E.on Se · XETR:EOAN
E.on — Debt Investor Presentation (June 2024)
41 slides from E.on's debt investor presentation, Jun 25, 2024
Slide 1: GBP Investor Update
GBP Investor Update
Slide 2: We are the playmaker of the green energy transition in Europe
We are the playmaker of the green energy transition in Europe Energy Networks Energy Infrastructure Solutions Energy Retail We operate the largest energy distribution Industries and cities face major energy We are helping millions of private grid in Europe being the backbone of the supply challenges
Slide 3: Uniquely positioned across the utility value chain
We are uniquely positioned across the utility value chain focusing on electricity distribution and clean energy infrastructure Large-scale Power & Gas Transmission Power & Gas Distribution Supply & Services Generation Energy Networks (75%1) Energy Infrastructure Solutions (10%1) Energy Retail (15%1)
Slide 4: We translate our strategy into an attractive financial framework
We translate our strategy into an attractive financial framework 1 Strong execution 2 Accelerating investment 3 Strong balance sheet 4 Sustainable growth momentum Over delivery on 2023 Significant capex step-up in Capex program financed via Visible value creation path earnings targets in a 2023 sets
Slide 5: Value accretive growth path in all our businesses
Value accretive growth path in all our businesses Energy Networks Energy Infrastructure Solutions Energy Retail EBITDA1 (€bn) EBITDA1 (€bn) EBITDA1 (€bn) +7% CAGR +13% CAGR +5% CAGR Underlying EBITDA 2023-2028 Underlying EBITDA 2023-2028 Underlying EBITDA 2023-2028 ~8.3 6.7-6.9 2.3 6.6 ~2.0 One offs
Slide 6: Over delivery across the board in 2023
Over delivery across the board in 2023 Energy Networks Customer Solutions Group Adj. EBITDA €6.6bn Adj. EBITDA €2.8bn • Adjusted EBITDA • Operational execution and higher • Stabilization of the energy market €9.4bn investments into Regulated Asset Base environment and margin normalization • Temporar
Slide 7: Solid Q1 outturn and full guidance confirmation
Solid Q1 outturn and full guidance Key financials confirmation €bn • Q1 EBITDA outturn in all segments in line with expectations 2,72 2,75 1,03 1,05 • Capex-backed growth and strong execution driving slight year-over- year increase, more than offsetting the unwind of prior year one-off and timing ef
Slide 8: Our distribution networks are vital to a successful green energy transition
Our distribution networks are vital to a successful ~75% green energy transition EBITDA share4 Total RAB1,2 €42bn Empowerment of the energy transition Power: €36bn ~€3.8bn Gas: €6bn 25.6 6.4 FY2023 RAB-effective investment, annual average 2024-2028 Germany Sweden ~20% of capex for • Integration of e
Slide 9: Regulated business nature provides a predictable and profitable earnings growth path
Regulated business nature provides a predictable and profitable earnings growth path with low country risk Energy Networks Energy Networks value drivers Energy Networks investments in EBITDA1 in €bn AAA rated countries +7% + Immediate guaranteed return on Underlying EBITDA CAGR investments 2023-2028
Slide 10: Funding Strategy
Funding Strategy @-or)
Slide 11: Investment program delivered with comfortable extra balance sheet capacity
Investment program delivered with comfortable extra balance sheet capacity in 2028 Strong BBB/Baa rating High earnings quality and growth Debt factor2 target • Sustainable average CCR1 of ~100% from 2024 to 2028 of ≤ 5.0x • Accelerated green energy transition drives EBITDA growth Additional flexibil
Slide 12: Rating upgrade by S&P and rating confirmations by Moody's and Fitch
Rating upgrade by S&P and rating confirmations by Moody's and Fitch S&P WN Upgrade BBB+ / Baa1 Fitch1 S&P Long-term ratings BBB / Baa2 Moody‘s RfD BBB- / Baa3 2017 2018 2019 2020 2021 2022 2023 2024 • Issuer rating: BBB+ (stable outlook) • Issuer rating: Baa2 (stable outlook) • Issuer rating: BBB+ (
Slide 13: Sound funding strategy enabling sustainable green growth path
Sound funding strategy enabling sustainable green growth path Volumes Tenors Green bonds Currencies Diversification €3.5-5bn p.a. 3-30 years >50% p.a. EUR preferred More instrument variety • Bond refinancing • Optimize maturity • Majority of funding • Predominantly euro- • Bond issuances • Capex – m
Slide 14: Green Bond Framework overview
Green Bond Framework overview: Framework structure in line with draft EU Green Bond Standard1 + Process for selection of Management of Green assets and capex Reporting External Verification green assets and capex use-of-proceeds • Electricity Networks (DSO) • All projects directly • E.ON strives to
Slide 15: Relative value
Relative value E.ON Secondary Curve vs. peers1 E.ON Secondary Curve vs. peers I-Spread (bps) UKT-Spread (bps) 210 210 180 180 150 150 120 120 90 90 60 60 30 30 0 0 0y 2y 4y 6y 8y 10y 12y 14y 16y 18y 20y 0y 2y 4y 6y 8y 10y 12y 14y 16y 18y 20y Source: Barclays, Bloomberg as of 24th June 2024 15 1. Bon
Slide 16: Appendix
Appendix
Slide 17: Energy Networks
Energy Networks @-or!
Slide 18: Our distribution networks are vital to a successful green energy transition
Our distribution networks are vital to a successful ~75% green energy transition EBITDA share4 Total RAB1,2 €42bn Empowerment of the energy transition Power: €36bn ~€3.8bn Gas: €6bn 25.6 6.4 FY2023 RAB-effective investment, annual average 2024-2028 Germany Sweden ~20% of capex for • Integration of e
Slide 19: Investment program is boosting our RAB growth to industry leading levels
Investment program is boosting our RAB growth to industry leading levels across core markets E.ON power RAB development1 Power RAB development key countries1 €bn €bn ~10% CAGR ~10% CAGR 55 ~34 2022-2028 Germany2 ~19 ~21 2022-2028 36 2022 2023 2028 31 51 ~8% 29 33 ~8 CAGR Sweden ~5 ~6 2022-2028 2022
Slide 20: Regulated business nature provides a predictable and profitable earnings growth path
Regulated business nature provides a predictable and profitable earnings growth path with low country risk Energy Networks Energy Networks value drivers Energy Networks investments in EBITDA1 in €bn AAA rated countries +7% + Immediate guaranteed return on Underlying EBITDA CAGR investments 2023-2028
Slide 21: Energy Infrastructure Solutions
Energy Infrastructure Solutions
Slide 22: Best-in-class infrastructure portfolio capitalizing upon decarbonization needs
Best-in-class infrastructure portfolio capitalizing upon the ~10% decarbonization needs of cities and industries EBITDA share1 Core Business Key drivers of the market Robust growth trajectory District Heating & Cooling: EBITDA Heating and cooling networks in urban areas. We design, build, own, opera
Slide 23: Attractive and long-term secured returns in a diversified market set-up
Delivering attractive and long-term secured returns in a diversified market set-up Portfolio of infrastructure assets Key drivers of the market • Typical 10-20 years contract duration from contract ~6,000 conclusion infrastructure assets • Long-term contracts that provide inflation protection and ef
Slide 24: Energy Retail
Energy Retail
Slide 25: Diversified customer base managed for efficiency and new solutions convergence
Diversified customer base managed for efficiency and new ~15% solutions convergence EBITDA share3 Diversified customer base of ~47m Managing for efficiency Converging customers into new solutions Customer accounts1 Digitalization Future Energy Home million Target to fully digitize and automate Servi
Slide 26: Offering a steady earnings path combined with attractive cash returns
Offering a steady earnings path combined with attractive ~15% cash returns EBITDA share5 EBITDA1 Energy Retail €bn Grow revenues with new solutions and expand EBITDA 2.3 2.0 B2C margin3 within 3-5% target range 0.72 +~€0.4bn 2023-2028 Total cash contribution4 of €5bn 2024-28 2023 2028 Underlying One
Slide 27: Financials
Financials
Slide 28: Accelerated investment program backed by strict value creation requirements
Accelerated investment program backed by strict value creation requirements 2024-2028 Investments1 Investment split Creating shareholder value €30bn RAB-effective: Energy GER 72% / SWE 9% / CZ 8% / Networks 150-200bps ROCE over WACC Other 11% spread4 €4bn network-adjacent3: €34bn GER 100% Energy 45%
Slide 29: Superior earnings growth profile with high-single-digit CAGR
Superior earnings growth profile with high-single-digit CAGR EBITDA1 Adjusted Net Income1 €bn €bn +7% CAGR +6% CAGR Underlying EBITDA 2023-2028 Underlying ANI 2023-2028 >11 ~3.3 3.1 9.4 2.8-3.0 8.8-9.0 One offs/ Timing One offs/ Timing >11 3.4 Underlying 2023 8.1 8.4 Underlying 2023 2.5 2.6 2023 202
Slide 30: Value accretive growth path in all our businesses
Value accretive growth path in all our businesses Energy Networks Energy Infrastructure Solutions Energy Retail EBITDA1 (€bn) EBITDA1 (€bn) EBITDA1 (€bn) +7% CAGR +13% CAGR +5% CAGR Underlying EBITDA 2023-2028 Underlying EBITDA 2023-2028 Underlying EBITDA 2023-2028 ~8.3 6.7-6.9 2.3 6.6 ~2.0 One offs
Slide 31: Guidance overview
Guidance overview €bn FY 20231 FY 2024 FY 2028 EBITDA2 9.370 8.8-9.0 >11 Energy Networks 6.640 6.7-6.9 ~8.3 Energy Infrastructure Solutions 0.525 0.55-0.65 ~0.95 Energy Retail 2.282 1.6-1.8 ~2.0 Corporate Functions & Other -0.077 ~-0.2 ~-0.1 Adj. Net Income2 3.068 2.8-3.0 ~3.3 EPS2 € 1.18 €1.07-1.15
Slide 32: E.ON Bond Maturity Profile
E.ON Bond Maturity Profile EURbn 3,00 2,50 2,00 1,50 1,00 0,50 0,00 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 EUR Green EUR Non-Green GBP USD Others (NOK, CHF, JPY, HKD) 32
Slide 33: Digital
Digital
Slide 34: E.ON is pioneering the digital transformation of the energy sector
E.ON is pioneering the digital transformation of the energy sector The new energy world is more decentralized, more E.ON will create an end-to-end digitized energy value chain amongst 4 strategic pillars volatile and more connected with fast growing and strong ambitions complexities Digital Networks
Slide 35: ESG
ESG
Slide 36: Sustainability: Ambitious targets form the basis for all our businesses
Sustainability: Ambitious targets form the basis for all our businesses Ambitious ESG targets Full focus on Governance and Lead in transparency and commitments decarbonization sustainable finance reflected in good ratings Scope 1+2 Scope 3 • >15% of all renewable assets • New remuneration system Lis
Slide 37: E.ON's sustainability performance continuously highly ranked by ESG rating agencies
E.ON’s sustainability performance continuously highly ranked by ESG rating agencies Current rankings Rankings development1 Rating: AA 2023 2022 2021 Rated on a AAA to CCC scale High relative performance MSCI AA AA AA ESG Risk Rating: 17.6 (low risk) Low risk Medium risk Low risk Rated on a 0 to 40+
Slide 38: Green Bond Framework overview
Green Bond Framework overview: Framework structure in line with draft EU Green Bond Standard1 + Process for selection of Management of Green assets and capex Reporting External Verification green assets and capex use-of-proceeds • Electricity Networks (DSO) • All projects directly • E.ON strives to
Slide 39: Green Bond categories
Green Bond categories Electricity Networks (DSO) Renewable Energy Energy Efficiency Clean Transportation All distribution infrastructure and Renewable energy production and Integrated on-site business and city EV charging stations and supporting equipment in the inter-connected storage including3 en
Slide 40: Financial calendar & important links
Financial calendar & important links Financial calendar Important links To be directed to our products please follow the links: • Presentations • Facts & Figures 2023 May 15,14, August 2024 2024 May 16, 2024 November 14, 2024 • Annual Reports Quarterly Statement Half Year Financial Report Annual Gen
Slide 41: 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