Sales and turnover significantly increased

Electricity Turnover of the MVV Energie Group¹
kWh million	2004/2005	2003/2004	% change

Wholesale electricity trading (including secondary distributors)	9,334	5,587	+67

Business customers ²	6,637	7,021	-5

Private customers ²	2,058	1,793	+15

	18,029	14,401	+25


¹ excluding electricity turnover in environmental energy and value-added services segments
² correction in previous year

We succeeded in raising our sales in the highly competitive electricity market to Euro 975 million, an increase of Euro 147 million (+18%) compared with the previous year. With a 50% share of overall sales, the supply of electricity is the most important business segment of our group of companies in terms of sales.

The greater part of this sales growth is attributable to strong external growth. The sales contributions of the Stadtwerke Kiel AG (SWK) subgroup, which was consolidated for the first full year, amounted to Euro 146 million. In the previous year, its sales had amounted to Euro 51 million in the five-month period from May to September 2004. Adjusted to account for the impact of the consolidation of SWK, we achieved sales growth of 7% in spite of the market climate remaining difficult. This growth is mainly due to a higher level of sales at the MVV Energie AG parent company, as well as at its shareholdings in Offenbach and Solingen, and is attributable both to price adjustments and to the acquisition of new customers.

One part of the increase in electricity sales at MVV Energie AG is due to the electricity trading business. As in the previous year, only those electricity trading volumes which are directly related to our core business, the generation and supply of electricity to secondary distributors and end customers, have been reported on a gross basis. By contrast, sales relating to the proprietary electricity trading business have, as in the previous year, been reported on a net basis.

Sales volumes in our electricity segment (excluding the electricity turnover reported in the environmental energy and value-added services segments) rose by 14.4 billion kWh compared with the previous year to 18.0 billion kWh (+25%). This growth is attributable to the electricity trading business and, within this area, is partly due to the first full-year consolidation of SWK. The secondary distribution business of Stadtwerke Solingen GmbH has been supplying Stadtwerke Hilden GmbH with electricity since the beginning of 2005. This resulted in an initial electricity turnover of 67 million kWh in the year under report.