============= Page 1 of 24 ============= v Slides Cause Financial and Earnings Report E0004393369 EXH004-00663 GOVERNMENT EXHIBIT 616 Crim. No. H-04-25 (S-2) ============= Page 2 of 24 ============= Second- Quarter 2001 Diluted EPS Plan. Actual EXH004-00664 ECO04393370 BOD _ 08-10-01-1 ============= Page 3 of 24 ============= Diluted EPS Six Months Ended June 30, 2001. Plan Actual $0.94 0 Recurring Non-recurring BOD 08-10-01-2 E0004393371 EXH004-00665 $0.84 ============= Page 4 of 24 ============= Transportation & Distribution Transportation & Storage Portland General Group Wholesale Americas Europe Global Markets Industrial Markets Global Assets Other Wholesale Enron Energy Services Enron Broadband Services Corporate and Other Azurix Recurring Net Income Net Income ($ in millions) Second Quarter Plan Actual Six Months Plan Actual $ 37 $ 37 $ 95 $ 97 _ 27 48 59 174 756 351 1,289 47 34 82 86 33 9 52 27 4 8 10 14 45 (4) 80 (1) 20 (397) .96 (575) 25 33 52 52 (10) (69) (35) (90) (6) 1 (45) (85) (20) (31) (37) (63) $349 $404 $749 810 E0004393372 EXH004-00666 ============= Page 5 of 24 ============= Diluted EPS Second Quarter Actuals 2000 2001 E0004393373 BOD 08-10-01-4 EXH004-00667 ============= Page 6 of 24 ============= Diluted EPS Six Months Ended June 30 - Actuals 2000 2001 $0.94 26% Growth $0.92 $0.73 D Recurring) Non-recurring BOD_08-10-01-5 E0004393374 $0..73 73 $0 =XH004-00668 ============= Page 7 of 24 ============= Second Quarter Earnings by Segment ($ in millions) Wholesale Energy Operations Transmission & Distribution Retail Energy Services Broadband Services Corporate and Other Interest, MI, & Income Tax Net Income Second Quarter Six Months 2001 2000 2001 2000 $802 $415 $ 15557 $844 142 139 335 372 60 46 100 52 (102) (8) (137) (8) (109) 17 (267) (27) (389) (320) (778) (606) $404 $ 289 $810 $627 E0004393375 Boy 08-10-o1-6 EXH004-00669 ============= Page 8 of 24 ============= Balance Sheet Debt ($ in millions) 2001 June YTD Estimate Opening Debt Balance Funds Flow from Operations Change in Working Capital * Changes in Deposit / Margin Activity Proceeds from Sales of Assets Capital Expenditures Equity Investments Dividends (increase)/Decrease in Cash on Hand Other Period Activity Period Ending Debt Balance Key Credit Ratios Funds Flow / Interest Debt / Balance Sheet Capital * Excluding Deposit/Margin Activity 2000 June YTD Full Year $(8,152) $(10,229) $(10,229) (23) 1,883 3,000 (174) (500) 712 (350) (2,642) (2,642) 105 1,345 1,385 (1,009) (1,200) (1,910) (1,350) (1,384) (1,551) (265) (256) (544) (430) 527 527 (49) (356) (352) (3,545) (2,583) (1,375) $(11,697) $(12,812) $(11,604) 0.95 4.91 4.08 46.3% 46.0% 42.7% E0004393376 BOD 08-10-01-7 EXH004-00670 ============= Page 9 of 24 ============= EXH004-00671 Enron Corp. Board of Directors. Meeting IR Slides August 13, 2001 E0004393377 BOD 08-10-01-8 ============= Page 10 of 24 ============= FXH004-00672 2001 YTD Total Return to Share (Through 8/08/01) Enron DJIA holder -62% S&P 500 Energy Peers NASDAQ Broadband Peer Group E0004393378 Boo 0s-10-01-s ============= Page 11 of 24 ============= Merchant Energy Peers 2001 YTD Total Return (Through 8/08/01) -48% a ECOO4393379 EXH004-00673 BOD 08-10-01-10 7% A°L ============= Page 12 of 24 ============= Relative Valuation (P/E Ratio*) *Based on 2001 EPS Estimates EXH004-00674 E0004393380 BOD 08-10-01-11 ============= Page 13 of 24 ============= EXH004-00675 Recent Investor Concerns California India a Enron Broadband Services Cash Flow & Financing Vehicles "Trading" in Enron's Business Model Insider Stock Sales Progress on International Asset Sales E0004393381 BOD 08-10-01-12 ============= Page 14 of 24 ============= Receivables Exposure -Fully Reserved -Active PG&E Creditors' Committee Member 0} Potential Wholesale Refunds Minimal Enron Amounts Cited -Possible Net Amount owed to Enron f Contempt Issue -Enron Stance Centered Around Due Process -Near Resolution/ Compliance No Impact Expected on 2001 Earnings Results E0004393382 BOD 08-10-01-13 -XH004-00676 ============= Page 15 of 24 ============= India Dabhol Power Update 0 740 MW Phase I Operational; 1,444 MW Phase II 95% Complete; Construction' Suspended f Customer Has Multiple Defaults and Has Repudiated the Contract 0 Owners and Lenders Pursuing Well-Defined Contractual Remedies -- Declared Political Force Majeure - Initiated 6-Month Cure Period -- Continued Enforcement of Contractual Rights $875 Million Total Investment by Enron E0004393383 BOD 0s-10-o1-14 =XH004-00677 ============= Page 16 of 24 ============= Enron Broadband Services General & Administrative Costs (Millions) EXH004-00678 ($73) 2Q01 Actual 4Q01 Est. Quarterly - Target Level E0004393384 BOD 08-10-01-15 ============= Page 17 of 24 ============= Cash. Flow From Operations (Millions) Reported in Financial Statements Cash Flow Impact of Deposits to 77Q $1,640 $651* ($900) First Half $1,880 r~ Negligible 1997 1998 1999 2000 2001E First Half *Excluding J-Block Settlement ($2,300) 1997 1998 1999 2000 2001E First Half E0004393385 B0D 08-1o-o1-16 EXH004-00679 ============= Page 18 of 24 ============= Cash Flow from Operations Excluding Deposits (Millions) $2,899 K First Half $1,640 $1,228 i $651* i 1997 1998 1999 2000 20.01E *Excluding J-Block Settlement E0004393386 EXH004-00680 BOD 08-10-01-17 $3,000 ============= Page 19 of 24 ============= Off-Balance Sheet Transactions Funding Cost-Effectively Expands. Enron's Credit Capacity -Primarily Reflects Whitewing and Marlin Issuances Eliminating Related Party Relationship with LJ M _~ Primarily Supported by Asset Values; Secondary Support from Equity-Backed Commitments EC004393387 BOD 08-10-01-18 EXH004-00681 ============= Page 20 of 24 ============= Contrasting Business Approaches Example: Providing Reliable Power Supply Source from Dedicated Plant Merchants --- -- Aggregate Power from Market -----' Sources Aggregate Cheapest Power from Numerous, Deep Market Sources ^\ Retail Customer Utility Customer r--s EXH004-00682 E0004393388 BOD 08-10-01-19 ============= Page 21 of 24 ============= Enron's Unique Network Alternatives Example: Providing Reliable Power Supply - ' Aggregate Cheapest Power from Numerous, Deep Sources Toll ~-'~ ~ ~ ~= z s~-~~ = Contract for Capacity; Aggregate f ==~, Cheapest Gas Supply Site, Permit, Build Retail Customer O Utility Customer Plant C> Merchant Role Power Market 0 Gas Market Build Plant; Aggregate ~=- Cheapest Gas Supply Displace Utility Load; Source Alternate Fuel y Reduce Consumption Influence Demand E0004393389 BOD 08-10-01-20 -XH004-00683 ============= Page 22 of 24 ============= Largest Shareholders* (As of June 30, 2001) Name Janus Capital Corp. Putnam Investment Management, Inc. Alliance Capital Management L.P. Fidelity Management & Research Smith Barney Asset Management Government of Singapore Investment Corp Northern Trust Global Investments Merrill Lynch Asset Management AIM Management Group UBS Warburg LLC Dresdner RCM Global Investors American Express Financial Advisors MS Dean Witter Advisors Rorer Asset Management Deutsche Asset Mgmt. Ltd. (Morgan Grenfell) Goldman Sachs & Company Banc of America Capital Management Robur Kapital Forvaltning A.B. Evergreen Institutional (First Union NBC) American Century Investment Management *Excluding Index Funds Change From Shares Held Location 3/31/01 42,000,000 26,000,000 19,800,000 16,000,000 14,000,000 13,700,000 9,600,000 9,500,000 9,500,000 8,000,000, 6,700,000 6,350,000 6,100,000 6,000,000 5,600,000 4,800,000 4,500,000 4,400,000 4,300,000 4,200,000 Denver Boston New York Boston New York Singapore Chicago Plainsboro Houston New York San Francisco Minneapolis New York Philadelphia London (6,000,000) 7;000,000 5,800,000 (3,500,000) 5,570,000 200,000 1,775,000 1,500,000 3,000,000 100,000 (7,1, 00,000) 200,000 (200,000) New York St. Louis Stockholm Charlotte Kansas City E0004393390 (200,000) 700,000 (4,700,000) BOD 08-10-01-21 EXH004-00684 ============= Page 23 of 24 ============= Bank of America Montgomery Securities Dan Tulis/Will Maze CIBC Oppenheimer Bill Hyler CS First Boston Curt Launer Dain Rauscher Wessels Mark Easterbrook Edward Jones Zach Wagner First Albany Bob Christensen Goldman Sachs David Fleischer J.P. Morgan Anatol Feygin Lehman Brothers Richard Gross Merrill Lynch Donato Eassey Morgan Stanley Dennis Higgins Prudential Securities Carol Coale Salomon Smith Barney Ray Niles Simmons & Co. Jeff Dietert U.B.S. Warburg Ron Barone A.G. Edwards Mike Heim Bear Stearns Robert Winters Commerzbank Securities Andre Meade Howard. Weil Rebecca Followill Bernstein Duane Grubert Sanders Morris John Olson Strong Buy $ 60 Buy $ 65 Strong Buy $ 84 Strong Buy $ 76 Buy _. Strong Buy $ 80 Buy $ 68 Buy $ 90 Strong Buy $ 72 Buy $ 75 Buy $ 85 Buy $ 55 Buy $ 75 Buy $ 55 Strong Buy $ 70 Accumulate Attractive Accumulate Accumulate Hold Hold $ 55 $ 98 $ 70 $ 76 BOD 08-10-01-22 E0004393391 EXH004-00685 ============= Page 24 of 24 ============= EXH004-00686 E0004393392 BOD 08-10-01-23