EVN Company presentation. February 2014

Transcription

1 EVN Company presentation February 2014

2 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 2

3 EVN profile Leading integrated energy and environmental services company serving customers in Lower Austria, SEE and CEE Shareholder structure (as of ) Key activities Energy generation (renewable, thermal) Regulated grid (electricity, natural gas) Energy supply Environmental services EVN at a glance 3

4 EVN at a glance Energy business 6 countries 1) Albania Austria Bulgaria Croatia 2) Germany Macedonia 1) EVN share: 50% 2) EVN share: 49% EVN at a glance 4

5 EVN at a glance Environmental services business 18 countries Austria 1) Bahrain Croatia Cyprus Czech Republic Denmark Estonia Germany Lithuania Latvia Montenegro Poland Romania Russia 2) Serbia Slovakia Slovenia Turkey 1) Thermal waste incineration plant, drinking water supply 2) Thermal waste incineration plant EVN at a glance 5

6 EVN at a glance Strategic investments % 13.0% 73.63% Verbund-Innkraftwerke GmbH #1 electricity producer in Austria with 8.6 GW installed capacity (encompasses ~1% of shares held by WEEV) 13 run-of-river plants with 312 MW installed capacity (EVN stake: 41 MW) #1 green energy producer in Austria and local gas distributor 50.03% 16.51% #2 oil and gas producer in Austria, one of the largest gas storage operators in Central Europe with 5bn m³ working gas capacity Distributor and business-to-business natural gas supplier in Austria EVN at a glance 6

7 EVN at a glance Lower Austria EVN s prosperous domestic market Province of Lower Austria at a glance: Area: 19,186 km 2 (~ Half size of Switzerland) Population (2012) 1,617,455 Economically active population, years (2012): 73.5% (Austria: 72.5%) GDP per capita (2010): EUR 28,200 (Austria: EUR 31,100; Germany: EUR 29,000) Sources: Statistics Austria; Eurostat EVN at a glance 7

8 EVN at a glance Bulgaria EVN s focus in SEE Bulgaria at a glance: Area: 111,000 km 2 EVN's supply area: ~42,000 km 2 (~ Size of Switzerland) Population (2011) 7,364,570 Economically active population, years (2011) 65.3% (Austria: 72.5%) GDP per capita (2010) EUR 10,700 (Austria: EUR 31,100; Germany: EUR 29,000) Sources: Eurostat, Bulgarian National Statistical Institute EVN at a glance 8

9 EVN at a glance Macedonia EVN s focus in SEE Macedonia at a glance: Area: 25,713 km 2 EVN's supply area: 25,713 km 2 Population (2011) 2,057,284 Economically active population, years (2011): 63.9% (Austria: 72.5%) GDP per capita (2010) EUR 8,700 (Austria: EUR 31,100; Germany: EUR 29,000) Sources: Eurostat, Macedonian State Statistical Office EVN at a glance 9

10 EVN at a glance Contribution by business segments Revenue split 1) EBITDA split 1)2) 1) Pre consolidation 2) Figures have been adjusted due to IAS 19 EVN at a glance 10

11 EVN at a glance Financial figures 11 EURm y-o-y 2012/13 in % 2011/12 Revenue 2, ,846.5 EBITDA 1) EBIT 1) Group net profit Net cash flow from operating activities Investments 2) Balance sheet total 7, ,863.2 Equity 3, ,013.7 Equity ratio 43.2% % Net debt 1, ,703.7 Gearing 50.9% % 1) Figure for 2011/12 was adjusted due to IAS 19 2) In intangible assets and property, plant and equipment EVN at a glance 11

12 The EVN share Basic information Share capital EUR 330,000,000 Denomination ISIN Tickers 179,878,402 shares AT EVNV.VI (Reuters); EVN AV (Bloomberg); EVN (Dow Jones); EVNVY (ADR) EVN at a glance 12

13 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 13

14 Market environment Distorted energy markets Market design under discussion Increasing share of volatile renewable production supported by subsidised feed in tariffs Deterioration of wholesale electricity prices Uncertainty in economic environment Weak economic growth Political instability Especially in South Eastern Europe Market environment and strategy 14

15 Energy price developments Source: EVN; December 2013 Market environment and strategy 15

16 EVN at a glance Regulated business in Austria 16 Network Electricity Gas Comments Regulatory authority E-Control GmbH E-Control GmbH Start of the regulatory period Next regulatory adjustment Adjustment of WACC and productivity factors Duration of the regulatory period 5 years 5 years Regulatory method Revenue caps Revenue caps RAB (EURm) Annually adjusted Annually adjusted Annual investments are added to the RAB in the following year WACC (pre-tax, nominal) 6.42% 6.42% Set for length of regulatory period General productivity factor 1.25% 1.95% Electricity: 50% of the achieved productivity increases are passed on to end customers during the regulatory period Natural gas: Gains from cost reductions remain with the company during the regulatory period Company specific productivity factor 0.36% 0.00% Additional X factor is company specific Inflation Set annually Set annually Network operator price index consists of consumer (30%) and building price (40%) indices as well as wage increase index Market environment and strategy 16

17 EVN at a glance Regulated business in South Eastern Europe 17 Electricity Regulatory authority Bulgaria 1) (electricity) SEWRC (State Energy and Water Regulatory Commission) Bulgaria (heat) SEWRC (State Energy and Water Regulatory Commission) Macedonia (electricity) ERC (Energy Regulatory Commission) Start of the regulatory period Next regulatory adjustment Duration of the regulatory period 2 years 1 year 3 years Regulatory method 2) Revenue caps Revenue caps Revenue caps RAB (EURm) Annually adjusted Annually adjusted Annually adjusted WACC (pre-tax, nominal) 7.0% 7.6% 6.7% Recognised network losses 10.0% No 14.0% Productivity factor Yes Yes No Investment factor 3) No No Yes 1) Regulatory decision based on new energy law still pending. 2) The revenue caps comprise the recognised operating expenses, the amortisation and depreciation as well as the recognised return on the RAB. 3) Annual review and approval of company s investment plans by the regulatory authority. Source: Regulators in Bulgaria (SEWRC) and in Macedonia (ERC) Market environment and strategy 17

18 EVN s position within the value chain in SEE Public Provider Distribution End customers Public Provider EVN is obliged to source electricity from the public provider at regulated prices EVN operates the distribution network based on a RAB framework EVN sells electricity at regulated tariffs to end customers Price development in Bulgaria (EUR 1) /MWh) Price development in Macedonia (EUR 2) /MWh) Source: Regulators in Bulgaria (SEWRC) and in Macedonia (ERC) 1) Exchange rate Bulgaria: EUR/BGN ) Exchange rate Macedonia: EUR/MKD 61.5 Market environment and strategy 18

19 Tariff schemes 2013 for renewable energy sources Renewable energy source Austria Bulgaria Wind Tariff category Feed-in-tariffs Feed-in-tariffs Tariff (EUR-cent 1) /kwh) ~ Duration (in years) Installed capacity ) (MW) 1, Target value for installed capacity 2020 (MW) 2,578 1,440 Water Tariff category Feed-in-tariffs Feed-in-tariffs Tariff (EUR-cent 1) /kwh) ~ Duration (in years) Installed capacity ) (MW) 8,285 3,181 Target value for installed capacity 2020 (MW) 8,998 3,288 Photovoltaic Tariff category Feed-in-tariffs Feed-in-tariffs Tariff (EUR-cent 1) /kwh) ~ Duration (in years) Installed capacity ) (MW) Target value for installed capacity 2020 (MW) Sources: Investieren in Erneuerbare Energie 2013, Kommunalkredit; 503. Verordnung: Änderung der Ökostrom-Einspeisetarifverordnung 2012 (ÖSET-VO 2012) 1) In countries with tariffs in local currencies, tariffs have been converted with the exchange rate as of ) Installed capacity 2012 relates to estimates and assumptions due to available information as of Market environment and strategy 19

20 Strategy Virtue of integrated business model Focus on region of Lower Austria Provider of high quality services Electricity, gas, drinking water, wastewater treatment, thermal waste utilisation, cable TV, telecommunication Focus on stable business Regulated and non-regulated Provide consistent dividends Upside potential in Renewable energy production (mainly wind) South Eastern Europe Environmental services Market environment and strategy 20

21 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 21

22 EVN at a glance EVN s success drivers 22 SD 1 Solid home market SD 2 Strong market position SD 3 High share of earnings from regulated and stable business SD 4 SD 5 Upside potential in SEE Diversification through environmental business SD 6 Strategic investments SD 7 Solid capital structure EVN s success drivers 22

23 SD 1: Solid home market The Austrian electricity market continues to be stable 1) Increase in number of households (more senior citizens and single households) Increase in demand for transport sector, lightning, electronic data processing applications, heating and air conditioning Electricity consumption in in TWh Austria Germany 2012 (Jan-Oct) (Jan-Oct) Change (%) 0.47% 9.24% Source: European Network of Transmission System Operators for Electricity ( Outlook electricity consumption in Lower Austria 2) 1) Source: European Network of Transmission System Operators for Electricity ( 2) Source: EVN EVN s success drivers 23

24 SD 1: Characteristics of the Austrian utility market No nuclear power generation Public vote in the 1970s against nuclear power High share of hydropower assets 58% 1) of Austrian electricity generation sourced from hydropower In 2012, #1 in EU at share of renewable energy sources in electricity generation 2) (73% of Austrian electricity generation sourced from renewable energies) Further projects in execution 1) Source: Oesterreichs Energie ( data from ) Source: Energiestatus Österreich 2012, Bundesministerium für Wirtschaft, Familie und Jugend EVN s success drivers 24

25 SD 1: Characteristics of Austrian utility market Low customer churn rates 1) Electricity market 2012: Churn rate of Austrian end customers: 1.1% 5 largest suppliers hold more than 2/3 of market share Gas market 2012: Churn rate of Austrian end customers: 1.7% 5 largest suppliers hold 81% of market share Low political risk Transparent and predictable regulatory framework High proportion of public ownership (regulated by law) Public views utilities as basic public service No major foreign competition of suppliers Fairly small market size with prices at EU average 1) Source: E-Control: Marktbericht 2013, National report to EU Commission EVN s success drivers 25

26 SD 2: Strong market position in Austria 8.1 TWh 59 TWh 16 TWh 97 TWh Source market shares: E-Control 2012, annual report and company numbers Source churn rates: E-Control, market statistics consumer attitude/churn rates electricity and gas according to network areas EVN s success drivers 26

27 SD 2: Activities in Germany 18.0 TWh 16.8 TWh EVN is 45% shareholder in EnergieAllianzAustria ~37,000 industrial and business customers (electricity and gas) Distribution channels: Direct sales (branches and offices in Germany) Sales partners of EEA GmbH EVN s success drivers 27

28 SD 2: Decentralised renewable production portfolio #2 wind producer in Austria Strong, decentralised portfolio: Hydropower (Austria) 5 storage and 67 run-of-river hydropower plants Purchasing rights from hydropower plants along the Danube, Melk, Greifenstein and Freudenau Investment in hydropower plant Nussdorf and Verbund-Innkraftwerke Windpower 14 windparks Investments: EUR ~300m EVN s success drivers 28

29 SD 2: Wide-spread heat and biomass portfolio #1 in biomass heating in Austria 5% of Group revenues and 6% of EBITDA Biomass portfolio More than 60 biomass plants in Lower Austria Investments (in total): EUR 390m Contract duration: ø 15 years Heat extraction from EVN AG s thermal power plants Index pricing ensures business provides stable margins and is cash flow generative EVN s success drivers 29

30 SD 2: Drinking water supply #1 drinking water supplier in Lower Austria (50 years of experience) 1% of Group revenue and 3% of Group EBITDA Operation of 36 local drinking water supply networks More than 500,000 customers thereof 83,500 directly supplied EVN s success drivers 30

31 SD 3: High share of earnings from regulated and stable business Majority of EBITDA (86%) derives from regulated or stable earnings Regulated business Grid in Austria Grid, supply and heating in SEE Unregulated business Energy trade and supply International environmental projects Stable business Cable TV and telecommunication (5.5%) Waste incineration in Lower Austria (6.3%) Water supply business in Lower Austria (2.9%) Heating business in Lower Austria (6.3%) EVN s success drivers 31

32 EVN at a glance SD 3: Geographic split of revenues and EBITDA 32 Geographical revenue split Geographical EBITDA split 1) 1) Figures for 2011/12 were adjusted due to IAS 19 EVN s success drivers 32

33 EVN at a glance SD 4: Upside potential from South Eastern European market development 33 Volume Price Efficiency Illustrative electricity sales volumes per customer 1) Electricity prices for households (EUR cent/kwh) 2) Improvement of grid efficiency 1) In %, basis: Lower Austria = 100% 2) Prices excl. VAT EVN s success drivers 33

34 SD 5: Diversification through environmental business Austrian business EVN s activities in Austria cover Drinking water supply Wastewater treatment Thermal waste incineration plant EVN owns facilities EVN holds concessions International project business EVN designs and constructs Drinking water plants Wastewater treatment plants Thermal waste incineration plants 100 turn-key and PPP projects in 18 countries since projects currently under construction Strong demand for infrastructure projects set to continue Total order volume of ~EUR 540m with attractive return potential (as of 30 September 2013) EVN s success drivers 34

35 SD 5: Project types of international environmental services business Scope of activities Contract length Turn-key project Design Construct/build Operate (optional) 1 3 years (designing and building) 5 15 years (operations) PPP project Design Construct/build Operate Structure financing Own part or all of equity years Capital intensity Low High Return characteristics Financing Market characteristics Design and build POC Operations recurring annual revenues None to EVN done by customer Low barrier to entry intensive competition driving margins down Design and build Percentage of completion (POC) Operations recurring annual revenues Capital charge payment (recurring or onetime payment) Non-recourse financing to EVN post construction period High barrier to entry due to necessary project management expertise and high capital demands for financing EVN s success drivers 35

36 EVN at a glance SD 6: Strategic investments 36 Significant contribution to EVN s net profit RAG and Verbund are the main contributors Income from RAG increased by 9% from EUR 73.5m in 2011/12 to EUR 80.1m in 2012/13 Contribution from Verbund above prioryear level EVN s success drivers 36

37 EVN at a glance SD 7: Solid capital structure 37 Stable equity ratio Decreasing net debt and gearing ratio Rating S&P: BBB+, stable (confirmed: ) Moody s: A3, stable (confirmed: ) EVN aims at preserving a competitive investment grade credit rating EVN s success drivers 37

38 EVN at a glance SD 7: Debt maturity profile 38 Liquidity reserves Syndicated loan of EUR 500m Committed bilateral credit lines of EUR 175.0m Long-term loan agreement with European Investment Bank EUR 150m, 25 years Financing of grid investments EVN s success drivers 38

39 EVN at a glance SD 7: Positive Cash Flow development 39 Net cash flow from operating activities increased by 28% y-o-y in 2012/13 EVN s success drivers 39

40 EVN at a glance SD 7: Financial policy and dividends 40 Financial policy going forward based on selected key ratios (unadjusted): Equity ratio > 40% ( : 43.2%) Net debt coverage (FFO) 30% ( : 44.2%) Interest cover (FFO) 5x ( : 8.2x) Dividend: EVN follows a stable dividend policy EVN s success drivers 40

41 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 41

42 Outlook On energy markets Persistent distortions Low wholesale prices Volatility in production On EVN Focus on stability of results and dividends Focus on core regions Focus on security of supply Upside from renewable energy production, SEE, environmental services 2013/14: Group net profit above 2012/13, but below recent years Outlook 42

43 Appendix 43

44 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 44

45 Investments and projects EVN s Management Board 45 Peter Layr, Spokesman of the Executive Board Born in Doctorate in Technical Science. Joined EVN in Member of the EVN Executive Board since October Named Spokesman of the EVN Executive Board in January His term of office expires on 30 September Stefan Szyszkowitz, Member of the Executive Board Born in 1964, Master of Law, Master of Business Administration. Joined EVN in Member of the Executive Board since January His term of office expires on 19 January VERBUND Management Board 45

46 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 46

47 EVN a fully integrated utility player Generation Electricity generation from thermal sources and renewable energies (Austria, Germany, Albania and Bulgaria) Energy Trade and Supply Procurement of electricity and primary energy sources (Austria and Germany) Trading and selling of electricity and natural gas to end customers and on wholesale markets (Austria and Germany) Heat generation and sales (Austria) Network Infrastructure Austria Operation of regional electricity and natural gas networks (Austria) Cable TV and telecommunications networks (Austria) Energy Supply South East Europe Operation of electricity networks and electricity sales (Bulgaria and Macedonia) Heat generation and heat sales (Bulgaria); Electricity production (Macedonia) Construction and operation of natural gas networks (Croatia) Energy trading within the whole region Environmental Services Drinking water supply, wastewater disposal, thermal waste incineration (Austria) Combined cycle heat and power co-generation plants International project business Description of segments 47

48 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 48

49 EURm EURm EVN at a glance Case Study: RAG Rohöl-Aufsuchungs AG 1) 49 Shareholder structure EVN 50.03% EBITDA, EBIT and Net profit E.ON Global Commodities SE 29.98% Steirische Gas- Wärme GmbH 10% Salzburg AG 10% EBIT EBITDA Net profit Revenue breakdown by segments % 22% 23% % 18% 31% 54% 50% % 14% 30% 55% Other revenues Oil sales & stockpiling of CER Gas storage Gas sales 1) Source: RAG, Annual report 2012 according to IFRS CER = Compulsory Emergency Reserves RAG 49

50 EVN at a glance Case Study: RAG Rohöl-Aufsuchungs AG 1) 50 Production statistics 2012 Gas production m m³ Gas sales 2) m m³ Gas reserves m m³ 3,800 Oil production t 117,024 Oil reserves t 900,000 Oil tank storage capacity t 260,000 Natural gas storage Capacity m m³ 5,001 Core areas of business Oil and natural gas E&P Natural gas storage Concessions Austria (5,414 km²) Germany (5,479 km²) Hungary (7,022 km²) Poland (2,951 km²) Romania (1,106 km²) Storage facilities (Salzburg, Upper Austria) Haidach (JV with Gazprom and Wingas; 2,656 m m³) Aigelsbrunn (100 m m³) Puchkirchen (1,080 m m³) 7Fields (1,165 m m³) 1) Source: RAG 2) Sales of produced, swapped and traded gas 50 RAG

51 Case Study: RAG reflection in EVN Group results EVN holds a 50.03% stake in RAG through its fully consolidated subsidiary RAG-Beteiligungs-Aktiengesellschaft 100% of RAG earnings are recognised as share of profit of equity accounted investees 49.97% of RAG earnings assigned to minority interest EVN contractually not entitled to exercise a controlling influence over RAG RAG 51

52 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 52

53 Investments and projects Investments 2012/13 1) 53 Key investments Network infrastructure Austria Construction of gas pipeline Westschiene Wind parks in Lower Austria Expansion of heat networks and biomass capacities in Lower Austria Expansion of the network infrastructure and replacement of metres in SEE Investments in natural gas network in Croatia 1) In intangible assets and property, plant and equipment; Pre consolidation Investments and projects 53

54 Power generation capacities of EVN power plants Generation capacities from renewable energy increased by 110 MW or 25.3% Generation capacities from thermal power increased by 52 MW or 3.7% Share of generation capacities from renewable energy at 27.0% Investments and projects 54

55 EVN at a glance On-going projects to increase generation output 55 Leads to a coverage ratio of ~30% Project Walsum Wind parks 1) Gorna Arda Fuel type Hard coal Wind Hydro Pro-rata investment (EURm) Expected COD Dec / ) 1) Includes Austrian wind parks. 2) Depending on date of construction decision. Investments and projects 55

56 EVN at a glance Growth perspective in renewable energy production 56 Coverage ratio Market entrance Bulgaria Market entrance Macedonia Increase coverage ratio in the mid-term to 30% on Group level Balanced integrated business model Generation mix Diversify generation portfolio Keep renewable generation at 50% Focus on wind in Austria Investments and projects 56

57 Coal-fired power plant in Duisburg-Walsum Status Commissioning after test phase in December 2013 Installed Capacity: 725 MW Duisburg-Walsum Investments and projects 57

58 Gas-fired power plants in Theiss and Korneuburg Reserve capacity for Southern Germany Reserve capacity: 785 MW over the next 3 winter half-years Supply upon request of Federal Network Agency of Germany ( Bundesnetzagentur ) Securing the sites Investments and projects 58

59 Investments and projects Hydropower plant project in Bulgaria 59 Gorna Arda 70% EVN stake, 30% NEK (National Electricity Company in Bulgaria) River Arda, South Eastern Bulgaria Total capacity: 120 MW Generation: ~350 GWh p.a. Total investments: up to EUR 500m Start of operations after 2020 (depending on date of construction decision) Investments and projects 59

60 Investments and projects Gas supply in Lower Austria 60 Lower Austria Westschiene Südschiene Gänserndorf-Semmering Completion: July 2011 Natural gas pipeline: ~120 km Investments: EUR 114m Südschiene Westschiene Auersthal-Amstetten Start of construction: June 2011 Completion: 2013/14 financial year Natural gas pipeline: 143 km Investments: EUR 150m Investments and projects 60

61 Investments and projects Gas supply in Croatia 61 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) Investments and projects 61

62 International environmental services projects Projects Wastewater treatment plant in Warsaw, Poland, started operations in March 2013 Wastewater treatment plant in Sentjernej, Slovenia, started operations in July 2013 Sludge treatment plant in Vilnius, Lithuania, started test operations 3 wastewater treatment plants in Romania under construction Contract for construction of wastewater treatment plant in Krakow, Poland, received Projects in Moscow delayed Investments and projects 62

63 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 63

64 Business development 2012/13 Key financials Operating results close to prior-year s level Group net profit down 41.2% due to negative effects in financial results Strong balance sheet supports constant dividend proposal of EUR 0.42 Increase in generation capacity Expansion in windpower in Lower Austria Stronger international hydropower footprint (Ashta, Macedonia) Walsum gets connected to the grid 785 MW reserve capacity for Southern Germany Arbitration proceedings in Bulgaria No major progress in environmental projects in Moscow Financial performance 2012/13 64

65 Key financials EURm 2012/13 +/ in % Revenue 2, EBITDA EBIT Financial results 38.1 Group net profit Net cash flow from operating activities Earnings per share EUR Revenue close to prior-year s level Smaller number of final invoices in international project business Slight year-on-year increase in energy business EBITDA and EBIT remain robust Lower cost of materials due to decline in project volume in international project business Lower procurement costs for energy Financial results dropped Negative earnings contribution from at equity accounted investees Financial performance 2012/13 65

66 Solid balance sheet structure Equity ratio 43.2% Increased current liabilities due to reclassification of bonds which will become due in 2013/14 Net debt decreased by EUR 141.4m to EUR 1,562.3m Gearing reduced to 50.9% Standard & Poor s and Moody s rating confirmed (BBB+, A3) with stable outlook Financial performance 2012/13 66

67 Financial results Financial results dropped 2012/13: EUR 38.1m; 2011/12: EUR 36.5m Significant reduction of income from investments in equity accounted investees EconGas: EUR 19.7m Devoll: EUR 27.6m WEEV: EUR 29.6m Shkodra (Ashta): EUR 20.4m Income from other investments slightly improved Stable interest results and other financial results Financial performance 2012/13 67

68 EBITDA development by segments Generation Energy Trade and Supply Network Infrastructure Austria Energy Supply South East Europe Environmental Services Generation: on-going downward movement of electricity market prices Energy Trade and Supply: temperature-related increase in sales volumes of natural gas and heat Network Infrastructure Austria: increase in electricity distribution volumes Energy Supply South East Europe: increase in tariffs, volume increase in electricity production Environmental Services: less project completions Financial performance 2012/13 68

69 Generation +/ Electricity generation volumes GWh 2012/13 in % Total 3, Renewable energy sources 1, Thermal energy sources 1, Financial performance EURm Revenue EBITDA EBIT Renewable energy sources led to higher generation volumes Start of operations of Ashta, Albania Higher procurement from Inn River Good water flows Decline in EBITDA and EBIT Lower revenue Continuing pressure on electricity prices Unfavourable wind conditions Lower option value of thermal power plants Drop in depreciation and amortisation Higher impairment losses last year Financial performance 2012/13 69

70 Energy Trade and Supply End customer price adjustment 1) Electricity % Sales volumes to +/ end customers GWh 2012/13 in % Electricity 7, Natural Gas 6, Heat 1, Financial performance EURm Revenue 1, EBITDA EBIT 37.1 Diverging development of sales volumes Lower sales volumes of electricity Temperature-related rise in sales volumes of natural gas and heat Higher EBITDA and EBIT Year-on-year decrease of revenue Lower prices for renewable energy On-going pressure on electricity prices Reduced volumes Lower operating expenses Drop in electricity purchasing volumes Decline in procurement costs 1) Average, household sector (source: EVN) Financial performance 2012/13 70

71 Network Infrastructure Austria Tariff structures 1) Electricity % Natural gas % Network distribution +/ volumes GWh 2012/13 in % Electricity 7, Natural gas 2) 15, Financial performance EURm Revenue EBITDA EBIT Different development of distribution volumes Electricity: temperature-related increase Natural gas: decline Reduction in industrial demand Lower use of gas-fired power plants Increase in EBITDA and EBIT Decrease in transmission network costs Increase in work in progress due to lower number of customer projects that had not been invoiced on balance sheet date 1) Average, according to the regulator in Austria (E-Control) 2) Including network sales to EVN s power stations Financial performance 2012/13 71

72 Energy Supply South East Europe End customer price adjustments 1) Bulgaria electricity % % % heat % % Macedonia electricity % % % Key energy business indicators GWh 2012/13 +/ in % Electricity generation volumes Network distribution volumes 2) 13, Heat sales volumes to end customers Financial performance EURm Revenue 1, EBITDA EBIT Rise in electricity generation volumes Takeover of operations at additional hydropower plants in Macedonia Full-year operations at co-generation plant in Plovdiv, Bulgaria Temperature-related decrease in sales volumes EBITDA and EBIT increase Higher revenue Price increases in Macedonia in 2012 Full-year operations at co-generation plant Increase in procurement costs due to additional costs related to renewables Higher other operating expenses Higher depreciation 1) Average, household sector, according to the regulators in Bulgaria (SEWRC) and Macedonia (ERC) 2) In Bulgaria and Macedonia energy sales volumes fairly equal present network distribution volumes Financial performance 2012/13 72

73 Environmental Services Financial performance EURm 2012/13 +/ in % Revenue EBITDA EBIT Financial results Profit before income tax EBITDA and EBIT decline Lower revenue Higher project completions in prior year Decrease in operating expenses in line with the development of the revenue Financial results Interest results slightly improved Business development Nine international projects currently in process Moscow: discussions about subsequent amendments of the structure of the projects Lower Austria: further activities to safeguard and improve drinking water supplies Financial performance 2012/13 73

74 Cash flow EURm 2012/13 +/ in % Gross CF Net CF from operating activities Net CF from investing activities Net CF from financing activities Net change in cash and cash equivalents 90.7 Increase of gross cash flow Non-cash effects from at equity investees Higher net cash flow from operating activities Lower year-on-year growth in working capital Drop of net cash flow from investing activities Acquisition of short-term securities Increase in net cash flow from financing activities Prior year affected by the purchase of additional stakes in EVN Bulgaria Dividend payment to EVN s shareholders Current share buyback programme Financial performance 2012/13 74

75 Agenda EVN at a glance Market environment and strategy EVN s success drivers Outlook Appendix Management Board Description of segments RAG Investments and projects Financial performance 2012/13 Contact details 75

76 Contact details Stefan Szyszkowitz CFO Phone: Fax: Investor information on the web Gerald Reidinger Head of Finance and Investor Relations Phone: Fax: EVN AG Headquarters EVN Platz 2344 Maria Enzersdorf 76

77 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. 77