E.on Se · XETR:EOAN
E.on — Investor Day (November 2021)
115 slides from E.on's investor day presentation, Nov 23, 2021
Slide 1: Capital Markets Story 2021
Capital Markets tory 2021 » a
Slide 2: Connecting everyone to good energy
Connecting everyone to good energy
Slide 3: E.ON combines stability of regulated and infrastructure businesses with ambitious growth
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON combines stability of regulated and infrastructure businesses with ambitious growth … Unique positioning with customer-centric energy infrastructure and solutions Up-stream and Power and gas Customer power generation
Slide 4: Our investment highlights
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials … which is reflected in our investment highlights Dividend growth Our resilient and future-proof portfolio is the foundation for dividend growth and sustainable value creation Customer-centric energy infrastructure and so
Slide 5: We commit to annually grow the dividend, also beyond 2026
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials We commit to annually grow the dividend, also beyond 2026 Dividend per share € 0.491 0,46 0,47 0.491 0,43 0,30 0,21 2016 2017 2018 2019 2020 2021 2026 Growth beyond We delivered … … and will continue to deliver 1. Subject
Slide 6: All our businesses are benefitting from massively growing markets
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials All our businesses are benefitting from massively growing markets 50-70% >100% Growth in share of Growth of annual electricity vs. overall investment needs in EU energy demand related to power distribution E.ON’s main cus
Slide 7: E.ON is inherently sustainable
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON is inherently sustainable We enable the decarbonization … by providing the backbone for of society … the energy transition Sustainable business: helping our customers to decarbonize is the key driver of our growth We
Slide 8: E.ON will become an all-digital company
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON will become an all-digital company unlocking additional value for the core businesses Group-wide harmonized architecture Energy Networks (Common-Technology-Platform) Experience and solutions Smartification Productivi
Slide 9: New Financial Framework with extended outlook until 2026
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials New Financial Framework with extended outlook until 2026 providing more visibility Dividend per share (DPS) growth of up to 5% p.a. until 2026 €0.49 dividend for FY 20211 EBITDA2,3 2026: ~€7.8bn / ~4% CAGR4 2022-2030: Ave
Slide 10: Guidance overview
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Guidance overview €bn 2021 2026 CAGR 21-26 2022-2030 (5yr rolling)1 Core EBITDA2 6.3-6.5 ~7.8 ~4% - Energy Networks 5.0-5.2 6.0-6.2 3-4% - Customer Solutions 1.4-1.6 1.9-2.2 5-8% - Energy Retail 1.0-1.1 1.2-1.4 3-6% - Ene
Slide 11: Decade of change ahead: Energy world of tomorrow
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Decade of change ahead: Energy world of tomorrow - distributed and connected Yesterday Tomorrow Centralized transmission-heavy energy system Distributed and connected energy system The decarbonization of the energy system
Slide 12: Decarbonization is driving electrification
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Decarbonization is driving electrification Increasing electrification across entire sectors Projected electricity demand in Europe in 2030 TWh ~730 TWh e.g. hydrogen for More than annual German steel/cement production ele
Slide 13: Sustainability
Sustainability
Slide 14: At a glance: Our Group targets on Sustainability
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials At a glance: Our Group targets on Sustainability WE will achieve carbon-neutrality for Scope 1 and 2 by 2040 and full carbon-neutrality by 2050 (Scope 3) WE have set absolute SBTi1 targets and a SBTi1 intensity target for
Slide 15: E.ON is inherently sustainable
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON is inherently sustainable We enable the decarbonization … by providing the backbone for of society … the energy transition Sustainable business: helping our customers to decarbonize is the key driver of our growth We
Slide 16: Our targets across all sustainability dimensions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Our targets across all sustainability dimensions Environ- Gover- Social mental nance Scope 1 & 2 emissions Female Executives Supervisory Board composition -100% ≥30% ≥30% by 2040 women in management female positions by 20
Slide 17: Sustainability KPI: Environmental ambitions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Sustainability KPI: Environmental ambitions Environ- mental KPI 2020 achieved Target Scope 1: % -81 CO2 footprint reduction -75 (2030)1 and -100 (2040) Scope 2: % -71 [CO2eq emissions] Scope 3: % -101 -50 (2030)1 and -100
Slide 18: Sustainability KPI: Social ambitions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Sustainability KPI: Social ambitions Social KPI 2020 achieved Target Diversity: Female executives % 21 ≥ 30 by 2030 Index SIF1: 0.09 ≤ 0.07 by 2025 Health & safety Index LTIF2: 1.54 People development: NEW h/a 10.3 Traini
Slide 19: Sustainability KPI: Governance ambitions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Sustainability KPI: Governance ambitions Gover- nance KPI 2020 achieved Target Share of female % 30 ≥30 Supervisory Board members Independent Supervisory % 100 - Board members1 ESG included in Board NEW - - From 2022 onwa
Slide 20: E.ON on its way to achieve ambitious climate targets
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON on its way to achieve ambitious climate targets E.ON’s carbon footprint E.ON’s targets2 million metric tons 4 2030 2040 2050 Scope 1 4 5 Scope 2 -75% -100% 5 120 Scope 3 -50% -100% 108 3 Avoided >100 emissions1 ~100
Slide 21: Sustainability criteria are deeply embedded in our business
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Sustainability criteria are deeply embedded in our business Active steering of carbon Integration of climate footprint, health & safety and social risks into all and diversity steering processes Sustainability KPIs and ta
Slide 22: The new E.ON Board Compensation Plan
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials The new E.ON Board Compensation Plan: Sustainability targets embedded in short-term and long-term incentive (As of 01.01.2022) Target structure Maximum remuneration Base | Fixed amount, paid in twelve monthly rates 26-32%
Slide 23: E.ON Sustainability Index reflects ambitious sustainability targets
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON Sustainability Index reflects ambitious sustainability targets Exemplary composition of E.ON Sustainability Index as integral part of the E.ON Board and executive compensation scheme Carbon emission reduction Climate
Slide 24: Sustainability performance highly ranked by ESG rating agencies
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON’s sustainability performance highly ranked by ESG rating agencies Rating: AA Rated on a AAA to CCC scale E.ON listed on High relative performance ESG Risk Rating: 18.2 (low risk) Rated on a 0 to 40+ scale Rank 3 out
Slide 25: Environmental projects with focus on biodiversity
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON contributes to a variety of impactful environmental projects with focus on biodiversity E.ON is an exclusive corporate Ecological corridor management is a The LEAF Coalition has mobilized partner of UNEP supporting t
Slide 26: Digital
Digital
Slide 27: At a glance: Our Group targets on Digital
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials At a glance: Our Group targets on Digital WE will introduce a Group-wide Common-Technology-Platform for E.ON WE will move all applications from our data centers to the cloud by end of 2023 WE will significantly increase o
Slide 28: Digitalization addresses increasing complexities of the energy system
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Digitalization addresses the increasing complexities of the energy system of the future The energy system is becoming more decentralized, volatile and … leading to new challenges for E.ON connected with fast growing compl
Slide 29: Our digitalization strategy pays off in our core businesses
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Our digitalization strategy pays off in our core businesses Energy Networks Customer Solutions Smartification of assets • 4-5% productivity increase in Energy Networks supported by • Driving maximum efficiencies by implem
Slide 30: Digital transformation is at the core of E.ON's strategy
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Digital transformation is at the core of E.ON’s strategy Digital transformation is about applying technologies to radically change traditional processes, products and services into data-driven, highly connected solutions
Slide 31: Group-wide Common-Technology-Platform for E.ON
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Introducing a Group-wide Common-Technology- Platform for E.ON Benefits of CTP1 CTP1 covers four layers Experience and solutions • Process excellence through Seamless customer experience, standardization across the insight
Slide 32: Partnership approach to fully cloudify our data centers
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Partnership approach to fully cloudify our data centers Cloud transition underway Roles in cloudification of E.ON until 2023 Transform to an even more stable and reliable E.ON takes on ownership and accountability infrast
Slide 33: Open digital energy ecosystem creates additional business opportunities
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Open digital energy ecosystem creates additional business opportunities e.Hub – capitalizes on revenue opportunities arising from the decentral energy system Why we do it What we do • A single control center can no • Deve
Slide 34: Digitally enhance our engagement with customers
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials We will digitally enhance our engagement to leverage the digital customer journey Optimizing customer relationship management to harvest cross selling opportunities and efficiency potential Integrated digital online • One
Slide 35: We prioritize digital upskilling of our entire workforce
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials We prioritize digital upskilling of our entire workforce We conduct upskill journeys We create expert services to retain crucial We develop a Group-wide for all our employees capabilities within E.ON digital academy • Web
Slide 36: Energy Networks
| Energy Network < P- = &
Slide 37: At a glance: Our ambitions for Energy Networks
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials At a glance: Our ambitions for Energy Networks WE will accelerate our power RAB growth to at least 6% p.a. WE will deliver underlying EBITDA growth in Energy Networks of 3-4% p.a. until 2026 resulting in an EBITDA between
Slide 38: E.ON's networks are the backbone for Europe's green energy transition
E.ON’s networks E.ON’s markets are the backbone Total RAB 1,2 for Europe’s €34.9bn Germany 22.4 green energy Power: €29.4bn RAB €bn transition Gas: €5.5bn FY2020 Sweden RAB €bn 4.8 CEE3,4 and Turkey4 RAB €bn 7.7 Power Power Gas and Gas 1. RAB is the value of all distribution assets determined by the
Slide 39: Decarbonization requires significant investments in power distribution networks
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Decarbonization requires significant investments in power distribution networks Annual investment needs in EU power distribution networks Renewables Renewables build-out Changing build-out customer behavior €bn 39 Additio
Slide 40: Energy transition creates opportunity to grow our network infrastructure
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy transition creates an unprecedented opportunity to grow our network infrastructure Renewables build-out E.ON power RAB growth In the next 5 years, we will connect more than 37 GW of We are ready to deliver this gro
Slide 41: Renewables build-out: a main driver for networks growth
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Renewables build-out: One of the main drivers for E.ON’s networks growth Rising renewables capacity connected to E.ON’s networks >20% of renewables in Europe 150 GW connected to E.ON‘s networks, this is overproportional t
Slide 42: Changing customer behavior: Increased connection requests
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Changing customer behavior: Increased connection requests to E.ON’s networks Examples for connection requests to E.ON’s networks from industrial customers ~1,600 MW ~180 MW ~180 MW Data centers Volkswagen battery Currenta
Slide 43: Digitalization: €300-400m annually for network smartification
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Digitalization: We will invest €300-400m annually for network smartification Asset smartification progress in Germany Digitalization leads to smartification Networks Invest 2026 Benefit Digital interconnection of assets v
Slide 44: Network reinforcement: Further acceleration of RAB growth
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Network reinforcement: Further acceleration of E.ON’s RAB growth Changing customer demand … … creates the need for reinforced and modernized networks To balance the customer demand growth with security of supply, assets n
Slide 45: We accelerate our power RAB growth to at least 6% p.a.
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials We accelerate our power RAB growth to at least 6% p.a. E.ON power RAB development1 €bn >40 30 29 28 27 2018 2019 2020 2021 2026 2030 1. Assuming constant number of network concessions, constant FX-rate (year-end 2020) 45
Slide 46: RAB growth driven by market specific parameters
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials RAB growth driven by multiple market specific parameters Power RAB development Local drivers €bn 5-7% CAGR • Renewable connections Germany1 25,4 • Major customer projects ~18 >24 • Digitalization /modernization 2021 2026
Slide 47: Accelerated capex deployment in line with strategic ambitions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Accelerated capex deployment in line with strategic ambitions Capex 2021 Capex 2022-2026 >90% >90% EU taxonomy EU taxonomy aligned2 aligned2 ~€4.5bn1 ~€3.5bn1 ~€1bn p.a. increase p.a. €22bn Total capex 2022-2026 Network r
Slide 48: Gas networks enable us to integrate hydrogen
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Gas networks enable us to integrate hydrogen and represent a future investment opportunity We support our customers’ decarbonization with hydrogen solutions Upstream Midstream Downstream Power generation Transportation H2
Slide 49: Strong track record in leading efficiency
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON builds on a strong track record in leading efficiency German power network efficiency scores Sweden power network efficiency scores >€600m additional revenues in regulatory period 1 100% 100% E.ON networks 95% Indust
Slide 50: Performance culture is boosting productivity
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON’s performance culture is boosting productivity across all markets Internal efficiency benchmarking across all markets Constantly improving productivity All E.ON DSOs Opex/RAB (average across countries) >€5bn Underlyi
Slide 51: We build ONE data platform for Energy Networks
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials We build ONE data platform for Energy Networks Architecture of digital ecosystem Smart solutions Regulated business Additional network business Access to all data sources allows additional value creation (e.g. through AI)
Slide 52: Digitalization is key driver for our productivity
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Digitalization is key driver for our productivity Enabling renewables and High security of supply Transparency in energy consumption Reduction of customer CO2 footprint eMobility build-out Network quality outperforming So
Slide 53: Digitalization offers additional benefits and earnings potential
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Digitalization offers additional benefits and earnings potential Significantly enlarged RAB Fully digital networks Attractive partner New business opportunities Smartification increases RAB Increased cost efficiency in Ex
Slide 54: Energy Networks EBITDA to grow 3-4% until 2026
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy Networks EBITDA to grow 3-4% until 2026 Energy Networks EBITDA1 and outlook €bn 6.0-6.2 5.2 5.0-5.2 1,0 0,5 3,6 2020 2021 2026 Germany Sweden CEE and Turkey 1. Adjusted for non-operating effects 54
Slide 55: Various EBITDA components beyond allowed return
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Various EBITDA components beyond allowed return Illustrative EBITDA components across E.ON regions ~33% ~30% ~37% • Opex efficiency Actual vs. allowed opex • Income from incentives E.g. network losses, network Return on R
Slide 56: Germany: Illustrative EBITDA composition
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Germany: Illustrative EBITDA composition – More components than allowed Return on Equity Illustrative EBITDA1 composition Regulatory Performance Additional Return on Equity Participations2 Other earnings Timing effects de
Slide 57: Sweden, CEE and Turkey: Illustrative EBITDA composition
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Sweden, CEE and Turkey: Illustrative EBITDA composition – Regulatory depreciation as important earnings component Illustrative EBITDA1 composition Regulatory Performance Additional Return on RAB Other earnings Timing effe
Slide 58: E.ON is positively geared towards rising interest rates and inflation
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials E.ON is positively geared towards rising interest rates and inflation Time horizon Impact of increasing interest rates and inflation • Allowed WACCs1/Return on Equity are usually adjusted only once per regulatory period S
Slide 59: Network charges represent only 25% of German power price
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Network charges represent only 25% of German power price Composition of average electricity price in Germany1 Development of the Renewable surcharge 2 Ct/kWh 6,5 Electricity Renewable Renewable surcharge 3,7 procurement,
Slide 60: Network operations in Germany and Sweden carbon neutral by 2030
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy Network operations in Germany and Sweden to be carbon neutral by 2030 Power and gas networks CO2 emissions in Germany and Sweden Measures to achieve carbon neutrality Network losses • Green network loss purchases 2
Slide 61: Preservation of biodiversity by corridor management
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Preservation of biodiversity by corridor management along power lines We foster a sustainable culture in our Energy Networks businesses 70,000 hectares along 13,000 kilometers of power lines will become biotopes and habit
Slide 62: Germany: Lower Return on Equity in 4th regulatory period
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Germany: Lower Return on Equity in 4th regulatory period Back-up Pro forma Pro forma Pro forma E.ON’s view on Return on Equity determination by BnetzA WACC calculation WACC 3rd WACC 4th regulatory period regulatory period
Slide 63: Germany: Building blocks of allowed revenues
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Germany: Building blocks of allowed revenues Back-up Schematic illustration for 2020 (power and gas) €bn 21.2 Gas (New) Totex indexed to CPI and subject Gas (Old) 3,4 to general and Thereof: Thereof: individual ~4.0 power
Slide 64: Germany: Upcoming regulatory events
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Germany: Upcoming regulatory events Back-up October End of June Q3 January December 31st October Determination of Submission of Determination of Start of new BNetzA’s Determination of return on equity cost appraisal to ef
Slide 65: Europe: Upcoming regulatory events
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Europe: Upcoming regulatory events Back-up April January January January January January Start of new Start of new Start of new Start of new Start of new Start of new regulatory regulatory regulatory regulatory regulatory
Slide 66: Customer Solutions
- Customer Soluti as... < P- .: eo
Slide 67: At a glance: Our ambitions for Customer Solutions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials At a glance: Our ambitions for Customer Solutions WE will increase our Energy Retail EBITDA from 2021 with a CAGR of 3-6% to €1.2-1.4bn by 2026 WE will increase our Energy Infrastructure Solutions EBITDA from 2021 with a
Slide 68: Customer Solutions portfolio best positioned to pioneer energy transition
E.ON’s Customer Solutions portfolio E.ON’s main Energy best positioned to markets and Retail pioneer the energy business areas Energy Sales Future Energy Home eMobility Solutions transition and meet Decentral increasing demand Energy for sustainability Infrastructure Energy Infrastructure Solutions
Slide 69: All sectors shifting towards green energy
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials All sectors shifting towards green energy Increasing global demand for green power and green gas across all sectors Buildings1 Industry1 Transport1 96 % 93 % 82 % 52 % 37 % 41 % 16 % 19 % 3% 2020 2030 2050 2020 2030 2050
Slide 70: Energy Retail represents first pillar of Customer Solutions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy Retail represents the first pillar of our Customer Solutions portfolio Energy Retail Decentral Infrastructure New Business Energy Sales Energy Infrastructure eMobility Infrastructure Supply of electricity and gas S
Slide 71: Energy Retail: EBITDA growth driven by Energy Sales and Retail Solutions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy Retail: EBITDA growth driven by excellence in Energy Sales and value creation in Retail Solutions 1 We will drive excellence in Energy Sales EBITDA Energy Retail €bn A Excellent procurement and risk management capa
Slide 72: Energy Sales: Procurement and risk management capabilities
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy Sales: Excellent procurement and risk management capabilities to manage current situation 1 E.ON’s margin well protected against current price increase in wholesale markets • Conservative long-term hedge policy A 2
Slide 73: Energy Sales: Digitally- and data-enabled excellence
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy Sales: Digitally- and data-enabled excellence further improves customer value 1 Our sales platforms will be constantly upgraded Delivering additional growth and value to increase efficiency and reduce cost to serve
Slide 74: Energy Sales: Increase focus on higher margin customers
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy Sales: We increase focus on higher margin customers 1 Volume sold to B2B customers Customer numbers1 TWh p.a. m A 300 ~50 ~50 B 14,0 C 150 10,0 4.1 11,8 D 10,3 2020 2024 9M 2021 2024 Turkey Other2 Benelux UK German
Slide 75: Energy Sales: Increase green tariff offerings
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy Sales: We increase green tariff offerings to attract new customers and ensure long-term retention 1 Our green footprint1 We are proactively contributing Our decarbonization promise to the decarbonization of our cus
Slide 76: Retail Solutions: Market driven by demand for sustainable solutions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Retail Solutions: Market driven by growing demand for sustainable solutions 1 Market size Future Energy Home 1,2 Market size eMobility Solutions 1,3 €bn €bn A ~25 >40 B C 2020 2024 2030 2020 2024 2026 D Gas boiler Heat pu
Slide 77: Retail Solutions: Strong track record across Europe
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Retail Solutions: Strong track record across Europe 1 Our footprint Our strong track record >1.8m Active service customers A 1 PV B2C market leader top 3 in all our active >85,000 PV and storage units installed 1 B market
Slide 78: Retail Solutions: Significant growth leveraging customer base
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Retail Solutions: Significant growth by leveraging our customer base 1 Revenue Future Energy Home Revenue eMobility Solutions €bn €bn A B 1.6-1.8 0.9-1.1 C 0.7-0.9 <0.1 D 2021 2026 2021 2026 Units installed1 >110,000 >250
Slide 79: Energy Infrastructure Solutions represents second pillar
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Energy Infrastructure Solutions represents the second pillar of our Customer Solutions portfolio Energy Retail Decentral Infrastructure New Business Energy Sales Energy Infrastructure eMobility Infrastructure Solutions (E
Slide 80: EIS: Capex driven EBITDA growth
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials EIS: Capex driven EBITDA growth due to increasing demand for sustainable infrastructure solutions Capex split Energy Infrastructure Faster than market growth EBITDA Energy Infrastructure Solutions: Solutions: 2022-2026 20
Slide 81: EIS: Strong market growth across Europe
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials EIS: Strong market growth across Europe Market trends Market development in EIS decarbonization solutions • Sustainability and CO2 reduction • Electrification and sector coupling • Community building • Digitization, drive
Slide 82: EIS: Best positioned for sustainability transition
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials EIS: E.ON best positioned to become change agent for the sustainability transition Our portfolio Customer segments Cluster for decarbonization solutions Heat Cooling Real estate Commercial City-quarter solutions based on
Slide 83: EIS: Strong footprint across Europe
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials EIS: E.ON Strong footprint across Europe Serving customers in Europe across # of plants 15 countries ~4,100 Revenue EBITDA €bn €bn Heat, cooling, steam 2.2-2.4 2.0 networks ~5,000 km 0.4-0.5 0.34 Heat, cooling and steam 2
Slide 84: EIS: State-of-the-art solutions drive customer value
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials EIS: State-of-the-art solutions drive customer value MIND Milano Recycling plant Högbytorp Biomass plant Hürth Project example (Italia) (Sweden) (Germany) EIS cluster Development of a mixed-use district, low- Transition t
Slide 85: EIS: Sustainable solutions improve CO2 footprint
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials EIS: Sustainable solutions strongly improve CO2 footprint Generation asset base today Generation asset base 2030 TWh TWh Fossil Renewables Fossil Renewables 23 % 40 % Gas 45 % Gas Recycled1 10 % No more coal based Coal 67
Slide 86: New business areas: Hydrogen and eMobility Infrastructure
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials New business areas for our Customer Solutions portfolio are Hydrogen and eMobility Infrastructure Energy Retail Decentral Infrastructure New Business Energy Sales Energy Infrastructure eMobility Infrastructure Solutions (
Slide 87: eMobility Infrastructure: The window of opportunity is now
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials eMobility Infrastructure: The window of opportunity is now Charging infrastructure is key but lagging behind Number of electric vehicles in Europe and available sites for electric vehicles sales eMobility infrastructure1
Slide 88: eMobility Infrastructure: Build, own and operate ultra fast charging
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials eMobility Infrastructure: Build, own and operate a public ultra fast charging network Business model eMobility charging footprint Private Public 4 Passenger vehicles 2 Sell Build Build Own 3 Operate Operate Commercial 2 2
Slide 89: eMobility Infrastructure: Top 3 positions via partnerships
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials eMobility Infrastructure: Reach top 3 positions across our markets via partnerships Business expects by 2030 to become the … … leading urban charging network … top 3 highway fast charging … main partner for electrificatio
Slide 90: Hydrogen: Future market demand across four segments
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Hydrogen: Future market demand to span across four segments EU final energy demand by fuel type Projected Hydrogen demand in Europe in 2040 TWh TWh ~13,100 Industry ~9,500 There are no alternatives to decarbonize industry
Slide 91: Hydrogen: Project activity underlines right to play
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Hydrogen: Our project activity underlines E.ON's right to play Our footprint across Germany with more than 50 projects Customers are increasingly demanding decarbonized gases • Potential customers with need for decarboniz
Slide 92: Hydrogen: Leading driver of EU hydrogen transition
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Hydrogen: E.ON will be a leading driver of the EU hydrogen transition Today Tomorrow (2025+) Future (2030+) Early movers generate onsite Clusters share benefit and risk Global green gas ecosystem H2 H2 H2 H2 H2 H2 H2 H2 H
Slide 93: Financials
e | Financials
Slide 94: New Financial Framework with extended outlook until 2026
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials New Financial Framework with extended outlook until 2026 providing more visibility Dividend per share (DPS) growth of up to 5% p.a. until 2026 €0.49 dividend for FY 20211 EBITDA2,3 2026: ~€7.8bn / ~4% CAGR4 2022-2030: Ave
Slide 95: We commit to annually grow the dividend, also beyond 2026
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials We commit to annually grow the dividend, also beyond 2026 Dividend per share € 0,46 0,47 0.491 0,43 0,30 0,21 2016 2017 2018 2019 2020 2021 2026 Growth beyond We delivered … … and will continue to deliver 1. Subject to 20
Slide 96: Earnings growth driven by all businesses
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Earnings growth driven by all businesses EBITDA1,2 €bn ~7.8 6.3-6.5 2021 2022 2026 Growth beyond 1. Adjusted for non-operating effects 2. Core business only (segments: Energy Networks, Customer Solutions, Corporate Functi
Slide 97: Earnings growth from RAB growth and Customer Solutions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Earnings growth as result of RAB growth and growth in Customer Solutions Energy Networks EBITDA1 Customer Solutions EBITDA1 €bn €bn 6.0-6.2 5-8% 1.9-2.2 5.0-5.2 1.4-1.6 CAGR 3-4% 0.7-0.8 CAGR 0.4-0.5 9-12% CAGR 1.0-1.1 1.
Slide 98: Additional efficiencies of ~€500m by 2026
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Additional efficiencies of ~€500m by 2026 on top of synergy delivery embedded in business Net synergy and additional efficiency targets 1 €m Embedded efficiencies: No additional separate plan, efficiencies embedded in bus
Slide 99: Highly attractive and sustainable long-term EPS growth
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Highly attractive and sustainable long-term EPS growth Earnings per Share 1,2 € ~0.90 0.56-0.63 Up to ~€100m4 refinancing benefits 2021 - 2026 2021 2022 2026 Growth beyond 1. Adjusted for non-operating effects 2. Core bus
Slide 100: 85-90% of investments are EU taxonomy aligned
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials 85-90% of E.ON’s investments are EU taxonomy aligned Investments 2021 Investments 2022-2026 €bn €bn 85-90% 85-90% ~4.9 1 EU taxonomy aligned2 ~271 EU taxonomy aligned2 Energy Networks Customer Solutions Other3 1. Cash-eff
Slide 101: Investments in Energy Networks and Customer Solutions
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Investments in Energy Networks and Customer Solutions with strong focus on infrastructure growth Energy Networks 2022-2026 Customer Solutions 2022-2026 €bn €bn ~70% ~221 ~51 energy infrastructure Power Gas Other Energy In
Slide 102: Investment opportunities following strict capital allocation criteria
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Investment opportunities following strict capital allocation criteria Strict capital allocation criteria Average Return on Capital Employed Focus on investments in Attractive risk return profile regulated networks and wit
Slide 103: We maintain the 4.8-5.2x debt factor target
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials We maintain the 4.8-5.2x debt factor target securing our strong BBB/Baa rating Debt factor ( Economic Net Debt / EBITDA) + ARO1 reduction + Optimized cash management Debt factor target of + Portfolio optimization €2-4bn 4
Slide 104: Balance between sources and uses of funds
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials A prudent balance between sources and uses of funds for sustainable long-term growth Sources of funds Sources and uses of funds 2022-2026 €bn High cash conversion and EBITDA growth lead to strong OCF1 ~2-4 Additional ~€2-
Slide 105: Sound funding strategy to tap bond markets
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Sound funding strategy to tap bond markets • Bond refinancing €2-4bn p.a. • Cash utilization of asset retirement obligations Volumes • Optimize maturity profile and interest costs 3-12 years preferred • Redemptions on any
Slide 106: Guidance overview
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Guidance overview €bn 2021 2026 CAGR 21-26 2022-2030 (5yr rolling)1 Core EBITDA2 6.3-6.5 ~7.8 ~4% - Energy Networks 5.0-5.2 6.0-6.2 3-4% - Customer Solutions 1.4-1.6 1.9 -2.2 5-8% - Energy Retail 1.0-1.1 1.2-1.4 3-6% - En
Slide 107: Regulated earnings split: 77% regulated or quasi-regulated
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Regulated earnings split: 77% earnings are Back-up regulated or quasi-regulated Group EBITDA 20201 €bn Regulated or quasi regulated earnings share of ~77% 6.9 • Network operations in countries with strong regulatory frame
Slide 108: Up to ~€100m refinancing benefits from bond maturities
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Up to~€100m refinancing benefits from Back-up bond maturities until 2026 Bond maturities as of end 9M 20211 €bn Volume Refinancing benefits of up to % Coupon ~€100m2 16.0 2021 – 2026 1.5 1.3 1.2 5.7% 0.0% 1.1 5.9% 5.6% 0.
Slide 109: Green Bond Framework overview
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Green Bond Framework overview: Back-up Framework structure in line with draft EU Green Bond Standard Process for selection of Management of Green assets and capex green assets and capex use-of-proceeds Reporting + Externa
Slide 110: Green Bond categories
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Green Bond categories Back-up Electricity Networks (DSO) Renewable Energy Energy Efficiency Clean Transportation Renewable energy production and Integrated on-site business and city EV charging stations and supporting All
Slide 111: Benchmark bonds of E.ON Group
Why E.ON? Sustainability Digital Energy Networks Customer Solutions Financials Benchmark bonds of E.ON Group as of Back-up November 23 , 20211 Volume in millions in Volume in millions in Issuer respective currency Coupon Maturity Issuer respective currency Coupon Maturity E.ON International Finance
Slide 112: Financial calendar and important links
Financial calendar and important links Financial calendar March 16, 2022 Annual Report 2021 May 11, 2022 Quarterly Statement: January – March 2022 May 12, 2022 2022 Annual Shareholder Meeting August 10, 2022 Half-Year Financial Report: January – June 2022 November 9, 2022 Quarterly Statement: Januar
Slide 113: E.ON Investor Relations Team
E.ON Investor Relations Team Analysts & Institutional Investors Event & Roadshow Management Verena Nicolaus-Kronenberg Björn Siggemann Vanessa Brinkmann Head of Investor Relations Manager Investor Relations Assistant Investor Relations verena.nicolaus-kronenberg@eon.com bjoern.siggemann@eon.com vane
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Slide 115: 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