DGAP-News: E.ON SE / Key word(s): Interim Report E.ON SE: E.ON off to strong start in new financial year 08.05.2018 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- E.ON off to strong start in new financial year - Forecast for 2018 adjusted EBIT and adjusted net income affirmed - First-quarter adjusted EBIT and adjusted net income up significantly year on year - Voluntary public takeover offer made for all innogy SE stock E.ON delivered a strong first quarter of 2018. Adjusted EBIT rose by 24 percent, from EUR1 billion in the prior year to EUR1.3 billion. Adjusted net income of EUR727 million surpassed the weak prior-year figure of EUR525 million by 38 percent. Forecast for 2018 financial year affirmed At the presentation of E.ON's quarterly statement for the first quarter of 2018 in Essen, E.ON CFO Marc Spieker affirmed the company's forecast for the 2018 financial year: "The first quarter seamlessly continued our positive performance of last year. Our operating business is strong. We achieved significant growth by adding more than 50,000 customers in Germany. This is a fine achievement by the colleagues at our sales business and demonstrates that customers trust us. All the key figures and developments for the entire Group are in line with our plan, and we therefore affirm our forecast for full-year 2018." E.ON continues to expect the Group's full-year adjusted EBIT to be between EUR2.8 and EUR3 billion and its full-year adjusted net income to be between EUR1.3 and EUR1.5 billion. Good performance at customer business in Germany The Customer Solutions segment in particular contributed to E.ON's very good first-quarter earnings performance. Its sales of EUR6.7 billion were slightly above the prior-year figure of EUR6.5 billion. But its adjusted EBIT surpassed the very weak prior-year figure by 23 percent, increasing from EUR319 million to EUR392 million. A particularly significant contribution came from the customer solutions business in the German market. The Energy Networks segment again generated more than half of E.ON's earnings. In the first three months of this year, however, its earnings were affected by the disposal of Hamburg Netz GmbH and by anticipated regulatory items. Its adjusted EBIT of EUR642 million was about 5 percent below the prior-year figure. The Renewables segment's earnings reflected two countervailing effects. On the one hand, its installed capacity was higher than in the prior-year period due to the addition of new wind farms. On the other, the sales prices for its power output declined. On balance, however, its earnings rose by about 7 percent to EUR171 million. Earnings at Non-Core Business, which consists primarily of PreussenElektra, returned to normal. The prior-year figure was adversely affected by unplanned outages and an extended overhaul at Brokdorf nuclear power station. Consequently, this segment's first-quarter earnings rose from -EUR24 million last year to EUR109 million. Cash flow weaker due to seasonal factors At EUR0.1 billion, E.ON's operating cash flow from continuing operations was EUR0.7 billion lower than in the prior-year period, which benefited from nonrecurring items. It reflects a seasonal delay that is typical for a first quarter in the energy business. The supply costs in the energy sales are significantly higher in the winter, whereas customers' payments are distributed evenly over the year. This effect will resolve itself as the year moves forward. Debt to decline further as year moves forward The seasonal decline in E.ON's operating cash flow caused its economic net debt to increase slightly relative to year-end 2017. By the end of the year, however, it will decrease substantially from its current level of EUR19.7 billion owing to the planned sale of E.ON's Uniper stake and the planned transfer of its Nord Stream 1 stake into a pension CTA. "E.ON's debt-reduction program is right on course," Spieker said. Uniper disposal on schedule The positive decision made on April 28, 2018, by the Russian Government Commission on Monitoring Foreign Investment fulfilled another important precondition for Fortum to acquire E.ON's 46.65-percent stake in Uniper. E.ON is confident that the European Commission and Russia's antitrust agency will issue their approvals in the months ahead so that E.ON and Fortum can complete the transaction as planned. Voluntary public takeover offer for innogy stock After concluding an asset-swap agreement with RWE in March, on April 27, 2018, E.ON made a voluntary public takeover offer for innogy stock. The offer gives innogy shareholders the opportunity to obtain a considerable premium relative to the price of innogy stock on February 22, before it was influenced by speculation about a takeover and to already assure themselves of a EUR1.64 dividend for the current financial year. 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 SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to align them to future events or developments. --------------------------------------------------------------------------- 08.05.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: E.ON SE Brüsseler Platz 1 45131 Essen Germany Phone: +49 (0)201-184 00 E-mail: [email protected] Internet: www.eon.com ISIN: DE000ENAG999 WKN: ENAG99 Indices: DAX, EURO STOXX 50 Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 683379 08.05.2018