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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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 mor on our German web site (new window)

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

The Group 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. Please refer to the presentation slides made available in connection with the release of Vattenfall’s quarterly reports. The achieved price levels are not made public. Vattenfall’s handling of electricity price risks are described in the Risk management section of the Annual Report.
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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Please comment on Vattenfalls growth strategy.

To continue the profitable growth is one of Vattenfall’s five strategic ambitions. Profitable growth is vital for Vattenfall’s future competitiveness and ability to create sustained economic value. Size carries a number of strategic advantages, such as market position, financial strength and ability to spread risks. Added to these are operational advantages, such as more cost-efficient purchasing and leaner administration, which also enhance profitability.

Growth in new capacity for electricity generation is taking place both organically and through acquisitions. Vattenfall plans to build new power plants as well as improve and increase the capacity of existing generation facilities.

Company acquisitions play a key role in achieving the Group’s growth targets. Vattenfall is currently concentrating its efforts on acquiring operations in its existing markets, the UK and the Benelux countries. Other priority growth markets are France and Central Europe. In the UK, Vattenfall carried out three acquisitions in 2008 - all in wind power. In early 2009, Vattenfall made an offer for Nuon1, the second-largest energy company in the Netherlands, with approximately 3 million customers and slightly more than 6,000 employees.

Decisions on acquisitions must be in line with Vattenfall’s overall strategy. Acquisitions must be judged to support Vattenfall’s environmental objectives and contribute to reliable energy supply and stable prices for society at large. In addition, any acquisitions must meet set requirements for risk profile and profitability, while making a priority growth markets for Vattenfall.

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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.
In addition, Vattenfall’s management has translated the owner’s requirement on return on equity (RoE) into a requirement on net assets (RoNA).
Financial targets

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Please comment on Vattenfall’s credit rating.

Vattenfall is committed 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:
Credit ratings

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