E.on Se · XETR:EOAN

E.on — 9M 2014 Earnings Presentation

27 slides from E.on's earnings presentation, Nov 12, 2014

  1. Slide 1: 2014 first nine months results

    2014 first nine months results 12 November 2014

  2. Slide 2: Summary

    Summary EBITDA 1 Outlook €7,128m 2 €6,637m €9.4bn 2 €8.0-8.6bn 9M 2013 9M 2014 FY 2013A FY 2014E Underlying net income 1 Outlook €1,901m 2 €1,435m €2.2bn 2 €1.5-1.9bn 9M 2013 9M 2014 FY 2013A FY 2014E 1. Adjusted for extraordinary effects 1 2. Including pro forma adjustment regarding IFRS 10/11

  3. Slide 3: First nine months 2014 EBITDA development

    First nine months 2014 EBITDA development 1,2 €bn 9M 2013 7.1 E&P 0.3 E.ON 2.0 0.3 Renewables (EC&R) 0.1 Nuclear fuel tax 0.2 Disposals -0.5 FX effects -0.2 German regulation -0.2 Region Czechia -0.2 Power price and volume effect -0.2 Gas optimization 0.0 Other -0.1 9M 2014 6.6 1. Adjusted for extra

  4. Slide 4: First nine months 2014 underlying net income

    First nine months 2014 underlying net income €m 9M 2013 1 9M 2014 % YoY EBITDA 2 7,128 6,637 -7 Depreciation/amortization recognized in EBIT 2 -2,673 -2,725 - EBIT 2 4,455 3,912 -12 Economic interest expense (net) -1,345 -1,256 - EBT 2 3,110 2,656 -15 Income taxes on EBT 2 -880 -971 - % of EBT 2 28

  5. Slide 5: First nine months 2014 EBITDA – OCF Reconciliation

    First nine months 2014 EBITDA1 – OCF Reconciliation €bn EBITDA 1 6.6 Non-cash effective EBITDA items +1.7 Cash-effective EBITDA 8.3 Provision utilization -2.2 Working capital +2.6 movements Tax, interest & other -1.2 OCF after interest and tax 7.5 1. Adjusted for extraordinary effects 4

  6. Slide 6: First nine months 2014 economic net debt development

    First nine months 2014 economic net debt development €bn December 31, 2013 -21.7 -10.5 -32.2 1 Dividends -1.0 Investments -3.1 Net financial position Provisions and other Other -2.3 Pension obligations -1.5 Divestments +1.6 Operating cash flow +7.5 September 30, 2014 -23.4 -7.6 -31.0 1. Figures as o

  7. Slide 7: 2014 outlook

    2014 outlook €bn 2013A 1 2014E EBITDA 2 9.4 8.0 – 8.6 Depreciation 3.6  Economic interest expense 1.9  Taxes 1.2  Minorities 0.4  Underlying net income 2 2.2 1.5 – 1.9 1. Including pro forma adjustment regarding IFRS 10/11 6 2. Adjusted for extraordinary effects

  8. Slide 8: Backup

    Backup 7

  9. Slide 9: First nine months 2014 financial highlights

    First nine months 2014 financial highlights €m 9M 2013 1 9M 2014 % YoY Sales 89,328 81,348 -9 EBITDA 2 7,128 6,637 -7 EBIT 2 4,455 3,912 -12 Underlying net income 2 1,901 1,435 -25 Operating cash flow 5,341 7,537 +41 Investments 6,323 3,144 -50 Economic net debt -32,218 3 -31,009 +1,209 4 1. Includi

  10. Slide 10: First nine months 2014 EBITDA and EBIT by unit

    First nine months 2014 EBITDA and EBIT by unit €m EBITDA 1 EBIT 1 9M 2013 2 9M 2014 % YoY 9M 2013 2 9M 2014 % YoY Generation 1,032 1,553 +50 352 843 +139 Renewables 1,035 1,107 +7 703 764 +9 Global Commodities 820 394 -52 734 323 -56 Exploration & Production 748 942 +26 377 459 +22 Germany 1,797 1,3

  11. Slide 11: From EBITDA to net income

    From EBITDA to net income 9M 2013 2 9M 2014 % YoY EBITDA 1 7,128 6,637 -7 Depreciation/Amortization/Impairments -2,673 -2,725 - EBIT 1 4,455 3,912 -12 Economic interest expense (net) -1,345 -1,256 - Net book gains 1,846 310 - Restructuring and cost-management expenses -302 -342 - Mark-to-market valu

  12. Slide 12: Generation

    Generation €m EBITDA 1 EBIT 1 9M 2013 2 9M 2014 % YoY 9M 2013 2 9M 2014 % YoY Nuclear 647 901 39 448 697 56 Steam 388 470 21 121 172 42 CCGT 67 218 - -143 20 - Other/Consolidation -72 -36 - -74 -46 - Total 1.032 1.553 50 352 843 139 Main EBITDA effects (in €bn) Nuclear (+0.3)  Lower nuclear tax pay

  13. Slide 13: Renewables

    Renewables €m EBITDA 1 EBIT 1 9M 2013 2 9M 2014 % YoY 9M 2013 2 9M 2014 % YoY Hydro 554 534 -4 462 442 -4 Wind/Solar/Other 481 573 +19 241 322 +34 Total 1,035 1,107 +7 703 764 +9 Main EBITDA effects (in €bn) Hydro (+/-0)  Reduced volumes in Germany due to lower water inflow and last year’s disposal

  14. Slide 14: Global Commodities

    Global Commodities €m EBITDA 1 EBIT 1 9M 2013 2 9M 2014 % YoY 9M 2013 2 9M 2014 % YoY Coal/Oil/Freight/LNG 2 36 - 2 36 - Power and Gas 756 255 -66 683 188 -72 Infrastructure/Other 62 103 +66 49 99 +102 Total 820 394 -52 734 323 -56 Main EBITDA effects (in €bn) Power and Gas (-0.5)  Prior year’s dis

  15. Slide 15: Exploration & Production

    Exploration & Production €m EBITDA 1 EBIT 1 9M 2013 9M 2014 % YoY 9M 2013 9M 2014 % YoY Total 748 942 +26 377 459 +22 Main EBITDA effects (in €bn) North Sea fields (+0.3)  Higher volumes mainly driven by Skarv moving to plateau production (+0.4)  Negative currency impact (-0,1) Yushno Russkoje (-0

  16. Slide 16: Germany

    Germany €m EBITDA 1 EBIT 1 9M 2013 2 9M 2014 % YoY 9M 2013 2 9M 2014 % YoY Distribution 1,462 1,118 -24 984 700 -29 Non-regulated/Other 335 189 -44 278 137 -51 Total 1,797 1,307 -27 1,262 837 -34 Main EBITDA effects (in €bn) Distribution Networks (-0.3)  Prior year’s disposal of three regional util

  17. Slide 17: Other EU Countries

    Other EU Countries €m EBITDA 1 EBIT 1 9M 2013 2 9M 2014 % YoY 9M 2013 2 9M 2014 % YoY Distribution 1,050 824 -22 743 515 -31 Sales 396 317 -20 336 239 -29 Other/Consolidation 286 195 -32 194 90 -54 Total 1,732 1,336 -23 1,273 844 -34 Main EBITDA effects (in €bn) Distribution Networks (-0.2)  Mainly

  18. Slide 18: Non-EU Countries

    Non-EU Countries €m EBITDA 1 EBIT 1 9M 2013 9M 2014 % YoY 9M 2013 9M 2014 % YoY Russia 495 401 -19 346 288 -17 (in Mio Ruble) (20,622) (19,272) (-7) (14,419) (13,860) (-4) Other Non-EU -81 -62 - -81 -62 - countries Total 414 339 -18 265 226 -15 Main EBITDA effects (in €bn) Russia (-0.1)  Currency t

  19. Slide 19: Cash effective investments by unit

    Cash effective investments by unit €m 9M 20131 9M 2014 % YoY Generation 622 549 -12 Renewables 545 854 +57 Global Commodities 113 95 -16 Exploration & Production 351 55 -84 Germany 651 400 -39 Other EU Countries 591 569 -4 Non-EU Countries 3,404 616 -82 Group Management / Consolidation 46 6 -87 Inve

  20. Slide 20: Economic net debt

    Economic net debt €m 31 Dec 20133 30 Sep 2014 Liquid funds 7,814 6,416 Non-current securities 4,444 5,014 Financial liabilities -22,724 -18,941 Adjustment FX hedging 1 -46 -99 Net financial position -10,512 -7,610 Provisions for pensions -3,418 -4,869 Asset retirement obligations 2 -18,288 -18,530 E

  21. Slide 21: Strong liquidity and well-balanced maturity profile

    Strong liquidity and well-balanced maturity profile Liquidity and financial flexibility Maturity Profile Revolving €bn, as of 30 Sep 2014 1 credit facility (undrawn) 4 €5bn Liquid funds 3 & non-current securities €11.4bn €0.2bn €1.4bn €1.4bn 2 Liquidity 2014 2015 2016 1 Bond & promissory notes matur

  22. Slide 22: Economic interest expense (net)

    Economic interest expense (net) Difference €m 9M 2013 3 9M 2014 (in €m) Interest from financial assets/liabilities -702 -593 +109 Interest cost from provisions for pensions and similar provisions -114 -78 +36 Accretion of provisions for retirement obligation and other provisions -688 -744 -56 Capita

  23. Slide 23: E&P - Oil & Gas production

    E&P - Oil & Gas production m boe 9M 2013 9M 2014 % YoY Skarv 7.0 11.4 +63 % Njord/Hyme 2.4 1.3 -46 % Elgin-Franklin 0.4 0.6 +65 % Babbage 0.5 1.1 +102 % Huntington 0.4 1.1 +188 % Rita 0.0 0.6 - Total North Sea 11.9 17.4 +46 % Yuzhno Russkoje 27.1 27.1 0% Total 39.1 44.5 +14 % 22

  24. Slide 24: Outright hedging (Central Europe & Nordic)

    Outright hedging (Central Europe & Nordic) €/MWh ~56 2014 ~42 ~48 2015 ~38 ~38 2016 ~32 0% 20% 40% 60% 80% 100% Central Europe Nordic 23

  25. Slide 25: E.ON Investor Relations Contact

    E.ON Investor Relations Contact Dr. Marc Spieker Head of IR T+49 2 11-45 79-3 45 [email protected] Peter Blankenhorn Regions / Sales T +49 2 11-45 79-4 81 SRI, Retail [email protected] François Poullet Generation T +49 2 11-45 79-3 32 E&P [email protected] Marc Koebernick Renewable

  26. Slide 26: Reporting calendar & important links

    Reporting calendar & important links Reporting calendar March 11, 2015 Annual Report 2014 May 7, 2015 Interim Report I: January – March 2015 May 7, 2015 2015 Annual Shareholders Meeting August 12, 2015 Interim Report II: January – June 2015 November 11, 2015 Interim Report III: January – September 2

  27. Slide 27: 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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