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interruptions or declines will not occur. Any prolonged inter-
ruption or decline in the amount of gas delivered to E.ON
Ruhrgas under its contracts with Gazprom, its subsidiaries or
any other party would result in E.ON Ruhrgas having to use
its storage reserves to make up the shortfall with respect to
amounts it is contracted to deliver to customers and could
have a material adverse effect on E.ON's results of operations
and financial condition.
The demand for electric power and natural gas is seasonal,
with our operations generally experiencing higher demand
during the cold weather months of October through March
and lower demand during the warm weather months of
April through September. The exception to this is our U.S.
power business, where hot weather results in an increased
demand for electricity to run air conditioning units. As a
result of these seasonal patterns, our sales and results of
operations are higher in the first and fourth quarters and
lower in the second and third quarters, with the U.S. power
business having its highest revenues in the third quarter
and secondary peaks in the first and fourth quarters. Rev-
enues and results of operations for all of our energy opera-
tions can be negatively affected by periods of unseasonably
warm weather during the autumn and winter months, as
occurred at some of our market units in 2006 and/or 2007.
Our Nordic market unit could be negatively affected by a
lack of precipitation (which would lead to a decline in hydro-
electric generation, as occurred in 2006), and our European
energy operations could also be negatively affected by a
summer with higher-than-average temperatures to the
extent our plants would be required to reduce or shut down
operations due to a reduction in the availability of cooling
water. We expect seasonal and weather-related fluctuations
in sales and results of operations to continue.
IT Risks
The operational and strategic management of the E.ON
Group relies heavily on complex information technology. Our
IT systems are maintained and optimized by qualified E.ON
Group experts, outside experts, and a wide range of techno-
logical security measures. In addition, the E.ON Group has in
place a range of technological and organizational measures
to counter the risk of unauthorized access to data, the mis-
use of data, and data loss.
Management's Evaluation of the Risk Situation
During the year under review, the E.ON Group's risk situation
did not change substantially from the prior year. From today's
perspective, we do not perceive any risks in the future that
would threaten the existence of the E.ON Group or individual
market units.
67To Our Shareholders
Supervisory Board
Year in Review
Combined Group Management Report
Additional Information
Market Units
Corporate Governance
Consolidated Financial Statements
Tables and Explanations