E.

ON Climate & Renewables An overview of our business activities

November, 2009

The Renewables Business Our Core Beliefs E.ON Climate & Renewables Strategy & Track Record Business Spotlight Offshore Wind Conclusion Back-Up

Renewable Energies from Boutique to Industrial

Wind energy as a perfect example for the industry development
1980 to 2000 Growth: Players: < 1 GW p.a., regional True believer and niche supplier Project Size: Turnover:
1.000 800 Global wind capacity (GW) 600 400 200 0 1980
Sources: GWEC; EER

Since 2000 > 10 GW p.a., worldwide International suppliers and industrial players (e.g. utilities) Gigawatt scale ~160 bn (2008); ~400 bn (2020e), p.a.

Kilowatt scale <10 bn, p.a.

Expected growth 20102020 +700 GW

Growth 1980-2000 +18 GW 2000

Growth 2000-2010 +138 GW

2005

2010

2015

2020
3

A snapshot of the Renewables landscape: Some similarities, many differences

Wind Global capacity [GW] Biomass Solar Marine energy

120
2008 2020

900

50

110

13

157

0,3 1,2

Long-term feasible potential worldwide [GW] ~5.000 Current technology maturity

Sources: E.ON; IEA; BTM; CIT; WEC; WEA

~2.000 Advanced

~50.000 Step changes in technology possible

~5.000 Proof-of-concept & technology tracking

4

Renewable energy at E.ON

Our strategy: One key theme with clearly defined cornerstones
Industrialization of the whole value chain and commercial discipline Leverage on E.ON core competencies, market position and reputation

EC&R key theme: From Boutique to Industrial

High portfolio discipline: focus on growth markets and growth technologies

Strategic partnerships

Safety as top priority

5

Set-up of E.ON Climate & Renewables (EC&R) to achieve ambitious Renewables targets
EC&R remit
Setting strategy, portfolio and the investment plan for Renewables Managing all existing and future Renewables operations Carbon sourcing (JI/CDM) for the entire E.ON Group
34%

E.ONs generation portfolio

13% 15% ~18% ~12% ~30% ~36% ~11% ~22% 38%
18% ~ 30%
>50% zero Carbon 3

Renewables capacity 1
~10

34%

Driving E.ON's key growth aspirations Spearheading E.ON's activities in emerging markets

~40%

~ 11%
~31%
~ 12%

<50% low Carbon 2

~4

2008 2008

Renewables (incl. large hydro) Nuclear

2015 2015

2030 2030
Coal Gas

2007

2010

2015

E.ON is investing about 8 bn in Renewables from 2007-2011 and will decrease own CO2 emissions by 50% until 2030
1

Excluding large hydro 2 Low carbon: natural gas/oil; coal without CCS 3 Zero carbon: Renewables (incl. hydro); nuclear; coal (with CCS)

The Renewables Business Our Core Beliefs E.ON Climate & Renewables Strategy & Track Record Business Spotlight Offshore Wind Conclusion Back-Up

Disciplined management of technologies and markets

EC&R focus is set on most attractive
Industrial scale application First commercial plants Proof-of-concept & technology tracking

technologies
EC&R technology selection criteria Scalability Growth potential Financial attractiveness Wider E.ON Group interest Closeness to E.ON capabilities Wind Onshore Solar PV / ThinFilm Applications Wave / Tidal Wind Offshore Coastal Biomass Biogas / Biomethane, Inland biomass Solar / CSP

and markets.

Core activities for 2009 and beyond

Despite challenging market conditions we have continued to grow at pace

EC&R Capacity Development (MW) 2009 Key Facts We saw a 50% increase of production capacity to 2,903 MW (11/2009) EC&R erected two wind turbines on average per day YE capacity will grow beyond 3,000 MW Commissioning of Roscoe wind farm (782 MW, 09/2009, US), worlds largest wind farm Completion of Alpha Ventus1 (60 MW, 11/2009), Germanys first offshore wind farm Commissioning of 1st Solar PV farm Le Lauzet (1 MW, 07/2009, France) Acquisition of solar project developer Societ Conilhac (06/2009, France)
1

JV of EC&R (26.25%), EWE (47,5%) and Vattenfall Europe (26,25%)

Focus on the most attractive markets: current footprint

Installed Renewables capacity as of November 2009 (MW1)
245 1,721 57 Nordic UK 351 278 2,903
90 Other

North America

Iberia 208 Italy

2,813

Renewables

Wind

Germany 43 Europe (others)

1

E.ON Equity MW (Figures rounded), excluding large hydro Source: E.ON

10

Key projects build the basis of a robust portfolio

Technology Installed Capacity (MW) Major Operational Projects1 Key Projects under Construction1

Wind onshore

2,700

Roscoe (782 MW), US Panther Creek (458 MW), US

Wielkopolska (48 MW, 2009), PL Barao Sao Joao (50 MW, 2009), ES London Array3 (630 MW, 2012), UK Robin Rigg (180 MW, 2010), UK Rdsand II (207 MW, 2010/11) , DK

Wind offshore

113

Scroby Sands (60 MW), UK Alpha Ventus2 (60 MW), GER

Biomass

44

Stevens Croft (44 MW), UK

Biogas/Biomethane

20

Stevens Croft (44 MW), UK

Solar PV/CSP

Le Lauzet I (1MW), F (2009) Thin film JV Malibu with Schco

Helioenergy I (50 MW, 2011/12), ES Helioenergy II (50 MW, 2011/12), ES Le Lauzet II (2.5 MW, 2009), F

Marine

n/a

Venture with Pelamis (2010), UK

Indicative please see Back-Up for complete project overview 2 Joint Venture of E.ON (26.25%), EWE (47.5%) and Vattenfall (26.25%) 3 Joint Venture of E.ON (30%), DONG (50%) and Masdar (20%)

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EC&R Development Pipeline

Figures as of 11/2009 (MW)
MW North America
Onshore Wind

MW Share
9.496
9.496

55%
100%

Europe
Onshore Wind Offshore Wind Others

7.617
3.369 3.482 766

45%
44% 46% 10%

Geographically balanced development pipeline Wind energy as core activity Increased focus on European offshore sector

E.ON Equity MW (Figures rounded) Source: E.ON

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Onshore Wind

Our Boutique to Industrial approach is starting to pay off

Boutique to Industrial results
Status Quo YE 2007 Wind farm size (MW) Wind turbine size (MW) # Wind turbine OEM # Wind turbine types
15 1.4 9 53

New Build 2008/2009

75 1.9 8 13

Trend

Clear steps towards industrialization both in operations and procurement start creating value to our business

2007 Wind turbine availability

91%

2009
94%

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Onshore Wind

Continuous cost improvements are critical to success

Excellence in operations and procurement are key to profitability

Key Facts
Procurement and O&M make up for more than 80% of total cost Procurement as major performance driver 10% cost reduction yields 100bp higher IRR
O&MCosts TurbineCosts ElectricalSystemCosts ConstructionCosts DevelopmentCosts

Focus on procurement and O&M drives return improvements through both costs (efficiency) and revenues (e. g. availability)
% = NPV cost item / NPV total cost 14

Onshore Wind

Boutique to Industrial will stay our fundamental driver

SCADA1 Optimized spare part concept CMS3 and predictive maintenance Access to critical equipment and tools Proper and complete documentation Scale of projects and harmonized WTG2 use Spare part pooling

2011 target availability 98%

Widen O&M contracts

2011 target O&M cost reduction -10%

Optimized share of 3rd party O&M O&M framework agreement

We will stay at the forefront of industry development both in wind and other Renewables technologies
1

Supervisory Control And Data Acquisition 2 Wind Turbine Generator 3 Condition Monitoring System

15

Solar

Solar will be the next wind and we want to stand on two legs: PV1 and CSP2
100,000

Wind and Solar installed capacity per year

Global Capacity Wind in MW Global Capacity Solar PV in MWp3

Installed capacity [GW] 2008 2020

~140

Installed Capacity Worldwide (MW)

90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000

PV CSP

13

>1

~20

Global Feasible Potential [GW] 50,000 - 80,000

1993 2002 1995 2004 1997 2006 1999 2008E 2001 2010E 2003 2012E 2005 2007

0 Wind Time Scale 1991 PV Time Scale 2000

PV = Photovoltaic 2 CSP = Concentrated Solar Power 3 Megawatt peak: maximum electric power output of a solar cell Sources: EPIA; GWEA; EWEA

16

Solar

EC&R footprint in the solar business

Solar Photovoltaics (PV)
Acquisition of Socit Conilhac, a developer of photovoltaic projects in France Recent opening of first E.ON solar PV farm, Le Lauzet I, France Start of Construction of Le Lauzet II, France (COD 2009) production of thin-film modules (40 MW/yr) Malibu1

Concentrated Solar Power (CSP)

Market entry achieved 50/50 partnership with Abengoa Solar for the development of
two 50 MW CSP Plants in Southern Spain ~550m partnership investment COD planned for 2011/12

Abengoa Solar and E.ON aiming to extend partnership to further develop solar power

EC&R will continue to expand its solar activities to build a strong 2nd leg besides our wind business
1 Joint

Venture of EC&R (50%) and Schco (50%)

17

Emerging Technologies

Selective engagement in technologies besides wind & solar

Biomass portfolio
UKs largest dedicated wood burning plant (Stevens Croft, 44 MW) Further projects (~450 MW) in development

Biomethane portfolio

German market leader for industrial scale Biomethane plants Europes largest Biomethane plant Schwandorf (95 GWh, p.a.) Total portfolio of 400 GWh (p.a.) by end of 2009

Marine portfolio

Extensive evaluation of technology readiness since 2005 Purchase of second generation Pelamis device (750 kW) Commissioning of 1st application planned for 2010

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Carbon Sourcing

EC&R has a clear Carbon Sourcing strategy

EC&R Carbon Sourcing Current Footprint Strategic Partnership with Bionersis EC&R pre-finances agreed upon projects and receives 25% of the generated CERs for free 1st project: KPS landfill, Thailand, 190.000 CERs p.a. Portfolio will reach 20 Mton CO2e by end 2009 MENA Strong local partners Focus areas on the Make1 side EC&R takes a global opportunisitic approach on the Buy2 side Southeast Asia/China Local office in KL Russia Make with OGK4 in Russia

EC&R is positioned to be one of the leading market players worldwide

1 Make:

EC&R as project developer and minority shareholder in offset projects 2 Buy: EC&R buys offset certificates from existing projects

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Market Unit EC&R Key Data

In million Installed Capacity (MW) Generation (GWh) Revenues Adjusted EBITDA Adjusted EBIT Operat. Cashflow Investments Employees Q3/2008 1,792 2,100 270 79 23 -42 907 499 Q3/2009 2,652 3,600 315 207 104 222 753 652 Change +48% +71% +17% +162% +352% -17% +31%

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The Renewables business Our core beliefs E.ON Climate & Renewables Strategy & track record Business Spotlight Offshore Wind Conclusion Back-Up

21

Offshore is more than onshore in the water

Onshore Resources Dimensions Environment 2,000 full load hours per year Limited space available Wind farms of 20 -50 MW Capex of 30 70 mn per wind farm Smooth conditions Unrestricted access at all times (24/7) Offshore 4,000 full load hours per year Large space available Wind farms of 100 1,000 MW Capex of 1 3 bn per wind farm Rough marine conditions Limited access of 0% - 70%

Offshore wind energy requires substantially different technologies and processes compared to onshore wind energy

22

EC&R a market leader in offshore wind energy

E.ON is the only player amongst the global Top-10 Renewables companies with a strong position in offshore wind energy More than 1,000 MW of offshore wind farms in operation and under construction in UK, Denmark and Germany First deep water, far-shore wind farm Alpha Ventus1 in operation (60 MW, Germany) Phase 1 of worlds largest offshore wind farm London Array2 (1,000 MW) under construction Unique, diversified project pipeline of 3.1 GW E.ON has so far invested about 1 bn into its offshore activities E.ONs experience from its various projects sums up to a strong offshore wind expertise

1 JV

of EC&R (26.25%), EWE (47,5%) and Vattenfall Europe (26,25%)

JV of EC&R (30%), DONG (50%) and Masdar (20%)

23

Offshore plays a key role in EC&R strategy

20:20 Envelope
Water depth [m]

EC&Rs strategy Our strategy is based on a stepwise approach:

Develop offshore wind energy across a range of projects and locations Build capability in least challenging conditions first Continuous learning and improvement from real projects out in the sea Develop improvements and solutions across the whole value chain
35 40

EC&Rs offshore wind energy portfolio

Alpha Ventus3 ArkonaBecken Delta North Sea Amrumbank West

40 35 30 25

Scarweather Sands Beta Baltic Humber Gateway 20 Scroby 15 Sands London Array2 10 Nysted1

5 Blyth
Roedsand II

Robin Rigg

20:20 Envelope

0 0 5
Bubble size = 200 MW
In operation

10

15

20

25

30

Translate all learnings into development of the next level of challenge

Distance to shore [km]

Under construction Under development

1 Joint

Venture (JV) of EC&R (20%) and DONG (80%), 2 JV of EC&R (30%), DONG (50%) and Masdar (20%), 3 JV of EC&R (26.25%), EWE (47,5%) and Vattenfall Europe (26,25%)

24

EC&R Offshore Road Map

A clear commitment to realize a range of options
Past Nordic
Nysted (DK)1 160 MW
Scroby Sands, 60 MW Blyth, 4 MW

Today
Rdsand 2 (DK) 210 MW Robin Rigg 180 MW Alpha Ventus3 60 MW London Array2 630 + 370 MW

Future options
Swedish Offshore

UK

UK Offshore

Germany

Cuxhaven 5 MW (test)

German far-shore Projects

Joint Venture (JV) of EC&R (20%) and DONG (80%), 2 JV of EC&R (30%), DONG (50%) and Masdar (20%), 3 JV of EC&R (26.25%), EWE (47,5%) and Vattenfall Europe (26,25%)

25

The Renewables business Our core beliefs E.ON Climate & Renewables Strategy & track record Business Spotlight Offshore Wind Conclusion Back-Up

26

EC&R has continued its strong delivery and will stay the course for industry leadership
The strong expansion of EC&Rs activities is supported by major investments of 8 bn by 2011 A quarter of E.ONs generation investments 2010/2011 goes into renewable energy EC&R will further extend its renewable generation from 2.9 GW today to about 10 GW in 2015 Portfolio discipline and operational excellence as key success factors Renewables have become a core activity of the E.ON group

27

The Renewables business Our core beliefs E.ON Climate & Renewables Strategy & track record Business Spotlight Offshore Wind Conclusion Back-Up

28

Assets in operation: Germany (Wind)

Project (Location) 5 13 12 9 14 13 2 15 20 6 10 8 11 3 17 16 19 1 21 4 5 6 4 7 8 9 18 1 2 Brandenburg Mecklenburg Vorpommem Sachsen Anhalt Sachsen Kessin Schnerlinde Riethnordhausen Rheiner Windpark Dargeltz Helmstedt-Treue Treue-Ost Cuxhaven Alpha Ventus Total (MW) Net capacity MW* 50.8 36.7 19.9 23.6 0.4 0.8 7.4 2.5 22.0 8.0 8.0 2.5 16.0 198.6 Year 2001 2001 2002 2004 2002 2002 2007 2002 2006 2005 2007 2006 2009

Potsdam
3 7

Essen

Dsseldorf

10 11 12

Onshore wind Biogas Biomethane** Office

* E.ON Equity MW (Figures rounded). Source E.ON ** Biomethane production is not included in the overall MW portfolio. (Project/Location: Schwandorf; Net capacity: 95 GWh/a ; Status: in operation; Year: 2008)

13

Munich

29

Assets in operation: Germany (Biogas)

5 12 9 14 13 2 15 20 22 10 8 11 6 18 1 17 16 19 21 Project (Location) 13 14 15 16 17 18 4 19 20 Ducherow Malchin Roggenhagen Frstenwalde Hasenwinkel Ketzin Sauen Kaakstedt Sembten Havelberg Total (MW) Net capacity MW* 0.9 3.7 0.1 0.5 0.4 0.7 0.4 0.8 1.6 0.4 9.5 Year 2008 2007 2005 1999 2007 2007 2007 2006 2008 2009

Potsdam
3 7

Essen

Dsseldorf

21 22

Onshore wind Biogas Biomethane** Office

Munich

* E.ON Equity MW (Figures rounded). Source E.ON ** Biomethane production is not included in the overall MW portfolio. (Project/Location: Schwandorf; Net capacity: 95 GWh/a ; Status: in operation; Year: 2008)

30

Assets in operation: France

Project (Location) 1 1 2 3
3/4

Net capacity MW* 6.5 6.5 6.5 2.4 6.5 1.0 29.4

Year 2007 2008 2008 2008 2008 2009

Lehaucourt Ambon LV Cernon CE Cernon Muzillac Le Lauzet (solar) Total (MW)

Paris

4 5

Onshore wind Solar PV Office

* E.ON Equity MW (Figures rounded). Source E.ON 31

Assets in operation: Iberia (Spain)

10 11 6 13 9 1 7 1/2 2 3 4 Project (Location) Juneda (Lerida) VAG (Lerida) Giribaile (Jan) E2I project (Murcia) Ascoy Bodenaya Zaragossa Carceln Pramo de Poza Pax Pico Gallo Mingorrubio Sierra de Tineo Total (MW) Net capacity MW* 4.3 6.0 20.0 5.3 1.5 18.0 125.6 11.4 15.0 19.2 24.4 26.0 44.0 320.7 2004 2002 1997 2001 2009 2009 Year 2001 2004 2007 1959 1998 2005

Madrid
8 12 5 3 4

5 6 7 8 9 10 11 12 13

Onshore wind Biogas Small hydro Office

* E.ON Equity MW (Figures rounded). Source E.ON

32

Assets in operation: Iberia (Portugal)

Project (Location) 1 2 3 Joguinho (Torres Vedras) Alto Folgorosa Espinhao de Co Total (MW) Net capacity MW* 11.7 8.1 10.0 29.8 Year 2006 2008 2008

2 1

Lisbon

Onshore wind Office

* E.ON Equity MW (Figures rounded). Source E.ON

33

Assets in operation: Italy

Project (Location) Net capacity MW* 20.0 24.0 32.0 44.0 20.0 44.0 14.0 42.0 38.0 278.0 Year 2004 2006 2007 2006 2006 2007 2005 2007 2007

Milan

1 2 3 4 5 5 6

Florinas Vizzini Trapani Montecute Poggi Alti Marco A. Severino Iardino Serra Pelata Piano di Corda Total (MW)

Rome

7 8 9

4 7 6 8/9

Onshore wind Office

* E.ON Equity MW (Figures rounded). Source E.ON

3 2
34

Assets in operation: Nordic

Project (Location) 1 2 3 Southern Sweden Nysted 1 (Gedser) Lilla Siglajvs 1&2 Total (MW) Net capacity MW* 20.6 33.1 3.6 57.3 Year 2001-2007 2003 2009

Onshore wind Offshore wind Office

* E.ON Equity MW (Figures rounded). Source E.ON

1 2

Malm

35

Assets in operation: North America

Project (Location) 1 2 3 Forest Creek (Texas) Sand Bluff (Texas) Munnsville (New York) Roscoe (Texas) Champion (Texas) Panther Creek (Texas) Inadale Ph 1/2 (Texas) Pyron (Texas) Papalote (Texas) Stony Creek (Pennsylvania) Total (MW) Net capacity MW* 124.2 90.0 34.5 209.0 126.5 458.0 197.0 249.0 180.0 52.5 1,720.7 Year 2007 2008 2007 2008 2008 2008 2008/ 2009 2009 2009 2009

Chicago

4 5 6 3

8 4 5 6 2 9 1 7

10

7 8 9 10

Austin Onshore wind Office

* E.ON Equity MW (Figures rounded). Source E.ON

36

Assets in operation: Poland

1 2 1 Project (Location) Lebcz 1 (Danzig) Lebcz 2 (Danzig) Total (MW) Net capacity MW* 5.9 7.4 13.3 Year 2007 2008

Szczecin

Onshore wind Office

* E.ON Equity MW (Figures rounded). Source E.ON 37

Assets in operation: UK (Part 1)

Project (Location) 1 2 3 5 4 22 2 17 11 6 7 8 9 1 12 15 13 16 21 3 19 10 9 20 4 5 6 7 8 Bowbeat (Scotland) Deucheran Hill (Kintyre Peninsular) Great Eppleton (Northumberland) Holmside (County Durham) High Volts (County Durham) Hare Hill (County Durham) Lowca (Cumbria) Total (MW) 31.2 15.8 repower 5.1 7.8 5.1 4.6 81.5 2004 2004 2004 2000 2002 2001 Askam (Cumbria) Bessy Bell (Northern Ireland) Blood Hill (Norfolk) Net capacity MW* 4.6 5.0 2.3 Year 1999 1995 1992

10

14

Onshore wind Offshore wind Biomass Office

Coventry
18

* E.ON Equity MW (Figures rounded). Source E.ON

38

Assets in operation: UK (Part 2)

Project (Location) 11 12 13 4 22 2 17 6 11 7 8 9 1 12 15 13 16 14 3 19 21 18 19 20 21 22 18 St. Breock (Cornwall) Stags Holt (Cambridgeshire) Blyth (Northumberland) Scroby Sands (Great Yarmouth) Stevens Croft (Lockerbie) Total (MW) 5.0 18.0 4.0 60.0 44.0 163.6
39

Net capacity MW* 5.4 9.1 4.6 2.4 3.6 3.3 4.2

Year 1996 2002 1993 1997 1992 1993 1996 1994 2007 2000 2004 2008

Oldside (Cumbria) Out Newton (Northumberland) Ovenden Moor (Yorkshire) Rheidol (Wales) Rhyd-y-Groes (Wales) Royd Moor (Yorkshire) Siddick (Cumbria)

14 15 20 16 17

10

Onshore wind Offshore wind Biomass Office

Coventry

* E.ON Equity MW (Figures rounded). Source E.ON

Projects under Construction

Project Wielkopolska Barzowice I Great Eppleton (repower) Robin Rigg Rodsand 2 La Victoria Matabuey Barao Sao Joao (PEB) London Array Le Lauzet II Total (MW) Country Poland Poland UK UK Denmark Spain Spain Portugal UK France Technology Onshore Wind Onshore Wind Onshore Wind Offshore Wind Offshore Wind Onshore Wind Onshore Wind Onshore Wind Offshore Wind Solar PV Net capacity (MW*) 48.0 20.7 8.0 180.0 207.0 24.0 14.4 45.0 189.0 2.5 738.6 Planned COD 2009 2009 2010 2010 2010/11 2010 2009 2009 2013 2009

* E.ON Equity MW (Figures rounded). Source E.ON

40

This presentation 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.

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