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market. The offering for the Spanish market, in particular, was welcomed by the trading participants. Furthermore, EEX also offers power derivatives contracts for the Scan­ dinavian, Swiss and Romanian market. In total, a volume of 1.9 TWh was registered on these five markets, with the Spanish market accounting for a predominant share (1.6 TWh) thereof. In 2013, a volume of 0.01 TWh was registered for clearing in this category.

The existing market areas for power are to be developed further in 2015. For ex­ ample, specific order books are also to be introduced for the markets in Spain, Scan­ dinavia and Switzerland – in line with the very successful introduction in Italy. Ad­ ditionally, day and weekend futures will be introduced as products for short­term power trading for the high­growth markets in Italy, France and Spain, based on the Ger­ man model. The German, French and Italian markets are to be connected initially as a result of the implementation of so­called location spreads – i.e. products permitting the trading of price differences between the individual market areas. This is intended to bring EEX yet another step closer to its aim of providing a European reference price for power and attaining the status of the cen­ tral European energy exchange which is associated with it. Moreover, it promotes liquidity in the respective less­developed market areas.

POWER SPOT MARKET

The power spot markets for Germany, France, Austria and Switzerland (which are concen­ trated within EPEX SPOT) continued their positive development and grew again in

2014. At 382 TWh, the volume traded on EPEX SPOT increased by 36 TWh as against the previous year (346 TWh). Overall, a clearing volume of 387 TWh (2013: 345 TWh) had an impact on revenue at ECC ¹. In Decem­ ber, a new monthly record was achieved with a trading volume of, in total, 37.2 TWh (impact on revenue at ECC: 37.5 TWh). As a result, the revenue contribution made by clearing of the spot market transactions of EPEX SPOT within the Group accounted for, in total, 15 percent (2013: 14 percent). Moreover, EPEX has benefited from both the transmission system operator’s obligation to market quotas of power from renewable energies on a power exchange. This was established in the framework of the German Renewable Energies Act (EEG), which took effect in 2010, and is specified in more detail in the Ordinance on a Nationwide Equalisation Scheme (AusglMechV) and direct marketing which was implemented in Jan­ uary 2012. Direct marketing creates the possibility to sell power generated from renewable sources of energy directly to a large buyer or on a power exchange. Even though, in the context of direct market­ ing, there is no obligation to market power through an exchange or, more specifically, through EPEX SPOT, EPEX was still able to successfully establish a position for itself as a strong market platform in this segment. This is due to the high liquidity which is as­ sociated with this, and the comprehensive product offering of the exchange – both in day­ahead and intraday trading. As a result of this position, EPEX SPOT assumes that it will also benefit from the increased volumes in direct marketing in the future.

1 The volume traded on EPEX SPOT differs from the volume recorded as revenue on ECC on account of the different consideration of bor- der-crossing power volumes. EPEX SPOT considers the net position which reflects the balance of import and export for a market area as the trading volume. At ECC, it is not this balance which is considered as revenue but the volume of the market coupling contracts which consider the export volume from one market area into another. These two volumes are usually not identical.

Consolidated Management Report Development of business

Foreword Consolidated Notes

Consolidated Financial Statement Growing Together The Company

+24

%

Trading volumes on the power derivatives market increased significantly

The trading volumes on the day­ahead mar­ kets of EPEX SPOT developed positively in 2014. Compared with the previous year, the day­ahead market for France (+25 percent) and the day­ahead market for the Ger­ man­Austrian market area (+8 percent), in particular, generated significant gains. In the calendar year 2014, the intraday seg­ ment gained further liquidity. This trend was

observed, in particular, on the German intra­ day market with an increase of 37 percent as against the previous year. Even though it is smaller in size compared with the day­ ahead markets (31 TWh vs. 356 TWh), the intraday markets are gaining in importance. This is due, in particular, to the growing im­ portance of fluctuating renewable energies. For example, in December a new maximum Power volumes

in TWh 2014 2013 Change

Derivatives market 1,570 1,265 1 + 24% Germany 1,369 1,244 + 10% thereof exchange trading 812 669 + 21% thereof trade registration 557 575 – 3% Italy 116 1.1 + 10,445% thereof exchange trading 19 n / a n / a thereof trade registration 96 1.1 + 8,627% France 83 20 + 315% thereof exchange trading 36 12 + 200% thereof trade registration 47 8 + 488% Spain 1.6 n / a n / a Netherlands 0.9 0.1 + 800% Romania 0.06 0.01 + 500% Belgium 0.04 0 n / a Switzerland 0.3 0 n / a Greece 0.02 n / a n / a Northern Europe 0 0 n / a Spot market 387 345 + 12% Auction for Germany / Austria 266 247 + 8% Auction for France 70 56 + 25% Auction for Switzerland 20 19 + 5% Intraday Germany 26 19 + 37% Intraday France 3.3 2.9 + 14% Intraday Switzerland 1.1 0.5 + 120% Intraday Austria 0.5 0.4 + 25%

Rounding differences of ± one unit (TWh, EUR, %, etc.) may occur in the tables for arithmetical reasons.

1 Compared with the annual report for the previous year, the trading volumes for guarantees of origin were removed from the power segment. The corresponding values for the previous year have been adjusted.

PEGAS offers trading in location spreads,