E.on Se · XETR:EOAN
E.on — Non-Deal Roadshow (October 2007)
26 slides from E.on's roadshow presentation, Oct 30, 2007
Slide 1: Power Generation Roadshow
Power Generation Roadshow Frankfurt am Main, October 30st, 2007 London, October 31st, 2007
Slide 2: Content
Content 1. E.ON’s Generation Portfolio Strategy 2. Outlook for Nuclear New Builds in the EU 3. Clean Fossil Generation 4. Summary Investors Roadshow October 2007 2
Slide 3: Uncertainties require adequate portfolio approach
Uncertainties require adequate portfolio approach E.ON’s strategy targets on a diversified generation portfolio Ö Combination of different fuels and technologies Ö Coverage of different geographical regions and countries E.ON’s competence delivers key requirements for an efficient portfolio Ö Unders
Slide 4: Acquisitions and new build program will deliver E.ON's carbon target
Acquisitions and new build program will deliver E.ON‘s carbon target of 360 g CO2/kWh by 2030. E.ON‘s portfolio 2007 E.ON‘s portfolio 20151 E.ON‘s target portfolio (51 GW) (~90 GW) 2030 50 % low carbon fossil 38% 42% (gas + coal CCS) 29% 30% 50 % 8% carbon 22% 10% 13% 7% free 1% Nuclear Coal Gas Hyd
Slide 5: E.ON's portfolio is well diversified across regional markets
In Europe, E.ON's portfolio is well diversified across regional markets E.ON market share generation 20151 E.ON has the most internationally diversified generation portfolio > 20 % 10 - 20 % y Diversified country portfolio offers < 10 % optimized risk balance 0% y International presence offers excel
Slide 6: The generation market delivers growth options
The generation market delivers growth options Accumulated additional capacity in Central Europe 250 Central Europe West 200 Central Europe East 150 [GW] 100 50 0 Green World Global Green World Global Green World Global Growth Growth Growth 2010 2020 2030 Source: E.ON Investors Roadshow October 2007
Slide 7: Neither coal nor gas showed clear cost advantages in the past
Neither coal nor gas showed clear cost advantages in the past - volatile fuel prices are expected to persist in the future New entry costs mid-load (4,000h/a)1 New entry costs base load (7,500h/a) 1 90 Hard Coal 80 Hard Coal CCGT 70 CCGT 80 Euro/MWh Euro/MWh 70 60 60 50 50 40 40 30 30 20 1975 1980 1
Slide 8: Qualitative comparison of long term new entry costs for baseload
Qualitative comparison of long term new entry costs for baseload (7,500h/a) Low costs case High costs case 60 - 70 €/MWh 50 - 60 €/MWh 40 - 50 €/MWh 35 - 45 €/MWh CO2 Fuel Costs Fixed Costs Invest Costs Hard Coal CCGT Hard Coal CCGT It is uncertain which generation technology will be most competitiv
Slide 9: E.ON's scenarios for the European power market
E.ON‘s scenarios for the European power market Green world Global growth Highest carbon reduction target and High global economic growth rates; very high share of renewables; high efforts in fuel prices; high growth in electricity demand; saving energy; very high carbon prices; carbon prices mid (mo
Slide 10: Expected economics of different generation technologies under different market scenarios
Expected economics of different generation technologies under different market scenarios Coal CCGT Nuclear Renewables Stepwise Auctioning ++ + ++ + Global Gas Markets - ++ o o Global Growth ++ -- ++ o Green World ++ (with CCS) o ++ ++ Investors Roadshow October 2007 10
Slide 11: Generation investments assessed on basis of different scenarios and portfolio considerations
Generation investments assessed on basis of different scenarios and portfolio considerations Different scenarios reproduce uncertainties Uncertain development of fuel and carbon prices as well as political constraints result in broad bandwidth of input parameter. Uncertainties require diversificatio
Slide 12: Value creation through group wide competence centers
Value creation through group wide competence centers New Build Unit (NBU) Centre of Competence (CoC) Engineering Realization of new-build for Group-wide fuel-specific Utilization of broad all fossil plants in Europe competence centers engineering know-how for plant management across E.ON group y Syn
Slide 13: Content
Content 1. E.ON’s Generation Portfolio Strategy 2. Outlook for Nuclear New Builds in the EU 3. Clean Fossil Generation 4. Summary Investors Roadshow October 2007 13
Slide 14: New build nuclear in Europe is expected in two waves
New build nuclear in Europe is expected in two waves commissioning before 2020 commissioning after 2020 BE CH D DK FIN FIN 5 FIN 6 F Flamanville I NL Borsselle II Iberia SWE UK UK-Replacement BG Belene CZ Temelin 3/4 HN Paks V & VI PO RO Cernavoda Bohunice SK Mochovce SL Baltic Ignalina Russia under
Slide 15: High long-term new build potential in the European market
High long-term new build potential in the European market Estimation of new build nuclear projects in Europe until 2030 Number of projects 15-20 30 - 45 40 - 60 70 60 50 40 Western approx. approx. 30 5 – 40 10 – 50 market 20 approx. 5-7 approx. 7 – 8 10 approx. Eastern approx. 8-10 10 – 18 market 0
Slide 16: Nuclear power plants – also part of a low carbon future
Nuclear power plants – also part of a low carbon future Today Tomorrow After tomorrow Generation II Generation III Generation IV y CO2 free electricity generation y Innovative, inherently safe design y International collaboration y Improvements for safety and y Increased efficiency at 1.600 MWel of
Slide 17: E.ON nuclear project development activities
E.ON nuclear project development activities UK Pre-licensing activities, sites assessment and participation in government- led consultation Finland Competing as part of one of the two pre-selected consortia for appointment as selected developer and operator of Finland 6 CEE Project pre-development a
Slide 18: Content
Content 1. E.ON’s Generation Portfolio Strategy 2. Outlook for Nuclear New Builds in the EU 3. Clean Fossil Generation 4. Summary Investors Roadshow October 2007 18
Slide 19: Development of efficiency in coal fired PP in Germany
Development of efficiency in coal fired PP in Germany CCS makes 55% efficiency improvement Austenites even more important 50% (290 bar, 600°C) Net efficiency Ferrites and Martensites 45% (260 bar, 545°C) CCS 40% Efficiency Penalty 35% 30% 1950 1970 1990 2010 2030 Start-up Investors Roadshow October
Slide 20: E.ON takes its role in power plant technology
E.ON takes its role in power plant technology - 700 °C Technology enables competitiveness Location Germany of post combustion capture Efficiency 50 % - „Capture Readiness“ Capacity > 500 MWel will be considered (all future E.ON installations Investment > 1000 Mio. € will be capture ready) Start of o
Slide 21: E.ON ensures capture readiness for all coal based new built power plants
E.ON ensures capture readiness for all coal based c ap new built power plants tur e rea dy Capture readiness = technical feasibility of future CCS retrofit Systems Infrastructure CO2 transport and storage y Arrange components to y Assign space for future y Detailed concept for allow later upgrade re
Slide 22: CO2 capture in fossil power plants – Three different technologies
CO2 capture in fossil power plants – Three different technologies in development stage 1. Pre -combustion capture (IGCC) Coal gasification, CO-shift, hydrogen production and hydrogen combustion in a H2 gas turbine FutureGen 2. Oxyfuel Burning fossil fuels with pure oxygen 3. Post -combustion capture
Slide 23: CO2 avoidance costs of the main technologies
CO2 avoidance costs of the main technologies Goal of Zero Emission Platform by 2020 Potential Today’s forecast 2020 Pre-combustion capture IGCC with CO shift und CO2 scrubbing Oxyfuel USC with cryogenic air separation Post-combustion capture 2) 1) MEA scrubbing1) and alternative processes2) 0 10 20
Slide 24: Content
Content 1. E.ON’s Generation Portfolio Strategy 2. Outlook for Nuclear New Builds in the EU 3. Clean Fossil Generation 4. Summary Investors Roadshow October 2007 Seite 24
Slide 25: Summary
Summary y E.ON is the only company on top in each generation technology y The broad fuel mix and internationally diversified generation portfolio deliver competitive advantages for E.ON y Acquisitions and organic growth will further improve E.ON’s diversification y E.ON’s generation portfolio is rob
Slide 26: Forward-looking statements disclaimer
This document may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or pe