E.ON SE · XETR:EOAN

E.ON — 9M 2013 Earnings Presentation

31 slides from E.ON's earnings presentation, Nov 13, 2013

  1. Slide 1: First nine months 2013 Cleaner & better energy

    First nine months 2013 Cleaner & better energy November 13, 2013

  2. Slide 2: Highlights

    Highlights  EBITDA1: €7.1bn (-19%)  EBIT1: €4.4bn (-27%) 9M 2013  Underlying net income1: €1.9bn (-53%) financial  Underlying EPS1, 2: 1 € per share (-53%) highlights  Operating cash flow: €5.3bn (-22%)  Economic net debt: from €35.9bn3 to €33.1bn  EBITDA1: New range: €9.2 – 9.3bn (previous r

  3. Slide 3: Key drivers of Group EBITDA development

    Key drivers of Group EBITDA1 development First nine months in € billion EBITDA 9M 2012 8.8 E.ON 2.0 0.4 E&P 0.3 Renewables (EC&R) 0.1 Gas midstream (Gazprom settlement) -0.7 Divestments -0.6 Revaluation one-off 2012 -0.2 Provision effects (Germany, Generation) -0.3 Power price and volume effect -0.3

  4. Slide 4: Group – Underlying net income

    E.ON Group – Underlying net income1 First nine months 2013 in € million 2013 2012 +/- % EBITDA1 7,117 8,806 -19 Depreciation/Amortization recognized in EBIT1 -2,676 -2,703 - Economic interest expense (net) -1,312 -1,027 - EBT (earnings before tax)1 3,129 5,076 -38 Income taxes on EBT1 -893 -775 - %

  5. Slide 5: Operating cash flow – Reconciliation

    Operating cash flow – Reconciliation1 First nine months 2013 in € billion 01.01.2012 – 30.09.2012 6.8 EBITDA -1.7 Provision effects in EBITDA 0.3 Revaluation one-offs in 2012 EBITDA 0.2 Gas: Higher net extraction in 2013 0.3 Germany: Higher working capital (EEG related) -0.2 Generation UK: Coal inve

  6. Slide 6: Group – Economic net debt

    E.ON Group – Economic net debt In € billion Dec 31, 2012 Sep 30, 2013 Net financial Net financial position: position: -14.7 -11.9 -35.9 -36.4 -33.1 +0.6 +5.3 -6.3 +6.7 -2.3 -1.1 Operating Pension Investments Dividends Other Divestments Cash Flow Obligations1 First nine months net debt profiting from

  7. Slide 7: Disposal proceeds and dilution overview

    Disposal proceeds and dilution overview Disposal proceeds 1,2 EBITDA effect of disposals in 2013 and 2014 (€bn)  Gazprom 1.4 Disposal impact 2014  Central Networks 1.2 Disposal impact 2013  Open Grid Europe  50% of Horizon 1.0  E.ON Rete 0.8  HSE Shares  Other transactions 0.6 Closed transact

  8. Slide 8: Outlook 2013 - Overview

    Outlook 2013 - Overview  EBITDA1: New range €9.2 – 9.3bn (from €9.2 – 9.8bn)  Underlying net income1: New range €2.2 – 2.4bn (from €2.2 – 2.6bn)  Dividend pay-out ratio2: 50-60% Outlook 2013 range narrowed 1. Adjusted for extraordinary effects 2. As percentage of underlying net income 7

  9. Slide 9: Appendix

    Appendix

  10. Slide 10: Restructuring of conventional generation

    Restructuring of conventional generation Alternative solutions Already implemented shutdowns & mothballings GW Redispatch agreement Malzenice  Irsching 4 545 MW Apr 2013 – Mar 2016 Tavazzano 8  Irsching 5 425 MW Apr 2013 – Mar 2016 Staudinger 1 6 Shamrock 1-4 Biomass conversions Provence 4  Ironb

  11. Slide 11: Generation – Conventional portfolio

    Generation – Conventional portfolio Main retirements 2012  Grain 1 & 4 1,300 MW UK CCGT LCPD Shutdown Nov 2012 1,300 MW  Staudinger 3 293 MW Germany Steam Economic Shutdown Dec 2012 1,593 MW  Veltheim 2 & 4 285 MW Germany Steam Economic Shutdown Dec 2012 1,878 MW  Ironbridge 1-2 940 MW UK Steam

  12. Slide 12: Group – Financial highlights

    E.ON Group – Financial highlights First nine months 2013 in € million 2013 2012 +/- % Sales 89,337 93,629 -5 EBITDA1 7,117 8,806 -19 EBIT1 4,441 6,103 -27 Underlying net income1 1,907 4,022 -53 Operating cash flow 5,297 6,827 -22 Investments2 6,328 4,334 +46 Economic net debt -33,104 -35,9344 +2,830

  13. Slide 13: Group – EBITDA and EBIT by segments

    E.ON Group –EBITDA1 and EBIT1 by segments First nine months 2013 in € million EBITDA1 EBIT1 2013 2012 +/- % 2013 2012 +/- % Generation 1,029 1,740 -41 355 1,082 -67 Renewables 987 947 +4 655 647 +1 Global Commodities 860 1,961 -56 765 1,783 -57 Exploration & Production 748 421 +78 377 241 +56 German

  14. Slide 14: Group – From EBITDA to net income (1/2)

    E.ON Group – From EBITDA1 to net income (1/2) First nine months 2013 in € million 2013 2012 +/- % EBITDA1 7,117 8,806 -19 Depreciation/Amortization/Impairments -2,676 -2,703 - EBIT1 4,441 6,103 -27 Economic interest expense (net) -1,312 -1,027 - Net book gains 1,846 190 - Restructuring and cost-mana

  15. Slide 15: Group – From EBITDA to net income (2/2)

    E.ON Group – From EBITDA1 to net income (2/2) First nine months 2013 in € million 2013 2012 +/- % Income/Loss from continuing operations before income taxes 3,578 3,500 +2 Income taxes -659 -521 Income tax rate (in %) 18 15 Income/Loss from continuing operations 2,919 2,979 -2 Income/Loss from disco

  16. Slide 16: EBITDA by unit – Generation

    EBITDA1 by unit – Generation First nine months 2013 in € million 2013 2012 +/- % Nuclear 605 599 +1 Steam 390 970 -60 CCGT 58 238 -76 Other/Consolidation -24 -67 - EBITDA1 1,029 1,740 -41 Main effects (in € bn): Nuclear (+/-0)  Positive: higher volumes in Sweden and Germany and a one-off (+0.1)  N

  17. Slide 17: EBITDA by unit – Renewables

    EBITDA1 by unit – Renewables First nine months 2013 in € million 2013 20122 +/- % Hydro 554 562 -1 Wind, solar and other 433 385 +12 EBITDA1 987 947 +4 Main effects (in € bn): Hydro (+/-0)  Main positive effect: Absence of negative prior year one-off related to a pumped storage plant  Lower own ge

  18. Slide 18: EBITDA by unit – Global Commodities

    EBITDA1 by unit – Global Commodities First nine months 2013 in € million 2013 2012 +/- % Proprietary Trading -34 -66 - Optimization 775 1,375 -44 Infrastructure shareholdings / other / consolidation 119 652 -82 EBITDA1 860 1,961 -56 Main effects (in € bn): Optimization (-0.6)  Mainly driven by abse

  19. Slide 19: EBITDA by unit – Exploration & Production

    EBITDA1 by unit – Exploration & Production First nine months 2013 in € million 2013 2012 +/- % Exploration & Production 748 421 78 Main effects (in € bn): North sea  Higher volumes mainly from Skarv (+0.5)  Increased opex driven by new fields Skarv and Hyme (-0.1) Yushno Russkoje  Lower volumes o

  20. Slide 20: EBITDA by unit – Germany

    EBITDA1 by unit – Germany First nine months 2013 in € million 2013 20122 +/- % Distribution 1,462 1,270 +15 Sales/Other 363 624 -42 EBITDA1 1,825 1,894 -4 Main effects (in € bn): Distribution (+0.2)  Lower controllable cost (+0.1)  Positive effect from segment internal business transfer (+0.2)  E

  21. Slide 21: EBITDA by unit – Other EU countries

    EBITDA1 by unit – Other EU countries First nine months 2013 in € million 2013 2012 +/- % Distribution 1,051 900 +17 Sales 396 379 +4 Other/Consolidation 269 279 -4 EBITDA1 1,716 1,558 +10 Main effects (in € bn): Distribution (+0.2)  Strong improvement in Czech Distribution (+0.2) mainly renewables

  22. Slide 22: EBITDA by unit – Non-EU Countries

    EBITDA1 by unit – Non-EU Countries First nine months 2013 in € million 2013 2012 +/- % Russia 495 523 -5 Other Non-EU Countries -81 -4 - EBITDA1 414 519 -20 Main effects (in € bn): Russia (+/-0)  Increased earnings capacity fees more than offset by provisioning for bad debt and exchange rate effect

  23. Slide 23: Group – Economic net debt

    E.ON Group – Economic net debt First nine months 2013 in € million Sep 30, 2013 Dec 31, 2012 Liquid funds 7,183 6,546 Non-current securities 4,482 4,746 Total liquid funds and non-current securities 11,665 11,292 Financial liabilities to banks and third parties -22,540 -25,014 Financial liabilities

  24. Slide 24: Group – Cash effective investments by unit

    E.ON Group – Cash effective investments by unit First nine months 2013 in € million 2013 2012 +/- % Generation 507 846 -40 Renewables 660 1,113 -41 Global Commodities 118 245 -52 Exploration & Production 351 359 -2 Germany 651 554 +18 Other EU countries 591 619 -5 Non-EU Countries1 3,404 596 +471 Gr

  25. Slide 25: Financial liabilities of the E.ON Group

    Financial liabilities of the E.ON Group First nine months 2013 in € billion Maturity profile (as of 30 Sep 2013)3 30 Sep 2013 31 Dec 2012 Bonds1 18.3 20.7 in EUR 10.4 12.0 5,0 in GBP 4.4 4.5 4,0 in USD 2.2 2.3 3,0 in CHF 0.6 0.9 2,0 in SEK 0.1 0.1 1,0 in JPY 0.4 0.7 0,0 other currencies 0.2 0.2 2013

  26. Slide 26: Group – Economic interest expense (net)

    E.ON Group – Economic interest expense (net) First nine months 2013 in € million 2013 2012* +/- Interest from financial assets/liabilities -720 -851 131 Interest cost from provisions for pensions -114 -99 -15 and similar provisions* Accretion of provisions for retirement obligation -637 -645 8 and o

  27. Slide 27: Oil & Gas production

    Oil & Gas production First nine months 2013 in mboe 2013 +/- % 2012 Skarv 7.0 - 0.0 Njord/Hyme 2.4 0 2.4 Elgin-Franklin 0.4 -28 0.5 Babbage 0.5 -22 0.7 Rita 0.0 - 0.0 Total North Sea 11.9 +167 4.5 Yuzhno Russkoje 27.1 -1 27.5 Total 39.0 +22 32.0 26

  28. Slide 28: Outright power hedging

    Outright power hedging Hedging (as per end of September, 2013) Central Europe: Outright power hedging 2013 ~ 59 €/MWh 2014 ~ 53 €/MWh 2015 ~ 45 €/MWh 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Nordic: Outright power hedging 2013 ~ 44 €/MWh 2014 ~ 43 €/MWh 2015 ~ 38 €/MWh 0% 10% 20% 30% 40% 50% 60%

  29. Slide 29: Investor Relations Contact

    E.ON Investor Relations Contact Dr. Marc Spieker Head of IR T+49 2 11-45 79-3 45 marc.spieker@eon.com Peter Blankenhorn Regions/Sales, SRI, Retail, T +49 2 11-45 79-4 81 Facts & Figures peter.blankenhorn@eon.com François Poullet Generation, Gas T +49 2 11-45 79-3 32 francois.poullet@eon.com Marc Koe

  30. Slide 30: IR - Reporting calendar & important links

    E.ON IR - Reporting calendar & important links Reporting calendar Date Event March 12, 2014 Annual Report 2013 April 30, 2014 2014 Annual Shareholders Meeting May 2, 2014 Dividend Payout May 13, 2014 Interim Report I: January – March 2014 August 13, 2014 Interim Report II: January – June 2014 Novemb

  31. Slide 31: Disclaimer

    Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between

E.ON — 9M 2013 Earnings Presentation on 6ix