composition of Power Prices in Germany

51 Composition of Power Prices

52 Key Figures

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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 41.1 billion,

33.3 billion of which was generated from German customers,

and an adjusted EBIT of 4.7 billion in 2008. E.ON Energies core

business consists of the ownership and operation of power

generation facilities, the transmission and distribution grid and

the sale of electricity and, to a lesser extent, gas and heat, in

Germany and Continental Europe. It is one of the four interre-

gional electric utilities in Germany that are interconnected in

the western European power grid.

E.ON Energie is embarking on a significant program to build

new generating capacity in many of the countries in which it

operates:

In 2008, construction of the 800 MW natural gas plant at Livorno Ferraris, Italy, was completed. The power plant

has started commercial operations and has been trans-

ferred to the new Italy market unit.

Construction is underway on new facilities at Irsching, Germany (a 530 MW advanced natural gas plant to be

built in cooperation with Siemens AG, scheduled to

begin operations in 2011, and a new 800 MW combined-

cycle gas-fired plant, which is scheduled to begin opera-

tions in 2011), Datteln, Germany (a 1,100 MW hard coal

plant, scheduled to begin commercial operation in 2011)

and Maasvlakte, Netherlands (a 1,100 MW hard coal

plant, scheduled to begin operations in 2012).

Construction was also started on two 400 MW gas-fired combined-cycle power plants in Gny, Hungary, and

Malzenice, Slovakia, that are expected to start commer-

cial operation at the end of 2011 and beginning of 2010,

respectively.

Furthermore construction is underway on two new 400 MW gas-fired combined-cycle units on the power plant site

Emile Huchet, France, scheduled to begin commercial

operation in 2010.

In addition, E.ON Energie plans to build new plants at the location of Staudinger, Germany (a 1,100 MW hard

coal plant) and in the harbor port of Antwerp, Belgium

(a 1,100 MW hard coal plant), if all requirements are met.

E.ON Energie also plans to build the worlds first large

coal-fired power plant with a target efficiency of more

than 50 percent and a capacity of about 550 MW in Wil-

helmshaven, Germany.

23

Market Overview Germany

Customers

Local utilities Local utilities Local utilities >800

Number of companies

Major utilities 4

Large municipal utilities 24

Regional and national distributors 70

Source: BDEW 2006.

Central EuropeElectricity Market

Billion kWhPower supplied

as of Dec. 31, 2008

Germany 304

France 9

Benelux 25

Czech Republic 13

Slovakia 8

Hungary 16

Romania 4

Bulgaria 5

Central EuropeGas Market

Billion kWhGas supplied

as of Dec. 31, 2008

Germany 101

France 10

Benelux 3

Czech Republic 4

Hungary 12

Source: E.ON.

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Business Activities1

1As of December 31, 2008.2Six of the seven regional utility companies (excluding E.ON Thringer Energie AG) own stakes of 10 percent each. 40 percent are directly held by E.ON Energie AG.

3The remaining 47.6 percent is held by E.ON Ruhrgas AG.4Managed by E.ON Energie; total share: 90.2 percent (69.8 percent held by E.ON Ruhrgas International AG).

5The remaining 43.0 percent interest is held by E.ON Ruhrgas AG.

E.ON Energie AG 100% Leading entity for the management and coordination of the market units activities Centralized strategic, controlling and service functions

E.ON AG

Central Europe West Non-regulated

Conventional Power PlantsE.ON Kraftwerke GmbH (100%) Power generation by conventional power plants District heating Industrial power plants

E.ON Benelux Holding B.V. (100%) Power generation by conventional power plants in the

Netherlands District heating in the Netherlands Sales of power and gas in the Netherlands

Socit Nationale dElectricit et de Thermique S.A. (SNET) (65%) Power generation by conventional power plants in France Sales of power in France

Nuclear Power PlantsE.ON Kernkraft GmbH (100%) Power generation by nuclear power plants

Hydroelectric Power PlantsE.ON Wasserkraft GmbH (100%) Power generation by hydroelectric power plants

Waste IncinerationE.ON Energy from Waste AG, formerly BKB AG, renamed in 2008 (100%) Energy generation from waste incineration

Sales of Electricity, Gas and HeatE.ON Vertrieb Deutschland GmbH2

Providing sales service and management activities for E.ON Energy Sales GmbH and six regional sales companies

Sales service and management for E WIE EINFACH Strom & Gas GmbH

E.ON Energy Sales GmbH (100%) Supply of electricity and energy services to large industrial

customers, as well as to regional and municipal distributors Centralized wholesale functions

Six regional sales companies and one regional utility company (E.ON Thringer Energie AG) across Germany (shareholding percentages range from 53% to 100%) Sales of electricity, gas, heat and water to retail customers Energy Support Services

E WIE EINFACH Strom & Gas GmbH (100%) Sales of electricity and gas to residential customers and small

and medium enterprises across Germany

Ruhr Energie GmbH (100%) Customer service and electricity and heat supply to utilities and

industrial customers in the Ruhr region

E.ON France S.A.S. (52.4%)3

Sales of electricity and gas in France via subsidiary E.ON Energie S.A.S.

Central Europe West Regulated

TransmissionE.ON Netz GmbH (100%) Operation of high-voltage grids (380 kilovolt110 kilovolt) System operation, including provision of regulating and balanc-

ing power

Distribution of Electricity and Gas Six regional utility companies and one regional grid company (TEN Thringer Energienetze GmbH) across Germany (shareholding percentages range from 53% to 100%) Distribution of electricity and gas to retail customers

Central Europe East

E.ON Hungria Energetikai ZRt. (100%) Generation, distribution and sales of electricity and gas in

Hungary through its group companies

E.ON Czech Holding AG (100%) Generation, distribution and sales of electricity and gas in the

Czech Republic through its group companies

E.ON Romnia S.R.L. (20.4%)4

Distribution and sales of electricity and gas in Romania through its group companies

E.ON Bulgaria EAD (100%) Distribution and sales of electricity in Bulgaria through its group

companies

E.ON Slovensko a.s. (100%) Generation, distribution and sales of electricity in Slovakia

through its group companies (which are valued under the equity method, given E.ON Slovenskos minority interest in those companies)

Other/Services

E.ON Engineering GmbH (57%)5

Provision of consulting and planning services in the energy sector to companies within the Group and third parties

Marketing of expertise in the area of conventional and renewable power generation and cogeneration, as well as a pipeline business

E.ON Facility Management GmbH (100%) Infrastructure services

25

2008 Sales

Significant Market Positions

One of Europes leading utility companies. A leading power supplier in Germany. Substantial position in Germanys gas distribution

market.

Strong position as international power supplier, active particularly in the Netherlands, France, Hungary, Czech

Republic, Bulgaria, Romania and Slovakia.

in billions Total: 41,135

Central EuropeSales by Business Area

Other/Consolidation

Central Europe East

Central Europe West Regulated

Central Europe West Non-Regulated

-2 0 2 4 6 8 10 12 14 16 18 20 22 24 26

4.999

12.103

26.537

2.504

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Power and Gas Activities in Europe

Key Figures Overall Market Power1

As of December 31, 2008Central Europeshareholdings Overall market2

Power supplied 376 billion kWh 791 billion kWh

Customers 19.0 million 76 million

Transmission system length (110 kV) 54,000 km 185,000 km

Attributable generation capacity 28,749 MW 179,000 MW

Generation output 138 billion kWh 600 billion kWh3

1Region Bulgaria, Czech Republic, Germany, Hungary, Netherlands, Romania, France. 2Some data for eastern Europe is only available for former years (without France).3Overall figures only Germany and Netherlands.

Key Figures Overall Market Gas

As of December 31, 2008Central Europe shareholdings Overall market1

Gas supplied 130 billion kWh 1,602 billion kWh

Customers 3 million 32 million

1Source eurogas (Czech Republic, Germany, Hungary, Netherlands).

Nether-lands

GermanyBelgium

CzechRepublic

Slovakia

Hungary

Romania

Bulgaria

France Switzerland

27

Business Activities along the Value Chain

2008 Power Procurement and Sales Volume1

Upstream Midstream Downstream

Generation Transmission Distribution Retail

non-regulated regulated

PowerGas

1Excluding trading operations, which are recognized net under IFRS.24.5 billion of this is derived from jointly operated power stations.

Own generation

138.3 billion kWh

Other suppliers2

251.4 billion kWh

Power procured

389.7 billion kWh

Power supplied

376.2 billion kWh

Procurement Sales volume

Sales partners

101.7 billion kWh

Wholesale market/

Energy Trading

145.7 billion kWh

Industrial and

commercial customers

82.0 billion kWh

Residential and

SME customers

46.8 billion kWh

Transmission losses,

pumped storage

13.5 billion kWhC

entr

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Location of Major Generation Assets

As of December 31, 2008.

Nuclear power station

Hard-coal-fired power station

Lignite-fired power station

Oil-fired power station

Gas-fired power station

Waste incineration

Hydroelectric power station

Nether-lands

Germany

Hungary

France

29

Generation Capacity by Sources

Attributable Power Generation Capacity1

MW 2008 2007 2006

Nuclear 8,548 8,548 8,473

Hard coal 10,180 8,565 8,546

Lignite 1,314 1,314 1,315

Natural gas 4,356 5,258 5,118

Oil 1,145 1,145 1,153

Hydro 2,811 3,153 3,113

Others 395 216 214

Central Europe 28,749 28,479 28,172

Nuclear 8,548 8,548 8,473

Hard coal 7,475 7,466 7,461

Lignite 1,314 1,314 1,315

Natural gas 3,269 4,219 4,121

Oil 1,145 1,145 1,153

Hydro 2,811 3,153 3,113

Others 289 406 367

Germany 24,851 26,251 26,003

Hard coal 1,066 1,066 1,052

Natural gas 830 808 810

Other renewables 6 6 6

E.ON Benelux 1,902 1,880 1,868

Oil/gas 230 95 95

Other 2 138 92

E.ON Hungary 232 233 187

Hard coal 1,531

E.ON France 1,531

Other plants 233 115 114

1As of December 31, 2008.

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Generation Output by Sources

Power Generation Output1

GWh 2008 2007 2006

Nuclear 62,062 62,214 62,766

Hard coal 45,388 42,461 39,839

Lignite 8,972 8,675 8,630

Oil/gas 9,503 9,293 8,411

Waste incineration 1,856 1,324 1,110

Hydro 7,777 7,281 7,292

Other renewables 1,256 1,775 1,599

Combined heat and power 1,458 1,466 1,629

Others 32 42 29

Central Europe 138,304 134,531 131,304

Nuclear 62,062 62,213 62,766

Hard coal 33,908 35,921 33,309

Lignite 8,717 8,435 8,563

Oil/gas 5,275 5,568 4,580

Waste incineration 1,856 1,324 1,110

Hydro 7,725 7,232 7,225

Other renewables 1,256 1,775 1,599

Combined heat and power 1,458 1,466 1,629

Others 2 43 29

Germany 122,259 123,977 120,808

Hard coal 7,211 6,540 6,531

Oil/gas 3,265 2,774 3,182

E.ON Benelux 10,476 9,314 9,713

Oil/gas 963 951 649

E.ON Hungary 963 951 649

Hard coal 4,269

Others 30

E.ON France 4,299

Lignite 255 240 67

Hydro 52 49 68

E.ON Czech 307 289 135


31

Generation Assets

Lignite-fired Power Stations

As of December 31, 2008 Shareholders Consolidation Net MW

Central Europe share

Start-up date% MW

Buschhaus E.ON 2 352 100.0 352 1985

Lippendorf S E.ON/EnBW 1 891 50.0 446 1999

Schkopau E.ON/Saale Energie 1 900 55.6 500 1995

Others (


Generation Assets

Hard-Coal-fired Power Stations



Start-up date% MW

Bexbach 1 E.ON/Stw. Aachen 1 714 8.3 59 1983

Datteln 3 E.ON 2 113 100.0 113 1969

Farge E.ON 2 350 100.0 350 1969

GKW Weser/Veltheim 3 E.ON/Stw. Bielefeld 2 303 67.0 203 1970

Heyden E.ON 2 875 100.0 875 1987

Kiel E.ON/Stw. Kiel 2 323 50.0 162 1970

Knepper C E.ON 2 345 100.0 345 1971

Mehrum CE.ON/Stw. Hanover, Braunschw. Vers. AG 3 690 50.0 345 1979

Rostock E.ON/RWE/VE 4 508 50.4 256 1994

Scholven B E.ON 2 345 100.0 345 1968

Scholven C E.ON 2 345 100.0 345 1969

Scholven D E.ON 2 345 100.0 345 1970

Scholven E E.ON 2 345 100.0 345 1971

Scholven F E.ON 2 676 100.0 676 1979

Shamrock E.ON 2 132 100.0 132 1957

Staudinger 1 E.ON 2 249 100.0 249 1965

Staudinger 3 E.ON 2 293 100.0 293 1970

Staudinger 5 E.ON 2 510 100.0 510 1992

Wilhelmshaven E.ON 2 757 100.0 757 1976

Zolling E.ON 2 449 100.0 449 1986

Others (

33

Others (Waste, Wind, Biomass et al.)

As of December 31, 2008Total capacity

net MW MW

Waste 338 243

Wind, biomass et al. 90 54

Total 428 297

Hydroelectric Power Stations



Start-up date% MW

Braunau-Simbach E.ON/Verbund 3 100 50.0 50 1953

Happurg E.ON 2 160 100.0 160 1958

Jochenstein E.ON/Verbund 3 132 50.0 66 1955

Langenprozelten E.ON 2 164 100.0 164 1976

Walchensee E.ON 2 124 100.0 124 1924

Waldeck 1 E.ON 2 135 100.0 135 1931

Waldeck 2 E.ON 2 460 100.0 460 1974

Others (


Generation Assets

Transferred to Statkraft by December 31, 2008

As of December 31, 2008

Central Europe

Start-up dateNet MW % MW

Emden 4 (gas-fired) 433 100 433 1972

Robert Frank 4 (gas-fired) 491 100 491 1973

Erzhausen (hydroelectric) 220 100 220 1964

Hydroelectric power plant

35

Provisions for Nuclear Power

Provisions for Nuclear Power

in billions 2008 2007

Non-contractual nuclear waste management obligations 9.16 9.71

Thereof advance payments made to reprocessors and to other waste management companies 0.79 0.78

Total 8.37 8.93

Contractual nuclear waste management obligations 3.74 3.44

Thereof advance payments made to reprocessors and to other waste management companies 0.05 0.12

Total 3.69 3.32

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Transmission System of E.ON Netz1

Europe

Total grid length: 43,000 km E.ON Energie Group in Germany

(including 110 kV lines of regional utilities).

Key Figures E.ON Netz 2008

Customers 244 grid customers1

Customers 290 traders

Area 140,000 km2

1E.g. regional or local energy distributors, major industry, power plants.

Power Transmission System Length 2008

Kilometers 380 kV 220 kV 110 kV1

E.ON Netz GmbH 5,747 4,921 21,950

Germany 18,600 17,400 75,200

1The 110 kV is not depicted in the graphic.


VattenfallEuropeTransmission(VET)

RWETransportnetzStrom

RWETransportnetzStrom

EnBWTransportnetze

Company HeadquartersOperating center (BZ)Main control centerSubstation

Nether lands

Denmark

Sweden

Lehrte

Bamberg

Bayreuth Czech Republic

Austria

Austria

Dachau

37

German Power Imports and Exports

Europe

Source: BDEW, preliminary figures as of 2008.

Denmark

Total import: 40.2 billion kWh

Total export: 62.7 billion kWh

Sweden

Poland

Czech Republic

Austria

Switzerland

France

Luxembourg

Netherlands

ImportExport

1.4 billion kWh

0.5 billion kWh

0.1 billion kWh

7.9 billion kWh

5.6 billion kWh

15.0 billion kWh

13.9 billion kWh

0.9 billion kWh

0.8 billion kWh

0.8 billion kWh

18.9 billion kWh

5.3 billion kWh

10.6 billion kWh

2.7 billion kWh

1.3 billion kWh

5.6 billion kWh

2.5 billion kWh

9.2 billion kWh

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Integration of Wind Energy into the Grid

Wind Power in Figures

2008 2007

Installed capacity of wind power in Germany as of December 31 26,620 MW 20,432 MWThereof in E.ON control zone 8,230 MW 8,112 MW

Average wind power fed into E.ON control zone n.a. 1,483 MW

Wind energy generation in Germany 40.2 billion kWh 30 billion kWhThereof in E.ON control zone 37.7 billion kWh 13 billion kWh

Compensation to be paid for electricity generated from wind energy under the Renewable Energies Act (Germany) n.a. approx. 2,660 million

Thereof to be borne by customers in the E.ON control zone n.a. approx. 1,150 million

Source: Windreport E.ON Netz, BDEW.

Total installed capacity of wind power in Germany E.ON control zone Other control zone

Wind Power Boom in Germany

1995 2000 2002 2004 2005 2006 2010 2015 2020

1,100 6,100 11,900 16,394 18,286 20,432 30,000 36,000 48,000MW

40,000

30,000

20,000

10,000

Source: ISET, ENE, dena.

39

Europe

Distribution System in the German Power Market

Central EuropeMajor Shareholdings


E.ON Hanse AG 73.8

E.ON Westfalen Weser AG 62.8

E.ON Mitte AG 73.3

E.ON edis AG 70.2

E.ON Avacon AG 65.8

TEN Thringer Energienetze GmbH 53.0

E.ON Bayern AG 100.0

E.ON Mitte

E.ON Westfalen Weser

E.ON Hanse

E.ON Bayern

TEN Thringer Energienetz GmbH

E.ON Avacon

E.ON edis

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Europe

Distribution System in the German Gas Market



E.ON Hanse AG 73.8

E.ON Westfalen Weser AG 62.8

E.ON Mitte AG 73.3

E.ON edis AG 70.2

E.ON Avacon AG 65.8

TEN Thringer Energienetze GmbH 53.0

E.ON Bayern AG 100.0

E.ON Mitte

E WIE EINFACH

E.ON Westfalen Weser

E.ON Hanse

E.ON Bayern

TEN Thringer Energienetz GmbH

E.ON Avacon

E.ON edis

Majority shareholdings

Gas supply of E.ON Hanse in the supply area of E.ON edis

41

Europe

Activities in the German Sales MarketPower



E WIE EINFACH Strom & Gas GmbH 100.0

E.ON Vertrieb Deutschland GmbH 84.6

Key Figures Power


Power supplied 303.9 billion kWh1 555 billion kWh

Customers 8 million 45 million

Transmission system length (220/380 kV) 10,600 km 111,200 km3

Generation capacity 24,851 MW 138,424 MW

Generation output 122.3 billion kWh 490 billion kWh

1Including sale of power of E.ON Energy Sales (EES) in other European Countries.2Source: BDEW.3Including 110 kV.

E WIE EINFACH

E.ON Vertrieb DeutschlandMunich

Cologne

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Europe

Activities in the German Sales MarketGas

Key Figures Gas

As of December 31, 2008Central Europeshareholdings1 Overall market

Gas supplied 100.6 billion kWh 922.2 billion kWh

Customers 1.5 million 19.1 million2

1Consolidated shareholdings >50.0 percent.2Source: eurogas.

Central EuropeMajor Shareholdings Gas


E WIE EINFACH Strom & Gas GmbH 100.0

E.ON Vertrieb Deutschland GmbH 84.6

E WIE EINFACH

E.ON Vertrieb DeutschlandMunich

Cologne

43

Europe

Activities in the Netherlands

Central EuropeShareholdings


E.ON Benelux 100.0

Key Figures Power and Gas


Power supplied1, 2 1.2 billion kWh 95 billion kWh

Customers 0.11 million 8.0 million

Generation capacity 1,900 MWel 20,904 MWelGeneration output 10.5 billion kWh 96 billion kWh

Gas supplied 3.3 billion kWh

Gas customers 0.15 million

1Source: BDEW.2Only retail business.

Leiden 81 MWThe Hague 100 MWUCML 78 MWMaasvlakte 1,066 MW

Galilestraat 209 MWDelft 93 MWRoCa 269 MW

Gas-fired power station


Nether lands

Belgium

Luxembourg

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Key Figures

As of December 31, 2008 France Overall market1

Power supplied2 18 billion kWh 441 billion kWh

Attributable generation capacity 1,550 MW 115.9 GW

Generation output2 10 billion kWh 544,7 billion kWh

Gas supplied 10,4 billion kWh 523 billion kWh

Customers 195 34 million

1Source: CRE.2Pro forma full-year figures.

Activities in France

Europe


Paris

253 MW Hornaing

1,086 MW Emile Huchet

270 MW Lucy

868 MW Gardanne

45

Europe

Activities in Switzerland

Minority shareholding 20 percent

Key Figures

As of December 31, 2008Central Europeshareholdings1 Overall market3

Power supplied2 7.8 billion kWh 56.2 billion kWh


Transmission system length 711 km 12,816 km

Generation capacity 2,205 MW 17,306 MW

1Source: BKW. Figures not consolidated into E.ON Group.2In Switzerland.3As of December 31, 2006.

E.ON EnergieShareholdings


BKW 21.01

1Equity interest 21.0 percent, voting interest 20.0 percent.

BKW21%

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Europe

Central Europe EastActivities in the Power Market


Minority shareholdings 20 percent; management by E.ON

Slovakia

Hungary

Czech Republic

Romania

Bulgaria

47

Key Figures Power1

As of December 31, 2008Central Europeshareholdings2 Overall market3

Bulgaria

Power supplied 5.3 billion kWh 33 billion kWh


Transmission system length (110 kV) 34 km 14,610 km

Generation capacity 0 MW 9,675 MW

Romania





Slovakia





Czech Republic





Hungary





1Key figures of all shareholdings > 20 percent as of December 31, 2008.2Only power plants > 20MW included.3Overall market figures pro forma, as not all data is available for 2008.

Central EuropeShareholdings Power


Bulgaria

E.ON Bulgaria EAD (holding and services) 100.0

E.ON Bulgaria Grid AD 67.0

E.ON Bulgaria Sales AD 67.0

Romania

E.ON Romnia S.R.L. 20.41

E.ON Moldova Distributie S.A. 51.0

E.ON Moldova Furnizare S.A. 51.0

Slovakia

E.ON Slovensko, a.s. 100.0

Czech Republic

E.ON Czech Holding AG 100.0

Teplrna Otrokovice, a.s. 66.0

E.ON Distribuce, a.s. (power and gas) 100.0

E.ON Energie, a.s. (power and gas) 100.0

E.ON esk republika, s.r.o. 100.0

E.ON Trend s.r.o. 100.0

Hungary

E.ON Hungria Energetikai ZRt. 100.0

Debreceni Kombinlt Ciklus Erm Kft. 100.0

Nyregyhzi Kombinlt Ciklus Erm Kft. 100.0

E.ON Energiatermel Kft. 100.0

E.ON Dl-dunntli ramhlzati ZRt. 100.0

E.ON szak-dunntli ramhlzati ZRt. 100.0

E.ON Tiszntli ramhlzati ZRt. 100.0

E.ON Energiaszolgltat Kft. 100.0

E.ON Hlzati Szolgltat Kft. 100.0

E.ON gyflszolglati Kft. 100.0

E.ON Gazdasgi Szolgltat Kft. 100.0

1Additional 69.8% held by E.ON Ruhrgas International.

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Europe

Central Europe EastActivities in the Gas Market

Key Figures Gas


Czech Republic

Gas supplied 3.7 billion kWh 93.8 billion kWh1


Hungary

Natural gas supplied 12.2 billion kWh 137.8 billion kWh


1Source: eurogas.

Central EuropeShareholdings Gas


Czech Republic

E.ON Distribuce, a.s. (power and gas) 100.0

E.ON Energie, a.s. (power and gas) 100.0

E.ON esk republika, s.r.o. 100.0

Jihoesk plynrensk, a.s. (JP) 100.0

Hungary

E.ON Dl-dunntli Gzhlzati ZRt. (DDGZ) 99.9

E.ON Kzp-dunntli Gzhlzati ZRt. (KGZ) 99.6

Romania

E.ON Gas Distributie S.A.1 51.0

E.ON Gas Romnia1 51.0

1Since December 31, 2008.


Minority shareholdings 20 percent

PPSlovakia

Hungary

Czech Republic

Romania

Bulgaria

49

Power Customers in Europe

Customers in millions Total: approx. 17.0

Direct- and Indirect-Access Customers

approx. 1.7 Indirect-access customers in Germany via companies with shareholdings >20.0%

approx. 1.3 Indirect-access customers outside Germany via companies with shareholdings >20.0%

Direct-access customers in Germany

(consolidated Group companies)

Direct-access customers outside Germany

approx. 7.6

approx. 6.5

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Composition of Power Prices in Germany

ct/kWh Average price for households: 22.70

13.88 Procurement, grid access fee, energy data management, and sales

3.62 VAT

2.05 Power Tax

1.79 Concession fee2

1.36 CHP & Renewables Act

1Power supplied to households; annual sales volume 3,500 kWh as of spring 2009.2Concession fees vary from city to city depending on number of residents.Source: BDEW.

Average Power Price for Households1

Power generation, transmission and supply CHP Act Power Tax Renewable Energies Act Concession fee

Average Power Price for Industrial Customers1

1999

8.86

2000

6.05

2001

6.47

2002

6.86

2003

7.98

2004

8.92

2005

9.73

2006

11.53

2007

11.41

2008 20092

13.25 12.07ct/kWh

12

10

8

6

4

2

1Supply at medium voltage level. Demand of 100 kW/1,600 h to 4,000 kW/5,000 h.2As of spring 2009.Sources: VEA, BDEW.

0.15

0.11

0.09

8.51

0.26

0.13

0.20

5.46

0.31

0.11

0.19

0.24

5.62

0.36

0.11

0.05

0.35

5.99

1.23

0.11

0.05

0.42

6.17

1.23

0.11

0.05

0.51

7.02

1.23

0.11

0.05

0.69

7.65

1.23

0.11

0.05

0.88

9.26

1.23

0.11

0.05

0.98

9.04

1.23

0.11

0.05

1.13

10.74

1.23

0.11

0.05

1.13

9.55

Generation, network, supply State burden

100%

80%

60%

40%

20%

NorwayGermany Hungary Belgium Poland Czech RepublicRomania

Power Price in Europe1

1Residential customers with annual consumption of 2,5005,000 kWh.Source: Eurostat.

51

Composition of Power Prices

Source: BDEW, 2009.

Monthly power bill fora 3-person household (3,500 kWh/a)

20081998

63.1549.95

37.60

12.35

37.86

25.29

60.00

40.00

20.00

Taxes, Renewable Energies Act, CHP Act, Power Tax, Concession fee, VAT

Generation, transport and supply

Development of Power Prices for Average Household Customers in Germany

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Key Figures

Central Europe Key Figures

in millions 2008 2007 +/ %

Total sales 41,135 32,029 +28.4

Adjusted EBITDA 6,266 6,222 +0.7

Depreciation/amortization and write-downs 1,545 1,552

Adjusted EBIT 4,720 4,670 +1.1

Cash provided by operating activities 4,016 3,811 +5.4

Returns

Capital employed1 19,310 18,943 +1.9

ROCE 24.4% 24.7% 0.33

Cost of capital 9.2% 9.3% 0.13

Power procurement2

Owned generation 138.3bn kWh 134.6 bn kWh +2.8

Purchases 251.4 bn kWh 192.6 bn kWh +30.1from jointly owned power plants 4.5 bn kWh 8.3 bn kWh 45.8Energy Trading/outside sources 246.9 bn kWh 184.3 bn kWh +34.0

Power procured 389.7 bn kWh 327.2 bn kWh +19.1

Station use, line loss, pumped storage hydro 13.5 bn kWh 13.5 bn kWh

Power sales 376.2 bn kWh 313.7 bn kWh +19.9

Power sales by customer segment

Residential and small commercial 46.8 bn kWh 44.1 bn kWh +6.1

Industrial and large commercial 82.0 bn kWh 83.7 bn kWh 2.0

Sales partners 101.7 bn kWh 105.8 bn kWh 45.3

Wholesale market/Energy Trading 145.7 bn kWh 80.1 bn kWh +81.9

Installed attributable generating capacity 28,749 MW 28,479 MW +1.0

1Annual average.2Excludes trading operations, which are recognized net under IFRS.3Change in percentage points.

53

Pan-European GasMarket Unit

54 Introduction

55 Market Overview Germany

56 Business Activities

57 E.ON RuhrgasBusiness Activities along the Gas Value Chain

57 E.ON Ruhrgas2008 Sales

58 European Gas Imports Development

59 E.ON RuhrgasGas Supply Structure by Country in 2008

60 E.ON RuhrgasSales Volumes by Sectors 2008

61 E.ON Ruhrgas20032008 Sales Abroad

61 European Gas Infrastructure

62 Liquefied Natural Gas (LNG)

63 Activities of E.ON Ruhrgas in LNG

64 LNG Flows to Europe 2008 vs. 2010

65 E.ON RuhrgasInternational Shareholdings

67 E.ON RuhrgasUpstream Activities

68 E.ON RuhrgasActivities in Russia

69 Gas Production in RussiaYuzhno Russkoye

70 E.ON RuhrgasPipeline and Storage Joint Ventures

71 E.ON RuhrgasPipelines in Germany

71 E.ON RuhrgasTransmission

72 E.ON RuhrgasTransport

73 E.ON Gas Storage

75 E.ON RuhrgasInvolvement in the German Gas Market

76 German Natural Gas Consumption by Market Sector

76 Residential Heating Systems in Germany

77 E.ON RuhrgasActivities in Slovakia

78 E.ON RuhrgasActivities in Hungary

79 E.ON RuhrgasActivities in Romania

80 Key Figures

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54 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.ONs non-retail

gas activities in Europe. In terms of sales, E.ON Ruhrgas is

one of the leading non-state-owned gas companies in Europe

and the largest gas company in Germany. E.ON Ruhrgass

principal business is the exploration and production, supply,

transmission, storage and sales of natural gas. E.ON Ruhrgas

also holds numerous stakes in Germany and other European

gas companies, as well as a minority shareholding in Gazprom,

Russias main natural gas exploration, production, transporta-

tion and marketing company. In 2008, the Pan-European Gas

market unit recorded revenues of 27.4 billion and adjusted

EBIT of 2.6 billion.

In 2008, E.ON Ruhrgas entered into the following significant

transactions:

In October 2008 E.ON reached an agreement with Russias Gazprom to acquire a 25-percent stake in Yuzhno Russkoye,

a natural gas field in Siberia. Yuzhno Russkoyes reserves

total more than 600 billion m3, making it one of the worlds

largest gas fields. Production at Yuzhno Russkoye started

in 2008 and is expected to reach 25 bcm of natural gas

per year in 2009.

E.ON Ruhrgas transferred ownership of its gas transport pipeline system in Germany to E.ON Gastransport.

The storage business has been repositioned in a separate subsidiary, Essen-based E.ON Gas Storage GmbH, to

manage the E.ON Groups storage operations throughout

Europe.

E.ON Ruhrgas acquired a 5-percent stake and 3 billion m3 of annual regasification capacity at GATE, an LNG terminal

to be built in Rotterdam.

E.ON Ruhrgas was selected as an investor for a new LNG project in West Africa. Accordingly, E.ON Ruhrgas has

a stake in all phases of this promising project, from pro-

duction to liquefaction, and signed an agreement for the

development of the gas infrastructure.

Gas Terra and E.ON Ruhrgas extended their existing gas supply contract up to 2028 and thus increased the con-

tractual volume of Dutch gas by approx. 60 billion m3.

E.ON Ruhrgas and the Swiss buyers consortium Swissgas signed a contract for the delivery of 10 billion kWh of

natural gas annually for the period 20102015 covering

nearly one third of Switzerlands annual gas needs.

55

Market Overview Germany

5 supra-regional long-distance companies Level 1

Gas consumption

995 billion kWh

10 regional long-distance gas companies

Transmission companies

Imports

967 billion kWh

Domestic production

152 billion kWh

Over 700 regional and local municipalities

Distribution companies

Source: WEG Wirtschaftsverband Erdl- und Erdgasgewinnung e. V., Statistisches Bundesamt, BMWi.

Pan-European GasGas Markets with E.ON Core Presence

Billion kWhGas supplied

as of Dec. 31, 2008

Slovakia 70.9

Hungary 149.3

Romania 186.6

Italy 897.0

Germany 995.0

Source: E.ON.

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Business Activities1

E.ON AG

E.ON Ruhrgas AG 100%

Gas exploration and production

Gas procurement

Gas sales

Gas storage

Network operation

Technical development, advice, service

Up-/Midstream Activities Downstream Activities

Exploration & Production E.ON Ruhrgas UK

Exploration &

Production Ltd. 100%

E.ON Ruhrgas Norge AS 100%

Thga AG 100%Approx. 110 energy shareholdings in

Germany

TransmissionE.ON Gastransport

GmbH 100%

Marketing of transmission capacities/

operation of pipeline network

E.ON Ruhrgas International AG 100%Approx. 25 energy shareholdings

Development and expansion of

business activities in Europe

StorageE.ON Gas Storage GmbH 100%

Project companies and other companies Worldwide design and construction of

pipeline systems for the transporta-

tion, storage and distribution of gas,

oil, products, water and slurries

Construction and operation of under-

ground gas facilities

Construction and operation of high-

pressure gas pipelines

Laying and rental of fibre-optic cables

for telecommunications companies

OAO Gazprom 6.4%2

1 As of December 31, 2008.2 To be reduced to 3.5% after finalization of asset swap with Gazprom.

57

E.ON RuhrgasBusiness Activities along the Gas Value Chain

E.ON Ruhrgas2008 Sales

Major market positions

E.ON Ruhrgas is the market leader in Germany with total gas sales of 687 billion kWh (2008).

E.ON Ruhrgas is among the leading gas companies in Europe.

Sound relationship with all major gas producers, above all in the Netherlands, Norway and Russia.

Strategic pipeline assets and transmission rights facilitate access to important sales markets in Europe.

Competence and expertise in pipeline operations as a basis for participation in other strategic pipeline projects.

Newly established E.ON Gas Storage subsidiary is among the leading storage operators in Europe.

Upstream Midstream Downstream

Production Transmission/Storage Supply/Wholesale Distribution Retail

non-regulated regulated (Storage: different systems, e.g. in Germany no tariff regulation)

6.15

22.3

in billions

Sales by Business

Other/consolidation

Downstream/shareholdings

Up-/Midstream

0 2 4 6 8 10 12 14 16 18 20 22

1.03

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European Gas Imports Development

Key challenges of European gas markets

The financial crisis currently leads to reduced gas demand and to temporary overcapacities in the markets.

In the long run increasing gas demand and declining indigenous production require additional import sources

that need to be developed in time.

Goal of EU liberalization policy to promote more open and competitive gas markets: e.g. remove bottlenecks in

cross-border capacities, develop trading hubs.

Enhance security of supply (long-term supply contracts, additional infrastructure, further supply diversification

opportunities through LNG).

Billion m3

Gas Supply

1Of which: Nigeria 3%, Egypt 1%, Qatar 1%, Trinidad and Tobago 1% (2008). Basis for imports: contracted volumes and prospective contract prolongations. For Norway extensive utilization of import capacities is assumed.Provisional data for 2008.

200810%

201516%

202017% LNG share in supplies

538 620645 650700

18% Domestic production22%35%

13% Norway14%

18%

28% Russia30%27%

8% Algeria9%10%

11% Other non-EU imports112%10%

6% Advanced projects6%

16% Future projects7%

59

E.ON RuhrgasGas Supply Structure by Country in 2008

Long-term import contracts secure gas supplies

In order to provide a sound basis for gas supplies, E.ON Ruhrgas concludes long-term agreements with producers

and relies on a diversified portfolio of purchase sources.

Long-term take-or-pay commitments enable the producers to invest the billions required to develop new gas fields

and lay the pipelines to connect them to the transmission

infrastructure.

At the same time, these commitments are the foundation for ensuring long-term supplies of gas at competitive

prices in the purchasing countries.

This fair balance of risks is a sound basis for cooperation in a spirit of trust and in the interests of both parties.

Billion kWh Total: 680 billion kWh

121.4 Germany

114.8 Netherlands

41.7 U.K.

25.4 Denmark

22.0 Others1

Norway 176.9

Russia 177.3

E.ON RuhrgasGas Supplies by Country

1Italy, France, Austria, Hungary, Spain and Slovakia.

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E.ON RuhrgasSales Volumes by Sectors 2008

Contractual flexibility

Most customers buy all the gas they need from E.ON Ruhrgas under flexible contracts.

E.ON Ruhrgas structures its gas deliveries to the distri-bution companies flexible enough so that they are able

to meet the fluctuations in demand due to rises and falls

in temperature.

This flexibility can be provided based on the contractual flexibility of the E.ON Ruhrgas supply portfolio and the

underground storage facilities.

E.ON Ruhrgas

Contracts

1,411

Points of supply

1,889

Breakdown of natural gas sales

38% 24% 13% 25%

Number of customers/countries

32 customers approx. 100 customers approx. 150 customers 15 countries

Regional distributors Local utilities Industrial customers Sales abroad

Prices

Gas prices are based on competing fuels (mainly gas oil). The gas prices follow the development of gas oil prices

with a certain time lag.

The gas prices for the distribution and industrial customers of E.ON Ruhrgas are adjusted automatically at pre-deter-

mined intervals in accordance with the price adjustment

clauses agreed in the contracts.

61

Lisbon

SinesHuelva

Crdoba

MadridValencia

BilbaoBarcelona

Lyon

Paris

Bern

BrusselsEssen Prague

Vienna

RovigoLjubljana

Zagreb

Belgrade

Sofi a

IstanbulBrindisi

Rome

Athens

TunisSkikdaAlgiersArzew

BucharestLa Spezia

Krk

BratislavaBudapest

Isle of GrainLondon

Emden

Ecofi sk

Tyra

Dublin

Belfast

Sleipner

Heimdal

FriggTroll

KollsnesOseberg

Karsto

Oslo

Stockholm

Helsinki

St. Petersburg

Minsk

WarsawBerlinWilhelmshaven

Copenhagen

Stavanger

Statfjord Gullfaks

Milford Haven

Zeebrugge

Montoir

Fos-sur-Mer

Cartagena

El Ferrol

E.ON Ruhrgas20032008 Sales Abroad

European Gas Infrastructure

LNG regasification terminals existing planned/under construction

Pipelines existing planned/under construction

Gas field

Billion kWh

65

2003

88

2004

135

2005

160

2006 2007

180

2008

175

150

100

50

E.ON Ruhrgas20032008 Sales Abroad

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Liquefied Natural Gas (LNG)

Options

Strong projected growth in global LNG demand which gives

E.ON opportunity to:

Diversify gas supply portfolio through long-term and spot LNG supply contracts and regasification capacity in

E.ONs target markets.

Potentially build up an integrated LNG position including upstream.

Value chain

Equity gas Liquefaction Transport by ship Regasification Markets

Percentages

Source: E.ON Ruhrgas.

10 LNG

90 Pipeline gas

LNGNatural Gas Supplies to EU30 and Share in 2008

Percentages

Source: E.ON Ruhrgas.

24 LNG

76 Pipeline gas

LNGNatural Gas Supplies to EU30 and Share in 2020

63

Activities of E.ON Ruhrgas in LNG

E.ON is actively developing all parts of the LNG value chain.

The global market for LNG is highly competitive. E.ON is com-

peting with players from all over the world, e.g. utilities and

international oil and gas companies.

Supply

The current geographical focus for securing LNG supplies is

the Middle East and Africa. In these regions E.ON Ruhrgas is

active in:

Establishing contacts and building relevant relationships with stakeholders.

Analyzing and exploring E&P potential. Discussing with potential upstream and liquefaction

partners.

Ongoing negotiating on Sales Purchase Agreements (SPAs) with potential suppliers of LNG.

Liquefaction

Furthermore, E.ON Ruhrgas has been selected as an investor for a new integrated gas liquefaction (LNG)

project in Equatorial Guinea. E.ON Ruhrgas will hold a

share of 5 percent and participate in several stages of

this LNG project: gas infrastructure, gas collection and

liquefaction.

Shipping

Focusing on competitive transportation costs combined

with high HSE1 and reliability standards, E.ON is preparing to

secure needed shipping capacity for fob2 volumes under

long-term SPAs and for short-term spot or trading cargoes.

Regasification

E.ON Ruhrgas is currently developing strategic market entries

in Europe by participating in several regasification projects

or by contracting regasification capacity:

Isle of Grain Terminal (U.K.): contracted annual capacity of 1.7 billion m3/year for the duration of 19 years starting

in 2010.

Wilhelmshaven (Germany): Majority interest in DFTG (Deutsche Flssigerdgas Terminal Gesellschaft).

Isle of Krk (Croatia): Shareholder in a consortium (Adria LNG d.o.o.) with Geoplin, OMV, Total, RWE and other

Croatian partners to build a regasification terminal with

a capacity of 10 to 15 billion m3/year and a planned start

of operations in 2012.

Trading

Beside the long-term LNG supply contracts a global LNG

spotmarket has emerged where idle capacities and arbitrage

opportunities are being utilized. Trading volumes however

remain rather limited. For E.ON, acquiring LNG spot cargoes

allows for a quicker entry into the market and to gain opera-

tional experience.

1HSEhealth, safety, environment.2fobfree on board.

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LNG Flows to Europe 2008 vs. 20101

LNG supplies 2008: 55.3 billion m3

Imports 2010: 80 billion m31 In billion m3/year.2 Including 3.5 billion m3/year from Nigeria via Montoir for Enel/Italy.Source: Cedigaz.

from Norway

Isle of GrainMilford Haven

Montoir

Zeebrugge

Rovigo

La Spezia

Fos-sur-Mer

BilbaoEl Ferrol

Sagunto

Sines

Huelva Cartagena

Arzew

Skikda

BrindisiMarmara Ereglisi

Revithoussa

Marsa el Brega

Aliaga

from Egypt, Oman, Quatar, Yemen

from Egypt, Oman, Quatarfrom Nigeria

from Trinidad

Barcelona

3.5 Enel

2.6

28.7

1.6

0.9

5.3

12.62

2.5

1.0

4

27

15

10

6

12

1

5

65

E.ON RuhrgasInternational Shareholdings

As of December 31, 2008.

Supply countrySupplies/supply agreementCooperation agreementAffi liateOffi ce/station

Lithuania

Latvia

Estonia

Finland

Russia

Belarus

Ukraine

Romania

Bulgaria

Croatia

Slovenia

Austria

Germany

Luxembourg

Belgium

Netherlands

SwitzerlandFrance

Italy

Liechtenstein Hungary

Slovakia

CzechRepublic

UnitedKingdom

Poland

Denmark

Sweden

Norway

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E.ON Ruhrgas International: Shareholdings

E.ON Ruhrgas International: Shareholdings outside Germany

Shareholdings

Share held Gas sales 2008 billion kWhCountries %

Gasnor AS Norway 14.00 2.2

Swedegas AB Sweden 29.59

Gasum Oy Finland 20.00 45.0

AS Eesti Gaas Estonia 33.66 7.7

JSC Latvijas Ga- ze Latvia 47.23 16.8

AB Lietuvos Dujos Lithuania 38.91 12.6

Rytu Skirstomieje Tinklai AB Lithuania 20.28

Inwestycyjna Splka Energetyczna Sp. z o.o. (IRB) Poland 50.00

EUROPGAS a.s.1 Czech Republic 50.00

Nafta a.s. Slovakia 40.45 1.3

SPP as2 Slovakia 24.50 62.2

E.ON Fldgz Trade ZRt. Hungary 100.00 118.9

E.ON Fldgz Storage ZRt.3 Hungary 100.00

Panrusgz ZRt. Hungary 50.00 91.4

Colonia-Cluj-Napoca-Energie S.R.L. (CCNE) Romania 33.33

S.C. Congaz S.A. Romania 28.59 3.3

E.ON Romania S.R.L.4 Romania 69.81 30.9

Ekopur d.o.o.5 Slovenia 100.00

Holdigaz SA Switzerland 2.21

Enovos S.A.6 Luxembourg 10.8 16.6

1EUROPGAS a.s. holds 50.0 percent of SPP Bohemia a.s. and 48.18 percent of Moravsk naftov doly a.s. (MND) in the Czech Republic.2E.ON Ruhrgas Mittel- und Osteuropa GmbH has an indirect interest of 24.50 percent in SPP, Slovakia.3Held by E.ON Gas Storage GmbH.4Steered and consolidated by E.ON Energie AG (20.36%); further shareholder: European Bank for Reconstruction and Development (EBRD), London (9.83%).5Ekopur d.o.o. holds 7.1 percent of Geoplin d.o.o. in Slovenia.6Enovos is the result of a merger between SOTEG, CEGEDEL, and Saar Ferngas which became effective as of January 23, 2009.

67

E.ON RuhrgasUpstream Activities1

Norwegian Sea

Central North Sea

Southern North Sea

Minke

Hunter

Ravenspurn North

Johnston

Caister

Norway

U.K.

1Only fields in production by the end of 2008; therefore without Skarv and Rita.

Europe

Norwegian Sea

Interest

Njord 30%

E.ON Ruhrgas Exploration & Production

2008 2007 2006

Gas

U.K. 768 million m3 751 million m3 725 million m3

Norway 592 million m3 20 million m3

Total gas 1,360 million m3 771 million m3 725 million m3

Oil and liquids

U.K. 2.5 million bbl 2.9 million bbl 2.7 million bbl

Norway 3.4 million bbl 2.1 million bbl 2.6 million bbl

Total oil and liquids 5.9 million bbl 5.0 million bbl 5.3 million bbl

Total production 14.4 million boe 9.8 million boe 9.8 million boe

Central North Sea

Interest

Elgin/Franklin 5.2%

Scoter 12.0%

West Franklin 5.2%

Merganser 7.9%

Glenelg 18.6%

Southern North Sea

Interest

Ravenspurn North 28.8%

Johnston 50.1%

Hunter 79.0%

Caister 40.0%

Minke 42.7%

Merganser

Scoter

Elgin

Glenelg

West Franklin

Franklin

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E.ON RuhrgasActivities in Russia

Gazprom Group

Gas reserves 33.1 trillion m3

Gas production1 549.7 billion m3

Pipeline system1 159,500 km Exports Europe1 184.4 billion m3

CIS and Baltic states 96.5 billion m3

1As of December 31, 2008. Source: Gazprom Management Report.2To be reduced to 3.5% after finalization of asset swap with Gazprom.

Partnership with Gazprom

Russia is one of the main sources of natural gas for Europe.

E.ON Ruhrgas and Gazprom with long-standing partnership.

Long-term supply contracts running up to 2036. E.ON Ruhrgas interest/direct and indirect 6.4 percent2.

69

Supergiant Giant (> 100 billion m3) Gas field

Pipeline system existing pipelines planned pipelines

Start of production Q4/2007. Proven and probable reserves of more than 600 billion m or

at least 35 years of production.

Plateau production of approximately 25 billion m/year (equivalent to yearly demand of Spain 100 percent or U.K.

25 percent).

Total investment for field development 2 billion. E.ON agreed participation of nearly 25 percent.

Gas Production in RussiaYuzhno Russkoye

Russia

Surgut

NoyabrskSergino

Sveltyor

Berezovo

Salekhard

Labytnangi

Vorkuta Novyy Port

Jamburg

Dudinka

Norilsk

UrengoyYuzhno Russkoye Pa

n-E

urop

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Gas

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E.ON RuhrgasPipeline and Storage Joint Ventures

Joint venture pipelines: existing planned/in construction

existing (transmission rights only)

Joint venture underground storage

Europe

Shareholdings1

Percentages

(NETG) Nordrheinische Erdgastransportleitungsgesellschaft mbH & Co. KG, Haan (Rhld.) 50.00

(METG) Mittelrheinische Erdgastransportleitungsgesellschaft mbH, Haan (Rhld.) 100.00

(TENP) Trans Europa Naturgas Pipeline GmbH & Co. KG, Essen 51.00

MEGAL Mittel-Europische Gasleitungsgesellschaft mbH & Co. KG, Essen 51.00

DEUDAN Deutsch/Dnische Erdgastransport-Gesellschaft mbH & Co. KG, Handewitt 25.00

GHG Gasspeicher Hannover Gesellschaft mbH, Hanover 13.20

NETRA GmbH Norddeutsche Erdgas Transversale & Co. KG, Emstek 40.60

(EGL) Etzel Gas-Lager GmbH & Co. KG, Friedeburg-Etzel 74.80

Transitgas AG, Zurich, Switzerland 3.00

Baumgarten-Oberkappel Gasleitungsgesellschaft m.b.H., Vienna, Austria2 15.00

(IUK) Interconnector (UK) Limited, London, United Kingdom 25.09

BBL Company V.O.F., Groningen, Netherlands 20.00

Nord Stream AG, Zug, Switzerland 20.00

Tauerngasleitung Studien- und Planungsgesellschaft mbH (TGL), Wals, Austria 45.00

E.ON Ruhrgas Nord Stream Anbindungsgesellschaft, Essen3 100.00

1As of December 31, 2008.2Holds the assets of the WAG West Austrian Gasline via a financial lease agreement with OMV Gas.3Has a 25% share in NEL and a 20% share in OPAL.

Zeebrugge

Brussels

Saarbrcken

TENP

SEL

MEGAL

Waidhaus Prague

Passau

WAG

ViennaMunich

Bern

Milan

Transitgas

Wallbach

NETG

GHG

Salzwedel

Hamburg

NEL

Berlin

Dresden

OPAL

DEUDAN

Nord Stream

Essen

Emden EGL

IUK

BBLBacton

London

METG

71

E.ON RuhrgasTransmission

Transmission services

Gas transmission through the gas network operated by E.ON Gastransport, a wholly-owned subsidiary of E.ON

Ruhrgas AG.

Storage services

Provision of storage capacity of E.ON Ruhrgas AG.

Virtual trading points

Handling the gas traded at the virtual trading points of E.ON Gastransport.

Transmission management in third-party networks

Purchasing of transmission capacity in national and international third-party networks.

Handling of transmission in third-party networks.

E.ON RuhrgasPipelines in Germany

E.ON Ruhrgas Pipelines in Germany1

km TotalMaintained by

E.ON Ruhrgas AG

Owned by E.ON Ruhrgas 6,746 6,428

Co-owned pipelines 1,547 602

DEUDAN (PC) 110

EGL (PC) 67 67

MEGAL (PC) 1,092 1,092

METG (PC) 425 425

NETG (PC) 285 144

NETRA (PC) 341 106

TENP (PC) 998 998

Companies in which E.ON Ruhrgas AG holds a stake through its subsidiaries ERI and Thga 2,037

Owned by third parties 1,043

Total in Germany 11,611 12,942

1As of December 3

Documents

E.on Strategy and Keyfigures 2009