Slide 1: Focused Disciplined Striving – 9M 2016 results
Focused Disciplined Striving 9M 2016 results 9 November 2016
Slide 2: E.ON transformation progressing
E.ON transformation progressing Q3 2016 Highlights Solid Q3 YTD performance & FY16 guidance confirmed €200m additional proceeds from M&A earn-out agreement1 Successful listing of Uniper- market valuation leads to impairment charge Cabinet approval of draft KFK law Efficiency program initiated- secur
Slide 3: KFK implementation shaping up
KFK implementation shaping up Payment amounts1 for E.ON Next steps € bn Legislative process started 9.8 9.8 Risk Additional Cabinet decision on 19 Oct 2.6 2.0 premium premium Decision by Bundestag (Nov/Dec) Consent by Bundesrat (Dec) Base 7.8 amount 7.2 Current provisions Government target
Slide 4: Solid EBIT despite lower Networks contribution
Solid EBIT despite lower Networks contribution EBIT1 9M 2016 vs. 9M 2015 €m 2,418 +120 103 140 2,282 256 85 2,162 63 61 9M 2015 Divested 9M 2015 Energy Customer Renewables Corp. Preussen 9M 2016 Operations w/o div. Networks Solutions Functions & Elektra w/o div. operations Other, operations Consolid
Slide 5: Underlying Net Income strongly up
Underlying Net Income strongly up 9M 2016 € bn Group EBIT1 2.3 Interest on 9% YoY improvement due to bond repayment in fin. assets/ 0.5 January liabilities2 11% YoY weakening driven by valuation effects on Other interest other long-term provisions and lower construction 0.7 expenses interest capital
Slide 6: The Spin-off significantly impacted our IFRS equity
The Spin-off significantly impacted our IFRS equity IFRS equity € bn 19.1 1.1 1.0 10.3 Excluding 16.4 KFK effects 3.2 5.4 0.4 5.0 2.6 FY15 Dividends Income from Loss from Pensions 9M 2016 cont. ops discont. ops Shareholders’ equity Minorities 6
Slide 7: Strong cash flow improves net financial position
Strong cash flow improves net financial position Net Financial Position 9M 2016 vs. FY 2015 € bn -2.0 3.0 0.0 -1.1 0.6 0.4 -0.1 NFP FY 2015 OCF Investments Dividend Build & Sell / Others NFP 9M 2016 Divestment -3.3 Provisions for pensions -5.9 -17.9 Asset retirement obligations -18.1 1 = -21.3 Econo
Slide 8: 2016 Outlook confirmed
2016 Outlook confirmed1 €4.6-5.0bn EBITDA2 €2.7-3.1bn EBIT2 Underlying €0.6-1.0bn Net Income2 1. In transition year 2016 including at-equity contribution of Uniper on an underlying basis after spin-off & 8 deconsolidation; as of 2017 without Uniper contribution 2. Adjusted for non operating effects
Slide 9: E.ON Focus – our basis for steering the company
E.ON Focus – our basis for steering the company E.ON FOCUS – medium-term framework Capital structure BBB+ / Baa1 Profit Cash Return Growth Group EBIT1 Cash conversion ROCE3 EPS4 rate2 ≥ 80 % 8 – 10 % ≥ 5 - 10 % p.a. Dividend payout 40 – 60 % of Underlying Net Income closely linked to EPS and relativ
Slide 10: Backup
Backup
Slide 11: Financial Highlights
Financial Highlights €bn 9M 2015 9M 2016 % YoY Sales 32.0 28.2 -12 1 EBITDA 4.2 3.6 -13 EBIT 1 2.4 2.3 -4 Underlying net income 1 0.7 0.6 -8 OCF bIT 3.4 3.8 +12 Investments 2.0 2.0 +1 Economic net debt ² -21.3 -23.6 +11 11 1. Adjusted for non operating effects 2. Pro-forma END of Future E.ON
Slide 12: Underlying Net Income
Underlying Net Income €m 9M 2015 9M 2016 % YoY EBITDA 1 4,182 3,640 -13 Depreciation/amortization -1,764 -1,329 -25 EBIT 1 2,418 2,311 -4 Economic interest expense (net) -1,099 -1,118 +2 EBT 1 1,319 1,193 -10 Income Taxes on EBT 1 -444 -387 -13 % of EBT 1 -34% -32% - Non-controlling interests -176 -
Slide 13: From EBITDA to Net Income
From EBITDA to Net Income €m 9M 2015 9M 2016 % YoY EBITDA 1 4,182 3,640 -13 Depreciation/Amortization/Impairments -1,764 -1,329 -25 EBIT 1 2,418 2,311 -4 Economic interest expense (net) -1,099 -1,118 +2 Net book gains 349 1 -100 Restructuring -250 -221 -12 Mark-to-market valuation of derivatives -20
Slide 14: Segments: Energy Networks
Segments: Energy Networks Energy Networks Highlights EBIT1 € m -5% Germany: 1,259 - Positive one-off effects in 9M 2015 1,196 CEE & Turkey 249 Sweden: 270 - Start of the new regulatory period Sweden 252 288 - 9M 2015 burdened by storm costs CEE: - Positive effects in Czech Republic, Turkey Ger
Slide 15: Segments: Customer Solutions
Segments: Customer Solutions Customer Solutions Highlights EBIT1 € m +13% Germany: - Margin decrease and positive one-off effects in 548 487 9M 2015 177 UK: Other 121 - Lower ECO² spending offset by FX weakening in UK 156 Q3 2016 following Brexit decision 227 Other: Germany 210 - Normalized wi
Slide 16: Segments: Renewables
Segments: Renewables Renewables Highlights EBIT1 € m +38% Offshore: - Positive contribution from Humber & 309 Amrumbank, book gain from Arkona stake sale 224 (Q2 2016) - Negative FX effects in Q3 2016 following Brexit Offshore/Other 82 243 decision Onshore: Onshore/Solar 142 - Positive one-off e
Slide 17: Segments: PreussenElektra
Segments: PreussenElektra PreussenElektra Highlights EBIT1 € m -23% Lower volumes due to Grafenrheinfeld shut-down 448 Lower achieved power prices compensated by lower nuclear fuel tax 345 9M 2015 9M 2016 Hedged Prices Germany (€/MWh) €m PreussenElektra 2016 100% 37 9M 2015 9M 2016 % YoY Revenue
Slide 18: High CCR due to seasonal effects
High CCR due to seasonal effects 9M 2016 € bn CCR2: 104% 0.7 3.8 3.6 1.4 0.1 0.3 1.0 0.6 0.5 3.0 2.0 1.7 EBITDA1 Non-cash Provision Changes Payments OCF bIT Interest Tax OCF Divest CAPEX FCF effective utilization in NOWC related to Payments Payments EBITDA non-op items earnings 18 1. Adjusted for no
Slide 19: Cash effective investments by unit
Cash effective investments by unit €m 9M 2015 9M 2016 % YoY Energy Networks 763 866 +13 Customer Solutions 286 392 +37 Renewables 769 637 -17 Corporate Functions & Other 128 78 -39 Consolidation 0 -4 - PreussenElektra 10 12 +20 Investments 1,956 1,981 +1 19 1. Adjusted for non operating effects
Slide 20: Economic Net Debt
Economic Net Debt1 €m 31 Dec 2015 30 Sept 2016 Liquid funds 7,829 9,308 Non-current securities 4,536 4,540 Financial liabilities -15,790 -13,878 Adjustment FX hedging ² 218 452 Net Uniper Loan ³ 3,079 0 Net financial position -129 422 Provisions for pensions -3,281 -5,921 Asset retirement obligation
Slide 21: Financial Liabilities
Financial Liabilities Split Financial Liabilities1 Maturity profile (as of end 9M 2016)2 € bn € bn 4.3 30 Sept 2016 Bonds -11.8 in EUR -4.7 in GBP -4.0 2.7 in USD -2.7 EUR in CHF 0.0 2.3 GBP in SEK 0.0 USD in JPY -0.2 YEN 1.4 Other in other denominations -0.2 1.1 Promissory notes -0.4 Commercial pap
Slide 22: Economic interest expense (net)
Economic interest expense (net) Difference €m 9M 2015 9M 2016 (in € m) Interest from financial assets/liabilities -513 -467 +46 Interest cost from provisions for pensions and similar provisions -59 -64 -5 Accretion of provisions for retirement obligation and similar provisions -606 -647 -41 Construc
Slide 23: E.ON Investor Relations contacts
E.ON Investor Relations contacts 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 Investor Relations martina.burge
Slide 24: Financial calendar & important links
Financial calendar & important links Financial calendar March 15, 2017 Annual Report 2016 May 10, 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 2
Slide 25: 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