1. Internal Distribution Only
Draft
Internal Distribution Only
Confidential
Enron Global Markets
Briefing Document
April 2001

2. Enron Global Markets
New business unit focusing on global markets and commodities outside Enron’s traditional gas and power markets
Global Crude, Products, Petchems, and LPGs
Coal and Emissions
Shipping
LNG
Currency, Equities and Interest Rates
Freight
Insurance
Weather
Agricultural
EGM provides a true network for market making opportunities related to commodities that are highly liquid in physical or financial terms and are enormous in market size
EGM leverages the value of Enron’s existing network and international asset positions
EGM’s operations will coordinate and leverage with our North American, European, Australian, and Japanese businesses

3. Key Accomplishments
New focused organization has added significant intellectual capital and earnings to wholesale group
Gross margin for Q1 00 to Q1 01 increased 36% to $100 million
Added $84 million of gross margin in Q and $100 million Q1 2001
Started 2 new businesses: Agriculture and Freight markets without losing focus
EGM businesses now see themselves as “core” with a full appreciation of their impact on Enron corporation
For example: Incremental $200 million EBIT = $135 million after tax times 52 multiple = EPS - $.16; $8.30/share and over $6 billion in market cap
Each business focused on their balance sheet, ROE & funds flow targets
The transfer of the Enron wholesale market making model will be illustrated in the growth in these businesses by year end
“Go Big or Go Home” philosophy

4. EGM - Gross Margin 1998-2001 ($ millions) Gross Margin
Actual Actual Actual Plan
Gross Margin $116 $186 $206 $497
Gross Margin
$497
$206
$186
$116
Note: Puerto Rico, Middle East and LNG EBIT included in 4Q 2000 and 2001 only.

5. EGM - Earnings Growth 1998-2001 ($ millions) EBIT
Actual Actual Actual Plan
EBIT $30 $81 $67 $270
EBIT
$270
$81
$67
$30
Note: Puerto Rico, Middle East and LNG EBIT included in 4Q 2000 and 2001 only.

6. EGM’s Wholesale Business
Natural Gas
Power
Coal &
Emissions
Global Crude &
Products
Weather
Financial
Trading
LNG
Agriculture
Insurance
Freight
& Shipping
Pulp &
Paper
Merchant
Investments
Metals

7. EGM’s Wholesale Business
Crude &
Products
Coal
LNG
Emissions
Weather
Shipping
EGM
Insurance
Freight
FX/Rates/
Equities
Agribusiness

8. Creating New Markets in Global Commodities
Enron Global Markets
Creating New Markets in Global Commodities
LNG Ships
Offices
Coal Activities
Crude and Product Activities
Weather
LNG Activities
Houston
London
Oslo
Singapore
Seoul
Puerto Rico
New York
Tokyo
Sydney
Panama
Dubai
Johannesburg
Frankfurt
Europe
China
Australia
USA
Korea
South Africa
Japan
India
Colombia
Venezuela
Indonesia
Poland
Russia
USA
UK (Europe)
Singapore
Australia
Panama
Korea
Japan
Argentina
USA Europe
Japan
Australia
India
Puerto Rico
Venezuela
Georgia
Louisiana
China
Australia
Korea
Oman
Abu Dhabi
Bahamas
Indonesia
Malaysia

9. Developing High Growth Wholesale Business
Coal - $40 Billion Market
Crude & Products - $3 Trillion Market
Largest domestic coal market maker
Largest importer of coal into U.K.
Expanding into Asia
Coal, emissions and dry-bulk freight markets online
Leader in risk management products
Growing presence in global freight markets
Crude and products (gasoline, heating oil, jet, gasoil, residue) MTBE, petrochemicals, plastics and LPGs
Actively transacting online
Geographic product expansion
Largest petrochemical risk management portfolio in the world
Enron
Global
Markets
Weather - $1+ Trillion Market
LNG - $18 Billion Market
Leading market maker
Products offered in every state and 10 countries on 4 continents
Successfully transacting on EnronOnline
Product offering covers entire developed world
Creating a global network of LNG supplies, transportation, terminals and markets
Developing an online market making network
Growing Enron’s LNG shipping business
Leverage EnronOnline, North American, Asian, and European Networks

10. Enron Global Markets Office of the Chairman
Mike McConnell - President & Chief Executive Officer
Jeff Shankman - Chief Operating Officer
Global Crude &
Products
John Nowlan VP
Coal, Emissions &
Freight
George McClellan MD
Global Risk Markets
Per Sekse VP
LNG & Middle East
Rick Bergsieker MD
LNG
Eric Gonzales VP
Financial Trading
Gary Hickerson MD
Freight
Dan Reck VP
Weather
Mark Tawney VP
Fundamentals
Jen Frasier
Director
Finance & Structuring
Larry Lawyer VP
Accounting
Brent Price
VP & CAO
Legal
Alan Aronowitz
VP & GC

11. Crude and Products
Key Trading
Areas
Offices
Business includes crude and products (gasoline, heating oil, jet, gasoil, residue) MTBE, petrochemicals, plastics and LPGs
Actively transacting all products on EnronOnline - Currently only platform with global coverage
Largest non-integrated petrochemical marketer in the world
Transacted 378 million physical bbls in 2000
Growth will be accelerated through increased marketing, penetration of online markets, geographic & product expansion and greater physical presence in key markets

12. 2001 Milestones Generate $150 million gross margin & $ 83 million EBIT
Reorganize to better focus on key business areas
Create global mid marketing function
Develop origination group to identify and close transactions to build structure within the business
Expand EOL product offering and transactions

13. Key Business Areas Crude Oil LPG Gasoline Petchems
Expand international crude trading, targeting 100,000 BBLS/day
Close refinery thruput deal (i.e. Orion, Western, Farmland)
LPG
Expand physical presence in USA
Expand business into Asia
Korea & Japan target markets
Gasoline
Expand ARB business
Exploit Grade/Spec opportunities
Petchems
Expand into physical polyolefins
Develop strategy partner, JV, or acquisition to accelerate growth
Exploit EOL position

14. Coal Largest domestic coal market maker
Key Active
Areas
Coal Offices
Largest domestic coal market maker
- Traded 142 million tons in 2000
Leader in risk management products and services, producer finance, eCommerce and OTC markets
Combines producer finance, marketing, trading, transportation and emissions technology to provide services to its customers
Growing business via electronic platform on EnronOnline. Currently making markets online in emissions, coal and freight
Conduit into transportation market making
Expanding into Asian markets

15. Coal 2001 Plan: $75 million gross margin; $55 EBIT
Goal is to be acknowledged as the market making leader in coal, vessel and emissions
Group Domestic Tons Traded (millions)
(projected)
International Coal Tons Traded (millions)
(projected)
International Vessel Tons Traded (millions)
(projected)
Coal Group Tons Shipped (millions)
(projected)

16. Shipping Leading market maker of vessel freight
Providing transparency, liquidity and long dated market making to the international freight market
Actively transacting products through EnronOnline
Creating markets in long dated shipping capacity up to 5 years
Traded 44 million vessel tons in 2000
Currently making an online market for 3 liquid markets (1) Colombia to Europe (2) South Africa to Europe (3) US Gulf to Japan

17. LNG
Key Active
Areas &
Contracts
Offices
Creating a global Enron network of LNG supplies, transportation, terminals and markets to maximize optionality
Gaining access to a broader network of terminals
Marketing and optimizing the use of Lakshmi, Hoegh Galleon and Excalibur LNG vessels
Developing online market making network and creating an Asian hub

18. Top Objectives
Generate $60 million in gross margin & $50 million EBIT
Close financing on Jose LNG project/generate significant near-term income via either mark-to-market or other monetization mechanisms
Work out Dabhol LNG supply and shipping problems in a manner that protects Enron, enhances relationships with Oman and Abu Dhabi, and optimizes the value of surplus Dabhol LNG supplies in the Enron system
Position Enron to be a leading player in LNG e-commerce through the development of a LNG trading hub with Petronas affiliates and by extending the scope of Enron online to include LNG
Ensure that the three Enron-controlled LNG carriers (Lakshmi, Hoegh Galleon and Excalibur) are built to contract specifications and delivered on time; optimize the utilization of all three ships
Execute Master Spot/Term Agreements with a portfolio of suppliers that balance/cover our shipping and terminalling positions while at the same time provide maximum optionality to Enron

19. Weather Largest weather market maker in the world
Key Weather
Transaction
Areas
Offices
Active Online
Markets
Largest weather market maker in the world
Transacted in all lower 48 states and 10 countries on 4 continents
Product offerings cover entire developed world
Extensive growth expected by new product and new market development
EnronOnline’s success will continue to be an important platform for growth
Enron is the largest aggregator of positions naturally exposed to cold winters and hot summers via our retail organization
Establish strong holds in Europe, Japan and Australia

20. Weather Vision and Strategy
To be the dominant market presence in all facets of the maturing weather risk management industry including trading (volumes and profit), marketing (noteworthy deals and dealflow), new product development, and research (internal and external).
STRATEGY
Leverage two of Enron’s key advantages, scale and scope, to accomplish our vision.
Our scale advantage stems from the resources Enron has amassed due to the overwhelmingly significant role weather plays in our core energy businesses.
Our scope advantage results from our global presence and the diversity of the backgrounds of our personnel.
Develop new weather driven indices and products that eliminate basis risk and translate weather exposure into “comfort language” for those industries. In doing so, increase the liquidity of the weather market.

21. Enron Freight Markets
Entering domestic intermodal, truckload trucking international container and LTL transportation markets
Offering traditional transportation intermediary services to shippers, carriers, and third-party logistics companies
Creating a liquid trading market for transportation capacity and diesel fuel with standardized contracts and risk management products
Developing technology to reduce costs and improve efficiency of back office processes
Monthly Transactions Growing Dramatically

22. Risk Markets - Insurance
Identify, transform & transfer risks from Enron’s core markets into more efficient insurance market
Create products that both extend Enron’s market making model and creates new market opportunities
Leverage financial capital, core competencies and industry knowledge to create contingent capital distribution/trading channels and solutions
Opportunities for highly structured transactions that require specialized skill sets that can be managed effectively by Enron
Currently marketing in 3 promising areas: contingent calls, upstream and power

23. New GRM Ventures for 2001 2001 YEAR-END GOAL:
GRM will be recognized as the lead provider of non-conventional risk solutions.
Insurance claims trading
Creating insurance forward curves for premium trading
Using an insurance vehicle for lending arbitrage

24. Financial Trading
Key Offices
Financial Trading group provides risk management activities in foreign exchange, interest rates and equities
Manages $4.2 billion (NPV) global portfolio of commodity cash flow
Structured over 1,500 financial transactions in 50 countries this year
Provides global financial risk management products, financial engineering services and 24 hour execution capability
Operates state-of-the-art web-based equity trading system with real-time position management and straight through processing
Exploring origination and eCommerce opportunities in agriculture
Growing Enron’s “Softs” brokerage group in London - 3rd largest on LIFFE exchange

25. Financial Trading Summary of Businesses
Interest Rate & Currency Trading
Manage Drift associated with commodity portfolios
Advise, structure and execute transactions for all Enron entities
Proprietary Trading
Global Product Coverage
Equity Trading
Relative Value (long/short) Equity Fund
Convertible Arbitrage Fund
Sectors: Commodities, Technology, Financial
Agriculture Trading
Origination and Trading
eCommerce
Sectors: Softs, Grains, Meats
Operations and IT Support
Strong staff, infrastructure and controls
Broad capabilities and evolving state-of-the-art systems

26. Equity Trading 2001 Goals Produce $90 million income
Increase Limits and Sectors
Establish London Office - Part II
Staff and Trading
Establish Tokyo Office
Implement Utility Trading Model
Expand Convertible Arbitrage
Implement 3rd/4th Generation Equity Trading System
Web-Based, PDA’s

27. Fundamentals Research
Provide industry and commodity research for EGM units
Build commodity expertise of analysts and associates in order to move them into origination/trading roles
Centralize information and communication across commodity groups around the world
Provide unique content to Enron Online (Research reports and market outlooks)
Analyze cross-market and cross-commodity arbitrage opportunities (LNG vs. NG, Distillates/Fuel Oil vs. NG)