EVN AG — Earnings Release 2006

May 30, 2006

News Details

Corporate | 30 May 2006 08:00

EVN AG: Positive development of business in the first half year of 2005/06

Corporate-news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Positive development of business in the first half year of 2005/06 (October 1 – March 31, 2006) ·Significant improvement of the financial result due to positive development of EVN Group investments ·Acquisition of majority shareholding in the Macedonian electricity distribution company ESM AD ·“Austrian Electricity Solution” about to be implemented ·Positive contributions from Bulgarian subsidiaries, due to full first time consolidation 2005/06Half-Year 1EUR m Change% Sales revenues 1,179.8 +37.6 EBITDA 274.0 +11.4 Operating result (EBIT) 190.8 +15.7 Period net result 194.7 +30.5 Significant rise in sales revenues In the 1st half of 2005/06, total sales revenues of the EVN Group climbed to EUR 1,179.8 m, a rise of 37.6%, or EUR 322.1 m, above the previous year’s level, surpassing the EUR 1 bil- lion mark for the first time in any half-year period. The main reasons for this significant improvement in sales were the strong growth in EVN’s energy business, in addition to the highly successful project business in the field of environmental services. The operating result (EBIT) of the EVN Group climbed by 15.7%, or EUR 25.8 m, to EUR 190.8 m in the 1st half-year 2005/06. The Energy segment accounted for EUR 170.4 m of the operating result, whereas the Environmental Services segment contributed EUR 22.0 m, and the Other Business segment EUR 1.6 m. The improvement in the Group operating result is partly based on the growth in environmental services, attributable to progress made on ongoing projects, along with higher revenues from the company’s power plants. In addition, the higher operating result can also be attributed to the positive contributions made by the Bulgarian subsidiaries, which had not yet been incorporated into the income statement in the 1st quarter of the previous year. During the period under review, the financial result of the EVN Group improved by EUR 50.6 m, to EUR 81.4 m. This was primarily due to the higher contributions of EVN Group investments, which rose by 98.5%, or EUR 44.6m, to EUR 89.9 m. In turn, this was the consequence of the significant rise in the dividend distributed by Verbundgesellschaft, together with a very satisfactory development of the companies consolidated at equity in the consolidated financial statements. After taking account of minority interests (especially those in RAG Beteiligungs AG and the Bulgarian electricity supply companies), the period net result in the 1st half-year 2005/06 totalled EUR 194.7 m, a figure which was 30.5% higher than the previous year’s level of EUR 149.2 m. Acquisition of a major stake in the Macedonian electricity distributor The most important development during the period under review is undoubtedly, once again, the far-reaching expansion of our Group, which was the direct result of our acquiring a major stake in the Macedonian national electricity distribution company ESM AD Elektrostopanstvo na Makedonija (ESM). Within the framework of an international tender, EVN won its bid to purchase a 90.0% shareholding in this company. The closing of the transaction took place on April 7, 2006. The purchase price amounts to EUR 225 m. As a consequence of the acquisition of the new subsidiary, the number of EVN’s electricity customers has increased from 2.3 million to around 3.0 million, whereas annual electricity supply volumes have risen to approximately 18,000 GWh. “Austrian Electricity Solution” about to be implemented During the period under review, considerable progress was made in implementing the so- called “Austrian Electricity Solution”. As reported several times in the past, this concept foresees a partial fusion of the main electricity supply companies in Eastern Austria, which would lead to extensive synergies as well as a strengthening of the competitiveness of all the participating companies. After an agreement was reached in principle with Verbund AG, the required approval of the cartel authority is expected before the summer of this year. The participants in the “Austrian Electricity Solution” are the three partner companies of EnergieAllianz (EVN, Wienstrom and BEWAG), as well as Verbund AG. Effective at the end of April 2006, the Upper Austrian partner firms Energie AG and Linz AG will no longer be members of EnergieAllianz. At the same time, the Province of Upper Austria bought back EVN’s 9.33% shareholding in Energie AG, which EVN had acquired in the year 2002. According to the agreement, the purchase price amounted to EUR 178 m, and will be due in January 2007. As a result, pending approval by the cartel authority, there should be no more obstacles preventing the implementation of the “Austrian Electricity Solution”. The companies involved hope to achieve substantial strategic advantages, as well as ensuring the independent sup- ply of Austrian hydroelectric power to distribution companies and customers. Extensive activities in the field of alternative energy The field of power generation from alternative energy sources continues to expand dynamically. Two biomass-fired, combined cycle heat and power plants in Mödling and Baden, Lower Austria will be completed soon, and are scheduled to commence operations in the next few days. Each will boast an electrical power generating capacity of 5 MW and a thermal power plant production of 12 MW, thus comprising an important component of our diversified portfolio of energy sources. Following the completion of the Japons Wind Park at the end of 2005, the North Gänserndorf Wind Park commenced operations in early 2006. At present, EVN operates five wind parks generating green electricity, with a total capacity of 53 MW. Other projects in the field of wind power include the new Kettlasbrunn and Obritzberg-Statzendorf wind parks, which will commence operations in the next few weeks, too. Outlook EVN is expected to continue its very dynamic development, within the framework of a more favourable outlook in the overall economic environment. The major impetus for the optimistic future prospects is the first full-year consolidation of our Bulgarian subsidiaries, along with the high level of electricity generation in our own power stations and the further growth in the water, wastewater and waste incineration areas. According to Burkhard Hofer, Speaker of the EVN Executive Board, “Due to the solid results achieved in the 1st half-year 2005/06, as well as the positive development of all our business segments, we once again anticipate a substantial increase in sales revenues and earnings for the entire 2005/06 financial year. The market entry into Macedonia’s electricity industry signifies another important step in the implementation of our growth strategy, and will open up additional interesting perspectives in regards to our future business activities in South East Europe, namely in the fields of gas, heating, and especially in the drinking water, wastewater treatment and thermal waste incineration segments. For this reason, EVN is particularly interested in Macedonia’s hydroelectric power generating potential. EVN’s Letter to Shareholders for the 1st half year 2005/06 can be downloaded from www.investor.evn.at EVN in figures Key energy business indicators 2005/06 2004/05 Change HY. 1 HY. 1 Nominal % Electricity production (GWh) 2,982 2,549 433 17.0 thereof thermal power 2,655 2,186 469 21.4 thereof renewable energy 327 363 -36 -9.9 Distribution volumes Electricity (GWh) 7,919 5,685 2,234 39.3 thereof Austria 3,890 3,696 194 5.3 thereof South East Europe 4,029 1,989 2,040 – Gas (m m³) 1,019 957 62 6.4 Supply volumes to end customers Electricity (GWh) 7,496 5,316 2,180 41.0 thereof Austria 3,468 3,327 141 4.2 thereof South East Europe 4,029 1,989 2,040 – Gas (m m³)1) 629 568 61 10.7 Heating (GWh) 796 741 55 7.5 1) Incl. gas wholesales amounting to 57 m m³ (previous year: 40 m m³) Income statement (IFRS) 2005/06 2004/05 Change HY. 1 HY. 1 EUR m EUR m EUR m % Energy revenues 1,028.5 775.5 253.0 32.6 Environmental services revenues 135.0 73.1 61.9 84.6 Other revenues 16.3 9.1 7.2 79.6 Sales revenues 1,179.8 857.7 322.1 37.6 Changes in inventories and work performed and capitalised and other operating income 16.9 23.0 -6.1 -26.3 Electricity purchases and primary energy expenses -626.5 -413.1 -213.4 -51.7 Cost of material and services -134.5 -82.3 -52.2 -63.3 Personnel expenses -121.8 -106.4 -15.4 -14.5 Depreciation -83.2 -81.0 -2.2 -2.7 Other operating expenses -39.9 -32.8 -7.1 -21.7 Operating result (EBIT) 190.8 165.0 25.8 15.7 Result from associated companies at equity and other investments 89.9 45.3 44.6 98.5 Interest and other financial result -8.5 -14.4 6.1 41.5 Financial result 81.4 30.8 50.6 – Result before tax 272.2 195.8 76.4 39.0 Taxes on profit -48.5 -44.8 -3.7 -8.2 Result after tax 223.7 151.0 72.7 48.2 thereof Minority interests 29.0 1.8 27.2 – Period net result/share of EVN AG shareholders 194.7 149.2 45.5 30.5 EUR EUR EUR % Earnings per share1) 4.76 3.65 1.11 30.5 1) Diluted equals undiluted earnings (c)DGAP 30.05.2006 ————————————————————————— Language: English Issuer: EVN AG EVN Platz 2344 Maria Enzersdorf Österreich Phone: +43-2236-200-12294 Fax: +43-2236-200-82294 email: info@evn.at WWW: www.evn.at ISIN: AT0000741053 WKN: 074105 indices: ATX Listed: Amtlicher Markt in Wiener Börse; Freiverkehr in Berlin-Bremen, Stuttgart, München; Open Market in Frankfurt End of News DGAP News-Service —————————————————————————