DONG Energy Group Annual Report EN

MOVING ENERGY
FORWARD GROUP ANNUAL REPORT 2011

One of the leading energy groups in Northern Europe
at a glance
DONG Energy is one of the leading energy

groups in Northern Europe. We are head-
quartered in Denmark. Our business is based
on procuring, producing, distributing and Owners at 31.12.2011
trading in energy and related products in The Danish State 76.49%

SEAS-NVE Holding 10.88%
Northern Europe. At the end of 2011, Syd Energi Net 6.95%
DONG Energy employed 6,098 people. Others 5.68%
Revenue EBITDA Profit for

Results 2011
DKK DKK the year DKK
56.8 BN 13.8 BN 2.9 BN
Cash flows from net investments Rating

operations DKK DKK
12.6 BN 13.1 BN A-/Baa1
Offshore wind in operation Gas sales

Market shares
Denmark........................................ 45% Denmark....................................... 29%

21%
UK...................................................... Sweden........................................... 22%
Electricity generation Netherlands........................................ 1%
Denmark........................................ 54% Electricity distribution
Heat generation Denmark....................................... 28%

Denmark........................................ 35% Gas distribution
Electricty sales Denmark....................................... 29%

Denmark....................................... 20%
Netherlands........................................ 1%
More reliable and clean energy
why
DONG Energy works concertedly to produce more energy and to reduce
emissions of CO2. Production of oil and gas is being increased to meet
the growing demand for energy. Many new wind turbines are also being
brought on stream. And we plan to convert our Danish power stations to
more green generation through increased use of biomass. The financial
statements show that it is possible to meet both the challenges in the
energy area and achieve satisfactory financial results.
Doubling EBITDA, DKK billion Halving CO2 emissions, g CO2 per kWh
Where to
Realised Target Trend Realised Target
18 17.6
650
638
613 Mål
16 Likvider
EBITDA
600 590
14 13.8
Bindende lånefaciliteter
574 Realiseret
550
12
524
10 500 524
8.8 486
8 450
6
400
4
350
2 320
0 300
2009 2010 2011 2012 2013 2014 2015 2006 2008 2010 2012 2014 2016 2018 2020
dong energy’s strategic directions

How
Wind and biomass growth Robustness via the

integrated business model
Growth in the production Development of the flexible

and sourcing of oil and gas energy system of the future
Group annual report
CONTENTS
To make the annual report more user friendly, DONG the Group annual report is an extract of DONG Energy’s
Energy has, for the first time, chosen to publish a Group complete annual report. The complete annual report,
annual report that does not include accounting policies including accounting policies for the financial statements
for the financial statements and non-financial statements, and non-financial statements, licence overview, company
licence overview, company overview, the financial overview, the parent company financial statements and
statements of the parent company, DONG Energy A/S, or the statutory corporate governance statement, can be
the statement on corporate governance, including downloaded at www.dongenergy.com. Following adoption
internal control and risk management systems in at the AGM, the complete annual report will also be
connection with the financial reporting. Pursuant to available from the Danish Business Authority
section 149(2) of the Danish Financial Statements Act, (Erhvervsstyrelsen).
Management’s review ADDITIONAL information

1 Letter from the Chairman and the CEO 126 Company announcements published in 2011
2 Selected highlights in 2011 127 Glossary
4 Performance highlights, financial Inside front cover DONG Energy at a glance
6 Performance highlights, non-financial Inside back cover Definitions of performance highlights
6 CSR report
8 Market conditions
9 Business and strategy FURTHER INFORMATION
18 Business areas at a glance
Media Relations
Financial performance and outlook: Karsten Anker Petersen
28 Consolidated results +45 99 55 96 62
36 Review of business areas’ performance
40 Financial outlook for 2012 Investor Relations
42 Financial objectives Morten Hultberg Buchgreitz
43 DONG Energy and the capital market +45 99 55 97 50
44 Risk and risk management
www.dongenergy.com
Management information:
52 Corporate governance
52 Board of Directors
56 Executive Board Front and back cover photo
Establishment of the Horns Rev 2 offshore wind farm
Consolidated financial statements
60 Statement of comprehensive income
62 Balance sheet
64 Statement of changes in equity Language
66 Statement of cash flows The report has been prepared in Danish and
68 Notes to the consolidated financial statements in English. In the event of any discrepancies between
the Danish and the English reports, the Danish
management statement, version shall prevail.
Independent auditor’s report and
assurance statement
57 Statement by the Executive Board and the
Board of Directors
124 Independent auditor’s report, financial
statements Design: Bysted/DONG Energy
125 Assurance statement, non-financial statements Print: Scanprint
This report was printed by an ISO 14001 eco-certified
and EMAS-registered printing firm
More reliable and clean energy
Modern society is using more and more energy. At the The aim is to deliver reliable and clean energy that meets
same time, we want to slow down the impact on the envi- the requirements of modern society. The ability to achieve
ronment to which traditional energy production contrib- satisfactory financial results at the same time is reflected
utes. This is the dual challenge that we are facing. in DONG Energy’s financial statements. We are thus well
DONG Energy sees it as its task to work concertedly on on the way towards our business target to double operat-
both fronts. On a sound business basis, of course. ing income in 2015 compared with 2009.
We are producing more energy by increasing our pro- In the context of the global challenge, DONG Energy’s
duction of oil and gas, which will remain necessary sources initiatives may seem modest. But every effort counts.
of energy for many years to come. At the same time, DONG And our rapid transition is equipping us well for the future
Energy is a world leader in wind energy, and we are cur- while also demonstrating that it is possible to deliver more
rently bringing row after row of new offshore wind turbines energy and more green energy on a sound commercial
on stream. basis.
At the same time, we are planning to convert our Danish
power stations to more green generation. Consumption of
coal is being reduced markedly while consumption of vari- 9 March 2012
ous forms of biofuel will be increased. Pollution with CO2
and other harmful substances is being reduced, and we are Fritz H. Schur Anders Eldrup
thus producing the necessary energy more responsibly. Chairman of the Board of Directors CEO
DONG Energy Group annual report 2011 – Management’s review 1

SELECTED HIGHLIGHTS IN 2011
Q1 Q2
13 January
New hybrid capital bonds issued
DONG Energy has successfully issued new hybrid capital
with a coupon rate of 7.75% for EUR 700 million due in
3010 and repurchased EUR 500 million of the existing
hybrid capital due in 3005. The capital base was strength-
ened by DKK 1.3 billion.
24 February
Construction of the offshore wind farm
Borkum Riffgrund 1
Decision to build the offshore wind farm Borkum Riffgrund
1 in the German sector of the North Sea. The total invest-
ment will be approximately EUR 1.25 billion. The farm will
have a total capacity of 320 MW and will supply power 16 June
from 2014. Construction of West of Duddon Sands offshore
wind farm
28 March Decision to build the offshore wind farm West of Duddon
PensionDanmark and PKA to become co-owners of Sands in the Irish Sea in a 50/50 partnership between
Anholt offshore wind farm DONG Energy and ScottishPower Renewables with
A consortium consisting of PensionDanmark and PKA has expected commissioning in 2014. The total investment is
signed an agreement with DONG Energy on the acquisi- expected to be GBP 1.6 billion.
tion of 50% of Anholt offshore wind farm for approximately
DKK 6 billion. 20 June
Divestment of Oil Terminals
DONG Energy and the Canadian energy infrastructure
business Inter Pipeline Fund agreed that Inter Pipeline
Fund will take over DONG Energy Oil Terminals.
The price was DKK 2.6 billion and the transaction was
completed in January 2012.
Note: Only selected highlights in 2011 are listed. A complete list of

company announcements is available on page 126.
2 Management’s review – DONG Energy Group annual report 2011

Q3 Q4
17 August 18 October
Signing of EUR 1.3 billion credit facility Acquisition of UK Shell Gas Direct
DONG Energy has signed a EUR 1.3 billion 5-year revolving DONG Energy and Shell UK signed an agreement for
credit facility which includes two 1 year extension options. DONG Energy to acquire the gas sales company Shell
Gas Direct for GBP 30 million. The transaction has subse-
26 August quently been approved by the EU competition authorities.
DONG Energy co-founder of bioenergy consortium
in Måbjerg 27 October
Together with local players, DONG Energy established a Vestas and DONG Energy enter into agreement on
green energy consortium, Måbjerg Energy Concept. Over testing of new 7 MW offshore wind turbine
15 months, the consortium will determine whether a num- Vestas and DONG Energy have entered into cooperation on
ber of bioenergy projects are feasible and will be profitable. testing of Vestas’ new V164-7.0 MW offshore wind turbine at
DONG Energy’s demonstration site in the waters off Frede-
31 August rikshavn. DONG Energy’s total investment in the establish-
Acquisition of Noreco’s interest in the Siri field ment of the test site will amount to around DKK 240 million.
DONG Energy made an agreement to acquire Noreco’s
interest in the Siri field in the Danish North Sea for DKK 70 04 November
million. The transaction was completed at the end of 2011 Acquisition of rights to further develop
and DONG Energy is now the sole owner of the field. Borkum Riffgrund West 1
DONG Energy acquired the rights to further develop the
01 September offshore wind project Borkum Riffgrund West 1 from Ener-
Marubeni Corporation co-owner of Gunfleet Sands gie-kontor AG for approximately EUR 30 million.
offshore wind farm
Marubeni Corporation has entered into an agreement 16 December
with DONG Energy whereby Marubeni acquires a 49.9% Acquisition of stake in the first two projects in SMart
stake in the 172 MW Gunfleet Sands offshore wind farm. Winds Hornsea zone
Marubeni paid a cash consideration of approximately DONG Energy acquired a 33.3% stake in the first two off-
GBP 210 million for the stake. shore wind farm projects in the Hornsea Zone from SMart
Wind. The purchase price is approximately GBP 15 million
with an option to acquire the remaining 66.7% of the
shares at a fixed market price. DONG Energy also acquired
an option over an additional 1 GW from the Hornsea Zone.

pERFORMANCE highlightS, FINANCIAL
DKK million EUR million
2011 2010 2009 2008 2007 2011 2010
Business Performance
Statement of comprehensive income
Revenue: 56,842 54,616 49,569 60,642 41,342 7,630 7,333
Exploration & Production 10,469 8,264 6,416 7,322 4,486 1,405 1,109
Wind Power 4,312 2,952 1,676 1,453 1,201 579 397
Thermal Power 10,665 11,731 10,855 13,800 11,130 1,431 1,575
Energy Markets 33,689 31,516 28,889 37,357 20,263 4,522 4,232
Sales & Distribution 13,009 14,185 13,386 15,595 14,551 1,746 1,905
Other activities/eliminations (15,302) (14,032) (11,653) (14,885) (10,289) (2,053) (1,884)
EBITDA: 13,770 14,135 9,311 13,428 9,323 1,848 1,898

Exploration & Production 5,684 5,051 3,264 4,261 2,366 763 678
Wind Power 1,799 1,730 609 677 605 241 233
Thermal Power 2,255 2,228 388 2,388 3,096 303 299
Energy Markets 1,963 2,959 2,735 4,352 1,583 263 398
Sales & Distribution 2,027 2,036 2,239 1,827 1,961 272 273
Other activities/eliminations 42 131 76 (77) (288) 6 18
EBITDA adjusted for special hydrocarbon tax 12,254 13,118 8,842 12,681 9,301 1,644 1,761
EBIT 6,100 8,120 4,228 7,809 4,500 818 1,090
Adjusted operating profit 4,444 6,985 3,658 6,842 4,314 596 938
Profit for the year 2,882 4,499 1,492 4,669 3,046 386 604
Key ratios
Financial gearing x 0.41 0.43 0.60 0.33 0.35 0.41 0.43
Adjusted net debt / EBITDA x 1.9 1.9 3.3 1.4 2.0 1.9 1.9
Adjusted net debt / Cash flows from
operating activitiesx 2.0 1.8 3.3 1.9 2.1 2.0 1.8
Return on capital employed (ROCE)% 5.7 9.6 5.5 11.6 7.4 5.7 9.6
Adjusted return on capital employed % 9.2 15.1 7.7 16.1 10.1 9.2 15.1
IFRS
Statement of comprehensive income
Revenue1: 58,437 54,598 49,262 60,777 41,625 7,845 7,331
Exploration & Production 9,931 8,224 6,579 7,114 4,409 1,333 1,104
Wind Power 4,520 2,947 1,676 1,453 1,201 607 396
Thermal Power 10,231 11,330 10,818 13,890 11,198 1,373 1,521
Energy Markets 36,211 31,764 28,201 38,087 20,262 4,861 4,265
Sales & Distribution 13,178 14,185 13,386 15,595 14,552 1,769 1,905
Other activities/eliminations (15,634) (13,852) (11,398) (15,362) (9,996) (2,098) (1,860)
Revenue, DKK billion Profit, DKK billion
Profit after tax EBITDA
70 14
Likvider EBITDA
60 12
Bindende lånefaciliteter Resultat efter s
50 10
40 8
30 6
20 4
10 2
0 0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

DKK million EUR million
2011 2010 2009 2008 2007 2011 2010
IFRS
Statement of comprehensive income (continued)
EBITDA: 15,595 14,089 8,840 13,622 9,606 2,093 1,892

Exploration & Production 5,146 5,012 3,427 4,053 2,290 691 673
Wind Power 2,007 1,725 609 677 605 269 232
Thermal Power 1,776 1,864 306 2,478 3,164 238 250
Energy Markets 4,731 3,207 2,046 5,082 1,582 635 431
Sales & Distribution 2,196 2,036 2,239 1,827 1,961 295 273
Other activities/eliminations (261) 245 213 (495) 4 (35) 33
EBIT 7,925 8,074 3,757 8,004 4,783 1,064 1,084

Gain (loss) on disposal of enterprises 225 905 (62) 917 29 30 121
Net finance costs (282) (1,595) (1,362) (1,134) (740) (38) (214)
Profit for the year 4,250 4,464 1,138 4,815 3,259 571 599
Balance sheet
Assets 154,073 137,339 120,552 106,085 89,710 20,725 18,424
Additions to property, plant and equipment 22,057 16,286 16,530 9,853 11,142 2,962 2,187
Net working capital (181) 2,466 3,898 5,548 4,555 (24) 331
Interest-bearing debt 40,961 38,397 35,926 19,258 18,170 5,511 5,148
Interest-bearing net debt 23,615 22,139 26,930 15,253 14,792 3,177 2,970
Equity 57,740 51,308 44,808 46,190 42,211 7,767 6,883
Capital employed 81,355 73,448 71,737 61,443 57,002 10,943 9,853
Adjusted capital employed 50,190 46,306 46,303 48,287 36,685 6,751 6,212
Cash flows
Funds from Operation (FFO) 11,706 12,498 7,529 11,340 10,083 1,571 1,678
Cash flows from operating activities 12,624 14,214 9,468 10,379 8,842 1,694 1,908
Cash flows from investing activities (19,338) (14,793) (21,199) (8,629) (11,803) (2,595) (1,987)
Gross investments (18,451) (15,692) (18,131) (11,146) (17,512) (2,477) (2,107)
Net investments (13,060) (8,530) (19,040) (8,666) (12,013) (1,752) (1,146)
1
For an explanation of the development in revenue, see page 33.
Definitions of performance highlights are set out on the inside of the back cover.
For a description of the performance measure ’business performance’, see pages 33-34 and note 40 on accounting policies in the complete
annual report.
Investments and cash flows, DKK billion Capital structure, times
Net investments Cash flows from operating activities Adjusted net debt/Cash flows Adjusted net debt/
from operating activities EBITDA
20 4
Pengestrømme fra driftsaktivitet Justeret n
15 3 Nettoinvesteringer Justeret n
10 2
5 1
0 0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

PERFORMANCE highlightS, NON-FINANCIAL
2011 2010 2009 2008 2007
Volumes
Production:
Oil and gas production million boe 26.4 24.4 24.0 18.5 11.3
- oil million boe 9.3 9.0 8.5 10.0 9.1
- gas million boe 17.1 15.4 15.5 8.5 2.2
Electricity generation TWh 20.4 20.2 18.1 18.5 20.5
- thermal TWh 16.0 16.2 15.3 16.0 17.3
- wind and hydro TWh 4.4 4.0 2.8 2.6 3.2
Heat generation PJ 42.6 53.2 46.7 46.4 47.3
Sales and distribution:
Gas sales (excl. own consumption at power stations) TWh 115.6 108.5 94.0 99.4 78.8
Electricity sales TWh 9.9 10.4 10.7 10.9 10.9
Gas distribution TWh 9.9 11.4 10.0 10.3 10.2
Electricity distribution TWh 8.8 9.1 9.2 9.4 9.3
Oil transportation, Denmark million bbl 72 78 85 91 100
Environment
EU ETS CO2 emissions million tonnes of CO2 10.8 11.8 11.9 12.6 13.8
CO2 emissions per energy unit generated
(electricity and heat) 1 g/kWh 486 524 574 590 613
Green proportion of electricity and heat generation 1 % 29 30 27 25 24
Nitrogen oxides (NOX) g/kWh 0.36 0.38 0.50 0.61 -
Sulphur dioxide (SO2) g/kWh 0.06 0.07 0.14 0.19 -
Gas flaring (offshore and at gas storage facility) million Nm3 9.0 33.0 7.3 8.6 9.7
Oil discharged to sea from production platforms tonnes 16 8 18 24 23
Reinjection of produced water on production platforms % 68 78 49 51 56
Recycling of waste in administration % 48 32 31 10 45
Recycling of waste in facilities % 59 57 57 52 45
Significant environmental incidents number 5 6 5 1 2
Working conditions
Full time equivalents (FTE) number 6,098 5,874 5,865 5,644 5,042
Average age years 42 43 43 43 43
Employee turnover % 12 12 11 12 14
Lost time injuries number 74 93 129 112 112
Lost time injury frequency per one million hours
(LTIF) worked 4.1 4.6 6.8 7.5 10.4
Fatalities number 3 3 1 1 0
1
Measured on a proportionate basis for all activities and consequently includes associates and non-consolidated enterprises.
The accounting policies are set out in the complete annual report on pages 152-155.
CSR report
Being responsible and responsive are core values in DONG work on responsibility. Furthermore, DONG Energy adheres
Energy. The Group believes that no company can achieve to the ten principles of the UN Global Compact and follows
lasting success without ethical integrity, environmental the guidelines set out in the Global Reporting Initiative.
stewardship and the development of positive relationships The DONG Energy Group’s policies, actions and results
with the people, communities and organisations affected can be seen on the following page.
by its activities. Further information can be found on the responsibility
In 2011, the Board of Directors adopted a responsibility page at dongenergy.com.
policy that sets out the overall principles for the Group’s

Corporate Social Responsibility
In line with the re-
UN Global sponsibility policy,
Compact DONG Energy is com- Status at
Principle mitted to Actions and implementation 2011 Targets 31.11.2011
Climate and Reducing greenhouse DONG Energy is committed to reducing its CO2 • 320g/kWh 486g CO2 /kWh
environment gas emissions emissions from electricity and heat by 2020
(Principles 7-9) generation. Key initiatives include: • 100g/kWh
• New investments in offshore wind farms by 2040
• Increased use of biomass in energy
production
• Continued phasing-out of coal-fired units
DONG Energy continuously aims to increase 10% improve- Target was new
energy efficiency, partly through optimisation of ment in energy for 2011. Status
production processes efficiency by 2015 will be pre-
(compared with sented in 2012
2010) annual report
Minimising local envi- DONG Energy strives to limit local air pollution By 2020 com- • SO2 99%
ronmental impacts from SO2 and NOx emissions from electricity pared with 1990: • NOx 89%
and heat generation by, among other things, • 95% reduction
installing environmental facilities for flue gas in SO2
treatment and taking the most obsolete power • 90%reduction
station units out of service in NOx
DONG Energy increased its recycling of waste 65% of waste 59% of waste
from facilities and administration in 2011 still from facilities and from facilities
further through continuous improvement and 50% of waste and 48% of
monitoring of waste handling from administra- waste from
tion must be recy- administration
cled by 2012 recycled in 2011
Labour rights Ensuring the safety Safety is the top priority in DONG Energy. In No fatalities and Three fatalities
(Principles 3-6) of employees and 2011, the Group continued its efforts to develop LTIF of 5.2 in and LTIF of 4.1
suppliers a strong safety culture focusing on risk assess- 2011.
ment and proactive prevention as well as follow- The LTIF target
up on all incidents for 2012 is 4.1
Ensuring the long- DONG Energy has a strategic focus on recruit- Image and lead- According to
term availability of ment and retention of skilled employees and ership are ‘People Matter’
sufficient numbers of long-term development of talent. Initiatives in focus areas for 2011, the fol-
skilled employees 2011 included: 2011/2012 lowing aspects
• Implementation of a diversity policy have improved
• Follow-up on the results of the employee sur- compared with
vey ‘People Matter’ 2010 2010:
• Satisfaction
and
motivation
• Perception of
image
• Employment
security
Human rights Ensuring respon- DONG Energy is committed to countering any Updated supply Follow-up audit
(Principles 1-2) sible supply chain abuse of human rights from the Group’s as well chain audit strat- in Colombia
management as its suppliers’ activities. In 2011, the Group egy to be imple- completed in
became a founding member of ‘Better Coal’, mented in 2012 December 2011
which aims to advance CSR issues in the coal
supply chain
Anti-corruption Preventing fraud and In 2011, DONG Energy conducted a comprehen- Continue to raise o data for 2011
N
(Principle 10) corruption sive analysis of selected management systems awareness of as improved
and business practices, which will help support policy on good methodology for
the Group’s future efforts to prevent corruption business conduct collecting data
as well as the on training on
Group’s whistle- good business
blower system conduct is in
progress

Energy markets are affected by the economic climate, political priorities
Market conditions
and natural phenomena
2011 started on an optimistic note, with signs of improve- native, other sources are therefore increasingly being used,
ments in the European economies following the financial such as pension funds and other institutional investors.
and economic crises that struck Europe from mid-2008. The prices of oil and gas fell sharply in 2008-09 in the
Over the summer and autumn, the optimism was re- wake of the financial and economic crises. There was no
placed by economic uncertainty in the shape of the debt corresponding trend in 2011, when oil and gas prices re-
crisis in Europe, large government budget deficits, the mained at a higher level (USD 111/bbl on average in 2011
weakening of the euro against the US dollar, limited eco- against USD 62/bbl in 2009 for oil and EUR 23/MWh
nomic growth and the resulting lower demand for energy. against EUR 12/MWh for gas). The wider spread between
At the same time, the challenges in relation to global oil and gas prices, with relatively higher oil prices (decou-
warming remain high on the political agenda. However, pling), which arose in spring 2009, continues to prevail.
this has not had any visible effect on the pricing of CO2 The accident at the Fukushima nuclear power station in
emissions allowances, as efforts to achieve global en- connection with the earthquake in Japan in March 2011 led
dorsement of targets for reducing CO2 emissions have yet to a change in the approach to nuclear power in several
to succeed. Since summer 2011, it has become more likely countries. In Germany, several older nuclear power sta-
that there will be an oversupply of CO2 emissions allow- tions were immediately shut down and a decision was
ances in Europe, and the prices of allowances were at the taken to phase out the remaining stations faster than
lowest level to date at the end of 2011. originally planned.
In Europe, there is still the will to support green invest- Despite this, there is still surplus capacity for the
ments. In both the UK and Germany, initiatives were un- generation of electricity in Europe, and demand is lower
dertaken in 2011 to strengthen renewable energy. than before the financial crisis. The surplus capacity is not
The European energy sector faces large investments in expected to be reduced until a number of the most pollut-
renewable energy and infrastructure. However, access to ing coal-fired power stations in Europe are phased out in
capital has become more difficult as a consequence of the the coming 3-8 years.
debt crisis and the beleaguered financial sector. As an alter-
Biomass must be sustainable

Coal is on the way out of DONG Energy’s power stations. that DONG Energy uses continue to reduce CO2 emis-
The plan is for wood pellets, in particular, to replace coal. sions and preserve biodiversity.
Wood pellets can be produced in several different ways.
If they are produced sustainably, they reduce CO2 emis- “With wood pellets, Danish power stations can deliver
sions without harming biodiversity. To ensure a sustaina- green electricity and heat to supplement the more variable
ble production of wood pellets, DONG Energy will make wind energy. I hope that the European authorities will be
further requirements of wood pellet producers. inspired by the criteria that DONG Energy and our partners
have established and will develop pan-European standards
There are currently no general standards for sustainability for sustainability for biomass. That would enable us to talk
in relation to solid biomass. Therefore, DONG Energy has to the producers of wood pellets with even greater convic-
worked with other European energy companies to draw up tion so we can ensure that the wood pellets we use in Eu-
sustainability criteria for the production of wood pellets. rope continue to be sustainable,” says Thomas Dalsgaard,
The criteria are designed to ensure that the wood pellets Executive Vice President of Thermal Power.

Spearheading the development
business and strategy

of the energy of the future
The strategy will push DONG Energy to the forefront in the transition
to the energy of the future
DONG Energy’s ambitious business strategy takes as its Halving CO2 emissions, g CO2 per kWh
starting point some of the world’s biggest challenges in the
Realised Target
energy market, as DONG Energy aims to create value by de-
livering ever cleaner and more reliable energy with no emis- 650
638
613 Mål
sions of CO2. 600 590
The global population passed the seven billion mark in 2011 574 Realisere
550
and this number will continue to grow. As the growing global
524
population strives to secure a share in the world’s prosperity, 500 524
486
the world’s energy needs will grow. These two challenges also
450
present the world with a third challenge: to reduce emissions of
CO2 so that man-made climate change can be reduced. 400
By 2020, DONG Energy wants to halve its CO2 emissions

350
from electricity and heat generation compared with 2006. 320
At the same time, DONG Energy wants to double EBITDA 300

2006 2008 2010 2012 2014 2016 2018 2020
by 2015 compared with 2009 by means of organic invest-
ments. The Group is well on the way to achieving these tar-
gets. Doubling EBITDA, DKK billion
The investments will increase DONG Energy’s produc-
Realised Target Trend
tion of energy and are being made primarily in the two busi-
17.6
ness areas in which DONG Energy has the greatest compet- 18
itive edge and strong capabilities: design, construction and 16 Likvider

EBITDA
operation of offshore wind farms, and oil and gas explora- 14 13.8
Bindende
tion and production. 12
To retain its ability to gauge, at an early stage, the
10
8.8
changes in the market and society that are of importance to
8
DONG Energy’s strategic priorities, the Group works con-
6
certedly on innovation to retain its lead.
4
The four main strategic directions 2
DONG Energy pursues four main strategic directions to achieve 0

2009 2010 2011 2012 2013 2014 2015
the Group’s ambitious objectives. They are illustrated below
and will be explained in further detail on the following pages.

dong energy’s strategic directions
Wind and biomass growth Robustness via the

integrated business model
Growth in the production Development of the flexible

and sourcing of oil and gas energy system of the future

r Robusthed gennem den
se integrerede forretningsmodel
r frem-
Wind and biomass growth
Udvikling af fremtidens
e og gas fleksible energisystem
DONG Energy wants to change the Group via organic growth by means
of investments in green energy from offshore wind farms and conversion of
power stations to biomass
By 2020, the target is to halve DONG Energy’s CO2 emis- More renewable energy
sions per kWh generated compared with 2006, and CO2 Efficient utilisation of DONG Energy’s unique capabilities
emissions should be reduced to 100 g/kWh by 2040. in the area of offshore wind has meant that DONG Energy
These ambitious targets will be achieved by radical is the global market leader in the design, construction and
conversion of DONG Energy’s electricity generation from operation of offshore wind farms.
fossil to renewable energy. DONG Energy continues to de- The electricity generation capacity from wind continues
velop offshore wind farms in Denmark, the UK and Ger- to rise. Together with electricity generation from power sta-
many, and the plan is for coal-fired power stations to be tions based on biomass and waste, plus hydro power, re-
converted to biomass. DONG Energy has also made invest- newable energy accounted for 31% of DONG Energy’s total
ments in power stations that use gas, which emits signifi- electricity generation capacity in 2011.
cantly less CO2 than coal. This is the best alternative, The use of coal has been reduced and, compared with
among fossil fuels, for safeguarding reliable energy supply. 2006, the coal-fired power stations’ proportion of total ca-
DONG Energy operates gas-fired power stations in Den- pacity for energy production was halved to 24% at the end
mark, the UK, Norway and the Netherlands. of 2011. DONG Energy had five coal-fired power station units
The transition to greener energy generation entails fewer than in 2006. At the end of 2011, gas-fired capacity ac-
greater technological and geographical diversification. DONG counted for 31% of total electricity generation capacity.
Energy wants to maintain its position as the market-leading
energy producer in Denmark, while reducing its dependence Global market leader in offshore wind farms
on the Danish market by increasing its presence in the mar- The first offshore wind farms in the world were built on
kets in northwestern Europe. In 2006, 91% of the Group’s Danish territory. DONG Energy has since built several Dan-
electricity generation capacity was located in Denmark. The ish and British offshore wind farms and, in 2013, construc-
Danish proportion was reduced to 67% in 2011 and is ex- tion begins on a German offshore wind farm, Borkum Riff-
pected to account for just over half of capacity in 2015. grund 1.
The first offshore wind farms were established project
Renewable and thermal energy generation capacity, MW by project, but, since the start of 2009, DONG Energy has
been working intensively to develop and install offshore
Coal Oil Gas Biomass Waste Wind Hydro wind farms in an assembly line concept and to enhance ef-
ficiency in all stages of the offshore wind farm value chain.
7,000
The first step
Water was DONG Energy’s
Affaldlarge-scale contract with
6,000
Siemens to buy over 500 offshore wind turbines and the
Biomasse
Wind
5,000
purchase of the installation company A2SEA, which is
Waste Gas
4,000 jointly owned with Siemens. With these and other meas-
Biomass Oile
3,000 ures, the farms can be established in a continuous process
2,000
Gas focus on optimum
with a constant Kul use of skills and re-
1,000 Oil
sources and thus maximum value creation at all stages
0
from design
Coalto operation. As the construction cost makes
2006 2011 2015 up three quarters of the total cost in the service life of an
estimate

Waste is a valuable resource
It is well known that household waste can be burned and Metal and glass are also separated in the process for re-
thus generate energy. DONG Energy and its partners have cycling, as well as nutrients that can be used for fertiliser
developed brand-new technology that converts waste into in agriculture.
energy more cost-effectively, more flexibly and more effi-
ciently than combustion. “At DONG Energy, we see waste as a valuable resource
and, with REnescience, we make much more intelligent
DONG Energy has called this technology REnescience. use of waste than with other methods. We have developed
Household waste directly from refuse trucks is treated the process from the laboratory to the demonstration
with enzymes and becomes a liquid for energy purposes stage. Now we will make REnescience part of our busi-
that can be converted into biogas and a solid fraction that ness,” says Manager Nanna Dreyer Nørholm, New Bio
can be used directly to generate electricity and heat. Solutions.
offshore wind farm, it is essential to keep to schedules so final investment decisions regarding the construction of
that the capital invested can start to be repaid as soon as around 1,500 MW additional wind turbines, some of which
possible. are expected to be built together with partners thus reduc-
ing DONG Energy’s share (see figure on page 21).
Wind power challenges power stations The fast-increasing volume of electricity from wind tur-
In 2015, half of DONG Energy’s electricity generation ca- bines in the Danish grid sets the Danish power stations
pacity will be CO2-free or CO2-neutral, as electricity from completely new challenges. The power stations will play a
wind and hydro is expected to account for 36% of total ca- different role in a future in which much more wind power is
pacity, while biomass will account for 17%. Gas will ac- available as there will still be a need to balance electricity
count for 30%, while electricity generation capacity from generation. DONG Energy is continuously striving to be-
coal and oil will have been reduced to 17%. come more efficient at flexible, market-aligned operation
DONG Energy works concertedly to select and develop of its power stations.
new offshore wind turbine projects. It is essential to have a
large pipeline to enable us to meet our objective of contin-
uously increasing the proportion of electricity generation
from renewable energy sources. On top of its 1,025 MW of
wind capacity at the end of 2011, DONG Energy has made

for frem- Udvikling af fremtidens
olie og gas fleksible energisystem
Growth in the production and sourcing of oil and gas
DONG Energy is producing increasing volumes of oil and gas to help meet
the increasing demand for energy
In the years to come, DONG Energy will focus on increas- In Norway, E&P has gained a position among the Top 10
ing its production of oil and gas to help maintain security companies, partly based on its position in the large Ormen
of supply and the Group’s earnings. This will be done via Lange gas field. E&P has also contributed to the develop-
investments in exploration and production (E&P) of oil and ment of a model for commercial development of and pro-
gas from its own fields, for example in the North Sea. The duction from small, but attractive, fields such as Oselvar
Group’s equity production of gas will continue to be an im- and Trym.
portant source of its gas sales. The proportion of oil in the In the area between the Shetland Islands and the Faroe
portfolio will be increased in order to reduce the oil price Islands, DONG Energy has made a number of finds of both
risk in DONG Energy’s gas purchase contracts and to en- oil and gas. Advanced exploration technology and in-depth
sure high value creation. knowledge of precisely the type of subterranean structure
The Group has strong capabilities in oil and gas explo- that exists in the West of Shetland area have resulted in
ration and production. The objective is to make use of this seven out of nine exploration wells being successful. To-
expertise to achieve solid growth in the production of oil gether with the French oil company Total, E&P has contrib-
and gas and also safeguard continuous replenishment of uted to a solution to the challenge in the area in terms of
reserves, partly via exploration. the lack of infrastructure, as the companies are establish-
DONG Energy will also secure the supply of gas to the ing a pipeline system in connection with the development
Group’s markets in Northern Europe by means of a diversi- of the Laggan-Tormore gas fields that will create a link
fied gas supply strategy, which, besides increasing equity from production in the area to the UK market. DONG En-
production, will be based on contracts with other produc- ergy has a 20% stake in Laggan-Tormore.
ers of natural gas, including LNG (liquefied natural gas).
Diversified gas supply strategy
Infrastructure and production Until 2006, the gas portfolio consisted primarily of long-
DONG Energy has built up an E&P company that has a term contracts with Dansk Undergrunds Consortium
strong position in Denmark, Norway and the promising (DUC). The portfolio has since become more diversified
West of Shetland area in the UK. The total reserves amount with a continued rise in equity production of gas, pur-
to more than 17 times the annual production (R/P ratio) in chases from other producers in the North Sea and pur-
2011, which secures production for many years to come and chases on gas hubs. Diversification was increased further
shows that, in recent years, DONG Energy has built up a ro- in 2011 via DONG Energy’s co-ownership of the new LNG
bust E&P business that has strong capabilities in this field. terminal Gate in Rotterdam, which became operational in
In Denmark, E&P has developed its production around September 2011, plus new long-term gas purchase con-
the Siri platform, where major repair work is underway to tracts. Diversification is also a key word in the sale of gas,
extend its life to 2020 and maybe beyond. Furthermore, which now covers DONG Energy’s entire market territory.
E&P has made new attractive finds on the Danish shelf that A breakdown of gas production and gas sales in 2011 is
can contribute to an extension of security of supply and shown in a graph on page 25.
value creation from the Danish shelf in the years to come.

DONG Energy involves local operators
in oil exploration
Exploration for oil and gas is linked to environmental risks the Barents Sea. One of the results of the dialogue has
that must be managed on the basis of the best possible been joint environmental emergency plans that are de-
knowledge base. One of the ways in which DONG Energy signed to protect the coastline in the event of accidents.
ensures this is by working with relevant local operators
who can contribute knowledge and challenge the solu- “Risk is part of business in our industry. But by involving
tions chosen. stakeholders and being open and responsive in relation
to oil drilling, we believe that we have created trust in
In Norway, in recent years, DONG Energy has worked with DONG Energy and have reassured the local community,”
local fishermen and public authorities on the Group’s says QHSE Manager Morten A. Torgersen, DONG
mapping of potential environmental impacts of drilling in E&P Norge.

nem den
etningsmodel
Robustness via the integrated business model

mtidens
system
DONG Energy wants to create value by optimising and developing the

total energy portfolio with assets and market positions throughout the
value chain
DONG Energy’s business model is fully integrated with vately owned companies and institutional investors, includ-
value creation in all stages of the energy value chain. Up- ing pension funds.
stream with oil and gas exploration and production and These two growth areas complement each other in terms
electricity generation, midstream with all types of trading, of risk. The investments in Wind Power are characterised by
wholesale sales and energy distribution, and downstream producing relatively stable income, partly as a consequence
with direct energy sales to end customers. of regulation and the subsidy regimes established to support
The integrated business model, with a diversified portfolio the development of the industry. The investments in Explora-
of assets, secures both robustness and balancing of risks as tion & Production are characterised by providing a less cer-
the individual stages of the value chain are, to some extent, tain return but also have considerable potential.
affected differently by market developments. The increased geographical spread of electricity genera-
There is also an active management of risks in the indi- tion from wind turbines and power stations reduces the
vidual stages of the value chain. The investments in DONG Group’s market price risks. In 2007, two-thirds of the value of
Energy’s two growth areas, Exploration & Production and electricity generation was sold at market prices on the Nord
Wind Power, are spread over several countries and made in Pool power exchange. This proportion is expected to be re-
partnership with different partners in order to achieve diver- duced to 12% by 2015. In terms of price, this part of genera-
sification of the risk. In the E&P sector, partnerships have tion depends greatly on temperature and precipitation levels
been the norm for several years. However, DONG Energy has in the Nordic countries and is thus very difficult to predict
now also succeeded in introducing partnerships in connec- and very variable. However, the proportion of electricity gen-
tion with the establishment and operation of offshore wind eration settled at fixed prices is expected to rise from 13% in
farms. The partners include other energy companies, pri- 2007 to 67% in 2015 as a consequence of the transition to
more green energy.
With the various developments in oil and gas prices in re-
Breakdown of electricity generation1
cent years (decoupling), the composition of purchase and
Fixed prices incl. certificates Nord Pool variable prices sales contracts in the gas portfolio has assumed greater im-
UK variable prices Other portance for earnings for both DONG Energy and other play-
100% ers in the market. This is because the settlement prices for
Other purchase contracts are closely linked to
gas in long-term
80%
changes in UKthe
variable
price ofprices
oil, while sales contracts are more de-
60%
pendent on gasPool
Nord hub variable
prices. Therefore,
prices a higher increase in
the price Fixed
of oil than theincl.
prices price of gas is negative for DONG En-
certificates
40% ergy. However, these effects are mitigated as far as possible
20%
via the Group’s diversification strategy, which results in
DONG Energy being less financially vulnerable to the decou-
0% pling. DONG Energy has a relatively balanced gas portfolio
2007 2011 2015
estimate composition between the purchase and sales side. For exam-
1
The proportion is calculated on the basis of revenue from wind ple, our equity production of oil and gas helps reduce this
farms and contribution margin from thermal power stations. problem considerably.

The ambitious business strategy
means stricter requirements for managers
The execution of DONG Energy’s ambitious business strat- “Each employee must understand his or her role in rela-
egy means stricter requirements for individual managers. tion to the strategy. We achieve this by means of annual
The managers must help ensure the right balance between performance and development reviews between
growth and discipline in relation to the overall business managers and employees. The reviews take place after
strategy. the managers’ performance and development have been
assessed in relation to the strategy. This enables us to
To obtain a thorough analysis of the current managerial create cohesion at all levels,” says Hanne Blume, Vice
resources in DONG Energy, an extensive assessment of President of People & Development.
the Top 200 managers was carried out in the first half of
2011. The ongoing assessment and development of
managers in relation to the overall strategy are linked to
the annual dialogue with all employees on performance
and development.
Strategic robustness This focus has helped DONG Energy come through the
DONG Energy has focused its operations in recent years. financial crisis and subsequent debt turmoil in Europe
Growth will be in wind, biomass and oil and gas. At the unscathed. Its robustness is also the reason why DONG
same time, a number of activities have been divested, in- Energy is continuously able to raise the necessary capital
cluding interests in hydro power, small-scale CHP plants for investments on attractive terms.
and oil terminals.

emtidens
isystem
Development of the flexible energy system

of the future
With a rising proportion of wind energy, there is a growing need to be able

to both sell and source electricity to and from the surrounding markets
Denmark is undergoing a rapid transition, with the volume energy supply rests with the system operators (in Denmark
of renewable energy being expanded and dependence on it is Energinet.dk). At the same time, DONG Energy is in-
fossil fuels being reduced. The Danish energy system is an volved in the work to develop market-based mechanisms
important market for DONG Energy. Therefore, DONG En- and new technologies that can help create a balance be-
ergy is playing an active role in the development of the en- tween generation and consumption. One way of balancing
ergy system of the future. supply and demand would be to build capacity to transmit
electricity through cables to surrounding markets.
Need for greater flexibility In terms of generation, Denmark’s high proportion of
When an ever higher proportion of energy in the system electricity from wind turbines means that the power sta-
comes from wind turbines, the generation of energy be- tions have to be extremely flexible. Where power stations
comes less predictable and more variable. Therefore, it will previously generated the majority of electricity, their task
be necessary to have flexible systems to ensure there is a is increasingly to contribute to a reliable supply of elec-
balance between energy demand and energy generation. tric-ity by supplementing wind generation so that there is
The challenge is to make use of the surplus energy dur- sufficient electricity in the system to meet demand. This
ing windy periods and also be able to supply sufficient requires extensive adaptation of operations. DONG En-
energy when there is no wind. Responsibility for balancing ergy is also planning to convert the Danish power sta-
tions to green electricity generation by increasing its use
of biomass.
Electricity interconnectors to surrounding markets
New energy technologies on the way to the market
In the future, biomass will supplement wind power to se-
Existing cure a clean and reliable energy supply. Over the past ten
Under construction
years, DONG Energy has conducted research into how bio-
Potential
mass can be used intelligently for the production of energy.
This research has resulted in the development of, among
other things, three biorefining technologies called Py-
roneer, Inbicon and REnescience. The technologies make it
possible to convert biomass residual products from agri-
culture and households into gas, bioethanol and other
UK biobased energy resources.
DONG Energy’s targeted contributions to the develop-
ment of the energy system of the future are being made in
close collaboration between innovative incubators inter-
The Netherlands
nally at DONG Energy and external research and university
environments and enterprises.

DONG Energy contributes to green growth
by establishing offshore wind farms
While the rising generation of electricity from wind bene- “The Anholt project shows that the Danish suppliers in
fits customers in the form of greener electricity, DONG the industry can hold their own internationally. All the
Energy also contributes to value creation and economic work was put out to tender on equal EU conditions, but
growth in the local areas in which the Group operates. In Danish-based companies won two thirds of the orders,”
connection with the construction and operation of the says Flemming Thomsen, Project Manager of Anholt
Group’s new offshore wind farm at Anholt in Denmark, it offshore wind farm.
is expected that 8,000 jobs will be created in each of the
two years in which the farm is being constructed.
Impact on customer consumption systems in the grid and at the customer’s home, it is possi-
On the consumption side, efforts are being made to make ble to ensure that charging takes place at a time at which
consumer demand for energy more flexible so that con- there is surplus electricity generation from wind turbines but
sumption more closely matches the periods in which high consumption is low.
levels of wind energy are being generated. Electric cars are a In 2011, DONG Energy began a trial of intelligent, flexi-
good example of how flexibility can be incorporated in elec- ble electricity consumption in 155 private households. The
tricity consumption. An electric car needs to be charged with households were supplied with a ‘smart’ unit that reacts to
electricity to run. However, the charging does not need to a price signal and starts or stops heat pumps, charging of
take place at the time at which the plug is inserted in the electric cars or other units with high electricity consump-
socket. Customer needs will typically dictate that charging tion. The aim of the trial is to study the customers’ ability
takes place during the evening and the night, so that the and desire to interact with their electricity supplier to
car is ready for use the following morning. With intelligent achieve flexible electricity consumption.

&EXPLORATION
exploration
at a glance
production & PRODUCTION
Continued growth and value creation

Exploration & Production explores for and produces oil and gas. In 2011, daily production
averaged 72 thousand boe, of which 82% came from Norwegian fields and 18% from Danish
fields. The portfolio of reserves (2P) is robust and amounted to 446 million boe at the end of 2011,
equivalent to 17 years’ production.
Exploration & Production has 65 licences: 13 in Denmark, 21 in the UK (West of Shetland), 27 in

Norway, 2 in Greenland and 2 on the Faroe Islands. Constant exploration for oil and gas is part
of the foundation of the Group’s growth strategy. The objective is solid growth in production to
enhance security of supply and earnings.
Executive Vice President Read more about Exploration & Production:

Søren Gath Hansen www.dongenergy.com/EN/EP
EP - EN Renewables - EN Generation - EN Energy Markets - EN

The photo shows the Siri platform in the
Danish part of the North Sea.
Northern Norway
Greenland
DONG Energy office Producing oil/gas field, Oil/gas field under devel-
partly owned by DONG opment, partly owned by
Geographic focus area Energy. DONG Energy is DONG Energy
for oil and gas exploration a licence partner
and production Oil/gas field under evalua-
Producing oil/gas field, tion, partly owned by
partly owned by DONG DONG Energy
Gassled, gas transmission Energy. DONG Energy is
system partly owned by the licence operator
New discovery in 2011
DONG Energy
Production and reserves (2P) of oil and gas, million boe

Reserves (2P), year end Production
REVENUE
Reserves (2P) Production
DKK 10.5BN 450 45
400 40 Produktion
350 35
14%
300 30
250 25
Reserver (2P), ultimo
200 20
150 15
100 10
50 5
EBITDA 0 0
DKK 5.7BN 2009 2010 2011
R/P-ratio
41% 2009
15
2010
18
2011
17
New producing fields 2011-2015

New fields in production 2011-2014
EMPLOYEES (FTE)
652 2011 2012 2013 2014 2015
Trym Oselvar Syd Arne Phase 3 Laggan-Tormore Hejre *
Norway Norway Denmark UK Denmark
11%
Marulk
Norway
For 2012-2015, oil and gas fields for which a final investment decision has been made are shown.
* Decided February 2012.
The percentages indicate the proportion of the
Group that each business area accounted for in 2011.
wind power
at a glance
Global market leader in

offshore wind power
Wind Power develops, constructs and operates wind farms in Northern Europe. The focus is on
the UK and Germany as the largest growth markets.
To maintain its position as the global market leader, DONG Energy focuses on developing a
robust and balanced project pipeline across countries and markets and on having in-house
capabilities in all stages of the project value chain. To reduce costs, the Group also focuses
on enhancing the efficiency of projects via installation concepts and framework agreements.
In addition, Wind Power enters into partnerships with industrial and financial partners to
spread risks and secure co-financing for projects.
CEO Read more about Wind Power:

Anders Eldrup www.dongenergy.com/EN/Wind_Power
EP - EN Wind Power - EN Thermal Power - EN Energy Markets - EN

20 Management’s review – DONG Energy Group annual report 2011 SD - EN
The photo shows the construction of the
Walney offshore wind farm in the UK.
DONG Energy office 283 onshore wind turbines

in Denmark
Wind farms in operation

Hydro electric station – partly
owned by DONG Energy
Wind farms under
construction
Present and planned capacity
Existing and planned wind capacity, MW
Offshore wind capacity Onshore wind capacity

REVENUE
DKK 4.3BN 333 2,052
602
6% 1,025
92
London Array 1
315 MW (UK)
Anholt
200 MW (DK)
Lincs Borkum Riffgrund 1
EBITDA 68 MW (UK) 139 MW (DE)
Walney 2 Demo projects West of Duddon Sands
DKK 1.8BN 92 MW (UK) 19 MW (UK/DK) 194 MW (UK)
2012 2013 2014

Capacity Expected capacity
13%
at 31/12/2011 at 31/12/2014
For 2012-2014, wind farms for which a final investment decision has been made are shown.
MW denotes DONG Energy’s proportionate ownership interest.
Electricity generation, TWh

EMPLOYEES (FTE) 5
1,219 Elproduktion,Elproduktion,
TWh TWh
4
20% 2
0
The percentages indicate the proportion of the 2009 2010 2011
&thermal
exploration
at a glance
production
power
Transition to greener energy generation

at the power stations
Thermal Power generates electricity and heat from thermal power stations. Most electricity and
heat is generated at central coal-fired, gas-fired and biomass-fired CHP plants in Denmark and at
new gas-fired power stations in Norway, the Netherlands and the UK. In the years to come, it is
expected that coal and gas can largely be replaced by biomass at the Danish power stations. This
will reduce CO2 emissions significantly for a substantial part of the heat supply in large Danish
cities. Work is also in progress to make generation more flexible so that it can be better aligned to
the varying generation by wind turbines.
Biomass is an important resource in the energy system of the future. Based on new refining tech-
nologies, innovative solutions are being developed for efficient and flexible utilisation of waste
and biomass for both energy and other resources, for example nutrients.
Executive Vice President Read more about Thermal Power:

Thomas Dalsgaard www.dongenergy.com/EN/Thermal_Power
EP - EN Wind Power - EN Thermal Power - EN Energy Markets - EN

22 Management’s review – DONG Energy Group annual report 2011 SD - EN
The photo shows one of the Group’s central
power stations – Skærbæk power station.
Zealand
DONG Energy office Electricity and heat Small-scale CHP plants

generation, gas-fired power
On 31/12 2011, DONG
Inbicon bioethanol plant station
Energy was the owner of
A long-term lease has been nine small-scale and three
Central power stations entered into with Statoil as waste-fired CHP plants in
a result of which the plant Denmark. Four of the
Electricity generation, is accounted for as held small-scale CHP plants
gas-fired power station under a finance lease. were sold on 1/1 2012.
Thermal power station capacity by fuel, MW
REVENUE Coal Oil Gas Biomass Waste

DKK 10.7BN
6,000
Affald
5,000
Biomasse
15% 4,000
3,000
Gas
Oile
2,000 Kul
1,000
EBITDA
DKK 2.3BN 0
2006 2011 2015
estimate
Electricity and heat generation
17% Electricity generation, TWh

TWh
16
Heat generation, PJ
PJ
56
Elproduktion,
Varmeproduk
EMPLOYEES (FTE) 12 42
1,285
8 28
21%
4 14
0 0
2009 2010 2011

&ENERGY
exploration
at a glance
production
MARKETS
Energy Markets optimises energy flows

Energy Markets connects the energy production from wind turbines, power stations and gas fields
with wholesale customers in North West Europe in the most optimum way.
With strong market insight from its experienced employees, Energy Markets adds value to energy
flows and secures stable, long-term earnings for the Group by levelling out fluctuations in energy
prices. This also creates optimum conditions for long-term investments in new wind turbines,
power stations and oil and gas fields.
Executive Vice President Read more about Energy Markets:

Kurt Bligaard Pedersen www.dongenergy.com/EN/EM
Renewables - EN Generation - EN Energy Markets - EN

SD - EN
Strong market insight from experienced and
talented people is Energy Markets’ core asset.
DONG Energy office LNG terminal, partly owned by Energy hub or exchange on
DONG Energy which Energy Markets is active
Gas pipeline, wholly-
owned or partly owned Gas storage facility owned by Stadtwerke Lübeck, partly
by DONG Energy DONG Energy, in operation owned by DONG Energy
Gas treatment plant Gas storage facility leased by Electricity generation,

DONG Energy, in operation gas-fired power station
Gas receiving facility Gas storage facility partly

owned by DONG Energy, under
construction
Optimising energy flows
REVENUE
DKK 33.7BN
Wholesale
Internal sales
Energy Markets Own power stations (Sales & Distribution)
Gas fields Wind turbines
adds value
47%
by optimising
the connection Distribution
companies Other wholesale
between production
LNG customers
and markets
Power stations
Energy exchange
EBITDA
Gas purchase Gas storage Energy hubs
DKK 2.0BN agreements facilities and exchanges
Gas sourcing 2011 Gas sales 2011
14% 9%
17%
26% 17%
3%
35%
Gas sales
122.3 TWh
EMPLOYEES (FTE) 22%
330 48%
23%
Own production Long-term Germany The Netherlands
5%
contracts
DUC Denmark Sweden
Other
UK

Group that each business area accounted for in 2011..
&SALES
exploration
at a glance
production
& DISTRIBUTION
Efficient and reliable electricity

and gas supply
Sales & Distribution is Denmark’s largest energy supplier and is responsible for efficient and reli-
able supply to more than 1.2 million customers in Denmark, the Netherlands and Sweden. Value
is created primarily via the sale of electricity and gas and via operation of distribution networks.
To this should be added development of products and climate-friendly solutions for customers.
Intelligent consumption and production methods of the future (Smart Energy) is an important fo-
cus area. With more than 100 climate partnerships, DONG Energy engages in close dialogue with
large companies, organisations and municipalities on optimising their energy consumption.
The Group is also expanding internationally and acquired the gas trading company Shell Gas
Direct in the UK in the autumn. The acquisition date is 30 April 2012.
Executive Vice President Read more about Sales & Distribution:

Lars Clausen www.dongenergy.com/EN/SD
Generation - EN Energy Markets - EN

SD - EN
The photo shows a meter technician calling
on a customer to replace an electricity meter.
DONG Energy office Oil processing plant Gas sales (from 2012)
Oil pipeline owned

by DONG Energy Electricity distribution Gas and electricity sales
Gas storage facility

Gas distribution
Sales and distribution of electricity and gas, TWh
REVENUE Gas sales Electricity sales
DKK 13.0BN Electricity distribution Gas distribution
25
Elsalg
20 Gassalg
18%
Eldistribu
15 Gasdistri
10
5
EBITDA
DKK 2.0BN 0
2009 2010 2011
Gas sales by country in 2011 Electricity sales by country in 2011
15% 16% 9% 8%
Holland markedsvilkår
20.3 38% 51%

7.6
DK markedsvilkår 41%
EMPLOYEES (FTE) 37% TWh TWh

DK forsyningspligt
1,409
Denmark (public regulation) Denmark (public regulation)
23% Denmark (market terms)

The Netherlands (market terms)
Sweden (market terms)
Denmark (market terms)
The Netherlands (market terms)

Financial performance
CONSOLIDATED RESULTS
DONG Energy’s revenue for 2011 was 4% ahead of 2010.

EBITDA was largely in line with 2010, matching the outlook
BUSINESS PERFORMANCE
in the 2010 annual report. Operating cash flows were down,
primarily reflecting an increase in tax paid in Norway.
As described on pages 33 and 34, DONG
Energy introduced a new business performance
income statement in 2011. Unless otherwise DKK million 2011 2010 ∆
stated, the financial results in this review are
based on that. Comments to the balance sheet Revenue 56,842 54,616 2,226
are based on the IFRS consolidated balance
EBITDA 13,770 14,135 (365)
sheet. The business performance results have
Cash flows
been adjusted for temporary fluctuations in
from operating
the market value of contracts, including hedg-
activities 12,624 14,214 (1,590)
ing transactions, relating to other periods and
therefore represent the underlying financial
performance of the Group in the reporting
The results for 2011 were affected by falling earnings in
period.
Energy Markets due to a lower margin on gas sales, despite
a positive effect from renegotiation of gas contracts. Explo-
RESULTS FOR THE YEAR DETERMINED ration & Production, on the other hand, had a positive ef-
IN ACCORDANCE WITH IFRS fect on the results due to higher production and energy
prices, which were at a significantly higher level, through-
EBITDA for the year determined in accordance out 2011, than in 2010.
with IFRS was DKK 15.6 billion versus DKK 14.1
billion in 2010. As described on page 33, with Market prices
effect from 1 January 2011, DONG Energy dis- Oil and gas prices
continued the application of the provisions on
The oil price was 40% higher, on average, than in 2010,
cash flow hedge accounting for commodities
peaking in spring, when the market was affected by the un-
and related currency exposures. Unlike 2010,
rest in the Middle East and North Africa, including the
the results for 2011 determined in accordance
with IFRS were therefore affected by unrealised halting of production in Libya. Higher demand from emerg-
market value adjustments on such transactions. ing markets, including India and China, helped prop up the
As the IFRS results for the two years are there- oil price.
fore not comparable, no further comments will The gas price remained relatively stable during the
be made on the IFRS results. year, with monthly average prices of EUR 22-23/MWh, and
was 31% higher, on average, than in 2010. The gas price
Oil, USD/bbl Spread, gas hub price

vs. oil-indexed gas price, EUR/MWh
Oil (Brent) Spread, gas hub price TTF vs. oil-indexed gas price BAFA
125 2
120 Olie (Brent) Gasbørspris
115 0
110
105
-2
100
95
-4
90
85
80 -6
75
70 -8
2010 2011 2010 2011
Source: Calculated by DONG Energy on the basis of input from Argus and BAFA

GLOSSARY
Reference is made to the glossary on
pages 127-128 for definitions of terms.
Monthly average 2011 2010 ∆ with a high hydrological balance and a mild, wet autumn
and winter. Consequently, electricity prices were relatively
Oil, Brent USD/bbl 111 80 40% high at the start of the year, following which they dropped
Gas, TTF EUR/MWh 23 17 31% to a lower level.
Gas, NBP EUR/MWh 22 17 31% Due to the high hydrological balance of almost 10 TWh
Gas/oil spread EUR/MWh (3.2) (3.5) 9% above the normal level, the Nord Pool electricity price was
significantly lower than the German EEX electricity price
Electricity,
Nord Pool system EUR/MWh 47 53 (11%) from September, helping drive Danish electricity prices
down. At the same time, higher electricity generation from
Electricity, Nord
Pool, DK avg. EUR/MWh 49 52 (6%) wind farms in the North Sea put downward pressure on
and led to higher fluctuations in the electricity price.
Electricity, EEX EUR/MWh 51 44 15%
The green dark spread in Denmark showed a downward
Green dark
trend throughout 2011, from approx. EUR 7/MWh at the
spread, DK 1 EUR/MWh 5 14 15%
start of the year to around EUR 0/MWh in autumn, after
Source: Nord Pool, EEX, Platts, Argus and BAFA. which it increased slightly again. The sharp decrease in the
1
Based on average prices in DK1 and DK2. CO2 price from the middle of the year had a positive effect
on the spread at the end of 2011. It averaged EUR 5/MWh,
was being sustained by the indirect effects of the earth- EUR 9/MWh less than in 2010.
quake in Japan, including the phasing out of nuclear
Hydrological balance, TWh
power stations in Germany, and the interruption of gas
production in Libya. The European natural gas markets 2010 2011 Median 2003-2010
were generally well supplied in 2011, which was part of the Range 2003-2010
reason why gas hub prices remained significantly lower 20

than the oil-indexed gas prices. This price spread had an 2010
10
adverse effect on earnings from gas trading. By contrast, 2011
0
the rising oil and gas prices had a positive effect on Median 2
-10
earnings from oil and gas production.
-20
Electricity prices and green dark spread -30
The average electricity price in the two Danish price areas, -40
DK1 and DK2, was EUR 49/MWh in 2011, a decrease of 6% -50

Q1 Q2 Q3 Q4
on 2010. The hydrological balance was low at the start of
2011, and the year began with a cold, dry winter. It ended Source: SKM Market Predictor
Gas, EUR/MWh Electricity and green dark spread (GDS), EUR/MWh
Gas (TTF) Gas (NBP) Electricity (Nord Pool, DK) GDS (Nord Pool, DK)
26 80
70 Gas (NBP) GDS (Nord P
24
22
60 Gas (TTF) El (Nord Poo
50
20
40
18
30
16
20
14 10
12 0
10 -10
2010 2011 2010 2011
Source: Argus Source: Nord Pool, Argus and ECX

Revenue power stations outside Denmark that became opera-
tional at the end of 2010 and higher sales of system ser-
DKK million 2011 2010 ∆ vices, etc., was partly offset by lower electricity and heat
generation in Denmark due to milder weather and a sig-
Revenue 56,842 54,616 2,226 nificantly lower green dark spread
• in Energy Markets, EBITDA was down DKK 1.0 billion at
DKK 2.0 billion, primarily reflecting lower earnings from
Revenue was DKK 56.8 billion in 2011, up from DKK 54.6 gas sales under fixed-price and oil-indexed contracts.
billion in 2010. The 4% increase reflected higher oil and Renegotiation of gas contracts had a significant positive
gas production and higher energy prices. effect of around DKK 1 billion in 2011. The new gas-fired
Oil and gas production was 26.4 million boe, up from power stations adversely affected EBITDA due to low
24.4 million boe in 2010, primarily reflecting the start-up of green spark spreads. The effect on consolidated EBITDA
production at Trym and higher production from Ormen from the new gas-fired power stations was neutral
Lange. • in Sales & Distribution, EBITDA remained unchanged at
Electricity generation was 20.3 TWh, in line with 2010. DKK 2.0 billion. Lower revenue from gas sales was offset
Generation benefited from higher generation from the gas- by a lower cost level.
fired Severn power station in the UK, which was brought
fully on stream at the end of 2010, higher generation from Depreciation, amortisation, impairment
wind farms becoming operational in 2010, and generation
losses and EBIT
from new wind farms in 2011. By contrast, thermal electric-
ity and heat generation in Denmark decreased due to
DKK million 2011 2010 ∆
milder weather in the first quarter of 2011 compared with
the same period in 2010.
Depreciation, amor-
Gas sales (excluding own consumption at power stations) tisation and impair-
were up 7% at 115.6 TWh in 2011, mainly reflecting higher ment losses 7,670 6,015 1,655
gas hub sales. The increase was partly offset by lower whole- EBIT 6,100 8,120 (2,020)
sale sales in Sweden due to expired contracts and lower sales
in the Danish market due to a lower market share.
Depreciation, amortisation and impairment losses
EBITDA amounted to DKK 7.7 billion, an increase of DKK 1.7 billion
on 2010. The increase reflected new assets in operation and
DKK million 2011 2010 ∆ higher impairment losses. The impairment losses in 2011
were made up of DKK 0.6 billion on the offshore gas pipe-
Exploration & lines from the North Sea to Denmark due to an officially in-
Production 5,684 5,051 633 stigated transmission tariff reduction and DKK 0.3 billion on
Wind Power 1,799 1,730 69 goodwill due to changed pricing in the Dutch market.
Thermal Power 2,255 2,228 27 EBIT was consequently DKK 6.1 billion compared with
Energy Markets 1,963 2,959 (996) DKK 8.1 billion in 2010. The DKK 2.0 billion decrease was
made up of a DKK 0.3 billion decrease in EBITDA and, as
Sales &
Distribution 2,027 2,036 (9) mentioned above, a DKK 1.7 billion increase in deprecia-
tion, amortisation and impairment losses.
Other activities/
eliminations 42 131 (89)
Gain (loss) on disposal of enterprises
Consolidated Disposals of enterprises generated a gain of DKK 0.2 bil-
EBITDA 13,770 14,135 (365) lion against DKK 0.9 billion in 2010 and related mainly to a
purchase price adjustment from the sale of the Spanish
and Portuguese wind activities (Energi E2 Renewables
EBITDA was DKK 13.8 billion in 2011 against DKK 14.1 bil- Ibericas S.L.) in 2007.
lion in 2010. The decrease of 3% can be broken down by
business area as follows: Net finance costs
• in Exploration & Production, EBITDA was up DKK 0.6
billion at DKK 5.7 billion due to higher oil and gas prices DKK million 2011 2010 ∆
and higher production, partly offset by higher costs for
exploration and for repair of the Siri platform Interest expense, net (642) (1,218) 576
• in Wind Power, EBITDA was DKK 0.1 billion ahead at Interest element of
DKK 1.8 billion in 2011, driven by higher revenue, decommissioning
whereas higher costs due to higher operating activity obligations (176) (196) 20
and development of the business area had an adverse Other, net 536 (181) 717
impact on EBITDA
• in Thermal Power, EBITDA was DKK 2.3 billion, in line Net finance costs (282) (1,595 ) 1,313
with 2010. The positive effect from the new gas-fired

Net finance costs amounted to DKK 0.3 billion compared Cash flows from operating activities
with DKK 1.6 billion in 2010. Net interest expense was cut
by half to DKK 0.6 billion in 2011, reflecting partly the DKK million 2011 2010 ∆
falling interest rate level, which led to lower interest ex-
pense as a large proportion of the loan portfolio was con- Cash flows from
verted to floating-rate loans through 2011, and partly operating activities 12,624 14,214 (1,590)
higher interest income from business partners and a fi-

nance lease. The conversion of the loan portfolio has now Cash inflow from operating activities decreased by DKK 1.6
been terminated against the background of the falling in- billion to DKK 12.6 billion in 2011, principally due to an in-
terest rate level, and the loan portfolio now again consists crease in tax paid in Norway. Having the opposite effect
primarily of fixed-interest rate loans. were lower paid net finance costs and realised gains on
Other finance costs amounted to income of DKK 0.5 bil- hedging of net investments in foreign subsidiaries com-
lion net and related partly to positive capital gains on the pared with a realised loss in 2010.
bond portfolio due to the falling interest rate level, and
partly to foreign exchange adjustments related to rising Investments
USD and GBP exchange rates in the second half. This had a
positive net effect on cash and cash equivalents, margin ac- DKK million 2011 2010 ∆
counts, receivables and trade payables.
Gross investments (18,451) (15,692) (2,759)
Income tax Disposals of
Tax on profit for the year was an expense of DKK 3.2 billion assets and
versus DKK 3.0 billion in 2010. The tax rate was 53% enterprises 1,981 3,217 (1,236)
against 40% in 2010. The increase mainly reflected the fact Transactions with
that earnings in Norway, where hydrocarbon income is non-controlling
interests 3,410 3,945 (535)
taxed at 78%, represented a larger portion of total earn-
ings than in 2010.
Net investments (13,060) (8,530) (4,530)
Total tax contribution For a more detailed breakdown of investments, reference is made to the
DONG Energy’s contribution to society in the form of direct statement of cash flows on page 67.
and indirect taxes relating to its activities has been deter-
mined using (TTC-model)
Total taxes the TCC (Total Tax Contribution) model. Net investments were DKK 13.1 billion against DKK 8.5 bil-
lion in 2010 and consisted of gross investments of DKK 18.5
10%
Energy taxes, etc. billionSelskabsskat
and sale of assets and companies and transactions
1%
8% VAT, etc. with non-controlling
Ejendomsskatter mv. interests amounting to DKK 5.4 billion.
59%
PAYE tax, etc. The main gross investments in new activities, expan-
17.6 Indeholdt a-skat mv.
22% DKK billion Property taxes, etc. sion ofMoms existing

mv. areas of activity and efficiency improve-
Income tax mentEnergi
and renewal of existing facilities in 2011 were:
afgifter mv.
• expansion of wind activities (DKK 10.9 billion), including

the UK offshore wind farms Walney (DKK 4.8 billion),
The total contribution to society for 2011 was DKK 17.6 bil- London Array (DKK 3.6 billion) and Lincs (DKK 0.9 bil-
lion, of which 94% (DKK 16.6 billion) accrued to the Dan- lion), the Danish offshore wind farm Anholt (DKK 0.2 bil-
ish State in the form of direct taxes, energy taxes, value lion) and the German offshore wind farm Borkum
added tax, PAYE tax, etc. Riffgrund 1 (DKK 0.2 billion)
• development of oil and gas fields and infrastructure (DKK
Profit for the year and dividends 5.6 billion), including the Norwegian gas fields Oselvar
(DKK 1.0 billion), Marulk (DKK 0.5 billion), Ormen Lange
DKK million 2011 2010 ∆ (DKK 0.5 billion) and Trym (DKK 0.4 billion), UK Laggan-
Tormore (DKK 0.9 billion) and the Syd Arne field in Den-
Profit for the year 2,882 4,499 (1,617) mark, primarily from phase three (DKK 0.7 billion)
• thermal activities (DKK 0.7 billion), including the con-
Profit for the year was DKK 2.9 billion, down DKK 1.6 billion struction of the gas-fired Enecogen power station in the
on 2010, primarily reflecting a lower gain on disposal of en- Netherlands (DKK 0.4 billion)
terprises and an increase in tax paid in Norway. • underground installation of power cables in North Zea-
The Board of Directors will recommend at the AGM that land and other capital expenditure in the electricity
a dividend of DKK 4.96 per share be paid for 2011 (2010: distribution network in Denmark (DKK 0.5 billion)
DKK 7.50 per share). This provides dividend of DKK 1.5 bil- Disposals represented mainly transmission assets related
lion (2010: DKK 2.2 billion), equivalent to 60% of profit for to the Barrow, Walney 1 and Gunfleet Sands wind farms
the year, less coupon after tax to hybrid capital holders and and transactions with non-controlling interests, including
non-controlling interests’ share of profit for the year. the disposal of 49.9% of Gunfleet Sands, capital contribu-
tions in respect of Walney and an adjustment to the selling
price for accounting purposes of Walney.

Cash flows from financing activities Return on capital employed (ROCE)
DKK million 2011 2010 ∆ DKK million 2011 2010
Cash flows from Operating profit (EBIT) 6,100 8,120

financing activities 4,918 1,122 3,796
Share of profit of associates 36 77
Hydrocarbon tax (1,516) (1,017)
Cash flows from financing activities were DKK 4.9 billion
Interest element of
compared with DKK 1.1 billion in 2010. The positive effect decommissioning obligations (176) (196)
was primarily attributable to transactions with non-con-
trolling interests (including a reduction in interest-bearing Adjusted operating profit 4,444 6,985
balances from previous years) of DKK 3.9 billion. To this
should be added a net effect from the issuing and partial Non-interest-bearing assets 136,728 121,082
repurchase of hybrid capital in January 2011 of DKK 1.3 bil-
Non-interest-bearing liabilities (55,373) (47,634)
lion and the raising of DKK 1.5 billion short-term debt (repo
transactions) and DKK 1.0 billion long-term debt for partial
Capital employed 81,355 73,448
financing of the Danish offshore wind farm Anholt.
Dividend paid to shareholders was DKK 2.2 billion and Property, plant and equipment under
construction (23,037) (19,145)
coupon to hybrid capital holders DKK 0.5 billion.
Exploration assets (1,611) (975)
Balance sheet Production assets transferred from

property, plant and equipment under
DKK million 2011 2010 ∆ construction in the past six months (6,517) (7,022)
Assets 154,073 137,339 16,734 Adjusted capital employed 50,190 46,306
Interest-bearing Return on capital employed (ROCE), % 5.7 9.6

net debt 23,615 22,139 1,476 Adjusted return on capital employed, % 9.2 15.1
Equity 57,740 51,308 6,432
The return on capital employed was 5.7% in 2011 versus

The balance sheet total increased by DKK 16.7 billion to 9.6% in 2010, while the adjusted return on capital em-
DKK 154.1 billion at the end of 2011. The increase primarily ployed was 9.2% in 2011 versus 15.1% in 2010. The return
reflected DONG Energy’s continued investment activities on capital employed is calculated on the basis of operating
in wind farms and oil and gas fields. assets, defined as non-interest-bearing net assets. Adjusted
Net interest-bearing debt increased by DKK 1.5 billion return on capital employed has been calculated by also de-
only, amounting to DKK 23.6 billion at the end of 2011, as ducting the cost of assets under construction and explora-
cash outflow from investing activities was largely financed by tion assets as well as production assets transferred from as-
cash inflow from operating activities and disposals. sets under construction in the six months preceding the
Equity increased by DKK 6.4 billion, standing at DKK 57.7 balance sheet date. The reason for this is to take account of
billion at the end of 2011. The increase was primarily driven by the fact that earnings are limited during the start-up phase
profit for the year of DKK 2.9 billion, the issuing of hybrid cap- in connection with the start-up of operation of an asset.
ital in January 2011 with a net effect of DKK 1.3 billion and
transactions with non-controlling interests amounting to DKK Capital structure
4.0 billion, while dividend paid and coupon payments to hy- Adjusted net debt amounted to 2.0 times cash flows from
brid capital holders had an adverse effect on equity. operating activities at the end of 2011. This was on a par with
2010 and significantly below the target of adjusted net debt
not exceeding 3.0 times cash flows from operating activities.
The financial key ratio for capital structure will be
changed, from and including 2012, with EBITDA replacing
cash flows from operating activities in the denominator.
The change is being made to link the capital structure tar-
get to EBITDA, which is DONG Energy’s overall perfor-
mance measure, and which, following the introduction of
business performance results, better represents the
Group’s underlying financial performance. This financial
key ratio stood at 1.9 times at the end of 2011, which was
also on a par with 2010.
Further information on the capital structure can be
found in the chapter Financial outlook for 2012.

New presentation of profit for the year value of contracts, including hedging transactions that are
focusing on business performance deferred to the period in which they are to be recognised, are
shown as an adjustment between the performance meas-
DONG Energy has expanded its business activities in sev- ures. These adjustments will accumulate to nil over time.
eral energy markets in recent years. As a result, the Group The accounting treatment of trading activities remains
has adopted a more active risk management approach in unchanged compared with previous periods so that market
some areas in order to enhance value creation and create a value adjustments of these transactions are recognised in
greater degree of certainty with respect to the Group’s fi- the period in which the change in value occurs and with the
nancial position. same effect on the IFRS and business performance results.
This is achieved by hedging all or part of the value of Unless otherwise stated, Management’s review com-
the Group’s production and purchases and sales of energy ments on the business performance results.
to avoid performance being affected by unfavourable
movements in market prices. Physical electricity and gas contracts
As a hedging instrument that precisely matches the un- As part of its overall risk management, the Group enters
derlying commercial exposure (production or trading) or is into fixed-price contracts on purchase and sale of physical
sufficiently liquid is not always available, the Group uses electricity and gas on exchanges and hubs with a view to
approximation hedging, to some extent, i.e. hedging in al- mitigate risk related to future settlement prices. The Group
ternative markets or with different time frames. For exam- also enters into fixed-price contracts with customers in the
ple, Danish electricity generation is, to some extent, course of its commercial activities.
hedged using financial contracts for the EEX and Nord Pool Under IFRS, these contracts must, as a rule, be classi-
areas, as these prices normally move uniformly over time. fied as financial contracts with continuous market value ad-
Accordingly, only a portion of the Group’s economic justment in the income statement, if a liquid market exists
hedging meets the IFRS criteria for cash flow hedge ac- in which the underlying commercial exposure (production,
counting, even though they have been entered into pre- purchase or sale) can be traded. If this is not the case, the
cisely for this purpose. If the criteria are not satisfied, the financial effect of the contracts will not be recognised until
hedging transactions must be market value adjusted on a the reporting period in which the commercial exposure is
continuous basis, which may give rise to large fluctuations realised (accrual accounting).
in the income statement, regardless of the fact that the Physical fixed-price electricity and gas contracts will, in
hedging transactions have reduced the financial risk. future, be recognised in the business performance results in
With effect from 1 January 2011, the Group therefore the period in which the hedged exposure is realised, regard-
changed the way in which it accounts for derivative finan- less of whether the market is liquid or illiquid.
cial instruments used to hedge future cash flows relating As the Group’s risk management comprises both finan-
to commodities and related currency exposures, so that cial and physical fixed-price contracts, these are reported
these are no longer classified as hedge accounting. on collectively as hedging transactions.
Instead, an alternative performance measure, business
performance, has been introduced to ensure greater trans- Difference in EBITDA for 2011 between
parency in the financial reporting. In the income state- business performance and IFRS
ment, the business performance results are shown in con- The difference between the business performance and
nection with the results determined in accordance with IFRS results affects both revenue and cost of sales. In 2011,
IFRS. The difference between the two performance the difference in EBITDA was DKK 1.8 billion.
measures is shown as adjustments.
EBITDA, DKK million 2011
Connection between these performance measures
The business performance results reflect the internal Business performance 13,770
management of the Group. The results have been adjusted
Initial recognition of certain physical fixed-
for temporary fluctuations in the market value of contracts, price electricity and gas contracts for delivery
including hedging transactions relating to other periods. in other periods (1,817)
The financial effect of this hedging is therefore recognised Market value adjustments for the period of
in the income statement in the same period as the hedged financial and physical hedging contracts
commercial exposure. This way, the business performance relating to other periods 3,267
income statement better represents the underlying finan- Deferred losses/gains relating to financial and
cial performance of the Group during the period. physical hedging contracts where the hedged
In future, hedging transactions relating to the commer- production or trading is recognised in the pe-
riod under review 375
cial exposures referred to above will be recognised at fair
value with value adjustment via the income statement in Total adjustments 1,825
the IFRS financial statements, regardless of the period to Of which recognised in revenue 1,595
which they relate. As DONG Energy enters into hedging
transactions with terms of up to five years, this may have a IFRS 15,595
major impact on the results for individual reporting periods.
The timing differences relating to movements in the market

A large portion of the difference was due to the discontinu- The positive market value adjustment related primarily to a
ation of hedge accounting for commodities and related positive effect from hedging of electricity and gas at higher
currency exposures and initial recognition of certain fixed- prices and USD at a lower exchange rate than the respec-
price contracts. This part of the difference would conse- tive market prices at 31 December 2011.
quently not have arisen if the existing classification had A large portion of the market value adjustment in the
been retained. IFRS results reflected the discontinuation of hedge ac-
counting for commodities and related exposures as well as
Initial recognition of certain contracts initial recognition of certain fixed-price contracts, and
Based on the development in the European energy mar- therefore would not have affected the income statement if
kets, including increased liquidity and trading in the mar- the existing classification had been retained.
kets, certain physical electricity and gas contracts that
have not previously been fair value adjusted in the finan- Deferred losses/gains
cial statements are now classified as financial contracts. Lastly, deferred losses and gains on financial and physical
The market value of these contracts at 1 January 2011 was hedging transactions from previous periods have been
therefore recognised in the income statement in the IFRS recognised where the commercial exposure (production,
financial statements. purchase or sale) has been recognised in 2011.
As these contracts had not been realised at the start of The positive effect of DKK 0.4 billion reflected a loss in
the year, and therefore should not affect the business per- the IFRS results in previous years that is to be recognised
formance results, they were recognised in the adjustment as a loss in the business performance results in 2011.
between the two performance measures and will continue The loss for recognition in the business performance re-
to be recognised in this adjustment until they are realised. sults related primarily to higher electricity prices in 2011
The market value of these contracts was negative with than at the dates of the hedging. The loss were partly offset
DKK 1.8 billion at 1 January 2011. The contracts related pri- by a gain on gas hedging.
marily to net forward sales of gas on the Dutch TTF gas
hub at fixed prices with a view to reducing the Group’s ex- Cash flows and equity
posure to the price development and electricity sales in The new presentation of the results has not had any effect
Denmark at fixed prices at auction (terms of up to three on the Group’s cash flows from operating activities. It has
years). These sales form an integral part of the hedging of simply resulted in a redistribution between the “EBITDA”
the Danish thermal electricity generation. and “other adjustments” items, equivalent to the difference
The negative market value reflected the fact that the between the market value adjustments.
electricity and gas were sold at prices below the forward The new presentation has not had any effect on the
prices at the start of 2011. Group’s total equity.
Market value adjustments relating to other periods

The IFRS results include a DKK 3.3 billion market value ad-
justment of financial and physical hedging contracts, as the
value of these hedging transactions is not to be recognised in
the business performance results until subsequent periods.

Non-financial performance
The Group’s non-financial performance highlights are set Health and safety
out on page 6 and commented on here and on page
7. For a detailed description, reference is made to the 2011 2010
Group’s verified GRI reporting and the responsibility part
of dongenergy.com. Lost time injuries number 74 93
Lost time injury per one million
Environment frequency (LTIF) hours worked 4.1 4.6
Fatalities number 3 3
2011 2010
million Health and safety factors form part of the ambition to

EU ETS CO2 emissions tonnes 10.8 11.8 operate the company responsibly and have committed and
CO2 emissions per energy highly skilled employees.
unit generated There were 74 lost time injuries in 2011, including 40
(electricity and heat) g/kWh 486 524
among suppliers. Converted to lost time injuries per one
Green proportion of electri- million hours worked (LTIF), the total number of injuries at
city and heat generation % 29 30
DONG Energy and the Group’s suppliers fell from 4.6 in
2010 to 4.1 in 2011, the lowest ever in DONG Energy’s his-
Power station EU ETS CO2 emissions totalled 10.8 million tory. The injury frequency target set for 2011 was 5.2. For
tonnes in 2011 compared with 11.8 million tonnes in 2010. 2012, the target has been tightened to 4.1, equivalent to
In 2011, the downward trend in CO2 emissions per kWh the level achieved in 2011.
generated continued as a result of lower consumption of In 2011, there were two tragic incidents in which three
coal and increased wind generation. CO2 emissions per persons lost their lives. Onboard a coal tanker, two persons
electricity and gas energy unit generated were 486 g/kWh died when they entered an area below deck where there
in 2011 against 524 g/kWh in 2010. was no oxygen. At a construction site, a subcontractor em-
Green electricity and heat generation accounted for 29% ployee died during a fire in a tower. DONG Energy takes
versus 30% in 2010. The marginal decline was due to higher these accidents very seriously and has stepped up preven-
generation from new gas-fired power stations, which was tive action.
only partly offset by higher generation from wind farms. In 2011, the Group continued its efforts to develop a
strong safety culture focusing on risk assessment and pro-
active prevention as well as follow-up on all incidents to
continuously improve safety performance at both DONG
Energy and its contractors and partners.

Performance EBIT increased by DKK 0.6 billion to DKK 5.7 billion in
REVIEW OF BUSINESS AREAS’ PERFORMANCE
2011, primarily due to the increase in revenue, which was
The financial and environmental performance of each of partly offset by higher exploration costs. Costs for the re-
the Group’s five business areas in 2011 is commented on in pair of the subsea structure at the Siri platform were
the following. DKK 0.8 billion in 2011, of which DKK 0.6 billion related to
the permanent repair solution. The repair work on the Siri
Exploration & Production platform is expected to be completed in 2013.
EBIT was up DKK 0.1 billion on 2010, which was less
Performance highlights 2011 2010 than the increase in EBITDA as a result of higher deprecia-
tion in Norway, primarily reflecting the start-up of produc-
Volumes tion at Trym.
Oil and gas production million boe 26.4 24.4
- oil million boe 9.3 9.0 Environment
Discharges of oil to sea together with produced water
- gas million boe 17.1 15.4
from the oil and gas exploration activities amounted to
16 tonnes in 2011 against 8 tonnes in 2010. The increase
Revenue DKK million 10,469 8,264 mainly reflected significantly higher volumes of produced
EBITDA DKK million 5,684 5,051 water at the older Norwegian fields Ula and Gyda, as a
EBITDA adjusted natural outcome of their production patterns.
for hydrocarbon tax DKK million 4,208 4,085 On the Siri platform, which is operated by DONG
EBIT DKK million 3,204 3,101 Energy, 2.2 tonnes of oil was discharged, compared with
2.7 tonnes in 2010. The reduction primarily reflected an
Adjusted operating
profit DKK million 1,628 2,036 unchanged cleaning efficiency and increased reinjection of
produced water into the reservoir.
Gross investments DKK million (5,626) (4,023)
Reinjection of oil-containing produced water was reduced to
Capital employed
68%, overall, compared with 78% in 2010, while reinjection
Capital employed DKK million 18,186 17,122 from the Siri platform improved from 94% to 97% in 2011.
PPE under construction DKK million (8,381) (6,357) DONG Energy’s share of gas flaring on the Siri platform
Exploration assets DKK million (1,611) (975) was 3 million Nm3 in 2011, matching the 2009 level, which
led to a decrease in EU ETS CO2 emissions. The unusually
Production assets
transferred from PPE high level of gas flaring on the Siri platform in 2010, 29
under construction in million Nm3, was due to challenges related to treatment of
the past six months DKK million (335) (417) the gas from the new satellite platform Nini Øst, which is
Adjusted capital connected to the Siri platform.
employed DKK million 7,859 9,373
Environment Wind Power
EU ETS CO2 million
emissions tonnes 0.1 0.1 Performance highlights 2011 2010
Gas flaring million Nm3 8 32
Volumes
Oil discharged to sea tonnes 16 8
Electricity generation,
Reinjection of wind and hydro TWh 4.4 4.0
produced water on
production platforms % 68 78 Financial performance
Revenue DKK million 4,312 2,952
EBITDA DKK million 1,799 1,730
Volumes
EBIT DKK million 856 959
Oil and gas production was up 8% at 26.4 million boe in 2011.
Oil production was 3% ahead at 9.3 million boe, pri- Adjusted operating
profit DKK million 861 979
marily due to the start-up of production at the Trym oil and
gas field. Production from Siri was lower due its periodical Gross investments DKK million (10,872) (6,378)
closure as a result of tightened safety precautions while the Capital employed
platform is being repaired. Capital employed DKK million 29,443 21,097
Gas production, which came primarily from the Ormen
PPE under construction DKK million (13,859) (7,483)
Lange field in Norway, rose by 11% to 17.1 million boe in 2011,
Production assets
representing 65% of total production. 18% of production
transferred from PPE
came from Danish fields and 82% from Norwegian fields. under construction in
the past six months DKK million (1,851) (792)
Financial performance Adjusted capital
Revenue was DKK 10.5 billion, DKK 2.2 billion ahead of employed DKK million 13,733 12,822
2010. Revenue benefited from the higher oil and gas prices
and higher production. Oil price hedging had a negative
impact due to the higher oil prices.

Volumes Thermal Power
Generation from wind and hydro was 11% ahead at 4.4
TWh in 2011. Generation from offshore wind farms in- Performance highlights 2011 2010
creased due to the start-up of production at Walney 1, more
turbines in operation at Gunfleet Sands and higher output Volumes
from Horns Rev 2. Generation from onshore wind farms in Electricity generation,
Poland and Denmark also increased, while hydro output in thermal TWh 12.6 15.3
Sweden was less than in 2010. Heat generation PJ 42.6 53.2
Generation from wind and hydro represented 22% of
the Group’s overall electricity generation in 2011 compared
with 20% in 2010.
Financial performance EBIT DKK million 752 557
Revenue was up DKK 1.4 billion at DKK 4.3 billion in 2011. Adjusted operating
Around 2/3 of revenue came from government revenue profit DKK million 720 511
schemes, the key elements of which were fixed tariffs (pri- Gross investments DKK million (714) (3,853)
marily Denmark) and guaranteed minimum prices for
Capital employed
green certificates (primarily the UK). The rest of revenue in
Capital employed DKK million 17,882 19,085
2011 was sold at market prices, but as a large portion had
been hedged at fixed prices, the development in the elec- PPE under construction DKK million (214) (3,596)
tricity price only had limited effect on revenue. Production assets

EBITDA was DKK 0.1 billion ahead at DKK 1.8 billion in transferred from PPE
under construction in
2011, driven by higher revenue, whereas higher costs due
the past six months DKK million (3,883) (5,345)
to the higher operating activity and building up of the
Adjusted capital
business area had an adverse impact on EBITDA.
EBIT amounted to DKK 0.9 billion and was marginally
Environment
lower than in 2010, as the higher EBITDA was offset by
higher depreciation on the new wind farms. EU ETS CO2 million
emissions tonnes 9.5 11.1
Volumes
Both electricity and heat generation were lower in 2011
than the previous year due to a milder winter. Electricity
generation was thus 12.6 TWh, down 18% on 2010, while
heat generation was down 20% at 42.6 PJ.
Revenue 2011 EBITDA 2011
18% Exploration & Production 15% 41% Exploration & Production

14%
6% Wind Power Wind Power

Thermal Power 14% Thermal Power
56.8 15% 13.8
DKK billion Energy Markets DKK billion Energy Markets
Sales & Distribution Sales & Distribution
17%
47% 13%

Financial performance Energy Markets
REVIEW OF BUSINESS AREAS’ PERFORMANCE
Revenue was down DKK 1.1 billion at DKK 10.7 billion in
2011 due to lower electricity and heat generation and lower Performance highlights 2011 2010
electricity prices in Denmark. The decline was partly offset
by higher sales of system services etc. to Energinet.dk and Volumes
the full-year effect of the new gas-fired power stations in Gas sales TWh 122.3 118.5
the UK (Severn) and Norway (Mongstad), which became Electricity sales TWh 9.9 10.4
operational at the end of 2010.
Electricity generation,
EBITDA was DKK 2.3 billion in 2011, in line with 2010. thermal TWh 3.4 0.9
The new gas-fired power stations had a positive effect on
EBITDA, but this was offset by lower earnings from the
Danish power stations due to lower electricity and heat
generation and a significantly lower spread. EBITDA DKK million 1,963 2,959
EBIT increased by DKK 0.2 billion to DKK 0.8 billion in EBIT DKK million 778 2,394
2011. The improvement relative to EBITDA reflected impair- Adjusted operating
ment losses on small-scale power stations in 2010. profit DKK million 751 2,386
Gross investments DKK million (333) (477)
Environment
Capital employed
Danish power station EU ETS CO2 emissions totalled 9.5
million tonnes compared with 11.1 million tonnes in 2010.
The decline reflected lower generation. PPE under construction DKK million (133) (106)
There were four significant environmental incidents in Adjusted capital
2011. At Kyndby power station, there was an increased re- employed DKK million 6,420 4,221
lease of nitrogen after operating problems at the wastewater Environment
treatment plant. At Stigsnæs power station, there was a spill EU ETS CO2 million
of 8 m3 of fuel oil, partly onto soil and partly into a tank yard emissions tonnes 1.2 0.5
with a concrete base. In addition, there were two spills of Gas flaring million Nm3
1.0 1.0
significant volumes of oil onto soil from the oil storage tank
facility in Skælskør. In all cases, the cleaning up of the areas
were accepted by the environmental authorities. Volumes
Gas sales (incl. sales to own power stations) increased by 3%
to 122.3 TWh, reflecting significantly higher sales on hubs.
Wholesale sales were lower, on the other hand, primarily due
to milder weather than in 2010. This led to lower sales in Den-
mark, Sweden and Germany and to own power stations.
Electricity sales were 9.9 TWh, a decrease of 5% on
2010. Electricity generation from the gas-fired Severn
power station, which became operational in 2010,
amounted to 3.2 TWh in 2011. Both units were shut down
following damage to both turbines in July 2011. One unit

was brought back online in October 2011, while the other Volumes
unit is expected to be brought back online in the first half Gas sales were 20.3 TWh, down 16% on 2010, primarily
of 2012. Both units are running at reduced output until the reflecting the milder winter than in 2010 and growing com-
repairs have been completed. The gas-fired Enecogen petition in the Danish market, with a resulting decline in
power station in the Netherlands became operational at market share.
the end of 2011, generating 0.2 TWh. Gas distribution was also affected by the milder winter,
amounting to 9.9 TWh, a decrease of 13% on 2010.
Financial performance There was also a small decline in both distribution and
Revenue increased by DKK 2.2 billion to DKK 33.7 billion sales of electricity and in transportation in the oil pipeline
due to higher electricity generation and gas sales and compared with 2010.
higher gas sales prices than in 2010.
EBITDA was DKK 2.0 billion, DKK 1.0 billion down on Financial performance
2010, primarily reflecting lower earnings from gas sales un- Revenue was down DKK 1.2 billion, at DKK 13.0 billion, pri-
der fixed-priced and oil-indexed contracts than in 2010. marily reflecting lower gas volumes being sold due to in-
Renegotiation of gas contracts had a significant positive tensifying competition and milder weather in 2011 as well
effect of around DKK 1 billion in 2011, while the new gas- as a fall in payments recovered from consumers on behalf
fired power stations in the UK and the Netherlands de- of Energinet.dk. These collected payments have no EBITDA
pressed EBITDA due to the low green spark spreads. The effect.
consolidated EBITDA effect of the new gas-fired power sta- The lower revenue was offset by a lower cost level.
tions was neutral. EBITDA was consequently DKK 2.0 billion in 2011, the
EBIT was down DKK 1.6 billion at DKK 0.8 billion in 2011 same level as the previous year.
due to the lower EBITDA and a DKK 0.6 billion impairment EBIT was down DKK 0.5 billion, amounting to DKK 0.6
loss on offshore gas pipelines in the first half of 2011. billion in 2011. The decline primarily reflected a DKK 0.3
billion impairment loss on goodwill related to the Dutch
Environment sales subsidiary in 2011 due to changed pricing in the
EU ETS CO2 emissions rose compared with 2010, as 2011 was Dutch market.
the first full year of operation for the Severn power station. A
small portion of CO2 emissions was due to flaring at the Ny- Environment
bro gas treatment plant. This portion was in line with 2010. A significant environmental incident occurred in 2011 in
connection with the establishment of a motorway, when a
Sales & Distribution gas pipe suffered excavation damage by the contractor,
resulting in a leak of 36 thousand m3 of methane. After the
Performance highlights 2011 2010 fracture, the gas supply was shut off immediately to prevent
a major gas leak. Internal and external emergency plans
Volumes functioned as planned and the damage was rapidly repaired.
Gas sales TWh 20.3 24.2
Gas distribution TWh 9.9 11.4
Electricity sales TWh 7.6 8.2
Electricity distribution TWh 8.8 9.1
Oil transportation,
Denmark million bbl 72 78
EBIT DKK million 566 1,057
Adjusted operating
profit DKK million 584 1,072
Gross investments DKK million (810) (858)
Capital employed
PPE under construction DKK million (530) (507)
Production assets
transferred from PPE
under construction in
the past six months DKK million (447) (511)
Adjusted capital

External assumptions and Market prices
FINANCIAL OUTLOOK FOR 2012
market conditions Esti-
mate Actual
(average) 2012 2011
Europe is still affected by the economic crisis, not least by
the government debt crisis in Southern Europe. The future
Oil, Brent USD/bbl 105 111
price development and energy demand are therefore sub-
Gas, TTF EUR/MWh 23 23
ject to particular uncertainty.
Gas, NBP EUR/MWh 23 22
Market prices and hedging Electricity, Nord Pool

The movements in a variety of market prices, including oil, system EUR/MWh 37 47
gas, electricity, coal, CO2 and the USD and GBP exchange Electricity, Nord Pool, DK 1 EUR/MWh 46 49
rates, impact on DONG Energy’s financial performance. Electricity, EEX EUR/MWh 52 51
The profit outlook for 2012 is based on the average market Electricity, UK EUR/MWh 53 55
prices in the table.
Coal, API 2 USD/tonne 112 122
A large portion of market price exposure in 2012 has
CO2, EUA EUR/tonne 7.1 13.3
been hedged, which means that any deviations from as-
sumed prices will not filter through in full to financial per- Green dark spread, DK 1 EUR/MWh 8.2 5.0
formance. Price hedging of oil and gas is carried out after Green spark spread, UK EUR/MWh 4.6 7.8
adjustment for hydrocarbon taxation (primarily in Norway) Green spark spread, NL EUR/MWh 2.5 4.0
to achieve the desired cash flow effect after tax. As will be
USD exchange rate DKK/USD 5.7 5.4
seen from the table below, DONG Energy’s overall exposure
to changes in energy prices is limited from a short-term Source: Platts, Argus, Nord Pool, LEBA, ECX.
perspective. All other things being equal, a concurrent 10% 1
Based on average prices in DK1 and DK2.
increase in prices will change EBITDA by around DKK 0.8
billion in 2012. The corresponding change in EBITDA after
hydrocarbon taxation is around DKK 0.2 billion.
Hedging 2012
Hedging percentage
Before After 10% price increase

hydrocarbon tax hydrocarbon tax Avg. hedging price (DKK million)
Oil USD/bbl 10% 28% 86 276

Gas EUR/MWh 53% 91% 23 366
Thermal electricity generation
(GDS/GSS) EUR/MWh 56% 56% 10/6 38
Renewable generation, market
price share 1 EUR/MWh 32% 32% 61 82
1
Fixed tariffs and guaranteed minimum prices for green certificates account for approx. 2/3 of expected revenue from the wind power portfolio.
FORWARD-LOOKING STATEMENTS
The report contains forward-looking statements,

which include projections of financial perfor-
mance in 2012. These statements are not guaran-
tees of future performance and involve certain
risks and uncertainties. Therefore, actual future
results and trends may differ materially from what
is forecast in this report due to a variety of fac-
tors, including, but not limited to, changes in tem-
perature and precipitation levels; the develop-
ment in oil, gas, electricity, coal, CO2, currency
and interest rate markets; changes in legislation,
regulation or standards; changes in the competi-
tive environment in DONG Energy’s markets; and
security of supply. Reference is made to the chap-
ter on Risk and risk management, and notes 32
and 33 to the consolidated financial statements.

Further information on DONG Energy’s market risks and Target for capital structure
risk-mitigating initiatives are set out in the section on mar- From and including 2012, the long-term target for capital
ket and credit risks in the Risk and risk management chap- structure has been changed so that adjusted net debt must
ter on page 44. This section also explains the expected ef- not exceed 2.5 times EBITDA. The change of the denomi-
fect on the business performance results of financial and nator from cash flows from operating activities to EBITDA
physical hedging transactions where the effects on the re- is being made to link the capital structure objective to
sults are deferred to subsequent periods. EBITDA, which is DONG Energy’s overall performance
measure, and which, following the introduction of business
New activities and other assumptions performance income statement, better represents the
Compared with 2011, EBITDA in 2012 is expected to benefit Group’s underlying financial performance.
from new or significantly expanded activities. This will be
offset by increased costs for the repair work on the Siri Capital structure
platform, lower income in Thermal Power and the fact that,
Adjusted net debt/Cash flows Capital structure
in 2012, there will not be a positive effect from renegotia- from operating activities target 2011
tion of gas contracts. Adjusted net debt/ Capital structure
EBITDA target from 2012
EBITDA outlook for 2012 4

Based on the market price outlook referred to above and
price hedging and the described expectations concerning 3
new activities and other assumptions, business perfor- 2

mance EBITDA is expected to be in line with 2011.
1
Ebitda target 0
Based on planned investments, the target is still a 2007 2008 2009 2010 2011
doubling of EBITDA in the period up to 2015 compared
Adjusted net debt is defined as net debt for accounting purposes plus
with 2009, when EBITDA was DKK 8.8 billion. 50% of hybrid capital maturing in 3005.
EBITDA in 2013 is expected to be significantly ahead of
2012 due to the start-up of production of new assets. To
this should be added the full-year effect of new assets that
become operational in 2012.
Outlook for net investments

Net investments in the period 2011-13 are still expected to
be around DKK 40 billion, remaining unchanged from the
outlook in the 2010 annual report.

DONG Energy has set objectives for its financial management. The key
FinanCIAL OBJECTIVES
financial management objectives are described below
Rating Capital structure

Rating of minimum BBB+/Baa1 Adjusted net debt must not exceed 2.5 times EBITDA.
Capital structure
Standard & Poor's Moody's Adjusted net debt/Cash flows Capital structure
Financial objective from operating activities target 2011
Standard & Poor's Moody's Adjusted net debt/ Capital structure
Finansiel målsætning
Financial objective EBITDA target from 2012
A-/A3
Moody's målsætning
Finansiel Kap
4
BBB+/
A-/A3 Standard & Poor's
Moody's
Baa1 Kap
BBB+/
BBB/
Baa1
3 Standard & Poor's Jus
Baa2
BBB/
BBB-/
Baa2
2 Jus
Baa3
BBB-/
1
Baa3
2007 2008 2009 2010 2011
0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
Adjusted net debt is defined as net debt for accounting purposes plus
50% of hybrid capital maturing in 3005.
Doubling EBITDA, DKK billion Dividends, %

Doubling
Realised EBITDA, DKK billion Trend
Target Maximum payout ratio Actual payout ratio
Minimum payout ratio
Realised Target Trend
17.6
18
EBITDA
Likvider
16 17.6 70
18 13.8
14 Bindende lånefaciliteter
Likvider
EBITDA Maximum payo
16
12 13.8
14 60 Bindende lånefaciliteter Minimum payo
10 8.8
12 Actual payout-r
8
10 8.8 50
6
8
4
6
2 40
4
0
2 2009 1
2010 2011 2012 2013 2014 2015
30
0
2009 1
2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011
1
EBITDA for 2009 is based on the IFRS financial statements presented.
Proposed dividend for the year will be determined based

on the following principle:
• A fixed amount of DKK 7.75 per share (in 2011), which
will be increased by DKK 0.25 per year if the sharehold-
ers’ share of profit for the year after tax is within the
payout ratio range
• A payout ratio of minimum 40% and maximum 60% of
the shareholders’ share of the business performance re-
sults for the year after tax less coupon after tax to hy-
brid capital holders and the non-controlling interests’
share of profit for the year.

DONG Energy has a diversified loan portfolio, with the international bond
DONG Energy and the capital market

market as the primary source of funding
Label er
DONG Energy is a reputable player in the bond market Spread (credit margin) compared with swap rate Teksten
and engages in continuous dialogue with bond investors for selected bonds imellem
and bond analysts, for example via quarterly presenta- Bond maturity 2021 Bond maturity 2016
tions and roadshows. Bond maturity 2014

Basis points
160
Outstanding bonds Obligation
140
Principal 120
Obligation
Cur- amount Coupon Obligation
100
rency (million) (%) Maturity Listed in
80
Corporate bonds 60
40
EUR 500 3.500 29 Jun 2012 Luxembourg
20
EUR 500 4.875 7 May 2014 London 0
2010 2011
EUR 500 4.000 16 Dec 2016 London
EUR 500 6.500 7 May 2019 London
EUR 500 4.875 16 Dec 2021 London
Rating
GBP 1 750 4.875 12 Jan 2032 London
Standard & Poor's Moody's
GBP 500 5.750 9 Apr 2040 London
Hybrid bonds Company rating A- Baa1
EUR 600 5.500 Year 3005 Luxembourg Ordinary bonds A- Baa1
EUR 700 7.750 Year 3010 Luxembourg Hybrid bonds BBB og BB+ Baa3
Outlook Stable Stable

1
Issued in January 2012.
Latest rating report Dec 2011 Jan 2012
Significant financing activities in 2011
Date Activity
24 Jan Issuing of hybrid bonds and concurrent partial
repurchase of previously issued hybrid bonds
17 Aug Establishment of new EUR 1,300 million credit
facility
20 Sep Raising of loan from the Nordic Investment Bank
(EUR 240 million)
Financial calendar 2012 Contact
Date Activity Investor Relations: Morten H. Buchgreitz

E-mail: investorrelations@dongenergy.com
9 Mar Annual report 2011 Telephone: +45 99 55 97 50
18 Apr Annual General Meeting
11 May Interim financial report – Q1 2012 www.dongenergy.com/en/investor
10 Aug Interim financial report – H1 2012

1 Nov Interim financial report – 9M 2012

Risk is part of the business for DONG Energy.
RISK AND RISK MANAGEMENT
The Group works actively to balance these risks, BUSINESS PERFORMANCE
so that they either create value or are reduced Unless otherwise stated, Management’s
review comments on the business perfor-
mance results.
GLOSSARY
Reference is made to the glossary on
pages 127-128 for definitions of terms.
Risks are an integral part of DONG Energy’s business. partly because DONG Energy’s international growth will re-
Some market risks are managed with a view to striking the duce the relative importance of Danish energy markets.
right balance between value creation and associated risks. Material risks can be divided into four main categories
Here, movements in market prices can be an earnings op- and are, to some extent, interdependent. The Group identi-
portunity as well as a competitive parameter. As far as fies and prioritises its risks annually in a risk matrix on the
other risks such as environmental, safety and technical basis of materiality and probability.
risks are concerned, DONG Energy endeavours to com-
pletely eliminate these or, if this is not possible, to mitigate
them as far as possible. Risk matrix
High
Risk management
The objective of risk management is to ensure that the
risks that may affect implementation of strategy, including
Materiality
expected earnings, are identified, assessed and form an ac-

tive part of day-to-day decision-making process. This helps
underpin and optimise future value creation in accordance
with DONG Energy’s strategy. In the years to come, the
Low
strategy will contribute to diversifying the Group’s risks, Low Probability High
Selected material risks

Market and credit risks Regulatory risks Operational risks Staff and organisational risks
Energy price risks • Regulatory conditions • C onstruction and operation • E mployee safety
• Oil and gas price risks • Tax regimes of facilities • Attracting and retaining
• Price risks for thermal • Financial regulation • Subcontractors competent employees
electricity generation • Environment • Fraud
• Price risks for renewable • Contractual risks
generation • Partnerships
• Market trading • Changed demand side
characteristics
Financial risks • Extensive damage to prop-
• Currency risks erty
• Interest rate risks
• Liquidity and financing
risks
Credit risks
The highlighted risks are explained on the following pages.

Market and credit risks
The Group’s net exposure to market risks is illustrated be- DONG Energy’s principle for managing market risks is
low. In the long term, the Group’s market risks are deter- shown below. Where possible, all of the Group’s exposures
mined by its strategic choices and associated asset mix. from production and purchase and sales contracts within
DONG Energy mitigates its structural risks through, among the management time frame are combined in the activity
other things, its technical and geographical diversification Asset-backed optimisation, where they are consolidated
and the transition to greener electricity and heat genera- and optimised together. The consolidated exposure is then
tion, as described in the chapter Wind and biomass hedged via DONG Energy’s trading function (Market trad-
growth. Coupled with balancing of the oil and gas portfolio, ing), which trades exposures in the market within given
this provides a diversified portfolio of assets with different risk parameters.
risk profiles. Market risks can be divided into energy price risks and
To further reduce the fluctuations in the Group’s cash financial risks. Financial risks comprise currency risks, in-
flows in the short and medium terms, price hedging con- terest rate risks and liquidity and financing risks. Energy
tracts are entered into within the risk management time price risks are affected by fluctuations in the prices of oil,
frame (up to five years). At the short end of the time frame, gas, electricity, coal, CO2 and, to a lesser extent, other com-
we want a high level of hedging to achieve a high degree of modities. Part of the exposure depends on one specific
certainty with regard to cash flows, while the hedging level is price (direct price risks), while other parts depend on the
lower in subsequent years. This approach is chosen partly difference between two or more prices (spread risks). Mar-
because the underlying longer-term exposure is subject to ket price risk on direct price risks is higher than for spread-
greater uncertainty, and partly because the financial and based exposures as the prices of individual commodities
physical markets are less liquid in the longer term. are typically more volatile than the levels of wholly or partly
Overall, the diversification of the structural risk and man- correlated energy prices. The figure shows the exposure
agement of the Group’s cash flows in the short and medium values for 2012 before and after hedging.
terms has a positive effect on DONG Energy’s capital struc-
ture target, as the fluctuations in earnings from the different
activities are largely independent of each other and can there-
Exposure to energy prices in 2012, DKK billion
fore be assumed to balance each other out to some extent.
Commercial exposure Net exposure
Hedging strategy
6
Efter afdæ
High
5
Før afdæk
Hedging percentage
3 Husk kategorier i 3 dæk
Low 0
Up to 5 years Time Oil and gas Renewable generation Thermal electricity
generation
Risk management principle
Commercial activities Asset backed Market

optimisation trading
Purchase and production
• Oil and gas production • Managing contract • Efficient execution in
Execution in the market
Hedging of exposure
Transfer of exposure
• Long-term wholesale volumes and optimising the market within given

gas contracts contracts risk limits
• Thermal electricity • Optimising physical Market
generation and financial exposures counter-
• Renewable generation parties
Sale
• Retail customers
(gas and electricity)
• Wholesale customers
(gas and electricity)

Risk and risk policy Exposure and hedging
Oil and gas price risks

Oil and gas price risks come primarily from equity produc- Overall, DONG Energy’s oil and gas exposure consists of a
tion of oil and gas and from differences in the indexation long gas position (positive effect if prices rise) and a short
of sales and purchase prices for gas. oil position. As oil and gas prices have, historically, corre-
DONG Energy’s production of oil contributes to reduc- lated positively over long periods of time, the long gas ex-
ing its oil price exposure from oil price-indexed gas pur- posure will, to some extent, be offset by the short oil expo-
chase contracts. The integrated business model thus has sure, reducing the direct gas price exposure. The net oil
a stabilising effect on the company’s cash flows and over- and gas price exposure is treated as a spread risk.
all risk profile. In the very short term, the exposure profile may differ
The risk to future cash flows from oil and gas price po- from the normal profile. For example, this is the case for oil
sitions is managed with a time frame of five years based exposure in 2012, which is marginally long as the propor-
on a target for Cash-Flow-at-Risk. Oil and gas exposures tion of oil-indexed gas sales contracts that have been en-
are hedged after adjustment for hydrocarbon taxation to tered into is higher than normal.
achieve the desired cash flow effect after tax. At the end of 2011, 28% of the expected oil exposure
The oil and gas exposure profile is expected to change and 91% of the expected gas exposure for 2012 had been
in the years to come, primarily due to rising equity pro- hedged, equivalent to a total hedging percentage of 79%
duction of oil. DONG Energy will be affected financially for oil and gas.
when oil and gas price trends diverge in the short term In 2012, a 10% decrease in the price of oil and gas
(decouple), as was the case in 2009-2011. would reduce EBITDA after hydrocarbon tax by DKK 117
The long-term purchase and sales contracts contain million.
embedded options, for example in the form of volume
flexibility and renegotiation clauses that may alter DONG
Exposure profile for oil and gas in 2012, DKK billion
Energy’s risk profile in both the short and the long term.
Commercial exposure Net exposure
6
Efter afdæknin
5
Før afdækning
4
0
Oil Gas Oil and gas
Price risks for thermal electricity generation

The electricity price is determined by fuel prices, weather At the end of 2011, the price exposure relating to 56% of
conditions, prices for CO2 emissions allowances and expected generation in 2012 for Denmark, the Netherlands
general supply side and demand side characteristics. Risk and the UK had been hedged.
management of thermal electricity generation is based on
freezing the contribution margin for future electricity
generation by selling electricity and buying fuel and CO2. Exposure profile for thermal electricity generation in 2012,
The spread-based price exposure for the Danish and DKK billion
foreign electricity generation is managed with a time Commercial exposure Net exposure
frame of up to five years. The time frame reflects the given
liquidity conditions for trading in the forward market. 0.7
Efter afdæknin
The strategic measures involving adaptation of Danish 0.6
thermal electricity generation and the establishment of Før afdækning

0.5
new gas-fired power stations in the UK (Severn) and the 0.4
Netherlands (Enecogen) will, in the years to come, reduce
0.3
DONG Energy’s electricity exposure to Nord Pool from
0.2
67% of the value in 2007 to an expected 12% in 2015. This
0.1
will contribute to a more diversified position in the market.
0.0
Denmark UK and The Netherlands

Price risks for renewable generation

In connection with the development of renewable energy At the end of 2011, fixed tariffs and guaranteed minimum
sources, primarily offshore wind farms, a major part of prices for green certificates accounted for two-thirds of ex-
the earnings from wind power will come from regulated pected earnings from the wind power portfolio in 2012.
pricing. The most important elements are fixed tariffs Wind Power has hedged 32% of its market price expo-
(Denmark and Germany) and guaranteed minimum sure in 2012.
prices for green certificates (the UK and Poland). In 2012, a 10% decrease in the electricity price would
The market price risk for the wind power portfolio is lead to a DKK 82 million decrease in EBITDA.
treated as a direct price risk and managed with a time
frame of up to five years based on a target for Cash-Flow- Breakdown of income from wind farms in 2012
at-Risk.
27% Market prices
32%
Hedged portion
Certificates
Fixed tariffs
41%
Market trading
When the Group’s desired hedging level has been deter- The energy price exposure in market trading was DKK 2 bil-
mined, the exposures are transferred to the market trading lion at the end of 2011.
function, which is then responsible for executing the phys- The overall one-day 95% Value-at-Risk (VaR) was
ical and financial transactions in the market. It is not al- DKK 55 million.
ways possible to hedge the transferred price risks in full.
DONG Energy therefore has some remaining exposure re-
sulting from these activities.
The market trading function also balances the physical
volumes in the market and, to a lesser extent, engages in
active taking of positions to ensure an ongoing market
presence and thus gain more detailed market insight. Fur-
thermore, DONG Energy has assumed the role of market
maker in the Danish electricity market, which entails fur-
ther market risks.
Currency risks
The majority of DONG Energy’s activities entail exposure GBP and USD constitute the largest exposures, made up
to fluctuations in exchange rates. The key currencies are of a long GBP position and a short USD position. At the
USD, GBP, NOK, PLN, SEK and EUR. The total net expo- end of 2011, 97% of the currency exposure in 2012 had
sure is calculated on an ongoing, consolidated basis. The been hedged.
Group aims to minimise its net exposure via forward con-
tracts, swaps and options. Currency positions are deter-
mined on the basis of estimated operating cash flows in a
five-year time frame. Currency risks in connection with net
investments in foreign subsidiaries and loans without any
time frame are also included.

Interest rate risks

DONG Energy’s interest rate risks relate to interest- The table below shows the key indicators for interest rate
bearing assets, financial price hedges, non-current liabili- risk. Total interest rate risk at the end of 2011 was DKK 3.1
ties and current interest payments. The Group wants to billion, calculated as the amount by which the market
limit the effect of changes in interest rates. As a result, the value of debt, hybrid capital and cash and cash equiva-
loan portfolio, including hybrid capital, was predominantly lents would fall in the event of a one percentage point in-
fixed-rate at the end of 2011. Interest rate risk is managed crease across the interest rate curve. The interest rate risk
actively via a target for the duration of the net debt. corresponds to the loan portfolio (excluding hybrid capi-
tal) having a duration of 7.7 years.
In 2012, a one percentage point increase in the interest
rate would result in a DKK 32 million increase in net inter-
est expense compared with a total cost in 2012 for net debt
and hybrid capital at the end of 2011 of DKK 2.1 billion.
Loan portfolio profile

(excl. hybrid capital) at 31 Dec. 2011
Fixed-interest portion1 (%) 88.9

Duration (years) 7.7
Average time to maturity (years) 9.4
Average interest rate (%) 4.1
1
The fixed-interest portion incl. hybrid capital was 91.5%
Liquidity and financing risks

Implementation of DONG Energy’s strategy assumes fi- At the end of 2011, cash resources were DKK 23.1 billion,
nancing in the form of asset disposals or the raising of of which DKK 13.4 billion was committed borrowing facili-
loans in addition to the cash inflow from operating activities and DKK 9.7 billion available cash and cash equiva-
ties. The refinancing risk is reduced by having a diversified lents and securities.
debt mix and maturity profile and ample cash resources in DONG Energy’s current ratings are A- (Standard &
the form of committed loan facilities, cash or liquid securi- Poor’s) and Baa1 (Moody’s).
ties. At the end of 2011, adjusted net debt amounted to 2.0
To secure financing on attractive terms, DONG Energy times cash flows from operating activities and 1.9 times
has set targets for its credit rating and capital structure EBITDA.
(see page 42). The credit rating target is ratings of at least
BBB+ (Standard & Poor’s) and Baa1 (Moody’s).
Up to and including 2011, the capital structure target
was for adjusted net debt not to exceed three times cash Maturity profile, DKK billion
flows from operating activities. From and including 2012,
Committed borrowing facilities Bonds
the target has been changed so that adjusted net debt
must not exceed 2.5 times EBITDA. 7
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022+
Note: Excluding hybrid capital, which comprises: EUR 600 million

maturing in 3005 with first call date in 2015 and EUR 700 million
maturing in 3010 with first call date in 2021.

Credit risks
DONG Energy seeks to mitigate its credit risks by system- DONG Energy did not suffer any losses on individual ma-
atically credit-rating counterparties, by using financial jor counterparties in 2011. However, the recession has led
standard contracts and by requiring security. Allocated to a certain rise in the number of cases of arrears among
credit lines are monitored continuously and counterparties retail customers, although from a very low level, and the
in the areas of energy trading and financial activities are number appears to have peaked.
monitored daily. For an overview of the credit quality, reference is made
Monitoring of counterparties and allocation of credit to note 32 to the consolidated financial statements.
lines are based on limits fixed by the Board of Directors
and the Executive Board. An internal credit rating is re-
quired for major counterparties. Information from external
credit rating analyses, information in the public domain
and DONG Energy’s own analyses are used to establish
the internal rating and to assess the extent of the commit-
ment with each counterparty.
Results deferred for subsequent recognition

Deferred
in the business performance results for sub Expected transfer to busi-
At the end of 2011, the deferred earnings impact of financial sequent ness performance results
and physical contracts entered into as part of the risk man- recog-
agement of the Group’s commercial exposure and hedging nition
DKK million end-2011 2012 Other years
of the loan portfolio was DKK -0.5 billion. The deferred earn-
ings impact will be recognised in the business performance
Oil 361 114 247
results in the period in which the commercial exposure is
Gas 1,188 1,032 156
recognised. In 2012, the effect of the contracts on the busi-
ness performance results will be DKK +0.9 billion, assum- Electricity (134) (78) (56)
ing market prices, most of which will have an impact on Coal (103) (30) (73)
EBITDA, remain unchanged. Currency (946) (177) (769)
Interest (848) (6) (842)
Total derivative
financial
instruments (482) 855 (1,337)
Commodities and currency are recognised in revenue and cost of sales.

Interest is recognised in net finance costs.

Regulatory risks
Regulatory conditions gas extraction. DONG Energy’s tax risks are assessed and
Changes in regulatory conditions in both Denmark and abroad managed on a continuous basis using the Group’s tax policy
are material to DONG Energy’s strategic opportunities and and tax strategy. DONG Energy seeks open dialogue with tax
thus also its future earnings. However, DONG Energy’s growing authorities and other public authorities and, wherever possi-
international presence is reducing its dependence on regula- ble, endeavours to obtain binding advance indications from
tory changes in the individual countries, such as changes to the authorities to clarify major tax-related risks. Because of
subsidy schemes in connection with investments in wind gen- the Group’s international presence, DONG Energy maintains
eration and changes to public regulation of electricity and gas. a fair transfer pricing system based on OECD guidelines.
DONG Energy’s presence in several stages of the value chain is
contributing to reducing the effects of regulatory changes in Financial regulation
individual stages of the value chain. Furthermore, DONG The financial crisis has led to a desire among European
Energy follows political and regulatory developments closely in regulators for a tightening of the rules on derivatives trad-
the countries in which this is relevant, and takes an active part ing. This has led to three strands of new regulations (EMIR,
in connection with consultations on draft legislation and other MiFID and REMIT) that may have considerable implications
regulatory proposals that involve a risk of material changes. for DONG Energy in terms not only of tied-up funds but also
stricter capital requirements. DONG Energy follows devel-
Tax regimes opments closely and continually analyses whether it is nec-
Changed tax regimes may have a material effect on the essary to adjust the current business model. The REMIT
Group’s financial results, including in connection with oil and Regulation came into force on 28 December 2011.
Operational risks
Construction and operation of facilities Subcontractors

DONG Energy has a number of risks associated with the de- There are risks associated with the implementation of invest-
velopment, construction, operation and maintenance of fa- ment projects, which may be delayed due to factors such as
cilities, and these risks cannot all be directly hedged. DONG delays in installation and transit vessels, commercial and
Energy continuously focuses on avoiding and preventing in- partner-related factors, breach of contract by suppliers and
expedient situations by means of inspection, improvement subcontractors and, for wind farms, cable-laying. Moreover, a
of maintenance programmes and internal and external large part of the equipment required is ordered in markets
checks of production equipment and facilities. A number of that are often characterised by a high level of activity and
insurance policies have been taken out to protect the value where competition may be limited. To mitigate these risks,
of the assets, where possible. The subsidiary DONG Insur- DONG Energy has acquired extensive internal knowledge
ance A/S was established to optimise the and expertise. By acquiring A2SEA and CT Offshore, the
insurance portfolio and is subject to supervision by the Group has gained control of important expertise in installa-
Danish Financial Supervisory Authority. tion logistics related to the establishment of wind farms,
enabling the processes to be optimised.
Risk governance The Board of Directors has the overall responsibility for
DONG Energy’s risk policy. To achieve transparent, efficient
risk management, DONG Energy has organised its risk
Board of Directors management in a number of decision-making bodies.
Group Risk Control
Mandates
Audit and Risk Committee

• The Audit and Risk Committee’s main risk management
Executive Board role is to support the Board of Directors in its supervi-
Finance Committee sion of the risk policy pursued.
• The Executive Board continuously assesses and adjusts
the internal control and risk management systems.
Risk management • The Finance Committee monitors the Group’s risks and
financing as well as the management of mandates relat-
ing to market price risks.
Business areas

Environment ity distribution and in oil and gas activities in the North Sea.
As an energy company, DONG Energy leaves a significant Identification and reduction of potential environmental risks
mark on the environment. The Group therefore has an obli- and social risks is a statutory requirement on large projects,
gation to society to work in a long-term, systematic manner for example offshore wind farms, power stations and explo-
to limit these impacts. Consideration for the climate and the ration and production activities. Such EIAs (Environmental
environment is being continuously integrated as a natural Impact Assessments) help achieve the objective of having a
part of the Group’s activities and decision-making processes. low environmental impact in all phases – from project plan-
DONG Energy has an overall environment policy in which ning, through construction and consumption to disposal
the Group takes responsibility for minimising its environmen- and decommissioning.
tal impact and aims to continually optimise its systems and DONG Energy works systematically to record, manage
processes. The policy is followed up by international certified and follow up on environmental incidents. The Group ap-
management systems in the parts of the business where this plies the principle that the severity of an incident should de-
creates value and which entail the highest risks. The environ- termine the level of management, and has implemented a
mental management standard ISO 14001 is applied at all system for risk assessment and systematic follow-up in con-
Danish facilities that generate electricity and heat, in electric- nection with incidents.
Staff and organisational risks
Employee safety that all the Group’s employees and suppliers must complete
For DONG Energy, a stimulating, healthy working environ- in 2012. This ensures that DONG Energy’s core values and
ment coupled with a high level of safety in the workplace is a safety requirements reach both all the Group’s own employ-
prerequisite for operating a responsible and efficient com- ees and all supplier employees.
pany. Safety is therefore factored into all the Group’s activi-
ties. Safety awareness is high, and the Group continuously Attracting and retaining competent employees
strives to improve its safety performance through prevention, DONG Energy competes internationally for the resources
training, education and involvement of employees to cement and skills that are to secure its future growth. This applies
the culture: “The safe way – or no way”. These initiatives have especially to the commercial and technical skills in Explo-
resulted in a markedly falling injury frequency in recent years. ration & Production and Wind Power and commercial skills
Despite this positive development and the lowest injury in Energy Markets.
frequency in the history of the Group, DONG Energy did not As DONG Energy is still very ’Danish’ in many respects,
meet its ambition of zero fatalities in 2011. There were two difficulties may arise in connection with both recruitment
accidents at the Group’s subcontractors that led to three fa- and retention of international employees.
talities. DONG Energy takes these extremely seriously. In a worst case scenario, an inadequate supply of
The Group has therefore increased its focus on the overall skilled labour could result in DONG Energy not being able
safety plan, including safety at subcontractors, and associ- to implement its planned strategy. To reduce this risk, the
ated systems. The new measures include heightened aware- Group has focused in recent years on a variety of activities,
ness of the safety culture, with safety being made a clear including employer branding, identification of key skills,
managerial priority across DONG Energy. The programme talent/skills development and improvement of the condi-
also comprises development of an e-learning programme tions for attracting skilled foreign labour.
• Group Risk Control is responsible for controlling that Market and credit risks are managed under powers ap-
DONG Energy’s financial risks, associated operational proved by the Board of Directors which the Executive
risks, IT risks and strategic risks are identified, measured Board has delegated via an overall risk policy for DONG
and accounted for in accordance with the Group’s guide- Energy and the individual business areas.
lines. Group Risk Control reports to the Chairman of the DONG Energy also has an independent central function
Board of Directors’ Audit and Risk Committee. that checks all investment proposals before they are sub-
mitted to the management. The function also ensures opti-
DONG Energy also has a central risk management function mum focus on value creation in the execution of approved
that continuously monitors the Group’s overall financial investments.
and energy-related risks and ensures the Group applies ap- Lastly, DONG Energy is committed to ensuring that the
propriate limits for its risk management. The risk manage- company is a safe workplace and limiting any impacts on
ment function reports regularly to DONG Energy’s Finance the climate and the environment. These efforts are coordi-
Committee, and the Board of Directors’ Audit and Risk nated by the corporate function QHSE (quality, health,
Committee receives a quarterly report on the risks identi- safety, environment).
fied as well as reporting on compliance with guidelines.

CORPORATE GOVERNANCE
board of directors 2011
DONG Energy’s Board of Directors and Executive

Board continually strive to improve its corporate
governance. The Board of Directors and the Execu-
tive Board endeavour to enhance transparency and
promote active ownership, partly by ensuring a
high information level and engaging in dialogue
with shareholders and other relevant stakeholders. Fritz H. Schur
Chairman
As a State-owned public limited company, DONG
Energy operates on terms very similar to those
b. 1951. Joined the board as Chairman in 2005,
applying to listed companies. The Group has
re-elected 2011. Term of office expires in 2012.
therefore elected to generally comply with the
Chairman of Remuneration Committee and Nomination
recommendations of the Committee on Corporate Committee.
Governance that apply to listed companies.
The recommendations can be viewed at
Education: BSc (Business Administration), Copenhagen
www.corporategovernance.dk.
Business School, 1973
In accordance with section 107(c) of the Danish

Remuneration, Board: DKK 500,000
Financial Statements Act, DONG Energy’s Board of
Remuneration, Committees: DKK 50,000
Directors has prepared a statement on corporate
governance. The statement forms an integral part
Career and posts
of management’s review for the financial year 1
1973 Formation of FSC A/S (Fritz Schur Consumer
January – 31 December 2011, and is included in the
Products A/S)
complete annual report on pages 52-55.
1978- CEO, Chairman, Deputy Chairman or
The statement includes a description of DONG member of companies in the Fritz Schur
Group
Energy’s management structure, information on
1988-1996 Reconstruction and winding up of com
the company’s positions on ’Recommendations on
panies in distress, primarily for banks
Corporate Governance’ and a description of the
principal elements of DONG Energy’s internal con-
Other management positions
trol and risk management systems in connection
with the financial reporting. Member of the Board of Directors and/or CEO of F. Schur &
Co. A/S, FSS MID ApS, Havnefrontens Selskabslager
909 ApS.
Member of the Board of Directors and CEO of Fritz Schur

A/S and CEO or Chairman of the Board of Directors of two
wholly-owned subsidiaries.
CEO of FS 1 ApS and Chairman of the Board of Directors of

a wholly-owned subsidiary.
CEO of FS 11 ApS and Chairman of the Boards of Directors

of two wholly-owned subsidiaries.
28 of the Group’s companies are included in the
reporting process on internal control. Based on the CEO of FS 12 ApS and Deputy Chairman of one directly
internal controls identified, these companies repre- and one indirectly wholly-owned subsidiary.
sent 86% of revenue and 66% of assets.
Chairman: SAS AB (Sweden), PostNord AB, F. Uhrenholt
Holding A/S, Relationscore ApS and Chairman of the
Board of a wholly-owned subsidiary, C.P. Dyvig & Co. A/S
Deputy Chairman: Brd. Klee A/S
Member: WEPA Industrieholding SE,

Experimentarium – Center for formidling af naturvidenskab
og moderne teknik (foundation)

lars Nørby Johansen Hanne StEn Andersen
Deputy Chairman Employee representative
b. 1949. Joined the board in 1997, re-elected 2011. Deputy b. 1960. Joined the board in 2007. Term of office expires
Chairman since 2001. Term of office expires in 2012. in 2014.
Chairman of Audit and Risk Committee.
Member of Remuneration Committee and Nomination Education: Graduate Diploma in Business Administration,
Committee. Copenhagen Business School, 1990.
Education: MPhil, Århus University, 1974
Career and posts
Remuneration, Board: DKK 300,000 1985-1992 Industrirådet (replaced by Confederation
Remuneration, Committees: DKK 125,000 of Danish Industry (DI)),
Information Consultant
Career and posts 1992-1998 DI, HR Consultant
1974-1983 Odense University, Lecturer in Political 1998-2000 Leo Pharma A/S, HR Partner for Production
Science and from 1978 Associate Professor 2000-2003 Danisco A/S, Group HR, HR Consultant
1977-1979 European University Center, Florence (Italy), 2003- NESA A/S (now DONG Energy A/S),
Associate Professor Lead HR Business Partner, Sales &
Distribution
1982 Harvard University, Visiting Fellow
1983-1985 Danish School of Public Administration,
Management Consultant
1986 Danish Insurance Association,
Vice President
1986-1988 Baltica, Claims Manager, Vice President
1988-1995 Falcks Redningskorps A/S and
Falck Holding A/S, CEO
1995-2000 Falck A/S, CEO
2000-2004 Group 4 Falck A/S, CEO
2004-2005 Group 4 Securicor, CEO
Other management positions JAKOB BROGAARD

Chairman: Falck A/S and a wholly-owned subsidiary,
Georg Jensen A/S, William Demant Holding A/S, Dansk
b. 1947. Joined the board in 2007. re-elected 2011.
Vækstkapital, University of Southern Denmark
Term of office expires in 2012. Member of Audit and Risk
Committee.
Deputy Chairman: Rockwool Fonden
Education: Academy Foundation Degree (Management

Member: Codan A/S and a wholly-owned subsidiary, Index
Accounting and Business Finance), 1976
Award A/S, Institut for selskabsledelse Aps, Arp-Hansen
Hotel Group
Career and posts

1964-2007 Danske Bank A/S
(member of Executive Committee 1996-2007)

Chairman: FS Finans A/S
Deputy Chairman: LR Realkredit A/S,

Finansiel Stabilitet A/S
Member: OW Bunker & Trading A/S, Newco AEP A/S

board of directors 2011
Benny GøbeL Jørn Peter Jensen

Employee representative
b. 1964. Joined the board in 2011. Term of office expires
b. 1967. Joined the board in 2011. Term of office expires in 2012. Member of Audit and Risk Committee.
in 2014. Education: MSc (Economics and Business Administration),
Education: MSc (Civil Engineering), Energy Resources Copenhagen Business School, 1988.
Engineering, Technical University of Denmark (DTU), 1995. Remuneration, Board: DKK 175,000
PhD, Technical University of Denmark, 2000. Remuneration, Committees: DKK 50,000
Career and posts
Career and posts 1992-1993 Brüel & Kjær, Group Controller
2000-2005 Technical University of Denmark, 1994-1999 Foss Electric A/S, CFO
Associate Professor 1999-2000 Nilfisk Advance A/S, Executive Vice President
2005- Energi E2 A/S (now DONG Energy A/S), and CFO
Engineer, Thermal Power 2000-2001 Carlsberg A/S, CFO
2001-2004 Carlsberg A/S, CEO
2004-2007 Carlsberg Breweries and Carlsberg A/S, CFO
2007- Carlsberg Breweries og Carlsberg A/S,
Deputy CEO and CFO

Member of the management: Member of the management
of 27 wholly-owned Danish and foreign subsidiaries of the
Carlsberg Group and member of the management of
Boliginteressentskabet Tuborg
Member of Committe on Corporate Governance

Jens Kampmann
CEO: Ekeløf Invest ApS
b. 1937. Joined the board in 2005, re-elected 2011.

Term of office expires in 2012. Member of Audit and Risk
Committee and Remuneration Committee.
Education: MSc (Economics), Copenhagen University, 1962
Career and posts
1962-1964 Danish Ministry of Education
1964-1971 Danish Ministry of Finance (Ministry of
Economic Affairs)
1966-1978 Member of Danish Parliament and, in 1971,
1972-1973 and 1977-1978, also Minister
Jytte Koed Madsen
1974-1977 Danish Ministry of Finance (Ministry of Employee representative
Economic Affairs)
1978-1990 Danish Environmental Protection Agency, b. 1953. Joined the board in 2011. Term of office expires
Director in 2014.
1990-2006 Invest Miljø A/S, CEO Education: Commercial college, 1973,
Other management positions Technical Assistant, Faculty of Mechanical Engineering,
Chairman: Frydenholm Holding A/S and a wholly-owned 1988
subsidiary, Dalum Holding A/S, Desmi A/S, Special Waste Remuneration, Board: DKK 175,000
Systems A/S
Member: White Arkitekter A/S, JKC ApS, Retrocom Career and posts
Holding A/S, Genan A/S, Genan Business & Development 1988-2004 Skærbækværket, Technical Assistant
A/S, Genan Global A/S, Kampus.NU ApS,
2004- Elsam A/S (now DONG Energy A/S),
Frydenholm Fødevarer A/S Technical Coordinator,
CEO: JKC ApS, Toftøje Invest ApS Group Finance & Services

Poul Arne Nielsen Jens Nybo Stilling Sørensen
Employee representative
b. 1944. Joined the board in 2006, re-elected 2011. Term of
office expires in 2012. b. 1968. Joined the board in 2007. Term of office expires
Education: Agricultural college, 1968, and MSc (Sports, in 2014.
Social Science and Business Economics), 1981 Education: Unskilled
Remuneration, Board: DKK 175,000 Remuneration, Board: DKK 175,000
Career and posts Career and posts

1982-1998 Høje-Taastrup Upper Secondary School, 1990-2000 SK Power Company A/S
Lecturer
2000- Energi E2 A/S (now DONG Energy A/S)
1994-2007 Vallø Municipality, Mayor Semi-skilled Worker, Thermal Power
2007- Stevns Municipality, Mayor

Chairman: SEAS-NVE A.m.b.a. and a wholly-owned sub-
sidiary, SEAS-NVE Strømmen A/S, Sjællandske Medier
A/S, Dansk Energi
Member: Sampension KP Livsforsikring A/S and a wholly-

owned subsidiary
Lars Rebien Sørensen Mogens Vinther
b. 1954. Joined the board in 2007, re-elected 2011. Term of b. 1947. Joined the board in 2010, re-elected 2011. Term of
office expires in 2012. office expires in 2012.
Education: MSc (Forestry) (Royal Veterinary and Agricul- Education: LL.M. (Master of Laws), 1973. Lawyer 1976.
tural University, Copenhagen), 1981 Entitled to appear before the Danish High Court and
Graduate Diploma in International Trade, Copenhagen Supreme Court.
Business School, 1983 Remuneration, Board: DKK 175,000
Career and posts
Career and posts 1973 Advokatfirma Langberg & Vinther (law firm)
1982- Novo Nordisk A/S, CEO since 2000 1980- Advokatfirma Langberg & Vinther, partner
Other management positions Other management positions

Member: Bertelsmann AG (Germany), Thermo Fisher Chairman: Fonden Det Gamle Apotek i Ribe, Foreningen
Scientific Inc. (US), Danmarks Nationalbank’s Board of Gammelt Præg - Ribe Bybevaring
Directors
Member: Syd Energi Holding A/S, Syd Energi A.m.b.a.,
Fonden Ribe Byferie, Fonden til Ribe Bys Forskønnelse

executive board 2011
Carsten Krogsgaard Thomsen Anders Eldrup

Registered with the Danish Commerce and Companies Registered with the Danish Commerce and Companies
Agency as CFO. Agency as CEO
b. 1957. CFO since 2002. b. 1948. CEO since 2001.
Education: MSc (Economics), Education: MSc (Political Science),
Copenhagen University, 1983 Århus University,1972
Remuneration: DKK 5,708,013 Remuneration: DKK 6,092,882
Career and posts Career and posts

1983-1985 Danish Ministry of the Interior 1972-1973 Office of the Auditor General of Denmark
1985-1986 Danish Ministry of Finance 1973-1980 Danish Ministry of Finance, Principal
1986-1988 Andelsbanken 1980-1984 Danish Ministry of Finance, Personal
1988-1991 McKinsey, Consultant Secretary to Minister
1991-1995 Rigshospitalet, Director of Finance 1984-1988 Danish Ministry of Finance, Head of Division
1995-2002 Danish State Railways, CFO 1988-1990 Danish Ministry of Finance, Deputy
2002- DONG Energy A/S, CFO Permanent Secretary
1990-1991 Danish Ministry of Finance, Department of
Other management positions the Budget, Director
Deputy Chairman: 1991-2001 Danish Ministry of Finance, Permanent
NNIT A/S Secretary
2001- DONG Energy A/S, CEO
Member:
GN Store Nord A/S and two whollyowned subsidiaries Other management positions
(GN ReSound and GN Netcom) Chairman: Copenhagen Cleantech Cluster
Chairman of the Audit Committee of GN Store Nord A/S
Member:
Technical University of Denmark - DTU
Experimentarium - Center for formidling af naturvidenskab
og moderne teknik (foundation)
Lindoe Offshore Renewables Center (fund)
Rockwool Fonden
Terma A/S

The Group annual report, which, pursuant to section 149 of EU and Danish disclosure requirements for listed compa-
Statement by the Executive Board and the Board of Directors

the Danish Financial Statements Act, is an extract of DONG nies and State-owned public limited companies.
Energy’s complete annual report, does not include account- In our opinion, the Consolidated Financial Statements
ing policies for the financial statements and non-financial and the Parent Company Financial Statements give a true
statements, licence overview, company overview, the finan- and fair view of the financial position at 31 December 2011
cial statements of the parent company, DONG Energy A/S, of the Group and the Parent Company and of the results of
and the statement on corporate governance, including inter- the Group and Parent Company operations and cash flows
nal control and risk management systems in connection with for the financial year 1 January – 31 December 2011.
the financial reporting. The complete annual report, includ- In our opinion, Management’s Review includes a true
ing accounting policies for the financial statements and non- and fair account of the development in the operations
financial statements, licence overview, company overview, and financial circumstances of the Group and the Parent
the parent company financial statements and the statutory Company, of the results for the year and of the financial
corporate governance statement, can be downloaded at position of the Group and the Parent Company as well as a
www.dongenergy.com. Following adoption at the AGM, the description of the most significant risks and elements of
complete annual report will also be available from the Danish uncertainty facing the Group and the Parent Company.
Business Authority (Erhvervsstyrelsen). DONG Energy’s non-financial reporting has been pre-
pared in accordance with the international guidelines for
Management has made the following statement in respect sustainability reporting from Global Reporting Initiative
of the complete annual report. with application level B+ (GRI-G3 2006 Guidelines and the
Electric Utilities Sector Supplement). In our opinion, the
The Board of Directors and the Executive Board have today non-financial report represents a reasonable and balanced
considered and approved the annual report of DONG Energy representation of the Company’s corporate responsibility
A/S for the financial year 1 January – 31 December 2011. and sustainability performance.
The annual report is prepared in accordance with Inter- We recommend that the annual report be approved at
national Financial Reporting Standards as adopted by the the Annual General Meeting.
Skærbæk, 9 March 2012
Executive Board:
Anders Eldrup Carsten Krogsgaard Thomsen

CEO CFO
Board of Directors:
Fritz H. Schur Lars Nørby Johansen Hanne Steen Andersen* Jakob Brogaard
Chairman Deputy Chairman
Benny Gøbel* Jørn P. Jensen Jens Kampmann Jytte Koed Madsen*
Poul Arne Nielsen Jens Nybo Stilling Sørensen* Lars Rebien Sørensen Mogens Vinther
* Employee representative

consolidated financial statements
Notes Notes to the balance sheet

INDEX OF Notes
1 Basis of reporting 68 15 Intangible assets 84

2 Critical accounting estimates and judgements 69 16 Property, plant and equipment 88
17 Associates and other securities 91
Notes to the statement of comprehensive income
18 Inventories 92
3 Segment information 72
19 Receivables 93
4 Revenue 77
20 Construction contracts 95
5 Fuel and energy 78
21 Assets classified as held for sale 95
6 Staff costs 78
22 Equity 96
7 Research and development costs 80
23 Deferred tax 98
8 Fee to auditor appointed at the Annual General Meeting 81
24 Provisions 100
9 Other operating income and expenses 81
25 Loans and borrowings 101
10 Government grants 81
26 Interest-bearing debt and capital employed 102
11 Finance income 82
27 Income tax receivable and payable 103
12 Finance costs 82
13 Income tax expense 83
14 Earnings per share 84
58 Consolidated financial statements – DONG Energy Group annual report 2011

Notes to the statement of cash flows
28 Acquisition of enterprises 103 37 Contingent assets and liabilities 120
29 Disposal of enterprises 105 38 Related party transactions 122
30 Transactions with non-controlling interests 106 39 Events after the reporting period 123
31 Cash and cash equivalents and securities 107
Other notes
32 Credit and market risks 108
33 Financial instruments 110
34 Jointly controlled entities 118
35 Lease commitments 119
36 Contractual obligations and security arrangements 120
DONG Energy Group annual report 2011 – Consolidated financial statements 59

Year ended 31 December
consolidated statement of comprehensive income
2011 2010
Business Business
perform- Adjust- perform- Adjust-
DKK million Note ance ments IFRS ance ments IFRS
Revenue 3, 4, 10 56,842 1,595 58,437 54,616 (18) 54,598

Fuel and energy 5 (31,605) 230 (31,375) (31,408) (28) (31,436)
Other external expenses 7, 8 (7,884) - (7,884) (6,365) - (6,365)
Staff costs 6 (3,593) - (3,593) (2,946) - (2,946)
Other operating income 9, 10 280 - 280 295 - 295
Other operating expenses 9 (270) - (270) (57) - (57)
Operating profit before depreciation,

amortisation and impairment losses
(EBITDA) 13,770 1,825 15,595 14,135 (46) 14,089
Depreciation, amortisation and impairment
losses on intangible assets and property,
plant and equipment 3, 15, 16 (7,670) - (7,670) (6,015) - (6,015)
Operating profit (EBIT) 6,100 1,825 7,925 8,120 (46) 8,074

Gain on disposal of enterprises 29 225 - 225 905 - 905
Share of profit of associates 17 36 - 36 77 - 77
Finance income 11 5,811 - 5,811 3,407 - 3,407
Finance costs 12 (6,093) - (6,093) (5,002) - (5,002)
Profit before tax 6,079 1,825 7,904 7,507 (46) 7,461

Income tax expense 13 (3,197) (457) (3,654) (3,008) 11 (2,997)
Profit for the year 2,882 1,368 4,250 4,499 (35) 4,464
Other comprehensive income

Value adjustments for the year (912) (979)
Value adjustments transferred to revenue 300 (1,052)
Value adjustments transferred to fuel and
energy (88) (128)
Value adjustments transferred to net finance
costs 147 7
Value adjustments transferred to inventories - (204)
Tax on value adjustments of hedging
instruments 127 599
Foreign exchange adjustments, foreign
enterprises 463 716
Foreign exchange adjustments, equity-like
loans, etc. (216) 36
Tax on foreign exchange adjustments, equity-
like loans, etc. 42 (9)
Other comprehensive income (137) (1,014)
Total comprehensive income 4,113 3,450

consolidated statement of comprehensive income
2011 2010
Business Business
perform- Adjust- perform- Adjust-
DKK million Note ance ments IFRS ance ments IFRS
Profit for the year is attributable to:

Equity holders of DONG Energy A/S 2,428 1,368 3,796 4,272 (35) 4,237
Hybrid capital holders of DONG Energy A/S
(adjusted for tax effect) 269 - 269 334 - 334
Non-controlling interests 22 185 - 185 (107) - (107)
Profit for the year 2,882 1,368 4,250 4,499 (35) 4,464
Total comprehensive income for the year is

attributable to:
Equity holders of DONG Energy A/S 3,422 3,268
Hybrid capital holders of DONG Energy A/S
(adjusted for tax effect) 269 334
Non-controlling interests 422 (152)
Total comprehensive income 4,113 3,450
Earnings per share (EPS) and diluted earn-

ings per share (DEPS) of DKK 10, in DKK 14 12.92 14.43

At 31 December
consolidated balance sheet
Assets
DKK million Note 2011 2010
Goodwill 373 651

Rights 1,221 1,540
CO2 emissions allowances 834 182
Completed development projects 279 357
In-process development projects 22 21
Intangible assets 3, 15 2,729 2,751
Land and buildings 4,142 2,859

Production assets 65,438 57,502
Exploration assets 1,611 975
Fixtures and fittings, tools and equipment 282 205
Property, plant and equipment under construction 23,037 19,144
Property, plant and equipment 3, 16 94,510 80,685
Investments in associates 17 3,226 2,919

Other securities and equity investments 17 418 374
Deferred tax 23 181 404
Receivables 19 3,314 2,862
Other non-current assets 7,139 6,559
Non-current assets 104,378 89,995
Inventories 18 4,244 3,091

Receivables 19 32,492 31,614
Income tax 27 19 27
Securities 31 9,914 7,620
Cash 31 2,342 4,147
Current assets 49,011 46,499
Assets classified as held for sale 21 684 845
Assets 154,073 137,339

consolidated balance sheet
Equity and liabilities
Share capital 2,937 2,937
Reserves 7,913 8,287

Retained earnings 27,943 26,278
Proposed dividends 1,457 2,203
Equity attributable to DONG Energy A/S 40,250 39,705

Hybrid capital 9,538 8,088
Non-controlling interests 7,952 3,515
Equity 22 57,740 51,308
Deferred tax 23 9,336 8,188

Pension obligations 6 15 22
Provisions 24 11,936 9,418
Bond loans 25 18,961 22,833

Bank loans 25 15,754 10,673
Other payables 25 2,329 1,688
Non-current liabilities 58,331 52,822
Provisions 24 517 444

Bond loans 25 3,717 3,737
Bank loans 25 1,795 660
Other payables 25 30,825 27,584
Income tax 27 763 621
Current liabilities 37,617 33,046
Liabilities 95,948 85,868
Liabilities associated with assets classified as held for sale 21, 25 385 163
Equity and liabilities 154,073 137,339

consolidated statement of changes in equity
to equity holders of
Equity attributable
DONG Energy A/S

Proposed dividends
Translation reserve
Retained earnings
Hedging reserve
Non-controlling
Share premium
Hybrid capital
Share capital
interests
Total
DKK million
Equity at 1 January 2011 2,937 (1,108) 147 9,248 26,278 2,203 39,705 8,088 3,515 51,308
Comprehensive income for

the year
Profit for the year - - - - 3,796 - 3,796 269 185 4,250
Other comprehensive
income
Value adjustments for the
year - (917) - - - - (917) - 5 (912)
Value adjustments trans-
ferred to revenue - 300 - - - - 300 - - 300
ferred to fuel and energy - (88) - - - - (88) - - (88)
ferred to net finance costs - 147 - - - - 147 - - 147
Foreign exchange adjust-
ments, foreign enterprises - 15 215 - - - 230 - 233 463
ments, equity-like loans, etc. - - (216) - - - (216) - - (216)
Tax on other comprehensive
income - 128 42 - - - 170 - (1) 169
Total comprehensive
income 0 (415) 41 0 3,796 0 3,422 269 422 4,113
Transactions with owners

Coupon payments, hybrid
capital - - - - - - 0 (515) - (515)
Tax on coupon and costs,
hybrid capital - - - - - - 0 246 - 246
Addition, hybrid capital - - - - - - 0 5,127 - 5,127
Disposal, hybrid capital - - - - - - 0 (3,802) - (3,802)
Adjustments amortisation
original hybrid capital - - - - (125) - (125) 125 - 0
Proposed dividends - - - - (1,457) 1,457 0 - - 0
Dividends paid - - - - - (2,203) (2,203) - (16) (2,219)
Addition, non-controlling
interests - - - - 96 - 96 - 4.080 4,176
Disposal, non-controlling
interests - - - - (41) - (41) - (35) (76)
Adjustments disposals - - - - (604) - (604) - (14) (618)
Changes in equity in 2011 0 (415) 41 0 1,665 (746) 545 1,450 4,437 6,432
Equity
at 31 December 2011 2,937 (1,523) 188 9,248 27,943 1,457 40,250 9,538 7,952 57,740

consolidated statement of changes in equity
to equity holders of
Equity attributable
Proposed dividends
DONG Energy A/S

Translation reserve
Retained earnings
Hedging reserve
Non-controlling
Share premium
Hybrid capital
Share capital
interests
Total
DKK million
Equity at 1 January 2010 2,937 658 (650) 9,248 23,944 481 36,618 8,088 102 44,808
Comprehensive income for

the year
Profit (loss) for the year - - - - 4,237 - 4,237 334 (107) 4,464
Other comprehensive
income
Value adjustments for the
year - (979) - - - - (979) - - (979)
ferred to revenue - (1,059) - - - - (1,059) - 7 (1,052)
ferred to fuel and energy - (128) - - - - (128) - - (128)
ferred to net finance costs - 7 - - - - 7 - - 7
ferred to inventories - (204) - - - - (204) - - (204)
ments, foreign enterprises - (2) 770 - - - 768 - (52) 716
ments, equity-like loans, etc. - - 36 - - - 36 - - 36
Tax on other comprehensive
income - 599 (9) - - 590 - - 590
Total comprehensive
income 0 (1,766) 797 0 4,237 0 3,268 334 (152) 3,450
Transactions with owners

Coupon payments, hybrid
capital - - - - - - 0 (451) - (451)
Tax on coupon hybrid capital - - - - - - 0 117 - 117
Proposed dividends - - - - (2,203) 2,203 0 - - 0
Dividends paid - - - - - (481) (481) - (16) (497)
Addition, non-controlling
interests - - - - 475 - 475 - 3,544 4,019
Disposal, non-controlling
interests - - - - (175) - (175) - 37 (138)
Changes in equity in 2010 0 (1,766) 797 0 2,334 1,722 3,087 0 3,413 6,500
Equity
at 31 December 2010 2,937 (1,108) 147 9,248 26,278 2,203 39,705 8,088 3,515 51,308

consolidated statement of cash flows
Operating profit before depreciation, amortisation and impair-

ment losses (EBITDA) 15,595 14,089
Other adjustments (1,413) (364)
Interest income and similar items 5,979 3,743
Interest expense and similar items (6,808) (4,864)
Income tax paid 27 (1,647) (106)
Cash flows from operating activities before change in

net working capital (FFO) 11,706 12,498
Change in inventories (1,144) 305
Change in trade receivables 1,976 (1,501)
Change in other receivables (949) 696
Change in trade payables 749 1,072
Change in other payables 286 1,144
Change in net working capital 918 1,716
Cash flows from operating activities 12,624 14,214

Purchase of intangible assets and property, plant and equipment (17,851) (15,209)
Sale of intangible assets and property, plant and equipment 1,936 939
Acquisition of enterprises 28 (22) (33)
Disposal of enterprises 29 45 2,279
Acquisition of associates 17 (133) (57)
Acquisition of other equity investments 17 (63) (248)
Purchase of securities (8,124) (3,680)
Sale of securities 6,061 1,303
Change in other non-current assets (166) 99
Financial transactions with associates (1,081) (245)
Dividends received and capital reduction 17 60 59
Cash flows from investing activities (19,338) (14,793)

Proceeds from raising of loans 9,371 5,226
Instalments on loans (7,121) (2,928)
Coupon payments on hybrid capital (515) (451)
Repurchase of hybrid capital (3,802) -
Proceeds from issuing of hybrid capital 5,127 -
Dividends paid (2,203) (481)
Transactions with non-controlling interests 30 3,945 330
Change in other non-current liabilities 116 (574)
Cash flows from financing activities 4,918 1,122
Net increase (decrease) in cash and cash equivalents (1,796) 543
Cash and cash equivalents at 1 January 3,625 2,915

Net increase (decrease) in cash and cash equivalents (1,796) 543
Cash classified as held for sale, etc. (352) -
Foreign exchange adjustments of cash and cash equivalents (37) 167
Cash and cash equivalents at 31 December 31 1,440 3,625

consolidated statement of cash flows
Supplementary information
Cash flows from investing activities (19,338) (14,793)
Dividends received and capital reduction, reversal (60) (59)
Purchase and sale of securities, reversal 2,063 2,377
Loans to jointly controlled entities, reversal 865 -
Sale of property, plant and equipment and intangible assets as
well as enterprises, reversal (1,981) (3,217)
Gross investments (18,451) (15,692)

Transactions with non-controlling interests, change in interest-
bearing balances 19 (535) 3,615
Transactions with non-controlling interests, other 30 3,945 330
Sale of property, plant and equipment and intangible assets as
well as enterprises 1,981 3,217
Net investments 1 (13,060) (8,530)
Dividends, net (2,152) (422)

Coupon payments on hybrid capital (515) (451)
Dividends and hybrid capital coupon (2,667) (873)
Analysis of change in interest-bearing net debt

Interest-bearing net debt at 1 January 22,139 26,929
Cash flows from operating activities (12,624) (14,214)
Net investments 13,060 8,530
Dividends and hybrid capital coupon 2,667 873
Repurchase and issuing of hybrid capital (1,325) -
Foreign exchange adjustments of interest-bearing net debt (302) 21
Interest-bearing net debt at 31 December 23,615 22,139

50% of hybrid capital due in 3005 2,206 4,044
Adjusted interest-bearing net debt at 31 December 25,821 26,183
1
Net investments are defined as the effect on DONG Energy’s interest-bearing net debt of investments and acquisitions and disposals of enterprises.
Definitions of financial highlights are set out on the inside of the back cover.

01
notes
Basis of reporting
DONG Energy A/S is a public limited company with its reg- New International Financial Reporting
istered office in Denmark. The annual report for the period 1 Standards and IFRIC Interpretations
January – 31 December 2011 comprises the consolidated finan- The IASB has issued the following new or amended standards
cial statements of DONG Energy A/S and its subsidiaries (the and interpretations that have not yet become effective and are
Group) as well as separate financial statements for the parent consequently not mandatory in connection with the prepara-
company, DONG Energy A/S. tion of DONG Energy’s annual report for 2011:
The annual report has been prepared in accordance with Adopted by the EU
International Financial Reporting Standards (IFRSs) as adopt- • Amendments to IFRS 7 Financial Instruments: Disclosures
ed by the EU and also complies with International Financial
Reporting Standards issued by the IASB. DONG Energy has considered the effect of this financial report-
ing standard. This amended standard is not expected to have a
The annual report has been prepared in accordance with material effect on DONG Energy’s financial reporting.
Danish disclosure requirements for annual reports of listed
and State-owned public limited companies, see the statu- Not adopted by the EU
tory order on adoption of IFRS issued pursuant to the Danish • Amendments to IFRS 7 Disclosures - Offsetting Financial
Financial Statements Act. Assets and Financial Liabilities
• IFRS 9 Financial Instruments
The annual report is presented in Danish kroner (DKK), round- • IFRS 10 Consolidated Financial Statements
ed to the nearest million, unless otherwise stated. • IFRS 11 Joint Arrangements
• IFRS 12 Disclosures of Interests in Other Entities
The annual report has been prepared on the historical cost • IFRS 13 Fair Value Measurement
basis except that derivative financial instruments, financial • IAS 27 Separate Financial Statements
instruments held for trading, financial instruments classified • IAS 28 Investments in Associates and Joint Ventures
as available for sale and CO2 emissions allowances held for • Deferred Tax: Recovery of Underlying Assets: Disclosure
trading are measured at fair value. (Amendments to IAS 12)
• Presentation of Items of Other Comprehensive Income
Non-current assets and disposal groups classified as held for (Amendments to IAS 1)
sale are stated at the lower of carrying amount before the re- • Amendments to IAS 19 Employee Benefits
classification and fair value less costs to sell. • Amendments to IAS 32 Offsetting Financial Assets and
Financial Liabilities
The accounting policies described in note 40 in the complete • IFRIC 20: Stripping Costs in the Production Phase of a
annual report have been applied consistently to the financial Surface Mine
year and the comparative figures.
DONG Energy has started assessing the effect of these finan-
Implementation of new standards cial reporting standards and expects that IFRS 10 and 11 will
and interpretations have limited effect on the financial reporting. IFRS 10 and 11
In 2011, DONG Energy implemented the following standards become effective on 1 January 2013.
(IASs and IFRSs) and interpretations (IFRICs), which are
relevant to DONG Energy and will apply to reporting periods DONG Energy expects to implement the new standards and
beginning on or after 1 January 2011: interpretations from their mandatory effective dates.
• Revised IAS 24 Related Party Disclosures

• Improvements to IFRSs May 2010
The implementation has not had a material effect on the an-

nual report for 2011.

02
noteS
Critical accounting estimates and judgements
In the process of preparing the consolidated financial state- to measure the recoverable amount to determine whether the
ments, management makes a number of estimates and value of the assets is impaired. The assumptions and criteria
judgements that affect the reported amounts of assets and applied to determine the assets’ recoverable amounts con-
liabilities at the balance sheet date, the reported amounts of stitute management’s best estimates based on the available
income and expenses in the reporting period and disclosures information such as market prices, cost levels, revenue growth
on contingent assets and contingent liabilities at the balance rates and reserve estimates.
sheet date.
Determination of oil and gas reserves
Estimation uncertainties The evaluation of oil and gas reserves affects the assessment
Estimates made are based on historical experience and other of the recoverable amount and depreciation profile for DONG
factors that are believed by management to be reasonable Energy’s Exploration & Production’s assets, DKK 33.1 bil-
under the circumstances, but that, by their nature, are un- lion (2010: DKK 29.0 billion). The assessment of oil and gas
certain and unpredictable. The effect of such estimates and reserves is based on estimates of both proved and probable
judgements may lead to results that differ significantly from reserves (Proved and Probable/2P). Proved reserves are the es-
those that would result from the use of other judgements and timated volumes of oil and gas that, under existing economic
assumptions. conditions, are recoverable using known technology from
reservoirs in which oil or gas has been proved. Oil and gas ex-
Again in 2011, the international financial crisis led to height- ploration and extraction technology is undergoing continuous
ened focus on the estimates made in respect of, for example, development. Probable reserves are those additional reserves
discount rates and expectations concerning the future devel- that are less likely to be recovered than proved reserves.
opment of energy prices and exchange rates to ensure that
the consolidated financial statements are not affected by DONG Energy conducts an annual internal evaluation and
short-term fluctuations that are not expected to apply in the review of the Group’s reserves. An independent valuer has
long term. reviewed DONG Energy’s reserves classification system and
guidelines and has verified that the internal guidelines are in
Estimates and judgements relating to impairment testing agreement with the SPE-PRMS directives.
of intangible assets and property, plant and equipment, and
relating to recoverable oil and gas reserves, have had a signifi- Useful lives and residual values for production assets
cant effect on the consolidated financial statements for 2011. The expected useful lives and residual values of production as-
These areas are described in the following. sets, DKK 65.4 billion (2010: DKK 57.5 billion), are determined
based on historical experience and expectations concerning
Impairment testing the future use of these assets. The depreciation profile for
DONG Energy has significant investments in intangible as- production assets depends on the type of production asset
sets and property, plant and equipment, including primarily and is described in note 40 in the complete annual report. The
production assets, DKK 65.4 billion (2010: DKK 57.5 billion), expected future applications and residual values may subse-
the values of which are sensitive to various factors, including quently prove not to be realisable, which may require useful
changes in energy prices, exchange rates, interest rates and lives and residual values to be reviewed and may result in a
regulatory provisions. need for the recognition of impairment losses or the charging
of a loss on disposal of the assets. The depreciation periods
Goodwill and in-process development projects, DKK 0.4 billion applied are set out in note 40 in the complete annual report.
(2010: DKK 0.7 billion), are tested annually for impairment.
Other intangible assets and property, plant and equipment Investments in associates, other securities and equity
are tested if there are any indications of impairment. Such investments, and other non-current investments
indications may include, for example, long-term changes in Investments in associates, other securities and equity invest-
future market conditions, market prices of oil, gas, electricity, ments, and other non-current investments, DKK 7.1 billion in
fuel and CO2, changes in the weighted average cost of capital, total (2010: DKK 6.6 billion), are tested for impairment if there
reductions in estimated reserves, or changes in regulatory are indications of impairment. Such indications may include
provisions. changes in regulatory, financial and technological factors and
general market conditions.
If a specific judgement indicates a possible impairment, and
neither quoted market prices in active markets nor prices of
similar assets are available, discounted cash flows are used

02
notes
Critical accounting estimates and judgements
Valuation of receivables contract that may result in the contracts becoming onerous
Trade receivables etc. total DKK 16.4 billion (2010: DKK 17.2 depending on market developments, etc., and the liabilities
billion). Write-downs are made for bad and doubtful debts incurred by the Group as a result of these contracts may also
on the basis of due date and historical experience. These be subject to uncertainty. The judgements concerning these
judgements are subject to uncertainties, as they are based complex contracts and their future effects are subject to sig-
on assessments of the counterparty’s ability and willingness nificant uncertainties.
to pay. The risk of bad debts remains higher than normal due
to the international financial crisis, and this has been taken Other provisions and contingent items
into account in connection with the valuation of the Group’s Management continuously evaluates provisions, DKK 3.1 bil-
receivables. lion (2010: DKK 2.7 billion), contingent assets and contingent
liabilities as well as the probable outcome of pending and po-
Receivables from the disposal of equity tential litigation, etc. The outcome depends on future factors,
investments to non-controlling interests which, by their nature, are uncertain. Reference is made to the
DONG Energy’s receivables from the disposal of equity invest- description of contingent assets and contingent liabilities in
ments to non-controlling interests total DKK 1.4 billion (2010: note 37.
DKK 1.8 billion). The contracts entered into in connection with
the disposal of equity investments to non-controlling interests The factors taken into account when exercising a judgement
may contain provisions that are contingent on specific future about a potential liability are the nature of the litigation, claim
conditions. The determination of gains and the recognition of or statement. Other factors taken into account are the devel-
receivables are therefore subject to uncertainty. The gains and opment of the case, the judgements and recommendations
receivables recognised are based on management’s estimates of legal or other advisers, experience from similar cases, and
of the most likely outcomes of future events. management’s decision on how the Group will react to the liti-
gation, claim or statement.
Unlisted financial contracts
DONG Energy has concluded financial contracts based on, The Group is a party to various litigation proceedings. The
among other things, oil, gas, electricity and coal that are un- decision as to whether a provision should be made in such
listed and are measured at fair value, including a single long- disputes requires conclusions to be drawn concerning various
term contract that runs until 2020. Fair values are determined factual and legal matters outside the Group’s control. If the
based on fixed valuation models by reference to market data judgements do not reflect the subsequent development or the
and the outlook concerning long-term prices and exchange final outcome of the dispute, this will have a significant impact
rates, etc., each of which is subject to uncertainty. Reference on the Group’s future profits (losses), balance sheet and cash
is made to the information about the fair value hierarchy in flows.
note 33.
Business combinations
Decommissioning obligations No business combinations were recognised in the years 2010
DONG Energy has significant decommissioning obligations, and 2011.
DKK 9.4 billion (2010: DKK 7.1 billion). The estimates of the
Group’s decommissioning obligations are updated on a quar- On acquisitions, the acquiree’s assets, liabilities and contin-
terly basis. gent liabilities are recognised at fair value at the acquisition
date. For a significant part of the assets acquired and liabilities
Decommissioning obligations are affected by changes in ex- assumed, no effective markets exist on the basis of which the
pected decommissioning and restoration costs, the future date fair value can be determined. This applies to intangible assets,
on which the costs will be incurred, and official requirements. in particular. In such cases, fair value is determined using
Expected decommissioning and restoration costs are based models that are based on calculations of present values of
either on examinations carried out by external experts or inter- future cash flows. Management therefore makes estimates in
nal estimates. Estimated costs include a risk premium, based connection with the determination of the fair value of assets,
on experience data. The discount rate applied reflects the gen- liabilities and contingent liabilities acquired. Depending on the
eral risk-free interest rate level in the given market nature of the items, these estimates, and therefore also the fair
values, may be subject to uncertainty and may subsequently
Onerous contracts be adjusted.
In the course of the Group’s operations, a number of com-
mercial contracts have been entered into with fixed terms of

noteS
The excess of the cost of the acquiree over the fair value of the transactions from 1 January 2011. When determining profit for
assets, liabilities and contingent liabilities acquired is recog- the year, fair value adjustments to these derivative financial
nised as goodwill and allocated to the cash-generating units, instruments are therefore recognised in the period in which
which subsequently form the basis for impairment testing. In they arise, regardless of the date of realisation of the hedged
that connection, management makes estimates of acquired transaction. Value adjustments from financial contracts there-
and existing cash-generating units and the associated alloca- fore have a greater impact on the income statement for 2011
tion of goodwill. than in previous years.
Judgements in connection Contracts to which the Group is a party are reviewed to assess
with accounting policies whether they contain any components that are required to be
As part of the Group’s accounting policies, management recognised and measured as separate financial instruments.
makes judgements, apart from those involving estimations, The Group enters into contracts that include price formulas
that may have a significant effect on the consolidated financial that are indexed to various energy prices, commodity indices,
statements. These judgements primarily comprise a) choice etc. Based on a review of these contracts, it has been judged
of recognition methods for exploration assets, b) recognition that the individual components of the contracts feature identi-
and classification of derivative financial instruments and com- cal characteristics and therefore do not differ significantly.
modity contracts, c) classification of hybrid capital, d) jointly Separation of the individual components of the contracts is
controlled assets and entities, and e) business combinations. therefore not required, except in the case of the assessment of
hybrid capital.
Accounting treatment of exploration
When capitalising exploration costs, DONG Energy applies Under IFRS, contracts that involve physical delivery must,
the successful efforts method rather than the full cost method. under certain circumstances, be accounted for as derivative
Accordingly, general exploration costs and costs for unsuc- financial instruments. The classification is determined based
cessful exploration wells are expensed as incurred. DONG on an evaluation of the purpose of the contract compared
Energy will therefore have a lower value of exploration as- with the Group’s other activities. It is generally assumed that
sets than companies that apply the full cost method. At 31 those of the Group’s contracts that are settled on physical de-
December 2011, exploration assets amounted to DKK 1.6 bil- livery do not satisfy the criteria for classification as derivative
lion (2010: DKK 1.0 billion). Depreciation of production assets financial instruments, as they are normal purchase and sale
that have been transferred from exploration assets will also be contracts. By contrast, contracts entered into in the course of
lower when applying the successful efforts method than when the Group’s trading activities or as part of certain hedging ac-
applying the full cost method. tivities are recognised as derivative financial instruments, even
though they are settled on physical delivery.
Accounting treatment of derivative financial
instruments and commodity contracts Accounting treatment of hybrid capital
DONG Energy hedges commodity, currency and interest rate Hybrid capital, DKK 9.5 billion (2010: DKK 8.1 billion), compris-
risks. These hedging transactions predominantly relate to fu- es issued bonds that have been recognised in a special item
ture income from the sale of oil, gas and electricity, and costs in equity due to the special characteristics of the loan and the
for the purchase of coal, gas and CO2. From and including 1 provisions on compound financial instruments. Accordingly,
January 2011, new and existing commodity hedge transactions any coupon payments are accounted for as dividends that
and related foreign currency exposures are no longer account- are recognised directly in equity at the time the payment
ed for as cash flow hedge accounting. obligation arises. This is because the coupon payments are
discretionary and relate to the part of the hybrid capital that
As part of its financial risk management, the Group enters into is recognised in equity. Coupon payments consequently do
transactions to hedge certain physical and financial risks in oil, not have any effect on profit for the year and are recognised in
gas, coal, electricity, CO2 and related currency exposures. The financing activities in the statement of cash flows in the same
Group considers the hedging transactions entered into on the way as dividend payments.
basis of its internal processes for optimisation of its purchase,
sale and consumption of oil, gas, coal, electricity and CO2, as Jointly controlled assets and entities
effective economic hedges. Some of the hedging transactions DONG Energy has opted to recognise the Group’s jointly
will meet IAS 39’s criteria for cash flow hedge accounting, controlled assets and entities using proportionate consolida-
while others will not. For this reason, the Group has elected to tion. These primarily comprise oil and gas exploration and
no longer apply the provisions on hedge accounting to these production licences, and wind farms and power stations. New

02
notes
Critical accounting estimates and judgments
international financial reporting standards (IFRS 10 and 11) re- agreements, which determine the extent to which control of
lating to consolidation and jointly controlled assets will become the acquiree has been transferred. The classification is impor-
effective from and including 2013. The new standards mean tant, as the recognition of proportionately consolidated jointly
that the option to apply proportionate consolidation to jointly controlled entities has a different effect on the financial state-
controlled entities will cease in some cases. In such cases, profit ments than full consolidation of a subsidiary or recognition of
must instead be presented as one aggregate amount, in the an associate using the equity method.
same way as the share of profit (loss) of associates. In the bal-
ance sheet, assets and liabilities relating to jointly controlled No business combinations were recognised in 2010 and 2011.
entities must also be presented as a net amount in future, like
investments in associates. This will mainly affect property, plant Transactions with non-controlling interests are accounted for as
and equipment. The new standards are expected to have a lim- transactions with the group of owners. If the acquisition of further
ited effect on DONG Energy’s financial statements. ownership interests in a subsidiary results in a difference between
the purchase price and the carrying amount of the acquired
Business combinations non-controlling interest, the difference is taken directly to equity.
In connection with acquisitions, the Group makes judgements Gains and losses on disposal of equity investments to non-con-
of the contracts concluded in order to determine whether trolling interests are also recognised in equity to the extent that
the acquiree should be classified as a subsidiary, a jointly the sale does not result in a loss of control. The determination of
controlled entity or an associate. Such judgements are made whether a sale results in a loss of control relies on judgements on
on an acquisition-by-acquisition basis based on purchase a case-by-case basis based on contracts concluded.
contracts concluded, shareholders’ agreements and similar
03 Segment information
Segmentation reporting, are directly attributable to the individual segment

Management has defined the Group’s operating segments based or can be indirectly allocated to the individual segment on a
on the reporting regularly presented to the Group Executive reliable basis. Other activities primarily comprise income and
Management, and which forms the basis for management’s expense, assets and liabilities, investing activities, income taxes,
strategic decisions. The Group Executive Management adopts a etc., relating to the Group’s administrative functions and certain
product-driven approach to the management of activities, man- initial stages of research and development that do not relate to
aging each segment differently from a commercial point of view. the Group’s primary activities.
With effect from 1 January 2011, DONG Energy has elected to no The Group operates with two performance measures, with
longer apply the provisions on cash flow hedge accounting for EBITDA as the primary performance measure and EBIT as the
certain derivative financial instruments, see note 40 in the com- secondary performance measure. For definitions of gross invest-
plete annual report. Accordingly, IFRS no longer reflects the way ments, net working capital and capital employed, reference is
in which management manages the business, and the Group’s made to the explanations of these terms. Intersegment transac-
internal management reporting has therefore been adjusted by tions are priced on arm’s length terms.
the implementation of business performance results. The com-
parative figures for 2010 have been restated accordingly. Reportable segments comprise the following products and
services:
Adjustments between business performance and IFRS consist
of timing differences relating to movements in the market value • Exploration & Production: Oil and gas exploration and pro-
of contracts, including hedging transactions, that are deferred to duction in Denmark, Norway, the UK, the Faroe Islands and
the period in which they are to be recognised. The adjustments Greenland as well as an ownership interest in the Gassled
column will accumulate to nil over time. natural gas pipeline network connecting the Norwegian
fields with the European continent and the UK.
Segment income, segment expense, segment assets and seg-
ment liabilities are those items that, in the internal management

noteS
• Wind Power: Development, construction and operation of Geographical breakdown
wind farms in Denmark, the UK, Poland, Norway, Sweden and DONG Energy primarily sells products and services in the market
Germany as well as an ownership interest in a hydro electric in Northern Europe. A large part of the Group’s sales takes place
station in Sweden. via power exchanges and gas hubs in Europe, the physical loca-
tion of which does not reflect the Group’s market risks. Segment
• Thermal Power: Generation and sale of electricity and heat information in respect of geographical markets is determined
from thermal power stations in Denmark as well as owner- by breaking revenue down, as far as possible, by customer loca-
ship of gas-fired power stations in the Netherlands and the tion based on supply point. When delivery is made directly from
UK and a demonstration plant for production of second- production platforms in the North Sea, the final supply point is
generation bioethanol in Denmark. not known to DONG Energy. In such cases, customer location is
defined on the basis of invoicing address.
• Energy Markets: Optimisation and risk management of
DONG Energy’s energy portfolio, including trading in natu- Non-current assets are broken down geographically based on
ral gas and electricity with energy producers and wholesale the physical location of the assets and comprise intangible as-
customers and on European energy hubs and exchanges. sets and property, plant and equipment.
• Sales & Distribution: Sales and distribution of electric- No single customer accounts for more than 10% of consolidated
ity and gas to wholesale and end customers in Denmark, revenue.
Germany, the Netherlands and Sweden.
Reference is made to note 4 for a breakdown of the Group’s sales
Further details of the Group’s reportable segments are given in by products and services.
Management’s review.
Activities 2011
Energy Markets
Thermal Power
Exploration &
Reportable
Distribution
Wind Power
Production
segments
Sales &
DKK million
External revenue 5,784 3,589 9,711 25,320 12,504 56,908

Intragroup revenue 4,685 723 954 8,369 505 15,236
Revenue 10,469 4,312 10,665 33,689 13,009 72,144
EBITDA 5,684 1,799 2,255 1,963 2,027 13,728

Depreciation and amortisation (2,480) (943) (1,562) (585) (1,184) (6,754)
Impairment losses - - 59 (600) (277) (818)
Operating profit (EBIT) 3,204 856 752 778 566 6,156
Adjusted operating profit 1 1,628 861 720 751 584 4,544
1
Adjusted operating profit is defined as EBIT corrected for hydrocarbon tax plus profit of associates less the interest element of decommissioning
obligations.

03
notes
Segment information
Activities 2011 – continued
Other activities
performance
Adjustments
Eliminations
Reportable
segments
Business
IFRS
DKK million
External revenue 56,908 (66) - 56,842 1,595 58,437

Intragroup revenue 15,236 2,261 (17,497) 0 - 0
Revenue 72,144 2,195 (17,497) 56,842 1,595 58,437
EBITDA 13,728 42 - 13,770 1,825 15,595

Depreciation and amortisation (6,754) (98) - (6,852) - (6,852)
Impairment losses (818) - - (818) - (818)
Operating profit (EBIT) 6,156 (56) 0 6,100 1,825 7,925
Adjusted operating profit 4,544 (100) 0 4,444 1,825 6,269

Energy Markets
Other activities
Thermal Power
Exploration &
Eliminations
Reportable
Distribution
Wind Power
Production
segments
Sales &
IFRS
DKK million
Net working capital, external

transactions (951) (2,767) 299 2,717 965 263 (463) 19 (181)
Net working capital, intragroup
transactions 808 (53) (199) (175) (698) (317) 336 (19) 0
Net working capital (143) (2,820) 100 2,542 267 (54) (127) 0 (181)
Gross investments (5,626) (10,872) (714) (333) (810) (18,355) (96) - (18,451)
Segment assets 33,087 48,027 33,155 32,625 22,197 169,091 78,275 (93,493) 153,873
Capital employed 18,186 29,443 17,882 6,553 10,944 83,008 (1,653) - 81,355
Adjusted capital employed 1
7,859 13,733 13,785 6,420 9,967 51,764 (1,574) - 50,190
1
Adjusted capital employed is defined as capital employed less property, plant and equipment under construction and exploration assets, and less
production assets transferred from property, plant and equipment under construction in the past six months.
Oil and gas exploration expenditure of DKK 997 million has DKK 395 million respectively on 31 December 2011. Operating
been recognised in Exploration & Production. Oil and gas ex- and investing cash flows arising from oil and gas exploration
ploration assets and liabilities amounted to DKK 2,758 million absorbed DKK 2,108 million and DKK 984 million respectively.
and

noteS
Geographical breakdown 2011
Rest Consoli-
DKK million Denmark UK Germany Netherlands of World dated total
Revenue 28,646 13,512 8,222 3,747 4,310 58,437
Rest Consoli-
DKK million Denmark UK Norway of World dated total
Intangible assets and property, plant

and equipment 42,428 31,860 17,930 5,021 97,239
Activities 2010
Energy Markets
Thermal Power
Exploration &
Distribution
Wind Power
Reportable
Production
segments
Sales &
DKK million
External revenue 5,016 2,510 11,564 21,971 13,739 54,800

Intragroup revenue 3,248 442 167 9,545 446 13,848
Revenue 8,264 2,952 11,731 31,516 14,185 68,648
EBITDA 5,051 1,730 2,228 2,959 2,036 14,004

Depreciation and amortisation, exclud-
ing purchased CO2 emissions allowances (1,950) (771) (1,270) (565) (970) (5,526)
Impairment losses - - (401) - (9) (410)
Operating profit (EBIT) 3,101 959 557 2,394 1,057 8,068
Adjusted operating profit 2,036 979 511 2,386 1,072 6,984

Other activities
performance
Adjustments
Eliminations
Reportable
segments
Business
IFRS
DKK million
External revenue 54,800 (184) - 54,616 (18) 54,598

Intragroup revenue 13,848 1,780 (15,628) 0 - 0
Revenue 68,648 1,596 (15,628) 54,616 (18) 54,598
EBITDA 14,004 131 - 14,135 (46) 14,089

Depreciation and amortisation, exclud-
ing purchased CO2 emissions allowances (5,526) (79) - (5,605) - (5,605)
Impairment losses (410) - - (410) - (410)
Operating profit (EBIT) 8,068 52 0 8,120 (46) 8,074
Adjusted operating profit 6,984 1 0 6,985 (46) 6,939

03
notes
Segment information
Activities 2010 – continued
Energy Markets
Other activities
Thermal Power
Exploration &
Eliminations
Distribution
Wind Power
Reportable
Production
segments
Sales &
IFRS
DKK million
Net working capital, external

transactions (430) (420) 163 2,162 1,953 3,428 (983) 21 2,466
Net working capital, intragroup
transactions 1,099 (49) 28 557 (1,611) 24 (3) (21) 0
Net working capital 669 (469) 191 2,719 342 3,452 (986) 0 2,466
Gross investments (4,023) (6,378) (3,853) (477) (858) (15,589) (103) - (15,692)
Segment assets 29,026 35,203 33,522 30,745 22,423 150,919 60,141 (74,152) 136,908
Capital employed 17,122 21,097 19,085 4,327 12,064 73,695 (247) - 73,448
Adjusted capital employed 9,373 12,822 10,144 4,221 11,046 47,606 (1,300) - 46,306
Oil and gas exploration expenditure of DKK 420 million has Operating and investing cash flows arising from oil and gas
been recognised in Exploration & Production. Oil and gas exploration absorbed DKK 625 million and DKK 346 million
exploration assets and liabilities amounted to DKK 1,404 mil- respectively.
lion and DKK 371 million respectively at 31 December 2010.
Geographical breakdown 2010
Rest Consoli-
DKK million Denmark UK Germany Netherlands of World dated total
Revenue 31,364 6,226 7,364 6,319 3,325 54,598
Rest Consoli-
DKK million Denmark UK Norway of World dated total
Intangible assets and property, plant and

equipment 43,348 16,809 18,916 4,363 83,436

noteS
Reconciliations
DKK million 2011 2010
EBITDA for reportable segments 13,728 14,004

Depreciation, amortisation and impairment losses for reportable segments,
excluding purchased CO2 emissions allowances (7,572) (5,936)
EBIT for reportable segments 6,156 8,068
EBIT other activities (56) 52
EBIT business performance 6,100 8,120
Adjustments (from business performance to IFRS) 1,825 (46)
EBIT IFRS, see consolidated statement of comprehensive income, page 60 7,925 8,074
Gain on disposal of enterprises 225 905
Share of profit of associates 36 77
Net finance costs (282) (1,595)
Profit before tax, see consolidated statement of comprehensive income, page 60 7,904 7,461
Segment assets for reportable segments 169,091 150,919

Assets, other activities 78,275 60,141
Assets, eliminations (93,493) (74,152)
Deferred tax 181 404
Income tax receivable 19 27
Total assets, see consolidated balance sheet, page 62 154,073 137,339
04 Revenue
Business performance IFRS
DKK million 2011 2010 2011 2010
Sales and transportation of natural gas 23,308 23,464 24,993 23,464

Sales and transportation of oil 5,769 4,356 5,769 4,356
Sales of electricity 16,376 15,217 15,757 14,981
Sales of district heat 2,532 2,701 2,532 2,701
Distribution and storage of natural gas 1,387 1,210 1,387 1,210
Distribution of electricity 3,281 3,444 3,281 3,444
Construction contracts 483 469 483 469
Trading activities, net 633 478 633 478
Effect of economic hedges, net 38 723 897 (111)
Effect of hedge accounting, net - - (330) 1,052
Other revenue 3,035 2,554 3,035 2,554
Revenue 56,842 54,616 58,437 54,598

05
notes
Fuel and energy
Business performance IFRS
DKK million 2011 2010 2011 2010
Natural gas (17,540) (17,850) (17,540) (17,850)

Electricity (5,466) (5,023) (5,466) (5,023)
Coal (2,000) (1,982) (2,000) (1,982)
Biomass (1,256) (1,343) (1,256) (1,343)
Oil (220) (320) (220) (320)
Transportation costs, etc. (3,320) (3,609) (3,320) (3,609)
Economic hedging (32) (208) 157 (364)
Hedge accounting - - 41 128
Costs associated with construction
contracts (223) - (223) -
Other cost of sales (1,548) (1,073) (1,548) (1,073)
Fuel and energy (31,605) (31,408) (31,375) (31,436)
06 Staff costs
Wages, salaries and remuneration (3,669) (3,246)

Pensions (312) (295)
Other social security costs (83) (66)
Other staff costs (39) (36)
Staff costs before transfer to assets (4,103) (3,643)

Transfer to assets 510 697
Staff costs (3,593) (2,946)
The Group’s pension plans are primarily defined contribution over from municipally owned regional companies. In 2011,
plans that do not commit DONG Energy beyond the amounts these obligations amounted to DKK 15 million (2010: DKK 22
contributed. The defined benefit plans relate to obligations to million). The average number of employees in DONG Energy in
pay a defined benefit to a few power station employees that 2011 was 5,966 (2010: 5,800 employees).
are no longer with the company and to public servants taken

noteS
Remuneration of Board of Directors, Executive Board and other senior executives in 2011
DKK ‘000 Salaries Bonus Pension Total
Parent company Board of Directors:

Chairman (500) - - (500)
Deputy Chairman (300) - - (300)
Other members1 (1,838) - - (1,838)
Audit and Risk Committee:

Chairman (100) - - (100)
Other members2 (138) - - (138)
Remuneration Committee:
Chairman (50) - - (50)
Other member (44) - - (44)
Executive Board and other senior

executives in the Group:
CEO (5,006) (1,084) (2) (6,092)
CFO (4,565) (1,141) (2) (5,708)
Other senior executives in the Group (12,956) (3,014) (1,931) (17,901)
Remuneration (25,497) (5,239) (1,935) (32,671)
1
Annual remuneration was DKK 175 thousand per member in 2011.
2
At 31 December 2011, the Executive Board and other senior ex- The service contract of the CEO includes a termination pack-
ecutives consisted of six persons in total (2010: six persons). age under which he will be entitled to salary equivalent to
33½ months’ salary, including pension, if his service contract
DONG Energy has prepared a remuneration policy for the is terminated by the company (2010: 33½ months) consisting
remuneration of the Board of Directors and for the Executive of salary during the notice period (12 months) and termination
Board registered with the Danish Business Authority, and benefit (21½ months).
overall guidelines for incentive pay for these officers were
adopted at DONG Energy’s Annual General Meeting in January The CFO and the Group’s other senior executives will be en-
2008. Both the remuneration policy and the overall guidelines titled to 24 months’ salary, including pension, if their contracts
for incentive pay can be viewed on DONG Energy’s website. of service are terminated by the company (2010: 24 months)
consisting of salary during the notice period (12 months) and
Remuneration of the Board of Directors and of the Executive termination benefit (12 months).
Board registered with the Danish Business Authority complied
with the remuneration policy and the overall guidelines for Further details of the Group Executive Management are pro-
incentive pay in 2011. vided in the Corporate governance sections on pages 52-53
and the section on the Board of Directors and the Group Ex-
ecutive Management on pages 56-60 of Management’s review.

06
notes
Staff costs
Remuneration of Board of Directors, Executive Board and other senior executives in 2010
DKK ‘000 Salaries Bonus Pension Total
Parent company Board of Directors:

Chairman (500) - - (500)
Deputy Chairman (300) - - (300)
Other members1 (1,706) - - (1,706)
Audit and Risk Committee:

Chairman (100) - - (100)
Other members2 (100) - - (100)
Remuneration Committee:
Chairman (50) - - (50)
Other member (25) - - (25)
Executive Board and other senior

executives in the Group:
CEO (4,822) (827) (2) (5,651)
CFO (4,399) (1,198) (2) (5,599)
Other senior executives in the Group (12,930) (1,889) (1,658) (16,477)
Remuneration (24,932) (3,914) (1,662) (30,508)
1
2
07 Research and development costs
Research and development costs incurred during the year (669) (821)
Amortisation and impairment losses on development costs
recognised in intangible assets (105) (97)
Development costs recognised in intangible assets 48 137
Research and development costs recognised in profit for the year (726) (781)
Research and development costs incurred in 2011 comprised systems. In 2010, research and development costs primarily
primarily development of wind farms in Denmark, the UK, included development of wind farms in Denmark, development
Germany and Poland, development of bioethanol technol- of thermal generation, bioethanol technology and IT systems.
ogy, biogas technology and biomass conversion as well as IT

08
noteS
Fee to auditor appointed at the Annual General Meeting
Audit fees (12) (12)

Other assurance engagements (2) (1)
Tax and VAT advice (7) (6)
Non-audit services (30) (7)
Total fees to PricewaterhouseCoopers (51) (26)
09 Other operating income and expenses
Gain on sale of intangible assets and property, plant and equipment 165 184
Miscellaneous operating income 115 111
Other operating income 280 295
Loss on sale of intangible assets and property, plant and equipment (229) (46)
Miscellaneous operating expenses (41) (11)
Other operating expenses (270) (57)
Other operating income and expenses, net 10 238
The gain on sale of intangible assets and property, plant and on sale of intangible assets and property, plant and equipment
equipment comprised primarily sale of the Gunfleet Sands was attributable to a loss on scrapping of production assets on
and Barrow Offshore Wind offshore wind farm transmission the Gyda oil field. The gain in 2010 comprised primarily Nysted
networks and 50% of the Walney network (Walney 1). The loss Offshore Wind Farm 1.
10 Government grants
Government grants recognised in profit for the year as revenue 311 315
Government grants recognised in profit for the year as other operating income 21 20
Government grants recognised in the balance sheet 4 (15)
Government grants recognised during the year 336 320
Grants recognised as revenue related to electricity generation connection with the establishment of installations and for
based on biomass and waste, and natural gas at small-scale the construction of facilities. Government grants received
power stations. have been recognised in liabilities and transferred to other
operating income as the assets to which the grants relate are
DONG Energy also received grants for feasibility studies in depreciated.

11
notes
Finance income
Interest income from cash, etc. 642 356

Interest income and capital gains on securities at fair value 513 376
Foreign exchange gains 2,815 2,531
Value adjustments of derivative financial instruments 1,818 137
Other finance income 23 7
Finance income 5,811 3,407
12 Finance costs
Interest expense relating to payables (1,921) (2,227)

Transfers to assets 373 328
Interest element of decommissioning obligations (176) (196)
Capital loss on securities at fair value (22) (73)
Foreign exchange losses (2,658) (2,677)
Value adjustments of derivative financial instruments (1,654) (152)
Other finance costs (35) (5)
Finance costs (6,093) (5,002)
Foreign exchange adjustments are recognised in revenue and Borrowing costs transferred to assets under construction were
cost of sales for the year with DKK 340 million (2010: DKK 253 calculated at the weighted average effective interest rate for
million) and in profit for the year with DKK 497 million (2010: general borrowing, which was 4.42% (2010: 4.46%).
DKK 107 million).

13
noteS
Income tax expense
Income tax expense (3,654) (2,997)

Tax on other comprehensive income 169 590
Tax for the year (3,485) (2,407)
Tax for the year can be broken down as follows:

Current tax (income tax and hydrocarbon tax) calculated applying normal tax rates (1,218) (1,145)
Current tax, hydrocarbon tax calculated applying higher tax rate (1,076) (568)
Deferred tax, calculated applying normal tax rates (1,021) (810)
Deferred tax, hydrocarbon tax calculated applying higher tax rate (439) (448)
Effect of reduction of income tax rate (4) 1
Adjustments to current tax in respect of prior years 85 (65)
Adjustments to deferred tax in respect of prior years 19 38
Income tax expense (3,654) (2,997)
2011 DKK million %
Income tax expense can be explained as follows:

Calculated 25% tax on profit before tax (1,976) 25
Adjustments of calculated income tax in foreign subsidiaries in relation to 25% (92) 1
Hydrocarbon tax (1,515) 19
Tax effect of:
Non-taxable income 107 (2)
Capitalisation of tax assets not previously capitalised 77 (1)
Non-deductible expenses (161) 2
Unrecognised tax assets (126) 2
Effect of reduction of income tax rate (4) -
Share of profit of associates 9 -
Adjustments to tax in respect of prior years 27 -
Effective tax for the year (3,654) 46
2010 DKK million %
Income tax expense can be explained as follows:

Calculated 25% tax on profit before tax (1,865) 25
Adjustments of calculated income tax in foreign subsidiaries in relation to 25% (62) 1
Hydrocarbon tax (1,017) 14
Tax effect of:
Non-taxable income 283 (4)
Capitalisation of tax assets not previously capitalised (26) -
Non-deductible expenses (256) 3
Unrecognised tax assets (73) 1
Share of profit of associates 19 -
Effective tax for the year (2,997) 40

14
notes
Earnings per share
Profit for the year 4,250 4,464

Coupon on hybrid capital after tax (269) (334)
Attributable to non-controlling interests (185) 107
Attributable to DONG Energy Group 3,796 4,237
Average number of shares of DKK 10 293,709,900 293,709,900

Earnings per share (EPS) and diluted earnings per share (DEPS) of DKK 10, in DKK 12.92 14.43
15 Intangible assets
Completed devel-
In-process devel-
opment projects
opment projects
CO2 emissions
allowances
Goodwill
Rights
Total
DKK million
Cost at 1 January 2011 651 3,198 476 995 21 5,341

Foreign exchange adjustments (1) (1) - - 2 0
Additions - 86 652 15 34 787
Disposals - (26) (201) - (3) (230)
Transfers - 22 - 13 (32) 3
Cost at 31 December 2011 650 3,279 927 1,023 22 5,901
Amortisation and impairment losses

at 1 January 2011 - (1,658) (294) (638) - (2,590)
Amortisation, disposals - 26 201 - - 227
Amortisation charge - (351) - (106) - (457)
Impairment charge (277) (73) - - - (350)
Transfers - (2) - - - (2)
at 31 December 2011 (277) (2,058) (93) (744) 0 (3,172)
Carrying amount at 31 December 2011 373 1,221 834 279 22 2,729

noteS
Completed devel-
In-process devel-
opment projects
opment projects
CO2 emissions
allowances
Goodwill
Rights
Total
DKK million
Cost at 1 January 2010 663 3,163 597 827 144 5,394

Foreign exchange adjustments 1 - 29 - - 30
Adjustments relating to acquisition of enterprises (13) - - - - (13)
Additions - - 384 6 131 521
Disposals - (4) (187) (34) (7) (232)
Transfers - 39 - 196 (235) 0
Reclassifications - - (347) - (12) (359)
Cost at 31 December 2010 651 3,198 476 995 21 5,341

at 1 January 2010 - (1,474) (186) (582) - (2,242)
Foreign exchange adjustments - - - 1 - 1
Amortisation, disposals - - 187 29 - 216
Amortisation charge - (184) (202) (86) - (472)
Impairment charge - - (93) - - (93)
at 31 December 2010 0 (1,658) (294) (638) 0 (2,590)
Carrying amount at 31 December 2010 651 1,540 182 357 21 2,751
Impairment testing Acquired enterprises are established either as new activities or

Goodwill and in-process development projects are tested for are integrated as quickly as possible with existing activities to
impairment annually. The carrying amounts of rights, CO2 utilise potential synergies. For acquisitions that are not estab-
emissions allowances and completed development projects lished as separate activities the implication of this is that, after
are assessed annually to determine whether there is any indi- a short time, it will no longer be possible to allocate the carry-
cation of impairment. If any such indication exists, an impair- ing amount of goodwill to the acquirees on a reasonable and
ment test is carried out. consistent basis, and it will therefore no longer be possible to
test goodwill from each acquisition for impairment.
In an impairment test, the asset’s recoverable amount is
compared with its carrying amount. An impairment loss is rec- The recoverable amount of CGUs is determined as a value in
ognised whenever the carrying amount of an asset or its cash- use, where net cash flows are determined on the basis of busi-
generating unit (CGU) exceeds its recoverable amount. ness plans and budgets that have been approved by manage-
ment. For some CGUs, value in use is determined on the basis
The recoverable amount of an intangible asset is the higher of a definite period of years, while, for other CGUs, a terminal
of its fair value less expected disposal costs and the present value after the budget period is determined based on the gen-
value of the expected future net cash flows (value in use). eral growth outlook for the relevant markets. Net cash flows
have been discounted using a discount rate before tax that
Goodwill reflects the cost of capital associated with the activity.
Testing for impairment is carried out for the business areas or
activities that represent the lowest level of CGUs to which the The goodwill allocation for each CGU and significant assump-
carrying amount of goodwill can be allocated on a reasonable tions applied in connection with the impairment tests carried
and consistent basis. out are set out below:

15
notes
Intangible assets
2011
Central Energy
power stations A2SEA Markets
Segment Thermal Power Wind Power Energy Markets

Share of consolidated goodwill, in DKK million 125 157 91
Share of consolidated goodwill (%) 34 42 24
Discount rate before tax (%) 8 12 10
Expected growth in net cash flows in terminal period (%) n.a. n.a 2
2010
Central Energy DONG Energy

power stations A2SEA Markets Sales B.V.
Energy Sales &

Segment Thermal power Wind Power Markets Distribution
Share of consolidated goodwill,
in DKK million 125 157 92 277
Share of consolidated goodwill (%) 19 24 14 43
Discount rate before tax (%) 9 11 9 9
Expected growth in net cash flows
in terminal period (%) n.a. n.a. 2 2
In 2011, a goodwill impairment of DKK 277 million was recog- the discount rate. The assumptions on which budgeted utilisa-
nised in respect of DONG Energy Sales B.V. due to changed tion rates are based include the existence of contracts for part
pricing in the Dutch market. of revenue and the setting-up of projects in the immediate
future. Budgeted daily rates are based on evaluation of the
The result of the year’s other impairment tests was that the current level of daily rates and the prices of vessel newbuilds.
recoverable amount exceeded the carrying amount of good- The determination of net cash flows is based on the company’s
will. It was consequently not deemed necessary to write down business plan and expected net cash flows for the period
goodwill further in 2011. 2012-2032.
Central power stations Energy Markets

The main criteria used for determining the recoverable amount Energy Markets optimises DONG Energy’s energy portfolio,
are the green dark spread and the discount rate. The calcula- forming the link between the Group’s procurement and sale of
tion of expected net cash flows is based on the Group’s own energy.
forecasting model, which forecasts net cash flows for the
period 2012-2030. The model is designed so as to take into The main criteria used for determining the recoverable amount
account the history of each power station and the Group’s are oil and gas prices, gross margins, portfolio composition and
experience in power station operation, including useful lives, the discount rate used. The determination of expected net cash
maintenance, etc. flows is based on budgets and forecasts for the period 2012-
2020. The model has been prepared so that account is taken of
A2SEA contract composition during the period and the Group’s portfo-
A2SEA specialises in the construction of offshore wind farms. lio management experience.
The main criteria used for determining the recoverable amount DONG Energy Sales B.V.
are the utilisation rate, daily rates for A2SEA’s vessels, syner- DONG Energy Sales B.V. sells gas and electricity to end users
gies in the installation process for offshore wind turbines and in the Netherlands.

noteS
The main criteria used for determining the recoverable amount CO2 emissions allowances
are gross margins and the discount rate applied. Budgeted CO2 emissions allowances for own use amounted to DKK
gross margins are based on recently realised margins. 834 million (2010: DKK 182 million). There were no indica-
Expected net cash flows have been determined on the basis tions of impairment of CO2 emissions allowances in 2011.
of the company’s business plan and budgets for the period Consequently, these were not tested for impairment. In 2010,
2012-2018. a DKK 93 million impairment loss was recognised in respect of
rights relating to CO2 emissions allowances. The impairment
As mentioned above, a goodwill impairment of DKK 277 mil- loss reflected a change in the Group’s estimate relating to the
lion was recognised, to the effect that the goodwill relating to allocation of CO2 emissions allowances in the Netherlands.
DONG Energy Sales B.V. has been fully written off. The impair- CO2 emissions allowances are recognised in the Thermal
ment was recognised in the Sales & Distribution segment. Power segment.
Rights Completed development projects

Rights consist predominantly of gas purchase rights and Completed development projects relate primarily to IT software
a connection right relating to gas transportation. At 31 and development of technical solutions, for example for the
December 2011, the carrying amount of gas purchase electricity grid. The carrying amount of completed development
rights was calculated at DKK 768 million (2010: DKK projects was DKK 279 million at 31 December 2011 (2010: DKK
875 million) and the carrying amount of the connection 357 million).
right at DKK 170 million (2010: DKK 292 million).
There were no indications of impairment of completed de-
In June 2011, the Danish Energy Regulatory Authority (DERA) velopment projects. Consequently, these were not tested for
declared that the tariff for DONG Energy’s gas pipelines must impairment.
only amount to DKK 0.07/m3 compared with the current tariff
of DKK 0.13/ m3. As a consequence of this, in 2011, a DKK 73 In-process development projects
million impairment loss was recognised on the connection In-process development projects are tested annually for
right relating to gas transportation and DKK 527 million on impairment.
the offshore gas pipelines from the North Sea to Denmark
(recognised in production assets). The impairment loss In-process development projects relate primarily to the im-
reflects a reduction of the tariff to DKK 0.10/m3, equivalent plementation of new IT systems. The carrying amount of in-
to the tariff reduction offered by DONG Energy to DERA. The process development projects stood at DKK 22 million at 31
impairment was recognised in the Energy Markets segment. December 2011 (2010: DKK 21 million).
There were no other indications of impairment The Group tested the carrying amounts of recognised in-pro-
of rights in 2011. Consequently, no further cess development projects for impairment in 2011. The result
impairment testing of rights was carried out. of the year’s other impairment tests was that the recoverable
amount exceeded the carrying amount of in-process develop-
ment projects. It was consequently not deemed necessary to
write down in-process development projects.

16
notes
Property, plant and equipment
Property, plant and

fittings, tools and
equipment under
construction
Fixtures and
Exploration
Production
equipment
buildings
Land and
assets
assets
Total
DKK million
Cost at 1 January 2011 3,507 86,249 975 482 19,161 110,374

Foreign exchange adjustments 1 472 39 - 466 978
Additions 126 3,339 1,073 79 17,490 22,107
Disposals (54) (322) (476) (16) (188) (1,056)
Transfers to assets classified as held for sale (25) (1,642) - (5) (120) (1,792)
Transfers 1,521 12,073 - 158 (13,755) (3)
Cost at 31 December 2011 5,076 100,169 1,611 698 23,054 130,608
Depreciation and impairment losses

at 1 January 2011 (648) (28,747) - (277) (17) (29,689)
Foreign exchange adjustments - (64) - - - (64)
Depreciation and impairment losses, disposals 1 34 - 10 - 45
Depreciation charge (199) (6,115) - (81) - (6,395)
Impairment charge - (527) - - - (527)
Impairment losses reversed - 59 - - - 59
Transfers to assets classified as held for sale 2 466 - 3 - 471
Transfers (90) 163 - (71) - 2

at 31 December 2011 (934) (34,731) 0 (416) (17) (36,098)
Carrying amount at 31 December 2011 4,142 65,438 1,611 282 23,037 94,510

noteS
Property, plant and
fittings, tools and
equipment under
construction
Fixtures and
Exploration
Production
equipment
buildings
Land and
assets
assets
Total
DKK million
Cost at 1 January 2010 3,482 74,257 2,997 473 13,043 94,252

Foreign exchange adjustments 2 1,426 49 - 433 1,910
Additions 20 2,840 386 12 13,046 16,304
Disposals (27) (744) (100) (13) (196) (1,080)
Transfers to assets classified as held for sale (4) (1,046) - (1) (1) (1,052)
Transfers 6 9,516 (2,357) 11 (7,176) 0
Reclassifications 28 - - - 12 40
Cost at 31 December 2010 3,507 86,249 975 482 19,161 110,374

at 1 January 2010 (469) (23,430) - (206) (17) (24,122)
Foreign exchange adjustments - (324) - (1) - (325)
Depreciation, disposals 11 171 - 13 - 195
Depreciation charge (141) (5,111) - (84) - (5,336)
Impairment charge (23) (294) - - - (317)
Transfers to assets classified as held for sale 2 241 1 - 244
Reclassifications (28) - - - - (28)

at 31 December 2010 (648) (28,747) 0 (277) (17) (29,689)
Carrying amount at 31 December 2010 2,859 57,502 975 205 19,144 80,685
Impairment testing amount, and no impairment losses were therefore recognised on

DONG Energy tests property, plant and equipment for im- the Group’s producing oil and gas fields in 2011.
pairment if there is any indication of impairment.
The main criteria used for determining the recoverable amount
In an impairment test, the asset’s recoverable amount is are the expectations concerning reserves, oil and gas prices,
compared with its carrying amount. An impairment loss is exchange rates and discount rates.
recognised whenever the carrying amount of an asset or its
cash-generating unit (CGU) exceeds its recoverable amount. Electricity distribution network
The electricity distribution network was tested for impairment
The recoverable amount of property, plant and equipment in 2011. The electricity distribution network is recognised in the
is the higher of the assets’ fair value less expected disposal Sales & Distribution segment.
costs and the present value of the expected future net cash
flows (value in use). Based on the impairment testing of the electricity distribution
network, it is estimated that the recoverable amount exceeds
Production assets the carrying amount. No impairment loss was consequently rec-
Oil and gas fields ognised on the Group’s electricity distribution network in 2011.
Producing oil and gas fields in the Exploration & Production The main criteria in connection with the determination of the
segment were tested for impairment in 2011. Based on the recoverable amount are the regulatorily permitted return, dis-
impairment testing of oil and gas-producing fields, it was es- count rates, expected volume of transported kWh, operation and
timated that the recoverable amount exceeded the carrying maintenance as well as the associated investment level.

16
notes
Property, plant and equipment
Other production assets Significant parameters in connection with the determination of

As described under rights in note 15, a DKK 527 million impair- the recoverable amount of exploration assets are expectations
ment loss was recognised on the offshore gas pipelines from the concerning reserves, oil and gas prices, exchange rates and
North Sea to Denmark in 2011. The impairment was recognised discount rates.
in the Energy Markets segment.
There were no indications of impairment in 2011, and no
Other significant production assets were tested for impairment, impairment losses were therefore recognised in 2011 on the
including primarily power stations and wind farms. It is esti- Group’s exploration assets.
mated that the recoverable amount of other production assets
exceeds the carrying amount, and no impairment losses were Property, plant and equipment under construction
consequently recognised in respect of other production assets. Significant items of property, plant and equipment under
construction, including wind farms and oil and gas fields, were
In 2010, a DKK 317 million impairment loss was recognised, in- tested for impairment. It is estimated that the recoverable
cluding DKK 299 million in respect of small-scale power stations. amount of property, plant and equipment under construction
Part of this impairment loss related to the small-scale Maribo- exceeds the carrying amount.
Sakskøbing CHP plant, which was subsequently sold in 2011.
Therefore, of the impairment loss recognised in 2010, DKK 59 Other property, plant and equipment
million has been reversed. The carrying amounts of other property, plant and equipment
are assessed annually to determine whether there is any indi-
Exploration assets cation of impairment. If any such indication exists, an impair-
Exploration assets are tested for impairment when sufficient ment test is carried out.
data have been obtained to assess each asset’s technical
and commercial potential and if there is any indication of Based on the impairment testing of other property, plant
impairment. Impairment testing is also carried out at the and equipment, it is estimated that the recoverable amount
time commercial finds of oil and/or gas have been identified, exceeds the carrying amount. No impairment losses were con-
and when exploration assets are reclassified to assets under sequently recognised in 2011 in respect of the Group’s other
construction. property, plant and equipment.

17
noteS
Associates and other securities
Investments in associates Other equity investments Other securities
DKK million 2011 2010 2011 2010 2011 2010
Cost at 1 January 3,317 4,143 517 269 - 1,173

Foreign exchange adjustments 5 7 - - - -
Additions 133 57 63 248 - 130
Disposals - - (19) - - (1,303)
Disposal on disposal of associates - (1,103) - - - -
Capital contributions 259 232 - - - -
Capital reductions (9) - - - - -
Transfers to assets classified as held for sale - (19) - - - -
Cost at 31 December 3,705 3,317 561 517 0 0
Value adjustments at 1 January (398) (538) (143) (68) - -

Foreign exchange adjustments 17 309 - - - -
Share of profit for the year 36 77 - - - -
Disposal on disposal of associates - (196) - - - -
Dividends received (51) (59) - - - -
Impairment charge - - - (75) - -
Value adjustments carried directly in equity
of associates (83) - - - - -
Transfers to assets classified as held for sale - 9 - - - -
Value adjustments at 31 December (479) (398) (143) (143) 0 0
Carrying amount at 31 December 3,226 2,919 418 374 0 0
Investments in associates include rights with indefinite useful are measured at the lower of cost and recoverable amount, as
lives. These rights have been tested for impairment. There was the fair value of the assets cannot be determined reliably.
deemed to be no need to write down rights with indefinite useful
lives in 2011 and 2010. No impairment losses were charged in respect of other equity
investments in 2011. In 2010, DONG Energy recognised a DKK
Other equity investments comprise investments in unlisted se- 75 million impairment loss on the Group’s participation in devel-
curities classified as assets available for sale. The investments opment project companies.

17
notes
Associates and other securities
Revenue 2,134 4,867

Profit 144 313
Profit attributable to DONG Energy 36 77
Assets 13,470 13,417

Liabilities 1,344 2,324
Equity 12,126 11,093
Equity attributable to DONG Energy 3,226 2,919
The accounting figures disclosed in the note have been deter- an overview of the Group’s ownership interests in associates,
mined on the basis of the recognised values in the Group. For reference is made to note 42 in the complete annual report.
18 Inventories
Raw materials and consumables 96 102

Fuel 1,158 1,125
Natural gas and crude oil 2,179 1,118
CO2 emissions allowances 79 513
Green certificates 726 230
Other inventories 6 3
Inventories at 31 December 4,244 3,091
The bulk of the inventories is expected to be used within one year.

19
noteS
Receivables
Receivables from associates 546 542

Receivables from jointly controlled entities 328 12
Receivables from the disposal of activities 108 103
Receivables from the disposal of equity investments to non-controlling interests 185 76
Assets held under finance leases 2.056 2.027
Other receivables 91 102
Non-current receivables at 31 December 3.314 2.862
Trade receivables 7.634 9.451

Receivables from associates 11 2
Receivables from jointly controlled entities 542 259
Receivables from the disposal of activities 101 131
Receivables from the disposal of equity investments to non-controlling interests 1.160 1.664
Receivable capital contributions from non-controlling interests 2.103 2.212
Assets held under finance leases 38 73
Fair value of derivative financial instruments, see note 33 16.060 14.461
Deposits 246 102
Construction contracts, see note 20 41 61
Other receivables 4.556 3.198
Current receivables at 31 December 32.492 31.614
Current and non-current receivables at 31 December 35.806 34.476
Other receivables include VAT, other indirect taxes, prepay- Further details of credit risks associated with receivables are
ments, etc. disclosed in the Credit risks section in the Risk and risk man-
agement chapter in Management’s review, pages 44-51, and
Apart from the fair value of derivative financial instruments, in note 32.
current receivables fall due within one year of the close of the
financial year. The remaining maturity of derivative financial
instruments appears from note 33.

19
notes
Receivables
Assets held under finance leases with DONG Energy as lessor
2011 2010
Minimum Minimum
Present lease Present lease
DKK million value Interest income value Interest income
0 - 1 year 38 (120) 158 73 (122) 195

1 - 5 years 207 (454) 661 183 (466) 649
More than 5 years 1,849 (902) 2,751 1,844 (1,069) 2,913
Assets held under finance

leases 2,094 (1,476) 3,570 2,100 (1,657) 3,757
Assets held under finance leases with DONG Energy as the The present value of the lease has been calculated applying
lessor comprise a gas-fired power station constructed for Sta- the interest rate implicit in the lease. There is no contingent
toil in Mongstad in Norway. The lease has a 20-year term, but rent under the lease.
includes an option for two five-year extensions.
Receivables that are past due but not individually impaired
Days past due:

Up to 30 days 442 653
30 - 90 days 108 92
More than 90 days 715 173
General write-offs (152) (148)
Trade receivables that are past due but not individually impaired 1,113 770
General write-downs on trade receivables are assessed on the The Group’s trade receivables at 31 December 2011 include re-
basis of due date and historical experience. Write-downs are ceivables totalling DKK 26 million (2010: DKK 171 million) that
recorded on a summary account. have been written down to DKK 11 million following individual
assessment (2010: DKK 130 million). The individual write-
down on trade receivables was DKK 15 million (2010: DKK 41
million).
Movements in general and individual write-downs
Write-downs at 1 January 189 183

Write-downs for the year 60 72
Reversal of previous write-downs (6) (3)

Receivables written off (76) (63)
Write-downs at 31 December 167 189

20
noteS
Construction contracts
Selling price of construction contracts 481 43

Progress billings (901) -
Net value of construction contracts at 31 December (420) 43
Which can be broken down as follows:

Construction contracts (assets) 41 61
Construction contracts (liabilities) (461) (18)
Net value of construction contracts at 31 December (420) 43
Selling price and progress billings at 31 December 2011 relate Construction contracts are recognised as receivables, see note
primarily to the construction of 50% of Anholt offshore wind 19, and payables, see note 25.
farm, which is owned by external parties. The offshore wind
farm is scheduled for completion and start-up in autumn 2013.
21 Assets classified as held for sale
Property, plant and equipment 320 805

Other non-current assets - 13
Non-current assets 320 818

Current assets 364 27
Assets classified as held for sale at 31 December 684 845
Non-current liabilities 355 66

Current liabilities 30 97
Liabilities relating to assets classified as held for sale at 31 December 385 163
Assets classified as held for sale at 31 December 2011 com- Assets classified as held for sale at 31 December 2010 com-
prise DONG Energy’s oil terminals and the small-scale CHP prise certain completed offshore transmission networks in the
plants Ringsted CHP plant, Masnedø CHP plant, Slagelse CHP UK (Wind Power segment), Odense CHP plant and Frederik-
plant, Køge CHP plant, Haslev CHP plant, Grenå CHP plant shavn Affaldskraftvarmeværk (Thermal Power segment) as
and DTU CHP plant. The oil terminals and three of the CHP well as DONG Energy’s ownership interest in DELPRO (Sales
plants have been sold and transferred in 2012 (Thermal Power & Distribution segment), which was sold in 2011. Reference is
segment). made to note 29.

22
notes
Equity
Share capital
primarily factors such as the investment programme, cash
DKK million 2011 2010 flows from operating activities and debt maturity profile.
Share capital at 1 January 2,937 2,937 Equity, hybrid capital and bond and mortgage loans are con-
sidered to be capital.
Share capital at 31 December 2,937 2,937
It is DONG Energy’s financing policy to concentrate loans in
The company’s share capital is DKK 2,937,099,000, divided the parent company in order to optimise the loan portfolio on a
into shares of DKK 10. All shares rank equally. There are no consolidated basis. Non-current assets are primarily financed
restrictions on voting rights. The shares are fully paid up. The by cash flows from operating activities, supplemented by the
shares may only be assigned or otherwise transferred with the raising of debt.
written consent of the Danish Finance Minister.
DONG Energy manages its debt profile and cash resources via
Resolutions concerning amendments to the Articles of various policies aimed at minimising refinancing risks. This is
Association or DONG Energy A/S’s dissolution require at least achieved partly via a spread of sources of funding and maturi-
two thirds of the votes cast and of the voting share capital to ties, and partly by ensuring that cash resources are sound, either
be represented at the general meeting in order to be carried. in the form of committed borrowing facilities or cash and cash
equivalents. At the end of 2011, cash resources stood at DKK 23.1
Dividends billion, including undrawn committed borrowing facilities of DKK
The Board of Directors recommends that dividend of DKK 1,457 13.4 billion and cash and securities of DKK 9.7 billion.
million be paid for the 2011 financial year, equivalent to 60% of the
business performance result determined as the share of the busi- To secure financing on attractive terms at all times, DONG
ness performance result after tax (i.e. excluding coupon to hybrid Energy has set targets for its credit rating and capital struc-
capital holders and non-controlling interests) that is attributable ture. The credit rating target is to maintain ratings of at least
to the company’s shareholders, equivalent to DKK 4.96 per share BBB+ and Baa1 respectively with the rating agencies Standard
(2010: DKK 7.50 per share). It is the Board of Directors’ intention & Poor’s and Moody’s. DONG Energy considers that poorer
to distribute DKK 7.75 per share in 2012, and, in the years after the ratings would restrict its scope for effective implementation of
2012 financial year and until a decision, if any, on an IPO is made, the investment programme that is part of its strategy. DONG
to generally increase distributions by DKK 0.25 per share per year, Energy has been rated A- by Standard & Poor’s and Baa1 by
although in such a way that the payout ratio does not fall below Moody’s, both with a stable outlook.
40% or exceed 60% of the business performance result for the
year determined as the shareholders’ share of the business per- Up to and including 2011, the capital structure target was for
formance result after tax (i.e. excluding coupon to hybrid capital adjusted net debt not to exceed three times cash flows from
holders and non-controlling interests). operating activities. From and including 2012, the target has
been changed so that adjusted net debt must not exceed 2.5
Dividend distributions to shareholders have no tax implications times EBITDA.
for DONG Energy A/S. Dividend paid per share (DPS) of DKK 10
amounted to DKK 7.50 (2010: DKK 1.64). Hybrid capital
The hybrid capital totalling DKK 9,538 million (EUR 1.3 bil-
Cash management and capital structure lion nominal value) comprises the EUR hybrid bonds issued
Management continuously evaluates the Group’s capital in the European capital markets to which a series of special
structure to ensure that it is aligned with the Group’s and the terms are attached. The hybrid capital is subordinate to the
shareholders’ interests and supports the Group’s strategy. Group’s other creditors. The purpose of issuing hybrid capi-
tal was to strengthen the Group’s capital base and to fund
DONG Energy’s liquidity and financing risks are managed cen- the Group’s CAPEX and acquisitions.
trally in accordance with principles and delegated authorities
laid down by the Board of Directors. One of the most impor- The total hybrid capital consists of hybrid bonds due in 3005
tant financial management tasks in DONG Energy is to secure and hybrid bonds due in 3010. Further details of the two hy-
sufficient and flexible financial resources in relation to the day- brid capital issues are given in the table below.
to-day operations and the Group’s investment programme.
To this end, internal management targets have been set for Coupon on the hybrid capital is settled annually. Coupon pay-
the required level of financial resources, taking into account ments and their tax effect are recognised directly in equity.

noteS
Hybrid capital due 3005 Hybrid capital due 3010
Carrying amount DKK 4,411 million DKK 5,127 million

Principal amount EUR 600 million (DKK 4,460 million) EUR 700 million (DKK 5,204 million)
Issued June 2005 January 2011
Maturing June 3005 June 3010
First call date 29 June 2015 1 June 2021

Coupon for the first ten years is fixed at 5.5% Coupon for the first ten years is fixed at 7.75%
p.a., after which it becomes floating at 3 months’ p.a., after which it becomes variable at 12
Coupon EURIBOR + 3.2% months’ EURIBOR + 5.5%
Optional deferral option, plus mandatory defer-
ral in the event of DONG Energy A/S’s credit rat-
Deferral of coupon payment Optional deferral option ing with S&P being downgraded to BB+ or less
DONG Energy A/S may, at its sole discretion, omit or defer redeeming these bonds without replacing them with similar
coupon payments to bond holders. However, deferred cou- bonds or other subordinated capital contributions. This com-
pon payments will fall due for payment in the event of DONG mitment, which has been made to the investors at any given
Energy A/S subsequently making any distributions to its time in one or more of DONG Energy A/S’s other bond is-
shareholders. So far, DONG Energy A/S has not used the op- sues, will remain in effect until 2046. DONG Energy A/S may
tion to defer coupon payments. be released from this obligation subject to certain conditions
being met.
For the hybrid capital due in 3010, DONG Energy A/S must
defer coupon payments to bond holders in the event of S&P Of the hybrid bonds due in 3005, DONG Energy repurchased
downgrading DONG Energy A/S’s credit rating to BB+ or bonds with a nominal value of EUR 0.5 billion in January
less. In the event of such mandatory deferral, the coupon 2011 while at the same time issuing new hybrid bonds with a
must not be paid until five years after the deferral date, or nominal value of EUR 0.7 billion due in 3010.
when the credit rating again exceeds BB+.
Non-controlling interests
Via a trust deed in connection with the issuing of the hybrid Non-controlling interests’ share of recognised profit and equity
bonds due in 3010, DONG Energy A/S has committed to not in the Group relates to:
2011 2010
Profit for Profit for

DKK million the year Equity the year Equity
DONG Energy Sales GmbH - - 5 -

DONG Energy Kraftwerke Greifswald GmbH & Co. KG - - (43) -
DONG Energy Nysted I A/S 6 43 - 67
EnergiGruppen Jylland F&B A/S 6 7 (15) -
DONG Energy Germany AG - - 2 32

MIG Business Development A/S - - - 1
A2SEA A/S 42 746 (7) 318
Storrun Vindkraft AB 2 62 1 61
Walney (UK) Windfarms Ltd. 62 5,417 (50) 3,036
Gunfleet Sands Holding Ltd. 67 1,677 - -
Non-controlling interests 185 7,952 (107) 3,515

23
notes
Deferred tax
Deferred tax at 1 January 7,784 6,385
Foreign exchange adjustments 29 179

Addition on acquisition of individual assets (59) -
Deferred tax for the year recognised in profit for the year 1,460 1,258
Deferred tax for the year recognised in other comprehensive income 1 (1)
Adjustments in respect of prior years (19) (38)
Transfers to assets classified as held for sale (45) 2
Effect of reduction of income tax rate 4 (1)
Deferred tax at 31 December 9,155 7,784
Deferred tax is recognised in the balance sheet as follows:

Deferred tax (assets) (181) (404)
Deferred tax (liabilities) 9,336 8,188
Deferred tax at 31 December, net 9,155 7,784
Deferred tax relates to:

Intangible assets (10) 479
Property, plant and equipment 11,597 9,785
Other non-current assets 27 89
Current assets 158 (154)
Non-current liabilities (3,311) (3,063)
Current liabilities (125) (6)
Retaxation 2,548 1,701
Tax loss carryforwards (1,729) (1,047)
Deferred tax at 31 December 9,155 7,784
Deferred tax assets not recognised in the balance sheet relate to:
Temporary differences (2,626) (1,305)
Tax loss carryforwards 15,973 12,114
Unrecognised deferred tax assets at 31 December 13,347 10,809
Of the deferred tax totalling DKK 9,155 million (2010: DKK Unrecognised deferred tax assets relate primarily to unutilised
7,784 million), DKK 9,155 million is due for payment after 12 losses in hydrocarbon income. It is considered unlikely that the
months (2010: DKK 7,784 million). losses will be utilised in the foreseeable future.
The tax base of taxable losses includes DKK 0 million (2010:

DKK 144 million) relating to unutilised deductible net finance
costs.

noteS
Change in temporary differences in 2011
Transfers to assets
Effect of change in
other comprehen-
Foreign exchange
profit for the year
classified as held
at 31 December
Additions, indi-
Adjustments in
Balance sheet
respect of prior
Recognised in
Recognised in
Balance sheet
vidual assets
adjustments
at 1 January
sive income
tax rate
for sale
years
DKK million
Intangible assets 479 - - (444) - - (45) - (10)

Property, plant and
equipment 9,785 61 - 1,187 2 566 - (4) 11,597
Other non-current assets 89 (1) - (12) - (49) - - 27
Current assets (154) - - 209 65 38 - - 158
Non-current liabilities (3,063) (8) - (242) 63 (61) - - (3,311)
Current liabilities (6) (2) - (162) (95) 140 - - (125)
Retaxation 1,701 - - 839 - 8 - - 2,548
Tax loss carryforwards (1,047) (21) (59) 85 (34) (661) - 8 (1,729)
Deferred tax 7,784 29 (59) 1,460 1 (19) (45) 4 9,155
Change in temporary differences in 2010

Transfers to assets
Effect of change in
other comprehen-
Foreign exchange
profit for the year
classified as held
at 31 Decembe
Additions, indi-
Adjustments in
respect of prior
Balance sheet
Recognised in
Recognised in
Balance sheet
vidual assets
adjustments
at 1 January
sive income
tax rate
for sale
years
DKK million
Intangible assets 470 - - 32 - (23) - - 479

Property, plant and
equipment 8,380 210 - 1,280 - (50) (28) (7) 9,785
Other non-current assets 27 - - 144 - (82) - - 89
Current assets (125) - - (20) - (7) (2) - (154)
Non-current liabilities (2,646) (35) - (328) (69) 6 9 - (3,063)
Current liabilities (1) (1) - (116) 102 (13) 23 - (6)
Retaxation 1,049 - - 549 - 103 - - 1,701
Tax loss carryforwards (769) 5 - (283) (34) 28 - 6 (1,047)
Deferred tax 6,385 179 0 1,258 (1) (38) 2 (1) 7,784

24
notes
Provisions
2011 2010
Decom- Decom-
missioning missioning
DKK million obligations Other Total obligations Other Total
Provisions at 1 January 7,123 2,739 9,862 5,667 1,805 7,472

Foreign exchange adjustments 47 3 50 123 2 125
Provisions used during the year (7) (220) (227) (20) (80) (100)
Provisions reversed during the year (50) (225) (275) - - 0
Provisions made during the year 1,417 677 2,094 363 1,012 1,375
Change in interest rate estimates 799 - 799 798 - 798
Change in estimates of other
factors 311 - 311 62 - 62
Transfers to/from assets classified
as held for sale (349) 12 (337) (66) - (66)
Reclassifications (81) 81 0 - - 0
Interest element of decommission-
ing obligations 176 - 176 196 - 196
Provisions at 31 December 9,386 3,067 12,453 7,123 2,739 9,862
Decommissioning obligations relate to expected future costs Provisions, others, include guarantee obligations; expected
for decommissioning of production facilities, including primar- repayments to electricity consumers, etc., relating to litigation;
ily decommissioning of power stations and wind farms, and contractual disputes; and provisions for onerous contracts, etc.
restoration of gas and oil drilling sites. The equivalent value
of these obligations is recognised in production assets (prop- Provisions are determined as expected future payments with
erty, plant and equipment) and depreciated together with the addition of a risk premium and discounted to present value.
production assets. The increase in the provision for decom- The discount rate applied reflects the general risk-free inter-
missioning obligations in 2011 was primarily due to new wind est rate level in the given country. The range is 1.75%-5.75%
farms and gas and oil drilling sites. (2010: 2.75%-5.75%).
0 - 1 year 517 444
1 - 5 years 3,418 3,445

5 - 10 years 3,304 2,202
10 - 20 years 2,225 2,220
20 - 30 years 1,854 621
30 - 40 years 1,133 608
More than 40 years 2 322
Provisions at 31 December 12,453 9,862
25
noteS
Loans and borrowings
2011 2010
Non-current
Non-current
liabilities
liabilities
liabilities
liabilities
Current
Current
Total
Total
DKK million
Non-derivative financial instruments:

Bond loans 3,717 18,961 22,678 3,737 22,833 26,570
Bank overdrafts 114 - 114 19 - 19
Other bank loans 1,681 15,754 17,435 641 10,673 11,314
Trade payables 9,377 - 9,377 6,148 - 6,148
Payables to associates 10 - 10 43 - 43
Other payables 6,793 616 7,409 7,416 54 7,470
Derivative financial instruments:
Fair value of derivative financial instruments,
see note 33 13,095 - 13,095 13,350 - 13,350
Non-financial liabilities:
Construction contracts, see note 20 461 - 461 18 - 18
Deferred income 1,089 1,713 2,802 609 1,634 2,243
Loans and borrowings before obligations relat-

ing to assets classified as held for sale 36,337 37,044 73,381 31,981 35,194 67,175
Liabilities relating to assets classified as held for
sale 385 - 385 163 - 163
Loans and borrowings at 31 December, incl.

obligations relating to assets classified as held
for sale 36,722 37,044 73,766 32,144 35,194 67,338
At 31 December 2011, DONG Energy had loans totalling DKK At 31 December 2011, the Group also had non-cancellable
11,851 million (2010: DKK 9,097 million) from the European revolving credit facilities totalling EUR 1.6 billion (2010: EUR
Investment Bank and the Nordic Investment Bank to fund 1.0 billion). These revolving credit facilities are primarily used
certain assets, including marine gas pipelines, Avedøre power as cash resources and remained undrawn at 31 December
station and a number of offshore wind farms in Denmark and 2011. In connection with these credit facilities, the Group may
the UK. The loans offered by these multilateral financial in- be met with demands concerning collateral in the event of
stitutions include loans to co-fund infrastructure and energy other players than a group consisting of the Danish State and
projects on favourable terms and with maturities that often Danish electricity distribution companies acquiring more than
exceed those normally available in the commercial banking 50% of the share capital or voting rights in DONG Energy A/S,
market. or in the event of the Danish State ceasing to hold at least
20% of the share capital.
In connection with these loans, the Group may be met with de-
mands concerning collateral in the event of a player other than The Group’s financing agreements are not subject to any other
the Danish State acquiring more than 50% of the share capital unusual terms or conditions. Pledging of collateral in connec-
or voting rights in DONG Energy A/S (change of control), or in tion with loans is disclosed in note 36.
the event of Moody’s or Standard & Poor’s downgrading DONG
Energy A/S’s rating to Baa3 or BBB- or less respectively.
26
notes
Interest-bearing debt and capital employed
Interest-bearing net debt can be broken down as follows:

Interest-bearing debt
Bond loans 22,678 26,570
Bank loans 17,549 11,333
Payables to associates 10 43
Other interest-bearing liabilities 724 450
Interest-bearing debt 40,961 38,396
Interest-bearing assets
Securities 9,914 7,620
Cash 2,342 4,147
Of which non-interest-bearing (48) (15)
Receivables from associates and jointly controlled entities 1,427 815
Of which non-interest-bearing (11) (262)
Receivables from the disposal of equity investments to non-controlling interests 1,345 1,740
Capital contributions receivable from non-controlling interests 2,103 2,212
Interest-bearing assets classified as held for sale 274 -

Interest-bearing assets 17,346 16,257
Interest-bearing net debt 23,615 22,139
Capital employed can be broken down as follows:
Operating assets
Total assets 154,073 137,339
Interest-bearing assets (17,346) (16,257)
Non-interest-bearing assets 136,727 121,082
Operating liabilities
Total liabilities 96,333 86,031
Interest-bearing debt (40,961) (38,396)
Non-interest-bearing debt 55,372 47,635
Non-interest-bearing net assets 81,355 73,447
Reconciliation
Non-interest-bearing net assets 81,355 73,447
Interest-bearing net debt (23,615) (22,139)
Equity 57,740 51,308
27
noteS
Income tax receivable and payable
Income tax payable at 1 January, net 594 (383)
Foreign exchange adjustments 4 12

Adjustments to current tax in respect of prior years (85) 65
Payments in respect of prior years (505) 451
Current tax for the year 2,294 1,713
Current tax for the year from other comprehensive income (170) (590)
Current tax for the year relating to hybrid capital (246) (117)
Payments for the year (1,142) (557)
Income tax payable at 31 December, net 744 594
Income tax at 31 December is recognised as follows:

Income tax receivable (assets) 19 27
Income tax payable (liabilities) (763) (621)
Income tax payable at 31 December, net (744) (594)
28 Acquisition of enterprises
Acquisition of enterprises in 2011 treatment of the acquisition will be completed within one year
There were no business combinations in 2011 or 2010. Re- in accordance with IFRS 3.
versal of provisions relating to acquisitions in previous years
amounted to DKK 22 million in 2011 (2010: DKK 33 million). The step acquisition of CT Offshore is in keeping with DONG
Energy’s strategy in offshore wind. Goodwill relates to employ-
Acquisition of enterprises in 2012 ee skills and expected cost synergies. The goodwill recognised
In January 2012, DONG Energy obtained control of CT Offshore in respect of the transaction is not deductible for tax purposes.
A/S when it exercised a purchase option. The ownership inter-
est was previously classified as an associate and recognised The fair value of non-controlling interests is based on the
using the equity method. present value of the acquiree’s expected future cash flows. The
key assumptions applied are expected daily rates for vessels
Existing ownership interests are valued at fair value, with rec- and the level of activity.
ognition of the DKK 17 million fair value adjustment in gain on
disposal of enterprises. The allocation of the cost of identifi- Assets acquired in stages include trade receivables of DKK 38
able assets, liabilities and contingent liabilities had yet to be million. None of the trade receivables acquired was deemed to
finalised at the time of publication of the consolidated finan- be uncollectible at the date of acquisition.
cial statements for 2011, and the items in the opening balance
sheet may therefore subsequently be changed. The accounting
DONG
Energy
Existing Ownership ownership Cash
ownership interest interest, Acquisition Core urchase
p
DKK million interest acquired total date activity Cost price, net
Offshore
9 January cable
CT Offshore A/S 29% 37.67% 66.67% 2012 installation 244 153
28
notes
Acquisition of enterprises
DKK million CT Offshore
Consideration for ownership interest acquired 153

Fair value of existing ownership interest 91
Consideration 244
Fair value of identifiable assets, liabilities and contingent liabilities 251

Non-controlling interests (82)
Goodwill 75
Total 244
Determination of gain on value adjustment of existing ownership interest in enterprise acquired in

stages:
Fair value of existing ownership interest 91
Carrying amount of existing ownership interest (74)
Gain recognised in gain on disposal of enterprises 17
CT Offshore
Carrying amount
before Fair value at
DKK million acquisition date acquisition date
Intangible assets - 75
Property, plant and equipment 238 406

Receivables 45 45
Non-current liabilities (97) (138)
Net assets 125 327

Non-controlling interests (83)
DONG Energy’s share of net assets 244

Intragroup debt acquired -
Cash acquired -
Cash purchase price, net 244
29
noteS
Disposal of enterprises
Other non-current assets 14 1,373

Other current assets 406 48
Adjustment of purchase price (221) -
Gain on disposal of enterprises 225 905
Selling price 29 2,298

Of which selling price receivable (4) -
Received in respect of prior year disposals 30 -
Cash transferred (10) (19)
Cash selling price 45 2,279
2011
DKK million Gain/(loss)
Elsamprojekt Polska (Thermal Power) 1

Odense Kraftvarmeværk A/S (Thermal Power) -
Frederikshavn Affaldskraftvarmeværk A/S (Thermal Power) -
DELPRO A/S and adjustment Fiber Newco A/S earn-out (Sales & Distribution) 3
Purchase price adjustment relating to Energi E2 Renewables Ibericas S.L. (Wind
Power) 221
Gain on disposal of enterprises 225
An amount of DKK 221 million has been recognised as income posal of Energi E2 Renewables Ibericas S.L. (wind activities in
in respect of purchase price adjustment relating to the dis- Spain and Portugal) in 2007.
2010
DKK million Gain/(loss)
Nordkraft AS and Salten Kraftsamband AS (Wind Power) 696

Elsam France S.A.S. (Wind Power) 25
Dansk Gasteknisk Center A/S (Sales & Distribution) -
Swedegas AB (Energy Markets) 184
Gain on disposal of enterprises 905
30
notes
Transactions with non-controlling interests

Transactions with non-controlling interests
Dividends paid to non-controlling interests (16) -

Acquisition of equity investments from non-controlling interests (76) (138)
Disposal of equity investments to non-controlling interests 1,541 119
Other capital transactions with non-controlling interests 2,496 349
Transactions with non-controlling interests 3,945 330
Acquisition of equity investments from non-controlling interests
Purchase price 76 138

Of which payable - -
Cash purchase price 76 138
Acquisition of equity investments from non-controlling inter- Acquisition of equity investments from non-controlling inter-
ests in 2011 comprises the acquisition of 16.43% of DONG ests in 2010 comprises the acquisition of 25.1% of DONG En-
Energy Germany AG and the payment of contingent considera- ergy Kraftwerke Greifswald GmbH & Co. KG and 25% of DONG
tion relating to Borkum Riffgrund I Holding A/S. Energy Sales GmbH.
Disposal of equity investments to non-controlling interests
Selling price 1,767 1,666

Transaction costs (53) (41)
Of which receivables (173) (1,506)
Cash selling price 1,541 119
Disposal of equity investments to non-controlling Disposal of equity investments to non-controlling

interests in 2011 interests in 2010
Disposal of equity investments to non-controlling interests Disposal of equity investments to non-controlling interests
comprises the disposal of 49.9% of Gunfleet Sands Holding comprises the disposal of 24.8% of Walney (UK) Offshore
Limited and adjustments in respect of prior year disposals. Windfarms Ltd. and 14.5% of DONG Energy Nysted I A/S.
The selling price for Gunfleet Sands Holding Limited is con- The selling price for Walney (UK) Offshore Windfarms Ltd. is
tingent on certain future conditions. The selling price was contingent on certain future conditions being met. The selling
determined based on management’s best estimate of the price was determined based on management’s best estimate
probability of these conditions being met. of the probability of these conditions being met.
noteS
Other capital transactions with non-controlling interests
Capital contributions from non-controlling interests 2,668 2,613

Other payments from non-controlling interests 1,931 -
Of which receivables (2,103) (2,264)
Cash contribution 2,496 349
Cash contribution primarily represents contributions from

non-controlling interests in respect of the construction of wind
farms.
31 Cash and cash equivalents and securities
Available cash 1,554 3,644
Bank overdrafts that are part of the ongoing cash management, see note 25 (114) (19)
Cash and cash equivalents at 31 December, see statement of cash flows 1,440 3,625
Cash can be broken down into the following balance sheet items:
Available cash 1,554 3,644
Cash not available for use 788 503
Cash at 31 December 2,342 4,147
Securities can be broken down into the following balance sheet items:
Available securities 8,129 7,470
Securities not available for use 1,785 150
Securities at 31 December 9,914 7,620
Cash not available for use primarily comprises cash and cash The securities are primarily highly liquid AAA-rated Danish
equivalents tied up for use in jointly controlled wind turbine mortgage bonds that qualify for repos in the Danish Central
projects, cash and cash equivalents pledged as collateral for Bank.
trading in financial instruments, cash and cash equivalents to
cover insurance-related provisions, and cash and cash equiva- Securities not available for use comprise securities that form
lents received from the users of the North Sea oil pipeline for part of genuine sale and repurchase transactions (repo trans-
use for pipeline maintenance. actions) amounting to DKK 1,536 million (2010: DKK 0 million)
and securities used to cover insurance-related provisions.
The securities are part of DONG Energy’s ongoing cash man-
agement. In accordance with IAS 7, cash flows from securities
are recognised in cash flows from investing activities.
32
notes
Credit and market risks
Clearing
DKK million centres AAA/Aaa AA/Aa A/A BBB/Baa Other Total
2011 3,430 8,350 5,226 8,621 1,471 9,078 36,176
2010 7,153 7,097 4,883 8,212 357 7,897 35,599
Credit risks and, to a lesser extent, other commodities. The Group trades
The table above provides an overview of the credit quality of actively in these commodities in the relevant markets to hedge
the market value of derivative financial instruments, cash and and optimise its supply requirements and secure the Group’s
bond portfolios and trade receivables at 31 December 2011 supply chain. In this connection, the Group uses derivatives to
in the DONG Energy Group based on the individual counter- hedge its positions.
party’s ratings with Standard & Poor’s and Moody’s.
The sensitivity analysis below shows the effect of market value
The amounts stated do not include any collateral and therefore changes assuming a relative price change at 31 December
do not reflect the actual credit risk. 2011. The illustrated effect on profit comprises financial instru-
ments that remained open at the balance sheet date and have
Like previous years, DONG Energy’s counterparty risks are an effect on profit in the financial year in question. Besides
concentrated on companies with a rating of A/A or above. The derivative financial instruments on commodities and currency,
AA/Aa and A/A categories cover trading with large interna- financial instruments in this context include receivables and
tional energy companies and banks. Such trading is regulated payables in foreign currencies.
under standard agreements, such as EFET and ISDA agree-
ments, which feature credit rating and netting provisions. The It should be noted that the illustrated sensitivities only com-
AAA/Aaa category covers DONG Energy’s position in Danish prise the Group’s financial instruments and therefore exclude
AAA-rated mortgage bonds. the effect from contracts concluded under which physical
delivery of the underlying assets is made, as these are not
The value of trading at clearing centres decreased significantly recognised as financial instruments in accordance with IAS
compared with 2010, whereas the other categories increased. 39. The sensitivity thus only comprises the derivative financial
This reflected a combination of changed trading activity in instruments and not the physical contracts they hedge.
connection with hedging of DONG Energy’s market risk and
market value changes in relation to the date of conclusion The implementation of business performance has made the
of each transaction determined at 31 December. The ‘Other’ Group more sensitive to changes in commodity prices and
group predominantly consists of trade receivables from cus- exchange rates in the statement of comprehensive income, but
tomers, such as end users and PSO customers. has reduced its sensitivity in equity. The financial instruments
that form part of the sensitivity analysis are financial instru-
Further details of the Group’s risk management are provided ments and financial contracts measured at market value and
in the chapter on Risk and risk management on pages 44-49 the Group’s receivables, cash and trade payables and its exter-
of Management’s review. nal financing such as bank loans and bond loans.
Market risks Net investments and associated hedging of net investments in

The market risk on commodities primarily relates to portfolio foreign subsidiaries are not included, as the effect of the sum
management and trading activities. The Group is exposed of the investment and the hedging is considered to be neutral
to two types of energy risk: fluctuations in market prices and to price changes. For further details of the Group’s net invest-
fluctuations in volumes due to the fluctuating needs of the ments and hedging of same, reference is made to note 33.
underlying business.
By virtue of its day-to-day activities, the Group is exposed to

fluctuations in the prices of gas, oil, electricity, coal and CO2
noteS
At 31 December 2011 At 31 December 2010
Effect on Effect on Effect on Effect on

Risk Price change profit before tax equity before tax profit before tax equity before tax
Oil +10% 751 - 867 (427)

-10% (719) - (923) 522
Gas +10% (1,572) - (17) -
-10% 1,572 - 17 -
Electricity +10% (636) - 523 (308)
-10% 599 - (524) 308
Coal +10% 25 - (173) 176
-10% (25) - 173 (176)
USD +10% 393 - (152) 1,531
-10% (393) - 152 (1,531)
GBP +10% (369) (94) 17 156
-10% 369 94 (17) (156)
NOK +10% (205) (5) (282) 21
-10% 205 5 282 (21)
SEK +10% 75 (3) 70 (43)
-10% (68) 3 (70) 43
EUR +10% (535) - (1,479 (75)
-10% 535 - 1,479 75
Other +10% 2 9 - -
-10% (2) (9) - -
Interest +100 basis points (237) 448 (482) 279
33
notes
Financial instruments
Maturity analysis of financial liabilities, including interest payments
2011
obligation
Payment
Carrying
amount
After
DKK million 2012 2013 2014 2015 2016 2016
Bond loans 22,678 35,618 4,856 1,009 4,726 827 4,544 19,656
Bank overdrafts 114 114 114 - - - - -
Other bank loans 17,435 20,679 2,126 2,361 1,022 791 1,282 13,097
Trade payables 9,377 9,377 9,377 - - - - -
Payables to associates 10 10 10 - - - - -
Fair value of derivative
financial instruments 13,095 13,378 9,374 1,830 729 139 110 1,196
Other payables 7,409 7,409 6,793 616 - - - -
At 31 December 70,118 86,585 32,650 5,816 6,477 1,757 5,936 33,949
In this connection, on 31 December 2011, DONG Energy is- have been used to hedge interest rate and currency risks on
sued hybrid capital with a principal of DKK 9,664 million and the Group’s loan portfolio.
maturity in the year 3005 (DKK 4,460 million) and 3010 (DKK
5,204 million). Apart from the fair value of derivative financial instruments,
current liabilities fall due for payment less than one year after
The maturity analysis is based on undiscounted cash flows the end of the financial year. Other liabilities predominantly
relating to financial liabilities. Derivative financial instruments comprised VAT and indirect taxes as well as deferred income.
2010
obligation
Payment
Carrying
amount
After
DKK million 2011 2012 2013 2014 2015 2015
Bond loans 26,570 40,401 5,044 4,980 1,004 4,728 822 23,823
Bank overdrafts 19 19 19 - - - - -
Other bank loans 11,314 13,260 879 383 2,194 617 539 8,648
Trade payables 6,148 6,148 6,148 - - - - -
Payables to associates 43 43 43 - - - - -
Fair value of derivative
financial instruments 13,350 13,350 10,542 1,519 523 153 17 596
Other payables 7,470 7,470 7,416 54 - - - -
At 31 December 64,914 80,691 30,091 6,936 3,721 5,498 1,378 33,067
noteS
Categories of financial instruments
2011 2010
Fair value
Fair value
Carrying
Carrying
amount
amount
DKK million
Derivative financial instruments included in trading portfolio 16,301 16,301 10,359 10,359
Securities 9,914 9,914 7,620 7,620
Financial assets measured at fair value via profit for the year 26,215 26,215 17,979 17,979
Derivative financial instruments entered into to hedge future cash flows - - 4,174 4,174
Derivative financial instruments entered into to hedge net investments in
foreign enterprises 455 455 203 203
Derivative financial instruments entered into to hedge fair values 405 405 170 170
Financial assets used as hedging instruments 860 860 4,547 4,547
Trade receivables 7,634 7,634 9,451 9,451

Receivables from the disposal of activities 1,554 1,554 1,974 1,974
Other receivables 8,530 8,530 7,525 7,525
Cash 2,342 2,342 4,147 4,147
Loans and receivables 20,060 20,060 23,097 23,097
Other equity investments 418 418 374 374
Financial assets available for sale 418 418 374 374
Derivative financial instruments included in trading portfolio 11,755 11,755 8,681 8,681
Financial liabilities measured at fair value via profit for the year 11,755 11,755 8,681 8,681
Derivative financial instruments entered into to hedge future cash flows 1,028 1,028 4,545 4,545
Derivative financial instruments entered into to hedge net investments in
foreign enterprises 1,293 1,293 433 433
Derivative financial instruments entered into to hedge fair values 120 120 136 136
Financial liabilities used as hedging instruments 2,441 2,441 5,114 5,114
Bond loans 22,678 25,228 26,570 28,149

Bank loans 17,549 18,271 11,333 11,770
Other payables 12,546 12,546 12,205 12,205
Financial liabilities measured at amortised cost 52,773 56,045 50,108 52,124
The fair value has been determined as the present value of The nominal value of bond loans, bank overdrafts and other
expected future instalments and interest payments using the bank loans was DKK 40,584 million (2010: DKK 38,028
Group’s current interest rate on loans as discount rate. million).
33
notes
Fair value of derivative financial instruments
2011 2010
DKK million Positive Negative Net Positive Negative Net
Commodities:
Oil swaps 2,255 (1,952) 303 1,346 (1,171) 175
Oil options 514 (101) 413 829 - 829
Gas swaps 4,083 (2,538) 1,545 1,258 (1,369) (111)
Electricity swaps 6,566 (4,731) 1,835 8,850 (8,407) 443
Electricity options 23 (529) (506) 6 (7) (1)
CO2 emissions allowances 417 (130) 287 131 (126) 5
Coal forwards 715 (797) (82) 1,099 (855) 244
Currency:
Forward exchange contracts 920 (939) (19) 368 (607) (239)
Currency swaps 423 (449) (26) 340 (199) 141
Interest:
Interest rate swaps 144 (929) (785) 234 (609) (375)
At 31 December 16,060 (13,095) 2,965 14,461 (13,350) 1,111
2011 2010
DKK million Positive Negative Net Positive Negative Net
0-6 months 7,612 (6,288) 1,324 6,808 (7,232) (424)

6-12 months 3,739 (3,018) 721 3,284 (3,310) (26)
1-2 years 2,495 (1,789) 706 2,049 (1,519) 530
2-3 years 936 (709) 227 829 (523) 306
More than 3 years 1,278 (1,291) (13) 1,491 (766) 725
At 31 December 16,060 (13,095) 2,965 14,461 (13,350) 1,111
The Group uses derivative financial instruments as part of its maturity analysis for interest rate swaps reflects the expected
risk management, trading and when position taking. The maturity for each contract.
noteS
Securities
2011
Avg. interest
Maturity
Carrying
Nominal
rate (%)
amount
value
After
DKK million 2012 2013 2014 2015 2016 2016
Fixed-interest 4,929 4,968 2.94 205 559 2,125 206 1,148 725
Floating-rate 3,156 3,161 1.51 1,724 397 687 - 353 -
Distributable securities 8,085 8,129 1,929 956 2,812 206 1,501 725
Fixed-rate securities forming part
of repo transactions 1,502 1,536 2.00 - 509 - 1,027 - -
Fixed-interest securities pledged as
collateral in respect of insurance-
related provisions 250 249 2.60 249 - - - - -
At 31 December 9,837 9,914 2,178 1,465 2,812 1,233 1,501 725
2010
Avg. interest
Maturity
Carrying
Nominal
rate (%)
amount
value
After
DKK million 2011 2012 2013 2014 2015 2015
Fixed-interest 5,551 5,569 3.20 4,014 - 502 - 483 570

Floating-rate 1,896 1,901 1.43 398 1,503 - - - -
Distributable securities 7,447 7,470 4,412 1,503 502 0 483 570
Fixed-interest securities pledged as

collateral in respect of insurance-
related provisions 150 150 4.00 150 - - - - -
At 31 December 7,597 7,620 4,562 1,503 502 0 483 570
In 2011, DONG Energy started using genuine sale and repur- In this connection, DONG Energy uses its bond portfolio as
chase transactions (repo transactions) in connection with the sales instrument.
management of the Group’s ongoing cash flow management.
33
notes
Trading portfolio, economic hedging and cash flow hedging
2011 Trading portfolio
Total and economic hedging
DKK million Notional amount Fair value Notional amount Fair value
Commodities:
Oil swaps 6,129 303 6,129 303
Oil options 1,192 413 1,192 413
Gas swaps 22,032 1,545 22,032 1,545
Electricity swaps 19,006 1,835 19,006 1,835
Electricity options 444 (506) 444 (506)
CO2 emissions allowances 512 287 512 287
Coal forwards 1,636 (82) 1,636 (82)
Currency:
Forward exchange contracts 9,240 300 3,751 467
Currency swaps 7,014 352 6,177 367
Interest:
Interest rate swaps 10,033 (929) 550 (83)
Total derivative financial instruments 77,238 3,518 61,429 4,546
Cash flow hedging
Expected date
Recognised
of transfer to profit for the year

Fair value
Notional
in equity
amount
After
DKK million 2012 2013 2014 2014
Commodities:
Oil swaps - - (184) (90) (39) (55) -
Oil options - - 317 208 109 - -
Gas swaps - - - - - - -
Electricity swaps - - (69) (65) (4) - -
Electricity options - - - - - - -
CO2 emissions allowances - - - - - - -
Coal forwards - - 56 45 11 - -
Currency:
Forward exchange contracts 5,489 (167) (1,457) (392) (486) (477) (102)
Currency swaps 837 (15) 153 20 34 64 35
Interest:
Interest rate swaps 9,483 (846) (848) (6) (25) (5) (812)
Total derivative financial

instruments 15,809 (1,028) (2,032) (280) (400) (473) (879)
noteS
Trading portfolio, economic hedging and cash flow hedging
Trading portfolio
2010 Total and economic hedging
DKK million Notional amount Fair value Notional amount Fair value
Commodities:
Oil swaps 11,603 175 9,794 557
Oil options 8,148 829 - -
Gas swaps 1,272 (111) 1,272 (111)
Electricity swaps 13,848 442 8,689 1,257
CO2 emissions allowances 258 34 258 34
Coal forwards 1,959 244 71 14
Currency:
Forward exchange contracts 7,563 (141) - -
Currency swaps 10,778 221 5,305 53
Interest:
Interest rate swaps 18,494 (386) 13,650 (126)
Total derivative financial instruments 73,923 1,307 39,039 1,678
Cash flow hedging
Expected date of transfer

Recognised
to profit for the year

Fair value
Notional
in equity
amount
After
DKK million 2011 2012 2013 2013
Commodities:
Oil swaps 1,809 (382) (370) (186) (90) (39) (55)

Oil options 8,148 829 493 176 208 109 -
Gas swaps - - - - - - -
Electricity swaps 5,159 (815) (552) (482) (65) (4) (1)
CO2 emissions allowances - - - - - - -
Coal forwards 1,888 230 144 70 63 11 -
Currency:
Forward exchange contracts 7,563 (141) (1,280) (64) (220) (423) (573)
Currency swaps 5,473 168 339 163 73 (3) 106
Interest:
Interest rate swaps 4,844 (260) (265) - - (26) (239)
Total derivative financial

instruments 34,884 (371) (1,491) (323) (31) (375) (762)
33
notes
In 2011, in connection with the introduction of business per- Ineffectiveness arising from hedging of future cash flows from
formance, the Group discontinued the application of hedge commodity hedging and related currency exposures is rec-
accounting for commodities and related currency exposures. ognised in the item effect of economic hedging with DKK 30
Commodity hedge transactions, DKK 120 million, all of which million (2010: DKK 390 million), see note 4, and in fual and
relate to hedging transactions entered into in or before 2010 energy with DKK 47 million (2010: loss of DKK 9 million).
are recognised in hedging of future cash flows. All commodity
hedges and related currency exposures recognised in hedging Ineffectiveness of interest rate and currency hedging amount-
of future cash flows are expected to be realised by 2014. ed to DKK 27 million (2010: DKK 7 million).
Hedging of fair values, currency

2011
Net position
instruments
ing hedging
Hedged us-
instrument
of hedging
Fair value
Liabilities
Assets
DKK million
EUR 16,592 (40,252) 18,095 (5,565) (5)

USD 4,607 (7,659) 1,439 (1,613) (48)
GBP 6,155 (9,085) - (2,930) -
SEK 1,154 (84) - 1,070 -
NOK 919 (2,964) - (2,045) -
Other 137 (118) - 19 -
Total 29,564 (60,162) 19,534 (11,064) (53)
2010
Net position
instruments
ing hedging
Hedged us-
instrument
of hedging
Fair value
Liabilities
Assets
DKK million
EUR 15,921 (43,262) 12,553 (14,788) 41

USD 2,020 (4,707) 1,437 (1,250) (82)
GBP 7,333 (6,459) - 874 -
SEK 725 (61) - 664 -
NOK 478 (3,298) - (2,820) -
Other 182 (68) - 114 -
Total 26,659 (57,855) 13,990 (17,206) (41)
In addition to the above, the fair value of the Group’s inter- value adjustments of a share of the portfolio that matures
est payments has been hedged in the form of interest rate in 2014-2016 with a total amount outstanding of DKK 4,386
swaps from fixed to floating-rate. Interest swaps with a total million (2010: maturity 2014-2016 and outstanding amount
value of DKK 4,386 million were entered into (2010: DKK DKK 4,398 million). The value adjustment of the hedging of
4,398 million) and a fair value of DKK 144 million (2010: DKK the Group’s portfolio of CO2 emissions allowances was DKK 0
11 million). Recognised value adjustments amounted to DKK in 2011 (2010: loss of DKK 55 million), which was offset by fair
133 million (2010: DKK 11 million), which was offset by fair value adjustment of the hedged CO2 emissions allowance.
noteS
Hedging of net investments in foreign subsidiaries
2011 2010
including equity-
including equity-
Hedged amount
Hedged amount
Net investment
Net investment
change adjust-
change adjust-
nised in equity
nised in equity
Net position
Net position
ments recog-
ments recog-
Foreign ex-
Foreign ex-
in currency
in currency
like loans
like loans
DKK million
GBP 25,771 (22,400) 3,371 236 21,678 (15,886) 5,792 147

NOK 10,932 (3,361) 7,571 349 10,437 (3,962) 6,475 399
SEK 2,776 (1,407) 1,369 (254) 2,714 (1,782) 932 (261)
EUR 5,974 - 5,974 (9) 5,143 0 5,143 7
PLN 1,243 (1,183) 60 (38) 1,457 (1,265) 192 (17)
Total 46,696 (28,351) 18,345 284 41,429 (22,895) 18,534 275
Ineffectiveness relating to hedging of net investments in for-

eign subsidiaries was DKK 28 million (2010: DKK 3 million).
Fair value hierarchy of financial instruments
2011 2010
Non-ob- Non-ob-
Quoted Observa- servable Quoted Observa- servable
prices ble inputs inputs prices ble inputs inputs
DKK million (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total
Derivative finan-
cial instruments - 13,967 2,093 16,060 - 12,819 1,642 14,461
Securities 9,914 - - 9,914 7,620 - - 7,620
Assets 9,914 13,967 2,093 25,974 7,620 12,819 1,642 22,081
Derivative finan-
cial instruments - (12,135) (960) (13,095) - (13,312) (38) (13,350)
Liabilities 0 (12,135) (960) (13,095) 0 (13,312) (38) (13,350)
Level 1 comprises quoted securities that are traded in active Level 3 comprises primarily long-term contracts on purchase/
markets. sale of, in particular, electricity and gas, and oil options. The
fair values are based on assumptions concerning the long-
Level 2 comprises derivative financial instruments, where valu- term prices of, in particular, electricity, gas, coal, USD, EUR,
ation models with observable inputs are used to measure fair volatilities as well as risk premiums in respect of liquidity and
value, but with discounting to present value applying one of market risks and are determined by discounting of expected
the discount rates set by the Group. Level 2 also comprises cash flows. Level 3 also includes other financial instruments in
quoted securities that have not been traded in the market suf- which primarily electricity, oil and gas prices have been esti-
ficiently for a reliable fair value to be obtained. mated, and where the sum of these estimated, non-observable
inputs may affect fair value.
33
notes
Reconciliation of financial instruments based on non-observable inputs
2011 2010
Derivative finan- Derivative finan- Derivative finan- Derivative finan-

cial instruments cial instruments cial instruments cial instruments
DKK million (assets) (liabilities) (assets) (liabilities)
Opening at 1 January 1,642 (38) 1,600 (126)

Gains and losses recognised in profit for
the year as revenue (54) (449) (421) 103
Purchases 561 (196) 12 (15)
Other transfers to and from Level 3 (56) (277) 451 -
Closing at 31 December 2,093 (960) 1,642 (38)
A loss in respect of assets and liabilities that are valued based The fair value of financial instruments based on non-observ-
on non-observable inputs and were still recognised in the bal- able inputs is significantly affected by the non-observable
ance sheet at 31 December 2011 was recognised with DKK 137 inputs used. As a result of the long-term and illiquid nature
million (2010: loss of DKK 323 million) in profit for the year as of the contracts, the fair value may change significantly in the
revenue. event of a change in the Group’s reasonable expectations re-
lating to the non-observable inputs used.
34 Jointly controlled entities
DONG Energy has ownership interests in jointly controlled en- capital commitments to jointly controlled entities, as shown in
tities that primarily comprise ownership and operation of wind note 36.
farms and power stations. The Group’s ownership interests in
jointly controlled entities appear from note 42 in the complete Contingent liabilities relating to jointly controlled entities are
annual report. shown in note 37.
DONG Energy has assumed investment obligations through The Group’s recognised share of the profits, costs, assets and
its participation in jointly controlled entities and has made liabilities of jointly controlled entities is as follows:
Income 854 570

Expenses (589) (421)
Non-current assets 15,160 5,823

Current assets 2,286 1,481
Assets at 31 December 17,446 7,304
Non-current liabilities 4,299 378

Current liabilities 4,246 465
Liabilities at 31 December 8,545 843
35
noteS
Lease commitments
2011
Operating leases Finance leases
Minimum Minimum
lease lease Present
DKK million payments Subleasing Net payments Interest value
0-1 year 306 - 306 30 (3) 27

1-5 years 850 - 850 28 (8) 20
More than 5 years 1,257 - 1,257 29 (27) 2
Minimum lease payments 2,413 0 2,413 87 (38) 49
2010
Operating leases Finance leases
Minimum Minimum
lease lease Present
DKK million payments Subleasing Net payments Interest value
0-1 year 415 (177) 238 40 (2) 38

1-5 years 692 - 692 156 (20) 136
Over 5 years 813 - 813 46 (33) 13
Minimum lease payments 1,920 (177) 1,743 242 (55) 187
Assets held under operating leases comprise land and seabed The minimum lease payments under these leases amount to
relating to wind farms in the UK, Poland and Germany until DKK 1,153 million and have not been recognised in the above
2037, natural gas storage facilities in Germany until 2023, a calculation of minimum lease payments under lease arrange-
power station site in the Netherlands until 2037, office prem- ments commenced.
ises until 2022 and vehicles etc.
In 2011, operating lease payments totalling DKK 414 million
Lease payments in respect of leasing of sea bed relating to were recognised (2010: DKK 529 million) in profit for the year.
wind farms in the UK vary with the MWh generated, but with
agreed minimum lease payments. Obligations relating to assets held under finance leases are
recognised in bank loans. The present value of minimum lease
The Group has concluded operating leases in respect of an in- payments has been calculated using the interest rate in the
stallation vessel for the construction of wind farms for the pe- respective leases. There is no contingent rent under the leases.
riod 2013-2015, a port in Belfast in Northern Ireland for the pe-
riod 2013-2017 and seabed for wind farms in the UK from 2012 Assets held under finance leases are recognised as property,
and up to 50 years thereafter (including options for extension). plant and equipment in the balance sheet at 31 December,
The lease relating to the port includes an option under which it with the following carrying amounts:
may be extended by five years.
Production assets 18 32
Property, plant and equipment under construction 98 91
Carrying amount at 31 December 116 123
36
notes
Contractual obligations and security arrangements
Investment obligations relating to jointly controlled entities:

Share of jointly controlled entities’ investment obligations 2,060 2,518
Investment obligations in relation to participation in jointly controlled entities - 1,413
Obligations relating to natural gas and oil exploration and production licences:
Share of licences’ investment obligations 6,788 6,211
Other investment obligations:

Investment obligations relating to property, plant and equipment 19,746 24,621
Contractual obligations Security arrangements

Investment obligations in respect of jointly controlled enti- Mortgage loans totalling DKK 1,502 million (2010: DKK 1,502
ties and other investment obligations relate primarily to wind million) were secured on power stations with a carrying
farms. amount of DKK 2,812 million (2010: DKK 3,238 million).
The Group is a party to a number of long-term purchase and Furthermore, the Group provided cash collateral in respect of
sales contracts entered into in the course of the Group’s ordi- trading in financial instruments, see note 31.
nary operations. Apart from the liabilities already recognised
in the balance sheet, the Group does not expect to incur any
significant financial losses as a result of the performance of
these contracts.
37 Contingent assets and liabilities
Contingent assets Contingent liabilities

Significant unrecognised contingent assets comprise de- Liability to pay compensation
ferred tax assets at DKK 13.3 billion (2010: DKK 10.8 billion). According to the legislation, DONG Energy’s natural gas
Reference is made to note 23. companies DONG Oil Pipe A/S, DONG E&P A/S and DONG
E&P Grønland A/S are liable to pay compensation for damage
DONG Energy has advanced claims against a few trading part- caused by their gas and oil activities, even where there is no
ners and insurance companies. Management is of the opinion proof of negligence (strict liability). The usual insurance has
that the claims are justified. The claims have not been recog- been taken out to cover any such claims.
nised, as the existence of these assets is subject to several un-
certain future events that are outside DONG Energy’s control. Guarantees
DONG Energy A/S has furnished the Danish Ministry of
In previous financial years, the Group concluded agreements Economic Affairs and the Interior with a guarantee for fulfil-
on the sale of companies that feature contingent considera- ment of all obligations and liability to the Danish State or third
tion. This consideration has not been recognised, as its exist- parties incurred by DONG E&P A/S as co-holder of the licences
ence is subject, in part, to several uncertain future events that in which the company participates, irrespective of whether the
are outside DONG Energy’s control. obligations and liability rest on DONG E&P A/S alone or jointly
and severally with others. However, the guarantee is limited
to a sum corresponding to twice DONG E&P’s share of each
obligation or liability.
noteS
As a condition for approval of its participation in gas and oil Litigation
exploration and production on the Norwegian, UK, Greenland DONG Energy is a party to actions relating to the competition
and Faroese continental shelves, DONG Energy A/S has pro- authorities’ claim that Elsam A/S and Elsam Kraft A/S charged
vided a guarantee under which it assumes primary liability as excessive prices in the Danish wholesale electricity market in
normally required by the local authorities. The guarantee cov- some periods. Following a merger in 2008, Elsam Kraft A/S is
ers obligations and liability incurred or assumed by the DONG part of DONG Energy Power A/S.
E&P Group in connection with its exploration and production
activities. The guarantee has no maximum limit and the DONG The Competition Appeals Tribunal has concluded that Elsam
E&P Group is jointly and severally liable with the other part- A/S and Elsam Kraft A/S abused their dominant positions in
ners for obligations and liability. the wholesale electricity market in Western Denmark to some
extent in the periods 1 July 2003 to 31 December 2004 and 1
Through subsidiaries and jointly controlled assets and entities, January 2005 to 30 June 2006 by charging excessive prices.
DONG Energy participates in gas and oil exploration and pro- DONG Energy disputes the rulings and has appealed them to
duction, construction and operation of wind farms, geothermal the Copenhagen Maritime and Commercial Court.
plants and natural gas facilities. The Group has provided guar-
antees, and guarantees under which the Group assumes pri- A group of power consumers has filed a claim with the
mary liability, in respect of the construction and operation of Copenhagen Maritime and Commercial Court for compensa-
facilities, and leases, decommissioning obligations, purchase tion of up to DKK 4.4 billion with addition of interest in con-
and sales contracts, etc. nection with the above actions relating to excessive prices in
Western Denmark. DONG Energy has recognised a provision
Joint and several liability of DKK 298 million, which has been determined on the basis of
DONG Energy participates in a number of jointly controlled the Danish Competition Council’s calculation of the consum-
assets and entities, including renewable energy projects and ers’ losses.
gas and oil exploration and production licences. The Group
is jointly and severally liable with the other joint venturers for In connection with collaboration agreements entered into by
obligations and liability under agreements concluded. the Group concerning jointly controlled assets and entities,
etc., various minor litigation cases are pending, the outcome
DONG Energy Power A/S is liable as a partner for financial of which is not expected, either individually or collectively, to
losses at certain CHP plants. have any significant effect on the Group’s financial position.
The Group is also a party to a number of litigation proceed-
ings and legal disputes that will not have any significant
effect on the Group’s financial position, either individually or
collectively.
38
notes
Related party transactions
Related parties and other venturers, and associates in which DONG Energy
Related parties that have control over the Group comprise the has significant influence. Reference is made to note 42 in the
Danish State, represented by the Danish Ministry of Finance, complete annual report for an overview of the Group’s jointly
which owns 76% of the parent company. controlled entities and associates.
Other related parties are the Group’s Board of Directors, Related party transactions
Executive Board, senior executives and close members of Remuneration to the Board of Directors, the Executive Boards
their families. Related parties also comprise companies that and other senior executives is disclosed in note 6.
are controlled or jointly controlled by the persons referred to
above. The Group had the following transactions with jointly con-
trolled entitles and associates during the financial year:
Related parties also include the Group’s jointly controlled enti-
ties, i.e. companies that are jointly controlled by DONG Energy
Jointly controlled entities Associates
DKK million 2011 2010 2011 2010
Dividends received 178 39 51 59

Capital transactions, net 625 643 - -
Trade receivables 2,179 81 5 1
Trade payables (55) (40) (435) (126)
Purchase of property, plant and
equipment (1,792) - - -
Interest, net - - 64 32
Receivables 870 271 557 544
Payables - (271) (10) (43)
There were no other transactions with related parties during the Transactions with related parties are made on arm’s length
year under review. terms.
39
noteS
Events after the reporting period
Sterling-denominated bond issue remaining DKK 1.9 billion represents costs for the expansion of
In January 2012, DONG Energy issued a GBP 750 million bond DONG Energy’s terminal in Fredericia, which will be process-
with a maturity of 20 years. The bond carries a coupon of ing the oil from the Hejre field. DONG Energy estimates the
4.875%. The bond was issued under the company’s existing total reserves of the Hejre field at approx. 170 million barrels of
bond programme (EMTN programme) and the transaction will oil equivalent and expects first oil from the end of 2015.
strengthen DONG Energy’s strong liquidity position.
Disposal of stake in the German offshore
Disposal of Oil Terminals wind farm Borkum Riffgrund 1
In June 2011, DONG Energy and the Canadian energy in- In February 2012, the LEGO Group’s parent company, KIRKBI
frastructure business Inter Pipeline Fund agreed that Inter A/S, and the Oticon Foundation, via its wholly-owned in-
Pipeline Fund would take over DONG Energy Oil Terminals. vestment company, William Demant Invest A/S, signed an
The selling price for DONG Energy Oil Terminals was DKK 2.9 agreement with DONG Energy to acquire 50% of the German
billion. The transaction was completed in January 2012, yield- Borkum Riffgrund 1 offshore wind farm for a sum of approx.
ing a gain before tax of approx. DKK 2.6 billion. DKK 4.7 billion. The transaction is subject to approval by the
competition authorities and is expected to be completed in
Development of the Danish Hejre field the second quarter of 2012. Borkum Riffgrund 1 will consist
DONG Energy and Bayerngas have decided to develop the of 77 3.6 MW wind turbines from Siemens Wind Power. The
Hejre field in the Danish sector of the North Sea. DONG wind farm will be able to supply CO2-free power equivalent
Energy is the operator and has a 60% stake in the field. to the annual electricity consumption of more than 285,000
Bayerngas owns 40%. DONG Energy’s investment totals DKK households. Construction of Borkum Riffgrund 1 is expected
9.2 billion. The development of the field represents DKK 7.3 to commence in 2013, and first power is expected to be gener-
billion, equivalent to 60% of the total development costs. The ated in 2014.
Independent Auditor’s Report
Independent Auditor’s Report
The Group annual report, which, pursuant to section 149 of the Auditor’s Responsibility
Danish Financial Statements Act, is an extract of DONG Ener- Our responsibility is to express an opinion on the Consolidated
gy’s complete annual report, does not include accounting poli- Financial Statements and the Parent Company Financial
cies for the financial statements and non-financial statements, Statements based on our audit. We conducted our audit in ac-
licence overview, company overview, the financial statements of cordance with International Standards on Auditing and addi-
the parent company, DONG Energy A/S, and the statement on tional requirements under Danish audit regulation. This re-
corporate governance, including internal control and risk man- quires that we comply with ethical requirements and plan and
agement systems in connection with the financial reporting. The perform the audit to obtain reasonable assurance whether the
complete annual report, including accounting policies for the fi- Consolidated Financial Statements and the Parent Company
nancial statements and non-financial statements, licence over- Financial Statements are free from material misstatement.
view, company overview, the parent company financial state- An audit involves performing procedures to obtain audit ev-
ments and the statutory corporate governance statement, can idence about the amounts and disclosures in the Consolidated
be downloaded at www.dongenergy.com. Following adoption at Financial Statements and the Parent Company Financial
the AGM, the complete annual report will also be available from Statements. The procedures selected depend on the auditor’s
the Danish Business Authority (Erhvervsstyrelsen). judgment, including the assessment of the risks of material
misstatement of the Consolidated Financial Statements and
Auditor has made the following statement in respect of the the Parent Company Financial Statements, whether due to
complete annual report. fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company’s prepara-
To the Shareholders of DONG Energy A/S tion of Consolidated Financial Statements and Parent Com-
Report on Consolidated Financial Statements pany Financial Statements that give a true and fair view in or-
and Parent Company Financial Statements der to design audit procedures that are appropriate in the
We have audited the Consolidated Financial Statements and the circumstances, but not for the purpose of expressing an opin-
Parent Company Financial Statements of DONG Energy A/S for ion on the effectiveness of the Company’s internal control. An
the financial year 1 January to 31 December 2011, which comprise audit also includes evaluating the appropriateness of account-
statement of comprehensive income, balance sheet, statement of ing policies used and the reasonableness of accounting esti-
changes in equity, cash flow statement and notes, including sum- mates made by Management, as well as evaluating the overall
mary of significant accounting policies, for the Group as well as presentation of the Consolidated Financial Statements and the
for the Parent Company. The Consolidated Financial Statements Parent Company Financial Statements.
and the Parent Company Financial Statements are prepared in We believe that the audit evidence we have obtained is suf-
accordance with International Financial Reporting Standards as ficient and appropriate to provide a basis for our audit opinion.
adopted by the EU and Danish disclosure requirements for listed The audit has not resulted in any qualification.
companies and State-owned public limited companies.
Opinion
Management’s Responsibility for the Consolidated Financial In our opinion, the Consolidated Financial Statements and the
Statements and the Parent Company Financial Statements Parent Company Financial Statements give a true and fair view of
Management is responsible for the preparation of Consolidated the Group’s and the Parent Company’s financial position at 31 De-
Financial Statements and Parent Company Financial State- cember 2011 and of the results of the Group’s and the Parent
ments that give a true and fair view in accordance with Inter Company’s operations and cash flows for the financial year 1 Jan-
national Financial Reporting Standards as adopted by the EU uary to 31 December 2011 in accordance with International Finan-
and Danish disclosure requirements for listed companies and cial Reporting Standards as adopted by the EU and Danish dis-
State-owned public limited companies, and for such internal closure requirements for listed companies and State-owned
control as Management determines is necessary to enable the public limited companies.
preparation of Consolidated Financial Statements and Parent
Company Financial Statements that are free from material mis- Statement on Management’s Review
statement, whether due to fraud or error. We have read Management’s Review in accordance with the Dan-
ish Financial Statements Act. We have not performed any proce-
dures additional to the audit of the Consolidated Financial State-
ments and the Parent Company Financial Statements. On this
basis, in our opinion, the information provided in Management’s
Copenhagen, 9 March 2012 Review is consistent with the Consolidated Financial Statements
and the Parent Company Financial Statements.
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Fin T. Nielsen Mogens Nørgaard Mogensen

State Authorised Public Accountant State Authorised Public Accountant
124 Independent Auditor’s Report – DONG Energy Group annual report 2011
Assurance Statement
Assurance Statement
Independent auditor’s Assurance Statement nal controls, auditing analyses of the data basis used to
for DONG Energy’s stakeholders prepare the non-financial statements, sample testing of data
We have reviewed DONG Energy’s non-financial statements for and underlying documentation, including visits at selected lo-
2011 for the purpose of expressing a conclusion on CSR data. cal entities, and control of compliance with the description of
accounting policies for the 2011 non-financial statements.
Criteria used to prepare the non-financial statements
The criteria used to prepare the non-financial statements are Conclusion
set out in the description of accounting policies on pages 152- Based on our work, nothing has come to our attention causing
155 in the Annual Report. These contain information on which us to believe that the CSR data presented on page 6 of the
of the Group’s business areas and activities are included in the Group Annual Report and the Annual Report for 2011 have not
reporting and Management’s reasons for choosing the data in- been recognised in accordance with the criteria used to pre-
cluded. Data are recognised in accordance with the description pare the non-financial statements.
of applied accounting policies for non-financial data.
Special statement on reporting in accordance with GRI’s Sus-
Responsibilities tainability Reporting Guidelines and opinion on social respon-
Company Management is responsible for preparing the non-fi- sibility statement
nancial statements, including for establishing registration and We have assessed the extent to which DONG Energy has ap-
internal control systems with a view to ensuring a reliable re- plied GRI’s Sustainability Reporting Guidelines (GRI G3.0), ap-
porting basis, specifying acceptable reporting criteria and plication level B+, including Electric Utilities Sector Supple-
choosing data to be collected. Based on our review, it is our re- ment, for the financial year 2011. Our work has primarily
sponsibility to express a conclusion on the CSR data in the comprised a review of the documentation presented, including
non-financial statements. chosen inquiries and sample testing of information and data,
to determine whether the documentation meets the require-
Scope ments of GRI G3.0. Based on our work, nothing has come to
We have planned and performed our work in accordance with our attention contradicting DONG Energy’s self assessment of
the international standard on assurance engagements ISAE the extent to which it in its reporting complies with GRI G3.0,
3000 (assurance engagements other than audits or reviews of including the Electric Utilities Sector Supplement. We are thus
historical financial information) for the purpose of obtaining able to state that nothing has come to our attention causing
limited assurance that the CSR data presented on page 6 have us to believe that DONG Energy has not reported in a reasona-
been recognised in accordance with the criteria used to pre- ble and balanced manner in accordance with GRI G3.0, appli-
pare the non-financial statements. cation level B+, including the Electric Utilities Sector Supple-
ment.
The obtained assurance is limited as our engagement has
been limited compared to an audit engagement. Based on an We have furthermore assessed if, and can confirm that DONG
assessment of materiality and risk, our work has first and fore- Energy in its reporting complies with the requirements for pre-
most comprised inquiries regarding applied instructions, regis- senting a social responsibility statement as set out in section
tration and reporting systems, procedures with focus on inter- 99(a) of the Danish Financial Statements Act.
Copenhagen, 9 March 2012
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Fin T. Nielsen Mogens Nørgaard Mogensen

State Authorised Public Accountant State Authorised Public Accountant
DONG Energy Group annual report 2011 – Assurance statement 125

Company announcements in 2011
Company announcements in 2011
Q4 31 August 16 May
23 December DONG Energy acquires Noreco’s New and more transparent presenta-
Changes to previous announcement stake in the Siri field tion of income statement
about the divestment of Oil Terminals 26 August 12 May
16 December DONG Energy co-founder of bioen- DONG Energy to present first quarter
DONG Energy acquires a stake in the ergy consortium in Måbjerg results for 2011
first two projects in SMart Wind’s 22 August
Hornsea zone Executive Vice President Niels Bergh-
Q1
04 November Hansen retires
28 March
DONG Energy acquires the right to 17 August
PensionDanmark and PKA to become
further develop German offshore wind DONG Energy A/S signs a new
co-owners of Denmark’s largest off-
farm EUR 1.3bn credit facility
shore wind farm
04 November 16 August
11 March
Interim financial report – Q3 2011 – DONG Energy sells its stake in Nord-
DONG Energy A/S’ list of information
Stable results for the first nine kraft Vind
published pursuant to Section 27b of
months of the year 16 August the Danish Securities Trading Act
01 November Interim financial report - Q2 2011 –
11 March
Completion of Marubeni Corpora- High energy prices ensured strong re-
Announcement of financial results for
tion’s acquisition of an ownership sults
2010
stake in Gunfleet Sands offshore 10 August
08 March
windfarm DONG Energy to present first half re-
DONG Energy to present full year
31 October sults for 2011
2010 results
DONG Energy to present first 9 25 July
24 February
months’ results DONG Energy and Noreco make an
DONG Energy to build German off-
27 October agreement on the Siri field in the
shore wind farm
Vestas and DONG Energy enter into North Sea
18 February
agreement on testing of new 7 MW 19 July
Change of reporting segments
offshore wind turbine Terms in place for the divestment of
27 January
21 October the transmission assets at the Gun-
Notice to holders of GBP
Divestment of the transmission assets fleet Sands offshore wind farm
500,000,000 5.75% securities due
at the offshore wind farm Walney 1
2040, issued by DONG Energy on 9
20 October Q2 April 2010 (ISIN XS0499449261)
Divestment of stakes in Anholt off-
28 June 21 January
shore wind farm has been approved
DONG Energy and Bladt Industries Announcement of final pricing re-
18 October sign long-term cooperation agree- garding DONG Energy’s invitation
DONG Energy enters into agreement ment on wind turbine foundations to tender hybrid capital bonds for
to acquire UK Shell Gas Direct
20 June repurchase
03 October DONG Energy enters into agreement 20 January
DONG Energy increases stake in to divest Oil Terminals to Inter Pipe- Announcement of results and accept-
Syd Arne field line Fund ance regarding DONG Energy’s invi-
16 June tation to tender hybrid capital bonds
Q3 DONG Energy and ScottishPower Re- for repurchase
29 September newables to build West of Duddon 13 January
DONG Energy appoints new Sands offshore wind farm DONG Energy has successfully issued
Executive Vice President 15 June new hybrid capital bonds
27 September DONG Energy’s repair solution only 13 January
Disposal of Barrow offshore wind farm sufficient solution for Siri DONG Energy resumes intention to
transmission assets 15 June issue new hybrid capital bonds and
01 September Permanent solution for North Sea announces invitation to tender exist-
Marubeni Corporation to become co- platform Siri ing hybrid capital bonds for repur-
owner of Gunfleet Sands offshore chase
19 May
wind farm Interim financial report - Q1 2011 – 11 January
Sound and satisfactory results Financial calendar 2011
126 Additional information – DONG Energy Group annual report 2011

Glossary
Glossary
2P reserves: Sum of Proved reserves plus Probable re- DUC: Dansk Undergrunds Consortium.
serves (Society of Petroleum Engineers and World Petro-
leum Congress (SPE/WPC) reserve classification stand- EEX: European Energy Exchange, German power exchange.
ards).
EFET: European Federation of Energy Traders. Develops
APX: Amsterdam Power Exchange, Dutch power exchange. European standard contract documentation that can be
used for mutual trading in energy.
BAFA: Bundesamt für Wirtschaft und Ausfuhrkontrolle.
EMIR: European Market Infrastructure Regulation. Its pur-
Biomass: Also known as biomass fuel. A term for all com- pose is to improve transparency and enhance market
bustible organic materials, including straw, wood chips and safety and regulatory oversight.
wood pellets. CO2 emissions produced by the combustion
of biomass are not covered by ETS. Biomass can be used in ETS: The EU Emissions Trading Scheme, which aims to re-
both central power stations and small-scale CHP plants. duce emissions of carbon dioxide and combat climate
change by means of a system that grants CO2 emissions
Cash-Flow-at-Risk (CFaR): Indicator that reflects the allowances and enables electricity producers and other
maximum amount by which cash flow may fall, with a prob- emitters to trade these CO2 emissions allowances.
ability of 95%, compared with expected cash flow over the
risk management time frame. EUA: European Union Allowance. The allowances available
within the EU borders.
Central power station: A larger power station, typically
with a net installed power capacity of more than 100 MW. Exploration and appraisal wells: Wells drilled to discover
and evaluate gas or oil in an unproved area to find new re-
CHP plant: A Combined Heat and Power (CHP) plant gen- serves in an area in which hydrocarbon discoveries have
erates both heat and electricity in the same process. The previously been made or to delineate a known accumula-
heat generated may be used for industrial purposes and/or tion.
district heating.
FIFO principle – coal inventories: First in, first out. DONG
CHP plant, small-scale: A Combined Heat and Power Energy buys physical coal up to one year ahead of delivery.
Plant (CHP), typically with a net installed power capacity of To ensure security of supply, the inventory of coal typically
less than 100 MW. corresponds to 4 to 6 months’ consumption. As the value
of coal inventories is recognised in the balance sheet using
Climate partnerships: The possibility of providing custom- the FIFO principle, coal purchased in a period with high
ers with energy-saving solutions. Including the possibility market prices, followed by a period with declining coal
of offering residential customers energy-saving Cleantech prices, will be recognised as a cost of sales item at prices
solutions and advice, typically in the form of geothermal exceeding the current market price level.
heating, window insulation, etc. The possibility of offering
business customers actual partnerships by providing en- Fossil fuels: Fuel resources such as coal, coal products,
ergy-saving advice, with the energy savings achieved typi- gas, crude oil and other hydrocarbon products.
cally being used to buy green electricity (from wind tur-
bines) from DONG Energy. Partnerships with business FTE: Full Time Equivalent. The number of full-time employ-
customers open up other opportunities for collaboration ees during a fixed time period. An FTE of 1.0 indicates that
between energy company and customer in the longer term. the person is equivalent to a full-time worker, while an FTE
of 0.5 indicates that the person works part time only.
CO2: Carbon dioxide.
Green dark spread (GDS) and contribution margin from
CO2 allowances: Carbon dioxide emissions allowances electricity generation: Green dark spread represents the
subject to the European Union Emissions Trading Scheme contribution margin per MWh of electricity generated at a
(EU ETS). coal-fired power station of a given efficiency. It is calcu-
lated as the difference between the market price of electric-
Derivatives: Financial and physical instruments that can ity and the cost of the coal (including associated freight
be used to guarantee a specific price for the purchase or costs) and CO2 allowances used to generate the electricity.
sale of, for example, commodities and currency. DONG Energy’s contribution margin from electricity gener-
ation is affected, among other things, by whether electric-
DK1 and DK2: Area prices for electricity in West Denmark ity is generated at times during the 24-hour cycle when
(DK1) and East Denmark (DK2). prices are relatively high (peak) or at times when prices are
DONG Energy Group annual report 2011 – Additional information 127

relatively low (off-peak). The contribution margin is also af- Peak and off-peak: Reflects prices for electricity generated
Glossary
fected by the fact that the cost of coal for accounting pur- at times during the 24-hour cycle with high demand and
poses differs from the market price resulting from applica- low demand respectively.
tion of the FIFO (first-in, first-out) principle to inventories.
In addition, DONG Energy is allocated a specific volume of PJ: Petajoule, a unit of energy. 1 PJ is equivalent to 1,000 TJ
CO2 emissions allowances. or 1,000,000 GJ or 1,000,000,000 MJ.
Green spark spread (GSS): Green spark spread represents REMIT: Regulation on Energy Markets Integrity and Trans-
the contribution margin per MWh generated at a gas-fired parency. EU Regulation on integrity and transparency in
power station of a given efficiency. It is measured as the energy markets to prevent insider dealing and market ma-
difference between the market price of electricity and the nipulation.
costs of gas and CO2 allowances used for generating the
electricity. SO2: Sulphur dioxide.
Hydrological balance: Most of the electricity generated in SPE-PRMS Guidelines: Internationally accepted guide-
the Nordic countries comes from hydro electric stations, lines for the evaluation of gas and oil reserves prepared by
and their output depends on their water reservoir levels. Society of Petroleum Engineers (SPE).
The hydrological balance reflects whether the level in the
Norwegian and Swedish water and snow reservoirs is Supply obligation: A company with a supply obligation is
above or below normal. bound by law to deliver electricity or gas to a certain geo-
graphic area at prices approved by the Danish Energy
ISDA: The International Swaps and Derivatives Associa- Regulatory Authority.
tion. Develops standard contract documentation that can
be used for mutual trading in derivative financial instru- Thermal generation: Electricity and heat generated
ments. through the combustion of fossil fuels, biomass or waste.
LEBA: London Energy Brokers’ Association. Time lag: Oil price changes and changes in the USD ex-
change rate impact on gas sales prices relatively quickly,
LNG: Liquefied Natural Gas. Gas that has been liquefied by whereas purchase prices are adjusted with a time lag effect
cooling to minus 161 degrees Celsius. LNG takes up 600 of up to a year and a half. For example, a change in the
times less space than conventional gas. LNG can be trans- price of oil and/or the USD exchange rate in January may
ported in customised tankers, enabling it to be transported affect DONG Energy’s sales prices already in February, but
from remote destinations. In the receiving terminal, the may not be felt on purchase prices before the summer of
LNG is vaporised and pressurised before being routed into the following year. The impact on the individual periods
the transmission system for onwards distribution and sale. consequently varies, and this may lead to considerable
fluctuations in operating profit from one period to the next
LTIF: Lost Time Injury Frequency. DONG Energy defines in the case of oil price changes. However, the fluctuations
lost time injuries as occupational injuries resulting in at will balance each other out over a number of years.
least one day’s absence from work in addition to the day of
the injury. TTF: Title Transfer Facility, Dutch gas hub.
MiFID: Markets in Financial Instruments Directive. EU Di- TWh: Terawatt hour. The amount of energy generated in
rective designed to harmonise the European Union’s finan- one hour with the effect of 1 TW. 1 TWh is equivalent to
cial markets and increase cross-border investments. 1,000 GWh or 1,000,000 MWh.
Million boe: Million barrels of oil equivalent. Value at Risk (VaR): Indicator that reflects the maximum
amount by which the value of a position will fall in the
NBP: National Balancing Points, UK gas hub. course of one day, with a probability of 95%, given normal
market conditions.
Nord Pool: The Norwegian-based Nordic power exchange,
which facilitates electricity trading in Norway, Sweden, Fin- Wood pellets: Wood that has been pulverised and pel-
land and Denmark. letised under heat and high pressure.
NOx: Nitrogen oxides.
Operator: The company appointed to conduct operations

under an exploration, production and/or development li-
cence or concession governing an oil or gas licence or con-
cession area.
128 Additional information – DONG Energy Group annual report 2011

Definitions of performance highlights
EBITDA adjusted for hydrocarbon tax EBITDA adjusted for hydrocarbon tax. Hydrocarbon tax is a result of the Group’s oil and gas
extraction.
Funds From Operation (FFO) Cash flows from operating activities before change in net working capital.
Gross investments Cash flows from investing activities, excluding dividends received from associates and equity
investments, purchases and sales of securities, loans to jointly controlled entities, and disposals
of assets and enterprises.
Net investments Gross investments less disposals of assets and enterprises. To/from this is added/deducted
acquired/transferred debt in connection with acquisitions and disposals of enterprises, and
deducted non-controlling interests’ share of investments in fully consolidated investment
projects, and deducted the selling price of non-controlling interests.
Interest-bearing net debt

Financial gearing 1
Total equity
Adjusted net debt to cash flows from Adjusted net debt
operating activities Cash flows from operating activities
Adjusted net debt Interest-bearing net debt plus 50% of the hybrid capital due in 3005.
Adjusted net debt to Adjusted net debt
EBITDA EBITDA
Adjusted operating profit
Return on capital employed (ROCE)
Average invested capital
Adjusted operating profit EBIT adjusted for hydrocarbon tax plus profit from associates less interest element of decom-
missioning obligations.
Capital employed Non-interest-bearing net assets corresponding to non-interest-bearing assets less non-interest-
bearing liabilities.
(Capital employed beg. of year + capital employed year end)

Average capital employed
2
Adjusted operating profit
Adjusted return on capital employed
Average adjusted capital employed
Adjusted capital employed Capital employed less property, plant and equipment under construction and exploration assets,
and less production assets transferred from property, plant and equipment under construction
in the past six months.
Profit for the year

Earnings per share (EPS) of DKK 10 2
Average number of shares
Proposed dividends per share (DPS) Total proposed dividend
of DKK 10 1 Number of shares year end
Total proposed dividend
Payout ratio
Profit for the year attributable to equity holders
(Shares beg of year x D ) + (Shares year end x (365-D))
Average number of shares 3
365
Net working capital external Inventories, trade receivables, associates and jointly controlled entities and other operating
transactions current assets less trade payables and liabilities to associates and jointly controlled entities and
other operating current liabilities. Prepayments and deferred income are not recognised in the
determination of net working capital.
Net working capital intragroup Intragroup trade receivables less intragroup trade payables.
transactions
1 The calculation is in accordance with ‘Recommendations & Financial Ratios 2010’ published by the Danish Society of Financial Analysts.
2 Earnings per share (EPS) is determined in accordance with IAS 33.
3 D = number of days prior to a capital increase, including the day on which the proceeds are received.
DONG Energy A/S
Kraftværksvej 53
7000 Fredericia
Denmark
Tel +45 99 55 11 11
www.dongenergy.com

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MOVING ENERGY

FORWARD GROUP ANNUAL REPORT 2011

DONG Energy is one of the leading energy

trading in energy and related products in The Danish State 76.49%

Revenue EBITDA Profit for

DKK DKK the year DKK

56.8 BN 13.8 BN 2.9 BN

Cash flows from net investments Rating

12.6 BN 13.1 BN A-/Baa1

Offshore wind in operation Gas sales

Denmark........................................ 45% Denmark....................................... 29%

Heat generation Denmark....................................... 28%

Electricty sales Denmark....................................... 29%

dong energy’s strategic directions

Wind and biomass growth Robustness via the

Growth in the production Development of the flexible

Management’s review ADDITIONAL information

DONG Energy Group annual report 2011 – Management’s review 1

Note: Only selected highlights in 2011 are listed. A complete list of

2 Management’s review – DONG Energy Group annual report 2011

DONG Energy Group annual report 2011 – Management’s review 3

2011 2010 2009 2008 2007 2011 2010

EBITDA: 13,770 14,135 9,311 13,428 9,323 1,848 1,898

Revenue, DKK billion Profit, DKK billion

Profit after tax EBITDA

4 Management’s review – DONG Energy Group annual report 2011

2011 2010 2009 2008 2007 2011 2010

EBITDA: 15,595 14,089 8,840 13,622 9,606 2,093 1,892

EBIT 7,925 8,074 3,757 8,004 4,783 1,064 1,084

Investments and cash flows, DKK billion Capital structure, times

DONG Energy Group annual report 2011 – Management’s review 5

6 Management’s review – DONG Energy Group annual report 2011

DONG Energy Group annual report 2011 – Management’s review 7

Biomass must be sustainable

8 Management’s review – DONG Energy Group annual report 2011

business and strategy

By 2020, DONG Energy wants to halve its CO2 emissions

At the same time, DONG Energy wants to double EBITDA 300

itive edge and strong capabilities: design, construction and 16 Likvider

The four main strategic directions 2

DONG Energy pursues four main strategic directions to achieve 0

Wind and biomass growth Robustness via the

Growth in the production Development of the flexible

DONG Energy Group annual report 2011 – Management’s review 9

10 Management’s review – DONG Energy Group annual report 2011

DONG Energy Group annual report 2011 – Management’s review 11

Growth in the production and sourcing of oil and gas

12 Management’s review – DONG Energy Group annual report 2011

DONG Energy Group annual report 2011 – Management’s review 13

Robustness via the integrated business model

DONG Energy wants to create value by optimising and developing the

14 Management’s review – DONG Energy Group annual report 2011

DONG Energy Group annual report 2011 – Management’s review 15

Development of the flexible energy system

With a rising proportion of wind energy, there is a growing need to be able

16 Management’s review – DONG Energy Group annual report 2011

DONG Energy Group annual report 2011 – Management’s review 17

Continued growth and value creation

trading in energy and related products in The Danish State 76.49%