E.on Se · XETR:EOAN
E.on — Debt Investor Presentation (November 2024)
32 slides from E.on's debt investor presentation, November 2024
Slide 1: Non-deal Debt Roadshow London/Paris
it‘s on us Non-deal Debt Roadshow London/Paris November 2024
Slide 2: 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 3: 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 4: New political reality is fully backing secular growth momentum
New political reality is 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 t
Slide 5: 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 6: Business and financial strategy provide for 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 remuneration Strong 10% power High-single-digit Up to 5% BBB/Baa rating RAB growth p.a. EBITDA and EPS growth DPS growt
Slide 7: Energy Networks
Energy Networks
Slide 8: 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 9: Investment program is boosting our RAB growth to industry leading levels
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 10: Regulated business nature provides a predictable and profitable 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: Energy Infrastructure Solutions
Energy Infrastructure Solutions
Slide 12: Best-in-class infrastructure portfolio capitalizing upon 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 13: Delivering attractive and long-term secured returns in a diversified market set-up
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 14: Energy Retail
Energy Retait @-or!
Slide 15: Diversified customer base managed for efficiency and new solutions convergence
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 16: 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 17: Strategic Foundation
Strategic Foundation
Slide 18: E.ON is pioneering the digital transformation of the energy sector
E.ON is pioneering the digital transformation of the energy sector The new energy world is more decentralized, more E.ON will create an end-to-end digitized energy value chain based on four strategic volatile and more connected with fast growing pillars and strong ambitions complexities Digital Netw
Slide 19: 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 20: Financial Strategy
Financial Strategy @-or!
Slide 21: Attractive shareholder remuneration backed up by consistent dividend growth
Attractive shareholder remuneration backed up by consistent dividend growth Dividend per share € up to 5% DPS growth p.a. until 2028 We have delivered and will 0,43 0,46 0,47 0,49 0,51 0,53 continue to deliver 0,30 0,21 2016 2017 2018 2019 2020 2021 2022 2023 2028 21
Slide 22: Accelerated investment program backed by strict value creation requirements
Accelerated investment program backed by strict value creation requirements 2024-2028 Investments1 Segment 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% En
Slide 23: 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 24: 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 25: Strong BBB/Baa rating and €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 26: Appendix
Appendix
Slide 27: 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 28: 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 issuer ratings S&P Long-term BBB / Baa2 Moody‘s RfD BBB- / Baa3 2017 2018 2019 2020 2021 2022 2023 2024 • Bond rating: A- • Issuer rating: Baa2 (stable outlook) • Issuer rating: BBB+ (stable outlook
Slide 29: 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 30: Capital market debt well diversified and substantially green
Capital market debt well diversified and substantially green Capital Market Debt (in €bn) Maturity Profile1 (in €bn) 5,0 4,5 4,0 3,5 3,0 42% Capital market debt 2,5 ~€30.9bn thereof ~€13bn 2,0 green bonds (42%) 1,5 1,0 0,5 0,0 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 '37 '38 '39 '40 '41 '
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 agre
Slide 32: Thank you
thank you @-or