Creating the future of energy - Growth Focus

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Creating the future of energy - Growth Focus
Growth Focus Discipline

Creating the future of energy
http://www.energyfortomorrow.eu/   June 2018
Creating the future of energy - Growth Focus
Creating the future of energy
                                                                                                                                        EBIT (€ bn)


• Focus: Europe’s first energy player with exclusive downstream focus                                                         ~51


• Unique downstream footprint: RAB and customer numbers rise >60%1


                                                                                                                Enel2        Future        Engie2     Nat. Grid2 Iberdrola2
• Earnings quality: network EBIT share rises to                         ~80%1                                                 E.ON


• Strong synergies: fading nuclear earnings overcompensated by €600-
  800m synergies                                                                                                ~371, 3
                                                                                                                          Regulated Asset Base (RAB € bn)


• Attractive dividends: aiming to deliver absolute annual dividend
  growth                                                                                                        Future      Nat. Grid      Enel       Iberdrola      Engie


                                                                                                                 E.ON
• EPS accretion: from second year after closing
                                                                                                                              Customer Numbers (m)


• Solid capital structure: high commitment to strong BBB rating                                                   ~501


• Limited cash impact: acquisition of RWE‘s 76.8% in innogy via asset
  exchange; attractive offer to minority shareholders                                                            Future
                                                                                                                  E.ON
                                                                                                                                    Enel            Engie         Iberdrola

1. Future E.ON pro-forma EBIT 2017 (innogy data based on public information), 2. Bloomberg Data, 3. RABs from                                                                 2
different regulatory regimes are not directly comparable due to significant methodical differences.
Creating the future of energy - Growth Focus
Creating two focused energy companies
 Structure today
                                         ~77%
                    E.ON                innogy   RWE

 Target structure

              Future E.ON   16.67%               RWE

                                                       3
Creating the future of energy - Growth Focus
Acquisition of innogy via innovative asset exchange
   innogy                   Total equity value: ~€22bn                                                Asset exchange (limited cash impact)
                                16.67% Stake in Future E.ON
                                        (~€3.7bn)                                             1.     Acquisition of RWE‘s 76.8% stake in innogy via asset
                                                                                                     exchange
                                                                                              2.     RWE to get in exchange:
                                  E.ON & innogy Renewables                                           • 16.67% in new E.ON via 20% capital increase against
                                              &                              Renewables                 contribution in kind (authorized capital)
     76.8%
                                        Other Assets                        11x EV/EBITDA
     (RWE)                                                                                           • E.ON‘s and innogy‘s renewables businesses4
                                        (~€13.5bn)1
                                                                                                     • Additional assets: E.ON’s minority stakes in two RWE
                                                                                                        operated nuclear power plants2, innogy’s gas storage
                                  Innogy dividends (~€1.4bn)                                            business and minority participation in Kelag
                                                                                              3.     RWE receives innogy dividends for 2017 and 2018
                              Cash payment to E.ON (- €1.5bn)
                                                                                              4.     Net cash payment from RWE to E.ON of €1.5bn3
                                                                                                                          Cash element
     23.2%                                                                                    5.     Attractive cash offer to minority shareholder in innogy
                             Offer price and innogy dividend for
  (Min. share-                                                                                       with total value of €40.00 per share (offer price (€36.76)
                                  2017 and ’18 (~€5.2bn)
    holders)                                                                                         plus FY 2017 dividend of €1.60 per share, plus expected
                                                                                                     dividend of €1.64 per share for FY 2018)
1. Equity value for transfer perimeter, 2. Gundremmingen C (25% stake) and Emsland (12.5% stake), 3. Payment to balance asset valuation, 4. Excludes 20% in Rampion and   4
certain onshore capacity indirectly held by E.ON and innogy.
Creating the future of energy - Growth Focus
Transacting from a position of strength
                                E.ON today                                                                      E.ON today (’17)   Future E.ON (’17)

                                                                                                                Group EBITDA
   EBIT
  €3.1bn1
                                Upper end of guidance                         
                                                                                                                     €5bn1             ~€8bn2
    ANI
  €1.4bn1
                                         +58% YoY                             
   END
 €19.2bn1
                        Leverage target of 3.9x achieved
                         before monetization of Uniper
                                                                                                               Energy Networks
                                                                                                                   ~€23bn              ~€37bn

                                                                              
                                                                                                                    RAB1, 4             RAB2, 4
                          Payout ratio increased 2x since
 Dividend
                                start of new E.ON
                                                                                                                Customer Solutions
 Mid-term
 Growth
                                   3-4% EBIT CAGR3
                                   5-10% EPS CAGR3
                                                                                           E.ON
                                                                                         standalone                  >31m              ~50m
     Regulated          Non-regulated
                                                                                                                   Customers1        Customers2
1. E.ON standalone 2017 reported, 2. Future E.ON pro-forma 2017 (innogy data based on public information),
3. 2018-2020 based on existing portfolio (E.ON standalone), 4. RABs from different regulatory regimes are not                                          5
directly comparable due to significant methodical differences.
Creating the future of energy - Growth Focus
Unique downstream position across Europe
 Excludes npower UK customers subject
        to transaction with SSE
                                                                           Energy Networks (RAB)
                                                               Sweden1
                             UK                                            Customer Solutions (number of customers)
                                                         ~€4bn      ~1m
                      -            ~7m1

                          NL/BE
                                                                                  CEE3
                      -            ~4m2
                                                                           ~€11bn4      ~13m
                                            Germany3
                                                                                 Turkey1
                                         ~€20bn   ~14m
                                                                           ~€1bn         ~9m
1. E.ON 2017 reported, 2. innogy
2017 reported, 3. Future E.ON pro-
forma 2017 (innogy data based on
public information), 4. RABs from                        Southern Europe
different regulatory regimes are not
directly comparable due to significant                     -        ~1m3                                      6
methodical differences.
Creating the future of energy - Growth Focus
Focus, scale and efficiency pre-requisite for success

                                                      Mega trends accelerate and reinforce each other
                 Empowered
                                                   • Future E.ON’s unique downstream positioning fully
                  customers
                                                     captures benefits of energy mega trends

                                                             Focus, scale and efficiency needed
 Digitization                                                      in New Energy World
                New culture &    Electrification
                 capabilities                      • Creating markets for customers through our
                                                     products, services, technologies
                                                   • “Go to” partner for politicians and regulators in
                                                     designing the energy transition
                     De-
                                                   • Combining innovation power to enhance
                 carbonization
                                                     development of state-of-the-art products
                                                   • Synergies improve cost position and roll-out speed
                                                   • Innovative services levered on significantly higher
                                                     customer number
                                                                                                           7
Creating the future of energy - Growth Focus
Acceleration of strategy execution
                                                                                    Unique strategic position

                                                                                    • Focus on high-performance
                                                                                      regulated networks and
                                                                                      state-of-the-art customer
                                                                                      solutions
                                           Position of strength
                                                                                    • Reduction of portfolio
                                                                                      complexity
                                                                                    • Enhanced earnings quality:
                                                                                      ~80% of EBIT1 is regulated
                                                                                    • Aiming to deliver absolute
       Transition year                  
                                        • Robust portfolio
                                                                                      annual dividend growth
         Spin-off Uniper                
                                        • Strong financial & operational delivery
   & reset of E.ON                     
                                        • Balance sheet headroom

              2016                                                 2018               2020 and beyond
1. Future E.ON pro-forma 2017 (innogy data based on public information).                                           8
Creating the future of energy - Growth Focus
Value creation for shareholders

 Realization of valuation premium                                            Potential for
12
                                                                              premium
11                                                                            valuation
   Renewables                     innogy acquisition at ~10x
1011x EV/EBITDA                          EV/EBITDA

 9

 8
                                                Instant          Platform    Shareholder
 7                                          redeployment of       for high      value
                                                capital          Synergies
 6                                                                             creation
                                                               (€600-800m)
 5

 4

 3
          Renewables1

1. Enterprise value (schematic)                                                              9
Creating the future of energy - Growth Focus
Integration of innogy provides for strong synergy potential
                           Estimated synergies (€ m)2                                                                  Synergy focus1, 2
                                                                                                                                      Corporate Functions & IT
                                                                             €600-800m                                                Energy Sales & Customer
                                                                                                                                      Solutions
                                                                                ~100%                                                 Energy Networks

                                                         ~55%

                                ~25%                                                                     • Strong synergy potential of €600-800m
                                                                                                         • 10-15% of controllable costs
         ~5%
                                                                                                         • ~5000 FTEs affected (~7% of employee
                                                                                                           base)
        2019                     2020                    2021                     2022

1. Synergy split (€ million), 2. Future E.ON pro-forma 2017 (innogy data based on public information).                                                      10
Attractive earnings & dividend profile secured long-term
                                                                                   EBIT development3

                                                                                                      Synergies to over-compensate
    Share of regulated network earnings (EBIT)
                                                                               6                         fading nuclear earnings
     E.ON today                              Future E.ON
                                                                               5

                                                                               4
         ~65%1
                                                                               3

                                                  ~80%2                        2

                                                                               1

                                                                               0
                                                                                          2018                2019           2020            2021   2022
      Regulated         Non-regulated
                                                                                           E.ON stand-alone                  Enlarged E.ON
1. E.ON 2017 reported, 2. Future E.ON pro-forma 2017 (innogy data based on public information), 3. Schematic illustration.                                 11
Future E.ON‘s key financials

     EBITDA                                  ~€8bn1                                                                                           Energy Networks
                                                                                                         ~80%                                 Customer Solutions
                                                                                                       regulated2                             Non-Core

        EBIT                                 ~€5bn1

        EPS                                           EPS accretion from second year after completion

                                                    Aiming to deliver absolute annual dividend growth
    Dividend
                                                            (fixed dividend for 2018: €0.433)

1. Future E.ON pro-forma 2017 (innogy data based on public information), 2. Future E.ON pro-forma EBIT 2017 (innogy data based on public information),             12
pie chart does not account for corporate functions & others, 3. Fixed for FY2018 (paid in 2019).
Pro forma economic net debt

    E.ON today1 (€ bn)                                                              Future E.ON2, 3 (€ bn)

                                                                                                                      Includes:
                                                                                                  ~35
                                                                                                                      • Acquisition of 23.2% minority shares
                                                                                                                      • €1.5bn cash payment from RWE

                                               ~€2.8bn debt                                                                         Further deleveraging measures
               ~19.2                                                                                                                  to be realized in ‘18 (€
                                                                                                                                                            ( bn))
                                            transferred to RWE
                ~5.0
                                                                                                                               +   Monetization of Uniper shares
                ~3.6                     • Nuclear provisions: ~€0.9bn                                                                                             ~5
                                         • AROs (Renewables): ~€0.9bn                                                          +   Transfer of NS14 into CTA
                                         • Tax equity liabilities
               ~10.6
                                           (Renewables): ~€0.6bn
                                         • Pension provisions
           Economic Net                    (Renewables): ~€0.4bn                            Economic Net
            Debt 2017                                                                        Debt 2017

      Net financial position        Provisions for pensions         Asset-retirement obligations

1. E.ON 2017 reported, 2. Future E.ON pro-forma 2017 (innogy data based on public information), 3. E.ON will address structural subordination post closing,             13
4. Nord Stream I stake.
Investor agreement with RWE ensures equal treatment of
shareholders

      Preamble          • RWE to act purely as financial investor

      Corporate
                        • Right to nominate one Supervisory Board member
     Governance

     Shareholder        • Not allowed to increase stake above 16.67%
 structure and rights   • Not allowed to sell to an E.ON competitor

                                                                           14
Clear path to obtain full control, irrespective of PTO acceptance rate

               2018                                             2019                                                      2020                           2021

                                                   1st Closing                                                 2nd Closing
         Voluntary public             • E.ON becomes ≥76.8%                       • Transfer of E.ON and innogy RES Assets
       takeover offer (PTO)             shareholder in innogy                     • Transfer of Kelag participation and gas storage assets of
       (late April – early July)      • RWE becomes 16.67%                          innogy
                                        shareholder in E.ON (20%
        Extended offer period           capital increase)
             (mid July)               • €1.5bn cash payment to E.ON1
                                      • Transfer of other assets2

                                                           Antitrust approvals
                                                                                                     Full legal integration
                                                                                                                         Integration & synergies

1. Payment to balance asset valuation, 2. Transfers of E.ON minority shares in the two RWE-operated nuclear power plants Gundremmingen (25% stake) and          15
Emsland (12.5% stake) to RWE.
Transaction Update 1 – Official offer period has started
        Highly attractive offer for innogy minority shareholders                                Alternatives for innogy minority shareholders that do not tender
                                                                                                              • Compensation payment based on IDW S11
     • Total offer value €38.40 (= €40.00 pre 2017                                                              valuation in case of DPLTA2 or squeeze-out or
       dividend of €1.60 paid in April 2018)                                                                  • “Guaranteed dividend” in case of DPLTA or
     • 28% premium to innogy’s last share price                                                               • Shares in merged NewCo
       unaffected by general takeover speculations
                                                                                                         Compensation payment could be lower than offer value
       (22 February 2018)
                                                                                                          In DPLTA case synergy value will not be considered
     • 23% premium to average broker target price before
                                                                                                         Guaranteed dividend could be structured akin to a bond
       announcement
                                                                                                         with yield reflecting current low interest rate environment
     • Offer value reflects value of innogy stand-alone and
                                                                                                         Shares in NewCo  No cash compensation at all
       part of the potential synergies resulting from full
       integration into E.ON                                                                                        E.ON will have control post closing,
                                                                                                                   irrespective of offer acceptance rate

                                                    Incentive structure for high acceptance rate in place

1. Valuation standard of the Institute of Public Auditors in Germany, 2. Domination and profit and loss transfer agreement                                         16
Transaction Update 2 – Merger control proceedings
 Simplified overview of process steps of EU merger control proceedings
 (possible (partial) referrals to national authorities not taken into account1)

                                                         Presentation of potential concerns
                                                                                                                 Not before mid-2019
                ≈ May 2018                                  regarding market segments                              Expected EU Commission
                                                                                                                      clearance decision

                                                             Phase I                                       Phase II
   Preparations                 Pre-notification
                                                        (25 working days)                       (90 working days + extensions)

• Drafting                • Discussing draft          • Assessing                      • Analyzing market segments in detail
  notification              notification,               notification
  documents                 responding to                                              • Negotiating potential conditions
                                                      • Obtaining additional
                            information requests
                                                        information requests
                          • Finalizing notification

 1. Federal Cartel Office Germany, CMA, CEE                                                                                                 17
Investment highlights

                                                          Starting from position of strength:
                                                            Creating the future of energy

  Growth                                                Aiming to deliver absolute annual dividend growth

  Focus                                      Unique downstream positioning with ~80% regulated earnings1

                                                Renewables value crystallization and €600-800m synergies
  Discipline                                            High commitment to strong BBB rating

1. Future E.ON pro-forma 2017 (innogy data based on public information).                                    18
Growth Focus Discipline

         Q1 2018 Results
                 E.ON standalone

                  May 8th, 2018
E.ON standalone

  Strong Q1 2018

    Highlights                                                       Key Financials1
                                                                     €m
                                                                                    1,715
          Strong EBIT development: +24% Q1 2018 vs.
          low base in Q1 2017                                             1,517

                                                                                                              1,284
          Adj. Net Income increased +38% YoY
                                                                                                      1,038
          FY 2018 guidance confirmed:
          EBIT €2.8-3.0 bn, Adj. Net Income €1.3-1.5 bn                                                                         727

                                                                                                                       525
          Voluntary PTO2 to innogy minority shareholders
          formally launched

                                                                             EBITDA                       EBIT        Adj. Net Income

                                                                          Q1 2017           Q1 2018
  1. Adjusted for non operating effects, 2. Public Takeover Offer.                                                                      20
E.ON standalone

  Operational update

                          Energy Networks Germany                                                               Customer Solutions Germany/UK
           • OLG1 court decision on allowed RoE2                                                   • Customer numbers continue to grow
              • Ruling: 6.91% set by BNetzA too low                                                    • More than 50,000 additional household customers
              • Independent expert view: 7.7% adequate                                                   in Q1
              • BNetzA: appeal at last resort BGH3                                                     • Following gain of more than 100,000 in Q4 2017
                                                                                                         and stabilization in Q2 & Q3 2017
           • General efficiency factor gas                                                             • Managed to reduce churn rate below market
              • Reduction from 1.5% to 0.49%                                                             average in UK
              • However, E.ON filed legal complaint                                                    • Strategy of innovative tariff offerings and focused
              • Calculation method too unreliable                                                        sales channels is bearing fruits

           • General efficiency factor power                                                       • UK political environment disappointing
              • Decision by BNetzA in Q3 at the earliest                                               • Price cap still pending, many uncertainties remain

  1. Higher Regional Court of Düsseldorf (Oberlandesgericht – OLG), 2. Return on Equity, 3. German Federal Court of Justice (Bundesgerichtshof – BGH).         21
E.ON standalone

  EBIT 24% above prior year

    EBIT1 Q1 2018 vs. Q1 2017                                                  Key Q1 Effects
    €m
                                                                                  Energy     + Sweden: power tariff increase
         Q1 2017                                 1,038                           Networks    + Turkey: regulatory improvements
                                                                                             – Germany: reversal of regulatory effects,
         Energy                                                                                concession loss Hamburg
                                          -36
       Networks
                                                                                 Customer    + Germany: price increases as per Q2 2017,
       Customer                                                                  Solutions     lower gas procurement costs Q1 2018
                                                73
        Solutions                                                                            – UK: competitive dynamics, restructuring costs
                                                                                               overcomp. price increases as per Q2 2017
     Renewables                                 11                      +246
                                                                                Renewables
   Corp. Functions
                                                                                             + Onshore & Offshore: capacity additions
          & Other,                                   65                                        (mainly Bruenning’s Breeze & Radford’s Run)
     Consolidation                                                                           – Onshore: subsidy expiries

        Non-core                                          133                    Non-Core    +   PreussenElektra: increased volumes due to
                                                                                                 plant outages in Q1 2017 (mainly Brokdorf),
         Q1 2018                                                1,284                            positive one-off effects
                                                                                             +   Turkey: omission of book loss from asset sale

  1. Adjusted for non operating effects                                                                                                          22
E.ON standalone

  Adj. Net Income 38% above prior year

    Q1 2018
    €m

   Group EBIT1                                                                          1,284

    Interest on                                                                                     ~€ 20m improvement yoy mainly due to refinancing
    fin. assets/                                                                -156                benefits, partly compensated by lower interest income
      liabilities2                                                                                  from asset portfolio
  Other interest
                                                                        -21
       expenses

   Profit before                                                               1,107
          Taxes1

  Income Taxes                                                     -277                             Tax rate of 25% (stable yoy)

      Minorities                                   -103

      Adjusted
                                                           727
   Net Income1
                                                                          €0.34 EPS (€ per share)

  1. Adjusted for non operating effects, 2. Without interest accretion of nuclear provisions .                                                              23
E.ON standalone

  END impacted by seasonally low operating cash flow

    END1 Q1 2018 vs. FY 2017
   € bn
                                                                                       -0.4

          -10.6
                                                                                                                                                               -10.7
                                                                                                                                                               -2.9
                                                                                           Liquidation of pension
          -3.6
                                                                                           scheme results in reduction
                                                                                           of pension provisions –
                                                                                           limited effect on END

          -5.0               0.1                                                                                                                               -6.0

          -19.2                                 -0.7                0.2                                    0.7                -0.7
                                                                                                                                                   0.1
                                                                                       -0.1                                                                    -19.7

    END FY 2017             OCF             Investments        Divestments             AROs             Pensions            Other                Other      END Q1 2018
                                                                                                                        (CTA2 Funding)        (Remainder)
       AROs          Pension provisions         Net financial position

  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,                 24
  2. Contractual Trust Arrangement.
E.ON standalone

  Outlook 2018 confirmed
                                          Outlook 2018             Effects for the remainder of 2018
                                                                      Energy       + Sweden: power tariff increase
                                                                     Networks      – Germany: reversal of regulatory
                                                     €2.8-3.0 bn                     effects, new regulatory period for gas,
                                                                                     concession loss Hamburg
                                                                     Customer      + Germany: non-reoccurrence of a
                                          EBIT1                      Solutions       negative one-off effect in 2017
                                                                                   – Germany & UK: restructuring costs
                                                                                   – UK: competitive dynamics
                                                                    Renewables     + Offshore & Onshore: capacity additions
                                                                                     (Bruenning’s Breeze, Radford’s Run,
                                                                                     Rampion)
                                                     €1.3-1.5 bn                   – Onshore: subsidy expiries
                                          Adj. Net
                                                                    Non-Core
                                          Income1                                +/–
                                                                                  + PreussenElektra: non-reoccurrence of
                                                                                     one-off effects from 2017
                                                                                   – PreussenElektra: lower hedged prices

  1. Adjusted for non operating effects                                                                                        25
Appendix
Growth Focus Discipline

             E.ON Group
                 E.ON standalone
E.ON standalone

  Delivering step by step – Strategy & Operations
    Portfolio reset completed          New culture & capabilities       Operational excellence

    • €3.8bn Uniper disposal:          • ~€1bn total contract value     • + ~500MW onshore wind
      decision to accept Fortum’s        in B2B new solutions             in US in 2017
      offer                              (2017)
                                                                        • + ~130k customer in
    • De-risking: transfer of          • ~200% sales growth in            Q4 ’171 – turn-around
      nuclear storage liabilities to     PV/battery: fastest              achieved
      government                         growing solar company in
                                         Germany                        • €400m delivery of Phoenix
    • €0.2bn proceeds:                                                    performance program
      successful IPO of Enerjisa’s     • Innovation & digitization:
      downstream business                successful launch of new       • ~€0.6bn nuclear
                                         products                         decommissioning savings
                                                                          secured
                                       • E-mobility: gaining traction

  1. Germany and UK                                                                                   28
E.ON standalone

  Each pillar with focused and disciplined growth

           Customer Solutions                     Energy Networks                           Renewables
   Total Customer #                      E.ON power RAB                      E.ON operated capacity

                  +~2m                                 +~€2-3bn                              +~2GW

                                                                  ~€21-
                            ~24m                                                                      ~8GW
                                                                  22bn
         ~22m                                 ~€19bn                                ~6GW

          2017              2025               2017               2020               2017                2020

   • Energy sales: reinvent with         • Grow & sustain RAB                • Onshore: grow at scale
     profitable customer growth          • Develop transformative platform   • Offshore: leverage existing
   • New solutions: rapidly scale up     • Drive adjacent businesses           options
   • Heat: leverage existing positions

                                                                                                                29
E.ON standalone

  Attractive stand-alone profile

                    EBIT growth                       EPS growth             Dividend growth
                                                                                                  Aiming to deliver
                                                                                                  absolute annual
                                                                                                  dividend growth
                      Group CAGR:                         +5-10%                  +40%
                         +3-4%                             CAGR
                                         ~8GW
            5.3GW
             €2.8 –                             €0.60 –
             3.0bn                               0.70
             2017                        2020                             €0.30          €0.431
                        Core CAGR:
                          +5-6%

            2018                         2020   2018               2020   2017           2018

  1. Fixed for FY 2018 (paid in 2019).                                                                         30
E.ON standalone

  E.ON‘s guiding principles

                              Absolute annual dividend           Sustainable & resilient
     Drive value creation
                                      growth                          EPS growth

                                                   Operational                Capital
    Customer-led            Digitization
                                                   excellence                discipline

                                                                                           31
E.ON standalone

  Strong delivery of financial targets
                                                                                                    Deleveraging achieved:
                   EBIT1 vs. guidance                       Adj. Net income1 vs. guidance
                                                                                                 significant reduction of END

                  €2.7-                       €2.8-                                    €1.2-                ~€7bn
   €3.1bn                            €3.1bn                                   €1.4bn
                  €3.1bn                      €3.1bn                                   €1.45bn    €26.3bn

                                                                €0.6-
                                                       €0.9bn                                                       €19.2bn
                                                                €1.0bn

                                                                                                    5.3x
                                                                                                                     3.9x

           2016                            2017            2016                    2017            2016              2017

       Guidance range

  1. Adjusted for non operating effects.                                                                                        32
E.ON standalone

  Deleveraging creates balance sheet headroom
  Economic net debt
  € bn                                   Hybrid               Scrip dividend
           26.3                         cancelled               cancelled
                               21.5
                                                    19.2                           19.2

            ~5.3x
           EBITDA               ~4.4x                                                                                       ~4.0x
                                                     ~3.9x                          ~3.9x
                               EBITDA                                                                                      EBITDA
                                                    EBITDA                         EBITDA
                                                                                                  ~3.0x
                                                                                                 EBITDA

           FY 16               Q2 17                FY 17                          FY 17          Post         headroom   Mid-term
                                                                                              deleveraging                 target

   Achieved (€ bn)                                                             To be finalized (€ bn)

   +     Nuclear fuel tax                                    ~2.9              +   Monetization of Uniper shares
   +     Accelerated Book Build                              ~1.4              +   Transfer of NS11 into CTA
                                                                                                                          ~5
   +     Nuc. decommissioning cost savings                   ~0.6              +   Nuc. decommissioning cost savings
   +     Additional measures                                 ~0.6                  and additional measures

  1. Nord Stream 1 stake.                                                                                                            33
E.ON standalone

  Disciplined capex drives EBIT growth

                   Old plan ~€8bn net capex1                           New plan ~€9.5bn net capex1

                                                  ~20%

            2017                 2018     2019                  2018                2019                   2020

                 EBIT flat within range (€ bn)                  EBIT driven up by additional capex (€ bn)

                                                                                               Core EBIT
                                                                                              CAGR ~5-6%
  3.1

                                                                            Group EBIT CAGR
                                                                                ~3-4%

  2.8

             2018                2019      2020          2018                       2019                          2020
                                                                                                                         34
  1. Capex net of divestments.
E.ON standalone

  Capex split 2018-2020

                    Capex1 2018                                          Capex1 2018-2020
                                                                                                         Increase in capex drives the
                                                                                            Growth       5-6% EBIT growth target of
                                                                                                         the core business
   ~€ 3.5bn                                                 ~€ 9.5bn
                                         1.0
                                                                         26%         25%                     Segments have to
              1.0                                                                                            compete for capital and
                                                                                                Focus        against other uses of
                                                                                                             funds

                                                                                                         Strict adherence to return
                                 1.5                                           49%          Discipline   targets (ROCE 8-10%)

       Energy Networks                 Renewables   Customer Solutions

  1. Capex net of divestments.                                                                                                          35
E.ON standalone

  Sustainable performance - Phoenix & beyond
  Phoenix measures fully implemented                   Fokus (Ger) & SWAT (UK) next wave
                                                                                          Gross savings to
                                                          Restructuring costs (upfront)
                         ~270m             400m                                            offset margin
                                                          EBIT contribution                  pressure

                                                                                                             ~€120m savings
       ~130m
                                                                                                             ~£100m savings

        2017             2018              Total
                                                         2018       2019         2020      beyond
                                                                                            2020

  Performance culture to be sustainably embedded        Already embarked on the next efficiency projects
  across all functions
  • Focus on central overhead and support functions     • Focus on business operations
  • Digitalization to improve processes and customer    • Fokus (CS Ger) & Swat (CS UK) target to fully
    experiences                                           off-set margin pressure
                                                        • Make business model future proof

                                                                                                                          36
E.ON standalone

  Group guidance FY 2018
                           EBIT 2017                             EBIT1 (€ bn)

                            €3.1bn                                              Includes ~€100m restructuring costs
                                                           3.0                  in Customer Solutions (UK, Germany)

                                           2018 Guidance
  2017 Actuals

                                                           2.8

                   Adj. Net Income 2017                    Adj. Net Income (€ bn)

                            €1.4bn
                                                           1.5
                                                           1.3

                                                           Guidance range

  1. Adjusted for non operating effects.                                                                              37
E.ON standalone

  Delivering step by step – Attractive dividends

                                    Absolute dividend growth              2018: Fixed Dividend

                                                                                           Aiming to deliver absolute
                                                                                            annual dividend growth

                                                                                 €0.431

                                                                €0.30
                         €0.21

                       FY 2016                                 FY 2017          FY 2018
                       Dividend                                Dividend         Dividend

  1. Fixed for FY2018 (paid in 2019).                                                                            38
E.ON standalone

                             E.ON FOCUS – medium-term framework
                                                  Our basis for steering the company

                                                                   Capital Structure
                                                                        Strong BBB/Baa

                    Return
                    ROCE1
                                                                                                                                 Dividend
                   8 – 10 %                              EBIT3                                 EPS3,4                                 Payout
                                                                                                                              Fixed dividend: €0.435
                                                           Group                                  Group                            Absolute
                                                           + 3-4%                                + 5-10%
                     Cash                                                                                                      dividend growth
          Cash conversion rate2
                 ≥ 80 %

                                                              Executive Compensation
                        Closely linked to EPS target achievement and relative TSR4 (in addition: share ownership obligations)

          1. Based on EBIT (= pre-tax), 2. OCFbIT divided by EBITDA, 3. Adjusted for non-operating effects, FY 2018 guidance range as basis for medium-term
          outlook 2018-2020, 4. Total Shareholder Return, 5. Fixed for FY2018 (paid in 2019).
                                                                                                                                                              39
E.ON standalone

  Investment highlights

                  From deleveraging to focused and disciplined growth

                                Deliver sustainable EPS growth and
    Growth                   aiming for absolute annual dividend growth

    Focus                 Management team with strong shareholder focus

    Discipline          Strict capital discipline and high-performance culture

                                                                                 40
Growth Focus Discipline

        Energy Networks
                 E.ON standalone
E.ON standalone

  Energy Networks - The heart of E.ON
       Regulated asset base 20171                                                                                                     Grid length (‘000 km) 1

    Sweden                         Germany                                                                                             ∑ Grid length: 976
    €4.0bn                         €10.7bn                                                                                             ∑ Grid length: 107
                                                                                                                                                                      490
                                                                                                                         349
                  ~€23.1bn2                                                                                                                   137
                                                                                                                                 60                    2
    CEE &                                                                                                                                                                   45
    Turkey                                                                                                                Germany               Sweden            CEE & Turkey
    €8.5bn3
                 EBIT4 2017                                                                                                              Market share (%)
    Sweden                             ~75% of
    €0.5bn                              group
                                         core                                                                                                         71
                   ~€1.9bn                                                                                                                                            32
    CEE &                                                                                                                 19                   25                           27
                                                                                                                                 12
    Turkey                          Germany                      Power and gas business
                                    €1.1bn                                                                                Germany               Sweden           CEE & Turkey5
    €0.4bn                                                       Power business only
                                                                                                                          Power         Gas

  1. 100% view for Slovakia and Turkey, 2. Differences may occur due to rounding, 3. In Hungary the RAB has been increased in 2017 by €2.8bn due to a system change              42
  towards replacement costs. It was €1.5bn before, 4. Adjusted for non operating effects, 5. Arithmetic average.
E.ON standalone

  Energy Networks - Higher capex leads to power RAB growth

                Germany                       Sweden                  Czech Republic
                                 Power RAB                     Power RAB
    Power RAB
                                                                            +12-16%
                 +6-10%                       +11-15%

         ~€8bn                       ~€3.8bn                        ~€1.4bn

          2017            2020         2017             2020         2017             2020

                                                                                             43
E.ON standalone

  Multi-decade RAB growth engine
  Energy Networks capex1
                                                              €1.7 – 1.8bn

                                                                                             Cautious planning

                                             +€300m –                        • Main driver is additional replacement
                                              €400m                            investments
                                                                             • Conservative assumptions on Renewables
                                                                               and E-mobility roll-out

  €1.4bn              €1.4bn
                                                                                 Potential upsides to “new normal”-level
                                                                             •   Acceleration of Renewables build-out
                                                                             •   Smart meter
                                      Disciplined & gradual
                                                                             •   E-mobility
                                            ramp-up                          •   Electrical heating
                                                                             •   Digital layer & fully digital equipment
   2016                2017                                   Beyond 2020
                                                              “New normal”

  1. Excluding Slovakia and Turkey.                                                                                        44
E.ON standalone

  Major transformation in Energy Networks
                 Future energy network system will need to combine                                                   Energy Network player
                          different layers of infrastructure                              From                               To
                        Data center                                                       Energy network operator            Holistic system provider
                                               EMS                Platforms
      Digital layer

                           VPP                    Smart Home
                                                                                Network
                                                                                control
                                                                                center

                                                                   Local grid
                                         Asset control             control
                                         systems

                                  Wifi                            Antenna
   cation layer
   Communi-

                                                   Smart Meter
                                                                                           Single layer
                                                                                                                                    Infrastructure ecosystem
                                                                                           infrastructure (energy)

                                 Cloud                           Block chain
                                                                                                                                    Decentral, connected
                                                                                           Physical linear network
                                                                                                                                    multi-layer infrastructure
   Physical
    layer

                                                                                                                                    More (semi-) autonomous
                                                                                           Centralized system
                                                                                                                                    local energy systems

                                                                                                                                                                 45
E.ON standalone

  Turkey with extraordinary high RAB growth

           Downstream Business                      Market & Regulation                      RAB development

   Established in 3 high-growth regions   Constructive regulatory environment:
                                                                                 in bn TL, nominal
   Leading electricity network operator:   − Allowed  WACC   for 2016-2020
                                              regulatory period has been                             >2x
    − 10.5 m connections
                                              increased to 13.6% from 11.9%
    − 220,000 km network length                                                                5.3
                                              (pre-tax, real)
       (20% of market)                                                               3.8
                                            − Incentives to outperform capex,
  Regions                                     opex, and theft & loss allowances

                                            High network investment due to:
     Istanbul    Ankara
                                             − Strong power demand growth of         2016     2017             2020
                                               >4% p.a.
                                                                                       Target to more than double
                                             − Need for significant network                2016 RAB by 2020
                    Adana
                                               modernization

                             Strongly growing market with highly attractive returns
                                                                                                                      46
E.ON standalone

  Operational excellence – digitization in practice

                             Digital workforce                                       Asset replacement decisions

            Introduce digital application used by every field worker
                                                                          Conventional approach           Predictive maintenance
           comprising all functionalities necessary in the daily work
  Tool

                                                                                                          Data driven decisions to
                                                                        Expert judgement and local
                                                                                                           prioritize replacement
                                                                                experience
                                                                                                                  activities

                            Providing a smooth user experience                         Transparent and effective capex allocation
  Impact

                                                                                      Low double digit million € added value p.a.
                                 6-12 % productivity gains
                                                                                             potential after full roll-out

                                                                                                                                     47
E.ON standalone

  Aspiration to develop the platform for energy transition

           Further decentralization and
           fragmentation lead to a need for
           local rebalancing                                            P2P                Regional
                                                                        Trading            Energy
                                                              Flex-               Local    System
                                                              Markets             Energy
                                                                                  System

           Increasing system responsibility                     Transformative Platform
           assumed by regional or local network
           operator

                  Energy transition is and will be happening essentially at the DSO-level

                                                                                                      48
E.ON standalone

  Opportunities in adjacent businesses - Broadband
    A               Growing from existing assets                                       B         Entering Fiber-to-the-Home (FttH) market
                                                                 E.ON's existing fiber-optic infrastructure
                                                                 E.ON's new fiber-optic infrastructure
                                                                                                                                    Fiber-optic
                                                                                                                                    cables
                                                                                                                                    in every street
        Telco X's                                                                                                                   and to every
        backbone                                                                                                                    household

                                                       Mobile cell tower            Business
                                                                                    building

                                         Point of Presence                                                                               Local
                       Enterprise        (Switch between                                Network                                          transformer
                       customer's data   backbone and                                   operations                                       station
                       center            access network)                                center

                    Extension of existing business                                                New business concept in development

                                                                                                                                                       49
E.ON standalone

  EBIT outlook – Stability despite two major regulatory reviews

                                        Lower allowed returns          • Lower allowed returns reflect lower
                                                                         bond yields
                                                                       • Benefits from maturing legacy
                                                                         bonds to be attributed to Energy
                                            Higher RAB                   Networks driving EPS growth

                               €1.9bn
    Positive one-off
    German pension cost pass
    through
                                                                                   EPS growth

                                                                                  +5-10% p.a.

                                                                           €0.60 –
                                                                            0.70

                                                                            2018                2020
                               2017     2018       2019         2020
                                                                                                               50
Growth Focus Discipline

      Customer Solutions
                 E.ON standalone
E.ON standalone

  Energy sales is the anchor of customer solutions
           Customer focused portfolio                                  E.ON’s market positions                                Energy Sales is the anchor business
                                                                                                                       EBIT3 2017 €526m                     Energy Sales EBIT4
                 B2B
                                                                                                                             Heat &
                                                                                                                               New                                     B2B
                                                                                                                             Solutions                                ~25%
                       Customer B2C
                                                                                                                                         Energy                              B2C
                                                                                     Top 3
                                                                                                                                                                             ~75%
                                                                                                                                          Sales
                 B2M

                                                                                        Top 3
              Energy Sales: 22m1 customers in                      Top 3
                                                                                             Top 3
                                                                                                                                            High customer loyalty
              8 countries                                                                            Top 3
                                                                           Top 2                                        Customer tenure4                       < 2y
              B2M/Heat: 10% market share in                                                            Top 3
              Germany & Sweden                                                     Top 10

              B2B Solutions: ~€1bn          TCV2    in                                                                                        > 5y
              2017                                                                                                                                              2-5y

  1. Excluding Turkey, 2. Total Contract Value, 3. Adjusted for non operating effects, 4. B2C customers in Germany and UK.                                                          52
E.ON standalone

  E.ON is leading the transformation of energy sales
                        Standard tariff customer numbers declining                       Attractive products
                                                                                         Innovative and green tariffs
                    7                                                      6.3m         complemented by smart meter
                                                                                                   rollout
   accounts in m

                    6
     Customer

                    5                                             Turnaround in
                    4                                           customer numbers                                          Protecting
                                                                                                                           revenues
                   Q1 16    Q2 16   Q3 16    Q4 16 Q1 17       Q2 17   Q3 17    Q4 17

                   UK SVT customers         UK B2C customers
                                                                                        Focused sales channels

                               2016 year of peak margins1
                   8
                   6
                                                                           UK            Rigorous cost focus               Increasing
      % margin

                   4
                   2                                                                    Reduce cost to acquire and cost     EBIT into
                                                                                            to serve dramatically         next decade
                   2013         2014          2015       2016           2017

  1. Final figure for 2017 not yet available: ~5%.                                                                                      53
E.ON standalone

  Increase customer attraction while reducing cost to acquire

       Product offering and selection of sales channels lead to…                         …increase in customer numbers…

                            200k innovative tariffs sold since June 2017                                                      ~24m
   Tariff innovations

                            > 5,000 E.ON Plus products (devices as add-on to
                            tariffs) sold                                         ~22m

                            18% of our customer base with add-on services
                                                                                  2017                                           2025
                            +100% value-add services contracts in 2017
                                                                                   …at the same time reducing costs to acquire
                        Scale sales cooperations with big retailers (e.g. Lidl)
   Sales channels

                        • Innovative tariff offering
                        • Focus on earning customers’ loyalty
                        Sales push in digital
                        • From broker site to own website e.g. GER, UK, SWE
                        Home move journey as acquisition channel
                                                                                   Physical channel         Digital channel
                                                                                                                                     54
E.ON standalone

  Closing the gap - Cost to serve to be reduced dramatically

       Measures to reduce cost                        Efficiency programs                        Cost to serve ambition
              to serve                                                                           €/customer account

         Other                                                Fokus

      Metering &
      Installation    Smart Meter                       ~€120m savings
         Debt           Rollout
       resolution

       Servicing
                                                                SWAT
         and
       Backoffice
                                                        ~£100m savings
                                                                                                   E.ON        E.ON ambition
    Components of
     cost to serve1

                              Tackling cost to serve and overall cost efficiencies to support earnings

  1. Example UK                                                                                                                55
E.ON standalone

  Re-inventing our customer business with the digital attacker

        Cost
E.ON standalone

  New Solutions - Strive for leadership with innovative products

                                           B2B                                B2M                       B2C

                                                                         District heating            PV + battery
                                   Decentral generation
    Product offering

                                     Energy efficiency
                                                                      City quarter solutions          Smart home
                                   Flexibility & storage
                                                                 Integrated city energy solutions    Smart meter
                                 Digital energy solutions

                                                               E-mobility

                                                            EBIT margin > 10%
   Ambition
    2025

                                EBIT1 ~€250-300 m                      EBIT1 ~€200 m                EBIT1 >~€50 m

  1. Adjusted for non operating effects                                                                             57
E.ON standalone

  B2B - E.ON to become a leading Energy Service Company in Europe
              Ambitious organic growth of TCV1 …                                                         …to translate into EBIT2 over time
                                                                                                                                          ~ €250-300m

                                    ~>2 x                                                                            ~+25% CAGR
              ~2 x

      2016           2017              …            2020            2025                          2016        2017                 2020       2025

                                                                      Become a leading Energy Service
                                                                                 Company

                  Decentral                                      Energy                       Flexibility &                   Digital energy
                  generation                                    efficiency                      storage                         solutions

  1. Total Contract Value, 2. Adjusted for non operating effects.                                                                                       58
E.ON standalone

  B2M – E.ON is a reliable partner for cities and communities

                 Investments with low risk and high return                                                                     Project examples

                                                        Capex2 2018-2020
           ROCE > 10%
                                                                                                                                 > €250m capex project close to
           Stable (long-term) earnings                     ~€ 800m                                                                Stockholm, COD 2019
                                                                                                 Högbytorp, Stockholm
           15-20 year contracts                                                                                                  100 MW CHP district heating
                                                                                                                                  network extension and biogas as part
                                                                                                                                  of a circular economy project
          E.ON to benefit from market trends and investments

                     Heat EBIT3 €m
                                                        ~€200m                                                            Can provide heating and cooling for an
                                                                                                                           entire city, optimising excess heating and
                                                                                                                           cooling
                                                                                                       ectogrid™          First ectogrid under construction in Lund,
                                                                                                                           Sweden
                              2017                       2025
                        Sweden       Germany       UK
                                                                                                                          Patented global solution - available to be
                                                                                                                           sold and integrated in other cities
  1. Germany, Sweden, UK, 2. Capex net of divestments, including investments for Högbytorp, 3. Adjusted for non operating effects.                                      59
E.ON standalone

  B2C - E.ON drives the electrification of the home and mobility
      E.ON product offering for the electrification of home                 Translating into decent EBIT in the next decade
                                                                   EBIT1 €m
        PV + battery                        E.ON Plus +
      E.ON SolarCloud                      smart meters

        E-mobility                         Home
         solutions                        heating

                  Example: PV + battery growth story
   PV + battery units sold
                                       E.ON – the fastest                                       ~€50m
                                         growing solar
                        ~3x
                                      company in Germany
           ~5x

    2015         2016         2017                  …       2025     2017                        2025                     beyond

  1. Adjusted for non operating effects                                                                                            60
E.ON standalone

  Disciplined investment plan to support growth opportunities

         Temporary high investments for smart meter & IT                                           Medium-term EBIT development

   Capex1 2018-2020              €2.4bn                                             Customer Solutions EBIT2 2017-2020
                                                                    Asset-backed
                                                                    investments
                                      Other

                                                                                               €526m
                              E-mob                                                                           Restructuring
                                                                                    Heat &
                                                                                       New                    charges
                                                        Heat &                     Solutions
                           IT &
                           efficiency                   B2B projects
                                                                                    Energy
                                                                                     Sales
                                  Smart
      Partially                   meter
     temporary

                                                                                               2017    2018                   2020   …   2025

  1. Capex net of divestments, 2. Adjusted for non operating effects.                                                                           61
Growth Focus Discipline

             Renewables
                 E.ON standalone
E.ON standalone

  Position of strength

                  ~4 GW1                          ~3 GW1                       Highlights

                                                                         €0.5bn EBIT 2017
                                                                         (~18% of core EBIT)
                 Stella                      Arkona
                                                                         ~95% Long-term contracted
                             Rampion                                     or hedged until 2020

                                       Morcone                       1
                                                                         Strong track record with
                                                                         ~7 GW1 delivered
                                        1.4 GW1            0.2 GW1

       Under construction:              0.6 GW1            0.2 GW1
                                                                         Active in 3 technologies and
            ~ 1GW                                                        batteries
                                        0.3 GW1            0.2 GW1
  1. Gross capacity                                                                                 63
E.ON standalone

  Growth trend unbroken – RES to dominate global power generation
                                                              Capacity additions forecast                         Bid prices per technology
                 Industry trends
                                                             Annual build rate avg. 2018-’301                                (EUR/MWh)

                                                                                                               Offshore                    Onshore
                                                                                                                                     109
                                                                                                         103
            Decarbonization
                                                                                                                        merchant2
                                                                                                                                             66
                                                                             59 GW
                                                                                                                  55
                                                                    44 GW                                                                            43
                                                                                       38 GW
        Strong cost decrease
                                                                                               17 GW
                                                           7 GW

                                                         Offshore Onshore Utility- CCGT        Nuclear   2015    2016    2017       2015    2016   2017
                                                                          scale PV

                                                                  ~300 turbines per week

  1. Bloomberg New Energy Outlook 2017, 2. German Power Baseload forward 2019 (08.03.2018).                                                               64
E.ON standalone

  E.ON aims to grow at scale in Onshore

                        Onshore
                                                                                             Offshore
             Capitalize on attractive                                                  Leverage existing
                                                                                                                    Solar PV
                ~8 GW pipeline                                                         options in Europe
                                                                                                                 • From boutique
                                                                                                  +40%2            to industrial
                           +20-25%
                                                                                                                 • Capex light
                                                                                       ~1 GW1
             ~5 GW1
                                                                                           2017           2020
               2017                         2020

  1. Operated capacity, 2. ~400MW net capacity addition. Gross capacity addition: 800MW.                                           65
E.ON standalone

  High share of contracted revenues provides stability and visibility

              High earnings stability and visibility                   Clear guiding principles
                                                                • High earnings stability

                                                                • Secure long-term stable off-take
       ~95% hedged or long-term contracted1                       agreements for new investments

                                                                • Revenue optimization for assets at the end
                                                                  of support scheme
                 ~75% long-term contracted1                       (rolling 3 year hedging)

                                                                • Active commercial risk management/value
                                                                  optimization incl. congestion hedging, day-
                                                                  ahead/intra-day optimization
        2017              2018         2019              2020

       Merchant          Hedged   Long-term contracted

  1. Average 2017-2020                                                                                          66
E.ON standalone

  Integral part of E.ON - Modular value crystallization

                     Develop & Sell & (Operate)                             Build & Sell & Operate                       Build & Keep
                 • Rapid monetization of value                    • Reduce exposure in certain
                                                                                                             • Resilient long-term cash flows
                 • Capex light                                      geographies
                                                                                                             • Strong operational capabilities ensure
                 • Additional value from long-term                • Additional value from long-term O&M
                                                                                                               E.ON being an efficient asset owner
                   O&M services                                     services
  Case studies

                                   Deal value: ~$100m1                                  Deal value: ~$650m
                                                                                                                                Capex: ~€1bn
                                   Year: 2016                                           Year: 2014
                                   Sold: 100%
                                                                  Magic Valley     12   Sold: 80%
                                                                                                                                COD: 2015
                      Afton                                                                                    Amrumbank        Cap.: 302 MW
                                   Cap.: 50 MW                     Wildcat 13           Cap.: 405 MW

  1. InfraRed Capital Partners, 2. Magic Valley 1: 203MW, 3. Wildcat 1: 202MW.                                                                          67
E.ON standalone

  Technical/digital excellence to drive down LCOE1

                  Predictive maintenance roll-out                    Array layout optimizer

                                                                                        Self-learning
                                                                                   algorithms to optimize
                                                                                     wind park layout in
                            60%
                                                                                      order to increase
         10%
                                                                                   production and reduce
        2017                2018              2019            2020                      wake effects

                       Transparent and effective capex and
                                                                          Single digit yield increase
                                opex allocation

                                                                      Turbine selection tailored to site
                                     Extension of life-time
                                                                                 conditions

           1           Improved load factors and availability         Data driven investment decision

  1. Levelized cost of electricity                                                                          68
E.ON standalone

  Play at scale in Onshore - Attractive pipeline in Tier 1 geographies

   Gross capacity additions 2018-2020 (MW)                                                      Onshore pipeline    Onshore pipeline

                                           ∑~2GW

                                                                                                       ~5.9              ~1.8
                                                                                                       GW                GW

      COD          COD           COD          COD          COD
      2016         2017          2018         2019         2020
                                                                                                         100% PTC         Nordic
                                         New Projects
      Onshore          Offshore1, 2                                                                      80% PTC          UK
                                         (Pre- FID pipeline)
                                                                                                         Other            Other EU

  1. 2018 COD: Rampion (Gross delivery: 400 MW, EU Offshore), Stella (Gross delivery: 201 MW, US Onshore),                             69
  2. 2019 COD: Arkona (Gross delivery: 385 MW, EU Offshore), Morcone (Gross delivery: 57 MW, EU Onshore).
Growth Focus Discipline

       Financial Appendix
                  E.ON standalone
E.ON standalone

  Highly stable business profile
  Business profile                                                                              FY EBITDA 20171

             High share of regulated and long-term contracted
              earnings (~3/4 of EBITDA)
              Operations in Energy Networks under stable, well
                                                                                                            15%                                  Energy
                                                                                                                                                 Networks

             established frameworks in low risk markets with
              strong regulatory track record
                                                                                                      13%
                                                                                                              €5.0bn          56%
                                                                                                                                                 Customer
                                                                                                                                                 Solutions
                                                                                                                                                 PreussenElektra (non-core)
                                                                                                        16%

             Predominantly quasi-regulated or contracted
              earnings in heat operations and Renewables
                                                                                                                                                 Renewables

             Remaining merchant exposure in Renewables and
              PreussenElektra largely hedged                                                           ~3/4 from regulated/long-term contracted
                                                                                                                     businesses2

  1. Adjusted for non operating effects, representation in pie charts excluding Corporate Functions/Other; total figure including Corporate Functions/Other,                  71
  2. Including Energy Networks and a portion of Renewables and Heat.
E.ON standalone

  E.ON today – Regulated Energy Networks at the heart

  Key financials                                                           Core EBIT1 2017                  Share of regulated/
      2017                                                                                                 long-term contracted
                                                                                                                businesses2
    Group EBIT1
                                  Customer Solutions                        Energy Networks   Renewables
       €3.1bn

  Adj. Net Income1

        €1.4bn                            €0.5bn                               €1.9bn           €0.5bn          Regulated/contracted
                                                                                                                Merchant

                                    Strong pillars with Customer Solutions and Renewables

  1. Adjusted for non operating effects, 2. Percentage as of Group EBIT.                                                               72
E.ON standalone

  2017 yet another year of strong delivery

                            Highlights                                                   Key Financials1
                                                          EBIT                          Adj. Net Income
              EBIT and Adj. Net Income at the upper end   €m                            €m
              of the guidance range                                                                                      Economic Net Debt
                                                                                                                         € bn      -7.1

                                                           3,112       3,074                                               26.3
                                                                                                 +58%
              Adj. Net Income + 58% versus FY 2016
                                                                                                        1,427                              19.2

                                                                                           904
              Economic net debt reduced to €19.2bn

              Dividend 2017 of €0.30/share confirmed
                                                          FY 2016     FY 2017            FY 2016     FY 2017             FY 2016          FY 2017
                                                                    Guidance range EBITDA €2.8-3.1bn, Adj. Net Income 1.2-1.45bn

  1. Adjusted for non operating effects                                                                                                             73
Growth Focus Discipline

Q1 2018 – Financial Appendix
                     E.ON standalone
E.ON standalone

  Financial Highlights

                                                                                       EBIT                                     Adj. Net Income
                                                                                       • Energy Networks: -5% YoY               • Improves €202 m YoY
                                                                                         Reversal of regulatory effects in
    €m                               Q1 2017           Q1 2018          % YoY
                                                                                         Germany and tariff increases in          Driven by strong EBIT and
                                                                                         Sweden                                   profiting from refinancing
   Sales                              10,480              9,330            -11         • Customer Solutions: +23% YoY             benefits and stable tax rate
             1                                                                           Price increases in Germany 2017,         (25%)
   EBITDA                               1,517             1,715           +13
                                                                                         competitive dynamics in the UK
   EBIT 1                               1,038             1,284           +24          • Renewables: +7% YoY
                         1                                                               Capacity additions, partly offset by
   Adjusted net income                    525               727           +38
                                                                                         subsidy expiries
   OCF bIT                              1,027               359            -65
                                                                                                                                Investments
   Investments                            588               696           +18             OCF bIT                               • Energy Networks: €271 m
   Economic net debt ²               -19,248            -19,658             -2            • Cash provided by operating            (vs. €260 m YoY)
                                                                                            activities €0.7 bn below prior-     • Customer Solutions: €74
                                                                                            year level                            m (vs. €64 m YoY)
                                                                                          • Key driver: One-off effects in      • Renewables: €180 m
                                                                                            Working Capital                       (vs. €251 m YoY )
                                                                                                                                • Non-Core: €161 m
                                                                                                                                  (vs. €5 m YoY)

  1. Adjusted for non operating effects, 2. Economic net debt as per 31 Dec 2017 and
  31 Mar 2018; Economic net debt definition takes into account the decommissioning
                                                                                                                                                            75
  provisions calculated with a real discount rate of 0.0% as opposed to IFRS AROs.
E.ON standalone

  Seasonally low CCR2

    Q1 2018
   € bn
                                        21%
          1.7
                              0.0

                                                  -1.3

                                                                       0.4
                                                                                                                                    0.1
                                                                                          -0.1
                                                                                                               -0.1
                                                                                                                                                           -0.7

                                                                                                                                                                  -0.5
       EBITDA1              Cash            Change in WC            OCF bIT              Interest         Tax Payments              OCF                Capex      FCF
                        Adjustments3                                                    Payments

  1. Adjusted for non operating effects, 2. Cash Conversion Rate: OCF bIT ÷ EBITDA, 3. Net non cash effective EBITDA items incl. provision utilizations.                 76
E.ON standalone

  Segments: Energy Networks

    Energy Networks                                                                                     Highlights
     EBIT1 € m                                                                                          • Germany
                                              -5%
                                                                                                          – Reversal of regulatory effects
                                    678                  642                                              – New regulatory period gas
                                                                                                          – Concession loss Hamburg
             Germany                415                  353                                            • Sweden
                                                                                                          + Power tariff increase
               Sweden                                    151
                                   132                                                                  • CEE & Turkey
    CEE & Turkey                   131                   138                                              + Regulatory improvements in Turkey
                                Q1 2017                 Q1 2018

             €m                                          Germany                      Sweden                        CEE & Turkey                      Total
                                              Q1 2017     Q1 2018   % YoY   Q1 2017   Q1 2018   % YoY     Q1 2017     Q1 2018      % YoY   Q1 2017   Q1 2018   % YoY
            Revenue                             3,426       2,229     -35       298       293      -2         475         432         -9     4,199     2,954     -30
  Details

             EBITDA 1                             559         490     -12       173       190     +10         185         197         +6       917       877      -4
             EBIT 1                               415         353     -15       132       151     +14         131         138         +5       678       642      -5
             thereof Equity-method earnings        16          16      +0         0         0       -          22          30        +36        38        46     +21
             OCFbIT                               720          23     -97       142       267     +88         152         164         +8     1,014       454     -55
            Investments                            98         108     +10        60        55      -8         102         108         +6       260       271      +4

  1. Adjusted for non operating effects                                                                                                                                77
E.ON standalone

  Segments: Customer Solutions

    Customer Solutions                                                                                      Highlights
     EBIT1 € m                                +23%
                                                                                                            • Germany Sales
                                                                                                              + Price increases as per Q2 2017
                                                          392                                                 + Lower gas procurement costs
                                    319                                                                       – Restructuring costs
                                                          128
  Germany Sales                     38
                                                                                                            • UK
                      UK            160                   148                                                 + Price increases as per Q2 2017
                                                                                                              – Competitive dynamics
                  Other             121                   116                                                 – Restructuring costs
                                Q1 2017                 Q1 2018                                               – Price caps (PPM2, vulnerable customers)

             €m                                         Germany Sales                       UK                           Other                        Total
                                              Q1 2017     Q1 2018       % YoY   Q1 2017   Q1 2018   % YoY      Q1 2017   Q1 2018   % YoY   Q1 2017   Q1 2018   % YoY
            Revenue                             2,155       2,013          -7     2,151     2,391     +11        2,244     2,341      +4     6,550     6,745      +3
  Details

             EBITDA 1                              44         135       +207        184       169      -8          167       159      -5       395       463     +17
             EBIT 1                                38         128       +237        160       148      -8          121       116      -4       319       392     +23
             thereof Equity-method earnings         0           0           -         0         0       -            3         1     -67         3         1     -67
             OCFbIT                              -178        -169          +5         9      -103       -            2       -76       -      -167      -348    -108
            Investments                             3           4         +33        46        40     -13           15        30   +100         64        74     +16

  1. Adjusted for non operating effects, 2. Prepayment Meter.                                                                                                          78
E.ON standalone

  Segments: Renewables

    Renewables                                                                                                  Highlights
     EBIT1 € m                                +7%                                                               • Offshore/Other
                                                                                                                  + UK: Ramp-up capacity additions (Rampion)
                                                        171
                                  160                                                                           • Onshore/Solar
                                                                                                                  + US: Capacity additions (Bruenning’s Breeze, Radford’s Run)
  Offshore/Other                   99                   113                                                       – Subsidy expiries

   Onshore/Solar                   61                   58

                               Q1 2017              Q1 2018

             €m                                     Onshore Wind / Solar               Offshore Wind / Others                    Total
                                              Q1 2017     Q1 2018          % YoY   Q1 2017    Q1 2018       % YoY     Q1 2017   Q1 2018   % YoY
            Revenue                               188         234            +24       188        167         -11         376       401      +7
  Details

             EBITDA 1                             113          97            -14       136        150         +10         249       247      -1
             EBIT 1                                61          58             -5        99        113         +14         160       171      +7
             thereof Equity-method earnings                                                                                11         8     -27
             OCFbit                                                                                                       187       228     +22
            Investments                                                                                                   251       180     -28

  1. Adjusted for non operating effects                                                                                                                                          79
E.ON standalone

  Non-core business

    Non-core                                                                                                            Highlights
     EBIT1 € m                                                                                                          •     PreussenElektra
                                               +133                                                                           + Higher volumes due to outages of all plants in Q1 2017
                                                            109
                                                                                                                              + Positive one-off effects in Q1 2018
                                                                                                                              – Lower achieved power prices
                                                                                                                        •     Generation Turkey
               Preussen                                      124
                 Elektra
                                                                                                                              + Book loss from asset sale in Q1 2017
                                      27
            Generation                -51                    -15
               Turkey
                                     -24
                                                                                                                                                        PreussenElektra: Hedged Prices
                                 Q1 2017                 Q1 2018                                                                                        (€/MWh) as of 31 March 2018
             €m                                         PreussenElektra                     Generation Turkey                          Total
                                              Q1 2017      Q1 2018        % YoY   Q1 2017       Q1 2018         % YoY       Q1 2017   Q1 2018   % YoY    2017        100%                     32
            Revenue                               364          278          -24         0             0             -           364       278     -24
  Details

             EBITDA 1                              74          159        +115        -51           -15           +71            23       144   +526     2018        99%           26
             EBIT 1                                27          124        +359        -51           -15           +71           -24       109   +554
             thereof Equity-method earnings        26           25           -4       -51           -15           +71           -25        10   +140     2019        80%                 29
             OCFbIT                               207          112          -46         0             0             -           207       112     -46
            Investments                             5            7          +40         0           154             -             5       161       -    2020         4%                 29

  1. Adjusted for non operating effects                                                                                                                                                            80
E.ON standalone

  Adjusted Net Income

    €m                                    Q1 2017   Q1 2018   % YoY

    EBITDA 1                                1,517     1,715     +13

    Depreciation/amortization                -479      -431     +10
           1
    EBIT                                    1,038     1,284     +24

    Economic interest expense (net)          -195      -177      +9

    EBT 1                                    843      1,107     +31
                           1
    Income Taxes on EBT                      -210      -277     -32
               1
    % of EBT                                -25%      -25%        -
    Non-controlling interests                -108      -103      +5

    Adjusted net income 1                    525       727      +38

  1. Adjusted for non operating effects                               81
E.ON standalone

  Reconciliation of EBIT
  to IFRS Net Income
    €m                                                           Q1 2017   Q1 2018   % YoY
            1
   EBITDA                                                          1,517     1,715     +13

    Depreciation/Amortization/Impairments                           -479      -431     +10

   EBIT 1                                                          1,038     1,284     +24

    Economic interest expense (net)                                 -195      -177      +9
    Net book gains                                                   52       104    +100
    Restructuring                                                    -94       -26     +72
    Mark-to-market valuation of derivatives                         -308      191    +162
    Impairments (net)                                                 3         0     -100
    Other non-operating earnings                                    394        -87    -122
    Income/Loss from continuing operations before income taxes      890      1,289    +45
    Income taxes                                                    -155      -256     -65
    Income/loss from continuing operations                          735      1,033     +41
    Income/loss from discontinued operations, net                     0         0        -
    Net income/loss                                                 735      1,033     +41

  1. Adjusted for non operating effects                                                      82
E.ON standalone

  Cash effective investments
  by unit

    €m                                    Q1 2017   Q1 2018   % YoY
    Energy Networks                          260       271      +4
    Customer Solutions                        64        74     +16
    Renewables                               251       180      -28
    Corporate Functions & Other                8         9     +13
    Consolidation                              0         1        -
    Non-Core                                   5       161        -
    Investments                              588       696     +18

  1. Adjusted for non operating effects                               83
E.ON standalone

  Economic Net Debt1

    €m                                            31 Dec 2017        31 Mar 2018
    Liquid funds                                         5,160               4,108
    Non-current securities                               2,749               2,449
    Financial liabilities                              -13,021            -12,736
    Adjustment FX hedging ²                                114                 166
    Net financial position                              -4,998              -6,013

    Provisions for pensions                             -3,620              -2,924
    Asset retirement obligations                       -10,630            -10,721
    Economic net debt                                  -19,248            -19,658

  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, 2. Net figure;    84
  does not include transactions relating to our operating business or asset management.
E.ON standalone

  Economic interest expense (net)

                                                                                                             Difference
   €m                                                                           Q1 2017        Q1 2018
                                                                                                              (in € m)
   Interest from financial assets/liabilities                                      -175            -156            +19
   Interest cost from provisions for pensions and similar provisions                 -21            -16              +5
   Accretion of provisions for retirement obligation and similar provisions          -17            -20              -3

   Construction period interests¹                                                      8              8              +0
   Others                                                                             10              7              -3
   Net interest result                                                             -195            -177            +18

  1. Borrowing cost that are directly attributable to the acquisition, construction or production of a qualified asset.       85
  Borrowing cost are interest costs incurred by an entity in connection with the borrowing of funds (Interest rate: 5.47%).
E.ON standalone

  Financial Liabilities

               Split Financial Liabilities                                     Maturity profile (as of end Q1 2018)1
                € bn                                                           € bn
                                                                                                                                                     4.8
                                                     31 Mar
                                                      2018
                 Bonds                                 -10.7
                 in EUR                                  -4.0
                 in GBP                                  -3.9
                 in USD                                  -2.4
                                                                                 2.0
                 in JPY                                  -0.2
                 in other denominations                  -0.2                                           1.4
                 Promissory notes                        -0.4                               1.1
                                                                                                                0.8
                 Commercial papers                        0.0                                                                         0.6
                                                                                                                              0.4
                 Other liabilities                       -1.6                                                          0.1                   0.0
                 Total                                 -12.7
                                                                                2018        2019    2020       2021    2022   2023    2024   2025   ≥2026
                                                                                      EUR         GBP         USD      JPY    Other

  1. Bonds and promissory notes issued by E.ON SE and E.ON International Finance B.V. (fully guaranteed by E.ON SE).                                        86
E.ON Investor Relations contacts

        Alexander Karnick            T +49 (201) 184 28 38
        Head of Investor Relations   alexander.karnick@eon.com

        Martina Burger               T +49 (201) 184 28 07
        Manager Investor Relations   martina.burger@eon.com

        Dr. Stephan Schönefuß        T +49 (201) 184 28 22
        Manager Investor Relations   stephan.schoenefuss@eon.com

        Andreas Thielen              T +49 (201) 184 28 15
                                                                   T +49 (201) 184 2806
        Manager Investor Relations   andreas.thielen@eon.com       investorrelations@eon.com

                                                                                               87
Financial calendar & important links

                            Transaction Website: http://www.energyfortomorrow.eu/
                      Financial calendar
                      August 8, 2018               Half-Year Financial Report: January – June 2018

                      November 14, 2018            Quarterly Statement: January – September 2018

                      March 13, 2019               Annual Report 2018

                      May 13, 2019                 Quarterly Statement: January – March 2019

                      Important links
                      Presentations                https://www.eon.com/en/investor-relations/presentations.html

                      Facts & Figures 2018         https://www.eon.com/content/.../presentations/facts-and-figures-2018.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

                      Bonds / Creditor Relations   https://www.eon.com/en/investor-relations/bonds.html

                                                                                                                                          88
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