Capital Markets Story - February 2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Capital
Markets
Story
February 2021
incl. 9M 2020 financials
Our purpose Energy fuels human progress. At E.ON, we’re doing everything we can to make the future better and to enable our networks and energy solutions to connect people with one another.
E.ON business model fully focused on the energy transition
Non-core activities Core activities: Customer centric energy infrastructure
Up-stream & Power & Gas Supply
Power Generation distribution business
E.ON fully focusing on the energy transition
Employees 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 Update
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 10Adjusted 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 11Economic 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
2020-2022Guidance 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 ~€4.6bnStrategic 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
16Why invest in E.ON?
Dividend
growth
Customer centric
energy
infrastructure
Sustainability Performance
17Net 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
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- 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
20Why invest in E.ON?
Dividend
growth
Customer centric
energy
infrastructure
Sustainability Performance
21E.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-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 24
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
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 TurkeyLong-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 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
27Four 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
28Exemplary 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
29Leveraging 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
30Earnings 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
31Customer 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 SlovakiaWhy invest in E.ON?
Dividend
growth
Customer centric
energy
infrastructure
Sustainability Performance
33Performance 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
34Synergy 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)
35Renewal 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
36E.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
37Financial 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
39E.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 2020-2022Strict 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-CoreE.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-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, assuming no further severe lockdowns in our major markets
43Attractive 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
44Mid-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
45Customer 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
46Strong 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
47Significant 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 issuanceGreen 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-CoreE.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
50Rating 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 ObligationsDividend 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
52Appendix
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 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 55
(including Scope 3). Base year: 2019 pro formaE.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 56Building 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 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/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 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), 59
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
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 60Network 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%
61EU 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
62City 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)
6339 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
65Past 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
66Networks 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
67Maintaining 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
68Benchmark 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 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
• Private placements & promissory notes
Diversification
Instrument variety (Schuldscheindarlehen)
• Commercial paper
70innogy 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
71E.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/
72PreussenElektra – 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)
739M 2020 Results
Financial AppendixSegment 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
75Financial 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 higherTemporary 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 earningsDivisions: 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 79Divisions: 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 80Non-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 81Adjusted 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 82Reconciliation 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 83Cash-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 84Economic 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 86E.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
88E.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
89E.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
90You can also read
