Slide 1: FY 2020 results
FY 2020 results March 24th, 2021
Slide 2: E.ON is strong and resilient
E.ON is strong and resilient Strong operations Resilience of business model Solid balance sheet • 2020 adj. EBIT at top end • Business perfectly shielded • Good progress on organic of guidance range against economic impact deleveraging from Covid and weather • Acceleration of • Dividend proposal for
Slide 3: We successfully manage regulatory reviews
We successfully manage regulatory reviews Regulatory updates in CEE & Turkey from 20211 onwards new WACC: Adjusted RAB CZ -1.4pp ~6.5% (nominal) Increased eligible Capex and Opex new WACC: HU -1.3pp ~3.4% (real) Introduction of regulatory account in Earnings Poland successfully new WACC: retained TR
Slide 4: UK transformation ahead of plan
UK transformation ahead of plan March 2020 2021 2022 Migration of npower B2C + SME ✓ Wind down npower operations Migration of E.ON UK B2C + SME Ramp up of E.ON Next Key achievements Priorities for 2021 • Npower wind down ahead of plan • Migrate remaining <10% npower customers • >2 million customer a
Slide 5: Synergy delivery fully on track
Synergy delivery fully on track Net synergy targets1 Synergy delivery by division €m ~780 ~740 ~310 29% 52% 130✓ 40✓ 19% 2019 2020 2021 2022 2023 2024 Customer Solutions ✓ Transaction completely digested Energy Networks ✓ Central voluntary leave program successfully concluded Central Functions, IT a
Slide 6: One decade of successful reinvention
One decade of successful reinvention 2020 2018 - Resilience 2019 against 2016- Covid-19 2017 innogy take-over 2014 - 2011 - 2016 2010 2011 Transfer of nuclear 2013 storage liabilities Uniper spin-off – Nuclear exit – fossil fuel Johannes Teyssen Scale up of declining generation exit ap
Slide 7: Priorities 2021 and beyond
Priorities 2021 and beyond We commit to future dividend growth Dividend growth Customer centric energy infrastructure We pave the way to net zero We digitalize the energy transition Sustainability Performance We operate the platform for future growth 7
Slide 8: Key focus areas
Key focus areas Growth Sustainability Digitalization • Grow power RAB by 4-5% p.a. • Make ESG an anchoring • Apply technologies to until 2023 and beyond theme in everything we do radically change the way we • Grow Energy Infrastructure • Define clear path to net zero operate Solutions EBIT by 15% by
Slide 9: We commit to annually grow the dividend, also beyond 2023
We commit to annually grow the dividend, also beyond 2023 Growth Balance sheet • Capture growth opportunities in our • A strong BBB/Baa rating target business • Leverage target of 4.8x-5.2x • CAGR 2021-2023: EBIT 8-10% EPS 12-14% We are commited to… Dividend • Annual growth of up to 5% until 2023 0.
Slide 10: Financial update
@2-on Financial update
Slide 11: Successful target delivery based on resilient business
Successful target delivery based on resilient business EBIT1 Highlights € bn initial ~4.0 ✓ Strong operational performance in FY 2020 3.9-4.1 ✓ Zero economic Covid and weather impact due Expected ~0.2 to recoverable earnings effect in networks Covid impact ~€300m 3.8 ✓ 2020 EBIT at top end of guidan
Slide 12: FY 2020 EBIT at upper end of guidance
FY 2020 EBIT at upper end of guidance EBIT1 FY 2020 vs. FY 2019 pro forma Key drivers €m FY 2019 4,065 –• Covid-related lower volumes pro forma >-€200m Energy –• Germany: weather-related lower volumes Energy recoverable volume -246 effects from Covid Networks –• Sweden: lower WACC in new regulatory
Slide 13: Adjusted Net Income in line with EBIT development
Adjusted Net Income in line with EBIT development FY 2020 €m Group EBIT1 3,776 Economic interest result -1,078 Interest expense down by >200m2 Profit 2,698 before Taxes1 Income taxes -653 Tax rate at ~24% Minorities -407 0.63 EPS (€ per share) Adjusted 1,638 Net Income1 1. Adjusted for non-operating
Slide 14: Economic Net Debt improved due to strong Operating Cash Flow and divestments
Economic Net Debt (END) improved due to strong Operating Cash Flow and divestments € bn -8.7 -8.8 -8.1 Asset Retirement Obligations (ARO) Driven by strong -8.6 Pension provisions asset performance Net financial position and additional -24.0 contributions +0.1 -0.5 +0.5 -0.4 -24.6 -40.7 -0.3 +1.6 -42
Slide 15: Attractive Group earnings growth driven by core business
Attractive Group earnings growth driven by core business EBIT1 Mid-term outlook Core EBIT1 € bn CAGR 3.8–4.0 3.8 0.4 3.3 11-13% Core CAGR 2020 2021 2022 2023 2021-2023 Guidance: Core Non-Core2 1. Adjusted for non-operating effects 2. In 2023 non-core consists of Enerjisa Üretim only – no production
Slide 16: Earnings growth stemming from both Energy Networks & Customer Solutions
Earnings growth stemming from both Energy Networks & Customer Solutions Energy Networks EBIT1 Mid-term outlook1 Customer Solutions EBIT1 Mid-term outlook1 € bn € bn 0.8-1.0 3.3 2.9-3.1 0.7 0.5 0.4 0.1 0.1 2.2 0.4 2020 2021 2021-2023 -0.1 2021 2021-2023 2020 Guidance: Germany Sweden CEE & Turkey Guid
Slide 17: Strong double digit EPS growth
Strong double digit EPS growth Adjusted Net Income1 Earnings per share1 Mid-term outlook1 € bn € CAGR 1.7-1.9 1.6 0.63 0.65-0.73 Payout 12-14% ratio 76% 2020 2021 2020 2021 2021-2023 Refinancing benefits until 2023 of ~€150m2 1. Adjusted for non-operating effects 2. Amount of refinancing benefits de
Slide 18: 80-85% of investments aligned with EU taxonomy
80-85% of investments aligned with EU taxonomy Investments 2021 Investments 2021-2023 € bn € bn ~80% 80-85% EU taxonomy EU taxonomy ~4.91 aligned2 ~141 aligned2 Energy Networks Customer Solutions Other3 1. Cash-effective investments including Corporate Functions & Other and Non-Core 2. Based on EU t
Slide 19: Clear set of deleveraging measures
Clear set of deleveraging measures Economic Net Debt € bn FY 2020 “Beat the -8.7 • Further outperform the provisions by ~€0.5bn until 2022 provisions” “Focus on the • Asset performance to outperform the liability -8.1 long end” • Interest rate sensitivity of GER pensions1: +50bps → - ~€1.5bn • Worki
Slide 20: Accelerated progress towards debt factor target of 4.8x – 5.2x
Accelerated progress towards debt factor target of 4.8x – 5.2x Debt factor1 Guidance range for 5.9x debt factor of 4.8x-5.2x in line with rating target Strong 5.2x BBB/Baa rating target 4.8x 2020 2021 2022 2023 1. Economic Net Debt/EBITDA, EBITDA adjusted for non-operating effects. Based on interest
Slide 21: Strong mid-term delivery plan updated until 2023
Strong mid-term delivery plan updated until 2023 Dividend per share (DPS) growth up to 5% p.a. Group EBIT1 growth Group EPS growth 1 8-10% CAGR 12-14% CAGR Average cash conversion Capital structure with strong rate2of 100% BBB/Baa rating 1. Adjusted for non-operating effects; 2021-2023. 2. Excluding
Slide 22: Financial calendar & important links
Financial calendar & important links Financial calendar May 11, 2021 Quarterly Statement: January – March 2021 May 19, 2021 2021 Virtual Annual Shareholder Meeting August 11, 2021 Half-Year Financial Report: January – June 2021 November 10, 2021 Quarterly Statement: January – September 2021 March 16
Slide 23: E.ON's Investor Relations Team
E.ON‘s Investor Relations Team Analysts & Institutional Investors Verena Nicolaus-Kronenberg Daniel Schaller Head of Investor Relations Manager Investor Relations verena.nicolaus-kronenberg@eon.com daniel.schaller@eon.com +49 152 09331400 +49 171 6915869 Event & Roadshow Management Martina Burger Bj