EVN AG — Earnings Release 2015

Feb 26, 2016

EVN Conference Call Q. 1 2015/16 Results

26 February 2016

• Increase in electricity generation through use of thermal power plants to protect network stability
• Cornerstone ceremony for the wastewater treatment plant in Prague
• Stable EBITDA; EBIT slightly below last year's Q1
• Increase in Group net result

Key financials 2015/16

	2014/15	+/–
EURm	Q1	in %
Revenue	573.3	–4.4
EBITDA	185.0	0.1
Depreciation and amortisation	–65.5	–3.1
Effects from impairment tests	–	–
EBIT	119.4	–1.4
Financial results	–16.7	31.5
Group net result	78.8	7.9
Net cash flow from
operating activities	93.2	0.8
Earnings per share	0.44	0.8

Decrease in revenue

• − Rise in electricity generation
• − Decline in natural gas trading activities
• − Volume and price related declines in Bulgaria
• Stable EBITDA, EBIT slightly below last year's Q1; increase in group net result
• − OPEX reduction

Improved financial result

Solid balance sheet structure, reduced net debt

• Improvement of equity ratio to 41.2% (30.09.2015: 39.8%)
• Reduction of net debt to EUR 1,181.6m (30.09.2015: EUR 1,230.9m)
• Gearing decreased to 44.3% (30.09.2015: 47.5 %)

EBITDA development by segments

Generation

	2014/15	+/–
Electricity generation volumes (GWh)	Q1	in %
Total	1.458	25,2
Renewable energy sources	350	-12,9
Thermal energy sources	1.108	45,2

Financial performance (EURm)	2014/15 Q1	+/– in %
Revenue	58,0	–1.9
EBITDA	28,8	–4.9
EBIT	15,1	–9.9

Increase of electricity production

• − Lower wind and water flows
• − Greater use of thermal power plants to protect network stability

Decline in EBITDA and EBIT

• − Revenue remained nearly unchanged
• − EBITDA influenced by reduced results from equity accounted investees

End customer prices1)	+/- in %	Adjustment
Electricity and gas	-5.0%	01.10.2015
Electricity and gas	-10.0%	01.10.2014
Sales volumes to	2014/15	+/–
end customers (GWh)	Q1	in %
Electricity	1,794	–0.6
Natural gas	1,788	0.1
Heat	574	1.5

	2014/15	+/–
Financial performance (EURm)	Q1	in %
Revenue	152.2	–2.3
EBITDA	39.4	30.9
EBIT	35.0	35.1

Different development of sales volumes

• − Slight increases in natural gas and heat sales volumes
• − Small decline in electricity sales volumes (increase in Austria was more than offset by reduced sales in Germany)

Revenue declined, EBITDA and EBIT increased

• − Declining natural gas trading activities
• − Increased results from equity accounted investees

Development of tariffs1)	+/- in %	Adjustment
Electricity	11.0%	01.01.2016
Natural gas	11.0%	01.01.2016
Network distribution	2014/15	+/–
volumes (GWh)	Q1	in %
Electricity	2,147	2.0
Natural gas2)	5,395	20.9
	2014/15	+/–
Financial performance (EURm)	Q1	in %
Revenue	127.9	0.1
EBITDA	73.5	8.4
EBIT	46.2	9.0

Increase in network distribution volumes

• − Higher electricity and natural gas distribution volumes across all customer segments
• − Additional positive volume impact on gas distribution from use of EVN's gas-fired power plants

Improvement in EBITDA and EBIT

• − Lower operating expenses
• − Investment driven increase in depreciation

Continued investment focus on supply security

− Network Infrastructure Austria accounts for almost 50% of EVN's total investments

End customer prices1)		+/– in %	Adjustment
Bulgaria	electricity	–0.4%	01.08.2015
	heat	–0.7%	01.10.2015
Macedonia	electricity	–0.3%	01.07.2015
Key energy business		2014/15	+/–
indicators (GWh)		Q1	in %
Electricity generation volumes		94	–21.4
Network distribution volumes2)		3,445	–1.7
Heat sales volumes		58	–19.2
		2014/15	+/–
Financial performance (EURm)		Q1	in %
Revenue		252.4	–7.9
EBITDA		14.7	–6.0
EBIT		–0.8	–

Negative development of key energy business indicators

• − Decline in electricity production
• − Weather-related decline of electricity network distribution volumes and heat sales volumes

Revenue, EBITDA and EBIT decrease

• − Volume and price related declines
• − Lower operating expenses

1) Average; household sector; according to regulators in Bulgaria and Macedonia

2) Energy sales volumes in Bulgaria and Macedonia fairly equal to network distribution volumes

	2014/15	+/–
Financial performance (EURm)	Q1	in %
Revenue	48.2	4.2
EBITDA	11.9	–59.0
EBIT	5.5	–75.6

Increase in revenue

• − Higher revenue from international project business and drinking water supplies
• − Partly offset by reduced revenue from Lower Austrian waste incineration business

Decrease in EBITDA and EBIT

− Last year positive one-off from sale of sodium hypochlorite plant in Moscow

Progress in the international projects business

• − Finalisation of the construction works of wastewater treatment projects in Poland and Romania
• − Receipt of building permit and cornerstone ceremony for the wastewater treatment plant in Prague

Cash flow

	2014/15	+/–
EURm	Q1	in %
Gross CF	182.1	9.3
Net CF from operating activities	93.2	0.8
Net CF from investing activities	–58.5	–
Net CF from financing activities	–26.8	–
Net change in cash
and cash equivalents	7.9	–

Increase of gross cash flow

• − Stronger operating performance
• Operating cash flow at prior year's level
• − Due to changes in working capital
• Changes in the cash flow from investing as well as from financing activities influenced by last year's sale of sodium hypochlorite plant

Outlook and strategy 2015/16

• Group net result for 2015/16 is expected to remain largely stable
• EVN's strategy remains unchanged
• − Commitment to integrated business model
• − Focus on supply security through ongoing network expansion
• − Further increase of renewable generation capacities in Lower Austria
• − Consolidation of energy business in South East Europe

Stefan Szyszkowitz CFO

Gerald Reidinger

Head of Controlling and Investor Relations

Alexander Sipek

Investor Relations Officer

Matthias Neumüller

Investor Relations Officer

Investor information on the web

www.evn.at www.investor.evn.at www.responsibility.evn.at E-mail: investor.relations@evn.at

EVN AG

Headquarters EVN Platz 2344 Maria Enzersdorf

Financial calender

www.investor.evn.at/financial-calender Next event: Results HY. 1 2015/16, 25 Mai 2016

Disclaimer

Certain statements made in this presentation may constitute "Forward-Looking Statements" within the meaning of the U.S. federal securities law. Forwardlooking information is subject to various known and unknown risks and uncertainties. These include statements concerning our expectations and other statements that are not historical facts.

The Company believes any such statements are based on reasonable assumptions and reflect the judgement of EVN's management based on factors currently known by it.

No assurance can be given that these forward-looking statements will prove accurate and correct, or that anticipated, projected future results will be achieved.

For additional information regarding risks, investors are referred to EVN's latest Annual report.