Slide 1: 2014 first quarter results
2014 first quarter results 13 May 2014
Slide 2: First quarter 2014 financial highlights
First quarter 2014 financial highlights EBITDA1: €3.2bn (-12%) EBIT1: €2.3bn (-17%) Underlying net income1: €1.2bn (-13%) Underlying EPS1 2: 0.64 €/share Operating cash flow: €2.6bn (+63%) Economic net debt: -€31.1bn Outlook unchanged EBITDA range: €8.0 – 8.6bn Underlying net incom
Slide 3: First quarter 2014 EBITDA development
First quarter 2014 EBITDA development 1,2 €bn Q1 2013 3.6 E&P (North sea volumes) 0.2 E.ON 2.0 0.1 Renewables (EC&R) 0.1 Disposals -0.3 Power price and volume effect -0.1 German regulation -0.1 Region Czechia -0.1 Non-EU Countries -0.1 Other -0.1 Q1 2014 3.2 1. Adjusted for extraordinary effects 2 2
Slide 4: First quarter 2014 underlying net income
First quarter 2014 underlying net income €m Q1 2013 Q1 2014 % YoY EBITDA 1 3,600 3,162 -12 Depreciation/amortization recognized in EBIT 1 -841 -872 - EBIT 1 2,759 2,290 -17 Economic interest expense (net) -474 -450 - EBT 1 2,285 1,840 -19 Income taxes on EBT 1 -695 -493 - % of EBT 1 30 27 - Non-cont
Slide 5: First quarter 2014 operating cash flow development
First quarter 2014 operating cash flow development1 €bn Q1 2013 operating cash flow 1.6 EBITDA -0.4 Sales business: Lower receivables 1.1 Lower gas storage withdrawal -1.0 Distribution business Germany 0.6 Disposal German regional utilities 0.2 Tax payments 0.2 Other 0.3 Q1 2014 operating cash flow
Slide 6: First quarter 2014 economic net debt development
First quarter 2014 economic net debt development €bn December 31, 2013 -21.7 -10.5 -32.2 Investments -0.7 Net financial position Provisions and other Other -1.5 Divestments +0.8 Operating cash flow +2.6 Pension provisions -0.1 March 31, 2014 -21.7 -9.4 -31.1 5
Slide 7: 2014 outlook
2014 outlook EBITDA1 Underlying net income1 €9.4bn €8.0-8.6bn €2.2bn €1.5-1.9bn 2013A 2014E 2013A 2014E 6 1. Adjusted for extraordinary effects
Slide 8: Backup
Backup 7
Slide 9: First quarter 2014 financial highlights
First quarter 2014 financial highlights €m Q1 2013 Q1 2014 % YoY Sales 35,878 31,820 -11 EBITDA 1 3,600 3,162 -12 EBIT 1 2,759 2,290 -17 Underlying net income 1 1,406 1,220 -13 Operating cash flow 1,620 2,643 +63 Investments 915 693 -24 Economic net debt -32,218 2 -31,137 +1,0813 1. Adjusted for ext
Slide 10: First quarter 2014 EBITDA and EBIT by unit
First quarter 2014 EBITDA and EBIT by unit €m EBITDA 1 EBIT 1 Q1 2013 Q1 2014 % YoY Q1 2013 Q1 2014 % YoY Generation 893 916 +3 686 694 +1 Renewables 475 569 +20 375 465 +24 Global Commodities 212 -41 - 177 -66 - Exploration & Production 177 339 +92 83 192 - Germany 822 630 -23 638 477 -25 Other EU
Slide 11: From EBITDA to net income (1/2)
From EBITDA to net income (1/2) €m Q1 2013 Q1 2014 % YoY EBITDA 1 3,600 3,162 -12 Depreciation/Amortization/Impairments -841 -872 - EBIT 1 2,759 2,290 -17 Economic interest expense (net) -474 -450 - Net book gains 1,021 193 - Restructuring and cost-management expenses -123 -70 - Mark-to-market valua
Slide 12: From EBITDA to net income (2/2)
From EBITDA to net income (2/2) €m Q1 2013 Q1 2014 % YoY Income/Loss from continuing operations before 3,075 1,558 -49 income taxes Income taxes -726 -653 - Non-controlling interests -183 -143 - Net income/loss attributable to shareholders of E.ON 2,166 762 -65 SE 11
Slide 13: Generation
Generation €m EBITDA 1 EBIT 1 Q1 2013 Q1 2014 % YoY Q1 2013 Q1 2014 % YoY Nuclear 681 665 -2 626 602 -4 Steam 189 231 +22 103 139 +35 CCGT 5 51 - -59 -12 - Other/Consolidation 18 -31 - 16 -35 - Total 893 916 +3 686 694 +1 Main EBITDA effects (in €bn) Nuclear (+/-0) Mainly driven by lower volumes i
Slide 14: Renewables
Renewables €m EBITDA 1 EBIT 1 Q1 2013 Q1 2014 % YoY Q1 2013 Q1 2014 % YoY Hydro 251 240 -4 222 210 -5 Wind/Solar/Other 224 329 47 153 255 67 Total 475 569 20 375 465 24 Main EBITDA effects (in €bn) Hydro (+/-0) Lower volumes due to disposal of hydro assets as part of the asset swap with Verbund AG
Slide 15: Global Commodities
Global Commodities €m EBITDA 1 EBIT 1 Q1 2013 Q1 2014 % YoY Q1 2013 Q1 2014 % YoY Coal/Oil/Freight/LNG -6 9 - -6 9 - Power and Gas 197 -64 - 163 -88 - Infrastructure/Other 21 14 -33 20 13 -35 Total 212 -41 - 177 -66 - Main EBITDA effects (in €bn) Power and Gas (-0.3) Deconsolidation of Földgaz (-0
Slide 16: Exploration & Production
Exploration & Production €m EBITDA 1 EBIT 1 Q1 2013 Q1 2014 % YoY Q1 2013 Q1 2014 % YoY Total 177 339 +92 83 192 +131 Main EBITDA effects (in €bn) North Sea fields (+0.2) Higher volumes mainly driven by Skarv moving to plateau production (+0.2) Yushno Russkoje (+/-0) Higher prices in Ruble (to l
Slide 17: Germany
Germany €m EBITDA 1 EBIT 1 Q1 2013 Q1 2014 % YoY Q1 2013 Q1 2014 % YoY Distribution 686 475 -31 522 339 -35 Non-regulated/Other 136 155 +14 116 138 +20 Total 822 630 -23 638 477 -25 Main EBITDA effects (in €bn) Distribution Networks (-0.2) Deconsolidation of three regional utilities (-0.2) Lower
Slide 18: Other EU Countries
Other EU Countries €m EBITDA 1 EBIT 1 Q1 2013 Q1 2014 % YoY Q1 2013 Q1 2014 % YoY Distribution 372 284 -24 266 179 -33 Sales 396 341 -14 376 320 -15 Other/Consolidation 152 132 -13 119 87 -27 Total 920 757 -18 761 586 -23 Main EBITDA effects (in €bn) Distribution Networks (-0.1) Mainly due to lowe
Slide 19: Non-EU Countries
Non-EU Countries €m EBITDA 1 EBIT 1 Q1 2013 Q1 2014 % YoY Q1 2013 Q1 2014 % YoY Russia 200 131 -35% 158 95 -40% (in Mio Ruble) (8,039) (6,258) ( -22%) (6,336) (4,547) ( -28%) Other Non-EU -7 -26 - -7 -26 - countries Total 193 105 -46% 151 69 -54% Main EBITDA effects (in €bn) Russia (-0.1) Currency
Slide 20: Cash effective investments by unit
Cash effective investments by unit €m Q1 2013 Q1 2014 % YoY Generation 126 152 +21 Renewables 109 198 +82 Global Commodities 47 18 -62 Exploration & Production 108 14 -87 Germany 310 83 -73 Other EU Countries 153 133 -13 Non-EU Countries 51 83 +63 Group Management / Consolidation 11 12 +9 Investment
Slide 21: Economic net debt
Economic net debt €m 31 Dec 2013 31 Mar 2014 Liquid funds 7,814 6,812 Non-current securities 4,444 4,575 Financial liabilities -22,724 -20,697 Adjustment FX hedging 1 -46 -55 Net financial position -10,512 -9,365 Provisions for pensions -3,418 -3,523 Asset retirement obligations 2 -18,288 -18,249 Ec
Slide 22: Financial liabilities of the E.ON Group
Financial liabilities of the E.ON Group Q1 2014 in € billion Maturity profile (as of Q1 2014)3 31 Mar 2014 31 Dec 2013 Bonds1 15.9 18.1 in EUR 8.9 10.4 5,0 in GBP 4.1 4.4 4,0 in USD 2.2 2.2 3,0 in CHF 0.2 0.6 2,0 in SEK 0.1 0.1 1,0 in JPY 0.3 0.3 0,0 2014 2015 2016 2017 2018 2019 2020 2021 ≥2022 oth
Slide 23: Economic interest expense (net)
Economic interest expense (net) Difference €m Q1 2013 Q1 2014 (in €m) Interest from financial assets/liabilities -242 -210 +32 Interest cost from provisions for pensions and similar provisions -39 -26 +13 Accretion of provisions for retirement obligation and other provisions -240 -205 +35 Capitalize
Slide 24: E&P - Oil & Gas production
E&P - Oil & Gas production m boe Q1 2013 Q1 2014 % YoY Skarv 1.2 3.8 +217 Njord/Hyme 1.0 0 -100 Elgin-Franklin 0.1 0.2 +156 Babbage 0.2 0.3 +82 Huntington 0 0.5 - Rita 0 0.2 - Total North Sea 2.9 5.5 +87 Yuzhno Russkoje 10.0 9.8 -2 Total 13.0 15.3 +18 23
Slide 25: Outright hedging (Central Europe & Nordic)
Outright hedging (Central Europe & Nordic) €/MWh ~55 2014 ~44 ~46 2015 ~37 ~40 2016 ~34 0% 20% 40% 60% 80% 100% Central Europe Nordic 24
Slide 26: 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 27: Reporting calendar & important links
Reporting calendar & important links Reporting calendar August 13, 2014 Interim Report II: January – June 2014 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 Meet
Slide 28: 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