- Investments to increase by €9 billion
- Management to propose increased dividend of €4.10
- Adjusted EBIT up 10 percent
"We need to do an even better job convincing people that a company like E.ON - precisely because of its international presence, size, technological potential, and financial strength - is the right partner for them, a partner they can trust and rely on," E.ON CEO Wulf H. Bernotat said at the company’s annual press conference in Düsseldorf. E.ON therefore intends to deepen its dialog with the public, Bernotat said "This is the only way we’ll be able to convince people that Europe needs to design balanced strategies for a sustainable energy supply."
Huge investments will be needed to implement these strategies and make Europe’s energy supply even more environmentally friendly, secure, and reliable. E.ON is therefore increasing its planned investments for 2007-2010 by €9 billion. In the period 2008-2010 alone, the company now plans to invest roughly €50 billion. €38 billion of this figure is earmarked for power generation and supply. E.ON is currently planning to build 17 new coal-fired and gas-fired power plants in Europe and Russia, five of which are in Germany. Renewables also represent a key investment focus. E.ON plans to double its planned renewables investments to €6 billion for the period 2007-2010. "Our investments in state-of-the-art power plants, renewables, energy infrastructure, and gas procurement will help secure Europe’s energy future. E.ON is a pacesetter in our industry."
Adjusted EBIT increased to €9.2 billion
E.ON had another very successful financial year in 2007. E.ON grew sales by 7 percent, from €64.1 billion to €68.7 billion. The positive development of the E.ON Group’s operating earnings also continued in 2007. Adjusted EBIT climbed by 10 percent to €9.2 billion (prior year: €8.4 billion). E.ON thus again significantly surpassed the high prior-year level. Adjusted net income of €5.1 billion was 9 percent above the prior-year figure (€4.7 billion).
Return on capital employed (ROCE) and cash flow significantly higher
In 2007, E.ON again increased its ROCE and value added. ROCE of 14.5 percent was substantially above the company’s cost of capital. Value added increased to €3.4 billion. Cash provided by operating activities also again surpassed the prior-year figure (€7.2 billion), rising by 22 percent to €8.7 billion
Management to propose €4.10 per share dividend
Thanks to the solid development of its operating earnings, E.ON can raise its per share dividend for the ninth time in a row. At E.ON’s Annual Shareholders Meeting on April 30, 2008, the Board of Management and Supervisory Board will propose to pay a €4.10 dividend per ordinary share qualifying for a dividend, an increase of 22 percent from the prior-year dividend (€3.35). At the Annual Shareholders Meeting, management will also propose a three-for-one stock split and that E.ON’s shares be changed from bearer shares to registered shares.
Further operating improvements expected for 2008
For 2008, E.ON expects its adjusted EBIT to surpass the high prior-year figure by 5 to 10 percent. The company anticipates a slight year-on-year increase in adjusted net income for 2008.