Disclaimer

1

The information contained herein is for informational purposes only and may

not be used, copied or distributed without the prior written consent of E.ON SE.

It represents the current view of E.ON SE as of the date of this presentation.

This presentation is not to be construed as an offer, or an amendment,

novation or settlement of a contract, or as a waiver of any terms of a contract

by E.ON SE. E.ON SE does not guarantee the accuracy of any of the

information provided herein.

SIEW 2014 keynote address: Navigating the global energy transition

Dr.-Ing. Leonhard Birnbaum E.ON SE, Member of the Board of Management Singapore, October 27th, 2014

E.ON: who are we?

1 Including electricity generation from hydro, wind, biomass and solar PV 2 Based on 2012 market data

3 Including Russia, US Renewables, JV Enerjisa (Turkey), ENEVA (Brazil) 4 Including 9m customers from JV Enerjisa

9 bcm gas storage

35m

sales customers4

300 TWh gas supply portfolio

global #3 in offshore wind2

29 billion kWh electricity produced from renewable technologies1,

equivalent to demand of 3m homes

5 bcm LNG regas capacity in Europe

14 GW generation capacity

outside of Europe3

40 GW conventional generation

capacity in Europe

62,000 employees

ranked #15 in

Fortune Global 500

Strictly confidential

Energy industry transformed in recent years by innovation and technology-driven changes

Scale of renewables Cheaper solar power Hydraulic fracturing

139 GW 17 GW

318 GW

2000 2013 2000 2013

1 GW

Global

Photovoltaic Global Wind

Europe 2013: 72%

of new installations

(22% in 2000)

1980 1990 1990 1990

1990 1990 2000

1990 1990

2010

Price down by 20% for

every doubling of

capacity

US gas 2012 20401 Net importer

of 42 bcm Net exporter

of 165 bcm

Increase in gas

resources changes

global macro picture

Mo

du

le P

rice

Cumulative Production

Source: E-World Energy

Germany has become the world’s laboratory for the energy transition

Unintended consequence of the German energy transition: the rapid demise of gas-fired generation

Change in load curve

35

45

55

65

0:00 2:00 4:00 6:00 8:00 10:0012:0014:0016:0018:0020:0022:00

Juli 10, durchschnittl. Last

Last - PV Juli 12 (29 GW Kapaz.)

6

German generation capacity

Despite efforts of the transition German power is now…

more carbon-intensive less stable more expensive

Energy transition not solely a German trend: EU has set ambitious targets to 2030

8

Renewable

Energy

Carbon Reduction Energy Efficiency

27% 20%

13%

Targets for 2020 Current Targets for 2030 (approved by EU Council Oct 24, 2014)

Source: EU Commission

20%

40%

18%

20% 27%

Strictly confidential

Looking forward: Megatrends will guide future innovation…

9

RISE OF THE INDIVIDUAL

ACCELERATED

NEW SOCIETY & ECONOMY

SUSTAINABILITY TECHNOLOGY

Strictly confidential

10

Individual Solutions

…and drive changes within the energy world

Centralized power production

Centralized gas supply

Same service for all customers

Pricing, reliability of supply and

environmental standards driven by

government

Significant economies of scale regarding

efficiency leading to large scale assets

Glocalization

Distributed generation (PV)

Distributed / mobile IT

Distributed flexibility (batteries)

Combined with services

Individual sales channels

Innovation

Centralized System

Challenge #1: building smarter energy systems

Cleaner & better

conventionals

Smart cities &

Microgrids Renewables E-Mobility &

Gas for Transport

Latin America Africa

North America Middle East

Oceania

Europe

+95 bcma

Asia

+344 bcma

38 (+38)

21 (+21)

4 (+1)

23 (+8)

35 (+8)

15 (+3)

63 (-4)

121 (+91)

90 (-19)

10 (+7)

Source: Wood Mackenzie

3 (-3)

+29 bcma from 2013 Atlantic Basin

+139 bcma from 2013

Pacific Basin

Americas

+21 bcma

Asia

Global LNG trade growth 2013-20

+49%

Middle East

+14 bcma

Challenge #2: building smarter energy supply chains

Seaborne LNG trade to 475 bcma by 2020

with Europe acting as a balancing market

Challenge #3: building smarter energy partnerships