EVN AG — Investor Presentation 2016

Jul 6, 2016

EVN Company presentation January 2015

• EVN at a glance
• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − 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 30.09.2014)

Energy business – 6 countries

1) Thermal waste utilisation plant, drinking water supply

Strategic investments

Lower Austria – EVN's prosperous domestic market

Province of Lower Austria at a glance:

Area:	19,186 km2 (~ Half size of Switzerland)
Population (2014)	1,625,485
Economically active population, 15-64 years (2013):	73.3% (Austria: 72.3%)
GDP per capita (2013):	EUR 31,1001) (Austria: EUR 38,050; Germany: EUR 33,355)

Bulgaria – EVN's focus in SEE

Bulgaria at a glance:

Area:	111,000 km2
EVN's supply area:	~42,000 km2 (~ Size of Switzerland)
Population (2014)	7,364,570
Economically active population, 15-64 years (2014)	62.2% (Austria: 75.6%)
GDP per capita (2013)	EUR 12,000 (Austria: EUR 36,930; Germany: EUR 33,343)

Macedonia – EVN's focus in SEE

Macedonia at a glance:

Area:	25,713 km2
EVN's supply area:	25,713 km2
Population (2014)	2,065,769
Economically active population, 15-64 years (2014):	65.3% (Austria: 75.6%)
GDP per capita (2013)	EUR 8,868 (Austria: EUR 36,930; Germany: EUR 33,343)

Contribution by business segments for 2013/141)

Revenue split2) EBITDA split2)

Financial figures 2013/14

		y-o-y
EURm	2013/14	in %	2012/13
Revenue	1,974.8	–6.2	2,105.9
EBITDA	184.1	–65.9	540.0
EBIT	–341,4	–	242,2
Group net profit	–299.0	–	109.3
Net cash flow from operating activities	546.0	–4.2	570.0
Investments1)	396.3	6.3	372.9
Balance sheet total	6,841.8	–6.1	7,283.7
Equity	2,632.7	–14.5	3,079.2
Equity ratio	38.5%	–	42.3%
Net debt	1,622.4	–10.3	1,809.6
Gearing	61.6%	–	58.8%

The EVN share

Basic information

Tickers

ISIN AT000741053 EVNV.VI (Reuters); EVN AV (Bloomberg); EVN (Dow Jones); EVNVY (ADR)

^2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

• EVN at a glance
• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − Contact details

Market environment

• Distorted energy markets
• − Market design under discussion
• − Increasing share of volatile renewable production supported by subsidised feed in tariffs
• − Deterioration of wholesale electricity prices
• − Operation of state-of-the-art gas-fired power plants actually unprofitable
• Uncertainty in economic environment
• − Weak economic growth
• Political instability
• − Especially in South Eastern Europe

Energy price developments

Source: EVN; November 2014 Market environment and strategy 15

-14 -15

Network	Electricity	Gas	Comments
Regulatory authority	E-Control GmbH	E-Control GmbH
Start of the regulatory period	01.01.2014	01.01.2013
Next regulatory adjustment	01.01.2019	01.01.2018	Adjustment of WACC and productivity factors
Duration of the regulatory period	5 years	5 years
Regulatory method	Revenue caps	Revenue caps
RAB (EURm)	Annually adjusted	Annually adjusted	Annual investments are added to the RAB in the following year
WACC (pre-tax, nominal)	6.42%	6.42%	Set for length of regulatory period
General productivity factor	1.25%	1.95%	Electricity: 50% of the achieved productivity increases are passed on to end customers during the regulatory period Natural gas: Gains from cost reductions remain with the company during the regulatory period
Company specific productivity factor	0.36%	0.00%	Additional X factor is company specific
Inflation	Annual adjustment	Annual adjustment	Network operator price index consists of consumer (30%) and building price (40%) indices as well as wage increase index

Regulated business in South Eastern Europe

Electricity	Bulgaria1) (electricity)	Bulgaria (heat)	Macedonia (electricity)
Regulatory authority	SEWRC (State Energy and Water Regulatory Commission)	SEWRC (State Energy and Water Regulatory Commission)	ERC (Energy Regulatory Commission)
Start of the regulatory period	01.08.2013	01.07.2014	01.07.2012
Next regulatory adjustment	01.08.2015	01.07.2015	01.07.2015
Duration of the regulatory period	2 years	1 year	3 years
Regulatory method2)	Revenue caps	Rate of return on capital	Revenue caps
RAB (EURm)	Annually adjusted	Annually adjusted	Annually adjusted
WACC (pre-tax, nominal)	7.0%	7.6%	6.7%
Recognised network losses	8.0%	20,0 %	14.0%
Productivity factor	Yes	Yes	No
Investment factor3)	No	No	Yes

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 (SEWRC) and in Macedonia (ERC) Market environment and strategy 17

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

EVN's position within the value chain in SEE

Price development in Macedonia – regulated HH tariff (EUR2)/MWh)

• Energy supply for regulated business is performed by EVN Bulgaria EC and EVN Macedonia
• Price increases in "Energy supply" mainly due to increased electricity procurement costs for EVN from governmental owned suppliers NEK and ELEM!

Tariff schemes 2015 for renewable energy sources

Renewable energy source	Austria	Bulgaria	Macedonia
Wind
	Feed-in-tariffs	Feed-in-tariffs	Feed-in-tariffs
Tariff (EUR-cent1)/kWh)	9.27	6.1 – 9.8	8.9
Duration (in years)	13	12	20
Installed capacity 2014 (MW)	2,100	674	36.8
Target value for installed capacity 2020 (MW)	2,578	1,440	150
Water
	Feed-in-tariffs	Feed-in-tariffs	Feed-in-tariffs
Tariff (EUR-cent1)/kWh)	3.2 – 10.4	4.8 – 13.6	4.5 - 12.0
Duration (in years)	13	15	20
Installed capacity 2014 (MW)	8,370	3,164	26.4
Target value for installed capacity 2020 (MW)	8,998	3,288	-
Photovoltaic
	Feed-in-tariffs	Feed-in-tariffs	Feed-in-tariffs
Tariff (EUR-cent1)/kWh)	10.0 – 11.5	8.6 – 37.3	12.0 - 16.0
Duration (in years)	13	20	15
Installed capacity 2014 (MW)	530	1,049	12.1
Target value for installed capacity 2020 (MW)	322	303	18

Sources: "Investieren in Erneuerbare Energie 2014", 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 01.07.2014.

2) "Installed capacity 2014" relates to estimates and assumptions due to available information as of 01.02.2013. Market environment and strategy

• Virtue of integrated business model
• Focus on region of Lower Austria (multi-utility in Lower Austria)
• Provider of high quality services
• − Electricity, gas, drinking water, wastewater treatment, thermal waste utilisation, cable TV, telecommunication
• Focus on stable business
• − Regulated and non-regulated
• Provide consistent dividends
• Upside potential in
• − Renewable energy production (mainly wind)
• − South Eastern Europe

• − Environmental services

• EVN at a glance

• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − Contact details

# 1	Solid home market
# 2	Strong market position
# 3	High share of earnings from regulated and stable business
# 4	Upside potential in SEE
# 5	Diversification through environmental business
# 6	Strategic investments
# 7	Solid capital structure

# 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
• Outlook electricity consumption in Lower Austria2)

	Electricity consumption in
in TWh	Austria	Germany
2013 (Jan-Dec)	61,5	555,1
3) 2014 (Jan-Dec)	61,0	534,0
Change (%)	-0,81%	-3,80%

Source: Austria www.econtrol.at, Germany: www.ag-energiebilanzen.de

3) December 2014 consumption: preliminary figures

• − Public vote in the 1970s against nuclear power
• High share of hydropower assets
• − 67%1) of Austrian electricity generation sourced from hydropower

− In 2013, #1 in EU at share of renewable energy sources in electricity generation measured by the country's land area2) (75% 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 2013

Low customer churn rates

Electricity market 2013:

• − Churn rate of Austrian end customers: 1.9%1)
• − 5 largest suppliers hold more than 2/3 of market share2)

Gas market 2013:

• − Churn rate of Austrian end customers: 2.5%1)
• − 5 largest suppliers hold approximately 80% of market share2)

In Austria, electricity and gas account for only 4.5% of household income (Germany: 6.0%)3)4)

• Low political risk
• − Transparent and predictable regulatory framework
• − High proportion of public ownership (regulated by law)
• − Public views utilities as basic public service
• No major foreign competition of suppliers
• − Fairly small market size with prices at EU average

¹⁾ Source: E-Control, market statistics – consumer attitude/churn rates electricity and gas according to network areas;

²⁾ Source: "Marktbericht 2013", National report to EU Commission

³⁾ Source: http://www.statistik.at/web\_de/frageboegen/private\_haushalte/eu\_silc/index.html#index10

⁴⁾ Source: Forschungsprojekt Nr. 54/09 des BMWi, "Erhebung des Energieverbrauchs der privaten Haushalte für die Jahre 2009-2010" (pdf)

# 2: Strong market position in Austria

Source market shares: E-Control 2012, annual report and company numbers

Source churn rates: E-Control, market statistics – consumer attitude/churn rates electricity and gas according to network areas EVN holds a 45% stake in EAA & Partners and a 16.51% stake in EconGas

# 2: Decentralised renewable production portfolio

Hydropower

• 5 storage and 67 run-of-river hydropower plants with 109 MW generation capacity
• Purchasing rights from hydropower plants along the Danube, Melk, Greifenstein and Freudenau
• Investment in hydropower plant Nussdorf and Verbund-Innkraftwerke

Windpower

• 13 windparks with 197 MW generation capacity
• Investments: EUR ~230m

Map of Lower Austria

# 2: Wide-spread heat and biomass portfolio

Map of Lower Austria

#1 in biomass heating in Austria

5% of Group revenues and 6% of EBITDA1)

Biomass portfolio

• − More than 60 biomass plants in Lower Austria
• − Investments (in total): EUR 400m
• − 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)
• 1.5% of Group revenue and 3.1% of Group EBITDA1)
• Operation of 36 local drinking water supply networks
• More than 500,000 customers
• − thereof 87,000 directly supplied

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

• Majority of EBITDA1) (~70%) derives from regulated or stable earnings
• Regulated business
• − Grid in Austria
• − Grid, supply and heating in 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 (3.1%)
• − Heating business in Lower Austria (6.0%)
• − Cable TV and telecommunication (5.3%)
• − Waste incineration in Lower Austria (5.3%)

# 4: Upside potential from South Eastern European market development

Illustrative electricity sales volumes per EVN customer1)

Electricity prices for households (EUR cent/kWh)2)

Improvement of grid efficiency

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

Austrian business 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
• − 9 projects currently under construction
• Strong demand for infrastructure projects set to continue

# 5: Project types of international environmental services business

	Turn-key project	PPP project
Scope of activities	Design Construct/build Operate (optional)	Design Construct/build Operate Structure financing Own part or all of equity
Contract length	1–3 years (designing and building) 5–15 years (operations)	10–30 years
Capital intensity	Low	High
Return characteristics	Design and build – POC Operations – recurring annual revenues	Design and build – Percentage of completion (POC) Operations – recurring annual revenues Capital charge payment (recurring or one time payment)
Financing	None to EVN – done by customer	Non-recourse financing to EVN post construction period
Market characteristics	Low barrier to entry – intensive competition driving margins down	High barrier to entry due to necessary project management expertise and high capital demands for financing

# 6: Strategic investments

EURm

Significant contribution to EVN's net profit

• RAG and Verbund are the main contributors
• Income from RAG below prior-years level mainly due to absence of positive oneoffs in 2012/13
• Contribution from Verbund increased due to higher dividend for 2013 of 1.00 EUR/share

# 7: Solid capital structure1)

• Solid equity ratio
• Reduced net debt; gearing ratio influenced by slightly decreased equity
• Rating
• − S&P: BBB+, stable
• − Moody's: A3, negative
• EVN aims at preserving a competitive investment grade credit rating

# 7: Debt maturity profile

Bank debt Bonds

# 7: Strong operating cash flow

• Strong cash flow
• − due to high share of regulated and stable business
• − secures attractive and stable dividends and future investment activities

# 7: Financial policy and dividends

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

• Equity ratio > 40% (30.09.2014: 38.5%)
• Net debt coverage (FFO) ≥ 30% (30.09.2014: 41.3%)
• Interest cover (FFO) ≥ 5x (30.09.2014: 8.1x)

• Dividend: EVN follows an attractive and sustainable dividend policy

• EVN at a glance

• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − Contact details

Outlook

On energy markets

• Persistent distortions
• Low wholesale prices
• Volatility in production

On EVN

• 2014/15: Group net result is expected to exceed the 2012/13 financial results
• EVN's strategy:
• Consolidation of existing business in core markets
• Further increase of efficiency
• Focus on integrated business model
• Continued investment priority in Lower Austria

Appendix

• EVN at a glance
• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − 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 2016.

• EVN at a glance

• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − Contact details

Energy business impacted by price developments and mild winter

• EUR ~560m impairments and valuation allowances:
• − Tariff decisions in Bulgaria and Macedonia
• − On generation capacities in Austria and Germany
• − On a leasing receivable of thermal utilisation plant no. 1 in Moscow
• − On the sludge treatment plant and components of the co-generation plant Ljuberzy in Moscow
• Negative Group net result of EUR –299,0m
• Net debt reduced by EUR 187.2m to EUR 1.6bn
• Dividend proposal constant at EUR 0.42 per share

Key financials

			+/–
	EURm	2013/14	in %
Revenue		1,974.8	–6.2
EBITDA		184.1	–65.9
Depreciation and amortisation		–256.0	–7.6
Effects from impairment tests		–269.5	–
EBIT		–341.4	–
Financial results		–31.9	55.3
Group net result		–299.0	–
Net cash flow from operating activities		546.0	–4.2
	EUR
Earnings per share		–1.68	–

Reduction in revenue

• Lower demand in the energy business due to the mild winter weather
• Regulatory decisions in Bulgaria and Macedonia
• Less processed orders in international project business

Year- on-year drop in EBITDA, negative EBIT

• Valuation allowance due to the thermal waste utilisation plant no. 1 in Moscow
• Impairments primarily driven by SEE investments

Improvement in financial results

Solid net cash flow from operating activities

• Equity ratio 38.5%
• Net debt reduced by EUR 187.2m due to strong net cash flow from operating activities
• Gearing ratio 61.6%

EBITDA development by segments

Generation

			+/–
Electricity generation volumes	GWh	2013/14	in %
Total		3,720	23.2
Renewable energy sources		1,534	–6.2
Thermal energy sources		2,186	57.9
Financial performance	EURm
Revenue		187.5	64.0
Results from at equity accounted investees with operational nature		–38.9	13.6
EBITDA		33.6	–
EBIT		–53.1	–43.6

Rise in power generation

• Commissioning of Duisburg-Walsum power plant and Prellenkirchen windpark; full-year operations in the Deutsch-Wagram windpark
• Lower production from renewables due to reduced water flows

Year-on-year rise in EBITDA , decrease in EBIT

• Revenue increase due to commissioning of Duisburg-Walsum and allocation of reserve capacity
• Increase in results from equity accounted investees in spite of impairment loss on Verbund Innkraftwerke
• Increase in depreciation due to recognition of impairment losses related to thermal (Austria) and renewable (Bulgaria) production capacities

Energy Trade and Supply

End customer price	adjustment1)
Electricity	1.10.2014	–10.0%
Natural Gas	1.10.2013	–3.6%
Sales volumes to			+/–
end customers	GWh	2013/14	in %
Electricity		6,787	–5.6
Natural gas		5,383	–15.0
Heat		1,806	–2.8

Financial performance EURm
Revenue	448.6	10.6
Results from at equity accounted investees with operational nature	55.2	44.2
EBITDA	55.3	93.5
EBIT	39.2	–

Decline in sales volumes

• Lower sales of electricity, gas and heat due to milder temperatures
• Lower sales volumes by EnergieAllianz

Increase in EBITDA and EBIT

• Rise in revenue primarily due to the sale of Duisburg-Walsum generated energy
• Absence of last year's negative effects led to better results from at equity accounted investees
• Higher operating expenses
• Depreciation remains nearly unchanged

Network Infrastructure Austria

Tariff adjustments1)
Electricity	1.1.2014	–9.0%
Natural gas	1.1.2014	7.7%
Network distribution			+/–
volumes	GWh	2013/14	in %
Electricity		7,874	–0.1
Natural gas2)		14,131	–7.2

Financial performance	EURm
Revenue		484.6	–2.6
EBITDA		186.8	–12.1
EBIT		83.3	–25.6

Lower distribution volumes

• Electricity: higher demand from industrial customers almost compensated lower demand from households and small businesses
• Natural gas: temperature-related drop

Reduction in EBITDA and EBIT

• Decrease in revenue:
• Lower electricity network revenues due to tariff reduction
• Lower gas network revenue because of temperature related decline in gas sales
• Positive revenue development in cable TV and telecommunication business

End customer price	adjustments1)
Bulgaria	electricity	1.7.2014	0.6%
		1.1.2014	–1.0%/–10.0%2)
	heat	1.1.2013	5.1%
Macedonia	electricity	1.7.2014	3.5%
electricity		1.7.2013	–3.0%
				+/–
Key energy business	indicators	GWh	2013/14	in %
Electricity	generation volumes		400	–6.4
Network distribution	volumes3)		13,034	–0.0
Heat sales volumes	to end customers		185	–9.6
Financial performance		EURm
Revenue			900.8	–10.6
EBITDA			20.2	–82.8
EBIT			–232.8	–

Decline in electricity generation and distribution volumes, stable network distribution volumes

• Less rainfall led to decrease in hydropower production; technical standstill at the cogeneration plant in Plovdiv
• Weather related decline in electricity and heat sales

Drop in EBITDA and EBIT

• Decrease in sales revenues due to
• Previous regulatory tariff decisions
• Recognition of a liability in Bulgaria referring to previous revenues
• Lower OPEX due to absence of additional expenses for eco-electricity
• Higher depreciation and amortisation mainly due to impairments on Bulgarian and Macedonian customer base and goodwill

2) 1% decrease in day tariffs; 10% decrease in night tariffs

3) In Bulgaria and Macedonia energy sales volumes fairly equal present network distribution volumes

¹⁾ Average, household sector, according to the regulators in Bulgaria (SEWRC) and Macedonia (ERC)

Financial performance	EURm	2013/14	+/– in %
Revenue		191.1	–23.0
EBITDA		144.6	–
EBIT		–214.9	–
Financial results		–4.0	–
Profit before income tax		–218.8	–

Year-on-year drop in EBITDA and EBIT

• Reduction in revenue
• Lower volume of processed orders in international project business
• Rise in Austrian thermal waste utilisation
• Expansion of drinking water supply to new communities
• Increase in operating expenses
• Valuation allowance on leasing receivable in connection with the thermal waste utilisation plant no. 1 in Moscow
• Increase in depreciation and amortisation due to impairment losses related to plants in Ljubercy, Moscow

Business development

• Opening of the wastewater purification plant Mia Milia/Haspolat, Cyprus
• Sale of sodium hypochlorite plant

Cash flow

			+/–
	EURm	2013/14	in %
Gross CF		337.4	–37.2
Net CF from operating activities		546.0	–4.2
Net CF from investing activities		–243.3	32.2
Net CF from financing activities		–335.0	–
Net change in cash and cash equivalents		–32.3	–

Year-on-year drop in gross cash flow

Negative Group net result, yet, mainly due to noncash items such as valuation allowances and impairment losses

Lower net cash flow from operating activities

Despite higher trade payables, provisions and other current liabilities

Net cash flow from investing activities

• Investments in network infrastructure and production capacities
• Sale of short-term cash funds

Decline in net cash flow from financing activities

due to scheduled repayment of bonds

Outlook and strategy 2014/15

• EVN at a glance
• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − 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

• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − Contact details

Case Study: RAG – Rohöl-Aufsuchungs AG1)

EBITDA, EBIT and Net profit

1) Source: RAG, Annual report 2013 according to IFRS CER = Compulsory Emergency Reserves

Case Study: RAG – Rohöl-Aufsuchungs AG1)

Production statistics		2013
Gas production	m m³	254.0
Gas sales2)	m m³	660.5
Gas reserves	m m³	3,722
Oil production	t	135,333
Oil reserves	t	862,000
Oil tank storage capacity	t	260,000

Natural gas storage

	Capacity (as of 30.9.2014)	m m³	5,716
--	----------------------------------	------	-------

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; 2,656 m m³)
• Aigelsbrunn (130 m m³)
• Nussdorf/Zagling (117 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

• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − Contact details

Investments 2013/141)

• Environmental Services
• Energy Supply South East Europe
• Network Infrastructure Austria
• Energy Trade and Supply
• Generation

Key investments

• Network infrastructure Austria
• Completion of 143km natural gas pipeline Westschiene
• Commissioning (24 MW) and construction (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 metres in SEE
• Investments in natural gas network in Croatia

1) In intangible assets and property, plant and equipment; Pre consolidation

Power generation capacities of EVN power plants

Natural gas

• Coal
• Biomass, photovoltaics and other renewables
• Windpower
• Hydropower

Key investments

• Total generation capacity 2,240 MW
• Generation capacities from renewable energy increased by 13 MW to 563 MW
• Generation capacities from thermal power increased by 190 MW to 1,677 MW
• Share of generation capacities from renewable energy at 25.1%
• Outlook: Construction of Prottes-Ollersdorf windpark with a capacity of 37 MW

Growth perspective in renewable energy production

Coverage ratio

Increase coverage ratio in the mid-term to 30% on Group level

Balanced integrated business model

Diversified generation portfolio

• Renewable production mainly influenced by commissioning of Duisburg-Walsum power plant in 12/2013
• Focus on wind in Austria

Gas-fired power plants in Theiss and Korneuburg

Reserve capacity for Southern Germany

• Reserve capacity: 785 MW over the next 2 winter half-years; 450 MW for 2017/18
• Supply upon request of Federal Network Agency of Germany ("Bundesnetzagentur")
• Securing the sites

New wind park in Lower Austria

Wind park Prottes-Ollersdorf

• 12 wind turbines
• Total capacity of 37 MW
• Completion is expected in 2014/15 financial year
• After commissioning, EVN's generation capacities from renewables will increase to 250 MW

Hydropower plant project in Bulgaria

Gorna Arda

• 70% EVN stake, 30% NEK (National Electricity Company in Bulgaria)
• River Arda, South Eastern Bulgaria
• Total capacity: 120 MW
• Generation: ~350 GWh p.a.
• Total investments: up to EUR 500m
• Start of operations after 2020 (depending on date of construction decision)

Gas supply in Lower Austria

Map of Lower Austria

Südschiene

• Gänserndorf-Semmering
• Completion: July 2011
• Natural gas pipeline: ~120 km
• Investments: EUR 114m

Westschiene

• Auersthal-Amstetten
• Completion: May 2013/14
• Natural gas pipeline: 143 km
• Investments: EUR 150m

Gas supply in Croatia

Concessions to build and operate a natural gas distribution network on the Dalmatian coast

• Three counties: Zadar, Split and Sibenik
• Concession period: 30 years
• Total pipeline length: 1,450 km
• ~130,000 households
• Start of construction: April 2011 (Zadar)

International environmental services projects

Projects

• Currently 9 international waste water treatment projects under construction
• − Cyprus, Czech Republic, Montenegro, Poland, Romania
• Latest commissionings
• − waste treatment plant Mia Milia/Haspolat in Nicosia, Cyprus

• − waste treatment plant Budva in Montenegro

• EVN at a glance

• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − Contact details

Retrospective adjustments for 2012/13 financial figures

Consolidated statement of financial position & operations	2012/13 (30.09.2013)
EURm	previous	CONS	REG	adjusted
Non-current assets	6,125.1	282.7	-0.7	6,407.2
Current assets	977.0	-90.2	-10.3	876.5
Equity	3,066.5	22.9	-10.2	3,079.2
Liabilities	4,035.7	169.7	-0.8	4,204.4
Balance sheet total	7,102.1	192.6	-11.0	7,283.7
Revenue	2,755.0	-641.1	-8.0	2,105.9
Share of results from equity accounted investees with operational nature	–	95.0	–	95.0
Results from operating activities (EBIT)	218.5	32.1	-8.4	242.2
Financial results	-38.1	-33.2	-0.1	-71.5
Group net profit	114.7	1.0	-6.4	109.3

• Initial application of IFRS 10–12 in Q. 1–3 2013/14 financial statements and non recognition of regulatory assets and liabilities as of 30 September 2014
• − 2012/13 figures had to be adjusted retrospectively
• Impact on EVN Group
• − EVN KG and EAA are presented as at equity consolidated companies whereas STEAG-EVN Walsum is "line by line" consolidated
• − At equity results from companies attributable to EVN Group's core business are presented in the operating results

• − Absence of regulatory assets and liabilities mainly influence Netz NÖ GmbH results (non-cash effective)

• EVN at a glance

• Market environment and strategy
• EVN's success drivers
• Outlook
• Appendix
• − Management Board
• − Financial performance 2013/14
• − Description of segments
• − RAG
• − Investments and projects
• − Retrospective adjustments of 2012/13 financial figures
• − Contact details

Contact details

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 ⁷⁷

Investor's contact point

www.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.