europe.on E.ON launched a restructuring project in 2006 called europe.on in order to better seize growth opportunities created by the integration of European energy markets. As part of this project, E.ON optimized its existing regional market struc- tures in Europe and created new functionally oriented (as opposed to geographically oriented) units that will pool knowledge from across the organization and manage their business on a European and, in some cases, global scale. This groupwide project affects a number of activities at the Central Europe market unit. · Central Europe's energy-trading operations (power, gas, coal, oil, and CO2 emission allowances) at E.ON Sales & Trading ("EST") and E.ON Benelux will be transferred to Central Europe Market Unit the new Energy Trading market unit. EST's wholesale and marketing operations will remain part of the Central Europe market unit. · A New Build unit ("NBU") will be formed at Central Europe to manage the expansion of E.ON's diversified and climate- friendly generation portfolio. The NBU will be part of E.ON Kraftwerke ("EKW") and be responsible for the plan- ning and construction of all of E.ON's new conventional power plants in Europe, ensuring that these projects are even more closely tailored to the conditions on the European market. In addition, all of E.ON's engineering expertise will in the future be combined in E.ON Engineer- ing, E.ON's groupwide engineering arm which is part of the Central Europe market unit. · A competence center for conventional generation will be established at EKW, one for nuclear generation at E.ON Kernkraft ("EKK"), and one for hydroelectricity at the Nordic market unit. The purpose of the groupwide compe- tence centers is to promote process optimization and the implementation of best practices across the entire organization. · With the exception of hydroelectricity, E.ON's renewables operations will be managed by the new Climate & Renew- ables market unit. Adjusted EBIT surpasses prior-year figure europe.on project key theme in 2007 regi.on project launched +/­ % +18 +8 +10 +3.31 +0.31 +19 ­ +13 +1 2006 27,197 5,747 4,235 21.4 9.0 2,457 3,802 2,279 43,546 in millions Sales Adjusted EBITDA Adjusted EBIT ROCE (in %) Cost of capital (in %) Value added Cash provided by operating activities Investments Employees (at year end) 2007 32,029 6,222 4,670 24.7 9.3 2,917 3,811 2,581 44,051 1Change in percentage points. Central Europe 86