Capital Markets Story - May 2020
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Capital Markets Story
May 2020
Table of contents 1 E.ON’s Q1 2020 Update 2 Strategic Update 3 Financial Update 4 Appendix
E.ON’s Q1 2020 Update
E.ON Q1 2020 results
Q1 2020: Solid financial and operational performance
innogy integration progressing as planned, Key Financials1
synergy delivery on track €m € bn
1,548
Virtual Annual General Meeting scheduled, 1,460
40.2
dividend proposal of €0.46/share 39.4
Accelerated network investments feed RAB
growth and better opportunities for customers
752
691
+150k customer accounts in Q1 2020
Q1 2020 financials in line with expectations,
but impacted by warm weather
Group guidance for FY 2020 confirmed, EBIT Adj. Net Income Economic Net Debt2
reflection of Covid-19 impact as of 30th April Q1 2019 pro forma Q1 2020
1. Adjusted for non operating effects, pro forma figures Q1 2019, not audited 2. Economic Net Debt as per 31 Mar 2020 and 31 Dec 2019 4
Energy Networks: ~90% of EBIT protected against
volume variation
1 Germany (schematic) 2 Mechanisms in other main markets
Unutilized allowed
Allowed revenue revenue reversed1 • Sweden: Revenue cap, full flexibility of recovery
utilization (%) • Czech Republic: Revenue cap, recovery in t+2 in
100% 100% >100% >100%
line with ‘modest’ price increases
3 Investments
t=0 t=0 t+1 t+2 t+3 t+4
expected actual
• Investment program not impacted
• Energy Networks Capex plan up for 2020,
Recovery of unutilized revenues now at ~€3.3bn (+€100m)
2020 via regulatory account
between 2022 - 2024
1. Provided for in regulatory mechanisms
5
Customer Solutions: proactive sell-back management
and focus on operational excellence in bad debt steering
1 Covid-19 related sell-back volumes as of 30th April
Share of 2020 volumes … of which sold • Total Group impact of Covid-19 related sell back
exposed to demand fluctuation back to the market
volumes for 2020 currently at high double digit
GER 16% 9% million € level.
UK 13% 9% • EBIT realization only with settlement of
NL 10% 7%
contract and thus only limited impact on Q1
earnings.
2 Key metrics for payment behavior as of 30th April
Government Change of Day of
intervention payment behavior sales
• Total Group write-offs for bad debt related to
GER
Covid-19 at a low double digit million euro level
UK
in Q1.
NL
• No major change in payment behavior observed
unchanged/low slight change/medium worsened/high across E.ON markets
6
EBIT development impacted by mild weather in Q1 2020 E.ON Q1 2020 results
EBIT1 Q1 2020 vs. Q1 2019 pro forma Key drivers
€m
Q1 2019
1,548
pro forma
Energy –• Germany: weather-related lower volumes
Energy Networks –• Sweden: lower WACC in new regulatory
-89 period
Networks
Customer
-52
Solutions
Corp. Functions Customer –• Weather impact on volumes
+34
& Other, Cons. Solutions +• UK: restructuring benefits
Non-Core +19
+/–• PreussenElektra: higher achieved prices,
Q1 2020 1,460 Non-Core higher depreciation from purchase of
production rights
1. Adjusted for non operating effects; pro forma figures Q1 2019, not audited 7
Adjusted Net Income in line with EBIT development E.ON Q1 2020 results
Q1 2020
€m
Group EBIT1 1,460
Economic
-297
interest result
Profit
1,163
before Taxes1
Income taxes -291 Tax rate at ~25%
Minorities -181
0.27 EPS (€ per share)
Adjusted
691
Net Income1
1. Adjusted for non operating effects 8
Q1 2020 Economic Net Debt reconciliation E.ON Q1 2020 results
€ bn
-8.9 Asset Retirement Obligations (ARO) -8.8
Pension provisions -6.8
-7.2 Net financial position
-23.4 -24.6
+0.3
-39.4 +1.1
-0.9 -0.7 -40.2
-0.7
END OCF Net Investments Transfer of Nord Pensions2 Other (incl. AROs) END
FY 2019 Q1 2020 Q1 20201 Stream 1 into CTA Q1 2020
1. Net of divestments 2. w/o effects from CTA funding and pensions contributions; actuarial interest rates for German pensions at 1.7% (vs. 1.3% @ FY 2019), for UK 9
pensions at 2.6% (vs. 2.0% @ FY 2019)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
11Why invest in E.ON?
Dividend
growth
Customer centric
energy
infrastructure
Sustainability Performance
12Net 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 13
(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
GoalsDecarbonization 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- 14
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
15Why invest in E.ON?
Dividend
growth
Customer centric
energy
infrastructure
Sustainability Performance
16E.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 17
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 18
4. Excludes investments in Corporate Functions & Other and Non-CoreEnergy 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 19
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
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
20
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 TurkeyLong-term RAB growth with further upside potential
E.ON Regulated Asset Base1 growth
€ bn
Power
33.2 3-5% • 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
21
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 RABGas 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
22Four 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
23Exemplary 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
24Leveraging 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
25Earnings 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
26Continuous customer growth outside the UK
B2C Customer accounts (m) Creating a future proof business
49.3 49.2
Loyalty through Scaling bundles, value-added services and
Bundling referral programs
13.0 ~380k 13.4
>150k bundle contracts in Germany and >220k
bundles in Czech Republic
Customer Digitalization of customer interactions
~510k
26.1 26.6 Experience Data driven insights and personalized offers
Market Excellence Predictive churn management
~1m Shift towards digital channels to reduce CtA2
10.2 9.2
and CtS3
2018 2019
Germany Other1 UK
1. Incl. Benelux, Poland, Sweden, Italy, Hungary, Czech Republic, Romania, Slovakia, Croatia, Slovenia, Turkey 2. Cost-to-Acquire 3. Cost-to-Serve
27Why invest in E.ON?
Dividend
growth
Customer centric
energy
infrastructure
Sustainability Performance
28Performance 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
29Synergy 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)
30Renewal of IT architecture to drive operational excellence
in Customer Solutions
Germany: Digital Attacker UK: Migration to new platform ensures higher profitability
Continuous ramp up of contracts to new Step 1 Step 2
platform (schematic) Migration of npower’s B2C and Migration of E.ON’s B2C and
SME customers onto E.ONnext SME customers onto E.ONnext
15m
10m
5m
• Combined EBIT of at least GBP100m in 2022
2020 2025 • Compared to previous plan: EBIT improvement 2023
by more than GBP50m and more than GBP100m
• Already today at competitive Cost-to-Serve level beyond 20231
• Ambition: reduction to market leading level at • Free cash flow positive from 2023 onwards2
low teens (€/customer)
• Total restructuring charges3 remain at up to GBP500m
1. Compared to business plan announced in November 2019 2. After smart meter investments 3. Majority to be shown in non operating result
31E.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
32Financial 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
34We commit to our 2020-2022 delivery plan
Dividend per share (DPS) growth up to 5% p.a.
EBIT1 growth
Group EPS1 growth
Group
7-9% CAGR 10-15% CAGR
cash conversion
Average strong
Capital structure with
rate2of 95% BBB/Baa rating
1. Adjusted for non operating effects; reflection of Covid-19 impact as of 30th April 2020 2. Excluding provision utilization for nuclear decommissioning, average for 2020-2022
35Strict 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
3-8%
Carbon heavy generation
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
36
Commodity Sales and Services 4. Includes City Energy Solutions and B2B Solutions 5. Excludes investments in Corporate Functions & Other and Non-CoreE.ON allocates ~75% of investments to Energy Networks
Investments 2020 Investments 2020-2022
€ bn € bn
~90%2 ~90%2
infrastructure infrastructure
~4.51 ~131
Energy Networks Customer Solutions Other3
1. Cash effective investments including Corporate Functions & Other and Non-Core, reflection of Covid-19 impact as of 30th April 2020 2. Based on investments in Energy
37
Networks and Customer Solutions 3. Corporate Functions & Other and Non-CoreInvestments 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, reflection of Covid-19 impact as of 30th April 2020
38Attractive Group earnings growth
EBITDA1 EBIT1 Outlook1
€ bn € bn CAGR
3-4%
7.1-7.3
6.9
0.6
1.1 4.1 3.9-4.1
EBITDA
0.5 0.4
5.4
3.6 7-9%
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; reflection of Covid-19 impact as of 30th April 2020
39Mid-term growth in Energy Networks earnings backed by
organic RAB growth
EBITDA1 EBIT1 Outlook1
€ bn € bn
5.4 5.2-5.4
1.0 3.6 3.3-3.5
0.7 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; reflection of Covid-19 impact as of 30th April 2020
40Customer Solutions earnings growth driven by digitalization and
UK turnaround
EBITDA1,2 EBIT1 Outlook1 Guidance as of
€ bn € bn May 2020
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; reflection of Covid-19 impact as of 30th April 2020 2. ~30% EBITDA share relating to decentral energy infrastructure
41Strong EPS growth of 10-15%
Adjusted Net Income1 Earnings per share1 Outlook1
€ bn € CAGR
1.7-1.9
1.6
0.63 0.65-0.73
Payout
10-15%
ratio
73%
2019 2020 2019 2020 2020-2022
pro forma pro forma
1. Adjusted for non operating effects; reflection of Covid-19 impact as of 30th April 2020
42Significant refinancing benefits over the next three years
Bond maturities as of May 20201,2
€ bn
Refinancing benefits 17.2
Volume
until 2022 of up to
% Coupon
1.8 ~€200m3
1.5
0.4% 1.3
1.2
5.7% 0.0% 1.1
5.9% 5.6% 0.9
0.8
0.6 0.6 0.0% 3.9%
0.5
6.5% 0.4%
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)
43
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 4
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, reflection of Covid-19 impact as of 30th April 2020 2. Based on investments in Energy
44
Networks and Customer Solutions 3. Corporate Functions & Other and Non-Core 4. €3.75bn issued by E.ON SE and €0.85bn issued by innogy Finance B.V., including Green
Bond issuance April and May 2020.E.ON’s approach to manage Economic Net Debt
Economic Net Debt
€ bn
Q 1 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
-6.8 long end” • Sensitivity GER pensions: -50bps +€1.6bn2
• Duration of pension obligation ~18 years
-24.6
“Manage for • Sound management of cash flow
cash” • Re-financing benefits from lower interest rates
-40.2
AROs1 Pensions Net financial position
45Debt management to bring leverage down
Leverage factor1 Selected Economic Net Debt effects 2020-20222
• 95% Cash conversion rate3
Strong BBB/Baa rating target
• Working Capital optimization program &
5.7x ARO4 reduction ~+€1bn
(ARO reduction: ~€200m already achieved 2019)
• Nord Stream 1 transfer to pension fund ~+€1bn
~5x
• Transaction effects ~-€0.5bn
Remedy proceeds, locked box settlement, merger squeeze out,
restructuring Hungary
2019 2022
• Integration costs up to ~-€1bn
pro forma
1. Economic Net Debt/EBITDA, EBITDA adjusted for non-operating effects 2. Negative effect indicates increase of Economic Net Debt and vice versa; reflection of Covid-19
46
impact as of 30th April 2020 3. Excluding provision utilization for nuclear decommissioning, average for 2020-2022 4. Asset Retirement ObligationsDividend commitment fully in line with deleveraging
EPS1 above DPS growth… …lowers payout ratio… … allowing deleveraging and
sustainable dividend growth
5.7x Strong BBB/Baa rating
target
73%
Payout ratio
~5x
2019 2020 2021 2022 2019 2022 2019 2022
pro forma pro forma pro forma
1. Adjusted for non operating effects; reflection of Covid-19 impact as of 30th April 2020
47Appendix
Guidance overview as of May 2020
Change in guidance
May 2020
€ bn 2019 pro forma3 20204 2020-20224
EBITDA1 6.897 7.1-7.3 3-4% CAGR
Energy Networks 5.359 5.2-5.4
Customer Solutions 1.124 1.0-1.2
Non-Core 0.617 0.8-1.0
Corporate Functions & Other -0.203 ~-0.3
EBIT1 4.134 3.9-4.1 7-9% CAGR
Energy Networks 3.582 3.3-3.5
Customer Solutions 0.526 0.4-0.6
Non-Core 0.366 0.3-0.5
Corporate Functions & Other -0.340 ~-0.4
ANI1 1.638 1.7-1.9 10-15% CAGR
EPS1 €0.63 €0.65-0.73 10-15% CAGR
Dividend €0.46 up to 5% p.a. up to 5% p.a.
Capex2 4.435 ~4.5 ~13
Energy Networks 3.149 ~3.3 ~9.7
Customer Solutions 1.008 ~0.8 ~2.7
Leverage 5.7x ~5x
1. Adjusted for non operating effects 2. Cash effective investments 3. Pro forma figures FY 2019, not audited 4. Reflection of Covid-19 impact as of 30th April 2020
49E.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 50
3. Including Czech Republic, Hungary, Italy, Poland, Romania, Sweden 4. PreussenElektra 5. Turkey GenerationE.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 51
(including Scope 3). Base year: 2019 pro formaE.ON’s sustainability awards, ratings and rankings
CDP Score: B
Text 1 Result: AA Text 1
Sector Average: C
Overall ESG Score: 3.2
Overall ESG Score = 81 (Leader Group)
Text 1 Text 1 Sub Sector Average Multiutilities: 2.8
Relative Position 11 out of 192
Industry Average Utilities: 2.7
E.ON is index member1, i.e. one E.ON ranks 4th in the Green Utilities
Text 1 of the 120 most advanced Text 1 Report from Energy Intelligence (EI)
companies in Europe + Eurozone Group
Rating: C+ Text 1 E.ON ranks 6th out of 30
1. Vigeo/EIRIS was acquired by Moody’s in 2019 52Building 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 53
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 capitalEnergy 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 accounted
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 54
include e.g. water business 4. Additional network-related business includes broadband, smart meter and technical network servicesContinuous 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), 55
includes: weather effects and other system disturbances 4. Calculated as arithmetic average of respective countriesRAB growth further supported by local drivers
Power RAB development Local drivers
€ bn
2-4% 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 56Network 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%
57EU 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 boarder 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
58City 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)
59Customer numbers B2B & B2C
Continued growth outside UK (in m)1 Thereof: electricity customers (in m) 1
Customer accounts +0.3%
+0.2% 40.5 40.6
51.0 51.1 11.9 12.0
5.9 5.9
2.3 2.3
14.2 14.3 10.5 10.5
9.8 9.9
9.6 9.6 FY 2019 Q1 2020
4.3 4.3 Thereof: gas customers (in m) 1
10.5 +0.0% 10.5
13.0 13.1 2.3
2.3
3.7 3.7
9.8 9.9 2.0 2.0
2.5 2.5
FY 2019 Q1 2020
FY 2019 Q1 2020
Germany UK Benelux Other Turkey
1. Including at-equity participations; Customer Solutions business of Croatia and Slovenia allocated to Energy Networks due to size 6021 TWh of production rights for PreussenElektra already
transferred - Terms challenged
Nuclear power plant Krümmel1
88 TWh of production rights (before transfer)
21 TWh ~€27.8/MWh preliminary price
PreussenElektra
Transferred
production rights 10 TWh 6 TWh 5 TWh
Grohnde plant Isar II plant Brokdorf plant
Production rights secured until Oct 2020 Production rights secured until Jan 2021 Production rights secured until Jan 2021
5-10 TWh production rights required2 15-20 TWh production rights required2 5-10 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
61
minority stakes (16.7% minorities in Grohnde, 20% in Brokdorf and 25% in Isar II)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
7.1 – 7.3
regulatory frameworks
• Customer Solutions and Energy Networks
Energy Networks Customer Solutions Other2
diversified across European countries
1. Adjusted for non operating effects; reflection of Covid-19 impact as of 30th April 2020 2. Other includes Corporate Functions & Other and Non-Core
62Past 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
63Networks 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; reflection of Covid-19 impact as of 30th April 2020
64Maintaining a substantial liquidity buffer is a cornerstone of
E.ON’s risk management
• €1.9bn in cash & equivalents Key takeaways
Large volume of
• €1.2bn in short-term securities
liquidity1
• €2.4bn of non-current securities • Well-filled liquidity buffer
• Funding needs for 2020
• Early de-risking of refinancing needs for
Bond refinancing
2020: All bond maturities covered in January already covered by bonds
already covered and credit facilities
2020
• Back-up RCF undrawn and
• Remaining funding need for squeeze-out fully committed
Squeeze-out funding
largely covered by €1.75bn undrawn
need also secured
acquisition facility (no MAC-clause1) • Liquidity risk minimized,
even in highly volatile capital
• Undrawn €3.5bn Revolving Credit Facility markets
Plus further back-up
(RCF), fully committed by 21 banks, no
RCF available
MAC-clause2
1. As per December 2019 2. MAC = Material Adverse Change
65Benchmark bonds of E.ON Group as of May 20201
Volume in millions in Volume in millions in
Issuer respective currency Coupon Maturity Issuer respective currency Coupon Maturity
innogy 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 innogy 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
innogy 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 innogy 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
innogy Finance B.V. 750 EUR 0.750% Nov-22 innogy 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
innogy 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
innogy Finance B.V. 800 EUR 3.000% Jan-24 E.ON International Finance B.V.2 975 GBP 6.375% Jun-32
E.ON SE 500 EUR 0.875% May-24 innogy Finance B.V. 600 EUR 5.750% Feb-33
E.ON SE 750 EUR 0.000% Aug-24 innogy 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.3 1,000 USD 6.650% Apr-38
innogy 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 innogy Finance B.V. 1,000 GBP 6.125% Jul-39
innogy also has a €645m, 3.23% coupon, Oct-20 maturity European Investment Bank loan outstanding 1. All bonds ≥€500m equivalent, all bonds are listed in Luxemburg, with
66
exception of the unlisted USD bond under 144A/Regulation S 2. The bond was increased from £850m to £975m 3. Bond issued under rule 144A/Regulation SFunding 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
Instrument variety
• Private placements & promissory notes
(Schuldscheindarlehen)
Diversification • Commercial paper
67innogy’s bondholders will be offered to switch to E.ON
• E.ON is and will be the only active issuer going forward Step 1 – Issuer Substitution in Q1 2020
• Rating agencies have attested that the degree of
structural subordination is not significant
innogy SE innogy Finance B.V.
+ innogy SE guarantee
• innogy’s ratings will be cancelled in 2020 and innogy’s Step 2 – Offer of Bond Transfer in 2020
group financial reporting discontinued post squeeze-out1
• E.ON offers to move all innogy bonds to E.ON level and
standards with ratings and transparent reporting
innogy Finance B.V. E.ON
• Launch expected post squeeze-out1 + innogy SE guarantee
1. Merger squeeze-out of the minority shareholders of innogy SE
68E.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
Eligible Green Projects are aligned with draft EU taxonomy
1. https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/
69PreussenElektra – 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)
70E.ON’s Q1 2020 Results
Financial AppendixSegment outlook 2020 remaining year E.ON Q1 2020 results
EBIT1 key drivers Q2 – Q4 2020
Energy Networks Customer Solutions Non-Core
Germany: Germany/UK/Netherlands: PreussenElektra:
•+ Organic RAB growth ––
• Weather impact •+ Higher hedged prices
•– Lower volumes •– Sell-back of volumes (B2B) •– Higher depreciation from purchase of
production rights
Sweden: Germany:
– Lower allowed WACC
•
•+ Positive customer development and
transaction synergy delivery
CEE & Turkey: UK:
+ Czech Republic: organic RAB growth
• •+ Operational improvements
Other:
•+ Growth in decentral energy infrastructure
and commodity sales & services Italy
1. Adjusted for non operating effects
72
Note: Reflection of Covid-19 impact as of 30th April 2020Financial highlights E.ON Q1 2020 results
Q1 2019
€m Q1 2020 % YoY
pro forma
Sales - 17.665 -
EBITDA1 2.184 2.184 -
EBIT1 1.548 1.460 -6
Adjusted Net Income 1 752 691 -8
OCFbIT - -400 -
Investments 678 918 +35
Economic Net Debt² -39.430 -40.249 -2
1. Adjusted for non operating effects; pro forma figures Q1 2019, not audited 2. Economic Net Debt as per 31 Mar
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 nominal value: 73
the amount in the consolidated balance sheets is €2.4 bn higherCash conversion in Q1 seasonally low E.ON Q1 2020 results
Q1 2020
€ bn
2.2
0.5
-3.0 -0.4 -0.2
-0.3 -0.9
-0.9 -1.8
Group Cash Change in WC OCFbIT Interest Tax payments OCF Capex FCF
EBITDA1 adjustments2 payments
1. Adjusted for non operating effects 2. Net non cash effective EBITDA items incl. provision utilizations and payments related to non operating earnings 74Divisions: Energy Networks E.ON Q1 2020 results
EBIT1 Drivers
€m
CEE & Turkey
1,150
180
–7% 1,061 Germany –• Weather-related lower volumes
143 198
Sweden 97
Germany 827 766
Sweden –• Lower WACC in new regulatory period
–• Higher transmission fees and grid losses
Q1 2019 Q1 2020
pro forma
€m Germany Sweden CEE & Turkey Total
Q1 2019 Q1 2019 Q1 2019 Q1 2019
Q1 2020 % YoY Q1 2020 % YoY Q1 2020 % YoY Q1 2020 % YoY
pro forma pro forma pro forma pro forma
Revenue - 3.746 - - 235 - - 732 - - 4.713 -
1
EBITDA 1.128 1.093 -3 184 136 -26 263 276 +5 1.575 1.505 -4
EBIT1 827 766 -7 143 97 -32 180 198 +10 1.150 1.061 -8
thereof equity-method earnings - 55 - - 0 - - 36 - - 91 -
OCFbIT - 372 - - 149 - - 206 - - 727 -
Investments 278 377 +35 56 66 +18 96 132 +37 431 575 +33
1. Adjusted for non operating effects; pro forma figures Q1 2019, not audited 75Divisions: Customer Solutions E.ON Q1 2020 results
EBIT1 Drivers
€m
All –•
–15%
Weather impact on volumes
352
300
Germany 234
175 Germany +• Growing customer numbers
Benelux
52 57
Other 85 81
UK +• Restructuring benefits
UK
Q1 2019 Q1 2020
pro forma
€m Germany Benelux UK Other Total
Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019
Q1 2020 % YoY Q1 2020 % YoY Q1 2020 % YoY Q1 2020 % YoY Q1 2020 % YoY
pro forma pro forma pro forma pro forma pro forma
Revenue - 6.151 - - 947 - - 4.574 - - 2.679 - - 14.351 -
1
EBITDA 263 205 -22 68 74 +9 24 22 -8 127 130 +2 482 431 -11
EBIT1 234 175 -25 52 57 +10 -19 -13 +32 85 81 -5 352 300 -15
thereof equity-method earnings - 2 - - 1 - - 0 - - 1 - - 4 -
OCFbIT - -927 - - -107 - - 0 - - -43 - - -1.077 -
Investments 30 43 +45 9 11 +18 49 33 -32 111 68 -39 199 155 -22
1. Adjusted for non operating effects; pro forma figures Q1 2019, not audited 76Non-Core business
E.ON Q1 2020 results
EBIT1 Drivers
€m
+12%
183
164 +• Higher achieved power prices
Preussen –• Higher depreciation from purchase of
Preussen
135 155 Elektra production rights
Elektra
–• Transfer of minority stakes2 to RWE
Generation
Turkey 29 28
Q1 2019 Q1 2020 PreussenElektra: Hedged Prices (€/MWh)
pro forma as of 31 March 2020
€m PreussenElektra Generation Turkey Total
Q1 2019 Q1 2019 Q1 2019 2019 100% 33
Q1 2020 % YoY Q1 2020 % YoY Q1 2020 % YoY
pro forma pro forma pro forma
Revenue - 386 - - 0 - - 386 - 2020 86% 46
EBITDA1 184 272 +48 29 28 -3 213 300 +41
1
EBIT 135 155 +15 29 28 -3 164 183 +12
thereof equity-method earnings - 23 - - 28 - - 51 -
2021 65% 46
OCFbIT - 79 - - 0 - - 79 -
Investments 2 156 - 0 0 - 2 156 - 2022 34% 46
1. Adjusted for non operating effects; pro forma figures Q1 2019, not audited 2. NPP Emsland & Gundremmingen C 77Adjusted Net Income E.ON Q1 2020 results
Q1 2019
€m Q1 2020 % YoY
pro forma
EBITDA1 2.184 2.184 +0
Depreciation/amortization -636 -724 -14
1
EBIT 1.548 1.460 -6
Economic interest expense (net) -294 -297 -1
1
EBT 1.254 1.163 -7
1
Income Taxes on EBT -321 -291 +9
1
% of EBT -26% -25% -
Non-controlling interests -181 -181 +0
1
Adjusted Net Income 752 691 -8
1. Adjusted for non operating effects; pro forma figures Q1 2019, not audited 78Reconciliation of EBIT to IFRS net income E.ON Q1 2020 results
€m Q1 2019 Q1 2020 % YoY
1
EBITDA 1.671 2.184 +31
Depreciation/Amortization/Impairments -496 -724 -46
1
EBIT 1.175 1.460 +24
Reclassified businesses of Renewables -204 0 +100
Interest result -261 -415 -59
Net book gains 12 5 -58
Restructuring -38 -93 -145
Mark-to-market valuation of derivatives -211 -590 -180
Impairments (net) 0 -17 -
Other non-operating earnings -9 -254 -2.722
Income/Loss from continuing operations before income taxes 464 96 -79
Income taxes -149 -197 -32
Income/loss from continuing operations 315 -101 -132
Income/loss from discontinued operations, net 172 -88 -151
Net income/loss 487 -189 -139
1. Adjusted for non operating effects 79Cash effective investments1 E.ON Q1 2020 results
Q1 2019
€m Q1 2020 % YoY
pro forma
Energy Networks 431 575 +33
Customer Solutions 199 155 -22
Corporate Functions & Other 46 33 -28
Consolidation 0 -1 -
Non-Core 2 156 -
Investments 678 918 +35
1. Pro forma figures Q1 2019, not audited 80Economic Net Debt1 E.ON Q1 2020 results €m 31 Dec 2019 31 Mar 2020 Liquid funds 3.602 3.629 Non-current securities 2.353 2.326 Financial liabilities -29.482 -30.783 Adjustment FX hedging² 167 261 Net Financial Position -23.360 -24.567 Provisions for pensions -7.201 -6.843 Asset retirement obligations -8.869 -8.839 Economic Net Debt -39.430 -40.249 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 €2.4 bn higher 2. Net figure; does not include transactions 81 relating to our operating business or asset management
Economic interest expense (net)2 E.ON Q1 2020 results
Q1 2019 Difference
€m Q1 2020
pro forma (in € m)
Interest from financial assets/liabilities -252 -265 -13
Interest cost from provisions for pensions and similar provisions -31 -23 +8
Accretion of provisions for retirement obligations and similar provisions -20 -11 +9
Construction period interests¹ 3 3 +0
Others 6 -1 -7
Net interest result -294 -297 -3
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 Q1 2019, not audited 82E.ON’s Proforma Financials 2019
E.ON’s Proforma Financials1 — 2019
Adjusted EBITDA1 Adjusted EBIT1
€m FY 20192 €m FY 20192
Energy Networks 5,359 Energy Networks 3,582
Germany 3,717 Germany 2,438
Sweden 692 Sweden 539
CEE & Turkey 950 CEE & Turkey 605
Customer Solutions 1,124 Customer Solutions 526
Benelux 192 Benelux 125
Germany 646 Germany 484
UK -10 UK -180
Other 296 Other 97
Corporate Functions/Other -203 Corporate Functions/Other -340
Non-Core business 617 Non-Core business 366
Total 6,897 Total 4,134
1. Adjusted for non operating effects 2. Pro forma
84E.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
85E.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 6,897
Germany 219
Depreciation/amortization recognized in Adjusted
Sweden 0 -2,763
EBIT
CEE & Turkey 130
Adjusted EBIT1 4,134
Customer Solutions 22
Economic interest expense (net) -1,252
Benelux 4
Germany 6 Adjusted EBT1 2,882
UK 0 Income Taxes on Adjusted EBT -760
Other 12 % of Adjusted EBT 26%
Corporate Functions/Other 70 Non-controlling interest on results of operations -484
Consolidation -1
Adjusted Net Income1 1,638
Non-Core business 125
Total 565
1. Adjusted for non operating effects 2. Pro forma
86Financial calendar & important links
Financial calendar
May 28, 2020 2020 Annual Shareholders Meeting (online)
June 2, 2020 Dividend Payment Day
August 12, 2020 Half-Year Financial Report: January – June 2020
November 11, 2020 Quarterly Statement: January – September 2020
March 24, 2021 Annual Report 2020
Important links
Presentations https://www.eon.com/en/investor-relations/presentations.html
Facts & Figures 2020 https://www.eon.com/content/.../presentations/facts-and-figures-2020.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
87E.ON Group Investor Relations Contacts
Analysts & Institutional Investors Private Shareholders
Verena Nicolaus-Kronenberg Martin Jäger Sandra Schuck
Head of Investor Relations Manager Investor Relations Manager Investor Relations
verena.nicolaus-kronenberg@eon.com martin.jaeger@eon.com sandra.schuck@eon.com
+49 152 09331400 +49 162 2754355 +49 172 2982483
Martina Burger Max Sadrina Event & Roadshow Management
Manager Investor Relations Manager Investor Relations
martina.burger@eon.com max.sadrina@eon.com Lydia Beck
+49 151 19773784 +49 152 59602298 Assistant Investor Relations
lydia.beck@eon.com
+49 152 54310267
Sebastian Gaßner Andreas Thielen
Manager Investor Relations Manager Investor Relations Vanessa Brinkmann
sebastian.gassner@eon.com andreas.thielen@eon.com Assistant Investor Relations
+49 171 3003753 +49 151 67114918 vanessa.brinkmann@eon.com
+49 152 09340725
Tobias Harburg Britta Wöhner Carmen Mombour
Manager Investor Relations Manager Investor Relations Assistant Investor Relations
tobias.harburg@eon.com britta.woehner@eon.com carmen.mombour@eon.com
+49 162 2969560 +49 152 54607527 +49 151 16310345
General Contact:
+49 201 184 2806
investorrelations@eon.com
88Disclaimer
This presentation contains information relating to E.ON Group ("E.ON") that must not be relied upon for any purpose and may not be redistributed, reproduced,
published, or passed on to any other person or used in whole or in part for any other purpose. By accessing this document you agree to abide by the limitations set out
in this document as well as any limitations set out on the webpage of E.ON SE on which this presentation has been made available.
This document is being presented solely for informational purposes. It should not be treated as giving investment advice, nor is it intended to provide the basis for any
evaluation or any securities and should not be considered as a recommendation that any person should purchase, hold or dispose of any shares or other securities.
The information contained in this presentation may comprise financial and similar information which is neither audited nor reviewed and should be considered
preliminary and subject to change.
Some of the information presented herein is based on statements by third parties. No representation or warranty, express or implied, is made as to, and no reliance
should be placed on, the fairness, accuracy, completeness or correctness of this information or any other information or opinions contained herein, for any purpose
whatsoever.
This presentation may contain forward-looking statements based on current assumptions and forecasts made by E.ON management and other information currently
available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial
situation, development or performance of the company and the estimates given here. E.ON does not intend, and does not assume any liability whatsoever, to update
these forward-looking statements or to conform them to future events or developments.
Neither E.ON nor any respective agents of E.ON undertake any obligation to provide the recipient with access to any additional information or to update this
presentation or any information or to correct any inaccuracies in any such information.
Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercial
standards. As a result, the aggregate amounts (sum totals or interim totals or differences or if numbers are put in relation) in this presentation may not correspond in all
cases to the amounts contained in the underlying (unrounded) figures appearing in the consolidated financial statements. Furthermore, in tables and charts, these
rounded figures may not add up exactly to the totals contained in the respective tables and charts.
89You can also read
