EVN AG — Call Transcript 2013

May 28, 2013

EVN Conference Call HY. 1 2012/13 Results

May 28th, 2013

Deal for the sale of the 50% stake in Devoll to Statkraft closed

• Earnings of WEEV burdened by market valuation of Verbund shares acquired in 2010
• Negatively impacted project development in Moscow
• Group net profit for 2012/13 is expected to decline by around 40%

One-off effects in profit of equity accounted investees

	EU Rm	2 0 1 2 / 1 3 H Y 1	2 0 1 1 / 1 2 H Y 1	/– + l i n o m n a
E G c o n a s		2 0. 4 –	1 1. 8	–3 2. 2
l l d h S D H A e o r o p o e r v y w		2 7. 5 –	0. 7 –	–2 6. 8
l b i i G W E E V B H t e e g u n g s m		2 2. 5 –	2 1.	–2 3. 7
R A G		4 8. 9	4 4. 8	4. 1
l d l d i B H u r g e n a n o n g		6. 7	9. 7	–3 0
Z O V Z O V U I P ;		5. 5	6. 6	1. 1 –
h O t e r		2. 0	1. 4	0. 6
l T t o a		3 –7	7 4 7	8 2 0

EconGas

Negative earnings contribution recognised in Q. 1 2012/13

Devoll

Sale of 50% stake in hydropower project to joint venture partner

WEEV

P&L relevant market valuation of Verbundshares acquired in 2010

EVN assigned reserve capacity of 785 MW for Southern Germany over the next three years

• Electricity production of renewable sources increased by more than 25%
• Macedonia: 7 small hydropower plants came back to our operatorship (48 MW)
• Albania: full operations of Ashta hydropower plant (53 MW)
• New 24 MW wind park in Lower Austria under construction
• Operations started at Europe's largest wastewater purification plant in Warsaw, Poland
• Standard & Poor's and Moody's rating: unchanged with stable outlook

	EU Rm	2 0 2 3 1 / 1 H Y 1	/– + i % n
R e v e n u e		1, 6 5 2. 4	2. 3 –
E B I T D A		3 3 0. 2	2. 7 –
E B I T		2 1 2. 1	1. 9 –
l l F i i t n a n c a r e s s u		1 7. 2 –	–
f G i t t r o u p n e p r o		1 3 1. 5	3 8. 2 –
f f h l N t e c a s o w r o m i i i i t t t o p e r a n g a c v e s		1 5 5. 9	–
	EU R
h i E a r n n g s p e r s a r e		0. 7 4	3 7. 9 –

Revenue impacted by different developments

• Energy business: above prior year
• Environmental services business: below prior-year level

EBITDA and EBIT below last year

• Higher other operating income
• Higher procurement costs for energy
• Lower material costs for project business
• Higher other operating expenses

Decrease in financial results by EUR 82.6m to EUR –17.2m

Financial results

Financial results affected by different developments

• – Drop in income from investments in equity accounted investees
• –Stable income from other investments
• –Lower interest and other financial results

EBITDA development by segments

• Generation: lower wind conditions, unfavourable market price development, lower electricity production of gas-fired power plants (prior year positively affected by the power request from Germany)
• Energy Trade and Supply: revenue decrease due to drop in sales of marketed natural gas volumes and price reduction due to lower additional costs for renewable electricity, partly compensated by lower operating expenses

Generation

l i i i l E t t t e c r c y g e n e r a o n v o u m e s	h GW	2 0 2 3 1 / 1 H Y 1	/– + i % n
l T t o a		6 6 1, 1	3. 2
b l R e n e w a e e n e r g y s o u r c e s		7 7 0	2 2. 8
h l T e r m a e n e r g y s o u r c e s		8 9 1	9. 3 –

l f i i F n a n c a p e r o r m a n c e	EU Rm
R e v e n u e		6 6. 2	1. 8 –
E B I T D A		3 2. 1	7. 5 –
E B I T		1 8. 4	3 3. 2

Higher generation volumes

• Increase from renewable energy sources
• Good water flow
• Start of operations of Ashta, Albania
• Production decline of gas-fired power plants

Lower revenue

• Negative development of market prices
• Lower wind conditions
• Reduction in the option value of thermal power plants

EBITDA decrease but EBIT increase

• Higher procurement volumes
• Impairment charge in prior year

Energy Trade and Supply

d E t n c s o m e r u i d j ) 1 t t p r c e a u s m e n
l i i E t t e c r c y	/20 12 1/1	% 1. 7 –
l l S t a e s v o u m e s o d t e n c u s o m e r s	h	2 0 2 3 1 / 1 H Y 1	/– + i % n
l i i E t t e c r c y	GW	3, 9 3 4	0. 5
l N G t a u r a a s		5, 1 7 6	0. 1
H t e a		1, 2 6 2	3. 9

l f i i F n a n c a p e r o r m a n c e	EU Rm
R e v e n u e		6 9 6. 2	4. 3 –
E B I T D A		6 6. 3	1 1. 2 –
E B I T		5 8. 8	1 2. 8 –

Positive sales volumes development

• Stable natural gas and electricity sales volumes
• Higher heat volumes due to expansion of capacities and lower temperatures

Revenue drop

• Decrease in sales of marketed natural gas volumes
• Price reductions in prior year due to lower additional costs for renewable electricity
• Revenue of sold subsidiary included in prior year

Financial results influenced by EconGas

Network Infrastructure Austria

f f ) i 1 T t t a r s s r u c u r e s
l E i i t t e c r c y	1/1 /20 12	–
	1/1 /20 13	–0 % 4
l N t a u r a g a s	1/1 /20 12	9 % 1. –
	/20 13 1/1	% –2 5

k d i i b i N t t t e w o r s r u o n		2 0 2 3 1 / 1	/– +
l v o u m e s	h GW	H Y 1	i % n
l i i E t t e c r c y		4, 1 9 5	1. 3
2 ) l N G t a u r a a s		1 0, 5 5 6	3. 2 –

i i l f F n a n c a p e r o r m a n c e	EU Rm
R e v e n u e		2 9 3 4.	2. 0 –
E B I T D A		1 5 2. 0	1. 2
E B I T		1 0 2. 5	1. 6

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

2) Including network sales to EVN's power stations

Diverse distribution volumes development

• Electricity: slight increase
• Natural gas: decline
• Weaker demand from industrial customers
• Further reduction in use of EVN's thermal power plants

Revenue drop

Decrease in other revenue due to lessinvoiced customer projects

Energy Supply South East Europe

End customer price adjustments1)

l l i i B t u g a r a e e c r		/20 12 7/1	% 1 3. 6
		3/5 /20 13	3 % –7
	h t e a	4/1 /20 12	6. 8 %
		7/1 /20 12	–2 0. 6 %
		1/1 /20 13	–5 9 %
d i M a c e o n a	l i i t t e e c r c y	1/1 /20 12	) 2 4. 8 %
		8/1 /20 12	) 2 % 6. 1

		2 0 1 2 / 1 3	/– +
b i i d i K t e y e n e r g y u s n e s s n c a o r s	GW h	H Y 1	i % n
) 3 l d b l E i i i i i t t t t t e c r c y n e w s r u o n v o u m e s		7, 2 1 2	8. 7 –
d b l H i i i t t t t e a n e w s r u o n v o u m e s		1 7 5	1 7. 6 –
l l E i i i t t t e c r c g e n e r a o n o m e s y v u		2 3 2	6 8. 5

i i l f F n a n c a p e r o r m a n c e	EU Rm
R e v e n u e		5 7 0. 9	6. 8
E B I T D A		4 7. 5	0. 8 –
E B I T		1 3. 8	9. 4 –

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

Higher electricity generation

• Start of production of the new co-generation plant Plovdiv, Bulgaria in January 2012
• Seven small hydropower plants in Macedonia came back to our operatorship

Weather-related drop in sales volumes

Prior year: extremely cold

Revenue increase

Tariff adjustments in prior year

Decrease of EBITDA and EBIT

Higher prices for procured electricity, especially additional costs related to renewable energy

	2 0 1 2 / 1 3	/– +
EU Rm	H Y 1	i % n
	1 2 9. 9	2 2. 4 –
	2 8. 2	7. 9 –
	1 4. 3	1 7. 8 –
	5. 5	0. 1 4
	1 9. 8	1 1. 6 –

Lower revenue

Completion and invoicing of large projects in prior year

Financial results slightly up

Higher interest results

Business development

• Poland: start of operations at the largest wastewater purification plant in Europe in March 2013
• Lower Austria: further activities to ensure drinking water supply

	EU Rm	2 0 1 2 / 1 3 H Y 1	/– + i % n
f h l G r o s s c a s o w		3 7 9. 1	4 6. 7
f f h l i N t t e c a s o w r o m o p e r a n g i i i t t a c v e s		1 5 5. 9	–
h f l f i i N t t e c a s o w r o m n v e s n g i i i t t a c v e s		3 6. 8 1 –	6. 4 –
h f l f f i i N t e c a s o w r o m n a n c n g i i i t t a c e s v		1 1. 1 –	–
h h d h i N t e c a n g e n c a s a n c a s i t e m s		8. 0	–

Higher gross cash flow

Mainly due to earlier RAG dividend payout

Increase of net cash flow fromoperating activities

Affected by higher profit tax payments

Change of net cash flow from investing activities

• Capital payment for at-equity investments
• Investments in PPE
• Higher lease receivables

Drop in net cash flow from financing activities

Dividend payment to EVN's shareholders

• Capitalising on EVN's integrated business model
• Strengthening our business in core markets
• Focusing on efficiency-increasing measures
• Providing security of energy supply and services
• Benefitting from guaranteed feed-in tariffs for renewable energy
• Building on our broad, diversified and stable customer base

Appendix

Prior year adjusted due to IAS 19 (2011)

	2 0 2 1 1 / 1	2 0 2 1 1 / 1
	H Y 1	H Y 1	/– +
EU Rm	( d ) j. a		i % n
l P e r s o n n e e p e n s e s x	9. 1 4 5 –	6 2. 9 1 –	3. 1 4
E B I T D A	3 3 9. 3	3 2 5. 9	3. 1 4
E B I T	2 1 6. 2	2 0 2. 8	1 3. 4
I t t n e r e s e x p e n s e s	5 0. 9 –	4 2. 6 –	–8 3
l l F i i t n a n c a r e s s u	6 5. 4	7 3. 6	–8 2 1)
f f i i P t t t r o a e r n c o m e a x	2 8 6 1.	2 3 6 5.	3. 8
f i G t t r o u p n e p r o	2 1 2. 9	2 0 9. 1	3. 8

HY. 1 2011/12 (adj.): slight impact on Group net profit

Change of disclosure of interest component of the provisions for pensions and severance payments between personnel expenses and financial results Adjustment due to corridor method

Investments1)

Generation

Investment volume

Roughly on prior-year level

Investment focus

• Expansion of windpower capacity
• Expansion of district heating network
• Construction of gas-pipeline Westschiene
• Network expansion in Austria to ensure supply security against the backdrop of the steady rise in renewable energy
• Expansion and modernisation network infrastructure in SEE

Stefan Szyszkowitz

CFOPhone: +43 2236 200-12132Fax: +43 2236 200-82132E-mail:stefan.szyszkowitz@evn.at

Gerald Reidinger

Head of Finance and Investor RelationsPhone: +43 2236 200-12698Fax: +43 2236 200-82698E-mail:gerald.reidinger@evn.at

Investor information on the web

www.evn.atwww.investor.evn.atwww.responsibility.evn.at E-mail: investor.relations@evn.at

EVN AG

Headquarters EVN Platz2344 Maria Enzersdorf

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.