Continuity and Change

Mr. Hartung, you have headed MVV Energie for the past 15 years. What was it that motivated you to take MVV Energie public in 1999 as the first and to date only municipal and regional energy utility to do so in Germany?

Hartung: The regulatory framework in our sector and thus for our company has been fundamentally changed by liberalisation of the electric power and gas markets in 1998. From the very beginning, we perceived competition on the energy markets both as a major challenge as well as a major opportunity for MVV Energie. In order to hold our own in the face of mounting competition, we have decided on a growth strategy. After careful consideration of the options, we obtained the equity needed for such a strategy via our IPO – at the time a very bold decision. In retrospect, we are convinced that our decision was correct based on developments in our corporate indicators. Without our IPO, our successful growth course over the past few years would definitely not have been possible.

Since the IPO, the share price of MVV Energie AG‘s stock has never stayed very long above the issue price of Euro 16, despite positive developments in earnings. Do you have an explanation for this?

Hartung: For most stockbrokers and investors, the last two years in particular have been a disaster. In the course of the last three years, our comparative indices, SDAX and Prime Utilities, alone lost 27% and 22%, respectively. By comparison, our share price has succeeded in holding its own. There are only a few stocks that have remained as stable as ours in the face of such a plunge in share prices.

However, the share-price potential of our stock has been restricted by the comparatively low free float of only 12.2% at present. The free float will indeed rise if we implement the planned increase in share capital in the course of a second public offering at an opportune time. The liquidity and availability of our stock will thus also improve, thereby making it more attractive for institutional investors.

Dr. Schulten, you took over as CEO from Mr. Hartung on October 1, 2003. What attracted you to make the move from Bewag AG in Berlin to MVV Energie in Mannheim?

Schulten: I have been following the impressive developments at MVV Energie with considerable interest for some time now. And by the way, not only for professional purposes, but also for personal reasons, as I grew up in the vicinity of Mannheim, along the Bergstraße, between Heidelberg and Weinheim.

MVV Energie is a publicly listed utility with a sound business model and is well positioned on today’s liberalised energy markets. This has also been shown in the way MVV Energie has developed since the IPO: Within just a few years it has evolved from a classic municipal and regional public utility to a highly successful, major national and international energy-distribution enterprise and value-added services provider. This speaks for its dynamism, innovative power and adaptability. I was – and am still – attracted by the challenge of continuing to push MVV Energie‘s corporate development even further.