Development of share price influenced by strategic realignment


Key Figures per Share	2003/2004	2002/2003

Earnings (IAS 33) (Euro)	-0.86	3.01

Price/earnings ratio (IAS 33)	–	5.1

Dividend (Euro)	0.75¹	0.75

Dividend yield ² in %	5.2	4.9

Equity ³ (Euro)	12.02	13.76


¹ pending approval by the Annual General Meeting on 4 March 2005
² based on closing price in Frankfurt/Main on 30 September
³ excluding minority interests

The share of MVV Energie AG started the 2003/04 financial year on a positive note, rising to reach its annual high of Euro 17.25 on 9 March 2004 shortly before the Annual General Meeting. Following the Annual General Meeting, the share price initially declined on account of the dividend payment and subsequently came further under pressure as a result of the restructuring expenses expected to be incurred in the course of the company's strategic realignment. Speculation in the summer as to the need for possible write-downs on our shareholdings had a further negative impact on our share price. The share declined to Euro 11.70, its lowest closing price in the 2003/04 financial year, on 20 July 2004.

In order to provide clarity at as early a stage as possible as to the ongoing value of the shareholdings and goodwill of MVV Energie AG, the Executive Board brought forward the impairment tests usually undertaken upon the compilation of the annual financial statements. The publication of a lower level of required write-downs than had generally been expected, coupled with the successful completion of the restructuring programme, resulted in the share price increasing to Euro 14.55 (24 September 2004). At the end of the financial year on 30 September 2004, the share price amounted to Euro 14.50 and was thus 4.9% down on the closing price for the previous year.

Our comparative indices, the SDAX and Prime Utilities, rose during the financial year by 17.3% and 53.9% respectively. For the first time since the 1999/2000 financial year, the performance of both indices was therefore better than that shown by the share of MVV Energie AG, which had long withstood the downward trend on the stock markets.

In terms of its free float market capitalisation, the MVV Energie AG share occupied the 85th position in the SDAX at the end of the financial year and the 100th position in terms of its stock market turnover.

Pleasing developments were seen in the volume of stock market turnover involving our share. This virtually doubled once more to reach around Euro 42 million. Rising trading volumes facilitate the tradability of a share and thus make it more attractive, especially to institutional investors. In order to increase the turnover of our share even further, we are testing the GateM offer on the Stuttgart Stock Exchange, whose features include the guarantee of a lower margin between purchasing and selling prices.