Enron Overview Jeff Skilling April 3 2001 Enron

Enron Overview Jeff Skilling April 3, 2001

Enron Annual Revenues 100. 8 B 40. 1 B 31. 3 B 20. 3 B + 54% + 28% + 151% 2 UB-SMETHODIST-0301

Earnings Performance (Recurring Per Diluted Share) $1. 47 $1. 18 $1. 00 $0. 87 + 15% + 18% + 25% 3 UB-SMETHODIST-0301

Management Efficiency Income per Employee Revenue per Employee 5. 6 Mil 55, 000 43, 836 32, 000 1. 1 Mil Enron Industry S&P Utilities Enron Industry 894, 094 S&P Utilities Source: msn-Money. Central © 2001 4 UB-SMETHODIST-0301

Enron Market Value* 62. 5 B 31. 8 B 18. 9 B 12. 8 B *Uses basic shares outstanding at 12/31 5 UB-SMETHODIST-0301

Enron Price/Earnings Ratio 56. 6 37. 6 28. 5 23. 9 6 UB-SMETHODIST-0301

Total Return to Shareholders Jan 1, 1990 to February 28, 2001 1600 Enron Corp. 1400 1200 1000 1, 151% S&P 500 354% Pipeline Avg. 571% Utility Avg. 246% E&P Avg. 183% 800 600 400 200 0 -200 Dec 91 Dec 92 Dec 93 Dec 94 Dec 95 Dec 96 Dec 97 Dec 98 Dec 99 Dec 00 Jan 01 Feb 01 Note: Calculated to February 28, 2001 7 UB-SMETHODIST-0301

Enron Corp Enron Transportation Services Enron Wholesale Services Enron Energy Services Enron Broadband Services 8 UB-SMETHODIST-0301

Enron Opportunity • • Traditional Model New Model • • Asset intensive Vertically integrated Slow moving and rigid Hierarchical Brain power intensive Networked “Real options” oriented Fast moving & entrepreneurial 9 UB-SMETHODIST-0301

Changes in the Marketplace • Interaction costs declining due to streamlining, standardization and automation – Sales – Legal – Procurement – Research – Credit – Documentation – Inventory – Logistics – Settlement • Cost/benefit of vertical integration and consolidation significantly reduced • Efficient sourcing and packaging produces lowest cost product 10 UB-SMETHODIST-0301

Enron’s Network Advantages • Access to Physical Product • Delivery Logistics Expertise • Leading Market-Making Capabilities • Risk Management Expertise • Ability to Structure Complex Customized Solutions • Well-Developed E-commerce Significant Competitive Advantages for Entering New Markets 11 UB-SMETHODIST-0301

Wholesale Merchant Opportunities Enron’s Advantage High Value Applications • Robust, Flexible Network • Commodity Risk Management • Scope and Scale • Benefits of Regional Arbitrage • Liquidity • Cross Commodity Arbitrage • Market-Making • Long-Term Origination • Risk Management • Wholesale Outsourcing • Technology • Asset Restructurings • Finance • Structured Finance Enron’s Capabilities Enable Unique Value Creation 12 UB-SMETHODIST-0301

Wholesale Services Financial Settlements Physical Volumes (BBtue/d) 196, 148 Power and Other Gas 51, 715 99, 337 32, 429 75, 266 27, 308 49, 082 17, 970 1997 1998 1999 2000 13 UB-SMETHODIST-0301

Expansion of Existing Business Coal Crude and Products (Transactions) Weather (Transactions) 1, 629 3, 111 7, 435 8, 305 9, 158 5, 099 715 46 1997 1998 1999 2000 • Over 7, 500 TBtue Avg. Daily Deliveries • 240 Customers in 46 Countries 1997 250 1998 305 321 1998 1999 16 1999 2000 • Over 100, 000 Tonnes Avg. Daily Deliveries • 190 Customers in 17 Countries 1997 2000 • Over $1. 5 Million (Notional) Average Daily Contracts • 30 Customers in 8 Countries 14 UB-SMETHODIST-0301

Enron–Accelerating Market Development Metals Bandwidth Commodity Product Australian Power & Gas Pulp & Paper Financial Coal Weather Scandinavian Power & Gas Plastics Emissions Financials (interest rate, equity) UK Power & Gas Electricity Currencies Natural Gas 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 * Lighter shading indicates a developing market Darker shading indicates a mature market 15 UB-SMETHODIST-0301

Enron Energy Services In-house Coordination Utilities Enron Outsourcing Approach Customer Receives Commodity Management • Improved Core Business Focus Software Vendor Controls Manufacturers Architects Engineers Equipment Manufacturers Mechanical Contractors Electrical Contractors HVAC Svc Companies Consultants Specialty Contractors Lenders Energy Information Management • Conditioned Air • Light Energy Asset • Managed Facilities Management Capital Management • Redeployment of Capital • Reduced Operating Costs • Access to World-Class Capabilities Internal Treasury 16 UB-SMETHODIST-0301

Enron Energy Services Executed Contracts $16. 0 B $8. 5 B $3. 8 B $1. 2 B 1997 1998 1999 2000 17 UB-SMETHODIST-0301

Enron Energy Services Executed Contracts 1997 Today Structure 18 UB-SMETHODIST-0301

Enron. Online – Changing the Way Energy Is Traded Free, Reliable Transaction System with Enron as Principal 1 1 99 /99 /00 /00 /00 /00 /00 /00 /00 /00 1/0 8/0 / 2 9 0 1 1 2 3 3 4 5 7 8 9 9 0 1 2 3 3 4 5 6 7 8 8 9 0 0 1 2 3 4 4 5 6 7 /2 /1 /2 /0 /2 /0 /1 /3 /1 /2 /0 1/3 2/ 11 12 12 01 01 01 02 02 02 03 03 03 04 04 05 05 05 06 06 06 07 07 07 08 08 08 09 09 10 10 10 11 11 11 12 0 0 Transactions per day 19 UB-SMETHODIST-0301

Enron. Online Efficiency Gains Transactions Per Market Maker Marginal Cost Per Transaction (Indexed) 100 3, 084 25 672 1999 2000 20 UB-SMETHODIST-0301

Enron. Online V 2. 0 ® Enron Net Works Clickpaper. com Enron. Online Deal Bench Commodity. Logic Enron Credit

Commitment to Technology Expenditures (Millions) People 1, 882 $522 1, 380 1, 154 $358 $291 1999 2000 2001 E New E-commerce Initiatives 22 UB-SMETHODIST-0301