Capital Markets Story - August 2021 including H1 2021 financials - EOn
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Capital
Markets
Story
August 2021
including H1 2021 financials
Our purpose Energy fuels human progress. At E.ON, we’re doing everything we can to make the future better and to enable our networks and energy solutions to connect people with one another.
E.ON business model fully focused on the energy transition
Non-Core activities Core activities: Customer centric energy infrastructure
Up-stream & Power & Gas Supply
Power Generation distribution business
E.ON fully focusing on the energy transition
Employees 2020 Dividend per share 2020 Group EBIT 2020 Adj. Net Income 2020
78,126 €0.47 ~€3.8bn ~€1.6bn
3
E.ON’s two core businesses
Energy Networks Customer Solutions
~€35bn Regulated Asset Base ~53m customers across Europe2
Germany €22.4bn Germany 13.9m
Sweden €4.8bn UK 10.3m3
CEE & Turkey €7.7bn1 Other ~28m
~78 GW renewables capacity ~33% of adj. EBIT4 from decentral
connected to E.ON networks energy infrastructure
~20% of renewable assets in Europe Market leading positions with
connected to E.ON networks
4x Top 1 and 3x Top 2 in energy retail
1. 100% view for Slovakia and Turkey 2. Including at-equity participations; earnings of Customer Solutions business of Croatia, Slovenia and VSEH allocated to Energy Networks
due to size 3. To standardize reporting, the definition of customers was adjusted 4. Adjusted for non-operating effects, FY 2020 4
Table of contents 1 H1 2021 update ………………..……………..……………………………………………………… 6 2 Investment highlights ……………………...……………………………………………………… 22 3 Appendix ……………………………...……………………………………………………………………… 48
H1 2021 update
Positive momentum with guidance adjustment
Highlights H1 key financials1 2021 FY guidance update
€bn
Strong performance in H1 2021 Group EBITDA1 €7.6-7.8bn
Excellent operations including progress on (€7.2-7.4bn)
synergies and normalized weather 3.2
Technical adjustment of FY 2021 guidance
2.2
EBIT1 guidance upgrade of ~€0.6bn due to 1.8
Group EBIT1 €4.4-4.6bn
adoption of law on the use of nuclear
1.0 (€3.8-4.0bn)
production rights
Mid-term targets including synergies and
dividend policy confirmed Adj. EBIT Adj. Net
Income Adj. Net Income1 €2.2-2.4bn
Floods in Germany - E.ON provides high (€1.7-1.9bn)
H1 2020 H1 2021
competence in crisis management
1. Adjusted for non-operating effects 7
Progress on our key priorities
Sustainability Digitalization Growth
• Ecological grid corridor • IT renewal on track: increasing • European ‘Fit for 55’: focus
management: ~70,000 hectares focus on cloudification themes fully support E.ON’s
along our high-voltage lines to growth ambitions
become biotopes • Acceleration on digital sales
• #GenerationRestoration: platforms: total of 9.5m accounts • CEO Alliance for Europe’s
UNEP1 partnership for preventing, migrated to E.ONnext and German Recovery, Reform and Resilience:
halting and reversing the digital sales platform E.ON undertakes fundamental
destruction of ecosystems role in the green energy transition
with own hydrogen activities
European
Green Deal
1. United Nations Environment Programme
8
Energy Networks Germany: initial proposal for
return on equity published
Allowed German pre-tax RoE1 for new assets First assessment
• Proposed RoE is not sufficient to support investment
needs for energy transition
6.91% • Proposal is not competitive in an international context
• Market risk premium of 3.7% is lowest in any European
RFR2: 0.74%
RFR2: 2.49% MRP3: 3.7% energy regulation, average ~5%6
MRP3: 3.8% Beta: 0.81
Beta: 0.83
minimum Further process
3rd regulatory period4
4.59% • Consultation period for RoE for 4th regulatory period until
25th August 2021
Initial proposal for
4th regulatory period5
• Final RoE determination expected for October
• Consultation period led to RoE increase in 2 (out of 3)
previous regulatory periods
1. RoE = Return on Equity 2. RFR = risk-free rate 3. MRP = market risk premium 4. Gas: 2018-2022, Power: 2019-2023 5. Gas: 2023-2027, Power: 2024-2028 9
6. According to CEER report
Customer Solutions: increased demand for sustainable
offerings
Energy Infrastructure Solutions (EIS) Future Energy Home (FEH)
FY 2021 outlook H1 2021 vs. H1 2020
~€500m capex +~30% revenue
>€200m EBIT1 +€30m EBIT1
1. Adjusted for non-operating effects 10Significant EBIT growth in all segments
EBIT1 Key drivers
€m
+• Covid-19 impact in 2020
H1 2020 2,185 Energy +/–• Germany: normalized weather/
Networks regulatory cycle
Energy
Networks
+125 +• CEE & Turkey: Slovakia - inclusion of VSEH2
Customer
Solutions
+358 +
• Covid-19 impact in 2020
+978m Customer +
• Normalized weather
Corp. Functions
+19
Solutions +
• UK: restructuring benefits
& Other, Cons.
+
• Other: strong operational performance
Non-Core +476
H1 2021 3,163 Non-Core +
• PreussenElektra: nuclear production rights
agreement (~€500m)
1. Adjusted for non-operating effects 2. Slovakian business acquired from RWE in Q3 2020 11Adjusted Net Income amplified by lower refinancing costs
and tax
H1 2021
€m
vs. H1 2020:
Group EBIT1 3,163
+45%
Economic
-496
interest result
Profit
2,667
before Taxes1
Income taxes -614 Tax rate at ~23%
Minorities -288
vs. H1 2020:
Adjusted
Net Income1
1,765
0.68 EPS (€ per share) +86%
1. Adjusted for non-operating effects 12END unchanged despite high investments and dividend
payment
€bn
-8.6
Asset Retirement Obligations (ARO)
-8.7 Pension provisions
Net financial position
-6.4
-8.1
-25.9
-24.0
+1.2 +1.7
+0.1
-40.7 -1.5 -40.9
-1.6
END OCF Net Investments Pensions2 Dividends Other END
FY 2020 H1 2021 H1 20211 (incl. AROs) H1 2021
1. Net of divestments 2. Actuarial interest rates for German pensions at 1.1% (vs. 0.8% @ FY 2020), for UK pensions at 1.9% (vs. 1.4% @ FY 2020) 13Upgraded Group guidance 2021 due to nuclear production
rights agreement
Group guidance
EBITDA1: €7.6-7.8bn EBIT1: €4.4-4.6bn ANI1: €2.2-2.4bn
(€7.2-7.4 bn) (€3.8-4.0bn) (€1.7-1.9bn)
Segment guidance1
Energy Networks Customer Solutions Non-Core
EBITDA: €5.0-5.2bn ✓ EBITDA: €1.4-1.6bn ✓ EBITDA: €1.2-1.4bn (€0.8-1.0bn)
EBIT: €2.9-3.1bn ✓ EBIT: €0.8-1.0bn ✓ EBIT: €0.8-1.0bn (€0.2-0.4bn)
1. Adjusted for non-operating effects 14Mid-term delivery plan confirmed
Dividend per share (DPS) growth up to 5% p.a.
Group EBIT1 growth Group EPS growth
1
8-10%2 CAGR 12-14%2 CAGR
Average cash conversion Capital structure with strong
rate3of 100% BBB/Baa rating
1. Adjusted for non-operating effects, 2021-2023. 2. Based on FY 2021 guidance excluding earnings effect in EBIT of ~€0.6bn and ANI of ~€0.5bn from nuclear production 15
rights settlement 3. Excluding provision utilization for nuclear decommissioning, average for 2021-2023Guidance overview
Change vs. May 2021
€bn FY 2020 2021 2021-2023
EBITDA1 6.905 7.6-7.8 2-3%2 CAGR
Energy Networks 5.199 5.0-5.2
Customer Solutions 1.006 1.4-1.6
Non-Core 0.925 1.2-1.4
Corporate Functions & Other -0.225 ~-0.2
EBIT1 3.776 4.4-4.6 8-10%2 CAGR
Core EBIT 3.363 11-13% CAGR
Energy Networks 3.253 2.9-3.1
Customer Solutions 0.454 0.8-1.0
Non-Core 0.413 0.8-1.0
Corporate Functions & Other -0.344 ~-0.3
ANI1 1.638 2.2-2.4 12-14%2 CAGR
EPS1 €0.63 €0.84-0.92 12-14%2 CAGR
Dividend €0.47 up to 5% p.a. up to 5% p.a.
Capex3 4.171 ~4.9 ~14
Energy Networks 3.386 ~3.5 ~10.5
Customer Solutions 0.790 ~1.0 ~2.8
Debt factor 5.9x 4.8x-5.2x
1. Adjusted for non-operating effects 2. Based on FY 2021 guidance excluding earnings effect in EBIT of ~€0.6bn and ANI of ~€0.5bn from nuclear production rights 16
settlement 3. Cash-effective investments including Corporate Functions & Other and Non-CoreInvestment highlights
Why invest in E.ON?
1 We commit to a sustainable dividend per share
growth of up to 5% annually until 2023 and further
growth beyond
Dividend
growth
2 We are the green investment opportunity and we
enable the energy transition
Customer centric
energy
infrastructure 3 We focus on customer centric energy infrastructure
which is the core of our resilient portfolio
Sustainability Performance
4 Performance culture is part of our DNA and we
continuously deliver on operational excellence
18We commit to annually grow the dividend, also beyond 2023
Dividend per share
€
0.43 0.46 0.47
0.30
0.21
2016 2017 2018 2019 2020 2021 2022 2023 Growth
beyond
✓ We delivered… …and will continue to deliver
19Why invest in E.ON?
Dividend
growth
Customer centric
energy
infrastructure
Sustainability Performance
20Net zero is the new normal – E.ON is driving carbon reduction
Global challenges E.ON’s contribution Focus SDGs5
IPCC1 long term goal to limit global Avoided emissions together with our clients
warming to 1.5°C 2020: ~100m tons CO2
German greenhouse gas emissions to be cut
One out of five renewable
by 55% by 2030
2
assets in Europe3 connected to E.ON’s grids
Green Deal: The EU will be climate neutral E.ON will become carbon neutral4
by 2050 by 2040
1. Intergovernmental Panel on Climate Change 2. Pre Green Deal 3. Considering EU27 4. Carbon neutrality by 2040 (Scope 1 and 2), 75% carbon reduction by 2030
(Scope 1 and 2), 50% carbon reduction (Scope 3) by 2030, carbon neutrality by 2050 (including Scope 3). Base year: 2019 pro forma 5. UN Sustainable Development Goals 21Achievements across all sustainability dimensions
CO2 7% reduction in Scope 1 & 2 &
2020: Significant progress in integrating
~100m tons of CO2 avoided with our clients climate & non-financial risks
80-85%
EU taxonomy aligned capex (2021-23)1 ✓ Reporting integrated
>65% German onshore & >50% German
renewables connected to E.ON grid Listed on prestigious CDP A-list
20% female representation in management board2 Preparation to receive validation
21% women managers
✓
New remuneration system aligned with
Paper published
ESG targets Just transition
1. Based on EU taxonomy eligible capex 2. From April 1, 2021 22We take sustainability as our guiding principle
WE enable Europe to become carbon WE foster a diverse and
neutral inclusive culture
-75%1 by 2030 CO2
Scope 1 & 2
-100%1 by 2040 32% proportion of women in
management positions2
Scope 3
-50%1 by 2030
-100%1 by 2050
WE care for our people
Reduction of serious incidents and fatalities frequency to 0.1 by 20253
1. With reference to 2019 figures: Scope 1: 3.88m tons CO2eq, Scope 2: 4.82m tons CO2eq and Scope 3: 120.27m tons CO2eq
2. Reflection of overall proportion of women in the workforce 3. Serious incidents and fatalities frequency (SIF) was 0.12 in 2020 2380-85% of investments aligned with EU taxonomy
Investments 2021 Investments 2021-2023
€bn €bn
~80% 80-85%
EU taxonomy EU taxonomy
~4.91 aligned2 ~141 aligned2
Energy Networks Customer Solutions Other3
1. Cash-effective investments including Corporate Functions & Other and Non-Core 2. Based on EU taxonomy eligible Capex 3. Corporate Functions & Other and Non-Core 24Decentralization means digitalization and efficiency potential
The complexity within DSOs is increasing ...
Decentralization drives system complexity E.ON provides digital solutions to capitalize on it
Energy Management System
Regional Energy Market
EnergieMonitor & Klima-Navi
Customer Smart Home Transparency about CO2-footprint and
interface Storage
CO2 Footprint
impact of energy transition to
App
(data usage)
municipalities and customers
Asset Control Systems Local Energy System
Predictive
Maintenance
System Predictive Maintenance
Flexibility
Network Data-driven decisions with
Control
operation Data, AI
(data distribution)
Center machine learning and artificial
Asset
Monitoring
Automated Grid intelligence
Planning
Generation Network Buildings Grid Smartification
Physical Intelligent substation and sensors
assets
(data generation) E-mobility collects real-time data from networks to
Broadband enhance grid management
25Why invest in E.ON?
Dividend
growth
Customer centric
energy
infrastructure
Sustainability Performance
26Infrastructure is at the heart of E.ON’s capital allocation
~10%
Energy Retail
Customer Solutions1 retail2 investments4
Decentral energy
infrastructure3
~90%
Infrastructure
Energy Networks1 Regulated energy networks investments4
1. IFRS segments used in external reporting 2. Includes Energy Sales and Services and New Solutions 3. Includes Energy Infrastructure Solutions
4. Excludes investments in Corporate Functions & Other and Non-Core 27Energy transition driving multi-decade investment
opportunities
Industry investments in German power distribution networks excluding Green Deal upside
€bn
Drivers
6.7
4.7
2.5
2010
2009 2020 2030 2050
Source: Historic values: Bundesnetzagentur Monitoringbericht 2019. Future outlook: dena-Leitstudie Integrierte Energiewende
28
1. Assuming 2% inflation beyond 2020E.ON is the leading energy network company in
Northern and Central Europe
E.ON Regulated Asset Base (RAB) – regional split
€bn
Total RAB1, 2
34.9 Sweden Germany CEE3,4 &Turkey4
Power RAB Gas RAB
4.8 22.4 7.7
1. RAB is the value of all distribution assets determined by the regulator. In general, RABs from different regulatory regimes are not directly comparable due to significant
methodical differences. These include for example different regulatory asset lifetimes, asset valuation methods or treatment of customer contributions for network connections. 29
2. Differences may occur due to rounding 3. Central Eastern Europe including: Czech Republic, Hungary, Poland, Romania, Slovakia 4. 100% view for Slovakia and TurkeyLong-term RAB growth with further upside potential
E.ON Regulated Asset Base1 growth
€bn
Power
34.9 4-5% • Multi-decade growth potential
CAGR2 stemming from mega-trends
Gas
Power 29.4
• Optimizing our existing gas asset
base with limited investment needs
• Future growth option from hydrogen
Gas 5.5
2020 2023 Beyond
1. RAB is the value of all distribution assets determined by the regulator. In general, RABs from different regulatory regimes are not directly comparable due to significant 30
methodical differences. These include for example different regulatory asset lifetimes, asset valuation methods or treatment of customer contributions for network
connections, including 100% view for Turkey and Slovakia. 2. Relates to power RAB, assumes constant year-end 2020 FX-rates, excludes Hungarian restructuringThree years of regulatory stability
Regulatory periods per country
2021 2022 2023 2024 2025 2026 2027 2028
Germany (Gas)
Slovakia1
Poland2
Turkey
Czech Republic
Hungary3
Romania
~90% of the Energy Networks
Germany
(Power)
EBIT4 is highly visible until 2024
Sweden
1. Length of upcoming regulatory period still under discussion 2. Regulatory period: 2016-2020, prolonged by ‘transition’ year 2021 and most likely also 2022 31
3. Regulatory period power starting Apr 1st, 2021. Regulatory period gas starting Oct 1st, 2021. 4. Based on Energy Networks EBIT 2020, adj. for non-operating effectsWe successfully manage regulatory reviews
Regulatory updates in CEE & Turkey from 20211 onwards
new WACC: Adjusted RAB
CZ
-1.4pp ~6.5% (nominal)
Increased eligible Capex and Opex
new WACC:
HU
-1.3pp ~3.4% (real) Introduction of regulatory account in Earnings
Poland successfully
new WACC:
Bonus WACC of 1-2pp for smart
retained
TR -1.3pp ~12.3% (real)
investments in Poland and Romania
new WACC: Incentives for grid quality and EU
RO +0.7pp ~6.4% (real) funding
1. Romania from April 2020 onwards
32Energy Networks Germany - Earnings components
Illustrative average EBITDA1 split (2020-2023) Illustrative average EBIT1 split (2020-2023)
Regulated return Regulated return
and depreciation2 0 - 10% and depreciation2 0 - 15%
~30%
~10% ~35% ~10%
~50%
~60%
~10% ~15%
~10%
~15%
Regulated income Regulated income
from participations4 from participations4
Operational Efficiency Adjacent business3 Other earnings / temporary effects
1. Adjusted for non-operating effects 2. Includes return on RAB, difference between regulatory and IFRS D&A and revenues for grid expansion 3. Adjacent business includes
33
e.g. water business, broadband, smart meter and technical network services 4. Consolidated at-equity / at-costExemplary earnings components – more than return on RAB
Illustrative EBIT composition1,2
Additional businesses /
CAPEX driven Performance driven Timing and other effects
Other
70% - 80% 5% - 10% 5% -10% ~5%
Base allowed Depreciation OPEX performance & Timing effects Other Additional Other EBIT Energy
earnings difference incentive earnings (regulated) businesses (non-regulated) Networks
(RAB x WACC) (Reg. – IFRS) (Excl. Germany)
1. Consolidated EBIT composition for all Energy Networks countries (excluding Germany and Croatia). 34
2. Turkey, Slovakia ZSE and VSE with 100% view, while excluding CS business.Impact of rising interest rates and inflation on
regulated earnings
Time horizon Impact of increasing interest rates and inflation
• Allowed WACCs/RoE are usually adjusted only once per regulatory period
Short-term • Inflation-indexation in most countries with t+2 time-lag
• Allowed WACCs/RoE to gradually increase (with start of new regulatory periods)
Mid-term due to higher interest rates
• Positive effect from inflation-indexation (double digit million effect p.a.)
• Higher allowed WACCs/RoE with start of new regulatory periods in all countries
Sensitivities
Long-term • Allowed WACCs/RoE : +1% in regulatory return rate leads to triple digit million
Euro increase of allowed returns p.a.
• Inflation-indexation: +1% in inflation leads to a high double digit million Euro
increase p.a.
35Key events for upcoming 4th German electricity
network regulation period
July 2021 August 2021
BNetzA has published the Public consultation in
preliminary decision on the written form until
RoE together with the 25th August
consultancy opinion laying
out a minimum value of
4.59%
Q1 2021 Q2 2021 Q3 2021 Q4 2021
October/November 2021 Following
final RoE
Final decision on the RoE
decision
for the 4th regulatory
period expected to be Potential
taken by BNetzA appeal process
1. Not expected to be published before preliminary BNetzA decision
36Energy Infrastructure Solutions (EIS)
Core part and growth driver of Customer Solutions
Core regions
Growth regions
Customers >1.5 m
# of plants ~4,100
Heat, chill & steam production ~19 TWh
Electricity production ~12 TWh
Heat, chill, steam grids ~5,000 km
Sales 2020 ~€2bn
EBIT CAGR 2021-2023 ~15%
Serving customers all over Europe
across 15 countries
37EIS provides energy solutions to four customer segments based
on three business models
Core customer Public &
Real estate Commercial Industry
segments municipal entities
Core solutions
Solutions
Energy Waste heat Local energy Digital
Heat Cooling Power efficiency recovery networks services E-mobility
Core business
Full service contracting Design, build & operate Operation & maintenance
models
38Future Energy Home (B2C Solutions)
New growth area in Customer Solutions
2020 actuals
Future Energy Home
regions
Hardware devices1 installed ~100k
Service & maintenance contracts >1.2m
Yearly CO2 savings2 >325 kt
E.ON Home app customers3 >10,000
Sales 2020 ~€0.7bn
EBIT CAGR 2021-2023 >25%
Market leading in Europe
serving customers in 10 countries
1. Including PV & battery, heating & cooling devices (boiler, heat pump, AC) 2. Savings by customers due to installed devices 3. Connected customers 39Future Energy Home and eMobility enable customers to reduce
their CO2 footprint with sustainable energy solutions
PV & Storage
PV & Storage
Sale and installation of PV & battery with service/energy bundles
E.ON Home App Battery sales more than doubled in 2020
EV charging Home Heating
Home Heating Sale and installation of efficient heating with service & maintenance
Heat pump sales more than doubled in 2020
Energy bundles Services & Maintenance
E.ON Home app
B2C: Wallbox, services, Home energy management app to control energy flows in the home
energy (PV & battery, heat pump, air conditioning, EV charging, smart meter)
B2B/Cities: Design, build & eMobility
operate charging solution B2C: Wallbox and services with integration in Future Energy Home ecosystem
eMobility infrastructure and time-of-use energy tariffs
(charge on the road) B2B/cities: Design, build & operate charging solutions
Operating >13.000 charging points across Europe
40Customer numbers B2B & B2C
Customer accounts (m)1 Thereof: electricity customers (m)1
0% 41.0 0% 41.1
52.1 52.1 11.7 11.7
6.2 6.1
2.2 2.2
13.9 14.0 10.8 10.9
10.1 10.2
10.3 10.0 FY 2020 H1 2021
4.1 4.1 Thereof: gas customers (m)1
11.1 0% 11.0
13.7 13.8
2.2 2.3
4.1 3.9
10.1 10.2 1.9 1.9
2.9 2.9
FY 2020 H1 2021
FY 2020 H1 2021
Germany UK Benelux3 Other2 Turkey
1. Including at-equity participations 2. Incl. Sweden, Italy, Czech Republic, Hungary, Croatia, Romania, Poland, Slovakia 3. 2020 adjusted due to the disposal of Essent BE 41Why invest in E.ON?
Dividend
growth
Customer centric
energy
infrastructure
Sustainability Performance
42Synergy delivery fully on track
Net synergy targets1 Synergy delivery by division
€m
~780
~740
~310
29%
52%
130✓
40✓ 19%
2019 2020 2021 2022 2023 2024
Customer Solutions
✓ Transaction completely digested Energy Networks
✓ Central voluntary leave program successfully concluded Central Functions, IT and Other
✓ Future operating model successfully implemented
1. Net accretive to EBIT, EBIT adjusted for non-operating effects and before implementation costs (implementation costs not included in adjusted EBIT)
43UK transformation ahead of plan
2020 2021 2022
Migration of npower B2C + SME ✓
Wind down npower operations
Migration of E.ON UK B2C + SME
Ramp up of E.ON Next
Key achievements Priorities for 2021
• npower wind down in last stage • Wind down all npower operations
• All npower customer accounts migrated • Deliver on E.ON UK account migration
• E.ONnext operations ongoing
44Renewal of IT architecture to drive operational excellence
in Customer Solutions
Germany: Substantial ramp up of contracts to digital platform UK: Over 4mn accounts now migrated to the E.ONnext platform
million contracts of E.ON core brand million accounts All UK
accounts
>8 migrated
~6.5
>5.1 ✓
>4.0 ✓ >4.4 ✓
>2.0
✓
>1.0 ✓
FY 2020 H1 21 FY 21 FY 22 FY 2020 Q1 21 H1 21 FY 22
• Already today at competitive Cost-to-Serve level • High customer satisfaction at E.ONnext with Trustpilot rating of
4.4 (out of 5)
• Ambition: reduction to market leading level at
low teens (€/customer) • E.ON UK migration with up to 150k accounts per week
45E.ON’s performance culture adds sustainable
value to businesses and customers
German power network efficiency scores Sweden power network efficiency scores
>€600m additional revenues 100%
in regulatory period1 E.ON grids
100%
Very efficient
85%
95%
Industry average 94%
Efficient
70%
8/9 E.ON grids 1/9 E.ON grids
8/9 E.ON networks obtain a 100% efficiency score, All E.ON grids considered very efficient, with 2/3
with 3 obtaining a super efficiency bonus being 100% efficient
1. Based on ~€4bn allowed power cost base relevant for efficiency factor
46Financial Update
47Strict capital allocation framework leads to sound
investment profile
Sustainability focus Return framework Capital allocation in line with business priorities
Sustainability criteria: Hurdle rate composition: Indicative hurdle rates2:
✓ Enable energy transition WACC
(country & technology specific)
Supporting SDGs1
6-11%
✓
✓ Reduce customers‘ emissions Project specific risk premium 4-9%
Human rights violations
E.ON Group excess return target
Carbon heavy generation
3-8%
Environmental degradation Hurdle rate
1. UN Sustainable Development Goals 2. Illustrative hurdle rate ranges; post tax. Final hurdle is risk adjusted for each project and might vary 3. Includes New Solutions and
Energy Sales and Services 4. Includes City Energy Solutions and B2B Solutions 5. Excludes investments in Corporate Functions & Other and Non-Core 48Regulated earnings split share
EBITDA 20201
€bn
regulated
• Regulated or quasi
Earnings share of ~77%
~77%
(Quasi-)regulated
earnings
strong
• Network operations in countries with
6.9
regulatory frameworks
• Customer Solutions and Energy Networks
Energy Networks Customer Solutions Other2
diversified across European countries
1. Adjusted for non-operating effects 2. Other includes Corporate Functions & Other and Non-Core
49E.ON allocates ~90% of investments to infrastructure
Investments 2021 Investments 2021-2023
€bn €bn
~90%2 ~90%2
infrastructure infrastructure
~4.91 ~141
Energy Networks Customer Solutions Other3
1. Cash-effective investments including Corporate Functions & Other and Non-Core 2. Based on investments in Energy Networks and Customer Solutions 3. Corporate
Functions & Other and Non-Core 50Investments in Customer Solutions also with strong focus
on infrastructure
Energy Networks 2021-2023 Customer Solutions 2021-2023
€bn €bn
100% ~70%
~10.51 infrastructure
~2.81 infrastructure
B2B Solutions IT driven retail investments
City Energy Solutions New Solutions
Power Gas Other
UK smart meter roll-out E-mobility
1. Cash-effective investments
51Networks Capex breakdown 2021-2023
Germany Sweden CEE
€bn €bn €bn
7.31 1.21 2.01
~55% ~50% ~60%
investment in expansion investment in expansion investment in expansion
Maintenance Grid expansion Other
1. Cash-effective investments
52Attractive Group earnings growth driven by core business
EBIT1 Mid-term outlook core EBIT1
€bn CAGR
4.4-4.6
3.8
0.4
3.3
11-13%
Core CAGR
2020 2021 2022 2023 2021-2023
Guidance: Core Non-Core2
1. Adjusted for non-operating effects 2. In 2023 Non-Core consists of Enerjisa Üretim only – no production of PreussenElektra
53Earnings growth resulting from both Energy Networks and
Customer Solutions
Energy Networks EBIT1 Mid-term outlook1 Customer Solutions EBIT1 Mid-term outlook1
€bn €bn
0.8-1.0
3.3
2.9-3.1
0.7
0.5
0.4 0.1
0.1
2.2
0.4
2020 2021 2021-2023 -0.1 2021 2021-2023
2020
Guidance: Germany Sweden CEE & Turkey Guidance: Germany UK Benelux Other
1. Adjusted for non-operating effects
54Strong double digit EPS growth
Adjusted Net Income1 Earnings per share1 Mid-term outlook1 2
€bn € CAGR
2.2-2.4
1.6
0.63 0.84-0.92
Payout
12-14%
ratio
76%
2020 2021 2020 2021 2021-2023
Refinancing benefits until 2023 of ~€150m3
1. Adjusted for non-operating effects 2. Based on FY 2021 guidance excluding earnings effect in ANI of ~€0.5bn from nuclear production rights settlement 3. Amount of
55
refinancing benefits depends largely on refinancing conditions at time of bond issuanceClear set of deleveraging measures
Economic Net Debt
€bn
FY 2020
“Beat the
-8.7 • Further outperform the provisions by ~€0.5bn until 2022
provisions”
“Focus on the • Asset performance to outperform the liability
-8.1
long end” • Interest rate sensitivity of GER pensions1: +50bps → - ~€1.5bn
• Working Capital optimization program of ~€1.0bn
“Manage for
cash” • ~100% Cash conversion rate2
-24.0 • Disposal proceeds ~€1.5bn (e.g. restructuring Hungary, disposal
Belgium)
-40.7 • Settlement of nuclear lawsuits: Cash inflow of ~€500m3 expected
Asset Retirement Obligations Pensions Net financial position
1. Net sensitivity of DBO and assumed interest rate sensitivity of German plan assets. UK pension obligations largely funded 2. Cash Conversion Rate (CCR) = (OCF bIT+
56
provision utilization nuclear)/EBITDA 3. Including compensation for frustrated investments of €42.5mAccelerated progress towards debt factor target of 4.8x – 5.2x
Debt factor1
Guidance range for
5.9x debt factor of 4.8x-5.2x
in line with rating target
Strong 5.2x
BBB/Baa
rating target 4.8x
2020 2021 2022 2023
1. Economic Net Debt/EBITDA, EBITDA adjusted for non-operating effects. Based on interest rates as of 30.06.2021 with pension discount rates of 1.1% and 1.9%
for Germany and the UK respectively 57Dividend commitment fully in line with deleveraging
EPS1 2 above DPS growth… …lowers payout ratio… … allowing deleveraging and
sustainable dividend growth
5.9x Strong BBB/Baa rating
target
76%
Payout ratio
4.8x - 5.2x
2021 2022 2023 2020 2023 2020 2022 2023
1. Adjusted for non-operating effects 2. Based on FY 2021 guidance excluding earnings effect in ANI of ~€0.5bn from nuclear production rights settlement
58Funding strategy
2021 expected below
annual range
Volumes
€2-4bn p.a. • Bond refinancing
• Cash utilization of asset retirement obligations
Tenors
3-12 years preferred • Optimize maturity profile and interest costs
• Redemptions on any single day capped at €1bn
Green bonds
>50% • Going forward, majority of funding via green bonds
aligned with EU Taxonomy
Currencies
EUR preferred • Predominantly Euro-based asset base
• Regular and green bonds
• Private placements & promissory notes
Diversification
Instrument variety (Schuldscheindarlehen)
• Commercial paper 59Bond maturities
Bond maturities as of end H1 20211
€bn 17.2
Refinancing benefits
Volume
% Coupon until 2023 of up to
1.5 ~€150m2
1.3
1.2
1.0 5.7% 0.0% 1.1
5.9% 5.6%
0.9
0.8 0.8 0.7
0.0% 3.9%
0.5
6.5% 0.4%
0.8% 0.3 0.0% 3.0% 0.0% 1.0% 1.0%
5.5% 0.9%
5.5%
Q3 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q2 Q4 >2025
2021 2022 2022 2023 2023 2023 2024 2024 2024 2025 2025
1. Bonds issued by E.ON SE and E.ON International Finance B.V. (fully guaranteed by E.ON SE); bond issued by innogy Finance B.V. (fully guaranteed by innogy SE)
60
2. Amount of refinancing benefits depends largely on refinancing conditions at time of bond issuance; amount reflects the benefits compared to FY 2020Benchmark bonds of E.ON Group as of August 11, 20211
Volume in millions in Volume in millions in
Issuer respective currency Coupon Maturity Issuer respective currency Coupon Maturity
E.ON International Finance B.V. 1,000 EUR 6.500% Aug-21 E.ON SE 500 EUR 0.750% Feb-28
E.ON International Finance B.V. 500 GBP 5.500% Jul-22 E.ON SE 600 EUR 0.100% Dec-28
E.ON SE 500 EUR 0.000% Sep-22 E.ON SE 750 EUR 1.625% May-29
E.ON SE 750 EUR 0.000% Oct-22 E.ON International Finance B.V. 1,000 EUR 1.500% Jul-29
E.ON International Finance B.V. 2 750 EUR 0.750% Nov-22 E.ON SE 750 EUR 0.350% Feb-30
E.ON SE 1,000 EUR 0.375% Apr-23 E.ON International Finance B.V. 760 GBP 6.250% Jun-30
E.ON International Finance B.V. 488 GBP 5.625% Dec-23 E.ON SE 500 EUR 0.750% Dec-30
E.ON SE 750 EUR 0.000% Dec-23 E.ON SE 500 EUR 0.875% Aug-31
E.ON International Finance B.V. 800 EUR 3.000% Jan-24 E.ON SE 750 EUR 0.600% Oct-31
E.ON SE 500 EUR 0.875% May-24 E.ON SE 500 EUR 0.625% Nov-31
E.ON SE 750 EUR 0.000% Aug-24 E.ON International Finance B.V.3 975 GBP 6.375% Jun-32
E.ON International Finance B.V. 750 EUR 1.000% Apr-25 E.ON International Finance B.V. 600 EUR 5.750% Feb-33
E.ON SE 750 EUR 1.000% Oct-25 E.ON International Finance B.V. 600 GBP 4.750% Jan-34
E.ON International Finance B.V. 500 EUR 1.625% May-26 E.ON International Finance B.V. 900 GBP 5.875% Oct-37
E.ON SE 750 EUR 0.250% Oct-26 E.ON International Finance B.V.4 1,000 USD 6.650% Apr-38
E.ON SE 1,000 EUR 0.375% Sep-27 E.ON International Finance B.V. 700 GBP 6.750% Jan-39
E.ON International Finance B.V. 850 EUR 1.250% Oct-27 E.ON International Finance B.V. 1,000 GBP 6.125% Jul-39
1. Only bonds ≥€500m equivalent, all bonds are listed in Luxemburg, with exception of the unlisted USD bond under 144A/Regulation S 2. The bond was increased from €500m
61
to €750m 3. The bond was increased from £850m to £975m 4. Bond issued under rule 144A/Regulation SMaintaining a substantial liquidity buffer is a cornerstone of
E.ON’s risk management
• €1.5bn in cash & equivalents Key takeaways
Large volume of
• €1.2bn in short-term securities
liquidity1
• €1.8bn of non-current securities
• Early refinancings successfully completed
Bond refinancing Liquidity risk minimized
• 2021 funding needs expected to be covered
• Undrawn €3.5bn Revolving Credit Facility
Back-up RCF (RCF), fully committed by 21 banks, no
available MAC-clause2
• Extended by one more year until 2025
1. As per 30.06.2021 2. MAC = Material Adverse Change
62New Green Bond Framework overview:
Framework structure in line with draft EU Green Bond Standard
Process for selection
Green assets & Management of External
of green green assets Reporting
capex use-of-proceeds
+
and capex verification
• All projects directly • E.ON strives to maintain a • Annual reporting on net
• Electricity Networks (DSO)
contribute to, or enable portfolio matching/ proceeds
• Renewable Energy
Climate Change Mitigation exceeding outstanding • (Environmental) impact
• Energy Efficiency
• Eligible green activities green bonds reporting
• Clean Transportation
considering IFRS balance • Projects will be added on • Reporting in sustainability
sheet values or CapEx an on-going basis report (audited2)
• DNSH1 assessment for all • Eligible green portfolio
eligible activities monitored by Green Bond
• Eligibility assessment Committee
overseen by Green Bond
committee, chaired by CFO
ICMA Green Bond Principles 20183
Framework is aligned with the
Detailed assessment of full EU Taxonomy alignment in SPO
4 5
1. DNSH: Do no significant harm. 2. Limited assurance. 3. https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/
63
4. EU classification system for environmentally sustainable economic activities, draft delegated act as published in November 2020. 5. SPO: Second party opinion.Green Bond asset and capex categories
Electricity Networks (DSO) Renewable Energy Energy Efficiency Clean Transportation
All distribution infrastructure Renewable energy production Integrated on-site business EV charging stations and
and equipment in the inter- and storage including3 and city energy solutions, supporting infrastructure
connected European System1 including but not limited to:3
• Wind power and solar PV
as EU Taxonomy compliant • Bioenergy (Biomass, Biogas • District heating
+ and Biofuels)
• Hydrogen production,
• Production of heating/
cooling from waste heat
Additional assessment on a storage and distribution • Cogeneration of heating/
grid’s ‘greenness’, considering cooling and electricity from
new green grid connections or bioenergy and geothermal
grid emission factor2 energy
Green distribution grid activities are the core of E.ON’s
Green Bond portfolio
1. E.ON will exclude connections other than wind or solar energy as a proxy for connections of energy production facilities > 100g CO2/kWh 2. >67 % of newly connected
64
generation capacity in the systemPreussenElektra – Further ambition to ‘beat the provisions’
Solid track-record already until 2020 Nuclear Asset Retirement Obligations1
• Bundling of decommissioning activities €bn
2016 2017 2018 2019 2020
• Procurement successes by ‘convoy approach’
• Operational progress according to plan
Further optimization already planned and in execution -9 -8
-10 -10
• Decommissioning preparations starting early
• Operational excellence lifting dismantling performance
to next level (e.g. by increasing industrialization)
-21
1. In 2017 implementation of KFK solution (transfer of ~€10bn to German government fund)
65Appendix
66E.ON business segmentation
IFRS reporting divisions
Energy Networks Customer Solutions Corporate Non-Core
Functions &
DE SWE CEE1 & TR DE UK Benelux2 Other3 PE4 TR Gen5
Other
Power grid Energy
Energy sales and
Gas grid Infrastructure services
Solutions
(EIS) New
Additional businesses
Solutions
Regulated Decentral energy Energy
networks infrastructure retail
Infrastructure
1. Central and Eastern Europe, including Czech Republic, Hungary, Poland, Romania, Slovakia, Croatia and Slovenia 2. Belgium, The Netherlands and Luxemburg
67
3. Including Czech Republic, Hungary, Italy, Poland, Romania, Sweden, Turkey 4. PreussenElektra 5. Turkey GenerationClimate targets and progress on GHG emissions
E.ON‘s commitment E.ON‘s progress
Climate targets communicated GHG emissions development (million metric tons)
Scope 1 Scope 2 Scope 3
-10%
Scope -75%1 by 2030 120.1
108.1
1&2 -100%1 by 2040 -7%
-8% 4.8
44.3
4.5 41.8
3.9 3.6
1.9 70.8 61.3
1.8 4.5 4.2
1.9
-50%1 by 2030 1.7
Scope 3 20192 2020 20192 2020 20192 2020
-100%1 by 2050 Fuel combustion (building heat, company vehicles) Power distribution losses5 Power/heat generation (leased assets) and other3,6
Power and heat generation3,4 Purchased power Purchased goods and services
Fugitive emissions Combustion of natural gas sold to end-customers7
Purchased power sold to end-customers7
1. With reference to 2019 figures: Scope 1: 3.88m tons CO 2eq, Scope 2: 4.82m tons CO2eq and Scope 3: 120.27m tons CO2eq 2. Prior-year figures have been adjusted due to the subsequent adjustment
of certain figures. 3. From 2019 onward, emissions from power and heat generation are divided into emissions from plants owned and operated by E.ON (Scope 1) and emissions from plants leased to,
and operated by, customers (Scope 3). 4. The Greenhouse Gas Protocol and DEFRA attribute no direct CO2 emissions to energy generated at renewable facilities and nuclear power stations. This figure
includes emissions from power and heat generation from CHP assets leased to B2B customers since 2018. 5. Based on the emission factors of the national electricity mixes for specific regions.
6. Other incl. e.g. employee commuting and business travel 7. Scope 3 emissions from purchased power and the combustion of natural gas sold to end-customers are from energy sold to residential 68
and B2B customers only. Energy sold to sales partners and the wholesale market is not included.Sustainability reporting 2020
Integration Sustainability Report 2020 will
Successful integration in content and data collection process
innogy be fully consolidated reporting
2019 2020
• In 2020 we intensified our efforts to manage the interface between sustainability
Risk Significant progress in integrating
and risk management.
Management climate and non-financial risks
• Climate risk assessment was organizationally integrated into the Group’s
& TCFD into risk management processes
Enterprise Risk Management (“ERM”).
• Social impact of climate action has the power to either accelerate or prevent New climate paper published to
Just progress to decarbonize the energy sector support the annual climate-
Transition • Just Transition: Just Transition ensures that social issues are taken into related TCFD disclosure and
account in moving to a low carbon economy. transparency on Just Transition
• SASB: Industry-specific standards that identify the subset of sustainability- Initiated reporting against SASB
SASB related risks and opportunities most likely to affect a company’s financial in Sustainability Report 2020
Reporting condition, operating performance or risk profile (excluded from auditors
• Interest in SASB by investors & capital market on the rise assurance)
Focus SDGs of core business Further contribution
Impact on E.ON‘s business with strong
SDG positive impact on key SDGs
69E.ON‘s sustainability ratings
Rating: AA
Text 1 Rated on a AAA to CCC scale
High relative performance E.ON listed on
ESG Risk Rating: 18.2 (low risk)
Text 1 Rated on a 0 to 40+ scale
Rank 3 out of 62 in subindustry group
Rating: 61
Scored on a 0 to 100 scale
Text 1 Rank 19 out of 61 in industry group, highest A List
performance level (“Advanced”)
Leadership score
Rating: C+
Rated on a D- to A+ scale
Top 5%
Text 1
Decile rank 2 in industry group, high relative performance
70Building blocks of allowed revenues in Germany
Schematic illustration for 2020 (power & gas)
€bn
~21.2
Gas ~1.1
(New) Totex indexed to
Gas ~3.4 CPI and subject to Thereof: Thereof:
(Old) general and individual ~4.0 power ~8.5 power
efficieny targets ~0.7 gas ~1.1 gas
Power ~10.2
(New) ~9.6
~4.7
~6.5 40% Cap Opex ~3.0
Power
(Old)
~1.7 Capital Costs
Regulated asset Debt base2 Regulated equity Total allowed Adjustment of Allowed revenues
base1 base cost base revenues, lagged
(related to actual
Old assets: current (related to regulatory (Totex) recoveries and
costs; new assets: capital structure, capital structure,
minimum 60%) pass-through items
historic costs maximum 40%)
1. Old assets are those capitalized before January 1, 2006. New assets are those capitalized after January 1, 2006. Old assets are indexed up to 40% with asset-specific indices to
71
determine the current costs. Relevant asset base for calculation of allowed return in 2020 is 2016 for power and 2015 for gas 2. Debt base consists of non-interest and interest
bearing capitalUpcoming regulatory events in the next 3 years
SWE Q3 GER
January Determination of
Regulatory review
efficiency factor power
PL Start of new regulatory period PL for start of new
(general & individual) for
(possible shift to 2023) period in 2024
April October / 4th reg. period by
November BNetzA
POWER
HU Start of new GER
End of June January
regulatory period Determination
November GER
of return on GER Submission of cost SVK Start of new
equity appraisal to regulatory Determination of
expected BNetzA (power) period revenue cap (EOG)
(gas/power) for power by BNetzA
2021 2022 2023
End of June October GER Q3 November GER
Submission of GER HU Start of new Determination of Determination
GAS
cost appraisal regulatory efficiency factor gas of revenue cap
to BNetzA (gas) period (general & individual) for (EOG) for gas
4th reg. period by BNetzA by BNetzA
72Continuous improvement in operative performance
increases security of supply
SAIDI1,2 2019 vs. 2020 Power losses5 2019 vs. 2020
Germany Germany TWh
-12 % -1 %
25.0 22.0 7.26 7.1
2019 2020 2019 2020
Sweden Sweden TWh
122.0
+20 %3 146.0 0%
1.1 1.1
2019 2020 2019 2020
CEE4 CEE7 TWh
214.0 -14 % 184.0 -8 %
4.26 3.9
2019 2020 2019 2020
1. System Average Interruption Duration Index (minutes per year) 2. Figures are for the respective previous year: 2020 for 2019, 2019 for 2018. Prior-year figures were adjusted to reflect a new
calculation methodology 3. SAIDI increase due to weather related effects (e.g. a severe hurricane) in summer 2020 4. Calculated as arithmetic average of respective countries. 5. Aggregated 73
values for innogy and E.ON from 2019 onward. 6. Prior-year figures have been adjusted due to the recalculation incl. innogy. 7. CEE covers Czechia, Hungary, Poland, Romania.RAB growth further supported by local drivers
Power RAB development Local drivers
€bn
3-5% CAGR
• Renewable connections
Germany1 17.8 • Major customer projects
• Digitalization /modernization
2020 2023
3-5% CAGR
• Storm proofing
Sweden2 4.8 • Renewable connections
• Demand growth
2020 2023
8-10% CAGR
• New connections of B2B customers
Czech
1.7 • Modernization
Republic2
• Smartification
2020 2023
1. Assuming constant number of network concessions 2. Constant year-end 2020 FX-rate 74Leveraging strong partnerships and core competencies to
drive additional businesses
Long-term partnerships with municipalities … … create a competitive edge for additional businesses
Technical grid services Smart meters
Non-concession- Concession-
based RAB based RAB
e.g. O&M e.g. installation
~1/3 ~2/3
RAB
Broadband Water and waste-water
€22.4bn1
e.g. new customer e.g. supply and
connections operations
>9,000 … including other areas benefitting from our partnerships
concessions in Germany City Energy Solutions (CES)
Local heating and cooling solutions for
municipalities, districts and single sites
1. German power and gas RAB
75Network charges are only a small portion of German power price
Composition of average electricity price1 Decarbonization currently not optimally supported,
electricity disadvantaged
• Renewables surcharge to be borne by more customers
Electricity Renewable
• Carbon minimum price or tax
procurement, surcharge
• Electricity tax to be redesigned
retail margin
Further taxes
Network
and levies
charges German power price needs to be ‘cleaned up’
Only
25%
1. Source: BDEW 2021
76Settlement of all material remaining nuclear lawsuits at
favorable terms
Agreement on costs for production rights
48 TWh €0/MWh
13 TWh € 181m
77Upgraded outlook 2021 due to nuclear production rights
agreement
Non-core FY2021 outlook 1 Key takeaways
EBITDA EBIT • Proposal on the agreement of the use of nuclear
€bn €bn production rights adopted by all necessary legislative
bodies in June 2021
1.2-1.4
• EBITDA impact of ~€0.4bn in 2021
0.8-1.0 0.8-1.0 • EBIT impact of ~€0.6bn with ~€0.5bn in Q2 2021
and rest equally distributed in H2 2021
0.2-0.4 • Cash payment expected in Q4 2021
Guidance as of New guidance Guidance as of New guidance
March 2021 for FY2021 March 2021 for FY2021
78
1. Adjusted for non-operating effectsH1 2021 Results
Financial AppendixSegment outlook 2021 remaining year
EBIT1 key drivers H2 2021
Energy Networks Customer Solutions Non-Core
+• Covid-19 impact in 2020 +• Covid-19 impact in 2020 PreussenElektra:
+• Lower depreciation from purchase
Germany: Benelux: of production rights
•– Regulatory cycle –• Disposal Belgian retail –• 2020: Extra dividend payment
•– Flood impact Urenco
Germany:
CEE & Turkey: +• Synergies ramp-up
•– Hungary: Restructuring UK:
(disposal ETI /ÉMÁSZ)
+• Restructuring UK
(target ~ GBP100m EBIT for
FY 2021)
1. Adjusted for non-operating effects 80Financial highlights
€m H1 2020 H1 2021 % YoY
Sales 30,503 33,040 +8
1
EBITDA 3,679 4,768 +30
1
EBIT 2,185 3,163 +45
Adjusted Net Income 1 950 1,765 +86
OCFbIT 1,521 2,171 +43
Investments 1,422 1,908 +34
Economic Net Debt² -40,736 -40,866 0
1. Adjusted for non-operating effects 2. Economic Net Debt as per 30 June 2021 and 31 Dec 2020; Economic Net
Debt definition takes into account the decommissioning provisions calculated with a real discount rate of 0.0% as
opposed to IFRS AROs; bonds issued by innogy are recorded at their nominal value: the amount in the consolidated 81
balance sheets is €2.1bn (as of 31 Dec 2020) respectively €2.0bn (as of 30 June 2021) higherCash Conversion Rate1 of 49% in H1 2021 in line with
seasonality
€bn
49% CCR1
4.8
-0.2
2.2
-2.4 1.2
-0.5
-0.5
-1.9 -0.7
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. Adjusted for non-operating effects 3. Incl. non cash-effective EBITDA items, provision 82
utilizations and payments related to non-operating earningsEND unchanged despite high investments and dividend
payment
€bn
-8.6
Asset Retirement Obligations (ARO)
-8.6 Pension provisions
Net financial position -6.4
-6.4
-25.7 -25.9
-0.8 0.0
+1.8
-1.5 +0.3
-40.8 -40.9
END OCF Net Investments Pensions2 Dividends Other END
Q1 2021 Q2 2021 Q2 20211 (incl. AROs) Q2 2021
83
1. Net of divestments 2. Actuarial interest rates for German pensions at 1.1% (vs. 1.2% @ Q1 2021), for UK pensions at 1.9% (vs. 2.0% @ Q1 2021)Divisions: Energy Networks
EBIT1 Drivers
€m
+• Covid-19 impact in 2020
1,652
+8% 1,777
All
+• Organic RAB growth
CEE & Turkey 321 391 +• Normalized weather (vs. H1 2020)
Sweden 186 192 Germany
–• Regulatory cycle
Germany 1,145 1,194
CEE & Turkey +• Slovakia: first time contribution of VSEH2
H1 2020 H1 2021
€m Germany Sweden CEE & Turkey Total
H1 2020 H1 2021 % YoY H1 2020 H1 2021 % YoY H1 2020 H1 2021 % YoY H1 2020 H1 2021 % YoY
Revenue 7,052 7,193 +2 444 487 +10 1,212 1,384 +14 8,708 9,064 +4
EBITDA1 1,841 1,899 +3 263 276 +5 481 562 +17 2,585 2,737 +6
EBIT1 1,145 1,194 +4 186 192 +3 321 391 +22 1,652 1,777 +8
thereof equity-method earnings 119 128 +8 0 0 - 66 72 +9 185 200 +8
OCFbIT 1,316 1,169 -11 296 297 +0 454 570 +26 2,066 2,036 -1
Investments 873 836 -4 161 177 +10 265 307 +16 1,299 1,320 +2
1. Adjusted for non-operating effects 2. Slovakian business acquired from RWE in Q3 2020 84Divisions: Customer Solutions
EBIT1 Drivers
€m +• Covid-19 impact in 2020
+75% 838
All
+• Normalized weather (vs. H1 2020)
355
Germany 480 UK +• Restructuring benefits
Benelux 68
273 163
UK
57 66
252
+• Strong operational performance
Other 84 Other
H1 2020 H1 2021 +• Sweden: one-off effect
€m Germany Benelux UK Other Total
H1 2020 H1 2021 % YoY H1 2020 H1 2021 % YoY H1 2020 H1 2021 % YoY H1 2020 H1 2021 % YoY H1 2020 H1 2021 % YoY
Revenue 11,154 11,616 +4 1,489 1,676 +13 7,356 7,755 +5 4,593 5,216 +14 24,592 26,263 +7
EBITDA1 330 419 +27 90 100 +11 132 221 +67 187 370 +98 739 1,110 +50
EBIT1 273 355 +30 57 68 +19 66 163 +147 84 252 +200 480 838 +75
thereof equity-method earnings 2 2 - 2 4 +100 - - - 3 4 +33 7 10 +43
OCFbIT -496 -34 +93 -74 -104 -41 86 -7 -108 165 416 +152 -319 271 +185
Investments 98 98 +0 19 18 -5 52 32 -38 163 158 -3 332 306 -8
1. Adjusted for non-operating effects 85Non-Core business
EBIT1 Drivers
€m
+•
+198%
Nuclear production rights agreement
717 Preussen (~€500m)
Elektra +• Higher availability of plants
Preussen 694
Elektra 241 Turkey –• FX effects
Generation 222 Generation +• Improved operational performance
Turkey 23
19
H1 2020 H1 2021 PreussenElektra: Hedged Prices (€/MWh)
€m PreussenElektra Generation Turkey Total
as of 30 June 2021
H1 2020 H1 2021 % YoY H1 2020 H1 2021 % YoY H1 2020 H1 2021 % YoY
Revenue 696 710 +2 - - - 696 710 +2
2020 100% 45
1
EBITDA 461 1,017 +121 19 23 +21 480 1,040 +117
2021 96% 45
EBIT1 222 694 +213 19 23 +21 241 717 +198
thereof equity-method earnings 27 26 -4 19 23 +21 46 49 +7
OCFbIT 251 287 +14 0 32 - 251 319 +27
2022 71% 47
Investments 158 148 -6 - - - 158 148 -6
69%
1. Adjusted for non-operating effects 86Adjusted Net Income
€m H1 2020 H1 2021 % YoY
EBITDA1 3,679 4,768 +30
Depreciation/amortization -1,494 -1,605 -7
1
EBIT 2,185 3,163 +45
Economic interest expense (net) -559 -496 +11
1
EBT 1,626 2,667 +64
1
Income Taxes on EBT -406 -614 -51
% of EBT 1 -25% -23% +8
Non-controlling interests -270 -288 -7
1
Adjusted Net Income 950 1,765 +86
1. Adjusted for non-operating effects 87Reconciliation of EBIT to
IFRS Net Income
€m H1 2020 H1 2021 % YoY
1
EBITDA 3,679 4,768 +30
Depreciation/Amortization/Impairments -1,494 -1,605 -7
1
EBIT 2,185 3,163 +45
Interest result -332 -361 -9
Net book gains 159 59 -63
Restructuring -305 -176 +42
Mark-to-market valuation of derivatives -351 1,201 +442
Impairments (net) -16 -12 +25
Other non-operating earnings -301 -381 -27
Income/Loss from continuing operations before income taxes 1,039 3,493 +236
Income taxes -649 -721 -11
Income/loss from continuing operations 390 2,772 +611
Income/loss from discontinued operations, net -63 0 +100
Net income/loss 327 2,772 +748
Non-controlling interests -166 -224 -35
Net income/loss attributable to shareholders of E.ON SE 161 2,548 +1,483
1. Adjusted for non-operating effects 88Cash-effective investments
€m H1 2020 H1 2021 % YoY
Energy Networks 1,299 1,320 +2
Customer Solutions 332 306 -8
Corporate Functions & Other -365 133 +136
Consolidation -2 1 +150
Non-Core 158 148 -6
Investments 1,422 1,908 +34
89Economic Net Debt1
€m 31 Dec 2020 30 Jun 2021
Liquid funds 4,795 3,523
Non-current securities 1,887 1,790
Financial liabilities -30,720 -31,399
2
Adjustment FX hedging 82 216
Net Financial Position -23,956 -25,870
Provisions for pensions -8,088 -6,400
Asset retirement obligations -8,692 -8,596
Economic Net Debt -40,736 -40,866
1. Economic Net Debt definition takes into account the decommissioning provisions calculated with a real
discount rate of 0.0% as opposed to IFRS AROs; bonds issued by innogy are recorded at their nominal value:
90
the amount in the consolidated balance sheets is €2.1bn (as of 31 Dec 2020) respectively €2.0bn (as of 30
June 2021) higher 2. Net figure; does not include transactions relating to our operating business or asset
managementEconomic interest expense (net)
Difference
€m H1 2020 H1 2021
(in € m)
Interest from financial assets/liabilities -526 -487 39
Interest cost from provisions for pensions and similar provisions -47 -31 16
Accretion of provisions for retirement obligation and similar provisions -2 0 1
Construction period interests¹ 4 3 -1
Others 12 19 7
Net interest result -559 -496 62
1. Borrowing cost that are directly attributable to the acquisition, construction or production of a qualified asset.
Borrowing cost are interest costs incurred by an entity in connection with the borrowing of funds. (interest rate:
91
3.11%)Financial calendar & important links
Financial calendar
November 10, 2021 Quarterly Statement: January – September 2021
November 23, 2021 Capital Markets Day 2021
March 16, 2022 Annual Report 2021
May 11, 2022 Quarterly Statement: January – March 2022
May 12, 2022 2022 Annual Shareholder Meeting
August 10, 2022 Half-Year Financial Report: January – June 2022
Important links
Presentations https://www.eon.com/en/investor-relations/presentations.html
Facts & Figures 2021 https://www.eon.com/content/dam/eon/.../210324_Facts_and_Figures_final.pdf
Annual Reports https://www.eon.com/en/investor-relations/financial-publications/annual-report.html
Interim Reports https://www.eon.com/en/investor-relations/financial-publications/interim-report.html
Shareholder Meeting https://www.eon.com/en/investor-relations/shareholders-meeting.html
Green Bond Framework https://www.eon.com/en/investor-relations/bonds/green-bonds.html
Sustainability Report https://www.eon.com/en/ueber-uns/nachhaltigkeit/nachhaltigkeitsbericht.html
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