E.ON SE

Earnings Release • Aug 13, 2008

News Details

Corporate | 13 August 2008 11:55

E.ON AG: E.ON again increases earnings

E.ON AG / Half Year Results/Half Year Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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E.ON again increases earnings
•Adjusted EBIT up 6 percent
•Economic value of investments at record level
•Full-year adjusted EBIT—and now also adjusted net income—expected to
increase by 5 to 10 percent

E.ON’s results for the first half of 2008 reflect significantly keener
competition on Europe’s power and gas markets and continued high commodity
and energy prices worldwide. In this increasingly difficult environment,
E.ON’s results surpassed the high level of the prior-year period. E.ON
increased sales by 16 percent year on year to €41.2 billion (prior year:
€35.6 billion), while adjusted EBIT of €5.8 billion was 6 percent above the
prior-year figure (€5.4 billion). E.ON’s adjusted net income climbed 8
percent to €3.3 billion. The implementation of the largest investment
program in E.ON’s history—€63 billion for 2007-2010—resulted in the
economic value of its investments in fixed assets and shareholdings
increasing sharply to €15.8 billion.

Fierce competition adversely affects E.ON UK and gas business

The Central Europe market unit’s adjusted EBIT of €2,713 million surpassed
the prior-year figure (€2,544 million) by 7 percent. Positive price effects
in the wholesale business were partially mitigated by the substantial
adverse effects of the shutdowns at Krümmel and Brunsbüttel nuclear power
stations (which have been offline since July 2007) and higher fuel and
electricity procurement costs.

Pan-European Gas’s adjusted EBIT rose by 3 percent year on year, from
€1,631 million to €1,679 million. Midstream’s adjusted EBIT was lower.
Despite a weather-driven increase in sales volume and higher earnings from
storage valuations, adjusted EBIT at midstream’s operating business
declined. Gas procurement costs rose significantly due to the indexing of
gas prices to heating oil prices. This adversely affected midstream’s
earnings because procurement prices reflect changes in heating oil prices
faster than sales prices do. Competitive pressure on sales prices was
another negative factor. In addition, price factors prevented the recording
of earnings on portfolio optimization between Continental European and U.K.
gas markets, as was done in the prior-year period. By contrast, upstream’s
adjusted EBIT was higher year on year, mainly because of higher energy
prices and increased production of oil and natural gas.

U.K.’s adjusted EBIT fell significantly, declining by 24 percent to €563
million (€741 million). The key reasons for the decline included
significantly lower retail margins which were only partially offset by
earnings improvements at the generation business. The appreciation of the
euro resulted in an adverse earnings effect of more than €80 million.
Nordic’s adjusted EBIT rose by 9 percent to €517 million (€475 million).
U.S. Midwest’s adjusted EBIT declined by 15 percent in reporting currency
due to the strong euro but was in line with the prior year in local
currency.

Energy Trading recorded an adjusted EBIT of €99 million, of which €42
million was in the optimization segment and €57 million in the proprietary
trading segment. Adjusted EBIT shown under Corporate Center/New Markets
amounted to €39 million, with the Climate & Renewables, Italy, and Russia
market units contributing €29 million, €75 million, and -€37 million,
respectively.

Investments significantly higher

E.ON’s adjusted net income surpassed the prior-year figure by 8 percent.
The economic value of E.ON’s investments again increased sharply. E.ON
invested €15.8 million in the first half of 2008, €13.2 billion more than
in the prior-year period. E.ON’s cash provided by operating activities in
the first six months of 2008 was 1 percent higher than the prior-year
figure.

Outlook for adjusted net income adjusted upward

E.ON continues to expect adjusted EBIT for full year 2008 to again surpass
the high prior-year figure and to increase by 5 to 10 percent. E.ON now
also expects adjusted net income for 2008 to surpass the prior-year figure
by 5 to 10 percent.

E.ON CEO Wulf H. Bernotat said: 'Our solid first-half results show that
we’ve positioned E.ON well in a tough competitive environment. By acquiring
assets in Italy, Spain, and France, we’re continuing E.ON’s rapid
internationalization. We now have a European platform for profitable,
primarily organic growth that’s unmatched by any other company in our
industry. Our investments in new power plants across Europe will enable us
to systematically seize the earnings and growth opportunities of European
energy markets.'

Disclaimer:
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 material differences between
the actual future results, financial situation, development or performance
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.
13.08.2008 Financial News transmitted by DGAP

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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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