ENRON EUROPE Q 1 2001 Financial Review Enron

ENRON EUROPE Q 1 2001 Financial Review

Enron Europe Q 1 Plan Comparison Headcount includes 50% of EES 176 2

Enron Europe Q 1 2001 v 2000 ‘Like for like comparison’ 3

Expenses Actual Expense $56 m $10 m $8 m $7 m $6 m $3 m $25 m ($6 m) Salaries & Wages Actual $56 m vs Plan $58 m (favourable variance $1. 8 m) • Headcount is 48 (2%) below plan at 2, 269 (see page 7) Depreciation & Amortization Actual $16 m vs Plan $16 m (on target) • 63% relates to depreciation of assets with the remaining 37% relating to amortization of goodwill mainly from the metals purchase. Consulting Actual $10 m vs Plan $10 m (on target) • Operational spend (Metals, Credit, Occupancy) accounts for 50% of cost, 34% relates to projects/deals and 16% relates to recruitment. Audit & Legal Actual $8 m vs Plan $7 m Plan (unfavourable variance $1 m) • Increase over plan due to audit fee accrual increase which we are discussing with Andersen's. Occupancy Actual $7 m vs Plan $9 m (favourable variance $1 m) • Plan included new building cost for Q 1. These costs will now not be incurred until Q 4. Travel & Entertainment Actual $6 m vs Plan $8 m (favourable variance $2 m) • Greater emphasise on cost management and reduced deal flow resulted in significantly less travel by most groups. Office Expense Actual $6 m vs Plan $7 m (favourable variance $1 m) • Plan included cost for new building. Mobile Phones & Landlines Actual $3 m vs Plan $3 m (on target) • Market data feed cost of $1 m and landline, fax and mobile phone costs of $2 m. General & Admin Actual $2 m vs Plan $3 m (favourable variance $1 m) • Training & Conference cost make up 44% of total. Remaining relates to subs & memberships. Other Actual $25 m vs Budget $29 m (favourable variance $4 m) • Bonus $8. 8 m, Corp Allocations $6 m, Prepay funding costs $4 m and other $6. 2 m. 3 Rd Party Interest Income Actual $6 m vs Plan $0. 6 m income (favourable variance $5. 4 m) • Metals 3 rd party interest income generated $4 m of the total. This relates to deposits held at counterparties. Total $133 m Plan Expense $58 m $16 m $10 m $7 m $9 m $8 m $7 m $3 m $29 m ($1 m) $149 m Total 4

Enron Europe Headcount By Location Total Plan 2001 Headcount Quarter 1 2001 Quarter 4 2000 1, 453 1, 408 UK (Non-London) 115 111 EES(50%) 176 188 Scandinavia 54 55 Continental Europe 265 241 95 93 111 108 2, 269 2, 204 2, 317 London Headcount Movement Quarter 1 2001 Quarter 4 2000 Commercial Support 739 747 698 718 Support: commercial 1 to 1 83 79 Regional Head Office Functions* 116 115 IT 408 406 Total EES 50% 2, 093 176 2, 016 188 Total 2269 2204 Support (Non Wholesale businesses) Americas Asia Total Enron Metals Headcount at Q 1 2001 Plan Headcount Q 1 Represents employees paid by Enron Europe Ltd. Excludes EBS, Global Markets and power station staff. * These represent functions that are centralized for other trading groups in Houston. Eg RAC, Admin, PR etc 5 = 622 = 625