Vattenfall - Investors FAQ

Investors FAQ

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.

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

Vattenfall AB owns, directly and indirectly 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. More information about the squeeze-out is provided on Vattenfall’s German web site (in German).

Vattenfall’s German web site (new window)

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 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, though. Vattenfall’s handling of electricity price risks are described on pages 70-73 in the 2007 Annual Report.

Risk management

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).

Please comment on Vattenfalls growth strategy.

To continue the profitable growth is one of Vattenfall’s five strategic ambitions. Profitable growth can be achieved through both M&A (mergers & acquisitions) and through the investments in new generation capacity. For the five-year period 2008-2012, Vattenfall plans to invest SEK 173 billion in its operations, of which SEK 55 billion in the Nordic region and SEK 118 billion in Central Europe. SEK 133 is earmarked for investments within electricity and heat production, while SEK 40 billion is planned for Vattenfall’s network operations. These amounts do not include any M&A transactions. Vattenfall´s growth strategy is driven by generation of heat and electricity. Gas is an option. Our geographic focus is in our existing core countries (i.e. Sweden, Denmark, Finland, Germany and Poland) as well as in selected target countries adjacent to our existing core countries. Please see Vattenfall´s Annual Report 2007, page 14-15.

Vattenfall´s Annual Report 2007

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

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