Slide 1: 2015 full year results
2015 full year results 9 March 2016
Slide 2: Solid delivery of full year 2015 outlook
Solid delivery of full year 2015 outlook EBITDA1 Highlights 2015 outlook delivered, EBITDA at €7.0- €6.0- upper end of outlook range €7.6bn 7.6bn 6.5bn Dividend2 of 0.50 €/share as promised 2015 2015 2016 No scrip dividend scheme for 2015 Outlook Actual Outlook Outlook for 2016 is on pre-spi
Slide 3: Spin-off update – Carve-out of Uniper delivered
Spin-off update – Carve-out of Uniper delivered Carve-out and HR work streams Since 1 January 2016…. Carve-out implementation progress >4,200 mile- stones Q2 Q3 Q4 To operationally separate Future E.ON and Uniper (so-called “day 1 readiness”) more than 4,200 project milestones E.ON and Uni
Slide 4: Spin off – Key milestones
Spin off – Key milestones 1 Jan 2016 E.ON and Uniper 26 Apr 2016 organizational separate Capital market day Apr/May 2016 Carve-out Equity story, incl. strategy, KPIs, Roadshows 8 Jun 2016 effective dividend policy, Filing of Uniper Employees etc. H2 2016 prospectus with AGM decision alloca
Slide 5: Adverse environment with significant impact
Adverse environment with significant impact Deteriorating commodity price/FX environment Strategic rationale to separate the two companies unchanged Fundamental trends in technology and customer behaviors rather expedited Uniper Future E.ON Measures to secure sustainable dividend Investments a
Slide 6: Operational achievements in the core businesses
Operational achievements in the core businesses Energy networks Renewables Customer Solutions In 2015 regulatory reviews Successfully Special unit E.ON in Sweden, Czech commissioned two large Connecting Energy for Republic and Turkey: offshore wind farms tailored energy solutions with combined cap
Slide 7: Key takeaways
Key takeaways Amid continuously deteriorating commodity environment and adverse FX developments, 2015 a year of some outstanding operational achievements in the core businesses and in preparing the spin-off of Uniper Remain deeply convinced of our strategy and spin-off of Uniper continues to be
Slide 8: 2015 full year results
2015 full year results Michael Sen, CFO March 9, 2016
Slide 9: Operating in a tough environment
Operating in a tough environment 120 120 UK EEX Nordpool Coal Oil 110 -39% -42% -37% -57% -61% 100 100 80 90 80 60 70 40 60 20 50 40 0 01.01.2014 01.01.2015 01.01.2016 01.01.2014 01.01.2015 01.01.2016 200 120 Gas CO2 180 RUB/EUR 10Y Gov -58% -12% 100 -55% -95% 160 140 80 120 100 60 80 40 60 40 20 20
Slide 10: Dividend confirmed & guidance achieved
Dividend confirmed & guidance achieved 2015 accomplishments €7.6 2015 dividend confirmed: €0.5/ share Guidance met €1.6 Economic net debt reduced: ~€5.7bn EBITDA €7.0-7.6bn UNI €1.4-1.8bn Cash conversion: 81% DF1 €5.7bn Disposals: ~€4.5bn 4.0x DF1 Additional cost savings: €0.1bn 3.7x FY14 Economic n
Slide 11: EBITDA: commodity & disposals dominate 2015
EBITDA: commodity & disposals dominate 2015 Full year 2015 (in €bn) FY 2014 8.4 Net cost savings 0.1 New capacities 0.3 Region Germany 0.4 -0.8 Power portfolio -0.7 E&P -0.2 Disposals -0.5 Other -0.2 FY 2015 7.6 10
Slide 12: UNI: D&A and taxes offset the EBITDA decline
UNI: D&A and taxes offset the EBITDA decline €m 2014 2015 % YoY EBITDA 1 8,376 7,557 -10 Depreciation/amortization recognized in EBIT 1 -3,681 -3,188 13 EBIT 1 4,695 4,369 -7 Economic interest expense (net) -1,613 -1,572 3 EBT 1 3,082 2,797 -9 Income taxes on EBT 1 -1,084 -776 - % of EBT 1 35% 28% -
Slide 13: Net Income driven by non-operating charges
Net Income driven by non-operating charges FY15 D Y-o-Y Abs. / Rel. FY14 Underlying Net Income 1.648 2 0% 1.646 Net book gains 450 -139 -31% 589 Restructuring -510 -14 3% -496 Impairments / n.a. -8.430 -2.973 -5.457 Reversal of impairments Others * -157 -716 n.a. 559 Net income attributable to -6.99
Slide 14: Cash conversion rises to 81%
Cash conversion rises to 81% Full year 2015 (in €bn) EBITDA 1 7.6 Non-cash effective EBITDA items +2.1 Cash-effective EBITDA 9.7 CCR3 Provision utilization -2.6 81% Working capital +0.1 movements Tax, interest & other -1.1 2 OCF after interest and tax 6.1 13 1. Adjusted for extraordinary effects 2.
Slide 15: Economic net debt reduced by €5.7bn
Economic net debt reduced by €5.7bn Full Year 2015 (in €bn) END END Provisions NFP 2014 OCF CAPEX B&S Dividend Divest Pensions Others 2015 NFP Provisions Pensions Pensions: -5.6 -4.2 ARO: ARO: -19.0 -18.9 Cash Balance: +1.4 -23.1 -24.6 +6.1 +1.4 -1.3 -27.7 -4.6 +4.2 +0.3 -4.2 -0.9 -8.8 -33.4 +5.7 14
Slide 16: 2016 segment outlook
2016 segment outlook €bn 2015A 2016E Comments Significantly below: negative power prices, shut- Generation 1.5 down of Grafenrheinfeld, disposals (Italy, Spain) Slightly below: lower hydro prices, disposals (Italy, Renewables 1.3 Spain), full-year contribution Humber & Amrumbank Significantly ab
Slide 17: 2016 Outlook: the challenges continue
2016 Outlook: the challenges continue €6.0-6.5bn €1.2-1.6bn EBITDA UNI Legal notice Assuming a positive vote on the spin-off of a majority stake in Uniper at our AGM on June 8, 2016 and assuming that the spin-off will become effective in 2016: 1. Our outlook for 2016 will have to be adjusted due to
Slide 18: The challenges and our priorities
The challenges Commodity volatility is Nuclear issues Rating pressure unprecedented remain unsolved increases Our priorities Focused Disciplined Striving 17
Slide 19: Backup
Backup 18
Slide 20: Financial highlights
Financial highlights €m 2014 2015 Sales 113.095 116.218 1 EBITDA 8.376 7.557 EBIT 1 4.695 4.369 Underlying net income 1 1.646 1.648 Operating cash flow 2 6.354 6.133 Investments 4.637 4.174 Economic net debt -33.394 -27.714 1. Adjusted for extraordinary effects 19 2. Operating cash flow from continu
Slide 21: EBITDA and EBIT by unit
EBITDA and EBIT by unit 1 1 €m EBITDA EBIT 2014 2015 % YoY 2014 2015 % YoY Generation 2,215 1,472 -34 1,201 745 -38 Renewables 1,500 1,346 -10 1,044 924 -11 Global Commodities 106 223 110 10 109 990 Exploration & Production 1,136 895 -21 498 389 -22 Germany 1,761 2,157 22 1,099 1,537 40 Other EU Cou
Slide 22: From EBITDA to Net Income
From EBITDA to Net Income 2014 2015 % YoY EBITDA 1 8,376 7,557 -10 Depreciation/Amortization/Impairments -3,681 -3,188 -13 EBIT 1 4,695 4,369 -7 Economic interest expense (net) -1,613 -1,572 -3 Net book gains 589 450 -24 Restructuring -496 -510 3 Mark-to-market valuation of derivatives 540 533 -1 Im
Slide 23: Generation
Generation €m EBITDA 1 EBIT 1 2014 2015 % YoY 2014 2015 % YoY Nuclear 1.411 1.002 -29 1.085 670 -38 Steam 614 521 -15 197 177 -10 CCGT 200 -32 -116 -68 -131 -55 Other/Consolidation -10 -19 90 -13 29 -323 Total 2.215 1.472 -34 1.201 745 -38 Main EBITDA effects (in €bn) Nuclear (-0.4) Driven by lowe
Slide 24: Renewables
Renewables €m EBITDA 1 EBIT 1 2014 2015 % YoY 2014 2015 % YoY Hydro 677 566 -16 551 509 -8 Wind/Solar/Other 823 780 -5 493 415 -16 Total 1.500 1.346 -10 1.044 924 -11 Main EBITDA effects (in €bn) Hydro (-0.1) Lower prices in all markets (-0.1) Disposal of Spanish & Italian hydro assets Wind/Sola
Slide 25: Global Commodities
Global Commodities 1 1 €m EBITDA EBIT 2014 2015 % YoY 2014 2015 % YoY Coal/Oil/Freight/LNG 29 29 0 29 29 0 Power and Gas -60 45 -175 -151 -63 -58 Infrastructure/Other 137 149 9 132 143 8 Total 106 223 110 10 109 990 Main EBITDA effects (in €bn) Power and Gas (0.1) Unwind of CO2 phasing effect in Q
Slide 26: Exploration & Production
Exploration & Production €m EBITDA 1 EBIT 1 2014 2015 % YoY 2014 2015 % YoY Total 1.136 895 -21 498 389 -22 Main EBITDA effects (in €bn) North Sea fields (-0.2) Lower margins due to falling oil and gas prices partly compensated by slightly higher volumes and FX effects (-0.2) Yushno Russkoje (-0.1
Slide 27: Germany
Germany €m EBITDA 1 EBIT 1 2014 2015 % YoY 2014 2015 % YoY Distribution 1.525 1.686 11 953 1.129 18 Non-regulated/Other 236 471 100 146 408 179 Total 1.761 2.157 22 1.099 1.537 40 Main EBITDA effects (in €bn) Distribution Networks (+0.2) Positive onetime effects related to the release of provision
Slide 28: Other EU Countries
Other EU Countries 1 1 €m EBITDA EBIT 2014 2015 % YoY 2014 2015 % YoY Distribution 1.002 1.031 3 641 669 4 Sales 551 507 -8 465 386 -17 Other/Consolidation 223 218 -2 60 64 7 Total 1.775 1.756 -1 1.166 1.119 -4 Main EBITDA effects (in €bn) Distribution Networks (+/-0) Mainly higher tariffs in gas
Slide 29: Non-EU Countries
Non-EU Countries €m EBITDA 1 EBIT 1 2014 2015 % YoY 2014 2015 % YoY Russia 517 361 -30 371 266 -28 (in Mio Ruble) 26.361 24.570 -7 18.936 18.085 -5 Other Non-EU countries -78 -39 -50 -78 -40 -49 Total 439 322 -27 293 226 -23 Main EBITDA effects (in €bn) Russia (-0.2) Mainly due to negative currenc
Slide 30: Cash effective investments by unit
Cash effective investments by unit €m 2014 2015 % YoY Generation 862 563 -35 Renewables 1,222 1,106 -9 Global Commodities 115 113 -2 Exploration & Production 64 97 52 Germany 745 881 18 Other EU Countries 883 1,035 17 Non-EU Countries 703 294 -58 Group Management / 43 85 98 Consolidation Investments
Slide 31: Economic net debt
Economic net debt €m 31 Dec 2014 31 Dec 2015 Liquid funds 6,067 8,190 Non-current securities 4,781 4,724 Financial liabilities -19,667 -17,742 Adjustment FX hedging 1 34 218 Net financial position -8,785 -4,610 Provisions for pensions -5,574 -4,210 Asset retirement obligations 2 -19,035 -18,894 Econ
Slide 32: Financial liabilities of the E.ON Group
Financial liabilities of the E.ON Group End of 2015 in € billion Maturity profile (as of end of 2015)2 31 Dec 2015 31 Dec 2014 Bonds 13.8 14.3 in EUR 6.0 7.1 in GBP 4.7 4.4 6,0 5,0 in USD 2.8 2.5 4,0 in CHF 0.0 0.0 3,0 in SEK 0.0 0.0 2,0 1,0 in JPY 0.2 0.2 0,0 other currencies 0.1 0.1 2016 2017 2018
Slide 33: Economic interest expense (net)
Economic interest expense (net) YTD YTD Difference €m 2014 2015 (in €m) Interest from financial assets/liabilities -818 -772 +46 Interest cost from provisions for pensions and similar provisions -92 -116 -24 Accretion of provisions for retirement obligation and other provisions -1.039 -904 +135 Capi
Slide 34: E&P - Oil & Gas production
E&P - Oil & Gas production m boe 2014 2015 % YoY Skarv 13,5 13,6 1 Njord/Hyme 2,8 4,5 58 Elgin-Franklin 0,9 1,7 88 Babbage 1,4 1,3 -13 Huntington 1,2 1,4 8 Rita 0,7 0,3 -66 Total North Sea 22,4 23,7 6 Yuzhno Russkoje 37,3 37,2 -0 Total 59,6 60,9 2 33
Slide 35: Outright hedging (Central Europe & Nordic)
Outright hedging (Central Europe & Nordic) €/MWh ~38 2016 ~33 ~33 2017 ~27 ~30 2018 ~25 0% 20% 40% 60% 80% 100% Central Europe Nordic 34
Slide 36: E.ON Investor Relations Contact
E.ON Investor Relations Contact Anke Groth T+49 (201) 184 28 01 Head of IR anke.groth@eon.com Alexander Karnick T+49 (201) 184 2838 alexander.karnick@eon.com Marc Koebernick T +49 (201) 184 28 14 marc.koebernick@eon.com Dr. Stephan Schönefuß T +49 (201) 184 28 22 stephan.schoenefuss@eon.com Oliver R
Slide 37: Reporting calendar & important links
Reporting calendar & important links Reporting calendar March 9, 2016 Annual Report 2015 May 11, 2016 Interim Report I: January – March 2016 June 8, 2016 2016 Annual Shareholders Meeting August 10, 2016 Interim Report II: January – June 2016 November 9, 2016 Interim Report III: January – December 20
Slide 38: Disclaimer
Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between