Thinking ahead. For the future of energy.

Thinking ahead.
For the future of energy.
Annual Report Part I/II
2009 Company Report

Energy is one of the most important factors in our lives. Energy
issues like climate-friendly generation and efficient consumption
increasingly affect international politics, the global economy, and
our everyday lives. As a leading energy company with significant
technological and financial capabilities, E.ON is committed to being
a driving force in shaping a sustainable energy future.
E.ON drives change but is also prepared to change itself and adapt
to the future. We think ahead. As part of this ongoing process, we
ask ourselves questions. About the relationship between our
company’s size and its responsibilities. About our attractiveness to
employees and investors. About our strategic focus and objectives.
About our company’s organizational setup. The answers to these
questions guide our actions as we strive to achieve a balance
between the three main energy-supply objectives—security, climate
friendliness, and affordability—and thus to shape the future of energy.

Thinking ahead.
For the future of energy.
Annual Report Part II/II
2009 Financial Report
2 CEO‘s Letter
6 Our Company
8 Profile
10 Business Areas
12 Corporate Culture
14 Responsibility
16 New Technologies
20 The Year in Review
22 Our Team
24 Board of Management
26 Supervisory Board
27 Employees
30 Our Investors
32 An Overview
33 Finance Strategy
34 E.ON Stock
38 E.ON Bonds
40 Our Strategy
42 Key Beliefs
43 Main Opportunities
45 Investment Plan
Financial Report
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance
Supervisory Board and Board of Management
Tables and Explanations
You can download our Financial Report,
or order the print version,
at eon.com/brochures.
46 Our Structure
48 An Overview
50 Central Europe Market Unit
54 Pan-European Gas Market Unit
58 U.K. Market Unit
62 Nordic Market Unit
66 U.S. Midwest Market Unit
70 Energy Trading Market Unit
75 New Markets
76 Climate & Renewables Market Unit
80 Russia Market Unit
84 Italy Market Unit
88 Spain Market Unit
92 Imprint
93 Financial Calendar

2 CEO‘s Letter
The global economy hit bottom in 2009. The recession made things hard for
m any industries, including ours. It led to declines—in some case significant
declines—in energy consumption. But we stayed on course in 2009.
Just like we said we would. Our 2009 adjusted EBT of €9.6 billion was at
the high prior-year level. As for adjusted net income, the slight upward
correction we made to our forecast was right on target: at €5.3 billion,
our 2009 adjusted net income was just 5 percent under the high prior-year
figure. At the 2010 Annual Shareholders Meeting, we’ll therefore propose
that the cash dividend be kept stable at €1.50 per share, resulting in a
payout ratio of 54 percent of adjusted net income. This means that we’re
also staying the course with our dividend policy, which is to pay out 50 to
60 percent of our adjusted net income.
We achieved these solid results primarily because we began—before the
onset of the global financial and economic crisis—to enhance our company’s
efficiency through a Group-wide program called PerformtoWin. By 2011,
we expect it to deliver €1.5 billion in earnings improvements. The first set
of initiatives is already having a positive impact on our earnings. Along
with enhancing our efficiency, we’re investing in long-term growth and
optimizing our portfolio so that we stay on our successful course even in
difficult times.
In 2009, we sold our ultrahigh-voltage transmission system and sold or
swapped about 5 GW of generation capacity in Germany. This largely
fulfilled the commitments we’d made to the European Commission. In
addition, we sold most of Thüga, a holding company with stakes in approximately
100 municipal utilities in Germany, for a very good price; Thüga
assets not included in the deal will be sold separately. Through these
transactions, we significantly reduced our position at all stages of the
value chain in Germany, gave important impetus to competition, and at
the same time established new positions in other European markets.

Streamlining our portfolio by selling our ultrahigh-voltage transmission
system, generation capacity, and Thüga has already delivered about
€6 billion in cash. This puts us well on the way to achieving our announced
objective of generating more than €10 billion in cash through asset sales
by the end of 2010. These funds will enhance our investment and financial
strength, which will play a decisive role in enabling us to start strong when
the recession ends.
Our investment strategy is guided by a clear vision of tomorrow’s energy
world. We believe that technological advances and a broad public consensus
will enable the energy industry to undergo a fundamental transformation.
Energy policymakers and the energy industry share the responsibility
of ensuring that this transformation is gradual and stable so that
consumers will continue to have a reliable, affordable supply of energy.
E.ON was one of the first to demonstrate its commitment to climate protection.
In May 2007, we pledged to halve our generation fleet’s specific
carbon dioxide emissions by 2030. At the 2009 Climate Change Conference
in Copenhagen, we stated that if a robust treaty was reached, E.ON
would be prepared to achieve its 2030 target ten years earlier. No such treaty
was signed. We’ll therefore follow the negotiations in 2010 closely and
continue to advocate the stable regulatory framework that’s necessary
for us to make long-term investments in low-carbon technologies. As a
member of Combat Climate Change, we support its Copenhagen Scorecard,
which calls for at least a 50-percent reduction in global carbon emissions
by 2050 compared with 1990. Getting there will require ambitious mediumterm
targets for 2020 and 2030 that are international in scope and include
all industrialized countries. Under such a framework, we’d be able
to halve our generation fleet’s specific carbon dioxide emissions by as
early as 2020.
CEO‘s Letter
3

4
CEO‘s Letter
Smart grids—at the transmission and distribution level—will play a central
role in tomorrow’s energy system. We all know that today’s grids weren’t
designed for increasingly decentralized, renewable generation technologies.
Grids need to be upgraded and expanded. Without smart grids and
high-capacity energy storage systems, wind and solar power can’t serve
as sources of baseload electricity, distributed generation technologies
can’t be properly integrated, smart meters can’t be effectively utilized,
and battery-powered cars can’t be used as mobile storage devices. In short,
smart grids are the key to the energy future. A future in which energy
efficiency will be our most important energy source.
E.ON has set up company-wide working groups for three key energy technologies
of the future: electromobility, smart energy technologies, and
energy efficiency. We’re working hard to find solutions to the many unresolved
issues in these areas and will help make the necessary investments
when the regulatory environment enables us to justify such a decision.
This applies in particular to network investments. To expand and upgrade
networks, we need a regulatory framework that’s part of a comprehensive
energy strategy that gives the right investment incentives. Only this
kind of framework will enable companies like E.ON to invest systematically
in further growth.
Our investments focus on three main areas: power generation (which
already accounts for more than half of our EBIT), infrastructure, and upstream
natural gas. Investments in generation—in conventional and in
renewable technologies—are investments in the future. All indicators
suggest that electricity demand will increase slightly in the years ahead
and that Europe will have to add more generation capacity beginning in
2015 at the latest. That’s why we’re investing in technologically advanced
coal-fired and gas-fired generating units at locations across Europe. The
current focus of our renewables investments is on expanding our wind
capacity. In the last two years, we’ve achieved unprecedented growth in
wind power and have already become one of the world’s largest windpower
producers. In 2009, we established solar energy as our second key

enewables technology. Expanding our upstream gas portfolio is another
focus of our investment strategy. Right now, the earnings situation in the
gas business is difficult and only slowly starting to improve. We believe
this is temporary. Forecasts call for global gas consumption to increase by
50 percent by 2030 to 4.3 to 4.8 trillion cubic meters per year. We’re working
with producer countries to adjust our long-term supply contracts to the
current demand situation. But with greater demand around the corner,
long-term contracts will remain just as important for ensuring supply security
as expanding our own production portfolio.
Together with the streamlining of our portfolio and our current projects
to enhance efficiency, these investments will help create a solid platform
from which E.ON can start off strong when the current economic crisis
ends. So that E.ON will remain a profitable and solid investment for the
long term.
The E.ON Supervisory Board appointed Johannes Teyssen to be Chairman
of the E.ON Board of Management and CEO effective May 1, 2010. Johannes
has been our Chief Operating Officer for the last two years. I’m certain
that under his skilled leadership, E.ON will move steadily forward on its
highly successful course. I wish him, his management team, and our employees
all the best as they continue to think ahead and shape tomorrow’s
energy world.
Sincerely yours,
Dr. Wulf H. Bernotat
CEO‘s Letter
5

E.ON is one of the world’s largest investor-owned
power and gas companies. This fact alone puts us in
an important position—and in the public spotlight.
We have a clear obligation to be socially responsible,
an obligation that increases with the size of our company.
Being a large company also gives us a greater
scope for action which we actively make use of in all
our business areas and with all our stakeholders.
Some of the ways we meet our social responsibilities
are by conserving resources, by continually enhancing
occupational safety for our employees, by making
our prices fair and transparent for our customers, and
by being a good neighbor in the communities near
our facilities.
Our main responsibility is to ensure that tomorrow’s
energy supply is secure and efficient. We know a lot
about producing energy efficiently, and we seek opportunities
to enable decision-making processes to benefit
from our extensive expertise. E.ON supports energy
policies that maintain a balance between climate
protection, affordability, and supply security. Maintaining
this balance is the only way we’ll maintain
the public’s support and trust, both of which we
need in order to build tomorrow’s sustainable energy
supply system. It’s also the only way the energy industry
can undergo the necessary transformation process to
make this future a reality. We’re actively meeting this
responsibility.
7
Our Company

8 Our Company Profile
Who we are. An overview.
We make, move, and market energy. We’re building on our broad international
footprint, our deep experience, and our commitment to innovation to help shape
tomorrow’s energy world. Resolutely and responsibly.
E.ON Group financial highlights (€ in millions)
Our business
We operate along the entire value chain
in power and gas. Our objective is to provide
our customers with a secure, affordable,
and climate-friendly supply of energy.
We combine a broad international footprint
with local expertise and share
promising ideas and best practices across
our organization.
In areas where we can seize opportunities
created by the ongoing integration
of Europe’s energy markets—primarily
power generation, energy trading, and gas
supply—we run our business on a European
scale. These strengths enable us to
create superior value for our shareholders
and excellent prospects for our customers
and employees.
E.ON is one of the world’s largest investor-owned power
and gas companies. Our operations extend across Europe,
Russia, and North America. Our more than 88,000 employees
generated just under €82 billion in sales in 2009.
2009 2008 +/- %
Electricity sales (billion kWh) 815.9 597.4 +37
Gas sales (billion kWh) 1,217.7 1,208.6 +1
Sales 81,817 86,753 -6
Adjusted EBITDA 13,526 13,385 +1
Adjusted EBIT 9,646 9,878 -2
Adjusted net income 5,328 5,597 -5
Cash-effective investments 9,200 18,406 -50
Employees (at year-end) 88,227 93,538 -6
Our roots
E.ON was created by the merger of two
large German conglomerates—VEBA and
VIAG—in June 2000. After the merger, E.ON
began focusing solely on its power and
gas business. Energy isn’t just our present
and our future. It’s also where we come
from: we’ve been generating and supplying
electricity since the 1920s.
Our corporate structure
E.ON AG, Düsseldorf, is the E.ON Group’s
Corporate Center. Its main tasks are to
chart E.ON’s strategic course and to
steer the overall business across all our
markets. Our business is segmented into
ten market units, which have a geographic
or functional focus. The lead company of
each market unit is responsible for managing
and coordinating operations across
its target market. Business units conduct
day-to-day operations at a national or
regional level. You’ll find more detailed
information about our market units starting
on page 46.

U.K. MU
E.ON UK plc
Coventry
U.S. Midwest MU
E.ON U.S. LLC
Louisville
Climate & Renewables MU
E.ON Climate & Renewables GmbH
Düsseldorf
Spain MU
E.ON España S.L.
Madrid
Our objectives
Integrated, competitive, nondiscriminatory,
transparent, and climate-friendly.
That’s the European Commission’s vision
for the EU’s internal energy market. The
Commission aims to use climate-protection
mechanisms like emissions trading to
fundamentally change the makeup of
Europe’s generation fleet. They’re good
ideas. And E.ON supports them. Because
we’re convinced that the systematic
integration of Europe’s energy markets,
effective competition along the entire
value chain, and lasting climate protection
are good for everyone.
E.ON already has one of the most
balanced and flexible generation mixes in
Europe. We have the capability to optimize
our operations across our markets and
Energy Trading MU
E.ON Energy Trading SE
Düsseldorf
Corporate Center
E.ON AG
Düsseldorf
Italy MU
E.ON Italia S.p.A.
Milan
leverage synergies from this broad European
market position. Going forward, we
intend to systematically enhance our
generation fleet’s efficiency and reduce
its carbon emissions.
We also intend to further strengthen
our position in European gas supply. By
acquiring a stake in one of the world’s
largest gas fields (Yuzhno Russkoye in
Siberia) and by boosting production at
our fields in the North Sea (like Skarv-Idun
in Norway), we’re already close to our
ambitious objective of obtaining 10 billion
cubic meters of natural gas production
annually from our own assets.
Pan-European Gas MU
E.ON Ruhrgas AG
Essen
Nordic MU
E.ON Sverige AB
Malmö
Central Europe MU
E.ON Energie AG
Munich
Let’s talk—about the future of energy
Rising global consumption, rising global
temperatures, and declining fossil reserves.
Our industry faces huge challenges. To meet
these challenges we need to fundamentally
change the energy supply system. To do
that, we need to think ahead. We’ve defined
clear positions on the key role of renewables,
on enhancing energy efficiency, and on a
climate-friendly energy mix for the future.
We don’t claim to have all the answers. That’s
why we invite you to join us and others in
an ongoing dialog. Talking with other people
and organizations gives us the chance to
try out our ideas and refine them.
Contact us:
energyfuture@eon.com
Profile Our Company
9
Russia MU
E.ON Russia Power
Moscow
MU = market unit

10
Our Company Business Areas
Power and gas.
A broad presence,
a balanced mix.
Our business combines presence and balance along the entire value chain in power and
gas. We have one of the broadest geographic footprints in the industry plus one of the
most balanced fuel mixes in power and one of the most balanced supply portfolios in gas.
These strengths make us superbly positioned to meet the challenges of our markets and
help shape the future of energy supply.
Our business is power and gas.

Making, moving, and marketing energy.
Our positions along the value chain.
Upstream
Midstream
Downstream
Power Gas
Generation
• 73 GW of installed capacity,
320 billion kWh of generation
• Balanced fuel mix
• Objective: Reduction of CO 2 /kWh by 50% by 2030
Transmission 1
• 33,000 km of transmission networks,
110 billion kWh of power transmission
Trading
• 1,240 billion kWh trading volume
Distribution
• Roughly 1 million km distribution system
Retail/Sales
• 816 billion kWh in electricity sales
Power
We have 73 gigawatts (“GW”) of generation capacity. We’re one of
the world’s most geographically diversified power producers,
with major asset positions in Germany, the U.K., Sweden, Russia,
the U.S., Italy, Spain, France, and the Benelux countries. We also
have one of the broadest and most balanced fuel mixes in the
industry. At year-end 2009, 38 percent of our capacity was gas-and
oil-fired, 34 percent coal-fired, 15 percent nuclear, 7 percent hydro,
and 6 percent wind and other renewables.
Our generation fleet—one third of which already consists of
zero-emission technologies—is becoming climate-friendlier all
the time. 2 We aim to halve our specific carbon dioxide emissions
by 2030. To get there, we’re rapidly expanding our renewables
portfolio (we added 1 GW of renewables capacity in 2009
alone), building the world’s most climate-friendly fossil-fueled
power plants, preparing to extend the operating lives of our nuclear
power stations in Germany, and participating in projects to
build new nuclear plants in several European countries.
On the infrastructure side, we operate a high-voltage transmission
system in Germany (we sold our ultrahigh-voltage transmission
system as part of our commitment to the European
Commission, effective December 31, 2009). By buying and selling
power and other commodities in a competitive marketplace, we
play a vital role in helping to ensure fair prices and secure longterm
energy supplies for our customers across Europe. Our
regional utilities in Germany, the U.K., Sweden, Spain, Eastern
Europe, and the Midwestern United States operate distribution
systems that deliver electricity safely and reliably to homes
and businesses.
In the power sales business, our national and regional retail
organizations offer a wide range of electricity products and
personalized service to about 30 million industrial, commercial,
residential, and municipal customers across Europe.
2 As used in this report, the terms zero carbon and zero emission refer to power generation
operations only, not to a generating unit‘s entire lifecycle.
Business Areas Our Company
Exploration and production
• Today: 1.4 bcm
• Long-term objective: 10 bcm of gas per year from own production
assets (Yuzhno Russkoye and Skarv-Idun will provide 7.5 bcm)
Supply (including LNG)
• Balanced portfolio with six major sources of supply
Transport and storage
• 11,600 km of transport pipelines, 620 billion kWh of gas transport
• 10 bcm of storage capacity
Trading
• 1,498 billion kWh trading volume
Distribution
• Roughly 100,000 km distribution system
Retail/Sales
• 1,218 billion kWh in gas sales
Gas
E.ON is one of Europe’s largest gas companies and a pillar of gas
supply security in Europe.
Our exploration and production (“E&P”) business has its geographical
focus in the North Sea and Siberia; both are E&P regions
with considerable growth potential. On the basis of the investments
we’ve alredy made, we’ll achieve our strategic long-term
objective of producing 10 billion cubic meters (“bcm”) of gas
annually from our own assets by 2012.
The backbone of our current gas supply is a geographically
diverse portfolio of long-term supply contracts with key producing
countries. In 2009, we procured 624.1 billion kWh of gas under
these contracts. Gas is transported from its production region to
us via long-distance pipelines.
We intend to supplement our gas supply with an increasing
share of liquefied natural gas (“LNG”), using a blend of spot
purchases and long-term supply contracts. As part of this effort,
we’re exploring opportunities to develop selected LNG projects
in West Africa and the Middle East. We’re also involved in a
number of regasification terminals in Northwestern and Southern
Europe so that in the future we’ll be capable of supplying all key
European markets with LNG.
Our energy trading arm, which buys and sells gas and similar
commodities in more than 40 countries around the world and at
all of Europe’s major energy exchanges, is a key link between
E.ON and the world’s wholesale energy markets.
11
1 Sold effective December 31, 2009.

12 Our Company Corporate Culture
Pulling on the same rope is teamwork.
Feeling the same pride
while you do it is shared identity.
Corporate culture is about sharing values. That’s easier said than
done in a company with over 88,000 employees in more than
30 countries. That’s why we’ve defined shared values and behaviors.
Agreeing on values is important. It lays the foundation for us to
work together successfully across organizational and national
boundaries. It also builds trust—our trust in each other and other
people’s trust in our company. On the next page are some of the ways
we foster an employee- and performance-oriented culture at E.ON:
from our newest employees (those who join us as apprentices
and as employees of new E.ON companies) to those who’ve been
with us the longest.

Fostering values from the start
From the start, we familiarize our more
than 2,000 apprentices in Germany with our
values and their significance. It’s working.
Our apprentices have demonstrated their
initiative and dedication by developing
a special activity module that takes an
entertaining approach to conveying general
knowledge about E.ON, our organizational
setup, our various businesses, and
our corporate culture. At the same time, it
fosters teamwork across organizational
boundaries and encourages apprentices to
develop their own joint projects. Developed
by apprentices, the module is used to
introduce E.ON to new apprentices. Behind
it all is the objective of motivating them to
actively embrace our values and behaviors.
Integrating new employees
Integrating new companies into the E.ON
corporate culture presents management
and employees with special challenges.
Promoting cultural exchange is particularly
important during the integration phase.
To support our employees during this
process, we’ve put together a toolbox of
integration materials consisting of slide
presentations, videos, and communications
modules. Managers can draw on these
materials selectively. The purpose of the
toolbox is to familiarize all new employees
with the E.ON values and behaviors so
that they can put them into action in
the workplace. The toolbox does more
than convey our values in the abstract.
Activities like an interactive workshop give
employees the chance to experience
teamwork in practice.
Our motto is OneE.ON
OneE.ON Day, which has become an integral
part of our corporate culture, is a
way we promote a sense of togetherness.
One day a year, employees and managers
at all of our offices and facilities come
together to talk about issues relevant to
our company. In 2009, OneE.ON Day offered
an opportunity to address a key issue
in our current situation: which E.ON
values and behaviors are important during
times of change? Events focusing on
issues like social responsibility and teamwork
across organizational boundaries
also reflected core E.ON values.
Our Values
• Integrity
We do what we say.
• Openness
We say what we think.
• Trust and Mutual Respect
We treat others as we would like to be
treated.
• Courage
We do and say what we believe is
right.
• Social Responsibility
We act in the long-term interest of society.
Our Behaviors
• Customer Orientation
• Drive for Excellent Performance
• Change Initiation
• Teamwork
• Leadership
• Diversity and Development
Listening to our employees
Openness is another core E.ON value.
That’s why an important component of
our corporate culture is our employee
opinion survey (“EOS”). The EOS, which
The shape of corporate identity: employees formed the E.ON logo, creating a winning entry
in a company photo competition.
Corporate Culture Our Company
13
has been conducted at regular intervals
since 2004, is an effective management
tool and well accepted by management
and employees alike. The most recent EOS,
a sample survey conducted in fall 2009,
had a very good Group-wide participation
rate of about 78 percent.
We take negative feedback seriously,
carefully analyze its causes, and
implement targeted improvement
measures across our company.
The results of the 2009 EOS show that
our employees’ dedication continues to be
high, in absolute terms and especially
compared with other companies. A clear
majority of respondents said they put our
core values and behaviors into practice in
the workplace. Their responses about their
work environment and the cooperation
within their team also paint a generally
positive picture and surpass comparable
results at other companies. But our
employees also provided helpful criticism.
For example, they said that we could do
a better job of organizing change processes
and telling them about the company’s
objectives. We take this feedback
seriously, carefully analyze its causes, and
implement targeted improvement measures
in all parts and at all levels of our
company.
Want to find out more?
eon.com/corporateculture

14 Our Company Responsibility
Without
people’s trust,
we can’t
do our job.
Responsible procurement—along our entire supply chain
We use a lot of resources. To fuel our power plants, to maintain our assets, and to give our
over 88,000 employees the tools they need—from hard hats to note pads—to do their jobs.
Our responsibility begins long before these resources arrive at our facilities. It begins in
the countries and communities where they’re produced. To meet this truly global responsibility,
we’ve instituted a Group-wide responsible procurement policy (“RPP”). It helps us to
ensure that the uranium we procure is extracted and enriched under safe conditions and
that the coal we buy is mined with minimum of environmental impact and without harming
the health of mine employees. In 2009, we defined a new responsible-biomass policy
under which we’ll only use certified products and products that don’t endanger food security
in other parts of the world. More generally, we make every effort to ensure that all the
products we source—no matter where they’re from—are produced in accordance with our
RPP’s minimum standards for human rights, workers’ rights, environmental protection, and
business ethics.
To produce and market energy we need resources.
Material resources like fuel and capital. And nonmaterial
resources like trust. The trust of the people
who live near our facilities. And also the trust of
our customers, our employees, the companies we
do business with, the general public, policymakers,
and government agencies. We can only earn this
trust by taking our stakeholders’ expectations into
account as we meet our significant economic,
environmental, and social responsibilities. We do
this implementing appropriate projects at our
facilities and offices.
The challenge for the upcoming decade is for our
industry to improve its credibility and engender
greater trust. They are the prerequisites for us to be
able to produce and distribute energy affordably,
safely, and with a minimum of environmental
impact. As one of the world’s largest energy companies,
E.ON has a responsibility—and an interest—
in playing a big role in earning and retaining the
public’s trust.
The energy world is undergoing profound
change. It needs to. Because the challenges it faces
are of global magnitude. First, people around the
world are consuming more and more energy.
Second, the fossil resources commonly used to
meet this demand are finite and carbon-intensive.
Third, the use of fossil fuels is causing the climate
to change, and all of us—people, companies, and
governments—need to take action to slow this
process and ultimately stop it.
This transformation process will involve huge
economic, environmental, and social challenges.
So huge, in fact, that no single company or government
can deliver the necessary solutions. These
challenges will require new partnerships, significant
changes in consumer behavior, and a magnitude
and speed of technological innovation unprecedented
in the energy industry.

E.ON is determined to play a leadership role in
this transition and is actively meeting these global
challenges by:
• setting tough environmental targets and
halving, by 2030, our generation fleet’s carbon
intensity compared with 1990; in 2009 we
achieved a 1.6 percent year-on-year reduction
to 0.476 metric tons of CO 2 per MWh
• expanding renewables to about one third of
our total generation capacity by 2030 and
working to make carbon capture and storage
commercially viable by 2020
• building more efficient fossil-fueled power
plants, thereby reducing our climate impact
compared with older, less efficient plants
• helping our customers use energy more wisely
through a wide range of products, services, and
reward programs
• devoting €17 million to university research
into key energy technologies in 2009
• investing in LNG and natural gas to safeguard
supply and to provide a lower-carbon alternative
to oil and coal
• engaging in an ongoing dialog with non-governmental
organizations and other stakeholders
so that we can continually reevaluate and refine
our ideas and initiatives.
E.ON Chair in C orporate Responsibility (CR): Instilling
responsible leadership in tomorrow’s managers
CR and sustainability are mandatory parts of the MBA
curriculum at an increasing number of business
schools around the world. The trend is significant, from
one third of business schools in 2001 to over two
thirds in 2009. In 2009, E.ON endowed the E.ON Chair
in Corporate Responsibility at the European School of
Management and Technology in Berlin. The endowed
chair, which is held by Prof. C. B. Bhattachary, is a reflection
of our support for research into how CR can
add value to businesses and society as a whole and for
teaching the resulting insights to tomorrow’s managers.
Our commitment to exemplary corporate responsibility
(“CR”) is also about meeting challenges on a
less global scale. For example, we promote early
childhood education on responsible energy use and
environmental protection through our Energy for
Children program. We established the Environmental
Champions program to support and encourage
our employees to use resources efficiently and be
more environmentally aware. In addition, we work
to protect biodiversity at and near our facilities,
foster a safety and health culture across our company,
encourage our employees to volunteer in their
community, and provide assistance to our vulnerable
customers.
From global to local, we monitor our progress
in these areas using key performance indicators and
report on our progress regularly. Our CR reporting
is conducted in accordance with guidelines laid
down by the Global Reporting Initiative and the
United Nations’ Global Compact. Key reporting data
are independently verified and audited.
Want to find out more?
eon.com/responsibility
Responsibility Our Company
15

16 Our Company New Technologies
Supporting the development of
tomorrow’s energy technologies.
Today.
As an energy company, E.ON has a responsibility
to help deliver the technological
advances that will enable renewables to be
commercially viable on an industrial scale.
We’re already a leading renewables player.
And, in projects around the world, we’re
investing billions of euros in promising
technologies, mainly in wind and solar
power, but also in biomass and biomethane.
At E.ON, we take a two-pronged
approach to research and development
(“R&D”). First, we continually optimize our
existing facilities and their operating
processes. Second, we develop the key
energy technologies of tomorrow that have
the potential to significantly enhance resource
conservation and climate protection.
Thanks to our broad international footprint,
our R&D network extends across
countries and continents, enabling us to
draw on a broad range of expertise and
experience. This network ensures that
innovative, low-carbon solutions are found,
shared, and implemented as quickly as
possible across our company.
In addition, E.ON provides direct financial
support to more than ten universities.
Our flagship project is the E.ON Energy
Research Center, a public-private
Laboratory researchers: E.ON provides financial support to more than ten universities.
partnership with RWTH Aachen University.
We’re funding the E.ON Energy Research
Center with €40 million over a ten-year
period. In 2009, faculty and staff of the
center’s five institutes moved into its first
new building.
E.ON En ergy Research Center: Taking a
holistic approach to complex issues
Founded in 2006, the E.ON Energy Research
Center is a public-private partnership between
E.ON and RWTH Aachen University.
Its mission is to foster major technological
and conceptual breakthroughs that promote
an efficient, sustainable, and climate-friendly
energy supply. Its approach is holistic: instead
of looking for solutions to isolated
technical prob lems, it designs comprehensive,
interdisciplinary solutions that address all
aspects of complex energy issues. It has
five institutes: Automation of Complex Power
Systems, Energy-Efficient Buildings and
Indoor Climates, Future Energy Consumer
Needs and Behavior, Applied Geophysics and
Geothermal Energy, and Power Generation
and Storage Systems.
Biomethane production plant in Germany:
E.ON invests in innovative technologies.

Focusing on the most promising
options: our innovate.on initiative
There’s no silver bullet to stop climate
change. No single technology is enough.
Our Group-wide innovation effort is aimed
at finding the best technology options
and taking them from the test lab to
commercial-scale applications, primarily
in ten areas:
• high-efficiency coal-fired generation
• carbon capture and storage
• next-generation nuclear power
• offshore wind
• biomethane
• concentrated solar power
• smart grids
• micro combined heat and power
• natural gas heat pumps
• electromobility.
CCS and offshore wind were particularly
important areas for demonstration projects
in 2009.
Getting to zero
Carbon capture and storage (“CCS”)
CCS could reduce the carbon emissions
of fossil-fueled power generation to
nearly zero. That’s why we’re working
CCS equipment at Staudinger power station in Germany:
E.ON is working to make CCS commercially viable by 2020.
Carbon capture and storage: three ways to
make coal climate-friendlier
Carbon-capture technology already exists and
has long been used in the chemicals industry.
Our industry’s challenge is to develop capture
techniques that work well for large-scale
power generation where the amount of CO 2
to be captured is very big. There are three
main techniques:
• oxyfuel: coal is burned in pure oxygen (instead
of air), resulting in an exhaust stream
of almost pure CO 2 and water
hard to make CCS commercially viable by
2020. We’re actively involved in the R&D
of several capture methods, particularly
post-combustion capture, which could be
retrofitted onto existing power plants.
Here are some of our 2009 CCS highlights:
• In February, E.ON Benelux and
Rotterdam Climate Initiative agreed
to conduct a joint CCS feasibility study
for the new 1.1 GW high-efficiency
coal-fired generating unit under
construction at Maasvlakte power
station in Rotterdam harbor.
• In May, E.ON Gas Storage filed for
permission to conduct a five-year
geological survey of the Weser river
valley in northwest Germany to
determine whether the area is
suitable for an underground carbon
storage facility.
• In July, we applied for financial support
under the European Economic Program
for Recovery for the demonstration
phase of two post-combustion-capture
projects: Kingsnorth in the U.K. and
Maasvlakte in the Netherlands.
New Technologies Our Company
• pre-combustion capture: coal is first gasified;
the CO 2 is removed from this gas, leaving
clean-burning hydrogen as a fuel
• post-combustion capture: chemical solvents
are used to scrub CO 2 from a power plant’s
exhaust stream.
All three techniques have pros and cons.
We’re focusing on post-combustion capture
because—just like any other emission-abatement
equipment—it can be retrofitted onto
existing power stations and thus offers greater
potential for climate protection.
17
• In September, E.ON Kraftwerke began
16 months of operational testing of
Siemens equipment that will capture
CO 2 from a portion of the exhaust
stream of a coal-fired unit at Staudinger
power station in central Germany.
• In September, the U.S. Department of
Energy agreed to continue funding the
design phase of FutureGen, a 275 MW
coal-fired plant to be equipped with
pre-combustion capture. E.ON U.S. is a
member of the FutureGen Industrial
Alliance. Construction of the plant
could now start in 2010.
Want to find out more?
eon.com/innovation
eon.com/ccs
Pilot project to test battery-powered cars:
an E.ON recharging station in Munich.

18
Our Company New Technologies
Alpha ventus: a pilot project that‘s providing us with valuable experience
for future deepwater wind farms.
Where there’s a wind,
there’s a way
Offshore wind projects
Despite the challenges (particularly in
deep water), the future of European wind
power is offshore: the winds are steadier,
and there’s lots of open space. Our 2009
highlights:
• In January, an E.ON-led consortium
called Helm Wind received funding
from the Energy Technology Institute,
a public-private partnership between
energy companies and the U.K.
government. Helm Wind’s mission is
to produce a design and feasibility
study for an optimized next-generation
offshore wind farm.
• In August, alpha ventus, Germany’s
first offshore wind farm, began
delivering green electricity to the
mainland. The 60 MW farm (a project
by E.ON, Vattenfall, and EWE) is sited
in the North Sea 45 km off the Frisian
Islands. A pioneering technical achievement,
alpha ventus is a valuable
learning plat form for future deepwater
wind farms. We have numerous
deepwater projects at various stages
of development in the North Sea and
the Baltic Sea.

Beyond CCS and offshore wind, we also
made progress with other innovative
technologies in 2009:
Joint pilot project with BMW
Low-carbon mobility
In July, E.ON Energie began a 12-month
project in Munich to test 15 BMW batterypowered
Minis and a recharging station
that’s powered by zero-carbon hydroelectricity.
The purpose is to learn more
about the auto world of the future; for
example, the kind of recharging infrastructure
that would be necessary to handle the
1 million electric cars Germany is expected
to have by 2020.
Biogas fuel cell at brewery
Distributed generation
Beer is carbonated. But a joint project by
MTU Onsite Energy and E.ON is demonstrating
that you can reduce carbon emissions
while brewing it. A brewery in Erding,
Germany, became Europe’s first to be
powered in part by a fuel cell that runs on
biogas derived from brewing by-products.
The fuel cell’s net electric capacity is
214 kW, its thermal capacity 200 kW. It will
prevent the emission of up to 1,200 metric
tons of CO 2 each year.
Biomethane plants open in
Sweden and Germany
Biomethane
Two new E.ON biomethane plants entered
service in Falkenberg (southwest
Sweden) and Einbeck (north-central
Germany). Together, the plants transform
170,000 metric tons of organic material
into 32 million cubic meters of carbonneutral
biomethane annually, enough to
heat 10,000 homes or fuel 30,000 vehicles.
Strategic research agenda
Next-generation nuclear power
In May, the Sustainable Nuclear Energy
Technology Platform (“SNETP”), a Europewide
organization of which E.ON is a
member, defined a strategic research
agenda and implementation plan to ensure
that nuclear power is an essential part of
the low-carbon energy mix of the future.
The agenda covers areas like enhanced
safety, next-generation reactor design,
and new uses for nuclear power such as
process heat and hydrogen production.
Pacesetter in smart technologies
Smart meters
E.ON will install a total of 1.8 million smart
meters as part of a unique European test
program. With smart meters, customers
can monitor their energy use in real time
on the internet and then respond to what
they see. One million smart meters are
already in use in Sweden; 752,000 more
will be installed in Spain by 2014. In early
2009, an entire town in Bavaria was
equipped with more than 5,000 smart
meters. This is just one of the areas that
makes us a European pacesetter for
promising technologies.
E.ON Research A ward: promoting cutting-edge university research
For the second year, in April 2009 the E.ON Research Award was given to outstanding projects from
universities and research institutes from around the world. The 2008 Award—and a total of €6 million
in funding—went to nine innovative energy applications of nanotechnology. The projects range from
advanced photovoltaic cells to high-efficiency heating and cooling systems for buildings. The topic
of the 2009 Award, which will be conferred in 2010, is heat storage for concentrated solar power.
Over a more than 10-year period, E.ON will provide a total of €60 million in grants for research projects
worldwide and €40 million in support for the E.ON Energy Research Center (see textbox on page 16).
In 2009, E.ON provided €17 million of support for current programs in energy-technology research at
universities.
New Technologies Our Company
19

20
Our Company The Year in Review
January
E.ON and RWE found Horizon Nuclear Power, a joint venture to
develop up to 6 GW of new nuclear capacity in the United
Kingdom in order to make the country’s future energy supply
more secure, climate-friendly, and affordable. Horizon begins
operations in November.
February
E.ON and Rotterdam Climate Initiative agree to conduct a joint
study for developing a carbon transport and storage infrastructure
in Rotterdam. Such an infrastructure could be used for CO 2
captured at E.ON’s Maasvlakte power station. In December, the
European Commission announces that it will support the project.
E.ON, a global pacesetter in the development of carbon capture
and storage technology, operates several carbon-capture pilot units
and expects this technology to be commercially viable by 2020.
March
The European Commission’s commitment decision for E.ON to
divest certain generation activities and its ultrahigh-voltage
transmission system in Germany took effect in December 2008.
E.ON’s first step to implement the decision is to sell its stakes in
two coal-fired power stations, Lippendorf and Bexbach, to EnBW.
May
Dr. Wulf H. Bernotat announces at the E.ON Annual Shareholders
Meeting that he does not seek to have his contract as Chairman
of the E.ON Board of Management renewed again. His successor
is appointed at a meeting of the E.ON Supervisory Board on
August 12: Vice Chairman Dr. Johannes Teyssen will become Chairman
and CEO in May 2010.
E.ON, DONG Energy, and Masdar announce that they plan to
invest €2.2 billion to build the world’s largest offshore wind farm,
called London Array, which will be sited in the Thames estuary.
The first phase will have a capacity of 630 MW and is scheduled
to be completed at the end of 2012. When the second phase becomes
operational, London Array will have a total capacity of 1 GW.
More offshore milestones follow. In September, Robin Rigg wind
farm in the Solway Firth in northwest Britain begins exporting
electricity to the mainland. The completed wind farm will have
60 turbines and 180 MW of installed capacity. In November, the
last of 12 turbines is installed at alpha ventus, Germany’s first
offshore wind farm.
2009
June
E.ON, which is expanding solar energy to be the second mainstay
of its renewables business, opens its first solar farm, located in
Le Lauzet in southern France. A few weeks later, E.ON acquires
Conilhac, a photovoltaic farm developer, thereby further enhancing
its expertise in implementing solar projects on an industrial
scale. In November, E.ON successfully enters the concentrated
solar power (“CSP”) segment by forming a joint venture with
Abengoa Solar to build and operate two 50 MW CSP plants in
Andalusia, Spain. CSP uses arrays of mirrors to concentrate
sunlight onto an absorber to produce steam that turns a turbine
connected to a generator. CSP is one of the technologies
planned for Desertec, a project to generate electricity in the
deserts of North Africa. E.ON becomes a founding member of
Desertec in July.
E.ON and Dongjiang Environmental agree to partner on a Clean
Development Mechanism (“CDM”) project in China to recover
landfill gas (which consists mostly of methane, a greenhouse
gas) and use it to generate electricity. The project will displace
the emission of 120,000 metric tons of CO 2 annually. In October,
E.ON and Bionersis form a partnership to conduct CDM projects
across Southeast Asia.
As part of its commitment to the European Commission, E.ON
reaches an agreement to sell 13 run-of-river hydroelectric plants on
the Inn River in Bavaria, Germany, to Österreichische Elektrizitätswirtschafts-Aktiengesellschaft
(“Verbund”). In return, E.ON
receives power procurement rights from pumped-storage hydroelectric
plants of the Zemm-Ziller Group and cash compensation.
July
E.ON takes a step into the future of human transportation when
it distributes 15 battery-powered Mini E cars to test drivers and
opens a public recharging network in Munich, Germany. By investing
in low-carbon generation technologies and smart grids,
the energy industry will make a key contribution to sustainable
climate protection in the transportation sector. That’s why E.ON
is spurring the development of electromobility with pilot projects
like this one.

E.ON and GdF Suez sign agreements to swap about 1,700 MW of
power capacity. E.ON divests 860 MW of conventional capacity,
130 MW of hydro capacity, and 700 MW of power procurement
from nuclear assets. In return, E.ON acquires from the GdF Suez
Group two conventional power stations in Belgium and 770 MW
of power procurement rights from nuclear assets with delivery
points in Belgium and the Netherlands.
August
Management and employee representatives in Germany agree
on the basic principles and an overall framework for implementing
PerformtoWin, E.ON’s Group-wide efficiency-enhancement
program, in a socially responsible manner. This is followed in
November by an agreement on a comprehensive plan to provide
employees in Germany with security on job-related issues stemming
from the implementation of PerformtoWin.
A new 440 MW combined cycle gas turbine plant with integrated
combined heat and power enters service in Malmö, Sweden. The
Öresundsverket plant has an efficiency of 58 percent, making it
one of the most efficient power plants in Europe.
September
E.ON’s 457.5 MW wind farm in Big Spring, Texas, becomes fully
operational, followed one month later by another E.ON wind
farm in Roscoe, Texas. With 627 turbines and roughly 782 MW of
installed capacity, Roscoe is the world’s largest wind farm. Together,
the two wind farms produce enough electricity to power
more than 365,000 homes. In November, Stony Creek wind farm
in western Pennsylvania enters service, increasing E.ON’s installed
wind capacity in the United States to about 1,700 MW.
E.ON reaches an agreement with EdF and EnBW under which
the companies will swap a significant amount of generation
capacity and power procurement rights. Under the agreement,
E.ON receives 800 MW of power procurement rights from nuclear
assets in France and increases to 100 percent its stake in SNET,
a France-based power producer. In return, E.ON divests 800 MW
of nuclear power procurement in Germany, its 50.4-percent stake
in a coal-fired power station in Rostock, and power procurement
rights from Buschhaus, also a coal-fired power station.
The Year in Review Our Company
October
E.ON signs an agreement to sell its 50-percent stake in Kraftwerk
Mehrum GmbH to Stadtwerke Hannover.
E.ON finalizes the acquisition of just under 25 percent of Yuzhno
Russkoye, a natural gas field in Siberia, from Gazprom. Yuzhno
Russkoye has more than 600 billion cubic meters of reserves,
making it one of the world’s largest gas fields.
November
E.ON sells its ultrahigh-voltage transmission system in Germany
to TenneT, a state-owned transmission system operator in the
Netherlands. The purchase price as of December 31, 2009, for all of
the equity in E.ON subsidiary transpower is provisionally set at
€1.1 billion. This amount also includes net cash held by the company.
The transaction closed on February 25, 2010. The combination
of the TenneT and transpower networks has the potential to
create Europe’s first cross-border power transmission system.
December
E.ON sells most of Thüga to Integra/KOM9, a consortium of municipal
utilities, for approximately €2.9 billion. Thüga’s stakes
in GASAG Berliner Gaswerke, HEAG Südhessische Energie, Stadtwerke
Duisburg, and Stadtwerke Karlsruhe are excluded from
the sale. This disposal also underscores E.ON’s willingness to make
a major contribution to the continuing liberalization of structures
in Germany’s energy market.
Following antitrust approval, E.ON largely completes the divestment
of generation capacity in Germany under its commitment
to the European Commission.
21

Our employees’ performance is integral to E.ON’s
success. Our motivating, employee-oriented, work environment
helps us attract highly skilled and energetic
people and retain our employees for the long term.
A lot of factors go in to making us an attractive employer:
our extensive training programs, international
career development opportunities, systematic support
for women employees, the high quality of our vocational
training, and competitive salaries and retirement
plans. But one factor stands out: we’re a responsible
employer, particularly in tough economic times. That
means that we work to find solutions that secure jobs
and we deal fairly with employees whose job situation
changes.
But being an E.ON employee means more than working
in an attractive work environment. It means
having the chance to help shape the future of energy
supply, to take on challenging tasks, and to have fun
doing it. It also means working at a company where
there are always new and exciting career development
opportunities.
23
Our Team

24 Our Team Board of Management
Our objective: To shape the future.
The five members of the E.ON Board of Management are responsible for managing the
company and representing it to the public. They steer E.ON’s business operations, set
its strategic course, and define its policies. They also regularly inform the E.ON Supervisory
Board about all matters relevant for the company.
“As our company grows so does
our social responsibility to provide
a sustainable energy supply.”
Wulf H. Bernotat
Chairman and Chief Executive Officer
Born 1948 in Göttingen
Member of the Board of Management since 2003
Group Executive Human Resources, Investor Relations, Corporate Audit,
Corporate Communications, Economic and Public Affairs
Düsseldorf
“Our company‘s structure needs to be as differentiated as
necessary and as simple as possible. Our objective is
always to manage our business in the best way possible.“
Johannes Teyssen
Vice Chairman
Born 1959 in Hildesheim
Member of the Board of Management since 2004
Corporate Planning & Controlling, Corporate Procurement, PerformtoWin, Upstream/Generation,
Trading & Optimization, Marketing & Sales, Regulation & Infrastructure
Düsseldorf

“Our team is made up of thousands of
future-shapers who are actively helping bring
about tomorrow’s energy supply system.”
“Our systematic, value-oriented finance
strategy provides an important foundation for
maintaining investors’ trust for the long term.”
Executive Vice Presidents
Christoph Dänzer-Vanotti
Born 1955 in Freiburg im Breisgau
Member of the Board of Management since 2006
Group Human Resources, Corporate Sustainability, Real Estate/Mining,
Corporate Incident & Crisis Management, Facility Management
Lutz Feldmann
Born 1957 in Bonn
Member of the Board of Management since 2006
Mergers & Acquisitions, Legal & Compliance,
Corporate Development, New Markets
Düsseldorf
Düsseldorf
“After years of significant growth,
we’re now focusing on integrating our new companies
and leveraging synergies.”
Marcus Schenck
Born 1965 in Memmingen
Member of the Board of Management since 2006
Finance, Accounting, Tax, IT
Düsseldorf
Peter Blau, Düsseldorf Gert von der Groeben, Düsseldorf (until December 31, 2009) Heinrich Montag, Düsseldorf
Board of Management Our Team
25

26 Our Team Supervisory Board
The 20 members of the E.ON Supervisory Board bring together expertise and experience
from many sectors of the economy: seasoned executives, union officials, works council
representatives, and employees. The Supervisory Board consists of ten shareholder and
ten employee representatives. It monitors and advises the E.ON Board of Management
and is directly involved in all important decisions about E.ON’s future.
Prof. Dr. Günter Vogelsang
Honorary Chairman of the Supervisory Board, E.ON AG
Ulrich Hartmann
Chairman of the Supervisory Board, E.ON AG
Hubertus Schmoldt
Deputy Chairman of the Supervisory Board, E.ON AG
Werner Bartoschek
Chairman of the Group Works Council, E.ON Ruhrgas AG
Sven Bergelin
Director of the National Energy Industry Group, Unified Service Sector
Union, ver.di
Gabriele Gratz
Chairwoman of the European Works Council, E.ON AG
Jens P. Heyerdahl d.y.
Industrialist/Owner (member since June 1, 2009)
Wolf-Rüdiger Hinrichsen
Chairman of the Works Council, E.ON AG
Ulrich Hocker
General Manager, German Investor Protection Association
Prof. Dr. Ulrich Lehner
Member of the Partner Committee, Henkel AG & Co. KGaA
Ulrich Hartmann
Bård Mikkelsen
President und Chief Executive Officer, Statkraft AS (member until May 31, 2009)
Erhard Ott
Member of the National Executive Board and Director of the Federal
Utilities, Waste Management, and Transportation Division; Unified Service
Sector Union, ver.di
Hans Prüfer
Chairman of the Group Works Council, E.ON AG
Klaus Dieter Raschke
Chairman of the Combined Works Council, E.ON Energie AG
Dr. Walter Reitler
Senior Vice President of HSE and Corporate Responsibility, E.ON Energie AG
Dr. Henning Schulte-Noelle
Chairman of the Supervisory Board, Allianz SE
Dr. Karen de Segundo
Attorney
Dr. Theo Siegert
Managing Partner, de Haen-Carstanjen & Söhne
Prof. Dr. Wilhelm Simson
Chairman of the Supervisory Board,
Merck KGaA (member until June 30, 2009)
Dr. Georg Freiherr von Waldenfels
Attorney
Werner Wenning
Chairman of the Board of Management, Bayer AG
Hans Wollitzer
Chairman of the Company Works Council, E.ON Energie AG
You’ll find the Report of the Supervisory Board in our
Financial Report.

Employees Our Team
Our employees can rely on us.
Particularly when times are tough.
People strategy
Our employees are integral to our success.
One of our most important tasks is therefore
to hire and retain the best people and
foster their development. We meet this
challenge by pursuing our people strategy:
a uniform and integrated Group-wide
approach to human resources (“HR”) that
was developed in collaboration with all of
our market units.
Our people strategy is closely aligned
with E.ON’s corporate strategy and objectives.
Based on E.ON’s business needs,
it defines a number of key focus areas.
We review our focus areas annually and
adjust them if necessary. Two of these
areas—employer branding and talent
management—can serve as examples of
our accomplishments in 2009.
Highly qualified and motivated employees are a scarce resource and are a big part of
what makes a company successful. All the more so during an economic crisis. We’re
committed to being there for our employees. It’s by being loyal to our people, particularly
in times of change, that we can earn their loyalty for the long term.
Placing high as a workplace
The energy industry offers exciting opportunities.
We want to be known as an
outstanding employer—in and outside our
industry—so that we can attract and retain
the right employees for our business.
We seek out opportunities to meet
and dialog with potential hires at career
fairs, on university campuses, and at
schools. We talk to them about the varied
and exciting job opportunities at E.ON,
our corporate culture and values, and the
many programs—from professional development
to flexible options to promote
work-life balance—that make us a top
employer.
Our rankings in independent surveys
indicate that we’re on the right course.
The E.ON Group was recognized by the
Great Place to Work� Institute Europe as
one of the Best Workplaces in Europe
2009. We earned the institute’s coveted
Best Workplace seal and, with tenth
place, achieved our best-ever showing.
In addition, E.ON ranked seventh in the
Great Place to Work� Institute Germany’s
2009 competition for Best Workplaces in
Germany.
Safety leadership requires safety-conscious
leaders: Group-wide safety training for
executives
Occupational safety is a top E.ON priority. In
2009, we had 2.2 workplace injuries resulting
in lost time per million hours of work
(“LTIF”), which makes E.ON one of the safest
companies in our industry. Our objective is
to lower our LTIF to 1.0 by 2015, which would
rank us among the world’s safest industrial
companies. That’s why top E.ON executives
are playing a more active role in further
improving our safety performance. We’ve
added several occupational safety indicators
to executives’ individual performance targets.
We’re also providing them with targeted
training to further enhance their safety
awareness and competency. We believe that
establishing a robust safety culture throughout
our company requires heightened safety
awareness up and down our organization,
from our power plants to our boardrooms.
27

28 Our Team Employees
Women engineers at Scholven power station:
supporting the development of women employees is a top priority.
20% women
hirees for senior management
positions
That’s our medium-term
objective, which means that
we intend to achieve a
sig nif i cant increase in the
percentage of women senior
managers. To help increase
the percentage of women top
executives, E.ON board
members serve as mentors
to women members of our
Executive Pool.
Identifying future leaders. Helping
them realize their potential.
Talent management is about developing
our employees with exceptional potential.
It’s how we prepare them for new functions
and new career opportunities.
The Group-wide E.ON Graduate Program
is the ideal career launch pad for
recent university graduates, particularly
if they want to work internationally. The
program gives them the opportunity to
gain experience during an 18-month
rotation through different E.ON units and
is accompanied by specialized training
and mentoring. It’s a great way for top
graduates to start a career with E.ON.
And for us to have highly qualified new
employees.
We evaluate the potential of our employees
through annual job-performance reviews.
We also conduct an annual Group-wide
management review which applies uniform
standards to assess the performance
and potential of our executives,
senior managers, and high potentials. The
results enable us to carry out systematic
talent management, make staffing decisions
as objective and transparent as
possible, and conduct detailed career and
succession planning across organizational
boundaries.
Supporting the development of our
female employees is another top priority.
Like at many other companies, the percentage
of women in senior management
at E.ON is too small. The purpose of an
initiative called Talent Management
Women is to raise this percentage and to
foster and make better use of the abilities
of women at our company and of women
in the labor force. The initiative consists
of several components, including development
support through a mentoring
program, greater use of part-time arrangements
for management positions, and
flexible childcare options.
The E.ON Academy helps our managers
and next-generation leaders embrace
life-long learning by providing them with
custom-tailored programs to develop
their leadership and personal skills and
to continually add to their professional
knowledge. The Academy also provides
more than 25,000 E.ON employees with
advanced professional training in key
areas such as marketing, energy trading,
project management, IT, HR, and health
and safety.
Early diagnosis, better prognosis
An economically healthy company needs healthy employees. That’s why we encourage our people
to take good care of themselves and why we create a work environment that supports their
health. In March 2009, companies across E.ON offered employees health-education and cancerprevention
programs as part of the E.ON Challenge Cancer Campaign. The programs ranged
from smoke-cessation classes to free screening for breast, colon, and skin cancer. Prevention
and early detection are both essential. For most types of cancer, early detection significantly improves
recovery rates. The E.ON Challenge Cancer Campaign made a tangible contribution: about
one third of our employees took advantage of the opportunities provided by the campaign.

Employees by market unit 2009 1
Central Europe 48,126
Pan-European Gas 3,143
U.K. 16,098
Nordic 5,570
U.S. Midwest 3,119
Energy Trading 1,175
New Markets 7,976
Corporate Center 2 3,120
Total 88,227
1 Excludes board members/managing directors (330) and
apprentices (2,556).
2 Includes E.ON IS.
HR supports successful implementation
of PerformtoWin
Job-security milestones
PerformtoWin, our Group-wide program
aimed at achieving sustained cost and
performance improvements in all market
units and at all stages of the value chain,
has made significant progress. Continuing
a long tradition at our company, we’ve
worked closely with employee representatives
to shape how organizational
changes resulting from the program will
be implemented. In August, the E.ON
Board of Management and employee
representatives in Germany agreed on the
basic principles for implementing PerformtoWin
and how to handle job- related
issues. Management and employee representatives
have also agreed on a comprehensive
plan for employees affected by
PerformtoWin projects at our operations
in Germany. At E.ON companies outside
Germany, employee representatives are
involved in similar processes in accordance
with the laws of the respective country.
Workforce by region 2009 1
Germany 35,636
United Kingdom 17,179
Romania 6,772
Sweden 5,317
Hungary 4,913
Russia 4,702
USA and Canada 3,256
Czech Republic 2,735
Bulgaria 2,108
Other 2 5,609
1 Excludes board members/managing directors (330) and
apprentices (2,556).
2 Includes Italy, Spain, France, the Netherlands, Poland, and
several other countries.
Streamlining our management
structures
Integrating our new market units and
creating new functional entities have
steadily increased the number of managers
at our company. In the wake of
these changes, it’s time to reevaluate our
management structures. Our objective
going forward is to increase management
efficiency by reducing the number of
management positions and by increasing
individual managers’ area of responsibility.
Employees Our Team
29
Foresightful hiring approach
As part of our foresightful planning, we’ve
taken a conservative approach to hiring
since the start of the recession. Moreover,
PerformtoWin will result in redundancies.
By scaling back our external hiring, we’re
creating more opportunities for employees
affected by redundancies to find new
jobs within our organiza tion. This promotes
job security, which is the centerpiece of
the PerformtoWin agreement reached by
management and employee representatives
in Germany.
But we still need to think ahead and
ensure that we have an adequate supply
of potential future leaders and highly
skilled technical staff. And, despite the
sluggish economy, we’ll continue to meet
our social responsibility to provide training
to young people. Consequently, the E.ON
Graduate Program as well as our apprentice
program and training initiative in
Germany are excluded from the hiring cutback.
Our operations in countries outside
Germany have defined similar exceptions,
predominantly for jobs that can’t be filled
internally.

Our objective is to achieve lasting, sustainable growth
in shareholder value. The trust of our investors and
of international financial markets in E.ON is both a
source of motivation and an obligation. We do everything
we can to deepen this trust.
We therefore carry on an intensive dialog with our
shareholders and bond investors so that we can
provide them with up-to-date, transparent information
and answer their questions quickly and reliably.
We systematically pursue a value-oriented strategy
so that E.ON remains successful in the future and
attractive to investors. Our finance strategy provides
a stable framework for this effort. In addition, we
place a high priority on creating lasting value through
our environmental and social performance. Capital
markets increasingly look behind financials and take
a holistic view of a company’s performance.
31
Our Investors

32 Our Investors An Overview
Thanks to our
investors‘ trust,
we’re staying
on cou rse.
Shareholder structure1, 2
Percentages
Switzerland 3%
Other (World) 5%
France 9%
Other (Europe) 14%
United Kingdom 15%
1 Percentages based on total investors identified.
2 Divergence from 100% due to rounding effects.
Sources: Share register (as of February 18, 2010),
Thomson Reuters (as of December 31, 2009).
E.ON Group bonds and promissory notes by currency 1
Percentages (total: €30.4 billion)
Other 1%
Japanese yen 2%
Swedish kroner 2%
Swiss francs 5%
U.S. dollars 9%
Pounds sterling 16%
1 Outstanding E.ON Group bonds (including private placements)
and promissory notes at December 31, 2009.
30% Germany
25% USA and
Canada
65% Euros
They come from as far away as Hong Kong and as
near as our own neighborhoods. Whether they’re
a mutual fund in New York, a big bank in Basel, a
family of four in Florence, or our own employees
in Essen, they all have one thing in common:
They’ve trusted us with their money—by buying
our stock or our bonds. We strive to continually
earn this trust by designing and executing a strategy
that offers our investors an attractive return,
now and in the future.
The people and institutions that invest in E.ON
come from all over the world. The main financial
centers in Europe and North America are well
represented, while the percentage for Germany
consists of a large number of retail investors.
Our shareholders and bond investors
from around the world lead to a
broadly diversified investor structure.
Our bonds are mainly denominated in euros but
also in pounds sterling, U.S. dollars, Swiss francs,
Japanese yen, and several other currencies. E.ON
has issued more than €27 billion in bonds since 2007.
A key objective is for our bond portfolio to be
highly diversified in terms of currency, investor base,
and maturity. With this approach, E.ON has not
only attracted bond investors in its core European
market but from all over the world.

Finance Strategy Our Investors
Uninterrupted access
to financing.
In downpour and in drought.
When we designed our finance strategy
in 2007, debt capital was abundant and
cheap. We knew at the time that the
steady rain of credit wouldn’t last forever.
No, we’re not saying we foresaw the global
financial and economic crisis. But we are
saying that we purposely designed a
sustainable finance strategy that would
ensure that we have stable sources of
funding under all credit scenarios. When it’s
flowing freely and when it all but dries up.
We need to ensure uninterrupted access
to financing because we operate in a
capital-intensive industry. Our assets—
wind farms, power stations, wires networks,
gas pipelines, and underground
gas storage facilities—take several years
to build and tie up capital for decades.
E.ON’s target rating of single A flat/A2—
which is a solid rating compared with
those of our competitors—meets these
requirements. It gives us financial flexibility
and unrestricted access to all types
of financing. It also enables us to optimize
our capital structure at an efficient
cost of capital.
In 2007, we launched an unprecedented
investment campaign to buy and build
assets that would grow our business, expand
our geographic footprint, and help
us ensure that tomorrow’s energy supply
remains secure, affordable, and climatefriendly.
To go with our investment campaign
and with our vision of becoming
the world’s leading power and gas company,
we designed a finance strategy
that’s attractive and reliable to shareholders
and bondholders.
We monitor our capital structure using a
debt-to-earnings ratio called debt factor.
Our debt factor is equal to our economic
net debt divided by our adjusted EBITDA.
Our target debt factor is 3, with a range
of 2.8 to 3.3. Because our debt factor was
at the upper end of this range at yearend
2008 and 2009, we’re taking countermeasures.
We’ve streamlined our investment
plans and launched a program to
optimize our portfolio that’s designed to
yield more than €10 billion in cash by the
end of 2010. Through asset sales under
this program we’ve already secured about
€6 billion in cash. These proactive measures
demonstrate that investors can
trust us—in good times and difficult times.
In addition, we want our shareholders
to earn an attractive return on their investment.
Here, a key factor is our consistent
dividend policy, which will continue beyond
2009. Our target dividend payout ratio
remains at 50 to 60 percent of adjusted
net income. This way we offer our shareholders
the opportunity for a long-term,
value-enhancing investment that also offers
the prospect of sustained, solid growth.
Capital-intensive industry: we need to ensure
uninterrupted access to financing to make
investments in key energy infrastructure.
33

34 Our Investors E.ON Stock
Performance of E.ON stock.
Development of E.ON stock in 2009
12/30/2008
E.ON stock
STOXX Utilities
E.ON stock is listed on all German stock exchanges.
On December 30, 2009, E.ON stock’s weighting in
the DAX index of Germany’s top blue chips was
10.1 percent, once again the highest weighting in
the index. E.ON stock was the DAX’s third-most
traded stock by volume in 2009. In the United
States, E.ON stock is traded over the counter in
the form of American Depositary Receipts (“ADRs”).
The conversion ratio between E.ON ADRs and E.ON
stock is one to one.
In a volatile stock market, E.ON stock (factoring
in the reinvestment of the dividend) finished 2009
9 percent above its 2008 year-end closing price,
thereby outperforming its peer index, the STOXX
Utilities, which rose by 7 percent during 2009.
However, E.ON stock underperformed the German
stock market (the DAX was up 24 percent) and
the European stock market (the EURO STOXX 50
was up 26 percent).
Five-year performance
Investors who purchased €5,000 worth of E.ON
stock at t he end of 2004 and reinvested their cash
dividends (including the special dividend in 2006)
saw the value of their investment increase to €8,219
by the end of 2009, which represents an average
annual return of 10.5 percent. E.ON stock thus
outperformed the DAX (7 percent per year on
average) and the EURO STOXX (3.1 percen t per year
on average) and also had a higher annual return
than the STOXX Utilities (8.5 percent per year on
average).
Want to find out more?
eon.com/stock

E.ON stock‘s five-year development
Weighting of E.ON stock in major indices
(as of Dec. 30, 2009)
DAX 10.1%
Dow Jones EURO STOXX 50 3.6%
Dow Jones STOXX Utilities 18.8%
Percentages E.ON stocks portfolio DAX EURO STOXX STOXX Utilities
160
120
80
40
0
E.ON Stock Our Investors
2004 2005 2006 2007 2008 2009
35
12/30/2009

36 Our Investors E.ON Stock
E.ON stock key figures 1
€ per share 2005 2006 2007 2008 2009
Earnings attributable to the shareholders of E.ON AG 3.75 2.82 3.69 0.68 4.80
Earnings from adjusted net income 1.84 2.22 2.62 3.01 2.80
Dividend 0.92 1.12 1.37 1.50 1.50
Dividend payout (€ in millions) 4,614 2 2,210 2,560 2,857 2,858
Twelve-month high 3 29.64 34.80 48.69 50.93 30.47
Twelve-month low 3 21.50 27.37 32.02 23.50 18.19
Year-end closing price at Dec. 30 3 29.13 34.28 48.53 28.44 29.23
Number of shares outstanding (in millions) 1,977 1,979 1,895 1,905 1,905
Market capitalization 4 (€ in billions) 57.6 67.6 92.0 54.2 55.7
Book value 5 22.50 24.62 26.06 18.10 21.17
Market-to-book ratio 6 (percentage) 129 139 186 157 138
E.ON stock trading volume 7 (€ in billions) 62.5 92.5 136.2 119.2 55.9
Trading volume of all German stocks (€ in billions) 1,095.8 1,539.3 2,350.9 2,029.6 1,009.1
E.ON stock’s share of German trading volume (percentage) 5.7 6.0 5.8 5.9 5.5
1Adjusted for discontinued operations; figures prior to 2005 calculated according to U.S. GAAP.
2Includes special dividend of €1.42 per share.
3Xetra. 4Based on ordinary shares outstanding.
5Shares attributable to the shareholders of E.ON AG.
6Year-end stock price expressed as a percentage of book value per share (excluding minority interests).
7On all German stock exchanges, including Xetra.
Dividend
A t the 2010 Annual Shareholders
Meeting, management will propose
that the cash dividend for the 2009
financial year be kept stable compared
with the prior year at €1.50 per
share. The payout ratio is 54 percent
of adjusted net income versus
51 percent in the prior year. Since
the 2003 financial year, the dividend
has increased from €0.67 to €1.50,
which represents an average increase
of 14.4 percent per year. Based on
E.ON stock’s year-end 2009 closing
price, the dividend yield is 5.1 percent.
This again makes E.ON one of
the DAX’s top dividend performers,
which underscores the attractiveness
of E.ON stock for investors.
E.ON stock information
Dividend per share
€ per share
2.00
1.00
Dividend Special dividend
Payout ratio (%)
0.67 0.78 0.92 + 1.42 1.12 1.37 1.50 1.50
2003 2004 2005 2006 2007 2008 2009
Type of shares Stock codes Stock symbols
Ordinary shares with Germany USA Reuters Bloomberg
no par value/ WKN ENAG99 Cusip No. 268 780 103 FSE EONGn.F FSE EOAN GF
registered shares ISIN DE000ENAG999 Xetra EONGn.DE Xetra EOAN GY
ADR EONGY.PK ADR EONGY US
47
49
47
51 51
54

Continually
strengthening
relationships.
Our investor relations (“IR”) are founded on four principles: openness,
continuity, credibility, and equal treatment of all investors.
Each year we work hard to be even better in each of these areas.
Our activities in 2009 were again guided by our commitment to
continual improvement.
Our mission is to provide straightforward, transparent information
at our periodic roadshows, at conferences, at eon.com,
and when we meet personally with investors. In 2009, we increased
the number of roadshows to create even more opportunities
to talk with investors one on one. Continually communicating
with our investors and strengthening our relationships with
them are essential for good IR.
Capital M arket Day 2009 in Essen: talkin’ ’bout our generation
Our annual Capital Market Day typically gives analysts and institutional
investors a closer look at one of our market units. The 2009 event held
in Essen’s Zollverein, a complex of buildings once part of a coal-mining
facility, focused instead on our biggest single business—our generation
activities—which accounts for more than half of our adjusted
EBIT. The subject was particularly timely because we’re in the process of
adopting a centralized, functional management approach for our generation
fleet in Europe. In Essen, E.ON Board of Management members
and senior managers from our generation business talked to investors
about the long-term trends in European power generation and the
course we’ve set for the E.ON fleet. Our generation activities were a
topic of further discussion at investor conferences and roadshows.
E.ON Stock Our Investors
Each year we invite analysts and institutional investors to a
conference held on the day we release our annual report. We
present our results for the previous financial year and our objectives
for the current year. The conference for our 2008 results
was held in March 2009 in Düsseldorf.
Capital Market Day is another key date. One of its main
purposes is for the senior leadership of our market units and
operating companies to talk in detail about their markets and the
operational side of our business. We believe it’s important for
analysts and institutional investors to get to know the people
who manage our business in our target markets. And we believe
facilitating this direct contact further enhances our credibility and
helps deepen the capital market’s trust in E.ON and in E.ON stock.
All visitors to eon.com will find our financial reports and
executive presentations as well as webcasts and podcasts of IR
events in both audio and video format. And you can always reach
us directly: just call us or send us an e-mail.
Want to find out more?
eon.com/investorrelations
Contact us:
investorrelations@eon.com
T +49-2 11-45 79-5 49
37

38 Our Investors E.ON Bonds
A program of historic magnitude.
Successfully completed.
In 2009, we successfully concluded the funding program we’d announced in May 2007 to
coincide with our growth-oriented investment campaign. It was the biggest funding
initiative in our company’s history. Despite the global financial crisis and the difficult
market situation it created, we successfully implemented our program, raising a total
of more than €27 billion debt financing since September 2007. Our success under tough
conditions is a testament to our financial strength, clear strategy, and transparent
communications.
Ensuring liquidity early:
funding in 2009
In a tight debt market you have to seize
opportunities when they arise. And plan
ahead: you don’t want to be left needing
funding when the credit market dries up.
That’s why our strategy was to ensure our
liquidity early. We did so by meeting our
net funding needs well before the end of
the year. Of our total 2009 bond issues of
around €8.1 billion, we issued €6.1 billion
in the first quarter. These consisted mostly
of large-volume benchmark bonds denominated
in euros and pounds sterling. As the
year progressed, we focused on private
Maturity Profile of bonds and promissory notes
issued by E.ON AG and E.ON International Finance B.V.
placements with significantly longer
maturities (up to 30 years) and on smaller
bonds denominated in other currencies
(like Swiss francs, U.S. dollars, Japanese
Yen, Swedish kroner, and Hong Kong
dollars). These steps further broadened
our bond profile, underscoring our objective
of a highly diversified debt portfolio
in terms of investor groups, instruments,
currency, and maturity.
As in previous years, in 2009 we again
made use of commercial paper (“CP”), a
short-term debt instrument, to meet
funding peaks. However, compared with
year-end 2008, we were able to markedly
€ in billions As of Dec. 31, 2009
4.0
3.0
2.0
1.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+
reduce our CP volume outstanding. We
had issued €1.5 billion in CP as of year-end
2009 compared with €7.3 billion as of
year-end 2008.
In November 2009, we extended, at
good terms, the short-duration tranche of
our syndicated credit facility for another
year and deliberately reduced it to
€4 billion (down from €7.5 billion). The
nearly €5 billion long-duration tranche
remains in place until the end of 2011. We
haven’t drawn on our syndicated credit
facility, which serves as a backup for our
CP activities and as a general backup
funding source.
Bond weightings
Like E.ON stock, E.ON bonds loom large
in major European indices. E.ON’s weighting
was 10.6 percent in the iBoxx Utilities
index and 2.6 percent in the iBoxx Non-
Financials index (as of December 31,
2009). These substantial weightings are
indicative of both E.ON’s significance in
financial markets and the robust trading
volume of our bonds in the secondary
market.
Want to find out more?
eon.com/bonds

E.ON Bonds Our Investors
Investors have lent us over €27 billion
since 2007. Naturally, they want to know
how we’re doing.
We understand our investors’ information requirements.
Because we invest billions, too, and can
appreciate that people want to monitor their
investments carefully.
Our aim is to provide our creditors with the highest
degree of transparency. One of the ways we achieve
this is by conducting annual non-deal roadshows
in major European financial centers during which
we present an update on E.ON and its strategy and
answer questions. These events also create opportunities
for personal contact. This is important,
because finance isn’t just about numbers but to a
large degree also about trust.
In addition, we hold regular non-deal investor
conference calls, organize informational events
for our core banks, and offer detailed debt-related
information on our website. And we can always be
reached by phone or by e-mail if bond investors
need answers to specific questions.
Creditor relations also involves our interaction
with rating agencies. Investors are very interested
in E.ON’s credit rating as an independent assessment
of our financial stability and capacity to repay
our debt on time. E.ON is rated by Moody’s and
Standard & Poor’s, with whom we have a longstanding
relationship of trust.
Bond investors are interested in many of the
same topics as shareholders. They want to know
about our strategy and prospects for the future in
order to gauge our operating strength. Because
we’re familiar with the information requirements
of existing and potential bond investors, we can
give them the details they need to make wellfounded
investment decisions.
Want to find out more?
eon.com/creditorrelations
Contact us:
creditorrelations@eon.com
T +49-211-4579-563
Bonding with our investors:
Non-deal roadshow visits European financial centers
As a frequent debt issuer in recent years, E.ON conducts
an annual non-deal roadshow instead of a deal roadshow
before each benchmark bond issue. Our 2009
roadshow was held in September and took us to three
major European financial centers: Paris, London, and
Frankfurt. These events give us the opportunity to
provide debt investors with detailed information about
E.ON, to talk personally to a large number of them,
and to respond to their questions. To stay in close
contact with the many investors who couldn’t attend
the annual roadshow, we held two debt investor
conference calls in 2009. The calls provide bond investors
and analysts with an update on E.ON’s financial
highlights and strategy and give them the chance to
ask questions about specific topics.
39

E.ON has long been active along the entire value chain
in power and gas. This business model has proven its
worth in our industry. Following a period of substantial
growth, we now have a broad platform and good
market positions from which to successfully meet the
challenges of the future. As the economic crisis has
demonstrated, our broad diversification—geographically
and along the value chain—is the right strategy
and enables us to respond flexibly in difficult market
situations.
We launched PerformtoWin, our Group-wide efficiencyenhancement
program. Before the economic crisis
started. Its purpose is to deliver lasting earnings improvements—€1.5
billion by 2011—by enhancing the
efficiency of our organization and our productivity.
Continual performance enhancement will remain a
key objective at E.ON. The more efficient we are, the
more competitive we are.
Climate protection will also play an important role in
our business in the years ahead. We’re significantly
expanding our renewables capacity and also investing
in new nuclear capacity and high-efficiency conventional
power plants. This will enable us to achieve
our objective of halving our generation fleet’s specific
carbon emissions by 2030.
41
Our Strategy

42 Our Strategy Key Beliefs
A strong platform.
For sustainable value creation.
We have one of our industry’s most
diverse generation mixes and broadest
geographic footprints. We’re Europe’s
biggest gas importer, one of the world’s
leading renewables players, a top energy
trader, and a premier energy supplier
serving nearly 30 million customers. We
use our broad experience along the entire
value chain and across regions to create
and leverage synergies and to select the
best markets for our investments. Our
broad strategic presence, diversified
asset portfolio, leading market positions,
and comprehensive energy expertise
give us a superb platform from which to
execute our value-oriented strategy to
achieve leading performance and sustained,
profitable growth.
Where we are.
Platform
We’ve successfully established one of the
broadest footprints in Europe, entered
new markets, and achieved global scale
in renewables.
Climate protection
We added almost 1 GW of new renewables
capacity in 2009, clear progress
on the road to a cleaner energy supply.
Market integration
We’re actively fostering the creation of
an EU-wide internal market for energy
by making it easier for new players to
Six key beliefs of our strategy
Presence along the entire value
chain
We’re active along the entire value chain
in power and gas: in production, import,
wholesale, distribution, and end-customer
sales. Our comprehensive market knowledge
enables us to operate efficiently and
to create value along the entire value chain
Power-gas convergence
Power and gas are strongly connected
upstream (gas supply to gas-fired generation),
midstream (cross-commodity energy
trading), and downstream (increasing
popularity of dual-fuel products). Our solid
position in all three areas provides us
with valuable synergies and a superior
competitive positioning
Strong market positions
International scale and strong market
positions give us a key competitive edge
in liberalized markets and create a solid
foundation for ensuring supply and for
making the necessary large-scale investments
in climate-friendly power generation.
enter our home markets and by promoting
cross-border power and gas trading.
Performance
Through a Group-wide performanceenhancement
program called PerformtoWin,
we’ve already begun taking the
steps that will deliver €1.5 billion in
annual earnings improvements beginning
in 2011.
Portfolio streamlining
We’re well over halfway towards generating
more than €10 billion in cash in
2009–2010 by optimizing our portfolio
of businesses.
Growth
Growth beyond our traditional core markets
(Germany, the United Kingdom, Sweden)
creates additional opportunities to expand
our business so that we sustain our success
in a consolidating European energy market.
Value from experience
Our deep expertise in all facets of the
energy business is a considerable competitive
advantage, one that we leverage
fully by sharing best practices across our
entire organization.
Market and competition
Open, competitive markets are the best
framework for ensuring a secure, efficient
energy supply. An integrated European
energy market offers E.ON superb opportunities
to strengthen our market position
and to capture value from cross-border
synergies.

What’s ahead.
Main Opportunities Our Strategy
We’re thinking ahead. The future holds two main sources of opportunities:
climate protection and European market integration. And
that’s where we’re focusing a significant share of our resources.
At the same time, we’re making our organization less complex
and significantly reducing our cost structure.
Climate protection
Secure, affordable energy—without the carbon
As one of the world’s leading energy companies, we believe it’s
our responsibility to also be a leader in climate protection. By
2030, we intend to halve our specific carbon-dioxide emissions
compared with the 1990 figure. To get there, we’re significantly
expanding our renewables capacity, investing billions in highly
efficient conventional power plants, exploring opportunities to
build new nuclear generation capacity, and developing new
technologies that will make it possible to generate electricity
from fossil fuels with almost no carbon emissions.
Renewables like wind and hydro are already important ingredients
of our energy mix. They’ll be indispensable in the future
because they combine climate protection and fuel independence.
Right now, government incentives are necessary because they
enable us to invest in renewables under competitive conditions,
creating a green energy resource that benefits the environment
and society in general. Going forward, our clear objective is to
deploy industrial-scale solutions, which will make renewables
more economic and reduce—and ultimately eliminate—the need
for government support.
43

44
Our Strategy Main Opportunities
Climate protection is also an important goal in our distribution
and retail businesses. Our distribution companies are developing
and deploying smart grid technologies that will make it possible
to integrate more renewables and more distributed generation.
We’re also installing millions of smart meters which will enable
people to monitor and control their energy usage and find ways
to use less. And our retail businesses have a full range of energyefficiency
products, services, and initiatives to help our customers
reduce their energy consumption, shrink their carbon footprint,
and save money.
Market integration
Competitive EU internal market
An EU-wide internal market for energy will be good for everyone.
The increasing convergence of EU national markets will make
energy more secure and affordable for our customers, make it
possible to integrate the growth in renewables and decentralized
generation capacity, and open up new markets and opportunities
for us. It’s also a necessary prerequisite for climate-protection
mechanisms like emissions trading to work on a European scale.
Smart meters: enable customers to monitor their energy usage in real
time and identify ways to reduce it.
PerformtoWin
Efficiency and productivity up, costs down
PerformtoWin is a Group-wide project that was already decided on
before the global economic crisis began. The project is aimed
at achieving sustained cost and performance improvements in
all market units and at all stages of the value chain. The improvements
will mainly be achieved by boosting internal efficiency.
PerformtoWin initiatives will deliver €1.5 billion in lasting improvements
to our adjusted EBIT by 2011.
We made swift progress in 2009. We designed detailed road
maps for each of the PerformtoWin projects, which cover our
operations along the entire value chain. We reached an agreement
with employee representatives for implementing the projects
in a socially responsible manner. Implementation of PerformtoWin
is well under way.
We won’t rest on what we’ve initiated with PerformtoWin.
Continuous performance improvement is an essential part of our
corporate culture.
€1.5 billion
in lasting earnings improvements were
identified and will be realized by 2011.

In the years ahead, we’ll continue to
strengthen our businesses through selective
organic investments and through a
clear commitment towards portfolio
Investment Plan Our Strategy
We’ve grown our business.
Now we’re going to optimize
and strengthen it.
In recent years, we’ve grown our business
considerably. We’ve extended our geographic
footprint into new markets
(Russia, Italy, Spain, France), put ourselves
among the global leaders in renewables,
expanded our gas production, and
strengthened our existing businesses in
our traditional core markets. These efforts
have given us a broad international footprint,
fostered the decarbonization of
our generation fleet, and enhanced the
security of gas supplies.
optimization and streamlining. We’ve
already generated about €6 billion of the
more than €10 billion in cash we intend to
derive from portfolio optimization by 2010.
We plan to make economic investments
of about €10 billion in 2010 and of
about €24 billion for the period 2010–12.
Our main focus will be on strengthening
our conventional generation fleet, further
enlarging our renewables capacity (mainly
in wind power, the most economic and
technologically mature renewable), and
expanding our natural gas production.
We also have to take good care of what
we already have. So about €9.9 billion,
or 40 percent, of our investments will go
particularly towards maintaining and
Forty percent of our total investments go towards maintaining our existing assets.
45
replacing existing generation assets and
network infrastructure. One focus will be
on our power distribution businesses in
Germany, the U.K., and Sweden. We’ll also
be continuing to modernize our existing
power plants by increasing their efficiency
and extending their operating lives.
In both ways—through growth and
replacement—we’re planting the seeds
for future earnings enhancement.
You’ll find information about our investments
along with related commentary in
our Financial Report.

The energy business is different depending on where
you are along the value chain. We adopt the management
approach that’s right for our business at each
individual segment. That’s why our organization consists
of functional entities (which are managed centrally)
as well as regional entities (which are managed decentrally).
We take a functional approach to managing those of
our businesses—like renewables, natural gas production,
power-plant construction, and energy trading—where
knowledge transfer and optimization across national
boundaries are key success drivers. At the other end of
the value chain—our network and retail businesses,
for example—success depends more on understanding
local needs. That’s why we operate these businesses
through regional entities that are close to their markets,
customers, and communities.
Our markets and competitive environments are always
changing. To sustain our success into the future, we
regularly analyze our organizational structure to ensure
that it has the right fit for our markets. Whether we
manage a business functionally or regionally, our objective
is always to have the best possible structure in
order to remain attractive for our nearly 30 million
customers. Attractive means that the power and gas
we supply is not only secure and climate-friendly but
also affordable.
47
Our Structure

48 Our Structure An Overview
Superbly positioned.
For our customers.
Our business is segmented into ten market units in line
with the structure of our respective target markets.
The lead company of each market unit is responsible
for coordinating operations in its target market. Business
units manage day-to-day operations in individual
countries or regions and are the first point of contact
for c ustomers, communities, and government agencies.
We have geographically segmented market units
which reflect our regional markets. We also have functionally
segmented market units, one of which operates
across Europe and the other globally. The purpose of
this segmentation is to leverage synergies and pool
expertise.
E.ON has long been active along the entire value chain in power
and gas. This business model has proven its worth in the
marketplace. Today, we have a superb position from which to
successfully meet the challenges in our markets.
Corporate Center
The Corporate Center’s main tasks are to manage E.ON as an
integrated energy company, chart E.ON’s strategic course, define
its financial policy and initiatives, manage business issues that
transcend individual markets, manage risk, and continually
optimize the Group’s business portfolio.
Central Europe market unit
The companies of our Central Europe market unit supply customers
in many Central European countries, including Germany, France,
the Netherlands, Hungary, Slovakia, the Czech Republic, Bulgaria,
and Romania.
Pan-European Gas market unit
Pan-European Gas is responsible for our gas business. Its lead
company is one of Europe’s premier gas companies and among
the world’s biggest investor-owned gas importers. Its customers
include regional and municipal energy utilities, industrial enterprises,
and power stations in and outside Germany.
U.K. market unit
We’re one of the United Kingdom’s leading energy utilities, providing
power and gas service to residential, industrial, commercial,
and municipal customers across Britain.

Operations along the value chain
N ordic market unit
Nordic manages our energy operations in Northern Europe, which
focus mainly on Sweden. It operates along the entire value chain
in power and gas, from generation to distribution and retail.
U.S. Midwest market unit
U.S. Midwest’s operations focus on the regulated energy utility
sector in Kentucky.
Energy Trading market unit
Energy Trading is a functionally segmented market unit, combining
in a single entity all our European trading activities for electricity,
gas, coal, oil, and carbon allowances. It trades on all big European
energy exchanges and has trading activities in over 40 countries
worldwide.
An Overview Our Structure
Generation/ Transmission/ Trading/ Distribution Retail/
Power Production Wholesale Supply Sales
Central Europe 1
U.K.
Nordic
U.S. Midwest 2
Energy Trading
Climate & Renewables
Russia 3
Italy 4
Spain 4
Gas
Central Europe
Pan-European Gas 5 6 7 7
U.K.
Nordic
U.S. Midwest 2
Energy Trading
Italy 4
1 Sold effective December 31, 2009. 2 Regulated. 3 Wholesale only. 4 To be transferred to Energy Trading. 5 Exploration and production. 6 Includes gas storage.
7 Thüga, E.ON Ruhrgas International shareholdings.
New Markets
Climate & Renewables market unit
Climate & Renewables is responsible for the our global carbonsourcing
and renewables businesses. We intend to expand our
leading position in this growth market.
Russia market unit
Our electricity business in Russia consists of a portfolio of
conventional generation assets in several heavily industrialized
regions: Central Russia, Ural, and Siberia.
Italy market unit
We have power and gas businesses in Italy. Our Italian generation
fleet consists mainly of gas, coal, hydro, and wind assets. We also
operate local gas distribution networks, mainly in northern Italy.
Spain market unit
The Spain market unit manages our electricity business on the
Iberian peninsula, which extends along the entire value chain
from generation to distribution and retail.
Want to find out more?
eon.com/structure
49

50 Our Structure Central Europe Market Unit
Central Europe
Market Unit
• Acquisition of full ownership of SNET strengthens position in France
• Asset swap makes E.ON number three in Belgian generation market
• Sale of ultrahigh-voltage transmission system gives new impetus to competition in Germany
48%
Nuclear
Munich
36%
Coal
Europe
Owned generation of 130.4 billion kWh by energy source
7%
Natural gas, oil
Information about our renewables operations is in the section of this
report on our Climate & Renewables market unit starting on page 76.
Klaus-Dieter Maubach
CEO, E.ON Energie
5%
Hydro
4%
Other
2009 power sales
378 billion kWh
2009 gas sales
146.1 billion kWh
2009 sales
€41,419 million
2009 adjusted EBITDA
€6,479 million
2009 adjusted EBIT
€4,817 million
2009 cash-effective investments
€3,256 million
Employees at year-end 2009
48,126

Operations along the value chain
The operations of the Central Europe market unit stretch
from the Atlantic Ocean to the Black Sea. It has subsidiaries
in Germany, France, the Netherlands, Belgium,
Hungary, Slovakia, the Czech Republic, Bulgaria, and
Romania. After Germany, its second-biggest market is
Hungary. Central Europe’s operations consist of power
generation, distribution, and sales; natural gas distribution
and sales; and energy services. Its lead company
is E.ON Energie, which is based in Munich, Germany.
Central Europe Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
Power 1
Gas
1 Sold effective December 31, 2009.
Staudinger power station: one of the largest
in the Central Europe market unit.
Central European energy market
One of the biggest challenges facing Europe’s energy industry is
the creation of an EU-wide internal market for energy encompassing
more than 20 countries which vary by market structure
and degree of competition. Europe has many large players, some of
them state-owned. The energy markets of EU member states
were supposed to have been fully liberalized by mid-2007. Nevertheless,
the competitive situation continues to vary by country.
Germany has one of Europe’s most competitive energy markets.
We committed ourselves to selling our ultrahigh-voltage
transmission system and reducing our generation capacity in
Germany by about 5 GW. These transactions reduced our share
of the German power generation market to about 15 percent.
We swapped a portion of the divested capacity for capacity and
power procurement rights in France, Austria, Belgium, and the
Netherlands, significantly improving our position in Western
Europe. These deals have made us Belgium’s third-biggest power
producer and strengthened our number-three position in France.
51

52 Our Structure Central Europe Market Unit
Bigger in Belgium: deal makes E.ON number three
In November 2009, E.ON and GdF Suez completed an asset swap
agreement under which E.ON Energie receives more than 900 MW of
conventional generation capacity in Belgium and 770 MW of nuclear
power procurement rights with delivery points in Belgium and the
Netherlands. The capacity in Belgium consists of a 556 MW coal-fired
power station in Langerlo and a 385 MW CCGT in Vilvoorde. The deal,
which is one of several that have enhanced competition in Belgium
by reducing GdF Suez’s share of the country’s generation market to
65 percent, makes E.ON Belgium’s third-biggest power producer and
further strengthens our position outside Germany.
Isar 2 nuclear power station: nuclear and hard coal are the
Central Europe market unit’s two most important generation sources.
Generation
The Central Europe market unit generates electricity primarily
from nuclear and hard coal. Other sources include hydro, lignite,
natural gas, and oil.
The 1.1 GW coal-fired generating unit E.ON Energie is building
in Rotterdam will have a thermal efficiency of
46 percent, making it one of the most efficient in the world.
By building new, highly efficient generating units, Central Europe
is helping the E.ON Group reach its ambitious carbon-abatement
targets. A number of state-of-the-art combined-cycle gas
turbines (“CCGTs”) will enter service in 2010 in Germany, France,
and Slovakia. Looking further ahead, E.ON Energie is building a
1.1 GW coal-fired generating unit in Rotterdam, the Netherlands.
The unit will have a thermal efficiency of 46 percent, making it
one of the most efficient in the world. Studies are under way to
determine whether the unit will be equipped with one of Europe’s
first large-scale pilot systems for capturing and storing carbon.
770,000 km
is how long our power network is:
233 times the distance from Brest on
France’s Atlantic coast to Varna on
Romania’s Black Sea coast.

Networks
Networks remain a core Central Europe business even after the
divestment of its ultrahigh-voltage transmission system. It owns
and operates 45,000 km of high-voltage power lines, 725,000 km
of intermediate- and low-voltage lines, and 112,000 km of natural
gas distribution grids. It’s conducting a variety of projects to
develop and refine smart-grid technology, which will enhance
its ability to manage the significant fluctuations in the output
of renewables like wind and solar. Smart meters, which help
customers use energy more wisely, shrink their carbon footprint,
and save money, will play a key role in this effort. In August 2009,
Central Europe launched a new company in Germany, E.ON Metering,
which is working intensively to develop smart-metering
products and services.
Sales
Central Europe’s sales business aims to provide customers with
superior products and services by combining a strong regional
presence with centralized expertise. Founded in 2008, Munichbased
E.ON Vertrieb Deutschland (“E.ON Sales Germany”) manages
Central Europe’s Germany-wide power and gas sales operation
consisting of six regional sales companies, E WIE EINFACH, and
E.ON Energy Sales. E.ON Vertrieb Deutschland’s core tasks are
centralized energy procurement, product management, and
marketing. It also coordinates the operations of the regional
sales companies and develops innovative strategies for further
developing our sales business in Germany. Key aspects of its marketing
strategy are energy efficiency and the nationwide E.ON Energy-Saving
Tour. It launched a special energy-saving tariff in 2009,
one of the first nationwide energy products in Germany.
E.ON Vertrieb Deutschland (“E.ON Sales Germany”) has
managed our entire energy sales business in Germany
since 2008 and is the first contact point for our customers.
SNET becomes wholly owned E.ON subsidiary
In September 2009, E.ON concluded an asset swap with EdF and EnBW
that gave E.ON Energie the remaining 35-percent stake in SNET along
with 800 MW of nuclear power procurement rights in France. SNET,
which is based in Rueil Malmaison just west of Paris, has 2,500 MW of
generation capacity, mainly from coal. The deal, which makes SNET a
wholly owned E.ON subsidiary, strengthens our position as France’s
number-three—and only non-state-owned—generation company and
helps spur energy-market competition.
Central Europe Market Unit Our Structure
Electromobility pilot project: 15 battery-powered Minis
have been plying the streets of Munich since July 2009.
Electromobility
E.ON Energie is active in a number of projects to make electromobility
a viable option for the future. Since July 2009, 15 batterypowered
BMW Minis have been plying the streets of Munich
and using E.ON’s network of recharging stations as a part of a
12-month field test. E.ON Energie has also teamed up with Volkswagen
and other partners on a hybrid car project. E.ON Energie’s
activities cover all key aspects of electromobility, from renewable-source
power generation to practical recharging options.
It’s also exploring the possibility of using the batteries of electric
cars as mobile storage devices. If recharging could take
place when power is abundant, battery-powered cars could be
part of a smart grid that would help derive to greatest benefit
from the fluctuating production of renewable sources.
You‘ll find E.ON‘s consolidated financial statements and related
commentary in our Financial Report.
Want to know more about our Central Europe market unit?
eon-energie.com
53

54 Our Structure Pan-European Gas Market Unit
Pan-European Gas
Market Unit
• Stake acquired in huge natural gas field in Siberia
• First E.ON-operated gas production platform installed
• European gas storage capacity increased by 7 percent
Gas supply of 624.1 billion kWh by country
27%
Norway
3%
Denmark
26%
Russia
7%
Other
Essen
22%
Germany
15%
Netherlands
Bernhard Reutersberg
CEO, E.ON Ruhrgas
2009 gas sales 1
711 billion kWh
2009 sales
€20,640 million
2009 adjusted EBITDA
€2,275 million
2009 adjusted EBIT
€1,754 million
2009 economic investments
€1,610 million
Employees at year-end 2009
3,143
1 Internally consolidated sales volumes of the
Pan-European Gas market unit.

Operations along the value chain
The Pan-European Gas market unit is active along
the entire gas value chain. It has a growing exploration
and production business and is also active in the global
liquefied natural gas (“LNG”) business. Pan-European
Gas operates Europe’s largest gas supply business,
supplying gas to resellers (regional and municipal
utilities), large industrial customers, and gas-fired power
stations in and outside Germany. Its geographically
diverse portfolio of long-term supply contracts with
key producing countries makes it a pillar of gas supply
security in Europe. Pan-European Gas is also engaged
in gas storage in Germany, Austria, Hungary, and the
U.K. and in gas transmission in Germany. Its lead company
is E.ON Ruhrgas, which is based in Essen, Germany.
Pan-European Gas Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
Gas 1 2 3 3
1 Exploration and production. 2 Includes gas storage. 3 E.ON Ruhrgas International shareholdings, Thüga (sold effective December 1, 2009).
Yuzhno Russkoye gas field: a key milestone on the way to our long-term
objective of sourcing 10 billion cubic meters of gas annually from our
own production assets.
European natural gas market
Europe is the world’s second-largest gas market after North
America. With domestic production declining, Europe will become
more dependent on gas imports. This makes it important for
Europe to develop new supply sources, one of which is LNG.
Gas flowing at Rita field
Production started at Rita field in the Southern North Sea in March
2009. Rita, in which E.ON Ruhrgas has a 74-percent stake and is the
operator, represents a significant technical achievement: the first
successful completion of a dual lateral well in a carboniferous reservoir
in the U.K continental shelf. The project has also deepened E.ON
Ruhrgas’s skills and experience as an operator. Rita produces 200 million
cubic meters of gas annually for the U.K. market, enough to supply
100,000 homes.
Exploration and production
E.ON Ruhrgas’s main exploration and production business is in
the North Sea, Russia, and North Africa. The fields in the North
Sea produced 1.4 billion cubic meters (“bcm”) of gas in 2009,
about the same amount as in 2008. Production will increase significantly
in the years ahead as more new fields (particularly
Skarv-Idun in the Norwegian North Sea) are brought on stream.
Major highlights in 2009 were the start of production at Rita
field in March 2009 and the installation of the first E.ON-operated
55

56 Our Structure Pan-European Gas Market Unit
Platform premier: Firs t E.ON-operated production platform installed
In October 2009, a new production platform was secured to the seabed
in 42 meters of water in Babbage gas field. Located in the Southern
North Sea 80 km off the U.K. coast, it’s the first new platform to be
operated by E.ON Ruhrgas. Babbage field, in which E.ON Ruhrgas owns
a 47-percent stake, begins production in April 2010. When all five wells
have been drilled, Babbage will produce about 2 million cubic meters
of gas a day, enough to supply 1,000 households for a year. About 15
people will work on the platform for the first two years of production,
after which it will be operated remotely from shore. Like Johnston
and Rita (see text box on page 55), Babbage is part of E.ON Ruhrgas’s
strategy for the North Sea of focusing increasingly on projects in which
it is the operator, which enables it to capture the most value from
the project while gaining valuable expertise for future projects.
platform, for Babbage field in the Southern North Sea, in September
2009. E.ON Ruhrgas conducted successful exploration drilling
in Norwegian waters in 2009. It was awarded new exploration
licenses in Norway and acquired a stake in a license in Egypt. It
also began exploration activities in Rhourde Yacoub field in Algeria.
To further diversify our gas supply portfolio and ensure supply
security for our customers, our long-term objective is to produce
10 bcm of natural gas annually from our own assets. In October
2009, we took a big step towards reaching this objective by closing
a deal with Gazprom to acquire slightly less than a 25-percent
stake in Yuzhno Russkoye, a gas field in Siberia. Yuzhno Russkoye’s
reserves total more than 600 bcm, making it one of the world’s
largest gas fields. Its annual production capacity is 25 bcm.
LNG
As part of our supply diversification strategy, we also continue
to develop our LNG business. LNG is a flexible supply option and
enables us to access new production regions. LNG currently meets
10 percent of the European Union’s gas demand; this percentage
is expected to increase considerably by 2020.
E.ON Ruhrgas has assembled a geographically diverse portfolio
of regasification capacity at terminals across Europe, which
will enable it to supply to all major E.ON markets, including Spain
and Italy. In 2009, E.ON Ruhrgas expanded its LNG spot-cargo
activities, securing attractively priced LNG to supply our markets
and our gas-fired power plants in Spain. On the liquefaction side,
E.ON Ruhrgas took on a leading role in a promising new LNG
project in Equatorial Guinea. It continues to explore other LNG
partnership opportunities in West Africa and the Middle East.
Long-term gas supply contracts
The mainstay of our European gas supply portfolio consists of
long-term supply contracts we’ve concluded with key producers.
We procured 624.1 billion kWh of natural gas in 2009, 8 percent
less than in 2008, mainly due to the recession. Our biggest suppliers
were Norway (which accounted for 27 percent), Russia (26 percent),
Germany (22 percent), and the Netherlands (15 percent).
Transport
Our gas transport grid in Germany is 11,600 km long and is owned
and operated by E.ON Gastransport. E.ON Gastransport is in the
process of being transformed into an independent transmission
operator (“ITO”) as defined by EU energy law. E.ON Gastransport
already provides transport services to all market participants on a
non-discriminatory basis. We believe that the greater transparency
offered by the ITO model will further enhance E.ON Gastransport’s
credibility with policymakers, regulators, and the public.

In 2008, E.ON Gastransport and bayernets formed a company
called NetConnect Germany (“NCG”) to create a joint market area.
In 2009, the NCG market area was expanded to include the gas
networks of ENI Gas Transport Deutschland, GRTgaz Deutschland,
and GVS Netz. This further simplifies transport for gas shippers,
increases liquidity at NCG’s virtual trading point, and promotes
competition in gas sales. The merger has created by far Germany’s
largest gas market area, with a total system length of about
14,800 km. Going forward, NetConnect aims to attract more partner
networks.
In addition, E.ON Ruhrgas is active in international joint ventures
to expand Europe’s gas pipeline infrastructure. The flagship
project is Nord Stream (and the connecting NEL and OPAL
pipelines), which will create a new gas link from Russia to Germany
and other European countries. E.ON Ruhrgas is also partnering
with other companies to develop TGL, a pipeline from Germany
to Italy via Austria. These projects will enhance Europe’s gas supply
security by establishing additional transport routes.
E.ON Ruhrgas plays a key role in our effort
to tackle climate change by using its gas-storage
expertise to help find effective solutions for
permanently storing carbon dioxide underground.
Natural gas storage facility in Zsana, Hungary:
one of the largest in Central and Eastern Europe.
Pan-European Gas Market Unit Our Structure
Zsana capacity increase
New gas storage capacity entered service at an E.ON Gas Storage
facility in Zsana, Hungary, in December 2009. The expansion project,
which took less than two years to complete, increased Zsana’s working
gas capacity from 1.5 bcm to 2.1 bcm, making it one of the biggest
gas storage facilities in Central and Eastern Europe. E.ON Gas Storage
now has 4.3 bcm of storage capacity in Hungary, enough to meet
nearly one third of the country’s annual gas needs. The aim of the capacity
increase is to buttress Hungary’s gas supply security, particularly
during its often harsh winter. Looking into the future when Hungary
has more cross-border transfer capacity with its neighbors
(Slovakia, Croatia, and Romania), its significant storage assets will enable
it to go from being a gas importer to a regional gas hub. This will
create opportunities for E.ON Gas Storage to market storage services
throughout the region.
Storage
E.ON Gas Storage operates our gas storage infrastructure in
Europe, which has a total working gas capacity of about 10 bcm.
Its largest presence is in Germany where it currently has 6 bcm
of working gas capacity at 13 facilities across the country. In 2009,
E.ON Gas Storage completed an expansion project at a facility in
Hungary (see text box). In the next several years, E.ON Gas Storage
will be enlarging its capacity to a total of more than 12 bcm at
storage facilities in Germany, Austria, Hungary, and the U.K. In
2009, E.ON Gas Storage expanded its customer base in Germany by
marketing storage capacity at specific facilities and grew its
international business by marketing the new capacity in Hungary.
You’ll find E.ON’s consolidated financial statements and related
commentary in our Financial Report.
Want to know more about Pan-European Gas?
eon-ruhrgas.com
57

58 Our Structure U.K. Market Unit
U.K.
Market Unit
• Modernization of generation portfolio continues with development of new
high-efficiency gas-fired power station
• Innovative efforts to further enhance relationship with U.K. customers
• New joint venture to develop up to 6 GW of nuclear capacity in the U.K. by 2025
61%
Natural gas, oil
39%
Coal
Coventry
Europe
Owned generation of 32.8 billion kWh by energy source
Information about our renewables operations is in the section of this
report on our Climate & Renewables market unit starting on page 76.
Paul Golby
CEO, E.ON UK
2009 power sales
78.0 billion kWh
2009 gas sales
71.3 billion kWh
2009 sales
€10,097 million
2009 adjusted EBITDA
€1,080 million
2009 adjusted EBIT
€649 million
2009 cash-effective investments
€897 million
Employees at year-end 2009
16,098

Operations along the value chain
Power
Gas
We’re a leading nationwide supplier of power and gas
and the second-biggest power producer in the U.K.
We have a diverse portfolio of world-class gas, coal, and
oil power stations with 10.3 GW of total capacity.
We’re also the U.K. market leader in combined heat
and power (“CHP”) units, with 0.6 GW of electric and
1.3 GW of heat capacity. In addition, we operate the
country’s second-largest power distribution system and
also supply power and gas to 7.9 million customer
accounts across Britain. E.ON UK is the lead company of
our U.K. market unit and is headquartered in Coventry.
U.K. Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
A substation in Ratcliffe: we operate Britain’s
second-largest power distribution system.
U.K. energy market
The U.K. is committed to becoming a low-carbon economy. Its
short-term goal is to cut CO 2 emissions by 34 percent by 2020;
its long-term goal is to cut emissions by 80 percent by 2050. The
U.K. must also achieve a number of legally binding EU targets,
including the generation of 15 percent of its total energy needs
(electricity, heat, and transport) from renewable sources by 2020.
However, the scope for using renewables for heat and transport
is limited. According to a realistic estimate, this means that to
achieve the 15 percent EU target at least 30 percent of U.K.
electricity may need to be renewable by 2020. Consequently, much
of the responsibility for reducing emissions and expanding
renewables will fall on the energy industry, including E.ON.
E.ON UK is at the forefront of efforts to meet this challenge
by working every day with customers to help them use energy
more efficiently while making sure that we continue to reduce
the carbon intensity of our generation activities. In 2009, this
continued at pace with the ongoing development of Grain, our
carbon capture and storage (“CCS”) plans for Kingsnorth, the goahead
of London Array, the world’s largest offshore wind farm
(managed by our Climate & Renewables market unit, see pages
76–79), and the establishment of Horizon Nuclear Power. By
leading the U.K. debate, we’re successfully raising awareness of
the need to move to a lo w-carbon economy in a way that ensures
energy remains affordable and secure.
59

60
Our Structure U.K. Market Unit
Up to 6 GW
of new nuclear generation capacity
in the United Kingdom by 2025,
enough to power a city the size of
Greater London. That’s the objective
of our new joint venture.
Innovative cogeneration scheme:
high-efficiency gas-fired station to come online in Kent
A new gas-fired CHP station will join our U.K. fleet in 2010. Located on
the Isle of Grain in southeast England, the station will consist of three
state-of-the-art gas turbines with a total capacity of 1.3 GW and generate
enough electricity to power 1 million homes. It will also pipe
0.3 GW of heat in the form of hot water to a nearby liquefied natural
gas (“LNG”) terminal. This makes Grain one of the world’s largest CHP
plants and gives it an overall thermal efficiency of 72 percent. This
innovative and environmentally friendly arrangement cuts the LNG
terminal’s carbon emissions by up to 350,000 metric tons each year
and also reduces the amount of warm water discharged into the river
Medway. Good for electricity consumers, good for the climate.
Generation
Modernizing our generation portfolio
E.ON continues to develop its U.K. portfolio, which currently has
10.3 GW of installed capacity. As Britain adds more wind power, it
will need to add flexible, fossil-fueled generation capacity to
back up the intermittant supply from wind farms. E.ON UK is
adding just such a flexible, high-efficiency 1.3 GW gas-fired CHP
station in 2010 (see text box).
E.ON UK remains committed to building a technologically
advanced cleaner-coal power station at Kingsnorth in southeast
England. Due to its location (which allows connection to depleted
gas fields in the North Sea) and its position as a short-listed
candidate in a U.K. government CCS competition for funding,
Kingsnorth remains one of the most attractive options in the
E.ON Group for the large-scale demonstration of CCS.
Nuclear will also be a vital part of Britain’s future energy
mix. We’re committed to developing the new nuclear stations
that will help achieve the U.K.’s ambitious climate-protection
targets while also providing affordable, secure energy. In January
2009, E.ON UK and RWE npower formed Horizon Nuclear Power,
a 50-50 joint venture whose purpose is to develop up to 6 GW of
new nuclear capacity in the U.K.—enough to power a city the size
of Greater London—by 2025.

Distribution
Through its subsidiary, Central Networks, E.ON UK owns and
operates the electricity distribution system for central England,
providing a reliable supply of electricity to 9.4 million people in
an area that extends from the Lincolnshire coast in the east to
the Welsh borders in the west and from Derbyshire in the north
to Bristol in the south.
Central Networks’ key task going forward under the recently
announced DR5 agreement is to modernize and adapt its network
to meet the needs of a changing energy industry. This includes
deploying state-of-the-art technology to make the network even
safer, more efficient, and more reliable.
Retail
E.ON UK tailors a wide range of products and services to meet
its customers’ individual energy requirements. In addition, we’re
committed to helping our customers improve the energy efficiency
of their homes, communities, and businesses. As part of this
effort, E.ON UK has installed insulation in over 350,000 customer
homes since 2006 and also conducted programs to promote
energy-efficient boilers and smart metering. Each of these measures
takes us one step closer to a low-carbon future. During 2009,
we also met customers face-to-face in several cities across the
U.K. at our Winter Advice Bureau, where we helped provide direct
advice on everything from choosing the right tariff to heating
homes in the most efficient manner.
We also continue to help in the fight against fuel poverty,
which is why E.ON UK has intensified efforts to identify and
help vulnerable customers. As well as direct support, we have
undertaken a special project that will study the best way to
help 100 consumers get out of fuel poverty over the course of
100 days. We believe that this will provide a unique insight into
how fuel poverty can be tackled through partnerships with other
organizations.
U.K. Market Unit Our Structure
Developing tomorrow’s technologies today
Cleaner coal can play an important role in the transition to a
low-carbon economy. That’s why we’re conducting and supporting
CCS research and development. If CCS is proven on a commercial
scale, it will enable us to continue to use coal—an abundant and
relatively cheap energy source—to generate electricity while
considerably reducing its carbon emissions and helping to keep
energy affordable. We also believe that microgeneration has a
bright future. Microgeneration refers to small-scale power and
heat technologies like micro wind turbines, biomass boilers,
micro CHP units, heat pumps, solar thermal heating, and solar
power. E.ON UK has formed partnerships with leading manufacturers
to develop these technologies.
You’ll find E.ON’s consolidated financial statements and related
commentary in our Financial Report.
Want to know more about our U.K. market unit?
eon-uk.com
Teaching old digs new tricks: pioneering E.ON 2016 House enters phase two
Homes produce 28 percent of the U.K.’s CO 2 . So to cut carbon significantly, they’ll have to be upgraded.
That’s where the E.ON 2016 House comes in. It’s a replica of an energy-inefficient, 1930sstyle
semi-detached home, and thanks to high-tech measuring and sensing equipment, it’s also a
cutting-edge research laboratory to investigate how a typical suburban home could be progressively
upgraded to reduce its carbon emissions to near zero, the standard the U.K. government has set
for new homes built after 2016. The three-year project entered its second phase in the summer of
2009. This involved installing a package of upgrades—including super insulation, double glazing, and
energy-efficient appliances and light b ulbs—aimed at cutting the home’s energy use by 25 percent.
There will be a second upgrade in the summer of 2010 aimed at reducing the home’s emissions impact
to zero. By identifying practical, cost-effective upgrades, the project will help demonstrate to
millions of homeowners how to use less energy, live sustainably, and save money on their utility bill.
61

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Our Structure Nordic Market Unit
Nordic
Market Unit
• Swedish government gives go-ahead for new nuclear power plants
• Nordic plans €6 billion in investments for 2006–2013
• Further promotion of biogas as a vehicle fuel
45%
Nuclear
Malmö
Total generation of 19 billion kWh by energy source
43%
Hydro
Europe
8%
Oil, natural gas
Information about our renewables operations is in the section of this
report on our Climate & Renewables market unit starting on page 76.
4%
Other
Håkan Buskhe
President and CEO, E.ON Sverige
2009 power sales
44.5 billion kWh
2009 gas sales
4.6 billion kWh
2009 sales
€3,348 million
2009 adjusted EBITDA
€851 million
2009 adjusted EBIT
€535 million
2009 cash-effective investments
€1,104 million
Employees at year-end 2009
5,570

Operations along the value chain
Power
Gas
The backbone of our upstream business in Northern
Europe is a climate-friendly generation fleet with over
6.8 GW of attributable capacity, just under 90 percent
of which is carbon-free nuclear and hydro. 1 We operate
regulated power, gas, and heat distribution systems
serving a total of about 1 million customer
accounts, mainly in southern and east-central Sweden.
In addition, we engage in power, gas, and heat retailing
and provide a full range of energy services. Malmöbased
E.ON Sverige is the lead company of our Nordic
market unit.
Nordic Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
1 As used in this report, the terms zero carbon and zero emission refer to power generation
operations only, not to a generating unit‘s entire lifecycle.
Matfors hydroelectric station: we have 6.8 GW of generation capacity
in Northern Europe, nearly 90 percent of it zero carbon.
Nordic energy market
Like markets in other parts of Europe, the Nordic energy market is
characterized by market integration, climate-protection policies,
and generation fleet renewal. Sweden, for example, has enacted
a range of measures to promote renewables, reduce carbon
emissions, and end its dependence on fossil fuels. In 2009, Sweden’s
coalition government lifted the ban on the construction of new
nuclear power plants (“NPPs”). New legislation also paves the
way for new reactors to be built to replace existing NPPs when
they have finished their economic service lives. Sweden’s renewables
and nuclear policies will enable it to extend its position
as a leading European supplier of clean, competitively priced energy.
E.ON Sverige is playing an active role in this process and is investing
€6 billion across its business in 2006–2013, about €1 billion
of which is to update and enlarge its generation capacity.
Generation
E.ON Sverige has stakes in all of Sweden’s existing NPPs, giving
it 2.8 GW of total attributable nuclear capacity. In 2009, E.ON Sverige
conducted a comprehensive update of unit 3 at Oskarshamn NPP
to enhance safety, increase output, and extend service life.
A capacity increase of unit 2 at Oskarshamn will be completed
in 2011. E.ON Sverige is currently exploring whether to replace
the oldest reactor at Oskarshamn at the end of its economic
service life.
63

64
Our Structure Nordic Market Unit
Biofuel racers: E.ON Sverige is convinced that biofuels have great
growth potential and sponsors a biofuel-powered race team.
90%
zero carbon.
Our Nordic generation fleet
plays an important role in helping
us achieve our climate-
protection targets.
Hydropower is a mainstay of our Nordic generation business.
E.ON Sverige owns or has stakes in approximately 80 hydroelectric
plants in Sweden with a total attributable capacity of
1.8 GW. Sweden is also the home of our new Hydro Fleet Management
Center, which is responsible for overseeing and enhancing
the performance of E.ON’s entire hydropower fleet.
E.ON Sverige also has 2.1 GW of conventional generation
capacity. In 2009, a technologically advanced 440 MW CCGT entered
service in Malmö. Thanks to its high efficiency and CHP capabilities,
it will reduce carbon emissions by 1 million metric tons
per year compared with the older conventional capacity it
replaced. A new high-tech waste-incineration combined-heatand-power
unit in Norrköping will enter service in 2010.
Operations in Finland combined
In October 2009, E.ON Sverige combined its operations in Finland into
a single organization under the E.ON banner. The move is part of an
effort to strengthen E.ON Sverige’s position in Finland, where it supplies
electricity to 113,000 customer accounts. E.ON is also co-owner of
a company called Fennovoima Oy which is filing for permission to
build a new nuclear power station in Finland, which would increase
the country’s supply of domestically produced zero-carbon electricity.

Power distribution
E.ON Sverige delivers electricity safely and reliably to about
1 million customer accounts in Sweden and Finland. Network infrastructure
in Northern Europe needs to be particularly robust in
order to minimize outages caused by the frequent snow, ice, and
strong winds. That’s why E.ON Sverige is conducting a major,
multi-year upgrade of its power distribution system in Sweden.
The upgrade calls for 17,000 km of overhead lines to be replaced
by underground cables or sturdier overhead lines. In 2009, another
3,250 km of lines were made more weather-resistant, leaving
just 2,200 km before the project is complete. The upgrade has
helped reduce weather-related outages by over 55 percent.
Improved network reliability lowers operating costs and increases
customer satisfaction.
Heating
District heating is common in Sweden. In Stockholm, for example,
it heats 90 percent of residential buildings. Currently, wellestablished
(and often municipally owned) incumbents dominate
the market. E.ON Sverige, which provides district heating to
38,000 customer accounts and is Sweden’s leading investor-owned
player, is pushing for more competition. It advocates nondiscriminatory
third-party access to Sweden’s heating network,
particularly in big urban areas like Stockholm. Greater competition
will create a more efficient, lower-cost heating market for consumers
and growth opportunities for our Nordic heating business.
Biogas
Locally produced, climate-neutral biogas can help cut carbon
emissions and reduce dependence on imported fossil fuels.
E.ON Sverige, which operates 15 biogas production plants, is
working with E.ON Climate & Renewables to develop our biogas
and biomethane business in Sweden. A new biomethane plant
opened in Falkenberg in March 2009. Its annual output has the
energy equivalent of 4 million liters of gasoline.
Growth prospects for biofuels are particularly good in the
vehicle-fuel segment. E.ON Sverige operates 30 of Sweden’s
100 fueling stations for biomethane vehicles. In 2009, it entered
into a cooperative arrangement with OKQ8, a major gas-station
chain, to build Sweden’s largest biomethane refueling network.
You’ll find E.ON’s consolidated financial statements and related
commentary in our Financial Report.
Want to know more about Nordic?
eon.se
Nordic Market Unit Our Structure
E.ON Sverige promotes sustainable cities
Not long ago, Västra Hamnen (West Harbor) was a dreary industrial
wasteland of rusting cranes and dilapidated docks. Today this harbor
district in Malmö is a shining example of innovative, sustainable
urban development. Its electricity and heat come almost entirely from
renewable sources (wind, solar, biomass, and a large groundwater
heat pump). Even its refuse is put to use: city buses run on biogas
produced at the local landfill. E.ON Sverige is an active partner in
Västra Hamnen and has invested a total of €7 million. The project
shows how companies and cities can work together to achieve what
were formerly considered mutually contradictory objectives: an expanding
economy and a shrinking carbon footprint. There’s a growing
list of cities implementing the Malmö paradigm, called Sustainable
City, with help from E.ON Sverige. They include Mora and Norrköping
(Sweden) as well as Copenhagen (Denmark), whose North Harbor is
being transformed into a sustainable residential area for 40,000 people.
65

66
Our Structure U.S. Midwest Market Unit
U.S. Midwest
Market Unit
• Technologically advanced Trimble County 2 generating unit to join fleet in 2010
• Agreement allows design phase of near-zero-emission FutureGen plant to continue
• State-of-the-art customer-service system goes live
98%
Coal
1%
Natural gas
Louisville
Total generation of 30.9 billion kWh by energy source
1%
Hydro
U.S. Midwest
Information about our renewables operations is in the section of this
report on our Climate & Renewables market unit starting on page 76.
Vic Staffieri
Chairman, CEO, and President, E.ON U.S.
2009 power sales
32.4 billion kWh
2009 gas sales
12.6 billion kWh
2009 sales
€1,843 million
2009 adjusted EBITDA
€552 million
2009 adjusted EBIT
€384 million
2009 cash-effective investments
€545 million
Employees at year-end 2009
3,119

Operations along the value chain
Our U.S. Midwest market unit primarily operates in the
regulated energy market in Kentucky. It consists of
two companies, Louisville Gas and Electric Company
(“LG&E”) and Kentucky Utilities Company (“KU”).
Together, LG&E and KU give us a significant genera tion
portfolio in Kentucky and supply 940,000 customers
with electricity and about 321,000 with natural gas.
A stable regulatory environment and a high degree of
market coverage give our business in Kentucky a solid
market position from which it can selectively seize
growth opportunities. Louisville-based E.ON U.S. is the
lead company of the U.S. Midwest market unit and
has consistently been recognized for its outstanding
customer service.
U.S. Midwest Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
Power
Gas 1
1 Regulated.
Un it 2 at Trimble County generating station: one of the most technologically
advanced coal-fired generating units in the U.S. will enter service in mid-2010.
U.S. energy market
America is in the process of making big changes to its energy
policy. In late June 2009, the U.S. House of Representatives
passed the American Clean Energy and Security Act of 2009. Its
major feature is a cap-and-trade system that sets a national cap
for CO 2 emissions and allocates tradable emission allowances.
By 2020, the emission cap would be 17 percent below 2005 levels.
The House law would also require utilities to meet 20 percent of
their electricity demand with renewables by 2020. Companion
legislation is currently in the U.S. Senate; the outcome is uncertain.
We believe more needs to be done to shield customers from
sharp price increases. That’s why we advocate modifying the near-
and medium-term emission caps and placing a ceiling on emission-allowance
costs. But we also need time to replace existing
generation capacity in a way that doesn’t create supply shortages
or put an unreasonable financial burden on our consumers.
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68
Our Structure U.S. Midwest Market Unit
Generation
E.ON U.S. is Kentucky’s largest power producer. Its ten generation
facilities have an aggregate attributable capacity of more than
7.5 GW. Its fuel mix is 5.3 GW coal and 2.2 GW natural gas. Over
the next three years, we’re investing €500 million to further
improve the environmental performance of our coal-fired plants,
primarily by installing flue-gas desulfurization and de-NO x equipment
and expanding on-site storage capacity for ash. We’re
also investing €200 million to conduct maintenance to enhance
plant availability.
New generation capacity
The key component of our organic growth strategy in Kentucky is
Trimble County 2, a new coal-fired generating unit. The 760 MW
unit, in which E.ON U.S. owns a 75-percent stake, will have a net
efficiency of 42 percent, making it one of the most technologically
advanced coal plants in the U.S. Trimble County 2 began limited
start-up testing in late 2009 and is scheduled to enter service in
mid-2010.
0.5 GW
of generation capacity
is what E.ON U.S. expects its
energy-efficiency programs to
save by 2015 if customers take
advantage of them.
Innovative clean-coal plant
The world’s first near-zero-emission coal-fired power plant is being designed
by the FutureGen Industrial Alliance, a consortium consisting of E.ON
U.S. and eight other energy and coal companies. The 275 MW plant will
cost approximately $1.5 billion (€1.1 billion) to build and will be sited in
Mattoon, Illinois. It will be an integrated gasification combined-cycle
Carbon capture and storage
Kentucky is America’s third-largest coal producer. About 95 percent
of its electricity is derived from coal. Coal is an abundant and
economic fuel. It’s also one of the largest sources of man-made
carbon emissions. We think new technology—most importantly,
carbon capture and storage (“CCS”)—could make coal cleaner so
that it can remain a viable option while we make the transition
to a truly sustainable energy system. That’s why E.ON U.S. supports
a variety of CCS research and development projects.
E.ON U.S. is a member of the FutureGen Industrial Alliance, a
public-private partnership whose mission is to build a commercialscale
coal-fired CCS power plant in Illinois. In September 2009,
the U.S. Department of Energy agreed to continue funding the
project’s design phase. Construction of this innovative plant could
now begin in 2010 (for more information, see the text box below).
E.ON U.S. has invested $1.5 million (€1.1 million) in the University
of Kentucky’s Center for Applied Energy Research to study
clean-coal technology. The center plans to build a 1 MW moveable
carbon-capture unit that could be tested at different power
stations. E.ON U.S. also supports the Western Kentucky Carbon
Storage Foundation, a non-profit organization that’s testing
carbon storage. So far, almost 300 metric tons of CO 2 have been
injected into a test well at depths of up to 2,200 meters.
20%
less CO 2
per kilowatt-hour of electricity
is expected to be emitted by our
new technologically advanced
coal-fired unit at Trimble County
power station.
unit in which carbon is captured before combustion, yielding hydrogen
as a clean fuel for generating electricity. FutureGen will generate enough
electricity to supply about 150,000 homes and also produce hydrogen
for other applications. Thanks to the U.S. Department of Energy’s agreement
to fund the remainder of the plant’s design phase through the end of 2009,
construction could begin in 2010.

Retail
In January 2009, E.ON U.S. reached a settlement in rate cases
involving LG&E and KU. The settlement foresees a roughly
$1 monthly rate reduction for a typical residential electricity
customer and a roughly $5 monthly rate increase for a typical
residential natural gas customer. The Kentucky Public Service
Commission (“KPSC”), the state’s utility regulator, approved the
settlement in February 2009. The gas rate increase enables
E.ON U.S. to recover some of the costs of improvements to its
natural gas system.
Demand-side energy efficiency
In 2008, the KPSC approved a regulatory filing that has enabled
E.ON U.S. to triple the amount of money it dedicates annually to
programs that increase residential and commercial customers’
energy efficiency and climate awareness. Key programs include
energy audits for residential and commercial customers along
with a special audit program for low-income customers; subsidized
maintenance of air-conditioners and heat pumps to ensure
efficient operating performance; incentives for builders to construct
new homes that meet U.S. government energy-efficiency
standards; and technical devices like programmable thermostats
and load-control switches that help reduce overall load during
peak demand.
In 2009, E.ON U.S. took additional action to promote energy
awareness among its customers and the general public. It
launched Smart Saver, a campaign of public-service advertisements
to encourage customers to take easy but effective steps
to reduce their energy usage. It also began a program to educate
future E.ON U.S. customers in elementary and middle schools on
the importance of energy efficiency and conservation. Educating
children can change how they use energy now and in the future,
and children can potentially influence the energy usage of their
parents and other family members.
You’ll find E.ON’s consolidated financial statements and related
commentary in our Financial Report.
Want to know more about U.S. Midwest?
eon-us.com
U.S. Midwest Market Unit Our Structure
End of leasing arrangement helps protect jobs in western Kentucky
In mid-July 2009, the maintenance and operation of four electric generating
units in western Kentucky returned from an E.ON U.S. subsidiary
to Big Rivers Electric Corporation. The leasing arrangement had
begun in July 1998 and was intended to last 25 years. Since then, the
energy market has changed significantly. The deal to terminate the
lease enables E.ON U.S. to end an arrangement that no longer makes
financial sense. It also provides new, affordable, longer-term power
agreements for two aluminum smelters, thereby helping to preserve
nearly 5,000 jobs in western Kentucky.
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70
Our Structure Energy Trading Market Unit
Düsseldorf
Energy Trading
Market Unit
• Strong performance amid global financial and economic crisis
• Single, integrated view of Europe’s energy markets enhances risk management
• Active at four new exchanges and hubs in Austria, France, Serbia, and Portugal
Trading volume by commodity
1,240.3 bn kWh
Electricity
69.1 mmt
Oil
1,497.8 bn kWh
Natural gas
223.2 mmt
Coal
Tony Cocker
CEO, E.ON Energy Trading
500.9 mmt
Carbon allowances
mmt = million metric tons
2009 sales
€41,251 million
2009 adjusted EBITDA
€961 million
2009 adjusted EBIT
€949 million
2009 cash-effective investments
€53 million
Employees at year-end 2009
1,075

Operations along the value chain
The Energy Trading market unit is the commercial
heart of the E.ON Group and one of Europe’s leading
energy trading businesses. As the link between E.ON
and the world’s wholesale energy markets, Energy
Trading buys and sells primarily electricity, natural gas,
coal, oil, and carbon allowances. Its trading activities
play a vital role in helping to ensure fair prices and
secure long-term energy supplies for millions of
customers across Europe. The lead company is E.ON
Energy Trading SE, Düsseldorf.
Energy Trading Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
Power 1
Gas 1
1 Other commodities traded: carbon allowances, oil, and coal.
Trader at work: E.ON Energy Trading is one of
Europe’s leading energy trading houses.
Managing risk, optimizing assets
E.ON Energy Trading’s primary responsibilities are to manage the
E.ON Group’s commodity risks (including commercial portfolios)
and to optimize E.ON’s asset base, one of the broadest and most
diverse in Europe. Within clearly defined limits and in accordance
with the highest standards of risk management, E.ON Energy
Trading also engages in proprietary trading. Its teams of highly
experienced traders work side by side, combining cross-commodity
and cross-market expertise. Our centralized approach, which
combines E.ON Energy Trading’s integrated market view with
our outstanding asset portfolio, enables us to better manage commodity
risk, maximize value from our assets, and create additional
growth.
71

72 Our Structure Energy Trading Market Unit
Strong performance in economic crisis
One key factor affecting trading operations in 2009 was the global
economic crisis, which resulted in sharp drops in all commodity
prices. Although the resulting uncertainty led to lower trading
volumes across some markets, overall energy markets remained
robust and continued to offer enough liquidity for efficient
risk management. Having a single, integrated view of risk across
different markets and regions is crucial, especially in volatile
markets where things move very quickly. Energy Trading, benefiting
from this integrated approach, delivered an excellent operating
performance while steering its way through the financial crisis.
Düsseldorf headquarters: our trading activities play
a vital role in helping to ensure fair prices and secure long-term
energy supplies for millions of customers.
Energy markets developments
Over the last few years, Europe’s national energy markets have
been steadily consolidating into multi-country market regions. This
ongoing liberalization, which helps markets become more liquid,
prices more transparent, and risks more quantifiable, benefits
the European economy and European consumers. Efficient markets
are vital, because they will help to encourage the right investments
in the next generation of energy infrastructure.
New infrastructure—interconnector cables and pipelines, crossborder
transfer capacity, and LNG regasification terminals—is
continually improving the physical interconnection between
European markets. Market coupling, which involves the legal and
technical combination of two or more market areas, facilitates
cross-border trading and thus fosters market integration. Market
coupling between the German and Nordic markets began in
December 2009. In August 2009, the day-ahead power markets of
the Czech Republic and Slovakia were combined, resulting in
a quadrupling of liquidity on the first day of trading. Plans call for
the power markets of Germany, France, Belgium, the Netherlands,
and Luxemburg to be combined in 2010. The liberalization process
also continues, primarily through the unbundling of transmission
infrastructure.
Only prices th at are determined by fair, open, and
liquid markets will ensure secure energy
supplies at reasonable prices well into the future.
Market convergence and liberalization have created new opportunities
for securing energy supplies and growing our business.
As markets emerge from the global economic and financial crisis,
it’s more important than ever for energy markets to become
more integrated and more open. E.ON Energy Trading supports
E.ON’s market vision by working closely with policymakers and
regulators on measures to ensure that this process continues. This
includes playing an active role in designing market-coupling
arrangements, capacity auctions, allocations, and market balancing.

E.ON Energy Trading has trading activities in over 40 countries worldwide
and at all major European Energy exchanges.
Coal
Power
N2EX
EPEX Spot/Powernext
OMEL COG
OMIP
APX/Endex
NBP/IPE
TTF
UKPX
Zeebrugge
Belpex
PEG Nord
PEG Est
PEG Ouest
Oil
PEG Sud
Nord Pool
NCG (notional)/EEX
OTE/PXE
PSV
IPEX
EXAA
Energy Trading Market Unit Our Structure
CEGH
Gas
Gielda Energii
Borzen/South Pool
Carbon
allowances
73

74
Our Structure Energy Trading Market Unit
Exchanges and hubs
E.ON Energy Trading has trading activities in over 40 countries
worldwide and at all major European Energy exchanges. Energy
exchanges and hubs will continue to play a vital role in integrating
Europe’s energy markets, which will support efficiency and
increase liquidity.
E.ON Energy Trading registered to trade at several new
exchanges and hubs in 2009, including the Central European Gas
Hub (“CEGH”) in Austria, N2EX (United Kingdom), South Pool
(a spot power market for Slovenia and Serbia), and OMIP (a power
exchange in Portugal for the Iberian market). In addition, it places
trading volume or acts as market maker to support the development
of a number of hubs and exchanges across Europe, including
in France, Italy, Spain, and Germany. Through its activities
in these marketplaces, E.ON Energy Trading actively supports E.ON’s
vision of integrated, open markets. For example, trading points
like NetConnect Germany (“NCG”) and CEGH are showing solid
liquidity growth and form a link between the markets of Southeastern
and Northwestern Europe.
The creation of new exchanges reflects the emergence of
larger, multi-country energy markets. Ultimately, not all of these
exchanges will survive, and we believe the market—and energy
consumers—would benefit from further consolidation, which would
result in fewer exchanges, each with a broader geographic scope.
Recognized trading experts
Energy Trading’s international team brings together about 1,000 professionals
from more than 45 countries around the world. They’re
recognized as experts throughout Europe’s energy industry. They come
from a wide range of backgrounds but share a commitment to
excellent performance, bold decision-making, and knowledge sharing.
E.ON Energy Trading attracts and retains industry-leading talent from
around the world because it fosters a culture of openness, rewards
success, and actively supports its employees’ development.
You’ll find E.ON’s consolidated financial statements and related
commentary in our Financial Report.
Want to know more about our Energy Trading market unit?
eon-energy-trading.com

New Markets.
Solid, integrated.
We created four new E.ON market units in 2008:
Climate & Renewables, Russia, Italy, and Spain. For reasons
of materiality, their results are combined in a single
reporting segment called New Markets.
New Markets Our Structure
75
New Markets (aggregate):
2009 power sales
123.6 billion kWh
2009 gas sales
25.7 billion kWh
2009 sales
€7,749 million
2009 adjusted EBITDA
€1,544 million
2009 adjusted EBIT
€862 million
2009 cash-effective investments
€1,881 million
Employees at year-end 2009
7,976

76 Our Structure Climate & Renewables Market Unit
Climate & Renewables
Market Unit
• 50 percent increase in renewables capacity in 2009
• Offshore wind farms in U.K. and North Sea begin generating electricity
• Solar business grows through acquisitions, joint ventures, and new build
96%
Wind
4%
Other
Düsseldorf
Owned generation of 5.2 billion kWh by energy source 1
1 Climate & Renewables does not operate large-scale hydroelectric plants.
Frank Mastiaux
CEO, E.ON Climate & Renewables
2009 power sales
6.4 billion kWh
2009 sales
€466 million
2009 adjusted EBITDA
€294 million
2009 adjusted EBIT
€146 million
2009 cash-effective investments
€1,031 million
Employees at year-end 2009
632

Operations along the value chain
Power
The Climate & Renewables market unit is responsible for
developing and managing our global renewables and
carbon-sourcing activities. While onshore wind energy
is the dominant driver of our portfolio, offshore wind
is increasingly gaining importance. We’re also expanding
our engagement in solar energy as the second key
area of our renewables portfolio. We commissioned our
first solar farm, located in France, and also entered the
concentrated solar power (“CSP”) business. In addition,
we’re active in biomass, biomethane, and marine
energies. E.ON Climate & Renewables, Düsseldorf, is the
lead company of the Climate & Renewables market unit.
Climate & Renewables Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
Onshore wind farm: with about 3 GW of installed capacity,
E.ON ranks among the world’s top renewables players.
Boutique to in dustrial
We’re investing about €8 billion in the period 2007–2011 to grow
our renewables business. We focus on the most attractive markets
and technologies and had around 3 GW of renewables capacity
at year-end 2009, ranking among the world’s leading renewables
players. Through continued strong growth in our core markets
in the United States and Europe, we intend to increase our installed
capacity to 10 GW by 2015. By 2030, our plans call for renewables
to account for about one third of the E.ON Group’s installed
capacity and be our single biggest energy source.
Our renewables strategy is to scale up renewables from
boutique to industrial along the entire value chain: development,
procurement, construction, and operations and maintenance
(“O&M”). Between 2007 and 2009, the average size of our wind
farms increased from 15 to 75 MW, and our average turbine
capacity increased from 1.4 to 1.9 MW. Larger facilities and turbines
will yield significant economies of scale. But the biggest value
levers in the renewables business are procurement, construction,
and O&M. Here, too, we’re adopting an industrial-scale approach.
Bulk buying reduces transaction costs and yields economies of
scale. In November 2009, we signed a seven-year O&M agreement
for our 529 1.5 MW turbines in the U.S. These agreements will
help us reduce costs and increase performance, so that we can grow
our renewables business while enhancing its profitability.
77

78
Our Structure Climate & Renewables Market Unit
Onshore wind
Onshore wind is the most mature and economic renewables
technology and accounts for more than 93 percent of our current
installed renewables capacity. Our main onshore presence is
in the U.S., Spain, and Italy. The U.S. market continues to offer
excellent growth potential thanks to a high wind yield, large open
spaces, and a favorable regulatory environment. Three E.ON
onshore wind farms entered service in the U.S. in 2009: Panther
Creek and Roscoe in Texas and Stony Creek in Pennsylvania. At
782 MW, Roscoe is currently the world’s largest wind farm. New
wind farms in Spain and Portugal accounted for most of the
growth in our European onshore portfolio in 2009.
Offshore wind
With 113 MW in operation in the U.K., Denmark, and Germany
and more than 4 GW of projects under construction and development,
we have a leading position in offshore wind.
Robin Rigg, a 180 MW offshore wind farm in northwestern
Britain, began exporting electricity to the mainland in September
2009 and will be completed in 2010. Alpha ventus, a 60 MW
deep-water wind farm in the German North Sea, began generating
electricity in August 2009 and was completed in March 2010.
Construction moved forward on Rödsand II, a 207 MW offshore
wind farm in the Baltic Sea. Rödsand II is scheduled to begin
exporting electricity in the fall of 2010.
In partnership with Dong Energy of Denmark and Masdar
of Abu Dhabi, we’re building London Array, the world’s largest
offshore wind project. It will be located in the outer Thames
estuary about 20 km from the southeast coast of England. The
first phase will have a capacity of 630 MW and is scheduled to be
completed at the end of 2012. When the second phase becomes
operational, London Array will have a total capacity of 1 GW.
Making blue energy green:
agreement with environmental organization
Offshore technologies—wind, wave, and tidal stream—are an increasingly
important component of our renewables portfolio. Because we
believe in developing our offshore business with as little impact as
possible on the marine ecosystem, we’ve teamed up with the International
Union for Conservation of Nature and Natural Resources (“IUCN”).
The IUCN is the world’s oldest and largest global environmental
Sunny prospects: E.ON part of the Desertec Industrial Initiative
It may sound utopian, but experts agree it’s feasible: using the sun-
drenched deserts of North Africa as source of electricity for Europe. In
July 2009, E.ON and 11 other large corporations signed an agreement
to establish the Desertec Industrial Initiative. The objective of the
initiative is to analyze and develop the technical, economic, political,
social, and ecological framework for large-scale solar power generation
in North Africa. If everything goes according to plan, the €400 billion
project could provide about 15 percent of Europe’s electricity by 2050.
In addition, the producer countries will use a significant share of the
power Desertec generates to meet their own energy needs.
Solar
Solar energy has enormous potential as a resource. The sunlight
hitting just 1,000 square km of desert would meet humans’ entire
primary energy needs. At the current rate of technology refinement,
solar will achieve cost parity with wind in the next five to ten
years. Our objective is to develop solar to be the second key area
of our renewables business alongside wind.
In 2009, our solar business achieved several milestones. In July,
E.ON Climate & Renewables completed construction of its first
photovoltaic (“PV”) farm, located in Le Lauzet in southern France,
and also acquired Conilhac, a PV developer with a significant
pipeline of projects in southern France. It also entered into a joint
venture with Abengoa, Spain’s market leader in CSP, to build
two 50 MW CSP plants in Andalucia in southern Spain.
We’re also looking much further ahead. In June 2009, we became
a founding member of a consortium for a visionary project.
Called Desertec, the project will use the sun-drenched, windswept
deserts of North Africa as the site for large-scale solar
and wind farms to generate electricity for Europe. If everything
goes according to plan, this €400 billion project could provide up
to 15 percent of Europe’s electricity by 2050 (see textbox).
network, bringing together more than 1,000 government agencies and
non-governmental organizations and almost 11,000 volunteer scientists.
Called “Making Blue Energy Green,” our joint project with the
IUCN is designed to assess and minimize the potential environmental
impact of the construction of new offshore power production facilities.
The project is part of our commitment to work closely with environmental
organizations and con servationists to develop sustainable solutions
for renewable energies.

Biomass
Biomass is another component of our renewables portfolio.
E.ON Climate & Renewables owns and operates Steven’s Croft,
a 44 MW wood-burning power station in Lockerbie, Scotland.
The facility, which is one of the U.K.’s largest dedicated biomass
plants, generates enough electricity to power 70,000 homes
and displaces 140,000 metric tons of CO 2 . We have 400 MW of
biomass projects at various stages of development.
Biomethane
We’re also a leader in biomethane production. Our plant in
Schwandorf in southeast Germany, which became operational
in 2008, produces biogas from energy crops, upgrades it to
pipeline quality, and injects it into the local natural-gas network.
We added two new plants in 2009, increasing our biomethane
capacity in Germany to more than 40 million cubic meters per year,
enough to provide almost 13,000 homes with a renewable, local,
climate-neutral supply of gas. The German government aims for
biomethane to meet 10 percent of the country’s natural gas
needs by 2020. Our project pipeline of 200 million cubic meters
positions us to be a pacesetter in this fast-growing business.
Climate & Renewables market unit: generation assets
1,720 MW
North America
Wind
245 MW
U.K.
Wind
Biomass
396 MW
Iberia
Wind
Biogas
Small hydro
Climate & Renewables Market Unit Our Structure
Carbon sourcing
E.ON Climate & Renewables also manages our global carbon
sourcing business, which encompasses Clean Development
Mechanism (“CDM”) and Joint Implementation (“JI”) projects
as defined in Articles 12 and 6 of the Kyoto Protocol. In CDM
projects, credits are earned through emission reductions in
developing countries; in JI projects, through emission reductions in
industrialized countries. E.ON Climate & Renewables leverages
E.ON’s deep energy expertise in developing JI/CDM projects in
its focus regions of Southeast Asia, the Middle East, North Africa,
and Russia (see text box on page 82). An example of this is our
partnership with Bionersis to develop CDM projects in Southeast
Asia to capture landfill gas and use it to generate electricity.
You’ll find E.ON’s consolidated financial statements and related
commentary in our 2009 Financial Report.
Want to know more about Climate & Renewables?
eon.com/renewables
52 MW
Nordic
Wind
278 MW
Italy
Wind
208 MW
Germany
Wind
Biogas
58 MW
Europe (other)
Wind
79

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Our Structure Russia Market Unit
Russia
Market Unit
• Progress made on new-build program to add 2.3 GW of generation capacity
• Russian power-market liberalization on schedule for completion in 2011
83%
Natural gas
Moscow
Owned generation of 53.9 billion kWh by energy source
17%
Coal
Sergei A. Tazin
CEO, E.ON Russia Power
2009 power sales
57.3 billion kWh
2009 sales
€973 million
2009 adjusted EBITDA
€203 million
2009 adjusted EBIT
€73 million
2009 cash-effective investments
€403 million
Employees at year-end 2009
4,694

Operations along the value chain
Our business in Russia is all about power: generation,
sales to industrial customers, and wholesale marketing.
Our Russian generation fleet—the third-biggest in our
company after Germany and the U.K.—consists of a
strong and regionally diverse portfolio of gas-fired and
coal-fired power stations with a total capacity of
8.3 GW. Our Russian assets are located in several key
industrial regions: Central Russia, Ural, and Siberia.
This gives us a superb platform with significant potential
for value creation in the world’s fourth-biggest electricity
market. We’re enlarging our Russian fleet—while
significantly reducing its overall carbon intensity—by
building five new high-efficiency generating units at
our existing power stations. This will increase our total
generation capacity to 11 GW after the successful
completion of our investment program. The lead company
of the Russia market unit is E.ON Russia Power,
which has its headquarters in Moscow.
Russia Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
Power 1
1 Wholesale only.
Shaturskaya power station: We have 8.3 GW of generation capacity
in Russia, the world’s fourth-largest electricity market.
Russian power market
The liberalization of Russia’s wholesale power market is moving
forward on schedule. Despite the severity of the recession
(the Russian economy contracted by over 8 percent in 2009), the
government hasn’t strayed from its liberalization course. The
share of electricity sold to industrial and commercial customers
on a free-market basis has increased according to plan: 30 percent
in the first half 2009, 50 percent in the second half of 2009,
and 80 percent in the second half of 2010. It’s expected to rise incrementally
to 100 percent in 2011.
The Russian economy is expected to begin to recover in 2010
and return to moderate growth in the years ahead. With new
generating units nearing completion, we’re well positioned to
benefit from the anticipated rise in power consumption and
from the capacity market’s free-market treatment of new assets.
81

82
Our Structure Russia Market Unit
Surgutskaya 2 power station: at 4.7 GW, it’s the biggest power station in Eurasia and one of the biggest in the world.
Generation
Through its 78.3-percent stake in power producer OGK-4, E.ON
Russia Power has 8.3 GW of modern, efficient generation capacity.
This amounts to 4 percent of the country’s total capacity and
6 percent of its thermal capacity. OGK-4’s average load factor of
71 percent ranks it among the top Russian power producers. In
terms of efficiency and availability, our Russian power plants are
well positioned compared with the E.ON Group generation fleet.
The quality of our Russian asset portfolio gives us a competitive
advantage, particularly in tough times. Due to the recession,
Russia consumed 5 percent less power in 2009 than in 2008. But
thanks to the efficiency of our assets and their location in regions
where consumption has remained firm, OGK-4 recorded only a
slight decline in sales volume. To extend this advantage, in 2009
E.ON Russia Power launched a program to further enhance
efficiency in operations and maintenance.
New-build projects
We’re building four high-efficiency combined-cycle gas turbines
(“CCGTs”) and one lignite-fired generating unit at four of our
existing power stations. One of the CCGTs is scheduled to enter
service in 2010, three in 2011. The new lignite unit is expected
to enter service in 2013.
These projects have benefited from the E.ON Group’s industryleading
expertise in fossil generation. Engineers and project
managers from across E.ON have been working closely with their
Russian colleagues during a number of phases of the projects
to develop technical solutions and share best practices. We plan
to provide the crew who will be assigned to the new units with
special training to ensure E.ON operational best practices.
Our new-build program will also make a significant contribution
to climate protection in Russia. The technologically advanced
CCGTs will consume 40 percent less fuel than older plants. Once
all four new CCGTs are operational, we expect them to cut carbon
emissions by an aggregate 4.3 million metric tons through the
JI, CCGT, ERU: together they spell “climate protection”
Under the Kyoto Protocol, industrialized countries with an emissionreduction
commitment (“Annex 1 countries,” in carbon jargon) can invest
in projects that reduce carbon emissions in another Annex 1
country and apply the projects’ Emission Reduction Units (“ERUs”) to
its own target. This arrangement is called Joint Implementation (“JI”).
Because the four new CCGTs we’re building in Russia are so much
more efficient than the Russian industry average, they qualify as JI
projects. They’ll start generating ERUs the moment they start generating
electricity. We can apply these ERUs—about 4.3 million metric tons of
CO 2 through 2012 once all four CCGTs are operational—to our operations
affected by the EU’s emissions-trading scheme.

Russia market unit: generation assets
Smolenskaya
579 MW
Shaturskaya
1,017 MW
Yaivinskaya
568 MW
Surgutskaya 2
4,686 MW
Berezovskaya
1,418 MW
end of 2012 (this is how long they will be part of a Joint Implementation
project). Electricity produced by the new high-efficiency
units will replace electricity that, in their absence, would be generated
using less efficient technology.
Power and heat sales
As a major generator, OGK-4 is one of the key players in Russia’s
wholesale power market. Its power sales meet just over 5 percent
of the country’s total demand. OGK-4 sells power under regulated
agreements with industrial customers and on the unregulated
day-ahead market. OKG-4 markets its generation capacity under
regulated agreements and on the unregulated capacity market.
Since a number of our plants in Russia cogenerate heat, OGK-4 also
markets heat to district-heating systems and industrial
customers near these plants.
You’ll find E.ON’s consolidated financial statements and related
commentary in our Financial Report.
Want to know more about our Russia market unit?
eon-russia.com
Russia Market Unit Our Structure
Gas-fired power station
Coal-fired power station
Capacity increase at Surgutskaya 2
At 4.7 GW of capacity, Surgutskaya 2 power station is the biggest in
Eurasia and one of the biggest in the world. It already accounts for
60 percent of our total capacity in Russia and is a workhorse of the
Siberian power system. In 2009, we moved forward with the construction
of two new high-efficiency CCGTs. When they enter service in 2011,
they’ll increase Surgutskaya 2’s capacity to 5.4 GW, making it as big as
five of our large-scale coal-fired power stations in Western Europe.
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Our Structure Italy Market Unit
Italy
Market Unit
• Modernization program of our Italian generation fleet continues
• Full acquisition of MPE Energia strengthens sales business
• New Scandale CCGT to enter service in the first half of 2010
60%
Oil, natural gas
Milan
27%
Coal
Europe
Owned generation of 16.5 billion kWh by energy source
13%
Hydro
Information about our renewables operations is in the section of this
report on our Climate & Renewables market unit starting on page 76.
Klaus Schäfer
CEO, E.ON Italia
2009 power sales
44.2 billion kWh
2009 gas sales
25.7 billion kWh
2009 sales
€4,964 million
2009 adjusted EBITDA
€821 million
2009 adjusted EBIT
€540 million
2009 cash-effective investments
€172 million
Employees at year-end 2009
1,436

Operations along the value chain
Our core businesses in Italy are power generation and
energy sales. We have 5.6 GW of installed capacity
in Italy, making us the country’s fourth-largest power
producer. We rank number four in power sales and
number six in gas sales. We also operate a gas distribution
business with about 600,000 customer accounts,
primarily in northern Italy. Our main operating companies
in Italy are E.ON Produzione (generation), E.ON
Energia (marketing), and E.ON Rete (distribution).
E.ON Italia, Milan, is the lead company of our Italian
market unit.
Italy Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
Power 1
Gas 1
1 To be transferred to Energy Trading.
Tavazzano power station: our 5.6 GW of capacity make us
Italy’s fourth-biggest power producer.
Italian power market
Italy is Europe’s fourth-largest power market. Having phased
out nuclear power in the late 1980s, Italy—and its electricity
industry—are highly dependent on natural gas. As a result, electricity
prices in Italy are significantly higher than in countries
with a broader fuel mix. In 2009, Italy reversed its nuclear policy.
The government aims for nuclear power to meet 25 percent of
Italy’s future energy needs. The Italian parliament passed legislation
codifying the government’s target and committing itself,
in 2010, to establish a legal framework for the construction and
operation of nuclear power stations. Nuclear power would make
Italy’s energy supply more affordable, climate-friendly, and
secure. As Europe’s second-largest operator of nuclear assets,
E.ON is monitoring these developments with interest.
Italian regulatory environment
The Italian parliament raised the special tax surcharge on utility
company profits a further percentage point to 6.5 percent. In
addition, it responded to the recession with several pieces of
legislation aimed at reducing energy bills for households and
businesses, including an anti-crisis law. This law contains regulatory
measures that exempt a portion of the generation capacity
of selected power plants from market mechanisms. It’s unclear
whether these measures will actually help reduce energy prices for
consumers. It is clear that they create regulatory uncertainty,
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Our Structure Italy Market Unit
Italy market unit: generation assets
Tavazzano
1,740 MW
Livorno Ferraris 3
805 MW
Fiume Santo
912 MW
Trapani
170 MW
CCGT power station
Hydro power station
1 E.ON‘s stake: 58.4 percent; accounted for as an associated company.
2 E.ON‘s stake: 50 percent; accounted for as an associated company;
will become operational in 2010.
3 E.ON‘s stake: 75 percent.
CET 1
143 MW
Gas-fired power station
Coal-fired power station
which makes planning—particularly investment planning—difficult
for energy companies. E.ON Italia is in intensive dialog with
policymakers and regulatory agencies to try to reestablish a stable
regulatory environment.
A new CCGT plus hydro upgrade projects
will increase the capacity of our Italian generation fleet
while reducing its carbon intensity.
Ostiglia
1,450 MW
CEF 1
142 MW
Terni
530 MW
Scandale 2
814 MW
Information about our renewables operations is in the section of this report
on our Climate & Renewables market unit starting on page 76.
Generation
Through new builds and upgrades, we’re continually improving
our Italian generation fleet’s efficiency and environmental
performance. A new 800 MW CCGT in Scandale (Calabria), jointly
owned with Milan-based A2A, will enter service in the first
half of 2010. Our hydroelectric stations in Umbria are undergoing
a comprehensive two-year technical upgrade program, to be
completed in 2010, that will enhance their efficiency and extend
their operating lives. The CCGT and hydro projects will increase
the capacity of our Italian fleet while reducing its carbon intensity.

Our plan to build a 400 MW coal-fired unit in Fiume Santo (Sardinia)
reached an important milestone in 2009: the environmental-
impact assessment conducted by the Ministry of Environment
came to a positive conclusion. In late 2009, we also received
regulatory approval to co-fire up to 5 percent biomass at our coalfired
power station in Fiume Santo, making a portion of its output
climate-neutral.
We benchmark our power plants’ performance and share
best practices across our company so that we can fully leverage
our expertise in generation. Our Italian power plants participated
in these programs for the first time in 2009. E.ON Italia swiftly
launched projects to address areas (like operations and maintenance)
where potential had been identified to further improve
plant performance.
Energy marketing
E.ON Energia, our energy sales arm in Italy, markets power and
gas products to all customer segments. It’s Italy’s fourth-biggest
power marketer and sixth-biggest gas marketer. In April 2009,
we acquired the remaining 50-percent stake in MPE Energia, a
power marketing company that focuses on small and mediumsized
enterprises (“SME”). MPE was integrated into E.ON Energia
at the start of 2010.
E.ON Energia revamped its product portfolio in 2009 and
added a number of innovative offerings. These include dual-fuel
products, green-energy products, and an assurance product
that covers a customer’s energy bill in the case of unemployment
or severe illness. More customers joined E.ON Energia’s loyalty
program, which also rewards customers for becoming more energy
efficient. E.ON Energia’s focus going forward will be on achieving
volume growth, mainly in the attractive SME segment, and on
optimizing its sales processes.
Gas distribution
In December 2009, we combined our five formerly independent
gas distribution companies in Italy into a single entity called
E.ON Rete. It operates 9,500 km of pipelines and delivers natural
gas safely and reliably to about 600,000 customer accounts,
mainly in northern Italy. The merger will unlock operational
synergies and qualify E.ON Rete for regulatory incentives designed
to promote the formation of larger distribution companies.
You’ll find E.ON’s consolidated financial statements and related
commentary in our Financial Report.
Want to know more about our Italy market unit?
eon.it
Italy Market Unit Our Structure
Investing in hydroelectricity
The Terni hydro plant group was an important focus of E.ON Italia’s
investment program in 2009. A comprehensive technical upgrade
program, to be concluded in 2011, will enhance efficiency and extend
the operating lives of 26 units at a total of 11 hydro plants. The upgrade,
which will cost about €190 million, encompasses new turbines, generators,
and automated control systems. Together, the Terni plants produce
enough zero-carbon electricity to supply 500,000 homes. They’re
located on three rivers (Tiber, Velino, and Nera) in central Italy.
Enhancing safety
One of E.ON Italia’s top priorities in 2009 was to improve its safety
culture. It conducted a year-long safety-awareness campaign and, in
October, held a companywide Safety Week consisting of workshops
for safety managers and events and discussions for all employees.
E .ON Italia has also made safety performance a key criterion for
selecting suppliers. Its safety program will continue in 2010 focusing
on cultural change and training (page 27 has information about other
E.ON safety-training programs).
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Our Structure Spain Market Unit
Spain
Market Unit
• Solid first full year of operations
• New high-efficiency CCGT begins operational testing and will enter service in 2010
• Teamwork on LNG sourcing with E.ON Ruhrgas
52%
Natural gas
Madrid
39%
Coal
9%
Hydro
Europe
Owned generation of 12.2 billion kWh by energy source
Information about our renewables operations is in the section of this
report on our Climate & Renewables market unit starting on page 76.
Miguel Antoñanzas
Chairman and CEO, E.ON España
2009 power Sales
15.7 billion kWh
2009 sales
€1,346 million
2009 adjusted EBITDA
€227 million
2009 adjusted EBIT
€103 million
2009 cash-effective Investments
€275 million
Employees at year-end 2009
1,214

Operations along the value chain
We’ve been in Spain less than two years but have
already established a solid market position. With 3.4 GW
of installed capacity, we’re now the fourth-biggest
power producer in Spain’s ordinary-regime wholesale
market and have a market share of about 5 percent.
In 2010, the addition of a new 800 MW CCGT in Algeciras
will increase our generation portfolio to 4.2 GW. On
the infrastructure side, we operate a regulated distribution
business that delivers electricity safely and
reliably to 670,000 customer accounts. Our retail businesses
supply electricity to 20,000 large and small
business customers nationwide and to 580,000 regulated
residential customers in northern Spain. Our objective
is to build on these positions to become one of Spain’s
leading energy players. Madrid-based E.ON España is
the lead company of our Spain market unit.
Spain Market Unit Our Structure
Generation/Production Transmission/Wholesale Trading/Supply Distribution Retail/Sales
Power 1 2
1 To be transferred to Energy Trading. 2 Regulated.
Escatrón power station: with 3.4 GW of capacity,
we’re Spain’s fourth-biggest power producer.
Spanish electricity market
Spain’s electricity market is the fifth largest in Europe. Its growth
rate has typically been well above the European average. But
the global economic crisis hit Spain’s economy hard, particularly
the real-estate and construction sectors. As a result, Spain consumed
4.5 percent less electricity in 2009 than in 2008. Nevertheless,
forecasts call for electricity demand to gradually recover
over the next year and begin to grow by about 2 percent per year
starting in 2011.
Spain’s regulated residential segment has long had low prices
that don’t reflect the true costs of electricity. This is now changing.
In 2009, the Spanish government began a multi-year process of
gradually raising electricity prices in order to narrow and ultimately
eliminate the gap between costs and regulated prices. The gradual
elimination of the price gap will help create a more transparent
and competitive electricity market and will open up new business
opportunities for E.ON in Spain. By pooling our strengths—
E.ON España’s local expertise and the E.ON Group’s broad international
experience—we aim to seize these opportunities to grow
our Spanish business.
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Our Structure Spain Market Unit
Generation
Our Spanish generation fleet consists of 3.4 GW of capacity at
facilities located across the country. The fuel mix is 43 percent coal,
36 percent natural gas, and 21 percent hydro managed by E.ON
Generación. Renewables like wind, solar, and micro hydro are managed
by our Climate & Renewables market unit and are therefore
not reported in this chapter (for more information see page 76).
2009 was a successful year for our Spanish fleet. Its environmental
performance was enhanced when Los Barrios coal-fired
power station returned to service early in the year after being
retrofitted with state-of-the-art desulfurization equipment. It made
important progress in its new-build program and was also successful
operationally. E.ON España partnered with our gas subsidiary,
E.ON Ruhrgas, to secure competitivly priced LNG for its
gas-fired plants (see text box). This was one of several factors that
increased E.ON España’s load factor to a very high level. At times,
E.ON power plants provided 10 percent of Spain’s electricity. This
is a superb example of how our international organization can
create value in our markets.
Teamwork leads to high load factor for Spanish gas-fired fleet
The recession has created challenges. But also opportunities. With
demand down sharply, there was a global oversupply of natural gas
in 2009. Teamwork between our gas subsidiary, E.ON Ruhrgas, and
E.ON España enabled us to seize this opportunity to create value in
our Spanish business. E.ON Ruhrgas procured four shiploads of LNG
on the spot market for our gas-fired generating units in Spain. This
additional fuel enabled these units to achieve an average load factor
of about 60 percent, a very high figure for the Spanish market. At
times, E.ON power plants were generating fully 10 percent of Spain’s
electricity. We believe this partnership will give our Spanish business
a similar competitive advantage in gas procurement going forward.
New generation capacity
Our program to add high-efficiency fossil-fueled capacity is moving
forward on schedule. A technologically advanced 800 MW CCGT,
located in Algeciras on Spain’s southern coast, began operational
testing in late 2009 and will enter service in mid-2010. It will
increase our total capacity in Spain to 4.2 GW.
Distribution
Through E.ON Distribución, our Spain market unit owns and
operates a technologically advanced power distribution system
with a total length of 22,000 km in the northern Spanish provinces
of Asturias, Castilla-León, Galicia, and Cantabria. It also owns
just under 55 percent of Begasa, a company that operates a
8,700 km power distribution system in the northwest province of
Galicia. Together, our two distributors serve 670,000 customers.
Our power distribution business consistently outperforms the
Spanish industry average for service quality (as measured by
the frequency and duration of supply interruptions). In 2009, we
had an outstanding year operationally and achieved best-inclass
status. We’re making the investments in infrastructure and
technology that will enable us to continue to further enhance
our service quality and enable our customers to increase their
energy efficiency.
The 157,000 smart meters we’ve already installed in Spain
are helping customers use energy more efficiently.
Five times that many will be installed over the next four years.
The key energy-efficiency technology is smart metering. Our
power distributors have led the transition to smart meters in Spain.
With over 157,000 smart meters already installed and detailed
plans to add 752,000 over the next four years, we’ll finish the rollout
well ahead of the statutory deadline. By 2014, all E.ON Distribución
customers will have smart meters, enabling them to monitor
their energy usage.
670,000
customers
receive reliable electricity service
from E.ON Distribución, our
distribution company in Spain.

Retail
E.ON Energía, a subsidiary of E.ON España, primarily supplies I&C
and SME customers. In 2009, E.ON Energía raised its sales volume to
2.6 billion kWh and now serves 20,000 business customers across
Spain. Another subsidiary, E.ON Comercializadora de Último Recurso,
supplies electricity to 580,000 residential customer accounts.
The Spanish electricity market is moving incrementally towards
full deregulation. In 2012, all customers—including residential
customers—will be able to choose their electricity supplier. E.ON
España’s job going forward will be to design a palette of products
and services that will enable us to retain our current regulated
customers and to grow our retail business by attracting new
customers from other suppliers.
Spain market unit: generation assets
Navia
150 MW
Picos
160 MW
Puente Nuevo
320 MW
Bahía de Algeciras
800 MW planned
Los Barrios
570 MW
Hydro power station
Coal-fired power station
CCGT power station
Spain Market Unit Our Structure
You’ll find E.ON’s consolidated financial statements and related
commentary in our Financial Report.
Want to know more about our Spain market unit?
eon-espana.com
Aguayo
360 MW
Cercs
160 MW
Tarragona
400 MW
Escatrón
800 MW
Escucha
160 MW
Puertollano
220 MW
Information about our renewables operations is in the section of this
report on our Climate & Renewables market unit starting on page 76.
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Roloff (page 55), Peter Schaffrath (page 74), Siemens/E.ON (page 17), Hans-Peter Strauß (pages 10, 52), Charlotte Strömwall
(page 62), Gavin Young (page 14), Ekkehard Winkler/Andreas Zelles (page 17), Andreas Zelles (page 53),
Urban Zintel (page 50), Alexander Zhuchkov (page 81)
This Company Report was printed on paper produced from fiber that comes from a responsibly
managed forest certified by the Forest Stewardship Council.
This Company Report may contain forward-looking statements based on current assumptions and
forecasts made by E.ON Group management and other information currently available to E.ON. Various
known and unknown risks, uncertainties, and other factors could lead to material differences
between the actual future results, financial situation, development or performance of the company
and the estimates given here. E.ON AG does not intend, and does not assume any liability whatsoever,
to update these forward-looking statements or to conform them to future events or developments.
Only the German version of this Company Report is legally binding.

Financial Calendar
May 6, 2010 2010 Annual Shareholders Meeting
May 7, 2010 Dividend Payout
May 11, 2010 Interim Report: January – March 2010
August 11, 2010 Interim Report: January – June 2010
November 10, 2010 Interim Report: January – September 2010
March 9, 2011 Release of the 2010 Annual Report
May 5, 2011 2011 Annual Shareholders Meeting
May 6, 2011 Dividend Payout
May 11, 2011 Interim Report: January – March 2011
August 10, 2011 Interim Report: January – June 2011
November 9, 2011 Interim Report: January – September 2011

Thinking ahead.
For the future of energy.
Annual Report Part II/II
2009 Financial Report

E.ON Group Financial Highlights
€ in millions 2009 2008 +/- %
Electricity sales 1, 2 (billion kWh) 815.9 597.4 +37
Gas sales 2 (billion kWh) 1,217.7 1,208.6 +1
Sales 81,817 86,753 -6
Adjusted EBITDA 13,526 13,385 +1
Adjusted EBIT 9,646 9,878 -2
Net income 8,645 1,621 +433
Net income attributable to shareholders of E.ON AG 8,396 1,283 +554
Adjusted net income 5,328 5,597 -5
Economic investments 11,994 26,236 -54
Cash provided by operating activities of continuing operations 9,054 6,738 +34
Economic net debt (at year-end) -44,665 -44,946 +281 3
Debt factor 4 3.3 3.4 -0.1 3
Equity 43,955 38,444 +14
Total assets 152,636 156,824 -3
ROCE (%) 11.7 12.9 -1.2 5
Pretax cost of capital (%) 9.1 9.1 –
After-tax cost of capital (%) 6.7 6.7 –
Value added 2,144 2,902 -26
Employees (at year-end) 88,227 93,538 -6
Earnings per share 6, 7 (€) 4.41 0.69 +539
Equity per share 6, 7 (€) 21.21 18.11 +17
Dividend per share 7 (€) 1.50 1.50 –
Dividend payout 2,858 2,857 –
Market capitalization 8 (€ in billions) 55.7 54.2 +3
1Includes trading volume of 578.8 billion kWh for 2009 (prior year: 347.2 billion kWh).
2In 2009, we deployed a new IT system across our company for gathering energy-related data and also modified our classification methods. We adjusted the prior-year figures
accordingly.
3Change in absolute terms.
4Ratio of economic net debt and adjusted EBITDA.
5Change in percentage points.
6Attributable to shareholders of E.ON AG.
7After, or adjusted for, the stock split in 2008.
8Based on shares outstanding.

Contents
2 Combined Group Management Report
2 Corporate Profile and Operating Environment
18 Earnings Situation
30 Financial Condition
36 Asset Situation
37 Financial Statements of E.ON AG
38 Employees
40 Research and Development
41 Corporate Responsibility
42 Risk Report
48 Forecast
52 Consolidated Financial Statements
52 Independent Auditor’s Report
53 Consolidated Statements of Income
53 Consolidated Statements of Recognized Income
and Expenses
54 Consolidated Balance Sheets
56 Consolidated Statements of Cash Flows
58 Statement of Changes in Equity
60 Notes
143 Declaration of the Board of Management
144 Corporate Governance Report
144 Corporate Governance Declaration 1
148 Compensation Report 1
156 Supervisory Board and Board of Management
156 Report of the Supervisory Board
160 Members of the Supervisory Board
162 Disclosure of Takeover Barriers 1
164 Internal Control System for the Accounting Process 1
166 Explanatory Report of the Board of Management
167 Members of the Board of Management
168 Tables and Explanations
168 Summary of Financial Highlights
169 Glossary of Financial Terms
173 Financial Calendar
1 Part of the Combined Group Management Report.
Thinking ahead.
For the future of energy.
Annual Report Part I/II
2009 Company Report
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Company Report
• Our Company.
A profile of our business and the key
issues that affect it.
• Our Team.
Our Board of Management, our
Supervisory Board, and our employees.
• Our Investors.
The performance of our stock
and bonds.
• Our Strategy.
From our key beliefs to the
businesses we’re developing.
• Our Structure.
A detailed look at all of
our market units.
You can download our Company
Report, or order the print version,
at eon.com/brochures.

2 Combined Group Management Report
Adjusted EBIT almost at high prior-year level
Cash provided by operating activities up 34 percent
Management to propose dividend of €1.50
2010 adjusted EBIT expected to be up 0 to 3 percent
E.ON Group: Market Units, Lead Companies, Reporting Units
Central Europe
E.ON Energie AG
Munich, Germany, 100%
Central Europe West
• Regulated Business
• Non-regulated Business
Central Europe East
Other/Consolidation
Pan-European Gas
E.ON Ruhrgas AG
Essen, Germany, 100%
Regulated Business
Non-regulated Business
Other/Consolidation
Corporate Profile and Operating Environment
Corporate Structure and Operations
E.ON is one of the world’s largest investor-owned energy
companies. Our more than 88,000 employees generated just
under €82 billion in sales in 2009. E.ON operates along the
value chain in power and gas. These operations are segmented
geographically or functionally into market units. The lead
company of each market unit is responsible for integrating
and coordinating operations across its target market. Business
units manage day-to-day operations. We pursue a valueoriented
management approach aimed at enhancing our
competitiveness and delivering profitable growth. All subsequent
commentary for the E.ON Group in the Combined Group
Management Report also applies to E.ON AG.
For reasons of materiality, we combine our Climate & Renewables,
Russia, Italy, and Spain market units in a single reporting
segment called New Markets.
Corporate Center
The E.ON AG Board of Management steers the E.ON Group. Its
main tasks are to manage E.ON as an integrated energy
company, chart E.ON’s strategic course, manage and secure
necessary financing, manage business issues that transcend
individual markets, manage risk, and continually optimize
the Group’s business portfolio.
U.K.
E.ON UK plc
Coventry, United Kingdom, 100%
Regulated Business
Non-regulated Business
Other/Consolidation
Corporate Center
E.ON AG, Düsseldorf
Nordic
E.ON Sverige AB
Malmö, Sweden, 99.99%
Regulated Business
Non-regulated Business
Other/Consolidation
The Corporate Center segment consists of E.ON AG itself and of
ownership interests managed directly by E.ON AG. We also
allocate consolidation effects at the Group level to this segment.
Central Europe
E.ON Energie is responsible for our electricity business and
our gas distribution and sales business in many countries
across Central Europe.
The Central Europe West Regulated and Non-regulated
businesses (whose main presence is in Germany, the
Netherlands, Belgium, and France) consist of:
• the operation of conventional and nuclear power
stations as well as renewable-source and waste-
incineration power generation
• electric transmission via high-voltage and ultrahigh-
voltage wires networks
• regional distribution of electricity, gas, and heat
• electricity, gas, and heat sales.
The ultrahigh-voltage transmission network was sold to
Netherlands-based TenneT in February 2010.
The Central Europe East business consists of our shareholdings
in regional electric and gas distributors in Bulgaria, Romania,
Slovakia, the Czech Republic, and Hungary.

U.S. Midwest
E.ON U.S. LLC
Louisville, Kentucky, USA, 100%
Regulated Business
Non-regulated Business/Other
Energy Trading
E.ON Energy Trading SE
Düsseldorf, Germany, 100%
Proprietary Trading
Optimization
In 2009, E.ON Energie supplied power and gas to about
17 million customers in and outside Germany, about half of
them in Central Europe West and half in Central Europe
East. This figure includes customers served by significant
minority shareholdings.
Pan-European Gas
E.ON Ruhrgas is one of Europe’s leading gas companies and
one of the world’s largest investor-owned gas importers. Its
customers are regional and municipal energy companies as
well as industrial enterprises in and outside Germany. Effective
2009, Pan-European Gas adjusted its segment reporting.
The reporting units Up-/Midstream and Downstream Shareholdings
were replaced by non-regulated and regulated.
The non-regulated business consists of the gas wholesale business,
the exploration and production business, and the gas
storage business. The regulated business consists of ownership
interests in energy companies in European countries
other than Germany (E.ON Ruhrgas International) and the regulated
transport business. Minority ownership interests in
municipal gas and electric utilities in Germany (Thüga) are
reported, along with consolidation effects, under Other/
Consolidation. Thüga was sold to a consortium of municipal
utilities effective December 1, 2009.
At year-end 2009, the pipeline system of E.ON Gastransport
and its project companies in Germany had a total length of
11,600 kilometers (prior year: 11,552 kilometers); 70 kilometers
of coke gas pipelines are owned by E.ON Ruhrgas. The working
New Markets
E.ON Climate &
Renewables GmbH
Düsseldorf, Germany, 100%
E.ON Russia Power
Moscow, Russia, 100%
E.ON Italia S.p.A.
Milan, Italy, 100%
E.ON España S.L.
Madrid, Spain, 100%
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
gas capacity of E.ON Gas Storage’s owned, jointly owned,
project-company-owned, and leased underground storage
facilities was approximately 10 billion cubic meters (6 billion
cubic meters in Germany) at year-end 2009.
U.K.
E.ON UK runs our energy business in the United Kingdom. Its
regulated business consists of Central Networks, which operates
an electricity distribution business in central England.
Its non-regulated business includes the generation, retail, and
the energy services businesses. The generation business
covers activities including power generation, operation and
maintenance of combined heat and power plants, and power
station development and operation. The retail business
encompasses the sale of electricity and gas services to residential,
business, and industrial customers. As of December
31, 2009, E.ON UK supplied approximately 7.9 million customer
accounts, of which 7.4 million were residential and
0.5 million were business customer accounts.
Nordic
E.ON Sverige manages our energy operations in Northern
Europe. The regulated business consists of power and gas
distribution. The non-regulated business consists mainly of
power generation; heat production; power, gas, and heat
sales; and energy services. At year-end 2009, Nordic supplied
roughly 1 million electricity, gas, and heat customer accounts.
3

4 Corporate Profile and Operating Environment
U.S. Midwest
E.ON U.S. is an energy service provider with operations
focused on the regulated electric and gas utility sector. The
regulated utility business is composed of two companies,
Louisville Gas and Electric Company (“LG&E”) and Kentucky
Utilities Company (“KU”), which are owned and managed by
E.ON U.S. LG&E and KU both operate vertically integrated
businesses where customers benefit from combined electric
generation, transmission, distribution, and retail services.
In addition, LG&E provides natural gas distribution services.
Together, LG&E and KU distribute electricity to approximately
940,000 customers, predominantly in Kentucky. They serve
several classes of customers including residential, commercial
and industrial, and municipalities. LG&E distributes natural
gas to approximately 321,000 customers in Kentucky.
Energy Trading
Energy Trading combines our risk management activities,
mainly for power, gas, coal, oil, and carbon allowances. These
activities consist of optimization and proprietary trading.
Both are conducted in accordance with our risk management
systems as well as trading limits and can involve intentionally
utilizing changes in market prices and risk positions. Energy
Trading also includes the financial results of Italy-based
E.ON Energy Trading S.p.A. whose operations it has managed
centrally since January 1, 2009. Legal integration will be completed
at a later stage.
New Markets
E.ON Climate & Renewables is responsible for managing and
expanding E.ON’s global renewables operations (with the
exception of large-scale hydroelectricity) and climate-protection
projects.
E.ON Russia Power is responsible for the E.ON Group’s electricity
operations in Russia. Our Russian business focuses on
the operation of thermal power stations in Central Russia,
Ural, and Siberia, predominantly fast-growing, industrialized
regions of the country.
E.ON Italia manages our power and gas business in Italy. Dayto-day
operations consist of power generation, power and gas
sales, and gas distribution. At year-end 2009, E.ON Italia supplied
power and gas to about 800,000 homes and businesses.
E.ON España runs our integrated energy business in Spain,
where at year-end 2009 it supplied electricity to about
700,000 customers.
Sales Markets and Market Positions
Central Europe
• No. 3 in power generation
• No. 1 in power and gas sales
• Significant operations in Germany, Belgium, France,
the Netherlands, Hungary, the Czech Republic, Slovakia,
Romania, and Bulgaria
Pan-European Gas
• One of Europe’s leading gas companies
• Pan-European gas supply portfolio consisting of long-term
supply contracts with Norway, Russia, the Netherlands,
Germany, Denmark, and the United Kingdom
U.K.
• No. 2 in power generation
• No. 3 in power and gas sales
• Significant operations in the United Kingdom
Nordic
• No. 4 in power generation in the Nordic region
• No. 3 in power sales in the Nordic region
• Significant operations in Sweden and Finland
U.S. Midwest
• No. 1 in power generation in Kentucky
• No. 1 in power and gas sales in Kentucky
• Significant operations in the Midwestern United States
New Markets
• Climate & Renewables
With operations in Germany, France, Poland, Sweden,
Italy, Spain, Portugal, the United Kingdom, and the
United States, E.ON Climate & Renewables ranks among
the global leaders in wind power.
• Russia
E.ON is one of Russia’s leading thermal power producers.
• Italy and Spain
We have solid market positions in Italy and Spain.
Strategy
With a broad geographic footprint and strong market positions,
E.ON is one of Europe’s leading energy companies. Our growth
in recent years has enabled us to expand our presence in
Europe, tap new markets like Russia, and become a leader in
renewables. We are therefore superbly positioned to successfully
meet new challenges and seize new opportunities in
Europe’s energy marketplace. Key areas in the years ahead
will be supply security, affordability, and above all climate
protection. We are gearing all our businesses to meet these

challenges and opportunities and are making targeted
investments in climate-friendly and efficient energy supply.
At the same time, our Group-wide efficiency-enhancement
program called PerformtoWin will enable us to increase our
productivity, reduce our costs, and achieve €1.5 billion in
earnings improvements by 2011.
Our strategy is founded on six key beliefs:
• We are active along the entire value chain in power and
gas: in production, import and wholesale, distribution,
and end-customer sales. Our comprehensive market
knowledge enables us to operate efficiently and to create
value along the entire value chain.
• Power and gas are strongly connected upstream (gas
supply to gas-fired generation), midstream (cross-commodity
energy trading), and downstream (increasing
popularity of dual-fuel products). Our solid position in all
three areas provides us with valuable synergies and a
superior competitive positioning.
• International scale and strong market positions give us
a key competitive edge in liberalized markets and create
a solid foundation for ensuring supply security and for
making the necessary large-scale investments in climatefriendly
power generation.
• Growth beyond our traditional core markets (Germany,
the United Kingdom, Sweden) creates additional opportunities
to expand our business so that we sustain our
success in a consolidating European energy market.
• Our deep expertise in all facets of the energy business is
a considerable competitive advantage, one that we
leverage fully by sharing best practices across our entire
organization.
• Open, competitive markets are the best framework for
ensuring a secure, efficient energy supply. An integrated
European energy market offers E.ON superb opportunities
to strengthen our market position and to capture
value from cross-border synergies.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Energy Policy and Regulatory Environment
International
More than 100 heads of state and government met in Copenhagen,
Denmark, in December 2009 for the United Nations
Climate Change Conference. The purpose was to agree on strategies
for limiting global warming to a maximum of 2 degrees
Centigrade. The resulting compromise, however, provides
only vague guidance for implementation, which will be the
subject of further negotiations in Bonn in June 2010 and in
Mexico in late 2010. Two key issues are reduction targets for
greenhouse-gas (“GHG”) emissions and financial assistance
for developing countries to take climate-protection measures.
The proposals call for industrial countries to provide $30 billion
in funding for 2010–2012 and for a $100 billion international
fund to be established by 2020.
Europe
In early 2009, the European Commission passed a €5 billion
stimulus program to support the expansion of Europe’s
power and gas networks as well as carbon capture and storage
(“CCS”) projects. Funds will be disbursed in 2010.
The European Commission, the European Parliament, and the
member states next passed the third legislative package. In
addition to the complete legal unbundling of electricity and
gas transmission system operators, the legislative package
allows the establishment of an independent transmission
operator (“ITO”) or an independent system operator (“ISO”).
The third legislative package will affect the entire value
chain and will grant national and European regulatory agencies
far-reaching new authority to intervene in markets.
In addition, the European Commission, the European Parliament,
and the Council passed the green legislative package
whose purpose is to enable the EU to achieve its climate targets.
By 2020, renewables are supposed to meet 20 percent
of the EU’s energy consumption, while GHG emissions are to
be reduced by 20 percent from a 1990 baseline. Emission
allowances for the EU-wide Emissions Trading Scheme (“ETS”)
have so far been allocated at no cost. No-cost allocation will
gradually be replaced by the auctioning of allowances. Starting
in 2013, power producers will have to acquire all of their
allowances through auctions. The number of allowances will
be reduced each year. Industries not subject to the ETS will
also have to reduce their emissions in accordance with national
targets; a portion of the fuel they use must come from renewable
sources. The EU will provide financial support for the
development of CCS technology.
5

6 Corporate Profile and Operating Environment
There continues to be strong political support for the expansion
of renewables. The Renewable Energy Directive, which took
effect in 2009, sets a binding target for the Community to
increase renewables’ share of total energy consumption to
20 percent, which will require renewables’ share of electricity
consumption to increase to 34 percent. To help promote the
achievement of this target, member states will have to submit
national action plans (containing their support policies for
renewables) to the European Commission. This can be expected
to result in the member states maintaining or expanding
their support policies.
In general, the member states may still decide on their own
energy mix. In view of nuclear energy’s significant contribution
to the EU’s energy supply, the Council emphasized the need
for a broad-based dialog on the opportunities and risks of
nuclear energy in the Community.
The European Commission aims to pave the way to a lowcarbon
economy, in particular by reducing carbon emissions
in power generation and the transport sector (through, for
example, the development of battery-powered cars). To support
this aim, the Commission intends to foster the creation of a
European super network for power and gas. It also announced
that it intends to design an energy strategy for the period
through 2050, in which enhancing energy efficiency and
expanding renewables will remain key policy objectives.
Germany
Elections held in September 2009 returned a new federal
government consisting of the CDU/CSU and FDP parties. The
new government’s coalition agreement reiterated the objective
of limiting global warming to 2 degrees Centigrade. The
government is determined that Germany will remain a pac esetter
in climate protection and is committed to the targets
of the Integrated Climate Protection and Energy Package,
which call for Germany to reduce its GHG emissions by 40 percent
by 2020 compared with a 1990 baseline.
One key focus of German energy policy in the new legislative
period is the transposition of the EU’s third legislative package
into national law. Another task is to design the legal framework
for the comprehensive transformation of the country’s
energy networks into smart grids.
The federal government intends to continue to support the
expansion of renewables to enable Germany to meet its
existing climate-protection targets. In addition, the government
intends to support efforts to make renewables competitive
as soon as possible. It also plans to design a strategy for
importing solar and wind power from North Africa (Desertec
is one such example) and to pursue a proactive energy foreign
policy.
The coalition agreement also expresses the new federal government’s
willingness to extend the operating lives of Germany’s
nuclear power plants (“NPPs”) as long as they comply with
strict German and international safety standards. It states that
not utilizing this key energy-policy option would threaten
Germany’s ability to meet its climate-protection targets and
increase its import dependence. An agreement still needs to
be reached on the preconditions for extending NPP operating
lives, on detailed rules (such as the operating lives of individual
NPPs), on safety standards, and on rules for channeling revenues
into the refinement of renewables technologies.
To bolster competition law, the federal government intends
to amend Germany’s Law against Barriers to Competition
(“GWB”). Plans call for it to contain a provision granting regulators
the authority, as a final option, to break up companies’
that have a dominant market position.
The federal government also intends for Germany to become
a lead market for electromobility. It aims for 1 million batterypowered
vehicles to be on the country’s streets by 2020. It
announced that it would design a broad, technology-neutral
mobility and fuel strategy that will incorporate all alternative
technologies and energy sources. The EU also plans to support
the development of electric vehicles.
Incentive-Based Regulation
Pursuant to the relevant ordinance, incentive-based regulation
began on January 1, 2009. Interregional gas pipeline operators
were migrated to incentive-based regulation on January 1, 2010.
Cost-based network fees provide the starting point for incentive-based
regulation under which network operators have ten
years to lower their costs to those of a 100-percent-efficient
network operator. E.ON network operators included in the
nationwide benchmarking conducted by the German Federal
Network Agency (known by its German abbreviation, “BNetzA”)
already average close to 100 percent. In July 2008, the BNetzA
defined the allowed return on equity for the first regulation
period of incentive-based regulation (2009–2013): the allowed
return for both power and gas is 9.29 percent for new assets
and 7.56 percent for existing assets. Compared with the previously
applicable figures, the allowed return for gas assets is
essentially unchanged, while the allowed return for electricity
assets is higher.
Gas Network Access
Germany’s gas transport pipeline system is divided into
regional segments called market areas. The coupling of many
of these market areas along with the introduction of the
two-contract model has significantly simplified gas-network
access. Initially, Germany had more than 20 market areas.

Effective October 1, 2009, it only has three for high-calorific
(“H”) gas and three for low-calorific (“L”) gas. NetConnect
Germany, the country’s largest and most liquid H gas market
area, includes the pipeline systems of E.ON Gastransport
(“EGT”) and bayernets as well as those of its new members,
ENI/GVS and GRTgaz Germany. The country’s second large
H gas market area is called Gaspool. The coupling of market
areas is an important milestone for Germany’s gas market
and fulfills the BNetzA’s stipulation that the number of market
areas be significantly reduced.
United Kingdom
In mid-2009, the U.K. government published a Low Carbon
Transition Plan which articulates how the country could, by 2020,
achieve a 34-percent reduction in GHG emissions from a
1990 baseline. At the same time, it published its Renewable
Energy Strategy which maps out how the country can
achieve its EU target of meeting 15 percent of energy consumption
from renewables by 2020. In January 2008, the
U.K. government published a White Paper on Nuclear Energy
which paves the way for the construction of new NPPs in
Britain. It contains a number of provisions to accelerate, and
provide a solid legal foundation for, planning and consents
processes in order to give private investors incentives to
build and operate new, technologically advanced NPPs. The
government’s objective is to keep nuclear’s share of the generation
mix at least constant in order to promote climate
protection and supply security.
Ten potential NPP sites were identified and then auctioned in
spring 2009. In 2010, parliament is expected to pass legislation
to speed up and simplify the planning process. The government
hopes that the first new NPPs will enter service by the
end of this decade.
In November 2009, the Energy Bill was presented to the U.K.
parliament. It included provisions to support CCS demonstration
projects in the United Kingdom and mandatory social
price support to reduce energy bills for the most vulnerable
consumers. It also provided greater clarity on the role of
the U.K. energy regulator.
In addition, 2009 saw the release of draft National Policy
Statements (“NPSs”). NPSs are an integral part of a new system
intended to establish a more efficient and timely process
for reaching decisions on nationally significant infrastructure
projects, such as network expansion. The NPSs are set to take
effect in 2010.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
The Treasury’s Pre-Budget Report in December 2009 announced
a review of the electricity market. The Department of Energy
and Climate Change and the Treasury will work together in 2010
to ensure that the electricity market framework can most
effectively deliver a fair deal for consumers and the low-carbon
investments needed for the long term. In addition, in 2010
the U.K. government will continue to refine policies to promote
energy efficiency and renewable-source heat and electricity.
There will be a general election in the first half of 2010, which
could have some impact on future energy policies.
Sweden
In February 2009, the Swedish government agreed on a package
of sustainable energy and climate policies. Its primary
objective is to end Sweden’s dependence on fossil fuels in order
to reduce GHG emissions and enhance supply security. It
aims to achieve this by increasing the renewables component
in all sectors of the economy and enhancing energy efficiency.
The government has set ambitious targets for 2020: renewables
are to meet 50 percent of Sweden’s overall energy
demand and 10 percent in the transport sector; energy efficiency
is to be increased by 20 percent and GHG emissions
cut by 40 percent from a 1990 baseline.
The heat market is to be 100 percent fossil-free by 2020. The
government intends to promote hybrid and battery-powered
vehicles in order to make the transport sector fossil-free by
2030. In the electricity market, the government intends to retain
nuclear energy in order to promote climate protection but
also wants to diversify the country’s generation mix, which
has long consisted mainly of nuclear and hydro power. The
aims are to make the power system more reliable and enhance
supply security. In addition to promoting the expansion of
wind power and other renewables, the government reversed
Sweden’s nuclear-energy policy. Sweden repealed its nuclear
phaseout law and lifted the nearly 30-year-old ban on the
construction of new reactors, which will be limited to existing
NPP sites.
USA/Kentucky
The arrival of the Obama administration has made climate
and energy policy higher priority issues. The main focus over
the next decade will be to support the development of cleaner
energy technologies and renewables. A stimulus package,
called the New Green Deal, is designed to finance subsidies
for renewables.
7

8 Corporate Profile and Operating Environment
The stimulus package contains about $17 billion in support
for renewables, particularly for network expansion to integrate
renewables, interconnectors, and measures to manage the
intermittency of renewable-source electricity.
The package contains about $3.4 billion in funding for smart
grids; plans call for smart meters to cover about 20 percent
of the U.S. market.
Two pieces of climate-protection legislation are under consideration.
The House of Representatives passed the Waxman
bill in June 2009. The Senate has its own bill. A decision is
expected in the first half of 2010.
The two bills contain similar CO 2 -reduction targets for 2020.
The Waxman bill calls for a 17-percent reduction compared
with a 2005 baseline (which would put emissions at about
1990 levels); the Senate bill calls for a 20-percent reduction
compared with 2005. Both bills also call for the introduction
of an emission-trading system, although its precise design is
undecided, as are the modalities of the renewables market.
Under the bills, CO 2 will be classified as environmental waste.
This will make it possible for environmental cost-recovery mechanisms
to apply to carbon reduction.
Rate regulation varies significantly by state. About two thirds
of U.S. states, including Kentucky, continue to have cost-based
rate regulation.
France
In April 2009, the Champsaur Commission submitted its report
on redesigning electricity-market regulation. The report calls
for regulated tariffs for medium-sized and industrial customers
to be gradually phased out after a transition period in 2010.
However, regulated tariffs for large industrial customers will
not be fully eliminated until 2015. The report also calls for
competitors to gain access to French baseload capacity (particularly
nuclear capacity), although the precise modalities are
still undecided. In December 2009, France’s Constitutional
Court overturned a carbon tax proposed by the French government.
A new draft of the carbon tax will be presented in 2010.
Italy
A so-called anti-crisis ordinance was passed in January 2009
whose purpose is to dramatically reduce wholesale electricity
prices, although it is highly questionable whether this purpose
will actually be achieved. On the contrary, the ordinance is
rapidly and fundamentally altering Italy’s wholesale electricity
market, which could lead to risks in the power marketing
segment. The ordinance also grants the Economics Ministry
and regulators far-reaching authority to intervene in the
marketplace and expands disclosure requirements.
Spain
In October 2009, the Spanish government proposed a royal
decree that would force the country’s coal-fired power stations
to procure and use coal from the national coal stockpile and
from Spanish mines. The decree’s purpose is to protect Spain’s
coal-mining industry and to promote supply security. Under the
decree, operators of coal-fired power stations will be reimbursed
for their actual costs at production levels set by Spain’s
energy regulatory agency. Meanwhile, other thermal power
stations that are currently more competitive (such as CCGTs
and stations that burn imported coal) will have to curtail or
stop production. In February 2010, Spain’s Council of Ministers
approved the final draft of the decree, which will soon be
published and take effect. Overall, we do not expect the decree
to have any negative consequences for E.ON España.
Russia
The Russian electricity market is undergoing substantial
change in a variety of ways. It is divided into two markets:
one for electricity and one for capacity. The purpose of the
electricity market is to enable generators to recover their
variable costs (essentially, fuel costs); that of the capacity
market is to enable the recovery of fixed costs.
Despite the financial crisis, the liberalization process moved
forward in line with the government’s stated commitment.
As of July 2009, 50 percent of the wholesale electricity market
was open to competition; this should increase to 80 percent
by the end of 2010.

The rules for the capacity market have not yet been finalized.
The current plan calls for a transitional period during which
there will be different rules for existing and new assets. Starting
in 2010, existing assets will compete in a liberalized capacity
market. New assets built pursuant to a contractual investment
obligation would receive guaranteed capacity prices
for a period of up to ten years. After ten years, the two markets
will be combined into a uniform capacity market for new
and existing assets. The final design of the rules could have a
material influence on the profitability of our current and
future Russian generation fleet. Moreover, the recession-driven
decline in Russian energy demand has flattened the upward
trend in power prices. This means that the relative significance
of capacity charges in the overall market will tend to increase.
Macroeconomic Environment
Following the worst recession of the post-war period, the
global economy entered a phase of tentative recovery beginning
in the second half of 2009. In 2009, the real economy
felt the full effects of the financial crisis. According to an estimate
by the German Council of Economic Experts (“GCEE”),
global production declined by 1.1 percent in 2009. However,
the overall decline masks a variety of trends in different
regions, ranging from production growth in Asia and a slight
stabilization in the United States to a sharp decline in production
in the EU. Expansionary monetary policies by central
banks, major government stimulus programs, and lower oil
prices relative to the prior year all helped slow the worldwide
downward trend.
The economies of industrialized countries stabilized by the
end of 2009. The recession slowed tangibly in the United States
thanks to government stimulus programs and an improved
external accounts balance due to lower imports, with private
consumption offering the greatest support in the third quarter.
The picture was similar in EU member states: by mid-2009,
the downward trend was slowed by expansionary monetary
policies and government spending. However, investment activity
and private consumption remained at low levels. Declining
inflation was one reason for stable consumption demand.
According to the GCEE, the decline in global demand led to
the largest-ever drop in Germany’s exports and equipment
investments. But by mid-year, an economic collapse was staved
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
off by a combination of government spending, Europe’s
expansionary monetary policy, and government programs to
stabilize the labor market.
In the first half of the year, this general trend was exacerbated
in the United Kingdom by the destabilization of the financial
sector. The perceived loss of wealth curbed private consumption
demand. Countries in Northern and Southern Europe followed
the general EU trend.
Due to their substantial dependence on exports to the rest of
the EU, Eastern European countries followed Western Europe’s
downward path. In some countries, the situation was worsened
by massive capital flight, so that some countries had to
accept assistance from the International Monetary Fund.
The Russian economy, which is particularly dependent on revenues
from crude oil and natural gas exports, experienced a
comparatively strong contraction. The collapse of fuel revenues
along with capital flight spelled the end of Russia’s debtfinanced
investment boom.
2009 GDP Growth in Real Terms
Annual change in percent
Germany
France
Italy
Spain
Eurozone
Sweden
United
Kingdom
EU18
EU27
USA
Japan
Russian
Federation
-8.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0
-5.0
-2.1
-4.8
-3.6
-3.9
-4.7
-4.6
-4.0
-4.0
-2.5
-5.6
-7.5
Sources: German Council of Economic Experts (November 2009), German Federal
Statistical Office.
9

10
Corporate Profile and Operating Environment
Energy Industry
Consumption of primary energy in Germany in 2009 was
down sharply, falling to its lowest level since the early 1970s.
According to preliminary estimates, it declined by 6.5 percent,
from 484.5 million metric tons of coal equivalent (“MTCE”)
in 2008 to 453.1 MTCE in 2009. The recession was particularly
hard on energy-intensive industries (Germany’s energy consumption
sank more than its GDP).
Germany’s petroleum consumption fell by 5.8 percent to its
lowest level since German reunification. Nevertheless, petroleum
remained by far the country’s most important energy
source. Natural gas consumption sank by 5.5 percent due to
a reduction in demand from industrial customers and gasfired
power stations. The recession hit hard coal the hardest.
Consumption fell by an aggregate 18.1 percent, with power
stations using almost 13 percent less hard coal than in 2008.
Although lignite’s share of consumption rose slightly, lignite
consumption fell by 2.8 percent in absolute terms due to a
reduction in demand from power stations. Nuclear power production
was also lower (-9.6 percent), as was hydroelectric
(excluding pumped storage) and wind-power production. Overall,
however, renewables’ share of primary energy consumption
rose by 4 percent from 2008, with biomass and photovoltaic
recording the biggest gains.
2009 Primary Energy Consumption
in Germany by Energy Source
Percentages 2009 2008
Petroleum 34.6 34.3
Natural gas 21.7 21.6
Hard coal 11.1 12.7
Lignite 11.4 10.9
Nuclear 11.1 11.4
Renewables 9.1 8.2
Other (including net power imports/exports) 1.0 0.9
Total 100.0 100.0
Source: AG Energiebilanzen (preliminary figures from December 21, 2009).
Electricity consumption in England, Scotland, and Wales was
315 billion kWh in 2009 compared with 332 billion kWh in 2008.
Gas consumption (excluding power stations) was 597 billion
kWh compared with 645 billion kWh in 2008. The main reasons
for the decline were the impact of the recession and
energy-efficiency measures.
The Nordic region consumed 375 billion kWh of electricity in
2009, about 16 billion kWh less than in 2008. Consumption
continued to decline due to lower industrial production caused
by the economic slowdown. Net electricity imports to the
Nordic region from surrounding countries were 8.6 billion kWh
compared with net electricity exports from the Nordic region
of 1.4 billion kWh in 2008.
Electricity and gas consumption in the Midwestern United
States decreased approximately 6 percent and 5 percent,
respectively, in 2009, due primarily to declines in industrial
volumes caused by economic conditions and milder weather.
Due to the economic crisis, Russia consumed about 5 percent
less electricity in 2009 than in 2008. The decline was less
severe than the forecast (-7 percent). The reasons were the
start of economic recovery and unusually low temperatures
across Russia in the last three months of the year.
Italy’s power consumption fell by 6.7 percent (6.5 percent if
adjusted for differences in temperature and the number of working
days), from 339.5 billion kWh in 2008 to 316.9 billion kWh
in 2009. Italy’s gas consumption fell by 8.1 percent, from 894.4 billion
kWh in 2008 to 821.9 billion kWh in 2009. The main drivers
were lower gas-fired power generation and lower industrial
consumption.
Peninsular electricity consumption in Spain was 252 billion kWh,
4.5 percent lower than in the prior year (4.3 percent lower if
adjusted for differences in temperature and the number of
working days). Retail gas consumption declined by 7.9 percent
to 241 billion kWh.

Energy Prices
Four main factors drove electricity and natural gas markets
in Europe and Russia in 2009:
• international commodity prices (especially oil, coal,
and carbon allowance prices)
• macroeconomic developments
• weather conditions
• in Scandinavia and Russia, the availability of
hydroelectricity.
Prices in Europe for electricity products and related commodities
did not always move in parallel in 2009. After reaching lows
in the first quarter, prices for electricity, oil, coal, and carbon
allowances recovered through mid-year. Gas markets were
well supplied, and with demand reduced by the recession,
prices fell steadily throughout the year. Gas prices at Europe’s
virtual trading points ceased to track the prices of gas-import
contracts, which are indexed to oil prices. Backed by optimism
about the global economic outlook and robust demand
from China, the price of oil increased substantially over the
year to finish at around $78 a barrel. In the second half of the
year, electricity prices gave back some of their gains due to
lower consumption across Europe resulting from production
cuts, primarily in energy-intensive industries. At the start of
2009, prices for baseload electricity for 2010 delivery differed
significantly by region, with German electricity trading at
around €57 per MWh and Scandinavian electricity at around
€37. Prices converged by the end of the year. The German
price fell to around €45, and the Scandinavian price rose to
around €40. U.K. (€43) and Spanish (€40) prices also closed
the year within this range.
Wholesale Electricity Price Movements
in E.ON‘s Core Markets
U.K. baseload Nord Pool baseload Spain
€/MWh 1 U.S. baseload EEX baseload
110
100
90
80
70
60
50
40
30
20
1/1/08 4/1/08 7/1/08 10/1/08 1/1/09 4/1/09 7/1/09 10/1/09
1 For next-year delivery.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Hydroelectricity accounts for a large share of Scandinavia’s
generation mix. As a result, Scandinavian electricity prices
are influenced not only by typical factors (like fuel and carbon
costs and the economic situation) but also to a significant
degree by hydrological balances. Through the middle of the
year, hydrological balances reached very low levels before
recovering in the autumn and decreasing again towards the
end of the year. Low hydrological balances and cold weather
generally supported spot electricity prices and prices for
2010 delivery.
Wholesale electricity markets in Italy and Spain are not yet
as liquid as those in Northwestern Europe. Electricity prices in
Spain moved in a pattern similar to prices in Northwestern
Europe. Prices for 2010 delivery fell to near €40 per MWh at
the end of September (due to news of new legislation
designed to support Spain’s coal industry) and remained at
this level until the end of the year. In Italy, only the spot market
for next-day delivery is sufficiently liquid to have information
value. Italian power prices declined, driven largely by the
movement of natural gas and oil prices and by the overall
economic situation. The effect of the recession-driven decline
in consumption was temporarily and partially offset by power
plant outages and transmission bottlenecks between the
zones of Italy’s market-splitting system. The monthly average
price for baseload electricity for next-day delivery was around
€83 per MWh in January, €67 in late September, and around €57
at year-end 2009.
Prices for carbon allowances under the EU-wide Emissions
Trading Scheme were driven largely by commodity prices
and the recession. Carbon prices fell through mid-February to
a historic low of about €9 per metric ton. Prices recovered
through the middle of the year before decreasing again in
December to around €13, mainly due to ambiguity following
the Copenhagen climate summit and to the prospect of additional
certificates being released through auctions in the
U.K. and Germany. The German auction will, for the first time,
be conducted on the European Energy Exchange in Leipzig.
11

12 Corporate Profile and Operating Environment
U.S. natural gas and wholesale electricity markets both experienced
the weakest pricing environment in several years.
A recession-driven drop in gas demand was compounded by
increased supply from domestic unconventional gas resources
(particularly shale gas). Electricity demand was down by
3.4 percent year on year. As a result of increased utilization of
combined-cycle gas-fired power plants, electricity prices
tracked natural gas prices. December saw some increase in
prices due to the onset of harsh winter weather.
Russian electricity prices were influenced by the global economic
crisis and commodity prices. The incremental liberalization
of the electricity market took a further step in July 2009
in both price zones (Europe and Siberia). Liberalization should
be completed by 2011. Following a catastrophic accident at
Sayano-Shushenskaya hydroelectric station in August, the
electricity price in Siberia briefly jumped to 537 rubles (around
€12.50) per MWh. By the end of September, electricity prices
in Siberia had returned to the level of the first half of the
year due to network-management measures, extra production
from other hydroelectric plants, and lower consumption.
Crude Oil and Natural Gas Price Movements in E.ON‘s Core Markets
Average
monthly prices
€/
MWh
60
50
40
30
20
Electricity prices across Russia peaked at the end of the year,
as very low temperatures led to high consumption and prices
in December. This peak caused the administrator of the trading
system to introduce a price cap in the Europe zone. For the
year as a whole, the weighted-average price of electricity on
the liberalized spot market was 630 rubles (around €14.70)
per MWh in the Europe price zone and 410 rubles (around €9.50)
in the Siberian price zone.
Carbon Allowance Price
Movements in Europe
€/metric ton Phase-two allowances
30
25
20
15
10
5
1/1/08 4/1/08 7/1/08 10/1/08 1/1/09 4/1/09 7/1/09 10/1/09
Brent crude oil front month $/bbl German gas import price €/MWh U.S. front month gas €/MWh
NBP front month gas €/MWh TTF front month gas €/MWh NCG front month gas (EEX) €/MWh
1/1/08 4/1/08 7/1/08 10/1/08 1/1/09 4/1/09 7/1/09 10/1/09
$/
bbl
120
100
80
60
40

Attributable Generating Capacity
The E.ON Group’s attributable generating capacity changed
only slightly, declining by 2 percent, from 74,467 MW at yearend
2008 to 73,266 MW at year-end 2009.
The Central Europe market unit’s attributable generating
capacity declined by 1 percent to 28,407 MW (prior year:
28,749 MW).
U.K.’s attributable generating capacity was 10,330 MW, the
same as at year-end 2008.
Nordic had 6,842 MW of attributable generating capacity
(prior-year: 7,229 MW). The main reasons for the change were
the transfer of capacity to Statkraft, upgrades at nuclear assets,
and a new CHP plant in Malmö.
Attributable Generating Capacity 1
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
U.S. Midwest’s attributable generating capacity at year-end
2009 remained unchanged at 7,507 MW.
The attributable generating capacity reported in the New Markets
segment totaled 20,180 MW (prior year: 20,652 MW), with
the following breakdown: Climate & Renewables 2,957 MW
(1,979 MW), Russia unchanged at 8,264 MW, Italy 5,606 MW
(7,056 MW), and Spain unchanged at 3,353 MW.
Climate & Renewables’ attributable generating capacity
increased by 978 MW, or just under 50 percent, predominantly
through the addition of new capacity in the United States.
Italy’s attributable generating capacity declined by 1,450 MW
due to the transfer of power stations to A2A.
December 31, 2009, MW Central Europe U.K. Nordic U.S. Midwest New Markets E.ON Group
Nuclear 8,555 – – – – 8,555
Lignite 852 – – – – 852
Hard coal 6,272 – – – – 6,272
Natural gas 3,257 – – – – 3,257
Oil 1,095 – – – – 1,095
Hydro 2,373 – – – – 2,373
Wind 9 – – – 198 207
Other 318 – – – 10 328
Germany 22,731 – – – 208 22,939
Nuclear – – 2,770 – – 2,770
Lignite 69 – – – 1,412 1,481
Hard coal 3,963 4,910 – 5,267 1,965 16,105
Natural gas 1,595 3,506 580 2,164 12,313 20,158
Oil – 1,300 1,487 – 296 3,083
Hydro 47 – 1,768 76 1,262 3,153
Wind 2 – – – 2,669 2,671
Other – 614 237 – 55 906
Outside Germany 5,676 10,330 6,842 7,507 19,972 50,327
E.ON Group 28,407 10,330 6,842 7,507 20,180 73,266
1 In 2009, we deployed a new IT system across our company for gathering energy-related data and also modified our classification methods. We adjusted the prior-year figures
accordingly.
13

14 Corporate Profile and Operating Environment
Power Procurement
The E.ON Group’s owned generation fell by 5 percent, from
317.6 billion kWh in 2008 to 300.9 billion kWh in 2009. By contrast,
power procured increased by 77 percent to 539.7 billion
kWh. Renewables accounted for more than 8 percent of
our owned generation.
Power Procured 1
Billion kWh
Reflecting the overall situation in the industry, the decline
in Central Europe’s owned generation is attributable to lower
demand resulting from the economic crisis. It is also attributable
to a decline in generating capacity in line with the
commitment made to the European Commission (see Note 4
to the Consolidated Financial Statements). The increase in
power procured resulted primarily from the addition of our
French oper ations, which became consolidated at E.ON Energie
effective July 1, 2008.
Central Europe U.K. Nordic U.S. Midwest Energy Trading New Markets Consolidation E.ON Group
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Owned generation 130.4 138.3 32.8 40.4 19.0 28.3 30.9 35.4 – – 87.8 75.2 – – 300.9 317.6
Purchases 260.6 251.4 48.8 52.5 27.3 28.3 3.3 2.9 578.8 347.2 40.3 21.4 -419.4 -399.3 539.7 304.4
Jointly owned
power plants 5.4 4.5 1.6 1.4 8.0 9.5 – – – – 0.5 – – – 15.5 15.4
Energy Trading/
outside sources 255.2 246.9 47.2 51.1 19.3 18.8 3.3 2.9 578.8 347.2 39.8 21.4 -419.4 -399.3 524.2 289.0
Total 391.0 389.7 81.6 92.9 46.3 56.6 34.2 38.3 578.8 347.2 128.1 96.6 -419.4 -399.3 840.6 622.0
Station use, line
loss, etc. -13.0 -13.5 -3.6 -3.8 -1.8 -1.9 -1.8 -1.9 – – -4.5 -3.5 – – -24.7 -24.6
Power sales 378.0 376.2 78.0 89.1 44.5 54.7 32.4 36.4 578.8 347.2 123.6 93.1 -419.4 -399.3 815.9 597.4
1 In 2009, we deployed a new IT system across our company for gathering energy-related data and also modified our classification methods. We adjusted the prior-year figures for U.K.
(92.8 billion kWh) and Consolidation (-385.8 billion kWh) accordingly.
U.K. generated 32.8 billion kWh of electricity at its own power
plants in 2009, about 19 percent less than in 2008 (40.4 billion
kWh). The reduction is mainly attributable to lower wholesale
power prices and lower demand which made some
generation assets less economic to operate.
Nordic’s owned generation decreased by 9.3 billion kWh
relative to the prior year. Nuclear power production was significantly
below the prior-year level, mainly due to planned
maintenance and modernization projects aimed at extending
Owned Generation by Energy Source 1
Billion kWh
Central Europe U.K. Nordic U.S. Midwest New Markets E.ON Group
2009 % 2009 % 2009 % 2009 % 2009 % 2009 %
Nuclear 63.3 48 – – 8.5 45 – – – – 71.8 24
Lignite 6.7 5 – – – – – – 9.4 11 16.1 5
Hard coal 40.2 31 12.7 39 – – 30.3 98 9.2 10 92.4 31
Natural gas/oil 8.7 7 20.1 61 1.6 8 0.3 1 60.7 69 91.4 30
Hydro 6.9 5 – – 8.1 43 0.3 1 3.2 4 18.5 6
Wind – – – – – – – – 5.0 6 5.0 2
Other 4.6 4 – – 0.8 4 – – 0.3 – 5.7 2
Total 130.4 100 32.8 100 19.0 100 30.9 100 87.8 100 300.9 100
1 In 2009, we deployed a new IT system across our company for gathering energy-related data and also modified our classification methods. We adjusted the prior-year figures
accordingly.
lifetime and increasing capacity at Oskarshamn 3 and Ringhals
1 and longer outages for overhauls. The decline in hydropower
production is primarily a result of the agreement
between E.ON and Statkraft under which E.ON Sverige sold
one third of its hydropower capacity to Statkraft. On a like-forlike
basis, hydro production was slightly higher than in 2008.
U.S. Midwest’s owned generation was lower due to lower
demand from industrial and commercial (“I&C”) customers
and milder weather.

The breakdown of New Markets’ owned generation of
87.8 billion kWh (prior year: 75.2 billion kWh) is:
• Climate & Renewables 5.2 billion kWh (3.2 billion kWh)
• Russia 53.9 billion kWh (56.7 billion kWh)
• Italy 16.5 billion kWh (11.4 billion kWh)
• Spain 12.2 billion kWh (3.9 billion kWh).
Wind farms accounted for 96 percent of Climate & Renewables’
owned generation, with biomass and micro-hydro facilities
accounting for the remainder. Its owned generation
was 63 percent higher than in the prior year.
The Russia market unit met about 91 percent of its total needs
of 59.2 billion kWh with electricity from its own power plants.
When it made business sense, Russia met its delivery obligations
by purchasing electricity instead of producing it.
The Italy market unit met 16.5 billion kWh, or 37 percent, of
its total needs of 45.1 billion kWh with electricity from its own
power plants. The prior-year figure only includes E.ON Produzione
for six months, since the company was added at the
end of June 2008 as part of the acquisition of Endesa Europa.
Italy procured 11.3 billion kWh of power on the ancillary market
and, to optimize margins, on the Italian Power Exchange. It
purchased 17.3 billion kWh from E.ON Energy Trading S.p.A.,
mainly for sales activities.
The Spain market unit generated 70 percent of its total needs
of 17.4 billion kWh with electricity from its own power plants.
The significant increase (8.3 billion kWh) is principally attributable
to the inclusion of all 12 months in 2009. Only six
months were included in the prior year. Spain took advantage
of spot purchases of natural gas to increase its CCGT production
in 2009. Moreover, Los Barrios was idle part of the prior
year due to the installation of emission-abatement equipment.
Gas Procurement
E.ON Ruhrgas purchased about 624.1 billion kWh of natural gas
from German and foreign producers in 2009, about 8 percent
less than in 2008. The biggest suppliers were Norway (which
accounted for 27 percent), Russia (26 percent), Germany
(22 percent), and the Netherlands (15 percent). As a rule, E.ON
Ruhrgas’s supply contracts contain minimum take obligations.
To some extent, E.ON Ruhrgas fell slightly below these
minimums in 2009.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Pan-European Gas’s gas production in the North Sea rose by
about 4 percent to 1,420 million cubic meters. The increase
is primarily attributable to the start of production at Rita gas
field. Liquid and condensates production of 5.5 million barrels
was slightly below the prior-year figure due to natural production
declines at older fields.
Upstream Production
Trading Volume
To execute its procurement and sales mission for the E.ON
Group, Energy Trading traded the following financial and
physical quantities:
Power Sales
2009 2008 +/- %
Liquids/oil (million barrels) 5.5 5.9 -7
Gas (million standard
cubic meters) 1,420 1,360 +4
Total (million barrels of oil
equivalent) 14.4 14.4 –
Trading Volume
2009 2008
Power (billion kWh) 1,240.3 878.5
Gas (billion kWh) 1,497.8 937.8
Carbon allowances (million metric tons) 500.9 103.1
Oil (million metric tons) 69.1 46.0
Coal (million metric tons) 223.2 107.2
On a consolidated basis, the E.ON Group increased its power
sales by 37 percent, from 597.4 billion kWh in 2008 to 815.9 billion
kWh in 2009. The reasons were a significantly higher
trading volume but also higher power sales in our New Markets
segment. Absent the significantly higher trading volume,
power sales were roughly at the prior-year level.
Adjusted for the effect of including new operations in France
(which added about 7 billion kWh), Central Europe’s power
sales declined due to a recession-driven decline in demand.
U.K. sold less electricity to residential and small and medium
sized (“SME”) customers mainly because of changes in customer
behavior, energy-efficiency measures, and the impact
of the recession. The overall weather effect in both years is
similar. Electricity sales to I&C customers decreased significantly
as a result of the con tinuing economic slowdown, although
this was partially offset by customer gains in the autumn.
15

16 Corporate Profile and Operating Environment
Nordic sold 10.2 billion kWh less electricity than in the prior
year mainly due to lower production resulting primarily from
outages at nuclear power stations and the sale of hydro
capacity to Statkraft.
Power Sales 1
Billion kWh
U.S. Midwest’s utility power sales volumes for 2009 were lower
than in the prior year due to milder weather and to lower
I&C sales attributable to the economic downturn. The decline
in wholesale volumes was due to lower wholesale prices and
the economic downturn.
Central Europe U.K. Nordic U.S. Midwest Energy Trading New Markets Consolidation E.ON Group
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Residential and
SME 46.3 46.8 27.3 29.8 7.1 6.6 13.5 14.4 – – 6.9 1.1 – – 101.1 98.7
I&C 75.3 82.0 16.4 17.6 10.8 10.6 13.4 13.9 – – 10.1 6.7 – – 126.0 130.8
Sales partners 105.9 101.7 – – 4.2 7.2 4.7 5.0 – – 3.5 6.5 – – 118.3 120.4
Wholesale market/
Energy Trading 150.5 145.7 34.3 41.7 22.4 30.3 0.8 3.1 578.8 347.2 103.1 78.8 -419.4 -399.3 470.5 247.5
Total 378.0 376.2 78.0 89.1 44.5 54.7 32.4 36.4 578.8 347.2 123.6 93.1 -419.4 -399.3 815.9 597.4
1 In 2009, we deployed a new IT system across our company for gathering energy-related data and also modified our classification methods. We adjusted the prior-year figures for U.K.
(92.8 billion kWh) and Consolidation (-385.8 billion kWh) accordingly.
The breakdown of New Markets’ power sales of 123.6 billion
kWh (prior year: 93.1 billion kWh) is:
• Climate & Renewables 6.4 billion kWh (4.7 billion kWh)
• Russia 57.3 billion kWh (58.3 billion kWh)
• Italy 44.2 billion kWh (24.7 billion kWh)
• Spain 15.7 billion kWh (5.4 billion kWh).
Climate & Renewables sold its power exclusively in non-
regulated markets. Its power sales rose by 36 percent, mainly
due to an increase in owned generation.
The Russia market unit sold 57.3 billion kWh of electricity on
the wholesale market in 2009. Despite the overall decline in
Russian consumption, our Russian business almost equaled
its prior-year volume, benefiting in particular from the high
load factor of Surgut power station in Siberia.
The Italy market unit sold 44.2 billion kWh of electricity: 4.3 billion
kWh to residential and SME customers, 6.6 billion kWh to
I&C customers, 3.3 billion kWh to sales partners, 8.3 billion kWh
to the wholesale market, and 21.7 billion kWh to E.ON Energy
Trading S.p.A. The main reasons for the increase in power sales
volume were the transfer of certain activities from E.ON Energy
Trading S.p.A. to the Italy market unit and a larger customer
base.
The Spain market unit increased its power sales from 5.4 billion
kWh in 2008 to 15.7 billion kWh in 2009. E.ON España
became a consolidated E.ON company in late June 2008. The
inclusion of all the 12 months in 2009 was therefore
responsible for most (6.6 billion kWh) of the increase in
power sales. Higher production was another positive factor
and led to 3.7 billion kWh of additional sales, mainly to the
wholesale market.
Gas Sales
On a consolidated basis, the E.ON Group’s natural gas sales
in 2009 increased by 9.1 billion kWh relative to the prior-year
figure, mainly due to a significantly higher trading volume.
Gas Sales 1
Billion kWh 2009 2008 +/- %
First quarter 191.7 227.4 -16
Second quarter 107.3 152.3 -30
Third quarter 128.8 122.9 +5
Fourth quarter 181.3 184.4 -2
E.ON Ruhrgas AG sales 609.1 687.0 -11
Other shareholdings 147.2 201.6 -27
Intragroup sales -234.0 -233.9 –
Pan-European Gas 522.3 654.7 -20
Other market units 695.4 553.9 +26
E.ON Group 1,217.7 1,208.6 +1
1 In 2009, we deployed a new IT system across our company for gathering energyrelated
data and also modified our classification methods. We adjusted the
prior-year figures accordingly.

The increase in Central Europe’s gas sales volume is mainly
attributable to the inclusion, effective January 1, 2009, of companies
in Romania that were formerly consolidated at Pan-
European Gas and to the inclusion of operations in France.
E.ON Ruhrgas sold about 609 billion kWh of natural gas in 2009,
78 billion kWh, or about 11 percent, less than the prior-year
figure of 687 billion kWh. More than one third of the volume
decline resulted from the transfer of supply contracts within
the Group and from the curtailment of short-term trading
due to unfavorable conditions. Another negative factor was a
recession-driven decline in production at industrial facilities
in and outside Germany which E.ON Ruhrgas supplies directly
or indirectly through regional gas companies and municipal
utilities. Significantly keener competition was also responsible
for part of the decline in sales volume. Sales in the fourth
quarter of 2009 were about 3 billion kWh, or 2 percent, lower
than in the prior-year quarter; the competition-driven decline
in sales to regional gas companies and municipal utilities was
partially offset by higher sales to industrial customers and
customers outside Germany. For the year as a whole, about
61 percent of total gas sales went to regional gas companies
and municipal utilities, 15 percent to directly supplied industrial
customers, and 24 percent to customers outside Germany.
The transfer of operations in Romania to the Central Europe
market unit was the main reason why Pan-European Gas’s
majority-owned shareholdings recorded lower gas sales volume
than in the prior year.
Gas Sales (Excluding Pan-European Gas) 1
Billion kWh
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
U.K. sold less gas to residential and SME customers mainly due
to changes in customer behavior, energy-efficiency savings,
and the recession. The overall weather effect in both years is
similar. Gas sales to I&C customers decreased significantly
as a result of the continuing economic slowdown. Following
the transfer of gas contracts to Energy Trading during 2008,
gas sales to Energy Trading in 2009 are zero.
Nordic’s gas sales were 10 percent below the prior-year figure.
The main factors were the economic downturn and keener
competition. Heat sales of 7.9 billion kWh were up 4 percent
from the prior-year figure of 7.6 billion kWh, mainly due to
colder weather.
U.S. Midwest’s gas sales decreased as a result of the economic
downturn and milder weather.
In the New Markets segment, Italy sold a total of 25.7 billion
kWh of natural gas (prior year: 32.6 billion kWh): 10.3 billion
kWh to residential customers and SME, 7.4 billion kWh to
I&C customers, 2.4 billion kWh to sales partners, 4.3 billion kWh
to the wholesale market, and 1.3 billion kWh to E.ON Energy
Trading S.p.A. Gas sales volume declined due to the transfer
of certain activities from E.ON Energy Trading S.p.A. to the
Energy Trading market unit.
Central Europe U.K. Nordic U.S. Midwest Energy Trading New Markets Consolidation E.ON Group
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Residential and
SME 58.1 45.7 52.8 54.7 0.2 0.2 5.9 6.4 – – 10.3 7.6 – – 127.3 114.6
I&C 60.1 56.8 18.5 21.4 4.0 4.9 3.4 3.8 – – 7.4 16.3 – – 93.4 103.2
Sales partners 22.9 23.8 – – – – 3.2 3.4 – – 2.4 4.5 – – 28.5 31.7
Wholesale market/
Energy Trading 5.0 3.9 – 34.6 0.4 – 0.1 0.3 753.8 493.6 5.6 4.2 -318.7 -232.2 446.2 304.4
Total 146.1 130.2 71.3 110.7 4.6 5.1 12.6 13.9 753.8 493.6 25.7 32.6 -318.7 -232.2 695.4 553.9
1 In 2009, we deployed a new IT system across our company for gathering energy-related data and also modified our classification methods. We adjusted the prior-year figure for U.K.
(112.4 billion kWh) accordingly.
17

18 Earnings Situation
Business Development
The financial and economic crisis also left its mark on E.ON.
It led to lower demand for power and gas, and we saw the
need to streamline our substantial investment program. In
addition, currency-translation effects at our U.K., Nordic, and
Russia market units had an adverse impact on our earnings
situation in our reporting currency (euros). Finally, our policy
and regulatory environment presented us with significant
challenges. Among them was the sale of our ultrahigh-voltage
transmission system and about 5,000 MW of generating
capacity in Germany to fulfill our commitment to the European
Commission.
Despite the sometimes difficult conditions in the marketplace,
we had another successful financial year. As anticipated, our
adjusted EBIT of €9.6 billion was at the high prior-year level,
while our adjusted net income of €5.3 billion was lower in
line with our forecast.
We executed the following significant transactions in 2009.
Acquisitions, Disposals, and Discontinued Operations
in 2009
Note 4 to the Consolidated Financial Statements contains
detailed information about these transactions.
Acquisitions
Yuzhno-Russkoye
In October 2008, E.ON and Gazprom reached an understanding
on E.ON acquiring an interest in Yuzhno-Russkoye gas field in
Siberia. The interest in the gas field was purchased by acquiring
25 percent (minus three shares) of the company that
holds the development license.
Belgian Power Plant Unit
In the course of implementing E.ON’s commitment to the European
Commission to dispose of certain generating capacity
in Germany, E.ON acquired all of the shares of a power plant
unit in Belgium from Belgium-based Electrabel.
Discontinued Operations
WKE
Through Western Kentucky Energy Corp. (“WKE”), Henderson,
Kentucky, U.S., E.ON U.S. had a 25-year lease on and operated
the generating facilities of a power-generation cooperative
in western Kentucky, and a coal-fired generating facility owned
by the City of Henderson, Kentucky, U.S. In March 2007, E.ON
U.S. entered into a termination agreement to terminate the
lease and the operating agreements. The agreement closed
in July 2009.
Disposal Groups and Assets Held for Sale
Endesa Europa/Viesgo
As part of the acquisition of the Endesa Europa/Viesgo activities,
an agreement was reached with A2A, the minority shareholder
of E.ON Produzione, to acquire the minority interest
primarily in return for company-owned generating capacity
of the Italy market unit. The disposal group was reported in
the New Markets segment. The agreement closed in July 2009.
Commitment to the European Commission
In December 2008, E.ON’s commitment to the European Commission
to sell a variety of generating capacity and its ultrahigh-voltage
network in Germany took effect. The resulting
transactions yielded a disposal gain of €2.4 billion. Individual
transactions are shown in the table below.
Commitment to the European Commission
Transaction Acquirer Closing date
Various power
stations and stakes
in power stations Statkraft December 31, 2008
Stakes in Lippendorf/Bexbach
power stations EnBW May 29, 2009
Inn power stations Verbund August 31, 2009
Various power
stations GdF Suez/Electrabel November 4, 2009
Stakes in power
stations EdF/EnBW December 30, 2009
Stake in Mehrum
power station SW Hannover January 1, 2010
transpower TenneT February 2010
E.ON acquired the remaining outstanding shares of Francebased
SNET, equal to 35 percent of the company’s equity, in
transactions with EnBW and EdF. E.ON is now the sole owner
of SNET.
Interest in OAO Gazprom
As consideration for an interest in Yuzhno-Russkoye gas field
in Siberia, Gazprom received the Gazprom shares indirectly held
by E.ON. The relevant contracts were closed in October 2009.
This transaction resulted in a book gain of €1.8 billion. E.ON
now holds 3.5 percent of Gazprom’s equity.

Thüga
In 2009, E.ON conducted negotiations on a sale of the Thüga
Group, which is held in the Pan-European Gas market unit, to
a consortium of municipal acquirers (Integra/Kom9). The
transaction was completed in December 2009 and resulted in
a gain on disposal of approximately €0.3 billion.
Sales
Our sales declined by about €5 billion. The key drivers were:
• lower prices in the gas wholesale business and lower
sales volume at Pan-European Gas
• currency-translation effects at U.K. and Nordic
• lower nuclear and hydro production at Nordic.
Sales
€ in millions 2009 2008 +/- %
Central Europe 41,419 41,135 +1
Pan-European Gas 20,640 27,422 -25
U.K. 10,097 11,051 -9
Nordic 3,348 3,877 -14
U.S. Midwest 1,843 1,880 -2
Energy Trading 41,251 31,760 +30
New Markets 7,749 5,862 +32
Corporate Center -44,530 -36,234 –
Total 81,817 86,753 -6
Central Europe
Central Europe grew sales by €0.3 billion.
Sales
€ in millions 2009 2008 +/- %
Central Europe West 39,715 38,640 +3
Regulated 12,288 12,103 +2
Non-regulated 27,427 26,537 +3
Central Europe East 5,323 4,999 +6
Other/Consolidation -3,619 -2,504 –
Central Europe 41,419 41,135 +1
Central Europe West Regulated’s sales of €12.3 billion were
up by €0.2 billion, mainly due to higher network charges.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Central Europe West Non-regulated increased sales by €0.9 billion.
The inclusion of operations in France added €1.7 billion.
These operations were consolidated on July 1, 2008; their sales
were recorded under Other/Consolidation in 2008. Sales were
adversely affected by lower sales volumes resulting in part
from the recession and the disposal of generating capacity. This
was only partially offset by positive price effects in Central
Europe’s sales markets.
Central Europe East’s sales rose by about €0.3 billion to
€5.3 billion, primarily due to the inclusion of gas operations
in Romania formerly consolidated at Pan-European Gas.
Sales reported under Other/Consolidation declined by €1.1 billion,
mainly due to a change in the segmentation of our
operations in France, whose second-half sales were recorded
in this reporting segment in 2008.
Pan-European Gas
Sales at Pan-European Gas fell by 25 percent to €20.6 billion
(prior year: €27.4 billion).
Sales
€ in millions 2009 2008 +/- %
Regulated 4,647 6,724 -31
Non-regulated 17,659 22,546 -22
Other/Consolidation -1,666 -1,848 -10
Pan-European Gas 20,640 27,422 -25
Sales at the regulated business fell by €2,077 million, or 31 percent.
Sales at E.ON Földgáz Trade declined due to lower sales
volume and adverse currency-translation and price effects.
Another factor is that the sales of the E.ON Gaz România Group
are reported at the Central Europe market unit effective the
beginning of 2009. Sales at the gas transport business were
also lower following a reduction in transport charges.
Sales at the non-regulated business were down by €4,887 million,
or 22 percent. The gas wholesale business recorded
lower sales due to lower prices and sales volume. Upstream
sales were at the prior-year level; a price- and volume-driven
decline in sales in the United Kingdom and Norway was offset
by the addition of Yuzhno-Russkoye gas field.
19

20 Earnings Situation
U.K.
In reporting currency, U.K.’s sales were impacted significantly
by sterling’s depreciation against the euro and decreased
by €954 million. However, sales in local currency increased by
2 percent.
Sales
€ in millions 2009 2008 +/- %
Regulated 717 785 -9
Non-regulated 9,526 10,567 -10
Other/Consolidation -146 -301 +51
U.K. 10,097 11,051 -9
£ in millions
Regulated 639 625 +2
Non-regulated 8,488 8,414 +1
Other/Consolidation -131 -239 +45
U.K. 8,996 8,800 +2
Sales in the regulated business declined by €68 million to
€717 million due to currency movements (-€85 million).
Sales in the non-regulated business fell by €1,041 million to
€9,526 million, also due to currency movements (-€1,132 million).
Sales in local currency increased marginally as a result
of retail price developments.
Sales attributed to Other/Consolidation consist almost entirely
of the elimination of intrasegment sales.
Nordic
Nordic’s sales decreased by €529 million, or 14 percent. In
local currency, sales were down by 5 percent.
Sales
€ in millions 2009 2008 +/- %
Regulated 728 732 -1
Non-regulated 2,616 3,366 -22
Other/Consolidation 4 -221 –
Nordic 3,348 3,877 -14
SEK in millions
Regulated 7,731 7,042 +10
Non-regulated 27,782 32,381 -14
Other/Consolidation 43 -2,126 –
Nordic 35,556 37,297 -5
Sales in the regulated business declined by €4 million to
€728 million due entirely to currency-translation effects. In
local currency, sales were up by 10 percent, mainly because
of improved income recognition and tariff increases.
Sales in the non-regulated business declined by €750 million
to €2,616 million due to lower sales volumes in the nuclear
and hydro businesses (resulting primarily from planned outages
at nuclear power plants and the sale of hydro capacity
to Statkraft) and to currency-translation effects.
U.S. Midwest
U.S. Midwest’s sales were lower due to the economic downturn
and lower wholesale power and gas prices partially offset
by a stronger dollar.
Sales
€ in millions 2009 2008 +/- %
Regulated 1,798 1,831 -2
Non-regulated/Other 45 49 -8
U.S. Midwest 1,843 1,880 -2
$ in millions
Regulated 2,508 2,693 -7
Non-regulated/Other 62 71 -13
U.S. Midwest 2,570 2,764 -7
Energy Trading
Energy Trading recorded sales of about €41 billion in 2009.
Sales from proprietary trading are shown net, along with the
associated cost of materials, in the Consolidated Statements
of Income. The increase resulted mainly from the expansion of
optimization activities due to the centralization of these
activities at Energy Trading.
Sales
€ in millions 2009 2008 +/- %
Proprietary trading 190 242 -21
Optimization 41,061 31,518 +30
Energy Trading 41,251 31,760 +30

New Markets
Sales in this segment rose by 32 percent to €7,749 million.
Sales
€ in millions 2009 2008 +/- %
Climate & Renewables 466 439 +6
Russia 973 1,044 -7
Million rubles 42,931 38,012 +13
Italy 4,964 3,828 +30
Spain 1,346 551 +144
New Markets 7,749 5,862 +32
Climate & Renewables’ sales increased by 6 percent. The main
factor was a significant increase in installed capacity,
predominantly in the United States; this effect was partially
mitigated by negative currency-translation effects and lower
U.S. prices.
Increases in electricity and capacity tariffs along with the
further liberalization of the electricity market had a positive
effect on sales at the Russia market unit. However, the significant
weakening of the ruble in the wake of the financial
crisis caused Russia’s sales to decline by 7 percent in reporting
currency.
The sharp increase in Italy’s sales resulted mainly from the
inclusion of E.ON Produzione’s generating capacity for the
entire year. E.ON Produ zione became a consolidated E.ON company
in late June 2008 and consequently was included only
in the second half of 2008.
The Spain market unit increased its sales by €795 million.
E.ON España became a consolidated E.ON company in late
June 2008. The inclusion of all 12 months in 2009 was therefore
respon sible for most (€570 million) of the increase. Higher
power production was also a positive factor.
Corporate Center
The figure recorded under Corporate Center reflects, in
particular, the intragroup offsetting of sales between our
European market units and Energy Trading.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Development of Significant Line Items of the
Consolidated Statements of Income
Own work capitalized increased by 1 percent, or €6 million,
to €532 million (prior year: €526 million).
Other operating income increased by 62 percent to €24,961 million
(prior year: €15,454 million). Income from exchange-rate
differences of €10,849 million (prior year: €8,571 million) and
gains on derivative financial instruments of €7,473 million
(prior year: €3,543 million) were the main positive factors.
Among the derivative financial instruments, significant effects
come from commodity derivatives which reflect the considerable
price fluctuations that were seen on nearly all markets.
This principally affects our coal, oil, and natural gas position.
Countervailing effects are recorded under other operating
expenses. Notes 30 and 31 to the Consolidated Financial Statements
contain further information about derivative financial
instruments. Gains on the disposal of securities, shareholdings,
and fixed assets (primarily through the reduction of our generating
capacity in line with our commitment to the European
Commission) amounted to €5,309 million (prior year:
€1,865 million). Miscellaneous other operating income consisted
primarily of reductions of valuation allowances, rental
and leasing income, the sale of scrap metal and materials,
and compensation payments received for damages.
Costs of materials declined by €4,332 million to €62,087 million
(prior year: €66,419 million), mainly due to lower gas procurement
costs.
Personnel costs increased by €227 million to €5,357 million in
2009. The increase results mainly from the addition of operations
in our New Markets segment.
Depreciation, amortization, and impairment charges of
€3,981 million were below the prior-year figure of €6,852 million.
The main reason is that in the prior year we recorded
unplanned impairment charges totaling about €3.3 billion on
goodwill at U.S. Midwest and on goodwill and other assets
at operations acquired from Enel/Acciona and Endesa.
Other operating expenses rose by 11 percent, or €2,266 million,
to €22,603 million (prior year: €20,337 million). This is mainly
attributable to higher realized losses on currency differences
of €11,095 million (prior year: €7,879 million). By contrast,
losses on derivative financial instruments of €5,701 million
(prior year: €6,552 million) were lower.
21

22 Earnings Situation
Overall, effects from exchange-rate differences and derivative
financial instruments recorded in other operating income
and expenses offset each other, as shown in the table below.
Net Effects 1
€ in millions 2009 2008
Income from exchange-rate differences 10,849 8,571
Expenses from exchange-rate differences -11,095 -7,879
Income from derivative financial instruments 7,473 3,543
Expenses from derivative financial
instruments -5,701 -6,552
Net results 1,526 -2,317
Thereof, for informational purposes,
commodity derivatives (net) 1,695 -2,342
1 For more information, see Note 7 to the Consolidated Financial Statements.
Commodity derivatives constituted the main factor in the line
items shown above.
Income from companies accounted for under the equity
method was €941 million compared with €912 million in 2008.
Adjusted EBIT
Adjusted EBIT, E.ON’s key figure for purposes of internal management
control and as an indicator of a business’s long-term
earnings power, is derived from income/loss from continuing
operations before interest and taxes and adjusted to exclude
certain extraordinary items. The adjustments include book
gains and losses on disposals and other non-operating income
and expenses of a non-recurring or rare nature (see also the
commentary in Note 33 to the Consolidated Financial Statements).
Our 2009 adjusted EBIT was €232 million below the high
prior-year figure. Positive and negative factors largely offset
each other. We recorded earnings increases at:
• New Markets and Energy Trading
• Central Europe due to higher earnings at its network
business, the inclusion of operations in France, and
successful cost-cutting measures.
Earnings were adversely affected by:
• lower gas sales volume, competitive pressure on sales
prices, and lower upstream earnings at Pan-European
Gas
• currency-translation effects at U.K. and Nordic
• lower generation from nuclear and hydro assets at Nordic.
Adjusted EBIT
€ in millions 2009 2008 +/- %
Central Europe 4,817 4,720 +2
Pan-European Gas 1,754 2,631 -33
U.K. 649 922 -30
Nordic 535 770 -31
U.S. Midwest 384 395 -3
Energy Trading 949 645 +47
New Markets 862 90 +858
Corporate Center -304 -295 –
Total 9,646 9,878 -2
Central Europe
Central Europe’s adjusted EBIT surpassed the prior-year figure
by €97 million.
Central Europe
€ in millions
Adjusted EBITDA Adjusted EBIT
2009 2008 2009 2008
Central Europe West 5,799 5,325 4,586 4,213
Regulated 1,701 1,512 1,064 853
Non-regulated 4,098 3,813 3,522 3,360
Central Europe East 641 663 341 424
Other/Consolidation 39 278 -110 83
Total 6,479 6,266 4,817 4,720
Central Europe West Regulated benefited from efficiency
enhancements and especially from higher network charges.
Its adjusted EBIT surpassed the prior-year figure (€853 million)
by €211 million.
Central Europe West Non-regulated’s adjusted EBIT increased
by €162 million to €3,522 million. Earnings were adversely
impacted by the effects of the economic crisis, outages at
nuclear power stations, a narrowing of retail electricity margins,
and the absence of earnings streams due to the disposal of
generating capacity. These effects were more than offset by
the inclusion of operations in France, positive price effects
in the power generation business, and successful cost-cutting
measures, resulting overall in an earnings increase.
Central Europe East’s adjusted EBIT of €341 million was down
by €83 million. The positive effect of the inclusion of E.ON
Gaz România was more than offset by lower earnings in Hungary,
the adverse impact of the economic downturn, and
negative currency-translation effects.
Adjusted EBIT recorded under Other/Consolidation was down
by about €190 million, due mainly to the assignment of operations
in France to Central Europe West Non-regulated effective
January 1, 2009, and to the economic crisis.

Pan-European Gas
Pan-European Gas’s adjusted EBIT declined by €877 million,
or 33 percent, to €1.8 billion.
Pan-European Gas
€ in millions
Adjusted EBITDA Adjusted EBIT
2009 2008 2009 2008
Regulated 918 866 761 683
Non-regulated 1,085 1,923 751 1,633
Other/Consolidation 272 324 242 315
Total 2,275 3,113 1,754 2,631
Adjusted EBIT at the regulated business rose by €78 million, or
11 percent, to €761 million. The main factor was E.ON Ruhrgas
International’s positive earnings performance which resulted
primarily from higher earnings from companies accounted
for under the equity method. E.ON Földgáz Trade’s earnings
were adversely affected by lower sales volume and the resulting
failure to meet its minimum take obligations under takeor-pay
arrangements; this effect was fully offset by regulatory
compensation payments for past losses. The transfer of
the E.ON Gaz România Group to the Central Europe market
unit effective the beginning of 2009 had an adverse effect on
earnings. Earnings at the transport business were down
slightly. The adverse effect of a reduction in transport charges
was partially offset by higher earnings from companies
accounted for under the equity method.
Adjusted EBIT at the non-regulated business fell by 54 percent,
or €882 million. The decline is primarily attributable
to E.ON Ruhrgas AG’s gas wholesale business, whose earnings
were adversely affected by competitive pressure on sales
prices and by lower sales volume. Earnings from storage usage
were also lower. The positive effect of gas withdrawal was
lower in 2009 than in 2008. In addition, the dividend on our
Gazprom stake was lower than in the prior year. Adjusted EBIT
at the upstream business was also lower; a price-driven earnings
decline in the United Kingdom and Norway was only
partially offset by the addition of Yuzhno-Russkoye gas field.
Adjusted EBIT recorded under Other/Consolidation declined
by €73 million. Thüga’s adjusted EBIT was at the prior-year
level; the decline resulted from consolidation effects relating
to intragroup purchases.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
U.K.
U.K.’s adjusted EBIT declined by €273 million, or 30 percent.
U.K.
€ in millions
Adjusted EBITDA Adjusted EBIT
2009 2008 2009 2008
Regulated 525 583 407 452
Non-regulated 613 894 308 555
Other/Consolidation -58 -81 -66 -85
Total 1,080 1,396 649 922
£ in millions
Regulated 468 464 363 360
Non-regulated 546 712 275 442
Other/Consolidation -52 -64 -60 -68
Total 962 1,112 578 734
Adjusted EBIT in the regulated business was stable in local currency.
Adjusted EBIT in the non-regulated business decreased
by €247 million, predominantly due to the transfer of activities
(primarily gas contracts) to Energy Trading and to lower market-based
transfer prices. All areas of the business delivered
underlying operational improvements, including the retail business,
which also experienced a recovery in margins.
Nordic
Nordic’s adjusted EBIT in reporting currency fell by €235 million,
or 31 percent, mainly due to lower power sales volume
and negative currency-translation effects. In local currency,
adjusted EBIT was down by 23 percent.
Nordic
€ in millions
Adjusted EBITDA Adjusted EBIT
2009 2008 2009 2008
Regulated 342 328 226 211
Non-regulated 514 801 348 594
Other/Consolidation -5 -17 -39 -35
Total 851 1,112 535 770
SEK in millions
Regulated 3,633 3,158 2,401 2,026
Non-regulated 5,458 7,703 3,698 5,714
Other/Consolidation -50 -170 -422 -336
Total 9,041 10,691 5,677 7,404
23

24 Earnings Situation
Adjusted EBIT at the regulated business rose by €15 million, or
7 percent. Higher average tariffs and a non-recurring effect
relating to deferred income in the distribution business were
the main positive factors. The primary purpose of the tariff
increase is to cover substantial investments in supply security.
These factors were partially offset by negative currencytranslation
effects.
Adjusted EBIT at the non-regulated business declined by
€246 million due to lower sales volumes in the nuclear and
hydro businesses resulting from a reduction in power production.
Currency-translation effects constituted another
significant adverse factor.
U.S. Midwest
U.S. Midwest’s adjusted EBIT decreased by €11 million, or 3 percent.
The decrease is attributable to lower sales volumes and
lower wholesale prices partially offset by higher retail electric
and gas margins due to the timing of fuel, gas, and other
cost recoveries from customers and a stronger dollar. In local
currency, adjusted EBIT was $46 million, or 8 percent, lower.
U.S. Midwest
€ in millions
Adjusted EBITDA Adjusted EBIT
2009 2008 2009 2008
Regulated 560 553 394 402
Non-regulated/Other -8 -4 -10 -7
Total 552 549 384 395
$ in millions
Regulated 781 814 549 591
Non-regulated/Other -11 -6 -14 -10
Total 770 808 535 581
Energy Trading
Energy Trading recorded an adjusted EBIT of €949 million. The
optimization segment, whose main purpose is to limit risks
and optimize the deployment of the E.ON Group’s generation
and production assets, contributed €825 million, continuing
its strong development from the end of 2008 (particularly in
portfolio optimization for gas) and benefited from the inclusion
of Italian trading activities for the first time. The proprietary
trading segment contributed an adjusted EBIT of
€124 million, which is below the exceptional prior-year figure.
Energy Trading
€ in millions
Adjusted EBITDA Adjusted EBIT
2009 2008 2009 2008
Proprietary trading 127 180 124 179
Optimization 834 469 825 466
Total 961 649 949 645
New Markets
New Markets’ adjusted EBIT rose considerably to €862 million.
New Markets
€ in millions
Adjusted EBITDA Adjusted EBIT
2009 2008 2009 2008
Climate & Renewables 293 152 146 66
Russia 203 171 73 41
Million rubles 8,959 6,234 3,209 1,502
Italy 821 157 540 –
Spain 227 30 103 -17
Total 1,544 510 862 90
Climate & Renewables’ adjusted EBIT for 2009 was significantly
higher mainly due to the significant increase in installed
capacity.
Russia’s adjusted EBIT rose by €32 million year on year to
€73 million mainly due to the ongoing market liberalization
and cost-optimization measures. Positive effects from operating
improvements in 2009 exceeded the positive non-recurring
currency-translation effects Russia recorded in the fourth
quarter of 2008.
Italy posted an adjusted EBIT of €540 million. This sharp
increase resulted mainly from the inclusion of E.ON Produzione
for the entire year and the successful renegotiation of
power supply contracts. Another factor was that the prioryear
figure was adversely affected by the non-cash-effective
accounting treatment of carbon emission allowances allocated
at no cost.

Spain posted an adjusted EBIT of €103 million, of which €60 million
came from its generation business. The main factor in
the increase was the inclusion of 12 months in 2009 versus
6 months in 2008 (E.ON España became a consolidated E.ON
company in late June 2008). In addition, non-recurring effects
relating to the accounting treatment of carbon allowances
allocated at no cost that adversely impacted adjusted EBIT in
2008 were not repeated in 2009. Spain also saw wider margins
in its generation business, which also benefited from gas
purchase support from E.ON Ruhrgas.
Net Income
Net income attributable to shareholders of E.ON AG of €8.4 billion
and corresponding earnings per share of €4.41 were both
sharply higher than the corresponding prior-year figures of
€1.3 billion and €0.69.
Net Income
€ in millions 2009 2008 +/- %
Adjusted EBIT 9,646 9,878 -2
Adjusted interest expense (net) -2,177 -1,835 –
Net book gains 4,815 1,324 –
Restructuring and
cost-management expenses -443 -524 –
Other non-operating earnings -48 -6,260 –
Income/loss from continuing
operations before income taxes 11,793 2,583 +357
Income taxes -2,976 -834 –
Income/loss from continuing
operations 8,817 1,749 +404
Income/loss from discontinued
operations, net -172 -128 –
Net income 8,645 1,621 +433
Shareholders of E.ON AG 8,396 1,283 +554
Minority interests 249 338 -26
Adjusted interest expense (net) increased by €342 million,
mainly because our net debt was, on average, higher in 2009
than in 2008.
Adjusted Interest Expense (Net)
€ in millions 2009 2008
Interest expense shown in Consolidated
Statements of Income -2,249 -1,893
Interest income (-)/expense (+) not
affecting net income 72 58
Total -2,177 -1,835
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Net book gains in 2009 were €3.5 billion above the prior-year
level. This is mainly attributable to the sale of generating
capacity in line with our commitment to the European Commission,
the sale of Thüga to a consortium of municipal
utilities, and capital gains on the swap of Gazprom stock for
our stake in Yuzhno-Russkoye gas field.
Restructuring and cost-management expenses declined by
about €80 million. As in the prior year, a significant portion of
these expenses resulted from restructuring measures at our
regional utilities in Germany and from the continued implementation
of the changes to the E.ON Group’s organizational
structure decided on in 2008.
Other non-operating earnings primarily reflect the marking to
market of derivatives used to protect our operating business
from price fluctuations. At December 31, 2009, the marking to
market of derivatives resulted in a positive effect of about
€1.1 billion compared with -€2.2 billion at December 31, 2008.
The realization of effects formerly recorded in equity (and
thus with no affect on net income) also had a positive effect;
these items relate to reorganization measures in connection
with corporate law. The main negative factors were the
€553 million fine for alleged market sharing between E.ON
Ruhrgas and GdF Suez; write-downs on securities, financial
investments, and other assets; and costs relating to a storm
in Kentucky at the start of 2009. In addition to the negative
effects from the marking to market of derivatives, the main
adverse effects on other non-operating earnings in 2008 were
an impairment charge of €1.5 billion on goodwill at the U.S.
Midwest market unit and an impairment charge of €1.8 billion
on the goodwill and other assets of the operations in Italy,
Spain, and France acquired from Enel/Acciona and Endesa.
The €2,142 million increase in our tax expense relative to 2008
is principally attributable to an increase in deferred taxes
on our derivative earnings. By contrast, our effective tax rate
declined from 32 percent in 2008 to 25 percent in 2009 because
the impairment charges on goodwill recorded in 2008 did not
lead to tax relief (see Note 14 to the Consolidated Financial
Statements).
Income/loss from discontinued operations, net, consists
primarily of Western Kentucky Energy, which was sold in 2009.
Pursuant to IFRS, its results are reported separately in the
Consolidated Statements of Income (see Note 4 to the Consolidated
Financial Statements).
25

26 Earnings Situation
Adjusted Net I ncome
Net income reflects not only our operating performance but
also special effects such as the marking to market of derivatives.
Adjusted net income is an earnings figure after interest
income, income taxes, and minority interests that has been
adjusted to exclude certain special effects. In addition to the
marking to market of derivatives, the adjustments include
book gains and book losses on disposals, restructuring expenses,
other non-operating income and expenses (after taxes and
minority interests) of a special or rare nature. Adjusted net
income also excludes income/loss from discontinued operations
and from the cumulative effect of changes in IFRS principles
(after taxes and minority interests), as well as special
tax effects.
Adjusted Net Income
€ in millions 2009 2008 +/- %
Net income attributable to
shareholders of E.ON AG 8,396 1,283 +554
Net book gains -4,815 -1,324 –
Restructuring and
cost-management expenses 443 524 –
Other non-operating earnings 48 6,260 –
Taxes and minority interests
on non-operating earnings 1,104 -1,171 –
Special tax effects -20 -103 –
Income/loss from discontinued
operations, net 172 128 –
Total 5,328 5,597 -5
ROCE and Value Added
Group-wide Value-Oriented Management Approach
Our corpora te strategy is aimed at delivering sustainable
growth in shareholder value. We have put in place a Groupwide
planning and controlling system to assist us in planning
and managing E.ON as a whole and our individual businesses
with an eye to increasing their value. This system
ensures that our financial resources are allocated efficiently.
In addition to adjusted EBIT, our most import key figure for
purposes of internal management control, we also use return
on capital employed (“ROCE”) and value added to monitor
the value performance of our operating business. To monitor
the periodic performance of our business segments, we
compare each segment’s ROCE with its business-specific cost
of capital. In addition to ROCE, which is a relative performance
metric, we also measure performance using valued added,
which is an absolute performance metric.
Cost of Capital
The cost of capital is determined by calculating the weightedaverage
cost of equity and debt. This average represents the
market-rate returns expected by stockholders and creditors.
The cost of equity is the return expected by an investor in
E.ON stock. The cost of debt equals the long-term financing
terms (after taxes) that apply in the E.ON Group. The parameters
of the cost-of-capital determination are reviewed on an
annual basis. The cost of capital is adjusted if there are
significant changes.
Because changes to these parameters were minimal, in 2009
we did not adjust the cost of capital we use to monitor the
value performance of our operating business. The table on the
next page illustrates the derivation of cost of capital before
and after taxes. Deviations result in particular from an increase
in long-term interest rates on corporate debt. The E.ON Group’s
debt-to-equity ratio is unchanged at 35 to 65. This figure
reflects a target capital structure derived from a level of debt
commensurate with E.ON’s target rating and from the market
value of E.ON’s equity.
E.ON’s pretax and after-tax cost of capital in 2009 were
unchanged at 9.1 percent and 6.7 percent, respectively. The
market units’ respective minimum ROCE requirements were
between 8.7 percent and 10.4 percent before taxes.

Cost of Capital
2009 2008
Risk-free interest rate 4.5% 4.5%
Market premium 1 4.0% 4.0%
Beta factor 2 0.88 0.88
Cost of equity after taxes 8.0% 8.0%
Tax rate 27% 27%
Cost of equity before taxes 11.0% 11.0%
Cost of debt before taxes 5.7% 5.7%
Tax shield (tax rate: 27%) 3 1.5% 1.5%
Cost of debt after taxes 4.2% 4.2%
Share of equity 65.0% 65.0%
Share of debt 35.0% 35.0%
Cost of capital after taxes 6.7% 6.7%
Cost of capital before taxes 9.1% 9.1%
1 The market premium reflects the higher long-term returns of the stock market
compared with German treasury notes.
2 The beta factor is used as an indicator of a stock’s relative risk. A beta of more
than one signals a higher risk than the risk level of the overall market; a beta
factor of less than one signals a lower risk.
3 The tax shield takes into consideration that the interest on corporate debt
reduces a company’s tax burden.
Analyzing Value Creation by Means of ROCE and
Value Added
ROCE is a pretax total return on capital. It measures the sustainable
return on invested capital generated by operating a
business. ROCE is defined as the ratio of adjusted EBIT to
capital employed.
Capital employed represents the interest-bearing capital tied
up in the Group. Capital employed is equal to a segment’s
operating assets less the amount of non-interest-bearing available
capital. Goodwill from acquisitions is included at acquisition
cost, as long as this reflects its fair value.
As in the prior year, capital employed does not include the
marking to market of other share investments. The purpose
is to provide us with a more consistent picture of our ROCE
performance. Other share investments are recorded in the
Consolidated Balance Sheets at their mark-to-market valuation.
Changes in their market value do not affect adjusted EBIT
but are included in equity, resulting in neither profit nor loss.
This applies in particular to our Gazprom stock.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Value added measures the return that exceeds the cost of
capital employed. It is calculated as follows:
Value added = (ROCE – cost of capital) x capital employed.
The table below shows the E.ON Group’s ROCE, value added,
and their derivation.
E.ON Group ROCE and Value Added
€ in millions 2009 2008
Adjusted EBIT 9,646 9,878
Goodwill, intangible assets, and property,
plant, and equipment 1 85,930 80,487
+ Shares in affiliated and associated
companies and other share
investments 12,803 12,737
+ Inventories 4,518 4,774
+ Accounts receivable 11,577 14,416
+ Other non-interest-bearing assets,
including deferred income and
deferred tax assets 23,629 28,493
– Non-interest-bearing provisions 2 7,595 7,784
– Non-interest-bearing liabilities,
including deferred expenses and
deferred tax liabilities 44,498 50,304
– Adjustments 3 2,588 1,664
Capital employed in continuing
operations (at year-end) 83,776 81,155
Capital employed in continuing
operations (annual average) 4 82,459 76,367
ROCE 11.7% 12.9%
Cost of capital before taxes 9.1% 9.1%
Value added 2,144 2,902
1 Goodwill represents final figures following the completion of the purchase-price
allocation (see Note 4 to the Consolidated Financial Statements).
2 Non-interest-bearing provisions mainly include current provisions, such as those
relating to sales and procurement market obligations. They do not include provisions
for pensions or for nuclear waste management.
3 Capital employed is adjusted to exclude the mark-to-market valuation of other
share investments (including related deferred tax effects) and operating liabilities
for certain purchase obligations to minority shareholdings pursuant to IAS 32.
The adjustment to exclude the mark-to-market valuation of other share investments
applies primarily to our shares in Gazprom.
4 In order to better depict intraperiod fluctuations in capital employed, annual
average capital employed is calculated as the arithmetic average of the amounts
at the beginning of the year, the end of the year, and the balance-sheet dates of
the three interim reports. Capital employed in continuing operations amounted
to €82,286 million, €82,405 million, and €83,180 million at March 31, June 30, and
September 30, 2009, respectively.
27

28 Earnings Situation
ROCE and Value Added by Segment
€ in millions
ROCE and Value Added Performance in 2009
Despite a difficult economic environment, the E.ON Group continued
its positive ROCE performance. Next to our stable
adjusted EBIT, we saw primarily an investment-driven increase
in our capital employed. With a ROCE of 11.7 percent in 2009,
we again substantially exceeded our pretax cost of capital.
Value added amounted to €2,144 million.
Central Europe Pan-European Gas 1 U.K. Nordic
2009 2008 2009 2008 2009 2008 2009 2008
Adjusted EBIT 4,817 4,720 1,754 2,631 649 922 535 770
÷ Capital employed 22,171 19,310 17,638 17,594 8,947 10,101 6,098 6,948
= ROCE 21.7% 24.4% 9.9% 15.0% 7.3% 9.1% 8.8% 11.1%
Cost of capital 2 9.2% 9.2% 8.8% 8.8% 9.8% 9.8% 9.3% 9.3%
Value added 2,771 2,935 194 1,091 -224 -71 -30 125
1 Capital employed is adjusted to exclude the mark-to-market valuation of other share investments. This applies primarily to our Gazprom stock.
2 Before taxes.
Central Europe
Central Europe’s 2009 ROCE of 21.7 percent was slightly below
the prior-year figure but continued to be well ahead of its
cost of capital. Its value added was also slightly lower. The
decline was mainly due to an increase in capital employed
resulting in part from consolidation effects and from higher
investments in property, plant, and equipment.
Pan-European Gas
Pan-European Gas’s 2009 ROCE and valued added were significantly
lower. A marked decline in adjusted EBIT was paired
with a slight, investment-driven increase in capital employed.
The key earnings factors were price- and volume-driven earnings
declines in the gas wholesale and upstream businesses.
Despite the disposal of Thüga operations effective December 1,
2009, capital employed increased through the acquisition of
a stake in Yuzhno-Russkoye gas field and through investments
in the upstream business and in gas infrastructure.

Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
U.S. Midwest Energy Trading New Markets Corporate Center E.ON Group
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
384 395 949 645 862 90 -304 -295 9,646 9,878
6,260 6,537 527 868 19,067 15,596 1,751 -587 82,459 76,367
6.1% 6.0% n/a n/a 4.5% 0.6% – – 11.7% 12.9%
8.7% 8.7% n/a n/a 10.4% 10.4% – – 9.1% 9.1%
-163 -176 n/a n/a -1,125 -1,528 – – 2,144 2,902
U.K.
U.K.’s ROCE declined to 7.3 percent in 2009, which is below
its cost of capital. However, this performance is mainly attributable
to the transfer of activities (primarily gas contracts)
to the Energy Trading market unit. Adjusted for this special
effect, U.K.’s underlying operating business increased its
ROCE year on year and earned its cost of capital. Operational
improvements in the retail business constituted the key
factor. Currency-translation effects were almost solely responsible
for the significant decline in capital employed, which
in local currency was only slightly below the prior-year level.
Nordic
Nordic’s ROCE declined to 8.8 percent, slightly below its cost
of capital. Nordic’s ROCE performance primarily reflects earnings-side
effects like the sale of hydro capacity in the Statkraft
transaction and a reduction in power production due to outages
at nuclear power stations. The decline in capital employed
is mainly attributable to the sale of hydro capacity and to
currency-translation effects.
U.S. Midwest
U.S. Midwest’s ROCE increased slightly compared with the
prior year. The main factor was a decline in capital employed
resulting from a goodwill impairment charge recorded in
2008. Capital employed in the underlying business had been
increasing due to ongoing growth in regulated assets but
was not matched by growth on the earnings side due to lower
prices and sales volumes.
Energy Trading
Due to the structural particularities of the trading business,
Energy Trading’s ROCE and value added have very limited
information value and are not included here.
New Markets
The increase in capital employed in our New Markets segment
is chiefly attributable to the inclusion of Enel/Acciona assets
for the entire financial year and the addition of new capacity
at Climate & Renewables. We expect these long-term investments
to generate earnings increases and create added value
in the years ahead.
29

30 Financial Condition
Cash-Effective and Economic Investments
Our cash-effective investments totaled €9.2 billion in 2009,
half the 2008 figure. We invested €8.4 billion in property, plant,
and equipment and intangible assets (prior year: €9 billion).
Share investments totaled €0.8 billion (prior year: €9.4 billion).
Cash-Effective Investments
€ in millions 2009 2008 +/- %
Central Europe 3,256 3,188 +2
Pan-European Gas 1,610 1,215 +33
U.K. 897 1,162 -23
Nordic 1,104 939 +18
U.S. Midwest 545 650 -16
Energy Trading 53 8 +563
New Markets 1,881 3,305 -43
Corporate Center -146 7,939 –
Total 9,200 18,406 -50
Outside Germany 6,644 15,415 -57
Our economic investments are equal to our cash-effective
investments plus the value of debt acquired and asset swaps.
Economic Investments
€ in millions 2009 2008
Cash-effective investments 9,200 18,406
Debt acquired – 3,464
Asset swaps 2,794 4,366
Total 11,994 26,236
Central Europe invested €68 million more in 2009 than in
2008. Investments in property, plant, and equipment and in
intangible assets rose by €74 million to €3,039 million. Central
Europe invested €1,737 million in power generation assets.
This €271 million increase resulted primarily from investments
in the Malzenice and Plattling power plant projects (which
were consolidated in 2009) and from investments at generation
assets of France-based SNET, which were included only
in the second half of 2008. In its network business, Central
Europe invested about €200 million less, due in part to lower
expenditure for network connections for offshore wind farms in
the German North Sea. Share investments of €217 million were
slightly (€6 million) below the prior-year figure (€223 million).
Pan-European Gas invested €1,610 million. Of this figure,
€1,117 million (prior year: €943 million) went towards property,
plant, and equipment and intangible assets. It consisted
mainly of investments in the exploration business and in gas
infrastructure. Share investments of €493 million (prior year:
€272 million) consisted mainly of payments to acquire a stake
in Yuzhno-Russkoye gas field and payments to MEON, an
affiliated company.
U.K. invested about €864 million (prior year: €1,120 million) in
property, plant, and equipment and intangible assets and
€33 million (prior year: €42 million) in share investments. In
local currency, investments decreased by 14 percent from
the prior year. U.K.’s expenditure mainly related to investments
in its gener ation fleet (including the construction of Grain
gas-fired CHP plant) and in its distribution network.
Nordic invested €165 million more than in the prior year. It
invested €810 million (prior year: €923 million) in intangible
assets and property, plant, and equipment to maintain and
expand existing production plants and to upgrade and modernize
its distribution network. Share investments totaled
€294 million (€16 million). The current-year figure contains a
compensation payment to Statkraft in conjunction with the
acquisition of minority interests in E.ON Sverige.
U.S. Midwest’s investments were lower than in the prior year
due to the completion of flue-gas desulfurization projects
(Ghent 4 in June 2008, Ghent 2 in March 2009) and lower spending
on the new generation unit at Trimble County.
The New Markets segment invested about €1.9 billion in 2009.
Climate & Renewables invested €1,031 million, less than in
2008 (€1,484 million). The majority of investments went towards
large wind-power projects in the United States. Russia invested

€403 million, mainly in its new-build program. The significantly
higher investments of €644 million recorded in the prior
year are primarily attributable to the increase in E.ON’s stake
in power producer OGK-4 (€246 million). Italy’s investments
of €172 million (prior year: €860 million) related mainly to the
refit of Terni hydroelectric station and the installation of
desulfurization equipment at Monfalcone power station. The
high 2008 figure reflects an intragroup equity transfer to
establish the Italy market unit. Spain’s investments of €275 million
primarily reflected the two new CCGTs (in Escatrón and
Algeciras) and the installation of emission-abatement equipment
at Puente Nuevo power station.
The high prior-year investments recorded under Corporate
Center consisted primarily of the acquisition of a portfolio of
assets from Enel/Acciona and Endesa with operations mainly
in Italy, Spain, and France.
Cash Flow and Financial Position
E.ON presents its financial condition using, among other
financial measures, cash provided by operating activities of
continuing operations and economic net debt.
The E.ON Group’s cash provided by operating activities of continuing
operations in 2009 was 34 percent higher than in 2008.
Cash Provided by Operating Activities
of Continuing Operations
€ in millions 2009 2008 +/-
Central Europe 5,180 4,016 +1,164
Pan-European Gas 645 2,081 -1,436
U.K. 1,562 893 +669
Nordic 523 835 -312
U.S. Midwest 342 271 +71
Energy Trading 1,122 -1,452 +2,574
New Markets 1,010 140 +870
Corporate Center -1,330 -46 -1,284
Cash provided by operating
activities of continuing
operations 9,054 6,738 +2,316
Maintenance investments 1,445 1,648 -203
Growth and replacement
investments, acquisitions, other 7,755 16,759 -9,004
Cash-effective effects from
disposals 4,925 432 +4,493
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Central Europe’s cash provided by operating activities was significantly
higher than the prior-year figure. The main positive
factors were the addition of the gas business in Romania and
the inclusion of operations in France, cost savings, higher
network charges, and improvements in working capital. These
were partially offset by lower interest income.
Pan-European Gas’s cash provided by operating activities was
down significantly. The main cause was E.ON Ruhrgas AG’s gas
business, whose cash provided by operating activities was
adversely affected by higher payments for hedging transactions,
the overall downturn of the gas business, and non-recurring
tax payments. These factors were only partially offset by positive
effects from storage usage resulting from significantly
lower prices for gas put into storage. E.ON Földgáz Trade also
benefited mainly from lower prices for gas put into storage.
The €553 million fine imposed on E.ON Ruhrgas by the European
Commission for alleged market sharing also had a negative
impact on cash provided by operating activities.
U.K.’s cash provided by operating activities was up €669 million
year on year mainly due to inflows from working capital
movements offset by significantly lower adjusted EBIT and
by currency effects of -€186 million. The working-capital
inflows arose from operational improvements and a positive
impact from declining wholesale prices, resulting from the
time lag between payments for commodity purchases and
collecting cash from customers.
The sharp decline in Nordic’s cash provided by operating activities
is attributable to lower sales volumes in the nuclear
business due to maintenance and modernization projects and
to the sale of hydro assets to Statkraft in 2008. Tax payments
related to restructuring measures also had a negative effect.
Currency-translation effects constituted another sig nificant
negative factor.
31

32 Financial Condition
U.S. Midwest’s cash provided by operating activities was
higher, mainly due to lower working capital as a result of lower
gas prices, partially offset by damage from a winter storm in
the first quarter of 2009.
Energy Trading recorded €1,122 million in cash provided by
operating activities. Because of Energy Trading’s central position
in the E.ON Group’s energy procurement and sales operations,
its cash flow is considerably affected by intragroup
settlement processes. In 2009, cash provided by operating activities
was positively influenced by earnings development and
by intragroup contributions. The negative figure recorded in
2008 resulted from working-capital effects in the wake of
integration measures, an increase in its inventory of carbon
allowances, and intragroup payments.
Cash provided by operating activities at the New Markets segment
was significantly higher than the prior-year figure due
predominantly to the inclusion of Endesa operations beginning
in the second half of 2008, a solid operating performance, and
a VAT refund on investments made in 2008 at Spain.
The Corporate Center segment’s cash provided by operating
activities was considerably below the prior-year level. Higher
interest payments relating to the financing of our investment
program and lower intragroup tax contributions were the
main factors.
Consolidated Statements of Cash
Flows (Summary)
€ in millions 2009 2008
Cash provided by operating activities of
continuing operations 9,054 6,738
Cash provided by (used for) investing
activities of continuing operations -3,399 -17,078
Cash provided by (used for) financing
activities of continuing operations -5,170 11,391
Net increase (decrease) in cash and cash
equivalents maturing 485 1,051
Liquid funds as shown on December 31 6,116 6,348
Cash provided by investing activities amounted to -€3,399 million
in 2009 (prior year: -€17,078 million). The significantly
higher 2008 figure mainly reflects the acquisition of a portfolio
of assets from Enel/Acciona and Endesa with operations
mainly in Italy, Spain, and France. The 2009 figure was positively
impacted by the disposal of generating capacity and the
Thüga Group.
Cash provided by financing activities amounted to -€5,170 million
(prior year: €11,391 million) and was primarily affected
by E.ON AG’s dividend payout and the net repayment of financial
liabilities. A net increase in financial liabilities was mainly
responsible for the significantly positive prior-year figure.
Note 29 to the Consolidated Financial Statements contains
further information about the Consolidated Statements of
Cash Flows.
Our economic net debt declined by €281 million, from
-€44,946 million at year-end 2008 to -€44,665 million at yearend
2009. Our strong cash provided by operating activities and
the proceeds from disposals more than offset our significant
investments in property, plant, and equipment and E.ON AG’s
dividend payout.
The calculation of economic net debt includes the fair value
(net) of currency derivatives used for financing transactions
(but excluding transactions relating to our operating business
or asset management) in order to also reflect the foreigncurrency
effects of financial transactions which, for accounting
reasons, would not be included in the components of net
financial position.

Economic Net Debt
€ in millions
Finance Strategy
December 31
2009 2008
Liquid funds 6,116 6,348
Non-current securities 3,670 5,017
Total liquid funds and non-current
securities 9,786 11,365
Financial liabilities to banks and third
parties -35,579 -39,095
Financial liabilities to Group companies -2,198 -1,963
Total financial liabilities -37,777 -41,058
Net financial position -27,991 -29,693
Fair value (net) of currency derivatives
used for financing transactions 1 -6 1,988
Provisions for pensions -2,884 -3,559
Asset retirement obligations -15,050 -14,839
Less prepayments to Swedish nuclear
fund 1,266 1,157
Economic net debt -44,665 -44,946
Adjusted EBITDA 13,526 13,385
Debt factor 3.3 3.4
1 Does not include transactions relating to our operating business or asset
management.
Equity and debt capital are both important sources of funding
for the E.ON Group. E.ON’s finance strategy therefore keeps the
interests of shareholders and debt investors equally in view.
The main focus of our finance strategy is on E.ON’s capital
structure, which we monitor using debt factor. Debt factor is
our economic net debt divided by adjusted EBITDA. Economic
net debt includes not only our financial liabilities but also
our provisions for pensions and asset retirement obligations.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
We have defined 3 as our target debt factor, which is derived
from our target rating of single A flat (A/A2). An A/A2 rating
makes it possible for E.ON to have an efficient capital structure,
gives us unrestricted access to all segments of the capital
market, and provides us with a risk buffer for unforeseeable
events. Our target rating also fits the requirements of a
leading utility company and is a solid rating compared with
those of our competitors. According to the methodologies
currently used by rating agencies, a debt factor between 2.8
and 3.3 is compatible with an A/A2 rating.
We actively manage E.ON’s capital structure. If our debt factor
is significantly above 3, we apply strict investment discipline.
We also utilize alternative funding concepts such as portfolio
measures or capital increases.
Our target dividend payout ratio is another component of
our finance strategy. The annual target payout ratio is
between 50 and 60 percent of adjusted net income. For years,
E.ON has pursued a stable and consistent dividend policy
and will continue to do so beyond 2009. This ensures that our
shareholders have a long-term, value-enhancing investment
with a stable return.
33

34
Financial Condition
Funding Policy and Initiatives
Our funding policy is designed to give E.ON access to a variety
of financing resources at any time.
As a rule, external funding is carried out by our Dutch finance
subsidiary E.ON International Finance B.V. under guarantee
of E.ON AG or by E.ON AG itself, and the funds are subsequently
on-lent in the Group.
Our funding policy is based on the following principles: First,
we use a variety of markets and debt instruments to maximize
the diversity of our investor base. Second, we issue bonds
with terms that give our debt portfolio a broadly balanced
maturity profile. Third, we combine large-volume benchmark
issues with smaller issues that take advantage of market
opportunities as they arise.
In the fall of 2007, E.ON launched its funding program. Since
that time, E.ON has funded more than €27.4 billion through
bonds and loans. The bond issuances have consisted of a
number of benchmark bonds denominated in euros, pounds
sterling, U.S. dollars, Swiss francs, and Swedish kroner. E.ON
has also issued smaller bonds in a variety of currencies and
taken advantage of other financing instruments such as
promissory notes. We issued about €5.9 billion of debt in 2007
and about €13.4 billion in 2008. We successfully concluded
our funding program with about €8.1 billion of further issuances
in 2009.
Public credit markets were at times difficult in 2009, particularly
in the first quarter. Compared with other companies,
E.ON has very good access to capital markets. But in early 2009,
we also had to accept significantly wider credit spreads
despite our stable A rating. On the positive side, wider spreads
were accompanied by lower nominal interest rates. Despite
volatile market conditions, we successfully issued a number
of benchmark bonds in the first quarter of 2009, and each
was significantly oversubscribed. This underscores the fact
that the E.ON Group continues to be very attractive to investors.
Credit spreads narrowed during the remainder of 2009.
On balance, the financial crisis has so far had no significant
adverse effects on the E.ON Group’s refinancing costs.
E.ON issued most of its 2009 debt in the first quarter. We used
some of these funds to conduct prudent liquidity management.
In February 2009, E.ON made a public tender offer for
the €4.25 billion bond that matured in May 2009. The face
value of the bonds repurchased under the offer was €1.54 billion,
or 36 percent of the bond’s total face volume. E.ON
repaid the bond in its entirety and on schedule in late May
2009. Moreover, funds generated by debt issuances in 2009
were used to reduce our short-term liabilities in the form of
commercial paper (“CP”).
With the exception of a U.S.-dollar-denominated bond issued
in 2008, all E.ON bonds currently outstanding were issued
under our Debt Issuance Program (“DIP”). In December 2009,
the DIP was, as planned, extended for another year. At this
time, the maximum allowable issuance volume was increased
from €30 billion to €35 billion. We had about €27 billion
worth of bonds outstanding under our DIP at year-end 2009.
Large E.ON bonds are included in relevant bond indices, such
as the iBoxx Non-Financials and the iBoxx Utilities. Selection
for inclusion in indices is subject to several criteria, such as a
bond’s rating, maturity, and minimum outstanding.
In addition to our DIP, we have a €10 billion European CP program
and a $10 billion U.S. CP program under which we can
issue short-term CP. We use CP to finance short-term funding
peaks and to further diversify our investor base. Under both
programs, we had just €1.5 billion outstanding at year-end
2009, substantially less than the €7.3 billion we had outstanding
at year-end 2008.

Financial Liabilities
€ in billions Dec. 31, 2009 Dec. 31, 2008
Bonds 1 29.0 25.3
EUR 18.3 17.5
GBP 4.8 3.1
USD 2.9 2.7
CHF 1.5 0.8
SEK 0.6 0.5
JPY 0.7 0.6
Other currencies 0.2 0.1
Promissory notes 1.4 1.3
CP 1.5 7.3
Other liabilities 5.9 7.2
Total 37.8 41.1
1 Includes private placements.
Notes 26 and 27 to the Consolidated Financial Statements
contain more information about E.ON’s bonds and liabilities,
contingencies, and other commitments.
E.ON successfully extended the 364-day tranche (Tranche A)
of its syndicated credit facility. Tranche A now matures on
November 25, 2010. As planned, we reduced its volume from
€7.5 billion to €4 billion, as our future liquidity requirements
will be reduced due to our well-balanced maturity profile and
lower investment expenditures. There were no changes to our
approximately €5 billion long-term tranche (Tranche B),
which matures on December 2, 2011. We did not utilize our syndicated
credit facility at any time in 2009.
Standard & Poor’s (“S&P”) long-term rating for E.ON is A;
Moody’s long-term rating for E.ON is A2. The short-term ratings
are A-1 (S&P) and P-1 (Moody’s). The ratings assigned by both
agencies thus correspond to E.ON’s target rating. Both S&P
and Moody’s confirmed their long-term and short-term ratings
for E.ON, all with a stable outlook, in respective publications
issued in December 2009.
E.ON AG Ratings
Long
term
Short
term Outlook
Moody’s A2 P-1 stable
S&P A A-1 stable
E.ON Stock
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
In a volatile stock market, E.ON stock finished 2009 above its
2008 year-end closing price (+9 percent factoring in the reinvestment
of the dividend), thereby outperforming its peer
index, the STOXX Utilities, which rose by 7 percent during the
same period. However, E.ON stock underperformed the German
stock market (the DAX was up 24 percent) and the European
stock market (the EURO STOXX 50 was up 26 percent) in 2009.
E.ON Stock
Dec. 31, 2009 Dec. 31, 2008
Earnings per share 1 (€) 4.41 0.69
Dividend per share (€) 1.50 1.50
Shares outstanding (millions) 1,905 1,905
Closing price (€) 29.23 2 28.44 2
Market capitalization (€ in billions) 3 55.7 54.2
1 Attributable to shareholders of E.ON AG.
2 Year-end closing price on December 30.
3 Based on shares outstanding.
35

36
Asset Situation
Non-current assets at year-end 2009 rose by 4 percent compared
with the figure at year-end 2008, primarily due to investments
in property, plant, and equipment.
Current assets decreased by 18 percent. The main factors
were lower current receivables from derivative financial
instruments and the disposal of assets held for sale.
Our equity ratio of 29 percent is 4 percentage points above
the figure recorded at year-end 2008, mainly due to our solid
earnings.
Non-current liabilities increased by €4.4 billion to €70.8 billion.
E.ON successfully placed long-term bonds with a book value
of about €8 billion in 2009. This was partially offset by the
reclassification (due to maturity dates) of non-current to current
liabilities along with a reduction of operating liabilities.
Current liabilities declined by 27 percent from year-end 2008,
chiefly due to the repayment of short-term debts and a
reduction of operating liabilities.
Consolidated Assets, Liabilities, and Equity
The following key figures underscore that the E.ON Group
has a solid asset and capital structure:
• Non-current assets are covered by equity at 39 percent
(December 31, 2008: 35 percent).
• Non-current assets are covered by long-term capital at
102 percent (December 31, 2008: 96 percent).
Additional information about our asset situation is contained
in Notes 4 to 26 to the Consolidated Financial Statements.
Summary Statement on E.ON’s Earnings, Financial,
and Asset Situation
Our earnings situation (adjusted EBIT and adjusted net income
were only slightly below the high prior-year figures despite
the difficult economic environment), our continued positive
value performance, and the slight improvement in our financial
key figures are indicative of the E.ON Group’s solid financial
situation in 2009.
€ in millions Dec. 31, 2009 % Dec. 31, 2008 %
Non-current assets 113,068 74 108,717 69
Current assets 39,568 26 48,107 31
Total assets 152,636 100 156,824 100
Equity 43,955 29 38,444 25
Non-current liabilities 70,828 46 66,425 42
Current liabilities 37,853 25 51,955 33
Total equity and liabilities 152,636 100 156,824 100

Financial Statements of E.ON AG
E.ON AG prepares its Financial Statements in accordance
with the German Commercial Code and the German Stock
Corporation Act. E.ON AG’s net income for 2009 amounts to
€3,834 million compared with €2,889 million in the prior
year. After transferring €976 million to retained earnings, net
income available for distribution totals €2,858 million.
Balance Sheet of E.ON AG (Summary)
€ in millions
December 31,
2009 2008
Intangible assets and property, plant,
and equipment 146 155
Financial assets 38,341 27,564
Non-current assets 38,487 27,719
Receivables from affiliated companies 23,267 39,852
Other receivables and assets 4,909 3,777
Liquid funds 2,025 415
Current assets 30,201 44,044
Total assets 68,688 71,763
Equity 12,453 11,475
Special items with provision component 384 393
Provisions 4,954 4,194
Liabilities to affiliated companies 46,345 42,902
Other liabilities 4,552 12,799
Total equity and liabilities 68,688 71,763
E.ON AG’s income from equity interests increased by €1,692 million
to €6,689 million. This is mainly attributable to the
impairment charges recorded in the prior year on the financial
assets of subsidiaries, which had an adverse effect on
income from equity interests. Including intragroup tax transfers,
E.ON Energie AG transferred €4,004 million of profit
and E.ON Ruhrgas Holding GmbH transferred €3,073 million
of profit in 2009.
The negative figure recorded under other expenditures and
income (net) declined by €369 million year on year to
-€487 million. Negative effects from financial transactions
constituted the main factor.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Income taxes include current taxes for 2009 and for prior
years and taxes for prior years due to outstanding tax audits.
Income Statement of E.ON AG (Summary)
€ in millions 2009 2008
Income from equity interests 6,689 4,997
Interest income -1,195 -965
Other expenditures and income -487 -118
Income from continuing operations
before income taxes 5,007 3,914
Income taxes -1,173 -1,025
Net income 3,834 2,889
Net earnings carried forward – 30
Net income transferred to retained
earnings -976 -62
Net income available for distribution 2,858 2,857
At the Annual Shareholders Meeting on May 6, 2010, management
will propose that net income available for distribution
be used to pay a cash dividend of €1.50 per ordinary share.
The stable development of our operating earnings is the main
factor enabling us to maintain the dividend at the prior-year
level. We believe that in this way E.ON stock remains attractive
to investors.
If the number of ordinary shares is reduced as a result of the
repurchase of own shares by the time of the Annual Shareholders
Meeting, we plan to amend the proposed resolution
in such a way that the amount proportionate to those repurchased
shares (at an unchanged distribution of €1.50 per ordinary
share) be carried forward as income.
The complete Financial Statements of E.ON AG, with the
unqualified opinion issued by the auditors, PricewaterhouseCoopers
Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft,
Düsseldorf, will be announced in the electronic
Bundesanzeiger. Copies are available on request from E.ON AG
and at www.eon.com.
Disclosure of Takeover Barriers
The disclosures pursuant to Section 289, Paragraph 4, and
Section 315, Paragraph 4 of the German Commercial Code,
which are part of the Combined Group Management Report,
are in the chapter Disclosure of Takeover Barriers on pages
162–164 of this report.
37

38 Employees
Workforce Figures
At year-end 2009, the E.ON Group had 88,227 employees worldwide,
about 6 percent less than at year-end 2008. In addition,
E.ON had 2,556 apprentices and 330 board members and
managing directors. The changes in workforce figures at the
market units are largely attributable to restructuring measures
in Eastern Europe, the United Kingdom, and Russia and
to asset sales.
Employees 1
December 31
2009 2008
+/- %
Central Europe 48,126 44,142 +9
Pan-European Gas 3,143 9,827 -68
U.K. 16,098 17,480 -8
Nordic 5,570 5,826 -4
U.S. Midwest 3,119 3,110 –
Energy Trading 1,075 885 +21
New Markets 7,976 9,214 -13
Corporate Center 2 3,120 3,054 +2
Total 88,227 93,538 -6
1 Figures do not include board members, managing directors, or apprentices.
2 Includes E.ON IS.
The changes in the workforce figures for the Central Europe
market unit are predominantly attributable to two effects.
First, Central Europe’s and Pan-European Gas’s operations in
Romania were combined at Central Europe. Second, restructuring
at Central Europe East led to a reduction in the number
of employees.
The transfer of about 6,000 employees in Romania to Central
Europe and the sale of Thüga were responsible for the significant
workforce reduction at Pan-European Gas.
U.K.’s headcount declined by about 8 percent, mainly due
to restructuring measures in the retail and energy services
businesses.
The reduction in Nordic’s workforce is mostly due to restructuring
in sales and services.
Energy Trading’s workforce increased by 21 percent, mainly
due to further business expansion and the addition of trading
operations in Italy.
There were countervailing effects in New Markets’ employee
figures. There was an 18-percent reduction in headcount at
Russia (due mainly to efficiency-enhancement measures) and
at Italy (due to the sale of power stations and the transfer
of trading operations to Energy Trading). By contrast, Climate
& Renewables’ headcount increased by 22 percent due to
business expansion.
Geographic Profile
At year-end 2009, the E.ON Group employed 52,591 people,
or 60 percent of our workforce, outside Germany. This represents
a decrease from the figure of 57,134 employees, or
61 percent of our workforce, for year-end 2008. These figures
do not include board members, managing directors, or
apprentices.

Employees by Region 1
Gender and Age Profile, Part-Time Staff
At the end of 2009, around 27 percent of our employees were
women. Women accounted for 12 percent of our senior managers
(an increase from the prior-year figure) and 5 percent
of our top executives. The average E.ON Group employee was
42 years old and had worked for us for about 14 years. A total
of 8,235 E.ON Group employees were on a part-time schedule,
of whom 4,490, or 55 percent, were women. Employee turnover
resulting from voluntary terminations averaged around
5 percent across the organization.
Employer Branding
Dec. 31, 2009
Germany 35,636
United Kingdom 17,179
Romania 6,772
Sweden 5,317
Hungary 4,913
Russia 4,702
USA and Canada 3,256
Czech Republic 2,735
Bulgaria 2,108
Other 2 5,609
1 Figures do not include board members, managing directors, or apprentices.
2 Includes Italy, Spain, France, the Netherlands, Poland, and certain other countries.
With the pace of demographic change increasing, the war
for talent is becoming more intense. E.ON needs to be perceived
as an attractive employer for us to hire and retain
the best-qualified and most talented people. To succeed in
this effort, we seek out opportunities to meet and dialog
with potential hires from a variety of target groups. This enables
us to communicate with them at eye level and address their
needs and interests. In this effort, we use a wide range of
channels, including career events and social media. As an
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
international company, E.ON brings together staff from all
our market units to refine our employer branding, to identify
and address challenges, and to learn from one another. For
example, we are very active in marketing our company to
potential hires among university students, secondary-school
students, and people interested in an apprenticeship. We also
make a special effort to reach out to people from minority
groups. We offer excellent job opportunities and graduate
programs, promote the development of women employees,
foster a range of employee networks, and offer guidance and
advice to employees interested in pursuing international
careers. Our steadily improving rankings in independent surveys—including
Best Workplaces in Germany and Best Workplaces
in Europe conducted by the Great Place to Work Institute—indicate
that our efforts are working.
E.ON Graduate Program
Since it was launched in 2005, the E.ON Graduate Program has
accepted 235 trainees Group-wide, 69 in 2009 alone. A total
of 133 trainees have completed the program successfully and
started their careers with our company.
HR Development: Talent Management
The purpose of our Group-wide management review process
is to identify future leaders and evaluate our managers’ performance
and potential on the basis of uniform standards.
The review ensures that our career and succession planning
extends across all levels of hierarchy in our organization. Its
results are incorporated into our Group-wide succession planning
and our target-oriented HR development planning.
Group-wide HR development costs amounted to around
€73 million in 2009. The majority of this training is conducted
by E.ON Academy, our corporate university.
39

40
Top Executives
Changes in our market environment as well as our own PerformtoWin
program also affect our top executives. We intend
to reduce the number of management positions by adjusting
our management structures to market realities. Enhancing
our focus on performance will require a substantial contribution
from all executives. To assess their individual performance
with greater precision, we have expanded our use of key
performance indicators and increased the performance-based
component of variable compensation and long-term incentive
programs.
Compensation, Pension Plans, Employee
Participation
Attractive compensation and appealing fringe benefits are
essential to a competitive work environment. Company contributions
to employee pension plans represent an important
component of an employee’s compensation package and
have long had a prominent place in the E.ON Group. They
are an important foundation of employees’ future financial
security and also foster employee retention. E.ON companies
supplement their company pension plans with attractive
programs to help their employees save for the future. Another
factor in employee retention is enabling them to participate
in their company’s success. Since 2007, Level 3 senior managers
in Germany pursuant to our Group-wide job-grading system
have been included in the E.ON Share Performance Plan,
broadening access to the program beyond top executives.
Our employee stock purchase program became even more
attractive through an increase in the tax-free company contribution.
In 2009, 22,091 employees purchased a total of
925,282 shares of E.ON stock; 57 percent of employees participated
in the program, down slightly from 58 percent in 2008.
Overview of the Compensation Systems for the
Board of Management and Supervisory Board
We have compiled a Compensation Report for the 2009 financial
year which provides an overview of the compensation
plans for the Board of Management and Supervisory Board
and each board member’s E.ON Group compensation. The
report applies the regulations of the German Commercial
Code amended to reflect the Management Board Compensation
Disclosure Law as well as the principles of the German
Corporate Governance Code. The Compensation Report, which
is part of this Combined Group Management Report, can be
found on pages 148–155.
Apprentice Programs
E.ON has always placed great emphasis on apprentice programs.
In 2009, apprentices accounted for about 7 percent
of the E.ON Group’s workforce in Germany, almost unchanged
from the prior year. Established in 2003, the E.ON training
initiative to combat youth unemployment was continued in
2009. Beyond our regular apprenticeship programs, over
950 young people in Germany were offered prospects for the
future through vocational training, an internship to prepare
them for training, and school projects.
Apprentices in Germany
Research and Development (“R&D”)
Dec. 31, 2009
Central Europe 2,220
Pan-European Gas 221
E.ON AG/Other 1 115
E.ON Group 2,556
1 Includes E.ON IS.
In 2009, E.ON further enhanced its R&D activities. We have
long taken a two-pronged approach to our wide range of
R&D activities.
First, we optimize our existing facilities and processes in
order to find innovative solutions for operational challenges
and to operate our facilities efficiently and economically
across their lifecycle.

Second, we actively support the development of key technologies
and accelerate their commercial viability through
innovate.on, our technology initiative. We believe this is part
of our responsibility as one of the world’s leading energy
companies. The purpose of these activities is to deploy research
results in operational applications and to actively promote
their implementation on a commercial scale.
R&D expenses pursuant to IAS 38 totaled about €62 million
in 2009 (prior year: €53 million). Overall, 229 employees work
in R&D at E.ON.
In addition to E.ON’s investments to optimize and refine
technologies, E.ON also actively promotes basic research and
provided €17 million of financial support for energy research
at universities and institutes in 2009.
E.ON’s total expenditures for new technology (which include
support for university research, R&D, and demonstration
projects) amounted to €105 million (prior year: €106 million).
Corporate Responsibility (“CR”)
Faced with globalization, the worldwide increase in energy
demand, and climate change, the energy industry is undergoing
profound changes, changes that can only be successfully
managed in accord with society’s expectations and values.
Our CR organization provides support in dealing with these
expec tations in a professional way and helping E.ON achieve
a balance between the interests of its various stakeholders.
Our objective is to be an industry leader in responsible
energy supply.
To help us get there, we further refined our CR strategy and
programs and defined clear targets and initiatives for 2008–
2010. We established Group-wide standards and policies and
integrated them into central aspects of our corporate strategy.
We also analyzed and evaluated the risks associated with
key CR areas such as marketplace, community, climate protection,
environmental protection, health management, and
occupational safety. In addition, we rolled out specific projects
and programs to promote CR in these core areas and to
further sharpen E.ON’s CR profile.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Our performance in ratings and rankings in 2009 again demonstrates
that we are on the right course. Among our most
important successes was that we were again included in the
Dow Jones Sustainability Index, the world’s leading index of
its kind. This sends an important signal to capital markets and
to the increasing number of investors who factor sustainability
criteria into their investment decisions.
E.ON emitted 144.9 million metric tons of CO 2 from electricity
production in 2009, 10.3 million metric tons less than in 2008.
The main factor was that we produced less power in 2009
than in 2008. Our carbon intensity declined by 1.6 percent to
0.476 metric tons per MWh. Going forward, this trend will
become more pronounced as we add more new, high-efficiency
fossil-fueled capacity and more renewables capacity. Our
carbon emission figures include our CHP units in the United
Kingdom pursuant to existing legal obligations.
More information about our CR efforts is available at
www.eon.com/responsibility, where you will also find our CR
Report, which will be released in May 2010. This information
is not to be considered part of the Combined Group Management
Report.
41

42 Risk Report
Risk Management System
Additional Reports on
E.ON Group Financial
Management (including
Liquidity)
Additional Separate
Reports on E.ON Group
Commodity and Credit
Risks
Risk Management, Monitoring, and Reporting
Corporate
Center
Risk Committee
Central
Europe
Pan-European
Gas
E.ON AG
Board of Management
Quarterly KonTraG Risk
Reporting
Financial Risks
Market Risks
External/Regulatory Risks
Operating Risks
Strategic Risks
Other Risks
Our risk management system consists of a number of components
that are embedded into E.ON’s entire organizational
structure and processes. As a result, our risk management
system is an integral part of our business and decision-making
processes. The key components of our risk management
system include our Group-wide guidelines and reporting systems;
our standardized Group-wide strategy, planning, and
controlling processes; Internal Audit activities; the separate
Group-wide risk reporting conducted pursuant to the Corporate
Sector Control and Transparency Act (“KonTraG”); and the
establishment of risk committees. Our risk management
system is designed to enable management to recognize risks
early and to take the necessary countermeasures in a timely
manner. We continually review our Group-wide planning, controlling,
and reporting processes to ensure that they remain
effective and efficient. As required by law, the effectiveness
of our risk management system is reviewed regularly by
Internal Audit.
Audit Report
Audits
E.ON AG Supervisory Board
Audit and Risk Committee
Internal Audit
U.K. Nordic U.S. Midwest Energy
Trading
Risk Management and Insurance
Planning and Controlling
Process
Earnings Report/
Medium-Term Planning
New
Markets
E.ON Risk Consulting GmbH, a wholly owned subsidiary of
E.ON AG, is responsible for insurance-risk management in
the E.ON Group. It develops and optimizes solutions for E.ON’s
operating risks by using insurance and insurance-related
instruments and secures the necessary coverage in international
insurance markets. To this end, E.ON Risk Consulting
GmbH is, among other things, responsible for management
of client data and insurance contracts, claims management,
the accounting of risk covering and claims, and all associated
reporting.
Risk Committee
In compliance with the provisions of Section 91, Paragraph 2
of the German Stock Corporation Act relating to the establishment
of a risk-monitoring and early warning system, the

E.ON Group has a Risk Committee. The Risk Committee, which
consists of representatives of key E.ON AG divisions and
departments, is responsible for ensuring that the risk strategy
for commodity and credit risks defined by the Board of Management
is implemented, complied with, and further developed.
Risk Situation
In the normal course of business, we are subject to a number
of risks that are inseparably linked to the operation of our
businesses. The E.ON Group, and thus E.ON AG, is exposed to
the following main categories of risk:
Market Risks
Our market units operate in an international market environment
that is characterized by general risks relating to the
business cycle. In connection with the current economic crisis,
E.ON faces risks from declining demand, primarily from industrial
and commercial customers who, increasingly, are cutting
their production and may cut it further. This could result in
us being unable to sell energy we have already procured. In
addition, the entry of new suppliers into the marketplace
along with more aggressive tactics by existing market participants
has created a keener competitive environment
for our electricity business in and outside Germany which
could reduce our margins. E.ON Ruhrgas also faces risks
associated with increased competitive pressure in the gas
sector. Increasing competition in the natural gas market
and increasing trading volumes at virtual trading points and
gas exchanges could result in risks for natural gas purchased
under long-term take-or-pay contracts. On the other hand,
these contracts between producers and importers are subject
to periodic adjustments to the current market situation.
The demand for electric power and natural gas is seasonal,
with our operations generally experiencing higher demand
during the cold-weather months of October through March
and lower demand during the warm-weather months of April
through September. As a result of these seasonal patterns,
our sales and results of operations are higher in the first and
fourth quarters and lower in the second and third quarters.
Sales and results of operations for all of our energy operations
can be negatively affected by periods of unseasonably warm
weather during the autumn and winter months. Our Nordic
market unit also could be negatively affected by a lack of precipitation,
which could lead to a decline in hydroelectric
generation. We expect seasonal and weather-related fluctuations
in sales and results of operations to continue.
We use a comprehensive sales management system and
intensive customer management to minimize these risks.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Commodity Price Risks
The E.ON Group’s business operations are exposed to commodity
price risks. In order to limit our exposure to these risks,
we conduct systematic risk management. The key elements
of our risk management are, in addition to the above-mentioned
binding Group-wide guidelines and Group-wide reporting
system, the use of quantitative key figures, the limitation
of risks, and the strict separation of functions between departments.
To limit commodity price risks, we utilize derivative
financial instruments that are commonly used in the marketplace.
These instruments are transacted with financial institutions,
brokers, power exchanges, and third parties whose
creditworthiness we monitor on an ongoing basis. The creation
of E.ON Energy Trading has enabled us to systematically combine
and consistently manage price risks on Europe’s liquid
commodity markets.
We mainly use electricity, gas, coal, carbon allowance, and
oil price hedging transactions to limit our exposure to risks
resulting from price fluctuations, to optimize systems and
load balancing, and to lock in margins. We also engage in proprietary
commodity trading in accordance with detailed
guidelines and within narrowly defined limits.
Financial Risks
The international nature of E.ON’s business operations
exposes E.ON to risks stemming from sales, earnings, assets,
receivables, liabilities, future payment streams, and investments
in business enterprises outside Germany that are
denominated in currencies other than the euro. This risk results
mainly from transactions denominated in U.S. dollars, pounds
sterling, Swedish kroner, Russian rubles, and the Hungarian
forint as well as net investments outside Germany.
E.ON faces earnings risks from financial liabilities, accounts
payable, and short-term financing with variable interest
rates and from interest derivatives that are based on variable
interest rates.
We also use systematic risk management to manage our
interest-rate and currency risks. Detailed information about
this can be found in Note 31 to the Consolidated Financial
Statements.
E.ON’s operating activities and use of derivative financial
instruments expose E.ON to credit default risks. We use a
Group-wide credit risk management system to systematically
monitor the creditworthiness of our business partners and
regularly calculate our credit default risk. We monitor our
business partners’ credit ratings on the basis of Group-wide
minimum standards.
43

44 Risk Report
E.ON could face liquidity risks due to margin calls resulting
from adverse price developments of derivative financial
instruments.
In addition, E.ON also faces risks from price changes and
losses on the current and non-current investments it makes
to cover its non-current obligations, particularly pension
and asset-retirement obligations. The foundation of our risk
management in this area is a conservative investment strategy
and a broadly diversified portfolio. This does not enable
us to avoid risks to our portfolio (such as those arising from
the financial crisis), but it does enable us to significantly reduce
the extent of their impact.
Even E.ON is not unaffected by the current financial environment.
Although the energy industry is largely non-cyclical,
recession-driven production declines in cyclical industries
could, over time, have a negative impact on our business. In
addition, declining valuations and increased volatility could
require us to write down the value of some of our financial
assets. Furthermore, some of our business partners and
end-customers could default on their payments to us. We
are addressing the increase in counterparty risk by stepping
up our risk-management efforts, particularly with regard to
financial institutions.
Thanks to its very good creditworthiness, E.ON has up to now
had no trouble accessing debt markets. We carry out both
short-term and long-term financial planning to monitor and
manage liquidity risks.
Strategic Risks
Our business strategy involves acquisitions and investments
in our core business as well as disposals. This strategy depends
in part on our ability to successfully identify and acquire, on
acceptable terms, companies that enhance our energy business.
In order to obtain the necessary approvals for acquisitions,
we may be required to divest other parts of our business
or to make concessions or undertakings that materially affect
our business. In addition, there can be no assurance that we
will be able to achieve the returns we expect from any acquisition
or investment. For example, we may fail to retain key
employees; may be unable to successfully integrate new
businesses with our existing businesses; may incorrectly judge
expected cost savings, operating profits, or future market
trends and regulatory changes; or may spend more on the
acquisition, integration, and operations of new businesses
than anticipated. Furthermore, investments and acquisitions
in new geographic areas or lines of business require us to
become familiar with new sales markets and competitors and
expose us to commercial and other risks.
We have comprehensive processes in place to manage these
potential risks. These processes include, in addition to the
relevant company guidelines and manuals, comprehensive
due diligence, legally binding contracts, a multi-stage approvals
process, and shareholding and project controlling. Comprehensive
post-acquisition integration projects also contribute
to successful integration.
In the case of planned disposals, E.ON faces the risk, which is
currently not assessable, of disposals not taking place or being
delayed and the risk that E.ON receives lower-than-anticipated
disposal proceeds. In such projects, it is not possible to determine
the likelihood of these risks. If planned disposals do not
take place or are significantly delayed, this would have a negative
impact on the planned development of our debt factor.
Operational Risks
Technologically complex production facilities are involved in
the production and distribution of energy. Significant parts
of Europe and North America have experienced major power
outages in recent years. The reasons for these outages vary,
although generally they involved a locally or regionally inadequate
balance between power production and consumption,
with single failures triggering a cascade-like shutdown of
lines and power plants following overload or voltage problems.
The likelihood of this type of problem has increased in recent
years following the liberalization of EU electricity markets,

partly due to an emphasis on unrestricted cross-border physically
settled electricity trading that has resulted in a substantially
higher load on the international network, which was
originally designed mainly for purposes of mutual assistance
and operational optimization. As a result, there are transmission
bottlenecks at many locations in Europe, and the high
load has resulted in lower levels of safety reserves in the network.
In Germany, where power plants are located in closer
proximity to population centers than in many other countries,
the risk of blackouts is lower due to shorter transmission
paths and a strongly meshed network. In addition, the spread
of a power failure is less likely in Germany due to the organization
of the German power grid into four balancing zones.
Nevertheless, our electricity operations in and outside Germany
could experience unanticipated operational or other problems
(whose possible causes include extreme weather conditions)
leading to a power failure or shutdown. Operational failures
or extended production stoppages of facilities or components
of facilities could negatively impact our earnings.
We could be subject to environmental liabilities associated
with our nuclear and conventional power operations that
could materially and adversely affect our business. In addition,
new or amended environmental laws and regulations may
result in significant increases in our costs.
The following are among the comprehensive measures we
take to address these risks:
• systematic employee training, advanced training, and
qualification programs
• further refinement of our production procedures,
processes, and technologies
• regular facility and network maintenance and inspection
• company guidelines as well as work and process
instructions
• quality management, control, and assurance
• project, environmental, and deterioration management
• crisis-prevention measures and emergency planning.
Should an accident occur despite the measures we take, we
have a reasonable level of insurance coverage.
In addition, there are currently certain risks relating to legal
proceedings resulting from the E.ON Group’s operations. These
in particular include legal actions and proceedings concerning
price increases (including legal actions to demand repayment
of the increase differential in view of the increasing
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
preponderance of case law ruling that price-adjustment
clauses are invalid in the special-customer segment), alleged
price-fixing agreements, and anticompetitive practices. Court
actions, governmental investigations, proceedings, and other
claims could be instituted or asserted in the future against
E.ON Group companies. We attempt to minimize the risks of
current and future legal proceedings by manag ing these
proceedings appropriately and by designing appropriate contracts
prior to agreements being concluded.
On July 8, 2009, the European Commission fined E.ON Ruhrgas
and E.ON (as joint debtor) €553 million for an alleged marketsharing
agreement with GdF Suez. In September 2009, E.ON
filed an appeal with the European Court of First Instance to
have the ruling overturned. Filing an appeal does not suspend
the fine, which was paid, by the deadline, in October 2009.
We cannot rule out the possibility of subsequent lawsuits.
E.ON is building a hard-coal-fired power plant in Datteln, Germany.
The plant is designed to have a net electric capacity of
about 1,055 MW. The Münster Superior Administrative Court
(“SAC”) issued a decision on September 3, 2009, that declares
void the City of Datteln’s Development Plan (No. 105 E.ON
Power Plant) and the fourth alteration to the Münster
Regional Government’s Regional Plan. The SAC criticized
errors in judgement and, in particular, that the Development
Plan did not sufficiently take into consideration binding
rules contained in North Rhine-Westphalia’s State Development
Plan and State Development Program. The SAC did not
allow an appeal. The City of Datteln and E.ON filed a motion
with the Federal Administrative Court to nullify the SAC’s ruling.
This motion suspends the SAC’s ruling. The Münster
Regional Government dismissed motions filed by interested
parties to suspend the enforceability of certain rulings. This
makes it possible for substantial construction work to continue.
In view of these matters, however, we cannot rule out
the possibility that the power plant will enter service at a
later date than originally planned. In principle, these types of
risks attend our other power and gas new-build projects. We
strive to identify such risks early and to minimize them by
monitoring planning and consents processes.
45

46
Risk Report
In early 2009, the German Federal Cartel Office (“FCO”), as
part of a sector inquiry, sent a number of E.ON companies a
demand for information regarding the capacity situation in
Germany’s gas transport pipeline system. The companies in
question submitted their responses to the FCO. The sector
inquiry was concluded on December 15, 2009, with the publication
of a final report. The FCO’s report did not announce any
capacity-related proceedings against E.ON Group companies.
The European Commission is conducting an antitrust investigation
of E.ON companies for alleged gas-capacity hording.
The Commission has expressed the suspicion that by booking
long-term capacity in the gas transmission system of E.ON
Gastransport (“EGT”), E.ON Ruhrgas has prevented competitors
from gaining access to gas supply markets and con sequently
may have violated laws against anticompetitive practices. In
negotiations with the Commission in 2009, we reached an
agreement in principle that the Commission would terminate
the investigation by means of a commitment decision pursuant
to Article 9 VO 1/2003 under which E.ON Ruhrgas would be
obliged to relinquish a portion of its long-term capacity bookings
in EGT’s system. In view of this agreement, we assume
that the Commission will terminate the investi gation in the
first half of 2010 after concluding further procedural steps.
There are also lawsuits pending against E.ON AG and U.S. subsidiaries
in connection with the disposal of VEBA Electronics
in 2000. In addition, court actions, governmental investigations,
and proceedings, and other claims could be instituted or
asserted in the future against companies of the E.ON Group.
We attempt to minimize the risks of current and future legal
proceedings by managing these proceedings appropriately
and by designing appropriate contracts prior to agreements
being concluded.
E.ON Ruhrgas currently obtains about one fourth of its total
natural gas supply from Russia pursuant to long-term supply
contracts with Gazprom. In addition, E.ON Ruhrgas currently
obtains natural gas from five other supply countries, giving it
one of the most diversified gas procurement portfolios in
Europe. Certain past events in some Eastern European countries
have heightened concerns in parts of Western Europe about
the reliability of Russian gas supplies, even though Russia has
always been a very reliable supplier. Economic or political
instability or other disruptive events in any transit country
through which Russian gas must pass before it reaches its
final destination in Western Europe can have a material adverse
effect on the supply of such gas, and all such events are completely
outside E.ON Ruhrgas’s control.
Regulatory Risks
The political, legal, and regulatory environment in which the
E.ON Group does business is a source of external risks.
Changes to this environment can lead to considerable uncertainty
with regard to planning.
At the request of the Federal Association of New Energy Suppliers
(known by its German abbreviation, “bne”) and LichtBlick,
the German Federal Network Agency (known by its German
abbreviation, “BNetzA”) has initiated regulatory proceedings
against Germany’s four electric transmission system operators
(“TSOs”), including transpower (formerly E.ON Netz).
LichtBlick and the bne are demanding that the agency require
the four TSOs to jointly net out their balancing zones and to
disgorge to suppliers of balancing energy any additional
earnings. In late 2008, transpower and the TSOs of Vattenfall
(50Hertz Transmission) and EnBW had the technology and
procedures in place to avoid any uncoordinated balancing
between these TSOs. There would therefore seem to be no
legal basis for bne and LichtBlick’s claims.
The German Federal Ministry of Economics and Technology
and the BNetzA are planning to make changes in how capacity
is managed on gas transmission pipelines in Germany. It
is anticipated that after the current consultations new draft
amendments to the Gas Network Access Ordinance, as well
as the BNetzA’s regulations, will be presented. The amendments
could affect our existing gas operations.
In 1999, the German Federal Ministry for the Environment
formed a working group (known by its German abbreviation,
“AKEnd”) to design the process and define the criteria for
identifying and selecting a final storage site for German nuclear
waste. Among the AKEnd’s recommendations is that studies
be conducted of five potential above-ground sites and at
least two potential underground sites. The AKEnd has submitted
its recommendations to the Ministry for the Environment.
The German federal government has not yet decided
how it will proceed in this matter.
In late 2009, the BNetzA instituted formal proceedings against
all E.ON Energie regional distribution companies in Germany
that have implemented the new regional structure and against
E.ON Energie for allegedly not complying with unbundling
requirements. The BNetzA plans to treat the proceedings
against E.ON Bayern and E.ON Energie as model-case proceedings
and to suspend the proceedings against the other
regional distribution companies.

E.ON Gastransport will be migrated to incentive-based regulation
in 2010. Prior to migration, the BNetzA will conduct a
benchmarking of Germany’s small and very heterogeneous
group of supraregional gas transmission pipeline operators.
The individual efficiency factor will depend to a large degree
on the parameters used in the benchmarking and will have
an impact on the revenue cap.
On December 29, 2009, the French constitutional council
rejected draft legislation introducing a tax on CO 2 emissions.
The French government then decided to extend the tax to
industries, particularly thermal power generation, that already
participate in the EU-wide Emissions Trading Scheme (“ETS”).
Under discussion is possible compensation for the companies
affected by the carbon tax, compensation that would take
into account their position in the international marketplace
and each industry’s respective energy intensity. The tax is
expected to take effect on July 1, 2010.
The Netherlands is currently drafting legislation that would
require the country’s TSOs to give preferential treatment to
renewable-source electricity and define rules for managing
any resulting bottlenecks. If the proposed legislation is
enacted, it and the actual occurrence of bottlenecks could
adversely affect our power stations in the Netherlands.
The European Commission, the European Parliament, and the
member states approved the third legislative package. In addition
to the complete legal unbundling of electricity and gas
TSOs, the legislative package allows the establishment of an
independent transmission operator (“ITO”) or an independent
system operator (“ISO”). The third legislative package will
affect the entire value chain and will grant national and
European regulatory agencies far-reaching new authority to
intervene in markets. Risks result not only from the increased
scope of intervention options, but also from the legislation
that the member states enact to transpose the third legislative
package into national law, which could go beyond the
package’s guidelines.
In addition, the European Commission, the European Parliament,
and the Council passed the green legislative package
whose purpose is to enable the EU to achieve its climate
targets. By 2020, renewables are supposed to meet 20 percent
of the EU’s energy consumption, while greenhouse-gas
emissions are to be reduced by 20 percent from 1990 levels.
ETS emission allowances have so far been allocated at no
cost. No-cost allocation will gradually be replaced by the auctioning
of allowances. Starting in 2013, power producers
will have to acquire all of their allowances through auctions.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
The number of allowances will be reduced each year. Industries
not subject to the ETS will also have to reduce their
emissions in accordance with national targets; a portion of
the fuel they use must come from renewable sources. The
EU will provide financial support for the development of carbon-capture-and-storage
technology. The green package will
have a profound impact on the future generation mix, network
infrastructure, and market rules.
We try to manage these risks by engaging in an intensive and
constructive dialog with government agencies and policymakers.
IT Risks
The operational and strategic management of the E.ON Group
relies heavily on complex information technology. Our IT systems
are maintained and optimized by qualified E.ON Group
experts, outside experts, and a wide range of technological
security measures. In addition, the E.ON Group has in place
a range of technological and organizational measures to
counter the risk of unauthorized access to data, the misuse
of data, and data loss.
Management’s Evaluation of the Risk Situation
During the year under review, the risk situation of the E.ON
Group’s operating business changed relative to the prior year
due to the current economic environment. In particular, sustained
low price levels in commodity markets and a lasting
and significant reduction in demand, particularly from industrial
customers, could, over the medium term, have a substantial
impact on the E.ON Group’s earnings situation. From
today’s perspective, however, we do not perceive any risks in
the future that would threaten the existence of the E.ON
Group or individual market units.
Disclosures on the Internal Control System for the
Accounting Process
Disclosures pursuant to Section 289, Paragraph 5 of the
German Commercial Code, which are part of the Combined
Group Management Report, are on pages 164 to 166.
47

48 Forecast
Macroeconomic Situation
The German Council of Economic Experts (“GCEE”) expects a
slight recovery for the global economy in 2010, although with
no signs of dynamic growth on the medium-term horizon.
The financial sector’s problems remain unsolved, hindering a
stable and sustained upward trend. The GCEE expects support
to come from government spending programs and robust
growth in emerging economies.
Economic recovery in the United States is expected to be hesitant
in 2010. The GCEE anticipates a moderate recovery for
the EU27. Automatic stabilization mechanisms will continue to
offer support, whereas the labor-market situation is expected
to worsen. Real-estate markets will also hamper economic
growth. Gross domestic product in the EU27 is expected to be
flat or slightly positive in real terms. The financial crisis will
continue to be particularly hard for Eastern European countries.
Russia’s economy is expected to recover, albeit slowly, thanks
to expansionary fiscal policies and rising fuel prices.
Due to the economic recovery and energy prices, inflation in
the United States and the EU will no longer be trending lower
but is instead expected to increase slightly.
Energy Industry
The future development of Germany’s energy industry will
be determined in part by the new federal government’s commitment
to move forward with the previous government’s
Integrated Climate Protection and Energy Package. It remains
the aim of the federal government to substantially alter
Germany’s energy mix, which would have considerable consequences
for our business. The policy’s targets for 2020 are
for Germany to:
• derive at least 30 percent of its electricity from renewable
sources
• derive 25 percent from cogeneration
• achieve an additional reduction in electricity consumption
by up to 11 percent.
To bolster competition law, the German federal government
intends to amend the Law against Barriers to Competition
(“GWB”). Plans call for it to contain a provision granting regulators
the authority, as a final option, to break up companies
that have a dominant market position.
The so-called green package adopted by the European Union
in December 2008 will also affect our industry’s future development.
Its targets for 2020 are for Europe to:
• reduce its greenhouse-gas emissions by 20 percent
• enhance its energy efficiency by 20 percent
• expand renewables so that they meet 20 percent of total
energy consumption.
Substantial uncertainty currently surrounds forecasts of carbon
allowance prices due to the decision to auction all allowances
and the numerous exceptions to this rule. The long-term
development of allowance prices will be determined primarily
by the way emissions trading is handled on a global scale.
Industry observers are forecasting a stabilization of energy
prices, which recently declined in the wake of the financial and
economic crisis. The International Energy Agency made a
significant upward correction to its long-term oil price projection
compared with last year. The reason for the correction
is that oil price increases of the last three years have not had
the same negative impact on the global economy that they
had in the 1980s. Natural gas and oil products are competing
fuels in many applications, so their prices will likely continue
to move in tandem in the future. As for coal, increased production
in conjunction with increased demand is expected to
result in stable price development over the long term, leading
to a wider spread between coal and oil prices.
Supported by a variety of European subsidy programs, renewables
play an increasingly important role and deliver a continually
increasing share of the energy supply. Binding EU and
member-state targets for expanding renewables place
demands on system integration that are becoming a growing
challenge for the energy industry.

Efficiency-Enhancement Program
Our ongoing Group-wide PerformtoWin program aims to
achieve lasting earnings improvements in all our market units
and at all stages of the value chain, mainly through internal
efficiency enhancements. We intend to deliver a total of €1.5 billion
in earnings improvements by 2011.
We already made progress in 2009. For example, we designed
a detailed package of measures encompassing PerformtoWin
projects along the entire value chain. The implementation of
PerformtoWin is now in full swing.
But these projects are by no means the end of our efforts.
Continual performance improvement is integral to our corporate
culture. We strive for all areas of our business to perform
at a level well above the industry average.
Employees
The number of employees in the E.ON Group (excluding board
members, managing directors, and apprentices) is expected
to decline by year-end 2010. This is mainly due to the sale of
our ultrahigh-voltage transmission system and of generation
capacity in Germany in line with our commitment to the European
Commission and to integration and efficiency-enhancement
measures in Central Europe East.
Earnings
As in the prior year, the forecast for the E.ON Group’s earnings
development is subject to significant uncertainty due to the
global financial and economic crisis. From today’s perspective,
it is difficult to predict the pace of economic recovery; in particular,
the market environment of our gas business is adversely
affected by overcapacity. Under our PerformtoWin program,
we have already initiated a variety of measures to reduce our
costs and improve our efficiency and productivity. Despite
the portfolio changes completed in 2009, we therefore expect
our 2010 adjusted EBIT to be 0 to 3 percent above the prioryear
figure.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
We anticipate that 2010 adjusted net income will be in line
with 2009. We expect to record slightly higher interest and
tax expenditures.
We intend to stand by our dividend payout ratio of 50 to
60 percent of adjusted net income.
Our forecast by market unit:
Central Europe’s 2010 adjusted EBIT is expected to be in line
with the 2009 figure. Its underlying business will benefit from
positive effects that include the commissioning of new generating
units and a reduced impact from the recession. Earnings
will be adversely affected by the disposal of gener ating
capacity and the ultrahigh-voltage transmission system.
We anticipate that Pan-European Gas’s 2010 adjusted EBIT
will be below the 2009 figure. The absence of earnings streams
from Thüga is the main negative factor. Another is the new
mechanism for regulating costs in the gas transport business
in Germany. These factors will be partially offset by higher
upstream earning due to the inclusion of Yuzhno-Russkoye
gas field for the entire year.
We expect U.K.’s 2010 adjusted EBIT to be higher than in 2009,
due primarily to benefits from efficiency improvements. The
key challenges are an increasingly competitive marketplace
and the residual impact of the recession.
We expect Nordic’s 2010 adjusted EBIT to surpass the 2009
figure. Nuclear outages for upgrades and modernization measures
were the main negative factor in 2009, whereas 2010
earnings will benefit primarily from higher transfer prices.
49

50 Forecast
We expect U.S. Midwest’s 2010 adjusted EBIT to be in line with
2009, with regulatory cost recovery mechanisms offsetting a
cost increase relating to additional capacity.
We expect Energy Trading’s 2010 adjusted EBIT to be above
the 2009 number, mainly due to optimization activities.
We anticipate that New Markets’ 2010 adjusted EBIT will be
below the prior-year figure. Italy’s earnings will be adversely
affected by the absence of a positive one-off effect recorded
in 2009 and by the disposal of significant generation activities
to Italian energy utility A2A. We expect Spain’s results to
decline due to narrower margins. Climate & Renewables will
benefit from a significant increase in its generating capacity.
Russia will benefit from the positive impact of ongoing
market liberalization and from the addition of new capacity
at Shaturskaya power station.
Economic Investments
Our 2010 investment plan calls for economic investments
of about €10 billion.
Our economic investments will return nearly to the level
prior to our growth program of the past three years, which
consisted primarily of external growth. Going forward, we
intend to focus on organic growth aimed at further expanding
our strong market positions in power and gas.
Accordingly, investments in property, plant, and equipment
will account for about 90 percent of our investments. About
€1.3 billion will go towards expanding our renewable-source
generating capacity.
Financial Situation
We expect our funding needs in 2010 to be minimal and to
relate primarily to refinancing. We expect to be able to fund
the investment expenditures planned for 2010 and the
dividend payout largely by means of cash provided by operating
activities and proceeds from disposals. It may be
necessary to make short-term use of commercial paper to
handle funding peaks during the course of the year. For
any debt issuance, our aim is to obtain favorable financing
conditions while achieving a broad mix of different markets,
investors, currencies, and maturities.
Opportunities
Based on Group-wide guidelines, the lead companies of all
our market units as well as certain departments at E.ON AG
report, on a yearly basis at the end of the fourth quarter, their
opportunities that are sufficiently concrete and substantial.
An opportunity is substantial within the meaning of E.ON
guidelines if it could have a significantly positive effect on a
market unit’s asset, financial, or earnings situation.
Positive developments in foreign-currency rates and market
prices for commodities (electricity, natural gas, coal, oil, and
carbon) can create opportunities for our business.

The Energy Trading market unit, which began operations at
the start of 2008, will enable us to seize opportunities created
by the increasing integration of European power and gas
markets and by commodity markets, which are already global
in scope. In view of market developments in the United Kingdom
and Continental Europe, trading at European gas hubs can
create additional sales and procurement opportunities.
In addition, the ongoing optimization of natural gas transport
and storage rights and of the availability and utilization
of our power and gas facilities could yield additional opportunities.
Additional opportunities could arise in the future if
policymakers decide to extend the operating lives of our
nuclear power stations in Germany.
Periods of exceptionally cold weather—very low average
temperatures or extreme daily lows—in the fall and winter
months can create opportunities for us to meet higher
demand for electricity and natural gas.
The E.ON procurement network enables us to achieve considerable
synergies by aggregating volume for the procurement
of investment goods, materials, and services. The Group-wide
transfer of best practices enables us to achieve further cost
reductions, primarily through the comparison of material and
performance specifications and through uniform procurement
processes. The centralization of procurement responsibility
for new-build investments in the New Build unit and
the Climate & Renewables market unit played a decisive role
in ensuring that the cost increases in the procurement market
for large components only had a limited effect on the costs
of the E.ON Group’s new-build projects.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Our investment policy is aimed at strengthening and enlarging
our leading position in our target markets and enabling us
to systematically seize opportunities, including opportunities
in future markets.
General Statement on E.ON’s Future Development
We had another successful financial year in 2009 despite at
times very difficult circumstances. We can therefore say that
E.ON’s business has a solid foundation. We are well positioned
for the challenges ahead. In 2010, our Group-wide PerformtoWin
program will now focus on pressing forward with the
planned initiatives and on managing and steering our company
in its new organizational structures. E.ON will maintain
its very solid position in energy supply in 2010.
From today’s perspective, we are unable to issue a reliable
forecast for 2011 due to uncertainty surrounding economic,
foreign-currency, regulatory, technological, and competitionrelated
developments. The effects of the financial crisis and
their influence on the global economy remain a significant
source of uncertainty.
This Combined Group Management Report contains certain forward-looking statements based on E.ON management’s current assumptions and forecasts and other currently
available information. Various known and unknown risks, uncertainties, and other factors could lead to material differences between E.ON’s actual future results, financial situation,
development or performance and the estimates given here. E.ON assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or
developments.
51

52
Consolidated Financial Statements
Auditor’s Report
We have audited the consolidated financial statements prepared
by the E.ON AG, Düsseldorf, comprising the balance
sheet, the income statement, statement of recognised income
and expense, cash flow statement, statement of changes in
equity and the notes to the consolidated financial statements,
together with the group management report, which is combined
with the management report of the Company for the
business year from January 1 to December 31, 2009. The preparation
of the consolidated financial statements and the
combined management report in accordance with the IFRSs,
as adopted by the EU, and the additional requirements of
German commercial law pursuant to § (Article) 315a Abs. (paragraph)
1 HGB (“Handelsgesetzbuch”: German Commercial
Code) are the responsibility of the parent Company’s Board
of Managing Directors. Our responsibility is to express an
opinion on the consolidated financial statements and the combined
management report based on our audit.
We conducted our audit of the consolidated financial statements
in accordance with § 317 HGB and German generally
accepted standards for the audit of financial statements promulgated
by the Institut der Wirtschaftsprüfer (Institute of
Public Auditors in Germany) (IDW) and additionally observed
the International Standards on Auditing (ISA). Those standards
require that we plan and perform the audit such that
misstatements materially affecting the presentation of the
net assets, financial position and results of operations in the
consolidated financial statements in accordance with the
applicable financial reporting framework and in the combined
management report are detected with reasonable assurance.
Knowledge of the business activities and the economic and
legal environment of the Group and expectations as to possible
misstatements are taken into account in the determination
of audit procedures. The effectiveness of the accountingrelated
internal control system and the evidence supporting
the disclosures in the consolidated financial statements and
the combined management report are examined primarily on
a test basis within the framework of the audit. The audit
includes assessing the annual financial statements of those
entities included in consolidation, the determination of the
entities to be included in consolidation, the accounting and consolidation
principles used and significant estimates made by
the Company’s Board of Managing Directors, as well as evaluating
the overall presentation of the consolidated financial
statements and the combined management report. We believe
that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion based on the findings of our audit the consolidated
financial statements comply with the IFRSs as adopted
by the EU and the additional requirements of German commercial
law pursuant to § 315a Abs. 1 HGB and give a true and
fair view of the net assets, financial position and results of
operations of the Group in accordance with these provisions.
The combined management report is consistent with the
consolidated financial statements and as a whole provides a
suitable view of the Group’s position and suitably presents
the opportunities and risks of future development.
Düsseldorf, February 26, 2010
PricewaterhouseCoopers Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Dr. Norbert Vogelpoth Dr. Norbert Schwieters
Wirtschaftsprüfer Wirtschaftsprüfer
(German Public Auditor) (German Public Auditor)

E.ON AG and Subsidiaries Consolidated Statements of Income
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
€ in millions Notes 2009 2008
Sales including electricity and energy taxes 83,718 88,885
Electricity and energy taxes -1,901 -2,132
Sales (5) 81,817 86,753
Changes in inventories (finished goods and work in progress) 43 27
Own work capitalized (6) 532 526
Other operating income (7) 24,961 15,454
Cost of materials (8) -62,087 -66,419
Personnel costs (11) -5,357 -5,130
Depreciation, amortization and impairment charges (14) -3,981 -6,852
Other operating expenses (7) -22,603 -20,337
Income/Loss (-) from companies accounted for under the equity method 941 912
Income/Loss (-) from continuing operations before financial results and income taxes 14,266 4,934
Financial results (9) -2,473 -2,351
Income from equity investments -224 -458
Income from other securities, interest and similar income 601 1,159
Interest and similar expenses -2,850 -3,052
Income taxes (10) -2,976 -834
Income/Loss (-) from continuing operations 8,817 1,749
Income/Loss (-) from discontinued operations, net (4) -172 -128
Net income 8,645 1,621
Attributable to shareholders of E.ON AG 8,396 1,283
Attributable to minority interests 249 338
in €
Earnings per share (attributable to shareholders of E.ON AG)—basic and diluted (13)
from continuing operations 4.50 0.76
from discontinued operations -0.09 -0.07
from net income 4.41 0.69
E.ON AG and Subsidiaries Consolidated Statements of Recognized Income and Expenses
€ in millions 2009 2008
Net income 8,645 1,621
Cash flow hedges 207 181
Unrealized changes 45 474
Reclassification adjustments recognized in income 162 -293
Available-for-sale securities 772 -10,186
Unrealized changes 2,617 -9,769
Reclassification adjustments recognized in income -1,845 -417
Currency translation adjustments 129 -1,922
Unrealized changes 473 -1,936
Reclassification adjustments recognized in income -344 14
Changes in actuarial gains/losses of defined benefit pension plans and similar obligations -1,500 3
Companies accounted for under the equity method 23 245
Unrealized changes 23 245
Reclassification adjustments recognized in income – –
Income taxes 763 1,042
Total income and expenses recognized directly in equity 394 -10,637
Total recognized income and expenses (total comprehensive income) 9,039 -9,016
Attributable to shareholders of E.ON AG 8,783 -9,110
Attributable to minority interests 256 94
53

54
E.ON AG and Subsidiaries Consolidated Balance Sheets—Assets
€ in millions Notes
December 31 January 1
2009 2008 2008
Goodwill (14a) 16,901 17,311 16,761
Intangible assets (14a) 8,242 6,696 4,284
Property, plant and equipment (14b) 60,787 56,480 48,552
Companies accounted for under the equity method (15) 7,342 8,931 8,411
Other financial assets (15) 9,131 8,823 21,478
Equity investments 5,461 3,806 14,583
Non-current securities 3,670 5,017 6,895
Financial receivables and other financial assets (17) 2,652 2,451 2,449
Operating receivables and other operating assets (17) 3,388 3,789 1,758
Income tax assets (10) 1,549 1,988 2,034
Deferred tax assets (10) 3,076 2,248 1,155
Non-current assets 113,068 108,717 106,882
Inventories (16) 4,518 4,774 3,811
Financial receivables and other financial assets (17) 1,729 2,101 1,515
Trade receivables and other operating assets (17) 23,007 28,848 16,895
Income tax assets (10) 1,925 1,515 539
Liquid funds (18) 6,116 6,348 7,075
Securities and fixed-term deposits 1,722 2,125 3,888
Restricted cash and cash equivalents 184 552 300
Cash and cash equivalents 4,210 3,671 2,887
Assets held for sale (4) 2,273 4,521 577
Current assets 39,568 48,107 30,412
Total assets 152,636 156,824 137,294

E.ON AG and Subsidiaries Consolidated Balance Sheets—Equity and Liabilities
€ in millions Notes
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
December 31 January 1
2009 2008 2008
Capital stock (19) 2,001 2,001 1,734
Additional paid-in capital (20) 13,747 13,741 11,825
Retained earnings (21) 26,578 22,181 26,828
Accumulated other comprehensive income (22) 1,552 110 10,656
Treasury shares (19) -3,530 -3,549 -616
Reclassification related to put options on treasury shares (19) – – -1,053
Equity attributable to shareholders of E.ON AG 40,348 34,484 49,374
Minority interests (before reclassification) 4,157 4,538 6,281
Reclassification related to put options (26) -550 -578 -525
Minority interests (23) 3,607 3,960 5,756
Equity 43,955 38,444 55,130
Financial liabilities (26) 30,657 25,036 15,915
Operating liabilities (26) 7,850 9,753 6,682
Income taxes (10) 3,124 2,602 2,537
Provisions for pensions and similar obligations (24) 2,884 3,559 2,890
Miscellaneous provisions (25) 18,808 19,198 18,073
Deferred tax liabilities (10) 7,505 6,277 7,555
Non-current liabilities 70,828 66,425 53,652
Financial liabilities (26) 7,120 16,022 5,549
Trade payables and other operating liabilities (26) 23,099 28,370 17,004
Income taxes (10) 1,643 2,153 1,354
Miscellaneous provisions (25) 4,715 4,260 3,992
Liabilities associated with assets held for sale (4) 1,276 1,150 613
Current liabilities 37,853 51,955 28,512
Total equity and liabilities 152,636 156,824 137,294
55

56
E.ON AG and Subsidiaries Consolidated Statements of Cash Flows
€ in millions 2009 2008
Net income 8,645 1,621
Income from discontinued operations, net 172 128
Depreciation, amortization and impairment of intangible assets and of property, plant and equipment 3,981 6,852
Changes in provisions 162 635
Changes in deferred taxes 918 -1,085
Other non-cash income and expenses 419 279
Gain/Loss on disposal of -5,095 -1,407
Intangible assets and property, plant and equipment -62 -362
Equity investments -4,829 -877
Securities (> 3 months) -204 -168
Changes in operating assets and liabilities and in income taxes -148 -285
Inventories 739 -1,454
Trade receivables 1,983 -4,616
Other operating receivables and income tax assets 1,915 -10,172
Trade payables -892 515
Other operating liabilities and income taxes -3,893 15,442
Cash provided by operating activities of continuing operations (operating cash flow) 9,054 6,738
Proceeds from disposal of 4,925 432
Intangible assets and property, plant and equipment 311 190
Equity investments 1 4,614 242
Purchase of investments in -9,200 -18,406
Intangible assets and property, plant and equipment -8,376 -8,996
Equity investments -824 -9,410
Proceeds from disposal of securities (> 3 months) and of financial receivables and fixed-term deposits 6,610 10,235
Purchase of securities (> 3 months) and of financial receivables and fixed-term deposits -6,083 -9,099
Changes in restricted cash and cash equivalents 349 -240
Cash used for investing activities of continuing operations -3,399 -17,078
Payments received/made from changes in capital 2 -1 62
Payments for treasury shares, net 2 25 -2,951
Premiums received for put options on treasury shares – 25
Cash dividends paid to shareholders of E.ON AG -2,857 -2,560
Cash dividends paid to minority shareholders -299 -377
Proceeds from financial liabilities 10,399 22,976
Repayments of financial liabilities -12,437 -5,784
Cash provided by (used for) financing activities of continuing operations -5,170 11,391
Net increase/decrease in cash and cash equivalents from continuing operations 485 1,051
Cash provided by operating activities of discontinued operations 26 15
Cash used for investing activities of discontinued operations -26 -15
Cash provided by financing activities of discontinued operations – –
Net increase in cash and cash equivalents from discontinued operations 0 0
Effect of foreign exchange rates on cash and cash equivalents 54 -267
Cash and cash equivalents at the beginning of the year 3,671 2,887
Cash and cash equivalents of continuing operations at the end of the year 4,210 3,671
1 For 2009, this figure contains amounts paid out in connection with the disposal of equity investments totaling €488 million.
2 No material netting has taken place in either of the years presented here.

Supplementary Information on Cash Flows from Operating Activities of
Continuing Operations
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
€ in millions 2009 2008
Income taxes paid (less refunds) -1,737 -1,490
Interest paid -1,800 -1,543
Interest received 602 877
Dividends received 1,017 1,138
Additional information on the Statements of Cash Flows is provided in Note 29.
57

58 Notes
Statement of Changes in Equity
€ in millions Capital stock
Additional
paid-in capital
Retained
earnings
Accumulated other comprehensive income
Currency
translation
adjustments
Available-forsale
securities
Cash flow
hedges
Balance as of January 1, 2008 1,734 11,825 26,828 -318 11,081 -107
Changes in scope of consolidation
Treasury shares repurchased/sold
Capital increase 267 1,916
Capital decrease
Dividends paid -2,560
Other changes
Share additions -3,469 -310 163 -35
Net additions/disposals from
the reclassification related to
put options 128
Total comprehensive income 1,254 -1,919 -8,568 123
Net income 1,283
Changes in actuarial gains/
losses of defined benefit
pension plans and similar
obligations -29
Other comprehensive income -1,919 -8,568 123
Balance as of December 31, 2008 2,001 13,741 22,181 -2,547 2,676 -19
Balance as of January 1, 2009 2,001 13,741 22,181 -2,547 2,676 -19
Changes in scope of consolidation
Treasury shares repurchased/sold
Capital increase 6
Capital decrease
Dividends paid -2,857
Other changes
Share additions -87
Net additions/disposals from
the reclassification related to
put options
Total comprehensive income 7,341 542 835 65
Net income 8,396
Changes in actuarial gains/
losses of defined benefit
pension plans and similar
obligations -1,055
Other comprehensive income 542 835 65
Balance as of December 31, 2009 2,001 13,747 26,578 -2,005 3,511 46

Treasury shares
Put options on
treasury shares
Equity
attributable
to shareholders
of E.ON AG
Minority
interests (before
reclassification)
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Reclassification
related to
put options Minority interests Total
-616 -1,053 49,374 6,281 -525 5,756 55,130
267 267 267
-2,933 -2,933 -2,933
2,183 153 153 2,336
-23 -23 -23
-2,560 -418 -418 -2,978
-194 -194 -194
-3,651 -1,622 -1,622 -5,273
1,053 1,181 -53 -53 1,128
-9,110 94 94 -9,016
1,283 338 338 1,621
-29 -47 -47 -76
-10,364 -197 -197 -10,561
-3,549 0 34,484 4,538 -578 3,960 38,444
-3,549 0 34,484 4,538 -578 3,960 38,444
-52 -52 -52
19 19 19
6 23 23 29
-25 -25 -25
-2,857 -270 -270 -3,127
-1 -1 -1
-87 -312 -312 -399
28 28 28
8,783 256 256 9,039
8,396 249 249 8,645
-1,055 -11 -11 -1,066
1,442 18 18 1,460
-3,530 0 40,348 4,157 -550 3,607 43,955
59

60 Notes
(1) Basis of Presentation
Based in Germany, the E.ON Group (“E.ON” or the “Group”) is
an international group of companies with integrated electricity
and gas operations. The E.ON Group’s reportable segments
are presented in line with the Group’s internal organizational
and reporting structure, as defined by International Financial
Reporting Standard (“IFRS”) 8, “Operating Segments” (“IFRS 8”):
• The Central Europe market unit, led by E.ON Energie AG
(“E.ON Energie”), Munich, Germany, operates E.ON’s
electricity business and the downstream gas business in
Central Europe.
• Pan-European Gas is responsible for the upstream and
midstream gas business. This market unit additionally
holds interests predominantly in energy businesses in
Europe outside of Germany. It is led by E.ON Ruhrgas AG
(“E.ON Ruhrgas”), Essen, Germany.
• The U.K. market unit encompasses the energy business
in the United Kingdom. This market unit is led by
E.ON UK plc (“E.ON UK”), Coventry, U.K.
• The Nordic market unit, which is led by the integrated
energy company E.ON Sverige AB (“E.ON Sverige”), Malmö,
Sweden, is concentrated on the energy business in
Northern Europe.
(2) Summary of Significant Accounting Policies
General Principles
The Consolidated Financial Statements are generally prepared
based on historical cost, with the exception of available-forsale
financial assets that are recognized at fair value and of
financial assets and liabilities (including derivative financial
instruments) that must be recognized in income at fair value.
Scope of Consolidation
The Consolidated Financial Statements incorporate the financial
statements of E.ON AG and entities controlled by E.ON
(“subsidiaries”). Control is achieved when the parent company
has the power to govern the financial and oper ating policies
• The U.S. Midwest market unit, led by E.ON U.S. LLC
(“E.ON U.S.”), Louisville, Kentucky, U.S., is primarily active in
the regulated energy market in the U.S. state of Kentucky.
• The Energy Trading market unit, led by E.ON Energy
Trading SE (“E.ON Energy Trading”), Düsseldorf, Germany,
holds the E.ON Group’s European trading activities for
electricity, gas, coal, oil and CO 2 allowances.
• All of the remaining operating segments have been combined
in accordance with IFRS 8, and are reported as
the “New Markets” segment. New Markets contains the
activities of the new Climate & Renewables, Italy, and
Russia market units, as well as the Spain market unit.
Furthermore, Corporate Center/Consolidation contains
E.ON AG itself (“E.ON” or the “Company”), the interests held
directly by E.ON AG, as well as the consolidation effects
that take place at Group level. Note 33 provides additional
information about the segments.
These Consolidated Financial Statements have been prepared
in accordance with Section 315a (1) of the German Commercial
Code (“HGB”) and with those IFRS and International Financial
Reporting Interpretations Committee (“IFRIC”) interpretations
that were adopted by the European Commission for use in
the EU as of the end of the fiscal year, and whose application
was mandatory as of December 31, 2009.
of an entity so as to obtain economic benefits from its activities.
In addition, special purpose entities are con solidated
when the substance of the relationship indicates that the
entity is controlled by E.ON.
The results of the subsidiaries acquired or disposed of during
the year are included in the Consolidated Statement of
Income from the date of acquisition or until the date of their
disposal, respectively.
Where necessary, adjustments are made to the subsidiaries’
financial statements to bring their accounting policies into
line with those of the Group. Intercompany receivables, liabilities
and results between Group companies are eliminated
in the consolidation process.

Associated Companies
An associate is an entity over which E.ON has significant
influence but which is neither a subsidiary nor an interest in
a joint venture. Significant influence is achieved when E.ON
has the power to participate in the financial and operating
policy decisions of the investee but does not control or jointly
control these decisions. Significant influence is generally
presumed if E.ON directly or indirectly holds at least 20 percent,
but less than 50 percent, of an entity’s voting rights.
Interests in associated companies are accounted for under
the equity method. In addition, majority-owned companies in
which E.ON does not exercise control due to restrictions
concerning the control of assets or management are also
generally accounted for under the equity method.
Interests in associated companies accounted for under the
equity method are reported on the balance sheet at cost,
adjusted for changes in the Group’s share of the net assets
after the date of acquisition, as well as any impairment
charges. Losses that might potentially exceed the Group’s interest
in an associated company when attributable long-term
loans are taken into consideration are not recognized. Any
goodwill resulting from the acquisition of an associated company
is included in the carrying amount of the investment.
Unrealized gains and losses arising from transactions with
associated companies accounted for under the equity method
are eliminated within the consolidation process on a pro-rata
basis if and insofar as these are material.
Companies accounted for under the equity method are tested
for impairment by comparing the carrying amount with its
recoverable amount. If the carrying amount exceeds the recoverable
amount, the carrying amount is adjusted in the amount
of this difference. If the reasons for previously recognized
impairment losses no longer exist, such impairment losses are
reversed accordingly.
The financial statements of equity interests accounted for
under the equity method are generally prepared using
accounting that is uniform within the Group.
Joint Ventures
Joint ventures are also accounted for under the equity
method. Unrealized gains and losses arising from transactions
with joint-venture companies are eliminated within the consolidation
process on a pro-rata basis if and insofar as these
are material.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Business Combinations
Business combinations are accounted for by applying the
purchase method, whereby the purchase price is offset against
the proportional share in the acquired company’s net assets.
In doing so, the values at the acquisition date that corresponds
to the date at which control of the acquired company was
attained are used as a basis. The acquiree’s identifiable assets,
liabilities and contingent liabilities are generally recognized at
their fair values irrespective of the extent attributable to
minority interests. The fair values of individual assets are
determined using published exchange or market prices at the
time of acquisition in the case of marketable securities, for
example, and in the case of land, buildings and major technical
equipment, generally using independent expert reports
that have been prepared by third parties. If exchange or market
prices are unavailable for consideration, fair values are
determined using the most reliable information available that
is based on market prices for comparable assets or on suitable
valuation techniques. In such cases, E.ON determines fair
value using the discounted cash flow method by discounting
estimated future cash flows by a weighted average cost of
capital. Estimated cash flows are consistent with the internal
mid-term planning data for the next three years, followed
by two additional years of cash flow projections, which are
extrapolated until the end of an asset’s useful life using a
growth rate based on industry and internal projections. The
discount rate reflects the specific risks inherent in the
acquired activities.
Transactions with minority shareholders are treated in the
same way as transactions with equity holders. Should the
acquisition of additional shares in a subsidiary result in a difference
between the cost of purchasing the shares and the
carrying amount of the minority interest acquired, that difference
must be fully recognized in equity.
Gains and losses from disposals of shares to minority shareholders
are also recognized in equity, provided that such
disposals do not result in a loss of control.
61

62 Notes
Intangible assets must be recognized separately from goodwill
if they are clearly separable or if their recognition arises
from a contractual or other legal right. Provisions for restructuring
measures may not be recorded in a purchase price
allocation. If the purchase price paid exceeds the proportional
share in the net assets at the time of acquisition, the positive
difference is recognized as goodwill. A negative difference is
immediately recognized in income.
Foreign Currency Translation
The Company’s transactions denominated in foreign currency
are translated at the current exchange rate at the date of
the transaction. Monetary foreign currency items are adjusted
to the current exchange rate at each balance sheet date; any
gains and losses resulting from fluctuations in the relevant
currencies, and the effects upon realization, are expensed and
reported as other operating income and other operating
expenses, respectively. Gains and losses from the translation
of financial instruments used in hedges of net investments
in its foreign operations are recognized in equity. The ineffective
portion of the hedging instrument is immediately recognized
in income.
The functional currency as well as the reporting currency of
E.ON AG is the euro. The assets and liabilities of the Company’s
foreign subsidiaries with a functional currency other than
the euro are translated using the exchange rates applicable
on the balance sheet date, while items of the statements of
income are translated using annual average exchange rates.
Significant transactions of foreign subsidiaries occurring
during the fiscal year are translated in the financial statements
using the exchange rate at the date of the transaction. Differences
arising from the translation of assets and liabilities,
as well as gains or losses in comparison with the translation
of prior years, are included as a separate component of equity
and accordingly have no effect on net income.
Foreign currency translation effects that are attributable to
the cost of monetary financial instruments classified as available
for sale are recognized in income. In the case of fairvalue
adjustments of monetary financial instruments and for
non-monetary financial instruments classified as available
for sale, the foreign currency translation effects are recognized
in equity with no effect on net income.
Foreign-exchange transactions out of the Russian Federation
may be restricted in certain cases.
The following table depicts the movements in exchange rates
for the periods indicated for major currencies of countries
outside the European Monetary Union:
Currencies
ISO
Code
€1, rate at
year-end
€1, annual
average rate
2009 2008 2009 2008
British pound GBP 0.89 0.95 0.89 0.80
Norwegian krone NOK 8.30 9.75 8.73 8.22
Russian ruble RUB 43.15 41.28 44.14 36.42
Swedish krona SEK 10.25 10.87 10.62 9.62
Hungarian forint HUF 270.42 266.70 280.33 251.51
U.S. dollar USD 1.44 1.39 1.39 1.47
Recognition of Income
a) Revenues
The Company generally recognizes revenue upon delivery of
products to customers or upon fulfillment of services. Delivery
is deemed complete when the risks and rewards associated
with ownership have been transferred to the buyer as contractually
agreed, compensation has been contractually established
and collection of the resulting receivable is probable.
Revenues from the sale of goods and services are measured
at the fair value of the consideration received or receivable.
They reflect the value of the volume supplied, including an
estimated value of the volume supplied to customers between
the date of their last meter reading and period-end.
Revenues are presented net of sales taxes, returns, rebates
and discounts, and after elimination of intercompany sales.
Revenues are generated primarily from the sale of electricity
and gas to industrial and commercial customers and to retail
customers. Also shown in this line item are revenues earned
from the distribution of electricity and gas, from deliveries
of steam, heat and water, as well as from proprietary trading.
b) Interest Income
Interest income is recognized pro rata using the effective
interest method.

c) Dividend Income
Dividend income is recognized when the right to receive the
distribution payment arises.
Electricity and Energy Taxes
The electricity tax is levied on electricity delivered to retail
customers and is calculated on the basis of a fixed tax rate per
kilowatt-hour (“kWh”). This rate varies between different
classes of customers. Electricity and energy taxes paid are
deducted from sales revenues on the face of the income
statement if those taxes are levied upon delivery of energy
to the retail customer.
Accounting for Sales of Shares of Subsidiaries or
Associated Companies
If a subsidiary or associated company sells shares to a third
party, leading to a reduction in E.ON’s ownership interest in
the relevant company (“dilution”), and consequently to a loss
of control or significant influence, gains and losses from
these dilutive transactions are included in the income statement
under other operating income or expenses.
Earnings per Share
Basic (undiluted) earnings per share is computed by dividing
the consolidated net income attributable to the shareholders
of the parent company by the weighted average number of
ordinary shares outstanding during the relevant period. At E.ON,
the computation of diluted earnings per share is identical to
that of basic earnings per share because E.ON AG has issued
no potentially dilutive ordinary shares.
Goodwill and Intangible Assets
Goodwill
According to IFRS 3, “Business Combinations” (“IFRS 3”), goodwill
is not amortized, but rather tested for impairment at the
cash-generating unit level on at least an annual basis. Impairment
tests must also be performed between these annual
tests if events or changes in circumstances indicate that the
carrying amount of the respective cash-generating unit might
not be recoverable.
Newly created goodwill is allocated to those cash-generating
units expected to benefit from the respective business combination.
The cash-generating units regularly used at E.ON for
goodwill impairment testing purposes are the operating units
one level below the segments or the segments themselves.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
In a goodwill impairment test, the recoverable amount of a
cash-generating unit is compared with its carrying amount,
including goodwill. The recoverable amount is the higher of
the cash-generating unit’s fair value less costs to sell and its
value in use. In a first step, E.ON determines the recoverable
amount of a cash-generating unit on the basis of the fair value
(less costs to sell) using generally accepted valuation procedures.
This is based on the medium-term planning data of the
respective cash-generating unit. Valuation is performed using
the discounted cash flow method, and accuracy is verified
through the use of appropriate multiples, to the extent available.
In addition, market transactions or valuations prepared
by third parties for comparable assets are used to the extent
available. If needed, a calculation of value in use is also performed.
Unlike fair value, the value in use is calculated from
the viewpoint of management. In accordance with IAS 36,
“Impairment of Assets” (“IAS 36”), it is further ensured that
restructuring expenses, as well as initial and subsequent
capital investments (where those have not yet commenced),
in particular, are not included in the valuation.
If the carrying amount exceeds the recoverable amount, the
goodwill allocated to that cash-generating unit is adjusted in
the amount of this difference.
If the impairment thus identified exceeds the goodwill allocated
to the affected cash-generating unit, the remaining
assets of the unit must be written down in the proportion of
their carrying amounts. Individual assets may be written down
only if their respective carrying amounts do not fall below
the highest of the following values as a result:
• Fair value less costs to sell
• Value in use, or
• Zero.
Any additional impairment loss that would otherwise have
been allocated to the asset concerned must instead be allocated
pro rata to the remaining assets of the unit.
E.ON has elected to perform the annual testing of goodwill
for impairment at the cash-generating unit level in the fourth
quarter of each fiscal year in local currency.
63

64 Notes
Impairment losses recognized for goodwill in a cash-generating
unit may not be reversed in subsequent reporting periods.
Intangible Assets
IAS 38, “Intangible Assets” (“IAS 38”), requires that intangible
assets be amortized over their useful lives unless their lives
are considered to be indefinite.
Acquired intangible assets subject to amortization are classified
as marketing-related, customer-related, contract-based,
and technology-based. Internally generated intangible assets
subject to amortization are related to software. Intangible
assets subject to amortization are measured at cost and amortized
using the straight-line method over their expected
useful lives, generally for a period between 5 and 25 years or
between 3 and 5 years for software, respectively. Furthermore,
contract-based intangible assets are amortized in accordance
with the provisions specified in the contracts. Useful lives
and amortization methods are subject to annual verification.
Intangible assets subject to amortization are tested for
impairment whenever events or changes in circumstances
indicate that such assets may be impaired.
Intangible assets not subject to amortization are measured at
cost and tested for impairment annually or more frequently
if events or changes in circumstances indicate that such assets
may be impaired. Moreover, such assets are reviewed annually
to determine whether an assessment of indefinite useful
life remains applicable.
In accordance with IAS 36, the carrying amount of an intangible
asset, whether subject to amortization or not, is tested for
impairment by comparing the carrying value with the asset’s
recoverable amount, which is the higher of its value in use
and its fair value less costs to sell. Should the carrying amount
exceed the corresponding recoverable amount, an impairment
charge equal to the difference between the carrying
amount and the recoverable amount is recognized.
If the reasons for previously recognized impairment losses
no longer exist, such impairment losses are reversed. A reversal
shall not cause the carrying amount of an intangible asset
subject to amortization to exceed the amount that would
have been determined, net of amortization, had no impairment
loss been recognized during the period.
If a recoverable amount cannot be determined for an individual
intangible asset, the recoverable amount for the
smallest identifiable group of assets (cash-generating unit)
that the intangible asset may be assigned to is determined.
See Note 14(a) for additional information about goodwill and
intangible assets.
Research and Development Costs
Under IFRS, research and development costs must be allocated
to a research phase and a development phase. While expenditure
on research is expensed as incurred, recognized development
costs must be capitalized as an intangible asset if
all of the general criteria for recognition specified in IAS 38,
as well as certain other specific prerequisites, have been fulfilled.
In the 2009 and 2008 fiscal years, these criteria were not
fulfilled, except in the case of internally generated software.
Emission Rights
Under IFRS, emission rights held under national and international
emission-rights systems for the settlement of obligations
are reported as intangible assets. Because emission rights
are not depleted as part of the production process, they are
reported as intangible assets not subject to amortization.
Emission rights are capitalized at cost when issued for the
respective reporting period as (partial) fulfillment of the
notice of allocation from the responsible national authorities,
or upon acquisition.
A provision is recognized for emissions produced. The provision
is measured at the carrying amount of the emission rights
held or, in the case of a shortfall, at the current fair value of the
emission rights needed. The expenses incurred for the recognition
of the provision are reported under cost of materials.
As part of operating activities, emission rights are also held
for proprietary trading purposes. Emission rights held for
proprietary trading are reported under other operating assets
and measured at the lower of cost or fair value.

Property, Plant and Equipment
Property, plant and equipment are initially measured at acquisition
or production cost, including decommissioning or restoration
cost that must be capitalized, and are depreciated
over the expected useful lives of the components, generally
using the straight-line method, unless a different method
of depreciation is deemed more suitable in certain exceptional
cases. The useful lives of the major components of property,
plant and equipment are presented below:
Useful Lives of Property, Plant and
Equipment
Buildings 10 to 50 years
Technical equipment, plant and machinery 10 to 65 years
Other equipment, fixtures,
furniture and office equipment 3 to 25 years
Property, plant and equipment are tested for impairment
whenever events or changes in circumstances indicate that an
asset may be impaired. In such a case, property, plant and
equipment are tested for impairment according to the principles
prescribed for intangible assets in IAS 36. If an impairment
loss is determined, the remaining useful life of the asset
might also be subject to adjustment, where applicable. If
the reasons for previously recognized impairment losses no
longer exist, such impairment losses are reversed and recognized
in income. Such reversal shall not cause the carrying
amount to exceed the amount that would have resulted had
no impairment taken place during the preceding periods.
Investment subsidies do not reduce the acquisition and
production costs of the respective assets; they are instead
reported on the balance sheet as deferred income.
Subsequent costs arising, for example, from additional or
replacement capital expenditure are only recognized as part
of the acquisition or production cost of the asset, or else—if
relevant—recognized as a separate asset if it is probable that
the Group will receive a future economic benefit and the cost
can be determined reliably.
Repair and maintenance costs that do not constitute significant
replacement capital expenditure are expensed as incurred.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Exploration for and Evaluation of Mineral Resources
The exploration and field development expenditures of the
Pan-European Gas market unit are accounted for using the
so-called “successful efforts method.” In accordance with
IFRS 6, “Exploration for and Evaluation of Mineral Resources”
(“IFRS 6”), expenditures for exploratory drilling for which the
outcome is not yet certain are initially capitalized as an
intangible asset.
Upon discovery of oil and/or gas reserves and field development
approval, the relevant expenditures are reclassified as
property, plant and equipment. Such property, plant and
equipment is then depreciated in accordance with production
volumes. For economically inviable drilling, the previously
capitalized expenditures are immediately expensed. Other capitalized
expenditures are also written off once it is determined
that no viable reserves could be found. Other expenses for
geological and geophysical work (seismology) and licensing
fees are immediately expensed.
Borrowing Costs
Borrowing costs that arise in connection with the acquisition,
construction or production of a qualifying asset from the
time of acquisition or from the beginning of construction or
production until entry into service are capitalized and subsequently
amortized alongside the related asset. In the case
of a specific financing arrangement, the respective specific
borrowing costs for that arrangement are used. For non- specific
financing arrangements, a financing rate uniform within the
Group of 4.5 percent was applied for 2009 (2008: 5.0 percent).
Other borrowing costs are expensed.
Government Grants
Government investment subsidies do not reduce the acquisition
and production costs of the respective assets; they are
instead reported on the balance sheet as deferred income. They
are recognized in income on a straight-line basis over the
associated asset’s expected useful life.
65

66 Notes
Government grants are recognized at fair value if it is highly
probable that the grant will be issued and if the Group satisfies
the necessary conditions for receipt of the grant.
Government grants for costs are posted as income over the
period in which the costs to be compensated through the
respective grants are incurred.
Leasing
Leasing transactions are classified according to the lease
agreements and to the underlying risks and rewards specified
therein in line with IAS 17, “Leases” (“IAS 17”). In addition, IFRIC 4,
“Determining Whether an Arrangement Contains a Lease”
(“IFRIC 4”), further defines the criteria as to whether an agreement
that conveys a right to use an asset meets the definition
of a lease. Certain purchase and supply contracts in the
electricity and gas business as well as certain rights of use
may be classified as leases if the criteria are met. E.ON is party
to some agreements in which it is the lessor and other agreements
in which it is the lessee.
Leasing transactions in which E.ON is the lessee are classified
either as finance leases or operating leases. If the Company
bears substantially all of the risks and rewards incident to
owner ship of the leased property, the lease is classified as a
finance lease. Accordingly, the Company recognizes on its
balance sheet the asset and the associated liability in equal
amounts.
Recognition takes place at the beginning of the lease term at
the lower of the fair value of the leased property or the present
value of the minimum lease payments.
The leased property is depreciated over its useful economic
life or, if it is shorter, the term of the lease. The liability is subsequently
measured using the effective interest method.
All other transactions in which E.ON is the lessee are classified
as operating leases. Payments made under operating leases
are generally expensed over the term of the lease.
Leasing transactions in which E.ON is the lessor and substantially
all the risks and rewards incident to ownership of the
leased property are transferred to the lessee are classified as
finance leases. In this type of lease, E.ON records the present
value of the minimum lease payments as a receivable. Payments
by the lessee are apportioned between a reduction of
the lease receivable and interest income. The income from
such arrangements is recognized over the term of the lease
using the effective interest method.
All other transactions in which E.ON is the lessor are treated
as operating leases. E.ON retains the leased property on its
balance sheet as an asset, and the lease payments are generally
recorded on a straight-line basis as income over the
term of the lease.
Financial Instruments
Non-Derivative Financial Instruments
Non-derivative financial instruments are recognized at fair
value on the settlement date when acquired. Unconsolidated
equity investments and securities are measured in accordance
with IAS 39, “Financial Instruments: Recognition and Measurement”
(“IAS 39”). E.ON categorizes financial assets as held
for trading, available for sale, or as loans and receivables. Management
determines the categorization of the financial
assets at initial recognition.
Securities categorized as available for sale are carried at fair
value on a continuing basis, with any resulting unrealized
gains and losses, net of related deferred taxes, reported as a
separate component within equity until realized. Realized
gains and losses are determined by analyzing each transaction
individually. If there is objective evidence of impairment,
any unrealized gains and losses previously recognized in
equity are instead recognized in financial results. When estimating
a possible impairment loss, E.ON takes into consideration
all available information, such as market conditions
and the length and extent of the impairment. If the value on
the balance sheet date of the equity instruments classified
as available for sale and of similar long-term investments is
more than 20 percent below their cost, or if the value has, on
average, been more than ten percent below its cost for a
period of more than twelve months, this constitutes objective
evidence of impairment. For debt instruments, objective evidence
of impairment is deemed present if ratings have deteriorated
from investment-grade to non-investment-grade.
Reversals of impairment losses relating to equity instruments
are recognized exclusively in equity, while reversals relating
to debt instruments are recognized entirely in income.

Loans and receivables (including trade receivables) are nonderivative
financial assets with fixed or determinable payments
that are not traded in an active market. Loans and receivables
are reported on the balance sheet under “Receivables
and other assets.” They are subsequently measured at amortized
cost. Valuation allowances are provided for identifiable
individual risks.
Non-derivative financial liabilities (including trade payables)
within the scope of IAS 39 are measured at amortized cost,
using the effective interest method. Initial measurement takes
place at fair value plus transaction costs. In subsequent periods,
the amortization and accretion of any premium or discount
is included in financial results.
Derivative Financial Instruments and Hedging
Transactions
Derivative financial instruments and separated embedded
derivatives are measured at fair value as of the trade date at
initial recognition and in subsequent periods. IAS 39 requires
that they be categorized as held for trading as long as they
are not a component of a hedge accounting relationship. Gains
and losses from changes in fair value are immediately recognized
in net income.
Instruments commonly used are foreign currency forwards
and swaps, as well as interest-rate swaps and cross-currency
swaps. In commodities, the instruments used include physically
and financially settled forwards and options related to electricity,
gas, coal, oil and emission rights. As part of conducting
operations in commodities, derivatives are also acquired for
proprietary trading purposes.
IAS 39 sets requirements for the designation and documentation
of hedging relationships, the hedging strategy, as well
as ongoing retrospective and prospective measurement of
effectiveness in order to qualify for hedge accounting. The Company
does not exclude any component of derivative gains
and losses from the measurement of hedge effectiveness.
Hedge accounting is considered to be appropriate if the
assessment of hedge effectiveness indicates that the change
in fair value of the designated hedging instrument is 80 to
125 percent effective at offsetting the change in fair value due
to the hedged risk of the hedged item or transaction.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
For qualifying fair value hedges, the change in the fair value
of the derivative and the change in the fair value of the
hedged item that is due to the hedged risk(s) are recognized
in income. If a derivative instrument qualifies as a cash flow
hedge under IAS 39, the effective portion of the hedging instrument’s
change in fair value is recognized in equity (as a
component of accumulated other comprehensive income) and
reclassified into income in the period or periods during
which the cash flows of the transaction being hedged affect
income. The hedging result is reclassified into income immediately
if it becomes probable that the hedged underlying
transaction will no longer occur. For hedging instruments used
to establish cash flow hedges, the change in fair value of
the ineffective portion is recognized immediately in the income
statement to the extent required. To hedge the foreign currency
risk arising from the Company’s net investment in foreign
operations, derivative as well as non-derivative financial
instruments are used. Gains or losses due to changes in fair
value and from foreign currency translation are recognized
separately within equity as currency translation adjustments.
Changes in fair value of derivative instruments that must be
recognized in income are presented as other operating income
or expenses. Gains and losses from interest-rate derivatives
are netted for each contract and included in interest income.
Gains and losses from derivative proprietary trading instruments
are shown net as either revenues or cost of materials.
Certain realized amounts are, if related to the sale of products
or services, also included in sales or cost of materials.
Unrealized gains and losses resulting from the initial measurement
of derivative financial instruments at the inception
of the contract are not recognized in income. They are instead
deferred and recognized in income systematically over the
term of the derivative. An exception to the accrual principle
applies if unrealized gains and losses from the initial measurement
are verified by quoted market prices, observable prices
of other current market transactions or other observable data
supporting the valuation technique. In this case the gains
and losses are recognized in income.
67

68 Notes
IFRS 7, “Financial Instruments: Disclosures” (“IFRS 7”) requires
comprehensive quantitative and qualitative disclosures
about the extent of risks arising from financial instruments.
Additional information on financial instruments is provided
in Notes 30 and 31.
Inventories
The Company measures inventories at the lower of acquisition
or production cost and net realizable value. The cost of raw
materials, finished products and goods purchased for resale is
determined based on the average cost method. In addition to
production materials and wages, production costs include
material and production overheads based on normal capacity.
The costs of general administration are not capitalized. Inventory
risks resulting from excess and obsolescence are provided
for using appropriate valuation allowances, whereby inventories
are written down to net realizable value.
Receivables and Other Assets
Receivables and other assets are initially measured at fair
value, which generally approximates nominal value. They are
subsequently measured at amortized cost, using the effective
interest method. Valuation allowances, included in the reported
net carrying amount, are provided for identifiable individual
risks. If the loss of a certain part of the receivables is probable,
valuation allowances are provided to cover the expected loss.
Liquid Funds
Liquid funds include current available-for-sale securities,
checks, cash on hand and bank balances. Bank balances and
available-for-sale securities with an original maturity of more
than three months are recognized under securities and fixedterm
deposits. Liquid funds with an original maturity of less
than three months are considered to be cash and cash equivalents,
unless they are restricted.
Restricted cash with a remaining maturity in excess of twelve
months is classified as financial receivables and other financial
assets.
Assets Held for Sale and Liabilities Associated with
Assets Held for Sale
Individual non-current assets or groups of assets held for
sale and any directly attributable liabilities (disposal groups)
are reported in these line items if they can be disposed of
in their current condition and if there is sufficient probability
of their disposal actually taking place. For a group of assets
and associated liabilities to be classified as a disposal group,
the assets and liabilities in it must be held for sale in a single
transaction or as part of a comprehensive plan.
Discontinued operations are components of an entity that
are either held for sale or have already been sold and can be
clearly distinguished from other corporate operations, both
operationally and for financial reporting purposes. Additionally,
the component classified as a discontinued operation must
represent a major business line or a specific geographic business
segment of the Group.
Non-current assets that are held for sale either individually
or collectively as part of a disposal group, or that belong to
a discontinued operation, are no longer depreciated. They are
instead accounted for at the lower of the carrying amount
and the fair value less any remaining costs to sell. If the fair
value is less than the carrying amount, an impairment loss
is recognized.
The income and losses resulting from the measurement of
components held for sale at fair value less any remaining costs
to sell, as well as the gains and losses arising from the disposal
of discontinued operations, are reported separately on
the face of the income statement under income/loss from
discontinued operations, net, as is the income from the ordinary
operating activities of these divisions. Prior-year income
statement figures are adjusted accordingly. The relevant
assets and liabilities are reported in a separate line on the
balance sheet. The cash flows of discontinued operations are
reported separately in the cash flow statement, with prioryear
figures adjusted accordingly. However, there is no reclassification
of prior-year balance sheet line items attributable
to discontinued operations.
Equity Instruments
IFRS defines equity as the residual interest in the Group’s
assets after deducting all liabilities. Therefore, equity is the
net amount of all recognized assets and liabilities.

E.ON has entered into purchase commitments to minority
shareholders. By means of these agreements, the minority
shareholders have the right to require E.ON to purchase their
shares on specified conditions. None of the contractual obligations
has led to the transfer of substantially all of the risk
and rewards to E.ON at the time of entering into the contract.
IAS 32, “Financial Instruments: Presentation” (“IAS 32”), prescribes
that a liability must be recognized at the present value
of the probable future exercise price. This amount is reclassified
from a separate component within minority interests and
reported separately as a liability. The reclassification occurs
irrespective of the probability of exercise. Expenses resulting
from the accretion of the liability are recognized in interest
expenses. If a purchase commitment expires unexercised, the
liability reverts to minority interests. Any difference between
liabilities and minority interests is recognized directly in equity.
Where shareholders of entities own statutory, non-excludable
rights of termination (for example, in German partnerships),
such termination rights require the reclassification of minority
interests from equity into liabilities under IAS 32. The liability
is recognized at the present value of the expected settlement
amount irrespective of the probability of termination. Changes
in the value of the liability are reported within other operating
income. Accretion of the liability and the minority shareholders’
share in net income are shown as interest expense.
If an E.ON Group company buys treasury shares of E.ON AG, the
value of the consideration paid, including directly attributable
additional costs (net after income taxes), is deducted from
E.ON AG’s equity until the shares are retired, distributed or
resold. If such treasury shares are subsequently distributed or
sold, the consideration received, net of any directly attributable
additional transaction costs and associated income taxes,
is added to E.ON AG’s equity.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Share-Based Payment
Share-based payment plans issued in the E.ON Group are
accounted for in accordance with IFRS 2, “Share-Based Payment”
(“IFRS 2”). Both the E.ON Share Performance Plan
introduced in fiscal 2006 and the remaining Stock Appreciation
Rights that were granted between 1999 and 2005 as part of
the virtual stock option program of E.ON AG are share-based
payment transactions with cash compensation, the value of
which is reported at fair value as of each balance sheet date.
Compensation expense is recorded pro rata over the vesting
period. E.ON determines fair value using the Monte Carlo
simulation technique.
Provisions for Pensions and Similar Obligations
The valuation of defined benefit obligations in accordance with
IAS 19, “Employee Benefits” (“IAS 19”), is based on actuarial
computations using the projected unit credit method, with
actuarial valuations performed at year-end. The valuation
encompasses both pension obligations and pension entitlements
that are known on the balance sheet date, as well
as economic trend assumptions made in order to reflect realistic
expectations.
Actuarial gains and losses that may arise from differences
between the estimated and actual number of beneficiaries and
from differences between the estimated and actual underlying
assumptions are recognized in full in the period in which
they occur. Such gains and losses are not reported within the
Consolidated Statements of Income but rather are recognized
within the Statements of Recognized Income and Expenses
as part of equity.
The employer service cost representing the additional benefits
that employees earned under the benefit plan during
the fiscal year is reported under personnel costs; interest cost
and expected return on plan assets are reported under financial
results.
Unrecognized past service cost is recognized immediately to
the extent that the benefits are already vested or else amortized
on a straight-line basis over the average period until the
benefits become vested.
69

70 Notes
The amount reported on the balance sheet represents the
present value of the defined benefit obligation adjusted for
unrecognized past service cost and reduced by the fair value
of plan assets. If a net asset position arises from this calculation,
the amount is limited to the as yet unrecognized past
service cost plus the present value of available refunds and
of the reduction in future contributions.
Payments for defined contribution pension plans are expensed
as incurred and reported under personnel costs. Contributions
to government pension plans are treated like payments for
defined contribution pension plans to the extent that the obligations
under these pension plans correspond to those under
defined contribution pension plans.
Provisions for Asset Retirement Obligations and
Other Provisions
In accordance with IAS 37, “Provisions, Contingent Liabilities
and Contingent Assets” (“IAS 37”), provisions are recognized
when E.ON has a legal or constructive present obligation
towards third parties as a result of a past event, it is probable
that E.ON will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The provision is recognized at the expected settlement
amount. Long-term obligations are reported as liabilities at the
present value of their expected settlement amounts if the
interest rate effect (the difference between present value and
repayment amount) resulting from discounting is material;
future cost increases that are foreseeable and likely to occur
on the balance sheet date must also be included in the measurement.
Long-term obligations are discounted at the market
interest rate applicable as of the respective balance sheet
date. The accretion amounts and the effects of changes in interest
rates are generally presented as part of financial results.
A reimbursement related to the provision that is virtually
certain to be collected is capitalized as a separate asset. No
offsetting within provisions is permitted. Advance payments
remitted are deducted from the provisions.
Obligations arising from the decommissioning or dismantling
of property, plant and equipment are recognized during
the period of their occurrence at their discounted settlement
amounts, provided that the obligation can be reliably estimated.
The carrying amounts of the respective property, plant
and equipment are increased by the same amounts. In subsequent
periods, capitalized asset retirement costs are
amortized over the expected remaining useful lives of the
assets, and the provision is accreted to its present value
on an annual basis.
Changes in estimates arise in particular from deviations from
original cost estimates, from changes to the maturity or the
scope of the relevant obligation, and also as a result of the
regular adjustment of the discount rate to current market interest
rates. The adjustment of provisions for the decommissioning
and restoration of property, plant and equipment for
changes to estimates is generally recognized by way of a
corresponding adjustment to these assets, with no effect on
income. If the property, plant and equipment to be decommissioned
have already been fully depreciated, changes to
estimates are recognized within the income statement.
The estimates for non-contractual nuclear decommissioning
provisions are based on external studies and are continuously
updated.
Under Swedish law, E.ON Sverige is required to pay fees to
the Swedish Nuclear Waste Fund. The Swedish Radiation
Safety Authority calculates the fees for the disposal of highlevel
radioactive waste and nuclear power plant decommissioning
based on the amount of electricity produced at the
particular nuclear power plant. The proposed fees are then
submitted to government offices for approval. Upon approval,
E.ON Sverige makes the corresponding payments. In accordance
with IFRIC 5, “Rights to Interests Arising from Decommissioning,
Restoration and Environmental Rehabilitation
Funds” (“IFRIC 5”), payments into the Swedish national fund for
nuclear waste management are offset by a right of reimbursement
of asset retirement obligations, which is recognized
as an asset under “Other assets.” In accordance with customary
procedure in Sweden, the provisions are discounted at the
real interest rate.
No provisions are established for contingent asset retirement
obligations where the type, scope, timing and associated
probabilities can not be determined reliably.

Contingent liabilities are possible obligations toward third
parties arising from past events that are not wholly within the
control of the entity, or else present obligations toward
third parties arising from past events in which an outflow of
resources embodying economic benefits is not probable
or where the amount of the obligation cannot be measured
with sufficient reliability. Contingent liabilities are generally
not recognized on the balance sheet.
Income Taxes
Under IAS 12, “Income Taxes” (“IAS 12”), deferred taxes are
recognized on temporary differences arising between the carrying
amounts of assets and liabilities on the balance sheet
and their tax bases (balance sheet liability method). Deferred
tax assets and liabilities are recognized for temporary differences
that will result in taxable or deductible amounts when
taxable income is calculated for future periods, unless those
differences are the result of the initial recognition of an
asset or liability in a transaction other than a business combination
that, at the time of the transaction, affects neither
accounting nor taxable profit/loss. IAS 12 further requires that
deferred tax assets be recognized for unused tax loss carryforwards
and unused tax credits. Deferred tax assets are recognized
to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences
and unused tax losses can be utilized. Each of the
corporate entities is assessed individually with regard to the
probability of a positive tax result in future years. Any existing
history of losses is incorporated in this assessment. For those
tax assets to which these assumptions do not apply, the value
of the deferred tax assets is reduced.
Deferred tax liabilities caused by temporary differences associated
with investments in affiliated and associated companies
are recognized unless the timing of the reversal of such
temporary differences can be controlled within the Group
and it is probable that, owing to this control, the differences
will in fact not be reversed in the foreseeable future.
Deferred tax assets and liabilities are measured using the
enacted or substantively enacted tax rates expected to be
applicable for taxable income in the years in which temporary
differences are expected to be recovered or settled.
The effect on deferred tax assets and liabilities of changes
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
in tax rates and tax law is generally recognized in income.
Equity is adjusted for deferred taxes that had previously been
recognized directly in equity.
Deferred taxes for domestic companies are calculated using
a total tax rate of 30 percent (2008: 30 percent). This tax rate
includes, in addition to the 15 percent (2008: 15 percent) corporate
income tax, the solidarity surcharge of 5.5 percent
on the corporate tax, and the average trade tax rate of 14 percent
(2008: 14 percent) applicable to the E.ON Group. Foreign
subsidiaries use applicable national tax rates.
Note 10 shows the major temporary differences so recorded.
Consolidated Statements of Cash Flows
In accordance with IAS 7, “Cash Flow Statements” (“IAS 7”),
the Consolidated Statements of Cash Flows are classified
by operating, investing and financing activities. Cash flows
from discontinued operations are reported separately in
the Consolidated Statement of Cash Flows. Interest received
and paid, income taxes paid and refunded, as well as dividends
received are classified as operating cash flows, whereas
dividends paid are classified as financing cash flows. The
purchase and sale prices respectively paid and received in
connection with the acquisition and disposal of affiliated
companies are reported under investing activities, net of the
cash and cash equivalents acquired or divested as part of
the transaction. This also applies to valuation changes due to
exchange rate fluctuations, whose impact on cash and cash
equivalents is separately disclosed.
Segment Information
In accordance with the so-called management approach
required by IFRS 8, the internal reporting organization used
by management for making decisions on operating matters
was used to identify the Company’s reportable segments, and
the internal performance measure, i.e., adjusted EBIT, was
used as the segment result (see Note 33).
71

72 Notes
Structure of the Consolidated Balance Sheets and
Statements of Income
In accordance with IAS 1, “Presentation of Financial Statements”
(“IAS 1”), the Consolidated Balance Sheets have been prepared
using a classified balance sheet structure. Assets that
will be realized within twelve months of the reporting date,
as well as liabilities that are due to be settled within one year
of the reporting date are generally classified as current.
The Consolidated Statements of Income are classified using
the nature of expense method, which is also applied for
internal purposes.
Capital Structure Management
E.ON uses the debt factor as the measure for the management
of its capital structure. The debt factor is defined as the ratio
of economic net debt to adjusted EBITDA. Economic net debt
includes provisions for pensions and waste disposal in addition
to financial debt. E.ON has set a debt factor of 3 as its target,
which is derived from the target rating of single A flat/A2.
The debt factor, and hence the capital structure, is actively
managed whenever it exceeds or falls short of the target of 3.
Based on adjusted EBITDA in 2009 of €13,526 million (2008:
€13,385 million) and economic net debt of €44,665 million as
of the balance sheet date (2008: €44,946 million), the debt
factor is 3.3 (2008: 3.4).
Critical Accounting Estimates and Assumptions;
Critical Judgments in the Application of Accounting
Policies
The preparation of the Consolidated Financial Statements
requires management to make estimates and assumptions that
may influence the application of accounting principles within
the Group and affect the measurement and presentation of
reported figures. Estimates are based on past experience
and on additional knowledge obtained on transactions to be
reported. Actual amounts may differ from these estimates.
The estimates and underlying assumptions are reviewed on
an ongoing basis. Adjustments to accounting estimates are
recognized in the period in which the estimate is revised
if the change affects only that period or in the period of the
revision and subsequent periods if both current and future
periods are affected.
Estimates are particularly necessary for the measurement of
the value of property, plant and equipment and of intangible
assets, especially in connection with purchase price allocations,
the recognition and measurement of deferred tax assets,
the accounting treatment of provisions for pensions and miscellaneous
provisions, for impairment testing in accordance
with IAS 36, as well as for the determination of the fair value
of certain financial instruments.
The underlying principles used for estimates in each of the
relevant topics are outlined in the respective sections.
New Standards and Interpretations
The International Accounting Standards Board (“IASB”) and the
International Financial Reporting Interpretations Committee
(“IFRIC”) have issued the following standards and interpretations
that have been transferred by the EU into European law
and whose application is mandatory in the reporting period
from January 1, 2009, through December 31, 2009:
IFRS 7, “Financial Instruments: Disclosures”
In March 2009, the IASB issued amendments to IFRS 7,
“Financial Instruments: Disclosures” (“IFRS 7”). The amended
standard requires that the methods and assumptions applied
in determining fair values be disclosed for each financial
instrument measured at fair value. If fair values were determined
using valuation techniques (fair value hierarchy level 3),
the assumptions applied in those must be disclosed. Reconciliation
from the beginning balances to the ending balances
is also required for these financial instruments. If the assumptions
change, the effects of such changes must be disclosed
with consideration given to materiality aspects. The amendments
to IFRS 7 have been transferred by the EU into European
law and their application is mandatory for fiscal years
beginning on or after January 1, 2009. E.ON is complying with
the enhanced disclosure requirements in these Consolidated
Financial Statements.
IAS 1, “Presentation of Financial Statements”
In September 2007, the IASB issued a revised version of IAS 1,
“Presentation of Financial Statements” (“IAS 1”). The main
changes from the previous version relate to the presentation
of equity and to changes in the titles of the financial statements.
In addition, whenever an accounting policy is applied
retrospectively and whenever items in the annual financial
statements are restated or reclassified retrospectively, the
opening balance sheet for the earliest comparative period must
be presented as well. The revised standard applies for fiscal
years beginning on or after January 1, 2009. It has been transferred
by the EU into European law.

Omnibus Standard to Amend Multiple International
Financial Reporting Standards
The IASB revises existing standards as part of its Annual
Improvements Process. The amendments made through this
process are considered by the IASB to be non-urgent but
necessary, and are therefore summarized in one omnibus standard.
The first omnibus standard was published by the IASB
in May 2008. Many of the amendments are effective for fiscal
years beginning on or after January 1, 2009. The omnibus
standard has been transferred by the EU into European law.
Pursuant to the requirements in the omnibus standard, E.ON
presents its derivative financial instruments as current and
non-current assets and liabilities based on their remaining
terms to maturity. This has resulted in reclassifications of other
operating assets and other operating liabilities from current
to non-current. Because these reclassifications are retrospective
reclassifications of items in the annual financial statements
as defined by IAS 1, E.ON must present the opening
balance sheet for the comparative period (January 1, 2008).
Amendments to IFRS 1, “First-time Adoption of
International Financial Reporting Standards,”
and IAS 27, “Consolidated and Separate Financial
Statements”—Cost of an Investment in a
Subsidiary, Jointly Controlled Entity or Associate
In May 2008, the IASB issued “Cost of an Investment in a Subsidiary,
Jointly Controlled Entity or Associate,” amendments
to IFRS 1, “First-time Adoption of International Financial Reporting
Standards,” and IAS 27, “Consolidated and Separate Financial
Statements.” The revisions simplify the first-time preparation
of separate financial statements under IFRS. Accordingly,
subsidiaries, jointly controlled entities and associates can now
be recognized either at fair value on the date of transition to
IFRS or at the carrying amount as determined under previous
accounting practice. In addition, the definition of the cost
method has been eliminated from IAS 27, with the result that
distributions of earnings from the time before the acquisition
of a subsidiary are no longer charged against the carrying
amount of the interest, but recognized in income. The amendments
have been transferred by the EU into European law and
their application is thus mandatory for fiscal years beginning
on or after January 1, 2009. They will have no impact on E.ON.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Amendment to IFRS 2, “Share-based Payment”—
Vesting Conditions and Cancellations
In January 2008, the IASB issued a revised version of IFRS 2,
“Share-based Payment” (“IFRS 2”). The changes from the
previous version relate primarily to the definition of vesting
conditions, the definition and treatment of non-vesting conditions,
and also include regulations for the cancellation of a
plan by a party other than the entity itself. The amendments
have been transferred by the EU into European law and their
application is mandatory for fiscal years beginning on or
after January 1, 2009. This amendment will have no impact
on E.ON’s Consolidated Financial Statements.
Amendments to IAS 32, “Financial Instruments:
Presentation,” and IAS 1, “Presentation of Financial
Statements”
In February 2008, the IASB approved amendments to IAS 32,
“Financial Instruments: Presentation,” and IAS 1, “Presentation
of Financial Statements.” The primary purpose of the amendments
is to address the presentation of particular types
of puttable financial instruments that have characteristics similar
to ordinary shares. IAS 32 previously required that such
financial instruments be classified as financial liabilities. The
new version provides for reporting such instruments as
equity if the holder can require the issuer to deliver a pro-rata
share of the net assets of the entity only on liquidation. The
amendments have been transferred by the EU into European
law and their application is thus mandatory for fiscal years
beginning on or after January 1, 2009. The amendments will
have no impact on E.ON.
Amendments to IFRIC 9, “Reassessment of
Embedded Derivatives,” and to IAS 39, “Financial
Instruments: Recognition and Measurement”
In March 2009, the IASB published amendments to IFRIC 9,
“Reassessment of Embedded Derivatives,” and to IAS 39,
“Financial Instruments: Recognition and Measurement,” clarifying
the accounting treatment of embedded derivatives
for which a reclassification amendment was used as provided
for by the IASB in October 2008 when it amended IAS 39.
Pursuant to these changes, if financial instruments are reclassified
out of the “fair value through profit or loss” category,
all embedded derivatives have to be reassessed and, if necessary,
separately accounted for in financial statements.
The amendments have been transferred by the EU into European
law and their application is thus mandatory for fiscal
years beginning after December 31, 2008. They will have no
impact on the Consolidated Financial Statements.
73

74 Notes
IFRIC 13, “Customer Loyalty Programmes”
IFRIC 13, “Customer Loyalty Programmes” (“IFRIC 13”), was
published in June 2007. The interpretation addresses accounting
by entities that grant loyalty award credits. The interpretation
clarifies how such entities should account for their obligations
to provide free or discounted goods or services to
customers who redeem award credits. IFRIC 13 has been transferred
by the EU into European law and its application is thus
mandatory for fiscal years beginning on or after January 1, 2009.
E.ON has identified no programs subject to the provisions of
IFRIC 13.
IFRIC 14, “IAS 19—The Limit on a Defined Benefit
Asset, Minimum Funding Requirements and their
Interaction”
IFRIC 14, “IAS 19—The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction” (“IFRIC 14”),
was published in July 2007. IFRIC 14 provides general guidance
on how to assess the limit in IAS 19 on the amount of a surplus
in a pension plan that can be recognized as an asset. The
interpretation also illustrates how the pension asset or liability
for defined benefit plans may be affected when there
is a statutory or contractual minimum funding requirement.
Under IFRIC 14 no additional liability needs to be recognized
by the employer unless the contributions that are payable
under the minimum funding requirement cannot be returned
to the Company. The interpretation has been transferred
into European law and its application is thus mandatory for
fiscal years beginning on or after January 1, 2009. Based on
the pension plans currently in place, there was no material
impact on E.ON’s Consolidated Financial Statements.
Additional Changes
The prior year’s receivables from and payables to investees
are now presented by type of underlying transaction. The
corresponding comparative figures have been adjusted accordingly.
Segment reporting does not include the presentation
of total assets by segment, as this is not a key internal management
measure at E.ON.
Standards and Interpretations Not Yet Applicable
in 2009
The IASB and the IFRIC have issued the following additional
standards and interpretations. These standards and interpretations
are not being applied by E.ON in the 2009 fiscal
year because adoption by the EU remains outstanding at
this time for some of them, or because their application is
not yet mandatory:
IFRS 1, “First-time Adoption of International
Financial Reporting Standards”
In November 2008, the IASB issued a revised version of IFRS 1,
“First-time Adoption of International Financial Reporting
Standards” (“IFRS 1”). The objective of the new version is to
simplify the application of this standard. Revised IFRS 1 is
to be applied no later than for fiscal years beginning on or
after December 31, 2009. It has been transferred by the EU
into European law.
The IASB additionally approved further amendments to IFRS 1
in July 2009 and in January 2010, which primarily define simplifying
exemptions in the initial transition to IFRS for particular
circumstances. The amendments are to be applied for
fiscal years beginning on or after January 1, 2010. Earlier application
is permitted. They have not yet been transferred into
European law.
Since E.ON already prepares its Consolidated Financial Statements
in accordance with IFRS, neither the restructuring of
IFRS 1 nor the amendments to it are of relevance.
IFRS 3, “Business Combinations”
In January 2008, the IASB issued a revised version of IFRS 3 as
part of its “Business Combinations II” project. The most significant
changes from the previous version relate to the recognition
and measurement of assets and liabilities acquired
through a business combination, the measurement of noncontrolling
interests, as well as to the calculation of goodwill
and the presentation of transactions with variable purchase
prices. The revised standard is to be applied for transactions
taking place in fiscal years beginning on or after July 1, 2009.
The standard has been transferred by the EU into European
law. Given the option in the standard concerning the determination
of goodwill, which may be exercised on an individual
basis, E.ON is unable to make a general statement at
this time on the future impact of IFRS 3 on its Consolidated
Financial Statements.

IFRS 9, “Financial Instruments”
In November 2009, the IASB issued IFRS 9, “Financial Instruments”
(“IFRS 9”). Under this new IFRS 9, all financial instruments
currently within the scope of IAS 39 will henceforth be
subdivided into only two classifications: financial instruments
measured at amortized cost and financial instruments measured
at fair value. The new standard is to be applied for
fiscal years beginning on or after January 1, 2013. Earlier application
is permitted. The standard has not yet been transferred
by the EU into European law. E.ON is currently evaluating
the potential effects arising from the standard.
IAS 24, “Related Party Disclosures”
In November 2009, the IASB issued a revised version of IAS 24
“Related Party Disclosures” (“IAS 24”). In particular, the revisions
clarify the definition of a “related party” and simplify the
disclosure requirements for entities deemed related by virtue
of being controlled or significantly influenced by a particular
government. It has not yet been transferred by the EU into
European law. The application of revised IAS 24 is mandatory
for fiscal years beginning on or after January 1, 2011. Earlier
application is permitted. E.ON is currently evaluating the impact
on its Consolidated Financial Statements.
IAS 27, “Consolidated and Separate Financial
Statements”
In January 2008, the IASB issued a revised version of IAS 27,
“Consolidated and Separate Financial Statements” (“IAS 27”),
as part of its “Business Combinations II” project, which contains
guidance on consolidation. In particular, this standard
for the first time deals with transactions in which shares in
a company (subsidiary) are bought or sold without resulting
in a change of control. Additional significant changes from
the previous version relate in particular to the recognition and
measurement of the remaining investment in an entity after
a loss of control of what had been a subsidiary, and to the
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
recognition of losses attributable to minority interests. The
amendments have been transferred into European law and
their application is mandatory for fiscal years beginning on
or after July 1, 2009. The amendments to IAS 27 may have transaction-related
effects on the E.ON Consolidated Financial
Statements that cannot be estimated at this time.
Omnibus Standard to Amend Multiple International
Financial Reporting Standards
In addition to the amendments of individual standards that
have been described above, the IASB also revises existing
standards as part of its Annual Improvements Process. The
second such omnibus standard was published by the IASB
in April 2009. Many of the amendments in it are effective for
fiscal years beginning on or after January 1, 2010. The omnibus
standard has not yet been transferred by the EU into European
law. To the extent that changes in this year’s standard
are of relevance to E.ON, they will be applied accordingly in
the future. Current estimates do not indicate that the amendments
will have a material impact on the Consolidated
Financial Statements.
Amendments to IFRS 2, “Share-based Payment”
In June 2009, the IASB issued amendments to IFRS 2 that
clarify how cash-settled share-based payment transactions are
accounted for by a subsidiary within a group. The guidance
relates to arrangements in which an entity that prepares financial
statements receives goods or services but its parent or
another entity in the group must pay for those goods or services,
not the receiving entity. The amendments also incorporate
guidance previously included in IFRIC 8, “Scope of IFRS 2,”
and IFRIC 11, “IFRS 2—Group and Treasury Share Transactions.”
As a result, the IASB has withdrawn IFRIC 8 and IFRIC 11. The
amendments to IFRS 2 are to be applied for the first time for
fiscal years beginning on or after January 1, 2010. Earlier
application is permitted. They have not yet been transferred
by the EU into European law. E.ON anticipates that these
amendments will not have a material impact on its Consolidated
Financial Statements.
75

76 Notes
Amendment to IAS 32, “Financial Statements:
Presentation”—Classification of Rights Issues
In October 2009, the IASB issued an amendment to IAS 32,
“Financial Statements: Presentation,” regulating the classification
of rights issues. This new amendment requires that certain
subscription rights, options and warrants that are denominated
in a foreign currency be recognized as equity by the
issuer of the equity instrument to which the rights refer, rather
than as a derivative liability, as was past practice. The amendment
is to be applied for fiscal years beginning on or after
February 1, 2010. Earlier application is permitted. The amendment
has been transferred by the EU into European law. E.ON
does not anticipate any impact on its Consolidated Financial
Statements.
Amendment to IAS 39, “Financial Instruments:
Recognition and Measurement”—Eligible Hedged
Items
In July 2008, the IASB issued an amendment to IAS 39, “Financial
Instruments: Recognition and Measurement”—Eligible
Hedged Items. The amendment primarily clarifies the principles
for the designation of inflation risks as a hedged item and
for the designation of a one-sided risk in a hedged item. The
amendment is to be applied for fiscal years beginning on
or after July 1, 2009. The standard has been transferred by the
EU into European law. The amendment will have no material
impact on E.ON.
IFRIC 12, “Service Concession Arrangements”
IFRIC 12, “Service Concession Arrangements” (“IFRIC 12”),
was published in November 2006. The interpretation governs
accounting for arrangements in which a public-sector institution
grants contracts to private companies for the performance
of public services. In performing these services, the
private company uses infrastructure that remains under the
control of the public-sector institution. The private company
is responsible for the construction, operation, and maintenance
of the infrastructure. The interpretation has been transferred
by the EU into European law and its application is thus mandatory
for fiscal years beginning on or after March 29, 2009.
E.ON has evaluated the effects of IFRIC 12 and has determined
that there will be no material impact on its Consolidated
Financial Statements.
IFRIC 15, “Agreements for the Construction of
Real Estate”
IFRIC 15, “Agreements for the Construction of Real Estate”
(“IFRIC 15”), was published in July 2008. The interpretation
provides guidance on accounting practice for the recognition
of revenue from real estate sales where agreements are
entered into with the purchaser before construction is complete.
IFRIC 15 defines criteria that determine whether an
agreement is within the scope of IAS 11, “Construction Contracts”,
or IAS 18, “Revenue.” This also determines when revenue
from the construction should be recognized. It additionally
specifies which disclosures must be made in the notes
to the financial statements. The interpretation has been transferred
by the EU into European law and its application is
thus mandatory for fiscal years beginning after December 31,
2009. The first-time application of IFRIC 15 will not have a
material impact on E.ON’s Consolidated Financial Statements.
IFRIC 16, “Hedges of a Net Investment in a Foreign
Operation”
IFRIC 16, “Hedges of a Net Investment in a Foreign Operation”
(“IFRIC 16”), was published in July 2008. The interpretation
addresses issues arising in connection with the hedging of a
foreign operation. It provides guidance on identifying what
is a hedged risk in the hedge of a net investment in a foreign
operation, where a hedging instrument to minimize this risk
may be held within a group of companies, and how an entity
should proceed upon disposal of the foreign operation. The
interpretation has been transferred by the EU into European
law and its application is mandatory for fiscal years beginning
after June 30, 2009. There will be no material changes for
E.ON arising from the first-time application of IFRIC 16.

IFRIC 17, “Distributions of Non-cash Assets to
Owners”
IFRIC 17, “Distributions of Non-cash Assets to Owners”
(“IFRIC 17”), was published in November 2008. The interpretation
provides guidance on how an entity should measure
distributions of assets other than cash when it pays dividends
to its owners. Under IFRIC 17, a dividend payable should be
recognized when the dividend has been appropriately authorized
and is no longer at the discretion of the entity. This
payable is measured at the fair value of the net assets to be
distributed. The difference between the dividend payable
and the carrying amount of the asset distributed must be recognized
in income. The interpretation also requires an entity
to provide additional disclosures if the assets being held for
distribution meet the definition of a discontinued operation.
The interpretation has been transferred by the EU into European
law and its application is thus mandatory for fiscal
years beginning after October 31, 2009. E.ON anticipates no
impact on its Consolidated Financial Statements.
IFRIC 18, “Transfers of Assets from Customers”
IFRIC 18, “Transfers of Assets from Customers” (“IFRIC 18”),
was published in January 2009. IFRIC 18 applies in cases where
an entity receives from its customers a non-cash asset, or
the funds necessary for the production or acquisition of a
non-cash asset, in order to then provide those customers
with access to a network, a service or the delivery of goods.
(3) Scope of Consolidation
The number of consolidated companies changed as follows:
Scope of Consolidation
Domestic Foreign Total
Consolidated companies
as of January 1, 2008 153 438 591
Additions 18 91 109
Disposals/Mergers 20 34 54
Consolidated companies
as of December 31, 2008 151 495 646
Additions 15 14 29
Disposals/Mergers 21 68 89
Consolidated companies
as of December 31, 2009 145 441 586
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
The interpretation has been transferred by the EU into European
law and its application is thus mandatory, at the latest, for
fiscal years beginning after October 31, 2009. E.ON anticipates
no material impact on its Consolidated Financial Statements.
IFRIC 19, “Extinguishing Financial Liabilities with
Equity Instruments”
IFRIC 19, “Extinguishing Financial Liabilities with Equity Instruments”
(“IFRIC 19”), was published in November 2009. IFRIC 19
clarifies the accounting treatment of financial liabilities that
are settled through the transfer of equity instruments. The
financial instruments issued are deemed part of the “consideration
paid” as defined by IAS 39.41. The borrower must
therefore fully or partially derecognize the liability. Any difference
between the carrying amount of the financial liability
thus (partially) extinguished and the initial measurement
amount of the equity instruments issued is recognized in
income. IFRIC 19 is effective for fiscal years beginning on or
after July 1, 2010. Earlier application is permitted. It has not
yet been transferred by the EU into European law. E.ON anticipates
no impact on its Consolidated Financial Statements.
In 2009, a total of 57 domestic and 74 foreign associated companies
were accounted for under the equity method (2008:
103 domestic and 83 foreign). Significant acquisitions, disposals
and discontinued operations are discussed in Note 4.
77

78 Notes
(4) Acquisitions, Disposals and Discontinued
Operations
Acquisitions in 2009
Yuzhno-Russkoye
In October 2008, E.ON and OAO Gazprom, Moscow, Russian
Federation (“Gazprom”), reached an understanding on E.ON
acquiring an interest in the Yuzhno-Russkoye gas field in
Siberia. As consideration for this ownership stake, E.ON delivered
to Gazprom the Gazprom shares indirectly held by E.ON,
which represent 2.93 percent of the equity of Gazprom and
are valued at €2.3 billion, along with a small cash component.
The interest in the gas field was purchased by acquiring 25 percent
minus three of the shares of OAO Sever nefte gazprom,
Major Balance Sheet Line Items—ZAO Gazprom YRGM Development
€ in millions
Krasnoselkup, Russian Federation, which holds the development
license. This interest is accounted for as an associated
company, using the equity method, and carried at a prorated
acquisition cost of €0.2 billion. There were no significant
effects based on the preliminary purchase price allocation for
this acquisition. The gas attributable to E.ON’s interest is
marketed through the project company ZAO Gazprom YRGM
Development, Salekhard, Russian Federation, whose earnings
are attributable to E.ON in the form of preferred stock. Given
that the significant risks and rewards of ownership have been
transferred, this company had to be consolidated in full within
the E.ON Group since October 2009. The following data refer
to ZAO Gazprom YRGM Development:
Carrying amounts
before initial
recognition
Purchase price
allocation
Carrying amounts
at initial
recognition
Intangible assets – 2,564 2,564
Other assets 1 4 5
Total assets 1 2,568 2,569
Non-current liabilities – 513 513
Total liabilities 0 513 513
Net assets 1 2,055 2,056
Attributable to shareholders of E.ON AG – 2,055 0
Attributable to minority interests 1 – 1
Acquisition cost 2,205
Remaining goodwill (preliminary) 150 150
The potential effects on revenues and earnings of a full-year
consolidation of the company cannot be computed reliably
because of the new business structure. Only a small amount
of liquid funds was acquired in the transaction.
Revenues of €320 million and net income of €79 million,
taking into account the effects of the preliminary purchase
price allocation on earnings, are recognized in the 2009
Consolidated Financial Statements.
Significant assets in the purchase price allocation include
favorable gas supply contracts, which account for the majority
of the difference. The valuation of these contracts, in
particular, is not yet complete. Non-current liabilities consist
exclusively of deferred taxes. The difference remaining at
the project company is €150 million, recognized as preliminary
goodwill. The purchase price allocation is preliminary as of
December 31, 2009.

Langerlo-Vilvoorde NV
In the course of implementing E.ON’s commitment to the
European Commission to dispose of a variety of generating
capacity in Germany, an agreement was made with Electrabel
SA/NV (“Electrabel”), Brussels, Belgium, on the economic
exchange of a variety of power plant units and electricity
supplies in Germany and Belgium.
Major Balance Sheet Line Items—Langerlo-Vilvoorde NV
€ in millions
Carrying amounts
before initial
recognition
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Purchase price
allocation
Carrying amounts
at initial
recognition
Intangible assets – 11 11
Property, plant and equipment 512 -71 441
Other assets 17 55 72
Total assets 529 -5 524
Non-current liabilities 16 – 16
Current liabilities 25 53 78
Total liabilities 41 53 94
Net assets 488 -58 430
Goodwill (preliminary) 40 40
Carrying amounts before initial consolidation are generally
determined on the basis of IFRS. Reconciliation adjustments
to the accounting policies applied in the E.ON Group are presented
together with the adjustments from the purchase
price allocation. Revenues of €52 million and an earnings contribution
of €1 million, taking into account the effects of the
purchase price allocation on earnings, are recognized in the
2009 Consolidated Financial Statements. The potential effects
on revenues and earnings of a full-year consolidation of the
company cannot be computed reliably given that the power
plants were previously consolidated within the Electrabel group.
Only a small amount of liquid funds was acquired.
The purchase price allocation is still preliminary as of December
31, 2009, because investigations relating to the property,
plant and equipment, as well as evaluations of legal issues,
remain outstanding. The remaining difference was reported
as preliminary goodwill as of December 31, 2009.
In this context, E.ON acquired all of the shares of a power plant
unit in Belgium, Langerlo-Vilvoorde NV, Vilvoorde, Belgium.
The unit operates coal- and gas-fired power plants at the
Langerlo and Vilvoorde locations. The acquisition of this unit
took place at the beginning of November 2009 in exchange
for the power plant units delivered to Electrabel. A small remainder
not covered by the transferred assets was settled by
E.ON in cash.
Discontinued Operations in 2009
WKE
Through Western Kentucky Energy Corp. (“WKE”), Henderson,
Kentucky, U.S., E.ON U.S. had a 25-year lease on and operated
the generating facilities of Big Rivers Electric Corporation
(“BREC”), a power-generation cooperative in western Kentucky,
and a coal-fired generating facility owned by the City of
Henderson, Kentucky, U.S.
In March 2007, E.ON U.S. entered into a termination agreement
with BREC to terminate the lease and the operating
agreements.
The agreement closed in July 2009. The agreement involved offsetting
payments amounting to approximately €0.5 billion.
Subsequent effects from the settlement of existing contractual
relationships that will be recognized in income and cash flows
are expected to continue to occur through the end of 2010.
These effects will continue to be reported under income/loss
from discontinued operations.
79

80 Notes
The tables below provide selected financial information and
major balance sheet line items from the discontinued WKE operations
in the U.S. Midwest segment for the periods indicated:
Selected Financial Information—
WKE (Summary)
€ in millions 2009 2008
Sales 92 204
Other income/expenses, net -332 -414
Loss from continuing operations before
income taxes and minority interests -240 -210
Income tax benefit 89 82
Loss from discontinued operations -151 -128
Major Balance Sheet Line Items—
WKE (Summary)
€ in millions
December 31
2009 2008
Intangible assets and property,
plant and equipment – 156
Other assets – 422
Total assets 0 578
Total liabilities – 711
Disposal Groups and Assets Held for Sale in 2009
Endesa Europa/Viesgo
As part of the acquisition of the Endesa Europa/Viesgo activities,
an agreement was reached with A2A S.p.A. (“A2A”), Milan,
Italy, the minority shareholder of E.ON Produzione S.p.A. (“E.ON
Produzione”), Sassari, Italy, to acquire the minority interest
primarily in return for company-owned generating capacity
of the Italy market unit valued at approximately €1.4 billion.
The disposal group was reported in the New Markets segment.
The agreement closed in July 2009. Accordingly, the relevant
assets and liabilities were sold in the third quarter of 2009.
Commitment to the European Commission
In December 2008, E.ON’s commitment to the European
Commission to sell a variety of generating capacity and the
ultrahigh-voltage network in Germany took effect. Based
on this commitment and on declarations of intent already
signed at the end of 2008 with two parties interested in
acquiring generating capacity, namely Electrabel and EnBW
Energie Baden-Württemberg AG (“EnBW”), Karlsruhe, Germany,
the total capacity to be sold, along with associated assets
and liabilities, has been presented as a disposal group since
December 2008. The net carrying amounts of the disposal
group relate exclusively to the Central Europe market unit and
amounted to approximately €0.1 billion (December 31, 2008:
€0.4 billion). The disposals of 0.5 GW of capacity to EnBW,
of 0.3 GW of capacity to Österreichische Elektrizitätswirtschafts-AG,
Vienna, Austria, and to Verbund-Kraftwerke Beteiligungsholding
GmbH & Co KG, Mödling, Austria, and of
1.6 GW of capacity, including electricity supplies, to Electrabel
were already completed in 2009, resulting in a total gain on
disposal of approximately €2.4 billion. In September and October
of 2009, binding contracts were signed with EnBW and
Electricité de France SA (“EdF”), Paris, France, as well as with
Stadtwerke Hannover AG (“Stadtwerke Hannover”), Hanover,
Germany, on the disposal of approximately 1.6 GW of additional
generating capacity, including electricity supplies. The
remaining outstanding 35 percent of the shares of Société
Nationale d’Electricité et de Thermique S.A. (“SNET France”),
Paris, France, were acquired in this transaction with EnBW
and EdF. When the transaction closed in December, E.ON thus
became the sole shareholder of SNET France as of year-end
2009. The closing of the contract with Stadtwerke Hannover
was completed in January 2010.
In November 2009, an agreement was reached with TenneT B.V.,
Arnhem, The Netherlands, on the disposal of the German
ultrahigh-voltage network. Accordingly, the ultrahigh-voltage
network was reclassified in the fourth quarter of 2009 with
a net carrying amount of approximately €0.8 billion. Significant
assets and liabilities included property, plant and
equipment and non-current assets in the amount of €1.0 billion
and €0.7 billion, respectively, along with liabilities and
deferred taxes in the amount of €0.9 billion and €0.2 billion,
respectively. The agreement is expected to close by the end
of February 2010.

Interest in OAO Gazprom
In October 2008, E.ON and Gazprom reached an understanding
on E.ON acquiring an interest in the Yuzhno-Russkoye gas
field in Siberia. As consideration for this ownership stake, Gazprom
is to receive the Gazprom shares indirectly held by
E.ON, representing approximately one-half of the approximately
6 percent of the equity of Gazprom held by E.ON. The shares
were reported as assets held for sale since October 2008. The
relevant contracts were closed in October 2009. Through the
disposal of the interest, fair-value adjustments accumulated
in other comprehensive income were realized in income, which
resulted in a book gain of €1.8 billion.
Thüga
In 2009, E.ON conducted negotiations on a sale of the Thüga
group, which is held in the Pan-European Gas market unit, to
a consortium of municipal acquirers (Integra/Kom9). The
negotiations did not include the interests in GASAG Berliner
Gaswerke Aktiengesellschaft, Berlin, Germany, in HEAG Südhessische
Energie AG, Darmstadt, Germany, in Stadtwerke
Duisburg Aktiengesellschaft, Duisburg, Germany, and in Stadtwerke
Karlsruhe GmbH, Karlsruhe, Germany. Given the progress
of the negotiations, the Thüga group has been reported as a
disposal group since the third quarter of 2009. As of September
30, 2009, the major balance sheet items of the disposal
group consisted of financial assets (approximately €2.0 billion)
and non-current intangible assets (approximately €0.9 billion)
and of provisions and liabilities (approximately €0.6 billion).
Binding contracts on a purchase price of approximately €2.9 billion
were signed with the acquirer consortium in October
2009. The transaction was completed in December 2009 and
resulted in a gain on disposal of approximately €0.3 billion.
VKE Asset Restructuring
In 2009, an amount of €1.7 billion in employer contributions
was paid into the existing Contractual Trust Arrangement (CTA)
by certain German entities for the external financing of the
existing defined benefit obligations. Collateral was transferred
to Pensions abwicklungs trust e.V. (the trustee) through the
exclusive and complete use of an institutional fund that until
then had been a consolidated entity of the mutual insurance
fund Versorgungs kasse Energie (“VKE”). The fair-value adjustments
recognized in other comprehensive income were
reclassified to income in the amount of €0.1 billion.
Acquisitions in 2008
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Endesa Europa/Viesgo
In the context of the settlement of the bidding contest between
Enel/Acciona and E.ON for the Spanish Endesa group in
April 2007, E.ON secured for itself a substantial number of strategic
holdings, mostly in Italy, Spain and France, in return
for withdrawing its cash takeover offer seeking to acquire a
majority interest in Endesa. The total transaction value consisted
of the approximately €8.5 billion paid in cash for the
equity, and of approximately €2.9 billion in assumed debt.
Following the completion of the takeover of Endesa by Enel/
Acciona at the end of October 2007, E.ON acquired from Enel
all of the shares of the following companies on June 26, 2008:
• Electra de Viesgo Distribución S.L., Santander, Spain
• Enel Viesgo Generación S.L., Santander, Spain
• Enel Viesgo Servicios S.L., Santander, Spain
and, at the same time, all of the shares of Endesa Europa S.L.,
Madrid, Spain, from Endesa.
The aforementioned companies were renamed in the second
half of 2008 and are now called E.ON Distribución S.L.
(“E.ON Distribución”), E.ON Generación S.L. (“E.ON Generación”),
E.ON Servicios S.L. (“E.ON Servicios”) and E.ON Europa S.L.
(“E.ON Europa”). The companies are now all based in Madrid,
Spain.
An agreement had already been reached in June 2008 with
the minority shareholder of E.ON Produzione, A2A, which
originally held a 20-percent interest, to acquire that minority
interest primarily in return for company-owned generating
capacity in Italy originally valued at approximately €1.5 billion.
Since the purchase price was independent of any change in
the value of the generating capacity to be specified, the full
100 percent of E.ON Produzione already had to be included
in the Consolidated Financial Statements effective June 30,
2008. The approximately 1.5 GW of generating capacity to
be transferred was specified in July 2008. Following a contractual
agreement signed in April 2009, the legal transfer of
the minority interest and of the generating capacity will be
effective as of July 1, 2009. This capacity was reported as
a disposal group from its specification as such in the third
quarter of 2008 until the completion of the arrangement.
Con sidering the net financial position attributable to the
81

82 Notes
generating capacity to be transferred and the finalized purchase
price allocation, the net carrying amount of this disposal
group was approximately €1.4 billion. The continuing
earnings share of the minority shareholder was presented
as a purchase price adjustment from the third quarter of 2008
until disposal.
Initial recognition of the operations took place in the second
quarter of 2008.
The purchase price allocation was finalized in the second
quarter of 2009. Compared to the preliminary figures presented
at year-end 2008, only minor changes were recorded, mainly
in the areas of unfavorable contracts and deferred taxes.
The reconciliation to the E.ON Group’s accounting policies is
finalized. Reconciliation adjustments to the accounting policies
applied at the E.ON Group were presented together with the
adjustments from the purchase price allocation.
Major Balance Sheet Line Items—Endesa Europa/Viesgo Activities
€ in millions
The allocation of final goodwill was conducted in the second
quarter of 2009. It was based on the retroactive allocation of
preliminary goodwill to the respective cash- generating units
(including the adjustment of prior-year figures) conducted
in the first quarter of 2009. In addition, a final determination
was made in the second quarter of 2009 on the preliminary
impairment charge that was recorded as of December 31, 2008,
and retroactively allocated to the respective cash- generating
units. Factoring in the final adjustments to purchase price allocation,
the impairment charge increased to €1,813 million.
Of this total, E.ON recorded impairment charges of €1,663 million
on goodwill at the Italy market unit and impairment
charges of approximately €150 million on other non-current
assets at the Italy and Climate & Renewables market units.
Corresponding adjustments were made on the balance sheet
and in the income statement for 2008.
Carrying amounts
before initial
recognition
Purchase price
allocation
Carrying amounts
at initial
recognition
Intangible assets 477 2,124 2,601
Property, plant and equipment 6,754 453 7,207
Other assets 2,783 322 3,105
Total assets 10,014 2,899 12,913
Non-current liabilities 2,663 894 3,557
Current liabilities 4,587 447 5,034
Total liabilities 7,250 1,341 8,591
Net assets 2,764 1,558 4,322
Attributable to shareholders of E.ON AG 2,377 -2,377 –
Attributable to minority interests 387 -86 301
Acquisition cost paid in cash 8,510
Non-monetary consideration for minority interest 1,375
Goodwill before impairment and reclassification 5,864
Reclassification of goodwill to disposal groups (A2A) -644
Impairment -1,663
Goodwill 3,557 3,557

Disposal Groups and Assets Held for Sale in 2008
Statkraft/E.ON Sverige
Based on the letter of intent signed in October 2007 concerning
the virtually full acquisition from Statkraft AS (“Statkraft”),
Oslo, Norway, of its 44.6-percent minority interest in E.ON Sverige
primarily in exchange for a variety of power plant units and
shares of E.ON AG, the conditions for reporting as a disposal
(5) Revenues
Revenues are generally recognized upon delivery of products
to customers or upon fulfillment of services. Delivery is considered
to have occurred when the risks and rewards associated
with ownership have been transferred to the buyer, compensation
has been contractually established and collection of
the resulting receivable is probable.
Revenues are generated primarily from the sale of electricity
and gas to industrial and commercial customers and to retail
customers. Additional revenue is earned from the distribution
of gas and electricity, from deliveries of steam, heat and water,
as well as from proprietary trading.
(6) Own Work Capitalized
Own work capitalized amounted to €532 million in 2009 (2008:
€526 million) and resulted primarily from engineering services
in networks and in connection with new construction projects.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
group the assets and related liabilities to be sold, in particular
the personnel-related liabilities, were fulfilled in the second
quarter of 2008. Write-downs to lower fair values were not
necessary. The disposal took place at the end of December 2008;
an after-tax gain of €1.0 billion was realized from the disposal
of the power plant units. The delivery of the treasury shares
was recognized in equity, with no effect on income.
Revenues from the sale of electricity and gas to industrial and
commercial customers and to retail customers are recognized
when earned on the basis of a contractual arrangement with
the customer; they reflect the value of the volume supplied,
including an estimated value of the volume supplied to customers
between the date of their last meter reading and
period-end. Unrealized and realized proceeds from proprietary
trading activities are recognized net in revenues.
The classification of revenues by segment is presented in
Note 33.
83

84 Notes
(7) Other Operating Income and Expenses
The table below provides details of other operating income
for the periods indicated:
Other Operating Income
€ in millions 2009 2008
Income from exchange
rate differences 10,849 8,571
Gain on derivative financial
instruments 7,473 3,543
Gain on disposal of investments 5,156 1,446
Gain on disposal of property,
plant and equipment 153 419
Miscellaneous 1,330 1,475
Total 24,961 15,454
In general, E.ON employs derivatives to hedge commodity risks
as well as currency and interest risks.
Gains and losses on derivative financial instruments relate to
gains from fair value measurement and to realized gains
from derivatives under IAS 39, with the exception of income
effects from interest rate derivatives.
Income from exchange rate differences consisted primarily
of realized gains from currency derivatives in the amount of
€9,113 million (2008: €6,195 million) and of effects from foreign
currency translation on the balance sheet date in the amount
of €1,241 million (2008: €1,974 million).
The gains on the disposal of investments and securities consisted
primarily of the €2,359 million gain on the disposal of
generating capacity in the context of the commitment made
to the European Commission, the book gain of €1,818 million
on the disposal of the shares of Gazprom indirectly held by
E.ON, and of the book gain of €328 million on the sale of the
Thüga group (see also Note 4). Gains were also realized on
the sale of securities in the amount of €314 million (2008:
€554 million). In 2008, the gains on the disposal of investments
also included the gain on the Statkraft transaction,
which amounted to €1,070 million.
Miscellaneous other operating income in 2009 consisted primarily
of reductions of valuation allowances on accounts
receivable, rental and leasing income, the sale of scrap metal
and materials, as well as compensation payments received
for damages.
The following table provides details of other operating
expenses for the periods indicated:
Other Operating Expenses
€ in millions 2009 2008
Loss from exchange rate differences 11,095 7,879
Loss on derivative financial instruments 5,701 6,552
Taxes other than income taxes 255 262
Loss on disposal of investments 122 401
Miscellaneous 5,430 5,243
Total 22,603 20,337
Losses from exchange rate differences consisted primarily
of realized losses from currency derivatives in the amount of
€9,344 million (2008: €6,088 million) and of effects from foreign
currency translation on the balance sheet date in the amount
of €1,207 million (2008: €1,418 million).
Miscellaneous other operating expenses include a European
Commission fine for alleged market sharing with GdF Suez in
the amount of €553 million, concession payments in the
amount of €492 million (2008: €477 million), expenses for
external audit and non-audit services and consulting in the
amount of €315 million (2008: €474 million), advertising and
marketing expenses in the amount of €241 million (2008:
€370 million), as well as write-downs of trade receivables in
the amount of €382 million (2008: €422 million). Additionally
reported in this item are services rendered by third parties,
IT expenditures and insurance premiums.
Other operating expenses from exploration activities totaled
€41 million (2008: €53 million).

(8) Cost of Materials
The principal components of expenses for raw materials and
supplies and for purchased goods are the purchase of gas
and electricity and of fuels for electricity generation, as well
as the nuclear segment. Network usage charges are also
included in this line item. Expenses for purchased services
consist primarily of maintenance costs.
(9) Financial Results
The following table provides details of financial results for
the periods indicated:
Financial Results
€ in millions 2009 2008
Income from companies in which equity
investments are held 167 217
Impairment charges on other financial
assets and current securities -391 -675
Income from equity investments -224 -458
Income from securities, interest
and similar income 601 1,159
Available for sale 277 407
Loans and receivables 190 395
Held for trading 44 124
Other interest income 90 233
Interest and similar expenses -2,850 -3,052
Amortized cost -1,658 -1,625
Held for trading -31 -131
Other interest expenses -1,161 -1,296
Net interest income -2,249 -1,893
Financial results -2,473 -2,351
The measurement categories are described in detail in Note 2. Prior-year values
for available-for-sale securities and for loans and receivables have been adjusted
to improve comparability.
Cost of Materials
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
€ in millions 2009 2008
Expenses for raw materials and supplies
and for purchased goods 59,237 63,611
Expenses for purchased services 2,850 2,808
Total 62,087 66,419
The change in net interest income in 2009 as compared with
the previous year was due primarily to the lower interest
income attributable to the reduced interest rates on availablefor-sale
securities and loans granted. Low interest rates were
also reflected in the interest expense, which declined even as
average financial liabilities have increased. The stabilization
of the financial markets could be seen in the impairments
recognized on the securities held primarily as part of the
Company’s asset management activities (see Note 31), which
were not as high as in 2008.
Other interest income consists mostly of the income from
lease receivables (finance leases). Other interest expense
includes the accretion of provisions for asset retirement obligations
in the amount of €750 million (2008: €759 million).
Also contained in this item is the interest cost from provisions
for pensions—net of the expected return on plan assets—in
the amount of €228 million (2008: €145 million).
In accordance with IAS 32, the accretion of liabilities in connection
with put options resulted in an expense of €67 million
(2008: €61 million).
Interest expense was reduced by capitalized interest on debt
totaling €338 million (2008: €182 million).
Realized gains and losses from interest rate swaps are shown
net on the face of the income statement.
85

86 Notes
(10) Income Taxes
The following table provides details of income taxes, including
deferred taxes, for the periods indicated:
Income Taxes
€ in millions 2009 2008
Domestic income taxes 1,484 977
Foreign income taxes 541 937
Other income taxes 33 5
Current taxes 2,058 1,919
Domestic 120 -398
Foreign 798 -687
Deferred taxes 918 -1,085
Total income taxes 2,976 834
The increase in tax expense of €2,142 million compared with
2008 primarily reflects the increase in deferred taxes arising
from gains on derivatives. On the other hand, the effective
tax rate decreased from 32 percent in 2008 to 25 percent in
2009, as the impairment charges on goodwill (see Note 14)
recognized in the E.ON Consolidated Financial Statements for
2008 did not lead to tax relief.
German legislation providing for fiscal measures to accompany
the introduction of the European Company and amending
other fiscal provisions (“SE-Steuergesetz” or “SEStEG”), which
came into effect on December 13, 2006, altered the regulations
on corporate tax credits arising from the corporate imputation
system (“Anrechnungsverfahren”), which had existed until 2001.
The change de-links the corporate tax credit from distributions
of dividends. Instead, after December 31, 2006, an unconditional
claim for payment of the credit in ten equal annual installments
from 2008 through 2017 has been established. The resulting
receivable is included in income tax assets and amounted to
€980 million in 2009 (2008: €1,157 million).
Liabilities from income taxes in 2009 consisted primarily of current
income taxes for that year and for prior-year periods that
have not yet been definitively examined by the tax authorities.
As of December 31, 2009, €31 million (2008: €8 million) in
deferred tax liabilities were recognized for the differences
between net assets and the tax bases of subsidiaries and
associated companies (the so-called “outside basis differences”).
Deferred tax liabilities were not recognized for subsidiaries
and associated companies to the extent that the Company can
control the reversal effect and that it is therefore probable
that temporary differences will not be reversed in the foreseeable
future. Accordingly, deferred tax liabilities were not
recognized for temporary differences of €1,933 million (2008:
€1,543 million) at subsidiaries and associated companies, as
E.ON is able to control the timing of their reversal and the temporary
difference will not reverse in the foreseeable future.
Changes in tax rates in Italy, Hungary and a number of other
countries resulted in tax expense of €28 million in total. In
2008, changes in foreign tax rates and tax law produced total
deferred tax income of €112 million.

The differences between the 2009 base income tax rate of
30 percent (2008: 30 percent) applicable in Germany and the
effective tax rate are reconciled as follows:
Reconciliation to Effective Income Taxes/Tax Rate
Corporate income taxes relating to discontinued operations
are reported on the face of the income statement under
“Income/Loss from discontinued operations, net.” They relate
exclusively to WKE and amounted to -€89 million in 2009
(2008: -€82 million). See Note 4 for additional discussion.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Deferred tax assets and liabilities as of December 31, 2009, and
December 31, 2008, break down as shown in the following table:
Deferred Tax Assets and Liabilities
€ in millions
2009 2008
€ in
millions %
€ in
millions %
Expected corporate income tax 3,538 30.0 775 30.0
Credit for dividend distributions -47 -0.4 -5 -0.2
Foreign tax rate differentials -52 -0.4 -115 -4.5
Changes in tax rate/tax law 28 0.2 -112 -4.3
Tax effects on tax-free income 50 0.4 -145 -5.6
Tax effects on equity accounting -282 -2.4 -289 -11.2
Other 1 -259 -2.2 725 28.1
Effective income taxes/tax rate 2,976 25.2 834 32.3
1 In 2008, including €1,041 million due to goodwill impairment and -€200 million due to deconsolidation gains.
December 31
2009 2008
Intangible assets 407 532
Property, plant and equipment 716 679
Financial assets 244 218
Inventories 22 20
Receivables 994 433
Provisions 4,934 3,743
Liabilities 3,443 4,323
Net operating loss carryforwards 1,065 717
Tax credits 126 107
Other 413 150
Subtotal 12,364 10,922
Changes in value -171 -179
Deferred tax assets 12,193 10,743
Intangible assets 2,340 1,633
Property, plant and equipment 6,788 6,378
Financial assets 211 265
Inventories 161 225
Receivables 4,060 4,369
Provisions 826 603
Liabilities 623 515
Other 1,613 784
Deferred tax liabilities 16,622 14,772
Net deferred tax assets/liabilities (-) -4,429 -4,029
87

88 Notes
Net deferred taxes break down as follows based on the timing
of their reversal:
Net Deferred Tax Assets and Liabilities
€ in millions
December 31, 2009 December 31, 2008 January 1, 2008
Current
Noncurrent
Current
Noncurrent
Current
Noncurrent
Deferred tax assets 237 3,010 122 2,305 286 1,081
Changes in value -1 -170 -57 -122 -4 -208
Net deferred tax assets 236 2,840 65 2,183 282 873
Deferred tax liabilities -411 -7,094 -1,162 -5,115 -701 -6,854
Net deferred tax assets/liabilities (-) -175 -4,254 -1,097 -2,932 -419 -5,981
The separate presentation of derivative financial instruments
by maturity has also had effects on the presentation and
netting of deferred taxes. This change resulted in a reduction
of €223 million in deferred tax assets and liabilities as of
December 31, 2008.
Of the deferred taxes reported, a total of €335 million was
charged directly to equity in 2009 (2008: €1,098 million).
A further €106 million in current taxes (2008: €106 million)
was also charged directly to equity.
Income taxes recognized in other comprehensive income for
the years 2009 and 2008 break down as follows:
Income Taxes on Components of Other Comprehensive Income
€ in millions
Before
income
taxes
2009 2008
Income
taxes
After
income
taxes
Before
income
taxes
Income
taxes
After
income
taxes
Cash flow hedges 207 -84 123 181 -32 149
Available-for-sale securities 772 74 846 -10,186 1,332 -8,854
Currency translation adjustments 129 339 468 -1,922 -177 -2,099
Changes in actuarial gains/losses of defined
benefit pension plans and similar obligations -1,500 434 -1,066 3 -81 -78
Companies accounted for under the equity method 23 – 23 245 – 245
Total -369 763 394 -11,679 1,042 -10,637

The preliminary purchase price allocation performed in
connection with the acquisition of the interest in the Yuzhno-
Russkoye gas field has resulted in deferred tax assets of
€3 million and in deferred tax liabilities of €503 million as of
December 31, 2009.
The preliminary purchase price allocation of the acquisition of
the Belgian power plant unit resulted in deferred tax assets of
€49 million and in deferred tax liabilities of €15 million as of
December 31, 2009.
Additional acquisitions in 2009 resulted in the recognition
as of December 31, 2009, of a total of €3 million in deferred
tax assets and €20 million in deferred tax liabilities.
The purchase price allocation finalized in 2009 of the acquisition
in 2008 of Endesa Europa/Viesgo reduced deferred tax
assets by €94 million, from €254 million to €160 million, and
deferred tax liabilities by €115 million, from €572 million to
€457 million.
The purchase price allocations of additional acquisitions
resulted in the recognition on December 31, 2008, of a total
of €6 million in deferred tax assets and €30 million in deferred
tax liabilities.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
The tax loss carryforwards as of the dates indicated are as
follows:
Tax Loss Carryforwards
€ in millions
December 31
2009 2008
Domestic tax loss carryforwards 907 1,377
Foreign tax loss carryforwards 4,968 3,547
Total 5,875 4,924
Since January 1, 2004, domestic tax loss carryforwards can
only be offset against up to 60 percent of taxable income,
subject to a full offset against the first €1 million. This minimum
corporate taxation also applies to trade tax loss carryforwards.
Of the foreign tax loss carryforwards, a significant
portion relates to previous years. No deferred taxes have
been recognized on a total of €2,066 million in tax loss carryforwards
that do not expire (2008: €2,095 million).
No deferred taxes have been recognized on a total of €22 million
in as yet unused tax credits. Of these, €13 million expire
within the next five years, and €9 million after 2014.
89

90 Notes
(11) Personnel-Related Information
Personnel Costs
The following table provides details of personnel costs for
the periods indicated:
Personnel Costs
€ in millions 2009 2008
Wages and salaries 4,322 4,148
Social security contributions 654 642
Pension costs and other employee
benefits 381 340
Pension costs 375 314
Total 5,357 5,130
In 2009, E.ON used a total of 925,282 of its treasury shares
(0.05 percent of the capital stock of E.ON AG) for the issue of
employee shares (2008: 1,138,050 shares or 0.06 percent of
the capital stock of E.ON AG) at an average purchase price of
€20.18 per share (2008: €39.65 per share, purchased on the
market). These shares were sold to employees at preferential
prices between €6.66 and €19.41 (2008: between €10.64 and
€32.18). The costs arising from the granting of these preferential
prices were charged to personnel costs as “Wages and salaries.”
Stock Appreciation Rights of E.ON AG
7th tranche 6th tranche 5th tranche
Date of issuance Jan. 3, 2005 Jan. 2, 2004 Jan. 2, 2003
Term 7 years 7 years 7 years
Blackout period 2 years 2 years 2 years
Price at issuance 1 €20.37 €14.93 €12.62
Level of the Dow Jones STOXX Utilities Index (Price EUR) 268.66 211.58 202.14
Number of participants in year of issuance 357 357 344
Number of SAR issued 2.9 m 2.7 m 2.6 m
Exercise hurdle (minimum percentage by which exercise price
exceeds the price at issuance) 10% 10% 10%
Exercise hurdle (minimum exercise price) 1 €22.41 €16.42 €13.88
Number of subscription rights 1 3 3 3
Maximum gain on exercise of three subscription rights €65.35 €49.05
1 After stock split of August 4, 2008.
Information about the 2008 stock split, as well as on the
changes in the number of treasury shares held by E.ON AG,
can be found in Note 19.
Since the 2003 fiscal year, employees in the U.K. have the
opportunity to purchase E.ON shares through an employee
stock purchase program and to acquire additional bonus
shares. The cost of issuing these bonus shares is also recorded
under personnel costs as part of “Wages and salaries.”
Share-Based Payment
Members of the Board of Management of E.ON AG and certain
executives of E.ON AG and of the market units receive
share-based payment as part of their long-term variable compensation.
Share-based payment can only be granted if the
qualified executive owns a certain minimum number of shares
of E.ON stock, which must be held until maturity or full exercise.
The purpose of such compensation is to reward their contribution
to E.ON’s growth and to further the long-term success
of the Company. This variable compensation component,
comprising a long-term incentive effect along with a certain
element of risk, provides for a sensible linking of the interests
of shareholders and management.

The following discussion includes a report on the E.ON AG
Stock Appreciation Rights plan, which ended in 2005, and on
the E.ON Share Performance Plan, introduced in 2006.
Stock Appreciation Rights of E.ON AG
From 1999 up to and including 2005, E.ON annually granted
virtual stock options (“Stock Appreciation Rights” or “SAR”)
through the E.ON AG Stock Appreciation Rights program. The
remaining outstanding fifth-tranche SAR were exercised in
full until maturity on December 9, 2009. SAR from the sixth and
seventh tranches may still be exercised after the end of the
program, in accordance with the SAR terms and conditions.
SAR can be exercised by eligible executives following the
blackout period within preset exercise windows, provided
that the exercise thresholds have been crossed.
The amount paid to executives when they exercise their SAR
is paid out in cash, and is equal to the difference between the
E.ON AG share price at the time of exercise and the adjusted
underlying share price at issuance, multiplied by the number
of SAR exercised and by the number of subscription rights of
three. The adjustment of the underlying share price and the
introduction of the subscription ratio of three was made necessary
by the E.ON AG stock split on August 4, 2008, in order
to ensure neutrality in value with an unchanged number of SAR.
Beginning with the sixth tranche, a cap on gains on SAR equal
to 100 percent of the underlying price at the time of issuance
was put in place in order to limit the effect of unforeseen
extraordinary increases in the underlying share price.
SAR Program of E.ON AG—Measurement Parameters of the Option Pricing Model
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
In accordance with IFRS 2 measurement criteria, the SAR were
measured by reference to the fair value of the rights as of
December 31, 2009.
A recognized option pricing model is used for measuring the
value of these options. This option pricing model simulates a
large number of different possible developments of the E.ON
share price and the benchmark Dow Jones STOXX Utilities
Index (Price EUR) (Monte Carlo simulation).
A certain exercise behavior is assumed when determining
fair value. Individual exercise rates are defined for each of the
tranches, depending on the price performance of the E.ON
share. Historical volatility and correlations of the E.ON share
price that reflect remaining maturities are used in the calculations.
The risk-free interest rate used for reference is the zero
swap rate for the corresponding remaining maturity. The dividend
yields of the E.ON share are also included in the pricing
model. The E.ON share dividend yield is calculated for each
tranche and maturity based on the Bloomberg consensus estimates.
The annual average of the Xetra closing prices for
E.ON AG shares was €25.51 in 2009. The Xetra closing price for
E.ON AG shares at year-end was €29.23. The Dow Jones STOXX
Utilities Index (Price EUR) closed at 342.49 points.
The following overview contains additional parameters used
for measurement:
7th tranche 6th tranche
Intrinsic value as of December 31, 2009 1 €26.58 €42.90
Fair value as of December 31, 2009 1 €26.82 €38.61
Swap rate 1.85% 1.06%
Volatility of E.ON share 35.88% 39.09%
Dividend yield of E.ON share 5.52% 5.25%
1 For three subscription rights.
91

92 Notes
In 2009, 118,434 SAR of tranche five were exercised on an
ordinary basis. The total gain to holders on exercise was
€5.1 million (2008: €6.0 million). Due to changes in the scope
of consolidation, 1,000 SAR of tranche five are no longer
taken into account. 2,000 SAR of tranche seven expired during
the fiscal year.
The SAR of tranches six and seven were exercisable on
December 31, 2009.
Changes in the E.ON AG SAR Program
E.ON Share Performance Plan
In 2009, virtual shares (“Performance Rights”) were granted
under the fourth tranche of the E.ON Share Performance
Plan, which was introduced in 2006.
E.ON Share Performance Rights
4th
tranche
3rd
tranche 1
2nd
tranche 1
Date of issuance Jan. 1, 2009 Jan. 1, 2008 Jan. 1, 2007
Term 3 years 3 years 3 years
Target value at issuance €27.93 €136.26 €96.52
Number of participants
in year of issuance 581 555 502
Number of Performance
Rights issued 1,425,414 294,623 395,025
Maximum amount paid €83.79 €408.78 €289.56
1 Issued before 2008 stock split.
The provision for the SAR program was €1.0 million as of
the balance sheet date (2008: €6.8 million). The decline in the
value of the rights and the corresponding reduction of the
provision resulted in income of €0.6 million in the 2009 fiscal
year (2008: €10.4 million income). The number of SAR, provisions
for and expenses arising from the E.ON SAR program
have changed as shown in the following table:
7th tranche 6th tranche 5th tranche
SAR outstanding as of December 31, 2007 55,000 28,000 151,551
SAR granted in 2008 – – –
SAR exercised in 2008 29,000 18,000 32,117
SAR expired in 2008 – – –
SAR outstanding as of December 31, 2008 26,000 10,000 119,434
SAR granted in 2009 – – –
SAR exercised in 2009 – – 118,434
SAR expired in 2009 2,000 – –
Changes in scope of consolidation 2009 – – 1,000
SAR outstanding as of December 31, 2009 24,000 10,000 0
Gains on exercise in 2009 – – €5.1 m
Provision as of December 31, 2009 €0.6 m €0.4 m –
Income in 2009 – – €0.6 m
At the end of its three-year term, each Performance Right is
entitled to a cash payout linked to the final E.ON share price
established at that time, as well as to the performance of
the E.ON share price relative to its benchmark, the Dow Jones
STOXX Utilities Index (Total Return EUR). The amount paid
out is equal to the target value at issuance if the E.ON share
price is maintained at the end of the term and the performance
of the E.ON share price matches that of the benchmark.
The maximum amount to be paid out to each participant per
Performance Right is limited to three times the target value
originally set.
60-day average prices are used to determine the target value
at issuance, the final price and the relative performance, in
order to mitigate the effects of incidental, short-lived price
movements.

The calculation of the amount to be paid out takes place at
the same time for all plan participants with effect on the last
day of the term of the tranche. If the performance of the
E.ON share matches that of the index, the amount paid out is
not adjusted; the final share price is paid out. However, if the
E.ON share outperforms the index, the amount paid out is
increased proportionally. If, on the other hand, the E.ON share
underperforms the index, disproportionate deductions are
made. In the case of underperformance by 20 percent or more,
no payment at all takes place.
The plan contains adjustment mechanisms to eliminate the
effect of events such as interim corporate actions. After the
stock split in 2008, adjustment factors were generated for
the second and third tranches to ensure neutrality of value
with an unchanged number of Performance Rights. That is
why it was not necessary to adjust for the stock split the
target values at issuance or the maximum amounts paid out.
E.ON Share Performance Plan—Measurement Parameters of the Option Pricing Model
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
The fair value is determined for the Performance Rights in
accordance with IFRS 2 using a recognized option pricing
model. This model involves the simulation of a large number
of different possible development tracks for the E.ON share
price (taking into account the effects of reinvested dividends
and capital adjustment factors) and the benchmark index
(Monte Carlo simulation). The benchmark index stood at
657.34 points on December 31, 2009. Since payments to all plan
participants take place on a specified date, no assumptions
concerning exercise behavior are made in this plan structure,
and such assumptions are therefore not considered in this
option pricing model. Dividend payments and corporate actions
are taken into account through corresponding factors that
are analogous to those employed by the index provider.
4th tranche 3rd tranche2 2nd tranche1, 2
Intrinsic value as of December 31, 2009 €27.79 €77.11 €90.88
Fair value as of December 31, 2009 €22.43 €73.32 €90.88
Swap rate 1.85% 1.06% –
Dividend yield of E.ON share 5.52% 5.25% –
Volatility of E.ON share 44.51% 34.75% –
Volatility of the Dow Jones STOXX Utilities Index (Total Return EUR) 31.93% 22.12% –
Correlation between the E.ON share price and the
Dow Jones STOXX Utilities Index (Total Return EUR) 0.91 0.86 –
1 Matured on December 31, 2009
2 Issued before the 2008 stock split.
1,425,414 fourth-tranche Performance Rights were granted in
2009. The second tranche matured on December 31, 2009. The
payout for the 370,246 second-tranche Performance Rights
settled at the end of the term on an ordinary basis was set
at €90.88 per Performance Right. As of the balance sheet
date, a liability of 33.6 million, the total amount of the payouts,
was recognized. The payout and elimination of the liability
will take place in the first quarter of 2010. In addition, the cash
amount from 7,127 second- and third-tranche Performance
Rights was paid out during 2009 on an extraordinary basis in
accordance with the terms and conditions of the plan. Total
extraordinary payouts amounted to €0.6 million (2008:
€1.4 million). 9,349 second-, third- and fourth-tranche Performance
Rights expired in the 2009 fiscal year. Due to changes
in the scope of consolidation, 28,988 Performance Rights of
tranches two through four have been removed from the total.
The provision for the plan at year-end amounted to €24.3 million
(2008: €29.2 million). The provision is prorated for the
respective period elapsed of the total three-year term. The
expense for the E.ON Share Performance Plan amounted
to €29.3 million in the 2009 fiscal year (2008: €1.4 million).
93

94 Notes
Changes in the E.ON
Share Performance Plan
(12) Other Information
4th
tranche
3rd
tranche
German Corporate Governance Code
On December 14, 2009, the Board of Management and the
Supervisory Board of E.ON AG made a declaration of compliance
pursuant to Section 161 of the German Stock Corporation
Act (“AktG”). The declaration was made publicly accessible
on the Company’s Web site (www.eon.com).
Fees and Services of the Independent Auditor
2nd
tranche
Performance Rights
outstanding as
of December 31, 2007 – – 391,266
Performance Rights
granted in 2008 – 294,623 –
Settled Performance
Rights in 2008 – – 3,463
Performance Rights
expired in 2008 – 3,379 5,772
Performance Rights
outstanding as
of December 31, 2008 0 291,244 382,031
Performance Rights
granted in 2009 1,425,414 – –
Settled Performance
Rights in 2009 – 446 376,927
Performance Rights
expired in 2009 6,921 1,670 758
Changes in scope of
consolidation 2009 19,604 5,038 4,346
Performance Rights
outstanding as
of December 31, 2009 1,398,889 284,090 0
Cash amount paid out in
2009 – €0.1 m €34.1 m
Provision as of December
31, 2009 €10.4 m €13.9 m –
Expense in 2009 -€10.4 m -€7.5 m -€11.4 m
During 2009 and 2008, the following fees for services provided
by the independent auditor of the Consolidated
Financial Statements, Pricewaterhouse Coopers (“PwC”),
Aktien gesellschaft, Wirtschafts prüfungs gesellschaft,
The third and fourth tranches were not yet payable on an
ordinary basis on the balance sheet date.
Employees
During 2009, the Company employed an average of 91,010
persons (2008: 91,546), not including 2,608 apprentices
(2008: 2,419). The breakdown by segment is shown below:
Employees
(domestic) and by companies in the international PwC
network were recorded as expenses:
Independent Auditor Fees
2009 2008
Central Europe 49,369 43,190
Pan-European Gas 3,693 10,406
U.K. 16,443 17,535
Nordic 5,747 5,880
U.S. Midwest 3,126 3,070
Energy Trading 1,021 828
New Markets 8,483 7,704
Corporate Center 3,128 2,933
Total 91,010 91,546
€ in millions 2009 2008
Financial statement audits 30 32
Domestic 19 21
Other attestation services 29 31
Domestic 22 24
Tax advisory services 2 2
Domestic 1 1
Other services 3 2
Domestic 3 2
Total 64 67
Domestic 45 48

The fees for financial statement audits concern the audit of
the Consolidated Financial Statements and the legally mandated
financial statements of E.ON AG and its affiliates.
Fees for other attestation services concern in particular the
review of the interim IFRS financial statements. Further
included in this item are project-related reviews performed
in the context of the introduction of IT and internal-control
systems, due- diligence services rendered in connection with
acquisitions and disposals, and other mandatory and voluntary
audits.
Fees for tax advisory services primarily include advisory on a
case-by-case basis with regard to the tax treatment of M&A
transactions, ongoing consulting related to the preparation of
(13) Earnings per Share
The computation of basic and diluted earnings per share for
the periods indicated is shown below:
Earnings per Share
€ in millions 2009 2008
Income/Loss (-) from continuing
operations 8,817 1,749
less: Minority interests -249 -338
Income/Loss (-) from continuing operations
(attributable to shareholders of
E.ON AG) 8,568 1,411
Income/Loss (-) from discontinued operations,
net
(attributable to shareholders of E.ON AG) -172 -128
Net income attributable to shareholders
of E.ON AG 8,396 1,283
in €
Earnings per share (attributable to
shareholders of E.ON AG)
from continuing operations 4.50 0.76
from discontinued operations -0.09 -0.07
from net income 4.41 0.69
Weighted-average number of shares outstanding
(in millions) 1,905 1,862
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
tax returns and the review of tax assessments, as well as advisory
on other tax-related issues, both in Germany and abroad.
Fees for other services consist primarily of technical support
in IT and other projects.
Shareholdings and Other Interests
A listing of all shareholdings and other interests of E.ON AG
has been compiled and will be published separately in the
Electronic Federal Gazette (“elektronischer Bundesanzeiger”)
in Germany. That listing indicates the reasons for and methods
of consolidation, as well as those shareholdings for which
the preparation and publication of annual financial statements
and of a corresponding management report under
Sections 264 (3) and 264b HGB, respectively, is not required.
The computation of diluted earnings per share is identical to
that of basic earnings per share because E.ON AG has issued
no potentially dilutive ordinary shares.
95

96 Notes
(14) Goodwill, Intangible Assets and
Property, Plant and Equipment
Goodwill, Intangible Assets and Property, Plant and Equipment
€ in millions
January 1,
2009
Exchange
rate
differences
Acquisition and production costs
Change in
scope of
consolidation
Additions Disposals Transfers
December 31,
2009
Goodwill 20,768 91 -364 14 -75 -125 20,309
Marketing-related intangible assets 48 – – – – – 48
Customer-related intangible assets 2,297 57 39 2 -7 4 2,392
Contract-based intangible assets 4,419 1 2,710 37 -39 -333 6,795
Technology-based intangible assets 693 2 4 77 -52 80 804
Internally generated intangible assets 201 13 -5 19 – 1 229
Intangible assets subject to amortization 7,658 73 2,748 135 -98 -248 10,268
Intangible assets not subject to
amortization 2,456 80 -192 1,750 -2,480 19 1,633
Advance payments on intangible assets 33 – – 51 -10 -22 52
Intangible assets 10,147 153 2,556 1,936 -2,588 -251 11,953
Real estate and leasehold rights 3,086 81 -24 46 -39 -44 3,106
Buildings 9,531 -11 32 127 -111 29 9,597
Technical equipment, plant and machinery 89,418 877 -496 1,677 -882 3,900 94,494
Other equipment, fixtures, furniture and
office equipment 3,055 76 -81 206 -255 -335 2,666
Advance payments and construction
in progress 9,866 197 71 6,460 -39 -4,969 11,586
Property, plant and equipment 114,956 1,220 -498 8,516 -1,326 -1,419 121,449

January 1,
2009
Exchange
rate
differences
Accumulated depreciation
Change in
scope of
consolidation
Additions Disposals Transfers Impairment Reversals
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
December 31,
2009
Net carrying
amounts
December 31,
2009
-3,457 49 0 0 0 0 0 0 -3,408 16,901
-47 – – – – – – – -47 1
-1,130 -43 6 -150 4 2 -120 – -1,431 961
-1,365 -16 7 -180 11 160 -20 8 -1,395 5,400
-529 -4 – -91 50 4 -12 – -582 222
-141 -10 6 -23 – – -6 – -174 55
-3,212 -73 19 -444 65 166 -158 8 -3,629 6,639
-239 -4 – – 181 – -32 12 -82 1,551
0 – – – – – – – 0 52
-3,451 -77 19 -444 246 166 -190 20 -3,711 8,242
-267 -2 11 -28 7 – -3 1 -281 2,825
-4,720 -29 -61 -276 6 140 -10 5 -4,945 4,652
-51,388 -498 427 -2,754 601 16 -71 32 -53,635 40,859
-2,086 -62 61 -187 248 265 – – -1,761 905
-15 -3 – -2 1 – -21 – -40 11,546
-58,476 -594 438 -3,247 863 421 -105 38 -60,662 60,787
97

98 Notes
Goodwill, Intangible Assets and Property, Plant and Equipment
€ in millions
January 1,
2008
Exchange
rate
differences
Acquisition and production costs
Change in
scope of
consolidation
Additions Disposals Transfers
December 31,
2008
Goodwill 17,045 -1,163 6,036 21 -71 -1,100 20,768
Marketing-related intangible assets 48 – – – – – 48
Customer-related intangible assets 2,418 -241 138 1 -1 -18 2,297
Contract-based intangible assets 2,020 -58 2,593 24 -56 -104 4,419
Technology-based intangible assets 599 -18 46 59 -30 37 693
Internally generated intangible assets 229 -54 -3 49 -34 14 201
Intangible assets subject to amortization 5,314 -371 2,774 133 -121 -71 7,658
Intangible assets not subject to
amortization 1,571 -197 480 1,566 -898 -66 2,456
Advance payments on intangible assets 30 1 14 29 -2 -39 33
Intangible assets 6,915 -567 3,268 1,728 -1,021 -176 10,147
Real estate and leasehold rights 3,834 -211 408 64 -36 -973 3,086
Buildings 9,144 -407 1,205 77 -100 -388 9,531
Technical equipment, plant and machinery 82,403 -3,951 10,308 1,806 -546 -602 89,418
Other equipment, fixtures, furniture and
office equipment 3,212 -324 57 274 -137 -27 3,055
Advance payments and construction
in progress 5,672 -579 1,698 6,853 -15 -3,763 9,866
Property, plant and equipment 104,265 -5,472 13,676 9,074 -834 -5,753 114,956

January 1,
2008
Exchange
rate
differences
Accumulated depreciation
Change in
scope of
consolidation
Additions Disposals Transfers Impairment Reversals
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
December 31,
2008
Net carrying
amounts
December 31,
2008
-284 5 -1 0 1 0 -3,178 0 -3,457 17,311
-47 – – – – – – – -47 1
-1,125 161 – -182 – 16 – – -1,130 1,167
-771 58 -455 -106 5 -39 -57 – -1,365 3,054
-448 13 -29 -84 20 – -1 – -529 164
-172 40 – -23 16 – -2 – -141 60
-2,563 272 -484 -395 41 -23 -60 0 -3,212 4,446
-68 9 – – 50 – -230 – -239 2,217
0 – – – – – – – 0 33
-2,631 281 -484 -395 91 -23 -290 0 -3,451 6,696
-257 5 -14 -12 2 17 -8 – -267 2,819
-4,161 185 -859 -291 69 344 -7 – -4,720 4,811
-49,084 1,774 -4,994 -2,545 365 3,195 -99 – -51,388 38,030
-2,194 200 -36 -213 110 47 – – -2,086 969
-17 3 -1 – – – – – -15 9,851
-55,713 2,167 -5,904 -3,061 546 3,603 -114 0 -58,476 56,480
99

100 Notes
a) Goodwill and Other Intangible Assets
Goodwill
During the 2009 and 2008 fiscal years, the carrying amount of
goodwill changed as follows in each of E.ON’s segments:
Changes in Goodwill by Segment
€ in millions
Central
Europe
Pan-
European
Gas U.K. Nordic
IFRS 3 prohibits the amortization of goodwill. Instead, goodwill
is tested for impairment at least annually at the level
of the cash-generating units. Goodwill must also be tested
for impairment at the level of individual cash-generating
units between these annual tests if events or changes in circumstances
indicate that the recoverable amount of a particular
cash-generating unit might be impaired.
To perform the impairment tests, the Company first determines
the fair values less costs to sell of its cash-generating units,
which are calculated based on discounted cash flow methods
and verified through the use of suitable multiples, to the
extent available. Market transactions or valuations by third
parties for similar assets are additionally taken into account.
Valuation is based on the medium-term corporate planning
authorized by the Board of Management. The calculations for
impairment-testing purposes are generally based on a detailed
planning period of five years. In certain justified exceptional
cases a longer detailed planning period of ten years is used
as the calculation basis, especially when that is required under
a regulatory framework or specific regulatory provisions. The
U.S.
Midwest
Energy
Trading
New
Markets
Corporate
Center/
Consolidation
E.ON-
Group
Net carrying amount as of
January 1, 2008 2,474 4,375 4,342 288 2,852 – 2,430 – 16,761
Changes resulting
from acquisitions
and divestments 1 -80 -100 -163 2 – 226 6,101 – 5,986
Impairment charges – – – – -1,515 – -1,663 – -3,178
Other changes 2 -180 -103 -1,027 -61 160 -14 -1,033 – -2,258
Net carrying amount as of
December 31, 2008 2,214 4,172 3,152 229 1,497 212 5,835 0 17,311
Changes resulting
from acquisitions
and divestments 1 273 -373 -63 – – – -262 – -425
Impairment charges – – – – – – – – –
Other changes 2 -24 -34 215 -1 -51 15 -105 – 15
Net carrying amount as of
December 31, 2009 2,463 3,765 3,304 228 1,446 227 5,468 0 16,901
1 The changes resulting from acquisitions and divestments also include effects from the reallocation of goodwill in the course of the creation of the Energy Trading, Climate &
Renewables and Italy market units and from the final allocation in Q2/2009 of the goodwill from the acquisition of the Endesa Europa/Viesgo activities.
2 Other changes include restructuring, transfers, exchange rate differences as well as reclassifications to asset held for sale.
cash flow assumptions extending beyond the detailed planning
period are determined using unit-specific growth rates
that are based on historical analysis and prospective forecasting.
The growth rates for developed market regions used
in 2009 ranged between 1.2 and 3.8 percent (2008: 1.1 and
3.5 percent). The interest rates used for discounting cash flows
in these market regions are calculated using market data
for each cash-generating unit, and as of December 31, 2009,
ranged between 5.8 and 7.9 percent after taxes (2008: 6.0 and
7.8 percent). For Russia, a growth rate of 2.0 percent (2008:
2.0 percent) and a capital cost of 9.4 percent (2008: 9.0 percent),
both on euro basis, were used as the basis for calculations.
The nominal growth rates are derived from long-term
inflation rates, adjusted for unit-specific forecasts of changes
by the respective business units (e.g., regu latory framework,
reinvestment cycles or growth prospects).
The principal assumptions underlying the determination by
management of fair value less costs to sell are the respective
forecasts for commodity market prices, future electricity

and gas prices in the wholesale and retail markets, E.ON’s
investment activity, changes in the regulatory framework, as
well as for rates of growth and capital cost.
Since the fair values less costs to sell and the calculated values
in use both exceeded the corresponding carrying amounts at
each of the cash-generating units, no impairment of goodwill
was required in the context of the 2009 goodwill impairment
tests. The recoverable amount used to determine the impairment
of the regulated business at the U.S. Midwest and Italy
market units was the value in use.
The cash-generating units Italy Non-regulated, U.S. Midwest
Regulated and Russia Generation each had only a small excess
of recoverable amount over carrying amount. The respective
goodwill allocated to each cash-generating unit is €2.2 billion,
$2.1 billion and 62 billion rubles. The respective excesses
amount to €0.4 billion, $0.6 billion and 13.0 billion rubles.
Based on the impairments recognized in 2008 on goodwill at
the Italy Non-regulated cash-generating unit in the amount
of approximately €1.7 billion, and at the U.S. Midwest Regulated
cash-generating unit in the amount of approximately €1.5 billion,
respectively, the corresponding surpluses are very sensitive
to changes in significant parameters, these being the
discount rate and the long-term growth rate.
At the Italy Non-regulated cash-generating unit, whose valuation
was based on a capital cost of 7.6 percent and on a
growth rate of 2.3 percent, a change of more than 0.4 percentage
points in the discount rate or of more than 0.8 percentage
points in the growth rate would result in impairment. At
the U.S. Midwest Regulated cash-generating unit, for which a
capital cost of 6.3 percent and a growth rate of 1.2 percent
were assumed, a change of more than 0.3 or 0.5 percentage
points in local currency in the respective parameters would
likewise result in impairment. At the Russia Generation cashgenerating
unit, an impairment would be triggered by an
increase of more than 0.6 percentage points in the discount
rate or a decrease of more than 1.0 percentage points in the
growth rate (on ruble basis).
Intangible Assets
In 2009, the Company recorded an amortization expense of
€444 million (2008: €395 million). Impairment charges on
intangible assets amounted to €190 million in 2009 (2008:
€290 million).
Reversals of impairments on intangible assets totaled
€20 million in 2009 (2008: €0).
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Intangible assets include emission rights from different
trading systems with a carrying amount of €481 million
(2008: €1,094 million). The lower value was due primarily to
lower market prices and a reduction of inventory.
€62 million in research and development costs as defined by
IAS 38 were expensed in 2009 (2008: €53 million).
Based on the current amount of intangible assets subject to
amortization, the estimated amortization expense for each
of the five succeeding fiscal years is as follows:
Estimated Aggregated
Amortization Expense
€ in millions
2010 471
2011 422
2012 383
2013 307
2014 293
Total 1,876
As acquisitions and disposals occur in the future, actual
amounts may vary.
As of December 31, 2009, intangible assets from exploration
activity had carrying amounts of €448 million (2008: €399 million).
Impairment charges of €26 million (2008: €41 million)
were recognized on these intangible assets.
b) Property, Plant and Equipment
Borrowing costs in the amount of €338 million were capitalized
in 2009 (2008: €182 million) as part of the historical cost
of property, plant and equipment.
In 2009, the Company recorded depreciation of property, plant
and equipment in the amount of €3,247 million (2008: €3,061 million).
Impairment charges were recognized on property, plant
and equipment in the amount of €105 million (2008: €114 million).
A total of €38 million in reversals of impairments on property,
plant and equipment was recognized in 2009 (2008: €0).
In 2009, there were restrictions on disposals involving primarily
land and buildings, as well as technical equipment and machinery,
in the amount of €5,188 million (2008: €5,760 million).
101

102 Notes
Certain power plants, gas storage facilities and supply networks
are utilized under finance leases and capitalized in the
E.ON Consolidated Financial Statements because the economic
ownership of the assets leased is attributable to E.ON.
The property, plant and equipment thus capitalized had the
following carrying amounts as of December 31, 2009:
E.ON as Lessee—Carrying Amounts of Capitalized Lease Assets
€ in millions
(15) Companies Accounted for under the Equity
Method and Other Financial Assets
The following table shows the structure of the companies
accounted for under the equity method and the other financial
assets as of the dates indicated:
Companies Accounted for under the Equity
Method and Other Financial Assets
€ in millions
December 31
2009 2008
Buildings 25 28
Technical equipment, plant and machinery 308 305
Net carrying amount of capitalized lease assets 333 333
The corresponding payment obligations under finance leases
are due as shown below:
E.ON as Lessee—Payment Obligations under Finance Leases
€ in millions
Minimum lease payments Covered interest share Present values
2009 2008 2009 2008 2009 2008
Due within 1 year 63 51 19 19 44 32
Due in 1 to 5 years 147 163 64 63 83 100
Due in more than 5 years 281 294 163 179 118 115
Total 491 508 246 261 245 247
The present value of the minimum lease obligations is reported
primarily under liabilities from leases.
Regarding future obligations under operating leases where
economic ownership is not transferred to E.ON as the lessee,
see Note 27.
E.ON also functions in the capacity of lessor. The lease installments
from operating leases are due as shown in the table
at right:
E.ON as Lessor—Operating Leases
€ in millions 2009 2008
Nominal value of outstanding lease
installments
Due within 1 year 54 51
Due in 1 to 5 years 100 124
Due in more than 5 years 170 189
Total 324 364
See Note 17 for information on receivables from finance leases.
December 31
2009 2008
Companies accounted for under the
equity method 7,342 8,931
Equity investments 5,461 3,806
Non-current securities 3,670 5,017
Total 16,473 17,754

Companies accounted for under the equity method consist
solely of associates and joint ventures, with only a small proportion
of the amount recognized attributable to the latter.
The amount shown for equity investments relates primarily
to the directly held interest of approximately 3.5 percent in
OAO Gazprom.
The amount shown for non-current securities relates primarily
to fixed-income securities.
In 2009, impairment charges on companies accounted for under
the equity method amounted to €62 million (2008: €75 million)
and impairments on other financial assets amounted to
€269 million (2008: €60 million). The carrying amount of other
financial assets with impairment losses was €336 million as
of the end of the fiscal year (2008: €146 million).
€327 million (2008: €1,593 million) in non-current securities
is restricted for the fulfillment of legal insurance obligations
of VKE. The change in this amount is due primarily to a
restructuring of assets out of VKE into the Contractual Trust
Arrangement (CTA) (see Note 31).
Shares in Companies Accounted for under the
Equity Method
The financial information at right summarizes the most
important income statement and balance sheet data for the
companies that are accounted for under the equity method.
(16) Inventories
The following table provides a breakdown of inventories as
of the dates indicated:
Inventories
€ in millions
December 31
2009 2008
Raw materials and supplies 2,258 2,614
Goods purchased for resale 2,110 2,066
Work in progress and finished products 150 94
Total 4,518 4,774
Earnings Data for Companies Accounted
for under the Equity Method
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
€ in millions 2009 2008
Sales 36,037 35,803
Net income/loss 2,761 3,313
Investment income generated from companies accounted for
under the equity method amounted to €919 million in 2009
(2008: €965 million).
Balance Sheet Data for Companies
Accounted for under the Equity Method
€ in millions
The carrying amounts of companies accounted for under the
equity method whose shares are marketable totaled €833 million
in 2009 (2008: €990 million). The fair value of E.ON’s share
in these companies was €870 million (2008: €1,422 million).
Additions of investments in companies accounted for under
the equity method resulted in a total goodwill of €12 million
in 2009 (2008: €9 million).
Investments in associated companies totaling €90 million
(2008: €87 million) were restricted because they were pledged
as collateral for financing as of the balance sheet date.
Raw materials, goods purchased for resale and finished
products are generally valued at average cost.
Write-downs totaled €42 million in 2009 (2008: €13 million).
Reversals of write-downs amounted to €1 million in 2009
(2008: €1 million). The carrying amount of inventories recognized
at net realizable value was €258 million (2008: €138 million).
No inventories have been pledged as collateral.
December 31
2009 2008
Non-current assets 23,142 26,493
Current assets 12,080 16,954
Provisions 6,642 8,601
Liabilities 14,520 17,206
Equity 14,060 17,640
103

104 Notes
(17) Receivables and Other Assets
The following table lists receivables and other assets by
remaining time to maturity as of the dates indicated:
Receivables and Other Assets
€ in millions
As of December 31, 2009, other financial assets include receivables
from owners of minority interests in jointly owned
power plants of €631 million (2008: €687 million) and margin
account deposits for futures trading of €127 million (2008:
€757 million). In addition, based on the provisions of IFRIC 5,
other financial assets include a claim for a refund from the
Swedish Nuclear Waste Fund in the amount of €1,266 million
(2008: €1,157 million) in connection with the decommissioning
of nuclear power plants and nuclear waste disposal. Since
this asset is designated for a particular purpose, E.ON’s access
to it is restricted.
The aging schedule of trade receivables is presented in the
following table:
December 31, 2009 December 31, 2008
Current
Noncurrent
Current
Aging Schedule of Trade Receivables
Noncurrent
Receivables from finance leases 42 580 52 598
Other financial receivables and financial assets 1,687 2,072 2,049 1,853
Financial receivables and other financial assets 1,729 2,652 2,101 2,451
Trade receivables 11,577 – 14,416 –
Receivables from derivative financial instruments 7,556 2,365 10,352 2,840
Other operating assets 3,874 1,023 4,080 949
Trade receivables and other operating assets 23,007 3,388 28,848 3,789
Total 24,736 6,040 30,949 6,240
€ in millions 2009 2008
Total trade receivables 11,577 14,416
Not impaired and not yet due 9,530 12,019
Not impaired and up to 60 days past-due 1,119 1,523
Not impaired and 61 to 90 days past-due 121 219
Not impaired and 91 to 180 days
past-due 309 231
Not impaired and 181 to 360 days
past-due 158 152
Not impaired and over 360 days past-due 48 68
Net value of impaired receivables 292 204
The individual impaired receivables are due from a large
number of retail customers from whom it is unlikely that full
repayment will ever be received. Receivables are monitored
by the various market units.

Valuation allowances for trade receivables have changed as
shown in the following table:
Valuation Allowances for Trade Receivables
€ in millions 2009 2008
Balance as of January 1 -730 -556
Change in scope of consolidation 1 -12
Write-downs -382 -422
Reversals of write-downs 55 103
Disposals 198 45
Other 1 111 112
Balance as of December 31 -747 -730
1 “Other” includes currency translation adjustments.
E.ON as Lessor—Finance Leases
€ in millions
(18) Liquid Funds
The following table provides a breakdown of liquid funds by
original maturity as of the dates indicated:
Liquid Funds
€ in millions
December 31
2009 2008
Securities and fixed-term deposits 1,722 2,125
Current securities with an
original maturity greater than 3 months 1,311 1,347
Fixed-term deposits with an
original maturity greater than 3 months 411 778
Restricted cash and cash equivalents 184 552
Cash and cash equivalents 4,210 3,671
Total 6,116 6,348
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Receivables from finance leases are primarily the result of
certain electricity delivery contracts that must be treated as
leases according to IFRIC 4. The nominal and present values of
the outstanding lease payments have the following due dates:
Gross investment in
finance
lease arrangements
Unrealized interest
income
Present value of minimum
lease payments
2009 2008 2009 2008 2009 2008
Due within 1 year 92 96 50 44 42 52
Due in 1 to 5 years 352 328 148 163 204 165
Due in more than 5 years 785 799 409 366 376 433
Total 1,229 1,223 607 573 622 650
The present value of the outstanding lease payments is
reported under receivables from finance leases.
Restricted cash includes an amount of €6 million (2008:
€29 million) with a maturity greater than three months.
In addition, current securities with an original maturity greater
than three months include €78 million (2008: €380 million)
in securities held by VKE that are restricted for the fulfillment
of legal insurance obligations. The change in this amount is
due primarily to a restructuring of assets out of VKE into the
CTA (see Note 31).
Cash and cash equivalents include €2,869 million (2008:
€1,838 million) in checks, cash on hand and balances in Bundesbank
accounts and at other financial institutions with an
original maturity of less than three months, to the extent
that they are not restricted.
105

106 Notes
(19) Capital Stock
The capital stock is subdivided into 2,001,000,000 registered
ordinary shares with no par value (“no-par-value shares”)
and amounts to €2,001,000,000 (2008: €2,001,000,000). At the
Annual Shareholders Meeting held on April 30, 2008, shareholders
resolved to convert the Company’s shares from bearer
shares to registered shares and to amend the Articles of Incorporation
accordingly. It was further resolved to reapportion
the capital stock in 2008, increasing the capital by €267 million
from corporate funds in a first step. This was followed by a
reapportionment of the capital whereby each existing bearer
share was replaced by three new registered ordinary shares.
This has resulted in a tripling of the shares outstanding.
Pursuant to a resolution from the Annual Shareholders Meeting
of May 6, 2009, the Company is authorized to purchase own
shares until November 5, 2010. The shares purchased, combined
with other treasury shares in the possession of the Company,
or attributable to the Company pursuant to Sections 71a
et seq. AktG, may at no time exceed ten percent of its capital
stock. The Board of Management was authorized at the aforementioned
Annual Shareholders Meeting to cancel any shares
thus acquired without requiring a separate shareholder resolution
for the cancellation or its implementation. The total
number of outstanding shares as of December 31, 2009, was
1,905,456,817 (2008: 1,904,530,366). As of December 31, 2009,
E.ON AG and one of its subsidiaries held a total of 95,543,183
treasury shares (December 31, 2008: 96,469,634) having a consolidated
book value of €3,530 million (equivalent to 4.77 percent
or €95,543,183 of the capital stock). 925,282 treasury
shares were used for the employee stock purchase program
and distributed to employees in 2009 (2008: 1,138,050 shares
purchased on the market). See also Note 11 for information on
the distribution of shares under the employee stock purchase
program. An additional 1,169 treasury shares (2008: 941 shares)
were also distributed to employees.
The Company has further been authorized by the Annual
Shareholders Meeting to buy shares using put or call options,
or a combination of both. When derivatives in the form of
put or call options, or a combination of both, are used to acquire
shares, the option transactions must be conducted at market
terms with a financial institution or on the market. No shares
were acquired in 2009 using this purchase model.
Authorized Capital
Pursuant to the shareholder resolution adopted at the Annual
Shareholders Meeting on April 27, 2005, the Board of Management
is authorized, subject to the Supervisory Board’s approval,
to increase the Company’s capital stock by up to €540 million
(Authorized Capital pursuant to Sections 202 et seq. AktG)
through one or more issuances of new registered ordinary
shares in return for contributions in cash and/or in kind (with
the option to exclude shareholders’ subscription rights). This
capital increase is authorized until April 27, 2010. Subject to
the Supervisory Board’s approval, the Board of Management
is authorized to exclude shareholders’ subscription rights.

Because the next Annual Shareholders Meeting will not take
place until after the expiration of this authorized capital,
the Annual Shareholders Meeting of May 6, 2009, resolved as
follows: Effective April 28, 2010, the Board of Management
is authorized, subject to the Supervisory Board’s approval, to
increase the Company’s capital stock by up to €460 million
(Authorized Capital pursuant to Sections 202 et seq. AktG)
through one or more issuances of new registered ordinary
shares in return for contributions in cash and/or in kind (with
the option to exclude shareholders’ subscription rights). This
capital increase is authorized until May 5, 2014. Subject to
the Supervisory Board’s approval, the Board of Management
is authorized to exclude shareholders’ subscription rights.
Conditional Capital
At the Annual Shareholders Meeting of May 6, 2009, shareholders
approved two conditional capital increases (with the
option to exclude shareholders’ subscription rights) in the
amount of €175.0 million each (“Conditional Capital I and II”),
which are authorized until May 5, 2014. The conditional capital
increases will be implemented only to the extent required to
fulfill the obligations arising on the exercise by holders of
conversion and option rights, and those arising from compliance
with the mandatory conversion of bonds with conversion
or option rights, participation rights and income bonds
that have been issued or guaranteed by E.ON AG or by an
E.ON AG group company as defined by Section 18 AktG, and
to the extent that no cash settlement has been granted in
lieu of conversion and no E.ON AG treasury shares or shares
of another listed company have been used to service the
rights. The conditional capital increases have not been used.
Voting Rights
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
For the 2009 fiscal year, the following disclosure about voting
rights has been made pursuant to Section 21 (1) of the German
Securities Trading Act (“WpHG”):
On December 7, 2009, BlackRock Inc., New York, United States,
informed us pursuant to Section 21 (1) WpHG that the
percentage of voting rights held by Black Rock Financial
Management Inc., New York, United States, in the form of
shares of E.ON AG, Düsseldorf, Germany, ISIN: DE0007614406,
WKN: 761440, exceeded the threshold of 3 percent on
December 1, 2009, and that it stands at 4.68 percent (equivalent
to 93,552,795 votes) as of that date. The aforementioned
voting rights are attributed to BlackRock Inc. pursuant to
Section 22 (1), sentence 1, no. 6, WpHG.
107

108 Notes
(20) Additional Paid-in Capital
As of December 31, 2009, additional paid-in capital stands
at €13,747 million (2008: €13,741 million). Additional paid-in
capital in 2009 increased primarily as a result of the distribution
of shares under the employee stock purchase program.
(21) Retained Earnings
The following table breaks down the E.ON Group’s retained
earnings as of the dates indicated:
Retained Earnings
€ in millions
December 31
2009 2008
Legal reserves 45 45
Other retained earnings 26,533 22,136
Total 26,578 22,181
Under German securities law, E.ON AG shareholders may
receive distributions from the retained earnings, and generally
also from the net income of E.ON AG, as respectively reported
in accordance with the German Commercial Code.
(22) Changes in Other Comprehensive Income
In October 2008, E.ON and Gazprom reached an understanding
on the acquisition by E.ON of an interest in the Siberian gas
field Yuzhno-Russkoye. In return for this interest, Gazprom
received approximately 3 percent of the Gazprom shares indirectly
held by E.ON. €1,818 million was reclassified in connection
with the disposal of the Gazprom shares and recognized
in income. Additional reclassification adjustments from available-for-sale
securities recognized in income resulted primarily
from the sale of securities at the Central Europe market unit.
As of December 31, 2009, German-GAAP retained earnings
totaled €1,810 million (2008: €834 million). Of these, legal
reserves of €45 million (2008: €45 million) were restricted pursuant
to Section 150 (3) and (4) AktG, and reserves for treasury
shares of €214 million (2008: €233 million) were restricted
pursuant to Section 272 (4) HGB on December 31, 2009. Accordingly,
retained earnings in the amount of €1,551 million (2008:
€556 million) are available in principle for dividend payments.
A proposal to distribute a cash dividend for 2009 of €1.50 per
share will be submitted to the Annual Shareholders Meeting.
A cash dividend of €1.50 per share was paid for 2008. Based
on E.ON AG’s 2009 year-end closing share price, the dividend
yield is 5.1 percent. Based on a €1.50 dividend, the total profit
distribution is €2,858 million.
The effect of these reclassifications was offset by the change
in unrealized gains on available-for-sale securities, which
was attributable primarily to the increase of €2,324 million
before deferred taxes in the fair value of the remainder of
the interest in Gazprom.
Components of other comprehensive income in the amount
of €22 million (2008: €1,039 million) are attributed to assets
classified as held for sale.

(23) Minority Interests
Minority Interests
€ in millions
December 31
2009 2008
Central Europe 2,557 2,782
Pan-European Gas 51 168
U.K. 62 59
Nordic 68 81
U.S. Midwest 27 21
Energy Trading – –
New Markets 767 805
Corporate Center/Consolidation 75 44
Total 3,607 3,960
(24) Provisions for Pensions and Similar
Obligations
The retirement benefit obligations toward the employees
of the E.ON Group, which amounted to €16.1 billion, were
covered by plan assets having a fair value of €13.2 billion as
of December 31, 2009. This corresponds to a funded status
of 82 percent.
In addition to the reported plan assets, Versorgungskasse
Energie (“VKE”) administers another pension fund holding
assets of €0.5 billion (2008: €2.3 billion) that do not constitute
Four-Year History of the Funded Status
€ in millions
Description of the Benefit Obligations
In addition to their entitlements under government retirement
systems and the income from private retirement planning,
most E.ON Group employees are also covered by occupational
retirement plans.
Both defined benefit plans and defined contribution plans
are in place at E.ON. The majority of the benefit obligations
reported consists of obligations of E.ON Group companies
in which the retirement pension is calculated either on the
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Minority interests as of the dates indicated are attributable
to the segments as shown in the table at left.
The decrease in minority interests in 2009 resulted primarily
from the 35-percent increase of the stake in SNET France to
100 percent.
plan assets under IAS 19 but which nevertheless are almost
exclusively intended for the coverage of employee retirement
benefits in the Central Europe market unit (see Note 31).
In recent years, the funded status, measured as the difference
between the defined benefit obligation for the pension units
and the fair value of plan assets, has changed as follows:
December 31
2009 2008 2007 2006
Defined benefit obligation 16,087 14,096 15,936 17,306
Fair value of plan assets -13,205 -11,034 -13,056 -13,342
Funded status 2,882 3,062 2,880 3,964
salaries earned during the most recent years of service
(final-pay arrangements) or on a scale of fixed amounts.
In order to avoid exposure to future risks from occupational
retirement plans, newly designed pension plans were introduced
at the major German and foreign E.ON Group companies
between 1998 and 2009. Virtually all new hires at the
109

110 Notes
German market units, as well as at the U.K., U.S. Midwest and
Spain market units, are now covered by benefit plans whose
future risks can be calculated and controlled. In addition, the
final-pay arrangements for existing employees at the Group’s
German companies were largely converted into a newly
designed benefit plan beginning in 2004.
The provisions for pensions and similar obligations also include
minor provisions for obligations from the assumption of
costs for post-employment health care benefits, which are
granted primarily in the United States and in Spain.
Changes in the Defined Benefit Obligation
€ in millions
In pure defined contribution plans, the Company discharges
its obligations toward employees when it pays agreed contribution
amounts into funds managed by external insurers or
similar institutions.
Changes in the Benefit Obligations
The following table shows the changes in the present value
of the defined benefit obligation for the periods indicated:
2009 2008
Total Domestic Foreign Total Domestic Foreign
Defined benefit obligation as of January 1 14,096 8,047 6,049 15,936 7,963 7,973
Employer service cost 211 136 75 220 138 82
Interest cost 842 450 392 866 425 441
Change in scope of consolidation -28 -66 38 438 1 437
Past service cost 7 -2 9 27 6 21
Actuarial gains (-)/losses 1,543 249 1,294 -1,020 77 -1,097
Exchange rate differences 309 – 309 -1,422 – -1,422
Employee contributions 15 – 15 24 – 24
Pensions paid -874 -470 -404 -848 -443 -405
Curtailments -2 – -2 -2 – -2
Other -32 -59 27 -123 -120 -3
Defined benefit obligation as of December 31 16,087 8,285 7,802 14,096 8,047 6,049
Foreign benefit obligations relate almost entirely to the benefit
plans at the market units U.K. (2009: €6,321 million; 2008:
€4,637 million), U.S. Midwest (2009: €916 million; 2008: €911 million)
and Spain (2009: €373 million; 2008: €355 million). The
portion of the entire benefit obligation allocated to postemployment
health care benefits amounted to €166 million
(2008: €161 million).
The “Other” line reflects primarily the reclassification of
defined benefit obligations as liabilities associated with
assets held for sale.
Actuarial losses in 2009 are attributable primarily to the
decrease in the discount rate and to the higher salary and
pension increase rates at the U.K. market unit, which combined
to produce a relative increase in the defined benefit
obligation. In Germany, the actuarial losses are due primarily
to the decrease in the discount rate.

Actuarial values of the pension obligations of the German, U.K.
and U.S. subsidiaries were computed based on the following
average assumptions for each region:
Actuarial Assumptions
Percentages
Other company-specific actuarial assumptions, including
employee fluctuation, have also been included in the computations.
To measure the E.ON Group’s occupational pension obligations
for accounting purposes, the Company has employed the
current versions of the biometric tables recognized in each
respective country for the calculation of pension obligations.
The discount rate assumptions used by E.ON reflect the
region-specific rates available at the end of the respective
fiscal year for high-quality fixed-rate corporate bonds with
a duration corresponding to the average period to maturity
of the pension benefit obligations.
At the E.ON Group, a uniform increase or decrease of 0.5 percentage
points in the discount rates would change the defined
benefit obligation by -€1,034 million and +€1,150 million, respectively,
as of December 31, 2009.
Description of Plan Assets
Defined benefit pension plans in the Group’s companies, be
they within or outside of Germany, are mostly financed through
the accumulation of plan assets in specially created pension
vehicles that legally are distinct from the Company.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
December 31, 2009 December 31, 2008
Germany U.K. U.S. Germany U.K. U.S.
Discount rate 5.50 5.70 6.10 5.75 6.40 6.05
Salary increase rate 2.75 4.00 5.25 2.75 3.00 5.25
Expected rate of return on plan assets 4.50-4.70 6.10 7.75 4.50-5.10 5.40 8.25
Pension increase rate 1 2.00 3.30 – 2.00 2.50 –
Health care cost trend – – 8.00 – – 8.00
1 The pension increase rate for Germany applies to eligible individuals not subject to a one-percent pension increase rate.
Under the Contractual Trust Arrangement (CTA) established
for the German subsidiaries, plan assets totaling €6,481 million
(2008: €4,847 million) were administered by a trust, E.ON
Pension Trust e.V., on a fiduciary basis. A restructuring of investments
out of the VKE fund into the CTA increased domestic
plan assets by €1.7 billion in 2009. The remainder of the domestic
plan assets in the amount of €298 million (2008: €300 million)
is held primarily by pension funds in the Central Europe
market unit.
The foreign plan assets, which totaled €6,426 million in 2009
(2008: €5,887 million) and are managed mostly by independent
pension trusts, are dedicated primarily to the financing
of the pension plans at the U.K. and U.S. Midwest market
units. Plan assets of €5,575 million (2008: €5,132 million) are
attributable to the U.K. market unit. The pension assets of
the Spain market unit, totaling €282 million (2008: €287 million),
consist almost entirely of qualifying insurance policies, which
constitute plan assets under IAS 19.
111

112 Notes
The changes in the fair value of the plan assets covering the
benefit obligation for defined benefit pension plans are shown
in the following table:
Changes in Plan Assets
€ in millions
The €0.5 billion (2008: €2.3 billion) in non-current securities
and liquid funds administered by VKE are not included in the
determination of the funded status as of December 31, 2009,
since they do not constitute plan assets under IAS 19. However,
these assets, which are primarily dedicated to the coverage
of the Central Europe market unit’s benefit obligations, do
additionally have to be taken into consideration for a comprehensive
evaluation of the funded status of the E.ON Group’s
benefit obligations.
The principal investment objective for the pension plan assets
is to provide full coverage of benefit obligations at all times
for the payments due under the corresponding pension plans.
Plan assets include virtually no owner-occupied real estate or
equity or debt instruments issued by E.ON Group companies.
To implement the investment objective, the E.ON Group generally
pursues a liability-driven investment (LDI) approach
that takes into account the structure of the benefit obligations.
This long-term LDI strategy seeks to manage the funded status,
with the result that any changes in the defined benefit obligation,
especially those caused by fluctuating inflation and
Classification of Plan Assets
Percentages
2009 2008
Total Domestic Foreign Total Domestic Foreign
Fair value of plan assets as of January 1 11,034 5,147 5,887 13,056 5,522 7,534
Expected return on plan assets 614 270 344 721 295 426
Employer contributions 1,913 1,707 206 204 7 197
Employee contributions 15 – 15 24 – 24
Change in scope of consolidation 22 – 22 284 – 284
Actuarial gains/losses (-) 43 67 -24 -1,008 -352 -656
Exchange rate differences 357 – 357 -1,527 – -1,527
Pensions paid -762 -367 -395 -724 -326 -398
Settlements -1 – -1 0 – –
Other -30 -45 15 4 1 3
Fair value of plan assets as of December 31 13,205 6,779 6,426 11,034 5,147 5,887
interest rates are, to a certain degree, covered by simultaneous
corresponding changes in the fair value of plan assets. The
LDI strategy may also involve the use of derivatives (e.g.,
interest rate swaps and inflation swaps). In order to improve
the funded status of the E.ON Group as a whole, a portion of
the plan assets will also be invested in a diversified portfolio
of asset classes that are expected to provide for long-term
returns in excess of those of fixed-income investments.
The determination of the target portfolio structure for the
individual plan assets is based on regular asset-liability studies.
In these studies, the target portfolio structure is reviewed
under consideration of existing investment principles, the
current level of financing of existing benefit obligations, the
condition of the capital markets and the structure of the
benefit obligations developments, and is adjusted as necessary.
The expected long-term returns for the individual plan
assets are derived from the portfolio structure targeted and
from the expected long-term returns for the individual asset
classes in the asset-liability studies.
Plan assets were invested in the asset classes shown in the
following table as of the dates indicated:
December 31, 2009 December 31, 2008
Total Domestic Foreign Total Domestic Foreign
Equity securities 17 13 21 11 6 16
Debt securities 64 66 62 62 52 70
Real estate 8 11 5 10 13 8
Other (primarily money market investments) 11 10 12 17 29 6

Provisions for Pensions and Similar Obligations
The E.ON Group’s recognized net obligation is derived from the
difference between the defined benefit obligation and the
fair value of plan assets, adjusted for unrecognized past service
cost, and is determined as shown in the following table:
Derivation of the Provisions for Pensions and Similar Obligations
€ in millions
The decrease in the recognized net obligation as of December
31, 2009, is attributable primarily to the funding of plan
assets. This has more than offset the actuarial losses that
resulted primarily from the decrease in the discount rates
affecting E.ON’s German subsidiaries and those at the U.K.
market unit, and from the increase in the salary and pension
increase rates at the U.K. market unit.
Contributions and Pension Payments
In 2009, E.ON made employer contributions to plan assets
totaling €1,913 million (2008: €204 million) to fund existing
defined benefit obligations. This includes the funds transferred
from VKE into the CTA. Given the high level of financing
of the defined benefit obligations at the German subsidiaries
(taking into account the pension funds held by VKE),
no significant additional employer contributions were paid
into the German plan assets during 2009.
For 2010, it is expected that overall employer contributions to
plan assets will amount to a total of €224 million and primarily
involve the funding of new and existing benefit obligations
relating exclusively to foreign companies.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Pension payments to cover defined benefit obligations totaled
€874 million in 2009 (2008: €848 million). Prospective pension
payments existing as of December 31, 2009, for the next ten
years are shown in the following table:
Prospective Pension Payments
December 31
2009 2008
Defined benefit obligation—fully or partially funded by plan assets 15,715 13,751
Fair value of plan assets -13,205 -11,034
Defined benefit obligation—unfunded plans 372 345
Funded status 2,882 3,062
Unrecognized past service cost -10 -10
Net amount recognized 2,872 3,052
Operating receivables -12 -507
Provisions for pensions and similar obligations 2,884 3,559
€ in millions Total Domestic Foreign
2010 856 468 388
2011 872 488 384
2012 888 494 394
2013 908 503 405
2014 927 511 416
2015–2019 4,973 2,733 2,240
Total 9,424 5,197 4,227
113

114 Notes
Pension Cost
The net periodic cost for defined benefit pension plans
included in the provisions for pensions and similar obligations
is shown in the table below:
Net Periodic Pension Cost
€ in millions
Actuarial gains and losses are accrued and recognized in full.
They are reported outside of the income statement as part of
equity in the Statements of Recognized Income and Expenses.
The actual return on plan assets was a gain of €657 million
in 2009 (2008: €287 million loss).
In addition to the total net periodic pension cost, an amount
of €71 million in fixed contributions to external insurers or
similar institutions was paid in 2009 (2008: €64 million) for
pure defined contribution pension plans.
The total net periodic pension cost shown includes an amount
of €12 million in 2009 (2008: €11 million) for health care benefits.
A one-percentage-point increase or decrease in the
assumed health care cost trend rate would affect the interest
and service components and result in a change in net
periodic pension cost of +€0.6 million or -€0.5 million (2008:
+€0.4 million or -€0.4 million), respectively. The corresponding
accumulated post-employment benefit obligation would
change by +€6.9 million or -€6.0 million (2008: +€4.8 million or
-€4.3 million), respectively.
2009 2008
Total Domestic Foreign Total Domestic Foreign
Employer service cost 211 136 75 220 138 82
Interest cost 842 450 392 866 425 441
Expected return on plan assets -614 -270 -344 -721 -295 -426
Effects of curtailments or effects of settlements -1 – -1 -2 – -2
Recognized past service cost 7 -2 9 20 6 14
Total 445 314 131 383 274 109
Experience Adjustments
Percentages
The changes in actuarial gains and losses recognized in equity
(including the actuarial gains and losses in the benefit obligations
that were already reported on the balance sheet as
“Liabilities associated with assets held for sale” or which have
been reclassified to that line item and those of the companies
accounted for under the equity method) are shown in the
following table:
Accumulated Actuarial Gains and
Losses Recognized in Equity
€ in millions 2009 2008
Accumulated actuarial gains (+)
and losses (-) recognized in equity
as of January 1 1,638 1,633
Recognition in equity of current-year
actuarial gains (+) and losses (-) -1,500 5
Accumulated actuarial gains (+)
and losses (-) recognized in equity
as of December 31 138 1,638
In the years 2006 through 2009, the following experience
adjustments were made to the present value of all defined
benefit obligations and to the fair value of plan assets:
December 31
2009 2008 2007 2006
Experience adjustments to the amount of the benefit obligation 0.26 1.61 1.22 0.73
Experience adjustments to the value of plan assets 0.23 -9.01 -0.50 -0.22

The experience adjustments reflect the effects on the benefit
obligations and plan assets at the E.ON Group, which result
from differences between the actual changes in these amounts
from the assumptions made with respect to these changes
at the beginning of the fiscal year. In the measurement of the
(25) Miscellaneous Provisions
The following table lists the miscellaneous provisions as of
the dates indicated:
Miscellaneous Provisions
€ in millions
The changes in the miscellaneous provisions are shown in
the table below:
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
December 31, 2009 December 31, 2008
Current
Noncurrent
Current
Noncurrent
Non-contractual obligations for nuclear waste management 206 8,901 127 9,138
Contractual obligations for nuclear waste management 217 4,160 161 3,931
Personnel obligations 650 711 633 716
Other asset retirement obligations 319 1,246 290 1,193
Supplier-related obligations 361 388 309 320
Customer-related obligations 551 136 458 141
Environmental remediation and similar obligations 68 523 45 557
Other 2,343 2,743 2,237 3,202
Total 4,715 18,808 4,260 19,198
Changes in Miscellaneous Provisions
€ in millions
Jan. 1,
2009
Exchange
rate
differences
Change in
scope of
consolidation
Accretion Additions
benefit obligations, these include the development of salary
increases and of other measures relevant in the determination
of the benefit obligations, increases in pensions, employee
fluctuation and biometric data such as death and disability.
Utilization
Reclassifications
Reversals
Changes
in
estimates
Dec. 31,
2009
Non-contractual obligations
for nuclear waste
management 9,265 51 – 483 26 -13 -96 – -609 9,107
Contractual obligations
for nuclear waste
management 4,092 29 – 220 64 -240 96 – 116 4,377
Personnel obligations 1,349 – -12 3 857 -777 -20 -39 – 1,361
Other asset retirement
obligations 1,483 14 3 48 65 -15 -36 – 3 1,565
Supplier-related
obligations 629 5 -7 15 475 -245 -25 -98 – 749
Customer-related
obligations 599 3 21 6 460 -311 37 -128 – 687
Environmental remediation
and similar
obligations 602 -1 3 17 26 -27 -5 -24 – 591
Other 5,439 20 3 38 1,602 -1,669 -7 -341 1 5,086
Total 23,458 121 11 830 3,575 -3,297 -56 -630 -489 23,523
115

116 Notes
The accretion expense resulting from the changes in provisions
is shown in the financial results (see Note 9).
The interest rates applied for the nuclear power segment,
calculated on a country-specific basis, were 5.2 percent as of
December 31, 2009, (2008: 5.5 percent) in Germany and 3.0 percent
(2008: 3.0 percent) in Sweden. For the other provision
items, the interest rates used ranged from 1.2 percent to 4.3 percent,
depending on maturity (2008: 1.7 percent to 4.4 percent).
Provisions for Non-Contractual Nuclear Waste
Management Obligations
The provisions based on German and Swedish nuclear power
legislation totaling €9.1 billion comprise all those nuclear obligations
relating to the disposal of spent nuclear fuel rods and
low-level nuclear waste and to the retirement and decommissioning
of nuclear power plant components that are determined
on the basis of external studies and cost estimates.
The provisions are classified primarily as non-current provisions
and measured at their settlement amounts, discounted
to the balance sheet date.
The asset retirement obligations recognized for non-contractual
nuclear obligations include the anticipated costs of runout
operation of the facility, dismantling costs, and the cost
of removal and disposal of the nuclear components of the
nuclear power plant.
Additionally included in the disposal of spent nuclear fuel rods
are costs for transports to the final storage facility and the
cost of proper conditioning prior to final storage, including
the necessary containers.
The decommissioning costs and the cost of disposal of spent
nuclear fuel rods and low-level nuclear waste also respectively
include the actual final storage costs. The cost estimates used
to determine the provision amounts are all based on studies
performed by external specialists and are updated annually.
Measurement of the provisions takes into account the influencing
factors agreed in the understanding reached between
the German government and the country’s major power utilities
on June 14, 2000, and signed on June 11, 2001. Final storage
costs consist mainly of investment and operating costs
for the planned final storage facilities Gorleben and Konrad
based on Germany’s ordinance on advance payments for
the establishment of facilities for the safe custody and final
storage of radioactive wastes in the country (“Endlagervorausleistungsverordnung”)
and on data from the German Federal
Office for Radiation Protection (“Bundesamt für Strahlenschutz”).
Advance payments remitted to the Bundes amt für
Strahlenschutz in the amount of €803 million (2008: €789 million)
have been deducted from the provisions. These payments
are made each year based on the amount spent by the
Bundes amt für Strahlenschutz on the construction of the
final storage facilities Gorleben and Konrad.
Changes in estimates and reclassifications to provisions for
contractual waste management obligations reduced provisions
in 2009 by €538 million and €96 million, respectively, at the
Central Europe market unit. The Nordic market unit recorded
a decrease of €71 million as a result of changes in estimates.
Provisions for Contractual Nuclear Waste Management
Obligations
The provisions based on German and Swedish nuclear power
legislation totaling €4.4 billion comprise all those contractual
nuclear obligations relating to the disposal of spent nuclear
fuel rods and low-level nuclear waste and to the retirement
and decommissioning of nuclear power plant components
that are valued at amounts firmly specified in legally binding
civil agreements.
Most of the provisions are classified as non-current provisions
and measured at their settlement amounts, discounted to
the balance sheet date.

Advance payments made to other waste management companies
in the amount of €32 million (2008: €55 million) have
been deducted from the provisions attributed to Germany.
The advance payments relate to the delivery of interim storage
containers.
Concerning the disposal of spent nuclear fuel rods, the obligations
recognized in the provisions comprise the contractual
costs of finalizing reprocessing and the associated return
of waste with subsequent interim storage at Gorleben and
Ahaus, as well as costs incurred for interim on-site storage,
including the necessary interim storage containers, arising
from the “direct permanent storage” path. The provisions also
include the contractual costs of decommissioning and the
conditioning of low-level radioactive waste.
Changes in estimates in 2009 reduced provisions by €15 million
at the Central Europe market unit. The Nordic market unit
recorded an increase of €131 million as a result of changes in
estimates.
Personnel Obligations
Provisions for personnel costs primarily cover provisions for
early retirement benefits, performance-based compensation
components, anniversary obligations and other deferred personnel
costs.
Provisions for Other Asset Retirement Obligations
The provisions for other asset retirement obligations consist
of obligations for conventional and renewable-energy power
plants, including the conventional plant components in the
nuclear power segment, that are based on legally binding civil
agreements and public regulations. Also reported here are
provisions for environmental improvements at opencast mining
and gas storage facilities and the dismantling of installed
infrastructure.
Supplier-Related Obligations
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Provisions for supplier-related liabilities consist primarily of
provisions for potential losses on open purchase contracts.
Customer-Related Obligations
Provisions for customer-related liabilities consist primarily of
potential losses on open sales contracts and of provisions for
rebates.
Environmental Remediation and Similar
Obligations
Provisions for environmental remediation refer primarily to
redevelopment and water protection measures and to the
rehabilitation of contaminated sites. Also included here are
provisions for other environmental improvement measures
and for land reclamation obligations at mining sites.
Other
The other miscellaneous provisions consist primarily of provisions
from the electricity and gas business, including the provision
established in previous years for the risk of retroactive
application of lower network charges resulting from the regulation
of network charges in Germany. Further included here
are provisions for potential obligations arising from tax-related
interest expenses and from taxes other than income taxes, as
well as for a variety of potential settlement obligations.
117

118 Notes
(26) Liabilities
The following table provides a breakdown of liabilities as of
the dates indicated:
Liabilities
€ in millions
Financial Liabilities
Current
The following is a description of the E.ON Group’s significant
credit arrangements and debt issuance programs. Included
under “Bonds” are the bonds currently outstanding, including
those issued under the Debt Issuance Program. None of the
debt outstanding was in default at any time during the 2009
fiscal year.
Corporate Center
Covenants
The financing activities of E.ON AG and E.ON International
Finance B.V. (“EIF”), Rotterdam, The Netherlands, involve the
use of covenants consisting primarily of change-of-control
clauses, negative pledges, pari-passu clauses and cross-default
clauses, each referring to a restricted set of significant circumstances.
Financial covenants, i.e., covenants linked to financial
ratios, are not employed.
December 31, 2009 December 31, 2008
Noncurrent
Total Current
Noncurrent
Total
Financial liabilities 7,120 30,657 37,777 16,022 25,036 41,058
Trade payables 4,635 – 4,635 5,938 – 5,938
Capital expenditure grants 83 262 345 40 305 345
Construction grants from energy consumers 322 2,958 3,280 313 3,175 3,488
Liabilities from derivatives 7,307 2,885 10,192 9,645 3,994 13,639
Advance payments 497 239 736 482 344 826
Other operating liabilities 10,255 1,506 11,761 11,952 1,935 13,887
Trade payables and other operating liabilities 23,099 7,850 30,949 28,370 9,753 38,123
Total 30,219 38,507 68,726 44,392 34,789 79,181
€35 Billion Debt Issuance Program
The €35 billion Debt Issuance Program allows E.ON AG and EIF,
under the unconditional guarantee of E.ON AG, to issue from
time to time debt instruments through public and private placements
to investors. The program was extended for another
year as planned in December 2009, and on that occasion, the
maximum issuance volume allowed under the program was
increased from €30 billion to €35 billion.

At year-end 2009, the following EIF bonds were outstanding:
Major Bond Issues of E.ON International Finance B.V. 1
Additionally outstanding as of December 31, 2009, were private
placements with a total volume of approximately €2.5 billion,
as well as promissory notes with a total volume of approximately
€1.4 billion.
€10 Billion and $10 Billion Commercial Paper
Programs
The euro commercial paper program in the amount of €10 billion
allows E.ON AG and EIF (under the unconditional guarantee
of E.ON AG) to issue from time to time commercial paper
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Volume issued in the
respective currency Initial term Repayment Coupon
EUR 1,000 million 2 years Nov 2010 4.750%
CHF 200 million 3 years Dec 2010 3.000%
CHF 500 million 2 years Feb 2011 2.000%
SEK 1,100 million 2 years May 2011 3 mth STIB+95
EUR 750 million 3 years Sep 2011 5.000%
EUR 750 million 2.5 years Nov 2011 2.500%
GBP 500 million 10 years May 2012 6.375%
USD 300 million 3 years June 2012 3.125%
CHF 250 million 2 4 years Sep 2012 3.250%
EUR 1,750 million 5 years Oct 2012 5.125%
CHF 250 million 4 years Dec 2012 3.875%
EUR 750 million 4 years Mar 2013 4.125%
EUR 1,500 million 5 years May 2013 5.125%
CHF 300 million 5 years May 2013 3.625%
GBP 350 million 5 years Jan 2014 5.125%
EUR 1,750 million 5 years Jan 2014 4.875%
CHF 525 million 3 5 years Feb 2014 3.375%
EUR 1,000 million 6 years June 2014 5.250%
CHF 225 million 7 years Dec 2014 3.250%
EUR 1,250 million 7 years Sep 2015 5.250%
EUR 1,500 million 7 years Jan 2016 5.500%
EUR 900 million 15 years May 2017 6.375%
EUR 2,375 million 4 10 years Oct 2017 5.500%
USD 2,000 million 5 10 years Apr 2018 5.800%
GBP 850 million 6 12 years Oct 2019 6.000%
EUR 1,400 million 7 12 years May 2020 5.750%
GBP 975 million 8 30 years June 2032 6.375%
GBP 900 million 30 years Oct 2037 5.875%
USD 1,000 million 5 30 years Apr 2038 6.650%
GBP 700 million 30 years Jan 2039 6.750%
1 Listing: All bonds are listed in Luxembourg with the exception of the CHF-denominated bonds, which are listed on the SWX Swiss Exchange, and the two Rule 144A/Regulation
S USD bonds, which are unlisted.
2 The volume of this issue was raised from originally CHF 200 million to CHF 250 million.
3 The volume of this issue was raised from originally CHF 400 million to CHF 525 million.
4 The volume of this issue was raised in two steps from originally EUR 1,750 million to EUR 2,375 million.
5 Rule 144A/Regulation S bond
6 The volume of this issue was raised from originally GBP 600 million to GBP 850 million.
7 The volume of this issue was raised from originally EUR 1,000 million to EUR 1,400 million.
8 The volume of this issue was raised from originally GBP 850 million to GBP 975 million.
with maturities of up to two years less one day to investors.
The U.S. commercial paper program in the amount of $10 billion
allows E.ON AG and E.ON N.A. Funding LLC, a wholly owned
U.S. subsidiary (under the unconditional guarantee of E.ON
AG) to issue from time to time commercial paper with maturities
of up to 366 days and extendible notes with original
maturities of up to 397 days (and a subsequent extension
option for the investor) to investors. As of December 31, 2009,
€1,520 million in commercial paper was outstanding under
these two programs (2008: €7,305 million).
119

120 Notes
€9 Billion Syndicated Revolving Credit Facility
In November 2009, E.ON reduced the existing revolving credit
facility from €12.5 billion to approximately €9 billion as
planned. The facility is subdivided into a 364-day tranche
(“Tranche A”) and a long-term tranche (“Tranche B”). Tranche A
was extended in November 2009 at a level of €4 billion
( previously €7.5 billion); the new maturity date is November 25,
2010. Tranche B in the amount of approximately €5 billion
continues unchanged through December 2, 2011. As in 2008,
no borrowings were outstanding under this facility as of
Bonds Issued by E.ON AG and E.ON International Finance B.V.
€ in millions Total
Financial Liabilities by Segment as of December 31
€ in millions
Due
in 2009
Due
in 2010
Financial liabilities to financial institutions include collateral
received, measured at a fair value of €312 million (2008:
€1,035 million). This collateral includes amounts pledged by
banks to limit the utilization of credit lines in connection
with the fair value measurement of derivative transactions.
The other financial liabilities include promissory notes in
the amount of €1,410 million (2008: €1,293 million). Additionally
included in this line item are margin deposits received in
connection with forward transactions on futures exchanges
in the amount of €155 million (2008: €164 million), as well
as collateral received in connection with goods and services
in the amount of €43 million (2008: €31 million). E.ON can
use this collateral without restriction.
Due
in 2011
Due
in 2012
Due
in 2013
Due
between
2014 and
2020
Central Europe Pan-European Gas U.K.
Due
after 2020
December 31, 2009 28,007 – 1,807 2,234 2,970 2,745 13,866 4,385
December 31, 2008 24,089 4,250 1,810 950 2,673 1,970 9,190 3,246
Financial Liabilities by Segment
The following table breaks down the financial liabilities by
segment:
December 31, 2009. The facility also serves as a backup facility
for the commercial paper programs, and allows E.ON AG
and E.ON International Finance B.V. (under the unconditional
guarantee of E.ON AG) to take out loans in an aggregate
amount of up to €9 billion.
As of December 31, 2009, the bonds issued by E.ON AG and EIF
had the maturities shown in the table below. The values
shown are based on internal liquidity-management data and
take into account economic hedges:
2009 2008 2009 2008 2009 2008
Bonds – – – – 9 272
Commercial paper – – – – – –
Bank loans/Liabilities to banks 848 1,209 2 84 52 26
Liabilities from finance leases 151 149 62 63 – –
Other financial liabilities 698 796 66 105 13 –
Financial liabilities 1,697 2,154 130 252 74 298
Trade Payables and Other Operating Liabilities
Trade payables totaled €4,635 million as of December 31, 2009
(2008: €5,938 million).
Capital expenditure grants of €345 million (2008: €345 million)
were paid primarily by customers for capital expenditures
made on their behalf, while E.ON retains ownership of the
assets. The grants are non-refundable and are recognized in
other operating income over the period of the depreciable
lives of the related assets.

Nordic U.S. Midwest Energy Trading New Markets
Construction grants of €3,280 million (2008: €3,488 million)
were paid by customers for the cost of new gas and electricity
connections in accordance with the generally binding terms
governing such new connections. These grants are customary
in the industry, generally non-refundable and recognized
as revenue according to the useful lives of the related assets.
Other operating liabilities consist primarily of accruals in the
amount of €5,846 million (2008: €6,482 million) and interest
payable in the amount of €1,090 million (2008: €1,046 million).
Also included in other operating liabilities are the counterparty
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Corporate Center/
Consolidation E.ON Group
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
536 506 530 549 – – – – 27,888 23,984 28,963 25,311
– – – – – – – – 1,520 7,305 1,520 7,305
100 – – – – – 465 652 818 1,571 2,285 3,542
27 27 – – – – – – 5 8 245 247
561 719 – – 155 171 311 402 2,960 2,460 4,764 4,653
1,224 1,252 530 549 155 171 776 1,054 33,191 35,328 37,777 41,058
obligations to acquire additional shares in already consolidated
subsidiaries and minority interests in fully consolidated partnerships
totaling €653 million (2008: €832 million), which are
carried forward. In 2008, an obligation to transfer generating
capacity in Italy in the amount of €1,509 million (see Note 4)
was also included here.
Exploration activities accounted for €6 million (2008: €6 million)
of the trade payables and other operating liabilities reported.
121

122 Notes
(27) Contingencies and Other Financial Obligations
As part of its business activities, E.ON is subject to contingencies
and other financial obligations involving a variety of
underlying matters. These primarily include guarantees, obligations
from litigation and claims (as discussed in more
detail in Note 28), short- and long-term contractual, legal and
other obligations and commitments.
Contingencies
The contingent liabilities of the E.ON Group arising from existing
contingencies amounted to €307 million as of December 31, 2009
(2008: €155 million). E.ON currently does not have reimbursement
rights relating to the contingent liabilities disclosed.
E.ON has issued direct and indirect guarantees to third parties,
which require E.ON to make contingent payments based on
the occurrence of certain events or changes in an underlying
instrument that is related to an asset, a liability or an equity
instrument of the guaranteed party, on behalf of both related
parties and external entities. These consist primarily of financial
guarantees and warranties.
In addition, E.ON has also entered into indemnification agreements.
Along with other guarantees, these indemnification
agreements are incorporated in agreements entered into by
Group companies concerning the disposal of shareholdings
and, above all, cover the customary representations and warranties,
as well as environmental damage and tax contingencies.
In some cases the buyer of such shareholdings is required to
either share costs or cover certain specific costs before E.ON
itself is required to make any payments. Some obligations
are covered in the first instance by provisions of the disposed
companies. Guarantees issued by companies that were later
sold by E.ON AG (or VEBA AG and VIAG AG before their merger)
are usually included in the respective final sales contracts in
the form of indemnities.
Moreover, E.ON has commitments under which it assumes joint
and several liability arising from its interests in the civil-law
companies (“GbR”), non-corporate commercial partnerships
and consortia in which it participates.
The guarantees of E.ON also include items related to the operation
of nuclear power plants. With the entry into force of
the German Nuclear Power Regulations Act (“Atomgesetz” or
“AtG”), as amended, and of the ordinance regulating the provision
for coverage under the Atomgesetz (“Atomrecht liche
Deckungsvorsorge-Verordnung” or “AtDeckV”) of April 27, 2002,
as amended, German nuclear power plant operators are
required to provide nuclear accident liability coverage of up
to €2.5 billion per incident.
The coverage requirement is satisfied in part by a standardized
insurance facility in the amount of €255.6 million. The institution
Nuklear Haftpflicht Gesellschaft bürgerlichen Rechts
(“Nuklear Haftpflicht GbR”) now only covers costs between
€0.5 million and €15 million for claims related to officially
ordered evacuation measures. Group companies have agreed
to place their subsidiaries operating nuclear power plants in
a position to maintain a level of liquidity that will enable
them at all times to meet their obligations as members of
the Nuklear Haftpflicht GbR, in proportion to their shareholdings
in nuclear power plants.
To provide liability coverage for the additional €2,244.4 million
per incident required by the above-mentioned amendments,
E.ON Energie and the other parent companies of German
nuclear power plant operators reached a Solidarity Agreement
(“Solidarvereinbarung”) on July 11, July 27, August 21, and
August 28, 2001. If an accident occurs, the Solidarity Agreement
calls for the nuclear power plant operator liable for the
damages to receive—after the operator’s own resources and
those of its parent companies are exhausted—financing
sufficient for the operator to meet its financial obligations.
Under the Solidarity Agreement, E.ON Energie’s share of the
liability coverage on December 31, 2009, remained unchanged
from 2008 at 42.0 percent, which includes an additional
5.0 percent charge for the administrative costs of processing
damage claims.

In accordance with Swedish law, the companies of the Nordic
market unit have issued guarantees to governmental authorities.
The guarantees were issued to cover possible additional
costs related to the disposal of high-level radioactive waste
and to the decommissioning of nuclear power plants. These
costs could arise if actual costs exceed accumulated funds.
In addition, the Nordic market unit is also responsible for any
costs related to the disposal of low-level radioactive waste.
In Sweden, owners of nuclear facilities are liable for damages
resulting from accidents occurring in those nuclear facilities
and for accidents involving any radioactive substances connected
to the operation of those facilities. The liability per
incident as of December 31, 2009, was limited to SEK 3,392 million,
or €331 million (2008: SEK 3,625 million, or €333 million).
This amount must be insured according to the Law Concerning
Nuclear Liability. The Nordic market unit has purchased
the necessary insurance for its nuclear power plants. The
Swedish government is still in the process of reviewing the
regulatory framework for the aforementioned liability limitation.
The extent to which this review will result in changes
to the Swedish regulations on the limitation of nuclear liability
is still unclear at present.
Other than in the Central Europe and Nordic market units,
there are no further nuclear power plants in operation.
Accordingly, there are no additional contingencies comparable
to those mentioned above.
Other Financial Obligations
In addition to provisions and liabilities carried on the balance
sheet and to the reported contingent liabilities, there also
are other mostly long-term financial obligations arising mainly
from contracts entered into with third parties and related
parties, or on the basis of legal requirements.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
As of December 31, 2009, purchase commitments for investments
in intangible assets and in property, plant and equipment
amounted to €10.5 billion (2008: €11.1 billion). Of these
commitments, €4.2 billion are due within one year. This total
mainly includes obligations for as yet outstanding investments
in connection with new power plant construction projects,
modernizations of existing power plants, ex ploration
projects and the network connection of offshore wind farms,
particularly at the Central Europe, Nordic, Pan-European Gas,
Russia and Climate & Renewables market units. As of December
31, 2009, the obligations for new power plant construction
reported under purchase commitments totaled €4.5 billion. They
include obligations for the construction of wind power plants.
Additional financial obligations arose from rental and tenancy
agreements and from operating leases. The corresponding
minimum lease payments, presented at their nominal values,
are due as broken down in the table below:
E.ON as Lessee—Operating Leases
€ in millions
Minimum lease payments
2009 2008
Due within 1 year 220 212
Due in 1 to 5 years 511 552
Due in more than 5 years 497 614
Total 1,228 1,378
The expenses reported in the income statement for such
contracts amounted to €230 million (2008: €232 million). Furthermore,
a lease-leaseback arrangement for power plants
has resulted in cash flows, which are financed by restricted,
offsetting investments totaling approximately €0.4 billion
(2008: €0.5 billion) that are congruent in terms of amounts,
maturities and currencies. The arrangement expires in 2030.
123

124 Notes
Additional long-term contractual obligations in place at the
E.ON Group as of December 31, 2009, relate primarily to the
purchase of fossil fuels such as natural gas, lignite and hard
coal. Financial obligations under these purchase contracts
amounted to approximately €327.5 billion on December 31,
2009 (€20.5 billion due within one year).
Gas is usually procured on the basis of long-term purchase
contracts with large international producers of natural gas.
Such contracts are generally of a “take-or-pay” nature. The
prices paid for natural gas are normally tied to the prices of
competing energy sources, as dictated by market conditions.
The conditions of these long-term contracts are reviewed at
certain specific intervals (usually every three years) as part
of contract negotiations and may thus change accordingly. In
the absence of an agreement on a pricing review, a neutral
board of arbitration makes a final binding decision. Financial
obligations arising from these contracts are calculated based
on the same principles that govern internal budgeting. Furthermore,
the take-or-pay conditions in the individual contracts
are also considered in the calculations.
In 2009, purchase commitments for natural gas increased as
a result of changes in planning assumptions in view of an
anticipated long-term increase in energy prices.
(28) Litigation and Claims
A number of different court actions (including product liability
claims and allegations of price fixing), governmental investigations
and proceedings, and other claims are currently pending
or may be instituted or asserted in the future against
companies of the E.ON Group. This in particular includes legal
actions and proceedings concerning alleged price-fixing
agreements and anticompetitive practices. In addition, there
are lawsuits pending against E.ON AG and U.S. subsidiaries
in connection with the disposal of VEBA Electronics in 2000.
The entire sector is involved in a multitude of court proceedings
throughout Germany in the matter of price-adjustment
clauses in the retail electricity and gas supply business with
high-volume customers. The legal issues involved have not
yet been definitively addressed at the highest judicial level.
Companies of the E.ON Group are also involved in legal proceedings
in this area. Although the courts have shown a noticeable
sector-wide tendency to rule against the utilities, it
remains to bee seen how case law will develop in the future.
As of December 31, 2009, €9.0 billion in contractual obligations
(€2.4 billion due within one year) are in place for the purchase
of electricity; these relate in part to purchases from jointly
operated power plants in the Central Europe market unit. The
purchase price of electricity from jointly operated power
plants is generally based on the supplier’s production cost plus
a profit margin that is generally calculated on the basis of
an agreed return on capital.
Other purchase commitments as of December 31, 2009
amounted to approximately €2.0 billion (€0.2 billion due within
one year). In addition to purchase commitments for heat
and alternative fuels, there are long-term contractual obligations
in place at the Central Europe market unit for the procurement
of services in the area of reprocessing and interim
storage of spent nuclear fuel elements delivered through
June 30, 2005.
Further financial obligations in place as of December 31, 2009,
totaled approximately €3.3 billion (€1.6 billion due within
one year). Among others, they include financial obligations
from services to be procured, obligations concerning the
acquisition of shares and the acquisition of real estate funds
held as financial assets, as well as corporate actions.
On July 8, 2009, the European Commission imposed a fine of
€553 million on E.ON Ruhrgas for joint liability in alleged
market-sharing activities with GdF Suez. E.ON Ruhrgas and
E.ON filed an appeal against the Commission’s decision
with the European Court of First Instance in September. The
appeal does not have suspensory effect, and the fine was
thus paid when due in October 2009. Further proceedings in
this matter cannot be ruled out.
Following its sector inquiry into the European energy markets
in 2005, the European Commission initiated proceedings
alleging anticompetitive practices against a number of European
upstream gas businesses, among them E.ON Ruhrgas.
In 2009, the Commission stated its belief that E.ON Ruhrgas
had used long-term bookings of virtually all of the gas
import capacity in the E.ON Gastransport network to shut
out competitors in the gas trading market. Because court
proceedings would have entailed substantial business and

procedural risks, negotiations were held with the Commission
at the end of 2009. The result was an agreement whereby
E.ON Ruhrgas returns a portion of its long-term gas import
capacity bookings to E.ON Gastransport and undertakes to
comply with specific booking quotas. The Commission has welcomed
the offer and will conduct a market test on it through
the end of February 2010. A decision on whether to declare this
commitment as binding and discontinue the proceedings is
expected in March or April of 2010.
(29) Supplemental Disclosures of Cash Flow
Information
Supplemental Disclosure of
Cash Flow Information
€ in millions 2009 2008
Non-cash investing and financing
activities
Exchanges in corporate transactions 3,251 4,346
Funding of external fund assets for
pension obligations through transfer of
fixed-term deposits and securities 1,705 –
The total consideration received by E.ON for the disposal of
consolidated equity interests and activities generated cash
inflows of €5,507 million. Cash and cash equivalents divested
in connection with the disposals amounted to €664 million.
The sale of these activities led to reductions of €4,797 million
in assets and €1,246 million in provisions and liabilities. No
cash sales of consolidated equity interests or activities took
place in 2008.
Corporate transactions in 2009 involved the non-cash exchange
of generating capacity as part of the implementation of the
commitment made by E.ON to the European Commission, as
well as the Yuzhno-Russkoye transaction, which included
non-cash components totaling €2,303 million. In 2008, the
delivery of own shares and of the power plant units as part
of the Statkraft/E.ON Sverige transaction, altogether valued
at €4,346 million, was a non-cash consideration (see also
Note 4). Purchase prices for subsidiaries totaled €8,730 million
in 2008 and included €104 million in cash and cash equivalents.
These 2008 purchases contributed assets in the amount
of €19,016 million and provisions and liabilities in the amount
of €9,965 million.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Because litigation and claims are subject to numerous uncertainties,
their outcome cannot be ascertained; however, in
the opinion of management, any potential obligations arising
from these matters will not have a material adverse effect
on the financial condition, results of operations or cash flows
of the Company.
Cash provided by operating activities of the E.ON Group was
34 percent higher in 2009 than in 2008. The increase is primarily
due to the reduction of the commitment of working
capital at the U.K. and Central Europe market units, which
had been relatively high in 2008, and to positive effects from
the utilization of gas storage at the Pan-European Gas market
unit. In addition, a negative prior-year effect in the trading
operations was eliminated. These increased cash flows were
offset by the payment of a fine to the European Commission
and by payments of tax arrears, all of which had a particularly
negative effect on operating cash flow in the amount of
approximately €1 billion.
Spending on investments in property, plant and equipment
and on intangible assets was approximately 7 percent below
the previous year’s high level. Spending on equity investments
declined significantly in 2009. The high amount in 2008 was
due primarily to the acquisition of the Endesa Europa/Viesgo
holdings package, with activities primarily in Italy, Spain and
France. The disposal in 2009 of generating capacity and the
sale of the Thüga group made further positive contributions
to cash provided by investing activities.
Funds tied down in fixed-term deposits, securities and
restricted cash changed only slightly in 2009.
Cash provided by financing activities was negative in the
2009 fiscal year. This was caused by a higher dividend distribution
by E.ON AG and by the net repayment of financial
liabilities. The higher positive value for 2008 was primarily
due to increased borrowing.
Exploration activity resulted in operating cash flow of -€74 million
(2008: -€78 million) and in cash flow from investing activities
of -€87 million (2008: -€26 million).
125

126 Notes
(30) Derivative Financial Instruments and Hedging
Transactions
Strategy and Objectives
The Company’s policy generally permits the use of derivatives
if they are associated with underlying assets or liabilities,
planned transactions, or legally binding rights or obligations.
Proprietary trading activities are concentrated on the Energy
Trading market unit and are conducted within the confines
of the risk management guidelines described below.
Hedge accounting in accordance with IAS 39 is employed primarily
for interest rate derivatives used to hedge long-term
debts, as well as for currency derivatives used to hedge net
investments in foreign operations, long-term receivables and
debts denominated in foreign currency, as well as planned
capital investments. In commodities, potentially volatile future
cash flows resulting primarily from planned purchases and
sales of electricity within and outside of the Group, as well
as from anticipated fuel purchases and purchases and sales
of gas, are hedged.
Fair Value Hedges
Fair value hedges are used to protect against the risk from
changes in market values. The Company uses fair value hedge
accounting specifically in the exchange of fixed-rate commitments
in long-term receivables and liabilities denominated
in euro and British pounds for variable rates. The hedging
instruments used for such exchanges are interest rate swaps.
Gains and losses on these hedges are generally reported in
that line item of the income statement which also includes
the respective hedged items. Interest rate fair value hedges
are reported under “Interest and similar expenses.” Adjustments
to the carrying amounts of hedged items produced a
loss in 2009 of €5 million (2008: €88 million loss), which was
offset by realized gains of €17 million (2008: €81 million gain)
for the year in the designated hedging instruments. The fair
value hedges that were in place in 2008 expired in 2009. The
negative fair values of the derivatives used in fair value
hedges in 2008 totaled €9 million.
Cash Flow Hedges
Cash flow hedges are used to protect against the risk arising
from variable cash flows. Interest rate and cross-currency
interest rate swaps are the principal instruments used to limit
interest rate and currency risks. The purpose of these swaps is
to maintain the level of payments arising from long-term
interest-bearing receivables and liabilities and from capital
investments denominated in foreign currency and euro by
using cash flow hedge accounting in the functional currency
of the respective E.ON company.
In order to reduce future cash flow fluctuations arising from
electricity transactions effected at variable spot prices, forward
contracts, futures and swaps are concluded and also
accounted for using cash flow hedge accounting.
As of December 31, 2009, the hedged transactions in place
included foreign currency cash flow hedges with maturities
of up to 29 years (2008: up to 30 years) and up to eleven
years (2008: up to twelve years) for interest cash flow hedges.
Commodity cash flow hedges have maturities of up to three
years (2008: up to five years).
The amount of ineffectiveness for cash flow hedges recorded
for the year ended December 31, 2009, produced a gain of
€2 million (2008: €5 million loss).

Pursuant to the information available as of the balance sheet
date, the following effects will accompany the reclassifications
from accumulated other comprehensive income to the income
statement in subsequent periods:
Timing of Reclassifications from OCI 1 to the Income Statement—2009
€ in millions
Gains and losses from reclassification are generally reported
in that line item of the income statement which also includes
the respective hedged transaction. Gains and losses from the
ineffective portions of cash flow hedges are classified as other
operating income or other operating expenses. Interest cash
flow hedges are reported under “Interest and similar expenses.”
The fair values of the derivatives used in cash flow hedges
totaled €4 million (2008: €167 million).
A gain of €45 million (2008: €474 million) was added to other
comprehensive income in 2009. In the same period, a gain
of €162 million (2008: €293 million loss) was reclassified from
OCI to the income statement.
Net Investment Hedges
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Carrying
amount 2010 2011 2012–2014 >2014
OCI—Currency cash flow hedges -61 -38 -18 -34 29
OCI—Interest cash flow hedges 14 1 – – 13
OCI—Commodity cash flow hedges -62 -83 15 6 –
1 OCI = Other comprehensive income. Figures are pre-tax.
Timing of Reclassifications from OCI 1 to the Income Statement—2008
€ in millions
Carrying
amount 2009 2010 2011–2013 >2013
OCI—Currency cash flow hedges -99 -35 -18 -13 -33
OCI—Interest cash flow hedges 16 – 1 – 15
OCI—Commodity cash flow hedges 187 95 49 43 –
1 OCI = Other comprehensive income. Figures are pre-tax.
The Company uses foreign currency loans, foreign currency
forwards and foreign currency swaps to protect the value of
its net investments in its foreign operations denominated
in foreign currency. For the year ended December 31, 2009,
the Company recorded an amount of €1,374 million (2008:
€2,083 million) in accumulated other comprehensive income
due to changes in fair value of derivatives and to currency
translation results of non-derivative hedging instruments.
There was a loss of €1 million related to ineffective portions
from net investment hedges in 2009 (2008: €6 million gain).
127

128 Notes
Valuation of Derivative Instruments
The fair value of derivative instruments is sensitive to movements
in underlying market rates and other relevant variables.
The Company assesses and monitors the fair value of derivative
instruments on a periodic basis. Fair values for each
derivative financial instrument are determined as being
equal to the price at which one party would assume the rights
and duties of another party, and calculated using common
market valuation methods with reference to available market
data as of the balance sheet date.
The following is a summary of the methods and assumptions
for the valuation of utilized derivative financial instruments
in the Consolidated Financial Statements.
• Currency, electricity, gas, oil and coal forward contracts,
swaps, and emissions-related derivatives are valued separately
at their forward rates and prices as of the balance
sheet date. Whenever possible, forward rates and prices
are based on market quotations, with any applicable forward
premiums and discounts taken into consideration.
• Market prices for interest-rate, electricity and gas options
are valued using standard option pricing models commonly
used in the market. The fair values of caps, floors and
collars are determined on the basis of quoted market
prices or on calculations based on option pricing models.
• The fair values of existing instruments to hedge interest
risk are determined by discounting future cash flows
using market interest rates over the remaining term of
the instrument. Discounted cash values are determined
for interest rate, cross-currency and cross-currency interest
rate swaps for each individual transaction as of the balance
sheet date. Interest income is recognized in income
at the date of payment or accrual.
• Equity forwards are valued on the basis of the stock prices
of the underlying equities, taking into consideration any
timing components.
• Exchange-traded energy futures and option contracts
are valued individually at daily settlement prices determined
on the futures markets that are published by
their respective clearing houses. Paid initial margins are
disclosed under other assets. Variation margins received
or paid during the term of such contracts are stated under
other liabilities or other assets, respectively.
• Certain long-term energy contracts are valued with the
aid of valuation models that use internal data if market
prices are not available. A hypothetical ten-percent
increase or decrease in these internal valuation parameters
as of the balance sheet date would lead to a theoretical
decrease in market values of €235 million or an
increase of €285 million, respectively.
At the beginning of 2009, a loss of €64 million from the initial
measurement of derivatives was deferred. After additions
of €104 million in gains and the realization of €16 million in
deferred losses, the remainder is a deferred gain of €56 million
at year-end, which will be recognized in income during
subsequent periods as the contracts are settled.
The following two tables include both derivatives that qualify
for IAS 39 hedge accounting treatment and those for which
it is not used.

Total Volume of Foreign Currency, Interest Rate and Equity-Based Derivatives
€ in millions
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
December 31, 2009 December 31, 2008
Nominal
value Fair value
Nominal
value Fair value
FX forward transactions 16,949.2 -42.2 16,770.8 321.7
Subtotal 16,949.2 -42.2 16,770.8 321.7
Cross-currency swaps 18,407.0 119.0 20,974.7 1,878.1
Cross-currency interest rate swaps 510.4 -32.4 523.8 -17.4
Subtotal 18,917.4 86.6 21,498.5 1,860.7
Interest rate swaps
Fixed-rate payer 1,595.4 -129.7 2,131.1 -212.5
Fixed-rate receiver 1,282.7 61.6 6,285.2 125.8
Interest rate future 188.8 1.7 87.9 0.1
Interest rate options 127.7 – 134.8 –
Subtotal 3,194.6 -66.4 8,639.0 -86.6
Other derivatives 79.5 6.4 138.4 14.0
Subtotal 79.5 6.4 138.4 14.0
Total 39,140.7 -15.6 47,046.7 2,109.8
Total Volume of Electricity, Gas, Coal, Oil and Emissions-Related Derivatives
€ in millions
December 31, 2009 December 31, 2008
Nominal
value Fair value
Nominal
value Fair value
Electricity forwards 49,623.4 -584.4 40,485.6 -595.1
Exchange-traded electricity forwards 10,755.0 13.7 13,503.1 6.2
Electricity swaps 2,980.4 29.9 1,811.9 -375.6
Exchange-traded electricity options 145.5 -6.2 3,049.4 -84.5
Coal forwards and swaps 7,975.9 -28.2 9,525.0 -350.4
Exchange-traded coal forwards 2,691.3 3.7 32.7 -9.8
Oil derivatives 5,852.6 -33.5 9,393.4 -1,000.3
Exchange-traded oil derivatives 5,437.0 56.9 – –
Gas forwards 23,914.3 255.5 21,946.9 -7.6
Gas swaps 6,271.0 16.3 354.5 -141.0
Exchange-traded gas forwards 1,100.9 1.4 52.9 2.4
Emissions-related derivatives 2,757.6 3.7 777.6 17.6
Exchange-traded emissions-related derivatives 21.0 1.1 176.0 -6.4
Other derivatives 60.8 14.7 – –
Total 119,586.7 -255.4 101,109.0 -2,544.5
129

130 Notes
(31) Additional Disclosures on Financial Instruments
The carrying amounts of the financial instruments, their grouping
into IAS 39 measurement categories, their fair values and
their measurement sources by class are presented in the following
table, with amendments to IAS 39 taken into account:
Carrying Amounts, Fair Values and Measurement Categories by Class
within the Scope of IFRS 7 as of December 31, 2009
€ in millions
Carrying
amounts
The carrying amounts of cash and cash equivalents and of
trade receivables are considered reasonable estimates of their
fair values because of their short maturity.
Total
carrying
amounts
within the
scope of
IFRS 7
IAS 39
measurement
category 1 Fair value
Determined
using
market
prices
Derived
from active
market
prices
Equity investments 5,461 5,461 AfS 5,461 3,815 493
Financial receivables and other financial assets 4,381 4,373 4,609 – –
Receivables from finance leases 622 622 n/a 627 – –
Other financial receivables and financial assets 3,759 3,751 LaR 3,982 – –
Trade receivables and other operating assets 26,395 23,059 23,059 2,013 7,754
Trade receivables 11,577 11,577 LaR 11,577 – –
Derivatives with no hedging relationships 8,952 8,952 HfT 8,952 2,013 6,785
Derivatives with hedging relationships 969 969 n/a 969 – 969
Other operating assets 4,897 1,561 LaR 1,561 – –
Securities and fixed-term deposits 5,392 5,392 AfS 5,392 4,384 1,008
Cash and cash equivalents 4,210 4,210 AfS 4,210 4,183 27
Restricted cash 184 184 AfS 184 137 47
Assets held for sale 2,273 81 AfS 81 – 81
Total assets 48,296 42,760 42,996 14,532 9,410
Financial liabilities 37,777 37,566 41,518 – –
Bonds 28,963 28,963 AmC 32,799 – –
Commercial paper 1,520 1,520 AmC 1,520 – –
Bank loans/Liabilities to banks 2,285 2,285 AmC 2,285 – –
Liabilities from finance leases 245 245 n/a 356 – –
Other financial liabilities 4,764 4,553 AmC 4,558 – –
Trade payables and other operating liabilities 30,949 24,163 24,163 2,210 6,948
Trade payables 4,635 4,635 AmC 4,635 – –
Derivatives with no hedging relationships 9,505 9,505 HfT 9,505 2,210 6,261
Derivatives with hedging relationships 687 687 n/a 687 – 687
Put option liabilities under IAS 32 653 653 AmC 653 – –
Other operating liabilities 15,469 8,683 AmC 8,683 – –
Total liabilities 68,726 61,729 65,681 2,210 6,948
1 AfS: Available for sale; LaR: Loans and receivables; HfT: Held for trading; AmC: Amortized cost. The categories are described in detail in Note 2. The values of financial instruments
measured at fair value (AfS, HfT, n/a) using valuation techniques with unobservable inputs (Level 3 of the fair value hierarchy) can be derived from the difference
between the fair values of the two disclosed fair value hierarchies and the total fair value of the listed categories.
Where the value of a financial instrument can be derived from
an active market without the need for an adjustment, that
value is used as the fair value. This applies in particular to
equities held and bonds issued.

Carrying Amounts, Fair Values and Measurement Categories by Class
within the Scope of IFRS 7 as of December 31, 2008
€ in millions
The fair value of shareholdings in unlisted companies and of
debt instruments that are not actively traded, such as loans
received, loans granted and financial liabilities, is determined
by discounting future cash flows. Any necessary discounting
takes place using current market interest rates over the
remaining terms of the financial instruments. Fair value
Carrying
amounts
Total
carrying
amounts
within the
scope of
IFRS 7
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
IAS 39
measurement
category 1 Fair value
Determined
using market
prices
Equity investments 3,806 3,806 AfS 3,806 2,121
Financial receivables and other financial assets 4,552 4,536 4,769 1,381
Receivables from finance leases 650 650 n/a 654 –
Other financial receivables and financial assets 3,902 3,886 LaR 4,115 1,381
Trade receivables and other operating assets 32,637 29,333 29,336 594
Trade receivables 14,416 14,373 LaR 14,375 –
Derivatives with no hedging relationships 11,705 11,705 HfT 11,705 590
Derivatives with hedging relationships 1,487 1,487 n/a 1,487 –
Other operating assets 5,029 1,768 LaR 1,769 4
Securities and fixed-term deposits 7,142 7,142 AfS 7,142 6,380
Cash and cash equivalents 3,671 3,671 AfS 3,671 1,848
Restricted cash 552 552 AfS 552 –
Assets held for sale 4,521 1,568 AfS 1,568 1,447
Total assets 56,881 50,608 50,844 13,771
Financial liabilities 41,058 41,045 42,899 23,167
Bonds 25,311 25,311 AmC 27,224 23,162
Commercial paper 7,305 7,305 AmC 7,305 –
Bank loans/Liabilities to banks 3,542 3,542 AmC 3,464 –
Liabilities from finance leases 247 247 n/a 256 –
Other financial liabilities 4,653 4,640 AmC 4,650 5
Trade payables and other operating liabilities 38,123 29,470 29,467 729
Trade payables 5,938 5,925 AmC 5,925 –
Derivatives with no hedging relationships 13,038 13,038 HfT 13,038 729
Derivatives with hedging relationships 601 601 n/a 601 –
Put option liabilities under IAS 32 832 832 AmC 832 –
Other operating liabilities 17,714 9,074 AmC 9,071 –
Total liabilities 79,181 70,515 72,366 23,896
1 AfS: Available for sale; LaR: Loans and receivables; HfT: Held for trading; AmC: Amortized cost. The categories are described in detail in Note 2.
measurement was not applied in the case of shareholdings
with a carrying amount of €310 million (2008: €300 million)
as cash flows could not be determined reliably for them. Fair
values could not be derived on the basis of comparable
transactions. The shareholdings are not material by comparison
with the overall position of the Group.
131

132 Notes
The carrying amount of commercial paper, borrowings under
revolving short-term credit facilities and trade payables is used
as the fair value due to the short maturities of these items.
Fair Value Hierarchy Level 3 Reconciliation (Values Determined Using Valuation Techniques)
€ in millions
Jan. 1,
2009
Purchases
(including
additions)
Sales
(including
disposals)
The determination of the fair value of derivative financial
instruments is discussed in Note 30. The fair values determined
using valuation techniques for financial instruments carried
at fair value are reconciled as shown in the following table:
Settlements
Gains/
Losses in
income
statement
into
Level 3
Transfers Gains/
out of
Level 3
Losses in
OCI
Dec. 31,
2009
Equity investments 1,058 189 -65 – -33 – – 4 1,153
Derivative financial
instruments -983 -117 – 141 79 – – – -880
Total 75 72 -65 141 46 0 0 4 273
The following two tables illustrate the contractually agreed
(undiscounted) cash outflows arising from the liabilities
included in the scope of IFRS 7:
Cash Flow Analysis as of December 31, 2009
€ in millions
Cash
outflows
2010
Cash
outflows
2011
Cash
outflows
2012–2014
Cash
outflows
from 2015
Bonds 4,211 3,574 12,807 21,312
Commercial paper 1,538 – – –
Bank loans/Liabilities to banks 1,019 209 198 1,099
Liabilities from finance leases 63 39 108 281
Other financial liabilities 2,301 75 656 2,120
Cash outflows for financial liabilities 9,132 3,897 13,769 24,812
Trade payables 4,635 – – –
Derivatives (with/without hedging relationships) 19,496 6,515 2,009 124
Put option liabilities under IAS 32 200 10 93 349
Other operating liabilities 8,995 30 66 168
Cash outflows for trade payables and other operating liabilities 33,326 6,555 2,168 641
Cash outflows for liabilities within the scope of IFRS 7 42,458 10,452 15,937 25,453

Cash Flow Analysis as of December 31, 2008
€ in millions
For financial liabilities that bear floating interest rates, the
rates that were fixed on the balance sheet date are used to
calculate future interest payments for subsequent periods
as well. Financial liabilities that can be terminated at any time
are assigned to the earliest maturity band in the same way
as put options that are exercisable at any time. All covenants
were complied with during 2009.
In gross-settled derivatives (usually currency derivatives and
commodity derivatives), outflows are accompanied by related
inflows of funds or commodities.
The net gains and losses from financial instruments by IAS 39
category are shown in the following table:
Net Gains and Losses by Category 1
€ in millions 2009 2008
Loans and receivables -141 114
Available for sale 2,158 133
Held for trading 1,754 -2,663
Amortized cost -1,678 -1,741
Total 2,093 -4,157
1 The categories are described in detail in Notes 2 and 9.
Cash
outflows
2009
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Cash
outflows
2010
Cash
outflows
2011–2013
Cash
outflows
from 2014
Bonds 4,546 3,410 8,292 25,352
Commercial paper 7,428 – – –
Bank loans/Liabilities to banks 2,272 399 332 845
Liabilities from finance leases 51 60 103 294
Other financial liabilities 2,510 182 882 1,604
Cash outflows for financial liabilities 16,807 4,051 9,609 28,095
Trade payables 5,938 – – –
Derivatives (with/without hedging relationships) 28,487 10,460 3,051 985
Put option liabilities under IAS 32 144 112 55 536
Other operating liabilities 9,098 59 112 319
Cash outflows for trade payables and other operating liabilities 43,667 10,631 3,218 1,840
Cash outflows for liabilities within the scope of IFRS 7 60,474 14,682 12,827 29,935
In addition to interest income and expenses from financial
receivables, the net gains and losses in the loans and receivables
category consist primarily of valuation allowances on trade
receivables. Gains and losses on the disposal of available-forsale
securities and equity investments are reported under other
operating income and other operating expenses, respectively.
The net gains and losses in the amortized cost category are
due primarily to interest on financial liabilities, adjusted for
capitalized construction-period interest.
The net gains and losses in the held-for-trading category
encompass both the changes in fair value of the derivative
financial instruments and the gains and losses on realization.
The fair value measurement of commodity derivatives is
the most important factor in the net result for this category
(see Note 7).
Financial guarantees totaling €905 million (2008: 546 million)
were issued to companies outside of the Group. This amount
is the maximum amount that E.ON would have to pay in the
event of claims on the guarantees.
133

134 Notes
Risk Management
Principles
The prescribed processes, responsibilities and actions concerning
financial and risk management are described in detail
in internal risk management guidelines applicable throughout
the Group. The market units have developed additional guidelines
of their own within the confines of the Group’s overall
guidelines. To ensure efficient risk management at the E.ON
Group, the Trading (Front Office), Financial Settlement (Back
Office) and Risk Controlling (Middle Office) departments are
organized as strictly separate units. Risk controlling and reporting
in the areas of interest rates, currencies, credit and liquidity
management is performed by the Financial Controlling department,
while risk controlling and reporting in the area of commodities
is performed at Group level by a separate department.
The Company uses a Group-wide treasury, risk management
and reporting system. This system is a standard information
technology solution that is fully integrated and is continuously
updated. The system is designed to provide for the analysis
and monitoring of the E.ON Group’s exposure to liquidity, foreign
exchange and interest risks. The market units employ
established systems for commodities. Credit risks are monitored
and controlled on a Group-wide basis by Financial Controlling,
with the support of a standard software package.
Separate Risk Committees are responsible for the maintenance
and further development of the strategy set by the
Board of Management of E.ON AG with regard to commodity,
treasury and credit risk management policies.
1. Liquidity Management
The primary objectives of liquidity management at E.ON consist
of ensuring ability to pay at all times, the timely fulfillment
of all payment obligations and the optimization of costs within
the E.ON Group.
Cash pooling and external financing are largely centralized at
E.ON AG and certain financing companies. The funds are transferred
internally to the other Group companies as needed.
E.ON AG plans the Group’s financing requirements on the basis
of short- and medium-term liquidity planning. The financing
of the Group is controlled and implemented on a forwardlooking
basis in accordance with planned liquidity requirements.
Relevant planning factors taken into consideration include
operating cash flow, capital expenditures, and the maturity
of bonds and commercial paper.
2. Price Risks
In the normal course of business, the E.ON Group is exposed
to foreign exchange, interest and commodity price risks, and
also to price risks in cash investment activities. These risks
create volatility in earnings, equity and cash flows from period
to period. E.ON has developed a variety of strategies to limit
or eliminate these risks, including the use of derivative financial
instruments.
The following discussion of the Company’s risk management
activities and the estimated amounts generated from profitat-risk
(“PaR”), value-at-risk (“VaR”) and sensitivity analyses are
“forward-looking statements” that involve risks and uncertainties.
Actual results could differ materially from those projected
due to actual, unforeseeable developments in the
global financial markets. The methods used by the Company
to analyze risks should not be considered forecasts of future
events or losses, as the Company also faces risks that are either
non-financial or non-quantifiable. Such risks principally include
country risk, operational risk and legal risk, which are not
represented in the following analyses.
Foreign Exchange Risk Management
E.ON AG is responsible for controlling the currency risks to
which the E.ON Group is exposed, and has set appropriate
risk parameters to this end.
Because it does business outside of the euro area, the E.ON
Group is exposed to currency translation risk. Fluctuations in
exchange rates produce translation effects affecting those
revenues and other items of the income statement, as well
as the assets, liabilities and payments that are denominated
in foreign currency. The Company’s exposure results mainly
from its operations in the United States, the United Kingdom,
Sweden, Russia and Hungary.
This translation risk is reduced by, among other things, borrowing
in local currency, which in particular also includes
shareholder loans in foreign currency. In addition, hedges of
net investments in foreign operations are conducted at
Group level as needed. This also involves the use of derivatives.
The Group’s translation risk is reviewed at regular intervals
and the level of hedging is adjusted whenever necessary. The
corporate purpose, along with the respective debt factor
and the proportional enterprise value denominated in the
foreign currency, are the principal criteria governing the
level of hedging.

The E.ON Group is also exposed to operating and financial
transaction risks arising from foreign-exchange transactions.
Operating transaction risks arise primarily from the purchase
and sale of gas, the procurement of fuels whose prices are
denominated in U.S. dollars, internal use of services and capital
spending in foreign currency. The subsidiaries are respon sible
for controlling their operating currency risks. Recognized assets
and liabilities are generally fully hedged. For unrecognized
firm commitments and forecast transactions, hedging takes
place after consultation between the subsidiary and E.ON AG.
Financial transaction risks arise from monetary receivables
and payables. They are generated both by external financing
in a variety of foreign currencies including the U.S. dollar,
the Swiss franc and the Japanese yen, and by shareholder
loans from within the Group denominated in foreign currency.
Financial transaction risks are generally fully hedged.
The one-day value-at-risk (99 percent confidence) from the
translation of deposits and borrowings denominated in foreign
currency, plus foreign-exchange derivatives, was €176 million
(2008: €341 million) and, as in 2008, resulted primarily from the
positions in British pounds and U.S. dollars.
Interest Risk Management
E.ON is exposed to profit risks arising from financial liabilities
with floating interest rates, maturities and short-term borrowings,
as well as interest-rate derivatives that are based on floating
interest rates. Positions based on fixed interest rates, on
the other hand, are subject to changes in fair value resulting
from the volatility of market rates. E.ON seeks a specific mix
of fixed- and floating-rate debt over time. The long-term orientation
of the business model in principle means fulfilling a
high proportion of financing requirements at fixed rates,
especially within the planning period. This also involves the
use of interest rate swaps. With interest rate derivatives
included, the share of financial liabilities with fixed interest rates
was 88 percent as of December 31, 2009 (2008: 78 percent).
Under otherwise unchanged circumstances, the volume of
financial liabilities with fixed interest rates, which amounted
to €33.5 billion at year-end 2009, would decline to €29.8 billion
in 2010 and to €27.7 billion in 2011. The effective interest
rate duration of the financial liabilities, including interest
rate derivatives, was 6.9 years as of December 31, 2009 (2008:
4.9 years).
As of December 31, 2009, the E.ON Group held interest rate
derivatives with a nominal value of €3,195 million (2008:
€8,639 million).
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
A sensitivity analysis was performed on the Group’s shortterm
and variable-rate financial assets and liabilities within
the scope of IFRS 7, with interest rate derivatives included.
A one-percentage-point increase in interest rates (across all
currencies) would cause net interest expense to rise by €10 million
per annum (2008: €80 million). The alternative internal
management measure generally takes account of short-term
and variable-rate borrowings, including hedges of both foreign
exchange risk and interest risk. That measure is used for
internal controlling and reflects the economic position of
the E.ON Group. A one-percentage-point increase in interest
rates (across all currencies) would cause interest charges to
increase by €40 million in 2010.
Commodity Price Risk Management
E.ON is exposed to substantial risks resulting from fluctuations
in the prices of commodities, both on the supply and demand
side. This risk is measured based on potential negative deviation
from the target adjusted EBIT.
The maximum permissible risk is determined centrally by the
Board of Management in its medium-term planning and translated
into a decentralized limit structure in coordination with
the market units. Before fixing any limits, the investment plans
and all other known obligations and quantifiable risks have
been taken into account. Risk controlling and reporting, including
portfolio optimization, is performed centrally for the
Group at the Corporate Center.
E.ON conducts commodity transactions primarily within the
system portfolio, which includes core operations, existing sales
and procurement contracts and any commodity derivatives
used for hedging purposes or for power plant optimization.
The risk in the system portfolio thus arises from the open
position between planned procurement and generation and
planned sales volumes. The risk of these open positions is
measured using the profit-at-risk number, which quantifies
the risk by taking into account the size of the open position
and the prices, the volatility and the liquidity of the underlying
commodities. PaR is defined as the maximum potential
negative change in the value of the portfolio at a probability
of 95 percent in the event that the open position is closed as
quickly as possible.
The principal derivative instruments used by E.ON to cover
commodity price risk exposures are electricity, gas, coal and
oil swaps and forwards, as well as emissions-related derivatives.
135

136 Notes
Commodity derivatives are used by the market units for the
purposes of price risk management, system optimization,
equalization of burdens, and even for the improvement of margins.
Proprietary trading is permitted only within very tightly
defined limits. The risk metric used for the proprietary trading
portfolio is a five-day value-at-risk with a 95-percent confidence
interval.
The trading limits for proprietary trading as well as for all other
trading activities are established and monitored by bodies
that are independent from trading operations. A three-year
planning horizon, with defined limits, is applied for the system
portfolio. Limits used on hedging and proprietary trading
activities include five-day value-at-risk and profit-at-risk numbers,
as well as stop-loss limits. Additional key elements of the risk
management system are a set of Group-wide commodity risk
guidelines, the clear division of duties between scheduling,
trading, settlement and controlling, as well as a risk reporting
system independent of the trading operations. Group-wide
developments in commodity risks are reported to the responsible
Risk Committee on a monthly basis.
As of December 31, 2009, the E.ON Group has entered into
electricity, gas, coal, oil and emissions-related derivatives with
a nominal value of €119,587 million (2008: €101,109 million).
Operating control over the financial and physical commodity
positions in the liquid European markets had already been
gradually transferred to the newly established Energy Trading
market unit in 2008.
The VaR for the proprietary trading portfolio amounted to
€11.5 million as of December 31, 2009 (2008: €36 million). The
PaR for the financial and physical commodity positions held
in the system portfolio over a three-year planning horizon was
€2,845 million as of December 31, 2009 (2008: €4,337 million).
The calculation of the PaR reflects the economic position of
the E.ON Group over a planning horizon of three years, and in
addition to the financial instruments included in the scope of
IFRS 7, also encompasses the remaining commodity positions.
This economic position is also used for internal risk controlling.
Equity Risk
The value of all exchange-traded equity investments on the
balance sheet date was €3,815 million (2008: €2,121 million).
Most of this amount is attributable to Gazprom. This investment
is not being hedged against market volatility at this time
(three-month volatility in 2009: 25 percent; 2008: 35 percent).
All exchange-traded equity investments are classified as
available for sale. Changes in value are generally shown as
a change in OCI.
Credit Risk Management
Credit risk management at E.ON involves the identification,
measurement and control of credit risks. Credit risk results
from non-delivery or partial delivery by a counterparty of the
agreed consideration for services rendered, from total or partial
failure to make payments owing on existing accounts
receivable, and from replacement risks in open transactions.
In order to minimize credit risk arising from the use of financial
instruments and from operating activities, the Company
enters into transactions only with counterparties that satisfy
the Company’s internally established minimum requirements.
Maximum credit risk limits are set on the basis of internally
established credit ratings. The setting and monitoring of credit
limits is subject to certain minimum requirements, which are
based on Group-wide credit risk management guidelines. Not
included in this process are long-term operating contracts
and asset management transactions. These are monitored
separately at the level of the responsible market units.
In principle, each Group company is responsible for managing
credit risk in its operating activities. Depending on the
nature of the operating activities and the credit limit, additional
credit risk monitoring and controls take place at both
market unit and Group levels. Monthly reports on credit limits,
including their utilization, are presented to the E.ON Risk
Committee. Intensive, standardized monitoring of quantitative
and qualitative early-warning indicators, as well as close
monitoring of the credit quality of counterparties, enable E.ON
to act early in order to minimize risk.
To the extent possible, pledges of collateral are negotiated
with counterparties for the purpose of reducing credit risk.
Accepted as collateral are guarantees issued by the respective
parent companies or evidence of profit-and-loss-pooling
agreements in combination with letters of awareness. To a
lesser extent, the Company also requires bank guarantees and
deposits of cash and securities as collateral to reduce credit
risk. The levels and backgrounds of financial assets received
as collateral are described in more detail in Notes 18 and 26.

Derivative transactions are generally executed on the basis
of standard agreements that allow for the netting of all open
transactions with individual counterparties. For currency and
interest rate derivatives in the banking sector, this netting
option is reflected in the accounting treatment. Although the
greater part of the transactions was completed on the basis
of contracts that do allow netting, the following table does
not show netting of positive and negative fair values of open
Rating of Counterparties
Standard & Poor’s
and/or Moody’s
€ in millions
Rating of Counterparties
Standard & Poor’s
and/or Moody’s
€ in millions
Nominal
value
Nominal
value
Collateral received has not been taken into account in the
above ratings. Exchange-traded forward and option contracts
as well as exchange-traded emissions-related derivatives having
an aggregate nominal value of €20,005 million as of
December 31, 2009, (2008: €13,765 million) bear no credit risk.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
transactions. The credit risk is thus presented more conservatively
in the following table than it actually is. It represents
the sum of the positive fair values. Since derivatives in particular
are subject to substantial fluctuations in market value,
short-term concentrations of credit risk may occur as a result.
In summary, as of December 31, 2009, the Company’s derivative
financial instruments had the credit ratings and maturities
shown in the table.
December 31, 2008
Total Up to 1 year 1 to 5 years More than 5 years
Counterparty
risk
Nominal
value
December 31, 2009
Total Up to 1 year 1 to 5 years More than 5 years
Counterparty
risk
Nominal
value
Counterparty
risk
Counterparty
risk
Nominal
value
Nominal
value
Counterparty
risk
Counterparty
risk
Nominal
value
Nominal
value
Counterparty
risk
AAA/Aaa through AA-/Aa3 34,682.4 3,447.5 23,089.6 2,570.8 10,247.0 773.6 1,345.8 103.1
A+/A1 through A-/A3 46,571.0 4,560.2 25,507.5 2,767.2 12,595.3 802.3 8,468.2 990.7
BBB+/Baa1 through BBB-/Baa3 8,385.2 654.3 5,941.1 411.3 2,350.9 241.8 93.2 1.2
BB+/Ba1 through BB-/Ba3 1,668.9 174.6 584.7 50.9 1,084.2 123.7 – –
Other 1 43,083.5 4,948.9 25,372.4 3,292.8 12,787.8 1,539.1 4,923.3 117.0
Total 134,391.0 13,785.5 80,495.3 9,093.0 39,065.2 3,480.5 14,830.5 1,212.0
1 “Other” consists primarily of parties to contracts with respect to which E.ON has received collateral from counterparties with ratings of the above categories or with an
equivalent internal rating.
Counterparty
risk
AAA/Aaa through AA-/Aa3 26,884.3 2,482.4 14,527.5 1,675.1 9,914.6 674.1 2,442.2 133.2
A+/A1 through A-/A3 69,631.6 6,029.4 41,217.8 3,128.4 21,382.6 1,784.1 7,031.2 1,116.9
BBB+/Baa1 through BBB-/Baa3 8,300.6 369.6 6,602.7 258.6 1,597.9 111.0 100.0 –
BB+/Ba1 through BB-/Ba3 1,983.4 84.9 402.6 13.5 651.2 71.4 929.6 –
Other 1 31,922.3 1,849.4 14,474.3 1,229.5 10,238.1 503.0 7,209.9 116.9
Total 138,722.2 10,815.7 77,224.9 6,305.1 43,784.4 3,143.6 17,712.9 1,367.0
1 “Other” consists primarily of parties to contracts with respect to which E.ON has received collateral from counterparties with ratings of the above categories or with an
equivalent internal rating.
For the remaining financial instruments, the maximum risk
of default is equal to their carrying amounts.
137

138 Notes
Asset Management
For the purpose of financing long-term payment obligations,
including those relating to asset retirement obligations
(see Note 25), financial investments totaling €4.8 billion (2008:
€5.0 billion) were held by companies of the Central Europe
market unit as of December 31, 2009.
These financial assets are invested on the basis of an accumulation
strategy (total-return approach), with investments
broadly diversified across money market instruments, bonds,
real estate and equities. Asset allocation studies are performed
at regular intervals to determine the target portfolio
structure. The majority of the assets is held in investment
funds managed by external fund managers. Risk management
is based on a value-at-risk concept. The three-month VaR
with a 98-percent confidence interval for these financial assets
totaled €103 million (2008: €237 million).
Corporate Asset Management at E.ON AG, which is part of
the Company’s Finance Department, is responsible for continuous
monitoring of overall risks and those concerning
individual fund managers.
(32) Transactions with Related Parties
E.ON exchanges goods and services with a large number of
companies as part of its continuing operations. Some of these
companies are related parties, the most significant of which
are associated companies accounted for under the equity
method. Additionally reported as related parties are joint ventures,
as well as equity interests carried at fair value and
unconsolidated subsidiaries. Transactions with related parties
are summarized as follows:
Related-Party Transactions
€ in millions 2009 2008
Income 5,312 7,492
Expenses 3,060 3,627
Receivables 1,641 2,433
Liabilities 2,950 3,433
Income from transactions with related companies is generated
mainly through the delivery of gas and electricity to distributors
and municipal entities, especially municipal utilities.
In addition, VKE, which is organized in the form of a German
mutual insurance fund (“Versicherungsverein auf Gegenseitigkeit”),
manages financial assets dedicated almost exclusively
to the coverage of employee retirement benefits at
the Central Europe market unit; these assets totaled €0.5 billion
at year-end 2009 (2008: €2.3 billion). In 2009, €2.1 billion
was taken out of VKE, with most of this amount (€1.7 billion)
transferred into the Contractual Trust Arrangement. The
remaining assets at VKE do not constitute plan assets under
IAS 19 and are shown as non-current and current assets on
the balance sheet. The majority of the diversified portfolio,
consisting of money market instruments, bonds, real estate
and equities, is held in investment funds managed by external
fund managers. VKE is subject to the provisions of the Insurance
Supervision Act (“Versicherungs aufsichts gesetz” or
“VAG”) and its operations are supervised by the German Federal
Financial Supervisory Authority (“Bundes anstalt für
Finanzdienst leistungs aufsicht” or “BaFin”). Financial investments
and continuous risk management are conducted within the
regulatory confines set by BaFin. The three-month VaR with a
98-percent confidence interval for these financial assets was
€19.3 million (2008: €216 million).
The relationships with these entities do not generally differ
from those that exist with municipal entities in which E.ON
does not have an interest.
Expenses from transactions with related companies are generated
mainly through the procurement of gas, coal and electricity.
Receivables from related companies consist mainly of trade
receivables.
Liabilities of E.ON payable to related companies include
€369 million (2008: €531 million) in trade payables to operators
of jointly-owned nuclear power plants. These payables bear
interest at 1.0 percent per annum (2008: 1.0 percent) and have
no fixed maturity. E.ON procures electricity from these power
plants both under a cost-transfer agreement and under a costplus-fee
agreement. The settlement of such liabilities occurs
mainly through clearing accounts. In addition, E.ON reported
financial liabilities in 2009 of €1,232 million (2008: €1,237 million)
resulting from fixed-term deposits undertaken by the
jointly-owned nuclear power plants at E.ON.

Under IAS 24, compensation paid to key management personnel
(i.e., the members of the Board of Management of E.ON AG)
must be disclosed. The total expense for 2009 amounted to
€12.3 million (2008: €14.5 million) in short-term benefits and
€1.6 million (2008: €2.3 million) in post-employment benefits.
The service cost of post-employment benefits is equal to the
service cost of the provisions for pensions.
(33) Segment Information
The segment information of the E.ON Group is presented in
line with the Company’s internal organizational and reporting
structure.
• The Central Europe market unit focuses on E.ON’s electricity
business and the downstream gas business in
central Europe.
• Pan-European Gas is responsible for the upstream and
midstream gas business. This market unit additionally
holds interests predominantly in energy businesses in
Europe outside of Germany.
• The U.K. market unit encompasses the energy business
in the United Kingdom.
• The Nordic market unit is concentrated on the energy
business in Northern Europe.
• The U.S. Midwest market unit is primarily active in the
regulated energy market in the U.S. state of Kentucky.
• Energy Trading combines E.ON’s European trading activities
for electricity, gas, coal, oil and CO 2 allowances.
• All of the remaining operating segments have been combined
in accordance with IFRS 8, and are reported as
the “New Markets” segment. New Markets contains the
activities of the Climate & Renewables, Italy, and Russia
market units, as well as the Spain market unit.
Corporate Center/Consolidation contains E.ON AG itself, the
interests held directly by E.ON AG, as well as the consolidation
effects that take place at Group level.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
The expense determined in accordance with IFRS 2 for the
tranches of the E.ON SAR Program and the E.ON Share Performance
Plan in existence in 2009 was €3.4 million (2008:
€0.9 million income).
Detailed, individualized information on compensation can be
found in the Compensation Report on pages 150 through 155.
Under IFRS, segments or material business units that have
been sold or are held for sale must be reported as discontinued
operations. For the 2009 and 2008 fiscal years, this concerns
WKE. The corresponding earnings and cash flow figures as of
December 31, 2009, as well as those for the preceding periods,
have been adjusted for all components of the discontinued
operations (see explanations in Note 4).
Adjusted EBIT is the key measure at E.ON for purposes of
internal management control and as an indicator of a business’s
long-term earnings power. Adjusted EBIT is derived
from income/loss before interest and taxes and adjusted to
exclude certain special items. The adjustments include adjusted
net interest income, net book gains, cost-management and
restructuring expenses, goodwill impairments, as well as other
non-operating income and expenses.
Adjusted net interest income is calculated by taking the net
interest income shown in the income statement and adjusting
it using economic criteria and excluding certain special items,
i.e., the portions of interest expense that are non-operating.
Net book gains are equal to the sum of book gains and losses
from disposals, which are included in other operating income
and other operating expenses. Cost-management and restructuring
expenses are non-recurring in nature. Other non-operating
earnings encompass other non-operating income and
expenses that are unique or rare in nature. Depending on
the case, such income and expenses may affect different line
items in the income statement. For example, effects from the
marking to market of derivatives are included in other operating
income and expenses, while impairment charges on
property, plant and equipment are included in depreciation,
amortization and impairments.
139

140 Notes
Due to the adjustments, the key figures by segment may differ
from the corresponding IFRS figures reported in the Consolidated
Financial Statements.
The following table shows the reconciliation of adjusted EBIT
to net income as reported in the IFRS Consolidated Financial
Statements:
Net Income
€ in millions 2009 2008
Adjusted EBIT 9,646 9,878
Adjusted interest income (net) -2,177 -1,835
Net book gains/losses 4,815 1,324
Restructuring/Cost management
expenses -443 -524
Impairment U.S. Midwest,
Endesa Europa/Viesgo – -3,327
Other non-operating earnings -48 -2,933
Income/Loss (-) from continuing
operations before taxes 11,793 2,583
Income taxes -2,976 -834
Income/Loss (-) from continuing
operations 8,817 1,749
Income/Loss (-) from discontinued
operations, net -172 -128
Net income 8,645 1,621
Attributable to
shareholders of E.ON AG 8,396 1,283
Attributable to minority interests 249 338
Financial Information by Business Segment
€ in millions
Net book gains in 2009 increased by €3.5 billion over the
previous year’s level. This higher amount was attributable primarily
to the disposal of power plants as part of the commitment
to the European Commission, the sale of Thüga to a
consortium of municipal acquirers and the realization of
price gains on the exchange of Gazprom shares for the interest
in the Yuzhno-Russkoye gas field.
Cost-management and restructuring expenses decreased by
approximately €80 million in 2009. As in 2008, the expenses
related primarily to structural measures at German regional
utilities and to costs incurred in connection with the continued
implementation of the new corporate organizational
structure.
Central Europe Pan-European Gas U.K.
2009 2008 2009 2008 2009 2008
External sales 33,456 32,691 15,360 21,272 8,247 8,884
Intersegment sales 7,963 8,444 5,280 6,150 1,850 2,167
Sales 41,419 41,135 20,640 27,422 10,097 11,051
Adjusted EBITDA 6,479 6,266 2,275 3,113 1,080 1,396
Depreciation and amortization -1,601 -1,498 -465 -494 -427 -474
Impairments (-)/Reversals (+) 1 -61 -48 -56 12 -4 –
Adjusted EBIT 4,817 4,720 1,754 2,631 649 922
Earnings from companies accounted for under the equity method 1 292 300 713 644 1 4
Cash provided by operating activities 5,180 4,016 645 2,081 1,562 893
Investments 3,256 3,188 1,610 1,215 897 1,162
Intangible assets and property, plant and equipment 3,039 2,965 1,117 943 864 1,120
Equity investments 2 217 223 493 272 33 42
1 Impairments recognized in adjusted EBIT differ from the relevant amounts reported in accordance with IFRS due to impairments on companies accounted for under the
equity method and impairments on other financial assets, and also due to impairments recognized in non-operating earnings. Under IFRS, impairments on companies
accounted for under the equity method and impairments on other financial assets are included in income/loss (-) from companies accounted for under the equity method
and financial results, respectively. In 2008, the differences resulted primarily from goodwill impairment charges, which are reported in non-operating earnings.
2 In addition to those accounted for under the equity method, acquisitions of equity investments also include acquisitions of fully consolidated companies and investments in
equity holdings that need not be consolidated. Acquisitions of equity investments are reported in the segment to which the acquiring entity is assigned.

Other non-operating earnings were characterized primarily
by the marking to market of derivatives used to protect the
operating businesses from fluctuations in prices. As of December
31, 2009, this marking to market of deriv atives produced a
positive effect in the range of €1.1 billion, as opposed to the
negative effect of approximately €2.2 billion recorded in 2008.
The recognition in income of effects associated with corporate
restructuring that had previously been recognized in
equity also had a positive effect. The positive effects were offset
by the fine of €553 million for alleged market sharing
between E.ON Ruhrgas and GdF Suez, by impairment charges
on securities, financial assets and other assets, and by costs
incurred in connection with a storm in Kentucky at the
beginning of 2009. In 2008, the negative effect on non-operating
earnings of the marking to market of derivatives was
added to primarily by the impairment charge of €1.5 billion
on the goodwill of the U.S. Midwest market unit and by the
impairment charge of €1.8 billion on the goodwill and other
assets of the activities acquired from Enel/Acciona and
Endesa in Italy, Spain and France.
Nordic U.S. Midwest Energy Trading New Markets
Adjusted Net Interest Income
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
€ in millions 2009 2008
Interest and similar expenses (net)
as shown in the Consolidated
Statements of Income -2,249 -1,893
Non-operating interest expense (+)/
income (-) 72 58
Adjusted interest income (net) -2,177 -1,835
An additional adjustment to the internal profit analysis relates
to interest income, which is adjusted on an economic basis.
Adjusted net interest income is calculated by taking the net
interest income shown in the income statement and adjusting
it using economic criteria and excluding certain special (i.e.,
non-operating) items.
Adjusted net interest income fell by €342 million from its
level in 2008, primarily as a result of the increased average
level of net debt during 2009.
Transactions within the E.ON Group are generally effected at
market prices.
Corporate Center/
Consolidation E.ON Group
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
2,491 2,683 1,843 1,880 14,457 13,767 5,889 5,543 74 33 81,817 86,753
857 1,194 – – 26,794 17,993 1,860 319 -44,604 -36,267 – –
3,348 3,877 1,843 1,880 41,251 31,760 7,749 5,862 -44,530 -36,234 81,817 86,753
851 1,112 552 549 961 649 1,544 510 -216 -210 13,526 13,385
-309 -339 -168 -154 -10 -2 -660 -409 -62 -86 -3,702 -3,456
-7 -3 – – -2 -2 -22 -11 -26 1 -178 -51
535 770 384 395 949 645 862 90 -304 -295 9,646 9,878
-7 5 – 21 – – 10 -1 -7 -5 1,002 968
523 835 342 271 1,122 -1,452 1,010 140 -1,330 -46 9,054 6,738
1,104 939 545 650 53 8 1,881 3,305 -146 7,939 9,200 18,406
810 923 545 650 41 7 1,788 2,250 172 138 8,376 8,996
294 16 – – 12 1 93 1,055 -318 7,801 824 9,410
141

142 Notes
Additional Entity-Level Disclosures
External sales by product break down as follows:
Segment Information by Product
€ in millions 2009 2008
Electricity 48,563 47,001
Gas 28,328 35,433
Other 4,926 4,319
Total 81,817 86,753
The following table breaks down external sales (by location
of customers and by location of seller), as well as property,
plant and equipment, by geographic area:
Geographic Segment Information
€ in millions
(34) Compensation of Supervisory Board and
Board of Management
Supervisory Board
Germany
Provided that E.ON’s shareholders approve the proposed dividend
at the Annual Shareholders Meeting on May 6, 2010,
total remuneration to members of the Supervisory Board will
be €4.9 million (2008: €4.5 million).
There were no loans to members of the Supervisory Board
in 2009.
The Supervisory Board’s compensation structure and the
amounts for each member of the Supervisory Board are presented
on pages 148 and 149 in the Compensation Report,
which is part of the Combined Group Management Report.
Additional information about the members of the Supervisory
Board is provided on pages 160 and 161.
E.ON’s customer structure did not result in any major concentration
in any given geographical region or business area.
Due to the large number of customers the Company serves
and the variety of its business activities, there are no individual
customers whose business volume is material compared
with the Company’s total business volume.
Gas is procured primarily from Norway, Russia, Germany, the
Netherlands and Denmark.
Europe (euro area
excluding
Germany) Europe (other) United States Other Total
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
External sales by
location of customer 42,670 42,850 12,032 11,226 25,178 30,738 1,889 1,887 48 52 81,817 86,753
External sales by
location of seller 51,477 50,514 8,648 7,149 19,760 27,156 1,889 1,887 43 47 81,817 86,753
Property, plant and
equipment 19,568 20,018 9,742 8,745 24,251 21,094 7,192 6,572 34 51 60,787 56,480
Board of Management
Total remuneration to members of the Board of Management
in 2009 amounted to €16.1 million (2008: €18.9 million). This
consisted of base salary, bonuses, other compensation elements
and share-based payments.
Total payments to former members of the Board of Management
and their beneficiaries amounted to €9.9 million (2008:
€7.6 million). Provisions of €109.1 million (2008: €110.4 million)
have been established for the pension obligations to former
members of the Board of Management and their beneficiaries.
There were no loans to members of the Board of Management
in 2009.
The Board of Management’s compensation structure and the
amounts for each member of the Board of Management are presented
on pages 150 through 155 in the Compensation Report,
which is part of the Combined Group Management Report.
Additional information about the members of the Board of
Management is provided on page 167.

Declaration of the Board of Management
To the best of our knowledge, and in accordance with applicable
financial reporting principles, the Consolidated Financial
Statements give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Group, and the Group
Management Report, which has been combined with the
management report for E.ON AG, provides a fair review of the
development and performance of the business and the position
of the E.ON Group, together with a description of the
principal opportunities and risks associated with the expected
development of the Group.
Düsseldorf, February 22, 2010
The Board of Management
Bernotat
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Teyssen
Dänzer-Vanotti Feldmann
Schenck
143

144
Corporate Governance Report
Corporate Governance Declaration
(Part of the Combined Group Management Report)
Declaration of Compliance with the German
Corporate Governance Code, made in accordance
with Section 161 of the German Stock Corporation
Act, by the Board of Management and the Supervisory
Board of E.ON AG
The Board of Management and the Supervisory Board hereby
declare that E.ON AG fully complies with the recommendations
contained in the German Corporate Governance Code
(“the Code”), dated June 18, 2009, prepared by the Government
Commission appointed by the German Minister of Justice
and published in the official section of the electronic version
of the Bundesanzeiger.
Furthermore, the Board of Management and the Supervisory
Board declare that E.ON AG has been in compliance with
the recommendations contained in the previous version of
the Code dated June 6, 2008.
Düsseldorf, December 14, 2009
For the Supervisory Board of E.ON AG
Ulrich Hartmann
(Chairman of the Supervisory Board of E.ON AG)
For the Board of Management of E.ON AG
Dr. Wulf H. Bernotat
(Chairman of the Board of Management of E.ON AG)
The declaration is published at www.eon.com and is thus
publicly available to shareholders at all times.
Relevant Information about Management
Practices
Corporate Governance
E.ON views corporate governance as a central foundation of
responsible and value-oriented management, efficient collaboration
between the Board of Management and the Supervisory
Board, transparent disclosures, and appropriate risk
management.
In 2009, the Board of Management and Supervisory Board
paid close attention to E.ON’s compliance with the Code’s
guidelines, particularly in conjunction with the new Code
recommendations dated June 18, 2009. They determined that
E.ON complies not only with all of the Code’s recommendations
but also with all of its suggestions.
Transparent Management
Transparency is a high priority of E.ON AG’s Board of Management
and Supervisory Board. Our shareholders, all capital
market participants, financial analysts, shareholder associations,
and the media regularly receive up-to-date information
about the situation of, and any material changes to, the Company.
We primarily use the Internet to help ensure that all
investors have equal access to comprehensive and timely
information about the Company.
E.ON AG issues reports about its situation and earnings by
the following means:
• Interim Reports (quarterly)
• Annual Report
• Annual press conference
• Telephone conferences held on release of the Interim
and Annual Reports
• Numerous events for financial analysts in and outside
Germany.
A financial calendar lists the dates on which the Company’s
financial reports are released.
In addition to the Company’s periodic financial reports, the
Company issues ad-hoc statements when events or changes
occur at E.ON AG that could have a significant impact on the
price of E.ON stock.

Pursuant to Section 10 of the German Securities Prospectus
Law, E.ON is required to publish an annual document that
contains all its ad-hoc and financial releases of the previous
12 months.
The financial calendar, ad-hoc statements, and annual document
are available on the Internet at www.eon.com.
Directors’ Dealings
Persons with executive responsibilities, in particular members
of E.ON AG’s Board of Management and Supervisory Board
and persons closely related to them, must disclose their dealings
in E.ON stock or in related financial instruments pursuant
to Section 15a of the German Securities Trading Act. Such
dealings that took place in 2009 have been disclosed on the
Internet at www.eon.com. As of December 31, 2009, there
was no ownership interest subject to disclosure pursuant to
Item 6.6 of the Code.
Integrity
Our actions are grounded in integrity and a respect for the
law. In 2009, the Board of Management issued a revised Code
of Conduct which emphasizes that all employees must comply
with laws and regulations and with company policies. These
relate to dealing with business partners, third parties, and
government institutions, particularly with regard to antitrust
law, the granting and accepting of benefits, the involvement
of intermediaries, and the selection of suppliers and service
providers. Other rules address issues such as the avoidance
of conflicts of interest (such as the prohibition to compete,
secondary employment, material financial investments) and
handling company information, property, and resources.
The policies and procedures of our Compliance Organization
ensure the investigation, evaluation, cessation, and punishment
of reported violations by the appropriate Compliance
Officers and the E.ON Group’s Chief Compliance Officer. Violations
of the Code of Conduct can also be reported anonymously
(for example, by means of a whistleblower report). The
most recent version of the Code of Conduct is published on
the Internet at www.eon.com.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Description of the Functioning of the Board of
Management and Supervisory Board and of the
Composition and Functioning of their Committees
Board of Management
The E.ON Board of Management consists of five members
and has one Chairperson. Board of Management members
may not be older than 65.
The Board of Management has in place policies and procedures
for the business it conducts. It manages the Company’s
businesses, with all its members bearing joint responsibility
for its decisions. It establishes the Company’s objectives, sets
its fundamental strategic direction, and is responsible for
corporate policy and Group organization.
The Board of Management regularly reports to the Supervisory
Board on a timely and comprehensive basis on all
relevant issues of corporate planning, business development,
risk assessment, and risk management. It also submits the
Group’s investment, finance, and personnel plan for the coming
fiscal year as well as the medium-term plan to the Supervisory
Board for its approval at the last meeting of each
financial year.
The Chairperson of the Board of Management informs, without
undue delay, the Chairperson of the Supervisory Board
of important events that are of fundamental significance in
assessing the Company’s situation, development, and management
and of any defects that have arisen in the Company’s
monitoring systems. Transactions and measures requiring
the Supervisory Board’s approval are also submitted to the
Supervisory Board without delay.
Members of the Board of Management are also required to
promptly report conflicts of interest to the Executive Committee
of the Supervisory Board and to inform the other
members of the Board of Management. Members of the Board
of Management may only assume other corporate positions,
particularly appointments to the supervisory boards of non-
Group companies, with the consent of the Executive Committee
of the Supervisory Board. There were no conflicts of
interest involving members of the Board of Management in
2009. Any material transactions between the Company and
members of the Board of Management, their relatives,
or entities with which they have close personal ties require
the consent of the Executive Committee of the Supervisory
Board. No such transactions took place in 2009.
145

146 Corporate Governance Report
We have established a Disclosure Committee to support
the Board of Management and to be responsible for correct
and timely financial disclosures. Its members come from
various departments of E.ON AG and are, owing to their functions,
particularly suited for the committee’s tasks.
Supervisory Board
The Supervisory Board has 20 members and, in accordance
with the German Codetermination Act, is composed of an
equal number of shareholder and employee representatives.
The shareholder representatives are elected by the shareholders
at the Annual Shareholders Meeting. The employee
representatives are elected by the employees. The Supervisory
Board oversees the Company’s management and advises
the Board of Management. It has established policies and
procedures for itself and its committees. It holds four regular
meetings in each financial year.
In the event of a tie vote on the Supervisory Board, another
vote is held; if there is still a tie, the Chairperson casts the
tie-breaking vote. As a general rule, Supervisory Board members
should not be older than 70.
In order to ensure that the Supervisory Board’s advice and
oversight functions are conducted on an independent basis,
no more than two former members of the Board of Management
may be members of the Supervisory Board. Supervisory
Board members may not hold a corporate office or perform
advisory services for the Company’s key competitors. Supervisory
Board members are required to disclose to the Supervisory
Board any conflicts of interest, particularly if a conflict
arises from their advising, or holding a corporate office with,
one of E.ON’s customers, suppliers, creditors, or other business
partners. The Supervisory Board is required to report
any conflicts of interest to the Annual Shareholders Meeting
and to describe how the conflicts have been dealt with.
Any material conflict of interest of a non-temporary nature
should result in the termination of a member’s appointment
to the Supervisory Board. There were no conflicts of interest
involving members of the Supervisory Board in 2009. Any
consulting or other service agreements between the Company
and a Supervisory Board member require the Supervisory
Board’s consent. No such agreements existed in 2009.
The Report of the Supervisory Board, which is on pages
156–159, contains more information about these matters.
Pursuant to its policies and procedures, the Supervisory
Board has formed the following committees:
The Mediation Committee required by Section 27, Paragraph 3
of the Codetermination Act consists of two shareholder-
rep resentative members and two employee-representative
members. This committee is responsible for recommending
to the Super visory Board potential candidates for the Board
of Management if the first vote does not yield the necessary
two-thirds majority of votes of Supervisory Board members. It
therefore only meets when necessary.
The Executive Committee consists of the four members of
the above-named committee. It prepares the meetings of the
Supervisory Board and advises the Board of Management on
matters of general policy relating to the Company’s strategic
development. In urgent cases (in other words, if waiting
for the Supervisory Board’s prior approval would materially
prejudice the Company), the Executive Committee acts on
the full Supervisory Board’s behalf. In addition, a key Executive
Committee task is to prepare the Supervisory Board’s personnel
decisions and resolutions for setting the total compensation
of individual Board of Management members within
the meaning of Section 87 of the German Stock Corporation
Act. Furthermore, it is responsible for the conclusion, alteration,
and termination of the service agreements of Board of
Management members and for presenting the Supervisory
Board with a proposal for a resolution on the Board of Management’s
compensation plan including key elements of
Board of Management service agreements. It also deals with
corporate-governance matters and reports to the Supervisory
Board at least once a year on the status and effectiveness of,
and possible ways of improving, the Company’s corporate
governance.
The Audit and Risk Committee consists of four members who
have special knowledge in the field of accounting and/or business
administration. In line with the Code’s mandates, the
Chairperson has extensive knowledge and experience in applying
accounting principles and/or in international business
control processes. The Audit and Risk Committee’s main task
is to monitor the Company’s accounting, including the

accounting process, the effectiveness of the internal control
system, internal risk management, and the internal audit
system, compliance, and the independent audit. The committee’s
tasks relating to the independent audit consist primarily
of ensuring the independence of the independent auditor,
assigning the auditing task to the independent auditor, establishing
auditing priorities, concluding the agreement regarding
the independent auditor’s fees, and establishing what
additional non-auditing services are to be performed by the
independent auditor. The Audit and Risk Committee also
prepares the Supervisory Board’s decision on the approval of
the Financial Statements of E.ON AG and the Consolidated
Financial Statements. It also examines the Company’s quarterly
Interim Reports and discusses the audit review of the
Interim Reports with the independent auditor. The effectiveness
of the internal control mechanisms for the accounting
process used at E.ON AG and the market unit lead companies
is tested on a regular basis by our Internal Audit division. In
addition, the Audit and Risk Committee prepares the proposal
on the selection of the Company’s independent auditor for
the Annual Shareholders Meeting. In order to ensure the
auditor’s independence, the Audit and Risk Committee secures
a statement from the proposed auditors detailing any facts
that could lead to the audit firm being excluded for independence
reasons or otherwise conflicted.
As part of its audit responsibilities, the independent auditor
agrees to:
• promptly inform the Chairperson of the Audit and Risk
Committee should any such facts arise during the course
of the audit
• promptly inform the Supervisory Board of anything arising
during the course of the audit that is of relevance to the
Supervisory Board’s duties
• inform the Chairperson of the Audit and Risk Committee
of, or to note in the audit report, any facts that arise
during the audit that contradict the statements submitted
by the Board of Management or Supervisory Board in
connection with the Code.
The Finance and Investment Committee consists of six
members. It advises the Board of Management on all issues
of corporate finance and investment planning. It decides on
behalf of the Supervisory Board on the approval of the acquisition
and disposition of companies, equity interests, and
parts of companies, as well as on finance measures whose
value exceeds 1 percent of the equity listed in the Company’s
most recent Consolidated Balance Sheet. If the value of any
such transactions or activities exceeds 2.5 percent of the equity
listed in the most recent Consolidated Balance Sheet, the
Finance and Investment Committee prepares the Supervisory
Board’s decision on such matters.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
The Nomination Committee consists of three shareholder
representative members. Its Chairperson is the Chairperson
of the Supervisory Board. Its task is to recommend to the
Supervisory Board suitable candidates for election to the
Supervisory Board by the Annual Shareholders Meeting.
All committees meet at regular intervals and when specific
circumstances require it under their policies and procedures.
The Report of the Supervisory Board contains information
about how often the committees actually met (on page 158)
and their composition (on page 161).
Shareholders and Annual Shareholders Meeting
E.ON AG shareholders exercise their rights and vote their
shares at the Annual Shareholders Meeting. The Company’s
financial calendar, which is published in the Annual Report,
in the quarterly Interim Reports, and on the Internet at
www.eon.com, regularly informs shareholders about important
Company dates.
At the Annual Shareholders Meeting, shareholders may vote
their shares themselves, through a proxy of their choice,
or through a Company proxy who is required to follow the
shareholder’s voting instructions.
As stipulated by German law, the Annual Shareholders
Meeting votes to select the Company’s independent auditor.
147

148 Corporate Governance Report
Compensation Report
(Part of the Combined Group Management Report)
This compensation report describes the compensation plan
and the individual compensation for E.ON AG’s Supervisory
Board and Board of Management. It applies the regulations
of the German Commercial Code amended to reflect the
Management Board Compensation Disclosure Law, the regulations
of the German Stock Corporation Act including the
Act on the Appropriateness of Management Board Compensation,
and the principles of the German Corporate Governance
Code (“the Code”).
Compensation Plan for Members of the Supervisory
Board
The compensation of Supervisory Board members is determined
by the Annual Shareholders Meeting and governed by
E.ON AG’s Articles of Association. In accordance with German
law and the Code’s recommendations, the compensation
plan takes into consideration Supervisory Board members’
responsibilities and scope of duties as well as the Company’s
financial situation and business performance. In accordance
with the Code, Supervisory Board members receive fixed
annual compensation as well as two variable, performancebased
compensation components. The short-term component
is linked to dividends. The long-term component is linked
to the three-year average of the E.ON Group’s consolidated
net income.
The three-for-one stock split that took place in 2008 did not
affect the Supervisory Board’s compensation plan. The wording
of the Articles of Association was amended to neutralize
the effects of the stock split.
Fixed compensation: in addition to being reimbursed for their
expenses including the value-added tax due on their compensation,
Supervisory Board members receive fixed compensation
of €55,000.00 for each financial year.
Short-term variable compensation: in addition, Supervisory
Board members receive variable compensation of €345.00
for each 1 euro cent of per-share dividend paid out to shareholders
in excess of 3 ⅓ euro cents per no-par-value share for
the relevant financial year.
Long-term variable compensation: furthermore, Supervisory
Board members receive variable compensation of €210.00 for
each 1 euro cent of the three-year average of the E.ON Group’s
consolidated net income per share (attributable to shareholders
of E.ON) in excess of 76 ⅔ euro cents. To adjust for the
stock split, net income per share for 2007 will be divided by
three before being factored into the three-year average.
Individuals who were members of the Supervisory Board or
any of its committees for less than an entire financial year
receive pro-rata compensation for each full or partial month
of membership. Fixed compensation is payable after the
end of the financial year. Variable compensation components
are payable after the Annual Shareholders Meeting, which
votes to formally approve the acts of the members of the Supervisory
Board in the previous financial year.
The Chairman of the Supervisory Board receives a total of
three times the above-mentioned compensation; the Deputy
Chairman and every chairman of a Supervisory Board committee
receive a total of twice the above-mentioned amount;
and each committee member receives a total of one-and-ahalf
times the above-mentioned compensation.
Supervisory Board members are paid an attendance fee of
€1,000.00 per day for meetings of the Supervisory Board or its
committees. Finally, the Company has taken out D&O insurance
for the benefit of Supervisory Board members to cover
the statutory liability related to their Supervisory Board
duties. If an insurance claim is granted, this insurance includes
a deductible equal to 50 percent of a Supervisory Board
member’s annual fixed compensation. In accordance with the
Code’s recommendations, effective June 16, 2010, the deductible
will be increased to 10 percent of a damage claim but with
a maximum cumulative annual cap of 150 percent of a member’s
annual fixed compensation.
Fixed annual compensation of €55,000.00 is intended to
reflect the independence necessary for the Supervisory Board
to fulfill its supervisory function. In addition, there are a
number of duties that Supervisory Board members must perform
irrespective of the Company’s financial performance.
For this reason, there should be minimum guaranteed compensation
even when the Company faces difficult times,

since in such times the Supervisory Board’s work is often
particularly challenging. On the other hand, dividend-based
compensation is designed to ensure that the Supervisory
Board’s compensation interests are, to some extent, aligned
with shareholders’ return expectations. Finally, since another
part of variable compensation is linked to the three-year
average of consolidated net income, the Supervisory Board’s
compensation also contains a component that is related to
the Company’s long-term performance.
Compensation of the Supervisory Board 2009
€
Fixed
compensation
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Compensation of the Members of the Supervisory
Board
Assuming that the Annual Shareholders Meeting on May 6,
2010, approves the proposed dividend, the total compensation
of the members of the Supervisory Board will amount to
€4.9 million (2008: €4.5 million).
No loans were outstanding or granted to Supervisory Board
members in the 2009 financial year. The members of the
Supervisory Board are listed on pages 160–161.
Short-term
variable
compensation
Long-term
variable
compensation
Supervisory
Board
compensation
from affiliated
companies Total
Ulrich Hartmann 165,000 151,800 136,220 – 453,020
Hubertus Schmoldt 110,000 101,200 90,813 – 302,013
Werner Bartoschek 82,500 75,900 68,110 77,000 303,510
Sven Bergelin 55,000 50,600 45,407 69,980 220,987
Gabriele Gratz 82,500 75,900 68,110 102,000 328,510
Jens P. Heyerdahl d.y. (since June 1, 2009) 32,083 29,517 26,487 – 88,087
Wolf-Rüdiger Hinrichsen 55,000 50,600 45,407 – 151,007
Ulrich Hocker 55,000 50,600 45,407 – 151,007
Prof. Dr. Ulrich Lehner 82,500 75,900 68,110 – 226,510
Bård Mikkelsen (until May 31, 2009) 22,917 21,083 18,919 – 62,919
Erhard Ott 82,500 75,900 68,110 35,750 262,260
Hans Prüfer 82,500 75,900 68,110 – 226,510
Klaus Dieter Raschke 82,500 75,900 68,110 44,480 270,990
Dr. Walter Reitler 55,000 50,600 45,407 35,750 186,757
Dr. Henning Schulte-Noelle 82,500 75,900 68,110 – 226,510
Dr. Karen de Segundo 55,000 50,600 45,407 – 151,007
Dr. Theo Siegert 110,000 101,200 90,813 – 302,013
Prof. Dr. Wilhelm Simson 55,000 50,600 45,407 – 151,007
Dr. Georg Freiherr von Waldenfels 55,000 50,600 45,407 – 151,007
Werner Wenning 82,500 75,900 68,110 – 226,510
Hans Wollitzer 82,500 75,900 68,110 56,950 283,460
Subtotal 1,567,500 1,442,100 1,294,091 421,910 4,725,601
Attendance fees and meeting-related
reimbursements 221,107
Total 4,946,708
149

150 Corporate Governance Report
Compensation Plan for Members of the Board of
Management
The Act on the Appropriateness of Management Board Compensation
(known by its German abbreviation, “VorstAG”)
took effect on August 5, 2009. It changes, among other things,
parts of the German Stock Corporation Act (known by its
German abbreviation, “AktG”). The version of the Code dated
June 18, 2009, incorporates VorstAG’s provisions and in some
cases defines them in greater detail.
The Supervisory Board and the Supervisory Board’s Executive
Committee thoroughly discussed VorstAG at their meetings
on August 10 and December 14, 2009, and August 10 and
December 4, 2009, respectively, and determined the modifications
that were necessary to the Board of Management’s
compensation plan, which is described below.
Components of the Compensation Plan
The compensation of Board of Management members is
composed of a fixed annual base salary, an annual bonus,
and a long-term variable component.
These components account for approximately the following
percentages of total compensation:
• Base salary 30%
• Annual bonus (with 100% target attainment) 40%
• Long-term variable (value at issuance) 30%
Any compensation received for work done in the Company’s
interest (other directorships at Group companies) is set off
against the bonus or transferred to the Company.
Annual Bonus
In 2009, the annual bonus for E.ON Board of Management
members was subject to the same general rules as in previous
years.
The amount of the bonus is determined by the degree to
which certain company and individual performance targets
are attained. Board of Management members who fully
attain their performance target receive the target bonus
agreed to in their contracts. The maximum bonus that can
be attained is 200 percent of the target bonus. The minimum
bonus paid is equal to 30 percent of the target bonus.
The target-setting system consists of 70 percent company
performance targets and 30 percent individual performance
targets.
The company performance targets reflect, in equal shares,
the return on capital employed (“ROCE”) and operating
performance (as measured by adjusted EBIT) during the previous
financial year.
The target for the ROCE portion of the annual bonus is equal
to the prior-year weighted-average cost of capital plus a
spread, stipulated by the Supervisory Board, to increase leverage.
The premium is currently two percentage points. If
E.ON’s actual ROCE is equal to the ROCE target, this constitutes
100-percent attainment. If it is three percentage points or
more lower, this constitutes zero-percent attainment. If it is
three percentage points or more higher, this constitutes
200-percent attainment. Linear interpolation is used to translate
intermediate ROCE figures into percentages.
The target for the adjusted EBIT portion of the annual bonus
is the above-described target ROCE multiplied by the prior-year
capital employed. If E.ON’s actual adjusted EBIT is equal to
the adjusted EBIT target, this constitutes 100-percent attainment.
If it is twice as high, this constitutes 200-percent achievement.
If it is zero, this constitutes zero-percent attainment.
Linear interpolation is used to translate intermediate adjusted
EBIT figures into percentages.
The individual portion of the annual bonus is calculated according
to targets agreed on in writing and/or key task areas.

Changes to the Annual Bonus Mechanism
Effective 2010
Section 87 of the VorstAG version of the AktG requires that a
management board’s overall compensation package must
be geared towards the company’s long-term business performance.
To implement this requirement, the Supervisory
Board and Board of Management members agreed that the
Board of Management’s annual bonus mechanism would
adopt a multi-year performance metric effective 2010. This
modification affects the company performance portion of
the annual bonus. Only in the case of Dr. Bernotat was no
contract change made because his service on the Board of
Management terminates at the close of April 30, 2010.
In the case of the other Board of Management members, only
half of the company performance portion of the annual
bonus will, in the future, be a single-year performance metric;
namely, the Company’s results for the previous financial
year. As in the past, this portion of the annual bonus will be
calculated and paid out based on the attainment of company
performance targets for the previous financial year. It makes
sense to retain a single-year performance metric in the
annual bonus because the Company’s annual results continue
to be a measure of its performance and serve as the basis
for the dividend payout to shareholders.
The other half of the company performance portion of the
annual bonus will, in the future, be a three-year performance
metric; namely, the average of the percentages of target
attainment of the company performance portion for the previous
financial year and the two subsequent years. This portion
of the annual bonus will be calculated and paid out based on
the attainment of company performance targets for the previous
financial year. However, this portion of the bonus is
preliminary and is subject to partial repayment if company
performance targets are not attained in the subsequent
years. This portion of the annual bonus is definitively set at the
end of the two-year period following the baseline year. If the
three-year average of the achievement of company performance
targets is higher than the preliminary calculation for
the one-year period, then Board of Management members
receive an additional bonus payment (bonus). If it is lower, they
are required to pay back the resulting difference or have it
deducted from their next bonus (malus or negative bonus).
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
In addition, the Supervisory Board and the Board of Management
members (with the exception of Dr. Bernotat, for the
reasons explained above) agreed that in the future the Supervisory
Board will determine the degree to which members
have met the targets of the individual performance portion
of their annual bonus. In making this determination, the
Supervisory Board will pay particular attention to the criteria
of Section 87 of the AktG and the Code.
As a result of these changes, effective 2010 more than 60 percent
of the Board of Management’s variable compensation
(which consists of the annual bonus and long-term variable
compensation) is based on long-term performance metrics,
thereby ensuring that this variable compensation is sustainable.
The sustainability requirement is also reflected by the
fact that the Supervisory Board may consider the criteria of
Section 87 of the AktG and the Code when it determines the
individual performance portion of the annual bonus.
Long-Term Variable Compensation
The long-term variable compensation component that Board
of Management members receive is stock-based compensation
under the E.ON Share Performance Plan. The Supervisory
Board decides each year how many performance rights are
allocated.
To ensure that this compensation is sustainable within the
meaning of VorstAG, beginning in 2010, all performance
rights allocated under the plan will have a vesting period of
four years, not three years as previously.
151

152 Corporate Governance Report
The value of the performance rights allocated under the plan
is based on the performance of E.ON’s stock price, both in
absolute terms and relative to the Dow Jones STOXX Utility
Index (Return EUR). This compensation is designed to reward
Board of Management members for their contributions to
increasing the Company’s shareholder value and to promote
E.ON’s long-term business performance. This variable pay
component, which combines incentives for long-term growth
with a risk component, effectively aligns management’s and
shareholders’ interests.
Note 11 to the Consolidated Financial Statements contains a
detailed description of stock-based compensation.
Contractual Non-Cash Compensation
Under their contracts, Board of Management members receive
non-cash compensation in the form of a chauffeur-driven
company car for business and personal use, telecommunications
equipment for business and personal use, appropriate
accident insurance coverage, and an annual medical examination.
In addition, the Company has taken out D&O insurance
for the benefit of Board of Management members to cover the
statutory liability related to their Board of Management
duties. If an insurance claim is granted, this insurance includes
a deductible equal to 25 percent of a Board of Management
member’s annual fixed compensation. In accordance with
VorstAG, effective June 16, 2010, the deductible will be increased
to 10 percent of a damage claim but with a maximum cumulative
annual cap of 150 percent of member’s annual fixed
compensation.
Settlement Cap for Premature Termination of Board
of Management Duties
In accordance with the Code, the service agreements of all
Board of Management members have a settlement cap. Under
the cap, payments to a Board of Management member for a
premature termination of Board of Management duties without
significant cause within the mean ing of Section 626 of
the German Civil Code may not exceed the value of two years’
total compensation or the total compensation for the remainder
of the member’s service agreement, whichever is less.
Dr. Bernotat’s service agreement does not need to have a
settlement cap because he is retiring as planned effective at
the close of April 30, 2010; there is therefore no possibility
of a settlement for premature contract termination.
Change-in-Control Clauses
The Company had change-in-control agreements with all Board
of Management members in the 2009 financial year. In the
event of a premature loss of a Board of Management position
due to a change-in-control event, Board of Management
members are entitled to severance and settlement payments.
The change-in-control agreements stipulate that a change
in control exists in three cases: a third party acquires at least
30 percent of the Company’s voting rights, thus triggering
the automatic requirement to make an offer for the Company
pursuant to Germany’s Stock Corporation Takeover Law; the
Company, as a dependent entity, concludes a corporate agreement;
the Company is merged with another company. A
Board of Management member is entitled to severance and
settlement pay if, within 12 months of the change in control,
his or her service agreement is terminated by mutual consent,
expires, or is terminated by the Board member (in the latter
case, however, only if his or her position on the Board is materially
affected by the change in control).

In accordance with the Code, the settlement payments for
Board of Management members would be equal to 150 percent
of the settlement cap; that is, the capitalized amount of
three years’ total annual compensation (annual base salary,
annual target bonus, and other compensation). To reflect discounting
and setting off of payment for services rendered
to other companies or organizations, payments will be reduced
by 20 percent. If a Board of Management member is above
the age of 53, this 20 percent reduction is diminished according
to an age-related schedule.
Pension Entitlements
Following the end of their service for the Company, Board of
Management members are entitled to receive pension payments
in three cases: departure on and after reaching the
standard retirement age (60 years); departure due to permanent
incapacitation; departure due to their service agreement
being terminated prematurely or not extended by the
Company (a so-called third pension situation).
In the first two cases (reaching the standard retirement age,
permanent incapacitation), pension payments begin when
a member departs the Board of Management for one of these
reasons; annual pension payments are equal to between 50 percent
and 75 percent of the member’s last annual base salary.
In the third case, annual pension payments also range
between 50 percent and 75 percent of the last annual base
salary and begin when the member reaches the age of 60.
Members who depart the Board of Management in this way
receive a reduced pension as a bridge payment from the
date of their departure until they reach the age of 60 if they
had, at the time of their departure, been in a Top Management
position in the E.ON Group for more than five years and
if the termination or non-extension of their service agreement
is not due to their misconduct or rejection of an offer
of extension that is at least on a par with their existing
service agreement. The amount of the bridge payment is also
initially between 50 percent and 75 percent of the last
annual base salary based on the length of service on Board
of Management. This amount is then reduced by the ratio
between the actual and potential length of service in a Top
Management position in the E.ON Group until the standard
retirement age. In contrast to this, the service agreements the
Company concluded before the 2006 financial year do not
include reductions to the bridge payment.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
If a recipient of pension payments (or bridge payments) is
entitled to pension payments or bridge payments stemming
from earlier employment, 100 percent of these payments
will be set off against his or her pension or bridge payments
from the Company. In addition, 50 percent of income from
other employment will be set off against bridge payments.
Pension payments are adjusted on an annual basis to reflect
changes in the German consumer price index.
Following the death of an active or former Board of Management
member, a reduced amount of his or her pension is
paid as a survivor’s pension to the family. Widows and widowers
are entitled to lifelong payment equal to 60 percent of
the pension a Board of Management member received on
the date of his or her death or would have received had he
or she entered retirement on this date. This payment is terminated
if a widow or widower remarries. The children or
dependents of a Board of Management member who have not
reached the age of 18 are entitled, for the duration of their
education or professional training until they reach a maximum
age of 25, to an annual payment equal to 20 percent of
the pension the Board of Management member received
or would have received on the date of his or her death. Surviving
children benefits granted before 2006 deviate from this
model and are equal to 15 percent of a Board of Management
member’s pension. If, taken together, the survivor’s pensions of
the widow or widower and children exceed 100 percent of a
Board of Management member’s pension, the pensions paid to
the children are proportionally reduced by the excess amount.
153

154 Corporate Governance Report
The following table provides an overview of the current
pension obligations to Board of Management members. The
table also includes the additions to provisions for pensions
for each member. These additions to provisions for pensions
are not paid compensation but valuations calculated in
accordance with IFRS.
Pensions of the Board of Management Members
Compensation of the Members of the Board of
Management
Board of Management compensation was not adjusted in 2009.
At its meeting on March 9, 2010, the Supervisory Board determined
that the Board of Management’s compensation is
appropriate. In accordance with VorstAG’s provisions, the
Supervisory Board made this determination in particular by
means of horizontal and vertical comparisons. On the one
Compensation of the Board of Management 2009
€
Fixed annual
compensation
Current pension entitlement
at December 31, 2009
As a percentage of
annual base salary (€) (€)
Annual
bonus
Other
compensation
Additions to provisions for
pensions in 2009
Fair value of
4th tranche
of performance
rights Total
Thereof interest
cost (€)
Dr. Wulf H. Bernotat 70 868,000 569,708 569,708
Dr. Johannes Teyssen 70 700,000 700,668 366,123
Christoph Dänzer-Vanotti 1 50 375,000 943,331 153,945
Lutz Feldmann 60 450,000 346,307 188,280
Dr. Marcus Schenck 1 50 375,000 387,435 40,577
1 Pension entitlement not yet vested.
hand, the Board of Management’s compensation was subject
to a market comparison with compensation at companies of
similar size and in similar industries. On the other, it was
compared with compensation at all other levels of hierarchy
in the E.ON Group.
The total compensation of the members of the Board of
Management in the 2009 financial year amounted to
€16.1 million (2008: €18.9 million). Individual members of
the Board of Management were paid the following total
compensation:
Number of 4th
tranche
performance
rights granted
Dr. Wulf H. Bernotat 1,240,000 2,130,000 45,989 1,049,375 4,465,364 48,336
Dr. Johannes Teyssen 1,000,000 1,710,000 83,564 835,618 3,629,182 38,490
Christoph Dänzer-Vanotti 750,000 1,240,000 14,879 621,861 2,626,740 28,644
Lutz Feldmann 750,000 1,240,000 42,237 621,861 2,654,098 28,644
Dr. Marcus Schenck 750,000 1,300,000 37,735 621,861 2,709,596 28,644
Total 4,490,000 7,620,000 224,404 3,750,576 16,084,980 172,758

The remaining other compensation of the members of the
Board of Management consists primarily of benefits in kind
from the personal use of company cars and reimbursement
for relocation costs.
The performance rights granted in 2009 as the fourth tranche
of the E.ON Share Performance Plan were quoted at their
fair value of €21.71 per right on the date of their issuance
and were included in Board of Management members’ total
compensation. This fair value is determined by means of a
recognized option-pricing model (a Monte Carlo simulation
based on a two-dimensional Black-Scholes model).
For purposes of internal communications between the Board
of Management and the Supervisory Board, the target value is
used instead of the fair value. The target value is equal to the
cash payout amount of each performance right if at the end
of the vesting period E.ON stock maintains its price and its
performance equals the performance of the benchmark index.
In 2009, the target value of the rights issued was €1.35 million
for the Chairman of Board of Management, €1.075 million for
the Vice Chairman of Board of Management, and €0.8 million
for regular Board of Management members.
The German Commercial Code (Section 314, Paragraph 1,
Item 6a, Sentence 9) requires supplemental disclosure, by year,
of the Company’s expenses for all tranches granted in 2009
and in previous years and for tranches existing in 2009. The
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
following expenses in accordance with IFRS 2 were recorded
for the 2009 financial year: Dr. Bernotat €0.9 million, Dr. Teyssen
€0.7 million, Mr. Dänzer-Vanotti €0.6 million, Mr. Feldmann
€0.6 million, and Dr. Schenck €0.6 million.
Additional detailed information about E.ON AG’s stock-based
compensation program can be found in Note 11 to the Consolidated
Financial Statements.
No loans were outstanding or granted to members of the
Board of Management in 2009 financial year.
Page 167 contains additional information about the members
of the Board of Management.
Payments Made to Former Members of the Board
of Management
Total payments made to former Board of Management members
and to their beneficiaries amounted to €9.9 million in
2009 (2008: €7.6 million).
Provisions of €109.1 million (2008: €110.4 million) have been
provided for pension obligations to former Board of Management
members and their beneficiaries.
155

156
Supervisory Board and Board of Management
Report of the Supervisory Board
In the 2009 financial year, the Supervisory Board carefully performed
all its duties and obligations under law, the Articles
of Association, and its own policies and procedures. It thoroughly
examined and discussed the Company’s situation.
We advised the Board of Management regularly about the
Company’s management and continually monitored the
Board of Management’s activities. We were closely involved
in all business transactions of key importance to the Company
and discussed these transactions thoroughly based on
the Board of Management’s reports. At the Supervisory
Board’s four regular meetings and three extraordinary meetings
in 2009, we addressed in depth all issues relevant to
the Company. In addition, a strategy meeting was held at which
we and the Board of Management thoroughly discussed
possible market developments, fundamental issues, and the
E.ON Group’s future strategic position. The Board of Management
regularly provided us with timely and comprehensive
information in both written and oral form. We discussed
the written and oral reports thoroughly at our meetings. The
Supervisory Board agreed to the resolutions proposed by the
Board of Management after examining and discussing them.
Furthermore, the Chairman of the Supervisory Board was in
regular contact with the Board of Management throughout
the financial year and was informed about the current operating
performance of the major Group companies, significant
business transactions, and the development of key financial
figures.
Strategic Direction, Planned Acquisitions, and
Portfolio Optimization
The Board of Management reported continually on the further
implementation of the package of strategic initiatives for
the further development of the E.ON Group. In this context,
the Board of Management provided us with comprehensive
information about PerformtoWin, an efficiency-enhancement
program launched prior to the outbreak of the global financial
and economic crisis. Its objective is to achieve lasting
improvements totaling €1.5 billion by 2011. To implement the
program in a socially responsible manner, management and
employee representatives agreed on a comprehensive plan
to address job-related issues. This program’s initial focus was
on E.ON’s power and gas business in Germany, the United
Kingdom, and Scandinavia. Since October 2009, it also includes
the Climate & Renewables, Energy Trading, Russia, Italy, and
Spain market units. The improvement initiatives include
drawing on the expertise of Energy Trading and Pan-European
Gas to enhance fuel-procurement efficiency for E.ON power
stations, improving maintenance procedures for our wind farms,
and reorganizing retail operations in Italy.
In addition, the Board of Management reported in detail
about various measures to optimize E.ON’s portfolio. In particular,
these measures included the asset-swap agreement
with Russia’s Gazprom successfully concluded in October 2009
under which E.ON acquired a stake in Yuzhno Russkoye, a
natural gas field in Siberia. The Board of Management also
informed us in detail about the sale, also concluded in October
2009, of the Thüga Group, until then part of the Pan-European
Gas market unit, to Integra/Kom9, a consortium of municipal
utilities. In addition, the Board of Management kept us
informed about the unwind, completed in July 2009, of longterm
power supply contracts, originally concluded in 1998
between E.ON U.S. subsidiary Western Kentucky Energy and
Big Rivers, a municipal utility.

Energy Policy and Regulatory Environment and
Proceedings
The Board of Management informed us about developments
in the policy and regulatory environment of the electricity
and gas industries. In this context, we dealt extensively with
the relevant legislative and regulatory processes and their
effects on our markets and the E.ON Group. Key topics were
the current state of negotiations on the European Commission’s
third package of internal energy market legislation
(including proposals for unbundling network operations) as
well as the incentive regulation scheme that took effect in
Germany in January 2009 and the resulting consents process
for network charges conducted by the German Federal Network
Agency. We also discussed the legal disputes relating to
the construction of a coal-fired generating unit in Datteln
and the overall investment conditions for the construction of
new power plants in Germany.
In addition, the Board of Management provided detailed
reports about the gas dispute between Russia and Ukraine in
early 2009 and the resulting curtailment of natural gas deliveries
from Russia and about energy-policy developments in
Sweden regarding the construction of nuclear power stations.
The E.ON Group’s agreement to the European Commission’s
commitment decision on the divestment of generating capacity
and the ultrahigh-voltage transmission system was
again a focus of our discussions in 2009. The Board of Management
reported to us regularly and comprehensively about
the process of divesting about 5,000 megawatts of generating
capacity in Germany and E.ON’s ultrahigh-voltage transmission
system. By the end of the financial year, the commitment
decision was almost completely implemented.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
The Board of Management also informed us regularly and in
detail about ongoing antitrust proceedings in the electricity
and gas sectors. In particular, we discussed the European
Commission’s investigation of E.ON Ruhrgas on allegations
of a market-sharing agreement with Gaz de France and the
related fine proceedings as well as the investigation of E.ON
Ruhrgas in conjunction with network usage and the agreement
reached with the European Commission.
Financial Situation and Medium-Term Plan
We discussed in detail the financial situation of the major
Group companies in relation to developments in European
and global energy markets, about which the Board of Management
continually informed us. We also discussed thoroughly
the E.ON Group’s medium-term plan for the period 2010–2012,
including the investment program, its financing, and Groupwide
human resources. In this context, the Board of Management
explained the analyses regarding the enhancement
of the Group’s performance as well as structural measures.
Furthermore, the Board of Management informed us about
the scope of E.ON’s use of derivative financial instruments.
The global financial and economic crisis, which also affected
the energy industry and thus the E.ON Group, continued to
be a key topic of our discussions. The Board of Management
informed us in detail about the effects of the crisis on E.ON’s
financial situation and the various necessary measures
(including adjustments to investment plans) to maintain the
Group’s ability to act in the near term and discussed these
measures with us.
157

158 Report of the Supervisory Board
Corporate Governance
We also regularly discussed the further development of E.ON’s
corporate governance policies. In this context, we thoroughly
discussed the efficiency of the Supervisory Board’s work, the
Act on the Appropriateness of Management Board Compensation
(“VorstAG”) passed by the German federal parliament
and its implementation at E.ON AG, the German Corporate
Governance Code (“the Code”) which was revised in several
places in June 2009 by the Government Commission, and
the efficiency of the Supervisory Board’s procedures. We also
dealt in detail with the Supervisory Board’s report to the
Annual Shareholders Meeting and the Corporate Governance
Report. In line with new legal requirements and the Code’s
recommendations, we discussed and passed resolutions on
adjustments to the deductible of the D&O insurance of the
Board of Management and Supervisory Board as well as on
changes to the policies and procedures of the Supervisory
Board and its Executive Committee. We also assured ourselves
that in the 2009 financial year E.ON AG complied with the
corporate governance principles contained in the Declaration
of Compliance it had issued on December 15, 2008. E.ON’s
Declaration of Compliance with the Code pursuant to Section
161 of the German Stock Corporation Act is published as part
of the Corporate Governance Declaration on page 144 of this
report and on the Internet at www.eon.com.
Committee Meetings
The Supervisory Board’s Executive Committee met five times.
In particular, it prepared the meetings of the E.ON AG Supervisory
Board. Among other things, the Executive Committee
recommended the appointment of Dr. Teyssen to succeed
Dr. Bernotat as Chairman of the Board of Management beginning
in May 2010. It also prepared in detail the Supervisory
Board’s discussion of VorstAG.
The Finance and Investment Committee held six meetings to
discuss reports from the Board of Management. These comprehensive
reports and the committee’s thorough discussions
focused on the asset-swap agreement with Gazprom under
which E.ON acquired a stake in Yuzhno-Russkoye gas field in
Russia, the sale of Thüga AG, and the sale of about 5,000 MW
of generating capacity in Germany and the ultrahigh-voltage
transmission system. The authorization of the Board of
Management to increase financing and the medium-term plan
for 2010–12 were also discussed. At its meetings, the committee
also prepared Supervisory Board resolutions on transactions
requiring the Supervisory Board’s approval and/or
made such resolutions itself in accordance with the Supervisory
Board’s policies and procedures.
At its five meetings, the Audit and Risk Committee devoted
particular attention to the Financial Statements of E.ON AG
and the Consolidated Financial Statements and Interim
Reports prepared in accordance with International Financial
Reporting Standards (“IFRS”) as well as issues relating to
accounting, the risk management system, E.ON’s risk situation,
and its dealings with its independent auditors. The committee
also thoroughly discussed E.ON’s financial situation, the
report from the risk committee, the status of E.ON’s commodity
risk positions for 2009–11, currency management, the
requirements of the German Accounting Law Modernization
Act (“BilMoG”), the auditing and consulting services performed
by the independent auditors, E.ON’s insurance strategy,
internal audit, the compliance report and E.ON’s compliance
system, and other issues related to auditing. The Board of
Management reported on ongoing proceedings and on legal
and regulatory risks for E.ON AG’s business. Key topics of discussion
relating to the financial statements were the application
of IFRS in Eastern Europe, asset management, the testing of
the internal control system, and the risk control system.
The Finance and Investment Committee and the Audit and
Risk Committee also held one joint meeting at which they
discussed the results of a special investigation of the financial
crisis conducted by PricewaterhouseCoopers Aktiengesellschaft.
The Nomination Committee held one meeting at which it
thoroughly discussed and prepared the decision regarding
the candidate proposed to the Annual Shareholders Meeting
as shareholder representative on the Supervisory Board.

Examination and Approval of the Financial Statements
of E.ON AG, Approval of the Consolidated
Financial Statements, Proposal for Appropriating
Income Available for Distribution
PricewaterhouseCoopers Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft,
Düsseldorf, the independent auditors
chosen by the Annual Shareholders Meeting and appointed
by the Supervisory Board, audited and submitted an unqualified
opinion on the Financial Statements of E.ON AG and
the Combined Group Management Report for the year ended
December 31, 2009. The same applies to the Consolidated
Financial Statements prepared in accordance with IFRS. The
Consolidated Financial Statements prepared in accordance
with IFRS exempt E.ON AG from the requirement to publish
Consolidated Financial Statements in accordance with the
German Commercial Code. Furthermore, the auditors examined
E.ON AG’s risk detection system. This examination revealed
that the system is fulfilling its tasks. After being subject to a
preliminary review by the Audit and Risk Committee, the Financial
Statements, the Combined Group Management Report
and the Independent Auditor’s Report were given to all the
members of the Supervisory Board. The Audit and Risk Committee
and the Supervisory Board, at its meeting to approve
the Financial Statements, also reviewed these documents in
detail, with the independent auditors present on both occasions.
At our meeting on March 9, 2010, we examined—with knowledge
of, and reference to, the Independent Auditor’s Report
and the results of the preliminary review by the Audit and
Risk Committee—the Financial Statements of E.ON AG, the
Consolidated Financial Statements, the Combined Group
Management Report, and the Board of Management’s proposal
regarding the appropriation of net income available for distribution.
We found no reasons for objections regarding these
documents. We approved the Independent Auditor’s Report.
We approved the Financial Statements of E.ON AG prepared
by the Board of Management and the Consolidated Financial
Statements. The Financial Statements are thus adopted. We
agree with the Combined Group Management Report and, in
particular, with its statements concerning E.ON’s future
development.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
We examined the Board of Management’s proposal for appropriating
income available for distribution, which includes a
cash dividend of €1.50 per ordinary share, also taking into consideration
the Company’s liquidity and its finance and investment
plans. The proposal is in the Company’s interest with due
consideration for the shareholders’ interests. We therefore
agree with the proposal for appropriating income available
for distribution.
Personnel Changes on the Supervisory Board
Effective May 31, 2009, Bård Mikkelsen ended his service on the
Supervisory Board. E.ON benefited from his wise counsel and
business acumen. We would like to take this opportunity to
again thank him for his dedicated service. At the E.ON AG
Annual Shareholders Meeting on May 6, 2009, Jens P. Heyerdahl
was elected as a member of the Supervisory Board effective
June 1, 2009, to serve the remainder of the departing member’s
term.
Personnel Changes on the Board of Management
At the Supervisory Board meeting on May 5, 2009, prior to
the Annual Shareholders Meeting, Dr. Wulf H. Bernotat
announced that he did not seek to have his contract renewed
again. In advance, we would like to take this opportunity to
thank Dr. Bernotat for his outstanding service to the E.ON
Group. He played a decisive role in leading E.ON’s transformation
into a focused energy company and dedicated himself
fully to E.ON’s successful strategic development and internationalization.
At our meeting on August 10, 2009, we appointed
Dr. Johannes Teyssen to succeed Dr. Bernotat as Chairman of
the Board of Management effective May 1, 2010.
The Supervisory Board wishes to thank the Board of Management,
the Works Councils, and all the employees of the E.ON
Group for their dedication and hard work.
Düsseldorf, March 9, 2010
The Supervisory Board
Ulrich Hartmann
Chairman
159

160
Supervisory Board (and Information on Other Directorships Held by Supervisory Board Members)
Honorary Chairman
Prof. Dr. Günter Vogelsang
Düsseldorf
Supervisory Board
Ulrich Hartmann
Chairman of the Supervisory Board,
E.ON AG
• Deutsche Lufthansa AG
• Münchener Rückversicherungs-
Gesellschaft AG (until April 22, 2009)
• Henkel AG & Co. KGaA
(Shareholders’ Committee)
Hubertus Schmoldt
Deputy Chairman of the Supervisory
Board, E.ON AG
• Bayer AG
• Deutsche BP AG
• DOW Olefinverbund GmbH
• RAG Aktiengesellschaft
Werner Bartoschek
Chairman of the Group Works Council,
E.ON Ruhrgas AG
• E.ON Ruhrgas AG
Sven Bergelin
Director of the National Energy
Industry Group, Unified Service
Sector Union, ver.di
• E.ON Avacon AG
• E.ON Energie AG
• E.ON Kernkraft GmbH
Gabriele Gratz
Chairwoman of the European Works
Council, E.ON AG
• E.ON Ruhrgas AG
Jens P. Heyerdahl d.y.
(since June 1, 2009)
Industrialist/Owner
• Berner Gruppen AS
• Hamang Papirfabrik AS
Wolf-Rüdiger Hinrichsen
Chairman of the Works Council,
E.ON AG
Ulrich Hocker
General Manager, German Investor
Protection Association
• Arcandor AG
(until September 30, 2009)
• Deutsche Telekom AG
• Feri Finance AG
• ThyssenKrupp Stainless AG
(until September 30, 2009)
• Gartmore SICAV
• Phoenix Mecano AG
(Chairman of the Board of Directors)
Prof. Dr. Ulrich Lehner
Member of the Shareholders’
Committee, Henkel AG & Co. KGaA
• Deutsche Telekom AG (Chairman)
• Henkel Management AG
• HSBC Trinkaus & Burkhardt AG
• Porsche Automobil Holding SE
• Dr. Ing. h.c. F. Porsche AG
• ThyssenKrupp AG
• Dr. Oetker KG (Advisory Board)
• Henkel AG & Co. KGaA
(Shareholders’ Committee)
• Novartis AG (Administrative Council)
Bård Mikkelsen
(until May 31, 2009)
President and Chief Executive Officer,
Statkraft AS
• Bonheur ASA
(Shareholders’ Committee)
• Ganger Rolf ASA
(Shareholders’ Committee)
• Store Norske Spitsbergen
Kulkompani AS (Chairman)
• CERMAQ ASA (Chairman)
Erhard Ott
Member of the National Executive Board
and Director of the Federal Utilities,
Waste Management, and Transportation
Division; Unified Service Sector Union,
ver.di
• E.ON Energie AG
• Bremer Lagerhaus-Gesellschaft AG
Hans Prüfer
Chairman of the Group Works Council,
E.ON AG
Klaus Dieter Raschke
Chairman of the Combined Works
Council, E.ON Energie AG
• E.ON Energie AG
• E.ON Kernkraft GmbH
Dr. Walter Reitler
Senior Vice President of HSE
and Corporate Responsibility,
E.ON Energie AG
• E.ON Energie AG
Information as of December 31, 2009, or as of the date on which membership in the E.ON Supervisory Board ended.
• Directorships/supervisory board memberships within the meaning of Section 100, Paragraph 2 of the German Stock Corporation Act.
• Directorships/memberships in comparable domestic and foreign supervisory bodies of commercial enterprises.

Dr. Henning Schulte-Noelle
Chairman of the Supervisory Board,
Allianz SE
• Allianz SE (Chairman)
• ThyssenKrupp AG
Dr. Karen de Segundo
Attorney
• British America Tobacco plc
• Ensus Ltd.
• Koninklijke Ahold N.V.
• Lonmin plc
• Pöyry Oyj
Dr. Theo Siegert
Managing Partner,
de Haen-Carstanjen & Söhne
• Deutsche Bank AG
• ERGO AG
• Henkel AG & Co. KGaA
• Merck KGaA
• DKSH Holding Ltd.
• E. Merck OHG
Prof. Dr. Wilhelm Simson
Chairman of the Supervisory Board,
Merck KGaA (until June 30, 2009)
• Frankfurter Allgemeine
Zeitung GmbH
• Hochtief AG
• Merck KGaA (Chairman)
(until June 30, 2009)
• E. Merck OHG
• Freudenberg & Co. KG
• Jungbunzlauer Holding AG
(Administrative Board)
Dr. Georg Freiherr von Waldenfels
Attorney
• Georgsmarienhütte Holding GmbH
• Rothenbaum Sport GmbH (Chairman)
Werner Wenning
Chairman of the Board of Management,
Bayer AG
• Bayer Schering Pharma AG
(Chairman) (until August 26, 2009)
• Deutsche Bank AG
• HDI V.a.G.
• Talanx AG
• Henkel AG & Co. KGaA
(Shareholders’ Committee)
Hans Wollitzer
Chairman of the Company Works
Council, E.ON Energie AG
• E.ON Energie AG
• E.ON Bayern AG
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Supervisory Board Committees
Mediation Committee
Ulrich Hartmann, Chairman
Hans Prüfer
Hubertus Schmoldt
Dr. Henning Schulte-Noelle
Executive Committee
Ulrich Hartmann, Chairman
Hans Prüfer
Hubertus Schmoldt
Dr. Henning Schulte-Noelle
Audit and Risk Committee
Dr. Theo Siegert, Chairman
Werner Bartoschek
Ulrich Hartmann
Klaus Dieter Raschke
Finance and Investment
Committee
Ulrich Hartmann, Chairman
Gabriele Gratz
Prof. Dr. Ulrich Lehner
Erhard Ott
Werner Wenning
Hans Wollitzer
Nomination Committee
Ulrich Hartmann, Chairman
Prof. Dr. Ulrich Lehner
Dr. Henning Schulte-Noelle
Information as of December 31, 2009, or as of the date on which membership in the E.ON Supervisory Board ended.
• Directorships/supervisory board memberships within the meaning of Section 100, Paragraph 2 of the German Stock Corporation Act.
• Directorships/memberships in comparable domestic and foreign supervisory bodies of commercial enterprises.
161

162
Disclosure of Takeover Barriers
Disclosures Pursuant to Section 289, Paragraph 4,
and Section 315, Paragraph 4, of the German
Commercial Code
(Part of the Combined Group Management Report)
Composition of Share Capital
The share capital totals €2,001,000,000.00 and consists of
2,001,000,000 registered shares without nominal value. Each
share of stock grants the same rights and one vote at a
Shareholders Meeting.
Restrictions on Voting Rights or the Transfer of
Shares
Shares acquired by an employee under the Company-sponsored
employee stock purchase program are subject to a blackout
period that begins the day ownership of such shares is transferred
to the employee and that ends on December 31 of the
next calendar year plus one. As a rule, an employee may not
sell such shares until the blackout period has expired.
Pursuant to Section 71b of the German Stock Corporation Act
(known by its German abbreviation, “AktG”), the Company’s
own shares give it no rights, including no voting rights.
Legal Provisions and Rules of the Company’s
Articles of Association regarding the Appointment
and Removal of Board of Management Members
and Amendments to the Articles of Association
Pursuant to the Company’s Articles of Association, the Board
of Management consists of at least two members. The
appointment of deputy Board of Management members is
permissible. The Supervisory Board decides on the number
of members as well as on their appointment and dismissal.
The Supervisory Board appoints members to the Board of
Management for a term not exceeding five years; a member
may be appointed for another term of office or a member’s
term of office may be extended for an additional term not
exceeding five years. If more than one person is appointed
as a member of the Board of Management, the Supervisory
Board may appoint one of the members as Chairperson of
the Board of Management. If a Board of Management member
is absent, in the event of an urgent matter, the court
makes the necessary appointment upon petition by a concerned
party. The Supervisory Board may revoke the appointment
of a member of the Board of Management and the
Chairperson of the Board of Management for serious cause
(for further details, see Sections 84 and 85 of the AktG and
Sections 31 and 33 of the German Codetermination Act).
Pursuant to Section 179 of the AktG, an amendment to the
Articles of Association requires a resolution of the Shareholders
Meeting. Resolutions of the Shareholders Meeting
require a simple majority and, in cases where a majority of
the share capital is required, a simple majority of the share
capital represented, unless the law or the Articles of Association
explicitly prescribe otherwise.
The Supervisory Board is authorized to decide by resolution
on amendments to the Articles of Association that affect
only their wording (Section 24 of the Articles of Association).
Furthermore, the Supervisory Board is authorized to revise
the wording of Section 3 of the Articles of Association after
complete or partial consummation of the increase of the
share capital in accordance with the respective utilization of
the authorized capital and—if the authorized capital has not
been utilized at all or not completely by April 27, 2010—after
the expiration of the authorization period. Furthermore,
the Supervisory Board is authorized to adapt the wording of
Section 3 of the Articles of Association according to the
utilization of the conditional capital.
Board of Management’s Power to Issue or Buy Back
Shares
Pursuant to a resolution of the Shareholders Meeting of
May 6, 2009, the Board of Management is authorized, until
November 5, 2010, to acquire own shares up to a total of
10 percent of the share capital. The shares acquired and other
own shares that are in possession of or to be attributed to
the Company pursuant to Sections 71a et seq. of the AktG
must altogether at no point account for more than 10 percent
of the Company’s share capital.
At the Board of Management’s discretion, the acquisition
may be conducted:
• through a stock exchange
• by means of a public offer directed at all shareholders
or a public solicitation to submit offers
• by means of a public offer or a public solicitation to
submit offers for the exchange of liquid shares that are
admitted to trading on an organized market for Company
shares
• by use of derivatives (put or call options or a combination
of both).
These authorizations may be utilized on one or several occasions,
in whole or in partial amounts, in pursuit of one or
more objectives by the Company and also by affiliated companies
or by third parties for the Company’s account or its
affiliates’ account.

With regard to treasury shares that will be or have been
acquired based on the above-mentioned authorization and/or
prior authorizations by the Shareholders Meeting, the Board
of Management is authorized, subject to the Supervisory
Board’s consent and excluding shareholder subscription rights,
to use these shares—in addition to a disposal through a
stock exchange or an offer granting a subscription right to
all shareholders—as follows:
• to be sold and transferred against cash consideration
• to be sold and transferred against contribution in kind
• to be used in order to satisfy the rights of creditors of
bonds with conversion or option rights or, respectively,
conversion obligations issued by the Company or its
Group companies
• to be offered for purchase and transferred to individuals
who are employed by the Company or one of its affiliates.
These authorizations may be utilized on one or several occasions,
in whole or in partial amounts, separately or collectively
by the Company and also by Group companies or by third
parties for the Company’s account or its affiliates’ account.
In addition, the Board of Management is authorized to cancel
treasury shares, without such cancellation or its implementation
requiring an additional resolution by the Shareholders
Meeting.
In each case, the Board of Management will inform the Shareholders
Meeting about the reasons for and the purpose of
the acquisition of treasury shares, the number of treasury
shares acquired, the amount of the registered share capital
attributable to them, the portion of the registered share
capital represented by them, and their equivalent value.
Pursuant to Section 3, Paragraph 2 of the Articles of Association
(a resolution of the Shareholders Meeting of April 27, 2005),
the Board of Management is authorized, subject to the
Supervisory Board’s consent, to increase the Company’s share
capital until April 27, 2010, by up to €540,000,000 by issuing
new registered shares with no-par value against contribution
in cash and/or in kind once or several times (Authorized Capital
pursuant to Sections 202 et seq. of the AktG). The Board
of Management is authorized, subject to the Supervisory
Board’s consent, to decide whether to exclude shareholder
subscription rights.
Pursuant to Section 3, Paragraph 5 of the Articles of Association,
the Board of Management is authorized, subject to
the Supervisory Board’s consent, to increase the Company’s
share capital from April 28, 2010, until May 5, 2014, by up to
€460,000,000 by issuing new registered shares with no-par
value against contribution in cash and/or in kind once or
several times (Authorized Capital pursuant to Sections 202
et seq. of the AktG).
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
The Board of Management is furthermore authorized, subject
to the Supervisory Board’s consent, to exclude shareholders’
subscription right in the case of an issue of shares against
cash contributions in an amount of up to 10 percent of the Company’s
share capital. This exclusion may be applied, inter alia,
to shares issued under utilization of the Authorized Capital
resolution of the Shareholders Meeting of April 27, 2005. The
Board of Management is authorized, subject to the Supervisory
Board’s consent, to exclude the shareholders’ subscription
right in the case of an issue of shares against contributions
in kind, but only to such an extent that the aggregate
amount of the shares issued under this authorization (Section
3, Paragraph 5 of the Articles of Association) and under
the Authorized Capital resolution of the Shareholders Meeting
of April 27, 2005, against contribution in kind with an
exclusion of the shareholders’ subscription right does not
exceed 20 percent of the Company’s share capital. In addition,
the total amount of shares issued against contributions in
cash or in kind with an exclusion of the subscription right
may no exceed 20 percent of the Company’s share capital.
Finally, the Shareholders Meeting of May 6, 2009, gave the
Board of Management two authorizations to issue bonds
with conversion or option rights and with conversion obligations,
profit participation rights, or participating bonds
(or a combination or these instruments). Under these authorizations,
the Board of Management may, with the Supervisory
Board’s consent, issue, once or several times, until May 5,
2014, registered option bonds, convertible bonds, profit participation
rights, or participating bonds (or a combination of
these instruments) with a total face value of up to €5 billion
and grant option rights to the holders of option bonds and/or
conversion rights to the holders of convertible bonds for
registered Company shares with a proportionate amount of
the Company’s share capital totaling up to €175,000,000 pursuant
to the details of the terms and conditions of the
option and/or conversion bonds. This ensures that the total
face value of up to €5 billion could only be utilized once
through the utilization of both authorizations. In line with
the two authorizations, the Company’s share capital is conditionally
increased by up to €175,000,000 and again by up to
€175,000,000 pursuant to Section 3, Paragraphs 3 and 4, of the
Articles of Association. Here, too, the Board of Management is
authorized, subject to the Super visory Board’s consent, to
fully exclude the shareholders’ subscription right on bonds
(with option or conversion rights or conversion obligation)
issued against contributions in cash.
163

164 Internal Control System for the Accounting Process
Significant Agreements to which the Company Is a
Party that Take Effect on a Change of Control of the
Company following a Takeover Bid
The ministerial approval of the German Federal Minister of
Economics and Technology dated July 5/September 18, 2002,
on the proposed mergers of E.ON/Gelsenberg and E.ON/
Bergemann contains the following condition: at the direction
of the Federal Ministry of Economics and Technology, E.ON
must sell to a third party all shares in Ruhrgas AG held by E.ON
or its affiliated companies if another company acquires a
voting-rights or share-capital majority in E.ON and the acquirer
gives reasonable cause for concern that the Federal Republic
of Germany’s energy policy interests will be negatively affected.
The acquirer of Ruhrgas shares requires the prior approval of
the Federal Ministry of Economics and Technology; such prior
approval may be denied only if the acquirer gives reasonable
cause for concern that the Federal Republic of Germany’s
energy policy interests will be negatively affected. This obligation
is valid for a period of ten years after the mergers’ consummation.
Debt issued since 2007 contains change-of-control clauses that
give the creditor the right of cancellation. This applies, inter
alia, to bonds issued by E.ON International Finance B.V. and
guaranteed by E.ON AG, promissory notes issued by E.ON AG,
and other instruments such as credit contracts. Granting
change-of-control rights to creditors is considered good corporate
governance and has become standard market practice.
Further information about financial liabilities is contained
in the section of the Combined Group Management Report
entitled “Financial Condition” and in Note 26 to the Consolidated
Financial Statements.
Settlement Agreements between the Company and
Board of Management Members in the Case of a
Change-of-Control Event
In the event of a premature loss of a Board of Management
position due to a change-of-control event, the service agreements
of Board of Management members entitle them to
severance and settlement payments (see the detailed presentation
in the Compensation Report).
Disclosures Pursuant to Section 289, Paragraph 5,
of the German Commercial Code on the Internal
Control System for the Accounting Process
(Part of the Combined Group Management Report)
General Principles
We apply Section 315a (1) of the German Commercial Code
and prepare our Consolidated Financial Statements in accordance
with International Financial Reporting Standards
(“IFRS”) and the interpretations of the International Financial
Reporting Interpretations Committee that were adopted
by the European Commission for use in the EU as of the end
of the fiscal year and whose application was mandatory as
of the balance-sheet date (see Note 1 to the Consolidated
Financial Statements). Our market units are our IFRS reportable
segments.
We prepare the E.ON AG Financial Statements in accordance
with the German Commercial Code and the German Stock
Corporation Act.
We prepare a Combined Group Management Report which
applies to both the E.ON Group and E.ON AG.
Accounting Process
The Consolidated Financial Statements are prepared in a
multi-step process using the same SAP software throughout
the E.ON Group. The financial statements of our market
units (prepared by the respective market unit lead company
and approved by its independent auditor) are combined at
E.ON AG in the Consolidated Financial Statements. E.ON AG
is responsible for maintaining and providing support for
the consolidation software, for the E.ON-wide standard chart
of accounts, and for implementing central consolidation
measures. At several E.ON entities, shared service centers conduct
some processes (like human resources management)
that have an indirect impact on the accounting process.
All companies included in the Consolidated Financial Statements
must comply with our uniform Accounting and
Reporting Guidelines for the Annual Consolidated Financial
Statements and the Interim Consolidated Financial Statements.
These guidelines include a description of all general
E.ON Group consolidation processes as well as the applicable
IFRS accounting and valuation principles. They also explain
accounting principles (such as those for provisions for nuclear
waste management and the treatment of regulatory obligations)
typical in the E.ON Group. In addition, all such companies
must meet the deadlines of our balance-sheet closing calendar.
In conjunction with the closing process, additional qualitative
and quantitative information is compiled. Furthermore, dedicated
quality-control processes are in place for all relevant
departments to discuss and ensure the completeness of
relevant information on a regular basis.

E.ON AG’s Financial Statements are also prepared by using
SAP software. The accounting and preparation processes are
divided into discrete functional steps. Automated or manual
controls are integrated into each process. Defined procedures
ensure that all transactions and the preparation of E.ON AG’s
Financial Statements are recorded, processed, assigned on
an accrual basis, and documented in a complete, timely, accurate
manner. Relevant data from E.ON AG’s Financial Statements
are, if necessary, adjusted to conform with IFRS and
then transferred to the consolidation software system using
SAP-supported transfer technology.
The following explanations about our Internal Control System
and our general IT controls apply to the Consolidated
Financial Statements and E.ON AG’s Financial Statements.
Internal Control and Risk Management System
Internal controls are an integral part of our accounting processes.
Guidelines, called Internal_Controls@E.ON, define
uniform financial-reporting documentation requirements and
procedures for the entire E.ON Group. The guidelines include
a definition of their scope, documentation and evaluation
standards, a Catalog of Management Controls, a Generic Risk
Catalog, a description of the test activities of our Internal
Audit division, and a description of the final Sign-Off process.
We believe that compliance with these rules provides sufficient
certainty to prevent error or fraud from resulting in
material misrepresentations in the Consolidated Financial
Statements, the Combined Group Management Report, and
the Interim Reports.
COSO Model
Our internal control system is based on the globally recognized
COSO model (COSO: The Committee of Sponsoring
Organizations of the Treadway Commission). The Generic Risk
Catalog (which encompasses company- and industry-specific
aspects) defines possible risks for accounting (financial
reporting) in the functional areas of our operating entities
and thus serves as check list and provides guidance for the
documentation process.
The Catalog of Management Controls is a key component of
a functioning internal control system. It encompasses overarching
controls to address risks in a range of issue areas and
processes, such as financial reporting, corporate responsibility,
fraud, the communications process, planning and budgeting,
investment controlling and internal audit.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Central Documentation System
The E.ON companies to which the internal control system
applies use a central documentation system to document key
controls. The system defines the scope, detailed documentation
requirements, requirements for the assessment process
and the final evaluation performed by the Sign-Off process.
Scope
Each year, we conduct a multi-stage process using qualitative
criteria and quantitative materiality metrics to define which
E.ON companies must document and evaluate their financialdisclosure
processes and controls. Selection is based on predefined
line items in the balance sheets, income statements
and/or notes of each company’s prior-year financial statements.
Assessment
After companies have documented their processes and controls,
they conduct an annual assessment of the design and
the operational effectiveness of the processes as well as the
controls embedded in these processes.
Tests Performed by Internal Audit
The management of E.ON companies relies on the assessment
performed by their staff and on testing of the internal control
system performed by Internal Audit. These tests are a key
part of the process. Using a risk-oriented testing plan, Internal
Audit tests the E.ON Group’s internal control system and
identifies potential deficiencies (issues). On the basis of its
own evaluation and the results of tests performed by Internal
Audit, an E.ON company’s management carries out the final
signing-off.
Following the preliminary evaluation of the processes and
controls performed by an E.ON company’s own staff and by
Internal Audit, the market units carry out a second evaluation
process to ensure quality before a final report is made to
E.ON AG. This second evaluation is conducted by a committee
of market unit staff or by the market unit management itself.
Sign-Off Process
The final step of the internal evaluation process is the submission
of a formal written declaration confirming the system’s
effectiveness. The declaration process is conducted at all levels
of the Group (beginning at the business-unit level) before it
is conducted by the market units and, finally, by E.ON AG. It is
therefore a formal mechanism that encompasses all levels
of the E.ON Group’s hierarchy. The Chairman of the E.ON AG
Board of Management and the Chief Financial Officer make
the final Sign-Off on the effectiveness of the internal control
system of E.ON AG’s financial reporting.
165

166 Explanatory Report of the Board of Management on the Disclosures pursuant
to Section 175, Paragraph 2 of the German Stock Corporation Act
Internal Audit regularly informs the E.ON AG Supervisory
Board’s Audit and Risk Committee about the internal control
system for financial reporting and any significant issues areas
it identifies in the E.ON Group’s underlying control processes.
General IT Controls
The effectiveness of the automated controls in the standard
accounting software systems and in key additional applications
depends to a considerable degree on the proper functioning
of IT systems. Consequently, IT controls are embedded in our
documentation system. These controls primarily involve
ensuring the proper functioning of access-control mechanisms
of systems and applications, of daily IT operations (such as
emergency intervention), and of the program change process.
In addition, support for the central consolidation system is
conducted at E.ON AG in Düsseldorf. Furthermore, an E.ON
company called E.ON IS provides comprehensive IT services
for the majority of our market and business units.
Explanatory Report of the Board of Management on
the Disclosures Pursuant to Section 289, Paragraph
4, and Section 315, Paragraph 4, as well as Section
289, Paragraph 5, of the German Commercial Code
The Board of Management has read and discussed the disclosures
pursuant to Section 289, Paragraph 4 and Section 315,
Paragraph 4 of the German Commercial Code contained in
the Combined Group Management Report for the year ended
December 31, 2009, and issues the following declaration
regarding these disclosures:
The disclosures pursuant to Section 289, Paragraph 4 and
Section 315, Paragraph 4 of the German Commercial Code
contained in the Company’s Combined Group Management
Report are correct and conform with the Board of Management’s
knowledge. The Board of Management therefore confines
itself to the following statements:
Beyond the disclosures contained in the Combined Group
Management Report (and legal restrictions such as the exclusion
of voting rights pursuant to Section 136 of the German
Stock Corporation Act), the Board of Management is not
aware of any restrictions regarding voting rights or the transfer
of shares. The Company is not aware of shareholdings
in the Company’s share capital exceeding ten out of one hundred
voting rights, so that information on such shareholdings
is not necessary. There is no need to describe shares with
special control rights (since no such shares have been issued)
or special restrictions on the control rights of employees
shareholdings (since employees who hold shares in the Company’s
share capital exercise their control rights directly, just
like other shareholders).
To the extent that the Company has agreed to settlement payments
for Board of Management members in the case of a
change of control, the purpose of such agreements is to preserve
the independence of Board of Management members.
The Board of Management also read and discussed the disclosures
in the Combined Group Management Report pursuant
to Section 289, Paragraph 5, of the German Commercial Code.
The disclosures contained in the Combined Group Management
Report on the key features of our internal control and
risk management system for accounting processes are complete
and comprehensive.
Internal controls are an integral part of our accounting processes.
Guidelines define uniform financial-reporting documentation
requirements and procedures for the entire E.ON
Group. We believe that compliance with these rules provides
sufficient certainty to prevent error or fraud from resulting
in material misrepresentations in the Consolidated Financial
Statements, the Combined Group Management Report, and
the Interim Reports.
Düsseldorf, February 2010
E.ON AG
Board of Management
Dr. Bernotat Dr. Teyssen
Dänzer-Vanotti Feldmann Dr. Schenck

Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Board of Management (and Information on Other Directorships Held by Board of Management Members)
Dr. Wulf H. Bernotat
Born 1948 in Göttingen,
Member of the Board of Management
since 2003
Group Executive Human Resources,
Investor Relations, Group Audit,
Corporate Communications, Economic
and Public Affairs
Chairman and Chief Executive Officer
Düsseldorf
• E.ON Energie AG 1 (Chairman)
• E.ON Ruhrgas AG 1 (Chairman)
• Allianz SE
• Bertelsmann AG
• Metro AG
• E.ON Nordic AB² (Chairman)
• E.ON Sverige AB 2 (Chairman)
• E.ON US Investments Corp.²
(Chairman)
Dr. Johannes Teyssen
Born 1959 in Hildesheim,
Member of the Board of Management
since 2004
Corporate Planning & Controlling,
Group Procurement, PerformtoWin,
Upstream/Generation, Trading & Portfolio
Optimization, Marketing & Sales,
Regulation and Infrastructure Management
Vice Chairman
Düsseldorf
• E.ON Energie AG 1
• E.ON Energy Trading SE 1 (Chairman)
• E.ON Ruhrgas AG 1
• Deutsche Bank AG
• Salzgitter AG
• E.ON Italia S.p.A.²
• E.ON Nordic AB²
• E.ON Sverige AB²
Christoph Dänzer-Vanotti
Born 1955 in Freiburg,
Member of the Board of Management
since 2006
Group Human Resources, Corporate
Sustainability, Real Estate/Mining,
Corporate Incident & Crisis Management,
Facility Management
Düsseldorf
• E.ON Energie AG 1
• E.ON Energy Trading SE 1
(since May 12, 2009)
• Deutsche Bahn AG
(since February 1, 2009)
• E.ON Nordic AB²
• E.ON Sverige AB 2
Lutz Feldmann
Born 1957 in Bonn,
Member of the Board of Management
since 2006
Mergers & Acquisitions, Legal Affairs,
Corporate Development, New Markets
Düsseldorf
• E.ON Iberia Energía SL 2
• E.ON Italia S.p.A.²
• OAO OGK-4²
(Chairman until June 17, 2009)
• Thyssen‘sche Handelsgesellschaft
mbH² (since December 1, 2009)
Dr. Marcus Schenck
Born 1965 in Memmingen,
Member of the Board of Management
since 2006
Finance, Accounting, Tax, IT
Düsseldorf
• E.ON Energy Trading SE 1
• E.ON Ruhrgas AG 1
• E.ON IS GmbH 1 (Chairman)
• Commerzbank AG
• HSBC Trinkaus & Burkhardt AG
(Member of the Administrative Board)
Information as of December 31, 2009, or as of the date on which membership in the E.ON Board of Management ended.
• Directorships/supervisory board memberships within the meaning of Section 100, Paragraph 2, of the German Stock Corporation Act.
• Directorships/memberships in comparable domestic and foreign supervisory bodies of commercial enterprises.
1 Exempted E.ON Group directorship.
2 Other E.ON Group directorship.
167

168
Tables and Explanations
Summary of Financial Highlights 1
€ in millions 2005 2006 2007 2008 2009
Sales and earnings
Sales 51,616 64,091 68,731 86,753 81,817
Adjusted EBITDA 10,194 11,724 12,450 13,385 13,526
Adjusted EBIT 7,293 8,356 9,208 9,878 9,646
Net income 7,407 6,082 7,724 1,621 8,645
Net income attributable to shareholders of E.ON AG – 5,586 7,204 1,283 8,396
Value measures
ROCE (%) 12.2 13.8 14.5 12.9 11.7
Pretax cost of capital (%) 9.0 9.0 9.1 9.1 9.1
Value added 1,920 2,916 3,417 2,902 2,144
Asset structure
Non-current assets 93,914 96,488 105,804 108,717 113,068
Current assets 32,648 31,087 31,490 48,107 39,568
Total assets 126,562 127,575 137,294 156,824 152,636
Capital structure
Equity 44,484 51,245 55,130 38,444 43,955
Capital stock 1,799 1,799 1,734 2,001 2,001
Minority interests 4,734 2,533 5,756 3,960 3,607
Non-current liabilities 52,251 46,947 52,402 66,425 70,828
Provisions 27,402 22,100 20,963 22,757 21,692
Financial liabilities 10,555 10,029 15,915 25,036 30,657
liabilities and other 14,294 14,818 15,524 18,632 18,479
Current liabilities 25,093 29,383 29,762 51,955 37,853
Provisions 6,460 3,994 3,992 4,260 4,715
Financial liabilities 3,807 3,443 5,549 16,022 7,120
Other liabilities and other 14,826 21,946 20,221 31,673 26,018
Total equity and liabilities 126,562 127,575 137,294 156,824 152,636
Cash flow and investments
Cash provided by operating activities of continuing operations 6,544 7,161 8,726 6,738 9,054
Cash-effective investments 3,941 5,037 11,306 18,406 9,200
Financial ratios
Equity ratio 2 (%) 35 40 40 25 29
Non-current assets as a percentage of property, plant, and equipment 108 102 102 96 102
Economic net debt (at year-end) – -18,180 -23,432 -44,946 -44,665
Debt factor 3 – 1.6 1.9 3.4 3.3
Cash provided by operating activities of continuing operations
as a percentage of sales 12.7 11.2 12.7 7.8 11.1
Stock 4
Earnings per share attributable to shareholders of E.ON AG (€) 3.75 2.82 3.69 0.69 4.41
Equity 5 per share (€) 22.50 24.62 26.06 18.11 21.21
Twelve-month high (€) 29.64 34.80 48.69 50.93 30.47
Twelve-month low (€) 21.50 27.37 32.02 23.50 18.19
Year-end closing price (€) 29.13 34.28 48.53 28.44 29.23
Dividend per share (€) 0.92 1.12 1.37 1.50 1.50
Dividend payout 4,614 6 2,210 2,560 2,857 2,858
Market capitalization 7 (€ in billions) 57.6 67.6 92.0 54.2 55.7
E.ON AG long-term ratings
Moody’s Aa3 Aa3 A2 A2 A2
Standard & Poor’s AA– AA– A A A
Employees
Employees at year-end 79,570 80,612 87,815 93,538 88,227
1 Adjusted for discontinued operations; 2005 figures calculated according to U.S. GAAP. 2 2005 figure excludes minority interests. 3 Ratio between economic net debt and
adjusted EBITDA. 4 All figures subsequent to, or adjusted for, the stock split. 5 Attributable to shareholders of E.ON AG. 6 Includes special dividend of €4.25 per share. 7 Based
on shares outstanding.

Glossary of Financial Terms
Actuarial gains and losses
The actuarial calculation of provisions for pensions is based
on projections of a number of variables, such as projected
future salaries and pensions. An actuarial gain or loss is
recorded when the actual numbers turn out to be different
from the projections.
Adjusted EBIT
Adjusted earnings before interest and taxes. Adjusted EBIT,
E.ON’s key earnings figure for purposes of internal management
control and as an indicator of our businesses’ long-term
earnings power, is derived from income/loss from continuing
operations before interest income and income taxes and is
adjusted to exclude certain extraordinary items, mainly other
income and expenses of a non-recurring or rare nature (see
Other non-operating earnings).
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation, and
amortization.
Adjusted net income
An earnings figure after interest income, income taxes, and
minority interests that has been adjusted to exclude certain
extraordinary effects. The adjustments include effects from
the marking to market of derivatives, book gains and book
losses on disposals, restructuring expenses, and other non-operating
income and expenses of a non-recurring or rare nature
(after taxes and minority interests). Adjusted net income also
excludes income/loss from discontinued operations, net.
ADR
Abbreviation for American depositary receipt. These are depositary
certificates issued by U.S. banks and traded on U.S. stock
exchanges in place of a foreign stock. ADRs make it easier for
foreign companies to gain access to U.S. investors.
Beta factor
Indicator of a stock’s relative risk. A beta coefficient of more
than one indicates that a stock has a higher risk than the
overall market; a beta coefficient of less than one indicates
that it has a lower risk.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Bond
Debt instrument that gives the holder the right to repayment
of the bond’s face value plus an interest payment. Bonds are
issued by public entities, credit institutions, and companies
and are sold through banks. They are a form of medium- and
long-term debt financing.
Capital employed
Represents the interest-bearing capital tied up in the E.ON
Group. It is equal to a segment’s operating assets less
the amount of non-interest-bearing available capital. Other
shareholdings are included at their acquisition cost, not
their fair value.
Capital stock
The aggregate face value of all shares of stock issued by a company;
entered as a liability in the company’s balance sheet.
Cash flow statement
Calculation and presentation of the cash a company has
generated or consumed during a reporting period as a result
of its operating, investing, and financing activities.
Cash provided by operating activities
Cash provided by, or used for, operating activities of continuing
operations.
Commercial paper (“CP”)
Unsecured, short-term debt instruments issued by commercial
firms and financial institutions. CPs are usually quoted on a
discounted basis, with repayment at par value.
Consolidation
Accounting approach in which a parent company and its
affiliates are presented as if they formed a single legal
entity. All intracompany income and expenses, intracompany
accounts payable and receivable, and other intracompany
transactions are offset against each other. Share investments
in affiliates are offset against their capital stock, as are all
intracompany credits and debts, since such rights and obligations
do not exist within a single legal entity. The adding
together and consolidation of the remaining items in the
annual financial statements yields the consolidated balance
sheets and the consolidated statements of income.
169

170 Glossary of Financial Terms
Contractual trust arrangement (“CTA”)
Model for financing pension obligations under which company
assets are converted to assets of a pension plan administered
by an independent trust that is legally separate from
the company.
Cost of capital
Weighted average of the costs of debt and equity financing
(weighted average cost of capital: “WACC”). The cost of equity
is the return expected by an investor in a given stock. The
cost of debt is based on the cost of corporate debt and bonds.
The interest on corporate debt is tax-deductible (referred to
as the tax shield on corporate debt).
Credit default swap (“CDS”)
A credit derivative used to hedge the default risk on loans,
bonds, and other debt instruments.
Debt factor
Ratio between economic net debt and adjusted EBITDA.
Serves as a metric for managing E.ON’s capital structure.
Debt issuance program
Contractual framework and standard documentation for the
issuance of bonds.
Discontinued operations
Businesses or parts of a business that are planned for
divestment or have already been divested. They are subject
to special disclosure rules.
Economic investments
Cash-effective capital investments plus debt acquired and
asset swaps.
Economic net debt
Key figure that supplements net financial position with
pension obligations and asset retirement obligations (less
prepayments to the Swedish nuclear fund).
Equity method
Method for valuing shareholdings in associated companies
whose assets and liabilities are not fully consolidated. The
proportional share of the company’s annual net income (or
loss) is reflected in the shareholding’s book value. This
change is usually shown in the owning company’s income
statement.
Fair value
The price at which assets, debts, and derivatives pass from
a willing seller to a willing buyer, each having access to all
the relevant facts and acting freely.
Financial derivative
Contractual agreement based on an underlying value (reference
interest rate, securities prices, commodity prices) and a
nominal amount (foreign currency amount, a certain number
of stock shares).
Goodwill
The value of a subsidiary as disclosed in the parent company’s
consolidated financial statements resulting from the consolidation
of capital (after the elimination of hidden reserves
and liabilities). It is calculated by offsetting the carrying amount
of the parent company’s investment in the subsidiary against
the parent company’s portion of the subsidiary’s equity.
Impairment test
Periodic comparison of an asset’s book value with its fair
value. A company must record an impairment charge if it
determines that an asset’s fair value has fallen below its
book value. Goodwill, for example, is tested for impairment
on at least an annual basis.
International Financial Reporting Standards (“IFRS”)
Under regulations passed by the European Parliament and
European Council, capital-market-oriented companies in the
EU must apply IFRS for fiscal years that begin on or after
January 1, 2005, and by January 1, 2007, at the latest.
Net financial position
Difference between a company’s total financial assets (cash
and securities) and total financial liabilities (debts to financial
institutions, third parties, and associated companies).
Option
The right, not the obligation, to buy or sell an underlying
asset (such as a security or currency) at a specific date at a
predetermined price from or to a counterparty or seller. Buy
options are referred to as calls, sell options as puts.

Other non-operating earnings
Income and expenses that are unusual or infrequent, such as
book gains or book losses from significant disposals as well
as restructuring expenses (see Adjusted EBIT).
Prepayments and accrued income
Line item used to account for aperiodic expenses and income.
Prepayments, which are recorded on the liability side of the
balance sheet, occur when payment is made before the balance-sheet
date, but the expense is after the balance-sheet
date. Accrued income, which is recorded on the liabilities
side of the balance sheet, occurs when payment is received
before the balance-sheet date, but the income is recorded
after the balance-sheet date.
Purchase price allocation
In a business combination accounted for as a purchase, the
values at which the acquired company’s assets and liabilities
are recorded in the acquiring company’s balance sheet.
Rating
Standardized performance categories for an issuer’s short-
and long-term debt instruments based on the probability
of interest payment and full repayment. Ratings provide
i nvestors and creditors with the transparency they need to
compare the risks of various financial investments.
Return on equity
The return earned on an equity investment (in this case,
E.ON stock), calculated after corporate taxes but before an
investor’s individual income taxes.
ROCE
Acronym for return on capital employed. A key indicator
for monitoring the performance of E.ON’s market units, ROCE
is the ratio between adjusted EBIT and capital employed.
Capital employed represents the interest-bearing capital tied
up in the E.ON Group.
Stock appreciation rights (“SAR”)
Virtual stock options in which compensation is in cash instead
of in stock. At E.ON, the exercise gain equals the difference
between the price of E.ON stock on the exercise date and at
the time the SAR were issued.
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
Stock split
A division of a company’s stock by a specified ratio. An individual
shareholder’s stake in the company remains unchanged
but is divided into a correspondingly larger number of shares.
The main purpose of a stock split is to reduce the price of
an individual share of stock in order to increase the stock’s
attractiveness to investors.
Syndicated line of credit
Credit facility extended by two or more banks that is good
for a stated period of time.
Tax shield
Deductions that reduce an enterprise’s tax burden. For
example, the interest on corporate debt is tax-deductible.
An enterprise takes this into consideration when choosing
between equity and debt financing (see Cost of capital).
Value added
Key measure of E.ON’s financial performance based on residual
wealth calculated by deducting the cost of capital (debt
and equity) from operating profit. It is equivalent to the
return spread (ROCE minus the cost of capital) multiplied by
capital employed, which represents the interest-bearing
capital tied up in the E.ON Group.
Value at risk (“VaR”)
Risk measure that indicates the potential loss that a portfolio
of investments will not exceed with a certain degree of
probability (for example, 99 percent) over a certain period of
time (for example, one day). Due to the correlation of individual
transactions, the risk faced by a portfolio is lower than
the sum of the risks of the individual investments it contains.
Working capital
The difference between a company’s current assets and
current liabilities.
171

172
Additional Information E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Germany
Production: Jung Produktion, Düsseldorf
Typesetting & Lithography: Addon Technical Solutions, Düsseldorf
Printing: Druckpartner, Essen
Photo Credits: Markus Altmann (cover page 1, cover page 4),
Ident-No. 103755
Cert no. IMO-COC-027827
T +49-211-4579-0
F +49-211-4579-501
info@eon.com
www.eon.com
Media Relations
T +49-211-4579-453
presse@eon.com
Investor Relations
T +49-211-4579-549
investorrelations@eon.com
Creditor Relations
T +49-211-4579-563
creditorrelations@eon.com
Only the German version of this Financial Report is legally binding.
This Financial Report was printed on paper produced from fiber that comes from a responsibly managed
forest certified by the Forest Stewardship Council.

Financial Calendar
May 6, 2010 2010 Annual Shareholders Meeting
May 7, 2010 Dividend Payout
May 11, 2010 Interim Report: January – March 2010
August 11, 2010 Interim Report: January – June 2010
November 10, 2010 Interim Report: January – September 2010
March 9, 2011 Release of 2010 Annual Report
May 5, 2011 2011 Annual Shareholders Meeting
May 6, 2011 Dividend Payout
May 11, 2011 Interim Report: January – March 2011
August 10, 2011 Interim Report: January – June 2011
November 9, 2011 Interim Report: January – September 2011