Business Performance

During the period covered by our financial year the German economy underwent its severest recession since the end of World War Two, one which has also left its mark on the earnings performance of the MVV Energie Group. Notwithstanding the slight revival in the economy apparent in the second half of 2009, macroeconomic developments up to the time at which our 2008/09 consolidated financial statements were prepared still harboured great uncertainties.

In view of this difficult underlying framework, our group of companies maintained its ground well in the 2008/09 financial year. We see the fact that we reached the operating earnings target announced at the beginning of the year in spite of the economic crisis as representing a success. We also assess the development in our net asset and financial positions positively. The increased volume of investment could be financed in full from the cash flow from operating activities once again in the year under report. With an equity ratio of 28.1 %, we have a good foundation for maintaining our ability to obtain a balanced mix of capital market financing for the investments in our further growth.

We launched our “Once Together” project at the beginning of October 2009. In this, we will be working together with our major shareholdings to gradually implement the priorities identified within the MVV 2020 strategy project. We are confident that our investments, with their long-term focus, will enable us to achieve our target of generating sustainable profitable growth.