E.ON SE

Earnings Release • May 9, 2012

News Details

Corporate | 9 May 2012 07:30

E.ON AG: E.ON off to a positive start in 2012

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

09.05.2012 / 07:30

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E.ON off to a positive start in 2012

• EBITDA* up 9 percent, underlying net income up 27 percent year on year

• Full-year 2012 EBITDA still expected to be between EUR9.6 and EUR10.2
  billion, underlying net income between EUR2.3 and EUR2.7 billion

E.ON AG has made a successful start to 2012. The Düsseldorf-based energy
company put in a positive first-quarter performance, increasing its EBITDA
by 9 percent year on year to around EUR3.8 billion and its underlying net
income by 27 percent to around EUR1.7 billion.

'As we described in March, we're now past the worst. Our first-quarter
results confirmed this trend. We're making good progress. But we still need
to be resolute about meeting our current challenges and implementing the
changes we've initiated,' said CFO Marcus Schenck as he presented E.ON's
first-quarter results.

E.ON's sales rose by 28 percent year on year to EUR35.7 billion, owing in
particular to higher sales in the Optimization & Trading segment. This was
primarily the result of an increase in trading activity to optimize E.ON's
generation fleet. The Renewables, Germany, and Russia segments also posted
higher sales. Sales were significantly lower in the Generation segment due
to the absence of output from nuclear power stations in Germany that were
mandatorily shut down in 2011.

In detail, E.ON grew its EBITDA by 9 percent year on year to around EUR3.8
billion, mainly because:

• earnings at its Optimization & Trading activities were roughly EUR400
  million above the prior-year figure, due in particular to earnings
  improvements totaling about EUR340 million resulting from the successful
  renegotiation of a significant percentage of the company's long-term gas
  procurement contracts

• earnings in Russia were up by 30 percent to around EUR200 million, due
  chiefly to an increase in installed generating capacity relative to the
  prior-year period

• on the adverse side, lower prices in Europe power generation markets and
  the absence of output from nuclear power stations in Germany that were
  mandatorily shut down in 2011 reduced E.ON's first-quarter earnings by a
  total of about EUR250 million.

E.ON's underlying net income rose by 27 percent to about EUR1.7 billion,
mainly because of the increase in EBITDA. A lower tax expense was another
positive factor. Amortization and economic interest expense were at the
prior-year level.

E.ON's first-quarter investments in property, plant, and equipment,
intangible assets, and shareholdings totaled EUR1.2 billion, roughly the
same as the prior-year figure.

Operating cash flow declined by 51 percent year on year to roughly EUR450
million. Positive effects from the EBITDA increase and a decline in working
capital were more than offset by significant withholding taxes which E.ON
expects to be refunded in the second half of the year.

E.ON's economic net debt stood at EUR37.6 billion at the end of the first
quarter, about EUR1.2 billion more than at year-end 2011. Higher provisions
for pensions, relating primarily to a decline in the discount rate in
Germany, were the main factor. Another factor was the decline in our
first-quarter operating cash flow.

On the basis of its current business portfolio, E.ON continues to anticipate
that its full-year 2012 EBITDA* will be between EUR9.6 and EUR10.2 billion
and its underlying net income between EUR2.3 and EUR2.7 billion. E.ON
continues to plan to pay a dividend of EUR1.10 per share for the 2012
financial year. It also reaffirmed its forecast for 2013. E.ON expects
EBITDA of EUR11.6 to EUR12.3 billion and underlying net income of EUR3.2 to
EUR3.7 billion. It continues to plan to pay a dividend of at least EUR1.10
per share for the 2013 financial year.

*Adjusted for extraordinary effects.

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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.

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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