Net Value Added
Our business benefits our various stakeholders in a number of ways. We create jobs, buy products and services, as well as paying taxes and charges for example. Value added is a way to quantify these benefits. Net value added from continuing operations is equal to the sum of gross profit on sales and other earnings less the cost of goods sold and services provided, depreciation, and other expenses.
E.ON Group added EUR15.8 billion of value in 2007, nearly half of which went to our stakeholders. We recorded a net value added of approximately EUR6.9 billion in 2007, equal to ten percent of our sales. At the E.ON Annual Shareholders Meeting on April 30, 2008, the Board of Management and Supervisory Board will propose that E.ON pay a cash dividend of EUR4.10 per share qualifying for a divided. This would result in a total dividend payout of EUR2.6 billion based on the number of shares outstanding as of December 31, 2007; further share repurchases under our share buyback program could alter the dividend payout. In addition to the dividend, our shareholders benefited from a 42 percent increase in the price of E.ON stock in 2007.