Recent issues in Germany APEx Conference Dr. Hans-Bernd Menzel Leipzig, October 11, 2004

2 EEX‘s participant base is international participants from 15 countries 108 Spot Market participants 48 Derivatives Market participants 51 OTC Clearing participants 9 General Clearing Member 5 Broker 5 Market Maker 4 Transmission grid operators

3 Liberalization of electricity market in Germany is achieved Spot Market at EEX Recognized price signal in Continental Europe - By regulatory bodies - By laws - By bilateral contracts - By derivative OTC-products Hedging available on a long-term basis Next steps: what is coming soon

4 The turnover of physical power on the spot market rises continuously 10% of the German electricity consumption MWh per weekEuro per MWh

5 Liberalization of electricity market in Germany is achieved Spot Market at EEX Recognized price signal in Continental Europe - By regulatory bodies - By laws - By bilateral contracts - By derivative OTC-products Hedging available on a long-term basis Next steps: what is coming soon

6 Not a German market anymore EEX is in the center of a Central European price zone

7 Not a German market anymore High correlation between Germany and France Source: Powernext Website

8 Liberalization of electricity market in Germany is achieved Spot Market at EEX Recognized price signal in Continental Europe - By regulatory bodies - By laws - By bilateral contracts - By derivative OTC-products Hedging available on a long-term basis Next steps: what is coming soon

9 Risk hedging instruments available... for the current month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Year 1 Year 2 Month 0 Year 3 Year 4 Year 5 Year 6 Base and peak load Futures:... for the next 6 months in the future... for the next 7 quarters in the future... for the next 6 years in the future

10 EEX Futures are accepted Open Interest: 120 TWh or more than 4.2 billion Euro

11 Liberalization of electricity market in Germany is achieved Spot Market at EEX Recognized price signal in Continental Europe - By regulatory bodies - By laws - By bilateral contracts - By derivative OTC-products Hedging available on a long-term basis Next steps: what is coming soon

12 Risk Hedging Instruments are available price of underlying future (Euro/MWh) profit strike price Premium example: buyer of a Call-Option (Long Call) loss Options will be launched: on November 8, 2004

13 CO 2 -emissions trading The energy intensive industry represents about two thirds of all certificates is already connected to EEX‘s trading and clearing system has the trained personnel already in house seeks low transaction costs and low process risk

14 CO 2 -emissions trading EEX will launch a market for CO 2 -emissions certificates on its Xetra trading system - integrated with electricity market - no additional effort for electricity traders - low costs through usage of existing infrastructure - Short time-to market lauch will be early January 2005

15 Integration of Spot Market in February One screen for power and CO 2 One software One connection One training and admission process Synergies in clearing&settlement