EVN AG — Investor Presentation 2017

Feb 6, 2017

EVN – energy company and environmental services provider

February 2017

• !2015/16 Group EBITDA: 77% 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; 2015/16 dividend yield: 4.0%

• Supports debt repayment

• !EVN at a glance

• !Regulation, market environment and strategy
• !EVN's success drivers
• !Investments
• !Business development FY 2015/16
• ! Appendix
• Executive 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 30.09.2016)

Energy business – 6 countries

1) EVN share: 50%

2) EVN share: 13%

3) EVN share: 49%

• !Drinking water supplies in Lower Austria
• ! Thermal waste utilisation plant in Lower Austria (annual capacity 500,000 t)
• ! International project business
• Under construction (as of 30.09.2016)
  • 6 wastewater disposal projects (Croatia, Czech Republic, Macedonia, Montenegro)
• Under operation
  • 4 drinking water supply plants (Germany, Montenegro, Russia)
  • 21 wastewater disposal plants (Croatia, Cyprus, Germany, Montenegro, Slovenia)
  • 1 thermal waste utilisation plant (Moscow/Russia, annual capacity 360,000 t)

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

Key figures 2015/16

	2 0 1 5 / 1 6	2 0 1 4 / 1 5	/– +
	EUR m	EUR m	%
f i d los Pr t a ta te t o n s s m en
Re ve nu e	2, 0 6. 6 4	2, 3 8 1 5.	2 -4
E B I T D A	6 0 4. 4	5 8 3. 2	3. 6
E B I T	2 6 0. 4	2 6 8. 2	-2 9
l Gr t r t ou p ne es u	1 5 6. 4	1 4 8. 1	5. 6
lan he Ba t ce s e
lan he l Ba t to ta ce s e	6, 6. 5 5 5	6, 0 2 5 1.	0. 9
Eq i io ty t u ra	4 2. 3 %	3 9. 8 %	-
de b Ne t t	1, 1 2 1. 5	1, 2 3 0. 9	-8 9
Ge ing ar	4 0. 5 %	4 7. 5 %	-
h f low d inv Ca tm ts s a n es en
h f low fro Ne ing t c t as m op era
iv i ies t t ac	4 6 3. 0	4 7 8. 3	-3 2
1) Inv tm ts es en	3 1 5. 4	3 2 2. 7	-2 2
ha S re
ing ha Ea rn s p er s re	0. 8 8	0. 8 3	5. 7
de d iv i D n	0. 2 4	0. 2 4
io Pa t r t ou a y	% 4 7. 7	% 5 0. 4	-
de d y l d D iv i ie n	4. 0 %	4. 3 %	-

1) In intangible assets and property, plant and equipment

Contribution by business segments –Diversified portfolio

2) BY 2015/16, After consolidation

High share of regulated and stable business

Share of EBITDA in 2015/16

Key financials 2015/16

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

!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

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

!Impairment testing

• Energy generation plants
• EUR 77.9m negative effect on EBIT

!Increase in Group net result

EBITDA development by segmentsFY 2015/16

EVN within the next 5 years

• ! 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

EVN at a glance¹⁶

Okt 15 Nov 15 Dez 15 Jän 16 Feb 16 Mär 16 Apr 16 Mai 16 Jun 16 Jul 16 Aug 16 Sep 16 Okt 16 Nov 16 Dez 16

ATX ATX Prime Dow Jones Euro Stoxx Utilities

Share capital EUR 330,000,000Denomination 179,878,402 shares AT000741053 TickersEVNV.VI (Reuters); EVN AV (Bloomberg); EVN (Dow Jones); EVNVY (ADR) 3.5%

EVN

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

The EVN share

Basic information

ISIN

85

• !EVN at a glance
• !Regulation, market environment and strategy
• !EVN's success drivers
• !Investments
• !Business development FY 2015/16
• ! Appendix
• Executive 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

Regulation, market environment and strategy²³

Source: EVN; January 2017

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 capacity 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 feed in tariffs for wind power
• Mid term target: from 268 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
• !Business development FY 2015/16
• ! Appendix
• Executive 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 6 P 1 t o p u a o n	6 3, 9 1, 5 4 1
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 5 t p e r c a p a :	) 1 E U R 3 1, 4 0 0 ( i A E U R 3 9, 4 0 0 t u s r a : ;

Sources: Statistics Austria; Eurostat; World Bank

Germany: EUR 37,100)

# 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 ity ion in E tr t co ns um p
in T h W	ia Au str	Ge rm an y
20 ( ) 14 Jan -De c	69 .29	52 9.3 7
( ) 20 15 Jan -De c	69 .51	52 0.6 1
ha ( ) C % ng e	0.3 %	-1. 7%
( ) 20 15 Jan -Au g	46 .10	34 2.4 0
20 16 ( ) Jan -Au g	48 .05	35 8.4 5
C ha ( % ) ng e	4.2 %	% 4.7

Source: Austria: European Network of Transmission System Operators for Electricity (www.entsoe.eu)

Outlook on electricity consumption in Lower Austria2)

1) Source: European Network of Transmission System Operators for Electricity (www.entsoe.eu)

312) Source: EVN EVN's success drivers

• ! 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 268 MW
  • 16 windparks

# 2: Wide-spread heat and biomass portfolio

Map of Lower Austria

!#1 in biomass heating in Austria

• !5.8% of EBITDA1)
• ! Biomass portfolio
• More than 60 biomass plants in Lower Austria
• 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)
• !2.4% of Group EBITDA1)
• ! Operation of 36 local drinking water supply networks
• ! ~ 563,500 customers
• thereof 103,750 directly supplied
• ! Construction of natural filter plants
• Reduction of the hardness level of water by natural means

# 3: High share of regulated and stable business

Share of EBITDA in 2015/16

# 3: Geographical split of revenues and EBITDA

Revenue split by region

48% 50% 3% 3% 49% 47% 2014/15 2015/16South Eastern EuropeCentral and EasternEuropeAustria 76% 76% 3% 2%21% 22%2014/15 2015/16South Eastern EuropeCentral and EasternEuropeAustria

EBITDA split by region

39EVN's success drivers

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

l d h l E i i i B i t t t t e c r c y a n e a c u s o m e r s n u g a r a	1. 7 m
l d i i i i E M t t t e c r c y c u s o m e r s n a c e o n a	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
• −⁶ 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

Contribution to net profit (EURm)

Significant contribution to EVN's net profit

• ! RAG and Verbund are the main contributors
• !Income from RAG below prior-year's level
• ! Contribution from Verbund AG increased due to higher dividend of 0.35 EUR/share for the 2015 financial year (previous year: EUR 0.29/share)

# 7: Solid capital structure

• !Solid equity ratio
• !Reduced net debt; gearing ratio improved
• ! Credit ratings
• S&P: BBB+, stable
• −Moody's: A3, stable
• !EVN aims at preserving a competitive investment grade credit rating

# 7: Debt maturity profile

! Well-balanced debt maturity profile

• ! Liquidity reserves of EVN group
• Syndicated loan of EUR 400m
• Committed bilateral credit lines of EUR 122.0m

# 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 19% 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% (30.09.2016: 42.3%)
• Net debt coverage (FFO) ≥ 30% (30.09.2016: 50.7%)
• Interest cover (FFO) ≥ 5x (30.09.2016: 8.5x)
• !Dividend: EVN follows an attractive and sustainable dividend policy

Dividend per share (EUR)

• !EVN at a glance
• !Regulation, market environment and strategy
• !EVN's success drivers
• !Investments
• !Business development FY 2015/16
• ! Appendix
• Executive Board
• Description of segments
• CSR
• RAG
• Contact details

Investments 2015/161)

Key investments

• !Network infrastructure Austria
• ! Expansion of windpower capacity 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
• !Business development FY 2015/16
• ! Appendix
• Executive Board
• Description of segments
• CSR
• RAG
• Contact details

!Increase in electricity generation by 20.1%

• Lower renewable generation due to lower wind and water flows
• Higher demand for network stabilisation in Austria and Germany
• ! Operating improvements due to higher energy business results
• ! New contract for four turn-key wastewater projects in Croatia and Macedonia
• !Increase in EBITDA and Group net result
• ! Decrease of net debt and gearing due to strong operating cash flow
• ! Dividend proposal to 88th Annual General Meeting: EUR 0.42 per share for the 2015/16 financial year

Key financials 2015/16

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

!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

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

!Impairment testing

• Energy generation plants
• EUR 77.9m negative effect on EBIT

!Increase in Group net result

Solid balance sheet structure, reduced net debt

• !Improvement of equity ratio to 42.3% (30 September 2015: 39.8%)
• !Reduction of net debt to EUR 1,121.5m (30 September 2015: EUR 1,230.9m)
• !Gearing decreased to 40.5 % (30 September 2015: 47.5%)

Generation

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

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

! Increase in energy production

• Greater use of thermal power plants to support network stability
• Decline in renewable generation due to less favourable wind conditions

!Improvement in EBITDA

Reduction in operating expenses

!Increase in EBIT

Negative impact by impairment losses, which reflected less favourable estimates for the long-term development of electricity prices

Energy Trade and Supply

l l S t a e s v o u m e s o	2 0 1 5 / 1 6	/– +
d t e n c s o m e r s u	h G W	%
l E i i t t e c r c y	6, 4 1 0	-5 8
l N t a u r a g a s	0 9 8 5,	-2 7
H t e a	1, 8 9 8	3. 9

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

!Energy sales

• Decline in electricity and natural gas sales volumes
• Increase in heat sales volumes

!Decline in EBITDA and EBIT

Negative impact from creation of a provision for onerous contracts related to the marketing of EVN's own electricity production

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

EBIT 110.3 15.4

! Network distribution volumes

• Substantial increase in natural gas network distribution volumes
• Electricity network distribution volumes at prior year level

! Improvement in EBITDA and EBIT

Positive price and volume effects

Energy Supply South East Europe

1) i p r c e s	+/– in %	d j A tm t us en
le ic i t ty e c r	% -0 4	0 0 8. 2 0 1. 15
	% 0. 8 3 +	0 1. 0 7. 2 0 1 6
he t a	2) % -1 9
le ic i t ty e c r	-0 3 %	0 1. 0 7. 2 0 15
	-0 3 %	0 1. 0 7. 2 0 1 6
i s s s n e	2 0 6 1 5 / 1	/– +
	h G W	%
lu io t ra n vo m e s	4 5 0	-9 1
lu io t n vo m e s	1 3, 4 0 3	-1 2
lu o m e s	8 8 2 1 1,	6 -4
m e s	8 1 4	2. 8 -1
	2 0 1 5 / 1 6	/– +
r m a n c e	EU Rm	%
	9 9. 4 7	-8 5
	1 2 9. 5	7. 2
	3 5. 4	-3 8. 8

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

2)Step-by-step reduction as compared to level on 1 July 2015

!Decline in revenue

• Decrease of electricity production in Macedonia (lower water flows)
• Lower energy demand due to unusually mild temperatures and liberalisation steps

! Improvement in EBITDA, decline in EBIT

• Lower energy procurement costs (in correspondence with lower sales volumes)
• Operating improvements (reduction of network losses, improvement in collection of receivables, cost savings)
• Impairment effect related to Bulgarian heating businessBusiness development FY 2015/16 ⁶⁰

Environmental Services

2 0 1 5 / 1 6 E U Rm	/– + %
1 7 6. 8	2. 4
5	-3
3.	5
1
2	6
3	-4
7.
-2	6
5	3
	7.
2	8.
8	0
4.	1

!Increase in revenue

Higher revenue from thermal waste incineration in Lower Austria and from international project business

! Decrease in EBITDA and EBIT; increase in financial results

Absence of previous year's one-off effects from sale of sodium hypochlorite plant in Moscow

Cash flows

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

! Increase of operating cash flow

• Strong operating performance

• ! Changes in the cash flow from investing as well as financing activities influenced by last year's sale of sodium hypochlorite plant

• ! Group net result for 2016/17 is expected to remain largely stable

• ! Arbitral decision in favor of project company for the power plant Walsum ¹⁰
• An arbitral tribunal has awarded the project company claims in the amount of EUR 200 million
• Such arbitral decision will to a large extent result in a reduction of construction costs for the power plant
• Currently no material effects expected on EVN's Group net result in the 2016/17 financial year
• ! EVN's strategy remains unchanged
• EUR 1bn investment programme for networks, renewable generation and drinking water supplies to be continued
• Commitment to integrated business model

Appendix

• !EVN at a glance
• !Regulation, market environment and strategy
• !EVN's success drivers
• !Investments
• !Business development FY 2015/16
• ! Appendix
• Executive Board
• Description of segments
• CSR
• RAG
• Contact details

Executive 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; appointed 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 (CFO)

• 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
• !Business development FY 2015/16
• ! Appendix
• Executive 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
• !Business development FY 2015/16
• ! Appendix
• Executive 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 committee, 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, stakeholder surveys, project mediation, etc.

EVN – A responsible energy and environmental services provider

! Listings in sustainability indices (VÖNIX, Ethibel Excellence Register, FTSE All-World Green Revenues Index, FTSE Developed Green Revenues Index, FTSE Europe Green Revenues Index)

! Participation in Carbon Disclosure Project (CDP 2016 Climate Score: C)

! 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
• !Business development FY 2015/16
• ! Appendix
• Executive 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 c o n s a s c s u		2 0 1 5
d i G 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
i l d i O t p r o u c o n	t	1 1 6, 4 0 0
l l i O s a e s	t	1 1 7, 6 0 0
l k i i O 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
• !Business development FY 2015/16
• ! Appendix
• Executive Board
• Description of segments
• CSR
• RAG
• Contact details

Contact

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

Further information on the internet

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 Q1 2016/17, 28 February 2017

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.