E.ON Strategic Co-Investments Adding value to Start-ups and E.ON Group Konrad Augustin Head of SCI US July 2015
An Overview of E.ON At facilities across Europe, Russia, and North America, our more than 58,000 employees generated approx. 112 bn in sales in 2014. In addition, there are businesses in Brazil and Turkey we manage jointly with partners. With our strategy cleaner & better energy we're transforming E.ON into a global provider of specialized energy solutions which will benefit our employees, customers, and investors alike. We operate in 15 countries and service 35 m customers. Our total Generating Capacity as of end 2014 was 59 GW Total Renewable Generating Capacity is 10.5 GW, out of which 2.1 GW are located in Germany 2
E.ON to split into two publicly listed companies E.ON to spin off a majority stake in its power & gas up- and midstream business (Uniper) to its shareholders Empowering customers Shaping markets Internal spin-off expected to be completed in 2016 Two highly competitive companies with distinct identities 3
Content 1 How E.ON sees the Future Energy World and innovation strategy 2 Technology & Innovation within E.ON 3 Strategic Co-Investments Deep Dive 4
T&I constantly screens mega- and subtrends as starting point for decision on future innovation area RISE OF THE INDIVIDUAL Individuality NEW SOCIETY & ECONOMY Diffusion of power Health & well-being + Urbanization New work New social structure Consumption shift Megatrends Knowledge society ACCELERATED TECHNOLOGY SUSTAINABILITY Disruptive technology & innovation Ubiquitous intelligence & computing Climate Resources & energy 5
Megatrends drive changes within the energy world Centralistic Energy System Centralized power production Centralized gas supply Equal serving of all customer Pricing, reliability of supply and environmental standards driven by government Significant economies of scale regarding efficiency leading to large scale assets + International inter-branch Innovation Individual Solutions Global technologies with local adaptions (glocalization) Distributed generation (PV) Distributed / mobile IT Distributed flexibility (batteries) Combined with services Individual sales channels 6
Content 1 How E.ON sees the Future Energy World and innovation strategy 2 Technology & Innovation within E.ON 3 Strategic Co-Investments Deep Dive 7
Technology & Innovation @ E.ON organized as a network E.ON Innovation Center E.ON Innovation Center Technology & Innovation E.ON Innovation Center E.ON Innovation Center T&I EIC Technology & Innovation within GM Technology & Innovation Strategy Innovation Portfolio Management Innovation Scouting & Co-Investments E.ON Innovation Centers Steering and initiating T&I projects Tracking technology development Setting the strategic agenda for their area Drive technology to business implementation E.ON Innovation Center PEU Project Executing Units Execute all projects and programs of the group wide E.ON Innovation centers 8
Content 1 How E.ON sees the Future Energy World and innovation strategy 2 What can you expect from Technology & Innovation within E.ON 3 Strategic Co-Investments Deep Dive 9
Where we co-invest in Our focus is on business models and technologies that shape the future energy world Residential and C&I solutions Renewables BOS Smart Grid IT & Intelligence Distributed energy
Strategic co-investments Combining start-up innovation with E.ON resources to shape E.ON future Capital 35 m customers 15 countries 5 GW renewables Expertise = WHY Screen outside innovation Bring external innovations into E.ON Info and capital to de-risks commercial deals Benefit from upside provided by E.ON WHAT Equity investments linked to - E.ON s demonstration / validation - E.ON s commercial roll-out WHERE Residential and C&I solutions Renewables balance of systems Distributed energy and storage Smart grid (regulated and unregulated) IT (Big data, cyber security, comms, etc) HOW E.ON T&I set-up brings value beyond capital - SCI & EIC close collaboration - EIC imbedded in business 11
Example for a collaboration: Sungevity Equity investment in early 2014 Sungevity s proprietary software helps to significantly reduce Customer Acquisition Cost and remote modeling of PV Systems Initial pilot projects in the Netherlands in 2014 Pilot in Germany now Further project in a major E.ON market coming in 2015 12
What we co-invested in so far - Portfolio (per May 2015) Customers Renewables Smart Distributed Fund-in-Fund
Thank you Konrad Augustin July 2015