============= Page 1 of 8 ============= 2000 Enron Strategic Goals Status E0004392344 EXH005-02518 ============= Page 2 of 8 ============= 2000 Enron Strategic Goals Overall Goal: Achieve earnings and funds flow targets included in the 2000 Plan. Status: Complete All items are currently forecast to exceed Plan. Plan Net Income Earnings per share Funds Flow $ 1,144 million $1.35 $ 2,300 million Forecast $ 1,224 million $1.42 $ 2,840 million E0004392345 y~o EXH005-02519 ============= Page 3 of 8 ============= 2000 Enron Strategic Goals Overall Goal: Complete sale (and total risk transfer) of merchant assets so that total merchant investments are $200 million or less by year end. Status: In Progress • Merchant assets decreased from $1.1 billion at year end 1999 to $500 million at year end 2000. • Balance includes assets that management considers advantageous to retain at this time. • Monetization program is on-going. $2.1 billion of assets were sold during 2000. y~o E0004392346 EXH005-02520 ============= Page 4 of 8 ============= 2000 Enron Strategic Goals Risk Assessment and Control Goal: Establish risk and trading control process for risks unique to EES. Status: Complete • Systems have been established and monitoring controls are in place. • A study of the DSM business has been completed and the results presented to the Finance Committee. • A task force has been put in place and has established a work plan. • Significant progress has been made against these recommendations. • Tests have highlighted focus areas to determine where the capital dollars are best employed. y&09 E0004392347 EXH005-02521 ============= Page 5 of 8 ============= 2000 Enron Strategic Goals Risk Assessment and Control Goal: Solidify the global risk management policy beyond Houston and London. Status: Complete • Project Doorstep inspected every office within Enron to determine if trading was taking place and if controls were being adhered to. • A system was developed to routinely prompt surprise inspections and monitor if the recommendations are being adhered to. Ike ti9 E0004392348 O EXH005-02522 ============= Page 6 of 8 ============= 2000 Enron Strategic Goals Overall Goal: Maintain premium valuation multiples for Enron. Achieve total return to Enron's shareholders in excess of its peer group and the S&P 500 index. Status: Complete Enron's relative valuation versus the market and peer group improved significantly, as follows: Enron Corp. Peer Group S&P 500 PE Multiple * 12/31/99 31x 16x 26x PIE Multiple * 12/06/00 51x 24x 23x * Based on 2000 E.P.S. estimates. E0004392349 ti EXH005-02523 ============= Page 7 of 8 ============= 2000 Enron Strategic Goals Overall (Continued) Enron's total return to shareholder for 2000 year to date has significantly exceeded most comparative indexes. Total Return 2000 (YTD through 12/06) Enron Corp. S&P 500 Dow Jones Industrials NASDAQ Peer Group - Energy Peer Group - Broadband 63.2% (7.0%) (5.8%) (31.1%) 70.5% (66.5%) E0004392350 1~ * &09 EXH005-02524 ============= Page 8 of 8 ============= 2000 Enron Strategic Goals Overall Goal: Improve return on book equity to at least 13.5%. Status: Not Complete • Return on book equity is currently forecast to be 11.5% for 2000. • Impacted by delay of asset sales until 1st quarter 2001. • The return on equity for 2000 would have been 13.7% if the delayed sales had occurred and $5 billion of proceeds from the sales of assets were used to reduce equity. y~o E0004392351 EXH005-02525