Slide 1: 2015 first half results
2015 first half results 12 August 2015
Slide 2: Well underway to deliver full year 2015 outlook
Well underway to deliver full year 2015 outlook First half results Outlook EBITDA1 EBITDA1 €4,921m €4,273m €8.3bn2 €7.0-7.6bn H1 2014 H1 2015 FY 2014A FY 2015E Underlying net income1 Underlying net income1 €1,476m €1,165m €1.6bn €1.4-1.8bn H1 2014 H1 2015 FY 2014A FY 2015E 1 1. Adjusted for extraord
Slide 3: Spin-off update – From conception to execution
Spin-off update – From conception to execution Carve-out work stream Highlights To operationally separate Future E.ON Roughly 1,300 legal entities allocated and Uniper more than 4,000 milestones have been identified New organizational structures for both companies determined Implementation t
Slide 4: Spin off – Key milestones
Spin off – Key milestones Q2 2015 Organization & 1 Jan 2016 steering concepts for Both companies May 2016 both companies operationally defined, e.g. independent AGM invitation 8 Jun 2016 Organizational Carve-out Detailed financial set-up and effective & legal AGM decision H2 2016 segmentation
Slide 5: Continue to strengthen our offshore position
Continue to strengthen our offshore position Humber Gateway Amrumbank West 219 MW 288 MW COD planned COD planned for September for autumn Two months Close to 90% of ahead of turbines already schedule and installed below budget Rampion Arkona 400 MW and 116 turbines Up to maximum capa
Slide 6: Finalizing projects and starting to reap the fruits
Finalizing projects and starting to reap the fruits Beresovskaya Maasvlakte 800 MW 1100 MW COD planned for September Highly flexible plant Very low fuel costs Going forward… Limited maintenance capex No major new growth project in conventional generation except legacy project Datteln 4
Slide 7: Regulatory and political developments
Regulatory and political developments European Emissions Trading Scheme White Book in Germany Market Stability Reserve adopted in July 2015 Instrument will start in January 2019 Policy discussions on ETS now shifting to a longer-term reform of the scheme EU ETS CO2 prices (1-year forwards) 10
Slide 8: Key takeaways
Key takeaways Execution of spin-off preparation well on track and many important milestones already achieved Finalizing important projects and entering the harvesting phase Preparing further organic growth opportunities for future E.ON Visual of One2two project 7
Slide 9: 2015 first half results
2015 first half results Michael Sen, CFO August 12, 2015
Slide 10: Summary
Summary Business environment Solid delivery in H1 2015: Coal/oil - stabilizing at low levels Outlook (fully confirmed): EBITDA (€7.0 – 7.6bn) and underlying net income (€1.4 – 1.8bn) outlook ranges confirmed as well as fixed dividend commitment at 0.5€/share Earnings: EBITDA (-13%) and underlyin
Slide 11: EBITDA development first half 2015
EBITDA development first half 2015 First half 2015 EBITDA development 1,2 (in €bn) H1 2014 4.9 Region Germany 0.1 Power portfolio -0.3 E&P -0.1 Disposals -0.1 Other -0.2 H1 2015 4.3 €bn Volume and price effects in Power and E&P dominate EBITDA development 10 1. Adjusted for extraordinary effects 2.
Slide 12: Underlying net income first half 2015
Underlying net income first half 2015 €m H1 2014 H1 2015 % YoY EBITDA 1 4,921 4,273 -13 Depreciation/amortization recognized in EBIT 1 -1,737 -1,620 - EBIT 1 3,184 2,653 -17 Economic interest expense (net) -916 -801 - EBT 1 2,268 1,852 -18 Income taxes on EBT 1 -605 -498 - % of EBT 1 27 27 - Non-con
Slide 13: Operating cash flow reconciliation H1 2015
Operating cash flow reconciliation H1 2015 First half 2015 EBITDA1 – OCF Reconciliation (in €bn) EBITDA 1 4.3 Non-cash effective EBITDA items +1.0 Cash-effective EBITDA 5.3 Provision utilization -1.2 Working capital 0.5 movements Tax, interest & other -0.4 2 OCF after interest and tax 4.2 Strong cas
Slide 14: Economic net debt development first half 2015
Economic net debt development first half 2015 First half 2015 economic net debt development (in €bn) END END Provisions NFP 2014 OCF CAPEX B&S Dividend Divest Pensions Others 2015 NFP Provisions Pensions Pensions: -5,6 bn -4,4 bn ARO: ARO: -19 bn -19,2 bn Cash Balance: 1,9 bn -23,5 -24,6 1,2 4,2 2,4
Slide 15: 2015 outlook - confirmed
2015 outlook - confirmed EBITDA1 Underlying net income1 €8.3bn €7.0-7.6bn €1.6bn €1.4-1.8bn 2014A 2015E 2014A 2015E 14 1. Adjusted for extraordinary effects
Slide 16: Backup
Backup 15
Slide 17: First half 2015 financial highlights
First half 2015 financial highlights €m H1 2014 H1 2015 % YoY Sales 54,778 57,302 5 1 EBITDA 4,921 4,273 -13 EBIT 1 3,184 2,653 -17 Underlying net income 1 1,476 1,165 -21 Operating cash flow 3 5,478 4,226 -23 2 Investments 1,694 1,585 -6 Economic net debt -33,394 -29,344 -12 1. Adjusted for extraor
Slide 18: First half 2015 EBITDA and EBIT by unit
First half 2015 EBITDA and EBIT by unit €m EBITDA 1 EBIT 1 H1 2014 H1 2015 % YoY H1 2014 H1 2015 % YoY Generation 1,182 839 -29 724 456 -37 Renewables 870 720 -17 654 542 -17 Global Commodities 220 274 25 172 227 32 Exploration & Production 668 543 -19 361 198 -45 Germany 1,016 1,074 6 710 780 10 Ot
Slide 19: From EBITDA to net income
From EBITDA to net income H1 2014 H1 2015 % YoY 1 EBITDA 4,921 4,273 -13 Depreciation/Amortization/Impairments -1,737 -1,620 1 EBIT 3,184 2,653 -17 Economic interest expense (net) -916 -801 Net book gains 297 330 Restructuring -184 -162 Mark-to-market valuation of derivatives -182 3 Impairments (net
Slide 20: Generation
Generation 1 1 €m EBITDA EBIT H1 2014 H1 2015 % YoY H1 2014 H1 2015 % YoY Nuclear 742 595 -20 616 437 -29 Steam incl. Biomass 349 262 -25 144 80 -44 CCGT 116 -41 - -8 -91 - Other/Consolidation -25 23 - -28 30 - Total 1,182 839 -29 724 456 -37 Main EBITDA effects (in €bn) Nuclear (-0.1) Driven by l
Slide 21: Renewables
Renewables €m EBITDA 1 EBIT 1 H1 2014 H1 2015 % YoY H1 2014 H1 2015 % YoY Hydro 417 349 -16 355 323 -9 Wind/Solar/Other 453 371 -18 299 219 -27 Total 870 720 -17 654 542 -17 Main EBITDA effects (in €bn) Hydro (-0.1) Lower prices in all markets (-0.1) Disposal of Spanish hydro activities effectiv
Slide 22: Global Commodities
Global Commodities 1 1 €m EBITDA EBIT H1 2014 H1 2015 % YoY H1 2014 H1 2015 % YoY Coal/Oil/Freight/LNG 24 17 -29 24 17 -29 Power and Gas 137 181 32 92 137 49 Infrastructure/Other 59 76 29 56 73 30 Total 220 274 25 172 227 32 Main EBITDA effects (in €bn) Power and Gas (+/-0) Mainly driven by improv
Slide 23: Exploration & Production
Exploration & Production €m EBITDA 1 EBIT 1 H1 2014 H1 2015 % YoY H1 2014 H1 2015 % YoY Total 668 543 -19 361 198 -45 Main EBITDA effects (in €bn) North Sea fields (-0.1) Lower margins due to falling oil and gas prices compared to H1 2014 (-0.1) partly compensated by FX effects Higher volumes in
Slide 24: Germany
Germany €m EBITDA 1 EBIT 1 H1 2014 H1 2015 % YoY H1 2014 H1 2015 % YoY Distribution 847 856 1 576 593 3 Non-regulated/Other 169 218 29 134 187 40 Total 1,016 1,074 6 710 780 10 Main EBITDA effects (in €bn) Non-regulated/Other (+0.1) Improved gross margin in particular because of a comparatively co
Slide 25: Other EU Countries
Other EU Countries H1 2014 H1 2015 % YoY H1 2014 H1 2015 % YoY Distribution 488 503 3 307 321 4 Sales 344 334 -3 308 287 -7 Other/Consolidation 170 143 -16 90 73 -18 Total 1,003 980 -2 704 681 -3 Main EBITDA effects (in €bn) Distribution Networks (+/-0) Mainly higher tariffs in gas segment Romania
Slide 26: Non-EU Countries
Non-EU Countries €m EBITDA 1 EBIT 1 H1 2014 H1 2015 % YoY H1 2014 H1 2015 % YoY Russia 268 160 -40 195 119 -39 (in Mio Ruble) 12,876 10,351 -20 9,354 7,680 -18 Other Non-EU countries -35 -4 - -35 -5 - Total 233 156 -33 160 114 -29 Main EBITDA effects (in €bn) Russia (-0.1) Mainly due to negative c
Slide 27: Cash effective investments by unit
Cash effective investments by unit €m H1 2014 H1 2015 % YoY Generation 307 275 -10 Renewables 418 492 18 Global Commodities 30 58 93 Exploration & Production 38 62 63 Germany 224 256 14 Other EU Countries 332 337 2 Non-EU Countries 332 85 -74 Group Management / 13 20 54 Consolidation Investments 1,6
Slide 28: Economic net debt
Economic net debt €m 31 Dec 2014 31 Jun 2015 Liquid funds 6,067 8,177 Non-current securities 4,781 4,914 Financial liabilities -19,667 -18,936 1 Adjustment FX hedging 34 38 Net financial position -8,785 -5,807 Provisions for pensions -5,574 -4,374 Asset retirement obligations 2 -19,035 -19,163 Econo
Slide 29: Financial liabilities of the E.ON Group
Financial liabilities of the E.ON Group H1 2015 in € billion Maturity profile (as of H1 2015)2 30 Jun 2015 31 Dec 2014 Bonds 14.9 14.3 in EUR 7.1 7.1 in GBP 4.8 4.4 6,0 in USD 2.7 2.5 5,0 4,0 in CHF 0.0 0.0 3,0 in SEK 0.0 0.0 2,0 in JPY 0.2 0.2 1,0 other currencies 0.1 0.1 0,0 2015 2016 2017 2018 20
Slide 30: Economic interest expense (net)
Economic interest expense (net) Difference €m H1 2014 H1 2015 (in €m) Interest from financial assets/liabilities -398 -388 +10 Interest cost from provisions for pensions and similar provisions -54 -58 -4 Accretion of provisions for retirement obligation and other provisions -494 -434 +60 Capitalized
Slide 31: E&P - Oil & Gas production
E&P - Oil & Gas production m boe H1 2014 H1 2015 % YoY Skarv 7.8 6.9 -12 Njord/Hyme 0.0 2.6 - Elgin-Franklin 0.4 0.8 74 Babbage 0.7 0.7 -5 Huntington 0.8 0.7 -20 Rita 0.4 0.2 -46 Total North Sea 11.2 12.4 11 Yuzhno Russkoje 19.0 18.8 -1 Total 30.2 31.3 3 30
Slide 32: Outright hedging (Central Europe & Nordic)
Outright hedging (Central Europe & Nordic) €/MWh ~50 2015 ~37 ~39 2016 ~32 ~33 2017 ~29 0% 20% 40% 60% 80% 100% Central Europe Nordic 31
Slide 33: E.ON Investor Relations Contact
E.ON Investor Relations Contact Anke Groth Head of IR T+49 (211) 45 79 345 anke.groth@eon.com Marc Koebernick Germany & Switzerland T +49 (211) 45 79 239 US marc.koebernick@eon.com Dr. Stephan Schönefuß UK T +49 (211) 45 79 4808 Germany stephan.schoenefuss@eon.com Oliver Röder Russia T +49 (211) 45
Slide 34: Reporting calendar & important links
Reporting calendar & important links Reporting calendar August 12, 2015 Interim Report II: January – June 2015 November 11, 2015 Interim Report III: January – September 2015 March 9, 2016 Annual Report 2015 May 11, 2016 Interim Report I: January – March 2016 June 8, 2016 2016 Annual Shareholders Mee
Slide 35: 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