E.on Se · XETR:EOAN
E.on — Investor Presentation (2017)
105 slides from E.on's investor presentation, 2017
Slide 1: Facts & Figures 2017
Facts & Figures 2017 C-or
Slide 2: Content
Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 3: E.ON at a glance
E.ON at a glance Adjusted EBIT1 2016 of € 3.1 bn Key financials 2015 & 20161 Adjusted EBITDA €bn Energy Networks Customer Solutions Renewables 5.8 4.9 Adjusted EBIT €bn 3.6 3.1 € 1.7 bn € 0.8 bn € 0.4 bn Non-core Business Corporate Functions/ Adjusted Net Income €bn (PreussenElektra) Other2 1.1 0.9
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. Photovoltaik 4
Slide 5: Attractive combination of businesses
Attractive combination of businesses Energy Networks Customer Solutions Renewables ~ € 19 bn Regulated Asset Base1 >22 m Customers across Europe >6 GW Renewables capacities Germany € 10.7 bn Germany 6.1 m delivered Sweden € 3.9 bn UK 7.0 m 10 year track record of CEE € 4.4 bn Other EU 9.2 m renewabl
Slide 6: E.ON Management Board
E.ON Management Board Johannes Teyssen Strategy & Corporate Development Leonhard Birnbaum Energy Networks in Regional Units Chief Executive Officer Chief Operating Officer HR, Health/ Safety/ Security & Networks & Renewables Renewables Environment Politics & Regulation Sustainability P
Slide 7: Content
Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 8: Energy Networks
Energy Networks Energy Networks Highlights € 19 bn Regulated Asset Base1 390,000 RES connections Power Gas 1. In general, RABs from different regulatory regimes are not directly comparable due to significant methodical differences. These include for example different regulatory asset lifetimes,
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 energy flows at the voltage level below the TSO1 Power and gas distribution is predominantly a regulated business in our countries of operation We hav
Slide 10: Energy Networks: Financial highlights
Energy Networks: Financial highlights Energy Networks 2015 2016 1 €m Germany Sweden CEE/Turkey Total Germany Sweden CEE/Turkey Total Revenues 12,312 984 1,693 14,989 13,205 1,029 1,658 15,892 2 Adjusted EBITDA 1,686 489 558 2,733 1,507 562 610 2,679 2 Adjusted EBIT 1,129 328 354 1,811 894 398 379 1,
Slide 11: Upcoming regulatory periods
Upcoming regulatory periods Energy Networks Romania 2019 - 20231 Slovakia 2017 - 2021 Power Hungary 2017 - 2020 Czech Republic 2019 - 20231 Sweden 2020-2023 Germany 2019-2023 2016 2017 2018 2019 2020 2021 2022 2023 2024 Germany 2018-2022 Czech Republic 2019 - 20231 Hungary 2017 - 2020 Romania 2018 -
Slide 12: Content
Content 1. Overview 2 2. Energy Networks 7 2.1 Germany 12 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 13: Energy Networks: Germany
Energy Networks: Germany Energy Networks Germany 2015 2016 2015 2016 Grid length Grid conduct 1 Power (tkm) 349 349 Distr. volumes power (TWh) 68 68 Market share (%) 19 19 Distr. volumes gas (TWh) 103 107 1 2 Gas (tkm) 59 58 RAB power & gas (€bn) 10.5 10.7 Market share (%) 13 13 Major shareholdings
Slide 14: 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 RAB ~ 30 % • Maximum period of concession contract is 20 year
Slide 15: 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 (Current period: Power 2014-2018; Gas 2013-2017) Cost audit Cost audit and benchmarking (for OPEX/capital costs) once per
Slide 16: Germany: Regulatory schedule
Germany: Regulatory schedule Energy Networks Power distribution1 - Illustration Commentary 2nd regulatory period 3rd regulatory period 2nd regulatory period: Allowed capital costs of base Reduction of allowed regulatory interest rates in 3rd period year decrease in line with OPEX and regulatory ca
Slide 17: Regulated asset base and return structure
Power Power Gas Gas (Old) (New) (Old) (New) 2. Debt Regulated asset base1 Old assets: Current costs; New assets: Historic costs € 2.2 bn € 2.3 bn € 0.3 bn € 5.1 bn € 10.0 bn Debt base2 (related to actual capital structure, minimum 40% Cap 60%) Regulated equity base (related to regulatory capital str
Slide 18: Germany: Determination of regulatory returns
Germany: Determination of regulatory returns Energy Networks Regulatory returns in German energy networks 2nd regulatory period 3rd regulatory period 1 1 1 1 Equity return New assets Old assets Total New assets Old assets Total Asset share 26% 74% 100% 50% 50% 100% Base rate 3.80% 2.24% 2.49% 1.04%
Slide 19: Content
Content 1. Overview 2 2. Energy Networks 7 2.2 Sweden 19 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 20: Energy Networks: Sweden
Energy Networks: Sweden Energy Networks Sweden 2015 2016 2015 2016 Grid length Grid conduct 1 Power (tkm) 136 136 Distr. volumes power (TWh) 36 37 Market share (%) 25 25 Distr. volumes gas (TWh) 5 5 2 Gas (tkm) 2 2 RAB power & gas (€bn) 3.8 3.9 Market share (%) 60 63 Major shareholdings E.ON Gas Sve
Slide 21: 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): 4.56% Regulatory period: 2016-2019 Adjustment of RAB once a period: Standard prices set by regulator Next regulatory period: 202
Slide 22: Content
Content 1. Overview 2 2. Energy Networks 7 2.3 CEE 22 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 23: Energy Networks: Hungary
Energy Networks: Hungary Energy Networks Hungary 2015 2016 2015 2016 Grid length Grid conduct Power (tkm) 85 85 Distr. volumes power (TWh) 18 18 Market share (%) 52 52 Distr. volumes gas (TWh) 12 15 1 Gas (tkm) 18 18 RAB power and gas (€bn) 1.5 1.5 Market share (%) 21 21 Major shareholdings E.ON Dél
Slide 24: 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, depreciation and planned Regu
Slide 25: 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, depreciation and planned Next regulatory period: 2021-2
Slide 26: Energy Networks: Czech Republic
Energy Networks: Czech Republic Energy Networks Czech Republik 2015 2016 2015 2016 Grid length Grid conduct Power (tkm) 66 65 Distr. volumes power (TWh) 13 13 Market share (%) 28 28 Distr. volumes gas (TWh) 3 3 1 Gas (tkm) 5 5 RAB power and gas (€bn) 1.4 1.5 Market share (%) 6 6 Major shareholdings
Slide 27: 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: 2016-2018 Depreciation period for power lines is 40 years Next regulatory period: 2019-2023
Slide 28: 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: 2016-2018 Depreciation period for gas pipes is 40 to 50 years Next regulatory period: 2019-202
Slide 29: Energy Networks: Romania
Energy Networks: Romania Energy Networks Romania 2015 2016 2015 2016 Grid length Grid conduct Power (tkm) 81 81 Distr. volumes power (TWh) 5 5 Market share (%) 17 17 Distr. volumes gas (TWh) 25 26 1 Gas (tkm) 21 21 RAB power and gas (€bn) 0.8 0.8 Market share (%) 55 55 Major shareholdings Delgaz Gri
Slide 30: 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 Annual adjustments of RAB for inflation, depr
Slide 31: 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): 8.43% + 1.40% Regulatory period: 2013-2017 incentive for specific investments in co
Slide 32: Energy Networks: Slovakia
Energy Networks: Slovakia Energy Networks Slovakia 2015 2016 2015 2016 Grid length Grid conduct Power (tkm) 38 38 Distr. volumes power (TWh) 9 9 Market share (%) 43 43 Distr. volumes gas (TWh) n/a n/a Gas (tkm) n/a n/a RAB power (€bn) 0.6 0.6 Market share (%) n/a n/a Major shareholdings Západosloven
Slide 33: 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; 6.47% Regulatory period: 2017-2021 for Jan to March 20173 Next regulatory period: 2022-2026 (expected) RAB: Depreci
Slide 34: Content
Content 1. Overview 2 2. Energy Networks 7 2.3 Turkey 34 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 35: Turkey: Enerjisa
Turkey: Enerjisa1 Energy Networks Highlights 220,000 km networks #1 Distribution Network Operator by grid length #1 Energy supplier by supplied TWh Istanbul 2.3 2nd Private power generator by installed Ankara capacity2 3.6 GW generation capacity 9 m retail customers Adana Network presence 1. J
Slide 36: Enerjisa: Financial highlights
Enerjisa: Financial highlights Energy Networks Turkey 2015 2016 1 Revenues (TL m) 11,827 12,635 EBITDA (TL m) 1 1,886 2,474 Distribution 877 1,178 Retail 246 247 Generation 777 1,054 1 Net Income (TL m) 285 296 E.ON share of 50% (TL m) 143 148 E.ON share of 50% (€m) 2 51 44 Divestment related impair
Slide 37: Enerjisa: Distribution & Retail
Enerjisa: Distribution & Retail Energy Networks Distribution 2015 2016 Retail 2015 2016 Power grid length (tkm) 211 220 Power sales (TWh) 40.0 33.3 Market share (%) 20 20 Market share (%) 19 14 Grid conduct (TWh) 42 44 # of customers 9.0 9.0 1 RAB (€bn) 0.9 1.0 Market share (%) 23 23 RAB (TL bn) 2.7
Slide 38: Enerjisa: Generation (1)
Enerjisa: Generation (1) Energy Networks 1 Assets Enerjisa Generation Production Start-up Subsidy Remuneration per Power plant Type capacity (MW) (TWh) year regime MWh In operation Bandırma-I Gas 936 3.9 2010 Bandırma-II Gas 596 1.7 2016 Kentsa Gas 46 1997 Tufanbeyli Coal/Lignite 450 0.7 2016 Lignit
Slide 39: Enerjisa: Generation (2)
Enerjisa: Generation (2) Energy Networks 1 Assets Enerjisa Generation Production Start-up Subsidy Remuneration Power plant Type capacity (MW) (TWh) year regime USD/MWh Çambaşı Hydro 45 0.2 2013 FIT $ 73 Kavşakbendi Hydro 191 0.5 2014 FIT $ 73 Arkun Hydro 245 1.0 2014 FIT $ 73 Bandırma Hydro 3 2014 Y
Slide 40: Turkey: Regulatory environment (1)
Turkey: Regulatory environment (1) Energy Networks Distribution Regulatory incentive framework Regulatory WACC (Pre-tax, local currency)1 3rd regulatory period: 2016-2020 Opex outperformance Return on RAB (RAB 2016: TL 3.8bn) Theft & loss allowance 11,9% Financing outperformance: Retur
Slide 41: Turkey: Regulatory environment (2)
Turkey: Regulatory environment (2) Energy Networks Renewables Incentive framework Feed in tariffs • Stable cash flows from USD-denominated feed in tariffs (for 10 years) USD denominated (USD/MWh) • Annual flexibility to opt for either feed in tariffs or market prices • Higher feed in tariff if power
Slide 42: Content
Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 43: Customer Solutions
Customer Solutions Customer Solutions Highlights 22 m customers across Europe Attractive product offering in New Solutions Solid heat business Energy Sales District Heating New Solutions 43
Slide 44: 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
Slide 45: Customer Solutions: Financial highlights
Customer Solutions: Financial highlights Customer Solutions 2015 2016 €bn Germany UK Other Total Germany UK Other Total Revenues 8,539 9,659 7,416 25,614 7,781 7,791 6,796 22,368 Adjusted EBITDA1 452 402 258 1,112 299 460 351 1,110 1 Adjusted EBIT 397 278 131 806 232 365 215 812 Adjusted EBIT margin
Slide 46: Customer Solutions: Financial highlights
Customer Solutions: Financial highlights Customer Solutions Adjusted EBIT1 by business pillars €bn Energy sales 2015 0.3 0.4 ~ 0.71 Energy sales financials €bn 2016 0.3 0.3 ~ 0.71 Gross Margin 2015 1.2 1.4 Heat 2015 0.1 2016 1.2 1.3 2016 0.1 OPEX2 2015 0.8 2015 0.9 1.0 Total Adj. EBIT 2016 0.8 1.0 2
Slide 47: Content
Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 42 3.1 Energy sales: Country-by-country 47 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 48: Energy sales: Germany & UK
Energy sales: Germany & UK Customer Solutions Germany 2015 2016 UK 2015 2016 Power sales (TWh) 1 46.4 46.3 Power sales (TWh) 41.5 37.4 # of E.ON customers - power (m) 5.3 5.3 # of E.ON customers - power (m) 4.7 4.3 2 # of customers total market - power (m) 45.7 45.7 # of customers total market - pow
Slide 49: Energy sales: Sweden & Italy
Energy sales: Sweden & Italy Customer Solutions Sweden 2015 2016 Italy 2015 2016 Power sales (TWh) 14.9 15.7 Power sales (TWh) 8.2 8.2 # of E.ON customers - power (m) 0.7 0.7 # of E.ON customers - power (m) 0.2 0.2 # of customers total market - power (m) n/a 4.8 # of customers total market - power (
Slide 50: Energy sales: Romania & Czech Republic
Energy sales: Romania & Czech Republic Customer Solutions Romania 2015 2016 Czech Republic 2015 2016 Power sales (TWh) 4.9 4.7 Power sales (TWh) 16.4 15.9 # of E.ON customers - power (m) 1.4 1.4 # of E.ON customers - power (m) 1.1 1.1 1 # of customers total market - power (m) 17.7 17.2 # of customer
Slide 51: Energy sales: Hungary & Slovakia
Energy sales: Hungary & Slovakia Customer Solutions Hungary 2015 2016 Slovakia 2015 2016 Power sales (TWh) 13.5 13.6 Power sales (TWh) 5.7 5.6 # of E.ON customers - power (m) 2.5 2.5 # of E.ON customers - power (m) 0.9 0.9 3 # of customers total market - power (m) 6.9 6.9 # of customers total market
Slide 52: Content
Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 42 3.2 Heat and New Solutions 52 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 53: 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
Slide 54: New Solutions: B2B Large
New Solutions: B2B Large Customer Solutions Energy Consulting Flexibility & Renewables Energy Efficiency On-site Generation Marketing Energy Storage Energy Consulting Managing energy Generating energy Optimising and monetising Providing flexibility Designing and delivering consumption efficiently fl
Slide 55: New Solutions: B2C/B2B SME
New Solutions: B2C/B2B SME Customer Solutions PV + Storage Mobility Home Heating Software/ Customer Engagement Successful launch and scaling of Market leading position in Reinforcement of heating E.ON Aura across Germany – an Denmark with ~2,500 public solutions in six regions with ~2m digitally eng
Slide 56: Heat and New Solutions in figures
Heat and New Solutions in figures Customer Solutions Heat networks 2015 2016 New Solutions 2015 2016 Germany On-site generation (incl. industrial generation) (MW) 1,258 1,501 1 Heat sales (TWh) 2.1 2.2 thereof Germany 629 698 Market share (%) 5 5 thereof UK 583 725 # of connected households (k) 140
Slide 57: Content
Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 58: Renewables portfolio of E.ON
Renewables portfolio of E.ON Renewables 3.2 GW Highlights 5.3 GW Operated capacity1 2.1 GW 4.6 GW Owned capacity2 1.1 GW Offshore capacity 3.5 GW Onshore + PV capacity 1. Operated sites, where E.ON is the operator, regardless the ownership share 2. Pro rata 58
Slide 59: Renewables at a glance
Renewables at a glance Renewables What we do Wind Offshore We are among the largest renewable energy players in our core markets (Europe and US) Wind Onshore Our focus is offshore and onshore wind, as well as utility-scale PV and energy storage We deliver & own utility-scale renewable projects
Slide 60: Renewables: Financial highlights
Renewables: Financial highlights Renewables 2015 2016 €m Onshore Wind/ PV Offshore Wind Total Onshore Wind/ PV Offshore Wind Total Revenues 957 524 1,481 728 629 1,357 1 Adjusted EBITDA 422 328 750 308 488 796 1 Adjusted EBIT 189 202 391 92 338 430 Investments (cash-effective) 221 788 1,010 465 605
Slide 61: Technology and country profile
Technology and country profile Renewables Capacity (MW) Production (GWh) 2016 Onshore Offshore PV Total Onshore Offshore PV Total Accounting view Germany 209 301 0 510 314 1,117 n/a 1,431 UK 250 646 0 896 505 2,097 n/a 2,602 US 2,089 0 19 2,108 5,989 n/a 37 6,026 Denmark 0 0 0 0 n/a 0 n/a 0 Sweden 1
Slide 62: Onshore wind + PV: Key data
Onshore wind + PV: Key data Renewables Capacity (MW) Production (GWh) Avg. Revenue (€/MWh) 1 2015 2016 2015 Load factor % 2016 Load factor % 2016 Accounting view Germany 213 209 395 21 314 17 95 UK 250 250 657 30 505 23 130 US Onshore 1,888 2,089 5,298 32 5,989 34 39 US PV 19 19 36 n/a 37 n/a 137 Sw
Slide 63: Offshore wind: Key data
Offshore wind: Key data Renewables Avg. revenue Capacity (MW) Production (GWh) (€/MWh) 2015 2016 2015 Load factor % 2016 Load factor % 2016 Accounting view Germany 288 301 480 59 1,117 43 195 UK 646 646 2,023 40 2,097 38 157 Denmark 0 0 0 0 0 0 0 Sweden 48 48 216 52 201 47 47 Total 982 995 2,719 40
Slide 64: Portfolio changes in 2016
Portfolio changes in 2016 Renewables Portfolio Changes 2016 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 Fr
Slide 65: Projects under construction
Projects under construction Renewables Projects under construction Total capacity E.ON share E.ON share Accounting Load factor % 1 Support Support Support Windfarm Country COD 2 MW pro rata MW in % treatment (est.) regime expiry level/MWh Onshore Radford's Run US 278 278 100 1 46 Q4/2017 REC/PTC 202
Slide 66: 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 1 COD MW % MW treatment 2016 GWh factor % regime expiry Onshore Alt Mahlisch I 5 67 3 2 8 20 04/2002 FIT 03/2022 Alt Mahlisch II 4 67 2 2 5 15 12/2003 FIT
Slide 67: 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 1 COD MW % MW treatment 2016 GWh factor % regime expiry Mutzschen I 8 67 5 2 18 26 12/2004 FIT 01/2022 Mutzschen II 6 67 4 2 14 27 09/2006 FIT 08/2023 Naun
Slide 68: 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 2016 GWh factor % regime expiry €/MWh Offshore Alpha Ventus I 30 26 8 3a 106 41 12/2010 FIT 07/2030 150 Alpha Ventus I
Slide 69: Asset overview UK (Onshore 1)
Asset overview UK (Onshore 1) Renewables Assets UK Total capacity E.ON share Pro rata Accounting Total production Load Support Support 1 COD MW % MW treatment 2016 GWh factor % regime expiry Onshore 2 Bowbeat (Emly Bank) 16 100 16 1 27 20 10/2002 NFFO/ROC 10/2026 Bowbeat (Roughside) 16 100 16 1 28 2
Slide 70: Asset overview UK (Onshore 2)
Asset overview UK (Onshore 2) Renewables Assets UK Total capacity E.ON share Pro rata Accounting Total production Load Support Support COD MW % MW treatment 2016 GWh1 factor % regime expiry Holmside (NFFO) 2 100 2 1 4 20 01/2004 NFFO 11/2018 Holmside (RO) 3 100 3 1 3 12 01/2004 RO 03/2027 Out Newton
Slide 71: 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 2016 GWh factor % regime expiry ROC/MWh Offshore Blyth 4 100 4 1 0 0 01/2000 RO 03/2027 n/a Humber 1 108 100 108 1 394 42 08/201
Slide 72: Asset overview Italy
Asset overview Italy Renewables Assets Italy Total capacity E.ON share Pro rata Accounting Total production Load Support Support 1 COD MW % % treatment 2016 GWh factor % regime expiry Onshore Alcamo 32 100 32 1 72 26 10/2011 FIP 10/2026 Florinas 20 100 20 1 32 18 04/2004 expired 04/2016 Iardino 14 1
Slide 73: 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 2016 GWh factor % regime expiry DKK/MWh Offshore Rødsand 2 207 20 41 3a 716 40 12/2010 CfD 01/2022 629 Total Denmark 207 41 716
Slide 74: 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 2016 GWh factor % regime expiry Onshore Boel 2 100 2 1 5 32 01/2001 expired 12/2015 Knäred 20 100 20 1 49 28 05/2012 Green Certificate 04/2027 Li
Slide 75: Asset overview Poland
Asset overview Poland Renewables Assets Poland Total capacity E.ON share Pro rata Accounting Total production Load Support Support COD MW % MW treatment 2016 GWh1 factor % regime expiry Onshore Barzowice I 21 100 21 1 59 33 09/2011 Green certificate 07/2026 Lebcz I 8 67 5 2 15 18 01/2007 Green certi
Slide 76: 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 COD 2 PPA MW % MW treatment 2016 GWh factor % regime expiry $/MWh Onshore Anacacho 100 100 100 1 339 39 12/2012 REC/PTC 12/2022 23 yes Champion 127 100 127 1
Slide 77: 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 2 PPA MW % MW treatment 2016 GWh factor % regime expiry $/MWh Pioneer Trail 150 100 150 1 430 33 01/2012 REC/PTC 12/2021 23 yes Pyron 249 100 249 1 774 3
Slide 78: Regulatory support
Regulatory support Renewables E.ON Renewables footprint (2016) Revenues Merchant 26% Merchant: Wholesale power price, variable certificates Regulated: Feed in tariffs, Production Tax Credits (PTC), Contracts for Difference (CfD), Fixed Power Purchase Agreements (PPAs), 74% Regulated Long-term he
Slide 79: 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 Credit ($23/ MWh)1 Renewable Obligation Certificates (ROC) - Renewable Energy Certificate (REC) (driven by state-lev
Slide 80: 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 Support regime: Assets with COD until 2013: Feed in premium (FIP) to Remuneration (EEG 14): market price - Initial tariff: €154/ MWh for 12
Slide 81: 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 Remuneration: (CfD), whereby CfD strike price is derived Remun
Slide 82: 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 (full consolidation) (full consolidation) (at equity consolidation) (pro rata consolidation) E.ON share of project 100% >50% < 100% = < 50% = < 50% Capacity view Pro rata MW 100% pro r
Slide 83: Content
Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 84: PreussenElektra
PreussenElektra PreussenElektra What we do Active and operated by PreussenElektra Active and minority share PreussenElektra Brunsbüttel PreussenElektra covers our nuclear generation activities Shut down Brokdorf in Germany Decommissioning Stade Krümmel The German nuclear exit, which was decided
Slide 85: Financials and nuclear power sales
Financials and nuclear power sales PreussenElektra Financials Nuclear power sales (TWh) €m 2015 2016 2015 2016 Revenues 2,290 1,538 Owned generation (Accounting view) 37.6 32.4 1 Adjusted EBITDA 760 644 Purchases 9.8 4.3 1 Adjusted EBIT 563 553 thereof jointly owned power plants (E.ON has minority i
Slide 86: Decommissioning
Decommissioning 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 201
Slide 87: Decommissioning
Decommissioning PreussenElektra Decommissioning of a nuclear power plant Shut down phases 30-40 10-15 1 year 4 years 2 years years years Service operation and dismantling Service operation and dismantling Post operation and (Fuel on site) Power production Decommissioning Site cleaning and landscapin
Slide 88: Provisions for decommissioning
Provisions for decommissioning PreussenElektra Schematic illustration of provision building at E.ON1 Provision utilization for German nuclear €m 630 373 Real discount rate: -0.9% t0 t0 t+1 t+2 t+n 2015 2016 Costs for decommissioning Decommissioning provisions Accretion 1. Disregarding any provision
Slide 89: Content
Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 90: Relevant at equity participations of E.ON
Relevant at equity participations of E.ON E.ON share 1 At equity contribution Company Description % to E.ON result 2016 (€m) Energy Networks Germany Städtische Werke Magdeburg GmbH & Co. KG Municipal utility (energy, water) in the city of Magdeburg 26.7 11.92 REWAG Regensburger Energie- und Wasserve
Slide 91: Content
Content 1. Overview 2 2. Energy Networks 7 3. Customer Solutions 42 4. Renewables 57 5. PreussenElektra 83 6. Other 89 7. Financials 91
Slide 92: E.ON Quarterly Financials – P&L
E.ON Quarterly Financials – P&L €m Q1 20151 Q2 20151 H1 20151 Q3 20151 9M 20151 Q4 20151 FY 20151 Sales 12,509 10,274 22,783 9,259 32,042 10,614 42,656 Adjusted EBITDA2 2,107 1,186 3,293 889 4,182 1,662 5,844 Depreciation/amortization recognized in Adjusted EBIT -564 -607 -1,171 -593 -1,764 -517 -2,
Slide 93: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs Sales1 €m Q1 2015 Q2 2015 H1 2015 Q3 2015 9M 2015 Q4 2015 FY 2015 Energy Networks 3,706 3,925 7,631 3,853 11,484 3,505 14,989 Germany 2,987 3,310 6,297 3,239 9,536 2,776 12,312 Sweden 269 232 501 224 725 259 984 CEE & Turkey 450 383 833 390 1,223 470 1,693 Customer S
Slide 94: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs Sales €m Q1 20161 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 Custome
Slide 95: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs Adjusted EBITDA1,2 €m Q1 2015 Q2 2015 H1 2015 Q3 2015 9M 2015 Q4 2015 FY 2015 Energy Networks 774 617 1,391 554 1,945 788 2,733 Germany 495 361 856 303 1,159 527 1,686 Sweden 130 119 249 128 377 112 489 CEE & Turkey 149 137 286 123 409 149 558 Customer Solutions 549
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
Slide 97: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs Adjusted EBIT1,2 €m Q1 2015 Q2 2015 H1 2015 Q3 2015 9M 2015 Q4 2015 FY 2015 Energy Networks 541 404 945 314 1,259 552 1,811 Germany 352 241 593 165 758 371 1,129 Sweden 89 77 166 86 252 76 328 CEE & Turkey 100 86 186 63 249 105 354 Customer Solutions 485 43 528 -41 4
Slide 98: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs Adjusted EBIT2 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
Slide 99: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs 1 OCFbIT €m Q1 2015 Q2 2015 H1 2015 Q3 2015 9M 2015 Q4 2015 FY 2015 Energy Networks n/a n/a 694 905 1,599 38 1,637 Germany n/a n/a 210 673 883 -319 564 Sweden n/a n/a 246 102 348 195 543 CEE & Turkey n/a n/a 238 130 368 162 530 Customer Solutions n/a n/a 193 858 1,05
Slide 100: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs OCFbIT €m Q1 20161 Q2 2016 H1 2016 Q3 2016 9M 2016 Q4 2016 FY 2016 Energy Networks 564 945 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 134 168 302 92 394 211 605 Customer Solutions 53 496 549 59
Slide 101: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs 1 Investments (cash-effective) €m Q1 2015 Q2 2015 H1 2015 Q3 2015 9M 2015 Q4 2015 FY 2015 Energy Networks 160 275 435 328 763 758 1,521 Germany 88 144 232 190 422 373 795 Sweden 36 62 98 59 157 126 283 CEE & Turkey 35 70 105 79 184 259 443 Customer Solutions 93 76 16
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 196 338 534 332 866 553 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
Slide 103: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs 1 At equity contribution to Adjusted EBITDA/EBIT €m Q1 2015 Q2 2015 H1 2015 Q3 2015 9M 2015 Q4 2015 FY 2015 Energy Networks 44 66 110 -7 103 18 121 Germany 10 62 72 9 81 5 86 Sweden 0 0 0 0 0 0 0 CEE & Turkey 33 5 38 -16 22 13 35 Customer Solutions 9 7 16 7 23 7 30 G
Slide 104: E.ON Quarterly Financials – KPIs
E.ON Quarterly Financials – KPIs At equity contribution to Adjusted EBITDA/EBIT €m Q1 20161 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 Germ
Slide 105: 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