E.ON SE

Regulatory Filings • May 30, 2007

News Details

Ad-hoc | 30 May 2007 18:38

E.ON AG: Package of Strategic Initiatives

E.ON AG / Strategic Company Decision/Share Buyback

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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• €7 billion share buyback program decided

• €60 billion of investment program decided

• Targets set for 2010: 10 percent annual average adjusted EBIT increase
  and 10 to 20 percent annual average dividend growth

• Capital structure to be managed using debt factor

E.ON’s Board of Management and Supervisory Board have approved a share
buyback program, in accordance with a resolution passed at E.ON’s Annual
Shareholders Meeting on May 3, 2007, giving management such authority of up
to 10 percent of the capital stock. On this basis, €7 billion E.ON shares
will be bought back by the end of 2008.

In addition, the Board of Management and Supervisory Board have decided
that E.ON will initiate investments totaling €60 billion by 2010 in order
to expand the company’s business and achieve targeted growth in its core
European market and adjacent growth regions. E.ON’s extensive new build and
investment program will increase the company’s generating capacity by about
50 percent by 2010.

The Board of Management has set a target of increasing E.ON’s adjusted
EBIT, which was €8.4 billion in 2006, to €12.4 billion by 2010, an annual
average increase of about 10 percent. E.ON expects most of the earnings
improvements to come from planned growth investments and operational
improvement initiatives. E.ON aims to increase dividends by 10 to 20
percent on average through 2010.

The Board of Management has decided to introduce a new steering measure -
the debt factor - to manage E.ON’s capital structure. The debt factor is
the ratio between economic net debt and adjusted EBITDA. Economic net debt
includes financial liabilities as well as pension and asset retirement
obligations. It amounted to €18.2 billion at the end of 2006. E.ON’s
adjusted EBITDA for 2006 was €11.8 billion, resulting in a debt factor of
1.5. To achieve a more efficient capital structure, E.ON has set itself a
debt factor target of 3.

DGAP 30.05.2007

Language: English
Issuer: E.ON AG
E.ON-Platz 1
40479 Düsseldorf Deutschland
Phone: +49 (0)211 4579-0
Fax: +49 (0)211 45 79-5 01
E-mail: investorrelations@eon.com
www: www.eon.com
ISIN: DE0007614406
WKN: 761440
Indices: DAX, EURO STOXX 50
Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Stuttgart, München, Hamburg;
Terminbörse EUREX; Foreign Exchange(s) Mailand, NYSE

End of News DGAP News-Service

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