EVN AG — Earnings Release 2020

Feb 27, 2020

EVN conference call Q. 1 2019/20 results

27 February 2020

Highlights Q. 1 2019/20

• Solid business development in line with expectations
  • − EBITDA (+16.8%), EBIT (+21.9%) and Group net result (+40.3%)
• Recovery of EVN KG
  • − Normalisation of the operating business in energy sales
  • − Lower effects from the valuation of hedges
• Networks Segment negatively affected by lower tariffs and volume effects
• Sound development in South East Europe
• Share of renewable electricity generation rises to 49.7% (previous year: 33.6%)
• Contract awarded for Kuwait wastewater treatment project
• Outlook for FY 2019/20 confirmed

Wastewater treatment project Umm Al Haymann (Kuwait)

Layout of wastewater treatment plant

1) Shareholders: State-owned Kuwaiti institutions (80%), WTE (20%); WTE's equity contribution (~EUR 30m) is covered by a state guarantee from the Federal Republic of Germany

• Wastewater treatment plant (PPP)

  • − Capacity: 500,000 m3/d (~1.7m people)
  • − EPC contractor: WTE (100%)

• − Contract value: ~EUR 600m

• − Construction period: 2.5 years
• − Financing: equity1) (20%), bank debt (80%)
• Sewage infrastructure (DBO)
  • − Pipes (450 km), pumping stations etc.
  • − EPC contractor: WTE (67.6%) and two local partners
  • − Contract value: ~EUR 950m
  • − Construction period: up to 4 years
  • − Financing through State of Kuwait (100%)

Key financials Q. 1 2019/20

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

h f low fro Ne t c as m
ing iv i ies t t t op er a a c	-2 8. 9	–
1) Inv tm ts es en	7 6. 2	-4 2
de b Ne t t	1, 1 2 7. 4	9. 1
	%
2) i io Eq ty t u ra	8 5 5.	2. 8

1) In intangible assets and property, plant and equipment

2) Changes reported in percentage points

Different developments in revenue

• − Positive trend from South East Europe and international project business
• − Decline in thermal generation and in the Network Segments

EBITDA, EBIT and Group net result above previous year

− Recovery of EVN KG

− Positive non-recurring effect at RAG

Solid balance sheet structure

• EVN has a net debt level of ~EUR 1bn (subject to seasonal fluctuations)
• Increase in Q. 1 2019/20 includes effect of EUR 69.7m in connection with initial application of IFRS 16
• Gearing increased from 22.0% to 25.4%

EBITDA development by segments

Conference call Q. 1 2019/20 results

Generation

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

Decline in electricity generation

• − Increase in renewable generation (additional wind capacity and y-o-y increase in water flows)
• − Lower thermal generation (closure of coalfired power plant in Dürnrohr; less demand for network stabilisation)

Revenue, EBITDA and EBIT below previous year

Energy

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

	Q 1 2 0 1 9 / 2 0	/– +
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	3 1 1. 1	-2 2. 7
E B I T D A	3 1. 7	–
E B I T	2 6. 7	–

Different development of energy sales volumes

• − Increase in electricity sales volumes due to higher supplies to large customers
• − Competition-related decline in natural gas

Revenue below previous year

− Decline in marketing of own generation

Improvement in EBITDA and EBIT

• −Lower usage of primary energy carriers
• −Recovery of EVN KG

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 9 / 2 0	/– +
l v o u m e s	h G W	%
l E i i t t e c r c y	2, 2 8 4	0. 9
1) l N t a u r a g a s	4, 8 9 8	-8 1
	Q 2 0 9 2 0 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	1 4 4. 7	-5 3
E B I T D A	6 8. 6	-1 4. 7
E B I T	3 6. 2	-2 7. 4

1) Including network sales to EVN's power stations

Different development of network distribution volumes

− Slight rise for electricity

− Decline in natural gas due to lower use of thermal power plants for network stabilisation

Revenue below previous year

− Negative volume and price effects

EBITDA and EBIT declined y-o-y

South East Europe

bu Ke in e ne rg s e s s y y	Q 1 2 0 1 9 / 2 0	/– +
d in ic t a o r s	h G W	%
le ic i io lu E t ty t c r g e ne ra n vo m e s	1 0 1	-4 3
k d is i bu io lu Ne tw t t o r r n vo m e s	3, 4 8 3	-5 3
le le lu ic i E t ty c r s a s v o m e s	2, 9 4 0	-5 3
le lu He t a s a s v o m e s	6 1	-1 7. 8

	Q 1 2 0 1 9 / 2 0	/– +
in ia l p fo F a nc e r rm a nc e	EU Rm	%
Re ve nu e	2 3 8. 6	3. 3
E B I T D A	3 3. 3	4 4. 5
E B I T	1 5. 5	–

Network and energy sales volumes declined y-o-y

− Significantly milder temperatures

Improvement in EBITDA and EBIT

− Reduction in procurement costs for network losses in Bulgaria

Environment

	Q 1 2 0 1 9 / 2 0	/– +
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	3 6. 9	8 2. 5
E B I T D A	5. 5	-3 3. 8
E B I T	2. 5	-5 5. 0
l l F i i t n a n c a r e s s u	-1 1	1. 5
l b f R i t t e s u e o r e n c o m e a x	1. 4	-6 9. 1

Higher revenue y-o-y

− Positive development of international project business

EBITDA and EBIT below prior year

• − Operating expenses up in line with developments of international project business
• − Previous year benefited from positive effects in at equity results

Cash flows

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

CF from operating activities

− Lower dividends from equity accounted investees

CF from investing activities

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

CF from financing activities

− Scheduled repayment of financial liabilities

• Group net result for 2019/20 is expected to range from EUR 200m to EUR 230m
  • − Assuming average conditions in the energy business environment
• Investment strategy
  • − Approximately EUR 400m p.a. over the next financial years
  • − Thereof approximately EUR 300m will be directed to networks, renewable generation, natural heat and drinking water in Lower Austria

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.