E.ON AG Annual Report 2023

FY2023 Annual Report · E.ON AG

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Integrated Annual Report 2023

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We are the playmaker of change in the
energy industry. Leading the way in
innovative, sustainable, digital-first
solutions that transform the way Europe
is powered for all.

E.ON Integrated Annual Report 2023

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Europe’s energy system is becoming
ever lower in CO2, more decentralized,
and more digital. In short: more
sustainable.
Our two core businesses—energy networks
and customer solutions—are playing a big role
in making this happen. E.ON is one of Europe’s
largest operators of energy networks and
energy infrastructure and providers of
innovative customer solutions. The
contribution of our roughly 75,000 employees
is therefore crucial to successfully propelling
the energy transition in Europe.

About E.ON

Energy Networks
Our distribution networks are the backbone of the new
energy world. We are gradually developing them into
intelligent platforms that control complex energy and
data flows and provide customers with new options for
dealing with energy. Without distribution networks there
can be no energy transition and no climate protection. The
expansion, modernization, and operation of distribution
networks support security of supply and ensure the most
efficient use of green electricity. This makes our networks
the foundation of livable cities, communities, and regions.

Customer Solutions
Our solutions help customers meet their personal energy
needs and decarbonization goals. This includes energy
sales, which offers a wide range of green electricity and
green gas tariffs, as well as our solutions business, which
provides innovative, sustainable, and digital products and
services. Solar power systems, eMobility, energy storage,
sensible energy control, and solutions for sector
integration enable our customers to reduce their costs
and emissions and also to increase their comfort and
quality of life. This applies equally to residential
customers and small businesses as well as large
companies and municipalities.

E.ON Integrated Annual Report 2023

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Business Highlights

To Our Investors

Combined Group Management Report

Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes

Other Information

Corporate Profile
Climate Protection and Environmental Management
Employees and Society
Governance
Sustainable Finance and Investment
Business Report
Forecast Report
Risks and Chances Report
Disclosures Pursuant to Section 289, Paragraph 4, and Section 315, Paragraph 4 of the
German Commercial Code on the Internal Control System for the Accounting Process 128
Disclosures Pursuant to Section 289a and Section 315a of the German Commercial
Code and Explanatory Report

29
40
55
74
85
94
118
120

131

Consolidated Financial Statements

Consolidated Statement of Income
Consolidated Statement of Recognized Income and Expenses
Consolidated Balance Sheets

133

134
135
136

Declaration of the Board of Management
Independent auditor’s report
Independent Assurance Practitioner's Report
Boards
Summary of Financial Highlights
Task Force on Climate-related Financial Disclosures (“TCFD”)
ESG Figures
EU Taxonomy
Global Reporting Initiative (“GRI”) Index
Non-Financial Statement (“NFS”) Index
Sustainable Development Goals (“SDG”)-Index
Sustainable Accounting Standards Board (“SASB”) Index
Financial Calendar and Imprint

138
140
142

249

250
251
257
260
264
266
267
272
285
291
292
293
299

E.ON Integrated Annual Report 2023

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Investment tempo accelerated and a total of
€6.4 billion invested in 2023

E.ON successfully continued growth path in 2023
and surpassed forecast in part owing to temporary
effects, posting adjusted EBITDA of €9.4 billion and
adjusted net income of €3.1 billion for the 2023
financial year

Outlook for the 2024 financial year: adjusted
EBITDA of €8.8 and €9.0 billion and adjusted net
income of €2.8 and €3.0 billion anticipated

Dividend of €0.53 per share proposed for the 2023
financial year, a year-on-year increase of 4 percent

Debt factor of 4.0 at year-end 2023 significantly
below the maximum figure of 5.0

Business Highlights

E.ON Integrated Annual Report 2023

How We Create Value

The following overview uses examples and relevant data to show how we create value for our stakeholders. The three key elements of
E.ON’s strategy—sustainability, digitalization, and growth—are the centerpiece of our business model and deeply embedded in the way
we think, work, and impact people’s lives. This overview is guided by the International Integrated Reporting Council’s (“IIRC”) framework.

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E.ON Integrated Annual Report 2023

How We Make an Impact

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E.ON Integrated Annual Report 2023

Key Performance Indicators

Financial

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E.ON Integrated Annual Report 2023

Key Figures of the E.ON Group

Financial

1Adjusted for non-operating effects. · 2The figure for asset-retirement obligations at December 31,
2023, does not fully correspond to the figure shown in the Consolidated Balance Sheets. This is
because economic net debt is calculated in part based on the actual amount of E.ON’s obligations. The
figure at December 31, 2022, corresponded to the figure shown in the Consolidated Balance Sheets. ·
3Change in percentage points. · 4Attributable to shareholders of E.ON SE. · 5Based on shares
outstanding (weighted average). · 6For the respective financial year; the 2023 figure represents
management’s dividend proposal.

Financial Figures
€ in millions
Sales
Adjusted EBITDA1
– Regulated business (%)
– Quasi-regulated and long-term contracted business (%)
– Merchant business (%)
Adjusted EBIT1
Net income/loss
Net income/loss attributable to shareholders of E.ON SE
Adjusted net income1
Investments
Cash provided by operating activities
Cash provided by operating activities before interest and taxes
Economic net debt (at year-end)2
Debt factor2
Credit rating S&P
Credit rating Moody's
Credit rating Fitch
Average capital employed
Equity
Total assets
Cash Conversion Rate (%)
ROCE (%)
Earnings per share4, 5 (€)
Adjusted net income per share4, 5 (€)
Dividend per share6 (€)
Dividend payout

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2023
93,686
9,370
70
3
27
6,387
760
517
3,068
6,421
5,654
7,225
37,691
4.0
BBB
Baa2
BBB+
59,895
19,970
113,506
80
10.7
0.20
1.18
0.53
1,384

2022
115,660
8,059
66
4
30
5,197
2,242
1,831
2,728
4,753
10,045
11,511
32,742
4.1
BBB
Baa2
BBB+
58,760
21,867
134,009
151
8.8
0.70
1.05
0.51
1,331

+/- %
-19
16
6
-25
-10
23
-66
-72
12
35
-44
-37
15
-2
0
0
0
2
-9
-15
-47 3
22 3
-71
12
4
4

E.ON Integrated Annual Report 2023

Key Performance Indicators

Sustainability

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E.ON Integrated Annual Report 2023

Key Figures of the E.ON Group

Sustainability

1Proportion of taxonomy-aligned capex, opex, and sales relative to taxonomy-eligible activities. · 2This
KPI quantifies the avoided emissions that contribute to a low-carbon economy in connection with our
customers, assets, and solutions. 3The proportion of renewables capacity calculated as a percentage of
the total sum of all installed generating capacity. 4Number of employees does not include apprentices,
working students, or interns. · 5Serious incidents and fatalities ("SIF") among employees: safety incidents
per million hours of work. · 6Lost time injury frequency ("LTIF") measures work-related accidents
resulting in lost time per million hours of work. · 7Average number of formal training hours per employee
per year. · 8System average interruption duration index ("SAIDI") for power. · 9Refers to shareholder
representatives.

Sustainability Figures

Environment
CO2 emissions:

Scope 1 (millions of metric tons)
Scope 2 (millions of metric tons) (location-based)
Scope 3 (millions of metric tons) (market-based)

EU taxonomy aligned capex (%)1
EU taxonomy aligned opex (%)1
EU taxonomy aligned sales (%)1
Avoided CO2 emissions together with our customers (millions of metric tons)2
Share of renewable generation plants connected to E.ON's power grid (%)3
Ecological network corridor management (%)
Number of smart energy meter installations (thousands)
Number of smart heat meter installations (thousands)
Number of charging points sold by E.ON
Green power as a proportion of total power sales (%)
Social
Employees of the E.ON Group (at year-end)4
Proportion of women (%)
Average age of employees
Serious incidents and fatalities ("SIF") among employees5
Lost time injury frequency ("LTIF") among employees6
Proportion of women executives (%)
People development (hours per employee)7
System average interruption duration index ("SAIDI") (minutes)8

Germany
Sweden
Czech Republic

Community contribution (€ in millions)
Volunteer activities of E.ON employees (number of volunteer hours)
Governance
Proportion of women on the Supervisory Board (%)9
Proportion of independent Supervisory Board members (%)
ESG targets included in Management Board compensation

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2023

2022

2.01
3.46
65.23
98
98
97
106
86
12
13,803
94
23,923
54

74,618
32
42
0.03
2.2
24
22.0

21
156
253
22
22,129

38
100


2.88
3.38
82.58
98
97
97
108
85
8
12,178
n.a.
20,417
44

71,613
31
42
0.04
2.1
23
18.2

24
121
451
18
13,340

30
100


E.ON Integrated Annual Report 2023

Key Performance Indicators

Energy Networks

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E.ON Integrated Annual Report 2023

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Key Performance Indicators

Customer
Solutions

E.ON Integrated Annual Report 2023

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Good Reasons to Invest in E.ON Stock

Energy Networks

Strategic Foundation

Long-term green growth in a
regulated environment
Multi-decade growth opportunities from
the green energy transition and a
regulated business nature provide for a
visible and profitable earnings path

Digitalization and sustainability as
strategic backbones
Pioneering the digital transformation of
the energy sector and applying strict
sustainability criteria as the core
foundation for steering the Company

Energy Infrastructure Solutions

Financial strategy

Growth acceleration from contracted
infrastructure
Best-in-class infrastructure portfolio
capitalizing upon decarbonization needs
for cities and industries

Focus on value-creation and
shareholder returns
Clear value-creation focus and solid
financial headroom ensuring an attractive
shareholder return outlook including
dividends and earnings growth

Energy Retail

To Our Investors

Attractive returns and reliable cash
generation
Healthy cash flows from a diversified and
capital light business. Leveraging
customer base to grow a solutions
portfolio addressing the rising demand for
electrification

E.ON Integrated Annual Report 2023

To Our Investors

→ E.ON on the Capital Market

→ CEO Letter

→ Report of the Supervisory Board

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To Our Investors

E.ON on the Capital Market

Wars and Crises Affect Capital Markets
E.ON stock’s value performance at the end of 2023 had improved by 30 percent relative to
its year-end closing price for 2022, thereby outperforming the DAX index of blue-chip
German stocks (20 percent) and also its European peer index, the Euro Stoxx 600 Utilities
(12 percent). On December 29, 2023, E.ON stock closed the year at a price of €12.15
compared with €9.33 at year-end 2022. High inflation, prime interest rate hikes along with
concerns about more interest rate increases, economic uncertainty, the ongoing war in
Ukraine, and the escalation of the Middle East conflict had a significant impact on the
performance of European and German stocks in 2023.

Continuous Dividend Growth
At the 2024 Annual Shareholders Meeting on May 16, 2024, the Management Board and
Supervisory Board will propose paying out a cash dividend of €0.53 per share for the 2023
financial year (prior year: €0.51). Based on E.ON stock’s year-end 2023 closing price, the
dividend yield is 4 percent. The payout ratio (as a percentage of adjusted net income) is 45
percent. Our dividend policy aims to offer our shareholders attractive dividend growth of up
to 5 percent annually.

E.ON Stock Key Figures
Per share (€)
Dividend1
Dividend payout1 (€ in millions)
Twelve-month high2
Twelve-month low2
Year-end closing price2
Market capitalization3 (€ in billions)
1For the respective financial year; the 2023 figure represents management’s dividend proposal.
2Source: NASDAQ.
3Based on ordinary shares outstanding at year-end.

2023
0.53
1,384
12.63
9.47
12.15
33.77

2022
0.51
1,331
12.38
7.41
9.33
24.65

E.ON Integrated Annual Report 2023

To Our Investors

→ E.ON on the Capital Market

→ CEO Letter

→ Report of the Supervisory Board

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Broad International Investor Base
The most recent survey at year-end 2023 shows that E.ON stock has roughly 60 percent
institutional investors, roughly 21 percent retail investors, and about 19 percent other
investors. Investors in Germany hold about 42 percent of E.ON stock, those outside
Germany about 58 percent.

E.ON Stock Is Represented on Numerous Stock Exchanges and in a Variety of
Indices
E.ON stock trades in Frankfurt am Main and on other German stock exchanges as well as
via electronic trading platforms such as Xetra. It is also available on stock exchanges in
other European countries. E.ON stock is included in the DAX and other indices in Europe,
such as the Euro Stoxx 600 Utilities, MSCI World, and the S&P Europe 350.

E.ON stock trades over the counter on OTC Pink in the United States in the form of
American depositary receipts (“ADRs”). E.ON’s ADR program offers U.S. investors the
opportunity to acquire E.ON stock and hold it in the form of share certificates that are
traded and settled like other U.S. stocks.

Analyst Estimates
E.ON stock is rated by a large number of financial analysts from various investment banks
and brokerage houses. The current recommendations can be viewed at
www.eon.com/en/analysts-estimates.

E.ON Stock Symbols and Identification Numbers
Reuters: Xetra
Reuters: Frankfurt Stock Exchange
Bloomberg: Frankfurt Stock Exchange
Bloomberg: ADR over-the-counter code
Security Identification Numbers
Germany
International Securities Identification Number (ISIN)

EONGn.DE
EONGn.F
EOAN GY
EOANGY US

ENAG99
DE000ENAG999

E.ON Integrated Annual Report 2023

To Our Investors

→ E.ON on the Capital Market

→ CEO Letter

→ Report of the Supervisory Board

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Financial Framework for Sustainable Funding
Sustainability aspects play an increasingly important role in many
international investors’ decision for or against a particular
investment. In 2021 E.ON became the first company to fully align
its Green Bond Framework, under which it issues debt instruments
whose issuance proceeds fund sustainable investment projects,
not only with the ICMA Green Bond Principles but also with the EU
Taxonomy. The EU Taxonomy Regulation defines which economic
activities are classified as environmentally sustainable, thereby
setting a Europe-wide standard for sustainable investment. E.ON
generally intends to cover more than 50 percent of its annual
financing requirements with green bonds. Green bonds accounted
for about 75 percent of total bond financing of just under €2.5
billion in 2023. We provide detailed information on the topic of
financing in the Financial Situation chapter.

Ongoing Investor Communications
Our investor relations continue to be founded on four principles:
openness, continuity, credibility, and equal treatment of all our
investors. Our mission is to provide prompt, precise, and relevant
information at our periodic conferences and road shows
worldwide—because maintaining regular communications and
relationships is essential for good investor relations. The subsiding
of the Covid-19 pandemic enabled us to carry out a significant part
of our investor relations activities in 2022 in person. A hybrid
approach of virtual and in-person activities has proven to be
effective. This helps us communicate with capital markets
efficiently and purposefully and meet our investors’ needs.

Foresightful Funding, Stable Credit Rating
Debt capital represents a very important financing source for the
E.ON Group. That is why we focus on satisfying the demands of
creditors as well as those of shareholders. During the year under
review, the credit ratings of Standard & Poor’s, Moody’s, and Fitch
remained stable, reflecting the confidence in E.ON’s
creditworthiness and thus supporting its competitiveness for
future financing activities.

E.ON issued euro-denominated bonds totaling €3.3 billion in the
2023 financial year and, at year-end 2023, had a solid funding
situation that serves in part as prefinancing for the 2024 financial
year. In addition, E.ON continually aims to maximize the diversity
of its investor base to ensure that it has cost-optimized access to a
variety of funding sources at all times. This periodically exploring
opportunities for issuing bonds in other currencies.

E.ON has a €10 billion Commercial Paper (“CP“) program and a
US$10 billion CP program, under which it can issue short-term
notes.

E.ON Integrated Annual Report 2023

The E.ON
Management
Board

The Management Board manages the Company’s
business, with all its members bearing joint
responsibility. It determines E.ON’s corporate
objectives, fundamental strategic course,
corporate policy, and organizational setup.

From left to right:

Marc Spieker
Chief Financial Officer

Victoria Ossadnik
Chief Operating Officer Digital

Thomas König
Chief Operating Officer
Networks

Patrick Lammers
Chief Operating Officer
Commercial

Leonhard Birnbaum
Chief Executive Officer

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E.ON Integrated Annual Report 2023

To Our Investors

→ E.ON on the Capital Market

→ CEO Letter

→ Report of the Supervisory Board

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CEO Letter

Dear Shareholders and Friends of E.ON,

When I became CEO three years ago, I predicated a decade of growth. A lot has happened
since then: the Covid pandemic, natural and climate disasters at many E.ON locations
around Europe, the war in Ukraine and the attendant energy crisis, the uptick in interest
rates, and Europe’s economic downturn. All of this has presented us with enormous
challenges. But none of it has altered our solid growth prospects. On the contrary, in 2023
we again defied difficult circumstances. We again delivered strong earnings—€9.4 billion in
Group adjusted EBITDA—that exceeded our expectations for the 2023 financial year. And
we again recorded growth in our financial results and investments. Our growth strategy,
which is propelled by the trend toward sustainability and the need for full digitalization,
remains valid. Our billions of euros of investments in the energy transition enable us to
provide what Europe needs now more than ever: new energy infrastructure for sustainable,
secure, and affordable energy.

Renewables expansion is happening worldwide and in all types of locations. In France
despite nuclear power. In Poland despite hard coal. In Asia despite the simultaneous
expansion of conventional generation. In southern states of the USA despite the fact that

Leonhard Birnbaum
Management Board
Chairman and CEO

climate action is almost a dirty word there. Part one of the transition is therefore well
advanced and continues to progress inexorably. But part two is still almost at the beginning.
The transition is no longer just about big wind and solar farms. It’s about solutions for
decarbonizing households and industry that, after the experiences of the energy crisis, are
increasingly considered to be safeguards for a stable and affordable energy supply. It’s
about electrifying transportation and heating and air conditioning systems for buildings.
And all of this requires network connections and a global expansion and upgrade of existing
networks. The IEA’s most recent World Energy Outlook predicts that global network
infrastructure will need to be doubled.

We strategically aligned E.ON to precisely these needs. And we increasingly benefit from
them. In the 2023 financial year, our two core segments—Energy Networks and Customer
Solutions—grew in almost all of our European markets relative to the prior year. We’re
investing even more and even faster in the energy transition. We’ll again massively expand
our planned investments for 2024–2028 to a total of €42 billion compared with the €21
billion we’d planned for the five years starting in 2021.

E.ON Integrated Annual Report 2023

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→ Report of the Supervisory Board

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All of this fills us with optimism and with completely new self-confidence regarding our
future business development. After all, the network business in particular has
metamorphized in recent years. It has become a growth business that’s increasingly
attracting the attention of policymakers, the general public, and investors. For good reason:
our networks are critical for the energy transition.

The final weeks of the 2023 calendar year almost marked something of a turning point in
this regard. First, the European Commission adopted a Grid Action Plan, thereby putting
grid expansion at the top of its energy transition agenda—something that would have been
unthinkable just a few years ago. Second, just before Christmas, European policymakers
also agreed on a constructive reform of Europe’s electricity market design. All calls for more
government intervention were met with a clear and correct message: the key to a
sustainable, reliable, and affordable energy future is private investment. And in particular
this means investments in network infrastructure and decarbonization solutions like those
made by E.ON, one of Europe‘s leading companies in this area.

I consider this to be a great opportunity for our Group. And we want to seize it by making
our leading role in the energy transition even more visible. In the interests of our customers,
in the interests of our shareholders, and in the interests of society at large. This means that
we’ll continue to invest to satisfy the rising demand for energy infrastructure. But it also
means that we’ll lead the way where others hesitate—like in the promising area of network
flexibility. And it also means that in the future our corporate image will change.

We’ve purposely not rebranded E.ON during the Group’s recent years of fundamental
changes and restructuring. But if not now, when? We think it’s time for our brand image to
reflect our central role and our new self-confidence. And that’s why we on the Management
Board have made the unanimous decision to align the E.ON brand with our future growth
and our leadership ambitions in the energy world.

These days, the public is getting to know E.ON in a new guise and with clear ambitions that
go far beyond marketing. We’re showing who we want to be: the playmaker of Europe’s
energy transition. And we’ll do what a playmaker does: shape the game.

Best wishes,

Leo Birnbaum

E.ON Integrated Annual Report 2023

To Our Investors

→ E.ON on the Capital Market

→ CEO Letter

→ Report of the Supervisory Board

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Report of the
Supervisory
Board

Dear Shareholders,

2023 was a special year for E.ON. The transformation of Europe’s energy system in the
wake of Russia’s war of aggression against Ukraine continued to gain pace. E.ON played a
key role in it. In a continued volatile market environment, it was necessary to reaffirm the
implementation of E.ON’s growth strategy and the accompanying significant investments in
network expansion and decarbonization solutions. The energy industry will be where
growth happens in the year ahead. This entails an obligation as well: realizing this growth
potential is what will make E.ON successful. The Supervisory Board would like to thank the
Management Board and all employees for the special efforts they made last year.

In the 2023 financial year the Supervisory Board carefully performed all its duties and
obligations under law, the Company’s Articles of Association, and its own rules and
procedures. It advised the Management Board in detail about the Company’s management
and continually monitored the Management Board’s activities, assuring itself that the
Company’s management was legal, purposeful, and orderly. At five regular meetings it

Erich Clementi
Chairman of the
Supervisory Board

addressed all issues relevant to the Company. In addition, it carried out one written
resolution procedure. On a regular basis, the shareholder representatives and employee
representatives made separate preparations for these meetings with the participation of
one or several members of the Management Board. Three members were each unable to
attend one Supervisory Board meeting; otherwise, all members attended all meetings.

The Management Board regularly provided the Supervisory Board with timely and
comprehensive information about significant business transactions in both written and oral
form. At the meetings of the full Supervisory Board and its committees, the Supervisory
Board had sufficient opportunity to actively discuss the Management Board’s reports,
motions, and proposed resolutions. After thoroughly examining and discussing the
resolutions proposed by the Management Board, the Supervisory Board voted on them
when it was required by law, the Company’s Articles of Association, or the Supervisory
Board’s rules and procedures. Furthermore, the Supervisory Board also met on a recurring
basis without the Management Board being present.

E.ON Integrated Annual Report 2023

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→ CEO Letter

→ Report of the Supervisory Board

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In addition, there was a regular exchange of information between the Chairman of the
Supervisory Board and the members of the Management Board, in particular the Chairman,
during the entire financial year. In the case of particularly pertinent issues, the Chairman of
the Supervisory Board was kept informed at all times. He likewise maintained contact with
the members of the Supervisory Board outside of board meetings.

All meetings of the Supervisory Board and its committees took place in person. Members of
the Supervisory Board unable to attend in person were given the opportunity to attend by
means of video conference. This was made use of in some instances.

Implementation of E.ON’s Growth Strategy

In the 2023 financial year, the Supervisory Board fulfilled discussed E.ON’s strategic
direction with the Management Board, in particular in view of the altered geopolitical and
regulatory situations. The Management Board the members of the Supervisory Board were
in agreement regarding the measures presented by the Management Board. In addition, the
Management Board informed the Supervisory Board on an ongoing basis about growth
projects and the development of innovative growth businesses.

Key Topics of the Supervisory Board’s Discussions

Policy developments in Germany and Europe formed a key topic of the Supervisory Board’s
deliberations. The principle developments in to Germany were implementation of the
Building Energy Act and the Heat Planning Act as well as changes to the regulatory
environment. The reform of the EU’s electricity market design was also a regular topic of
discussion.

Furthermore, the Supervisory Board dealt in detail with the price performance of E.ON
stock, in particular regarding additional potential for value enhancement and growth
opportunities, as well as E.ON’s positioning on the capital market.

In the context of the Group’s operating business, the Supervisory Board addressed at length
how the calmer situation on wholesale commodity markets affects E.ON as well as the
business situation of the Group and its companies. It discussed E.ON SE’s and the E.ON
Group’s asset, financial, and earnings situation, dividend policy, workforce developments,
and earnings opportunities and risks. The Supervisory Board and the Management Board

Overview of the Attendance of Supervisory Board Members at Meetings of the
Supervisory Board and Its Committees in the 2023 financial year

Executive
Committee
4/4

Audit and Risk
Committee
-

Innovation
and
Sustainability
Committee
1/11

Nomination
Committee
2/2

2/22
-
4/4
-

-
-
2/23

-
-

-
4/4
-
-
-

-
2/23

2/22
-
4/41

-
-
2/22
4/41,4

-
4/4
-

-
4/4

-
-
1/23
-
-

-
4/4

2/22
4/4
-

-
4/4
-
-

2/23
3/31
1/11

1/22
3/31

1/22
-
2/21
2/22
3/4

2/22

-
-

-
-
2/23

2/2
-
-
-

-
1/11
-

2/2
-

-
-
-
-
-

-
-

-
-
-

Supervisory Board
members
Clementi, Erich
Kley, Karl-Ludwig (until
May 17, 2023)
Fröhlich, Klaus
Grillo, Ulrich
Groth, Anke
Petit, Nadège (since
May 17, 2023)
Schmitz, Andreas
Schmitz, Rolf Martin
Segundo, Karen de (until
May 17, 2023)
Wilkens, Deborah
Woste, Ewald (until May
17, 2023)
Schmitz, Christoph
Bauer, Katja
Luha, Eugen-Gheorghe
May, Stefan
Pelouch, Miroslav (until
May 17, 2023)

Supervisory
Board

5/5

2/2
4/51
5/5
5/51

3/3
5/5
5/5

1/2
5/5

2/2
4/5
5/5
5/5
5/51

2/2

5/5
5/5

Pinczésné Márton,
Szilvia
Pöhls, René
Schulz, Fred (until May
17, 2023)
Wallbaum, Elisabeth
Winterweber, Axel
1Participation(s) as a guest.
2Committee member until May 17, 2023.
3Committee member since May 17, 2023.
4Committee member since June 5, 2023.

2/2
5/51
5/5

E.ON Integrated Annual Report 2023

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thoroughly discussed the E.ON Group’s medium-term plan for 2024 to 2026. The
Supervisory Board was provided with information on a regular basis about the Company’s
cybersecurity, health, (occupational) safety, and environmental performance (in particular,
key accident indicators) as well as current customer numbers, customer satisfaction, and
the number of apprentices.

Finally, the Supervisory Board resolved to extend Dr. Victoria Ossadnik’s appointment as a
Management Board member. Furthermore, it decided in mutual agreement with Patrick
Lammers not to extend his appointment.

Corporate Governance

In the declaration of compliance issued at the end of the year, the Supervisory Board and
the Management Board declared that E.ON was in full compliance with the
recommendations of the “Government Commission German Corporate Governance Code‚”
dated April 28, 2022, published by the Federal Ministry of Justice in the official section of
the Federal Gazette (Bundesanzeiger) on June 27, 2022, since the last declaration in
December 2022.

The Supervisory Board and the Management Board also declared that E.ON has been in full
compliance with the recommendations of the “Government Commission German Corporate
Governance Code‚” dated April 28, 2022, published by the Federal Ministry of Justice and
Consumer Protection in the official section of the Federal Gazette (Bundesanzeiger) on June
27, 2022. The current version of the declaration of compliance as well as earlier versions
are published on the Internet at www.eon.com.

In early 2023 the Supervisory Board Chairman held discussions with investors on topics
specific to the Supervisory Board at a corporate governance road show.

In accordance with E.ON SE’s Articles of Association, the Management Board is authorized
to provide that Annual Shareholders Meetings held on or before June 30, 2025, may be
held without the physical presence of shareholders or their proxies at the venue of the
Annual Shareholders Meeting. The decision on the format of the Annual Shareholders
Meeting will be made annually. Deliberations focus in particular on safeguarding
shareholder rights. Aspects such as the agenda, energy and resource consumption, and
process security are taken into account as well. On this basis, the 2024 Annual
Shareholders Meeting will again take place in a virtual format.

In the 2023 financial year, one member of the Innovation and Sustainability Committee had
a potential conflict of interest (in relation to an agenda item regarding E.ON’s operating
business) due to another directorship. For precautionary reasons, the member did not
participate in the committee’s resolution. Otherwise, the Supervisory Board is aware of no
indications of conflicts of interest involving members of the Management Board or
Supervisory Board in the 2023 financial year.

Education and training sessions on selected issues of E.ON’s business were conducted for
Supervisory Board members in the 2022 financial year. The key policy and regulatory
developments in the regions in which E.ON operates and their implications for E.ON’s
energy networks business were explained to the Supervisory Board at an information event.
In addition, the Supervisory Board was given a practical presentation of the challenges
posed by increasingly digitalized network control technology resulting from extensive
network expansion. E.ON’s British customer solutions business was presented in detail and
the decarbonization of the energy and heat supply was explained at a meeting held in the
United Kingdom.

The targets for the Supervisory Board’s composition, including a competency profile and a
diversity concept, with regard to Recommendation C.1 of the German Corporate
Governance Code and Section 289f, Paragraph 2, Item 6 of the German Commercial Code
and the status of the implementation of the competency profile in the form of a
qualifications matrix are available in the Corporate Governance Declaration.

Committee Work

To fulfill its duties carefully and efficiently, the Supervisory Board has created committees.

The Executive Committee held four regular meetings in the 2023 financial year. All
members took part in all of the committee’s meetings. At its meetings, the committee, in
particular, addressed current developments in conjunction with the transformation of
Europe’s energy system and the associated policy and regulatory changes. Additionally, the
Executive Committee dealt with the Management Board’s compensation, including the
achievement of Management Board targets for 2023 and the setting of the targets for
2024. In addition, the Executive Committee did preparatory work for the resolutions
relating to personnel matters on the Management Board. Furthermore, the Executive
Committee thoroughly discussed the strategy review.

E.ON Integrated Annual Report 2023

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The Innovation and Sustainability Committee met three times. Three members were unable
to attend one meeting each. Apart from that, all members attended all of the committee’s
meetings. The matters addressed by the committee included the progress and specific
initiatives in the area of innovation as well as E.ON’s position in sustainability rankings and
the external perception of E.ON with regard to sustainability. The further development of
various new customer solutions businesses was the topic of extensive discussions as well.

The Audit and Risk Committee met four times in 2023. One member was unable to attend
one meeting, Otherwise, all members attended all meetings. The committee conducted a
thorough review, in particular of the 2021 Financial Statements of E.ON SE (prepared in
accordance with the German Commercial Code), the E.ON Group’s 2022 Consolidated
Financial Statements (prepared in accordance with International Financial Reporting
Standards, or “IFRS”), and the 2023 intermediate financial reports of E.ON SE. The
committee discussed the recommendation for selecting an independent auditor for the
2023 financial year as well as the intermediate financial reports and assigned the tasks for
the independent auditor’s auditing services, established the audit priorities, determined the
independent auditor’s compensation and reviewed the independent auditor’s qualifications
as well as the quality of the independent audit, and verified the auditor’s qualifications and
independence in accordance with the requirements of the law and the German Corporate
Governance Code. The committee also assured itself that the independent auditor has no
conflicts of interest. In addition, the committee addressed other matters assigned to it by
law, the Company’s Articles of Association, or the Supervisory Board’s rules and
procedures, in particular Internal Audit’s activities and reports, accounting issues, risk
management, transactions with related parties, and developments in the area of
compliance. Furthermore, the committee thoroughly discussed the Combined Group
Management Report and the proposal for profit appropriation and prepared the relevant
recommendations for the Supervisory Board and reported them to the Supervisory Board.
On the basis of the quarterly risk reports, the committee noted that no risks were identified
that might jeopardize the existence of the Group or individual segments. Furthermore, the
committee addressed in detail the implications and the management of the energy crisis,
occupational safety, and the Company’s cyber, legal, and data-protection risks. In addition,
there was a regular exchange of information between the Chairman of the Audit and Risk
Committee and the independent auditor throughout the financial year.

The Nomination Committee met twice. At these meetings, it did preparatory work for the
Supervisory Board‘s election proposal to the 2023 Annual Shareholders Meeting for the
shareholder representatives on the Supervisory Board of E.ON SE. When proposing
candidates to the Supervisory Board, the Nomination Committee took into account the

requirements of the German Stock Corporation Act, the German Corporate Governance
Code, and the Supervisory Board‘s rules and procedures as well as the objectives that the
Supervisory Board resolved for its composition. The committee thus ensured that
Supervisory Board members and the board as a whole have the knowledge, skills, and
professional experience required to properly perform their duties.

Committee chairpersons reported the agenda and results of their respective committee’s
meetings to the full Supervisory Board on a regular basis. Information about the
committees’ composition and responsibilities is in the Corporate Governance Declaration.

Examination and Approval of the Financial Statements, Approval of the
Consolidated Financial Statements, Proposal for Profit Appropriation for
the Year Ended December 31, 2023

KPMG AG, Wirtschaftsprüfungsgesellschaft, Düsseldorf (“KPMG”), audited and submitted
an unqualified auditor’s and/or audit opinion on the Consolidated Financial Statements of
E.ON SE prepared in accordance with IFRS, the Combined Group Management Report, and
the Compensation Report pursuant to Section 162 of the German Stock Corporation Act
(“AktG”) for the year ended December 31, 2023.

KPMG AG Wirtschaftsprüfungsgesellschaft was elected as Group auditor by the Annual
Shareholders Meeting on May 17, 2023, and has been E.ON SE’s independent auditor
without interruption since the 2021 financial year. The auditor responsible at KPMG AG
Wirtschaftsprüfungsgesellschaft is Gereon Lurweg, who is performing this function for the
third time. The IFRS Consolidated Financial Statements exempt E.ON SE from the
requirement to publish Consolidated Financial Statements in accordance with German law.

The Supervisory Board reviewed and, at its annual results meeting on March 12, 2024,
thoroughly discussed—in the presence of the independent auditor and with knowledge of,
and reference to, the Independent Auditor’s Report and the results of the preliminary review
by the Audit and Risk Committee—E.ON SE’s Financial Statements prepared in accordance
with the German Commercial Code, Consolidated Financial Statements, and Combined
Group Management Report as well as the Management Board’s proposal for profit
appropriation. The independent auditor was available for supplementary questions and
answers. After concluding its own examination, the Supervisory Board determined that
there are no objections to the findings. It therefore acknowledged and approved the
Independent Auditor’s Report.

E.ON Integrated Annual Report 2023

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The Supervisory Board also examined the sustainability reporting consisting of the
combined Non-Financial Statement and additional sustainability information which is
integrated into the Combined Group Management Report. KPMG also audited the Non-
Financial Statement and selected additional sustainability information and issued an
unqualified opinion. The disclosures were subjected to a limited assurance engagement by
KPMG; selected disclosures were audited with reasonable assurance. Following the final
result of its examination, the Supervisory Board raised no objections to the integrated
sustainability reporting, including the Non-Financial Statement.

On March 12, 2024, the Supervisory Board approved the Financial Statements of E.ON SE
prepared by the Management Board and the Consolidated Financial Statements. The
Financial Statements are thus adopted. The Supervisory Board agrees with the Combined
Group Management Report and, in particular, with its statements concerning the
Company’s future development.

The Supervisory Board examined the Management Board’s proposal for profit
appropriation, which includes a cash dividend of €0.53 per ordinary share, also taking into
consideration the Company’s liquidity and its finance and investment plans. After examining
and weighing all arguments, the Supervisory Board agrees with the Management Board’s
proposal for profit appropriation.

Personnel Changes on the Supervisory Board

The previous Supervisory Board members’ term of service ended at the Annual
Shareholders Meeting on May 17, 2023. New elections were therefore held. At the same
time, a new Supervisory Board size of 16 members—for a limited period through the 2028
Annual Shareholders Meeting—was resolved.

With the exception of Karl-Ludwig Kley, Karen de Segundo and Ewald Woste on the
shareholder side and Fred Schulz and Miroslav Pelouch on the employee side, all previous
Supervisory Board members were reelected or reappointed. Nadège Petit was newly
elected to the Supervisory Board on the shareholder side. On the employee representatives‘
side, effective January 1, 2024, Frank Werneke succeeded Christoph Schmitz, who ended
his service on the Supervisory Board on December 31, 2023.

Erich Clementi has been the new Supervisory Board Chairman since May 17, 2023,
succeeding Karl-Ludwig Kley.

Pages 260 and 261 of the Integrated Annual Report provide an overview of all members of
the Supervisory Board.

Essen, March 12, 2024
The Supervisory Board

Best wishes,

Erich Clementi
Chairman

E.ON Integrated Annual Report 2023

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Corporate Profile

Business Model
ESG Materiality and Stakeholder Engagement
Strategy
Innovation
Management Control System

Climate Protection and Environmental Management

Climate Protection
Environmental Management
Sustainable Products and Services

Employees and Society

Occupational Health and Safety
Working Conditions and Employee Development
Customer Satisfaction
Security of Supply
Community Involvement
Data Protection, Cybersecurity, and Product Safety
Business Resilience Management

29
29
32
36
38

40
47
52

55
59
64
66
69
70
72

Governance

Compliance and Anticorruption
Energy Affordability
Diversity and Inclusion
Human Rights and Supply Chain Management
Tax

Sustainable Finance and Investment

EU Taxonomy
Sustainable Finance
ESG Ratings of E.ON
ESG Asset Management and Pension Assets

Business Report

Macroeconomic and Industry Environment
Special Events in the Reporting Period
Subsequent Events
Business Performance
Energy Networks
Customer Solutions
Earnings Situation

74
76
78
80
83

85
93
93
93

94
99
100
101
102
103
105

Financial Situation
Asset Situation
E.ON SE’s Earnings, Financial, and Asset Situation

Forecast Report

Risks and Chances Report

Disclosures Pursuant to Section 289, Paragraph 4, and
Section 315, Paragraph 4 of the German Commercial
Code on the Internal Control System for the Accounting
Process

111
115
116

118

120

128

Disclosures Pursuant to Section 289a and Section 315a
of the German Commercial Code and Explanatory Report 131

Combined Group Management Report

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

About This Report

GRI 2-2, GRI 2-3, GRI 2-4, GRI 2-5, GRI 2-6

For the 2023 reporting year, E.ON has again published an
Integrated Annual Report that combines financial and non-
financial reporting. The reason is that sustainability is the
centerpiece of E.ON’s strategy and—in every dimension—the
standard for our actions. An integrated report provides our
stakeholders with a holistic and transparent view of our financial,
environmental, and social performance.

Standards

This Integrated Annual Report applies to the E.ON Group as well as
E.ON SE. E.ON is therefore fulfilling all requirements of
International Financial Reporting Standards (“IFRS”), the German
Commercial Code (German abbreviation: “HGB”), and German
Accounting Standards (German abbreviation “DRS”). The
combined Non-Financial Statement (“NFS”) pursuant to Sections
315b and 315c in conjunction with Sections 289b to 289e of the
HGB is fully integrated into the Combined Group Management
Report. The Group Management Report thus contains information
on five aspects: the environment, employees, social matters,
human rights, as well as anti-corruption and anti-bribery. The NFS
also complies with the disclosure requirements of the EU
Taxonomy Regulation. The Non-Financial Statement (“NFS”) Index
indicates where these disclosures can be found in the Integrated
Annual Report. In addition, the Disclosures Regarding Takeovers
chapter is integrated into the Annual Report.

E.ON’s sustainability reporting, which consists of the NFS and
other sustainability disclosures, is guided by the findings of its
materiality analysis and topics relevant for stakeholders. It has
been prepared with reference to the GRI Standards 2021 by the
Global Reporting Initiative. The GRI standards covered by the
content of a chapter are displayed on the first page of the chapter.
The GRI Index provides an overview. The Other Information
chapter contains E.ON’s disclosures regarding the Electric Utilities
and Power Generators Standards issued by the Sustainability
Accounting Standards Board (“SASB”). E.ON is committed to the
ten principles of the United Nations Global Compact (“UNGC”) and
supports the United Nations Sustainable Development Goals
(“SDGs”). We describe our contributions to the SDGs in the
Strategy chapter. Our climate-related reporting, which is based on
the recommendations of the Task Force on Climate-related
Financial Disclosures (“TCFD”) as well, can be found in the chapter
Climate Protection.

Scope

This report encompasses all subsidiaries that are fully consolidated
in E.ON’s Consolidated Financial Statements 2023. Any deviations
are marked accordingly. KPI-based thresholds are used to
distinguish companies that do not contribute significantly to the
report. The next chapter, Business Model, contains more
information about the E.ON Group’s structure and business
segments.

The reporting period is the 2023 calendar year. For most KPIs the
corresponding prior-year figure is provided to improve
comparability. Adjustments to prior-year figures of a KPI are
explained in footnotes.

Statements on the future development of E.ON and its subsidiaries
are estimates based on information available at the time of
reporting. Actual results may deviate from these statements.

The Corporate Governance Declaration is published on our website
eon.com in the section Corporate Governance.

The Integrated Annual Report was published on March 13, 2024,
and is available in German and English in pdf format. You can
download the pdf version of this report at eon.com. The previous
Integrated Annual Report was published in March 2023. You can
find it and additional reports in the investor relations archive.

Language

To improve readability, we generally use the shorter name for
companies and organizations (such as “E.ON” rather than “E.ON
SE”).

Sustainability Ratings

E.ON’s commitment to transparency includes subjecting its
sustainability performance to independent, detailed assessments
by specialized agencies and capital-market analysts. The findings
of these assessments provide important guidance to investors and
to E.ON. They help us identify our strengths and weaknesses and
further improve our performance. The Sustainable Finance chapter
presents the results of sustainability ratings.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Assurance

The Combined Group Management Report is generally audited as
part of the statutory audit of the financial statements. Content
that is not part of the statutory audit of the Consolidated Financial
Statements and is therefore excluded from the auditor’s report is
identified separately, as described below. For the NFS and selected
additional sustainability information, a separate assurance
engagement (“Sustainability Assurance”) was also performed by
KPMG AG in accordance with the International Standard on
Assurance Engagements (“ISAE”) 3000 (Revised) issued by the
International Auditing and Assurance Standards Board (“IAASB”).
The audit assurance applied to the different contents is clarified in
the report by means of various symbols.

Symbols next to headings [H2] apply until the next heading of
the same level of hierarchy. Sections within the same chapter that
were audited with a different assurance may be marked
separately. This is done in longer sections by means of symbols
next to the subheadings [H3] which apply until the next
heading of the same level of hierarchy. In addition, individual
sections or KPIs that are subject to a different audit assurance may
be marked separately.

The corresponding contents are marked as follows:

 Not part of the statutory audit, audited with reasonable
assurance as part of the Sustainability Assurance in
accordance with ISAE 3000.

 Not part of the statutory audit, audited with limited assurance
as part of the Sustainability Assurance in accordance with
ISAE 3000; individual text passages are indicated by ►◄.

 Not part of the statutory audit, unaudited; individual text

passages are indicated by › ‹.

Prior-year figures and quantified changes from the prior year
included in sections marked as audited are, in principle, audited
with the same degree of assurance as for the 2023 reporting year.
Figures for 2021 were audited with limited assurance. Any
deviations are indicated.

The precise scope of the audit is described in the Other Information
section in the Independent Auditor’s Report and in the report on
the management review of sustainability information.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Corporate Profile

Business Model

E.ON is an investor-owned energy company with approximately
74,600 employees led by Corporate Functions in Essen. The
Group’s core business is divided into two segments: Energy
Networks and Customer Solutions. Corporate functions, equity
interests managed directly by E.ON SE, and non-strategic
operations are reported under Corporate Functions/Other.

Corporate Functions
Corporate Functions’ main task is to lead the E.ON Group. This
involves charting E.ON’s strategic course and managing and
funding its existing business portfolio. Corporate Functions’ tasks
include optimizing E.ON’s overall business across countries and
markets from a financial, strategic, and risk perspective,
conducting stakeholder management, and managing E.ON Energy
Markets GmbH (“E.ON Energy Markets”), the Company’s central
commodity procurement unit. The E.ON Group’s non-strategic
activities, such as the operation of nuclear power stations until
April 15, 2023, and their dismantling (managed by the
PreussenElektra unit) and the generation business in Turkey are
reported here as well.

Energy Networks
This segment consists of E.ON’s power and gas distribution
networks and related activities. It is subdivided into three regional
markets: Germany, Sweden, and East-Central Europe/Turkey
(which consists of the Czech Republic, Hungary, Romania, Poland,
Croatia, Slovakia, and the stake in Enerjisa Enerji in Turkey, which
is accounted for using the equity method). This segment’s main
tasks include operating its power and gas networks safely and
reliably, carrying out all necessary maintenance and repairs, and
expanding its power and gas networks, which frequently involves
adding customer connections and the connection of renewable
energy generation assets.

Customer Solutions
This segment serves as the platform for working with E.ON’s
customers to actively shape Europe’s energy transition. This
includes supplying customers in Europe (excluding Turkey) with
power, gas, and heat, and providing them with solutions that
enhance their energy efficiency, energy autonomy, and eMobility.
E.ON’s activities are tailored to the individual needs of customers
across all categories: residential, small and medium-sized
enterprises, large commercial and industrial, sales partners, and
public entities. The E.ON Group’s main presence in this business is
in Germany, the United Kingdom, the Netherlands, Nordics (for
example, Sweden, Denmark, and Norway), Italy, the Czech
Republic, Hungary, Croatia, Romania, Poland, and Slovakia. In
addition, Energy Infrastructure Solutions engages in activities
aimed at decarbonizing commercial customers, cities, and
communities, such as sustainable city solutions and district
heating.

Significant Changes to the Business Model Effective
January 1, 2024
Some of the Energy Network segment's regional markets were
reclassified effective January 1, 2024. East-Central
Europe/Turkey is now divided into East-Central Europe (which
includes the Czech Republic, Slovakia, and Poland) and
Southeastern Europe (which includes Hungary, Croatia, Romania,
and our stake in Enerjisa Enerji in Turkey, which is accounted for
using the equity method).

In addition, the Customer Solutions segment was renamed Energy
Retail. Furthermore, the Energy Infrastructure Solutions ("EIS")
was transferred from Energy Retail and has been an independent
segment since January 1, 2024. We thus now report on its
activities separately.

Furthermore, the E.ON Group's central commodity procurement
unit, E.ON Energy Markets, is reported at Energy Retail effective
January 1, 2024. It was part of Corporate Functions/Other until
December 31, 2023.

ESG Materiality and Stakeholder Engagement 

ESG Materiality

GRI 3-1, GRI 3-2

E.ON has conducted an annual materiality analysis since 2006.
The purpose is to identify and evaluate the sustainability topics
that are most important to the Company and its stakeholders. This
report contains information on the topics that the materiality
analysis deemed to be particularly significant. It also partially
addresses less material sustainability topics. E.ON thus aims to
meet the different expectations of stakeholders as well as the
requirements of environmental, social, and governance (“ESG”)
rankings and ratings. We provide an overview of the material and
other topics in the Non-Financial Statement (“NFS”) Index.

Identification of Material Topics
In 2023 E.ON conducted a materiality analysis in accordance with
the requirements of the Non-Financial Reporting Directive
(“NFRD”). The requirements of the Corporate Sustainability
Reporting Directive (“CSRD”) were taken into account, but not
applied. We applied the double materiality principle: we considered
the financial perspective as well as the impact perspective. The
process had four steps, which are described below:

Step One: Topic Identification and Collection
E.ON first gathered information and evidence on potentially
material topics. We consulted a variety of sources, including
regulations, reporting standards as well as statements from
customers, competitors, investors, and non-governmental
organizations (“NGOs”). We used this to create an overview of
possible material topics. These were then compared with our
existing material topics and collated. The basis for this was an
evaluation that correlates a topic’s frequency of mention to its
importance for the industry. Experts from Sustainability, Group
Accounting, and Investor Relations divisions reviewed and finally
agreed on a short list of E.ON’s potentially material topics.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Step Two: Impact Perspective
E.ON analyzed the impact perspective by surveying NGOs,
research institutes, suppliers, customers, and other stakeholders.
We gave them a questionnaire containing the topics identified in
step one and asked them to rate them. The questionnaire’s
findings were then examined in greater depth in stakeholder
interviews. Representatives from the Sustainability, Group
Accounting, Investor Relations, and Group Risk functions
evaluated the survey’s findings in a workshop, which concluded
the impact analysis.

integrated the approval of the update of our sustainability analysis
pursuant to NFRD requirements from 2022 and assessed the prior
year’s findings to ensure they are up to date. Our CEO Leonard
Birnbaum and our CFO Marc Spieker performed the final
validation.

The findings of our NFRD materiality analysis for 2023, which are
listed below, reaffirm the findings of the analysis from the prior
year. The highest relevance from a financial and impact
perspective was assigned to the following three topics:

Step Three: Financial Perspective
E.ON evaluated the financial perspective by examining the risks
and opportunities associated with the ESG topics contained in its
Enterprise Risk Management (“ERM”) system. Another workshop,
consisting of the same participants, was then held to assess and
validate the financial materiality of the topics identified.

• Climate-change mitigation

• Energy affordability

• Reliable energy supply

Step Four: Materiality Threshold
E.ON finalized the list of topics by defining a common materiality
threshold for the impact and financial perspectives. Only topics
that exceeded it were considered material. To determine them, we
held a third workshop consisting of the above-mentioned
participants. The findings were then presented to the
Sustainability Council, which approved E.ON’s materiality analysis
for 2023. The council is chaired by the Chief Sustainability Officer.
He reports periodically to the E.ON Management Board on
progress made.

Material Topics
E.ON’s sustainability reporting for the 2023 reporting year must
for the last time reflect NFRD requirements. We therefore did not
conduct a comprehensive update of our sustainability analysis
pursuant to NFRD requirements. Instead, we conducted a Group-
wide materiality analysis oriented toward the European
Sustainability Reporting Standards 2 (“ESRS 2”) in order to prepare
for our first reporting pursuant to the Corporate Sustainability
Reporting Directive (“CSRD”) for the 2024 reporting year. We

The material topic of climate-change mitigation also encompasses
customer solutions that mitigate climate change. Since both
aspects—general climate-change mitigation and customer
solutions that mitigate climate change—are extensive, they are
presented in separate chapters in the Integrated Annual Report
2023.

The ESG chapters of this report provide information on E.ON’s
approach to managing its material topics and outline the
Company’s progress in the reporting year. The description of the
management approach is based on GRI 3-3, Management of
material topics.

Stakeholder Engagement

GRI 2-28, GRI 2-29

E.ON continually seeks dialogue with its various stakeholders. We
want to listen to and understand their points of view and also to
talk to them openly about the potential short- and long-term
impacts of our business activities. This is an important objective of

our daily work at the local, national, and European level. A
stakeholder is any person who or any group that has an interest in
a company. Stakeholder engagement is thus a core process of
E.ON’s corporate governance. The dialogue formats we choose
vary by stakeholder and topic. They range from information
campaigns and discussion forums with associations and NGOs to
face-to-face discussions and lobbying. For example, E.ON is
actively involved in the global investor initiative CDP (Carbon
Disclosure Project), works with the United Nations Environment
Programme (“UNEP”), and supports the UN Decade on Ecosystem
Restoration. Furthermore, since 2021 E.ON has been part of the
LEAF Coalition (Lowering Emissions by Accelerating Forest
Finance), which is committed to biodiversity and the protection of
tropical forests. More information on CDP and the LEAF Coalition
can be found in the “Climate Protection” chapter. E.ON is also a
member of SolarPower Europe, a European association of energy
suppliers and solar companies. The Solar Stewardship Initiative
(“SSI”) was set up as part of this association. Its aim is to create
more transparency for solar-power supply chains and to ensure
compliance with human rights.

E.ON actively participates in policy debates on issues that affect
the Company. We use a variety of channels for this, including
lobbying, media interviews with our executives, and their
appearances as public speakers. In addition, policymakers and
regulators frequently invite E.ON to provide its technical and
energy expertise as part of their decision-making processes. The
Company offers its expertise proactively as well. This type of
advocacy is important because the energy sector is significantly
influenced by policy and regulatory decisions. Energy policy
discussions in Brussels and Berlin focused on a future market
design for the electricity market and the necessary expansion of
infrastructure. Furthermore, E.ON takes part in discussions on
energy, environmental, and climate policy in a variety of other
forums. For example, Leonhard Birnbaum is part of the European
CEO Alliance, an alliance of EU-wide business leaders who discuss
ways to provide additional support to the EU Green Deal. Effective
November 21, 2022, Leonhard Birnbaum was appointed acting

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

president of Eurelectric, the association of the European electricity
industry; he was elected president in March 2023 and has
officially been in office since June 2023. Eurelectric is an umbrella
organization representing more than 3,500 European companies
active in electricity generation, distribution, and supply. Direct
members of Eurelectric are the national associations, including the
German Association of the Energy and Water Industries (German
abbreviation: “BDEW”), Swedenergy, and Energy UK.

› The Climate Advocacy and Associations Report provides an
overview of E.ON’s lobbying approach as well as the associations
and initiatives which the Company is part of and the key positions
it holds in conjunction with its efforts to propel the energy
transition. All of E.ON’s lobbying activities and dialogue formats
comply with national and European laws and guidelines on
representing corporate interests and responsible lobbying. ‹

Below is an overview of E.ON’s most important stakeholders, their
significance for E.ON, and their expectations of E.ON.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

E.ON is a member of numerous industry networks and trade
associations in individual countries and at the European level. They
enable companies to share information about climate protection,
customer needs, and industry trends, and to represent shared
interests to policymakers and regulators. Examples of these
memberships include:

• German Association of Energy and Water Industries (German

abbreviation: “BDEW”): through the BDEW E.ON is also
represented in two European trade associations, Eurelectric and
Eurogas.

• Federation of Germany Industries (German abbreviation: “BDI”):

E.ON is engaged in the BDI through its membership in the
Association of the German Interconnected Grid Systems
Economy (German abbreviation: “VdV”). E.ON also supports the
BDI through the Association for the Promotion of Germany
Industry. BDI is a member of BusinessEurope, a European
umbrella organization.

• German Industry Initiative for Energy Efficiency (Deutsche

Unternehmensinitiative Energieeffizienz, or “DENEFF”): a multi-
industry network of companies and organizations dedicated to
enhancing energy efficiency.

• Bitkom: through this industry initiative for a digital economy the

Company is also represented in the Federal Association of
German Industry (Bundesverband der Deutschen Industrie) and
its European umbrella organization, BusinessEurope.

• E.ON executives take part in the Economic Council of the CDU

e.V. and the Economic Forum of the SPD e.V.

• European Distribution System Operators for Smart Grids
(“EDSO for Smart Grids”): European association promoting
smart grids and the digitalization of the energy sector.

• Energy UK: a trade association for energy in the United

Kingdom.

Europe therefore remains right on course. We are the playmaker of
Europe’s energy transition and made significant progress in 2023.

• Swedenergy: a private association of companies involved in

electricity production, sale, and trading in Sweden.

Stakeholder Dialogue on Safe Post-Operations and Plant
Dismantling
E.ON subsidiary PreussenElektra is responsible for the safe post-
operation and dismantling of its nuclear power plants (“NPPs”).
Ongoing dialogue with stakeholders is essential. PreussenElektra
communicates with a broad spectrum of stakeholders through
press releases and briefings. The Company also uses events and
forums to speak directly with its stakeholders and benefit from
their feedback. The aim of all these measures is to provide
transparent information and build trust.

Dialogue remains important during NPPs’ dismantling as well. In
2023 PreussenElektra held press events at nearly all its NPPs.
Annual power plant talks with key local stakeholders took place in
the fall as well. Some plants also have dialogue groups for nearby
residents, in which PreussenElektra also participated in 2023.
People who live near Brokdorf, Isar, and Grafenrheinfeld NPPs and
other stakeholders were given the opportunity to visit the plants
on selected dates.

Strategy

2023: Markets Calm Down, E.ON’s Strategy Remains Right
on Course
Overall, the situation on energy markets in 2023 improved
compared with the severe turbulence of 2022. At E.ON, we
perceive this in all our regions. The tensions are still noticeable,
however, and our prudent planning reflects this. E.ON mastered
last year’s challenges by consistently implementing our strategy
focusing on sustainability, digitalization, and growth—because this
strategy has proven to be robust even in times of crisis. Our
strategy to be and remain the green energy transition company in

The energy crisis in 2022 accelerated the energy transition by
putting the need for sustainable energy systems into even sharper
focus. The energy transition is therefore not only an urgently
necessary response to climate change, but also an opportunity for
Europe and Germany to simultaneously remain competitive and
resilient and thus pursue a sustainable path out of the energy
crisis. The policy decisions of Germany’s Easter package of
renewables legislation show that the emphasis on energy security
and energy autonomy—along with the resilient and digital energy
infrastructure it requires—has become even more important. E.ON
is one of Europe‘s largest operators of electricity and gas
networks, and the growth strategy we launched in 2021 therefore
puts us right on track to continue propelling and ensuring supply
security and multisector decarbonization. The crisis has also made
us realize that we must always think about sustainability, supply
security, and energy affordability together and that the maxim of
E.ON‘s actions must be to achieve a balance between these three
requirements.

Germany is part of Europe‘s energy market. The shutdown of
Germany‘s last nuclear power plants in April 2023 and its plan to
phase out coal by 2030 make this fact increasingly important.
Ensuring supply security and energy affordability can only be
achieved by expanding renewables faster. Renewables expansion,
in turn, promotes sustainability, but can only succeed if it is
accompanied by significantly more and faster network expansion.

We are also at a turning point. The energy transition is now
primarily a heating transition, which already directly affects every
individual or will do so in the future. For example, 2023 was
already characterized by a strong desire among customers for
more autonomy and sustainability. One of the upshots of this was
high demand for heat pumps. The heating transition was thus
already readily apparent in 2023. Making the energy transition a

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

reality is one of the challenges of the decade ahead, not just for
E.ON, but for Europe as a whole.

We are underlining the importance of this turning point by making,
from 2024 onward, our decentralized infrastructure solutions
business, Energy Infrastructure Solutions (“EIS”), a strategic
business unit alongside our two existing segments, Energy
Networks and Customer Solutions/Energy Retail.

› Without the requisite expansion and digitalization of networks,
the energy transition will fail. It is technically feasible, but the
question is at what price. Investments in networks can only be
made in a reliable and economically attractive regulatory
environment. Less bureaucracy and more innovation are
necessary, too. ‹

At Energy Networks, 2023 was primarily characterized by organic
growth and the consistent implementation of our strategy.
Ongoing renewables expansion led to a further increase in demand
to connect these facilities to networks and to expand network
capacity. Investments in the 2023 financial year went mainly
toward network expansion and infrastructure modernization and
digitalization. A significant proportion of Europe’s renewables
capacity is connected to the E.ON Group’s grids; indeed, the one
millionth renewables facility was connected to E.ON’s network in
Germany in October 2023. These networks are not only the
backbone of the green energy transition—which E.ON’s
considerable investments continue to propel—but also one of the
most critical pieces of social infrastructure. It is clear that the
energy transition will not be possible without the underlying
network infrastructure.

The successful implementation of our growth strategy which
emphasizes our promise to provide secure and affordable energy
was also reflected at Customer Solutions in 2023. Our dynamic
management of prices, customer churn, and our portfolio made a
significant contribution to stabilization after the crisis. Our focus
was always on supply security, affordability, and a sustainable

energy supply. Wherever it was economically feasible, E.ON
always passed lower market prices through to households and
reduced end-customer prices after the significant increases that
resulted from the crisis in 2022.

Overall, this too demonstrates that the strategic course we set—
measured by the high demand for intelligent solutions and
products for decarbonizing households and industry—remains
stable and will become increasingly important in the future.

► E.ON’s wide range of products and services enables our
customers and partners to displace over 100 million metric tons of
CO2 annually. ◄

The primary feature of 2023 at our Energy Infrastructure
Solutions (“EIS”) business was the obtaining of new contracts that
will enable us to offer our customers additional decarbonization
solutions in the future.

› At our partner Imerys in Belgium, for example, we installed a
generating unit that runs entirely on industrial synthesis gases that
result from Imerys’s production processes. The unit can supply not
only Imerys’s production facility but also 40,000 households in the
region with electricity year-round. In Poland we signed a contract
to develop a project to generate energy from waste heat. These
two projects alone will result in annual carbon savings of 81,000
metric tons per year. These kinds of assets are still lighthouse
projects, but we want to make them the standard. Among other
things, they make a significant contribution to the competitiveness
and decarbonization of Europe’s economy. We therefore made
tangible year-on-year progress, not only in further developing this
business and growing E.ON, but also in delivering on E.ON’s
ambitions to make Europe’s energy system more sustainable. ‹

Demand for our sustainable energy solutions is likewise continuing
to rise. Not only did our Future Energy Home business record
growth by offering decarbonization solutions for households,
primarily in newly tapped markets. Our eMobility business

continued to expand by means of a Europe-wide strategic
partnership with BMW for home charging as well as our
acquisition of startup elvah. Elvah’s app is designed to make it
easier to find available, reliable, and affordable charging stations
and also helps us better utilize our charging network.

Alongside our existing partnerships with Berlin and Malmö, in
2023 we forged our first strategic energy partnership in England
with the city of Coventry—the headquarters of E.ON UK plc—to
jointly develop and propel decarbonization as well as social
projects.

The pace of our digitalization, which is a key success driver, is swift
as well. We are digitalizing across E.ON. We defined technological
standards for the entire E.ON Group in order to harmonize our IT
landscape. Our common technology platform is designed to ensure
our IT landscape’s efficiency and reliability while maintaining a
high degree of flexibility by means of a modular setup centered on
an application-programming interface (“API”). This includes a
continued focus on a clear cloud strategy. Using the cloud enables
us to achieve greater stability and shorter recovery times, while at
the same time enhancing the flexibility of our workloads’
performance. E.ON has migrated more than 95 percent of
applications from its data centers to the cloud, and we are already
seeing that the cloud makes our data landscape more stable and
secure. It forms the basis for the modernization of our business
processes and simplifies and accelerates the development of new
digital services for the energy transition. The digitalization of our
Group provides us with greater efficiency, higher security, and
more flexibility for swifter scaling. In a dynamic market
environment like ours, digitalization can give us a significant
competitive advantage. In addition, we are committed to providing
our entire workforce with adequate training and development. We
rolled out a new digital learning platform that provides all our
employees with the skills they need to propel the digitalization of
our business processes and products according to their individual
requirements. These efforts are supported by a growing core of
digital experts who promote digitalization projects in all our

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

business areas and by equipping all employees with the modern
technical tools they need for their daily work.

In 2023 E.ON also reassigned its central innovation activities to its
digital division. The new organizational setup reflects E.ON’s
conviction that digital innovations in particular—like Elna, a smart
meter service we launched in Sweden, and Evercharge, a solution
for preventing charging point outages—are key value drivers in the
energy transition.

These are all important steps on the path to a sustainable
transformation of the energy system. It is a long-term task and
requires political support and appropriate framework conditions. It
is becoming increasingly clear that the energy transition has
reached one of its larger challenges: the heating transition. This
will require considerable investments in networks and a
fundamental reconfiguration of the entire infrastructure. Being an
active partner to around 6,000 municipalities in Germany positions
E.ON well to successfully support and implement municipal heat
planning and Germany’s Building Energy Act.

E.ON laid the foundation stone for the energy transition in the
heating sector by creating a digital heat map for municipalities and
citizens, which we officially presented to the Federal Minister for
Housing, Urban Development, and Construction in November
2023.

The use of hydrogen as a substitute for coal, gas, and oil in
industry will continue to play an important role in the
transformation of the energy system. Extensive investment in
energy infrastructure is necessary here, too. All of this offers us
new opportunities and again reaffirms E.ON’s strategic course.

“Making new energy work”
We are the playmaker of change in the energy industry. Leading
the way for innovative, sustainable, digital-first solutions that
transforming the way Europe is powered for all.

This clear purpose send an unmistakeable message. It indicates—
as our mission statement already implies—that we will continue to
emphatically implement our established strategy whose three key
elements are sustainability, digitalization, and growth.

Sustainability
E.ON’s strategy fits seamlessly with the European Union’s
decarbonization agenda. Europe’s distribution networks—E.ON’s
biggest business—are where the energy transition is happening.
The investments necessary to upgrade, expand, and digitalize
these networks through 2030 are estimated at over €425 billion.
The European Commission’s desire to accelerate this expansion
will be an additional driver.

Climate protection will be one of the key drivers of E.ON’s future
growth. The Science Based Targets initiative (“SBTi”) validated
E.ON’s climate targets in May 2022. They are consistent with
keeping global warming to 1.5°C above preindustrial levels. In
addition, E.ON pledges for its Scope 1 and 2 emissions to achieve
climate neutrality by 2040 (and to cut Scope 1 and 2 emissions by
roughly 75 percent by 2030). E.ON intends for its Scope 3
emissions to be climate-neutral by 2050 (and to reduce them by
about 50 percent by 2030). All reductions are relative to 2019.
These objectives set a course that is both ambitious and viable: a
reduction path consistently aligned with the new energy world and
E.ON‘s strategy. In addition, E.ON voluntarily offsets a portion of
the emissions it is currently unable to avoid. Offsets help fund
measures that prevent or remove carbon emissions outside our
value chain. All offsets are currently not factored into E.ON’s
climate targets, but rather are made at the product level. E.ON’s
most important offsetting program is the partnership it has had
since 2021 with the LEAF Coalition, which stands for Lowering
Emissions by Accelerating Forest Finance. LEAF offsets help
protect tropical forests and manage them sustainably. E.ON’s
LEAF program will initially run through year-end 2027.

ESG aspects are systematically embedded into E.ON’s central
control and management processes. In addition, each business

unit’s management team is responsible for taking action to
enhance sustainability and to meet the unit’s sustainability targets.
This decentralized approach enables the units to contribute to
E.ON’s Group-wide targets for issues like climate protection and
corporate governance, while also tailoring their actions to their
specific needs. Each unit has sustainability staff who reinforce
awareness, coordinate projects and initiatives, and monitor
progress toward targets. They share information at regular
intervals with our Sustainability Council and the E.ON Group’s
Sustainability team.

Digitalization
Digitalization will be a cornerstone of the energy landscape of the
future. The transition toward an interconnected, volatile, and
networked energy world is being accompanied by increasing
complexity that can only be managed through comprehensive
digitalization. Digitalization is thus an important lever in E.ON’s
growth strategy and the basis for generating additional value in its
core business over the long term. E.ON’s objective is to become
one of the leading digital energy companies and to fundamentally
transform its products, processes, and services into data-driven
and highly interconnected solutions. Our digital transformation is
proceeding along four strategic pathways: optimizing internal
operations, engaging customers and partners, transforming and
developing new business areas, and enhancing employees’ digital
skills. The centerpiece of our digital transformation is a common
technology platform (“CTP“) for the entire Group. The CTP will
serve as the basis for standardizing and harmonizing all
applications in the E.ON Group necessary for the energy transition
now and in the future. It will enable us to develop new digital
energy solutions while maintaining the highest security standards.

The foundation of E.ON One has enabled the E.ON Group to pursue
the objective of offering and operating innovative digital energy
solutions for the external market and for E.ON Group companies.
E.ON One’s portfolio is formed by targeted investments in E.ON’s
own innovations and in startups. This will make it possible to
smartify networks and render energy consumption more

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

sustainably. E.ON One focuses on three business areas: grid
management, grid operations, and energy management solutions.
These areas form the basis of a successful energy transition. E.ON
One offers a wide range of energy management solutions that give
customers more transparency about their consumption and that
aims to optimize consumption and generation.

Energy Networks’ top priorities include standardization,
smartification, and the development of new digital solutions‚ all
with the highest cybersecurity standards. Digitalization helps E.ON
operate its networks even more efficiently and optimally manage
the growing proportion of power from renewable generating
facilities. The development of digital solutions like smart eMobility
charging solutions as well as new services in front of and behind
standard residential meters and smart meters are also part of
E.ON’s growth strategy.

Growth
E.ON’s core business consists of two segments: Energy Networks
and Customer Solutions. E.ON operates power and gas networks
in various regions of Europe and offers a broad range of customer
solutions. The two businesses complement each other amid the
transformation of global energy systems. They are also clear
growth businesses that benefit from the sustainable
transformation of various customers and industrial sectors. As a
result, E.ON’s business opportunities are expanding as well. Our
growth strategy also fits seamlessly with Europe’s decarbonization
ambitions: because of the ongoing build-out of renewables and the
resulting greater challenges for power networks, systemic change
in power distribution networks will, as already mentioned, require
investments of more than €425 billion. According to the most
recent statements by the German Federal Network Agency, about
€150 billion of investments will be required for distribution
networks in Germany alone. E.ON’s distribution networks alone
will connect several million new renewables facilities over this
time period. In addition, the growth in the aggregate energy
demand of E.ON’s customer groups is estimated to increase by
more than 100 percent between 2020 and 2050. A sustainable

transformation of the economy is necessary for this as well. E.ON
is aiming for earnings growth in both the Energy Networks and
Customer Solutions segments, supported by continual efficiency
improvements. The focus is primarily on achieving operational
excellence. We are likewise aware that our growth strategy will
only be successful if it is accompanied by changes within our
organization, such as cultural change, diversity, and education.

Growth in the Energy Networks Segment
The transition to a new, sustainable, and interconnected energy
world will require considerable investments in physical and digital
assets. As stated above, this applies above all to the Energy
Networks segment, whose Networks are the platform for a
successful energy transition. Ongoing renewables expansion in
particular will require grids to grow at a similar pace. New network
connections and connected load will increase sharply amid the
energy transition owing to changes in customer behaviour. The
energy transition alone therefore represents an unprecedented
growth opportunity for E.ON, an opportunity that is being further
accelerated by the current developments in Europe’s energy
system. Consequently, this growth will be accompanied by a
suitable and sensible digitalization of networks because they are a
key component of E.ON’s growth strategy and a prerequisite for
the implementation of the energy and climate transition in
distribution networks. The use of smart-grid technology (such as
smart energy meters and smart transformer stations), the
integration of external data, and the standardization of
construction and operating processes will make it possible to
realize considerable potential. Where necessary for technical
reasons and economically feasible, E.ON will acquire the capability
to monitor and control its distribution networks across all voltage
levels in order to optimize their operation. Sensors and smart
metering and control technology will enable real-time control of
distributed generation and consumption.

The energy and heat transitions will alter the role of gas networks
as well. E.ON is already working on plans, such as making gas
network infrastructure hydrogen-ready. E.ON will therefore,

where legally possible and economically sensible, make its existing
gas networks hydrogen-ready. These investments will help pave
the way toward climate-neutral gas networks.

This is among the reasons why E.ON is one of Europe’s leading
distribution system operators. E.ON has a regulated asset base
(“RAB”) of €42 billion, and its regulated business generates a large
share of its EBITDA. E.ON’s strategic objective is therefore to
remain Europe’s leading energy and infrastructure partner. A large
portion of investments during the 2024–2028 planning period will
again go toward network expansion and a variety of network
projects. The Forecast Report contains details about planned
investments.

Growth in the Customer Solutions Segment
The Customer Solutions segment focuses on the offering of energy
solutions (such as Future Energy Home or “FEH,” eMobility, and
green gas) and the decentral activities of the Energy Infrastructure
Solutions (“EIS“) business, as well as power and gas sales. This is a
scalable business model with comparatively low capital
requirements and focuses on private households and small and
medium-sized enterprises. E.ON’s objective for this business is to
retain its roughly 47 million customers (including customers in
Turkey and at ZSE in Slovakia) in the long term by offering them
sustainable energy solutions and services and thus reducing their
environmental footprint and reaching energy conservation targets,
particularly regarding residential customers’ gas consumption. So
that this objective can be achieved at competitive costs, E.ON
systematically pursues digitalization‚ which promotes optimal
operational efficiency, superior customer satisfaction and loyalty
(customer relationship management), and cross-selling
opportunities. In addition, E.ON focuses primarily on offering
distributed energy systems for households, such as the self-
generation of green solar power, energy storage, heat, and
eMobility solutions. The European Commission’s solar strategy for
the EU, which includes the target of doubling Europe’s solar power
capacity by 2025, remains an additional growth driver.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

The expansion of suitable eMobility infrastructure is another key
strategic pillar. The eMobility market continues to undergo change
and is characterized by strong growth: policymakers want at least
15 million electric vehicles to be registered in Germany by 2030.
The time for rapid growth activities is now, because all attractive
locations for the charging infrastructure necessary for this
objective will presumably have been allocated in the years ahead.
Our objective is to enlarge our current market position and become
one of Europe’s leading operators of charging infrastructure by
2030.

► In 2023 E.ON sold 23,923 charging points for residential and
business customers in many European countries. ◄

EIS’s activities encompass innovative energy solutions that aim to
help cities, municipalities, and industrial customers achieve their
climate targets cost-effectively. E.ON aims for its EIS business unit
to achieve additional growth and become the preferred
transformation partner for sustainable, innovative energy
solutions. EIS’s core business consists of a portfolio of solutions for
decentral power, heat, and cooling plants as well as solutions for
energy efficiency and decarbonization along with other energy
services. E.ON sees green hydrogen in particular as a key strategic
growth opportunity over the medium term, and founded E.ON
Hydrogen GmbH to meet rising demand for green gases in the
future. Hydrogen will play an essential role in the climate-neutral
energy system of the future. E.ON plans to develop a national and
international hydrogen business. Our international footprint in
Europe gives us optimal local conditions for future hydrogen
clusters, for example in the North Sea region. Selected
partnerships for developing this business include, for example,
French energy company EDF, Everwind Fuels, Tesla, and
Fortescue Future Industries.

E.ON is thus well positioned to propel the energy transition and
satisfy the increasing demand for sustainable solutions. All
business units benefit from robust growth in the demand for green

power and gas across all sectors (households, transportation,
buildings, and industry).

Innovation

Commitment to the UN Sustainable Development Goals
› The United Nations Sustainable Development Goals (“SDGs”) of
its 2030 Agenda for Sustainable Development provide a blueprint
for a better and more sustainable future. Adopted in 2015, the 17
SDGs and 169 subgoals address a wide range of global challenges.
We recognize the SDGs’ importance. Our Management Board
underscored this support by issuing a self-commitment to the
SDGs in June 2018. E.ON’s core business activities enable it to
play a considerable role in fostering the SDGs 7 (Affordable and
Clean Energy), 11 (Sustainable Cities and Communities), and 13
(Climate Action). All of E.ON’s other contributions to the UN SDGs
can be found in the SDG Index. ‹

Finance Strategy
The section of the Combined Group Management Report entitled
Financial Situation as well as the E.ON on Capital Markets chapter
contain explanatory information about E.ON’s finance strategy.

People Strategy
The sections of the Combined Group Management Report entitled
Working Conditions and Diversity and Inclusion contain
explanatory information about the main components of E.ON’s
people strategy as well as statements about diversity at E.ON.

Innovations: Pioneering New Solutions En Route to Climate
Neutrality
At E.ON, we focus on innovations to develop new solutions en
route to climate neutrality. They help us quickly and reliably design
safe, user-friendly digital products, processes, and systems for our
Energy Networks and Customer Solutions segments as well as the
E.ON organization.

Our Innovation division focuses on developing new customer
solutions and deploying new technologies while assessing the
opportunities and possibilities as well as the risks associated with
the use of modern technology. The public and scientific-
technological debate about artificial intelligence (“AI”) and
generative AI or Gen AI has led E.ON, too, to take a close look at
their opportunities and risks. For example, E.ON is testing various
Gen AI solutions for integrated knowledge and information flows,
information on strategic trends, improved operational planning,
the design and implementation of business processes, and for the
creation of value for customers and employees.

Collaboration in Global Networks and Partnerships
Accelerates Innovations
E.ON has worked in recent years to establish Group-wide
structures and processes for in-house collaboration and
partnerships to develop innovations. E.ON is convinced that new
business models that are significant for its future business can be
developed better, more easily, and faster in collaboration with
universities and other scientific institutions as well as various
partners and networks of a global innovation ecosystem. In 2023
this integrated partnership approach enabled E.ON to extend its
position in the implementation of energy transition projects as well
as in innovation.

E.ON manages two key business initiatives, known as innovation
engines, to deploy innovations generated by outside start-ups, by

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

Back

→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

universities, and in-house as quickly as possible in its operating
business:

such as Ectocontrol, whose purpose is to deliver optimal, holistic,
and data-based control of Ectogrid, E.ON’s fifth-generation low-
temperature grid.

supplies E.ON with an AI-based technology that uses acoustic
signals to swiftly detect and analyze faults in substations.

• E.ON Group Innovation GmbH (“EGI”) is our intragroup incubator

and accelerator: EGI’s business objective is to implement
innovation projects together with our core business units and
develop them quickly into marketable products and services. EGI
is also responsible for our partnerships with universities, such as
the Energy Research Center, a joint venture between E.ON and
RWTH Aachen University, and our partnership with the
Bits&Watts program at Stanford University in California.

• E.ON One GmbH (see page 34) is a growth and sales platform
for market-ready digital solutions. E.ON One acquires startups,
integrates their digital solutions into E.ON’s system architecture
to ensure their scalability and operational reliability, and markets
them to distribution network and sales companies in and outside
E.ON.

These innovation engines and close collaboration with the business
units’ innovation activities enable E.ON to ensure that it
implements its innovation strategy effectively and efficiently.

Energy Research: Foundation for Developing Climate-
neutral Innovations
E.ON conducts extensive research activities to gain important
insights into key strategic technologies and developments of the
future. We focus on four topics: technology forecasts and
analyses, the establishment and design of distributed sustainable
energy systems, and the development of programs for
comprehensive decarbonization and sustainable heat supply.

In 2023 E.ON’s research and technology team again extended its
international academic influence through a collaboration with
Stanford University in California. We also successfully completed
16 projects as part of our long-standing partnership with RWTH
Aachen University in Germany; 19 more are currently in progress,
including strategically important and business-oriented projects,

Global Innovation Ecosystem Affords Access to New
Technologies and Solutions
In 2023 E.ON successively expanded its collaboration with global
partners, whose networks yield innovation projects and the
development of new business models. E.ON is thus pursuing its
goal of drawing on a consistently well-filled innovation pipeline to
continually deploy innovations in its operating business. In
addition, E.ON tests the possibilities of new business activities,
particularly together with its innovation teams in Silicon Valley
(United States) and Tel Aviv (Israel), and monitors the development
of disruptive innovations in which it sees the potential to generate
new business opportunities or set market standards.

Global Partner Network Helps Deploy Innovations across
E.ON Group
Since 2018, E.ON has worked with six other multinational energy
utilities from Europe, North America, Australia, and Asia in Free
Electrons, a global accelerator program. The aim is to jointly
identify promising startup solutions that enable and accelerate the
energy transition. In 2023 we reached two new milestones: we
entered into partnerships with U.S.-based Rondo to use heat
storage help decarbonize industrial processes and with Naked
Energy of the United Kingdom, whose solar thermal and hybrid
technology we use to develop renewable heat solutions for large-
scale industrial and urban decarbonization projects.

E.ON held its successful Grid Startup Challenge innovation
program for the fifth year running in 2023. All 18 E.ON network
companies participated. The 2023 event again yielded six new
pilot projects that help make network infrastructure more efficient,
sustainable, and resilient. For example, international startups Qube
and Aeromon support E.ON subsidiary Westenergie by providing
autonomous, compact laser sensors for detecting methane leaks in
gas distribution networks. Another startup, Neuron Soundware,

Seagrass: A New Concept for Trading Carbon Certificates
Seagrass Limited, a new E.ON subsidiary founded in 2023, is
tapping the potential of the voluntary carbon market to accelerate
the transition to net-zero emissions and propel decarbonization
globally. One example is the Seagrass Carbon Map. It shows the
locations and projects that back carbon certificates. Seagrass also
increases transparency in the carbon certificate market by
providing additional information—such as satellite images, land
use, and biomass data—on the projects’ locations. A prototype of
the Seagrass Carbon Map was presented at COP28, the UN
Climate Change Conference in Dubai.

Seagrass holds a financial services permission, which allows it to
act as an intermediary on the carbon certificate market and bring
together the market’s supply and demand sides. Seagrass
cooperates with an established exchange (ACX) to process carbon
certificate purchases and sales.

Central Innovation Projects and Scale Hubs: Two
Successful, Mutually Beneficial Approaches to Innovation
E.ON’s central innovation projects are initiated in response to
specific challenges and requests from its units. The central
Innovation division alone managed 117 innovation projects in
2023. It also launched 76 new projects and handed 40 over to our
units to be integrated into the operating business. The innovation
projects handed over in 2023 alone currently promise an
estimated €230 million in sales growth over the next five years.

An example of these innovations is an pilot project for dynamic
pricing for public electric-vehicle charging that E.ON is currently
conducting in Copenhagen. The Industry Innovations team is
running another project called Zero.ON, which aims to help small
and medium-sized enterprises record and quantify their carbon
emissions.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

aspired growth. The use of additional key financial and non-
financial performance indicators is intended to ensure that our
growth is in line with the various interests of our stakeholders and
enable a holistic view of our performance. In particular, we focus
on our customers, employees, shareholders, and bondholders‚
always in line with our environmental, social, and governmental
responsibility as a leading international energy company. Including
key non-financial indicators explicitly anchors sustainability
indicators in particular in the ongoing management of our
businesses.

The following chart summarizes the key performance indicators
used for management purposes.

Scale Hubs Continue Promising Innovation Initiatives
The team at our central Innovation division systematically scans its
projects for potentially scalable or disruptive opportunities. The
purpose is to identify new business ideas and develop them further
with the aim of scaling up the most promising projects. We call
these business initiatives scale hubs. The Adeje Verde (“Green
Adeje”) and Evercharge projects are two such initiatives. Adeje
Verde (Adeje, Tenerife) aims to make solar energy available to an
entire energy community consisting of almost 200 households.
Surplus solar energy is no longer simply fed into the network, but
shared with neighbors within a 2-kilometer radius of the Adeje’s
solar farm.

Evercharge helps E.ON expand its existing charging infrastructure
while also lowering costs. Evercharge uses AI-based software that
detects faults in the system before they are noticed by users or
vehicles can no longer be charged. This predictive maintenance
can shorten service times and reduce costs.

Management Control System

Our big objective is for E.ON to be the sustainable platform for
Europe’s energy transition. In line with our guiding principle
“Making new energy work,” E.ON wants to be the driving force for
change in the energy industry. The long-term and sustainable
increase in shareholder value remains the focus of our strategy,
which is geared toward sustainability, digitalization, and growth.

A uniform Group-wide planning and controlling system is used for
the value-based management of the Group as a whole and its
individual businesses. This system forms the basis for a uniform
mindset Group-wide, while at the same time allowing targeted
steering impulses for individual business units.

E.ON’s Management System
Effective as of the 2022 financial year, adjusted EBITDA,
investments, and earnings per share based on adjusted net income
(“EPS“) have been the most significant indicators for managing our

In addition to the management system, the compensation system
for the Management Board is also designed to support the
implementation of our strategy and thus the long-term success of
E.ON through the sustainable, long-term, and value-oriented
management of the Group. For this reason, the compensation of
the members of the Management Board has also been linked to
the development of selected key performance indicators. The new
Management Board compensation system has been in place since
January 2022.

Most Significant Key Performance Indicators
With our focus on long-term, sustainable, and value-oriented
growth, the most significant key performance indicators are the
main metrics for internal management and the assessment of our
business development and thus also the cornerstones of our
forecast.

Adjusted EBITDA is an earnings figure before interest income,
income taxes, depreciation and amortization that has been
adjusted to exclude non-operating effects. The adjustments
include net book gains, certain restructuring expenses, the mark-
to-market valuation of derivatives, and other non-operating
earnings. Therefore, adjusted EBITDA is the indicator of
sustainable earnings capacity and the appropriate key figure for
determining the performance of our business.

Investments are equal to investments in property, plant, and
equipment, intangible assets, and share investments shown in the
E.ON Group’s Consolidated Statements of Cash Flows.
Investments are the engine for the future growth and digitalization
of E.ON’s business as well as decarbonization. As a reflection of
our strategy, they therefore continue to be a key indicator for
managing our activities.

Adjusted earnings per share (“EPS”) is equal to adjusted net
income divided by the weighted average number of shares
outstanding in the financial year. In addition to operating earnings,
depreciation and amortization, interest income, tax and financial

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

the management system as a key performance indicator to assess
the efficiency of capital employed.

Other Key Performance Indicators
Alongside the performance indicators described above, other
financial and non-financial indicators play a role in the success of
our business and our corporate responsibility. Operating cash flow,
power and gas wheeling volumes, sales volume, as well as
selected employee-related information are examples of other key
performance indicators.

results as well as non-controlling interests are included and
likewise adjusted to exclude non-operating effects. This allows a
holistic assessment of the earnings situation from the perspective
of the shareholders of E.ON SE.

Significant Key Performance Indicators
In order to suitably take into account the interests of our
stakeholders in addition to our focus on growth, our management
system also includes other significant key performance indicators.
As a customer-oriented company, the ability to acquire new
customers and retain existing ones is crucial to our success. Net
Promoter Score (“NPS”) measures customers’ willingness to
recommend E.ON to a friend or colleague (the Customer
Satisfaction chapter contains more information). The
attractiveness of our Company for investors is reflected in total
shareholder return (“TSR”) and dividend per share (“DPS”), which is
part of TSR.

We have made sustainability the core of our corporate strategy. In
everything we do, we keep in mind the consequences of our
actions. The progression of our carbon footprint (the Climate
Protection chapter contains more information), the frequency of
serious incidents and fatalities (“SIF”) (the Occupational Health and
Safety chapter contains more information), and the proportion of
female managers are thus significant key performance indicators
and part of our management system. In addition, our ESG ratings
are incorporated into our management system. This provides a
comprehensive assessment of our actions with respect to
environmental, social, and governance matters.

Solid financing of our business activities is of great importance to
realize our aspired long-term and sustainable growth in line with
the fulfillment of our financial ambitions. For this reason, cash-
conversion rate, which is an indicator of E.ON’s ability to transform
operating earnings into cash inflows, and debt factor, which is a
proxy for our capital structure and ratings, are significant key
figures in our management system. In addition, ROCE is included in

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

Climate Protection and Environmental Management

Climate Protection 

GRI 3-3, GRI 305

Climate change and associated environmental damage pose a
serious threat to people and nature. The use of fossil energy
results in the emission of greenhouse gases (“GHG”). Renewable
and low-carbon energy generation along with efficient energy use
play a key role in reducing emissions and thus limiting global
warming. The current geopolitical challenges to securing Europe’s
energy supply are not making this demanding task any easier. The
transition to a low-carbon economy thus requires more joint
efforts by all energy producers and consumers. This transition
period poses a challenge to energy suppliers’ competitiveness. But
it also offers an opportunity to expand their business. Many
countries, communities, and companies are already focusing on
climate-friendly energy generation and energy-efficiency
measures to achieve their carbon-reduction targets. E.ON’s
strategic focus on customer solutions for the efficient use of
energy and smart energy networks fully aligns its business model
with these global trends.

E.ON’s Approach
Distribution networks like E.ON’s are the platform of the energy
transition: they integrate renewables, connect producers and
consumers, and manage complex energy flows in line with
demand. Our solutions help customers of all kinds use energy
more efficiently, produce their own renewable or low-carbon
energy, and thus reduce their carbon footprint. In short, climate
protection is an integral part of E.ON’s business model. Our
business activities help combat climate change, improve people’s
lives, and create a future worth living. For example, we support
companies and communities in reducing their carbon emissions
and expanding their eMobility charging infrastructure.

E.ON wants to reduce the size of its environmental footprint as
well. Since 2004, the Company has disclosed the annual carbon
emissions from its power and heat generation and from other
business activities not directly related to generation. These include
upstream and downstream emissions associated with E.ON’s
business activities. E.ON calculates emissions using the globally
recognized Greenhouse Gas Protocol Corporate Accounting and
Reporting Standard (“GHG Protocol”) issued by the World
Resources Institute (“WRI”) and the World Business Council for
Sustainable Development (“WBCSD”). The E.ON Management
Board updated the Company’s climate targets in 2020. To achieve
them, we have defined specific actions to reduce our emissions in
all three scopes of the GHG Protocol (see “Goals and Performance
Review” below). We use the Corporate Value Chain (Scope 3)
Accounting and Reporting Standard to compile our Scope 3
emissions. In addition, E.ON has included the achievement of its
climate targets (Scope 1 and 2) in the Management Board’s
compensation system by means of the E.ON Sustainability Index.
The purpose is to further embed ESG aspects like reducing carbon
emissions into how E.ON runs its business.

Guidelines and Policies
In October 2021 E.ON revised its Health, Safety, Environment and
Climate Protection Policy Statement. It clarifies that
environmental and climate protection, just as occupational health
and safety, are integral to E.ON’s business operations. E.ON
considers environmental and climate protection important and
integral management tasks. The policy statement obligates E.ON
to consider environmental and climate protection in all business
decisions. E.ON’s promise to use the best-possible technologies
and procedures in its business processes will reduce its
environmental impact and enhance its energy efficiency. In
addition, it commits E.ON to comply with all health, safety, and
environment (“HSE”) laws and regulations and defines the
appropriate management systems for this (ISO 45001, ISO 14001,
and ISO 50001).

In addition, in late 2021 E.ON adopted an Environmental
Protection Guideline. Information about it can be found in the
Environmental Management chapter.

Two other HSE policies that are more specific in nature—the HSE
Function Policy and the HSE People Guideline—took effect back at
the beginning of 2018. The Function Policy defines HSE roles,
responsibilities, management approaches and tools, and minimum
requirements for the entire organization. It empowers the HSE
division to monitor our units’ compliance with the obligation to
have an environmental management system certified to ISO
14001 or the Eco-Management Audit Scheme (“EMAS”). In
addition, the Function Policy defines HSE standards for incident
management. It thus replaces and updates the standards
stipulated in previous company policies. The HSE People Guideline
goes into greater detail, underlining the importance of
environmental and climate protection and defining specific tasks.
Our Code of Conduct contains general HSE rules with which all
employees must comply.

Organization and Responsibilities
The Group’s Sustainability department took the lead in developing
the Group-wide climate targets. It also monitors progress toward
them (see “Goals and Performance Review” below). The units are
supported in their decarbonization efforts by their HSE team and
our wider HSE organization, which helps design energy-efficiency
measures and shares ideas and best practices. This setup has
enabled E.ON to make progress toward its company-wide
reduction targets for direct and indirect emissions since the targets
were adopted.

E.ON has systematized the management of climate-related risks
as well. In 2020 we further embedded climate-risk reporting into
Group-wide risk management. More information can be found in
the Risks and Chances Report. In addition, our reporting is guided
by the recommendations of the Task Force on Climate-related
Financial Disclosures (“TCFD”). An overview of the disclosures can

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

be found in the Task Force on Climate-related Financial
Disclosures chapter.

In 2022 the Group Sustainability department was incorporated
into the Strategy, Sustainability, and Innovation division in order to
integrate sustainability and climate protection even more closely
into the Group’s overall strategy.

The principles of good corporate governance guide E.ON’s
responsible and value-oriented management. The focus is on
efficient collaboration between the Management Board and the
Supervisory Board, transparent disclosures, and appropriate risk
management. The clear organization of sustainability and climate
activities ensures that everyone involved works together
efficiently and that we continually improve our performance.
Information about E.ON’s progress toward its climate targets is
first presented to the Chief Sustainability Officer, who is also Chief
Executive Officer, and the Sustainability Council. The Chief
Sustainability Officer, who chairs the council, reports to the E.ON
Management Board about the progress achieved on a regular
basis. The council met four times in 2023.

Specific Actions
E.ON has had an ESG Reporting Manual since 2021. The manual’s
detailed descriptions and requirements instruct the units how to
compile and report ESG key performance indicators (“KPIs”). E.ON
then used the manual’s climate-related KPIs to develop a Group-
wide carbon management plan that breaks down the Group-wide
climate targets to the business units. Its purpose is to measure
progress toward these targets separately for each of E.ON’s
business units, factoring in the characteristics of their particular
business, their strategic ambitions, and the climate policies of the
country or countries where they operate. The plan reflects E.ON’s
general management approach: the Group sets the strategic
course and governance framework, while the units have broad
operational decision-making authority. The carbon management
plan took effect in the third quarter of 2022.

CDP is one of the largest international associations of investors
that independently assess the transparency and quality of
companies’ climate reporting. E.ON has reported data on its carbon
emissions to CDP since 2004. In 2023 CDP again gave E.ON an A
rating for tackling climate change: this rating recognizes the
Company’s leading role in climate protection. E.ON is therefore
among the best 346 that in 2023 achieved an A rating out of
nearly 21,000 that were assessed. According to CDP, E.ON’s
demonstrable actions have made it one of the world’s leading
companies in environmental ambition, action, and transparency. In
addition, for the 2022 assessment period (published in 2023) CDP
recognized E.ON once more as a Supplier Engagement Leader.

Under E.ON’s holistic climate strategy, decarbonization measures
follow a clear hierarchy: avoidance and reduction of emissions
have the highest priority. E.ON primarily uses emissions
certificates to offset those emissions that are currently
unavoidable. All of E.ON’s offsets by means of certificates are
completely voluntary and in addition to our climate targets.

The Company funds measures to avoid or eliminate emissions
outside its own value chain by means of offsets and corresponding
emissions certificates. The associated projects are often located in
developing and emerging countries. E.ON uses emissions
certificates to offset emissions at the product level and does not
factor the amounts offset into its own carbon footprint or the KPIs
collected for its own climate targets.

At the same time, we are aware that carbon offsets will play a role
in reducing emissions in the long term. The process can be used to
offset a small portion of remaining emissions. Voluntary carbon
markets and the purchase of highly reputable certificates are
becoming even more important. That is why E.ON developed a
comprehensive strategy for offsetting carbon dioxide emissions
from 2021 onward.

› More details on our carbon offset strategy are described in the
publication entitled “On course for net-zero—Supporting paper for
E.ON’s decarbonization strategy and climate-related disclosures.” ‹

A key element of this strategy is E.ON’s partnership with the LEAF
Coalition, which has been in place since 2021. LEAF, which stands
for “Lowering Emissions by Accelerating Forest finance,” is the
largest private-public initiative against the deforestation of tropical
rainforests. Participants include the Norwegian, British, American,
and South Korean governments and more than 20 companies.
LEAF’s offset certificates aim to finance the protection of these
forests and to support sustainable management approaches that
closely involve policymakers and local stakeholders.

Goals and Performance Review
Our strategic transformation from a traditional energy supplier to a
focused operator of energy networks and energy infrastructure
and to a provider of innovative customer solutions has led to a
reorientation of our efforts to reduce both our direct and indirect
emissions. In 2020 the E.ON Management Board therefore set
new climate targets that are explained below. In parallel, the
Company developed KPIs that are relevant for management
control purposes; they are used, among other purposes, to
calculate the long-term compensation for Management Board
members.

In May 2022 the Science Based Target initiative (“SBTi”) confirmed
that E.ON’s climate targets are consistent with the Paris
Agreement’s 1.5°C target. This means that E.ON’s planned
emissions reductions contribute to limiting global warming to
1.5°C relative to preindustrial levels. To achieve this, we plan to
reduce our Scope 1, 2, and 3 emissions by at least 50 percent by
2030 relative to a 2019 baseline.

› E.ON’s SBTi targets are explained in more detail in our publication
“On course for net-zero—Supporting paper for E.ON’s
decarbonization strategy and climate-related disclosures.” ‹

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Progress and Measures

Carbon Reporting According to the GHG Protocol
E.ON calculates its emissions using the globally recognized
WRI/WBCSD GHG Protocol for the seven GHGs covered by the
Kyoto Protocol: carbon dioxide (“CO2”), methane (“CH4”), nitrous
oxide (“N2O”), hydrofluorocarbons (“HFCs”), perfluorocarbons
(“PFCs”), sulfur hexafluoride (“SF6”) and also nitrogen trifluoride
(“NF3”). CO2 is by far our biggest GHG. Other GHGs like SF6 and
CH4 contribute to E.ON’s climate impact. But they account for a

much smaller share of our GHG emissions than CO2. The Global
Warming Potential (“GWP”) indicates how much GHGs affect
global warming over a period of time compared with CO2. All GHG
emissions can be expressed as CO2 equivalents (“CO2e”) and
therefore be accounted together.

The GHG Protocol defines three scopes (Scopes 1 to 3) for GHG
accounting and reporting. This improves transparency and
provides guidance for different types of climate policies and
business objectives.

E.ON’s climate targets go beyond SBTi requirements for the 1.5°C
target. On the one hand, E.ON intends, by reducing its own GHG
emissions, to become climate-neutral by 2040; our reduction path
for our Scope 1 and 2 emissions therefore foresees reducing these
emissions by 75 percent by 2030 and by 100 percent by 2040. On
the other hand, we aim to reduce our Scope 3 emissions by 50
percent by 2030 and by 100 percent by 2050. Both reduction
paths are relative to a 2019 baseline. Scope 3 emissions occur
primarily during the generation of the power E.ON purchases and
resells and during the use of the gas E.ON sells. They account for
most of E.ON’s Group-wide carbon footprint.

The adoption of our climate strategy initiated actions to help us
achieve the aforementioned climate targets for 2030, 2040, and
2050 and thus to support Europe’s energy transition. E.ON
systematically monitors its progress toward these targets. It is
important to remember that year-on-year comparisons of energy
consumption can be affected by temporary fluctuations caused by
weather patterns and other factors. A period of several years is
necessary to determine whether E.ON’s actions are effective and
where we stand with regard to our targets. Since 2016 we
therefore assess the trend in more detail every three years. The
trend indicated that so far the reduction rate is in line with the
forecasts. Along with the adoption of the aforementioned carbon
management plan in 2022 we refined this process by setting
reduction rates for our individual business units as well. The units
have to conduct controls on an annual basis so that we can see
more exactly whether we are making progress along the
prescribed path. In addition, each unit has the authority to pursue
its own reduction targets that go beyond the target for E.ON as a
whole.

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Scope 1 are direct GHG emissions from fuels combusted in
sources that we own or control, such as E.ON’s power and heat
plants and vehicle fleet. They also include fugitive methane
emissions from our gas distribution networks.

Scope 3 are indirect emissions that occur upstream and
downstream along E.ON’s value chain. They result primarily from
the generation of the electricity the Company purchases and
resells to its customers and the use of the gas sold to them.

Scope 2 are indirect GHG emissions from the generation of
electricity that the Company purchases to power its buildings,
operations, and electric vehicles or that is classified as network
losses in its power distribution networks. These emissions do not
physically occur at E.ON’s facilities but rather at the facility where
the electricity is generated. This is why power distribution losses
are classified as Scope 2 emissions but gas distribution losses as
Scope 1 emissions. Emissions attributable to network losses are
lower in grid segments with lots of renewables feed-in. In line with
the GHG Protocol, we calculate Scope 2 emissions using a
location-based method and a market-based method. For its own
management decision-making, E.ON uses the figure determined
by the location-based method, which is based on the respective
national generation mix. The market-based method yields a
different figure because it is based on the contractually
attributable generation mix of the Company’s electricity suppliers.
However, the effort required to identify every single provider that
feeds electricity into each of E.ON’s networks would be
considerable. We therefore use the emission factor of each
country’s residual generation mix. In most cases, this factor is
significantly higher than the factor of the national generation mix.
Network losses accounted for approximately 3 percent of the
power E.ON distributed in 2023.

Scope 3 also includes the emissions attributable to the production
and use of the goods and services E.ON purchases. In line with the
GHG Protocol, since 2020 we have divided our emissions from
power and heat generation into emissions from “plants owned and
operated” (Scope 1) and “plants owned but leased to and operated
by lessee” (Scope 3) for increased transparency.

Since E.ON removed large-scale fossil-fueled power generation
from its generation portfolio, it has procured power mainly from
wholesale markets where the source of generation is often not
traceable or information about the source is not reliable. When
primary data are unavailable or of insufficient quality, the GHG
Protocol recommends calculating emissions by using secondary
data, such as industry-average data or government statistics. We
therefore calculate the Scope 3 emissions from the generation of
this power by using the official national emission factors of the
countries in which we purchase power resold to end-customers.

Furthermore, we also use market-based methods to calculate the
emissions of power resold to end-customers. The Company can
actively influence this figure by selling green power. This figure is
therefore relevant for management control purposes.

Our direct and indirect CO2e emissions totaled 70.70 million
metric tons in 2023; of these, 3 percent were direct Scope 1
emissions, and 97 percent were indirect Scope 2 and 3 emissions.
Scope 1 emissions decreased by 30 percent compared with the
previous year, indirect emissions by around 20 percent. The
emissions figures relevant for management control purposes were
used for these calculations: location-based Scope 2 emissions and
market-based Scope 3 emissions.

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Scope 1 GRI 305-1
Total CO₂ equivalents in million metric tons1
Power and heat generation2, 3
Fugitive emissions
Company-owned vehicles
Fuels combustion9
Total
1The external GWP sources used are the BEIS, formerly DEFRA, the Naturvårdsverkets, the GHG Protocol, the Överenskommelse Värmemarknadskommittén 2022, and the IPCC AR5 report.
2In accordance with the GHG Protocol, emissions from power and heat generation are divided into emissions from plants owned and operated by E.ON (Scope 1) and emissions from plants leased to, and
operated by, customers (Scope 3). This improves our ability to manage our emissions and make progress toward our targets more transparent.
3The GHG Protocol and BEIS attribute no direct CO₂ emissions to energy generated at renewables facilities and nuclear power stations.
4This figure does not include 2,292 metric kilotons of CO2 from biogenic emissions, in accordance with the GHG Protocol.
5This figure does not include 2,177 metric kilotons of CO2 from biogenic emissions, in accordance with the GHG Protocol.
6This figure does not include 2,876 metric kilotons of CO2 from biogenic emissions, in accordance with the GHG Protocol.
7In 2023, we completed the groupwide introduction of the CH4 tool. The decrease in emissions is mainly due to the transition from the previous calculation methods to the now more accurate technical
accounting method. This now takes into account the actual fugitive emissions associated with our gas distribution networks.
8In 2021, we began introducing our tool for calculating CH4 emissions, which takes into account the latest regulatory requirements and enables gas grid losses to be separated into different categories in
order to improve data quality and transparency. In 2022, we rolled out the tool further across the group.
9To heat buildings.

2021
2.17 6
1.44 8
0.04
0.05
3.71

2022
1.90 5
0.89 8
0.05
0.05
2.88

2023
1.87 4
0.05 7
0.05
0.05
2.01

E.ON’s Scope 1 emissions amounted to 2.01 million metric tons of
CO2e in 2023. They were thus significantly lower than the prior-
year figure of 2.88 million metric tons of CO2e. The decrease is
mainly attributable to the fact that our CH4 tool, whose rollout was
completed in 2023, gives us a more accurate method of
calculating fugitive emissions in our gas distribution networks.
This method’s adoption Group-wide ensures the comparability of
fugitive CH4 emissions.

Emissions from power and heat generation were primarily due to
our distributed combined heat and power (“CHP”) plants. Our
disclosure of Scope 1 emissions from power and heat generation
at leased plants has been more transparent since 2020. We report
emissions from downstream plants leased by us as Scope 3
emissions. These are plants that we installed at customers’
premises and that they operate as lessees for their own needs. For
heat, 61 percent of emissions come from owned generation plants
and 39 percent from leased plants. For power, 38 percent of
emissions come from owned power plants and 62 percent from
leased plants.

Fugitive emissions at E.ON consist predominantly of methane
(CH4) from leaks in gas infrastructure as well as leaks of sulfur
hexafluoride (SF6) and coolants used in energy distribution
equipment.

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→ Forecast Report

→ Risks and Chances Report

We recorded location-based Scope 2 emissions of 3.46 million
metric tons of CO2e in 2023. The higher figure compared with the
previous year resulted from the less green generation mix in our
markets. We reduced power transmission and distribution losses
and power procured externally for our own needs in absolute
terms.

E.ON’s investments to maintain its networks help reduce network
losses as well. E.ON’s approach depends on the type of loss.
Technical losses can be reduced through network optimization. For
this purpose, we are upgrading our networks using smart-grid
technology (more information can be found in the Security of
Supply chapter). This enables the lines and transformers to adapt—
in many cases automatically—to the actual production and
consumption in a given grid segment. However, technical losses
can only be reduced to a certain extent owing to the physical
attributes of power grids. Alongside technical losses there are also
commercial losses, which result primarily from theft.

Scope 2 GRI 305-2
Total CO₂ equivalents in million metric tons1
Power distribution losses (location-based)2
Power distribution losses (market-based)3, 4
Purchased power (location-based)
Purchased power (market-based)
Total (location-based)
Total (market-based)
1The external global warming potential (“GWP“) sources used are the International Energy Agency (“IEA“) and the Association of Issuing Bodies (“AIB“).
2Based on the emission factors of the national electricity mixes for specific geographic regions (source: IEA).
3Based on the emission factors of the national residual mixes for specific geographic regions. A country’s residual mix emission factor represents the emissions and generation that remain after
certificates, contracts, and supplier-specific factors have been claimed and removed from the calculation (source: EPA).
4Power distribution losses in Sweden were almost completely offset by the purchase of green electricity.

2022
3.14
5.52
0.25
0.31
3.38
5.83

2023
3.19
5.85
0.27
0.32
3.46
6.17

2021
3.67
5.56
0.23
0.17
3.90
5.73

E.ON Integrated Annual Report 2023

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→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

E.ON reduced its location-based Scope 3 emissions—which always
account for the largest share of its total carbon footprint—
to 70.69 million metric tons in 2023. We recorded a significant
reduction of over 10 percent year on year, mainly because of the
electricity and gas we sell to end-customers.

The factors again were portfolio streamlining as part of our B2B
strategy, mild weather, and crisis-driven energy conservation. The
market-based figure for power resold to end-customers declined
even more—by more than 17 million tons of CO2e—relative to the
prior year. One of the reasons is an increase in green power’s share
of total power sold (the Sustainable Products and Services chapter
contains more information about our green power products).

Scope 3 GRI 305-3
Total CO₂ equivalents in million metric tons1
Purchased power sold to end-customers (location-based)2
Purchased power sold to end-customers (market-based)2
Combustion of natural gas sold to end-customers2
Purchased goods and services4
Power and heat generation (leased assets)6
Employee commuting
Upstream processes of leased assets (leased vehicles)
Business travel
Total (location-based)
Total (market-based)

2023
35.95 3
30.48 3
30.12
2.92
1.61 7
0.06 10
0.03 12
0.01 14
70.69
65.23

2022
40.48 3
42.51 3
35.63
2.80 5
1.56 8
0.05 11
0.02
0.00 15
80.55
82.58

2021
51.55
54.75
44.15
3.32
1.29 9
0.05 11
0.02 13
0.00 16, 17

100.38
103.58

1 The external GWP sources used include the IEA, the IPCC AR5 report, BEIS, formerly DEFRA, the Naturvårdsverkets, the GHG Protocol, and the Överenskommelse Värmemarknadskommittén 2022.
Furthermore, primary data from external travel service providers was used for the calculation.
2Scope 3 emissions from purchased electricity and the combustion of natural gas sold to end consumers (energy sold to our private and B2B customers) in accordance with the GHG Scope 3 Protocol. The
emissions from the distribution losses of energy sold to distribution partners and the wholesale market are recorded accordingly under our Scope 1 and Scope 2 emissions.
3Includes the purchase of electricity at E.ON-owned and publicly accessible charging stations.
4Including capital goods.
5From 2022, emissions were calculated using an updated method for calculating upstream effects.
6In accordance with the GHG Protocol, emissions from electricity and heat generation are divided into emissions from facilities owned and operated by E.ON (Scope 1) and emissions from facilities leased to
and operated by customers (Scope 3). This enables us to better manage our emissions and make progress towards our targets more transparent.
7This figure does not include 3.8 kilotons of CO2 from biogenic emissions in accordance with the GHG Protocol.
8This figure does not include 3.5 kilotons of CO2 from biogenic emissions in accordance with the GHG Protocol.
9This figure does not include 2.5 kilotons of CO2 from biogenic emissions in accordance with the GHG Protocol.
10We estimate that approximately 40 percent of our employees have worked from home.
11We estimate that, on average, half of our employees have worked from home due to Covid-19.
12From 2023, emissions from hotel stays were considered and an updated method for calculation emissions from air travel was used.
13The figures for leased vehicles relate to 2020.
14This figure includes compensation of around 780 tons of CO2, which has not been deducted from the stated value.
15This figure includes compensation of around 451 tons of CO2, which has not been deducted from the stated value.
16This figure includes compensation of around 98 tons of CO2, which has not been deducted from the stated value.
17Partly based on previous year's figures.

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→ Forecast Report

→ Risks and Chances Report

Environmental Management 

GRI 3-3, GRI 302

E.ON assumes responsibility for preserving the natural
environment and strives to minimize its business activities’
environmental impact. The focus of environmental management,
however, has shifted significantly over the past eight years. The
transformation into the new E.ON—a specialist for infrastructure
and customer solutions to decarbonize the energy world—
substantially changed E.ON’s asset portfolio and environmental
footprint. E.ON operates distribution networks in various European
countries. Environmental management therefore places particular
emphasis on protecting and promoting natural habitats and the
diversity of ecosystems and species in the vicinity of this network
equipment. Furthermore, we aim to address primarily these
environmental aspects: conserving wastewater, water and other
resources, reducing emissions, and generating less waste at our
facilities and offices as well as complying with all international and
national environmental laws and regulations at all times.

E.ON’s Approach
E.ON’s environmental management is guided by the precautionary
principle endorsed by the United Nations, and E.ON has explicitly
supported the UN Global Compact’s ten principles since 2005. In
addition, E.ON is working to define its own environmental
standards, such as ecological corridor management (see “Specific
Actions” below for more information), in order to set a strategic
course for the entire Group and to guide the units’ environmental
protection activities.

We developed an Environmental Protection Guideline in late 2021
that describes E.ON’s holistic approach to environmental
protection. It was published in the first quarter of 2022 and
contains the following five commitments: “We care for
ecosystems,” “We steer our organization toward ecosystem
protection,” “We maximize our impact,” “We set clear targets,” and
“We engage for environmental protection.”

We use our energy management system to continually look for
opportunities to optimize the Group’s energy consumption and the
energy efficiency of our processes. It enables us to reduce
greenhouse gas (“GHG”) emissions and thus also plays an
important role in environmental management, which is a key
component of E.ON’s operational health, safety, and
environmental (“HSE”) management. Combining these topics
underscores that E.ON is equally committed to protecting people
and the environment. In addition, bringing together health and
safety, environmental, and energy management in a joint HSE
organization enables us to leverage synergies because the
approaches and systems are fundamentally similar.

E.ON only wants to do business with companies that share its
commitment to environmental protection. Consequently, we strive
for our suppliers and contractors to comply with our
environmental standards, and our HSE Policy stipulates that they
must have a certified environmental management system in place.

Guidelines and Policies

Environmental Management Systems
All E.ON units—except for very small units and those with non-
material environmental risks—strive to have an environmental
management system that is certified to ISO 14001 or validated by
means of the Eco-Management and Audit Scheme (“EMAS”).

› At year-end 2023, 85 percent of E.ON employees worked in
business units that met this requirement. ‹

E.ON uses the environmental management system it has deployed
(ISO 14001) to identify relevant environmental aspects and to
evaluate the resulting opportunities and risks. The aim is for the
Group to minimize and/or continually reduce its impact on the
environment.

Energy Management Systems (“EnMS”)
ISO 50001 is an international standard whose purpose is to enable
organizations to continually improve their energy efficiency.

In accordance with the German Energy Services Act (German
abbreviation: “EDL-G”), E.ON has also introduced ISO 50001
certification in units that already have an HSE management
system.

› At year-end 2023, 73 percent of E.ON employees worked in
business units with ISO 50001 certification. ‹

E.ON measures and analyzes the energy use of facilities, vehicle
fleets, and buildings at all of these units. The data help us identify
opportunities for energy conservation and take cost-effective
measures to improve energy efficiency. All units without ISO
50001 certification conduct energy audits in accordance with DIN
EN 16247 under the EDL-G in Germany and analogous legislation
in other European countries (more information on measures and
guidelines can be found in the chapters entitled Climate Protection
and Occupational Health and Safety).

As part of the EnMS, the energy team of E.ON companies in
Germany and other countries sets annual targets and conducts
systematic audits to monitor the effectiveness of the measures
taken to achieve them. It also conducts an annual management
review, which is audited by an accredited certification
organization. These mechanisms confirmed the EnMS’s
effectiveness.

Organization and Responsibilities
The Group’s Sustainability department played a leading role in
developing company-wide climate protection targets and has since
then been monitoring progress toward them. E.ON’s units are
responsible for taking steps to reduce their emissions, those
caused by their business activities, and other environmental
impacts. They are supported in these efforts by their Sustainability
and HSE teams and our wider HSE organization, which, for

E.ON Integrated Annual Report 2023

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→ Internal Control System

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→ Forecast Report

→ Risks and Chances Report

example, help design energy-efficiency measures and share ideas
and best practices. The Climate Protection chapter contains
information on E.ON’s new carbon management plan.

The E.ON Environmental Network (“EEN”) is a forum for sharing
information about business-related environmental issues,
environmental management, sustainability, and related law. The
EEN brings together experts from the Energy Networks and
Customer Solutions segments and the HSE and Sustainability
teams. They work together closely in the EEN, which meets on a
quarterly basis, usually virtually. Since the EEN was founded, its
reach in the Group has extended continually. In addition to the
issues addressed in 2021—commercial waste, ISO 14001
environmental assessment, and networking of biodiversity and
environmental protection projects—one of the steps the EEN took
in 2022 was to create a working group for the Federal Soil
Protection and Contaminated Sites Ordinance and the new
Substitute Building Materials Ordinance. It addresses the
requirements that our business units must meet as a result of the
sites ordinance’s amendment and the new materials ordinance.
E.ON also has an international EEN, which brings together E.ON
colleagues outside Germany. Both forums met several times in
2023. We intend to expand these networks in the years ahead and
transform them into Group-wide information-sharing platforms.

Specific Actions
E.ON employees and managers are required to report
environmental incidents. They use an IT application called PRISMA
(Platform for Reporting on Incident and Sustainability
Management and Audits) for this purpose (the Occupational
Health and Safety chapter contains more information on PRISMA
and E.ON’s incident management).

Energy Management
E.ON has taken several steps to improve the energy efficiency of
its facilities in Germany. Its heat supply companies implement
measures to optimize their networks. Its gas and power network
companies conduct measures to improve the energy efficiency of

network equipment. Other steps include installing sensor-
controlled LED lighting in buildings and parking garages and
reducing the energy consumption of ventilation and air-
conditioning systems. We also adjust the heat in our buildings to
demand (the Energy Affordability chapter contains more
information about energy conservation).

eMobility
In 2017 E.ON began offering its employees in Germany incentives
to embrace eMobility. They include discounted leasing contracts
for electric vehicles (“EVs”), at-home charging points, and certified
renewable power tariffs, which enable employees to charge their
EVs with clean energy. E.ON’s Car Policy for the procurement of
company cars and leased vehicles unambiguously supports the use
of all-electric and hybrid vehicles. More information on our
eMobility efforts can be found in the Sustainable Products and
Services chapter.

Environmental Impact Assessments
For projects to build new power lines, gas pipelines, and other
large industrial facilities with a foreseeable environmental impact,
E.ON conducts an environmental impact assessment during the
development phase to obtain construction and operating permits.
We also frequently monitor a facility’s operation to verify that the
initial assessment was correct. In addition, E.ON maintains an
ongoing dialogue with local stakeholders and interested parties on
numerous environmental issues.

Biodiversity
In 2022 E.ON analyzed the extent to which its business model
impacts biodiversity. The analysis took into account the
frameworks of the Science Based Targets Network (“SBTN”) and
the Taskforce on Nature-related Financial Disclosures (“TNFD”).
The findings are divided into the dependencies of E.ON’s business
activities on ecosystem services and these activities’ impacts on
ecosystem services. E.ON’s highest dependency on ecosystem
services is hydroelectricity. The most important ecosystem
services for E.ON’s overall business are flood and storm protection.

The production processes with the highest impact are energy from
biomass, hydropower, and heat plants. We continue to view our
powerline corridors as a significant lever for enhancing biodiversity
and are using ecological corridor management to address it.

E.ON wants to use the findings to develop additional measures to
further promote biodiversity in its business. A follow-up project
was launched for this purpose in 2023. It is analyzing what
measures will enable E.ON to improve its impact on biodiversity.

E.ON’s business units are already implementing local biodiversity
measures. For example, LEW Wasserkraft, our hydropower
subsidiary, places a great emphasis on sustainability and
biodiversity and promotes them in a wide variety of projects.
These include irrigating riparian forests, creating gravel spawning
grounds, and fashioning semi-natural riverbank structures.

E.ON also takes steps to protect wildlife and landscapes and to
promote biodiversity. Bird safety, for example, is an important
issue for many E.ON distribution system operators (“DSOs”). Their
activities in this area include installing nest platforms for storks,
eagles, falcons, and other bird species. Many business units have
also launched tree-planting projects. In addition, E.ON has set up a
Group-wide digital platform for biodiversity and environmental
protection projects to improve the visibility of the issue and the
exchange of information about it.

E.ON has developed an approach for ecological corridor
management (“ECM”) and introduced it Group-wide in 2023 as a
standard for vegetation management in all areas under and near
110 kV high-voltage overhead power lines where ECM is
potentially practicable. We intend to extend this approach to all of
the Group’s DSOs in Europe by 2029. ECM enables E.ON to make
a significant contribution to creating and maintaining permanently
stable biotopes and structures and to promoting species
protection, biodiversity, and the interlinking of valuable
biospheres. ECM encompasses mapping biotopes, designing
biotope-specific management plans, and implementing these plans

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→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

consultations with the Senior Vice President for HSE. In the case of
a major incident (category 4), the unit at which it occurred reports
it directly to the E.ON Management Board member responsible for
the respective unit and to Group HSE within 24 hours.

Progress and Measures 

Energy Consumption within the Organization

GRI 302-1

E.ON consumed 49 million GJ of energy in 2023, 4 million GJ less
than in the prior year (2022: 53 million GJ).

Savings Delivered by Emissions-reduction Projects
E.ON regularly carries out projects to reduce its own GHG
emissions. In 2023 these projects delivered over 18,000 metric
tons of CO₂e savings. The measures to achieve them included
upgrading the boilers in the plants of our district heating business,
converting from natural to green gas, and reducing pipeline
pressure in our gas networks prior to construction or maintenance
in order to prevent fugitive methane emissions.

as part of corridor management. ECM is already in place for an
area the size of roughly 8,500 hectares. Through 2029, we plan to
invest a figure in the double-digit million range and to implement
ECM along the 13,000 kilometers of our high-voltage lines, which
is roughly the area of around 100,000 soccer fields. ECM was
applied to 12 percent of relevant areas in 2023 (previous year:
8 percent). Our ECM approach has been acknowledged outside
E.ON as well and received the Renewables Grid Initiative’s (“RGI”)
2023 Grid Award in the Environmental Protection category. RGI is
an alliance of NGOs, transmission system operators, and distribution
system operators from across Europe engaged in promoting the
energy transition by means of fair, transparent, and sustainable
grid development. The aim is to enable renewables growth to
achieve full decarbonization in line with the Paris Agreement.

Waste Management and Circular Economy
E.ON periodically compiles environmental key performance
indicators for waste. At the start of 2023 we began to catalog, in a
structured way, our activities relating to a circular economy and to
develop a circular economy strategy. CE.ON, our circular economy
project, consists of a cross-discipline team of employees draw
from the Strategy and Purchasing departments to determine this
issue’s relevance for E.ON and design specific activities.

Examples include the transformer and switchgear workshops at
E.ON distribution system operators Westnetz and Bayernwerk.
These workshops have been in operation for many years and will
be an important element of the energy transition in the future.
They refurbish large transformers and other components, thereby
extending their service life and thus contributing to the
achievement of various environmental targets. In 2024 E.ON plans
to adopt a circular economy strategy, which will also cover waste
issues.

Goals and Performance Review
The E.ON Management Board is informed about serious
environmental incidents (category 3 in our Standard on Incident
Management) by means of monthly reports from HSE and periodic

Circular Economy, Waste Avoidance, and Recycling
E.ON always tries to avoid creating waste and, when this is not
feasible, to recover as much of it as possible. If neither avoidance
nor recovery is possible, we ensure, in accordance with legal
requirements, that waste is disposed of correctly and responsibly.
E.ON’s operating business generates hazardous and non-
hazardous waste, as does the retirement of some assets, such as
the dismantling of the Company’s nuclear power plants (“NPPs”) in
Germany.

Non-hazardous Waste

Metric kilotons

Non-hazardous waste

Recovered

Disposed

2023

496.1

467.0

29.1

2022
381.3
364.1
17.3

2021

428.0

410.1

17.9

E.ON’s total amount of non-hazardous waste increased from
381.3 metric kilotons in 2022 to 496.1 metric kilotons in 2023.
There was an increase in 2023 that was attributable to an
expansion of the companies reporting. The figures’ comparability is
therefore limited. E.ON recycled 94 percent of its non-hazardous
waste.

Hazardous Waste

Metric kilotons

Hazardous waste

Recovered

Disposed

2023

205.4

170.7

34.7

2022

162.2
107.5
54.7

2021

141.3

106.7

34.5

E.ON produced 205.4 metric kilotons of hazardous waste in 2023,
about 43 metric kilotons more than in 2022. The year-on-year rise
was likewise caused by an expansion of the companies reporting,
which limits the figures’ comparability. Of this, 83 percent was
recycled.

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Other Atmospheric Emissions1
Metric tons
NOx emissions
SO₂ emissions
Dust emissions
1For generation assets over 20 MW.
2Prior year values have been adjusted.

2023
2,501
828
53

2022
1,727 2
652
51

2021
1,716
581
61

E.ON’s Water Consumption from Decentralized Energy
Generation

Million cubic meters

Fresh water consumption

2023

< 1

2022

< 1

2021

< 1

Fossil-fueled power plants emit nitric oxide (“NOX”), sulfur dioxide
(“SO2”), and dust. This type of power generation is no longer a core
E.ON business. It is therefore no longer considered a core KPI.
E.ON now focuses on small-scale, embedded generation units.
NOX, SO2, and dust emissions result mainly from small gas-fired
CHP plants and larger plants for district heating networks. The
year-on-year rise in NOX and SO2 emissions is mainly attributable
to an expansion of the companies reporting and to higher plant
utilization.

Responsible Water Management
Water is a vital resource that is becoming increasingly scarce in
some parts of the world. Many companies are therefore placing
greater emphasis on identifying and managing water risks at their
operations and along their supply chains. The same is true for
investors and their portfolios. E.ON’s water-related activities relate
to the following areas: the withdrawal of cooling water for the
NPP operated by PEL which in 2023 took place for the last time
(for more information, see Water Management at
PreussenElektra) and the withdrawal of fresh water by E.ON’s
water utility subsidiaries RWW and Avacon Wasser as well as a
small amount in conjunction with our decentralized heating
business. In addition, LEW operates a number of small and
medium-sized run-of-river power plants in Germany with an
installed capacity of 0.5 to 12 MW per plant, which only accounts
for a small share of E.ON’s electricity generation. The water supply
companies RWW and Avacon Wasser as well as LEW are part of
E.ON's portfolio.

RWW and Avacon Wasser supply about 970,000 people,
industrial enterprises, and businesses in Lower Saxony, North
Rhine-Westphalia, and Saxony-Anhalt with roughly 83 million
cubic meters of water annually, of which 36.6 million cubic meters
is groundwater, 46.4 million cubic meters surface water and
0.2 million cubic meters spring water.

Accordingly, this business involves the extraction of water as a
resource and its treatment as well as final distribution to end-
users; it also includes the reuse of wastewater and thus the closing
of the water cycle. Although water operations account for only a
small proportion of the Group’s total sales, we pay particular
attention to the associated consequences from the perspective of
resource conservation and supply security. We use two KPIs to
assess the water utility business’s risks: total withdrawal and
distribution losses. Withdrawal is the amount of water supplied to
end-users; that is, not water used in our own operations. The basis
for a permanent supply of water is a climate with sufficient
precipitation to allow surface and groundwater to reform. This can
generally be anticipated in RWW’s and Avacon Wasser’s service
regions. The regions’ available surface water and groundwater
reserves will secure drinking and process water requirements.

Based on available data, E.ON assesses the current, and the
possibility of future, water scarcity in the relevant regions in which
E.ON uses fresh water for its activities to be generally low.
Additional disclosures on E.ON’s water withdrawal and risks areas
can be found in the ESG Figures. The cessation of electricity
generation at Isar 2 NPP in April 2023 means that E.ON no longer
consumes cooling water to operate its facilities.

Water and climate protection go hand in hand at E.ON’s water
utilities: we conduct a variety of projects to address both issues
and are always looking for new, more environmentally compatible
solutions for wastewater disposal, sewage sludge recycling, as
well as service water and rainwater utilization. For example, we
are designing plans for smart water use in new residential areas
and working on flood-protection systems in municipalities.
Conducting research and development projects enables us to
investigate innovative solutions for qualitative and quantitative
water protection, such as additional potential resources for
irrigation.

In addition, RWW and Avacon Wasser provide information on the
careful use of water as a resource. Important channels are the
company websites and press releases. For example, during the
summer months RWW gives its customers advice on the careful,
appropriate use of fresh water. In addition, RWW has operated
educational facilities—Aquarius and Haus Ruhrnatur—since 1992,
in which visitors can learn about topics related to water supply and
preventive water protection. Museum educators at the two
educational facilities offer various lessons on water and
environmental protection to schools in RWW’s service territory.

E.ON’s Water Consumption from Water Supply Operations
Infrastructure leakage index
("ILI")
Factor
1Figures for 2023 are based on a preliminary estimate based on prior-year figures.

2023
≤ 1.5 1

2022
≤ 1.5

2021
≤ 1.5

Infrastructure leakage index (“ILI”) enables water utilities to
measure and compare water losses. ILI is a KPI for assessing water
losses that is widely used and recognized internationally. ILI
factors in not only the amount of water loss, but also the relevant
parameters (such as pipeline system length and pressure). Unlike
the KPI commonly used in Germany (specific actual water loss, or
QVR), ILI offers better comparability with structurally similar
companies and better guidance for a company’s own water

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→ Forecast Report

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management. By international standards, E.ON’s ILI of less than
1.5 puts it in the best leakage performance category of A (ILI ≤2).

Drinking water reduction targets in our water utility business have
to do with reducing leakages at water utility facilities. Pursuant to
Technical Annex 5.1 of the EU taxonomy, E.ON has set a target of
reaching and consistently maintaining an ILI of less than 1.5 (very
efficient performance, target figure of low leakage). We intend to
achieve this target by conducting targeted maintenance measures
to minimize damage rates at water distribution facilities. In
addition, continual network monitoring and water leakage
analyses will make it possible to recognize damage at water
distribution facilities early and to actively eliminate it. We measure
the amount of water delivered to our customers by using
metrologically highly efficient water meters and thus by
minimizing metering errors.

Water Management at PreussenElektra
The NPP in Germany operated by our subsidiary PreussenElektra
(”PEL”) accounted for a significant share of E.ON’s water
consumption and used. Its NPPs use water for cooling and
processes. PEL is committed to using water efficiently and
sustainably and to maintaining high quality in the river from which
its plants withdraw water. It also strove continually to use less.
PEL observes all laws and regulations regarding water withdrawal
and discharge. The most important law for PEL in this context is
the Federal Water Act (Wasserhaushaltsgesetz, or “WHG”). PEL
protects aquatic flora and fauna by using mechanical purification
processes instead of biocides and by constantly monitoring the
temperature of discharge water. PEL also expects its contractors
to use water sparingly and has binding water management
provisions in its agreements with them.

PEL’s Water Balance
Million cubic meters
Fresh water withdrawal
Fresh water discharge
Fresh water consumption

2023
203
191
13

2022
245
216
29

2021
2,383
2,331
53

PEL withdrew 203.1 million cubic meters of freshwater in 2023,
40 million cubic meters less than in 2022. PEL used freshwater,
which came almost exclusively from rivers, primarily as cooling
water. Water consumption dropped sharply compared with the
previous year because significantly less cooling water was needed
after the shutdown of Isar 2 NPP in April 2023. The withdrawal of
water not used for cooling declined as well. This is related to the
progress of dismantling at Unterweser, Brokdorf, and Grohnde
NPPs. PEL returned 93.8 percent of withdrawn water to its
source.

Safe Handling of Radioactive Waste
PEL is responsible for the safe and reliable operation and
dismantling of its NPPs. Both activities result in radioactive waste.
E.ON is well aware of the high responsibility that is associated with
both.

The Law on the Reorganization of Responsibility in Nuclear Waste
Disposal (Entsorgungsübergangsgesetz, or “EntsÜG”) and the
contract to finance the costs of the nuclear energy phaseout
between the German federal government and German NPP
operators stipulate the division of responsibility for nuclear waste
interim storage and final disposal and its financing.

E.ON aims to minimize the amount as well as the volume of
radioactive waste. We do this in part by separating it from
uncontaminated waste and by subjecting it to certain treatments
that reduce its volume. The nuclear industry distinguishes
between radioactive waste that generates negligible heat—
low-level waste (“LLW”) and intermediate-level waste (“ILW”)—
and waste that generates high heat: high-level waste (“HLW”):

• LLW and ILW account for the largest amount of radioactive

waste in terms of both weight and volume. Examples of LLW
include protective clothing, cleaning equipment, tools, and
building rubble from plant control areas. ILW includes, in
particular, the reactor pressure vessel’s near-core mounting
parts. Together, both waste categories contain less than 1
percent of an NPP’s total radioactivity.

• HLW contains more than 99 percent of an NPP’s total

radioactivity and consists primarily of the fission products of
uranium in the irradiated fuel assemblies.

NPP operators are responsible for packaging LLW and ILW safely
and according to approved standards. After regulatory
certification, packaged LLW and ILW becomes the responsibility of
the German federal government. The Law on the Reorganization of
Responsibility in Nuclear Waste Disposal transferred the
responsibility for operating defined storage facilities for LLW and
ILW. Pursuant to this law, the German federal government is
responsible for the storage of PEL’s LLW and ILW effective
January 1, 2020. This applies to the following PEL facilities: Stade
NPP, Würgassen transport staging hall, Grafenrheinfeld staging
hall, Unterweser radioactive waste storage facility, and
Unterweser storage facility. The Konrad repository for LLW and
ILW is currently being built by BGE, the German Federal Company
for Radioactive Waste Disposal. BGE expects Konrad to be
commissioned in 2029.

All central tasks related to the handling and disposal of radioactive
waste have been combined at PEL’s Nuclear Waste Management
department since July 1, 2023. This optimizes the on-schedule
and efficient coordination of all strategically important aspects of
nuclear waste disposal at PEL’s fleet of NPPs undergoing
dismantling. The head of Nuclear Waste Management reports
directly to the PEL’s CEO. Key objectives are to standardize and
digitalize nuclear waste disposal and thus to optimize related
processes and the quality—from waste generation and collection

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

to processing and final processing for intermediate storage and for
the transfer of ownership to the relevant federal company.

and municipal customers. E.ON continually adjusts this portfolio to
better meet its customers’ needs, respond to market changes, and
utilize new technologies.

As with LLW and ILW, irradiated fuel assemblies are placed in
approved transport and storage containers and stored in interim
storage facilities at the NPPs. Under the Law on the
Reorganization of Responsibility in Nuclear Waste Disposal, the
interim storage facilities and containers of irradiated fuel
assemblies became the property and responsibility of the German
federal government effective January 1, 2019. Fuel assemblies
will remain in the interim storage facilities until Germany has a
state-owned receiving facility or repository for HLW. When this
will happen is unclear. The responsibility for final disposal lies with
the German federal government.

Radioactive waste
Metric tons
Low and intermediate-level
radioactive waste
High-level radioactive waste

2023

2022

2021

1,374.1
0.0

1,105.7
0.0

1,420.2
65.0

For 2023 PEL submitted notification for 268.4 metric tons more
LLW and ILW than for 2022. The amount of waste is subject to
fluctuations, depending on the NPPs’ dismantling activities. As in
the prior year, HLW amounted to 0 metric tons due to the
decommissioning of NPPs. New fuel rods were installed in Isar 2
NPP—which continued to operate temporarily until April 15,
2023—for the last time in October 2021.

Sustainable Products and Services 

GRI 3-3

E.ON’s Approach
E.ON offers distributed energy systems for households under the
brand name Future Energy Home. Customers can use a variety of
solutions: solar modules for generating their own energy and
battery systems for storing it as well as charging stations for
electric vehicles (“EVs”), heat pumps, and other heating solutions.
The devices are connected to E.ON Home, an energy-management
app; launched in 2018, it was available in six countries in the year
under review. Regardless of where they are, customers can use the
app to view their home’s energy output and consumption, control
their devices, and reduce their energy use and carbon emissions.
E.ON added new functions to the app in 2023, particularly for
electromobility (“eMobility”). The aim is to enable customers to
conveniently and automatically charge their EV when energy is
cheaper and greener. Other features that provide our customer
with additional services for energy optimization and thus savings
in smart charging and for improved use of stored solar power are
planned for 2024 and are currently in the development and test
phase.

For digital energy-management solutions to function seamlessly,
smart energy meters are essential. An EU Directive from 2021
stipulates that, to the degree technically and financially feasible, all
customers should have a smart energy meter. Member states
must transpose this directive into national law. For example,
Germany’s Act on the Digitalization of the Energy Transition,
which was amended in 2023, specifies that all customers must be
equipped with a smart energy meter by 2032. More information
can be found below under “Goals and Performance Review.”

Greenhouse gas emissions cannot be limited only by the way
energy is generated. Energy efficiency and other methods of
reducing consumption as well as energy recovery can lower
emissions, too. E.ON has a broad portfolio of such solutions, which
it markets to residential customers and to industrial, commercial,

Also, eMobility will play a significant role in the energy transition.
Germany’s transport sector emitted around 148 million metric
tons of CO₂ equivalents (“CO2e”) in 2021. The German Climate
Protection Act, which was amended in 2021, calls for these

emissions to be reduced to a maximum of 85 million metric tons of
CO2e per year by 2030. To achieve this, passenger car and road
freight transport must be climate-neutral and the range of
alternative drivetrains and the infrastructure to supply them with
energy must be massively expanded. One million publicly
accessible charging points are to be installed in Germany alone by
2030. In addition, there will be charging points in eCar drivers’
private and business environments and at the premises of EV fleet
operators. E.ON’s objective is to use its experience in the energy
sector to enable EV charging in public places, at work, and at
home.

E.ON offers comprehensive infrastructure solutions to make
charging both economical and climate-friendly. Under its E.ON
Drive brand, E.ON plans and installs charging stations and
connects them to the power grid. E.ON is also responsible for
supplying energy and operating the equipment. Our eMobility
business continues to focus on three areas: E.ON Drive Solutions
serves private and business users. Its focus is on offerings for
charging at work, on the go, and at home, which include a variety
of charging stations as well as related installation and energy
services. In addition, E.ON Drive eTransport is engaged in charging
solutions for the electrification of commercial vehicles. E.ON Drive
Infrastructure is a charge point operator (“CPO”) and thus provides
charging infrastructure in public places.

Distributed, flexible, and connected supply systems are crucial for
the future energy world. E.ON wants to propel their development
with its Energy Infrastructure Solutions (“EIS”) business. This
business develops energy units to supply cities and communities
as well as commercial and industrial customers with sustainable
heat (steam), cooling, and electricity. Its portfolio includes district
heating and cooling, distributed solutions for city districts and
industrial and commercial customers as well as products and
services for greater energy efficiency. EIS’s offerings incorporate
the latest technology, including large-scale heat pumps,
combined-heat-and-power (“CHP”) and energy-recovery plants as
well as waste-heat recovery and low-temperature heating and

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

cooling networks. Some solutions are complemented by software-
based solutions and analytics that enable customers to reduce
their energy consumption, costs, and greenhouse gas emissions by
visualizing and optimizing their energy use.

Organization and Responsibilities
Our Chief Operating Officer–Commercial, who is a member of the
E.ON Management Board, has overall responsibility for the entire
customer business, including the Customer Solutions segment.
E.ON Energy Infrastructure Solutions (“EIS”) and Business-to-
Customer (“B2C”) work with various E.ON business units on a wide
range of topics, such as product development, plant operation, and
sustainability management. Responsibility for this lies with the
regional units for their respective market (including Western,
Central, and Eastern Europe, the United Kingdom, and
Scandinavia).

E.ON’s distribution system operators (“DSOs”) across Europe,
which are part of the Energy Networks segment, are responsible
for installing smart energy meters in their service territories; the
exception is the United Kingdom, where E.ON’s retail organization
provides them to its customers. German law created two roles for
the provision of smart energy meters. The first role, the default
metering provider, is responsible for the mass rollout of the
standard smart energy meter mandated by German law. At E.ON,
this role is performed by its DSOs. The second role, the
competitive metering service provider, offers the standard smart
energy meter as well as other metering solutions. At E.ON, this
role is performed by its German retail sales unit. In addition, E.ON
subsidiaries act as smart-meter service providers for municipal
utilities and regional energy suppliers in Germany.

Of E.ON’s three business units active in eMobility, E.ON Drive
Solutions plays a Group-wide role as a competence center for
effective and attractive charging solutions. E.ON Drive Solutions is
represented across Europe, and its task areas include sales,
operations, and IT management.

Specific Actions
E.ON Plus enables residential customers in Germany to bundle two
or more energy contracts for power or gas and to benefit from 100
percent green power at no extra charge. By meeting certain
conditions, they can receive an annual discount of €60 per
contract. E.ON contracts throughout Germany are eligible.
Moreover, customers can bundle their own contracts or participate
in E.ON Plus with family members, friends, or neighbors.

power heat pumps and eMobility charging infrastructure. E.ON
enters into long-term partnerships, such as the energy partnership
it concluded with Messe Berlin for a sustainable supply of heat and
cooling. By 2025, EIS will convert the trade fair ground’s heat and
cooling supply to climate-friendly technologies. Various heat
sources will work together and thus yield significant energy,
carbon, and cost savings and also ensure greater independence
from individual energy sources.

As an eMobility provider (“EMP”), we give eCar drivers access to
our charging network. This network also includes charging points
from other providers that are available to E.ON customers as
roaming options. In addition, we offer residential customers
innovative charging stations and specific electricity tariffs. We
supply our commercial customers with both regular and fast
charging stations. Furthermore, we support them with solutions
for EV fleet management.

On the commercial vehicle side, E.ON Drive aims to capitalize on
growth in the market segments of electric road haulage and public
passenger transport as well. Battery-powered commercial vehicles
are still the exception, especially in the heavy-duty category.
Unlike the passenger car market, the transportation sector is only
at the beginning of its evolution toward zero-emission mobility.
But interest among companies and municipalities in electrifying
their truck, bus, and van fleets is growing. Climate targets,
increasing freight transport, and the growth trajectory of electric
drives in local and long-distance public transport will pose greater
challenges for charging infrastructure, land use, and grid
connections as well. E.ON wants to help fleet operators meet
these challenges by significantly expanding its portfolio of
products and services for charging fleets of electric commercial
vehicles.

EIS pursues a partnership-based business approach in developing
integrated solutions for heating, cooling, electricity, and mobility.
These holistic concepts that integrate the individual sectors—for
example, electricity from photovoltaic systems can be used to

EIS customers increasingly link their sustainability targets to the
United Nations Sustainable Development Goals (“UN SDGs”),
especially SDGs 7 (Affordable and Clean Energy), 11 (Sustainable
Cities and Communities), and 13 (Climate Action). EIS formed
partnerships with municipal, industrial, and real estate customers
across Europe in 2023 to support them in achieving their
sustainability targets. By assisting them with development
projects that have long-lasting effects, we also aim to help
safeguard their assets’ long-term value.

E.ON continues to take part in research projects at universities and
research institutions. The purpose is to develop the technologies,
systems, and approaches that will make it possible to meet the
needs of tomorrow’s energy world. Our flagship partnership is
with the E.ON Energy Research Center at RWTH Aachen
University. Its research has an interdisciplinary approach and
focuses mainly on distributed generation, smart grids, and efficient
building technologies.

Goals and Performance Review
E.ON wants to offer its customers pioneering energy solutions for
the energy world of today and tomorrow. We want our solutions
to help them save money, use less energy where possible, and
emit less carbon dioxide. E.ON has set a target for this: by 2030,
the Company aims to reduce customers’ carbon dioxide emissions
by 50 percent relative to 2016 (you can find out more about
E.ON’s climate targets in the Climate Protection chapter).

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

demands and market standards. Teams from our regional units
monitor these EIS projects on a regular basis.

Progress and Measures

2022

2023

5,300
4,874
1,050

5,830
5,824
1,052

Installed Smart Energy Meters by Country 
Thousand units
Rollout countries
United Kingdom
Germany1
Sweden
Pilot countries
Romania
Slovakia2
Hungary
Czech Republic
Poland
Total
1Includes digital meters.
2The company VSEH operating in Slovakia was deconsolidated in the end of 2023.

346
105
330
10
163
12,178

451
0
411
25
211
13,804

2021

4,738
3,112
1,047

306
100
188
5
158
9,654

E.ON’s goal is to equip all its customers with a smart energy meter
in the markets covered by the EU directive. However, regulatory
delays in the certification of the communication units, known as
smart energy meter gateways, prevented DSOs in Germany from
starting to gradually rollout smart energy metering systems until
February 2020. Until the responsible federal authority withdrew
the market declaration in May 2022, the rollout of smart energy
metering systems in Germany proceeded according to plan. Since
then, it has continued on a reduced scale. A renewed ramp-up
required an amended law that took effect in mid-2023.

The E.ON Drive Infrastructure team invests in, builds, and operates
charging infrastructure at publicly accessible locations to support
the development of a Europe-wide network. It aims to expand its
network by 1,000 charging points per year and is focusing on
three key use cases to achieve this target: in the immediate vicinity
of densely populated residential areas, city centers, and
attractions; in partnership with high-traffic destinations, such as
supermarkets or hotels and restaurants; and along freeways.

The impact that EIS’s projects in the industrial sector have on our
customers’ sustainability can be measured by a variety of KPIs.
These KPIs range from carbon-emissions savings to reductions in
energy costs and consumption including reductions in final energy
consumption (such as electricity) as well as primary energy usage
(for example, fuel consumption to generate electricity or heat). Due
to country-specific standards and reporting obligations, however,
these KPIs are not consistently consolidated Group-wide.

Depending on the project and customer requirements, we also use
a variety of KPIs to evaluate the effectiveness of EIS solutions for
customers in the real estate and housing sector. These KPIs
include primary energy consumption (such as the use of gas to
generate heat), avoided emissions (typically CO2), and the
deployment of renewable generation technologies (such as
geothermal energy and heat pumps) in new property
developments. Targets for these KPIs differ based on customer

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Employees and Society

Occupational Health and Safety 

GRI 3-3, GRI 403

E.ON works continually to establish a caring culture. This
encompasses ensuring our employees’ safety in the workplace,
promoting their health, and also supporting their mental well-
being. Many employees perform high-risk work, such as on energy
networks, gas pipelines, and other industrial facilities. Stringent
safety standards are therefore of particular importance to E.ON,
because employees’ health is E.ON’s top priority.

E.ON’s Approach
Health and safety (“H&S”) have long been firmly embedded in
E.ON’s corporate culture and its organizational setup, policies, and
procedures. E.ON’s approach is proactive and preventive.

We are unambiguously committed to the principle of zero
tolerance of accidents. E.ON’s main objective is to prevent
occupational accidents from the outset. This applies to E.ON
employees as well as contractor employees who work on its
behalf.

E.ON’s ambition is to extensively promote employees’ well-being
and enable them to maintain their performance and employability.
In particular, we try to prevent those health conditions that most
frequently result in incapacity for work. E.ON’s health
management includes designing and providing health services
(such as flu vaccinations) as well as target-group-specific
individual measures to maintain health in the different phases of
employees’ lives. It typically encompasses issues that are relevant
for all employees or for certain target groups. Issues include
general health maintenance, nutrition, exercise, mental health,
stress management, and addiction prevention. E.ON promotes
them by means of training sessions, information leaflets,

presentations, and digital formats. Its use of the latter was again
high due to hybrid work.

Guidelines and Policies
E.ON is committed to a culture of prevention. We reaffirmed this
in 2009 by signing the Düsseldorf Statement on the Seoul
Declaration on Safety and Health at Work as well as the
Luxembourg Declaration on Workplace Health Promotion.

all our operating units (except for very small ones and those with
insignificant risks and potential impact) to have in place an
occupational H&S management system certified to international
standards—such as ISO 45001 (which replaced OHSAS 18001)—
and to improve the system on an ongoing basis.

› At year-end 2023, 83 percent of our employees worked at
business units certified to ISO 45001. ‹

E.ON has had a Group Company Agreement on Health for all
employees in Germany since 2015; it was last revised in 2018. Its
purpose is to foster a healthy work environment and promote the
health of all employees. It defines four action areas: occupational
health management, addiction prevention and intervention,
occupational integration management, and employee counseling.

The E.ON Health, Safety, Environment & Climate Protection Policy
Statement, which was originally published in 2018, was updated
in 2021 to reflect E.ON’s Vision Zero for safety targets as well as
its climate and environmental targets in the context of the EU
taxonomy. In addition, we simplified the document’s language and
eliminated redundancies.

A Group-wide standard for managing risks to health, safety, and
the environment (“HSE”) has applied in the Company since the
start of 2021. It defines the minimum requirements for identifying,
analyzing, evaluating, managing, and monitoring HSE and other
sustainability-related dangers and opportunities. The standards’
requirements are also supported by IT solutions, which are mainly
used to create risk assessments and/or indices as well as activity-
related danger evaluations. Our employees have the opportunity to
view danger evaluations relevant to them and the resulting
protection measures.

The Group HSE Function Policy defines HSE roles, responsibilities,
management expectations, and reporting channels. It sets
minimum requirements and defines management tools needed to
prevent physical and mental harm in the workplace. It also requires

E.ON refined the Group HSE Function Policy in 2022. For example,
we added or sharpened the definition of tasks and task areas and
formulations, in part to better integrate sustainability aspects
Group-wide, including task areas such as the environment and
biodiversity, sustainability reporting, and supply chain.

In addition, the People Guideline on HSE communicates E.ON’s
HSE aspirations and states the expectation that all employees
embrace HSE on the job. It also describes E.ON’s Safety F1RST
principles for the safety mindset and behaviors necessary to
prevent accidents. The guideline contains extra tasks for managers
because their responsibilities include leading by example with
regard to HSE.

The Group Standard for Incident Management, which applies to
E.ON contractors as well, establishes consistent rules for
classifying, investigating, analyzing, and reporting HSE incidents
and for sharing information. It complements PRISMA (Platform for
Reporting on Incident and Sustainability Management and Audits),
E.ON’s IT solution for incident management, which is described
below under “Specific Actions.”

The Group Standard on HSE Management Expectations, which
took effect in 2022, defines expectations for 15 core elements. It
addresses occupational safety and accident prevention as well as
the safety of E.ON’s technical facilities, products, and services over
their entire life cycle, HSE in project management. The chapter
entitled Data Protection, Cybersecurity, and Product Safety
contains more information about product safety. This standard

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ About this Report

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

provides the foundation for all cascading HSE rules and processes
at E.ON, thereby supplementing the requirements of the relevant
standards (including VDE, DVGW, DIN, and ISO). E.ON developed
an Expectations Maturity Assessment Tool (“EMAT”) to simplify
implementation and assess the status of management systems
and rolled it out in April 2023. The tool is a specification of the
aforementioned Group Standard on HSE Management
Expectations adopted in 2022. In addition, we opened and/or
migrated two IT portals to support HSE compliance processes:
Red-on-line (formerly known as Gutwin) for managing E.ON’s legal
obligations and eNorm for managing obligations from norms that
E.ON must apply (such as Paragraph 49 of Germany’s Energy
Industry Act) and/or would like to apply (including, for example,
ISO 45001 and ISO 50001).

In addition, the HSE division works closely with the Human Rights
Center of Expertise and Group Compliance with regard to
Germany’s Supply Chain Due Diligence Act to monitor compliance
with procurement policies and standards and to ensure adherence
to E.ON’s minimum standards for HSE. This collaboration likewise
resulted in additional HSE issues being embedded in procurement
processes, such as dealing with smaller suppliers. Harmonized
minimum HSE requirements for contractors now apply at all E.ON
companies in Germany; these requirements may be supplemented
by additional requirements depending on the services the
companies procure. The implementation of a Group-wide standard
for contractor management continues at E.ON companies and
their processes for contractor management are being adjusted
accordingly. This new standard defines minimum requirements
and roles and responsibilities to ensure the consistent
management and evaluation of HSE issues and risks in the
collaboration with contractors. E.ON companies must integrate the
requirements into their processes by May 2024. They are
supported by a catalogue of contractor management measures,
which also serves as an assessment tool for the implementation of
the standard.

More than 40 E.ON companies in Germany are now certified to
ISO 45001 (occupational safety), ISO 14001 (environmental
protection), and ISO 50001 (energy management) by means of a
multisite process called E.ON Matrix Certification. Most of these
companies are network companies and their subsidiaries, sales
companies, and companies that offer integrated energy
infrastructure solutions. This is another step to manage these
companies in terms of occupational health and safety and
environmental protection, to leverage synergies, and to harmonize
processes.

Organization and Responsibilities
E.ON is committed to protecting people and the environment.
Because the approaches and systems for both are similar, E.ON
combines environmental management and occupational H&S
management in a single HSE organization. The E.ON Management
Board and the management of our units are responsible for E.ON’s
HSE performance, which includes compliance as well as
improvement. They set strategic targets and update policies to
foster continuous improvement. They are supported and advised
by the HSE department at Corporate Functions and the E.ON HSE
Council. The council is composed of senior executives and
employee representatives from different business areas and
countries in which E.ON is active. It meets at least two times a
year and is chaired by the member of the E.ON Management Board
responsible for HSE. The second HSE Council meeting was
rescheduled to January 2024 because of a change in division
heads. E.ON units have their own HSE councils and expert teams
as well. They define the HSE requirements for their unit and plans
to implement them. Every unit must ensure that it meets E.ON’s
corporate and HSE standards, design and implement HSE plans
according to local needs, and follow E.ON’s HSE Strategy
Roadmap for 2021–23.

E.ON’s International Health Experts team intensified its
collaboration to foster health-related improvements and
innovations and thus its health strategy. Since 2022 the team has

again been sharing knowledge and experience between countries
to identify and leverage collaboration synergies.

Specific Actions
The HSE department oversees strategic H&S training sessions.
This includes the training provided to the E.ON Group’s top 100
executives, programs for senior managers in the operating
business, and training for staff who conduct incident
investigations (such as root-cause analysis). With regard to the
Group HSE Strategy Roadmap, E.ON’s units conduct their own
operational H&S training, programs to enhance HSE culture, and
training required by law.

E.ON managers in Germany can enroll in Healthy Leadership, a
training module on how to address health issues and thereby
promote health in their team. This training continued to be
conducted digitally in 2023 and covered issues such as
psychological security in teams, stress reduction, mental health,
and tips for an ergonomic workplace. E.ON employees in Germany
had free access to online ergonomics advisors, including for their
home office.

In addition, workshops for a common understanding of E.ON’s
caring culture were held for the top 100 executives and senior
managers from operations and administration.

Furthermore, training formats for employees and managers were
revised in 2023. The findings of extensive use analyses (the
employee survey and in-depth interviews with senior
management) were used to make target-group-specific
adjustments.

Training content given a sharper focus included psychological
safety, communications, and appreciation. This was accompanied
by an ambassador campaign in which selected top 100
personalities describe what caring culture means for their area of
responsibility.

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

E.ON considers itself a learning company whose ambition is
continuous improvement. This includes a constructive culture of
failure as well. We thoroughly investigate incidents by conducting
root-cause analyses (“RCA”). For this purpose, E.ON has
introduced a specific Group standard and, in 2023, further
expanded the related training and continuing skills development
offerings. The training courses on offer cover topics such as
investigation methods and communication. Lessons learned from
incident investigations are shared throughout the Group and are
incorporated into the units’ activities and into working groups.
E.ON also uses the lessons learned to institute preventive
measures.

PRISMA, an integrated IT solution, is the main component of
E.ON’s online incident management system and is used by all E.ON
units. It enables us to reach many users, report and manage data,
and ensure a high degree of transparency. Incident investigations
are entered and stored directly in PRISMA, ensuring that all
companies and Corporate Functions always work with the same
database. Incident reporting is prompt, and the situation should be
clear for everyone involved. All this is intended to help prevent
incidents. E.ON has five categories of incidents. They range from 0
(low) to 4 (major). E.ON’s HSE Standard on Incident Management
requires the units to use PRISMA to report category 4 incidents to
the HSE department at Corporate Functions within 24 hours; in
addition, the units immediately forward the information to the
Management Board. Employees must report all incidents,
regardless of their severity, using PRISMA. No employee needs to
fear any disadvantages. In addition, their personal data are always
protected and can only be accessed by limited user groups. E.ON
analyses all incidents. If employees or contractors who find
themselves in a situation that they believe is potentially
dangerous, they have clear instructions to suspend work
immediately and, if necessary, leave the work area. They are also
instructed to alert their colleagues to potentially dangerous
situations.

E.ON’s managers fulfil their responsibility as health and safety
leaders in part by going on safety walks and engaging in dialogue
with employees. During management visits, known as gemba
walks, they can take a close look at workplaces, talk directly with
employees, and deepen their understanding of HSE issues,
including risks. The Group-wide HSE app (formerly “Go, See &
Talk”), which can be downloaded on PRISMA, facilitates the
process. Among other things, it contains questions for each type of
work environment, including safety culture and workplace health
issues. E.ON managers also use the app to submit answers they
received, their own observations, and photos and documents. The
information is automatically entered into PRISMA for additional
analysis. Since 2022, near misses and unsafe conditions or
behaviors can also be recorded in the app. More functions will
follow as part of a program called Digitalization@HSE that was
launched in the year under review. For example, the app’s
functions for conducting safety walks will be simplified to better
involve all employees. The overarching objective is to improve
E.ON’s entire HSE performance. The HSE division has conducted
quick checks since August 2021. They involve an outside partner
evaluating E.ON’s safety culture and identifying possible risks. So
far, 21 quick checks have been conducted at our operating units.

E.ON runs an HSE Community that extends across all regions and
segments. It helps us be a learning company and serves in
particular to share knowledge and experience. The community
meets regularly and, as needed, in special expert groups. Experts
work together to achieve improvements in key areas like incident
prevention. The range of topics in 2023 included compliance with
Germany’s Substitute Construction Materials Regulation (German
abbreviation: ErsatzbaustoffV) and Federal Soil Protection and
Contaminated Sites Regulation (German abbreviation: BBodSchV),
the protection and promotion of biodiversity and species diversity,
electrical safety, HSE in the installation business, HSE at the
Energy Networks segment, and safety in underground
engineering.

The units and Corporate Functions also work together on Connect,
E.ON’s Group-wide social media platform. The form and content of
HSE topics on the platform are continually expanded and updated.
The additions in 2023 included an HSE live dashboard that
displays HSE key performance indicators for the entire E.ON Group
and updates them daily. The dashboard went live in May.

Employees and managers who have questions or concerns about
their physical or mental health can contact the Employee
Assistance Program (“EAP”). The EAP is a free health-advisory and
life-coaching service available in multiple languages to E.ON staff
in Germany, the United Kingdom, Sweden, Italy, the Czech
Republic, Slovakia, and Hungary. We have similar programs in
other countries where we operate. Alongside the EAP, E.ON offers
employees and managers one-on-one psycho-social counseling.

There are also supplementary functions and roles at E.ON,
including social, addiction, and health counseling. Across the
Company, these functions and roles are performed by employees
alongside their regular duties. These employees are obliged to
maintain confidentiality.

E.ON employees can also take advantage of specific preventive
measures (for example, nutrition counseling, and colon and skin
cancer screening), consult company physicians, and take
advantage of EAP benefits as well as use company fitness
facilities.

Goals and Performance Review
The E.ON Management Board is informed about category 3 and 4
incidents, developments relating to accidents, and related
measures and programs by means of monthly reports from HSE
and regular consultations with the Senior Vice President Group
HSE. The units report fatal and life-threatening incidents directly
to the Management Board within 24 hours.

The purpose of E.ON’s incident analyses is to understand causes,
take measures to prevent them, and identify risks. If accident data

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indicate that a unit does not meet E.ON standards, the HSE
department supports it in optimization. In addition, Group Audit
may conduct an HSE audit at the unit.

The findings of the incident investigations and HSE audits
completed in 2023 show that HSE management systems are
largely effective. The units have adopted the auditors’ resulting
recommendations and have generally used them to design
corrective and preventive actions. It also became clear, however,
that employees’ safety awareness was not fully adequate in all
teams. It therefore remains extremely important to continually
point out to E.ON employees and contractor employees all the
requirements of HSE management and their own responsibility:
they must look after themselves and their colleagues and speak up
immediately if they detect a potential safety risk. Overall, E.ON has
observed for several years that occupational safety in its units is
improving continually. We can clearly see that our measures to
prevent serious occupational accidents are having an effect. One
example is a discernable shift from serious incidents to less serious
incidents. Furthermore, E.ON views audits—and the findings and
recommendations they yield—as opportunities to foster
continuous improvement.

Health and safety concerns have always been a high priority for
the E.ON Management Board. In 2020 E.ON adopted a new HSE
strategy (“Roadmap 2021–23”), endorsed by the HSE Council,
whose aim is to position E.ON as a leading HSE company. The
strategy contains underlying targets for the operating units,
including H&S, and their respective board members. In addition,
the Management Board set personal H&S targets for top
executives. The targets for top executives and units are individual.
Their purpose is to further reduce the frequency of serious
incidents and fatalities (“SIF”) and thus to reach E.ON’s ultimate
objective of zero major harm as soon as possible. The changes took
effect on January 1, 2021. The primary focus in 2023 was on
contractor management and digitalization. In addition, a review
program called DSS Quick Checks was used to design additional (in
some cases company-specific) measures to improve HSE

processes that will be implemented beginning in 2024.
Furthermore, stakeholders from E.ON’s operating business and
HSE managers thoroughly discussed and analyzed the business’s
challenges and drivers and the resulting key issues for the new
health strategy for 2024–2026. These findings were drawn on to
design the strategy, which the HSE Council approved at the end of
2023 for implementation at the units and at Group HSE beginning
in 2024.

The extent to which E.ON’s health strategy is successful depends
in part on whether employees receive information about health
and prevention and whether this motivates them to participate in
related programs. To increase willingness to participate, health
programs are often tailored to the needs of specific target groups.
E.ON’s network operators in Germany, for example, target their
employees aged 50 and over in particular as well as employees in
their field offices. Actions include workshops on healthy living in
older age and preparing for retirement. There are also special
offers, for example, for operational employees such as fitters and
administrative staff. The return on investment (“ROI”) of many
health programs is calculated by comparing costs with avoided
absenteeism based on research and statistics. So that all
employees feel comfortable, valued, and supported in their work
environment, E.ON places particular emphasis on mental health.
We provide information on the importance of stress management
and show how to recognize signs of mental health issues. In
addition, E.ON has assistance and training on stress reduction,
self-assessment tests, and a direct support offering, including
through the EAP.

To propel its health strategy in a targeted way, E.ON is also
conducting a health inventory across all its companies in Germany
and elsewhere in line with its HSE vision. The project’s purpose is
to actively foster employees’ health and well-being and to improve
Group-wide transparency regarding health and well-being. Data
collected in the health inventory will be used to support E.ON’s
ongoing efforts for greater collaboration in its HSE organization
and to address current challenges and trends. The data will also

promote the sharing of best practices across all units and countries
in order to further improve our HSE culture and health
management and to jointly set strategic targets and the direction
of further HSE culture and health strategies.

Progress and Measures

Accident Statistics
Serious incidents and fatalities (“SIF”) measures accidents and
incidents that caused serious or fatal injuries and that surpass a
predefined severity threshold.

Employee SIF1

SIF

2023
0.03

2022
0.04

2021
0.10

1Serious incidents and fatalities measures accidents and incidents per million hours of work that
have caused serious or fatal injuries and that surpass a predefined severity threshold per million
hours of work.

At 0.03 , employee SIF was below the prior-year level (2022:
0.04).

› Contractor SIF increased to 0.06 (2022: 0.05). Combined SIF was
0.04 in 2023 (2022: 0.05). ‹

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Employee LTIF1

LTIF

2023
2.17

2022
2.10

2021
2.10

NMFR

2023
40.32 

2022
36.00 

2021
34.00 

Employee NMFR1

1Lost-time injury frequency measures work-related accidents resulting in lost time per million
hours of work.

1Near-miss frequency rate measures unplanned incidents that had the potential to result in an
accident (but did not) per million hours of work.

Lost-time injury frequency (“LTIF”) measures work-related
accidents resulting in lost time per million hours of work.
Employee LTIF was 2.2 (2022: 2.1).

› Contractor LTIF improved to 1.6 (2022: 2.0). Combined LTIF was
1.9 in 2023 (2022: 2.0) and thus in line with the previous year. ‹

Total recordable injury frequency (“TRIF”) is one of E.ON’s KPIs for
safety. It measures the number of recorded work-related injuries
and (acute) illnesses per million hours of work. E.ON has calculated
it since 2010 (employee TRIF) and included contractor employees’
in its safety performance since 2011 (combined TRIF).

Employee TRIF1

TRIF1

2023
2.77 

2022
2.90 

2021
2.60 

1TRIF measures the number of reported fatalities and occupational injuries and illnesses and also
includes injuries that occur during work-related travel that result in lost time or no lost time
and/or that lead to medical treatment, restricted work, or work at a substitute work station.

The TRIF for employees was 2.8 in 2023.

› Contractor TRIF of 2.0 was lower than in the prior year (2022:
2.3). Combined TRIF declined from 2.6 to 2.4 . All accidents were
carefully examined, both individually and in comparison. In some
cases, this enabled us to identify patterns or multiple predominant
causes and respond directly to them, for example, by means of
work groups. TRIF declined mainly because of fewer pandemic-
related restrictions and higher investments at some units, which
resulted in an increase in the number of construction sites and
thus in the number of working hours. ‹

► Near-miss frequency rate (“NMFR”) measures unplanned
incidents that had the potential to result in an accident (but did
not) per million hours of work. E.ON analyzes how and why near
misses happened and then puts in place controls to minimize or
eliminate similar risks in the future. We actively encourage
employees to report near misses so that we can continually
improve our safety performance. E.ON’s NMFR was 40 in
2023. ◄

Fatal Accidents at Work
Regrettably, one contractor employee died in 2023 due to an
occupational accident. He was an electrician who suffered severe
burns from an arc flash in a transformer station. Although first aid
was administered immediately and he received medical treatment
for three weeks, he ultimately died from his injuries. Each fatal
accident is thoroughly investigated so that we understand the
exact course of events that led to it. Identifying root causes
enables us to take the measures necessary to prevent similar
accidents in future. Nevertheless, serious and even fatal accidents
still occur. E.ON cannot and will not accept this. It has therefore
further intensified its efforts to prevent accidents. Examples are
the Company’s decision to extend the evaluation of HSE maturity
to all E.ON network operators and to make adjustments to the HSE
Strategy Roadmap 2021–2023, which place a greater emphasis
on risk and contractor management (see “Goals and Performance
Review” above).

Occupational Health and Safety at PreussenElektra
E.ON’s subsidiary PreussenElektra (“PEL”) is responsible for the
operation, decommissioning, and dismantling of the Company’s
nuclear power plants (“NPPs”). Its top priorities in all these
activities are the health and safety of employees—its own as well

as contractors’—and environmental protection. PEL is fully
integrated into E.ON’s safety organization and is subject to its high
standards. PEL’s extensive experience in plant operations and
decommissioning helps it continually optimize its HSE processes
and procedures and thus to minimize possible risks in conducting
its activities. Special focus actions, practical training sessions, and
health promotion measures foster and support the safe behavior of
PEL and contractor employees. Together, the systematic
application of safety standards, the conducting of various training
and awareness-raising measures (including for contractors), and
continual HSE advice directly at the work site again helped prevent
serious accidents in 2023.

Working Conditions and Employee Development

GRI 2-7, GRI 2-30, GRI 3-3, GRI 401, GRI 404, GRI 405

► E.ON’s vision is to provide everyone with good energy. More
than 72,000 employees worldwide (core workforce in FTE) are
working to make it happen. E.ON’s human resources (“HR”)
creates the conditions for all of them to make their contribution.
The HR function’s cornerstones, which are part of E.ON’s vision of
HR management, are: attracting great people, developing people,
creating a winning culture, and driving digital. They describe how
E.ON wants to be the employer of choice and to use innovative
formats to continually develop its talent. They also aim to establish
a culture of inclusion as well as the greater digitalization of HR
processes and the creation of a digital mindset. The HR vision thus
serves as the lodestar for HR work in the Group.

The medium-term HR objectives specify this overarching vision as
it is reflected in our Group People Strategy, or GPS@E.ON. This
strategy defines the four Group-wide People Priorities. These
priorities are the future of work, diversity and inclusion,
sustainability, and leadership. HR activities across the Group are
aligned with GPS@E.ON and must fundamentally contribute to the
People Priorities and their respective key ambitions. The strategy
is implemented through Group-wide and local activities. The entire

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implementation process is flexible and modular in order to reflect
differences between business units. ◄

launched in 2023, represents a central and innovative approach to
making giving feedback even easier and more efficient for
everyone (see “Specific Actions” below).

E.ON’s Approach 

GRI 2-30

A common culture, toward which the Company continually works,
is crucial for E.ON’s success. Our fundamental corporate values
guide employees’ actions and interactions with each other,
customers, and business partners. They answer the question of
what makes E.ON special, what is important to us, and what
principles guide our actions.

Grow@E.ON, E.ON’s Group-wide competency model, is derived
from E.ON’s values and is an integral part of GPS@E.ON. It defines
the specific behaviors to which the Company is committed.
Grow@E.ON is integrated into all HR-related processes and
describes how employees and managers should behave toward
each other and customers. Its purpose is to enable us to recruit the
right employees for the right positions, retain them, and foster
their ongoing development. Grow@E.ON provides guidance to
staff in their daily work and sets out a clear path for their personal
development and professional growth. It is designed to prepare the
Company for the continually evolving world of work, in which
agility, future-oriented skills, and greater individualization and
diversity are at the forefront. All new managers and employees are
informed about Grow@E.ON and trained accordingly.

A strong feedback culture is extremely important. Feedback helps
employees perform at a high level, to identify opportunities for
personal development, and to promote continuous improvement.
Such a feedback culture is firmly embedded in GPS@E.ON, E.ON’s
Group-wide HR strategy. E.ON offers its employees periodic
performance and development reviews. The Company also takes a
number of steps to foster a feedback culture, including offering
training, guidelines for feedback, and support on Connect, its in-
house social network. In addition, YourVoice@E.ON, which we

Guidelines and Policies
Our HR management model assigns the central HR function
(Group HR/Executive HR) responsibility for Group-wide HR tools
and processes as well as binding HR policies. These are defined in a
functional policy guideline, which also stipulates the associated
tasks. Executive HR, for example, is responsible for the complete
life-cycle management of E.ON’s top executives. Group HR is
responsible for a variety of Company-wide matters. These include
executive compensation including a job-grading system for
executive roles, the Grow@E.ON competency model, the employer
value proposition (“EVP”), Group-wide diversity targets, global
learning technologies and content, the International Assignment
Policy, the pension framework, and global HR IT governance.

E.ON has in place numerous policies and directives to make work
conditions more flexible. These include agreements for home
offices and rules on flexible work arrangements such as
sabbaticals, part-time work, and special leave. The principles
contained in these policies and directives are supported by our
codetermination committees and are binding for the entire E.ON
Group. The units implement them according to their respective
legal, cultural, and business circumstances.

The compensation principles for our employees are in many cases
stipulated by collective bargaining agreements, which cover 82
percent of employees. Whenever possible, E.ON offers permanent
employment, which applies to 94 percent of employees. We
provide fair pay that enables our employees to live a decent life.

Organization and Responsibilities
E.ON’s HR management is largely decentralized so that it is closer
to the business. In 2022 E.ON decided to fine-tune its HR
governance model so that topics of Group-wide strategic
significance—talent management/diversity and inclusion, learning

and development, EVP, and HR tech—are managed and
implemented more centrally. In this context, the Senior Vice
President Group HR/Executive HR and the HR leaders of the
individual units agree on annual targets.

An important central task of the HR function is HR management
for the Group’s top leadership positions. This includes the
identification of potential, staffing, succession planning and related
long-term talent management. The aim is to continually improve
the staff of leadership positions by, for example, having a
transparent recruitment process and thus ensuring equal
opportunity and diversity. We use overarching criteria and
common tools, such as local and global talent boards, to identify
talent and potential. Talent boards serve as a forum in which HR
and the specialist departments discuss employees with
development potential for management roles and their
development needs. Within this defined framework, units and
facilities can adjust processes to meet their specific needs and
challenges.

E.ON takes its employees’ interests very seriously and cooperates
closely with employee representatives. Almost all E.ON units and
Corporate Functions itself have works councils or other forms of
employee representation. We can build on the long-standing,
constructive, and trusting partnership with employee
representatives, especially in times of change; moreover, we
actively involve the workforce in all relevant upcoming changes.
Employee representatives are involved in employee-related issues
in a timely manner in accordance with the laws of individual
countries. In Germany this law is the Works Constitution Act. The
cooperation between E.ON and E.ON employee representatives is
characterized by respectful and open dialog. Early and open
exchange with employee representatives on employee-related
issues, which is a particularly important aspect of this proven
social partnership, is therefore enshrined in a declaration of
principles.

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Specific Actions

GRI 404-2

Flexible work arrangements have been part of E.ON’s corporate
culture for many years. In view of the Covid-19 pandemic, E.ON
established hybrid work as a Group-wide standard. We did this to
make working at E.ON even more attractive and to position our
Company as a modern employer in the future as well. Employees
at E.ON companies based in Germany can take a workation. The
aim is to give them additional options to make where they work
more flexible. In a workation, employees may—to the degree
operationally possible and in conformity with agreed-on
framework arrangements—temporarily perform their work from
an EU country other than the one of their contractual workplace.
The aim is to make working at E.ON even more flexible and to
respond even more individually to employees’ needs.

E.ON offers its employees benefits in addition to their contractual
compensation. In addition to the benefits of the Company pension
scheme or employer-financed accident insurance, E.ON supports
its employees in non-work-related situations or in special life
situations, such as when a family member falls ill. Employees in
Germany, for example, can take advantage of various services
provided or arranged by the Company. These services range from
stress and addiction counseling to support in caring for elderly or
sick relatives. Employees who fall ill for more than six weeks
within a 12-month period receive help with reintegration. In
granting these benefits no distinction is made between full-time
and part-time employment.

Training and development are very important for E.ON’s
attractiveness as an employer and pivotal for E.ON’s
transformation into a learning organization. All employees receive
training at their onboarding, HSE training, and functional training
relevant to their role, as well as soft-skills training and access to
talent and leadership development programs. These include many
digital, self-directed learning opportunities that employees can

access from anywhere at any time. In addition to Group-wide
training opportunities, the units have standardized digital learning
offerings. E.ON offers them for onboarding new employees and in
part for training strategically important topics like digitalization or
health and safety. To simplify their learning, employees can take
learning journeys on specific specialist topics. The journeys are
offered by the central HR function’s People Development team
and the central IT function’s Digital Empowerment team.
Currently, each department is conducting projects to develop
strategically important learning content. This involves identifying
critical skills and learning needs in line with E.ON’s strategy and
external market requirements. During the year under review, for
example, we identified which core competencies our employees
need in which areas to continue managing our digital
transformation. We will subsequently offer department-specific
learning opportunities so that we can develop the necessary skills
in-house. We are currently designing a new process for
competence and skills management. We want to use it to
automatically identify future-critical skills based on market trends;
the process will also draw on new digital functionalities to
continuously identify missing skills and learning needs for
specialist departments, managers, and employees. The basis for
this is an E.ON-wide standardized skill taxonomy. It is managed
centrally and continually refined in collaboration with specialist
departments.

E.ON believes that the most effective way for employees to learn
is through experience and practice. The Company adopts a 70-20-
10 learning approach: 70 percent of learning happens on the job,
20 percent through social interaction and knowledge sharing with
others, and 10 percent by means of programs such as eLearning,
seminars, and formal training. E.ON keeps up with the faster pace
of the digital age by increasingly replacing long formats with short
digital learning formats and self-directed learning. It is part of
employees’ workflow, it is tailored to their individual needs as
much as possible, and it is accessible anytime and anywhere.

In 2023 E.ON established a one-stop shop for all learning content
in order to make learning opportunities for employees even more
attractive and easier. This digital platform will combine all E.ON-
wide learning opportunities in a single place and improve user-
friendliness. In addition, E.ON drew up a catalog of learning and
development measures by the end of 2022 in order to achieve the
goal of becoming a learning organization in the coming years. It
ensures a Group-wide, new framework for learning and employee
development and was introduced in all units with initial measures
in 2023. In the coming years, this will be accompanied by an
ongoing internal communication campaign, such as the three-
week Learning Weeks in September 2023 and a Fail and Learn
video series with managers. The Learning Weeks took place
throughout the Group as an online format. In this context, 72
events were held and over 9,000 employees took part.

E.ON helps people launch their careers by offering apprenticeships
for various vocations as well as internships, working student
activities, and other programs. Our offerings in Germany include
local initiatives to help interested people start their careers with
the help of school projects, internships, courses, and expert
guidance. We also employ working students who can gain work
experience at E.ON and simultaneously finance their education. In
2022 we also launched a new, Group-wide E.ON International
Graduate Program (“EIGP”) to develop next-generation talent
personally and professionally and to retain them at E.ON. Cross-
functional, national, and international assignments enable
participants to get to know our business and network Group-wide.
We support them with mentoring, coaching, and training. The
trainees also work on a joint business project. In 2023 the project
involved having trainees conduct a survey to ascertain employees’
attitudes towards E.ON’s sustainability culture and thus provide
important impetus for its evolution.

In 2023 the EIGP was expanded to include specialist tracks for
Customer Solutions, Digital, Finance, and Energy Networks.
Entrants in 2023 consisted of 22 university graduates of nine
different nationalities. Of these, 14 are in the generalist track and 8

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in the specialist track. A total of 37 participants are currently
completing the EIGP.

Goals and Performance Review
We support our predominantly decentralized HR organization on
issues of Group-wide significance or Group-wide value
propositions. This includes setting central targets for topics with a
Group-wide value proposition. The HR Board-which consists of the
Senior Vice President (“SVP”) Group HR and representatives of the
local HR organizations—defines, prioritizes, and decides on the
specific annual HR targets for the implementation of Group-wide
value propositions and their measurement criteria. The targets will
be reviewed periodically based on the previously defined
measurement criteria.

E.ON wants to retain its people (and their expertise) and enable
them to grow professionally. One of E.ON’s objectives is therefore
also to fill management positions internally. At talent boards,
E.ON’s HR representatives use a special tool to assess how many
candidates have participated in an application process and who
ultimately filled a vacant position. It also enables E.ON to monitor
whether selected candidates come from its own development pool
and whether they meet its diversity targets. E.ON’s talent boards
not only focus on identifying talent and planning succession, but,
since 2021, also on diversity aspects. The objective is in part to
increase the proportion of women and employees from
underrepresented groups among managers. That is why, since
2020, E.ON has been strengthening its commitment and has made
diversity a People Priority in GPS@E.ON, its HR strategy. Our
talent strategy in 2023 focused on a more inclusive and flexible
approach in order to enhance diversity in talent management as
well. To support this, we piloted a smart digital platform called My
Career Hub in 2023 as well. The platform suggests opportunities
to employees that match their skills, interests, and ambitions.
Examples include suitable jobs, mentoring opportunities, and
project assignments.

E.ON has conducted an annual employee survey since 2014 to find
out how its people feel about their job, their supervisor, the work
atmosphere in their unit, and other topics. The periodic finetuning
of our survey approaches led to the decision to implement a
Group-wide employee engagement strategy (YourVoice@E.ON) in
2023. Engagement takes into account a large number of different
factors that together contribute to an engagement score. A high
score, for example, indicates a high level of employee well-being
and a lower risk of fluctuation. A characteristic feature of the new
strategy is that employee feedback is recorded and evaluated more
regularly. This will enable organizational units such as
departments and individual teams to identify engagement issues
swiftly and independently, to discuss them as a team, and to have
the opportunity to initiate improvements together. Following the
gradual implementation of YourVoice@E.ON, it will be the central
approach to employee surveys in the E.ON Group, supplemented
only selectively by specific, concise surveys on certain topics.

The centerpiece of the new YourVoice@E.ON approach is a
technology platform that, at certain intervals, emails employees
questions that address aspects of well-being and the current work
situation. Answering the questions is anonymous and voluntary
and can be integrated into everyday work with little effort.
Managers can access the findings of this ongoing feedback on
their dashboards at any time, react to individual aspects or trends,
and work with their teams on improvements. This makes
YourVoice@E.ON more than a traditional employee survey and
supports our feedback culture.

› We conducted our periodic survey of Employee Net Promoter
Score (“eNPS”) in 2023 as well. eNPS measures employees’
willingness to recommend E.ON as an employer. In the 2023
survey, eNPS improved by eight points (+36). ‹

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→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Progress and Measures

GRI 2-7

Employees: Core Workforce1
FTE
Energy Networks
Customer Solutions
Corporate Functions/Other
E.ON Group

2023
39,456
26,849
5,937
72,242

2022
38,542
25,046
5,790
69,378

2021
38,032
26,067
5,634
69,733

1Core workforce includes board members and managing directors but excludes apprentices, interns,
and working students.

At year-end 2023, the E.ON Group’s core workforce had
72,242 employees. This figure includes part-time positions on a
pro rata basis. The number of employees increased—by 2,864
FTEs, or 4 percent—in 2023. The proportion of employees working
outside Germany (34,715 FTEs) decreased slightly to 48 percent
compared with year-end 2022 (49 percent).

The number of employees at Energy Networks increased. This was
mainly attributable to the implementation of our growth strategy,
associated network expansion, network modernization and
digitalization. The deconsolidation of the VSEH Group in Slovakia
had a countervailing effect.

Customer Solutions’ core workforce increased as well. This was
mainly due to capacity expansion to meet increased customer
requirements and to roll out smart energy meters in the United
Kingdom. There was also significantly more growth-driven new
hiring in most of the other countries, in particular the Netherlands,
Germany, and Hungary. The deconsolidation of the VSEH Group in
Slovakia had a countervailing effect at Customer Solutions as well.

Core Workforce by Country1

The number of employees at Corporate Functions/Other rose year
on year as well, mainly because of hiring and incourcing of
digitalization and IT support capabilities. By contrast, the number
of employees at PreussenElektra declined owing to the
dismantling of its nuclear power plants.

Germany
United Kingdom
Romania
Hungary
Czech Republic
The Netherlands
Sweden
Poland
Slovakia2
Other
E.ON Group
1 Core workforce includes board members and managing directors but excludes apprentices, interns, and working students.
2 The company VSEH operating in Slovakia was deconsolidated in the end of 2023.

Headcount

FTE
Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022
35,194
8,437
6,759
5,726
3,178
2,666
2,414
1,861
1,578
1,565
69,378

37,526
9,420
6,861
6,009
3,250
3,075
2,580
1,879
–
1,642
72,242

38,945
9,742
7,028
6,035
3,271
3,438
2,607
1,890
–
1,662
74,618

36,549
8,769
6,916
5,745
3,201
2,955
2,432
1,873
1,589
1,584
71,613

E.ON Integrated Annual Report 2023

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→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Apprentices in Germany

Energy Networks
Customer Solutions
Corporate Functions/Other
E.ON Group

2023
2,208
72
85
2,365

2022
2,037
67
109
2,213

Headcount
2021
2,064
65
179
2,308

2023
7.3
1.1
1.6
5.6

Percentages
2021
7.4
1.0
3.4
5.8

2022
7.2
1.1
2.1
5.6

At year-end 2023, the average age of E.ON employees was 42, as
in the previous year. This is comparable with the average age at
other DAX 40 companies. The age distribution of E.ON’s workforce
reflects the demographic trend of working-age people. In 2023
around 22 percent of our employees were under the age of 31,
49 percent between 31 and 50, and around 29 percent older than
50.

At the end of the year, E.ON had a total of 2,365 apprentices in
Germany. This corresponds to an apprenticeship ratio of
5.6 percent. Of the 587 apprentices who completed their training
in 2023, 538 were given a permanent or temporary employment
contract. This is a very high takeover rate of 92 percent (2022:
553 of 598, or 93 percent). A consistently high takeover rate of
apprentices is one of the ways E.ON is actively addressing the
shortage of skilled workers.

Workforce Age Distribution

New Employee Hires and Turnover Rate

GRI 405-1

GRI 401-1

E.ON hired 11,308 new employees in the year under review. This
too reflects the systematic implementation of our strategy
focusing on growth, sustainability, and digitalization. The voluntary
turnover rate in 2023 was 4.6 percent (2022: 6.1).

Customer Satisfaction 

GRI 3-3

Customers of all types—households and businesses, cities and
government entities—understand that a digital and decarbonized
future means that they will not only consume, but also
increasingly make and store their own clean energy. These
customers are extremely knowledgeable and discerning. They
expect E.ON not only to listen to and anticipate their needs, but
also to design innovative and sustainable energy solutions, deliver
best-in-class services, and provide a consistently good customer
experience. Earning and retaining their trust and loyalty is very
significant for us to sustainably grow our business. Loyal
customers tend to stay with us longer, to purchase additional
products and services, and to recommend us to their family and
friends.

2023, too, was a difficult year for our customers: energy prices
remained at a high level, which was only partially mitigated by
government subsidy programs. In some markets E.ON was the

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first supplier to lower its prices below the government-mandated
price cap, such as in the Czech Republic. E.ON companies made
customers aware of support opportunities by including
information about alternative tariffs and government subsidy
programs in their bills. In addition, customers could use special
apps and other tools to better understand their electricity
consumption and ways to conserve energy.

E.ON’s Approach
E.ON continually measures and improves the experience we offer
to our customers, in order to retain—and, ideally, deepen—their
loyalty. It is essential for us to be systematically customer-centric.
The E.ON brand promises to give our customers what they want in
the future energy world: consistently positive experiences with our
services and smart, sustainable solutions. E.ON transports energy
from where it is produced to where it is needed. We also work to
empower people, companies, and cities across Europe to create
the sustainable world that they want to live in. The purpose is to
build energy communities in which everyone can do their part and
meet these needs—from a household opting for green electricity to
an entire city committing to sustainability. Delivering on this
promise will make the E.ON brand distinctive and enable us to
successfully expand our business. E.ON’s objective is to become
the number one energy-solutions company in all of its markets and
thus to live up to its ambition of being the leading company of the
energy transition.

In 2023 E.ON revised its market positioning to underscore its
leading role in the energy transition. As part of this process, we
surveyed customers and consumers about what characteristics
they think such a company should have. They told us that it should
have the necessary size and market strength and above all

technical innovativeness and a vision of the future energy world.
All this was accompanied by a desire for reliability and stability.

Organization and Responsibilities
The Chief Executive Officer (“CEO”) coordinates, from Corporate
Functions, our brand and marketing strategy with the aim of
further developing and strengthening the E.ON brand. The Chief
Operating Office—Commercial (“COO—C”) supports the sales and
energy solutions business for all customer segments and in all
E.ON markets. The regional units’ Customer Experience teams are
responsible for customer satisfaction. They carry out projects and
measures in their respective sales territories and exchange
information on successful approaches and progress on a monthly
basis. There are Customer Experience teams in Germany, the
United Kingdom, Italy, Romania, Sweden, the Czech Republic,
Hungary, Poland, and the Netherlands.

E.ON’s Global Customer Leadership team, which consists of senior
Customer Experience leaders from the entire Group and
representatives from the Customer and Market Insights team,
successfully continued its work in 2023. Its purpose is to listen to
customers more and foster customer centricity in all E.ON
markets. The team met four times in the year under review to
assess Customer Experience activities, identify areas of focus for
cross-regional collaboration, and give customers a stronger voice.

The Customer and Market Insights team studies which trends
shape our customers’ attitudes and behaviors. It conducts
consumer studies, broad-based market research, and advanced
data analyses and models possible scenarios. The aim is to obtain
practical knowledge and incorporate it into business processes.

Specific Actions
E.ON measures the loyalty and trust of its existing and potential
customers by means of Net Promoter Score (“NPS”), which was
introduced in 2009 and became a Group-wide program in 2013.
NPS indicates customers’ willingness to recommend E.ON and its
services. It also helps us identify which issues are currently of
particular importance to customers and thus to adapt our activities
to current customer needs. E.ON measures two types of NPS:

• Strategic NPS compares E.ON’s performance with that of its

competitors and is based on the feedback of customers
regardless of whether they have had any interaction with E.ON.

• Journey NPS measures the loyalty of current and potential

customers who have completed one or more interactions1 with
E.ON – for example, if E.ON helped them transferring their
energy service to their new residence when they move.

NPS is used by our regional units in Germany, the United Kingdom,
Italy, Romania, Sweden, the Czech Republic, Hungary, Poland, and
the Netherlands.

A methodology introduced in 2017 enables us to measure
strategic NPS consistently across all markets and thus to identify
and resolve customer issues experienced in multiple markets. It
also makes it easier for us to recognize the areas in which useful
innovations can be offered to customers. The methodology is
based on an automated reporting process. It therefore avoids the
errors of manual data entry and improves data quality and
auditability.

1 This can involve multiple interactions within a process such as a move, or multiple contacts
from an existing or potential customer with the same request, for example via the chatbot.

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The Customer Insights team produced a Journey Measurement
Handbook to provide greater support to our regional companies in
measuring NPS for different customer concerns.

Goals and Performance Review
Every year, E.ON sets company-wide targets for strategic and
journey NPS. E.ON uses both indicators at the segment and unit
level for purposes of management control. Strategic NPS is highly
relevant for management control because of the information it
provides about competitors. The E.ON Management Board has
received a monthly NPS report since September 2020. In addition,
periodic market reports enable the Chief Operating Officer—
Commercial and the CEOs of the regional units to exchange views
on NPS issues and customer topics. NPS also plays a role in
executives’ variable compensation. This consists of two
components: one factor reflects an executive’s individual
performance, the other the company performance. Progress in
strategic and journey NPS has accounted for 20 percent of the
calculation of the company performance since 2020. The
achievement of NPS targets is also factored into determining the
E.ON Management Board’s compensation.

In 2023, which operational journey NPS data must be measured
by all regions was defined centrally for the first time. From
January 2024 onward, these are the data on complaint
management and the payment process. The regions completed a
self-assessment in order to have a uniform basis for data
collection. Baseline measurement began in the fourth quarter of
2023.

Since 2017, each unit has also established its own measures to
systematically improve customer perception. These activities are
initiated and overseen by the units’ CEO and board members
because they are personally responsible for their unit’s NPS
performance. They review the measures annually and readjust
them. They increasingly include sustainability criteria. The
measures’ duration can cover several years, depending on the
scope of the planned adjustments.

Security of Supply 

GRI 2-6, GRI 3-3, GRI G4 Sector Disclosures Electric Utilities

E.ON’s objective as an energy company and distribution system
operator is to ensure a secure supply of electricity to its customers.
A reliable electricity supply is essential for industrialized countries
to be able to maintain their economy and meet their inhabitants’
basic needs. For example, industrial customers that operate high-
precision production facilities require a constant network
frequency. If frequency fluctuates, machinery can break down,
resulting in additional costs. A complete interruption of the
electricity supply can have serious consequences, and not just for
industrial customers. At companies, government agencies, and
households, most processes are no longer possible without
electricity. One challenge in power supply is that energy is
increasingly being generated decentrally and consequently fed into
the E.ON network from many different points. Moreover,
renewables feed-in fluctuates because it depends on the weather
and other factors beyond E.ON’s control.

E.ON’s Approach
E.ON wants to operate secure and stable networks in a future
energy world as well and thus offer its customers a reliable
electricity supply at reasonable costs. That is why E.ON is
upgrading to smart grids by equipping networks with sensors and
control technology, increasing the level of automation, and adding
a digital layer. This will enable us to manage energy flows in line
with demand and to monitor our grids in real time and with much
greater granularity than today. Additionally, as is described in
greater detail below under “Specific Actions,” smart-grid
technology makes it possible for us to partially avoid or delay some
grid expansion.

Going forward, smart grids will serve as the platform for the
innovative technologies and new business models that contribute
to the energy transition’s success. Examples include:

• Flexible tariff models that use price incentives to influence

demand and thus help stabilize networks

• The aggregation of multiple distributed power generating units
into virtual power plants that respond dynamically to changes in
consumption

• Peer-to-peer sharing solutions, such as for households and

businesses

• Fluctuation-tolerant local energy systems that have battery, gas,

or heat storage devices and their own generating units

We continued the E.ON Lab in 2023 to study more potential
innovations. In Arnsberg/Sundern and Lüneburg, Germany, E.ON is
testing the extent to which various aspects of a future energy
world are feasible, useful, and scalable. E.ON is expanding its
digital equipment in these communities and assessing the value
that such smart solutions add for customers and networks. We are
also exploring whether and how current energy-market regulation
can better reflect customer needs. E.ON’s smart solutions promote
secure and efficient network operation. This gives us a transparent
view of the operating status of network equipment and energy
flows and enables us to make targeted use of the flexibility
available in our networks.

Guidelines and Policies
In 2021 E.ON adopted a strategy for deploying more smart
technology (smartification) in its low- and medium-voltage grids.
The strategy applies in Germany and all other countries in Europe
where the Company operates. E.ON’s smart-tech deployment
targets vary by country but generally far exceed those set by each
country’s regulatory agency. We monitor progress using key
performance indicators (“KPIs”) on a regular basis.

Organization and Responsibilities
E.ON’s regional network companies are responsible for the safe
and reliable operation of its distribution networks. Network control

E.ON Integrated Annual Report 2023

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→ Forecast Report

→ Risks and Chances Report

Goals and Performance Review
E.ON’s regional network companies record all planned and
unplanned service interruptions in their distribution networks. The
data collected are aggregated into the system average interruption
duration index (“SAIDI”) for electricity. It indicates the average
interruption duration per customer and year.

E.ON reports the SAIDI of its fully consolidated network
companies by country. The figures for Germany reflect the
weighted average of its fully consolidated network companies

there. They are calculated using the method prescribed by the
Federal Network Agency (known by its German acronym,
“BNetzA”). The calculations are based on service interruptions that
have been verified by the BNetzA. All other countries in which
E.ON operates networks have similar quality standards. Their
national regulatory agencies verify and validate network operators’
outage reports. The SAIDI figures for each country therefore
reflect the methodology prescribed by its regulatory agency. These
key figures are generally reported without interruptions due to
force majeure; exceptions are indicated accordingly.

SAIDI Power1 G4-EU29

2023

2022

2021

Minutes per
customer

Germany

Sweden2, 3

Hungary

Czech Republic2

Romania
Poland3

Scheduled Unscheduled

Total

Scheduled Unscheduled

Total

Scheduled Unscheduled

Total

154

254

123

156

151

253

331

144

293

308

121

141

451

382

117

134

297

259

116

175

181

556

1Totals may deviate due to rounding.
2Including influence of force majeure.
3Increase in 2023 (2022 data) due to several days of extreme weather conditions and storms.

centers manage network operations. They are also responsible for
resolving unforeseeable outages in their service territory. E.ON’s
crisis management system defines the responsibilities and
procedures for dealing with widespread disruptions. The Incident
and Crisis Management policy provides guidelines for such
situations. The Chief Operating Officer–Networks (“COO–N”)
oversees the Energy Networks segment. Under his leadership,
three departments (Energy Networks Europe, Energy Networks
Germany, and Energy Networks Technology & Innovation) at
Corporate Functions manage the segment’s regional units. These
departments’ tasks include strategic development, investment
planning, and asset management.

Specific Actions
E.ON has investment and maintenance programs under which it
expands and maintains its networks in line with demand. E.ON will
invest €33 billion from 2023 to 2027, of which €26 billion will go
toward network expansion. This is intended to enable us to ensure
that all our network customers are connected to the network and
receive a reliable energy supply. Our regional network companies
are responsible for carrying out the measures, which are planned
for one or more years. E.ON invested about €5.2 billion in network
expansion in 2023. Part of the investment budget went toward the
gradual expansion of smart grids: E.ON’s network structure is
being progressively equipped with sensors, control and relay
technology, as well as being automated and digitally networked.
The increasing use of smart-grid technology makes it possible to
avoid or delay costly investments in network expansion, for
example, by using new technology to making better use of existing
overhead lines. Investment decisions always consider the
efficiency of each measure alongside security of supply. This
means that E.ON chooses those solutions that make the most
sense from both a technical and business standpoint. This is
because network investments also affect network fees, which
account for a portion of the electricity price paid by customers.

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SAIFI Power1 G4-EU28 

2023

Scheduled Unscheduled
0.32
1.20
0.79
1.18
0.98
0.91

Interruptions per
customer
Germany
Sweden3, 4
Hungary
Czech Republic3, 5
Romania5
Poland4
1Totals may deviate due to rounding.
2Previous year's figures adjusted due to harmonization of definitions (consistency with SAIDI)
3Including influence of force majeure
4Increase in 2023 (2022 data) due to several days of extreme weather conditions and storms

Total
0.41
1.67
1.12
1.77
1.80
1.05

0.08
0.47
0.33
0.59
0.82
0.14

Scheduled2
0.09
0.36
0.33
0.54
0.94
0.14

Un-

scheduled2
0.31
1.11
0.78
1.46
1.23
0.70

2022

Total2
0.40
1.47
1.10
1.99
2.17
0.84

Scheduled2
0.08
0.19
0.41
0.49
0.95
0.12

Un-

scheduled2
0.31
0.91
0.83
0.60
2.69
0.59

2021

Total2
0.39
1.10
1.24
1.10
3.64
0.71

› Our network companies also calculate the system average
interruption frequency index (“SAIFI”). This measures the average
number of interruptions per customer and year. The data collection
process for SAIFI is the same as for SAIDI. ‹

By the end of the data collection period in 2023, no regulatory
agency had completed the process of validating outages for 2023.
This report is intended to contain final figures on the continuity of
supply that have been officially validated. Consequently, the
country-specific figures for the prior year are disclosed below.

Although E.ON does not use SAIDI and SAIFI for management
control purposes, these figures provide important information on
network service quality. At regular intervals, our network
operators inform the E.ON Management Board member
responsible for network operations about their supply reliability.

The following presentation of key figures on service quality
considers different causes when classifying disruption-related
interruptions in individual countries because their respective
national regulatory agencies use different methodologies. These
key figures are generally reported without interruptions due to
force majeure; any exceptions are indicated.

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→ Forecast Report

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Progress and Measures 
The table below provides information on our system lengths
through the end of 2023.

System Length at Year-end

Thousand kilometers
Germany1
Sweden
Hungary
Czech Republic
Romania
Slovakia
Poland
Croatia2, 3
Total
1Figures for Germany are for the respective previous year: 2023 for 2022, 2022 for 2021, and so forth.
2Gas grids only.
3Gas grid Croatia reported for the first time in 2023.

2023
694
142
85
67
80
23
19
–
1,110

2022
691
141
84
67
83
23
18
–
1,107

Power
2021
700
140
84
67
83
23
18
–
1,115

2023
99
0
18
5
26
0
0
2
147

2022
98
0
18
5
25
0
0
0
146

Gas
2021
101
0
18
5
24
0
0
0
148

Community Involvement 

GRI 3-3

E.ON’s Approach
E.ON is part of the countries and communities where it does
business. We therefore feel obliged to make a contribution to their
prosperity, economic development, sustainability, and quality of
life. We do this primarily by creating jobs and by offering energy
solutions that enhance our customers’ sustainability and comfort.
In addition, E.ON engages in community involvement and supports
employee volunteering in all regions where it operates.

Our unit representatives know their country’s needs and
challenges best. So E.ON lets them decide which projects and
organizations to support. We believe that local decision-making is
more suitable than central directives for giving our community
involvement activities a societal impact.

In order to better coordinate Group-wide and regional activities as
well as the commitment of the E.ON Foundation and to increase its
social impact, we have bundled E.ON SE’s and the E.ON
Foundation’s activities and linked them more closely. In this way,
we want to ensure that responsibility for content coordination,
decisions on projects, and process design lies in one hand.

Our Community Investments
E.ON reports its corporate giving by the categories below.

Alongside corporate giving, E.ON makes strategic investments in
community involvement, which are typically more long-term in
nature. In 2023 the financial resources for sponsorships went
toward three focus areas: climate protection, access to energy, and
support for the next generation.

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E.ON’s corporate giving and strategic community involvement
totaled more than €22 million in 2023 (prior year: €18 million).

oral, written, and digital form—is crucial in order to prevent
damage to E.ON competitive position, brand, and reputation.

E.ON Foundation
The E.ON Foundation aims to promote a sustainable
transformation of the energy system that reflects people and their
social practices. Guided by the conviction that a purely
government-mandated, over-regulated energy transition will not
succeed, it supports projects, events, and practical formats relating
to energy and society. In 2023 the foundation made about € 1.1
million in donations and provided more than € 1.9 million in
funding to the projects it supports. Because the foundation is
independent, this funding is not included in E.ON’s community
investments.

Corporate Volunteering
In 2023 employees were again actively involved in non-profit
projects in all regions in which E.ON operates. In total, 3 672 E.ON
employees performed 22 129 hours of volunteer work in 2023.
This figure may include double counting of employees who
volunteer more than once.

Data Protection,
Cybersecurity, and Product Safety 

GRI 3-3, GRI 418

E.ON processes personal data of a variety of stakeholders,
primarily customers, employees, enterprise partners, and
suppliers. We have a Group-wide data protection organization,
which we continually improve. E.ON evaluates its processing
activities on an ongoing basis in order to comply with applicable
regulations and to protect data subjects’ rights and personal data.
In addition, E.ON has a broad-based cybersecurity organization
whose aim is to efficiently protect systems and data regardless of
where they are accessed from, which devices are used, and where
the data are processed. Safeguarding all company information—in

E.ON offers its customers digital solutions (like the E.ON Home
app and the E.ON Drive app) as well as a steadily expanding range
of products installed at their premises. This includes solar and
battery storage systems, heating systems (including heat pumps
and boilers), and electric vehicle charging points. Ensuring that
these products are safe is essential for E.ON to protect its
customers’ health, retain their trust, and continue to serve them
successfully.

E.ON’s Approach
E.ON takes compliance with the General Data Protection
Regulation (“GDPR”) and national regulations seriously and aims to
protect natural persons—above all customers, employees,
suppliers, and other third parties—when processing their personal
data. In principle, all natural persons may themselves determine
the extent to which their personal data are processed. E.ON
Group’s Data Protection Management System (“DPMS”), which is
based on IDW PS 980, an audit standard for compliance
management systems, describes the minimum standards for data
protection within the E.ON Group. The DPMS is implemented by
the individual units and, at the same time, serves to ensure a
structured, coordinated, and consistent approach to data
protection. The DSMS was extensively reviewed in 2023. In
addition, E.ON studied major data breach cases of other companies
that became public and used these insights to further improve its
own data protection and IT security measures and to harden its IT
infrastructure.

In 2022 E.ON revised its data protection contracts, in particular EU
model clauses, and other documents relevant to data protection.
Among other things, E.ON focused on implementing and updating
contracts for third-country transfers and assessments of the level
of protection in third countries (transfer impact assessment). Data
protection is an ongoing task amid rapidly evolving technologies
and practices. Using the plan-do-check-act (“PDCA”) method

enables E.ON to continually improve these processes (for more
information, see “Goals and Performance Review” below). These
activities continued in 2023.

To protect all company information, E.ON has in place an
Information Security Management System (“ISMS”) based on the
standards of the ISO 2700x series, widely recognized international
standards for information security. The ISMS is certified for those
parts of the organization where it is required by law. E.ON works
to ensure and maintain the confidentiality, availability, and
integrity of its information resources. This includes monitoring
infrastructure, vulnerabilities, and threats as well as detecting and
responding to security events like cyberattacks. For this purpose,
in-house and outside experts conducted extensive security tests of
the systems on a regular basis. In 2023 E.ON again updated its
cybersecurity strategy and designed a roadmap for implementing
it. Items on the roadmap include improving security awareness,
identity and access management, cloud security, and new
detection and prevention capabilities.

E.ON extend its high standards for occupational health and safety
to the products it offers customers. The Company sets uniform
standards to ensure that its products are safe throughout their life
cycle, from development to recycling. Our ambition is to comply
fully with all existing laws and regulations. This applies likewise to
applicable safety laws and regulations. If, in the case of innovative
products, current laws and regulations lag behind the state of the
art, E.ON meets more stringent safety standards. Due to
confidentiality constraints and the sensitivity of such data, E.ON
cannot provide information about complaints concerning data
breaches, regardless of whether these complaints were
substantiated or not.

Guidelines and Policies
E.ON’s Data Protection Policy defines roles and responsibilities in a
uniform manner across the whole Group. The information security
standards introduced in 2018, which are based on the ISO 2700x
series of standards, apply to the entire Group as well. They enable

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

E.ON employees to design and operate new solutions with the
required level of cybersecurity and to protect technology, data as
well as customers, critical infrastructure, and society from
negative consequences. E.ON’s People Guideline “Cybersecurity”
summarizes the most important cybersecurity rules relevant for all
employees.

Organization and Responsibilities
Each unit in the Group is responsible for complying with data
protection regulations, above all the GDPR, and implementing the
DPMS. E.ON has established processes across the Group to
comply with data protection requirements, for example to respond
to data subject inquiries and report data protection breaches. This
set of processes also provides guidance when individual units
implement the necessary processes.

The units are responsible for responding to all requests from data
subjects, such as access to information on data processing,
rectification, deletion, and data portability. The units’ systems and
policies must also comply with their national data protection
regulations and those of any other countries where they operate.
Where required by law, the units have appointed Data Protection
Officers (“DPOs”). The units’ DPOs work closely together and
report regularly to the Group DPO, in particular on information
relating to legal and regulatory developments and fines, the
protection of data subjects’ rights, relations to third parties,
fulfilment of documentation duties, and correspondence with
supervisory authorities.

E.ON’s Group DPO is responsible for higher-level data protection
issues at the Group level. In addition, the units’ DPOs and
employees are informed on a regular basis about relevant
developments relating to data protection by means of periodic
information-sharing meetings between the Group DPO and the
units’ DPOs. This and other information is disseminated by email
and through internal communications channels, such as the
corporate intranet. Furthermore, the Group DPO reports
periodically to the Cybersecurity and Data Protection Council,

which also includes Management Board members, and to the
Supervisory Board’s Audit and Risk Committee.

annually. By the end of 2023, 82 percent of employees completed
the module.

The Cybersecurity function prevents the danger that technology
and information from having an adverse impact on E.ON’s
business and customers. Its tasks include designing a Group-wide
cybersecurity strategy, monitoring its implementation, and
coordinating the cybersecurity organization across E.ON. E.ON’s
Chief Information Security Officer (“CISO”) oversees the Group-
wide cybersecurity organization and assigned to the Management
Board’s digital remit. His responsibilities include formulating
E.ON’s cybersecurity strategy and monitoring its implementation.
The Group-wide cybersecurity organization includes Information
Security Officers (“ISOs”) appointed by the business units. They
report to the CISO as well as to their unit’s board on all relevant
matters arising in their organizations. The CISO reports on a
regular basis—as well as ad hoc in the event of serious security
incidents—to the E.ON SE Management Board and the Supervisory
Board. These vertical and horizontal reporting pathways ensure
transparent and consistent reporting.

E.ON’s regional units know their customers, their products, and
the local market conditions and requirements. Consequently, their
Product Development teams take the lead in product safety,
supported by their unit’s Health, Safety, and Environment (“HSE”)
department. They also work closely with several divisions and
departments at Corporate Functions, primarily B2C/B2SME
Solution Management, Innovation, HSE, and Sustainability. In
addition, B2C has its own product safety and compliance team.

Specific Actions
All new E.ON Group employees receive data protection training
during their first year as part of their onboarding process. In
addition, E.ON conducts specific training for entities and
departments—such as call centers and sales organizations—that
process personal data on a bigger scale. Employees use an
eLearning module to familiarize themselves with the GDPR’s rules

E.ON uses training, phishing simulations, and in-house workshops
such as live hacking demonstrations to familiarize its employees
with cybersecurity risks and their obligation to keep confidential
company information secure. To enable its employees to handle
information properly, E.ON uses a classification tool, including
electronic document labelling, which was introduced in 2022.
E.ON conducts an ongoing phishing awareness campaign that
involves simulated phishing emails sent to employees several
times a month. In addition, E.ON periodically performs
penetration-testing for crucial services in order to further harden
key services against cyberattacks.

E.ON takes a variety of steps to address health and safety issues
across the entire life cycle of its products. During product
development, E.ON closely observes current standards and
guidelines and monitors emerging issues. The regional units test all
market-ready products, including eMobility solutions, for
CE/UKCA conformity in their own test labs or have them tested in
E.ON’s test lab in Essen or by outside testing firms. Products that
are CE-compliant meet EU-wide requirements for safety, health,
and environmental protection, while UKCA-compliant products
meet the British market’s compliance requirements. This provides
E.ON with a comprehensive assessment of risks, their likelihood,
and other potential implications. Contractors who install and
maintain products on E.ON’s behalf must undergo prequalification
prior to hiring to ensure that they meet specific standards and
values. In addition, E.ON engages in ongoing dialogue with its
contractors and trains them to ensure that they adhere to all
requirements and the latest technical standards. Safety training,
for example, is mandatory for all installers of solar and battery
solutions in Germany. If a product has a safety-related issue, E.ON
needs to be able to recall it immediately. E.ON therefore checks
and tracks all hardware product changes so that it can contact
customers immediately in the event of safety-related issue. We
work to continually improve these processes.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

Whenever E.ON is the product manufacturer or deemed to be
such, the Company is legally obliged to comply with a number of
requirements. These include establishing a system to ensure
product traceability and putting in place a plan for corrective
measures. Other requirements include product certification,
CE/UKCA labeling, the issuance of E.ON’s own EU/UKCA
Declaration of Conformity, and the creation and maintenance of a
product’s full technical documentation. In the event of safety-
related issues, E.ON immediately informs the appropriate market
surveillance agency about the issue and the intended corrective
measures, such as withdrawal, warning, and recall. E.ON is also
obligated to take necessary corrective actions.

Goals and Performance Review
The recurring PDCA cycle results in the DPMS’s processes being
continually planned, implemented, managed, and improved. This
enables E.ON to permanently monitor the DPMS’s effectiveness,
proactively and repeatedly look for potential blind spots, and take
action if the need for improvement arises. E.ON units report on the
status quo of their compliance with the GDPR on a quarterly basis.
The review also includes regular assessments by Group Audit. The
units implement Group Audit’s recommendations in a timely
manner. Where it was possible to conclude ongoing proceedings
with data protection agencies, this was done without sanctions.
The existing DPMS is therefore effective and robust.

E.ON assesses the maturity of its ISMS domains regularly and
reports the findings to the Cyber Security and Data Protection
Council on a quarterly basis. E.ON defined a minimum maturity
level for all areas and units. If deficiencies or improvement
potential are identified, E.ON adjusts its cybersecurity roadmaps
accordingly.

Product safety incidents are documented at the unit whose
product was involved and at the Group level. The investigation and
analysis of such incidents help us identify their causes and
determine how to prevent them in future. E.ON shares the insights
gained in this process with all relevant departments.

Business Resilience Management 

GRI 3-3

The health, safety, and security of employees and customers,
environmental protection, and the reliability of the energy supply
are particularly important to E.ON. We work continually to ensure
the safety, security, and reliability of our infrastructure and
customer solutions and to become even more resilient to
operational interruptions and disruptions. If a crisis occurs despite
comprehensive precautions, E.ON responds swiftly and handles
the situation professionally.

The impact of the war in Ukraine in particular continued to present
a challenge in 2023. As in the prior year, we faced, among other
things, a potential energy shortage and an overall increased threat
to energy infrastructure.

E.ON’s Approach
E.ON has a comprehensive framework in place consisting of
various minimum requirements for the purpose of conducting
business resilience management. It addresses physical security
issues and includes specifications for implementing crisis and
business continuity management. Nevertheless, the Company
cannot rule out the possibility of crises caused by, for example, a
natural disaster, human or technical failure, a cyberattack, or
another security-related incident, or a corresponding event. That is
why integrated business continuity management encompasses,
for example, elaborate contingency plans. They specify both
organizational and operational measures to enable a fast, efficient,
and predefined response and the continued operation of critical
activities. In the event of a crisis, E.ON has a Group-wide crisis
organization with several highly specialized crisis management
teams that are organized locally and centrally; they conduct
exercises on a regular basis in order to be able to respond quickly
to critical events. E.ON prepares thoroughly to respond to such
exceptional situations in the best possible way and prevent
escalation and acts quickly and purposefully at the first signs. The

main objective of crisis prevention and management measures is
to protect human life, the environment, the business, and property.
This approach has proven its worth in past crises.

Guidelines and Policies
E.ON’s Business Resilience function policy defines responsibilities
and roles as well as organizational requirements and provides
recommendations on how the business units can establish,
operate, and continually refine an effective business resilience
management system. The E.ON SE Management Board is
responsible for approving the function policy. The policy’s theme
encompasses the following overarching areas of operational
resilience: physical security, business continuity management,
emergency and crisis management, and travel security. In addition,
the policy requires the units to report critical incidents, serious
security incidents, and incidents with crisis potential to the
Security Response Center, which is operational at all times. These
requirements make it possible to manage, as soon as possible,
unpredictable and complex situations that could have a significant
impact on E.ON’s business, assets, stakeholders, and/or
reputation. If necessary, the central Business Resilience function
supports the business units in establishing the mechanisms and
meeting the minimum requirements. An overarching Business
Resilience Community provides additional support and information
sharing. More information on the Business Resilience Community
can be found below under “Specific Actions.”

Organization and Responsibilities
Ultimate responsibility for preventing and managing crises lies
with the E.ON Management Board. Strategic implementation of
physical security topics for the Group as well as operational
implementation for E.ON SE are carried out by the Business
Resilience function, which is part of the Legal, Compliance, and
Security department. With the exception of travel security,
operational implementation at the business units is conducted by
their respective business resilience organizations, which are
responsible for meeting Group-wide minimum standards for
business resilience. Alongside this regular organization, E.ON has a

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Crisis Prevention at PreussenElektra
PreussenElektra (“PEL”) is only allowed to operate a nuclear power
plant (“NPP”) if it can demonstrate that it has taken all practicable
steps to prevent a severe accident. PEL demonstrates its
compliance on an ongoing basis to the relevant authorities, such as
the Federal Ministry for the Environment, the Reactor Safety
Commission, and state-level agencies.

In 2023 there were no known security- and safety-related
incidents that significantly affected the security and safety level at
PEL’s NPPs. They remained at the normal long-term security and
safety level. On average, ten to 15 reportable events per year
occur at PEL’s NPPs. PEL headquarters conducts periodic reviews
in which it discusses incidents and the findings derived from them
with the NPPs that are in operation and those being dismantled. In
line with Germany’s nuclear ordinances and regulations, the
incidents, findings, and any measures taken in response are
communicated to state and federal authorities.

PEL regularly conducts statutory nuclear emergency and crisis
exercises, notifies Business Resilience Management at E.ON SE,
and reports on its results.

comprehensive crisis management organization. It is divided into
the respective operational business/regional or country level and
at the Group level. The Security Response Center is the central
reporting point for dealing with crises.

Specific Actions
To be able to respond quickly and adequately to crisis situations at
all times, E.ON designs and conducts several realistic crisis
simulations and training sessions each year. In 2023 E.ON
conducted two Group-wide crisis simulations in national and
international environments, several local crisis exercises at
business units, and ongoing training and continuing education for
designated crisis management teams. All members of these teams
are required to participate in regular exercises and training
sessions. In addition, all members of the crisis management team
receive a one-time onboarding training session for their respective
functions as well as additional training if required. Among other
things, crisis team leaders are trained to lead a team in complex,
stressful, time-critical, and uncertain situations.

In addition to crisis management activities, the Business Resilience
function conducts other measures to enable E.ON to achieve
lasting operational resilience. The main activities in 2023 were to:

• enhance governance by updating the minimum requirements for

business resilience

• harmonize Business Continuity activities

• strengthen our security culture by conducting an awareness

campaign that featured an eLearning module

• deploy and introduce central digital tools in line with the Group’s

digitalization strategy

Goals and Performance Review
E.ON relies on valuable security expertise and has effective
services and networks to ensure that its operating business can be

continuously maintained. This enables the Company to continually
increase its own operational resilience. E.ON has set the following
objectives for this purpose:

Proactive crisis management enables E.ON to identify crises at an
early stage and respond to them rapidly and effectively and
ensures the necessary Group-wide crisis management capabilities.
Another aim is to carry out regular checks to make sure that the
necessary infrastructure for crisis teams is in place and
operational. The Company also assesses, documents, and uses
findings from all crisis management exercises, training sessions,
and actual incidents to design and implement improvement
measures.

Business continuity management is designed to ensure that E.ON
can deal with emergencies and continue operating critical activities
in the event of a disruption. For this purpose, a business impact
analysis must identify and examine all critical processes at least
once a year. Its findings are used to design, update, and test
business continuity plans and solutions.

With the help of Group-wide services, E.ON aims to minimize the
risk for employees when travelling and at any place at work. This
includes the use of widely accepted digital solutions.

E.ON’s objective for physical security is to protect its employees,
property, and assets. For this purpose, the current security
situation and threats are continuously analyzed and incorporated
into physical security plans and solutions.

One focus in the 2023 reporting year was to achieve a high
awareness of business resilience issues in the organization and
enhance collaboration and information sharing in the Business
Resilience Community. Cross-departmental involvement and
engagement with business resilience raised the visibility and also
helped sharpen the profile of the Business Resilience function.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

Governance

Compliance and Anticorruption 

GRI 2-23, GRI 2-26, GRI 3-3, GRI 205

An important objective for E.ON is to prevent, detect, and respond
appropriately to any form of corporate misconduct. Customers,
business partners, or other stakeholders should not be deceived,
lied to, or otherwise deliberately harmed. We are committed to
ensuring that laws are strictly obeyed, and that integrity and
compliance are systematically promoted as core components of
our corporate culture. This is the only way for us to retain and
deepen our stakeholders’ trust for the long term.

Negligence or deliberate violations could lead to fines and criminal
prosecution for the employees in question and could harm E.ON’s
reputation. Corruption is unacceptable for another reason as well:
it leads to decisions being made for the wrong reasons. It can thus
impede progress and innovation, distort competition, and do
lasting damage to E.ON and its stakeholders.

E.ON therefore takes potential compliance violations very
seriously. If they are substantiated, we systematically pursue and
punish them. E.ON’s approach to compliance and anticorruption is
applicable for all business units and Corporate Functions and
extends to suppliers as well. Information on compliance notices
can be found in the “Progress and Measures” section below.

E.ON’s Approach
E.ON is committed to combating corruption in all its
manifestations and supports national and international efforts
directed against it. The Company’s participation in the United
Nations Global Compact underscores its rejection of any form of
corruption. The E.ON Management Board has the ultimate
responsibility for ensuring that E.ON conducts its business legally,
and at all times refrains from criminal practices in achieving its
business objectives. To ensure this for all business units, E.ON has

established a central compliance function. Its task is to support the
E.ON Management Board in its responsibility to prevent, detect,
and eliminate corporate crime.

E.ON has in place a compliance management system (“CMS”) to
mitigate the risk of compliance violations. The CMS is based on a
number of widely recognized practices, including measures to
foster a compliance culture and a commitment to compliance
targets (see “Goals and Performance Review”). It also enables us to
identify and analyze compliance risks, design a risk-adequate
compliance program, and expand our compliance organization.

Guidelines and Policies
Our Code of Conduct and our Supplier Code of Conduct (both of
which are available in the languages of all countries in which we
operate) focus on our guiding principle, “Doing the right thing.”
They provide easy-to-understand guidance for all areas that are
relevant to E.ON. These include human rights, anticorruption, fair
competition, and compliant relationships with business partners.
The E.ON Code of Conduct also contains an integrity test that
employees can use to check whether they are doing the right
thing. All employees are obligated under their employment
contract to act in accordance with the Code of Conduct’s rules. In
addition, ten People Guidelines, which apply to all business units,
explain in detail how employees can be sure that they are doing
things right. Our Code of Conduct is widely recognized by experts.
The quarterly magazine of BCM, a professional association for
compliance managers in Germany, last reviewed our Code of
Conduct in 2021 and awarded it the highest mark among all DAX
companies.

An important People Guideline that supports the Code of Conduct
addresses anticorruption. It contains a decision-making scheme
that uses the familiar green, amber, and red of traffic lights to
indicate when accepting or granting offers or gifts is permissible,
potentially problematic, or forbidden. Gratuities (such as donations
and sponsorships) above a certain threshold, which varies by
national law, must be approved by the local Compliance Officer.

Particularly strict requirements apply to invitations and gifts from
public, elected, or government officials and their representatives.
The Code of Conduct clearly states E.ON’s prohibition against
Company donations to political parties, political candidates,
political officeholders, or representatives of public agencies.

E.ON’s Compliance Function Policy defines basic compliance
structures, roles, and responsibilities.

In 2023 we began to reedit all compliance policies on the basis of
legal design principles to make them more readable and
comprehensible.

Organization and Responsibilities
E.ON refines and optimizes its CMS on an ongoing basis. Pursuant
to the Compliance Function Policy, we have established a Group-
wide organizational setup for this purpose. It consists of the Chief
Compliance Officer (“CCO”), the Global Head of Compliance & Data
Protection along with his Group Compliance team, and the
business units’ compliance officers. The CCO reports on a quarterly
basis to the E.ON Management Board and to the Supervisory
Board’s Audit and Risk Committee on the CMS’s effectiveness and
current developments and incidents. In the event of serious
incidents, the Management Board and the Audit and Risk
Committee are informed without delay. Suspected fraudulent
activities directed against the Company are investigated Group
Audit. The central Group Compliance and Data Protection function
is responsible for investigating fraud within the Company.

Specific Actions
In 2023 we continued to make eLearning courses available to all
employees and managers Group-wide. They are offered by a variety
of departments. The training plan’s topics include compliance and
anticorruption as well as other legal areas such as data protection,
cybersecurity, and human rights. Since 2010 all employees have
had to complete a Code of Conduct eLearning module on a regular
basis. Employees in units without Internet access receive this
training in written form and also at a face-to-face event.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Since 2021, new employees must complete a new joiner eLearning
module along with the module on the E.ON Code of Conduct. It
familiarizes them with Company rules and whom to contact if they
have questions or feel uncertain about a decision. In addition, new
managers receive integrity training that helps them fulfill their
function as role models in E.ON’s compliance culture.

We distributed a specially produced postcard to E.ON leaders in
2023 with the motto “What kind of a leader do you want to be?”
The purpose was to motivate them to talk to their employees
about misconduct and error culture in order to find out whether
misconduct and errors are openly addressed in their teams or
whether problems tend to go unaddressed.

E.ON wants to ensure that its compliance standards are adhered to
in its supply chain as well. We therefore subject potential suppliers
to a compliance check to assess whether they act in accordance
with our values and principles. To ensure that they meet our
compliance standards, we also conduct a prequalification process
to verify potential suppliers’ identity. This includes, for example,
determining whether a supplier appears in the media in connection
with compliance issues such as corruption or on an official
sanction and terrorism lists. In some cases, potential suppliers
must also complete a questionnaire, which E.ON evaluates
carefully. Prequalification is mandatory for all new suppliers. The
Human Rights and Supply Chain Management chapter provides
more information on the supplier onboarding process.

E.ON also uses a variety of tools to identify the areas of activity
where the risk for certain compliance breaches is particularly high.
Such compliance risk assessments (“CRAs”) are conducted on an
ongoing basis. CRAs employ various methods, ranging from
spreadsheet-style questionnaires to personal (and confidential, if
applicable) discussions with executives and employees. Based on
the findings, Group Compliance determines whether specific
measures need to be taken to amend and refine the CRAs in order
to appropriately address any (new) potential risks identified.

Our Know Your Counterparty (“KYC”) principle also defines
minimum requirements for certain business partners and
scenarios, other than suppliers. The KYC check, which is part of
the Group’s large-scale digitalization strategy, is an IT-supported
workflow that helps us verify counterparties’ integrity and avoid
legal, regulatory, and reputational risks related to compliance
issues such as corruption, money-laundering, tax evasion, violation
of economic sanctions, and terrorism financing. It is covered in our
Know Your Counterparty People Guideline.

In addition, Group Compliance continually engages in dialogue
with the compliance officers appointed by local units’
management and monitors their work. If employees suspect
misconduct or a violation of laws or Company policies, they are
instructed to report it. For this purpose, they may use—if they
prefer, anonymously—internal reporting channels or an IT-based
Whistleblower system. The system meets the requirements of
Germany’s Whistleblower Protection Act. It is available Group-
wide and can be accessed via the E.ON home page or by telephone.
Not only E.ON employees, but also business partners, their
employees, and other third parties can contact the hotline
confidentially. Group Compliance forwards the information to the
relevant department or unit.

E.ON is a member of a variety of compliance organizations. One
example is the German Institute for Compliance (whose German
acronym is DICO), where E.ON also serves as Chairman of DICO’s
Criminal Law Working Group and participates in the Internal
Investigations and Whistleblower Systems working group. DICO’s
mission is to promote the role of compliance and the
establishment of recognized compliance standards in corporate
governance in Germany. The institute also serves as a networking
platform for compliance experts in and outside Germany.

The Group Compliance and Data Protection department at E.ON
SE conducted an interdisciplinary research project with the Max
Weber Institute for Sociology at Heidelberg University, the Max
Planck Institute for Human Development in Berlin, and its spinoff,

Simply Rational GmbH. The project involved conducting surveys,
training sessions, and intervention studies at E.ON companies in
Germany to look into how altered situation assessments
(interventions) can influence the acceptance and efficiency of
preventive compliance measures and how their effectiveness and
longevity can be measured. One finding was that the traditional
medium of compliance knowledge transfer, training, has a
measurable and lasting impact on participants’ compliance
awareness. Innovative, interactive teaching methods also create an
awareness of the positive effects of structural measures like
diversity promotion and job rotation among managers. The
findings were presented to the E.ON Management Board, the
Supervisory Board’s Audit and Risk Committee, and the Group-
wide compliance community in early 2024. The latter will take the
insights into account when designing future compliance training
and communications measures and actively put them into practice.

Goals and Performance Review
We continuously evaluate the CMS’s effectiveness to ensure that
E.ON is able to prevent, detect, and take appropriate remedial
action against illegal or criminal conduct or other rules violations.
The CMS’s effectiveness is monitored by the E.ON Management
Board, the Supervisory Board’s Audit and Risk Committee, and also
Group Audit. The latter, an independent entity, is the third line of
defense of E.ON’s CMS.

The CMS’s effectiveness depends on how serious and credible our
compliance efforts within the Company are. This is reflected by,
for example, the resources we devote to compliance as well as the
quality, control, and monitoring of our measures. Evaluating
E.ON’s compliance culture and the perception of its compliance is
also relevant for the CMS’s effectiveness. Special consideration is
given to violations that lead to an internal audit. The audit
determines whether a violation resulted from negligence or
misconduct by an individual or individuals or from shortcomings in
the CMS. We use the findings to implement measures to avoid
similar incidents in future. The Management Board and the
Supervisory Board’s Audit and Risk Committee are convinced that

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ About this Report

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

the CMS was again effective in 2023. Their assessment was based
in part on audits as well as surveys of employees and
stakeholders.

Progress and Measures 
Number of Compliance Notices

2023

2022

2021

The CMS at E.ON is structured and follows a uniform roadmap
with defined steps for refining our business units’ compliance
measures. All Compliance Officers must present the status of their
unit's compliance roadmap regularly to their board and to Group
Compliance. The implementation of the compliance roadmap in
2023 proceeded as planned.

As every year, in 2023 we asked employees who had contacted
Group Compliance regarding Code of Conduct violations for
feedback about their experiences. We used it to assess Group
Compliance and Data Protection’s readiness to address such
violations or behaviors and to determine whether the information
in our Group-wide People Guidelines is appropriate. The findings
indicated that most respondents trust E.ON’s compliance
professionals and feel protected when reporting unethical
behavior.

Business integrity concerns,
such as potential illegal
activity, violation of law and
policy, corruption, antitrust,
business partner
compliance, and/or insider
trading in E.ON shares

Fraud against the Company
concerns, such as theft,
embezzlement, and
occupational fraud

HR-related concerns, such
as conflict of interest,
mobbing, sexual
harassment, discrimination,
unfair employment
practices, and so forth

Any other Code of Conduct-
related topics
Total

126

129
292

41
137

66
160

In 2023 the number of compliance notices increased from 137 to
292. E.ON divides compliance notices into four categories:
business integrity concerns, fraud against the Company concerns,
HR-related concerns, and other concerns related to the Code of
Conduct. The resulting investigations found that none of the
incidents reported were serious.

Fines for Non-compliance
E.ON paid a total of about €911,000 in fines for non-compliance
with laws in 2023.

Energy Affordability 

GRI 3-3

Since the war in Ukraine began, energy has increasingly played a
role in geopolitics. This presents E.ON with more challenges

alongside those posed by the energy transition. One thing is
certain: the energy supply must remain reliable, secure, and
affordable for industry and consumers. E.ON’s long-standing
approach is for its business to meet societal expectations
regarding energy by pursuing three objectives simultaneously:
climate protection, security of supply, and affordability. The
public’s interest, however, is shifting noticeably toward
affordability. E.ON therefore advocates swift and decisive action
by policymakers and the energy industry to ensure that energy
remains available and affordable for all.

E.ON’s Approach
To ensure fair prices for our customers and to be able to plan long
term, we generally procure energy in advance. However, we cannot
permanently insulate ourselves from market developments and
must factor in all cost components into our pricing—both when
these components fall and rise. Procurement prices on energy
markets increased significantly in 2022. In comparison, markets
eased considerably in 2023, but they still remain above the prewar
level. This is now affecting our customers as well, who in some
cases had to accept additional expenditures. E.ON therefore
lowered its power and gas prices for a portion of customers in 2023
to the degree that and as soon as market conditions allowed.

E.ON believes that it would be sensible to find a (social) policy
solution or at least to initiate measures to support businesses and
consumers in crisis situations in which the market is clearly out of
balance. During the legislative process, E.ON called for the
mechanisms to compensate gas and power suppliers to be as
consistent, pragmatic, and legally secure as possible. In particular,
liquidity risks and a high administrative workload should be
avoided.

The dramatic developments necessitated rapid action by
policymakers, above all to ensure secure and affordable supplies
for industry and consumers. Taxes, levies, and surcharges still
account for a large portion of energy costs. A reduction in energy
taxes and levies remains sensible. Consumers in Germany should

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→ Governance
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→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

therefore receive further relief by the electricity tax being reduced
to the EU minimum rate and the VAT on electricity to 7 percent.
E.ON has long advocated both.

regional units to deal with the energy crisis. These task forces
coordinate with each other on a regular basis regarding current
developments and initiatives at the units.

Ideally, these options should be exhausted before market
interventions to regulate prices are considered. It is important,
however, to address the causes of market uncertainties. In the
case of natural gas, a reduction in supply has been the primary
factor since the beginning of the war in Ukraine. Policymakers in
Germany are responding to this situation by creating additional gas
supply capacity, in particular by importing liquefied natural gas
(“LNG”), and by offering commercial and residential consumers
(and gas-fired power plants) incentives to conserve energy. In the
medium term, this can be remedied by more rapid renewables
growth; in the short term, energy conservation is imperative.

E.ON supports the measures enacted by German policymakers to
reduce energy costs and has implemented them accordingly. For
example, we endeavor that the government support payments
foreseen in relief packages reach customers quickly. This included
the German federal government’s payment of heating bills for
December 2022 as well as to the gas and electricity price caps,
which took effect on March 1, 2023, retroactively for the period
beginning January 1, 2023, and which E.ON fully implemented.
Governments are enacting consumer assistance programs in other
countries where E.ON operates. The Netherlands, for example,
introduced a price cap for electricity and gas in January 2023,
while variable standard tariffs were capped in the United Kingdom
by the so-called Energy Price Guarantee. In these and other E.ON
regions, we focus on designing customer-specific solutions and
communicating openly so that our customers can identify what
makes the most sense for them. In addition, we have taken steps
for E.ON itself to conserve energy. “Specific Actions” below
contains more information.

Organization and Responsibilities
E.ON responded quickly to the altered situation and established a
variety of task forces at Corporate Functions and at some of its

In addition, initiatives are in place to share best practices and thus
help the E.ON Group address the high prices faced by end-
customers. The regional units can implement the initiatives in a
way that is tailored to their needs. The focus is on energy
conservation, support for vulnerable customer groups,
communications (with customers, employees, and the media), and
the lobbying of policymakers. E.ON has already introduced several
of the project’s initiatives to support customers. For example, we
have expanded the range of installment payment plans and cash
payment vouchers. The latter option enables customers to pay in
cash by means of QR code at places like supermarkets and gas
stations. This makes it particularly easy for them to settle
outstanding amounts.

Specific Actions
We want to provide our customers with effective and reliable
assistance in dealing with their challenges. Our German sales units
offer individual advice through a variety of channels (telephone,
online, mail) and stay in touch with our customers. The energy-
saving advice and tips we offer on our website and other channels
are important as well.

Our customers in Germany can turn to the payment assistance
team. It supports customers facing financial difficulties by working
with them to find a suitable installment payment plan. One
solution, for example, would provide installment payments
without interest or fees.

This team also helps customers in financial emergencies. Its
services include arranging contact with job centers, telephone debt
counseling, and third-party debtor portals. We also explain to
them how they can conserve energy effectively, what options are
available for adjusting their payments, and how they can avoid
high additional payments in the next annual bill. If customers

encounter payment difficulties, we have always tried to work with
them to find a mutually acceptable solution. Disconnection should
always be the last resort. There is usually a lengthy process before
a disconnection is announced or actually takes place. We dialogue
extensively with customers who could potentially face a
disconnection to prevent it from happening.

Support for vulnerable customers is based on their individual
needs, the market situation, and the government programs
available in different countries. This support is therefore the
responsibility of the regional units. For example, their advisors help
customers with payment difficulties find out whether they qualify
for government support programs. They also check what
opportunities are available from other organizations, such as
obtaining prefinancing for insulation for a customer’s home.

We think individually tailored advice is important: individual
solutions are often more effective than a blanket incentive, such as
a lump sum payment for everyone. Some people may be less
interested in a cash benefit than others; instead, they are more
likely interested in switching to renewables in the near future. For
them and us, there are always good reasons to consider climate
protection when making energy decisions: the transition to a
climate-neutral energy supply independent of fossil fuels is
essential. That is why our own short-term conservation measures
are accompanied by efforts to use energy and heat at our facilities
as efficiently as possible and to deploy smart technologies to
progressively optimize energy consumption. We are also gradually
converting our buildings to green electricity and heat and,
wherever possible, installing solar panels to power them. In
addition, we are optimizing building controls, exterior lighting, and
heat systems, and using the flexible options of our hybrid working
arrangements to reduce energy consumption. In general, we factor
in the characteristics of our various facilities into our conservation
measures and work to ensure that we systematically comply with
all applicable occupational health and safety rules.

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Goals and Performance Review
The primary objective in the winter of 2022/2023 was to reduce
electricity and gas consumption. E.ON’s goal was therefore to
reduce the energy consumption of its own buildings by 20 percent
compared with a similar period in the previous year. Our sales
companies in Germany achieved this by reducing their
consumption in 2022 by about 23 percent relative to the prior
year. Across all its facilities in Germany, E.ON limited the
illumination of all non-essential light sources, such as logos and
outdoor lighting, or to switch them off entirely. Room
temperatures were reduced, and hot water was switched off
where possible. A particularly effective measure was to shut down
entire sections of a building and only heat them to a temperature
at which the building and its infrastructure are not damaged, as
was done at our main office buildings in Essen and Munich.

Even before the current developments, E.ON had set a target of
making the operation of its own buildings climate-neutral by
2030. The E.ON SE Management Board reaffirmed this target by
reiterating its support for the CEO Alliance’s Sustainable Corporate
Building Climate Pledge. The CEO Alliance is an international,
cross-sector coalition of the CEOs of 13 major European
companies; its targeted projects are intended to help shape a more
sustainable and resilient Europe. The aim of their Building Pledge is
to make the operation of their corporate buildings climate-neutral
by 2030 and to encourage other companies to join in.

Diversity and Inclusion 

GRI 3-3, GRI 405

Society is diverse. So is our workforce. At E.ON, people work
together who are likewise diverse in many ways, including
nationality, generation, gender, culture, religion, physical and
mental abilities, sexual orientation and identity, as well as ethnic
and social background. E.ON encourages and benefits from this
diversity and creates an inclusive environment, because the
interaction of people with different backgrounds, abilities, and

personalities results in good ideas. We want to become a diversity
pacesetter, yet are aware that changing a corporate culture takes
time. We are therefore tackling the issue step by step and would
like to implement the necessary measures with conviction.

E.ON’s Approach
Diversity is one of the dimensions of E.ON’s sustainability strategy
and an essential aspect of our vision and values. We want to
ensure equal opportunity for all our employees. Diversity is a
prerequisite for creativity and innovation, and we therefore aim to
take a targeted approach to promoting it. E.ON signed the German
Diversity Charter in 2008, publicly affirming its long-standing
commitment to a tolerant and inclusive corporate culture. The
Company has been an active member since 2020. In 2023 we
again participated in initiatives organized by the charter, such as
those in conjunction with German Diversity Day. Our motto for the
day was “corporate networks.” Our Company intranet posted a list
of diversity and inclusion networks for employees. We also
published information and instructions on what a network is and
how to set up one.

Guidelines and Policies
The E.ON Management Board and SE Works Council signed the
Diversity and Inclusion Declaration in 2016. It pledges their
commitment to creating a diverse and inclusive work environment
that empowers all employees to realize their individual potential.
Likewise in 2016, the Company, the SE Works Council, and the
Group representation for severely disabled persons signed the
Shared Understanding of Implementing Inclusion at E.ON, creating
an important foundation for integrating people with disabilities
into the Company.

Organization and Responsibilities
E.ON views diversity as crucial for a successful work environment.
The challenges vary by country. E.ON’s approach to HR is mostly
decentralized; each of our units therefore addresses diversity in its
particular cultural context. This gives them the opportunity to
meet challenges purposefully and to develop programs that reflect

the country or regions in which they operate. Diversity is managed
by Group HR/Executive HR together with a network of HR
professionals that meets face-to-face or virtually on a regular
basis. Supported by Group HR/Executive HR, the E.ON
Management Board is responsible for setting diversity targets for
E.ON as a whole and its units. Some targets may reflect the laws
of a particular country.

Specific Actions
E.ON promotes diversity and equal opportunity through a variety
of programs and networks, such as a mentoring program in
Germany to prepare female employees for management positions.
The Women@E.ON network aims to increase the visibility and
influence of women at E.ON. In addition, the LGBT+ & Friends
network promotes equality, diversity, and an inclusive work
environment. Also, E.ON is a member in various initiatives, such as
the Initiative Women into Leadership (“IWiL”) and the European
Round Table (“ERT”).

In March 2021 the E.ON Management Board adopted measures to
achieve more diversity and inclusion in the near term at E.ON in
Germany. It also recommended that the measures be
implemented, to the degree feasible, at E.ON units in other
countries as well. One example is the promotion of co-leadership,
in which two part-time executives share a leadership position,
giving them greater flexibility in balancing their professional and
private lives. Another flexible option is a part-time leadership
position, in which an executive works at least 80 percent, with full
time as an option. In addition, recruitment policies for
management positions were adjusted so that at least one
candidate on the shortlist is from the underrepresented gender.
Other measures include diversity training for executives.
Workshops on using inclusive language in job advertisements will
also be conducted.

The E.ON Management Board continued its support for diversity
networks in 2023. Management Board members serve as a

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sponsor for a Company network; the financial support comes from
E.ON. They currently sponsor the following networks:

• adaptABILITY, an initiative for disability and mental health.

Sponsor: Chief Executive Officer (“CEO”)

• LGBT+ & Friends, the second-placed diversity initiative at the
2021 CEO Award for D&I. Sponsor: Chief Financial Officer
(“CFO”)

• Women@E.ON, an alliance of and for women, which won the

2020 CEO Award for D&I as best network group. Sponsor: Chief
Operating Officer–Networks (“COO-N”).

In 2023 the CEO Award for Diversity and Inclusion was conferred
for the fifth time; the motto was “making diversity and inclusion a
priority at all levels.” The awards pay tribute to individuals
(category: Leader in Role Modeling DEI) and initiatives (category:
“Innovation”) at E.ON that strive to make a difference in diversity
and inclusion. In 2023 the winners of the CEO Award for Diversity
and Inclusion were chosen in a Group-wide vote. Oliver Henricks
was honored in the Leader category. As a member of the
Westenergie AG Management Board, he has proven to be an
active supporter of the E.ON LGBT+ and Friends Network for
Essen/Ruhr. He is also personally committed to the interests of
employees with disabilities of all kinds. The CEO Award for
Diversity and Inclusion in the Innovation category went to the
enviaM Diversity Circle, an ongoing group that periodically holds
(information) events. Its members are employees of different
generations who, alongside their regular duties, are devoted to
diversity and inclusion.

In 2023 E.ON and six other companies participated in the pilot
phase of the Diversity Compass, which was initiated by the
Stifterverband and the Charta der Vielfalt (Diversity Charter). The
pilot’s aim is to design structures, tools, and measures to include
diverse groups of people in everyday working life to consider them
in all Company areas and processes, and to firmly engrain

diversity, equity, and inclusion (“DE&I”) in corporate culture. The
project was supported by an outside process consultant. The
Diversity Compass runs for about 15 to 18 months and will be
completed in the second quarter of 2024.

In August 2023 E.ON was officially represented for the first time
at the 20th Christopher Street Day in Essen, known as “Ruhr
Pride.” On this day, about 40 E.ON employees demonstrated our
support for openness, diversity, and acceptance. Participation in
Ruhr Pride was initiated by the LGBT+ & Friends corporate
network.

The CEO Listening Tour, which was developed in 2021, continued
in 2023 as well. This format is less about talking to employees and
more about listening to them. The focus is on the work
environment at E.ON, discrimination in the workplace, corporate
networks, and many other topics. In 2023 the focus was on
relocation within the E.ON Group and barrier-free, IT-supported
work. The tour will continue in 2024.

We ran an in-house campaign on microaggression to mark
International Day for Tolerance on November 16. It presented
situations covering the various dimensions of diversity in a
communicative manner and explained in detail the extent to which
they can be considered microaggressions.

Goals and Performance Review
E.ON SE and E.ON companies in Germany must comply with the
German Law for the Equal Participation of Women and Men in
Leadership Positions in the Private Sector and the Public Sector,
which took effect on May 1, 2015. In February 2022 the E.ON
Management Board set new target quotas for E.ON SE for the new
implementation period beginning on July 1, 2022. The target
quotas are 36 percent for the proportion of women occupying
both the first and the second levels of management below the
Management Board. The targets are to be met by June 30,
2027.The proportion of women occupying the first level of
management below the Management Board was 23 percent at the

end of the 2023 financial year, that of the second of management
below the Management Board was 29 percent.

The E.ON SE Management Board has recommended to those E.ON
Group companies that are legally obligated to set targets for the
proportion of women on their supervisory board, management
board, and the next two levels of management that they select
ambitious targets that likewise should be met by June 30, 2027.

In addition, it was recommended that other relevant E.ON Group
companies set appropriate quota targets even if they are not
legally obligated to do so. The companies of the E.ON Group have
heeded this recommendation. In addition, in 2021 E.ON set a
voluntary Company-wide target that goes beyond statutory
requirements. The target is to increase the proportion of women in
management positions in all business units in all countries to at
least 32 percent by year-end 2031. This figure corresponds to the
proportion of women in E.ON’s workforce at year-end 2021.
Group HR monitors progress toward the target once a year and
reports the findings to the E.ON Management Board. E.ON
discloses the respective figures at year-end for the E.ON Group as
a whole.

Share of Female Executives1
Percentages
E.ON Group
1Against the total number of managers.

2023
24

2022
23

2021
21

E.ON aims to provide equal pay to women and men for comparable
jobs at all Group companies. Due to its decentralized management
approach, E.ON does not collect data at the Group level or assess
the pay gap (with the exception of the United Kingdom due to its
legal requirements).

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→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Progress and Measures

GRI 405-1

Women’s Quota by Segment1
Percentages
Energy Networks
Customer Solutions
Corporate Functions/Other2
E.ON Group

2023
23
44
40
32

2022
23
44
38
31

2021
23
44
38
32

1Total workforce; includes board members, managing directors, apprentices, interns, and working
students.
2Due to the changes in segment reporting, the previous year's figures have been adjusted
accordingly.

The proportion of female employees increased slightly year on
year. At year-end 2023, women accounted for 32 percent of our
workforce.

Proportion of Severely Disabled Employees in Germany1 
Percentages
Energy Networks
Customer Solutions
Corporate Functions/Other2
E.ON Group

2023
4.4
4.2
5.6
4.5

2022
4.9
4.3
5.9
5.0

2021
5.3
4.6
6.4
5.3

laws of some countries prohibit doing so. Germany, however,
obliges companies to collect and publish data about the number of
employees with severe disabilities at their operations.

The proportion of women among the shareholder representatives
on the Supervisory Board is 38 percent. All members of the
Supervisory Board were independent at the end of 2023.

Composition of the Supervisory Board
Percent
2023
Share of women on the
Supervisory Board1
Share of independent
Supervisory Board members
1Refers to shareholder representatives.

100

2022

2021

100

Human Rights and Supply Chain Management 

GRI 2-6, GRI 2-23, GRI 2-24, GRI 2-25, GRI 2-26, GRI 3-3,
GRI 205, GRI 412

► At the end of 2023, 1,775 people with severe disabilities or
equivalent were employed at E.ON companies in Germany (prior
year: 1,782 ). ◄

The Human Rights Policy Statement commits E.ON to freedom,
equality, and respect for all people without distinction. The aim is
to provide a fair and mutually trustful working environment to all
employees. E.ON therefore does not ask for or collect information
about employees’ ethnicity, marital status, and so forth. In fact, the

Sustainability is integral to E.ON’s corporate strategy and guides
its actions today and will do so in the future as well. This obliges us
to ensure respect for human rights in all aspects of our business,
including our supply chain. E.ON therefore expects its suppliers
worldwide to meet minimum standards in their environmental,
social, and governance (“ESG”) performance, including in relation
to human rights. E.ON assesses its suppliers’ ESG performance
prior to doing business with them and subject suppliers in higher-

risk countries or categories to greater scrutiny. In addition, E.ON
aims to comply with the legal requirements for transparency along
its supply chain, which in many countries are becoming
increasingly more demanding, such as the Supply Chain Due
Diligence Act in Germany (“Supply Chain Act”).

E.ON’s Approach
E.ON takes its responsibilities seriously and is therefore committed
to doing business in a compliant way, respecting human rights,
protecting the environment, and ensuring proper work conditions.
E.ON expects that its suppliers are likewise committed to high ESG
standards and has processes in place to ensure that they do.
Engaging in dialogue with stakeholders and participating in
industry initiatives help us to pay particular attention to human
rights issues. For example, E.ON is a member of econsense, a
network of Germany-based multinational companies dedicated to
promoting sustainable business development and respect for
human rights. E.ON also participates in a working group at the
German Compliance Institute DICO focusing on the same
objectives. E.ON has been participating in the German Energy
Sector Dialogue since January 2023, a multi-stakeholder dialogue
that brings together the signatory companies, associations, trade
unions, civil society organizations, the German Institute for Human
Rights, and the German Federal Ministry of Labor and Social
Affairs (German abbreviation: BMAS). The aim is to pool expertise
and resources and to focus on the German energy industry’s
human rights and environmental risks along its global supply and
value chains in order to improve the human rights and
environmental situation.

E.ON launched a Group-wide human rights due diligence project in
the summer of 2022 to prepare the Company for the requirements
of the Supply Chain Act. The project identified gaps, developed and
implemented optimization measures, and designed a Group-wide
approach to human rights management. The approach took effect
on January 1, 2023, and assigns Group-wide management to the
Human Rights Center of Expertise and the Chief Human Rights

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→ Risks and Chances Report

Officer. More information can be found below under “Organization
and Responsibilities.”

Guidelines and Policies
To prevent human rights violations, E.ON aims to always adhere to
external standards and for this purpose has its own policies and
guidelines. E.ON’s Human Rights Statement, which was signed by all
Management Board members and the Chief Human Rights Officer,
is published on the E.ON website. The statement acknowledges
the International Bill of Human Rights and the Declaration on
Fundamental Principles and Rights at Work of the International
Labour Organization (“ILO”) of the United Nations (“UN”) and its
fundamental conventions and provides an overview of our risks
and measures taken. It also refers to E.ON’s own guidelines, such
as the Codes of Conduct for employees and suppliers. E.ON’s Code
of Conduct (more information can be found in the Compliance and
Anticorruption chapter) obliges all employees to contribute to a
non-discriminatory and safe work environment and to respect
human rights. In addition, a People Guideline provides guidance to
employees so that they procure goods and services in line with
E.ON’s ESG standards. The rules and regulations E.ON follows also
include the European Convention for the Protection of Human Rights
and the principles of the United Nations Global Compact (“UNGC”).
E.ON has participated in the UNGC since 2005. Other guidelines
and policies are the responsibility of the individual departments
and support the implementation of suitable preventive measures
for areas such as HSE and compliance. These are described in the
chapters entitled Environmental Management, Occupational
Health and Safety, and Compliance and Anticorruption.

The E.ON Supply Chain Function Policy describes the mandate and
organizational setup of the Supply Chain function. The function
encompasses the management of procurement processes,
activities, policies, tools, and supplier relationships for all units to
which the policy applies. In addition, the Function Policy (in
conjunction with the Supply Chain Handbook) defines Group-wide
principles, processes, and responsibilities for non-fuel
procurement by the above-mentioned units. Excluded from this
are the special cases on a specific list (for example energy and fuel
procurement, financial and real estate transactions, and taxes).

Organization and Responsibilities
The role of Chief Human Rights Officer was previously held by the
Chairman of the E.ON Management Board, Leonhard Birnbaum, who
continues to serve as Chief Sustainability Officer and Chairman of
the Sustainability Council. As part of the Group-wide human rights
due diligence project, the task areas of the future Human Rights
Officer were expanded in line with the Supply Chain Act, with a
greater focus on legal aspects. In order to meet the associated new
requirements, in January 2023 E.ON transferred the role to the
General Counsel and Chief Compliance Officer. He is the new Chief
Human Rights Officer and thus responsible for monitoring our
human rights risk management system and reports on this to the
Management Board on a regular basis. He is also a permanent
member of the Sustainability Council. Staff in the Sustainability
department and the Legal Affairs, Compliance and Security division
deal with human rights issues, such as changes in legislation.
Depending on the issue, the Chief Human Rights Officer can
involve the Sustainability Council or the E.ON Management Board.

The Supplier Code of Conduct defines standards for human rights,
working conditions, environmental protection, and legally
compliant, honest business practices that E.ON requires its
suppliers to meet; it was updated on September 1, 2023, and
applies to all suppliers. The current version is supplemented by
additional requirements from the Supply Chain Act and stipulates
the standards to be complied with in regard to fair working
conditions in the supply chain and to climate protection.

A new task area, the Human Rights Center of Expertise, was created
as part of the human rights due diligence project. It assumed the
completed project’s tasks from the summer of 2023 onward. The
center, which is part of the Sustainability & Climate department,
ensures that legal requirements are fulfilled across all divisions and
units. Furthermore, it implements and maintains our human rights
risk management system, conducts periodic risk analyses of our
own business as well as our supply chain, and reports on them. It is

also responsible for Group-wide complaints management and
exchanges information with external stakeholders on topics
relevant to human rights. In addition, it keeps the Chief Human
Rights Officer informed about current developments and incidents
and advises him on upcoming activities and decisions.

All employees of Group units are responsible for ensuring that
requirements are met at our own company. The Supply Chain
division, on the other hand, deals with the full range of ESG
aspects along the supply chain. It carries out the related tasks in
observance of legal requirements as well as company policies,
including HSE and sustainability standards.

Risk Management pursuant to the Supply Chain Act
We conduct periodic and ad hoc risk analyses for our own business
and for our supply chain in order to identify human rights and
environmental risks at an early stage. The analyses have two stages.
First, we use publicly available indicators and sources to assess the
human rights and environmental risks defined by the Supply Chain
Act. Examples include the Global Rights Index of the International
Trade Union Confederation (“ITUC”) and the Human Development
Report of the United Nations Development Programme (“UNDP”).
We adopt a risk-based approach that includes both country and
industry risks. We also consider risks associated with specific
procurement categories and use a digital solution for ongoing risk
assessment of our own facilities as well as our suppliers. Our own
facilities will be integrated into this digital solution starting in
2024. In addition, risk analysis incorporates information received
through our complaints process. Then we identify how we can
reduce the risk potential by means of our existing measures and,
finally, prioritize the specific risks. As part of risk analyses
conducted on a regular basis, we have prioritized identified risks
for our own facilities and for our supply chain. For our own
business, we have identified occupational health and safety as a
risk inherent in our industry and thus as a priority risk for us. The
associated preventive measures are described in the
Environmental Management and Occupational Health and Safety
chapters. For our suppliers and our deeper value chain, we have

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→ Forecast Report

→ Risks and Chances Report

additionally identified fair working conditions as a priority risk due to
the complexity of our global supply chains. We established a focus
group for our solar and battery supply chains. It consists of experts
from the Procurement, Sales, and Sustainability departments and
provides closer support for these supply chains. We also address
the issue in industry initiatives like Solar Power Europe.

Supply Chain Management
Our supply chain management for non-fuel suppliers, to which the
following remarks refer, consists of various preventive measures that
are interlinked and accompany the supplier in the procurement
process. They are fine-tuned on a regular basis and described below:

The onboarding process for suppliers is carried out before a
contract is signed. Its steps include self-registration by the
supplier, a formal pledge to comply with the E.ON Supplier Code of
Conduct, and a compliance check. Every non-fuel supplier whose
individual transaction volume exceeds €25,000 must complete
this process. Non-fuel suppliers that are not subject to supplier
onboarding must agree to E.ON’s General Terms and Conditions
for Purchase Contracts, which are legally binding. These oblige
non-fuel suppliers, among other things, to comply with the
minimum standards of our Supplier Code of Conduct.

This approach’s purpose is to minimize potential HSE and CSR
risks. As of year-end 2023, 97.4 percent of non-fuel suppliers had
completed the onboarding process. New suppliers are asked by the
manager responsible for their product or service category to register
using the supplier onboarding solution. Depending on the transaction
volume and HSE risk, suppliers must answer one or more
questionnaires. In certain cases, E.ON may take additional steps.
These include a supplier audit to check whether the supplier complies
with E.ON’s standards for human rights, working conditions, and
environmental protection. E.ON may also require a supplier to have
in place an environmental management system certified to ISO
14001 or Eco-Management and Audit Scheme (“EMAS”) III or a
health and safety management system certified to ISO 45001.
Suppliers that participate in tenders as part of a public procurement

act do not use the above-described process but instead follow the
qualification procedures required under their country’s laws.

Building on the assessment procedures introduced in 2018, in the
year under review E.ON continued to evaluate its suppliers’
performance and, based on the findings, make decisions about its
relationship with them. Alongside onboarding, E.ON determines
annually which of its non-fuel suppliers it deems material; E.ON
evaluates them on the basis of five KPIs: quality, commercial
aspects, delivery, innovation, and corporate sustainability, including
human rights. E.ON discusses the results with its suppliers in
feedback meetings. During this meeting, E.ON also decides
whether it will require a supplier to take specific improvement
measures if the business relationship is to be maintained.

The human rights due diligence check introduced in 2021 is based
on a human rights risk matrix that combines the risks of the different
categories of goods and services E.ON procures with the risks of
the countries in which suppliers operate. Since being updated in
2023 the matrix covers all of E.ON’s procurement categories.
Potentially risky suppliers first had to pass additional checks, such
as a more detailed questionnaire or audit, and agree to make
improvements and provide evidence of their implementation. In
2023, more than 3,600 new and existing suppliers answered the
questionnaire. Many high-risk suppliers successfully completed
the human rights due diligence check. Suppliers that have
difficulty answering the questionnaire or providing evidence of
their measures are supported and closely monitored.

In the second quarter of 2022 E.ON began introducing a digital
solution for ongoing risk assessment of suppliers with medium and
high human rights risk. They are assessed in a variety of
categories, including sustainability, finance, cybersecurity, supply
chain disruption, and compliance. The digital solution looks at
several elements called points of interest (“PoIs”): the holding
company of suppliers, branches, plant locations, and logistics
routes. Since the program’s introduction, over 3,800 PoIs have
been monitored on an ongoing basis, thereby covering 60 percent

of E.ON’s annual spend. Nevertheless, E.ON is aware that the
complexity of international supply chains poses a challenge to
transparency. E.ON is therefore also active in industry initiatives to
develop industry-specific standards for improved transparency in
supply chains, as described above under “E.ON’s Approach” and in
the ESG Materiality and Stakeholder Engagement chapter.

Specific Actions

Multistage Supplier Analysis
In 2023 we conducted a multistage analysis of various product
categories, including transformers, inverters, solar systems,
batteries, and circuit breakers. The analysis was not only of end
products, but also preliminary stages, including electronic
components as well as chemicals and raw materials used.

The findings indicated clear differences between product
categories and thus provided important insights for future
measures to improve sustainability at the product and supplier level.
Overall, the analysis makes an important contribution to enhancing
E.ON Supply Chain’s environmental and social responsibility.

Decarbonization
A first step toward decarbonizing supply chains is to make the
current CO2 emissions of purchased goods and services more
transparent. In 2022 E.ON therefore conducted a heatmap
analysis of the greenhouse gas emissions in its supply chains
based on third-party emissions factors and cost-based data. We
will repeat the analysis on an annual basis. In 2023 the analysis
included taking a closer look at lower-emissions metals and sulfur
hexafluoride (“SF6”) gas. More information on our reduction efforts
can be found in the Climate Protection chapter.

Training
E.ON continually improves its eLearning tools for employees, such
as the annual Web training module on human rights, compliance,
and cyber and data security, which was updated in September

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2023. More than 80 percent of employees had completed the
module by the end of 2023.

In addition, E.ON trained about 320 Supply Chain employees on
respect for human rights along the supply chain, new aspects of
onboarding, and E.ON’s risk matrix for human rights.

Goals and Performance Review
E.ON’s objective is to avoid violations of human rights,
environmental standards, and its corporate principles. For this
purpose, E.ON endeavors to identify the relevant risks along its
value chain. Periodic risk assessments can help E.ON detect actual
or suspected violations. If violations occur, the Supply Chain
Compliance Officer and the respective Supply Chain Director are
notified immediately and corrective measures are demanded from
the supplier. Implementation is precisely monitored by E.ON. If the
situation does not improve, E.ON terminates its business
relationship with the supplier. No business relationships were
terminated for this reason in 2023.

Employees can report possible violations of human rights through
internal reporting channels and a Group-wide, IT-supported,
external Whistleblower hotline. The hotline service, which is
published on the Internet, can take calls in the official languages of
all countries in which E.ON operates. Not only E.ON employees,
but also business partners, their employees, and other third parties
can contact the hotline, anonymously if they wish. The information
is forwarded to the responsible department at Corporate
Functions. Depending on the type and severity of the potential
violation, the Compliance department immediately reports it to the
E.ON Management Board, files criminal charges, initiates its own
investigation, or takes other measures. In 2023 the Whistleblower
system was used to report four potential human rights violations.
The investigation found that the allegations were not a violation of
human rights or E.ON’s Code of Conduct.

Excursus: Biomass
E.ON is committed to procuring the fuel for its biomass-fired assets
responsibly and sustainably. Suppliers of solid biomass must, like
non-fuel suppliers, contractually agree to comply with our Supplier
Code of Conduct. Until March 2023, the E.ON Biomass Purchasing
Amendment from 2010 defined our policies and procedures,
which include risk assessments, supplier audits, and provisions for
joint ventures. Effective March 2023, we redefined the terms for
the purchase of solid biomass for our Energy Infrastructure
Solutions (“EIS”) business and thus replaced the former Biomass
Purchasing Amendment. The purpose of the new rules is to ensure
that all relevant units act in accordance with applicable EU
regulations and meet E.ON’s sustainability standards when
procuring and using solid biomass for their business activities. All
biomass suppliers must pledge to respect human rights, safeguard
the general living conditions of persons affected by biomass
production, and protect biodiversity and the environment.

A large proportion of our biomass capacity is installed in Sweden.
E.ON Energiinfrastruktur AB operates district heating businesses
in Örebro, Nörrköping, and parts of Stockholm and Malmö. Since
2014, E.ON has assessed the CSR performance of its suppliers
there using a method developed by E.ON Energiinfrastruktur AB.
In addition, key requirements for biomass suppliers—such as the
Supplier Code of Conduct and compliance with the EU Renewable
Energy Directive II (“RED II”)—have been integral to contracts with
suppliers since 2021. In 2022 E.ON introduced an expanded in-
house assessment of sustainability-related risks and applied it in
2023 as well.

Uranium Procurement
Owing to legislation amended in 2022, E.ON subsidiary
PreussenElektra continued to operate Isar 2 nuclear power plant
until April 15, 2023, after which the plant stopped producing
electricity. No additional fuel had to be procured for extended
operations. PreussenElektra stopped procuring uranium in 2020.

Tax 

GRI 3-3

E.ON considers good corporate governance to consist primarily of
responsible and value-oriented management. This also includes
having a transparent tax strategy. E.ON’s tax strategy and corporate
strategy are closely aligned. The aim is to manage the Company’s
taxes sustainably in order to help ensure that it continues to invest,
to operate flexibly and efficiently, and to provide attractive dividends
to shareholders. E.ON’s tax strategy is therefore designed to be
fully compliant with tax law. It ensures that management of
E.ON’s taxation is efficient, responsible, transparent, and accurate,
both for the Group as a whole and in individual tax jurisdictions.

E.ON’s Approach
E.ON is aware of its social responsibility regarding its significance
as a tax payer. It aims for full tax compliance and adheres to all
national and international tax legislation and standards. E.ON also
has in place policies and procedures to prevent tax evasion. This
includes the obligation of all employees to report any suspicions or
concerns to their supervisor, Group Tax, their unit’s Tax function,
Group Compliance, or the Whistleblower hotline; if they wish, they
may do so anonymously (for more information about the hotline,
see the Compliance and Anticorruption chapter).

Guidelines and Policies
E.ON’s tax function encompasses Group Tax as well as the units’
Tax departments. It actively and continually identifies, assesses,
and monitors tax risks to make sure that the Company’s tax
practices are in line with its strategic objectives. To achieve this
and to ensure appropriate responses to risks, E.ON has in place a
governance framework, which includes a Tax Function Policy. The
framework and policy were approved by the E.ON Management
Board and are mandatory for all Group companies. They are
embedded into E.ON’s overall compliance management system
and supplemented by comprehensive risk control management
procedures, continual self-assessment as well as regular internal

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and external audits. The Tax function has also published the
aforementioned tax strategy.

E.ON does not make use of jurisdictions publicly identified as non-
cooperative—also know as tax oases—to reduce its effective tax
burden. E.ON does not relocate any business activities in low-tax
jurisdictions with the primary goal of thereby achieving lower
taxation. E.ON does not use any aggressive tax-reducing
structures, particularly no structures that lack a business reason or
motive. E.ON’s tax planning always adopts the principle of
complying with both letter and the spirit of the law.

E.ON has issued a binding Group-wide Transfer Pricing Policy to
ensure that intra-Group transactions are conducted in accordance
with the arm’s-length principle. This principle of international tax
law states that the transfer prices of cross-border transactions
between Group units, including all ownership interests above 25
percent, must be set as they would be in a comparable transaction
between independent third parties in an external market. Group
Tax is responsible for monitoring adherence to the arm’s-length
principle and is involved in all major intra-Group transactions. It
does this through various means, including regular meetings with
relevant E.ON business units and functions as well as fixed Group-
wide transfer pricing processes. In addition, participants from
relevant business units and functions (in Germany and elsewhere)
meet at least once a year to align cross-border intra-Group
transactions to meet operational as well as tax requirements.
Transfer pricing processes are monitored on an ongoing basis.

Organization and Responsibilities
The E.ON Management Board has overall responsibility for the
Group’s corporate strategy, which includes managing and
monitoring the tax function. It has delegated the responsibility for
this function to the Senior Vice President (“SVP”) Group Tax, who
reports directly to the Chief Financial Officer. The heads of the Tax
departments in Germany and other countries report directly to
Group Tax as well as to their unit’s management board.
Furthermore, E.ON SE has appointed a Tax Compliance Officer

(“TCO”), whose role is to ensure that the existing tax compliance
management system is effective and efficient. The TCO reports
directly to the SVP Group Tax. Additionally, local tax compliance
management systems were put in place at the level of
independent tax groups in Germany and other countries.

The SVP Group Tax defines E.ON’s tax principles, and is
responsible for ensuring that these principles and concomitant
procedures are in place, maintained, and complied with Group-
wide. He reports to the E.ON Supervisory Board’s Audit and Risk
Committee on tax-related issues and risks. In addition, financial tax
risks are reported to Group Controlling and Risk, which examines
these risks from a Group perspective and prepares reports for the
consolidated risk assessment of the E.ON Group. The tax function
disseminates guidelines and policies to ensure tax compliance,
including related tasks, processes, and responsibilities. E.ON has in
place tax compliance management systems according to IDW
audit standard PS 980 at its major operations in Germany. The
systems’ purpose is to identify and classify all material tax risks
and to map the findings in a detailed risk control matrix (“RCM”).
The RCMs are continually updated and maintained.

ensure that our calculations always comply with the law. Where
reasonable, we implement software interfaces to ensure data
integrity and to minimize the risk of manual errors.

E.ON employees participate in a variety of working groups and
committees of trade associations, such as the Federation of
German Industries (German abbreviation: “BDI”), the German
Association of Energy and Water Industries (German abbreviation:
“BDEW”), and Chambers of Commerce. This enables them to
contribute to the discussion on new tax legislation as well (for
more information on E.ON’s work in associations, see the ESG
Materiality and Stakeholder Engagement chapter).

Goals and Performance Review
E.ON and its tax function place great emphasis on maintaining
transparent and mutual communications with the tax authorities in
the countries where the Company does operates. We prepare and
file all required tax returns and pay the correct amount of tax on
time and adopt the principle of complying with both letter and the
spirit of the law. We seek advice from independent experts to
clarify matters of doubt and uncertainties.

Specific Actions
E.ON’s tax function takes a variety of steps to stay on top of new
developments. Teams and managers hold meetings at various
intervals (weekly, biweekly, or monthly) to discuss emerging tax
issues. E.ON’s tax experts also meet at slightly longer intervals
(monthly, quarterly, or annually) to discuss country-specific and
international tax issues. These meetings, which take place both
physically and virtually, promote continuous collaboration and
coordination between Group Tax and the units’ Tax departments.
In addition, Tax teams and managers also receive in-house training.
E.ON strives to continually improve processes, particularly by
deploying and using digital solutions that ensure tax compliance
while enhancing efficiency. Our digital solutions include an
integrated toolset that calculates income tax for quarterly and
annual financial statements and tax returns. Tax tools are updated
on a regular basis to reflect changes in tax laws. This enables us to

To achieve a higher level of certainty, E.ON regularly discusses
binding tax rulings or advance pricing agreements (“APA”) with tax
authorities if this is possible, expedient, and of general or economic
importance to E.ON. Our aim is to prevent subsequent disagreements
between the tax authorities of different states and our business units.

E.ON partners with external tax experts that help it supervise
company audits and prepare tax returns and declarations as well as
tax payments. The collaboration with external partners is based on
open, mutually trustful communications. Each partner performs its
own independent quality assurance, which, in the aggregate, leads
to adequate quality checks. E.ON constantly aims for certainty in
its tax positions and, where appropriate, obtains internal or external
advice to verify and validate its positions. In case our assessment
does not match that of the tax authorities, we communicate the
divergent opinion openly in order to prevent misunderstandings.

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Sustainable Finance and Investment

1. Climate change mitigation

► The transition to a sustainable and carbon-neutral economy is
in full swing. Sustainable energy is not essential for propelling
economic and social development, but a key factor in tackling
climate change. Meeting the global challenges of climate change
will require that the financial system changes so that it promotes
sustainable businesses and climate-friendly solutions. E.ON’s
ambitious climate targets set it on an emissions-reduction path
that is systematically aligned with the new energy world.
Sustainability is at the core of our corporate strategy and is also
the guiding principle for our actions. Our strategy accords with the
European Union’s decarbonization agenda and the EU Green Deal.
Energy networks—one of E.ON’s core businesses—are the platform
for Europe’s energy transition. Our investment program therefore
aims to be largely aligned with the EU taxonomy. More than half of
our funding needs will be met by the issuance of green bonds. Our
strategy thus also reflects capital markets’ increasing interest in
sustainable investments. ◄

EU Taxonomy 

General Principles
The European Commission’s action plan on financing sustainable
growth defined a series of measures to channel capital toward
environmentally sustainable activities and thus to help enable the
European Union to become climate-neutral by 2050 as foreseen
by the European Green Deal. The Commission laid the foundation
for this in Regulation 2020/852, the EU Taxonomy Regulation,
which describes what is considered an “environmentally
sustainable activity”, and which criteria are used to classify an
economic activity as environmentally sustainable. The aim is to
classify economic activities EU-wide on the basis of defined
requirements with regard to their contribution to the six defined
environmental objectives (Article 9 of the EU taxonomy) and thus
to support the European Union’s transformation to a climate and
environmentally friendly economy. The six objectives are:

2. Climate change adaptation

3. The sustainable use and protection of water and marine

resources

4. The transition to a circular economy

5. Pollution prevention and control

6. The protection and restoration of biodiversity and ecosystems

Article 3 of the EU taxonomy defines economic activities as
environmentally sustainable if they:

• contribute substantially to at least one of six environmental

objectives (Articles 10 to 16)

• do no significant harm to any of the other five environmental

objectives (Article 17)

• comply with minimum standards for occupational safety, human
rights, anti-corruption, fair competition, and taxation (Article 18)

• comply with technical screening criteria defined by the European

Commission

For the 2023 financial year and, for the first time, all six
environmental objectives are to be considered for the question of a
substantial contribution. Sets of criteria are available for defining
the substantial contribution toward achieving the objectives. In the
2022 and 2021 financial years, these sets of criteria were only
available for the first two environmental objectives.

environmental objectives 3 to 6 is only mandatory for the 2024
financial year onward; reporting on taxonomy-eligibility is required
for the 2023 financial year.

An economic activity makes a substantial contribution to
environmental objective 1, “Climate change mitigation,” if it
contributes substantially to the stabilization of greenhouse-gas
(“GHG”) concentrations in the atmosphere at a level that prevents
dangerous anthropogenic interference with the climate system,
consistent with the Paris Agreement’s long-term temperature
target through the avoidance or reduction of GHG emissions.

Economic activities that contribute to environmental objective 2,
“Climate change adaptation,” include or provide solutions that
either avoid or substantially reduce the risk of the adverse impacts
of the current and the future climate on the economic activity itself
or on people, nature, or assets.

Economic activities that achieve or maintain good environmental
status for all water and marine resources make a significant
contribution to environmental objective 3, “sustainable use and
protection of water and marine resources.”

Environmental objective 4, “Transition to a circular economy,”
focuses on economic activities that contribute to promoting the
efficient use of resources through reuse and recycling.

Economic activity that eliminates pollution of air, water, soil, living
organisms, and food resources makes a significant contribution to
environmental objective 5, “Pollution prevention and control.”

Economic activities that reflect the need to protect, conserve, or
restore biodiversity or to maintain or restore ecosystems to a good
condition contribute to environmental objective 6, “Protection and
restoration of biodiversity and ecosystems.”

Known as technical screening criteria (“TSC”), they specify which
economic activities are considered taxonomy-aligned. Reporting
on the taxonomy-alignment of economic activities with regard to

E.ON has been required beginning with the 2021 financial year to
disclose the proportion of investments, revenues, and operating

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expenses that were attributable to taxonomy-eligible and
taxonomy-non-eligible economic activities. Activities are
taxonomy-eligible if they are described in principle in Annexes I
and II to the Delegated Act on environmental objectives and can be
assigned, regardless of whether the corresponding TSC for
environmentally sustainable activities are met.

In addition to the information required by law, E.ON voluntarily
disclosed its taxonomy-aligned investments, revenues, and
operating expenditures for the 2021 financial year. Activities are
taxonomy-aligned if the corresponding taxonomy-eligible activities
also meet all the criteria in Article 3 of the EU Taxonomy. These
disclosures have been mandatory since 2022.

The European Commission has defined taxonomy criteria for
various economic activities under which conditions these activities
make a substantial contribution to at least one of the
environmental objectives and, at the same time, do not
significantly harm the achievement of the EU’s five other
environmental objectives. However, the criteria’s provisions,
formulations, and terms are still subject to uncertainties of
interpretation. The following presents our interpretation of the
sets of criteria.

In early March 2022 the European Commission published a
supplementary Delegated Taxonomy Act on the environmental
objectives 1, “climate change mitigation,” and 2, “climate change
adaptation.” It now defines criteria for other economic activities
under which investments in gas and nuclear power activities can
be classified as environmentally sustainable. This is intended to
accelerate the transition toward a carbon-neutral future
characterized predominantly by renewable energy sources.
Application of the supplementary act has been mandatory since
the 2022 financial year.

Regarding nuclear energy, E.ON has come to the conclusion, based
on a comprehensive review, that the temporary continued
operation of Isar 2 nuclear power plant until April 2023, did not fall

under any of the activities described in the supplementary
delegated act. Activity 4.28 also does not apply to power
generation in the last reactor unit still operated by
PreussenElektra, since the decision made by the German federal
government to temporarily extend operations does not correspond
to an extension of the plant’s operation within the meaning of the
criteria of 4.28.

The sets of criteria for generating electricity, heat, and/or cooling
from fossil gas are fundamentally relevant for E.ON. E.ON installs
and operates plants that are taxonomy-aligned within the meaning
of the EU’s new gas economic activities. E.ON did not, or did not
fully, meet the criteria for taxonomy alignment in the 2023
financial year.

In June 2023, as part of the sustainable finance package, the
European Commission published the Delegated Taxonomy Act on
environmental objectives 3 to 6 (“Sustainable use and protection
of water and marine resources,” “Transition to a circular economy,”
“Pollution prevention and control,” and “Protection and restoration
of biodiversity and ecosystems”). At the same time, it published
amendments to the delegated act on the first two environmental
objectives and the delegated act on disclosure. The amendments
include additional economic activities, adjustments to some DNSH
criteria, and changes resulting from the publication of the
delegated act on environmental objectives 3 to 6.

The economic activities described in the Delegated Act on
environmental objectives 3 to 6 are, comparatively, not relevant
for E.ON as an energy company. At the present time, only the
activities listed in environmental objective 3 relating to water
supply and municipal wastewater treatment (2.1 and/or 2.2),
which are likewise covered by environmental objectives 1 and 2
(activities 5.1 and 5.2, and/or 5.3 and 5.4), fall within E.ON’s
business activities. To avoid double counting, we continue to
assign the economic activities to environmental objective 1,
“Climate change mitigation.” This confirms the significant

contribution that E.ON’s business model makes to climate
protection.

Of the activities relevant to E.ON as a whole, the following
activities are of particular importance. By conducting them the
Group makes a substantial contribution to climate change
mitigation and/or to the sustainable use and protection of water
and marine resources:

• Distribution of electricity

• Distribution networks for renewable and low-carbon gases

• Data-driven solutions for GHG emissions reductions

• Construction, extension and operation of water collection,

treatment and supply systems

• Installation, maintenance and repair of instruments and devices
for measuring, regulation and controlling energy performance of
buildings

• Cogeneration of heat/cool and power from bioenergy

• Power generation by means of photovoltaic technology

• District-heating distribution

• Infrastructure for personal mobility

• Generation of heat/cooling from renewable non-fossil gaseous

and liquid fuels

E.ON reports on activities that already contribute to the
environmental objectives or are activities that enable climate
protection or represent transition activities.

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E.ON’s taxonomy-eligible and taxonomy-aligned economic
activities are conducted predominantly at the Energy Networks
and Customer Solutions segments. E.ON is an energy company,
and thus, its activities in these segments are extensively covered
by the economic activities listed in the EU taxonomy.

business activities actually meet the taxonomy’s technical
screening criteria and create suitable records for this purpose.

E.ON conducts the analysis of taxonomy-alignment in detail as
follows:

The figures for taxonomy-relevant economic activities were
determined with reference to the FAQ documents published by the
European Commission to date, which address questions of
interpretation regarding Article 8 of the EU Taxonomy Regulation,
and under application of the amendments to the Delegated Act on
disclosure of taxonomy requirements published in 2023.

E.ON’s Approach
E.ON has had a regular process in place since 2021 to ensure the
appropriate assessment of all taxonomy requirements related to
the EU’s environmental objectives 1, “Climate change mitigation,”
and 2, “Climate change adaptation.” The approach also applies to
the taxonomy requirements to be considered for the first time in
2023 in relation to EU environmental objectives 3 to 6
(“Sustainable use and protection of water and marine resources,”
“Transition to a circular economy,” “Pollution prevention and
control,” and “Protection and restoration of biodiversity and
ecosystems”). E.ON’s business activities are continually mapped to
the relevant taxonomy criteria. We consider revenues to be the
main criterion; that is, E.ON’s activities are allocated to the
taxonomy’s economic activity with which revenues are or are
supposed to be generated. The next step is an alignment check in
which the mapping’s finding are analyzed and checked in
interviews, expert discussions, and workshops with the relevant
operational contacts and experts from the specialist departments
of the segments and business units as well as major Group
companies to determine whether corresponding taxonomy criteria
for the economic activities are actually met. The check’s findings
are documented for any taxonomy-relevant economic activities
identified. This documentation is collated in an EU taxonomy
manual that is binding for all E.ON companies. The companies use
the manual’s specifications to determine the extent to which their

Assessment of Substantial Contribution
Compliance with the technical screening criteria is generally
assessed and documented individually for each economic activity
and at the companies on a decentralized basis. If the criteria
provide for simplifications that allow compliance with the criteria
to be assessed at the level of the entire economic activity, an
operating segment, or for the entire Group, E.ON makes use of
them.

Assessment of Doing No Significant Harm (“DNSH”)
The DNSH criteria mainly refer to compliance with legal
requirements or, in the case of the “circular economy” objective, to
fundamental aspects of the economic activity. DNSH conformity is
therefore to be assessed at the level of an economic activity on a
regular basis. DNSH conformity regarding EU environmental
objective 2, “Climate change adaptation,” is identified and assessed
in E.ON’s established risk management process. For this purpose,
E.ON makes use of existing systems and processes for financial
and non-financial risk management, which it has expanded to
include EU taxonomy matters. Details can be found in the Risks
and Chances Report.

Assessments of Minimum Safeguards
E.ON uses established processes and documentation at the Group
level to assess and comply with the minimum safeguards. The
Group ensures that the EU taxonomy’s requirements are fully met
in this regard by means of appropriate guidelines and related
training and monitoring measures. E.ON companies are required to
implement such policies and guidelines in a binding manner.
Responsibility for compliance lies with the respective companies.

Taxonomy-Aligned Economic Activities
The assessment included a review of all activities relevant for E.ON
to determine whether they make a substantial contribution to
climate change mitigation (and/or to the sustainable use and
protection of water and marine resources) and meet the criteria
contained in Article 3 of the EU taxonomy. The review identified
the following economic activities as taxonomy-aligned on a
proportional basis:

4.1 Electricity generation using solar photovoltaic technology

4.3 Electricity generation from wind power

4.5 Electricity generation from hydropower

4.9 Transmission and distribution of electricity

4.10 Electricity storage

4.14 Transmission and distribution networks for renewable and

low-carbon gases

4.15 District heating/cooling distribution

4.16

Installation and operation of electric heat pumps

4.19 Cogeneration of heating/cooling and power from renewable

non-fossil gaseous and liquid fuels

4.20 Cogeneration of heating/cooling and power from bioenergy

4.21 Production of heating/cooling from solar thermal energy

4.23 Production of heating/cooling from renewable non-fossil

gaseous and liquid fuels

4.24 Production of heating/cooling from bioenergy

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5.1 Construction, extension, and operation of water collection,

treatment, and supply systems (and/or 2.1 water supply)

6.13 Infrastructure for personal mobility, cycle logistics

6.15 Infrastructure enabling low-carbon road transport and

public transport

7.4 Installation, maintenance, and repair of charging stations for
electric vehicles in buildings (and parking spaces attached to
buildings)

7.5

Installation, maintenance and repair of instruments and
devices for measuring, regulation and controlling energy
performance of buildings

8.2 Data-driven solutions for GHG emissions reductions

E.ON identified no economic activities in 2023 that make a
significant contribution to environmental objective 2, “Climate
change adaptation,” or to environmental objectives 4 to 6. If
economic activities make a significant contribution to
environmental objective 1, “Climate change mitigation,” as well as
to environmental objective 3, “The sustainable use and protection
of water and marine resources,” we assign the more significant
contribution to climate change mitigation.

Substantial Contribution to Climate Change Mitigation
By definition, electricity generation from wind and solar as well as
run-of-river hydropower plants makes a substantial contribution
to climate change mitigation within the meaning of the taxonomy.
No other criteria for the assessment of their substantial
contribution to climate protection need to be assessed. The same
applies to the installation of devices such as solar panels, smart
energy meters, and electric-vehicle charging stations in buildings.

E.ON’s activities to establish infrastructure for personal eMobility
meet the required criteria for creating low-carbon road transport.

E.ON’s electricity networks make a substantial contribution to
climate change mitigation within the meaning of the taxonomy,
since they are downstream distribution networks, and thus part of
the European interconnected system.

E.ON operates a large number of heating networks. This activity is
in principle taxonomy-eligible. Some of these heating networks are
“efficient” within the meaning of the taxonomy’s criteria. This
means that they transmit at least 50 percent renewable heat, at
least 50 percent waste heat, at least 75 percent CHP heat, or at
least 50 percent of a combination of these energy sources. Such
heating networks thus make a substantial contribution to climate
protection.

In addition, E.ON operates water supply systems, the majority of
which make a substantial contribution to climate change
mitigation because they meet the energy-efficiency criterion (less
than 0.5 kWh per cubic meter of water) and/or the leakage
threshold of 1.5. For water supply systems that do not meet these
criteria, investments made in the financial year to improve their
energy efficiency and/or leakage rate by at least 20 percent are
classified as taxonomy-aligned investments. The significant
contribution to the sustainable use and protection of marine
resources is made through the operation of water supply systems
that provide consumers with high water quality and at the same
time contribute to the efficiency of water resources. These water
supply systems revenues are classified as taxonomy-aligned if the
investments enabled them to meet the aforementioned criteria for
taxonomy-aligned water supply systems.

In the case of gas networks, in particular investments in existing
infrastructure that increase the possibility of blending hydrogen
and other low-carbon gases were classified as taxonomy-aligned.
Pilot projects to establish dedicated hydrogen infrastructure were
also assessed to be taxonomy-aligned. This also applies to
investments and operating expenses related to the detection
and/or prevention of methane leaks.

E.ON operates a large number of CHP and heat generation plants.
Depending on the energy source used, there are various sets of
criteria, some of which are met by E.ON plants. Plants fueled solely
by natural gas will be classified as taxonomy-eligible under the
new sets of criteria but are not classified as taxonomy-aligned at
present.

Investments in the development of broadband data infrastructure
are classified as taxonomy-aligned because the data and analyses
provided by them lead directly to the reduction of GHG emissions
at E.ON or its customers.

Do No Significant Harm
Protecting assets against the physical impacts of climate change
(“Climate change adaptation”) is economically relevant for E.ON
and is therefore factored into investment decisions. Climate-
related risks and opportunities are also recorded in E.ON’s risk
management system. The Risks and Chances Report contains
more information.

The criteria for the EU’s environmental objective 3, “sustainable
use and protection of water and marine resources,” mainly refer to
legal and regulatory requirements in the energy sector.
Compliance with these requirements is a prerequisite for obtaining
construction and operating permits. The same applies in principle
to the criteria for the EU’s environmental objective 5, “pollution
prevention and control.” Details can be found in the Environmental
Management chapter.

There are general criteria for the environmental objective 4,
“transition to a circular economy,” such as long durability, easy
disassembly, or reparability. Most components are designed for a
very long lifespan, are recyclable, and still have economic value at
the end of their useful life (such as steel, aluminum, and copper).
Such components of assets can be recycled within the E.ON Group
or sold to third parties for further use.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

With regard to the EU’s environmental objective 6, “protection and
restoration of biodiversity and ecosystems,” E.ON, where required,
conducts environmental impact assessments and comparable
assessments, which are a key prerequisite for obtaining permits to
build and operate assets. Furthermore, one of E.ON’s important
ambitions is to conduct ecological corridor management or to
convert to this approach.

Compliance with the Minimum Safeguards
E.ON is committed to respecting human rights in all business
processes. To prevent human rights violations, E.ON adheres to
external standards and defines its own principles and policies.
E.ON’s Human Rights Policy Statement explicitly acknowledges
the United Nations’ International Bill of Human Rights and the
International Labour Organization’s Declaration on Fundamental
Principles and Rights at Work and the latter’s fundamental
conventions. The statement also makes reference to E.ON’s own
policies, such as the Supplier Code of Conduct and the Code of
Conduct for employees. The standards for human rights, work
conditions, environmental protection, and compliant business
practices that E.ON requires its suppliers to meet are defined in the
Supplier Code of Conduct.

Conducting a periodic risk assessment serves to indicate potential
threats. E.ON promotes compliance with its standards and
minimize potential threats by means of numerous measures and
processes. The principle focus of these activities at E.ON’s own
business is on occupational safety and fair work conditions.
Additional information about the assurance of a responsible supply
chain, compliance and anti-corruption, and tax is contained in the
chapters on these topics.

EU Taxonomy Key Figures
E.ON’s reporting applies the indicators defined in Article 8 of the
Taxonomy Regulation: taxonomy-eligible and taxonomy-aligned
investments, revenues, and operating expenses. All business
operations identified at E.ON are assigned to precisely one of the

EU taxonomy’s economic activities in order to prevent double
counting.

E.ON reports the following three indicators for investments,
revenues, and operating expenses:

1. Taxonomy-eligible activities as a ratio of the total amount

shown in the E.ON Group’s Consolidated Financial Statements
prepared according to IFRS

2. Taxonomy-aligned activities as a ratio of the total amount

shown in the E.ON Group’s Consolidated Financial Statements
prepared according to IFRS

3. Taxonomy-aligned activities as a ratio of taxonomy-eligible

activities

Investments
Investments were calculated on a gross basis; that is, without
taking into account revaluations or depreciation and amortization
or impairment charges. They consist of investments in non-current
tangible and intangible assets (fixed assets), including assets
acquired in asset deals (recorded directly) and share deals
(investment amount determined by the purchase-price allocation).
More specifically:

• Property, plant, and equipment pursuant to IAS 16.73 (e) (i) and

(iii)

• Intangible assets pursuant to IAS 38.118 (e) (i)

• Investment property pursuant to IAS 40.76 (a) and (b), IAS

40.79 (d) (i) and (ii)

• Agriculture pursuant to IAS 41.50 (b) and (e)

• Leasing pursuant to IFRS 16.53 (h)

Group investments (denominator) consist of additions to fixed
assets plus additions to property, plant, and equipment, and
intangible assets from business combinations, which are shown in
Note 15 to the Consolidated Financial Statements. The numerator
is equal to, respectively, taxonomy-eligible, or taxonomy-aligned
proportion of Group investments.

Of E.ON’s taxonomy-eligible investments, property, plant, and
equipment accounted for €5,066 million, intangible assets for
€325 million, and right-of-use assets for €472 million.
€4,941 million of property, plant, and equipment, €325 million of
intangible assets, and €468 million of right-of-use assets are
taxonomy-aligned. In each case the lion’s share went toward our
electricity networks (economic activity 4.9).

In accordance with the taxonomy’s specifications, E.ON also
includes non-cash-effective investments, but not additions to
financial assets. The taxonomy’s definition of investments differs
from E.ON’s internal performance indicator for investments,
namely cash-effective investments. E.ON therefore reconciles
total investments pursuant to the taxonomy to the investments
disclosed in the “Financial Situation” section of the Business
Report:

Reconciliation to Cash-effective Investments
€ in millions
EU taxonomy: total investments
./. Right-of-use assets
./. Non-cash-effective investments
+ Cash-effective financial investments
./. Investment subsidies
Cash-effective investments

Q1–Q4 2023
8,049
-811
-971
411
-257
6,421

At E.ON, all investments in the 2023 financial year fall under
category a) of the Annex to the Taxonomy Regulation. An
investment plan according to category b) or investments according
to category c) do not exist at E.ON.

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Revenues
Revenues correspond to net sales excluding electricity and energy
taxes as shown in the Consolidated Income Statements of the
Integrated Annual Report. These figures are included in the
denominator, whereas the corresponding taxonomy-eligible
and/or -aligned revenues are shown in the numerator.

Operating Expenses
The denominator for operating expenses is to be specified in
accordance with the taxonomy requirements. Ecologically
sustainable operating expenses are to include individually
attributable, non-capitalized expenses for research and
development, building renovations, short-term leasing,
maintenance and repairs, other direct expenses in connection with
the maintenance of assets, and other expenses necessary for the
maintenance of ecologically sustainable economic activities. At
E.ON, this mainly includes expenditures for repair and
maintenance performed by third parties, which are reported under
cost of materials and other operating expenses. The numerator
reflects, respectively, the taxonomy-eligible or taxonomy-aligned
proportion of operating expenses.

Below we report on Group-wide EU taxonomy investments,
operating expenses, and revenue by segment. Details on the EU
taxonomy key figures by economic activity are presented in detail
under EU Taxonomy in the Other Information section.

Investments
In the 2023 financial year,73 percent of core-business
investments were within the scope of the EU taxonomy
(taxonomy-eligible). Taxonomy-aligned activities accounted for
98 percent of taxonomy-eligible investments.

The Energy Networks segment made a significant contribution.
About 82 percent of its investments were taxonomy-eligible;
nearly all of them were taxonomy-aligned. At roughly €4.5 billion,
the largest contribution came from E.ON’s electricity distribution
networks, which are part of the European interconnected system.
They continually integrate renewable generating facilities, thereby
propelling the energy transition in Europe and connecting
customers to sustainable energy. E.ON invested significantly more
in taxonomy-aligned electricity networks compared with the
previous year. This trend is supported by the digitalization of
E.ON’s networks through the expansion of fiber-optics and broad-
band technology. E.ON invested €289 million in this area in the
year under review.

In addition, €382 million of investments in gas networks were
taxonomy-aligned and thus increased significantly relative to the
prior year. In Germany in particular, these investments serve to
establish and expand hydrogen infrastructure or enable hydrogen
to be admixed to E.ON’s existing gas networks. €77 million of the
investments in our water networks were taxonomy-aligned.

The Customer Solutions segment’s taxonomy-aligned investments
totaled €0.4 billion. Its businesses that install, maintain, and
devices for measuring, regulating, and controlling buildings’ overall
energy efficiency represented its main contributor to the EU
taxonomy. The expansion of its assets for district heating
distribution as well as its energy-infrastructure business, which
encompasses biofuel-fired electricity and heat cogeneration, as
well as investments in plants for heat production with combined
feedstocks are likewise covered by the taxonomy. The
procurement and sale of power and gas are not covered by the
taxonomy. E.ON’s distributed solar generating facilities
contributed additional amounts. We invested in solar projects in
2023, for example in Germany.

EU Taxonomy Investments1,2
€ in millions

Taxonomy-eligible investments

Taxonomy-

Not
taxonomy-

Total
5,362
501
-
5,863

aligned
19
110
-
129

aligned
5,342
391
-
5,734

Q1–Q4 2023
Energy Networks
Customer Solutions
Corporate Functions/Other
E.ON Group
1.–4. Quartal 2022
Energy Networks
Customer Solutions
Corporate Functions/Other
E.ON Group
1Based on EU taxonomy regulations (includes non-cash items, excludes financial investments).
2Due to the changes in segment reporting, the previous year's figures have been adjusted accordingly.

4,074
310
-
4,384

4,120
345
-
4,465

46
35
-
81

%
Taxonomy-
eligible
(of total)
82
36
-
73

EU taxonomy ratios
%
%
Taxonomy-
Taxonomy-
aligned
aligned
(of eligible)
(of total)
100
82
78
28
-
-
98
71

91
39
-
82

90
35
-
80

99
90
-
98

Total
6,529
1,384
136
8,049

4,518
887
72
5,477

Not
taxonomy-
eligible
1,168
883
136
2,187

398
542
72
1,012

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

Overall, the proportion of the respective taxonomy-aligned as well
as taxonomy-eligible investments by economic activity are at the
prior-year level, whereas investments in absolute terms—and thus
also taxonomy-aligned and taxonomy-eligible investments in
absolute terms—rose significantly relative to 2022.

As with investments, the majority of aligned expenses resulted, as
in the prior year, from maintenance activities for E.ON’s electricity
network (€754 million). Smaller amounts related to gas
distribution networks, particularly to prevent or reduce methane
leaks (€28 million).

Operating Expenses
In the 2023 financial year, E.ON had around €1.3 billion in
operating expenses that meet the definitions of the EU taxonomy.
€393 million of these expenses were not taxonomy-eligible, and
€855 million were taxonomy-aligned. This corresponds to around
97 percent of taxonomy-eligible expenses.

The business with decentralized electricity and/or heat/cooling
generation plants accounted for more than €20 million.
€30 million was related to the installation and maintenance of
renewable technologies at the Customer Solutions segment.

The proportion of the respective taxonomy-aligned as well as
taxonomy-eligible operating expenses by economic activity are
therefore at the prior-year level.

EU Taxonomy Operating Expenses1
€ in millions

Taxonomy-eligible operating expenses

Q1–Q4 2023
Energy Networks
Customer Solutions
Corporate Functions/Other
E.ON Group
Q1–Q4 2022
Energy Networks
Customer Solutions
Corporate Functions/Other
E.ON Group

Taxonomy-
aligned
797
58
-
855

Not
taxonomy-
aligned
1
24
-
26

831
80
-
911

6
21
-
27

Not
taxonomy-
eligible
217
99
77
393

185
96
59
340

Total
798
83
-
881

837
101
-
938

1Due to the changes in segment reporting, the previous year's figures have been adjusted accordingly.

%
Taxonomy-
eligible
(of total)
79
45
-
69

EU taxonomy ratios
%
%
Taxonomy-
Taxonomy-
aligned
aligned
(of eligible)
(of total)
100
79
70
32
-
-
97
67

82
51
-
73

81
40
-
71

99
79
-
97

Total
1,015
182
77
1,274

1,022
197
59
1,278

E.ON Integrated Annual Report 2023

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Revenues
As in the prior year, in 2023 the Customer Solutions segment
again generated the majority of E.ON’s external sales. However,
revenues from the sale of electricity and gas to end-customers are
not covered by the EU taxonomy. As expected, therefore, only
19 percent of external sales were taxonomy-eligible.

Nearly all taxonomy-eligible revenues were also taxonomy-
aligned, of which the vast majority—€16.2 billion—related to
electricity transmission fees in E.ON’s distribution networks. E.ON
reports €12.6 billion as external taxonomy-aligned revenues in the
Energy Networks segment and €3.9 billion in the Customer
Solutions segment from sales revenues for network charges
insofar as these were attributable to E.ON’s own distribution
network territory.

EU Taxonomy Revenues1
€ in millions

Taxonomy-eligible revenues

Taxonomy-

Not
taxonomy-

aligned
74
399
-
473

Total
12,671
5,457
-
18,128

aligned
12,598
5,058
-
17,655

Q1–Q4 2023
Energy Networks
Customer Solutions
Corporate Functions/Other
E.ON Group
Q1–Q4 2022
Energy Networks
Customer Solutions
Corporate Functions/Other
E.ON Group
1Due to the changes in segment reporting, the previous year's figures have been adjusted accordingly.

10,058
4,737
-
14,795

10,113
5,130
-
15,243

55
393
-
448

E.ON generated additional taxonomy-aligned revenues of around
€0.8 billion relating, as in the prior year, to the energy efficiency of
buildings and renewable energy technologies, such as the
installation, maintenance, and repair of photovoltaic systems, heat
pumps, and solar-powered systems for water heating.

Our energy infrastructure business, which generates decentralized
electricity and/or heat/cooling from a variety of sources generated
around €0.1 billion in aligned revenues.

The proportions of the respective taxonomy-aligned as well as
taxonomy-eligible revenues by economic activity are therefore at
the prior-year level.

%
Taxonomy-
eligible
(of total)
72
8
-
19

EU taxonomy ratios
%
%
Taxonomy-
Taxonomy-
aligned
aligned
(of eligible)
(of total)
99
72
93
8
-
-
97
19

Total
17,616
64,624
11,446
93,686

Not
taxonomy-
eligible
4,945
59,167
11,446
75,558

3,914
69,743
26,760
100,417

14,027
74,873
26,760
115,660

72
7
-
13

72
6
-
13

99
92
-
97

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Sustainable Finance 

Debt capital represents an important financing source for the E.ON
Group to implement its strategy. Sustainability aspects play an
increasingly important role in many international investors’
decision for or against a particular investment. Accordingly, E.ON
has also systematically considered sustainability in the structuring
of its financing as well, both in debt and credit markets.

In 2019 E.ON presented its first Green Bond Framework under
which it issues green bonds. E.ON issued its first green bonds that
same year. In 2021 E.ON then became the first company to fully
align its revised Green Bond Framework not only with the ICMA
Green Bond Principles—the current market standard for green
bonds—but also with the EU Taxonomy. The taxonomy defines
which economic activities are classified as environmentally
sustainable, thereby setting a Europe-wide standard for
sustainable investment. E.ON had €10.15 billion of green bonds
outstanding at year-end 2023, making it Germany’s second-
largest issuer of green bonds. The green bonds issued in the year
under review accounted for €2.5 billion of this amount. E.ON
secured over €1.5 billion of green bond financing in January 2024.
E.ON intends to cover more than 50 percent of its annual financing
requirements with green bonds.

E.ON’s Green Bond Framework focuses on sustainable projects in
the categories Electricity Networks, Renewable Energy, Energy
Efficiency, and Clean Transportation, both in E.ON’s electricity
network and customer solutions businesses. E.ON’s Green Bond
Portfolio, a portfolio of qualifying assets in line with the Green
Bond Framework, consisted of assets worth €24.2 billion at year-
end 2023. E.ON’s electricity networks in Germany and Sweden
account for the largest share.

Alongside its focus on green bonds, E.ON’s corporate financing
includes a sustainability-linked €3.5 billion syndicated credit
facility that was concluded in 2019. After two options to extend
the facility were exercised, its term ends in October 2026. The
facility’s credit margin is linked, among other things, to the
development of certain ESG ratings. This gives us additional
financial incentives to pursue a sustainable corporate strategy. The
ESG ratings are set by three renowned agencies: ISS ESG, MSCI
ESG Research, and Sustainalytics. The facility serves as a reliable
and sustainable liquidity reserve for the E.ON Group and can be
drawn on as needed.

ESG Ratings of E.ON 

E.ON has been included in numerous ESG ratings for years. In
addition, our regional and national sustainability activities regularly
receive awards. In the new compensation system for Management
Board members, ESG ratings are a component of the E.ON
Sustainability Index and represent a performance criterion that is
taken into account in the Management Board’s long-term variable
compensation. In the ESG ratings that are important to us, E.ON
has received predominantly good scores for years. In 2023 E.ON
significantly improved its score in two important ESG ratings. The
Sustainability Channel at eon.com presents the most relevant and
current results. The next section takes a closer look at four ratings
that are relevant for E.ON.

CDP Climate Change
In 2023 CDP once again placed E.ON on its A List for
environmental reporting. E.ON’s current rating is in the Leadership
Level, placing E.ON among the top 346 companies out of nearly
15,000 assessed to make the A List in 2023.

ISS ESG
International Shareholder Services (“ISS”) upgraded E.ON from a
C+ rating to B-, giving us Prime status. This means E.ON meets ISS
ESG’s high standards for sustainability performance in its industry.
The letter ratings range from D- to A+. In addition, E.ON’s decile

rank is 3. The decile rank indicates in which decile of its industry
(tenth of the total number) a company’s rating falls. The ranks go
from 1 (best: a company’s rating is in the top decile of its industry)
to 10 (lowest).

MSCI ESG Research
MSCI is one of the world’s best-known index providers. MSCI uses
its own ESG ratings to create its sustainability indices. MSCI gave
E.ON a rating of AA. Its rating scale extends from CCC to AAA.

Sustainalytics
Sustainalytics is a global leader in providing ESG and corporate
governance research and ratings. In 2023 E.ON significantly
improved its Sustainalytics ESG Risk Rating. After receiving a
score of 23.2 points in the medium risk category in the prior year,
E.ON now has 17.6 points and is assessed to be low risk. E.ON is
therefore ranked fourth out of the 101 companies rated in its
subindustry.

ESG Asset Management and Pension Assets 

E.ON links the provision and investment of pension assets to
sustainable purposes: by financing a company pension plan and by
considering sustainability criteria when making decisions about
how the plan’s assets are invested. E.ON draws, for example, on
the Norwegian State Pension Fund’s research and embargo lists in
order to avoid questionable investments. We also select asset
managers whose investment processes systematically take ESG
aspects into account. In addition, E.ON continually develops its
own ESG approach to the investment process in order to adapt to
the latest developments at the Company and in the market.

E.ON Integrated Annual Report 2023

Combined Group Management Report

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Business Report

Macroeconomic and Industry Environment

Macroeconomic Environment
Supply chain bottlenecks and other repercussions of the Covid-19
pandemic along with the effects of geopolitical tensions caused by
the war in Ukraine and associated uncertainties adversely affected
the global economy in 2023. High inflation and interest rate
increases by central banks also had a negative impact on the global
economy in the year under review. This is reflected in forecasts for
gross domestic product (“GDP”) growth. The OECD predicts global
GDP growth of 2.9 percent in 2023, which is below the 3.3
percent growth recorded in 2022.

Economic Developments in the EU
Economic development in the eurozone could not escape the
influence of interest rate increases and inflation either, which was
reflected in GDP. The OECD predicts eurozone GDP growth of just
0.6 percent in 2023. The European Central Bank (“ECB”)
responded to persistently high inflation throughout the eurozone
in 2022 by reversing its monetary policy in mid-2022 and raising
its key interest rate—by 0.5 percentage points—for the first time in
16 years. Additional rate increases followed, bringing the key
interest rate to 2.5 percent at the end of December 2022. The ECB
continued this interest rate policy in 2023 and raised the key
interest rate in several steps (September 2023) to 4.5 percent. The
ECB’s purpose is to make loans more expensive, dampen demand,
and counteract high inflation rates in order to bring inflation back
down to a medium-term target of 2 percent. The increase in the
key interest rate had the desired effect on inflation. The inflation
rate in the eurozone was 5.3 percent in July 2023 but fell to 2.9
percent in December.

In addition, generally mild weather conditions last winter made it
possible to conserve gas reserves in underground storage facilities
compared with prior years. The EU-wide inventory level on April 1,
2023, was still around 56 percent (prior year: only around 27
percent). This helped enable facility operators to fill their storage
facilities by the start of the six-month winter season on October 1,
2023, because demand and thus pressure on wholesale prices
were correspondingly lower. Gas storage facilities were already
around 96 percent full at this date and were still around 86
percent full at year-end.

At the time of this report’s publication, reliable statements about
reductions in customers’ consumption for the winter as a whole
were not yet possible due to weather factors. In the winter of
2022/23, households in Germany, for example, reduced their
consumption by about 10 percent (which is equal to the estimated
temperature-independent reduction) and in the United Kingdom
by around 15 percent. On balance, conservation helped lower
demand on wholesale markets and also had a price-dampening
effect.

At the beginning of 2023, the month-ahead contract for one MWh
of gas at TTF, a virtual trading point in the Netherlands, cost €77.
Prices stabilized at around €35 by year-end. The trend for power
was similar. The year-ahead contract for one MWh of baseload
power cost €214 at the start of the year compared with around
€100 at year-end. This means that the overall price level is
currently below the level before the start of the war in Ukraine but
remains almost twice as high as the long-term average before the
start of the energy crisis.

The main factors behind the currently still elevated price levels are
the aforementioned uncertainty regarding weather for the winter
as a whole, residual geopolitical risks, and competition for LNG on
the global market. By contrast, the anticipated expansion of major
producers’ gas liquefaction capacity in the years ahead could lead
to declining LNG prices in the medium term.

Economic Developments in Germany
The OECD’s June 2023 economic forecast for Germany still
considered stagnation possible for the reporting year, whereas
Germany’s GDP shrank by 0.2 percent (according to the OECD) or
by 0.3 percent (according to the German Federal Statistical Office).
Interest-rate increases constitute a key reason for this
development. Their intent was to counteract inflation, but they
also dampened economic activity.

Inflation, which averaged 6.6 percent in 2023 according to the
OECD, affected the economy and households throughout the year.

Development of Energy Prices
Wholesale energy prices declined significantly over the course of
2023 compared with the prior year. The already-achieved and
continued expansion of liquefied natural gas (“LNG”) import
capacity diminished the direct impact of the ongoing war in
Ukraine on Europe’s supply situation. At the end of last winter’s
heating period in March 2023, 48 terminals were already in
operation in Europe and additional terminals were being planned.

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→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

Energy Policy and Regulatory Environment

Global
The questions of by what means and how fast climate change
needs to be slowed continued to dominate the global energy policy
debate in 2023.

At the UN Climate Change Conference COP28 in Dubai in
December 2023, heads of state and government from almost 200
countries agreed on a final document. The document contains key
statements on energy. Like the EU and the German delegates at
COP28, E.ON believes that a clear plan for phasing out fossil fuels
is lacking at the global level. The decarbonization of the energy
system will thus remain a critical challenge to achieve the 1.5°C
target.

Europe
In view of the energy crisis last year triggered by the war in
Ukraine and the increasingly tangible consequences of climate
change, EU institutions initiated or enhanced crisis-management
measures.

In March 2022 the European Commission therefore adopted a
new Temporary Crisis and Transition Framework for state aid to
further support investments in key sectors for the transition to a
climate-neutral economy and to tackle the energy crisis. The
framework allows member states, for example, to introduce
additional measures that apply until the end of 2025 and to
support the deployment of renewable energy, storage facilities,
and systems to decarbonize industrial processes, including
hydrogen. Under certain conditions, member states can align aid
granted to beneficiaries in other countries outside the EU. In
addition, the framework allows member states to support
companies amid the energy crisis through various measures that
were valid until December 31, 2023. In addition, the Commission
extended until June 2024 some of the measures to grant small
subsidies and to offset exceptionally high energy prices for
companies most affected by the crisis.

The European Commission also proposed to extend two other
emergency regulations. The first concerns Regulation (EU)
2022/2578 on the market-correction mechanism for gas. The
regulation introduces a sort of pressure relief valve to protect the
economy from excessively high prices. The second concerns the
emergency regulation on permit-granting procedures (EU)
2022/2577, which introduces simplified rules for the granting of
permits in order to accelerate the expansion of renewables and
associated network infrastructure. The measures it contains are
also contained in the amended Renewable Energy Directive
(“RED”) and, after the emergency regulation’s expiration, will
therefore become permanent. The European Council approved the
European Commission’s proposals on extending the emergency
regulations.

The European Commission published a proposal on March 16,
2023, to amend the directive and regulation on the European
internal power market. The changes to the power market design
aim to (i) introduce long-term stimulus for new investments (such
as through bilateral agreements for differences and power price
agreements), (ii) protect consumers (such as by means of certain
price regulation requirements in times of crisis), and (iii) introduce
new regulatory requirements to further promote flexibility. The
European Council and the European Parliament adopted their
respective negotiating positions during the year and reached an
agreement on December 14. The new power market design is
supposed to take effect and be further implemented in 2024.

In addition, numerous measures to accelerate renewables
expansion and the decarbonization of industry in the EU were
initiated or continued.

The Net Zero Industry Act (“NZIA”) aims, for example, to support
the production of technologies that are decisive for the
achievement of climate neutrality. The NZIA is intended to simplify
the legal framework for the manufacture of these technologies
and thus to enhance the competitiveness of Europe’s net-zero
technology industry.

In addition, the delegated regulations on green hydrogen—(EU)
2023/1184 and (EU) 2023/1185—were published in the Official
Journal of the European Union on June 20, 2023. The first
regulation establishes three conditions (additionality, temporal
correlation, and geographical correlation between an electrolyser
and the installation generating renewable energy for it) and
exceptions, under which hydrogen-based fuels can be classified as
renewable fuels of nonbiological origin (“RFNBO”). The second
regulation contains a method for calculating RFNBO’s life cycle
greenhouse gas emissions.

Directive (EU) 2023/2413 on support for energy from renewable
sources was published on October 18, 2023. It introduces a new
minimum of 42.5 percent for energy renewables’ share of the EU’s
gross energy consumption as well as sector targets. Furthermore,
member states must establish requirements for accelerating
approvals processes for renewables facilities and for network
expansion.

In addition, the European Council and the European Parliament
agreed on a gas package. In particular, the new EU gas directive
updates consumer-protection mechanisms for gas customers and
adjusts the modalities of network access and network planning to
reflect the current context, which is characterized by increased use
of low-carbon gases. In the future, a distinction is to be made
between, and different rules established for, hydrogen distribution
system operators (“DSOs”) and hydrogen transmission system
operators (“TSOs”). The (vertical) unbundling rules require
infrastructure to be separated from competitive activities in a way
that is similar to existing unbundling rules for gas. Consequently,
less strict rules will apply to DSOs for hydrogen as well. In
addition, only gas and hydrogen TSOs will have to operate as
legally separate network companies. Exceptions are possible at the
national level, however, for TSOs that submit a cost-benefit
analysis that is confirmed by their national regulatory agency.
DSOs will be exempted from horizontal unbundling.

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

On November 14, 2023, the European Council and the European
Parliament reached an agreement on a methane emissions
regulation. In particular, the regulation introduces new obligations
for gas infrastructure operators to conduct periodic checks to
detect and eliminate leaks, to identify the sources of methane
emissions, and to repair or replace the components in question.
The Commission must, within 12 months, issue an implementing
act that specifies minimum detection limits.

In addition, the new EU Directive 2023/1791 on energy efficiency
was published on September 13, 2023. It contains ambitious
targets for reducing the EU’s energy consumption by at least 11.7
percent by 2030 relative to the EU reference scenario. Member
states must stipulate their respective contribution and achieve
new annual energy savings that gradually increase to 1.9 percent
by 2030. On December 7, 2023, the European Council and
European Parliament reached an agreement on revising the energy
performance of buildings directive, which introduces new
requirements for decarbonizing buildings, including ambitious
targets for the availability of charging infrastructure for electric
vehicles and for readiness for zero-emissions buildings.

The European Commission published an EU Grid Action Plan on
November 29, 2023. The plan is a non-legislative announcement
that outlines additional strategic initiatives to foster the
modernization of power networks and thus to support Europe’s
climate-protection and renewables targets. The initiative’s
principle aim is to simplify the funding and approval of network
modernization.

Germany
In mid-2022 the Bundestag passed the Easter package to
accelerate renewables expansion. It amended a variety of
legislation, such as the Renewable Energy Sources Act (German
abbreviation: EEG), to increase the target for the proportion of
renewable energy in gross power consumption from 50 percent to
80 percent by 2030. The focus is on expanding solar energy.
Compared with the previous target of 100 GW for 2030, installed

photovoltaic capacity is to be more than doubled to over 215 GW,
and onshore wind capacity is to be increased from 71 GW to 115
GW. In 2023 the annual target of 9 GW net additions to
photovoltaic capacity was already met in September. At the end of
the third quarter of 2023, additions to onshore wind capacity
amounted to around 50 percent of the annual target of 3.9 GW.

was amended by the Act on the Restart of the Digitalization of the
Energy Transition, establishes a timetable with binding targets
through 2030. Metering point operators are obliged to
successively equip connected consumption points with smart
metering systems. The law took effect in May 2023.

The number of requests for new network connections for feed-in
systems has increased considerably in recent years. In view of the
above-described accelerated implementation of climate-protection
efforts, this figure is likely to continue to rise sharply. For example,
the number of PV requests received by E.ON power distribution
system operators doubled from around 120,000 in 2021 to about
240,000 in 2022. Requests increased a further 70 percent to
about 400,000 in 2023. Additional measures for standardization,
digitalization, and automation of network connection processes are
necessary to enable network connection requests to be processed
in a timely manner.

In line with its corporate strategy, E.ON endorses the German
federal government’s initiatives to accelerate renewables
expansion. We also support accelerated renewables growth by the
necessary expansion of our smart distribution networks. The
significant increase in momentum and the resulting need for
additional investments reinforce E.ON’s growth strategy. The
Forecast Report describes our investment plans in particular for
2024.

To achieve policymakers’ expansion targets, the mechanisms for
accelerating planning and approval procedures in particular must
also have an impact, and the additional measures from the Pact for
Accelerating Planning, Approval, and Implementation between the
federal and state governments from early November 2023 must
be implemented promptly.

The amended Section 14a of the Energy Industry Act (German
abbreviation: EnWG) stipulates that, in the future, controllable
consumption devices like electric heat pumps and wallboxes for
electric cars are be controlled on a network-oriented basis and, in
return, are to receive network fee reductions. This mechanism
does not replace the upgrading of distribution networks, but
supplements it temporarily. In late November 2023 the Federal
Network Agency (German abbreviation: BNetzA) adopted a
corresponding regulation.

In June 2023 the German federal government also initiated the
amendment of the Climate Protection Act. Originally, the Climate
Protection Act provided for annual emissions reduction targets for
the energy, industry, transport, buildings, agriculture, and waste-
management sectors. The current amendment stipulates, among
other things, that climate targets are to be met on a forward-
looking, multiyear, and cross-sector basis rather than retroactively
by sector. Emissions reduction targets for individual sectors are
therefore to be eliminated.

The need to completely convert the power sector to renewables in
a short space of time and to make this conversion efficient, secure,
and fast requires the modification of Germany’s power market
design. For this reason, in 2023 the Federal Ministry for Economic
Affairs and Climate Protection launched the Platform for a
Climate-Neutral Power System to serve as a discussion forum on
the future design of the power market. Stakeholders from
parliament, the European Commission, science, business, and civil
society are involved.

The German federal government took steps to accelerate the
rollout of smart energy meters by adopting the Metering Point
Operation Act (German abbreviation: MsbG). The MsbG, which

In order to achieve the goal of fully decarbonizing the heat supply
by 2045, the Building Energy Act, which aims to convert heating

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

technologies, and the Heat Planning Act, which addresses heating
networks and forms the basis for municipal heat planning, were
passed in 2023. The Building Energy Act stipulates that, in the
future, new heating systems may only be installed if at least 65
percent of the heat they generate comes from renewable sources.
This applies to new buildings from January 2024 onward, with
transitional periods through 2028 for existing buildings. The
regulations are accompanied by, among other things, income-
dependent subsidies. The Heating Planning Act initially foresees
that 30 percent of the heat in existing heating networks is to be
renewable. At the same time, the federal states are obliged to
work toward ensuring that local authorities draw up heating plans
by 2028 at the latest. The plans specify which areas are to be
supplied with distributed or district heating and how renewable
energy and waste heat can be used. How the methane emissions
regulation adopted by the EU will affect gas networks cannot yet
be fully assessed, because the specific requirements for gas
network operators have not yet been conclusively defined.

The Energy Industry Act (German abbreviation: EnWG) was
amended several times in 2023. Various topics were addressed, in
particular the implementation of the ECJ’s ruling on the
independence of the Federal Network Agency (German
abbreviation: BNetzA) and the development of a hydrogen core
grid, including its financing. Central to the implementation of the
ECJ ruling is the formal upgrading of the BNetzA, which is now
solely responsible for setting the conditions for network access
and network fees (power, gas, hydrogen). In a motion for a
resolution passed parallel to the main EnWG amendment, it was
announced that additional regulations for networks connection are
anticipated.

Following the latest cost review, the BNetzA confirmed the cost
basis of E.ON’s distribution network operating companies for the
fourth regulatory period for power, although the final
determinations are still pending and are expected in the first
quarter of 2024. In 2023 the BNetzA also set some of the
important regulatory parameters for the fourth regulatory period

(2023 to 2027 for gas, 2024 to 2028 for power). During the year
the BNetzA, among other things, announced an increase in the
interest rates for the cost of debt and cost of equity component of
the capital cost surcharge for new investments in power and gas
networks from 2024 onward. This is intended to take account of
current interest-rate developments and also to provide incentives
for new investments in network expansion to propel the energy
transition. However, these determinations only represent
temporary regulations that are limited to the duration of the fourth
regulatory period. E.ON’s distribution network operating
companies filed an appeal to the capital cost of debt part within
the capital cost surcharge for new investments in power and gas
networks from 2024 onward with the aim of extending the
regulation to 2023, in particular in order to take sufficient account
of the development of interest rates for cost of debt in 2023. In
addition, E.ON’s network operators are considering whether to file
a similar objection to the equity portion.

However, some important regulatory parameters for the fourth
regulatory period—for example, the general and individual
productivity factors for gas and power—have not yet been finalized
or are still under discussion or consultation with the BNetzA. The
determination of the regulatory return on equity (known as the
cost of equity I interest rate) for the fourth regulatory period is also
not yet legally binding, because the BNetzA has filed an appeal
with the Federal Court of Justice (German abbreviation: BGH)
against a ruling issued in August 2023 by the Düsseldorf Higher
Regional Court, which had ruled in favor of network operators in
their first appeal in their original lawsuit. A ruling by the BGH is
expected some time in 2024.

regulatory period (for gas from 2028 onward, for power from
2029 onward) for DSOs and gas TSOs, as well as the need for
short-term adjustments to gas networks’ useful operating
lifetimes. The BNetzA has planned a discussion process that will
last until the end of 2025. Existing laws will continue to apply until
further notice. Actual changes for network operators will only arise
when the results are codified into a formally binding legal
framework. With regard to the white paper for the fifth regulatory
period, this is expected to take place in 2026.

Regulations were established for a core network for hydrogen. It is
to be about 10,000 kilometers long and initially serve for transport
and supply to large customers. The core network was planned
alongside the legislative process and is expected to be approved by
the Federal Network Agency in the first quarter of 2024 so that
pipelines can be built in a timely manner. State protection (using
the amortization approach) is planned for the investments of
network operators in the core network.

Considerable efforts in all legal and economic areas remain
necessary for Germany to achieve its expansion targets for
photovoltaics. Amendments to the Renewable Energy Sources Act
(German abbreviation: EEG) in particular are intended to pave the
way for achieving the expansion targets defined in EEG 2023 in a
way that is compatible with the energy system as a whole. The
German federal government intends for the draft legislation to
reconfigure the subsizes for special solar systems (agri PV, floating
PV, moor PV, and parking PV), facilitate the expansion of rooftop
photovoltaic systems, simplify tenant-produced power, and enable
the communal supply of buildings. It also aims to facilitate plug-in
solar systems and accelerate grid connection.

As announced, the BNetzA is planning a review of the current
regulatory framework with regard to the rapidly increasing
demands placed on network operators by the energy and climate
transition. In early 2024 the BNetzA published a white paper
containing initial proposals and presented it to energy-industry
representatives and other stakeholders. The white paper focuses
on refinements to the regulatory framework for the fifth

As relief for gas and heat customers, a reduced VAT on gas and
heat deliveries applied in 2023. It expires on March 31, 2024.

On November 15, 2023, the Federal Constitutional Court ruled
that the law on the second supplementary budget for 2021 is
unconstitutional. The ruling directly affects the Climate and

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

Transformation Fund (German abbreviation: KTF). If the ruling’s
principles are applied to the other special funds, the Economic
Stabilization Fund (German abbreviation: WSF) is also indirectly
affected. As a result, the German government did not, as planned,
extend state funding by means of power and gas price caps until
the end of March 2024; instead, they expired at the end of 2023.

In terms of (cyber) security, Germany’s implementation of the
resilience of critical entities directive (“CER Directive”), the
measures for high common level of cyber security (“NIS2
Directive”), the European Commission’s network code on
cybersecurity focused on avoiding unnecessary bureaucracy and
double regulation. E.ON has largely implemented the planned
security measures.

vulnerable households. The aim is to enable 165,000 such
households to pay their energy bills. It was announced that the
2024 budget foresees no general price increases for 2024. After
the cabinet’s resignation in the summer and the elections held in
late November 2023, the focus is on forming a new government.

Italy
Italy‘s government extended existing support measures for end-
customers through the end of 2023 (a reduction in general
network charges, social grants for vulnerable customers, and a
VAT reduction for natural gas only). However, the government
already expressed its willingness to limit the support measures for
vulnerable customers in 2024 in order to reduce costs for public
budgets.

Alongside these measures, the liberalization process continued in
order to abolish the protective conditions for Italy’s 9 million
nonvulnerable customers. In the power sector, auctions are being
held for nonvulnerable household end-customers who are to be
transferred to the free market. In the gas sector, regulated prices
for nonvulnerable customers were abolished from the start of
2024.

The government also presented a first updated version of its
National Energy and Climate Plan, which is to be based on a
realistic and technology-neutral approach. In addition, additional
decarbonization measures are being discussed or are in the
approval phase. The aim is to support the development of
renewable energy facilities and projects and thus to help Italy
achieve its climate targets for 2030.

United Kingdom
The U.K. government provided billions of pounds of financial
support to help households and businesses cope with the worst
effects of high wholesale prices in the first quarter of 2023.
Wholesale energy prices have since fallen from their peak, but bills
are still almost double what they were before the energy crisis.
Energy affordability remains a key policy concern, as some
customers are finding it increasingly difficult to bear the costs. In
response, a winter subsidy was introduced. Despite the challenges
of energy affordability, the U.K. government remains committed to
its net-zero emissions target and increased subsidies in some
areas, such as heat pumps, by 50 percent to accelerate adoption.
In other areas, however, the pace of change slowed slightly, as
evidenced by the recent decision to postpone the ban on the sale
of new gasoline and diesel cars by five years to 2035, although the
target that 80 percent of all new cars will be electric by 2030
remains in place.

Netherlands
In 2023 the Dutch government adopted a €11.2 billion support
package for energy costs. Together with energy suppliers, it
introduced a price cap against rising energy prices. The energy
sector established a €50 million emergency fund for the most

heating prices rose sharply, mainly because of greater demand for
Nordic biomass due to lower imports from Russia. The rise in
district heating prices attracted a lot of media attention and led to
a policy debate on stricter price regulation. The government
continued to focus on ensuring a robust electricity system with
nuclear energy as the basis for the power supply. It took numerous
initiatives during the year to develop nuclear energy with the clear
aim of building new reactors.

East-Central Europe
Although the European Commission recommended that Romania
abolish the mechanism for capping energy prices by the end of
2023, current law calls for power and gas prices to remain capped
for both households and nonhouseholds until the end of March
2025. Consumers are increasingly submitting requests to become
prosumers, a trend supported by high Romanian government and
EU funding. In addition, new renewables projects are being
developed. In view of these factors, government authorities
recognize the need to reshape the role of utilities and limit the
capacity of new renewables projects that will be connected to
power networks.

Slovakia adopted a number of measures in 2023 to reduce the
impact of high energy prices on households and businesses. These
included in particular i) reimbursing additional costs to cover
network losses for households and other power end-consumers at
the level of 2022, ii) granting a subsidy to companies and
administrative entities to cover additional costs resulting from
energy price increases, and iii) establishing a guaranteed price for
the power component for households in 2023 and 2024.

Sweden
At the beginning of 2023, Sweden‘s government provided
financial support for households and companies that had been
most affected by high power prices in the fourth quarter of 2022
and the first quarter of 2023. Prices have since stabilized, and the
government announced no plans for financial support for the
winter of 2023/2024. While power prices have stabilized, district

The Czech Republic introduced a package of temporary crisis
measures in 2023 to shield end-consumers—including households,
businesses, and large industrial customers—from high energy
prices. In addition, the government is revising social subsidy
programs in order to combat energy poverty. Customers
responded to recent market volatility and available government
financial aid by embracing self-generation, resulting in a

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

considerable increase in the demand for solar systems, energy
storage devices, and heat pumps. This put significant pressure on
the availability of network connection capacity. At the same time,
the government continued to revise the market design and define
measures to support the Czech Republic on its path to carbon
neutrality.

The Hungarian government’s energy policy for 2023 focused on
keeping prices low for households and strengthening power
networks in order to integrate more renewable energy. A Ministry
of Energy and a Ministry for EU Affairs were also established in
2023. The latter is coordinating and planning Hungary’s EU
Council presidency in the second half of 2024.

Special Events in the Reporting Period

War in Ukraine Continues to Create Significant
Macroeconomic Uncertainty and Impacts the Energy Sector
E.ON’s priority since the beginning of the war in Ukraine in early
2022 has been to secure the energy supply in these anxious times.
E.ON’s power, gas, and heat networks in various regions of Europe
are running stably, even in the current situation.

The war’s repercussions also have implications for E.ON’s
business. In particular, volatile commodity prices and energy
demand behavior impact our operations and are described in
greater detail below in the sections entitled “Earnings Situation”
and “Financial Situation.”

E.ON Successfully Issues Bonds in 2023
In 2023 E.ON successfully issued four bonds totaling €3.3 billion:

• €800 million bond that matures in January 2028 and has a

coupon of 3.5 percent (January 2023)

• €1 billion green bond that matures in January 2035 and has a

coupon of 3.875 percent (January 2023)

• €750 million green bond that matures in March 2029 and has a

coupon of 3.75 percent (August 2023)

Statements as an associated company, to RheinEnergie, which
increased its share in RheinEnergie from 20 to 24.2 percent.

• €750 million green bond that matures in August 2033 and has a

coupon of 4 percent (August 2023).

Changes in Segment Reporting
E.ON’s segment reporting was adjusted effective January 1, 2023.
PreussenElektra’s generation activities were originally planned to
end on December 31, 2022. Consequently, Non-Core Business has
been reported under Corporate Functions/Other from the
beginning of 2023. In addition, owing to the discontinuation of
operations and the dismantling of all nuclear power plants, the
associated expenses and income are reported under non-operating
expense/income.

Earthquakes in Southeastern Turkey and Northern Syria
Southeastern Turkey and northern Syria experienced several major
earthquakes on February 6, 2023, and in the days afterward. They
resulted in electricity and gas service outages. At E.ON, Enerjisa
Enerji’s supply territory was affected. Network repair activities are
still ongoing, and the power supply has largely been restored. All of
Enerjisa Üretim’s power plants are fully operational. From today’s
perspective, there have been no material implications for E.ON’s
asset, financial, and earnings situation.

Conclusion of a Future Consolidation Agreement with ZSE
Shareholders
On April 8, 2022, the shareholders of Západoslovenská energetika
a.s. (“ZSE”) and of Východoslovenská energetika Holding a.s.
(“VSEH“), E.ON SE, and the Slovak Republic, concluded a Future
Consolidation Agreement to combine ZSE and the VSEH Group.
The agreement provides, among other things, for 100 percent of
VSEH shares to be transferred to ZSE, the sale of all VSEH
subsidiaries to ZSE, and the implementation of corporate law
changes at VSEH.

The transfer of VSEH shares to ZSE results in ZSE being VSEH’s
sole shareholder (and thus also shareholder of the VSEH
subsidiaries). The ownership interests in ZSE remains unchanged;
that is, E.ON has a 49 percent stake in ZSE and the Slovakian state
a 51 percent stake. The new ZSE shareholder agreement
essentially corresponds to the shareholder agreement that has
been in force before. After closing of the agreement, ZSE continues
to be accounted for using the equity method in E.ON’s
Consolidated Financial Statements, while the business activities of
VSEH, which was previously fully consolidated, are now integrated
in this joint venture.

Consortium Agreement with RheinEnergie
The consortium agreement concluded on June 29, 2021, between
Westenergie AG, a fully consolidated subsidiary of the E.ON
Group, and RheinEnergie AG was finalized effective March 31,
2023, after the conditions imposed by the Bundeskartellamt
(German Federal Cartel Office) were met. The closing of the
transaction enabled Westenergie and RheinEnergie to merge
shareholdings in individual municipal utilities into rhenag. It also
resulted in the initial consolidation of AggerEnergie GmbH in the
E.ON Group. In addition, Westenergie transferred 20 percent of
the shares of Stadtwerke Duisburg, which, pursuant to IFRS 5,
was previously included in E.ON’s Consolidated Financial

The transaction was originally expected to be closed by the end of
2022. Accordingly, the VSEH Group has been presented as a
disposal group in accordance with IFRS 5 since December 31,
2021. The last condition precedent was fulfilled on June 12, 2023.
On November 23, 2023, all closing conditions were formally
met–in particular, the signing of the relevant documents such as
the agreement on the transfer and contribution of the shares and
the amended and restated shareholders' agreement as well as
registration by the Slovak Central Depositary of Securities of the
transfer of all of the VSEH’s shares to ZSE and publication of all
relevant documents with the Central Register of Contracts. As of
this date, the VSEH Group was deconsolidated and the value of the

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

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→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

investment in ZSE was increased accordingly by the fair value of
these VSEH shares.

The Temporary Continued Operation of Germany’s
Remaining Nuclear Power Plants (“NPPs”) Ended on April
15, 2023
The authorization of Emsland, Neckarwestheim 2, and Isar 2 NPPs
(the latter of which is operated by PreussenElektra, an E.ON
subsidiary) to operate expired at the close of April 15, 2023. By
continuing to operate in the winter of 2022–2023, Germany’s
NPPs made a valuable contribution toward securing the energy
supply amid the crisis. Isar 2 NPP was taken offline at the close of
April 15, 2023, and its reactor was shut down. The dismantling of
the entire facility has begun.

PreussenElektra earned power-market proceeds for about 2 TWh
since January 1, 2023. These proceeds must be set against the
additional costs arising from the extension and the provisions of
the Act on the Introduction of an Electricity Price Cap and on the
Amendment of Other Provisions of Energy Law (German
abbreviation: “StromPBG”) on the Taxation of Electricity Market
Revenues, which took effect on December 24, 2022. E.ON plans to
take the proceeds from continued operation and use them for
investments in the implementation of energy transition.

Erich Clementi is the New Chairman of the E.ON SE
Supervisory Board
At a constitutive meeting of the Supervisory Board following the
Annual Shareholders Meeting on May 17, 2023, Erich Clementi
was elected to succeed Karl-Ludwig Kley. Erich Clementi has been
Deputy Chairman of the E.ON SE Supervisory Board since 2016.
Karl-Ludwig Kley decided not to stand for reelection to the
Supervisory Board. In addition, the E.ON SE Supervisory Board
now consists of 16 members. The previous size of 20 members
had applied temporarily and for a limited period following the
innogy takeover.

Middle East Conflict: Hamas Attack on Israel
Following Hamas's attack on Israel on October 7, 2023, and the
subsequent counterattacks, the conflict has not caused a major
regional war, and its impact on energy markets is currently
minimal. A team from E.ON's Innovation Hub is based in Israel. We
will continue to support it through our collaboration and
investments. The escalation of the Middle East conflict has so far
not had any noteworthy impact on E.ON's business activities.

Supervisory Board to Decide on Patrick Lammers’s
Successor
Prior to the Supervisory Board meeting in mid-December 2023,
the E.ON SE Supervisory Board and Patrik Lammers jointly agreed
not to extend his contract, which runs until July 31, 2024. Patrick
Lammers will continue to perform his role as Chief Operating
Officer–Commercial until the end of his contract term. The
Supervisory Board will decide on his successor in the course of
2024.

Subsequent Events

Changes to Business Model
On September 11, 2023, the Management Board approved a new
management concept for the E.ON Group. Effective from January
1, 2024, this entails a change in the definition of certain operating
segments in accordance with IFRS 8 and the reallocation of the
current goodwill amounts for all operating segments affected by
the changes and reporting goodwill as of January 1, 2024. The
Management Board's decision was regarded as an opportunity to
test the goodwill of the existing operating segments for
impairment. The impairment tests carried out as of September
2023 found no indication of impairment. Following the entry into
force of the new management concept, the goodwill amounts
reallocated as of January 1, 2024, are subject to the provisions of
IAS 36 on impairment testing. In the new Energy Infrastructure
Solutions segment, there may be an impairment risk of up to a
mid-triple-digit million euro amount. The Business Model chapter
contains more information.

E.ON Successfully Issues €1.5 Billion in Green Bonds at the
Start of the Year
In early January E.ON successfully issued two bonds totaling €1.5
billion:

• €750 million green bond that matures in January 2031 and has

a coupon of 3.375 percent

• €750 million green bond that matures in January 2036 and has

a coupon of 3.75 percent.

These bond transactions have enabled E.ON to lay the foundation
for covering its funding requirements for 2024.

Arbitration Proceedings in Spain
E.ON SE, E.ON Finanzanlagen GmbH, and E.ON Iberia Holding
GmbH are plaintiffs in arbitration proceedings against the
Kingdom of Spain. In the arbitration proceedings, the three
companies are asserting claims for damages for changes to Span’s
remuneration scheme for renewable energy. The arbitration
proceedings have been pending at the International Center for
Settlement of Investment Disputes (“ICSID”) since they were
registered on August 10, 2015. On January 18, 2024, an
arbitration tribunal awarded the companies damages totaling
approximately €0.3 billion. As the legal process has not yet been
exhausted and there are therefore still uncertainties regarding the
proceedings’ final outcome, E.ON is not reporting a receivable or
any associated income in its 2023 financial statements. Instead, it
discloses a contingent receivable.

Termination of the Operating Concession for a Wastewater
Treatment Plant in Croatia
A concession agreement for the operation of a wastewater
treatment plant exists between Zagrebacke otpadne vode d.o.o, a
company consolidated in the E.ON Group using the equity method,
and the City of Zagreb. By majority resolution of the city assembly
on January 25, 2024, the City of Zagreb exercised its contractually
agreed-on right to unilaterally terminate this concession. This

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(prior year: €1.05) and thus surpassed the forecast range of €1.03
to €1.11 (previously: €0.88 to €0.96).

Further growth in the regulated asset base due to additional
investments was Energy Networks’ main contribution to this
positive earnings performance. In addition, the recovery of the
energy market environment in 2023 led to significant reductions in
redispatch expenditures in Germany. The calming of the market
environment and the stabilization of price levels on procurement
markets in nearly all E.ON regions contributed to a relative
earnings improvement at Customer Solutions. The adjustment of
energy procurement to current market conditions in the United
Kingdom, Germany, and the Netherlands was another positive
earnings factor. Higher risk provisions for bad debt losses was a
countervailing factor.

Cash-effective investments of €6.4 billion were significantly above
the prior-year figure of €4.8 billion and also above the target figure
of roughly €6.1 billion, which had been adjusted in November
(previously: roughly €5.9 billion). Energy Networks’ investments of
€5.2 billion surpassed the forecast figure of €4.6 billion. They were
accelerated in particular in the fourth quarter owing to capacity
increases and went mainly toward network infrastructure projects.
Customer Solutions’ investments of €1.1 billion were as forecast.
Corporate Functions/Other’s investments were in line with the
forecast figure of €0.1 billion.

results in a six-month period from the date of receipt of the
cancellation letter dated February 2, 2024, in which the city either
acquires the individual assets from Zagrebacke otpadne vode d.o.o
or the stake held by E.ON in this company. The manner in which
the sale will take place had yet to be determined by the City of
Zagreb at the time of the Consolidated Financial Statements’
preparation. The transactions’ financial effects cannot yet be
reliably estimated at the time of preparation either.

Business Performance

E.ON’s operating business delivered a positive performance in the
2023 financial year, and E.ON surpassed its forecast for key
performance indicators.

External sales in the 2023 financial year decreased by 19 percent
to €93.7 billion. This performance is mainly attributable to lower
sales volume due to customers’ energy conservation and portfolio
streamlining. Lower price levels on wholesale markets also had an
adverse impact on sales.

The E.ON Group’s adjusted EBITDA of €9.4 billion was €1.3 billion
above the prior-year figure of €8.1 billion and above the forecast
range of €8.6 to €8.8 billion, which had been adjusted in August
2023 (previously: €7.8 to €8 billion). Energy Networks recorded
adjusted EBITDA of €6.6 billion, which was likewise above the
adjusted forecast range of €6.3 to €6.5 billion (previously: €6 to
€6.2 billion). Customer Solutions’ adjusted EBITDA of €2.8 billion
was also above the adjusted forecast range of €2.3 to €2.5 billion
(previously: €1.8 to €2 billion). Adjusted EBITDA at Corporate
Functions/Other of -€0.1 billion was in line with expectations.

Adjusted net income of €3.1 billion was likewise above the prior-
year figure of €2.7 billion and the forecast range of €2.7 billion to
€2.9 billion, which had been adjusted in August 2023 (previously:
€2.3 to €2.5 billion). Earnings per share, which are based on
adjusted net income, amounted to €1.18 in the year under review

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Energy Networks

Wheeling Volume

Germany
2022

58.3

61.1

2023

Billion kWh
Fourth quarter
Power
Network loss, station use,
etc.
Gas
Full year
Power
Network loss, station use,
etc.
7.0
159.8
Gas
1VSEH of Slovakia is only included until its transfer to ZSE (end of November).

6.9
149.8

2.0
44.1

2.0
43.8

220.5

229.6

2023

9.9

0.3
0.0

33.3

1.0
0.0

Sweden
2022

East-Central Europe/Turkey
2022

2023 ¹

8.9

0.2
0.0

33.7

1.0
0.0

14.0

0.7
13.1

53.9

2.8
40.0

14.4

0.8
12.8

57.0

3.2
43.0

2023

85.0

3.0
57.2

307.7

10.7
189.8

Total
2022

81.6

3.0
56.6

320.3

11.2
202.8

Power and Gas Wheeling Volume
Overall, power and gas wheeling volume in the year under review
fell relative to the prior year. The main reason for the declining
energy wheeling volume was the war in Ukraine and associated
energy-conservation measures.

By contrast, fourth-quarter wheeling volume was slightly above
that of the prior-year quarter. This is attributable to lower price
levels on commodity markets.

System Length and Network Customers
E.ON’s power system in Germany was about 694,000 kilometers
long, slightly above the prior-year figure (about 691,000
kilometers). At year-end it had about 14.9 million network
customers for power in its service territory (prior year: 14.8
million). E.ON’s gas system was almost unchanged at about
99,000 kilometers (prior year: about 98,000 kilometers), as was
the number of network customers‚ 1.9 million.

The length of E.ON’s power system in Sweden was 142,000
kilometers (prior year: about 141,000 kilometers). The number of
customers in the power distribution system was about 1.1 million,
unchanged from the prior year.

E.ON operates electricity networks in East-Central Europe/Turkey
with a total system length of roughly 274,000 kilometers (prior
year: about 275,000 kilometers) and supplies, as in the prior year,
about 8.4 million network customers. Gas networks operated by
E.ON were roughly 50,000 kilometers long (prior year: 49,000
kilometers). The number of gas network customers is about 2.8
million (prior year: about 2.7 million).

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Customer Solutions

Power and Gas Sales Volume
Power sales in the 2023 financial year declined by 58 billion kWh
to 203.7 billion, gas sales as well by 82.3 billion kWh to 380.6
billion kWh.

Power and gas sales to the customer groups decreased. The
primary reasons for the decline in power and gas sales in almost all
of E.ON’s regional markets were portfolio streamlining in line with
our B2B strategy, mild weather, as well as crisis-related energy
conservation and the associated decline in consumption.

Customer Numbers
Customer Solutions’ fully consolidated companies had a total of
about 34.7 million customers at year-end 2023, less than the
prior-year figure of 35.9 million. The number of customers in
Germany declined slightly to 14.2 million (prior year: 14.4 million)
because competition became keen again. In the United Kingdom
the number of customers declined slightly to 8.9 million owing to
our strategic focus on customers that deliver strong sales and
portfolio streamlining as part of our B2B strategy (prior year: 9.1
million). At 3.9 million, the number of customers in the
Netherlands was almost at the prior-year level (4 million). The
total number of customers in the other regions declined from 8.4
million to

7.8 million, in part because of return to more competition in the
wake of the energy crisis. Customer losses relate to both power
and gas customers.

Power Sales

Billion kWh
Fourth quarter
Residential and SME
I&C
Sales partners
Customer groups
Wholesale market
Total
Full year
Residential and SME
I&C
Sales partners
Customer groups
Wholesale market
Total
1VSEH of Slovakia is only included until its transfer to ZSE (end of November).

2023

Germany
2022

United Kingdom
2022

2023

The Netherlands
2022

2023

8.4
4.0
3.1
15.5
7.6
23.1

31.1
19.3
10.8
61.2
33.7
94.9

9.0
7.2
4.9
21.1
19.0
40.1

33.2
27.6
18.8
79.6
53.5
133.1

5.0
5.1
0.9
11.0
1.7
12.7

18.3
21.0
2.9
42.2
7.5
49.7

4.6
5.7
0.8
11.1
1.2
12.3

19.9
26.1
2.4
48.4
6.0
54.4

1.6
0.5
–
2.1
3.7
5.8

4.4
1.6
–
6.0
13.3
19.3

1.7
0.6
–
2.3
3.2
5.5

5.3
2.6
–
7.9
11.2
19.1

2023 ¹

5.8
2.5
0.7
9.0
1.6
10.6

20.2
9.9
2.7
32.8
7.0
39.8

Other
2022

6.0
4.7
1.2
11.9
2.3
14.2

23.6
16.2
5.5
45.3
9.8
55.1

2023

20.8
12.1
4.7
37.6
14.6
52.2

74.0
51.8
16.4
142.2
61.5
203.7

Total
2022

21.4
18.4
6.9
46.7
25.6
72.3

82.0
72.6
26.7
181.3
80.4
261.7

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Gas Sales

Billion kWh
Fourth quarter
Residential and SME
I&C
Sales partners
Customer groups
Wholesale market
Total
Full year
Residential and SME
I&C
Sales partners
Customer groups
Wholesale market
Total

1VSEH of Slovakia is only included until its transfer to ZSE (end of November).

2023

13.1
5.3
3.7
22.1
62.2
84.3

36.8
19.4
12.0
68.2
119.3
187.5

Germany
2022

United Kingdom
2022

2023

The Netherlands
2022

2023

13.5
8.8
6.5
28.8
30.9
59.7

41.6
24.9
19.9
86.4
92.8
179.2

12.0
1.8
2.9
16.7
1.8
18.5

36.0
7.6
8.3
51.9
14.5
66.4

11.1
2.4
2.6
16.1
10.2
26.3

39.9
9.9
7.2
57.0
95.9
152.9

5.9
3.4
–
9.3
13.1
22.4

17.0
12.2
–
29.2
56.0
85.2

6.3
3.6
–
9.9
13.1
23.0

19.9
14.4
–
34.3
41.1
75.4

2023 ¹

9.5
1.6
–
11.1
1.0
12.1

28.5
6.3
0.3
35.1
6.4
41.5

Other
2022

10.6
3.1
0.1
13.8
3.9
17.7

33.0
11.0
0.7
44.7
10.7
55.4

2023

40.5
12.1
6.6
59.2
78.1
137.3

118.3
45.5
20.6
184.4
196.2
380.6

Total
2022

41.5
17.9
9.3
68.7
58.1
126.8

134.4
60.2
27.8
222.4
240.5
462.9

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External Sales

€ in millions
Energy Networks
Germany
Sweden
ECE/Turkey
Customer Solutions
Germany
United Kingdom
The Netherlands
Other

Corporate Functions/Other1
Consolidation
E.ON Group
1Prior-year figures were adjusted owing to the transfer of Non-Core Business.

2023
4,989
3,908
242
839
16,557
6,968
5,601
1,036
2,952
2,895
2
24,443

Fourth quarter
+/- %
25
25
-8
38
-23
-17
-17
-45
-34
-66
0
-28

2022
3,995
3,123
264
608
21,502
8,380
6,770
1,890
4,462
8,570
0
34,067

2023
17,616
13,609
986
3,021
64,624
25,314
23,969
4,201
11,140
11,445
1
93,686

2022
14,028
11,185
1,002
1,841
74,872
29,518
25,422
5,227
14,705
26,760
0
115,660

Full year
+/- %
26
22
-2
64
-14
-14
-6
-20
-24
-57
0
-19

Earnings Situation

External Sales
Effective as of the Interim Report for the first half of 2023, we
changed our presentation of sales. For the sake of clarity and in
order to provide more useful commentary, the Combined Group
Management Report only discloses external sales and only
comments on the change in external sales with regard to the
segments’ performance.

The E.ON Group’s external sales in 2023 declined by €22 billion to
€93.7 billion (prior year: €115.7 billion).

Energy Networks’ sales of €17.6 billion were €3.6 billion above
the prior-year figure. This development is attributable in particular
to the significant increase in power price levels in 2022. The
growth in the regulated asset base continued to have a positive
impact on sales. The increase also resulted from higher tariffs
charged by transmission system operators.

Customer Solutions’ sales declined by €10.3 billion to €64.6
billion. The decrease is mainly attributable to a decline in sales
volume in nearly all E.ON regions due to customers’ energy
conservation as well as portfolio streamlining. The successive
passthrough to end-customers of crisis-driven high procurement
costs had a countervailing effect. It had the largest impact in
Germany and the Czech Republic. The settlement of derivatives
also adversely affected sales owing to sharply lower commodity
prices relative to the prior year.

Sales recorded at Corporate Functions/Other of €11.4 billion were
about €15 billion under the prior-year figure. The decrease is
mainly attributable to lower price levels compared with the prior
year on commodity transactions conducted by E.ON Energy
Markets, our central commodity procurement unit.

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Other Line Items from the Consolidated Statement of
Income
The Consolidated Statement of Income can be found in the
Consolidated Financial Statements.

Own work capitalized of €1,334 million was 34 percent above the
prior-year level (€997 million). It consisted predominantly of
network investments as well as ongoing and completed IT
projects.

Other operating income totaled €38,888 million in 2023 (prior
year: €73,193 million). Income from derivative financial
instruments alone declined by €32,961 million year on year to
€37,273 million, principally because of the development of prices
on commodity markets during the course of the year. Income from
currency-translation effects (€578 million) was €275 million
below the prior-year figure (€853 million). Corresponding amounts
resulting from currency-translation effects and derivative financial
instruments are recorded under other operating expenses. Income
from the sale of equity interests and securities totaled €151
million (prior year: €999 million). The prior-year figure mainly
consists of an €810 million book gain on the partial disposal of
Westconnect GmbH.

Costs of materials of €64,228 million were significantly below the
prior-year level (€108,627 million). The sharp decline mainly
reflects price developments on commodity markets. As part of our
long-term procurement strategy, the rise in energy prices in the
first half of the prior year continued, now with a time delay, to lead
to higher contractually agreed-on procurement costs, whereas
price levels in 2023 largely moved lower. A countervailing effect
resulted from the fact that forward procurement contacts, which
under IFRS are accounted for as derivative financial instruments,
are, at the time of settlement, adjusted to the market price at the
time of delivery, which has a corresponding impact on costs of
materials. Effects from the marking to market of commodity
derivatives are recorded under other operating income. In addition,
costs of materials include a change in provisions for pending

transactions. These provisions are mainly recorded for contracted
sales transactions that are not subject to IFRS 9 (failed own-use)
transactions that are commercially part of a portfolio that is
partially offset by procurement transactions that are accounted for
as derivative financial instruments.

Personnel costs of €6,010 million were €573 million above the
prior-year figure (€5,437 million). The change is mainly
attributable to an increase in the number of employees and to pay
increases under collective-bargaining agreements. This was
partially offset by lower expenditures for pensions.

Depreciation charges increased from €3,378 million in the prior
year to €3,514 million. This is principally attributable to higher
depreciation charges on property, plant, and equipment due to
additional investments in the network business. Countervailing
effects mainly involved intangible assets due to the absence of
depreciation charges on residual power output rights. In addition,
there were higher impairment charges on property, plant, and
equipment and intangible assets.

Other operating expenses of €59,548 million were €12,188
million below the prior-year figure (€71,736 million), in particular
because expenditures relating to derivative financial instruments
(including currency-translation changes) declined by €13,318
million to €53,345 million. Expenditures relating to currency-
translation effects increased by €194 million to €718 million.

Income from companies accounted for under the equity method of
€478 million was significantly above the prior-year level (€279
million). The increase resulted mainly from higher earnings from
equity interests in Germany and Slovakia.

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Adjusted EBITDA
The E.ON Group’s adjusted EBITDA rose by €1,311 million in the
2023 financial year to €9,370 million (prior year: €8,059 million).

Energy Networks’ adjusted EBITDA increased by €1,181 million to
€6,640 million (prior year: €5,459 million). In Germany higher
investments were the driver of this positive performance. They led
to a continued growth in the regulated asset base. In addition, the
recovery of the market environment of the energy-industry
contributed to a significant reduction in the costs for redispatch.
These cost reductions are temporary in nature and, because of
regulatory mechanisms, will be credited to network customers in
subsequent years. Adjusted EBITDA in Sweden and at East-Central
Europe/Turkey received additional support in all regions except
Hungary from lower costs for network losses during 2023 as well
as catch-up effects for only partly covered costs for network
losses incurred in prior years. The weak Swedish krona and Turkish
lira had an off-setting effect. Earnings were also adversely
impacted by lower wheeling volume resulting from a reduction in
energy consumption. Effects relating to fluctuations in wheeling
volume are essentially temporary in nature and, in most countries,
are recovered in subsequent years through regulatory
mechanisms.

Adjusted EBITDA at Customer Solutions rose by €1,121 million to
€2,807 million (prior year: €1,686 million). The increasing
stabilization of the energy-industry market environment, which
had been under considerable strain in the prior year, was among
the contributing factors and had a positive impact on earnings. The
stabilization of price levels on procurement markets contributed to
an earnings improvement relative to the prior year in nearly all
E.ON markets. In addition, energy procurement in the United
Kingdom, Germany, and the Netherlands was adjusted to current
market conditions, and one-off effects from prior periods had a
positive impact as well along with non-recurring regulation effects
in the United Kingdom. A decline in sales volume and risk
provisions for bad debts had a countervailing effect in nearly all

Adjusted EBITDA

€ in millions
Energy Networks
Germany
Sweden
ECE/Turkey
Customer Solutions

Thereof: Energy Infrastructure Solutions ("EIS")

Germany
United Kingdom
The Netherlands
Other

Corporate Functions/Other1
Consolidation
E.ON Group
1Prior-year figures were adjusted owing to the transfer of Non-Core Business.

2023
1,784
1,356
118
310
-182
146
-67
-161
-46
92
-26
5
1,581

Fourth quarter
+/- %
28
30
28
21
-168
-28
-124
47
-140
-46
-109
600
-19

2022
1,390
1041
92
257
269
203
285
-302
115
171
291
-1
1,949

2023
6,640
5,034
576
1,030
2,807
525
993
810
227
777
-79
2
9,370

2022
5,459
4153
452
854
1,686
568
760
208
324
394
918
-4
8,059

Full year
+/- %
22
21
27
21
66
-8
31
289
-30
97
-109
150
16

regions. In addition, effects from mild weather in the Netherlands
were less pronounced than in the prior year. The in some cases
tense situation in Romania in 2022 in the Other unit eased as a
result of improvements in the regulatory scheme. In addition,
wider margins and effects from portfolio management led to
earnings increases in the Other unit’s other markets. Adjusted
EBITDA at Energy Infrastructure Solutions’ (“EIS”) business of
providing on-site energy solutions was below the prior year due to
adverse currency-translation effects and the non-recurrence of
positive one-off effects.

Adjusted EBITDA recorded at Corporate Functions/Other declined
by about €1,000 million to -€79 million (prior year: €918 million),
mainly because of the absence of earnings streams from
PreussenElektra, due to the cessation of operations and the
dismantling of all power stations. PreussenElektra’s earnings are
recorded under non-operating expense/income effective the
beginning of 2023.

E.ON generates a large portion of its adjusted EBITDA in very
stable businesses. Regulated, quasi-regulated, and long-term
contracted businesses accounted for the overwhelming proportion
of E.ON’s adjusted EBITDA in 2023.

E.ON’s regulated business consists, among other things, of
operations in which revenues are largely set by law and based on
costs. The earnings on these revenues are therefore extremely
stable and predictable. E.ON’s quasi-regulated and long-term
contracted business consists of operations in which earnings have
a high degree of predictability because key determinants (price
and/or volume) are largely set for the medium to long term.
Examples include the operation of industrial customer solutions
with long-term supply agreements and the operation of heating
networks.

Merchant activities are all those that cannot be subsumed under
either of the other two categories.

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Adjusted Net Income
Adjusted net income increased from €2,728 million to €3,068
million. The improvement is attributable to our good operating
performance in the year under review. Based on E.ON stock
outstanding, adjusted earnings per share (“EPS”) amounted to
€1.18 (prior year: €1.05).

Operating depreciation charges rose relative to the prior year, from
€2,862 million to €2,983 million. This is mainly attributable to an
increase in depreciation charges on property, plant, and equipment
resulting from additional investments in the network business.
Countervailing effects mainly involved intangible assets due to the
absence of depreciation charges on residual power output rights.

Economic net interest rose from €890 million to €1,082 million,
primarily because of the accretion of provisions due to the increase
in interest-rate levels at the end of 2022. In addition, the higher
interest expense on newly issued bonds due to higher interest
rates exceeded the positive effects of bond repayments.

Adjusted Net Income

€ in millions
Adjusted EBITDA
Operating depreciation
Adjusted EBIT
Operating interest earnings
Taxes on operating earnings
Operating earnings attributable to non-controlling interests
Adjusted net income

The tax rate on operating earnings of continuing operations was
25 percent, as in the prior year. The tax expense on operating
earnings rose from €1,062 million to €1,325 million owing to the
increase in pretax earnings.

Non-controlling interests’ share of operating earnings rose
significantly—from €517 million to €912 million—mainly because
of higher operating earnings at companies at the network business
in Germany with a significant proportion of non-controlling
interests. This development resulted from a larger regulated asset
base compared with the prior year and the recording of a price-
driven increase in network fees.

2023
1,581
-856
725
-243
-120
-235
127

4. Quartal
2022
1,949
-786
1,163
-176
-232
-153
602

1.-4. Quartal
2022
8,059
-2,862
5,197
-890
-1,062
-517
2,728

2023
9,370
-2,983
6,387
-1,082
-1,325
-912
3,068

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Non-Operating Adjustments

€ in millions
Net book gains (+)/losses (-)
Restructuring expenses
Effects from derivative financial instruments
Carryforward of hidden reserves (+) and liabilities (-) from the innogy transaction
Other non-operating earnings
Non-operating adjustments of EBITDA
Depreciation of hidden reserves (-) and liabilities (+) from the innogy transaction
Other non-operating impairments/reversals
Non-operating interest expense (-)/income (+)
Non-operating taxes
Non-operating adjustments of net income/loss

Reconciliation to Adjusted EBITDA

€ in millions
Adjusted EBITDA
Non-operating adjustments of EBITDA
Income/loss from continuing operations before depreciation, interest result and income taxes
Scheduled depreciation/impairments and amortization/reversals
Income/loss from continuing operations before interest results and income taxes

Fourth quarter
2022
807
-3

-4,394

-31

-217

-3,838

-115

-64
484
738
-2,795

2023
12
4
-1,587
13
-219

-1,777

-107

-112

-514
1,539
-971

Fourth quarter
2022
1,949
-3,838

-1,889

-966

-2,855

2023
1,581
-1,777

-196

-1,076

-1,272

2023
5
-22

-4,233

-100

-237

-4,587

-448

-156

-12
1,922
-3,281

2023
9,370
-4,587
4,783
-3,588
1,195

Full year
2022
748
-88

-3,123

-112

-961

-3,536

-504

-86
1,817
1,306
-1,003

Full year
2022
8,059
-3,536
4,523
-3,453
1,070

Reconciliation to Adjusted Earnings Metrics
In accordance with IFRS, earnings for 2023 also include earnings
components that are not directly related to E.ON Group’s ordinary
business activities or that are non-recurring or rare in nature.
These non-operating items are considered separately in internal
management control. Adjusted EBITDA and adjusted net income
reflect the E.ON Group’s long-term profitability and, as metrics for
internal management control, are adjusted to exclude non-
operating items.

Net book gains/losses were minor in 2023 and resulted mainly
from the combination of VSEH and ZSE in Slovakia. Book gains in
the prior year consist in particular of the partial disposal of
Westconnect.

Restructuring expenses in the 2023 financial year were below
those of the prior year and included, as in the prior year, primarily
expenditures in conjunction with the restructuring of the sales
business in the United Kingdom.

Effects in conjunction with derivative financial instruments
changed by €1,110 million to -€4,233 million. The reason was
that prices on commodity markets decreased almost continually
during the year, which led to declining fair value measurements on
forward procurement contracts.

Non-operating expense/income mainly consists of earnings effects
of -€229 million (prior year: €286 million) at shareholdings in
Turkey accounted for using the equity method in conjunction with
the application of IAS 29 and a significantly lower valuation effect
of -€130 million (prior year: €410 million). PreussenElektra’s
earnings, which are disclosed as non-operating income effective
2023, had a countervailing effect (€289 million).

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Along with the depreciation charges in connection with the innogy
purchase-price allocation, which are disclosed separately, E.ON
recorded impairment charges mainly on specific assets at
Customer Solutions and on the IFRS book value of VSEH in
Slovakia at Energy Networks.

The decline in non-operating interest expense/income resulted
from the altered direction of interest-rate movements. An increase
in interest rates in the prior year led to income from accruals on
non-current provisions for asset-retirement obligations, provisions
for recultivation and remediation obligations, and other non-
current provisions. In the interim interest rates declined relative to
prior-year balance-sheet date. By contrast, E.ON recorded positive
valuation effect on securities recognized at fair value. The positive
effect of €187 million (prior year: €204 million) from the
difference between the nominal interest rate and the effective
interest rate of former innogy bonds adjusted due to the purchase-
price allocation is still recorded under non-operating interest
expense/income.

The non-operating tax result is primarily influenced by the fair
value measurement of commodity derivatives in various countries
with different tax rates and by reversals of deferred taxes due to
the improved earnings situation in Germany and the United
Kingdom and taxes for previous years mainly from changes in tax
provisions.

Besides the above-described non-operating earnings items in the
reconciliation to adjusted EBITDA, the reconciliation to adjusted
net income includes the following items:

Reconciliation of Adjusted Net Income

€ in millions
Adjusted net income
Operating earnings attributable to non-controlling interests
Non-operating adjustments of net income
Income from continuing operations
Income/loss from discontinued operations, net
Net income

Non-controlling interests’ share of operating earnings rose from
€517 million to €912 million mainly because of higher operating
earnings at companies at the network business in Germany with a
significant proportion of non-controlling interests. This
development resulted from a larger regulated asset base
compared with the prior year and the recording of a price-driven
increase in network fees.

Fourth quarter
2022
602
153
-2,795
-2,040
–
-2,040

2023
127
235
-971
-609
–
-609

2023
3,068
912
-3,281
699
61
760

Full year
2022
2,728
517
-1,003
2,242
–
2,242

Income from discontinued operations resulted from a transaction
already completed in 2005. In accordance with the purchase
agreement, a one-time purchase-price adjustment was made after
an audit of the divested company was completed in the first
quarter of 2023, and the contractual clause now took effect.

Group net income and corresponding earnings per share amounted
to €760 million and €0.20, respectively, in the 2023 financial year.
The decline is mainly attributable to interest-rate developments
and price developments on commodity markets. Prior-year net
income and earnings per share were €2,242 million and €0.70,
respectively.

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Financial Situation

Finance Strategy
E.ON’s finance strategy focuses on capital structure. At the
forefront of this strategy is ensuring that E.ON always has access
to capital markets commensurate with its debt level.

With its target capital structure E.ON aims to sustainably secure a
strong BBB/Baa rating.

E.ON manages its capital structure using debt factor, which is
equal to economic net debt divided by adjusted EBITDA; it is
therefore a dynamic debt metric. Economic net debt includes not
only financial liabilities but also provisions for pensions and asset-
retirement obligations.

Economic net debt also includes provisions for asset-retirement
obligations. If the figures for these provisions shown in the balance
are larger than the respective amount of the obligation (without
factoring in discounting and cost-escalation effects), the amount
of the obligation—rather than provision shown in the balance
sheets—is factored into economic net income. This is the case for
asset-retirement obligations in the nuclear energy unit effective
December 31, 2023. For purposes of management control, the
amount of the obligations is therefore again used to calculate
economic net debt.

Pursuant to IFRS valuation standards, innogy’s financial liabilities
at the time of initial consolidation were recorded at their fair value.
This fair value is significantly higher than the original nominal
value because interest-rate levels have declined since innogy’s
bonds were issued. The purchase-price allocation yielded a
difference between the nominal value and the fair value, which
results in additional liabilities of €1.5 billion at year-end 2023. This
amount will be recorded in financial earnings as a reduction in
expenditures and spread out over the maturity period of the
respective bonds (see Note 10 to the Consolidated Financial
Statements. These balance-sheet and earnings effects do not alter

the interest and principal payments. To manage economic net
debt, E.ON continues to use the nominal amount of financial
liabilities, which deviates from the figure shown in its balance
sheets.

E.ON aims for a debt factor of up to 5.0. Debt factor at year-end
2023 of 4.0 was significantly below the maximum allowable
figure.

Economic Net Debt
Economic net debt increased by €5 billion relative to year-end
2022 (€32.7 billion) to €37.7 billion.

Financial liabilities of €33.9 billion reflect E.ON SE’s issuance of
bonds in the year under review as well as the repayment of five
bonds (details on the next page).

E.ON’s net financial position declined by €3.8 billion compared
with year-end 2022 to about -€25.3 billion. Investment
expenditures and E.ON SE’s dividend payment exceeded operating
cash flow and disposals.

The decrease in actuarial discount rates for pensions, which led to
an increase in defined benefit obligations, did not offset the
positive development of plan assets and, on balance, had an
adverse impact on economic net debt (see Note 25 to the
Consolidated Financial Statements). Despite the effects of accruals
and the change in interest rates, the slight decrease in provisions
for asset-retirement obligations mainly resulted from the
utilization of provisions for asset-retirement obligations in the
nuclear energy unit, which offset these effects (see Note 26 to the
Consolidated Financial Statements). Because the utilization affects
operating cash flow, however, the economic net debt was
negatively affected by the interest-rate effects.

Economic Net Debt

€ in millions
Liquid funds
Non-current securities
Financial liabilities1
FX hedging adjustment
Net financial position
Provisions for pensions
Asset-retirement obligations2
Economic net debt

2023
7,412
1,177
-33,943
11
-25,343
-4,985
-7,363
-37,691

December 31,
2022
9,378
1,347
-32,483
196
-21,562
-3,735
-7,445
-32,742

1Bonds previously issued by innogy are recorded at their nominal value. The figure shown in the
Consolidated Balance Sheets is €1.5 billion higher (year-end 2022: €1.7 billion higher).
2The figure for asset-retirement obligations at December 31, 2023, does not fully correspond to
the figure shown in the Consolidated Balance Sheets (€7,375 million at December 31, 2023). This
is because economic net debt is calculated in part based on the actual amount of E.ON’s
obligations. The figure at December 31, 2022, corresponded to the figure shown in the
Consolidated Balance Sheets (€7,445 million).

Funding Policy and Initiatives
The key objective of E.ON’s funding policy is for the Company to
have access to a variety of financing sources at all times. E.ON
achieves this objective by using different markets and debt
instruments to maximize the diversity of its investor base. E.ON
issues bonds with tenors that give its debt portfolio a balanced
maturity profile. Moreover, large-volume euro-denominated
benchmark issues may in some cases be combined with bonds
denominated in foreign currencies, smaller euro-denominated
issues, private placements, and/or promissory notes. Furthermore,
from 2019 onward E.ON has issued green bonds and has since
established them in its financing mix. E.ON continues to intend to
cover more than 50 percent of its annual long-term financing
requirements with green bonds (the “E.ON on Capital Markets”
chapter contains information about the E.ON Green Bond
Framework).

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In addition to its DIP, E.ON has a €10 billion Commercial Paper
(“CP“) program and a US$10 billion CP program, under which it
can issue short-term notes. After years of inactivity, the U.S. dollar
CP program was utilized again in 2023. €0.2 billion of CP was
outstanding at year-end 2023 (prior year: €0.8 billion).

E.ON also has access to €3.5 billion syndicated credit facility,
which was concluded on October 24, 2019. It originally had a five-
year term and includes two options to extend the facility, in each
case for one year. After both options to extend the facility were
exercised, the term of the credit facility ends on October 24, 2026.
The credit margin is linked, among other things, to the
development of certain ESG ratings, which gives E.ON financial
incentives to pursue a sustainable corporate strategy. The ESG
ratings are set by three renowned agencies: ISS ESG, MSCI ESG
Research, and Sustainalytics. The facility serves as a reliable,
ongoing general liquidity reserve for the E.ON Group and can be
drawn on as needed. The credit facility is made available by 21
banks which constitute E.ON’s core group of banks.

Alongside financial liabilities, E.ON has, in the course of its
business operations, entered into contingencies and other financial
obligations. These include, in particular, guarantees, obligations
from legal disputes and damage claims, as well as current and
non-current contractual, legal, and other obligations. Notes 27, 28,
and 32 to the Consolidated Financial Statements contain more
information about E.ON’s bonds as well as liabilities,
contingencies, and other commitments.

E.ON’s creditworthiness has been assessed by Standard & Poor’s
(“S&P“), Moody’s and Fitch with long-term ratings of BBB, Baa2,
and BBB+ (A- for bonds), respectively. The outlook for all ratings is
stable. The ratings are based on the expectation that, over the near
to medium term, E.ON will be able to maintain a debt ratio
commensurate with these ratings. The short-term ratings are A-2
(S&P), P-2 (Moody’s), and F-1 (Fitch). In early 2023 Fitch
upgraded its short-term rating from F-2 to F-1. The short-term
ratings of S&P and Moody’s remained stable in the year und
review.

Financial Liabilities

€ in billions
Bonds1
EUR
GBP
USD
JPY
Other currencies

Promissory notes
Commercial paper
Other liabilities
Total
1Includes private placements.

December 31,
2022
27.2
19.3
6.1
1.0
0.3
0.6
–
0.8
4.5
32.5

2023
27.9
20.5
5.7
0.9
0.3
0.6
–
0.2
5.8
33.9

112

E.ON Integrated Annual Report 2023

External funding is generally carried out by E.ON SE, and the funds
are subsequently on-lent in the Group. In the past, external
funding was also carried out by the Company’s Dutch finance
subsidiary, E.ON International Finance B.V. (“EIF“), under
guarantee of E.ON SE. In 2023 E.ON paid back in full maturities of
€2.6 billion. E.ON issued new debt totaling €3.3 billion (see the
chapter entitled Special Events in the Reporting Period), of which
€2.5 billion were green bonds.

With the exception of a U.S.-dollar-denominated bond issued in
2008, all of E.ON SE and EIF’s currently outstanding bonds were
issued under a Debt Issuance Program (“DIP“). Similarly, innogy
and innogy Finance B.V. bonds were formerly issued under the
former innogy Group’s DIP. A DIP simplifies a company’s ability to
issue debt to investors in public and private placements in flexible
time frames. E.ON SE’s DIP was last updated in March 2023 with
a total volume of €35 billion, of which about €19.7 billion was
utilized at year-end 2023 E.ON SE intends to renew the DIP in
2024.

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E.ON SE Ratings

Long term
Outlook
Bonds
Short term

S&P
BBB
Stable
BBB
A-2

Moodys'
Baa2
Stable
Baa2
P-2

Fitch
BBB+
Stable
A-
F-1

Investments
The E.ON Group’s cash-effective investments of €6.4 billion in
2023 were significantly above the prior-year figure of €4.8 billion.
€6 billion (prior year: €4.6 billion) went toward property, plant, and
equipment and intangible assets, whereas share investments
totaled about €411 million (prior year: €177 million).

Investments

€ in millions
Energy Networks
Customer Solutions

Thereof: Energy Infrastructure Solutions
("EIS")

Corporate Functions/Other1
Consolidation
E.ON Group

2023
5,156
1,124

684
141
–
6,421

45291
2022
3,845
831

523
76
1
4,753

1Prior-year figures were adjusted owing to the transfer of Non-Core Business.

The strategic focus of our investment activity is Energy Networks.
This segment’s investments rose by 34 percent to €5.2 billion
(prior year: €3.8 billion). The main focus in all regions was on new
connections and network expansion in conjunction with the energy
transition.

Customer Solutions’ investments increased by 35 percent to €1.1
billion (prior year: €0.8 billion). Fully €0.7 billion (prior year: €0.5
billion) of total investments went toward Energy Infrastructure
Solutions (“EIS”) across all regions. This increase is attributable in
particular to higher investments in the smart energy meter
business in the United Kingdom and the acquisition of Equans
Energy Solutions (“EES”). EES offers aquifer thermal energy
storage (“ATES”) in the Netherlands and focuses on low-carbon
heat and cooling solutions for existing residential and business
buildings. In addition, investments to decarbonize the heat and
power generation of municipalities and industrial customers in
Germany were increased.

E.ON will continue to take into account the trust of rating agencies,
investors, and banks at all times by means of a clear strategy and
transparent communications. Alongside the ongoing dialog with
capital market investors (at road shows, for example) and rating
analysts, E.ON organizes events that include an annual
informational meeting for its core group of banks.

Investments at Corporate Functions/Other of €141 million (prior
year: €76 million) went especially toward intangible assets and
other shareholdings.

Cash Flow
Cash provided by operating activities of continuing operations
before interest and taxes of €7.2 billion was €4.3 billion below the
prior-year figure (€11.5 billion). This resulted in part from a decline
of €0.9 billion at Energy Networks, which is mainly attributable to
adverse changes in working capital at the network business in
Germany. In particular, back payments to energy feed-in
customers who had received insufficient installment payments in
the previous year had a negative impact on operating cash flow in
the year under review. The remaining decline (a total of -€3.4
billion) came from Customer Solutions and Corporate
Functions/Other and was likewise mainly due to negative changes
in working capital in the 2023 financial year that more than offset
the increase in cash-effective earnings. These negative changes in
working capital are mainly attributable to the timing difference
between customer installment payments already received in 2022
and payments from government support measures and the related
cash outflows from commodity procurement in the year under
review. In addition, the closure of E.ON’s last nuclear power plant
in the 2023 financial year led to a further deterioration of cash
provided by operating activities relative to the prior year.

Cash provided by investing activities of continuing operations of
-€5.6 billion was 2.4 billion below the prior-year figure of -€3.2
billion. This includes cash-effective investments of €6.4 billion
(prior year: €4.8 billion). The increase is primarily attributable to
the planned increase in investments in property, plant, and
equipment and intangible assets, particularly at the network
business Germany. A reduction in cash inflow from disposals also
affected cash provided by investment activities. There was no
transaction in the 2023 financial year comparable to the sale of
E.ON’s 50 percent stake in Westconnect in the prior year.

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Cash Flow
€ in millions
Operating cash flow

Operating cash flow before interest and
taxes

Cash provided by (used for) investing
activities

Cash provided by (used for) financing
activities

2023
5,654

2022
10,045

7,225

11,511

-5,588

-3,146

-1,844

-3,146

Cash provided by financing activities of continuing operations of -
€1.8 billion was €1.3 billion above the prior-year figure of -€3.1
billion. The net of the issuance and repayment of bonds,
commercial paper, and bank liabilities led to an improvement in
cash provided by financing activities. A net reduction in adverse
effects in conjunction with variation margins due to the settlement
of derivative transactions led to a further improvement in cash
provided by financing activities.

Cash-Conversion Rate
Cash-conversion rate (“CCR“) indicates how much of the E.ON
Group’s earnings are transformed into cash flow. CCR is equal to
operating cash flow before interest and taxes divided by adjusted
EBITDA. Cash outflows for the decommissioning of nuclear power
plants were excluded from CCR until 2022. Because the earnings
streams from PreussenElektra’s generation activities are no longer
included in adjusted EBITDA due to the discontinuation of power
operations effective December 31, 2022, CCR was adjusted for
the 2023 financial year. Cash flows of €271 million included in
operating cash flow before interest and taxes in conjunction with
the decommissioning of nuclear power plants and their temporary
continued operation from January 1 to April 15, 2023, were not
factored into the calculation of CCR. E.ON’s CCR in 2023 was 80
percent (prior year: 151 percent).

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Non-current debt declined by €2 billion, or 3.5 percent, chiefly
because of the development of liabilities relating to derivative
financial instruments and a decline in other provisions for
contingent losses from pending transactions because of their
utilization following the settlement of the underlying transactions.
An increase in provisions for pensions due to lower interest rates
and an increase in financial liabilities had a countervailing effect.

Current debt of €37.6 billion was 30.6 percent below the figure at
year-end 2022, due principally to a decrease in liabilities relating to
derivative financial instruments, which is likewise due to
developments on commodity markets, and a decrease in liabilities
from trade accounts payable.

Consolidated Assets, Liabilities, and Equity
€ in millions
Non-current assets
Current assets
Total assets
Equity
Non-current liabilities
Current liabilities
Total equity and liabilities
1Adjusted (see also page 136).

Dec. 31, 2023
83,034
30,472
113,506
19,970
55,923
37,613
113,506

% Dec. 31, 2022
81,769
73
52,240
27
134,009
100
21,867
18
57,934 1
49
54,208 1
33
134,009
100

%
61
39
100
16
43
41
100

The Notes to the Consolidated Financial Statements contain more
commentary on E.ON’s asset situation.

Asset Situation

Total assets and liabilities of €113.5 billion were about €20.5
billion, or 15 percent, below the figure at year-end 2022. Non-
current assets rose by €1.3 billion to €83 billion. This is mainly
attributable to an increase in investments in property, plant, and
equipment as well as a rise in the book value of companies valued
using the equity method. This was mainly due to the addition of
VSEH at Západoslovenská energetika a.s. (“ZSE”) and the
application of IAS 29 in Turkey. By contrast, receivables from
derivative financial instruments declined. This relates in particular
to the development of commodity derivatives. In addition, deferred
tax assets increased owing to the development of derivatives and
the reversal of deferred tax assets in the E.ON SE’s tax group.

Current assets decreased by 41.7 percent, from €52.2 billion to
€30.5 billion. This likewise resulted mainly from the decline in
receivables on derivative financial instruments due to
developments on commodity markets and from a reduction in
liquid funds caused by higher investments and dividend payments.

Equity attributable to E.ON SE shareholders was about €14.1
billion at year-end 2023 (prior year: about €15.9 billion), whereas
equity attributable to non-controlling interests was roughly €5.9
billion (prior year: about €5.9 billion). The equity ratio (including
non-controlling interests) at year-end 2023 was about 18 percent,
which is 2 percentage points higher than at year-end 2022. The
primary reason for the decline in equity was the reduction in net
income, the dividend payment along with the remeasurement of
pension obligations. In addition, other income and expenses
decreased because of the recycling of the cash flow hedge
relationships for commodity derivatives that were unwound in the
prior year.

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E.ON SE’s Earnings, Financial, and Asset Situation

The 2023 Financial Year
E.ON SE prepares its Financial Statements in accordance with the
German Commercial Code, the SE Ordinance (in conjunction with
the German Stock Corporation Act), and the Electricity and Gas
Supply Act (Energy Industry Act).

Balance Sheet of E.ON SE (Summary)

€ in millions
Intangible assets
Property, plant, and equipment
Financial assets
Non-current assets
Receivables from affiliated companies
Other receivables and assets
Liquid funds
Current assets
Accrued expenses
Asset surplus after offsetting of benefit
obligations
Total assets
Equity
Provisions
Bonds
Liabilities to affiliated companies
Other liabilities
Deferred income
Total equity and liabilities

2023
0
14
46,808
46,822
15,156
1,244
4,642
21,042
85

16
67,965
12,359
3,912
16,592
34,385
460
257
67,965

December 31
2022
1
12
45,743
45,756
13,515
2,442
5,224
21,181
73

0
67,010
11,723
1,141
15,601
37,769
547
229
67,010

The merger of the sole general partner of Essen-based MEON
Pensions GmbH Co. KG (“MEON”) into E.ON SE, the acquiring
entity, on August 28, 2023, resulted in MEON’s business assets
accruing to E.ON as part of the universal succession. The accrual
limits individual line items’ comparability with the prior year.

The increase in financial assets consists mainly of an increase in
loans to affiliated companies (€1,451 million) and an increase in
securities held as fixed assets due to the MEON accrual (€985
million). A decline in stakes in affiliated companies due to the
MEON accrual (-€1,371 million) was a countervailing factor.

The increase in receivables from affiliated companies is mainly
attributable to higher receivables from profit-pooling agreements
with subsidiaries (€842 million). The decline in other liabilities
results mainly from a reduction in the amount in money market
funds (-€1,279 million).

The change in equity reflects a €650 million increase in retained
earnings resulting from changes in treasury shares under the
employee stock-purchase program conducted in 2023 (€15
million) along with a €28 million decrease in net income available
for distribution.

The increase in provisions results mainly from the provisions for
pensions added from MEON at the date of the accrual (€2,722
million).

E.ON SE issued new bonds and commercial paper in the amount of
€3,300 million in the 2023 financial year and repaid bonds in the
amount of €1,750 million. In addition, liabilities from commercial
paper declined by €559 million. The decrease in liabilities to
affiliated companies of €3,484 million reflects a decline in intra-
Group financing.

Information on treasury shares can be found in Note 11 to the
Financial Statements of E.ON SE and Note 20 to the Consolidated
Financial Statements.

Income Statement of E.ON SE (Summary)
€ in millions
Income from equity interests
Financial result
Other expenditures and income
Taxes
Net income
Profit carryforward from the prior year
Net income transferred to retained earnings
Net income available for distribution

2023
4,011
-743
-1,155
-160
1,953
1,494
-650
2,797

2022
2,954
-876
-635
106
1,549
1,276
0
2,825

E.ON SE is the parent company of the E.ON Group. As such, its
earnings situation is affected by income from equity interests. The
main contributors to positive income from equity interests were
income from the transfer of profits from E.ON Beteiligungen
GmbH in the amount of €2,174 million, E.ON Finanzanlagen
GmbH in the amount of €1,030 million, and E.ON Energie AG in
the amount of €764 million.

The financial result for 2023 includes a deterioration in net interest
expense of €516 million, mainly due to the increase in interest
rates. By contrast, the prior-year financial result was adversely
affected by expenses from impairment charges on equity interests
in affiliated companies (€649 million).

The negative balance of other income and expenses in 2023
resulted primarily from €489 million in losses due to the transfer
of MEON Pensions GmbH & Co. KG to E.ON SE, €265 million in
personnel-related expenses, €225 million in expenses for
purchased third-party services, €64 million in auditing and
consulting services, and €174 million in net expenses from
currency effects. The increase in the provision for recultivation and
remediation obligations in 2023 reflected expenditures of €16
million (prior year: €109 million).

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Outlook
The E.ON SE Management Board has decided on a dividend policy
that foresees annual growth in the dividend per share of up to 5
percent through the dividend for the 2028 financial year. This also
applies to dividend growth of up to 5 percent for the 2024
financial year. E.ON will aim for an annual increase in dividend per
share after 2028 as well. In E.ON’s strategy, sustainability with an
emphasis on climate-neutral economic activities is a key growth
factor that will enable E.ON to meet its dividend targets.

The activities of the company E.ON SE within the meaning of
Section 6b (3) of the Energy Industry Act consist mainly of other
activities outside the electricity and gas sector. In addition, E.ON
SE provides a relatively limited degree of energy-specific services
to affiliated network operators for network operations relating to
electricity distribution and/or gas distribution and prepares activity
statements for these services. The resulting earnings, individually
and in total, are minimal (about -€0.2 million).

In the year under review, total tax expenses amounted to €160
million relating to taxes for the current financial year as well as
taxes for prior years. This consists of income tax expense of €160
million and an expense from other taxes of €0.2 million.

At the Annual Shareholders Meeting in 2024, the Management
Board will propose that net income available for distribution be
used to pay a dividend of €0.53 per ordinary share and the
remaining amount of €1,412 million to be carried forward to the
next financial year. Management’s proposal for the use of net
income available for distribution is based on the number of
ordinary shares on March 4, 2024, the date the Financial
Statements of E.ON SE were prepared.

The complete Financial Statements of E.ON SE, with an
unqualified opinion issued by the auditor, KPMG AG, Düsseldorf,
will be announced in the Federal Gazette (Bundesanzeiger).

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Forecast Report

Business Environment

Macroeconomic Situation
In view of the current geopolitical crises and challenges and the
associated uncertainties, the OECD’s economic outlook published
at the end of 2023 forecasts global economic growth of 2.7
percent for 2024. However, the current situation gives forecasts a
high degree of uncertainty.

The forecast for global economic growth in 2024 takes into
account stricter financing conditions, weak trade growth amid
geopolitical tensions, and the effects of tighter monetary policy.
Assuming that inflation continues to fall and real incomes rise, the
OECD expects the global economy to grow by 3 percent in 2025.
Global goods trade and industrial production are expected to
regain momentum owing to the considerable drawdown of
companies’ inventories, while China’s weak economic
development will have a dampening effect.

The European Commission’s experts predict that the EU’s GDP will
grow by 1.3 percent in 2024 and 1.7 percent in 2025.

Economic institutes anticipate that Germany’s economy will begin
to recover and grow by 0.9 percent in 2024 and to normalize
further in 2025 with GDP growth of 1.3 percent. Declining
inflation at the end of 2023, rising incomes, and the high
employment rate indicate an increase in purchasing power and
overall economic demand, which support these estimates and
forecasts.

General Statement on E.ON’s Anticipated
Development

The growth strategy adopted in 2021 as a continuation of the
Group’s far-reaching transformation in the preceding years proved
to be correct and resilient in 2023 as well. In our view, the
strategic elements of sustainability and digitalization, which
remain valid and underscore E.ON’s growth ambitions, are
precisely the success factors that will accelerate the
transformation of the energy system. We anticipate that in 2024
our operating business will continue to be shaped by a higher level
of commodity prices and of inflation and interest rates than before
the start of the crisis.

Anticipated Earnings and Financial Situation

Forecast Earnings Performance
The most important key performance indicators for managing the
E.ON Group are adjusted EBITDA, investments, and earnings per
share from adjusted net income (“EPS”). E.ON expects adjusted
Group EBITDA of €8.8 to €9.0 billion in the 2024 financial year. It
anticipates adjusted net income of €2.8 to €3.0 billion, or €1.07 to
€1.15 per share in 2024 (based on around 2,612 million shares
outstanding). We report on the E.ON Group’s dividend policy and
planned annual dividend growth in the E.ON on Capital Markets
chapter.

Forecast by segment

Adjusted EBITDA1: 2024 Plan
€ in billions
Energy Networks
Energy Retail (previously Customer Solutions)
Energy Infrastructure Solutions (EIS)
Corporate Functions/Other
E.ON Group
1Adjusted for non-operating effects.

6.7 to 6.9
1.6 to 1.8
0.55 to 0.65
about -0.2
8.8 to 9.0

There are changes to the E.ON Group’s segment reporting
effective January 1, 2024. The Energy Infrastructure Solutions
(“EIS”) business, which was previously included in the Customer
Solutions segment, has been carved out and will be reported as a
separate segment. From 2024 onward, Customer Solutions also
includes the activities of E.ON Energy Markets GmbH, our central
commodity procurement unit (previously included in Corporate
Functions/Other), and, due to its business activities’ new profile,
has been renamed Energy Retail.

E.ON expects Energy Networks to record an earnings increase in
2024 compared with the past financial year. This performance will
result from further growth in the regulated asset base due to
additional investments along with positive regulatory changes,
particularly in Sweden. In addition, brought forward catch-up
effects for costs incurred in prior years for network losses that
were not fully covered are expected in Hungary.

Earnings at Energy Retail (formerly Customer Solutions), without
the Energy Infrastructure Solutions business, are expected to be
significantly below the prior-year level, which will not be
significantly altered by the initial inclusion of E.ON Energy Markets
GmbH. The non-recurrence of positive one-off effects and the
anticipated stabilization of the market environment will have an
adverse impact on earnings.

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E.ON will make most of these investments in its Energy Networks
segment, the backbone of a successful energy transition.
Investments will go toward expanding, enhancing, and
modernizing networks, switching equipment, and metering and
control technology in order to ensure the reliable, uninterrupted,
and sustainable distribution of electricity and to meet rising energy
demand. In addition, E.ON will invest in the digitalization of
network planning, monitoring, and control.

Investments at Energy Infrastructure Solutions will mainly go
toward business expansion in our markets in Sweden, Germany,
and the United Kingdom.

At Energy Retail, E.ON will invest in advanced IT platforms, smart
charging solutions for eMobility, and integrated energy solutions.

Corporate Functions/Other’s investments will go mainly toward
Group-wide IT infrastructure and digital platforms for the
networks and customer solutions business.

E.ON expects Energy Infrastructure Solutions‘ earnings to be
slightly higher in 2024 relative to the past financial year. This is
mainly attributable to the higher investment activity of recent
years and the related commissioning of new customer projects.

Earnings at Corporate Functions/Other are expected to be below
the prior-year level. Lower earnings from generation activities in
Turkey and the fact that E.ON Energy Markets GmbH’s earnings
are now reported at Energy Retail will have an adverse impact.

Adjusted net income and earnings per share from adjusted net
income (“EPS”) are expected to be below the prior-year level. In
addition to the above-described developments in adjusted EBITDA,
higher depreciation charges due to increased investments in the
energy transition will have a negative impact. This will be partially
offset by lower non-controlling interests resulting from a decline in
operating earnings from companies with a significant share of
minority interests.

Planned Investments
Investments in the sustainable expansion and digital
transformation of energy networks and customer solutions
operations form the basis for the value-driven growth E.ON aims
to achieve. Investments of around €7.2 billion are therefore
planned for the 2024 financial year.

Cash-Effective Investments: 2024 Plan

Energy Networks
Energy Retail (previously Customer Solutions)
Energy Infrastructure Solutions (EIS)
Corporate Functions/Other
E.ON Group

€ in billions
~5.7
~0.5
~0.8
~0.2
~7.2

Percentages
79
7
11
3
100

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Risks and Chances Report

Objective

E.ON’s Enterprise Risk Management (“ERM”) provides the
management of all units as well as the E.ON Group with a fair and
realistic view of the risks and chances resulting from their planned
and contracted business activities. It provides:

• meaningful information about risks and chances to the business,
thereby enabling the business to derive individual risks/chances
as well as aggregate risk profiles within the time horizon of the
medium-term plan

• transparency on E.ON’s risk position in compliance with legal

requirements including KonTraG, BilMoG, and BilReG.

The ERM is based on a centralized governance approach that
defines standardized processes and tools covering the
identification, evaluation, countermeasures as well as the
monitoring and reporting of risks and chances. Overall governance
is provided by the Group Controlling & Risk division’s Group Risk &
Special Projects department on behalf of the E.ON SE Risk
Committee.

All risks and chances have an accountable member of the
Management Board, have a designated risk owner who remains
operationally responsible for managing that risk/chance, and are
identified in a dedicated bottom-up process.

Scope

E.ON’s risk management system in the broader sense has a total of
four components:

• an internal monitoring system

• a management information system

• preventive measures

• the ERM, which is a risk management system in the narrow

sense.

The purpose of the internal monitoring system is to ensure the
proper functioning of business processes. This consists of
preventive organizational measures (such as policies and work
instructions) and internal controls and audits (particularly by
Internal Audit).

The E.ON internal management information system identifies risks
early so that steps can be taken to actively address them. Close
consultation between the business units and with departments at
Corporate Functions such as Controlling, Finance, and Accounting,

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as well as Internal Audit is of particular importance in early risk
detection.

General Measures to Limit Risks

E.ON takes the following general preventive measures to limit
risks.

Managing Legal and Regulatory Risks
E.ON engages in extensive and constructive dialog with
government agencies and policymakers in order to manage the
risks resulting from the E.ON Group’s policy, legal, and regulatory
environment. Furthermore, the Company strives to conduct proper
project management so as to identify early and minimize the risks
attending major investments.

E.ON attempts to minimize the operational risks of legal
proceedings and ongoing planning processes by managing them
appropriately and by designing appropriate contracts beforehand.

Managing Operational and IT Risks
To limit operational and IT risks, E.ON continually improves its
network management and the optimal deployment of its assets. At
the same time, E.ON implements operational and infrastructure
improvements that will enhance the reliability of its generation
assets and distribution networks, even under extraordinarily
adverse conditions. In addition, E.ON has factored the operational
and financial effects of environmental risks into its emergency
plan. They are part of a catalog of crisis and system-failure
scenarios prepared for the Group by the Incident and Crisis
Management team.

E.ON IT systems are maintained and optimized by qualified E.ON
Group experts and outside experts, and by a wide range of
technological security measures. In addition, the E.ON Group has
in place a range of technological and organizational measures to
counter the risk of unauthorized access to data, the misuse of data,
and data loss.

Managing Health, Safety, and Environmental (“HSE”),
Human Resources (“HR”), and Other Risks
The following are among the comprehensive measures E.ON takes
to address such risks (including in conjunction with operational and
IT risks):

• systematic employee training, advanced training, and

qualification programs for employees

• further refinement of production procedures, processes, and

technologies

• regular facility and network maintenance and inspection

• Company guidelines as well as work and process instructions

• quality management, control, and assurance

• project, environmental, and deterioration management

• crisis-prevention measures and emergency planning

• management systems for health, safety, and environmental

protection certified to ISO standards; in some cases, technical
safety management (“TSM”) as well

• defined continual improvement processes (“CIPs”).

Should an accident occur despite the measures taken, E.ON has a
reasonable level of insurance coverage. Detailed information can
be found in various chapters of the Combined Group Management
Report.

Managing Market Risks
E.ON uses a comprehensive sales-management system and
extensive customer management to manage margin risks caused
by market prices. E.ON conducts systematic risk management to
limit exposure to risks of price changes. Its key elements are, in
addition to binding Group-wide policies and a Group-wide
reporting system, the use of quantitative key figures, the
limitation, pricing, and optimization of risks, and the strict
separation of functions between departments. Furthermore, E.ON
utilizes derivative financial instruments that are commonly used in
the marketplace. These instruments are transacted with financial
institutions, brokers, power exchanges, and third parties whose
creditworthiness is monitored on an ongoing basis. E.ON’s local
sales units and the remaining generation operations conduct local
risk management under central governance standards to monitor
these underlying commodity risks and to minimize them through
hedging.

Managing Strategic Risks
E.ON has comprehensive preventive measures in place to manage
potential risks relating to acquisitions and investments. These
measures include, in addition to the relevant company guidelines
and manuals, comprehensive due diligence, legally binding
contracts, a multistage approvals process, and shareholding and
project controlling. Comprehensive post-acquisition projects also
contribute to successful integration.

Managing Finance and Treasury Risks
This category encompasses credit, interest-rate, currency, tax, and
asset-management risks and chances. E.ON uses systematic risk
management to monitor and control its interest-rate and currency
risks and manage these risks using derivative and non-derivative
financial instruments. Here, E.ON SE plays a central role by
aggregating risk positions through intragroup transactions and
hedging these risks in the market. Due to E.ON SE’s intermediary
role, its risk position is largely closed.

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In the context of Group-wide credit risk management, E.ON
systematically assesses and monitors the creditworthiness of its
business partners on the basis of Group-wide minimum standards.
E.ON manages credit risk by taking appropriate measures, which
include obtaining collateral and setting limits. The E.ON Group’s
Risk Committee is regularly informed about credit risks. A further
component of E.ON’s risk management is a conservative
investment strategy for financial funds and a broadly diversified
portfolio.

Note 31 to the Consolidated Financial Statements contains
detailed information about the use of derivative financial
instruments and hedging transactions. Note 32 describes the
general principles of E.ON’s risk management and applicable risk
metrics for quantifying risks relating to commodities, credit,
liquidity, interest rates, and currency translation.

Enterprise Risk Management (“ERM”)

E.ON’s ERM, which is the basis for the risks and chances described
in the next section, encompasses:

• systematic risk and chance identification

• risk and chance analysis and evaluation

• management and monitoring of risks and chances by analyzing

and evaluating countermeasures and preventive systems

• documentation and reporting.

As required by law, E.ON’s ERM’s effectiveness is reviewed
regularly by Internal Audit. In compliance with the provisions of
Section 91, Paragraph 2, of the German Stock Corporation Act
relating to the establishment of a risk-monitoring and early
warning system, E.ON has a Risk Committee for the E.ON Group
and for each of its business units. The Risk Committee’s mission is
to achieve a comprehensive overview of E.ON’s risk exposure at

the Group and unit level and to actively manage risk exposure in
line with E.ON’s risk strategy.

Risks and Chances

The ERM applies to all fully consolidated E.ON Group companies
and all companies valued at equity whose gross book value in the
Consolidated Financial Statements is greater than €50 million.
E.ON takes an inventory of its risks and chances at each quarterly
balance-sheet date.

To promote uniform financial reporting Group-wide, E.ON has in
place a central, standardized system that enables effective and
automated risk reporting. Company data are systematically
collected, transparently processed, and made available for analysis
both centrally and decentrally at the units.

Methodology
E.ON’s IT-based system for reporting risks and chances has the
following risk categories and examples:

Legal and regulatory risks
• Policy and legal risks and chances

• Regulatory risks

• Risks from public consent processes

Operational and IT risks
• IT and process risks and chances

• Risks and chances relating to asset operations and new-build

projects

HSE, HR, and other
• Health, safety, and environmental risks and chances

Market risks
• Risks and chances from the development of commodity prices

and margins and from changes in market liquidity

Strategic risks
• Risks and chances from investments and disposals

Finance and treasury risks
• Credit, interest-rate, foreign-currency, tax, and asset-

management risks and chances

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E.ON uses a multistep process to identify, evaluate, simulate, and
classify risks and chances. Risks and chances are generally
reported on the basis of objective evaluations. If this is not
possible, estimates by in-house experts are used. The evaluation
measures a risk’s/chance’s financial impact on the current earnings
plan while factoring in risk-reducing countermeasures. The
evaluation therefore reflects the net risk.

Impact Classes
Low

Moderate

Medium

Major

High

x < €50 million
€50 million ≤ x < €200 million
€200 million ≤ x < €500 million
€500 million ≤ x < €2 billion
x ≥ €2 billion

The last step is to assign, in accordance with the 5th and 95th
percentiles, the aggregated risk distribution to impact classes—
low, moderate, medium, major, and high—according to their
quantitative impact on planned adjusted EBITDA. The impact
classes are shown in the table above.

For quantifiable risks and chances, E.ON then evaluates the
likelihood of occurrence and the potential loss or damage. In the
commodity business, for example, commodity prices can rise or
fall. This type of risk is modeled with a normal distribution.
Modeling is supported by a Group-wide IT-based system.
Extremely unlikely events—those whose likelihood of occurrence is
5 percent or less—are classified as tail events. Tail events are not
included in the simulation described below.

This statistical distribution makes it possible for E.ON’s internal
risk management system to conduct a Monte Carlo simulation of
these risks. This yields an aggregated risk distribution that is
quantified as the deviation from the Company’s current earnings
plan for adjusted EBITDA.

E.ON uses the 5th and 95th percentiles of this aggregated risk
distribution as the worst case and best case, respectively.
Statistically, this means that with this risk distribution there is a 90
percent likelihood that the deviation from the Company’s current
earnings plan for adjusted EBITDA will remain within these
extremes.

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Commodity prices, which rose sharply in 2022 in conjunction with
the war in Ukraine, declined significantly in 2023. This has
significant positive implications for the assessment of individual
risks as well as, on the negative side, individual chances relative to
the prior year. On the one hand, commodity prices can affect
wheeling volume and prices in the sales business; on the other, it is
a material risk factor for possible bad debts in the sales business.
Persistently high commodity prices also lead to material
counterparty risks; however, our major suppliers’ good credit
ratings and system relevance continue to render the likelihood of
occurrence very low (tail/high).

EBITDA by more than €500 million. Also included are risks and
chances that would affect planned net income and/or cash flow.

Legal and Regulatory Risks
The political, legal, and regulatory environment in which the E.ON
Group does business is a source of risks. This could confront E.ON
with direct and indirect consequences that could lead to possible
financial disadvantages. New risks—but also opportunities—arise
from energy-policy decisions at the European and national level.
The Energy Policy and Regulatory Environment chapter contains
detailed information about the energy policy environment.

General Risk Situation
The table below shows the maximum annual aggregated risk
position (aggregated risk distribution) across the time horizon of
the medium-term plan for all quantifiable risks and chances
(excluding tail events) for each risk category based on E.ON’s most
important financial key performance indicator, adjusted EBITDA.

The following description of risks by category alludes to the
aforementioned impact classes. It also addresses major/high tail
events and major/high qualitative risks. In the case of qualitative
risks (which by definition are more difficult to assess both in terms
of their loss amount and their probability), a further distinction is
made between risks with a low probability (6 percent < x ≤ 25
percent) and a medium probability (26 percent < x ≤ 50 percent).
Example: in category x, there is a risk y (medium, high) and a risk z
(low, major).

In the case of tail events and qualitative risks, the focus is not only
on E.ON’s key performance indicator, adjusted EBITDA, but also on
other indicators relating to its asset and financial position.

The energy network business could likewise experience a decline
in wheeling volume, credit losses, price increases for network
losses, and redispatch expenditures that lead to lower earnings. A
distinctive feature of several of regulatory jurisdictions in Europe in
which we operate networks is that regulatory mechanisms
generally foresee that a decline in wheeling volume and price-
driven cost increases for network losses can generally be
recovered in subsequent years by corresponding adjustments to
network tariffs.

The E.ON Group has major risk positions in the following category:
market risks. As a result, the aggregate risk position of E.ON SE as
a Group is major. In other words, the E.ON Group’s maximum
annual adjusted EBITDA risk ought not to exceed -€500 million to
-€2 billion in 95 percent of all cases.

Risks and Chances by Category
E.ON’s major risks and chances by risk category are described
below. Also described are major risks and chances stemming from
tail events as well as qualitative risks that would impact adjusted

Risk Position
Risk category
Legal and regulatory risks
Operational and IT risks
HSE, HR, and other
Market risks
Strategic risks
Finance and treasury risks

Worst case (5th percentile)
Medium
Moderate
Low
Major
Moderate
Medium

Best case (95th percentile)
Medium
Low
Low
Medium
Low
Medium

In the wake of the economic and financial crisis in many EU
member states, interventionist policies and regulations have been
adopted in recent years, such as additional taxes and additional
reporting requirements (for example, EMIR, MAR, REMIT, MiFID2).
The relevant agencies monitor compliance with these regulations
closely. This leads to attendant risks for E.ON’s operations. The
same applies to price moratoriums, regulated price reductions,
statutory price adjustment requirements, and changes to support
schemes for renewables, which could pose risks to, as well as
create chances for, E.ON’s operations in the respective countries.

The operation of energy networks is subject to a large degree of
government regulation. New laws and regulatory periods cause
uncertainty for this business. In addition, matters related to
Germany’s Renewable Energy Sources Act, such as issues
regarding solar energy, can cause temporary fluctuations in cash
flow and adjusted EBITDA. The rapid growth of renewables is also
creating new risks for the network business. For example,
insolvencies among renewables operators or feed-in tariffs unduly
paid by grid operators lead to court or regulatory proceedings.

This risk category also includes major risks arising from possible
litigation, fines, and claims; governance and compliance issues; as
well as risks and chances related to contracts and permits.
Changes to this environment can lead to considerable uncertainty
with regard to planning and, under certain circumstances, to

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→ Disclosures Regarding Takeovers

impairment charges, but can also create chances. This results in a
medium risk and a medium chance position.

In addition, the decommissioning of gas networks and attendant
possible asset-retirement obligations could pose significant risks
for the Energy Networks segment (tail, high).

The operations of the E.ON Group’s Customer Solutions segment
subject it to certain risks relating to legal proceedings, ongoing
planning processes, and regulatory changes. But these risks also
relate, in particular, to legal actions and proceedings concerning
contract and price adjustments to reflect market dislocations or
(including as a consequence of the energy transition) an altered
business climate in the power and gas business, alleged price-
rigging, and anticompetitive practices. This poses a major risk
(tail/high).

A significant change will result from Germany’s implementation of
the European Court of Justice’s ruling requiring it to form a largely
independent national regulatory agency, which could have an
impact on E.ON’s regulated business activities in Sweden
(low/major).

of E.ON’s critical infrastructure), on the sales business (which
could result in the loss of customer data), and on internal systems
(which E.ON uses to control commercial processes in all its
business units). It is important that the operating units and the
Cybersecurity and Enterprise Risk Management divisions jointly
and proactively evaluate and manage risks for E.ON.

Technologically complex production facilities are used in the
distribution of energy, resulting in major risks from procurement
and logistics, construction, the operation and maintenance of
assets, as well as general project risks. The risks at
PreussenElektra encompass dismantling activities as well. E.ON’s
operations in and outside Germany face major risks of a power
failure as well as higher costs and additional investments resulting
from unanticipated operational disruptions or other problems.
Operational failures or extended production stoppages of facilities
or components of facilities as well as environmental damage could
negatively impact earnings, affect the cost situation, and/or result
in the imposition of fines. In unlikely cases, this could lead to a high
risk. Overall, it results in a moderate risk position and a low chance
position in this category. General project risks can include delays
and increased capital requirements.

PreussenElektra’s business is substantially influenced by
regulation as well. This could pose risks for its remaining business
and the dismantling of decommissioned nuclear power plants.

Extraordinary environmental events could also affect the operation
of energy networks or equipment and equipment components.
This could pose a liquidity risk for E.ON (tail/major).

Operational and IT Risks
The operational and strategic management of the E.ON Group
relies heavily on complex information technology (“IT”) and
complex operational technology (“OT”). Consequently, there are
risks and chances in conjunction with information security and the
security of operating processes in E.ON’s business segments.

Cybersecurity and the continuous protection of IT and OT systems
against cyberattacks constitute a focus area of E.ON’s risk
management. Examples include the analysis of attacks on the
systems of the network business (which could affect the operation

E.ON could also be subject to environmental liabilities that could
have a significant adverse impact on its business. In addition, new
or amended environmental laws and regulations may result in cost
increases for E.ON.

HSE, HR, and Other Risks
Health and occupational safety are important aspects of E.ON’s
day-to-day business. The Company’s operating activities can
therefore pose risks in these areas and create social and
environmental risks and chances. In addition, E.ON’s operating
business potentially faces risks resulting from human error and

employee turnover. It is important that E.ON acts responsibly
along its entire value chain and that it communicates consistently,
enhances the dialog, and maintains good relationships with key
stakeholders. E.ON actively considers environmental, social, and
corporate governance issues. These efforts support the Company’s
business decisions and public relations. E.ON’s objective is to
minimize reputational risks and retain public acceptance so that
the Company can continue to operate its business successfully.
These matters result in a low risk and chance position.

In the past, predecessor entities of E.ON SE conducted mining
operations, resulting in obligations in North Rhine-Westphalia and
Bavaria (low/major). E.ON SE can be held responsible for damage.
This could lead to major individual risks that E.ON currently only
evaluates qualitatively.

Market Risks
E.ON’s units operate in an international market environment that is
characterized by general risks relating to the business cycle. In
addition, the entry of new suppliers into the marketplace along
with more aggressive tactics by existing market participants and
reputational risks have created a keener competitive environment
for the Company’s sales business in and outside Germany, which
could reduce margins. However, market developments could also
have a positive impact on E.ON’s business. Such factors include
wholesale and retail price developments, customer churn rates,
and temporary volume effects in the network business. This
results in a major risk and a medium chance position in this
category.

The demand for electric power and natural gas is seasonal, with
E.ON’s operations generally experiencing higher demand during
the cold-weather months of October through March and lower
demand during the warm-weather months of April through
September. As a result of these seasonal patterns, E.ON’s sales
and results of operations are higher in the first and fourth quarters
and lower in the second and third quarters. E.ON procures the
required quantities of electricity and gas for its customers based

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on robust demand forecasting methods. Nevertheless, actual
customer demand may deviate from the forecast owing to various
factors (such as the weather and the economy). Such deviations
could have a positive or negative business impact, particularly in
an environment of highly volatile prices. E.ON aims to reduce these
impacts by, for example, pursuing a prudent hedging strategy in
conjunction with a proactive approach to reforecasting or by
pricing its risks vis-à-vis customers.

Alongside E.ON’s own procurement organization for its sales
business, the E.ON Energy Markets GmbH (“EEM”) subsidiary
functions as a central interface to wholesale markets. EEM’s main
purpose is to consolidate E.ON’s commodity positions in order to
manage market price risks and to diversify and mitigate credit and
margin (cash flow) risks.

Strategic Risks
E.ON’s business strategy involves acquisitions and investments in
its core business as well as disposals. This strategy depends in part
on the ability to successfully identify, acquire, and integrate such
companies that enhance, on acceptable terms, the Company’s
energy business. In order to obtain the necessary approvals for
acquisitions, E.ON may be required to divest other parts of its
business or to make concessions or undertakings that affect its
business. In addition, there can be no assurance that E.ON will be
able to achieve the returns expected from any acquisition or
investment. It is also possible that E.ON will not be able to realize
its strategic ambition of enlarging its investment pipeline and that
significant amounts of capital could be used for other
opportunities. The overall risk position in this category was
moderate at the balance-sheet date; the chance position was low.

Furthermore, acquisitions and investments in new geographic
areas or lines of business require E.ON to become familiar with
new sales markets and competitors and to address the attending
business risks.

In the case of planned disposals, E.ON faces the risk of disposals
not taking place or being delayed and the risk that E.ON receives
lower-than-anticipated disposal proceeds. In addition, after
transactions close E.ON could face major liability risks resulting
from contractual obligations (tail/major).

current obligations (particularly pension and asset-retirement
obligations) could, in individual cases, be major.

In principle, E.ON could also encounter tax risks and chances.

Finance and Treasury Risks
E.ON is exposed to credit risk in its operating activities and through
the use of financial instruments. Credit risk results from non-
delivery or partial delivery by a counterparty or customer of the
agreed consideration for services rendered, from total or partial
failure to make payments owed on existing accounts receivable,
and from replacement risks in open transactions.

E.ON‘s international business operations are exposed to risks from
currency fluctuation. One form of this risk is transaction risk,
which arises when payments are made in a currency other than
E.ON’s functional currency. Another form of risk is translation risk,
which arises when currency fluctuations lead to accounting effects
when assets/liabilities and income/expenses of E.ON companies
outside the eurozone are translated into euros and entered into
E.ON’s Consolidated Financial Statements. Positive developments
in foreign-currency rates can also create chances for E.ON’s
operating business.

E.ON faces earnings risks relating to net income from financial
liabilities, planned funding, and interest-rate derivatives that are
based on variable interest rates and from non-current asset-
retirement obligations.

Derivative transactions may result in short-term cash inflows or
outflows. This relates in particular to margin payments for
electricity and gas procurement transactions on energy exchanges.
The additional liquidity requirements potentially resulting from this
are factored into E.ON’s financing strategy.

This category has a medium risk and a medium chance position.

Furthermore, declining or rising discount rates could lead to
increased or reduced provisions for pensions and asset-retirement
obligations, including non-current liabilities (tail, major). This can
create a high balance-sheet risk for E.ON.

Refinancing terms on debt capital markets depend in part on rating
agencies’ credit ratings. Rating agencies Moody’s, S&P, and Fitch
have given E.ON a strong investment-grade rating. E.ON has
contracts that would trigger additional collateral requirements if
certain rating levels were not met. Consequently, significant rating
downgrades could lead to additional liquidity requirements
(tail/high). On the other hand, positive business performance or
further debt reduction could have a positive impact on E.ON’s
rating.

ESG Risks and Chances
► E.ON strives to operate responsibly at all times and therefore
monitors all the material impacts of its business activities.
Alongside financial aspects, E.ON also considers environmental,
social, and governance (“ESG”) aspects along its value chain. This
encompasses monitoring and assessing ESG risks and chances as
well as their possible impact on the E.ON Group, but also the
impact of E.ON’s business activities on the climate, the
environment, employees, suppliers, and customers. The
systematic consideration of non-financial issues enables the
Company to identify opportunities and risks for business
development at an early stage.

In addition, the price changes and other uncertainty relating to the
current and non-current investments E.ON makes to cover its non-

E.ON has integrated the reporting of non-financial risks related to
ESG and their impact on the Group into the ERM. All risks and
chances related to ESG are made identifiable in the ERM system.

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Management Board’s Evaluation of the Risk and
Chances Situation

The E.ON Group’s overall risk and chances situation at year-end
2023 changed significantly relative to year-end 2022, in particular
because of lower commodity prices. Although the maximum
annual risk for the E.ON Group’s adjusted EBITDA over the period
under consideration remains classified as major and despite the
major counterparty risks and risks resulting from lawsuits and
legal proceeding relating to contract and price adjustments at
Customer Solutions, from today’s perspective E.ON does not
perceive any risk profile that could threaten the existence of E.ON
SE, the E.ON Group, or individual segments.

→ About this Report

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Governance

→ Sustainable Finance

→ Business Report

→ Forecast Report

→ Risks and Chances Report

→ Internal Control System

→ Disclosures Regarding Takeovers

E.ON views ESG risks as factors in the known risk categories listed
below. Sustainability risks can have a considerable impact on all of
these known risk categories and can be a factor in contributing to
their materiality.

adaptation are identified in the risk management process. This
basic approach to identifying any potential harm to climate change
adaptation is verified in consultation with relevant specialist
departments.

In addition, E.ON analyzes potential reportable risks within the
meaning of Section 289c, Paragraph 3, Sentence 1, Items 3 and 4
of the German Commercial Code (German abbreviation: “HGB“),
while taking into account its ESG materiality analysis,
management approaches, and the ERM’s findings. This involves
considering risks relating to environmental, employee, and social
matters as well as human rights, anticorruption, and antibribery.
At year-end 2023, E.ON had not identified any major risks related
to its own business activities and business relationships as well as
products and services pursuant to Section 289c, Paragraph 3,
Sentence 1, Items 3 and 4 of the HGB that are very likely to have
or will have serious negative impacts on ESG aspects.

In addition, in 2021 E.ON for the first time developed a qualitative
scenario analysis describing the impact of three different climate
scenarios on E.ON and on individual E.ON business units through
2050. This involved defining three reference scenarios
(conservative, ambitious, and fully committed) and assessing and
identifying the relevant business units on the basis of key value
drivers and related key performance indicators (“KPIs”). The next
step was to develop a qualitative scenario impact analysis by
analyzing the key value drivers identified by the business units and
by performing a risk assessment as well as by evaluating the
business impacts. The last step was to develop strategic
recommendations.

E.ON places an emphasis on analyzing its climate risks, in part
because of E.ON’s support of the recommendations of the Task
Force on Climate-Related Financial Disclosures (“TCFD“).
Safeguarding its assets against climate-change impacts and the
climate resilience of its business model are economically relevant
to E.ON. Our analysis therefore includes both physical risks (direct
impacts of climate change, such as extreme weather and rising
temperatures) and transitory risks resulting from the transition to
a low-carbon and more climate-resilient economy (such as
changes in consumer preferences, the regulatory environment, and
carbon pricing).

Physical climate risks are also the focus of the EU Taxonomy
Regulation’s do-no-significant-harm (“DNSH“) provisions (see the
“EU Taxonomy” chapter). They are assigned to the EU
environmental objective 2 “climate change adaptation.“ E.ON
assesses DNSH compliance with climate change adaptation at the
Group level. Each E.ON Group business unit is required to
comprehensively assess and record climate risks as part of its risk
reporting. Any risks that significantly jeopardize climate change

This scenario analysis was enlarged in 2022 and applied to the
climate risks defined in the EU taxonomy. First, E.ON’s main EU
taxonomy-aligned economic activities and its companies making
the main contribution to the corresponding investments were
identified centrally. Next, these companies used a bottom-up
process to determine the climate risks for the relevant economic
activities or investments in accordance with the EU taxonomy
catalog. These risks were then subjected to a scenario analysis. A
qualitative risk assessment was performed for each identified
climate risk and economic activity in line with the IPCC scenarios
SSP1-2.6 and SSP5-8.5 for the reference period 2041 to 2060.
We conducted an update of the scenario analysis for the 2023
financial year. The findings of this risk assessment do not differ in
nature from the risks already reported and managed in the ERM.
As for the amount of damage estimated in the scenario analysis, in
2023 there were again no significant deviations from the century
events for weather or climate risks already reported in the ERM. ◄

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Disclosures Pursuant to Section 289, Paragraph 4,
and Section 315, Paragraph 4 of the German
Commercial Code on the Internal Control System for
the Accounting Process

General Principles

E.ON applies Section 315e, Paragraph 1, of the German
Commercial Code (German abbreviation: “HGB”) and prepares its
Consolidated Financial Statements in accordance with
International Financial Reporting Standards (“IFRS”) and the
interpretations of the IFRS Interpretations Committee (“IFRSIC”)
that were adopted by the European Commission for use in the EU
as of the end of the fiscal year and whose application was
mandatory as of the balance-sheet date (see Note 1 to the
Consolidated Financial Statements). Energy Networks (Germany,
Sweden, and East-Central Europe/Turkey), Customer Solutions
(Germany, United Kingdom, the Netherlands, Other), and
Corporate Functions/Other are the Company’s IFRS reportable
segments.

E.ON SE prepares its Financial Statements in accordance with the
German Commercial Code, the SE Ordinance (in conjunction with
the German Stock Corporation Act), and the German Energy Act.

E.ON prepares a Combined Group Management Report which
applies to both the E.ON Group and E.ON SE.

Accounting Process

regulatory obligations. E.ON regularly analyzes amendments to
laws, new or amended accounting standards, and other important
pronouncements for their relevance to, and consequences for, the
Consolidated Financial Statements and, if necessary, update its
guidelines and systems accordingly.

Corporate Functions defines and oversees the roles and
responsibilities of various Group entities in the preparation of E.ON
SE’s Financial Statements and the Consolidated Financial
Statements. These roles and responsibilities are described in a
Group Policy document.

E.ON Group companies are responsible for preparing their financial
statements in a proper and timely manner. They receive
substantial support from Business Service Centers in Regensburg,
Germany; Cluj, Romania; and Kraków, Poland. E.ON SE combines
the financial statements of subsidiaries belonging to its scope of
consolidation into its Consolidated Financial Statements using
standard consolidation software. Group Accounting is responsible
for conducting the consolidation and for monitoring adherence to
the guidelines for scheduling, processes, and contents. Monitoring
by means of system-based automated controls is supplemented
by manual checks.

In conjunction with the year-end closing process, additional
qualitative and quantitative information relevant for accounting is
compiled. Furthermore, dedicated quality-control processes are in
place for all relevant departments to discuss and ensure the
completeness of important information on a regular basis.

All companies included in the Consolidated Financial Statements
must comply with E.ON’s uniform Accounting and Reporting
Guidelines for the Annual Consolidated Financial Statements and
the Interim Consolidated Financial Statements. These guidelines
describe applicable IFRS accounting and valuation principles. They
also explain accounting principles typical in the E.ON Group, such
as those for provisions for nuclear-waste management, the
treatment of financial instruments, and the treatment of

E.ON SE’s Financial Statements are prepared with SAP software.
The accounting and preparation processes are divided into discrete
functional steps. Bookkeeping processes have largely been
outsourced to E.ON’s Business Service Centers. Cluj has the
primary responsibility for processes relating to subsidiary ledgers
and several bank activities. Regensburg has the principal
responsibility for processes relating to the general ledgers.
Automated or manual controls are integrated into each step.

Defined procedures ensure that all transactions and the
preparation of E.ON SE’s Financial Statements are recorded,
processed, assigned on an accrual basis, and documented in a
complete, timely, and accurate manner. Relevant data from E.ON
SE’s Financial Statements are, if necessary, adjusted to conform
with IFRS and then transferred to the consolidation software
system using SAP-supported transfer technology.

The following explanations about E.ON’s internal control system
(“ICS”) and its general IT controls apply equally to the Consolidated
Financial Statements and to E.ON SE’s Financial Statements.

Internal Control System

The purpose of the ICS framework and the annual ICS process is to
provide sufficient assurance to prevent error or fraud from
resulting in material misrepresentations in the Financial
Statements, the Combined Group Management Report, the Half-
Year Financial Report, the Quarterly Statements, as well as ESG
reporting. Furthermore, it serves to assure compliance to
significant internal and external regulations and to assure
effectiveness and efficiency of business activities. The
management of each unit in the E.ON Group is legally responsible
for establishing and maintaining an adequate and effective internal
control system (“ICS”). The Compliance function is responsible for
the implementation of the compliance management system
(“CMS”) which is described in the Corporate Governance
Declaration. The Corporate Governance Declaration can be found
on the E.ON website www.eon.com in the Corporate Governance
section under "Corporate Governance Declaration." The ICS
department at Corporate Audit is responsible for the oversight and
coordination of the overall ICS process in order to ensure an
effective ICS in the E.ON Group. For this purpose, the ICS
department at Corporate Audit provides the ICS framework and
the necessary tools. An ICS Business Partner (“ICS BP”) is assigned
to each unit that is of importance to the E.ON Group and therefore
in the ICS documentation scope. The ICS BP is responsible for
coordinating and monitoring the unit’s ICS activities and advises

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and supports management in implementing an effective internal
control system. The unit’s management remains responsible for
the appropriateness and effectiveness of the implemented ICS.
The ICS BP system ensures a uniform approach as well as
consistent and efficient collaboration and fosters continuous
improvement by means of extensive information-sharing among
Group companies.

E.ON’s ICS Framework
E.ON’s ICS is based on the globally recognized COSO framework
from May 2013 (COSO: The Committee of Sponsoring
Organizations of the Treadway Commission).

The catalog of ICS Principles, which defines the minimum
requirements for an effective internal control system, is a key
component of E.ON’s ICS. It contains overarching principles such
as authorization, segregation of duties, and master data
management as well as specific requirements for managing
potential risks in various areas and processes, such as supplier
monitoring, project management, invoice verification, payments,
and ESG reporting. All fully consolidated companies and majority-
owned units are subject to the ICS Principles.

In addition to the ICS Principles, certain units of special importance
to the E.ON Group’s Consolidated Financial Statements must fulfill
several additional ICS requirements for selected processes. These
requirements relate to the documentation and assessment of the
relevant processes and controls—the ICS model—as well as
reporting to Corporate Audit. The ICS model, which incorporates
company- and industry-specific aspects, defines potential risks for
accounting (financial reporting), for ESG reporting (non-financial
reporting), for compliance with important internal and external
rules, and for the operating units of their operating targets, and
serves as a checklist, and provides guidance for the establishment
of internal controls as well as their documentation and
implementation.

A functionally managed digital organization and third-party service
providers provide IT and digital services for the E.ON Group. IT
systems used for accounting as well as IT systems relevant for the
ESG-Reporting are subject to the internal control system
framework, which includes IT general controls, such as access
controls, segregation of duties, processing controls, measures to
prevent the intentional and unintentional falsification of the
programs, data, and documents as well as controls related to
supplier monitoring. The documentation of the IT general controls
is stored in E.ON’s documentation system.

Each year, qualitative criteria and quantitative materiality aspects
are used to determine which processes and controls must be
documented and assessed by which E.ON units.

E.ON units in the ICS documentation scope use a central
documentation system (SAP-GRC) for this purpose. The system
contains the scope, detailed documentation requirements, the
assessment requirements for process owners, and the final Sign-
Off process.

Management Self-Assessment and Control Tests
After E.ON units have documented their processes and controls,
the individual process owners conduct an annual assessment of
the design and the operational effectiveness of the controls
embedded in these processes and the ICS principles. This is known
as a management self-assessment. The assessment is supported
by tests of control effectiveness for selective risk areas. Corporate
Audit’s ICS department defines the methodology for these tests,
which are conducted by the process owners or employees
assigned by them.

In addition, the effectiveness of the internal controls is audited by
Internal Audit. These audits are conducted based on a risk-oriented
audit plan. Any identified deficiencies are reported to the relevant
companies.

Furthermore, the E.ON Group’s general IT controls that are
relevant for the Consolidated Balance Sheets, selected controls of
the Business Service Centers in Regensburg and Cluj, selected
controls of the Human Resources Service Center in Germany
(E.ON Country Hub Germany GmbH), and selected controls of the
Pension Service Company in Germany (Energie Pensions-
Management GmbH) were audited as part of the audit of the
Group’s Consolidated Financial Statements.

The findings of the management self-assessments and the audits
are included in the integrated annual report on the effectiveness of
the entire E.ON Group’s ICS and are reported to the E.ON SE
Management Board.

Sign-Off Process
Based on the self-assessment result and internal and external
audit findings, the respective management of the unit conducts
the final Sign-Off. The final step of the internal evaluation process
is the submission of a formal written declaration confirming the
ICS’s effectiveness (“Sign-Off”). The Sign-Off process is conducted
at all levels of the Group companies before E.ON SE, as the final
step, conducts it for the Group as a whole. The Chairman of the
E.ON SE Management Board and the Chief Financial Officer
perform the final Sign-Off for the E.ON Group.

Corporate Audit regularly informs the E.ON SE Supervisory
Board’s Audit & Risk Committee about the ICS for financial
reporting and about any significant deficiencies identified in the
E.ON Group’s various processes.

Statement on the E.ON Group's Internal Control
System and Risk Management System in the
Narrower Sense (Enterprise Risk Management)

› The entire E.ON SE Management Board affirms that it is aware of
its responsibility to establish and maintain an appropriate and
effective internal control system (“ICS”) and enterprise risk
management (“ERM”) system for the E.ON Group. We work to

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→ Forecast Report

→ Risks and Chances Report

continually enhance the ICS and ERM in order to eliminate
identified weaknesses and ensure the ongoing improvement of
processes and systems. The entire Management Board is not
aware of any circumstances arising from its examination of the ICS
and ERM system and the reporting of the Corporate Audit and
Group Risk functions that speak against the appropriateness and
effectiveness of these systems in all material respects. ‹

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Disclosures Pursuant to Section 289a and
Section 315a of the German Commercial Code and
Explanatory Report

Composition of Share Capital

The share capital totals €2,641,318,800 and consists of
2,641,318,800 registered shares without nominal value. Each
share of stock grants the same rights and one vote at a
Shareholders Meeting.

Restrictions on Voting Rights or the Transfer of
Shares

An employee stock-purchase program was offered in 2021 and
2022. Shares acquired by employees under the employee stock-
purchase program are subject to a blackout period that begins the
day ownership of such shares is transferred to the employee and
that ends on December 31 of the next calendar year plus one. As a
rule, an employee may not sell such shares until the blackout
period has expired.

Pursuant to Section 71b of the German Stock Corporation Act
(German abbreviation: “AktG”), the Company’s treasury shares
give it no rights, including no voting rights.

Legal Provisions and Rules of the Company’s Articles
of Association Regarding the Appointment and
Dismissal of Management Board Members and
Amendments to the Articles of Association

Pursuant to the Company’s Articles of Association, the
Management Board consists of at least two members. The
Supervisory Board decides on the number of members as well as
on their appointment and dismissal.

The Supervisory Board appoints members to the Management
Board for a term not exceeding five years; reappointment is

permissible. If several persons are appointed as members of the
Management Board, the Supervisory Board may appoint one of the
members as Chairperson of the Management Board. If there is a
vacancy on the Management Board for a required member, the
court makes the necessary appointment upon petition by a
concerned party in the event of an urgent matter. The Supervisory
Board may revoke the appointment of a member of the
Management Board and of the Chairperson of the Management
Board for serious cause (for further details, see Sections 84 and 85
of the AktG).

Resolutions of the Shareholders Meeting require a majority of the
valid votes cast unless mandatory law or the Articles of
Association explicitly prescribe otherwise. An amendment to the
Articles of Association requires a two-thirds majority of the votes
cast or, in cases where at least half of the share capital is
represented, a simple majority of the votes cast unless mandatory
law explicitly prescribes another type of majority.

The Supervisory Board is authorized to decide by resolution on
amendments to the Articles of Association that affect only their
wording (Section 10, Paragraph 7, of the Articles of Association).

Furthermore, the Supervisory Board is authorized to revise the
wording of Section 3 of the Articles of Association upon utilization
of authorized or conditional capital.

Management Board’s Power to Issue or Buy Back
Shares

Pursuant to a resolution of the Shareholders Meeting of May 28,
2020, the Management Board is authorized, until May 27, 2025,
to have the Company acquire treasury shares. The shares acquired
and other treasury shares that are in possession of or to be
attributed to the Company pursuant to Sections 71a et seq. of the
AktG must altogether at no point account for more than 10
percent of the Company’s share capital.

At the Management Board’s discretion, the acquisition may be
conducted:

• through a stock exchange

• by means of a public offer directed at all shareholders or a public

solicitation to submit offers

• by means of a public offer or a public solicitation to submit
offers for the exchange of liquid shares that are admitted to
trading on an organized market, within the meaning of the
German Securities Purchase and Takeover Law, for Company
shares

• by the use of derivatives (put or call options or a combination of

both).

These authorizations may be utilized on one or several occasions,
in whole or in partial amounts, in pursuit of one or more objectives
by the Company and also by its affiliated companies or by third
parties for the Company’s account or one of its affiliates’ account.

With regard to treasury shares that will be, or have been, acquired
based on the aforementioned authorization and/or prior
authorizations by the Shareholders Meeting, the Management
Board is authorized, subject to the Supervisory Board’s consent
and excluding shareholder subscription rights, to use these
shares—in addition to a disposal through a stock exchange or an
offer granting a subscription right to all shareholders—as follows:

• to be sold and transferred against cash consideration

• to be sold and transferred against contributions in kind

• to be used in order to satisfy the rights of creditors of bonds
with conversion or option rights or, respectively, conversion
obligations issued by the Company or its Group companies

131

E.ON Integrated Annual Report 2023

Combined Group Management Report

Contents

Back

→ About this Report
→ Governance
→ Internal Control System

→ Sustainable Finance

→ Business Report
→ Disclosures Regarding Takeovers

→ Corporate Profile

→ Climate Protection and Environmental Management

→ Employees and Society

→ Forecast Report

→ Risks and Chances Report

• to be offered, with or without consideration, for purchase and
transferred to individuals who are or were employed by the
Company or one of its affiliates as well as to board members of
affiliates of the Company

• to be used for the purpose of a scrip dividend where

shareholders may choose to contribute their dividend
entitlement to the Company in the form of a contribution in kind
in exchange for new shares.

In addition, the Management Board is authorized to cancel
treasury shares, without such cancellation or its implementation
requiring an additional resolution by the Shareholders Meeting.

These authorizations may be utilized on one or several occasions,
in whole or in partial amounts, separately or collectively, including
with respect to treasury shares acquired by affiliated companies or
companies majority-owned by the Company or by third parties for
their account or the Company’s account.

In each case, the Management Board will inform the Shareholders
Meeting about the utilization of the aforementioned authorization,
in particular about the reasons for and the purpose of the
acquisition of treasury shares, the number of treasury shares
acquired, the amount of the registered share capital attributable to
them, the portion of the registered share capital represented by
them, and their equivalent value.

By shareholder resolution adopted at the Annual Shareholders
Meeting of May 28, 2020, the Management Board was authorized,
subject to the Supervisory Board’s approval, to increase, until May
27, 2025, the Company’s share capital by a total of up to €528
million through one or more issuances of new registered no-par-
value shares against contributions in cash and/or in kind
(authorized capital pursuant to Sections 202 et seq. of the AktG;
“Authorized Capital 2020”). Subject to the Supervisory Board’s
approval, the Management Board is authorized to exclude
shareholders’ subscription rights.

At the Annual Shareholders Meeting of May 28, 2020,
shareholders approved a conditional increase of the Company’s
share capital (with the option to exclude shareholders’ subscription
rights) up to the amount of €264 million (“Conditional Capital
2020”). Note 20 to the Consolidated Financial Statements
contains more information about Conditional Capital 2020.

severance payments are limited to the amount of the annual
compensation for the remaining term of the service agreement.
Total compensation for the past financial year and the expected
total compensation for the current financial year in which the
service agreement ends prematurely are used to calculate the
severance payment cap.

The purpose of these contractual agreements is to preserve the
independence of Management Board members.

A change-of-control event would also result in the early payout of
virtual shares under the E.ON Performance Plan.

Other Disclosures Regarding Takeovers

The Company has been notified about the following direct or
indirect interests in its share capital that exceed 10 percent of the
voting rights:

• notification on December 10, 2020, by RWE Aktiengesellschaft

for 15 percent of the voting rights.

Stock with special rights granting power of control has not been
issued. In the case of stock given by the Company to employees,
employees exercise their rights of control directly and in
accordance with legal provisions and the provisions of the Articles
of Association, just like other shareholders.

Significant Agreements to Which the Company Is a
Party That Take Effect on a Change of Control of the
Company Following a Takeover Bid

The underlying contracts of debt issued since 2007 contain
change-of-control clauses that give the creditor the right of
cancellation. This applies, inter alia, to bonds issued by E.ON SE
and E.ON International Finance B.V. and guaranteed by E.ON SE
and other instruments such as credit contracts. Granting change-
of-control rights to creditors is considered good corporate
governance and has become standard market practice. More
information about financial liabilities is contained in the section of
the Combined Group Management Report entitled Financial
Situation and in Note 27 to the Consolidated Financial Statements.

Settlement Agreements between the Company and
Management Board Members or Employees in the
Case of a Change-of-Control Event

In the event of a premature loss of a Management Board position
due to a change-of-control event, the service agreements of
Management Board members entitle them to severance and
settlement payments. The entitlement exists if, within 12 months
of the change of control, a Management Board member’s service
agreement is terminated by mutual consent, expires, or is
terminated by the Management Board member; in the latter case,
however, only if the member’s Management Board position is
materially affected by the change of control. Management Board
members’ severance payment consists of their base salary and
target bonus plus fringe benefits for two years after termination of
their service agreement. In accordance with the DCGK, these

132

E.ON Integrated Annual Report 2023

Contents

Back

(30) Supplemental Cash Flow Disclosures
(31) Derivative Financial Instruments and Hedging
Transactions
(32) Additional Disclosures on Financial Instruments
(33) Leasing
(34) Transactions with Related Parties
(35) Segment Reporting
(36) Compensation of Supervisory Board and
Management Board
(37) Subsequent Events
(38) List of Shareholdings Pursuant to Section 313 (2)
HGB

201

203
206
218
220
221

227
227

228

Consolidated Financial Statements

Consolidated Statement of Income

Consolidated Statement of Recognized Income and
Expenses

Consolidated Balance Sheets

Consolidated Statement of Cash Flows

Consolidated Statement of Changes in Equity

Notes

(1) Summary of Significant Accounting Policies
(2) New Standards, Interpretations and Amendments
(3) Impact of the War in Ukraine and the Development of
the Commodity Markets
(4) Scope of Consolidation
(5) Material Acquisitions, Disposals and Disposal Groups
in 2023
(6) Revenues
(7) Own Work Capitalized
(8) Other Operating Income and Expenses
(9) Cost of Materials

134

135

136

138

140

142

142
153

155
155

155
157
157
157
158

167

159
160
164
166
166

(10) Financial Results
(11) Income Taxes
(12) Personnel-Related Information
(13) Other Information
(14) Earnings per Share
(15) Goodwill, Intangible Assets, Right-of-use Assets and
Property, Plant and Equipment
(16) Companies Accounted for under the Equity Method
172
and Other Financial Assets
177
(17) Inventories
177
(18) Receivables and Other Assets
178
(19) Liquid Funds
178
(20) Capital Stock
181
(21) Additional Paid-in Capital
181
(22) Retained Earnings
181
(23) Changes in Other Comprehensive Income
182
(24) Non-Controlling Interests
184
(25) Provisions for Pensions and Similar Obligations
190
Description of the Pension Cost
191
Description of the Net Defined Benefit Liability
192
(26) Miscellaneous Provisions
195
(27) Liabilities
(28) Contingent Liabilities and Other Financial Obligations 200
201
(29) Litigation and Claims

133

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income
→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Changes in Equity

→ Notes

Consolidated Statement of Income
€ in millions
Sales including electricity and energy taxes
Electricity and energy taxes
Sales
Changes in inventories (finished goods and work in progress)
Own work capitalized
Other operating income
Cost of materials
Personnel costs
Depreciation, amortization and impairment charges
Other operating expenses

Thereof: Impairments of financial assets

Income from companies accounted for under the equity method
Income/loss from equity investments
Income from continuing operations before interest results and income taxes
Interest results

Income from other securities, interest and similar income
Interest and similar expenses

Income taxes
Income from continuing operations
Income/loss from discontinued operations, net
Net income

Attributable to shareholders of E.ON SE
Attributable to non-controlling interests

in €
Earnings per share (attributable to shareholders of E.ON SE)—basic and diluted1
from continuing operations
from discontinued operations
from net income
Weighted-average number of shares outstanding (in millions)
1Based on weighted-average number of shares outstanding.

Note

(6)

(7)
(8)
(9)
(12)
(15)
(8)

(10)

(11)

(5)

(14)

2023
95,404
-1,718
93,686
79
1,334
38,888
-64,228
-6,010
-3,514
-59,548
-984
478
30
1,195
-1,094
1,291
-2,385
598
699
61
760
517
243

2022
117,122
-1,462
115,660
126
997
73,193
-108,627
-5,437
-3,378
-71,736
-660
279
-7
1,070
927
2,552
-1,625
245
2,242
–
2,242
1,831
411

0.18
0.02
0.20
2,611

0.70
–
0.70
2,609

Consolidated Statement of Income

134

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Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income
→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Changes in Equity

→ Notes

Consolidated Statement of Recognized Income and Expenses
€ in millions
Net income
Remeasurements of defined benefit plans
Remeasurements of defined benefit plans of companies accounted for under the equity method
Income taxes
Items that will not be reclassified subsequently to the income statement
Cash flow hedges

Unrealized changes—hedging reserve
Unrealized changes—reserve for hedging costs
Reclassification adjustments recognized in income

Fair value measurement of financial instruments

Unrealized changes
Reclassification adjustments recognized in income

Currency-translation adjustments

Unrealized changes—hedging reserve/other
Unrealized changes—reserve for hedging costs
Reclassification adjustments recognized in income

Companies accounted for under the equity method

Unrealized changes
Reclassification adjustments recognized in income

Income taxes
Items that might be reclassified subsequently to the income statement
Total income and expenses recognized directly in equity (other comprehensive income)
Total recognized income and expenses (total comprehensive income)

Attributable to shareholders of E.ON SE
Continuing operations
Discontinued operations
Attributable to non-controlling interests

Consolidated Statement of Recognized Income and Expenses

2023
760
-1,427
149
272
-1,006
-675
-139
13
-549
76
39
37
-15
-10
2
-7
328
328
–
217
-69
-1,075
-315
-445
-506
61
130

2022
2,242
2,426
25
-277
2,174
1,591
1,555
9
27
-155
-164
9
-491
-431
-18
-42
591
593
-2
-325
1,211
3,385
5,627
4,826
4,826
–
801

135

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income
→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Changes in Equity

→ Notes

Consolidated Balance Sheet—Assets

€ in millions
Goodwill
Intangible assets
Right-of-use assets
Property, plant and equipment
Companies accounted for under the equity method
Other financial assets
Equity investments
Non-current securities

Financial receivables and other financial assets
Operating receivables and other operating assets
Deferred tax assets
Income tax assets
Non-current assets
Inventories
Financial receivables and other financial assets
Trade receivables and other operating assets
Income tax assets
Liquid funds

Securities and fixed-term deposits
Restricted liquid funds
Cash and cash equivalents

Assets held for sale
Current assets
Total assets

Note
(15)
(15)
(33)
(15)
(16)
(16)

(18)
(18)
(11)
(11)

(17)
(18)
(18)
(11)
(19)

(5)

Consolidated Balance Sheets

2023
17,126
3,592
2,710
40,749
6,653
3,738
2,561
1,177
1,079
3,850
3,505
32
83,034
1,940
1,085
19,005
1,030
7,412
1,375
452
5,585
0
30,472
113,506

December 31,
2022
17,017
3,453
2,377
37,419
5,532
3,538
2,191
1,347
1,034
9,286
2,079
34
81,769
2,204
1,819
36,447
851
9,376
1,600
452
7,324
1,543
52,240
134,009

136

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income
→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Changes in Equity

→ Notes

Consolidated Balance Sheet—Equity and Liabilities

€ in millions
Capital stock
Additional paid-in capital
Retained earnings
Accumulated Other Comprehensive Income
Treasury shares
Equity attributable to shareholders of E.ON SE
Non-controlling interests (before reclassification)
Reclassification related to IAS 32
Non-controlling interests
Equity
Financial liabilities
Operating liabilities
Income tax liabilities
Provisions for pensions and similar obligations
Miscellaneous provisions
Deferred tax liabilities
Non-current liabilities
Financial liabilities
Trade payables and other operating liabilities
Income tax liabilities
Miscellaneous provisions
Liabilities associated with assets held for sale
Current liabilities
Total equity and liabilities

Note
(20)
(21)
(22)
(23)
(20)

(24)

(27)
(27)
(11)
(25)
(26)
(11)
(27)
(27)
(27)
(11)
(26)
(5)

2023
2,641
13,327
1,491
-2,303
-1,042
14,114
7,024
-1,168
5,856
19,970
30,823
8,316
548
4,985
9,028
2,223
55,923
4,617
27,397
733
4,866
–
37,613
113,506

December 31,
2022
2,641
13,338
3,217
-2,206
-1,067
15,923
7,032
-1,088
5,944
21,867
28,965
10,910 1
298
3,735
11,233
2,793
57,934
5,186
42,147 1
584
5,528
763
54,208
134,009

1The presentation of the maturities of liabilities from derivative financial instruments was adjusted by €16.7 billion as of December 31, 2022, from non-current to current within the meaning of IAS 8.41 ff.
This relates to energy procurement and sales contracts that are not classified as own-use contracts under IFRS 9 and are accounted for as commodity derivatives.

137

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income
→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Changes in Equity

→ Notes

Consolidated Statement of Cash Flows
€ in millions
Net income
Income/loss from discontinued operations, net
Depreciation, amortization and impairment of intangible assets and of property, plant and equipment
Changes in provisions
Changes in deferred taxes
Other non-cash income and expenses
Gain/loss on disposal of intangible assets and property, plant and equipment, equity investments and securities (>3 months)
Changes in operating assets and liabilities and in income taxes

Inventories
Trade receivables
Other operating receivables and income tax assets
Trade payables
Other operating liabilities and income taxes

Cash provided by (used for) operating activities of continuing operations
Cash provided by (used for) operating activities of discontinued operations
Cash provided by (used for) operating activities (operating cash flow)
Proceeds from disposal of intangible assets and property, plant and equipment
Proceeds from disposal of equity investments
Purchases of investments in intangible assets and property, plant and equipment
Purchases of investments in equity investments
Proceeds from disposal of securities (>3 months) and of financial receivables and fixed-term deposits
Purchases of securities (>3 months) and of financial receivables and fixed-term deposits

Consolidated Statement of Cash Flows

2023
760
-61
3,514
-2,704
-1,546
1,065
7
4,619
266
-688
22,917
-2,997
-14,879
5,654
–
5,654
221
24
-6,010
-411
2,659
-2,069

2022
2,242
–
3,378
-8,113
-812
1,615
-768
12,503
-1,169
-1,081
-5,678
5,455
14,976
10,045
–
10,045
302
760
-4,576
-177
1,533
-1,264

138

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income
→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Changes in Equity

→ Notes

Consolidated Statement of Cash Flows
€ in millions
Changes in restricted liquid funds
Cash provided by (used for) investing activities of continuing operations
Cash provided by (used for) investing activities of discontinued operations
Cash provided by (used for) investing activities
Payments received/made from changes in capital
Cash dividends paid to shareholders of E.ON SE
Cash dividends paid to non-controlling interests
Proceeds from financial liabilities
Repayments of financial liabilities
Cash provided by (used for) financing activities of continuing operations
Cash provided by (used for) financing activities of discontinued operations
Cash provided by (used for) financing activities
Net increase/decrease in cash and cash equivalents
Effect of foreign exchange rates on cash and cash equivalents
Cash and cash equivalents at the beginning of the year1
Cash and cash equivalents of discontinued operations at the beginning of the period
Cash and cash equivalents at the end of the period
Less: Cash and cash equivalents of discontinued operations at the end of the period
Cash and cash equivalents of continuing operations at the end of the period2

2023
-2
-5,588
–
-5,588
30
-1,331
-297
5,347
-5,593
-1,844
–
-1,844
-1,778
27
7,336
–
5,585
–
5,585

2022
276
-3,146
–
-3,146
-13
-1,278
-306
6,488
-8,037
-3,146
–
-3,146
3,753
-59
3,642
–
7,336
–
7,336

1Cash and cash equivalents of continuing operations at the beginning of the period also include €12 million attributable to VSEH Group that was desconsolidated in the fourth quarter of 2023 (previous
year: €8 million).
2Cash and cash equivalents of continuing operations at the end of the period of the previous year also include €12 million attributable to VSEH Group that was deconsolidated in the fourth quarter of 2023.

139

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Consolidated Statement of Changes in Equity
€ in millions

Changes in accumulated other comprehensive income

Currency translation
adjustments

Cash flow hedges

Capital
stock

Additional
paid-in
capital

Retained
earnings

Hedging
reserve/
other

Reserve for
hedging
costs

Fair value
measure-
ment of
financial
instruments

Hedging
reserve

Reserve for
hedging
costs

Treasury
shares

Equity
attributable
to share-
holders
of E.ON SE

Non-
controlling
interests
(before
reclassi-
fication)

Reclassifi-
cation
related
to IAS 32

Non-
controlling
interests

2,641
0
2,641

13,353
0
13,353

-15

1,228
-381
847
34

-1,278
45

3,569
1,831
1,738

1,738

-3,072
612
-2,460

16
0
16

34
0
34

-1,036
0
-1,036
0

-18

-2

-94

-60

1,336

1,336
300

-17
0
-17

-8

-1,094
0
-1,094

12,053
231
12,284
34
12
-1,278
45

4,826
1,831
2,995

1,738

6,623
0
6,623
-4

-320

-68

801
411
390

436

-787
0
-787

-301

5,836
0
5,836
-4

-320

-68

-301
801
411
390

Total
17,889
231
18,120
30
12
-1,598

-23

-301
5,627
2,242
3,385

436

2,174

2,641

13,338

3,217

-2,436

-1,067

1,257
15,923

-46
7,032

-1,088

-46
5,944

1,211
21,867

Balance as of December 31, 2021
IAS 29 adjustment
Balance as of January 1, 2022
Change in scope of consolidation
Treasury shares repurchased/sold
Dividends
Share additions/reductions
Net additions/disposals from
reclassification related to IAS 32
Total comprehensive income
Net income/loss
Other Comprehensive Income
Remeasurement of
defined benefit plans
Changes in accumulated
other comprehensive
income

Balance as of December 31, 2022

Consolidated Statement of Changes in Equity

140

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Consolidated Financial Statements

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Consolidated Statement of Changes in Equity
€ in millions

Capital
stock
2,641

Additional
paid-in
capital
13,338

-11

Retained
earnings
3,217
-1

-1,331

-46

-348
517
-865

-865

Balance as of January 1, 2023
Change in scope of consolidation
Treasury shares repurchased/sold
Capital increase
Dividends
Share additions/reductions
Net additions/disposals from
reclassification related to IAS 32
Total comprehensive income

Net income/loss
Other Comprehensive Income
Remeasurement of
defined benefit plans
Changes in accumulated
other comprehensive
income

Balance as of December 31, 2023

2,641

13,327

1,491

Changes in accumulated other comprehensive income
Currency translation
adjustments

Cash flow hedges

Fair value
measure-
ment of
financial
instruments

Reserve for
hedging
costs

-2

-60

Hedging
reserve/
other

-2,436

Hedging
reserve
300

Reserve for
hedging
costs

Treasury
shares

-8

-1,067

382

-2,054

2
0

-532

-22

-532

-232

13
5

Equity
attributable
to share-
holders
of E.ON SE
15,923
-1
14

-1,331

-46

-445
517
-962

-865

Non-
controlling
interests
(before
reclassi-
fication)
7,032
69

21
-312
84

130
243
-113

-141

Reclassifi-
cation related
to IAS 32

-1,088

Non-
controlling
interests
5,944
69

-80

21
-312
84

-80
130
243
-113

Total
21,867
68
14
21
-1,643
38

-80

-315
760
-1,075

-141

-1,006

-1,042

-97
14,114

28
7,024

-1,168

28
5,856

-69
19,970

141

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Notes

(1) Summary of Significant Accounting Policies

Basis of Presentation

The Consolidated Financial Statements of E.ON SE, Brüsseler Platz
1, 45131 Essen, Germany, registered in the Commercial Register
of Essen District Court under number HRB 28196, have been
prepared in accordance with Section 315e (1) of the German
Commercial Code (“HGB”) and with those International Financial
Reporting Standards (“IFRS”) and IFRS Interpretations Committee
interpretations (“IFRIC”) that were adopted by the European
Commission for use in the EU as of the end of the fiscal year, and
whose application was mandatory as of December 31, 2023. On
March 4, 2024, the Board of Management of E.ON SE approved
the Consolidated Financial Statements as of December 31, 2023,
for publication.

Principles

the nature of expense method, which is also applied for internal
purposes.

rights. Interests in associated companies are accounted for using
the equity method.

Scope of Consolidation
The Consolidated Financial Statements incorporate the financial
statements of E.ON SE and entities controlled by E.ON
(“subsidiaries”). Control exists when the Group is exposed, or has
rights, to variable returns from its involvement with the investee
and has the ability to use its power over the investee to influence
those returns. Control is generally deemed established when a
majority of the voting rights is held. An entity is a structured entity
if control is based on contractual arrangements or other legal
relationships and is not reflected in a majority of voting rights.

Interests in associated companies accounted for using the equity
method are reported on the balance sheet at cost, adjusted for
changes in the Group’s share of the net assets after the date of
acquisition and for any impairment charges. Losses that might
potentially exceed the Group’s interest in an associated company
when attributable long-term loans are taken into consideration are
generally not recognized. Any difference between the cost of the
investment and the pro rata remeasured value of its net assets is
recognized in the Consolidated Financial Statements as part of the
carrying amount.

The results of the subsidiaries acquired or disposed of during the
year are included in the Consolidated Statement of Income from
the date of acquisition or until the date of their disposal,
respectively.

The Consolidated Financial Statements of the E.ON Group (“E.ON”
or the “Group”) are generally prepared at cost, with the exception
of financial assets that are measured at fair value through OCI
(FVOCI), financial assets that are measured at fair value through
profit or loss (FVPL) and financial liabilities that are measured at
fair value through profit or loss (FVPL).

If the issue of shares in subsidiaries or associates to third parties
leads to a reduction in E.ON’s ownership interest in these investees
(“dilution”), and consequently to a loss of control, joint control or
significant influence, gains and losses from these dilutive
transactions are included in the income statement under other
operating income or expenses.

The Consolidated Financial Statements were prepared in euros.
Unless otherwise stated, all amounts are shown in millions of
euros (€ million). For accounting reasons, rounding differences
may occur. These financial statements relate to the financial year
from January 1 to December 31, 2023. In accordance with IAS 1,
“Presentation of Financial Statements” (“IAS 1”), the Consolidated
Balance Sheets have been prepared using a classified balance
sheet structure. Assets that will be realized within 12 months of
the reporting date, as well as liabilities that are due to be settled
within one year of the reporting date are generally classified as
current. The Consolidated Statement of Income is classified using

Where necessary, adjustments are made to the subsidiaries’
financial statements to bring their accounting policies into line
with those of the Group. Intercompany receivables, liabilities and
results are eliminated in the consolidation process.

Associated Companies
An associate is an investee over whose financial and operating
policy decisions E.ON has significant influence and that is not
controlled by E.ON or jointly controlled with E.ON. Significant
influence is presumed if E.ON directly or indirectly holds at least
20 percent, but not more than 50 percent, of an entity’s voting

Companies accounted for using the equity method are tested for
impairment by comparing the carrying amount with its recoverable
amount. If the carrying amount exceeds the recoverable amount,
the carrying amount is adjusted for this difference. If the reasons
for previously recognized impairment losses no longer exist, such
impairment losses are reversed accordingly.

Joint Ventures
Joint ventures are also accounted for using the equity method.
Unrealized gains and losses arising from transactions with joint-
venture companies are eliminated within the consolidation process
on a pro rata basis if they are material.

Joint Operations
A joint operation exists when E.ON and other investors directly
control an operation, but unlike a joint venture, they do not have a
claim to the changes in net assets from the operation. Instead,
they have direct rights to individual assets or direct obligations
with respect to individual liabilities in connection with the
operation. E.ON recognizes assets and liabilities as well as
revenues and expenses in a joint operation pro rata according to
the rights and obligations attributable to E.ON.

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→ Notes

currencies are recognized in net income and reported as other
operating income and other operating expenses, respectively.
Gains and losses from the translation of non-derivative financial
instruments used in hedges of net investments in foreign
operations are recognized in equity as a component of other
comprehensive income. The ineffective portion of the hedging
instrument is immediately recognized in net income.

hyperinflationary economy in terms of the measuring unit current
at the balance sheet date to reflect current purchasing power. As a
result, among other things, non-monetary assets and liabilities are
generally adjusted using a general price index and a gain or loss on
the net monetary position is recognized. For additional information
on the application of IAS 29 in fiscal year 2023, please refer to
Note 16.

Business Combinations
Business combinations are accounted for using the purchase
method, under which the purchase price is offset against the
proportional share in the acquired company’s revalued net assets.
The fair values are determined using published exchange or market
prices at the time of acquisition in the case of marketable
securities or commodities, for example, and in the case of land,
buildings and major technical equipment, generally using
independent expert reports that have been prepared by third
parties. If exchange or market prices are unavailable for
consideration, fair values are derived from market prices for
comparable assets or comparable transactions. If these values are
not directly observable, fair value is determined using appropriate
valuation methods. In such cases, E.ON determines fair value using
the discounted cash flow method by discounting estimated future
cash flows by a weighted-average cost of capital.

The functional currency as well as the reporting currency of E.ON
SE is the euro. The assets and liabilities of Group companies with a
functional currency other than the euro are translated using the
mid-market exchange rates applicable on the balance sheet date.
The income statements of foreign Group companies with a
functional currency other than the euro are translated using annual
average exchange rates. Differences arising from the application of
both rates are recognized directly in equity.

Non-controlling interests can be measured either at cost (partial
goodwill method) or at fair value (full goodwill method). The choice
of method can be made on a case-by-case basis. The partial
goodwill method is generally used within the E.ON Group.

The following table depicts the movements in exchange rates for
the periods indicated for major currencies of countries outside the
European Monetary Union:

Intangible assets must be recognized separately if they are clearly
separable or if their recognition arises from a contractual or other
legal right. Provisions for restructuring measures may not be
recorded in a purchase price allocation. If the purchase price paid
exceeds the proportional share in the revalued net assets at the
time of acquisition, the positive difference is recognized as
goodwill. No goodwill is recognized for positive differences
attributable to non-controlling interests. A negative difference is
recognized in net income.

Foreign Currency Translation
The Company’s transactions denominated in foreign currency are
translated at the current exchange rate at the date of the
transaction. At each balance sheet date monetary foreign currency
items are adjusted to the exchange rate on the reporting date; any
gains and losses resulting from fluctuations in the relevant

Currencies

British pound
Danish krone
Norwegian krone
Polish złoty
Romanian leu
Swedish krona
Czech crown
Turkish lira
Hungarian forint
US dollar

€1, rate at
year-end
2022
0.89
7.44
10.51
4.68
4.95
11.12
24.12
19.96
400.87
1.07

2023
0.87
7.45
11.24
4.34
4.98
11.10
24.72
32.65
382.80
1.11

€1, annual
average rate
2022
0.85
7.44
10.10
4.69
4.93
10.63
24.57
17.41
391.29
1.05

2023
0.87
7.45
11.42
4.54
4.95
11.48
24.00
25.76
381.85
1.08

ISO
Code
GBP
DKK
NOK
PLN
RON
SEK
CZK
TRY
HUF
USD

Countries classified as hyperinflationary are required by IAS 29 to
express their financial statements in the functional currency of the

Recognition of Income

a) Revenues
Revenues in the “Customer Solutions” segment are generated
primarily from the sale of electricity and gas to retail customers,
industrial and commercial customers and wholesale markets as
well as from district heating and cooling. For contracts that do not
provide for defined purchase quantities, the performance
obligation consists in particular in the provision and availability of
energy on demand at any time (standing ready obligation). The
distribution of products and services used to increase energy
efficiency and energy autonomy are also part of the “Customer
Solutions” business. This primarily includes the energy
infrastructure segments (here the performance obligations are
primarily the installation of block-type thermal power stations and
photovoltaic power stations, air-conditioning systems and heat
pumps, wall insulation and window replacement), Future Energy
Home (energy efficiency services, modernization of interior
lighting, transformer maintenance, heating solutions, energy
consulting services) and eMobility (eFleet service, installation and
service of eChargers).

In the Energy Networks business, mainly earnings from the
distribution of electricity and gas are included in revenues. E.ON
makes the electricity and gas distribution network available to its
customers. Significant parts of the fees generated from this
distribution are regulated and are therefore subject to efficiency-
based upper limits on revenue. Since the introduction of IFRS 15
with effect from January 1, 2018, revenues no longer include the

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→ Notes

fees for the promotion of Renewables because these revenues are
netted with the corresponding cost of materials (net disclosure).

Revenues are generally recognized when E.ON fulfills its
performance obligation by transferring a promised good or service
to a customer. An asset is deemed to be transferred when the
customer obtains control of the asset. The majority of the E.ON
Group’s revenues are recognized over time because customers use
these services when they are provided. For all such revenues,
progress is measured using output-based methods, e.g., through
the measurement of services that have already been provided or
units that have been produced or delivered. For construction
contracts, the stage of completion for overtime revenue
recognition can be determined using input-based methods, such as
the cost-to-cost method. The methods used appropriately reflect
the pattern of transfer of goods to customers or provision of
services for customers. The relatively subordinate point-in-time
revenue recognition occurs primarily in the “Build & Sell” area on
the installation of solar panels or charging stations and for so-
called linear products, where a fixed amount of energy is provided
to commercial customers at a specific point in time. Revenue is
recognized when control is transferred to the customer, which
means that no significant discretionary decisions are required.

Revenues from the sale of goods and services are measured using
the transaction prices allocated to these goods and services. They
reflect the value of the volume supplied, including an estimated
value of the volume supplied to customers between the date of the
last invoice and the end of the period. Monthly advance payments
for B2C customers are generally determined on the basis of
historical consumption data, taking into account current
temperature effects. Peak payments are settled at the end of the
settlement period. In B2B, a bottom-up approach is used to
calculate individual rates. Contractually agreed variable
consideration may be allocated to an entire contract or to specific
components of a contract, which is the case with energy supply
agreements with a base fee, for which the variable consideration is
allocated in full to the actual supply of energy, but not to the

fundamental willingness to supply the energy. E.ON’s sales
transactions generally are not based on any material finance
components. The average target payment period is generally
between 10 and 30 days, in exceptional cases longer. Refunds to
customers are an exception and are granted if the customer is
disconnected from the power supply for an extended period of
time. Cash bonuses or bonus payments to customers are
recognized as refund liabilities and presented as a decrease in
revenues uniformly over the term of the contract. As a rule, no
warranties are granted in the Core Business. Warranties are only
granted in the “Build & Sell” activities.

b) Interest Income
Interest income is recognized pro rata using the effective interest
method.

c) Dividend Income
Dividend income is recognized when the right to receive the
distribution payment arises.

Electricity and Energy Taxes
Electricity and energy taxes are levied on electricity and natural
gas delivered to retail customers and are calculated on the basis of
a fixed tax rate per kilowatt-hour (“kWh”). This rate varies between
different classes of customers. Electricity and energy taxes
payable are deducted from sales revenues on the face of the
income statement if those taxes are levied upon delivery of energy
to the retail customer.

Earnings per Share
Basic (undiluted) earnings per share is computed by dividing the
consolidated net income attributable to the shareholders of the
parent company by the weighted-average number of ordinary
shares outstanding during the relevant period. At E.ON, the
computation of diluted earnings per share is identical to that of
basic earnings per share because E.ON SE has issued no potentially
dilutive ordinary shares. The increase in the weighted-average
number of shares outstanding resulted primarily from the issue of

treasury shares in E.ON SE under the voluntary employee stock
purchase program.

Goodwill and Intangible Assets

Goodwill
Goodwill is not amortized, but rather tested for impairment at the
cash-generating unit level on at least an annual basis. The term
cash-generating unit also always includes groups of cash-
generating units and is referred to in simplified form as a cash-
generating unit. Goodwill must also be tested for impairment,
during the year, at the level of individual cash-generating units if
events or changes in circumstances indicate that the recoverable
amount of a particular cash-generating unit might be impaired,
resulting in a shortfall in the carrying amount.

Newly created goodwill is allocated to those cash-generating units
expected to benefit from the respective business combination. The
cash-generating units to which goodwill is allocated are generally
equivalent to the operating segments, since goodwill is reported,
and considered in performance metrics for controlling, only at that
level. If goodwill cannot be allocated arbitrarily to individual cash-
generating units but instead can only be allocated to groups of
cash-generating units, the lowest level within the unit at which the
goodwill is monitored for internal management purposes then
includes several cash-generating units to which the goodwill
relates but to which it cannot be allocated individually. Goodwill
impairment testing is performed in euros, while the underlying
goodwill is always carried in the functional currency.

In a first step, E.ON determines the recoverable amount of a cash-
generating unit on the basis of the fair value (less costs to sell)
using generally accepted valuation procedures. This is based on
the medium-term planning data of the respective cash-generating
unit. Valuation is performed using the discounted cash flow
method unless market transactions or valuations prepared by third
parties for comparable assets which are higher-level in the fair

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→ Notes

value hierarchy according to IFRS 13 are available. If needed, a
calculation of value in use is also performed.

If the carrying amount exceeds the recoverable amount, the
goodwill allocated to that cash-generating unit is adjusted in the
amount of this difference.

E.ON performs the annual testing of goodwill for impairment at
the cash-generating unit level in the fourth quarter on October 1 of
each fiscal year.

Impairment charges on the goodwill of a cash-generating unit and
reported in the income statement under “Depreciation,
amortization and impairment charges” may not be reversed in
subsequent reporting periods.

Intangible Assets
IAS 38, “Intangible Assets” (“IAS 38”), requires that intangible
assets be amortized over their expected useful lives unless their
lives are considered to be indefinite. Factors such as typical
product life cycles and legal or similar limits on use are taken into
account in the classification.

Internally generated intangible assets subject to amortization are
related to software and are recognized as development costs.
Intangible assets subject to amortization are generally amortized
using the straight-line method over their expected useful lives. The
useful lives of customer relationships and similar assets range
between 2 and 50 years, and between 3 and 50 years for
concessions, industrial property rights, licenses and similar rights,
unless depreciation based on consumption reflects an appropriate
level of depletion. This latter category includes software in
particular. Useful lives and amortization methods are subject to
regular verification. Intangible assets subject to amortization are
tested for impairment whenever events or changes in
circumstances indicate that such assets may be impaired.

Intangible assets whose use has not yet started are not amortized.
An impairment test is carried out at least once a year as well as
whenever there are indications of impairment, either for the
individual asset or at the level of the cash-generating unit. The
useful life of an intangible asset with an indefinite life is tested
annually to determine whether the indefinite life assumption
continues to be justified.

Both assets with definite and indefinite useful lives are impaired if
the recoverable amount—the higher of fair value less costs to sell
and value in use—is lower than the carrying amount. If the
reasons for the impairment losses previously recognized under
depreciation, amortization and impairment charges no longer
apply, these assets are written up to a maximum of the value that
would have resulted if no impairment losses had been recognized
during the preceding periods, taking into account scheduled
depreciation.

See Note 15 for additional information about goodwill and
intangible assets.

Research and Development Costs
Under IFRS, expenditure on research is expensed as incurred, while
costs incurred during the development phase of new products,
services and technologies are to be recognized as assets when the
specific criteria for recognition specified in IAS 38 are present. In
the 2022 and 2023 fiscal years, E.ON capitalized costs for
internally generated software and other technologies in this
context.

Property, Plant and Equipment
Property, plant and equipment are initially measured at acquisition
or production cost, including decommissioning or restoration cost
that must be capitalized, and are depreciated over the expected
useful lives of the components, generally using the straight-line
method, unless a different method of depreciation is deemed more
suitable in certain exceptional cases. Useful lives are regularly
tested for appropriateness and the underlying assumptions and

estimates are updated, for example, in view of technical, economic
or legal circumstances.

The useful lives of the most significant asset classes of material
property, plant and equipment are presented below:

Useful Lives of Property, Plant and Equipment
Buildings
Technical equipment, plant and machinery
Other equipment, fixtures, furniture and office equipment

5 to 60 years
2 to 80 years
2 to 30 years

Property, plant and equipment are tested for impairment
whenever events or changes in circumstances indicate that an
asset may be impaired. In such a case, property, plant and
equipment are tested for impairment according to the principles
prescribed for intangible assets in IAS 36. If the reasons for the
impairment losses previously recognized under depreciation,
amortization and impairment charges no longer exist, such
impairment losses are reversed and recognized in income. Such
reversal shall not cause the carrying amount to exceed the amount
that would have resulted had no impairment taken place during
the preceding periods.

Subsequent costs arising, for example, from additional or
replacement capital expenditure are only recognized as part of the
acquisition or production cost of the asset, or else—if relevant—
recognized as a separate asset if it is probable that the Group will
receive a future economic benefit and the cost can be determined
reliably.

Repair and maintenance costs that do not constitute significant
replacement capital expenditure are expensed as incurred.

Borrowing Costs
Borrowing costs that arise in connection with the acquisition,
construction or production of a qualifying asset from the time of
acquisition or from the beginning of construction or production

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until the conclusion of all material work required to prepare the
qualifying asset for its intended use or sale are capitalized and
subsequently amortized alongside the related asset. In the case of
a specific financing arrangement, the respective borrowing costs
incurred for that particular arrangement during the period are
used. For non-specific financing arrangements, a financing rate
uniform within the Group of 2.66 percent was applied for 2023
(2022: 2.59 percent). Other borrowing costs are expensed.

Government Grants
The Group receives grants for assets and grants related to income.

Government investment subsidies do not reduce the acquisition
and production costs of the respective assets; they are instead
reported on the balance sheet as deferred income. They are
recognized in income on a straight-line basis over the associated
asset’s expected useful life.

Grants related to income are also generally recognized as deferred
income on the balance sheet. The liability item is reversed over the
period necessary to match the corresponding income effects that
are intended to compensate for the government grants. Grants are
recognized in the same way as subsidized items.

Government grants are recognized at fair value if the Group
satisfies the necessary conditions for receipt of the grant and if it is
highly probable that the grant will be issued.

Leasing
Lease agreements are accounted for in accordance with IFRS 16,
“Leases” (“IFRS 16”). A lease is an agreement that conveys the
right to use an identified asset for a specified period in exchange
for consideration. In certain cases, agreements that are not
concluded in the form of a rental or lease agreement (e.g., physical
power purchase agreements) are also reviewed to determine
whether they contain a lease in accordance with IFRS 16. E.ON is
party to some agreements in which it is the lessor and to others in
which it is the lessee.

E.ON as Lessee
Transactions in which E.ON acts as a lessee are accounted for on
the basis of the right-of-use model. The recognition exemption of
IFRS 16.5 is used for low-value leases and for agreements with a
lease term of less than 12 months (short-term leases).
Accordingly, there is no recognition of the right-of-use asset and
the lease liability. Instead, the payments are recognized on a
straight-line basis as an expense. In line with internal management
practice, intragroup leases are recognized as current expenses in
the segment reporting.

A lease liability is recognized in the amount of the present value of
the existing payment obligation. Where an arrangement provides
for payments for lease components and non-lease components,
the payments are not separated using the practical expedient
under IFRS 16.15 (with the exception of real estate leases); the
lease liability is measured taking into account the total amount of
the payments. Present value is determined by discounting with an
incremental borrowing rate that is equivalent in terms of risk and
term if the implicit interest rate cannot be determined. The liability
is subsequently measured using the effective interest method. A
right-of-use asset corresponding with the lease liability is
recognized in the amount of the present value of the lease
payments. The initial recognition amount of the right-of-use asset
is increased by the amount of the initial direct costs, as well as
expected costs for asset retirement obligations; prepayments
made are included and lease incentives received are deducted from
the initial recognition amount. A right-of-use asset is subsequently
measured at amortized cost. Depreciation is carried out on a
straight-line basis over the shorter of the lease term or the useful
life of the identified asset. An impairment test is carried out in
accordance with IAS 36 if events or changed circumstances
indicate an impairment.

E.ON ensures its operational flexibility when concluding leasing
agreements through the use of extension and termination options.
In determining the lease term, E.ON considers all facts and
circumstances that provide an economic incentive to exercise

existing options. The lease term therefore also includes periods
covered by extension options if it is assumed with reasonable
certainty that they will be exercised.

E.ON as Lessor
Lease transactions in which E.ON acts as lessor are classified as
operating or finance leases depending on the distribution of risks
and rewards. If a lease is classified as an operating lease, E.ON
recognizes the identified asset and recognizes the lease payments
as other operating income on a straight-line basis over the lease
term. For finance leases, the identified asset is derecognized and a
receivable is recognized in the amount of the net investment value.
Payments made by the lessee are treated as a reduction of the
lease receivable or interest income. The income from such
arrangements is recognized over the term of the lease using the
effective interest method. Subleases are classified based on the
right-of-use asset under the head lease.

Financial Instruments

Non-Derivative Financial Instruments
Non-derivative financial instruments are measured in accordance
with IFRS 9, “Financial Instruments” (“IFRS 9”). They are
recognized at fair value, including transaction costs, on the
settlement date when acquired, provided they are not recognized
at fair value through profit and loss.

Financial assets are classified as financial assets measured at
amortized cost (AmC), financial assets measured at fair value
through other comprehensive income (FVOCI) and financial assets
measured at fair value through profit and loss (FVPL) based on the
business model and the characteristics of the cash flows.

If a financial asset is held for the purpose of collecting contractual
cash flows and the cash flows of the financial asset represent
exclusively interest and principal payments, then the financial
asset is measured at amortized cost (AmC).

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A financial asset is measured at fair value through other
comprehensive income (FVOCI) if it is used both to collect
contractual cash flows and for sales purposes and the cash flows
of the financial asset consist exclusively of interest and principal
payments.

Unrealized gains and losses from financial assets measured at fair
value through other comprehensive income (FVOCI), net of related
deferred taxes, are reported as a component of equity (other
comprehensive income) until realized. Realized gains and losses
are determined by analyzing each transaction individually.

Debt instruments that do not exclusively serve to collect
contractual cash flows or to both generate contractual cash flows
and sales revenue, or whose cash flows do not exclusively consist
of interest and principal payments are measured at fair value
through profit and loss (FVPL). For equity instruments that are not
held for trading purposes, E.ON does not exercise the FVOCI
option.

Impairments of financial assets are both recognized for losses
already incurred and for expected future credit defaults. The
amount of the impairment loss calculated in the determination of
expected credit losses is recognized on the income statement.

The expected future credit loss is calculated by multiplying the
probability of default by the carrying amount of the financial asset
(exposure at default) and the expected loss ratio (loss given
default). For information on the treatment of impairments under
IFRS 9, please see Note 32.

Non-derivative financial liabilities (including trade payables) within
the scope of IFRS 9 are measured at amortized cost, using the
effective interest method. Initial measurement takes place at fair
value, with transaction costs included in the measurement. In the
subsequent measurement, the residual carrying amount is
adjusted by the amortization and accretion of any premium or

discount remaining until maturity. The premium or discount is
recognized in financial results over its term.

Derivative Financial Instruments and Hedging
Derivative financial instruments and separated embedded
derivatives are measured at fair value as of the trading date at
initial recognition. Under IFRS 9, they are classified as at fair value
through profit and loss (FVPL) as long as they are not a component
of a hedge accounting relationship. Gains and losses from changes
in fair value are immediately recognized in net income.

arises only if the measurement parameters of the hedged item and
the hedging instrument differ from one another or in the case of
subsequent designation of the hedging instrument. All
components of derivative gains and losses from the measurement
of hedge ineffectiveness are taken into consideration during
recognition.

For qualifying fair value hedges, the change in the fair value of the
derivative and the change in the fair value of the hedged item that
is due to the hedged risk(s) are recognized in income.

The instruments primarily used are foreign currency forwards and
cross-currency interest rate swaps, as well as interest rate swaps.
In commodities, the instruments used primarily include physically
and financially settled forwards and options related to electricity
and gas.

As part of fair value measurement in accordance with IFRS 13, the
counterparty risk is also taken into account for derivative financial
instruments. E.ON determines this risk based on a portfolio
valuation in a bilateral approach for both own credit risk (debt
value adjustment) and the credit risk of the corresponding
counterparty (credit value adjustment). The counterparty risks
thus determined are allocated to the individual financial
instruments by applying the relative fair value method on a net
basis.

E.ON has designated some of these derivatives as part of a
hedging relationship. IFRS 9 sets requirements for the
admissibility of hedging instruments and the underlyings, the
formal designation and documentation of hedging relationships,
the hedging strategy, as well as fulfilling requirements of
effectiveness in order to qualify for hedge accounting. The
designated hedged items and hedging instruments are subject to
the same risk. This economic relationship ensures that the
amounts of the hedged items and hedging instruments are offset
against each other and that the hedging relationships are therefore
effective. The hedge ratio of the hedges is 1:1. Ineffectiveness

If a derivative instrument qualifies as a cash flow hedge under IFRS
9, the effective portion of the hedging instrument’s change in fair
value is recognized in equity (as a component of other
comprehensive income) and reclassified into income in the period
or periods during which the cash flows of the transaction being
hedged affect income. In accordance with IFRS 9, the currency
basis spread (hedging costs) will be separated from the hedging
instrument and reported separately as an excluded component in
accumulated other comprehensive income in the reserve for
hedging costs as a component of equity.

The hedging result is reclassified into income during the period in
which the cash flows of the hedged asset are recognized in
income. The result is recognized immediately in income if it
becomes probable that the hedged underlying transaction will no
longer occur. For hedging instruments used to establish cash flow
hedges, the change in fair value of the ineffective portion is
recognized immediately in the income statement to the extent
required.

To hedge the foreign currency risk arising from the Company’s net
investment in foreign operations, derivative as well as non-
derivative financial instruments are used. Gains or losses due to
changes in fair value and from foreign currency translation are
recognized within equity, as a component of other comprehensive
income, under currency translation adjustments.

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E.ON currently uses hedges in the framework of cash flow hedges
and hedges of a net investment.

delivery. This “safety buffer” is reviewed on a regular basis and
adjusted if necessary.

intention to settle offsetting positions simultaneously and/or on a
net basis.

Changes in fair value of derivative instruments that are recognized
in income are presented as other operating income or expenses.
Gains and losses from interest-rate derivatives are included in
interest income.

Unrealized gains and losses resulting from the initial measurement
of derivative financial instruments at the inception of the contract
are not recognized in income. They are instead deferred and
recognized in income systematically over the term of the
derivative. An exception to the accrual principle applies if
unrealized gains and losses from the initial measurement are
verified by quoted market prices, observable prices of other
current market transactions or other observable data supporting
the valuation technique. In this case the gains and losses are
recognized in income.

E.ON holds portfolios of sales and procurement contracts for
electricity and gas supplies with various customer and supplier
groups (commodity futures). Contracts (in particular sales and
procurement contracts for electricity and gas) that are entered into
for purposes of receiving or delivering non-financial items in
accordance with E.ON’s anticipated procurement, sale or use
requirements, and held as such, are generally classified as own-
use contracts.

They are not accounted for as derivative financial instruments at
fair value through profit and loss (FVPL) in accordance with IFRS 9,
but as pending transactions subject to the rules of IAS 37.
Contracts that provide for net settlement and resales of the
quantities to be delivered at a future date generally cannot, as a
rule, be classified as own-use contracts. Based on forward-looking
forecasts of delivery quantities specified by customer structure
and portfolio management, contracts with physical settlement
upon conclusion are recognized as derivatives for which
settlement cannot be ensured within the scope of ordinary

Embedded derivatives in own-use contracts must be separated
from the host contract and accounted for as derivatives in
accordance with IFRS 9 if the economic characteristics and risks of
these derivatives are not closely related to those of the host
contract. The contract is assessed upon conclusion to determine
whether a derivative is required to be separated. A reassessment
must be carried out if there is a significant change in the terms of
the contract or in the context of business combinations.

Agreements to buy or sell non-financial items that are not
classified as own-use contracts under IFRS 9 and that are required
to be accounted for as derivatives must be recognized in the
balance sheet at their fair value until they are realized. At the time
of physical settlement of such energy delivery contracts, the
electricity or gas volumes delivered are measured at the market
price prevailing at the time of physical fulfillment and the
difference between the contracted price and the market price is
recognized in other operating income. In addition, any income from
commodity derivatives arising from the difference between the
contract price and the market price is recognized in other operating
income. In exceptional cases, commodity derivatives are
designated as hedging instruments of a cash flow hedge in
accordance with IFRS 9, and the effective part of the value change
is recognized in equity as a component of other comprehensive
income.

IFRS 7, “Financial Instruments: Disclosures” (“IFRS 7”), and IFRS
13 both require comprehensive quantitative and qualitative
disclosures about the extent of risks arising from financial
instruments. Additional information on financial instruments is
provided in Notes 31 and 32.

Non-derivative and derivative financial instruments are netted on
the balance sheet if under IAS 32 E.ON has both an unconditional
right—even in the event of the counterparty’s insolvency—and the

Inventories
Inventories are measured at the lower of acquisition or production
cost and net realizable value. The cost of raw materials, finished
products and goods purchased for resale is determined based on
the average cost method. In addition to production materials and
wages, production costs include material and production
overheads based on normal capacity. The costs of general
administration are not capitalized. Inventory risks resulting from
excess and obsolescence are provided for using appropriate
valuation allowances, whereby inventories are written down to net
realizable value.

Emission Rights and Similar Certificates
Emission rights and similar certificates held under national and
international emissions trading systems for the settlement of
obligations are capitalized at cost at the date of acquisition and
reported under current assets. Subsequent measurement is at
amortized cost under IAS 38.

The obligation to submit emission rights and similar certificates to
the relevant authorities is recognized as a liability as of the balance
sheet date. Measurement is based on the best estimate of the
future settlement amount.

Receivables, Contract Assets or Liabilities and Other Assets
A receivable is recognized under IFRS 15 when the goods or
services are delivered, provided that the right to consideration is
unconditional, i.e., is only related to the passage of time. However,
if the right to receive the consideration is contingent upon
conditions other than the passage of time, a contract asset is
recognized. A contract liability under IFRS 15 is recognized when
consideration has been received for an existing IFRS 15 contract
and the right to receive the goods or services still exists in full or in
part. The contractual liability is only reversed with an effect on
revenue when E.ON has performed the corresponding service. An

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asset is recognized under other assets under IFRS 15 if the cost of
obtaining the contract is expected to be recovered and the
amortization period is longer than one year. Other assets are
amortized over the estimated term of the contract depending on
how the goods or services to which the costs relate are transferred
to the customer. If the estimated term of the contract is less than
one year, the costs are immediately recognized as an expense on
the income statement. Trade receivables without a significant
financial component are measured upon initial recognition at their
transaction price. Valuation allowances, included in the reported
net carrying amount, are provided for identifiable individual risks. If
the loss of a certain part of the receivables is probable, valuation
allowances are provided to cover the expected loss. Impairments
are also recognized for expected future credit losses.

Liquid Funds
Liquid funds include checks, cash on hand, bank balances and
current securities.

Liquid funds with an original maturity of more than three months
are recognized under securities and fixed-term deposits provided
that their maturities are not more than 12 months and therefore
are recognized under non-current financial receivables and other
financial assets.

Liquid funds with an original maturity of less than three months
are considered to be cash and cash equivalents in accordance with
IAS 7. This also applies if they are merely contractually restricted,
in which case the funds can technically be disposed of at any time
at E.ON’s discretion. However, if, as a result of a restriction, liquid
funds cannot technically be disposed of at any time at E.ON’s
discretion, they are reported separately as restricted liquid funds.

Assets Held for Sale and Liabilities Associated with Assets
Held for Sale and Discontinued Operations
Non-current assets and any corresponding liabilities held for sale
and any directly attributable liabilities are recognized separately
from other assets and liabilities in the balance sheet in the line

items “Assets held for sale” and “Liabilities associated with assets
held for sale” if they can be disposed of in their current condition
and if there is sufficient probability of their disposal actually taking
place. The reclassification to the separate balance sheet items is
shown in the fixed asset movement schedule under Changes in
scope of consolidation.

Discontinued operations are components of an entity that are
either held for sale or have already been sold and can be clearly
distinguished from other corporate operations, both operationally
and for financial reporting purposes. Additionally, the component
of the entity classified as a discontinued operation must represent
a major business line or a specific material geographic business
segment of the Group or a subsidiary acquired exclusively for
resale.

Non-current assets that are held for sale either individually or
collectively as part of a disposal group, or that belong to a
discontinued operation, are no longer depreciated. They are
instead accounted for at the lower of the carrying amount and the
fair value less any remaining costs to sell. If this value is less than
the carrying amount, an impairment loss is recognized in other
operating expenses.

The income and losses resulting from the measurement of
components held for sale as well as the gains and losses arising
from the disposal of discontinued operations, are reported
separately on the face of the income statement under income/loss
from discontinued operations, net, as is the income from the
ordinary operating activities of these divisions. Prior-year income
statement figures are adjusted accordingly. The relevant assets
and liabilities are reported in a separate line on the balance sheet.
The cash flows of discontinued operations are reported separately
in the cash flow statement, with prior-year figures adjusted
accordingly. However, there is no reclassification of prior-year
balance sheet line items attributable to discontinued operations.

Equity Instruments
E.ON has entered into purchase commitments to holders of non-
controlling interests in subsidiaries. By means of these
agreements, the non-controlling shareholders have the right to
require E.ON to purchase their shares on specified conditions.
None of the contractual obligations has led to the transfer of
substantially all of the risk and rewards to E.ON at the time of
entering into the contract. Under the anticipated acquisition
method, however, the right of tender is accounted for as if it had
already been exercised. Accordingly, the minority interests are
derecognized—irrespective of the probability of the option being
exercised—and at the same time a liability is recognized in the
amount of the present value of the repurchase amount in
accordance with IAS 32, “Financial Instruments: Presentation”
(“IAS 32”). The difference between this measurement and the
carrying amount of the minority shareholders’ equity to be
derecognized is recognized in equity of E.ON SE shareholders. The
accretion of the liability is recognized as interest expense. If a
purchase commitment expires unexercised, the liability reverts to
non-controlling interests. Any remaining difference is then
recognized directly in equity in retained earnings.

Where shareholders of entities own statutory, non-excludable
rights of termination (as in the case of German partnerships, for
example), such termination rights require the reclassification of
non-controlling interests from equity into liabilities under IAS 32.
The liability is recognized at the present value of the expected
settlement amount irrespective of the probability of termination.
Changes in the value of the liability are reported within other
operating income. Accretion of the share of the results of the non-
controlling shareholders’ share in net income is recognized in Net
interest income/expense. In the event that non-controlling
shareholders are entitled to a guaranteed dividend, this
entitlement is recognized as a liability through reclassification from
non-controlling interests in equity.

If E.ON SE or a Group company buys treasury shares of E.ON SE,
the value of the consideration paid, including directly attributable

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additional costs (net after income taxes), is deducted from E.ON
SE’s equity until the shares are retired, distributed or resold. If such
treasury shares are subsequently distributed or sold, the
consideration received, net of acquisition costs, any directly
attributable additional transaction costs and associated income
taxes, is recognized in additional paid-in capital.

obligations and pension entitlements that are known on the
reporting date and economic trend assumptions such as
assumptions on wage and salary growth rates and pension
increase rates, among others, that are made in order to reflect
realistic expectations, as well as variables specific to reporting
dates such as discount rates, for example.

Payments for defined contribution pension plans are expensed as
incurred and reported under personnel costs. Contributions to
state pension plans are treated like payments for defined
contribution pension plans to the extent that the obligations under
these pension plans generally correspond to those under defined
contribution pension plans.

Share-Based Payment
Share-based payment plans issued in the E.ON Group are
accounted for in accordance with IFRS 2, “Share-Based Payment”
(“IFRS 2”).

In fiscal years 2017 to 2023, virtual shares were granted to
members of the Management Board of E.ON SE and certain E.ON
Group executives under the new E.ON Performance Plan. See the
Compensation Report for more details on the structure of the plan.

The E.ON Performance Plan represents commitments of the
Company which provide for cash compensation based on the share
price performance at the end of the term. The compensation
expense is measured taking into account the fair value of the
virtual shares granted and recognized in personnel expense pro
rata over the vesting period.

In 2023, as in 2022, employees of E.ON SE and participating
subsidiaries once again had the opportunity to purchase E.ON
shares at favorable conditions under the employee stock purchase
program. The program includes a share-based payment settled in
equity instruments (shares of E.ON SE) as consideration for
services rendered or work performed. The corresponding
compensation under IFRS 2 was recognized in personnel expense
and the offsetting entry was made in equity.

Provisions for Pensions and Similar Obligations
Measurement of defined benefit obligations in accordance with
IAS 19, “Employee Benefits,” is based on actuarial computations
using the projected unit credit method, with actuarial valuations
performed at year-end. The valuation encompasses both pension

Included in gains and losses from the remeasurements of the net
defined benefit liability or asset are actuarial gains and losses that
may arise especially from differences between estimated and
actual variations in underlying assumptions about demographic
and financial variables. Additionally included is the difference
between the actual return on plan assets and the expected interest
income on plan assets included in the net interest result.
Remeasurement effects are recognized in full in the period in
which they occur and are not reported within the Consolidated
Statements of Income, but are instead recognized within the
Statements of Recognized Income and Expenses as part of equity.

The employer service cost representing the additional benefits that
employees earned under the benefit plan during the fiscal year is
reported under personnel costs; the net interest on the net liability
or asset from defined benefit pension plans determined based on
the discount rate applicable at the start of the fiscal year is
reported under financial results.

Past service cost, as well as gains and losses from settlements, are
fully recognized in the income statement in the period in which the
underlying plan amendment, curtailment or settlement takes
place. They are reported under personnel costs.

Provisions for Asset Retirement Obligations and Other
Miscellaneous Provisions
In accordance with IAS 37, “Provisions, Contingent Liabilities and
Contingent Assets” (“IAS 37”), provisions are recognized when
E.ON has a legal or constructive present obligation towards third
parties as a result of a past event, it is probable that E.ON will be
required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation. The provision is recognized
at the expected settlement amount. Long-term obligations are
reported as liabilities at the present value of their expected
settlement amounts if the interest rate effect (the difference
between present value and repayment amount) resulting from
discounting is material; future cost increases that are foreseeable
and likely to occur on the balance sheet date at year-end must also
be included in the measurement. Long-term obligations are
generally discounted at the market interest rate applicable as of
the respective balance sheet date, provided that it is not negative.
The accretion amounts and the effects of changes in interest rates
are generally presented as part of financial results. A
reimbursement related to the provision that is virtually certain to
be collected is capitalized as a separate asset. No offsetting within
provisions is permitted. Advance payments remitted are deducted
from the provisions.

The amount reported on the balance sheet represents the present
value of the defined benefit obligations reduced by the fair value of
plan assets. If a net asset position arises from this calculation, the
amount is limited to the present value of available refunds and the
reduction in future contributions and to the benefit from
prepayments of minimum funding requirements. Such an asset
position is recognized as an operating receivable.

Obligations arising from the decommissioning or dismantling of
property, plant and equipment are recognized during the period of
their occurrence at their discounted settlement amounts, provided
that the obligation can be reliably estimated, whereby no negative
discount rates are applied. The carrying amounts of the respective
property, plant and equipment are increased by the same amounts.
In subsequent periods, capitalized asset retirement costs are

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amortized over the expected remaining useful lives of the assets,
and the provision is accreted to its present value on an annual
basis. Advance payments remitted are deducted from the
provisions.

Changes in estimates arise in particular from deviations from
original cost estimates, from changes to the maturity or the scope
of the relevant obligation, and also as a result of the regular
adjustment of the discount rate to current market interest rates.
The adjustment of provisions for the decommissioning and
restoration of property, plant and equipment for changes to
estimates is generally recognized by way of a corresponding
adjustment to these assets, with no effect on income. As the
property, plant and equipment concerned have, however,
frequently already been fully depreciated, changes to estimates
are primarily recognized within the income statement.

The estimates for nuclear decommissioning provisions are derived
from studies, cost estimates, legally binding civil agreements and
legal information. A material element in the estimates are the real
interest rates applied (the applied discount rate, less the cost
increase rate).

If onerous contracts exist in which the unavoidable costs of
meeting a contractual obligation exceed the economic benefits
expected to be received under the contract, provisions are
established for losses from pending transactions. Such provisions
are recognized at the lower of the excess obligation upon
performance under the contract and any potential penalties or
compensation arising in the event of non-performance. Obligations
under an open contractual relationship are determined from a
sales market perspective, in part on the basis of contract
portfolios.

Provisions for pending sales transactions must also be recognized
if these transactions are subject to the own-use exemption under
IFRS 9 and if they are partially offset by transactions that are
accounted for as derivative financial instruments measured at

current market prices. As a result, provisions under IAS 37 are
recognized for transactions actually subject to the own-use
exemption, for the purpose of which the intrinsic values of the
derivatives accounted for under IFRS 9 held in the procurement
portfolio are taken into consideration in the calculation of the
imputed performance costs. The book structure adopted under
IFRS 9 therefore affects the accounting treatment of the
corresponding provisions.

Contingent liabilities are possible obligations toward third parties
arising from past events that are not wholly within the control of
the entity, or else present obligations toward third parties arising
from past events in which an outflow of resources embodying
economic benefits is not probable or where the amount of the
obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognized on the balance sheet.

A full disclosure of information is not provided for certain
contingent liabilities, contingent receivables and provisions in
connection with pending litigation if such disclosure could have a
significant influence on further proceedings.

Provisions for restructuring costs are recognized at the present
value of the future outflows of resources. Provisions are
recognized once a detailed restructuring plan has been decided on
by management and whose implementation has either already
begun or which have been publicly announced or communicated to
the employees or their representatives. Only those expenses that
are directly attributable to the restructuring measures are used in
measuring the amount of the provision. Expenses associated with
the future operation are not taken into consideration.

Income Taxes
Under IAS 12, “Income Taxes” (“IAS 12”), deferred taxes are
recognized on temporary differences arising between the carrying
amounts of assets and liabilities on the balance sheet and their tax
bases (balance sheet liability method). Deferred taxes are
recognized for temporary differences that will result in taxable or

deductible amounts when taxable income is calculated for future
periods, unless those differences are the result of the initial
recognition of an asset or liability in a transaction other than a
business combination that, at the time of the transaction, affects
neither accounting nor taxable profit/loss and does not generate
any temporary differences in the same amount that are subject to
tax or to deduction (initial differences). Uncertain tax positions are
recognized at their most likely value or the expected value. IAS 12
further requires that deferred tax assets be recognized for unused
tax loss carryforwards and unused tax credits. Deferred tax assets
are recognized to the extent that it is probable that taxable profit
will be available against which the deductible temporary
differences and unused tax losses can be utilized. Each of the
corporate entities is assessed individually with regard to the
probability of a positive tax result in future years. The planning
horizon is basically three to five years in this context. Any existing
history of losses is incorporated in this assessment. For those tax
assets to which these assumptions do not apply, the value of the
deferred tax assets is reduced. Deferred taxes in connection with
the global minimum tax (“Pillar II”) are not recognized.

Deferred tax liabilities caused by temporary differences associated
with investments in affiliated and associated companies are
recognized unless the timing of the reversal of such temporary
differences can be controlled within the Group and it is probable
that, owing to this control, the differences will in fact not be
reversed in the foreseeable future.

Deferred tax assets and liabilities are measured using the enacted
or substantively enacted tax rates expected to be applicable for
taxable income in the years in which temporary differences are
expected to be recovered or settled. The effect on deferred tax
assets and liabilities of changes in tax rates and tax law is
recognized in net income unless the change affects deferred taxes
that had previously been recognized directly in equity. The change
is generally recognized in the period in which the material
legislative process is completed. Income taxes for transaction
costs of an equity transaction are recognized directly in equity.

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Income tax items are regularly assessed, in particular against the
backdrop of numerous changes in tax laws, tax regulations, legal
decisions and ongoing tax audits. E.ON is responding to this
circumstance, in particular through the application of IFRIC 23, by
continuously identifying and assessing the tax environment and
the resulting effects. The most current information is then
incorporated into the estimate parameters necessary for
measuring the tax provisions. Accordingly, related potential
interest rate effects are also assessed, measured and reported
separately.

Consolidated Statement of Cash Flows
In accordance with IAS 7, “Statement of Cash Flows,” the
Consolidated Statement of Cash Flows are classified in cash flows
from operating, investing and financing activities.

Segment Information
In accordance with the so-called management approach required
by IFRS 8, “Operating Segments,” the internal reporting
organization used by management for making decisions on
operating matters is used to identify the Company’s reportable
segments. The internal performance measure used as the segment
result is EBITDA adjusted to exclude certain non-operating effects
(see Note 35). Transactions between the reportable segments are
recorded at arm’s length transfer prices.

Structure of the Consolidated Balance Sheets and
Statement of Income
In accordance with IAS 1, “Presentation of Financial Statements,”
the Consolidated Balance Sheets have been prepared using a
classified balance sheet structure. Assets that will be realized
within 12 months of the reporting date, as well as liabilities that
are due to be settled within one year of the reporting date are
generally classified as current.

The Consolidated Statement of Income is classified using the
nature of expense method, which is also applied for internal
purposes.

Critical Accounting Estimates and Assumptions; Critical
Judgments in the Application of Accounting Policies
The preparation of the Consolidated Financial Statements requires
management to make estimates and assumptions that may both
influence the application of accounting principles within the Group
and affect the measurement and presentation of reported figures.
Estimates are based on past experience and on current knowledge
obtained on the transactions to be reported. Actual amounts may
differ from these estimates.

The estimates and underlying assumptions are reviewed on an
ongoing basis and are adjusted as necessary in the periods in
which they were recognized.

Estimates are particularly necessary for the measurement of the
value of property, plant and equipment and of intangible assets,
specifically in connection with purchase price allocations and
determining the useful life, the recognition and measurement of
deferred tax assets, the accounting treatment of provisions for
pensions and other provisions (in particular provisions for the
decommissioning of nuclear power plants and provisions for
contingent losses from pending transactions involving the sale of
electricity and gas), for impairment testing in accordance with IAS
36, as well as the determination of the fair value of certain
financial instruments, as well as for the application of IFRS 15, and
here in particular for the estimation of the value of electricity and
gas units supplied, including the estimated values for units
between the last settlement and the end of the period. Estimates
are also factored in when applying IFRS 16, namely in connection
with the determination of lease terms and the calculation of the
discount rate, and in part when applying IFRS 9 in connection with
the determination of expected future credit losses.

The application of accounting policies requires judgments to be
made that may affect the amounts recognized in the financial
statements. Judgments are relevant, for example, when assessing
whether an item is to be classified in accordance with IFRS 5. Here,
management assesses whether a disposal is considered highly

probable. Further judgments may be necessary in assessing
whether E.ON controls, jointly controls with other investors, or can
significantly influence an entity.

Specifically, management assesses here what the significant
activities of the Company are, i.e., which activities have a material
impact on the returns of the investee. The list of shareholdings
(see Note 38) provides information on the form of inclusion in the
consolidated financial statements of certain investees whose share
of voting rights indicates a different form of inclusion.

The underlying principles used for estimates and judgments in the
named topics and in additional relevant topics are outlined in the
respective sections.

Critical judgment is required in the recognition of risks arising from
claims asserted by customers for the restitution of amounts
collected through price adjustment measures (provisions in
connection with price adjustments). Judgment is also required
when assessing the potential recognition of assets or liabilities and
their classification as contingent assets or liabilities (see Note 29).

In addition, estimates and judgments continue to be subject to
increased uncertainty, in particular due to the significant volume
and price volatilities on the energy markets and due to the war in
Ukraine. The actual amounts may differ from the estimates and
judgments made; changes may have a material impact on E.ON’s
net assets, financial position and results of operations. When the
estimates and judgments were updated, all available information
on expected economic developments and country-specific
government measures was taken into account on the reporting
date. It is difficult to predict the duration and the extent of the
impact on assets, liabilities, earnings and cash flows of the war in
Ukraine. More information on the impact of the war in Ukraine on
the E.ON Group is presented in Note 3.

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(2) New Standards, Interpretations and Amendments

Standards, Interpretations and Amendments
Applicable for the First Time in 2023

The EU has transposed these amendments into European law. The
amendments will be applied for fiscal years beginning on or after
January 1, 2023. The amendments have no material impact on
E.ON’s Consolidated Financial Statements.

IASB and IFRS IC Pronouncements
IFRS 17 “Insurance Contracts” including Amendments to IFRS 17

Explanation
The new IFRS 17 standard governs the accounting for insurance
contracts and supersedes IFRS 4.

To be applied by E.ON
from
01/01/2023

Expected impact on the presentation of E.ON's net assets,
financial position and results of operations
No material impact.

Amendment to IFRS 17—Initial Application of IFRS 17 and IFRS 9—
Comparative Information

The amendment concerns the transitional provisions for the initial joint
application of IFRS 17 and IFRS 9.

Amendments to IAS 1 and IFRS Practice Statement 2—Disclosure of
Accounting Policies

Amendments to IAS 8—Definition of Accounting Estimates

Amendments to IAS 12—Deferred Tax Related to Assets and Liabilities
arising from a Single Transaction

Amendments to IAS 12—International Tax Reform—Pillar 2—Model
Rules

Clarification that an entity must disclose all material (formerly
“significant”) accounting policies. The main characteristic of these items
is that, together with other information included in the financial
statements, they can influence the decisions of primary users of the
financial statements.

Clarification with regard to the distinction between changes in
accounting policies (retrospective application) and changes in
accounting estimates (prospective application).

Clarification that the initial recognition exemption of IAS 12 does not
apply to leases and decommissioning obligations. Deferred tax is
recognized on the initial recognition of assets and liabilities arising from
such transactions.

The amendment contains a temporary, mandatory exception to the
recognition of deferred taxes resulting from the implementation of the
Pillar 2 model rules of the OECD. In addition, in periods in which
legislation implementing the Pillar 2 model rules has been passed but
has not yet entered into force, the amendment requires the disclosure
of information that is known or that can be reliably estimated
(quantitative or qualitative) so that users of financial statements can
assess the impact of the Pillar 2 regulations or the income taxes that
result from it.

01/01/2023

No impact.

No material impact.

01/01/2023

No material impact.

01/01/2023

No impact.

01/01/2023

No material impact (see Note 11).

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Standards, Interpretations and Amendments Issued But
Not Yet Applicable
The IASB and the IFRS IC have issued the following additional
standards and interpretations. E.ON does not apply these rules
because their application is not yet mandatory. Currently these
amendments are not expected to have a material impact on E.ON’s
Consolidated Financial Statements:

IASB and IFRS IC Pronouncements
Amendments to IFRS 16—Lease Liability in a Sale and
Leaseback

Amendments to IAS 1—Classification of Liabilities as
Current or Non-Current
Amendments to IAS 1—Classification of Liabilities as
Current or Non-Current—Deferral of Effective Date
Amendments to IAS 1 —Non-Current Liabilities with
Covenants
Amendments to IAS 7 and IFRS 7—Supplier Finance
Arrangements

Amendments to IAS 21—Clarify the accounting when there
is a lack of exchangeability

Explanation
Clarification that when the seller/lessee is to subsequently
measure the lease in such a way that the (changed) lease payments
are not recorded as a profit or loss for the retained right-of-use
asset.
Clarification that the classification of liabilities as current or non-
current is based on the existing rights of the entity at the reporting
date.
Clarification of how conditions with which an entity must comply
within 12 months after the reporting period affect the classification
of a liability.
Addition of supplemental disclosure requirements for companies to
provide qualitative and quantitative information about financial
agreements with suppliers.
Clarifying when a currency is exchangeable and how to determine
the exchange rate when it is not.

Yes

* If not yet endorsed by the EU the date of first-time adoption scheduled by the IASB is assumed to apply.

Transposed
into EU law
Yes

To be applied by
E.ON from
01/01/2024

Expected impact on the presentation of E.ON's net
assets, financial position and results of operations
No material impact.

01/01/2024

No material impact.

01/01/2024*

No impact.

01/01/2025*

No impact.

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(3) Impact of the War in Ukraine and the Development
of the Commodity Markets

On February 24, 2022, Russia launched a military attack on
Ukraine. This invasion is having far-reaching economic
consequences, and direct impacts—particularly in the energy
sector—are being experienced, which are also explained further in
the “Macroeconomic and Industry Environment” section of the
Management Report.

The consequences of the war in Ukraine continue to have an
impact on E.ON’s business, primarily due to volatile commodity
prices. Following the sharp rise in commodity prices seen in the
previous year, they fell over the course of the reporting year but
remained at a significantly higher level. This resulted in a declining
market valuation of sales and procurement transactions
recognized as derivatives in the balance sheet, as well as declines
in these partially offsetting provisions for onerous contracts. The
impacts are explained in more detail in the sections “Earnings
Situation,” “Financial Situation” and “Asset Situation” of the
Management Report.

The situation assessable at the balance-sheet date with regard to
the war in Ukraine indicated no triggering events that would
necessitate impairment charges on non-current assets under IAS
36, in particular goodwill, other intangible assets, and property,
plant and equipment.

In fiscal year 2023, high energy prices due to the war in Ukraine
affected the ability of customers to pay significantly increased
energy bills and led to additional impairment losses on trade
receivables (see also the comments in Note 18).

Potential balance sheet effects of the future development of the
war in Ukraine are being analyzed on an ongoing basis.

The Europe-wide energy crisis has prompted the governments of
some countries in which E.ON operates to adopt various measures

to soften the impact on the end consumer. Some of these
measures may directly impact E.ON, such as the introduction of
price caps or the elimination of excess earnings. In particular, the
price caps could have a direct impact on E.ON’s revenues under
IFRS 15. However, these charges did not have a material effect on
E.ON’s earnings in the 2023 financial year. For example, negative
effects from price caps were primarily offset by government
grants, which were in part recognized as grants related to income
in accordance with IAS 20 (see the comments in Notes 6 and 9).
There are also government measures that do not directly affect
E.ON, such as the temporary assumption of energy costs for the
end consumer.

(4) Scope of Consolidation

The number of consolidated companies changed as follows in
2023:

Scope of Consolidation

Consolidated companies
as of January 1, 2022
Additions
Disposals/Mergers
Consolidated companies
as of December 31, 2022
Additions
Disposals/Mergers
Consolidated companies
as of December 31, 2023

Domestic

Foreign

Total

166
4
4

166
5
7

164

156
3
16

143
4
18

129

322
7
20

309
9
25

293

In 2023, a total of 53 domestic and 10 foreign associated
companies were consolidated under the equity method (2022: 54
domestic companies and 10 foreign companies). One domestic
company reported as joint operations was presented pro rata on
the Consolidated Financial Statements (2022: one domestic
company).

(5) Material Acquisitions, Disposals and Disposal
Groups in 2023

Consortium Agreement with RheinEnergie

On June 29, 2021, Westenergie AG, a fully consolidated
subsidiary of the E.ON Group, entered into a consortium
agreement with RheinEnergie AG. The agreement was finalized
effective March 31, 2023, after the conditions imposed by the
Bundeskartellamt (German Federal Cartel Office) were met. With
the closing of the transaction, Westenergie and RheinEnergie
merged shareholdings in individual municipal utilities into rhenag
Rheinische Energie Aktiengesellschaft (“rhenag”). It also resulted in
the initial consolidation of AggerEnergie GmbH within the E.ON
Group. Westenergie also transferred 20 percent of the shares of
Stadtwerke Duisburg, which, pursuant to IFRS 5, was previously
included in E.ON’s Consolidated Financial Statements as an
associated company, to RheinEnergie, which increased its share in
RheinEnergie from 20 to 24.2 percent.

The acquisition cost of a business combination is generally
determined based on the fair values of the assets transferred as
consideration, the liabilities assumed and the equity interests
issued by the acquirer at the acquisition date. Because the shares
in AggerEnergie were acquired in the course of a complex swap
transaction, in accordance with IFRS 3.33, no determination was
carried out at the acquisition date of the rhenag shares transferred
in the framework of the overall swap transaction. Instead, the
shares in AggerEnergie acquired were measured as of the
acquisition date of March 31, 2023. The acquisition cost of the
62.7 percent shareholding determined on this basis amounts to
€137 million. Accordingly, there is no need to allocate the
consideration to major classes of consideration in accordance with
IFRS 3.B64(f). The non-cash swap and the different value
transfers to rhenag reduce the shareholding in rhenag from 66.67
percent to 45.56 percent. Contingent consideration and
compensatory assets were not included in the agreement.

155

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The provisional calculations of the fair values of the identifiable
assets acquired, liabilities assumed and goodwill are as follows:

Identifiable Net Assets Acquired

€ in millions
Non-current assets
Other assets
Deferred tax assets
Provisions and liabilities
Deferred tax liabilities
Total acquired net assets

Calculation of Goodwill

€ in millions
Acquisition costs / pro rata enterprise value
Total acquired net assets
Minority interests
Goodwill

March 31,
2023
261
177
33
-256

-68
147

March 31,
2023
137
-147
55
45

The acquired fixed assets mainly consist of technical equipment
and machinery with a fair value of €221 million.

The fair value of the receivables and other assets acquired is
€67 million and corresponds primarily to the gross amounts. These
mainly consist of trade receivables (€58 million).

The 37.3 percent non-controlling interest is measured using the
partial goodwill method for identified pro rata net assets. Goodwill
mainly reflects the value of assets that may not be recognized
separately, such as the workforce and expected synergies.

No significant transaction costs were incurred for the acquisition
of control over AggerEnergie GmbH.

The acquisition contributed €0.2 billion to revenue and €15 million
to consolidated net income from April 1, 2023, to December 31,
2023. If the acquisition had been completed by January 1, 2023,
the revenue contribution of AggerEnergie GmbH would have been
around €0.1 billion and the contribution to consolidated net
income would have been in the low single-digit million euro range.

The purchase price allocation to the identified assets and liabilities
was made on a provisional basis due to the ongoing process of
preparing and reviewing the underlying financial information.
Consequently, changes to the allocation of the purchase price to
the individual assets and liabilities may still be made within the
agreed adjustment period of up to 12 months.

Closing of the Future Consolidation Agreement by ZSE
shareholders

On April 8, 2022, the shareholders of Západoslovenská energetika
a.s. (“ZSE”) and Východoslovenská energetika Holding a.s.
(“VSEH”), E.ON SE and the Slovak Republic, concluded a Future
Consolidation Agreement to combine ZSE and the VSEH Group.
The agreement provides, among other things, for 100 percent of
the VSEH shares to be transferred to ZSE, the sale of all
subsidiaries of VSEH to ZSE, and the implementation of corporate
law changes at VSEH.

The transaction was originally expected to be closed by the end of
2022. Accordingly, the VSEH Group has been presented as a
disposal group in accordance with IFRS 5 since December 31,
2021. The last condition precedent was fulfilled on June 12, 2023.
On November 23, 2023, all closing conditions were formally met,
in particular the signing of the relevant documents such as the
agreement on the transfer and contribution of the shares and the
amended and restated shareholders’ agreement as well as
registration by the Slovak Central Depositary of Securities of the
transfer of all of the VSEH’s shares to ZSE and publication of all
relevant documents with Central Register of Contracts. As of this
date, the VSEH Group was deconsolidated and the value of the
investment in ZSE was increased accordingly by the fair value of
these VSEH shares.

The deconsolidation of VSEH resulted in a gain of €15 million. As
the shares of VSEH were transferred to the ZSE, there was no
gain/loss on the revaluation of a remaining stake in VSEH. The
divested assets (before deduction of minority interests) consisted
of €1,001 million in non-current assets and €415 million in current
assets. In addition, goodwill of €104 million was allocated.
Outgoing liabilities (before deduction of minority interests)
consisted of €738 million in liabilities, €15 million in provisions and
€127 million in deferred tax liabilities.

Deconsolidation results are generally allocated to other operating
income.

Discontinued Operations

Income from discontinued operations in the amount of €61 million
resulted from a transaction already completed in 2005. In
accordance with the purchase agreement, a one-time purchase-
price adjustment was made after an audit of the divested company
was completed in the first quarter of 2023, and the contractual
clause now took effect.

156

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(6) Revenues

(7) Own Work Capitalized

At €93.7 billion, revenues in 2023 were roughly -€22.0 billion
lower than in the previous year.

The growing regulatory asset base in the network area and the
price increases passed on to customers led to an increase in
revenues. In contrast, and more than offsetting this development,
there was a significant reduction due to price developments on the
commodity markets. This was due to forward contracted sales
volumes, which are accounted for as a derivative in accordance
with IFRS 9. The resulting sales must be reported at market prices
at the time of physical delivery. The decreased revenues are mainly
related to income as well as expenses from derivative financial
instruments, which are reported under other operating income.

Revenue realized in the current reporting period and resulting from
performance obligations that had already been fulfilled in whole or
in part in previous reporting periods amounted to €0.8 billion
(2022: €0.7 billion). As of December 31, 2023, the total amount of
performance obligations already contracted but still outstanding
(excluding expected contract extensions and expected new
contracts) amounted to €30.8 billion (December 31, 2022:
€43.6 billion). The greater part of these performance obligations is
expected to be fulfilled within the next three years. In the E.ON
Group, revenues are mainly realized over time. Revenues that were
not recognized under IFRS 15 but under other accounting
standards totaled €5.4 billion in fiscal 2023 (2022: €5.1 billion). Of
this, €5.2 billion was attributable to income-related government
grants from the public sector (2022: €1.6 billion).

Revenues are broken down in detail into intragroup and external
revenues in the segment information (Note 35). They are also
broken down into key regions and technologies. The overview also
shows the effect of revenues on operating cash flow before
interest and taxes.

Own work capitalized amounted to €1,334 million in 2023 (2022:
€997 million) and resulted primarily from capitalized work
performed in connection with ongoing and completed IT projects
and network assets.

(8) Other Operating Income and Expenses

The table below provides details of other operating income for the
periods indicated:

Other Operating Income
€ in millions
Income from exchange rate differences
Gain on derivative financial instruments
(including currency derivatives)

Gain on disposal of non-current assets and
securities
Gain on the reversal of provisions
Miscellaneous
Total

2023
578

2022
853

37,273

70,234

151
29
857
38,888

999
16
1,091
73,193

Other operating income decreased by €34,305 million to
€38,888 million (2022: €73,193 million).

Income and expenses from derivative financial instruments
(including currency derivatives) relate to fair value measurement
under IFRS 9.

Income from derivative financial instruments decreased year-on-
year by €32,961 million to €37,273 million (2022:
€70,234 million), mainly due to price developments on the
commodity markets. Commodity derivatives generated income in
the amount of €35,931 million (2022: €68,302 million). In
addition, income from derivative financial instruments (including

currency derivatives) includes realized income from currency
derivatives of €1,174 million (2022: €1,632 million).

Conversely, income from currency translation effects decreased by
€275 million to €578 million. Corresponding items from derivative
financial instruments (including currency derivatives) are included
in other operating expenses. The effects of foreign currency
translation within other operating income amounted to
€611 million (2022: €2,143 million).

The gain on the disposal of property, plant and equipment and
securities were €848 million below prior year. In 2022 there were
gains on the disposal of Westconnect GmbH in the amount of
€810 million. Gains were realized on the sale of securities in the
amount of €51 million (2022: €26 million).

Miscellaneous other operating income decreased by €234 million
compared with the prior year.

Miscellaneous other operating income also includes items such as
transactions other than ordinary business activities in the amount
of €105 million (2022: €212 million), income from contract
penalties of €67 million (2022: €83 million), rental and lease
income of €59 million (2022: €58 million) and income from the
reversal of investment grants in the amount of €25 million (2022:
€104 million).

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of the year, in spite of the fact that the overall price trend in 2023
was downward. This was partially offset by the fact that forward
procurement contracts are recognized as derivative financial
instruments in accordance with IFRS, and on recognition this
requires adjustment to the market price at the time of delivery.
Accordingly, income from the market valuation of commodity
derivatives is recognized in other operating income.

In addition, the change in provisions for contracted sales
transactions reported that are not subject to IFRS 9 (so-called
own-use contracts), which are economically part of a portfolio that
is partly offset by procurement transactions to be accounted for as
derivative financial instruments. Provisions were significantly
reduced in the current reporting period.

Government subsidies received reduced the cost of materials by
€453 million (2022: €774 million).

The following table provides details of other operating expenses
for the periods indicated:

Other Operating Expenses
€ in millions
Loss from
exchange rate differences

Loss on derivative financial instruments
(including currency derivatives)
Taxes other than income taxes
Loss on disposal of
non-current assets and securities
Impairments of financial assets
Miscellaneous
Total

2023

718

53,345
108

159
984
4,234
59,548

2022

524

66,663
111

223
660
3,555
71,736

Miscellaneous other operating expenses includes third-party
services and passthrough charges in the amount of €1,204 million
(2022: €981 million). Also included are IT expenses in the amount
of €654 million (2022: €480 million), advertising and marketing
expenses in the amount of €279 million (2022: €177 million, as
well as consulting and audit fees in the amount of €217 million
(2022: €155 million). Additionally reported under this item are
office expenses in the amount of €121 million (2022:
€104 million), repair expenses in the amount of €110 million
(2022: €89 million), travel expenses in the amount of €98 million
(2022: €71 million), contributions and fees in the amount of
€67 million (2022: €64 million), insurance premiums in the
amount of €66 million (2022: €56 million), and rents and leases in
the amount of €60 million (2022: €54 million).

Other operating expenses of €59,548 million were
€12,188 million lower than in the previous year (2022: €71,736
million). The decrease is due to the €13,318 million decline in
expenses from derivative financial instruments (including currency
derivatives) to €53,345 million (2022: €66,663 million). Similar to
the development in income from derivative financial instruments,
this was mainly due to price developments on the commodity
markets over the course of the year.

Expenses from commodity derivatives amounted to €52,026
million in 2023 (2022: €64,615 million). In addition, expenses
from derivative financial instruments (including currency
derivatives) includes realized expenses from currency derivatives
of €1,312 million (2022: €1,473 million).

(9) Cost of Materials

The principal components of expenses for raw materials and
supplies and for purchased goods are the purchase of gas and
electricity. Fuel supply is also included in this line item in the
previous year. Expenses for purchased services consist primarily of
network usage charges and maintenance costs.

Cost of Materials
€ in millions
Expenses for raw materials and supplies and
for purchased goods
Expenses for purchased services
Total

2023

2022

47,968
16,260
64,228

93,141
15,486
108,627

Expenses from exchange rate differences in the amount of
€718 million increased by €194 million compared with the
previous year (€524 million).

Foreign currency translation effects within other operating
expenses amounted to €707 million (2022: €1,880 million).

Cost of materials of €64,228 million was significantly lower than
the prior-year level of €108,627 million. This sharp decrease was
mainly due to energy price developments on the commodity
markets. Under the long-term procurement strategy, higher
energy prices in the first half of last year exerted persistent
upward pressure on procurement costs even into the second half

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(10) Financial Results

The following table provides details of financial results for the
periods indicated:

Financial Results
€ in millions
Income/loss from companies in which equity
investments are held

Fair value through P&L
Other

Impairment charges/reversals on other
financial assets
Income/loss from equity investments
Income/loss from securities, interest and
similar income

Amortized cost
Fair value through P&L
Fair value through OCI
Other interest income
Interest and similar expenses

Amortized cost
Fair value through P&L
Other interest expenses
Net interest income/loss
Financial results

2023

2022

92
86
6

-62
30

1,291
238
877
20
156
-2,385
-794
-681
-910

-1,094

-1,064

20
-16
36

-27

-7

2,552
77
457
15
2,003
-1,625
-762
-576
-287
927
920

The significant decrease in financial results relative to the previous
year is primarily attributable to the effects in interest income,
while income from equity investments increased. The decline in
net interest income is mainly due to the fact that interest rates fell
moderately compared to the previous year. This eliminated the
very positive effect of the previous year, when a significant rise in
interest rates had resulted in high income from the discounting of
provisions.

The amortized cost reported in interest and similar income
includes positive effects from cash investments in the amount of
€150 million (2022: €32 million).

The amortized cost reported in interest and similar expenses
included the positive effect from the difference between the
nominal interest rate and the effective interest rate of former
innogy bonds, which was adjusted due to the purchase price
allocation, in the amount of €187 million, which is €17 million
lower than in the previous year. This item was also negatively
impacted by the increased interest expense from the newly issued
bonds, which was higher than the decreased interest expense from
the matured bonds. This was offset by the effects on earnings of
€7 million (2022: €80 million) from non-controlling interests in
subsidiaries that have already been fully consolidated and interests
in fully consolidated partnerships, which are to be recognized as
liabilities in accordance with IAS 32, and with legal structures that
give their shareholders a statutory right of withdrawal combined
with an entitlement to a settlement payment. Capitalized interest
on debt (€8 million; 2022: €8 million) remained unchanged in
interest expenses.

The valuation effects of securities recognized at fair value through
P&L are included in both income (€86 million; 2022: €35 million)
and expenses (-€35 million; 2022: -€236 million) from fair value
through P&L.

Other interest income consists of interest income from discounting
provisions for asset retirement obligations in the amount of
€0 million (2022: €1,338 million), provisions for recultivation and
remediation obligations in the amount of €77 million (2022:
€253 million) and other non-current provisions in the amount of
€31 million (2022: €302 million).

Other interest expenses mainly relate to net interest expenses
from pension provisions of €114 million (2022: €51 million) and
from the discounting of provisions for asset retirement obligations
of €224 million (2022: €0 million) as well as the regular accretion
of other non-current provisions of €245 million (2022: €1 million).

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(11) Income Taxes

Reconciliation to Effective Income Taxes/Tax Rate

The following table provides details of income taxes, including
deferred taxes, for the periods indicated:

Income Taxes
€ in millions
Current taxes

thereof previous years

Deferred taxes

on temporary differences
on loss carryforwards
on tax interest carryforwards and other
tax credits
on valuation allowance

Total income taxes

2023
948
106
-1,546

-1,281
86

141

-492

-598

2022
567
-165

-812
956
-376

-178

-1,214

-245

The income tax rate of 31 percent (2022: 31 percent) applicable in
Germany is composed of corporate income tax (15 percent), trade
tax (15 percent) and the solidarity surcharge (1 percent). The
income tax rate of 31 percent corresponds to the tax rate
applicable to E.ON SE for 2023. The differences from the effective
tax rate are reconciled as follows:

Income/loss from continuing operations before taxes
Expected income taxes
Foreign tax rate differentials
Changes in tax rate/tax law
Tax effects on tax-free income
Tax effects of non-deductible expenses and permanent differences
Tax effects on income from companies accounted for under the equity method
Tax effects of changes in value and non-recognition of deferred taxes
Tax effects of other taxes on income
Tax effects of income taxes related to other periods
Other
Effective income taxes/tax rate

Continuing operations generated tax income of €598 million in the
reporting year (2022: tax income of €245 million). This
corresponds to a theoretical tax rate of -592 percent. This was
primarily due to market valuations of commodity derivatives in
various countries with different tax rates, which resulted in a
higher tax rate. In addition, the tax rate was influenced by changes
in the value of deferred tax assets as well as taxes for previous
years.

€ in millions
101
31
-203
30
-91
234
-102

-618
156
-31

-4

-598

2023
in %
100.0
31.0
-200.8
29.6
-90.4
232.2
-101.2

-611.8
154.1
-31.0

-3.6
-591.9

€ in millions
1,997
619
162
-95

-173
475
-61

-1,264
46
59
-13

-245

2022
in %
100.0
31.0
8.1
-4.8

-8.6
23.8
-3.1

-63.3
2.3
2.9
-0.6

-12.3

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Various temporary differences as well as various unused tax loss
carryforwards and tax credits result in the following deferred tax
assets and liabilities:

Deferred Tax Assets and Liabilities

€ in millions
Intangible assets
Right-of-use assets
Property, plant and equipment
Financial assets
Inventories
Receivables (including derivative financial instruments)
Provisions for pensions and similar obligations
Miscellaneous provisions
Liabilities (including derivative financial instruments)
Loss carryforwards
Other
Subtotal
Changes in value
Deferred taxes (gross)
Netting
Deferred taxes (net)

Current

Tax assets
108
3
337
209
148
1,076
2,018
1,326
8,289
598
878
14,990
-648
14,342
-10,837
3,505
1,935

Dec. 31, 2023
Tax liabilities
535
737
3,832
140
13
5,673
55
247
1,542
–
286
13,060
–
13,060
-10,837
2,223
274

Tax assets
214
5
418
266
119
1,916
1,741
1,758
14,053
847
1,079
22,416
-1,170
21,246
-19,167
2,079
965

Dec. 31, 2022
Tax liabilities
555
629
3,603
157
1
13,390
11
265
2,327
–
1,022
21,960
–
21,960
-19,167
2,793
585

Income tax assets and liabilities consist primarily of income taxes
for the respective current year and for prior-year periods that have
not yet been definitively examined by the tax authorities. These
items can be found in the balance sheet.

As of December 31, 2023, €16 million (2022: €16 million) in
deferred tax liabilities were recognized for the differences between
net assets and the tax bases of subsidiaries and associated
companies (outside basis differences). Accordingly, deferred tax
liabilities were not recognized for temporary differences of €2,062
million (2022: €3,067 million) at subsidiaries and associated
companies, as E.ON is able to control the timing of their reversal
and the temporary difference will not reverse in the foreseeable
future.

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No deferred tax assets were recognized, or were no longer
recognized, on the following tax loss carryforwards, interest
carryforwards and other deferred tax assets:

Tax Loss Carryforwards, Tax Interest Carryforwards and Other Tax Credits without Recognition of
Deferred Tax Assets

December 31, 2023

€ in millions
Amounts at the balance sheet date
of which amounts without recognition of deferred
taxes

‒ unlimited duration
‒ limited duration

‒ of which up to 5 years
‒ of which up to 9 years
‒ of which 10 years or longer

Tax loss
carryforwards
corporate tax

10,349

8,678
4,498
4,180
182
283
3,715

Tax loss
carryforwards
trade tax and
local income
taxes

Tax interest
carryforwards
and other tax
credits

Tax loss
carryforwards
corporate tax1

December 31, 2022

Tax loss
carryforwards
trade tax and
local income
taxes

Tax interest
carryforwards
and other tax
credits

2,214

1,777
1,727
50
50
–
–

2,837

2,515
2,515
–
–
–
–

9,597

8,371
4,726
3,645
174
272
3,199

2,106

1,928
1,859
69
69
–
–

2,545

2,177
2,177
–
–
–
–

from the regulated area. E.ON also expects derivative financial
instruments recognized at negative fair value to have a positive
effect on non-operating earnings through a reversal during the
planning period. When considered in the aggregate, the
management has concluded that each company will generate
sufficient taxable income against which the previously unused tax
losses and deductible temporary differences can be offset.

Income taxes recognized in other comprehensive income break
down as follows:

Income Taxes of Other Comprehensive Income
€ in millions
Deferred taxes within OCI
Current taxes within OCI
Total

2023
602
-2
600

2022
124
-13
111

1The presentation of tax loss carryforwards corporate tax without recognition of deferred taxes was adjusted by €3.2 billion from unlimited duration to limited duration (of which 10 years or longer) as of
December 31, 2022, in accordance with IAS 8.41 ff.

The expiring tax loss carryforwards relate exclusively to countries
other than Germany.

Deferred tax assets were not recognized, or are no longer
recognized, in the amount of €776 million (2022: €2,918 million)
for temporary differences which are recognized in income and
equity.

Current tax expense was reduced by €26 million (2022: €4 million)
due to the use of previously unrecognized tax losses. The change in
previously unrecognized tax losses and temporary differences
reduced deferred tax expense by €77 million (2022: €71 million).

As of December 31, 2023, E.ON reported deferred tax assets for
companies that incurred losses in the current or the prior-year
period that exceed the deferred tax liabilities by €2,028 million
(2022: €478 million). Of this amount, €1,672 million is
attributable to companies in Germany and €339 million to
companies in the UK. These amounts mainly include deductible
temporary differences. Recognition in the UK is due to the fact
that expenses for the integration of new business activities and
processes that led to tax losses in the past are non-recurring. In
Germany, recognition is based, among other factors, on taxable
profits realized in the current financial year and on sufficient
taxable profits in subsequent financial years. These factors are
based on scenario analyses as well as stable earnings contributions

162

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→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Changes in income taxes recognized in other comprehensive
income for the years 2023 and 2022 break down as follows:

Changes in Income Taxes of Other Comprehensive Income

€ in millions
Cash flow hedges
Fair value measurement of financial instruments
Currency translation adjustments
Remeasurements of defined benefit plans
Companies accounted for under the equity method
Total

Additions and Disposals

Effects from additions and disposals and from discontinued
operations resulted in changes in deferred taxes totaling
€27 million (2022: -€21 million).

Changes in deferred tax assets in the current year, with net
addition of €38 million, relate mainly to liabilities (+€26 million),
property, plant and equipment (+€11 million) and loss
carryforwards (+€7 million). Changes in deferred tax liabilities,
with net additions of €65 million, relate primarily to property, plant
and equipment (+€39 million), receivables (+€34 million) and
liabilities (-€16 million).

Changes in deferred tax assets in the prior year, with net disposals
of €1 million, relate mainly to intangible assets (+€12 million),
property, plant and equipment (+€11 million) and liabilities (-€18
million). Changes in deferred tax liabilities, with net disposals of -
€20 million, relate primarily to intangible assets (+€15 million),
property, plant and equipment (-€48 million) and receivables (-€11
million) as well as liabilities (+€25 million).

Before
income taxes

-675
76
-15

-1,427
477
-1,564

Income taxes
207
-13
23
272
–
489

2023
After
income taxes

-468
63
8
-1,155
477
-1,075

Before
income taxes
1,591
-155

-491
2,426
616
3,987

Income taxes

-183
28
-170

-277
0
-602

2022
After
income taxes
1,408
-127

-661
2,149
616
3,385

The VSEH Group has been presented as a disposal group in
accordance with IFRS 5 since December 31, 2021. The transaction
was then concluded on November 23, 2023 (see Note 5). The
VSEH Group was deconsolidated on this date and the value of the
investment in ZSE was increased accordingly by the fair value of
these VSEH shares. The deconsolidation of VSEH resulted in the
derecognition of deferred tax liabilities in the amount of €127
million.

Global Minimum Tax

The E.ON Group is included in the scope of application of the OECD
Model Rules of Pillar 2 for the national implementation of the
global minimum tax. The Model Rules were transposed into
German law through the introduction of a minimum tax law in
December 2023, which applies to all fiscal years beginning after
December 31, 2023. Because the legislation had not entered into
force as at the reporting date in any country in which the E.ON
Group has business units as defined by the legislation, there was
no current tax exposure associated with it for the 2023 fiscal year.
The E.ON Group applies the exemption in IAS 12 for the
recognition and disclosure of information on deferred tax assets
and liabilities in connection with income taxes from global
minimum taxation.

The minimum tax legislation applicable from 2024 requires E.ON
to determine the effective tax rate for each country in which
business units as defined by the law exist and, if the effective tax
rate determined is below the minimum tax rate of 15 percent, to
pay a so-called supplementary tax equal to the difference between
the effective tax rate and the minimum tax rate.

An initial indicative analysis was carried out as of the reporting
date to determine the fundamental impact and the jurisdictions in
which E.ON could be exposed to potential effects in connection
with a supplementary tax.

The first step was to determine whether the safe harbor
regulations were applicable. The effective tax rate was calculated
on a simplified basis for countries that were not exempt from the
Pillar 2 calculation after a review of the safe harbor rules.

This initial indicative analysis did not identify any countries in
which the E.ON Group operates that could result in a material
impact in the form of a supplementary tax. Consequently, E.ON is
currently not expected to be materially affected by a
supplementary tax. Accordingly, the average effective Group tax
rate would have remained unchanged if the minimum tax
legislation had already been in force on the balance sheet date.

163

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

(12) Personnel-Related Information

Long-term Variable Compensation

Personnel Costs

The following table provides details of personnel costs for the
periods indicated:

Personnel Costs
€ in millions
Wages and salaries
Social security contributions
Pension costs and other employee benefits

Pension costs

Total

2023
4,908
772
330
304
6,010

2022
4,292
702
443
420
5,437

Personnel costs of €6,010 million were €573 million higher than
the prior-year figure of €5,437 million. The change is primarily
attributable to the higher headcount and tariff increases. This is
counteracted by lower expenses for pensions.

Share-Based Payment

The expenses for share-based payment in 2023 (the E.ON
Performance Plan) amounted to €93.3 million (2022:
€24.6 million).

Employee Stock Purchase Program

The voluntary employee stock purchase program took place again
in 2023, giving employees in the German Group companies the
opportunity once again to purchase E.ON shares at favorable
conditions. The favorable pricing conditions granted within the
framework of the employee stock purchase program (IFRS 2,
“Share-based Payment”) resulted in personnel expense of
€6.7 million; the offsetting entry was made in equity.

Members of the Management Board of E.ON SE and certain
executives of the E.ON Group receive share-based payment as part
of their voluntary long-term variable compensation. The purpose
of such compensation is to reward their contribution to E.ON’s
growth and to further the long-term success of the Company. This
variable compensation component, comprising a long-term
incentive effect along with a certain element of risk, provides for a
logical linking of the interests of shareholders and management.

The following discussion includes reports on the E.ON
Performance Plan introduced in 2017.

E.ON Performance Plan (EPP)

In the years 2017 to 2023, E.ON granted the members of the
Management Board of E.ON SE and certain executives of the E.ON
Group virtual shares under the E.ON Performance Plan. The
vesting period of each tranche is four years. Vesting periods start
on January 1 of each year.

The beneficiary will receive virtual shares in the amount of the
agreed target. The conversion into virtual shares will be based on
the fair market value on the date when the shares are granted. The
number of virtual shares allocated may change during the four-
year vesting period. For tranches granted through 2021, the only
relevant criterion was the total shareholder return (“TSR”) of E.ON
stock compared with the TSR of the companies in a peer group
(“relative TSR”). The final number of virtual shares allocated in the
2022 tranche depends on three performance criteria, namely,
relative TSR, ROCE, and the E.ON Sustainability Index.

The TSR is the return on E.ON stock, which takes into account the
stock price plus the assumption of reinvested dividends, adjusted
for changes in capital. The peer group used for relative TSR will be
the other companies in E.ON’s peer index, the STOXX® Europe 600
Utilities. During a tranche’s vesting period, E.ON’s TSR

performance is measured once a year in comparison with the
companies in the peer group and set for that year.

The E.ON Sustainability Index reflects the four most relevant ESG
aspects (ESG = Environment, Social, Governance) at E.ON. In 2023
these aspects were: climate action, diversity, health and safety,
and ESG ratings.

For the tranches granted up to and including 2021, the final
number of virtual shares is determined as follows: E.ON’s TSR
performance in a given year determines the final number of one-
fourth of the virtual shares granted at the beginning of the vesting
period. If target attainment in a year is below the threshold defined
by the Supervisory Board upon allocation, the number of virtual
shares is reduced by one-fourth. If E.ON’s performance is at the
upper cap or above, the fourth of the virtual shares allocated for
the year in question will increase, but to a maximum of 150
percent.

For the tranche granted beginning in 2022, in addition to TSR (50
percent weighting), ROCE (25 percent weighting) and the E.ON
Sustainability Index (25 percent weighting) are also taken into
account as performance criteria.

The resulting number of virtual shares at the end of the vesting
period is multiplied by the average price of E.ON stock in the final
60 days of the vesting period. This amount is increased by the
dividends distributed on E.ON stock during the vesting period and
then paid out. The sum of the payouts is capped at 200 percent of
the agreed target.

The virtual shares are canceled if the employment relationship of
the beneficiary ends before the end of the term for reasons within
the control of the beneficiary. If the employment relationship of
the beneficiary is terminated before retirement, through the end of
a limited term or for operational reasons before the end of the
term, the virtual shares do not expire but are settled at maturity.

164

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Consolidated Financial Statements

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

If the employment relationship ends before maturity due to death
or permanent invalidity, the virtual shares are settled before
maturity. The same shall apply in the case of a change in control
related to E.ON SE and also if the allocating company leaves the
E.ON Group before maturity.

The following are the base parameters of the tranches of the E.ON
Performance Plan active in 2023:

E.ON Performance Plan Virtual Shares

Date of issuance
Term
Target value at issuance

The provision for the fourth, fifth, sixth and seventh tranches of
the E.ON Performance Plan as of the balance sheet date is €165.0
million (2022: €92.9 million). The expense for the fourth, fifth,
sixth and seventh tranches amounted to €93.3 million in the 2023
fiscal year (2022: €24.6 million).

Employees

In 2023, E.ON employed an average personnel of 71,629 (2022:
68,888). Part-time employees were taken into account on a pro
rata basis when this figure was calculated. In addition, an average
of 2,064 apprentices were employed in the reporting year in
Germany (2022: 2,033).

7th tranche
Jan. 1, 2023
4 years
€ 9.32

6th tranche
Jan. 1, 2022
4 years
€ 12.76

5th tranche
Jan. 1, 2021
4 years
€ 7.65

4th tranche
Jan. 1, 2020
4 years
€ 7.88

The breakdown by segment is shown in the following table:

Employees—Core Workforce1
FTE2
Energy Networks
Customer Solutions
Corporate Functions/Other
E.ON Group

1Excluding apprentices, interns and working students.
2Full-time equivalents.

2023
39,599
26,171
5,859
71,629

2022
38,172
25,106
5,610
68,888

165

E.ON Integrated Annual Report 2023

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

The fees for financial statement audits relate to the audit of the
Consolidated Financial Statements and the legally mandated
financial statements of E.ON SE and its affiliates. They also include
the fees for auditing reviews of the IFRS interim financial
statements and other audit services directly required by the audit
of the Financial Statements.

The fees for other attestation services include all attestation
services that are not auditing services and are not used in
connection with the audit of the Consolidated Financial
Statements. These fees are for legally required attestation services
and for other voluntary attestation services (e.g., the audit of the
sustainability reporting, Renewable Energy Sources Act (EEG) and
the Act on Combined Heat and Power Generation (KWKG) and
audit services in connection with new IT systems).

List of Shareholdings

The list of shareholdings pursuant to Section 313 (2) HGB is an
integral part of these Notes to the Financial Statements and is
presented in Note 38.

(13) Other Information

German Corporate Governance Code

On December 19, 2023, the Management Board and the
Supervisory Board of E.ON SE made a declaration of compliance
pursuant to Section 161 of the German Stock Corporation Act
(“AktG”). The declaration has been made permanently and publicly
accessible to stockholders on the Company’s website
(www.eon.com).

Fees and Services of the Independent Auditor

During 2023, the following fees were recorded as expenses for the
services provided by the independent auditor of the Consolidated
Financial Statements, KPMG and by companies in the international
KPMG network:

Independent Auditor Fees
€ in millions
Financial statement audits

Domestic

Other attestation services

Domestic

Tax advisory services

Domestic
Other services
Domestic

Total

Domestic

2023
34
25
7
7
0
0
0
0
41
32

2022
32
23
6
6
1
–
0
0
39
29

(14) Earnings per Share

The computation of basic and diluted earnings per share for the
periods indicated is shown below:

Earnings per Share
€ in millions
Income/loss from continuing operations
Less: Non-controlling interests
Income/loss from continuing operations
(attributable to shareholders of E.ON SE)

Income/loss from discontinued operations,
net
Less: Non-controlling interests
Income/loss from discontinued operations,
net (attributable to shareholders of E.ON SE)

Net income/loss attributable to shareholders
of E.ON SE
in €
Earnings per share (attributable to
shareholders of E.ON SE)
from continuing operations
from discontinued operations
from net income/loss
Weighted-average number of shares
outstanding (in millions)

2023
699
-243

2022
2,242
-411

456

1,831

61
–

–
–

–

517

1,831

0.18
0.02
0.20

0.70
–
0.70

2,611

2,609

The computation of diluted earnings per share is identical to that
of basic earnings per share because E.ON SE has issued no
potentially dilutive ordinary shares. The increase in the weighted-
average number of shares outstanding resulted primarily from the
issue of treasury shares in E.ON SE under the voluntary employee
stock purchase program.

166

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

(15) Goodwill, Intangible Assets, Right-of-use Assets
and Property, Plant and Equipment

The changes in goodwill and intangible assets, in right-of-use
assets, and in property, plant and equipment, are presented in the
tables on the following pages:

Goodwill, Intangible Assets, Right-of-use Assets and Property, Plant and Equipment

Acquisition and production costs

Exchange
rate
differ-
ences

Changes
in scope
of
consoli-
dation1

Jan. 1,
2023

Additions

Disposals

Transfers

Dec. 31,
2023

Jan. 1,
2023

Exchange
rate
differ-
ences

Changes
in scope
of
consoli-
dation1

€ in millions

Accumulated depreciation

Net
carrying
amounts

Additions

Disposals

Transfers

Impair-
ment

Reversals

Dec. 31,
2023

18,799
2,077

3,394
1,023
469
6,963
826
2,438

Goodwill
Customer relationships and similar items
Concessions, commercial property rights,
licenses, and similar rights
Development expenditures
Advance payments
Intangible assets
Land and buildings
Networks
Storage, e-charging and production
3
capacities
43
Technical equipment and machine
193
Fleet, office and business equipment
3,503
Right-of-use assets
1,172
Real estate and leasehold rights
Buildings
4,118
Technical equipment, plant and machinery 58,556
Other equipment, fixtures, furniture and
office equipment

1,395

50
12

1
7
-1
19
9
–

–

-1
2
10
2
29
138

62
25

3
–
–
28
-4
–

–
–
1
-3

-14
51
568

–
–

374
47
343
764
177
489

1
44
82
793
29
95
2,701

–

-8

-186

-257

-15

-466

-69

-53

–

-1

-48

-171

-12

-126

-462

–
1

18,911
2,107

-1,782

-1,389

134
98
-211
22
11
4

–
–
-3
12
-43

-646
2,163

3,720
918
585
7,330
950
2,878

4
85
227
4,144
1,134
3,521
63,664

-1,485

-624

-12

-3,510

-345

-669

-1

-12

-99

-1,126

-75

-1,613

-28,561

-3

-9

-2

-5
1
-15

-2
–

–
–
–
-2
–
-9

–
6

-7

-1
–
-2
3
1

–
–
-2
2
17
-15

–

-177

-294

-135
–
-606

-110

-248

-1

-5

-53

-417

-2

-111

-52

-363

-2,050

–
8

173
256
–
437
51
16

–
1
41
109
–
119
307

–
–

-9
–
–
-9
3
-4

–
–
3
2
–
136
-328

-2

211

-84

1,659

-837

-61

-150

-13

Advance payments and construction in
progress
Property, plant and equipment
1Includes additions from aquisitions (see Note 5) and reclassifications to assets/disposal groups held for sale.

3,327
68,568

13
180

13
673

2,570
5,606

-31

-715

-1,365
193

4,527
74,505

-63

-31,149

-1

-61

–

-422

-2,313

–
505

–

-205

–
–

-2

-57

-4

-63

-2
–

–
–
–
-2

-5

-2

-52

-1

-54

-114

–
–

30
–
–
30
–
–

–
–
–
–
–
1
2

–

–
3

-1,785

-1,561

17,126
546

-1,596

-566

-15

-3,738

-402

-904

-2

-16

-110

-1,434

-65

-1,494

-31,097

2,124
352
570
3,592
548
1,974

2
69
117
2,710
1,069
2,027
32,567

-982

677

-118

-33,756

4,409
40,749

167

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Changes in Goodwill and in Other Reversals and Impairment Charges by Segment from January 1, 2023

€ in millions
Net carrying amount of goodwill as of January 1, 2023
Changes resulting from acquisitions and disposals
Impairment charges
Other changes1
Net carrying amount of goodwill as of December 31, 2023
Growth rate (in %)2
Cost of capital (in %)2
Other non-current assets3
Impairment
Reversals
1Other changes include effects from intragroup restructuring, transfers, exchange rate differences and reclassifications to assets held for sale.
2Presented here are the growth rates and cost of capital for selected cash-generating units whose respective goodwill is material when compared with the carrying amount of all goodwill.
3Other non-current assets consist of intangible assets, right-of-use assets and of property, plant and equipment.

Germany
7,597
–
–
54
7,651
1.25
4.3

-6
1

Energy Networks

Customer Solutions

Sweden
83
–
–
–
83
–
–

ECE/
Turkey
236
–
–
9
245
–
–

Germany
6,752
–
–
–
6,752
1.25
6.0

UK
1,848
–
–
38
1,886
1.25
6.4

Nether-
lands
73
–
–
8
81
–
–

–
–

–
30

-124
2

-37
–

–
–

Corporate
Functions/
Other
–
–
–
–
–
–
–

E.ON
Group
17,017
–
–
109
17,126
–
–

–
–

-178
33

Other
428
–
–
–
428
–
–

-11
–

168

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Goodwill, Intangible Assets, Right-of-use Assets and Property, Plant and
Equipment

Acquisition and production costs

Exchange
rate
differ-
ences

Changes
in scope
of
consoli-
dation1

-142

-251

Additions
–

Disposals
–

Transfers
–

Dec. 31,
2022
18,799

Jan. 1,
2022

-1,784

Exchange
rate
differ-
ences
6

Changes
in scope
of
consoli-
dation1
–

Additions
–

Disposals
–

Transfers
–

Jan. 1,
2022
19,192

2,152

3,089
902
366
6,509
830
2,197

17
34
202
3,280
1,203
4,484

€ in millions
Goodwill
Customer relationships and similar
items

Concessions, commercial property
rights, licenses, and similar rights
Development expenditures
Advance payments
Intangible assets
Land and buildings
Networks
Storage, e-charging and production
capacities
Technical equipment and machine
Fleet, office and business equipment
Right-of-use assets
Real estate and leasehold rights
Buildings
Technical equipment, plant and
machinery

Other equipment, fixtures, furniture
and office equipment

-28

-21

-26

-2

-77

-13
–

–
–
-7

-20

-15

-35

-34

-19

-4
–
-57

-1
1

–
–
-5

-5
–
-1

–

306
77
280
663
111
281

1
10
50
453
8
83

-13

-80

-5

-6

-104

-75

-41

-15

-1

-42

-174

-30

-509

–

2,077

-1,228

119
79
-169
29
-26
–

–
–
-5

-31
6
96

3,394
1,023
469
6,963
826
2,438

3
43
193
3,503
1,172
4,118

-1,200

-517

-11

-2,956

-285

-458

-4

-9

-100

-856

-79

-1,974

9
18
-1
46
6
–

–
1
2
9
3
15

57,533

-848

-612

2,175

-722

1,030

58,556

-27,486

401

1,400

-6

-10

132

-164

1,395

-845

Advance payments and construction
2,717
in progress
67,337
Property, plant and equipment
1Includes additions from acquisitions (see Note 5) and reclassifications to assets/disposal groups held for sale.

1,905
4,303

-950

-648

-25

-46

-75

-1,500

-1,149
26

3,327
68,568

-93

-30,477

1
426

Accumulated depreciation

Net
carrying
amounts

Impair-
ment

-4

–

-1

-1
–
-2

-3
–

–
–
–
-3
–
-4

-32

-1

-8

-45

Reversals
–

–

1
–
–
1
–
–

–
–
–
–
–
1

–

–
17

Dec. 31,
2022

-1,782

Dec. 31,
2022
17,017

-1,389

688

-1,485

-624

-12

-3,510

-345

-669

-1

-12

-99

-1,126

-75

-1,613

1,909
399
457
3,453
481
1,769

2
31
94
2,377
1,097
2,505

-28,561

29,995

-837

558

-63

-31,149

3,264
37,419

–
10
–
39
-1

-1

–
–
6
4
–
–

-5

–
51

-215

-360

-139
–
-714

-111

-229

–

-4

-49

-393

-3

-132

-1,944

-140

–

-2,219

69
5
–
79
37
19

3
–
38
97
4
484

435

154

–

-3
–
–
-3
12
–

–
–
4
16
–
-3

-7

-6

36
1,113

-15

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→ Notes

Changes in Goodwill and in Other Reversals and Impairment Charges by Segment from January 1, 2022

Energy Networks

Customer Solutions

€ in millions
Net carrying amount of goodwill as of January 1, 2022
Changes resulting from acquisitions and disposals
Impairment charges
Other changes1
Net carrying amount of goodwill as of December 31, 2022
Growth rate (in %)2, 3
Cost of capital (in %)2, 3
Other non-current assets4
Impairment
Reversals
1Other changes include effects from intragroup restructuring, transfers, exchange rate differences and reclassifications to assets held for sale.
2Presented here are the growth rates and cost of capital for selected cash-generating units whose respective goodwill is material when compared with the carrying amount of all goodwill.
3Energy Networks Germany was valued with a detailed planning period of 3 years and on the basis of the regulatory asset base.
4Other non-current assets consist of intangible assets, right-of-use assets and of property, plant and equipment.

Germany
7,848
–
–
-251
7,597
1.25
3.9

Sweden
90
–
–
-7
83
–
–

-3
–

–
–

ECE/
Turkey
252
–
–
-16
236
–
–

Germany
6,752
–
–
–
6,752
1.25
5.5

UK Netherlands
73
–
–
–
73
–
–

1,950
–
–
-102
1,848
1.25
5.9

–
17

-19
–

-20
–

–
–

Corporate
Functions/
Other
–
–
–
–
–
–
–

–
–

E.ON Group
17,408
–
-4

-387
17,017
–
–

-50
18

Other
443
–
-4

-11
428
–
–

-8
1

Goodwill and Intangible Assets
The changes in goodwill within the segments, as well as the
allocation of impairments and their reversals to each reportable
segment, are presented in the tables above.

Impairments
To perform the impairment tests, E.ON first determines the fair
values less costs of disposal of its cash-generating units. Because
there were no binding sales transactions or market prices for the
respective cash-generating units in 2023, fair values were
calculated based on discounted cash flow methods.

Valuations are based on the medium-term corporate planning
authorized by the Management Board. The calculations for
impairment-testing purposes are generally based on the three
planning years of the medium-term plan plus two additional
detailed planning years. Deviations from this are made in certain
justified exceptional cases. The cash flow assumptions extending
beyond the detailed planning period are determined using
sustainable, business and currency-specific growth rates based on
the analysis of past years and predictions for the future. In 2023,
the sustainable, currency-specific inflation rate used for the euro
area was 1.25 percent (2022: 1.25 percent). The discount rates
after taxes used for discounting cash flows in the annual
impairment test are calculated using market data for each cash-
generating unit, and as of the valuation date, ranged between 4.3
and 12.6 percent after taxes (2022: between 3.9 and 13.0
percent).

The principal assumptions underlying the determination by
management of recoverable amount are the respective forecasts
for E.ON’s investment activity, the regulatory framework, as well
as for growth rates and the cost of capital, of revenue and EBITDA
margin (in the Customer Solutions business) and Regulatory Asset
Base and regulatory return (in the Energy Networks business). The
assumptions used in these forecasts regarding the development of
commodity market prices, future electricity and gas prices in the
wholesale and retail markets are based on external market data
from reputable suppliers as well as internal assessments and also
appropriately take into account climate-related impacts on market
conditions and macroeconomic linkages as well as the
sustainability targets anchored in the Group strategy, such as the
reduction of Scope 3 emissions by 100 percent by 2050. For
example, impacts of climate targets on CO2 prices and changing
weather conditions (temperature, wind, etc.) are included. The
assumed development of all of the key influencing factors
mentioned corresponds to the expectations set out in the forecast
report.

170

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→ Notes

Overall, medium-term planning assumes that the regulatory
environment will remain stable.

Against the backdrop of the expansion of the network, which is
key to achieving climate protection targets, the detailed planning
period provides for a significant increase in investments in the
Energy Networks Germany segment, with a corresponding
increase in the regulated asset base. We expect regulatory returns
to remain stable.

In the Customer Solutions Germany and UK segments, we
anticipate a significant increase in investments and a significant
decline in sales revenue during our detailed planning period
compared to the 2023 financial year. The decline in revenues in
spite of a comparable number of customers is due to the
assumption that prices on the commodity markets will normalize.
We expect a moderate increase in estimated EBITDA margins in
the detailed planning period in the Customer Solutions UK and
Germany segments due to the planned portfolio optimization and
the expansion of our growth business areas.

The above discussion applies accordingly to the testing for
impairment of intangible assets and of property, plant and
equipment and investments subject to the application of the equity
method (IAS 28), and of groups of these assets. If the goodwill of a
cash-generating unit is combined with assets or groups of assets
for impairment testing, the assets must be tested first.

Goodwill
On September 11, 2023, the Board of Management of E.ON SE
adopted a new management concept for the Group. This will take
effect from 1 January, 2024, and, due to the concept in IFRS 8,
will require a change in the definition of the operating segments
and thus also a reallocation of the existing goodwill of all segments
affected by the changes as of 1 January, 2024. The decision of the
Board of Management was seen as a triggering event to review the
recoverability of these goodwill amounts. As of September 2023,
no impairment losses were identified.

The performance of the annual goodwill impairment tests in the
2023 financial year did not result in any impairments under IAS
36. The determination of a value in use was not necessary for any
cash generating unit.

The tested goodwill of all cash-generating units whose respective
goodwill as of the balance sheet date is material in relation to the
total carrying amount of all goodwill shows a surplus of
recoverable amounts over the respective carrying amounts and,
therefore, based on current assessment of the economic situation,
only a significant change in the material valuation parameters that
is not considered realistic would necessitate the recognition of
goodwill impairment.

In 2023, impairments were recognized on the goodwill of the
Slovakian operations after they were classified as held for sale
under IFRS 5 since the fourth quarter of 2021 (see Note 5 for
more information). These required impairments amounted to
approximately €44 million and are attributable to the fact that the
fair value less costs of disposal was below the carrying amount of
the disposal group. An impairment loss in such a case will always
be allocated first to the carrying amount of any goodwill allocated
to the disposal group. In November 2023, following the closing of
the Future Consolidation Agreements the VSEH has been
deconsolidated (see also Note 5).

Intangible Assets
In 2023, approximately €63 million of impairments were
recognized on intangible assets. In terms of amount, the largest
impairment loss occurred in the Customer Solutions Germany
segment. The German Sales Technology Platform, a platform for
technological solutions in German sales, was written down by €44
million on an unscheduled basis. The migration of certain
customers planned for calendar year 2023 has been postponed
indefinitely. In addition, the current medium-term planning no
longer includes costs for multi-client capability, but costs for the
continuation of the previous billing systems. As of December 31,

2023, the new carrying amount of the sales platform, which
consists of several assets and sub-assets, amounts to €84 million.

Reversals of impairments on intangible assets amounted to around
€30 million in the current year. A write-up of €30 million was
recognized on the Delgaz power grid in the cash generating unit
Energy Networks Romania, bringing the new carrying amount to
€521 million. The main reasons for this are the more stable market
environment compared to 2021 with a functioning allocation
mechanism, including a price cap for energy procurement for the
distribution system operator’s technological consumption, as well
as the positive development of the regulatory asset base.

In 2023, the Company recorded an amortization expense on
intangible assets of €606 million (2022: €714 million).

As of December 31, 2023, the closing balance of intangible assets
with an indefinite useful life amounted to €82 million (2022: €308
million). These assets are mainly attributable to concession rights
from the Swedish energy grid with a value of €37 million. In 2023,
easements/rights of way from the Energy Network Germany
segment in the amount of €237 million were reclassified from an
indefinite useful life to a limited useful life. Implementation has
been done prospectively in accordance with IAS 8.36.

In the year under review, €104 million (2022: €68 million) of
research and development costs within the meaning of IAS 38
were recognized as expenses.

Rights of Use
In 2023, the Company recorded an amortization expense of €417
million (2022: €393 million). Impairment charges on rights of use
amounted to €2 million (2022: €3 million).

Property, Plant and Equipment
Impairments on property, plant and equipment amounted to €114
million in 2023.

171

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(16) Companies Accounted for under the Equity
Method and Other Financial Assets

The following table shows the structure of the companies
accounted for under the equity method and the other financial
assets as of the dates indicated:

Companies Accounted for under the Equity Method and Other Financial Assets

€ in millions
Companies accounted for under the equity method
Equity investments
Non-current securities
Total

December 31, 2023
Joint
Ventures1
3,730
296
–
4,026

Associates1
2,923
803
–
3,726

E.ON Group
5,532
2,191
1,347
9,070

December 31, 2022
Joint
Ventures1
2,936
256
–
3,192

Associates1
2,596
788
–
3,384

E.ON Group
6,653
2,561
1,177
10,391

1The associates and joint ventures presented as equity investments are associated companies and joint ventures accounted for at cost on materiality grounds.

Companies accounted for under the equity method consist solely
of associates and joint ventures.

The €1,120 million increase in the carrying amounts of companies
measured at equity compared with December 31, 2022, was
mainly due to the increase in the carrying amount of the
investment in Západoslovenská energetika a.s. (ZSE) in Slovakia
and the application of IAS 29 in Turkey.

The net income from companies measured at equity of €478
million includes impairments of €237 (2022: €878 million) and
reversals of impairment losses of €7 million (2022: €311 million).
These impairments and reversals primarily relate to the application
of IAS 29 in Turkey.

The Customer Solutions Germany segment was most affected
(€76 million). Two geothermal plants in Kirchwaidach (by €25
million) and Heidelberg (by €12 million) were impaired to their new
carrying amounts of €15 million and €47 million, respectively. The
main reasons for the impairments were the expected sustained
decline in earnings as well as disagreements with the customer of
one plant regarding further investment requirements. In addition,
in the past, construction work on one of the large biomass power
plant projects (Green Steam Hürth) had been significantly delayed
due to the Covid-19 pandemic, rising procurement costs and
financial challenges on the part of our technical suppliers.
Although these problems have been solved in the meantime, based
on the latest assessments of the business case, there was an
impairment loss of €28 million (new carrying amount €142
million).

In the UK, impairment losses amounted to €29 million, mainly due
to the full write-off of conventional meters that were no longer
needed and which have been replaced by smart energy meters
(€14 million), as well as the impairment on the Monkerton
combined heat and power plant (€13 million, new book value €25
million) due to lower earnings expectations and higher cost of
capital.

Reversals of impairments on property, plant and equipment
amounted to around €3 million in the current year (2022: €17
million).

Depreciation amounted to €2,313 million in 2023 (2022: €2,219
million).

In 2023, land and buildings as well as technical equipment and
machinery in the amount of €173 million (2022: €0 million) were
subject to restrictions on disposal.

Borrowing costs in the amount of €8 million were capitalized in
2023 (2022: €8 million) as part of the historical cost of property,
plant and equipment.

172

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In April 2022, Turkey was classified as a hyperinflationary
economy. Consequently, since the second quarter of 2022, the
financial statements prepared on the basis of historical cost have
been adjusted in accordance with IAS 29 for the first time for two
Turkish investees included in the Group using the equity method
(joint ventures). Under IAS 29, financial statements in the
functional currency of a hyperinflationary economy must be
expressed in terms of the measuring unit current at the balance
sheet date. As a result, among other things, non-monetary assets
and liabilities are generally adjusted using a general price index and
a gain or loss on the net monetary position is recognized. The
adjustment under IAS 29 is made on the basis of the consumer
price index as of December 31, 2023, published by the Turkish
Statistical Institute, which amounted to 1,859.38 index points
(December 31, 2022: 1,128.45).

The transition effect as of January 1, 2022, amounted to €612
million (in foreign currency OCI), partially offset by a write-down in
accumulated retained earnings (-€381 million).

The amount shown for non-current securities relates primarily to
fixed-income securities.

Impairments on other financial assets amounted to €63 million
(2022: €30 million). Write-ups totaled €1 million (2022: €3
million). The carrying amount of other financial assets with
impairment losses was €42 million as of the end of the fiscal year
(2022: €30 million); the carrying amount of the other financial
assets written up amounts to €6 million (2022: €4 million).

Shares in Companies Accounted for under the Equity
Method

The carrying amounts of the immaterial associates accounted for
under the equity method totaled €1,569 million (2022: €1,445
million), and those of the joint ventures totaled €785 million
(2022: €1,015 million).

Investment income generated from companies accounted for
under the equity method amounted to €443 million in 2023
(2022: €441 million).

The following table provides an overview of material items in the
aggregated consolidated statements of comprehensive income of
the immaterial associates and joint ventures accounted for using
the equity method:

Summarized Financial Information for Individually Non-Material Associates and Joint Ventures Accounted for under the Equity Method
Total
2022
288
6
294

€ in millions
Proportional share of net income from continuing operations
Proportional share of other comprehensive income
Proportional share of total comprehensive income

Joint ventures
2022
140
1
141

Associates
2022
148
5
153

2023
211
40
251

2023
321
58
379

2023
110
18
128

The following tables summarize significant line items of the
aggregated statements of comprehensive income of the associates
and joint ventures that are accounted for under the equity method.
The material associates in the E.ON Group are RheinEnergie AG,
Dortmunder Energie- und Wasserversorgung GmbH and GASAG
Berliner Gaswerke AG. Prior-year data may differ from the data
published in the previous year due to subsequent findings.

173

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→ Notes

Material Associates—Balance Sheet Data as of December 31

€ in millions
Non-current assets1
Current assets
Current liabilities (including provisions)
Non-current liabilities (including provisions)
Equity
Non controlling interests
Ownership interest (in %)
Proportional share of equity
Consolidation adjustments
Carrying amount of equity investment
1Undisclosed accruals/provisions from acquisitions are recognized in assets.

Material Associates—Earnings Data

€ in millions
Sales
Net income/loss from continuing operations
Non-controlling interests in the net income/loss from continuing operations
Net income from discontinued operations
Dividend paid out to E.ON
Other comprehensive income
Total comprehensive income
Ownership interest (in %)
Proportional share of total comprehensive income after taxes
Proportional share of net income after taxes
Consolidation adjustments
Equity-method earnings

RheinEnergie AG
2022
3,011
771
560
1,513
1,709
–
20.00
342
174
516

2023
3,317
849
882
1,087
2,197
–
24.22
532
152
684

Dortmunder Energie- und
Wasserversorgung GmbH
2022
1,617
151
275
998
495
–
39.90
198
37
234

2023
1,557
194
312
827
612
–
39.90
244
53
297

GASAG Berliner Gaswerke AG
2022
2,050
652
749
1,154
799
5
36.85
293
109
401

2023
2,070
521
689
1,180
722
5
36.85
264
109
373

RheinEnergie AG
2022
3,631
71
–
–
28
19
90
20.00
18
14
8
22

2023
3,516
163
–
–
22
89
252
24.22
61
39
10
49

Dortmunder Energie- und
Wasserversorgung GmbH
2022
1,136
-19
–
–
13
30
11
39.90
4
-8
6
-2

2023
1,456
26
–
–
15
140
166
39.90
66
11
3
14

GASAG Berliner Gaswerke AG
2022
1,621
72
1
3
20
-199

2023
2,273
91
1
-5
18
-113

-27
36.85
-10
34
-3
31

-125
36.85
-46
27
1
29

174

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→ Notes

There are no further material restrictions apart from those
contained in standard legal and contractual provisions.

The Group adjustments shown in the tables mainly relate to
goodwill determined as part of initial recognition, temporary
differences, changes in ownership interests, exchange rate effects,
impairments recognized at group level and effects from the
elimination of intragroup profits.

Presented in the following tables are significant line items of the
aggregated balance sheets and of the aggregated income
statements of the joint ventures accounted for under the equity
method, Enerjisa Enerji A.Ş., Enerjisa Üretim Santralleri A.Ş.,
Westconnect GmbH and Západoslovenská energetika a.s. (ZSE).
Prior-year data may differ from the data published in the previous
year due to subsequent findings. The Group adjustments at
Enerjisa Üretim Santralleri A.Ş. are mainly the result of
impairments recognized at the Group level in the reporting period
and the previous year, respectively.

The material associates and the material joint ventures are active
in diverse areas of the gas and electricity industries as well as
telecommunications. Disclosures of company names, registered
offices and equity interests as required by IFRS 12 for material
joint arrangements and associates can be found in the list of
shareholdings pursuant to Section 313 (2) HGB (see Note 38).

As of December 31, 2023, the investment in Enerjisa Enerji A.Ş. is
marketable. The pro rata market value amounted to €659 million
as of December 31, 2023 (2022: €853 million). The carrying
amount is €659 million as of December 31, 2023. The free float in
the company totals 20 percent, with E.ON and Haci Ömer Sabanci
Holding A.Ş. holding half of the remaining shares; from E.ON’s
perspective, Enerjisa Enerji A.Ş. is therefore a joint venture.

Of investments in companies accounted for under the equity
method, the shareholdings in companies with a carrying amount of
€709 million (2022: €702 million) are restricted because they
were pledged as collateral for financing as of the balance sheet
date.

175

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Material Joint Ventures—Balance Sheet Data as of December 31

€ in millions
Non-current assets
Current assets
Current liabilities (including provisions)
Non-current liabilities (including provisions)
Cash and cash equivalents
Current financial liabilities
Non-current financial liabilities
Equity
Ownership interest (in %)
Proportional share of equity
Consolidation adjustments
Carrying amount of equity investment

Material Joint Ventures—Earnings Data

€ in millions
Sales
Net income/loss from continuing operations
Write-downs
Interest income/expense
Income taxes
Dividend paid out to E.ON
Other comprehensive income
Total comprehensive income
Ownership interest (in %)
Proportional share of total comprehensive income after taxes
Proportional share of net income after taxes
Consolidation adjustments
Equity-method earnings

Westconnect GmbH
2022
548
70
67
161
34
–
17
390
50.00
195
507
702

2023
755
36
111
278
5
–
98
402
50.00
201
508
709

Westconnect GmbH
2022
12
-2

2023
80
-26

-42

-14
–
–
–
-26
50.00
-13

-13
–
-13

-6

-1
–
–
–
-2
50.00
-1

-1
–
-1

Enerjisa Enerji A.Ş.
2022
2,684
1,159
1,585
478
419
410
222
1,780
40.00
712
–
712

2023
2,784
1,328
1,492
911
138
622
427
1,710
40.00
684
-25
659

Enerjisa Enerji A.Ş.
2022
4,619
621
-89

2023
5,036
79
-100

-217

-23
52
-20
59
40.00
24
32
-25
7

-211
503
37
620
1,241
40.00
496
248
–
248

Enerjisa Üretim Santralleri A.Ş. Západoslovenská energetika a.s.
2022
1,184
491
820
516
48
744
507
339
49.00
166
164
330

2023
2,425
777
810
1,106
284
738
1,090
1,286
49.00
630
173
803

2023
2,309
902
376
305
251
139
289
2,530
50.00
1,265
-491
774

2022
2,276
734
580
342
261
161
317
2,089
50.00
1,044
-537
507

Enerjisa Üretim Santralleri A.Ş. Západoslovenská energetika a.s.
2022
1,618
126
-66

2023
1,858
248
-78

2023
1,462
531
-142

2022
3,266
462
-121

-109
319
63
774
1,305
50.00
653
266
-323

-57

-12

-5
93
2,066
2,528
50.00
1,264
231
-537

-306

-15

-82
36
2
250
49.00
123
122
5
127

-18

-41
43
1
127
49.00
62
62
-1
61

176

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(17) Inventories

(18) Receivables and Other Assets

The following table provides a breakdown of inventories as of the
dates indicated:

The following table lists receivables and other assets by remaining
time to maturity as of the dates indicated:

Inventories

Receivables and Other Assets

€ in millions
Raw materials and supplies
Goods purchased for resale
Work in progress and finished products
Total

December 31,
2022
618
1,140
446
2,204

2023
750
640
550
1,940

The cost of raw materials, goods purchased for resale and finished
products is primarily determined based on the average cost
method.

Write-downs totaled €97 million in 2023 (2022: €17 million).
Reversals of write-downs amounted to €16 million in 2023 (2022:
€13 million).

The change in inventories compared to December 31, 2022, is
mainly attributable to the significant decrease in stored gas
reserves.

No inventories have been pledged as collateral.

€ in millions
Receivables from finance leases1
Other financial receivables and financial assets
Financial receivables and other financial assets
Trade receivables
Receivables from derivative financial instruments
Contract assets
Other assets
Other operating assets
Trade receivables and other operating assets
Total
1See also note 33.

December 31, 2023
Non-current
223
856
1,079
–
2,621
15
303
911
3,850
4,929

Current
29
1,056
1,085
10,404
5,364
34
120
3,083
19,005
20,090

December 31, 2022
Non-current
233
801
1,034
–
8,240
28
161
857
9,286
10,320

Current
33
1,786
1,819
10,422
22,506
29
142
3,348
36,447
38,266

As of the reporting date, other financial assets include receivables
from interests in jointly owned power plants of €65 million (2022:
€84 million).

Receivables within the scope of IFRS 15 mainly comprise trade
receivables. Value adjustments recognized in profit or loss on
receivables within the scope of IFRS 15 totaled -€1.0 billion in
2023 (2022: -€0.7 billion).

Receivables from derivative financial instruments amounted to
€7,985 million at the balance sheet date (2022: €30,746 million).
Of this amount, €6,709 million (2022: €29,230 million) is
attributable to forward commodity contracts. The decrease is
primarily due to price developments on the commodity markets
during the course of the year.

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The following table presents the changes in other assets under
IFRS 15:

the tight budgetary situation, however, it cannot be ruled out that
the legislator will use its discretionary powers in a pro-fiscal
manner.

Other Assets
€ in millions
Amortization and impairment
Balance as of December 31

2023
251
423

2022
273
304

(19) Liquid Funds

The following table shows the opening and closing balances of
contractual assets within the meaning of IFRS 15:

The following table provides a breakdown of liquid funds by
original maturity as of the dates indicated:

Liquid Funds

Contract Assets
€ in millions
Balance as of January 1
Balance as of December 31

2023
57
49

2022
32
57

€ in millions
Securities and fixed-term deposits

Current securities with an original maturity
greater than 3 months

Restricted liquid funds
Cash and cash equivalents

thereof subject to an only contractual
restriction

Total

December 31,
2022
1,600

1,600
452
7,324

351
9,376

2023
1,375

1,375
452
5,585

33
7,412

In addition, the E.ON Group had contingent assets in the amount of
about €0.3 billion as of December 31, 2023 (2022: €23 million)
due to pending legal proceedings.

The Federal Constitutional Court declared in Case No. 2 BvL 29/14
that section 36(6a) of the Corporate Tax Act (Körperschaft-
steuergesetz – KStG) as amended by the Tax Act 2010
(Jahressteuergesetz 2010) is incompatible with the Basic Law.
Based on this court order, the provision may result in an unjustified
loss of potential to reduce a company’s corporate tax that could
have been realized at the time of the transition from the
“imputation system” (Anrechnungsverfahren) to the “half-income
system” (Halbeinkünfteverfahren). In accordance with the decision
of the Federal Constitutional Court, the legislator was required to
remedy the violation of constitutional law by December 31, 2023,
with retroactive effect. However, the legislator has not yet taken
any action in this respect. Therefore, it is not currently clear how
the legislator will structure the new regulation. Depending on how
the new legislation is enacted, this could potentially result in a tax
refund for E.ON SE in the future of up to a low, three-digit million
euro amount in the context of ongoing appeal proceedings. Due to

Cash and cash equivalents include €5,096 million (2022: €6,001
million) in cash, checks, cash on hand and balances at financial
institutions with an original maturity of less than three months.
Cash and cash equivalents also include, in particular, money
market funds in the amount of €358 million (2022: €1,200
million) which meet the definition of cash and cash equivalents.
Cash and cash equivalents in the amount of €33 million (2022:
€351 million) which are subject to an only contractual restriction
comprise mainly advance payments in connection with
government intervention measures.

(20) Capital Stock

The capital stock is subdivided into 2,641,318,800 registered
shares with no par value (no-par-value shares) and amounts to
€2,641,318,800 (2022: €2,641,318,800). The capital stock of the
Company was provided by way of conversion of E.ON AG into a
European Company (SE) and through a capital increase carried out
on March 20, 2017, partially using the Authorized Capital 2012,
which expired on May 2, 2017, and through a capital increase
entered in the commercial register of the Company on September
19, 2019, making extensive use of the Authorized Capital 2017.

Pursuant to a resolution by the Annual Shareholders Meeting of
May 28, 2020, the Management Board is authorized to purchase
own shares until May 27, 2025. The shares purchased, combined
with other treasury shares in the possession of the Company, or
attributable to the Company pursuant to Sections 71a et seq.
AktG, may at no time exceed 10 percent of its capital stock. The
Management Board was authorized at the aforementioned Annual
Shareholders Meeting to cancel any shares thus acquired without
requiring a separate shareholder resolution for the cancellation or
its implementation. The total number of outstanding shares as of
December 31, 2023, was 2,611,658,485 (December 31, 2022:
2,610,379,492). As of December 31, 2023, E.ON SE held a total of
29,660,315 treasury shares (December 31, 2022: 30,939,308)
having a book value of €1,042 million (equivalent to approximately
1.12 percent or €29,660,315 of the capital stock).

The Company has further been authorized by the Annual
Shareholders Meeting of May 28, 2020, to buy shares using
derivatives (put or call options, or a combination of both). When
derivatives in the form of put or call options, or a combination of
both, are used to acquire shares, the option transactions must be
conducted with a financial institution or a company operating in
accordance with Section 53 (1) sentence 1 or Section 53b (1)
sentence 1 or (7) of the German Banking Act (KWG) or at market
terms on the stock exchange. No shares were acquired in the
reporting year using this purchase model.

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In 2023, employees of German E.ON Group companies had the
opportunity to purchase E.ON shares at favorable conditions under
a voluntary employee stock purchase program. The employees
received a grant of €360 on the shares subscribed by them in the
period from September 1 to September 30, 2023. The applicable
issue price of the E.ON share was €11,500. A total of 1,278,993
shares, or 0.05 percent of the share capital of E.ON SE, were used
and issued to employees with a weighted-average purchase price
of €19.59 per share.

No scrip dividend was offered in the 2023 fiscal year.

Authorized Capital

By shareholder resolution adopted at the Annual Shareholders
Meeting of May 28, 2020, the Management Board was authorized,
subject to the Supervisory Board’s approval, to increase until May
27, 2025, the Company’s capital stock by a total of up to
€528,000,000 through one or more issuances of new registered
no-par-value shares against contributions in cash and/or in kind
(authorized capital pursuant to Sections 202 et seq. AktG,
Authorized Capital 2020).

Subject to the Supervisory Board’s approval, the Management
Board is authorized to exclude shareholders’ subscription rights.

Conditional Capital

At the Annual Shareholders Meeting of May 28, 2020,
shareholders approved a conditional increase of the capital stock
(with the option to exclude shareholders’ subscription rights) in the
amount of up to €264 million (Conditional Capital 2020).

The conditional capital increase will be used to grant registered no-
par-value shares to the holders of convertible bonds or bonds with
warrants, profit participation rights or income bonds (or
combinations of these instruments), in each case with option
rights, conversion rights, option obligations and/or conversion
obligations, which are issued by the Company or a Group company
of the Company as defined by Section 18 of the German Stock
Corporation Act (AktG), under the authorization approved by the
Annual Shareholders Meeting on May 28, 2020, under agenda
item 8, through May 27, 2025. The new shares will be issued at
the conversion or option price to be determined in accordance with
the authorization resolution.

The conditional capital increase will be implemented only to the
extent required to fulfill the obligations arising on the exercise by
holders of option or conversion rights, and those arising from
compliance with the mandatory conversion of bonds with
conversion or option rights, profit participation rights or profit
participating bonds that have been issued or guaranteed by E.ON
SE or a Group company of E.ON SE as defined by Section 18 AktG
under the authorization approved by the Annual Shareholders
Meeting of May 28, 2020, under agenda item 8, and to the extent
that no cash settlement has been granted in lieu of conversion or
exercise of an option or the Company exercises its right to grant
shares in the Company in whole or in part in lieu of payment of the
cash amount due.

The Conditional Capital 2020 was not used.

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Voting Rights
The following notices pursuant to Section 33 (1) of the German
Securities Trading Act (“WpHG”) concerning changes in voting
rights have been received:

Information on Stockholders of E.ON SE

The Capital Group Companies Inc., Los Angeles, USA
BlackRock Inc., New York, USA
DWS Investment GmbH, Frankfurt am Main, Germany
RWE Aktiengesellschaft, Essen, Germany3
Canada Pension Plan Investment Board, Toronto, Canada
1Includes voting rights pursuant to Secs. 33, 34 and instruments pursuant to Sec. 38 (1) No. 1 and 2 WpHG.
2Includes voting rights pursuant to Secs. 33, 34 and instruments pursuant to Sec. 38 (1) No. 2 WpHG.
3Name of shareholder holding 3.0 percent or more of the voting rights notification received: GBV Zweiunddreißigste Gesellschaft für Beteiligungsverwaltung mbH.

Threshold
3%
5%
3%
15%
5%

Achieved, over or under threshold
Over
Under
Over
Achieved
Over

Date of notice
Nov. 30, 2021
Nov. 30, 20231
Jan. 15, 2021
Dec. 10, 2020
Jun. 9, 2020

Gained voting rights on
Nov. 29, 2021
Nov. 27, 2023
Jan. 12, 2021
Dec. 8, 2020
Jun. 5, 2020

Voting rights

Allocation
indirect
indirect
indirect
indirect
direct/indirect

Percentages
3.02
4.96
3.02
15.00
5.02

Absolute
79,693,259
131,004,3291
79,741,4422
396,197,820
132,657,9362

180

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(21) Additional Paid-in Capital

Additional paid-in capital decreased by €11 million to €13,327
million in 2023 (2022: €13,338 million). The reduction in
additional paid-in capital is attributable to the issue of employee
shares to eligible employees of the E.ON Group.

(22) Retained Earnings

The following table breaks down the E.ON Group’s retained
earnings as of the dates indicated:

Retained Earnings

€ in millions
Legal reserves
Other retained earnings
Total

December 31,
2022
45
3,172
3,217

2023
45
1,446
1,491

As of December 31, 2023, these IFRS retained earnings totaled
€1,491 million (2022: €3,217 million). The total change of
-€1,726 million is primarily due to E.ON SE’s distribution to
shareholders. In addition, actuarial losses from pensions led to a
change in retained earnings. This was partially offset by the
positive consolidated net income.

Under German securities law, E.ON SE shareholders may receive
distributions from E.ON SE’s income available for distribution in
accordance with the German Commercial Code (German GAAP).

As of December 31, 2023, these German-GAAP retained earnings
totaled €3,294 million (2022: €2,630 million). Of this amount,
legal reserves of €45 million (2022: €45 million) are restricted
pursuant to Section 150 (3) and (4) AktG. The increase in retained
earnings is due to the transfer of €650 million to the revenue
reserve from the current result, as well as the sale of treasury
shares under the employee stock purchase program in 2023. In
addition, amounts of €102.9 million (2022: €117.6 million) are
restricted from distribution under German commercial law as a
result of the surplus of plan assets and the difference between the
recognition of provisions for retirement benefit obligations based
on the corresponding average market interest rate over the past
ten fiscal years and the recognition of these provisions based on
the corresponding average market interest rate over the past
seven fiscal years. The dividend-restricted amounts are fully
covered by a sufficient amount of available reserves.

The amount of retained earnings available for distribution is
€3,146 million (2022: €2,467 million).

A proposal to distribute a cash dividend for 2023 of €0.53 per
share will be submitted to the Annual Shareholders Meeting. For
2022, shareholders at the May 17, 2023, the Annual Shareholders
Meeting voted to distribute a dividend of €0.51 for each dividend-
paying ordinary share. Based on a €0.53 dividend, the total profit
distribution is €1,384 million (2022: €1,331 million).

(23) Changes in Other Comprehensive Income

The change in other comprehensive income is primarily the result
of exchange rate differences recognized on the balance sheet,
indexation effects from the application of IAS 29 (hyperinflationary
accounting) in Turkey, and the recognition of actuarial gains and
losses.

The table below illustrates the share of OCI attributable to
companies accounted for under the equity method.

Share of OCI Attributable to Companies Accounted for under the
Equity Method
€ in millions
Balance as of December 31 (before taxes)
Taxes
Balance as of December 31 (after taxes)

2023
-412
–
-412

2022
-889
–
-889

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(24) Non-Controlling Interests

The table below illustrates the share of OCI that is attributable to
non-controlling interests:

Non-controlling interests by segment as of the dates indicated are
shown in the following table:

Share of OCI Attributable to Non-Controlling Interests

Non-Controlling Interests

€ in millions
Energy Networks
Germany
Sweden
ECE/Turkey
Customer Solutions
Germany
UK
The Netherlands
Other

Corporate Functions/Other
E.ON Group

€ in millions
Balance as of January 1, 2022
Changes
Balance as of December 31, 2022
Changes
Balance as of December 31, 2023

December 31,
2022
5,109
4,460
–
649
569
366
2
–
201
266
5,944

2023
4,977
4,578
–
399
621
351
2
–
268
258
5,856

Cash flow
hedges
–
1
1
-1
–

Available-for-
sale
securities
–
-27
-27
15
-11

Currency
translation
adjustments
-202
-21
-222
12
-210

Remeasure-
ments of
defined
benefit plans
-201
430
229
-139
90

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In compliance with IFRS 12, the following tables include
subsidiaries with significant non-controlling interests and provide
an overview of significant items on the aggregated balance sheet
and on the aggregated income statement, and significant cash
flow items. The list of shareholdings pursuant to Section 313 (2)
HGB (see Note 38) contains information on the registered office of
the company and disclosures on equity interests.

Subsidiaries with Material Non-Controlling Interests—Balance Sheet Data as of December 31

€ in millions
Non-controlling interests in equity
Non-controlling interests in equity (in %)2
Dividends paid out to non-controlling interests
Operating cash flow
Non-current assets
Current assets
Non-current liabilities
Current liabilities
1Holding companies without operational business.
2Calculated share ratio.

Subsidiaries with Material Non-Controlling Interests—Earnings Data

€ in millions
Share of earnings attributable to non-controlling interests
Sales
Net income/loss
Comprehensive income
1Holding companies without operational business.

There are no major restrictions beyond those under customary
corporate or contractual provisions. The amount of €80 million
(2022: €301 million) was reclassified from non-controlling
interests to liabilities in connection with guaranteed dividends.

Schleswig-Holstein Netz AG
2022
545
31
–
447
1,918
182
477
610

2023
581
31
–
295
2,080
371
577
812

envia
Mitteldeutsche Energie AG
2022
1,249
42
80
138
3,573
571
509
715

2023
1,156
42
68
135
3,719
710
842
823

2023
564
33
30
-11
1,826
226
6
302

E.DIS AG1
2022
542
33
30
-18
1,811
86
4
212

2023
538
39
50
-44
2,175
433
729
295

Avacon AG1
2022
505
39
50
-42
1,936
123
45
536

Schleswig-Holstein Netz AG
2022
65
1,143
116
116

2023
61
1,294
112
112

envia
Mitteldeutsche Energie AG
2022
28
340
80
80

2023
-17
349
39
39

2023
52
4
153
153

E.DIS AG1
2022
39
5
123
123

2023
84
13
239
239

Avacon AG1
2022
30
12
100
100

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(25) Provisions for Pensions and Similar Obligations

Description of the Benefit Plans

The retirement benefit obligations toward the active and former
employees of the E.ON Group, which amounted to €21.7 billion,
were covered by plan assets having a fair value of €17.3 billion as
of December 31, 2023. This corresponds to a funded status of 80
percent.

Provisions for Pensions and Similar Obligations

€ in millions
Present value of all defined benefit
obligations
Germany
United Kingdom
Other countries
Total
Fair value of plan assets
Germany
United Kingdom
Other countries
Total
Net defined benefit liability/asset (-)
Germany
United Kingdom
Other countries
Total

Presented as operating receivables
Presented as provisions for pensions and
similar obligations

December 31,
2022

2023

17,811
3,858
41
21,710

13,347
3,914
8
17,269

4,464
-56
33
4,441
-544

4,985

16,028
3,832
37
19,897

12,863
3,915
9
16,787

3,165
-83
28
3,110
-625

3,735

In addition to their entitlements under government retirement
systems and the income from private retirement planning, most
active and former E.ON Group employees are also covered by
occupational benefit plans. Both defined benefit plans and defined
contribution plans are in place at E.ON. Benefits under defined
benefit plans are generally paid upon reaching retirement age, or in
the event of disability or death.

E.ON regularly reviews the pension plans in place within the Group
for financial risks. Typical risk factors for defined benefit plans are
longevity and changes in nominal interest rates, as well as inflation
developments and rising wages and salaries.

The features and risks of defined benefit plans are shaped by the
general legal, tax and regulatory conditions prevailing in the
respective country. The configurations of the major defined benefit
and defined contribution plans within the E.ON Group are
described in the following discussion.

Germany
Active employees at the German Group companies are covered by
both cash balance plans and pension plans based on final salary.
Pension plans based on final salary are closed to new hires. All new
hires will receive cash balance plans in accordance with a capital or
pension module system, which, depending on the pension plan,
can provide for alternative payout options of a prorated single
payment and payments of installments in addition to the payment
of a regular pension. The cash balance plans used different interest
rules until December 31, 2021. Depending on the underlying
pension plan, either interest rates adjusted to market
developments with a fixed lower limit or guaranteed interest rates
were used to determine the capital or pension modules. The
majority of pension commitments still with a fixed guaranteed
interest rate were modified as of January 1, 2022, in that the
pension modules acquired from January 1, 2022, onwards now
also bear interest at a rate adjusted to market developments and

protected by a fixed lower limit. The benefit expense for the cash
balance plans is determined at different percentage rates based on
the ratio between compensation and the contribution limit in the
statutory retirement pension system in Germany. Employees can
additionally choose to defer compensation.

Future pension adjustments are either guaranteed at 1 percent per
annum or largely track the development of the inflation rate,
usually in a three-year cycle.

To fund the pension plans for the German Group companies, plan
assets were established. The major part of these plan assets is
administered in the form of Contractual Trust Arrangements
(“CTAs”) in accordance with specified investment principles. There
are additional plan assets available through the implementation
channels of the pension fund (“Pensionsfonds”) and smaller
German pension vehicles (“Pensions- und Unterstützungskassen”).
Only the pension fund and the “Pensionskassen” vehicles are
subject to regulatory provisions in relation to the investment of
capital and funding requirements.

United Kingdom
In the United Kingdom, there are various pension plans. In the past,
employees were covered by defined benefit plans, which for the
most part were final-pay plans and make up the majority of the
pension obligations currently reported for the United Kingdom.
Benefit payments to the beneficiaries are adjusted for inflation on
a limited basis. These pension plans were closed to new hires.
Since then, new hires are offered a defined contribution plan. Aside
from the payment of contributions, this plan entails no additional
risks for the employer.

Plan assets in the United Kingdom are administered by trustees in
independent special-purpose vehicles, most of which are separate
sections of the Electricity Supply Pension Scheme (ESPS). The
trustees are selected by the members of the plan or appointed by
the entity. In that capacity, the trustees are particularly responsible
for the investment of the plan assets.

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The Pensions Regulator in the United Kingdom requires that a so-
called “technical valuation” of the plan’s funding status be
performed every three years. The actuarial assumptions
underlying the valuation are agreed upon by the trustees and E.ON
UK plc. They include presumed life expectancy, wage and salary
growth rates, investment returns, inflationary assumptions and
interest rate levels.

The last technical valuation for the E.ON UK Section took place on
the reporting date of March 31, 2021, and no technical funding
deficit was identified. The most recent completed technical
valuation carried out for the Npower section was completed as of
March 31, 2022, and there was also no technical financing deficit
identified.

Other Countries
The remaining pension obligations are divided between the
Netherlands, Luxembourg, Sweden, Italy, Poland, Romania, the
Czech Republic and the USA.

The defined benefit plan in the Netherlands consists of
commitments made by various employers within the framework of
a sector-specific fund and does not permit a pro rata allocation of
the obligations, plan assets and service cost. The E.ON Group
accordingly accounts for this obligation as a defined contribution
plan. There are no minimum funding requirements in this respect.
Benefits may be reduced or contributions increased if there is
insufficient funding.

From the perspective of the Group, however, the benefit plans are
relatively insignificant in the above-mentioned countries.

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Description of the Benefit Obligations

The following table shows the changes in the present value of the
defined benefit obligations for the periods indicated:

Changes in the Defined Benefit Obligations

€ in millions

Employer service cost
Past service cost
Gains (-) and losses (+) on settlements
Interest cost on the present value of the defined benefit obligations
Remeasurements

Actuarial gains (-)/losses (+) arising from changes in demographic assumptions
Actuarial gains (-)/losses (+) arising from changes in financial assumptions
Actuarial gains (-)/losses (+) arising from experience adjustments

Employee contributions
Benefit payments
Changes in scope of consolidation
Exchange rate differences
Other
Defined benefit obligations as of December 31

Total
19,897
164
16
1
778
1,856
-104
1,518
442
3
-1,101
20
79
-3
21,710

Germany
16,028
151
20
–
582
1,862
–
1,451
411
2
-853
21
–
-2
17,811

United
Kingdom
3,832
11
-4
1
194
-12
-104
63
29
1
-244
–
79
–
3,858

2023
Other
countries
37
2
–
–
2
6
–
4
2
–
-4

-1
–
-1
41

Total
28,902
309
7
-3
405
-8,410
-27
-8,811
428
3
-1,068
7
-243

-12
19,897

Germany
22,685
287
8
-3
246
-6,379
–
-6,739
360
2
-813
7
–
-12
16,028

United
Kingdom
6,175
20
2
–
158
-2,028
-27
-2,066
65
1
-252
–
-244
–
3,832

2022
Other
countries
42
2
-3
–
1
-3
–
-6
3
–
-3
–
1
–
37

The actuarial losses shown in the table for the development of the
present value of the defined benefit obligations are primarily
attributable to a decrease in the discount rates used.

The present value is attributable to retirees and their beneficiaries
in the amount of €13.5 billion (2022: €12.7 billion), to former
employees with vested entitlements in the amount of €2.8 billion
(2022: €2.4 billion) and to active employees in the amount of €5.4
billion (2022: €4.8 billion).

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→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

The actuarial assumptions used to measure the defined benefit
obligations and to compute the net periodic pension cost at E.ON’s
German and UK subsidiaries as of the respective balance sheet
date are as follows:

To measure the E.ON Group’s occupational pension obligations for
accounting purposes, the Company has employed the current
versions of the biometric tables recognized in each respective
country for the calculation of pension obligations:

Actuarial Assumptions

Actuarial Assumptions (Mortality Tables)

Percentages
Discount rate1
Germany
United Kingdom
Wage and salary growth
rate
Germany
United Kingdom2
Pension increase rate
Germany3
United Kingdom

2023

3.16
4.50

2022

3.71
4.80

December 31,
2021

Germany

United Kingdom

1.10
1.90

2018 G versions of the Heubeck biometric tables
(2018)

“S3” series base mortality tables with the CMI 2022
projection model for future improvements

2.95
2.10/2.50

2.75
2.20/2.70

2.35
2.20/3.20

Changes in the actuarial assumptions described previously would
lead to the following changes in the present value of the defined
benefit obligations:

2.20
2.90

2.00
3.10

1.60
3.10

Sensitivities

1The discount rates used to determine service cost were 3.59 percent (2022: 1.10 percent) in
Germany and 4.78 percent (2022: 1.90 percent) in the UK.
2Different salary growth rates due to different benefit plans (E.ON: 2.10 percent (2022: 2.20
percent); Npower: 2.50 percent (2022: 2.70 percent)).
3The pension increase rate for Germany applies to eligible individuals not subject to an agreed
guarantee adjustment.

The IAS 19 discount rates for the EUR and GBP currency areas are
determined on the basis of the single equivalent discount rate
method. The full yield curve is used to determine the present value
of the defined benefit obligations, and the IAS 19 discount rate
disclosed is determined retrospectively as the discount rate that
leads to the identical present value of the defined benefit
obligations when applied uniformly. The yield curve “RATE:Link”
from provider WTW is used to determine the present value.

Change in the discount rate by (basis points)

Change in percent

Change in the wage and salary growth rate by (basis points)

Change in percent

Change in the pension increase rate by (basis points)

Change in percent

Change in mortality by (percent)

Change in percent

Change in the present value of the defined benefit obligations
December 31, 2022
-50
+ 50
6.88
-6.15

December 31, 2023
-50
+ 50
7.09
-6.30
-25
-0.25

+ 25
0.26
+ 25
1.88
+ 10
-2.11

-25
-1.77

-10
2.36

+ 25
0.28

+ 25
1.86

+ 10
-2.05

-25
-0.28

-25
-1.78

-10
2.28

The sensitivities indicated are computed based on the same
methods and assumptions used to determine the present value of
the defined benefit obligations. If one of the actuarial assumptions
is changed for the purpose of computing the sensitivity of results
to changes in that assumption, all other actuarial assumptions are
included in the computation unchanged.

When considering sensitivities, it must be noted that the change in
the present value of the defined benefit obligations resulting from
changing multiple actuarial assumptions simultaneously is not
necessarily equivalent to the cumulative effect of the individual
sensitivities.

187

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Description of Plan Assets and the Investment Policy

The defined benefit plans are funded by plan assets held in
specially created pension vehicles that legally are distinct from the
Company. The fair value of these plan assets changed as follows:

Changes in the Fair Value of Plan Assets

€ in millions
Fair value of plan assets as of January 1
Interest income on plan assets
Remeasurements

Return on plan assets recognized in equity, not including amounts contained in the interest income on plan assets

Employee contributions
Employer contributions
Benefit payments
Changes in scope of consolidation
Exchange rate differences
Other
Fair value of plan assets as of December 31

The plan assets include virtually no owner-occupied real estate or
equity and debt instruments issued by E.ON Group companies.
Each of the individual plan asset components has been allocated to
an asset class based on its substance.

Total
16,787
664
429
429
3
339
-1,041
6
81
1
17,269

Germany
12,863
465
491
491
2
314
-796
6
–
2
13,347

United
Kingdom
3,915
199
-62
-62
1
25
-244
–
81
-1
3,914

2023
Other
countries
9
–
–
–
–
–
-1
–
–
–
8

Total
23,469
354
-5,984
-5,984
3
170
-971
–
-253

-1
16,787

Germany
16,879
185
-3,605
-3,605
2
122
-719
–
–
-1
12,863

United
Kingdom
6,581
169
-2,379
-2,379
1
48
-252
–
-253
–
3,915

2022
Other
countries
9
–
–
–
–
–
–
–
–
–
9

188

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The plan assets thus classified break down as shown in the
following table:

Classification of Plan Assets

Percentages
Plan assets listed in an active market
Equity securities (stocks)
Debt securities

thereof Government bonds
thereof Corporate bonds

Other investment funds
Total listed plan assets
Plan assets not listed in an active market
Equity securities not traded on an exchange
Debt securities
Real estate
Qualifying insurance policies
Cash and cash equivalents
Other
Total unlisted plan assets
Total

Total

Germany

December 31, 2023
Other
countries

United
Kingdom

Total

Germany

December 31, 2022
Other
countries

United
Kingdom

18
45
28
17
7
70

6
1
11
2
3
7
30
100

21
43
22
21
–
64

6
1
14
2
3
10
36
100

8
52
47
5
30
90

6
–
–
1
1
2
10
100

–
–
–
–
–
–

–
–
–
100
–
–
100
100

19
37
20
17
10
66

6
2
13
2
2
9
34
100

25
33
14
19
1
59

6
3
17
2
2
11
41
100

3
48
37
11
37
88

8
–
–
–
1
3
12
100

–
–
–
–
–
–

–
–
–
100
–
–
100
100

The fundamental investment objective for the plan assets is to
provide full coverage of benefit obligations at all times for the
payments due under the corresponding benefit plans. This
investment policy stems from the corresponding governance
guidelines of the Group. An increase in the net defined benefit
liability or a deterioration in the funded status following an
unfavorable development in plan assets or in the present value of
the defined benefit obligations is identified in these guidelines as a
risk. E.ON therefore regularly reviews the development of the
funded status in order to monitor this risk.

To implement the investment objective, the E.ON Group primarily
pursues an investment approach that takes into account the
structure of the benefit obligations. This long-term investment

strategy seeks to manage the funded status, with the result that
any changes in the defined benefit obligations, especially those
caused by fluctuating inflation and interest rates are, to a certain
degree, offset by simultaneous corresponding changes in the fair
value of plan assets. The investment strategy may also involve the
use of derivatives (for example, interest rate swaps and inflation
swaps, as well as currency hedging instruments) to facilitate the
control of specific risk factors of pension liabilities. In the table
above, derivatives have been allocated, based on their substance,
to the respective asset classes. In order to improve the funded
status of the E.ON Group as a whole, a portion of the plan assets
will also be invested in a diversified portfolio of asset classes that
are expected to provide for long-term returns in excess of those of
fixed-income investments and the discount rate.

The determination of the target portfolio structure for the
individual plan assets is based on regular asset-liability studies. In
these studies, the target portfolio structure is reviewed in a
comprehensive approach against the backdrop of existing
investment principles, the current funded status, the condition of
the capital markets and the structure of the benefit obligations,
and is adjusted as necessary. The parameters used in the studies
are additionally reviewed regularly, at least once each year. Asset
managers are tasked with implementing the target portfolio
structure. They are monitored for target achievement on a regular
basis.

189

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Description of the Pension Cost

The net periodic pension cost for defined benefit plans included in
the provisions for pensions and similar obligations and in operating
receivables is shown in the table below:

Net Periodic Pension Cost

€ in millions
Employer service cost
Past service cost
Gains (-) and losses (+) on settlements
Net interest on the net defined benefit liability/asset
Total

Total
164
16
1
114
295

Germany
151
20
–
117
288

United
Kingdom
11
-4
1
-5
3

2023
Other
countries
2
–
–
2
4

Total
309
7
-3
51
364

Germany
287
8
-3
61
353

United
Kingdom
20
2
–
-11
11

2022
Other
countries
2
-3
–
1
–

In addition to the total net periodic pension cost for defined benefit
plans, an amount of €104 million in contributions to external
insurers or similar institutions was paid in 2023 (2022: €96
million) for defined contribution plans.

Description of Contributions and Benefit Payments

Prospective benefit payments under the defined benefit plans
existing as of December 31, 2023, for the next ten years are
shown in the following table:

Contributions to state plans totaled €0.4 billion (2022: €0.4
billion).

Prospective Benefit Payments

For the following fiscal year, it is expected that employer
contributions to plan assets will amount to a total of €177 million.

The weighted-average duration of the defined benefit obligations
measured within the E.ON Group was 13.5 years as of December
31, 2023 (2022: 13.2 years).

€ in millions
2024
2025
2026
2027
2028
2029–2033
Total

Total
1,130
1,132
1,139
1,151
1,159
5,859
11,570

Germany
899
902
908
919
927
4,709
9,264

United
Kingdom
228
228
228
229
229
1,125
2,267

Other
countries
3
2
3
3
3
25
39

190

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Description of the Net Defined Benefit Liability

The recognized net liability from the E.ON Group’s defined benefit
plans results from the difference between the present value of the
defined benefit obligations and the fair value of plan assets:

Changes in the Net Defined Benefit Liability

€ in millions
Net liability as of January 1
Net periodic pension cost
Changes from remeasurements
Employer contributions to plan assets
Net benefit payments
Changes in scope of consolidation
Exchange rate differences
Other
Net liability as of December 31

thereof net liability
thereof net asset

Total
3,110
295
1,427
-339

-60
14
-2

-4
4,441
4,985
-544

Germany
3,165
288
1,371
-314

-57
15
–
-4
4,464
4,917
-453

United
Kingdom

-83
3
50
-25
–
–
-2
1
-56
33
-89

2023
Other
countries
28
4
6
–
-3

-1
–
-1
33
35
-2

Total
5,433
364
-2,426

-170

-97
7
10
-11
3,110
3,735
-625

Germany
5,806
353
-2,774

-122

-94
7
–
-11
3,165
3,675
-510

United
Kingdom

-406
11
351
-48
–
–
9
–
-83
31
-114

2022
Other
countries
33
–
-3
–
-3
–
1
–
28
29
-1

191

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(26) Miscellaneous Provisions

The following table lists the miscellaneous provisions as of the
dates indicated:

Miscellaneous Provisions

€ in millions
Nuclear-waste management obligations
Personnel obligations
Obligations from green certificates
Other asset retirement obligations
Supplier-related and customer-related obligations
Environmental remediation and similar obligations
Other
Total

The changes in the miscellaneous provisions are shown in the table
below:

Changes in Miscellaneous Provisions

The accretion expense resulting from the changes in provisions is
shown in the financial results (see Note 10). The provision items
are discounted in accordance with the maturities with interest
rates of between 1.8 and 7.3 percent.

December 31, 2023
Non-current
5,840
796
43
713
167
323
1,146
9,028

Current
713
465
812
109
976
79
1,712
4,866

December 31, 2022
Non-current
6,125
861
16
574
2,093
351
1,213
11,233

Current
678
451
850
68
1,862
84
1,535
5,528

January 1,
2023
6,803
1,312
866
642
3,955
435
2,748
16,761

Exchange rate
differences
–
–
17
–
7
1
15
40

Changes in
scope of
consolidation
–
5
–
–
1
–
25
31

Unwinding of
discounts
170
44
–
17
48
10
-47
242

Additions
–
395
1,285
20
892
99
1,104
3,795

Utilization

-686

-445

-1,301

-27

-1,594

-54

-706

-4,813

Reclassifi-
cations
–
14
-11
1
-1

-69
63
-3

Reversals
–
-64

-1
–
-2,165

-20

-344

-2,594

Changes in
estimates
266
–
–
169
–
–
–
435

December 31,
2023
6,553
1,261
855
822
1,143
402
2,858
13,894

192

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As of December 31, 2023, provisions for nuclear-waste
management obligations exclusively relate to Germany; other
provisions mainly relate to eurozone countries and the United
Kingdom.

The cost estimates used to determine the provision amounts are
based on studies and analyses performed by external specialists
and are updated annually, provided that the cost estimates are not
based on contractual agreements.

Excluding the effects of discounting and cost increases, the
amounts for disposal obligations would be €6,540 million with
average credit terms of approximately six years.

Provisions for Nuclear-Waste Management
Obligations

In the following, the provision items after deduction of advance
payments are classified based on technical criteria:

The provisions for nuclear-waste management obligations as of
December 31, 2023, in the amount of €6.6 billion exclusively
relate to nuclear power activities in Germany.

The provisions for nuclear waste management based on nuclear
power legislation comprise all those nuclear obligations relating to
the disposal of spent nuclear-fuel rods and low-level nuclear
waste and to the retirement and decommissioning of nuclear
power plant components that are determined on the basis of
external studies, external and internal cost estimates and
contractual agreements, as well as the supplementary provisions
of the German Act Transferring Responsibility for Nuclear Waste
Storage and the German Disposal Fund Act.

The asset retirement obligations recognized include the anticipated
costs of post- and residual operation of the facility, dismantling
costs, and the cost of removal and disposal of the nuclear
components of the nuclear power plant.

Provisions for the disposal of spent nuclear fuel rods also comprise
the contractual costs of the return of waste from reprocessing in
France and England to interim storage, as well as costs incurred
for expert handling, including the necessary interim storage
containers and transport to interim storage.

Nuclear Waste Management Obligations in Germany (Less
Advance Payments)

€ in millions
Retirement and decomissioning
Containers, transports, other
Total

December 31,
2022
6,327
476
6,803

2023
6,167
386
6,553

Provisions, if they are non-current, are measured at their
settlement amounts, discounted to the balance sheet date.

A risk-free discount rate of an average of about 2.0 percent is used
for the measurement of E.ON’s disposal obligations (previous year:
(2.5 percent). As in the prior year, E.ON assumes a 2 percent
increase in costs when estimating annual payments. A change in
the discount rate or in the cost increase rate of 0.1 percentage
points would change the amount of the provision recognized on
the balance sheet by approximately €40 million.

There were changes in estimates for the nuclear power business in
2023 in the amount of €266 million (2022: -€965 million). This
mainly includes the discounting effect in the amount of about
€200 million resulting from the decrease in interest rates, effects
from cost adjustments in the amount of €230 million and off-
setting effects from the optimization of decommissioning and
disposal services. €686 million (2022: €624 million) of this was
used, of which €592 million (2022: €562 million) related to
decommissioning nuclear power plants based on circumstances
for which decommissioning and dismantling costs were
capitalized.

Personnel Obligations

Provisions for personnel costs primarily cover provisions for early
retirement benefits, performance-based compensation
components, restructuring and other deferred personnel costs.
Restructuring provisions, which totaled €641 million at December
31, 2023 (2022: €766 million), were made especially in Germany
for various restructuring projects.

Obligations from Green Certificates

Renewables Obligation Certificates (ROCs or Green Certificates)
are an important mechanism for promoting renewable energies,
especially in the UK. The ROCs represent a fixed share of
Renewables in power sales and can be acquired either from
renewable sources or on the market. During a 12-month ROC
period, the obligations recognized as a provision for this purpose
are offset against the acquired certificates and used.

193

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Provisions for Other Asset Retirement Obligations

Other

The other miscellaneous provisions consist of certain
environmental remediation obligations from predecessor
companies in the amount of €0.3 billion (2022: €0.4 billion),
possible obligations from tax-related interest expense in the
amount of €0.1 billion (2022: €0.1 billion) and litigation cost risks
in the amount of €0.1 billion (2022: €0.1 billion).

The provisions for other asset retirement obligations consist of
obligations for renewable energy power plants and infrastructure.
In addition, the provisions for dismantling conventional plant
components in the nuclear power segment, which are based on
legally binding civil agreements and public provisions, in the
amount of €375 million (2022: €300 million) are taken into
account here. The change in this item is in addition to inflation-
related adjustments also due to the decrease in interest rates.
Excluding discounting and cost-increase effects, the amounts for
these disposal obligations with an average payment term of about
14 years would be €380 million.

The other asset retirement obligations disclosed under economic
net debt, not including the provisions for dismantling conventional
plant components in the nuclear power segment, amount to
€447 million.

Sales and Supplier-Related Obligations

Provisions for supplier-related obligations consist of provisions for
potential losses on open purchase contracts.

The main changes in the area of sales-related obligations result
from impending losses from pending sales contracts. There was a
reversal in the amount of €1.9 billion in connection with the lower
energy prices on the commodity markets. In addition €1.4 billion
was utilized. Provisions for sales market-oriented obligations
include provisions for risks of loss from pending sales agreements
in the amount of €0.1 billion (2022: €3.2 billion).

Environmental Remediation and Similar Obligations

Provisions for environmental remediation refer primarily to
redevelopment protection measures and the rehabilitation of
contaminated sites.

194

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(27) Liabilities

The following table provides a breakdown of liabilities:

Liabilities

€ in millions
Financial liabilities
Trade payables
Capital expenditure grants
Liabilities from derivatives
Advance payments
Contract liabilities (IFRS 15)
Contract liabilities
Trade payables and other operating liabilities
Total

December 31, 2023
Non-current
30,823
–
357
3,713
33
3,693
520
8,316
39,139

Current
4,617
11,580
395
8,727
358
699
5,638
27,397
32,014

December 31, 2022
Non-current
28,965
–
180
6,440 ¹
–
3,335
956
10,910
39,875

Current
5,186
14,360
265
21,569 ¹
614
763
4,576
42,147
47,333

195

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Financial Liabilities

The following tables present the changes to financial liabilities in
fiscal years 2023 and 2022:

Financial Liabilities

€ in millions
Bonds
Commercial paper
Bank loans/liabilities to banks
Lease obligations1
Other financial liabilities
Financial liabilities
1For more information see Note 33.

Financial Liabilities

€ in millions
Bonds
Commercial paper
Bank loans/liabilities to banks
Lease obligations1
Other financial liabilities
Financial liabilities
1For more information see Note 33.

Cash-effective

Non-cash-effective

Jan. 1, 2023
28,897
767
921
2,512
1,054
34,151

Cash flows
641
-553
643
-383

-594

-246

Exchange rate
differences
53
–
-4
8
2
59

Changes in
scope of
consolidation
–
–
109
–
8
117

Compounding
effect
22
–
–
–
–
22

Other Dec. 31, 2023
29,426
214
1,671
2,874
1,255
35,440

-187
–
2
737
785
1,337

Cash-effective

Non-cash-effective

Jan. 1, 2022
28,323
1,510
1,438
2,539
851
34,661

Cash flows
1,381
-743

-442

-355

-1,388

-1,547

Exchange rate
differences

-619
–
-1

-10
23
-607

Changes in
scope of
consolidation
–
–
-74
–
-22

-96

Compounding
effect
16
–
–
–
–
16

Other Dec. 31, 2022
28,897
767
921
2,512
1,054
34,151

-204
–
–
338
1,590
1,724

Liabilities to financial institutions include, among other items,
collateral received, measured at a fair value of €27 million (2022:
€86 million). This collateral relates to amounts pledged by banks
to limit the utilization of credit lines in connection with the fair
value measurement of derivative transactions. The other financial
liabilities include, inter alia, financial guarantees totaling €8 million
(2022: €8 million). Also included is collateral received in
connection with goods and services in the amount of €17 million
(2022: €24 million). E.ON can use this collateral without
restriction.

The financial liabilities of innogy recognized at the date of initial
consolidation were marked to market under IFRS. This market
value was considerably higher than the nominal value because
market interest rates had fallen since the bonds were issued. The
difference between the nominal value and the market value
calculated during the purchase price allocation totaled €1,496
million as of December 31, 2023 (as of December 31, 2022:
€1,668 million) and will be reversed over the term of each bond
and recognized as an expense in the financial result (see Note 10).
This difference is not taken into account in the economic net debt.

196

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The following is a description of the E.ON Group’s significant credit
arrangements and debt issuance programs.

Corporate Headquarters

recently renewed in March 2023, with a total amount of €35
billion. E.ON SE plans to renew the program in 2024.

€35 Billion Debt Issuance Program
A Debt Issuance Program simplifies the flexible issuance of debt
instruments through public and private placements to investors.
The Debt Issuance Program of E.ON SE was most

At year-end 2023, the following E.ON SE and E.ON International
Finance B.V. bonds were outstanding:

Major Bond Issues of E.ON SE and E.ON International Finance B.V.1

Issuer

E.ON International Finance B.V.

E.ON SE

E.ON International Finance B.V.

E.ON SE

E.ON International Finance B.V.

E.ON SE

E.ON International Finance B.V.

E.ON SE

E.ON International Finance B.V.

E.ON SE

Volume in the respective currency
EUR 800 million
EUR 500 million
EUR 750 million
EUR 750 million
EUR 750 million
EUR 750 million
EUR 500 million
EUR 500 million
EUR 750 million
EUR 1,000 million
EUR 850 million
EUR 800 million
EUR 500 million
EUR 600 million
EUR 600 million
EUR 750 million
EUR 750 million
EUR 1,000 million
EUR 750 million

Initial term
10 years
7 years
5 years
3 years
8 years
5.5 years
4 years
8 years
7 years
7.5 years
10 years
7 years
8 years
6 years
8 years
5.5 years
12 years
12 years
11 years

Repayment
Jan 2024
May 2024
Aug 2024
Jan 2025
Apr 2025
Oct 2025
Jan 2026
May 2026
Oct 2026
Sep 2027
Oct 2027
Jan. 2028
Feb 2028
Aug 2028
Dec 2028
Mar 2029
May 2029
Jul 2029
Feb 2030

Coupon
3.000%
0.875%
0.000%
0.875%
1.000%
1.000%
0.125%
1.625%
0.250%
0.375%
1.250%
3.500%
0.750%
2.875%
0.100%
3.750%
1.625%
1.500%
0.350%

1Listing: All bonds ≥ EUR 500 million are listed in Luxembourg with the exception of the Rule 144A/Regulation S USD bond, which is unlisted.

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Major Bond Issues of E.ON SE and E.ON International Finance B.V.1

Issuer

E.ON International Finance B.V.

E.ON SE

E.ON International Finance B.V.2

E.ON SE

E.ON International Finance B.V.

E.ON SE

E.ON International Finance B.V.

E.ON SE

E.ON International Finance B.V.

E.ON International Finance B.V.3

E.ON International Finance B.V.

Volume in the respective currency
GBP 760 million
EUR 500 million
EUR 750 million
EUR 500 million
EUR 500 million
GBP 975 million
EUR 750 million
EUR 600 million
EUR 750 million
GBP 600 million
EUR 800 million
EUR 1,000 million
GBP 900 million
USD 1,000 million
GBP 700 million
GBP 1,000 million

Initial term
28 years
11 years
9 years
11 years
12 years
30 years
11.5 years
30 years
10 years
22 years
13 years
12 years
30 years
30 years
30 years
30 years

Repayment
Jun 2030
Dec 2030
Mar 2031
Aug 2031
Nov 2031
Jun 2032
Oct 2032
Feb 2033
Aug. 2033
Jan 2034
Oct 2034
Jan. 2035
Oct 2037
Apr 2038
Jan. 2039
Jul 2039

Coupon
6.250%
0.750%
1.625%
0.875%
0.625%
6.375%
0.600%
5.750%
4.000%
4.750%
0.875%
3.875%
5.875%
6.650%
6.750%
6.125%

1Listing: All bonds ≥ EUR 500 million are listed in Luxembourg with the exception of the Rule 144A/Regulation S USD bond, which is unlisted.
2The volume of this issue was raised from originally GBP 850 million to GBP 975 million.
3Rule 144A/Regulation S bond.

Additionally outstanding as of December 31, 2023, were private
placements with a total volume of approximately €1.4 billion
(2022: €1.7 billion). As of December 31, 2023, there were
bilateral credit facilities in the amount of about €2.3 billion (2022:
€4.0 billion), with original maturities of up to 1.5 years. These
facilities were agreed with a share of E.ON’s core banking group
and were not drawn on during the reporting year.

€3.5 Billion Syndicated Revolving Credit Facility
Effective October 24, 2019, E.ON arranged a syndicated revolving
credit facility in the amount of €3.5 billion over an original term of
five years, with two extension options for one year each. After

both options are exercised, the term of the credit line will end on
October 24, 2026. The credit margin is linked, among other things,
to the development of certain ESG ratings, which gives E.ON
financial incentives to pursue a sustainable corporate strategy. The
ESG ratings are set by three prominent agencies: ISS ESG, MSCI
ESG Research, and Sustainalytics. The facility serves as the
Group’s reliable, long-term liquidity reserve, one purpose of which
is to function as a backup facility for the commercial paper
programs. The facility was granted by 21 banks, which make up
E.ON’s core banking group. The facility has not been drawn in the
reporting year.

€10 Billion and $10 Billion Commercial Paper Programs
The euro commercial paper program in the amount of €10 billion
allows E.ON SE to issue from time to time commercial paper with
maturities of up to two years less one day to investors. The US
commercial paper program in the amount of $10 billion allows
E.ON SE to issue from time to time commercial paper with
maturities of up to 366 days to investors. As of December 31,
2023, €44 million was outstanding under the euro commercial
paper program (2022: €364 million) and the equivalent of €170
million (prior year: €403 million) under the US commercial paper
program.

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The bonds issued by E.ON SE and E.ON International Finance B.V.
(guaranteed by E.ON SE) have the maturities presented in the table
below. Liabilities denominated in foreign currency include the
effects of economic hedges, and the amounts shown here may
therefore vary from the amounts presented on the balance sheet

Bonds Issued by E.ON SE and E.ON International Finance B.V.

€ in millions
December 31, 2023
December 31, 2022

Total
28,461
27,766

2023
–
2,649

2024
2,139
2,139

Due between
2026 and
2032
15,061
13,494

2025
2,408
2,408

Due after
2032
8,852
7,076

Financial Liabilities by Segment

The following table breaks down the financial liabilities by
segment:

Financial Liabilities by Segment as of December 311

€ in millions
Energy Networks
Germany
Sweden
ECE/Turkey
Customer Solutions
Germany Sales
UK
The Netherlands
Other

Corporate Functions/Other
E.ON Group

1Because of changes in segment reporting, the prior-year figure was adjusted accordingly.

2023
–
–
–
–
–
–
–
–
–
29,426
29,426

Bonds
2022
–
–
–
–
–
–
–
–
–
28,897
28,897

Commercial paper
2022
2023
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
767
214
767
214

Bank loans/Liabilities
to banks
2022
367
365
–
2
434
98
–
–
336
120
921

2023
905
454
–
451
737
76
–
1
660
29
1,671

Lease obligations
2022
2023
2,141
2,394
2,050
2,294
13
15
78
85
262
370
56
59
72
79
34
80
100
152
109
110
2,512
2,874

Other financial
liabilities
2022
643
642
1
–
117
27
17
3
70
294
1,054

2023
692
691
1
–
202
24
18
34
126
361
1,255

Financial liabilities
2022
2023
3,151
3,991
3,057
3,439
14
16
80
536
813
1,309
181
159
89
97
37
115
506
938
30,187
30,140
34,151
35,440

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→ Notes

Trade Payables and Other Operating Liabilities

Trade payables totaled €11,580 million as of December 31, 2023
(2022: €14,360 million).

Capital expenditure grants of €752 million (2022: €445 million)
have not yet been recognized as revenue. As in the prior year, the
majority of these were government grants, in particular for the
network business. The E.ON Group retains ownership of the
assets. The grants are non-refundable and are recognized in other
operating income over the period of the depreciable lives of the
related assets.

Derivative liabilities totaled €12,440 million as of December 31,
2023 (2022: €28,009 million). Of this amount, €10,832 million
(2022: €26,316 million) is attributable to forward commodity
contracts. The change compared with the previous year is mainly
due to the market valuation of commodity derivatives.

Contract liabilities under IFRS 15 in the amount of €4,392 million
(2022: €4,098 million) consist primarily of construction grants
that were paid by customers for the cost of new gas and electricity
connections in accordance with the generally binding terms
governing such new connections. These grants are customary in
the industry, generally non-refundable and recognized as revenue
in the amount of €314 million according to the useful lives of the
related assets (2022: €372 million).

Other operating liabilities consist primarily of other tax liabilities in
the amount of €950 million (2022: €1,019 million) and interest
payable in the amount of €441 million (2022: €369 million). This
item also includes other liabilities to our customers from
overpayments and refund claims of €1,765 million (2022: €902
million) and current personnel liabilities of €503 million (2022:
€458 million). Also included in other operating liabilities are
carryforwards of counterparty obligations to acquire additional
shares in already consolidated subsidiaries as well as non-
controlling interests in fully consolidated partnerships with legal

structures that give their shareholders a statutory right of
withdrawal combined with a compensation claim, in the amount of
€563 million (2022: €555 million).

(28) Contingent Liabilities and Other Financial
Obligations

As part of its business activities, E.ON is subject to contingent
liabilities and other financial obligations involving a variety of
underlying matters. These primarily include guarantees,
obligations from litigation and claims (as discussed in more detail
in Note 29), short- and long-term contractual, legal and other
obligations and commitments.

Contingent Liabilities

The contingent liabilities of the E.ON Group amounted to €0.3
billion as of December 31, 2023 (December 31, 2022: €0.3 billion)
and primarily include contingent liabilities in connection with
potential long-term environmental remediation measures and legal
disputes. This value represents the best estimate of the
expenditure required to settle the present obligation as of the
reporting date.

E.ON has also issued direct and indirect guarantees and surety
bonds to third parties in connection with its own operations or the
operations of affiliated companies, which may trigger payment
obligations based on the occurrence of certain events. These
instruments include both financial guarantees as well as
operational guarantees, which primarily secure contractual
obligations as well as benefit obligations for active and former
employees.

In addition, E.ON has entered into indemnification agreements,
which as a rule are incorporated in agreements concerning the
disposal of shareholdings and, above all, affect the customary

representations and warranties with relation to liability risks for
environmental damage and contingent tax risks. In some cases,
obligations are covered in the first instance by provisions of the
disposed companies before E.ON itself is required to make any
payments. Guarantees issued by companies that were later sold by
E.ON SE or its legal predecessors are usually included in the
respective final sales contracts in the form of indemnities.

Moreover, E.ON has commitments under which it assumes joint
and several liability arising from its interests in civil-law companies
(“GbR”), non-corporate commercial partnerships and consortia in
which it participates.

The guarantees of E.ON also include items related to the operation
of nuclear power plants. Under the German Nuclear Energy Act
(“Atomgesetz” or “AtG”) and the ordinance regulating the provision
for coverage under the Atomgesetz (“Atomrechtliche
Deckungsvorsorge-Verordnung” or “AtDeckV”) of April 27, 2002,
German nuclear power plant operators are required to provide
nuclear accident liability coverage of up to €2.5 billion per incident.

The coverage requirement is satisfied in part by a standardized
insurance facility in the amount of €255.6 million. The institution
Nuklear Haftpflicht Gesellschaft bürgerlichen Rechts (“Nuklear
Haftpflicht GbR”) now only covers costs between €0.5 million and
€15 million for claims related to officially ordered evacuation
measures. Group companies have agreed to place their
subsidiaries operating nuclear power plants in a position to
maintain a level of liquidity that will enable them at all times to
meet their obligations as members of the Nuklear Haftpflicht GbR,
in proportion to their shareholdings in nuclear power plants.

To provide liability coverage for the additional €2,244.4 million per
incident required by the above-mentioned amendments, E.ON
Energie AG (“E.ON Energie”) and the other parent companies of
German nuclear power plant operators reached a Solidarity
Agreement (“Solidarvereinbarung”) on July 11, July 27, August 21,
and August 28, 2001, extended by agreement dated March 25,

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April 18, April 28, and June 1, 2011, and with agreement of
November 17, November 29, December 2, and December 6, 2021.
If an accident occurs, the Solidarity Agreement calls for the nuclear
power plant operator liable for the damages to receive—after the
operator’s own resources and those of its parent companies are
exhausted—financing sufficient for the operator to meet its
financial obligations. Under the Solidarity Agreement, E.ON
Energie’s share of the liability coverage on December 31, 2023,
was 43.3 percent (prior year: 43.3 percent), plus an additional 5.0
percent charge for the administrative costs of processing damage
claims. The contract does not provide for a change in share for the
2023 calendar year. Sufficient liquidity has been provided for and
is included within the liquidity plan.

Furthermore, as of December 31, 2023, E.ON is continuing to
provide collateral in the amount of €454.2 million (2022: €700.8
million) for the former Group companies transferred to RWE which
are to be repaid or assumed by RWE Group companies. In the
course of the fiscal year 2023, €246.6 million of guarantees were
redeemed as part of the exchange process with RWE.

Other Financial Obligations

In addition to provisions and liabilities carried on the balance sheet
and to reported contingent liabilities, there also are other financial
obligations arising mainly from contracts entered into with third
parties, or on the basis of legal requirements.

As of December 31, 2023, purchase commitments for
investments in property, plant and equipment amounted to €2.9
billion (2022: €2.3 billion). Of these commitments, €2.4 billion are
due within one year (2022: €1.7 billion). €2.3 billion of the
purchase commitment at December 31, 2023 (2022: €2.0 billion)
relates to the segments Energy Networks Germany and Sweden.

purchase contracts amount to €6.7 billion on December 31, 2023
(2022: €11.3 billion), of which €5.0 billion (2022: €8.6 billion) is
due within one year. Financial obligations under fixed gas purchase
contracts amount to approximately €3.9 billion on December 31,
2023 (2022: €5.4 billion). Of this amount, €2.8 billion (2022: €4.5
billion) is due within one year. Additional fixed purchase
commitments as of December 31, 2023, amount to €0.8 billion
(2022: €0.7 billion). They essentially include long-term contractual
commitments to purchase heat and alternative fuels. Of these
commitments, €0.2 billion (2022: €0.2 billion) are due within one
year. There are also additional purchase commitments whose
amount is not fixed yet.

grid connections and the calculation of the grid fee. Official
regulations, approvals and changes in regulatory practice have
given rise to legal disputes. Of particular note here are effects in
connection with the regulatory treatment of capital costs, return
on equity and other key regulatory parameters. The national legal
framework conditions within Europe are subject to changes, some
of which have a significant impact on network operations. Owing
to a number of factors, including regulatory and legal decisions,
the regulatory framework has increased here. However, these
regulatory interventions are not restricted to the network area;
distribution activities in the customer solutions area have also
been affected by regulatory measures.

Other financial obligations exist only to an insignificant extent.
These include capital commitments in connection with joint
ventures, obligations concerning the acquisition of financial assets,
and obligations arising from capital measures.

The changes to the legal and regulatory framework can in some
cases also significantly impact subsidies and remuneration
practices in the area of Renewables, which in turn are the object of
regulatory or court proceedings.

(29) Litigation and Claims

A number of different court actions, governmental investigations
and proceedings, and other claims are currently pending or may be
instituted or asserted in the future against companies of the E.ON
Group. This in particular includes an increased number of legal
actions and proceedings relating to contract amendments and
price adjustments initiated in response to market upheavals and
the changed economic and geopolitical situation in the electricity,
gas and heat sectors (also as a consequence of the energy
transition and the energy crisis) and concerning price increases and
anticompetitive practices. The courts and authorities are also
subjecting competitive practices to stricter reviews. Where
appropriate, Group companies have recognized corresponding
contingent assets (see Note 18), provisions (see Note 26) or
contingent liabilities (see Note 28).

There are also legal disputes in connection with completed M&A
activities, in particular as a result of the acquisition of innogy SE.
With regard to the latter, all legal actions brought against the
European Commission’s merger control approval decision were
dismissed by the Court of First Instance of the European Union;
E.ON SE intervened on the side of the European Commission in
these proceedings.

(30) Supplemental Cash Flow Disclosures

Please refer to the detailed presentation in Note 5 for information
on the shares in AggerEnergie GmbH and other shares in
Západoslovenská energetika a.s. (“ZSE”) acquired in the framework
of swap transactions.

In the current fiscal year, E.ON made external payments for
additions to consolidated shareholdings and activities in the
amount of €14 million (2022: €0 million). Cash and cash
equivalents in the amount of €2 million were also acquired. The

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Additional contractual obligations in place at the E.ON Group as of
December 31, 2023, relate primarily to the purchase of electricity
and natural gas. Fixed financial obligations under electricity

In the Energy Networks segment, Group companies are involved in
proceedings for the award of concessions and in connection with

Consolidated Financial Statements

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network business Germany. A reduction in cash inflow from
disposals also affected cash provided by investment activities.
There was no transaction in the 2023 financial year comparable to
the sale of E.ON’s 50-percent stake in Westconnect in the prior
year.

Cash provided by financing activities of continuing operations of
-€1.8 billion was €1.3 billion above the prior-year figure of
-€3.1 billion. The net of the issuance and repayment of bonds,
commercial paper, and bank liabilities led to an improvement in
cash provided by financing activities. A net reduction in adverse
effects in conjunction with variation margins due to the settlement
of derivative transactions led to a further improvement in cash
provided by financing activities.

Supplemental Information on Cash Flows from Operating
Activities
€ in millions
Income taxes paid (less refunds)
Interest paid
Interest received
Dividends received

-1,203
348
571

2023
-716

2022
-594

-1,091
219
575

purchases also resulted in the acquisition of assets in the amount
of €34 million and liabilities in the amount of €21 million.

The total consideration received by E.ON in 2023 on the disposal
of consolidated equity interests and activities generated cash
inflows of €1 million (2022: €634 million). Cash and cash
equivalents disposed of amounted to €0 million (2022: €3 million).
The sale of the consolidated activities led to reductions of
€1 million (2022: €855 million) in assets and €1 million (2022:
€55 million) in provisions and liabilities.

Cash provided by operating activities of continuing operations
before interest and taxes of €7.2 billion was €4.3 billion below the
prior-year figure (€11.5 billion). This resulted in part from a decline
of €0.9 billion at Energy Networks, which is mainly attributable to
adverse changes in working capital at the network business in
Germany. In particular, back payments to energy feed-in
customers who had received insufficient instalment payments in
the previous year had a negative impact on operating cash flow in
the year under review. The remaining decline (a total of
-€3.4 billion) came from Customer Solutions and Corporate
Functions/Other and was likewise mainly due to negative changes
in working capital in the 2023 financial year that more than offset
the increase in cash-effective earnings. These negative changes in
working capital are mainly attributable to the timing difference
between customer instalment payments already received in 2022
and payments from government support measures and the related
cash outflows from commodity procurement in the year under
review. In addition, the closure of E.ON’s last nuclear power plant
in the 2023 financial year led to a further deterioration of cash
provided by operating activities relative to the prior year.

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(31) Derivative Financial Instruments and Hedging
Transactions

Fair Value Hedges

Strategy and Objectives

The Company’s policy generally permits the use of derivatives if
they are associated with underlying assets or liabilities, planned
transactions, or legally binding rights or obligations.

At the E.ON Group, hedge accounting in accordance with IFRS 9 is
employed primarily in connection with hedging long-term liabilities
and future financing via interest-rate derivatives and for hedging
long-term foreign currency receivables and payables via currency
derivatives. E.ON also hedges net investments in foreign
operations.

In the commodity sector, fluctuations in future cash flows from
procurement and sales transactions are economically hedged by
offsetting transactions. Hedge accounting was applied in individual
cases with regard to hedging electricity and gas price change risks.

To hedge currency risk, E.ON entered into hedging transactions in
the reporting year in pounds sterling at an average hedging rate of
£0.90/€ (2022: £0. 91/€) and in US dollars at an average hedging
rate of US$1.36/€ (2022: US$1.36/€). Hedging transactions were
concluded at an average interest rate of 2.80 percent (2022:
2.67 percent) to hedge the interest rate risk in the eurozone. To
hedge commodity price risk, E.ON entered into hedging
transactions with an average hedged price of €30/MWh for gas
and an average hedged price of €115/MWh for electricity.

Fair value hedges are used to protect against the risk from changes
in market values. Gains and losses on these hedges are generally
reported in that line item of the income statement which also
includes the respective hedged items.

Cash Flow Hedges

Cash flow hedges are used to protect against the risk arising from
variable cash flows. Interest rate swaps and cross-currency
interest rate swaps are the principal instruments used to limit
interest rate and currency risks. The purpose of these swaps is to

maintain the level of payments arising from long-term interest-
bearing receivables and liabilities denominated in foreign currency
and euros by using cash flow hedge accounting in the functional
currency of the respective E.ON company. Futures contracts are
concluded to reduce future cash flow fluctuations arising from
commodity transactions effected at variable spot prices. Cash flow
hedge accounting to hedge the risk of changes in commodity
prices (electricity and gas) was applied in individual cases in the
2023 fiscal year. The following table presents the carrying
amounts of the hedging instruments and the changes in the fair
values of the hedging instruments and hedged items by hedged
risk type:

Carrying Amounts of Hedging Instruments and Changes in Fair Value of Hedging Instruments and Hedged Items in
Connection with Cash Flow Hedges

Receivables from derivative
financial instruments
2022
2023
408
325
66
1

Carrying amount

Liabilities from derivative
financial instruments
2022
2023
107
165
465
327

Change in the fair value of the
designated portion of hedging
instruments
2022
100
816

2023
-141
72

–

-3

676

520

Change in the fair value of
hedged items
2022
-99

2023
140
7

-827

-676

€ in millions
Currency risk
Interest-rate risk
Commodity price change
risk

The total amount of ineffectiveness for cash flow hedges recorded
for the year ended December 31, 2023, produced income of
€6 million (2022: income of €3 million) resulting from exchange
rate hedging.

Gains and losses from the ineffective portions of cash flow hedges
are classified as other operating income or other operating
expenses.

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→ Notes

The development of OCI arising from cash flow hedges, broken
down by hedged risk type, is as follows:

Changes in OCI Arising from Cash Flow Hedges

€ in millions
Balance as of January 1, 2022
Unrealized changes—hedging reserve
Unrealized changes—reserve for hedging costs
Reclassification adjustments recognized in income
Change in scope of consolidation
Income taxes
Companies accounted for under the equity method
Balance as of December 31, 20221
Balance as of January 1, 2023
Unrealized changes—hedging reserve
Unrealized changes—reserve for hedging costs
Reclassification adjustments recognized in income
Change in scope of consolidation
Income taxes
Companies accounted for under the equity method
Balance as of December 31, 20231
1As of December 31, 2023, includes -€141 million (2022: €306 million) from terminated cash flow hedges.
2Of this amount, -€116 million (previous year -€23 million) relates to hedged cash flows that are no longer expected to occur.

Total

Currency risk

Interest-rate
risk

Commodity
price change
risk

-1,053
1,555
9
27²
–
-184

-62
292
292
-139
13
-549²
–
207
-51

-227

123
9
-21
–
–
–

-58
13
32
–
–
–
–

755
–
75
–
–
–

-77
–
-65
–
–
–
–

676
–
-27
–
–
–

-4
–
-516
–
–
–
–

The balance of the OCI arising from cash flow hedges as of
December 31, 2023, contains €0.4 billion relating to hedging of
interest-rate risk (2022: €0.3 billion).

Reclassifications recognized in income are generally reported in
that line item of the income statement which also includes the
respective hedged transaction.

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The nominal volume of the hedging instruments is presented in the
following table:

Nominal Values of Hedging Instruments in Connection with Cash Flow Hedges

€ in millions
Currency risk
Interest-rate risk
Commodity price change risk

Net Investment Hedges

The Company uses foreign currency forwards, foreign currency
swaps and foreign currency loans to protect the value of its net
investments in its foreign operations denominated in foreign
currency.

The carrying amount of the assets used as hedging instruments as
of December 31, 2023, was €2 million (2022: €104 million) and
the carrying amount of the liabilities used as hedging instruments
was €1,241 million (2022: €1,117 million). The fair values of the
designated portion of the hedging instruments changed by -€110
million in the reporting period (2022: +€304 million).

As in 2022, no ineffectiveness resulted from net investment
hedges in 2023.

< 1 year
158
1,000
52

1–5 years
290
1,500
9

Maturity
> 5 years
2,200
3,000
–

2023
2,648
5,500
61

Total
2022
3,267
6,250
–

The development of OCI arising from net investment hedges is as
follows:

Changes in OCI Arising from Net Investment Hedges
€ in millions
Balance as of January 1, 2022
Unrealized changes—hedging reserve
Unrealized changes—reserve for hedging costs
Reclassification adjustments recognized in income
Change in scope of consolidation
Income taxes
Balance as of December 31, 20221
Balance as of January 1, 2023
Unrealized changes—hedging reserve
Unrealized changes—reserve for hedging costs
Reclassification adjustments recognized in income
Change in scope of consolidation
Income taxes
Balance as of December 31, 20231

Currency risk
220
322
-18
–
–
-170
354
354
-113
2
–
–
23
266

1As of December 31, 2023, includes -€71 million (2022: -€71 million) from terminated net
investment hedges.

As a rule, reclassification adjustments recognized in income are
reported under other operating income and expenses. The nominal
volume of hedging instruments in net investment hedges
amounted to €4,613 million as of December 31, 2023 (2022:
€4,759 million). Since the currency risk of net investment hedges
is hedged through the ongoing rollover of the hedging instruments,
the majority are concluded with a remaining term of less than one
year.

Valuation of Derivative Instruments

The fair value of derivative financial instruments is sensitive to
movements in underlying market rates and other relevant
variables. The Company assesses and monitors the fair value of
derivative instruments on a periodic basis. The fair value to be
determined for each derivative instrument is the price that would
be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants on the
measurement date (exit price). E.ON also takes into account the
counterparty credit risk for both own credit risk (debt value
adjustment) and the risk of the corresponding counterparty (credit
value adjustment) when determining fair value. The fair values of
derivative instruments are calculated using common market
valuation methods with reference to available market data on the
measurement date.

The following is a summary of the methods and assumptions for
the valuation of utilized derivative financial instruments in the
Consolidated Financial Statements.

• Currency, electricity and gas forward contracts, swaps, and
emissions-related derivatives are valued separately at their
forward rates and prices as of the balance sheet date. Whenever
possible, forward rates and prices are based on market
quotations, with any applicable forward premiums and
discounts taken into consideration.

205

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→ Consolidated Balance Sheets

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→ Consolidated Statement of Changes in Equity

→ Notes

• Market prices for commodity options are valued using standard

• Exchange-traded futures and option contracts are valued

(32) Additional Disclosures on Financial Instruments

option pricing models commonly used in the market.

• The fair values of existing instruments to hedge interest risk are

determined by discounting future cash flows using market
interest rates over the remaining term of the instrument.
Discounted cash values are determined for interest rate,
currency and cross-currency interest rate swaps for each
individual transaction as of the balance sheet date. Interest
income and expenses are recognized in income at the date of
payment or accrual.

• Equity forwards are valued on the basis of the stock prices of the

underlying equities, taking into consideration any timing
components.

individually at daily settlement prices determined on the futures
markets that are published by their respective clearing houses.
Paid initial margins are disclosed under other assets. Variation
margins received or paid during the term of such contracts are
stated under other liabilities or other assets, respectively, unless
they are offset against the recognized market values of the
commodity derivatives, as the offsetting criteria of IAS 32.42
are met.

• Certain long-term energy contracts are valued with the aid of

valuation models that use internal data if market prices are not
available. A hypothetical 10 percent increase or decrease in
these internal valuation parameters as of the balance sheet date
would lead to a theoretical change in market values of
±€5 million.

The carrying amounts of the financial instruments, their grouping
into IFRS 9 measurement categories, their fair values and their
measurement sources by class are presented in the following
table:

206

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→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Carrying Amounts, Fair Values and Measurement Categories by Class within the Scope of IFRS 7 as of December 31, 2023

€ in millions
Equity investments
Financial receivables and other financial assets

Receivables from finance leases
Other financial receivables and financial assets

Carrying amounts
2,561
2,164
252
1,912

Trade receivables and other operating assets

Trade receivables
Derivatives with no hedging relationships
Derivatives with hedging relationships
Other operating assets

Securities and fixed-term deposits

Cash and cash equivalents

Restricted liquid funds
Assets held for sale

Total assets
Financial liabilities

Bonds
Commercial paper
Bank loans/liabilities to banks
Lease obligations
Other financial liabilities

Trade payables and other operating liabilities

Trade payables
Derivatives with no hedging relationships
Derivatives with hedging relationships
Liabilities related to IAS 322
Other operating liabilities

Liabilities associated with assets held for sale

22,855
10,404
7,657
328
4,466
2,552

5,585

452
–

36,169
35,440
29,426
214
1,671
2,874
1,255
35,714
11,580
10,704
1,736
563
11,131
–

Carrying amounts
within the scope of
IFRS 7
507
849
252
597
496
101
18,861
10,243
7,657
328
633
2,552
1,644
908
5,585
358
5,227
452
–
–
–
28,806
34,923
29,426
214
1,671
2,822
790
27,471
11,476
10,704
1,736
563
2,992
–
–
–
62,394

Measurement
categories
under IFRS 91
FVPL

Determined using
market prices
(Level 1)
71

Derived from active
market prices
(Level 2)
–

Determined by
valuation methods
(Level 3)
436

Fair value
507

n/a

AmC
FVPL

AmC
FVPL
n/a
AmC

FVPL
FVOCI
–
FVPL
AmC
AmC

AmC
FVPL

AmC
AmC
AmC
n/a
AmC

AmC
FVPL
n/a
AmC
AmC

AmC
FVPL

222
596
495
101

7,657
328
626
2,552
1,644
908

358

–
–

27,728
217
1,331
2,720
770

10,704
1,736
88
2,722

–
–

85
–

1
–
112
1,371
1,149
222

–

26,330
–
–

–

–
–
–
182

–

145
–

7,124
328
132
1,181
495
686

358

–

1,398
217
480

-8

10,154
1,736
–
1,335

–

265
101

532
–
382
–
–
–

–

–
–
851

778

550
–
88
1,205

–

Total liabilities
1FVPL: Fair Value through P&L; FVOCI: Fair Value through OCI; AmC: Amortized Cost. The measurement categories are described in detail in Note 1. The amounts determined using valuation techniques with unobservable inputs (Level 3 of the fair value hierarchy) correspond to the difference between the total fair
values of the two hierarchy levels listed.
2The liabilities from put options include counterparty obligations and non-controlling interests in fully consolidated partnerships (see Note 27).

71,154

207

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→ Consolidated Statement of Changes in Equity

→ Notes

The carrying amounts of cash and cash equivalents and of trade
receivables and trade payables are considered reasonable
estimates of their fair values because of their short maturity.

Where the fair value of a financial instrument can be derived from
an active market without the need for an adjustment, that value is
used as the fair value. This applies in particular to equities held and
to bonds held and issued.

208

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→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Carrying Amounts, Fair Values and Measurement Categories by Class within the Scope of IFRS 7 as of December 31, 2022

€ in millions
Equity investments
Financial receivables and other financial assets

Receivables from finance leases
Other financial receivables and financial assets

Carrying amounts
2,191
2,853
266
2,587

Trade receivables and other operating assets

Trade receivables
Derivatives with no hedging relationships
Derivatives with hedging relationships
Other operating assets

Securities and fixed-term deposits

Cash and cash equivalents

Restricted liquid funds
Assets held for sale

Total assets
Financial liabilities

Bonds
Commercial paper
Bank loans/liabilities to banks
Lease obligations
Other financial liabilities

Trade payables and other operating liabilities

Trade payables
Derivatives with no hedging relationships
Derivatives with hedging relationships
Liabilities related to IAS 322
Other operating liabilities

Liabilities associated with assets held for sale

45,733
10,422
30,168
578
4,565
2,948

6,973

452
1,543

62,693
34,151
28,897
767
921
2,512
1,054
53,058
14,360
27,419
590
555
10,134
763

Carrying amounts
within the scope of
IFRS 7
452
782
238
544
442
102
42,068
10,346
30,168
578
977
2,948
2,046
902
6,973
1,200
5,773
452
232
161
71
53,907
33,776
28,897
767
921
2,460
731
45,009
14,242
27,419
590
555
2,202
510
467
43
79,295

Measurement
categories
under IFRS 91
FVPL

Determined using
market prices
(Level 1)
64

Derived from active
market prices
(Level 2)
–

Determined by
valuation methods
(Level 3)
388

Fair value
452

n/a

AmC
FVPL

AmC
FVPL
n/a
AmC

FVPL
FVOCI
AmC
FVPL
AmC
AmC

AmC
FVPL

AmC
AmC
AmC
n/a
AmC

AmC
FVPL
n/a
AmC
AmC

AmC
FVPL

238
545
443
102

30,168
578
960
2,948
2,046
902

1,200

161
71

25,552
770
921
2,452
731

27,419
590
558
2,162

467
43

215

1
–
84
1,120
731
389

–

24,123
–
–

–

–
–
–
229

–

29,452
578
151
1,828
1,315
513

1,200

1,429
770
184

26,307
590
–
552

183
102

714
–
725
–
–
–

–

–
–
737

686

1,112
–
558
1,381

–

209

E.ON Integrated Annual Report 2023

Total liabilities
1FVPL: Fair Value through P&L; FVOCI: Fair Value through OCI; AmC: Amortized Cost. The measurement categories are described in detail in Note 1. The amounts determined using valuation techniques with unobservable
inputs (Level 3 of the fair value hierarchy) correspond to the difference between the total fair values of the two hierarchy levels listed.
2The liabilities from put options include counterparty obligations and non-controlling interests in fully consolidated partnerships (see Note 27).

87,972

Consolidated Financial Statements

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→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

The fair value of shareholdings in unlisted companies and of debt
instruments that are not actively traded, such as loans received,
loans granted and financial liabilities, is determined by discounting
future cash flows. Any necessary discounting takes place using
current market interest rates over the remaining terms of the
financial instruments. The determination of the fair value of
derivative financial instruments is discussed in Note 31.

At the end of each reporting period, E.ON assesses whether there
might be grounds for reclassification between hierarchy levels. In
2023, due to adjusted price quotes, securities with a fair value of
€169 million were reclassified from hierarchy level 1 to hierarchy

Fair Value Hierarchy Level 3 Reconciliation

€ in millions
Equity investments
Derivative financial instruments
Financial receivables and other financial assets
Total

level 2 and securities with a fair value of €283 million were
reclassified from hierarchy level 2 to hierarchy level 1.

The input parameters of Level 3 of the fair value hierarchy for
equity investments are specified taking into account economic
developments and available industry and corporate data (see also
Note 1). A hypothetical change of +10 percent or -10 percent in
these key internal valuation parameters as of the balance sheet
date would lead to a theoretical change in market values of
+€77 million or -€3 million, respectively. Certain long-term energy
contracts are measured using valuation models based on internal
fundamental data if market prices are not available.

A hypothetical change of ±10 percent in the internal valuation
parameters as of the balance sheet date would result in a
theoretical increase or decrease in fair values of ±€5 million. A
change of +10 percent or -10 percent in the key internal
measurement parameters of other financial receivables and other
financial assets as of the balance sheet date would result in a
theoretical increase or decrease in fair values of ±€2 million. The
fair values determined using valuation techniques for financial
instruments carried at fair value are reconciled as shown in the
following table:

Jan. 1, 2023
388
-398
102
92

Purchases
(including
additions)
93
-69
–
24

Sales
(including
disposals)
1
447
–
448

Gains/losses
in income
statement

-44
2
10
-32

Settlements
–
–
-11

-11

into
Level 3
–
–
–
–

Transfers

out of
Level 3
–
–
–
–

Exchange rate
differences

-2
–
–
-2

Dec. 31, 2023
436
-18
101
519

210

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Consolidated Financial Statements

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→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

The extent to which the offsetting of financial assets and financial
liabilities is covered by netting agreements is presented in the
following tables.

Netting Agreements for Financial Assets and Liabilities as of December 31, 2023

Compulsory netting is carried out if the netting criteria pursuant to
IAS 32.42 are met cumulatively.

€ in millions
Financial assets

Transactions and business relationships resulting in the financial
assets and liabilities presented are regularly concluded on the basis
of standard contracts that permit the conditional netting of open
transactions in the event that a counterparty becomes insolvent. If
there is also currently a legal right to set off and the intention is to
settle on a net basis, offsetting is mandatory in accordance with
IAS 32.

The netting agreements are derived from netting clauses
contained in master agreements including those of the
International Swaps and Derivatives Association (ISDA), the
German Master Agreement for Financial Derivatives Transactions
(DRV), the European Federation of Energy Traders (EFET) and the
Financial Energy Master Agreement (FEMA).

Collateral pledged to and received from financial institutions in
relation to these liabilities and assets limits the utilization of credit
lines in the fair value measurement of interest rate and currency
derivatives, and is shown in the table.

Trade receivables
Commodity derivatives
Interest-rate and currency derivatives

Total
Financial liabilities
Trade payables
Commodity derivatives
Interest-rate and currency derivatives

Total

Gross amount

Amount offset

14,172
6,712
1,276
22,160

15,492
10,835
1,608
27,935

3,912
3
–
3,915

Netting Agreements for Financial Assets and Liabilities as of December 31, 2022

€ in millions
Financial assets

Trade receivables
Commodity derivatives
Interest-rate and currency derivatives

Total
Financial liabilities
Trade payables
Commodity derivatives
Interest-rate and currency derivatives

Total

Gross amount

Amount offset

14,110
29,385
1,515
45,010

18,006
26,471
1,694
46,171

3,764
155
–
3,919

Conditional
netting
amount
(netting
agreements)

Financial
collateral
received/
pledged

192
4,049
–
4,241

294
3,948
–
4,242

6
–
27
33

1
–
388
389

Conditional
netting
amount
(netting
agreements)

Financial
collateral
received/
pledged

320
16,794
–
17,114

943
16,171
–
17,114

–
–
86
86

–
–
270
270

Carrying
amount

10,260
6,709
1,276
18,245

11,580
10,832
1,608
24,020

Carrying
amount

10,346
29,230
1,515
41,091

14,242
26,316
1,694
42,252

Net value

10,062
2,660
1,249
13,971

11,285
6,884
1,220
19,389

Net value

10,026
12,436
1,429
23,891

13,299
10,145
1,424
24,868

211

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Consolidated Financial Statements

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→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

The following two tables illustrate the contractually agreed
(undiscounted) cash outflows arising from the liabilities included in
the scope of IFRS 7:

Cash Flow Analysis as of December 31, 2023

€ in millions
Bonds
Commercial paper
Bank loans/liabilities to banks
Lease obligations
Other financial liabilities
Financial guarantees
Cash outflows for financial liabilities
Trade payables
Derivatives (with/without hedging relationships)
Put option liabilities under IAS 32
Other operating liabilities
Cash outflows for trade payables and other operating liabilities
Cash outflows for liabilities within the scope of IFRS 7

Cash Flow Analysis as of December 31, 2022

Cash outflows
2024
2,910
214
776
590
1,382
–
5,872
11,580
16,788
447
3,070
31,885
37,757

Cash outflows
2025
3,159
–
58
469
62
1
3,749
–
3,781
34
61
3,876
7,625

Cash outflows
2026–2028
7,264
–
555
1,054
187
–
9,060
–
2,269
–
16
2,285
11,345

Cash outflows
from 2029
19,578
–
373
2,031
22
7
22,011
–
9,682
88
6
9,776
31,787

Cash outflows
2023
5,299
767
746
585
1,036
0
8,433
14,360
36,577
66
2,370
53,373
61,806

Cash outflows
2024
3,021
–
30
446
75
–
3,571
–
4,193
398
15
4,606
8,177

Cash outflows
2025–2027
7,371
–
272
925
174
1
8,743
–
2,167
–
0
2,167
10,910

Cash outflows
from 2028
20,207
–
262
1,397
66
7
21,939
–
11,324
111
2
11,437
33,375

212

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→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Financial guarantees with a total nominal volume of €15 million
(2022: €8 million) were issued to companies outside of the Group.
This amount is the maximum amount that E.ON would have to pay
in the event of claims on the guarantees. E.ON has recognized a
liability for this in the amount of €8 million (2022: €8 million).

The net gains and losses in the fair value through profit or loss
measurement category encompass both the changes in fair value
from derivative financial instruments and from equity instruments,
and gains and losses on realization. The decrease in net results was
due in particular to reduced income from the valuation and
realization of commodity derivatives.

For financial liabilities that bear floating interest rates, the rates
that were fixed on the balance sheet date are used to calculate
future interest payments for subsequent periods as well. Financial
liabilities that can be terminated at any time are assigned to the
earliest maturity band in the same way as put options that are
exercisable at any time.

In gross-settled derivatives (usually currency derivatives and
commodity derivatives), outflows are accompanied by related
inflows of funds or commodities.

The net gains and losses from financial instruments by IFRS 9
category are shown in the following table:

Net Gains and Losses by Category
€ in millions
Financial assets Amortized Cost
Financial liabilities Amortized Cost
Fair Value through P&L
Fair Value through OCI
Total

2023
-748

-899

-15,810
52
-17,405

2022
-310

-512
3,438
-5
2,611

The net result of the category fair value through OCI results in
particular from currency translation effects, interest results and
income from the sale of fair value through OCI securities in the
amount of €33 million (2022: €12 million).

In addition to impairments of financial assets, net gains and losses
in the amortized cost category are due primarily to interest income
from financial assets and liabilities and effects from the currency
translation of financial liabilities.

Impairments of Financial Assets

Impairment losses on financial assets must be recognized not only
for losses already incurred but also for expected future credit
losses. E.ON takes into account expected future credit losses of
financial assets carried at amortized cost, financial assets
measured at fair value through other comprehensive income, and
receivables from finance leases.

For trade receivables, expected credit losses are recognized over
their entire residual term using the simplified method (lifetime
expected credit loss (ECL) trade receivables). For other financial
assets, E.ON first determines the credit loss expected within the
first 12 months (stage 1—12 month ECL). In derogation of this, in
the event of a significant increase in the default risk, the expected
credit loss over the entire residual term of the respective
instrument is recognized (stage 2—lifetime ECL). Whether the
default risk has increased significantly depends largely on the
counterparty risk as calculated internally on initial recognition.
E.ON uses an 18-point internal rating scale to monitor
counterparty risk. A significant increase in the default risk is
assumed at the earliest after a three-level decline in the rating
(since initial recognition). If there are objective indications of an
actual default, an individual impairment loss must be recognized
on the income statement (stage 3—losses already incurred).

E.ON distinguishes between two approaches when calculating
expected future credit losses. If external or internal rating
information is available, the expected credit loss for trade
receivables and other financial assets is determined on the basis of
this data. If no rating information is available, E.ON determines
default ratios for trade receivables on the basis of historical default
rates, taking into account forward-looking information on
economic developments. In the E.ON Group, a default or the
classification of a receivable as uncollectable is assumed after 180,
270 or 360 days, depending on the region.

In 2023, valuation allowances for trade receivables changed as
shown in the following table:

Valuation Allowances for Trade Receivables
€ in millions
Balance as of January 1
Disposals
Impairments
Other1
Balance as of December 31
1The item "Other" includes currency translation differences.

2023

-1,612
121
-983

-17

-2,491

2022

-1,253
259
-657
39

-1,612

There were no significant changes in valuation allowances in 2023
for other financial assets measured at amortized cost or at fair
value through other comprehensive income, or for receivables
from finance leases.

213

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→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

The default risks for financial assets for which rating information is
available can be found in the following table for each rating grade
and separately according to the stages of impairment existing in
2023:

Credit Risk Exposure for Financial Assets for Which Rating Information is Available

€ in millions
Gross carrying amount investment grade
Gross carrying amount non-investment grade
Gross carrying amount default grade
Total
1In order to harmonize the presentation of business with Residential and SME customers in the Group, the prior-year figures have been adjusted.

Stage 1 financial assets
2022
2023
7,927
6,886
57
36
–
–
7,984
6,922

Trade receivables
2022 ¹
2,877
192
122
3,191

2023
1,455
848
313
2,616

The default risks for trade receivables for which no rating
information is available and the amount of expected credit losses
over the remaining term are shown in the following matrix for each
maturity class:

Credit Risk Exposure for Trade Receivables for Which No Rating Information is Available

€ in millions
Not past due
Past due by

up to 30 days
31 to 60 days
61 to 90 days
91 to 180 days
more than 180 days incl. specific valuation allowances

Total
1In order to harmonize the presentation of business with Residential and SME customers in the Group, the prior-year figures have been adjusted.

Gross carrying amount
2022 ¹
2023
5,670
5,980
2,684
3,757
528
632
306
380
176
232
371
512
1,303
2,001
8,354
9,737

Lifetime ECL
2022 ¹
127
1,351
34
31
29
123
1,134
1,478

2023
110
2,163
45
49
38
160
1,871
2,273

Risk Management

Principles
The prescribed processes, responsibilities and actions concerning
financial and risk management are described in detail in internal
risk management guidelines applicable throughout the Group. The
units have developed additional guidelines of their own within the
confines of the Group’s overall guidelines. To ensure efficient risk
management at the E.ON Group, the Trading (Front Office),
Finance Controlling (Middle Office) and Financial Settlement (Back
Office) departments are organized as strictly separate units. Risk
steering and reporting in the areas of interest rates, currencies and
credit for banks and liquidity management is performed by the
Finance Controlling department (in the credit area, also in part by
Counterparty Risk Management), while risk steering and reporting
in the area of commodities and in the credit area for industrial
enterprises is performed at Group level by a separate department.

E.ON uses a Group-wide treasury, risk management and reporting
system. This system is a standard information technology solution
that is fully integrated and is continuously updated. The system is
designed to provide for the analysis and monitoring of the E.ON
Group’s exposure to liquidity, foreign exchange and interest risks.
On a Group-wide basis, Finance Controlling/Counterparty Risk
Management monitors and steers credit risks for banks, and
Counterparty Risk Management monitors and steers corporates of
a certain materiality. These activities are carried out each using a
standard software package.

Separate Risk Committees/Steering Groups are responsible for the
maintenance and further development of the strategy set by the
Management Board of E.ON SE with regard to commodity,
treasury and credit risk management policies.

1. Liquidity Management
The primary objectives of liquidity management at E.ON consist of
ensuring the ability to pay at all times, the timely satisfaction of

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contractual payment obligations and the optimization of costs
within the E.ON Group.

Cash pooling and external financing are largely centralized at E.ON
SE and certain financing companies. Funds are provided to the
other Group companies as needed on the basis of an “in-house
banking” solution.

E.ON SE determines the Group’s financing requirements on the
basis of short- and medium-term liquidity planning. The financing
of the Group is controlled and implemented on a forward-looking
basis in accordance with the planned liquidity requirement or
surplus. Relevant planning factors taken into consideration include
operating cash flow, capital expenditures, divestments, margin
payments and the maturity of bonds and commercial paper.

2. Price Risks
In the normal course of business, the E.ON Group is exposed to
risks arising from price changes in foreign exchange, interest rates,
commodities and asset management. These risks create volatility
in earnings, equity, debt and cash flows from period to period.
E.ON has developed a variety of strategies to limit or eliminate
these risks, including the use of derivative financial instruments,
among others.

3. Credit Risks
E.ON is exposed to credit risk in its operating activities and through
the use of financial instruments. Uniform credit risk management
procedures are in place throughout the Group to identify, measure
and steer credit risks.

The following discussion of E.ON’s risk management activities and
the estimated amounts generated from value-at-risk (“VaR”) and
sensitivity analyses are “forward-looking statements” that involve
risks and uncertainties. Actual results could differ materially from
those projected due to actual, unforeseeable developments in the
global financial markets. The methods used by the Company to
analyze risks should not be considered forecasts of future events

or losses. For example, E.ON faces certain risks that are either non-
financial or non-quantifiable. Such risks principally include country
risk, operational risk, regulatory risk and legal risk, which are not
represented in the following analyses.

Foreign Exchange Risk Management
E.ON SE is responsible for steering the currency risks to which the
E.ON Group is exposed.

(2022: €0.7 million) and is mainly determined by the currencies
Czech koruna, Hungarian forint and Swedish krona.

Financial transaction risks result from payments originating from
financial receivables and payables. They are generated both by
external financing in a variety of foreign currencies, and by
shareholder loans from within the Group denominated in foreign
currency. Financial transaction risks are generally hedged.

Because it holds interests in businesses outside of the eurozone,
currency translation risks arise within the E.ON Group.
Fluctuations in exchange rates produce accounting effects
attributable to the translation of the balance sheet and income
statement items of the foreign consolidated Group companies
included in the Consolidated Financial Statements. Translation
risks are hedged through borrowing in the corresponding local
currency, which may also include shareholder loans in foreign
currency. In addition, derivative and non-derivative financial
instruments are employed as needed. The hedges qualify for hedge
accounting under IFRS as hedges of net investments in foreign
operations. The Group’s translation risks are reviewed at regular
intervals and the level of hedging is adjusted whenever necessary.
The respective debt factor, net assets and the enterprise value
denominated in the foreign currency are the principal criteria
governing the level of hedging.

Interest Rate Risk Management
E.ON is exposed to profit risks arising from floating-rate financial
liabilities and future (re)financing needs. Positions based on fixed
interest rates, on the other hand, are subject to changes in fair
value resulting from the volatility of market interest rates. E.ON
seeks a balanced maturity profile. This is influenced, among other
factors, by the type of business model, existing liabilities as well as
the regulatory framework in which E.ON operates. Interest rate
derivatives are also used to manage interest rate risk.

With interest rate derivatives and cash on hand included, the share
of financial liabilities with floating interest rates or with maturities
of less than 12 months was 0 percent as of December 31, 2023
(2022: 0 percent). The volume-weighted average interest rate of
the financial liabilities, including interest rate derivatives, was 2.8
percent as of December 31, 2023 (2022: 2.7 percent).

The E.ON Group is also exposed to operating and financial
transaction risks attributable to foreign currency transactions. The
subsidiaries are responsible for managing their operating currency
risks and are generally required to hedge their currency risks
through E.ON SE. E.ON SE coordinates hedging throughout the
Group companies and makes use of external derivatives as needed.
It may either directly close out foreign currency positions that have
been tendered, in whole or in part, through external transactions,
or keep the position open within approved limits. The one-day
value-at-risk (95 percent confidence) for transactional foreign
currency positions totaled €0.2 million as of December 31, 2023

As of December 31, 2023, the E.ON Group held interest rate
derivatives with a nominal value of €5,512 million (2022: €6,263
million).

A sensitivity analysis was performed on the Group’s floating-rate
borrowings and planned financing, including interest risk hedges.
This measure is used for internal risk controlling and reflects the
economic position of the E.ON Group. A one-percentage-point
upward or downward change in interest rates (across all
currencies) would raise or lower interest charges by ±€15 million
(2022: ±€8.0 million) in the subsequent fiscal year.

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Commodity Price Risk Management
The E.ON portfolio of physical assets, long-term contracts and
end-customer sales is exposed to substantial risks from
fluctuations in commodity prices. The principal commodity prices
to which E.ON is exposed relate, in particular, to electricity, gas,
green and emissions certificates.

The objective of commodity risk management is to transact
through physical and financial contracts to optimize the value of
the portfolio while reducing the potential negative deviation from
target EBITDA and OCF.

In the normal course of business of the underlying energy
production and retail sales activities, E.ON’s individual
management units are exposed to uncertain commodity market
prices, which impacts operating results. All external trading on
commodity markets contributes to reducing open commodity
positions driven by sales and is undertaken in strict accordance
with approved commodity hedging strategies.

A very small number of proprietary trading transactions are
entered into in separate trading books, which are subject to strict
monitoring and limits based on risk metrics and governance. The
processes and operational management models within the trading
system are monitored by the local market risk teams and centrally
managed by the Risk Management department.

The subsidiary, E.ON Energy Markets GmbH (EEM), acts as a
central interface to the wholesale markets. The main function of
EEM is to consolidate E.ON’s commodity positions, to reduce price
risks from the distribution business and to diversify and reduce
credit and margin risks.

As of December 31, 2023, the E.ON Group primarily held
electricity and gas derivatives with a nominal value of €125,767
million (2022: €136,765 million). Electricity derivatives account
for €45,418 million (2022: €66,648 million) of this amount and
gas derivatives for €80,268 million (2022: €70,055 million).

A key foundation of the commodity risk management system is
the Group-wide Commodity Risk Policy and the corresponding
internal policies of the units. These specify the control principles
for commodity risk management, minimum required standards
and clear management and operational responsibilities.

Commodity exposures and risks are reported across the Group on
a monthly basis to the members of the Risk Committee. A report
on complex weather risks is prepared once each quarter.

A hypothetical change in market prices at the reporting date of
+10 percent or -10 percent would result in a theoretical increase in
fair value and recognition in income in the amount of €767 million,
or a decrease in fair value and recognition in expense in the
amount of €768 million for the electricity derivatives (2022:
±€1,338 million). A corresponding hypothetical change would
result in a theoretical increase in fair value and recognition in
income in the amount of €279 million or a decrease in fair value
and recognition in expense in the amount of €279 million for gas
derivatives (2022: ±€810 million). Because commodity hedge
accounting is only applied in individual cases, hypothetical changes
in market prices result in only immaterial effects recognized in
other comprehensive income.

Credit Risk Management
In order to minimize credit risk arising from operating activities and
from the use of financial instruments, the Company enters into
transactions only with counterparties that satisfy the Company’s
internally established minimum requirements. Maximum credit
risk is confined by credit limits based on internal and (where
available) external credit ratings. The setting and monitoring of
credit limits is subject to certain minimum requirements, which are
based on Group-wide credit risk management guidelines. Long-
term operating contracts and asset management transactions are
not comprehensively included in this process. They are monitored
separately at the level of the responsible units.

In principle, each Group company is responsible for managing
credit risk in its operating activities. Depending on the nature of
the operating activities and the credit risk, additional credit risk
monitoring and controls are performed both by the units and by
Corporate Headquarters. Regular reports on credit limits, including
their utilization, are submitted to the Risk Committee. Intensive,
standardized monitoring of quantitative and qualitative early-
warning indicators, as well as close monitoring of the credit quality
of counterparties, enable E.ON to act early in order to minimize
risk.

To the extent possible, collateral is negotiated with counterparties
for the purpose of reducing credit risk. Accepted as collateral are
primarily guarantees issued by the respective parent companies,
letters of comfort or evidence of profit and loss transfer
agreements in combination with letters of awareness. To a lesser
extent, the Company also requires bank guarantees and deposits
of cash and securities as collateral to reduce credit risk. Risk
management collateral in the forms mentioned above totaling
€10.3 billion (2022: €61.0 billion) was used for setting limits. The
lower wholesale market price level over the course of 2023 means
that the collateral attributable to individual parent companies of
our counterparties is lower and must be taken into account
accordingly.

Derivative transactions are generally executed on the basis of
standard agreements that allow for the netting of all open
transactions with individual counterparties. To further reduce
credit risk, bilateral margining agreements are entered into with
selected banks. Limits, which are regularly monitored, are imposed
on the credit and liquidity risk resulting from bilateral margining
agreements and exchange clearing. The systematic management
of liquidity risk remains an important component of risk
management at E.ON, particularly against the backdrop of the
continued possibility of energy price volatility.

There is no credit risk with respect to the exchange-traded forward
and option contracts with an aggregate nominal value of €21,979

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million as of December 31, 2023 (2022: €37,086 million). For the
remaining financial instruments, the maximum risk of default is
equal to their nominal amounts.

2023 (2022: €51.9 million). The company was deconsolidated on
June 30, 2019.

At E.ON, liquid funds are normally invested at banks with good
credit ratings, in money market funds with first-class ratings or in
short-term securities (for example, commercial paper) of issuers
with strong credit ratings. Bonds of public and private issuers are
also selected for investment. Group companies that for legal
reasons are not included in the cash pool invest money at leading
local banks. Standardized credit assessment and limit-setting is
complemented by daily monitoring of CDS levels at the banks and
at other significant counterparties.

Asset Management

For the purpose of financing long-term payment obligations,
including those relating to asset retirement obligations (see Note
26) and cash investments, financial investments totaling
€2.3 billion (2022: €2.4 billion) were held predominantly by
German E.ON Group companies as of December 31, 2023.

These financial assets are invested on the basis of an accumulation
strategy (total-return approach), with investments broadly
diversified across the various asset classes, for example the money
market, bond and equity asset classes, as well as alternative asset
classes like real estate. The majority of the assets are held in
investment funds managed by external fund managers. Corporate
Asset Management at E.ON SE, which is part of the Company’s
Finance Department, is responsible for continuous monitoring of
overall risks and those concerning individual fund managers. The
three-month VaR with a 98 percent confidence interval for these
financial assets was €78 million (2022: €166 million).

The liquidation of Versorgungskasse Energie VVaG (VKE i. L.) was
almost complete as of December 31, 2023. Financial investments
under management amounted to €46.0 million as of December 31,

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to future rental payments for the new office building of E.ON
Sverige AB in Malmö, which was occupied in 2023 and is now
included in the rights of use. The existing lease liabilities do not
contain any covenant clauses that are linked to financial ratios.

As of the balance sheet date of December 31, 2023, right-of-use
assets are offset by lease liabilities with a present value of €2,874
million (2022: €2,512 million) recognized under financial liabilities

(see Note 27); the short-term portion of the lease liabilities totals
€371 million (2022: €367 million). The maturity structure of the
future payment obligations from leases is presented in Note 32.
Due to the practical expedients used, the recognition of a right-of-
use asset is not necessary for low-value leases and leases with a
lease term of less than 12 months. Instead, a lease expense is
recognized in these cases. The following amounts are recognized in
the income statement in connection with leases in the fiscal year:

E.ON as Lessee—Effects within the Income Statement
€ in millions
Expenses from short-term leases (< 12 months)
Expense for low-value leases not included in short-term leases
Expense from variable lease payments
Interest expense from leasing
Income from subleases
Gain/loss from sale and leaseback transactions

2023
37
18
11
185
–
-3

2022
36
11
14
162
–
-6

(33) Leasing

E.ON as Lessee

E.ON operates as a lessee especially in the areas of networks, land
and buildings, and vehicle fleets. Leases are recognized in
accordance with the right-of-use model as set out in IFRS 16. The
tables in Note 15 present the development of the right-of-use
assets by asset class. The net carrying amount of the rights of use
at the balance sheet date of December 31, 2023, in the amount of
€2,710 million (2022: €2,377 million) increased year-on-year by
€333 million (2022: €47 million). In addition to the network
business, the increase is primarily attributable to the areas of fiber
optics, real estate and battery storage systems. Depreciation of
right-of-use assets in the amount of €417 million (2022: €390
million) showed a slight increase compared with the prior year.

To ensure operative flexibility, in particular for real estate leases as
well as in the area of wastewater disposal, extension and
termination options are included in the agreements. In determining
the lease term, E.ON considers all facts and circumstances that
have an impact on the exercise of an extension option or the non-
exercise of a termination option. In the determination of the lease
liability, and correspondingly of the right-of-use assets, all
reasonably certain cash outflows are taken into consideration. As
of December 31, 2023, potential future cash outflows in the
amount of €304 million (2022: €235 million) were not included in
the lease liability as it is not reasonably certain that the leases will
be renewed or not terminated. Possible future cash outflows for
lease agreements that can be terminated without penalty by either
party, subject to certain deadlines, are not included in this amount
due to higher levels of uncertainty. Variable lease payments occur
in only immaterial amounts and E.ON generally does not issue
residual value guarantees. Leases not yet commenced to which
E.ON as a lessee is committed result in potential future cash
outflows over the expected lease terms of €26 million (2022:
€110 million). The majority of the figure reported in 2022 related

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The liabilities from short-term agreements with a term of less than
12 months entered into for the next fiscal year do not vary
materially from the expenses of the current fiscal year.

The nominal and present values of the lease payments had the
following maturities:

E.ON as Lessor—Finance Leases

Cash outflows from lease agreements totaled €634 million (2022:
€580 million) in the fiscal year and are allocated to operating cash
flow in the amount of €251 million (2022: €223 million). This
includes the lease expense for short-term and low-value leases as
well as the expense from variable lease payments and interest
expense for the period. Payments allocated to the amortization of
the lease liability are recognized in cash flows from financing
activities in the amount of €383 million (2022: €357 million).

E.ON as Lessor

E.ON enters into lease agreements as a lessor to a limited extent.
Finance leases include technical equipment and machinery, in
particular generation plants, that have been transferred to
customers for use. Operating leases include assets that have been
transferred for use, in particular real estate, heat and electricity
generation plants and lines. There are no material risks in
connection with rights retained to the assets temporarily
transferred for use, with the result that risk management
strategies, in particular, are not necessary. Residual-value
guarantees are only entered into on an individual basis for
purposes of additional hedging.

The present value of minimum lease payments is recognized under
receivables from finance leases (see Note 18). The short-term
portion totals €29 million (2022: €33 million). There were no
material changes to net investments in the period under review.

€ in millions
Due within 1 year
Due in 1 to 2 years
Due in 2 to 3 years
Due in 3 to 4 years
Due in 4 to 5 years
Due in more than 5 years
Total

Undiscounted lease payments
2022
53
45
38
32
28
174
370

2023
46
49
38
33
32
141
339

Unrealized interest income
2022
20
18
15
14
12
44
123

2023
17
18
14
13
12
33
107

Discounted non-guaranteed
residual value
2022
–
–
–
8
–
11
19

2023
–
–
–
8
–
12
20

Present value of minimum
lease payments
2022
33
27
23
26
16
141
266

2023
29
32
23
28
20
120
252

The following effects from activity as lessor are recognized for the
period under review:

E.ON as Lessor—Effects within the Income Statement
€ in millions
Finance lease

2023

Gain/loss from the disposal of assets
Financial income from net investments
Income from variable lease payments

Operating lease

Income from leasing
thereof income from variable lease
payments

1
20
2

–

2022

–
21
5

Cash flows from operating leases are allocated to operating cash
flow before interest and taxes. This also applies to cash inflows
from finance leases with variable lease payments. Payments
recognized as financing income from net investments increase the
operating cash flow.

The following inpayments are expected from existing operating
leases:

E.ON as Lessor—Operating Leases

€ in millions
Due within 1 year
Due in 1 to 2 years
Due in 2 to 3 years
Due in 3 to 4 years
Due in 4 to 5 years
Due in more than 5 years
Total

Undiscounted lease payments
2022
82
65
57
52
49
103
408

2023
79
66
61
58
61
101
426

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The members of the Supervisory Board received a total of €4.6
million for their activity in 2023 (2022: €5.0 million).

Employee representatives on the Supervisory Board were paid
compensation under the existing employment contracts with
subsidiaries totaling €0.9 million (2022: €1.0 million).

(34) Transactions with Related Parties

E.ON exchanges goods and services with a large number of
companies as part of its continuing operations. Some of these
companies are related parties, including associated companies
accounted for under the equity method and their subsidiaries.
Receivables and payables consist primarily of lease obligations
from leaseback models and trade receivables. Joint ventures and
subsidiaries that are not fully consolidated continue to be
accounted for as associated companies. Transactions with related
parties in the reporting year and in the previous year are
summarized as follows:

Related-Party Transactions
€ in millions
Income

Associated companies
Joint ventures
Other related parties

Expenses

Associated companies
Joint ventures
Other related parties

Receivables

Associated companies
Joint ventures
Other related parties

Liabilities

Associated companies
Joint ventures
Other related parties

Provisions

Associated companies
Joint ventures
Other related parties

2023
2,232
1,587
365
280
1,510
678
161
671
1,007
437
83
487
2,494
1,090
755
648
7
4
3
–

2022
3,881
3,235
405
241
3,357
2,543
298
516
1,199
695
62
442
2,590
1,543
525
521
11
8
3
–

In 2023, E.ON generated income from transactions with related
companies through the delivery of gas and electricity to
distributors and municipal entities, especially municipal utilities.
The relationships with these entities do not generally differ from
those that exist with municipal entities in which E.ON does not
have an interest. Expenses from transactions with related
companies are generated mainly through electricity and gas
deliveries as well as through management fees, IT services and
third-party services.

Liabilities of E.ON payable to related companies as of December
31, 2023, include €60 million (2022: €55 million) in trade
payables and shareholder loans to operators of jointly owned
nuclear power plants. These shareholder loans bear interest at 1.0
percent (2022: 1.0 percent) and have no fixed maturity. E.ON
continues to have in place with these power plants a cost-transfer
agreement and a cost-plus-fee agreement for the procurement of
electricity. The settlement of such liabilities occurs mainly through
clearing accounts.

Under IAS 24, compensation paid to key management personnel
(members of the Management Board and of the Supervisory Board
of E.ON SE) must be disclosed.

The total expense for 2023 for members of the Management
Board amounted to €12.5 million (2022: €11.8 million) in short-
term benefits and €0.2 million (2022: €0.3 million) in post-
employment benefits. The cost of post-employment benefits is
equal to the service cost of the provisions for pensions.

The expense determined in accordance with IFRS 2 for existing
commitments arising from share-based payment in 2023 was
€11.0 million (2022: €2.7 million).

Provisions for these commitments amounted to €18.0 million as of
December 31, 2023 (2022: €10.1 million).

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(35) Segment Reporting

Segment Information

Led by its Corporate Headquarters in Essen, Germany, the E.ON
Group comprises the reporting segments described below, all of
which are reported here in accordance with IFRS 8. The combined
segments, which are not separately reportable, in the Energy
Networks East-Central Europe/Turkey unit and the Customer
Solutions Other unit are of subordinate importance and have
similar economic characteristics with respect to customer
structure, products and distribution channels.

Energy Networks

Germany
This segment combines the electricity and gas distribution
networks and all related activities in Germany.

Sweden
This segment comprises the electricity networks businesses in
Sweden.

East-Central Europe/Turkey
This segment combines the distribution network activities in the
Czech Republic, Hungary, Romania, Poland, Croatia, Slovakia and
Turkey.

Customer Solutions

Germany
This segment consists of activities that supply our customers in
Germany with electricity and gas and the distribution of specific
products and services in areas for improving energy efficiency and
energy independence. This item also includes the heating business
in Germany.

United Kingdom
This segment reports sales activities and customer solutions in the
UK.

The Netherlands
The segment comprises electricity and gas sales and Customer
Solutions in the Netherlands.

Other
This segment combines sales activities and the corresponding
Customer Solutions in Sweden, Norway, Denmark, Italy, the Czech
Republic, Hungary, Croatia, Romania, Poland, Slovakia and the
innovative solutions business.

Corporate Functions/Other
Corporate Functions/Other contains E.ON SE itself and the
interests held directly by E.ON SE. The main task of Corporate
Functions is to manage the E.ON Group. This includes the strategic
development of the Group and the management and financing of
the existing business portfolio. The E.ON Group’s internal service
providers are also reported here. This includes E.ON Energy
Markets GmbH as the Group’s central commodity procurement
unit. In addition, the non-strategic activities of the E.ON Group are
reported here. This includes the operation until April 15, 2023, and
the retirement of the German nuclear power plants, which are
managed by the PreussenElektra GmbH operating unit, and the
electricity generation business in Turkey, all of which were
reported until the end of 2022 in the Non-Core Business segment.

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Financial Information by Business Segment1

€ in millions
External sales
Intersegment sales
Sales
Adjusted EBITDA

Equity-method earnings
Depreciation and amortization2
Operating cash flow before interest and taxes
Investments

investments in intangible assets and property, plant and
equipment

2023
13,609
5,503
19,112
5,034
343
-1,705
4,472
3,752

Germany
2022
11,185
5,063
16,248
4,153
247
-1,566
5,557
2,763

Sweden
2022
1,002
5
1,007
452
–
-180
536
411

2023
986
5
991
576
–
-185
648
510

Energy Networks
ECE/Turkey
2022
1,841
1,162
3,003
854
137
-304
927
671

2023
3,021
884
3,905
1,030
185
-355
966
894

2023
25,314
10,792
36,106
993
4
-214
1,419
433

Germany
2022
29,518
9,214
38,732
760
5
-196
1,198
358

United Kingdom
2022
25,422
6,570
31,992
208
–
-136
989
127

2023
23,969
9,011
32,980
810
–
-155
932
177

The Netherlands
2022
5,227
4,955
10,182
324
9
-66
354
41

2023
4,201
6,796
10,997
227
7
-71
371
146

Customer Solutions
Other
2022
14,705
610
15,315
394
5
-193

2023
11,140
1,081
12,221
777
11
-201
966
368

-116
305

3,628

2,737

510

411

893

671

363

300

177

127

293

238

1Because of changes in segment reporting, the prior-year figure was adjusted accordingly.
2Adjusted for non-operating effects.

€ in millions
External sales
Intersegment sales
Sales
Adjusted EBITDA

Equity-method earnings
Depreciation and amortization2
Operating cash flow before interest and taxes
Investments

Corporate
Functions/Others
2022
2023
26,760
11,445
30,941
47,076
57,701
58,521
918
-79
223
179
-221
-97
2,067
76

-2,547
141

investments in intangible assets and property, plant and
equipment

1Because of changes in segment reporting, the prior-year figure was adjusted accordingly.
2Adjusted for non-operating effects.

Consolidation
2022
–
-58,520

2023
1
-81,148

-81,147
2
–
–
-2
–

-58,520

-4
-1
–
-1
1

–

2023
93,686
0
93,686
9,370
729
-2,983
7,225
6,421

E.ON Group
2022
115,660
0
115,660
8,059
625
-2,862
11,511
4,753

6,010

4,576

222

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

The following table shows the reconciliation of operating cash flow
before interest and taxes to operating cash flow from continuing
operations:

Reconciliation of Operating Cash Flow1
€ in millions
Operating cash flow before interest and taxes
Interest payments
Tax payments
Operating cash flow

1Operating cash flow from continuing operations.

Adjusted EBITDA

2023
7,225
-855

-716
5,654

2022
11,511
-872

-594
10,045

In 2023, adjusted EBITDA, a measure of earnings before interest,
taxes, depreciation and amortization adjusted to exclude
extraordinary effects (“adjusted EBITDA”), was used at E.ON for
purposes of internal management control and as the most
important indicator of a business’s sustainable earnings power.

The E.ON Management Board is convinced that adjusted EBITDA
is the most suitable key figure for assessing operating
performance because it presents E.ON’s operating earnings
independently of non-operating factors, interest, taxes and
amortization.

Unadjusted earnings before interest, taxes, depreciation and
amortization (“EBITDA”) represents the Group’s income/loss
reported in accordance with IFRS corrected by net interest income,
income taxes and impairment charges and reversals of impairment
charges. To improve its meaningfulness as an indicator of the
sustainable earnings power of the E.ON Group’s business,
unadjusted EBITDA is adjusted for certain non-operating effects.

Operating earnings also include income from investment subsidies
for which liabilities are recognized.

The non-operating earnings effects for which EBITDA is adjusted
include, in particular, non-operating interest expense/income,
income and expenses from the marking to market on the reporting
date of unrealized commodity derivatives and related provisions
for contingent losses, where material, book gains/losses, certain
restructuring expenses, impairment charges and reversals
recognized on equity investments in affiliated or associated
companies, and other contributions to non-operating earnings. IAS
29 was applied for the first time in 2022 because of the
hyperinflation in Turkey and the effects recognized in income are
also presented in other non-operating earnings.

In addition, effects from the valuation of certain provisions on the
balance sheet date are disclosed in non-operating earnings. In
addition, effects that are to be initially recognized from the
subsequent measurement of hidden reserves and charges in
connection with the innogy purchase price allocation are included.

Effects in connection with derivative financial instruments
changed by €1,110 million to -€4,233 million. The reason was
that prices on commodity markets decreased almost continually
during the year, which led to declining fair value measurements on
forward sales and procurement contracts.

of -€130 million (prior year: -€410 million). PreussenElektra’s
earnings, which are disclosed as non-operating income effective
2023, had a countervailing effect (€289 million).

223

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→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

The following table shows the reconciliation of earnings before
financial results and taxes to adjusted EBITDA:

Non-Operating Adjustments

Reconciliation to Adjusted EBITDA

Fourth quarter
2022
807
-3

-4,394

-31

-217

-3,838

-115

-64
484
738
-2,795

2023
12
4
-1,587
13
-219

-1,777

-107

-112

-514
1,539
-971

Fourth quarter
2022
1,949
-3,838

-1,889

-966

-2,855

2023
1,581
-1,777

-196

-1,076

-1,272

2023
5
-22

-4,233

-100

-237

-4,587

-448

-156

-12
1,922
-3,281

2023
9,370
-4,587
4,783
-3,588
1,195

Full year
2022
748
-88

-3,123

-112

-961

-3,536

-504

-86
1,817
1,306
-1,003

Full year
2022
8,059
-3,536
4,523
-3,453
1,070

224

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→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

2023
2,199
2,038
–
161
16,964
7,722
4,846
1,640
2,756
4,814
23,977

2022
1,434
1,314
–
120
19,570
7,419
5,019
2,965
4,167
17,176
38,180

Additional Entity-Level Disclosures

External sales by product break down as follows:

Segment Information by Product
€ in millions
Electricity
Gas
Other
Total

2023
57,791
23,977
11,918
93,686

2022
70,234
38,180
7,246
115,660

The “Other” item consists in particular of revenues generated from
services.

External sales of the products electricity and gas recognized under
IFRS 15 are broken down by reportable segment as follows:

Gas
€ in millions
Energy Networks
Germany
Sweden
ECE/Turkey
Customer Solutions
Germany
United Kingdom
The Netherlands
Other

Corporate Functions/Other
E.ON Group

Electricity
€ in millions
Energy Networks
Germany
Sweden
ECE/Turkey
Customer Solutions
Germany
United Kingdom
The Netherlands
Other

Corporate Functions/Other
E.ON Group

2023
12,862
9,498
985
2,379
38,451
15,935
14,822
1,324
6,370
6,478
57,791

2022
10,781
8,212
1,002
1,567
50,001
20,490
18,540
1,898
9,073
9,452
70,234

225

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→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

The following table breaks down external sales (by customer and
seller location), intangible assets and property, plant and
equipment, as well as companies accounted for under the equity
method, by geographic area:

Geographic Segment Information

€ in millions
External sales by location of customer
External sales by location of seller
Intangible assets
Right-of-use assets
Property, plant and equipment
Companies accounted for under the equity
method

1Belgium included in Europe (other) segment.

2023
37,497
50,142
1,497
2,301
28,545

Germany
2022
54,196
67,230
1,498
2,082
26,259

United Kingdom
2022
28,358
25,519
144
88
747

2023
33,145
24,054
137
96
796

2023
2,191
2,246
193
92
5,453

Sweden
2022
2,832
2,948
186
39
5,064

The Netherlands1
2022
5,320
5,227
214
34
76

2023
1,365
4,201
177
79
80

Europe (other)
2022
24,863
14,645
1,411
133
5,266

2023
19,389
12,944
1,588
137
5,867

2023
99
99
–
5
8

Other
2022
91
91
–
1
7

2023
93,686
93,686
3,592
2,710
40,749

Total
2022
115,660
115,660
3,453
2,377
37,419

4,284

3,789

2,238

1,621

–

6,652

5,532

E.ON’s customer structure resulted in a focus on the Germany
region. Aside from that, there was no major concentration in any
given geographical region or business area. Due to the large
number of customers the Company serves and the variety of its
business activities, there are no individual customers whose
business volume is material compared with the Company’s total
business volume.

226

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→ Notes

(36) Compensation of Supervisory Board and
Management Board

Supervisory Board

(37) Subsequent Events

Changes to the Business Model

Total remuneration to members of the Supervisory Board in 2023
amounted to €4.6 million (2022: €5.0 million).

There were no loans to members of the Supervisory Board in
2023.

Management Board

Total compensation of the Management Board in 2023 amounted
to €20.2 million (2022: €19.5 million). This consists of non-
performance-based compensation (base salary, fringe benefits)
and performance-based compensation (bonus, long-term variable
compensation).

In 2023, the members of the Management Board were granted
seventh-tranche virtual shares under the E.ON Performance Plan
(2022: sixth tranche of the E.ON Performance Plan) with a value of
€7.8 million (2022: €7.8 million) and a total number of shares of
832,082 (2022: 607,760) as part of the total compensation.

Total payments to former members of the Management Board and
their beneficiaries amounted to €16.3 million (2022: €14.0
million). Provisions of €170.6 million (2022: €184.5 million) have
been established for the pension obligations to former members of
the Management Board and their beneficiaries.

There were no loans to members of the Management Board in
2023.

On September 11, 2023, the Management Board approved a new
management concept for the E.ON Group. Effective from January
1, 2024, this entails a change in the definition of certain operating
segments in accordance with IFRS 8 and the reallocation of the
current goodwill amounts for all operating segments affected by
the changes and reporting goodwill as of January 1, 2024. The
Management Board's decision was regarded as an opportunity to
test the goodwill of the existing operating segments for
impairment. The impairment tests carried out as of September
2023 found no indication of impairment. Following the entry into
force of the new management concept, the goodwill amounts
reallocated as of January 1, 2024, are subject to the provisions of
IAS 36 on impairment testing. In the new Energy Infrastructure
Solutions segment, there may be an impairment risk of up to a
mid-triple-digit million euro amount.

Corporate Bonds Issued

E.ON issued two green corporate bonds at the beginning of
January 2024. One bond has a volume of €750 million due in
January 2031 with a 3.375 percent coupon; the other bond has a
volume of €750 million due in January 2036 with a 3.75 percent
coupon.

Arbitration Proceeding in Spain

E.ON SE, E.ON Finanzanlagen GmbH and E.ON Iberia Holding
GmbH are plaintiffs in arbitration proceedings against the
Kingdom of Spain. In the arbitration proceedings, the three
companies are asserting claims for damages for changes to the
Spanish renewable energies subsidies regime. The arbitration
proceedings have been pending at the International Centre for
Settlement of Investment Disputes (ICSID) their registration on
August 10, 2015. On January 18, 2024, an arbitration court

awarded the companies damages totaling approximately €0.3
billion. Because not all legal remedies have yet been pursued and
there are therefore currently uncertainties regarding the final
outcome of the proceedings, E.ON is not recognizing either a
receivable or any associated income in the 2023 financial
statements, and instead a contingent receivable is reported (see
Note 18).

Termination of Operating Concession Wastewater
Treatment Plant in Croatia

A concession agreement for the operation of a wastewater
treatment plant exists between Zagrebacke otpadne vode d.o.o., a
company consolidated at equity in the E.ON Group, and the City of
Zagreb. By majority resolution of the City Assembly on January 25,
2024, the City of Zagreb exercised its contractually agreed right to
unilaterally terminate this concession. This results in a six-month
period from the receipt of the termination letter of February 2,
2024, during which the city will either acquire the individual assets
of Zagrebacke otpadne vode d.o.o. or the shares held by E.ON in
this company. The City of Zagreb has yet to determine how the
sale will take place at the time of preparation of the Consolidated
Financial Statements. The financial impact of the transactions
cannot yet be reliably estimated at the time of preparation. Under
the terms of the concession agreement, the disposal value will
initially be determined by a consultant to be appointed jointly. The
associate is allocated to the Energy Networks ECE/Turkey
segment.

227

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→ Notes

(38) List of Shareholdings Pursuant to Section 313 (2) HGB

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
100 Kilowatt Naperőmű Alfa Korlátolt Felelősségű Társaság, HU,
Budapest2
100 Kilowatt Naperőmű Béta Korlátolt Felelősségű Társaság, HU,
Budapest2
100 Kilowatt Naperőmű Delta Korlátolt Felelősségű Társaság, HU,
Budapest2
100 Kilowatt Naperőmű Epszilon Korlátolt Felelősségű Társaság, HU,
Budapest2
100 Kilowatt Naperőmű Éta Korlátolt Felelősségű Társaság, HU,
Budapest2
100 Kilowatt Naperőmű Gamma Korlátolt Felelősségű Társaság, HU,
Budapest2
100 Kilowatt Naperőmű Kappa Korlátolt Felelősségű Társaság, HU,
Budapest2
450connect GmbH, DE, Cologne6
4Motions GmbH, DE, Leipzig2
A/V/E GmbH, DE, Halle (Saale)2
Abens-Donau Netz GmbH & Co. KG, DE, Mainburg6
Abens-Donau Netz Verwaltung GmbH, DE, Mainburg6
Abfallwirtschaft Dithmarschen GmbH, DE, Heide6
Abfallwirtschaft Rendsburg-Eckernförde GmbH, DE, Borgstedt6
Abfallwirtschaft Schleswig - Flensburg GmbH, DE, Schleswig6
Abfallwirtschaft Südholstein GmbH - AWSH -, DE, Elmenhorst6
Abwasser und Service Burg, Hochdonn GmbH, DE, Burg6
Abwasser und Service Mittelangeln GmbH, DE, Mittelangeln6
Abwasserbeseitigung Nortorf-Land GmbH, DE, Nortorf6

Stake Name, Location
100.0

Abwasserentsorgung Albersdorf GmbH, DE, Albersdorf6

Stake Name, Location
49.0

AggerEnergie GmbH, DE, Gummersbach1

100.0

Abwasserentsorgung Amt Achterwehr GmbH, DE, Achterwehr6

Abwasserentsorgung Bargteheide GmbH, DE, Bargteheide6

Abwasserentsorgung Bleckede GmbH, DE, Bleckede6

Abwasserentsorgung Brunsbüttel GmbH (ABG), DE, Brunsbüttel6

Abwasserentsorgung Friedrichskoog GmbH, DE, Friedrichskoog6

49.0

27.0

49.0

AggerService GmbH, DE, Gummersbach2

Airco-Klima Service GmbH, DE, Garbsen2

AIRCRAFT Klima-, Wärme- Kälte-, Rohrleitungsbau-Gesellschaft mit
beschränkter Haftung, DE, Wolfenbüttel2
AirSon Engineering AB, SE, Ängelholm2

Alfred Thiel-Gedächtnis-Unterstützungskasse GmbH, DE, Essen6

Abwasserentsorgung Kappeln GmbH, DE, Kappeln6

100.0
25.0 Abwasserentsorgung Kropp GmbH, DE, Kropp6
100.0 Abwasserentsorgung Marne-Land GmbH, DE, Diekhusen-Fahrstedt6
76.1 Abwasserentsorgung Schladen GmbH, DE, Schladen6
50.0 Abwasserentsorgung Schöppenstedt GmbH, DE, Schöppenstedt6
50.0 Abwasserentsorgung Tellingstedt GmbH, DE, Tellingstedt6
49.0 Abwasserentsorgung Uetersen GmbH, DE, Uetersen6
49.0 Abwassergesellschaft Bardowick mbH & Co. KG, DE, Bardowick6
Abwassergesellschaft Bardowick Verwaltungs-GmbH, DE,
49.0
Bardowick6
49.0 Abwassergesellschaft Gehrden mbH, DE, Gehrden6
39.0 Abwassergesellschaft Ilmenau mbH, DE, Melbeck6
33.3 Abwasserwirtschaft Kunstadt GmbH, DE, Burgkunstadt6
49.0 Ackermann & Knorr Ingenieur GmbH, DE, Chemnitz2

25.0
Alsdorf Netz GmbH, DE, Alsdorf6
20.0 Altmärker Solarstrom GmbH, DE, Kusey2
49.0 Amber Newco B.V., NL, ’s-Hertogenbosch1
49.0 Anco Sp. z o.o., PL, Jarocin2
49.0 Artelis S.A., LU, Luxembourg1
25.0 Aton Projects B.V., NL, Schinnen1
49.0 Aton Projects V.O.F., NL, Sittard1
49.0 AV Packaging GmbH, DE, Munich1, 12
49.0
Avacon AG, DE, Helmstedt1, 15
49.0 Avacon Beteiligungen GmbH, DE, Helmstedt1
49.0 Avacon Connect 1. VG GmbH, DE, Helmstedt2
30.0 Avacon Connect 2. VG GmbH, DE, Helmstedt2
100.0 Avacon Connect GmbH, DE, Laatzen1

Stake

62.7

100.0

80.0

100.0

50.0

50.1
100.0
100.0
100.0
90.0
100.0
90.0
0.0

61.4
100.0
100.0
100.0
100.0

1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

228

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→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
Avacon Consult GmbH, DE, Wolfenbüttel2
Avacon Data Center GmbH, DE, Helmstedt2
Avacon Hochdrucknetz GmbH, DE, Helmstedt1
Avacon Natur 4. Beteiligungs-GmbH, DE, Sarstedt2
Avacon Natur 5. Beteiligungs-GmbH, DE, Sarstedt2
Avacon Natur 6. Beteiligungs-GmbH, DE, Sarstedt2
Avacon Natur 7. Beteiligungs-GmbH, DE, Sarstedt2
Avacon Natur GmbH, DE, Sarstedt1
Avacon Netz GmbH, DE, Helmstedt1
Avacon Wasser GmbH, DE, Wolfenbüttel1
AVU Aktiengesellschaft für Versorgungs-Unternehmen, DE,
Gevelsberg4
AWOTEC Gebäude Servicegesellschaft mit beschränkter Haftung, DE,
Saarbrücken6
Bäderbetriebsgesellschaft St. Ingbert mbH, DE, St. Ingbert6
BAG Port 1 GmbH, DE, Regensburg2
Balve Netz GmbH & Co. KG, DE, Balve6
BASF enviaM Solarpark Schwarzheide GmbH, DE, Schwarzheide6
Bayerische Bergbahnen-Beteiligungs-Gesellschaft mbH, DE,
Gundremmingen1

Stake Name, Location
100.0 Bayernwerk Energiebringer GmbH, DE, Regensburg2
100.0 Bayernwerk Energiedienstleistungen Licht GmbH, DE, Regensburg2
100.0 Bayernwerk Energieservice GmbH & Co. KG, DE, Regensburg1
100.0 Bayernwerk Energieservice Verwaltungs GmbH, DE, Regensburg2
100.0 Bayernwerk Energietechnik GmbH, DE, Regensburg1
100.0 Bayernwerk Gashochdrucknetz GmbH & Co. KG, DE, Regensburg1
100.0 Bayernwerk Gashochdrucknetz Verwaltungs GmbH, DE, Regensburg2
100.0 Bayernwerk Natur 1. Beteiligungs-GmbH, DE, Regensburg2
100.0 Bayernwerk Natur GmbH, DE, Unterschleißheim1
94.1 Bayernwerk Netz GmbH, DE, Regensburg1
50.0

Bayernwerk Portfolio Verwaltungs GmbH, DE, Regensburg1

Stake Name, Location
60.0 bildungszentrum energie GmbH, DE, Halle (Saale)2
100.0 Bingen Energie Zukunft GmbH & Co. KG, DE, Bingen am Rhein2
100.0 Bingen Energie Zukunft Verwaltung GmbH, DE, Bingen am Rhein2
100.0 Bioenergie Bad Wimpfen GmbH & Co. KG, DE, Bad Wimpfen2
100.0 Bioenergie Bad Wimpfen Verwaltungs-GmbH, DE, Bad Wimpfen2
100.0 Bioenergie Kirchspiel Anhausen GmbH & Co.KG, DE, Anhausen2
100.0 Bioenergie Kirchspiel Anhausen Verwaltungs-GmbH, DE, Anhausen2
100.0 Bioenergie Merzig GmbH, DE, Merzig2
100.0 Bioerdgas Hallertau GmbH, DE, Wolnzach2
100.0 Bioerdgas Schwandorf GmbH, DE, Schwandorf2
100.0
Biogas Ducherow GmbH, DE, Ducherow2

48.0
Bayernwerk Regio Energie GmbH, DE, Regensburg2
49.0 Bayernwerk Sonnenenergie GmbH, DE, Bayreuth6
BDK Budapesti Dísz- és Közvilágítási Korlátolt Felelősségű Társaság,
100.0
HU, Budapest4
25.1 BETA GmbH, DE, Illingen2
49.0 Beteiligung H1 GmbH, DE, Helmstedt2
100.0
Beteiligung N1 GmbH, DE, Helmstedt2

Biogas Schwalmtal GmbH & Co. KG, DE, Schwalmtal2

100.0
50.0 Biogas Steyerberg GmbH, DE, Steyerberg2
50.0
100.0 Biogas Wassenberg Verwaltungs GmbH, DE, Wassenberg6
100.0 Biogasanlage Schwalmtal GmbH, DE, Schwalmtal2
100.0

Biogasudviklingsselskabet af 2022 ApS, DK, Frederiksberg6

Biogas Wassenberg GmbH & Co. KG, DE, Wassenberg6

Bayerische Elektrizitätswerke GmbH, DE, Augsburg2

100.0

Beteiligungsgesellschaft der Energieversorgungsunternehmen an der
Kerntechnische Hilfsdienst GmbH GbR, DE, Eggenstein-
Leopoldshofen6

Bayerische Energietechnik GmbH, DE, Garching6
Bayerische-Schwäbische Wasserkraftwerke Beteiligungsgesellschaft
mbH, DE, Gundremmingen1
Bayernwerk AG, DE, Regensburg1
Bayernwerk Akademie GmbH, DE, Regensburg2
Bayernwerk Asset- und Projektservice GmbH, DE, Regensburg2

BEW Netze GmbH, DE, Wipperfürth6

49.0 Beteiligungsgesellschaft e.disnatur mbH, DE, Potsdam2
62.2
100.0 BHL Biomasse Heizanlage Lichtenfels GmbH, DE, Lichtenfels6
100.0 BHO Biomasse Heizanlage Obernsees GmbH, DE, Hollfeld6
100.0 BHP Biomasse Heizwerk Pegnitz GmbH, DE, Pegnitz6

36.7 „Biogazownia 1” Sp. z o.o. , PL, Poznan2

100.0 Biomasseverwertung Straubing GmbH, DE, Straubing6
61.0
Bio-Wärme Gräfelfing GmbH, DE, Gräfelfing6
25.1 BMR Windenergie Jülich GmbH & Co. KG, DE, Geilenkirchen6
40.7 BMV Energie Beteiligungs GmbH, DE, Fürstenwalde/Spree2
46.5 BMV Energie GmbH & Co. KG, DE, Fürstenwalde/Spree6

Stake
100.0
100.0
100.0
51.0
100.0
51.0
100.0
90.0
90.0
100.0

80.0

65.5
100.0

32.4
32.4
99.2

50.0

100.0

90.0

40.0
50.0
100.0
25.6

229

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Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income
→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
Bootstraplabs VC Follow-On Fund 2016, US, San Francisco6
BRAINERGY PARK JÜLICH - ENERGIE GmbH, DE, Essen2
Breitband-Infrastrukturgesellschaft Cochem-Zell mbH, DE, Cochem6
bremacon GmbH, DE, Bremen6
Broadband TelCom Power Europe GmbH, DE, Essen2
Broadband TelCom Power, Inc., US, Santa Ana1
Brüggen.E-Netz GmbH & Co. KG, DE, Brüggen6
Brüggen.E-Netz Verwaltungs-GmbH, DE, Brüggen6
BSA Elsteraue GmbH, DE, Bitterfeld-Wolfen2
BTB Bayreuther Thermalbad GmbH, DE, Bayreuth6
BTB Kältetechnik GmbH, DE, Garbsen2
BTB Polska Sp.z.o.o., PL, Poznan2
BTB-Blockheizkraftwerks, Träger- und Betreibergesellschaft mbH
Berlin, DE, Berlin1
BTC Power Cebu Inc., PH, Lapu-Lapu City2
Bützower Wärme GmbH, DE, Bützow6
Carbon Capture Hürth GmbH, DE, Munich2
Cegecom S.A., LU, Luxembourg1
Celle-Uelzen Netz GmbH, DE, Celle1
Celsium A Sp. z o.o., PL, Skarżysko-Kamienna2
Celsium Dom Sp. z o.o., PL, Skarżysko-Kamienna2
Celsium Serwis Sp. z o.o., PL, Skarżysko-Kamienna2
Celsium Sp. z o.o., PL, Skarżysko-Kamienna2
Certified B.V., NL, Utrecht2

CHN Group Ltd, GB, Coventry2

Stake Name, Location
33.3 CHN Contractors Limited, GB, Coventry2
100.0 CHN Electrical Services Limited, GB, Coventry2
20.7
48.0 CHN Special Projects Limited, GB, Coventry2
100.0 Citigen (London) Limited, GB, Coventry1
100.0 Colonia-Cluj-Napoca-Energie S.R.L., RO, Cluj-Napoca6
25.1 COMCO MCS S.A., LU, Capellen2
25.1 Coromatic A/S, DK, Roskilde1
Coromatic AB, SE, Bromma1
83.0
33.3 Coromatic As a Service AB, SE, Bromma2
100.0 Coromatic AS, NO, Kjeller1
99.0 Coromatic Holding AB, SE, Bromma1
Coromatic Tullinge AB, SE, Bromma2
100.0
100.0 Cremlinger Energie GmbH, DE, Cremlingen6
20.0 Crimmitschau-Lichtenstein Netz GmbH & Co. KG, DE, Crimmitschau2
100.0
100.0 Cuculus GmbH, DE, Ilmenau6
97.5 D E M GmbH, DE, Elsdorf2
100.0 DANEB Datennetze Berlin GmbH, DE, Berlin2
100.0 DAT DOEN WIJ B.V., NL, Schaijk2
100.0 DAT DOEN WIJ SCHAIJK B.V., NL, Schaijk2
87.8 DD Turkey Holdings S.à r.l., LU, Luxembourg1
100.0 Delgaz Grid S.A., RO, Târgu Mureş1

Crimmitschau-Lichtenstein Netz Verwaltungs GmbH, DE,
Crimmitschau2

Dortmunder Energie- und Wasserversorgung Gesellschaft mit
beschränkter Haftung, DE, Dortmund5

Stake Name, Location
100.0 Der Solarbauer Borowski GmbH, DE, Essen2
100.0 DES Dezentrale Energien Schmalkalden GmbH, DE, Schmalkalden6
Deutsche Gesellschaft für Wiederaufarbeitung von Kernbrennstoffen
100.0
AG & Co. oHG, DE, Gorleben6
100.0 Dexas GmbH, DE, Hanover2
100.0 DigiKoo GmbH, DE, Essen2
33.3 DON-Stromnetz GmbH & Co. KG, DE, Donauwörth6
100.0 DON-Stromnetz Verwaltungs GmbH, DE, Donauwörth6
100.0 Dorsten Netz GmbH & Co. KG, DE, Dorsten6
100.0
100.0 Drava CHP Plant d.o.o., HR, Zagreb2
100.0 Drivango GmbH i. L., DE, Düsseldorf2
100.0 DUKO Energie s.r.o., CZ, Hlinsko6
100.0
49.0 DZT Ciepło Sp. z o.o., PL, Świebodzice2
81.0 DZT Południe Sp. z o.o., PL, Świebodzice2
100.0
21.8 DZT Service Sp. z o.o., PL, Świebodzice2
99.9 E WIE EINFACH GmbH, DE, Cologne1
100.0 e.dialog Netz GmbH, DE, Potsdam2
100.0 E.DIS AG, DE, Fürstenwalde/Spree1
100.0 E.DIS Bau- und Energieservice GmbH, DE, Fürstenwalde/Spree2
100.0 E.DIS Netz GmbH, DE, Fürstenwalde/Spree1
56.5 e.discom Telekommunikation GmbH, DE, Eberswalde1

DZT Service & Heat Sp. z o.o., PL, Świebodzice2

Dutchdelta Finance S.à r.l., LU, Luxembourg1

Stake
100.0
49.9
42.5
100.0
100.0
49.0
49.0
49.0
39.9
100.0
100.0
49.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
67.0
100.0
100.0
100.0

230

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Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)
Name, Location
e.disnatur Erneuerbare Energien GmbH, DE, Potsdam1
e.disnatur21 Windpark GmbH & Co. KG, DE, Potsdam2
e.distherm Energielösungen GmbH, DE, Potsdam1
E.ON (Cross-Border) Pension Trustees Limited, GB, Coventry2
E.ON 9. Verwaltungs GmbH, DE, Essen2
E.ON 11. Verwaltungs GmbH, DE, Essen2
E.ON 45. Verwaltungs GmbH, DE, Essen2
E.ON 46. Verwaltungs GmbH, DE, Essen2
E.ON 47. Verwaltungs GmbH, DE, Essen2
E.ON 51. Verwaltungs GmbH, DE, Essen2
E.ON 52. Verwaltungs GmbH, DE, Essen2
E.ON 53. Verwaltungs GmbH, DE, Essen2
E.ON 54. Verwaltungs GmbH, DE, Essen2
E.ON 55. Verwaltungs GmbH, DE, Essen2
E.ON 57. Verwaltungs GmbH, DE, Essen2
E.ON 59. Verwaltungs GmbH, DE, Essen2
E.ON 60. Verwaltungs GmbH, DE, Essen2
E.ON 61. Verwaltungs GmbH, DE, Essen2
E.ON 62. Verwaltungs GmbH, DE, Essen2
E.ON 63. Verwaltungs GmbH, DE, Essen2
E.ON Accounting Solutions GmbH, DE, Regensburg1, 8
E.ON Asist Complet S.A., RO, Târgu Mureş2
E.ON Bayern Verwaltungs AG, DE, Essen2

Stake Name, Location
100.0 E.ON Beteiligungen GmbH, DE, Essen1, 8
100.0 E.ON Beteiligungsholding GmbH, DE, Essen1, 8
100.0 E.ON Bioerdgas GmbH, DE, Essen1
100.0 E.ON Business Services Cluj S.R.L., RO, Cluj-Napoca1
100.0 E.ON Business Services Iași S.A., RO, Bucharest2
100.0 E.ON Business Solutions Deutschland GmbH, DE, Essen1
100.0 E.ON Business Solutions GmbH, DE, Essen1
100.0 E.ON Business Solutions S.r.l., IT, Milan1
100.0 E.ON Business Solutions SAS, FR, Levallois-Perret2
100.0 E.ON Česká republika, s.r.o., CZ, České Budějovice1
100.0 E.ON Connecting Energies Limited, GB, Coventry1
100.0 E.ON Control Solutions Limited, GB, Coventry1
100.0 E.ON Country Hub Germany GmbH, DE, Berlin1, 8
100.0 E.ON Danmark A/S, DK, Frederiksberg1
100.0 E.ON Dél-dunántúli Áramhálózati Zrt., HU, Pécs1
100.0 E.ON Dél-dunántúli Gázhálózati Zrt., HU, Pécs1
100.0 E.ON Dialog S.R.L., RO, Șelimbăr2
100.0 E.ON Digital Technology GmbH, DE, Hanover1
100.0 E.ON Digital Technology Hungary Kft., HU, Budapest2
100.0 E.ON Distribucija plina d.o.o., HR, Sveta Nedelja1
100.0 E.ON Drive AB, SE, Malmö2
97.9 E.ON Drive ApS, DK, Frederiksberg2
100.0 E.ON Drive Austria GmbH, AT, Vienna2

Stake Name, Location
100.0 E.ON Drive France SAS, FR, Levallois-Perret2
100.0 E.ON Drive GmbH, DE, Essen1
100.0 E.ON Drive Infrastructure CZ s.r.o., CZ, České Budějovice2
100.0 E.ON Drive Infrastructure Denmark ApS, DK, Søborg2
100.0 E.ON Drive Infrastructure Germany GmbH, DE, Essen2
100.0 E.ON Drive Infrastructure GmbH, DE, Essen1, 8
100.0 E.ON Drive Infrastructure Hungary Kft., HU, Budapest2
100.0 E.ON Drive Infrastructure Italy S.r.l., IT, Milan2
100.0 E.ON Drive Infrastructure Romania S.R.L, RO, Bucharest2
100.0 E.ON Drive Infrastructure UK Limited, GB, Coventry2
100.0 E.ON Drive Solutions UK Limited, GB, Coventry2
100.0 E.ON edis energia Sp. z o.o., PL, Warsaw1
100.0 E.ON Energi HoldCo AB, SE, Malmö1
100.0 E.ON Energia S.p.A., IT, Milan1
100.0 E.ON Energiamegoldások Kft., HU, Budapest1
100.0 E.ON Energiatároló Korlátolt Felelősségű Társaság, HU, Budapest1
100.0 E.ON Energiatermelő Kft., HU, Budapest1
100.0 E.ON Energidistribution AB, SE, Malmö1
100.0 E.ON Energie 38. Beteiligungs-GmbH, DE, Munich1, 8
100.0 E.ON Energie AG, DE, Düsseldorf1, 8
100.0 E.ON Energie Deutschland GmbH, DE, Munich1
100.0 E.ON Energie Deutschland Holding GmbH, DE, Munich1
100.0 E.ON Energie Dialog GmbH, DE, Potsdam2

Stake
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.9
100.0

231

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Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
E.ON Energie Österreich GmbH, AT, Vienna1
E.ON Energie România S.A., RO, Târgu Mureş1
E.ON Energie, a.s., CZ, České Budějovice1
E.ON Energiinfrastruktur AB, SE, Malmö1
E.ON Energija d.o.o., HR, Zagreb1
E.ON Energilösningar AB, SE, Malmö1
E.ON ENERGY COMMUNITIES & NETWORK SOLUTIONS, S.L., ES,
Santa Cruz de Tenerife2
E.ON Energy ECO Installations Limited, GB, Coventry1
E.ON Energy Gas (Eastern) Limited, GB, Coventry2
E.ON Energy Gas (Northwest) Limited, GB, Coventry2
E.ON Energy Infrastructure Solutions d.o.o., HR, Zagreb1
E.ON Energy Infrastructure Solutions d.o.o., SI, Ljubljana1
E.ON Energy Installation Services Limited, GB, Coventry1
E.ON Energy Markets GmbH, DE, Essen1
E.ON Energy Projects GmbH, DE, Munich1
E.ON Energy Solutions GmbH, DE, Essen1
E.ON Energy Solutions Limited, GB, Coventry1
E.ON Energy Solutions, s.r.o., CZ, České Budějovice2
E.ON Észak-dunántúli Áramhálózati Zrt., HU, Győr1
E.ON Fastigheter Sverige AB, SE, Malmö1
E.ON Finanzanlagen GmbH, DE, Düsseldorf1, 8
E.ON Finanzholding Beteiligungs-GmbH, DE, Berlin2
E.ON Finanzholding SE & Co. KG, DE, Essen1, 8
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

Stake Name, Location
100.0 E.ON First Future Energy Holding B.V., NL, ’s-Hertogenbosch1
68.2 E.ON Foton Sp. z o.o., PL, Warsaw1
100.0 E.ON Gas Mobil GmbH, DE, Essen2
100.0 E.ON Gashandel Sverige AB, SE, Malmö2
100.0 E.ON Gastronomie GmbH, DE, Essen1, 8
100.0 E.ON Gazdasági Szolgáltató Kft., HU, Győr1
100.0
E.ON Grid Solutions GmbH, DE, Hamburg1
100.0 E.ON Group Innovation GmbH, DE, Essen2
100.0 E.ON Gruga Geschäftsführungsgesellschaft mbH, DE, Düsseldorf1, 8
100.0 E.ON Gruga Objektgesellschaft mbH & Co. KG, DE, Essen1, 8
100.0 E.ON Grund&Boden Beteiligungs GmbH, DE, Essen1
100.0 E.ON Grund&Boden GmbH & Co. KG, DE, Essen1, 8
100.0 E.ON Home AB, SE, Malmö2
100.0 E.ON Hrvatska d.o.o., HR, Zagreb1
100.0 E.ON Hungária Energetikai ZRt., HU, Budapest1
100.0 E.ON Hydrogen GmbH, DE, Essen1, 8
100.0 E.ON Iberia Holding GmbH, DE, Düsseldorf1, 8
100.0 E.ON impulse GmbH, DE, Essen1, 8
100.0 E.ON Inhouse Consulting GmbH, DE, Essen2
100.0 E.ON Innovation Co-Investments Inc., US, Wilmington1
100.0 E.ON Innovation Hub S.A., RO, Bucharest2
100.0 E.ON Insurance Services GmbH, DE, Essen2
100.0 E.ON International Finance B.V., NL, ’s-Hertogenbosch1

Stake Name, Location
100.0 E.ON International GmbH, DE, Essen2
100.0 E.ON International Participations N.V., NL, ’s-Hertogenbosch1
100.0 E.ON Israel Ltd., IL, Herzliya2
100.0 E.ON IT UK Limited, GB, Coventry2
100.0 E.ON Italia S.p.A., IT, Milan1
100.0 E.ON Közép-dunántúli Gázhálózati Zrt., HU, Nagykanizsa1
100.0
100.0 E.ON Mälarkraft Värme AB, SE, Örebro1
100.0 E.ON MyEnergy Kft., HU, Budapest1
100.0 E.ON NA Capital Inc., US, Wilmington1
100.0 E.ON Next Energy Limited, GB, Coventry1
100.0 E.ON Nord Sverige AB, SE, Malmö2
100.0 E.ON Nordic AB, SE, Malmö1
100.0 E.ON Norge AS, NO, Stavanger2
75.0 E.ON One GmbH, DE, Essen2
100.0 E.ON Pensionsfonds AG, DE, Essen2
100.0 E.ON Pensionsfonds Holding GmbH, DE, Essen2
100.0 E.ON Perspekt GmbH, DE, Düsseldorf2
100.0 E.ON Plin d.o.o., HR, Zagreb1
100.0 E.ON Polska Development Sp. z o.o., PL, Warsaw2
100.0 E.ON Polska IT Support Sp. z o.o., PL, Warsaw1
100.0 E.ON Polska Operations Sp. z o.o., PL, Warsaw1
100.0 E.ON Polska S.A., PL, Warsaw1

100.0
99.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

Stake
100.0
100.0
100.0
100.0
100.0
99.9

E.ON Kundsupport Sverige AB, SE, Malmö1

232

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Contents

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
E.ON Polska Solutions Sp. z o.o., PL, Warsaw1
E.ON Portfolio Services GmbH, DE, Munich2
E.ON Portfolio Solutions GmbH, DE, Munich1

E.ON Power Plants Belgium BV, BE, Mechelen1

E.ON Produktion Danmark A/S, DK, Frederiksberg1
E.ON Produzione S.p.A., IT, Milan1
E.ON Project Earth Limited, GB, Coventry1
E.ON RAG-Beteiligungsgesellschaft mbH, DE, Düsseldorf1
E.ON Real Estate GmbH, DE, Essen1
E.ON Rhein-Ruhr Werke GmbH, DE, Essen2
E.ON România S.A., RO, Târgu Mureş1
E.ON Ruhrgas GPA GmbH, DE, Essen1, 8

E.ON Ruhrgas Portfolio GmbH, DE, Essen1, 8

Stake Name, Location
100.0 E.ON Technical Service S.p.A., IT, Milan2
100.0 E.ON TowerCo GmbH, DE, Markkleeberg2
100.0 E.ON Ügyfélszolgálati Kft., HU, Budapest1
100.0
E.ON UK CHP Limited, GB, Coventry1
100.0 E.ON UK EIS Holdings Limited, GB, Coventry2
100.0 E.ON UK Energy Markets Limited, GB, Coventry1
100.0 E.ON UK Energy Services Limited, GB, Coventry2
100.0 E.ON UK Heat Limited, GB, Coventry1
100.0 E.ON UK Holding Company Limited, GB, Coventry1
100.0 E.ON UK Industrial Shipping Limited, GB, Coventry2
100.0 E.ON UK Infrastructure Services Limited, GB, Coventry1
100.0 E.ON UK Pension Trustees Limited, GB, Coventry2
100.0
100.0 E.ON UK Property Services Limited, GB, Coventry2
100.0 E.ON UK PS Limited, GB, Coventry2
100.0 E.ON UK Steven’s Croft Limited, GB, Coventry1
100.0 E.ON UK Trustees Limited, GB, Coventry2
100.0 E.ON US Corporation, US, Wilmington1
100.0 E.ON US Holding GmbH, DE, Düsseldorf1, 8
99.0 E.ON Varme Danmark ApS, DK, Frederiksberg1
100.0 E.ON Vermögensverwaltungs GmbH, DE, Essen1, 8
100.0 E.ON Verwaltungs AG Nr. 1, DE, Munich2
100.0 E.ON Verwaltungs GmbH, DE, Essen1, 8

E.ON UK plc, GB, Coventry1

East Midlands Electricity Share Scheme Trustees Limited, GB,
Coventry2

Stake Name, Location
100.0 E.ON-CAPNET S.R.L., IT, Milan2
100.0 E3 Haustechnik GmbH, DE, Magdeburg2
100.0 E4A B.V., NL, Schaijk2
100.0
100.0 EBERnetz GmbH & Co. KG, DE, Grafing b. Munich6
100.0 EBY Immobilien GmbH & Co KG, DE, Regensburg2
100.0 EBY Port 3 GmbH, DE, Regensburg1
100.0 ECO2 Solutions Group Limited, GB, Kidderminster4
100.0 Economy Power Limited, GB, Coventry2
100.0 EDRI Poland Sp. z o.o., PL, Warsaw2
100.0 EDRI Sweden AB, SE, Malmö2
100.0 EEL Erneuerbare Energien Lausitz GmbH & Co. KG, DE, Cottbus6
100.0
100.0 EFG Erdgas Forchheim GmbH, DE, Forchheim6
100.0 EFR GmbH, DE, Munich6
100.0 EG.D Montáže, s.r.o., CZ, České Budějovice2
100.0 EG.D, a.s., CZ, Brno1
100.0 EIS Solar Mottola S.r.l., IT, Brindisi2
100.0 ElbEnergie GmbH, DE, Seevetal1
100.0 ELE - GEW Photovoltaikgesellschaft mbH, DE, Gelsenkirchen6
100.0 ELE Verteilnetz GmbH, DE, Gelsenkirchen1
100.0 Elektrizitätsnetzgesellschaft Grünwald mbH & Co. KG, DE, Grünwald6
100.0 Elektrizitätswerk Heinrich Schirmer GmbH, DE, Schauenstein6

EES Erneuerbare Energien Schnaudertal GmbH & Co. KG, DE,
Meuselwitz2

Stake
100.0
100.0
70.0

100.0
49.0
100.0
100.0
49.0
100.0
100.0
100.0
50.0

100.0
24.9
39.9
51.0
100.0
51.0
100.0
49.0
100.0
49.0
49.0

E.ON Sechzehnte Verwaltungs GmbH, DE, Düsseldorf1, 8
E.ON Service GmbH, DE, Essen2
E.ON Slovensko, a.s., SK, Bratislava1
E.ON Software Development SRL, RO, Bucharest2
E.ON Solar Energy Infrastructure Solutions Italy S.r.l., IT, Milan2
E.ON Solar GmbH, DE, Essen2
E.ON Solarpark Gerdshagen GmbH & Co. KG, DE, Munich2
E.ON Solutions GmbH, DE, Essen1
E.ON Stiftung gGmbH, DE, Essen2
E.ON Sverige AB, SE, Malmö1
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

233

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Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location

Elektrizitätswerk Landsberg Gesellschaft mit beschränkter Haftung,
DE, Landsberg am Lech2

Elektrizitätswerk Schwandorf GmbH, DE, Schwandorf2

Elektroenergetické datové centrum, a.s., CZ, Prague6

Elektro-Klaus GmbH, DE, Waldbröl2

ELE-RAG Montan Immobilien Erneuerbare Energien GmbH, DE,
Bottrop6
ELE-Scholven-Wind GmbH, DE, Gelsenkirchen6
Elmregia GmbH, DE, Schöningen6

ELMŰ Hálózati Elosztó Kft., HU, Budapest1
elvah GmbH, DE, Essen2
EMG Energimontagegruppen AB, SE, Karlshamn2

Stake Name, Location
100.0

energielösung GmbH, DE, Regensburg2

100.0

25.0

100.0

Energiemontagen Süd GmbH & Co. KG, DE, Maisach6

Energiemontagen Süd Verwaltungs GmbH, DE, Maisach6

energienatur Gesellschaft für Erneuerbare Energien mbH, DE,
Siegburg6
Energienetze Bayern GmbH, DE, Regensburg1

50.0
30.0 Energienetze Berlin GmbH, DE, Berlin1
49.0

Energienetze Großostheim GmbH & Co. KG, DE, Großostheim6

100.0
Energienetze Holzwickede GmbH, DE, Holzwickede6
100.0 Energienetze Schaafheim GmbH, DE, Regensburg2
100.0

Energiepark Jülich-Ost WP JO II GmbH & Co. KG, DE,
Mönchengladbach2
Energiepartner Dörth GmbH, DE, Dörth6

Stake Name, Location
100.0

Energieversorgung Beckum GmbH & Co. KG, DE, Beckum (Westf.)6

25.0

44.0

Energieversorgung Beckum Verwaltungs-GmbH, DE, Beckum
(Westf.)6
Energieversorgung Buching-Trauchgau (EBT) Gesellschaft mit
beschränkter Haftung, DE, Halblech6
Energieversorgung Guben GmbH, DE, Guben5

Energieversorgung Horstmar/Laer GmbH & Co. KG, DE, Horstmar6

100.0
100.0 Energieversorgung Hürth GmbH, DE, Hürth6
25.1

Energieversorgung Kranenburg Netze GmbH & Co. KG, DE,
Kranenburg6
Energieversorgung Kranenburg Netze Verwaltungs GmbH, DE,
Kranenburg6

25.1
100.0 Energieversorgung Marienberg GmbH, DE, Marienberg6
100.0

Energieversorgung Niederkassel GmbH & Co. KG, DE, Niederkassel6

Stake

34.0

50.0

45.0

49.0
24.9

25.1

25.1
49.0

49.0

Energieversorgung Oberhausen Aktiengesellschaft, DE, Oberhausen5,
11

Emscher Lippe Energie GmbH, DE, Gelsenkirchen1, 9
Energetyka Cieplna Opolszczyzny S.A., PL, Opole5
Energie BOL GmbH, DE, Ottersweier6
Energie Inspectie B.V., NL, Leeuwarden6
Energie Mechernich GmbH & Co. KG, DE, Mechernich6
Energie Mechernich Verwaltungs-GmbH, DE, Mechernich6
Energie Schmallenberg GmbH, DE, Schmallenberg6
Energie und Wasser Potsdam GmbH, DE, Potsdam5
Energie und Wasser Wahlstedt/Bad Segeberg GmbH & Co. KG (ews),
DE, Bad Segeberg6
Energie Vorpommern GmbH, DE, Trassenheide6
Energiedirect B.V., NL, ’s-Hertogenbosch1
Energiegesellschaft Leimen GmbH & Co.KG, DE, Leimen2
Energiegesellschaft Leimen Verwaltungsgesellschaft mbH, DE,
Leimen2
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

49.9
46.7 Energiepartner Elsdorf GmbH, DE, Elsdorf6
49.9 Energiepartner Hermeskeil GmbH, DE, Hermeskeil6
48.0 Energiepartner Kerpen GmbH, DE, Kerpen6
49.0
49.0 Energiepartner Projekt GmbH, DE, Essen6
44.0 Energiepartner Solar Kreuztal GmbH, DE, Kreuztal6
35.0 Energie-Pensions-Management GmbH, DE, Hanover2
50.1
49.0 EnergieRevolte GmbH, DE, Düren2
100.0 Energieversorgung Alzenau GmbH (EVA), DE, Alzenau6
74.9 Energieversorgung Bad Bentheim GmbH & Co. KG, DE, Bad Bentheim6
Energieversorgung Bad Bentheim Verwaltungs-GmbH, DE, Bad
74.9
Bentheim6

49.0
40.0 Energieversorgung Putzbrunn GmbH & Co. KG, DE, Putzbrunn6
20.0 Energieversorgung Putzbrunn Verwaltungs GmbH, DE, Putzbrunn6
49.0 Energieversorgung Sehnde GmbH, DE, Sehnde6
49.0
49.0 Energieversorgung Vechelde GmbH & Co. KG, DE, Vechelde6
40.0 Energiewacht B.V., NL, Zwolle1
70.0 Energiewacht Facilities B.V., NL, Zwolle1
49.0
Energiewacht West Nederland B.V., NL, Rotterdam1
100.0 Energie-Wende-Garching GmbH & Co. KG, DE, Garching6
69.5 Energie-Wende-Garching Verwaltungs-GmbH, DE, Garching6
25.1 Energiewerke Isernhagen GmbH, DE, Isernhagen6
25.1

EnergieRegion Taunus - Goldener Grund - GmbH & Co. KG, DE, Bad
Camberg6

Energieversorgung Timmendorfer Strand GmbH & Co. KG, DE,
Timmendorfer Strand2

Energiewerke Osterburg GmbH, DE, Osterburg (Altmark)6

Energiepartner Niederzier GmbH, DE, Niederzier6

100.0
50.0
50.0
49.0

51.0
49.0
100.0
100.0

10.0
50.0
50.0
30.0

49.0

234

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
Energiewerke Waldbröl GmbH, DE, Waldbröl2
EnergieWonen B.V., NL, Almere1
energis GmbH, DE, Saarbrücken1
energis-Netzgesellschaft mbH, DE, Saarbrücken1
Energy Ventures GmbH, DE, Saarbrücken2
energy4u GmbH & Co. KG, DE, Siegburg6
Enerjisa Enerji A.Ş., TR, Istanbul4
Enerjisa Üretim Santralleri A.Ş., TR, Istanbul4
Enervolution GmbH, DE, Bochum2
ENL Energiepark Niederlausitz GmbH & Co. KG, DE, Lützen2
ENNI Energienetze Rheinberg GmbH & Co. KG, DE, Rheinberg6
ENRO Ludwigsfelde Netz GmbH, DE, Ludwigsfelde2
Ense Stromnetz GmbH & Co. KG, DE, Ense6
envelio GmbH, DE, Cologne2
envia Mitteldeutsche Energie AG, DE, Chemnitz1
envia SERVICE GmbH, DE, Cottbus1

envia TEL GmbH, DE, Markkleeberg1
envia THERM GmbH, DE, Bitterfeld-Wolfen1
enviaM Beteiligungsgesellschaft Chemnitz GmbH, DE, Chemnitz1

Stake Name, Location
100.0 EPE Energiepark Management GmbH, DE, Markkleeberg2
100.0 eprimo GmbH, DE, Neu-Isenburg1
71.9 EPS Polska Holding Sp. z o.o., PL, Warsaw1
100.0 EQUANS Energy Solutions B.V., NL, Bunnik2
100.0 Erdgasversorgung Industriepark Leipzig Nord GmbH, DE, Leipzig6
49.0 Erdgasversorgung Schwalmtal GmbH & Co. KG, DE, Viersen6
40.0 Erdgasversorgung Schwalmtal Verwaltungs-GmbH, DE, Viersen6
50.0 e-regio GmbH & Co. KG, DE, Euskirchen5
100.0 Erneuerbare Energien Blankenburg GmbH, DE, Blankenburg6
100.0 Erneuerbare Energien Rheingau-Taunus GmbH, DE, Bad Schwalbach6
18.0 ErwärmBAR GmbH, DE, Eberswalde6
100.0 ESCo Heating & Cooling S.r.l., IT, Milan6
25.1 eShare.one GmbH, DE, Dortmund6
75.0 ESK GmbH, DE, Dortmund2
57.9 ESN EnergieSystemeNord GmbH, DE, Schwentinental2
100.0

ESN Sicherheit und Zertifizierung GmbH, DE, Schwentinental2

Essent Direct Sales B.V., NL, ’s-Hertogenbosch1

100.0
100.0 Essent Energy Group B.V., NL, ’s-Hertogenbosch1
100.0

Essent Energy Infrastructure Solutions B.V., NL, ’s-Hertogenbosch1

Stake Name, Location
100.0 Essent Retail Energie B.V., NL, ’s-Hertogenbosch1
100.0 Essent Sales Portfolio Management B.V., NL, ’s-Hertogenbosch1
100.0 Ev Infra Norway AS, NO, Oslo2
100.0 evd energieversorgung dormagen GmbH, DE, Dormagen6
50.0 EVG Energieversorgung Gemünden GmbH, DE, Gemünden am Main6
50.0 EVIP GmbH, DE, Bitterfeld-Wolfen1
50.0 evm Windpark Höhn GmbH & Co. KG, DE, Höhn6
40.5 EWIS BV, NL, Ede1
50.0 EWR Aktiengesellschaft, DE, Worms5, 11
25.1 EWR Dienstleistungen GmbH & Co. KG, DE, Worms5
50.0 EWR GmbH, DE, Remscheid5
50.0 ews Verwaltungsgesellschaft mbH, DE, Bad Segeberg6
20.0 EWV Baesweiler GmbH & Co. KG, DE, Baesweiler6
100.0 EWV Baesweiler Verwaltungs GmbH, DE, Baesweiler6
55.0 EWV Energie- und Wasser-Versorgung GmbH, DE, Stolberg/RhId.1
EZV Energie- und Service GmbH & Co. KG Untermain, DE, Wörth am
100.0
Main6
EZV Energie- und Service Verwaltungsgesellschaft mbH, DE, Wörth
am Main6

100.0
100.0 FAMIS GmbH, DE, Saarbrücken1
100.0

Fernwärmeversorgung Freising Gesellschaft mit beschränkter
Haftung (FFG), DE, Freising6
Fernwärmeversorgung Saarlouis- Steinrausch InvestitionsgeselIschaft
mbH, DE, Saarlouis2

Stake
100.0
100.0
100.0
49.0
49.0
100.0
33.2
100.0
1.3
25.0
20.0
50.2
45.0
45.0
53.7

28.9

28.8
100.0

50.0

enviaM Beteiligungsgesellschaft mbH, DE, Essen1
enviaM Neue Energie Management GmbH, DE, Lützen2
enviaM Zweite Neue Energie Management GmbH, DE, Lützen2
EPE Energiepark Elbeland GmbH & Co. KG, DE, Markkleeberg2
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

100.0
100.0 Fernwärmeversorgung Zwönitz GmbH (FVZ), DE, Zwönitz6
100.0 FEV Europe GmbH, DE, Essen1, 8
100.0 FEV Future Energy Ventures Israel Ltd, IL, Herzliya2

100.0
100.0 Essent IT B.V., NL, ’s-Hertogenbosch1
100.0 Essent N.V., NL, ’s-Hertogenbosch1
100.0 Essent Nederland B.V., NL, ’s-Hertogenbosch1

Essent Energy Next Solutions B.V., NL, ’s-Hertogenbosch1

100.0
50.0
100.0
100.0

235

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income
→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
FEV US LLC, US, Palo Alto1
FEVA Infrastrukturgesellschaft mbH, DE, Wolfsburg6
FITAS Verwaltung GmbH & Co. Dritte Vermietungs-KG, DE, Pullach
im Isartal2
FITAS Verwaltung GmbH & Co. REGIUM-Objekte KG, DE, Pullach im
Isartal2
Free Electrons LLC, US, Palo Alto2

Freiberger Stromversorgung GmbH (FSG), DE, Freiberg6
FSO GmbH & Co. KG, DE, Oberhausen4
FSO Verwaltungs-GmbH, DE, Oberhausen6

Fundacja E.ON w Polsce, PL, Warsaw2
Future Energy Ventures Management GmbH, DE, Essen1, 8
G&L Gastro-Service GmbH, DE, Augsburg6
Gas- und Wasserwerke Bous - Schwalbach GmbH, DE, Bous5
GASAG AG, DE, Berlin5
Gasgesellschaft Kerken Wachtendonk mbH, DE, Kerken6

GasLINE Telekommunikationsnetz-Geschäftsführungsgesellschaft
deutscher Gasversorgungsunternehmen mbH, DE, Straelen6
GasLINE Telekommunikationsnetzgesellschaft deutscher
Gasversorgungsunternehmen mbH & Co. KG, DE, Straelen5
Gas-Netzgesellschaft Bedburg GmbH & Co. KG, DE, Bedburg6
Gas-Netzgesellschaft Elsdorf GmbH & Co. KG, DE, Elsdorf6

Gas-Netzgesellschaft Kolpingstadt Kerpen GmbH & Co. KG, DE,
Kerpen6
Gas-Netzgesellschaft Kreisstadt Bergheim GmbH & Co. KG, DE,
Bergheim6
Gasnetzgesellschaft Laatzen-Süd mbH, DE, Laatzen6
Gasnetzgesellschaft Mettmann mbH & Co. KG, DE, Mettmann6

Gas-Netzgesellschaft Rheda-Wiedenbrück Verwaltungs-GmbH, DE,
Rheda-Wiedenbrück6

Stake Name, Location
100.0
49.0 Gasnetzgesellschaft Warburg GmbH & Co. KG, DE, Warburg6
90.0

Gasnetzgesellschaft Windeck mbH & Co. KG, DE, Windeck6

Gemeinschaftskernkraftwerk Grohnde Management GmbH, DE,
Emmerthal2

Stake Name, Location
49.0
49.0 Gemeinschaftskernkraftwerk Isar 2 GmbH, DE, Essenbach2
49.9

Gemeinschaftskraftwerk Weser GmbH & Co. oHG., DE, Emmerthal1

90.0

Gasnetzgesellschaft Wörrstadt mbH & Co. KG, DE, Saulheim6

49.0

Geotermisk Operatørselskab A/S, DK, Kirke Saby2

100.0

Gasnetzgesellschaft Wörrstadt Verwaltung mbH, DE, Saulheim6

49.0

Gasversorgung Bad Rodach GmbH, DE, Bad Rodach6
30.0
50.0 Gasversorgung Ebermannstadt GmbH, DE, Ebermannstadt6
50.0

Gasversorgung im Landkreis Gifhorn GmbH, DE, Gifhorn1

Gasversorgung Unterfranken Gesellschaft mit beschränkter Haftung,
DE, Würzburg5

100.0
100.0 Gasversorgung Wismar Land GmbH, DE, Lübow6
35.0 Gelsenberg GmbH & Co. KG, DE, Düsseldorf1, 8
49.0 Gelsenberg Verwaltungs GmbH, DE, Düsseldorf2
36.9 Gemeindewerke Bissendorf Netze GmbH & Co. KG, DE, Bissendorf6
Gemeindewerke Bissendorf Netze Verwaltungs-GmbH, DE,
49.0
Bissendorf6
Gemeindewerke Everswinkel GmbH, DE, Everswinkel6

20.0

Gemeindewerke Gräfelfing GmbH & Co. KG, DE, Gräfelfing6

20.0
25.1 Gemeindewerke Gräfelfing Verwaltungs GmbH, DE, Gräfelfing6
25.1

Gemeindewerke Namborn, Gesellschaft mit beschränkter Haftung,
DE, Namborn6
Gemeindewerke Uetze GmbH, DE, Uetze6

25.1

Gemeindewerke Wedemark GmbH, DE, Wedemark6

25.1
49.0 Gemeindewerke Wietze GmbH, DE, Wietze6
25.1

Gemeinnützige Gesellschaft zur Förderung des E.ON Energy Research
Center mbH, DE, Aachen6
Gemeinschaftskernkraftwerk Grohnde GmbH & Co. oHG, DE,
Emmerthal1

Geothermie-Wärmegesellschaft Braunau-Simbach mbH, AT, Braunau
am Inn6
Gesellschaft für Energie und Klimaschutz Schleswig-Holstein GmbH,
DE, Kiel6

50.0
50.0 Get Energy Solutions Szolgáltató Kft., HU, Budapest2
95.0

Gewerkschaft Hermann V Gesellschaft mit beschränkter Haftung, DE,
Essen2
GfB, Gesellschaft für Baudenkmalpflege mbH, DE, Idar-Oberstein6

49.0
49.0 GfS Gesellschaft für Simulatorschulung mbH i. L., DE, Essen6
100.0 Gichtgaskraftwerk Dillingen GmbH & Co. KG, DE, Dillingen6
100.0 GISA GmbH, DE, Halle (Saale)6
49.0 GKB Gesellschaft für Kraftwerksbeteiligungen mbH, DE, Cottbus2
49.0

GkD Gesellschaft für kommunale Dienstleistungen mbH, DE, Cologne6

45.0

Globalis Industrial Services GmbH, DE, Heidelberg6

GNEE Gesellschaft zur Nutzung erneuerbarer Energien mbH Freisen,
DE, Freisen6

49.0
49.0 GNS Gesellschaft für Nuklear-Service mbH, DE, Essen7
49.0

GOLLIPP Bioerdgas GmbH & Co. KG, DE, Gollhofen6

49.0

GOLLIPP Bioerdgas Verwaltungs GmbH, DE, Gollhofen6

Gottburg Energie- und Wärmetechnik GmbH & Co. KG i. L., DE, Leck6

49.0
49.0 Gottburg Verwaltungs GmbH i. L., DE, Leck6
50.0

Green Eight d.o.o., HR, Zagreb2

Stake
83.2
75.0
66.7

51.6

20.0

33.3
100.0
66.7

20.0
41.7
25.2
23.9
100.0
50.0

49.0

49.0
48.0
50.0

50.0

49.9
49.9
100.0

Gas-Netzgesellschaft Rheda-Wiedenbrück GmbH & Co. KG, DE,
Rheda-Wiedenbrück6
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

GREEN GECCO Beteiligungsgesellschaft mbH & Co. KG, DE, Troisdorf6

100.0

49.0

20.7

236

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Stake Name, Location
20.7

HanseWerk Natur GmbH, DE, Quickborn1

Stake Name, Location
100.0

Hub2Go GmbH, DE, Hamburg6

Name, Location

GREEN GECCO Beteiligungsgesellschaft-Verwaltungs GmbH, DE,
Troisdorf6
GREEN Gesellschaft für regionale und erneuerbare Energie mbH, DE,
Stolberg/RhId.6
Green Sky Energy Limited, GB, Coventry1
Green Solar Herzogenrath GmbH, DE, Herzogenrath6
Green Urban Energy GmbH, DE, Berlin6
Greenergetic GmbH i. L., DE, Bielefeld2
greenited GmbH, DE, Hamburg6
Greenlab Skive Biogas ApS, DK, Frederiksberg6
Greenplug GmbH, DE, Hamburg2
greenXmoney.com GmbH i. L., DE, Neu-Ulm2
Greinke Verwaltungs GmbH, DE, Hohenhameln2
gridX GmbH, DE, Aachen2
GrønGas Partner A/S, DK, Hirtshals6
Grüne Quartiere GmbH, DE, Gelsenkirchen6

Hary Installationstechnik GmbH, DE, Schiffweiler2

49.2
100.0 Harzwasserwerke GmbH, DE, Hildesheim5
45.0 HaseNetz GmbH & Co. KG, DE, Gehrde6
50.0 Havelstrom Zehdenick GmbH, DE, Zehdenick6
100.0 HAW 1. Beteiligungsgesellschaft mbH, DE, Quickborn2
50.0 HAzwei 1. Beteiligungsgesellschaft mbH, DE, Hanover1
50.0 HAzwei 2. Beteiligungsgesellschaft mbH, DE, Hanover2
100.0 HAzwei 3. Beteiligungsgesellschaft mbH, DE, Hanover2
100.0 HAzwei GmbH, DE, Hanover1
85.1 HCL Netze GmbH & Co. KG, DE, Herzebrock-Clarholz6
100.0 Heimatenergie Burgebrach GmbH, DE, Unterschleißheim2
50.0 Heizkraftwerk Zwickau Süd GmbH & Co. KG, DE, Zwickau6
50.0

Heizungs- und Sanitärbau WIJA GmbH, DE, Bad Neuenahr-Ahrweiler2

100.0
20.8
25.1
49.0
100.0
100.0
100.0
100.0
100.0
25.1
100.0
40.0
100.0

Heizwerk Holzverwertungsgenossenschaft Stiftland eG & Co. oHG,
DE, Neualbenreuth6

Grüne Wärme Schönefeld GmbH, DE, Schönefeld2
Grünkraft Energie GmbH, DE, Thalmassing6
GSH Green Steam Hürth GmbH, DE, Munich1
GVG Rhein-Erft GmbH, DE, Hürth4, 10
GVW GmbH, DE, Wunsiedel6
GW EnergyTec GmbH & Co. KG, DE, Hohenhameln2
Hams Hall Management Company Limited, GB, Coventry6
HanseGas GmbH, DE, Quickborn1
HanseWerk AG, DE, Quickborn1, 15
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

100.0
50.0 Hennef (Sieg) Netz GmbH & Co. KG, DE, Hennef6
100.0 Hermann Stibbe Verwaltungs-GmbH, DE, Wunstorf2
56.6 HGC Hamburg Gas Consult GmbH, DE, Hamburg2
50.0
85.1 Hof Promotion B.V., NL, Utrecht1
44.8 Holsteiner Wasser GmbH, DE, Neumünster6
100.0 Horisont Energi AS, NO, Sandnes6
66.5 HSL Solar GmbH, DE, Wiesen2

HOCHTEMPERATUR-KERNKRAFTWERK GmbH (HKG).
Gemeinsames europäisches Unternehmen, DE, Hamm6

50.0
49.0
100.0
100.0
26.0
100.0
50.0
25.6
100.0

25.1
100.0
25.0
51.0
20.8

100.0
100.0
49.0
100.0

Stake

49.0

25.0
50.0
100.0
100.0
100.0
100.0
100.0
49.0
100.0
32.7
50.0
100.0

49.9

HYPION GmbH, DE, Heide6
I-1 Beteiligungs GmbH, DE, Helmstedt6
Idola Solkraft AB, SE, Norrköping2
Improvers B.V., NL, Utrecht1
Improvers Community B.V., NL, Utrecht2
Induboden GmbH & Co. Grundstücksgesellschaft oHG, DE, Essen2
Induboden GmbH, DE, Düsseldorf2
Industriekraftwerk Greifswald GmbH, DE, Kassel6
Industry Development Services Limited, GB, Coventry2
Inenergie Holding B.V., NL, Utrecht6
InfraServ - Bayernwerk Gendorf GmbH, DE, Burgkirchen a.d.Alz6
Infrastrukturgesellschaft Nord GmbH, DE, Quickborn2
Infrastrukturgesellschaft Stadt Nienburg/Weser mbH, DE,
Nienburg/Weser6
innogy e-mobility US LLC, US, Dover (Delaware)1
innogy Hungária Tanácsadó Kft. "v.a.", HU, Budapest2
innogy International Middle East LLC, AE, Dubai6
innogy South East Europe s.r.o., SK, Bratislava2
innogy.C3 GmbH i. L., DE, Essen6
Installatietechniek Totaal B.V., NL, Leeuwarden1
Intelligent Maintenance Systems Limited, GB, Milton Keynes6
IPP ESN Power Engineering GmbH, DE, Kiel2
Iqony Windpark Ullersdorf GmbH & Co. KG, DE, Jamlitz6

237

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
Isar Loisach Stromnetz GmbH & Co. KG, DE, Wolfratshausen6
Isoprofs B.V., NL, Meijel1
Jihočeská plynárenská, a.s., CZ, České Budějovice2

Stake Name, Location
49.0 klarsolar GmbH, DE, Heidelberg2
100.0 KlickEnergie GmbH & Co. KG, DE, Neuss6
100.0

KlickEnergie Verwaltungs-GmbH, DE, Neuss6

Kalmar Energi Försäljning AB, SE, Kalmar6
Kalmar Energi Holding AB, SE, Kalmar4
Karlskrona Kylservice AB, SE, Nättraby2
Kavernengesellschaft Staßfurt mbH, DE, Staßfurt6

KAWAG AG & Co. KG, DE, Pleidelsheim6

KAWAG Gas GmbH & Co. KG, DE, Pleidelsheim6

KAWAG Netze GmbH & Co. KG, DE, Abstatt6

KAWAG Netze Verwaltungsgesellschaft mbH, DE, Abstatt6
KDT Kommunale Dienste Tholey GmbH, DE, Tholey6
Kemkens Groep B.V., NL, Oss5
Kemsley CHP Limited, GB, Coventry1
KEN GmbH, DE, Püttlingen2

Kernkraftwerk Brokdorf GmbH & Co. oHG, DE, Hamburg1
Kernkraftwerk Brunsbüttel GmbH & Co. oHG, DE, Hamburg5
Kernkraftwerk Krümmel GmbH & Co. oHG, DE, Hamburg3
Kernkraftwerk Stade GmbH & Co. oHG, DE, Hamburg1
Kernkraftwerke Isar Verwaltungs GmbH, DE, Essenbach1
KEVAG Telekom GmbH, DE, Koblenz6

49.0

Klima És Hűtéstechnológia Tervező, Szerelő És Kereskedelmi Kft., HU,
Budapest1

40.0
50.0 Komáromi Kogenerációs Erőmű Kft., HU, Budapest2
100.0 KommEnergie GmbH, DE, Eichenau6
50.0

Kommunale Dienste Marpingen Gesellschaft mit beschränkter
Haftung, DE, Marpingen6
Kommunale Energieversorgung GmbH Eisenhüttenstadt, DE,
Eisenhüttenstadt6
Kommunale Klimaschutzgesellschaft Landkreis Celle gemeinnützige
GmbH, DE, Celle6
Kommunale Klimaschutzgesellschaft Landkreis Uelzen gemeinnützige
GmbH, DE, Celle6
Kommunale Netzgesellschaft Steinheim a. d. Murr GmbH & Co. KG,
DE, Steinheim an der Murr6

Kommunalwerk Rudersberg Verwaltungs-GmbH, DE, Rudersberg6

49.0
49.0 Kommunalwerk Rudersberg GmbH & Co. KG, DE, Rudersberg6
49.0
100.0 Konnektor B.V., NL, Utrecht2
100.0

Konsortium Energieversorgung Opel beschränkt haftende oHG, DE,
Karlstein4, 10
Kraftwerk Hattorf GmbH, DE, Munich1

80.0
33.3 Kraftwerk Marl GmbH, DE, Munich1
50.0 Kraftwerk Neuss GmbH, DE, Munich1
66.7 Kraftwerk Osnabrück GmbH, DE, Munich2
100.0 Kraftwerk Plattling GmbH, DE, Munich1
50.0

Kraftwerk Wehrden Gesellschaft mit beschränkter Haftung, DE,
Völklingen6
Kristianstads Kylservice AB, SE, Kristianstad2

Stake Name, Location
100.0 KSP Kommunaler Service Püttlingen GmbH, DE, Püttlingen6
65.0 KTA Kältetechnischer Anlagenbau GmbH, DE, Garbsen2
65.0

KVK Kompetenzzentrum Verteilnetze und Konzessionen GmbH, DE,
Cologne6
KWH Netz GmbH, DE, Haag i. OB2

100.0
100.0 KWS Kommunal-Wasserversorgung Saar GmbH, DE, Saarbrücken2
49.0 Kylel i Kristianstad AB, SE, Kristianstad2
49.0
LandE GmbH, DE, Wolfsburg1

49.0

25.0

LANDWEHR Wassertechnik GmbH, DE, Schöppenstedt2

Latorca Sport Kft., HU, Budapest2

LE Montáže, s.r.o., CZ, Zlín2

49.0
Lechwerke AG, DE, Augsburg1
49.9 Leicon GmbH, DE, Neustadt a. Rbge.6
49.9
100.0 Leitungspartner GmbH, DE, Düren1
66.7
Lemonbeat GmbH, DE, Dortmund2

Leitungs- und Kanalservice Bauer GmbH, DE, Schönbrunn i.
Steigerwald2

LEW Anlagenverwaltung Gesellschaft mit beschränkter Haftung, DE,
Gundremmingen1

100.0
100.0 LEW Beteiligungsgesellschaft mbH, DE, Gundremmingen1
100.0 LEW Service & Consulting GmbH, DE, Augsburg1
100.0 LEW TelNet GmbH, DE, Neusäß1
100.0 LEW Verteilnetz GmbH, DE, Augsburg1
33.3
LEW Wasserkraft GmbH, DE, Augsburg1

Stake
40.0
100.0

74.9

100.0
100.0
100.0

69.6

100.0

96.6

51.0

89.9
50.0

100.0
100.0

100.0

100.0
100.0
100.0
100.0
100.0

100.0

KEW Kommunale Energie- und Wasserversorgung
Aktiengesellschaft, DE, Neunkirchen5
KGW - Kraftwerk Grenzach-Wyhlen GmbH, DE, Munich1
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

28.6
100.0 KSG Kraftwerks-Simulator-Gesellschaft mbH i. L., DE, Essen6

100.0
41.7 Lichtverbund Straßenbeleuchtung GmbH, DE, Helmstedt2

Licht Groen B.V., NL, Amsterdam1

100.0
89.8

238

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
Lighting for Staffordshire Holdings Limited, GB, Coventry1
Lighting for Staffordshire Limited, GB, Coventry1
Liikennevirta Oy, FI, Helsinki6
Lillo Energy NV, BE, Brussels6
Limfjordens Bioenergi ApS, DK, Frederiksberg6
Local Energies, a.s., CZ, Zlín - Malenovice2
LokalWerke GmbH, DE, Ahaus6
Lößnitz Netz GmbH & Co. KG, DE, Lößnitz2
Lößnitz Netz Verwaltungs GmbH, DE, Lößnitz2

LSW Energie Verwaltungs-GmbH, DE, Wolfsburg6

LSW Holding GmbH & Co. KG, DE, Wolfsburg5, 10

Stake Name, Location
60.0 MITGAS Mitteldeutsche Gasversorgung GmbH, DE, Halle (Saale)1
100.0 Mitteldeutsche Netzgesellschaft Gas HD mbH, DE, Halle (Saale)2
25.0 Mitteldeutsche Netzgesellschaft Gas mbH, DE, Halle (Saale)1
50.0
Mitteldeutsche Netzgesellschaft mbH, DE, Chemnitz2
50.0 Mitteldeutsche Netzgesellschaft Strom mbH, DE, Halle (Saale)1
100.0 Mittlere Donau Kraftwerke AG, DE, Landshut6
32.5 Mosoni-Duna Menti Szélerőmű Kft., HU, Budapest2
74.9 Murrhardt Netz AG & Co. KG, DE, Murrhardt6
100.0

MWE Mecklenburgische Wärme- und Energiedienstleistungen GmbH,
DE, Wismar6
Nahwärme Ascha GmbH, DE, Ascha2

Naturstrom Betriebsgesellschaft Oberhonnefeld mbH, DE, Koblenz6

57.0

Netzgesellschaft GmbH & Co. KG Bad Homburg v. d. Höhe, DE, Bad
Homburg v. d. Höhe6

Stake Name, Location
75.4 Netzgesellschaft Bühlertal GmbH & Co. KG, DE, Bühlertal6
100.0 Netzgesellschaft Elsdorf Verwaltungs-GmbH, DE, Elsdorf6
100.0 Netzgesellschaft Gehrden mbH, DE, Gehrden6
100.0
100.0 Netzgesellschaft Grimma GmbH & Co. KG, DE, Grimma6
40.0 Netzgesellschaft Hemmingen mbH, DE, Hemmingen6
100.0 Netzgesellschaft Hennigsdorf Strom mbH, DE, Hennigsdorf6
49.0 Netzgesellschaft Hildesheimer Land GmbH & Co. KG, DE, Giesen6
50.0

Netzgesellschaft Hildesheimer Land Verwaltung GmbH, DE, Giesen6

90.0

25.0

Netzgesellschaft Hochtaunuskreis - Usinger Land - GmbH & Co. KG,
DE, Usingen6
Netzgesellschaft Hohen Neuendorf Strom GmbH & Co. KG, DE, Hohen
Neuendorf6
Netzgesellschaft Horn-Bad Meinberg GmbH & Co. KG, DE, Horn-Bad
Meinberg6

Stake
49.9
49.0
49.0

45.7
49.0
49.0
50.0
49.0

49.0

Navirum Energi AB, SE, Malmö1

LSW Holding Verwaltungs-GmbH, DE, Wolfsburg6
LSW Netz Verwaltungs-GmbH, DE, Wolfsburg6
Luna Lüneburg GmbH, DE, Lüneburg6
MAINGAU Energie GmbH, DE, Obertshausen5
Mampaey Dordrecht Beheer B.V., NL, Dordrecht1
Mampaey Installatietechniek B.V., NL, Dordrecht1
Mampaey Service B.V., NL, Dordrecht2
Manfred Müller GmbH, DE, Kördorf2
MDE Service GmbH, DE, Gersthofen6
medl GmbH, DE, Mülheim an der Ruhr5
Mehr Ampere GmbH, DE, Regensburg2
Melle Netze GmbH & Co. KG, DE, Melle6
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

57.0
57.0 Nebelhornbahn-Aktiengesellschaft, DE, Oberstdorf6
49.0 Nederland Isoleert B.V., NL, Amersfoort1
46.6 Nederland Verkoopt B.V., NL, Amersfoort1
100.0 Nereon S.r.l., IT, Brindisi2
100.0
Netz- und Wartungsservice (NWS) GmbH, DE, Schwerin2
100.0 Netzanschluss Mürow Oberdorf GbR, DE, Bremerhaven6
100.0 Netzdienste Oberursel (Taunus) GmbH & Co. KG, DE, Oberursel6
24.9 Netzgesellschaft Bad Münder GmbH & Co. KG, DE, Bad Münder6
39.0 Netzgesellschaft Barsinghausen GmbH & Co. KG, DE, Barsinghausen6
100.0 Netzgesellschaft Bedburg Verwaltungs-GmbH, DE, Bedburg6
50.0 Netzgesellschaft Betzdorf GmbH & Co. KG, DE, Betzdorf6

100.0
20.1 Netzgesellschaft Hüllhorst GmbH & Co. KG, DE, Hüllhorst6
100.0 Netzgesellschaft Kelkheim GmbH & Co. KG, DE, Kelkheim6
100.0 Netzgesellschaft Korb GmbH & Co. KG, DE, Korb6
51.0 Netzgesellschaft Korb Verwaltungs-GmbH, DE, Korb6
100.0
34.8 Netzgesellschaft Lauf GmbH & Co. KG, DE, Lauf6
49.0 Netzgesellschaft Lennestadt GmbH & Co. KG, DE, Lennestadt6
49.0 Netzgesellschaft Leutenbach GmbH & Co. KG, DE, Leutenbach6
49.0 Netzgesellschaft Leutenbach Verwaltungs-GmbH, DE, Leutenbach6
49.0 Netzgesellschaft Maifeld GmbH & Co. KG, DE, Polch6
49.0 Netzgesellschaft Maifeld Verwaltungs GmbH, DE, Polch6

Netzgesellschaft Kreisstadt Bergheim Verwaltungs-GmbH, DE,
Bergheim6

49.0
49.9
25.1
49.9
49.9
49.0
49.0

49.0
49.0
49.0
49.9
49.9

239

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

NEW Windpark Viersen GmbH & Co. KG, DE, Mönchengladbach2

Stake Name, Location
25.1 NEW Re GmbH, DE, Mönchengladbach2
49.0 NEW Smart City GmbH, DE, Mönchengladbach2
50.0 NEW Tönisvorst GmbH, DE, Tönisvorst1
49.9 NEW Viersen GmbH, DE, Viersen1
100.0 NEW Windenergie Verwaltung GmbH, DE, Mönchengladbach2
49.0
NEW Windpark Linnich GmbH & Co. KG, DE, Mönchengladbach2

Stake Name, Location
70.4 Oberg Freiflächen PV Verwaltungs GmbH, DE, Gronau (Leine)6
100.0 Oberland Stromnetz GmbH & Co. KG, DE, Murnau a. Staffelsee6
98.7 ocean5 Business Software GmbH i. L., DE, Kiel6
100.0 Oebisfelder Wasser und Abwasser GmbH, DE, Oebisfelde6
100.0 Oer-Erkenschwick Netz GmbH & Co. KG, DE, Oer-Erkenschwick6
100.0

Name, Location
Netzgesellschaft Marl mbH & Co. KG, DE, Marl6
Netzgesellschaft Neuenkirchen mbH & Co. KG, DE, Neuenkirchen6
Netzgesellschaft Osnabrücker Land GmbH & Co. KG, DE, Bohmte4
Netzgesellschaft Ottersweier GmbH & Co. KG, DE, Ottersweier6
Netzgesellschaft Panketal GmbH, DE, Panketal2
Netzgesellschaft Rheda-Wiedenbrück GmbH & Co. KG, DE, Rheda-
Wiedenbrück6
Netzgesellschaft Rheda-Wiedenbrück Verwaltungs-GmbH, DE,
Rheda-Wiedenbrück6
Netzgesellschaft Rietberg-Langenberg GmbH & Co. KG, DE, Rietberg6
Netzgesellschaft Ronnenberg GmbH & Co. KG, DE, Ronnenberg6
Netzgesellschaft S-1 GmbH, DE, Helmstedt2
Netzgesellschaft Schwerin mbH (NGS), DE, Schwerin6
Netzgesellschaft Stuhr/Weyhe mbH i. L., DE, Helmstedt2
Netzgesellschaft Südwestfalen mbH & Co. KG, DE, Netphen6
Netzgesellschaft Syke GmbH, DE, Syke6
Netzgesellschaft W-1 GmbH, DE, Helmstedt2
Netzinfrastrukturgesellschaft Nordwest GmbH & Co. KG, DE, Heek6
NetzweltFabrik GmbH, DE, Machern2
NEW AG, DE, Mönchengladbach1, 9
NEW b_gas Eicken GmbH, DE, Schwalmtal2
New Cogen Sp. z o.o., PL, Szczecin2
NEW Netz GmbH, DE, Geilenkirchen1
NEW Niederrhein Energie und Wasser GmbH, DE, Mönchengladbach1
NEW NiederrheinWasser GmbH, DE, Viersen1
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

100.0
51.0 Orcan Energy AG, DE, Munich6
51.0 Oschatz Netz Verwaltungs GmbH, DE, Oschatz2
100.0
Oskarshamn Energi AB, SE, Oskarshamn4
100.0 Ostwestfalen Netz GmbH & Co. KG, DE, Bad Driburg6
100.0 Otto Geiler GmbH Heizung Klima Sanitär, DE, Braunschweig2
100.0 PannonWatt Energetikai Megoldások Zrt., HU, Győr6
100.0 PEEK GmbH, DE, Herrsching am Ammersee2
100.0 PEG Infrastruktur AG, CH, Zug13
100.0
100.0 Peißenberger Wärmegesellschaft mbH, DE, Peißenberg2
100.0 Peridot Beteiligungs GmbH & Co. KG, DE, Essen6
100.0 PFALZWERKE AKTIENGESELLSCHAFT, DE, Ludwigshafen am Rhein5
100.0 PIS Progress Sp. z o.o., PL, Piła2
100.0 Placense Ltd., IL, Caesarea6
100.0 Plus Shipping Services Limited, GB, Swindon1
50.0 Portfolio EDL GmbH, DE, Helmstedt1, 8

49.0
25.1 NiersEnergieNetze GmbH & Co. KG, DE, Kevelaer6
49.0 NiersEnergieNetze Verwaltungs-GmbH, DE, Kevelaer6
100.0
40.0 NORD-direkt GmbH, DE, Neumünster2
100.0 NordNetz GmbH, DE, Quickborn1
49.0 Npower Commercial Gas Limited, GB, Coventry1
49.0 Npower Gas Limited, GB, Coventry2
100.0 Npower Group Business Services Limited, GB, Coventry1
33.3
100.0 Npower Limited, GB, Coventry1
42.5 Npower Northern Limited, GB, Coventry2
100.0 Npower Northern Supply Limited, GB, Coventry2
66.7 Npower Yorkshire Limited, GB, Coventry2
100.0 Npower Yorkshire Supply Limited, GB, Coventry2
100.0 NRF Neue Regionale Fortbildung GmbH, DE, Halle (Saale)2
100.0 Oberg Freiflächen PV GmbH & Co.KG, DE, Gronau (Leine)6

Peißenberger Kraftwerksgesellschaft mit beschränkter Haftung, DE,
Peißenberg2

NIS Norddeutsche Informations-Systeme Gesellschaft mbH, DE,
Schwentinental2

100.0
100.0
99.0
26.7
100.0
22.7
100.0
100.0

50.0
25.1
100.0
49.9
80.0
100.0

Stake
50.0
33.9
50.2
49.0
49.0

OOO E.ON Connecting Energies, RU, Moscow6

OIE Aktiengesellschaft, DE, Idar-Oberstein1

Npower Group Limited, GB, Coventry1

50.0
22.3
100.0

100.0

240

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
Powergen Limited, GB, Coventry2
Powergen Luxembourg Holdings S.À R.L., LU, Luxembourg1
Powergen UK Investments, GB, Coventry2
Powerhouse B.V., NL, Amsterdam1
prego services GmbH, DE, Saarbrücken6

PRENU Projektgesellschaft für Rationelle Energienutzung in Neuss
mit beschränkter Haftung, DE, Neuss6
PreussenElektra GmbH, DE, Hanover1
Projecta 14 GmbH, DE, Saarbrücken5
Propan Rheingas GmbH & Co Kommanditgesellschaft, DE, Brühl6
Propan Rheingas GmbH, DE, Brühl6
PS Energy UK Limited, GB, Coventry2

Qualitas-AMS GmbH, DE, Siegen2
Rain Biomasse Wärmegesellschaft mbH, DE, Rain6
Rauschbergbahn Gesellschaft mit beschränkter Haftung, DE,
Ruhpolding2
RDE Regionale Dienstleistungen Energie GmbH & Co. KG, DE,
Veitshöchheim2
RDE Verwaltungs-GmbH, DE, Veitshöchheim2
Recklinghausen Netzgesellschaft mbH, DE, Recklinghausen5
Recklinghausen Netz-Verwaltungsgesellschaft mbH, DE,
Recklinghausen6
Refarmed ApS, DK, Copenhagen6
REGAS GmbH & Co KG, DE, Regensburg6
REGAS Verwaltungs-GmbH, DE, Regensburg6

Stake Name, Location
100.0 Regionale Energiewende Beteiligung Freyung-GmbH, DE, Freyung6
100.0 Regionetz GmbH, DE, Aachen1, 9
100.0 RegioNetzMünchen GmbH & Co. KG, DE, Garching6
100.0 RegioNetzMünchen Verwaltungs GmbH, DE, Garching6
50.0

Regnitzstromverwertung Aktiengesellschaft, DE, Erlangen6

REN 181 S.r.l., IT, Milan2

50.0
100.0 Renergie Stadt Wittlich GmbH, DE, Wittlich6
50.0 Rensol S.r.l., IT, Sassari2
32.6 Reservekraft AS, NO, Lillestrøm2
30.0 rEVUlution GmbH, DE, Essen2
100.0

REWAG REGENSBURGER ENERGIE- UND WASSERVERSORGUNG
AG & CO KG, DE, Regensburg5
Rhegio Dienstleistungen GmbH, DE, Rhede6

100.0
51.0 Rhein-Ahr-Energie Netz GmbH & Co. KG, DE, Grafschaft6
77.4

RheinEnergie AG, DE,Cologne5

Rhein-Main-Donau GmbH, DE, Landshut5

100.0
100.0 Rhein-Sieg Netz GmbH, DE, Siegburg1
49.9 rhenag Rheinische Energie Aktiengesellschaft, DE, Cologne1, 9
49.0
20.0 rheNEO GmbH, DE, Schwarzenbach am Wald6
50.0 RIWA GmbH, DE, Kempten (Allgäu)6
50.0

RHENAGBAU Gesellschaft mit beschränkter Haftung, DE, Cologne2

R-KOM Regensburger Telekommunikationsgesellschaft mbH & Co.
KG, DE, Regensburg6
R-KOM Regensburger Telekommunikationsverwaltungsgesellschaft
mbH, DE, Regensburg6

Stake Name, Location
33.3 RL Beteiligungsverwaltung beschr. haft. OHG, DE, Essen1, 8
49.2 RURENERGIE GmbH, DE, Düren6
50.0 Rüthen Gasnetz GmbH & Co. KG, DE, Rüthen6
50.0 RWE Windpark Garzweiler GmbH & Co. KG, DE, Essen6
33.3

RWW Rheinisch-Westfälische Wasserwerksgesellschaft mbH, DE,
Mülheim an der Ruhr1
S.C. Salgaz S.A., RO, Salonta2

100.0
30.0 SafeRadon GmbH, DE, Munich2
100.0 Safetec GmbH, DE, Heidelberg2
100.0 Safetec-Swiss GmbH, CH, Würenlingen2
100.0 SALVA Lüneburg GmbH, DE, Lüneburg6
35.5

Sandersdorf-Brehna Netz GmbH & Co. KG, DE, Sandersdorf-Brehna6

Scharbeutzer Energie- und Netzgesellschaft mbH & Co. KG, DE,
Scharbeutz2

24.9
25.1 SchlauTherm GmbH, DE, Saarbrücken2
24.2

Schleswig-Holstein Netz AG, DE, Quickborn1

SEAGRASS LIMITED, AE, Abu Dhabi2

22.5
100.0 SEC A Sp. z o.o., PL, Szczecin2
45.6 SEC B Sp. z o.o., PL, Szczecin2
100.0
SEC C Sp. z o.o., PL, Szczecin2
50.0 SEC Chojnice Sp. z o.o, PL, Szczecin2
20.0 SEC D Sp. z o.o., PL, Szczecin2
20.0
SEC E Sp. z o.o., PL, Szczecin2

Stake
100.0
30.1
25.1
49.0

79.8

53.8
100.0
100.0
100.0
50.0

49.0

51.0
75.0

69.1

100.0
100.0
100.0

100.0

REGENSBURGER ENERGIE- UND WASSERVERSORGUNG AG, DE,
Regensburg6
RegioBoden GmbH, DE, Aachen6
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

35.5
50.0 RL Besitzgesellschaft mbH, DE, Essen1

20.0
100.0 SEC F Sp. z o.o., PL, Szczecin2

SEC Energia Sp. z o.o., PL, Szczecin2

100.0
100.0

241

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
SEC G Sp. z o.o., PL, Szczecin2
SEC GEO Sp. z o.o., PL, Szczecin2
SEC H Sp. z o.o., PL, Szczecin2
SEC I Sp. z o.o., PL, Szczecin2
SEC J Sp. z o.o., PL, Szczecin2
SEC K Sp. z o.o., PL, Szczecin2
SEC L Sp. z o.o., PL, Szczecin2
SEC M Sp. z o.o., PL, Szczecin2
SEC N Sp. z o.o., PL, Szczecin2
SEC NewGrid Sp. z o.o., PL, Szczecin2
SEC O Sp. z o.o., PL, Szczecin2
SEC Obrót Sp. z o.o., PL, Szczecin2
SEC P Sp. z o.o., PL, Szczecin2
SEC R Sp. z o.o., PL, Szczecin2
SEC Region Sp. z o.o., PL, Szczecin2
SEC S Sp. z o.o., PL, Szczecin2
SEC Serwis Sp. z o.o., PL, Szczecin2
SEC Zgorzelec Sp. z o.o., PL, Zgorzelec2
SEG Solarenergie Guben GmbH & Co. KG, DE, Guben6
SEG Solarenergie Guben Management GmbH, DE, Lützen2
Selm Netz GmbH & Co. KG, DE, Selm6
SEN Solarenergie Nienburg GmbH & Co. KG, DE, Lützen2
SERVICE plus GmbH, DE, Neumünster2
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

Stake Name, Location
100.0 Stadtentfalter GmbH, DE, Mönchengladbach2
100.0 Stadtentfalter Holding GmbH, DE, Sarstedt2
40.0 Stadtentfalter Quartiere GmbH, DE, Sarstedt2
50.0 Städtische Betriebswerke Luckenwalde GmbH, DE, Luckenwalde6
24.9 Städtische Werke Borna GmbH, DE, Borna6
100.0 Städtische Werke Magdeburg GmbH & Co. KG, DE, Magdeburg5
21.0 Städtische Werke Magdeburg Verwaltungs-GmbH, DE, Magdeburg6
100.0 Städtisches Wasserwerk Eschweiler GmbH, DE, Eschweiler6
100.0 Stadtnetze Neustadt a. Rbge. GmbH & Co. KG, DE, Neustadt a. Rbge.6
100.0
100.0 Stadtversorgung Pattensen GmbH & Co. KG, DE, Pattensen6
49.0 Stadtversorgung Pattensen Verwaltung GmbH, DE, Pattensen6
50.0 Stadtwerk Verl Netz GmbH & Co. KG, DE, Verl6
50.0 Stadtwerke - Strom Plauen GmbH & Co. KG, DE, Plauen6
50.0 Stadtwerke Aschersleben GmbH, DE, Aschersleben6
100.0 Stadtwerke Aue - Bad Schlema GmbH, DE, Aue-Bad Schlema6
100.0 Stadtwerke Bad Bramstedt GmbH, DE, Bad Bramstedt6
35.0 Stadtwerke Barth GmbH, DE, Barth6
24.9 Stadtwerke Bayreuth Energie und Wasser GmbH, DE, Bayreuth5
49.5 Stadtwerke Bergen GmbH, DE, Bergen6
49.5
Stadtwerke Bernburg GmbH, DE, Bernburg (Saale)5
37.5 Stadtwerke Bitterfeld-Wolfen GmbH, DE, Bitterfeld-Wolfen6
100.0 Stadtwerke Blankenburg GmbH, DE, Blankenburg6

Stake Name, Location
100.0 SERVICE plus Recycling GmbH, DE, Neumünster2
100.0 SEW Solarenergie Weißenfels GmbH & Co. KG, DE, Lützen2
100.0 Shamrock Energie GmbH, DE, Herne6
100.0 SHW/RWE Umwelt Aqua Vodogradnja d.o.o., HR, Zagreb6
100.0 Siegener Versorgungsbetriebe GmbH, DE, Siegen6
100.0 Skandinaviska Kraft AB, SE, Halmstad2
100.0 ŠKO-ENERGO, s.r.o., CZ, Mladá Boleslav6
100.0 Smart Energy for Industry GmbH, DE, Munich2
100.0 Solar Concept B.V., NL, Schaijk2
100.0
100.0 Solar Supply Sweden AB, SE, Karlshamn2
100.0 Solarpark Schönteichen GmbH & Co. KG, DE, Ellzee6
100.0 SolarProjekt Mainaschaff GmbH, DE, Mainaschaff6
100.0 Sønderjysk Biogas Bevtoft A/S, DK, Vojens6
100.0 Sønderjysk Biogas Løgumkloster ApS, DK, Bevtoft6
100.0 Sora Comfort B.V., NL, Schaijk2
100.0 SPG Solarpark Guben GmbH & Co. KG, DE, Lützen2
89.7 SPIE Energy Solutions Harburg GmbH, DE, Hamburg6
25.1 SPIE HanseGas GmbH, DE, Ratingen6
100.0 SSW - Stadtwerke St. Wendel GmbH & Co KG., DE, St. Wendel5
SSW Stadtwerke St. Wendel Geschäftsführungsgesellschaft mbH,
25.1
DE, St. Wendel6
50.0 St. Clements Services Limited, GB, London6
100.0 Stadtentfalter Erkrath GmbH, DE, Sarstedt2

Stadtnetze Neustadt a. Rbge. Verwaltungs-GmbH, DE, Neustadt a.
Rbge.6

Stake
100.0
100.0
100.0
29.0
36.8
26.7
26.7
24.9
24.9

24.9
49.0
49.0
25.1
49.0
35.0
24.5
36.0
49.0
24.9
49.0

Solar Energy Group S.p.A., IT, San Daniele del Friuli1

45.0
40.0
30.0

242

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income
→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
Stadtwerke Bogen GmbH, DE, Bogen6
Stadtwerke Burgdorf GmbH, DE, Burgdorf6
Stadtwerke Castrop-Rauxel Stromnetz GmbH & Co. KG, DE, Castrop-
Rauxel6
Stadtwerke Dillingen/Saar GmbH, DE, Dillingen6
Stadtwerke Dülmen Dienstleistungs- und Beteiligungs-GmbH & Co.
KG, DE, Dülmen4
Stadtwerke Dülmen Verwaltungs-GmbH, DE, Dülmen6
Stadtwerke Düren GmbH, DE, Düren1, 9
Stadtwerke Ebermannstadt Versorgungsbetriebe GmbH, DE,
Ebermannstadt6
Stadtwerke Eggenfelden GmbH, DE, Eggenfelden6
Stadtwerke Emmerich GmbH, DE, Emmerich am Rhein6

Stake Name, Location
41.0 Stadtwerke Kirn GmbH, DE, Kirn/Nahe6
49.0 Stadtwerke Langenfeld GmbH, DE, Langenfeld6
25.1
Stadtwerke Lingen GmbH, DE, Lingen (Ems)4
49.0 Stadtwerke Lohmar GmbH & Co. KG, DE, Lohmar6
50.0
50.0 Stadtwerke Lübz GmbH, DE, Lübz6
49.9 Stadtwerke Ludwigsfelde GmbH, DE, Ludwigsfelde6
Stadtwerke Meerane GmbH, DE, Meerane6
25.0
49.0 Stadtwerke Merseburg GmbH, DE, Merseburg5
24.9

Stadtwerke Lohmar Verwaltungs-GmbH, DE, Lohmar6

Stadtwerke Essen Aktiengesellschaft, DE, Essen5

29.0

Stadtwerke Merzig Gesellschaft mit beschränkter Haftung, DE,
Merzig5
Stadtwerke Neunburg vorm Wald Strom GmbH, DE, Neunburg vorm
Wald6
Stadtwerke Neuss Energie und Wasser Beteiligungs-GmbH, DE,
Neuss7, 10

Stake Name, Location
49.0 Stadtwerke Roßlau Fernwärme GmbH, DE, Dessau-Roßlau6
25.0 Stadtwerke Saarlouis GmbH, DE, Saarlouis5
40.0
Stadtwerke Sankt Augustin GmbH, DE, Sankt Augustin6
49.0 Stadtwerke Schwarzenberg GmbH, DE, Schwarzenberg/Erzgeb.6
49.0
25.0 Stadtwerke Siegburg GmbH & Co. KG, DE, Siegburg6
29.0 Stadtwerke Steinfurt GmbH, DE, Steinfurt6
Stadtwerke Tornesch GmbH, DE, Tornesch6
24.5
40.0 Stadtwerke Troisdorf GmbH, DE, Troisdorf6
Stadtwerke Unna GmbH, DE, Unna6
49.9

Stadtwerke Schwedt GmbH, DE, Schwedt/Oder6

24.9

Stadtwerke Vilshofen GmbH, DE, Vilshofen6

Stake
49.0
49.0
45.0
27.5
37.8
49.0
33.0
49.0
40.0
24.0

41.0

Stadtwerke Frankfurt (Oder) GmbH, DE, Frankfurt (Oder)5
Stadtwerke Garbsen GmbH, DE, Garbsen6
Stadtwerke Geesthacht GmbH, DE, Geesthacht6
Stadtwerke Geldern GmbH, DE, Geldern6
Stadtwerke Gescher GmbH, DE, Gescher6
Stadtwerke GmbH Bad Kreuznach, DE, Bad Kreuznach5
Stadtwerke Goch Netze GmbH & Co. KG, DE, Goch6
Stadtwerke Goch Netze Verwaltungsgesellschaft mbH, DE, Goch6
Stadtwerke Haan GmbH, DE, Haan6
Stadtwerke Husum GmbH, DE, Husum6
Stadtwerke Kamp-Lintfort GmbH, DE, Kamp-Lintfort5
Stadtwerke Kerpen GmbH & Co. KG, DE, Kerpen6
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

51.0
49.9 Stadtwerke Wadern GmbH, DE, Wadern6
33.3 Stadtwerke Waltrop Netz GmbH & Co. KG, DE, Waltrop6
49.0 Stadtwerke Weilburg GmbH, DE, Weilburg6
49.0 Stadtwerke Weißenfels GmbH, DE, Weißenfels6
25.2 Stadtwerke Wesel Strom-Netzgesellschaft mbH & Co. KG, DE, Wesel6
35.0 Stadtwerke Wismar GmbH, DE, Wismar5
49.0 Stadtwerke Wittenberge GmbH, DE, Wittenberge6
49.0 Stadtwerke Wolfenbüttel GmbH, DE, Wolfenbüttel6
24.8 Stadtwerke Wolmirstedt GmbH, DE, Wolmirstedt6
24.5
39.0 Stadtwerke Zeitz GmbH, DE, Zeitz6

39.0
24.9 Stadtwerke Nordfriesland GmbH, DE, Niebüll6
24.9 Stadtwerke Oberkirch GmbH, DE, Oberkirch6
49.0 Stadtwerke Olching Stromnetz GmbH & Co. KG, DE, Olching6
25.1 Stadtwerke Olching Stromnetz Verwaltungs GmbH, DE, Olching6
24.5 Stadtwerke Parchim GmbH, DE, Parchim6
25.1 Stadtwerke Premnitz GmbH, DE, Premnitz6
25.1 Stadtwerke Pritzwalk GmbH, DE, Pritzwalk6
25.1 Stadtwerke Pulheim GmbH, DE, Pulheim6
49.9 Stadtwerke Ratingen GmbH, DE, Ratingen5
49.0
25.1 Stadtwerke Ribnitz-Damgarten GmbH, DE, Ribnitz-Damgarten6

Stadtwerke Reichenbach/Vogtland GmbH, DE, Reichenbach im
Vogtland6

24.9
49.0
25.1
20.0
24.5
25.1
49.0
22.7
26.0
49.4
36.0
24.8

Stadtwerke Wülfrath Netz GmbH & Co. KG, DE, Wülfrath6

Stadtwerke Vlotho GmbH, DE, Vlotho6

243

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
STAWAG Abwasser GmbH, DE, Aachen2
STAWAG Infrastruktur Monschau GmbH & Co. KG, DE, Monschau2
STAWAG Infrastruktur Monschau Verwaltungs GmbH, DE,
Monschau2

STAWAG Infrastruktur Simmerath GmbH & Co. KG, DE, Simmerath2

100.0

Stake Name, Location
100.0 Stromnetz Kulmbach Verwaltungs GmbH, DE, Kulmbach6
100.0 Stromnetz Neckargemünd GmbH, DE, Neckargemünd6
100.0

Stromnetz Neufahrn/Eching GmbH & Co. KG, DE, Neufahrn bei
Freising6
Stromnetz Pulheim GmbH & Co. KG, DE, Pulheim6

STAWAG Infrastruktur Simmerath Verwaltungs GmbH, DE,
Simmerath2
Stibbe Kälte-Klima-Technik GmbH & Co. KG, DE, Garbsen2
Stoen Operator Sp. z o.o., PL, Warsaw1
Stollberg Netz GmbH & Co. KG, DE, Stollberg/Erzgeb.6
Strom Germering GmbH, DE, Germering2

Stromnetz Bornheim GmbH & Co. KG, DE, Bornheim6

Stromnetz Diez GmbH und Co.KG, DE, Diez6
Stromnetz Diez Verwaltungsgesellschaft mbH, DE, Diez6
Stromnetz Essen GmbH & Co. KG, DE, Essen4
Stromnetz Euskirchen GmbH & Co. KG, DE, Euskirchen6
Stromnetz Friedberg GmbH & Co. KG, DE, Friedberg6
Stromnetz Gersthofen GmbH & Co. KG, DE, Gersthofen6
Stromnetz Günzburg GmbH & Co. KG, DE, Günzburg6
Stromnetz Günzburg Verwaltungs GmbH, DE, Günzburg6
Stromnetz Hallbergmoos GmbH & Co. KG, DE, Hallbergmoos6

Stromnetz Pullach GmbH, DE, Pullach im Isartal6

100.0
100.0 Stromnetz Taufkirchen (Vils) GmbH & Co. KG, DE, Regensburg2
100.0
49.0 Stromnetz Traunreut GmbH & Co. KG, DE, Traunreut6
90.0

Stromnetz Taufkirchen (Vils) Verwaltungs GmbH i. Gr., DE,
Taufkirchen (Vils)2

Stromnetz Traunreut Verwaltungs GmbH, DE, Traunreut6

49.0

Stromnetz Verbandsgemeinde Katzenelnbogen GmbH & Co. KG, DE,
Katzenelnbogen6
Stromnetz Verbandsgemeinde Katzenelnbogen
25.1
Verwaltungsgesellschaft mbH, DE, Katzenelnbogen6
25.1 Stromnetz VG Diez GmbH und Co. KG, DE, Altendiez6
50.0 STROMNETZ VG DIEZ Verwaltungsgesellschaft mbH, DE, Altendiez6
25.1 Stromnetz Weiden i.d.OPf. GmbH & Co. KG, DE, Weiden i.d.OPf.6
49.0 Stromnetz Weilheim GmbH & Co. KG, DE, Weilheim i. OB6
49.0 Stromnetz Weilheim Verwaltungs GmbH, DE, Weilheim i. OB6
49.0 Stromnetz Würmtal GmbH & Co. KG, DE, Planegg2
49.0 Stromnetz Würmtal Verwaltungs GmbH, DE, Planegg2
49.0

Stromnetze Peiner Land GmbH, DE, Ilsede6

Stromnetz Hallbergmoos Verwaltungs GmbH, DE, Hallbergmoos6

Stromnetz Hofheim GmbH & Co. KG, DE, Hofheim am Taunus6

Stromnetz Hofheim Verwaltungs GmbH, DE, Hofheim am Taunus6

Stromnetz Kulmbach GmbH & Co. KG, DE, Kulmbach6

49.0

Stromnetzgesellschaft Bad Salzdetfurth - Diekholzen mbH & Co. KG,
DE, Bad Salzdetfurth6
Stromnetzgesellschaft Barsinghausen GmbH & Co. KG, DE,
Barsinghausen6
Strom-Netzgesellschaft Bedburg GmbH & Co. KG, DE, Bedburg6

Stromnetzgesellschaft Bramsche mbH & Co. KG, DE, Bramsche6

Stake Name, Location
49.0 Stromnetzgesellschaft Datteln GmbH & Co. KG, DE, Datteln6
49.9 Strom-Netzgesellschaft Elsdorf GmbH & Co. KG, DE, Elsdorf6
49.0
Stromnetzgesellschaft Gescher GmbH & Co. KG, DE, Gescher6

49.0

25.1

Strom-Netzgesellschaft Kolpingstadt Kerpen GmbH & Co. KG, DE,
Kerpen6
Strom-Netzgesellschaft Kreisstadt Bergheim GmbH & Co. KG, DE,
Bergheim6

49.0
100.0 Stromnetzgesellschaft Langenfeld mbH & Co. KG, DE, Langenfeld6
100.0
Stromnetzgesellschaft Mettmann mbH & Co. KG, DE, Mettmann6
49.0 Stromnetzgesellschaft Neuenhaus mbH & Co. KG, DE, Neuenhaus6
Stromnetzgesellschaft Neuenhaus Verwaltungs-GmbH, DE,
49.0
Neuenhaus6
Stromnetzgesellschaft Neunkirchen-Seelscheid mbH & Co. KG, DE,
Neunkirchen-Seelscheid6
Stromnetzgesellschaft Schwalmtal mbH & Co. KG, DE, Schwalmtal6

49.0
49.0 Stromnetzgesellschaft Seelze GmbH & Co. KG, DE, Seelze6
49.0 Stromnetzgesellschaft Siegen GmbH & Co.KG, DE, Siegen6
49.0 Strom-Netzgesellschaft Voerde mbH & Co. KG, DE, Voerde6
49.0 Stromnetzgesellschaft Windeck mbH & Co. KG, DE, Windeck6
49.0 Stromnetzgesellschaft Wunstorf GmbH & Co. KG, DE, Wunstorf6
74.5 Stromversorgung Angermünde GmbH, DE, Angermünde6
100.0 Stromversorgung Penzberg GmbH & Co. KG, DE, Penzberg6
Stromversorgung Pfaffenhofen a. d. Ilm GmbH & Co. KG, DE,
49.0
Pfaffenhofen6
Stromversorgung Pfaffenhofen a. d. Ilm Verwaltungs GmbH, DE,
Pfaffenhofen6
Stromversorgung Ruhpolding Gesellschaft mit beschränkter Haftung,
DE, Ruhpolding2
Stromversorgung Unterschleißheim GmbH & Co. KG, DE,
Unterschleißheim6
Stromversorgung Unterschleißheim Verwaltungs GmbH, DE,
Unterschleißheim6

25.1

49.0

25.1

Stake
49.0
25.1

25.1

25.1
49.0

49.0

51.0
49.0
25.1
25.1
49.9
49.0
49.0
49.0

49.0

100.0

49.0

244

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location
Stromverwaltung Schwalmtal GmbH, DE, Schwalmtal6
strotög GmbH Strom aus Töging, DE, Töging am Inn6
StWB Stadtwerke Brandenburg an der Havel GmbH & Co. KG, DE,
Brandenburg an der Havel5
StWB Verwaltungs GmbH, DE, Brandenburg an der Havel6
SüdWasser GmbH, DE, Erlangen2
Südwestfalen Netz-Verwaltungsgesellschaft mbH, DE, Netphen6
Sustainable Energy Aschaffenburg GmbH, DE, Munich1
Süwag Energie AG, DE, Frankfurt am Main1
Süwag Grüne Energien und Wasser AG & Co. KG, DE, Frankfurt am
Main1
Süwag Management GmbH, DE, Frankfurt am Main2
Süwag Vertrieb AG & Co. KG, DE, Frankfurt am Main1
SVH Stromversorgung Haar GmbH, DE, Haar6
SVI-Stromversorgung Ismaning GmbH, DE, Ismaning6
SVO Access GmbH, DE, Celle1
SVO Fischer electric GmbH, DE, Celle2
SVO Holding GmbH, DE, Celle1
SVO Tiemann electric GmbH, DE, Celle2
SVO Vertrieb GmbH, DE, Celle1
SWG Glasfaser Netz GmbH, DE, Geesthacht6

SWN Stadtwerke Neustadt GmbH, DE, Neustadt bei Coburg6

SWS Energie GmbH, DE, Stralsund5

SWT trilan GmbH, DE, Trier6

SWTE Netz GmbH & Co. KG, DE, Ibbenbüren5

Szczecińska Energetyka Cieplna Sp. z o.o., PL, Szczecin1

TNA Talsperren- und Grundwasser-Aufbereitungs- und
Vertriebsgesellschaft mbH, DE, Nonnweiler6

Stake Name, Location
51.0 SWTE Netz Verwaltungsgesellschaft mbH, DE, Ibbenbüren6
50.0 Syna GmbH, DE, Frankfurt am Main1
36.8
36.8 Szombathelyi Erőmű Zrt., HU, Budapest2
100.0 Szombathelyi Távhőszolgáltató Kft., HU, Szombathely6
49.0 Täby Miljövärme AB, SE, Täby6
100.0 TCA Sustainable Energy Solutions GmbH, DE, Unterschleißheim6
77.6 Technisch Bureau Mampaey-van Alphen B.V., NL, Haarlem2
100.0
Technische Werke Naumburg GmbH, DE, Naumburg (Saale)6
100.0 Tiefbaupartner SL GmbH, DE, Düren6
100.0
50.0 TOMTING 2010 d.o.o., HR, Zagreb2
25.1 TraveNetz GmbH, DE, Lübeck5
100.0 Trekvliet Energie B.V., NL, ’s-Hertogenbosch6
67.0 Trinkwasserverbund Niederrhein TWN GmbH, DE, Grevenbroich6
50.1 Trocknungsanlage Zolling GmbH & Co. KG, DE, Zolling6
100.0 Trocknungsanlage Zolling Verwaltungs GmbH, DE, Zolling6
100.0 TWE Technische Werke der Gemeinde Ensdorf GmbH, DE, Ensdorf6
TWL Technische Werke der Gemeinde Losheim GmbH, DE, Losheim
33.4
am See6
TWM Technische Werke der Gemeinde Merchweiler Gesellschaft mit
beschränkter Haftung, DE, Merchweiler6
TWRS Technische Werke der Gemeinde Rehlingen-Siersburg GmbH,
DE, Rehlingen-Siersburg6
TWS Technische Werke der Gemeinde Saarwellingen GmbH, DE,
Saarwellingen6
Überlandwerk Krumbach Gesellschaft mit beschränkter Haftung, DE,
Krumbach1

26.0

25.1

33.0

49.0

Untermain Erneuerbare Energien GmbH, DE, Raunheim6

Stake Name, Location
33.0 Überlandwerk Leinetal GmbH, DE, Gronau6
100.0 Überlandwerk Mittelbaden GmbH & Co. KG, DE, Lahr4
66.5
Überlandwerk Mittelbaden Verwaltungs-GmbH, DE, Lahr6
80.0 Ultra-Fast Charging Venture Scandinavia ApS, DK, Copenhagen6
25.0 Umspannwerk Miltzow-Mannhagen GbR, DE, Sundhagen6
47.5 Union Grid s.r.o., CZ, Prague6
50.0 Untere Iller GmbH, DE, Landshut6
100.0 Untermain EnergieProjekt AG & Co. KG., DE, Kelsterbach6
47.0
49.0 UP Energiewerke GmbH, DE, Dingolfing6
22.8
100.0 Urban Energy Solutions GmbH, DE, Cologne6
25.1 Vandebron Energie B.V., NL, Amsterdam1
50.0 VEM Neue Energie Muldental GmbH & Co. KG, DE, Markkleeberg6
33.3 Versorgungsbetrieb Waldbüttelbrunn GmbH, DE, Waldbüttelbrunn6
33.3 Versorgungsbetriebe Helgoland GmbH, DE, Helgoland6
33.3 Versorgungskasse Energie (VVaG) i. L., DE, Hanover2
49.0 Verteilnetz Plauen GmbH, DE, Plauen1
49.9

Verteilnetze Energie Weißenhorn GmbH & Co.KG, DE, Weißenhorn6

URANIT GmbH, DE, Jülich4

49.0

35.0

51.0

74.6

Verwaltungsgesellschaft Dorsten Netz mbH, DE, Dorsten6

Verwaltungsgesellschaft Energie Weißenhorn GmbH, DE,
Weißenhorn6
Verwaltungsgesellschaft Energieversorgung Timmendorfer Strand
mbH, DE, Timmendorfer Strand2
Verwaltungsgesellschaft GKW Dillingen mbH, DE, Dillingen6

Stake
48.0
37.8

37.8
50.0
26.8
34.0
40.0
49.0

25.0
50.0

50.0
50.0
100.0
50.0
49.0
49.0
100.0
100.0

35.0

49.0

35.0

51.0

25.2

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Consolidated Financial Statements

Contents

Back

→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location

Verwaltungsgesellschaft Scharbeutzer Energie- und Netzgesellschaft
mbH, DE, Scharbeutz2
"Veszprém-Kogeneráció" Energiatermelő Zrt., HU, Budapest2
Visualix GmbH i. L., DE, Berlin6
VKB-GmbH, DE, Neunkirchen1
Volta Limburg B.V., NL, Schinnen1

Volta NXT B.V., NL, Schinnen1
VOLTARIS GmbH, DE, Maxdorf6
VSE - Windpark Merchingen GmbH & Co. KG, DE, Saarbrücken2
VSE - Windpark Merchingen VerwaltungsGmbH, DE, Saarbrücken2
VSE Agentur GmbH, DE, Saarbrücken2
VSE Aktiengesellschaft, DE, Saarbrücken1, 15
VSE NET GmbH, DE, Saarbrücken1
VSE Verteilnetz GmbH, DE, Saarbrücken1

Wasserkraft Baierbrunn GmbH, DE, Unterschleißheim6

Stake Name, Location
51.0
100.0 Wasserkraft Farchet GmbH, DE, Bad Tölz2
25.0 Wasserkraftnutzung im Landkreis Gifhorn GmbH, DE, Müden/Aller6
50.0 Wassernetzgesellschaft Erft GmbH & Co. KG, DE, Bergheim6
100.0

Wasser-Netzgesellschaft Kolpingstadt Kerpen GmbH & Co. KG, DE,
Kerpen6
Wasserverbund Niederrhein Gesellschaft mit beschränkter Haftung,
DE, Moers6

100.0
50.0 Wasserversorgung Main-Taunus GmbH, DE, Frankfurt am Main6
100.0 Wasserversorgung Sarstedt GmbH, DE, Sarstedt6
100.0 Wasserzweckverband der Gemeinde Nalbach, DE, Nalbach6
100.0 WB Wärme Berlin GmbH, DE, Schönefeld6
51.4 WEA Jülich Broich GmbH & Co. KG, DE, Mönchengladbach2
100.0 WEA Jülich Broich Verwaltungs GmbH, DE, Mönchengladbach2
WEA Schönerlinde GbR mbH Kiepsch & Bosse & Beteiligungsges.
100.0
e.disnatur mbH, DE, Berlin2
weeenergie GmbH, DE, Dresden6

Westenergie Aqua GmbH, DE, Mülheim an der Ruhr1, 8

Stake Name, Location
50.0
60.0 Westenergie Metering GmbH, DE, Mülheim an der Ruhr1
50.0 Westenergie Netzservice GmbH, DE, Dortmund1
51.0 Westenergie Rheinhessen Beteiligungs GmbH, DE, Essen1, 8
25.1

Westerwald-Netz GmbH, DE, Betzdorf-Alsdorf1

Westnetz Asset Komplementär GmbH, DE, Essen2

38.5
49.0 Westnetz GmbH, DE, Dortmund1
49.0 Westnetz Immobilien GmbH & Co. KG, DE, Essen1, 8
49.0 Westnetz Kommunikationsleitungen GmbH & Co. KG, DE, Essen1
51.0 WEVG Salzgitter GmbH & Co. KG, DE, Salzgitter1
100.0 WEVG Verwaltungs GmbH, DE, Salzgitter2
100.0 WGK Windenergie Großkorbetha GmbH & Co. KG, DE, Lützen2
70.0
WHP Tiefbaugesellschaft mbH & Co. KG, DE, Mönchengladbach2

Stake

100.0
100.0
100.0
100.0

100.0

100.0
100.0
100.0
100.0
50.2
50.2
75.0

100.0

VSE-Stiftung Gemeinnützige Gesellschaft zur Förderung von Bildung,
Erziehung, Kunst und Kultur mbH, DE, Saarbrücken2
Wärmeschmiede GmbH, DE, Hanover6
Wärmeversorgung Limburg GmbH, DE, Limburg an der Lahn6
Wärmeversorgung Mücheln GmbH, DE, Mücheln (Geiseltal)6
Wärmeversorgung Schenefeld GmbH, DE, Schenefeld6
Wärmeversorgung Schwaben GmbH, DE, Augsburg2
Wärmeversorgung Wachau GmbH, DE, Markkleeberg OT Wachau6
Wärmeversorgung Würselen GmbH, DE, Stolberg/RhId.2
Wärmeversorgungsgesellschaft Königs Wusterhausen mbH, DE,
Königs Wusterhausen2
Wasser- und Abwassergesellschaft Vienenburg mbH, DE, Goslar6
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15)Taking into account own shares.

100.0
50.0 Weissmainkraftwerk Röhrenhof Aktiengesellschaft, DE, Bad Berneck2
50.0 WEK Windenergie Kolkwitz GmbH & Co. KG, DE, Kolkwitz2
49.0 Welver Netz GmbH & Co. KG, DE, Welver6
40.0
100.0 Wendelsteinbahn Verteilnetz GmbH, DE, Brannenburg am Inn2
49.0 werkkraft GmbH, DE, Munich6
100.0 Werne Netz GmbH & Co. KG, DE, Werne6
50.1
Westconnect GmbH, DE, Essen4
49.0 Westenergie AG, DE, Essen1

40.0
WHP Verwaltungs GmbH, DE, Mönchengladbach2
93.5 wind2move GmbH & Co. KG, DE, Geilenkirchen6
100.0 Windeck Energie GmbH, DE, Windeck6
49.0 Windenergie Briesensee GmbH, DE, Neu Zauche6
100.0
Windenergie Frehne GmbH & Co. KG, DE, Lützen6
100.0 Windenergie Frehne Management GmbH, DE, Lützen2
50.0 Windenergie Leinetal GmbH & Co. KG, DE, Freden (Leine)6
49.0 Windenergie Leinetal Verwaltungs GmbH, DE, Freden (Leine)6
50.0
100.0 Windenergie Osterburg GmbH & Co. KG, DE, Osterburg (Altmark)6

Wendelsteinbahn Gesellschaft mit beschränkter Haftung, DE,
Brannenburg am Inn2

Windenergie Merzig GmbH, DE, Merzig6

100.0
35.0
49.9
31.5

41.0
100.0
26.2
24.9

20.0
49.0

246

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)

Name, Location

Windenergie Osterburg Verwaltungs GmbH, DE, Osterburg (Altmark)6

Windenergie Schermbeck-Rüste GmbH & Co.KG, DE, Schermbeck6

Windenergiepark Heidenrod GmbH, DE, Heidenrod6
WINDENERGIEPARK WESTKÜSTE GmbH, DE, Kaiser-Wilhelm-Koog2
Windkraft Hochheim GmbH & Co. KG, DE, Lützen2

Windkraft Jerichow-Mangelsdorf I GmbH & Co. KG, DE, Burg6

Windpark Anhalt-Süd (Köthen) OHG, DE, Potsdam2

Windpark Büschdorf GmbH, DE, Perl2

Windpark Eschweiler Beteiligungs GmbH, DE, Stolberg/RhId.6

Windpark Hof Tatschow GmbH & Co. KG, DE, Potsdam2

Windpark Jüchen & NEW GmbH & Co. KG, DE, Jüchen2

Windpark Jüchen & NEW Verwaltung GmbH, DE, Jüchen2

Windpark Losheim-Britten GmbH, DE, Losheim am See6

Windpark Lützen GmbH & Co. KG, DE, Lützen2

Windpark Mallnow GmbH & Co. KG, DE, Potsdam2

WINDPARK Mutzschen OHG, DE, Potsdam2

Windpark Naundorf OHG, DE, Potsdam2

Windpark Nohfelden-Eisen GmbH, DE, Nohfelden6

Windpark Oberthal GmbH, DE, Oberthal6

Stake Name, Location
49.0 Windpark Paffendorf GmbH & Co. KG, DE, Bergheim6
20.3 Windpark Perl GmbH, DE, Perl6
45.0 Windpark Verwaltungsgesellschaft mbH, DE, Lützen2
80.0 Windpark Wadern-Felsenberg GmbH, DE, Wadern2
100.0 WKH Windkraft Hochheim Management GmbH, DE, Lützen2
25.1 WLN Wasserlabor Niederrhein GmbH, DE, Mönchengladbach6
83.3 WPB Windpark Börnicke GmbH & Co. KG, DE, Lützen2
51.0 WVG - Warsteiner Verbundgesellschaft mbH, DE, Warstein6
55.1 WVG Netz Holding GmbH, DE, Warstein6
100.0 WVL Wasserversorgung Losheim GmbH, DE, Losheim am See6
51.0 WVM Wärmeversorgung Maßbach GmbH, DE, Maßbach6
51.0
50.0 WWS Wasserwerk Saarwellingen GmbH, DE, Saarwellingen6
100.0 WWW Wasserwerk Wadern GmbH, DE, Wadern6
100.0 Zagrebacke otpadne vode - upravljanje i pogon d.o.o., HR, Zagreb6
77.8 Zagrebacke otpadne vode d.o.o., HR, Zagreb4
66.7 Západoslovenská energetika a.s. (ZSE), SK, Bratislava4
50.0 Zwickauer Energieversorgung GmbH, DE, Zwickau5
35.0

WVW Wasser- und Energieversorgung Kreis St. Wendel Gesellschaft
mit beschränkter Haftung, DE, St. Wendel6

Stake

49.0

42.0

100.0

45.0

100.0

25.1

49.9

22.2

28.1

49.0

29.0

48.5

49.0

27.0

247

E.ON Integrated Annual Report 2023

Consolidated Financial Statements

Contents

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→ Consolidated Statement of Income

→ Consolidated Statement of Recognized Income and Expenses

→ Consolidated Balance Sheets

→ Consolidated Statement of Cash Flows

→ Consolidated Statement of Changes in Equity

→ Notes

Stake %

100.0
100.0
100.0
100.0
100.0
100.0
100.0

Disclosures Pursuant to Section 313 (2) HGB of Companies in Which Equity Investments Are Held (as of December 31, 2023)
Name, Location
Consolidated investment funds
HANSEFONDS, DE, Düsseldorf1
MI-FONDS 178, DE, Frankfurt am Main1
MI-FONDS F55, DE, Frankfurt am Main1
MI-FONDS G55, DE, Frankfurt am Main1
MI-FONDS J55, DE, Frankfurt am Main1
MI-FONDS K55, DE, Frankfurt am Main1
OB 2, DE, Düsseldorf1

5.3
3.4
5.1
-
17.2
-499.5
-6.2
6.5
-
-
-
-
-
-
-16.8
1) Consolidated affiliated company. 2) Non-consolidated affiliated company for reasons of immateriality (valued at cost). 3) Joint operations pursuant to IFRS 11. 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of
immateriality). 4) Joint ventures pursuant to IFRS 11. 5) Associated company (valued using the equity method). 6) Associated company (valued at cost for reasons of immateriality). 7) Investments pursuant to Section 313 (2) No. 5 HGB. 8) This company exercised its exemption option under Section 264, Paragraph
3 of the German Commercial Code or under Section 264b. 9) Control by virtue of company contract. 10) No control by virtue of company contract. 11) Significant influence via indirect investments. 12) Structured entity pursuant to IFRS 10 and 12. 13) Affiliated company which is held by E.ON Pension Trust e.V. on
behalf of E.ON SE. 14) Other equity investment which is held by E.ON Pension Trust e.V. on behalf of E.ON SE. 15) Taking into account own shares.

Name, Location
Investments Pursuant to Section 313 (2) No. 5 HGB
BEW Bergische Energie- und Wasser-Gesellschaft mit beschränkter Haftung, DE, Wipperfürth7
Energieversorgung Limburg Gesellschaft mit beschränkter Haftung, DE, Limburg an der Lahn7
ENNI Energie & Umwelt Niederrhein GmbH, DE, Moers7
Herzo Werke GmbH, DE, Herzogenaurach7
infra fürth gmbh, DE, Fürth7
Nord Stream AG, CH, Zug7, 14
PSI Software SE, DE, Berlin7
Stadtwerke Bamberg Energie- und Wasserversorgungs GmbH, DE, Bamberg7
Stadtwerke Detmold GmbH, DE, Detmold7
Stadtwerke Hof Energie+Wasser GmbH, DE, Hof7
Stadtwerke Neuss Energie und Wasser GmbH, DE, Neuss7
Stadtwerke Straubing Strom und Gas GmbH, DE, Straubing7
Stadtwerke Wertheim GmbH, DE, Wertheim7
SWT Stadtwerke Trier Versorgungs-GmbH, DE, Trier7
Thermondo GmbH, DE, Berlin7

35.2
28.4
70.6
20.3
79.6
2,431.0
80.3
30.1
31.5
22.1
88.3
15.8
20.5
57.3
-10.8

19.5
10.0
18.1
19.9
19.9
15.5
17.8
10.0
12.5
19.9
17.5
19.9
10.0
18.7
17.5

Stake %

Equity € in millions

Earnings € in millions

248

E.ON Integrated Annual Report 2023

Contents

Back

Non-Financial Statement (“NFS”) Index

Sustainable Development Goals (“SDG”)-Index

291

292

Sustainable Accounting Standards Board (“SASB”) Index 293

Financial Calendar and Imprint

299

Other Information

Declaration of the Board of Management

Independent auditor’s report

Independent Assurance Practitioner's Report

Boards

Supervisory Board (and Information on Other
Directorships)
Management Board (and Information on Other
Directorships)

Summary of Financial Highlights

Task Force on Climate-related Financial Disclosures
(“TCFD”)

ESG Figures

EU Taxonomy

Global Reporting Initiative (“GRI”) Index

250

251

257

260

263

264

266

267

272

285

249

E.ON Integrated Annual Report 2023

Other Information

Contents

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→ Declaration of the Management Board

→ Independent Auditor’s Report

→ Independent Assurance Practitioner's Report

→ Boards

→ Summary of Financial Highlights

→ TCFD

→ ESG Figures

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SDG Index

→ SASB Index

→ Financial Calendar and Imprint

Declaration of the Board of Management

To the best of our knowledge, we declare that, in accordance with applicable financial reporting principles, the Annual Financial
Statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company, and the Management
Report of the Company, which is combined with the Group Management Report, provides a fair review of the development and
performance of the business and the position of the Company, together with a description of the principal opportunities and risks
associated with the expected development of the Company.

Essen, Germany, March 4, 2024

The Management Board

Birnbaum

König

Lammers

Ossadnik

Spieker

250

E.ON Integrated Annual Report 2023

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Contents

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→ Declaration of the Management Board

→ Independent Auditor’s Report

→ Independent Assurance Practitioner's Report

→ Boards

→ Summary of Financial Highlights

→ TCFD

→ ESG Figures

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SDG Index

→ SASB Index

→ Financial Calendar and Imprint

Independent auditor’s report

To E.ON SE, Essen

Report on the Audit of the Consolidated Financial
Statements and the Combined Group Management
Report

Opinions
We have audited the consolidated financial statements of E.ON SE,
Essen, and its subsidiaries (the Group), which comprise the
statement of income, the statement of recognised income and
expenses, the consolidated balance sheet, the consolidated
statement of cash flows and the consolidated statement of
changes in equity for the financial year from 1 January to 31
December 2023, and notes to the consolidated financial
statements, including a summary of significant accounting
policies. In addition, we have audited the management report of
the Company and the Group (hereinafter referred to as “combined
group management report”) of E.ON SE for the financial year from
1 January to 31 December 2023.

In accordance with German legal requirements, we have not
audited the content of those components of the combined
management report specified in the "Other Information" section of
our auditor's report.

In our opinion, on the basis of the knowledge obtained in the audit,

• the accompanying consolidated financial statements comply, in
all material respects, with the IFRSs as adopted by the EU, and
the additional requirements of German commercial law pursuant
to Section 315e (1) HGB [Handelsgesetzbuch: German
Commercial Code] and, in compliance with these requirements,
give a true and fair view of the assets, liabilities, and financial
position of the Group as at 31 December 2023, and of its
financial performance for the financial year from 1 January to
31 December 2023, and

• the accompanying combined group management report as a

whole provides an appropriate view of the Group's position. In all
material respects, this combined group management report is
consistent with the consolidated financial statements, complies
with German legal requirements and appropriately presents the
opportunities and risks of future development. Our opinion on
the combined group management report does not cover the
content of those components of the combined group
management report specified in the "Other Information" section
of the auditor's report.

Pursuant to Section 322 (3) sentence 1 HGB, we declare that our
audit has not led to any reservations relating to the legal
compliance of the consolidated financial statements and of the
combined group management report..

Basis for the Opinions
We conducted our audit of the consolidated financial statements
and of the combined group management report in accordance with
Section 317 HGB and the EU Audit Regulation No 537/2014
(referred to subsequently as "EU Audit Regulation") and in
compliance with German Generally Accepted Standards for
Financial Statement Audits promulgated by the Institut der
Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW).
Our responsibilities under those requirements and principles are
further described in the "Auditor's Responsibilities for the Audit of
the Consolidated Financial Statements and of the Combined group
management report" section of our auditor's report. We are
independent of the group entities in accordance with the
requirements of European law and German commercial and
professional law, and we have fulfilled our other German
professional responsibilities in accordance with these
requirements. In addition, in accordance with Article 10 (2) (f) of
the EU Audit Regulation, we declare that we have not provided
non-audit services prohibited under Article 5 (1) of the EU Audit
Regulation. We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our opinions on the

consolidated financial statements and on the combined group
management report.

Key Audit Matters in the Audit of the Consolidated
Financial Statements
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
consolidated financial statements for the financial year from 1
January to 31 December 2023. These matters were addressed in
the context of our audit of the consolidated financial statements as
a whole, and in forming our opinion thereon, we do not provide a
separate opinion on these matters.

Accounting for derivatives relating to sales and
procurement contracts for electricity and gas supplies
(commodity forward transactions) and provisions for sales-
related onerous contracts
Please refer to Note [1] to the consolidated financial statements
for information on the accounting policies applied. The disclosures
on Accounting for derivatives relating to sales and procurement
contracts for electricity and gas supplies (commodity forward
transactions) and provisions for sales-related onerous contracts
are presented in the notes to the consolidated financial statements
under notes [9], [18], [26] and [27].

THE FINANCIAL STATEMENT RISK
In the consolidated financial statements as at 31 December 2023
E.ON SE recognised market values for derivatives in connection
with commodity forward transactions of EUR 6.7 billion in the
other operating assets and market values of EUR 10.8 billion in the
non-current and current (other) operating liabilities for
procurement and sales transactions that are accounted for at fair
value in accordance with the provisions of IFRS 9: Financial
Instruments. Provisions for onerous contracts were reported in the
amount of EUR 0.1 billion.

E.ON maintains portfolios of sales and procurement contracts for
electricity and gas supplies with various customer and supplier

251

E.ON Integrated Annual Report 2023

Other Information

Contents

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→ Declaration of the Management Board

→ Independent Auditor’s Report

→ Independent Assurance Practitioner's Report

→ Boards

→ Summary of Financial Highlights

→ TCFD

→ ESG Figures

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SDG Index

→ SASB Index

→ Financial Calendar and Imprint

groups (commodity forward transactions), of which some are
recognised as executory contracts pursuant to the own-use
provisions of IFRS 9 in accordance with the provisions of IAS 37
and some are recognised as financial instruments at fair value. The
contracts in these portfolios are predominantly entered and
processed by way of mass processes.

Discretion is required when determining whether a commodity
forward transaction was concluded to satisfy own requirements
and is being held for this purpose and therefore fulfils the own-use
criteria on initial and subsequent recognition. In compliance with
the requirements of IFRS 9, the underlying contracts are to be
classified as "own use" contracts or as derivative financial
instruments and monitored on an ongoing basis. With regard to
the consolidated financial statements, there is a risk that these
may be incompletely or incorrectly recognised and/or incorrectly
classified. There is also the risk that a change in purpose at a later
date will not be recognised and the contracts will not be properly
accounted for.

Fair values are to be determined for the commodity forward
transactions classified as derivative financial instruments.
Provided that no market prices are observable, the fair values are
to be determined on the basis of recognised valuation methods.
The methods, assumptions and data used for this purpose require
judgement. There is a risk for the financial statements that the
other operating assets, the (other) operating liabilities and the
other operating income will not be measured or determined in line
with the accounting requirements.

In the context of its business activities, E.ON fulfils its sales
obligations towards customers through commodity forward
transactions. If there is a risk of losses from sales obligations,
provisions for onerous contracts must be recognised. The amount
of the provisions is determined based on the best possible
estimate of the amount by which the unavoidable costs of fulfilling
the contract will exceed the expected economic benefit of the
contract, i.e. generally the agreed sales price for sales transactions.

A direct allocation of procurement transactions to individual sales
obligations is generally not possible for electricity and gas supply
companies and thus also not possible within the E.ON Group. The
recognition and measurement of recognised provisions for onerous
contracts from pending sales transactions – in due consideration
of the various procurement transactions of the E.ON Group – are
consequently based on complex allocations and calculations for
the sales portfolios of the E.ON Group as well as estimates
requiring judgement by management, for example the future
expected contribution margins of the sales portfolios. There is the
risk for the consolidated financial statements that provisions are
not recognised or not in the amount required.

OUR AUDIT APPROACH
In the course of our audit, we obtained a comprehensive insight
into the development of commodity forward transactions and the
associated risks as well as an understanding of E.ON's process
used to record and classify these transactions and to recognise and
assess sales from the portfolio in terms of the permissibility of the
own-use criteria.

For the IT and individual data processing systems deployed, with
the involvement of our IT specialists we evaluated the
effectiveness of the rules and procedures relating to a large
number of IT applications and which support the effectiveness of
the application controls.

With the involvement of our specialists for financial instruments,
we assessed the appropriateness, implementation and
effectiveness of the controls established by E.ON to recognise and
classify commodity forward transactions and to completely and
accurately recognise and assess sales from the portfolio in terms
of the permissibility of the own-use criteria.

We used analyses to satisfy ourselves that the commodity forward
transactions were properly recognised and classified. In the case of
sales, we assessed whether there was a change in purpose and

whether it was recognised in the consolidated balance sheet
appropriately.

Furthermore, with regard to the measurement of commodity
forward transactions for which no market prices are observable,
we made enquiries with the involvement of our valuation
specialists and gained insight into the relevant documents and, in
doing so, assessed the selection of methods, data and assumptions
used for measurement. To assess the methodically and
mathematically correct implementation of the valuation method,
our valuation experts verified E.ON's valuation using their own
calculations and analysed deviations for a risk-based selection.
Price and market information observable in the market were used
where possible.

In addition, we assessed the appropriateness of the key data and
assumptions as well as the method used by E.ON in relation to the
recognition of provisions for onerous contracts for sales portfolios.
To this end, we verified the allocations of the procurement
transactions to the sales portfolios and also discussed the
expected future contribution margins in the various sales
portfolios of the E.ON Group with those responsible for planning.
To ensure the computational accuracy of the method used, we
verified the Company's calculations on the basis of selected risk-
based elements.

OUR OBSERVATIONS
The recognition, classification and ongoing monitoring of
commodity forward transactions has been carried out
appropriately. The methods, assumptions and data used to
measure commodity forward transactions and provisions for
onerous contracts are appropriate.

Recoverability of goodwill
Please refer to Note [1] to the consolidated financial statements
for information on the accounting policies applied. Disclosures on
the assumptions made and the amount of goodwill can be found
under note [15] to the consolidated financial statements and

252

E.ON Integrated Annual Report 2023

Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

disclosures on the financial performance of the business segments
in section [35] of the combined group management report.

THE FINANCIAL STATEMENT RISK
Goodwill amounts to EUR 17.1 billion as at 31 December 2023
and, at 86% of consolidated equity, constitutes a significant
proportion of the assets.

Goodwill is tested for impairment annually, irrespective of any
indication of impairment, as at 1 October. If impairment triggers
arise during the financial year, an event-driven goodwill
impairment test is also carried out during the year. The goodwill is
allocated to the cash-generating units or groups of cash-
generating units, which essentially correspond to the operating
segments at the E.ON Group. For the goodwill impairment test, the
carrying amount is compared with the recoverable amount of the
relevant cash-generating units or groups of cash-generating units.
If the carrying amount exceeds the recoverable amount, an
impairment loss is recognised. At E.ON, the recoverable amount is
initially calculated as the fair value less costs to sell.

The goodwill impairment test is complex and based on a number of
assumptions requiring judgement. These include the estimate of
the expected business and earnings performance of the operating
segments, the assumed long-term growth rates and the discount
rate used.

On 11 September 2023, the Board of Management of E.ON
passed a resolution on a new management concept for the E.ON
Group. The concept is effective from 1 January 2024 and requires
a change in the definition of some segments according to IFRS 8
and, in this context, a reallocation of the current goodwill for all
segments affected by the changes and carrying goodwill as at 1
January 2024. The Board of Management's decision was seen as
an event triggering testing of the recoverability of goodwill for the
segments affected by the changes and carrying goodwill.

As a result of the impairment tests conducted, the Company did
not identify any need for impairment. Furthermore, no
requirement to recognise an impairment loss was identified in the
course of the annual impairment testing.

There is the risk for the consolidated financial statements that
impairment existing as at the reporting date was not identified.
There is also the risk that the related disclosures in the notes are
not appropriate).

performed by the Company using our own calculations and
analysed deviations.

In order to take account of the existing forecast uncertainty and
the early cut-off date for impairment testing, we investigated the
impact of possible changes in the discount rate, earnings
performance and the long-term growth rate on the recoverable
amount by calculating alternative scenarios and comparing them
with the values stated by the Company (sensitivity analysis).

OUR AUDIT APPROACH
First, we obtained an understanding of the process for impairment
testing of goodwill through explanations provided by staff of the
finance organisation and by evaluating the Company’s
documentation. With the involvement of our valuation experts, we
assessed (among other things) the appropriateness of the
significant assumptions and the Company's calculation method for
both annual as well as indicator-based (ad hoc) impairment
testing. To this end, we discussed and validated the expected cash
flows and the assumed long-term growth rates with those
responsible for planning. We also carried out reconciliations with
the budget drawn up by management and approved by the
Supervisory Board for the following year and the medium-term
planning, including the projected development for the next three to
five years, that has been acknowledged by the Supervisory Board.
In addition, we assessed the consistency of the assumptions with
external market forecasts.

We also confirmed the accuracy of the Company's previous
forecasts by comparing the budgets of previous financial years
with actual results and by analysing deviations. We compared the
assumptions and data underlying the weighted average cost of
capital, especially the risk-free interest rate, the market risk
premium and the beta factor, with our own assumptions and
publicly available data.

Finally, we assessed whether the disclosures in the notes
regarding impairment of goodwill are appropriate.

OUR OBSERVATIONS
The calculation method used for impairment testing of goodwill is
appropriate and in line with the accounting policies to be applied.

The Company's assumptions and data underlying the
measurement are appropriate.

The related disclosures in the notes are appropriate.

Other Information

The The Board of Management and/or the Supervisory Board are
responsible for the other information. The other information
comprises the following components of the combined group
management report, whose content was not audited:

• the sections marked as "not part of the statutory audit" and the
disclosures contained there and thus marked as unaudited; and

• the combined corporate governance statement of the Company
and the Group referred to in the combined group management
report.

To assess the methodically and mathematically correct
implementation of the valuation method, we verified the valuation

The other information also includes the remaining parts of the
annual report. The other information does not include the

253

E.ON Integrated Annual Report 2023

Other Information

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→ Independent Auditor’s Report

→ Independent Assurance Practitioner's Report

→ Boards

→ Summary of Financial Highlights

→ TCFD

→ ESG Figures

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SDG Index

→ SASB Index

→ Financial Calendar and Imprint

consolidated financial statements, the combined group
management report information audited for content and our
auditor's report thereon.

Our opinions on the consolidated financial statements and on the
combined management report do not cover the other information,
and consequently we do not express an opinion or any other form
of assurance conclusion thereon.

In connection with our audit, our responsibility is to read the other
information and, in so doing, to consider whether the other
information

• is materially inconsistent with the consolidated financial

statements, with the combined group management report
information audited for content or our knowledge obtained in
the audit, or

• otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this
regard.

Responsibility of the Board of Management and the
Supervisory Board for the Consolidated Financial
Statements and the Combined group management
report

Board of Management is responsible for the preparation of
consolidated financial statements that comply, in all material
respects, with IFRSs as adopted by the EU, and the additional
requirements of German commercial law pursuant to Section 315e
(1) HGB and that the consolidated financial statements, in
compliance with these requirements, give a true and fair view of
the assets, liabilities, financial position, and financial performance
of the Group. In addition, the Board of Management is responsible

for such internal control as they have determined necessary to
enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud (i.e.,
fraudulent financial reporting and misappropriation of assets) or
error.

In preparing the consolidated financial statements, the Board of
Management is responsible for assessing the Group's ability to
continue as a going concern. They also have the responsibility for
disclosing, as applicable, matters related to going concern. In
addition, they are responsible for financial reporting based on the
going concern basis of accounting unless there is an intention to
liquidate the Group or to cease operations, or there is no realistic
alternative but to do so.

Furthermore, the Board of Management is responsible for the
preparation of the combined group management report that, as a
whole, provides an appropriate view of the Group's position and is,
in all material respects, consistent with the consolidated financial
statements, complies with German legal requirements, and
appropriately presents the opportunities and risks of future
development. In addition, the Board of Management is responsible
for such arrangements and measures (systems) as it has
considered necessary to enable the preparation of a combined
group management report that is in accordance with the
applicable German legal requirements, and to be able to provide
sufficient appropriate evidence for the assertions in the combined
group management report.

The Supervisory Board is responsible for overseeing the Group's
financial reporting process for the preparation of the consolidated
financial statements and of the combined group management
report.

Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements and of the
Combined group management report

Our objectives are to obtain reasonable assurance about whether
the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and whether
the combined group management report as a whole provides an
appropriate view of the Group’s position and, in all material
respects, is consistent with the consolidated financial statements
and the knowledge obtained in the audit, complies with the
German legal requirements and appropriately presents the
opportunities and risks of future development, as well as to issue
an auditor’s report that includes our opinions on the consolidated
financial statements and on the combined group management
report.

Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with Section 317
HGB and the EU Audit Regulation and in compliance with German
Generally Accepted Standards for Financial Statement Audits
promulgated by the Institut der Wirtschaftsprüfer (IDW) will
always detect a material misstatement. Misstatements can arise
from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
consolidated financial statements and this combined management
report.

We exercise professional judgement and maintain professional
scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the
consolidated financial statements and of the combined group
management report, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a
basis for our opinions. The risk of not detecting a material
misstatement resulting from fraud is higher than the risk of not
detecting a material misstatement resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal controls.

254

E.ON Integrated Annual Report 2023

Other Information

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

• Obtain an understanding of internal control relevant to the audit
of the consolidated financial statements and of arrangements
and measures (systems) relevant to the audit of the combined
group management report in order to design audit procedures
that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of these
systems.

• Evaluate the appropriateness of accounting policies used by the
Board of Management and the reasonableness of estimates
made by the Board of Management and related disclosures.

• Conclude on the appropriateness of the Board of Management's
use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt
on the Group's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to
draw attention in the auditor's report to the related disclosures
in the consolidated financial statements and in the combined
group management report or, if such disclosures are inadequate,
to modify our respective opinions. Our conclusions are based on
the audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause the
Group to cease to be able to continue as a going concern.

• Evaluate the overall presentation, structure and content of the

consolidated financial statements, including the disclosures, and
whether the consolidated financial statements present the
underlying transactions and events in a manner that the
consolidated financial statements give a true and fair view of the
assets, liabilities, financial position and financial performance of
the Group in compliance with IFRSs as adopted by the EU and
the additional requirements of German commercial law pursuant
to Section 315e (1) HGB.

• Obtain sufficient appropriate audit evidence regarding the

financial information of the entities or business activities within

the Group to express opinions on the consolidated financial
statements and on the combined group management report. We
are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for our opinions.

describe these matters in our auditor's report unless law or
regulation precludes public disclosure about the matter.

Other Legal and Regulatory Requirements

• Evaluate the consistency of the combined group management

report with the consolidated financial statements, its conformity
with [German] law, and the view of the Group's position it
provides.

• Perform audit procedures on the prospective information
presented by the Board of Management in the combined
groupmanagement report. On the basis of sufficient appropriate
audit evidence we evaluate, in particular, the significant
assumptions used by the Board of Management as a basis for
the prospective information, and evaluate the proper derivation
of the prospective information from these assumptions. We do
not express a separate opinion on the prospective information
and on the assumptions used as a basis. There is a substantial
unavoidable risk that future events will differ materially from the
prospective information.

We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.

We also provide those charged with governance with a statement
that we have complied with the relevant independence
requirements, and communicate with them all relationships and
other matters that may reasonably be thought to bear on our
independence, and where applicable, the actions taken or
safeguards applied to eliminate independence threats.

From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of
the current period and are therefore the key audit matters. We

Report on the Assurance of the Electronic Rendering of the
Consolidated Financial Statements and of the Combined
group management report Prepared for Publication
Purposes in Accordance with Section 317 (3a) HGB
We have performed assurance work in accordance with Section
317 (3a) HGB to obtain reasonable assurance about whether the
rendering of the consolidated financial statements and the
combined group management report (hereinafter the “ESEF
documents”) contained in the electronic file "eonse-2023-12-31-
de.zip" (SHA256 hash value: b440da7cdb4aece754fc04926a
89a446 b658ad1e0c4144e779a031ce6894f2ae) made available
and prepared for publication purposes complies in all material
respects with the requirements of Section 328 (1) HGB for the
electronic reporting format (“ESEF format”). In accordance with
German legal requirements, this assurance work extends only to
the conversion of the information contained in the consolidated
financial statements and the combined group management report
into the ESEF format and therefore relates neither to the
information contained in these renderings nor to any other
information contained in the file identified above.

In our opinion, the rendering of the consolidated financial
statements and the combined group management report
contained in the electronic file made available, identified above and
prepared for publication purposes complies in all material respects
with the requirements of Section 328 (1) HGB for the electronic
reporting format. Beyond this assurance opinion and our audit
opinion on the accompanying consolidated financial statements
and the accompanying combined group management report for
the financial year from 1 January to 31 December 2023, contained
in the "Report on the Audit of the Consolidated Financial
Statements and the Combined group management report" above,
we do not express any assurance opinion on the information

255

E.ON Integrated Annual Report 2023

Other Information

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→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

contained within these renderings or on the other information
contained in the file identified above.

328 (1) HGB. We exercise professional judgement and maintain
professional scepticism throughout the assurance work. We also:

We conducted our assurance work on the rendering of the
consolidated financial statements and the combined group
management report contained in the file made available and
identified above in accordance with Section 317 (3a) HGB and the
IDW Assurance Standard: Assurance Work on the Electronic
Rendering of Financial Statements and Management Reports
Prepared for Publication Purposes in Accordance with Section 317
(3a) HGB (IDW AsS 410 (06.2022)). Our responsibility in
accordance therewith is further described below. Our audit firm
applies the IDW Standard on Quality Management 1:
Requirements for Quality Management in Audit Firms (IDW QMS
1 (09.2022)).

The Company's Board of Management is responsible for the
preparation of the ESEF documents including the electronic
rendering of the consolidated financial statements and the
combined group management report in accordance with Section
328 (1) sentence 4 item 1 HGB and for the tagging of the
consolidated financial statements in accordance with Section 328
(1) sentence 4 item 2 HGB.

In addition, the Company's Board of Management is responsible
for such internal control as it has considered necessary to enable
the preparation of ESEF documents that are free from material
intentional or unintentional non-compliance with the requirements
of Section 328 (1) HGB for the electronic reporting format.

The Supervisory Board is responsible for overseeing the process of
preparing the ESEF documents as part of the financial reporting
process.

Our objective is to obtain reasonable assurance about whether the
ESEF documents are free from material intentional or
unintentional non-compliance with the requirements of Section

• Identify and assess the risks of material intentional or

unintentional non-compliance with the requirements of Section
328 (1) HGB, design and perform assurance procedures
responsive to those risks, and obtain assurance evidence that is
sufficient and appropriate to provide a basis for our assurance
opinion.

• Obtain an understanding of internal control relevant to the

assurance on the ESEF documents in order to design assurance
procedures that are appropriate in the circumstances, but not for
the purpose of expressing an assurance opinion on the
effectiveness of these controls.

• Evaluate the technical validity of the ESEF documents, i.e.

whether the file made available containing the ESEF documents
meets the requirements of the Commission Delegated
Regulation (EU) 2019/815, as amended as at the reporting date,
on the technical specification for this electronic file.

• Evaluate whether the ESEF documents provide an XHTML

rendering with content equivalent to the audited consolidated
financial statements and the audited combined group
management report.

• Evaluate whether the tagging of the ESEF documents with Inline
XBRL technology (iXBRL) in accordance with the requirements
of Articles 4 and 6 of the Commission Delegated Regulation (EU)
2019/815, as amended as at the reporting date, enables an
appropriate and complete machine-readable XBRL copy of the
XHTML rendering.

Committee of the Supervisory Board on 6 December 2023. We
have been the group auditor of E.ON SE without interruption since
financial year 2021.

We declare that the opinions expressed in this auditor's report are
consistent with the additional report to the Audit Committee
pursuant to Article 11 of the EU Audit Regulation (long-form audit
report).

Other Matter – Use of the Auditor’s Report

Our auditor's report must always be read together with the
audited consolidated financial statements and the audited
combined group management report as well as the examined ESEF
documents. The consolidated financial statements and combined
group management report converted to the ESEF format –
including the versions to be entered in the German Company
Register [Unternehmensregister] – are merely electronic
renderings of the audited consolidated financial statements and
the audited combined group management report and do not take
their place. In particular, the ESEF report and our assurance
opinion contained therein are to be used solely together with the
examined ESEF documents provided in electronic form.

German Public Auditor Responsible for the
Engagement

The German Public Auditor responsible for the engagement is
Gereon Lurweg.

Düsseldorf, 5 March 2024

KPMG AG
Wirtschaftsprüfungsgesellschaft

Further Information pursuant to Article 10 of the EU Audit
Regulation
We were elected as group auditor at the Annual General Meeting
on 17 May 2023. We were engaged by the Audit and Risk

Kneisel
Wirtschaftsprüfer
[German Public Auditor]

Lurweg
Wirtschaftsprüfer
[German Public Auditor]

256

E.ON Integrated Annual Report 2023

Other Information

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→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Independent Assurance Practitioner's Report2

Responsibilities of Management

To the supervisory board of E.ON SE, Essen

We have performed a limited assurance engagement of the
combined consolidated non-financial statement integrated in the
combined management report of the company and the group
(hereinafter the “consolidated non-financial statement”) and
further qualitative and quantitative sustainability information of
E.ON SE, Essen (hereinafter the “company”), with reference to the
Standards of Global Reporting Initiative (GRI), which are marked
accordingly with  and ►◄, for the period from January 1 to
December 31, 2023.

Furthermore, we have performed a reasonable assurance
engagement on selected parts of the qualitative and quantitative
sustainability information marked accordingly with  of the
company with reference to the Standards of Global Reporting
Initiative (GRI) for the period from January 1 to December 31,
2023.

Not subject to our assurance engagement are parts marked with
 or › ‹.

Also, not subject to our assurance engagement are external
sources of documentation or expert opinions, which are marked as
unassured.

Furthermore, not subject to our assurance engagement are the
qualitative and quantitative information covered by the statutory
auditor’s report.

Management of the company is responsible for the preparation of
the consolidated non-financial statement for the period from
January 1 to December 31 2023 in accordance with Sections
289c to 289e and 315c in conjunction with 289c to 289e HGB
(“Handelsgesetzbuch”: German Commercial Code) and Article 8 of
REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL of June 18, 2020 on establishing a
framework to facilitate sustainable investment and amending
Regulation (EU) 2019/2088 (hereinafter the “EU Taxonomy
Regulation“) and the Delegated Acts adopted thereunder, as well
as for making their own interpretation of the wording and terms
contained in the EU Taxonomy Regulation and the delegated acts
adopted thereunder as set out in section “EU Taxonomy”.

Moreover, the management of the company is responsible for the
preparation of the further qualitative and quantitative
sustainability information for the period from January 1 to
December 31 2023 in accordance with the sustainability reporting
standards of E.ON SE (hereinafter the “reporting criteria”), which
reference to the Standards of Global Reporting Initiative (GRI).

This responsibility includes the selection and application of
appropriate non-financial reporting methods and making
assumptions and estimates about individual non-financial
disclosures of the group and qualitative and quantitative
sustainability information that are reasonable in the
circumstances. Furthermore, management is responsible for such
internal control as they consider necessary to enable the
preparation of a consolidated non-financial statement that is free
from material misstatement, whether due to fraud or error
(manipulation of the consolidated non-financial statement as well

as the further qualitative and quantitative sustainability
information).

The EU Taxonomy Regulation and the Delegated Acts issued
thereunder contain wording and terms that are still subject to
considerable interpretation uncertainties and for which
clarifications have not yet been published in every case. Therefore,
management has disclosed their interpretation of the EU
Taxonomy Regulation and the Delegated Acts adopted thereunder
in section “EU Taxonomy“ of the consolidated non-financial
statement. They are responsible for the defensibility of this
interpretation. Due to the immanent risk that indeterminate legal
terms may be interpreted differently, the legal conformity of the
interpretation is subject to uncertainties.

Independence and Quality Assurance of the Assurance
Practitioner’s firm

We have complied with the independence and quality assurance
requirements set out in the national legal provisions and
professional pronouncements, in particular the Professional Code
for German Public Auditors and Chartered Accountants (in
Germany) and the quality assurance standard of the German
Institute of Public Auditors (Institut der Wirtschaftsprüfer, IDW)
regarding quality assurance requirements in audit practice (IDW
QMS 1 (09.2022)).

Responsibility of the Assurance Practitioner

Our responsibility is to express a conclusion based on our
assurance engagement

• with limited assurance on the consolidated non-financial

statement for the period from January 1 to December 31 2023

2The English language text below is a translation provided for information purposes only. The
original German text shall prevail in the event of any discrepancies between the English translation

and the German original. We do not accept any liability for the use of, or reliance on, the English
translation or for any errors or misunderstandings that may arise from the translation.

257

E.ON Integrated Annual Report 2023

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

in accordance with Sections 289c to 289e and 315c in
conjunction with 289c to 289e HGB (“Handelsgesetzbuch”:
German Commercial Code) and the EU Taxonomy Regulation
and the Delegated Acts adopted thereunder, as well as for
management’s own interpretation of the wording and terms
contained in the EU Taxonomy Regulation and the delegated
acts adopted thereunder as set out in section “EU Taxonomy“

to 289e HGB and the EU Taxonomy Regulation and the
Delegated Acts issued thereunder as well as the interpretation
by management disclosed in section “EU Taxonomy“

• Inspecting selected internal and external documents.

• Analytical procedures of the data and trends of the quantitative
information reported for consolidation at group level by all sites.

• the further qualitative and quantitative sustainability

information of the company, which are marked accordingly with
 and ►◄, have not been prepared, in all material respects, in
accordance with the reporting criteria.

• Evaluation of local data collection, validation and reporting

processes as well as the reliability of reported data based on a
sample of individual cases.

• with limited assurance on the further qualitative and

quantitative sustainability information, which are marked
accordingly with  and ►◄

• with reasonable assurance on the further qualitative and
quantitative sustainability information, which are marked
accordingly with 

In a limited assurance engagement, the procedures performed are
less extensive than in a reasonable assurance engagement, and
accordingly, a substantially lower level of assurance is obtained.
The selection of the assurance procedures is subject to the
professional judgment of the assurance practitioner.

except for the information marked as unassured and external
sources of documentation or expert opinions mentioned therein.

In the course of our assurance engagement we have, among other
procedures, performed the following assurance procedures and
other activities:

Limited Assurance engagement

We conducted our assurance engagement for the consolidated
non-financial statement and for the further qualitative and
quantitative sustainability information, which are marked
accordingly with  and ►◄, in accordance with International
Standard on Assurance Engagements (ISAE) 3000 (Revised):
“Assurance Engagements other than Audits or Reviews of
Historical Financial Information“ issued by the IAASB as a limited
assurance engagement. This standard requires that we plan and
perform the assurance engagement to obtain limited assurance
about whether any matters have come to our attention that cause
us to believe that

• the consolidated non-financial statement of the company,

• Interviewing employees responsible for the materiality analysis

at group level in order to obtain an understanding on the
approach for identifying key issues and related reporting
boundaries of E.ON SE.

• Carrying out a risk assessment, including media analysis, to
identify relevant information on E.ON SE’s sustainability
performance in the reporting period.

processes for identifying, handling and monitoring information
on environmental, employee and social matters, respect for
human rights and combatting corruption and bribery, including
the consolidation of data.

except for the information marked as unassured and the external
sources of documentation or expert opinions mentioned therein,
have not been prepared, in all material respects, in accordance
with Sections 289c to 289e and 315c in conjunction with 289c

• Inquiries of group level personnel, who are responsible for the
disclosures on concepts, due diligence processes, results and
risks, the performance of internal control activities and the
consolidation of the disclosures.

With regard to the assurance of the non-financial disclosures on
the EU taxonomy, we performed the following supplementary
assurance procedures in particular:

• Inquiries of responsible employees at group level to obtain an

understanding of the approach to identify taxonomy eligible and
aligned economic activities in accordance with EU taxonomy.

• Assessing the design and implementation of systems and
procedures for identifying, processing and monitoring
information of revenue, capital expenditures and operating
expenditures for the taxonomy eligible and aligned economic
activities on group level as well as in significant local units.

• Inquiries of responsible employees at group level as well as in

significant local units, for determining disclosures of taxonomy
eligible and aligned economic activities, performing internal
control procedures and consolidating disclosures.

In determining the disclosures in accordance with Article 8 of the
EU Taxonomy Regulation, management is required to interpret
undefined legal terms. Due to the immanent risk that undefined
legal terms may be interpreted differently, the legal conformity of
their interpretation and, accordingly, our assurance engagement
thereon are subject to uncertainties.

• Assessing the design and implementation of systems and

• Assessment of the overall presentation of the information.

258

E.ON Integrated Annual Report 2023

Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Reasonable Assurance engagement

Assurance Opinions

Restriction of Use

Based on the assurance procedures performed and the evidence
obtained, nothing has come to our attention that causes us to
believe that

This assurance report is solely addressed to supervisory board of
E.ON SE, Essen.

We conducted our assurance engagement in accordance with the
International Standard on Assurance Engagements ISAE 3000
(Revised) as reasonable assurance engagement for the parts of the
further qualitative and quantitative sustainability information
accordingly marked with . This standard requires that we have
to comply with our professional duties and that we plan and
perform the assurance engagement in such a way that we,
respecting the principle of materiality, reach our conclusion with a
reasonable level of assurance. The selection of the assurance
procedures is subject to the own professional judgment of the
assurance practitioner.

In addition to the procedures described above, we have performed
the following procedures on the quantitative and qualitative
sustainability information:

• Assessment of the local data collection, validation, and reporting
processes, as well as the reliability of reported data, through an
additional sample of individual cases in significant local units.

• the consolidated non-financial statement of E.ON SE, Essen,
except the information marked as unassured and the external
sources of documentation or expert opinions mentioned therein,
for the period from January 1 to December 31, 2023 have not
been prepared in all material respects, in accordance with
Sections 289c to 289e and 315c in conjunction with 289c to
289e HGB and the EU Taxonomy Regulation and the Delegated
Acts issued thereunder as well as the interpretation by
management disclosed in section “EU Taxonomy“ and that

• the parts of further qualitative and quantitative sustainability
information, which are marked accordingly with  and ►◄
have not been prepared, in all material respects, in accordance
with the reporting criteria.

• Evaluation of the design and implementation and testing the
functionality of the systems and methods used to collect the
processing of the data, including the aggregation of this data for
selected disclosures.

In our opinion the parts of the further qualitative and quantitative
sustainability information accordingly marked with  of E.ON SE,
Essen, for the period from January 1 to December 31, 2023 have
been prepared in all material respects in accordance with the
reporting criteria.

Our assignment for E.ON SE and professional liability is governed
by the General Engagement Terms for Wirtschaftsprüfer (German
Public Auditors) and Wirtschaftsprüfungsgesellschaften (German
Public Audit Firms) (Allgemeine Auftragsbedingungen für
Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften) in the
version dated January 1, 2017
(https://www.kpmg.de/bescheinigungen/lib/aab_english.pdf). By
reading and using the information contained in this assurance
report, each recipient confirms having taken note of provisions of
the General Engagement Terms (including the limitation of our
liability for negligence to EUR 4 million as stipulated in No. 9) and
accepts the validity of the attached General Engagement Terms
with respect to us.

Duesseldorf, March 5, 2024

KPMG AG
Wirtschaftsprüfungsgesellschaft
[Original German version signed by:]

• Review of internal and external documents to determine

whether the selected information as presented in the report
corresponds to the relevant underlying sources and whether all
relevant information from the underlying sources is included in
the report.

We do not express an assurance opinion on the parts which are
marked separately with  or › ‹.

Krause

Herr
Wirtschaftsprüferin
[German Public Auditor]

Also, we do not express an assurance opinion on external sources
of documentation and expert opinions.

In our opinion, we obtained sufficient and appropriate evidence for
reaching conclusions on our assurance engagement.

Furthermore, we do not express an assurance opinion on the
qualitative and quantitative information covered by the statutory
auditor’s report.

259

E.ON Integrated Annual Report 2023

Other Information

Contents

Back

→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Boards

Supervisory Board (and Information on Other Directorships)

Erich Clementi
Chairman of the Supervisory Board, E.ON SE (since May 17,
2023); Deputy Chairman of the Supervisory Board, E.ON SE (until
May 17, 2023)
→ Deutsche Lufthansa AG1

Dr. Karl-Ludwig Kley (until May 17, 2023)
Chairman of the Supervisory Board, E.ON SE
→ Deutsche Lufthansa AG1 (Chairman)

Ulrich Grillo
Deputy Chairman of the Supervisory Board, E.ON SE (since May
17, 2023);
Chief Executive Officer, Grillo-Werke AG
→ Rheinmetall AG1 (Chair)
→ Grillo Zinkoxid GmbH2 (until October 31, 2023)
→ Rheinzink GmbH & Co. KG (until October 31, 2023)
→ Zinacor S.A.2 (until October 31, 2023)

Frank Werneke (since January 1, 2024)
Deputy Chairman of the Supervisory Board, E.ON SE (since
January 16, 2024);
Chairman of the United Services Trade Union (ver.di)
→ ZDF Studios GmbH

Christoph Schmitz (until December 31, 2023)
Deputy Chairman of the Supervisory Board, E.ON SE;
Member of the ver.di-Federal Executive Committee; Federal
Department Head, Financial Services, Utilities and Waste
Management, Media, Arts, Industry and Telecommunications/IT
→ AXA Konzern AG
→ Deutsche Telekom AG (since November 7, 2023)
→ Ruhrfestspiele Recklinghausen GmbH

Katja Bauer
Deputy Chairman of the Supervisory Board, E.ON Energie
Deutschland GmbH;
Deputy Chairman of the Works Council,
Wunstorf/Osnabrück/Kassel of E.ON Energie Deutschland GmbH;
Member of the Works Council, E.ON SE
Member of the Group Works Council, E.ON SE
→ E.ON Energie Deutschland GmbH2

Klaus Fröhlich
(until May 17, 2023, again since June 5, 2023)
Former member of the Management Board, Bayerische Motoren
Werke AG

Anke Groth (until May 17, 2023, again since June 5, 2023)
Member of the Supervisory Board
→ DKV Mobility Group SE
→ Mondi plc (since April 1, 2023)

Eugen-Gheorghe Luha
Chairman of the Gaz România gas trade union federation;
Chairman of the Employees‘ Representatives of Romania;
Member of the SE-Works Council, E.ON SE

Stefan May (until May 17, 2023, again since June 5, 2023)
Deputy Chairman of the Group Works Council, E.ON SE;
Chairman of the General Works Council, Westenergie
AG/Westnetz GmbH;
Chairman of the Works Council of the Münster Region, Westnetz
GmbH
→ Westenergie AG2

Szilvia Pinczésné Márton
Chairwoman of the works council of the E.ON Dél-dunántúli
Áramhálózati Zrt.;
Member of the SE works council of E.ON SE

Miroslav Pelouch (until May 17, 2023)
Deputy Chairman of the SE Works Council of E.ON SE; Chairman
of the Association of Basic Organizations of the ECHO Energy
Industry Trade Union Confederation in the E.ON companies in the
Czech Republic; Member of the Presidium of the ECHO Trade
Union Confederation
→ E.ON Energie a.s.2
→ EG.D a.s.2 (formerly E.ON Distribuce a.s.)

Unless otherwise indicated, information is as of December 31, 2023, or as of the date on which membership in the E.ON SE Supervisory Board ended.
→ Directorships/memberships in other statutory supervisory boards.
→ Directorships/memberships in comparable domestic and foreign supervisory bodies of commercial enterprises.
1Listed company.
2E.ON Group directorships/memberships.

260

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Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Nadège Petit (since May 17, 2023)
Chief Innovation Officer, Executive Vice President, of Schneider
Electric Industries SAS

René Pöhls
Deputy Chairman of the SE Works Council of E.ON SE;
Deputy Chairman of the Group Works Council of E.ON SE;
Chairman of the Group Works Council of envia Mitteldeutsche
Energie AG;
Chairman of the joint general works council and the joint
Halle/Kabelsketal works council of envia Mitteldeutsche Energie
AG, MITGAS Mitteldeutsche Gasbedarf GmbH, Mitteldeutsche
Netzgesellschaft Strom mbH and Mitteldeutsche Netzgesellschaft
Gas mbH
→ envia Mitteldeutsche Energie AG2

Andreas Schmitz
Management consultant
→ Scheidt & Bachmann GmbH (Chairman)

Dr. Rolf Martin Schmitz
Former Chief Executive Officer RWE AG
→ TÜV Rheinland AG
→ Encavis AG1 (Chair, since June 1, 2023)
→ Jaeger Grund GmbH & Co. KG (Jaeger Group, Chair)
→ Kärntner Energieholding Beteiligungs GmbH
→ KELAG-Kärntner Elektrizitäts-AG

Fred Schulz (until May 17, 2023)
Chairman of the SE Works Council, E.ON SE;
Deputy Chairman of the Group Works Council, E.ON SE;
Chairman of the General Works Council, E.DIS AG;
Chairman of the East Region Works Council, E.DIS Netz GmbH
→ E.DIS AG2
→ Szczecińska Energetyka Cieplna Sp. z o.o.2

Dr. Karen de Segundo (until May 17, 2023)
Attorney

Ewald Woste (until May 17, 2023)
Management consultant
→ Bayernwerk AG2 (until March 31, 2023)
→ GASAG AG (until April 24, 2023)
→ STEAG GmbH, Chairman (until Decemeber 31, 2023)
→ STEAG Power GmbH, Chairman (since May 15, 2023 until
December 31, 2023)
→ Iqony GmbH, Chairman (since June 14, 2023 until December
31, 2023)
→ Energie Steiermark AG (until March 3, 2023)

Elisabeth Wallbaum
(until May 17, 2023, again since June 5, 2023)
Expert, SE Works Council E.ON SE and E.ON Group Works Council

Deborah Wilkens
Management consultant

Axel Winterwerber
Chairman of the SE Works Council, E.ON SE;
Chairman of the General Works Council, Süwag AG;
Chairman of the Works Council Frankfurt Region,
Member of the SE Works Council E.ON SE
→ E.ON Pensionsfonds AG2
→ Süwag AG2
→ Syna GmbH2

261

E.ON Integrated Annual Report 2023

Other Information

Contents

Back

→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Supervisory Board Committees

Executive Committee
Erich Clementi, Chairman (since May 17, 2023)
Dr. Karl-Ludwig Kley, Chairman (until May 17, 2023)
Ulrich Grillo
René Pöhls (since May 17, 2023)
Christoph Schmitz (until December 31, 2023), Deputy Chairman
Dr. Rolf Martin Schmitz (since May 17, 2023)
Fred Schulz (until May 17, 2023)
Frank Werneke (since January 16, 2024), Deputy Chairman
Axel Winterwerber (since March 14, 2023)

Innovation and Sustainability Committee
Klaus Fröhlich, Chairman
(until May 17, 2023, again since June 5, 2023)
Stefan May, Deputy Chairman
(until May 17, 2023, again since June 5, 2023)
Dr. Karen de Segundo (until May 17, 2023)
Eugen-Gheorghe Luha (until May 17, 2023)
Miroslav Pelouch (until May 17, 2023)
Nadège Petit (since May 17, 2023)
Axel Winterwerber (since May 17, 2023)
Ewald Woste (until May 17, 2023)

Nomination Committee

Audit and Risk Committee
Andreas Schmitz, Chairman
René Pöhls, Deputy Chairman (since May 17, 2023)
Katja Bauer (since May 17, 2023)
Fred Schulz, Deputy Chairman (until May 17, 2023)
Ulrich Grillo (until May 17, 2023)
Anke Groth (since June 5, 2023)
Elisabeth Wallbaum
(until May 17, 2023, again since June 5, 2023)
Deborah Wilkens

Erich Clementi, Chairman (since May 17, 2023),
Deputy Chairman (until May 17, 2023)
Dr. Karl-Ludwig Kley, Chairman (until May 17, 2023)
Ulrich Grillo, Deputy Chairman (since May 17, 2023)
Andreas Schmitz (since May 17, 2023)
Dr. Karen de Segundo (until May 17, 2023)

262

E.ON Integrated Annual Report 2023

Other Information

Contents

Back

→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Management Board (and Information on Other Directorships)

Dr.-Ing. Leonhard Birnbaum
Born in 1967 in Ludwigshafen, Germany
Chief Executive Officer of the Management Board since 2021
Member of the Management Board since 2013
Communication & Policy, Auditing, Strategy, Human Ressources,
Occupational Safety & Environmental Protection, Law &
Compliance and PreussenElektra GmbH
→ Georgsmarienhütte Holding GmbH (Chairman)
→ Nord Stream AG

Dr. Thomas König
Born in 1965 in Finnentrop, Germany
Member of the Management Board since 2018
Energy Networks (including Turkey), Procurement
→ Avacon AG2 (Chairman)
→ envia Mitteldeutsche Energie AG2 (until Decemeber 31, 2023)
→ Westenergie AG2
→ Rheinenergie AG
→ Stadtwerke Essen AG
→ E.ON Česká republika s.r.o.2 (Chairman)
→ EG.D a.s.2 (Chairman)
→ E.ON Hungária Zrt.2 (Chairman)
→ Essener Wirtschaftsförderungsgesellschaft mbH

Patrick Lammers
Born in 1964 in Rotterdam, Netherlands
Member of the Management Board since 2021
Retail and Customer Solutions, Market Excellence, Hydrogen,
Energy Management, Marketing
→ E.ON Energie Deutschland GmbH2 (Chairman)
→ E.ON Energie A.S.2 (Chairman)
→ E.ON Italia S.p.A.2
→ Essent N.V.2 (Chairman)
→ E.ON Romania S.R.L.2 (Chairman)
→ Zuid Nederlandse Theatermaatschappij B.V. (Chairman)

Dr. Victoria Ossadnik
Born in 1968 in Frankfurt am Main, Germany
Member of the Management Board since 2021
Digital Technology, Consulting, Cyber Security, Innovation
→ E.ON Digital Technology GmbH2 (Chairman)
→ Linde plc.1

Dr. Marc Spieker
Born in 1975 in Essen, Germany
Member of the Management Board since 2017
Finance, Investor Relations, Mergers & Acquisitions, Accounting,
Controlling, Risk Management, Tax, S4 Transformation
→ Süwag Energie AG2
→ Westenergie AG2
→ Nord Stream AG

263

E.ON Integrated Annual Report 2023

Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Summary of Financial Highlights1
€ in millions
Sales and earnings
Sales
Adjusted EBITDA2
Adjusted EBIT2
Net income/Net loss
Net income/Net loss attributable to shareholders of E.ON SE
Adjusted net income2
Value measures
ROCE (%)
Asset and capital structure
Non-current assets
Current assets
Total assets
Equity

Capital stock
Minority interests without controlling influence

Non-current liabilities

Provisions
Financial liabilities
Other liabilities and other

Current liabilities
Provisions
Financial liabilities
Other liabilities and other

2019 3

41,284
5,564
3,220
1,792
1,550
1,526

8,3

2020

60,944
6,905
3,776
1,270
1,017
1,638

6,2

2021

77,358
7,889
4,723
5,305
4,691
2,503

7,8

2022

115,660
8,059
5,197
2,242
1,831
2,728

8,8

2023

93,686
9,370
6,387
760
517
3,068

10,7

75,786
22,294
98,080
13,248
2,641
4,149
58,982
20,669
27,572
10,741
25,850
4,019
3,841
17,990
98,080

75,484
19,901
95,385
9,055
2,641
4,130
61,761
21,384
29,423
10,954
24,569
3,904
3,418
17,247
95,385

80,637
39,122
119,759
17,889
2,641
5,836
61,359
19,449
28,131
13,779
40,511
11,782
6,530
22,199
119,759

81,769
52,240
134,009
21,867
2,641
5,944
57,934
14,968
28,965
14,001 ⁴
54,208
5,528
5,186
43,494 ⁴
134,009

83,034
30,472
113,506
19,970
2,641
5,856
55,923
14,013
30,823
11,087
37,613
4,866
4,617
28,130
113,506

Total assets and liabilities
1 Adjusted for discontinued operations.
2 Adjusted for non-operating effects.
3Figures for 2019 were retroactively adjusted for effects from the innogy purchase-price allocation and the recognition of failed-own-use transactions.
4The presentation of the maturities of liabilities from derivative financial instruments was adjusted by €16.7 billion as of December 31, 2022, from non-current to current within the meaning of IAS 8.41 ff. This relates to energy
procurement and sales contracts that are not classified as own-use contracts under IFRS 9 and are accounted for as commodity derivatives.

Summary of Financial Highlights

264

E.ON Integrated Annual Report 2023

Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

2020

2021

2022

2019 3

5,313
4,171
9
40,736

2,965
5,515
14
38,895

Summary of Financial Highlights1
€ in millions
Cash flow, investments, and financial ratios
Cash provided by operating activities of continuing
operations5
Cash-effective investments
Equity ratio (%)
Economic net debt (at year-end)
Cash provided by operating activities of continuing operations
as a percentage of sales
Stock and E.ON SE long-term ratings
Earnings per share attributable to shareholders of E.ON SE (€)
Dividend per share4 (€)
Dividend payout6
Moody’s
Standard & Poor’s
Fitch
Employees
Employees (at year-end)7
1Adjusted for discontinued operations.
2Adjusted for non-operating effects.
3Figures for 2019 were retroactively adjusted for effects from the innogy purchase-price allocation and the recognition of failed-own-use transactions.
4The presentation of the maturities of liabilities from derivative financial instruments was adjusted by €16.7 billion as of December 31, 2022, from non-current to current within the meaning of IAS 8.41 ff. This relates to energy
procurement and sales contracts that are not classified as own-use contracts under IFRS 9 and are accounted for as commodity derivatives.
5Fully includes the Renewables segment from January 1, 2018, to September 18, 2019, and innogy’s business in the Czech Republic from September 18, 2019, to October 30, 2020.
6For the respective financial year; the 2023 figure is management’s proposed dividend.
7Core workforce does not include apprentices, working students, or interns. This figure reports full-time equivalents (“FTE”).

0.70
0,51
1,331
Baa2
BBB
BBB+

0,68
0,46
1,199
Baa2
BBB

1.80
0,49
1,278
Baa2
BBB

0.40
0,47
1,225
Baa2
BBB

10,045
4,753
16
32,742

4,069
4,762
15
38,773

69,378

69,733

74,866

75,659

8,7

5,3

8,7

7,2

2023

5,654
6,421
18
37,691

6.0

0.20
0,53
1,384
Baa2
BBB
BBB+

72,242

265

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Task Force on Climate-related
Financial Disclosures (“TCFD”) 

E.ON aims for its business to become continually more
sustainable. This includes making steady progress toward our
climate targets, effectively managing climate-related risks, seizing
climate-related opportunities that fit with our corporate strategy,
and reporting transparently on all these matters. To ensure that
we do so, we have put in place a highly effective governance
structure.

The TCFD’s recommendations provide important guidance for
reporting. Established in 2015, the TCFD aims to develop
consistent, comparable, and accurate climate-related financial risk
disclosures that companies can use to provide information to
investors, lenders, insurers, and other stakeholders. E.ON became
an official TCFD supporter in 2019, which marks the start of our
TCFD reporting below. Going forward, we will continue to expand
our TCFD reporting. One consequence of TCFD reporting is that
we have developed a qualitative scenario analysis to assess how
our businesses might be affected under different climate
scenarios.

› In addition, the TCFD reporting is supported by additional
information in the publication “On course for net zero—Supporting
paper for E.ON’s decarbonization strategy and climate-related
disclosures.” ‹

Governance

The importance of climate change for E.ON is reflected in our
governance. The Management Board has overall responsibility for
the sustainability strategy, including the climate targets. It is
informed on a quarterly basis by the Chief Sustainability Officer
(“CSO”) about important initiatives and developments as well as
KPIs. The CSO manages and monitors all of the Company’s
sustainability activities and chairs the Sustainability Council. The
council is E.ON’s most important forum for discussing

sustainability issues, establishing a sustainable mindset, and
embedding it in business processes. The Supervisory Board is
regularly informed about material sustainability topics by its Audit
and Risk Committee, by its Innovation and Sustainability
Committee, and by the Management Board. As part of the carbon
management plan introduced in 2022, emission reduction paths
were defined for the business units to implement the Group's
climate targets at the local level. Our units conduct annual controls
to ensure that we are on track to meet our targets.

Strategy

E.ON’s business operations cause carbon emissions. Yet our two
core businesses—Energy Networks and Customer Solutions—also
help millions of customers avoid emissions. They make the energy
system more efficient and increase the proportion of renewables in
the energy mix.

E.ON’s current climate strategy includes emission-reduction
targets for 2030, 2040 and 2050. In 2020 E.ON set new climate
targets and intends to be climate-neutral by 2040 (Scope 1 and 2).

Both climate change and the energy transition aimed at slowing it
could create risks as well as opportunities for E.ON’s business. A
scenario analysis models how the key value drivers of E.ON and
five of our business units might be affected under different
scenarios through 2050. The analysis consisted of three different
climate scenarios: a conservative, ambitious, and fully committed
climate policy. Subject experts analyzed the implications, which
were used to conduct a risk-and-opportunity assessment. It shows
that we have a robust business model and great opportunities for
decarbonization for every scenario. E.ON’s high proportion of
regulated business makes it robust, while massive electrification
and decarbonization offer major opportunities for the Company’s
business model. In view of these important findings, we intend to
review of the scenario analysis on an annual basis. We again began
a qualitative scenario analysis at the end of 2023.

Risk Management

E.ON regularly monitors and assesses its non-financial, climate,
and other sustainability risks and opportunities and their potential
impact in the short, medium, and long term. In 2020 we integrated
climate related risks into our Enterprise Risk Management system.
In 2021 human rights risks in the supply chain, employee matters,
social matters, and anti-corruption were integrated as well. Risk
and sustainability managers at the units were actively involved in
this process. The status of this process is presented to the E.ON
Group Risk Committee on a regular basis. Our analyses of climate
risks encompass physical risks (such as extreme weather and
rising temperatures) as well as transitional risks (such as changes
in consumer preferences, the regulatory environment, and carbon
pricing). The Risks and Chances Report contains additional
information.

Metrics and Targets

E.ON’s current climate metrics consist mainly of the emission
figures for its carbon footprint categories (Scope 1, 2, and 3) and
the measurement of progress toward its climate targets (see
above). The climate targets defined in 2020 remain valid (see
Climate Protection chapter). We monitor progress toward these
targets on an annual basis for all relevant GHG categories. The
aforementioned carbon management plan apportions our
emission-reduction targets to the business units, while giving
them the operational decision-making authority on how to achieve
them.

In addition, E.ON discloses avoided emissions. This applies to the
annual reporting for its green bonds, which includes disclosures on
the metric tons of CO2e avoided by the projects funded. A green
bond is a fixed-interest security whose issuance proceeds are used
to fund infrastructure and energy-efficiency projects that yield
measurable carbon savings. In 2023 E.ON issued three green
bonds totaling €2.5 billion.

266

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

ESG Figures

We assess the effectiveness of our sustainability strategy and initiatives by monitoring key
performance indicators (“KPIs”). Capital markets in particular want standardized ESG KPIs.
Consequently, this report discloses KPIs on our ESG performance over three years.

In addition, since 2010 we have reported our KPIs in accordance with standards of the German
Association for Financial Analysis and Asset Management (German abbreviation: “DVFA”) and the
European Federation of Financial Analysts Societies (“EFFAS”). KPIs that reflect these standards are
indicated by the DVFA/EFFAS ID. KPIs that are particularly important to us are highlighted.

The audit levels of the KPIs that were part of the independent Sustainability Assurance or the audit of
the consolidated financial statements can be found in the Combined Group Management Report as
well as the Annexes to the Combined Group Management Report. The About This Report chapter
explains how the respective KPIs are marked and with which audit level they were audited.

Environment

Climate protection1

Greenhouse gas emissions (total CO₂ equivalents in million
metric tons, location-based)
Greenhouse gas emissions (total CO₂ equivalents in million
metric tons, market-based)

Scope 12, 3
Scope 2 (location-based)4
Scope 2 (market-based)5
Scope 3 (location-based)3, 6, 7
Scope 3 (market-based)

DVFA/EFFAS

2023 2022

2021

E03-01

76.17 86.81

107.99

E03-01
E02-01
E02-01
E02-01
E02-01
E02-01

73.41 91.29
2.01 2.88
3.46 3.38
6.17 5.83
70.69 80.55
65.23 82.58

113.02 8
3.71
3.90
5.73
100.38
103.58

1For reasons of materiality, this figure includes all subsidiaries and generation facilities that are fully consolidated in E.ON's financial
statement. Companies with fewer than ten employees do not have to be included if their activities have no material impact on the various
Scope 1 to Scope 3 categories.
2The external global warming potential ("GWP") sources used are the Department for Business, Energy & Industrial Strategy ("BEIS",
formerly DEFRA), the Naturvårdsverkets, the Greenhouse Gas Protocol, the Överenskommelse Värmemarknadskommittén 2021, and the
IPCC AR5 report.
3Emissions from power and heat generation are divided into emissions from plants owned and operated by E.ON (Scope 1) and emissions
from plants leased to, and operated by, customers (Scope 3). This improves E.ON’s ability to manage its emissions and makes progress
toward its targets more transparent.
4The external global warming potential ("GWP") sources used is the International Energy Agency ("IEA").
5The external global warming potential ("GWP") sources used are the International Energy Agency ("IEA") and the Association of Issuing
Bodies ("AIB").
6The external global warming potential ("GWP") sources used include the International Energy Agency ("IEA"), the IPCC AR5 report,
Department for Business, Energy & Industrial Strategy ("BEIS", formerly DEFRA), the Naturvårdsverkets, the Greenhouse Gas Protocol, and
the Överenskommelse Värmemarknadskommittén 2021. Furthermore, primary data from external travel service providers was used for the
calculation.
7Scope 3 emissions from purchased power and the combustion of natural gas sold to end users (energy sold to our residential and B2B
customers), according to the GHG Scope 3 protocol. The emissions from distribution losses from energy sold to sales partners and the
wholesale market are accounted for under our Scope 1 and Scope 2 emissions accordingly.
8Prior-year figures have been adjusted to reflect the market-based figure for Scope 3 emissions.

The Climate Protection chapter contains more information.

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→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Environmental Management

Energy consumption within the organization (million GJ)
Share of employees working at business units certified to
ISO-14001 (percentages)1
Share of employees working at business
units with ISO 50001 certification (percentages)2
Number of environmental incidents

4 (major)
3 (serious)
2 (moderate)
1 (minor)
0 (low)

DVFA/EFFAS
E01-01

2023
49

2022
53 1

2021
59 1

E33-01

0
0
16
353
506

402
79
323
12.6

0
0
22
287
480

435
84
351
28.9

0
0
21
305
576

519
66
453
52.5

Incidents on the seven-step International Nuclear Event Scale
("INES")
Provisions for environmental remediation and similar
obligations (€ in millions)2

Short term
Long term

Fresh water consumption - PEL (million cubic meters)3
Fresh water withdrawal - water utilities (million cubic
meters)4

E12-05

E28-01

Groundwater
Surface Water / Bank filtrate
Spring Water Sources
1Prior year figures were adjusted.
1Funds set aside for potential redevelopment, water protection, and the remediation of contaminated sites.
2For reasons of materiality, includes PreussenElektra (PEL) only.
3For reasons of materiality, only the withdrawals of the companies Rheinisch-Westfälische Wasserwerksgesellschaft (RWW) and Avacon
Wasser are taken into account here.

83.2
36.6
46.4
0.2

n.a.
n.a.
n.a.
n.a.

The Environmental Management contains more information.

1Areas accounting for less than 1 percent of total withdrawal are not displayed.
2Proportion of E.ON’s total water withdrawal.
3PreussenElektra’s Isar 2 NPP operated until April 15, 2023, due to political decisions made in 2022, after which it ceased power production.
4Based on the current overall water risks (baseline) of the Aqueduct 4.0 Water Risk Atlas from the World Resource Institute (WRI), query
in November 2023.
5Based on the pessimistic scenario for 2030 of the Aqueduct 4.0 Water Risk Atlas from the WRI.

The Environmental Management chapter contains more information.

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Waste

Non-hazardous waste (metric kilotons)

Recovered
Disposed

Hazardous waste (metric kilotons)

Recovered
Disposed

Total waste (metric kilotons)1
Total amount of waste recycled (percentages)2
Low and intermediate-level radioactive
waste (metric tons)
High-level radioactive waste (metric tons)
1Increase compared to 2022 due to expansion of reporting companies.
2Hazardous and non-hazardous waste.
3Percentage of recycled hazardous and non-hazardous waste.

DVFA/EFFAS

E06-01

E04-01
E05-01
E08-01/
E08-02
E08-03

2023
496.1
467.0
29.1
205.4
170.7
34.7
701.5
91.0

2022
381.3
364.1
17.3
162.2
107.5
54.7
543.5
87.0

2021
428.0
410.1
17.9
141.3
106.7
34.5
569.2
90.8

1,374.1 1,105.7 1,420.2
65.0

0.0

The Environmental Management chapter contains more information.

Power generation

Owned generation by energy source (percentages)

DVFA/ EFFAS
E26-01

2023

2022

2021

Natural gas/oil1
Nuclear2
Coal1
Other (includes biomass, wind and solar)

15.0
42.0
1.0
42.0
1Attributable share of electricity from combined heat and power plants for E.ON's district heating networks.
2E.ON´s nuclear generation ended in 2023 due to Germany’s phaseout of nuclear power.

8.0
74.0
0.0
18.0

4.8
87.1
0.1
8.0

The Climate Protection and Sustainable Products and Services chapters contain more information.

Social

Employee Matters

Group employees (FTE)1
New hires2

Full-time equivalent (FTE)
Headcounts
Permanent employment contracts (percentages)
Employees with full-time contracts (percentages)2
Employees with permanent employment contracts
(percentages)2
Employees with collective bargaining agreements
(percentages)2
Employees with part-time contracts2
Average length of service (years)2
Voluntary turnover rate (percentages)2
Apprentices in Germany (headcount)
Apprentice ratio in Germany (percentages)
Female workforce (percentages)2
Female executives (percentages)3
Severely disabled employees in Germany (percentages)2
Severely disabled employees in Germany (headcount)2
Nationalities (number)2
Average age (in years)2
Age distribution (percentages)2

DVFA/EFFAS

2023
72,242

2022
69,378

2021
69,733

10,546
11,308
70
88

8,499
9,128
68
89

7,871
8,590
63
88

82
9,092
13
4,6
2,365
5,6
32
24
4.5
1,775
115
42

83
8,378
13
6.1
2,213
5,6
31
23
5.0
1,782
110
42

S01-01

S10-01
S10-01

S03-01

81
8,814
14
4.5
2,308
5.8
32
21
5,3
1,948
119
42

20
49
31

< 30 years
31–50 years
> 50 years

21
49
30
1Core workforce; includes board members, and managing directors but excludes apprentices, interns, and working students.
2Total workforce; includes board members, managing directors, apprentices, interns and working students.
3Compared to the total number of executives.

22
49
29

The Working Conditions and Employee Development chapter contains more information.

269

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Occupational Health and Safety

DVFA/ EFFAS

Combined TRIF1

Employee TRIF
Contractor TRIF

Employee LTIF2
Contractor LTIF2
Share of employees working at business units certified by ISO
45001 (percentages)3
Employee and contractor fatal accidents
Employee health rate (percentages)4

2023
2.4
2.8
2.0
2.2
1.6

2022
2.6
2.9
2.3
2.1
2.0

83.0

85.0
3
96.3 96.0

2021
2.5
2.6
2.3
2.1
2.0

94.0
4
96.5

Customers

Number of power and gas customers
(millions)
Installed smart energy meters (millions)
Installed smart heat meters (thousands)

DVFA/EFFAS

2023

2022

2021

V11-02

35.9
34.7
13.8 12.2
n.a.
94.4

38.8 1
9.7
n.a.

Customer loyalty development
Reduction of CO₂e emissions at commercial and industrial
customers in Germany (metric tonnes of CO2e)
1Prior-year figures have been adjusted due to the harmonization of npower in the United Kingdom.

V06-01

Visit the Customer Satisfaction
chapter.

375,879 242,402

284,256

1Total recordable injury frequency measures the number of reported fatalities and occupational injuries and illnesses per million hours of
work. It includes injuries that occur during work-related travel that result in lost time or no lost time and/or that lead to medical treatment,
restricted work, or work at a substitute work station.
2Lost-time injury frequency measures work-related accidents resulting in lost time per million hours of work.
3In previous year's coverage rate reported the share of business units with ISO 45001 certification in percentage. Therefore, comparability
with 2021 figures is limited.
4Includes board members, managing directors, and apprentices.

The Occupational Health and Safety contains more information.

Community involvement

DVFA/EFFAS

Corporate giving (€ in millions)
Strategic community involvement (€ in millions)
Total community investments (€ in millions)
Volunteer activities of E.ON employees (number of volunteer
hours)

2023
2022
12.2 16.0
2.3
10.2
22.3 18.3

2021
8.6
3.8
12.3

22,129 13,340

8,506

The Community Involvement chapter contains more information.

The Customer Satisfaction and Sustainable Products and Services chapters contain more information.

Energy networks

Power system length (thousand kilometers)
Gas system length (thousand kilometers)
Power distribution losses (percentage)
1Prior-year figure was adjusted.

DVFA/EFFAS

2023
1,110
147
3.5

2022
1,107
146
3.5 1

2021
1,115
148
3.6

The Energy Networks chapter contains more information.

CAIDI Power1

Interruptions per minute
Germany
Sweden2, 3
Hungary
Czech Republic2
Romania
Poland3
1Totals may deviate due to rounding.
2Including influence of force majeure.
3Increase in 2023 (2022 data) due to several days of extreme weather conditions and storms.

Scheduled
73.8
69.6
285.5
262.2
310.0
51.4

The Security of Supply chapter contains more information.

2023
Un-
scheduled
46.9
102.8
71.6
84.2
78.0
70.2

Total

52.4
93.4
134.4
143.4
183.8
67.7

270

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ EU Taxonomy

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ SASB Index

Governance

Compliance

DVFA/EFFAS

Procurement volume in countries with corruption risks (percentages)1
Number of compliance notices2
Contributions to political parties (percentages)3
1Countries with less than 60 points in Transparency International’s Corruption Perception Index.
2Cases recorded at Corporate Functions that resulted in investigations and were not subsequently found to be false reports.
3The E.ON Code of Conduct forbids donations to political parties, candidates, and incumbents.

2023
17,76
292
0

2022
19,11
137
0

→ GRI Index

→ NFS Index

2021
15,98
160
0

The Compliance and Anticorruption chapter contains more information.

Supplier Management

Supply chain: key performance narrative

DVFA/ EFFAS

2023

2022

2021

V28-04

Visit the Human Rights and Supply
Chain Management chapter

The Human Rights and Supply Chain Management chapter contains more information.

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Annexes to the Management Report

EU Taxonomy 

EU Taxonomy Investments
Financial year 2023

Economic Activities

A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar photovoltaic technology
Electricity generation from wind power
Electricity generation from hydropower
Electricity generation from geothermal energy
Transmission and distribution of electricity
Storage of electricity
Transmission and distribution networks for renewable and low-carbon gases
District heating/cooling distribution
Cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels
Cogeneration of heat/cool and power from bioenergy
Production of heat/cool from geothermal energy
Production of heat/cool from renewable non-fossil gaseous and liquid fuels
Production of heat/cool from bioenergy
Construction, extension and operation of water collection, treatment and supply systems / Water supply
Construction, extension and operation of water collection, treatment and supply systems / Water supply
Infrastructure for personal mobility, cycle logistics
Infrastructure enabling low-carbon road transport and public transport
Installation, maintenance and repair of charging stations for electric vehicles in buildings
Installation, maintenance and repair of instruments and devices for measuring, regulation and contr. energy performance of
buildings
Data processing, hosting and related activities
Data-driven solutions for GHG emissions reductions
Professional services related to energy performance of buildings
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which Enabling
Of which Transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

2023

Significant contribution criteria

DNSH criteria ('Does not significantly harm')

Code1

CapEx
in millions

Proportion of
CapEx, year
2023
%

Climate
change
mitigation2
Y;N;N/EL

Climate
change
adaptation2
Y;N;N/EL

Water2
Y;N;N/EL

Pollution2
Y;N;N/EL

Circular

Economy2 Biodiversity2
Y;N;N/EL
Y;N;N/EL

Climate change
mitigation2
Y;N

Climate change
adaptation2
Y;N

CCM 4.1
CCM 4.3
CCM 4.5
CCM 4.6
CCM 4.9
CCM 4.10
CCM 4.14
CCM 4.15
CCM 4.19
CCM 4.20
CCM 4.22
CCM 4.23
CCM 4.24
CCM 5.1 /
WTR 2.1
CCM 5.1 /
WTR 2.1
CCM 6.13
CCM 6.15
CCM 7.4
CCM 7.5
CCM 8.1
CCM 8.2
CCM 9.3

41
14
4
4
4,548
50
382
59
3
34
1
19
18
43
34
26
7
9
136
8
289
3
5,734
5,067
8

1%
0%
0%
0%
57%
1%
5%
1%
0%
0%
0%
0%
0%
1%
0%
0%
0%
0%
2%
0%
4%
0%
71%
63%
0%

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
71%
63%
0%

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
Y
N
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

Water2
Y;N

Pollution2
Y;N

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

Electricity generation from hydropower
Transmission and distribution networks for renewable and low-carbon gases
District heating/cooling distribution
Installation and operation of electric heat pumps
Cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels
Production of heat/cool from geothermal energy
Production of heat/cool from renewable non-fossil gaseous and liquid fuels
Production of heat/cool from bioenergy
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system
Infrastructure enabling low-carbon road transport and public transport
Installation, maintenance and repair of instruments and devices for measuring, regulation and contr. energy performance of
buildings
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)
A. CapEx of Taxonomy-eligible activities (A.1+A.2)
B. Not taxonomy-eligible activities
CapEx of Taxonomy-non eligible activities
TOTAL
1Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO.
2Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective ; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective.
3Y - Yes; N - No.
4E - Enabling activity; T - Transitional activity.
5EL - Taxonomy eligible activity for the relevant objective; N/EL - taxonomy non-eligible activity for the relevant objective

CCM 4.5
CCM 4.14
CCM 4.15
CCM 4.16
CCM 4.19
CCM 4.22
CCM 4.23
CCM 4.24
CCM 4.30
CCM 4.31
CCM 6.15
CCM 7.5

1
18
6
9
12
7
8
6
27
20
15
1
129
5,863

0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
2%
73%

27%
100%

2,187
8,049

EL;N/EL5
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

EL;N/EL5
EL
EL
EL
EL
EL
EL
EL
EL
EL
EL
EL
EL
2%
73%

EL;N/EL5
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

Proportion of
Taxonomy
aligned (A.1) or
eligible (A.2)
CapEx, year
2022
%

Minimum
safeguards3
Y;N

Category
"enabling
activity"4
E/-

Category
"transitional
activity"4
T/-

Circular

Economy2 Biodiversity2
Y;N

Y;N

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

-
-
-
-
E
E
-
-
-
-
-
-
-
-

E
E
E
E
-
E
E

-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
T
-
-

1%
0%
0%
0%
62%
0%
6%
1%
0%
1%
-
0%
0%
-
1%
0%
0%
0%
2%
-
6%
0%
80%
70%
0%

0%
2%
0%
-
-
0%
0%
-
0%
-
-
0%
2%
82%

272

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ Boards
→ SDG Index

→ SASB Index

Significant contribution criteria

DNSH criteria ('Does not significantly harm')

2023

Code1

OpEx
in millions

Proportion of
OpEx, year
2023
%

Climate change
mitigation2
Y;N;N/EL

Climate change
adaptation2
Y;N;N/EL

Water2
Y;N;N/EL

Pollution2
Y;N;N/EL

Circular

Economy2 Biodiversity2
Y;N;N/EL
Y;N;N/EL

Climate change
mitigation2
Y;N

Climate change
adaptation2
Y;N

Proportion of
Taxonomy
aligned (A.1) or
eligible (A.2)
OpEx, year
2022
%

Minimum
safeguards3
Y;N

Category
"enabling
activity"4
E/-

Category
"transitional
activity"4
T/-

Circular

Economy2 Biodiversity2
Y;N

Y;N

EU Taxonomy Operating Expenses
Financial year 2023

Economic Activities

CCM 4.1
CCM 4.3
CCM 4.5
CCM 4.8
CCM 4.9
CCM 4.14
CCM 4.15
CCM 4.20
CCM 4.24
CCM 5.1 /
WTR 2.1
CCM 6.13
CCM 7.5
CCM 7.6

1
7
1
2
754
28
3
5
7
5
9
2
30
855
797
-

0%
1%
0%
0%
59%
2%
0%
0%
1%
0%
1%
0%
2%
67%
63%
0%

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
67%
63%
0%

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
Y
N/EL
N/EL
N/EL
0%
0%

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

Water2
Y;N

Pollution2
Y;N

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

-
-
-
-
E
-
-
-
-
-
E
E
E

-
-
-
-
-
-
-
-
-
-
-
-
-

-
0%
0%
-
63%
2%
0%
0%
1%
-
1%
0%
4%
71%
68%
0%

0%
0%
0%
1%
-
0%
1%
2%
73%

Transmission and distribution networks for renewable and low-carbon gases
District heating/cooling distribution
Installation and operation of electric heat pumps
Production of heat/cool from renewable non-fossil gaseous and liquid fuels
Production of heat/cool from bioenergy
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)
A. OpEx of Taxonomy-eligible activities (A.1+A.2)
B. Not taxonomy-eligible activities
OpEx of Taxonomy-non eligible activities
TOTAL
1Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO.
2Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective ; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective.
3Y - Yes; N - No.
4E - Enabling activity; T - Transitional activity.
5EL - Taxonomy eligible activity for the relevant objective; N/EL - taxonomy non-eligible activity for the relevant objective.

CCM 4.14
CCM 4.15
CCM 4.16
CCM 4.23
CCM 4.24
CCM 4.30
CCM 4.31

0%
0%
0%
0%
0%
1%
0%
2%
69%

1
3
2
2
5
7
6
26
881

31%
100%

393
1,274

EL;N/EL5
EL
EL
EL
EL
EL
EL
EL
2%
69%

EL;N/EL5
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

273

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Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ Boards
→ SDG Index

→ SASB Index

Significant contribution criteria

DNSH criteria ('Does not significantly harm')

EU Taxonomy Revenues
Financial year 2023

Economic Activities

A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar photovoltaic technology
Electricity generation from hydropower
Transmission and distribution of electricity
District heating/cooling distribution
Cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels
Cogeneration of heat/cool and power from bioenergy
Production of heat/cool from solar thermal heating
Production of heat/cool from bioenergy
Renewal of water collection, treatment and supply systems / Water supply
Construction, extension and operation of waste water collection and treatment / Urban waste water treatment
Infrastructure for personal mobility, cycle logistics
Infrastructure enabling low-carbon road transport and public transport
Installation, maintenance and repair of charging stations for electric vehicles in buildings
Installation, maintenance and repair of instruments and devices for measuring, regulation and contr. energy performance of
buildings
Installation, maintenance and repair of renewable energy technologies
Data-driven solutions for GHG emissions reductions
Professional services related to energy performance of buildings
Revenues of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which Enabling
Of which Transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

2023

Code1

Revenues
in millions

CCM 4.1
CCM 4.5
CCM 4.9
CCM 4.15
CCM 4.19
CCM 4.20
CCM 4.21
CCM 4.24
CCM 5.2 /
WTR 2.1
CCM 5.3 /
WTR 2.2
CCM 6.13
CCM 6.15
CCM 7.4
CCM 7.5
CCM 7.6
CCM 8.2
CCM 9.3

4
1
16,214
67
44
46
4
45
15
24
64
37
11
470
368
148
93
17,655
17,406
-

Proportion of
Revenues, year
2023
%

Climate change
mitigation2
Y;N;N/EL

Climate change
adaptation2
Y;N;N/EL

0%
0%
17%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
1%
0%
0%
0%
19%
19%
0%

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
19%
18%
0%

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

Water2
Y;N;N/EL

Pollution2
Y;N;N/EL

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N
Y
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

Circular

Economy2 Biodiversity2
Y;N;N/EL
Y;N;N/EL

Climate change
mitigation2
Y;N

Climate change
adaptation2
Y;N

N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

Water2
Y;N

Pollution2
Y;N

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

Electricity generation using solar photovoltaic technology
Electricity generation from hydropower
Electricity generation from renewable non-fossil gaseous and liquid fuels
Transmission and distribution of electricity
Transmission and distribution networks for renewable and low-carbon gases
Installation and operation of electric heat pumps
Cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system
Infrastructure for personal mobility, cycle logistics
Revenues of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)
A. Revenues of Taxonomy-eligible activities (A.1+A.2)
B. Not taxonomy-eligible activities
Revenues of Taxonomy-non eligible activities
TOTAL
1Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO.
2Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective ; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective.
3Y - Yes; N - No.
4E - Enabling activity; T - Transitional activity.
5EL - Taxonomy eligible activity for the relevant objective; N/EL - taxonomy non-eligible activity for the relevant objective.

CCM 4.1
CCM 4.5
CCM 4.7
CCM 4.9
CCM 4.14
CCM 4.16
CCM 4.19
CCM 4.30
CCM 4.31
CCM 6.13

46
13
1
188
112
36
6
31
40
1
473
18,128

0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
1%
19%

75,558
93,686

81%
100%

EL;N/EL5
EL
EL
EL
EL
EL
EL
EL
EL
EL
EL
1%
19%

EL;N/EL5
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
0%

Proportion of
Taxonomy
aligned (A.1) or
eligible (A.2)
revenues, year
2022
%

Minimum
safeguards3
Y;N

Category
"enabling
activity"4
E/-

Category
"transitional
activity"4
T/-

Circular

Economy2 Biodiversity2
Y;N

Y;N

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

-
-
E
-
-
-
-
-
-
-
E
E
E
E
E
E
E

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

0%
0%
13%
0%
0%
0%
-
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
13%
13%
0%

-
0%
-
0%
0%
0%
-
0%
0%
-
0%
13%

274

E.ON Integrated Annual Report 2023

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Aligned per objective

Proportion of CapEx/Total CapEx
Eligible per objective

Aligned per objective

Proportion of OpEx/Total OpEx
Eligible per objective

Aligned per objective

Proportion of revenue/Total revenue
Eligible per objective

71%
0%
1%
0%
0%
0%

73%
0%
1%
0%
0%
0%

67%
0%
0%
0%
0%
0%

69%
0%
0%
0%
0%
0%

19%
0%
0%
0%
0%
0%

2023

CCM1
CCA2
WTR3
CE4
PPC5
BIO6
1Climate Change Mitigation: CCM.
2Climate Change Adaptation: CCA.
3Water: WTR.
4Circular Economy: CE.
5Pollution Prevention and Control: PPC.
6Biodiversity and ecosystems: BIO.

275

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

CapEx Template 1: Nuclear and fossil gas related activities

Row
1

Row
4
5
6

Nuclear energy related activities
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste
from the fuel cycle.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes
such as hydrogen production, as well as their safety upgrades, using best available technologies.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as
hydrogen production from nuclear energy, as well as their safety upgrades.
Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.

Yes1

No
Yes
Yes

1E.ON's nuclear generation ended in April 2023 due to Germany’s phaseout of nuclear power.

CapEx Template 2: Taxonomy-aligned economic activities (denominator)

Row
1

7
8

Economic activities
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
Total applicable KPI

Amount and proportion (in monetary amounts and as percentages)
Climate change
Climate change
adaptation (CCA)
mitigation (CCM)
in %

in % € in millions

CCM + CCA

€ in millions

-
5,734
8,049

-
71
-

-
5,734
8,049

-
71
-

-
-
-

276

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Other Information

Contents

Back

→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

CapEx Template 3: Taxonomy-aligned economic activities (numerator)

Row
1

7
8

Economic activities
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI
Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI

Amount and proportion (in monetary amounts and as percentages)
Climate change
Climate change
adaptation (CCA)
mitigation (CCM)
in %

in % € in millions

CCM + CCA

€ in millions

-
5,734
5,734

-
100
100

-
5,734
5,734

-
100
100

-
-
-

277

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

CapEx Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities

Row
1

Economic activities
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator
of the applicable KPI
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI

Amount and proportion (in monetary amounts and as percentages)
Climate change
Climate change
adaptation (CCA)
mitigation (CCM)
in %

in % € in millions

CCM + CCA

€ in millions

82
129

64
100

82
129

64
100

-
-

CapEx Template 5: Taxonomy non-eligible economic activities

Row
1

7
8

Economic activities
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI

€ in millions

in %

-
2,187
2,187

-
100
100

278

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

OpEx Template 1: Nuclear and fossil gas related activities

Row
1

Row
4
5
6
1E.ON's nuclear generation ended in April 2023 due to Germany’s phaseout of nuclear power.

Yes1

No
Yes
Yes

OpEx Template 2: Taxonomy-aligned economic activities (denominator)

Row
1

7
8

Amount and proportion (in monetary amounts and as percentages)
Climate change
Climate change
adaptation (CCA)
mitigation (CCM)
in %

in % € in millions

CCM + CCA

€ in millions

-
855
1,274

-
67
-

-
855
1,274

-
67
-

-
-
-

279

E.ON Integrated Annual Report 2023

Other Information

Contents

Back

→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

OpEx Template 3: Taxonomy-aligned economic activities (numerator)

Row
1

7
8

Amount and proportion (in monetary amounts and as percentages)
Climate change
Climate change
adaptation (CCA)
mitigation (CCM)
in %

in % € in millions

CCM + CCA

€ in millions

-
855
855

-
100
100

-
855
855

-
100
100

-
-
-

280

E.ON Integrated Annual Report 2023

Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

OpEx Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities

Row
1

Amount and proportion (in monetary amounts and as percentages)
Climate change
Climate change
adaptation (CCA)
mitigation (CCM)
in %

in % € in millions

CCM + CCA

€ in millions

13
26

50
100

13
26

50
100

-
-

OpEx Template 5: Taxonomy non-eligible economic activities

Row
1

7
8

€ in millions

in %

-
393
393

-
100
100

281

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Revenue Template 1: Nuclear and fossil gas related activities

Row
1

Row
4
5
6

Yes1

No
Yes
Yes

1E.ON's nuclear generation ended in April 2023 due to Germany’s phaseout of nuclear power.

Revenue Template 2: Taxonomy-aligned economic activities (denominator)

Row
1

7
8

Amount and proportion (in monetary amounts and as percentages)
Climate change
Climate change
adaptation (CCA)
mitigation (CCM)
in %

in % € in millions

CCM + CCA

€ in millions

-
17,655
93,686

-
19
-

-
17,655
93,686

-
19
-

-
-
-

282

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Other Information

Contents

Back

→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Revenue Template 3: Taxonomy-aligned economic activities (numerator)

Row
1

7
8

Amount and proportion (in monetary amounts and as percentages)
Climate change
Climate change
adaptation (CCA)
mitigation (CCM)
in %

in % € in millions

CCM + CCA

€ in millions

-
17,655
17,655

-
100
100

-
17,655
17,655

-
100
100

-
-
-

283

E.ON Integrated Annual Report 2023

Other Information

Contents

Back

→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Revenue Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities

Row
1

Amount and proportion (in monetary amounts and as percentages)
Climate change
Climate change
adaptation (CCA)
mitigation (CCM)
in %

in % € in millions

CCM + CCA

€ in millions

402
473

85
100

402
473

85
100

-
-

Revenue Template 5: Taxonomy non-eligible economic activities

Row
1

7
8

€ in millions

in %

-
75,558
75,558

-
100
100

284

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Global Reporting Initiative (“GRI”) Index 

E.ON has based its sustainability reporting on the Global Reporting Initiative (“GRI”) guidelines since 2005.

E.ON SE has reported the information cited in this GRI content index for the period 01-01-2023—12-31-2023 with reference to the GRI
Standards. GRI 1: Fundamentals 2021 was used.

GRI Disclosure

GRI 2: General Disclosures (2021)

The organization and its reporting practices

2-1: Organizational details

References and Comments

→ Business Model

2-2: Entities included in the organization’s sustainability reporting

→ About This Report

2-3: Reporting period, frequency and contact point

2-4: Restatements of information

2-5: External assurance

Activities and workers

2-6: Activities, value chain and other business relationships

2-7: Employees

Governance

2-9: Governance structure and composition

2-19: Remuneration policies

2-20: Process to determine remuneration

Strategy, policies, and practices

→ About This Report

→ Financial Calendar and Imprint

→ About This Report

→ About This Report
→ Business Model
→ Sustainable Products and Services
→ Security of Supply
→ Human Rights and Supply Chain Management

→ Working Conditions and Employee Development

→ ESG Figures

→ Strategy
→ Risks and Chances Report
→ Corporate Governance Declaration

→ Compensation Report

2-22: Statement on sustainable development strategy

→ Strategy

285

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

GRI Disclosure

2-23: Policy commitments

References and Comments

→ Compliance and Anticorruption

→ Human Rights and Supply Chain Management

2-24: Embedding policy commitments

2-25: Processes to remediate negative impacts

The “E.ON’s Approach” section in each ESG chapter of this report provides
information on the sustainability strategies and policies relevant to the
chapter’s topic. The Sustainability Channel on our corporate website contains
a number of relevant employee and functional policies as well as our Code of
Conduct.

[> E.ON’s Sustainability Policies]

→ Compliance and Anticorruption

→ Human Rights and Supply Chain Management

→ Compliance and Anticorruption

→ Human Rights and Supply Chain Management

2-26: Mechanisms for seeking advice and raising concerns

→ Compliance and Anticorruption

→ Human Rights and Supply Chain Management

2-28: Memberships of associations

→ ESG Materiality and Stakeholder Engagement

Stakeholder Engagement

2-29: Approach to stakeholder engagement

→ ESG Materiality and Stakeholder Engagement

2-30: Collective bargaining agreements

→ Working Conditions and Employee Development

→ ESG Figures

GRI 3: Material Topics (2021)

Disclosures on material topics

3-1: Process to determine material topics

→ ESG Materiality and Stakeholder Engagement

3-2: List of material topics

→ ESG Materiality and Stakeholder Engagement

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Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

GRI Disclosure

3-3: Management of material topics

References and Comments

→ Climate Protection

→ Environmental Management
→ Occupational Health and Safety
→ Working Conditions and Employee Development
→ Customer Satisfaction
→ Security of Supply
→ Sustainable Products and Services
→ Community Involvement
→ Data Protection, Cybersecurity and Product Safety
→ Business Resilience Management
→ Compliance and Anticorruption
→ Energy Affordability
→ Diversity and Inclusion
→ Human Rights and Supply Chain Management
→Tax

As with the topics identified as material, reporting on the other topics listed is
based on the requirements of GRI 3-3.

GRI 200: Economic
GRI 205: Anti-corruption (2016)

205-2: Communication and training about anti-corruption policies and
procedures

→ Compliance and Anticorruption

→ Human Rights and Supply Chain Management

GRI 300: Environmental

GRI 302: Energy (2016)

302-1: Energy consumption within the organization

→ Environmental Management

→ Sustainable Products and Services

Our disclosures include the following parameters:
• Fuel consumed for energy generation (fossil, nuclear, and renewable fuel)

for Company purposes

• Power and district heat consumption
• Fuel combustion for heating
• Vehicle fuel consumption
• Power distribution losses (resold power and gas are excluded)

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

GRI Disclosure
GRI 305: Emissions (2016)

References and Comments

305-1: Direct (Scope 1) GHG emissions

→ Climate Protection

Our disclosures are based on CO₂ equivalents, which measure greenhouse
gases in accordance with the Greenhouse Gas Protocol Community
Accounting and Reporting Standard (“GHG Protocol”).

In line with the Kyoto Protocol, the baseline year is 1990. Global warming
potential is relative to a 100-year time horizon.

Our GHG emissions disclosures encompass all subsidiaries and generation
assets that are fully consolidated in E.ON’s financial statements. Subsidiaries
with fewer than ten employees do not need to be included if their activities do
not have a material impact on the various Scope 1–3 categories.

305-2: Energy indirect (Scope 2) GHG emissions

→ Climate Protection

305-3: Other indirect (Scope 3) GHG emissions

→ Climate Protection

Our disclosures are based on CO₂ equivalents, which include CH4, N₂O, and
CO₂ emissions.

For baseline year and consolidation approach, see 305-1.

We do not record emissions from the combustion or biodegradation of
biomass that occur in our upstream value chain.

Our disclosures are based on CO₂ equivalents, which include CH4, N₂O, and
CO₂ emissions.

For baseline year and consolidation approach, see 305-1.

GRI 400: Social

GRI 401: Employment (2016)

401-1: New employee hires and employee turnover

→ Working Conditions and Employee Development

→ ESG Figures

Our disclosures on new employee hires and employee turnover include
numbers for the entire Group. More detailed disclosures are not relevant.

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Other Information

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

GRI Disclosure

GRI 403: Occupational health and safety (2018)

References and Comments

403-1: Occupational health and safety management system

→ Occupational Health and Safety

Our occupational health and safety management system was not
implemented to comply with legal requirements. It is part of our commitment
as a responsible Company and is based entirely on ISO standards.

403-2: Hazard identification, risk assessment, and incident investigation

→ Occupational Health and Safety

403-3: Occupational health services

403-4: Worker participation, consultation, and communication on
occupational health and safety

→ Occupational Health and Safety

403-5: Worker training on occupational health and safety

→ Occupational Health and Safety

403-6: Promotion of worker health

403-7: Prevention and mitigation of occupational health and safety impacts
directly linked by business relationships

→ Occupational Health and Safety

403-8: Workers covered by an occupational health and safety management
system

→ Occupational Health and Safety

403-9: Work-related injuries

→ Occupational Health and Safety

E.ON uses the following KPIs to monitor and report accidents:
• Serious incident and fatality frequency (“SIF”): accidents and incidents that
cause serious or fatal injuries.
• Total recordable injury frequency (“TRIF”): work-related accidents and
illnesses.
• Lost-time injury frequency (“LTIF”): work-related accidents that result in
lost time.
• Near-miss frequency rate (“NMFR”): unplanned events that had the
potential to result in an accident but did not.

All indicators are reported for both E.ON employees and contractors’
employees.

A breakdown by gender is not applicable as we believe this would not provide
useful information. Instead of breaking TRIF down by country, we do so by
segment.

403-10: Work-related ill health

→ Occupational Health and Safety

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Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

GRI Disclosure

GRI 404: Training and education (2016)

References and Comments

404-2: Programs for upgrading employee skills and transition assistance
programmes

→ Working Conditions and Employee Development

GRI 405: Diversity and equal opportunity (2016)

405-1: Diversity of governance bodies and employees

→ Working Conditions and Employee Development

→ Diversity and Inclusion
→ ESG Figures

GRI 412: Human rights assessment (2016)

412-2: Employee training on human rights policies or procedures

→ Human Rights and Supply Chain Management

Our disclosures include the total number of procurement personnel who
attended live online training sessions as well as the percentage of employees
that used our Group-wide self-paced eLearning module on human rights and
data and cyber security.

GRI 418: Customer privacy (2016)

418-1: Substantiated complaints concerning breaches of customer privacy
and losses of customer data

→ Data Protection, Cybersecurity, and Product Safety

Due to confidentiality constraints and the sensitivity of such data, we are
unable to provide information about substantiated complaints concerning
data breaches.

GRI G4 Sector disclosures electric utilities: access (2013)

G4-EU28: Power outage frequency (SAIFI)

→ Security of Supply

G4-EU29: Average power outage duration (SAIDI)

→ Security of Supply

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Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Non-Financial Statement (“NFS”) Index 

The NFS Index shows where in the Integrated Annual Report 2023 the required content of the German CSR Directive Implementation
Act (Section 315b, 315c in conjunction with Sections 289b to 289e of the German Commercial Code (German abbreviation: “HGB”)) are
disclosed.

In addition, E.ON reports in line with reporting requirements of Regulation 2020/852 of the European Parliament and of the Council (“EU
Taxonomy”) in the chapter entitled EU Taxonomy as well as in the EU Taxonomy section in the chapter Other Information.

Aspects Subject to Reporting Requirements

Integrated Annual Report 2023

Business model

Risks

Environmental matters

Employee matters

Social matters

Human rights

→ Business Model

→ Risks and Chances Report

→ Climate Protection

→ Sustainable Products and Services*

→ Occupational Health and Safety*

→ Working Conditions and Employee Development*
→ Diversity and Inclusion*

→ Security of Supply

→ Energy Affordability
→ Customer Satisfaction*
→ Data Protection, Cybersecurity, and Product Safety*
→ Business Resilience Management*

→ Human Rights and Supply Chain Management*

Combating corruption and bribery

→ Compliance and Anticorruption*

*Topics identified as not material in E.ON’s 2023 materiality analysis but reported due to their relevance for various stakeholders and for environmental, social, and governance (“ESG”)
rankings and ratings.

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Other Information

Contents

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→ Declaration of the Management Board

→ Independent Auditor’s Report

→ Independent Assurance Practitioner's Report

→ Boards

→ Summary of Financial Highlights

→ TCFD

→ ESG Figures

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SDG Index

→ SASB Index

→ Financial Calendar and Imprint

Sustainable Development Goals (“SDG”)-Index

The following index presents the reported sustainability activities of E.ON in the context of the United
Nations Sustainable Development Goals (“SDGs”).

→ Working Conditions and Employee Development

→ Energy Affordability

→ Compliance and Anticorruption

→ Diversity and Inclusion

→ ESG Materiality and Stakeholder Engagement

→ EU Taxonomy

→ Community Involvement

→ Occupational Health and Safety

→ Climate Protection

→ Human Rights and Supply Chain Management

→ Sustainable Products and Services

→ Environmental Management

→ Security of Supply

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Other Information

Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Sustainable Accounting Standards Board (“SASB”) Index

Accounting Metric

Greenhouse Gas Emissions &
Energy Resource Planning

Category

Code

Response

(1) Gross global Scope 1 emissions, percentage covered
under (2) emissions-limiting regulations, and (3) emissions-
reporting regulations

Quantitative

IF-EU-110a.1

Scope 1: 2.01 million metric tons of CO2e.
E.ON discloses its Scope 1, 2, and 3 GHG emissions.
Our disclosures are based on CO₂ equivalents, which include GHG in correspondence with the GHG Protocol.

Greenhouse gas (“GHG”) emissions associated with power
deliveries

Quantitative

IF-EU-110a.2

In line with the Kyoto Protocol, the baseline year is 1990. GWP is relative to a 100-year time horizon.

Our GHG emissions disclosures encompass all subsidiaries and generation assets that are fully consolidated in E.ON’s financial
statements. Subsidiaries with less than ten employees are not included if their activities do not have a material impact on the
different Scope 1–3 categories.

The percentage of Scope 1 GHG emissions covered under emissions-limiting regulation or emissions reporting-based
regulations (EU-ETS allowances and the Swedish Carbon Tax) is approximately 56 percent.

→ Climate Protection

Purchased power sold to end-customers (location-based)1: 35.95 million metric tons of CO2e2
Purchased power sold to end-customers (market-based)1: 30.48 million metric tons of CO2e2
Power distribution losses (location-based)3: 3.19 million metric tons of CO2e
Power distribution losses (market-based)4: 5.85 million metric tons of CO2e5

→ Climate Protection

1Scope 3 emissions from purchased power and the combustion of natural gas sold to end users (energy sold to our residential and B2B customers), according to the GHG Scope 3 protocol. The emissions from distribution losses from energy sold to sales partners and the wholesale market
are accounted for under our Scope 1 and Scope 2 emissions accordingly.
2Includes purchased power at EV charging points owned by E.ON and accessible by the public.
3Based on the emission factors of the national electricity mixes for specific geographic regions (source: IEA).
4Based on the emission factors of the national residual mixes for specific geographic regions. A country’s residual mix emission factor represents the emissions and generation that remain after certificates, contracts, and supplier-specific factors have been claimed and removed from the
calculation (source: EPA).
5Power distribution losses in Sweden were completely offset by the purchase of green electricity.

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Accounting Metric

Category

Code

Response

Discussion of long-term and short-term strategy or plan to
manage Scope 1 emissions, emissions reduction targets,
and an analysis of performance against those targets

Discussion and Analysis

IF-EU-110a.3

A discussion and/or analysis of the following topics can be found in the linked sources below:
• our long- and short-term strategy to manage our emissions
• our emissions reduction targets
• our performance against our reduction targets
• our strategy to manage risks and opportunities associated with GHG emissions
• our activities and investments required to achieve targets and related risks
• the scope of our strategies, plans, and targets
• our reduction strategies that are not related to any emissions limiting and/or emissions reporting-based program

→ Climate Protection
→ Sustainable Products and Services
→ ESG Figures

(1) Number of customers served in markets subject to
renewable portfolio standards (RPS) and (2) percentage
fulfillment of RPS target by market

Air Quality

Air emissions of the following pollutants:
(1) NOX (excluding N₂O), (2) SOX, (3) particulate matter
(PM10), (4) lead (Pb), and (5) mercury (Hg); percentage of
each in or near areas of dense population

6For generation assets over 20 MW.

Quantitative

IF-EU-110a.4

Data are not available.

→ On course for net-zero—Supporting paper for E.ON’s decarbonization strategy and climate-related disclosures

RPS mechanisms are commonly used in the United States. As E.ON operates in European countries, where the standards
are not widely adopted, it is not applicable for E.ON. E.ON supplies more than 50 percent of its customers with green electricity
products.

Quantitative

IF-EU-120a.1

NOX emissions: 2,501 metric tons6
SO₂ emissions: 828 metric tons6
Dust emissions: 53 metric tons6

Fossil-fueled power plants emit nitric oxide (“NOX”), sulfur dioxide (“SO₂”), and dust. This type of power generation is no longer a
core E.ON business. We therefore no longer consider it a key indicator. We now focus on small-scale, embedded generation
units. Our NOX, SO₂, and dust emissions are mostly attributable to small-scale gas-fired combined-heat-and-power (CHP) plants
and larger district heat networks.

Data on lead (Pb), mercury (Hg), and the percentage of each indicator in or near areas of dense population are not available as
they are not relevant for E.ON.

→ Environmental Management

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Accounting Metric

Water Management

Category

Code

Response

(1) Total water withdrawn, (2) total water consumed,
percentage of each in regions with High or Extremely High
Baseline Water Stress

Quantitative

IF-EU-140a.1

E.ON’s water consumption from decentralized energy generation (Core business): <1 million cubic meters
Fresh water withdrawal (PreussenElektra): 203.1 million cubic meters
Fresh water consumption (PreussenElektra): 12.6 million cubic meters

Number of incidents of non-compliance associated with
water quantity and/or quality permits, standards, and
regulations

Description of water management risks and discussion of
strategies and practices to mitigate those risks

E.ON operates in European countries where the overall water risk is low to intermediate which leads at present to 0 percent for
water withdrawal in regions with high or extremely high baseline water stress. See Water Risk Map in the chapter ESG Figures.

With the end of electricity production at the Isar 2 NPP in April 2023, E.ON no longer uses cooling water to operate its plants.

Quantitative

IF-EU-140a.2

Number of environmental incidents of non-compliance associated with water: Two.

→ Environmental Management
→ ESG Figures

Quantitative

IF-EU-140a.3

Both incidents occurred in the United Kingdom. The severity of both incidents was low.

E.ON’s water-related activities involve the withdrawal of cooling water for the NPP operated by PreussenElektra (until the
decommissioning of Isar 2 on April 15, 2023), the withdrawal of fresh water by E.ON’s water supply subsidiaries (such as RWW
and Avacon Wasser), and smaller amounts relating to our distributed energy business. In addition, LEW operates a number of
small and medium-sized run-of-river power plants in Germany with an installed capacity of 0.5 to 12 MW per plant.

Based on available data, E.ON estimates the current and the possibility of future water scarcity in the relevant regions where
E.ON uses freshwater for its operations to be low to medium.

Descriptions of strategies and actions to minimize residual risks can be found under the following chapters:

→ Environmental Management
→ ESG Figures

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Accounting Metric

Coal Ash Management

Category

Code

Response

Amount of coal combustion residuals (“CCR”) generated,
percentage recycled

Quantitative

IF-EU-150a.1

Not applicable.

Total number of coal combustion residual (“CCR”)
impoundments, broken down by hazard potential
classification and structural integrity assessment

Energy Affordability

Average retail electric rate for (1) residential,
(2) commercial, and (3) industrial customers

Typical monthly electric bill for residential customers for (1)
500 kWh and (2) 1,000 kWh of electricity delivered per
month

Number of residential customer electric disconnections for
non-payment, percentage reconnected within 30 days

Quantitative

IF-EU-150a.2

Not applicable.

Quantitative

IF-EU-240a.1

Data are not available.

Quantitative

IF-EU-240a.2

Data are not available.

Quantitative

IF-EU-240a.3

In 2023 around 23,900 electricity customers and 2,400 gas customers were disconnected. These figures refer only to
customers of E.ON Energie Deutschland GmbH. Data from other entities are not available at the time of publication.

Data on the number of customers reconnected within 30 days are not available. Of roughly 26,3000 total disconnections, about
14,600, or 55.6 percent, were carried out regardless of time in 2023.

Discussion of impact of external factors on customer
affordability of electricity, including the economic
conditions of the service territory

Discussion and
Analysis

IF-EU-240a.4

Information is not available.

→ Energy Affordability

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Contents

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Workforce Health and Safety

(1) Total recordable incident rate (“TRIR”),
(2) fatality rate, and (3) near miss frequency rate (“NMFR”)

Quantitative

IF-EU-320a.1

E.ON uses the following key performance indicators to monitor and report incidents:
Total recordable injury frequency (employee “TRIF”): 2.77 per million hours of work7
Serious incident and fatality rate (employee “SIF”): 0.03 per million hours of work8
Lost-time injury frequency (employee “LTIF”): 2.17 per million hours of work9
Near miss frequency rate (“NMFR”): 40.32 per million hours of work10
Fatal accidents: 1

TRIF, SIF, LTIF, and fatal accidents are reported for both E.ON employees and contractors’ employees, the latter are disclosed in
the chapter Occupational Health and Safety. NMFR is only reported for E.ON employees. Data on the total recordable incident
rate ("TRIR") are not available.

→ Occupational Health and Safety
→ ESG Figures

End-Use Efficiency and Demand

Percentage of electric utility revenues from rate structures
that (1) are decoupled and
(2) contain a lost revenue adjustment mechanism (LRAM)

Quantitative

IF-EU-420a.1

Data are not available.

Percentage of electric load served by smart grid technology

Quantitative

IF-EU-420a.2

Data are not available as E.ON’s control system does not differentiate between conventional and smart grids.

Customer electricity savings from efficiency measures, by
market

Nuclear Safety & Emergency Management

Total number of nuclear power units, broken down by U.S.
Nuclear Regulatory Commission (NRC) Action Matrix
Column

Quantitative

IF-EU-420a.3

Data on customer electricity savings from efficiency measures are not available.

Green power sales: 67,832,212 MWh

Our distribution grids are getting progressively smarter, which enables them to integrate more renewable energy and
manage increasingly complicated energy flows in real time while remaining reliable.

Quantitative

IF-EU-540a.1

PreussenElektra is responsible for eight nuclear power plants (NPPs) in Germany. Isar 2 was the last NPP to end power
operation on April 15, 2023. Since then, all eight NPPs have been decommissioned and are in various stages of dismantling.

Description of efforts to manage nuclear safety and
emergency preparedness

Discussion and
Analysis

IF-EU-540a.2

PreussenElektra is fully integrated into our safety organization and embraces our high standards. Its extensive experience in
plant operations and decommissioning helps it to further optimize its health and safety processes and procedures.

A breakdown of our nuclear power units by U.S. Nuclear Regulatory Commission Action Matrix is not applicable.

7TRIF measures the number of reported fatalities and occupational injuries and illnesses per million hours of work. It includes injuries that occur during work-related travel that result in lost time or no lost time and/or that lead to medical treatment, restricted work, or work at a substitute
workstation.
8Serious incidents and fatalities measures accidents and incidents that have caused serious or fatal injuries and that surpass a predefined severity threshold per million hours of work.
9Lost time injury frequency measures work-related accidents resulting in lost time per million hours of work.
10Near-miss frequency rate measures unplanned incidents that had the potential to result in an accident (but did not) per million hours of work.

→ Occupational Health and Safety
→ Business Resilience Management

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→ Declaration of the Management Board
→ Summary of Financial Highlights
→ Financial Calendar and Imprint

→ Independent Auditor’s Report
→ ESG Figures

→ TCFD

→ Independent Assurance Practitioner's Report

→ Boards
→ SDG Index

→ EU Taxonomy

→ GRI Index

→ NFS Index

→ SASB Index

Accounting Metric

Grid Resiliency

Number of incidents of non-compliance with physical
and/or cybersecurity standards or regulations

(1) System Average Interruption Duration Index (SAIDI),
(2) System Average Interruption Frequency Index (SAIFI),
and (3) Customer Average Interruption Duration Index
(CAIDI), inclusive of major event days

Category

Code

Response

Quantitative

IF-EU-550a.1

Data are not available.

Quantitative

IF-EU-550a.2

The System Average Interruption Duration Index (SAIDI) and the System Average Interruption Frequency Index (SAIFI) can be
found in the chapter Security of Supply.

The Customer Average Interruption Duration Index (CAIDI) can be found in the chapter ESG Figures.

→ Security of Supply
→ ESG Figures

Number of: (1) residential, (2) commercial, and (3) industrial
customers served mechanism (LRAM)

Quantitative

IF-EU-000.A

Number of power and gas customers in Europe: 34.7 million
A more detailed breakdown of our customer groups cannot be provided.

Total electricity delivered to: (1) residential,
(2) commercial, (3) industrial, (4) all other retail customers,
and (5) wholesale customers

Quantitative

IF-EU-000.B

Length of transmission and distribution lines

Quantitative

IF-EU-000.C

Total electricity generated, percentage by major energy
source, percentage in regulated markets

Quantitative

IF-EU-000.D

→ ESG Figures

→ Sustainable Products and Services

Total length of power networks: 1,110 thousand kilometers
Total length of gas networks: 147 thousand kilometers

→ ESG Figures

Owned generation by energy source in percentages
Natural gas/oil11: 15.0
Nuclear12: 42.0
Coal11: 1.0
Other (includes biomass, wind, and solar): 42.0

→ ESG Figures

Total wholesale electricity purchased

Quantitative

IF-EU-000.E

Data are not available.

11Attributable share of electricity from combined heat and power plants for E.ON's district heating networks.
12E.ON's nuclear generation ended in 2023 due to Germany’s phaseout of nuclear power.

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May 15, 2024

May 16, 2024

Quarterly Statement: January – March 2024

2024 Annual Shareholders Meeting

August 14, 2024

Half-Year Financial Report: January – June 2024

November 14, 2024

Quarterly Statement: January – September 2024

Financial Calendar and Imprint

E.ON SE
Brüsseler Platz 1
45131 Essen
Germany

T +49 201-184-00
info@eon.com
www.eon.com

Journalists
T +49 201-184-4236
eon.com/en/about-us/media.html

Analysts, shareholders and bond investors
T +49 201-184-2806
investorrelations@eon.com

This Integrated Annual Report was published on March 13, 2024.

Only the German version of this Integrated Annual Report is legally binding.

This Integrated Annual Report contains certain forward-looking statements based on E.ON management’s current
assumptions and forecasts and other currently available information. Various known and unknown risks, uncertainties,
and other factors could lead to material differences between E.ON’s actual future results, financial situation,
development, or performance and the estimates given here. E.ON assumes no liability whatsoever to update these
forward-looking statements or to confirm them to future events or developments.

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