Adjustment of reporting to reflect the Group’s new structure
Our financial reporting for the current financial year reflects the new Group structure. As of April 1, 2008, we combined RWE Trading and RWE Gas Midstream to form RWE Supply & Trading GmbH. Gas purchasing activities for RWE Group companies are thus pooled with the energy trading business for electricity, gas, coal, oil and CO2. The new RWE Supply & Trading is now presented as a separate division. Under the old 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. This financial year, the company will remain 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 already 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”
In line with our intention to fully divest American Water, we have classified American Water as a “discontinued operation.” Therefore, figures for the US water utility, which we refer to as the “Water Division,” are no longer included in revenue, EBITDA, the operating result, the non-operating result, the financial result, or taxes on income. In accordance with IFRS, we adjusted the comparable figures for the first three quarters of 2007. As far as capital expenditure and the cash flow statement are concerned, American Water is only included in the figures for 2007.

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 turn to the notes. 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 retroactive changes to the staff costs and taxes on income in the income statement for 2007.


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