Harry Wyburd: It has. Thank you very much.
Iris Eveleigh: Thank you. Next question comes from Alberto Gandolfi from Goldman. Hi, Alberto.
Alberto Gandolfi: Thank you so much. Hi, good morning and hi, Marc. Thanks for taking my two questions. I’m not trying to be confrontational but I’m trying to understand here how cautious E.ON is being right now. So going back to 2023 guidance first. I actually figure out the normal quarter, given the current condition from the bottom line perspective is more €350 million to €650 million. So I think Marc, what does the buffer you talk about related to? Is it against again energy crisis and high gas prices. And if so, we have just seen half of the quarter. So – and we have pretty good weather forecast for the next two weeks with 99% storage fill rate. So if you were to give a probability based approach to this what would you think is the probability that actually you need to use in the second half of the quarter this buffer.
And was I right on the €350 million to €650 million assessment please. That’s just the first one. Thank you for your patience. The second question, thank you, Marc, is I know there’s a lot of moving parts in 2023, dispatching profits some one-offs from the UK just to name a couple. But E.ON is broadly achieving its 2027 target, four years ahead. And this is remarkable, so in my opinion but also is E.ON now going to be a next growth company, no growth to 2027 or are there perhaps levers that you’re going to discuss the full year results. CapEx could be one allowed returns, other levers that we as a community should be thinking about so that we do not consider E.ON as an ex growth company. And thank you for indulging.
Marc Spieker: Yes. I bear to this. I don’t perceive this as confrontational, so I can take away your worries. It’s a fair question. So look on the second point, of course, as a management team, we are not running with the ambition to have an ex growth company. And of course, we are looking to continually grow our company. However, our investors can also rest assured about that we will be very disciplined when it comes about the efficiency of our capital allocation. And in that sense, yes, that’s a set way to our full year results where we will then release. But of course, you should assume that the market should assume that we would not just kind of sit and relax and looking at an ex growth company, but want to achieve more.
And with regard to the first question, look, I wouldn’t know over analyze and over-think our guidance and communication in that respect. What you can rest assured about is that we are very transparent. And so, you have the €300 million and we will then tell you in March where it ends up. I think, again, we’re — in what the market should take away from today, whatever is not going to happen in the fourth quarter, it should be from an aggregate financial outcome, it should be regarded as a one-off. So this will not change the tectonics of our sustainable margin delivery beyond what I said that the €1.5 billion to €1.7 billion. So this €300 million lasting increase in margins will be delivered much earlier. And in that sense, I would not overcook now and over-think now, take what we communicate and as you said, it’s just six weeks to go.
So you can observe the marketplace as well. And you will probably then understand before we communicate even what likelihood is what — where the €300 million should end up. I think that’s what I would say about the Q4.
Alberto Gandolfi: Thank you so much.
Iris Eveleigh: Okay. Next question comes from Bartek from SocGen. Hello, Bartek.
Bartek: Okay. Hello, good morning. Thank you very much. Too many issues to discuss. Firstly on the CapEx guidance, I just wonder how much of this €300 million is coming from just inflation and how much is coming from a real sort of amount of work being processed? And consequently, how does it look from a regulatory perspective? Is all the increase in CapEx going to be included in wrapping? There is no issues to include it or there are issues to include rubber delay to include the CapEx in a overall delays in it. And then, secondly on maybe your hedging in the supply business. I just wonder how hedges have been performing so far in the nine months, given the fact that probably the power demand around many countries is significantly below last year’s.
So consequently, you may be a seller of your hedges on the market. So maybe if you can comment on this one, whether this is indeed the case and whether you are actually gaining money on this or losing money on this. Thank you very much.
Marc Spieker: Yeah, Bartek thanks for the questions. On the CapEx guidance is it now nominal real, it’s all real. So the €300 million is real assets and not an inflationary effect. And yes it’s all going to be rap effective. This is how our various regulatory regimes work it’s kind of with one year time lag, so from next year onwards then also earnings effective. And on the hedges, you know, that we are — don’t like to talk about our hedging activities. And that’s why I’m a bit limited in what I can say about that. I think what you will understand clearly is that against higher prices and increasing volatility, flexibility in how we manage our procurement portfolio is much more important than it was in the past. And I guess the background I’m very confident that with the excellent performance that we have demonstrated during the last 18 months in managing and handling that volatility and to flexibly adjust end-to-end our portfolio from procurement to the way how we price and acquire customers that we will continue to diminish that very well.
I can’t make it more specific.
Q – Bartek: Terrific. Thank you.
Iris Eveleigh: Turning to the next question, which comes from Piotr from Citi.
Piotr Dzieciolowski: Hi, good morning everybody. I have two questions please. So firstly I wanted to ask you about your supply business. To what extent does you want to go to your customers and maybe change the terms of the contracts and there’s a willingness on the customer side to extend a contract that end right here right now with a high margin into more like a longer duration contracts and potentially spreading the next year margin into a more like a three-year contract and that’s the way you could maybe shift a bit of margin into the future periods. Is there any process like this going on among your customers? And second when you talk about the structural change of the supply market, I just wanted to ask you about what is different when you go into a tenders for SMEs or larger customers in a sense that competitors don’t have a balance sheet there’s less of a competition.
