E.on Se · XETR:EOAN

E.on — Investor Presentation (2018)

106 slides from E.on's investor presentation, 2018

  1. Slide 1: Facts & Figures 2018

    Facts & Figures 2018 C-orl

  2. Slide 2: Content

    Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  3. Slide 3: E.ON at a glance

    E.ON at a glance 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 €0.5bn €1.9bn €0.5bn Regulated/contracted €1.4bn Merchant Strong pillars with Customer Solutions and Renewables

  4. Slide 4: E.ON portfolio

    E.ON portfolio Energy Networks Germany Customer Sweden Solutions CEE1/ Turkey Germany Renewables UK Other Onshore Wind/ PV2 PreussenElektra Offshore Wind/ Other Non-core Core businesses business 1. Central and Eastern Europe 2. Photovoltaic 4

  5. Slide 5: Attractive combination of businesses

    Attractive combination of businesses Energy Networks Customer Solutions Renewables ~€23 bn Regulated Asset Base1 ~22 m Customers across Europe2 ~7 GW Renewables capacity Germany € 10.7 bn Germany 5.9 m delivered Sweden € 3.9 bn UK 6.8 m 11 year track record of CEE² & Turkey3 € 8.5 bn Other EU 9.3 m

  6. Slide 6: E.ON Board of Management

    E.ON Board of Management Johannes Teyssen Leonhard Birnbaum Chief Executive Officer Chief Operating Officer Networks & Renewables  Strategy & Portfolio  Energy Networks  Communications & Political Affairs  Renewables  Legal & Compliance  Sustainability & HSE  Group HR / Executive HR  Procure

  7. Slide 7: Content

    Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  8. Slide 8: Energy Networks

    Energy Networks Energy Networks 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 45 60 137 2 CEE & Turkey Germany Sweden CEE & Turkey €8.5bn3 EBIT4 2017 Market share (%) Sweden ~75% of €0.5bn group core 71 ~€1.9b

  9. Slide 9: Energy Networks at a glance

    Energy Networks at a glance Energy Networks What we do  Within Energy Networks we provide the infrastructure for the new energy world. We manage the grids at the high, medium and low voltage levels.  Power and gas distribution is predominantly a regulated business in our countries of operation  W

  10. Slide 10: Energy Networks: Financial highlights

    Energy Networks: Financial highlights Energy Networks 2016 2017 €m Germany Sweden CEE/Turkey1 Total Germany Sweden CEE/Turkey1 Total Revenues 13.205 1.029 1.658 15.892 14.199 1.072 1.719 16.990 Adjusted EBITDA2 1.507 562 610 2.679 1.641 632 654 2.927 Adjusted EBIT2 894 398 379 1.671 1.050 474 417 1.

  11. Slide 11: Energy Networks GER – Results from participations 2017

    Energy Networks GER – Results from participations 2017 Company Contribution to E.ON result 2017 (€m) Energy Networks At equity consolidation 74 Städtische Werke Magdeburg GmbH & Co. KG 17 Energie und Wasser Potsdam GmbH 11 GASAG AG 9 REWAG Regensburger Energie- und Wasserversorgung AG & Co. KG 8 Sta

  12. Slide 12: Upcoming regulatory periods

    Upcoming regulatory periods Energy Networks Germany 2019 - 2023 Romania 2019 - 20231 Sweden 2020 - 2023 Hungary 2021 - 2024 Power Czech Republic 2021 - 20251 Slovakia 2022 - 2026 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Romania 2019 - 20221 Hungary 2021 - 2024 Czech Republic 2021 - 20251 Ga

  13. Slide 13: Content

    Content 1. Overview 2 2. Energy Networks 7 2.1 Germany 13 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  14. Slide 14: Energy Networks: Germany

    Energy Networks: Germany Energy Networks Germany 2016 2017 2016 2017 Grid length Grid conduct 1 3 Power ('000km) 349 349 Wheeling volumes power (TWh) 117 119 Market share (%) 19 19 Wheeling volumes gas (TWh) 107 111 Gas ('000km)1 60 60 RAB power & gas (€bn)4 10,7 10,7 Market share (%) 12² 12 Major s

  15. Slide 15: German business with 5,400 concessions

    German business with 5,400 concessions Energy Networks Good track record in the past Existing concessions • The German networks business is based on long-term concessions granted by municipalities in the network area Non-concession based RAB1 • Maximum period of concession contract is 20 years ~ 30%

  16. Slide 16: Regulatory environment Germany: Power & Gas

    Regulatory environment Germany: Power & Gas Energy Networks Process steps of regulatory system1 Basics  Method: Revenue cap (incentive regulation)  Regulatory period: 5 years (Second regulatory period: power 2014-2018; gas 2013-2017) Cost audit  Cost audit and benchmarking (for Opex/capital costs

  17. Slide 17: Germany: Regulatory schedule

    Germany: Regulatory schedule Energy Networks Power distribution1 - Illustration Commentary 2nd regulatory period 3rd regulatory period 2nd regulatory period: Allowed capital costs increase due Reduction of allowed regulatory interest rates in 3rd period to higher investments above  Opex and regulat

  18. Slide 18: Germany: Building blocks of allowed revenues

    Germany: Building blocks of allowed revenues Energy Networks Schematic illustration for 2017 (power & gas) € 10.0 bn (Old) (New) Gas Gas1 € 0.3 bn € 2.3 bn Totex indexed to CPI and subject to (New) Power € 2.2 bn general and individual efficieny targets € 5.2 bn thereof ~ € 4.6 bn power Power (Old)

  19. Slide 19: Germany: Determination of regulatory returns

    Germany: Determination of regulatory returns Energy Networks 4 Regulatory returns in German energy networks 2nd regulatory period 3rd regulatory period New assets1 Old assets1 1 Equity return Total New assets Old assets1 Total Asset share 26% 74% 100% 50% 50% 100% Base rate 3,80% 2,24% 2,49% 1,04% M

  20. Slide 20: Content

    Content 1. Overview 2 2. Energy Networks 7 2.2 Sweden 20 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  21. Slide 21: Energy Networks: Sweden

    Energy Networks: Sweden Energy Networks Sweden 2016 2017 2016 2017 Grid length Grid conduct 1 Power ('000km) 136 137 Wheeling volumes power (TWh) 37 37 Market share (%) 25 25 Wheeling volumes gas (TWh) 5 4 Gas ('000km) 2 2 RAB power & gas (€bn)3 3,9 4,0 Market share (%) 71² 71 Major shareholdings E.

  22. Slide 22: Regulatory environment Sweden: Power

    Regulatory environment Sweden: Power1 Energy Networks Overview Key cost factors Basics Capex  Method: Revenue cap  Regulatory return (WACC) on RAB (pre-tax, real): 5.85%6  Regulatory period: 2016-2019  Adjustment of RAB once a period: Standard prices set by regulator  Next regulatory period: 20

  23. Slide 23: Content

    Content 1. Overview 2 2. Energy Networks 7 2.3 CEE 23 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  24. Slide 24: Energy Networks: Hungary

    Energy Networks: Hungary Energy Networks Hungary 2016 2017 2016 2017 Grid length Grid conduct Power ('000km)1 85 85 Wheeling volumes power (TWh) 18 18 Market share (%) 52 52 Wheeling volumes gas (TWh) 15 15 1 2,3 Gas ('000km) 18 18 RAB power and gas (€bn) 1,5 4,3 Market share (%) 21 21 Major shareho

  25. Slide 25: Regulatory environment Hungary: Power

    Regulatory environment Hungary : Power Energy Networks Overview Key cost factors Basics Capex  Method: Price cap with actual quantity acceptance with two year time  Regulatory return (WACC) on RAB (pre-tax, real): 4.69% lag  Annual adjustments of RAB for inflation and depreciation  Regulatory pe

  26. Slide 26: Regulatory environment Hungary: Gas

    Regulatory environment Hungary : Gas Energy Networks Overview Key cost factors Basics Capex  Method: Price cap  Regulatory return (WACC) on RAB (pre-tax, real): 4.62%  Regulatory period: 2017-2020  Annual adjustments of RAB for inflation and depreciation  Next regulatory period: 2021-2024  Dep

  27. Slide 27: Energy Networks: Czech Republic

    Energy Networks: Czech Republic Energy Networks Czech Republic 2016 2017 2016 2017 Grid length Grid conduct 1 Power ('000km) 65 65 Wheeling volumes power (TWh) 13 14 Market share (%) 28 28 Wheeling volumes gas (TWh) 3 4 Gas ('000km)1 5 5 RAB power and gas (€bn)2 1,5 1,6 Market share (%) 6 6 Major sh

  28. Slide 28: Regulatory environment Czech Republic: Power

    Regulatory environment Czech Republic: Power Energy Networks Overview Key cost factors Basics Capex  Method: Revenue cap  Regulatory return (WACC) on RAB (pre-tax, nominal): 7.951%  Regulatory period: 2016-2020  Depreciation period for power lines is 40 years  Next regulatory period*: 2021-2025

  29. Slide 29: Regulatory environment Czech Republic: Gas

    Regulatory environment Czech Republic: Gas Energy Networks Overview Key cost factors Basics Capex  Method: Revenue cap  Regulatory return (WACC) on RAB (pre-tax, nominal): 7.94%  Regulatory period: 2016-2020  Depreciation period for gas pipes is 40 to 50 years  Next regulatory period*: 2021-202

  30. Slide 30: Energy Networks: Romania

    Energy Networks: Romania Energy Networks Romania 2016 2017 2016 2017 Grid length Grid conduct Power ('000km) 81 82 Wheeling volumes power (TWh) 5 6 Market share (%) 1611 16 Wheeling volumes gas (TWh) 26 26 2 Gas ('000km) 21 22 RAB power and gas (€bn) 0,8 0,8 Market share (%) 55 55 Major shareholding

  31. Slide 31: Regulatory environment Romania: Power

    Regulatory environment Romania: Power Energy Networks Overview Key cost factors Basics Capex  Method: Price cap with actual volume acceptance with one year time lag  Regulatory return (WACC) on RAB (pre-tax, real): 7.7%  Regulatory period: 2014-2018  Adjustments of RAB for inflation, depreciatio

  32. Slide 32: Regulatory environment Romania: Gas

    Regulatory environment Romania: Gas Energy Networks Overview Key cost factors Basics Capex  Method: Price cap with actual volume acceptance with one year time lag  Regulatory return (WACC) on RAB (pre-tax, real)4: 8.43% + 1.40%  Regulatory period: 2013-20181 incentive for specific investments in

  33. Slide 33: Energy Networks: Slovakia

    Energy Networks: Slovakia Energy Networks Slovakia 2016 2017 2016 2017 Grid length Grid conduct Power ('000km) 38 38 Wheeling volumes power (TWh) 9 10 Market share (%) 43 45 Wheeling volumes gas (TWh) n/a n/a Gas ('000km) n/a n/a RAB power (€bn) 0,6 0,6 Market share (%) n/a n/a Major shareholdings Z

  34. Slide 34: Regulatory environment Slovakia: Power

    Regulatory environment Slovakia: Power Energy Networks Overview Key cost factors Basics Capex  Method: Price cap  Regulatory return (WACC pretax, nominal) on RAB: set annually; 6.27%  Regulatory period: 2017-2021 for 2018  Next regulatory period: 2022-2026 (expected)  RAB: Depreciated asset bas

  35. Slide 35: Content

    Content 1. Overview 2 2. Energy Networks 7 2.3 Turkey 35 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  36. Slide 36: Turkey: Enerjisa Enerji & Enerjisa Üretim

    Turkey: Enerjisa Enerji & Enerjisa Üretim Energy Networks Enerjisa Enerji (Networks & Retail): 220,000 km networks  #1 Distribution Network Operator by grid length  #1 Energy supplier by customer number Istanbul 2.3 Ankara Free Float 20% 3.6 GW generation capacity 40% 40% 9.2 m retail customers En

  37. Slide 37: Enerjisa Enerji & Enerjisa Üretim: Financial highlights

    Enerjisa Enerji & Enerjisa Üretim: Financial highlights Energy Networks 1,2 Enerjisa Enerji (Networks & Retail) 2016 2017 Revenues (TRL m) 9.103 12.345 3 EBITDA + Capex Reimbursement (TRL m) 1.938 3.147 Net Income (TRL m) 377 985 thereoff one-offs (i.a. change in IFRIC 12 financial asset value) 466

  38. Slide 38: Enerjisa Enerji: Networks & Retail

    Enerjisa Enerji: Networks & Retail Energy Networks Distribution 2016 2017 Retail 2016 2017 Power grid length ('000km) 220 220 Power sales (TWh) 33,3 35,2 1 Market share (%) 20 20 Market share (%) 1 14 14 Grid conduct (TWh) 44 45 # of customers 9,0 9,2 2 2 RAB (€bn) 1,0 1,2 Market share (%) 22 22 RAB

  39. Slide 39: Networks & Retail: Regulatory environment

    Networks & Retail: Regulatory environment Energy Networks Networks Regulatory incentive framework Regulatory - WACC (Pre-tax real, local currency)  3rd regulatory period: 2016-2020  Opex outperformance  Return on RAB (RAB 2017: TRL 5.3bn)  Theft & loss allowance  Financing outperformance in 201

  40. Slide 40: Enerjisa Üretim: Generation & Trading (1)

    Enerjisa Üretim: Generation & Trading (1) Energy Networks Assets Enerjisa Üretim1 Generation Production Start-up Remuneration per Power plant Type Revenue stream capacity (MW) (GWh) year MWh In operation Market prices ; Bandırma-I Gas 931 5.605 2010 Capacity mechanism 2 Market prices ; Bandırma-II G

  41. Slide 41: Enerjisa Üretim: Generation & Trading (2)

    Enerjisa Üretim: Generation & Trading (2) Energy Networks 1 Assets Enerjisa Üretim Generation Production Start-up Remuneration Power plant Type Revenue stream capacity (MW) (GWh) year USD/MWh Çambaşı Hydro 45 148 2013 FIT $ 73 Kavşakbendi Hydro 191 584 2014 FIT $ 73 2 Arkun Hydro 245 619 2014 FIT $

  42. Slide 42: Generation & Trading: Regulatory environment

    Generation & Trading: Regulatory environment Energy Networks Renewables (Feed in Tariff) Incentive framework USD denominated (USD/MWh) • Stable cash flows from USD-denominated feed-in tariffs (for 10 years) 133 • Annual flexibility to opt for either feed in tariffs or market prices 73 73 • Higher fe

  43. Slide 43: Content

    Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  44. Slide 44: Customer Solutions

    Customer Solutions Customer Solutions Customer Focused Portfolio E.ON’s market positions Energy Sales is the anchor business B2B EBIT3 2017 €526m Energy Sales EBIT4 Customer B2C Top 3 Heat & B2B B2M New Solutions ~25% Energy B2C ~75% Top 3 Sales Energy Sales: 22m1 customers Top 3 Top 3 in 8 countrie

  45. Slide 45: Customer Solutions at a glance

    Customer Solutions at a glance Customer Solutions What we do  Customer Solutions comprises our energy sales, heat and new solutions business  Our product offering ranges from classic power and gas sales to district and local area heating solutions and new solutions, such as on site generation, vir

  46. Slide 46: Customer Solutions: Financial highlights

    Customer Solutions: Financial highlights Customer Solutions 2016 2017 €bn Germany UK Other Total Germany UK Other Total Revenues 7.781 7.791 6.796 22.368 7.452 7.205 6.910 21.567 Adjusted EBITDA1 299 460 351 1.110 192 353 302 847 Adjusted EBIT1 232 365 215 812 118 250 158 526 1 Adjusted EBIT margin

  47. Slide 47: Customer Solutions: Financial highlights

    Customer Solutions: Financial highlights Customer Solutions Adjusted EBIT1 by business pillars €bn Energy sales2 2016 0.3 0.3 0.7 Energy sales2 financials €bn 2017 0.2 0.2 0.4 Gross Margin 2016 1.2 1.3 Heat 2016 0.1 2017 1.1 1.2 2017 0.1 Opex3 2016 0.8 2016 0.8 1.0 Total Adj. EBIT 2017 0.8 1.0 2017

  48. Slide 48: Content

    Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 43 3.1 Energy sales: Country-by-country 48 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  49. Slide 49: Energy sales: Germany & UK

    Energy sales: Germany & UK Customer Solutions Germany 2016 2017 UK 2016 2017 1 Power sales (TWh) 46,3 39,9 Power sales (TWh) 37,4 34,8 # of E.ON customers - power (m) 5,3 5,1 # of E.ON customers - power (m) 4,3 4,2 # of customers total market - power (m)² 45,7 45,7 # of customers total market - powe

  50. Slide 50: Energy sales: Sweden & Italy

    Energy sales: Sweden & Italy Customer Solutions Sweden 2016 2017 Italy 2016 2017 Power sales (TWh) 15,7 15,7 Power sales (TWh) 8,2 7,6 # of E.ON customers - power (m) 0,7 0,7 # of E.ON customers - power (m) 0,2 0,3 # of customers total market - power (m) 1 4,5 4,5 # of customers total market - power

  51. Slide 51: Energy sales: Romania & Czech Republic

    Energy sales: Romania & Czech Republic Customer Solutions Romania 2016 2017 Czech Republic 2016 2017 Power sales (TWh) 4,7 6,0 Power sales (TWh) 15,9 16,1 # of E.ON customers - power (m) 1,4 1,4 # of E.ON customers - power (m) 1,1 1,0 # of customers total market - power (m)1 17,2 17,2 # of customers

  52. Slide 52: Energy sales: Hungary & Slovakia

    Energy sales: Hungary & Slovakia Customer Solutions Hungary 2016 2017 Slovakia 2016 2017 Power sales (TWh) 13,6 14,4 Power sales (TWh) 5,6 5,7 # of E.ON customers - power (m) 2,5 2,5 # of E.ON customers - power (m) 0,9 0,9 1 # of customers total market - power (m) 6,9 6,9 # of customers total market

  53. Slide 53: Content

    Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 43 3.2 Heat and New Solutions 53 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  54. Slide 54: Heat business at E.ON

    Heat business at E.ON Customer Solutions Business models Illustrative infrastructure Business characteristics District heating • Large scale, entire cities or districts • Connection of multiple decentralised energy sources • E.ON activities in attractive urban locations, e.g. Malmö, Stockholm, Hambu

  55. Slide 55: New Solutions: B2B Large

    New Solutions: B2B Large Customer Solutions Energy Consulting Decentral Generation Flexibility & Storage Energy On-site Efficiency Solutions Generation Digital Energy Solutions Solutions Solutions Generating energy efficiently Managing energy consumption Optimizing and monetizing Digitally optimizin

  56. Slide 56: New Solutions: B2C/SME and eMobility

    New Solutions: B2C/SME and eMobility Customer Solutions PV & Storage Home Heating eMobility Significant scaling of E.ON Aura across More than doubled sales of heating Major position in Denmark with more Germany – an all-in-one solution devices – boiler, heat pump, fuel cell – than one million chargi

  57. Slide 57: Heat and New Solutions in figures

    Heat and New Solutions in figures Customer Solutions Heat networks 2016 2017 New Solutions 2016 1 2017 1 Germany On-site generation (incl. industrial generation) (MW) 1.247 1.309 Heat sales (TWh) 2,2 2,2 thereof Germany² 698 700 Market share (%) 5 5 thereof UK 464 481 # of connected households (k) 1

  58. Slide 58: Content

    Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  59. Slide 59: Renewables

    Renewables ~4 GW1 ~3 GW1 Highlights €0.5bn EBIT 2017 (~18% of core EBIT) Stella Arkona ~95% Long-term contracted or hedged until 2020 Rampion 1 Strong track record with Morcone ~7 GW1 delivered 1.4 GW1 0.2 GW1 Active in 3 technologies and Under construction: 0.6 GW1 0.2 GW1 batteries ~ 1GW 0.3 GW1 0

  60. Slide 60: Renewables at a glance

    Renewables at a glance Renewables What we do  We are among the largest renewable energy players in our core markets Wind Onshore (Europe and US)  Our strategic focus is to grow at scale in onshore wind, leverage our existing options in offshore wind, rise from boutique to industrial with a Wind Of

  61. Slide 61: Renewables: Financial highlights

    Renewables: Financial highlights Renewables 2016 2017 €m Onshore Wind/ PV Offshore Wind Total Onshore Wind/ PV Offshore Wind Total Revenues 728 629 1.357 927 677 1.604 Adjusted EBITDA1 308 488 796 299 486 785 1 Adjusted EBIT 92 338 430 117 337 454 Investments (cash-effective) 465 605 1.070 568 657 1

  62. Slide 62: Technology and country profile

    Technology and country profile Renewables Capacity (MW) Production (GWh) 2017 Onshore Offshore PV Total Onshore Offshore PV Total Accounting view Germany 220 302 0 522 392 1.144 0 1.536 UK 250 646 0 896 552 2.24111 0 2.793 US 2.623 0 15 2.638 6.503 0 39 6.542 Denmark 0 0 0 0 0 0 0 0 Sweden 123 48 0

  63. Slide 63: Onshore wind + PV: Key data

    Onshore wind + PV: Key data Renewables Capacity (MW) Production (GWh) Avg. Revenue (€/MWh) 1 2 2016 2017 2016 Load factor % 2017 Load factor % 2017 Accounting view Germany 209 220 314 17 392 21 92 UK 250 250 505 23 552 26 112 US Onshore 2.089 2.623 5.989 34 6.503 36 38 US PV + Energy storage 19 15 3

  64. Slide 64: Offshore wind: Key data

    Offshore wind: Key data Renewables Avg. revenue Capacity (MW) Production (GWh) (€/MWh) 2016 2017 2016 Load factor % 2017 Load factor % 2017 Accounting view Germany 301 302 1.117 43 1.144 44 193 UK 646 646 2.097 38 2.241 40 155 Denmark 0 0 0 0 0 0 0 Sweden 48 48 201 47 199 48 42 Total 995 996 3.415 4

  65. Slide 65: Portfolio changes in 2017

    Portfolio changes in 2017 Renewables Portfolio Changes 2017 Pre transaction Post transaction Support Total capacity Load Type of Transaction E.ON share Accounting E.ON share Accounting Support Support level/ Windfarm MW factor % transaction date in % treatment1 in % treatment regime 2 MWh Onshore Co

  66. Slide 66: Projects under construction

    Projects under construction Renewables Projects under construction Total capacity E.ON share E.ON share Accounting Load factor % Support Support Support Windfarm Country COD1 2 MW pro rata MW in % treatment (est.) regime expiry level/MWh Onshore Morcone IT 57 57 100 n/a n/a Q3/2019 CfD 2039 66/MWh S

  67. Slide 67: Asset overview Germany (Onshore 1)

    Asset overview Germany (Onshore 1) Renewables Assets Germany Total capacity E.ON share Pro rata Accounting Total production Load Support Support COD MW % MW treatment 2017 GWh1 factor % regime expiry Onshore Alt Mahlisch I 5 67 3 2 9 23 04/2002 FIT 03/2022 Alt Mahlisch II 4 67 2 2 6 17 12/2003 FIT 1

  68. Slide 68: Asset overview Germany (Onshore 2)

    Asset overview Germany (Onshore 2) Renewables Assets Germany Total capacity E.ON share Pro rata Accounting Total production Load Support Support COD MW % MW treatment 2017 GWh1 factor % regime expiry Mutzschen I 8 67 5 2 23 31 12/2004 FIT 01/2022 Mutzschen II 6 67 4 2 18 31 09/2006 FIT 08/2023 Naund

  69. Slide 69: Asset overview Germany (Offshore)

    Asset overview Germany (Offshore) Renewables Assets Germany Total capacity E.ON share Pro rata Accounting Total production Load Support Support Support level 1 COD MW % MW treatment 2017 GWh factor % regime expiry €/MWh Offshore 2 Alpha Ventus 1 30 26 8 3a 110 39 03/2010 FIT 03/2030 154 Alpha Ventus

  70. Slide 70: Asset overview UK (Onshore 1)

    Asset overview UK (Onshore 1) Renewables Assets UK Total Total capacity E.ON share Pro rata Accounting Load Support Support production COD MW % MW treatment factor % regime expiry 2017 GWh1 Onshore Bowbeat (Emly Bank) 16 100 16 1 31 22 10/2002 NFFO/ROC 10/2026 Bowbeat (Roughside) 16 100 16 1 31 22 1

  71. Slide 71: Asset overview UK (Onshore 2)

    Asset overview UK (Onshore 2) Renewables Assets UK Total Total capacity E.ON share Pro rata Accounting Load Support Support production COD MW % MW treatment 1 factor % regime expiry 2017 GWh Holmside (NFFO) 2 100 2 1 4 20 01/2004 NFFO 11/2018 Holmside (ROC) 3 100 3 1 5 20 01/2004 ROC 03/2027 Out New

  72. Slide 72: Asset overview UK (Offshore)

    Asset overview UK (Offshore) Renewables Assets UK Total capacity E.ON share Pro rata Accounting Total production Load Support Support Support level 1 COD MW % MW treatment 2017 GWh factor % regime expiry ROC/MWh Offshore Blyth (NFFO) (decom in 2018) 2 100 2 0 0 NFFO Blyth (ROC) (decom in 2018) 2 100

  73. Slide 73: Asset overview Italy

    Asset overview Italy Renewables Assets Italy Total capacity E.ON share Pro rata Accounting Total production Load Support Support COD MW % MW treatment 2017 GWh1 factor % regime expiry Onshore Alcamo 32 100 32 1 70 25 10/2011 FIP 10/2026 Florinas 20 100 20 1 30 17 04/2004 expired 04/2016 Iardino 14 1

  74. Slide 74: Asset overview Denmark

    Asset overview Denmark Renewables Assets Denmark Total capacity E.ON share Pro rata Accounting Total production Load Support Support Support level 1 COD 2 MW % MW treatment 2017 GWh factor % regime expiry DKK/MWh Offshore Rødsand 2 207 20 41 3a 833 46 12/2010 CfD 01/2022 629 Total Denmark 207 41 833

  75. Slide 75: Asset overview Sweden

    Asset overview Sweden Renewables Assets Sweden Total capacity E.ON share Pro rata Accounting Total production Load Support Support 1 COD MW % MW treatment 2017 GWh factor % regime expiry Onshore Boel (decom) 0 100 0 1 3 33 01/2001 expired 12/2015 Knäred 20 100 20 1 55 31 05/2012 Green Certificate 04

  76. Slide 76: Asset overview Poland

    Asset overview Poland Renewables Assets Poland Total capacity E.ON share Pro rata Accounting Total production Load Support Support 1 COD MW % MW treatment 2017 GWh factor % regime expiry Onshore Barzowice I 21 100 21 1 68 38 09/2011 Green certificate 07/2026 Lebcz I 8 67 5 2 18 27 01/2007 Green cert

  77. Slide 77: Asset overview US (1)

    Asset overview US (1) Renewables Assets US Total capacity E.ON share Pro Rata Accounting Total production Load Support Support Support level 1 2 COD 3 PPA MW % MW treatment 2017 GWh factor % regime expiry $/MWh Onshore Anacacho 100 100 100 1 333 39 12/2012 REC/PTC 12/2022 24 yes Bruenning's Breeze 2

  78. Slide 78: Asset overview US (2)

    Asset overview US (2) Renewables Assets US Total capacity E.ON share Pro Rata Accounting Total production Load Support Support Support level 1 COD PPA MW % MW treatment 2017 GWh factor %2 regime expiry $/MWh3 Pioneer Trail 150 100 150 1 468 37 01/2012 REC/PTC 12/2021 24 yes Pyron 249 100 249 1 713 3

  79. Slide 79: Regulatory support

    Regulatory support Renewables E.ON Renewables footprint (2017)1 Revenues  Merchant: Wholesale power price, Variable certificates Merchant Quasi-regulated  Quasi-regulated: Feed in tariffs, Production Tax Credits (PTC), 28% 72% Contracts for Difference (CfD), Fixed Power Purchase Agreements (PPAs),

  80. Slide 80: Current regulatory regimes and frameworks

    Current regulatory regimes and frameworks Renewables US UK Onshore Offshore  Support regime:  Support regime: Renewable obligation (RO), implemented via issuance of - Production Tax Credit1 Renewable Obligation Certificates (ROC) - Renewable Energy Certificate (REC) (driven by state-level Renewabl

  81. Slide 81: Current regulatory regimes and frameworks

    Current regulatory regimes and frameworks Renewables Germany Italy Offshore Onshore  Support regime: Feed in tariff (FIT) with direct marketing obligation until  Support regime: Assets with COD until 2013: Feed in premium (FIP) to 2016. Since 2017 central auction system in form of 20 year Contract

  82. Slide 82: Current regulatory regimes and frameworks

    Current regulatory regimes and frameworks Renewables Sweden Denmark Poland Onshore/ Offshore Denmark Offshore Onshore  Support regime: Green certificates  Support regime: Contract for difference  Support regime: Green certificates until  Remuneration: (CfD), whereby CfD strike price is derived 2

  83. Slide 83: Accounting treatment of renewable assets in E.ON financial statements

    Accounting treatment of renewable assets Renewables in E.ON financial statements1 Model 1 Model 2 Model 3a Model 3b Model 4 (full consolidation) (full consolidation) (at equity consolidation) (pro rata consolidation) (At costs consolidation) E.ON share of project 100% >50% < 100% = < 50% = < 50% n/a

  84. Slide 84: Content

    Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  85. Slide 85: PreussenElektra

    PreussenElektra PreussenElektra What we do Active and operated by PreussenElektra Active and minority share PreussenElektra Brunsbüttel  PreussenElektra covers our nuclear generation activities in Shut down Brokdorf Germany Decommissioning Stade Krümmel  The German nuclear exit, which was decided

  86. Slide 86: Financials and nuclear power sales

    Financials and nuclear power sales PreussenElektra Financials Nuclear power sales (TWh) €m 2016 2017 2016 2017 Revenues 1.538 1.585 Owned generation (Accounting view) 32,4 27,5 Adjusted EBITDA 1 644 654 Purchases 4,3 9,9 Adjusted EBIT1 553 506 thereof jointly owned power plants (E.ON has minority in

  87. Slide 87: Decommissioning (1)

    Decommissioning (1) PreussenElektra German nuclear power plants shut down Capacity E.ON share Shut down Start of Current Progress of MW % year decommissioning phase decommissioning E.ON as operator Würgassen 670 100 1995 1997 Decommissioning Stade 640 67 2003 2005 Decommissioning Isar 1 878 100 2011

  88. Slide 88: Decommissioning (2)

    Decommissioning (2) PreussenElektra Decommissioning of a nuclear power plant1 Shut down phases 30-40 10-15 1-3 years 4 years 2 years years years Service operation and dismantling Service operation and dismantling Post operation and (Fuel on site) Site cleaning Power production Decommissioning and (O

  89. Slide 89: Provisions for decommissioning

    Provisions for decommissioning PreussenElektra Schematic illustration of provision building at E.ON1 Provision utilization for German nuclear €m 630 237 Real discount rate: -0.9% t0 t0 t+1 t+2 t+n 2016 2017 Costs for decommissioning Decommissioning provisions Accretion Current cost approach2 used fo

  90. Slide 90: Content

    Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  91. Slide 91: Relevant at equity participations of E.ON

    Relevant at equity participations of E.ON E.ON share1 At equity contribution Company Description % to E.ON result 2017 (€m) Energy Networks Germany Städtische Werke Magdeburg GmbH & Co. KG Municipal utility (energy, water) in the city of Magdeburg 26,7 17,1 Energie und Wasser Potsdam GmbH Municipal

  92. Slide 92: Content

    Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 43 4. Renewables 58 5. PreussenElektra 84 6. Other 90 7. Financials 92

  93. Slide 93: E.ON Quarterly Financials – P&L

    E.ON Quarterly Financials – P&L 1 €m Q1 2016 Q2 2016 H1 2016 Q3 2016 9M 2016 Q4 2016 FY 2016 Sales 11.271 8.983 20.254 7.944 28.198 9.975 38.173 2 Adjusted EBITDA 2.012 889 2.901 739 3.640 1.299 4.939 Depreciation/amortization recognized in Adjusted EBIT -441 -459 -900 -429 -1.329 -498 -1.827 2 Adju

  94. Slide 94: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs Sales 1 €m Q1 2016 Q2 2016 H1 2016 Q3 2016 9M 2016 Q4 2016 FY 2016 Energy Networks 4.181 4.141 8.322 3.885 12.207 3.685 15.892 Germany 3.458 3.544 7.002 3.286 10.288 2.917 13.205 Sweden 276 233 509 227 736 293 1.029 CEE & Turkey 447 364 811 372 1.183 475 1.658 Custom

  95. Slide 95: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs Sales €m Q1 2017 Q2 2017 H1 2017 Q3 2017 9M 2017 Q4 2017 FY 2017 Energy Networks 4.199 4.428 8.627 4.240 12.867 4.123 16.990 Germany 3.426 3.782 7.208 3.589 10.797 3.402 14.199 Sweden 298 265 563 268 831 241 1.072 CEE & Turkey 475 381 856 383 1.239 480 1.719 Customer

  96. Slide 96: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs Adjusted EBITDA2 1 €m Q1 2016 Q2 2016 H1 2016 Q3 2016 9M 2016 Q4 2016 FY 2016 Energy Networks 805 553 1.358 565 1.923 756 2.679 Germany 492 301 793 291 1.084 423 1.507 Sweden 154 125 279 132 411 151 562 CEE & Turkey 159 127 286 142 428 182 610 Customer Solutions 662

  97. Slide 97: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs Adjusted EBITDA1 €m Q1 2017 Q2 2017 H1 2017 Q3 2017 9M 2017 Q4 2017 FY 2017 Energy Networks 869 639 1.508 627 2.135 792 2.927 Germany 562 334 896 321 1.217 424 1.641 Sweden 173 147 320 147 467 165 632 CEE & Turkey 134 158 292 159 451 203 654 Customer Solutions 410 19

  98. Slide 98: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs 2 Adjusted EBIT 1 €m Q1 2016 Q2 2016 H1 2016 Q3 2016 9M 2016 Q4 2016 FY 2016 Energy Networks 570 302 872 324 1.196 475 1.671 Germany 348 144 492 146 638 256 894 Sweden 113 84 197 91 288 110 398 CEE & Turkey 109 74 183 87 270 109 379 Customer Solutions 588 71 659 -111

  99. Slide 99: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs Adjusted EBIT1 €m Q1 2017 Q2 2017 H1 2017 Q3 2017 9M 2017 Q4 2017 FY 2017 Energy Networks 630 396 1.026 391 1.417 524 1.941 Germany 418 188 606 182 788 262 1.050 Sweden 132 107 239 106 345 129 474 CEE & Turkey 80 101 181 103 284 133 417 Customer Solutions 330 119 449

  100. Slide 100: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs OCFbIT 1 €m Q1 2016 Q2 2016 H1 2016 Q3 2016 9M 2016 Q4 2016 FY 2016 Energy Networks 567 942 1.509 1.092 2.601 168 2.768 Germany 308 621 929 880 1.809 -221 1.588 Sweden 122 156 278 120 398 177 575 CEE & Turkey 137 165 302 92 394 211 605 Customer Solutions 119 430 549

  101. Slide 101: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs OCFbIT €m Q1 2017 Q2 2017 H1 2017 Q3 2017 9M 2017 Q4 2017 FY 2017 Energy Networks 1.016 722 1.738 1.235 2.973 723 3.696 Germany 722 392 1.114 992 2.106 345 2.451 Sweden 142 163 305 138 443 197 640 CEE & Turkey 152 167 319 105 424 181 605 Customer Solutions -155 586 4

  102. Slide 102: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs Investments (cash-effective) €m Q1 20161 Q2 2016 H1 2016 Q3 2016 9M 2016 Q4 2016 FY 2016 Energy Networks 195 338 534 332 866 553 1.419 Germany 118 185 303 214 517 329 846 Sweden 43 71 114 66 180 111 291 CEE & Turkey 34 83 117 52 169 113 282 Customer Solutions 107 143

  103. Slide 103: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs Investments (cash-effective) €m Q1 2017 Q2 2017 H1 2017 Q3 2017 9M 2017 Q4 2017 FY 2017 Energy Networks 260 285 545 319 864 554 1.418 Germany 98 133 231 165 396 306 702 Sweden 60 87 147 81 228 117 345 CEE & Turkey 102 65 167 73 240 131 371 Customer Solutions 64 145 2

  104. Slide 104: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs At equity contribution to Adjusted EBITDA/EBIT 1 €m Q1 2016 Q2 2016 H1 2016 Q3 2016 9M 2016 Q4 2016 FY 2016 Energy Networks 40 38 78 23 101 28 129 Germany 10 22 32 22 54 12 66 Sweden 0 0 0 0 0 0 0 CEE & Turkey 30 16 46 1 47 16 63 Customer Solutions 4 1 5 3 8 2 10 Ger

  105. Slide 105: E.ON Quarterly Financials – KPIs

    E.ON Quarterly Financials – KPIs At equity contribution to Adjusted EBITDA/EBIT €m Q1 2017 Q2 2017 H1 2017 Q3 2017 9M 2017 Q4 2017 FY 2017 Energy Networks -13 36 23 30 53 65 118 Germany 16 25 41 19 60 14 74 Sweden 0 0 0 0 0 0 0 CEE & Turkey -29 11 -18 11 -7 51 44 Customer Solutions 3 4 7 4 11 3 14 G

  106. Slide 106: Disclaimer

    Disclaimer This presentation contains information relating to E.ON Group ("E.ON") that must not be relied upon for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. By accessing this document you agree

E.ON — Investor Presentation (2018) on 6ix