Slide 1: H1 2021 Results
H1 2021 Results August 11th, 2021
Slide 2: Positive momentum with guidance adjustment
Positive momentum with guidance adjustment E.ON H1 2021 results Highlights H1 key financials1 2021 FY guidance update €bn Strong performance in H1 2021 Group EBITDA1 €7.6-7.8bn Excellent operations including progress on (€7.2-7.4bn) synergies and normalized weather 3.2 Technical adjustment of FY 202
Slide 3: E.ON – the trusted expert for reliable energy infrastructure
E.ON – the trusted expert for reliable energy E.ON H1 2021 results infrastructure German flood disaster highlights the increased importance for resilient energy infrastructure • Our industry-leading operations are the groundwork for quick and non-bureaucratic aid for victims • The unprecedented supp
Slide 4: Progress on our key priorities
Progress on our key priorities E.ON H1 2021 results Sustainability Digitalization Growth • Ecological grid corridor • IT renewal on track: increasing • European ‘Fit for 55’: focus management: ~70,000 hectares focus on cloudification themes fully support E.ON’s along our high-voltage lines to growth
Slide 5: Energy Networks Germany: initial proposal for return on equity published
Energy Networks Germany: initial proposal for E.ON H1 2021 results return on equity published Allowed German pre-tax RoE1 for new assets First assessment • Proposed RoE is not sufficient to support investment needs for energy transition 6.91% • Proposal is not competitive in an international context
Slide 6: Customer Solutions: increased demand for sustainable offerings
Customer Solutions: increased demand for sustainable E.ON H1 2021 results offerings Energy Infrastructure Solutions (EIS) Future Energy Home (FEH) FY 2021 outlook H1 2021 vs. H1 2020 ~€500m capex +~30% revenue >€200m EBIT1 +€30m EBIT1 1. Adjusted for non-operating effects 6
Slide 7: Significant EBIT growth in all segments
Significant EBIT growth in all segments E.ON H1 2021 results EBIT1 Key drivers €m +• Covid-19 impact in 2020 H1 2020 2,185 Energy +/–• Germany: normalized weather/ Networks regulatory cycle Energy Networks +125 +• CEE & Turkey: Slovakia - inclusion of VSEH2 Customer Solutions +358 + • Covid-19 impac
Slide 8: Adjusted Net Income amplified by lower refinancing costs and tax
Adjusted Net Income amplified by lower refinancing costs E.ON H1 2021 results and tax H1 2021 €m vs. H1 2020: Group EBIT1 3,163 +45% Economic -496 interest result Profit 2,667 before Taxes1 Income taxes -614 Tax rate at ~23% Minorities -288 vs. H1 2020: Adjusted Net Income1 1,765 0.68 EPS (€ per sha
Slide 9: END unchanged despite high investments and dividend payment
END unchanged despite high investments and dividend E.ON H1 2021 results payment €bn -8.6 Asset Retirement Obligations (ARO) -8.6 Pension provisions Net financial position -6.4 -6.4 -25.7 -25.9 -0.8 0.0 +1.8 -1.5 +0.3 -40.8 -40.9 END OCF Net Investments Pensions2 Dividends Other END Q1 2021 Q2 2021
Slide 10: Upgraded Group guidance 2021 due to nuclear production rights agreement
Upgraded Group guidance 2021 due to nuclear production E.ON H1 2021 results rights agreement Group guidance EBITDA1: €7.6-7.8bn EBIT1: €4.4-4.6bn ANI1: €2.2-2.4bn (€7.2-7.4 bn) (€3.8-4.0bn) (€1.7-1.9bn) Segment guidance1 Energy Networks Customer Solutions Non-Core EBITDA: €5.0-5.2bn ✓ EBITDA: €1.4-1
Slide 11: Mid-term delivery plan confirmed
Mid-term delivery plan confirmed E.ON H1 2021 results Dividend per share (DPS) growth up to 5% p.a. Group EBIT1 growth Group EPS growth 1 8-10%2 CAGR 12-14%2 CAGR Average cash conversion Capital structure with strong rate3of 100% BBB/Baa rating 1. Adjusted for non-operating effects, 2021-2023. 2. Ba
Slide 12: H1 2021 Results – Financial Appendix
H1 2021 Results Financial Appendix
Slide 13: Guidance overview
Guidance overview E.ON H1 2021 results Change vs. May 2021 €bn FY 2020 2021 2021-2023 EBITDA1 6.905 7.6-7.8 2-3%2 CAGR Energy Networks 5.199 5.0-5.2 Customer Solutions 1.006 1.4-1.6 Non-Core 0.925 1.2-1.4 Corporate Functions & Other -0.225 ~-0.2 EBIT1 3.776 4.4-4.6 8-10%2 CAGR Core EBIT 3.363 11-13%
Slide 14: Segment outlook 2021 remaining year
Segment outlook 2021 remaining year E.ON H1 2021 results EBIT1 key drivers H2 2021 Energy Networks Customer Solutions Non-Core +• Covid-19 impact in 2020 +• Covid-19 impact in 2020 PreussenElektra: +• Lower depreciation from purchase Germany: Benelux: of production rights •– Regulatory cycle –• Disp
Slide 15: Financial highlights
Financial highlights E.ON H1 2021 results €m H1 2020 H1 2021 % YoY Sales 30,503 33,040 +8 1 EBITDA 3,679 4,768 +30 1 EBIT 2,185 3,163 +45 Adjusted Net Income 1 950 1,765 +86 OCFbIT 1,521 2,171 +43 Investments 1,422 1,908 +34 Economic Net Debt² -40,736 -40,866 0 1. Adjusted for non-operating effects
Slide 16: Cash Conversion Rate of 49% in H1 2021 in line with seasonality
Cash Conversion Rate1 of 49% in H1 2021 in line with E.ON H1 2021 results seasonality €bn 49% CCR1 4.8 -0.2 2.2 -2.4 1.2 -0.5 -0.5 -1.9 -0.7 Group Cash Change in WC OCFbIT Interest Tax payments OCF Capex FCF EBITDA2 adjustments3 payments 1. Cash Conversion Rate (CCR): (OCF bIT + provision utilizatio
Slide 17: Divisions: Energy Networks
Divisions: Energy Networks E.ON H1 2021 results EBIT1 Drivers €m +• Covid-19 impact in 2020 1,652 +8% 1,777 All +• Organic RAB growth CEE & Turkey 321 391 +• Normalized weather (vs. H1 2020) Sweden 186 192 Germany –• Regulatory cycle Germany 1,145 1,194 CEE & Turkey +• Slovakia: first time contribut
Slide 18: Divisions: Customer Solutions
Divisions: Customer Solutions E.ON H1 2021 results EBIT1 Drivers €m +• Covid-19 impact in 2020 +75% 838 All +• Normalized weather (vs. H1 2020) 355 Germany 480 UK +• Restructuring benefits Benelux 68 273 163 UK 57 66 252 +• Strong operational performance Other 84 Other H1 2020 H1 2021 +• Sweden: one
Slide 19: Customer numbers B2B & B2C
Customer numbers B2B & B2C E.ON H1 2021 results Customer accounts (m)1 Thereof: electricity customers (m)1 0% 41.0 0% 41.1 52.1 52.1 11.7 11.7 6.2 6.1 2.2 2.2 13.9 14.0 10.8 10.9 10.1 10.2 10.3 10.0 FY 2020 H1 2021 4.1 4.1 Thereof: gas customers (m)1 11.1 0% 11.0 13.7 13.8 2.2 2.3 4.1 3.9 10.1 10.2
Slide 20: Upgraded outlook 2021 due to nuclear production rights agreement
Upgraded outlook 2021 due to nuclear production rights E.ON H1 2021 results agreement Non-core FY2021 outlook 1 Key takeaways EBITDA EBIT • Proposal on the agreement of the use of nuclear €bn €bn production rights adopted by all necessary legislative bodies in June 2021 1.2-1.4 • EBITDA impact of ~€
Slide 21: Non-Core business
Non-Core business E.ON H1 2021 results EBIT1 Drivers €m +• Nuclear +198% production rights agreement 717 Preussen (~€500m) Elektra +• Higher availability of plants Preussen 694 Elektra 241 Turkey –• FX effects Generation 222 Generation +• Improved operational performance Turkey 23 19 H1 2020 H1 2021
Slide 22: Adjusted Net Income
Adjusted Net Income E.ON H1 2021 results €m H1 2020 H1 2021 % YoY EBITDA1 3,679 4,768 +30 Depreciation/amortization -1,494 -1,605 -7 1 EBIT 2,185 3,163 +45 Economic interest expense (net) -559 -496 +11 1 EBT 1,626 2,667 +64 1 Income Taxes on EBT -406 -614 -51 % of EBT 1 -25% -23% +8 Non-controlling
Slide 23: Reconciliation of EBIT to IFRS Net Income
Reconciliation of EBIT to E.ON H1 2021 results IFRS Net Income €m H1 2020 H1 2021 % YoY 1 EBITDA 3,679 4,768 +30 Depreciation/Amortization/Impairments -1,494 -1,605 -7 1 EBIT 2,185 3,163 +45 Interest result -332 -361 -9 Net book gains 159 59 -63 Restructuring -305 -176 +42 Mark-to-market valuation o
Slide 24: Cash-effective investments
Cash-effective investments E.ON H1 2021 results €m H1 2020 H1 2021 % YoY Energy Networks 1,299 1,320 +2 Customer Solutions 332 306 -8 Corporate Functions & Other -365 133 +136 Consolidation -2 1 +150 Non-Core 158 148 -6 Investments 1,422 1,908 +34 24
Slide 25: Economic Net Debt
Economic Net Debt1 E.ON H1 2021 results €m 31 Dec 2020 30 Jun 2021 Liquid funds 4,795 3,523 Non-current securities 1,887 1,790 Financial liabilities -30,720 -31,399 2 Adjustment FX hedging 82 216 Net Financial Position -23,956 -25,870 Provisions for pensions -8,088 -6,400 Asset retirement obligation
Slide 26: Economic interest expense (net)
Economic interest expense (net) E.ON H1 2021 results Difference €m H1 2020 H1 2021 (in € m) Interest from financial assets/liabilities -526 -487 39 Interest cost from provisions for pensions and similar provisions -47 -31 16 Accretion of provisions for retirement obligation and similar provisions -2
Slide 27: END unchanged despite high investments and dividend payment
END unchanged despite high investments and dividend E.ON H1 2021 results payment €bn -8.6 Asset Retirement Obligations (ARO) -8.7 Pension provisions Net financial position -6.4 -8.1 -25.9 -24.0 +1.2 +1.7 +0.1 -40.7 -1.5 -40.9 -1.6 END OCF Net Investments Pensions2 Dividends Other END FY 2020 H1 2021
Slide 28: Bond maturities
Bond maturities E.ON H1 2021 results Bond maturities as of end H1 20211 €bn 17.2 Refinancing benefits Volume % Coupon until 2023 of up to 1.5 ~€150m2 1.3 1.2 1.0 5.7% 0.0% 1.1 5.9% 5.6% 0.9 0.8 0.8 0.7 0.0% 3.9% 0.5 6.5% 0.4% 0.8% 0.3 0.0% 3.0% 0.0% 1.0% 1.0% 5.5% 0.9% 5.5% Q3 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q
Slide 29: Financial calendar & important links
Financial calendar & important links E.ON H1 2021 results Financial calendar November 10, 2021 Quarterly Statement: January – September 2021 November 23, 2021 Capital Markets Day 2021 March 16, 2022 Annual Report 2021 May 11, 2022 Quarterly Statement: January – March 2022 May 12, 2022 2022 Annual Sh
Slide 30: E.ON's Investor Relations Team
E.ON‘s Investor Relations Team E.ON H1 2021 results Analysts & Institutional Investors Verena Nicolaus-Kronenberg Max Sadrina Head of Investor Relations Manager Investor Relations verena.nicolaus-kronenberg@eon.com max.sadrina@eon.com +49 172 8344377 +49 152 09331400 Event & Roadshow Management Mart
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