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This presentation contains certain financial measures (including forward-looking measures) that are not calculated in

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Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded

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may not add up exactly to the totals contained in the respective tables and charts.

1. Group overview

Strategic partnership Enerjisa

PreussenElektra

2. Financials

3. Core activities

Energy Networks

Customer Solutions

Renewables

4. IR Calendar and contacts

Agenda

Discontinued operations

as of AGM approval

At equity post registration

of spin-off & execution of

deconsolidation

agreement

New segment reporting starting Q2

Energy Networks

Renewables

Customer Solutions

Corp. Functions/ Other

Preussen Elektra

Generation

Renewables

Global Commodities

Exploration & Production

Germany

Other EU Countries

Non-EU Countries

GM / Consolidation

Reporting structure until Q1 2016 Reporting structure as of Q2 2016

Germany

Sweden

CEE & Turkey

Germany

UK

Other

Uniper

5

1. Group overview


PreussenElektra

2. Financials

3. Core activities

Energy Networks

Customer Solutions

Renewables


Agenda

50% 50%

Source: IHS, EIA

Turkey EU28

Enerjisa – Market environment

Favorable growth environment

7

2015-2035

Annual Real GDP

Growth 3,4%

0,5%

10,5%

2,4%

4,7%

-0,6%

2006-2014

Population

growth

Electricity

consumption

growth

3,5%

1,7%

17,0%

2,3%

4,1%

0,5%

CAGR CAGR

Growth Growth

CAGR CAGR

Strong macro-economic indicators

Supportive regulatory environment

8

Source: EMRA

• Eligibility limit for regulated tariff

consistently reduced, but, ~90% of

residential customer accounts still

within threshold

• Full liberalization expected,

opening up new market and profit

pools

Evolution of market liberalization

Eligibility threshold (MWh p.a.)

25,0

5,0 4,5 4,0 3,6

2012 2013 2014 2015 2016

Source: Euromonitor, EMRA, E&Y, IHS Source: EMRA

• Stable cash flows from

USD-denominated feed-in-tariffs

(10years)

• Yearly flexibility to opt for either

feed-in-tariffs or market tariffs

• Higher feed-in-tariff if power plant

parts were manufactured in Turkey

73 73

Wind Hydro

Feed-in-tariffs 2015

USD denominated (USD/ MWh)

4

Regulatory incentive framework

• Return on RAB:

• Opex outperformance:

• Theft & loss allowance

outperformance:

• Financing outperformance:

Regulatory WACC (Pre-tax, local

currency)1

11,9%

6.1-8.0%

5,9% 4,5%

Turkey CEE Germany Sweden

1. Turkey and Sweden: Real return; CEE, Germany: Nominal return

2. Pro-forma calculated. Instead of using a WACC-approach the German regulator publishes allowed equity returns. WACC figures for existing (Return on equity: 7.14% pre corporate tax and

after commercial tax) and new investments (Return on equity: 9.05% pre corporate tax and after commercial tax) are assuming c. 4% cost of debt and a 60/40 debt/equity capital structure.

The pro-forma WACC figure of 5.9% is then derived by weighting the share of existing assets (WACC: 5.7%) and new assets (WACC: 6.5%)

3. Pre-tax real WACC for Sweden of 4.5%; Current WACC of 4.5% challenged in court by network operators; Average inflation expectation for Sweden amount to 1.6%

4. Applicable to ~95% of the hydro installed capacity

Eligible Non-eligible

Improvement through recent

regulatory review

• WACC: 9.97% to 11.91%

• Increased allowed Capex and T&L

performance

Energy Networks Renewables Customer Solutions

Country risk premia vs. Germany

Enerjisa – Market environment

2 3

1. Capacity under construction includes CCGT, lignite and hydro plants

2. Excluding state-owned EUAS

3. Unadjusted as per Enerjisa financial statements

4. Including trading result

5. Including optimization

Customer

Solutions

9 m customer accounts,

mainly in Istanbul, Ankara

and Adana regions

0.2 TL bn (13% of total)

Energy Supplier

by supplied energy

(TWh)

#1

Generation/

Renewables4

0.8 TL bn (40% of total)4 5

Generator

by installed capacity2 #1

Assets and

activities

Market

position

EBITDA

20153

Energy

Networks

Operating 207,000 km

grid within three core

regions of Turkey:

• Istanbul: Urban

growth engine, mega

city, financial hub

• Ankara: Capital, the

political heart

• Adana: high-growth

industrial center, young

and booming

population

0.9 TL bn (47% of total)

Distribution

Network Operator

by grid length

#1

Enerjisa

Under

construction1

1.1 GW Hydro

1.3 GW

Wind

0.2 GW

Gas

1.1 GW

Recognized market leader with diversified portfolio

9

TL bn

EBITDA – 2011A-2015A1

0.5

2015

0.8

1.9

CAGR: 39%

2014 2013

0.5

2012

0.5

2011

Performance improvements of privatized

distribution assets

• New leadership and more efficient management

structure

• Streamlined organization

• Stakeholder management focus

Capability transfer

• Technical support for project development and

execution

• Support for commercial and financial processes

Operational improvements

• SAP roll-out at group and operating units

• SCADA system implementation

Footprint build-up

• Acquisition of two distribution companies

• Build-up of 2.5 GW generation capacity

• Strong positioning of retail business through re-

branding

Enerjisa

Enerjisa – track record


Enerjisa has been developed into a state-of-the-art company

10

11

622

-164

-314 -49

95 51

-31 -23 -24 -27

EnerjisaEBITDA

2015

Depreciation Financialexpenses

Tax, Other Enerjisa NetIncome 2015

E.ON share(50%)

Divestment-related

impairments(one-offs)

Acquisition-related

depreciationcharges (run-

rate)

FX hedgesand other

Contributionto E.ON

EBITDA/ NetIncome

Enerjisa net income to E.ON contribution bridge – 20151, € m

2


2. Different FX translation methodology leads to €51 m > 50% of NI

3. Reversal of allocated step-up on acquired assets

Contribution to E.ON EBITDA/ Net Income mainly impacted by PPA

3

Enerjisa

Enerjisa generates sizeable EBITDA

2.3

Ankara

Istanbul

Adana

2.2 m subscribers

7.7 TWh consumption

Ayedas DisCo1 (2015)

Toroslar DisCo1 (2015)

3.2 m subscribers

15.9 TWh consumption

3.4 m subscribers

16.3 TWh consumption

Baskent DisCo1 (2015)

USP – High growth industrial

center, booming and young

population

Population – 7.9 m

Area – 46,596 km2

Total line length – 79,705 km

Toroslar at a glance

Overview of Networks regions

12

USP – Ankara as capital,

Turkey’s political “heart”


Area – 61,161 km2


Baskent at a glance

Sizeable footprint

Integration of new distribution companies well advanced

USP – Istanbul as megacity with

strong growth (regional (financial)

hub)


Area – 1,898 km2


Ayedas at a glance

Enerjisa

1. Distribution company

Generation: Portfolio overview

Capacities in MW Gas Hydro Wind Lignite

In operation 1.056 1.292 212

Under construction 596 62 450

In development 850

Bandirma I – 936 MW

Balikesir – 143 MW

(formerly Bares)

Canakkale

– 30 MW

Kentsa – 120 MW

Arkun – 245 MW

Cambasi – 45 MW

Pervari – 400 MW

Incir – 170 MW

Dagpazari I – 39 MW

Hacininoglu – 142 MW

Sarigüzel – 103 MW

Kandil – 208 MW

Dagdelen – 8 MW

Tufanbeyli I – 450 MW

Yamanli II – 82 MW

Menge – 89 MW

Kusakli – 20 MW

Köprü – 156 MW

Kavsakbendi – 191 MW

Dogancay – 62 MW

Istanbul

Enerjisa

13

Alpaslan – 280 MW Bandirma II – 596 MW

Ankara

TL bn

Net Income and EBITDA1

2020 2015

0.3

Strong financial discipline

Further investments mainly in

energy networks and

renewables/ distributed

generation

Selected disposals

Further debt financing

optimization (FX, tenor, Interest

rates)

Enerjisa

Enerjisa strategic focus for

2016 and beyond Key factors driving Enerjisa’s performance


The outlook for Enerjisa is solid, with positives and challenges in balance

14

Positives

and

strengths

Challenges

Macro fundamentals and Enerjisa position

Power market growth still strong and regulatory

framework stable, i.e. future growth enablers

intact

Strong market position: Leader by most metrics,

strong brand

Excellent operational performance: CCGT

benchmark competitive vs. E.ON fleet,

successful in integration of 3 networks

Generation market and Enerjisa capital structure

Generation market to remain oversupplied in the

near-term due to overbuild, affecting power

prices and spreads

High Enerjisa financial debt resulting from

Ayedas/Toroslar acquisitions and generation

investments

Medium-term IPO potential

1.9

Net Income EBITDA

1. Group overview


PreussenElektra

2. Financials

3. Core activities

Energy Networks

Customer Solutions

Renewables


Agenda

Asset overview

Decommissioning Shut down

Active and operated by

PreussenElektra

Start-up

year

E.ON

share

(%)

Net

Capacity

(MW)

Shutdown

year

(AtG)1

Active

nuclear

plants

E.ON

operator

Isar 2 1988 75.0 1,410 2022

Brokdorf 1986 80.0 1,410 2021

Grohnde 1985 83.3 1,360 2021

Active

nuclear

plants

E.ON

minority

share

Emsland 1988 12.5 1,335 2022

Gundremmingen C 1985 25.0 1,288 2021

Gundremmingen B 1984 25.0 1,284 2017

Shutdown

nuclear

plants

Grafenrheinfeld 1982 100.0 1,275 2015

Isar 1 1979 100.0 878 2011

Unterweser 1979 100.0 1,345 2011

Stade 1972 66.7 878 2003

Würgassen2 1975 100.0 640 1994

Brunsbüttel 1977 33.3 771 2011

Krümmel 1984 50.0 1,364 2011

Gundremmingen A 1966 25.0 250 1977 Active and minority share PreussenElektra

Brunsbüttel Brokdorf

Stade

Unterweser

Krümmel

Hannover Emsland

Grohnde

Würgassen

Grafenrheinfeld

Isar 1/2

Gundremmingen A/B/C

PreussenElektra

Geographic presence in Germany Overview of E.ON’s German nuclear plants

16 1. Atomgesetz

2. Start-up year 1971, transfer to Preußische Elektrizitäts-Aktiengesellschaft in 1975

1. Nuclear plants which have been shut down and are in majority owned by E.ON include Grafenrheinfeld, Unterweser, Isar 1, Stade, Würgassen. Active joint nuclear plants are

Gundremmingen B & C and Emsland

2. Including Brokdorf, Grohne and Isar 2. Controllable costs only include cost components that can directly be influenced and are not mainly driven by external factors (e.g. no nuclear fuel tax

and nuclear fuel costs are included)

3. Average across German nuclear power plants operated by E.ON

4. Based on pro forma figures - including participation income and effects from nuclear fuel cycle

5. Operational capex not taking into account decommissioning

• On average >90% availability over the

last 5 years

• Earnings with near term visibility through

forward hedging (>2 years)

• Controllable operational costs development

(incl. capex)2:

75848788

100

2015 2014 2013 2012 2011

Controllable costs, indexed to 2011 = 100 3

-25%

PreussenElektra

Excellent fleet track record Three active power plants1

Shut-down dates

Grohnde (1,360 MW) 2021

Brokdorf (1,410 MW) 2021

Isar II (1,410 MW) 2022

Financials

~€0.6 bn4 EBIT 2015

Capex 2016-2018 ~€0.1 bn5

Safe and efficient operations

17

~€0.8 bn4 EBITDA 2015

Near term visibility through forward hedging

100% 100%

82%

2016 2017 2018

Forward hedged price (€/ MWh)

37.6 32.9 26.6

PreussenElektra forward hedging overview 2016-2018

Hedged volumes (%)

PreussenElektra

18

Overview nuclear provisions

€ m FY 2015

Retirement and decommissioning 7,857

Containers, transports, operational waste, other 2,902

Interim storage 2,205

Schacht Konrad final storage facility 1,363

Final storage facilities for high active waste 2,647

Total nuclear provisions in economic net debt 16,974

PreussenElektra

19

1. Group overview


PreussenElektra

2. Financials

3. Core activities

Energy Networks

Customer Solutions

Renewables


Agenda

+ Substantially increased earnings stability

+ Operations mainly under stable, well

established regulatory frameworks in low

risk markets

+ Sharply reduced commodity & FX risk

exposure

- Reduction of overall size and diversification

A higher share of regulated / long-term contracted earnings following spin-off

High share of regulated / long-

term contracted earnings

High cash conversion

Diversified portfolio

E.ON’s attractions

Attractive return on capital

Business profile post spin-off

1. Pro-forma figures – without Uniper contribution and excluding results from divested operations

2. Including Energy Networks, ~40% of Heat and ~60% of Renewables

EB

ITD

A 2

01

5

Renewables

Customer Solutions

PreussenElektra

and others

Energy Networks

~€5.0 bn1

~65% from

regulated / long-term

contracted businesses2

21

Profit & Loss Statement1

22 1. Pro-forma figures

€m 2015

Group EBITDA 5,844

D&A -2,281

EBIT

Energy Netw orks 1,811

Renew ables 391

Customer Solutions 806

Corporate functions/ other -403

Core EBIT 2,604

PreussenElektra 563

Divested operations 395

Group EBIT 3,563

Financial results -1,485

Income taxes -710

Non-controlling interests -270

Underlying net income 1,098

Other non-operating results -8,097

Net income/loss attributable to shareholders of E.ON SE -6,999

Cashflow Statement1

23 1. Pro-forma figures

2. Including proceeds from disposal/purchase of securities, financial receivables and fixed-term deposits as well as contributions to pensions

€m 2015

Cash provided by (used for) operating activities before interest and taxes

Energy Netw orks 1,637

Renew ables 563

Customer Solutions 1,581

Corporate functions/ other -265

Core cash provided by (used for) operating activities before interest and taxes 3,516

PreussenElektra 391

Divested operations 841

Group cash provided by (used for) operating activities before interest and taxes 4,749

Interest payments -619

Tax refunds (net) 61

Cash provided by (used for) operating activities 4,191

Purchase of invesments in intangibles, property, plant and equipment and equity investments -3,227

Proceeds from disposal of intangibles, property, plant and equipment and equity investments 4,522

Changes in restricted cash and cash equivalents 148

Cash provided by (used for) investing activities 1,442

2

Economic Net Debt

24

€m 31 Dec 20151

Liquid funds 7,829

Non-current securities 4,536

Uniper receivable (financial receivables) 11,626

Financial liabilities -15,791

Uniper payable (financial liabilities) 2 -8,547

Adjustment FX hedging3 218

Net financial position -129

Provisions for pensions -3,281

Asset retirement obligations4 -17,930

Economic net debt5 -21,340

Source: Spin-off Report, E.ON

1. Differences might occur due to rounding

2. Net figure; does not include transactions relating to our operating business

3. Net of profit and loss sharing agreements with Uniper

4. Thereof 16,974m related to nuclear AROs

5. Not including Nordstream transfer, capital measures and repayment of E.ON loan

1. Group overview


PreussenElektra

2. Financials

3. Core activities

Energy Networks

Customer Solutions

Renewables


Agenda

62% 18%

20%

26

Overview

EBIT breakdown 20153

Leading European operator of electricity

and gas networks supplying several

million customers

Strong positioning based on €18 bn

RAB1 and geographically diversified

asset base in six countries2

E.ON ensuring efficient grid expansion

using ultra-modern technologies

Overview

E.ON’s network presence

Germany 351 59 19 11

Sweden 137 2 24 60

Hungary 84 18 52 21

Romania 55 21 17 49

Czech R. 66 5 28 6

Slovakia 38 - 43 -

Network

length

(tkm)

Market

share

(%)

P G P G

GER SWE

CEE &

Turkey 4 5

Power

Gas

1. Current total RAB of country/region, relevant for 2016 - In general, RABs from different regulatory regimes are not directly comparable due to significant methodical differences. These

include for example different regulatory asset lifetimes, asset valuation methods, or treatment of customer contributions for network connections. For example in Sweden, the calculation

of the asset base takes into account standard costs instead of actual costs.

2. Excluding Turkey

3. Pro-forma figures

4. Including at-equity result from Slovakia and Turkey


~70%

Energy Networks

Financials 1

27

Germany Sweden CEE & Turkey Contribution to E.ON Group (Group result)

1.686

489

558

2.733

2015

47%

EBITDA 2 3

1.129

329

354

1.811

2015

51%

EBIT 2 3

564

543

530

1.637

2015

34%

OCFbIT 2 3


2. Including Slovakia and Turkey at equity


4. 2015 impacted by negative one-off working capital effects

Energy Networks

€ m € m € m

4

Additional

remuneration3

Sweden

N/A5

Energy Networks

Additional earnings from efficiency, investments and non-regulated activities

Operational

efficiency

Non-regulated

earnings

Other

earnings

Germany

7%-9%

5%-7%

1%-3%

4%-6%6

Performance-

specific

Slowly

growing

Varying

Based on grid

expansion

5%-7%

6%-8%

15%-17%4

Return on RAB + Regulatory D&A1

(2015)

~€1.05 bn

(~63% in 2015)

Normalized additional components (% of total EBITDA on a normalized level)2

Indicative EBITDA pro-forma

components

CEE7

N/A5

7%-9%

2%-4%

1%-2%

~€454 m8

(~84% in 2015) ~€470 m

(~96% in 2015)

1. RAB multiplied with pro-forma WACC plus regulatory D&A

2. For years 2016-2018

3. Grid expansion for Germany

4. Including income from minority participations in other regional utilities (~ €140 m)

5. RAB adjusted for investments during regulatory period

6. Difference between regulatory and IFRS accounting

7. Includes the Czech Republic, Hungary, and Romania (Slovakia and Turkey are not included)

8. In Hungary E.ON has to pay the so-called “utility tax” in an annual amount of

HUF12.5 bn (~€39 m). This tax is not recognized (as OPEX) by the Hungarian

Regulator. For the purpose of this analysis we reduce the “Return on RAB” by HUF12.5 bn to

show the effective regulatory performance 28

29

Regulatory D&A

Germany Sweden CEE2

€0.47 bn, 45%

€1.04 bn

€0.28 bn, 27%

€0.28 bn3, 27%

155%

116% 127%

Germany Sweden CEE

2016-2018 Capex / Regulatory D&A Average D&A p.a. by geography (2016-2018)1

Energy Networks


2. Excluding Slovakia and Turkey

3. Due to start of new regulatory period in Hungary, assuming 2017 and 2018 regulatory D&A equal to 2016

2

Introduction to German operations

30

(100%)

(67%)

(66.5%)

(61.5%)

Capex split 2016-2018

Highly fragmented, more than 800 network

operators in Germany

5,400 concessions granted by municipalities

are the basis of our business, which is the

largest among network operators in Germany

Our networks are concentrated in rural areas

Therefore we are positively affected by the

“Energiewende” and the installation of

renewables capacity

Sector & business specifics

€2.2 bn €0.9 bn, 41%

Replacement & other Growth

E.ON’s networks presence1

GER

€1.3 bn, 59%

1. Including network presence of E.ON‘s 110kV grid, excluding lost concession areas

Energy Networks

https://www.hansewerk.com/cps/rde/xchg/hansewerk/hs.xsl/index.htm

Regulation – General overview

Cost Audit

+

Benchmarking

Grid

expansion

Revenue cap incentive regulation

Cost audit and benchmarking once per regulatory period (5 years)

Total costs of historic base year basis for benchmarking & revenue cap

Efficiency level determines revenue path of regulatory period

DSO applies yearly for grid expansion

Increases revenue cap within a regulatory period

Based on revenue cap, estimated energy consumption and income differences (too high/ low) from prior years

Differs for different network areas within Germany

Yearly adjustment of revenue cap by

Consumer Price Index (CPI)

General efficiency factor of currently 1.5%

Individual efficiency factor from benchmarking

Yearly

revenue cap

Network tariff

every 5 years

yearly application

& adjustment

yearly adjustment

yearly adjustment

31

GER

Process steps of regulatory system

Energy Networks

Regulation – Regulatory schedule

32

GER

2nd regulatory period

Cost base for revenue cap (illustrative)

Base y

ear

Revenue cap (individual efficiency = 100%)

Base y

ear

Cost Audit

+

Benchmark

3rd 1st regulatory period

Cost Audit

+

Benchmark

Cost of base year 2011 are basis for allowed revenues from 2014 onwards

Regulatory cost audit and benchmarking took place from mid 2012 to end 2013

Replacement investments in the years 2012 to 2016 are reflected in allowed revenues from 2019 onwards

Benefits from performance measures effective in the years 2012 to 2016 can be kept until 2019

3rd regulatory period for gas beginning already in 2018

Regulatory cost audit gas will start in 2016

Final decision by the regulator on the allowed revenues gas expected in the second half of 2017

1. For gas distribution: first regulatory period ended 2012. Therefore the base year for the second period was 2010. The second period for gas lasts from beginning of 2013 to the end of 2017

Commentary Power distribution1

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Energy Networks

Building blocks of allowed revenues

33

GER

1. Old assets are those capitalized before 01/ 01/ 2006. New assets are those capitalized after 01/ 01/ 2006. Old assets are indexed up to 40% with asset-specific indices to determine the

current costs. Relevant asset base for power 2011, for gas 2010.

2. Return on Equity rate is post trade tax and pre corporation tax

Schematic illustration for 2015 (power & gas)

Totex indexed to

CPI and subject to

general and individual

efficieny targets

40%

Cap Opex

Capital

Costs

Reg

ula

ted

asset

ba

se

1

Old

assets

: C

urr

ent

costs

New

assets

: H

isto

ric c

osts

Deb

t b

ase

(rela

ted t

o a

ctu

al capital

str

uctu

re, m

inim

um

60%

)

Reg

ula

ted

Eq

uit

y b

ase

(rela

ted t

o r

egula

tory

capital str

uctu

re, m

axim

um

40%

)

Retu

rn o

n E

qu

ity 2

Old

assets

: 7.1

4%

New

assets

: 9.0

5%

Retu

rn o

n e

xc.

Eq

uit

y

~4%

for

equity in

excess o

f

40%

Tra

de

tax a

llo

wan

ce

Dep

recia

tio

n a

llo

wan

ce

(based o

n u

sually

40 y

ears

regula

tory

asset liv

es)

Op

era

tin

g c

os

ts

all

ow

an

ce

(based o

n a

ctu

al costs

of

his

toric b

ase y

ear)

To

tal

all

ow

ed

co

st

ba

se

(To

tex)

Ad

dit

ion

al

reven

ue

s

(netw

ork

expansio

n,

qualit

y b

onus/

penalty…

)

La

gg

ed

reco

veri

es

(nett

ing o

f actu

al vs.

allo

wed r

evenues)

Pass

-th

rou

gh

ite

ms

(charg

es o

f hig

her

grid

levels

, pensio

ns,

etc

…)

All

ow

ed

reven

ue

s

Pow

er

(Old

)

€2.2 bn

€2.3 bn

€0.3 bn

€5.1 bn

Pow

er

(New

)

Ga

s

(Old

)

Gas

~€0.7

bn

Pow

er

~€3.3

bn

Energy Networks

Gas

(New

) €10.0 bn

Business with 5,400 concessions

34

15%

10 - 15

years

30%

5 - 10

years

30%

20%

currently

open

5%

2036 2007

8%

92%

lost renewed

• The German Networks business is based on

long-term concessions granted by municipalities

in the network area

• Renewal of concessions every 20 years

• Of all expiring concessions since 2007, more

than 90% renewed1, which means losses are

less than 1% per year

• Loosing an expiring concession triggers a

mandatory disposal of assets to concession

holder which means cash-in for E.ON

1. In % of revenue cap; loss of Gas concession of City of Hamburg in 2017 not included (Otherwise 88% renewed)

2. Only concession based business, which means high voltage business (110kV) excluded

• Future renewals predictable and no real peaks

for the next round of concession renewals

• Positioning ourselves as preferred regional

partner via superior customer service and

operational excellence

Renewal rate

in % of

revenue cap2

TODAY

Track record

in % of

revenue cap

GER

Confident for future competition Good track record in the past

>15 years >5 years

Energy Networks

Introduction to Sweden operations

35

Power

Gas

Highly fragmented distribution market with ~165

distribution companies with strongly differing

potential to handle current and future challenges

E.ON is the largest local network operator in the

market

E.ON has mainly grids in the country side

E.ON has a good reputation among stakeholders

Great focus on connection of large wind farms in

recent years, offering attractive future business

areas

Sector & business specifics

€1.0 bn €0.5 bn, 48%


SWE

€0.5 bn, 52%

Capex split 2016-2018 E.ON’s networks presence

Energy Networks

Revenue Cap (~€4.0 bn)1

Asset base including investments

Cost of Capital Operational Costs

Efficiency

Demands Return

Influenceable costs Non-influenceable

costs

Depreciation

Quality Adjustment

OPEX CAPEX

36

SWE

1

3

2

CAPEX: Real linear calculation of capital cost. No

asset considered older than 38 years when the

period starts (2016). Limited contribution to revenue

cap between 40-50 years

OPEX: Historic costs 2010-2013 used as base.

DEA2 method used for efficiency requirements

Quality: Differentiated quality cost for different

customer categories, expected security of supply

based on the whole industry’s performance

SMART transformation: Incentives given for

efficient grid operation (grid losses and load factor)

3

2

1

4

• Revenue regulation is an important part in the

pull set-up of regulations

• 1st period revenue regulation period 2012-2015

• 2nd period revenue regulation period 2016-2019

1. Gross revenue cap for 2016-2019 , excl. intercompany eliminations of ~€540 m

2. Data envelopment analysis

Regulatory model 2016-2019 Principles of regulation model

4

Energy Networks

Regulation building blocks of the allowed revenue

Replacement value by

year

Build-up of regulatory asset base SWE

37

Lines

Cables

Transformers

Meters

Others

Standard price by component

(~800 standard components)

Company’s real assets Regulators standard price list

Lines

Cables

Transformers

Meters

Others

Component x Price = • Replacement value

Age profile

Linear

depreciation

• Regulatory Asset

Base (RAB) =

Energy Networks

Deep dive – improved performance and stable business SWE

38

Since 2014, business model based on competitive

contractor management

New period of contracts from 2016 (4 year period)

Very competitive contractor markets in all geographical

areas

Foresee a better cost and performance situation in

contractor management for 2016-2019

Evaluated and applied experiences from earlier periods to

optimize commercial conditions in new contract period

Connection of wind power parks has increased last 8-9

years

Currently, weak business cases for wind power companies

due to low market prices on energy and green certificates

Still high request from developers for pre calculation and

preparatory work

E.ON involved in pre calculation of projects with approx.

2,000 MW

Connections are mandatory as long as sufficient capacity in

the network exists – investments are reflected in RAB

In case sufficient network capacity is not available, park

owners are required to fund the connection

EBIT / CSV

Controllable Opex/ CSV

Capex / CSVSAIDI unplanned

Grid losses

E.ON Ellevio Vattenfall Industry

0

750

1.500

2.250

3.000

0

100

200

300

400

MW/ year MW/ Acc

Installed Renewable Forecast/ Year

Acc Forecast Acc

Improved performance by outsourced business Intra-market benchmark base for development

Connection of wind power parks

Energy Networks

39

Grid customers (k)

Grid length (tkm)

P: 6,700

E.ON grids2

CEE – Overview

G: 2,400

P: 243

G: 44

Strong investment incentive, high WACC and need

of high investment volumes due to increased grid

replacement

Gradual deployment of smart metering and other

intelligent grid components

Government support of “clean mobility” – electro

mobility and CNG1

Currently stable energy consumption with expected

modest growth

€1.1 bn €0.6 bn, 60%

Power Power & Gas Gas

Power Gas Power & Gas

€0.4 bn, 40%

1. Compressed natural gas

2. Excluding Slovakia and Turkey; Differences might occur due to rounding

Capex split 2016-20182 E.ON’s network presence

Region specifics


Energy Networks

1. Group overview


PreussenElektra

2. Financials

3. Core activities

Energy Networks

Customer Solutions

Renewables


Agenda

Overview

49% 35%

16%

Germany

UK

Other

Covers energy sales (power & gas),

heat as well as new solutions

Serving B2C/ B2B SME customers

with “asset-light” and mass market

solutions

Serving B2B large/ B2M customers

with “asset-intensive”/ tailored

solutions

1. Excluding Turkey, including 49% stake in ZSE (Slovakia)

2. Excluding power/ gas volumes for heating

3. Pro-forma figures 41

EBIT

Power/ gas volume sold

Average EBIT margin

~€0.8 bn3

150 / 167

TWh2

~3%3

Customer accounts 23 m1

Customer Solutions

Energy sales and new

solutions (B2C/ B2B SME)

Heat & new solutions (B2B Large/ B2M)

Overview E.ON’s Customer Solutions presence

EBIT breakdown 20153

~15%

~85%

2015

Energy sales

District heating

New solutions

Financials1

42

UK Germany Other Contribution to E.ON Group (Group result)

402

452

258

1.112

2015

278

397

130

806

2015

729

487

365

1.581

2015

Customer Solutions

19% 23% 33%

EBITDA2 EBIT2 OCFbIT2

€ m € m € m



Overview customer segmentation

43

Customer Solutions

Customer

groups

Energy sales and new

solutions (B2C/ B2B)

Heat & new solutions

(B2B/ B2M)

B2C1

B2B SME2

B2B large3

B2M4

Customer

needs

• Simplicity & affordability (“How can I

save costs with low effort?”)

• Convenience & comfort

• Specific to sub-segments: How to

become more sustainable, compliant

and self-sufficient?

• Reduce energy costs or achieve

compliance

• Become sustainable for own customers/

citizens

• All-round carefree energy-related

optimization

• Financing solutions

Key E.ON

advantages

• Superior scale of customer base and

operations

• Existing customer relations as

foundation for up- and cross selling of

new services

• Customer insights and understanding

• Strong track record in heat and onsite

generation

• Vendor & technology neutral: best

customer solution

• Integrated offerings and end-to-end

solution delivery

• Trustful and strong partnerships with

municipalities

1. Domestic customers, e.g. families, single-households (B2C = Business to consumer)

2. E.g. developers and landlords, hotels, farmers, small and home-offices (B2B = Business to business)

3. E.g. commercial chains, large manufacturers, large hotel chains (B2B = Business to business)

4. Municipalities

B2B large3

Commodity only

Power: 41 TWh Gas:

51 TWh 7,6

Number of customeraccounts (m)

Country profile - UK

11%

12%

16%

16%

24%

RWE

EDF

SSE

E.ON

Centrica

44

Power1

Customer Solutions – Energy sales

Competitive market with comparatively high

churn rates

Extensive regulatory agenda through Ofgem

and Competition and Markets Authority review

New entering smaller suppliers with growing

market share

Digital solutions as key development trigger for

future solutions business

TWh Sold

9%

9%

13%

12%

37%

1%

5%

6%

25%

34%

ScottishPower

RWE

SSE

E.ON

Centrica

Gas2

1. Q3 2015 domestic market share

2. Non-household: End of 2013 market share; Household: Q3 2015 market share

Source: Ofgem

Non-household

Household

Key competitors and market shares Country trends

Operations overview – 2015

Country profile – Continental Europe1

45

Power: 110 TWh

Gas: 116 TWh

TWh Sold

n.a.

3%

11%

20%

20%

21%

34%

Romania

Italy

Sweden

Germany

Czech Republic

Slovakia

Hungary

Power

23%

4%

19%

10%

8%

2%

11%

Gas3


Retail market situation strongly differs: ranging

from fully competitive markets (e.g. Sweden,

Germany) to partly competitive (e.g. Romania)

Trend towards customer demands for new

solutions and expanded service offerings

Increasing number of customers demand

digital services and solutions

Source: E.ON, BDEW

1. Including Germany, Romania, Hungary, Czech Republic, France, Slovakia, Sweden, Italy

2. 2014 market shares, Germany gas share based on E.ON sales volume in 2015 and market size of 2014

3. From 2016 customer based reduced by 600 k USP gas customers in Hungary

Market shares2 Country trends

Operations overview – 2015

15,4

Number of customeraccounts (m)

Country profile – Continental Europe (cont’d)1

46

Customer

accounts (m)

Power sales

(TWh)

Gas sales

(TWh)

Czech Republic 1.3 16 15

Germany 6.2 46 52

Hungary 2.4 14 10

Italy 0.7 8 11

Romania 3.1 5 25

Slovakia 0.9 6 2

Sweden 0.7 15 2


2015

1. Including Germany, Romania, Hungary, Czech Republic, France, Slovakia, Sweden, Italy; differences might occur due to rounding

Total 15.4 110 116

B2C Solutions overview – selected examples

47

Smart check Saving energy toolkit

(SET)

Smart Check with ~35,000 customers in Germany,

growing by ~10.000 registered users a month

SET in the UK (~1 m SaaS1, 0.8 m active)

Over 65,000 connected home devices deployed in large

scale pilot projects

C. 400,000 customers make use of value added services,

such as energy-related insurance services

PV B2C ~3,500 PV contracts signed

PV & battery launched in April 2016 for B2C customers

„Solarprofis“: 170 O&M contracts signed in first 7 weeks

Customer Solutions – New Solutions (B2C/ B2B SME)

1. Software as a Service provider: Opower

PV/ battery Customer engagement

Connected home Value added services

B2B SME solutions case studies

Customer

Microart e. K. based in Roding (Bavaria)

is a specialist in producing precision

components and systems

Solution

• Realized in less than 3 weeks time

• Optimized for customer’s own

consumption, with produced power

nearly 100% self-consumed

• Reduces energy costs and CO2

emissions at the same time

150 MWh Power production

annually

84 tons CO2 emission

reduction annually

48

Energy Toolkit

• Web-based advice on energy

efficiency measures, personalized by

each customer`s business and meter

data

• Energy saving advice hotline staffed

with engineers

• Over 40% of users have visited the

dashboard more than once

• More than 10% indicating interest in

their recommended energy savings

measures

400,000 Eligible SME

customers

15% Average savings

opportunities

Prior Now

80% Reduction of lighting

energy consumption

1.5 years Payback period

Customer

Tylex Letovice is a Czech textile

manufacturer (home and technical

textiles) with more than 180 years

tradition

Solution

• Project on lighting upgrade at

customer site and a financing solution

• E.ON decreased the lighting energy

consumption by 80% and increased

brightness level with payback period

up to 1.5 years

Lighting PV Digital audits

Customer Solutions – New Solutions (B2C/ B2B SME)

Country profile - Germany

49

Customer Solutions – Heat

Gas-based heat and CHP

Distributed solution renewable

Heat grid

Other „Energiewende“ projects

Local area heating

Growth with local area heating concepts, especially in urban

areas

Sustainable cities

Brownfield approaches to develop new or to transform

existing city areas following a sustainability approach

5%

6%

16%

RWE

E.ON

Vattenfall

District and local area heating

District heating concentrated in the urban regions of

Hamburg and Saxony-Anhalt

Local area heating especially concentrated around Munich

and Bavaria in general as well as Northern Germany

Strong stakeholder relationships

Regional presence and valued competence as heat supplier

and DSO2 enables the implementation of Customer

Solutions and long-term relationships

1. Incl. households contracted via business customers

2. Distribution system operator

3. Source: Monopoly Commission – Sector Assessment District Heating 2012

Operations overview – 2015 Attractive locations

Country trends

District heating3

Key competitors and market shares

~2.7 TWh heat and ~0.5

TWh power sold ~140,000 customers1

Country profile - Sweden

50

District heating transformation

Further integration of renewable heat sources

Extension of district heating and power distribution to sustainable

city concepts, e.g. already proven in Malmö

Flexible customer solutions with increased product offerings

including financial solutions will serve increasingly as competitive

advantage

6%

7%

11%

14%

Vattenfall

Göteborg Energi

E.ON

Fortum

District heating

Large scale, profitable heat systems in three main metropolitan

areas of Sweden (Malmö, Norrköping, and Örebro)

Growth opportunity in Stockholm being developed

Further heat systems in urban areas across Sweden

Competition mainly from alternative heating solutions (i.e. heat

pumps)

Strong stakeholder relationships and acceptance

High penetration and strong customer acceptance of heat as

renewable and sustainable energy source

Recognition as long-term reliable partner opens opportunities with

municipalities and businesses for growing existing heat footprint

Climate friendly production due to more than 80% of heat supplied

coming from renewables or recycled energy

Stockholm area

Norrköping

Malmö

Örebro


~5.7 TWh heat sold ~220,000 households

supplied1

Operations overview – 2015 Attractive locations and growth opportunities

Country trends

District heating


1. Incl. households contracted via business customers

Country profile - UK

51

Scotswood,

Newcastle

Blackburn Meadows,

Sheffield

Cranbrook &

Monkerton,

Exeter

Bath

Southampton Newbury

London

31 schemes

1.1 TWh heat sold1 ~15,000 customer

contracts

11%

12%

Cofely

E.ON

District heating2

Stevens Croft

Stoke

Leeds and Bradford

Port of Liverpool Policy driven growth

Distributed heat market expected to grow 30% annually until 2020

driven by carbon and building policies

Significant government commitment to the development of district

heating networks

Introduction of regulation

Introduction of the heat metering & billing regulations and the

establishment of the heat trust, a voluntary code of conduct

Devolved responsibility

Local authorities passing the burden of low carbon targets to

developers via planning permission process, creating B2B

relationships

Local area heating

Extensive footprint of local area networks across UK urban and

metropolitan centres. Current focus on London, but opportunities

present at a national level

Established capabilities in sustainable and profitable heat and

power production and project delivery for biomass plants

Strong stakeholder relationships

Delivery track record and very good capability set makes us

recognized as attractive partner for heat networks

Local area heating systems CHP and biomass sites


1. Sold to customer accounts and via business heat power solutions including O&M contracts. Excluding sites E.ON only operates but does not own

2. For new builds

Country trends


Operations overview – 2015 Attractive locations

Onsite generation UK

52

Overall characteristics UK:

Overall capacity operated1: >800 MW th

Mainly CHPs with capacity of 5-50 MW

Lead times up to 6 years

Contract durations of up to 15 years

Power: 43 MW Heat: 6 MWth Was named Scotland’s best renewable energy project

Stevens Croft: Biomass

Power: 4.5 MW Heat: 19 MWth

Client: Nufarm

Bradford

Power: 0 MW Heat: 64 MWth

Client: Michelin Tyres

Stoke

Power: 0 MW Heat: 24 MWth Client: DS Smith Paper

Kemsley 2

Power: 4.5 MW Steam: 22 MWth

Client: St James University Hospital

Leeds

Power: 30 MW Heat: 70 MWth Clients: Cargill, Peel Ports

Port of Liverpool

Power: 28 MW Heat: 25 MWth Provides power for 40,000 homes by converting recycled waste wood

Blackburn Meadows: Biomass

Customer Solutions – New solutions (B2B Large / B2M)

1. Capacity related to regional unit UK owned and managed assets as well as assets only managed by regional unit UK

Power: 4.9 MW Heat: 52 MWth

Client: Queens medical center

Nottingham

Onsite generation - Continental Europe above 10 MW

53

Overall characteristics

Overall capacity operated1: ~600 MWel

Mainly gas-turbines of 5-200 MW

Lead times up to 6 years

Contract durations of 13 – 15 years

Power: 41 MW Steam: 90 MWth Client: Chemiepark Gendorf

CHP-Plant Gendorf

Power: 30 MW Steam: 60 MWth Client: K+S

CHP-Plant Hattorf

Power: 37 MW Steam: 47 MWth Client: OPAL Gastransport

Industrial plant Greifswald

Power: 80 MW Steam: 120 MWth Client: Evonik Degussa

CHP-Plant Antwerpen

Kraftwerk Marl

Power: 60 MW Steam:100 MWth

Client: Evonik

Power: 125 MW Steam: 150 MWth Client: UPM

CHP-Plant Plattling

Power: 120 MW Steam: 350 MWth Client: Wacker Chemie

CHP-Plant Burghausen

Power: 40 MW Steam: 75 MWth Clients: DSM, BASF

CHP-Plant Grenzach-Wyhlen


1. Owned and managed by E.ON as well as only managed by E.ON

Onsite generation - Continental Europe below 10 MW


54

Power: 711 kW Heat: 1.1 MWth 25% energy-cost savings

Hospital Bayreuth

Power: 4.4 MW Heat: 1.6 MWth 20% reduction of energy cost, 6,300 tons of CO2 saved annually

International packaging company

Redwitz municipal (Bavaria)

Power: 15 kW Heat: 30 kWth Supplies heat for a school and open air swimming pool

Airport Berlin Brandenburg

Power: 8 MW Heat: 10 MWth

Third largest cold storage in Germany

1. Owned and managed by E.ON as well as only managed by E.ON

2. Including Sweden

Overall characteristics

Overall capacity operated1: ~1,100 MWth2

Mainly CHPs/CHCPs up to 10 MW, heat

pumps and boilers

Tailored solutions according to customer needs

Contract durations of 10 – 15 years

Close collaboration with local partners necessary

Power: 2 MW Heat: 14.6 MWth Extended heat capacity via CHP integration into heat grid

Otto E-Commerce, Hamburg

Power: 1.7 MW Heat: 2.1 MWth

Supplies ca. 300 housing units via heat grid

City of Oldenburg: Heat

Power: 45 kW Heat: 90 kWth Oil-fired heating system replaced, 205 t CO2 savings per year

Reha clinic, Buckow

Onsite generation case studies: Queens Medical Center

and Friatec

55


E.ON solution

Gas turbine installation generates electricity &

steam used for heating, cooling (absorption

chillers) and equipment sterilization

CHP plant was installed to supply the hospital's

energy needs over 15 years

Maintenance done by E.ON UK

Customer

Queen's Medical Centre in Nottingham is the largest

hospital in the UK and a center of excellence in

patient care, teaching and research

Reduction in carbon

emissions of 16,000 t

a year or 38%

Save 42% of the annual

energy consumption

Friatec E.ON to build, own and operate Europe’s first fuel cell power plant of MW size

1.4 MW fuel cell with an electrical efficiency of 47% planned to go into operation in June 2016

Energy efficiency concept

56

Customer’s future

energy cost without

E.ON involvement

Time

Historical customer

energy cost

Operation, maintenance &

continuous optimization

Customer share

of savings

E.ON share

of savings

Customer’s future energy cost

after E.ON involvement

Start of E.ON

involvement


Delivering life-time energy and operating cost savings to our customers

Savings guarantee for customers

Energy performance contract concept

€

Energy efficiency case studies

57


Large tire manufacturer

Energy performance contract across 6 plants in Europe

Design, installation & operation of highly efficient heating, ventilation, compressed air & lighting systems

30-89% reduction of energy costs1

Large pharmacy chain

Energy data management and in-store energy dashboard across 1,300 stores

Building energy management system for HVAC2 and intelligent lighting control across 100 UK stores

20% reduction of energy costs3

Energy efficiency – helping customers to reduce energy consumption

E.g. through remote control and optimization of assets at customer facilities, >32,000 sites under management

E.g. efficient lighting solutions – 20 large scale and >50 mid-sized projects delivered

1. Range across all sites; savings refer only to components optimized by E.ON

2. Heating, ventilation and air conditioning

3. Average across all 100 stores, with individual site savings ranging from 5-44%; savings refer to total annual energy costs

Energy efficiency examples

Flexibility case studies

58

“Demand Response”

up to

E.ON solution

Identify demand response

capacity of the furnaces, and

connect them to E.ON’s virtual

power plant engine

Pre-qualify capacity with

TenneT

Market demand response

capacity to TenneT and

dispatch loads whenever

requested

Customer

German producer of

metallurgical silicon operating

four electric arc furnaces with a

nominal capacity of 54 MW in

the TenneT balancing zone

15 MW secondary balancing

power

E.ON achievements

Monetize customer’s

controllable loads


“Demand Response”

up to

E.ON solution

E.ON markets the generation

flexibility of the biogas plant to

the grid, allowing the customer

to generate revenue from

spare capacity

Innovative project delivered a

complete in-house Virtual

Power Plant (VPP) platform

Reduced equipment and

maintenance costs

Customer

A group of 11 entrepreneurial

agriculturalists have joined

forces to own and operate a

biogas CHP plant

Benefits

• Revenue from spare heat and power capacity

• Subsidy for renewable energy and flexibility

• Innovative VPP solution for small onsite generators

1. Group overview


PreussenElektra

2. Financials

3. Core activities

Energy Networks

Customer Solutions

Renewables


Agenda

Portfolio overview 1

~5.3 TWh

~0.6 TWh

Production

volumes2

2,310 MW5

328 MW

Owned

installed

capacity1

~45 €/ MWh

~150 €/ MWh

Average

revenue3

~0.7 TWh 257 MW ~126 €/ MWh

~0.4 TWh 159 MW ~102 €/ MWh

~0.4 TWh 155 MW ~64 €/ MWh

~0.4 TWh 117 MW ~48 €/ MWh

Renewables

60

1. Owned installed capacity as of 31 December 2015 including Amrumbank at 100%. Additionally, offshore wind adjusted for upgrade of Amrumbank to 301 MW in February 2016

2. Pro rata net production volumes for owned capacities in full year 2015. Net generation volumes defined as gross generation volume minus own consumption and line losses

3. Average revenue includes subsidies/ incentives (e.g. Production Tax Credit (PTC), Renewable Obligation Certificates (ROCs) etc.). E.ON reported financials classifies some of these

components as other income

4. For Rodsand, production volume is not consolidated, however for the attributable capacity, 20% of Rodsand are considered

5. Thereof 19 MWDC PV

Operated capacity countries

Project pipeline only

E.ON Renewables Footprint (2015)

Offshore

wind

~2.0 TWh

~0.5 TWh

646 MW

317 MW

~177 €/ MWh

~179 €/ MWh

~0.2 TWh 48 MW ~51 €/ MWh

NA4 41 MW NA4

Production

volumes2

Owned

installed

capacity1

Average

revenue3

Onshore

Wind + PV

Financials1

61

Contribution to E.ON Group (Group result)


2. Cash generated from PTC scheme is not visible in the OCF bIT

750

2015

13%

EBITDA

391

2015

11%

EBIT

563

2015

12%

OCFbIT 2

Renewables

€ m € m € m

US:

Tax Credits (PTC and ITC)

Accelerated Depreciation

(MACRS)

Renewable Portfolio

Standards (RPS)

UK:

Renewable Obligation

Certificates (ROC)

Contracts for difference

(CfD)

Levy Exemption

Certificates (LEC) have

been withdrawn (Aug

2015)

Germany:

Feed-In Tariff (FIT) with

direct marketing obligation

for German offshore

For upcoming new projects

remuneration will be

determined through tender

processes

Current regulatory regimes and frameworks

Quota obligation & tradable certificates

Feed-in tariff

Premium

PAYMENT MECHANISM

ALLOCATION

Competitive auctions

Auctions legislated but yet to be held

or pilot auctions only

Others

SUBSIDY BUDGET

Capped

Source: Bloomberg New Energy Finance

Summary

913

62

Remuneration scheme by geography Market Highlights

1

Renewables

Current regulatory regimes and frameworks (cont’d)

63

Offshore

FIT with direct marketing obligation

Remuneration (EEG 14):

- Initial tariff: €154/ MWh for 12 years

(standard) or €194/ MWh for 8 years

(“Stauchungsmodell”)

- Base tariff: €39/ MWh

- Initial tariff extended for deep waters/

distance to shore

Applicable for all E.ON offshore

parks in Germany

Projects commissioning in 2021 or

later subject to auction system

Onshore

FIT with direct marketing obligation

Term: 20 years plus the year of start of

operation (initial tariff for min 5 years

followed by base tariff)

Remuneration (EEG 14):

- Initial tariff: €89/ MWh

- Base tariff: €49.5/ MWh

From 2016: ~0.4% quarterly digression

Applicable for all E.ON onshore parks

in Germany

Auctions to be introduced in ‘16

Onshore

Remuneration based on wholesale

market or PPA, plus certain incentive

features

Production Tax Credit ($23/ MWh)1

Renewable Energy Certificate (driven

by state-level Renewable Portfolio

Standards (RPS)

Accelerated Depreciation for tax equity

investors and developers (MACRS)

Solar

Remuneration based PPA plus certain

incentive features

Investment Tax Credit

(30% of investment)2

Renewable Energy Certificate (driven

by state-level Renewables Portfolio

Standards (RPS)

Accelerated Depreciation for tax equity

investors and developers (MACRS)

Offshore

ROC per MWh

Term: 20 years

Remuneration: Wholesale price plus

1.8-2.0 ROC/ MWh based on COD

Applicable for all E.ON offshore parks

in UK

Move to CfD system from 2014

(strike price in first auction

£114.39-119.89/ MWh)

Onshore

Wholesale price plus ROC (new

projects eligible for COD April 2016)

Term: 20 years

Remuneration: 0.9 ROC/ MWh

Applicable for all E.ON onshore

Ongoing transition period between

ROC and a CfD auction system

First CfD auction was held in February

2015 (strike price £79.23-82.50/ MWh)

UK

1. Production Tax Credit (PTC) annually inflation-adjusted, paying out over 10 years. Full value for projects that have begun construction before 2017, then gradually decreasing until no PTC for

projects beginning construction after 2019. Investment Tax Credit (ITC) also applies to wind: 30% for projects that have begun construction before 2017, and then gradually decreasing until

expiring in 2020

2. Investment Tax Credit (ITC) for Solar amount to 30% for projects that have begun construction before 2020, then gradually decreasing until 10% level for projects starting construction after 2021

US GER

Renewables

Example

Green assets

Monetizing parts of our development

pipeline and operating asset portfolio

through establishing long-term partnerships

Services

Offering full scale operations, maintenance,

asset & energy management services to

third party asset owners

Our customers (examples)

Green energy

Providing long-term Power Purchasing

Agreements (PPA) to Utilities and B2B

customers1

Renewables

1. Including selling renewable energy to customers across Europe via our local retail organizations

We serve customers & partners with attractive propositions

Our offering

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiG_K7YuPLKAhWLPhQKHbijB04QjRwIBw&url=http://www.uns.com/&psig=AFQjCNF_x19uQIs30yVXmplxg1GxjFPiyA&ust=1455373973529398

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjZ9f2Wku7KAhXINpoKHQ_JA5QQjRwIBw&url=http://www.ingaa.org/members/774.aspx&bvm=bv.113943665,d.d24&psig=AFQjCNE8D63XWdu6d33tEG0yxhsfJ3sbTQ&ust=1455226197521361

Portfolio wind yield overview

Wind Onshore Wind Offshore

Wind speed (m/ s)

3 6 9

Site characteristics significantly influence

returns through load factor, costs and risks:

Continuous market scouting, as new sites

become accessible

World class skills in wind and solar yield

analysis and site assessment

Careful consideration of distance to shore

and water depth for offshore projects

Example Offshore: Rampion

The closest to shore with lowest water

depth at each tender round in the UK1

Example Onshore: Grandview

Potential 1 GW site in Texas

Load factor can reach >50%

Secured by early analysis of the grid

expansion program2

Source: 3Tier

65 1. Rampion COD is expected to be 2018, while all other projects have their planned COD between 2019 – 2024

2. Competitive Renewables Energy Zones (CREZ): Turning the Grandview site, among other areas, into a large site suitable for onshore wind installation

Our portfolio captures most attractive

wind locations Site selection approach

Renewables

O&M case study – onshore wind example

2014

83%

2013

85%

100%

2012

Spares strategy/ framework: Global gearbox

agreement, own purchase of consumables

Predictive maintenance: Retrofitted with

condition monitoring system

Smart maintenance: Self-hoist crane concept

O&M service concept: Previous mixed/ hybrid

team approach replaced by self-perform approach3

− Reduction of labor costs

− No extra labour and service costs in case of

repair/ emergency

− Full lever and immediate implementation of

improvements as sites are under E.ON’s sole

control

66

1. Example of single onshore wind plant operated by E.ON. O&M costs per MW in USD nominal

2. 2012 data recorded as time-based availability, hence not directly comparable with the energetic availability recorded in the fol lowing years

3. Mixed/ hybrid: E.ON Renewables team (EC&R) and OEM/ 3rd party as joint team with same tasks/ Self-perform: self-performed O&M managed by EC&R for high value work

98.2% 97.8%

N/A2

-1500 bps

81%

-200 bps -200 bps

98.8%

2015

2014 2013 2012 2015

Selected O&M improvement initiatives O&M costs per MW decreasing1

Availability increasing

Renewables

Partnering and third party services

67

Monetizing part of our development

pipeline and operating asset portfolio

through establishing long-term

partnerships

Increased financial flexibility and

diversified portfolio

Economies of scale, further development

of E.ON capabilities and of relationships

with long-term valuable partners

Complementary capabilities, allowing to

reduce LCOE and risks

Shared construction & operational risks

and smoother earnings profile

Additional income as construction

manager and operator of the sites

Full scale operations, maintenance, asset

and energy management services

Emergence of new financial players and

small/ midsized wind farm owners without

in-house technical competencies

Leveraging global experience to manage

risks on customer’s behalf

Asset-light business model and economies

of scale

Natural and complementary business

model to partnering

Partnering Third Party Services

Renewables

68

Alamo

Size: 24 MWDC

COD: May ’15

Buyer: Dominion

Maricopa West

Size: 28 MWDC

COD: Nov ’15

Buyer: Dominion

PV project delivery experience of >150

MW (14 projects), including development

and construction

Current geographical focus in US

Vast majority of the projects delivered on

time and on budget

In the past, focus on build to sell

Highly standardized development and

engineering to ensure end-to-end process

excellence and off-the-shelf PV project

delivery

Professional energy marketing enables

participation in tenders and requests for

proposals

92

49 11 152

US Italy France Total

1. Until end 2015

Recent projects (built & sold)

Key facts Capacity built1

Renewables

PV projects & initiatives

MW

1. Group overview


PreussenElektra

2. Financials

3. Core activities

Energy Networks

Customer Solutions

Renewables


Agenda

E.ON Investor Relations contact

70

Dr. Stephan Schönefuß T +49 (201) 184 28 22

Manager Investor Relations [email protected]

Alexander Karnick T+49 (201) 184 28 38

Vice President Investor Relations [email protected]

Martina Burger T +49 (201) 184 28 07

Manager Investor Relations [email protected]

Florian Floßmann T+49 (201) 184 28 33

Head of Investor Relations [email protected]

mailto:[email protected]

https://workspaces.intranet.eon.com/sites/IR-Test-Zugang/Research/Forms/AllItems.aspx

mailto:[email protected]

Reporting calendar & important links

71

Reporting calendar

May 11, 2016 Interim Report I: January – March 2016

June 8, 2016 2016 Annual Shareholders Meeting

August 10, 2016 Interim Report II: January – June 2016

November 9, 2016 Interim Report III: January – December 2016

Important links

Capital Market Story http://www.eon.com/en/investors/presentations/capital-market-story.html

Other Presentations http://www.eon.com/en/investors/presentations/special-topics.html

Annual Reports http://www.eon.com/en/about-us/publications/annual-report.html

Interim Reports http://www.eon.com/en/about-us/publications/interim-report.html

Facts & Figures http://www.eon.com/en/about-us/publications/facts-and-figures.html

Creditor Relations http://www.eon.com/en/investors/presentations/bonds.html

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