E.ON Annual Report 2020

1 Annual Group at a Glance in millions20202019+/- %Sales1 60,94441,284+48 Adjusted EBITDA1, 26,9055,564+24 Regulated business (%)7365+83 Quasi-regulated and long-term contracted business (%)413-93 Merchant business (%)2322+13 Adjusted EBIT1, 23,7763,220+17 Regulated business (%)7970+93 Quasi-regulated and long-term contracted business (%)311-83 Merchant business (%)1819-13 Net income/loss1,2701,792-29 Net income/loss attributable to shareholders of SE1,0171,550-34 Adjusted net income1, 21,6381,526+7 Investments14,1715,492-24 Cash provided by operating activities15,3132,965+79 Cash provided by operating activities before interest and taxes15,9484,407+35 Economic net debt (at year-end)140,73638,895+5 Equity9,05513,248-32 Total assets95,38598,080-3 ROCE (%) (at year-end)

2 178,12678,948-1 Percentage of female employees3233-13 Average age4242 Earnings per share4, 5 ( ) net income per share1, 4, 5 ( ) per share6 ( ) +2 Dividend payout1,2251,199+21 Includes until September 18, 2019, the discontinued operations in the Renewables segment (see Note 5 to the Consolidated Financial Statements).2 Adjusted for non-operating in percentage to shareholders of on shares outstanding (weighted average).6 For the respective financial year; the 2020 figure represents management s dividend proposal.

3 Merger squeeze-out of innogy s remaining minority shareholders concluded European Commission s conditions for innogy takeover completely fulfilled Transfer of innogy bonds to concluded Adjusted EBIT and adjusted net income within forecast range revised in August 2020 2021 adjusted EBIT expected to be between and billion, 2021 adjusted net income between and billion Proposed dividend of per share for the 2020 financial year Annual growth of dividend per share of up to 5 percent through the dividend for the 2023 financial year targeted Ambitious climate targets decided climate-neutral by 2050 Contents 4 Report of the Supervisory Board 12 strategy and Objectives 18 Combined Group Management Report 20 Corporate Profile 20 Business Model 20 Special Events in the Reporting Period 24

4 Management System 25 Innovation 28 Business Report 28 Macroeconomic and Industry Environment 31 Business Performance 32 Earnings Situation 37 Financial Situation 41 Asset Situation 42 Business Segments 48 SE s Earnings, Financial, and Asset Situation 49 Other Financial and Non-financial Performance Indicators 49 ROCE 50 Employees 54 Forecast Report 57 risks and Chances Report 65 Internal Control System for the Accounting Process 67 Disclosures Regarding Takeovers 70 Corporate Governance Declaration 80 Compensation Report 98 Separate Combined Non-Financial Report 116 Consolidated Financial Statements 118 SE and Subsidiaries Consolidated Statements of Income 119 SE and Subsidiaries Consolidated Statements of

5 Recognized Income and Expenses 120 SE and Subsidiaries Balance Sheets Assets 121 SE and Subsidiaries Balance Sheets Equity and Liabilities 122 SE and Subsidiaries Consolidated Statements of Cash Flows 124 Statement of Changes in Equity 126 Notes 126 (1) Summary of Significant Accounting Policies 140 (2) New Standards and Interpretations 141 (3) Impact of the Covid-19 Pandemic 142 (4) Scope of Consolidation 142 (5) Acquisitions, Disposals and Discontinued OperationsReport of the Supervisory BoardStrategy and Objectives Combined Group Management Report Combined Non-Financial Report Consolidated Financial Statements Other Information 149 (6) Revenues 149 (7) Own Work Capitalized 149 (8) Other Operating Income and Expenses 151 (9) Cost of Materials 151 (10) Financial Results 152 (11) Income Taxes 155 (12) Personnel-Related Information 158 (13) Other Information 159 (14) Earnings per Share 159 (15)

6 Goodwill, Intangible Assets, Right-of-use Assets and Property, Plant and Equipment 168 (16) Companies Accounted for under the Equity Method and Other Financial Assets 171 (17) Inventories 171 (18) Receivables and Other Assets 172 (19) Liquid Funds 172 (20) Capital Stock 174 (21) Additional Paid-in Capital 174 (22) Retained Earnings 175 (23) Changes in Other Comprehensive Income 175 (24) Non-controlling Interests 177 (25) Provisions for Pensions and Similar Obligations 184 (26) Miscellaneous Provisions 187 (27) Liabilities 192 (28) Contingent Liabilities and Other Financial Obligations 193 (29) Litigation and Claims 194 (30) Supplemental Cash Flow Disclosures 194 (31) Derivative Financial Instruments and Hedging Transactions 198 (32) Additional Disclosures on Financial Instruments 208 (33) Leasing 210 (34) Transactions with Related Parties 211 (35) Segment Reporting 216 (36) Compensation of Supervisory Board and Management Board 217 (37) Subsequent Events 218 (38)

7 List of Shareholdings Pursuant to Section 313 (2) HGB 236 Other Information 238 Declaration of the Management Board 239 Independent Auditor s Report 246 Independent Practitioner s Report on Non-financial Reporting 248 Boards 248 Supervisory Board (and Information on Other Directorships) 250 Management Board (and Information on Other Directorships) 251 Summary of Financial Highlights 253 Financial CalendarReport of the Supervisory Board6 Report of the Supervisory BoardDear Shareholders, For , 2020 was characterized by two events: the integration of innogy SE and the Covid-19 pandemic.

8 The squeeze-out of the remaining innogy minority share-holders was completed in June. As a result of this, the legal integration of innogy was concluded as well. In addition, the antitrust requirements for the divestment of parts of the Company were successfully completed. The Covid-19 pandemic presented the company with major challenges-both in the market and in terms of internal processes and procedures, which were successfully overcome. The Super-visory Board would like to thank the Management Board and all employees for all the special efforts that were and are connected with these the 2020 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.

9 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 four regular meetings and one extraordinary meeting, it addressed all issues relevant to the Company. In addition, it carried out one written resolution procedure. On a regular basis, the shareholder representatives and the employee representa-tives made separate preparations for these meetings with the participation of one or all members of the Management Board.

10 Three Supervisory Board members were unable to attend individual Supervisory Board meetings in 2020. Apart from that, all members attended all 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 com-mittees, the Supervisory Board had sufficient opportunity to actively discuss the Management Board s reports, motions, and proposed resolutions.