Slide 1: 9M 2020 Results
9M 2020 Results November 11th, 2020
Slide 2: 9M 2020 results underpin confidence for remainder of the year
9M 2020 results underpin confidence for E.ON 9M 2020 results remainder of the year Highlights Key financials1 €bn ✓ Strong operational performance in Q3 2020 3.0 -43.1 ✓ 2020 EBIT guidance of €3.6 - 3.8bn confirmed 2.7 ✓ Current selective lockdown measures in E.ON countries 1.3 -42.1 1.1 without sig
Slide 3: Almost €60bn of potential EU funding for E.ON markets earmarked for climate
Almost €60bn of potential EU funding for E.ON markets E.ON 9M 2020 results earmarked for climate – already 200 projects identified Funding focus matching E.ON’s core activities in customer centric energy infrastructure1 €58.4bn climate Efficient and decarbonized district heating and cooling system
Slide 4: Covid-19 impact until year end in line with expectations
Covid-19 impact until year end in line with expectations E.ON 9M 2020 results Power demand recovered faster than expected Payment behavior and bad debt in line with expectations; UK remains outlier 110% Germany relative to 20191 Government Change of Day of 100% intervention payment behavior sales 90
Slide 5: Sound EBIT development despite Covid-19 impact and mild weather
Sound EBIT development despite Covid-19 impact and E.ON 9M 2020 results mild weather EBIT1 9M 2020 vs. 9M 2019 pro forma Key drivers €m 9M 2019 pro forma 2,987 –• Covid-19-related lower volumes Energy ~€-120m Covid-19 impact –• Germany: weather-related lower volumes Energy Networks Networks -223 (vo
Slide 6: Adjusted Net Income in line with EBIT development
Adjusted Net Income in line with EBIT development E.ON 9M 2020 results 9M 2020 €m Group EBIT1 2,688 Economic -836 interest result Profit 1,852 before Taxes1 Income taxes -463 Tax rate at ~25% Minorities -300 0.42 EPS (€ per share) Adjusted 1,089 Net Income1 1. Adjusted for non-operating effects 6
Slide 7: Economic Net Debt improved due to strong Operating Cash Flow in Q3 2020
Economic Net Debt (END) improved due to strong E.ON 9M 2020 results Operating Cash Flow in Q3 2020 € bn -8.8 -8.8 -8.0 Asset Retirement Obligations (ARO) -8.6 Pension provisions Net financial position -24.6 -26.2 -1.0 +2.4 +0.2 -0.6 -42.1 -43.1 END OCF Net Investments Pensions2 Other (incl. AROs) EN
Slide 8: Group outlook 2020 and mid-term delivery plan confirmed
Group outlook 2020 and mid-term delivery plan E.ON 9M 2020 results confirmed Group Guidance 2020 2020 – 2022 delivery plan EBITDA1: €6.8-7.0bn ✓ EBIT1: €3.6-3.8bn ✓ Dividend per share (DPS) growth up to 5% p.a. ANI1: €1.5-1.7bn ✓ Capex2: ~€4.2bn ✓ EBIT1 growth Group EPS1 growth Group 11-13% CAGR 17-
Slide 9: Financial Appendix
9M 2020 Results Financial Appendix
Slide 10: Guidance overview
Guidance overview E.ON 9M 2020 results € bn 2019 pro forma3 2020 2020-2022 EBITDA1 6.904 6.8-7.0 5-6% CAGR Energy Networks 5.364 5.0-5.2 Customer Solutions 1.126 1.0-1.2 Non-Core 0.617 0.8-1.0 Corporate Functions & Other -0.203 ~-0.3 EBIT1 4.065 3.6-3.8 11-13% CAGR Energy Networks 3.499 3.1-3.3 Cust
Slide 11: Segment outlook 2020 remaining year
Segment outlook 2020 remaining year E.ON 9M 2020 results EBIT1 key drivers Q4 2020 Energy Networks Customer Solutions Non-Core Germany & CEE: All regions: PreussenElektra: •– Covid-19-related lower volumes –– • Covid-19-impact •+ Higher hedged prices Germany: – • Higher depreciation from purchase of
Slide 12: Financial highlights
Financial highlights E.ON 9M 2020 results 9M 2019 €m 9M 2020 % YoY pro forma Sales - 43,314 - EBITDA1 5,004 4,966 -1 EBIT1 2,987 2,688 -10 Adjusted Net Income 1 1,286 1,089 -15 OCFbIT 2,860 4,063 +42 Investments 2,825 2,374 -16 Economic Net Debt² -38,895 -42,092 -8 1. Adjusted for non-operating effe
Slide 13: Temporary Economic Net Debt increase largely due to squeeze-out and pensions
Temporary Economic Net Debt (END) increase largely due E.ON 9M 2020 results to squeeze-out and pensions € bn -8.9 -8.8 -7.2 Asset Retirement Obligations (ARO) -8.6 Pension provisions Net financial position -23.4 -24.7 +3.5 +0.5 +1.1 -2.6 -39.4 -38.9 -1.6 -1.5 -1.4 -0.7 -42.1 END Transaction END OCF
Slide 14: Cash Conversion Rate in 9M 2020 at 87%
Cash Conversion Rate1 in 9M 2020 at 87% E.ON 9M 2020 results € bn 87% CCR1 5.0 0.1 4.1 0.2 3.7 -1.0 -0.6 1.3 -2.4 Group Cash Change in WC OCFbIT Interest Tax payments OCF Capex FCF EBITDA2 adjustments3 payments 1. Cash Conversion Rate (CCR): (OCF bIT+ provision utilization nuclear) ÷ EBITDA 2. Adjus
Slide 15: Divisions: Energy Networks
Divisions: Energy Networks E.ON 9M 2020 results EBIT1 Drivers €m –• Covid-19-related lower volumes CEE & Turkey 2,554 455 –9% 2,331 Germany –• Weather-related lower volumes 500 Sweden 394 275 Sweden –• Lower WACC in new regulatory period Germany 1,705 1,556 –• Higher transmission charges +• Strong o
Slide 16: Divisions: Customer Solutions
Divisions: Customer Solutions E.ON 9M 2020 results EBIT1 Drivers €m –• Weather impact on volumes 418 -10% 378 All –• Covid-19: sell-back of volumes (B2B) & bad debt Germany 312 296 UK +• Restructuring benefits Benelux Other 89 65 45 39 UK -48 -2 9M 2019 9M 2020 pro forma €m Germany Benelux UK Other
Slide 17: Customer numbers B2B & B2C
Customer numbers B2B & B2C E.ON 9M 2020 results Stable customer base (m)1 Thereof: electricity customers (m)1 Customer accounts -0.2% -0.2% 41.5 41.4 52.7 52.6 11.6 11.6 6.6 6.4 2.6 2.5 13.9 13.9 10.8 10.9 9.8 10.0 10.9 10.5 FY 2019 9M 2020 4.6 4.6 Thereof: gas customers (m)1 11.2 +0.0% 11.2 13.5 13
Slide 18: Non-Core business
Non-Core business E.ON 9M 2020 results EBIT1 Drivers €m +• Higher achieved power prices -9% +• Higher production volumes 326 298 Preussen Elektra –• Higher depreciation from purchase of production rights Preussen 256 Elektra 271 –• Transfer of minority stakes2 to RWE Generation Turkey –• One-off eff
Slide 19: Adjusted Net Income
Adjusted Net Income E.ON 9M 2020 results 9M 2019 €m 9M 2020 % YoY pro forma EBITDA1 5,004 4,966 -1 Depreciation/amortization -2,017 -2,278 -13 1 EBIT 2,987 2,688 -10 Economic interest expense (net) -874 -836 +4 1 EBT 2,113 1,852 -12 1 Income Taxes on EBT -553 -463 +16 1 % of EBT -26% -25% - Non-cont
Slide 20: Reconciliation of EBIT to IFRS Net Income
Reconciliation of EBIT to E.ON 9M 2020 results IFRS Net Income €m 9M 2019 9M 2020 % YoY 1 EBITDA 3.742 4.966 +33 Depreciation/Amortization/Impairments -1.534 -2.278 -49 1 EBIT 2.208 2.688 +22 Reclassified businesses of Renewables -300 0 - Interest result -583 -535 +8 Net book gains -32 218 +781 Rest
Slide 21: Cash-effective investments
Cash-effective investments1 E.ON 9M 2020 results 9M 2019 €m 9M 2020 % YoY pro forma Energy Networks 1,883 2,039 +8 Customer Solutions 707 500 -29 Corporate Functions & Other 87 -323 -471 Consolidation 0 -1 - Non-Core 148 159 +7 Investments 2,825 2,374 -16 1. Pro forma figures 9M 2019, not audited 21
Slide 22: Economic Net Debt
Economic Net Debt1 E.ON 9M 2020 results €m 31 Dec 2019 30 Sep 2020 Liquid funds 3,602 4,512 Non-current securities 2,354 2,005 Financial liabilities -28,947 -31,380 Adjustment FX hedging² 166 215 Net Financial Position -22,825 -24,648 Provisions for pensions -7,201 -8,616 Asset retirement obligation
Slide 23: Economic interest expense (net)
Economic interest expense (net)2 E.ON 9M 2020 results 9M 2019 Difference €m 9M 2020 pro forma (in € m) Interest from financial assets/liabilities -756 -789 -33 Interest cost from provisions for pensions and similar provisions -95 -73 +22 Accretion of provisions for retirement obligation and similar
Slide 24: Bond maturities
Bond maturities E.ON 9M 2020 results Bond maturities as of end 9M 20201,2 17.1 € bn Volume % Coupon 1.7 1.5 0.4% 1.3 1.1 5.7% 0.0% 1.1 5.9% 5.6% 0.9 0.8 0.6 0.0% 3.9% 0.6 0.5 6.5% 0.4% 3.2% 0.8% 0.3 0.0% 3.0% 0.0% 3.2% 6.5% 5.5% 0.9% 5.5% Q4 Q2 Q3 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 >2024 20202 2021 2021 2022 2
Slide 25: Financial calendar & important links
Financial calendar & important links E.ON 9M 2020 results Financial calendar March 24, 2021 Annual Report 2020 May 11, 2021 Quarterly Statement: January – March 2021 May 19, 2021 2021 Annual Shareholder Meeting August 11, 2021 Half-Year Financial Report: January – June 2021 November 10, 2021 Quarter
Slide 26: E.ON's Investor Relations Team
E.ON‘s Investor Relations Team Analysts & Institutional Investors Private Shareholders Verena Nicolaus-Kronenberg Andreas Thielen Sandra Schuck Head of Investor Relations Manager Investor Relations Manager Investor Relations verena.nicolaus-kronenberg@eon.com andreas.thielen@eon.com sandra.schuck@eo
Slide 27: Disclaimer
Disclaimer his 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, ublished, or passed on to any other person or used in whole or in part for any other purpose. By accessing this document you agree t