Debt Investor Update - E.ON
38
Debt Investor Update May / June 2018
Transcript of Debt Investor Update - E.ON
Debt Investor UpdateMay / June 2018
2017: We delivered on our promises
Economic net debt
26.3
~4.4x EBITDA
~5.3x EBITDA
FY 16
21.5
FY 17Q2 17
~3.9x EBITDA
19.2
Further measures to be finalized:+ Monetization of Uniper shares
+ Transfer of Nord Stream 1 stake into CTA
+ Further nuc. decommissioning cost savings and additional measures
Hybrid cancelled
€ bn
2
Achievements
De-risking completed: Transfer of interim and final nuclear storage obligations (KFK Solution)
Delivery on promises: Successful execution of ABB, Phoenix cost savings
Nuclear decommissioning cost savings
Overachievement of deleveraging targets due to NFT refund, Electrabel court case
Adj. EBIT at upper end of guidance
FFO/Net Debt ratio well above plan and thresholds
Strong Q1 2018 reinforces E.ON’s position of strength for the acquisition of innogy
Strong EBIT development: +24% Q1 2018 vs.low base in Q1 2017
Adj. Net Income increased +38% YoY
FY 2018 guidance confirmed: EBIT €2.8-3.0 bn, Adj. Net Income €1.3-1.5 bn
Voluntary PTO2 to innogy minority shareholders formally launched
Highlights
525
1,038
1,517
727
1,284
1,715
Adj. Net IncomeEBITDA EBIT
Q1 2018Q1 2017
Key Financials1
€ m
31. Adjusted for non operating effects, 2. Public Takeover Offer.
Operational update
1. Higher Regional Court of Düsseldorf (Oberlandesgericht – OLG), 2. Return on Equity, 3. German Federal Court of Justice (Bundesgerichtshof – BGH)
Customer Solutions Germany/UKEnergy Networks Germany
• OLG1 court decision on allowed RoE2
• Ruling: 6.91% set by BNetzA too low• Independent expert view: 7.7% adequate• BNetzA: appeal at last resort BGH3
• General efficiency factor gas• Reduction from 1.5% to 0.49%• However, E.ON filed legal complaint• Calculation method too unreliable
• General efficiency factor power• Decision by BNetzA in Q3 at the earliest
• Customer numbers continue to grow• More than 50,000 additional household customers
in Q1• Following gain of more than 100,000 in Q4 2017
and stabilization in Q2 & Q3 2017• Managed to reduce churn rate below market
average in UK• Strategy of innovative tariff offerings and focused
sales channels is bearing fruits
• UK political environment disappointing• Price cap still pending, many uncertainties remain
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Outlook 2018 confirmed
EBIT1
Adj. Net Income1
Outlook 2018
1. Adjusted for non operating effects
€1.3-1.5 bn
Effects for the remainder of 2018
E.ON Q1 2018 results
+ PreussenElektra: non-reoccurrence of one-off effects from 2017
– PreussenElektra: lower hedged prices
Energy Networks
Customer Solutions
Renewables
+ Sweden: power tariff increase– Germany: reversal of regulatory
effects, new regulatory period for gas,concession loss Hamburg
+ Germany: non-reoccurrence of a negative one-off effect in 2017
– Germany & UK: restructuring costs– UK: competitive dynamics
+ Offshore & Onshore: capacity additions (Bruenning’s Breeze, Radford’s Run, Rampion)
– Onshore: subsidy expiries
€2.8-3.0 bn
Non-Core+/–
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• 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
FutureE.ON
~371, 3
EngieIberdrolaEnelNat. Grid
~501
IberdrolaEngieEnelFutureE.ON
Regulated Asset Base (RAB € bn)
European Customer Numbers (m)
Iberdrola2Nat. Grid2Engie2Enel2
~51
FutureE.ON
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.
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Acquisition of innogy via innovative asset exchange
23.2%(Min. share-
holders)
76.8% stake in innogy
(from RWE)
16.67% Stake in Future E.ON(~€3.7bn)
E.ON & innogy Renewables & Other Assets
(~€13.5bn)1
E.ON receives €1.5bn cash
Offer price and secured innogydividend for 2018
RWE to receive 16.67% in new E.ON via 20% capital increase against contribution in kind (authorized capital)
RWE to receive the following assets:• E.ON‘s and innogy‘s renewables businesses4
• Additional assets: E.ON’s minority stakes in two RWE operated nuclear power plants2, innogy’sgas storage business and minority participation in Kelag
RWE receives innogy dividends for 2017 and 2018Cash payment from RWE to E.ON of €1.5bn3
71. Equity value for transfer perimeter 2. Gundremmingen (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)
Acquisition financing
AssetSwap
Attractive cash offer to minority shareholder in innogywith total offer value €38.40 (= €40.00 pre 2017 dividend of €1.60 paid in April 2018)
Credit-friendly transaction structure minimizes transaction risk and additional leverage
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• 20% capital increase in kind already implemented Full use of capital authorizations supports
capital structureCapital structure
• Transaction economics fixed as per Jan. 1, 2018 Purchase price and cash component fixed Locked Box approach Risks and chances of assets transferred
Economic risk allocation
• RWE stake of 76.8% enough to conclude DPLTA – legal integration secured – transaction is a “done deal”
Deal certainty
• Asset swap with RWE incl. cash payment to E.ON
• PTO for 23.2% free float Acquisition financing covers 100% PTO acceptance
Deal Structure
Size of Future E.ON will substantially increase
1.Increased size
2. Improved diversification
3.Higher share of regulated earnings
~€8bn1~€5bn +60%
E.ON today Future E.ON
1. Future E.ON pro-forma 2017 (innogy data based on public information), 2. RABs from different regulatory regimes are not directly comparable due to significant methodical differences.
Group EBITDA 2017Improving business risk:
~31mCustomers
~50mCustomers1
~€23bn RAB2
~€37bn RAB1,2
Future E.ON: Customer Solutions Future E.ON: Networks
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Improved diversification across Europe
101. E.ON 2017 reported, 2. innogy 2017 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.
Unique downstream position across Europe
1. Increased size
2.Improved diversification
3.Higher share of regulated earnings
Improving business risk:
Increasing share of high-quality regulated earnings
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~70%2~55%1
Predominantly in jurisdictions with strong regulatory frameworks
Regulated
1. E.ON 2017 reported, 2. Future E.ON pro-forma 2017 (innogy data based on public information)
Future E.ON: Share of regulated network EBITDA 2017
1. Increased size
2. Improved diversification
3.Higher share of regulated earnings
Improving business risk:
Non-regulatedQuasi-regulated
Integration of innogy provides for strong synergy potential
2019 2020 2021 2022
Estimated synergies (€ m)2 Synergy focus1, 2
€600-800m
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~55%
~25%
~5%
• Strong synergy potential of €600-800m
• 10-15% of controllable costs
• ~5000 FTEs affected (~7% of employee base)
Corporate Functions & IT
Energy Networks
Energy Sales & Customer Solutions
~100%
1. Synergy split (€ million), 2. Future E.ON pro-forma 2017 (innogy data based on public information).
20192018 20212020
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.
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)(late April – early July)
Extended offer period(mid July)
Clear path to obtain full control, irrespective of PTO acceptance rate
Antitrust approvalsFull legal integration
Integration & synergies
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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
2025
0.0
2024
0.6
2023
0.4
2022
0.1
2021
0.8
2020
1.4
2019
1.1
2018
2.0
4.8
≥2026
OtherJPYUSDGBPEUR
Sound liquidity profile to support upcoming maturities and transactionLiquidity Sources (as of end Q1 2018)€ bn
Maturity profile (as of end Q1 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)
$2 bn repaid on April 30
Liquid funds 4.1
Non-current securities 2.4
Total 6.5
Syndicated loan (undrawn) 2.75
€ / $ Commercial Paper programs (undrawn) 10 / 10
Acquisition facility(undrawn) 5.0
Not including ~€3.8 bn proceeds fromUniper disposal expected for mid-2018
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15
Pro-forma economic net debt based on FYE 2017
Economic Net Debt 2017
~19.2
~10.6
~3.6
~5.0
E.ON1
Asset-retirement obligationsProvisions for pensionsNet financial position
1. E.ON 2017 reported / Innogy 2017 reported, 2. Future E.ON pro-forma 2017 (innogy data based on public information), 3. E.ON will address structural subordination post closing
~15.6
~0.3~3.0
~12.3
innogy1 Transaction effectsin € bn
Future E.ON2, 3
Economic Net Debt 2017
~35
• Nuclear provisions: ~€0.9bn
• AROs (Renewables): ~€0.9bn
• Tax equity liabilities (Renewables): ~€0.6bn
• Pension provisions (Renewables): ~€0.4bn
~€2.8bn debt transferred to RWE
€1.5bn cash payment from RWE
Acquisition of 23.2% minority shares
Structural subordination
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E.ON SE
E.ON Int. Finance B.V.
innogy SE
innogy Finance B.V.
Bonds
BondsGuaranteed by E.ON SE
Bonds
BondsGuaranteed by innogy SE
• Structural subordination may become a topic post closing
• To the extent necessary, E.ON has the choice among several mitigants for structural subordination:
− moving innogy bonds to E.ON leveland replacing innogy guarantee with E.ON guarantee
− upstream guarantee from innogy to E.ON
− liability management
E.ON will address structural subordination post closing
Rating agencies acknowledge improved business risk profile and confirm ratings
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S&P
• S&P sees improving business risk profile from higher share of fully regulated earnings
• BBB / A-2 (stable) ratings confirmed after announcement of transaction• FFO/Debt threshold expected to be lowered
Moody‘s
• Transaction transforms E.ON’s business profile with some 70% of group EBITDA coming from the greatly enlarged electricity and gas distribution segment
• Following a Review for Downgrade, Baa2 / P-2 ratings with stable outlook confirmed
• FFO/Debt threshold lowered from “mid teens” to “comfortably low teens”
Rating commitment is a cornerstone of our financial policy
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Capital Structure: Strong BBB / Baa
• Press releases, ad-hoc notices, etc. include our rating commitment where appropriate
• Equity story includes rating commitment• CEO and CFO emphasized rating commitment
multiple times in public statements
• Rating and capital structure are a crucial part of E.ON‘s financial policy• Commitment underpinned by all necessary means – as proven in previous years• Public commitment reiterated multiple times
Appendix Financial Details Q1 2018
Further Transaction Details
Contacts, Calendar & Disclaimer
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2
3
Financial Highlights
€m Q1 2017 Q1 2018 % YoY
Sales 10,480 9,330 -11
EBITDA 1 1,517 1,715 +13
EBIT 1 1,038 1,284 +24
Adjusted net income 1 525 727 +38
OCF bIT 1,027 359 -65
Investments 588 696 +18
Economic net debt ² -19,248 -19,658 -2
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E.ON Q1 2018 results
EBIT• Energy Networks: -5% YoY
Reversal of regulatory effects in Germany and tariff increases in Sweden
• Customer Solutions: +23% YoYPrice increases in Germany 2017, competitive dynamics in the UK
• Renewables: +7% YoYCapacity additions, partly offset by subsidy expiries
OCF bIT• Cash provided by operating
activities €0.7 bn below prior-year level
• Key driver: One-off effects in Working Capital
Adj. Net Income• Improves €202 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 and31 Mar 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
1
Investments• Energy Networks: €271 m
(vs. €260 m YoY)• Customer Solutions: €74
m (vs. €64 m YoY)• Renewables: €180 m
(vs. €251 m YoY )• Non-Core: €161 m
(vs. €5 m YoY)
+ PreussenElektra: increased volumes due to plant outages in Q1 2017 (mainly Brokdorf), positive one-off effects
+ Turkey: omission of book loss from asset sale
+ Sweden: power tariff increase+ Turkey: regulatory improvements– Germany: reversal of regulatory effects,
concession loss Hamburg
+ Germany: price increases as per Q2 2017, lower gas procurement costs Q1 2018
– UK: competitive dynamics, restructuring costs overcomp. price increases as per Q2 2017
+ Onshore & Offshore: capacity additions (mainly Bruenning’s Breeze & Radford’s Run)
– Onshore: subsidy expiries
EBIT 24% above prior year
65
11
133
73
Corp. Functions & Other,
Consolidation
Renewables
Customer Solutions
+246
Q1 2018 1,284
Non-core
Energy Networks -36
Q1 2017 1,038
EBIT1 Q1 2018 vs. Q1 2017€ m
1. Adjusted for non operating effects
Energy Networks
Customer Solutions
Renewables
Key Q1 Effects
Non-Core
1E.ON Q1 2018 results
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END impacted by seasonally low operating cash flow
-0.7
-0.1
-0.7
-19.7
-5.0
-3.6
-10.6
Pensions
0.7
AROs END Q1 2018
0.2
InvestmentsOCF
0.1
END FY 2017
-19.2
-6.0
-0.4
-2.9
-10.7
Other(Remainder)
0.1
Other (CTA2 Funding)
Divestments
€ bnEND1 Q1 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
Pension provisions Net financial positionAROs
Liquidation of pension scheme results in reduction of pension provisions –limited effect on END
1E.ON Q1 2018 results
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Adj. Net Income 38% above prior year
Q1 2018€ m
~€ 20m 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
E.ON Q1 2018 results
EPS (€ per share)
727
1,107
1,284 Group EBIT1
Other interestexpenses
-156
-21
Interest on fin. assets/
liabilities2
AdjustedNet Income1
Minorities -103
Income Taxes -277
Profit before Taxes1
Tax rate of 25% (stable yoy)
€0.34
1
23
-0.5
Capex
-0.7
OCF
0.1
-1.3
EBITDA1 Change in WC
0.0
0.4
FCF
21%
Tax Payments
-0.1
Interest Payments
-0.1
OCF bIT
1.7
Cash Adjustments3
Seasonally low CCR2
Q1 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 Q1 2018 results
1
24
Highlights
Segments: Energy Networks
• Germany– Reversal of regulatory effects – New regulatory period gas– Concession loss Hamburg
• Sweden+ Power tariff increase
• CEE & Turkey+ Regulatory improvements in Turkey
Energy Networks
132 151
415 353
138131
-5%
CEE & Turkey
Sweden
Germany
Q1 2018
642
Q1 2017
678
EBIT1 € m
€m Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY
Revenue 3,426 2,229 -35 298 293 -2 475 432 -9 4,199 2,954 -30
EBITDA 1 559 490 -12 173 190 +10 185 197 +6 917 877 -4
EBIT 1 415 353 -15 132 151 +14 131 138 +5 678 642 -5 thereof Equity-method earnings 16 16 +0 0 0 - 22 30 +36 38 46 +21 OCFbIT 720 23 -97 142 267 +88 152 164 +8 1,014 454 -55 Investments 98 108 +10 60 55 -8 102 108 +6 260 271 +4
TotalGermany Sweden CEE & Turkey
E.ON Q1 2018 resultsD
etai
ls
1
25
Segments: Customer Solutions
Customer Solutions Highlights
• Germany Sales+ Price increases as per Q2 2017+ Lower gas procurement costs– Restructuring costs
• UK + Price increases as per Q2 2017– Competitive dynamics– Restructuring costs– Price caps (PPM2, vulnerable customers)
121 116
160 148
128
392
Q1 2017
31938
+23%
Other
UK
Germany Sales
Q1 2018
EBIT1 € m
1. Adjusted for non operating effects, 2. Prepayment Meter
€m Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY
Revenue 2,155 2,013 -7 2,151 2,391 +11 2,244 2,341 +4 6,550 6,745 +3
EBITDA 1 44 135 +207 184 169 -8 167 159 -5 395 463 +17
EBIT 1 38 128 +237 160 148 -8 121 116 -4 319 392 +23 thereof Equity-method earnings 0 0 - 0 0 - 3 1 -67 3 1 -67 OCFbIT -178 -169 +5 9 -103 - 2 -76 - -167 -348 -108 Investments 3 4 +33 46 40 -13 15 30 +100 64 74 +16
TotalUKGermany Sales Other
E.ON Q1 2018 resultsD
etai
ls
1
26
• Offshore/Other+ UK: Ramp-up capacity additions (Rampion)
• Onshore/Solar+ US: Capacity additions (Bruenning’s Breeze, Radford’s Run)– Subsidy expiries
Segments: Renewables
Renewables Highlights
61 58
99 113
+7%
Offshore/Other
Onshore/Solar
Q1 2018
171
Q1 2017
160
EBIT1 € m
1. Adjusted for non operating effects
€m Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY
Revenue 188 234 +24 188 167 -11 376 401 +7
EBITDA 1 113 97 -14 136 150 +10 249 247 -1
EBIT 1 61 58 -5 99 113 +14 160 171 +7 thereof Equity-method earnings 11 8 -27 OCFbit 187 228 +22 Investments 251 180 -28
Onshore Wind / Solar Offshore Wind / Others Total
E.ON Q1 2018 resultsD
etai
ls
1
27
Non-core business
Non-core Highlights
124
-15-51
27
+133
GenerationTurkey
PreussenElektra
Q1 2018
109
Q1 2017
-24
• PreussenElektra+ Higher volumes due to outages of all plants in Q1 2017+ Positive one-off effects in Q1 2018– Lower achieved power prices
• Generation Turkey+ Book loss from asset sale in Q1 2017
PreussenElektra: Hedged Prices (€/MWh) as of 31 March 2018
EBIT1 € m
1. Adjusted for non operating effects
E.ON Q1 2018 results
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29
26
32
2020
2019
2018
2017
80%
4%
99%
Det
ails
100%
1
€m Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY Q1 2017 Q1 2018 % YoY
Revenue 364 278 -24 0 0 - 364 278 -24
EBITDA 1 74 159 +115 -51 -15 +71 23 144 +526
EBIT 1 27 124 +359 -51 -15 +71 -24 109 +554 thereof Equity-method earnings 26 25 -4 -51 -15 +71 -25 10 +140 OCFbIT 207 112 -46 0 0 - 207 112 -46 Investments 5 7 +40 0 154 - 5 161 -
TotalPreussenElektra Generation Turkey
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Adjusted Net Income
€m Q1 2017 Q1 2018 % YoY
EBITDA 1 1,517 1,715 +13
Depreciation/amortization -479 -431 +10
EBIT 1 1,038 1,284 +24
Economic interest expense (net) -195 -177 +9
EBT 1 843 1,107 +31
Income Taxes on EBT 1 -210 -277 -32
% of EBT 1 -25% -25% -
Non-controlling interests -108 -103 +5
Adjusted net income 1 525 727 +38
1. Adjusted for non operating effects29
E.ON Q1 2018 results
1
Reconciliation of EBIT to IFRS Net Income
€m Q1 2017 Q1 2018 % YoY
EBITDA 1 1,517 1,715 +13
Depreciation/Amortization/Impairments -479 -431 +10
EBIT 1 1,038 1,284 +24
Economic interest expense (net) -195 -177 +9
Net book gains 52 104 +100
Restructuring -94 -26 +72
Mark-to-market valuation of derivatives -308 191 +162
Impairments (net) 3 0 -100
Other non-operating earnings 394 -87 -122
Income/Loss from continuing operations before income taxes 890 1,289 +45
Income taxes -155 -256 -65
Income/loss from continuing operations 735 1,033 +41
Income/loss from discontinued operations, net 0 0 -
Net income/loss 735 1,033 +41
1. Adjusted for non operating effects
E.ON Q1 2018 results
1
30
Cash effective investments by unit
1. Adjusted for non operating effects
€m Q1 2017 Q1 2018 % YoY
Energy Networks 260 271 +4
Customer Solutions 64 74 +16
Renewables 251 180 -28
Corporate Functions & Other 8 9 +13
Consolidation 0 1 -
Non-Core 5 161 -
Investments 588 696 +18
E.ON Q1 2018 results
31
1
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
E.ON Q1 2018 results
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1
€m 31 Dec 2017 31 Mar 2018
Liquid funds 5,160 4,108
Non-current securities 2,749 2,449
Financial liabilities -13,021 -12,736
Adjustment FX hedging ² 114 166
Net financial position -4,998 -6,013
Provisions for pensions -3,620 -2,924
Asset retirement obligations -10,630 -10,721
Economic net debt -19,248 -19,658
Economic interest expense (net)
€m Q1 2017 Q1 2018 Difference
(in € m)
Interest from financial assets/liabilities -175 -156 +19
Interest cost from provisions for pensions and similar provisions -21 -16 +5
Accretion of provisions for retirement obligation and similar provisions -17 -20 -3
Construction period interests¹ 8 8 +0
Others 10 7 -3
Net interest result -195 -177 +18
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%)
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E.ON Q1 2018 results
1
Takeover of innogy – Official offer period has started
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E.ON will have control post closing,irrespective of offer acceptance rate
Highly attractive offer for innogyminority shareholders
Alternative compensation for minority shareholders could be lower than offer
value or include no cash compensation at all
• Compensation payment based on IDW S11 valuation in case of DPLTA2 or squeeze-out or
• “Guaranteed dividend” in case of DPLTA or• Shares in merged NewCo
• Total offer value €38.40 (= €40.00 pre 2017 dividend)• 28% premium to innogy’s last share price unaffected by general
takeover speculations (22 February 2018)• 23% premium to average broker target price before
announcement on March 12th
• Offer value reflects value of innogy stand-alone and part of the potential synergies resulting from full integration
Incentive structure for high acceptance rate in place
1. Valuation standard of the Institute of Public Auditors in Germany, 2. Domination and profit and loss transfer agreement
2
Transaction Update – Merger control proceedings
Pre-notification
Simplified overview of process steps of EU merger control proceedings(possible (partial) referrals to national authorities not taken into account1)
PreparationsPhase I
(25 working days)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
2
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E.ON Debt Investor Relations contacts
Simon Kowal T +49 (201) 184 65 52Manager Corporate Finance [email protected]
3
Rouven Fleischer T +49 (201) 184 72 30Manager Corporate Finance [email protected]
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Financial calendar & important links
Financial calendar
August 8, 2018 Half-Year Financial Report: January – June 2018
November 14, 2018 Quarterly Statement: January – September 2018
March 13, 2019 Annual Report 2018
May 13, 2019 Quarterly Statement: January – March 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.de/
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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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