Slide 1: Q1 2020 Results
Q1 2020 Results May 12th, 2020 Dividend growth Customer centric energy infrastructure Sustainability Performance
Slide 2: Q1 2020: Solid financial and operational performance
E.ON Q1 2020 results Q1 2020: Solid financial and operational performance innogy integration progressing as planned, Key Financials1 synergy delivery on track €m € bn 1,548 Virtual Annual General Meeting scheduled, 1,460 40.2 dividend proposal of €0.46/share for FY 2019 39.4 Accelerated network inve
Slide 3: Holistic crisis management ensures continuity of operations
Holistic crisis management ensures continuity E.ON Q1 2020 results of operations People & locations • Early adoption of remote working • Necessary health and safety measures in place Operations • Implementation of on-site concepts COVID-19 • Operations almost undisturbed due to strong implemented sa
Slide 4: Energy Networks: ~90% of EBIT protected against volume variation
Energy Networks: ~90% of EBIT protected against E.ON Q1 2020 results volume variation 1 Germany (schematic) 2 Mechanisms in other main markets Unutilized allowed Allowed revenue revenue reversed1 • Sweden: Revenue cap, full flexibility of recovery utilization (%) • Czech Republic: Revenue cap, recov
Slide 5: Customer Solutions: proactive sell-back management and bad debt steering
Customer Solutions: proactive sell-back management E.ON Q1 2020 results and focus on operational excellence in bad debt steering 1 Covid-19 related sell-back volumes as of 30th April Share of 2020 volumes … of which sold • Total Group impact of Covid-19 related sell back exposed to demand fluctuatio
Slide 6: EBIT development impacted by mild weather in Q1 2020
EBIT development impacted by mild weather in Q1 2020 E.ON Q1 2020 results EBIT1 Q1 2020 vs. Q1 2019 pro forma Key drivers €m Q1 2019 1,548 pro forma Energy –• Germany: weather-related lower volumes Energy Networks –• Sweden: lower WACC in new regulatory -89 period Networks Customer -52 Solutions Cor
Slide 7: Adjusted Net Income in line with EBIT development
Adjusted Net Income in line with EBIT development E.ON Q1 2020 results Q1 2020 €m Group EBIT1 1,460 Economic -297 interest result Profit 1,163 before Taxes1 Income taxes -291 Tax rate at ~25% Minorities -181 0.27 EPS (€ per share) Adjusted 691 Net Income1 1. Adjusted for non operating effects 7
Slide 8: Q1 2020 Economic Net Debt reconciliation
Q1 2020 Economic Net Debt reconciliation E.ON Q1 2020 results € bn -8.9 Asset Retirement Obligations (ARO) -8.8 Pension provisions -6.8 -7.2 Net financial position -23.4 -24.6 +0.3 -39.4 +1.1 -0.9 -0.7 -40.2 -0.7 END OCF Net Investments Transfer of Nord Pensions2 Other (incl. AROs) END FY 2019 Q1 20
Slide 9: Group outlook 2020 confirmed
Group outlook 2020 confirmed E.ON Q1 2020 results Group Guidance1: EBITDA2: €7.1-7.3bn EBIT2: €3.9-4.1bn ANI2: €1.7-1.9bn Capex3: €~4.5bn Segment Guidance1,3: Energy Networks Customer Solutions Non-Core EBITDA: €5.2-5.4bn EBITDA: €1.0-1.2bn (€1.1-1.3bn) EBITDA: €0.8-1.0bn EBIT: €3.3-3.5bn
Slide 10: E.ON's 2020-2022 delivery plan confirmed
E.ON’s 2020-2022 delivery plan confirmed E.ON Q1 2020 results Dividend per share (DPS) growth up to 5% p.a. EBIT1 growth Group EPS1 growth Group 7-9% CAGR 10-15% CAGR cash conversion Average strong Capital structure with rate2of 95% BBB/Baa rating 1. Adjusted for non operating effects; reflection of
Slide 11: Financial Appendix
Q1 2020 Results Financial Appendix
Slide 12: Guidance overview
Guidance overview E.ON Q1 2020 results Change in guidance € bn 2019 pro forma3 20204 2020-20224 EBITDA1 6.897 7.1-7.3 3-4% CAGR Energy Networks 5.359 5.2-5.4 Customer Solutions 1.124 1.0-1.2 Non-Core 0.617 0.8-1.0 Corporate Functions & Other -0.203 ~-0.3 EBIT1 4.134 3.9-4.1 7-9% CAGR Energy Networks
Slide 13: Segment outlook 2020 remaining year
Segment outlook 2020 remaining year E.ON Q1 2020 results EBIT1 key drivers Q2 – Q4 2020 Energy Networks Customer Solutions Non-Core Germany: Germany/UK/Netherlands: PreussenElektra: •+ Organic RAB growth –•– Weather impact •+ Higher hedged prices •– Lower volumes •– Sell-back of volumes (B2B) •– Hig
Slide 14: Electricity consumption relative to 2019
Electricity consumption relative to 2019 E.ON Q1 2020 results March 2nd – March 6th 2020 May 4th – May 8th 2020 <-20% -20% up to -10% -10% up to -5% -5% up to +5% +5% up to +10% Source: ENTSO-e data. 2019 comparison of calendar week 10 and calendar week 19 of respective year. Analysis only includes
Slide 15: Financial highlights
Financial highlights E.ON Q1 2020 results Q1 2019 €m Q1 2020 % YoY pro forma Sales - 17.665 - EBITDA1 2.184 2.184 - EBIT1 1.548 1.460 -6 Adjusted Net Income1 752 691 -8 OCFbIT - -400 - Investments 678 918 +35 Economic Net Debt² -39.430 -40.249 -2 1. Adjusted for non operating effects; pro forma figu
Slide 16: Cash conversion in Q1 seasonally low
Cash conversion in Q1 seasonally low E.ON Q1 2020 results Q1 2020 € bn 2.2 0.5 -3.0 -0.4 -0.2 -0.3 -0.9 -0.9 -1.8 Group Cash Change in WC OCFbIT Interest Tax payments OCF Capex FCF EBITDA1 adjustments2 payments 1. Adjusted for non operating effects 2. Net non cash effective EBITDA items incl. provis
Slide 17: Divisions: Energy Networks
Divisions: Energy Networks E.ON Q1 2020 results EBIT1 Drivers €m CEE & Turkey 1,150 180 –7% 1,061 Germany –• Weather-related lower volumes 143 198 Sweden 97 Germany 827 766 Sweden –• Lower WACC in new regulatory period –• Higher transmission fees and grid losses Q1 2019 Q1 2020 pro forma €m Germany
Slide 18: Divisions: Customer Solutions
Divisions: Customer Solutions E.ON Q1 2020 results EBIT1 Drivers €m All –• Weather impact on volumes 352 –15% 300 Germany 234 175 Germany +• Growing customer numbers Benelux 52 57 Other 85 81 UK +• Restructuring benefits UK Q1 2019 Q1 2020 pro forma €m Germany Benelux UK Other Total Q1 2019 Q1 2019
Slide 19: Customer numbers B2B & B2C
Customer numbers B2B & B2C E.ON Q1 2020 results Continued growth outside UK (in m)1 Thereof: electricity customers (in m) 1 Customer accounts +0.3% +0.2% 40.5 40.6 51.0 51.1 11.9 12.0 5.9 5.9 2.3 2.3 14.2 14.3 10.5 10.5 9.8 9.9 9.6 9.6 FY 2019 Q1 2020 4.3 4.3 Thereof: gas customers (in m) 1 10.5 +0.
Slide 20: Non-Core business
Non-Core business E.ON Q1 2020 results EBIT1 Drivers €m +12% 183 164 +• Higher achieved power prices Preussen –• Higher depreciation from purchase of Preussen 135 155 Elektra production rights Elektra –• Transfer of minority stakes2 to RWE Generation Turkey 29 28 Q1 2019 Q1 2020 PreussenElektra: Hed
Slide 21: Adjusted Net Income
Adjusted Net Income E.ON Q1 2020 results Q1 2019 €m Q1 2020 % YoY pro forma EBITDA1 2.184 2.184 +0 Depreciation/amortization -636 -724 -14 EBIT1 1.548 1.460 -6 Economic interest expense (net) -294 -297 -1 EBT1 1.254 1.163 -7 Income Taxes on EBT1 -321 -291 +9 % of EBT 1 -26% -25% - Non-controlling in
Slide 22: Reconciliation of EBIT to IFRS Net Income
Reconciliation of EBIT to E.ON Q1 2020 results IFRS Net Income €m Q1 2019 Q1 2020 % YoY 1 EBITDA 1.671 2.184 +31 Depreciation/Amortization/Impairments -496 -724 -46 1 EBIT 1.175 1.460 +24 Reclassified businesses of Renewables -204 0 +100 Interest result -261 -415 -59 Net book gains 12 5 -58 Restruct
Slide 23: Cash effective investments
Cash effective investments1 E.ON Q1 2020 results Q1 2019 €m Q1 2020 % YoY pro forma Energy Networks 431 575 +33 Customer Solutions 199 155 -22 Corporate Functions & Other 46 33 -28 Consolidation 0 -1 - Non-Core 2 156 - Investments 678 918 +35 1. Pro forma figures Q1 2019, not audited 23
Slide 24: Economic Net Debt
Economic Net Debt1 E.ON Q1 2020 results €m 31 Dec 2019 31 Mar 2020 Liquid funds 3.602 3.629 Non-current securities 2.353 2.326 Financial liabilities -29.482 -30.783 Adjustment FX hedging² 167 261 Net Financial Position -23.360 -24.567 Provisions for pensions -7.201 -6.843 Asset retirement obligation
Slide 25: Economic interest expense (net)
Economic interest expense (net)2 E.ON Q1 2020 results Q1 2019 Difference €m Q1 2020 pro forma (in € m) Interest from financial assets/liabilities -252 -265 -13 Interest cost from provisions for pensions and similar provisions -31 -23 +8 Accretion of provisions for retirement obligations and similar
Slide 26: Bond maturities
Bond maturities E.ON Q1 2020 results Bond maturities as of end Q1 20201,2 15.5 € bn Volume % Coupon 1.8 1.5 1.4 0.4% 1.3 1.2 5.7% 0.0% 5.6% 0.9 0.8 0.6 0.6 0.0% 3.9% 5.8% 0.5 6.5% 0.8% 0.3 0.0% 3.0% 0.0% 3.2% 6.5% 5.5% 0.1 0.9% 5.5% 5.9% Q2 Q4 Q2 Q3 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 >2024 2020 20202 2021 2021
Slide 27: Financial calendar & important links
Financial calendar & important links E.ON Q1 2020 results Financial calendar May 28, 2020 2020 Annual Shareholders Meeting (online) June 2, 2020 Dividend Payment Day August 12, 2020 Half-Year Financial Report: January – June 2020 November 11, 2020 Quarterly Statement: January – September 2020 March
Slide 28: E.ON Group Investor Relations contacts
E.ON Group Investor Relations contacts Analysts & Institutional Investors Private Shareholders Verena Nicolaus-Kronenberg Martin Jäger Sandra Schuck Head of Investor Relations Manager Investor Relations Manager Investor Relations verena.nicolaus-kronenberg@eon.com martin.jaeger@eon.com sandra.schuck
Slide 29: 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