E.ON SE

Earnings Release • Feb 10, 2009

News Details

Ad-hoc | 10 February 2009 08:30

E.ON AG: E.ON to record impairment charge, expects 7-8 percent increase in 2008 earnings and higher per-share dividend

E.ON AG / Final Results/Dividend

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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E.ON to record impairment charge, expects 7-8 percent increase in 2008
earnings and higher per-share dividend

In preparing its Consolidated Financial Statements, E.ON AG is required
under IAS 36 to perform impairment tests on a regular basis. In E.ON’s
Consolidated Financial Statements for 2008, the impairment tests will
result in an impairment charge of €1.5 billion on goodwill for the
company’s U.S. Midwest market unit and an impairment charge of roughly €1.8
billion on the difference between the book value and the fair value of the
operations in Italy, Spain, and France that it acquired from Enel/Acciona
and Endesa. The main reasons for the U.S. Midwest impairment charge are an
increase in the market-unit-specific cost of capital and lower long-term
growth rates due to the deterioration of the overall economic situation.
The increase in Italy’s corporate tax rate from 27.5 percent to 33 percent
for companies in the energy, banking, and insurance industries is a main
factor in the impairment charge regarding the shareholdings and power
stations acquired from Enel/Acciona and Endesa. In addition, the outlook
for the Italian energy market became gloomier in the fall of 2008, in part
due to regulatory intervention in wholesale markets and to the current
reduction in power production resulting from a delay in the start of
operations at certain power plants. At the time the transaction closed,
these factors, among others, were not fully apparent.

The impairment charges will reduce E.ON’s consolidated net income. But they
will not affect the company’s adjusted EBIT or its adjusted net income, the
key figure E.ON uses to determine its dividend payout.

Based on preliminary numbers, E.ON expects its adjusted EBIT for 2008 to
surpass the prior-year figure by 7 to 8 percent. The company anticipates a
similar increase in adjusted net income. Based on this figure, the E.ON
Board of Management anticipates that it would propose to the E.ON
Supervisory Board that the company pay a dividend of €1.50 per share.
Adjusted for E.ON’s stock split, this represents an increase of roughly 9.5
percent on the dividend for the 2007 financial year. These figures are
based on E.ON AG’s preliminary and unaudited Consolidated Financial
Statements and are therefore subject to change.

Dr. Jens Schreiber
Corporate Communications
E.ON AG
+49-211-4579-544 or -453
jens.schreiber@eon.com

10.02.2009 Financial News transmitted by DGAP

Language: English
Issuer: E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Deutschland
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, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Stuttgart, München, Hamburg;
Terminbörse EUREX; Foreign Exchange(s) Mailand

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