E.ON SE

Earnings Release • Nov 13, 2012

News Details

Corporate | 13 November 2012 07:30

E.ON AG: E.ON reaffirms earnings forecast for 2012, will review medium-term guidance

E.ON AG / Key word(s): Interim Report/Forecast

13.11.2012 / 07:30

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E.ON reaffirms earnings forecast for 2012, will review medium-term guidance

* Nine-month EBITDA *1) at roughly EUR8.8 billion, underlying net income at
EUR4 billion

* Full-year 2012 EBITDA expected to be between EUR10.4 and EUR11 billion,
underlying net income between EUR4.1 and EUR4.5 billion

* E.ON confirms plan to pay out a dividend of EUR1.10 per share for 2012

Düsseldorf-based E.ON AG posted EBITDA of roughly EUR8.8 billion and
underlying net income of roughly EUR4 billion for the first nine months of
the 2012 financial year. The results remain in line with the company's
upgraded forecast from August.

Nine-month sales of EUR93.6 billion were 21 percent above the prior-year
figure. E.ON's Optimization & Trading segment and its network and sales
businesses in Germany recorded particularly significant sales increases. By
contrast, sales declined significantly at E.ON's nuclear and fossil
generation business. The main reasons were the shutdown of nuclear power
stations in Germany pursuant to the amendment of the Nuclear Energy Act
along with lower capacity utilization at E.ON's European generation fleet.

E.ON's nine-month EBITDA of EUR8.8 billion surpassed the prior-year figure
by EUR2.3 billion. The main reasons for the increase were significant
improvements in E.ON's wholesale gas business owing to the renegotiation of
procurement contracts with gas producers, the non-recurrence of the adverse
impact of the amended Nuclear Energy Act in Germany, and the operation of
three new gas-fired generating units in Russia. In addition, E.ON 2.0, a
group-wide efficiency program, began to have an earnings impact. The
biggest contributions to EBITDA came from Optimization & Trading and the
Germany regional unit, which improved its earnings by EUR258 million, owing
in part to cost savings.

'Our nine-month results reflect the first successes of the transformation
of our company and our ongoing efficiency-enhancement programs. But they
also clearly indicate that we face huge challenges, particularly in our
generation business,' E.ON CEO Dr. Johannes Teyssen said. 'That's why we're
further optimizing our conventional generation portfolio and also exploring
whether to close some assets. Where assets are important for ensuring the
stability of the power supply, we're working with system operators and
government agencies to find interim solutions.'

Underlying net income rose to roughly EUR4 billion, mainly because of the
EBITDA increase. Non-operating earnings were 23 percent higher,
particularly because of amortization charges. At EUR4.3 billion, nine-month
investments in property, plant, and equipment, intangible assets, and
equity interests were slightly above the prior-year figure. Operating cash
flow increased significantly year on year, rising to about EUR6.8 billion.
Cash-effective items in the EBITDA increase constituted one of the positive
factors. E.ON's economic net debt stood at -EUR35.6 billion at the end of
the third quarter, roughly EUR800 million less than at year-end 2011. Key
reasons for the improvement were positive cash and divestment proceeds.

On the basis of its current business portfolio, E.ON continues to expect
its full-year 2012 EBITDA to be between EUR10.4 and EUR11 billion and its
underlying net income to be between EUR4.1 and EUR4.5 billion. It also
stands by its plan to pay out a dividend of EUR1.10 per share for the 2012
financial year.

Considering the substantial economic uncertainties and the structural
changes in the energy industry, E.ON's previous 2013 forecast no longer
seems achievable. E.ON is therefore reviewing its 2013 forecast and
statements regarding 2015 as part of its current planning process.

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*1)Adjusted for extraordinary effects.

This press release 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 materi-al differences between
the actual future results, financial situation, development or perfor-mance
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.

End of Corporate News

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Language: English
Company: E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Germany
Phone: +49 (0)211 4579-0
Fax: +49 (0)211 45 79-5 01
E-mail: investorrelations@eon.com
Internet: www.eon.com
ISIN: DE000ENAG999
WKN: ENAG99
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX; Mailand

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