EVN AG — Investor Presentation 2016

Oct 4, 2016

EVN Company presentation

October 2016

• 2014/15 Group EBITDA: 82% from regulated and stable business
• Stable home market due to high customer loyalty
• Diversified business model balances between the segments
• Diversifying holdings in energy-related businesses Verbund AG, Verbund Innkraftwerke GmbH, Burgenland Holding AG and RAG
• Growth opportunities through investments in SEE
• Strong Cash flow
• Secures investments in RAB
• Enables payment of attractive dividends; 2014/15 dividend yield: 4.3%

• Supports debt repayment

• EVN at a glance

• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Contact details

EVN profile

• Leading integrated energy and environmental services company serving customers in Lower Austria,SEE and CEE
• Key activities
• Energy generation (renewable, thermal)
• −Regulated grid (electricity, natural gas)
• Energy supply
• Environmental services

Shareholder structure (as of 30.06.2016)

Energy business – 6 countries

1) EVN share: 50%

2) EVN share: 13%

3) EVN share: 49%

Environmental services business – 9 countries

	k i i D t r n n g a e r w j t p r o e c s	W t a s e j p r o	t a e r w t e c s
h b l C R i e c e p c z u
C y p r u s
d i M a c e o n a
M t o n e n e g r o
1) i A t u s r a
C i t r o a a
G e r m a n y
2) i R u s s a
l S i o v e n a
de Op ion Un Co t era r	ion nst t ruc

1) Thermal waste utilisation plant

2) Thermal waste utilisation plant

Status of international project business: 30.06.2016

Strategic investments

• 1 electricity producer in Austria and #2 in Europe with 8.6 GW installed capacity (encompasses ~1% of shares held by WEEV)

• 13 run-of-river plants with 312 MW installed capacity (EVN stake: 41 MW)
• Holds a 49% stake in Energie Burgenland (#1 green energy producer in Austria and local gas distributor)

• 2 oil & gas producer in Austria, one of the largest gas storage operators in CE with 5.8bn m³ working gas capacity

# 1	l d h k S i t o o m e m a r e f f ( ) 2 9 see p ag e
# 2	k i i S t t t r o n g m a r e p o s o n ( ) 3 2 see p ag e
3 #	h h f f l d d b l b i i i H t t g s a r e o e a r n n g s r o m r e g u a e a n s a e u s n e s s ( ) 3 6 see p ag e
# 4	d l i i i U S E E t t p s e p o e n a n ( ) 4 0 see p ag e
# 5	f h h l b i i i i i i D t t t v e r s c a o n r o u g e n v r o n m e n a u s n e s s ( f ) 4 1 see p ag e
# 6	S i i t t t t r a e g c n v e s m e n s ( 3 ) 4 see p ag e
# 7	l d l i i S t t t o c a p a s r u c u r e ( f f ) 4 4 see p ag e

Financial figures 2014/15

		-o y -y
E U Rm	2 0 1 4 / 1 5	i % n	2 0 1 3 / 1 4
R e v e n u e	2, 1 3 5. 8	8. 2	1, 9 7 4. 8
E B I T D A	5 8 3. 2	–	1 8 4. 1
E B I T	2 6 8. 2	–	–3 4 1, 4
l G t t r o u p n e r e s u	1 4 8. 1	–	–2 9 9. 0
h f l f N t e c a s o w r o m i i i i t t t o p e r a n g a c v e s	4 7 8. 3	–1 2. 4	5 4 6. 0
1) I t t n e s m e n s v	3 2 2. 7	–1 8. 6	3 9 6. 3
l h l B t t t a a n c e s e e o a	6, 5 0 1. 2	–5 0	6, 8 4 1. 8
i E t q u y	2, 5 9 0. 1	–1 6	2, 6 3 2. 7
i i E t t q u y r a o	3 9. 8 %	–	3 8. 5 %
d b N t t e e	1, 2 3 0. 9	–2 4. 1	1, 6 2 2. 4
i G e a r n g	4 7. 5 %	–	6 1. 6 %

Key financial figures (in EURm)

1) In intangible assets and property, plant and equipment

Contribution by business segments –Diversified portfolio

High share of earnings from regulated and stable business

• Majority of 2014/15 EBITDA (82%) derives from regulated and stable earnings
• Regulated business
• Grid in Austria
• Grid, supply and heating in SEE
• Wind production in Austria and SEE

Unregulated business

• Energy trade and supply
• International environmental projects
• Generation

• Oil and gas E&P/gas storage

• Stable business

• Water supply business in Lower Austria (2.3%)
• Heating business in Lower Austria (6.7%)
• Cable TV and telecommunication (5.6%)
• Waste incineration in Lower Austria (5.2%)
• Earnings contribution from Burgenland Holding (1.4%)

Key financialsQ. 1–3 2015/16

	2 0 6 1 5 / 1	/– +
E U Rm	Q 1- 3	in %
R e v e n u e	1, 6 1 6. 6	-2 9
E B I T D A	5 2 5. 4	5. 7
d i i i i D t t t e p r e c a o n a n a m o r s a o n	-2 2 6. 1	-7 3
E B I T	2 9 9. 3	4. 5
i i l l F t n a n c a r e s s u	-3 9. 5	2 4.
l G t t r o u p n e r e s u	1 9 8. 8	6. 3
f f h l N t e c a s o w r o m
i i i i t t t o p e r a n g a c v e s	3 9 7. 7	2 5. 8
i h E a r n n g s p e r s a r e	1. 1 2	6. 4

Revenue below previous year

• Lower revenue from mild winter in Bulgaria and liberalisation steps in SEE
• Higher revenue from thermal generation and Austrian network business

Increase in EBITDA, EBIT and Group net result

• Lower electricity purchases and primary energy expenses
• Reduction of operating expenses

Increase in financial results

Absence of previous year's one-off financial costs (termination of interest hedge and federal guarantee for the sodium hypochlorite project in Moscow)

EBITDA development by segmentsQ. 1–3 2015/16

investees

Generation Energy Trade and SupplyNetwork Infrastructure AustriaEnergy Supply South East EuropeEnvironmental Services Higher thermal generation Lower renewable generation due to wind and water flows Corresponding decline in sales volumes and primary energy expenses Higher earnings contributions from at equity accounted Positive price and volume effects Lower operating expenses Corresponding decline in revenue and energy procurement costs Improvement in collection of receivables Absence of last year's positive effect from sale of sodium hypochlorite plant

EVN at a glance¹⁴

• Retail business
• Growing competition but EVN continues to keep its excellent reputation of being a high quality energy and services provider
• EBITDA, Group net results, Cash flow
• − Sound cash and earnings contributions from resilient business model with focus on regulated activities
• − Ongoing investments with focus on RAB and expansion of regulated domestic wind generation business as stable growth drivers
• CAPEX
• ~ 75% of total CAPEX in Lower Austria
• Investment focus on networks, renewables, heating and water supply
• Financial ratios
• Net debt and gearing improvements
• Attractive dividend policy

The EVN share

Performance of the EVN share

EVN at a glance¹⁶

• EVN at a glance
• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Contact details

Legal basis

• Electricity Act 2010 (Elektrizitätswirtschafts- und organisationsgesetz ²⁰¹⁰)
• Natural Gas Act 2011 (Gaswirtschaftsgesetz ²⁰¹¹)
• Goals of the Austrian incentive regulation
• Reflect actual costs required to maintain system integrity and security of supply
• Provide for investment incentives to enhance efficiency and network expansion
• Optimise energy costs for consumers through reduction of network costs and increase competition among suppliers

Full transparency and predictability

• Regulator reviews and officially approves all projected costs, investments and capacity for entire regulatory period
• Resulting cost curve for regulatory period as benchmark for being in line with profits in the grid business or outperforming them
• Network operator benefits from efficient cost structure
• The Austrian regulator acknowledges the continued investment needs

k Ne tw or	le ic i E tr ty c	Ga s	Co ts m m en
la ho Re i to t ty g u ry au r	l b E- Co Gm H tro n	l b E- Co Gm H tro n
f he la d S io ta t o t to r re g u ry p er	0 1. 0 1. 2 0 1 4	0 1. 0 1. 2 0 1 3
la d j Ne t r to tm t eg ry a us en x u	0 0 2 0 9 1. 1. 1	0 0 2 0 8 1. 1. 1	d f d du fa A j W A C C iv i tm t o t ty to us en an p ro c c rs
f ion he la io d Du t t to ra o re g u ry p er	5 y ea rs	5 y ea rs
la ho d Re to t g u ry m e	Re ve nu e c ap s	Re ve nu e c ap s
( ) R A B E U Rm	l ly d j d An te nu a a us	l ly d j d An te nu a a us	l d de d he he inv in An R A B tm ts to t t nu a es en ar e a fo l low ing y ea r
( ina l ) W A C C ta p re- x, no m	% 6. 4 2	% 6. 4 2	fo f r len h o la io d Se t t to r g eg u ry p er
l p du fa Ge iv i t ty to ne ra ro c c r	1. 2 5 %	1. 9 5 %	fro du h he Ga ins ion in i t r t t t m co s e c s r em a w co m p an y du ing he la io d t to r re g u ry p er
f du fa Co i ic iv i t ty to m p an sp ec p ro c c r y	0. 3 6 %	0. 0 0 %	d d l fa f A i ion X is i ic t to a c r co m p an y sp ec
f la ion In t	l a d j An tm t nu a us en	l a d j An tm t nu a us en	f c k o ice in de is ( % ) Ne 3 0 tw to ts or p er a r p r x c on s o on su m er d bu l d ( ) d l l a i ing ice 0 % in ice inc 4 an p r s a s w e s w ag e rea se de in x

Regulated business in South Eastern Europe

le ic i E tr ty c	lg 1) ia Bu ar ( le ) ic i tr ty e c	lg ia ( Bu ar he ) t a	do ia M ac e n ( le ) ic i tr ty e c
la ho i Re to t ty g u ry au r	C E W R ( d la En W Re te to er g y an a r g u ry iss ion ) Co m m	C E W R ( d la En W Re te to er g y an a r g u ry iss ion ) Co m m	E R C ( la iss ion ) En Re Co to er g y g u ry m m
f he la io d S ta t o t to r re g u ry p er	0 1. 0 8. 2 0 1 5	0 1. 0 7. 2 0 1 6	0 1. 0 1. 2 0 1 5
la d j Ne t r to tm t x eg u ry a us en	0 1. 0 8. 2 0 1 8	0 1. 0 7. 2 0 1 7	0 1. 0 1. 2 0 1 8
f he la d Du ion io t t to ra o re g u ry p er	3 y ea rs	1 y ea r	3 y ea rs
la ho d 2) Re to t g u ry m e	Re ve nu e c ap s	f r l Ra i te tu ta o e rn o n c ap	Re ve nu e c ap s
( ) R A B E U Rm	l ly d j d An te nu a a us	l ly d j d An te nu a a us	l ly d j d An te nu a a us
( ina l ) W A C C ta p re- x, no m	% 7. 0 4	% 5. 7 7	% 6. 6 0
d k los Re ise tw co g n ne or se s	8. 0 %	3 0. 0 %	1 4. 0 %
du fa iv i Pro t ty to c c r	Ye s	Ye s	No
fa 3) Inv tm t to es en c r	Ye s	No	No

1) Regulatory decision based on new energy law still pending.

3) Annual review and approval of company's investment plans by the regulatory authority.

Source: Regulators in Bulgaria (EWRC) and in Macedonia (ERC)

²⁾ The revenue caps comprise the recognised operating expenses, the amortisation and depreciation as well as the recognised return on the RAB.

Tariff schemes for renewable energy sources

b le Re ne w a en er g y so ur ce	ia Au tr s	lg ia Bu ar	do ia M ac e n
d in W
	d- f fs in- i Fe ta e r	d- f fs in- i Fe ta e r	d- f fs in- i Fe ta e r
i f f ( 1) k h ) Ta E U R-c / W t r en	9. 2 7	6. 1 – 9. 8	8. 9
ion ( in ) Du t ra ea rs y	1 3	1 2	2 0
l le d i ( ) Ins ta ty 2 0 1 5 M W ca p ac	2, 1 0 0	7 0 0	3 6. 8
fo lue ins l le d c i ( ) Ta t v ta ty 2 0 2 0 M W rg e a r ap ac	2, 5 7 8	1, 4 4 0	1 5 0
dr Hy o
	d- in- i f fs Fe ta e r	d- in- i f fs Fe ta e r	d- in- i f fs Fe ta e r
f f ( 1) k h ) Ta i E U R-c / W t r en	3. 2 – 1 0. 4	4. 8 – 1 3. 6	4. 5 - 1 2. 0
( ) Du ion in t ra y ea rs	1 3	1 5	2 0
l le d ( ) Ins i 2 0 1 5 M W ta ty ca p ac	8, 3 7 0	3, 2 2 0	5 4. 7
lue fo l le d c ( ) Ta ins i 2 0 2 0 M W t v ta ty rg e a r ap ac	8, 9 9 8	3, 2 8 8	-
ho l P ic to ta vo
	d- f fs Fe in- i ta e r	d- f fs Fe in- i ta e r	d- f fs Fe in- i ta e r
f f i ( 1) k h ) Ta E U R-c / W t r en	1 0. 0 – 1 1. 5	8. 6 – 3 7. 3	1 2. 0 - 1 6. 0
( ) ion in Du t ra y ea rs	3 1	2 0	1 5
l le d ( ) i 2 0 Ins ta ty 1 5 M W ca p ac	3 0 5	0 2 8 1,	6. 6 1
lue fo l le d c ( ) ins i 2 0 2 0 Ta t v ta ty M W rg e a r ap ac	3 2 2	3 0 3	8 1

Sources: "Investieren in Erneuerbare Energie 2015", Kommunalkredit; 503. Verordnung: Änderung der Ökostrom-Einspeisetarifverordnung 2012 (ÖSET-VO 2012) http://www.e-control.at/portal/page/portal/medienbibliothek/oeko-energie/dokumente/pdfs/BGBLA_2013_II_503-novelle-oekostrom-einspeisetarif-vo-2012.pdf

1) In countries with tariffs in local currencies, tariffs have been converted with the exchange rate as of 01.07.2016.

2) "Installed capacity 2015" relates to estimates and assumptions due to available information as of 01.07.2016.

22Regulation,market environment and strategy

Challenging market environment

Source: EVN; September 2016

General strategic group objectives

Lower Austria

• Maintaining the integrated business model
• Keep high level of supply security through grid investments
• Diversified generation portfolio with focus on renewables
• Expansion of the drinking water and heating activites
• Development of customer oriented energy services and solutions
• Maintaining EVN's strong brand recognition

SEE

• Strong focus on operational improvements and efficiency in the grid business
• Cash-flow-driven investment activities
• International project business
• Participation in international tender procedures

• Greatest possible exclusion of country and political risks

• CAPEX exceeding depreciation

• Underlying growth of "Regulated Asset Base" in the focus
• Increased investment activities in regulated and stable business fields
• Transparency of the Austrian incentive regulation enables EVN to predictably plan profits and supports investments
• Major investment projects are being pre-agreed with the regulator
• EVN continues to be highly efficient
• Benefits from decrease of general productivity factor in the electricity and gas grid due to prior outperformance of productivity targets

Generation approach

Using opportunities for thermal production

• Providing reserve capacitiy for Southern Germany
• − EVN's gas-fired power plants under contract until 2017/18
• Allocation of balancing energy and congestion management for the Austrian TSO

Expansion of renewable capacities

• Expansion of renewable generation
• − Attractive long term guaranteed feedin tariffs for wind power
• Mid term target: from 250 MW to>300 MW wind power

Generation Mix

Ongoing operational improvements in SEE

• Further reduction of grid losses
• Further increase of cash collection rates
• Organisational optimisation
• Investment activities determined by regulatory tariff decisions and resulting operating cash flows
• On-going development of international energy procurement strategies tailored to respective market needs

• Energy needs resulting from grid losses, market shortages or liberalisation

• EVN at a glance

• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Contact details

# 1	l d h k i S t o o m e m a r e
# 2	k S i i t t t r o n g m a r e p o s o n
# 3	f f h h l d d b l b i i i H t t g s a r e o e a r n n g s r o m r e g u a e a n s a e u s n e s s
# 4	d l i i i U S E E t t p s e p o e n a n
# 5	f h h l b i i i i i i D t t t e r s c a o n r o g e n r o n m e n a s n e s s v u v u
# 6	S i i t t t t r a e g c n e s m e n s v
# 7	l d l S i i t t t o c a p a s r u c u r e

# 1: Lower Austria –EVN's prosperous domestic market

Province of Lower Austria at a glance:

A r e a :	2 k 1 9, 1 8 6 m (~ l f f l d ) H i S i t a s e o e r a n z w z
l ( ) i 2 0 P 1 4 t o p u a o n	6 2 8 1, 5, 4 5
l l i i E t c o n o m c a a c e y v l i 6 1 5- 4 t p o p a o n, e a r s u y ( ) 2 0 1 4 :	7 2 8 % ( ) A i 7 2. 3 % t s r a u :
( ) i G D P 2 0 1 4 t p e r c a p a :	) 1 E U R 3 1, 1 0 0 ( i A E U R 3 8, 5 4 0 t u s r a : ; ) G 3 2 0 E U R 5, 5 e r m a n y :

Sources: Statistics Austria; Eurostat; World Bank

# 1: Solid home market

• The Austrian electricity market continues to be stable1)
• Increase in number of households (more senior citizens and single households)
• Increase in demand for transport sector, lighting, electronic data processing applications, heating and air conditioning
• Continuous growth in Lower Austrian electricity consumption

	lec ic i ion in E tr ty t co ns um p
h in T W	Au ia tr s	Ge rm an y
( ) 2 0 1 4 Jan -D ec	6 9, 2 9	5 2 9, 3 7
( ) 2 0 1 5 Jan -D ec	6 9, 5 1	5 2 0, 6 1
C ha ( % ) ng e	0, 3 %	% -1, 7

Outlook on electricity consumption in Lower Austria2)

1) Source: European Network of Transmission System Operators for Electricity (www.entsoe.eu) 2) Source: EVN EVN's success drivers

31

• No nuclear power generation
• Public vote in the 1970s against nuclear power
• High share of hydropower assets
• 69%1) of Austrian electricity generation sourced from hydropower

Electricity production in Austria per energy source(in %)

• In 2014, #1 in EU at share of renewable energy sources in electricity generation measured by the country's land area2) (76% of Austrian electricity generation sourced from renewable energies)
• Further renewable energy projects are in the planning or implementation process

¹⁾ Source: Oesterreichs Energie (www.oesterreichsenergie.at); data from ²⁰¹⁴

²⁾ Source: Energiestatus Österreich 2014, Bundesministerium für Wirtschaft, Familie und Jugend

# 1: Characteristics of the Austrian utility market

2) Source: https://www.statistik.at/web_de/frageboegen/private_haushalte/eu_silc/index.html

3) Source: http://www.rwi-essen.de/media/content/pages/publikationen/rwi-projektberichte/rwipb_energieverbrauch-priv-hh.pdf

EVN's success drivers ³³

# 2: Strong market position in Austria

Market shares refer to FY 2014/15; EVN holds a 45% stake in EAA & Partners and a 16.51% stake in EconGas (EVN's stake in EconGas has been sold to OMV with effect from May 2016)

Source market shares: E-Control 2014, annual report and company numbers

Source churn rates: E-Control, market statistics –consumer attitude/churn rates electricity and gas according to network areas EVN's success drivers³⁴

# 2: Decentralised renewableproduction portfolio

Map of Lower Austria

• #2 wind producer in Austria
• Strong, decentralised portfolio
• 5% of EBITDA1)
• Hydropower 232 MW
  • 5 storage and 67 run-of-river hydropower plants
  • Purchasing rights from hydropower plants along the Danube (Melk, Greifenstein and Freudenau)
  • Investment in hydropower plant Nussdorf and Verbund-Innkraftwerke
• Windpower 253 MW
  • 16 windparks
  • Investments: EUR ~322m

# 2: Wide-spread heat and biomass portfolio

Map of Lower Austria

• #1 in biomass heating in Austria
• 6.7% of EBITDA1)
• Biomass portfolio
• More than 60 biomass plants in Lower Austria
• Investments (in total): EUR 470m
• Contract duration: ø 15 years
• Heat extraction from EVN AG's thermal power plants
• Index pricing ensures business provides stable margins and is cash flow generative

# 2: Drinking water supply

Map of Lower Austria

• #1 drinking water supplier in Lower Austria (50 years of experience)
• 2.3% of Group EBITDA1)
• Operation of 36 local drinking water supply networks
• ~ 563,000 customers
• thereof 101,300 directly supplied
• Construction of natural filter plants
• Reduction of the hardness level of water by natural means

# 3: High share of earnings from regulated and stable business

• Majority of 2014/15 EBITDA (82%) derives from regulated and stable earnings
• Regulated business
• Grid in Austria
• Grid, supply and heating in SEE
• Wind production in Austria and SEE

Unregulated business

• Energy trade and supply
• International environmental projects
• Generation

• Oil and gas E&P/gas storage

• Stable business

• Water supply business in Lower Austria (2.3%)
• Heating business in Lower Austria (6.7%)
• Cable TV and telecommunication (5.6%)
• Waste incineration in Lower Austria (5.2%)
• Earnings contribution from Burgenland Holding (1.4%)

# 3: Geographical split of revenues and EBITDA

Geographical revenue split1) Geographical EBITDA split1)

2)Financial year 2013/14 figures adjusted for major one-off effects

# 4: Bulgaria – EVN's focus in SEE

Bulgaria at a glance:

A r e a :	2 k 1 1 1, 0 0 0 m
l E V N 's s u p p y a r e a :	2 k 4 2, 0 0 0 m ~ f (~ i i l d ) S S t z e o w z e r a n
l ( ) i P 2 0 1 4 t o p u a o n	7, 3 6 4 5 7 0 ,
l l i i E t c o n o m c a y a c v e l i 1 5- 6 4 t p o p u a o n, y e a r s ( ) 2 0 1 4	6 2 2 % ( ) i 6 % A 7 5. t u s r a :
( ) G i 2 0 D P 1 4 t p e r c a p a	E U R 6, 4 2 0 ( A i E U R 3 8, 5 4 0 t u s r a : ; ) G E U R 3 5, 2 5 0 e r m a n y :

Sources: Eurostat, Bulgarian National Statistical Institute, World Bank EVN's success drivers

# 4: Macedonia – EVN's focus in SEE

Macedonia at a glance:

A r e a :	2 k 2 3 5, 7 1 m
l E V N 's s p p a r e a u y :	2 k 2 3 5, 7 1 m
l ( ) i 2 0 P 1 4 t o p a o n u	2, 0 6 6 9 5, 7
l l i i E t c o n o m c a a c e y v l i 1 5- 6 4 t p o p a o n, e a r s u y ( ) 2 0 1 4 :	6 3 % 5 ( ) A i 7 5. 6 % t u s r a :
( ) G D P i 2 0 1 3 t p e r c a p a	E U R 4 4 7 0 , ( i A E U R 3 8, 5 4 0 t u s r a : ; ) G E U R 3 5, 2 5 0 e r m a n y :

# 4: Business portfolio South East Europe

b i K r s s s e y e n e g y u n e	2 0 1 4 / 1 5	/– +
i d i t n c a o r s		in %
l lu i i i E t t t e c r c y g e n e r a o n v o m e s ( h) GW	9 4 5	2 3. 9
k d b lu N i i i t t t e o r s r o n o m e s w u v ( GW h)	1 3, 5 3 6	3. 9
l lu H t e a s a e s v o m e s ( h) GW	2 1 1	1 3. 8
d l l i i G E V N Bu r o s s e s g a r a ( %)	9 0 6. 8	–6 3
d l d G i E V N M i r o s s e s a c e o n a ( %)	9 0 3. 4	–1 1
l i i l i E C Bu t t t e c r c y u s o m e r s g a r a ( m) EUR	1. 7 m	–
l d i i C i E M t t t e c r c y u s o m e r s a c e o n a ( m) EUR	0. 8 m	–

Regulated grid business in Bulgaria and Macedonia

Gradually liberalisation introduced

Bulgarian and Macedonian regulators follow different approaches; large consuming customers already liberalised in both countries

Electricity procurement strategy in focus

Electricity procurement strategy as key factor for successful business in liberalised markets

Development of gas supply in Croatia ongoing

Mid-term sales quantity: ~40mm³

# 4: Upside potential from South Eastern European market development

1)In %, basis: Lower Austria = 100%, Basis: Sales volume 2014/15

2)Prices incl. energy, grid and transmission costs + VAT; Sources: Eurostat 2013 & 2014 + EVN Bulgaria & Macedonia 2014 & 2015

# 5: Diversification through environmental business

Austrian business

• EVN's activities in Austria cover
• Drinking water supply
• Wastewater treatment
• −Thermal waste utilisation plant
• EVN owns facilities
• EVN holds concessions

International project business

• EVN designs and constructs
• −Drinking water plants
• −Wastewater treatment plants
• Thermal waste utilisation plants
• More than 100 turn-key and PPP projects in 18 countries since 1983
• −8 projects currently under construction
• Strong demand for infrastructure projects set to continue

# 5: Project types of international environmental services business

	k j T t r n- e p r o e c u y	j P P P t p r o e c
f i i i S t t c o p e o a c e s v	D i e s g n b l d C / i t t o n s r c u u ( l ) O i t t p e r a e o p o n a	D i e s g n b l d C / i t t o n s r c u u O t p e r a e f S i i t t r u c u r e n a n c n g l l f O i t t w n p a r o r a o e q u y
l h C t t t o n r a c e n g	( d d b l d ) 3 i i i i 1– y e a r s e s g n n g a n u n g ( ) i 5– 1 5 t y e a r s o p e r a o n s	0– 3 0 1 y e a r s
l C i i i t t t a p a n e n s y	L o w	h i H g
h i i R t t t e u r n c a r a c e r s c s	d b l d i i O C D P e s g n a n u – l i i O t p e r a o n s – r e c u r r n g a n n u a r e v e n u e s	d b l d f i i D P t e s g n a n u e r c e n a g e o – l ( ) i P O C t c o m p e o n l O i i t p e r a o n s – r e c u r r n g a n n u a r e v e n u e s l h ( C i i t t a p a c a r g e p a y m e n r e c u r r n g o r o n e ) i t t m e p a y m e n
i i F n a n c n g	d b N E V N t t o n e o o n e c s o m e r y u –	f N i i E V N t t o n- r e c o r s e n a n c n g o p o s u i i d t t c o n s r u c o n p e r o
k M t a r e h i i t t c a r a c e r s c s	b i i i L t t t o w a r r e r o e n r y n e n s v e – d d i i i i i t t c o m p e o n r v n g m a r g n s o w n	i h b i d H t t t g a r r e r o e n r y u e o n e c e s s a r y d h h j i i t t t p r o e c m a n a g e m e n e x p e r s e a n g l d d f f i i i t c a p a e m a n s o r n a n c n g

# 6: Strategic investments

Significant contribution to EVN's net profit

• RAG and Verbund are the main contributors
• Income from RAG above prior-year's level
• Contribution from Verbund AG decreased due to reduced dividend for 2014 of0.29 EUR/share after 1.00 EUR/share for 2013 (thereof 0.45 EUR/share extraordinary dividend)

# 7: Solid capital structure

• Solid equity ratio
• Reduced net debt; gearing ratio improved
• Rating
• S&P: BBB+, stable
• −Moody's: A3, stable

EVN aims at preserving a competitive investment grade credit rating

# 7: Debt maturity profile

Long-term debt maturity profile

• Liquidity reserves
• Syndicated loan of EUR 400m
• Committed bilateral credit lines of EUR 175.0m

BondsBank debt

# 7: Strong operating cash flow

• Strong cash flow due to high share of regulated and stable business
• Operating cash flow
• Covers investments
• Secures attractive dividend payments
• CAPEXgross exceed depreciation by 24% and secure RAB
• 50% of Group investments in the regulated "network infrastructure Austria"
• Investment program with a strong focus on RAB-growth
• Ø future RAB growth 3–4% p.a.

Financial policy going forward based on selected key ratios (unadjusted):

• Equity ratio > 40% (30.09.2015: 39.8%)
• Net debt coverage (FFO) ≥ 30% (30.09.2015: 48.4%)
• Interest cover (FFO) ≥ 5x (30.09.2015: 7.4x)
• Dividend: EVN follows an attractive and sustainable dividend policy

Dividend per share (in Euros)

• EVN at a glance
• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Contact details

Investments 2014/151)

• Energy Trade and Supply
• Generation

Key investments

• Network infrastructure Austria
• Commissioning (37 MW) of windparks in Lower Austria
• Expansion of heat networks and biomass capacities in Lower Austria
• Expansion of the network infrastructure and replacement of meters in SEE
• Investments in natural gas network in Croatia

1) In intangible assets and property, plant and equipment

• EVN at a glance
• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Contact details

Increase in electricity generation

• Commissioning of new 37 MW windpark Prottes-Ollersdorf
• Favourable wind and water flows for renewable generation
• Short-term use of natural gas-fired power plants to ensure network stability
• First full-year operation of the Duisburg-Walsum power plant
• Improvement of operating business in South East Europe and absence of prior year's negative one-offeffects and impairment losses
• Agreement with the city of Moscow on the sale of the sodium hypochlorite plant
• Increase in EBITDA, EBIT and group net result

Key financials 2014/15

	2 0 1 4 / 1 5	/– +
	E U Rm	in %
R e e n e v u	2, 1 3 5. 8	8. 2
E B I T D A	5 8 3. 2	-
d i i i i D t t t e p r e c a o n a n a m o r s a o n	-2 6 0. 3	-1 7
f f f i i E t t t t e c s r o m m p a r m e n e s s	-5 4. 7	7 9. 7
E B I T	2 6 8. 2	-
i i l l F t n a n c a r e s s u	-6 0. 3	-8 8. 9
l G t t r o u p n e r e s u	1 4 8. 1	-
h f l f N t e c a s o w r o m
i i i i t t t o p e r a n g a c e s v	4 7 8. 3	-1 2. 4

h i E a r n n g s p e r s a r e	0. 8 3	-

Increase in revenues

• Rise in electricity generation
• Growth in natural gas trading activities
• Positive contribution from Bulgaria and Macedonia
• Improvement in EBITDA, EBIT and group net result
• Sale of sodium hypochlorite plant Moscow
• Improvement of operating business
• Absence of last year's one-off effects

Decrease in financial result

Lower dividend from Verbund

Solid balance sheet structure, reduced net debt

• Improvement of equity ratio to 39.8% (previous year: 38.5%)
• Reduction of net debt to EUR 1,230.9m (previous year: EUR 1,622.4m)
• Gearing decreased from 61.6% to 47.5%

EBITDA development by segments

Generation

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

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

Increase of electricity production and revenue

Rise in EBITDA and EBIT

• Increased purchase costs for energy carriers almost fully offset by optimisation measures for thermal power plants
• Increase in depreciation
• Impairment losses

Energy Trade and Supply

1) d i E t n c u s o m e r p r c e s	/- in % +	d j A tm t us en
l d i i E t t e c r c y a n g a s	0 % -5	0 1. 1 0. 2 0 1 5
l i i d E t t e c r c a n g a s y	% -1 0. 0	0 1. 1 0. 2 0 1 4
l l S t a e s v o u m e s o	2 0 1 4 / 1 5	/– +
d t e n c s o m e r s u	h G W	in %
l i i E t t e c r c y	6, 8 0 4	0. 3
l N t a u r a g a s	2 5, 4 1	-2 6
H t e a	1, 8 2 7	1. 2
	2 0 1 4 / 1 5	/– +

i i l f F n a n c a p e r o r m a n c e	E U Rm	in %
R e v e n u e	4 8 5. 8	8. 3
E B I T D A	-2 9	-
E B I T	-2 0. 6	-

Different development of sales volumes

• Slight increases in electricity and heat sales volumes
• Small decline in natural gas sales volumes (mainly due to lower volumes in the household segment)

Revenue growth, but lower EBITDA and EBIT

• Energy sales from Duisburg-Walsum power plant and expansion of natural gas trading activities have positive impact on revenue
• Provisions for onerous contracts related to the marketing of EVN's own electricity production

in % /- +	d j A tm t us en
% -1 0	0 1. 0 1. 2 0 1 5
-3 0 %	0 1. 0 1. 2 0 1 5
	/– +
G W	in %
8, 1 2 1	3. 1
9 8 1 4, 5	9 5.
2 0 1 4 / 1 5	/– +
E U Rm	in %
4 7 2. 0	-2 6
2 0 1. 2	7. 7
9 5. 5	1 4. 7
	2 0 1 4 / 1 5 h

2)Including network sales to EVN's power stations

Increase in network distribution volumes

• Higher electricity and natural gas distribution volumes across all customer segments
• Additional positive volume impact on gas distribution from use of EVN's gas-fired power plants

Improvement in EBITDA and EBIT

• Increase in other operating income (due to increased work in progress)
• Cost reductions and lower additions to personnel provisions

Continued investment focus on supply security

Network Infrastructure Austria accounts for almost 50% of EVN's total investments 1) Average; according to the Austrian regulator Business development 2014/15⁶⁰

Energy Supply South East Europe

d E t n c u s o m e r	1) i p r c e s	in % /- +	d j A tm t us en
l i B u g a r a	l i i t t e e c r c y	% -0 4	0 1. 0 8. 2 0 1 5
		9. 7 %	0 1. 1 0. 2 0 1 4
	h t e a	-0 % 7	0 1. 1 0. 2 0 1 5
		% -7 0	0 1. 0 7. 2 0 1 5
d M i a c e o n a	l i i t t e e c r c y	-0 3 %	0 0 2 0 1. 7. 1 5
		% 3. 5	0 1. 0 7. 2 0 1 4

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

	2 0 1 4 / 1 5	/– +
l f i i F n a n c a p e r o r m a n c e	E U Rm	in %
R e v e n u e	0 3 8. 1, 1	2 1 5.
E B I T D A	1 2 0. 7	-
E B I T	5 7. 8	-

Positive development of key energy business indicators

• Increase of electricity production
• Weather-related growth of electricity network distribution volumes and heat sales volumes

Revenue, EBITDA and EBIT increase

• Revenue growth due to higher sales volumes and higher end customer prices
• Absence of prior year's one-off effects

1) Average; household sector; according to regulators in Bulgaria and Macedonia

2) Energy sales volumes in Bulgaria and Macedonia fairly equal to network distribution volumes

Environmental Services

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

Decline in revenue

• Lower revenues from international projects business
• Partly offset by higher revenues from drinking water supplies in Lower Austria

Improvement in EBITDA and EBIT

• Positive effect from sale of sodium hypochlorite plant in Moscow
• Transfer of plant completed in March 2015 after successful 72-hour test
• Absence of previous year's one-off effects

Positive progress in the international projects business

Completion of wastewater treatment projects in Poland, Romania and Cyprus

Cash flow

	2 0 1 4 / 1 5	/– +
	E U Rm	in %
G C F r o s s	3 8. 4 1	2 9. 8
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 e s v	4 7 8. 3	-1 2. 4
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	-7 2. 7	7 0. 1
f f C i i i i i N F t t t e r o m n a n c n g a c v e s	-3 3 5 7.	-6 7
h i h N t e c a n g e n c a s
d h l i t a n c a s e q u v a e n s	8. 3 4	-

Increase of gross cash flow

Strong operating performance

Decline in operating cash flow

Due to changes in working capital related to non-recurring effects in 13/14

Cash flow from investing activities improved

Cash flow from financing activities

Influenced by sale of sodium hypochlorite plant

• Adjustment of Austrian network tariffs for electricity and gas by the regulator as of 1 January 2016
• Increase of electricity network tariffs1): + 11.0%
• Increase of gas network tariffs1): +11.0%
• Group net result for 2015/16 is expected to remain largely stable
• EVN's strategy remains unchanged
• Commitment to integrated business model
• Focus on supply security through ongoing network expansion
• Further increase of renewable generation capacities in Lower Austria
• Consolidation of energy business in South East Europe

Appendix

• EVN at a glance
• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Contact details

EVN's Management Board

Peter Layr, Spokesman of the Executive Board

• Born in 1953. Doctorate in Technical Science. Joined EVN in 1978.
• Member of the EVN Executive Board since October 1999. Named Spokesman of the EVN Executive Board in January 2011.
• His term of office expires on 30 September 2019.

Stefan Szyszkowitz, Member of the Executive Board

• Born in 1964, Master of Law, Master of Business Administration. Joined EVN in 1993.
• Member of the Executive Board since January 2011.

• His term of office expires on 19 January 2021.

• EVN at a glance

• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Contact details

Generation

• Electricity generation from thermal sources and renewable energies (Austria, Germany, Albania and Bulgaria)

Energy Trade and Supply

• •Procurement of electricity and primary energy sources (Austria and Germany)
• • Trading and selling of electricity and natural gas to end customers and on wholesale markets (Austria and Germany)
• •Heat generation and sales (Austria)

Network Infrastructure Austria

• •Operation of regional electricity and natural gas networks (Austria)
• •Cable TV and telecommunications networks (Austria)

Energy Supply South East Europe

• •Operation of electricity networks and electricity sales (Bulgaria and Macedonia)
• •Heat generation and heat sales (Bulgaria); Electricity production (Macedonia)
• •Construction and operation of natural gas networks (Croatia)
• •Energy trading within the whole region

Environmental Services

• •Drinking water supply, wastewater disposal, thermal waste incineration (Austria)
• •Combined cycle heat and power co-generation plants

• •International project business

• EVN at a glance

• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Keep up with EVN

Strong brand through Corporate Social Responsibility

• Integration of CSR in EVN's strategy: focus on 12 material CSR areas of activity
• External communication and evaluation of EVN's CSR performance
• Comprehensive CSR organisation (CSR steering comittee, CSR advisory team, more than 40 CSR network officers)
• Intense stakeholder dialogue:
• EVN Advisory Board for the Environment and Social Responsibility, EVN Customer Advisory Board, EVN Social Fund and EVN Art Advisory Board, complaint management, stakeholdersurveys, project mediation, etc.

EVN – A responsible energy and environmental services provider

Sustainable Investment: listed in 4 sustainability indices(VÖNIX, FTSE4Good, Ethibel, ECPI)

Reporting to the Carbon Disclosure Project (2015 result: 91C)

CSR reporting: EVN publishes an integrated financial and sustainabilty report according toGRI G4"comprehensive"

Member of the UN Global Compact

EMAS certified environmental management system

Sustainability issues are integrated in EVN's corporate strategy – its actual implementation is facilitated by an extensive CSR organisation:

lementation

• The most recent stakeholder survey and workshop in 2014 resulted in EVN's materiality matrix consisting of 12 strategic areas of activity
• The six most important areas and examples for CSR goals are:
• Security of supply CSR goal: coverage ratio of 30% of electricity sales
• Sustainable energy generation and climate protection–CSR-goal: 50% generation from renewables
• Responsible employer CSR goal: Increased share of women in new hiring and in management development programmes
• Sustainable increase in corporate value – CSR goal: integration of sustainability aspects in risk management
• Environmental protection and resource conversation
• Customer focus

• The extensive CSR programme consists of more than 250 goals and measures (a comprehensive selection is listed in EVN's full report)

• EVN at a glance

• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Contact details

Case Study: RAG – Rohöl-Aufsuchungs AG1)

EURm

Other revenues

1) Source: RAG, Annual report 2015 according to IFRS CER = Compulsory Emergency Reserves

Case Study: RAG – Rohöl-Aufsuchungs AG1)

d i i i P t t t t r o u c o n s a s c s		2 0 1 5
d G i t a s p r o u c o n	³ m m	2 2 9. 3
2) l G a s s a e s	³ m m	6 6 0, 6
l d O i i t p r o u c o n	t	6, 0 0 1 1 4
l l O i s a e s	t	1 1 7, 6 0 0
l k O i i t t t a n s o r a g e c a p a c y	t	2 6 0, 0 0 0

l N t t a u r a g a s s o r a g e
( f ) C i 3 2. 2 0 1. 1 1 5 t a p a c y a s o	³ m m	5, 8 1 2

Core areas of business

• Oil and natural gas E&P
• Natural gas storage

Concessions

• Austria (5,414 km²)
• Germany (4,577 km²)
• Hungary (3,391 km²)
• Romania (1,106 km²)

Storage facilities(Salzburg, Upper Austria)

• Haidach (JV with Gazprom & Wingas; 2,640 m m³)
• Aigelsbrunn (130 m m³)
• Nussdorf/Zagling (229 m m³)
• Puchkirchen (1,080 m m³)

• 7Fields (1,733 m m³)

• EVN holds a 50.03% stake in RAG through its fully consolidated subsidiary RAG-Beteiligungs-Aktiengesellschaft

• 100% of RAG earnings are recognised as share of profit of equity accounted investees with operational nature
• 49.97% of RAG earnings assigned to minority interest

• EVN contractually not entitled to exercise a controlling influence over RAG

• EVN at a glance

• Regulation, market environment and strategy
• EVN's success drivers
• Investments
• Financial performance FY 2014/15
• Appendix
• Management Board
• Description of segments
• CSR
• RAG
• Contact details

Additional information

Stefan Szyszkowitz, CFOPhone: +43 2236 200-12132E-mail:stefan.szyszkowitz@evn.at

Investor Relations:Gerald Reidinger

Phone: +43 2236 200-12698E-mail:gerald.reidinger@evn.at

Matthias Neumüller

Phone: +43 2236 200-12128E-mail:matthias.neumueller@evn.at

Doris Lohwasser

Phone: +43 2236 200-12473E-mail:doris.lohwasser@evn.at

Investor information on theweb

www.evn.atwww.investor.evn.atwww.responsibility.evn.atE-mail: investor.relations@evn.at

EVN AG

HeadquartersEVN Platz2344 Maria Enzersdorf

Financial calender

www.investor.evn.at/financial-calenderNext event: Results FY 2015/16, 13 December 2016

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.