Uniper strategy highlights Andreas Schierenbeck, CEO Uniper

Fortum Capital Market Day, December 3, 2020

Uniper at a glance

Our business

100 years

€863mn

~34 GW

Power Generation

Commodity Trading

Experience

Adj. EBIT1

Generation capacity1

Energy Storage

~200 TWh

~2000 TWh

~400TWh

Energy Sales

Energy Services

Energy Sales

Trading

LTC

Gas power plants

Hydro plants

Nuclear plants

Coal power plants

Energy sales to small and large customers

Gas storage

Regasification

bookings

Trading

Gas infrastructure

Engineering

Services

1As of December 31, 2019

2

Uniper's evolutionary steps

Tightening the ship

Setting the sails

New Strategy

2015 - 2017

2018 - 2019

2020

TSR

+200%

CO2 reduction

>36%

Cash optimized

Operations improved

Portfolio streamlined

Growth in security of supply initiated

Rating secured

Legacy projects put on home stretch

Transparency increased

Track record of delivery established

CO2

  • Carbon-neutralin Europe by 2035
  • World's 8th most valuable brand (utilities) according to BrandFinance
  • Classified best employer amongst German utilities
  • Best employee feedback ever
  • TRIF ~ 50% lower than 2016

3

Driving decarbonization actively

European Generation

Global Commodities

Russian Power

22.2

2

mt CO

With our

measures

0

2019

2025

2030

2035

Carbon neutral by 2035

Actively reduce carbon

emissions

4

Sustainability ambitions further increased

European Generation

Global Commodities

Russian Power

March 20

Carbon neutral by

Actively reduce carbon emissions

2035 at the latest

>50% emission

Scope 3 targets to be

Focus on RES

reduction* by 2030

developed in 2021

capacity scheme

Today

Implementation of TCFD framework

Commitment to become carbon neutral by 2050

*compared to 2019, including Scope 2

5

Strategy: Clear transition agenda

Coal

generation

EBIT

2019

Decarbonize

  • Exit path for hard coal and lignite fleet with aim to offer new business and employment prospects
  • Improve carbon footprint of remaining fleet
  • Materialize commercial value with brownfield site conversions

Gas generation &

gas midstream

EBIT

2019

Expand & decarbonize

  • Expand Customer Solutions business with industrial customers TSOs
  • Materialize merchant upside of existing high efficient gas-firedpower generation
  • Decarbonisation of gas flows as long- term goal with upside for existing generation and gas midstream

Carbon-free generation

EBIT

2019

Expand

  • Expand carbon-free position by either
    direct exposure to the renewable value chain or act as enabler of renewable projects
  • Key focus on sustainable portfolio transformation

Active de-risking

Leverage current portfolio

Explore new options

6

Strategy: Clear transition agenda

Coal

generation

EBIT

2019

Decarbonize

  • Exit path for hard coal and lignite fleet with aim to offer new business and employment prospects
  • Improve carbon footprint of remaining fleet
  • Materialize commercial value with brownfield site conversions

Active de-risking

7

European Generation CO2-neutral by 2035

CO2 emissions of European Generation (net)

generation

50

in mt

44

45

40

35

30

Exit of >5 GW of fossil capacity -50% in Benelux, GER and France

Coal

25

22

Main driver: Coal-exit

20

-50%

15

11

10

5

CO2-neutral

0

2016

2019

2030

2035

Uniper start

8

Uniper coal exit plans per country

National coal exit plans

Coal generation

UK:

2025

Netherlands:

2029

Germany:

2038

*end of commercial operations; technical end of operations subject to TSO decision

Uniper's coal fleet in Europe - Exit path

MW

8000

Heyden*

► 875 MW

Schkopau

► 900 MW

6000

Scholven

► 760 MW

Wilhelmshaven

► 757 MW

4000

Staudinger 5

► 510 MW

Ratcliffe

► 2,000 MW

2000

Maasvlakte 3

► 1,070 MW

0

Datteln 4

► 1,050 MW

2020E

2025E

2030E

2035E

2040E

9

Transforming liabilities into opportunities

Coal generation

Site conversion to gas-fired plants

Site conversion to industrial hubs

New solutions e.g. Hydrogen and Renewables

Ratcliffe (2GW)

Protect and maximize land value - pursue options wider regional development context

Scholven (0.8GW)

Maximize land value and aim for additional industrial customers supplied from CHP, develop disentanglement program incl. demolition

Staudinger (0.5GW)

Expand heat business and develop site for new services, e.g. data center hub.

Maasvlakte (1.1GW)

Secure existing customers, generate ICS opportunities, secure future of site and increase flexibility

Wilhelmshaven/Huntorf (0.8GW) Attract new customers to sites and consider in light of new technologies (hydrogen), also in context of newproposed LNG terminal project nearby

Heyden (0.9GW)

Maximize land value and consider potential grid services beyond coal

10

Strategy: Clear transition agenda

Gas generation &

gas midstream

EBIT

2019

Expand & decarbonize

  • Expand Customer Solutions business with industrial customers TSOs
  • Materialize merchant upside of existing high efficient gas-firedpower generation
  • Decarbonisation of gas flows as long- term goal with upside for existing generation and gas midstream

Leverage current portfolio

11

Uniper's gas business at a glance

Gas generation

Gas midstream

Gas infrastructure

investments &

~9 GW

gas storage

Sales business

Gas fleet,

contracts

~200 TWh

with TSOs

55bcm/a

(up to10%*)

Industrial

Customer

Power-2-gas

Solutions,

Power-2-X

CHP

4.2 MW of operating

electrolysis

16 bcm/a (20%)

Cavern Storage GER/UK 4.3 bcm

BBL

36.5 bcm/a

(20%)

Nord

Stream II

OPAL

Porous Rock Storage

GER/AT 3.4 bcm

Gas generation & gas midstream

Gas

Gas LTCs

storage

~8 bcm

~400 TWh

Regasification

LNG supply

4.7 bcm p.a.

~35 TWh p.a.

Transitgas

18 bcm/a

(3%)

Excluding Russia

*financial commitment

12

Security of supply, customer centricity & decarbonization of our own fleet

Gas generation & gas midstream

Solutions for TSO customers

Solutions for industrial

Decarbonization

customers

(Making Net Zero Possible)

Killingholme & Grain: four 6-year

Scholven: Converting from coal to

contracts to deliver innovative grid

gas, providing other energies (e.g.

stability services

heat and pressure) to customers in

Irsching 6: Building new gas power

the region

plant

13

Decarbonization requires sector coupling

Gas generation & gas midstream

European

Green Deal:

Net-zero greenhouse gas emissions

by 2050

Energy sector has lowered emissions by 35%

163.3

209.7

159.9

153.0

165.6

167.9

162.3

166.5

153.9

283.8

148.5

130.0

123.4

191.6

116.6

125.1

188.5

188.2

197.7

194.9

176.2

466.4

397.4

369.4

343.4

322.5

305.1

300.7

1990

2005

2010

2016

2017*

2018*

2020

Mio t CO2 e

Energy sector

Industry

Buildings

Transportation

Electrification and hydrogen needed

*Source: Calculations of the Öko-Institut, Fraunhofer and IREES.

14

*Data for 2017 and 2018 from current inventory data (UBA 2020).

Gas generation & gas midstream

Hydrogen imports will be needed

H2

German green

German Hydrogen

hydrogen production

demand

planned to be at

is projected at around

14 TWh

90-100 TWh

Gap 2030 ≥ 76 TWh

15

Technology openness is key

Renewables

Power-to-Gas

Green Hydrogen H2

Direct Use

Elektrolyse

Wind

H2O

midstream

Biogas

Power

H2

O2

Sun

100%

CO2

gas

SNG

Methanation

&

generation

Gas Splitting / Reformation + CC(U)S

Gas Splitting

Turquoise hydrogen (H2)

Gas

CH4

Direct Use

Power

Natural gas

C

Reformation + CC(U)S

H2

Blue Hydrogen (H2)

Direct Use

CO2

CH4

H2O

Sector Coupling

Blended into

Industry

natural gas

Natural gas grid:

Mobility

Storage/transportation

Heat

Blended into

natural gas

Electricity

H2O (water), H2 (hydrogen), CO2 (carbon dioxide), SNG (Synthetic Natural Gas), CH4 (methane), C (solid carbon), CC(U)S (Carbon Capture (Utilisation) and Storage)

16

Uniper's infrastructure and trading skills ideal to meet (import) demand for the switch to hydrogen

Gas generation & gas midstream

Sales business ~200 TWh

Industrial

Customer

Solutions,

CHP

Gas storage ~8 bcm

Regasification 4.7 bcm p.a.

Gas fleet, contracts with TSOs

Power-2-gas

Power-2-X

4.2 MW of operating electrolysis

Gas LTCs

~400 TWh

LNG supply ~35 TWh p.a.

  • Global Origination team well positioned to commercialize hydrogen activities
  • Infrastructure can deal with an increasing amount of hydrogen today
  • Already substantial experience in operating hydrogen facilities in MW class
  • Current projects envisage multi-MWelectrolyser and blue hydrogen assets and storing hydrogen in underground cavern storage

17

Gas generation & gas midstream

Our hydrogen project pipeline

Humber H2 H2

Wilhelmshaven

H2 H2 Connah's Quay

Humber

Epe

North Wales

Hamburg

Wilhelmshaven

Ilse of Grain

Rotterdam

Falkenhagen

Epe

Saxony-Anhalt

Scholven

H2 Grain

H2

H2 Maasvlakte

Bierwang

Existing plant

H2 Green hydrogen

H2 Blue hydrogen

Cavern storage

Planned project

Porous rock storage

Power plant

Power-to-Gas-to-Fuels

H2 chemical industry H2

Power-to-Gas Hamburg

H2 for mobility H2

Power-to-Gas Falkenhagen

Store&Go methanation

H2

Bad LauchstädtH2

Scholven

Bierwang

18

First-of-a-kind large scale commercial size project - largest hydrogen electrolysis unit installed in the Chemical sector1

Gas generation & gas midstream

Renewable

Biogas

CO2 & Circular

energy

streams

+

Waste

HH

water

Electrolysis

Methanol

22

treatment

25 MWel

O2

Syngas

Perstorp

plant

O2

Perstorp

H2

Supply: 3500 tonnes/annum

"One Team Approach"

GHG reduction2: 500 ktCO2/annum

Production of renewable methanol using renewable hydrogen, biogas, CO2 and residue streams. First large-scale plant in the world that uses recycled wastewater to produce hydrogen.

1It is probably the world's largest plant. We are investigating it.

19

2GHG reduction for entire project, including CCU and residue streams

Strategy: Clear transition agenda

Carbon-free generation

EBIT

2019

Expand

Expand carbon-free position by either direct exposure to the renewable value chain or act as enabler of renewable projects

Key focus on sustainable portfolio transformation

Explore new options

20

Grow CO2-free power generation

Maintain & optimize

Enter & expand

Continue to expand

generation

Nordic hydro and physical trading optimization. Cooperation with Fortum creates value and benefits for both companies, O&M savings: "One Team Approach"

Kickstart a large-scale sun and wind power generation portfolio, capturing the potential on owned sites. Cooperating with Fortum brings additional expertise and resources benefiting both companies: "One Team Approach"

Subsidy-free market in Europe offers growth opportunities in PPAs

Carbon-free

1.4 GW

≥1-3 GW

3.6 GW

in the midterm

Contractual

Assets

Greener focus

5 TWh p.a.

by 2023

21

Uniper is developing a renewables portfolio

Carbon-free generation

Space

Permitting

Grid connection

Green hydrogen + Trading

On and aroundexisting assets

Embedded in local communities

Grid headroom on powerplants

3 GW

1 GW

short-term

medium-term

<2025

>2025

22

Deutsche Bahn and Uniper assessing decarbonization options in addition to today's CO2-free hydro power supply

Carbon-free generation

From coal…

…to renewables…

Opencast lignite

Re-naturalisation

mine closed in 1988

and re-purposing

• Assessing the installation of a

20-40 MW floating photovoltaic

system

…and more

Enabler of sector coupling

  • Testing potential for hydrogen reconversion in several existing locations
  • Exchange on strategic orientation in the field of e-mobility.

23

Empowering Energy Evolution: Wilhelmshaven potential

From coal…

…to Gas…

Shutdown of coal

Security of supply

site by 2022

LNG/H2 terminal planned

Nearby gas storage in Etzel

Gas connection

• Already existing gas network nearby

• Existing hydrogen pipeline to Scholven

…to Hydrogen

Enabler of sector coupling

  • Technology partnerships for H2 - like the Salzgitter/Rhenus cooperation for the direct reduction of iron ore.
  • Arrange H2 infrastructure to supply the Wilhelmshaven/Huntorf region in cooperation with regional partners (e.g. EWE).
  • Enable long term H2 import opportunities via deep seaport connection.

24

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Uniper SE published this content on 04 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 December 2020 09:02:02 UTC