Slide 1: Q1 2018 Results
Q1 2018 Results 8th May 2018
Slide 2: Strong Q1 2018
Strong Q1 2018 E.ON Q1 2018 results Highlights Key Financials1 €m 1,715 Strong EBIT development: +24% Q1 2018 vs. low base in Q1 2017 1,517 1,284 Adj. Net Income increased +38% YoY 1,038 FY 2018 guidance confirmed: EBIT €2.8-3.0 bn, Adj. Net Income €1.3-1.5 bn 727 525 Voluntary PTO2 to innogy minori
Slide 3: Takeover of innogy – Official offer period has started
Takeover of innogy – Official offer period has started E.ON Q1 2018 results Highly attractive offer for innogy minority shareholders Alternatives for innogy minority shareholders that do not tender • Compensation payment based on IDW S11 • Total offer value €38.40 (= €40.00 pre 2017 valuation in cas
Slide 4: Merger control proceedings follow a strict procedure
Merger control proceedings follow a strict procedure E.ON Q1 2018 results Simplified overview of process steps of EU merger control proceedings (possible (partial) referrals to national authorities not taken into account1) Presentation of potential concerns Not before mid-2019 ≈ May 2018 regarding m
Slide 5: Operational update
Operational update E.ON Q1 2018 results Energy Networks Germany Customer Solutions Germany/UK • OLG1 court decision on allowed RoE2 • Customer numbers continue to grow • Ruling: 6.91% set by BNetzA too low • More than 50,000 additional household customers • Independent expert view: 7.7% adequate in
Slide 6: EBIT 24% above prior year
EBIT 24% above prior year E.ON Q1 2018 results EBIT1 Q1 2018 vs. Q1 2017 Key Q1 Effects €m Energy + Sweden: power tariff increase Q1 2017 1,038 Networks + Turkey: regulatory improvements – Germany: reversal of regulatory effects, Energy concession loss Hamburg -36 Networks Customer + Germany: price
Slide 7: Adj. Net Income 38% above prior year
Adj. Net Income 38% above prior year E.ON Q1 2018 results Q1 2018 €m Group EBIT1 1,284 Interest on ~€ 20m improvement yoy mainly due to refinancing fin. assets/ -156 benefits, partly compensated by lower interest income liabilities2 from asset portfolio Other interest -21 expenses Profit before 1,10
Slide 8: END impacted by seasonally low operating cash flow
END impacted by seasonally low operating cash flow E.ON Q1 2018 results END1 Q1 2018 vs. FY 2017 € bn -0.4 -10.6 -10.7 -2.9 Liquidation of pension -3.6 scheme results in reduction of pension provisions – limited effect on END -5.0 0.1 -6.0 -19.2 -0.7 0.2 0.7 -0.7 0.1 -0.1 -19.7 END FY 2017 OCF Inves
Slide 9: Outlook 2018 confirmed
Outlook 2018 confirmed E.ON Q1 2018 results Outlook 2018 Effects for the remainder of 2018 Energy + Sweden: power tariff increase Networks – Germany: reversal of regulatory €2.8-3.0 bn effects, new regulatory period for gas, concession loss Hamburg Customer + Germany: non-reoccurrence of a EBIT1 Sol
Slide 10: Appendix
Appendix 1 Financial Details 2 Contacts, Calendar & Disclaimer
Slide 11: Financial Details: Table of Contents
1 Financial Details: Table of Contents E.ON Q1 2018 results 12 13 Financial Cash Highlights Conversion 14 15 Energy Customer Networks Solution 16 Renewables 17 Non-Core 18 Financial Appendix 11
Slide 12: Financial Highlights
1 Financial Highlights E.ON Q1 2018 results EBIT Adj. Net Income • Energy Networks: -5% YoY • Improves €202 m YoY Reversal of regulatory effects in €m Q1 2017 Q1 2018 % YoY Germany and tariff increases in Driven by strong EBIT and Sweden profiting from refinancing Sales 10,480 9,330 -11 • Customer S
Slide 13: Seasonally low CCR
1 Seasonally low CCR2 E.ON Q1 2018 results Q1 2018 € bn 21% 1.7 0.0 -1.3 0.4 0.1 -0.1 -0.1 -0.7 -0.5 EBITDA1 Cash Change in WC OCF bIT Interest Tax Payments OCF Capex FCF Adjustments3 Payments 13 1. Adjusted for non operating effects, 2. Cash Conversion Rate: OCF bIT ÷ EBITDA, 3. Net non cash effect
Slide 14: Segments: Energy Networks
1 Segments: Energy Networks E.ON Q1 2018 results Energy Networks Highlights EBIT1 € m • Germany -5% – Reversal of regulatory effects 678 642 – New regulatory period gas – Concession loss Hamburg Germany 415 353 • Sweden + Power tariff increase Sweden 151 132 • CEE & Turkey CEE & Turkey 131 138 + Reg
Slide 15: Segments: Customer Solutions
1 Segments: Customer Solutions E.ON Q1 2018 results Customer Solutions Highlights EBIT1 € m +23% • Germany Sales + Price increases as per Q2 2017 392 + Lower gas procurement costs 319 – Restructuring costs 128 Germany Sales 38 • UK UK 160 148 + Price increases as per Q2 2017 – Competitive dynamics O
Slide 16: Segments: Renewables
1 Segments: Renewables E.ON Q1 2018 results Renewables Highlights EBIT1 € m +7% • Offshore/Other + UK: Ramp-up capacity additions (Rampion) 171 160 • Onshore/Solar + US: Capacity additions (Bruenning’s Breeze, Radford’s Run) Offshore/Other 99 113 – Subsidy expiries Onshore/Solar 61 58 Q1 2017 Q1 201
Slide 17: Non-core business
1 Non-core business E.ON Q1 2018 results Non-core Highlights EBIT1 € m • PreussenElektra +133 + Higher volumes due to outages of all plants in Q1 2017 109 + Positive one-off effects in Q1 2018 – Lower achieved power prices • Generation Turkey Preussen 124 Elektra + Book loss from asset sale in Q1 20
Slide 18: Adjusted Net Income
1 Adjusted Net Income E.ON Q1 2018 results €m Q1 2017 Q1 2018 % YoY EBITDA 1 1,517 1,715 +13 Depreciation/amortization -479 -431 +10 1 EBIT 1,038 1,284 +24 Economic interest expense (net) -195 -177 +9 EBT 1 843 1,107 +31 1 Income Taxes on EBT -210 -277 -32 1 % of EBT -25% -25% - Non-controlling inte
Slide 19: Reconciliation of EBIT to IFRS Net Income
1 Reconciliation of EBIT E.ON Q1 2018 results to IFRS Net Income €m Q1 2017 Q1 2018 % YoY 1 EBITDA 1,517 1,715 +13 Depreciation/Amortization/Impairments -479 -431 +10 EBIT 1 1,038 1,284 +24 Economic interest expense (net) -195 -177 +9 Net book gains 52 104 +100 Restructuring -94 -26 +72 Mark-to-mark
Slide 20: Cash effective investments by unit
1 Cash effective investments E.ON Q1 2018 results by unit €m Q1 2017 Q1 2018 % YoY Energy Networks 260 271 +4 Customer Solutions 64 74 +16 Renewables 251 180 -28 Corporate Functions & Other 8 9 +13 Consolidation 0 1 - Non-Core 5 161 - Investments 588 696 +18 20 1. Adjusted for non operating effects
Slide 21: Economic Net Debt
1 Economic Net Debt1 E.ON Q1 2018 results €m 31 Dec 2017 31 Mar 2018 Liquid funds 5,160 4,108 Non-current securities 2,749 2,449 Financial liabilities -13,021 -12,736 Adjustment FX hedging ² 114 166 Net financial position -4,998 -6,013 Provisions for pensions -3,620 -2,924 Asset retirement obligatio
Slide 22: Economic interest expense (net)
1 Economic interest expense (net) E.ON Q1 2018 results Difference €m Q1 2017 Q1 2018 (in € m) Interest from financial assets/liabilities -175 -156 +19 Interest cost from provisions for pensions and similar provisions -21 -16 +5 Accretion of provisions for retirement obligation and similar provisions
Slide 23: Financial Liabilities
1 Financial Liabilities E.ON Q1 2018 results Split Financial Liabilities Maturity profile (as of end Q1 2018)1 € bn € bn 4.8 31 Mar 2018 Bonds -10.7 in EUR -4.0 in GBP -3.9 in USD -2.4 2.0 in JPY -0.2 in other denominations -0.2 1.4 Promissory notes -0.4 1.1 0.8 Commercial papers 0.0 0.6 0.4 Other l
Slide 24: E.ON Investor Relations contacts
2 E.ON Investor Relations contacts E.ON Q1 2018 results Alexander Karnick T +49 (201) 184 28 38 Head of Investor Relations alexander.karnick@eon.com Martina Burger T +49 (201) 184 28 07 Manager Investor Relations martina.burger@eon.com Dr. Stephan Schönefuß T +49 (201) 184 28 22 Manager Investor Rel
Slide 25: Financial calendar & important links
2 Financial calendar & important links E.ON Q1 2018 results Financial calendar May 9, 2018 2018 Annual Shareholders Meeting May 14, 2018 Dividend Payment August 8, 2018 Half-Year Financial Report: January – June 2018 November 14, 2018 Quarterly Statement: January – September 2018 March 13, 2019 Annu
Slide 26: 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