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euro adhoc: MVV Energie AG / Annual results of MVV Energie sharply influenced by extraordinary items (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

Mannheim, 23 November 2004. As expected and already announced, MVV Energie has reported negative net income for the past 2003/04 financial year (30.9.) as a result of the extraordinary expenses incurred in particular by the focusing of the portfolio of shareholdings on the profitable core business.

With adjusted sales of Euro 1.65 billion, compared with Euro 1.44 billion in the previous year, in which we now report only the gross margin generated on those sales relating to energy trading transactions undertaken solely for trading purposes, our income statement prior to adjustment for extraordinary items shows operating earnings (EBIT) of Euro 41 million (previous year: Euro 244 million). The deduction of interest, taxes and minority interests results in an annual net deficit of Euro 44 million (previous year: annual net surplus of Euro 152 million). Following adjustments totalling Euro 56 million for the extraordinary expenses incurred on restructuring the portfolio and the write-downs on the net book values of our shareholdings undertaken within the framework of the impairment tests, our EBIT amounts to Euro 97 million (adjusted figure for previous year: Euro 121 million) and the annual net surplus after minority interests amounts to Euro 12 million (adjusted figure for previous year: Euro 25 million).

Apart from the expenses incurred on restructuring the portfolio of shareholdings and the impairment tests, the EBIT figure for the final quarter of the past 2003/04 financial year was only burdened by the following items and expenses: the initial consolidation of the newly acquired Stadtwerke Kiel in the traditionally weak summer months (Euro 2 million), write-downs on receivables resulting from a new risk classification process (Euro 5 million), amortisation of invoicing software (Euro 4 million) and the initial inclusion of MVV Consultants and Water Engineers GmbH following the merging of our consulting activities (Euro 2 million). By contrast, the cash flow for 2003/04 pursuant to DVFA/SG rose by 5% compared with the previous year to reach Euro 158 million.

Following the restructuring measures and extraordinary expenses in the past 2003/04 financial year, the Executive Board of MVV Energie expects it to be possible to achieve a significant increase in sales and earnings in the 2004/05 financial year. Sales are expected to rise to Euro 2.0 billion and the EBIT to Euro 150 million. In view of the high level of earnings retained from the 2002/03 financial year, the Executive Board will propose the payment of an unchanged dividend of Euro 0.75 per share for the past 2003/04 financial year. More detailed figures for the balance sheet, income statement, cash flow statement and future earnings expectations will be published on 26 January 2005.

Contact:

MVV Energie AG
Investor Relations
Tel. +49(0)621-290-3708
E-Mail: ir@mvv.de
Internet: http://www.mvv-investor.de

Further inquiry note:
Frank Nagel
Tel.: +49(0)621-290-2692
e-mail. f.nagel@mvv.de

emitter: MVV Energie AG Luisenring 49 D-68159 Mannheim phone: +49(0)6212900 FAX: +49(0)621290 2324 mail: energie@mvv.de WWW: http://www.mvv.de ISIN: DE0007255903

end of announcement euro adhoc

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