E.on Se · XETR:EOAN
E.on — ESG Presentation (November 2024)
54 slides from E.on's sustainability presentation, November 2024
Slide 1: ESG Facts & Figures
it‘s on us ESG Facts & Figures November 2024
Slide 2: Sustainability: Ambitious targets form the basis for all our businesses
Sustainability: Ambitious targets form the basis for all our businesses Ambitious ESG targets Full focus on Governance and Lead in transparency and commitments decarbonization sustainable finance reflected in good ratings Scope 1+2 Scope 3 • >15% of all renewable assets • New remuneration system Lis
Slide 3: E.ON at a glance
E.ON at a glance
Slide 4: We are the playmaker of the green energy transition in Europe
We are the playmaker of the green energy transition in Europe Energy Networks Energy Infrastructure Solutions Energy Retail We operate the largest energy distribution Industries and cities face major energy We are helping millions of private grid in Europe being the backbone of the supply challenges
Slide 5: Uniquely positioned across the utility value chain
We are uniquely positioned across the utility value chain focusing on electricity distribution and clean energy infrastructure Large-scale Power & Gas Transmission Power & Gas Distribution Supply & Services Generation Energy Networks (75%1) Energy Infrastructure Solutions (10%1) Energy Retail (15%1)
Slide 6: New political reality fully backing secular growth momentum
New political reality fully backing secular growth momentum Accelerated political targets Operational growth momentum becoming evident Share of renewables in EU energy consumption1 Network connection requests in German E.ON networks 43% +33% 420k +75% 32% 240k Old 2030 New 2030 2022 2023 target targ
Slide 7: Our investment case: Five reasons to invest in E.ON
Our investment case: Five reasons to invest in E.ON Energy Networks Energy Infrastructure Energy Retail Strategic Foundation Financial Strategy Solutions Long-term growth in a Growth acceleration Reliable returns and Digitalization and Focus on value- regulated environment from contracted attractive
Slide 8: Sound funding strategy enabling sustainable green growth path
Sound funding strategy enabling sustainable green growth path Volumes Tenors Green bonds Currencies Diversification €3.5-5bn p.a. 3-30 years >50% p.a. EUR preferred More instrument variety • Bond refinancing • Optimize maturity • Majority of funding • Predominantly euro- • Bond issuances • Capex – m
Slide 9: Business and financial strategy provide attractive shareholder returns
Our business and financial strategy provide for attractive shareholder returns supported by a strong balance sheet Financial capacity Operational growth Earnings growth Shareholder renumeration Strong 10% RAB High-single-digit Up to 5% BBB/Baa rating growth p.a. EBITDA and EPS growth DPS growth €5-1
Slide 10: environment
environment
Slide 11: Climate targets and progress on GHG emissions
Climate targets and progress on GHG emissions E.ON‘s progress GHG emissions development (million metric tons) Scope 11 Scope 21 Scope 32 -41%7 120.27 -48% -28% 82.58 2.80 1.63 65.23 3 4.82 1.71 3.88 3.38 3.46 35.63 2.92 2.88 30.12 0.05 0.05 2.01 0.05 1.90 3.14 3.19 42.51 0.05 1.87 0.05 0.25 0.27 30.
Slide 12: E.ON on its way to achieve ambitious climate targets
E.ON on its way to achieve ambitious climate targets E.ON’s carbon footprint E.ON’s targets4 million metric tons 2030 2040 2050 2.88 Scope 1 2.01 3.38 -50 to -75%5 -100% Scope 21 3.46 82.58 Scope 32 65.23 -50% -100% Avoided 108 6 emissions3 106 Science Based Targets Initiative (SBTi) has confirmed E
Slide 13: E.ON's commitments to UN Sustainable Development Goals (SDGs)
E.ON’s commitments to UN Sustainable Development Goals (SDGs) Impact of core business Stable, reliable and smart networks enable the energy transition, while innovative customer solutions help our customers to reduce their emissions. And with our climate targets E.ON is committed to become carbon-ne
Slide 14: Sustainability performance highly ranked by ESG rating agencies
E.ON’s sustainability performance continuously highly ranked by ESG rating agencies Current rankings Rankings development1 Rating: AA 2024 2023 2022 Rated on a AAA to CCC scale High relative performance MSCI AA/Leader AA AA ESG Risk Rating: 20.1 (medium risk) Medium risk Low risk Medium risk Rated o
Slide 15: Biodiversity: impactful environmental projects
Biodiversity: E.ON already contributes to a variety of impactful environmental projects with focus on biodiversity E.ON is an exclusive corporate partner of Ecological corridor management is a proof The LEAF Coalition has mobilized UNEP’s Decade on Ecosystem Restoration point for E.ON’s holistic app
Slide 16: Holistic nature & biodiversity strategy
E.ON will further increase positive impact on ecosystems and wildlife through a holistic nature & biodiversity strategy We build on a variety of local biodiversity measures implemented by our business units Protection of wildlife and landscapes, e. g. through irrigating riparian forests, creating gr
Slide 17: Circular Economy: Business value for E.ON
Circular Economy: Business value for E.ON From a recognized global need… … to a shared valued creation opportunity From linear to circular: new opportunities Imminence of climate change will further push global efforts to reduce emissions – energy transition will Linear value chains 1 accelerate glo
Slide 18: Several levers to drive Circular Economy
E.ON has several levers to drive Circular Economy, despite not being a manufacturer CE. N Cooperate with Create transparency suppliers to design and set supplier quotas on products for maximal E.ON less impacted than OEMs1, but has several the use of secondary reuse & recyclability materials levers
Slide 19: Sustainability KPI: Environmental ambitions
Sustainability KPI: Environmental ambitions KPI 2022 2023 Target CO2 footprint reduction [CO2eq emissions] Scope 1 % -261 -481 -50 to -75 (2030)3 and -100 (2040) Scope 22 % -301 -281 Scope 34 % -311 -411 -50 (2030)1 and -100 (2050) EU taxonomy aligned capex5 % 98 98 >95% Share of renewable generatio
Slide 20: social
social
Slide 21: Human rights: Clear part of our business and our supply chain
Human rights: Clear part of our business and our supply chain Governance/Supervision Human Rights Officer/ • Monitors human rights risk management system Chief Compliance Officer • Reports regularly to the Management Board • Permanent Member of the Sustainability Council Incident Incident Human Righ
Slide 22: Risk-based layers to mitigate human rights issues in supply chain
E.ON applies several risk-based layers to assess, identify and mitigate human rights issues in the supply chain Minimum standards must be met by complete supplier base Supplier Code of Conduct DECLARE: clear statement towards suppliers; E.ON has zero tolerance for breaching social, environmental and
Slide 23: 2021: Board decision on diversity measures
2021: Board decision on diversity measures Promotion of Co-Leadership and sharing of best practices that already Leadership Advertise all management positions Co-Leadership positions in as part time (at least 80%) with full- exist. Check for vacancies that are part-time suitable for Co-Leadership. t
Slide 24: Holistic approach for Diversity & Inclusion
E.ON takes a holistic approach for Diversity & Inclusion Activities 2023 Successes 2023 Activities 2024 • D&I1 trainings on Allyship and • Sponsorship of D&I networking by • Pilot ‚Diversity Compass‘ in Unconscious bias Board members cooperation with ‚Charta der • Continuation of CEO Listening Tour
Slide 25: Delivering digital toolset, skillset and mindset to employees
E.ON is delivering the digital toolset, skillset and mindset to empower all its employees Our vision 2025 What we have delivered for our employees A digital capability taxonomy to guide E.ON’s upskilling target picture and create “All our employees within E.ON have one E.ON wide standard based on di
Slide 26: Learning families and skill taxonomy
E.ON identified all employees into different ‘learning families’ with similar skill requirements while developing a skill taxonomy 6 learning families representing different requirements and upskilling needs Exemplary skill taxonomy1 incl. skill clusters and skills Digital tools & collaboration Top
Slide 27: Digital learning platform MyGenius
Learning offerings are accessible in one place for all employees: the new digital learning platform MyGenius Simple log-in & integration to HR: MyGenius connects with existing HR systems to create a seamless end-to-end user experience for employees One-stop-shop for learning: both internal and exter
Slide 28: Sustainability KPI: Social ambitions
Sustainability KPI: Social ambitions KPI 2022 2023 Target Diversity: Female executives % 23 24 ≥32 by 2031 Index SIF1: 0.04 SIF1: 0.03 ≤0.07 by 2030 Health & safety Index LTIF2: 2.1 LTIF2: 2.2 People development: h/a 18.2 22.0 Training hours3 Community contribution €m 18 22 Germany: min/a 24 21 Netw
Slide 29: governance
governance
Slide 30: E.ON's Board of Management
E.ON’s Board of Management Leonhard Birnbaum Nadia Jakobi Thomas König Mark Spieker Victoria Ossadnik Chief Executive Officer Chief Financial Officer Chief Operating Officer – Chief Operating Officer – Chief Operating Officer – Networks Commercial Digital • Communications & Political • Finance • Ene
Slide 31: Supervisory Board: Experienced, diverse and independent
E.ON Supervisory Board: Experienced, diverse and independent 16 Board Members1 Member of the E.ON Supervisory Board for 8 Shareholder Representatives 4 6 6 8 Employee Representatives <2 Years 2 – 5 Years >5 Years Age2 Nationality2 Independence3 Management Experience gained4 19% 4 38% 3 100% 62% 19%
Slide 32: Supervisory Board: Shareholder representatives
E.ON Supervisory Board: Shareholder representatives Ulrich Grillo Andreas Schmitz Deputy Chairman of the Supervisory Board Born 1960, German Born 1959, German Member since 2016 Member since 2019 Particular expertise in financial analysis and Excellent network in German industry, capital markets, fin
Slide 33: Supervisory Board: Employee representatives
E.ON Supervisory Board: Employee representatives Frank Werneke Stefan May Deputy Chairman of the Supervisory Board Born 1970, German Born 1967, German Member since 2019 Member since 2024 Technical expertise as well as extensive knowledge in co-determination Expert on politics and co-determination Ka
Slide 34: Competencies of shareholder representatives in skills profile
Competencies of shareholder representatives in context of skills profile Skills (and other characteristics) Clementi Fröhlich Grillo Groth Petit A. Schmitz R. Schmitz Wilkens Experience as a member of the Board Management ✓ ✓ ✓ ✓ ✓ ✓ ✓ or Supervisory Board at other listed companies Expertise in the
Slide 35: New compensation scheme for the Management Board
New compensation scheme for the Management Board came into effect on January 1, 2022 Target structure Maximum remuneration Base | Fixed amount, paid in twelve monthly rates 26-32% CEO: €10m OBM1: €5.5m E.ON Board 1 year period Compensation Plan Malus and clawback Target Earnings per share 80% up to
Slide 36: E.ON Sustainability Index reflects ambitious sustainability targets
E.ON Sustainability Index reflects ambitious sustainability targets Anchoring governance, social responsibility and preservation of natural resources through the E.ON Sustainability Index 25%1 E.ON Target attainment Targets Sustainability Index 200 200% 50 Carbon emission reduction Climate Carbon-ne
Slide 37: AGM format decided yearly case-by-case
New decision about our AGM format is made yearly on a case-by- case basis Factors taken into account Ability to grant 100% of Effort and costs to hold the Content of agenda shareholder rights meeting Energy and resource Process liability Health and security situation consumption Taking into account
Slide 38: Sustainability KPI: Governance ambitions
Sustainability KPI: Governance ambitions KPI 2022 2023 Target Share of female % 30 38 ≥30 Supervisory Board members1 Independent Supervisory % 100 100 100 Board members ESG included in Board of Management - Since 2022 included Since 2022 included included remuneration ESG Facts & Figures 1. Refers t
Slide 39: appendix
appendix
Slide 40: E.ON's carbon footprint by GHG Protocol scopes
CO2 emission: E.ON’s carbon footprint by Greenhouse Gas (GHG) Protocol scopes Definitions of scope E.ON’s carbon footprint by GHG Protocol scope Direct GHG emissions: Emissions from Scope 1 operations that are owned or controlled by the reporting company Indirect GHG emissions: Emissions from the ge
Slide 41: Nuclear exit: Additional information
Nuclear exit: Additional information Nuclear phase out Percentage of power generation sales (nuclear power plant) • E.ON closed its last nuclear power plant Isar 2 Nuclear power generation of total sales until decommissioning (%) on 15 April 2023 3.00 2.00 2.00 1.00 0.50 0.00 2019 2020 2021 2022 202
Slide 42: Use case #1 for circularity efforts
Use case #1 for circularity efforts to have positive impact, business case, and brand value From theoretical usecase… … to services around greening power transformers. Key benefits: Initiative Empower scaling of power transformer refurbishment Increase lifetime of transformers by 1 reusing, repairin
Slide 43: Use case #2 for circularity efforts
Use case #2 for circularity efforts to have positive impact, business case, and brand value From theoretical usecase… … to future-ready, scaleable energy system for sustainable cities Key benefits1: Reuse excess heating from (ind.) Initiative processes & buildings Heating & cooling in one scalable 1
Slide 44: Commitment to UN Sustainable Development Goals
E.ON is committed to make a contribution towards achieving the UN Sustainable Development Goals • The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future.
Slide 45: Reporting standards and frameworks
Reporting standards and frameworks Global Reporting Initiative (GRI) Task Force on Climate-related United Nations Global Compact Financial Disclosures (TCFD) (UNGC) We have based our sustainability reporting E.ON became an official TCFD supporter in E.ON has been committed to upholding on Global Rep
Slide 46: Accelerated investment program backed by value creation requirements
Accelerated investment program backed by strict value creation requirements 2024-2028 Investments1 Investment split Creating shareholder value €30bn RAB-effective: Energy GER 72% / SWE 9% / CZ 8% / Networks 150-200bps ROCE over WACC Other 11% spread4 €4bn network-adjacent3: €34bn GER 100% Energy 45%
Slide 47: Green Bond Framework overview
Green Bond Framework overview: Framework structure in line with draft EU Green Bond Standard1 Green assets and capex Process for selection of green assets and capex Management of use-of-proceeds Reporting + External verification • Electricity Networks • All projects directly • E.ON strives to • Annu
Slide 48: Green Bond categories
Green Bond categories Electricity Networks (DSO) Renewable Energy Energy Shareholder Clean Transportation All distribution infrastructure and Renewable energy production Integrated on-site business and EV charging stations and equipment in the interconnected and storage including3 city energy soluti
Slide 49: Benchmark bonds of E.ON Group
Energy Networks Energy Infrastructure Solutions Start mit einfarbiger Energy Networks Energy Infrastructure Solutions Energy Retail CF / Other Digital Financials Füllung Benchmark bonds of E.ON Group as of May 15, 20241 Issuer Volume in millions in Coupon Maturity Issuer Volume in millions in Coupon
Slide 50: Guidance overview
Guidance overview €bn Actual FY 2023 FY 2024 FY 2028 EBITDA1 9.370 8.8-9.0 >11 Energy Networks 6.640 6.7-6.9 ~8.3 Energy Infrastructure Solutions 0.525 0.55-0.65 ~0.95 Energy Retail 2.282 1.6-1.8 ~2.0 Corporate Functions & Other -0.077 ~-0.2 ~-0.1 Adj. Net Income1 3.068 2.8-3.0 ~3.3 EPS1 € 1.18 €1.0
Slide 51: Financial calendar and important links
Financial calendar and important links Financial calendar February 26, 2025 May 14, 2025 May 15, 2025 August 13, 2025 Full Year Financial Report Quarterly Statement Annual General Meeting Half Year Financial Report 2024 January – March 2025 January – June 2025 • Presentations • Facts & Figures 2023
Slide 52: E.ON contacts
E.ON contacts E.ON Investor Relations E.ON Sustainability Andreas Thielen Piipa Poutiainen Bernhard Gruenauer Manager Investor Relations Manager Investor Relations Senior Sustainability Manager andreas.thielen@eon.com piipa.poutiainen@eon.com bernhard.gruenauer@eon.com +49 151 67114918 +49 162 10938
Slide 53: Disclaimer
Disclaimer This presentation contains information relating to E.ON Group (‘E.ON’) that must not be relied upon for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. By accessing this document, you agre
Slide 54: thank you
thank you @-or