Slide 1: H1 2020 Results
H1 2020 Results August 12th, 2020
Slide 2: High visibility despite Covid-19, mid-term targets confirmed
High visibility despite Covid-19, mid-term targets E.ON H1 2020 results confirmed ✓ 2020 EBIT guidance updated to €3.6 – 3.8bn reflecting largely recoverable expected Covid-19 effects until year end1 ✓ Strong operational performance in H1 2020 Dividend despite adverse weather conditions growth Custo
Slide 3: European recovery program and Green Deal will boost our growth potential
European recovery program and Green Deal will boost E.ON H1 2020 results our growth potential Maximum grants for each member Additional investment Hydrogen as strategic long-term state under EU Recovery and opportunities to foster growth in growth pillar Resilience Facility energy infrastructure Ita
Slide 4: Further milestones of innogy integration delivered
Further milestones of innogy integration delivered E.ON H1 2020 results No Covid-19 impact on net synergy1 targets Delivering on transaction and integration €m ~740 ~780 ✓ Squeeze-out completed ~310 ✓ Closing 2 completed ~125 40 ✓ ✓ All remedies successfully executed or signed ✓ 2019 2020 2021 2022
Slide 5: Digitalization at E.ON as core value driver
Digitalization at E.ON as core value driver E.ON H1 2020 results Energy Networks Customer Solutions Cooperation with SAP Germany: Substantial ramp up of contracts to digital platform All German • E.ON and SAP plan new cloud based million contracts contracts migrated1 technology platform ~4 • New ind
Slide 6: Guidance 2020 update for Covid-19 impact in line with Q1 communication
Guidance 2020 update for Covid-19 impact in line with E.ON H1 2020 results Q1 communication, now providing visibility until year end EBIT1,2 Key takeaways: €m 4,100 4,100 – 3,900 – 3,900 Volumes, recoverable • Covid-19 impact materialized as indicated 3,800 100 “lower end” – ~150 3,600 •• Effects no
Slide 7: No further significant Covid-19 impact expected until year end
No further significant Covid-19 impact expected E.ON H1 2020 results until year end Energy Networks: Power demand down since Customer Solutions: Key metrics for payment Covid-19 breakout behavior as of 31st July 110% Germany relative to 20191 Government Change of Day of 100% intervention payment beh
Slide 8: Strong EBIT development despite Covid-19 impact and mild weather
Strong EBIT development despite Covid-19 impact and E.ON H1 2020 results mild weather EBIT1 H1 2020 vs. H1 2019 pro forma Key drivers €m H1 2019 –• Covid-19-related lower volumes 2,323 pro forma Energy –• Germany: weather-related lower volumes ~-100 Networks Energy -251 Covid-19 impact –• Sweden: lo
Slide 9: Adjusted Net Income in line with EBIT development
Adjusted Net Income in line with EBIT development E.ON H1 2020 results H1 2020 €m Group EBIT1 2,162 Economic -559 interest result Profit 1,603 before Taxes1 Income taxes -401 Tax rate at ~25% Minorities -269 0.36 EPS (€ per share) Adjusted 933 Net Income1 1. Adjusted for non operating effects 9
Slide 10: Temporary Economic Net Debt increase largely due to squeeze-out and timing effects
Temporary Economic Net Debt (END) increase largely due E.ON H1 2020 results to squeeze-out and timing effects € bn -8.9 -8.8 -7.2 -8.0 Asset Retirement Obligations (ARO) Pension provisions Net financial position -23.4 -26.2 -1.7 +1.1 -1.5 -38.9 +1.2 -0.8 -39.4 +0.5 -1.6 -0.9 -43.1 END Transaction EN
Slide 11: Rating target re-confirmed, positive END effects above initial expectations
Rating target re-confirmed, positive END effects above E.ON H1 2020 results initial expectations Leverage factor1 Selected END effects 2020-20223 • 95% Cash conversion rate4 Strong BBB/Baa rating target ↑• Working Capital optimization program & 5 ARO reduction ~+€1.5bn (before: ~+€1bn) 5.6x (ARO red
Slide 12: Updated Group outlook 2020
Updated Group outlook 2020 E.ON H1 2020 results Group Guidance EBITDA1: €6.8-7.0bn EBIT1: €3.6-3.8bn ANI1: €1.5-1.7bn Capex2: ~€4.2bn (€7.1-7.3 bn) (€3.9-4.1bn) (€1.7-1.9bn) (~€4.5bn) Segment Guidance1 Energy Networks Customer Solutions Non-Core EBITDA: €5.0-5.2bn (€5.2-5.4bn) EBITDA: €1.0-1.2bn ✓ E
Slide 13: E.ON's 2020-2022 delivery plan confirmed
E.ON’s 2020-2022 delivery plan confirmed E.ON H1 2020 results Dividend per share (DPS) growth up to 5% p.a. EBIT1 growth Group EPS1 growth Group 11-13% (before: 7-9%) CAGR 17-22% (before: 10-15%) CAGR cash conversion Average strong Capital structure with rate2of 95% BBB/Baa rating 1. Adjusted for no
Slide 14: Financial Appendix
H1 2020 Results Financial Appendix
Slide 15: Guidance overview
Guidance overview E.ON H1 2020 results Change in guidance vs. Q1 € bn 2019 pro forma3 20204 2020-20224 EBITDA1 6.904 6.8-7.0 5-6% CAGR Energy Networks 5.364 5.0-5.2 Customer Solutions 1.126 1.0-1.2 Non-Core 0.617 0.8-1.0 Corporate Functions & Other -0.203 ~-0.3 EBIT1 4.065 3.6-3.8 11-13% CAGR Energy
Slide 16: Segment outlook 2020 remaining year
Segment outlook 2020 remaining year E.ON H1 2020 results EBIT1 key drivers H2 2020 Energy Networks Customer Solutions Non-Core Germany & CEE: All regions: PreussenElektra: – • Covid-19 related lower volumes –– • Covid-19 impact •+ Higher hedged prices Germany: •– Higher depreciation from purchase of
Slide 17: Financial highlights
Financial highlights E.ON H1 2020 results H1 2019 €m H1 2020 % YoY pro forma Sales - 30,503 - EBITDA1 3,650 3,656 +0 EBIT1 2,323 2,162 -7 Adjusted Net Income 1 1,052 933 -11 OCFbIT 1,057 1,521 +44 Investments 1,582 1,422 -10 Economic Net Debt² -38,903 -43,056 -11 1. Adjusted for non operating effect
Slide 18: Cash conversion in H1 seasonally low
Cash conversion in H1 seasonally low E.ON H1 2020 results H1 2020 € bn 44% CCR1 0.3 3.7 1.5 1.3 0.2 -2.4 -0.4 -1.4 -0.1 Group Cash Change in WC OCFbIT Interest Tax payments OCF Capex FCF EBITDA2 adjustments3 payments 1. Cash Conversion Rate (CCR): (OCF bIT+ provision utilization nuclear) ÷ EBITDA 2.
Slide 19: Divisions: Energy Networks
Divisions: Energy Networks E.ON H1 2020 results EBIT1 Drivers €m –• Covid-19-related lower volumes CEE & Turkey 1,903 316 –13% 1,652 Germany –• Weather-related lower volumes 262 321 Sweden 186 Sweden –• Lower WACC in new regulatory period Germany 1,325 –• Higher transmission charges 1,145 –• Covid-1
Slide 20: Divisions: Customer Solutions
Divisions: Customer Solutions E.ON H1 2020 results EBIT1 Drivers €m –• Weather-related impact on volumes 443 +3% 457 All –• Covid-19: sell-back of volumes (B2B) & bad debt 280 +• Restructuring benefits Germany 321 UK +• Positive customer development under E.ON Benelux 57 brand Other 74 43 50 77 UK H
Slide 21: Customer numbers B2B & B2C
Customer numbers B2B & B2C E.ON H1 2020 results Stable customer base (m)1 Thereof: electricity customers (m)1 Customer accounts -0.2% +0.0% 41.2 41.1 52.2 52.2 11.6 11.6 6.6 6.5 2.6 2.5 13.9 13.8 10.5 10.5 9.8 9.9 10.9 10.7 FY 2019 H1 2020 4.6 4.6 Thereof: gas customers (m)1 11.0 +0.9% 11.1 13.0 13.
Slide 22: Non-Core business
Non-Core business E.ON H1 2020 results EBIT1 Drivers €m +• Higher achieved power prices -2% +• Higher production volumes 245 241 Preussen Elektra –• Higher depreciation from purchase of Preussen production rights 182 Elektra 222 –• Transfer of minority stakes2 to RWE Generation Turkey Turkey 63 19 G
Slide 23: Adjusted Net Income
Adjusted Net Income E.ON H1 2020 results H1 2019 €m H1 2020 % YoY pro forma EBITDA1 3,650 3,656 +0 Depreciation/amortization -1,327 -1,494 -13 1 EBIT 2,323 2,162 -7 Economic interest expense (net) -542 -559 -3 1 EBT 1,781 1,603 -10 1 Income Taxes on EBT -456 -401 +12 1 % of EBT -26% -25% - Non-contr
Slide 24: Reconciliation of EBIT to IFRS Net Income
Reconciliation of EBIT to E.ON H1 2020 results IFRS Net Income €m H1 2019 H1 2020 % YoY 1 EBITDA 2,710 3,656 +35 Depreciation/Amortization/Impairments -993 -1,494 -50 1 EBIT 1,717 2,162 +26 Reclassified businesses of Renewables -266 0 +100 Interest result -435 -332 +24 Net book gains 19 159 +737 Res
Slide 25: Cash effective investments
Cash effective investments1 E.ON H1 2020 results H1 2019 €m H1 2020 % YoY pro forma Energy Networks 1,090 1,298 +19 Customer Solutions 417 333 -20 Corporate Functions & Other 72 -365 -610 Consolidation 0 -2 - Non-Core 4 158 - Investments 1,582 1,422 -10 1. Pro forma figures H1 2019, not audited 25
Slide 26: Economic Net Debt
Economic Net Debt1 E.ON H1 2020 results €m 31 Dec 2019 30 Jun 2020 Liquid funds 3,602 3,342 Non-current securities 2,353 2,079 Financial liabilities -28,955 -31,833 Adjustment FX hedging² 167 165 Net Financial Position -22,833 -26,247 Provisions for pensions -7,201 -7,972 Asset retirement obligation
Slide 27: Economic interest expense (net)
Economic interest expense (net)2 E.ON H1 2020 results H1 2019 Difference €m H1 2020 pro forma (in € m) Interest from financial assets/liabilities -466 -526 -60 Interest cost from provisions for pensions and similar provisions -62 -47 +15 Accretion of provisions for retirement obligations and similar
Slide 28: Bond maturities
Bond maturities E.ON H1 2020 results Bond maturities as of end H1 20201,2 17.2 € bn Volume % Coupon 1.8 1.5 0.4% 1.3 1.2 5.7% 0.0% 1.1 5.9% 5.6% 0.9 0.8 0.6 0.6 0.0% 3.9% 0.5 6.5% 0.4% 3.2% 0.8% 0.3 0.0% 3.0% 0.0% 3.2% 6.5% 5.5% 0.9% 5.5% Q4 Q2 Q3 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 >2024 20202 2021 2021 2022 2
Slide 29: Financial calendar & important links
Financial calendar & important links E.ON H1 2020 results Financial calendar November 11, 2020 Quarterly Statement: January – September 2020 March 24, 2021 Annual Report 2020 May 11, 2021 Quarterly Statement: January – March 2021 May 19, 2021 2021 Annual Shareholder Meeting August 11, 2021 Half-Year
Slide 30: E.ON Group Investor Relations Contacts
E.ON Group Investor Relations Contacts Analysts & Institutional Investors Private Shareholders Verena Nicolaus-Kronenberg Max Sadrina Sandra Schuck Head of Investor Relations Manager Investor Relations Manager Investor Relations verena.nicolaus-kronenberg@eon.com max.sadrina@eon.com sandra.schuck@eo
Slide 31: 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 agree