Central European Gas Hub ERGEG 30th, 2009

How to serve commodity trading 3000 BC 1200 AD 2000 AD 1700 AD BC100 AD First documented Trading took place in Africa Trading along the Amber Road Trading along the Silk Road Trading along the Hanse Route PHYSICAL & VIRTUAL TRADING DEVELOPMENT OF COMMODITY HUBS 1994 AD NBP Gas Hub 1999 AD APX Gas Hub 2005 AD CEGH Gas Hub 2003 AD TTF Gas Hub 1602 AD Exchange in Amsterdam & First Share 1720 AD First Crash 1771 AD Exchange in Vienna 1792 AD Exchange in New York 1200 AD Trading along the Hanse Route BC First documented Trading 3000 BC Trading along the Amber Road 100 AD Trading along the Silk Road 1409 AD First Exchange in Brugge 1540 AD Exchange in Nürnberg 1554 AD Exchange in London PHYSICAL TRADING

Hanse - Success

CEGH: one additional trading point

HUB landscape in Europe CEGHCEGH GUD TTF NBP Zeebrugge EGT PEG PSV Future potential Hubs DONG CDG

Almost 100% of respondents are currently trading at the CEGH Hub in Baumgarten: When it comes to volume of trade, 57% of traders said that the CEGH has the best chance of becoming the most important hub in CEE/SEE and would be best suited as regional trading platform. Furthermore 75% of respondents would like to have a regional price index where one would be technically and economically viable. PricewaterhouseCoopers: ordered by ERGEG in the course of the SEE Region Initiative

Development of OTC - Trade Increasing trading activities: Increasing churn rate Increasing number of customers Increasing number of nominations

Basic nominations per gas day Appr nominations per day

Herfindahl Index

Broker based trading at CEGH Dimensions of bubbles are indicating volume of trade

PSV Bid – Ask spread Price quotations in Baumgarten are reflecting the market environment

OTC Market Making - Baumgarten Products: Day Ahead BOM 2-3 Front months 2 Quarters 2 Seasons 1 Yearly contract Quantities: 10 / 30 MWh/h Bid/Ask Spread: Maximum: 1,0 EUR / MWh (1,5 for seasons/ yearly contracts)

Development from the physical to the financial services Services Title tracking service Spot Futures Backup / back down service OTC Clearing CEGH Multi Trading (CMT) / Dispatching services/Allocation/Invoicing Physical Balancing Merit order list Wheeling service No notice storage service Web based online gas auctioning Online bulletin board Physical balancing via online bulletin board CEGH Multi Trading (CMT) Dispatching

Exchange project: CEGH - WBAG Shareholder agreement 11/ 2008 Contractual setup 11/ 2008 Approval FMA (basic concept) 11/ 2008 Pre notification submitted 12/ 2008 Evaluation of IT – Systems 2008 Selection IT – Systems 11/ 2008 Operation agreements Customer agreements Interface implementation OTC dispatching IT implementation IT interfaces to WBAG IT integration customer Simulation start Go life 2009 technicallegal AG foundation 10/ 2008

CLEARING & SETTLEMENT (RISK MANAGEMENT) Physical Trade - OTC EXCHANGE TRADING OTC TRADING CCP.A Central Counterparty Austria OeKB Settlementbank General Clearing Member(GCM) Non Clearing Member(NCM) DirectClearing Member(DCM) Non Clearing Member(NCM) Non Clearing Member(NCM) Non Clearing Member(NCM) RemoteMember Clearing Agent (Bank) Exchange Trader 1 Exchange Trader 2 € t € t Day of Delivery -1 Supply & Demand

GasExchange

CLEARING & SETTLEMENT (RISK MANAGEMENT) Physical Transfer - OTC EXCHANGE TRADING OTC Transfers CCP.A Central Counterparty Austria OeKB Settlementbank General Clearing Member(GCM) Non Clearing Member(NCM) DirectClearing Member(DCM) Non Clearing Member(NCM) Non Clearing Member(NCM) Non Clearing Member(NCM) RemoteMember Clearing Agent (Bank) Exchange Trader 1 Exchange Trader 2 € t € t Day of Delivery -1 Supply & Demand

Contractual frameworks WAG 2007: Wertpapier Aufsichtsgesetz Börsegesetz (exchange law) CEBS Committee of European Banking Supervisors MiFID Market Infinancial Instrument Directive Ministry of finance Department of commerce Derivative market Spot market OTC marketEnergie – Control GmbH Interconnection Agreement (OBA) Austrian Financial Markets Supervisory Agency

Three pillars for liquidity ExchangeOTC Capacity utilization Trading platform Storage Use it or lose itinterruptible Flexible services Harmonized Environment Sufficient primary capacities

Bricks for Hub construction Back up/ down in cooperation with EFET IT in place legal Interconnection agreement / OBA Partnership with GAZPROM, VSE, CENTREX prenotified to DG - Comp Firmness Standard- isation Liquidity Trans- parency Gas exchange Market maker in OTC trade in cooperation with ICAP Cooperation with HEREN & EFET

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