EVN AG — Earnings Release 2010

Aug 26, 2010

News Details

Corporate | 26 August 2010 08:00

EVN AG: Development of business in the first three quarters of 2009/10

EVN AG / Quarter Results/Quarter Results

26.08.2010 08:00

Dissemination 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, 2009 - June 30, 2010)

  Positive sales development in the energy business
  Opening of a photovoltaic park in Bulgaria
  Project development at the hydropower plant on the Arda River in 
    Bulgaria
  Wastewater purification plant in Stettin in operation
  Completion and start of operational management of the wastewater 
    purification plant in Istanbul
  Capital increase planned in the second half of 2010 for up to 
    10.0% of share capital
  Positive outlook confirmed for the 2009/10 financial year

                                   2009/10 
                                      Q1-3            Change
                                     EUR m              in %

Revenue 2,182.8 +1.5
EBITDA 365.7 +12.6
EBIT 194.1 +8.3
Group net profit 204.9 +16.7

Compared to the same period in the previous year, the energy sector
environment in the first three quarters of 2009/10 (October 1, 2009 - June
30, 2010) was characterised by cold weather conditions in Austria and
Macedonia and higher temperatures in Bulgaria. Primary energy and wholesale
electricity prices as well as the costs of CO2 emission certificates
remained below the previous year's level.

Slight increase in revenues, markedly improvement in EBIT and a strong
growth of Group net profit
In the first three quarters 2009/10, EVN's total revenue rose by 1.5% to
EUR 2,182.8m. Whereas in Lower Austria electricity prices for end customers
remained stable in the reporting period, gas prices for end customers could
be reduced by about 7.0% on December 1, 2009, following previous selling
price decreases in January and March 2009. In Bulgaria, electricity prices
for end customers declined by 1.0% as of July 1, 2009. In comparison
electricity prices in Macedonia increased by 10.0% as of January 2010. The
comparatively cold weather condition led to greater energy demand in Lower
Austria, whereas in South East Europe sales volumes for electricity and
heat were slightly below the previous year's level. All business areas
within the energy business contributed to the positive revenue development
with the exception of the Generation Segment. Due to the declining market
prices and the lower volume of electricity generated by renewable energy
sources revenues in this segment decreased slightly. Revenues in the
Environmental Services Segment slightly increased as a result of the
ongoing operation of the waste incineration plant in Dürnrohr and the
completion of the expansion project involving a third line in December
2009.

Despite higher sales volumes in the energy business, the item 'Electricity
purchases and primary energy expenses' decreased. This can be attributed to
the declining wholesale prices for electricity and primary energy. The item
'Cost of materials and services' rose slightly due to the start-up of the
third waste incineration line in Dürnrohr and the first full year
consolidation of the cable network operator B.net in Burgenland. Despite a
slight increase in personnel expenses, the rise in depreciation and
amortisation and despite of slightly higher other operating expenses, EBIT
rose by 8.3% to EUR 194.1m compared to the previous year's level.

The financial results developed very positively and amounted to EUR 72.0m,
up 59.8% compared to the prior-year figure. Income from investments in
associates included at equity rose and income from other investments was
above the previous year's level, due to the higher dividend distributed by
Verbund AG. Interest income improved and the item 'Other financial
results', which had been negatively affected in the previous year by the
financial and economic crisis, also made a positive contribution.

Accordingly, the profit before income tax totalled EUR 266.2m, a rise of
18.7% from the previous year's level. Hence, Group net profit amounted to
EUR 204.9m, an increase of 16.7%.

The gross cash value rose in the first three quarters 2009/10 by 5.5% to
EUR 422.5m. Since the balance sheet date on September 30, 2009, the balance
sheet total of EVN decreased by 1.9% to EUR 6,570.0m. Equity declined by
4.0% to EUR 3,002.3m. The equity ratio at the quarterly balance sheet date
amounted to 45.7%. Taking account of the net debt of EUR 1,415.9m, the
gearing at the reporting date of June 30, 2010 was 47.2%.

Project completions and new projects for the Environmental Services Segment
On May 14, 2010, the Pomorzany wastewater purification plant in Stettin,
Poland, was put into operation. The turn-key installation is conceived for
400,000 inhabitants and also includes a sludge drying and incineration
facility. EVN was the lead manager in the consortium with responsibility
for the planning, implementation and start-up of the turn-key installation.
Furthermore, EVN, in the role as the head of a consortium, completed a
wastewater treatment plant for two million inhabitants in Istanbul, Turkey,
at an investment volume of EUR 108.6m, and assumed responsibility for
operating the plant in June 2010 for a period of five years. In December
2009, EVN was awarded a contract to construct a waste treatment plant in
Moscow, and in August 2010, the annual capacity of 700,000 tonnes was
stipulated with the City of Moscow. The project is being realised as a BOOT
model at an investment volume of EUR 575m.

Criteria and time framework defined to reach agreement with Macedonian
government
Against the backdrop of the arbitration proceedings against the Republic of
Macedonia initiated by EVN AG on May 8, 2010, to protect its investments,
the Macedonian government and EVN agreed on July 28, 2010, to
systematically seek a joint solution to all open issues and problems
between the two parties. The definition of criteria and a time framework
for implementation of this agreement should enable intensive bilateral
negotiations between the two parties in the next few months to create a
win-win situation for the government, the citizens as well as EVN and thus
create greater trust.

Preparations underway for planned capital increase to strengthen company's
financial resources
On June 23, 2010, the Executive Board of EVN announced to take the steps
necessary to carry out a capital increase of up to 10% of the share capital
in the second half of 2010, as authorized by the Annual General Meeting
held on January 21, 2010. The aim of the intended capital increase is to
strengthen EVN's capital resources. For this purpose Deutsche Bank,
Raiffeisen Controbank and Société Générale have been appointed to review
the feasibility of such transaction. Such a capital increase is
contemplated still within this year and is subject to approval by the
Supervisory Board of EVN AG and requires the approval of a prospectus by
the Austrian Financial Market Authority, as well as a favourable capital
market environment.

Outlook
After the first three quarters 2009/10, we expect - from today's
perspective - a Group net profit for 2009/10 as a whole exceeding the
comparable figure for the previous business year, despite difficult and the
continuous uncertain development of overall economic conditions and high
price volatility in the energy sector.

The complete Letter to Shareholders Q1-3 2009/10 is available at
www.investor.evn.at.

Disclaimer
This information does not constitute or form part of any prospectus or
offer document or solicitation or invitation of any offer to exchange for
or to buy any securities nor shall it or any part of it form the basis of
or be relied on in connection with any contract or commitment whatsoever. A
public offer may only be made in Austria after publication of a prospectus
prepared in accordance with the provisions of the Austrian Capital Markets
Act and approved by the Austrian Financial Market Authority. Any securities
orders received prior to the commencement of a public offer will be
rejected. If a public offer is made in Austria, a prospectus prepared in
accordance with the provisions of the Austrian Capital Markets Act and the
Stock Exchange Act will be published and will be available free of charge
at EVN AG, 2344 Maria Enzersdorf.

EVN AG
Corporate Communications
EVN Group

Stefan Zach
EVN Platz
2344 Maria Enzersdorf
Austria
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

26.08.2010 Ad hoc announcement, Financial News and Press Release 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 (Amtlicher Handel / Official Market)

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