Slide 1: 2014 first half results
2014 first half results 13 August 2014
Slide 2: 2014 first half results and full year outlook
2014 first half results and full year outlook EBITDA1 Outlook €5,705m €5,013m €9.4bn2 €8.0-8.6bn H1 2013 H1 2014 FY 2013A FY 2014E Underlying net income1 Outlook €1,907m €1,525m €2.2bn €1.5-1.9bn H1 2013 H1 2014 FY 2013A FY 2014E 1. Adjusted for extraordinary effects 1 2. Including pro forma adjustm
Slide 3: Strengthen performance culture
1 Strengthen performance culture Controllable costs E.ON 2.0 wrap-up Fully on track to reduce controllable costs by €bn €1.3bn net to €8.2bn ~10.9 ~1.4 E.ON 2.0 net cost savings to reduce ~2.0 controllable costs by ~14% on a like-for-like ~0.7 ~8.2 basis About 85% of E.ON 2.0 measures already
Slide 4: Push for adequate business environment
2 Push for adequate business environment Key figures UK capacity market 2018-2019 E.ON‘s participation Nameplate GW Derated GW E.ON’s UK fossil assets can qualify for the capacity Outside Demand response market capacity market up to 2.5 GW But not our renewables 19-25 portfolio (wind and biomass
Slide 5: Improve capital management
3 Improve capital management Tightening investments Working capital excellence €4.5bn Order-to-cash Procure-to-pay Reduce Increase accounts accounts receivable payable Working Capital €1.7bn Forecast-to-fulfill Reduce inventory Ambition to improve net working capital by >€1bn like-for-like between
Slide 6: Invest prudently into priority areas
4 Invest prudently into priority areas Grandview Berezovskaya 50% partnership with Hydro-static test of the GE Financial Services boiler in coming days Commissioning Capex significantly early 2015 below benchmark Commissioning by June 1st, 2015 Amrumbank West Humber Gateway First foundat
Slide 7: First half 2014 EBITDA development
First half 2014 EBITDA development 1,2 €bn H1 2013 5.7 E&P 0.2 E.ON 2.0 0.2 Renewables (EC&R) 0.1 Lower nuclear fuel tax 0.2 Disposals -0.5 Power price and volume effect -0.2 Gas optimization -0.2 German regulation -0.1 Region Czechia -0.1 FX effects -0.1 Other -0.2 H1 2014 5.0 1. Adjusted for extra
Slide 8: First half 2014 underlying net income
First half 2014 underlying net income €m H1 20131 H1 2014 % YoY EBITDA 2 5,705 5,013 -12 Depreciation/amortization recognized in EBIT 2 -1,725 -1,770 - EBIT 2 3,980 3,243 -19 Economic interest expense (net) -912 -917 - EBT 2 3,068 2,326 -24 Income taxes on EBT 2 -888 -611 - % of EBT 2 29 26 - Non-co
Slide 9: First half 2014 EBITDA – OCF Reconciliation
First half 2014 EBITDA1 – OCF Reconciliation €bn EBITDA1 5.0 Non-cash effective EBITDA items +0.9 Cash-effective EBITDA 5.9 Provision utilization -1.2 Working capital +1.6 movements Tax, interest & other -0.6 OCF after interest and tax 5.7 1. Adjusted for extraordinary effects 8
Slide 10: First half 2014 economic net debt development
First half 2014 economic net debt development €bn December 31, 2013 -21.7 -10.5 -32.21 Dividends -1.0 Investments -1.7 Net financial position Provisions and other Other -1.1 Divestments +1.4 Operating cash flow +5.7 Pension provisions -0.8 June 30, 2014 -22.6 -7,1 -29.7 1. Figures as of 31.12.2013 i
Slide 11: 2014 outlook
2014 outlook €bn 2013A1 2014E EBITDA 9.4 8.0 – 8.6 Depreciation 3.6 Adj. interest expense 1.8 Taxes 1.2 Minorities 0.4 Underlying net income 2.2 1.5 – 1.9 10 1. Including pro forma adjustment regarding IFRS 10/11
Slide 12: Backup
Backup 11
Slide 13: First half 2014 financial highlights
First half 2014 financial highlights €m H1 20131 H1 2014 % YoY Sales 64,636 56,119 -13 EBITDA 2 5,705 5,013 -12 EBIT 2 3,980 3,243 -19 Underlying net income 2 1,907 1,525 -20 Operating cash flow 4,114 5,676 +38 Investments 4,529 1,718 -62 Economic net debt -32,218 3 -29,717 +2,5014 1. Including pro
Slide 14: First half 2014 EBITDA and EBIT by unit
First half 2014 EBITDA and EBIT by unit €m EBITDA 1 EBIT 1 H1 20132 H1 2014 % YoY H1 20132 H1 2014 % YoY Generation 932 1,182 +27 503 724 +44 Renewables 810 870 +7 597 654 +10 Global Commodities 690 157 -77 631 109 -83 Exploration & Production 461 668 +45 243 361 +49 Germany 1,382 1,079 -22 1,014 77
Slide 15: From EBITDA to net income
From EBITDA to net income H1 20132 H1 2014 % YoY EBITDA 1 5,705 5,013 -12 Depreciation/Amortization/Impairments -1,725 -1,770 - EBIT 1 3,980 3,243 -19 Economic interest expense (net) -912 -917 - Net book gains 1,832 297 - Restructuring and cost-management expenses -213 -184 - Mark-to-market valuatio
Slide 16: Generation
Generation €m EBITDA 1 EBIT 1 H1 20132 H1 2014 % YoY H1 2012 H1 2014 % YoY Nuclear 656 742 +13 548 616 +12 Steam 258 349 +35 -25 144 - CCGT 30 116 - -6 -9 - Other/Consolidation -12 -25 - -14 -27 - Total 932 1,182 +27 503 724 +44 Main EBITDA effects (in €bn) Nuclear (+0.1) Mainly lower nuclear tax
Slide 17: Renewables
Renewables €m EBITDA 1 EBIT 1 H1 20132 H1 2014 % YoY H1 20132 H1 2014 % YoY Hydro 424 417 -2 364 355 -2 Wind/Solar/Other 386 453 +17 233 299 +28 Total 810 870 +7 597 654 +10 Main EBITDA effects (in €bn) Hydro (+/-0) Lower volumes in Germany due to prior year’s disposal of hydro assets as part of t
Slide 18: Global Commodities
Global Commodities €m EBITDA 1 EBIT 1 H1 20132 H1 2014 % YoY H1 20132 H1 2014 % YoY Coal/Oil/Freight/LNG -13 24 - -13 24 - Power and Gas 656 75 -89 600 30 -95 Infrastructure/Other 47 58 +23 44 55 +25 Total 690 157 -77 631 109 -83 Main EBITDA effects (in €bn) Power and Gas (-0.6) Prior year’s decon
Slide 19: Exploration & Production
Exploration & Production €m EBITDA 1 EBIT 1 H1 2013 H1 2014 % YoY H1 2013 H1 2014 % YoY Total 461 668 +45 243 361 +49 Main EBITDA effects (in €bn) North Sea fields (+0.2) Higher volumes mainly driven by Skarv moving to plateau production (+0.3) Negative currency impact Yushno Russkoje (+/-0) 18
Slide 20: Germany
Germany €m EBITDA 1 EBIT 1 H1 20132 H1 2014 % YoY H1 20132 H1 2014 % YoY Distribution 1,097 847 -23 768 577 -25 Non-regulated/Other 285 232 -19 246 196 -20 Total 1,382 1,079 -22 1,014 773 -24 Main EBITDA effects (in €bn) Distribution Networks (-0.3) Prior year’s deconsolidation of three regional u
Slide 21: Other EU Countries
Other EU Countries €m EBITDA 1 EBIT 1 H1 20132 H1 2014 % YoY H1 20132 H1 2014 % YoY Distribution 723 563 -22 510 355 -30 Sales 430 353 -18 390 311 -20 Other/Consolidation 219 179 -18 159 97 -39 Total 1,372 1,095 -20 1,059 763 -28 Main EBITDA effects (in €bn) Distribution Networks (-0.2) Mainly due
Slide 22: Non-EU Countries
Non-EU Countries €m EBITDA 1 EBIT 1 H1 2013 H1 2014 % YoY H1 2013 H1 2014 % YoY Russia 355 268 -25 272 195 -28 (in Mio Ruble) (14,436) (12,876) (-11) (11,036) (9,354) (-15) Other Non-EU -41 -35 - -41 -35 - countries Total 314 233 -26 231 160 -31 Main EBITDA effects (in €bn) Russia (-0.1) Currency
Slide 23: Cash effective investments by unit
Cash effective investments by unit €m H1 20131 H1 2014 % YoY Generation 362 307 -15 Renewables 322 418 +30 Global Commodities 80 30 -63 Exploration & Production 245 38 -84 Germany 452 224 -50 Other EU Countries 353 356 +1 Non-EU Countries 2,670 332 -88 Group Management / Consolidation 45 13 -71 Inve
Slide 24: Economic net debt
Economic net debt €m 31 Dec 20133 30 Jun 2014 Liquid funds 7,814 7,874 Non-current securities 4,444 4,710 Financial liabilities -22,724 -19,642 Adjustment FX hedging 1 -46 -53 Net financial position -10,512 -7,111 Provisions for pensions -3,418 -4,203 Asset retirement obligations 2 -18,288 -18,403 E
Slide 25: Strong liquidity and well-balanced maturity profile
Strong liquidity and well-balanced maturity profile Liquidity and financial flexibility Maturity Profile Revolving €bn, as of 30 Jun 20141, 2 credit facility (undrawn) 4 €5bn Liquid funds 3 & non-current securities €12.6bn €0.3bn €1.5bn €1.7bn 2 Liquidity 2014 2015 2016 1 Bond & promissory notes mat
Slide 26: Economic interest expense (net)
Economic interest expense (net) Difference €m H1 20133 H1 2014 (in €m) Interest from financial assets/liabilities -474 -398 76 Interest cost from provisions for pensions and similar provisions -77 -56 21 Accretion of provisions for retirement obligation and other provisions -446 -494 -48 Capitalized
Slide 27: E&P - Oil & Gas production
E&P - Oil & Gas production m boe H1 2013 H1 2014 % YoY Skarv 3.5 7.8 +122 Njord/Hyme 2.1 0 - Elgin-Franklin 0.3 0.4 +69 Babbage 0.4 0.7 +106 Huntington 0.1 0.9 +534 Rita 0 0.4 - Total North Sea 7.3 11.2 +54 Yuzhno Russkoje 18.6 19.0 +2 Total 25.9 30.2 +17 26
Slide 28: Outright hedging (Central Europe & Nordic)
Outright hedging (Central Europe & Nordic) €/MWh ~56 2014 ~42 ~48 2015 ~37 ~38 2016 ~33 0% 20% 40% 60% 80% 100% Central Europe Nordic 27
Slide 29: E.ON Investor Relations Contact
E.ON Investor Relations Contact Dr. Marc Spieker Head of IR T+49 2 11-45 79-3 45 marc.spieker@eon.com Peter Blankenhorn Regions / Sales T +49 2 11-45 79-4 81 SRI, Retail peter.blankenhorn@eon.com François Poullet Generation T +49 2 11-45 79-3 32 E&P francois.poullet@eon.com Marc Koebernick Renewable
Slide 30: Reporting calendar & important links
Reporting calendar & important links Reporting calendar November 12, 2014 Interim Report III: January – September 2014 March 11, 2015 Annual Report 2014 May 7, 2015 Interim Report I: January – March 2015 May 7, 2015 2015 Annual Shareholders Meeting August 12, 2015 Interim Report II: January – June 2
Slide 31: 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