• Business Framework
• Sustainable Company Development
  • Earnings Position
    • Sales growth due to success in market
    • Development in key items in the income statement
    • Quarterly performance
    • Value-based company management in 2006/07
    • Additional disclosures
  • Earnings Position of Major Shareholdings in Germany
  • Earnings Position of Major Foreign Shareholdings
  • Shared Service Companies
  • Net Asset and Financial Position
  • Basic Features of the Compensation System of the Executive and Supervisory Boards
  • Employees
  • Social Commitment
  • Environmental Protection
  • Overall Summary of Business Performance
  • Powers of the Executive Board to Issue Shares
• Events After the Balance Sheet Date
• Risk Report
• Outlook

Sales growth due to success in market

Sales Volumes of the MVV Energie Group1	2006/2007	2005/2006	% change
Electricity2 in kWh million	24,443	20,484	+19
of which wholesale2 in kWh million	14,152	10,566	+34
of which retail2 in kWh million	10,291	9,918	+4
District heating in kWh million	6,265	7,343	-15
Gas in kWh million	9,456	11,513	-18
Water in m3 million	56.1	57.9	-3
Combustible waste delivered in tonnes 000s	1,409	1,229	+15

1 total volume from all segments

2 correction in previous year's figure

We increased our sales following the deduction of the electricity and gas taxes charged on to customers by 4% to Euro 2.3 billion in the 2006/07 financial year. We thus did not quite reach the sales target of Euro 2.5 billion budgeted including energy taxes. Due to unusually mild weather conditions throughout the 2006/07 heating period, we witnessed an unexpectedly severe downturn in volumes in the district heating and gas businesses.

The year-on-year sales growth was largely due to our electricity trading business, to notable market successes in the nationwide sale of electricity and to external growth in the Czech district heating market. Pleasing levels of growth were also seen in the energy-related service business, which benefited in particular from the initial consolidation of Industriepark Gersthofen Servicegesellschaft mbH & Co. KG (IGS), MVV Energiedienstleistungen Wohnen GmbH & Co. KG, Berlin, and our consulting subsidiary DECON GmbH.

These sales, attributable in part to new business, enabled us to more than offset the substantial decline in sales suffered due to the downturn in volumes in the highly weather-dependent district heating and gas segments.

Of the sales reported by our group of companies for the year under report, 95%, or Euro 2.16 billion, were generated in Germany, and 5%, or Euro 102 million, in other countries. Our foreign markets are Poland and the Czech Republic. Sales in the Czech Republic grew by 31%, or Euro 14 million, in spite of weatherrelated volume downturns in the district heating business. This growth was attributable to the acquisition of a 70% shareholding in the district heating company Teplárna Liberec and in three further district heating systems in neighbouring towns in January 2007. The decline in sales at our Polish subgroup by 15%, or Euro 7 million, was the result of reduced turnover due to weather conditions.