Slide 1: Q1 2016 results
Focused Disciplined Striving Q1 2016 results 11 May 2016
Slide 2: Q1 2016 dominated by one-off effect
Q1 2016 dominated by one-off effect Q1 2016 Summary EBITDA 1 Important spin-off milestones achieved €2.8bn €3.1bn FY16 outlook confirmed Q1 2015 Q1 2016 EBITDA & UNI dominated by Gazprom agreement UNI 1 High cash conversion: 92% €1.3bn €1.0bn Economic net debt reduced to €27bn Q1 2015 Q1 2016 1 1. A
Slide 3: German nuclear – E.ON stays ready for joint solution despite high premium
German nuclear – E.ON stays ready for joint solution despite high premium Final KFK1 suggestions published E.ON’s perspective German state to become operationally and Scope of solution with state taking over financially accountable for all nuclear responsibility for storage related matters is wa
Slide 4: KFK suggestions qualify as special situation
KFK suggestions qualify as special situation Catalyst Measures Decision criteria Opex cuts Deterioration in Capex efficiency Committed business environment Asset rotation Selective asset EPS impact Additional deterioration disposals Cash generation in financial environment Dividend pol
Slide 5: Spin off update – Key milestones achieved
Spin off update – Key milestones achieved 1 Jan 2016 E.ON and Uniper 26 Apr 2016 organizational separate Capital market day Q2 2016 Carve-out Equity story, incl. strategy, KPIs, Roadshows 8 Jun 2016 effective dividend policy, Uniper to start Employees capital structure H2 2016 prospectus A
Slide 6: EBITDA: disposals and commodity price effects offset by Gazprom agreement
EBITDA: disposals and commodity price effects offset by Gazprom agreement Q1 2016 vs. Q1 2015 EBITDA1 Q1 2015 2.8 Global Commodities 0.6 New Capacity 0.1 Other 0.2 +0.2 (8%) E.ON Russia -0.1 Power Portfolio -0.3 Disposals -0.3 EBITDA1 Q1 2016 3.1 in € bn 5 1. Adjusted for extraordinary effects
Slide 7: Underlying net income
Underlying net income €m Q1 2015 Q1 2016 % YoY EBITDA 1 2,844 3,071 8 Depreciation/amortization recognized in EBIT -793 -646 19 EBIT 1 2,051 2,425 18 Economic interest expense (net) -523 -570 -9 EBT 1 1,528 1,855 21 Income taxes on EBT 1 -400 -434 -9 % of EBT 1 26% 23% - Non-controlling interests -1
Slide 8: END declined by €1bn despite pension provision increase
END declined by €1bn despite pension provision increase Q1 2016 (€ bn) END YE END Q1 Provisions NFP 2015 OCF Inv B&S Dividend Divest Pensions Others 2016 NFP Provisions Pensions: Pensions: -4.2 bn -5.7 bn ARO: ARO: -18.9 bn -19.0 bn Cash Balance: 2.1 bn -23.1 2,8 0,3 0,0 -24.7 -0.7 -0.0 0.2 -1.5 -26
Slide 9: 2016 Outlook confirmed
2016 Outlook confirmed E.ON Going Concern €6.4-6.9bn €1.5-1.9bn EBITDA UNI Future E.ON 1 €4.6-5.0bn €0.6-1.0bn EBITDA UNI 8 1. In transition year 2016 including at-equity contribution of Uniper on an underlying basis after assumed spin- off & deconsolidation; as of 2017 without Uniper contribution
Slide 10: Backup
Backup 9
Slide 11: Financial highlights
Financial highlights €m Q1 2015 Q1 2016 % YoY Sales 30,993 27,135 -12 EBITDA 1 2,844 3,071 8 1 EBIT 2,051 2,425 18 Underlying net income 1,013 1,314 30 2 Operating cash flow 2,490 2,838 14 Investments 668 697 4 3 Economic net debt -27,714 -26,580 -4 10 1. Adjusted for extraordinary effects 2. OCF fr
Slide 12: EBITDA and EBIT by unit
EBITDA and EBIT by unit 1 1 €m EBITDA EBIT Q1 2015 Q1 2016 % YoY Q1 2015 Q1 2016 % YoY Generation 749 529 -29 548 379 -31 Renewables 385 345 -10 300 238 -21 Global Commodities 167 754 351 143 730 410 Exploration & Production 277 50 -82 129 41 -68 Germany 637 641 1 480 475 -1 Other EU Countries 701 8
Slide 13: From EBITDA to Net Income
From EBITDA to Net Income €m Q1 2015 Q1 2016 % YoY EBITDA 1 2,844 3,071 8 Depreciation/Amortization/Impairments -793 -646 -19 EBIT 1 2,051 2,425 18 Economic interest expense (net) -523 -570 9 Net book gains 245 5 -98 Restructuring -50 -55 10 Mark-to-market valuation of derivatives -74 55 -174 Impair
Slide 14: Generation
Generation €m EBITDA 1 EBIT 1 Q1 2015 Q1 2016 % YoY Q1 2015 Q1 2016 % YoY Nuclear 507 332 -35 388 295 -24 Steam (incl. Biomass) 215 172 -20 113 78 -31 CCGT 6 18 200 -23 -0 -99 Other/Consolidation 21 7 -67 70 6 -91 Total 749 529 -29 548 379 -31 Main EBITDA effects (in €bn) Nuclear (-0.2) Driven pre
Slide 15: Renewables
Renewables €m EBITDA 1 EBIT 1 Q1 2015 Q1 2016 % YoY Q1 2015 Q1 2016 % YoY Hydro 201 84 -58 188 71 -62 Wind/Solar/Other 184 261 42 112 167 49 Total 385 345 -10 300 238 -21 Main EBITDA effects (in €bn) Hydro (-0.1) Lower prices in all markets Disposal of Spanish & Italian hydro assets Wind/Solar/O
Slide 16: Global Commodities
Global Commodities 1 1 €m EBITDA EBIT Q1 2015 Q1 2016 % YoY Q1 2015 Q1 2016 % YoY Power & Gas 108 723 569 86 701 715 Coal, Oil, Freight & LNG 20 -8 -140 20 -8 -140 Infrastructure/Other 39 39 0 37 37 0 Total 167 754 352 143 730 410 Main EBITDA effects (in €bn) Power and Gas (+0.6) One-off provision
Slide 17: Exploration & Production
Exploration & Production €m EBITDA 1 EBIT 1 Q1 2015 Q1 2016 % YoY Q1 2015 Q1 2016 % YoY Total 277 50 -82 129 41 -68 Main EBITDA effects (in €bn) North Sea fields (-0.2) Disposal of Norway E&P activities Yuzhno Russkoje (-0.1) Volume effect (make-up year) Bafa price decline 16 1. Adjusted for e
Slide 18: Germany
Germany €m EBITDA 1 EBIT 1 Q1 2015 Q1 2016 % YoY Q1 2015 Q1 2016 % YoY Distribution 495 492 -1 352 348 -1 Non-regulated/Other 142 149 5 128 127 -1 Total 637 641 1 480 475 -1 Main EBITDA effects (in €bn) Distribution Networks (+/- 0) Reference year for new regulatory period (power) Non-regulated/Ot
Slide 19: Other EU Countries
Other EU Countries 1 1 €m EBITDA EBIT Q1 2015 Q1 2016 % YoY Q1 2015 Q1 2016 % YoY Distribution 256 284 11 166 192 16 Sales 317 405 28 296 381 29 Other/Consolidation 128 142 11 94 105 12 Total 701 831 19 556 678 22 Main EBITDA effects (in €bn) Distribution Networks (+/-0) Start of new regulatory pe
Slide 20: Non-EU Countries
Non-EU Countries €m EBITDA 1 EBIT 1 Q1 2015 Q1 2016 % YoY Q1 2015 Q1 2016 % YoY Russia 83 -36 -143 68 -57 -184 (in Mio Ruble) 5,896 -2,934 -150 4,807 -4,706 -198 Other Non-EU countries 4 20 400 3 20 567 Total 87 -16 -118 71 -37 -152 Main EBITDA effects (in €bn) Russia (-0.1) Effects related to Ber
Slide 21: Cash effective investments by unit
Cash effective investments by unit €m Q1 2015 Q1 2016 % YoY Generation 141 58 -59 Renewables 202 253 25 Global Commodities 11 22 100 Exploration & Production 24 6 -75 Germany 100 133 33 Other EU Countries 135 172 27 Non-EU Countries 46 22 -52 Group Management / 9 31 244 Consolidation Investments 668
Slide 22: Economic net debt
Economic net debt €m 31 Dec 2015 31 March 2016 Liquid funds 8,190 9,070 Non-current securities 4,724 4,684 Financial liabilities -17,742 -16,010 1 Adjustment FX hedging 218 381 Net financial position -4,610 -1,875 Provisions for pensions -4,210 -5,739 Asset retirement obligations 2 -18,894 -18,966 E
Slide 23: Financial liabilities of the E.ON Group
Financial liabilities of the E.ON Group End of Q1 2016 in € billion Maturity profile (as of end of Q1 2016) 2 31 Mar 2016 31 Dec 2015 Bonds 12.1 13.8 in EUR 4.7 6.0 in GBP 4.3 4.7 6.0 in USD 2.6 2.8 5.0 in CHF 0.0 0.0 4.0 in SEK 0.0 0.0 3.0 2.0 in JPY 0.2 0.2 1.0 other currencies 0.3 0.1 0.0 Promiss
Slide 24: Economic interest expense (net)
Economic interest expense (net) Difference €m 3M 2015 3M 2016 (in €m) Interest from financial assets/liabilities -204 -165 +39 Interest cost from provisions for pensions and similar provisions -30 -28 +2 Accretion of provisions for retirement obligation and other provisions -253 -261 -8 Capitalized
Slide 25: E&P - Oil & Gas production
E&P - Oil & Gas production m boe Q1 2015 Q1 2016 % YoY Skarv 3.4 0.0 -100 Njord/Hyme 1.3 0.0 -100 Elgin-Franklin 0.4 0.5 40 Babbage 0.4 0.3 -9 Huntington 0.2 0.5 134 Rita 0.1 0.0 -100 Total North Sea 6.1 1.6 -74 Yuzhno Russkoje 9.8 5.6 -43 Total 15.9 7.2 -55 24
Slide 26: Outright hedging (Central Europe & Nordic)
Outright hedging (Central Europe & Nordic) €/MWh ~39 2016 >80% ~ 31-35 ~33 2017 >80% ~ 25-29 ~27 2018 >30% ~ 23-27 0% 20% 40% 60% 80% 100% Central Europe Nordic 25
Slide 27: E.ON Investor Relations contact
E.ON Investor Relations contact Florian Floßmann T+49 (201) 184 28 33 Head of Investor Relations florian.flossmann@eon.com Alexander Karnick T+49 (201) 184 28 38 Vice President Investor Relations alexander.karnick@eon.com Dr. Stephan Schönefuß T +49 (201) 184 28 22 Manager Investor Relations stephan
Slide 28: Financial calendar & important links
Financial calendar & important links Financial calendar May 11, 2016 Interim Report I: January – March 2016 June 8, 2016 2016 Annual Shareholders Meeting June 9, 2016 Dividend Payment Date August 10, 2016 Interim Report II: January – June 2016 November 9, 2016 Interim Report III: January – December
Slide 29: 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