Change in divisional structure in fiscal 2008.

Our financial reporting for the year under review reflects the changes in the Group’s structure. From April 1, 2008, we combined RWE Trading and RWE Gas Midstream to form RWE Supply & Trading GmbH. As a result, gas purchasing activities for RWE Group companies are pooled with the energy trading business for electricity, gas, coal, oil and CO₂. The new RWE Supply & Trading is presented as a separate division. Under the previous reporting structure, RWE Trading was part of the “Power Generation” Business Unit within the RWE Power Division, and RWE Gas Midstream was included in “Other, consolidation” as part of the RWE Energy Division. We also report RWE Dea, a business unit of RWE Power thus far, as an independent division. The reason for this is that the RWE Group’s upstream business will display above-average growth. To enable comparability with last year despite these reclassifications, we are stating 2007 figures in line with the new structure as well.

New company for renewables-based energy.

We have pooled our activities in the field of renewable energies in “RWE Innogy,” the company which was founded as of February 1, 2008. In the year being reviewed, the company was still assigned to “Other, consolidation.” RWE Innogy has taken over the majority of the installed renewables-based electricity generation capacity from RWE Power, RWE npower and RWE Energy. The reassignment has been taken into account in our financial reporting since January 1, 2008. As the reclassified activities are still relatively small, we have not adjusted prior-year figures.

American Water recognized as a “discontinued operation” again in 2008.

We were unable to sell the majority of the shares in American Water as intended. This was due to the conditions on the capital market, which have worsened considerably. As we still want to fully divest our stake in American Water, we have classified this company as a “discontinued operation.” Therefore, figures for the US water utility (“Water Division”) are no longer included in revenue, EBITDA, the operating result, the non-operating result, the financial result, or taxes on income. This corresponds to our presentation in the 2007 financial statements. As regards capital expenditure and the cash flow statement, American Water is included in the figures for 2007, but not in those for 2008.

Change in method applied to account for pension commitments (IAS 19.93A).

As of 2008, we recognize actuarial gains and losses on defined-benefit pension plans and similar obligations using a new method pursuant to IAS 19.93A. For detailed commentary, please go to the chapter changes in accounting policies. According to IFRS, prior-year figures had to be adjusted accordingly. This primarily affects provisions for pensions and similar obligations, other non-current receivables and other assets, deferred taxes and retained earnings. There are minor retrospective changes to the staff costs and taxes on income in the income statement for 2007.