Business Environment: Opportunities and ObstaclesIn Light of the International Investment Strategy of E.ON Energie Group Dr. Ulrich Streibl April 2004
E.ON Energie‘s current focus regions* In Europe: No. 2 in electricity and gas sales No. 2 in power generation NL E.ON Benelux E.ON Polska B PL D L E.ON Czech Holding CZ E.ON Energie SK ZSE CH A BKW E.ON Hungária H RO RAG-Beteiligungs-gesellschaft E.ON Moldova E.ON Bulgaria BL * Majority and Minority Shareholdings
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 E.ON Energie AG München Gas sales volume2 103 billion kWh E.ON Energie Key Corporate Data1 1 According to the 2004 financial statements 2 Excluding trading business.
Power and gas investments in Europe 2001 to 2030 Power: Gas: Generation Maintenance Transmission Distribution 420 Mrd € 540 Mrd € 96 Mrd € 328 Mrd € E&P LNG Transport Distribution Storage 128 Mrd € 16 Mrd € 56 Mrd € 76 Mrd € 12 Mrd € ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ A secure supply in Europe means tremendous investments. Quelle: IEA World Energy Investment Outlook 2003
Value-added chain Regional markets Electricity-gas convergence Vertically Integrated Electricity and Gas Business With International Orientation Production/In- house Gas Production Up-stream Generation Procurement Transport Storage Trading Mid-stream Transmission Trading Down-stream Distribution& Sales Distribution& Sales Regionalmarkets Electricity Gas
„Opportunities and Obstacles“ in New Markets • Obstacles/Challenges: • Legal and regulatory frameworks in flux • Politics and markets – not always friends • Compatible frameworks for Inter-State cooperation • 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
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