2011 Annual Report - OTCIQ.com

More documents

Recommendations

Info

26 Earnings Situation Gas Gas’s sales were up by 8 percent to around €23 billion (prior year: €21.3 billion). Sales € in millions 2011 2010 +/- % Upstream 1,517 1,391 +9 Midstream 21,177 20,001 +6 Transmission/Shareholdings 1,199 1,555 -23 Other/Consolidation -881 -1,599 – Gas 23,012 21,348 +8 The Upstream reporting unit’s sales were up by €126 million. Positive energy price developments, particularly for output from Yuzhno Russkoye gas field in Siberia, more than offset lower production at North Sea gas fields. The Midstream reporting unit grew sales by €1.2 billion. Lower sales volume was more than offset by higher sales prices. The commissioning of new storage capacity led to higher sales at the storage business. Lower transport revenues in the regulated business and lower sales of control and balancing energy resulted in a decrease in sales at Transmission/Shareholdings. Trading Trading recorded sales of about €70.5 billion in 2011. The increase relative to the prior year resulted mainly from an increase in trading activity in power and gas. On the gas side, optimization of long-term supply contracts and of E.ONowned gas-fired power plants led to a significant increase in sales, as did an adjustment of our hedging strategy. On the power side, sales rose in particular because of the marketing of additional output from E.ON-owned power plants and from an increase in trading activities to optimize the value of E.ON’s generation portfolio. The increase in sales is reflected almost identically in the increase in cost of materials, since optimization involves buying quantities and then reselling them. The Consolidated Statements of Income include Proprietary Trading’s sales net of the associated cost of materials. Sales € in millions 2011 2010 +/- % Proprietary Trading 111 -36 – Optimization 70,352 47,984 +47 Trading 70,463 47,948 +47 Germany Sales at the Germany regional unit increased by €0.8 billion. Sales € in millions 2011 2010 +/- % Distribution Networks 11,276 10,504 +7 Non-regulated/Other 25,968 25,899 – Germany 37,244 36,403 +2 The increase is entirely attributable to the Distribution Networks reporting unit, mainly because it recorded significantly higher sales in conjunction with Germany’s Renewable Energy Law. A regulation-driven decline in network charges was the main negative factor. Sales at the Non-regulated/Other reporting unit were on par with the prior-year figure. Other EU Countries Other EU Countries grew sales by €378 million. Sales € in millions 2011 2010 +/- % UK 8,554 8,732 -2 (£ in millions) (7,422) (7,579) (-2) Sweden 2,922 3,235 -10 (SEK in millions) (26,381) (30,858) (-14) Czechia 2,765 2,338 +18 (CZK in millions) (67,991) (59,114) (+15) Hungary 1,948 2,032 -4 (HUF in millions) (544,196) (559,800) (-3) Remaining regional units 6,843 6,317 +8 Other EU Countries 23,032 22,654 +2
Sales at the UK regional unit declined by €178 million. The decline in sales resulting from the disposal of the regulated business (Central Networks) was partially offset by higher sales in the retail business. The Sweden regional unit’s sales decreased by €313 million, despite positive currency-translation effects of €155 million. The decline was mainly due to lower retail sales which reflect a decline in spot prices from the high level seen in the first half of 2010. Sales in Czechia rose by €427 million, primarily because of higher compensation payments for the preferential dispatch of renewable-source electricity in the distribution network. Sales at the Hungary regional unit were slightly below the prior-year level because of lower sales in the regulated business and lower sales prices. Sales at the remaining reporting units rose by €526 million, in particular because of positive margin and price effects in France, the Netherlands, Spain, and Romania. The acquisition of new customers in the Netherlands was another positive factor. Sales in Italy declined on lower sales volume. Russia An increase in generating capacity along with higher power prices enabled Russia to grow its sales by 29 percent, from €1,252 million in 2010 to €1,615 million in 2011. In local currency, sales were up by 31 percent, from RUB 50,344 million to RUB 66,039 million. Other Significant Line Items from the Consolidated Statements of Income Own work capitalized of €519 million was 12 percent below the prior-year level (€588 million) and consisted chiefly of engineering services performed in our network business in conjunction with new-build projects. CEO Letter E.ON Stock Combined Group Management Report Consolidated Financial Statements Corporate Governance Report Supervisory Board and Board of Management Tables and Explanations Other operating income declined by 14 percent to €13,785 million (prior year: €15,961 million). Higher income from exchangerate differences of €6,027 million (€5,177 million) was more than offset by significantly lower income from derivative financial instruments of €4,559 million (€6,046 million). In derivative financial instruments, there were significant effects from commodity derivatives in 2011. These principally affected our positions in natural gas, oil, and emission allowances. Gains on the disposal of securities, fixed assets, and shareholdings amounted to €1,548 million (€3,478 million). In 2011, these gains are primarily attributable to the sale of additional Gazprom stock and our U.K. power distribution network. In the prior year, they were attributable to the disposal of power capacity and our ultrahigh-voltage transmission system (transpower) in line with our commitment to the European Commission and to the sale of Gazprom stock. Miscellaneous other operating income consisted primarily of reductions to valuation allowances and provisions as well as compensation payments received for damages. Costs of materials rose by €24,252 million to €97,827 million (€73,575 million), primarily due to an increase in trading volume compared with the prior year, higher costs stemming from the amendment of Germany’s Nuclear Energy Act which calls for the early, unplanned shutdown of nuclear power plants (“NPPs”) in Germany (around €1.5 billion), and higher procurement costs. Personnel costs rose by €666 million to €5,947 million (€5,281 million), chiefly because of restructuring expenditures in conjunction with the E.ON 2.0 project. 27
Page 1 and 2: 2011 Annual Report
Page 3 and 4: Contents 2 CEO Letter 4 E.ON Stock
Page 5 and 6: Europe’s energy markets are conso
Page 7 and 8: Dividend At the 2012 Annual Shareho
Page 9 and 10: Global Units We manage all our oper
Page 11 and 12: How will we achieve all this? The f
Page 13 and 14: Top performance requires efficient
Page 15 and 16: The Energy Roadmap 2050 adopts a sc
Page 17 and 18: Macroeconomic Environment In 2011,
Page 19 and 20: Energy Prices Four main factors dro
Page 21 and 22: Attributable Generating Capacity Th
Page 23 and 24: The Russia unit generated about 94
Page 25 and 26: Gas Sales On a consolidated basis,
Page 27: Sales Our sales rose by 22 percent
Page 31 and 32: E.ON generates a significant portio
Page 33 and 34: Distribution Networks’ EBITDA dec
Page 35 and 36: and coal-fired power stations. Of t
Page 37 and 38: Analyzing Value Creation by Means o
Page 39 and 40: Cash Flow and Financial Position E.
Page 41 and 42: In addition to our DIP, we have a
Page 43 and 44: E.ON AG’s Earnings, Financial, an
Page 45 and 46: Employees HR Strategy The knowledge
Page 47 and 48: Workforce Figures At year-end 2011,
Page 49 and 50: Technology and Innovation In 2011,
Page 51 and 52: The ERC was founded in 2006. Its mi
Page 53 and 54: Risk Management and Insurance E.ON
Page 55 and 56: Strategic Risks Our business strate
Page 57 and 58: E.ON is building a hard-coal-fired
Page 59 and 60: waste.” The draft legislation men
Page 61 and 62: In 2012, Sweden will introduce a ne
Page 63 and 64: Due to lower commodity prices and u
Page 65 and 66: We anticipate Renewables’ earning
Page 67 and 68: Opportunities We conduct a bottom-u
Page 69 and 70: Audit Opinion According to § 322 A
Page 71 and 72: CEO Letter E.ON Stock Combined Grou
Page 75 and 76: Additional information on the State
Page 79 and 80:
Business Combinations Business comb
Page 81 and 82:
Newly created goodwill is allocated
Page 83 and 84:
Subsequent costs arising, for examp
Page 85 and 86:
Instruments commonly used are forei
Page 87 and 88:
future exercise price. This amount
Page 89 and 90:
Contingent liabilities are possible
Page 91 and 92:
(2) New Standards and Interpretatio
Page 93 and 94:
and joint operations. The provision
Page 95 and 96:
The amended standard also contains
Page 97 and 98:
Russian Federation. The proceeds fr
Page 99 and 100:
The gains on the disposal of invest
Page 101 and 102:
The decrease in tax expense by €3
Page 103 and 104:
Of the deferred taxes reported, a t
Page 105 and 106:
Stock Appreciation Rights of E.ON A
Page 107 and 108:
The fees for financial statement au
Page 109 and 110:
CEO Letter E.ON Stock Combined Grou
Page 111 and 112:
Page 113 and 114:
Of this total, an amount of €160
Page 115 and 116:
(15) Companies Accounted for under
Page 117 and 118:
The individual impaired receivables
Page 119 and 120:
(20) Additional Paid-in Capital As
Page 121 and 122:
Description of the Benefit Obligati
Page 123 and 124:
Description of Plan Assets Defined
Page 125 and 126:
Taking into account periodic additi
Page 127 and 128:
(25) Miscellaneous Provisions The f
Page 129 and 130:
Advance payments made to other wast
Page 131 and 132:
At year-end 2011, the following EIF
Page 133 and 134:
Construction grants of €2,857 mil
Page 135 and 136:
In Sweden, owners of nuclear facili
Page 137 and 138:
Competition in the gas market and i
Page 139 and 140:
Pursuant to the information availab
Page 141 and 142:
Page 143 and 144:
The fair value of shareholdings in
Page 145 and 146:
The following two tables illustrate
Page 147 and 148:
Risk Management Principles The pres
Page 149 and 150:
A sensitivity analysis was performe
Page 151 and 152:
Virtually all of the investments in
Page 153 and 154:
Under IAS 24, compensation paid to
Page 155 and 156:
Net book gains in 2011 decreased by
Page 157 and 158:
Page 159 and 160:
(34) Compensation of Supervisory Bo
Page 161 and 162:
Notes (36) List of Shareholdings Pu
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
In addition to the Company’s peri
Page 179 and 180:
The Supervisory Board has establish
Page 181 and 182:
and the Consolidated Financial Stat
Page 183 and 184:
Compensation of the Members of the
Page 185 and 186:
The Supervisory Board, at its discr
Page 187 and 188:
the E.ON Group’s ROCE and prior-y
Page 189 and 190:
Compensation of the Members of the
Page 191 and 192:
The remaining other compensation of
Page 193 and 194:
In addition, the Board of Managemen
Page 195 and 196:
We examined the Board of Management
Page 197 and 198:
Klaus Dieter Raschke Chairman of th
Page 199 and 200:
At the Board of Management’s disc
Page 201 and 202:
Further information about financial
Page 203 and 204:
Assessment After companies have doc
Page 205 and 206:
Page 207 and 208:
Glossary of Financial Terms Actuari
Page 209 and 210:
Prepayments and accrued income Line
Page 211:
Financial Calendar May 3, 2012 2012
show all

2011 Annual Report - OTCIQ.com

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?