E.on Se · XETR:EOAN
E.on — Investor Presentation (November 2023)
43 slides from E.on's investor presentation, Nov 8, 2023
Slide 1: Capital Markets Story
Taking action now Capital Markets Story November 2023
Slide 2: We Connect Everyone To Good Energy
Energy Networks We operate the largest energy distribution grid in Europe being the backbone of the green energy transition and the most critical infrastructure for society Energy Infrastructure Solutions Urbanization and sustainability are key drivers to a decentral energy world. We are the change
Slide 3: Contents
Capitel Markets Story | Contents Contents 1 2 3 4 Highlights Energy Customer Financials Networks Solutions 3
Slide 4: Highlights
Highlights 01
Slide 5: Taking action now means accelerating our strategy
Capital Markets Story | 1. Highlights Taking action now means accelerating our strategy Three good reasons to invest in E.ON Dividend Sustainability Energy Transition Accelerator Growth We are driving the green energy Our objective is a climate-neutral transition through digitalization and Our stabl
Slide 6: We are the green energy transition company
Capital Markets Story | 1. Highlights We are the green energy transition company Mostly regulated infrastructure business Long term contracted infrastructure business Diversified energy retail portfolio Energy Networks Energy Infrastructure Solutions Energy Retail ~€36.4bn ~19.5 TWh ~47m Regulated A
Slide 7: We will deliver profitable growth
Capital Markets Story | 1. Highlights We will deliver profitable growth Enhanced 5-year financial framework Dividend per share (DPS) growth of up to 5% p.a. until 2027 €0.51 dividend for FY 2022 EBITDA1 2027: ~€9.0bn EPS1 2027: ~€0.97 Total capex 2023-2027: ~€33bn Capital structure with strong BBB/B
Slide 8: Financial outlook
Capital Markets Story | 1. Highlights Financial outlook €bn Actuals FY 2022 FY 2023 FY 2027 EBITDA1 6.9752 8.6-8.8 ~9.0 Energy Networks 5.459 6.3-6.5 6.5-6.7 • Maintaining sizable buffer Customer Solutions 1.686 2.3-2.5 2.3-2.6 for the winter mainly in Energy Retail 1.118 1.8-1.9 1.5-1.7 Customer So
Slide 9: Energy Networks
Energy Networks 02 BEV eae j ~~
Slide 10: Energy Networks markets
Capital Markets Story | 2. Energy Networks Energy Networks markets Total RAB1,2 €36.4bn Power: €31.1bn Gas: €5.3bn FY2022 RAB €bn 23.3 4.9 8.2 Germany Sweden CEE3,4 and Turkey4 Power Gas Power and Gas 1. RAB is the value of all distribution assets determined by the regulator. In general, RABs from d
Slide 11: Main drivers for E.ON's networks growth
Capital Markets Story | 2. Energy Networks Main drivers for E.ON’s networks growth RES built out 183 GW Network reinforcement Changing customer behavior ~1,600 MW Intel Chip factory 77 GW 2x ~250 MW 2030 Northvolt battery factory 2020 ~240 MW >100 GW Shell H2 Electrolyser RAB-effective RAB-effective
Slide 12: Accelerated capex deployment in line with strategic ambitions
Capital Markets Story | 2. Energy Networks Accelerated capex deployment in line with strategic ambitions Capex 2022 Capex 2023-2027 >€1bn avg. annual increase ~€3.9bn1 ~€5.1bn1 p.a. p.a. ~€26bn total capex Energy Networks 99% EU taxonomy aligned2 2023-2027 Asset reinforcement Renewables build-out Ch
Slide 13: ~80% of RAB effective investments in AAA rated countries
Capital Markets Story | 2. Energy Networks ~80% of RAB effective investments in AAA rated countries Regional share of total RAB effective investments Power RAB development Local drivers €bn 6-8% • Renewable connections CAGR • Major customer projects ~27 2022-2027 ~68%2 Germany3 19.0 • Digitalization
Slide 14: Our power RAB grows to >€46bn in 2027
Capital Markets Story | 2. Energy Networks Our power RAB grows to >€46bn in 2027 E.ON power RAB development1 €bn >46 at least 8% CAGR at least 8% CAGR 2022-2027 6% <5% p.a. 31 292 2019 2020 2021 2022 2027 2030 1. Assuming constant number of network concessions, constant FX-rate as of 31.12.2022. Inc
Slide 15: Allowed revenues positively geared towards rising interest rates and inflation
Capital Markets Story | 2. Energy Networks Allowed revenues positively geared towards rising interest rates and inflation Time horizon Impact of increasing interest rates and inflation on allowed revenues • Allowed WACCs1/Return on Equity are usually adjusted only once per regulatory period • Inflat
Slide 16: Customer Solutions
Customer Solutions 03
Slide 17: Energy Infrastructure Solutions
Capital Markets Story | 3. Customer Solutions | Energy Infrastructure Solutions Energy Infrastructure Solutions Energy Infrastructure Solutions Energy Retail New Business We are decarbonizing cities and We are delivering sustainable, affordable We are providing new solutions that industries. energy
Slide 18: Energy Infrastructure Solutions markets
Capital Markets Story | 3. Customer Solutions | Energy Infrastructure Solutions Energy Infrastructure Solutions markets FY2022 Business clusters Capex: €0.5bn City-quarter solutions based on EBITDA: €0.6bn local concepts FTE: ~6,200 Presence: 15 countries District heating and cooling networks in urb
Slide 19: E.ON best positioned to become change agent for the sustainability transition
Capital Markets Story | 3. Customer Solutions | Energy Infrastructure Solutions E.ON best positioned to become change agent for the sustainability transition Customer segments Our portfolio Our contract models Real estate Core offerings Adjacent offerings Operation and maintenance Waste heat Des
Slide 20: Investment history proves value creation
Capital Markets Story | 3. Customer Solutions | Energy Infrastructure Solutions Investment history proves value creation IRR1 of major investment decisions in EIS since 20182 Investment decisions support value creation across solution projects and customer segments Median IRR confirms CMD ‘21 IR
Slide 21: Capex driven EBITDA growth due to increasing demand for sustainable infrastructure solutions
Capital Markets Story | 3. Customer Solutions | Energy Infrastructure Solutions Capex driven EBITDA growth due to increasing demand for sustainable infrastructure solutions Capex split Energy Infrastructure Faster than market growth EBITDA1 Energy Infrastructure Solutions: 2023-2027 Solutions: 2022-
Slide 22: Energy Retail
Capital Markets Story | 3. Customer Solutions | Energy Retail Energy Retail Energy Infrastructure Solutions Energy Retail New Business We are decarbonizing cities and We are delivering sustainable, affordable We are providing new solutions that industries. energy while turning our customers into pre
Slide 23: Energy Retail markets
Capital Markets Story | 3. Customer Solutions | Energy Retail Energy Retail markets Total customers ~47m Energy Sales: Supply of electricity and gas Retail Solutions Customer accounts 14.1 9.0 million1 Germany United Kingdom 3.9 20.2 Netherlands Other2 and Turkey Power Gas Solutions Power & Gas Powe
Slide 24: EBITDA growth driven by excellence in Energy Sales and value creation in Retail Solutions
Capital Markets Story | 3. Customer Solutions | Energy Retail EBITDA growth driven by excellence in Energy Sales and value creation in Retail Solutions EBITDA1 Energy Retail €bn Energy Sales Retail Solutions We drive We will create value in Retail excellence in Solutions 1.5-1.7 Energy Sales 1. Futu
Slide 25: We increase focus on higher margin customers
Capital Markets Story | 3. Customer Solutions | Energy Retail | Energy Sales We increase focus on higher margin customers Volume sold to B2B customers Customer numbers2 TWh p.a. m ~47 stable 300 9.6 10.6 All 150 3.9 markets 9.0 ~-50%1 14.1 2020 2024 9M 2023 2024 Germany UK NL Turkey Other3 B2B ene
Slide 26: We drive excellence in Energy Sales
Capital Markets Story | 3. Customer Solutions | Energy Retail | Energy Sales We drive excellence in Energy Sales Excellent procurement and risk Digitally- and data enabled excellence Enlarged offer of green tariffs management capabilities Increase efficiency and reduce cost Attract new customers
Slide 27: Strong track record in Retail Solutions is going to continue
Capital Markets Story | 3. Customer Solutions | Energy Retail | Energy Retail Solutions Strong track record in Retail Solutions is going to continue Revenue Retail Solutions1 Revenue Future Energy Home €bn €bn ~1.1 ~2 ~0.9 ~0.7 ~0.6 ~25% ~1 CAGR ~2x 2019 2020 2021 2022 2022 2027 Revenue eMobility So
Slide 28: New Business
Capital Markets Story | 3. Customer Solutions | New Business New Business Energy Infrastructure Solutions Energy Retail New Business We are decarbonizing cities and We are delivering sustainable, affordable We are providing new solutions that industries. energy while turning our customers into prepa
Slide 29: Build, own and operate a pan-European public charging network
Capital Markets Story | 3. Customer Solutions | New Business | eMobility Infrastructure Build, own and operate a pan-European public charging network Ambition eMobility infrastructure portfolio 2023 Market position 6th Reach top 3 positions across our markets with strong partners until 2030 1 3rd 1
Slide 30: E.ON offers hydrogen and derivates via on-site solutions and supply
Capital Markets Story | 3. Customer Solutions | New Business | Hydrogen E.ON offers hydrogen and derivates via on-site solutions and supply H2 demand in the EU1 Our key business activities Selected partnerships Solution business TWh H2 generation Cooperation/Partnerships 730 Renewables Electrolyzer
Slide 31: Financials
Financials 04
Slide 32: Sound financial framework enabling sustainable green growth path and fair shareholder returns
Capital Markets Story | 4. Financials Sound financial framework enabling sustainable green growth path and fair shareholder returns Value-creating Consistent Sustainable Investment green growth earnings growth funding strategy returns investment plan despite interest consistently cost headwinds shar
Slide 33: We are boosting our value-creating investment program
Capital Markets Story | 4. Financials We are boosting our value-creating investment program capturing opportunities under the accelerated clean energy transition 2023-2027 Investments1 €bn ~40% ~60% Maintenance/ Growth replacement ~€26bn Energy Networks ~33 ~1/3 district heating ~2/3 solutions for c
Slide 34: Investment opportunities following strict capital allocation criteria
Capital Markets Story | 4. Financials Investment opportunities following strict capital allocation criteria Average Return on Capital Employed Strict capital allocation criteria Focus on investments in Attractive risk return ROCE regulated networks and profile with IRR infrastructure above project s
Slide 35: Our value-creating investments help achieving bottom line growth
Capital Markets Story | 4. Financials Our value-creating investments help achieving bottom line growth EBITDA1 Adjusted Net Income1 €bn €bn EPS3 20222 € 0.75 2023 € 1.03–1.11 2027 ~€0.97 8.6-8.8 ~9.0 2.7-2.9 7.0 ~2.5 One-off and 1.9 timing effects supporting 2023 20222 2023 2027 Growth 20222 2023 20
Slide 36: EBITDA growth profile strongly supported by all three business pillars
Capital Markets Story | 4. Financials EBITDA growth profile strongly supported by all three business pillars Energy Networks EBITDA1 Energy Infrastructure Solutions EBITDA1 Energy Retail EBITDA1 €bn €bn €bn +~€0.5bn +~€1.1bn +~€0.3bn 2022-2027 2022-2027 2022-2027 1.8-1.9 1.5-1.7 6.3-6.5 6.5-6.7 0.8-
Slide 37: Disciplined cash management ensuring debt factor target of ≤ 5.0x
Capital Markets Story | 4. Financials Disciplined cash management ensuring that green growth will be delivered together with a debt factor target of ≤ 5.0x Disciplined cash management • Working capital excellence program successfully implemented Debt factor1 target of • Support from proactive cash c
Slide 38: Sound funding strategy enabling sustainable green growth path
Capital Markets Story | 4. Financials Sound funding strategy enabling sustainable green growth path Volumes Tenors Green bonds Currencies Diversification Funding €2.5-5bn p.a. 3-30 years >50% EUR, GBP, others More instrument Funding 2023 already preferred variety completed in January • Bond • Optimi
Slide 39: Strong track record of consistent dividend growth
Capital Markets Story | 4. Financials Strong track record of consistent dividend growth Dividend per share € up to 5% DPS growth p.a. until 2027 We have delivered and will continue to deliver 0.51 0.46 0.47 0.49 0.43 0.30 0.21 2016 2017 2018 2019 2020 2021 2022 2027 Growth beyond 39
Slide 40: Capex opportunities allow E.ON to be fully committed to its growth promises
Capital Markets Story | 4. Financials Capex opportunities allow E.ON to be fully committed to its growth promises as the energy transition company Enhanced 5-year financial framework Dividend per share (DPS) growth of up to 5% p.a. until 2027 €0.51 dividend for FY 2022 EBITDA1 2027: ~€9.0bn EPS1 202
Slide 41: Financial calendar & important links
Capital Markets Story | Calender Financial calendar & important links Financial calendar March 13, 2024 May 15, 2024 May 16, 2024 August 14, 2024 Full Year Financial Report Quarterly Statement Annual General Meeting Half-Year Financial Report: 2023 January – March 2024 January – June 2024 Important
Slide 42: E.ON Investor Relations team
Capital Markets Story | Contacts E.ON Investor Relations team Iris Eveleigh Martin Jäger Max Sadrina Andreas Thielen Head of Investor Relations Manager Investor Relations Manager Investor Relations Manager Investor Relations iris.eveleigh@eon.com martin.jaeger@eon.com max.sadrina@eon.com andreas.thi
Slide 43: 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 agre