The structure and development of equity have been presented in the “Statement of changes in equity”.

SHARE CAPITAL: The share capital of MVV Energie AG amounts to
Euro 168 721 thousand and is divided into 65 906 796 individual registered shares of Euro 2.56 each. All registered shares are paid up in full. The City of Mannheim indirectly owned 50.1 % of the share capital as of 30 September 2009, while RheinEnergie AG held 16.3 % and EnBW Energie Baden- Württemberg AG 15.1 % of the shares. The remaining 18.5 % of the shares were in free float.

AUTHORISED CAPITAL I: By resolution dated 4 March 2005, the Annual General Meeting authorised the Executive Board, subject to the consent of the Supervisory Board, to increase the share capital by up to Euro 39 000 thousand (Authorised Capital I). The Executive Board acted on this authorisation with the consent of the Supervisory Board for the first time on 15 November 2005. As a result of the issue of 5 million new shares, the share capital was increased by Euro 12 800 thousand (9.86 %) from
Euro 129 802 thousand to Euro 142 602 thousand.

On 11 October 2007, the Executive Board of MVV Energie AG resolved with the consent of the Supervisory Board to act on the authorisation granted to it by the Articles of Incorporation and to increase the share capital by Euro 25.96 million. The capital increase was successfully completed at the beginning of November 2007. The share capital of MVV Energie AG was increased from available Authorised Capital I by Euro 25.96 million to Euro 168.72 million by issuing 10.1 million new shares in return for cash contributions and with shareholders’ subscription rights.

The authorisation dated 4 March 2005 was amended at the Supervisory Board meeting on 11 October 2007, taking due account of the previous utilisation of the authorisation, to empower the Executive Board until 3 March 2010 to increase the share capital by an additional amount of up to Euro 243 thousand (Authorised Capital I).

AUTHORISED CAPITAL II: By resolution adopted on 10March 2006, the Annual General Meeting of MVV Energie AG authorised the Executive Board to increase the company’s share capital on one or several occasions by a total of up to Euro 3 400 thousand within the framework of the employee share programme. The Executive Board acted on this authorisation with the consent of the Supervisory Board on 20 September 2006. As a result of the issue of 63 290 new shares, the share capital increased by 0.11 % from Euro 142 602 thousand to Euro 142 764 thousand. Shareholders’ subscription rights were excluded. An amount of Euro 3 238 thousand of Authorised Capital II is therefore still available.

CAPITAL RESERVE: The capital reserve relates to MVV Energie AG. This reserve includes external inflows of funds requiring inclusion under § 272 of the German Commercial Code (HGB). The transaction costs of the capital increase executed on 11 October 2007, which are recognised as a reduction in equity (capital reserve), amounted
to Euro 2 464 thousand. The income tax relief of Euro 1 164 thousand in connection with the transaction costs was accounted for in the capital reserve.

RETAINED EARNINGS: In addition to the prorated retained earnings of MVV Energie AG and of the other consolidated companies since the date of initial consolidation, retained earnings also include accumulated changes recognised directly in equity as a result of the measurement of financial instruments at fair value, which mainly relate to hedging relationships recognised under IAS 39 (2008), as well as currency translation differences arising upon the translation of foreign financial statements and accumulated annual results. An amount of Euro 8 664 thousand was withdrawn from the fair value reserve during the financial year (previous year: transfer into reserve of Euro 3 565 thousand)

PROPOSED APPROPRIATION OF EARNINGS: The Executive Board proposes appropriating the unappropriated net profit of MVV Energie AG for the 2008/09 financial year as follows: Distribution of a dividend of Euro 0.90 per individual share for the 2008/09 financial year (total: Euro 59 316 116.40). The Annual General Meeting to be held on 12 March 2010 will decide on payment of the dividend.