EVN AG — Investor Presentation 2022

Jun 1, 2022

EVN – the company for energy, water and environmental services

June 2022

EVN at a glance

• Business development (FY 2020/21)
• Back-up information

Integrated business model as basis for our value chain

1) As of 30 September 2021

2) Number of customers in brackets

Foreign markets in the energy business

• − Bulgaria: Electricity distribution networks, electricity supply, generation and heat
• − North Macedonia: Electricity distribution networks, electricity supply and generation
• − Selected activities in Germany, Croatia and Albania

High share of regulated and stable business

Company presentation, June 2022

Strategy 2030

EVN Climate Initiative

• Expansion targets for renewables until 2030
  • − Wind (+350 MW) and PV (+300 MW)
• CO2 reduction goals agreed with Science Based Targets initiative
  • − Well-below 2°C goal of Paris Agreement

Climate neutrality in selected subsidiaries (PAS 2060)

EVN's renewable portfolio with 752 MW installed capacity1)

• Successful reduction of CO 2 footprint in electricity generation
  • − Complete exit from coal-fired electricity generation as of 30 September 2021
  • − Substantial re-dimensioning of natural gas (only used as network stabilization and for cogeneration of heat and electricity)

Company presentation, June 2022

Sustaining high share of stable income from regulated network business

• Transformation to CO 2-neutral energy system and e-mobility as investment drivers
• Investments in electricity networks
  • − New construction or expansion of transformer stations and substations
  • − Expansion of 110 kV power lines
  • − Smart meter

Ø future RAB growth ~5% p.a.

k Ne tw or	le ic i E tr ty c	l g Na tu ra as	Co ts m m en
la ho i Re 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 io d S ta t o t to r re g u ry p er	0 1. 0 1. 2 0 1 9	0 1. 0 1. 2 0 1 8
la d j Ne t r to tm t x eg u ry a us en	0 1. 0 1. 2 0 2 4	0 1. 0 1. 2 0 2 3	f fa d j d du iv i A W A C C tm t o t ty to us en an p ro c c rs
f he la d Du ion io 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 d j An te nu a a us	l ly d d j An te nu a a us	l d de d he he An inv R A B in tm ts to t t nu a es en ar e a fo l low ing y ea r
( l ) W A C C ina ta p re- x, no m	( f ) Ne R A B 2 0 1 9 w as o : − 5. 2 0 % f Ex is ing R A B o D S O t − h a i t ve ra g e w f f ic ien % 4. 8 8 e cy :	( f ) Ne R A B 2 0 1 8 w as o : − 5. 2 0 % f h Ex is ing R A B o D S O i t t w − f f ic ien av er ag e e cy : % 4. 8 8	fo f r len h o la io d Se t t to r g eg u ry p er he fo f h a bo H ig W A C C is ing R A B o D S O i t t r r e x w ve Ö f f ic ien ( h a ) E V N / Ne N tz av er ag e e cy su c s
l p du fa Ge iv i t ty to ne ra ro c c r	0. 9 % 5	0. 8 3 %	fro du h he Ga ins ion in i t r t t t m co s e c s r em a w du ing he la io d t to co m p an y r re g u ry p er
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	k o de f c ice in is Ne tw to ts or p er a r p r x c on s o on su m er de d w de ice in inc in p r x a n ag e rea se x

Strong market position in Austria

Source churn rates: E-Control, market statistics –consumer attitude/churn rates electricity and gas according to network areas 10

Company presentation, June 2022

Continuous efforts to achieve further operating improvements in SEE

Ongoing reduction of grid losses

• Number of customers

  • − Bulgaria: 1.8m

• − North Macedonia: 0.9m

• Commitment to supply security
• Investment strategy for SEE
  • − Expansion and upgrading of network infrastructure to continuously reduce network losses
  • − Replacement of metres to further improve collection rates

Drinking water business in Lower Austria – stable earnings contribution and future growth area

EVN's drinking water supply area in Lower Austria

• Largest regional drinking water supplier
  • − 0.6m drinking water customers
  • − Supra-regional pipeline networks and local water supply networks
  • − Operation of 5 natural filter plants to reduce the hardness of water by natural means
• Expansion of cross-regional pipeline networks (until 2030)
  • − ~EUR 165m total investments
  • − ~300 km additional pipelines

International environmental projects further diversify EVN's business mix

Thermal sludge treatment plant in Halle-Lochau (Germany)

• International project business
  • − WTE Wassertechnik GmbH (Germany)
  • − Planning and construction of plants for drinking water supplies, wastewater disposal and thermal waste incineration
  • − Operation and financing (upon request)
  • − 12 projects under planning and construction (Germany, Poland, Lithuania, Romania, Bahrain, Kuwait)1)
• Plants for thermal utilisation of sewage sludge as area with high future potential
  • − Commissioning of plant in Germany (2022)
  • − Contracts for projects in major German cities (Hanover, Straubing) Company presentation, June 2022

Wastewater treatment project Umm Al Hayman (Kuwait)

• Wastewater treatment plant (PPP)

  • − Capacity: 500,000 m3/d (~1.7m people)
  • − EPC contractor: WTE (100%)

• − Contract value: ~EUR 600m

• − Construction period: 2.5 years
• − Financing: equity1) (20%), bank debt (80%)
• Sewage infrastructure (DBO)
  • − Pipes (450 km), pumping stations etc.
  • − EPC contractor: WTE (67.6%) and two local partners
  • − Contract value: ~EUR 950m
  • − Construction period: up to 4 years
  • − Financing through State of Kuwait (100%)

¹⁾ Shareholders: State-owned Kuwaiti institutions (80%), WTE (20%); WTE's equity contribution (~EUR 30m) is covered by a state guarantee from the Federal Republic of Germany

Significant contribution to EVN's net profit from strategic investments

1) Contribution to EVN's result before income tax in FY 2020/21

Verbund AG

• − #1 electricity producer in Austria and #2 hydropower producer in Europe with 8.2 GW installed capacity
• Burgenland Holding AG
  • − Holds a 49% stake in Energie Burgenland (#1 green energy producer in Austria, distribution networks, sale of energy)
• RAG Austria AG
  • − ~6.3bn m3 storage capacity for natural gas

• High share of earnings from regulated and stable business
• Continuous strengthening and expansion of domestic regulated and stable activities
  • − Networks, wind generation, heating, drinking water supply
• Active role in energy transition
• Sustainable company with ESG-focused strategy
  • − CO2 reduction goals agreed with Science Based Targets initiative; renewable expansion; exit from coal
• Robustness of integrated business model
• Highly reliable dividend stock

Outlook for 2021/22

Group net result for 2021/22 is expected to range from approximately EUR 200m to EUR 240m

• − Stronger or sustained distortions on the energy markets could have a negative influenceon expected results
• Investment strategy
  • − Annual investments up to EUR 500m over the coming years
  • − Thereof approximately three-fourths will be directed to renewable generation, networks, district heating and drinking water in Lower Austria
  • − Wind and photovoltaic projects in Lower Austria, Bulgaria and North Macedonia

EVN share

Shareholder structure

Dividend history

	2 0 2 0 2 / 1	2 0 9 2 0 1 /
d d ha ( ) D iv i E U R e n p e r s re	0. 5 2	0. 4 9
io ( % ) Pa t t y ou ra	2 8. 5	4 3. 8
d d l d ( ) D iv i ie % e n y	2. 3	3. 4
	3 1. 0 3. 2 0 2 2
ha ( ) S ic E U R re p r e	2 3. 3 0
ke i l is io ( ) M E U Rm t t t a r c a p a a n	4, 1 9 1

Member of the ATX

According to federal and provincial laws, the Province of Lower Austria is required to hold a stake of at least 51% in EVN

EVN at a glance

• Business development (FY 2020/21)
• Back-up information

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 De ia io isa io t t t p re c n a n m or n	-3 3 7. 7	-1 3. 8
f fe fro im irm E ts t te ts c m p a en s	2. -1 1 4	–
E B I T	3 8 6. 4	4 1. 5
l re l F ina ia ts nc su	-2 0. 0	-2 6. 4
l Gr t r t ou p ne es u	3 2 3 5.	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

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

Key energy business indicators (FY 2020/21)

	2 0 2 0 2 / 1	/– +
	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	3, 9 9 7	5. 6
b l R e n e a e e n e r g s o r c e s w y u	2, 2 8 3	1. 5
h l T e r m a e n e r g y s o u r c e s	1, 7 1 5	1 1. 7
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
l E i i t t e c r c y	2 3, 2 5 7	5. 0
l N t a u r a g a s	1 6, 1 8 4	6. 3
l l d E t n e r g y s a e s v o u m e s o e n
t c u s o m e r s
l i i E t t e c r c y	2 0, 2 0 7	2. 0
f h i d A G t t e r e o s r a a n e r m a n u y	8, 7 1 7	3. 0
f h h S E E t t t e r e o o a s e r n r o p e u u	1 1, 4 9 0	1. 2
l N t a r a g a s u	5, 4 1 2	9. 2
H t e a	2, 5 4 5	1 0. 5

Increase in electricity generation

• − Above-average water flows offset decline in wind flows
• − Thermal generation above low prior year level
• Increase in network distribution volumes
  • − Previous year influenced by weaker demand due to Covid-19
  • − Temperature-related increase in natural gas network sales volumes
• Higher electricity sales volumes
  • − Colder temperature and recovery of coronarelated weaker demand

EBITDA development by segments

(FY 2020/21)

Se t g m en	2 0 2 0 / 2 1	/– +	Co t m m en
	EU Rm	%
Ge ion t ne ra	2 6 2. 5	–	lec d h he lec lua ly Inc in ic i ion ig ic i ice ion iou tr ty t tr ty t to rea se e g en era a n r e p r s; rev a s p rev s d d f fs la d lsu im ire i inv 0 W 1 ty te te te to p a eq ac co un es es on e- o re a m u ;
En er g y	1 8 8. 6	–	la d les f fs la d lsu Te inc in W 1 0; tu te te to mp era re- re rea se en er g y sa ; on e- o re a m d lua f he dg im in ing ing ion E V N K G t t t t p rov em en op era e ar n s a n va o es a
ks Ne tw or	2 3 7. 3	1 8. 7	i ive ice d lum f fe Po t ts s p r a n vo e e c
h So Ea Eu t t u s ro p e	1 3 9. 0	1. 7	la d k s les d les lum inc in is ing Te tu te tw mp era re- re rea se ne or a a n en er g sa vo es r e ne rg y ; y t c ts p ro cu rem en os
iro En t v nm en	6 4. 0	–	du lan Inc j in Ku i to tew te tre tm t p t p t t rea se e w as a r a en ro ec w a

Agenda

EVN at a glance

• Business development (FY 2020/21)
• Back-up information

Key financials HY. 1 2021/22

(HY. 1 2021/22)

HY. 1 2021/22 EURm 2,126.7	+/- 0/0 65.5
420.2	-21.6
-158.3	5.9
-50.9	55.0
211.0	-17.1
-31.3	-49.0
127.4	-27.6

Net cash flow from
operating activities	-84.1
Investments"	191.5	22.9
Net debt	1,134.4	22.0

Increase in revenue

• − High electricity prices as a driver
• − Price and volume effects in networks business
• − Higher demand for gas-fired generation to support network stability

Decline in EBITDA, EBIT and Group net result

• − High procurement costs and costs for network losses in South East Europe
• − Lower earnings contribution from EVN KG
• − Impairment losses in Environment Segment
• − Takeover of electricity procurement right led to positive one-off effect in the previous year

1) In intangible assets and property, plant and equipment

2) Changes reported in percentage points

Solid balance sheet structure

(HY. 1 2021/22)

• Strong balance sheet as a basis for increased investment programme in the coming years (annually up to EUR 500m)
• Committed, undrawn credit facilities in the amount of EUR 602m as of 31.03.2022
• Ratings confirmed: A1/stable (Moody's), A+/stable (Scope)

Structure of investments1)

(FY 2020/21)

Investment strategy

• − Annual investments over the coming years to an average of up to EUR 500m depending on projects
• − Thereof approximately ¾ directed to networks, renewable generation and drinking water in Lower Austria

1) In intangible assets and property, plant and equipment

• Stable dividend policy
  • − Hold the absolute amount of the dividend constant at a level of at least EUR 0.52 per share
  • − Commitment to appropriate participation in future earnings growth
• Financial policy
  • − EVN's goal is to maintain solid A category ratings in the future
  • − In order to achieve such ratings, EVN is strictly monitoring the adjusted target ratios of both rating agencies
• Credit ratings
  • − Moody's: A1, stable outlook (April 2022)
  • − Scope Ratings: A+, stable outlook (May 2022)

EUR 602m undrawn, committed credit lines(as of 31 March 2022)

Company presentation, June 2022

Challenging market environment

Source: EVN, May 2022

Company presentation, June 2022

RAG Austria AG

Natural gas storage facility Haidach (Province of Salzburg)

Key financials (FY 2020)

R e v e n u e	E U R m	2 7 9. 5
f f i P t t t r o a e r a x	E U R m	4 5. 3

1) Indirectly through RAG-Beteiligungs-Aktiengesellschaft (100%)

• Shareholder structure

  • − EVN AG (50.03%)1)

• − Uniper Exploration & Production GmbH (29.97%)

• − Energie Steiermark Kunden GmbH (10.00%)
• − Salzburg AG (10.00%)
• 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

Company presentation, June 2022

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
• Financial calendar
  • − Next event: Results Q. 1-3 2021/22, 25 August 2022
  • − www.investor.evn.at/financial-calender

Company presentation, June 2022

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.