Power Generation Portfolio

Power Generation Portfolio

Håkan Bushke

Senior Vice President Electricity Production

E.ON Capital Market Day Nordic

Stockholm, July 3, 2006

Page 2

Agenda

y Nordic and the Swedish power situation

y

E.ON Sverige generation

y

Generation types and capacities

Historical generation in the Nordic market 1978-2005

0 50 100 150 200 250 300 350 400 450 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 Other renewables Thermal Nuclear Hydro Other Vattenfall Fortum Statkraft E.ON Sverige DONG/Elsam/E2 Pohjolan Voima

Fuel mix

Market shares of generation 2005

Source: Nordel 2005 Source: E.ON

Page 4

Generation in Sweden (2005 = 155 TWh)

Vattenfall 47% E.ON Sverige 23% Fortum 16% Skellefteå Kraft 2% Statkraft 1% Other 11%

TWh

0 10 20 30 40 50 60 70 80 Vattenfall E.ON Sverige Fortum Skellefteå Kraft Statkraft Others

Other

Thermal

Hydro

Nuclear

72

34

28

3.5

0.4

16.4

Market participants

Fuel mix per competitor

Agenda

y

Nordic and the Swedish power situation

y E.ON Sverige generation

y

Generation types and capacities

Page 6

Northern Sweden

56 power plants

11,300 GWh

2,700 MW hydro

Bergslagen

11 power plants

60 GWh

16 MW hydro

Southern Sweden

53 power plants

1,200 GWh

290 MW hydro

OKG - Oskarshamn

E.ON Sverige 54.5 %

2,230 MW nuclear

Ringhals

E.ON Sverige 29.6 %

3,540 MW nuclear

Forsmark

E.ON Sverige 9.8 %

3,160 MW nuclear

Karlshamn

E.ON Sverige 70%

1,000 MW oil

Power generation portfolio E.ON Sverige

Bråvalla

E.ON Sverige 100 %

230 MW oil

Karskär

E.ON Sverige 50 %

172 MW oil

E.ON Sverige – Power generation portfolio development

E.ON Sverige – Total 2005 power assets

10

15

20

25

30

35

40

2005

2007

2009

20

11

20

13

20

15

Other

Thermal

Nuclear

Hydro

E.ON Sverige – planed capacity increase

8%

37%

40%

15%

Hydro

Nuclear

Gas turbine

Other thermal

6,946 MW

TWh

Page 8

Malmö, Öresundsverket (E.ON 100%)

400 MWel, 250 MWth

new build, gas

_{OKG – Oskarshamn (E.ON 54.5%)}

up to 480 MW nuclear upgrade

2008-2012

Ringhals (E.ON 29.6%)

510 MW nuclear upgrade

2005-2011

Forsmark (E.ON 54.5%)

540 MW nuclear upgrade programs

2004 - 2010

Our generation portfolio is geared for significant growth in

nuclear, gas-fired and wind capacity

Utgrunden, Kårehamn, Midsjöbanken, other

1

up to 1.000 MW new build offshore wind

1 Project in planning stage.

Agenda

y

Nordic and the Swedish power situation

y

E.ON Sverige generation

y Generation types and capacities

Page 10

OKG

Owner:

E.ON Kärnkraft Sverige 54.5 %

Fortum kraft 45.5 %

Net capacity:

O1

467 MW

O2

602 MW

O3

1 160 MW

Nuclear power in Sweden

Ringhals

Owner:

Vattenfall 70.4 %

E.ON Kärnkraft Sverige 29.6 %

Net capacity:

R1

846 MW

R2

867 MW

R3

917 MW

R4

908 MW

Forsmark

Owner:

Vattenfall 66 %

Mellansvensk Kraftgrupp 25.5 %

E.ON Kärnkraft Sverige 8.5 %

Net capacity:

F1

1 011 MW

F2

951 MW

F3

1 190 MW

1

1

2

3

2

3

Main projects:

•Life time extension to 60 years

•Capacity upgrade

•New operational safety rules

•New site protection rules

Nuclear power generation

Plant

Reactor

Start year

Effect 2006

Effect 2012

E.ON share

Oskarshamn

1

1972

467

467

2

1974

602

812

3

1986

1,160

1,400

Total

2,229

2,679

54.5%

Ringhals

1

1976

846

859

2

1975

867

867

3

1981

917

1.120

4

1983

908

1.140

Total

3,538

3,986

29.6%

Forsmark

1

1980

1,011

1,130

2

1981

951

1,130

3

1985

1,190

1,360

Total

3,152

3,620

9.8%

Total

8,919

10,285

Page 12

Opinions on nuclear in Sweden – November 2005

Should we:

Phase out nuclear power production although not

necessary for safety reasons?

Use nuclear power until the present reactors do

need to be closed on safety or cost grounds?

Continue with nuclear power production and

replace existing ones when they have reached the

ends of their lives?

Develop nuclear power production and build new

and more reactors if necessary?

Unsure, don't know.

What is your personal view of the use of nuclear

power in Sweden?

20%

24%

38%

_15%

3%

Use

Continue

Phase out

Develop

Unsure

Northern Sweden

54 power plants

10,800 GWh

2,800 MW

Bergslagen

8 power plants

50 GWh

11 MW

Southern Sweden

53 power plants

1,200 GWh

290 MW

Hydroelectric power – E.ON Sverige

Page 14

Hydroelectric power – today and tomorrow

•

Strict geographic divisions

•

Separate systems

•

Partly separate working methods

Two areas – Separate Control Centers

Future Goal

•

One system

Hydroelectric power - reservoir security

Reservoir security is primarily about preventing the emergence of an uncontrolled outflow

of water from the reservoirs that might damage the surroundings.

Reservoir security work is systematic preventional work to reduce the probability and

reduce the consequences of such an uncontrolled outflow.

Security projects in progress

y

Administrative work

y

Consequence classification of all plants, to be finished by 2008

y

Safety manuals for all plants

y

Contingency plans

y

Make instructions for operation, supervision and maintenance

Page 16

E.ON Sverige wind power plants 2006

Our Swedish plants:

y

27 wind mills

y

Installed capacity: 17 MW

y

Power generation: 38 GWh

Our Danish activity: 20% of Nysted Havmöllepark

y

72 wind mills

y

Installed capacity: 165 MW

y

Power generation: 595 GWh

Existing wind mills

•

Take an active part in the growth of wind power in Denmark, Norway and Sweden, both on shore and

off shore

•

Analyze opportunities for the Baltic region during 2006

E.ON Nordics long term wind power growth potential (2,200 MW)

Wind power strategic direction

•

Midsjöbanken,

up to 1000 MW

•

Kårehamn, 50 MW

•

Unspecified offshore

y

Utgrunden II, 90 MW

Sweden

•

Onshore 100-200 MW

y

Unspecified offshore

y

Nysted II, 40-80 MW

Denmark

•

Onshore 400-800 MW

Norway

2012-2015

2008-2012

2006-2008

Page 18

Power generating thermal plants

•

Karlshamn

1,000 MW

•

Bråvalla

230 MW

•

Karskär

172 MW

•

Gasturbiner

500 MW

Main focus and projects

•

New power plant in Malmö 400 MW

_e

and 250 MW heat

•

Transition to use renewables and minimizing CO2

emissions

•

It is important to start conversion into BIOGAS and CO

₂

separation and storage

Karlshamn

E.ON Sverige 70%

1,000 MW oil

Bråvalla

E.ON Sverige 100%

230 MW oil

Gasturbiner

E.ON Sverige 100%

500 MW oil

Karskär

E.ON Sverige 50%

172MW oil

CHP in Malmö in planning stage

Technology

y

Gas turbine

y

Steam turbine

y

Steam extraction for district heating

Carbon strategy

y

Replaces coal condensing power plants

y

Reduces global carbon dioxide emissions by more than 1 million t/a

Security of supply

y

Adds needed generation capacity to strengthen the power balance in southern Sweden.

y

Security of supply of electricity and heat to the Malmö region.

Page 20

Summary

y

> 20% increase in power generation

y

Life time extensions for nuclear and hydro power

y

Strong program to build-up renewable generation capacity

y

Continued political stability is needed to complete all these programs

y

Roughly € 1.1 billion in investment plan for these projects

This presentation do not constitute an invitation to sell or an offer to buy any securities or a solicitation of any vote or approval. Endesa investors and security holders are urged to read the tender offer prospectus from E.ON regarding the proposed tender offer for Endesa when it becomes available, because it will contain important information. The tender offer prospectus and certain complementary documentation will be filed in Spain with the Spanish Comisión Nacional del Mercado de Valores (the “CNMV”). Likewise, a tender offer statement, which will incorporate the prospectus by reference, will be filed in the United States with the U.S. Securities and Exchange Commission (the “SEC”). Investors and security holders may obtain a free copy of the tender offer prospectus (when it is available) and its complementary documentation in the central offices of E.ON, Endesa, the four Spanish Stock Exchanges, and Santander Investment Bolsa SV SA. The prospectus will also be available on the websites of the CNMV (www.cnmv.es) and E.ON (www.eon.com). Likewise, investors and security holders may obtain a free copy of the U.S. tender offer statement (when it is available) and other documents filed by E.ON with the SEC on the SEC’s web site at www.sec.gov. The tender offer statement and these other documents may also be obtained for free from E.ON, when they become available, by directing a request to E.ON AG, External Communications, phone +49-211-4579-453.

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