Capital Market Day. Munich, September 6, 2004

Transcription

1 Capital Market Day Munich, September 6, 2004

2 E.ON Energie: Our Business Model Johannes Teyssen, CEO E.ON Energie AG and Member of the Board of E.ON AG for Downstream

3 Agenda Our vision and mission and what we have achieved to date How we generate value for customers and shareholders Optimizing an integrated value chain in Central Europe Our challenge: to create value from power-gas convergence Page 3

4 Agenda Our vision and mission and what we have achieved to date How we generate value for customers and shareholders Optimizing an integrated value chain in Central Europe Our challenge: to create value from power-gas convergence Page 4

5 Our vision and mission The success of the on. top project E.ON will provide competitive solutions for its customers, their lives and businesses stay on top by being an integrated power and gas company combine international strength with local focus apply the best ideas from across the Group Be the world's leading power and gas company Page 5

6 Focus Region Central Europe E.ON E.ON Energie in million approx. 14 million customers 232 TWh power sales 112 TWh gas sales approx. 39,000 employees B NL L CH I D CZ A SK H PL RO BG Adjusted EBIT 2,979 Cash flow 4,077 Sales 19, pro forma figures for the Market Unit Central Europe Page 6

7 Agenda Our vision and mission and what we have achieved to date How we generate value for customers and shareholders Optimizing an integrated value chain in Central Europe Our challenge: to create value from power-gas convergence Page 7

8 We generate value for customers and shareholders E.ON unifies the Group with clear leadership functions at the corporate level: Management across market units Regulatory Affairs Communications Capital Market Brand management Strategy and investment decisions Corporate Center Common risk policies Financial integration HR for top management Page 8

9 We generate value for customers and shareholders Market Unit E.ON Energie optimizes E.ON's market position and integrates the value chain in Central Europe Power and Gas Downstream vis-à-vis Trading and sales policies Corporate Center Asset and investment allocation Quality and cost standards Page 9

10 We generate value for customers and shareholders Business Units of E.ON Energie service customers and manage the assets by Carrying out operational management based on the fundamental guidelines of the Market Unit Corporate Center Focusing and concentrating on specific tasks of the value chain and/or regions Fostering growth in their segment or sub-market Page 10

11 Agenda Our vision and mission and what we have achieved to date How we generate value for customers and shareholders Optimizing an integrated value chain in Central Europe Our challenge: to create value from power-gas convergence Page 11

12 Optimizing an integrated value chain in Central Europe Market management Shared service companies Generation Trading & optimization Retail & distribution, transmission IT nuclear Engineering Facility management hydro fossil & waste incineration ZSE Sales: 19.3 bn attributable capacity: ~ 27,000 MW generation: 137 TWh Trading: ~ 410 TWh Power sales: 232 TWh Gas sales: 112 TWh 1) Numbers as of December 31, Page 12

13 Optimizing an integrated value chain in Central Europe Market Unit Business Units Regulate policies CAPEX/OPEX Benchmarking transmission/ distribution CAPEX + OPEX goals Availability goals Benchmarking generation transfer price Calculate nondiscriminating Fuel purchase Asset optimization grid tariffs Optimize cost Procure position balancing power Sustain security of supply Operate optimal low voltage grid Price strategy Risk policy Benchmarking trading & optimization transfer price Make or buy decision Responsibility for all long positions Sales strategy Back office (IT) Benchmarking sales & retail Sales margin Customer loyalty Customer orientation Provide specific answers for local customer needs Page 13

14 Agenda Our vision and mission and what we have achieved to date How we generate value for customers and shareholders Optimizing an integrated value chain in Central Europe Our challenge: to create value from power-gas convergence Page 14

15 Our challenge: To create value from power-gas convergence Upstream Midstream Downstream Generation Transmission & trading Distribution & sales Power Gas production/ proprietary generation Procurement, transmission, storage & trading Distribution & sales Gas Responsibility lies with E.ON Energie Regional markets Greater integration of power and gas is well in progress Six out of seven RECs in Germany are integrated and offer both power and gas We are on the verge of integration in Hungary Optimization of RECs' gas purchasing together with E.ON Ruhrgas Optimization of power generation through competitive gas supplies to gas-fired power stations New focus on gas as fuel after replacement of power generation assets in Central Europe Page 15