Slide 1: H1 2022 results
#StandWithUkraine H1 2022 results
Slide 2: Short-term responsibility translates into long-term opportunity
Short-term responsibility translates into E.ON H1 2022 results long-term opportunity E.ON takes over responsibility in the crisis … … whilst fully on track for delivery in 2022 and beyond Solid H1 results despite ongoing crisis Helping our customers Providing security of supply Confirmation of Group
Slide 3: Unprecedented pace in introducing and adapting energy policies in retail markets
Unprecedented pace in introducing and E.ON H1 2022 results adapting energy policies in retail markets Current support schemes in retail markets Germany UK Netherlands End customer pricing EnSiG §26 surcharge SVT price cap - €300 £1,200 €800 Energy bill support schemes payment/ customer discount/ vul
Slide 4: Implementation of growth strategy fully on track
Implementation of growth strategy fully on track E.ON H1 2022 results Growth Sustainability Digitalization • Energy Networks • Increased share of German PV business • New joint venture with Igneo aims to supply On track to invest >€4bn in 2022 into mainly 'Mehr Ampere' to now 100% - leading to more
Slide 5: Strong operational and financial performance
Strong operational and financial performance E.ON H1 2022 results On track despite crisis H1 key financials Strong BBB/Baa rating target H1 business performance paves the way for Core EBITDA1 outlook 2022 Debt factor target2 FY 22 delivery €6.9-7.1bn 4.8x -5.2x €bn 3.7 38.8 3.6 37.4 Interest rate de
Slide 6: Solid performance of Core business – Non-Core lower due to positive 2021 one-off
Solid performance of Core business – E.ON H1 2022 results Non-Core lower due to positive 2021 one-off EBITDA1 Key drivers €m Organic RAB growth Milder weather H1 2021 4,768 Energy Germany: Realization of synergies, Networks increasing efficiencies Energy Sweden, CEE & Turkey: Increased costs for -83
Slide 7: Financial leeway has widened further from current interest rate environment
Financial leeway has widened further E.ON H1 2022 results from current interest rate environment Economic net debt – quarterly comparison €bn -7.9 -7.9 Asset Retirement Obligations (ARO) -2.4 -4.7 Pension provisions Net financial position Debt factor target3 4.8x -5.2x FY 2022 expected +2.4 -27.2 -2
Slide 8: Customer Solutions Germany – EnSiG §26 gas price surcharge treated as pass through
Customer Solutions Germany – E.ON H1 2022 results EnSiG §26 gas price surcharge treated as pass through Average household gas bill components1 In total neutral net working capital impact • EnSiG §26 surcharge can be collected in context of EnSiG §26 surcharge normal price adjustments from October 1s
Slide 9: We deliver on our 2022 guidance
We deliver on our 2022 guidance E.ON H1 2022 results Core EBITDA1 outlook 2022 Group EBITDA1 outlook 2022 Regular business performance H2 + Capex driven business growth €7.6-7.8bn + Synergies Upgrade: Non-Core EBITDA1: €0.8-1.0bn (€0.6-0.8bn) + Efficiencies + Tariff increases Capex2 outlook 2022 + C
Slide 10: We confirm our mid-term delivery plan until 2026
We confirm our mid-term delivery plan until 2026 E.ON H1 2022 results Dividend per share (DPS) growth of up to 5% p.a. until 2026 EBITDA1,2 2026: ~€7.8bn / 4-5% CAGR3 2022-2030: Average 5-year rolling4 EPS1,2 2026: ~€0.90 / 7-9% CAGR3 EPS CAGR at least 5% Total capex 2022-2026: ~€27bn Capital struct
Slide 11: Financial Update
E.ON H1 2022 results Financial Update 11
Slide 12: Guidance overview
Guidance overview E.ON H1 2022 results Change vs. May 2022 2022-2030 €bn Actual FY 2021 FY 20224 FY 2026 CAGR 21-26 (5yr rolling)7 Core EBITDA1 6.272 6.9-7.1 ~7.8 4-5% - Energy Networks 4.988 5.5-5.7 6.0-6.2 ~4% - Customer Solutions 1.492 1.5-1.7 1.9-2.2 5-8% - Energy Retail 1.013 1.0-1.2 1.2-1.4 3-
Slide 13: Segment outlook 2022 remaining year
Segment outlook 2022 remaining year E.ON H1 2022 results EBITDA1 key drivers 2022 All: Energy Retail: PreussenElektra: Organic RAB growth Germany: Tariff adjustments, Higher realized market prices operational improvements, synergies Germany: End of operation: Brokdorf & Grohnde Customer Solutions UK
Slide 14: Energy Networks: Network losses
Energy Networks: Network losses E.ON H1 2022 results Estimated 2022 net impact from Regulatory accepted Impact from Recovery network losses Countries procurement approach & network losses on mechanism for Price view as of Q1 Price view as of H1 tariff reflection 2021 actuals network losses results r
Slide 15: Financial overview
Financial overview €m H1 2021 H1 2022 %YoY Sales 33,040 52,845 +60 EBITDA1 4,768 4,061 -15 EBIT1 3,163 2,677 -15 Adjusted Net Income1 1,765 1,413 -20 OCFbIT 2,171 2,574 +19 Investments 1,908 1,736 -9 Economic Net Debt2 -38,773 -37,444 +3 1. Adjusted for non-operating effects 2. As of 31 December 202
Slide 16: Financial leeway has widened
Financial leeway has widened E.ON H1 2022 results Economic net debt – FY comparison €bn -8.0 -7.9 Asset Retirement Obligations (ARO) -2.4 -6.1 Pension provisions Net financial position Debt factor target3 4.8x -5.2x +3.7 -27.2 -24.7 +1.8 -1.0 -1.5 -0.1 -37.4 -38.8 -1.6 END OCF Net Pensions2 Marginin
Slide 17: Adjusted Net Income
Adjusted Net Income E.ON H1 2022 results ANI €m vs. H1 2021: vs. H1 20212: -15% -20% 4,061 0.54 EPS 2,677 Tax rate at ~25% (€ per share) -1,384 2,215 -462 1,413 -554 -248 Group EBITDA1 D&A Group EBIT1 Economic Profit Income taxes Minorities Adjusted interest result before Taxes1 Net Income1 1. Adjus
Slide 18: Cash conversion rate of 70% in H1 2022
Cash conversion rate of 70% in H1 2022 E.ON H1 2022 results CCR1 €bn 70% CCR 1 4.1 0.0 2.6 -1.5 1.8 -0.5 -0.3 0.1 -1.7 Group Cash Change in WC OCFbIT Interest Tax payments OCF Capex FCF EBITDA2 adjustments3 payments 1. Cash Conversion Rate (CCR): (OCF bIT + provision utilization nuclear) ÷ EBITDA 2.
Slide 19: Energy Networks
Energy Networks E.ON H1 2022 results EBITDA1 Drivers Organic RAB growth €m All Milder weather 2,737 CEE & Turkey 562 -3% 2,654 363 Germany Increasing efficiencies 239 Realization of synergies Sweden 276 Increased costs for network losses/ tariff adjustm. 2,052 Sweden Add. OPEX due to storms Germany
Slide 20: Customer Solutions
Customer Solutions E.ON H1 2022 results EBITDA1 Drivers €m All Increased energy procurement cost not yet fully passed through in H1 1,114 Milder weather -8% 1,024 140 Other 375 Germany Realization of synergies UK 352 221 Benelux 100 169 UK Ongoing restructuring benefits and cost savings Germany 418
Slide 21: Customer numbers B2B & B2C
Customer numbers B2B & B2C E.ON H1 2022 results Customer accounts Thereof: electricity customers m1 m1 47.8 -1% 47.4 36.9 12.0 -1% 36.7 11.9 14.4 14.2 5.7 5.6 2.2 2.1 6.7 6.7 10.3 10.4 9.3 9.1 FY 2021 H1 2022 4.1 4.1 Thereof: gas customers 9.7 9.6 m1 10.3 10.4 10.9 2.4 -2% 10.7 2.3 3.6 3.5 FY 2021 H
Slide 22: Customer Solutions: EIS/Retail
Customer Solutions: EIS/Retail E.ON H1 2022 results EBITDA1 Drivers €m Increased energy procurement cost not yet fully passed through in H1 1,114 -17% 1,024 Energy Milder weather Realization of synergies Retail Ongoing restructuring benefits Retail 859 711 +23% Organic growth from new projects EIS A
Slide 23: Non-Core business
Non-Core business E.ON H1 2022 results EBITDA1 Drivers €m Nuclear production rights agreement 2021 Preussen Higher realized market prices Elektra End of operation Brokdorf & Grohnde Preussen 1,040 -54% Elektra 480 Turkey Higher realized market prices 1,017 Generation Generation FX effects 390 Turkey
Slide 24: Adjusted Net Income
Adjusted Net Income €m H1 2021 H1 2022 %YoY EBITDA1 4,768 4,061 -15 Depreciation/amortization -1,605 -1,384 +14 EBIT1 3,163 2,677 -15 Economic interest expense, net -497 -462 +7 EBT1 2,666 2,215 -17 Income Taxes on EBT1 -613 -554 +10 % of EBT1 -23% -25% -9 Non-controlling interests -288 -248 +14 Adj
Slide 25: Cash-effective investments
Cash-effective investments €m H1 2021 H1 2022 %YoY Energy Networks 1,320 1,370 +4 Customer Solutions 302 337 +12 Thereof EIS 170 225 +32 Corporate Functions & Other 137 25 -82 Consolidation 1 -1 -200 Non-Core 148 5 -97 Investments 1,908 1,736 -9 25
Slide 26: Economic Net Debt
Economic Net Debt €m FY 2021 H1 2022 Liquid funds 5,965 6,809 Non-current securities 1,699 1,426 Financial liabilities -32,730 -35,929 Adjusted FX hedging2 391 463 Net financial position -24,675 -27,231 Provisions for pensions -6,082 -2,357 Asset retirement obligations -8,016 -7,856 Economic Net Deb
Slide 27: Economic interest expense (net)
Economic interest expense (net) €m H1 2021 H1 2022 YoY Interest from financial -487 -447 40 assets/liabilities Interest cost from provisions for -31 -28 3 pensions and similar provisions Accretion of provisions for retirement obligations and -0 -3 -3 similar provisions Construction period interest1
Slide 28: Reconciliation of EBITDA to IFRS Net Income
Reconciliation of EBITDA to IFRS Net Income €m H1 2021 H1 2022 %YoY EBITDA1 4,768 4,061 -15 Depreciation/Amortization/Impairments -1,605 -1,384 +14 EBIT1 3,163 2,677 -15 Interest result -361 471 +230 Net book gains 59 -56 -195 Restructuring -176 -62 +65 Effects from derivate financial instruments 1,
Slide 29: Sound funding strategy accessing various markets
Sound funding strategy accessing various markets E.ON H1 2022 results • Bond refinancing €2.5-5bn p.a. • Cash utilization of asset retirement obligations Volumes • Optimize maturity profile and interest costs 3-30 years preferred • Redemptions on any single day capped at €1bn Tenors • Going forward,
Slide 30: Bond maturities
Bond maturities E.ON H1 2022 results Bond maturities as of end H1 20221 €bn 17.7 Volume % Coupon 1.5 1.3 1.2 0.0% 1.1 5.9% 0.9 0.0% 0.0% 0.8 3.9% 0.8 0.8 0.8 0.8 5.7% 0.5 0.5 0.5 0.4% 0.8% 0.3 3.0% 0.0% 0.9% 1.0% 1.0% 0.3% 5.5% 5.6% 0.9% 0.1% 1.6% 5.5% Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q1 Q2 Q4 Q1 Q2 Q4 >2026
Slide 31: Financial calendar & important links
Financial calendar & important links E.ON H1 2022 results Financial calendar November 9, 2022 Quarterly Statement: January – September 2022 March 15, 2023 Full Year Financial Report: 2022 May 10, 2023 Quarterly Statement: January – March 2023 May 17, 2023 Annual General Meeting Important links Prese
Slide 32: E.ON Investor Relations Team
E.ON Investor Relations Team E.ON H1 2022 results General Contact: +49 201 184 2806 investorrelations@eon.com Analysts & Institutional Investors Verena Nicolaus-Kronenberg Max Sadrina Britta Wöhner Head of Investor Relations Manager Investor Relations Manager Investor Relations verena.nicolaus-krone
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Slide 34: 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