Letter from the CEO

We can look back on an unusual 2008/09 financial year. It was marked by the most profound economic and financial crisis seen in decades, one which also did not simply pass the MVV Energie Group by. I am all the more pleased, therefore, that our group of companies has come through this year of crisis in good shape. We successfully maintained our position in the market. We boosted our external sales by 20 % compared with the previous year, enabling them to reach almost Euro 3.2 billion for the first time. We thus clearly exceeded our sales target. We complied with our operating earnings target. At Euro 239 million, our adjusted earnings before interest and taxes for the 2008/09 financial year were 4 %, and thus only marginally, lower than the comparable EBIT figure in the previous year. We therefore met our two most important quantitative targets. And for that I would like to thank all managers and employees at our group of companies for the superb work they have performed.

At the same time, we have also made considerable progress in qualitative terms. Within the framework of our MVV 2020 strategy project we have compiled a longterm strategy for our Group and completed the groundwork for forward-looking investments. This will provide a basis for further profitable growth creating value at our company. From this it should be clear that MVV Energie has its sights firmly set on the future. Our strategy, with its focus on market needs, means that we are laying foundations today already to energise our customers in future as well.

The achievement of our sales and earnings targets underlines both the stability of our business model and the growth opportunities it harbours – even and perhaps especially in periods of difficult underlying conditions. What’s more, it also shows that our well-balanced business portfolio, innovative products and permanent process of efficiency enhancement have enabled us to seize market opportunities and sustainably improve our competitive position. That is particularly true of our electricity and gas sales business with industrial customers across the whole of Germany.

We have also set standards in our energy-related services business, where our longstanding experience in using renewable energies in contracting projects (especially biomass) and in supplying utilities to real estate customers has enabled us to achieve notable success in the market.

In our environmental energy business as well, we managed to continue to operate our plants at full capacity within a challenging waste market. This means that we have also made an active and sustainable contribution towards protecting the climate.

We would like to uphold our shareholder-friendly dividend policy in this financial year too. With this in mind, the Executive and Supervisory Boards will be proposing an unchanged dividend of Euro 0.90 per share for the 2008/09 financial year for approval by the Annual General Meeting of MVV Energie AG on 12 March 2010. On behalf of the company, I would like to thank our shareholders for their support and the trust they have placed in us. I would be very pleased if they were to remain loyal to MVV Energie in the 2009/10 financial year as well.

So what does the future hold for us? Our market environment is constantly changing. Increasing cost and competitive pressure, the second stage of incentive regulation, falling demand for energy and political climate protection targets, with their implications for CO ₂ certificate trading, will lead to substantial structural changes in our industry. Energy efficiency, renewable energies and efficient cogeneration are the answers to the challenges of the future! And at MVV Energie we will be actively seizing these opportunities.

Our aim is to be one of Germany’s leading energy companies, as we are now, in 2020 as well. To ensure this, we laid decisive foundations in the year under report within our MVV 2020 strategy project. We are convinced that we are taking the right course by renewing our strategic alignment and by investing an amount of Euro 3 billion on a long-term basis. This way, we will retain and create safe and sustainable jobs and training posts and generate attractive value growth for our shareholders in future as well.

Mannheim, December 2009

With kind regards.

Yours faithfully,