Uniper Se · XETR:UN0

Uniper — Q1 2019 Earnings Presentation

37 slides from Uniper's earnings presentation, May 7, 2019

1. Slide 1: Q1 2019 Interim Results

   Q1 2019 Interim Results Christopher Delbrück - CFO May 7, 2019

2. Slide 2: Agenda

   Agenda Q1 2019 Essentials Financial Results Q1 2019 Outlook FY2019 and beyond Appendix 2

3. Slide 3: Q1 2019 Essentials

   Q1 2019 Essentials  Divestments – sales of stakes in OLT1 and Eneva2 Asset rotation progressing  Growth projects – successful participation in first Russian Q1 2019 modernization round Financial results –  Q1-results affected by mild weather and carbon phasing a slow start  Q1 Adj. EBIT at €185m

4. Slide 4: Asset rotation into new earnings streams

   Asset rotation into new earnings streams Divestments New growth projects Scholven Irsching Russia CHP plant OCGT plant modernization Sale of stakes in OLT and Eneva Project pipeline filling up  Divestments at attractive multiples  In implementation mode: Scholven CHP plant and Irsching  OLT Offsh

5. Slide 5: Large asset projects – project update

   Large asset projects – project update Datteln IV hard coal plant Nord Stream 2 gas pipeline Boiler repair on track Pipe laying progressing well  Pre-assembly of new parts at site  About 1,000 km of gas pipeline  About half of boiler already re- laid (twin pipe 2x1,230km) established  Constructio

6. Slide 6: Commodity markets – volatile prices

   Commodity markets – volatile prices Carbon trading prices1 Electricity prices2 Gas prices3 Key messages EUR/t CO2 EUR/MWh EUR/MWh Carbon prices bullish  EU with materially reduced 30 60 27 auction volumes  Fuel switch partially working 25 50 24 Robust electricity prices  Prices trending upwards 2

7. Slide 7: Operating indicators impacted by weather

   Uniper – operating indicators impacted by weather Global Commodities – European Generation – International Power – Key messages Gas storage filling1 Production volume2 Production volume Global Commodities TWh TWh TWh  Winter in North Western Europe +2°C above long- 90 24 -6% 24 term average 75 20 2

8. Slide 8: Agenda

   Agenda Q1 2019 Essentials Financial Results Q1 2019 Outlook FY2019 and beyond Appendix 8

9. Slide 9: Key financials Q1 2019

   Key financials Q1 2019 Adj. EBIT(DA) Operating cash flow, adj. FFO Economic net debt €bn €bn €bn 0.51 0.36 0.62 0.56 2.5 2.6 0.35 0.24 0.19 0.11 Q1 2018 Q1 2019 OCF OCF Adj. FFO Adj. FFO Pro-forma YE 2018 Q1 2019 EBIT EBITDA Q1 2018 Q1 2019 Q1 2018 Q1 2019 Adj. EBIT(DA) down Cash conversion down Net

10. Slide 10: Adjusted EBIT – Q1 2019 down largely due to carbon phasing

    Adjusted EBIT – Q1 2019 down largely due to carbon phasing effect and week gas/LNG business Reconciliation Adj. EBIT Q1 2018 to Q1 2019 Key developments €m  Q1 earnings suffer significantly from two Adj. EBIT 2018 350 effects which will essentially revert until year-end: Carbon phasing  Provisioni

11. Slide 11: Adj. EBIT(DA) to OCF – in line with earnings trend

    Adj. EBIT(DA) to OCF – in line with earnings trend Reconciliation Adj. EBIT Q1 2019 to Operating Cash Flow Q1 2019 €m 97 171 -174 356 1 185 -155 -6 -14 125 105 Adj. EBIT Depreci- Adj. EBITDA Non-cash Provision Changes in Payments OCFbIT Interest Tax OCF Q1 2019 ation and Q1 2019 effective utilizatio

12. Slide 12: Economic net debt broadly unchanged

    Economic net debt broadly unchanged Reconciliation Economic Net Debt YE 2018 vs. Q1 2019 €bn 3.2 0.9 2.6 2.5 0.1 0.1 -0.7 -0.1 0.9 0.9 0.8 0.8 0.9 1.5 0.8 0.7 Economic net Margining Pro-forma OCF Capex Pension Other Economic net debt YE 2018 adjustment Economic net debt Q1 2019 - as reported debt YE

13. Slide 13: Agenda

    Agenda Q1 2019 Essentials Financial Results Q1 2019 Outlook FY2019 and beyond Appendix 13

14. Slide 14: 2019 Outlook – dividend path reiterated

    2019 Outlook – dividend path reiterated Adj. EBIT Dividend Key highlights €bn €bn 0.87 0.85 0.39 European Generation Range 0.33  Lapse of 2018 one-offs 0.55  Improving price / volume outright position  Laps of regulated income as UK capacity market income has not been included in 2019 outlook and

15. Slide 15: Structural EBIT drivers after 2019

    Structural EBIT after 2019 – asset commissioning and power prices €m 1,200 800 400 0 2019 Positives Negatives 2021  UK Capacity Market  Outright based on current  Lapse of other CSA Drivers  Russia FX forwards  Plant closures  Gas Midstream  UK Capacity Market  FX and Other  Datteln IV  Be

16. Slide 16: Trends in earnings and cash now both positive

    Trends in earnings and cash now both positive Phase 1 – Delivery and tightening the ship Phase 2 – Setting the sails for organic growth 1.600 €m Dividend Adj. EBIT FCfO 1.200 Adj. EBIT 800 400 0 2016 2017 2018 2019 2020 2021 beyond 2021  Growth in both earnings and Adj. FFO/ FCfO expected  Dividen

17. Slide 17: Agenda

    Agenda Q1 2019 Essentials Financial Results Q1 2019 Outlook FY2019 and beyond Appendix 17

18. Slide 18: Outright power hedging in Germany and Nordic

    Outright power hedging in Germany and Nordic Outright position – Baseload power price >85% >85% >15% €/MWh >70% >60% >10% 55 45 35 25 15 2019 2020 2021 Hedged price Germany Hedge ratio Germany Hedged price Nordic Hedge ratio Nordic Uniper SE, Presentation Q1 2019, 07 May 2019 18

19. Slide 19: Group EBIT(DA) – modest earnings development in Q1 2019

    Group EBIT(DA) – modest earnings development in Q1 2019 Adj. EBIT development by segment in Q1 2019 Highlights €m European Generation  (-) Intra-year carbon phasing effect -104 350  (-) Lower availability Ringhals & France -78 8 9 185  (-) UK capacity payments Q1 2018 European Global Internationa

20. Slide 20: European Generation – negative intra-year carbon phasing effects

    European Generation – negative intra-year carbon phasing effects Adj. EBIT development by sub-segment in Q1 2019 Highlights €m Nuclear -3 -14  (-) Unplanned unavailability Ringhals 186 -92 5 Fossil 82  (-) Intra-year carbon phasing effect Q1 2018 Hydro Nuclear Fossil Admin/Cons. Q1 2019  (-) Lowe

21. Slide 21: Global Commodities – lapse of positive Freeport hedge effects

    Global Commodities – lapse of positive Freeport hedge effects and lower gas and LNG margins Adj. EBIT development by sub-segment in Q1 2019 Highlights €m Gas -53  (-) Lower gas margin from storage withdrawals -22 -4 134 56 COFL  (-) Lapse of positive effects from Freeport Hedge Q1 2018 Gas COFL Po

22. Slide 22: International Power – positive price, spread and generation volumes effects

    International Power – positive price, spread and generation volumes effects Adj. EBIT development by sub-segment in Q1 2019 Highlights €m Russia  (+) Higher day-ahead market prices 8  (+) Increased generation volumes 89 97  (-) Negative FX effects Q1 2018 Russia Q1 2019 Adj. EBIT(DA) in Q1 2019 E

23. Slide 23: Group – Adjusted EBIT(DA) by segment

    Uniper Group – Adjusted EBIT(DA) by segment Adj. EBITDA €m Q1 2019 Q1 2018 % European Generation 189 294 -35.7 Global Commodities 93 160 -42.1 International Power 121 112 7.8 Administration / Consolidation -47 -55 14.6 Total 356 511 -30.4 Adj. EBIT €m Q1 2019 Q1 2018 % European Generation 82 186 -56

24. Slide 24: Group – Adjusted EBIT(DA) by sub-segment

    Uniper Group – Adjusted EBIT(DA) by sub-segment Adj. EBITDA and EBIT Q1 2019 Q1 2018 Q1 2019 Q1 2018 €m Adj. EBITDA Adj. EBITDA Adj. EBIT Adj. EBIT European Generation Hydro 86 90 72 75 Nuclear 59 73 43 57 Fossil 55 148 -21 71 Other/ Consol. -11 -15 -12 -17 Subtotal 189 294 82 186 Global Commodities

25. Slide 25: Group – Key P&L items at a glance

    Uniper Group – Key P&L items at a glance Key P&L items €m Q1 2019 Q1 2018 Sales 21,830 21,025 Adjusted EBITDA 356 511 Economic depreciation and amortization / reversals -171 -161 Adjusted EBIT 185 350 Non-operating adjustments 780 -225 EBIT 964 125 Net interest income / expense -34 12 Other financia

26. Slide 26: Group – Adjusted EBITDA to net income

    Uniper Group – Adjusted EBITDA to net income Reconciliation Adj. EBITDA Q1 2019 to net income Q1 2019 €m 0 13 -102 758 - 171 768 - 86 356 185 Adj. D&A Adj. Economic MTM Net Other Taxes on non- Net EBITDA EBIT interest, taxes, Derivatives impairments operating Income1 minorities earnings, minorities

27. Slide 27: Group – Economic interest expense (net)

    Uniper Group – Economic interest expense (net) Economic interest expense of the Uniper Group €m Q1 2019 Q1 2018 Interest from financial assets / liabilities 5 1 Interest cost from provisions for pensions and similar provisions -5 -4 Accretion of provisions for retirement and obligation and other pro

28. Slide 28: Group – Non-operating adjustments

    Uniper Group – Non-operating adjustments Non-operating adjustments €m Q1 2019 Q1 2018 Net book gains / losses - - Fair value measurement of derivative financial instruments 758 -4 Restructuring / cost management expenses -5 58 Non-operating impairment charges / reversals - -270 Miscellaneous other n

29. Slide 29: Group – Cash effective investments

    Uniper Group – Cash effective investments Investments by segment €m Q1 2019 Q1 2018 % European Generation 58 65 -10.8 Global Commodities 6 5 20.0 International Power 42 41 2.4 Administration / Consolidation 3 7 -57.1 Total 108 118 -8.5 Investment split – maintenance and growth €m Q1 2019 Q1 2018 % M

30. Slide 30: Group – Net financial position

    Uniper Group – Net financial position Net financial position of the Uniper Group1 €m 31 Mar 2019 31 Dec 2018 Liquid funds 1,168 1,400 Non-current securities 92 83 Receivables from margining 310 698 Financial liabilities 2,315 2,939 Net financial position 745 757 Provisions for pensions and similar o

31. Slide 31: Group – Consolidated balance sheet (1/2)

    Uniper Group – Consolidated balance sheet (1/2) Balance sheet of the Uniper Group – Non-current and current assets €m 31 Mar 2019 31 Dec 2018 Goodwill 1,863 1,816 Intangible assets 759 768 Property, plant and equipment 10,777 10,612 Companies accounted for under the equity method 430 440 Other finan

32. Slide 32: Group – Consolidated balance sheet (2/2)

    Uniper Group – Consolidated balance sheet (2/2) Balance sheet of the Uniper Group – Equity and liabilities €m 31 Mar 2019 31 Dec 2018 Capital stock 622 622 Additional paid-in capital 10,825 10,825 Retained earnings 3,703 3,032 Accumulated other comprehensive income -3,301 -3,531 Equity attributable

33. Slide 33: Consolidated statement of cash flows (1/2)

    Uniper Group – Consolidated statement of cash flows (1/2) Statement of cash flows Uniper Group €m Q1 2019 Q1 2018 Net income / loss 791 130 Depreciation, amortization and impairment of intangibles / property, plant, equipment 174 434 Changes in provisions -167 -65 Changes in deferred taxes 181 30 Ot

34. Slide 34: Consolidated statement of cash flows (2/2)

    Uniper Group – Consolidated statement of cash flows (2/2) Statement of cash flows Uniper Group €m Q1 2019 Q1 2018 Cash provided (used for) by investing activities 332 -724 Payments received / made from changes in capital - 5 Proceeds from financial liabilities 8 311 Repayment of financial liabilitie

35. Slide 35: Financial calendar & further information

    Financial calendar & further information Financial calendar Further information 22 May 2019 https://ir.uniper.energy AGM (Düsseldorf, Congress Center) 08 August 2019 Interim Report January – June 2019 12 November 2019 Quarterly Statement January – September 2019 10 March 2020 Annual Report 2019 07 M

36. Slide 36: Contact your Investor Relations Team

    Uniper – Contact your Investor Relations Team Udo Giegerich Carlo Beck Anna Denisova Executive Vice President Manager Investor Relations Manager Investor Relations Group Finance& Investor Relations +49 211 4579 4402 udo.giegerich@uniper.energy carlo.beck@uniper.energy anna.denisova@uniper.energy Ada

37. Slide 37: Disclaimer

    Disclaimer This document and the presentation to which it relates contains information relating to Uniper SE, ("Uniper" or the "Company") 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

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