EVN AG — Investor Presentation 2021

Aug 26, 2021

EVN conference call FY 2020/21 results

16 December 2021

Highlights FY 2020/21

Group net result above previous year: EUR 325.3m

• − Solid operating performance
• − Non-cash, non-recurring effects from revaluations to previously impaired equity accounted investees (Verbund Innkraftwerke and Ashta hydropower plant)

Increased attractiveness for ESG investors

• − Final exit from hard coal-fired electricity generation through the divestment of the 49%-stake in the Walsum 10 power plant
• − New CO2 reduction goals agreed with Science Based Targets initiative
• − New expansion targets for wind (+350 MW) and PV (+300 MW) until 2030
• Increase in Capex programme up to EUR 500m p.a.
  • − Thereof ¾ in Lower Austria in networks, renewables and water supply
• Dividend proposal: EUR 0.52 per share (previous year: EUR 0.49)

Key financials FY 2020/21

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

h f low fro Ne t c as m
ing iv i ies t t t op er a a c	7 8 9. 6	–
1) Inv tm ts es en	4 1 5. 0	1 2. 8
de b Ne t t	8 1 3. 8	-2 1. 6
	%
2) i io Eq ty t u ra	5 8. 7	4. 4
	E U R
ing ha Ea rn s p er s re	1. 8 3	6 2. 8

1) In intangible assets and property, plant and equipment

2) Changes reported in percentage points

Improvement in revenue

• − Higher temperature-related network sales volumes
• − Increase in energy sales in South East Europe
• − Start of wastewater project in Kuwait
• − Higher revenue from electricity generation

Increase in EBITDA, EBIT and Group net result

• − Revaluations to previously impaired equity accounted investees
• − Improvements in operating earnings and valuation effects from hedges at EVN KG
• − Contribution from international project business

• Strong balance sheet as basis for increased investment programme in the coming years (annually up to EUR 500m)
• Committed, undrawn credit facilities in the amount of EUR 552m as of 30.09.2021

EBITDA development by segments

Generation

	F Y 2 0 2 0 / 2 1	/– +
lec ic i io lu E tr ty t g en er a n vo m es	h GW	%
l To ta	3, 3 1 4	7. 5
b le Re ne w a en er g y so ur ce s	1, 9 2 1	1. 7
he l e T rm a ne rg y so ur ce s	1, 3 9 3	1 6. 6
	F Y 2 0 2 0 / 2 1	/– +
in ia l p fo F an c er rm an ce	EU Rm	%
Re ve nu e	3 2 9. 3	2. 0 1
E B I T D A	2 6 2. 5	–
E B I T	1 8 2. 2	–

Increase in electricity generation

• − Above-average water flows offset decline in wind flows
• − Thermal generation above low prior year level

Improvement in revenue, EBITDA and EBIT

• − Revaluations of at equity consolidated Verbund Innkraftwerke and Ashta hydro plant (previous year: impairment losses)
• − One-offs related to Walsum 10

Energy

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

	F Y 2 0 2 0 / 2 1	/– +
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 e nu e v	3 1 1. 4	-1 8. 8
E B I T D A	1 8 8. 6	–
E B I T	1 6 6. 6	–

Increase in energy sales volumes

− Colder temperatures

− Normalisation of demand after the coronarelated decline in the previous year

EBITDA and EBIT above previous year

• − Improvement in operating earnings and increase in effects from valuation of hedges at EVN KG
• − One-offs related to Walsum 10

Networks

k d b i i i N t t t e w o r s r u o n	2 0 2 0 2 F Y / 1	/– +
l o m e s v u	h G W	%
l i i E t t e c r c y	8, 8 9 7	4. 5
1) l N t a r a g a s u	1 5, 8 7 1	6. 0
	F Y 2 0 2 0 / 2 1	/– +

E U Rm	%
5 5 3. 8	6. 9
2 3 7. 3	1 8. 7
9 4. 8	3 6. 3

Increase in network sales volumes

• − Previous year influenced by weaker demand due to Covid-19
• − Temperature-related increase in natural gas network sales volumes

Revenue, EBITDA and EBIT above previous year

− Positive volume and price effects (higher network tariffs as of 1 January 2021)

South East Europe

bu in Ke y e ne rg y s e s s	F Y 2 0 2 0 / 2 1	/– +
d in ic t a o rs	h G W	%
le lu E ic i io t ty t c r g e ne ra n vo m e s	3 8 6	-3 3
k d bu lu Ne is i io tw t t o r r n vo m e s	1 4, 4 6 8	5. 3
le ic i le lu E t ty c r s a s v o m e s	1 1, 4 9 0	1. 2
le lu He t a s a s v o m e s	2 0 3	5. 8

	F Y 2 0 2 0 / 2 1	/– +
fo in ia l p F a nc e r rm a nc e	EU Rm	%
Re ve nu e	1, 0 4 8. 1	1 4. 9
E B I T D A	1 3 9. 0	1. 7
E B I T	6 5. 0	-1 6

Increase in energy sales and network sales volumes

• − Colder temperature and recovery of corona-related weaker demand
• − Market liberalisation for commercial customers in Bulgaria as of October 2020 as contrasting factor

EBITDA higher y-o-y, EBIT below previous year

− Increase in energy procurement costs

Environment

	F Y 2 0 2 0 / 2 1	/– +
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 e nu e v	4 0 5. 5	9 4. 8
E B I T D A	6 4. 0	–
E B I T	2 6. 5	–
l l i i F t n a n c a r e s u s	-1 0. 1	-7 1. 6
l b f i R t t e s u e o r e n c o m e a x	6. 1 4	–

Improvement in revenue, EBITDA and EBIT

• − Positive development of international project business, mainly due to start of Kuwait wastewater project
• − National lockdowns, travel restrictions and interruptions in international supply chains have led to delays in international projects
• − Positive one-off effect at evn wasser

Cash flows

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

Gross cash flow

− Takeover of electricity procurement right

CF from operating activities

− Improvement in working capital offset higher corporate income tax payments

CF from investing activities

• − Increase in investments in property, plant and equipment as well as cash funds
• − Compensation payment for Walsum 10 exit

CF from financing activities

• − Dividend payments
• − Scheduled repayment of loans
• − Issuance of green private placement

Outlook for 2021/22

• Group net result for 2021/22 is expected to range from approximately EUR 200m to EUR 240m
  • − Stronger or longer distortions on the energy markets could have a negative impact on expected earnings
• Key messages of EVN's equity story
  • − Increased attractiveness for ESG investors (Science Based Targets; exit from coal)
  • − High share of regulated and stable activities
  • − Stable home market in Lower Austria
  • − Integrated business model
  • − Highly reliable dividend stock
  • − Member of the ATX

Contact details

Stefan Szyszkowitz, CEO

• IR contact partners:

  • − Gerald Reidinger

• − Matthias Neumüller

• − Karin Krammer
• − Doris Lohwasser (maternity leave)
• IR contact details
  • − E-mail: investor.relations@evn.at
  • − Phone: +43 2236 200-12128
  • − 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.