Slide 1: 2016 full year results
2016 full year results 15 March 2017
Slide 2: Solid delivery of full year 2016 targets
Solid delivery of full year 2016 targets E.ON 2016 full year results Highlights 2016 key figures €m EBIT1 and EBITDA1 at top end of full year guidance 4.600 - 5.000 Adj. Net Income1 at the upper end of the guidance range Dividend proposal: €0.21/share 2.700-3.100 Efficiency program initiated - secur
Slide 3: Strategic priorities delivered
Strategic priorities delivered E.ON 2016 full year results Highlights Successful Uniper spin-off KFK law adopted – major de-risking of E.ON Significant progress in strategic transformation towards customer-centricity 3
Slide 4: KFK implementation in final stages
KFK implementation in final stages E.ON 2016 full year results Total payment amount for E.ON confirmed Status / Next steps € bn 10.0 • German legislative process completed 0.2 2.0 • Law approved by Bundestag and Bundesrat in December 16 7.8 • State aid approval by the EU Commission expected in Q2 17
Slide 5: Energy Networks: Regulatory & operational update
Energy Networks: E.ON 2016 full year results Regulatory & operational update Germany: preparations for next regulatory Enhanced customer focus Digitization in practice period ongoing Modernized regulation framework with yearly RAB true-up and efficiency bonus Review of RoE for 3rd period finaliz
Slide 6: Customer Solutions: Introducing new solutions
Customer Solutions: E.ON 2016 full year results Introducing new solutions E.ON Aura: PV & storage B2B Large: continuously gaining traction E-mobility: gearing up All-in-one solution including PV, battery, Significant sales growth with tailor- Established dedicated unit to take energy managemen
Slide 7: Renewables: Build-out fully on track
Renewables: Build-out fully on track E.ON 2016 full year results Europe Offshore US Onshore Rampion (400 MW in UK) Radford’s Run (278 MW in Illinois) Installations of 116 mono-pile Bruenning’s Breeze (228 MW in Texas) foundations completed Both farms scheduled to be in On time and within
Slide 8: Efficiency program Phoenix: Securing sustainable competitiveness
Efficiency program Phoenix: E.ON 2016 full year results Securing sustainable competitiveness Principles Scope Targets, status, and next steps Controllable cost1 baseline • Phoenix target: €400 m EBIT contribution € bn p.a. from 2018 onwards 1 Business empowerment 5.3 • About €300 m from central over
Slide 9: EBIT at top end of guidance
EBIT at top end of guidance E.ON 2016 full year results EBIT1 FY 2016 vs. FY 2015 €m 3.563 -85 -395 3.168 Outlook range 3.112 2.700 - 20 -10 3.083 -140 29 3.100 6 39 FY 2015 Divested FY 2015 Energy Customer Renewables Corp. Preussen FY 2016 Divested FY 2016 Operations w/o div. Networks Solutions Fun
Slide 10: Adjusted Net Income and EPS up by ~10%
Adjusted Net Income and EPS up by ~10% E.ON 2016 full year results FY 2016 Group EBIT1 3.112 €m Interest on fin. assets/ -614 Improvement vs. previous year due to bond repayment in January liabilities2 Other interest Slightly weaker than previous year; mainly driven by lower -838 expenses constructi
Slide 11: IFRS Equity impacted by one-offs and discontinued operations
IFRS Equity impacted by one-offs and E.ON 2016 full year results discontinued operations IFRS equity € bn -17.8 19.11 Loss from continued operations -1.1 -2.2 (incl. nuclear provision effects of ~-€3.6 bn) Loss from discontinued operations -13.8 (incl. Uniper effects of ~-€14.1 bn) 1.0 1.31 -16.0 -1
Slide 12: KFK solution with positive impact on adjusted net income
KFK solution with positive impact on E.ON 2016 full year results adjusted net income 1. Nuclear fund (KFK) 2. Discount rates 3. Additional asset retirement cost (ARC) Storage related provisions, € bn 10.0 Decommissioning provisions, € bn ARC € bn 11.2 1.0 7.8 2.0 0.2 9.4 9.7 0.3 1.5 Provisions Premi
Slide 13: END increased to €26.3 bn due to nuclear and pension effects
END increased to €26.3 bn due to nuclear E.ON 2016 full year results and pension effects END1 FY 2016 vs. FY 2015 € bn AROs -17.9 -22.5 -21.4 Pension provisions -3.3 3.0 -3.2 0.8 Net financial -0.1 position -1.1 -21.3 -0.7 -4.0 -4.0 1.1 -0.9 -0.9 -26.3 -4.6 -0.3 -27.4 FY END OCF Investment Build & S
Slide 14: Clear deleveraging plan defined
Clear deleveraging plan defined E.ON 2016 full year results Economic net debt Debt reduction measures € bn € bn Capital measures (options incl. ABB1, hybrid) ~2.0 ~-6.3 2 Monetization of Uniper shares ~2.4 26.3 Transfer of Nord Stream 1 into CTA ~1.0 ~ 20.0 (~4x EBITDA) Nuc. decommissioning cost sav
Slide 15: Capex budget significantly reduced
Capex budget significantly reduced E.ON 2016 full year results Medium-term – Gross capex € bn ∑ ~10.0 -20% ∑ ~8.0 • Strict focus on capital discipline across all business units • Three year capex budget decreased by ~20% • Reduced investments in renewables projects, notably starting in 2018 given co
Slide 16: Outlook 2017
Outlook 2017 E.ON 2016 full year results Outlook 2017 Main Drivers for 2017 €2.8-3.1 bn + Increase in Energy Networks contribution – Negative development in commodity retail business EBIT1 – Asset retirement cost (ARC) effect in PreussenElektra (non-cash) €1.2-1.45 bn + Strongly improved financial r
Slide 17: Update of E.ON Focus – Our basis for steering the company
Update of E.ON Focus – E.ON 2016 full year results Our basis for steering the company E.ON FOCUS – medium-term framework Capital structure Strong BBB / Baa Profit Cash Return Growth Group EBIT1 & EPS4 Cash conversion ROCE3 DPS rate2 ≥ 80 % 8 – 10 % FY 2017: € 30ct (fixed) Dividend payout Post 2017:
Slide 18: Appendix A: Supplementary information
Appendix A Supplementary information
Slide 19: Segment Outlook 2017
Segment Outlook 2017 E.ON 2016 full year results EBIT 2016 € m 2017 Drivers for 2017 Energy Networks + Germany: lower maintenance costs, one-time regulatory effects + Sweden: power tariff increase 1,671 + CEE: positive regulatory periods in Czech Republic, Turkey; new regulatory period in Hungary Cu
Slide 20: New Economic Net Debt definition
New Economic Net Debt definition E.ON 2016 full year results FY 2016 END prior definition FY 2016 END new definition € bn € bn -1.1 22.5 27.4 21.4 26.3 Balance Current sheet value value cost 4.0 4.0 0.9 0.9 1 1 NFP Pensions AROs END NFP Pensions AROs END Some provisions calculated with negative re
Slide 21: Discount rates for nuclear provisions
Discount rates for nuclear provisions E.ON 2016 full year results Build up of provisions status quo Build up of provisions post KFK1 Real discount rate: Real discount rate: +0.9% -0.9% Total costs in t0 Total costs in t0 t0 t0 t+1 t+2 t+3 t+100 t0 t+1 t+2 t+n Accretion Storage Decommissioning Accret
Slide 22: Financial Liabilities
Financial Liabilities E.ON 2016 full year results Split Financial Liabilities Maturity profile (as of end FY 2016)1 € bn € bn 4.2 31 Dec 2016 Bonds -11.9 in EUR -4.7 in GBP -4.0 2.7 EUR 2.3 GBP in USD -2.8 in JPY -0.2 USD in other denominations -0.2 1.4 YEN 1.1 Other Promissory notes -0.4 Commercial
Slide 23: Appendix B: 2016 results
Appendix B 2016 results
Slide 24: E.ON continues to benefit from a very stable business profile
E.ON continues to benefit from a very stable E.ON 2016 full year results business profile Business profile post spin… EBITDA 20161 High share of regulated earnings Operations in Energy Networks under stable, well 15% Energy Networks Customer Solutions established frameworks in low risk markets w
Slide 25: Segments: Energy Networks
Segments: Energy Networks E.ON 2016 full year results Energy Networks Highlights EBIT1 € m • Germany: -8% – Positive one-off effects in FY 2015 1,811 • Sweden: 1,671 + Start of the new regulatory period Germany 1,129 894 + 2015 burdened by storm costs • CEE: Sweden 398 + Positive effects in Czech Re
Slide 26: Segments: Customer Solutions
Segments: Customer Solutions E.ON 2016 full year results Customer Solutions Highlights EBIT1 € m +1% • Germany: – Positive one-off effects in FY 2015 806 812 • UK: 232 + Lower ECO² spending Germany 397 – FX weakening following Brexit decision 365 – Competitive dynamics UK 278 • Other: Other 131 215
Slide 27: Segments: Renewables
Segments: Renewables E.ON 2016 full year results Renewables Highlights EBIT1 € m +10% • Offshore: + Positive contribution from Humber & Amrumbank, book gain 430 from Arkona stake sale (Q2 2016) 391 – Negative effects from lower wind yields & adverse FX Offshore/Other 202 development following Brexit
Slide 28: Segments: PreussenElektra
Segments: PreussenElektra E.ON 2016 full year results PreussenElektra Highlights EBIT1 € m – Lower volumes due to Grafenrheinfeld shut-down -2% – Lower achieved power prices 563 553 + Lower nuclear fuel tax + Negative one-off effect in Q4 2015 Hedged Prices Germany (€/MWh) as of 31 Dec 2016 FY 2015
Slide 29: Financial Highlights
Financial Highlights E.ON 2016 full year results €bn FY 2015 FY 2016 % YoY Sales 42.7 38.2 -11 1 EBITDA 5.8 4.9 -15 1 EBIT 3.6 3.1 -13 Adjusted net income 1 1.1 0.9 -16 OCF bIT 4.7 4.0 -16 Investments 3.2 3.2 -2 Economic net debt ² -21.3 -26.3 +23 1. Adjusted for non operating effects, 2. Pro-forma
Slide 30: Adjusted Net Income
Adjusted Net Income E.ON 2016 full year results €m FY 2015 FY 2016 % YoY 1 EBITDA 5,844 4,939 -15 Depreciation/amortization -2,281 -1,827 -20 1 EBIT 3,563 3,112 -13 Economic interest expense (net) -1,485 -1,452 -2 1 EBT 2,078 1,660 -20 Income Taxes on EBT 1 -710 -478 -33 % of EBT 1 -34% -29% - Non-c
Slide 31: From EBITDA to Net Income
From EBITDA to Net Income E.ON 2016 full year results €m FY 2015 FY 2016 % YoY 1 EBITDA 5,844 4,939 -15 Depreciation/Amortization/Impairments -2,281 -1,827 -20 1 EBIT 3,563 3,112 -13 Economic interest expense (net) -1,485 -1,452 -2 Net book gains 421 63 -85 Restructuring -374 -274 -27 Mark-to-market
Slide 32: Cash conversion at 80% within target range
Cash conversion at 80% within target range E.ON 2016 full year results FY 2016 € bn CCR2: 80% 4.9 1.2 1.8 4.0 0.2 0.1 3.0 0.5 0.5 3.2 -0.2 EBITDA1 Non-cash Provision Changes Payments OCF bIT Interest Tax OCF Capex FCF effective utilization in NOWC related to Payments Payments EBITDA non-op items ear
Slide 33: Cash effective investments by unit
Cash effective investments by unit E.ON 2016 full year results €m FY 2015 FY 2016 % YoY Energy Networks 1,521 1,419 -7 Customer Solutions 531 580 +9 Renewables 1,010 1,070 +6 Corporate Functions & Other 187 106 -43 Consolidation -38 -21 -45 PreussenElektra 16 15 -6 Investments 3,227 3,169 -2 1. Adju
Slide 34: Economic Net Debt
Economic Net Debt1 E.ON 2016 full year results €m 31 Dec 2015 31 Dec 2016 Liquid funds 7,829 8,573 Non-current securities 4,536 4,327 Financial liabilities -15,790 -14,227 Adjustment FX hedging ² 218 390 Net Uniper Loan ³ 3,079 0 Net financial position -129 -937 Provisions for pensions -3,281 -4,009
Slide 35: Economic interest expense (net)
Economic interest expense (net) E.ON 2016 full year results Difference €m FY 2015 FY 2016 (in € m) Interest from financial assets/liabilities -683 -614 +69 Interest cost from provisions for pensions and similar provisions -78 -84 -6 Accretion of provisions for retirement obligation and similar provi
Slide 36: E.ON Investor Relations contacts
E.ON Investor Relations contacts E.ON 2016 full year results 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 Martina Burger T +49 (201) 184 28 07 Manager Inve
Slide 37: Financial calendar & important links
Financial calendar & important links E.ON 2016 full year results Financial calendar May 9, 2017 Interim Report I: January – March 2017 May 10, 2017 2017 Annual Shareholders Meeting August 9, 2017 Interim Report II: January – June 2017 November 8, 2017 Interim Report III: January – September 2017 Mar
Slide 38: Disclaimer
Disclaimer E.ON 2016 full year results 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 acces