EVN Company presentation · - Lower Austria and Germany - South Eastern Europe ... Solid capital...

EVNCompany presentationMay 2012

2

EVN at a glance

Investments and projects

Financial performance 2010/11

Financial performance Q. 1 2011/12

Agenda

3

Environmental

Services

14%

Energy Supply

SEE

18%

Energy Trade

and Supply

22%

Netw ork

Infrastructure

Austria

39%

Generation

7%Generation 3% Network

Infrastructure

Austria

16%

Energy Trade

and Supply 40%

Energy Supply

SEE

29%

Environmental

Services

12%

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)A–, negative (Standard & Poor’s)

Contribution by business segments

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

- 0.5 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

Revenues1) EBITDA1)

1) Pre consolidation adjustments

EUR 2,729.2m EUR 471.4m

EVN at a glance

EVN at a glance

4EVN at a glance

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 integrationEnvironmental services business: drinking water supply, wastewater treatment, waste incineration

- SEE:Electricity and heat distribution as well as gas operation (project)

- CEE: drinking water supply, wastewater treatment and waste incineration

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

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.

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


- 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

EVN at a glance

6

EVN’s strategy –ongoing consolidation

Expand generation capacity

- Target a coverage ratio from roughly 20% to 40%–60%

- Increase the share of renewable power generation from 30% to 50%

- High quality projects in SEE

Maintain market leadership in Austrian supply business

Enhance efficiency and profitability of regulated operations

- Maintain high level in Austria

- Continue improvements in SEE

Capitalise on environmental services business expertise and track record

EVN at a glance

7

Implementation of strategic goals in 2010/11

EVN at a glance

Expansion of renewable energy in Lower Austria and abroad

- Acquisition of 13% of VERBUND Innkraftwerke GmbH in Bavaria

- New windparks in Lower Austria

- Capacity increase of existing small hydro power plants in Lower Austria

- Completion of EVN’s largest photovoltaic plant in Bulgaria

- Clear majority (70%) in the hydropower project “Gorna Arda” 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

- Start-up of the cogeneration plant in Plovdiv, Bulgaria

8

Strengthening of liquidity position

EVN at a glance

Capital increase of EVN AG by 10% to EUR 330m in October/November 2010

- Net proceeds of EUR 175.5m from capital increase

- Strengthening EVN’s balance sheet and supporting EVN’s credit rating

- Financing projects for expansion of renewable energy capacities in Lower Austria

Issuance of a corporate bond in October 2011

- EUR 300m

- Tenor: 10.5 years, Coupon: 4.25%

Issuance of two private placements in March 2012

- EUR 100m and EUR 25m

- Tenor: 20 years, Coupon: 4.125%

Financial flexibility through committed credit lines of EUR 775m (as per March 31st, 2012)

9

77% 68% 68% 64% 64% 65%50%

23% 32% 32% 36% 36% 35%50%

0%

20%

40%

60%

80%

100%

05/06 06/07 07/08 08/09 09/10 10/11 long-

termConventional power generation Renewables

56.1%68.8%

39.5%29.2%

19.1% 17.8%

40%-

60%

16.3%20.8%

18.2%

0%

10%

20%

30%

40%

50%

60%

70%

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 long-

term

Generation mix

Coverage ratio

Market entranceBulgaria

Market entranceMacedonia

EVN at a glance

Increase coverage ratio and diversify generation portfolio

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

10

EVN – an attractiveinvestment opportunity

1 Growing portfolio of high quality generation assets

More than 60% of revenues and more than 80% of EBITDA from stable core Austrian business

Upside potential in SEE region

Diversified business model through integration ofenvironmental services business

Strategic investments in VERBUND and RAG strengtheninternal energy hedge

Solid capital structure and competitive credit rating support

2

3

4

5

6

EVN at a glance

11

Ongoing projects to double generation output by 2020

Selected current generation projects

1

1.000

1.4101.583 1.608 1.692 1.820

192

2.746

1.873

53

12884

25173

410

2.845

119

Status quo

2010/11

Walsum

(f inanced)

Wind parks

(partly f inanced)

Ashta Gorna Arda Devoll Others

(Pro

-rata

insta

lled c

apacity

, M

W)

1) 2)

Project Walsum Wind parks 1) Ashta Gorna Arda Devoll Others 2)

Fuel type Hard coal Wind Hydro Hydro Hydro Various

Pro-rata investment (EURm) 402 173 105 350 400 n/a

Expected COD 2013 2011/13 2013 2019 2016/19 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

EVN at a glance

12

Majority of revenues and EBITDA generated in domestic and regulated businesses

2

Generation 3% Network

Infrastructure

Austria

16%

Energy Trade

and Supply 40%

Energy Supply

SEE

29%

Environmental

Services

12%

1) Pre consolidation adjustments2) 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


Revenue breakdown by segments 2010/111) Geographic revenue breakdown2)

Share of regulated EBITDA3) Geographic EBITDA breakdown2)

62% 62% 60%

38% 38% 40%

2,727.0 2,752.1 2,729.2

0

500

1,000

1,500

2,000

2,500

3,000

08/09 09/10 10/11

Austria International

80% 79% 76%

20%21%

24%373.4416.6

471.4

0

100

200

300

400

500

08/09 09/10 10/11

Austria International

EU

Rm

EU

Rm

47% 44% 46%

18% 17%18%

35%

39%35%

471.4

416.6373.3

0

50

100

150

200

250

300

350

400

450

500

08/09 09/10 10/11

EU

Rm

Unregulated business Regulated international business Regulated domestic business

EVN at a glance

53%

13

Regulated business in Austria

50% of the efficiency gains during one regulatory period are passed on to end customers.

Network Electricity Gas Comments

Reset date

(Regulatory period length)

1 Jan 2014

(4 years)

1 Jan 2013

(5 years)

Next reset of WACC and X factor

RAB (EUR m) Not public Not public Capex retrospectively monitored each year

WACC (pre-tax, nominal) 7.0% 7.0% Set for length of regulatory period

X factor – sector (Xgen) 1.95% 1.95% X factor the same for all companies

X factor – company specific 0.25% 0.00% Additional X factor is company specific

Inflation Set annually Set annually Network Operator Price Index

2

Source: E-Control 2010, company information

EVN at a glance

14

Regulated business in SEE

ERC

(Energy Regulatory Commission)

SEWRC

(State Energy and Water Regulatory Commission)

Regulatory authority

Electricity Bulgaria Macedonia

Reset date

(Regulatory period length)

1 Jul 2013

(5 years)

1 Jan 2015

(3 years)

RAB (EUR m) Not public Not public

WACC (pre-tax, nominal) 12.0% 6.7265%

Accepted grid losses 15.0% 14.0%

X factor Yes No

3

EVN at a glance

Source: Regulators in Bulgaria (SEWRC) and in Macedonia (ERC)

15

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

Plovdiv

Skopje

BulgariaMarket entry in 2005

Macedonia Market entry in 2006

2

EVN at a glance

16

0

5

10

15

20

25

Bulg

aria

Macedonia

Czech

Republic

Austr

ia

Germ

any

EU

-27

2008/09 2009/10 2010/11

Upside potential from SEE market development

3

17%15% 14% 13% 13% 12% 12%

24%22% 21%

17% 16%18%

04/05 05/06 06/07 07/08 08/09 09/10 10/11

Grid losses, BG Grid losses, M K

54

80

100

0

20

40

60

80

100

120

EV

N in

Bu

lgari

a

EV

N in

M

aced

onia

EV

N in L

ow

er

Austr

ia

Improvement of grid efficiency (%)

Upside

potential

1) In %, basis: Lower Austria = 100%

Illustrative electricity sales volumes per customer (%)1)

Electricity prices for households (EUR cent/kWh)

EVN at a glance

17

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

4

EVN at a glance

Competitive business model through integration of environmental services business

18

Internal hedge from investments5

12.63% 50.03% 73.63%

- #1 electricity producer in

Austria with 8.6 GW installed

capacity

- Mcap (3/31/2012): EUR 7.9bn

- Historical payout ratio ~50%

- #2 oil and gas producer in AT

- One of the largest gas

storage operators in Central

Europe with 5 bn m³ working

gas capacity

- #1 green energy producer in

Austria with 242 MW

installed capacity

- Increasing wind energy

capacity by 270 MW in the

next 5 years

49.0% 49.0%

Strengthen vertical integration

Financial exposure to generation and upstream gas

Financial hedge against increasing input energy costs

Regional expansion and contribution to EVN’s profitability

EVN at a glance

19

32.2

44.3

60.4

-3.4 -3.1

9.4

42.1

50.1

22.123.1

25.0

-2.5

94.0

116.3

89.4

-10

10

30

50

70

90

110

130

08/09 09/10 10/11

EU

Rm_

RAG BEWAG, BEGAS VERBUND Others

Strategic investments provide a significant contribution to EVN’sprofit

- 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 2010/11

- Contribution from Others decreased due to impairment for the hydropower project Ashta (EUR –21.3m)

5

EVN at a glance

Substantial contribution to net profit from investments

20

0.370.40 0.41

33.9% 34.7% 38.5%

0.0

0.1

0.2

0.3

0.4

0.5

08/09 09/10 10/11

EU

R

0%

20%

40%

60%

80%

100%

Pa

yo

ut ra

tio

Dividend per share Payout ratio

Rating

S&P: A– / negative

Moody’s: A3 / stable

EVN aims at preserving a competitive investment grade credit rating

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% (30.9.2011: 46.2%)

- Net debt coverage (FFO) ≥ 25% (30.9.2011: 38.2%)

- Interest cover (FFO) ≥ 5x (30.9.2011: 7.6x)

- EVN intends to increase its dividend payout ratio up to 40% mid-term and to above 40% longer-term

Dividend per share

1,378.21,458.2

1,579.2

44.1%48.2%

49.7%

0

200

400

600

800

1,000

1,200

1,400

1,600

08/09 09/10 10/11

EU

Rm

_

0%

20%

40%

60%

80%

100%

Ge

ari

ng

(%

)

Net financial debt Gearing

6

EVN at a glance

Solid capital structure and rating supports

21

Debt maturity profile

Redemption of EUR bond with nominal value of EUR 257.4m on December 14thth, 2011

Share of fixed interest debt as of March 31th, 2012: 76%

Average financing costs: 4.2%

Financial flexibility:

- Syndicated loan EUR 600m (undrawn); maturity 2013

- Committed bilateral credit lines of EUR 175m

6

EVN at a glance

82 125184

97

517235

733

82125

419

97

1,250

0

200

400

600

800

1,000

1,200

1,400

11/12 12/13 13/14 14/15 >2015

EU

Rm_

_

Bank debt Bonds

22

Outlook 2011/12

Assumptions

- Stable end customers businessdevelopment

- Lower or negative spreads betweenprimary energy and electricity prices

- Stable order book in EnvironmentalServices segment and no negative impact due to economic downturn

EVN‘s expectations

- Revenue and operating results to remain stable

- Financial results to exceed previous year’s level

- Group net profit comparable to prior-year level

EVN‘s ambitions

- Competitive investment grade credit rating

- Attractive dividend policy

- Key ratios (on an adjusted basis): Equity ratio: >40%Net debt coverage (FFO): >25%Interest cover (FFO): >5x

EVN at a glance

23

Financial figures

35.3%

1,131.3

48.3%

3,208.5

6,636.3

415.6

382.6

186.9

362.3

2,397.0

2007/08

48.2%

1,458.2

44.9%

3,025.3

6,731.2

394.0

499.3

207.0

416.6

2,752.1

2009/10

49.7%

1,579.2

46.2%

3,176.0

6,870.4

415.7

522.0

189.7

471.4

2,729.2

2010/11

27.4%

825.3

48.1%

3,014.7

6,261.9

277.7

342.8

227.0

350.7

2,233.1

2006/07

44.1%

1,378.2

46.7%

3,127.2

6,695.4

415.7

335.3

177.9

373.4

2,727.0

2008/09

Gearing

Net debt

Equity ratio

Equity

Balance sheet total

Investments1)

Net cash flow fromoperating activities

Group net profit

EBITDA

Revenue

EURm

1) In intangible assets and property, plant and equipment

EVN at a glance

24

EVN at a glance




Agenda

25

63.4 48.970.8

161.5156.5

160.9

32.5

21.5

25.3

104.8

100.7

112.5

67.4

68.6

48.3

415.7

394.0

415.7

0

50

100

150

200

250

300

350

400

450

500

08/09 09/10 10/11

EU

Rm_




Netw ork Infrastructure Austria

Generation



Investments 2010/111)

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 transportpipelines „Süd- and Westschiene“

- Energy Trade and Supply:Expansion of heating networks

- Energy Supply South East Europe:Expansion of the network infrastructure and replacement of metersConstruction of the new cogeneration plant in Plovdiv

- Environmental Services:Combined cycle heat and power cogeneration plant in Moscow

26

Strategy to double wind capacity by 2015

Austrian Green Electricity Act

Legal framework until 2011 Amendment 2012

> 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

Eastern part of Lower Austria =

Attractive on-shore wind region

> One of the most attractive regions in Europe (due to strong wind conditions in the plain Danube and Pannonianarea)

> “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)

> 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

> EVN’s focus on Lower Austria

> 163 MW installed capacities

> Strong negotiating powervis-à-vis turbine suppliers

> Wind park IRR (after tax) 7%–8%

� Generate stable, regulatedcash flows on a long-term basis


27

Windpower plants in Lower Austria

10 windparks (84 wind turbines)

- 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 (9 wind turbines)

- Tattendorf (8 wind turbines)

- Pöttelsdorf (4 wind turbines)

Windpark project Glinzendorf

- Total capacity: 18 MW (9 wind turbines)

- Total investments: EUR 27m

Total capacity: 163 MW

- As of September 30th, 2011: 138 MW

Electricity for 100,000 households


28

Hydropower plantsin Lower Austria

River Inn

- 13% stake in VERBUND-InnkraftwerkeGmbH

- Capacity: 41 MW (EVN stake)

Schütt

- Capacity: 2 MW

- 2,700 households

- Investments: EUR 9.5m

Schaldorf

- Capacity: 1 MW

- 1,500 households

- Completion: Spring 2012

© VERBUND


VERBUND-Innkraftwerke

29

Hydropower plant projectsin 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

Project Devoll

- 50:50 JV with Statkraft (Norway)

- 3 hydropower plants

- Capacity: 275 MW


- Concession period: min. 35 years



Project Ashta on the Drin River

30

Gorna Arda

- 70% EVN stake, 30% NEK

- River Arda, South Eastern Bulgaria

- Total capacity: 120 MW – 170 MW (depending on particular expansion stage)


- Total investments: up to EUR 500m



Hydropower plant project in Bulgaria

31

Photovoltaic plants in Bulgaria

Blatets

- Start of operations: May 2010

- Total capacity: 836.7 kWp

- Investments: EUR 3m

- CO2 savings: 280 t p.a.

Trastikovo

- Start of operations: July 2011

- EVN‘s largest photovoltaic park

- ~25,000 modules

- Total capacity: 1,995 kWp

- Generation: ~2.4 GWh p.a.


- CO2 savings: 2,000 t p.a.


32

Cogeneration plantin Bulgaria

Plovdiv

- Generation of electricity and heat

- Start of construction: 2009/10

- Start of operations: end 2011

- Capacity:Electricity: 50 MW Heat: 54 MW


- Supply of ~33,600 households

- Most modern cogeneration plant in the Balkans

- Increasing the security of energy supplies


33

Gas supplyin Lower Austria

„Südschiene“

- Gänserndorf-Semmering

- Completion: July 2011

- Gas pipeline: ~120 km


„Westschiene“

- Auersthal-Amstetten

- Start of construction: June 2011

- Completion: ~September 2013

- Gas pipeline: ~150 km



34

Gas supplyin Croatia

Concessions to build and operatea natural gas distribution networkon 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)


35

Waste incineration plants

Dürnrohr, Lower Austria

- Line 3

- Start of operation: early 2010

- 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.


- Start of operation: 2008

- EVN operation: 13 years


36

Waste incineration plant project

Moscow

- December 2009: Acceptance of a tender to construct another wastetreatment plant in Moscow

- Total capacity: 700,000 t p.a.


- Start of operations: 2014


37

EVN at a glance




Agenda

38

Business achievements 2010/11


Stronger positioning in renewable energy

- Acquisition of a 13% stake in VERBUND-Innkraftwerke GmbH

- Revitalisation of the Schütt small-scale hydropower plant in Lower Austria

- Two new wind parks in Lower Austria

- New photovoltaic plant in Trastikovo, Bulgaria

- Clear majority (70%) in the hydropower project “Gorna Arda”, Bulgaria

Natural gas transport pipeline “Südschiene” put into operation

Construction start for the “Westschiene” in Lower Austria

Construction begin on gas network in Zadar, Croatia

Advanced cooperation between the Macedonian government and EVN

Environmental Services segment acquired first project in Romania

39

Development of electricity and primary energy prices

Increase in electricity and primary energy prices

- Ongoing strong demand in Asian in first half of 2011

- Political turmoil in North Africa and Middle East

- Nuclear disaster in Fukushima and German decision to exit nuclear power by 2022

Electricity prices have not increased as much as primary energy prices

0

10

20

30

40

50

60

70

80

90

2005 2006 2007 2008 2009 2010 2011 2012 2013

energy prices

in EUR/MWh

forward

coal

gas procurement

crude oil

electricity (base)


40

Group results 2010/11Revenue drop in the energybusiness offset by positive development in EnvironmentalServices segment

Higher EBIT due to one-offs

Negative development in financialresults

- Lower dividend paid by VERBUND

- Decline in interest and other financialresults

Strong cash flow generation

Decrease of earnings per share

- Lower Group net profit

- Increased number of outstandingshares following the capital increase

Higher dividend payout ratio2.50.41Dividend per share

EUR

–16.11.07Earnings per share

– 8.4 189.7Group net profit

4.6522.0Net cash flow fromoperating activities

–50.041.8Financial results

16.8218.7EBIT

13.2471.4EBITDA

–0.82,729.2Revenue

Change in %2010/11EURm


41

Asset impairments 2010/11

+31.22. Procurement rights at hydropower plants

–38.41. Gas-fired power plants

–10.7–29.1Effects in operating results

–23.15. Hydropower project Ashta

–23.1Effects in financial results

–10.7–4.24. Others

–17.73. TEZ Plovdiv / Gas power plant side in Plovdiv

2009/102010/11Impairment tests, EURm Assumptions used at impairment tests:

- High gas sourcing costs from long-term supply contracts and the elimination of free CO2 certificatesas of 2013

- 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


42

EBITDA development by segments

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

84,2

52,5

32,1 33,4

57,3

103,9

64,9 69,0

86,8

159,1

191,4 190,4

68,952,342,0 54,8

46,545,1

10,4%

57,6%44,3%

33,1%

2,8%4,8%

8,9%7,4% 8,0%

34,0%

39,1% 39,8%

17,0% 18,3% 19,9%

0

20

40

60

80

100

120

140

160

180

200

220

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

EU

Rm_

0%

10%

20%

30%

40%

50%

60%

Marg

in (

%)

EBITDA PBT EBITDA Margin

Generation EnvironmentalServices





43

Generation

–18.297.1Revenue

–8.51,998thereof thermal energy sources

–10.41,002thereof renewable energy sources

–9.23,000Total

–38.932.1EBITDA

––3.6EBIT

EURm

Change in %2010/11Electricity generation

volumes (GWh)

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


44


+8.9%(4/1/2011)

–7.0%Gas (12/1/2009)

End customer price adjustments1)

6.91,678Heat

–3.96,475Natural gas

1.87,143Electricity

EURm

81.5103.9EBITDA

–88.8EBIT

–1.91,164.3Revenue

Change in %2010/11Sales volumes to end

customers (GWh)

1) Average, household sector (EVN Source)

Higher sales volumes to end customers

- Electricity: economic upswing and expansion of EnergieAllianz outsideAustria

- Heat: higher sales of steam and heatto key accounts

Decrease in revenue despitehigher sales volumes

- Adjustment in gas prices for end customers

- Decrease in marketing proceeds frompower plants

EBITDA and EBIT increase

- Lower primary energy costs due to:

- One-off effects due to usage of provisions for impending losses

- Reduced purchasing volumesbecause of reduced operation of ownpower plants


45

Energy SupplySouth East Europe

+4.9%(3/1/2011)

+5.1%Macedonia (1/1/2010)

+1.9%(7/1/2011)

+2.0%Bulgaria (7/1/2010)

Electricity price adjustments1)

EURm

1.613,396Electricity

–7.9233Heat

25.886.8EBITDA

12.79.7EBIT

–3.2834.3Revenue

Change in %2010/11Network distribution

volumes (GWh)

1) 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 write-offs 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


46

Network InfrastructureAustria

+10.6%Gas (1/1/2011)

+1.0%Electricity (1/1/2011)

Tariffs adjustments1)

–11.416,415Natural gas2)

2.47,754Electricity

EURm

–0.5190.4EBITDA

–3.291.7EBIT

–2.1478.8Revenue

Change in %2010/11Network distribution

volumes (GWh)

1) Including network sales to EVN‘s power stations

2) Average, according to the regulator in Austria, E-Control

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


47


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

31.868.9EBITDA

EUR bn

1.3Contract value1)

17.854.8Profit before income tax

53.242.9EBIT

21.6346.9Revenue


1) As of September 30th, 2011


48

26.6

54.7

47.4

62.9

61.6

46.7

-6.5

-0.8

-4.7 -38.5

-41.1

-31.9

41.8

83.6

50.8

-50 -30 -10 10 30 50 70 90 110 130 150

1

2

3

EURm_

Gain from other investments

Income from investments in equity accounted investees

Total interest results

Total other financial results

Financial results 2010/11

2008/09

2009/10

2010/11

Financial results dropped by 50%

Earnings contribution frominvestments fell

- Higher results from investments in equity accounted investees:

RAG:up from EUR 44.3m to EUR 60.4m

BEWAG/BEGAS:up from EUR –3.1m to EUR 9.4m

Impairment for hydropower projectAshta (EUR –21.3m)

- 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


49

Balance sheet

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

1) Compared to September 30th, 2010

1.3p46.2Equity ratio (in %)

1.5p49.7Gearing (in %)

8.31,579.2Net debt

5.03,176.0Equity

2.16,870.4Total assets

Change in %

1)2010/11EURm

46.2% 39.5% 14.3%

Equity Non-current liabilities Current liabilities


50

1,458.2

1,378.2

1,579.2

-175.5105.4

676.1-478.1 -7.0

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

30.9.2009 30.9.2010 Gross cash flow Working Capital,

Taxes, Others

Investments Dividends Capital increase 30.9.2011

EU

Rm

_

Net debt development


51

Cash flowHigher 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

–23.5Net change in cashand cash items

–77.113.1Net cash flow from financing activities

–11.9–511.6Net cash flow from investing activities

4.6522.0Net cash flow from operating activities

2.2478.1Gross cash flow


415.7

394.0

478.1

467.7

0 100 200 300 400 500

10/11

09/10

EURm__

Gross cash flow

Investments in property, plant and equipment and intangible assets


52

EVN at a glance




Agenda

53

Investment focus on wind energy in Lower Austria

- Capacity increase by 15% to 163 MW; supply of 100,000 households

Start of construction for a biomass district heating plant in Steyr

Completion of the first construction stage of „Westschiene“

Aquisition of additional shareholdings in the two Bulgarian subsidiaries

- EVN currently holds more than 99% respectively

Contract award in Prague in the Environmental Services segment

- EVN operates now in 21 countries

Issuance of a new bond

- EUR 300m

- Tenor: 10.5 years

- Fixed coupon: 4.25%

Business highlights


54

Business development

Weather-related revenue development

- Energy business: increase

- Environmental services business: decrease

Higher EBITDA

- Operating expenses up 2.8%

Stable EBIT

- Impairment loss of EUR 8.0m

Positive development of financial results

- Higher income from investments in equity accounted investees

Weather-related decrease of net CF from operating results

6.617.3Financial results

0.7104.7EBIT

5.8167.6EBITDA

–69.225.9Net cash flow from operating activities

–1.60.50Earnings per share

EUR

1.889.5Group net profit

3.4829.7Revenue

Change in %

2011/12Q. 1EURm

Business development


55

EBITDA development by segments

Generation: power request on the part of the German Federal Network Agency

Energy Supply South East Europe: weather-related sales volumes increase and higher end customer prices

Network Infrastructure Austria: higher maintenance costs


Generation EnvironmentalServices




6.016.7

14.4

68.8

74.2

63.7

22.8

12.516.2

44.045.042.3

18.3

11.9

28.5

6.3

11.88.7

17.1%16.6%

11.5%

46.7%

53.0%

47.0%

6.1%7.2%

11.8%12.2%11.4%

52.9%41.6%

66.7%

9.3%

0

20

40

60

80

Q. 1

09/10

Q. 1

10/11

Q. 1

11/12

Q. 1

09/10

Q. 1

10/11

Q. 1

11/12

Q. 1

09/10

Q. 1

10/11

Q. 1

11/12

Q. 1

09/10

Q. 1

10/11

Q. 1

11/12

Q. 1

09/10

Q. 1

10/11

Q. 1

11/12

EU

Rm_

0%

10%

20%

30%

40%

50%

60%

70%

Marg

in(%

)

EBITDA Profit before tax EBITDA Margin

56

Generation

21.134.6Revenue

–34.7547thereof thermal energy sources

–0.4253thereof renewable energy sources

–26.8800Total

53.218.3EBITDA

–35.13.9EBIT

EURm

Change in %

2011/12 Q. 1

Electricity generationvolumes (GWh)

Decline of power generation

- Negative spark spreads

- Lower water flow conditions

Revenue increase

- Power request by the German Federal Network Agency

- Revision in natural gas prices between Gazprom and EconGas

EBIT drop

- Impairment loss on the biomass pilot plant in Dürnrohr of EUR 8.0m


57


+3.6%(10/1/2011)

+8.9%Gas (4/1/2011)

End customer price adjustments1)

2.9572Heat

–11.02,296Natural gas

–2.21,908Electricity

EURm

–2.244.0EBITDA

–2.840.6EBIT

0.8371.9Revenue

Change in %

2011/12 Q. 1

Sales volumes to end customers (GWh)

1) Average, household sector (EVN source)

Weather-related lower salesvolumes to end customers

- Natural gas: reduced use of EVN‘sown thermal power plants

Revenue increase

- Adjustment in natural gas prices

- Initial consolidation of first facilityGmbH

EBITDA and EBIT decrease

- Higher procurement costs

- Increased cost of materials


58

Network InfrastructureAustria

+10.6%Natural Gas (1/1/2011)

+1.0%Electricity (1/1/2011)

Tariffs adjustments1)

–16.55,216Natural gas2)

0.22,051Electricity

EURm

–7.268.8EBITDA

–10.844.8EBIT

5.3147.4Revenue

Change in %

2011/12Q. 1

Network distribution volumes (GWh)

1) Average, according to the regulator in Austria, E-Control

2) Including network sales to EVN‘s power stations

Diverse distribution sales volumes

- Electricity: at the prior-year level

- Natural gas: reduced use of EVN’sown thermal power plants

Adjustment of network tariffs

Decrease of EBITDA and EBIT

- Higher maintenance costs


59

Energy SupplySouth East Europe

+4.9% 2)(3/1/2011)

+5.1% 2)Macedonia (1/1/2010)

+1.9%(7/1/2011)

+2.0%Bulgaria (7/1/2010)

Electricity price adjustments1)

EURm

9.23,711Electricity

13.186Heat

82.722.8EBITDA

–8.3EBIT

20.0246.2Revenue

Change in %

2011/12 Q. 1

Network distribution volumes (GWh)

1) Average, household sector, according to the regulators in

Bulgaria (SEWRC) and Macedonia (ERC)

2) EVN Macedonia

Temperature-related sales volumes increase

- BG: heating degree +38.8%p

- MK: heating degree +34.3%p

Revenue increase

- Weather-related hike of sales volumes

- Electricity price adjustments

EBITDA doubled

Increase of EBIT from EUR –2.5m despite

- Higher prices for procured energy

- Increased write-off of receivables

- Higher personnel expenses


60


Weather-driven revenue decline

EBITDA and EBIT drop

Financial results down

- Decreasing interest balance of projects during the operational phase

- Higher interest expense of projects during the construction phase

New market entry

- Concession for wastewater treatment plant in Prague

–32.40.8Financial results

–13.814.4EBITDA

–26.48.7Profit before income tax

–25.77.8EBIT

–16.584.1Revenue

Change in %

2011/12 Q. 1EURm


61

Financial results

Financial results increased

Higher income from investments in equity accounted investees

- EconGas: EUR 8.5m, + EUR 3.1m

- BEWAG/BEGAS: EUR 4.0m,+ EUR 3.3m

Higher interest expense

- Issuance of a new Eurobond

- Higher net debt

- Slightly higher interest rates

-

-

-

7.6

26.7

32.4

-7.0

-9.4

-13.2

2.9

-1.2

-2.0

3.6

16.2

17.3

-20 -10 0 10 20 30 40

Q. 1 09/10

Q. 1 10/11

Q. 1 11/12

EU

Rm_

Income from investments in equity accounted investeesTotal interest resultsTotal other f inancial results


62

Balance sheet

Increase of total assets

- Increase in equity accounted investees: higher earnings and capital contribution for projects and new investments

- Seasonally-related increase in receivables

Stable and high equity ratio

Increase in net debt

- Despite higher gearing EVN has competitive investment grade

1) Compared to September 30th, 2011

–0.3p45.9Equity ratio (in %)

4.1p53.8Gearing (in %)

9.21,724.4Net debt

1.03,206.5Equity

1.76,985.0Total assets

Change in %

1)2011/12

Q. 1EURm

88.0% 12.0%

Non-current asset Current asset

45.9% 42.7% 11.4%

Equity Non-current liabilities Current liabilities


63

Cash flow

Higher gross CF

- Higher depreciation and amortisation

- Higher level of non-current provisions

Decrease of net CF from operating activities

- Weather-related increase in working capital

Increase of net CF from investing activities

- Capital payment for investments in equity accounted investees

- Acquisition of additional stake in EVN’sBulgarian subsidiaries

- Increase in lease receivables

Decrease of net CF from financing activities

- Capital increase in prior-year period

–53.769.4Net change in cashand cash items

–82.729.2Net cash flow from financing activities

48.7–98.2Net cash flow from investing activities

–69.225.9Net cash flow from operating activities

6.8149.5Gross cash flow

Change in %

2011/12 Q. 1EURm

76.0

74.7

149.5

139.9

0 100

Q. 1 11/12

Q. 1 10/11

EURm__

Gross cash f low

Investments in intangible assets, property, plant and equipment


64


Investments1)

Investments up 1.7%

Key investments

- Wind parks in Lower Austria

- Construction of „Westschiene“

- Expansion of heating networks in LowerAustria

- Cogeneration plant in Plovdiv, Bulgaria

- Cogeneration plant in Ljuberzy, Moscow

5.3 3.1

20.219.5

2.73.8

30.0

41.3

16.1

6.3

74.7 76.0

0

10

20

30

40

50

60

70

80

Q. 1 10/11 Q.1 11/12

EU

Rm_




Netw ork Infrastructure Austria

Generation


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.

66

EVN Investor RelationsAdditional information

Stefan Szyszkowitz

Chief Financial Officer

Phone: +43 2236 200-12132

Fax: +43 2236 200-82132

E-mail: [email protected]

Klára Székffy

Head of Investor Relations

Phone: +43 2236 200-12745

Fax: +43 2236 200-82745


Investor information on the web

www.evn.at

www.investor.evn.at

www.responsibililty.evn.at


EVN AG

Headquarters

EVN Platz

2344 Maria Enzersdorf

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