2 Combined Group Management Report Adjusted EBIT almost at high prior-year level Cash provided by operating activities up 34 percent Management to propose dividend of 1.50 2010 adjusted EBIT expected to be up 0 to 3 percent E.ON Group: Market Units, Lead Companies, Reporting Units Central Europe E.ON Energie AG Munich, Germany, 100% Central Europe West · Regulated Business · Non-regulated Business Central Europe East Other/Consolidation Pan-European Gas E.ON Ruhrgas AG Essen, Germany, 100% Regulated Business Non-regulated Business Other/Consolidation U.K. E.ON UK plc Coventry, United Kingdom, 100% Regulated Business Non-regulated Business Other/Consolidation Nordic E.ON Sverige AB Malmö, Sweden, 99.99% Regulated Business Non-regulated Business Other/Consolidation Corporate Center E.ON AG, Düsseldorf The Corporate Center segment consists of E.ON AG itself and of ownership interests managed directly by E.ON AG. We also allocate consolidation effects at the Group level to this segment. Central Europe E.ON Energie is responsible for our electricity business and our gas distribution and sales business in many countries across Central Europe. The Central Europe West Regulated and Non-regulated businesses (whose main presence is in Germany, the Netherlands, Belgium, and France) consist of: · the operation of conventional and nuclear power stations as well as renewable-source and waste- incineration power generation · electric transmission via high-voltage and ultrahigh- voltage wires networks · regional distribution of electricity, gas, and heat · electricity, gas, and heat sales. The ultrahigh-voltage transmission network was sold to Netherlands-based TenneT in February 2010. The Central Europe East business consists of our shareholdings in regional electric and gas distributors in Bulgaria, Romania, Slovakia, the Czech Republic, and Hungary. Corporate Profile and Operating Environment Corporate Structure and Operations E.ON is one of the world's largest investor-owned energy companies. Our more than 88,000 employees generated just under 82 billion in sales in 2009. E.ON operates along the value chain in power and gas.These operations are segmented geographically or functionally into market units. The lead company of each market unit is responsible for integrating and coordinating operations across its target market. Busi- ness units manage day-to-day operations. We pursue a value- oriented management approach aimed at enhancing our competitiveness and delivering profitable growth. All subse- quent commentary for the E.ON Group in the Combined Group Management Report also applies to E.ON AG. For reasons of materiality, we combine our Climate & Renew- ables, Russia, Italy, and Spain market units in a single reporting segment called New Markets. Corporate Center The E.ON AG Board of Management steers the E.ON Group. Its main tasks are to manage E.ON as an integrated energy company, chart E.ON's strategic course, manage and secure necessary financing, manage business issues that transcend individual markets, manage risk, and continually optimize the Group's business portfolio.