2011 Annual Report - OTCIQ.com

36 Financial Condition
Investments
In 2011, our investments declined by about €1.8 billion year
on year to €6.5 billion. We invested about €6.2 billion in property,
plant, and equipment and in intangible assets (prior
year: €7.9 billion). Share investments totaled €0.3 billion versus
€0.4 billion in the prior year.
Our investments outside Germany declined by 21 percent to
€4,709 million (prior year: €5,924 million).
Investments
€ in millions 2011 2010 +/- %
Generation 1,711 2,592 -34
Renewables 1,114 1,260 -12
Gas 1,204 1,244 -3
Trading 24 16 +50
Germany 910 1,083 -16
Other EU Countries 1,210 1,565 -23
Russia
Group Management/
322 433 -26
Consolidation 29 93 -69
Total 6,524 8,286 -21
Maintenance investments
Growth and replacement
1,257 1,110 +13
investments 5,267 7,176 -27
Generation invested €881 million less than in the prior year.
Investments in property, plant, and equipment and intangible
assets declined by €1,020 million, from €2,540 million to
€1,520 million. The high prior-year figure mainly reflects expenditures
on generation projects in Gönyü (Hungary), Malzenice
(Slovakia), Irsching (Germany), Algeciras (Spain), and Émile
Huchet (France), which are now completed. Another factor
was the shutdown of several nuclear power stations in Germany,
which resulted in lower investments in nuclear generation.
In addition, investments in the generation project in Maasvlakte
(Netherlands) were higher in the prior year.
Investments at Renewables were down by €146 million. Hydro’s
investments of €83 million were 14 percent below the prioryear
figure of €97 million. Wind/Solar/Other’s investments
declined by 11 percent, from €1,163 million to €1,031 million.
These expenditures mainly reflect the development and construction
of wind farms in Europe and the United States.
Gas invested €1,204 million. Of this figure, €1,123 million (prior
year: €1,102 million) went towards property, plant, and equipment
and towards intangible assets. It consisted mainly of
investments in the exploration business and in gas infrastructure.
Share investments of €81 million (prior year: €142 million)
were chiefly attributable to the repurchase of E.ON
Bioerdgas from E.ON Climate & Renewables and to a capital
increase at the Nord Stream pipeline company.
The Germany regional unit invested €173 million less than in
2010. Investments in property, plant, and equipment and
intangible assets declined by €165 million to €892 million, owing
principally to lower investment in power distribution and
higher expenditures in the prior year for Plattling power station
and waste-incineration projects. Share investments
totaled €18 million.
Investments at Other EU Countries were €355 million below
the prior-year figure. The UK regional unit invested about
€212 million (prior year: €523 million). The sale of Central Networks
was the main cause for the decline. The Sweden unit’s
investments of €422 million were €5 million less than the prioryear
figure (€427 million). Sweden invested €420 million
(prior year: €425 million) in intangible assets and property,
plant, and equipment to maintain and expand existing distributed
generating units and to upgrade and modernize its
distribution network. Investments of €200 million in Czechia
were at the prior-year level. Investments in Hungary declined
by 7 percent, from €158 million to €147 million.
The Russia unit invested €322 million (prior year: €433 million),
mainly in its new-build program.