EVN AG — Earnings Release 2019

Feb 28, 2019

EVN conference callQ. 1 2018/19 results

28 February 2019

Highlights Q. 1 2018/19

Development in line with expectations

• Return in Group net result for FY 2018/19 to the long-term level according to outlook
• After two exceptionally positive years (influenced by non-recurring effects)
• Split of German-Austrian electricity price zone as of 1 October 2018
• Wind expansion on track – capacity increased to 336 MW
• Investment focus on regulated and stable activities
• Annual investments of up to EUR 400m over the coming years
• Thereof ~EUR 300m for networks, renewables and water supplies in Lower Austria
• Outlook for FY 2018/19 confirmed

Key financials Q. 1 2018/19

	Q 1 2 0 1 8 / 1 9	/– +
	E U Rm	%
Re ve nu e	5 9 6. 0	0. 6
E B I T D A	1 6 3. 2	-2 9. 5
d a ia io isa io De t t t p re c n a n m or n	-6 5. 6	-1 0
f fe fro im irm E ts t te ts c m p a en s	-0 2	7 2. 9
E B I T	9 7. 4	-4 1. 3
ina ia l re l F ts nc su	-1 5. 5	-3 1. 9
l Gr t r t ou p ne es u	5 9. 1	-4 7. 3

h f low fro Ne t c as m
ing iv i ies t t t op er a a c	-7 6	–
1) Inv tm ts es en	9. 7 5	2 8. 5
de b Ne t t	1, 0 3 3. 2	-8 8
	%
2) i io Eq ty t u ra	5 3. 0	3. 6

1)In intangible assets and property, plant and equipment

2)Changes reported in percentage points

Different developments in revenue

• Increase in renewable generation and heat sales
• Price- and volume-related decline in the Network Segments

Lower EBITDA

Lower earnings contribution from EVN KG (higher procurement costs and valuation of hedges)

Decline in EBIT and Group net result

Solid balance sheet structure

• Net debt remains low at EUR 1,033.2m despite slight increase as compared to 30 September 2018 (EUR 963.7m)
• Gearing increased from 23.5% to 25.9%

Conference call Q. 1 2018/19 results

EBITDA development by segments

Generation

	Q 1 2 0 1 8 / 1 9	/– +
le ic i io lu E t ty t c r g e ne ra n vo m e s	h GW	%
l To ta	1, 3 5 0	-9 6
b le Re ne w a en er g y so ur ce s	2 4 7	0. 8 -1
he l e T rm a ne rg y so ur ce s	9 2 3	-9 0
	Q 2 0 8 9 1 1 / 1	/– +
in ia l p fo F a nc e r rm a nc e	EU Rm	%
Re ve nu e	9 1. 7	2 2. 0
E B I T D A	4 5. 2	-5 8
E B I T	3 0. 0	-1 6. 0

The thermal waste utilisation plant in Zwentendorf/Dürnrohr that was previously held in the Environment Segment was assigned to the Generation Segment beginning with Q. 4 2017/18

Decline in electricity generation

• Y-o-y decrease in water flows offsets increase in wind generation
• 430 MW contractual reserve capacity for network stabilisation (previous year: 1,090 MW)
• Increase in electricity prices

Higher revenue y-o-y

Renewable generation benefits from increase in electricity prices

Decline in EBITDA and EBIT

Increase in primary energy expenses

Energy

l lu S t a e s v o m e s o	Q 1 2 0 1 8 / 1 9	/– +
d t e n c u s o m e r s	h G W	%
l i i E t t e c r c y	9 1, 1 4	9. 5
l N t a u r a g a s	2 3 1, 7	9 -7
H t e a	6 4 2	-2 6

	Q 1 2 0 1 8 / 1 9	/– +
l f i i F n a n c a p e r o r m a n c e	E U Rm	%
R e v e nu e	6 9. 1 5	2. 1 1
E B I T D A	-6 0	–
E B I T	-1 0. 8	–

Different development of energy sales volumes

• Higher electricity sales volumes
• Weather-related decline in natural gas and heat sales volumes

Higher revenue; EBITDA and EBIT below previous year

Sales activities in EVN KG (at equity consolidated with operational nature) suffered from valuation of hedges and higher procurement costs

Networks

k d i i b i N t t t e w o r s r u o n	Q 1 2 0 1 8 / 1 9	/– +
lu v o m e s	h G W	%
l i i E t t e c r c y	2, 2 6 3	0. 1
1) l N t a u r a g a s	5, 3 3 0	-9 1
	Q 1 2 0 1 8 / 1 9	/– +
i i l f F n a n c a p e r o r m a n c e	E U Rm	%
R e v e nu e	2. 8 1 5	-4 5
E B I T D A	8 0. 3	-1 8. 3
E B I T	4 9. 9	-2 7. 4

1) Including network sales to EVN's power stations

Different development of network distribution volumes

• Slight rise in electricity distribution volumes
• Decline in natural gas due to the reduced use of natural gas-fired power plants andhigher temperatures

Revenue below previous year

Negative volume and price effects

EBITDA and EBIT declined y-o-y

• Higher upstream network costs
• New 5-year regulatory period for electricity distribution networks as of 1 January 2019

South East Europe

b i K e e n e r g s n e s s y y u	Q 1 2 0 1 8 / 1 9	/– +
d i i t n c a o r s	G h W	%
le lu ic i io E t ty t c r g e ne ra n vo m e s	0 6 1	3 5.
k d is i bu io lu Ne tw t t o r r n vo m e s	3, 6 7 9	1. 9
le le lu E ic i t ty c r s a s v o m e s	3, 1 0 3	5. 3
le lu He t a s a s v o m e s	7 5	9. 3

	Q 2 0 8 9 1 1 / 1	/– +
f i i l F n a n c a p e r o r m a n c e	E U Rm	%
Re ve nu e	2 3 1. 0	-3 7
E B I T D A	2 3. 1	4 8. 1
E B I T	7. 6	–

• Income-neutral change of calculation method for "green electricity mark-up"
• Corresponding decrease in revenue and procurement costs
• Higher network and energy sales volumes
• Improvement in EBITDA and EBIT
• Lower write-offs of receivables

Environment

	Q 2 0 8 9 1 1 / 1	/– +
f i i l F n a n c a p e r o r m a n c e	E U Rm	%
R e v e nu e	2 0. 2	8 -5 1.
E B I T D A	8. 4	1 9. 4
E B I T	5. 5	–
l l F i i t n a n c a r e s s u	-1 2	–
l b f i R t t e s u e o r e n c o m e a x	4. 4	–

The thermal waste utilisation plant in Zwentendorf/Dürnrohr that was previously held in the Environment Segment was assigned to the Generation Segment beginning with Q. 4 2017/18

Decline in revenue

Less dynamic development of international project business

EBITDA and EBIT above prior year

Positive impact from wastewater project in Zagreb

Cash flows

	Q. 1 2 0 1 8 / 1 9 EU Rm	/– + in %
h f low Gr os s c as	2 0 0. 7	3. 9 -1
h f low fro ing iv i ies Ne t c t t t as m op era a c	6 -7	–
h f low fro inv ing iv i ies Ne t c t t t as m es a c	-2 8. 7	8 2. 4
h f low fro f ina ing iv i ies Ne t c t t as m nc a c	-3 5. 7	–
ha in h d h Ne t c ng e ca s an ca s
len iva ts eq u	-7 2. 1	-2 4. 5

CF from operating activities

Changes in working capital

CF from investing activities

Ongoing high investments in regulated and stable activities contrasted by network subsidies and sale of securities held in funds

CF from financing activities

Increase in the scheduled repayment of financial liabilities

Development of Group net result

• Group net result for 2017/18 positively influenced by valuation of hedges
• Expected Group net result for 2018/19 in the range of EUR 160m to EUR 180m
• Factors that could influence the Group net result include
• Regulatory background
• Proceedings currently in progress in Bulgaria
• Remaining proceeding over the Walsum ¹⁰ power plant project
• Progress on activities in Moscow

Contact details

Stefan Szyszkowitz, CEO

• IR contact partners:
• Gerald Reidinger
• Matthias Neumüller
• Doris Lohwasser
• IR contact details
• E-mail: investor.relations@evn.at
• Phone: +43 2236 200-12128

• Phone: +43 2236 200-12473

• Information on the internet

• www.evn.at
• www.investor.evn.at
• www.responsibility.evn.at
• Headquarters of EVN AG
• EVN Platz 2344 Maria Enzersdorf

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.