EVN AG — Interim / Quarterly Report 2019

May 28, 2020

EVN conference callHY. 1 2019/20 results

28 May 2020

Highlights HY. 1 2019/20

• Solid business development despite negative non-cash, non-recurring effects
• Recovery of EVN KG
• Networks Segment negatively affected by lower tariffs and volume effects
• Impairment losses due to increase in country risk premiums in South East Europe caused by the Covid-19 pandemic
• Share of renewable electricity generation rises to 53.8% (previous year: 39.8%)
• New thermal sludge treatment project in Hanover
• Reduced outlook for FY 2019/20
• Impact of Covid-19 (impairment losses and delayed start of construction on the wastewater project in Kuwait)
• Confirmation of dividend policy

Key financials HY. 1 2019/20

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

h f low fro Ne ing iv i ies t c t t t as m op era ac	3 1. 2	-7 0. 9
1) Inv tm ts es en	1 2 8. 4	-4 5
de b Ne t t	1, 1 9 1. 2	1 4. 4

2) i io Eq ty t u ra	5 5. 0	-0 3

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
• Impairment losses due to increase in country risk premiums in South East Europe caused by the Covid-19 pandemic

Solid balance sheet structure

• Increase of net debt in HY. 1 2019/20 includes effect of EUR 68.1m in connection with initial application of IFRS 16
• Rating updates in May 2020:
• Moody's: A1, stable outlook
• Standard & Poor's: A, negative outlook

EBITDA development by segments

Conference call HY. 1 2019/20 results

Generation

	H Y. 1 2 0 1 9 / 2 0	/- +
lec ic i io lu E tr ty t g en er a n vo m es	h G W	%
l To ta	1, 7 4 9	-3 1. 4
b le Re ne wa en er g y so ur ce s	9 7 8	-1 3
he l e T rm a ne rg y so ur ce s	7 7 1	-5 0. 6
f in ia l in d ica Ke to y an c rs	E U Rm
Re ve nu e	1 4 7. 0	-1 8. 4
E B I T D A	6 6. 8	-3 2. 6
E B I T	3 2. 1	-5 2. 6

Decline in electricity generation

• Renewable generation slightly lower y-o-y (additional wind capacity, but lower wind and water flows)
• Lower thermal generation (closure of coalfired power plant in Dürnrohr; less demand for network stabilisation)

Revenue, EBITDA and EBIT below previous year

Impairment losses following an increase in the country risk premiums due to Covid-19 (Ashta hydropower plant in Albania and wind park Kavarna in Bulgaria)

Energy

EBIT

les lu Sa to v o m es	H Y. 1 2 0 1 9 / 2 0	/- +
d to en cu s m er s	h G W	%
lec E ic i tr ty	4, 4 2 2	7. 9
l g Na tu ra as	3, 8 4 2	-2 7
He t a	1, 4 2 5	2. 2
f in ia l in d ica Ke to y an c rs	E U Rm
Re ve nu e	2 5 9. 1	-2 8. 1
E B I T D A	6 5. 2	-

55.0 -

Different development of energy sales volumes

• Increase in electricity sales volumes (positive development in sales to industrial 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 bu Ne is i io tw tr t or n	H Y. 1 2 0 1 9 / 2 0	/- +
lu vo m es	h G W	%
lec ic i E tr ty	4, 5 4 5	0. 0
l g Na tru a as	1 0, 1 9 3	-3 5
f in ia l in d ica Ke to y an c rs	E U Rm
Re ve nu e	2 9 2. 7	-3 9
E B I T D A	1 3 3. 7	-1 0. 1
E B I T	6 8. 9	-2 2 1.

Different development of network distribution volumes

• Electricity network sales volumes at prior year level
• 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

H Y. 1 2 0 1 9 / 2 0	/- +
h G W	%
2 3 4	-2 6
2 5	2. 6 1
1 8 2	-6 2
7, 6 1 9	-1 7
6, 4 8 3	-1 9
1 5 6	-1 0. 6

f l d Ke in ia in ica to y an c rs	E U Rm
Re ve nu e	5 2 0. 6	6. 9
E B I T D A	8 0. 2	4 8. 5
E B I T	3 6 1.	3 0. 4

Network and energy sales volumes declined y-o-y

Unusually mild temperatures

Improvement in EBITDA and EBIT

• Reduction in procurement costs for network losses in Bulgaria
• Impairment losses following an increase in the country risk premiums due to Covid-19 (Bulgarian district heating company TEZ Plovdiv and customer base in North Macedonia)

Environment

	2 0 9 2 0 H Y. 1 1 /	/- +
f l d Ke in ia in ica to y an c rs	h G W	%
Re ve nu e	6 5. 4	6 2. 5
E B I T D A	9. 2	-3 0. 2
E B I T	3. 3	-5 6. 1
l re l ina ia F ts nc su	-3 4	-3 0. 7
l be fo inc Re t tax su re om e	-0 1	-

Higher revenue y-o-y

• Increase in drinking water sales volumes
• Positive development of international project business

EBITDA and EBIT below prior year

• Corresponding increase in operating expenses
• Previous year benefited from positive effects in at equity results

New thermal sludge treatment project in Hanover

• sludge2energy (50:50 joint venture of WTE Wassertechnik)
• Contract volume: ~EUR 40m

Cash flows

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

CF from operating activities

Non-cash effective earnings contribution by 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

Dividend payment for FY 2018/19 and scheduled repayment of financial liabilities

• Group net result for 2019/20 is expected to range from EUR 180m to EUR 200m (so far: EUR 200m to EUR 230m)
• Impact of Covid-19 (impairment losses and delayed start of construction on the wastewater project in Kuwait)
• Assuming average conditions in the energy business environment
• Confirmation of dividend policy
• Absolute amount of ordinary dividend constant at a level of at least EUR 0.47 per share
• 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
• Occasional delays in projects during coronavirus lockdown

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.