E.on Se · XETR:EOAN
E.on — Debt Investor Presentation (October 2024)
38 slides from E.on's debt investor presentation, October 2024
Slide 1: Investor Update – Japan
Investor Update – Japan October 2024
Slide 2: 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 3: E.ON Representatives
E.ON Representatives Important links Henryk Wuppermann To be directed to our products please follow the links: Vice President Corporate & Structured Finance • Presentations Henryk.Wuppermann@eon.com • Facts & Figures M +49 151 16310242 • ESG Facts & Figures • Annual Reports • Interim Reports • Green
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 and are the backbone of the supply challeng
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: 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 7: We translate our strategy into an attractive financial framework
We translate our strategy into an attractive financial framework 1 Strong execution 2 Accelerating investment 3 Strong balance sheet 4 Sustainable growth momentum Over delivery on 2023 Significant capex step-up in Capex program financed via Visible value creation path earnings targets in a 2023 sets
Slide 8: Accelerated investment program backed by strict 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 9: Value accretive growth path in all our businesses
Value accretive growth path in all our businesses Energy Networks Energy Infrastructure Solutions Energy Retail EBITDA1 (€bn) EBITDA1 (€bn) EBITDA1 (€bn) +7% CAGR +13% CAGR +5% CAGR Underlying EBITDA 2023-2028 Underlying EBITDA 2023-2028 Underlying EBITDA 2023-2028 ~8.3 6.7-6.9 2.3 6.6 ~2.0 One offs
Slide 10: Regulated business provides predictable earnings growth path
Regulated business nature provides a predictable and profitable earnings growth path with low country risk Energy Networks Energy Networks value drivers Energy Networks investments in EBITDA1 in €bn AAA rated countries +7% + Immediate guaranteed return on Underlying EBITDA CAGR investments 2023-2028
Slide 11: Our distribution networks are vital to a successful green energy transition
Our distribution networks are vital to a successful ~75% green energy transition EBITDA share4 Total RAB1,2 €42bn Empowerment of the energy transition Power: €36bn ~€3.8bn Gas: €6bn 25.6 6.4 FY2023 RAB-effective investment, annual average 2024-2028 Germany Sweden ~20% of capex for • Integration of e
Slide 12: Finance Strategy
Finance Strategy _; - a a” “ “ 8 re <a @-or!
Slide 13: Strong BBB/Baa rating, €5-10bn extra balance sheet capacity
Investment program delivered with comfortable extra balance sheet capacity in 2028 Strong BBB/Baa rating High earnings quality and growth Debt factor2 target • Sustainable average CCR1 of ~100% from 2024 to 2028 of ≤ 5.0x • Accelerated green energy transition drives EBITDA growth Additional flexibil
Slide 14: Significant power grid investments in Europe
Significant power grid investments in Europe Average 2024-2026 capex-to-EBITDA ratios for selected Western European power TSOs and DSOs • E.ON is the playmaker of the energy transition in Germany and Western Europe • €42bn of investments planned over the next five years • €34bn into energy networks
Slide 15: Rating upgrade by S&P and rating confirmations by Moody's and Fitch
Rating upgrade by S&P and rating confirmations by Moody's and Fitch S&P WN Upgrade BBB+ / Baa1 Fitch1 S&P Long-term ratings BBB / Baa2 Moody‘s RfD BBB- / Baa3 2017 2018 2019 2020 2021 2022 2023 2024 • Issuer rating: BBB+ (stable outlook) • Issuer rating: Baa2 (stable outlook) • Issuer rating: BBB+ (
Slide 16: Sound funding strategy enabling sustainable green growth path
Sound funding strategy enabling sustainable green growth path Volumes Funding in 2024 YTD €3.5-5bn p.a. • Bonds totaling €4.55bn issued in January/March/August 2024 • Thereof €3.25bn green bonds Tenors • Fully funded for 2024 and a share of the March & August bond proceeds already 5-30 years earmark
Slide 17: Business Overview by Segments
Business Overview by Segments
Slide 18: Energy Networks
Energy Networks
Slide 19: Our distribution networks are vital to a successful green energy transition
Our distribution networks are vital to a successful ~75% green energy transition EBITDA share4 Total RAB1,2 €42bn Empowerment of the energy transition Power: €36bn ~€3.8bn Gas: €6bn 25.6 6.4 FY2023 RAB-effective investment, annual average 2024-2028 Germany Sweden ~20% of capex for • Integration of e
Slide 20: Investment program is boosting our RAB growth
Investment program is boosting our RAB growth to industry leading levels across core markets E.ON power RAB development1 Power RAB development key countries1 €bn €bn ~10% CAGR ~10% CAGR 55 ~34 Germany2 ~19 ~21 2022-2028 2022-2028 2022 2023 2028 36 31 ~8% 51 ~8 CAGR Sweden ~5 ~6 2022-2028 33 29 2022
Slide 21: Regulated business provides predictable earnings growth path
Regulated business nature provides a predictable and profitable earnings growth path with low country risk Energy Networks Energy Networks value drivers Energy Networks investments in EBITDA1 in €bn AAA rated countries +7% + Immediate guaranteed return on Underlying EBITDA CAGR investments 2023-2028
Slide 22: Energy Infrastructure Solutions
Energy Infrastructure Solutions
Slide 23: Best-in-class infrastructure portfolio capitalizing on decarbonization needs
Best-in-class infrastructure portfolio capitalizing upon the ~10% decarbonization needs of cities and industries EBITDA share1 Core Business Key drivers of the market Robust growth trajectory District Heating & Cooling: EBITDA Heating and cooling networks in urban areas. We design, build, own, opera
Slide 24: Delivering attractive and long-term secured returns in a diversified market
Delivering attractive and long-term secured returns in a diversified market set-up Portfolio of infrastructure assets Key drivers of the market • Typical contract duration of 10-20 years from contract ~6,000 conclusion infrastructure assets • Long-term contracts that provide inflation protection and
Slide 25: Energy Retail
Energy Retail
Slide 26: Diversified customer base managed for efficiency and new solutions
Diversified customer base managed for efficiency and new ~15% solutions convergence EBITDA share3 Diversified customer base of ~47m Managing for efficiency Converging customers into new solutions Customer accounts1 Digitalization Future Energy Home million Target to fully digitize and automate Servi
Slide 27: Offering a steady earnings path combined with attractive cash returns
Offering a steady earnings path combined with attractive cash returns EBITDA1 Energy Retail €bn Grow revenues with new solutions and EBITDA B2C 2.3 2.0 margin3 within 3-5% target range 0.72 +~€0.4bn 2023-2028 Total cash contribution4 of €5bn 2024-28 2023 2028 Underlying One-offs 1. Adjusted for non-
Slide 28: Financials
Financials
Slide 29: Guidance overview
Guidance overview €bn FY 20231 FY 2024 FY 2028 EBITDA2 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 Income2 3.068 2.8-3.0 ~3.3 EPS2 € 1.18 €1.07-1.15
Slide 30: Over delivery across the board in 2023
Over delivery across the board in 2023 Energy Networks Customer Solutions Group Adj. EBITDA €6.6bn Adj. EBITDA €2.8bn • Adjusted EBITDA • Operational execution and higher • Stabilization of the energy market €9.4bn investments into Regulated Asset Base environment and margin normalization • Temporar
Slide 31: Solid H1 results and full guidance confirmation
Solid H1 results and full guidance Key financials confirmation €bn 5.7 EPS1 4.9 € 0.88 € 0.67 • H1 EBITDA group results in line with expectations 2.3 1.8 • As anticipated, year-over-year earnings decrease driven by non- recurrence of timing and one-off effects; capex-backed growth and operational ex
Slide 32: Superior earnings growth profile with high-single-digit CAGR
Superior earnings growth profile with high-single-digit CAGR EBITDA1 Adjusted Net Income1 EPS1,2 €bn €bn 2023 € 1.18 2024 € 1.07-1.15 +7% CAGR +6% CAGR 2028 ~€ 1.25 Underlying EBITDA 2023-2028 Underlying ANI 2023-2028 >11 ~3.3 3.1 9.4 2.8-3.0 8.8-9.0 One offs/ Timing One offs/ Timing >11 3.4 Underly
Slide 33: Value accretive growth path in all our businesses
Value accretive growth path in all our businesses Energy Networks Energy Infrastructure Solutions Energy Retail EBITDA1 (€bn) EBITDA1 (€bn) EBITDA1 (€bn) +7% CAGR +13% CAGR +5% CAGR Underlying EBITDA 2023-2028 Underlying EBITDA 2023-2028 Underlying EBITDA 2023-2028 ~8.3 6.7-6.9 2.3 6.6 ~2.0 One offs
Slide 34: E.ON Bond Maturity Profile
E.ON Bond Maturity Profile EURbn 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 '37 '38 '39 '40 '41 '42 '43 '44 EUR Green EUR Vanilla GBP Bonds USD Bonds EUR Private Placements Other currencies (NOK, CHF, JPY) As of 30.09.2024 34
Slide 35: Green Bond Framework
Green Bond Framework
Slide 36: Green Bond Framework overview
Green Bond Framework overview: Framework structure in line with draft EU Green Bond Standard1 + Process for selection of Management of Green assets and capex Reporting External Verification green assets and capex use-of-proceeds • Electricity Networks (DSO) • All projects directly • E.ON strives to
Slide 37: Green Bond categories
Green Bond categories Electricity Networks (DSO) Renewable Energy Energy Efficiency Clean Transportation All distribution infrastructure and Renewable energy production and Integrated on-site business and city EV charging stations and supporting equipment in the inter-connected storage including3 en
Slide 38: Thank you
thank you C-on