E.on Se · XETR:EOAN
E.on — Non-Deal Roadshow (November 2020)
93 slides from E.on's roadshow presentation, Nov 11, 2020
Slide 1: Capital Markets Story November 2020
Capital Markets Story November 2020
Slide 2: Our purpose
Our purpose Energy fuels human progress. At E.ON, we’re doing everything we can to make the future better and to enable our networks and energy solutions to connect people with one another.
Slide 3: E.ON business model fully focused on the energy transition
E.ON business model fully focused on the energy transition Non-core activities Core activities: Customer centric energy infrastructure Up-stream & Power & Gas Supply Power Generation distribution business E.ON fully focusing on the energy transition Employees 2019 Dividend per share 2019 Group EBIT
Slide 4: E.ON's two core businesses
E.ON’s two core businesses Energy Networks Customer Solutions ~€33bn Regulated Asset Base ~53m customers across Europe2 Germany €21.9bn Germany 13.9m Sweden €3.8bn UK 10.5m3 CEE & Turkey €7.6bn1 Other ~28m4 ~74 GW renewables capacity ~30% of adj. EBIT5 from decentral connected to E.ON networks energ
Slide 5: Table of contents
Table of contents 1 9M 2020 Update ………………..……………..……………………………………………………… 6 2 Strategic Update ……………………………...……………………………………………………… 15 3 Financial Update ……………………………...……………………………………………………… 38 4 Appendix …………………………..……………..………………………………………………………… 53
Slide 6: 9M 2020 Update
9M 2020 Update
Slide 7: 9M 2020 results underpin confidence for remainder of the year
9M 2020 results underpin confidence for E.ON 9M 2020 results remainder of the year Highlights Key financials1 €bn ✓ Strong operational performance in Q3 2020 3.0 -43.1 ✓ 2020 EBIT guidance of €3.6 - 3.8bn confirmed 2.7 ✓ Current selective lockdown measures in E.ON countries 1.3 -42.1 1.1 without sig
Slide 8: Almost €60bn of potential EU funding for E.ON markets earmarked for climate
Almost €60bn of potential EU funding for E.ON markets E.ON 9M 2020 results earmarked for climate – already 200 projects identified Funding focus matching E.ON’s core activities in customer centric energy infrastructure1 €58.4bn climate Efficient and decarbonized district heating and cooling system
Slide 9: Covid-19 impact until year end in line with expectations
Covid-19 impact until year end in line with expectations E.ON 9M 2020 results Power demand recovered faster than expected Payment behavior and bad debt in line with expectations; UK remains outlier 110% Germany relative to 20191 Government Change of Day of 100% intervention payment behavior sales 90
Slide 10: Sound EBIT development despite Covid-19 impact and mild weather
Sound EBIT development despite Covid-19 impact and E.ON 9M 2020 results mild weather EBIT1 9M 2020 vs. 9M 2019 pro forma Key drivers €m 9M 2019 pro forma 2,987 –• Covid-19-related lower volumes Energy ~€-120m Covid-19 impact –• Germany: weather-related lower volumes Energy Networks Networks -223 (vo
Slide 11: Adjusted Net Income in line with EBIT development
Adjusted Net Income in line with EBIT development E.ON 9M 2020 results 9M 2020 €m Group EBIT1 2,688 Economic -836 interest result Profit 1,852 before Taxes1 Income taxes -463 Tax rate at ~25% Minorities -300 0.42 EPS (€ per share) Adjusted 1,089 Net Income1 1. Adjusted for non-operating effects 11
Slide 12: Economic Net Debt improved due to strong Operating Cash Flow in Q3 2020
Economic Net Debt (END) improved due to strong E.ON 9M 2020 results Operating Cash Flow in Q3 2020 € bn -8.8 -8.8 -8.0 Asset Retirement Obligations (ARO) -8.6 Pension provisions Net financial position -24.6 -26.2 -1.0 +2.4 +0.2 -0.6 -42.1 -43.1 END OCF Net Investments Pensions2 Other (incl. AROs) EN
Slide 13: Group outlook 2020 and mid-term delivery plan confirmed
Group outlook 2020 and mid-term delivery plan E.ON 9M 2020 results confirmed Group Guidance 2020 2020 – 2022 delivery plan EBITDA1: €6.8-7.0bn ✓ EBIT1: €3.6-3.8bn ✓ Dividend per share (DPS) growth up to 5% p.a. ANI1: €1.5-1.7bn ✓ Capex2: ~€4.2bn ✓ EBIT1 growth Group EPS1 growth Group 11-13% CAGR 17-
Slide 14: Guidance overview
Guidance overview E.ON 9M 2020 results € bn 2019 pro forma3 2020 2020-2022 EBITDA1 6.904 6.8-7.0 5-6% CAGR Energy Networks 5.364 5.0-5.2 Customer Solutions 1.126 1.0-1.2 Non-Core 0.617 0.8-1.0 Corporate Functions & Other -0.203 ~-0.3 EBIT1 4.065 3.6-3.8 11-13% CAGR Energy Networks 3.499 3.1-3.3 Cust
Slide 15: Strategic Update
Strategic Update
Slide 16: Why invest in E.ON?
Why invest in E.ON? 1 We commit to a sustainable dividend per share growth of up to 5% annually until 2022 and further growth beyond Dividend growth 2 We are the green investment opportunity and we enable the energy transition Customer centric energy infrastructure 3 We focus on customer centric ene
Slide 17: Why invest in E.ON?
Why invest in E.ON? Dividend growth Customer centric energy infrastructure Sustainability Performance 17
Slide 18: Net zero is the new normal – E.ON is driving carbon reduction
Net zero is the new normal – E.ON is driving carbon reduction Global challenges E.ON’s contribution Focus SDGs5 IPCC1 long term goal to limit global Avoided emissions together with our clients warming to 1.5°C 2019: >100m tons CO2 German greenhouse gas emissions to be cut One out of five renewable b
Slide 19: Decarbonization means deep electrification
Decarbonization means deep electrification European1 energy demand 2015 vs. 2050… … with huge impact on energy infrastructure TWh Increase of electricity demand (+90%) ~12,500 • Deep electrification of different sectors and -40% ~7,000 decentral generation creates the need for substantial grid inves
Slide 20: Decentralization means digitalization and efficiency potential
Decentralization means digitalization and efficiency potential The complexity within DSOs is increasing ... Decentralization drives system complexity E.ON provides digital solutions to capitalize on it Energy Management System Regional Energy Market EnergieMonitor & Klima-Navi Customer Smart Home Tr
Slide 21: Why invest in E.ON?
Why invest in E.ON? Dividend growth Customer centric energy infrastructure Sustainability Performance 21
Slide 22: E.ON transformed into Europe's energy infrastructure powerhouse
E.ON transformed into Europe’s energy infrastructure powerhouse E.ON’s strategy implementation accelerated by innogy takeover Long-term 2x 2x ~80% Integration ~€740m energy infrastructure Regulated Asset Base1 customer accounts regulated earnings bundling of synergies delivery of annual net substitu
Slide 23: Infrastructure is at the heart of E.ON's capital allocation
Infrastructure is at the heart of E.ON’s capital allocation ~10% Energy Retail Customer Solutions1 retail2 investments4 Decentral energy infrastructure3 ~90% Infrastructure Energy Networks1 Regulated energy networks investments4 1. IFRS segments used in external reporting 2. Includes Energy Sales an
Slide 24: Energy transition driving multi-decade investment opportunities
Energy transition driving multi-decade investment opportunities Industry investments in German power distribution networks excluding Green Deal upside € bn Drivers 6.7 4.7 2.5 2010 2009 2020 2030 2050 Source: Historic values: Bundesnetzagentur Monitoringbericht 2019. Future outlook: dena-Leitstudie
Slide 25: E.ON is the leading energy network company in Northern and Central Europe
E.ON is the leading energy network company in Northern and Central Europe E.ON Regulated Asset Base (RAB) – regional split € bn Total RAB1, 2 33.2 Sweden Germany CEE2 &Turkey2 Power RAB Gas RAB 3.8 21.9 7.6 1. RAB is the value of all distribution assets determined by the regulator. In general, RABs
Slide 26: Long-term RAB growth with further upside potential
Long-term RAB growth with further upside potential E.ON Regulated Asset Base1 growth € bn Power 33.2 4-5% • Multi-decade growth potential CAGR2 stemming from mega-trends Gas Power 27.7 • Optimizing our existing gas asset base with limited investment needs • Future growth option from hydrogen Gas 5.5
Slide 27: Gas distribution with stable earnings and limited capex
Gas distribution with stable earnings and limited capex Gas activities closely coupled with power business Limited capex spent on gas ~90% of German gas network business is ~5% of Group capex is spent 1 linked to electricity concessions on our gas business The role of gas in German heating market2 F
Slide 28: Four years of regulatory stability
Four years of regulatory stability Regulatory periods per country 2020 2021 2022 2023 2024 2025 2026 2027 2028 Germany (Gas) Slovakia1 Turkey Poland Czech Republic1 Hungary Romania 70%2 of the Energy Networks Germany (Power) EBIT is highly visible until 2024 Sweden 1. Length of upcoming regulatory p
Slide 29: Exemplary earnings components beyond allowed return
Exemplary earnings components beyond allowed return Opex efficiencies Regulatory cost Actual opex vs. allowed opex recognition Total Allowed RAB growth = regulated return Capex efficiencies Outperformance of standard Special incentives E.g. reliability and earnings prices set by regulator network lo
Slide 30: Leveraging strong partnerships and core competencies to drive additional businesses
Leveraging strong partnerships and core competencies to drive additional businesses Long-term partnerships with municipalities … … create a competitive edge for additional businesses Technical grid services Smart meters Non-concession- Concession- based RAB based RAB e.g. O&M e.g. installation ~1/3
Slide 31: Earnings growth from reducing carbon emissions via decentral energy infrastructure
Earnings growth from reducing carbon emissions via decentral energy infrastructure Low temperature heating Large B2B solutions/district and cooling grids heating grids Top 2 E.g. ectogrid: zero emission On-site generation solutions energy hybrid system with up Average contract duration: 15-40 years
Slide 32: Customer numbers B2B & B2C
Customer numbers B2B & B2C E.ON 9M 2020 results Stable customer base (m)1 Thereof: electricity customers (m)1 Customer accounts -0.2% -0.2% 41.5 41.4 52.7 52.6 11.6 11.6 6.6 6.4 2.6 2.5 13.9 13.9 10.8 10.9 9.8 10.0 10.9 10.5 FY 2019 9M 2020 4.6 4.6 Thereof: gas customers (m)1 11.2 +0.0% 11.2 13.5 13
Slide 33: Why invest in E.ON?
Why invest in E.ON? Dividend growth Customer centric energy infrastructure Sustainability Performance 33
Slide 34: Performance culture is part of our DNA
Performance culture is part of our DNA Transaction related synergies npower & E.ON customers migrated Operational excellence onto new platform E.ONnext ✓ Synergy delivery on track EBIT1 development Continuous improvement GBP m ~100m ✓ 5% achieved in 2019 Digitalization & innovation 2019 2022 2023 >2
Slide 35: Synergy delivery fully on track
Synergy delivery fully on track Estimated transaction related net synergies1 of ~€740m Synergy delivery by division ~100% 27% ~45% 53% ~20% 5% ✓ 20% 2019 2020 2021 2022 1. Start of voluntary 1. Full integration of 1. Synergies in Energy Customer Solutions leave program headquarter Networks Energy Ne
Slide 36: Renewal of IT architecture to drive operational excellence in Customer Solutions
Renewal of IT architecture to drive operational excellence in Customer Solutions Germany: Substantial ramp up of contracts to digital UK: npower customer migration started in July 2020 as platform scheduled million contracts All German million contracts contracts migrated1 All E.ON UK contracts migr
Slide 37: E.ON's performance culture adds sustainable value to businesses and customers
E.ON’s performance culture adds sustainable value to businesses and customers German power network efficiency scores Sweden power network efficiency scores >€600m additional revenues 100% in regulatory period1 E.ON grids 100% Very efficient 85% 95% Industry average 94% Efficient 70% 8/9 E.ON grids 1
Slide 38: Financial Update
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Slide 39: We commit to annually grow the dividend per share by up to 5%
We commit to annually grow the dividend per share by up to 5% Dividend per share (DPS) €0.43 €0.46 €0.30 €0.21 Growth beyond 2016 ✓ 2017 ✓ 2018 ✓ 2019 ✓ 2020 2021 2022 39
Slide 40: E.ON's 2020-2022 delivery plan confirmed
E.ON’s 2020-2022 delivery plan confirmed Dividend per share (DPS) growth up to 5% p.a. Group EBIT1 growth Group EPS growth 1 11-13% CAGR 17-22% CAGR Average cash conversion Capital structure with strong rate2of 95% BBB/Baa rating 1. Adjusted for non-operating effects; CAGR’s technically adjusted to
Slide 41: Strict capital allocation framework leads to sound investment profile
Strict capital allocation framework leads to sound investment profile Sustainability focus Return framework Capital allocation in line with business priorities Sustainability criteria: Hurdle rate composition: Indicative hurdle rates2: ✓ Enable energy transition WACC (country & technology specific)
Slide 42: E.ON allocates ~75% of investments to Energy Networks
E.ON allocates ~75% of investments to Energy Networks Investments 2020 Investments 2020-2022 € bn € bn ~90%2 ~90%2 infrastructure infrastructure ~4.21 ~131 Energy Networks Customer Solutions Other3 1. Cash effective investments including Corporate Functions & Other and Non-Core, assuming no further
Slide 43: Investments with strong focus on infrastructure
Investments with strong focus on infrastructure Energy Networks 2020-2022 Customer Solutions 2020-2022 € bn € bn 100% ~65% ~9.71 infrastructure ~2.71 infrastructure B2B Solutions IT driven retail investments City Energy Solutions New Solutions Power Gas Other UK smart meter roll-out E-mobility 1. Ca
Slide 44: Attractive Group earnings growth
Attractive Group earnings growth EBITDA1 EBIT1 Outlook1 € bn € bn CAGR 0.6 6.9 1.1 6.8-7.0 4.1 5-6% 3.6-3.8 EBITDA 0.4 11-13% 0.5 5.4 3.5 EBIT 2019 2020 2019 2020 2020-2022 pro forma pro forma Guidance: Energy Networks Customer Solutions Corporate Functions & Other Non-Core 1. Adjusted for non opera
Slide 45: Mid-term growth in Energy Networks earnings backed by organic RAB growth
Mid-term growth in Energy Networks earnings backed by organic RAB growth EBITDA1 EBIT1 Outlook1 € bn € bn 5.4 5.0-5.2 1.0 3.5 0.7 3.1-3.3 0.6 0.5 3.7 2.4 2019 2020 2019 2020 2020-2022 pro forma pro forma Guidance: Germany Sweden CEE & Turkey 1. Adjusted for non operating effects; assuming no further
Slide 46: Customer Solutions earnings growth driven by digitalization and UK turnaround
Customer Solutions earnings growth driven by digitalization and UK turnaround EBITDA1,2 EBIT1 Outlook1 € bn € bn 1.0-1.2 1.1 0.5 0.4-0.6 0.3 0.1 0.2 Decentral energy 0.1 infrastructure 0.6 ~30% 0.5 2019 2020 -0.2 2020 2020-2022 pro forma 2019 pro forma Guidance: Germany UK Benelux Other 1. Adjusted
Slide 47: Strong EPS growth of 17-22%
Strong EPS growth of 17-22% Adjusted Net Income1 Earnings per share1 Outlook1 € bn € CAGR 1.5-1.7 1.6 0.60 0.58-0.65 Payout 17-22% ratio 77% 2019 2020 2019 2020 2020-2022 pro forma pro forma 1. Adjusted for non-operating effects; assuming no further severe lockdowns in our major markets 47
Slide 48: Significant refinancing benefits over the next three years
Significant refinancing benefits over the next three years Bond maturities as of end 9M 20201,2 € bn Refinancing benefits 17.1 Volume until 2022 of up to % Coupon 1.7 ~€200m3 1.5 0.4% 1.3 1.1 5.7% 0.0% 1.1 5.9% 5.6% 0.9 0.8 0.6 0.0% 3.9% 0.6 0.5 6.5% 0.4% 3.2% 0.8% 0.3 0.0% 3.0% 0.0% 3.2% 6.5% 5.5%
Slide 49: Green financing is an integral part of our funding strategy
Green financing is an integral part of our funding strategy Total investments 2020-2022 To finance our investments we have tapped the € bn green bond market … 95% €4.6bn outstanding energy transition investments2 … and intend to issue more: 131 ~€1bn p.a. Revolving credit facility linked to sustaina
Slide 50: E.ON's approach to manage Economic Net Debt
E.ON’s approach to manage Economic Net Debt Economic Net Debt € bn 9M 2020 “Beat the • 0% real discount rate floor reached: only upside -8.8 provisions” • Further upside: outperforming provisions by operational excellence “Focus on the • UK pension obligations largely funded -8.6 long end” • Sensiti
Slide 51: Rating target re-confirmed, positive END effects above initial expectations
Rating target re-confirmed, positive END effects above initial expectations Leverage factor1 Selected END effects 2020-20223 • 95% Cash conversion rate4 Strong BBB/Baa rating target ↑• Working Capital optimization program & 5 ARO reduction ~+€1.5bn (before: ~+€1bn) 5.6x (ARO reduction: ~€200m alread
Slide 52: Dividend commitment fully in line with deleveraging
Dividend commitment fully in line with deleveraging EPS1 above DPS growth… …lowers payout ratio… … allowing deleveraging and sustainable dividend growth 5.6x Strong BBB/Baa rating target 77% Payout ratio ~5x 2019 2020 2021 2022 2019 2022 2019 2022 pro forma pro forma pro forma 1. Adjusted for non op
Slide 53: Appendix
Appendix |
Slide 54: E.ON new segmentation from 2020 onwards
E.ON new segmentation from 2020 onwards IFRS reporting divisions Energy Networks Customer Solutions Corporate Non-Core Functions & DE SWE CEE1 & TR Benelux2 DE UK Other3 PE4 TR Gen5 Other Power grid City Energy Energy Solutions sales and Gas grid (CES) services New Additional businesses B2B Solution
Slide 55: E.ON's strong ESG profile
E.ON’s strong ESG profile Environmental Social Governance Climate neutrality by 2040 Variety of nationalities, cultures, generations and genders Supervisory (Scope 1 & 2) & by 2050 Diversity Experienced, diverse and independent in management & workforce Board (including Scope 3)1 Avoided emission to
Slide 56: E.ON's sustainability awards, ratings and rankings
E.ON’s sustainability awards, ratings and rankings CDP Score: B Text 1 Result: AA Text 1 Sector Average: C Overall ESG Score: 3.2 Overall ESG Score = 81 (Leader Group) Text 1 Text 1 Sub Sector Average Multiutilities: 2.8 Relative Position 11 out of 192 Industry Average Utilities: 2.5 E.ON is index m
Slide 57: Building blocks of allowed revenues in Germany
Building blocks of allowed revenues in Germany Schematic illustration for 2019 (power & gas) € bn ~21.2 Gas ~1.1 (New) Totex indexed to Gas ~3.4 CPI and subject to Thereof: Thereof: (Old) general and individual ~4.0 power ~8.3 power efficieny targets ~0.7 gas ~1.2 gas Power ~10.2 (New) ~9.5 ~4.7 ~6.
Slide 58: Energy Networks Germany - Earnings components
Energy Networks Germany - Earnings components Illustrative average EBITDA1 split (2019-2020) Illustrative average EBIT1 split (2019-2020) 0% 0% ~5% Regulated return & depreciation2 ~5% ~10% Operational efficiency ~5% Other infrastructure business3 ~60% ~10% Additional network-related business4 ~50%
Slide 59: Continuous improvement in operative performance increases security of supply
Continuous improvement in operative performance increases security of supply SAIDI1,2 2014 vs. 2019 Power losses2 2014 vs. 2019 Germany Germany 48.0 -40% 4.4 -14% 3.8 29.0 2014 2019 2014 2019 Sweden Sweden 144.0 +18%3 170.0 3.9 -23% 3.0 2014 2019 2014 2019 CEE4 CEE4 336.0 -36% 9.1 -22% 7.1 214.0 201
Slide 60: RAB growth further supported by local drivers
RAB growth further supported by local drivers Power RAB development Local drivers € bn 3-5% CAGR • Renewable connections Germany1 17.3 • Replacement • Digitalization 2019 2022 3-5% CAGR • Storm proofing Sweden2 3.8 • Renewable connections • Demand growth 2019 2022 4-6% CAGR • New connections of B2B
Slide 61: Network charges are only a small portion of German power price
Network charges are only a small portion of German power price Composition of average electricity price Decarbonization currently not optimally supported, electricity disadvantaged • Renewables surcharge to be borne by more customers Electricity Renewable • Carbon minimum price or tax procurement, s
Slide 62: EU financing successful for major growth projects across Europe
EU financing successful for major growth projects across Europe with up to ~€250 m funding grants • More than €500m investments planned ACON2,3 1.0/ACON 2.0 • Around 50% approved in EU grants • Increasing cross-border power distribution capacity and • All projects included in EU PCI1 list grid moder
Slide 63: City Energy Solutions selected projects
City Energy Solutions selected projects Key figures Project examples Countries with Högbytorp CES projects • 50% increase of renewable/recovered energy >750k customers • 99% efficiency of CHP • 659 GWh total output Hanseviertel Lüneburg ~5k installations • 8,100t CO2 savings per year under managemen
Slide 64: Production rights for PreussenElektra already transferred - Terms challenged
24 TWh of production rights for PreussenElektra already transferred - Terms challenged Nuclear power plant Krümmel1 88 TWh of production rights (before transfer) 24 TWh ~€27.8/MWh preliminary price PreussenElektra Transferred production rights 13 TWh 6 TWh 5 TWh Grohnde plant Isar II plant Brokdorf
Slide 65: Regulated earnings split
Regulated earnings split share EBITDA 20201 € bn regulated • Regulated or quasi Earnings share of ~75% ~75% (Quasi-)regulated earnings strong • Network operations in countries with 6.8 – 7.0 regulatory frameworks • Customer Solutions and Energy Networks Energy Networks Customer Solutions Other2 dive
Slide 66: Past delivery on guidance
Past delivery on guidance EBIT1 vs. guidance Adjusted Net Income1 vs. guidance € bn € bn 3.1 3.1 3.0 3.2 0.9 1.4 1.5 1.5 2016 2017 2018 2019 2016 2017 2018 2019 reported reported Guidance range 1. Adjusted for non operating effects 66
Slide 67: Networks Capex breakdown 2020-2022
Networks Capex breakdown 2020-2022 Germany Sweden CEE € bn € bn € bn 6.61 1.11 2.01 ~50% ~50% ~60% investment in expansion investment in expansion investment in expansion Maintenance Grid expansion Other 1. Cash effective investments; assuming no further severe lockdowns in our major markets 67
Slide 68: Maintaining a substantial liquidity buffer is a cornerstone of risk management
Maintaining a substantial liquidity buffer is a cornerstone of E.ON’s risk management • €2.6bn in cash & equivalents Key takeaways Large volume of • €1.1bn in short-term securities liquidity1 • €2.0bn of non-current securities • Extensive liquidity buffer • Back-up RCF undrawn and fully • Early de-r
Slide 69: Benchmark bonds of E.ON Group as of Nov. 11, 2020
Benchmark bonds of E.ON Group as of Nov. 11, 20201 Volume in millions in Volume in millions in Issuer respective currency Coupon Maturity Issuer respective currency Coupon Maturity E.ON International Finance B.V. 570 GBP 6.500% Apr-21 E.ON SE 1,000 EUR 0.375% Sep-27 innogy Finance B.V. 1,000 EUR 6.5
Slide 70: Funding strategy
Funding strategy Volumes €2-4bn p.a. • Bond refinancings • Cash utilization of asset retirement obligations Tenors 3-12 years preferred • Optimize maturity profile & interest costs • Redemptions on any single day capped at €1bn Currencies EUR preferred • Predominantly Euro-based asset base • Regular
Slide 71: innogy bond transfer approaching 100%
innogy bond transfer approaching 100% Currency Principle (m) Maturity %-Transfer Offer of bond transfer ✓ EUR 468 2037 99% Exchange offers JPY 20,000 2040 100% settled • Offer to innogy bondholders GBP 570 2021 100% to switch to E.ON struck on GBP 500 2022 100% highly positive investor EUR 750 2022
Slide 72: E.ON's Green Bond Framework
E.ON’s Green Bond Framework Evaluate & Management External Use of proceeds Reporting + select projects of proceeds verification • Finance and/or • Project selection based • E.ON will strive to • Allocation and impact refinance eligible green on eligibility criteria maintain a portfolio reporting aft
Slide 73: PreussenElektra – Further ambition to 'beat the provisions'
PreussenElektra – Further ambition to ‘beat the provisions’ Solid track-record already until 2019 Nuclear Asset Retirement Obligations1 • Bundling of decommissioning activities € bn 2016 2017 2018 2019 • Procurement successes by ‘convoy approach’ • Operational progress according to plan Further opti
Slide 74: 9M 2020 Results Financial Appendix
9M 2020 Results Financial Appendix
Slide 75: Segment outlook 2020 remaining year
Segment outlook 2020 remaining year E.ON 9M 2020 results EBIT1 key drivers Q4 2020 Energy Networks Customer Solutions Non-Core Germany & CEE: All regions: PreussenElektra: •– Covid-19-related lower volumes –– • Covid-19-impact •+ Higher hedged prices Germany: – • Higher depreciation from purchase of
Slide 76: Financial highlights
Financial highlights E.ON 9M 2020 results 9M 2019 €m 9M 2020 % YoY pro forma Sales - 43,314 - EBITDA1 5,004 4,966 -1 EBIT1 2,987 2,688 -10 Adjusted Net Income 1 1,286 1,089 -15 OCFbIT 2,860 4,063 +42 Investments 2,825 2,374 -16 Economic Net Debt² -38,895 -42,092 -8 1. Adjusted for non-operating effe
Slide 77: Temporary Economic Net Debt increase largely due to squeeze-out and pensions
Temporary Economic Net Debt (END) increase largely due E.ON 9M 2020 results to squeeze-out and pensions € bn -8.9 -8.8 -7.2 Asset Retirement Obligations (ARO) -8.6 Pension provisions Net financial position -23.4 -24.7 +3.5 +0.5 +1.1 -2.6 -39.4 -38.9 -1.6 -1.5 -1.4 -0.7 -42.1 END Transaction END OCF
Slide 78: Cash Conversion Rate in 9M 2020 at 87%
Cash Conversion Rate1 in 9M 2020 at 87% E.ON 9M 2020 results € bn 87% CCR1 5.0 0.1 4.1 0.2 3.7 -1.0 -0.6 1.3 -2.4 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. Adjus
Slide 79: Divisions: Energy Networks
Divisions: Energy Networks E.ON 9M 2020 results EBIT1 Drivers €m –• Covid-19-related lower volumes CEE & Turkey 2,554 455 –9% 2,331 Germany –• Weather-related lower volumes 500 Sweden 394 275 Sweden –• Lower WACC in new regulatory period Germany 1,705 1,556 –• Higher transmission charges +• Strong o
Slide 80: Divisions: Customer Solutions
Divisions: Customer Solutions E.ON 9M 2020 results EBIT1 Drivers €m –• Weather impact on volumes 418 -10% 378 All –• Covid-19: sell-back of volumes (B2B) & bad debt Germany 312 296 UK +• Restructuring benefits Benelux Other 89 65 45 39 UK -48 -2 9M 2019 9M 2020 pro forma €m Germany Benelux UK Other
Slide 81: Non-Core business
Non-Core business E.ON 9M 2020 results EBIT1 Drivers €m +• Higher achieved power prices -9% +• Higher production volumes 326 298 Preussen Elektra –• Higher depreciation from purchase of production rights Preussen 256 Elektra 271 –• Transfer of minority stakes2 to RWE Generation Turkey –• One-off eff
Slide 82: Adjusted Net Income
Adjusted Net Income E.ON 9M 2020 results 9M 2019 €m 9M 2020 % YoY pro forma EBITDA1 5,004 4,966 -1 Depreciation/amortization -2,017 -2,278 -13 1 EBIT 2,987 2,688 -10 Economic interest expense (net) -874 -836 +4 1 EBT 2,113 1,852 -12 1 Income Taxes on EBT -553 -463 +16 1 % of EBT -26% -25% - Non-cont
Slide 83: Reconciliation of EBIT to IFRS Net Income
Reconciliation of EBIT to E.ON 9M 2020 results IFRS Net Income €m 9M 2019 9M 2020 % YoY 1 EBITDA 3,742 4,966 +33 Depreciation/Amortization/Impairments -1,534 -2,278 -49 1 EBIT 2,208 2,688 +22 Reclassified businesses of Renewables -300 0 - Interest result -583 -535 +8 Net book gains -32 218 +781 Rest
Slide 84: Cash-effective investments
Cash-effective investments1 E.ON 9M 2020 results 9M 2019 €m 9M 2020 % YoY pro forma Energy Networks 1,883 2,039 +8 Customer Solutions 707 500 -29 Corporate Functions & Other 87 -323 -471 Consolidation 0 -1 - Non-Core 148 159 +7 Investments 2,825 2,374 -16 1. Pro forma figures 9M 2019, not audited 84
Slide 85: Economic Net Debt
Economic Net Debt1 E.ON 9M 2020 results €m 31 Dec 2019 30 Sep 2020 Liquid funds 3,602 4,512 Non-current securities 2,354 2,005 Financial liabilities -28,947 -31,380 Adjustment FX hedging² 166 215 Net Financial Position -22,825 -24,648 Provisions for pensions -7,201 -8,616 Asset retirement obligation
Slide 86: Economic interest expense (net)
Economic interest expense (net)2 E.ON 9M 2020 results 9M 2019 Difference €m 9M 2020 pro forma (in € m) Interest from financial assets/liabilities -756 -789 -33 Interest cost from provisions for pensions and similar provisions -95 -73 +22 Accretion of provisions for retirement obligation and similar
Slide 87: E.ON's Proforma Financials 2019
E.ON’s Proforma Financials 2019
Slide 88: E.ON's Proforma Financials — 2019
E.ON’s Proforma Financials1 — 2019 Adjusted EBITDA1 Adjusted EBIT1 €m FY 20192 €m FY 20192 Energy Networks 5,364 Energy Networks 3,499 Germany 3,721 Germany 2,358 Sweden 692 Sweden 539 CEE & Turkey 951 CEE & Turkey 602 Customer Solutions 1,126 Customer Solutions 541 Benelux 192 Benelux 132 Germany 6
Slide 89: E.ON's Proforma Financials — 2019
E.ON’s Proforma Financials1 — 2019 OCFbIT Investments (cash-effective) €m FY 20192 €m FY 20192 Energy Networks 4,255 Energy Networks 3,149 Germany 2,455 Germany 2,254 Sweden 718 Sweden 313 CEE & Turkey 1,082 CEE & Turkey 582 Customer Solutions 378 Customer Solutions 1,008 Benelux 84 Benelux 90 Germa
Slide 90: E.ON's Proforma Financials — 2019
E.ON’s Proforma Financials1 — 2019 At-equity contribution to adjusted EBITDA/EBIT1 E.ON Financials P&L €m FY 20192 €m FY 20192 Energy Networks 349 Adjusted EBITDA1 6,904 Germany 219 Depreciation/amortization recognized in Adjusted Sweden 0 -2,839 EBIT CEE & Turkey 130 Adjusted EBIT1 4,065 Customer S
Slide 91: Financial calendar & important links
Financial calendar & important links Financial calendar March 24, 2021 Annual Report 2020 May 11, 2021 Quarterly Statement: January – March 2021 May 19, 2021 2021 Annual Shareholder Meeting August 11, 2021 Half-Year Financial Report: January – June 2021 November 10, 2021 Quarterly Statement: January
Slide 92: E.ON's Investor Relations Team
E.ON‘s Investor Relations Team Analysts & Institutional Investors Private Shareholders Verena Nicolaus-Kronenberg Andreas Thielen Sandra Schuck Head of Investor Relations Manager Investor Relations Manager Investor Relations verena.nicolaus-kronenberg@eon.com andreas.thielen@eon.com sandra.schuck@eo
Slide 93: Disclaimer
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