E.ON SE · XETR:EOAN
E.ON — ESG Presentation (August 2012)
28 slides from E.ON's sustainability presentation, August 2012
Slide 1: Corporate sustainability: Cleaner & better energy
Corporate sustainability Cleaner & better energy August 2012
Slide 2: Key drivers of E.ON's transformation
Investment Cleaner & better energy Performance Outside Europe Europe Cleaner & better energy Key drivers of E.ON’s transformation Divest non-core y Total target ~€15bn disposals by end 2013, ~€12.4bn achieved assets y Divested broad range of assets at attractive conditions Safeguard financial y Targ
Slide 3: E.ON Group key financial targets
E.ON Group key financial targets y 2012E EBITDA1 €bn 10.4 – 11.0 Underlying EPS €/share 2.15 – 2.35 y 2013E EBITDA1 €bn 11.6 – 12.32 Results Underlying EPS €/share 1.7 – 2.02 y 2015E EBITDA1 €bn 12.5 - 13.03 Underlying EPS €/share 2.0 – 2.33 y Dividend payout policy % underlying NI 50 – 60 y 2011A €
Slide 4: E.ON Group structure
E.ON Group structure Group Management New Build & Other EU Support Generation Renewables Gas Trading Germany Russia Technology1 countries functions1 Global units Regional units 1 Not a reporting unit. Leaner and more market oriented organization 4
Slide 5: Corporate sustainability at E.ON
Corporate sustainability at E.ON Mission Listen to and work with our stakeholders to Stakeholder deliver cleaner & better energy, ensuring corporate sustainability is at the core of our er St behaviors and business decisions old nts ES ak eh me eh G ak old el ele St er em G en ES ts Risk reduction S
Slide 6: Corporate sustainability organizational structure
Corporate sustainability organizational structure Group Management E.ON AG Board CR Council HSE (to be implemented) Council Corporate CR & HSE Offices Global & Regional units CR CI CR Reporting HSE Managers Managers Coordinators Managers Project teams CR: Corporate Responsibility HSE: Health, Safety
Slide 7: Factors for successful corporate sustainability
Factors for successful corporate sustainability Leadership Executives & senior management take personal responsibility for corporate sustainability commitment and demonstrate active involvement Governance & Establish robust organization, structures and processes to ensure guidance, structure account
Slide 8: Sustainability challenges translated in ESG elements
Sustainability challenges translated in ESG1 elements E.ON’s sustainability challenges2 ESG elements Environment y Climate change y CO2 emission intensity Very important y Energy efficiency CO2 reduction y Energy storage Relevance to stakeholders y Distributed generation Technology development y Tra
Slide 9: Environment - Climate change: Sustainability goals and ambitions 2012–2015
ESG elements E S G Environment - Climate change Sustainability goals and ambitions 2012–2015 Elements Ambition Business value y CO2 emission y 50% reduction of CO2 emission y Increased operating revenue due to intensity intensity by 2025 (1990 baseline) for the reduced EU ETS financial risk y Energy
Slide 10: E.ON's CO2 intensity target for power generation
ESG elements E S G Environment - Climate change E.ON’s CO2 intensity target for power generation E.ON carbon intensity (Europe) g CO2/kWh 630 600 400 410 200 310 CO2 intensity reduction target by about 50% 0 1990A 2011A 2025E Base year Continuous increase of renewables to compensate shutdown of Germ
Slide 11: Environment - Operational environment: goals and ambitions 2012–2015
ESG elements E S G Environment - Operational environment Sustainability goals and ambitions 2012–2015 Elements Ambition Business value y Water y Minimize water scarcity risks by y Reduced operating cost (e.g. reduce y Resource efficiency establishment of a sustainable water abstraction and power for
Slide 12: Environment - Performance at a glance (1)
ESG elements E S G Environment - Performance at a glance (1) E.ON´s carbon footprint in 2011 Scope 11 Scope 21 Scope 31 129.4 mn t CO2-e 5.6 mn t CO2-e 154.7 mn t CO2-e (incl. 88.5 mn t under EU-ETS) 0.6 0.05 4.2 3% 7.8 124.6 5.6 62.5 84.4 96% Power & heat generation Fugitive emissions Consumption o
Slide 13: Environment - Performance at a glance (2)
ESG elements E S G Environment - Performance at a glance (2) CO2 emissions from electricity generation1 Fresh water consumption in million t in million m3 38.2 5.0 7.6 36.1 2011 124.62 18.7 4.6 14.4 3.8 56.3 3.1 12.9 2010 116.7 2011 1,020.2 815.8 13.7 114.6 2009 115.0 G e rm a ny UK S pa in 0F ra nc
Slide 14: Social - Sustainability goals and ambitions 2012–2015
ESG elements E S G Social - Sustainability goals and ambitions 2012–2015 Elements Ambition Business value y Communities/Society y Explore “inclusive business”1 y Enhance understanding of existing y Incidents opportunities in the energy sector and new markets to develop scalable business y Reduce ris
Slide 15: Social - Performance at a glance
ESG elements E S G Social - Performance at a glance Number of women among total workforce1 Total community investments in 2011 and management in t€ in % 424 855 349 Science & Education 1,961 3,650 Communities, customers & 2011 13 energy 28 Environment/sustainability 2010 12 15,670 27 Arts & culture
Slide 16: Governance – Sustainability goals and ambitions 2012–2015
ESG elements E S G Governance – Sustainability goals and ambitions 2012–2015 Elements Ambition Business value y Corruption & bribery y Risks related to corruption & y Reduces financial and reputation y Supply chain bribery and human & labor rights risks from potential criminal and have been thorough
Slide 17: Governance - Performance at a glance (1)
ESG elements E S G Governance - Performance at a glance (1) Governance structure Governance themes y Ownership structure: 100% free float1 – no-block Annual building, no government participation Shareholders Meeting y Compliance to codes: regular training of employees throughout the Group an ha s y
Slide 18: Governance - Performance at a glance (2)
ESG elements E S G Governance - Performance at a glance (2) ESG risk management in fuel procurement is one of our governance elements y 2007 E.ON established responsible procurement policy addressing environmental Procurement policy performance, human & labour rights and business ethics y 2009 E.ON
Slide 19: External recognition - Ratings / Rankings and Reporting
External recognition - Ratings / Rankings and Reporting Continued recognition of E.ON's sustainability activities: ⇒ Listed in CDP Leadership Performance Index ⇒ Listed in Dow Jones Sustainability Index ⇒ “SAM-Sustainability Award 2012: bronze class" ⇒ Recognized as “Great Place to Work” ⇒ Recognize
Slide 20: Summary
Summary Stakeholder From To Implementing corporate er Largely project driven St old nts sustainability in ES ak activities eh eh me G core business processes ak old el ele St er em Management of G en Corporate sustainability ES corporate sustainability ts lead by business owners by experts Stakehold
Slide 21: Back-up
Back-up 21
Slide 22: "Scope" classification – Understanding current and future carbon issues
ESG elements E S G “Scope” classification – Understanding current and future carbon issues CO2 CH4 N2O HFCs CO2 CH4 N2O HFCs PFCs SF6 PFCs SF6 SCOPE 2 SCOPE 1 INDIRECT DIRECT Purchased electricity Steam Heating & cooling for Company own use Facilities SCOPE 3 SCOPE 3 Purchased INDIRECT Transportatio
Slide 23: Governance – Board remuneration overview
ESG elements E S G Governance – Board remuneration overview General remarks on board remuneration Key components of board remuneration Purpose & role Short-term Long-term y Ensure attractive and adequate compensation in-line Base salary incentive incentive with market (STI) (LTI) y Adequacy is based
Slide 24: Board remuneration - Short-term incentive scheme (STI)
ESG elements E S G Governance – Board remuneration - Short-term incentive scheme (STI) Key STI elements Group EBITDA Value factor x 35% target achievement 2011 2011 Group EBITDA target achiev. 2011 x Value factor 2011 Final target Group EBITDA target achiev. 2012 x Value factor 2012 Ø 35% + achievem
Slide 25: Board remuneration - Long-term incentive scheme (LTI)
ESG elements E S G Governance – Board remuneration - Long-term incentive scheme (LTI) y Value of performance rights is determined by share price and long-term value factor y Long-term value factor is determined ex post by 4-year average excess performance (difference between ROACE and WACC) y Value
Slide 26: E.ON Investor Relations contact
E.ON Investor Relations contact Marc Spieker Head of Investor Relations T +49 2 11-45 79-3 45 marc.spieker@eon.com Peter Blankenhorn Regions/Sales, SRI, Retail, T +49 2 11-45 79-4 81 Facts & Figures peter.blankenhorn@eon.com François Poullet Generation, Gas T +49 2 11-45 79-3 32 francois.poullet@eon
Slide 27: E.ON IR - Reporting calendar & important links
E.ON IR - Reporting calendar & important links Reporting calendar Date Event August 13, 2012 Interim Report II: January – June 2012 November 13, 2012 Interim Report III: January – September 2012 March 13, 2013 Annual report 2012 May 3, 2013 2013 Annual Shareholders Meeting May 6, 2013 Dividend Payme
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