============= Page 1 of 18 ============= BOARD OF DIRECTORS' MEETING December 12, 2000 E0004392306 EXH005-02480 ============= Page 2 of 18 ============= Financial and Earnings Report E0004392307 EXH005-02481 ============= Page 3 of 18 ============= Fourth Quarter 2000 Recurring Diluted EPS 13% Growth 1998 1999 2000 2000 Actual Actual Forecast Plan y~o E0004392308 1 EXH005-02482 ============= Page 4 of 18 ============= Recurring Diluted EPS Year Ended December 31, 2000 20% Growth 1998 Actual 1999 Actual 2000 Forecast 2000 Plan y~o E0004392309 EXH005-02483 ============= Page 5 of 18 ============= Net Income . a l / ($MM) Fourth Quarter Total Year Plan Ac al' Plan Actual Transportation & Distribution Transportation & Storage $ 100 $ 55 $263 $263 Portland General Group 30 38 129 145 Wholesale North America 56 1 329 641 Europe 36 44 125 140 International Regions IUt n ,y<~ 166 3 227 56 Enron Energy Services ' 18 20 - -37 46 Enron Broadband Services (3) (32) (42) (71) Corporate and Other (55) 41 124 65 Azurix (3) (22) 19 63 Recurring Net Income $345 $305 $1,173 E0004392310 $11224 =XH005-02484 ============= Page 6 of 18 ============= r .. Fourth Quarter Earnings by Segment ($ MM) Fourth Quarter Total Year 2000 , 1999 2000 1999 Wholesale Energy Operations $571 $263 $ 2,054 $ 1,317 Transmission & Distribution 190 202 719 685 Retail Energy Services 37 7 107 (68) Broadband Services (32) - (60) - Corporate and Other ._ r; (72) 1 (227) 48 Interest, MI, & Income Tax (389) (214) (1,369) (1,025) Net Income - recurring $305 $259 $ 1,224 $957 E0004392311 y~o =XH005-02485 ============= Page 7 of 18 ============= Balance Sheet Debt 2000 Activity ($MM) Total Year Plan Opening Debt Balance $(89152) $(81200) Funds Flow from Operations 2,840 2,300 Change in Working Capital 140 40 Proceeds from Sales of Assets 562 1,307 Capital Expenditures (2,142) (1,764) Equity Investments N11, &'j Tkl ~t (2,468) (1,597) Dividends (527) (450) Other 47 (424) Period Activity (1,548) (588) Period Ending Debt Balance $ 9,700 $_J§57881 y9o E0004392312 i EXH005-02486 ============= Page 8 of 18 ============= Financial and Earnings Report E0004392313 EXH005-02487 ============= Page 9 of 18 ============= Investor Relations Update E0004392314 EXH005-02488 ============= Page 10 of 18 ============= Total Return to Shareholder 6 2000 Year-to-Date. ;~ -66.5% Energy Peer Group Enron DJIA S&P 500 *Through December 6; Returns Include Dividends NASDAQ Broadband Peer Group E0004392315 EXH005-02489 ============= Page 11 of 18 ============= Energy Peer Group -Total Return (Through December 6) 171% YN CGP KMI DUK PG ENE PCG AES D 9 -31.3% WMB S&P NASDAQ 500 )l 0~ -3ti E0004392316 EXH005-02490 ============= Page 12 of 18 ============= Relative Valuation (PIE Ratio*) December 31, 1999 31x *Based on 2000 EPS December 6, 2000 E0004392317 =XH005-02491 Enron S&P Peer 500 Group Enron S&P Peer 500 Group ============= Page 13 of 18 ============= Energy Peer Group - PIE Ratio* .~ *Based on 2000 EPS E0004392318 EXH005-02492 ENE DYN KMI AES WMB CGP EPG DUK PcG s&P 500 ============= Page 14 of 18 ============= ~ S&P 100 foe -PIE Multiples E0004392319 =XH 005-02493 ============= Page 15 of 18 ============= Y~ Largest Shareholders* (As of November 28, 2000 '~ Name Janus Capital Corporation ~~ _, arc ,.L-f Fidelity Management and Research Putnam Investment Management, Inc. American Century Investment Management American Express Financial Advisors Smith Barney Asset Management Northern Trust Global Investments Morgan Stanley Dean Witter Advisors Merrill Lynch Asset Management Dresdner RCM Global Investors UBS Warburg Goldman Sachs Asset Management Deutsche Asset Mgmt./Morgan Grenfell AIM Management Group Van Kampen Funds Oppenheimer Funds Rorer Asset Management Robur Kapital Forvaltning MacKay Shields First Union MFS Financial Services *Excluding Index Funds Shares Held Location 48,000,000 19,600,000 18,000,000 14,800,000 14,200,000 12100%000 9,400,000 7,600,000 7,225,000 6,000,000 6,000,000 5,800,000 5,600,000 5,500,000 5,500,000 5,200,000 5,000,000 4,600,000 4,065,000 3,900,000 3,376,000 Denver Boston Boston Kansas City Minneapolis New York Chicago New York Plainsboro San Francisco Stamford New York London Houston Houston New York Philadelphia Stockholm New York Charlotte Boston Change From 6130100 (11,700,000) 2,900,000 1,100,000 800,000 1,680,000 (2, 000, 000) 300,000 (4,877,000) 875,000 300,000 (1,500,000) 955,000 3,400,000 3,200,000 1,388,000 650,000 (435,000) 70,000 650,000 E0004392320 ;x =XH005-02494 ============= Page 16 of 18 ============= . Enron - Segment Valuation -~ ~ `° #1 (Estimated Analyst Consensus) Per Business Segment Valuation Method Total Share k (Millions) Wholesale 35% Premium to Market PIE $32,000 $38.00 (32x)^ 2000 Net Income ~~ x Retail` Income Analyst Consensus - $13,000 $15.00 NPV Approach Broadband Services Analyst Consensus - $9,000 $10.00 NPV Approach Transportation & GPG -15 PIE x Distribution 2000 Net Income. PGN - $1.7 Billion $6,000 $7.00 $60,000 $70.00 E0004392321 =XH005-02495 ============= Page 17 of 18 ============= Enron - Segment Valuation (Est.) Mid-Year 2000 $40 $18 Wholesale Retail EBS T&D 5 Total December 2000 $7 $15 $38 Wholesale $70 Retail EBS T&D Total E0004392322 EXH005-02496 ============= Page 18 of 18 ============= Investor Concerns/Issues ~ Enron Broadband Services ! General Broadband Industry Valuation Declines Concerns on Rate of Market Acceptance of Bandwidth Trading Ability to Deliver on Content Services ~ Azurix - Enron Write-off Risk Related to Reduced Valuation - Enron Capital/Cash Commitment California Wholesale Power Issues - Refunds, Pr 0ce, Caps, Re-Regulation, Lawsuits, Etc. New Power Company - Enron's Share of Equity Losses ("Burn Rate") - Market Value Decline v~ General - Earnings Generation from UM (Related Party) Activity E0004392323 =XH005-02497