EVN AG — Investor Presentation 2020

Dec 16, 2020

EVN conference call FY 2019/20 results

16 December 2020

Highlights FY 2019/20

• Sound Group net result: EUR 199.8m
• Corona crisis
• −Selective negative influence on EVN's operating results
• −Stabilising effects: integrated business model, diversified customer base
• Strategy 2030: sustainable growth and performance improvement
• − Increase in renewable generation capacity to reduce specific CO2 emissions from own generation by 50% below the 2005 level by 2030
• −Keeping sales quality standards high, also by using digitalisation
• −Innovative solutions for circular economy
• Share of renewable electricity generation rises to 59.5% (previous year: 41.4%)
• Dividend proposal: 0.49 per share

Key financials FY 2019/20

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

f fro h low ing iv i ies Ne t c t t t as m op er a ac	4 1 2. 0	4. 1 -
1) Inv tm ts es en	3 6 7. 9	6. 0 -
de b Ne t t	0 3 1, 7. 7	3. 8

	%
2) Eq i io ty t u ra	5 4. 3	1. 3 -

	E U R
ha ing Ea rn s p er s re	2 1. 1	3 0 4. -

1) In intangible assets and property, plant and equipment

2) Changes reported in percentage points

Different developments in revenue

• Positive trend from South East Europe and international project business
• Decrease in thermal generation and in the Networks Segment

Decline in EBITDA

• Price and volume effects in the Networks Segment
• Recovery of EVN KG
• Impairment loss of EUR 20.7m at Verbund Innkraftwerke

Decline in EBIT

Previous year was influenced by revaluations

Solid balance sheet structure

• Increase of net debt includes effect of ~EUR 73m in connection with initial application of IFRS 16
• Strong balance sheet as a basis for continued increase in future investments (up to EUR 450m p.a. on average over the coming years)

EBITDA development by segments

Conference call FY 2019/20 results

Generation

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

Re ve nu e	2 9 3. 9	1 2. 7 -
E B I T D A	1 1 5. 4	5 5. 7 -
E B I T	4 2. 9	8 0. 4 -

Decline in electricity generation

• Renewable generation lower y-o-y (additional wind capacity, but lower water flows)
• Lower thermal generation (closure of coal-fired power plant in Dürnrohr in August 2019; less calls for network stabilisation)

Revenue, EBITDA and EBIT below previous year

FY 2018/19 was influenced by revaluation effects

Energy

le lu S t a s v o m e s o	F Y 2 0 1 9 / 2 0	/- +
d t e n cu s o m e rs	h G W	%
lec ic i E tr ty	8, 6 3 4	6. 6
l g Na tu ra as	4, 8 3 9	2. 8 -
He t a	2, 1 1 1	9 5.

f l d in ia in ic Ke t a nc a o rs y	E U Rm
Re ve nu e	3 8 3. 6	3 3. 1 -
E B I T D A	8 3. 8	-
E B I T	6 1. 4	-

Different development of energy sales volumes

• Corona-related declines in electricity demand of industry were offset by new industrial customers
• Weather- and competition-related decline in natural gas volumes

Revenue below previous year

Decline in marketing of own generation

Improvement in EBITDA and EBIT

Recovery of EVN KG

Networks

k d i i b i N t t t e w o r s r u o n	F Y 2 0 1 9 / 2 0	/- +
lu v o m e s	h G W	%
l i i E t t e c r c y	8, 4 1 1	1. 2 -
l N t a ru a g a s	1 4, 9 6 7	5. 5 -
f i i l i d i K t e y n a n c a n c a o r s	E U Rm
R e v e nu e	5 1 7. 9	3. 0 -
E B I T D A	1 9 9. 9	4. 0 -
E B I T	6 9. 6	1 6. 1 -

Decline in network distribution volumes

• Decline in electricity consumption caused by Covid-19 (volume effects to be offset in future tariffs according to Austrian regulation)
• Decline in natural gas due to lower use of thermal power plants for network stabilisation and mild winter

Revenue below previous year

Negative volume and price effects

EBITDA and EBIT declined y-o-y

South East Europe

bu in Ke y en er g y s es s	F Y 2 0 1 9 / 2 0	/- +	
d in ica to rs	G h W	%
lec ic i ion lu E tr ty t g en er a vo m es	3 9 9	6. 2 -
he f r b le t re o en ew a en er g y	1 2 8	2. 9
he f he l p lan t t ts re o rm a ow er p	2 0 7	9. 9 -
k d bu lu is i ion Ne tw tr t or vo m es	1 3, 7 4 2	3. 4 -
lec les lum E ic i tr ty sa vo es	1 1, 3 5 1	5. 3 -	
les lu He t s a a vo m es	1 9 2	8. 3 -

f l d Ke in ia in ica to y an c rs	E U Rm
Re ve nu e	9 2. 2 1	0. 2
E B I T D A	1 3 6. 7	4. 3
E B I T	6 6. 1	3 1. 1 -

Network and energy sales volumes declined y-o-y

Unusually mild temperatures and corona crisis

Improvement in EBITDA

Lower procurement costs for grid losses

EBIT below previous year

FY 2018/19 was influenced by revaluation effects

Environment

	2 0 9 2 0 F Y 1 /	/- +	
f in ia l in d ic Ke t y a nc a o rs	h G W	%
Re ve nu e	2 0 8. 1	9 8. 0
E B I T D A	1 7. 3	3 5. 4 -
E B I T	0. 6	9 6. 3 -
l re l ina ia F ts nc su	5. 9 -	4 9. 6
l be fo Re inc t ta su re om e x	5. 3 -	-	

Higher revenue y-o-y

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

EBITDA and EBIT below prior year

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

International project business

• Acquisition of three thermal sewage sludge utilization projects in Germany
• Start of work on Umm Al Hayman wastewater treatment project in Kuwait

Cash flows

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

CF from operating activities

Decrease due to lower result

CF from investing activities

• Equity contribution for Kuwait project and increased investments in cash funds
• Divestments of securities (R 138 fund)

CF from financing activities

• Dividend payment for FY 2018/19 and scheduled repayment of financial liabilities
• EUR 100m green promissory note loan issued in April 2020

Outlook for 2020/21

• Group net result for 2020/21 is expected to range from approximately EUR 200m to EUR 230m
• Assuming average conditions in the energy business environment
• − Further course of corona crisis and the resulting macroeconomic effects could have a negative influence
• Investment strategy
• −Approximately EUR 450m p.a. over the next financial years
• − Thereof approximately three fourths will be directed to networks, renewable generation, natural heat and drinking water in Lower Austria
• −Delays resulting from the lockdown will be recovered as soon as possible

Contact details

Stefan Szyszkowitz, CEO

• IR contact partners:
• Gerald Reidinger
• Matthias Neumüller
• Doris Lohwasser
• Karin Krammer
• IR contact details
• E-mail: investor.relations@evn.at
• Phone: +43 2236 200-12128
• Phone: +43 2236 200-12473

• Phone: +43 2236 200-12867

• Information on the internet

• www.evn.at
• www.investor.evn.at
• www.responsibility.evn.at
• Headquarters of EVN AG
• EVN Platz 2344 Maria Enzersdorf

Disclaimer

Certain statements made in this presentation may constitute "Forward-Looking Statements" within the meaning of the U.S. federal securities law. Forwardlooking information is subject to various known and unknown risks and uncertainties. These include statements concerning our expectations and other statements that are not historical facts.

The Company believes any such statements are based on reasonable assumptions and reflect the judgement of EVN's management based on factors currently known by it.

No assurance can be given that these forward-looking statements will prove accurate and correct, or that anticipated, projected future results will be achieved.

For additional information regarding risks, investors are referred to EVN's latest Annual report.