EVN AG — Earnings Release 2009

Feb 26, 2009

News Details

Corporate | 26 February 2009 08:00

EVN AG: Development of business in the first quarter of 2008/09

EVN AG / Quarter Results/Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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(October 1 - December 31, 2008)

Sales development in the Energy segment shaped by mild weather
Concession agreement signed to construct three hydropower storage
plants in Albania
Construction start on a wind park in the northeast of Bulgaria
Contract to build a sludge treatment plant in Lithuania
Win of a competitive tender for a seawater desalination plant in
Cyprus
Signing of takeover agreement for the cable network operator
B.net in Burgenland

                                     2008/09 
                                     Q. 1      Change 
                                     EUR m        in %

Revenue 736.0 +10.2
EBITDA 133.5 -2.4
Results from operating activities
(EBIT) 87.9 -4.5
Group net profit 54.8 -29.3

The business environment in the energy sector in the period October -
December 2008 was characterised by mild temperatures as well as increasing
wholesale electricity and extraordinarily high gas prices compared to the
same period of the previous year. Due to the international economic
crisis,the crude oil and coal prices were, however, well below the level of
the last year. The economic environment in Austria remained better compared
to that in the Eurozone. The economic growth in South-eastern Europe eased
in the last three months of 2008.

Under these circumstances, EVN raised its total revenue by 10.2%, or EUR
68.3m, to EUR 736.0m in the 1st quarter of the 2008/09 financial year
(October 1, 2008 - December 31, 2008). The main reason for this development
was the increased revenue in the Energy segment, which rose 9.2%, or EUR
57.6m, to EUR 684.5m. On the basis of several project acquisitions, the
Environmental Service segment achieved a considerable improvement in
revenue, which was up 28.8%, or EUR 10.2m, to EUR 45.5m.

Massive price increases for electricity purchases and primary energy
expenses as well as for the costs of other materials and services and
personnel expenses led to a decline in the results from operating
activities of 4.5% compared to the 1st quarter of 2007/08, to EUR 87.9m.
The EBIT margin therefore declined from 13.8% to 11.9%. The financial
results deteriorated from EUR 11.0m in the previous year to -EUR 13.9m in
the 1st quarter of 2008/09. This development is related to the lower income
from investments in associates as well as negative valuation effects due to
the financial crisis.

The profit before income tax in the 1st quarter of 2008/09 totalled EUR
73.9m, a decrease of 28.1% from the preceding year. Despite lower minority
interest, the Group net profit fell by 29.3%, or EUR 22.8m, to EUR 54.8m.

Since the last balance sheet date on September 30, 2008, the balance sheet
total of the EVN Group fell by 4.0%, or EUR 267.8m, to EUR 6,368.4m. Equity
decreased by 10.1%, or EUR 325.2m, to EUR 2,883.3m due to the change in the
market valuation of EVN's shareholding in Verbundgesellschaft without
recognition through profit or loss and the lower Group profit in the 1st
quarter of 2008/09. Accordingly, the equity ratio amounted to 45.3% as at
December 31, 2008. Taking account of the net debt of EUR 1,315.7m, the
gearing was 45.6% at the end of the 1st quarter of 2008/09.

Focus on renewable energy in South East Europe
Our activities in the renewable energy sector further expanded in South
East Europe in the 1st quarter 2008/09.

In December 2008, the concession agreement was signed for the construction
of three peak-load hydropower storage plants on the Devoll River in
Albania, a joint venture project with our Norwegian partner Statkraft. On
January 21, 2009, the concession agreement was ratified by the Albanian
Council of Ministers; the Albanian Parliament is also expected to approve
the project by the end of February 2009.

In October 2008, evn naturkraft started construction on a wind park project
encompassing 25 wind power generating facilities with a total capacity of
50 MW in Kavarna, in the northeast of Bulgaria, in cooperation with its
German partner Enertrag AG. Total investment volume is about EUR 95m, with
completion scheduled for the end of 2009.

Further significant growth of telecommunications activities
The telecommunications activities of the EVN Group geared up for a further
significant growth with the conclusion of an agreement on the part of
kabelsignal AG to acquire the Burgenland cable network operator B.net
Burgenland Telekom GmbH, including its Hungarian subsidiaries, as well as
the company Dataservice GmbH. Contingent upon anti-trust approval and the
fulfilment of several other conditions, the closing of the transaction is
already expected in February 2009.

New contracts in the Environmental Services segment
WTE was selected in November 2008 by the Lithuanian capital city of Vilnius
to construct a waste sludge treatment facility with a capacity of 600,000
population equivalents and with investments totalling EUR 45m. At the end
of December 2008, WTE acquired an additional project in Cyprus, winning a
contract to construct a seawater desalination plant near Limassol. The BOOT
project will be operated by WTE for a period of 20 years after a two-year
construction period.

Outlook
In the 2008/09 financial year, the development of the EVN Group will be
negatively impacted by the financial crisis, which is increasingly having a
recessionary effect on the real economy. In addition to potential
decreasing sales volumes in the Energy segment, EVN's strategic investments
in companies operating in the primary energy sector are also strongly
affected by the price decline on raw material markets, and will likely
generate lower profit contributions. A negative development is also
expected in the valuation of financial assets. Even if the current economic
recession will lead to corresponding effects on the results of the EVN
Group, from today's perspective the company will be able to continue its
operational business development.

The complete Letter to Shareholders Q. 1 2008/09 is available at
www.investor.evn.at.

EVN AG
Head of Corporate Communications
EVN Group

Stefan Zach
EVN Platz
2344 Maria Enzersdorf
phone: +43 2236 200-122 94
fax: +43 2236 200-822 94
mobile: +43 676 810 32 294
stefan.zach@evn.at
www.evn.at

26.02.2009 Financial News transmitted by DGAP

Language: English
Issuer: 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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