Innovation Scouting & Strategic Co-Investments @ E.ON E.ON Innovation / SCI – Dr. Philipp Ulbrich Eilat, November 28, 2016

Two Leading Companies for Two Energy Worlds Uniper Renewables Upstream Energy Networks Global Trading Customer Solutions Generation German Nuclear

With Future E.ON's core businesses we are strongly positioned to succeed in the New Energy World Energy Networks Networks enjoy strong fundamental growth E.ON with sizeable presence in established regulatory regimes and markets with catch-up potential Renewables Renewables growth has constantly outgrown already ambitious market forecasts E.ON with strong track record in established markets and proven technologies Customers Solutions Still in early stage but will enjoy strong growth driven by e.g., digitalization E.ON to benefit from >30m customer base and strong innovation pipeline

Customer-centricity is more than only a word – CMO builds on E Customer-centricity is more than only a word – CMO builds on E.ON’s vision and drives the cultural change Vision Group Strategy Customer Solution Strategy Improving People’s Lives OUR PURPOSE OUR GOAL Your Partner of Choice for Energy Solutions OUR VALUES Acting Responsibly and with an Open Mind Winning Together Improving & Innovating Working Together Putting Our Customer First Customer centricity Best of two energy worlds Leading solutions for the new energy world

Democratization of Energy (Disruptive) innovation is happening outside our corporate environment and is tremendously driven by start-ups E.ON / Corporate Entrepreneur / Start-up Joy's law “no matter who you are, most of the smartest people work for someone else.” “The last 10% it takes to launch something takes as much energy as the first 90%.” Democratization of Energy Right mix of people Digitalization Agility In the mist of this change, we have to recognize that Understanding human needs and problems is not yet part of our NDA but key for new propositions We are not only in the mist of the change of the energy space, but also in the middle of a phenomena called “digital darwinism” Current culture is still very risk averse, process oriented, silo/ product thinking instead of system thinking On the other hand (Disruptive) innovation is happening and is tremendously driven by start-up To start with, according to Joy's law "no matter who you are, most of the smartest people work for someone else” Start-ups are a great source of disruptive innovation as they bring speed, agility and risk taking With limited resources successful start-ups focus their proposition on a human problem to solve People from start-ups are often digitally savvy and don´t have legacy IT to deal with BUT start-ups lack capital, market / customer access, brand and diversified knowledge Risk taking Consumer challenge Legacy Speed SCI / CVC SCI functions as bridge between the external start-up and our corporate energy world

SCI exists to bring more insights, faster innovation into E SCI exists to bring more insights, faster innovation into E.ON, de-risks commercial deals and build capabilities Key objectives SCI Value for E.ON Examples Deliver insights and uncover unknown unknowns Bring external innovation into E.ON (new disruptive technologies and business models) Combine commercial deals with financial investments Bring long-term strategic capabilities into E.ON Wide view of innovation topics More and faster innovation topics at lower risk De-risk commercial colla-boration with investor insights CVC activities to become part of the VC community and improve our ability to screen for external innovation and possible disruptive technologies To engage with the companies to be able to bring that external innovation into E.ON in the form of co-development/testing contracts or commercial role out contracts To by doing deep due diligence on the companies that we are looking to engage, we spot early on possible risks as these high risk start-up companies And if we help grow the company, why not participate in the upside? First Fuel – SME energy management tool. Most of our regions have voted SME as the key market we need to address with new tools and propositions Phoebus– Heat pump optimizer company ECT is planning to do a commercial deal with. We have signed a term sheet to invest equity in the company $4m and for every commercial deal we bring into the company, we will acquire further equity at no cost up to 51% of the company Varentec – decided against investment and commercial deal due to very weak management team. Also as part of the due diligence process we learn of the technology gaps and about a competitor that is better suited (GridCo) M&A advantages for strategic topics

And also creates value for the start-up companies Why start-ups like SCI Knowledge Validation Give access to E.ON expertise and resources Validate technology and provide brand credibility Commercial deal Financial strength Provide access to markets and customer base Grant access to growth capital and reliable follow-ons I already touched on this point, but why do these start ups need us? Because we bring significant energy and market knowledge, specially for Europe where we are present in almost every country Because we can bring credibility to their products by helping testing, but just by associating the E.ON brand with them Because we can be a great commercial partner with 5 GW of wind installed, 30 million customers and presence in 15 countries Because we can bring stable capital for growing the company And with all of this we can really grow the value of the company But without a promise of validation, commercial deal or access to knowledge this start up would not be interested in our capital stenght What happens after SCI invested “Start-up X” valuation after E.ON´s investment “Start-up X” valuation

How does our process function?

Contact information Would you like to propose an investment? Please contact us! Email: Ventures@eon.com …or just come visit us at: Innovation Innovation Scouting & Co-Investments B8, Brüsseler Platz 1, 45131 Essen Germany E.ON SCI US 649 Mission Street, Suite 416 San Francisco, CA 94105 United States