E.on Se · XETR:EOAN

E.on — 9M 2015 Earnings Presentation

28 slides from E.on's earnings presentation, Nov 11, 2015

  1. Slide 1: 2015 nine months results

    2015 nine months results 11 November 2015

  2. Slide 2: Summary

    Summary Business environment Third quarter eventful, but outlook confirmed Coal/oil - stabilizing at low levels  Outlook (fully confirmed): EBITDA (€7.0 – 7.6bn) and underlying net income (€1.4 – 1.8bn) outlook ranges confirmed as well as fixed dividend commitment at 0.5€/share  Earnings: EBITDA (

  3. Slide 3: E.ON nuclear provisions

    E.ON nuclear provisions E.ON nuclear provision key figures Key messages Post op.; decom.  E.ON‘s nuclear provisions are  Correctly derived Interim storage  In line with IFRS standards Transport, containers, conditioning  Based on consistent set of key Storage Konrad parameters Highly radioactive

  4. Slide 4: EBITDA development

    EBITDA development First nine months 2015 (in €bn) 9M 2014 6.5 New capacities 0.1 Region Germany 0.2 Power portfolio -0.5 -1.2 E&P -0.2 Disposals -0.3 Other -0.4 9M 2015 5.4 Earnings trends in main effects continued, first positive impacts of capacity additions feeding through 3

  5. Slide 5: Underlying net income

    Underlying net income 9M 9M €m % YoY YoY 2014 2015 EBITDA 1 6,528 5,361 -18 -1,167 Depreciation/amortization recognized in EBIT 1 -2,682 -2,437 - - EBIT 1 3,846 2,924 -24 -922 Economic interest expense (net) -1,255 -1,127 - - EBT 1 2,591 1,797 -31 -794 Income taxes on EBT 1 -971 -602 - - % of EBT 1

  6. Slide 6: Operating cash flow reconciliation

    Operating cash flow reconciliation First nine months 2015 (in €bn) EBITDA 1 5.4 Non-cash effective EBITDA items +1.6 Cash-effective EBITDA 7.0 CCR Provision utilization -2.3 107% Working capital 1.6 movements Tax, interest & other -0.5 2 OCF after interest and tax 5.7 Strong cash conversion supporte

  7. Slide 7: Economic net debt development

    Economic net debt development First nine months 2015 (in €bn) END END Provisions NFP 2014 OCF CAPEX B&S Dividend Divest Pensions Others 2015 NFP Provisions Pensions Pensions: -5.6 bn -4.6 bn ARO: ARO: -19.0 bn -18.6 bn Cash Balance: 2.3 bn -23.2 -24.6 5.7 1.0 2.4 0.1 -0.5 -28.1 -5.0 -2.7 -0.9 -8.8 -

  8. Slide 8: 2015 outlook - confirmed

    2015 outlook - confirmed EBITDA1 Underlying net income1 €8.4bn €7.0-7.6bn €1.6bn €1.4-1.8bn 2014A 2015E 2014A 2015E 7 1. Adjusted for extraordinary effects

  9. Slide 9: Backup

    Backup 8

  10. Slide 10: Financial highlights

    Financial highlights €m 9M 2014 9M 2015 % YoY Sales 80,538 84,301 5 1 EBITDA 6,528 5,361 -18 1 EBIT 3,846 2,924 -24 1 Underlying net income 1,373 962 -30 3 Operating cash flow 7,439 5,741 -23 Investments 3,110 2,659 -15 2 Economic net debt -33,394 -28,123 -16 1. Adjusted for extraordinary effects 2.

  11. Slide 11: EBITDA and EBIT by unit

    EBITDA and EBIT by unit €m EBITDA 1 EBIT 1 9M 2014 9M 2015 % YoY 9M 2014 9M 2015 % YoY Generation 1,553 1,057 -32 843 522 -38 Renewables 1,107 923 -17 764 628 -18 Global Commodities 444 259 -42 373 181 -52 Exploration & Production 942 714 -24 459 222 -52 Germany 1,257 1,428 14 787 982 25 Other EU Co

  12. Slide 12: From EBITDA to net income

    From EBITDA to net income 1 EBITDA 6,528 5,361 -18 Depreciation/Amortization/Impairments -2,682 -2,437 - 1 EBIT 3,846 2,924 -24 Economic interest expense (net) -1,255 -1,127 Net book gains 310 377 Restructuring -342 -324 Mark-to-market valuation of derivatives -347 232 Impairments (net) -701 -8,177

  13. Slide 13: Generation

    Generation 1 1 €m EBITDA EBIT 9M 2014 9M 2015 % YoY 9M 2014 9M 2015 % YoY Nuclear 901 686 -24 697 450 -35 Steam 456 378 -17 153 113 -26 CCGT 218 -27 - 20 -110 - Other/Consolidation -22 20 - -27 69 - Total 1,553 1,057 -32 843 522 -38 Main EBITDA effects (in €bn) Nuclear (-0.2)  Driven by lower volum

  14. Slide 14: Renewables

    Renewables 1 1 €m EBITDA EBIT 9M 2014 9M 2015 % YoY 9M 2014 9M 2015 % YoY Hydro 534 423 -21 442 383 -13 Wind/Solar/Other 573 500 -13 322 245 -24 Total 1,107 923 -17 764 628 -18 Main EBITDA effects (in €bn) Hydro (-0.1)  Lower prices in all markets (-0.1)  Disposal of Spanish hydro business effecti

  15. Slide 15: Global Commodities

    Global Commodities 1 1 €m EBITDA EBIT 9M 2014 9M 2015 % YoY 9M 2014 9M 2015 % YoY Coal/Oil/Freight/LNG 36 21 -42 36 21 -42 Power and Gas 305 127 -58 238 53 -78 Infrastructure/Other 103 111 8 99 107 8 Total 444 259 -42 373 181 -52 Main EBITDA effects (in €bn) Power and Gas (-0.2)  Mainly driven by i

  16. Slide 16: Exploration & Production

    Exploration & Production 1 1 €m EBITDA EBIT 9M 2014 9M 2015 % YoY 9M 2014 9M 2015 % YoY Total 942 714 -24 459 222 -52 Main EBITDA effects (in €bn) North Sea fields (-0.2)  Lower margins due to falling oil and gas prices partly compensated by FX effects (-0.2) Yushno Russkoje (-0.1)  Reduction main

  17. Slide 17: Germany

    Germany 1 1 €m EBITDA EBIT 9M 2014 9M 2015 % YoY 9M 2014 9M 2015 % YoY Distribution 1,118 1,159 4 700 758 8 Non-regulated/Other 139 269 94 87 224 157 Total 1,257 1,428 14 787 982 25 Main EBITDA effects (in €bn) Distribution Networks (+/-0)  Improvement also due to higher volumes based on weather no

  18. Slide 18: Other EU Countries

    Other EU Countries 1 1 €m EBITDA EBIT 9M 2014 9M 2015 % YoY 9M 2014 9M 2015 % YoY Distribution 716 770 8 446 496 11 Sales 317 310 -2 242 223 -8 Other/Consolidation 193 168 -12 89 57 -37 Total 1,226 1,248 2 777 776 -0 Main EBITDA effects (in €bn) Distribution Networks (+0.1)  Mainly higher tariffs i

  19. Slide 19: Non-EU Countries

    Non-EU Countries 1 1 €m EBITDA EBIT 9M 2014 9M 2015 % YoY 9M 2014 9M 2015 % YoY Russia 401 215 -46 288 149 -48 (in Mio Ruble) 19,272 14,325 -26 13,860 9,914 -28 Other Non-EU countries -62 -32 - -62 -33 - Total 339 183 -46 226 116 -49 Main EBITDA effects (in €bn) Russia (-0.2)  Mainly due to negativ

  20. Slide 20: Cash effective investments by unit

    Cash effective investments by unit €m 9M 2014 9M 2015 % YoY Generation 549 435 -21 Renewables 854 826 -3 Global Commodities 95 86 -9 Exploration & Production 55 86 56 Germany 400 469 17 Other EU Countries 535 575 7 Non-EU Countries 616 130 -79 Group Management / 6 52 767 Consolidation Investments 3,

  21. Slide 21: Economic net debt

    Economic net debt €m 31 Dec 2014 30 Sep 2015 Liquid funds 6,067 7,728 Non-current securities 4,781 4,837 Financial liabilities -19,667 -17,785 1 Adjustment FX hedging 34 261 Net financial position -8,785 -4,959 Provisions for pensions -5,574 -4,578 2 Asset retirement obligations -19,035 -18,586 Econ

  22. Slide 22: Financial liabilities of the E.ON Group

    Financial liabilities of the E.ON Group End of Q3 2015 in € billion Maturity profile (as of end of Q3 2015)2 30 Sep 2015 31 Dec 2014 Bonds 13.6 14.3 in EUR 6.0 7.1 in GBP 4.6 4.4 6,0 in USD 2.7 2.5 5,0 4,0 in CHF 0.0 0.0 3,0 in SEK 0.0 0.0 2,0 in JPY 0.2 0.2 1,0 0,0 other currencies 0.2 0.1 2015 201

  23. Slide 23: Economic interest expense (net)

    Economic interest expense (net) Difference €m 9M 2014 9M 2015 (in €m) Interest from financial assets/liabilities -594 -574 +20 Interest cost from provisions for pensions and similar provisions -76 -87 -11 Accretion of provisions for retirement obligation and other provisions -744 -655 +89 Capitalize

  24. Slide 24: E&P - Oil & Gas production

    E&P - Oil & Gas production m boe 9M 2014 9M 2015 % YoY Skarv 11.4 10.3 -9 Njord/Hyme 1.3 3.7 184 Elgin-Franklin 0.6 1.2 84 Babbage 1.1 0.9 -13 Huntington 1.1 1.0 -14 Rita 0.6 0.3 -56 Total North Sea 17.4 18.1 4 Yuzhno Russkoje 27.1 27.2 0 Total 44.5 45.3 2 23

  25. Slide 25: Outright hedging (Central Europe & Nordic)

    Outright hedging (Central Europe & Nordic) €/MWh ~49 2015 ~36 ~39 2016 ~33 ~33 2017 ~28 0% 20% 40% 60% 80% 100% Central Europe Nordic 24

  26. Slide 26: E.ON Investor Relations Contact

    E.ON Investor Relations Contact Anke Groth Head of IR T+49 (211) 45 79 345 [email protected] Marc Koebernick Germany & Switzerland T +49 (211) 45 79 239 US [email protected] Dr. Stephan Schönefuß UK T +49 (211) 45 79 4808 Germany [email protected] Oliver Röder Russia T +49 (211) 45

  27. Slide 27: Reporting calendar & important links

    Reporting calendar & important links Reporting calendar March 9, 2016 Annual Report 2015 May 11, 2016 Interim Report I: January – March 2016 June 8, 2016 2016 Annual Shareholders Meeting Important links Capital Market Story http://www.eon.com/en/investors/presentations/capital-market-story.html Othe

  28. Slide 28: Disclaimer

    Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between

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