E.ON International Finance B.V.

Interim Report 2021

1 January 2021 – 30 June 2021

Amsterdam, The Netherlands

Condensed Interim Financial Statements 2

Content

Report of the Board of Management 3

Statement from the Board of Management 6
Unaudited Balance Sheet (before profit appropriation) 7
Unaudited Income Statement 8
Unaudited Cash Flow Statement 9
Notes to the Condensed Interim Financial Statements 10
Condensed Interim Financial Statements 3

Report of the Board of Management

General information

In the first half year of 2021 there was a change in both the composition of the Supervisory Board and the
Board of Management.
In the Supervisory Board Mr. S. Hloch has taken over the role of chairman from Mrs S. Weitz, who has left
the Board together with Mrs. A. Peters. The vacant positions were filled by Mr. H. Wuppermann and Mrs.
K. Preker.
As of June 30, 2021 the Supervisory Board comprises the following members:
• Mr. S. Hloch
• Mr. H. Wuppermann
• Mrs. K. Preker

Mr. Santegoeds was appointed as director of the Company and replaced Mr. Otto who left the position per
the end of May. As of June 30, 2021 the Board of Management comprises the following members:
• Mr. R. Santegoeds
• Mr. D. Jacobs
• Mrs. M. Springintveld
• Mr. J. Groesbeek

The objectives of E.ON International Finance B.V. are unchanged compared to the financial year ending
December 31, 2020. E.ON International Finance B.V. continues to be a wholly owned and fully consolidated
subsidiary of E.ON SE, Essen, Germany.

Internal organisation

The statutory seat of E.ON International Finance B.V. is Amsterdam, the Netherlands. The location of the
office has moved to Willemsplein 4, 5211 AK, ‘s-Hertogenbosch, The Netherlands.

At June 30, 2021 E.ON International Finance B.V. had one employee (2020: 1). All other personnel is either
seconded from other E.ON group companies or engaged from external service providers.

Market review

In the first half of 2021 the global economy was still dominated by the Covid-19 pandemic, although it
appears to be ending due to the widespread availability and delivery of effective vaccines. Society is
gradually opening up, because contact-limiting measures are also being relaxed. Thanks to extensive
government support measures and accommodative monetary policy by central banks, the global economy
has held up well. Attention is drawn to possible overheating of the economy and more structural inflation.
As a result of the improved macro-economic outlook, we saw a release of impairments. The expected
recovery is therefore much smoother than after the financial crisis.

Commodity markets played an important role in the first half of 2021. Higher commodity prices prompted
investors to raise their (long-term) inflation expectations or demand a higher risk premium for the
increased risk of higher inflation. As a result of these higher inflation expectations, global capital market
interest rates were also pushed up. This movement was stronger in the US than in Europe; partly because
of the US stimulus packages, but also because interest rates there had fallen much more sharply in 2020.
10-year US Treasuries rose from 0.92% (January 1, 2021) to 1.44% (June 30, 2021), while German 10-year
Bunds rose from -/-0.57% to -/-0.20% over the same period.

In the currency markets, the Euro/US Dollar was volatile and the year started around 1.22. At the end of
March, the low of around 1.17 was reached. Since then, interest rates in Europe have risen, largely
explaining the Euro/US Dollar recovery to 1.22.During the early months of 2021, the removal of the Brexit
risk premium and the roll-out of vaccines helped the British pound.
Condensed Interim Financial Statements 4
Globally, credit spreads gradually tightened. This also applied to utilities. As in 2020, there was also a high
value of transactions on the international debt capital markets in early 2021.

Business review

In the first half of 2021 E.ON International Finance B.V. did not issue any new notes into the debt capital
markets. The total amount of bonds outstanding as of June 30, 2021 decreased to € 15.1 billion compared
to € 15.4 billion of bonds outstanding at year end 2020, both amounts including the current maturity which
is presented under current liabilities in the balance sheet. The decrease is mainly explained by scheduled
maturities and resulting repayments of € 634 million, partly offset by foreign exchange effects on Non-Euro
denominated bonds of € 0.3 billion.

In 2007, E.ON International Finance B.V. granted a fixed rate loan for a notional amount of GBP 900 million
with a repayment date of 30 October 2037 under a "Master Agreement for Awarding Loans" to E.ON UK
plc. With the consent of E.ON International Finance B.V., EON UK plc transferred this loan to its parent
company E.ON UK Holding Company Limited on 21 June 2021. The loan is subject to a new Master
Agreement entered into by E.ON International Finance B.V. and E.ON UK Holding Company Limited.

Besides the above pictured foreign exchange effects on the Euro value of Non-Euro denominated bonds,
the market developments only had a limited impact on E.ON International Finance B.V.’s bond business.

E.ON’s creditworthiness has been assessed by Standard & Poor’s (“S&P”) and Moody’s with long-term
ratings of BBB and Baa2, respectively. As all bonds outstanding are guaranteed by E.ON SE, the ratings
continue to be a significant support for E.ON International Finance B.V.

The total asset base decreased to € 16.1 billion as of June 30, 2021 compared to € 16.4 billion at year end
2020, mainly explained by the aforementioned repayments, partly offset by foreign exchange effects.
Furthermore, E.ON International Finance B.V.’s net profit of € 15.2 million for the first half year of 2020
decreased to a profit of € 1.1 million for the reporting period. This is mainly due to the one-time profit of €
14 million realized from the sale of the group security in June 2020.

Financial information

Preparation of Financial Statements

The financial statements have been prepared in accordance with the statutory provisions of Part 9, Book 2,
of the Netherlands Civil Code and the firm pronouncements in the Guidelines for Annual Reporting in the
Netherlands as issued by the Dutch Accounting Standards Board.

The Interim Report 2021 has followed the same principles of recognizing and measuring as have been used
for the preparation of the Financial Report 2020.

The Interim Report 2021 has not been audited nor has it been reviewed by an audit firm.

Financial performance

E.ON International Finance B.V. closed the first six months of 2021 with a profit from ordinary activities
before taxes of approximately € 0.7 million, compared to a profit before taxes of € 15.1 million in the first
half year of 2020.

Risk Information

E.ON International Finance B.V.’s activities expose it to a variety of financial risks: market risk (including
currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity
Condensed Interim Financial Statements 5
risk. The risk profile of E.ON International Finance B.V. did not materially change compared to the end of
2020.

The overall risk management programme of E.ON International Finance B.V. focuses on the unpredictability
of financial markets and seeks to minimize potential adverse effects on E.ON International Finance B.V.’s
financial performance.

E.ON International Finance B.V. manages its risks with the procedures and systems used within the E.ON
group. The Board is of the opinion that these procedures and systems provide an adequate risk
management for E.ON International Finance B.V.

Amsterdam, August 20, 2021

Board of Management, E.ON International Finance B.V.

Mr. R. Santegoeds Mrs. M. Springintveld Mr. J. Groesbeek Mr. D. Jacobs

Condensed Interim Financial Statements 6

Statement from the Board of Management

The Board of Management state that to the best of their knowledge, the condensed interim financial
statements of 2021 have been prepared in accordance with the statutory provisions of Part 9, Book 2, of
the Netherlands Civil Code and the firm pronouncements in the Guidelines for Annual Reporting in the
Netherlands as issued by the Dutch Accounting Standards Board, give a true and fair view of the assets,
liabilities, financial position and profit or loss of E.ON International Finance B.V. and that the management
report includes a fair review of the development and performance of the business and the position of E.ON
International Finance B.V., together with a description of the principal risks and uncertainties that it faces.

The Interim Report 2021 has not been audited nor has it been reviewed by an audit firm.

Amsterdam, August 20, 2021

Board of Management, E.ON International Finance B.V.

Mr. R. Santegoeds Mrs. M. Springintveld Mr. J. Groesbeek Mr. D. Jacobs

Condensed Interim Financial Statements 7

Unaudited Balance Sheet (before profit appropriation)

Jun 30, 2021 Dec 31, 2020

€ in thousands Note Unaudited Audited

Financial fixed assets

Loans to shareholder 3 3,071,818 2,967,992
Loans to group entities 3 11,455,349 11,228,786
Deferred tax asset 3 384 -
14,527,551 14,196,778

Current assets
Amounts due from shareholder 61,356 122,071
Amounts due from group entities 1,333,127 1,919,669
1,394,483 2,041,740

Cash 4 143,781 131,387

Total assets 16,065,815 16,369,905

Shareholders’ equity
Issued share capital 200 200
Share premium reserve 36,992 36,992
Other reserves 531,503 516,382
Undistributed profit 1,129 15,121
5 569,824 568,695

Borrowings
Bonds 6 14,126,495 13,788,194

Current liabilities
Amounts due to shareholder 25,563 9,862
Amounts due to others 1,343,933 2,003,154
1,369,496 2,013,016

Total equity and liabilities 16,065,815 16,369,905

Condensed Interim Financial Statements 8
Unaudited Income Statement

Six months ended June 30,

2021 2020
Unaudited Unaudited
€ in thousands Note

Interest and similar income 9 389,656 193,801

Exchange rate difference gains 410,729 209,999
Financial income 800,385 403,800

Interest and similar expenses 10 (387,822) (177,455)

Exchange rate difference losses (411,601) (210,826)
Financial expenses (799,423) (388,281)

Total financial result 962 15,519

Operating expenses (217) (297)

Total operating expenses (217) (297)

Result of ordinary activities before

745 15,222
corporate income tax

Corporate income taxes 11 384 -

Net profit 1,129 15,222

Condensed Interim Financial Statements 9

Unaudited Cash Flow Statement

Six months ended June 30

2021 2020
€ in thousands Note unaudited unaudited

Interest paid (388.445) (265.389)

Interest received 389.692 261.529
Expenses paid (262) (249)

Cash flows from operating activities 985 (4.109)

Loan repayments received from related parties 645.426 1.400.000

Repayment of other securities - 764.246

Cash flows from investing activities 645.426 2.164.246

Repayments of borrowings (634.017) (1.400.000)

Repayment of loan received from related parties - (518.318)
Investment in loans to related parties - (100.000)

Cash flows from financing activities (634.017) (2.018.318)

Net increase (decrease) in cash 12.394 141.819

Cash at January 1 131.387 -

Cash at June 30 4 143.781 141.819
Condensed Interim Financial Statements 10
Notes to the Condensed Interim Financial Statements

(1) General information

The activities of E.ON International Finance B.V. mainly comprise the financing of E.ON group companies.

E.ON International Finance B.V., a corporation with limited liability, considers E.ON SE, Essen, Germany to
be its ultimate parent company. The financial information of E.ON International Finance B.V. is included in
the consolidated financial statements of E.ON SE, Germany. Copies of the consolidated financial statements
of E.ON SE can be obtained from E.ON SE in Essen.

The statutory seat of E.ON International Finance B.V. is Amsterdam, the Netherlands. The location of the
office is Willemsplein 4, 5211 AK, ‘s-Hertogenbosch, The Netherlands. E.ON International Finance B.V. is
registered with the Dutch Trade register under number 33174429.

These financial statements were authorized for issue by the Board of Management on August 20, 2021.

(2) Summary of significant accounting policies

Basis of preparation

The Condensed Interim Financial Statements have been prepared in accordance with the statutory
provisions of Part 9, Book 2, of the Netherlands Civil Code and the firm pronouncements in the Guidelines
for Annual Reporting in the Netherlands as issued by the Dutch Accounting Standards Board.

This interim report does not contain all information required for a full year financial report and needs to be
read in conjunction with the E.ON International Finance B.V. 2020 Annual Report, which has been prepared
in accordance with the statutory provisions of Part 9, Book 2, of the Netherlands Civil Code and the firm
pronouncements in the Guidelines for Annual Reporting in the Netherlands as issued by the Dutch
Accounting Standards Board.

The principles applied in preparing the Condensed Interim Financial Statement of E.ON International
Finance B.V. are similar to those applied in the E.ON International Finance B.V. 2020 Annual Report.

Comparison with prior period

The basis used for the valuation and result definition has remained unchanged with respect to the year-end
2020.

Cash Flow Statement

The Cash Flow Statement was prepared according to the direct method. The funds included in the Cash
Flow Statement consist of cash at banks and the inhouse bank accounts with E.ON SE. Cash flows in foreign
currencies have been translated at the exchange rates existing on the day of settlement.

Related parties

In conducting its activities, E.ON International Finance B.V. has several transactions with its shareholder
E.ON SE, E.ON group companies and non-consolidated E.ON companies. The types and the content of the
transactions with related parties remain almost unchanged compared to the E.ON International Finance
B.V. 2020 Annual Report.
Condensed Interim Financial Statements 11
Foreign currency translation

The functional currency as well as the reporting currency of E.ON International Finance B.V, is the Euro (€).
The financial statements are presented in Euro.

Transactions denominated in foreign currencies are translated at the exchange rate at the date of the
transaction. Monetary foreign currency items are adjusted to the exchange rate at each balance sheet
date; any gains or losses resulting from fluctuations in the relevant currencies are included in the financial
income and expenses, respectively.

Settled transactions in foreign currencies during the reporting period have been incorporated in the
financial statements at the rate of settlement.

The following table shows the movements in exchange rates of the relevant foreign currencies for the
periods indicated:

Jun 30, 2021 Dec 31, 2020 Jun 30, 2020

ISO code

British Pound EUR/GBP 0.86 0.90 0.91

U.S. Dollar EUR/USD 1.19 1.23 1.12
Japanese Yen EUR/JPY 131.43 126.49 120.66
Hong Kong Dollar EUR/HKD 9.23 9.51 8.68

Critical accounting estimates and judgments

The preparation of the financial statements requires management to make estimates and assumptions. It
also requires management to exercise its judgment in the process of applying E.ON International Finance
B.V.’s accounting policies. Estimates and judgments are based on past experience and on additional
knowledge obtained on transactions to be reported and are reviewed on an ongoing basis. E.ON
International Finance B.V. makes estimates and assumptions concerning future events. Actual events may
differ from expectations and actual results will, by definition, seldom equal the accounting estimates.

Unless explained otherwise, the estimates made by the management in preparing the Condensed Interim
Financial Statement are similar to those used in the E.ON International Finance B.V. 2020 Annual Report.

(3) Financial fixed assets

Movement schedule loans

Loans to Loans to Group Total Loans

Shareholder Entities
€ in thousands

Non-current loans at January 1, 2021 2,967,992 11,228,786 14,196,778

- Increase - - -
- Amortization 135 371 506
- Exchange differences 115,520 226,192 341,712
- Reclassification to current maturity (11,829) - (11,829)
Non-current loans at June 30, 2021 3,071,818 11,455,349 14,527,167

During the first half year of 2021, the non-current loans in total increased by € 0.3 billion mainly due to the
foreign exchange developments.
Condensed Interim Financial Statements 12
The following tables show a detailed breakdown of these developments:

Carrying amounts of loans in currencies to shareholder Jun 30 Dec 31

€ in thousands 2021 2020

GBP 2,246,650 2,169,076

USD 836,997 810,325

Total non-current and current loans to shareholder 3,083,647 2,979,401

Current part, included in current assets (11,829) (11,409)

Total non-current loans to shareholder 3,071,818 2,967,992

The increase in the Euro amount of British Pound denominated loans is solely due to the weakening of the
Euro against the British Pound. The USD denominated loan increased slightly as result of the strengthening
of the U.S. Dollar against the Euro.

Carrying amounts of loans in currencies to group entities Jun 30 Dec 31

€ in thousands 2021 2020

EUR 7,494,060 7,493,882

GBP 4,943,824 5,352,006
USD 17,465 16,915

Total non-current and current loans to group entities 12,455,349 12,862,803

Current part, included in current assets (1,000,000) (1,634,017)

Total non-current loans to group entities 11,455,349 11,228,786

The amount of total non-current and current loans to group entities decreased to € 12.5 billion due to the
current maturities in the first half year of 2021. Three loans with a total amount of GBP 570.0 million (€
634.0 million) have been repaid by innogy SE. This decrease is partly offset by an increase on the Euro
amount of the British Pound denominated loans resulted from the weakening of the Euro against the
British Pound.

Movement schedule deferred tax asset Jun 30 Dec 31

€ in thousands 2021 2020

Balance at January 1 - -
Movements 384 -

Balance at June 30 / December 31 384 -

The deferred tax asset relates to temporary differences between the tax bases and the carrying amounts of
assets and liabilities.

(4) Cash

Specification of Cash Jun 30 Dec 31

€ in thousands 2021 2020

Inhouse banking account at shareholder 143,781 131,387

Cash 143,781 131,387

Condensed Interim Financial Statements 13
Total cash includes the inhouse bank accounts at E.ON SE. Having such inhouse bank accounts at E.ON SE is
common practice within the E.ON group. The total cash is at free disposal of E.ON International Finance
B.V. and is almost entirely denominated in Euro.

(5) Shareholders’ equity

The total authorized number of ordinary shares is 9,000 (2020: 9,000) with a par value of € 100 per share.
The number of issued shares is 2,000 (2020: 2,000). All issued shares are fully paid in.

The share premium results exclusively from additional paid in capital.

Movement schedule equity Issued Share Other Undistributed Total

capital premium reserves profit
reserve
€ in thousands

At January 1, 2021 200 36,992 516,382 15,121 568,695

Appropriation of profit - - 15,121 (15,121) -
Profit for the period ended June 30, 2021 - - - 1,129 1,129

At June 30, 2021 200 36,992 531,503 1,129 569,824

Total equity of E.ON International Finance B.V. increased to € 569.8 million due to the profit € 1.1 million
generated in the first six months of 2021.

(6) Bonds

Movement schedule bonds Jun 30 Dec 31

€ in thousands 2021 2020

Non-current bonds at January 1 13,788,194 4,721,397

- Increase - 10,951,022
- Amortization (704) 923
- Exchange differences 339,005 (251,131)
- Reclassification to current maturity - (1,634,017)

Non-current bonds at June 30 / December 31 14,126,495 13,788,194

In the first six months of 2021 no new bonds were issued by E.ON International Finance B.V. The increase in
the non-current bond amounts outstanding mainly resulted from the foreign exchange effects resulting in
an increase of the carrying Euro amount of such bonds, with the nominal denominated amounts of bonds
outstanding remaining unchanged.
Condensed Interim Financial Statements 14
The carrying amounts of the bonds are denominated in the following currencies:

Carrying amounts of bonds in currencies Jun 30 Dec 31

€ in thousands 2021 2020

EUR 7,123,453 7,125,759

GBP 6,885,413 7,204,269
USD 855,416 827,385
JPY 151,183 157,098
HKD 111,030 107,700

Total non-current and current bonds 15,126,495 15,422,211

Current part, included in current liabilities (1,000,000) (1,634,017)

Total non-current bonds 14,126,495 13,788,194

The amount of outstanding bonds decreased from € 15.4 million to € 15.1 million, mainly due to the
scheduled maturities and the resulting repayments of such instruments (GBP 570.0 million, € 634.0
million), partly offset by an increase resulted from the weakening of the Euro against the British Pound. The
Euro value of the U.S. Dollar, Japanese Yen Hong Kong Dollar denominated bonds mostly changed due to
foreign exchange effects with the nominal denominated amounts remaining unchanged.

The market value of bonds per June 30, 2021 is € 18.1 billion (December 31, 2020: € 18.9 billion).

(7) Contingent liability

In addition to the liabilities carried on the balance sheet there are other (mostly long term) commitments
arising from contracts entered into with third parties on the basis of legal requirements.

Specification notional amounts financial instruments Jun 30 Dec 31

€ in thousands 2021 2020

Currency swaps 249,038 249,038

Total amounts due to others 249,038 249,038

The amount of swaps transactions entered into by E.ON International Finance B.V. did not change
compared to 31 December 2020.

Specification fair values financial instruments Jun 30 Dec 31

€ in thousands 2021 2020

Currency swaps (53,525) (70,026)

Total amounts due to others (53,525) (70,026)

The changes in the fair value amount of currency swaps correspond to the changes in the foreign
exchanges rates of currencies hedged by such instruments.

(8) Credit facility agreements

As of June 30, 2021 E.ON International Finance B.V. did not participate in any capital market oriented
facility agreements. Consequently, no funds are outstanding as of June 30, 2021 (December 31, 2020: € 0).
Condensed Interim Financial Statements 15
(9) Interest and similar income

Specification interest and similar income Six months ended June 30,
€ in thousands 2021 2020

- interest and similar income from shareholder 97,242 94,103

- interest and similar income from group entities 292,414 99,698
Total interest and similar income 389,656 193,801

Interest and similar income increased compared to prior year mainly as a result of the increased lending
volumes following the acquisitions of the new group loan instruments as part of the liability management
transaction in November 2020. This impact is partly offset by the € 14 million one-time gain from the sale
of the group security in June 2020.

(10) Interest and similar expenses

Specification interest and similar expenses Six months ended June 30,
€ in thousands 2021 2020

- interest expense to shareholder 23,489 11,169

- interest expense to others 364,333 166,286
Total interest and similar expense 387,822 177,455

Interest and similar expenses also increased in the first half of 2021 mainly as a result of the assumed
bonds following the liability management transaction as explained in note 9.

(11) Corporate income taxes

Specification corporate income tax Six months ended June 30,

€ in thousands 2021 2020

Current tax expense - -

Net movement deferred tax 384 -
Income tax income 384 -

Income before tax 745 -

Effective tax rate (51.5%) 0%

Income after tax 1.129 -

The statutory tax rate is 25% for the year 2020. The difference between statutory tax rate and effective
rate is mainly explained by the recognition of a deferred tax asset.
Condensed Interim Financial Statements 16
(12) Subsequent events

No significant events, which could have a material impact, occurred between 30 June 2021 and the date on
which the Board of Management approved and authorized these financial statements for issue.

Amsterdam, August 20, 2021

Board of Management, E.ON International Finance B.V.

Mr. R. Santegoeds Mrs. M. Springintveld Mr. J. Groesbeek Mr. D. Jacobs