Investors FAQ

Find answers to frequently asked questions:

Is it possible to buy shares in Vattenfall?

No. The parent company of the Vattenfall Group, Vattenfall AB is a non-listed company, 100% owned by the Swedish state. The Swedish Government has stated that it has no intention to privatise the company.

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Is it possible to buy bonds issued by Vattenfall?

Yes. Vattenfall has issued several bonds which are traded on the secondary market. For more information about Vattenfall’s outstanding bonds, debt issuance programmes, prospectuses, please follow the link to our Funding section. For more information how to purchase Vattenfall bonds, please consult your bank for more details. There may be minimum amount requirements for such purchases.
Read more about our Funding section

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What is Vattenfall’s ownership in its German subsidiary Vattenfall Europe AG?

Vattenfall AB controls 100% of the shares in Vattenfall Europe AG. In August 2005 Vattenfall AB initiated a so-called squeeze-out of the remaining 3.19% “free float shares”. The squeeze-out was completed on 21 april 2008 through the registration with the Commercial Register in Berlin and Vattenfall Europe AG was delisted from the German stock exchanges. More information about the squeeze-out is provided on Vattenfall’s German web site (in German).
Read more on our German web site (new window)

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What is Vattenfall’s ownership in its Dutch subsidiary N.V. Nuon Energy?

Vattenfall acquired 49% of the shares in N.V. Nuon Energy on 1 July 2009 and at the same time gained operational control. Vattenfall will acquire the remaining 51% of the shares at fixed price as follows: 15% in 2011, 15% in 2013 and 21% in 2015.

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How does Vattenfall have operational control in N.V. Nuon Energy?

Vattenfall has four out of eight members in the Nuon Supervisory Board. Vattenfall appoints the Chairman, who has a casting vote. Vattenfall thus has operational control of Nuon despite the initial minority holding of 49%. Four members are nominated by remaining Nuon shareholders, including two nominated by the Works Council.

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What was the purchase price for N.V. Nuon Energy?

The equity value for 100% amounted to EUR 9,863.5 million. On 1 July 2009 Vattenfall acquired 49% of the shares for EUR 4,833 million. The remaining 51% of the shares, totalling EUR 5,030 million, will be paid by Vattenfall in three tranches in the coming five years. in addition the shareholders of Nuon will receive fixed dividend payments during the co-shareholding period.

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What was the strategic rationale behind the transaction?

Nuon provides significant risk diversification for the Vattenfall group – geographically as well as fuel mix. Adding gas to Vattenfall’s generation portfolio provides a partial hedge to coal-fired operations in Germany. Vattenfall will also strengthen its role in wind power and improve its position to shape regulatory discussions on energy efficiency, renewables and CCS.

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How is Nuon integrated into Vattenfall’s organisation?

Nuon’s wind power operations have been integrated in business unit Wind of Business Group Pan Europe, and Nuon’s energy trading operations are part of Supply & Trading. The remaining business units; Exploration & Production; Power, Heat and Services; and Sales are part of the newly formed Business Group Benelux.

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Why was Nuon’s German sales division, Nuon Deutschland GmbH, divested?

Vattenfall completed the sale of N.V. Nuon Energy’s German subsidiary Nuon Deutschland GmbH in March 2010 (with retroactive effect from 1 January 2010). The energy sales company was acquired by ENERVIE – Südwestfalen Energie und Wasser AG (formerly SEWAG). The divestment was a condition to the approval by the European Commission of Vattenfall’s acquisition of N.V. Nuon Energy.

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Please comment on the divestment of Vattenfall’s transmission grid in Germany, 50Hertz GmbH

In March, Vattenfall signed an agreement to sell its subsidiary 50Hertz Transmission GmbH, which owns and operates Vattenfall’s transmission grid in Germany, to the Belgian transmission operator Elia and the Australian company Industry Funds Management (IFM). The agreed enterprise value amounts to EUR 810 million (approximately SEK 7.9 billion). The transaction was completed in May 2010. 

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Please comment on Vattenfall’s strategy regarding hedging of electricity wholesale prices.

Vattenfall hedges its exposure in accordance with established mandates and generally for three years ahead in time. Vattenfall discloses percentages of generation hedged on a quarterly basis. Since Q1 2010 hedge prices are disclosed as well. Please refer to the presentation slides made available in connection with the release of Vattenfall’s quarterly reports for more information about Vattenfall’s hedging.
More about risk management

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Which accounting principles are used in Vattenfall’s accounts?

Since 2005 Vattenfall’s consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS).

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What are Vattenfall´s financial targets?

Vattenfall’s owner (the Swedish state) has formulated four Group-wide financial targets that are long-term and evaluated over a business cycle. The four targets comprise profitability (defined as return on equity), interest coverage (defined as cash flow interest cover after maintenance investments), credit rating and dividend pay-out. Please follow the link for more information on the targets.
More about financial targets

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Please comment on Vattenfall’s credit rating.

It is Vattenfall’s target to maintaining a credit rating in the single A category from both Moody´s and Standard & Poor’s. Our current rating for long-term borrowing is A2 (Moody’s) and A (S&P). Read more about our ratings.
More about credit ratings

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