EVN AG — Investor Presentation 2015

Aug 27, 2015

EVN Conference Call Q. 1-3 2014/15 Results

27 August 2015

Business development Q. 1-3 2014/15

• Increase in electricity generation
• expansion of renewable energy production
• full operations in the Duisburg-Walsum power plant
• usage of gas power plants to ensure network stability
• New tariffs in Bulgaria and Macedonia announced by the regulators
• Sale of the sodium hypochlorite plant to the Moscow city water supply and wastewater disposal company
• Operating result and group net result above prior year
• Net debt down by 21.2% to EUR 1.29bn; Gearing at 49.1%

Key financials

	EURm	2014/15 Q. 1-3	+/– in %
Revenue		1,664.1	11.3
EBITDA		497.2	38.8
EBIT		286.5	–
Financial results		–41.2	–
Group net profit		187.1	–
Net cash flow from operating activities		316.1	–13.9
	EUR

Earnings per share 1.05 –

Year-on-year rise in revenue

• Increase in electricity production
• Higher contribution from South Eastern Europe
• Growth in natural gas marketing activities

Improved EBITDA and EBIT

• Improved energy contribution margin
• Sale of sodium hypochlorite plant
• Better results from equity accounted investees with operational nature
• Absence of last year's one-off effects

Decline in financial results

• Lower dividend payment from Verbund AG
• Termination of the hedge and investment guarantee for the sodium hypochlorite plant

Working capital related reduction of operating cash flow

• Equity ratio 40.4% in comparison to 38.5% as of 30.09.2014
• Net debt reduced by EUR 328.9m to EUR 1.293.6m (compared to 30.09.2014)
• Gearing decreased from 61.6% to 49.1% (compared to 30.09.2014)

EBITDA development by segments

Generation

Electricity generation volumes	GWh	2014/15 Q. 1-3	+/– in %
Total		3,260	27.3
Renewable energy sources		1,318	17.1
Thermal energy sources		1,942	35.3

Financial performance	EURm
Revenue		171.2	22.9
EBITDA		84.9	45.0
EBIT		27.0	–

Increase in thermal production

Full operations of Duisburg-Walsum

Rise in production from renewable energy sources

• Full operations of the Prellenkirchen wind park
• Commissioning of the Prottes-Ollersdorf windpark

Higher EBITDA and EBIT

• Higher revenue
• Increased call of EVN's natural gas power plants to ensure network stability in Austria and Germany
• Rise in depreciation and amortisation

Energy Trade and Supply

End customer price adjustment1)
Electricity and gas	1.10.2014	–10.0%
Sales volumes to end customers	GWh	2014/15 Q. 1-3	+/– in %
Electricity		5,181	–0.5
Natural Gas		4,937	–2.0
Heat		1,554	0.6

Financial performance	EURm
Revenue		381.6	7.4
EBITDA		74.9	–7.6
EBIT		62.4	–10.0

Different development of sales volumes

• Natural gas and heating sales volumes nearly unchanged
• Decrease in natural gas sales volumes due to a decline in the household segment

Rise in revenues and operating expenses

• Marketing of the production from the Duisburg-Walsum power plant
• Increase in natural gas trading activities

Decrease in EBITDA and EBIT

• Declining energy contribution margin
• Better results from equity accounted investees with operational nature

Network Infrastructure Austria

Tariff structures1)
Electricity	01.01.2015	–1.0%
	01.01.2014	–9.0%
Natural gas	01.01.2015	–3.0%
	01.01.2014	7.7%

Network distribution		2014/15	+/–
volumes	GWh	Q. 1-3	in %
Electricity		6,152	2.3
Natural gas2)		12,855	6.6

Financial performance	EURm
Revenue		366.0	–1.5
EBITDA		170.3	–1.5
EBIT		92.9	–4.6

Increase in network distribution volumes

• Higher electricity distribution volumes driven by higher demand from industrial customers
• Rise in gas distribution volume mainly due to operation of gas-fired power plants

Decrease in EBITDA and EBIT

• Decrease in network tariffs for electricity and natural gas in January 2015
• Higher revenue in cable TV and telecommunication services
• Decline in operating expenses

2) Including network sales to EVN's power stations

End customer price	adjustments1)
Bulgaria	electricity	1.8.2015	–0.4%
		1.10.2014	9.7%
	heat	1.7.2015	–7.0%
		1.7.2014	5.1%
Macedonia	electricity	1.7.2015	–0.3%
		1.7.2014	3.5%

		2014/15	+/–
Key energy business indicators	GWh	Q. 1-3	in %
Electricity generation volumes		414	33.8
volumes2) Network distribution		10,430	4.3
Heat sales volumes to end customers		198	15.2

Financial performance	EURm
Revenue		800.0	21.0
EBITDA		79.6	–
EBIT		33.6	–

Higher electricity generation volumes

Good water flows in Macedonia

Sales volumes increased

Temperature-related increase in electricity network distribution volumes and heat sales volumes in Bulgaria

Year-on-year EBITDA and EBIT increase

• Demand and price related increase in sales revenues
• Higher energy purchase costs due to regulatory decisions
• Continued reduction of network losses
• Absence of last year's impairment effects

Environmental Services

Financial performance	EURm	2014/15 Q. 1-3	+/– in %
Revenue		127.6	–5.4
EBITDA		36.9	–1.0
EBIT		17.1	21.7
Financial results		-6.4	–
Profit before income tax		10.6	–11.1

Declined revenues. improvement of EBIT

• Sale of the sodium hypochlorite plant
• Positive effects from water supply and thermal waste utilisation in Lower Austria

Drop in financial results

• Termination of the hedge and investment guarantee for the sodium hypochlorite plant
• Decrease in interest income

Business development

• Takeover of the sodium hypochlorite plant by the city of Moscow successfully completed
• Participation in tenders for 10 waste water treatment plant projects

	EURm	2014/15 Q. 1-3	+/– in %
Gross CF		387.6	17.4
Net CF from operating activities		316.1	–13.9
Net CF from investing activities		45.4	–
Net CF from financing activities		-340.6	–42.8
Net change in cash and cash equivalents		20.9	–

Increase of gross cash flow

Increase in the result before income tax

Reduction in net cash flow from operating activities

Working capital effect

Positive cash flow from investing activities

Sale of the sodium hypochlorite plant

Decrease in net cash flow from financing activities

• Repayment of the financing for the sodium hypochlorite plant
• Scheduled repayments

Group net profit 2014/15 is expected to exceed 2012/13 level

• EVN's strategy:
• Integrated business model
• Consolidation of existing business in core markets
• Increase of efficiency
• Investment focus on security of supply and expansion of renewable energy production capacities in Lower Austria

Stefan Szyszkowitz

CFO Phone: +43 2236 200-12132 Fax: +43 2236 200-82132 E-mail: stefan.szyszkowitz@evn.at

Gerald Reidinger

Head of Controlling and Investor Relations Phone: +43 2236 200-12698 Fax: +43 2236 200-82698 E-mail: gerald.reidinger@evn.at

Alexander Sipek

Investor Relations Officer Phone: +43 2236 200-12360 Fax: +43 2236 200-82360 E-mail: alexander.sipek@evn.at

Investor information on the web

www.evn.at www.investor.evn.at www.responsibility.evn.at E-mail: investor.relations@evn.at

EVN AG

Headquarters 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. 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.