EVN AG — Interim / Quarterly Report 2009

Aug 27, 2009

News Details

Corporate | 27 August 2009 08:00

EVN AG: Development of business in the first three quarters of 2008/09

EVN AG / Quarter Results/Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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(October 1, 2008 - June 30, 2009)

Positive revenue and EBIT development despite difficult economic
conditions
Outlook confirmed for the current financial year
Ground-breaking ceremony for the construction of three hydropower
storage plants in Albania
Concession to distribute and supply natural gas on the Croatian Adriatic
Coast
Strong revenue growth in the Environmental Services segment

                                    2008/09 
                                     Q. 1-3      Change 
                                      EUR m        in %

Revenue 2,150.2 +16.7
EBITDA 324.9 +8.0
Results from operating activities
(EBIT) 179.2 +8.3
Group net profit 175.6 -7.6

The overall business environment deteriorated during the period under
review (October 1, 2008 - June 30, 2009). The global economic crisis
massively impacted Austria and South East Europe in the 1st quarter of
2009. In the meantime, the consequences of the economic crisis on Europe's
energy sector have intensified in recent months. Following a significant
decline in primary energy and electricity prices starting in the middle of
2008, energy demand has dropped considerably since the beginning of this
year, particularly on the part of industrial customers.

EVN managed to stand its ground in the light of a difficult market
environment in the first three quarters of the 2008/09 financial year. Due
to its stable customer structure, EVN was only marginally affected by the
negative developments, particularly the decline in energy consumption.
Accordingly, the operating performance improved. Total revenue of the EVN
Group rose 16.7% to EUR 2,150.2m, and the results from operating activities
(EBIT) amounted to EUR 179.2m, an increase of 8.3% from the previous year.
The Energy segment accounted for EUR 2.9m of the improved EBIT, whereas the
Environmental Services segment contributed EUR 7.9m. The financial results,
which fell from EUR 72.2m to EUR 45.1m, were characterised by a lower
income from investments. On balance, the Group net profit was down 7.6%, to
EUR 175.6m.

Revenue of the Energy segment climbed 16.0%, to EUR 1,972.0m, mainly
resulting from higher sales price level for electricity, gas and heating,
which partially compensated for the strong price in energy procurement
prices, as well as higher sales volumes for electricity in South East
Europe. Business development in the Environmental Services segment featured
several new projects in addition to existing ones, also leading to a
significant growth in revenue of 40.8%, to EUR 162.3m.

Continuation of long-term investment policy
Despite the current economic crisis, EVN continued to determinedly pursue
its business strategy and selective investment policy.

In the third quarter of 2008/09, the Energy segment prepared further
expansion steps. The ground-breaking ceremony for the construction of three
peak-load storage hydropower plants on the Devoll River in Albania took
place at the beginning of June 2009. An important milestone was achieved in
the construction of the coal-fired power plant being built in
Duisburg-Walsum, Germany when the boiler passed the hydraulic pressure test
in early July 2009. Electricity generation is expected to commence in 2010.
A photovoltaic facility with an electricity production of 180 MWh was put
into operation on the premises of the former Zwentendorf Atomic Power
Plant, representing another contribution to EVN's expanded use of renewable
energy sources. In the Networks business unit, the investment focus
continued to be the expansion and adaptation of Lower Austria's electricity
and gas networks. Accordingly, the first part of the 100 kV transmission
line from Gänserndorf to Bisamberg was put into operation in the 3rd
quarter of 2008/09. The ground-breaking ceremony for the trans-regional gas
pipeline leading to Southern Austria took place in July 2009. Investments
in the Supply business unit focused on the ongoing expansion of the
district heating network and the continuation of construction work on a
district heating transmission pipeline between Dürnrohr and Sankt Pölten.
Further investments were made in South East Europe to expand and modernise
electricity networks and metre technologies.

Investments in the Environmental Services segment during the first three
quarters 2008/09 primarily involved the expansion of the third waste
incineration line at the waste incineration plant in Dürnrohr, and
construction of combined cycle heat and power plants to generate
electricity and district heat based on biogas derived from the wastewater
purification plant in Ljuberzy, Moscow.

Project completion and new contracts in the Environmental Services segment
WTE expanded its market leadership position in the sewage disposal,
treatment and purification business in the Baltic States. In May 2009,
wastewater purification facilities were opened in Kohtla-Järve, Estonia. In
June 2009, WTE was awarded the contract for the turn-key construction and
expansion of a sludge treatment plant located on the premises of the
Siauliai, northwest of the Lithuanian capital of Vilnius, featuring a total
investment volume of EUR 20.0m. WTE also continued on the road to success
in Montenegro. In July 2009, WTE was contracted to construct a sewage
disposal system for the Municipality of Budva. The BOOT project involves a
total investment volume of about EUR 65.0m, and will be operated by WTE for
a period of 30 years starting in 2014.

EVN secures long-term liquidity and maintains strong balance sheet
structure
In the first three quarters of 2008/09, EVN issued a total of five
corporate bonds with a total volume of EUR 470.0m, including a bond for EUR
150.0m in the 3rd quarter. The financial resources will be used to redeem
loans and borrowings which have fallen due and finance ongoing investment
projects. The net debt increased from EUR 1,131.3m as at September 30, 2008
to EUR 1,357.2m. As a result, gearing rose to 44.2% at the end of the 3rd
quarter.

Since the last balance sheet date on September 30, 2008, the balance sheet
total of EVN rose by 1.8%, or EUR 120.0m, to EUR 6,756.2m. Whereas the net
profit for the first three quarters 2008/09 had a positive impact on
equity, the change in the market valuation of EVN's shareholding in
Verbundgesellschaft without recognition to profit or loss as well as the
distribution of the dividend to shareholders of EVN AG led to a decrease in
equity by 4.4%, or EUR 139.7m, to EUR 3,068.8m. The equity ratio amounted
to 45.4% as of June 30, 2009.

Outlook confirmed
Following the first three quarters, we are able to confirm the original
outlook for the 2008/09 financial year. Even if the economic recession has
corresponding effects on the Group net profit, from today's point of view
EVN will likely be able to maintain the operating results achieved in
2007/08, aside from any potential negative consequences arising as a result
of political and regulatory risks. However, the financial results will be
below the previous year's level, primarily due to the lower earnings
contribution from investments operating in the field of primary energy.

The complete Letter to Shareholders Q. 1-3 2008/09 is available at
www.investor.evn.at.

EVN AG
Corporate Communications
EVN Group

Stefan Zach
EVN Platz
2344 Maria Enzersdorf
Tel.: +43 2236 200-122 94
Fax: +43 2236 200-822 94
Mobil: +43 676 810 32 294
stefan.zach@evn.at
www.evn.at

27.08.2009 Financial News transmitted by DGAP

Language: English
Issuer: EVN AG
EVN Platz
2344 Maria Enzersdorf
Österreich
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

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