20180914 E.ON - Creating the future of energy · Framework agreement signed — innogy fully supports the transaction and its implementation Support areas • Antitrust & other regulatory

Creating the future of energy

September 2018

DisciplineFocusGrowth

http://www.energyfortomorrow.eu/

• Focus: Europe’s first energy player with exclusive downstream focus

• Unique downstream footprint: RAB and customer numbers rise >60%1

• Earnings quality: network EBIT share rises to ~80%1

• Strong synergies: fading nuclear earnings overcompensated by €600-800m synergies

• Attractive dividends: aiming to deliver absolute annual dividend growth

• EPS accretion: from second year after closing

• Solid capital structure: high commitment to strong BBB rating

• Limited cash impact: acquisition of RWE‘s 76.8% in innogy via asset exchange; attractive offer to minority shareholders

~371, 3

FutureE.ON

IberdrolaNat. Grid Enel Engie

FutureE.ON

Enel Engie

~501

Iberdrola

Regulated Asset Base (RAB € bn)Regulated Asset Base (RAB € bn)

Customer Numbers (m)Customer Numbers (m)

Enel2 FutureE.ON

Engie2 Nat. Grid2 Iberdrola2

~51

EBIT (€ bn)EBIT (€ bn)

Creating the future of energy

1. Future E.ON pro-forma EBIT 2017 (innogy data based on public information), 2. Bloomberg Data, 3. RABs from different regulatory regimes are not directly comparable due to significant methodical differences.

2

Creating two focused energy companies

E.ONE.ON RWERWE

Future E.ONFuture E.ON RWERWE16.67%

Target structureTarget structure

Structure todayStructure today~77% innogy~77% innogy

3

Acquisition of innogy via innovative asset exchange

innogy

76.8%(RWE)

23.2%(Min. share-

holders)

Total equity value: ~€22bn16.67% Stake in Future E.ON

(~€3.7bn)

E.ON & innogy Renewables&

Other Assets(~€13.5bn)1

Cash payment to E.ON (- €1.5bn)

Offer price and innogy dividend for 2017 and ’18 (~€5.2bn)

1. Acquisition of RWE‘s 76.8% stake in innogy via asset exchange

2. RWE to get in exchange:• 16.67% in new E.ON via 20% capital increase against

contribution in kind (authorized capital)• E.ON‘s and innogy‘s renewables businesses4

• Additional assets: E.ON’s minority stakes in two RWE operated nuclear power plants2, innogy’s gas storage business and minority participation in Kelag

3. RWE receives innogy dividends for 2017 and 20184. Net cash payment from RWE to E.ON of €1.5bn3

5. Attractive cash offer to minority shareholder in innogy with total value of €40.00 per share (offer price (€36.76) plus FY 2017 dividend of €1.60 per share, plus expected dividend of €1.64 per share for FY 2018)

Asset exchange (limited cash impact)

Cash element

1. Equity value for transfer perimeter, 2. Gundremmingen C (25% stake) and Emsland (12.5% stake), 3. Payment to balance asset valuation, 4. Excludes 20% in Rampion and certain onshore capacity indirectly held by E.ON and innogy.

Innogy dividends (~€1.4bn)

Renewables11x EV/EBITDA

4

Upper end of guidance

+58% YoY

Leverage target of 3.9x achievedbefore monetization of Uniper

Payout ratio increased 2x since start of new E.ON

3-4% EBIT CAGR3

5-10% EPS CAGR3

Transacting from a position of strength

EBIT€3.1bn1

EBIT€3.1bn1

ANI€1.4bn1

ANI€1.4bn1

END€19.2bn1

END€19.2bn1

DividendDividend

Mid-term Growth

Mid-term Growth

Group EBITDA

~€8bn2

Customer Solutions

>31mCustomers1

~50mCustomers2

Energy Networks

~€23bn RAB1, 4

~€37bn RAB2, 4

€5bn1

1. E.ON standalone 2017 reported, 2. Future E.ON pro-forma 2017 (innogy data based on public information), 3. 2018-2020 based on existing portfolio (E.ON standalone), 4. RABs from different regulatory regimes are not directly comparable due to significant methodical differences.

Regulated Non-regulated

E.ON today Future E.ON (’17)E.ON today (’17)

E.ON standalone

5

Sweden1

~€4bn ~1m- ~7m1

NL/BE

- ~4m2

Germany3

~€20bn ~14m

CEE3

~€11bn4 ~13m

Turkey1

~€1bn ~9m

Unique downstream position across Europe

Energy Networks (RAB)

Customer Solutions (number of customers)

Southern Europe

- ~1m3

1. E.ON 2017 reported, 2. innogy2017 reported, 3. Future E.ON pro-forma 2017 (innogy data based on public information), 4. RABs from different regulatory regimes are not directly comparable due to significant methodical differences.

Excludes npower UK customers subject to transaction with SSE

UK

6

Focus, scale and efficiency pre-requisite for success

DigitizationElectrificationNew culture &

capabilities

Empoweredcustomers

De-carbonization

• Future E.ON’s unique downstream positioning fully captures benefits of energy mega trends

• Creating markets for customers through our products, services, technologies

• “Go to” partner for politicians and regulators in designing the energy transition

• Combining innovation power to enhance development of state-of-the-art products

• Synergies improve cost position and roll-out speed

• Innovative services levered on significantly higher customer number

Mega trends accelerate and reinforce each other Mega trends accelerate and reinforce each other

Focus, scale and efficiency needed in New Energy World

Focus, scale and efficiency needed in New Energy World

7

Spin-off Uniper& reset of E.ON

2016 2018 2020 and beyond

Position of strength Position of strength

• Robust portfolio

• Strong financial & operational delivery

• Balance sheet headroom

Transition yearTransition year

Acceleration of strategy executionUnique strategic positionUnique strategic position

• Focus on high-performance regulated networks and state-of-the-art customer solutions

• Reduction of portfolio complexity

• Enhanced earnings quality: ~80% of EBIT1 is regulated

• Aiming to deliver absolute annual dividend growth

• Focus on high-performance regulated networks and state-of-the-art customer solutions

• Reduction of portfolio complexity

• Enhanced earnings quality: ~80% of EBIT1 is regulated

• Aiming to deliver absolute annual dividend growth

1. Future E.ON pro-forma 2017 (innogy data based on public information). 8

Potential for premium valuation

Potential for premium valuation

3

4

5

6

7

8

9

10

11

12

Value creation for shareholders

Instant redeployment of

capital

Renewables1

Platformfor high

Synergies (€600-800m)

Platformfor high

Synergies (€600-800m)

Shareholder value

creation

1. Enterprise value (schematic)

Renewables11x EV/EBITDA

innogy acquisition at ~10x EV/EBITDA

Realization of valuation premium

9

Integration of innogy provides for strong synergy potential

2019 2020 2021 2022

Estimated synergies (€ m)2Estimated synergies (€ m)2 Synergy focus1, 2Synergy focus1, 2

€600-800m

~55%

~25%

~5%

• Strong synergy potential of €600-800m

• 10-15% of controllable costs

• ~5000 FTEs affected (~7% of employee base)

• Strong synergy potential of €600-800m

• 10-15% of controllable costs

• ~5000 FTEs affected (~7% of employee base)

Energy Sales & Customer Solutions

Corporate Functions & IT

Energy Networks~100%

1. Synergy split (€ million), 2. Future E.ON pro-forma 2017 (innogy data based on public information). 10

~80%2

~65%1

Regulated Non-regulated

E.ON today Future E.ON

Share of regulated network earnings (EBIT)Share of regulated network earnings (EBIT)

Attractive earnings & dividend profile secured long-term

Synergies to over-compensate fading nuclear earnings

Synergies to over-compensate fading nuclear earnings

0

1

2

3

4

5

6

E.ON stand-alone

EBIT development3

Enlarged E.ON

2018 2019 2020 2021 2022

1. E.ON 2017 reported, 2. Future E.ON pro-forma 2017 (innogy data based on public information), 3. Schematic illustration. 11

Future E.ON‘s key financials

EBITDAEBITDA

EPSEPS

EBITEBIT

~€8bn1

~€5bn1

EPS accretion from second year after completion

DividendDividendAiming to deliver absolute annual dividend growth

(fixed dividend for 2018: €0.433)

Energy Networks

Customer Solutions

Non-Core

~80% regulated2

1. Future E.ON pro-forma 2017 (innogy data based on public information), 2. Future E.ON pro-forma EBIT 2017 (innogy data based on public information), pie chart does not account for corporate functions & others, 3. Fixed for FY2018 (paid in 2019).

12

• Nuclear provisions: ~€0.9bn• AROs (Renewables): ~€0.9bn• Tax equity liabilities

(Renewables): ~€0.6bn• Pension provisions

(Renewables): ~€0.4bn

Pro forma economic net debt

Economic Net Debt 2017

~5.0

~3.6

~10.6

~19.2

E.ON today1 (€ bn)

Economic Net Debt 2017

~35

Provisions for pensionsNet financial position Asset-retirement obligations

1. E.ON 2017 reported, 2. Future E.ON pro-forma 2017 (innogy data based on public information), 3. E.ON will address structural subordination post closing, 4. Nord Stream I stake.

~5+ Monetization of Uniper shares

+ Transfer of NS14 into CTA

( )Further deleveraging measures

to be realized in ‘18 (€ bn)

Includes:• Acquisition of 23.2% minority shares • €1.5bn cash payment from RWE

Future E.ON2, 3 (€ bn)

~€2.8bn debt transferred to RWE

~€2.8bn debt transferred to RWE

13

Investor agreement with RWE ensures equal treatment of shareholders

Preamble • RWE to act purely as financial investor

CorporateGovernance

Shareholder structure and rights

• Right to nominate one Supervisory Board member

• Not allowed to increase stake above 16.67%

• Not allowed to sell to an E.ON competitor

14

Framework agreement signed —innogy fully supports the transaction and its implementation

Support areas

• Antitrust & other regulatory approvals

• Preparation of carve-out of innogy’s RES business

• Communication: public, internal and in capital markets

Working together in integration process

Safeguarding employees’ interests

• Joint project for integration planning & to define future operating model

• E.ON with right of final decision

• Employees will be treated fairly and as equally as possible

• Transparent process to determine leadership functions

Agreement supportive for transaction timeline and expected synergies of €600–800m

15

2019201920182018 2021202120202020

1. Payment to balance asset valuation, 2. Transfers of E.ON minority shares in the two RWE-operated nuclear power plants Gundremmingen (25% stake) and Emsland (12.5% stake) to RWE.

1st Closing• E.ON becomes ≥76.8%

shareholder in innogy• RWE becomes 16.67%

shareholder in E.ON (20% capital increase)

• €1.5bn cash payment to E.ON1

• Transfer of other assets2

1st Closing• E.ON becomes ≥76.8%

shareholder in innogy• RWE becomes 16.67%

shareholder in E.ON (20% capital increase)

• €1.5bn cash payment to E.ON1

• Transfer of other assets2

2nd Closing• Transfer of E.ON and innogy RES Assets• Transfer of Kelag participation and gas storage assets of

innogy

2nd Closing• Transfer of E.ON and innogy RES Assets• Transfer of Kelag participation and gas storage assets of

innogy

Voluntary public takeover offer (PTO)

ended 25 July

Acceptance rate: 9.4%

Voluntary public takeover offer (PTO)

ended 25 July

Acceptance rate: 9.4%

Transaction timeline

Antitrust approvalsFull legal integration

Integration & synergies

16

Schematic merger control proceedings

Pre-notificationPre-notification

Simplified overview of process steps of EU merger control proceedings(possible (partial) referrals to national authorities not taken into account1)

PreparationsPreparationsPhase I

(25 working days)Phase I

(25 working days)Phase II

(90 working days + extensions)Phase II

(90 working days + extensions)

• Draftingnotificationdocuments

• Discussing draft notification, responding to information requests

• Finalizing notification

• Assessing notification

• Obtaining additional information requests

• Analyzing market segments in detail

• Negotiating potential conditions

≈ May 2018Not before mid-2019

Expected EU Commission clearance decision

Presentation of potential concerns regarding market segments

1. Federal Cartel Office Germany, CMA, CEE 17

Investment highlights

Starting from position of strength: Creating the future of energy

Unique downstream positioning with ~80% regulated earnings1Focus

Aiming to deliver absolute annual dividend growthGrowth

Renewables value crystallization and €600-800m synergiesHigh commitment to strong BBB rating Discipline

1. Future E.ON pro-forma 2017 (innogy data based on public information). 18

H1 2018 Results

August 8th, 2018


E.ON standalone

Strong H1 2018

Strong EBIT development:+10% H1 2018 vs. H1 2017

Adj. Net Income increased +19% YoY

FY 2018 guidance confirmed: EBIT €2.8-3.0 bn, Adj. Net Income €1.3-1.5 bn

Cooperation agreement with innogy ensures full support for transaction

PTO2 for innogy minority shareholders successfully completed

HighlightsHighlights

881

1,767

1,052

1,942

EBIT Adj. Net Income

H1 2018H1 2017

Key Financials1Key Financials1

€ m

1. Adjusted for non operating effects, 2. Public Takeover Offer

Economic Net Debt

15.9

19.2

€ bn

E.ON standalone

20

Framework agreement signed – innogy fully supports the transaction and its implementation

Support areas

• Antitrust & other regulatory approvals

• Preparation of carve-out of innogy’s RES business

• Communication: public, internal and in capital markets

Working together in integration process

Safeguarding employees’ interests

• Joint project for integration planning & to define future operating model

• E.ON with right of final decision

• Employees will be treated fairly and as equally as possible

• Transparent process to determine leadership functions

Agreement supportive for transaction timeline and expected synergies of €600–800m

E.ON standalone

21

Operational update

• Germany: regulatory review electricity –Constructive hearings with BNetzA

• Sweden: increased network charges

• Turkey: higher allowed WACC on growing Regulated Asset Base

• More customers compared to prior year • More than 100,000 additional B2C customers

compared to prior year• In UK, only large player with B2C customer gains over

last 12 months (~50,000) now 2nd largest player in B2C segment

• Capacity growth delivery• Offshore: Rampion completed, Arkona on track• Onshore US: FID for 220 MW project in Texas,

further 350 MW close to FID

• Business fully on track

E.ON standalone

22

+ PreussenElektra: positive one-off effect in 2017, lower achieved power prices, higher volumes due to plant outages in 2017

+ Turkey: omission of book loss from asset sale

– Germany: positive one-off effect in Q2 2018, reversal of regulatory effects, concession loss Hamburg, new regulatory period gas

+ Sweden: power tariff increase, adverse FX dev.

– Germany & UK: price increases in 2017, restructuring costs

– UK: increased wholesale prices, competitive dynamics, price caps

+ Onshore & Offshore: capacity additions (Bruenning’s Breeze, Radford’s Run, Rampion)

– Onshore: subsidy expiries

EBIT 10% above prior year

31

105

19

37

+175

H1 2018 1,942

Non-Core

Corp. Functions & Other,

Consolidation

Renewables

Customer Solutions

Energy Networks -17

H1 2017 1,767

EBIT1 H1 2018 vs. H1 2017€ m

1. Adjusted for non operating effects

Energy Networks

Customer Solutions

Renewables

Key H1 Effects

Non-Core

+/–

–/+

+/–

+/–

E.ON standalone

23

Adj. Net Income 19% above prior year

H1 2018€ m

~€ 60m improvement yoy mainly due to refinancing benefits, partly compensated by lower interest income from asset portfolio

1. Adjusted for non operating effects, 2. Without interest accretion of nuclear provisions

EPS (€ per share)

1,052

1,612

1,942

AdjustedNet Income1

Minorities -157

Income Taxes -403

Profit before Taxes1

Other interestexpenses -37

Interest on fin. assets/

liabilities2-293

Group EBIT1

Tax rate of 25% (stable yoy)

€0.49

E.ON standalone

24

END decreasing mainly due to sale of Uniper stake

-1.4

-0.9

-0.8

-10.6-10.6

-2.9-3.6

-2.5

-5.0

0.5

4.2

3.8

Dividend

0.8

END FY 2017

1.4

END H1 2018

+3.4

-15.9

Other (CTA2 Funding)

PensionsAROs

0.1

DivestmentsOCF Investments

-19.2

€ bnEND1 H1 2018 vs. FY 2017

1. Economic net debt definition takes into account the decommissioning provisions calculated with a real discount rate of 0.0% as opposed to IFRS AROs,2. Contractual Trust Arrangement

Net financial position

AROs

Pension provisions

Liquidation of pension scheme in Q1 2018 results in reduction of pension provisions –limited effect on ENDSale of Uniper stake

E.ON standalone

25

Outlook 2018 confirmed

EBIT1

Adj. Net Income1

Outlook 2018


€1.3-1.5 bn

Effects for the remainder of 2018

– PreussenElektra: positive one-off effect in 2017, lower hedged prices

Energy Networks

Customer Solutions

Renewables

– Germany: reversal of regulatory effects, new regulatory period gas,concession loss Hamburg

– Turkey: one-off effect in 2017

+ Germany: negative one-off effect in 2017

– Germany & UK: restructuring costs, competitive dynamics; UK price cap

+ Offshore & Onshore: capacity additions (Bruenning’s Breeze, Radford’s Run, Rampion)

– Onshore: subsidy expiries

€2.8-3.0 bn

Non-Core

E.ON standalone

26

Appendix

E.ON Group


E.ON standalone

Delivering step by step – Strategy & Operations

Portfolio reset completed

• €3.8bn Uniper disposal: decision to accept Fortum’s offer

• De-risking: transfer of nuclear storage liabilities to government

• €0.2bn proceeds: successful IPO of Enerjisa’sdownstream business

• + ~500MW onshore wind in US in 2017

• + ~130k customer in Q4 ’171 – turn-around achieved

• €400m delivery of Phoenix performance program

• ~€0.6bn nuclear decommissioning savings secured

• ~€1bn total contract value in B2B new solutions (2017)

• ~200% sales growth in PV/battery: fastest growing solar company in Germany

• Innovation & digitization: successful launch of new products

• E-mobility: gaining traction

New culture & capabilities Operational excellence

1. Germany and UK 29

E.ON standalone

Each pillar with focused and disciplined growth

Customer Solutions Energy Networks Renewables

• Grow & sustain RAB• Develop transformative platform• Drive adjacent businesses

+~€2-3bn

E.ON power RAB1

2017 2020

~€19bn

~€21-22bn

• Energy sales: reinvent with profitable customer growth

• New solutions: rapidly scale up• Heat: leverage existing positions

+~2m

Total Customer #

2017 2025

~22m

~24m

• Onshore: grow at scale• Offshore: leverage existing

options

+~2GW

E.ON operated capacity

~6GW

~8GW

2017 2020

30

E.ON standalone

1. Based on constant FX rates.

Attractive stand-alone profile

Dividend growth

+40%

2017 2018

€0.30

EPS growth

+5-10% CAGR

€0.60 –0.70

2018 2020

EBIT growth

5.3GW

~8GW

2017 2020

2018 2020

Group CAGR: +3-4%

€2.8 –3.0bn

€0.431

31

Aiming to deliver absolute annual dividend growth

1. Fixed for FY 2018 (paid in 2019).

E.ON standalone

Drive value creation Absolute annual dividend growth

Sustainable & resilient EPS growth

Customer-led Digitization Operational excellence

Capitaldiscipline

E.ON‘s guiding principles

32

E.ON standalone

Strong delivery of financial targets

1. Adjusted for non operating effects.

2016 2017 2016 2017

5.3x

3.9x

€26.3bn

€19.2bn

~€7bn

2016 2017

€2.7-€3.1bn

€2.8-€3.1bn

€0.6-€1.0bn

€1.2-€1.45bn€3.1bn €3.1bn

€0.9bn

€1.4bn

EBIT1 vs. guidance EBIT1 vs. guidance Adj. Net income1 vs. guidanceAdj. Net income1 vs. guidance Deleveraging achieved:significant reduction of END

Deleveraging achieved:significant reduction of END

Guidance range

33

E.ON standalone

Deleveraging creates balance sheet headroom

Economic net debt

FY 17

~4.4x EBITDA

FY 16

26.3

~5.3x EBITDA

19.2

~3.9x EBITDA

Q2 17

21.5

~5

1. Nord Stream 1 stake.

+ Nuclear fuel tax

+ Accelerated Book Build

+ Nuc. decommissioning cost savings

+ Additional measures

~2.9

~1.4

~0.6

~0.6

+ Monetization of Uniper shares

+ Transfer of NS11 into CTA

+ Nuc. decommissioning cost savings and additional measures

Mid-term target

~4.0xEBITDA

headroomPost deleveraging

~3.0x EBITDA

FY 17

19.2

~3.9x EBITDA

Hybrid cancelled

Scrip dividendcancelled

€ bn

Achieved (€ bn) To be finalized (€ bn)

34

E.ON standalone

Capex split 2018-2020

Capex1 2018Capex1 2018

1. Capex net of divestments.

1.5

1.0

1.0

Energy Networks Renewables Customer Solutions

~€ 3.5bn ~€ 9.5bn

Increase in capex drives the EBIT growth target

Segments have to compete for capital and against other uses of funds

Strict adherence to return targets (ROCE 8-10%)

Growth

Focus

Discipline

35

E.ON standalone

Capex1 2018-2020Capex1 2018-2020

49%

26% 25%

Sustainable performance - Phoenix & beyond

Fokus (Ger) & SWAT (UK) next wave

Already embarked on the next efficiency projects

• Focus on business operations• Fokus (CS Ger) & Swat (CS UK) target to fully

off-set margin pressure• Make business model future proof

2018 2019 beyond 2020

2020

Restructuring costs (upfront)

EBIT contribution

Gross savings to offset margin

pressure

~€120m savings~€120m savings

~£100m savings~£100m savings

Performance culture to be sustainably embedded across all functions

• Focus on central overhead and support functions• Digitalization to improve processes and customer

experiences

Phoenix measures fully implemented

20182017

~130m

~270m

Total

400m

36

E.ON standalone

Group guidance FY 2018

EBIT 2017EBIT 2017

Adj. Net Income 2017Adj. Net Income 2017

1. Adjusted for non operating effects. 37

3.0

2.8

1.51.3

EBIT1 (€ bn)EBIT1 (€ bn)

Adj. Net Income (€ bn)Adj. Net Income (€ bn)

€3.1bn

€1.4bn

Includes ~€100m restructuring costs in Customer Solutions (UK, Germany)

2017

Act

uals

2018

Gui

danc

e

E.ON standalone

Guidance range

Delivering step by step – Attractive dividends

Absolute dividend growth 2018: Fixed Dividend

FY 2018Dividend

€0.431

FY 2017Dividend

€0.30

FY 2016 Dividend

€0.21

38

Aiming to deliver absolute annual dividend growth

1. Fixed for FY2018 (paid in 2019).

E.ON standalone

ReturnROCE1

8 – 10 %

E.ON FOCUS – medium-term framework Our basis for steering the company

1. Based on EBIT (= pre-tax), 2. OCFbIT divided by EBITDA, 3. Adjusted for non-operating effects, FY 2018 guidance range as basis for medium-term outlook 2018-2020 (CAGR), 4. Total Shareholder Return, 5. Fixed for FY2018 (paid in 2019).

CashCash conversion rate2

≥ 80 %

Executive CompensationClosely linked to EPS target achievement and relative TSR4 (in addition: share ownership obligations)

EPS3

Group+ 5-10%

Absolute dividend growth

Dividend Payout

Fixed dividend: €0.435EBIT3

Group+ 3-4%

Capital StructureStrong BBB/Baa

E.ON standalone

39

Investment highlights

From deleveraging to focused and disciplined growth

Management team with strong shareholder focusFocus

Deliver sustainable EPS growth andaiming for absolute annual dividend growthGrowth

Strict capital discipline and high-performance cultureDiscipline

40

E.ON standalone

Energy Networks


E.ON standalone

Energy Networks - The heart of E.ON

Power and gas business

Power business only

CEE &Turkey€8.5bn3

Sweden€4.0bn

Germany€10.7bn

~€23.1bn2

Regulated asset base 20171

CEE &Turkey€0.4bn

Sweden€0.5bn

~€1.9bn

Germany€1.1bn

EBIT4 2017

25 32

71

2719 12

CEE & Turkey5SwedenGermany

Market share (%)

349490

137 2

CEE & Turkey

45

SwedenGermany

60

GasPower

Grid length (‘000 km) 1

∑ Grid length: 976

∑ Grid length: 107

1. 100% view for Slovakia and Turkey, 2. Differences may occur due to rounding, 3. In Hungary the RAB has been increased in 2017 by €2.8bn due to a system change towards replacement costs. It was €1.5bn before, 4. Adjusted for non operating effects, 5. Arithmetic average.

~75% of group core

E.ON standalone

42

Energy Networks - Higher capex leads to power RAB growth

2017 2020 2017 2020 2017 2020

Czech RepublicSwedenGermany

+6-10% +11-15% +12-16%

~€1.4bn~€3.8bn~€8bn

Power RABPower RAB1Power RAB1

E.ON standalone

431. Based on constant FX rates.

Multi-decade RAB growth engine

• Main driver is additional replacement investments

• Conservative assumptions on Renewables and E-mobility roll-out

• Acceleration of Renewables build-out• Smart meter• E-mobility• Electrical heating• Digital layer & fully digital equipment

Cautious planningCautious planning

Potential upsides to “new normal”-levelPotential upsides to “new normal”-level

+€300m –€400m

€1.4bn

2016 2017

€1.4bn

€1.7 – 1.8bn

Beyond 2020“New normal”

Disciplined & gradual ramp-up

Disciplined & gradual ramp-up

Energy Networks capex1

1. Excluding Slovakia and Turkey.

E.ON standalone

44

Major transformation in Energy Networks

Single layer infrastructure (energy)

Physical linear network

Centralized system

Infrastructure ecosystem

Decentral, connected multi-layer infrastructure

More (semi-) autonomous local energy systems

Energy Network player

Energy network operatorFrom

Holistic system providerTo

Phys

ical

la

yer

Dig

ital l

ayer

Com

mun

i-ca

tion

laye

r

Data centerEMS Platforms

Network control center

Smart Home

Asset control systems

VPP

Local grid control

Smart Meter

Cloud

AntennaWifi

Block chain

Future energy network system will need to combine different layers of infrastructure

E.ON standalone

45

Turkey with extraordinary high RAB growth

Established in 3 high-growth regions

Leading electricity network operator: − 10.5 m connections− 220,000 km network length

(20% of market)

Constructive regulatory environment:− Allowed WACC for 2016-2020

regulatory period has been increased to 13.6% from 11.9% (pre-tax, real)

− Incentives to outperform capex, opex, and theft & loss allowances

High network investment due to:− Strong power demand growth of

>4% p.a.− Need for significant network

modernization

in bn TL, nominal

Regions

Target to more than double 2016 RAB by 2020

Target to more than double 2016 RAB by 2020

Downstream BusinessDownstream Business Market & RegulationMarket & Regulation RAB developmentRAB development

Strongly growing market with highly attractive returns

AnkaraIstanbul

Adana

>2x

3.8

5.3

2016 2017 2020

E.ON standalone

46

Operational excellence – digitization in practice

Transparent and effective capex allocation Providing a smooth user experience

Asset replacement decisions Asset replacement decisions Digital workforceDigital workforce

Data driven decisions to prioritize replacement

activities

Low double digit million € added value p.a. potential after full roll-out

Expert judgement and local experience

Predictive maintenance Predictive maintenance Conventional approachConventional approach

6-12 % productivity gains

Introduce digital application used by every field worker comprising all functionalities necessary in the daily work Introduce digital application used by every field worker

comprising all functionalities necessary in the daily work

Tool

Tool

Impa

ct

Impa

ct

E.ON standalone

47

Aspiration to develop the platform for energy transition

Further decentralization and

fragmentation lead to a need for

local rebalancing

Further decentralization and

fragmentation lead to a need for

local rebalancing

Transformative PlatformTransformative Platform

P2PTrading

Flex-Markets

LocalEnergy System

RegionalEnergySystem

Increasing system responsibility assumed by regional or local network operator

Increasing system responsibility assumed by regional or local network operator

Energy transition is and will be happening essentially at the DSO-level

E.ON standalone

48

Opportunities in adjacent businesses - Broadband

Growing from existing assetsGrowing from existing assets

E.ON's existing fiber-optic infrastructureE.ON's new fiber-optic infrastructure

A

Local transformer station

Fiber-optic cables in every street and to every household

Network operations center

Business building

Mobile cell tower

Telco X'sbackbone

Enterprise customer's data center

Point of Presence (Switch between backbone and access network)

Extension of existing businessExtension of existing business

Entering Fiber-to-the-Home (FttH) marketEntering Fiber-to-the-Home (FttH) marketB

New business concept in developmentNew business concept in development

E.ON standalone

49

• Lower allowed returns reflect lower bond yields

• Benefits from maturing legacy bonds to be attributed to Energy Networks driving EPS growth

• Lower allowed returns reflect lower bond yields

• Benefits from maturing legacy bonds to be attributed to Energy Networks driving EPS growth

EBIT outlook – Stability despite two major regulatory reviews

German pension cost pass through

Positive one-off

2017 2018 2019 2020

€1.9bn

Lower allowed returns

Higher RAB

+5-10% p.a.

€0.60 –0.70

2018 2020

EPS growth

E.ON standalone

50

Customer Solutions


E.ON standalone

Energy sales is the anchor of customer solutions

1. Excluding Turkey, 2. Total Contract Value, 3. Adjusted for non operating effects, 4. B2C customers in Germany and UK.

E.ON’s market positionsE.ON’s market positions

Customer

B2B

B2C

B2M

Customer focused portfolioCustomer focused portfolio

Heat &New

Solutions

EnergySales

EBIT3 2017 €526m Energy Sales EBIT4

B2C ~75%

B2B~25%

Energy Sales is the anchor businessEnergy Sales is the anchor business

High customer loyaltyHigh customer loyalty

Customer tenure4

2-5y> 5y

< 2yB2M/Heat: 10% market share in Germany & Sweden

B2B Solutions: ~€1bn TCV2 in 2017

Top 3

Top 2

Top 3

Top 3Top 3

Top 3

Top 10

Top 3

Energy Sales: 22m1 customers in 8 countries

E.ON standalone

52

7

6

5

4

Q4 17Q3 17Q2 17Q1 17Q4 16Q3 16Q2 16Q1 16

UK B2C customersUK SVT customers

2013 2014 2015 2016 2017

6

8

4

2

UK

E.ON is leading the transformation of energy sales

Standard tariff customer numbers decliningStandard tariff customer numbers declining

Cust

omer

ac

coun

tsin

m

2016 year of peak margins12016 year of peak margins1

% m

argi

n Rigorous cost focusReduce cost to acquire and cost

to serve dramatically

Attractive productsInnovative and green tariffs

complemented by smart meter rollout

Focused sales channels

Protecting revenues

Turnaround in customer numbers

Increasing EBIT into

next decade

6.3m

1. Final figure for 2017 not yet available: ~5%.

E.ON standalone

53

Increase customer attraction while reducing cost to acquire

Physical channel Digital channel

Product offering and selection of sales channels lead to…Product offering and selection of sales channels lead to…

…at the same time reducing costs to acquire…at the same time reducing costs to acquire

…increase in customer numbers……increase in customer numbers…

20252017

Sale

s ch

anne

lsTa

riff i

nnov

atio

ns

200k innovative tariffs sold since June 2017

> 5,000 E.ON Plus products (devices as add-on to tariffs) sold

18% of our customer base with add-on services

+100% value-add services contracts in 2017

Scale sales cooperations with big retailers (e.g. Lidl) • Innovative tariff offering• Focus on earning customers’ loyalty

Sales push in digital• From broker site to own website e.g. GER, UK, SWE

Home move journey as acquisition channel

~22m

~24m

E.ON standalone

54

Closing the gap - Cost to serve to be reduced dramatically

Components of cost to serve1

Servicingand

Backoffice

Debtresolution

Metering & Installation

Other

SWAT

Fokus

Smart Meter Rollout

E.ON E.ON ambition

~€120m savings~€120m savings

€/customer account

~£100m savings~£100m savings

Cost to serve ambitionEfficiency programsMeasures to reduce cost to serve

1. Example UK

Tackling cost to serve and overall cost efficiencies to support earnings

E.ON standalone

55

Re-inventing our customer business with the digital attacker

Cost efficiency

Cost efficiency

Superior servicesSuperior services

Innovative propositionInnovative proposition

<€ 10Market Leading

Cost to Serve

Synergiesacross regions

1-clickCustomer

journey

+50 NPS1

Quick response &

accurate billing

Singleplatform for

tariff innovations

Datadriven

propositions

Fasttime to market

Selflearning

functionality

Market leading

cost of change

Gradual replacement of legacy systems – customer focused with proven stability

1. Net Promoter Score

E.ON standalone

56

New Solutions - Strive for leadership with innovative products


B2BB2B B2MB2M B2CB2C

PV + battery

Smart home

Smart meter

PV + battery

Smart home

Smart meter

E-mobilityE-mobility

Prod

uct o

ffer

ing

Prod

uct o

ffer

ing

Am

bitio

n 20

25A

mbi

tion

2025

EBIT1 ~€250-300 mEBIT1 ~€250-300 m EBIT1 ~€200 mEBIT1 ~€200 m EBIT1 >~€50 mEBIT1 >~€50 m

EBIT margin > 10%EBIT margin > 10%

District heating

City quarter solutions

Integrated city energy solutions

District heating

City quarter solutions

Integrated city energy solutions

Decentral generation

Energy efficiency

Flexibility & storage

Digital energy solutions

Decentral generation

Energy efficiency

Flexibility & storage

Digital energy solutions

E.ON standalone

57

~>2 x

2025

~2 x

2016 2020…2017

Become a leading Energy Service Company

B2B - E.ON to become a leading Energy Service Company in Europe

Ambitious organic growth of TCV1 … Ambitious organic growth of TCV1 … …to translate into EBIT2 over time…to translate into EBIT2 over time

1. Total Contract Value, 2. Adjusted for non operating effects.

Decentral generationDecentral

generationEnergy

efficiencyEnergy

efficiencyFlexibility &

storageFlexibility &

storageDigital energy

solutionsDigital energy

solutions

~ €250-300m

2016 2017 2020 2025

~+25% CAGR

E.ON standalone

58

B2M – E.ON is a reliable partner for cities and communities

E.ON to benefit from market trends and investmentsE.ON to benefit from market trends and investments

1. Germany, Sweden, UK, 2. Capex net of divestments, including investments for Högbytorp, 3. Adjusted for non operating effects.

Investments with low risk and high returnInvestments with low risk and high return

Capex2 2018-2020ROCE > 10%

Stable (long-term) earnings

15-20 year contracts

~€200m

2017 2025

UKSweden Germany

Heat EBIT3 €m

~€ 800m

ectogrid™

Högbytorp, Stockholm

> €250m capex project close to Stockholm, COD 2019

100 MW CHP district heating network extension and biogas as part of a circular economy project

Can provide heating and cooling for an entire city, optimising excess heating and cooling

First ectogrid under construction in Lund, Sweden

Patented global solution - available to be sold and integrated in other cities

Project examplesProject examples

E.ON standalone

59

B2C - E.ON drives the electrification of the home and mobility

PV + batteryE.ON SolarCloud

E.ON Plus + smart meters

E-mobilitysolutions

Home heating

Example: PV + battery growth storyExample: PV + battery growth story

Translating into decent EBIT in the next decadeTranslating into decent EBIT in the next decade

2025 beyond2017

~€50m

E.ON product offering for the electrification of homeE.ON product offering for the electrification of home

…2015 2016 20252017

~5x

~3x

EBIT1 €m

PV + battery units sold

E.ON – the fastest growing solar

company in Germany


E.ON standalone

60

Temporary high investments for smart meter & ITTemporary high investments for smart meter & IT

Disciplined investment plan to support growth opportunities

Capex1 2018-2020 €2.4bn

1. Capex net of divestments, 2. Adjusted for non operating effects.

€526m

20202018

Restructuringcharges

2017 … 2025

Heat & New

Solutions

Customer Solutions EBIT2 2017-2020

Medium-term EBIT developmentMedium-term EBIT development

Energy Sales

Heat & B2B projects

Smartmeter

IT &efficiency

Other

E-mob

Partially temporary

Partially temporary

Asset-backedinvestments

Asset-backedinvestments

E.ON standalone

61

Renewables


E.ON standalone

Position of strength

~4 GW1 ~3 GW1

Arkona

Rampion

Morcone

Under construction:~ 1GW

1.4 GW1

0.6 GW1

0.3 GW1

0.2 GW1

0.2 GW1

0.2 GW1

Stella

€0.5bn EBIT 2017(~18% of core EBIT)

~95% Long-term contracted or hedged until 2020

Strong track record with ~7 GW1 delivered

Active in 3 technologies and batteries

1


1. Gross capacity

E.ON standalone

63

Growth trend unbroken – RES to dominate global power generation

7 GW

59 GW

Offshore Utility-scale PV

44 GW

Onshore

38 GW

CCGT

17 GW

Nuclear

Capacity additions forecastAnnual build rate avg. 2018-’301Capacity additions forecastAnnual build rate avg. 2018-’301

~300 turbines per week~300 turbines per week

Strong cost decrease

Industry trendsIndustry trends Bid prices per technology(EUR/MWh)

Bid prices per technology(EUR/MWh)

103

55

2015 20172016

43

66

109

2015 20172016

Offshore Onshore

merchant2Decarbonization

1. Bloomberg New Energy Outlook 2017, 2. German Power Baseload forward 2019 (08.03.2018).

E.ON standalone

64

E.ON aims to grow at scale in Onshore

Onshore

+20-25%

Capitalize on attractive ~8 GW pipeline

~5 GW1

2017 2020

Onshore

+20-25%

Capitalize on attractive ~8 GW pipeline

~5 GW1

2017 2020

Offshore

+40%2

Leverage existing options in Europe

~1 GW1

1. Operated capacity, 2. ~400MW net capacity addition. Gross capacity addition: 800MW.

• From boutique to industrial

• Capex light

Solar PV

E.ON standalone

65

High share of contracted revenues provides stability and visibility

20182017 20202019

• High earnings stability

• Secure long-term stable off-take agreements for new investments

• Revenue optimization for assets at the end of support scheme (rolling 3 year hedging)

• Active commercial risk management/value optimization incl. congestion hedging, day-ahead/intra-day optimization

Long-term contractedHedgedMerchant

High earnings stability and visibilityHigh earnings stability and visibility Clear guiding principles Clear guiding principles

~75% long-term contracted1

~95% hedged or long-term contracted1

1. Average 2017-2020

E.ON standalone

66

Integral part of E.ON - Modular value crystallization

Develop & Sell & (Operate)Develop & Sell & (Operate) Build & Sell & OperateBuild & Sell & Operate Build & KeepBuild & Keep

• Rapid monetization of value• Capex light • Additional value from long-term

O&M services

• Rapid monetization of value• Capex light • Additional value from long-term

O&M services

• Reduce exposure in certain geographies

• Additional value from long-term O&M services

• Reduce exposure in certain geographies

• Additional value from long-term O&M services

• Resilient long-term cash flows• Strong operational capabilities ensure

E.ON being an efficient asset owner

• Resilient long-term cash flows• Strong operational capabilities ensure

E.ON being an efficient asset owner

AftonMagic Valley 12

Amrumbank

Deal value: ~$100m1

Year: 2016Sold: 100%Cap.: 50 MW

Deal value: ~$100m1

Year: 2016Sold: 100%Cap.: 50 MW

Deal value: ~$650mYear: 2014Sold: 80%Cap.: 405 MW

Deal value: ~$650mYear: 2014Sold: 80%Cap.: 405 MW

Capex: ~€1bnCOD: 2015Cap.: 302 MW

Capex: ~€1bnCOD: 2015Cap.: 302 MW

Case

stu

dies

Case

stu

dies

Wildcat 13

1. InfraRed Capital Partners, 2. Magic Valley 1: 203MW, 3. Wildcat 1: 202MW.

E.ON standalone

67

Technical/digital excellence to drive down LCOE1

Extension of life-time

Improved load factors and availability

Transparent and effective capex and opex allocation

1

Predictive maintenance roll-outPredictive maintenance roll-out

2017 2018 2019 2020

10%60%

Self-learning algorithms to optimize

wind park layout in order to increase

production and reduce wake effects

Self-learning algorithms to optimize

wind park layout in order to increase

production and reduce wake effects

Array layout optimizerArray layout optimizer

Turbine selection tailored to site conditions

Data driven investment decision

Single digit yield increase

E.ON standalone

1. Levelized cost of electricity 68

Play at scale in Onshore - Attractive pipeline in Tier 1 geographies

Gross capacity additions 2018-2020 (MW)Gross capacity additions 2018-2020 (MW) Onshore pipeline Onshore pipeline

~5.9 GW

80% PTC

100% PTC

Other

Onshore pipelineOnshore pipeline

~1.8 GW

∑~2GW

Nordic

Other EU

UK

COD2016

COD2017

COD2018

COD2019

COD2020

Onshore Offshore1, 2 New Projects(Pre- FID pipeline)

1. 2018 COD: Rampion (Gross delivery: 400 MW, EU Offshore), Stella (Gross delivery: 201 MW, US Onshore), 2. 2019 COD: Arkona (Gross delivery: 385 MW, EU Offshore), Morcone (Gross delivery: 57 MW, EU Onshore).

E.ON standalone

69

Financial Appendix


E.ON standalone

Highly stable business profile

Business profile

High share of regulated and long-term contracted earnings (~3/4 of EBITDA)

Predominantly quasi-regulated or contracted earnings in heat operations and RenewablesRemaining merchant exposure in Renewables and PreussenElektra largely hedged

Operations in Energy Networks under stable, well established frameworks in low risk markets with strong regulatory track record

FY EBITDA 20171

~3/4 from regulated/long-term contracted businesses2

1. Adjusted for non operating effects, representation in pie charts excluding Corporate Functions/Other; total figure including Corporate Functions/Other, 2. Including Energy Networks and a portion of Renewables and Heat.

56%

16%

13%

15% Energy Networks

Renewables

Customer Solutions

PreussenElektra (non-core)

€5.0bn

E.ON standalone

71

E.ON today – Regulated Energy Networks at the heart

Key financials2017

Group EBIT1

Adj. Net Income1

€1.4bn

€3.1bn

Customer Solutions

€1.9bn€1.9bn€0.5bn€0.5bn €0.5bn€0.5bn

1. Adjusted for non operating effects, 2. Percentage as of Group EBIT.

Core EBIT1 2017 Share of regulated/long-term contracted

businesses2

Energy Networks Renewables

Regulated/contracted

Merchant

Strong pillars with Customer Solutions and Renewables

E.ON standalone

72

2017 yet another year of strong delivery

HighlightsHighlights Key Financials1Key Financials1

€ m


EBIT Adj. Net Income

Economic Net Debt-7.1

FY 2017

19.2

FY 2016

26.3

EBIT and Adj. Net Income at the upper end of the guidance range

Adj. Net Income + 58% versus FY 2016

Economic net debt reduced to €19.2bn

Dividend 2017 of €0.30/share confirmed

€ m

€ bn

Guidance range EBITDA €2.8-3.1bn, Adj. Net Income 1.2-1.45bn

FY 2017

3,074

FY 2016

3,112+58%

FY 2017

1,427

FY 2016

904

E.ON standalone

73

H1 2018 – Financial Appendix


E.ON standalone

Financial Highlights

€m H1 2017 H1 2018 % YoY

Sales 19,583 17,043 -13

EBITDA 1 2,715 2,799 +3

EBIT 1 1,767 1,942 +10

Adjusted net income 1 881 1,052 +19

OCF bIT 5,260 2,068 -61

Investments 1,314 1,414 +8

Economic net debt ² -19,248 -15,876 +18

EBIT• Energy Networks: -2% YoY reversal

of regulatory effects in Germany and tariff increases in Sweden

• Customer Solutions: +8% YoYprice increases in Germany 2017, competitive dynamics in the UK

• Renewables: +15% YoYcapacity additions in US Onshore & UK Offshore, partly offset by subsidy expiries

OCF bIT• Cash provided by operating

activities €3.2 bn below prior-year level

• Key driver: Omission of one-off effect from Nuclear Fuel Tax refund in Q2 2017

Adj. Net Income• Improves €171 m YoY

Driven by strong EBIT and profiting from refinancing benefits and stable tax rate (25%)

1. Adjusted for non operating effects, 2. Economic net debt as per 31 Dec 2017 and30 Jun 2018; Economic net debt definition takes into account the decommissioning provisions calculated with a real discount rate of 0.0% as opposed to IFRS AROs

Investments• Energy Networks: €580 m

(vs. €545 m YoY)• Customer Solutions: €209 m

(vs. €209 m YoY)• Renewables: €449 m

(vs. €528 m YoY )• Non-Core: €163 m

(vs. €7 m YoY)

E.ON standalone

75

2.1

Change in WC

-0.7

0.1

Capex

-1.4

OCF FCFCash Adjustments3

0.0

EBITDA1

2.8

1.4

Tax Payments

-0.2

Interest Payments

-0.4

OCF bIT

74%

74% CCR2 – significantly improved vs. Q1

H1 2018€ bn

1. Adjusted for non operating effects, 2. Cash Conversion Rate: OCF bIT ÷ EBITDA, 3. Net non cash effective EBITDA items incl. provision utilizations

E.ON standalone

76


Segments: Energy Networks

• Germany+ One-off effect in Q2 2018– Reversal of regulatory effects – Concession loss Hamburg– New regulatory period gas

• Sweden+ Power tariff increase– Adverse FX development

Energy NetworksEnergy Networks

251

239 254

601 565

247

Germany

H1 2018

1,087

-2%

CEE & Turkey

Sweden

H1 2017

1,070


EBIT1 € m

€m H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY

Revenue 7,208 4,766 -34 563 511 -9 856 776 -9 8,627 6,053 -30

EBITDA 1 891 848 -5 320 331 +3 358 368 +3 1,569 1,547 -1

EBIT 1 601 565 -6 239 254 +6 247 251 +2 1,087 1,070 -2 thereof Equity-method earnings 41 33 -20 0 0 - 48 68 +42 89 101 +13 OCFbIT 1,105 580 -48 305 421 +38 319 404 +27 1,729 1,405 -19 Investments 231 231 +0 147 163 +11 167 186 +11 545 580 +6

TotalGermany Sweden CEE & Turkey

Det

ails

E.ON standalone

77

Segments: Customer Solutions

Customer SolutionsCustomer Solutions HighlightsHighlights

• Germany Sales+ Price increases in 2017+ Lower gas procurement costs– Restructuring costs

• UK – Restructuring costs– Increased wholesale prices– Competitive dynamics– Price caps (PPM2, vulnerable customers)+ Price increases in 2017

146 140

230 202

64 135

Other

+8%

Germany Sales

H1 2018

477

UK

H1 2017

440

EBIT1 € m

1. Adjusted for non operating effects, 2. Prepayment Meter

€m H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY

Revenue 3,683 3,555 -3 3,723 3,981 +7 3,795 3,943 +4 11,201 11,479 +2

EBITDA 1 78 150 +92 279 244 -13 234 225 -4 591 619 +5

EBIT 1 64 135 +111 230 202 -12 146 140 -4 440 477 +8 thereof Equity-method earnings 0 0 - 0 0 - 7 4 -43 7 4 -43 OCFbIT -147 -112 +24 282 20 -93 291 231 -21 426 139 -67 Investments 9 10 +11 97 92 -5 103 107 +4 209 209 +0

TotalUKGermany Sales Other

Det

ails

E.ON standalone

78

• Offshore/Other+ UK: Capacity additions (Rampion)– Lower wind yields

• Onshore/Solar+ US: Capacity additions (Bruenning’s Breeze, Radford’s Run)– Subsidy expiries

Segments: Renewables

RenewablesRenewables HighlightsHighlights

77 73

128 163

+15%

Offshore/Other

Onshore/Solar

H1 2018

236

H1 2017

205

EBIT1 € m


€m H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY

Revenue 389 452 +16 321 289 -10 710 741 +4

EBITDA 1 182 151 -17 204 245 +20 386 396 +3

EBIT 1 77 73 -5 128 163 +27 205 236 +15 thereof Equity-method earnings 16 17 +6 OCFbit 237 387 +63 Investments 528 449 -15

Onshore Wind / Solar Offshore Wind / Others Total

Det

ails

E.ON standalone

79

Non-Core business

Non-CoreNon-Core HighlightsHighlights

271 244

-20-66

+9%

GenerationTurkey

PreussenElektra

H1 2018

205 224

H1 2017

• PreussenElektra– Positive one-off effect relating to court case in Q2 2017– Lower achieved power prices+ Higher volumes due to plant outages in 2017

• Generation Turkey+ Book loss from asset sale in Q1 2017+ Operational improvements

PreussenElektra: Hedged Prices (€/MWh) as of 30 June 2018

EBIT1 € m


33

29

26

322017

2018

2020

2019 79%

6%

100%

Det

ails

100% €m

H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY H1 2017 H1 2018 % YoY Revenue 891 601 -33 0 0 - 891 601 -33

EBITDA 1 364 294 -19 -66 -20 +70 298 274 -8

EBIT 1 271 244 -10 -66 -20 +70 205 224 +9 thereof Equity-method earnings 39 29 -26 -66 -20 +70 -27 9 +133 OCFbIT 3,073 129 -96 0 0 - 3,073 129 -96 Investments 7 9 +29 0 154 - 7 163 -

PreussenElektra Generation Turkey Total

E.ON standalone

80

Adjusted Net Income

€m H1 2017 H1 2018 % YoY

EBITDA 1 2,715 2,799 +3

Depreciation/amortization -948 -857 +10

EBIT 1 1,767 1,942 +10

Economic interest expense (net) -384 -330 +14

EBT 1 1,383 1,612 +17

Income Taxes on EBT 1 -346 -403 -16

% of EBT 1 -25% -25% -

Non-controlling interests -156 -157 -1

Adjusted net income 1 881 1,052 +19


E.ON standalone

81

Reconciliation of EBITto IFRS Net Income


€m H1 2017 H1 2018 % YoY

EBITDA 1 2,715 2,799 +3

Depreciation/Amortization/Impairments -948 -857 +10

EBIT 1 1,767 1,942 +10

Reclassified businesses of Renewables -198 -227 -15

Economic interest expense (net) 291 -294 -201

Net book gains 273 855 +213

Restructuring -176 -26 +85

Mark-to-market valuation of derivatives -346 840 +343

Impairments (net) 0 0 -

Other non-operating earnings 2,791 -75 -103

Income/Loss from continuing operations before income taxes 4,402 3,015 -32

Income taxes -494 -203 +59

Income/loss from continuing operations 3,908 2,812 -28

Income/loss from discontinued operations, net 126 96 -24

Net income/loss 4,034 2,908 -28

E.ON standalone

82

Cash effective investments by unit


€m H1 2017 H1 2018 % YoY

Energy Networks 545 580 +6

Customer Solutions 209 209 +0

Renewables 528 449 -15

Corporate Functions & Other 27 16 -41

Consolidation -2 -3 -50

Non-Core 7 163 -

Investments 1,314 1,414 +8

E.ON H1 2018 results

E.ON standalone

83

Economic Net Debt1

1. Economic net debt definition takes into account the decommissioning provisions calculated with a real discount rate of 0.0% as opposed to IFRS AROs, 2. Net figure; does not include transactions relating to our operating business or asset management

€m 31 Dec 2017 30 Jun 2018

Liquid funds 5,160 6,570

Non-current securities 2,749 1,733

Financial liabilities -13,021 -10,889

Adjustment FX hedging ² 114 118

Net financial position -4,998 -2,468

Provisions for pensions -3,620 -2,854

Asset retirement obligations -10,630 -10,554

Economic net debt -19,248 -15,876

E.ON standalone

84

Economic interest expense (net)

€m H1 2017 H1 2018 Difference

(in € m)

Interest from financial assets/liabilities -349 -293 +56

Interest cost from provisions for pensions and similar provisions -41 -31 +10

Accretion of provisions for retirement obligation and similar provisions -30 -40 -9

Construction period interests¹ 18 12 -5

Others 20 22 +2

Net interest result -383 -330 +53

1. Borrowing cost that are directly attributable to the acquisition, construction or production of a qualified asset. Borrowing cost are interest costs incurred by an entity in connection with the borrowing of funds. (Interest rate: 5.47%)

E.ON standalone

85

0.3

≥2026

4.8

2025

0.0

2024

0.6

2023

0.4

2022

0.1

2021

0.8

2020

1.4

2019

1.1

2018

GBP USDEUR OtherJPY

Financial Liabilities

Split Financial Liabilities€ bn

30 Jun 2018

Bonds -9.2

in EUR -4.0

in GBP -3.9

in USD -0.9

in JPY -0.2

in other denominations -0.2

Promissory notes -0.3 Commercial papers 0.0 Other liabilities -1.4

Total -10.9

Maturity profile (as of end H1 2018)1

€ bn

1. Bonds and promissory notes issued by E.ON SE and E.ON International Finance B.V. (fully guaranteed by E.ON SE)

E.ON standalone

86

E.ON Investor Relations contacts

T +49 (201) 184 [email protected]

Alexander Karnick T +49 (201) 184 28 38Head of Investor Relations [email protected]

Martina Burger T +49 (201) 184 28 07Manager Investor Relations [email protected]

Dr. Stephan Schönefuß T +49 (201) 184 28 22Manager Investor Relations [email protected]

Andreas Thielen T +49 (201) 184 28 15Manager Investor Relations [email protected]

87

Financial calendar & important links

Financial calendar

November 14, 2018 Quarterly Statement: January – September 2018

March 13, 2019 Annual Report 2018

May 13, 2019 Quarterly Statement: January – March 2019

May 14, 2019 2019 Annual Shareholders Meeting

August 7, 2019 Half-Year Financial Report: January – June 2019

November 13, 2019 Quarterly Statement: January – September 2019

Important links

Presentations https://www.eon.com/en/investor-relations/presentations.html

Facts & Figures 2018 https://www.eon.com/content/.../presentations/facts-and-figures-2018.pdf

Annual Reports https://www.eon.com/en/investor-relations/financial-publications/annual-report.html

Interim Reports https://www.eon.com/en/investor-relations/financial-publications/interim-report.html

Shareholder Meeting https://www.eon.com/en/investor-relations/shareholders-meeting.html

Bonds / Creditor Relations https://www.eon.com/en/investor-relations/bonds.html

Transaction Website: http://www.energyfortomorrow.eu/

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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 to abide by the limitations set outin this document as well as any limitations set out on the webpage of E.ON SE on which this presentation has been made available.This document is being presented solely for informational purposes. It should not be treated as giving investment advice, nor is it intended to provide the basis for anyevaluation or any securities and should not be considered as a recommendation that any person should purchase, hold or dispose of any shares or other securities.The information contained in this presentation may comprise financial and similar information which is neither audited nor reviewed and should be consideredpreliminary and subject to change.Some of the information presented herein is based on statements by third parties. No representation or warranty, express or implied, is made as to, and no relianceshould be placed on, the fairness, accuracy, completeness or correctness of this information or any other information or opinions contained herein, for any purposewhatsoever.This presentation may contain forward-looking statements based on current assumptions and forecasts made by E.ON management and other information currentlyavailable to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financialsituation, development or performance of the company and the estimates given here. E.ON does not intend, and does not assume any liability whatsoever, to updatethese forward-looking statements or to conform them to future events or developments.Neither E.ON nor any respective agents of E.ON undertake any obligation to provide the recipient with access to any additional information or to update thispresentation or any information or to correct any inaccuracies in any such information.Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercialstandards. As a result, the aggregate amounts (sum totals or interim totals or differences or if numbers are put in relation) in this presentation may not correspond in allcases to the amounts contained in the underlying (unrounded) figures appearing in the consolidated financial statements. Furthermore, in tables and charts, theserounded figures may not add up exactly to the totals contained in the respective tables and charts.

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