EVN AG — Call Transcript 2015

Feb 26, 2015

EVN Conference Call Q. 1 2014/15 Results

26 February 2015

• Increase in electricity generation based on full operations in the Duisburg-Walsum power plant and the expansion of renewable energy production
• Sale of the sodium hypochlorite plant to the Moscow city water supply and wastewater disposal company
• Group net result exceeds first quarter of previous year
• Outlook for 2014/15 financial year: Group net profit is expected to exceed 2012/13 level

Key financials

	EURm	2014/15 Q. 1	+/– in %
Revenue		599.9	8.2
EBITDA		184.8	32.3
EBIT		121.2	53.5
Financial results		–24.4	–33.2
Group net profit		73.1	66.1
Net cash flow from operating activities		92.4	–50.4

	EUR
Earnings per share		0.41	66.2

Higher revenue than in the previous year

• Full operations in the Duisburg-Walsum power plant
• Group's natural gas marketing activities
• Recent price decisions in SEE
• Thermal waste utilisation in Austria

Increase in EBITDA and EBIT

Financial results declined

• Termination of the hedge for the financing of the sold sodium hypochlorite plant and
• Costs for the related investment guarantee from the Federal Republic of Germany

Decline in cash flow from op. activities

resulted from an increase in working capital

Solid balance sheet structure

• Equity ratio 40.0%
• Net debt declined by EUR 269.9m to EUR 1,352.5m (compared to 30.09.2014)
• Gearing fell from 61.6% to 50.7% (compared to 30.09.2014)

EBITDA development by segments

• Generation: increased by full operations of the Duisburg-Walsum power plant
• Energy Trade and Supply: Temperature-related decrease of sales volumes
• Network Infrastructure Austria: temperature-related decline in natural gas distribution volumes
• Energy Supply South East Europe: positive volume and price effects
• Environmental Services: Sale of sodium hypochlorite plant and higher revenue from thermal waste utilisation

Generation

		2014/15	+/–
Electricity generation volumes	GWh	Q. 1	in %
Total		1,165	44.9
Renewable energy sources		401	-1.6
Thermal energy sources		764	93.0

Financial performance	EURm
Revenue		59.1	68.5
EBITDA		30.2	-
EBIT		16.8	-

Production increased by full operations at the Duisburg-Walsum power plant

Production from renewable energy

sources

• Decrease due to higher water flows in the previous year
• Increase due to full operations at the Prellenkirchen wind park

Higher EBITDA and EBIT

Higher revenue, operating expenses as well as depreciation and amortisation related to full operations in the Duisburg-Walsum power plant

Energy Trade and Supply

End customer price adjustment1) Electricity and gas	1.10.2014	–10%
Sales volumes to end customers		2014/15 Q. 1	+/– in %
Electricity	GWh	1,805	–3.9
Natural Gas		1,786	–13.0
Heat		565	–4.1

Financial performance	EURm
Revenue		155.7	37,1
EBITDA		30.1	–20.4
EBIT		25.9	–23.7

Development of sales volumes

• Higher electricity sales to industrial customers; temperature-related decline in household segment
• Temperature-related drop in sales volumes of natural gas and heat

Revenues and operating expenses rose

• Lower revenues from heat sales were offset by the sale of production from the Duisburg-Walsum power plant
• Increase in natural gas trading activities

Decrease in EBITDA and EBIT

• Weather-related lower sales volumes
• Effects from the average 10% reduction in end customer electricity prices

Network Infrastructure Austria

structures1) Tariff
Electricity	1.1.2014	-9.0%
Natural gas	1.1.2014	+7.7%
Network distribution		2014/15	+/–
volumes	GWh	Q. 1	in %
Electricity		2,104	0.2
Natural gas2)		4,464	–6.4

Financial performance	EURm
Revenue		127.9	–6.8
EBITDA		67.8	–6.7
EBIT		42.4	–10.8

Development of distribution volumes

• Electricity distribution volumes at prior year level
• Weather-related decline in natural gas distribution volumes

Decrease in EBITDA and EBIT

• Due to lower revenue in gas distribution volumes
• Higher revenue in cable TV and telecommunication services
• Lower operating expenses

2) Including network sales to EVN's power stations

End customer price	adjustments1)
Bulgaria	electricity	1.10.2014	9.7%
	heat	1.7.2014	5.1%
Macedonia	electricity	1.7.2014	3.5%
			2014/15	+/–
Key energy business indicators		GWh	Q. 1	in %
Electricity generation volumes			120	17.6
volumes2) Network distribution			3,507	2.2
Heat sales volumes to end customers			72	11.8

Financial performance	EURm
Revenue		274.1	3.9
EBITDA		15.6	24.7
EBIT		0.4	–

Rise in electricity generation volumes

Good water flows in Macedonia

Sales volumes increased

Temperature-related increase (Bulgaria) in network distribution volumes an heat sales volumes

Increase in EBITDA and EBIT

• Regulatory environment
• Continued reduction of network losses

Environmental Services

Financial performance	EURm	2014/15	+/– in %
Revenue		46.2	3.8
EBITDA		29.2	–
EBIT		22.5	–
Financial results		–9.7	–
Profit before income tax		12.7	–

EBITDA and EBIT

• Sale of the sodium hypochlorite plant
• Positive impact from thermal waste utilisation in Lower Austria

Drop in financial results

• Due to the termination of the hedge and investment guarantee related to the sodium hypochlorite plant
• Lower interest margin on completed projects

Business development

• Signing of the contract for the expansion of the Zalau wastewater purification plant in Romania
• Commissioning process started for the waste water purification plants in Larnaca and Krakow
• Construction of natural filter plants in Lower Austria

	EURm	2014/15 Q. 1	+/– in %
Gross CF		166.6	21.7
Net CF from operating activities		92.4	–50.4
Net CF from investing activities		60.9	–
Net CF from financing activities		–192.8	–
Net change in cash and cash equivalents		–39.4	–

Increase of gross cash flow

• Increase in the result before income tax
• Decline in the non-cash earnings components from equity accounted investees
• Increase in non-current provisions

Decline in net cash flow from operating activities

Working capital effect

Higher cash flow from investing activities

Sale of the sodium hypochlorite plant

Decrease in net cash flow from financing activities

• Repayment of the financing for the sodium hypochlorite plant
• Scheduled repayments

Outlook 2014/15

Group net profit 2014/15 is expected to exceed 2012/13 level

• Investment focus on Lower Austria
• Electricity and gas networks
• Renewable Energy (wind power)
• Water supplies
• EVN's strategy:
• Integrated business model
• Consolidation of existing business in core markets
• Increase of efficiency

Stefan Szyszkowitz

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

Gerald Reidinger

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

Investor information on the web

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

EVN AG

Headquarters EVN Platz 2344 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.