First Nine Months 2012 Results. Cleaner & better energy. Johannes Teyssen, CEO Marcus Schenck, CFO November 13, 2012

Transcription

1 First Nine Months 2012 Results Cleaner & better energy Johannes Teyssen, CEO Marcus Schenck, CFO November 13, 2012

2 Outlook 2012 and medium-term targets Outlook 2012: Confirmed EBITDA 1 : bn Underlying net income: bn Dividend: 1.1 /share Mid-term targets: Under review 1. Adjusted for extraordinary effects 2. Based on number of shares outstanding (1.905 billion) Outlook 2012 confirmed; Mid-term targets under review 1

3 Commodity market environment Power demand YoY variation last available month European wholesale power - next-year baseload forwards 0% -4% -8% -12% -16% Germany Spain Italy Fuel and CO2 prices German clean spark and dark spreads next-year forwards Very weak demand, falling power prices and spark spreads 2

4 First nine month 2012 financial highlights EBITDA 1 : 8.8bn (+35%) EBIT 1 : 6.1bn (+64%) Underlying net income 1 : 4.0bn (+155%) Underlying EPS 1 2 : 2.12 /share Operating cash flow: 6.8bn (+52%) Economic net debt: bn 1. Adjusted for extraordinary effects 2. Based on number of shares outstanding (1.905 billion) Strong earnings growth in fist nine months

5 Business update Key developments Renewables Sale of 50% stake in 433MW US onshore wind Overall, 630 MW capacity additions in 2012 Exploration & Production Elgin Franklin - restart planned for H Start of operation of Skarv still foreseen for December 2012 Generation Existing Datteln blocks (I-III) allowed to run until 2014 Waldeck expansion on hold Impairments Especially challenging environment in Central European power & gas market Political intervention in Spain and the Netherlands taking its toll Further strategy execution in continued difficult environment 4

6 Key drivers of group EBITDA 1,2 development First nine months in billion EBITDA 9M 2011 Generation: Nuclear exit Gas: Wholesale 0.2 Gas: Revaluation of participations 0.1 E.ON 2.0: Controllable cost reduction 0.1 Region Germany: One-off effect from provisions 0.1 Region Russia: Increased generation capacity -0.3 Power: Price and volume effects -0.3 Generation: Nuclear fuel tax -0.1 E&P: Mainly lower production volumes -0.1 Gas: OGE disposal -0.1 Gas: Lower storage optimization Other EBITDA 9M Adjusted for extraordinary effects 2. Individual effects rounded Gazprom settlement and absence of nuclear one-off still main drivers

7 E.ON Group From EBITDA 1 to net income (1/2) First nine months in million /- % EBITDA 1 8,817 6, Depreciation/Amortization/Impairments -2,703-2,816 - EBIT 1 6,114 3, Economic interest expense (net) -1,022-1,349 - Net book gains 190 1,250 - Restructuring and cost-management expenses Mark-to-market valuation of derivatives Impairments (net) Other non-operating earnings 117-1,442 - Income/Loss from continuing operations before income taxes 3,526 1, Economic interest expense (+327) For details see chart 29 Net book gains (-1,060) Prior year profiting from book gains on sale of Gazprom shares and the Central Networks disposal Restructuring (+160) 1. Adjusted for extraordinary effects 6

8 E.ON Group From EBITDA 1 to net income (2/2) First nine months in million /- % Income/Loss from continuing operations before income taxes 3,526 1, Income taxes Income tax rate (in %) Income/Loss from continuing operations 2,999 1, Income/Loss from discontinued operations, net Net income 3,026 1, Of which Attributable to shareholders of E.ON AG 2, Non-controlling interests Income tax rate Low income tax rate driven by earnings development, especially in Exploration & Production and by release of provisions 1. Adjusted for extraordinary effects 7

9 E.ON Group Underlying net income 1 First nine months in million /- % EBITDA 1 8,817 6, Depreciation/Amortization recognized in EBIT 1 2,703 2,816 - Economic interest expense (net) -1,022-1,349 - EBT (earnings before tax) 1 5,092 2, Income taxes on EBT % of EBT Non-controlling interests Underlying net income 1 4,035 1, Adjusted for extraordinary effects 8

10 Operating cash flow Reconciliation 1 First nine month in billion Operating Cashflow 9M/2011 EBITDA -1.5 Generation: nuclear carve out Gas: revaluation of participations Gas storage: higher net extraction 2012 Generation UK: lower coal inventory Russia & Czech Republic: one-off regulation effects UK: pension funding Gas: partial repayment of MEGAL fine 0.2 Group: lower interest payments 0.3 Other / incl. Working Capital movements Operating Cashflow 9M/2012 Big distortions of cash flow now resolved 1. Individual effects rounded

11 E.ON Group Economic net debt September 30, 2012, in billion Dec 31, 2011 Sep 30, 2012 Net financial position: 18.0 Net financial position: , Investments Dividends Operating cash flow Divestments Pension obligations Other Significantly improved compared to H1 status 10

12 Dilutive effect of disposals Disposals 2012 like-for-like EBITDA Planned Realized Like-for-like 2012 EBITDA about 1.1bn lower than reported 11

13 Appendix

14 E.ON Group Financial highlights First nine months in million /- % Sales 93,629 77, EBITDA 1 8,817 6, EBIT 1 6,114 3, Underlying net income 1 4,035 1, Operating cash flow 6,827 4, Investments 4,334 4, Economic net debt -35,585-36, Adjusted for extraordinary effects 2. Change in absolute terms 3. As of December 31 13

15 E.ON Group EBITDA 1 and EBIT 1 by segments First nine months in million EBITDA 1 EBIT /-% /- % Generation 1,740 1, , Renewables 906 1, Optimization & Trading 1, , Exploration & Production Germany 1,935 1, , Other EU countries 1,558 1, ,062 1,068-1 Russia Group Management / Other Group total 8,817 6, ,114 3, Adjusted for extraordinary effects 14

16 EBITDA 1 by unit Generation First nine months in million /- % Nuclear Steam CCGT Other/Consolidation EBITDA 1 1,740 1, Main effects (in bn): Nuclear (+0.7) Absense of prior year nuclear one-off (+1.5) Price and volume effect (incl. lower volumes due to shut downs of Isar 1 and Unterweser, which produced in Q1 2011) (-0.7) Higher nuclear tax payments (-0.3) CCGT (-) First time contribution from new capacities Lower production and ancillary service in Italy Steam(-) Mainly higher margins from Spanish and French coal plants overcompensating lower internal transfer prices 1. Adjusted for extraordinary effects 15

17 EBITDA 1 by unit Renewables First nine months in million /- % Hydro Wind, solar and others EBITDA , Main effects (in bn): Hydro (-0.1) Lower prices in Nordic and Germany partly offset by overall higher volumes [volumes in Italy and Spain down; volumes in Germany and Nordic up] Wind and others (-) Higher volumes mainly due to new capacity Positive prior year one-off not repeated Lower prices in UK 1. Adjusted for extraordinary effects 16

18 EBITDA 1 by unit Optimization & Trading First nine months in million /- % Optimization 1, Proprietary Trading Infrastructure shareholdings / other / consolidation EBITDA 1 1, Main effects (in bn): Optimization (+1.5) Substantially improved profitability in gas wholesale mainly as a result of contract renegotiations (+0.9) Improved margin power optimization, mainly in outright portfolio (+0.5) Infrastructure shareholdings / other / consolidation (-) Revaluation of participations (+0.2) Deconsolidation Open Grid Europe (-0.1) 1. Adjusted for extraordinary effects 17

19 EBITDA 1 by unit Exploration & Production First nine months in million /- % Exploration & Production Main effects (in bn): North sea Lower volumes for gas and liquids only partly offset by higher prices (-0.2) Yushno Russkoje Higher prices partly offset by higher cost 1. Adjusted for extraordinary effects 18

20 EBITDA 1 by unit Germany First nine months in million /- % Distribution 1,270 1, Sales/Other EBITDA 1 1,935 1, Main effects (in bn): Distribution (+0.3) Mainly driven by higher grid revenues First impacts of initiated cost cutting 1. Adjusted for extraordinary effects 19

21 EBITDA 1 by unit Other EU countries First nine months in million /- % Distribution 905 1, Sales Other/Consolidation EBITDA 1 1,558 1,619-4 Main effects (in bn): Distribution (-0.2) UK + Italy: Disposal of Central Networks and E.ON Rete (-0.2) Sales (+0.1) UK: Performance improvement, mainly driven by strong Q1 partly offset by energy efficiency cost 1. Adjusted for extraordinary effects 20

22 EBITDA 1 by unit Russia First nine months in million /- % Russia Main effects (in bn): Russia (+0.1) Mainly driven by higher results from new units not yet productive in Adjusted for extraordinary effects 21

23 E.ON Group Economic net debt First nine months in million Sep 30, 2012 Dec 31, 2011 Liquid funds 8,364 7,020 Non-current securities 5,000 4,904 Total liquid funds and non-current securities 13,364 11,924 Financial liabilities to banks and third parties -26,464-28,490 Financial liabilities resulting from interests in associated companies and other shareholdings -1,675-1,424 Total financial liabilities -28,139-29,914 Net financial position -14,775-17,990 Fair value of currency derivatives used for financing transactions Provisions for pensions -5,437-3,245 Asset retirement obligations -17,433-17,269 Less prepayments to Swedish nuclear fund 1,750 1,595 Economic net debt -35,585-36, Net figure; does not include transactions relating to our operating business or asset management 22

24 E.ON Group Investments by unit First nine months in million /- % Generation 846 1, Renewables 1, Optimization & Trading Exploration & Production Germany Other EU countries Russia Management Group / Others Investments 4,334 4, Of which Maintenance investments Growth and replacement investments 3,752 3,

25 Financial liabilities of the E.ON Group in billion 30 Sep Dec 2011 Maturity profile (as of 30 Sep 2012) 3 Bonds in EUR in GBP in USD in CHF in SEK bn 5,0 4,0 3,0 2,0 1,0 in JPY other currencies Promissory notes Commercial Paper Other liabilities Total , EUR GBP USD CHF YEN Other 1) Thereof bonds issued by segments: September 30, 2012: 0.1bn; Dec 31, 2011: 0.3bn 2) Thereof other financial liabilities of segments: September 30, 2012: 3.2bn; Dec 31, 2011: 3.2bn 3) Bonds and promissory notes issued by E.ON AG or E.ON International Finance B.V. (fully guaranteed by E.ON AG) 24

26 E.ON Group Economic interest expense (net) First nine months in million Delta 12 / 11 Interest from financial assets/liabilities Interest cost from provisions for pensions and similar provisions Accretion of provisions for retirement obligation and other provisions Capitalised interests Other Economic interest expense (net) Net of expected return on plan-assets 2. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualified asset. Borrowing costs are interest and other costs incurred by an entity in connection with the borrowing of funds. (IR-rate: 5%) 3. Includes mainly effects from market valuation of interest derivatives and tax related interest expense.

27 Oil & Gas production in mboe 9M M /-% Njord Elgin-Franklin Babbage Rita Other UK fields Total North Sea Yuzhno Russkoye Total

28 Markets & hedging Energy markets Oil price and European gas prices Hedging (as per end September, 2012) Central Europe: Outright power hedging 2012 ~ 56 /MWh ~ 55 /MWh ~ 53 /MWh 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% European wholesale power - next-year baseload forwards Nordic: Outright power hedging 2012 ~ 44 /MWh ~ 44 /MWh ~ 43 /MWh 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = percentage band of generation hedged 27

29 E.ON Investor Relations Contact Dr. Marc Spieker Head of IR T marc.spieker@eon.com Peter Blankenhorn Regions/Sales, SRI, Retail, T Facts & Figures peter.blankenhorn@eon.com François Poullet Generation, Gas T francois.poullet@eon.com Marc Koebernick Renewables, Trading T marc.koebernick@eon.com Dr. Stephan Schönefuß Politics & regulation, Regions/Distribution T stephan.schoenefuss@eon.com Carmen Schneider Technology & Innovation, Roadshow planning & management, T Shareholder ID & Targeting carmen.schneider@eon.com 28

30 E.ON IR - Reporting calendar & important links Reporting calendar Date Event March 13, 2013 Annual report 2012 May 3, 2013 May 6, Annual Shareholders Meeting Dividend Payment May 8, 2013 Interim Report I: January March 2013 August 13, 2013 Interim Report II: January June 2013 November 13, 2013 Interim Report III: January September 2013 Important links Content Equity Story Segment Stories Annual Report Interim Reports Facts & Figures Creditor Relations Link

31 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 AG 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. 30