Slide 1: Full year 2023 results
it‘s on us Full year 2023 results March 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 1 Strong 2023 delivery 2 Profitable growth across 3 Strategic foundation 4 Creating value for all segments shareholders We deliver on our promises Our strategy and business Pioneering the digital Growing dividends from our and take respon
Slide 3: 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 4: New political reality fully backing secular growth momentum
New political reality 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 targ
Slide 5: The new segmentation allows for more transparency on value creation
The new segmentation allows for more transparency on value creation in our businesses Energy Networks Energy Infrastructure Solutions Energy Retail Operating the largest energy distribution Industries and cities face major energy We are helping private households and network in Europe being the back
Slide 6: Energy Networks: Paving the way for our growth acceleration
Energy Networks: Paving the way for our growth acceleration using our scale advantages Operations Supply Chain Permitting • Hiring program: Recruiting of >5,000 • Secured availability: Achieved to secure • Increased awareness: Extensive focus colleagues in 2023 and prepared to hire all key materials
Slide 7: Energy Networks: Unprecedented growth cycle across all our markets
Energy Networks: We are seeing an unprecedented growth cycle across all our markets Indicative annual investment spending Power Regulated Asset Base (RAB) main countries €bn €bn Germany Sweden Czech Republic ~10% ~8% ~9% Capex run-rate increased by CAGR1,2 CAGR2 CAGR2 ~40% in real terms 2021-2023 ~7
Slide 8: Energy Networks: Regulatory achievements and inflation protection
Energy Networks: Regulatory achievements and inflation protection ensuring value creation for all investments Fully capitalizing upon our regional diversification % E.ON Germany Country System Inflation protection RAB3 • First increases of regulatory return on new invest Cost of equity 7.09%1 • Cont
Slide 9: Energy Infrastructure Solutions: Highly visible returns from long-term contracted infrastructure
Energy Infrastructure Solutions: Highly visible returns from long- term contracted infrastructure Comprehensive portfolio Attractive contract terms Delivering strong return profile • Low carbon heating and cooling • Long-term customer relationships with • ~€5bn total capex 2024-28 networks in urban
Slide 10: Energy Retail: Large customer base offering strong cash returns
Energy Retail: Large customer base offering strong cash returns and platform for additional customer offerings System-relevance Best owner Convergence of services Reliable energy supply Managing for efficiency Growing share-of-wallet via new solutions Digitalization 47 Target to fully digitize and a
Slide 11: Digitalization: Pioneering the digital transformation of the energy sector
Digitalization: We are pioneering the digital transformation of the energy sector Creating an end-to-end digitized energy value chain with 4 strategic pillars and strong ambitions IT Operations Digital Networks Digital Customers Digital Enabler A strong IT foundation and Smart & reliable to manage t
Slide 12: 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 13: Our growth strategy significantly enhances value for our shareholders
Our growth strategy significantly enhances value for our shareholders ~€42bn total investments Uniquely positioned to capture unprecedented investment opportunities in our businesses 10% power RAB CAGR Energy Networks with massive growth in a regulated >€11bn EBITDA 2028 • environment • Energy Infra
Slide 14: 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 EPS and DPS momentum growth Over delivery on 2023 Significant capex step-up in Capex program financed via Visible value creation path earnings targets in
Slide 15: Over delivery on earnings driven by investments into networks
Over delivery on earnings driven by investments into networks, normalization of retail margins and non-recurring effects EBITDA1 Key Drivers €m Energy Networks FY 2022 8,059 • RAB growth • Germany: timing effects from lower redispatch cost Non-Core -1,084 • Sweden and CEE: recovery of network losses
Slide 16: Significant year-over-year EPS growth driven by strong EBITDA development
Significant year-over-year EPS growth driven by strong EBITDA development ANI1 €m vs. FY 20222 vs. FY 20222 +34% +58% 9,370 Tax rate at ~25% 1.18 EPS1 6,387 (€ per share) -2,983 5,305 -1,082 -1,325 3,068 -912 Group EBITDA1 D&A1 Group EBIT1 Economic Profit Income taxes Minorities Adjusted interest re
Slide 17: Comfortable debt factor at year end
Comfortable debt factor at year end as strong foundation for the acceleration of our growth plan Economic Net Debt – quarterly comparison €bn -6.9 -3.5 -7.4 Comfortable debt factor Asset Retirement Obligations (ARO) at year end Pension provisions -5.0 4.0x3 Net financial position Investment momentum
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 1 0.53 continue to deliver. 0.30 0.21 2016 2017 2018 2019 2020 2021 2022 2023 2028 Full year 2023 results 1. Subjec
Slide 23: Financial appendix
financial appendix
Slide 24: Guidance overview
Guidance overview €bn Actual FY 2023 FY 2024 FY 2028 EBITDA1 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 Income1 3.068 2.8-3.0 ~3.3 EPS1 € 1.18 €1.0
Slide 25: Selected macro assumptions
Selected macro assumptions1 2024 2028 0.5 1.4 Real GDP variation (%) 0.5 1.4 2.8 2.0 Inflation (%) 2.8 1.9 25 24 396 429 4.5 4.4 Exchange rates 5.1 5.2 (local currency / €) 11.8 10.0 38 46 0.89 0.88 Assumed long-term refinancing ~4 ~4 rates2 (%) Full year 2023 results Source: S&P Global Economics 1.
Slide 26: Energy Networks Germany: EBITDA composition
Energy Networks Germany: EBITDA composition Average EBITDA composition 2024 -2028 Evolution across plan period Details operational ambition Growing over the plan Return on RAB ~35% from 20% to >40%1 RAB driven Operational ambition based on our Regulatory D&A ~30% Broadly stable efficiency gains from
Slide 27: Key performance drivers for 2023
Key performance drivers for 2023 EBITDA1 Energy Networks Customer Solutions All All + Organic RAB growth + Normalization of retail margins Germany + Improved market environment + Redispatch cost Energy Retail + Increasing efficiencies + Germany & Netherlands: Procurement optimization Sweden + UK: Ma
Slide 28: Financial Overview
Financial Overview €m FY 2022 FY 2023 %YoY Sales 115,660 93,686 -19 EBITDA1 8,059 9,370 +16 EBIT1 5,197 6,387 +23 Adjusted Net Income1 2,728 3,068 +12 OCFbIT 11,511 7,225 -37 Investments 4,753 6,421 +35 Economic Net Debt2 -32,742 -37,691 -15 1. Adjusted for non-operating effects 2. Bonds previously
Slide 29: Economic Net Debt development FY22 to FY23
Economic Net Debt development FY22 to FY23 Economic Net Debt €bn -7.4 -7.4 -3.7 Asset Retirement Obligations (ARO) -5.0 Pension provisions Net financial position Debt factor FY 20233 4.0x -21.6 +5.7 -25.3 -32.7 -6.2 -1.7 -0.1 -1.6 -1.1 -37.7 END OCF Net Investments Pensions2 Margining effects Divide
Slide 30: Cash conversion rate of 80% in FY 2023
Cash conversion rate of 80% in FY 2023 impacted by spillovers from 2022 CCR1 €bn 80% CCR 9.4 -0.3 7.2 -1.8 -0.9 5.7 -0.7 -6.4 -0.8 EBITDA2 Cash Change in WC OCFbIT Interest Tax payments OCF Investments FCF adjustments3 payments Full year 2023 results 1. Cash Conversion Rate (CCR): OCFbIT excl. OCFbI
Slide 31: Energy Networks
Energy Networks EBITDA1 Drivers €m 6,640 All Germany + RAB growth + Redispatch cost 5,459 + Increasing efficiencies +22% Germany Sweden CEE & Turkey Sweden + Increased recovery for network losses + Increased recovery for network losses - Lower volumes (esp. Slovakia and Romania) CEE & Turkey FY2022
Slide 32: Customer Solutions
Customer Solutions EBITDA1 Drivers €m 2,807 All Germany + Normalization of retail margins + Procurement optimization + Improving market environment + Normalization of B2B margins +66% 1,686 Germany UK UK Other Netherlands + Recovery of tariff deficit of Q4 2022 + Romania: Normalization of business c
Slide 33: Customer numbers B2B & B2C
Customer numbers B2B & B2C Customer accounts Thereof: electricity customers m1 m1 36.8 36.8 47.6 47.3 6.5 6.7 10.6 10.7 9.5 9.6 2.1 2.1 0% 5.6 5.4 10.6 10.7 12.0 11.9 FY 2022 FY 2023 4.0 3.9 ~-1% 9.1 8.9 Thereof: gas customers m1 10.8 10.5 14.4 14.2 3.0 2.9 1.9 1.8 Germany FY 2022 FY 2023 Germany ~-
Slide 34: Energy Retail & Energy Infrastructure Solutions
Energy Retail & Energy Infrastructure Solutions EBITDA1 Drivers €m 2,807 Energy Retail Energy Infrastructure Solutions -8% + All countries: Normalization of retail margins + Organic growth from new projects and improved market environment - Non-recurring aperiodic effects & FX 1,686 + Germany: Procu
Slide 35: Adjusted Net Income
Adjusted Net Income €m FY 2022 FY 2023 %YoY EBITDA1 8,059 9,370 +16 Depreciation/amortization -2,862 -2,983 -4 EBIT1 5,197 6,387 +23 Economic interest expense, net -890 -1,082 -22 EBT1 4,307 5,305 +23 Income Taxes on EBT1 -1,062 -1,325 -25 % of EBT1 -25% -25% - Non-controlling interests -517 -912 -7
Slide 36: Cash-effective investments
Cash-effective investments €m FY 2022 FY 2023 %YoY Energy Networks 3,845 5,156 +34 Customer Solutions 831 1,124 +35 Thereof EIS 523 684 +31 Corporate Functions 761 141 +86 Consolidation 1 0 -100 Investments 4,753 6,421 +35 1. Incl. Non-Core €7m in FY22 Full year 2023 results 36
Slide 37: Economic Net Debt
Economic Net Debt €m FY 2022 FY 2023 Liquid funds 9,378 7,412 Non-current securities 1,347 1,177 Financial liabilities1 -32,483 -33,943 Adjusted FX hedging 196 11 Net financial position -21,562 -25,343 Provisions for pensions -3,735 -4,985 Asset retirement obligations2 -7,445 -7,363 Economic Net Deb
Slide 38: Economic interest expense (net)
Economic interest expense (net) €m FY 2022 FY 2023 YoY Interest from financial -870 -956 -86 assets/liabilities Interest cost from provisions for -51 -97 -46 pensions and similar provisions Accretion of provisions for retirement obligations and -1 -59 -58 similar provisions Construction period inter
Slide 39: Reconciliation of EBITDA to IFRS Net Income
Reconciliation of EBITDA to IFRS Net Income €m FY 2022 FY 2023 %YoY EBITDA1 8,059 9,370 +16 Depreciation/Amortization/Impairments -2,862 -2,983 -4 EBIT1 5,197 6,387 +23 Interest result 927 -1,094 +218 Net book gains 748 5 -99 Restructuring -88 -22 +76 Effects from derivative financial instruments -3
Slide 40: 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 41: Bond maturities
Bond maturities Benchmark bond maturities as of end FY 20231 17.9 Value (€bn) Coupon (%) 1.0 0.9 0.8 0.8 0.7 0.8 0.7 0.7 0.5 0.5 0.5 0.38% 3.0% 1.25% 0.0% 0.9% 1.0% 1.0% 0.25% 0.9% 0.1% 1.6% Q1 2024 Q2 2024 Q3 2024 Q1 2025 Q2 2025 Q4 2025 Q1 2026 Q2 2026 Q4 2026 Q3 2027 Q4 2027 >2027 Full year 2023
Slide 42: Financial calendar & important links
Financial calendar & important links Financial calendar May 15, 2024 May 16, 2024 August 14, 2024 November 14, 2024 Quarterly Statement Annual General Meeting Half Year Financial Report Quarterly Statement January – March 2024 January – June 2024 January – November 2024 • Presentations • Facts & Fig
Slide 43: E.ON Investor Relations team
E.ON Investor Relations team Iris Eveleigh Milagros D’Elia Andreas Thielen Head of Investor Relations Manager Investor Relations Manager Investor Relations iris.eveleigh@eon.com milagros.d‘elia@eon.com andreas.thielen@eon.com +49 170 7688749 +49 151 52298030 +49 151 67114918 Julian MilagrosJost D’El
Slide 44: 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 45: it's on us
it’s onus @-on