E.on Se · XETR:EOAN
E.on — Non-Deal Roadshow (November 2018)
88 slides from E.on's roadshow presentation, Nov 14, 2018
Slide 1: Creating the future of energy
Growth Focus Discipline Creating the future of energy http://www.energyfortomorrow.eu/ November 2018
Slide 2: Creating the future of energy
Creating the future of energy EBIT (€ bn) • Focus: Europe’s first energy player with exclusive downstream focus ~51 • Unique downstream footprint: RAB and customer numbers rise >60%1 Enel2 Future Engie2 Nat. Grid2 Iberdrola2 • Earnings quality: network EBIT share rises to ~80%1 E.ON • Strong
Slide 3: Creating two focused energy companies
Creating two focused energy companies Structure today ~77% E.ON innogy RWE Target structure Future E.ON 16.67% RWE 3
Slide 4: Acquisition of innogy via innovative asset exchange
Acquisition of innogy via innovative asset exchange innogy Total equity value: ~€22bn Asset exchange (limited cash impact) 16.67% Stake in Future E.ON (~€3.7bn) 1. Acquisition of RWE‘s 76.8% stake in innogy via asset exchange 2. RWE to get in exchange: E.ON & innogy Renewables • 16.67% in new E.ON v
Slide 5: Transacting from a position of strength
Transacting from a position of strength E.ON today E.ON today (’17) Future E.ON (’17) Group EBITDA EBIT €3.1bn1 Upper end of guidance €5bn1 ~€8bn2 ANI €1.4bn1 +58% YoY END €19.2bn1 Leverage target of 3.9x achieved before monetization of Uniper Energy Networks ~€23bn ~€37bn RAB1, 4 RAB2, 4 Pa
Slide 6: Unique downstream position across Europe
Unique downstream position across Europe Excludes npower UK customers subject to transaction with SSE Energy Networks (RAB) Sweden1 UK Customer Solutions (number of customers) ~€4bn ~1m - ~7m1 NL/BE CEE3 - ~4m2 ~€11bn4 ~13m Germany3 Turkey1 ~€20bn ~14m ~€1bn ~9m 1. E.ON 2017 reported, 2. innogy 2017
Slide 7: Focus, scale and efficiency pre-requisite for success
Focus, scale and efficiency pre-requisite for success Mega trends accelerate and reinforce each other Empowered • Future E.ON’s unique downstream positioning fully customers captures benefits of energy mega trends Focus, scale and efficiency needed Digitization in New Energy World New culture & Elec
Slide 8: Acceleration of strategy execution & reset of E.ON
Acceleration of strategy execution Unique strategic position • Focus on high-performance regulated networks and state-of-the-art customer solutions Position of strength • Reduction of portfolio complexity • Enhanced earnings quality: ~80% of EBIT1 is regulated • Aiming to deliver absolute Transition
Slide 9: Value creation for shareholders
Value creation for shareholders Realization of valuation premium Potential for 12 premium 11 valuation Renewables innogy acquisition at ~10x 1011x EV/EBITDA EV/EBITDA 9 8 Instant Platform Shareholder 7 redeployment of for high value capital Synergies 6 creation (€600-800m) 5 4 3 Renewables1 1. Enter
Slide 10: Integration of innogy provides for strong synergy potential
Integration of innogy provides for strong synergy potential Estimated synergies (€ m)2 Synergy focus1, 2 Corporate Functions & IT €600-800m Energy Sales & Customer Solutions ~100% Energy Networks ~55% ~25% • Strong synergy potential of €600-800m • 10-15% of controllable costs ~5% • ~5000 FTEs affect
Slide 11: Attractive earnings & dividend profile secured long-term
Attractive earnings & dividend profile secured long-term EBIT development3 Synergies to over-compensate Share of regulated network earnings (EBIT) 6 fading nuclear earnings E.ON today Future E.ON 5 4 ~65%1 3 ~80%2 2 1 0 2018 2019 2020 2021 2022 Regulated Non-regulated E.ON stand-alone Enlarged E.ON
Slide 12: Future E.ON's key financials
Future E.ON‘s key financials EBITDA ~€8bn1 Energy Networks ~80% Customer Solutions regulated2 Non-Core EBIT ~€5bn1 EPS EPS accretion from second year after completion Aiming to deliver absolute annual dividend growth Dividend (fixed dividend for 2018: €0.433) 1. Future E.ON pro-forma 2017 (innogy da
Slide 13: Pro forma economic net debt
Pro forma economic net debt E.ON today1 (€ bn) Future E.ON2, 3 (€ bn) Includes: ~35 • Acquisition of 23.2% minority shares • €1.5bn cash payment from RWE ~€2.8bn debt Further deleveraging measures ~19.2 to be realized in ‘18 (€ ( bn)) transferred to RWE ~5.0 + Monetization of Uniper shares ~3.6 • Nu
Slide 14: Investor agreement with RWE ensures equal treatment of shareholders
Investor agreement with RWE ensures equal treatment of shareholders Preamble • RWE to act purely as financial investor Corporate • Right to nominate one Supervisory Board member Governance Shareholder • Not allowed to increase stake above 16.67% structure and rights • Not allowed to sell to an E.ON
Slide 15: Framework agreement signed — innogy fully supports the transaction
Framework agreement signed — innogy fully supports the transaction and its implementation • Antitrust & other regulatory approvals Support areas • Preparation of carve-out of innogy’s RES business • Communication: public, internal and in capital markets Working together in • Joint project for integr
Slide 16: Transaction timeline
Transaction timeline 2018 2019 2020 2021 Voluntary public takeover offer (PTO) ended 25 July 1st Closing • E.ON becomes ≥76.8% shareholder in innogy • RWE becomes 16.67% 2nd Closing • Transfer of E.ON and innogy RES Assets • Transfer of Kelag participation and gas storage assets of innogy sharehol
Slide 17: Schematic merger control proceedings
Schematic merger control proceedings Simplified overview of process steps of EU merger control proceedings (possible (partial) referrals to national authorities not taken into account1) Presentation of potential concerns Not before mid-2019 ≈ May 2018 regarding market segments Expected EU Commission
Slide 18: Investment highlights
Investment highlights Starting from position of strength: Creating the future of energy Growth Aiming to deliver absolute annual dividend growth Focus Unique downstream positioning with ~80% regulated earnings1 Renewables value crystallization and €600-800m synergies Discipline High commitment to st
Slide 19: 9M 2018 Results
Growth Focus Discipline 9M 2018 Results E.ON standalone November 14th, 2018
Slide 20: Strong 9M 2018 results – On track to achieve upper half of guidance range
E.ON standalone Strong 9M 2018 results – On track to achieve upper half of guidance range Highlights Key Financials1 €m € bn Strong EBIT development: 2,352 +11% 9M 2018 vs. 9M 2017 partly on the back 2,117 19.2 of phasing effects that will reverse in Q4 2018 Adj. Net Income up +25% YoY 15.4 1,208 FY
Slide 21: Transaction & operations update
E.ON standalone Transaction & operations update • Germany: regulatory review ongoing Cost audit finalized, awaiting benchmarking results • Sweden: positive court decision on carry-over Court confirmed E.ON view; appealed by regulator • Antitrust approval on track Regular contact with EU Case Team on
Slide 22: EBIT development in line with expectations
E.ON standalone EBIT development in line with expectations EBIT1 9M 2018 vs. 9M 2017 Key 9M Effects €m Energy +/– • Germany: positive one-off effects in Q2 & Q3 9M 2017 2,117 Networks 2018, reversal of regulatory effects, disposal gas network HH, new regulatory period gas Energy -31 +/–• Sweden: tar
Slide 23: Adj. Net Income profiting from lower interest expenses and stable tax rate
E.ON standalone Adj. Net Income profiting from lower interest expenses and stable tax rate 9M 2018 €m Group EBIT1 2,352 Interest on ~€ 90m improvement yoy mainly due to refinancing fin. assets/ -436 benefits, partly compensated by lower interest income liabilities2 from asset portfolio Other interes
Slide 24: END lowered mainly due to sale of Uniper stake
E.ON standalone END lowered mainly due to sale of Uniper stake END1 9M 2018 vs. FY 2017 € bn +3.9 AROs Pension provisions -10.6 Net financial position Liquidation of pension scheme -10.4 in Q1 2018 results in reduction of pension provisions – limited effect on END Sale of Uniper stake -2.7 -3.6 0.9
Slide 25: Outlook 2018 confirmed – On track to achieve upper half of guidance range
E.ON standalone Outlook 2018 confirmed – On track to achieve upper half of guidance range Outlook 2018 Effects for Q4 2018 Energy •– Germany: reversal of reg. effects, new Networks reg. period gas, disposal gas netw. HH €2.8-3.0 bn •– Sweden: adverse FX, divest gas grid •– Turkey: one-off effect in
Slide 26: Appendix
Appendix
Slide 27: E.ON Group
Growth Focus Discipline E.ON Group E.ON standalone
Slide 28: Delivering step by step – Strategy & Operations
E.ON standalone Delivering step by step – Strategy & Operations Portfolio reset completed New culture & capabilities Operational excellence • €3.8bn Uniper disposal: • ~€1bn total contract value • + ~500MW onshore wind decision to accept Fortum’s in B2B new solutions in US in 2017 offer (2017) • + ~
Slide 29: Each pillar with focused and disciplined growth
E.ON standalone Each pillar with focused and disciplined growth Customer Solutions Energy Networks Renewables Total Customer # E.ON power RAB1 E.ON operated capacity +~2m +~€2-3bn +~2GW ~€21- ~24m ~8GW 22bn ~22m ~€19bn ~6GW 2017 2025 2017 2020 2017 2020 • Energy sales: reinvent with • Grow & sustain
Slide 30: Attractive stand-alone profile
E.ON standalone Attractive stand-alone profile EBIT growth EPS growth Dividend growth Aiming to deliver absolute annual dividend growth Group CAGR: +5-10% +40% +3-4% CAGR ~8GW 5.3GW €2.8 – €0.60 – 3.0bn 0.70 2017 2020 €0.30 €0.431 2018 2020 2018 2020 2017 2018 1. Fixed for FY 2018 (paid in 2019). 30
Slide 31: E.ON's guiding principles
E.ON standalone E.ON‘s guiding principles Absolute annual dividend Sustainable & resilient Drive value creation growth EPS growth Operational Capital Customer-led Digitization excellence discipline 31
Slide 32: Strong delivery of financial targets
E.ON standalone Strong delivery of financial targets Deleveraging achieved: EBIT1 vs. guidance Adj. Net income1 vs. guidance significant reduction of END €2.7- €2.8- €1.2- ~€7bn €3.1bn €3.1bn €1.4bn €3.1bn €3.1bn €1.45bn €26.3bn €0.6- €0.9bn €19.2bn €1.0bn 5.3x 3.9x 2016 2017 2016 2017 2016 2017 Gui
Slide 33: Deleveraging creates balance sheet headroom
E.ON standalone Deleveraging creates balance sheet headroom Economic net debt € bn Hybrid Scrip dividend 26.3 cancelled cancelled 21.5 19.2 19.2 ~5.3x EBITDA ~4.4x ~4.0x ~3.9x ~3.9x EBITDA EBITDA EBITDA EBITDA ~3.0x EBITDA FY 16 Q2 17 FY 17 FY 17 Post headroom Mid-term deleveraging target Achieved (
Slide 34: Capex split 2018-2020
E.ON standalone Capex split 2018-2020 Capex1 2018 Capex1 2018-2020 Increase in capex drives the Growth EBIT growth target ~€ 3.5bn ~€ 9.5bn 1.0 26% 25% Segments have to 1.0 compete for capital and Focus against other uses of funds Strict adherence to return 1.5 49% Discipline targets (ROCE 8-10%) En
Slide 35: Sustainable performance - Phoenix & beyond
E.ON standalone Sustainable performance - Phoenix & beyond Phoenix measures fully implemented Fokus (Ger) & SWAT (UK) next wave Gross savings to Restructuring costs (upfront) ~270m 400m offset margin EBIT contribution pressure ~€120m savings ~130m ~£100m savings 2017 2018 Total 2018 2019 2020 beyond
Slide 36: 2018 Guidance
E.ON standalone Group guidance FY 2018 EBIT 2017 EBIT1 (€ bn) €3.1bn Includes ~€100m restructuring costs 3.0 in Customer Solutions (UK, Germany) 2018 Guidance 2017 Actuals 2.8 Adj. Net Income 2017 Adj. Net Income (€ bn) €1.4bn 1.5 1.3 Guidance range 1. Adjusted for non operating effects. 36
Slide 37: Delivering step by step – Attractive dividends
E.ON standalone Delivering step by step – Attractive dividends Absolute dividend growth 2018: Fixed Dividend Aiming to deliver absolute annual dividend growth €0.431 €0.30 €0.21 FY 2016 FY 2017 FY 2018 Dividend Dividend Dividend 1. Fixed for FY2018 (paid in 2019). 37
Slide 38: FOCUS – medium-term framework
E.ON standalone E.ON FOCUS – medium-term framework Our basis for steering the company Capital Structure Strong BBB/Baa Return ROCE1 Dividend 8 – 10 % EBIT3 EPS3 Payout Fixed dividend: €0.435 Group Group Absolute + 3-4% + 5-10% Cash dividend growth Cash conversion rate2 ≥ 80 % Executive Compensation
Slide 39: Investment highlights
E.ON standalone Investment highlights From deleveraging to focused and disciplined growth Deliver sustainable EPS growth and Growth aiming for absolute annual dividend growth Focus Management team with strong shareholder focus Discipline Strict capital discipline and high-performance culture 39
Slide 40: Energy Networks
Growth Focus Discipline Energy Networks E.ON standalone
Slide 41: Energy Networks - The heart of E.ON
E.ON standalone Energy Networks - The heart of E.ON Regulated asset base 20171 Grid length (‘000 km) 1 Sweden Germany ∑ Grid length: 976 €4.0bn €10.7bn ∑ Grid length: 107 490 349 ~€23.1bn2 137 60 2 CEE & 45 Turkey Germany Sweden CEE & Turkey €8.5bn3 EBIT4 2017 Market share (%) Sweden ~75% of €0.5bn
Slide 42: Energy Networks - Higher capex leads to power RAB growth
E.ON standalone Energy Networks - Higher capex leads to power RAB growth Germany Sweden Czech Republic Power RAB1 Power RAB1 Power RAB +12-16% +6-10% +11-15% ~€8bn ~€3.8bn ~€1.4bn 2017 2020 2017 2020 2017 2020 1. Based on constant FX rates. 42
Slide 43: Multi-decade RAB growth engine
E.ON standalone Multi-decade RAB growth engine Energy Networks capex1 €1.7 – 1.8bn Cautious planning +€300m – • Main driver is additional replacement €400m investments • Conservative assumptions on Renewables and E-mobility roll-out €1.4bn €1.4bn Potential upsides to “new normal”-level • Acceleratio
Slide 44: Major transformation in Energy Networks
E.ON standalone Major transformation in Energy Networks Future energy network system will need to combine Energy Network player different layers of infrastructure From To Data center Energy network operator Holistic system provider EMS Platforms Digital layer VPP Smart Home Network control center Lo
Slide 45: Turkey with extraordinary high RAB growth
E.ON standalone Turkey with extraordinary high RAB growth Downstream Business Market & Regulation RAB development Established in 3 high-growth regions Constructive regulatory environment: in bn TL, nominal Leading electricity network operator: − Allowed WACC for 2016-2020 regulatory period has
Slide 46: Operational excellence – digitization in practice
E.ON standalone Operational excellence – digitization in practice Digital workforce Asset replacement decisions Introduce digital application used by every field worker Conventional approach Predictive maintenance comprising all functionalities necessary in the daily work Tool Data driven decisions
Slide 47: Aspiration to develop the platform for energy transition
E.ON standalone Aspiration to develop the platform for energy transition Further decentralization and fragmentation lead to a need for local rebalancing P2P Regional Trading Energy Flex- Local System Markets Energy System Increasing system responsibility Transformative Platform assumed by regional o
Slide 48: Opportunities in adjacent businesses - Broadband
E.ON standalone Opportunities in adjacent businesses - Broadband A Growing from existing assets B Entering Fiber-to-the-Home (FttH) market E.ON's existing fiber-optic infrastructure E.ON's new fiber-optic infrastructure Fiber-optic cables in every street Telco X's and to every backbone household Mob
Slide 49: EBIT outlook – Stability despite two major regulatory reviews
E.ON standalone EBIT outlook – Stability despite two major regulatory reviews Lower allowed returns • Lower allowed returns reflect lower bond yields • Benefits from maturing legacy bonds to be attributed to Energy Higher RAB Networks driving EPS growth €1.9bn Positive one-off German pension cost pa
Slide 50: Customer Solutions
Growth Focus Discipline Customer Solutions E.ON standalone
Slide 51: Energy sales is the anchor of customer solutions
E.ON standalone Energy sales is the anchor of customer solutions Customer focused portfolio E.ON’s market positions Energy Sales is the anchor business EBIT3 2017 €526m Energy Sales EBIT4 B2B Heat & New B2B Solutions ~25% Customer B2C Energy B2C Top 3 ~75% Sales B2M Top 3 Energy Sales: 22m1 customer
Slide 52: Transformation of energy sales
E.ON standalone E.ON is leading the transformation of energy sales Standard tariff customer numbers declining Attractive products Innovative and green tariffs 7 6.3m complemented by smart meter rollout accounts in m 6 Customer 5 Turnaround in 4 customer numbers Protecting revenues Q1 16 Q2 16 Q3 16
Slide 53: Tariff innovations
E.ON standalone Increase customer attraction while reducing cost to acquire Product offering and selection of sales channels lead to… …increase in customer numbers… 200k innovative tariffs sold since June 2017 ~24m Tariff innovations > 5,000 E.ON Plus products (devices as add-on to tariffs) sold ~22
Slide 54: Closing the gap - Cost to serve to be reduced dramatically
E.ON standalone Closing the gap - Cost to serve to be reduced dramatically Measures to reduce cost Efficiency programs Cost to serve ambition to serve €/customer account Other Fokus Metering & Installation Smart Meter ~€120m savings Debt Rollout resolution Servicing SWAT and Backoffice ~£100m saving
Slide 55: Re-inventing our customer business with the digital attacker
E.ON standalone Re-inventing our customer business with the digital attacker Cost <€ 10 Market Synergies efficiency Market Leading across regions leading Cost to Serve cost of change 1-click Single Innovative Fast platform for Customer proposition journey time to market tariff innovations Data +50 N
Slide 56: New Solutions - Strive for leadership with innovative products
E.ON standalone New Solutions - Strive for leadership with innovative products B2B B2M B2C District heating PV + battery Decentral generation Product offering Energy efficiency City quarter solutions Smart home Flexibility & storage Integrated city energy solutions Smart meter Digital energy solutio
Slide 57: B2B - E.ON to become a leading Energy Service Company in Europe
E.ON standalone B2B - E.ON to become a leading Energy Service Company in Europe Ambitious organic growth of TCV1 … …to translate into EBIT2 over time ~ €250-300m ~>2 x ~+25% CAGR ~2 x 2016 2017 … 2020 2025 2016 2017 2020 2025 Become a leading Energy Service Company Decentral Energy Flexibility & Dig
Slide 58: B2M – E.ON is a reliable partner for cities and communities
E.ON standalone B2M – E.ON is a reliable partner for cities and communities Investments with low risk and high return Project examples Capex2 2018-2020 ROCE > 10% > €250m capex project close to Stable (long-term) earnings ~€ 800m Stockholm, COD 2019 Högbytorp, Stockholm 15-20 year contracts 100
Slide 59: B2C - E.ON drives the electrification of the home and mobility
E.ON standalone B2C - E.ON drives the electrification of the home and mobility E.ON product offering for the electrification of home Translating into decent EBIT in the next decade EBIT1 €m PV + battery E.ON Plus + E.ON SolarCloud smart meters E-mobility Home solutions heating Example: PV + battery
Slide 60: Disciplined investment plan to support growth opportunities
E.ON standalone Disciplined investment plan to support growth opportunities Temporary high investments for smart meter & IT Medium-term EBIT development Capex1 2018-2020 €2.4bn Customer Solutions EBIT2 2017-2020 Asset-backed investments Other €526m E-mob Restructuring Heat & New charges Heat & Solut
Slide 61: Renewables
Growth Focus Discipline Renewables E.ON standalone
Slide 62: Position of strength
E.ON standalone Position of strength ~4 GW1 ~3 GW1 Highlights €0.5bn EBIT 2017 (~18% of core EBIT) Stella Arkona ~95% Long-term contracted Rampion or hedged until 2020 Morcone 1 Strong track record with ~7 GW1 delivered 1.4 GW1 0.2 GW1 Under construction: 0.6 GW1 0.2 GW1 Active in 3 technologies and
Slide 63: Growth trend unbroken – RES to dominate global power generation
E.ON standalone Growth trend unbroken – RES to dominate global power generation Capacity additions forecast Bid prices per technology Industry trends Annual build rate avg. 2018-’301 (EUR/MWh) Offshore Onshore 109 103 Decarbonization merchant2 66 59 GW 55 44 GW 43 38 GW Strong cost decrease 17 GW 7
Slide 64: E.ON aims to grow at scale in Onshore
E.ON standalone E.ON aims to grow at scale in Onshore Onshore Offshore Capitalize on attractive Leverage existing Solar PV ~8 GW pipeline options in Europe • From boutique +40%2 to industrial +20-25% • Capex light ~1 GW1 ~5 GW1 2017 2020 2017 2020 1. Operated capacity, 2. ~400MW net capacity additio
Slide 65: High share of contracted revenues provides stability and visibility
E.ON standalone High share of contracted revenues provides stability and visibility High earnings stability and visibility Clear guiding principles • High earnings stability • Secure long-term stable off-take ~95% hedged or long-term contracted1 agreements for new investments • Revenue optimization
Slide 66: Integral part of E.ON - Modular value crystallization
E.ON standalone Integral part of E.ON - Modular value crystallization Develop & Sell & (Operate) Build & Sell & Operate Build & Keep • Rapid monetization of value • Reduce exposure in certain • Resilient long-term cash flows • Capex light geographies • Strong operational capabilities ensure • Additi
Slide 67: Technical/digital excellence to drive down LCOE
E.ON standalone Technical/digital excellence to drive down LCOE1 Predictive maintenance roll-out Array layout optimizer Self-learning algorithms to optimize wind park layout in 60% order to increase 10% production and reduce 2017 2018 2019 2020 wake effects Transparent and effective capex and Single
Slide 68: Play at scale in Onshore - Attractive pipeline in Tier 1 geographies
E.ON standalone Play at scale in Onshore - Attractive pipeline in Tier 1 geographies Gross capacity additions 2018-2020 (MW) Onshore pipeline Onshore pipeline ∑~2GW ~5.9 ~1.8 GW GW COD COD COD COD COD 2016 2017 2018 2019 2020 100% PTC Nordic New Projects Onshore Offshore1, 2 80% PTC UK (Pre- FID pip
Slide 69: Financial Appendix
Growth Focus Discipline Financial Appendix E.ON standalone
Slide 70: Highly stable business profile
E.ON standalone Highly stable business profile Business profile FY EBITDA 20171 High share of regulated and long-term contracted earnings (~3/4 of EBITDA) Operations in Energy Networks under stable, well 15% Energy Networks established frameworks in low risk markets with strong regulatory track
Slide 71: E.ON today – Regulated Energy Networks at the heart
E.ON standalone E.ON today – Regulated Energy Networks at the heart Key financials Core EBIT1 2017 Share of regulated/ 2017 long-term contracted businesses2 Group EBIT1 Customer Solutions Energy Networks Renewables €3.1bn Adj. Net Income1 €1.4bn €0.5bn €1.9bn €0.5bn Regulated/contracted Merchant Str
Slide 72: 2017 yet another year of strong delivery
E.ON standalone 2017 yet another year of strong delivery Highlights Key Financials1 EBIT Adj. Net Income EBIT and Adj. Net Income at the upper end €m €m of the guidance range Economic Net Debt € bn -7.1 3,112 3,074 26.3 +58% Adj. Net Income + 58% versus FY 2016 1,427 19.2 904 Economic net debt reduc
Slide 73: 9M 2018 – Financial Appendix
Growth Focus Discipline 9M 2018 – Financial Appendix E.ON standalone
Slide 74: Financial Highlights
E.ON standalone Financial Highlights €m 9M 2017 9M 2018 % YoY Sales 27,937 24,342 -13 1 EBITDA 3,540 3,675 +4 EBIT 1 2,117 2,352 +11 1 Adjusted net income 965 1,208 +25 OCF bIT -3,091 3,494 – Investments 2,222 2,279 +3 Economic net debt ² -19,248 -15,357 +20 1. Adjusted for non operating effects, 2.
Slide 75: 95% Cash Conversion Rate
E.ON standalone 95% Cash Conversion Rate2 9M 2018 € bn 95% 3.7 0.2 3.5 -0.3 -0.5 2.6 -0.5 -2.3 0.3 EBITDA1 Cash Change in WC OCF bIT Interest Tax Payments OCF Capex FCF Adjustments3 Payments 1. Adjusted for non operating effects, 2. Cash Conversion Rate: OCF bIT ÷ EBITDA, 3. Net non cash effective E
Slide 76: Segments: Energy Networks
E.ON standalone Segments: Energy Networks Energy Networks Highlights EBIT1 € m -2% • Germany + One-off effects in Q2 & Q3 2018 1,503 1,472 – Reversal of regulatory effects – Disposal of gas network Hamburg, new regulatory period gas Germany 781 755 • Sweden + Power tariff increase Sweden 345 363 – A
Slide 77: Segments: Customer Solutions
E.ON standalone Segments: Customer Solutions Customer Solutions Highlights EBIT1 € m • Germany Sales +5% + Price increases in 2017 342 360 – Restructuring charges Germany Sales 76 124 • UK + Seasonality of 3rd party charges (Q3 2018) UK 140 – Restructuring charges, competitive dynamics 143 – Price c
Slide 78: Segments: Renewables
E.ON standalone Segments: Renewables Renewables Highlights EBIT1 € m +14% • Offshore/Other + UK: Capacity additions (Rampion) 283 248 • Onshore/Solar + US: Capacity additions (Bruenning’s Breeze, Radford’s Run) 209 – Support scheme expiries Offshore/Other 186 Onshore/Solar 62 74 9M 2017 9M 2018 €m O
Slide 79: Non-Core business
E.ON standalone Non-Core business Non-Core Highlights EBIT1 € m • PreussenElektra +19% +/– – One-off effects – Lower achieved power prices 264 314 + Higher volumes due to plant outages in 2017 Preussen + Lower depreciation Elektra 357 354 • Generation Turkey + Book loss from asset sale in Q1 2017, o
Slide 80: Adjusted Net Income
E.ON standalone Adjusted Net Income €m 9M 2017 9M 2018 % YoY EBITDA 1 3,540 3,675 +4 Depreciation/amortization -1,423 -1,323 +7 1 EBIT 2,117 2,352 +11 Economic interest expense (net) -575 -500 +13 EBT 1 1,542 1,852 +20 1 Income Taxes on EBT -386 -463 -20 % of EBT 1 -25% -25% - Non-controlling intere
Slide 81: Reconciliation of EBIT to IFRS Net Income
E.ON standalone Reconciliation of EBIT to IFRS Net Income €m 9M 2017 9M 2018 % YoY EBITDA 1 3,540 3,675 +4 Depreciation/Amortization/Impairments -1,423 -1,323 +7 1 EBIT 2,117 2,352 +11 Reclassified businesses of Renewables -240 -278 -16 Interest result 96 -522 -644 Net book gains 288 859 +198 Restru
Slide 82: Cash effective investments by unit
E.ON standalone Cash effective investments by unit €m 9M 2017 9M 2018 % YoY Energy Networks 864 954 +10 Customer Solutions 350 407 +16 Renewables 961 698 -27 Corporate Functions & Other 42 56 +33 Consolidation -5 0 - Non-Core 10 164 - Investments 2,222 2,279 +3 1. Adjusted for non operating effects
Slide 83: Economic Net Debt
E.ON standalone Economic Net Debt1 €m 31 Dec 2017 30 Sep 2018 Liquid funds 5,160 6,489 Non-current securities 2,749 1,997 Financial liabilities -13,021 -10,710 Adjustment FX hedging ² 114 -8 Net financial position -4,998 -2,232 Provisions for pensions -3,620 -2,715 Asset retirement obligations -10,6
Slide 84: Economic interest expense (net)
E.ON standalone Economic interest expense (net) Difference €m 9M 2017 9M 2018 (in € m) Interest from financial assets/liabilities -522 -436 +86 Interest cost from provisions for pensions and similar provisions -61 -48 +14 Accretion of provisions for retirement obligation and similar provisions -49 -
Slide 85: Financial Liabilities
E.ON standalone Financial Liabilities Split Financial Liabilities Maturity profile (as of end 9M 2018)1 € bn € bn 4.8 30 Sep 2018 Bonds -9.2 in EUR -4.0 in GBP -3.9 in USD -0.9 in JPY -0.2 in other denominations -0.2 1.4 Promissory notes -0.2 1.1 Commercial papers 0.0 0.8 0.6 Other liabilities -1.4
Slide 86: Investor Relations contacts
E.ON Investor Relations contacts Dr. Stephan Schönefuß T +49 (201) 184 28 22 Interim Head of Investor Relations stephan.schoenefuss@eon.com Martina Burger T +49 (201) 184 28 07 Manager Investor Relations martina.burger@eon.com Sebastian Gaßner T +49 (201) 184 28 05 Manager Investor Relations sebasti
Slide 87: Financial calendar & important links
Financial calendar & important links Transaction Website: http://www.energyfortomorrow.eu/ Financial calendar March 13, 2019 Annual Report 2018 May 13, 2019 Quarterly Statement: January – March 2019 May 14, 2019 2019 Annual Shareholders Meeting August 7, 2019 Half-Year Financial Report: January – Ju
Slide 88: 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 agree