Combined Group Management Report Corporate Profile and Operating Environment Corporate Structure and Operations in 2007 E.ON is one of the world's largest investor-owned energy services providers. Our roughly 88,000 employees generated 68.7 billion in sales in 2007. E.ON operates along the entire value chain in power and gas. These operations are organized in market units in line with the structure of our respective target markets. We are focused on our target markets: Central Europe, the United Kingdom, Northern Europe, and the Midwestern United States. In 2008, we have added, or intend to add, two geographically segmented market units (Russia and Italy) and two functionally segmented market units (Climate & Renewables and Energy Trading). The result- ing changes to our market unit structure and segment report- ing are discussed in the Forecast on page 68. The Corporate Center's 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. We take a value-oriented management approach aimed at improving our competitiveness and delivering profitable growth. The Corporate Center/New Markets segment consists of Düsseldorf-based E.ON AG and the ownership interests man- aged directly by E.ON AG itself. The new market units 26 Adjusted EBIT up 10 percent Cash provided by operating activities above prior-year level Management to propose raising dividend to 4.10 Higher adjusted EBIT expected for 2008 E.ON Group1 in millions Sales Adjusted EBITDA Adjusted EBIT Net income Net income attributable to shareholders of E.ON AG Adjusted net income ROCE (in %) Value added Cash provided by operating activ- ities of continuing operations Economic net debt (at year end) Investments Employees (at year end) 2006 64,091 11,724 8,356 6,082 5,586 4,682 13.8 2,916 7,161 ­18,233 5,037 80,612 +/­ % +7 +6 +10 +27 +29 +9 +0.72 +17 +22 ­32 +124 +9 2007 68,731 12,450 9,208 7,724 7,204 5,115 14.5 3,417 8,726 ­24,138 11,306 87,815 1All subsequent commentary for the E.ON Group also applies to E.ON AG. 2Change in percentage points.