Focused Disciplined Striving. Q results 11 May 2016

Transcription

1 Focused Disciplined Striving Q results 11 May 2016

2 Q dominated by one-off effect Q Summary EBITDA 1 Important spin-off milestones achieved 2.8bn 3.1bn FY16 outlook confirmed EBITDA & UNI dominated by Gazprom agreement Q Q High cash conversion: 92% Economic net debt reduced to 27bn 1.0bn UNI 1 1.3bn Q Q Adjusted for extraordinary effects

3 German nuclear E.ON stays ready for joint solution despite high premium Final KFK 1 suggestions published German state to become operationally and financially accountable for all nuclear waste storage related issues Nuclear operators to deliver financing including risk premium of 35% on top of face-value provision amount for new stateowned fund With payment of risk premium liabilities are completely transferred to the state Nuclear operators remain accountable for operations, shut-down & dismantling including associated risks and chances E.ON s perspective Scope of solution with state taking over responsibility for storage related matters is sensible High risk premium, calculation not differentiated enough Existing provisions level very conservatively derived even more so when compared internationally Many relevant details in the KFK not yet clarified. Final assessment not yet possible E.ON interested in a consensual solution on the basis of KFK recommendation 2 1. Nuclear Commission (KFK Kommission zur Überprüfung der Finanzierung des Kernenergieausstiegs )

4 KFK suggestions qualify as special situation Catalyst Measures Decision criteria Deterioration in business environment Opex cuts Capex efficiency Asset rotation Committed Additional deterioration in financial environment Selective asset disposals Dividend policy Capital measures EPS impact Cash generation Cost of equity Government nuclear policy decision Capital measures Special situation 3

5 H listing Spin off update Key milestones achieved 1 Jan 2016 E.ON and Uniper organizational separate Carve-out effective Employees allocated to both companies Binding tax rulings obtained 26 Apr 2016 Capital market day Equity story, incl. strategy, KPIs, dividend policy, capital structure AGM invitation Spin-off report: detailed financial & legal documentation Q Roadshows Uniper to start prospectus filing procedure with German financial regulator BaFin 8 Jun 2016 AGM decision H Roadshows & capital market communication BaFin approval of Uniper prospectus Spin-off execution on track 4

6 EBITDA: disposals and commodity price effects offset by Gazprom agreement Q vs. Q EBITDA 1 Q Global Commodities 0.6 New Capacity 0.1 Other E.ON Russia (8%) Power Portfolio -0.3 Disposals -0.3 EBITDA 1 Q in bn 5 1. Adjusted for extraordinary effects

7 Underlying net income m Q Q % YoY EBITDA 1 2,844 3,071 8 Depreciation/amortization recognized in EBIT EBIT 1 2,051 2, Economic interest expense (net) EBT 1 1,528 1, Income taxes on EBT % of EBT 1 26% 23% - Non-controlling interests Underlying net income 1,013 1, Adjusted for extraordinary effects

8 END declined by 1bn despite pension provision increase Q ( bn) Provisions NFP END YE 2015 OCF Inv B&S Dividend Divest Pensions Others END Q NFP Provisions Pensions: -4.2 bn Pensions: -5.7 bn ARO: bn ARO: bn Cash Balance: 2.1 bn , ,0 0, Liquid Funds 8.2 bn Non Current Securities 4.7 bn Liquid Funds 9.1 bn Non-Current Securities 4.7 bn 7

9 2016 Outlook confirmed E.ON Going Concern bn bn EBITDA UNI bn Future E.ON bn EBITDA UNI 8 1. In transition year 2016 including at-equity contribution of Uniper on an underlying basis after assumed spinoff & deconsolidation; as of 2017 without Uniper contribution

10 Backup 9

11 Financial highlights m Q Q % YoY Sales 30,993 27, EBITDA 1 2,844 3,071 8 EBIT 1 2,051 2, Underlying net income 1,013 1, Operating cash flow 2 2,490 2, Investments Economic net debt -27,714-26, Adjusted for extraordinary effects 2. OCF from continuing operations 3. As of December 31, 2015

12 EBITDA and EBIT by unit m EBITDA 1 EBIT 1 Q Q % YoY Q Q % YoY Generation Renewables Global Commodities Exploration & Production Germany Other EU Countries Non-EU Countries Group Management / Consolidation Total 2,844 3, ,051 2, Adjusted for extraordinary effects

13 From EBITDA to Net Income m Q Q % YoY EBITDA 1 2,844 3,071 8 Depreciation/Amortization/Impairments EBIT 1 2,051 2, Economic interest expense (net) Net book gains Restructuring Mark-to-market valuation of derivatives Impairments (net) Other non-operating earnings Income/Loss from continuing operations before income taxes 1,533 1, Income taxes Income/loss from discontinued operations, net Non-controlling interests Net income/loss attributable to shareholders of E.ON SE 1,059 1, Adjusted for extraordinary effects

14 Generation m EBITDA 1 EBIT 1 Q Q % YoY Q Q % YoY Nuclear Steam (incl. Biomass) CCGT Other/Consolidation Total Main EBITDA effects (in bn) Nuclear (-0.2) Driven predominantly by lower volumes (Grafenrheinfeld closure) and lower prices in the Central Europe and Nordic nuclear fleet. Steam/CCGT/Other (+/- 0) Mainly due to disposal of Spanish & Italian thermal assets. Partially offset by COD of Maasvlakte Adjusted for extraordinary effects

15 Renewables m EBITDA 1 EBIT 1 Q Q % YoY Q Q % YoY Hydro Wind/Solar/Other Total Main EBITDA effects (in bn) Hydro (-0.1) Lower prices in all markets Disposal of Spanish & Italian hydro assets Wind/Solar/Other (+0.1) Contribution of offshore farms Humber & Amrumbank Adjusted for extraordinary effects

16 Global Commodities m EBITDA 1 EBIT 1 Q Q % YoY Q Q % YoY Power & Gas Coal, Oil, Freight & LNG Infrastructure/Other Total Main EBITDA effects (in bn) Power and Gas (+0.6) One-off provision release due to Gazprom agreement (+0.4bn) Improved gas optimization profitability and reduced losses from the hedging of transferred generation volumes Adjusted for extraordinary effects

17 Exploration & Production m EBITDA 1 EBIT 1 Q Q % YoY Q Q % YoY Total Main EBITDA effects (in bn) North Sea fields (-0.2) Disposal of Norway E&P activities Yuzhno Russkoje (-0.1) Volume effect (make-up year) Bafa price decline Adjusted for extraordinary effects

18 Germany m EBITDA 1 EBIT 1 Q Q % YoY Q Q % YoY Distribution Non-regulated/Other Total Main EBITDA effects (in bn) Distribution Networks (+/- 0) Reference year for new regulatory period (power) Non-regulated/Other (+/- 0) Stable results despite (increasingly) intense competition in sales business Adjusted for extraordinary effects

19 Other EU Countries m EBITDA 1 EBIT 1 Q Q % YoY Q Q % YoY Distribution Sales Other/Consolidation Total Main EBITDA effects (in bn) Distribution Networks (+/-0) Start of new regulatory periods in Sweden and Czech Republic No storm costs in Sweden Sales (+0.1) Organic improvements across regions In UK the margin benefitted from lower spend related to the government requirements for energy saving obligations Other/Consolidation (+/-0) Positive effect from weather normalization in Swedish Heat Adjusted for extraordinary effects

20 Non-EU Countries m EBITDA 1 EBIT 1 Q Q % YoY Q Q % YoY Russia (in Mio Ruble) 5,896-2, ,807-4, Other Non-EU countries Total Main EBITDA effects (in bn) Russia (-0.1) Effects related to Beresovskaja accident Other Non-EU countries (+/-0) Positive hedging effect related to Enerjisa net income Adjusted for extraordinary effects

21 Cash effective investments by unit m Q Q % YoY Generation Renewables Global Commodities Exploration & Production Germany Other EU Countries Non-EU Countries Group Management / Consolidation Investments

22 Economic net debt m 31 Dec March 2016 Liquid funds 8,190 9,070 Non-current securities 4,724 4,684 Financial liabilities -17,742-16,010 Adjustment FX hedging Net financial position -4,610-1,875 Provisions for pensions -4,210-5,739 Asset retirement obligations 2-18,894-18,966 Economic net debt -27,714-26, Net figure; does not include transactions relating to our operating business or asset management 2. Net of Swedish nuclear fund

23 Financial liabilities of the E.ON Group End of Q in billion 31 Mar Dec 2015 Maturity profile (as of end of Q1 2016) 2 Bonds in EUR in GBP in USD in CHF in SEK in JPY other currencies Promissory notes Commercial Paper Other liabilities Total EUR GBP USD YEN Other Thereof other liabilities from units end Q1 2016: 3.1bn 2. Bonds and promissory notes issued by E.ON SE, E.ON International Finance B.V. and E.ON Beteiligungen GmbH (fully guaranteed by E.ON SE) 3. Q1 2016: 1.2bn bond maturity

24 Economic interest expense (net) m 3M M 2016 Difference (in m) Interest from financial assets/liabilities Interest cost from provisions for pensions and similar provisions Accretion of provisions for retirement obligation and other provisions Capitalized interests Other Economic interest expense (net) Borrowing cost that are directly attributable to the acquisition, construction or production of a qualified asset. Borrowing cost are (virtual) interest costs incurred by an entity in connection with the borrowing of funds. (interest rate: 5.75%) 2. Includes mainly effects from market valuation of interest derivatives, Swedish Nuclear Fund, tax related interest and interest rate changes of other long term provision

25 E&P - Oil & Gas production m boe Q Q % YoY Skarv Njord/Hyme Elgin-Franklin Babbage Huntington Rita Total North Sea Yuzhno Russkoje Total

26 Outright hedging (Central Europe & Nordic) /MWh 2016 >80% ~39 ~ >80% ~33 ~ >30% ~27 ~ % 20% 40% 60% 80% 100% Central Europe Nordic 25

27 E.ON Investor Relations contact Florian Floßmann T+49 (201) Head of Investor Relations Alexander Karnick T+49 (201) Vice President Investor Relations Dr. Stephan Schönefuß T +49 (201) Manager Investor Relations stephan.schoenefuss@eon.com Martina Burger T +49 (201) Manager Investor Relations martina.burger@eon.com 26

28 Financial calendar & important links Financial calendar May 11, 2016 Interim Report I: January March 2016 June 8, 2016 June 9, Annual Shareholders Meeting Dividend Payment Date August 10, 2016 Interim Report II: January June 2016 November 9, 2016 Interim Report III: January December 2016 Important links Capital Market Story Other Presentations Annual Reports Interim Reports Shareholders Meeting Facts & Figures Creditor Relations

29 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 the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments. 28