2011 Annual Report - OTCIQ.com

Global Units
We manage all our operations in Europe’s converging markets
on a cross-border basis through functionally segmented
entities called global units.
Four of our global units are reporting segments: Generation,
Renewables, Gas, and Trading (see the Forecast section for
our new segmentation effective 2012). A fifth, New Build &
Technology, is not.
New Build & Technology brings together our comprehensive
project-management and engineering expertise to support
the construction of new power plants and the operation of
existing plants across E.ON. This unit also coordinates our
Group-wide research and development projects for the E.ON
Innovation Centers.
Generation
Our generation fleet is one of the biggest and most efficient
in Europe. We have major asset positions in Germany, the
United Kingdom, Sweden, Italy, Spain, France, and the Benelux
countries, giving us one of the broadest geographic footprints
among European power producers. We also have one of the
most balanced fuel mixes in our industry.
The Generation global unit consists of all of our conventional
(fossil and nuclear) generation assets in Europe. It manages
and optimizes these assets across national boundaries.
Renewables
Our Renewables global unit plays a key role in expanding
renewables capacity in many countries across Europe and the
world. Renewables are good for the environment and have
great potential as a business. This is why we are steadily
increasing renewables’ share of our generation portfolio and
aim to play a leading role in this growing market. We continually
seek out new solutions and technologies that will make
the energy supply more environmentally friendly. We therefore
make significant investments in wind, biomass, solar, and
marine energy.
Gas
Our Gas global unit operates along the entire gas value chain.
It has a growing exploration and production business and
is also active in the global liquefied natural gas business. We
rank among Europe’s largest gas companies and supply gas
to resellers (regional and municipal utilities), large industrial
customers, and gas-fired power stations in Germany and in
other European countries. Our geographically diverse portfolio
of long-term supply contracts with key producing countries
CEO Letter
E.ON Stock
Combined Group Management Management Report
Consolidated Financial Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
makes us a mainstay of gas supply security in Europe. We are
also engaged in gas storage in Germany, Austria, Hungary,
and the United Kingdom and in gas transmission in Germany.
Trading
As the link between E.ON and the world’s wholesale energy
markets, our Trading global unit buys and sells electricity,
natural gas, oil, coal, freight, biomass, and carbon allowances.
It ensures the best-possible utilization of our generation
fleet in Europe, trades and procures worldwide the fuel and
carbon allowances needed to operate this fleet, and locks
in margins for our generation in forward markets. By doing
so, it aggregates and minimizes our commodity price risk.
Regional Units
Twelve regional units manage our operating business in
Europe. They are responsible for sales, regional energy networks,
and distributed generation. They are also close partners of
the global units operating in their respective region, for which
they provide a broad range of important functions, such as
HR management and accounting. In addition, they are the sole
point of contact for all stakeholders, including policymakers,
government agencies, trade associations, and the media.
In 2011, we were active in the following countries: Germany,
the United Kingdom, Sweden, Italy, Spain, France, the Netherlands,
Hungary, Czechia, Slovakia, Romania, and Bulgaria.
Russia is a special focus country, where our business centers
on power generation. This business is not integrated into
the Generation global unit because of its geographic location
and because Russia’s power system is not part of Europe’s
integrated grid.
In addition, through E.ON International Energy (which is not
a reporting segment) we want to work with local partners to
develop renewable-source and conventional generating
capacity in attractive, fast-growing regions outside Europe.
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