EVN Conference Call Q. 1–3 2012/13 Results

August 29th, 2013

Business highlights

Key financials
–Operating result at last year's level
– Group net profit 34.8% below prior-year level due to one-off effects in financial results
–Outlook for financial year 2012/13 roughly 40% below prior year
EVN assigned reserve capacity of 785 MW for Southern Germany over the next three winter half-years
Decreased end customer prices in SEE; arbitration proceedings in Bulgaria
Realisation of environmental projects in Moscow delayed
Standard & Poor's and Moody's rating confirmed (BBB+, A3) with stable outlook

	2 0 2 3 1 / 1	/– +
EU Rm	Q 1– 3	i % n
	2, 2 0 4. 5	2. 3 –
	4 1 5. 1	3. 2 –
	2 3 8. 8	0. 1
	2 0 1. –	–
	2 1 4 5.	3 8 4. –
	3 8 2. 1	3 8. 8
EU R
	0. 8 1	3 4. 5 –

Revenue below last year

Lower volume of final invoices in international project business
Energy business slightly above prior year

EBITDA decline

Higher other operating income
Higher procurement costs for energy
Lower cost of material for international project business
Higher other operating expenses

Financial results dropped

Negative earnings contribution from equity accounted investees

Financial results

Financial results decreased to EUR –21.0m

Drop in income from investments in equity accounted investees
EconGas: EUR –20.4m
Devoll: EUR –27.5m
WEEV: EUR –29.4m
Slight increase of income from other investments
Lower total interest and other financial results

EBITDA development by segments

Generation: good water flows, unfavourable wind conditions, continuing decline in electricity market prices, prior year positively affected by the power request from Germany
Energy Trade and Supply: revenue decrease due to drop in sales of marketed gas volumes and price reduction due to lower additional costs for renewable electricity, partly compensated by lower operating expenses
Energy Supply South East Europe: increase in electricity production, temperature-related drop in sales volumes, tariffs adjustments in the previous year, higher procurement costs

Generation

		2 0 1 2 / 1 3	/– +
l i i i l E t t t r r s e c c y g e n e a o n v o u m e	h GW	Q 1– 3	i % n
l T t o a		2, 2 7 8	5. 7
b l R e n e w a e e n e r g y s o u r c e s		2 3 1, 5	2 6. 5
h l T e r m a e n e r g y s o u r c e s		0 2 1, 4	9 1 1. –

f i i l F n a n c a p e r o r m a n c e
R e v e n u e	9 1. 2	1 0. 3 –
E B I T D A	3 6. 7	2 1. 5 –
E B I T	6. 1 1	6 9. 7

Higher generation volumes attributable to renewable energy sources

Good water flows
Start of operations of Ashta, Albania
Reduced power request from Germany

EBITDA decrease but EBIT increase

Lower revenue
Continued decline in electricity market prices
Lower wind conditions
Reduction in the option value of thermal power plants
Impairment charge in the previous year

Energy Trade and Supply

d i d j ) E 1 t t t n c u s o m e r p r c e a u s m e n
l i i E t t e c r c y	/20 12 1/1	% –1 7
l l S t a e s v o u m e s o d t e n c s o m e r s u	GW h	2 0 2 3 1 / 1 Q 1– 3	/– + i % n
l i i E t t e c r c y		5, 5 5 6	1. 4 –
l N G t a u r a a s		5, 9 6 7	1. 9
H t e a		1, 5 8 4	7. 6

i i l f F n a n c a p e r o r m a n c e
R e v e n u e	8 9 2 4.	3. 9 –
E B I T D A	6 6. 9	1 1. 0 –
E B I T	5 5. 7	1 1. 3 –

Different sales volumes development

Decrease in electricity sales volumes
Temperature-related increase in natural gas and heat sales volumes

EBITDA and EBIT drop

Revenue decrease
Price reductions in prior year due to lower additional costs for renewable electricity
Decrease in sales of marketed gas volumes
Sold subsidiary first facility included last year
Lower operating expenses
Decrease in electricity sourcing costs
Increase of a provision for impending losses

Network Infrastructure Austria

i f f ) T 1 t t a r s r u c u r e s
l i i E t t e c r c y	/20 13 1/1	–0 % 4
l N t a u r a g a s	1/1 /20 13	–2 % 5
k d i i b i N t t t e w o r s r u o n l v o u m e s		2 0 1 2 / 1 3 Q 3 1–	/– + i % n
l i i E t t e c r c y	h GW	6, 0 2 8	3 1.
) 2 l N t a u r a g a s		3, 3 1 1 1	1. 7 –

i i l f F n a n c a p e r o r m a n c e
R e v e n u e	3 9 1. 2	2. 5 –
E B I T D A	8 3 1 7.	2. 8
E B I T	1 1 3. 8	4. 3

Diverse distribution volumes development

Electricity: temperature-related increase
Natural gas: decline
Weaker demand from industrial customers
Further reduction in use of EVN's gas-fired power plants

Revenue decline

Decrease in other revenue due to lower number of invoiced customer projects

1) Average, according to the regulator in Austria (E-Control)

2) Including network sales to EVN's power stations

Energy Supply South East Europe

d E t n c u s o m e r p r	d ) i j 1 t t c e a u s m e n s
l i B g a r a u	l i i t t e e c r c y	7/1 /20 12	1 3. 6 %
		3/5 /20 13	–7 3 %
		8/1 /20 13	% –4 2
	h t e a	/20 12 7/1	% –2 0. 6
		1/1 /20 13	9 % –5
d i M a c e o n a	l i i t t e e c r c y	1/1 /20 12	8 % 7.
		8/1 /20 12	9. 8 %

		2 0 1 2 / 1 3	/– +
b i i d i K t e e n e r g s n e s s n c a o r s y y u	GW h	Q 1– 3	i % n
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		3 4 6	7 1. 1
) 2 k d b l i i i N t t t e o r s r o n o m e s w u v u		1 0, 0 1 9	6. 9 –
l l d H t t t e a s a e s o m e s o e n c s o m e r s v u u		1 9 5	1 5. 2 –

7/1/2013

–3.0%

f i i l F n a n c a p e r o r m a n c e
R e v e n u e	7 8 0. 2	6. 0
E B I T D A	8 5. 5	1 1. 0
E B I T	3 5. 7	2 3. 6

Higher electricity generation volumes

Takeover of the operation of seven small hydropower plants in Macedonia
Full-year operation of the co-generation plant in Plovdiv, Bulgaria

Temperature-related drop in sales volumes

EBITDA and EBIT increase

Higher revenue
Price increases in Macedonia last year
Full-year operation of co-generation plant
Higher procurement costs chiefly attributable to additional costs related to renewables
Higher other operating expenses

i i l f F n a n c a p e r o r m a n c e	2 0 1 2 / 1 3 Q 3 1–	/– + i % n
R e v e n u e	9 3 1 1.	2 1. 7 –
E B I T D A	3 8. 0	2 2. 6 –
E B I T	1 6. 6	4 3. 8 –
i i l l F t n a n c a r e s u s	9. 2	3 3. 6
f b f P i i t t r o e o r e n c o m e a x	2 5. 7	2 9. 2 –

EBITDA and EBIT decline

Lower revenue
Higher project invoicing of international project business in past year
Decrease in operating expenses related to international project business

Financial results positively influenced by higher interest results

Business development

Poland: start of operations at one of Europe's largest wastewater purification plants in March 2013
Lower Austria: further activities to protect and improve drinking water supply
Moscow: difficult progress on environmental projects

	2 0 2 3 1 / 1 Q 1– 3	/– + i % n
G C F r o s s	9 8. 4 4	2. 0 1
f i i i i N C F t t t t e r o m o p e r a n g a c v e s	3 8 2. 1	3 8. 8
f N C F i i i i i t t t t e r o m n v e s n g a c v e s	2 5 7. 2 –	1 0. 3 –
f f i i i i i N C F t t t e r o m n a n c n g a c e s v	3 6. 9 –	4 4. 3 –
h h d h N i i t t e c a n g e n c a s a n c a s e m s	8 7. 9	–

Higher gross cash flow

Non-cash expenses from EconGas, WEEV and Devoll
Change in non-current provisions

Increase of net cash flow fromoperating activities

Lower y-o-y growth in working capital

Change of net cash flow from investing activities

Purchase of short-term securities

Drop in net cash flow from financing activities

Dividend payment to EVN's shareholders
Current share buyback programme
Scheduled repayment of loans and borrowings
Capitalising on EVN's integrated business model
Strengthening our business in core markets
Focusing on efficiency-increasing measures
Providing security of energy supply and services
Benefitting from guaranteed feed-in tariffs for renewable energy
Building on our broad, diversified and stable customer base

Appendix

One-off effects in profit of equity accounted investees

	2 0 2 3 1 / 1 Q 1– 3	2 0 2 1 1 / 1 Q 1– 3	/– + i l n o m n a
E G c o n a s	2 0. 4 –	7. 7	–2 8. 1
l l d h D H S A e v o y r o p o w e r	2 7. 5 –	1. 0 –	–2 6. 5
l b i i G W E E V B H t e e g u n g s m	2 9. 4 –	0. 9	–3 0. 3
G R A	6 6. 7	2. 8 5	3. 9 1
l d l d i B H r g e n a n o n g u	7. 4	1 0. 1	–2 7
Z O V Z O V U I P ;	8. 9	8. 7	0. 2
h O t e r	3. 3	3. 2	0. 1
h f f i f i S t t a r e o p r o o e q u y d i t t a c c o u n e n v e s e e s	9. 1	8 2. 3	7 3. 2 –

EconGas

Negative earnings contribution recognised in Q. 1 2012/13

Devoll

Sale of 50% stake in hydropower project to joint venture partner in HY. 1 2012/13

WEEV

P&L relevant market valuation of Verbund shares acquired in 2010
HY. 1 2012/13: EUR –22.5m
Q. 1–3 2012/13: further EUR –6.9m due to continuing decline in share price below carrying amount

Prior year adjusted due to IAS 19 (2011)

	2 0 1 1 / 1 2	2 0 1 1 / 1 2	/– +
	Q 1– 3	Q 1– 3	l i n o m n a
EU Rm	( d ) j. a
l P e r s o n n e e x p e n s e s	2 3 3. 2 –	2 4 5. 6 –	1 2. 4
E B I T D A	4 2 8. 6	4 1 6. 2	1 2. 4
E B I T	2 3 8. 5	2 2 6. 1	1 2. 4
I t t n e r e s e p e n s e s x	2 7 5. –	6 2. 8 –	1 2. 4 –
l l i i F t n a n c a r e s s u	3. 2 5	6 6 5.	2. 1 4 –
f b f i i P t t r o e o r e n c o m e a x	2 9 1. 7	2 9 1. 7	–
f i G t t r o u p n e p r o	2 2 2. 8	2 2 2. 8	–

Change of disclosure of interest component of the provisions for pensions and severance payments between personnel expenses and financial results

Investments1)

Investment volume increased by 1.2%

Expansion of windpower capacities
Expansion of district heating network
Construction of the natural gas transport pipeline Westschiene
Network expansion in Austria to ensure supply security against the backdrop of the intensive expansion of renewable energy
Modernisation and expansion of network infrastructure in South Eastern Europe
Further activities to protect and improve water supply in Lower Austria

Stefan Szyszkowitz

CFOPhone: +43 2236 200-12132Fax: +43 2236 200-82132E-mail:[email protected]

Gerald Reidinger

Head of Finance and Investor RelationsPhone: +43 2236 200-12698Fax: +43 2236 200-82698E-mail:[email protected]

Investor information on the web

www.evn.atwww.investor.evn.atwww.responsibility.evn.at E-mail: [email protected]

EVN AG

Headquarters EVN Platz2344 Maria Enzersdorf

Disclaimer

Certain statements made in this presentation may constitute "Forward-Looking Statements" within the meaning of the U.S. federal securities law. Forward-looking 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.