Business Environment: Opportunities and Obstacles In Light of the International Investment Strategy of E.ON Energie Group Dr. Ulrich Streibl April 2004

Seite 2 E.ON Energies current focus regions* D B NL L CH CZ PL SK A 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 Data 1 1 According to the 2004 financial statements 2 Excluding trading business. Sales (excl. electricity tax) 19.7 billion Employees36,811 Electricity deliveries billion kWh Power plant capacity27,542 MW Grid length (380/220/110 kV)55,000 km Gas sales volume billion kWh E.ON Energie AG München

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&P LNG Transport Distribution Storage ˜˜˜˜˜˜˜˜ 420 Mrd 540 Mrd 96 Mrd 328 Mrd Generation Maintenance Transmission Distribution Gas:Power:

Seite 5 Vertically Integrated Electricity and Gas Business With International Orientation Production/In- house Gas Production Generation Transmission Trading Distribution & Sales Procurement Transport Storage Trading Distribution & Sales Up- stream Mid- stream Down- stream ElectricityGas Regional markets Value-added chainElectricity-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