1. Enron Europe All Staff Update 20 July 2000
your questions to Enron Europe Office of the Chairman prior to and during the presentation or dial direct into the Auditorium - ext 30550

2. Agenda 10:00 Introduction & Enron Joe Gold Europe Update
10:10 Enron Corp Ken Lay - Business Highlights
10:25 New Procurement to Beth Apollo, Payment (P2P) Initiative Sam Kemp
10:35 Q & A Ken Lay, Joe Gold

3. How to Submit a Question
Joe Gold
How to Submit a Question
your questions to Enron Europe Office of the Chairman during the presentation
Dial direct into the Auditorium - ext OR
…Shout out at the end - don’t be afraid!

4. Second Quarter Review Enron Europe Limited
Joe Gold
Second Quarter Review Enron Europe Limited
Joe Gold

5. Enron’s European Network Strategy
Joe Gold
Enron’s European Network Strategy
Natural Gas
Coal
Crude & Products
Pulp and Paper
Power
Weather
Metals
Establish Europe’s Leading Energy Network
Capture Sustainable First Mover Advantage
Extend the Network
Strong, Competitive Position in High Growth Markets
Exploit the Network
Create Significant Value to Enron and its Customers

6. Snapshot of Enron Europe Accomplishments
Joe Gold
Snapshot of Enron Europe Accomplishments
Acquisition of MG plc
Metals 
Sale of Sutton Bridge
Power Station
Landmark coal supply
contract with British Energy UK 
Live web-cast coverage
of Wimbledon Tennis
Championship
EBS 
1 July launch of
Enron Directo in
Spain
Acquisition of ERPAG
EES 
Strategic alliance with
Swiss CityPower A.G.
Arcos de la Frontera
awarded environmental
permit and administrative
authorisation
Continental 

7. Volume and Transaction Growth No. of Transactions per day
Joe Gold
Enron Europe
Volume and Transaction Growth
Total Volumes*
(BBtue/d)
Power Volumes*
(BBtue/d)
Gas Volumes (BBtue/d)
No. of Transactions per day
3,725
Power
Gas
9,640
Continent
Nordic Region
U.K.
206
5,915
190 95 63
6,980
4,552
2,428 40 34
4,051
1,550
2,501
1,236 66 87 24
2,269 77 2
1,033 25 17 10 25 14
1998
1999
Q1 2000
Q2 2000
1998
1999
Q1 2000
Q2 2000
1998
1999
Q1 2000
Q2 2000
1998
1999
Q1 2000
Q2 2000
* Physical and Financial
Note: In the U.K and parts of Europe, volumes are physically transported by the national grid operators and financially settled by energy service providers.

8. New Procurement to Payment (P2P) Initiative
Beth Apollo / Sam Kemp
New Procurement to Payment (P2P) Initiative
Beth Apollo / Sam Kemp

9. Procurement Process Strategy Buying
Beth Apollo / Sam Kemp
Procurement Process
Strategy
Buying
Work with Enron Europe units to determine needs
Consolidate vendors where possible
Negotiate advantageous terms for Enron with vendors
Policy Setting
Contract and maintain portfolio of preferred providers
Work with Houston group to ensure European Benefits
Achieve greater cost transparency
Electronic Commerce
Transaction/Processing oriented
Invoice Consolidation
Promote use of purchase orders
Paperless
Approvals Process
Order Taking
Goods Receipt
Regular communication with the entire company on opportunities to save!

10. Why a Dedicated Procurement Organisation?
Beth Apollo / Sam Kemp
Why a Dedicated Procurement Organisation?
Enron Europe has reached cost “Critical Mass”
Improve cost / price transparency throughout the organisation
Attention on “New Economy” practices including purchasing tools and paperless office.

11. “Critical Mass” Beth Apollo / Sam Kemp
* includes both forecasted capital and expense amounts

12. Potential Opportunity Within Travel
Beth Apollo / Sam Kemp
Potential Opportunity Within Travel
Area of Focus:
Continental Airlines Houston/London Route
Current Spend/Background:
$2,800,000 per year
73% Business class, average costs £3,500
27% Coach, average cost £1,000
Quick wins
Pre-purchased Business class tickets £2,500 (potential savings of £300k+)
Early bookings for flights and hotels

13. Improving Cost / Price Transparency
Beth Apollo / Sam Kemp
Improving Cost / Price Transparency
Develop improved processes, systems and policy
Review key supplier relationships:
Within Enron Europe
Integrate with Global Strategic Sourcing group
Help employees make informed buying decisions
Improve accountability and ownership

14. New Economy Practices Launch eAPW (Accounts Payable Workflow)
Beth Apollo / Sam Kemp
New Economy Practices
Launch eAPW (Accounts Payable Workflow)
Develop and launch eBUY

15. eAPW (Accounts Payable Workflow)
Beth Apollo / Sam Kemp
eAPW (Accounts Payable Workflow)
Paperless / Invoice imaging / Automated authorisation / SAP integrated
eAPW has been developed in-house with outside assistance
Timetable:

16. eBUY Materials management
Beth Apollo / Sam Kemp
eBUY
Materials management
Paperless / Desktop / Web based requisition and approval / SAP integrated
eBUY has been developed in-house with outside assistance
Timetable:

17. Q & A
your questions to Enron Europe Office of the Chairman during the presentation
Dial direct into the Auditorium - ext OR
…Shout out at the end - don’t be afraid!