EVN AG — Earnings Release 2012

May 31, 2012

News Details

Corporate | 31 May 2012 08:00

EVN AG: Business development in the first half-year 2011/12

EVN AG / Key word(s): Half Year Results/Half Year Results

31.05.2012 / 08:00

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(October 1st, 2011 - March 31st, 2012)

* Expansion of wind power capacity by three wind parks in Tattendorf,
Pöttelsdorf und Glinzendorf, Austria
* Put into operation of small-scale hydropower plant in Schaldorf, Austria
* Expansion of biomass capacity in the home market by three plants:
operating 57 plants EVN is currently the largest producer of natural
heat in Austria
* Put into operation of cogeneration plant in Plovdiv, Bulgaria
* Market entrance in Prague (CZ) and Serbia in the environmental services
business
* Issue of a corporate bond of EUR 300m and two private placements in a
total of EUR 125m
* Moody's confirms the long-term credit rating of 'A3' (stable outlook)
* Outlook 2011/12: Group net profit is expected to be at the same level of
the previous year
* Start of the share buyback programme

                             HY1                     Change

EURm 2011/12 in %

Revenue 1,690.9 +3.8
EBITDA 325.9 +0.5
Results from operating
activities(EBIT) 202.8 +2.9
Group net profit 209.1 +13.6

In the first half-year of 2011/12 (October 1st, 2011 - March 31st, 2012),
European spot market prices for base load and peak load electricity were
below the prior-year level, in spite of the ongoing high level of primary
energy prices. This is mainly attributable to the higher contribution of
renewable energy sources in the overall electricity generation mix. In
contrast, the valid forward prices for base load and peak load electricity
rose. The prices for CO2 certificates fell considerably below the
prior-year level. The average price for crude oil (Brent) was above the
prior-year level. The natural gas prices, which are largely linked to the
crude oil price, were almost one-fifth higher than in the previous year,
and the price for coal slightly increased.

Weather-related revenue development
EVN generated total revenue of EUR 1,690.9m, a rise of 3.8% from the
previous year. In the energy business the cold weather and the slight
increase of end customer prices in South Eastern Europe positively
influenced the revenue development. In the environmental services business
there was a revenue decrease due to lower project invoicing volume at the
reporting date

Stable EBITDA and improvement of operating result (EBIT)
Despite the increase of operating expenses by 4.6%, EVN's EBITDA of EUR
325.9m was up 0.5% compared to the prior-year. EBIT improved by 2.9%, to
EUR 202.8m despite an impairment loss on the biomass pilot plant in
Dürnrohr in the amount of EUR 8.0m.

Higher financial results and increased Group net profit
The financial results improved by 48.6%, to EUR 73.6m. This is mainly due
to the higher income from investments in equity accounted investees,
especially from RAG. In contrast, the higher interest expense and the lower
interest income had a negative impact. Taking account of the slightly lower
income tax, the profit for the period after income tax expense totalled EUR
235.6m, up 16.9%. Against the backdrop of the increased share of
non-controlling interests, the Group net profit amounted to EUR 209.1m, up
by 13.6%.

Lower cash flow from operating results
Stable capital structure and high equity ratio
In the first half-year of 2011/12, the gross cash flow amounted to EUR
258.5m, which was down by 12.2% compared to prior-year period. The net cash
flow from operating activities was down by 77.7%, to EUR 49.3m, which can
be attributed to the higher rise in working capital compared to the
previous year due to a stronger seasonal effect.
At EUR 7,248.8m, EVN's total assets rose by 5.5% compared to the balance
sheet date at September 30th, 2011. This increase is mainly due to an
increase in the valuation of the investments in equity accounted investees
and other investments. Equity in the reporting period amounted to EUR
3,337.3m, a rise of 5.1%. The equity ratio of 46.0% remained roughly on the
level of the last balance sheet day. The net debt of EUR 1,797.2m
corresponds to a gearing ratio of 53.9%.

Expansion of environmental friendly power production capacities in focus
In the first half-year 2011/12, the investment focus was on the expansion
of the power production capacities from renewable energy sources on the
home market. In Tattendorf and Pöttelsdorf twelve wind turbines now produce
environmental friendly electricity. In Glinzendorf the construction on the
wind park with nine wind turbines begun. In April 2012, the small-scale
hydropower plant in Schaldorf at the River Mürz was put into operation. In
Hagenbrunn and Langenlois EVN opened a biomass plant respectively and one
additional plant was taken over in Hollabrunn. In Steyr and in Markt
Piesting the constructions of two biomass plants begun in the reporting
period. Operating 57 biomass plants in Lower Austria, EVN is currently the
largest producer of natural heat in Austria.

Outlook
Following the first half-year of 2011/12, we confirm our outlook for the
entire 2011/12 financial year. From today's perspective, we expect the
results from operating activities as a whole basically to match the
previous year's performance in spite of the difficult and continuing
uncertain overall economic and energy industry situation. On balance, the
Group net profit is thus expected to be at the same level as in the
prior-year.

EVN's Letter to Shareholders HY. 1 2011/12 is available at
www.investor.evn.at.

End of Corporate News

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Language: English
Company: EVN AG
EVN Platz
2344 Maria Enzersdorf
Austria
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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