EVN AG — Earnings Release 2020

Feb 26, 2021

EVN conference call Q. 1 2020/21 results

26 February 2021

Highlights Q. 1 2020/21

• Positive business development
  • − Revenue (+4.8%), EBIT (+14.4%) and Group net result (+12.7%)
• Higher earnings contribution from equity accounted investees with operational nature
• Covid-19 pandemic had only limited influence
• Increase in installed wind power capacity to 376 MW
• Construction of a biomass combined heat and power plant in Krems
• Contract awarded for modernization of wastewater treatment plant in Poland
• Outlook for FY 2020/21 confirmed

Key financials Q. 1 2020/21

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

h f low fro Ne t c as m
ing iv i ies t t t op er a a c	4 3. 7	–
1) Inv tm ts es en	8 6. 8	1 3. 9
de b Ne t t	1, 0 5 2. 4	-6 7
	%
2) Eq i io ty t u ra	6. 8 5	0 1.

1) In intangible assets and property, plant and equipment

2) Changes reported in percentage points

Improvement in revenue

• − Start of wastewater project in Kuwait
• − Higher temperature-related network sales volumes in Austria, Bulgaria and North Macedonia

Increase in EBITDA, EBIT and Group net result

• − Takeover of additional electricity procurement right led to positive one-off effect in EBITDA but was contrasted by an impairment loss
• − Decline in natural gas trading
• − Improvements in operating earnings and valuation effects from hedges at EVN KG

Solid balance sheet structure

Gearing decreased from 22.8% to 19.3%

• Strong balance sheet as basis for extensive investment programme in the coming years (annually up to EUR 450m)
• Committed, undrawn credit facilities in the amount of EUR 571m as of 31.12.2020

Conference call Q. 1 2020/21 results

EBITDA development by segments

Generation

	Q 2 0 2 0 2 1 / 1	/– +
l i i i l E t t t e c r c y g e n e r a o n v o u m e s	h G W	%
l T t o a	8 7 0	-4 8
b l R e n e w a e e n e r g y s o u r c e s	4 6 5	0. 7
h l T e r m a e n e r g y s o u r c e s	0 4 5	0. -1 4

	Q 1 2 0 2 0 / 2 1	/– +
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	7 9. 6	9 7.
E B I T D A	5 6. 8	6 8 4.
E B I T	3 5. 7	-

Decline in electricity generation

• − Increase in renewable generation

  • −Good water flows

• −Decline in wind flows

• − Reduced use of Walsum 10 power plant

Improvement in revenue, EBITDA and EBIT

• − EBITDA increase mainly due to one-off effect (takeover of electricity procurement right)
• − Rise in scheduled depreciation and amortisation due to higher investments

Energy

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

	Q 1 2 0 2 0 / 2 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 n u e	9 3. 9	-2 8. 3
E B I T D A	5 3. 6	6 8. 9
E B I T	4 8. 3	8 1. 0

Positive development of energy sales volumes

• − Acquisition of new industrial customers
• − Weather-related increase for natural gas and heat

Revenue below previous year

− Decline in marketing of own generation

Increase in EBITDA and EBIT

• − Positive one-off effect in EBITDA due to takeover of electricity procurement right
• − Improvement in operating earnings and increase in effects from valuation of hedges at 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 2 0 / 2 1	/– +
l v o u m e s	h G W	%
l E i i t t e c r c y	2, 3 2 6	1. 8
1) l N t a u r a g a s	6 2 5, 1	5. 4

	Q 1 2 0 2 0 / 2 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 e n e v u	1 4 6. 3	1. 1
E B I T D A	7 1. 0	3. 6
E B I T	3 6. 9	1. 7

1) Including network sales to EVN's power stations

Increase in network sales volumes

− Increase in electricity and natural gas (household customers)

− Decrease in electricity (commercial customers)

Revenue, EBITDA and EBIT above previous year

• − Temperature-related volume increase for electricity and natural gas
• − Natural gas revenue negatively affected by price reduction

New network tariffs for household customers as of 1 January 2021

• − Average increase of 6.3% for electricity
• − Average increase of 6.4% for natural gas

South East Europe

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

	Q 2 0 2 0 2 1 / 1	/– +
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 n u e	2 2 4 5.	2. 8
E B I T D A	3 3. 6	0. 7
E B I T	1 5. 5	-0 5

Increase in network sales volumes

Decrease in energy sales volumes

− Market liberalisation for commercial customers in Bulgaria as of October 2020

Stable development of EBITDA and EBIT

Environment

	Q 1 2 0 2 0 / 2 1	/– +
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 e n e v u	9 4. 3	-
E B I T D A	1 7. 9	-
E B I T	8. 4	-
l l i i F t n a n c a r e s u s	-0 5	5 8. 3
l b f R i t t e s u e o r e n c o m e a x	7. 9	-

Improvement in revenue, EBITDA and EBIT

• − Positive development of international project business, mainly due to start of Kuwait wastewater project
• − Positive one-off effect at evn wasser

Cash flows

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

Gross cash flow

− Takeover of electricity procurement right

CF from operating activities

− Higher income tax payments

CF from investing activities

− Increase in investments in property, plant and equipment as well as cash funds

CF from financing activities

• − Scheduled repayment of loans
• − Issuance of green private placement

• Group net result for 2020/21 is expected to range from approximately EUR 200m to EUR 230m
  • − Assuming average conditions in the energy business environment
  • − Further course of corona crisis and resulting macroeconomic effects could have negative influence on individual business areas at EVN and hence development of earnings for entire Group
• Confirmation of dividend policy
  • − Ordinary dividend at least constant at EUR 0.49 per share

• Investment strategy

• − Annual investments of up to EUR 450m p.a. (~ ¾ in Lower Austria)

• − Network investments secure supply security, carbon-free energy future and growth in the Networks Segment
• − Additional focal points: renewable generation (wind power, photovoltaics and biomass) and drinking water supplies

Contact details

Stefan Szyszkowitz, CEO

• IR contact partners:
  • − Gerald Reidinger
  • − Matthias Neumüller
  • − Karin Krammer
  • − Doris Lohwasser (maternity leave)
• IR contact details
  • − E-mail: investor.relations@evn.at
  • − Phone: +43 2236 200-12128
  • − Phone: +43 2236 200-12867

• 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.