E.on Se · XETR:EOAN
E.on — Investor Day (September 2004)
17 slides from E.on's investor day presentation, Sep 6, 2004
Slide 1: Capital Market Day
Capital Market Day Munich, September 6, 2004
Slide 2: New Energy for Central Europe: Our Growth Strategy
New Energy for Central Europe: Our Growth Strategy Dr. Walter Hohlefelder Member of the Board of E.ON Energie AG
Slide 3: Agenda
Agenda Growth potential of E.ON Energie Development and growth of E.ON Energie in Central Europe East Success factors of E.ON Energie Envisaged future development Conclusions Page 3
Slide 4: Agenda
Agenda Growth potential of E.ON Energie Development and growth of E.ON Energie in Central Europe East Success factors of E.ON Energie Envisaged future development Conclusions Page 4
Slide 5: Growth potential of E.ON Energie
Growth potential of E.ON Energie y Growth mainly achieved through acquisitions NL y Limited further acquisition potential in B PL D Germany due to cartel L restrictions CZ y Clear focus on central SK CH A EU countries and new H EU accession States RO y Additional growth I potential through increased
Slide 6: Concentration on focus regions triggers optimization of acquisition capital
Concentration on focus regions triggers optimization of acquisition capital Synergies and y Physical and economic synergies in adjacent regions advantages of scale y Interconnection advantages and risk limitation through integration of value chain in the regions Terms and conditions y Comparable pol
Slide 7: Criteria for the selection of projects
Criteria for the selection of projects Strategic Criteria Financial Criteria y Market attractiveness y Earnings enhancing in the first full (returns, growth, regulation) year after acquisition y Target attractiveness y Returns exceeding cost of capital (asset quality, market position, three years af
Slide 8: Agenda
Agenda Growth potential of E.ON Energie Development and growth of E.ON Energie in Central Europe East Success factors of E.ON Energie Envisaged future development Conclusions Page 8
Slide 9: Electricity: Through acquisitions and swaps E.ON Energie has achieved a significant consolidated market share
Electricity: Through acquisitions and swaps E.ON Energie has achieved a significant consolidated market share in the region Czech Republic Czech Republic 2000 2004 SCE ZCE VCE SME SME JCE JME JCE JME Slovakia Slovakia E.ON Észak-dunántúli E.ON Tiszántúli Édász Titász Dédász E.ON Dél-dunántúli Hungar
Slide 10: Gas: E.ON Energie well positioned to achieve majority positions and power–gas convergence
Gas: E.ON Energie well positioned to achieve majority positions and power–gas convergence Germany Czech Republic PP Poland ZCP STP JCP1) JMP SPP Slovakia Ukraine (E.ON Ruhrgas) Austria Hungary FŐGÁZ KÖGÁZ Slovenia DDGÁZ Romania E.ON minority Croatia E.ON management lead Serbia 1) Management lead tog
Slide 11: Agenda
Agenda Growth potential of E.ON Energie Development and growth of E.ON Energie in Central Europe East Success factors of E.ON Energie Envisaged future development Conclusions Page 11
Slide 12: E.ON Energie's success factors also applicable in Central Europe East
E.ON Energie's success factors also applicable in Central Europe East PAI – Process Best Practice Decentralized Structure y Conception during y Knowledge exchange y Autonomous M&A process between subsidiaries subsidiaries y Own Board of y Creating transparency y Efficiency gains through Management f
Slide 13: Successful development of the most recent acquisitions
Successful development of the most recent acquisitions y Total effect of all acquisitions was a positive contribution to results from the first year of full consolidation y ROCE of every acquisition was above cost of capital from third year on Hungary y E.ON Édász Earlier than required Slovakia y ZS
Slide 14: Agenda
Agenda Growth potential of E.ON Energie Development and growth of E.ON Energie in Central Europe East Success factors of E.ON Energie Envisaged future development Conclusions Page 14
Slide 15: Envisaged future development
Envisaged future development Increasing the market share in gas and electricity distribution in existing markets y e.g. gas distribution in Hungary Complementary investments to achieve vertical integration y Generation assets in Central Europe East y Acquisition or brown- / greenfield developments y
Slide 16: Agenda
Agenda Growth potential of E.ON Energie Development and growth of E.ON Energie in Central Europe East Success factors of E.ON Energie Envisaged future development Conclusions Page 16
Slide 17: Conclusion
Conclusion E.ON Energie y Extensively involved in Central and Central Europe East y Experienced in transformation and privatization processes CENTRAL - Central Europe East y Ongoing liberalization and integration of electricity and gas markets y Dynamic and powerful process Potential for value-addin