Slide 1: Growth Focus Discipline – FY 2018 Results
Growth Focus Discipline Creating the future of energy FY 2018 Results 13th March 2019
Slide 2: Strong delivery of FY 2018 results
Strong delivery of FY 2018 results E.ON FY 2018 results Highlights Key Financials1 €m € bn Top end of 2018 guidance range achieved 3,074 2,989 €2.8- 19.2 Dividend 2018 increases >40% to €0.43/share €3.0bn Preparation of takeover of innogy fully on track 16.6 ! Upgrading network capex to fuel acceler
Slide 3: Continuous track record of delivery
Continuous track record of delivery E.ON FY 2018 results Deleveraging achieved – EBIT1 vs. guidance Adj. Net Income1 vs. guidance Significant reduction of END ~€10bn €3.1bn €3.1bn €3.0bn €1.5bn €26.3bn €1.4bn €2.8- €1.3- €2.8- €1.2- €3.0bn €1.5bn €2.7- €3.1bn €1.45bn €19.2bn €3.1bn €0.9bn €16.6bn €0
Slide 4: Dividend continues to grow
Dividend continues to grow E.ON FY 2018 results Dividend per share growth 2018 & 2019: Fixed Dividend Commitment to annual DPS growth €0.462,3 €0.431,3 €0.30 €0.21 FY 2016 FY 2017 FY 2018 FY 2019 Future Dividend Dividend Dividend Dividend Dividends 4 1. Fixed for FY 2018 (paid in 2019) 2. Fixed for
Slide 5: Energy Networks – Proven efficiency leadership
Energy Networks – Proven efficiency leadership E.ON FY 2018 results Regulatory review in German power networks – Performance culture in practice All four E.ON DSOs with efficiency Individual 50% of E.ON DSOs even receive an score of 100% vs. 94% industry efficiency factor additional efficiency bonus
Slide 6: Upgrading long-term network capex growth
Upgrading long-term network capex growth E.ON FY 2018 results Energy networks capex (€ m) 1.9 Additional ~€100m p.a. Cautious planning for long-term capex run-rate 1.8 • Main driver is additional replacement investments 1.7 • Conservative assumptions on Renewables and E-mobility roll-out 1.6 1.4 Dis
Slide 7: Accelerating power RAB growth
Accelerating power RAB growth E.ON FY 2018 results Germany Sweden Czech Republic Power RABRAB 1 +30% Power RAB (€ m) 1 Power RAB (€ m) Power (€ m) 1,2 +15% +25% Targeting upper end of growth range New growth range New New growth range New +25% +20% +10% +25-30% +11% +20-25% New +15% +16% + 8-10% +8%
Slide 8: Customer Solutions with profitable customer growth outside UK
Customer Solutions with profitable customer growth outside UK Customer numbers EBIT Performance programs (upgraded) ~22m ~22m ~€120m impact €479m Cost €413m ~£150m impact UK Impact CS UK Germany +2% +17% Other +1% CS ex UK 2017 2018 2017 2018 2018 2019 2020 >2020 Growing customer base outside UK Imp
Slide 9: Renewables – Performance culture in practice
Renewables – Performance culture in practice E.ON FY 2018 results EBIT1 delivery 2018 Project delivery 2018 +15% Rampion €521m Offshore wind (UK) Arkona 400 MW Offshore wind (GER) €454m 385 MW FY 2017 FY 2018 Downsides from very low wind yields and roll-off of support schemes in the US over-compensa
Slide 10: Takeover of innogy progressing well
Takeover of innogy progressing well E.ON FY 2018 results • E.ON filed official notification with EU Commission end of January Antitrust approval • EU Commission initiated Phase II investigations on 8th March process • Approvals for RWE part of transaction already received after Phase I • Fully on tr
Slide 11: On track to successfully conclude strategic transformation journey
On track to successfully conclude strategic transformation journey E.ON’s guiding principles Unique strategic position Customer-led Digitization Operational Capital excellence discipline • Focus on regulated Position of strength networks and infrastructure-like & pace- setting customer solutions • P
Slide 12: EBIT development solid despite operational challenges
EBIT development solid despite operational challenges E.ON FY 2018 results EBIT1 FY 2018 vs. FY 2017 Key FY Effects €m Energy • Germany: positive one-off effects in Q2 & Q3 FY 2017 3,074 Networks +/– 2018, reversal of regulatory effects, disposal gas network HH, new regulatory period gas Energy -190
Slide 13: Adj. Net Income up 5% driven by lower interest expenses
Adj. Net Income up 5% driven by lower interest expenses E.ON FY 2018 results FY 2018 €m Group EBIT1 2,989 Interest on ~€ 85m improvement yoy mainly due to refinancing fin. assets/ -588 benefits, partly compensated by lower interest income liabilities2 from asset portfolio Other interest -86 expenses
Slide 14: END decreases mainly due to sale of Uniper stake
END decreases mainly due to sale of Uniper stake E.ON FY 2018 results END1 FY 2018 vs. FY 2017 € bn +2.7 AROs Pension provisions -10.6 Net financial position Liquidation of pension scheme -10.3 in Q1 2018 results in reduction of pension provisions – limited effect on END Sale of Uniper stake -3.3 -3
Slide 15: Capex split 2019 & 2020
Capex split 2019 & 2020 E.ON FY 2018 results Capex1 2019 Capex1 2020 Increase in capex drives Growth long-term EBIT growth ~€3.6bn ~€3.7bn 1.1 1.1 0.8 0.8 Capex focused on Energy Networks and Focus infrastructure-like Customer Solutions Strict adherence to capital 1.7 1.8 Discipline return targets (
Slide 16: Group guidance for FY 2019
Group guidance for FY 2019 E.ON FY 2018 results Guidance FY 2019 (€ bn) Guidance FY 2019 (€ bn) Dividend2 2019 (€/share) 2.9 – 3.1 0.46 1.4 – 1.6 Adjusted Net Income1 Proposed dividends2 EBIT1 Actuals FY 2018 (€ bn) Actuals FY 2018 (€ bn) Dividend2 2018 (€/share) 0.43 3.0 1.5 16 1. Adjusted for non
Slide 17: Segment EBIT guidance FY 2019
Segment EBIT1 guidance FY 2019 E.ON FY 2018 results Energy Networks 2018 2019 Customer Solutions 2018 2019 €1.8bn €0.4bn +• Germany: Further increase in RAB, efficiency scores +• Germany & UK: Restructuring charges in 2018 +• Sweden: Power tariff increases (already implemented) –• UK: Regulatory int
Slide 18: E.ON FOCUS – Framework for 2018-2020
E.ON FOCUS – Framework for 2018-2020 Our basis for steering the company Capital Structure Strong BBB/Baa Return ROCE1 Dividend 8 – 10 % EBIT3 EPS3 Annual Group Group DPS growth + 3-4% (CAGR) + 5-10% (CAGR) Fixed dividend 2019: Cash €0.465 Cash conversion rate2 ≥ 80 % Executive Compensation Closely l
Slide 19: FY 2018 – Financial Appendix
Growth Focus Discipline FY 2018 – Financial Appendix E.ON standalone
Slide 20: Financial Highlights
Financial Highlights E.ON FY 2018 results €m FY 2017 FY 2018 % YoY Sales 37,965 30,253 -20 1 EBITDA 4,955 4,840 -2 EBIT 1 3,074 2,989 -3 1 Adjusted Net Income 1,427 1,505 +5 OCF bIT -2,235 4,087 – Investments 3,308 3,523 +6 Economic Net Debt ² -19,248 -16,580 +14 1. Adjusted for non operating effect
Slide 21: 84% Cash Conversion Rate
84% Cash Conversion Rate2 E.ON FY 2018 results FY 2018 € bn 84% 4.8 0.0 4.1 -0.8 -0.6 2.9 -0.6 -3.5 -0.7 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 effec
Slide 22: Segments: Energy Networks
Segments: Energy Networks E.ON FY 2018 results Energy Networks Highlights EBIT1 € m • Germany -9% + One-off effects in Q2 & Q3 2018 2,034 – Reversal of regulatory effects 1,844 – Disposal of gas network Hamburg, 3rd regulatory period gas Germany 1,030 895 • Sweden + Power tariff increase Sweden 474
Slide 23: Segments: Customer Solutions
Segments: Customer Solutions E.ON FY 2018 results Customer Solutions Highlights EBIT1 € m • Germany Sales -14% + Price increases in 2017 479 – Restructuring charges 413 • UK Germany Sales 102 160 – Restructuring charges, competitive dynamics UK 248 – Regulatory effects, incl. price caps (PPM2, vulne
Slide 24: Segments: Renewables
Segments: Renewables E.ON FY 2018 results Renewables Highlights EBIT1 € m +15% • Offshore/Other + UK: Capacity additions (Rampion) 521 – Adverse wind conditions 454 • Onshore/Solar 379 + US: Capacity additions (Bruenning’s Breeze, Radford’s Run) Offshore/Other 337 + SE: Book gain from partnering tra
Slide 25: Non-Core business
Non-Core business E.ON FY 2018 results Non-Core Highlights EBIT1 € m • PreussenElektra +/– – One-off effects -3% – Lower achieved power prices 393 382 + Higher volumes due to plant outages in 2017 • Generation Turkey Preussen Elektra 506 399 + Book loss from asset sale in Q1 2017 + Operational impro
Slide 26: Adjusted Net Income
Adjusted Net Income E.ON FY 2018 results €m FY 2017 FY 2018 % YoY EBITDA 1 4,955 4,840 -2 Depreciation/amortization -1,881 -1,851 +2 1 EBIT 3,074 2,989 -3 Economic interest expense (net) -744 -674 +9 EBT 1 2,330 2,315 -1 1 Income Taxes on EBT -614 -562 +8 1 % of EBT -26% -24% - Non-controlling inter
Slide 27: Reconciliation of EBIT to IFRS Net Income
Reconciliation of EBIT E.ON FY 2018 results to IFRS Net Income €m FY 2017 FY 2018 % YoY EBITDA 1 4,955 4,840 -2 Depreciation/Amortization/Impairments -1,881 -1,851 +2 1 EBIT 3,074 2,989 -3 Reclassified businesses of Renewables -440 -513 -17 Interest result 33 -713 - Net book gains 375 857 +129 Restr
Slide 28: Cash effective investments by unit
Cash effective investments E.ON FY 2018 results by unit €m FY 2017 FY 2018 % YoY Energy Networks 1,419 1,597 +13 Customer Solutions 595 637 +7 Renewables 1,225 1,037 -15 Corporate Functions & Other 53 86 +62 Consolidation 2 -3 - Non-Core 14 169 - Investments 3,308 3,523 +6 28
Slide 29: Economic Net Debt
Economic Net Debt1 E.ON FY 2018 results €m 31 Dec 2017 31 Dec 2018 Liquid funds 5,160 5,423 Non-current securities 2,749 2,295 Financial liabilities -13,021 -10,721 Adjustment FX hedging ² 114 -28 Net financial position -4,998 -3,031 Provisions for pensions -3,620 -3,261 Asset retirement obligations
Slide 30: Economic interest expense (net)
Economic interest expense (net) E.ON FY 2018 results Difference €m FY 2017 FY 2018 (in € m) Interest from financial assets/liabilities -673 -588 +85 Interest cost from provisions for pensions and similar provisions -82 -62 +20 Accretion of provisions for retirement obligation and similar provisions
Slide 31: Financial Liabilities
Financial Liabilities E.ON FY 2018 results Liquidity Sources (as of FY 2018) Maturity profile (as of end FY 2018)1 € bn € bn 4.8 Liquid funds 5.432 Non-current securities 2.295 Syndicated loan (undrawn) 2.75 1.4 1.1 € / $ Commercial Paper 0.8 10 / 10 0.6 programs (undrawn) 0.4 0.1 0.0 Acquisition fa
Slide 32: Funding plan
Funding plan E.ON FY 2018 results Indicative funding needs Financing considerations Funding public takeover offer and purchase of € bn RWE’s loan to innogy is covered by existing cash 4 and RWE’s payment 2 2019 funding needs: expected to be €2-3 billion 0 €1.75 billion undrawn acquisition faci
Slide 33: E.ON 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 34: Financial calendar & important links
Financial calendar & important links Financial calendar May 13, 2019 Quarterly Statement: January – March 2019 May 14, 2019 2019 Annual Shareholders Meeting August 7, 2019 Half-Year Financial Report: January – June 2019 November 13, 2019 Quarterly Statement: January – September 2019 March 25, 2020 A
Slide 35: 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