As of December 31, 2008, our net debt amounted to €18.7 billion. We have given this figure a new definition: In the past, net debt equalled net financial debt plus provisions for pensions. In 2008, we started including provisions for nuclear waste management and mining damage. The surplus of plan assets over benefit obligations is subtracted. To ensure comparability, we have also calculated the prior-year figure using the new definition.

The RWE Group’s net debt was up €2.1 billion from the end of 2007. We had originally expected to decrease it further over the course of the year, on condition that we sell the majority of American Water by the end of 2008. This would have allowed us to deconsolidate the US water company’s debt. As explained in the chapter IPO American Water, this has not happened yet. Therefore, we were unable to fully offset the debt-increasing effects caused by the share buyback (€2.5 billion) or the dividend payments (€2.0 billion). Capital expenditure also contributed to the rise in liabilities. Our cash flow from operating activities of €8.9 billion exceeded the year-earlier level and had a counteracting impact. On balance, currency effects reduced debt by €0.9 billion. The weakness of Sterling played a major role.