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

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Transcription:

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

Outlook 2012 and medium-term targets Outlook 2012: Confirmed EBITDA 1 : 10.4-11.0bn Underlying net income: 4.1-4.5bn 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

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

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: - 35.6bn 1. Adjusted for extraordinary effects 2. Based on number of shares outstanding (1.905 billion) Strong earnings growth in fist nine months 2012 3

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 H1 2013 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

Key drivers of group EBITDA 1,2 development First nine months in billion 01.01.2011-30.09.2011 6.5 1.5 EBITDA 9M 2011 Generation: Nuclear exit 2011 0.9 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 01.01.2012-30.09.2012 0.3 8.8 Other EBITDA 9M 2012 1. Adjusted for extraordinary effects 2. Individual effects rounded Gazprom settlement and absence of nuclear one-off still main drivers

E.ON Group From EBITDA 1 to net income (1/2) First nine months in million 2012 2011 +/- % EBITDA 1 8,817 6,553 +35 Depreciation/Amortization/Impairments -2,703-2,816 - EBIT 1 6,114 3,737 +64 Economic interest expense (net) -1,022-1,349 - Net book gains 190 1,250 - Restructuring and cost-management expenses -233-393 - Mark-to-market valuation of derivatives -450-692 - Impairments (net) -1.190 0 - Other non-operating earnings 117-1,442 - Income/Loss from continuing operations before income taxes 3,526 1,111 +217 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

E.ON Group From EBITDA 1 to net income (2/2) First nine months in million 2012 2011 +/- % Income/Loss from continuing operations before income taxes 3,526 1,111 +217 Income taxes -527 20 - Income tax rate (in %) 15-2 - Income/Loss from continuing operations 2,999 1,131 +165 Income/Loss from discontinued operations, net 27 13 - Net income 3,026 1,114 +165 Of which Attributable to shareholders of E.ON AG 2,727 864 +216 Non-controlling interests 299 280 +7 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

E.ON Group Underlying net income 1 First nine months in million 2012 2011 +/- % EBITDA 1 8,817 6,553 +35 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 2,388 +113 Income taxes on EBT 1-778 -503 - % of EBT 1 15 21 - Non-controlling interests -279-300 - Underlying net income 1 4,035 1,585 +155 1. Adjusted for extraordinary effects 8

Operating cash flow Reconciliation 1 First nine month in billion 01.01.2011-30.09.2011 4.5 2.3 Operating Cashflow 9M/2011 EBITDA -1.5 Generation: nuclear carve out 2011-0.2 0.4 0.2 0.1 Gas: revaluation of participations Gas storage: higher net extraction 2012 Generation UK: lower coal inventory Russia & Czech Republic: one-off regulation effects 2011 0.3 UK: pension funding 2011 0.2 Gas: partial repayment of MEGAL fine 0.2 Group: lower interest payments 0.3 Other / incl. Working Capital movements 01.01.2012-30.09.2012 6.8 Operating Cashflow 9M/2012 Big distortions of cash flow now resolved 1. Individual effects rounded

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: 14.8-36.4-36.4-35,6 +3.9-2.2-4.3 +6.8-1.3-2.1 Investments Dividends Operating cash flow Divestments Pension obligations Other Significantly improved compared to H1 status 10

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

Appendix

E.ON Group Financial highlights First nine months in million 2012 2011 +/- % Sales 93,629 77,506 +21 EBITDA 1 8,817 6,553 +35 EBIT 1 6,114 3,737 +64 Underlying net income 1 4,035 1,585 +155 Operating cash flow 6,827 4,489 +52 Investments 4,334 4,106 +6 Economic net debt -35,585-36,385 3 +800 2 1. Adjusted for extraordinary effects 2. Change in absolute terms 3. As of December 31 13

E.ON Group EBITDA 1 and EBIT 1 by segments First nine months in million EBITDA 1 EBIT 1 2012 2011 +/-% 2012 2011 +/- % Generation 1,740 1,052 +65 1,082 304 +256 Renewables 906 1,086-17 606 820-26 Optimization & Trading 1,961 531 +269 1,783 324 +450 Exploration & Production 421 564-25 241 377-36 Germany 1,935 1,677 +15 1,240 975 +27 Other EU countries 1,558 1,619-4 1,062 1,068-1 Russia 523 378 +38 384 276 +39 Group Management / Other -227-354 - -284-407 - Group total 8,817 6,553 +35 6,114 3,737 +64 1. Adjusted for extraordinary effects 14

EBITDA 1 by unit Generation First nine months in million 2012 2011 +/- % Nuclear 599-144 - Steam 971 948 +2 CCGT 237 245-3 Other/Consolidation -67 3 - EBITDA 1 1,740 1,052 +65 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

EBITDA 1 by unit Renewables First nine months in million 2012 2011 +/- % Hydro 521 654-20 Wind, solar and others 385 432-11 EBITDA 1 906 1,086-17 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

EBITDA 1 by unit Optimization & Trading First nine months in million 2012 2011 +/- % Optimization 1,375-130 - Proprietary Trading -66 - - Infrastructure shareholdings / other / consolidation 652 661-1 EBITDA 1 1,961 531 +269 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

EBITDA 1 by unit Exploration & Production First nine months in million 2012 2011 +/- % Exploration & Production 421 564-25 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

EBITDA 1 by unit Germany First nine months in million 2012 2011 +/- % Distribution 1,270 1,011 +26 Sales/Other 665 666 - EBITDA 1 1,935 1,677 +15 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

EBITDA 1 by unit Other EU countries First nine months in million 2012 2011 +/- % Distribution 905 1,098-18 Sales 379 243 56 Other/Consolidation 274 278-2 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

EBITDA 1 by unit Russia First nine months in million 2012 2011 +/- % Russia 523 378 +38 Main effects (in bn): Russia (+0.1) Mainly driven by higher results from new units not yet productive in 2011 1. Adjusted for extraordinary effects 21

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 1 310 524 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 -35,585-36,385 1. Net figure; does not include transactions relating to our operating business or asset management 22

E.ON Group Investments by unit First nine months in million 2012 2011 +/- % Generation 846 1,048-19 Renewables 1,113 712 +56 Optimization & Trading 245 372-34 Exploration & Production 359 425-16 Germany 553 533 +4 Other EU countries 619 739-16 Russia 186 248-25 Management Group / Others 412 29 - Investments 4,334 4,106 +6 Of which Maintenance investments 582 712-18 Growth and replacement investments 3,752 3,394 +11 23

Financial liabilities of the E.ON Group in billion 30 Sep 2012 31 Dec 2011 Maturity profile (as of 30 Sep 2012) 3 Bonds 1 22.3 23.4 in EUR 13.3 13.3 in GBP 4.6 5.0 in USD 2.3 2.6 in CHF 1.1 1.3 in SEK 0.1 0.3 bn 5,0 4,0 3,0 2,0 1,0 in JPY 0.8 0.8 other currencies 0.1 0.1 Promissory notes 0.8 0.8 Commercial Paper 0.2 0.9 Other liabilities 2 4.8 4.8 Total 28.1 29.9 0,0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 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

E.ON Group Economic interest expense (net) First nine months in million 2012 2011 Delta 12 / 11 Interest from financial assets/liabilities -851-788 -63 Interest cost from provisions for pensions and similar provisions 1-94 -108 +14 Accretion of provisions for retirement obligation and other provisions -645-605 -40 Capitalised interests 2 233 224 +9 Other 3 335-72 +407 Economic interest expense (net) -1.022-1.349 +327 1. 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.

Oil & Gas production in mboe 9M 2012 9M 2011 +/-% 2011 2010 Njord 2.4 3.6-33 4.7 7.3 Elgin-Franklin 0.5 2.0-73 2.5 2.8 Babbage 0.7 1.2-42 1.4 0.5 Rita 0.0 0.6-100 0.6 2.2 Other UK fields 0.9 1.2-25 1.7 2.0 Total North Sea 4.5 8.6-48 11.0 14.8 Yuzhno Russkoye 27.5 27.9-2 38.2 37.8 Total 31.9 36.5-13 49.2 52.6 26

Markets & hedging Energy markets Oil price and European gas prices Hedging (as per end September, 2012) Central Europe: Outright power hedging 2012 ~ 56 /MWh 1 2013 ~ 55 /MWh 1 2014 ~ 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 1 2013 ~ 44 /MWh 1 2014 ~ 43 /MWh 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = percentage band of generation hedged 27

E.ON Investor Relations Contact Dr. Marc Spieker Head of IR T+49 2 11-45 79-3 45 marc.spieker@eon.com Peter Blankenhorn Regions/Sales, SRI, Retail, T +49 2 11-45 79-4 81 Facts & Figures peter.blankenhorn@eon.com François Poullet Generation, Gas T +49 2 11-45 79-3 32 francois.poullet@eon.com Marc Koebernick Renewables, Trading T +49 2 11-45 79-2 39 marc.koebernick@eon.com Dr. Stephan Schönefuß Politics & regulation, Regions/Distribution T +49 2 11-45 79-48 08 stephan.schoenefuss@eon.com Carmen Schneider Technology & Innovation, Roadshow planning & management, T +49 2 11-45 79-3 45 Shareholder ID & Targeting carmen.schneider@eon.com 28

E.ON IR - Reporting calendar & important links Reporting calendar Date Event March 13, 2013 Annual report 2012 May 3, 2013 May 6, 2013 2013 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 http://www.eon.com/en/investors/26658.jsp http://www.eon.com/en/investors/42341.jsp http://www.eon.com/en/corporate/19886.jsp http://www.eon.com/en/corporate/1022.jsp http://www.eon.com/en/corporate/1029.jsp http://www.eon.com/de/investoren/dialog/creditor-relations.html 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 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