Capital Markets Story - February 2021
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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 2019 Dividend per share 2019 Group EBIT 20191 Adj. Net Income 20191 78,948 0.46€ ~€4.1bn ~€1.6bn 3 1. Adjusted for non-operating effects; pro-forma figures FY 2019, not audited
E.ON’s two core businesses Energy Networks Customer Solutions ~€33bn Regulated Asset Base ~53m customers across Europe2 Germany €21.9bn Germany 13.9m Sweden €3.8bn UK 10.5m3 CEE & Turkey €7.6bn1 Other ~28m4 ~74 GW renewables capacity ~30% of adj. EBIT5 from decentral connected to E.ON networks energy infrastructure ~20% of renewable assets in Europe 4x Top 1 market leading positions connected to E.ON networks 6x Top 3 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. 2019 adjusted due to the disposal of EKER in Hungary and first-time consolidation of VSEH in 4 Slovakia 5. Adjusted for non-operating effects
Table of contents 1 9M 2020 Update ………………..……………..……………………………………………………… 6 2 Strategic Update ……………………………...……………………………………………………… 15 3 Financial Update ……………………………...……………………………………………………… 38 4 Appendix …………………………..……………..………………………………………………………… 53
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 significant impact on E.ON FY 2020 ✓ Mid-term targets and dividend guidance confirmed Adj. EBIT Adj. Net Economic Net Debt Income ✓ Integration of innogy and synergy delivery fully on track 9M 2019 30 Jun 2020 9M 2020 30 Sep 2020 1. Adjusted for non-operating effects; pro forma figures 9M 2019, not audited 7
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 systems Storage infrastructure earmarking in E.ON markets2 Energy efficiency in the industry sector and for SMEs Infrastructure for renewable energy €31.5bn Renovation of private and public buildings (focus on schools and hospitals) Renewable hydrogen 200 digital earmarking in E.ON markets2 potential Smart and sustainable mobility projects Smart grids identified Member States Preparation Application Expected funds allocation - Specific (Aug- Dec 2020) (Jan4-Apr 2021) (May-Jun 2021) investment Ongoing engagement of national Submission of NRRPs3 by Timeline and funding instruments areas and governments with the EU Member States to EU vary between Member States, e.g. instruments Commission to draft plans Commission outlining national lengthy and competitive bidding investment and reform agendas procedures possible 1. Under political negotiation, list simplified and not-exhaustive 2. €312.5 bn under Recovery and Resilience Facility (RRF) of which €157.7bn are allocated to E.ON countries; climate earmarking rate of 37% resulting in 8 €58.4bn, digital earmarking of 20% resulting in €31.5bn 3. National Recovery and Resilience Plans 4 According to the draft Regulation, the NRRP submission started officially on Oct 15th, but we expect Member States will submit after the EU legal framework is finalized, so likely starting in January. Source: European Commission
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% / -4%2 ○ GER 80% UK NL 70% Mar April May Jun Jul Aug Sep Oct unchanged/low slight change/medium worsened/high • Customer Solutions: demand levels recovered above • Payment behavior of customers remains unchanged expectations in Q3 leaving enough cushion. No need for compared to pre Covid-19: UK only market with higher day of further sell-backs expected sales, but unchanged vs. H1 2020 • Energy Networks: volume related effects recoverable in • UK related working capital impact started to reverse from 2022 – 20243 ~€100m to ~€50m • Current selective lockdown measures in E.ON • Bad debt: Covid-19 related total Group bad debt provision countries without significant impact on E.ON slightly increased by ~€10m to ~€45m at the end of Q3 FY 2020 financials 2020 1. Source: entso-e 2. Period 1 Jan 2020 – 26 Oct 2020 3. Period for recovery of lower revenues in 2020 in Germany 9
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 (volumes) – • Sweden: lower WACC in new regulatory period Customer -40 Solutions ~€-130m Covid-19 impact –• Covid-19: sell-back of volumes Corp. Functions (sell-backs, volumes Customer (B2B) & bad debt & Other, Cons. -8 & bad debt) Solutions – • Weather impact on volumes + • UK: restructuring benefits Non-Core -28 +/– • PreussenElektra: higher achieved prices, 9M 2020 2,688 2,688 ~€2.9bn (excl. Covid-19) Non-Core higher depreciation from purchase of production rights – • Turkey Generation: one-off effect in 9M 2020 1. Adjusted for non-operating effects; pro forma figures 9M 2019, not audited 10
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 11
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) END H1 2020 3Q 2020 3Q 20201 9M 2020 1. Net of divestments; including disposal of EKER in Hungary 2. Actuarial interest rates for German pensions at 1.0% (vs. 1.2% @ H1 2020), 12 for UK pensions at 1.6% (vs. 1.6% @ H1 2020)
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 17-22% CAGR Capital structure with cash conversion strong BBB/Baa Average rate3of 95% rating 1. Adjusted for non-operating effects; CAGR’s technically adjusted to new 2020 guidance, recovery of Covid-19 effects not yet reflected 2. Includes transaction related effects; cash-effective capex outlook excluding transaction related effects amounts to ~€4.6bn 3. Excluding provision utilization for nuclear decommissioning, average for 13 2020-2022
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 Customer Solutions 0.541 0.4-0.6 Non-Core 0.366 0.3-0.5 Corporate Functions & Other -0.341 ~-0.4 ANI1 1.573 1.5-1.7 17-22% CAGR EPS1 €0.60 €0.58-0.65 17-22% CAGR Dividend €0.46 up to 5% p.a. up to 5% p.a. Capex2 4.435 ~4.24 ~13 Energy Networks 3.149 ~3.4 ~9.7 Customer Solutions 1.008 ~0.8 ~2.7 Leverage 5.6x ~5x 1. Adjusted for non-operating effects 2. Cash-effective investments 3. Pro forma figures FY 2019, not audited, reflecting transaction adjustment 4. Includes transaction 14 related effects; capex outlook excluding transaction related effects amounts to ~€4.6bn
Strategic Update
Why invest in E.ON? 1 We commit to a sustainable dividend per share growth of up to 5% annually until 2022 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 16
Why invest in E.ON? Dividend growth Customer centric energy infrastructure Sustainability Performance 17
Net 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 2019: >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 18 (Scope 1 and 2), 50% reduction of Scope 3 emissions by 2030, carbon neutrality by 2050 (including Scope 3). Base year: 2019 pro forma 5. UN Sustainable Development Goals
Decarbonization means deep electrification European1 energy demand 2015 vs. 2050… … with huge impact on energy infrastructure TWh Increase of electricity demand (+90%) ~12,500 • Deep electrification of different sectors and -40% ~7,000 decentral generation creates the need for substantial grid investments • Substitution of fossil fuel consumption through green electricity +90% ~67% Reduction of total energy demand (-40%) ~20% 2015 2050 • Major decarbonization goals provide business opportunities for energy efficiency products and services Power Other 1. Considering EU27, Source: https://www.eea.europa.eu/data-and-maps/figures/primary-and-final-energy-consumption (energy demand)/ http://inrestruct.com/wp- 19 content/uploads/2015/04/Practical-guide-to-a-low-carbon-Europe-2050.pdf (power demand)
Decentralization 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 Flexibility Predictive Maintenance Network operation Data, AI Control Data-driven decisions with Center (data distribution) machine learning Asset Automated Grid Monitoring Planning Generation Network Buildings Grid Smartification Physical Intelligent substation collects real-time assets (data generation) E-mobility data from our networks to enhance grid Broadband management 20
Why invest in E.ON? Dividend growth Customer centric energy infrastructure Sustainability Performance 21
E.ON transformed into Europe’s energy infrastructure powerhouse E.ON’s strategy implementation accelerated by innogy takeover Long-term 2x 2x ~80% Integration ~€740m energy infrastructure Regulated Asset Base1 customer accounts regulated earnings bundling of synergies delivery of annual net substitutes increasingly with benefits for for the benefit of our synergies by 2022 merchant renewable credit rating2 customers assets 1. German RAB 2. Based on 2020 EBIT, EBIT adjusted for non operating effects 22
Infrastructure 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 City Energy Solutions and B2B Solutions 23 4. Excludes investments in Corporate Functions & Other and Non-Core
Energy 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 24 1. Assuming 2% inflation beyond 2020
E.ON is the leading energy network company in Northern and Central Europe E.ON Regulated Asset Base (RAB) – regional split € bn Total RAB1, 2 33.2 Sweden Germany CEE2 &Turkey2 Power RAB Gas RAB 3.8 21.9 7.6 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 25 methodical differences. These include for example different regulatory asset lifetimes, asset valuation methods or treatment of customer contributions for network connections. Central Eastern Europe including: Czech Republic, Hungary, Poland, Romania, Slovakia 2. 100% view for Slovakia and Turkey
Long-term RAB growth with further upside potential E.ON Regulated Asset Base1 growth € bn Power 33.2 4-5% • Multi-decade growth potential CAGR2 stemming from mega-trends Gas Power 27.7 • Optimizing our existing gas asset base with limited investment needs • Future growth option from hydrogen Gas 5.5 2019 2022 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 26 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. Constant year-end 2019 FX-rates 2. Relates to power RAB
Gas distribution with stable earnings and limited capex Gas activities closely coupled with power business Limited capex spent on gas ~90% of German gas network business is ~5% of Group capex is spent 1 linked to electricity concessions on our gas business The role of gas in German heating market2 Future potential for industry and transport 37% 37% Other 14% 50% 26% District heating Gas H2 37% Existing connections New-builds 1. Cash effective investments, average for 2020-2022 2. Source: BDEW 2020 27
Four years of regulatory stability Regulatory periods per country 2020 2021 2022 2023 2024 2025 2026 2027 2028 Germany (Gas) Slovakia1 Turkey Poland Czech Republic1 Hungary Romania 70%2 of the Energy Networks Germany (Power) EBIT is highly visible until 2024 Sweden 1. Length of upcoming regulatory period still under discussion 2. Based on 2019 pro forma EBIT, adjusted for non operating effects 28
Exemplary earnings components beyond allowed return Opex efficiencies Regulatory cost Actual opex vs. allowed opex recognition Total Allowed RAB growth = regulated return Capex efficiencies Outperformance of standard Special incentives E.g. reliability and earnings prices set by regulator network losses Allowed return Additional earnings components in our markets 29
Leveraging 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 €21.9bn1 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 30
Earnings growth from reducing carbon emissions via decentral energy infrastructure Low temperature heating Large B2B solutions/district and cooling grids heating grids Top 2 E.g. ectogrid: zero emission On-site generation solutions energy hybrid system with up Average contract duration: 15-40 years to 20% cost savings market position in Sweden and Germany1 ~25% City quarter solutions Integrated energy concepts Single/multi-site solutions Decentralized sustainable local energy CAGR EBIT 2020-20222 e.g. Werksviertel Munich solutions (e.g. PV at Audi in Győr, Hungary) Average contract duration: 20-40 years 1. City Energy Solutions, based on heating volumes sold 2. City Energy Solutions and B2B Solutions, EBIT adjusted for non operating effects 31
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 13,6 2,3 2,2 4,2 4,1 9,8 10,0 2,0 2,1 2,7 2,8 FY 2019 9M 2020 FY 2019 9M 2020 Germany 2 UK3 Benelux4 Other5 Turkey 1. Including at-equity participations; earnings of Customer Solutions business of Croatia, Slovenia and VSEH allocated to Energy Networks due to size 2. 2019 adjusted due 32 to the disposal of substantial parts of the heating customer business 3. To standardize reporting, the definition of customers was adjusted 4. 2019 adjusted for the acquisition of the Dutch energy utility VandeBron 5. 2019 adjusted due to the disposal of EKER in Hungary and first-time consolidation of VSEH in Slovakia
Why invest in E.ON? Dividend growth Customer centric energy infrastructure Sustainability Performance 33
Performance culture is part of our DNA Transaction related synergies npower & E.ON customers migrated Operational excellence onto new platform E.ONnext ✓ Synergy delivery on track EBIT1 development Continuous improvement GBP m ~100m ✓ 5% achieved in 2019 Digitalization & innovation 2019 2022 2023 >2023 ✓ Measures validated and Earnings improvement: Combined delivery de-risked EBIT1 of at least GBP100m in 2022 Regulatory outperformance and improvement beyond ✓ €740m confirmed target Free cash flow will be Customer satisfaction by 2022 positive2 from 2023 onwards Top priorities Performance culture 1. Adjusted for non operating effects 2. After smart meter investments 34
Synergy delivery fully on track Estimated transaction related net synergies1 of ~€740m Synergy delivery by division ~100% 27% ~45% 53% ~20% 5% ✓ 20% 2019 2020 2021 2022 1. Start of voluntary 1. Full integration of 1. Synergies in Energy Customer Solutions leave program headquarter Networks Energy Networks 2. External budget cut 2. Organizational 2. Integration of 3. Optimization of IT integration of customer portfolios Central Functions, IT and Other services Customer Solutions 3. Consolidation of IT businesses landscape 1. Net accretive to EBIT, EBIT adjusted for non operating effects and before implementation costs (implementation costs not included in adjusted EBIT) 35
Renewal of IT architecture to drive operational excellence in Customer Solutions Germany: Substantial ramp up of contracts to digital UK: npower customer migration started in July 2020 as platform scheduled million contracts All German million contracts contracts migrated1 All E.ON UK contracts migrated All npower ~4 contracts migrated ~1 > 0.1 > 0.4 > 1.0 Mar 20 Jun 20 Sep 20 Dec 20 Dec 22 Aug 20 Oct 20 Dec 20 Q2 21 H2 22 • Already today at competitive Cost-to-Serve level • Already surpassed the level of 1 million contracts by early • Ambition: reduction to market leading level at November 2020 low teens (€/customer) • Over 250,000 first bills sent to customers via new platform 1. Compared to business plan announced in November 2019 2. After smart meter investments 3. Majority to be shown in non-operating result 36
E.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 37
Financial Update
We commit to annually grow the dividend per share by up to 5% Dividend per share (DPS) €0.43 €0.46 €0.30 €0.21 Growth beyond 2016 ✓ 2017 ✓ 2018 ✓ 2019 ✓ 2020 2021 2022 39
E.ON’s 2020-2022 delivery plan confirmed Dividend per share (DPS) growth up to 5% p.a. Group EBIT1 growth Group EPS growth 1 11-13% CAGR 17-22% CAGR Average cash conversion Capital structure with strong rate2of 95% BBB/Baa rating 1. Adjusted for non-operating effects; CAGR’s technically adjusted to new 2020 guidance, recovery of Covid-19 effects not yet reflected 2. Excluding provision utilization for 40 nuclear decommissioning, average for 2020-2022
Strict 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 41 Commodity Sales and Services 4. Includes City Energy Solutions and B2B Solutions 5. Excludes investments in Corporate Functions & Other and Non-Core
E.ON allocates ~75% of investments to Energy Networks Investments 2020 Investments 2020-2022 € bn € bn ~90%2 ~90%2 infrastructure infrastructure ~4.21 ~131 Energy Networks Customer Solutions Other3 1. Cash effective investments including Corporate Functions & Other and Non-Core, assuming no further severe lockdowns in our major markets, includes transaction related 42 effects; Capex outlook excluding transaction related effects amounts to ~€4.6bn for 2020 2. Based on investments in Energy Networks and Customer Solutions 3. Corporate Functions & Other and Non-Core
Investments with strong focus on infrastructure Energy Networks 2020-2022 Customer Solutions 2020-2022 € bn € bn 100% ~65% ~9.71 infrastructure ~2.71 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, assuming no further severe lockdowns in our major markets 43
Attractive Group earnings growth EBITDA1 EBIT1 Outlook1 € bn € bn CAGR 0,6 6.9 1,1 6.8-7.0 4.1 5-6% 3.6-3.8 EBITDA 0,4 11-13% 0,5 5,4 3,5 EBIT 2019 2020 2019 2020 2020-2022 pro forma pro forma Guidance: Energy Networks Customer Solutions Corporate Functions & Other Non-Core 1. Adjusted for non operating effects; assuming no further severe lockdowns in our major markets 44
Mid-term growth in Energy Networks earnings backed by organic RAB growth EBITDA1 EBIT1 Outlook1 € bn € bn 5.4 5.0-5.2 1,0 3.5 0,7 3.1-3.3 0,6 0,5 3,7 2,4 2019 2020 2019 2020 2020-2022 pro forma pro forma Guidance: Germany Sweden CEE & Turkey 1. Adjusted for non operating effects; assuming no further severe lockdowns in our major markets 45
Customer Solutions earnings growth driven by digitalization and UK turnaround EBITDA1,2 EBIT1 Outlook1 € bn € bn 1.0-1.2 1.1 0.5 0.4-0.6 0,3 0,1 0,2 Decentral energy 0,1 infrastructure 0,6 ~30% 0,5 2019 2020 -0,2 2020 2020-2022 pro forma 2019 pro forma Guidance: Germany UK Benelux Other 1. Adjusted for non operating effects; assuming no further severe lockdowns in our major markets 2. ~30% EBITDA share relating to decentral energy infrastructure 46
Strong EPS growth of 17-22% Adjusted Net Income1 Earnings per share1 Outlook1 € bn € CAGR 1.5-1.7 1.6 0.60 0.58-0.65 Payout 17-22% ratio 77% 2019 2020 2019 2020 2020-2022 pro forma pro forma 1. Adjusted for non-operating effects; assuming no further severe lockdowns in our major markets 47
Significant refinancing benefits over the next three years Bond maturities as of end 9M 20201,2 € bn Refinancing benefits 17.1 Volume until 2022 of up to % Coupon 1.7 ~€200m3 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 2022 2023 2023 2023 2024 2024 2024 1. Bonds issued by E.ON SE and E.ON International Finance B.V. (fully guaranteed by E.ON SE); bonds issued by innogy SE and innogy Finance B.V. (fully guaranteed by innogy SE) 48 2. Including innogy EIB-loan €645m 3. Amount of refinancing benefits depends largely on refinancing conditions at time of bond issuance
Green financing is an integral part of our funding strategy Total investments 2020-2022 To finance our investments we have tapped the € bn green bond market … 95% €4.6bn outstanding energy transition investments2 … and intend to issue more: 131 ~€1bn p.a. Revolving credit facility linked to sustainability ratings: €3.5bn Energy Networks Customer Solutions Other3 1. Cash effective investments including Corporate Functions & Other and Non-Core, assuming no further severe lockdowns in our major markets 2. Based on investments in 49 Energy Networks and Customer Solutions 3. Corporate Functions & Other and Non-Core
E.ON’s approach to manage Economic Net Debt Economic Net Debt € bn 9M 2020 “Beat the • 0% real discount rate floor reached: only upside -8.8 provisions” • Further upside: outperforming provisions by operational excellence “Focus on the • UK pension obligations largely funded -8.6 long end” • Sensitivity GER pensions: -50bps +€1.6bn • Duration of pension obligation ~18 years -24.6 “Manage for • Sound management of cash flow cash” • Re-financing benefits from lower interest rates -42.1 Asset Retirement Obligations Pensions Net financial position 50
Rating target re-confirmed, positive END effects above initial expectations Leverage factor1 Selected END effects 2020-20223 • 95% Cash conversion rate4 Strong BBB/Baa rating target ↑• Working Capital optimization program & ARO5 reduction ~+€1.5bn (before: ~+€1bn) 5.6x (ARO reduction: ~€200m already achieved 2019) • Nord Stream 1 transfer to pension fund executed ~+€1bn ~5x • Transaction effects +/-€0bn (before: -€0.5bn) Remedies, merger squeeze-out, locked box, restructuring Hungary • Integration costs up to ~-€1bn 2019 2022 pro forma2 1. Economic Net Debt/EBITDA, EBITDA adjusted for non-operating effects 2. Reflecting transaction adjustment (END FY 2019 reduced by ~€0.5bn) 3. Negative effect 51 indicates increase of Economic Net Debt and vice versa 4. Excluding provision utilization for nuclear decommissioning, average for 2020-2022 5. Asset Retirement Obligations
Dividend commitment fully in line with deleveraging EPS1 above DPS growth… …lowers payout ratio… … allowing deleveraging and sustainable dividend growth 5.6x Strong BBB/Baa rating target 77% Payout ratio ~5x 2019 2020 2021 2022 2019 2022 2019 2022 pro forma pro forma pro forma 1. Adjusted for non operating effects; assuming no further severe lockdowns in our major markets 52
Appendix
E.ON new segmentation from 2020 onwards IFRS reporting divisions Energy Networks Customer Solutions Corporate Non-Core Functions & DE SWE CEE1 & TR Benelux2 DE UK Other3 PE4 TR Gen5 Other Power grid City Energy Energy Solutions sales and Gas grid (CES) services New Additional businesses B2B Solutions 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 54 3. Including Czech Republic, Hungary, Italy, Poland, Romania, Sweden 4. PreussenElektra 5. Turkey Generation
E.ON’s strong ESG profile Environmental Social Governance Climate neutrality by 2040 Variety of nationalities, cultures, generations and genders Supervisory (Scope 1 & 2) & by 2050 Diversity Experienced, diverse and independent in management & workforce Board (including Scope 3)1 Avoided emission together with Health & Creation of a work environment Efficient cooperation in Board our clients that protects the health and safety Safety Committees 2019: > 100mtons of customers and employees Supervisory Climate Board Commitment to respect Committees Driving the energy transition through decentral & digital Human human rights, uphold labor Creation of Innovation and Rights standards, and fight against Sustainability Committee local networks corruption Security of Energy Networks: High Remuneration system closely Energy efficiency solutions with our energy clients to reduce carbon emissions supply resilience due to high degree Remuneration aligns management’s and of underground cabling shareholder’s interest 1. Carbon neutrality by 2040 (Scope 1 and 2), 75% carbon reduction by 2030 (Scope 1 and 2), 50% reduction of Scope 3 emissions by 2030, carbon neutrality by 2050 55 (including Scope 3). Base year: 2019 pro forma
E.ON’s sustainability awards, ratings and rankings CDP Score: A Text 1 Result: AA Text 1 Sector Average: C Overall ESG Risk Score = 81 Overall ESG Score: 3.2 Text 1 (Leader Group) Text 1 Sub Sector Average Multiutilities: 2.8 Relative Position 11 out of 192 Industry Average Utilities: 2.5 E.ON is index member1, i.e. one E.ON ranks 4th in the Green Utilities Text 1 of the advanced companies in Text 1 Report from Energy Intelligence (EI) Europe – score: 61/100 Group Rating: C+ Text 1 E.ON ranks 6th out of 30 1. Vigeo/EIRIS has rebranded as V.E, affiliate of Moody’s 56
Building blocks of allowed revenues in Germany Schematic illustration for 2019 (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 ~8.3 power efficieny targets ~0.7 gas ~1.2 gas Power ~10.2 (New) ~9.5 ~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 57 determine the current costs. Relevant asset base for calculation of allowed return in 2019 is 2016 for power and 2015 for gas 2. Debt base consists of non-interest and interest bearing capital
Energy Networks Germany - Earnings components Illustrative average EBITDA1 split (2019-2020) Illustrative average EBIT1 split (2019-2020) 0% 0% ~5% Regulated return & depreciation2 ~5% ~10% Operational efficiency ~5% Other infrastructure business3 ~60% ~10% Additional network-related business4 ~50% ~15% Other regulated earnings/temporary effects Income from participations ~10% ~15% Income from participations portfolio is at-equity/at-cost consolidated 1. Adjusted for non operating effects 2. Includes return on RAB, difference between regulatory and IFRS D&A and revenues for grid expansion 3. Other infrastructure businesses 58 include e.g. water business 4. Additional network-related business includes broadband, smart meter and technical network services
Continuous improvement in operative performance increases security of supply SAIDI1,2 2014 vs. 2019 Power losses2 2014 vs. 2019 Germany Germany 48,0 -40% 4,4 -14% 3,8 29,0 2014 2019 2014 2019 Sweden Sweden 144,0 +18%3 170,0 3,9 -23% 3,0 2014 2019 2014 2019 CEE4 CEE4 336,0 -36% 9,1 -22% 7,1 214,0 2014 2019 2014 2019 1. System Average Interruption Duration Index 2. E.ON stand-alone figures 3. SAIDI increase due to weather related effects in 2019 22 minutes of disturbances (2014-2019), 59 includes: weather effects and other system disturbances 4. Calculated as arithmetic average of respective countries
RAB growth further supported by local drivers Power RAB development Local drivers € bn 3-5% CAGR • Renewable connections Germany1 17,3 • Replacement • Digitalization 2019 2022 3-5% CAGR • Storm proofing Sweden2 3,8 • Renewable connections • Demand growth 2019 2022 4-6% CAGR • New connections of B2B customers Czech 1,6 • Reliability Republic • Modernization 2019 2022 1. Assuming constant number of network concessions 2. Excluding RAB re-evaluation following the beginning of new regulatory period 60
Network charges are only a small portion of German power price Composition of average electricity price 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 23% 61
EU financing successful for major growth projects across Europe with up to ~€250 m funding grants • More than €500m investments planned ACON2,3 1.0/ACON 2.0 • Around 50% approved in EU grants • Increasing cross-border power distribution capacity and • All projects included in EU PCI1 list grid modernization through implementation of smart grids Danube InGrid3,4 • Improved security of supply and capacity in the border regions • Implementation of smart grids Smart Border Initiative3 (SBI) • Commission a cross-border smart distribution grid at low cost • Solving network bottlenecks and voltage problems intelligently 1. Project of Common Interest (EU Horizon 2020) 2. Again Connected Networks 3. Projects are part of the 4 th PCI list of EU 4. Danube Intelligent Grid 62
City Energy Solutions selected projects Key figures Project examples Countries with Högbytorp CES projects • 50% increase of renewable/recovered energy >750k customers • 99% efficiency of CHP • 659 GWh total output Hanseviertel Lüneburg ~5k installations • 8,100t CO2 savings per year under management • 90% CHP efficiency • 88% of heat demand covered by bio natural gas Werksviertel München 350 heating, cooling • 50% less CO2 & steam networks • 10% lower energy cost • High level of energy self-sufficiency Elephant & Castle London • Inhouse construction management €1.5bn revenue • 100% renewable heating supply from 2023 (biogas) 63
39 TWh of production rights for PreussenElektra already transferred - Terms challenged Nuclear power plant Krümmel1 88 TWh of production rights (before transfer) 39 TWh ~€27.8/MWh preliminary price PreussenElektra Transferred production rights 18 TWh 11 TWh 10 TWh Grohnde plant Isar II plant Brokdorf plant Production rights secured until August 2021 Production rights secured until August 2021 Production rights secured until June 2021 up to 4 TWh production rights required2 10-15 TWh production rights required2 4-6 TWh production rights required2 1. Krümmel OHG is a joint venture between E.ON and Vattenfall, each party owning 50% equity share 2. Volumes shown after transfer/purchase from Krümmel, excluding 64 minority stakes (16.7% minorities in Grohnde, 20% in Brokdorf and 25% in Isar II), as of January 2021.
Regulated earnings split share EBITDA 20201 € bn regulated • Regulated or quasi Earnings share of ~75% ~75% (Quasi-)regulated earnings strong • Network operations in countries with 6.8 – 7.0 regulatory frameworks • Customer Solutions and Energy Networks Energy Networks Customer Solutions Other2 diversified across European countries 1. Adjusted for non operating effects; assuming no further severe lockdowns in our major markets 2. Other includes Corporate Functions & Other and Non-Core 65
Past delivery on guidance EBIT1 vs. guidance Adjusted Net Income1 vs. guidance € bn € bn 3.1 3.1 3.0 3.2 0.9 1.4 1.5 1.5 2016 2017 2018 2019 2016 2017 2018 2019 reported reported Guidance range 1. Adjusted for non operating effects 66
Networks Capex breakdown 2020-2022 Germany Sweden CEE € bn € bn € bn 6.61 1.11 2.01 ~50% ~50% ~60% investment in expansion investment in expansion investment in expansion Maintenance Grid expansion Other 1. Cash effective investments; assuming no further severe lockdowns in our major markets 67
Maintaining a substantial liquidity buffer is a cornerstone of E.ON’s risk management • €2.6bn in cash & equivalents Key takeaways Large volume of • €1.1bn in short-term securities liquidity1 • €2.0bn of non-current securities • Extensive liquidity buffer • Back-up RCF undrawn and fully • Early de-risking of refinancing needs for 2020 committed Bond refinancing • €5bn bonds issued in January, April and May 2020 • Liquidity risk minimized, even in highly volatile capital markets • Continuous market access • Undrawn €3.5bn Revolving Credit Facility remains key priority- Plus further back- (RCF), fully committed by 21 banks, no up RCF available MAC-clause2 • Extended by one more year in October 2020 1. As per September 2020 2. MAC = Material Adverse Change 68
Benchmark bonds of E.ON Group as of Nov. 11, 20201 Volume in millions in Volume in millions in Issuer respective currency Coupon Maturity Issuer respective currency Coupon Maturity E.ON International Finance B.V. 570 GBP 6.500% Apr-21 E.ON SE 1,000 EUR 0.375% Sep-27 innogy Finance B.V. 1,000 EUR 6.500% Aug-21 E.ON International Finance B.V. 850 EUR 1.250% Oct-27 E.ON SE 750 EUR 0.375% 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 750 EUR 1.625% May-29 E.ON SE 500 EUR 0.000% Sep-22 E.ON International Finance B.V. 1,000 EUR 1.500% Jul-29 E.ON SE 750 EUR 0.000% Oct-22 E.ON SE 750 EUR 0.350% Feb-30 E.ON International Finance B.V. 2 750 EUR 0.750% Nov-22 E.ON International Finance B.V. 760 GBP 6.250% Jun-30 E.ON SE 1,000 EUR 0.375% Apr-23 E.ON SE 500 EUR 0.750% Dec-30 E.ON International Finance B.V. 488 GBP 5.625% Dec-23 E.ON SE 500 EUR 0.875% Aug-31 E.ON SE 750 EUR 0.000% Dec-23 E.ON SE 500 EUR 0.625% Nov-31 E.ON International Finance B.V. 800 EUR 3.000% Jan-24 E.ON International Finance B.V.3 975 GBP 6.375% Jun-32 E.ON SE 500 EUR 0.875% May-24 E.ON International Finance B.V. 600 EUR 5.750% Feb-33 E.ON SE 750 EUR 0.000% Aug-24 E.ON International Finance B.V. 600 GBP 4.750% Jan-34 innogy Finance B.V. 750 EUR 1.000% Apr-25 E.ON International Finance B.V. 900 GBP 5.875% Oct-37 E.ON SE 750 EUR 1.000% Oct-25 E.ON International Finance B.V.4 1,000 USD 6.650% Apr-38 E.ON International Finance B.V. 500 EUR 1.625% May-26 E.ON International Finance B.V. 700 GBP 6.750% Jan-39 E.ON SE 750 EUR 0.250% Oct-26 E.ON International Finance B.V. 1,000 GBP 6.125% Jul-39 1. All 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 to 69 €750m 3. The bond was increased from £850m to £975m 4. Bond issued under rule 144A/Regulation S
Funding strategy Volumes €2-4bn p.a. • Bond refinancings • Cash utilization of asset retirement obligations Tenors 3-12 years preferred • Optimize maturity profile & interest costs • Redemptions on any single day capped at €1bn Currencies EUR preferred • Predominantly Euro-based asset base • Regular & green bonds • Private placements & promissory notes Diversification Instrument variety (Schuldscheindarlehen) • Commercial paper 70
innogy bond transfer approaching 100% Currency Principle (m) Maturity %-Transfer Offer of bond transfer ✓ EUR 468 2037 99% Exchange offers JPY 20,000 2040 100% settled • Offer to innogy bondholders GBP 570 2021 100% to switch to E.ON struck on GBP 500 2022 100% highly positive investor EUR 750 2022 100% reception: >97% votes in GBP 488 2023 100% favor of the change to E.ON EUR 800 2024 100% EUR 500 2026 100% • Two bonds fell slightly short ✓ EUR 850 2027 100% Consent received and EUR 1,000 2029 100% transfer implemented of the required 50% quorum GBP 760 2030 100% but received consent in EUR 600 2033 100% adjourned meeting USD 17.4 2033 100% GBP 600 2034 100% GBP 1,000 2039 100% • Exchange offers have already EUR 100 2042 100% settled; implementation of the EUR 150 2043 100% consent solicitations in Q4 EUR EUR 1,000 750 2021 2025 100% 100% 6 Consent received in adjourned meetings 71
E.ON’s Green Bond Framework Evaluate & Management External Use of proceeds Reporting + select projects of proceeds verification • Finance and/or • Project selection based • E.ON will strive to • Allocation and impact refinance eligible green on eligibility criteria maintain a portfolio reporting after a year projects in the following • Green bond committee: matching/exceeding • Renewal on an annual eligible categories: • Sustainability outstanding green bonds basis until full allocation • Renewable energy • Energy Networks • Projects will be added on of proceeds • Energy efficiency • Customer Solutions an on-going basis • Clean transportation • Group Finance Aligned with the ICMA Green Bond Principles1 1. https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/ 72
PreussenElektra – Further ambition to ‘beat the provisions’ Solid track-record already until 2019 Nuclear Asset Retirement Obligations1 • Bundling of decommissioning activities € bn 2016 2017 2018 2019 • Procurement successes by ‘convoy approach’ • Operational progress according to plan Further optimization already planned and in execution -9 -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) 73
9M 2020 Results Financial Appendix
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 production rights + Organic RAB growth • Sweden: – • Lower allowed WACC CEE & Turkey: + Hungary/Czech Republic: strong • operational performance + • Slovakia: acquisition of VSE 1. Adjusted for non-operating effects 75
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 effects; pro forma figures 9M 2019, not audited 2. Economic Net Debt as per 30 September 2020 and 31 Dec 2019; 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 76 nominal value: the amount in the consolidated balance sheets is €2.2 bn higher
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 Net Transaction Transfer of Dividend Pensions5 Other END FY 2019 adjustment1 FY 2019 9M 20202 Investments effects4 Nord Stream1 (incl. AROs) 9M 2020 adjusted 9M 20203 into CTA 1. Adjustment of the underlying interest rate for selected leases 2. Excl. transactional effects 3. Net of divestments 4. Transaction effects include merger squeeze-out, 77 locked-box, sale of German heating customer business and of Hungarian non-regulated electricity retail business (EKER) 5. Actuarial interest rates for German pensions at 1.0% (vs. 1.3% @ FY 2019), for UK pensions at 1.6% (vs. 2.0% @ FY 2019)
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. Adjusted for non-operating effects 3. Incl. non cash-effective EBITDA items, provision 78 utilizations and payments related to non operating earnings
Divisions: Energy Networks E.ON 9M 2020 results EBIT1 Drivers €m –• –9% Covid-19-related lower volumes 2,554 Germany –• Weather-related lower volumes 2,331 CEE & Turkey 455 500 Sweden 394 275 Sweden –• Lower WACC in new regulatory period Germany 1.705 1.556 –• Higher transmission charges +• Strong operational performance 9M 2019 9M 2020 CEE –• Covid-19-related lower volumes pro forma €m Germany Sweden CEE & Turkey Total 9M 2019 9M 2019 9M 2019 9M 2019 9M 2020 % YoY 9M 2020 % YoY 9M 2020 % YoY 9M 2020 % YoY pro forma pro forma pro forma pro forma Revenue - 10,461 - - 649 - - 1,922 - - 13,032 - 1 EBITDA 2,687 2,600 -3 509 392 -23 713 746 +5 3,909 3,738 -4 EBIT1 1,705 1,556 -9 394 275 -30 455 500 +10 2,554 2,331 -9 thereof equity-method earnings - 177 - - 0 - - 124 - - 301 - OCFbIT 2,049 3,082 +50 460 394 -14 762 737 -3 3,271 4,213 +29 Investments 1,315 1,352 +3 197 241 +22 371 446 +20 1,883 2,039 +8 1. Adjusted for non-operating effects; pro forma figures 9M 2019, not audited 79
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 Total 9M 2019 9M 2019 9M 2019 9M 2019 9M 2019 9M 2020 % YoY 9M 2020 % YoY 9M 2020 % YoY 9M 2020 % YoY 9M 2020 % YoY pro forma pro forma pro forma pro forma pro forma Revenue - 15,881 - - 2,019 - - 10,076 - - 6,370 - - 34,346 - 1 EBITDA 407 392 -4 134 101 -25 72 97 +35 204 193 -5 817 783 -4 EBIT1 312 296 -5 89 45 -49 -48 -2 +96 65 39 -40 418 378 -10 thereof equity-method earnings - 3 - - 3 - - 0 - - 4 - - 10 - OCFbIT 413 373 -10 60 41 -32 233 -253 -209 148 185 +25 854 346 -59 Investments 132 152 +15 32 28 -13 162 66 -59 381 254 -33 707 500 -29 1. Adjusted for non-operating effects; pro forma figures 9M 2019, not audited 80
Non-Core business E.ON 9M 2020 results EBIT1 Drivers €m +• Higher achieved power prices -9% +• 326 Higher production volumes 298 Preussen Elektra –• Higher depreciation from purchase of production rights Preussen 256 Elektra 271 –• Transfer of minority stakes2 to RWE Generation Turkey –• One-off effect in 9M 2020 Turkey 70 27 Generation –• FX effects 9M 2019 9M 2020 pro forma PreussenElektra: Hedged Prices (€/MWh) €m PreussenElektra Generation Turkey Total as of 30 September 2020 9M 2019 9M 2019 9M 2019 9M 2020 % YoY 9M 2020 % YoY 9M 2020 % YoY pro forma pro forma pro forma Revenue - 1,028 - - - - - 1,028 - 2019 100% 33 EBITDA1 423 642 +52 70 27 -61 493 669 +36 EBIT 1 256 271 +6 70 27 -61 326 298 -9 2020 96% 45 thereof equity-method earnings - 38 - - 27 - - 65 - OCFbIT 80 394 +393 - - - 80 394 +393 2021 84% 44 Investments 148 159 +7 - - - 148 159 +7 2022 52% 45 1. Adjusted for non-operating effects; pro forma figures 9M 2019, not audited 2. NPP Emsland & Gundremmingen C 81
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-controlling interests -274 -300 -9 1 Adjusted Net Income 1,286 1,089 -15 1. Adjusted for non-operating effects; pro forma figures 9M 2019, not audited 82
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 Restructuring -179 -390 -118 Mark-to-market valuation of derivatives -74 330 +546 Impairments (net) 0 -84 - Other non-operating earnings -140 -267 -91 Income/Loss from continuing operations before income taxes 900 1.960 +118 Income taxes -354 -712 -101 Income/loss from continuing operations 546 1.248 +129 Income/loss from discontinued operations, net 1.759 -38 -102 Net income/loss 2.305 1.210 -48 Non-controlling interests -204 -208 -2 Net income/loss attributable to shareholders of E.ON SE 2.101 1.002 -52 1. Adjusted for non-operating effects 83
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 84
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 obligations -8,869 -8,828 Economic Net Debt -38,895 -42,092 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: the amount in the consolidated balance sheets is €2.2 bn higher 2. Net figure; does not include transactions 85 relating to our operating business or asset management
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 provisions -57 -4 +53 Construction period interests¹ 11 6 -5 Others 23 24 +1 Net interest result -874 -836 +38 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: 3,86%) 2. Pro forma figures 9M 2019, not audited 86
E.ON’s Proforma Financials 2019
E.ON’s Proforma Financials1 — 2019 Adjusted EBITDA1 Adjusted EBIT1 €m FY 20192 €m FY 20192 Energy Networks 5,364 Energy Networks 3,499 Germany 3,721 Germany 2,358 Sweden 692 Sweden 539 CEE & Turkey 951 CEE & Turkey 602 Customer Solutions 1,126 Customer Solutions 541 Benelux 192 Benelux 132 Germany 648 Germany 487 UK -10 UK -180 Other 296 Other 102 Corporate Functions/Other -203 Corporate Functions/Other -341 Non-Core business 617 Non-Core business 366 Total 6,904 Total 4,065 1. Adjusted for non operating effects 2. Pro forma, not audited 88
E.ON’s Proforma Financials1 — 2019 OCFbIT Investments (cash-effective) €m FY 20192 €m FY 20192 Energy Networks 4,255 Energy Networks 3,149 Germany 2,455 Germany 2,254 Sweden 718 Sweden 313 CEE & Turkey 1,082 CEE & Turkey 582 Customer Solutions 378 Customer Solutions 1,008 Benelux 84 Benelux 90 Germany 71 Germany 226 UK 128 UK 211 Other 95 Other 481 Corporate Functions/Other -657 Corporate Functions/Other 130 Non-Core business 313 Non-Core business 148 Total 4,289 Total 4,435 1. Adjusted for non operating effects 2. Pro forma, not audited 89
E.ON’s Proforma Financials1 — 2019 At-equity contribution to adjusted EBITDA/EBIT1 E.ON Financials P&L €m FY 20192 €m FY 20192 Energy Networks 349 Adjusted EBITDA1 6,904 Germany 219 Depreciation/amortization recognized in Adjusted Sweden 0 -2,839 EBIT CEE & Turkey 130 Adjusted EBIT1 4,065 Customer Solutions 22 Economic interest expense (net) -1,304 Benelux 4 Germany 6 Adjusted EBT1 2,761 UK 0 Income Taxes on Adjusted EBT -724 Other 12 % of Adjusted EBT 26% Corporate Functions/Other 70 Non-controlling interest on results of operations -464 Consolidation -1 Adjusted Net Income1 1,573 Non-Core business 125 Total 565 1. Adjusted for non operating effects 2. Pro forma, not audited 90
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