EVN Company presentation. September 2012

Transcription

1 EVN Company presentation September 2012

2 2 Agenda EVN at a glance Investments and projects Financial performance Q /12 Financial performance 2010/11

3 EVN at a glance 3 EVN at a glance Environmental Services 12% Energy Supply SEE 29% Profile - Leading integrated Energy and Environmental Services company serving customers in Lower Austria, SEE and CEE - Key business areas: electricity, gas, heating, drinking water supply, wastewater treatment, waste incineration - Group net profit (2010/11): EUR 189.7m ( 8.4%) - Net cash flow from operating activities (2010/11): EUR 522.0m (+4.6%) - Employees (2010/11): 8,250, ~70% abroad - Rating: A3, stable (Moody s) BBB+, stable (Standard & Poor s) Contribution by business segments Revenues 1) EBITDA 1) Generation 3% Network Infrastructure Austria 16% Energy Trade and Supply 40% 1) Pre consolidation adjustments Environment al Services 14% Energy Trade and Supply 22% Generation 7% EUR 2,729.2m Energy Supply SEE 18% EUR 471.4m Network Infrastructure Austria 39% Key metrics (2010/11) Generation - Electricity generation capacity: 1,873 MW (thermal: 1,434 MW; renewable: 439 MW) - Production mix: 77% thermal, 23% renewable - Coverage ratio: 16.3% Networks - Electricity: 134,308 km - Gas: 13,630 km - Heating: 602 km Energy supply - Customers: 3.7 million - Sales volume: 28.8 TWh Environmental Services million drinking water customers in Lower Austria - Waste incineration plants of 500,000 tons p.a. in Lower Austria and 360,000 tons p.a. in Moscow - More than 93 drinking and wastewater plants servicing about 14 million customers throughout Europe

4 EVN at a glance 4 EVN at a glance active in 21 countries Key geographic areas - Lower Austria and Germany - South Eastern Europe (SEE) - Central and Eastern Europe (CEE) Activities - Lower Austria: Energy business: full integration Environmental services business: drinking water supply, wastewater treatment, waste incineration - SEE: Electricity and heat distribution as well as gas operation - CEE: drinking water supply, wastewater treatment and waste incineration

5 EVN at a glance 5 Business segments Generation - Production (2010/11): 3,000 GWh - Efficient and flexible thermal fleet (coal, gas, oil) - Sizeable renewable energy portfolio - Projects in Austria, Albania and Bulgaria Energy Supply South East Europe - Electricity distribution and supply business in BG, MK - ~13 TWh sales volume - Heat generation and sales in Bulgaria - Project to build/operate natural gas network in Croatia Network Infrastructure Austria - Electricity and gas distribution networks in Lower Austria - Cable TV and telecommunication networks in Lower Austria and Burgenland Energy Trade and Supply - Sourcing of electricity and primary energy - Sales to end customers in AT and GER - Trading on wholesale markets - Heat generation and sales in AT - ~15 16 TWh sales volumes p.a. Environmental Services - AT: drinking water supply, wastewater treatment, waste incineration - International project business: drinking water supply, wastewater treatment, waste incineration - 18 Central and Eastern and SEE countries Strategic Investments and Other Business - VERBUND - RAG - Burgenland Holding

6 EVN at a glance 6 EVN strategic priorities 1 Selective generation asset growth Market leadership in Austrian supply business Required proven upside in SEE Track record in environmental services business Capitalise on strategic investments Capital discipline and credit rating Increase coverage ratio from 20% to 40% 60% Increase renewable generation from 30% to 50% More than 60% of revenues and more than 80% of EBITDA from stable core Austrian business Maintain high level of efficiency and profitability of regulated operations Constant review of profitability for SEE region Continue improvements in SEE Competitive business model through integration Successful participation in more than 90 projects Review of strategic stakes with focus on cash flow contribution and multi-utility strategy Focus on enhanced credit standing Shareholder returns with review of CAPEX and ROI by business segments

7 EVN at a glance 7 Implementation of strategic goals in 2010/11 and 2011/12 Expansion of renewable energy in Lower Austria and abroad - Wind: Four wind parks in Lower Austria (54 MW) Kavarna, Bulgaria (16 MW) - Hydro: Acquisition of 13% of VERBUND Innkraftwerke GmbH in Bavaria Capacity increase of existing small hydro power plants in Lower Austria Clear majority (70%) in the hydropower project Gorna Arda in Bulgaria Start of the trail operations of the first part of Ashta in Albania (25 MW) - Photovoltaic/biomass: Expansion of biomass capacity in the home market (> 60 in Austria) Completion of EVN s largest photovoltaic plant in Bulgaria Key investments in security of supply - Start of operation of the gas transportation pipeline Südschiene and construction begin of Westschiene in Lower Austria - Construction begin of the gas grid expansion in Zadar, Croatia - First household customers connected to EVN gas grid on June 1 st, Start-up of the cogeneration plant in Plovdiv, Bulgaria

8 EVN at a glance 8 1 Increase coverage ratio and diversify generation portfolio Coverage ratio 70% 60% 50% 40% 30% 20% 10% 0% 100% 80% 60% 56% 23% 69% Market entrance Bulgaria Market entrance Macedonia 40% 29% 19% 21% 18% 18% 16% 32% 32% 36% 36% 35% 50% 40%- 60% 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 longterm Generation mix Increase coverage ratio long-term to 40% 60% on Group level - Hold coverage ratio in CWE - Increase coverage ratio in SEE Diversify generation portfolio - Increase renewable generation up to 50% of output - Focus on wind in Austria and CWE - Focus on hydro in SEE 40% 20% 77% 68% 68% 64% 64% 65% 50% 0% 05/06 06/07 07/08 08/09 09/10 10/11 long-term Conventional power generation Renewables

9 EVN at a glance 9 1 Ongoing projects to double generation output by 2020 (Pro-rata installed capacity, MW) Status quo 2010/11 Walsum, Germany (financed) Wind parks (partly financed) 1) 2) Ashta, Albania (financed) Gorna Arda, Bulgaria Devoll, Albania Others Project Walsum Wind parks 1) Ashta Gorna Arda Devoll Others 2) Fuel type Hard coal Wind Hydro Hydro Hydro Various Pro-rata investment (EURm) n/a Expected COD / /19 n/a 1) Includes Austrian wind parks as well as Kavarna wind park 2) Contains smaller hydro power plants in Austria, cogeneration power plant in Plovdiv, Bulgaria

10 EVN at a glance 10 2 Majority of revenues and EBITDA generated in domestic and regulated businesses Revenue breakdown by segments 2010/11 1) Geographic revenue breakdown 2) Environmental Services 12% Generation 3% Network Infrastructure Austria 16% EURm_ , , , % 31% 31% 6% 7% 9% International: 40% Energy Supply SEE 29% Share of regulated EBITDA 3) Energy Trade and Supply 40% % 62% 60% /09 09/10 10/11 Austria CEE SEE Geographic EBITDA breakdown 2) % % Regulated: 53% 21% 39% 20% % % % 17% % 79% 76% % 44% 46% /09 09/10 10/ /09 09/10 10/11 Unregulated business Regulated international business Regulated domestic business Austria International 1) Pre consolidation adjustments 2) International business includes Energy Supply South East Europe and the international project business of the Environmental Services Segment 3) The regulated domestic business includes mainly the Network Infrastructure Austria (excl. cable and telecom activities) and the regulated international business Energy Supply South East Europe EURm EURm_

11 EVN at a glance 11 2 Regulated business in Austria Network Electricity Gas Comments Reset date (Regulatory period length) 1 Jan 2014 (4 years) 1 Jan 2013 (5 years) RAB (EUR m) Not public Not public Next reset of WACC and X factor Capex retrospectively monitored each year WACC (pre-tax, nominal) 7.0% 7.0% X factor sector (Xgen) 1.95% 1.95% X factor company specific 0.25% 0.00% Set for length of regulatory period X factor the same for all companies Additional X factor is company specific Inflation Set annually Set annually Network Operator Price Index 50% of the efficiency gains during one regulatory period are passed on to end customers. Source: E-Control 2010, company information

12 EVN at a glance 12 3 Regulated business in SEE Electricity Bulgaria Macedonia Regulatory authority Reset date (Regulatory period length) SEWRC (State Energy and Water Regulatory Commission) 1 Jul 2013 (5 years) ERC (Energy Regulatory Commission) 1 Jan 2015 (3 years) RAB (EUR m) Not public Not public WACC (pre-tax, nominal) 12.0% % Accepted grid losses 15.0% 14.0% X factor Yes No Source: Regulators in Bulgaria (SEWRC) and in Macedonia (ERC)

13 EVN at a glance 13 3 Regulated business in South Eastern Europe EVN buys energy from public provider at regulated prices and sells to end-customers at regulated prices Bulgaria: - District heating plant in Plovdiv - Sales volumes (2010/11): 8,163 GWh Macedonia: - Entire electricity distribution network run by EVN - Sales volumes (2010/11): 5,233 GWh Croatia: - Project to build and operate natural gas network in Zadar, Sibenik and Split - Customer potential: 130,000 households Bulgaria Market entry in 2005 Plovdiv Macedonia Market entry in 2006 Skopje

14 EVN at a glance 14 3 Upside potential from SEE market development Illustrative electricity sales volumes per customer 1) Electricity prices for households (EUR cent/kwh) Improvement of grid efficiency % 100% 100% 20 80% 80% 15 60% 40% 20% 54% % 24% 22% 21% 17% 18% 15% 16% 14% 13% 13% 12% 12% 0% EVN in Bulgaria EVN in Macedonia EVN in Lower Austria 0 Bulgaria Macedonia Czech Republic Austria Germany 2008/ / /11 EU-27 04/05 05/06 06/07 07/08 08/09 09/10 10/11 Grid losses, BG Grid losses, MK 1) In %, basis: Lower Austria = 100%

15 EVN at a glance 15 4 Competitive business model through integration of environmental services business Successful participation in 93 projects in 18 countries since 1983 Strong demand for infrastructure projects set to continue Contract volume of EUR 1.3bn with attractive return potential from international projects Underpinned by stable contributions from drinking water supply and wastewater treatment businesses

16 EVN at a glance 16 5 Capitalising on strategic investments and at-equity stakes 12.63% # 1 electricity producer in Austria with 8.6 GW installed capacity 50.03% # 2 oil and gas producer in Austria, one of the largest gas storage operators in Central Europe with 5bn m³ working gas capacity by % # 1 green energy producer in Austria with 242 MW installed capacity and local gas distributor 13.0% VERBUND- Innkraftwerke GmbH 13 river-run plants with 312 MW installed capacity (EVN stake: 41 MW) 16.51% # 1 distributor and business-to-business natural gas supplier in Austria with export quota of above 50%

17 EVN at a glance 17 5 Current contribution to net profit from investments EURm_ Strategic investments provide a significant contribution to EVN s profit - RAG and VERBUND are the main contributors - Income from RAG increased by 36% from EUR 44.3m in 2009/10 to EUR 60.4m in 2010/11 - Contribution from VERBUND decreased due to lower dividend payment in 2010/ Contribution from Others decreased due to impairment for the hydropower project Ashta (EUR 21.3m) /09 09/10 10/11 RAG BEWAG, BEGAS VERBUND Others

18 EVN at a glance 18 5 RAG Rohölaufsuchungs AG 1) Shareholder structure Revenue breakdown by segments EVN 50% EBITDA, EBIT and Net profit EURm ,0 E.ON Ruhrgas E&P GmbH 30% Steirische Gas- Wärme GmbH Salzburg 10% AG 10% 79, , ,7 EBIT EBITDA Net profit EURm % 1% 18% 22% 23% 31% 54% 50% Other revenues Oil sales & stockpiling of CER Gas storage Gas sales 1) 1) Growth in of 51.6% in gas storage business from EUR 76m to EUR 116n based in substantial increase of capacities by start of Haidach and 7fields (now total capacity volume of about 5bn m³) 2) CER = Compulsory Emergency Reserves

19 EVN at a glance 19 5 RAG Rohöl-Aufsuchungs AG 1) Production statistics 2011 Gas production million m³ Gas sales 2) million m³ Gas reserves million m³ 4,300 Oil production t 124,190 Oil reserves t 877,000 Oil tank storage capacity t 260,000 Total storage capacity Working gas volume million m³ 5,001 1) Source: RAG 2) Sales of produced, swapped and traded gas Core areas of business - Oil and natural gas E&P - Gas storage Concessions - Austria (5,414 km²) - Germany (3,136 km²) - Hungary (7,022 km²) - Poland (2,951 km²) Storage facilities (Salzburg, Upper Austria) - Haidach (JV with Gazprom and Wingas; 2,656 million m³) - Aigelsbrunn (100 million m³) - Puchkirchen (1,080 million m³) - 7Fields (JV with E.ON; 1,165 million m³)

20 EVN at a glance 20 6 Strengthening of liquidity position Capital increase of EVN AG by 10% to EUR 330m in October/November Net proceeds of EUR 175.5m from capital increase Issuance of a corporate bond in October EUR 300m - Replacement of existing corporate bond - Tenor: 10.5 years, Coupon: 4.25% Issuance of two private placements in March EUR 100m and EUR 25m - Tenor: 20 years, Coupon: 4.125% Refinancing syndicated revolving credit facility of EUR 500m in June 2012 Financial flexibility through committed credit lines of EUR 175m (as per June 30 th, 2012)

21 EVN at a glance 21 6 Solid capital structure and rating supports EURm_ , ,2 48% 50% 1.739,3 56% 09/10 10/11 Q /12 Net financial debt Gearing 100% 80% 60% 40% 20% 0% Gearing (%) Increase in net debt and gearing ratio due to ongoing investments in Austria and SEE Net debt can be easily covered by financial assets available for sale Financial policy going forward based on selected key ratios (on an unadjusted basis): - Equity ratio >40% ( : 46.2%) - Net debt coverage (FFO) 23% ( : 38.2%) - Interest cover (FFO) 5x ( : 7.6x) - EVN intends to increase its dividend payout ratio up to 40% mid-term and to above 40% longerterm Rating S&P: BBB+ / stable Moody s: A3 / stable EVN aims at preserving a competitive investment grade credit rating Dividend per share EUR 0,5 0, ,3 0,2 0,1 33.9% 34.7% 38.5% 0,0 08/09 09/10 10/11 100% 80% 60% 40% 20% 0% Payout ratio Dividend per share Payout ratio

22 EVN at a glance 22 6 Debt maturity profile EURm , , ,0 550, , /12 12/13 13/14 14/15 >2015 Bank debt Bonds Issue of a new corporate bond - EUR 300.0m (10.5 ys; coupon 4.25%) - Redemption of corporate bond (EUR 257.4m) Issue of private placements - EUR 125.0m (20.0 ys; coupon 4.125%) Refinancing of syndicated loan - EUR 500.0m (5 ys) Committed bilateral credit lines of EUR 175.0m Share of fixed interest debt: 76.0% Average financing costs: 4.2%

23 EVN at a glance 23 Development of electricity and primary energy prices 90 EUR/MWh forward electricity (base) crude oil gas procurement coal Slightly decrease in electricity and coal prices Increase of gas prices Average price in euros for crude oil (Brent) at the level of the peak in 2008

24 EVN at a glance 24 Outlook 2011/12 Assumptions - Stable end customers business development - Negative spreads between primary energy and electricity prices - Stable order book in Environmental Services segment and no negative impact due to economic downturn EVN s expectations - Operating results can match prior-year level - Financial results above previous year s level - Group net profit comparable to prior-year level EVN s ambitions - Competitive investment grade credit rating Key ratios (on an adjusted basis): Equity ratio: >40% Net debt coverage (FFO): >23% Interest Cover (FFO): >5x - Capex discipline - Cash contribution from South Eastern Europe and EVN s investments - Attractive dividend policy

25 EVN at a glance 25 Financial figures EURm Q / / / / /08 Revenue 2, , , , ,397.0 EBITDA Group net profit Net cash flow from operating activities Investments 1) Balance sheet total 6, , , , ,636.3 Equity 3, , , , ,208.5 Equity ratio 45.3% 46.2% 44.9% 46.7% 48.3% Net debt 1, , , , ,131.3 Gearing 55.7% 49.7% 48.2% 44.1% 35.3% 1) In intangible assets and property, plant and equipment

26 26 Agenda EVN at a glance Investments and projects Financial performance Q /12 Financial performance 2010/11

27 Investments and projects 27 Investments Q /12 1) EURm_ ,3 78,6 9,3 79,1 40, ,1 15,6 69,3 9,0 74,1 13,8 Q /11 Q /12 Strategic Investments and Other Business Environmental Services Energy Supply South East Europe Energy Trade and Supply Network Infrastructure Austria Generation Investments down 25.0% Key investments - Generation: Wind parks in Lower Austria - Network Infrastructure Austria: Construction of Westschiene - Energy Trade and Supply: Expansion of heat networks and biomass capacities in Lower Austria - Energy Supply South East Europe: + Cogeneration plant in Plovdiv, Bulgaria + Expansion of the network infrastructure and replacement of metres in SEE + Investments in natural gas network in Croatia - Environmental Services: Cogeneration plant in Ljuberzy, Moscow 1) In intangible assets and property, plant and equipment

28 Investments and projects 28 Strategy to double wind capacity by 2015 > EVN s focus on Lower Austria > 190 MW installed capacities > Strong negotiating power vis-à-vis turbine suppliers Austrian Green Electricity Act > Wind park IRR (after tax) 7% 8% Legal framework until 2011 Amendment 2012 Generate stable, regulated cash flows on a long-term basis Eastern part of Lower Austria = Attractive on-shore wind region > Off-take obligation for new plants at fixed feed-in tariffs (13 years) > Eligibility of new renewables projects is subject to annual feed-in tariff constraints Annual constraints too low in the past, creating substantial backlog of ready-to-build projects in Austria > Legal goal to increase Austrian wind generation capacities from 1,011 MW to 2,000 MW (2020) > Increase of annual feed-in tariff constraints to reduce backlog and achieve capacity growth > Attractive wind feed-in tariffs 2012: EUR 95/MWh > One of the most attractive regions in Europe (due to strong wind conditions in the plain Danube and Pannonian area) > Lower Austrian Renewables Roadmap 2030 Increase wind generation capacities in Lower Austria from 550 MW to 1,900 MW (2020) and 3,200 MW (2030)

29 Investments and projects 29 EVN s windpower plants 12 windparks - Gänserndorf west (5 wind turbines) - Gänserndorf north (5 wind turbines) - Neusiedl / Zaya (5 wind turbines) - Prellenkirchen (8 wind turbines) - Japons (7 wind turbines) - Kettlasbrunn (20 wind turbines) - Obritzberg (13 wind turbines) - Markgrafneusiedl (10 wind turbines) - Tattendorf (8 wind turbines) - Pöttelsdorf (4 wind turbines) - Glinzendorf (9 wind turbines) 1) - Kavarna, Bulgaria (8 wind turbines) 1) 50:50 JV with Wien Energie AG Total capacity: 190 MW - As of September 30 th, 2011: 138 MW Electricity for more than 100,000 households

30 Investments and projects 30 Hydropower plants in Lower Austria River Inn - 13% stake in VERBUND-Innkraftwerke GmbH - Capacity: 41 MW (EVN stake) Schütt - Capacity: 2 MW - 2,700 households - Investments: EUR 9.5m Schaldorf - Capacity: 1 MW - 1,500 households - Investments: EUR 6m Total capacity of 278 MW 1) 70 hydropower plants in total Kleinwasserkraftwerk Schaldorf VERBUND Electricity for some 165,000 households 1) Including purchasing rights from hydropower plants

31 Investments and projects 31 Hydropower plant projects in Albania Project Ashta on the Drin River - 50:50 JV with VERBUND - Capacity: 50 MW - Generation: ~240 GWh p.a. - Supply of 100,000 households - Concession period: 35 years - Start of operations: 2012/13 - Start of trail operations of the first part in June 2012 (25 MW) Project Devoll - 50:50 JV with Statkraft (Norway) - 3 hydropower plants - Capacity: 275 MW - Generation: ~800 GWh p.a. - Concession period: min. 35 years - Start of operations: 2016/19 Project Ashta on the Drin River

32 Investments and projects 32 Hydropower plant project in Bulgaria Gorna Arda - 70% EVN stake, 30% NEK - River Arda, South Eastern Bulgaria - Total capacity: 120 MW 170 MW (depending on particular expansion stage) - Generation: ~350 GWh p.a. - Total investments: up to EUR 500m - Start of operations: 2018/19

33 Investments and projects 33 Biomass plants in Lower Austria Expansion of biomass capacity - Hagenbrunn (Investments: EUR 3.6m) - Langenlois (Investments: EUR 2.3m) - Hollabrunn, Waidhofen, Aschbach (acquisitions) Biomass plants under construction - Steyr (Investments: EUR 36.0m) - Amstetten (Investments: EUR 0.7m) - Markt Piesting (Investments: EUR 0.6m) Total capacity: - More than 60 plants - Thermal capacity: 178 MW million m³ of wood chips - Electricity and heat supply for more than 20,000 households

34 Investments and projects 34 Photovoltaic plants in Bulgaria Blatets - Start of operations: May Total capacity: kwp - Investments: EUR 3m - CO 2 savings: 280 t p.a. Trastikovo - Start of operations: July EVN s largest photovoltaic park - ~25,000 modules - Total capacity: 1,995 kwp - Generation: ~2.4 GWh p.a. - Investments: EUR 5m - CO 2 savings: 2,000 t p.a.

35 Investments and projects 35 Cogeneration plant in Bulgaria Plovdiv - Generation of electricity and heat - Start of construction: 2009/10 - Start of operations: December Capacity: Electricity: 50 MW Heat: 54 MW - Investments: EUR 50m - Supply of ~33,600 households - Most modern cogeneration plant in the Balkans - Increasing the security of energy supplies

36 Investments and projects 36 Gas supply in Lower Austria Südschiene - Gänserndorf-Semmering - Completion: July Gas pipeline: ~120 km - Investments: EUR 114m Westschiene - Auersthal-Amstetten - Start of construction: June Completion: ~September Gas pipeline: 143 km - Investments: EUR 150m

37 Investments and projects 37 Gas supply in Croatia Concessions to build and operate a natural gas distribution network on the Dalmatian coast - Three counties: Zadar, Split and Sibenik - Concession period: 30 years - Total pipeline length: 1,450 km - ~130,000 households - Start of construction: April 2011 (Zadar) - First household customers connected to EVN gas grid on June 1 st, 2012

38 Investments and projects 38 Waste incineration plants Dürnrohr, Lower Austria - Line 3 - Start of operation: early Total capacity: 500,000 t p.a. of household residual waste, bulky waste, industrial and commercial waste materials treated - State-of-the-art and largest waste incineration plant in Europe - Ecologically best possible waste treatment and transportation of waste and residual waste by train Moscow - Total capacity: 360,000 t p.a. - Investments: EUR 175m - Start of operation: EVN operation: 13 years

39 Investments and projects 39 Waste incineration plant project Moscow - December 2009: Acceptance of a tender to construct another waste treatment plant in Moscow - Total capacity: 700,000 t p.a. - Investments: EUR 575m - Start of operations: 2014

40 40 Agenda EVN at a glance Investments and projects Financial performance Q /12 Financial performance 2010/11

41 Financial performance Q /12 41 Business development EURm 2011/12 Q. 1 3 Change in % Revenue 2, EBITDA EBIT Financial results Group net profit Net cash flow from operating activities EUR Earnings per share Weather-related revenue development Stable EBITDA - Operating expenses up 4.0% Higher EBIT - Impairment loss of EUR 22.2m vs. EUR 17.7m in the prior-year period Positive development of financial results - Higher income from investments in equity accounted investees Weather-related decrease of net CF from operating results

42 Financial performance Q /12 42 EBITDA development by segments Generation Energy Trade and Supply Network Infrastructure Austria Energy Supply South East Europe Environmental Services EURm ,0% 51,9 Q /10 27,6% 18,8 Q /11 45,0% 45,8 Q /12 71,6 7,3% Q /10 106,0 74,0 11,1% 8,0% Q /11 Q /12 171,8 182,4 173,7 44,2% 46,3% 43,3% Q /10 Q /11 Q /12 51,4 49,6 76,8 18,4% 20,0% 7,5% 7,8% 10,4% ,8 44,9 36,3 22,2 34,2 14,6% Q /10 Q /11 Q /12 Q /10 Q /11 Q /12 70% 60% 50% 40% 30% 20% 10% 0% Margin (%) EBITDA Profit before tax EBITDA Margin Generation: power request on the part of the German Federal Network Agency; revision in natural gas price between Gazprom and EconGas; new wind park capacities, higher hydro and wind power production coefficients Energy Supply SEE: weather-related sales volumes increase, higher end customer prices Environmental Services: slightly lower operating expenses

43 Financial performance Q /12 43 Generation Electricity generation volumes 2011/12 Q. 1 3 Change in % Reduced use of EVN s own thermal power stations (GWh) Total 1, thermal energy sources renewable energy sources Financial performance EURm Revenue EBITDA 45.8 EBIT Negative spark spreads Revenue increase - Power request by the German Federal Network Agency - Revision in natural gas prices between Gazprom and EconGas - New wind park capacities - Higher wind and hydropower production coefficients EBIT increase despite - Impairment losses - Biomass pilot plant EUR 8.0m in Dürnrohr - Wind park Kavarna EUR 9.8m in Bulgaria

44 Financial performance Q /12 44 Energy Trade and Supply End customer price adjustments 1) Natural gas (4/1/2011) +8.9% (10/1/2011) +3.6% Electricity (1/1/2012) 1.7% Sales volumes to end customers (GWh) 2011/12 Q. 1 3 Change in % Electricity 5, Natural gas 5, Heat 1, Financial performance EURm Revenue EBITDA EBIT Diverse sales volumes development - Electricity: increase due to business extension of EAA outside of Lower Austria - Natural gas: decrease due to reduced use of EVN s own thermal power plants and higher temperatures - Heat: increase due to large customers and higher sale to the district heating transport pipeline in St. Pölten Revenue decrease - Decrease of end customer price for electricity and adjustments in natural gas prices EBITDA decrease - Higher procurement costs for electricity - Provision for impending losses related to power plant project Duisburg-Walsum in Q2 2011/12 1) Average, household sector (source: EVN)

45 Financial performance Q /12 45 Network Infrastructure Austria Tariffs adjustments 1) Electricity (1/1/2012) Natural gas (1/1/2012) 1.9% Network distribution volumes (GWh) 2011/12 Q. 1 3 Change in % Electricity 5, Natural gas 2) 13, Diverse distribution sales volumes - Electricity: at prior-year level - Natural gas: drop due to reduced use of EVN s own thermal power plants and higher temperature Adjustment of network tariffs Decrease of EBITDA and EBIT - Higher procurement costs - Higher maintenance and repair costs Financial performance EURm Revenue EBITDA EBIT ) Average, according to the regulator in Austria (E-Control) 2) Including network sales to EVN s power stations

46 Financial performance Q /12 46 Energy Supply South East Europe Electricity price adjustments 1) Bulgaria (7/1/2010) electricity +2.0% (7/1/2011) electricity +1.9% (4/1/2011) heat +6.8% Macedonia (3/1/2011) +4.9% 2) (1/1/2012) +4.8% 2) Network distribution volumes (GWh) Electricity 3) Heat Financial performance EURm Revenue EBITDA EBIT 28.7 Electricity generation increased by 90.6% Temperature-related sales volumes increase - BG: heating degree +16.5%p - MK: heating degree +19.9%p Revenue increase - Weather-related hike of sales volumes - Electricity and heat price adjustments Increase of EBIT from EUR 12.5m despite - Higher prices for procured energy - Increased write-offs of receivables 1) Average, household sector, according to the regulators in Bulgaria (SEWRC) and Macedonia (ERC) 2) EVN Macedonia 3) In Bulgaria and Macedonia energy sales volumes fairly equal present network distribution volumes

47 Financial performance Q /12 47 Environmental Services Financial performance EURm 2011/12 Q. 1 3 Change in % Revenue EBITDA EBIT Financial results Profit before income tax Stable revenue - International project business: stable contribution - Domestic water supply business: increased revenue - Waste incineration: lower contribution Financial results down - Decreasing interest income related to the ongoing redemption of projects during the operational phase Market entry - Wastewater treatment plant in Prague (CZ) (turn-key project) - Drinking water treatment plant in Serbia (BOOT project)

48 Financial performance Q /12 48 Financial results Financial results increased Q / ,4 82,3 25,1 Higher income from investments in equity accounted investees Q /11-2,9-30,2 69,4 25,5 Lower interest results - Higher interest expenses Q / ,2 41,0 53,8 - Higher net debt - Slightly higher interest rates EURm_ Lower interest income Income from investments in equity accounted investees Gain from other investments Total interest results Total other financial results

49 Financial performance Q /12 49 Solid capital structure and rating supports % 6.731, , , % ,3 100% EURm ,9% 46,2% 45,3% 3.025, , ,4 60% 40% 20% Equity ratio (%) EURm_ , ,2 48,2% 49,7% 55,7% 80% 60% 40% 20% Gearing (%) 0 FY 09/10 FY 10/11 Q /12 0% 0 FY 09/10 FY 10/11 Q /12 0% Total assets Equity Equity ratio Net financial debt Gearing

50 Financial performance Q /12 50 Cash flow EURm 2011/12 Q. 1 3 Change in % Gross cash flow Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities 25.6 Net change in cash and cash items Q /11 Q /12 EURm 184,9 246,5 426,6 445, Higher gross CF - Higher profit before tax - Higher non-cash earnings components Decrease of net CF from operating activities - Stronger seasonal effect in working capital Change of net CF from investing activities - Lower investments in intangible assets and property, plant and equipment - Lower capital payment for investments in equity accounted investees - Acquisition of additional stake in EVN s Bulgarian subsidiaries - Sales of current investments in securities Decrease of net CF from financing activities - Capital increase in the prior-year Gross cash flow Investments in intangible assets, property, plant and equipment

51 51 Agenda EVN at a glance Investments and projects Financial performance Q /12 Financial performance 2010/11

52 Financial performance 2010/11 52 Group results 2010/11 EURm 2010/11 Change in % Revenue 2, EBITDA EBIT Financial results Group net profit Net cash flow from operating activities EUR Earnings per share Dividend per share Revenue drop in the energy business offset by positive development in Environmental Services segment Higher EBIT due to one-offs Negative development in financial results - Lower dividend paid by VERBUND - Decline in interest and other financial results Strong cash flow generation Decrease of earnings per share - Lower Group net profit - Increased number of outstanding shares following the capital increase Higher dividend payout ratio

53 Financial performance 2010/11 53 Asset impairments 2010/11 Impairment tests, EURm 2010/ /10 1. Gas-fired power plants Procurement rights at hydropower plants 3. TEZ Plovdiv / Gas power plant side in Plovdiv Others Effects in operating results 5. Hydropower project Ashta Effects in financial results Assumptions used at impairment tests: - High gas sourcing costs from longterm supply contracts and the elimination of free CO 2 certificates as of Hydropower plants are gaining importance - Ongoing adverse regulation in the Bulgarian heating business - Delay in liberalising the Bulgarian market and postponed plans to construct a gas-fired power plant - Lower expectations on proceeds from the sale of Certified Emission Reductions

54 Financial performance 2010/11 54 EBITDA development by segments 220 Generation Energy Trade and Supply Energy Supply South East Europe Network Infrastructure Austria Environmental Services 60% % 44.3% % % 39.1% 39.8% 40% EURm_ % % % % % 8.0% 10.4% 30% 17.0% 18.3% 19.9% 20% % Margin (%) 0 08/09 09/10 10/11 08/09 09/10 10/11 08/09 09/10 10/11 08/09 09/10 10/11 08/09 09/10 10/11 0% EBITDA PBT EBITDA Margin Generation: falling spreads between electricity and primary energy prices Energy Trade and Supply: positiv economic development and one-off effects due to the use of provisions from previous year for impending losses Environmental Services: higher or first-time earnings contribution of new projects

55 Financial performance 2010/11 55 Generation Electricity generation volumes (GWh) 2010/11 Change in % Total 3, thereof thermal energy sources 1, thereof renewable energy sources 1, EURm Revenue EBITDA EBIT 3.6 Decrease in energy generation volumes - Lower power generating volumes at EVN s own thermal power stations - Lower water flow conditions Revenue and EBIT drop - Declining spreads between electricity and primary energy prices in option value of power stations - Impairments: EUR 38.4m Theiß and Korneuburg EUR +31.2m revaluation of purchase rights at hydropower plant Freudenau

56 Financial performance 2010/11 56 Energy Trade and Supply End customer price adjustments 1) Gas (12/1/2009) 7.0% (4/1/2011) +8.9% Sales volumes to end customers (GWh) 2010/11 Change in % Electricity 7, Natural gas 6, Heat 1, EURm Revenue 1, EBITDA EBIT ) Average, household sector (EVN Source) Higher sales volumes to end customers - Electricity: economic upswing and expansion of EnergieAllianz outside Austria - Heat: higher sales of steam and heat to key accounts Decrease in revenue despite higher sales volumes - Adjustment in gas prices for end customers - Decrease in marketing proceeds from power plants EBITDA and EBIT increase - Lower primary energy costs due to: - One-off effects due to usage of provisions for impending losses - Reduced purchasing volumes because of reduced operation of own power plants

57 Financial performance 2010/11 57 Energy Supply South East Europe Electricity price adjustments 1) Bulgaria (7/1/2010) +2.0% (7/1/2011) +1.9% Macedonia (1/1/2010) +5.1% (3/1/2011) +4.9% Network distribution volumes (GWh) 2010/11 Change in % Electricity 13, Heat EURm Revenue EBITDA EBIT ) Average, household sector, according to the regulators in Bulgaria (SEWRC) and Macedonia (ERC) Sales volumes development - Higher electricity sales volumes in Bulgaria and Macedonia Revenue decrease - Bulgaria: mainly due to changed reporting of tariff components (effect: EUR 46.9m) - Macedonia: higher sales volumes and positive price effects in 2010 and 2011 Decrease in operating expenses - Changed reporting of procurement costs in Bulgaria and usage of provisions for impending losses in Bulgaria - Lower personnel expenses and writeoffs of receivables in Macedonia EBIT improvement despite - Impairment of goodwill at TEZ Plovdiv and impairment of property, plant and equipment of the Plovdiv power plant site totaling EUR 17.7m

58 Financial performance 2010/11 58 Network Infrastructure Austria Tariffs adjustments 1) Electricity (1/1/2011) +1.0% Gas (1/1/2011) +10.6% Network distribution volumes (GWh) 2010/11 Change in % Electricity 7, Natural gas 2) 16, EURm Revenue EBITDA EBIT Diverse network distribution volumes - Electricity distribution volumes: increase due to economic upswing in the first half-year 2010/11 - Gas distribution volumes: decrease despite cold weather due to lower sales to EVN s own thermal power stations Decrease of EBITDA and EBIT - Higher cost of materials - Higher depreciation 1) Including network sales to EVN s power stations 2) Average, according to the regulator in Austria, E-Control

59 Financial performance 2010/11 59 Environmental Services EURm 2010/11 Change in % Revenue EBITDA EBIT Profit before income tax EUR bn Contract value 1) 1.3 Revenue increase due to higher or first-time full year earnings contribution of projects - Waste incineration plant and sodium hypochlorite plant in Moscow Strong EBITDA and EBIT increase New business - Concession for wastewater treatment in Slovenia 1) As of September 30 th, 2011

60 Financial performance 2010/11 60 Financial results 2010/ /09 Financial results dropped by 50% Earnings contribution from investments fell Higher results from investments in equity accounted investees: 2009/ RAG: up from EUR 44.3m to EUR 60.4m 2010/11 BEWAG/BEGAS: up from EUR 3.1m to EUR 9.4m Impairment for hydropower project Ashta (EUR 21.3m) EURm_ Gain from other investments Income from investments in equity accounted investees Total interest results Total other financial results - Lower gain from other investments VERBUND AG: drop by EUR 28.7m to EUR 22.1m Drop in total interest results - Higher level of financial liabilities - Higher interest rates

61 Financial performance 2010/11 61 Balance sheet EURm 2010/11 Change in % 1) Total assets 6, Equity 3, Equity ratio (in %) p Net debt 1, Gearing (in %) p Increase of total assets - Increase in equity accounted investees 13%-stake VERBUND-Innkraftwerke Contribution to capital increase of VERBUND AG Increase in net debt - Slightly higher gearing but within EVN framework to maintain competitive investment grade 88.5% 11.5% Non-current assets Current assets 46.2% 39.5% 14.3% Equity Non-current liabilities Current liabilities 1) Compared to September 30 th, 2010

62 Financial performance 2010/11 62 Cash flow 09/10 10/11 EURm 2010/11 Change in % Gross cash flow Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net change in cash and cash items EURm Gross cash flow Investments in property, plant and equipment and intangible assets Higher gross CF - Lower profit before income tax - Higher depreciation and amortisation - Lower non-cash income from investments in equity accounted investees - Lower non-current provisions Increase of net CF from operating activities - Decrease of current balance sheet items - Higher net cash outflow from investing activities and liabilities Decrease of net CF from investing activities - Decrease of current securities - Higher capital payment for investments in equity accounted investees - Increase in lease receivables in the Environmental Services segment Decrease of net CF from financing activities - Redemption of liabilities - Despite net proceeds of capital increase

63 Financial performance 2010/11 63 Investments 2010/11 1) EURm_ /09 09/10 10/11 Environmental Services Energy Supply South East Europe Energy Trade and Supply Network Infrastructure Austria Generation 1) In intangible assets and property, plant and equipment Investments up 5.5% Key investments - Generation: Wind power and small-scale hydro power projects in Lower Austria - Network Infrastructure Austria: Construction of the natural gas transport pipelines Süd- and Westschiene - Energy Trade and Supply: Expansion of heating networks - Energy Supply South East Europe: Expansion of the network infrastructure and replacement of meters Construction of the new cogeneration plant in Plovdiv - Environmental Services: Combined cycle heat and power cogeneration plant in Moscow

64 64 Additional information Stefan Szyszkowitz CFO Phone: Fax: Investor information on the web Klára Székffy Head of Investor Relations Phone: Fax: EVN AG Headquarters EVN Platz 2344 Maria Enzersdorf

65 65 Disclaimer Certain statements made in this presentation may constitute Forward-Looking Statements within the meaning of the U.S. federal securities law. Forward-looking information is subject to various known and unknown risks and uncertainties. These include statements concerning our expectations and other statements that are not historical facts. The Company believes any such statements are based on reasonable assumptions and reflect the judgement of EVN s management based on factors currently known by it. No assurance can be given that these forward-looking statements will prove accurate and correct, or that anticipated, projected future results will be achieved. For additional information regarding risks, investors are referred to EVN s latest Annual report.