Binzer,
The regulation itself offers no compensation for delays (particularly 5 hour delays).
However the European Court of Justice ruled that a delay could be as onerous as a cancellation and the regulation could be interpreted by the courts as a delay is a cancellation.
e.g. Passenger A is booked on a flight which is cancelled. S/he is accommodated on the next days flight. Passenger is eligible for compensation under the regulation. Passenger B's flight is delayed for 24 hours. S/he is not eligible for compensation.
The ECJ ruling has been 'stayed' in the UK pending the British Court's request for reconsideration (it is actually much more complicated than that, but I won't boar you with details) - so the ECJ's ruling has no status there.