Uniper : Presentation Full Year Results 2020

Empower Energy Evolution

FY 2020 Results and Outlook

Andreas Schierenbeck - CEO

Sascha Bibert - CFO

4 March 2021

Highlights

FY 2020 Results and Outlook

Appendix

Highlights

Performance

•  Despite Covid-19, earnings at upper end of guidance range

•  Adjusted EBIT 2020 up 16% to €998m

•  Adjusted Net Income up 26% to €774m

•  Confirmation of €501m (€1.37 per share) dividend proposal for FY 2020

•  Solid outlook for FY 2021 assuming normal operating environment; promising start in first months

Portfolio & strategy

•  New strategy with focus on decarbonization announced in March 2020

•  Ambitious carbon reduction targets further specified during the year

•  Performance and transparency on ESG improved and further measures announced during 2020

•  Changes in the organization to effectively drive business development in the hydrogen and renewable energy sector

•  Numerous initiatives with key players in the area of decarbonization

•  Joint value pools with Fortum identified

Commodity prices in a strong upswing

1. Gas forwards 2022. 2. EU Allowances (EUA): spot prices. 3. Electricity baseload forwards 2022. 4. Dark and spark spreads Germany with electricity base load and spark spread Germany with electricity peak load (efficiency coal plants 39%, gas plants 55%).

Source: Uniper Market Analysis; prices shown until 26th February 2021.

Operating indicators - Normalized gas storage filling levels, lower generation volumes

• 1. Physical filling levels as of 31st December 2019 and 2020.

• 2. Pro-rata view.

• 3. Direct carbon emissions fuel combustion.

ESG - Increasing transparency on ambitions & performance

ESG high on the radar in 2021 & beyond

ESG indicators as part of management

compensation

Exit from European lignite-fired power

generationImplementation of EU-TaxonomyImplementation of TCFDDefinition of Scope-3 targetsMeasures to reduce Scope-1 emissions

1. Target to maintain a Group-wide carbon intensity threshold of 500g of CO2 per kWh (on average) through 2020.

Carbon intensity 2020: 468g of CO2 per kWh.

The way ahead to implement our strategic goals

Hydrogen Hydrogen

Hydrogen Hydrogen

Plan - Perstorp project Ambition - 100 MW

AIR electrolyser in

(sustain. methanol) Rotterdam

Ambition -JV to service city Commercialize on of Hamburg (200 MW existing gas assets electrolyser, sustain. heat) towards hydro-

Renewables

Hydrogen

Preparing entry into Plan to commence

Russia's wind power market

Bad Lauchstädt 30 MW projectRenewables Min. 1 GW solar and onshore wind in Europe

Hydrogen

Renewables

genification

Broadening along the value chain

Min. 3 GW solar and onshore wind in Europe

2020

2021

2022

2023

2024

2025

2026

. . .

2030

1. With the exception of Datteln 4 hard coal plant.

Highlights

FY 2020 Results and Outlook

Appendix

Key financials FY 2020 - At the upper end of guidance

Adjusted EBIT

€m

863

998

FY 2019

FY 2020

€m

Adjusted EBITDA

ted E 1,56

1,657

FY 2019

1,657

FY 2020

• 1. Net income attributable to Uniper shareholders.

• 2. Dividend proposal for the AGM 2021 on May 19, 2021.

• 3. Dividend per share (€).

OCF

€m

1,241

-322 932

Dividend2 €m

501 1.37 3

FY 2019

H1 2019

FY 2020

H1 2020

FY 2020

Adjusted EBIT - Increase driven by gas midstream business

Reconciliation Adj. EBIT FY 2019 to FY 2020

€m

Adj. EBIT FY 2019

Commodity gas & International/Other

Commodity power optimization

Outright power prices & volumes

UK capacity market payments

European fossil fleet optimization

Russian power generation

Other

Adj. EBIT FY 2020

863

998

Adj. EBIT(DA) to OCF - Strong cash conversion

Reconciliation Adj. EBIT FY 2020 to Operating Cash Flow FY 2020

€m

363 658

-26

-436

-91

-195

-30

Adj. EBIT FY 2020

Depreciation and amortizationAdj. EBITDA

FY 2020

Non-cash effective EBITDA items

Provision utilizationChanges in working capitalOthers (incl. cumulative CO2-effect)

OCFbIT FY 2020

Interest paymentsTax paymentsOCF FY 2020

Adjusted Net Income - Economic interest & taxes as expected

Reconciliation of Adj. EBIT FY 2020 to Adj. Net Income FY 2020

Key developments

€m

•  Economic interest result supported by:

  39

  • − Sizeable interest income from assets

  • − Low financial debt

  • − Lower expenses from accretion of interest on long-term provisions (asset retirement obligations) going forward

•  Tax rate on operating earnings of 22% in

  FY 2020 within the guided range of 20% to 25%

•  Minority interests driven by Unipro

Adj. EBIT FY 2020

Economic interestTaxes on operating earnings

Minority interestsAdj. Net Income

FY 2020

Economic Net Debt (END) - Cash-based net financial position improved; END up due to interest rates

Reconciliation of Economic Net Debt YE 2019 to YE 2020

€m

AROs1

• 1. Includes nuclear and other asset retirement obligations (AROs) as well as receivables from Swedish Nuclear Waste Fund (KAF).

• 2. Decrease in interest rates for pension obligations by 0.7%-points in Germany and 0.6%-points in UK since end of 2019.

• 3. Includes cash & cash equivalents, non-current securities and financial liabilities.

Pension2

Net financial position3

Uniper's finance strategy - Three essential pillars

Solid investment grade ratingSignificant growth investments

Attractive dividend2

€m

1,000 600

501

750 450

421

329

500 300

250 150

0 0

FY 2018

FY 2019

FY 2020

 Continuing track record as attractive dividend payer

 Implied pay-out ratio of 65% of ANI for FY 2020 underlines strong earnings foundation

• 1. Cash investments excl. acquisitions

• 2. Payments subject to AGM approval

Uniper's target ratingS&P's

FFO / Net Debt

 S&P FFO/Net Debt >55% is key to ensure solid investment grade rating (BBB)

 As FFO is increasingly benefitting from interest income, the S&P threshold translates into a higher debt factor

Adj. EBITDA/Net Debt ≤ 2.5x

Capex plan1

€m

FY 2020

FY 2021E FY 2022E FY 2023E

 Uniper's strategy is based on decarbonization & portfolio transition  Within years 2021 to 2023 ~€1.2bn earmarked for maintenance & replacement investments

~1.5bn€ to be spent for growth

Dividend 2020 up by 19% YoY

Outlook FY 2021 - Assumption of normal environment

FY 2021 - Main earnings drivers

Reconciliation Adj. EBIT FY 2020 to FY 2021

€m

Adj. EBIT FY 2020

Outright power prices & volumes

European fossil

Commodity gas and International/Other

Russian power generation

Other

Adj. EBIT FY 2021

998

700 - 950

Highlights

FY 2020 Results and Outlook

Appendix

Economic Net Debt is almost free of borrowed money

Interest rate sensitivities

•  Asset retirement obligations (c.p.)1

  0.8

   Current interest rates: from 0% to 1.2%  Rough sensitivity:

  +/-50 BP = +/- ~€250m

  

  IAS 37 provisioning floored at interest rate of 0%

•  Pension provisions (c.p.)2

   Discount rate at YE 2020: 0.9%  Rough sensitivity:

-50 BP = + ~€470m

+50 BP = - ~€400m

• 1. Considering only the gross obligation amount, i.e. assuming no movements in Swedish Nuclear Waste Fund. ARO interest rates are derived (country-specific and term-specific) from market data.

• 2. Considering only defined benefit obligations (DBO), i.e. assuming no movements in plan assets. The discount rates used in the Uniper Group are essentially based on currency-specific returns available at the end of the respective fiscal year on high-quality corporate bonds and consider the average duration of the respective underlying obligations. The weighted-average duration ofthe defined benefit obligations measured within the Uniper Group as of December 31, 2020, is 22.8Y (2019: 22.9Y).

Outright power hedging in Germany and Nordic

Hedged prices and hedge ratios Germany1

Hedged prices and hedge ratios Nordic1

€/MWh

€/MWh

49

48

50

52

29

27

24

22

6

30

4

20

2

10

100%

90%

0

0

20202

2021

2022

2023

20202

2021

2022

2023

1, Price calculations are based on pro rata volumes. Contracts for differences and Guarantees of origins are included. 2. Achieved prices and volumes.

TWh

95%

85%

TWh

65%

25%

Uniper Group - Generation capacity in Europe and Russia

Generation capacity

In MW1

31 Dec 2019

Gas

Russia2 UK Germany Netherlands Sweden Hungary

7,139 7,131

4,180 4,188

2,912 2,912

525 526

449 447

428 428

Hard coal

Germany UK Netherlands

3,954 2,902

2,000 2,000

1,070 1,070

Lignite

Russia2 Germany

1,895 500

1,906 500

Hydro

Germany Sweden

1,927 1,927

1,771 1,771

Nuclear Other

Sweden Germany Sweden UK

1,988

1,418 1,418

1,162 1,162

221 221

Total

32,497

• 1. Legally attributable capacity view = Pro rata view.

• 2. Incl. Czech Republic (Czech Republic business sold as of 28th of April 2020).

31 Dec 2020

1,996

33,548

Uniper Group - Net electricity generation volumes in Europe and Russia

Electricity generation volumes

In TWh1

Gas

Russia UK Germany Netherlands France3 Hungary

Hard coal

Lignite

Hydro

Nuclear Total

Germany UK Netherlands France3

Russia GermanyGermany2 SwedenSweden

FY 2020	Q4 2020	FY 2019
36.0 10.2 1.9 1.5 0.0	9.5 3.0 1.5 0.3 0.0 0.6	38.6 13.0 0.9 1.8 2.0
2.2	2.6
6.2 0.4 4.7 0.0	1.3 0.3 1.5 0.0	5.7 0.7 3.1 0.3
4.0 2.1	1.1 0.3	6.0 3.6
4.3 9.4	0.9 2.5	5.3 8.2
11.5	2.8	16.7
94.6	25.6	108.4

• 1. Pro rata view; Net electricity generation volumes = Owned generation - own use losses - sales to minority owners + purchases from minorities.

• 2. Hydro Germany net generation sales additionally include pump-storage related water flows and line losses of pumping activities.

3. France sold.

Uniper Group - Adjusted EBIT(DA) by sub-segment

Adjusted EBITDA and EBIT

€m	FY 2020	FY 2019	FY 2020	FY 2019
Adj. EBITDA	Adj. EBITDA	Adj. EBIT	Adj. EBIT
European Generation	Subtotal	863	863	492	424
Hydro	324	304	264	243
Nuclear	116	60	62	-3
Fossil	462	519	211	208
Other / Consolidation	-39	-20	-45	-24
Global Commodities	Subtotal	671	435	496	287
Gas	688	322	607	250
International / Other	-53	70	-116	5
Power	35	43	5	32
Russian Power Generation	316	404	226	308
Administration / Consolidation	-193	-141	-216	-156
Total	1,657	1,561	998	863

Adjusted EBIT - Development by sub-segment

European Generation

Global Commodities

Russian Power Generation

€m

€m

€m

65

3

21

357

-21

-121

-27

-82

FY 2019

HydroNuc.

FossilCons.

FY 2020

FY 2019

GasInternat./PowerFY 2020

FY 2019

Russia

FY 2020

Other

•  Hydro: Higher volumes

  

  Gas midstream: Higher gas optimization

•  Nuclear: Positive price effects partly offset by lower volumes due to outages & phase-out of Ringhals 2

   International/Other: Lower results from

  North American power & gas business

   Russia: Negative volume/price effects, mainly driven by lower day-ahead prices and lower demand; negative FX-effect

•  Fossil: Optimization gains on a broader asset base, offset by lapse of positive carbon management effects (intra-group phasing with Global Commodities) and lower UK capacity market contribution

 Power: Significantly lower optimization result partly offset by lapse of negative carbon management effects (intra-group phasing with European Generation)

Uniper Group - Key financial performance items

Reconciliation of Adjusted EBITDA to Adjusted Net Income and Net income

€m

Adjusted EBITDA

Economic depreciation and amortization / reversals Adjusted EBIT

Economic interest result Taxes on operating result

Minority participations on operating result Adjusted net income

Non-operating result (before taxes and minorities)

Minority participations on non-operating earnings and on other financial result Taxes on non-operating result

Other financial result

Taxes on the other financial result

Net income/ loss attributable to shareholder of the Uniper SE

Sales1

FY 2020	FY 2019
1,657	1,561
-658	-698
998	863
39	18
-226	-230
-37	-37
774	614
-667	-80
32	3
122	-52
171	159
-36	-33
397	610
50,968	65,804
1. Comparative figures adjusted (margins increased and liquid funds decreased). Further information can be found in
Note 20 to the Consolidated Financial Statements.	Uniper SE, Presentation FY 2020, 04 March 2021	24

Uniper Group - Adjusted EBIT to Net Income

Reconciliation of Adjusted EBIT FY 2020 to Net Income FY 2020

Adj. EBIT

Economic interest, taxes, minorities

Adjusted Net IncomeNon-operating earnings

1. Net income attributable to Uniper shareholders.

Derivative financial instrumentsAdjustments from physically settled commodity derivatives

Net impairmentsOther

Taxes on non-operating earnings & other financial result, minorities

Net Income1

Uniper Group - Economic interest result (net)

Economic interest result

€m

FY 2019

Interest rate effects for leasing

-26 -26

Interest from financial assets / liabilities

74 56

Interest cost from provisions for pensions and similar provisions

-16 -20

Accretion of provisions for asset retirement obligation and other provisions Capitalized interest1

-8 -13

64 89

Other2

-48 -69

Economic interest result (net)

39 18

• 1. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the asset; borrowing cost are interest costs incurred by an entity in connection with the borrowing of funds.

• 2. Incl. e.g. interest due to tax provisions/receivables and adjustments due to changes in interest rates on provisions. Uniper SE, Presentation FY 2020, 04 March 2021

FY 2020

Uniper Group - Non-operating adjustments

Non-operating adjustments w/o interest1 €m

FY 2019

Impact of derivative financial instruments

-570 -1,228

Adjustments of revenue and cost of materials from physically settled commodity derivatives to the contract price Restructuring / cost management expenses / income

995 448

65 -50

Non-operating impairment charges / reversals Miscellaneous other non-operating earnings Net book gains / losses

92 874

-192 -90

10 -7

Non-operating adjustments w/o interest

399 -52

1. Comparative figures IFRS 9 adjusted, expenses , income (-).

FY 2020

Uniper Group - Cash-effective investments

Investments by segment

€m

European Generation Global Commodities Russian Power Generation Administration / Consolidation

Total

FY 2020	FY 2019	%
555 50 121 16	409 27 196 26	35.7 85.2 -38.3 -38.5
743	657	13.1

Investment split - Maintenance and growth

€m

Maintenance & replacement Growth

Total

FY 2020	FY 2019	%
336 406	361 297	-6.9 36.7
743	657	13.1

Uniper Group - Net financial position

Net financial position

€m
31 Dec 2020	31 Dec 2019
Liquid funds	289	871
Non-current securities	98	100
Margining receivables	835	336
Financial liabilities and liabilities from leases	1,743	1,935
Net financial position	520	628
Provisions for pensions and similar obligations	1,371	1,031
Asset retirement obligations1	1,223	991
Economic Net Debt	3,113	2,650
1. Reduced by receivables from the Swedish Nuclear Waste Fund.

Due to IFRS valuation rules (IFRIC 5), €223 million (December 31, 2019: €291 million) of Uniper's share of the fair value of the net assets of the Swedish Nuclear Waste Fund may not be capitalized on the balance sheet. Accordingly, there exists an additional receivable from the Swedish Nuclear Waste Fund ineligible for recognition on the balance sheet, and the economic net obligation for the decommissioning of the Swedish nuclear power plants is thus reported too high

in the table by the amount of this receivable.

Balance sheet - Non-current and current assets

€m

31 Dec 2019

Goodwill Intangible assets

1,751 1,886

734 742

Property, plant and equipment and right-of-use assets Companies accounted for under the equity method Other financial assets

9,769 10,201

380 446

926 710

Financial receivables and other financial assets Receivables from derivative financial instruments Other operating assets and contract assets Deferred tax assets

4,047 3,813

2,723 4,787

182 159

1,061 988

Non-current assets Inventories

21,572 23,732

1,166 1,508

Financial receivables and other financial assets1 Trade receivables

1,128 651

6,522 7,090

Receivables from derivative financial instruments Other operating assets and contract assets Income tax assets

7,284 8,601

1,999 1,287

23 16

Liquid funds1 Assets held for sale Current assets Total assets

289 871

239

-

18,650 20,024

40,222 43,756

1. Comparative figures restated due to a reclassification between the "Financial receivables and other financial assets" and "Liquid funds"

line items. Further information can be found in Notes 20 and 21 to the Consolidated Financial Statements."

31 Dec 2020

Balance sheet - Equity and liabilities

€m

31 Dec 2019

Capital stock

622 622

Additional paid-in capital Retained earnings

10,825 10,825

3,082 3,145

Accumulated other comprehensive income

-3,778 -3,207

Equity attributable to the shareholders of Uniper SE Attributable to non-controlling interest

10,751 11,386

437 556

Equity (net assets)

11,188 11,942

Financial liabilities and liabilities from leases Liabilities from derivative financial instruments Other operating liabilities and contract liabilities Provisions for pensions and similar obligations Miscellaneous provisions

1,027 1,119

2,477 4.277

193 694

1,371 1,031

5,657 5,422

Deferred tax liabilities Non-current liabilities

333 410

11,056 12,954

Financial liabilities and liabilities from leases Trade payables

716 815

6,804 7,308

Liabilities from derivative financial instruments Other operating liabilities and contract liabilities Income taxes

7,550 8,238

1,153 1,322

95 61

Miscellaneous provisions

1,456 1,115

Liabilities associated with assets held for sale Current liabilities

205

-

17,977 18,860

40,222 43,756

31 Dec 2020

Total equity and liabilities

Statement of cash flows1

€m

FY 2019

Net income / loss

402 644

Depreciation, amortization and impairment of intangible assets, of property, plant and equipment, and of right-of-use assets

1,077 1,750

Changes in provisions Changes in deferred taxes

103 -700

21 223

Other non-cash income and expenses

-369 -362

Gain/loss on disposal of intangible assets, property, plant and equipment, equity investments and securities (> 3M) Changes in operating assets and liabilities and in income taxes

10 -11

-3 -612

Cash provided by operating activities (operating cash flow)

1,241 932

Proceeds from disposals

83 346

Payments for investments

-743 -657

Proceeds from disposals of securities (>3M) and of financial receivables and fixed-term deposits2 Purchases of securities (>3M) and of financial receivables and fixed-term deposits

596 1,185

-1,064 -657

Changes in restricted cash and cash equivalents

- 4

-1,128 220

• 1. Note 28 to the Consolidated Financial Statements contains additional information on the Statement of Cash Flows.

• 2. Comparative figures restated due to a reclassification between the "Financial receivables and other financial assets"

and "Liquid funds" line items. Further information can be found in Notes 20 and 21 to the Cons. Financial Statements.

Cash provided (used for) by investing activities

Statement of cash flows1

€m

FY 2019

Cash proceeds/payments arising from changes in capital structure Cash dividends paid to shareholders of Uniper SE

4 3

-421 -329

Cash dividends paid to other shareholders Proceeds from new financial liabilities

-28 -32

450 55

Repayments of financial liabilities and reduction of outstanding lease liabilities Cash provided (used for) by financing activities

-684 -1,173

-679 -1,477

Net increase / decrease in cash and cash equivalents

-566 -326

Effect of foreign exchange rates on cash and cash equivalents Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents from deconsolidated groups

-18 9

825

Cash and cash equivalents of first-time consolidated companies Cash and cash equivalents at the end of the reporting period

1

1,138 -4 8

243

825

1. Note 28 to the Consolidated Financial Statements contains additional information on the Statement of Cash Flows.

FY 2020

Financial calendar & further information

Financial calendar

06 May 2021

Quarterly Statement January - March 2021 19 May 2021

2021 Annual Shareholders Meeting

11 August 2021

Interim Report January - June 2021

05 November 2021

Quarterly Statement January-September 2021

Further information

https://ir.uniper.energy

Uniper - Contact your Investor Relations team

Uniper SE, Presentation 9M 2020, 10 Nov. 2020

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Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercial standards. As a result, the aggregate amounts (sum totals or interim totals or differences or if numbers are put in relation) in this presentation may not correspond in all cases to the amounts contained in the underlying (unrounded) figures appearing in the consolidated financial statements. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts.

Uniper SE, Presentation FY 2020, 04 March 2021 36