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Volume growth in spite of downturns in Poland

Sales volumes in our district heating segment rose year-on-year by 7% to 5.6 billion kWh. Of total district heating turnover, 94 % is attributable to district heating and 6% to steam. In the district heating business, sharp weather-related volume growth in the 2007/08 heating period compared with the unusually mild winter in 2006/07 more than offset the reduction in volumes reported mainly in the private and business customer segment, not least due to the sale of our Polish shareholdings.

Sales volumes at the Czech subgroup, MVV Energie CZ s.r.o., Prague, showed substantial growth of 33% to
0.9 billion kWh. This was mainly due to sales volumes at new district heating shareholdings consolidated for the first full year of operations in 2007/08.

The increased steam turnover was attributable to the Kiel and Czech subgroups. The steam and district heating resulting from the incineration of waste and biomass is reported in the environmental energy and value-added services segments.