EVN AG — Earnings Release 2009

Dec 10, 2009

News Details

Corporate | 10 December 2009 08:00

EVN AG: annual results 2008/09

EVN AG / Final Results/Final Results

10.12.2009

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(October 1, 2008 - September 30, 2009)

Positive revenue and EBIT development despite difficult economic
conditions
Lower income from investments as a result of the price decline for
primary energy
District heating transmission pipeline to St. Pölten completed
Start of construction of the trans-regional gas transport
pipeline 'Südschiene' in Lower Austria
Takeover of the cable network operator B.net in Burgenland
Hard coal fired power plant in Duisburg-Walsum before start-up
Ground-breaking ceremony for the construction of three hydropower storage
plants in Albania
Concession to distribute and supply natural gas on the Croatian Adriatic
coast
Strong business performance in the Environmental Services segment,
expansion in the Baltic region, new contract in Montenegro

                                     2008/09          Change
                                       EUR m            in %

Revenue 2,727.0 +13.8
EBITDA 373.4 +3.1
Results from operating activities (EBIT) 175.2 +5.2
Group net profit 177.9 -4.8

The energy sector environment in the 2008/09 financial year (October 1,
2008 - September 30, 2009) was characterised by higher temperatures in
Austria and Macedonia. In contrast, the temperatures in Bulgaria were lower
compared to the long-term average. As a consequence of the economic
recession, primary energy and electricity prices as well as the costs of
CO2 emission certificates declined considerably in the course of the
2008/09 financial year. Due to the recession, electricity consumption has
declined significantly since the fourth quarter of 2008. However, sales
volumes of the EVN Group declined more moderately due to its stable
customer structure in Lower Austria and in the south-eastern Europe region.

Strong results despite unfavourable economic conditions
Against this backdrop, the EVN Group succeeded in increasing its total
revenue by 13.8%, to EUR 2,727.0m. The revenue improvement in the Energy
segment was primarily due to upward price adjustments for electricity, gas
and heat, which in turn were made necessary by the strong rise in energy
procurement prices in previous periods. Business development in the
Environmental Services segment was characterised by a higher volume of
orders received, which led to a revenue increase. Energy segment's share of
total revenue amounted to 90.2%, revenue generated by the Environmental
Services segment climbed to a share of 8.7% of total revenue. Revenue
generated outside of the Austrian market corresponds to a 38.4% share of
revenue generated abroad.

Due to energy quantities purchased at the higher market prices prevailing
in previous periods as a means of ensuring the reliability and security of
energy supplies, electricity purchases and primary energy expenses rose by
20.2% compared to the previous year to EUR 1,653.2m. Despite the difficult
business environment, EBITDA climbed to EUR 373.4m, up 3.1% and the
operating results (EBIT) rose by 5.2% to EUR 175.2m. The financial results
in the 2008/09 financial year were significantly below the previous year's
figure, decreasing by 26.2% to EUR 50.8m. The higher dividend distributed
by Verbundgesellschaft could not compensate for the lower profit
contribution from EVN investments related to the declining earnings
contributions of investments in associates included at equity, particularly
Rohöl-Aufsuchungs AG, for which reason the total profit contribution from
EVN investments was down 31.4%, or EUR 43.0m, to EUR 94.0m. Taking the
above-mentioned changes in the financial results into account, the profit
before income tax was down 4.0% to EUR 226.0m. The net profit of EVN
decreased by 4.8% to EUR 177.9m. This corresponds to earnings per share of
EUR 1.09 (previous year: EUR 1.14).

The dividend policy of EVN is oriented towards ensuring a sustainable
development of the company. Accordingly, the Executive Board will propose
an unchanged dividend of EUR 0.37 per share for the 2008/09 financial year
to the Annual General Meeting on January 21, 2010, despite the slight
decline in EVN earnings.

Results improvement in Energy and Environmental Services segments
The revenue improvement in the Energy segment, amounting to 12.7% to EUR
2,459.3m, was primarily due to higher electricity and heat sales volumes,
as well as upward price adjustments. The EBIT improvement in Business units
Generation and Networks more than compensated for the decline in Supply and
South East Europe. All in all, operating results (EBIT) increased by 2.3%
to EUR 158.7m in Energy segment. Business development in the Environmental
Services segment was characterised by a higher volume of orders received,
which led to a revenue increase of 27.9% to EUR 236m. EBIT of the
Environmental Services segment could be improved by 8.5% to EUR 27.5m.

Outlook
EVN anticipates a slight increase in revenue and stable results from
operating activities in the 2009/10 financial year. The financial results
are likely to remain at the same level as the current period under review,
due to the unchanged lower earnings contribution from investments operating
in the field of primary energy. On balance, despite the expected difficult
macroeconomic environment, the Group net profit will likely remain stable.
EVN is striving to maintain its attractive dividend policy in line with its
value-oriented growth strategy.

The company also plans a slight rise in its investments in intangible
assets and property, plant and equipment in the 2009/10 financial year. The
large projects being implemented at EVN's facilities in
Dürnrohr/Zwentendorf within the context of EVN's Energy Concept for the
Lower Austrian Central Region are already finished or will soon be put into
operation. These projects encompass an expansion of capacity in the waste
incineration plant, the expansion of the power station in Dürnrohr to
process heat generated by the biomass and waste incineration facilities and
construction of the district heating pipeline from Dürnrohr to St. Pölten.
Investments in Lower Austria's electricity and gas networks will be kept at
a high level in order to ensure reliable and secure energy supplies in the
face of growing demand. The investment programme to modernise and expand
the network infrastructure in South East Europe will continue.

The entire Annual Report 2008/09 is available at ttp://www.investor.evn.at.

EVN Sustainability Report 2008/09
According to our traditions, the Sustainability Report of EVN has been
published together with the EVN Annual Report. It provides an insight into
the various EVN initiatives; giving both an account of the progress made in
terms of our commitment to sustainability and outlining the path which lies
before us. In order to deliver comprehensive and transparent information to
all stakeholders, the EVN Sustainability Report follows the guidelines of
the Global Reporting Initiative (GRI). The GRI Application Level A+ was
reached again.

As far as EVN is concerned, Corporate Social Responsibility (CSR) means
working voluntarily towards making a contribution towards sustainable
development. Here, EVN's sustainable development means a continuous process
involving all areas of the company, which requires clear objectives to be
formulated. The corporate objective is therefore expressed as one of laying
the foundations for sustainable corporate management, originating from
Lower Austria, and extending to the subsidiaries in Bulgaria and Macedonia.
Many EVN areas of activity are sustainable in themselves and define to a
large extent their operational everyday business.

For more information on EVN and its focus on responsibility or to download
the EVN Sustainability Report, please refer to
http://www.evn.at/Responsibility.aspx.

EVN AG
Corporate Communications
EVN Konzern

Stefan Zach, MAS
EVN Platz
2344 Maria Enzersdorf
Tel.: +43 2236 200-122 94
Fax: +43 2236 200-822 94
Mobil: +43 676 810 32 294
stefan.zach@evn.at
www.evn.at

10.12.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: EVN AG
EVN Platz
2344 Maria Enzersdorf
Österreich
Phone: +43-2236-200-12294
Fax: +43-2236-200-82294
E-mail: info@evn.at
Internet: www.evn.at
ISIN: AT0000741053
WKN: 074105
Indices: ATX
Listed: Foreign Exchange(s) Wien

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