We consider generalized Scherk-Schwarz reductions of E_{9} exceptional field theory to D=2 space-time dimensions and, in particular, construct the resulting scalar potential of all gauged supergravities that can be obtained in this way. This provides the first general expression for a multitude of theories with an interesting structure of vacua, covering potentially many new AdS_{2} cases. As an application, we prove the consistency of the truncation of eleven-dimensional supergravity on S^{8}×S^{1} to SO(9) gauged maximal supergravity. Fluctuations around its supersymmetric SO(9)-invariant vacuum describe holographically the dynamics of interacting D0-branes.