Evn Ag · VIE:EVN
Evn — Non-Deal Roadshow (June 2012)
66 slides from Evn's roadshow presentation, Jun 14, 2012
Slide 1: EVN Company presentation
EVN Company presentation June 2012
Slide 2: Agenda
2 Agenda EVN at a glance Investments and projects Financial performance 2010/11 Financial performance HY. 1 2011/12
Slide 3: EVN at a glance
EVN at a glance 3 EVN at a glance Profile Key metrics (2010/11) - Leading integrated Energy and Environmental Generation Services company serving customers in Lower Austria, SEE and CEE - Electricity generation capacity: 1,873 MW (thermal: 1,434 MW; renewable: 439 MW) - Key business areas: electrici
Slide 4: EVN at a glance – active in 21 countries
EVN at a glance 4 EVN at a glance – active in 21 countries Key geographic areas - Lower Austria and Germany - South Eastern Europe (SEE) - Central and Eastern Europe (CEE) Activities - Lower Austria: Energy business: full integration Environmental services business: drinking water supply, wastewater
Slide 5: Business segments
EVN at a glance 5 Business segments Generation Energy Supply South East Europe - Production (2010/11): 3,000 GWh - Electricity distribution and supply business in BG, MK - Efficient and flexible thermal fleet (coal, gas, oil) - ~13 TWh sales volume - Sizeable renewable energy portfolio - Heat genera
Slide 6: EVN's strategy – ongoing consolidation
EVN at a glance 6 EVN’s strategy – ongoing consolidation Expand generation capacity - Target a coverage ratio from roughly 20% to 40%–60% - Increase the share of renewable power generation from 30% to 50% - High quality projects in SEE Maintain market leadership in Austrian supply business Enhance e
Slide 7: Implementation of strategic goals in 2010/11
EVN at a glance 7 Implementation of strategic goals in 2010/11 Expansion of renewable energy in Lower Austria and abroad - Acquisition of 13% of VERBUND Innkraftwerke GmbH in Bavaria - New wind parks in Lower Austria - Capacity increase of existing small hydro power plants in Lower Austria - Complet
Slide 8: Strengthening of liquidity position
EVN at a glance 8 Strengthening of liquidity position Capital increase of EVN AG by 10% to EUR 330m in October/November 2010 - Net proceeds of EUR 175.5m from capital increase - Strengthening EVN’s balance sheet and supporting EVN’s credit rating - Financing projects for expansion of renewable energ
Slide 9: Increase coverage ratio and diversify generation portfolio
EVN at a glance 9 Increase coverage ratio and diversify generation portfolio Coverage ratio Increase coverage ratio long-term to 70% 40%–60% on Group level Market entrance 60% Bulgaria 50% - Hold coverage ratio in CWE Market entrance 40% 69% Macedonia - Increase coverage ratio in SEE 30% 56% 40%- 20
Slide 10: EVN – an attractive investment opportunity
EVN at a glance 10 EVN – an attractive investment opportunity 1 Growing portfolio of high quality generation assets 2 More than 60% of revenues and more than 80% of EBITDA from stable core Austrian business 3 Upside potential in SEE region 4 Diversified business model through integration of environm
Slide 11: Ongoing projects to double generation output by 2020
EVN at a glance 11 1 Ongoing projects to double generation output by 2020 (Pro-rata installed capacity, MW) 2,845 119 192 53 173 25 410 84 128 1,873 1,820 2,746 1,583 1,608 1,692 1,410 1,000 2) Status quo Walsum Wind parks Ashta Gorna Arda Devoll Others 1) 2010/11 (financed) (partly financed) (finan
Slide 12: Majority of revenues and EBITDA generated in domestic and regulated businesses
EVN at a glance 12 2 Majority of revenues and EBITDA generated in domestic and regulated businesses Revenue breakdown by segments 2010/111) Geographic revenue breakdown2) Enviro nmental Generatio n 3% Netwo rk 3,000 2,727.0 2,752.1 2,729.2 Services Infrastructure 2,500 12% A ustria 38% 38% 40% 16% 2
Slide 13: Regulated business in Austria
EVN at a glance 13 2 Regulated business in Austria Network Electricity Gas Comments Reset date 1 Jan 2014 1 Jan 2013 Next reset of WACC and (Regulatory period length) (4 years) (5 years) X factor RAB (EUR m) Not public Not public Capex retrospectively monitored each year WACC (pre-tax, nominal) 7.0%
Slide 14: Regulated business in SEE
EVN at a glance 14 3 Regulated business in SEE Electricity Bulgaria Macedonia SEWRC ERC Regulatory authority (State Energy and Water (Energy Regulatory Regulatory Commission) Commission) Reset date 1 Jul 2013 1 Jan 2015 (Regulatory period length) (5 years) (3 years) RAB (EUR m) Not public Not public
Slide 15: Regulated business in South Eastern Europe
EVN at a glance 15 2 Regulated business in South Eastern Europe EVN buys energy from public provider at Bulgaria regulated prices and sells to end-customers at Market entry in 2005 regulated prices Bulgaria: Plovdiv - District heating plant in Plovdiv - Sales volumes (2010/11): 8,163 GWh Macedonia:
Slide 16: Upside potential from SEE market development
EVN at a glance 16 3 Upside potential from SEE market development Illustrative electricity sales Electricity prices for Improvement of volumes per customer1) households (EUR cent/kWh) grid efficiency 25 al 120% t e nti o id ep 100% 20 100% s Up 80% 80% 15 60% 54% 24% 10 22% 21% 17% 17% 18% 40% 15% 1
Slide 17: Competitive business model through integration of environmental services business
EVN at a glance 17 4 Competitive business model through integration of environmental services business Successful participation in 93 projects in 18 countries since 1983 Strong demand for infrastructure projects set to continue Contract volume of EUR 1.3bn with attractive return potential from inter
Slide 18: Internal hedge from investments
EVN at a glance 18 5 Internal hedge from investments 12.63% 50.03% 73.63% 49.0% 49.0% - #1 electricity producer in Austria - #2 oil and gas producer in AT - #1 green energy producer in with 8.6 GW installed capacity Austria with 242 MW installed - One of the largest gas storage - Mcap (6/11/2012): E
Slide 19: RAG – Rohöl-Aufsuchungs AG
EVN at a glance 19 5 RAG – Rohöl-Aufsuchungs AG1) Production statistics 2011 Core areas of business Gas production million m³ 270.5 - Oil and natural gas E&P - Gas storage 2) Gas sales million m³ 695.0 Concessions Gas reserves million m³ 4,300 - Austria (5,414 km²) Oil production t 124,190 - Germany
Slide 20: Substantial contribution to net profit from investments
EVN at a glance 20 5 Substantial contribution to net profit from investments 130 116.3 Strategic investments provide a significant contribution to EVN’s profit 110 25.0 94.0 - RAG and VERBUND are the main 89.4 contributors 90 23.1 22.1 - Income from RAG increased by 36% from EUR 44.3m in 2009/10 to
Slide 21: Solid capital structure and rating supports ongoing investments
EVN at a glance 21 6 Solid capital structure Increase in net debt and gearing ratio due to and rating supports ongoing investments in Austria and SEE Net debt can be easily covered by financial assets available for sale 2,000 1,797.2 100% 1,800 Financial policy going forward based on 1,579.2 1,600 1
Slide 22: Debt maturity profile
EVN at a glance 22 6 Debt maturity profile 1,400 1,250.0 Issue of a new corporate bond 1,200 - EUR 300.0m (10.5 ys, coupon 4.25%) 1,000 733.0 Redemption of corporate bond 800 EURm__ - EUR 257.4m 600 419.0 Issue of private placements 400 - EUR 125.0m 235.0 517.0 (20.0 ys, coupon 4.125%) 200 125.0 82.
Slide 23: Development of electricity and primary energy prices
EVN at a glance 23 Development of electricity and primary energy prices 90 80 forward 70 60 electricity (base) EUR/MWh 50 40 crude oil 30 gas procurement 20 coal 10 0 2007 2008 2009 2010 2011 2012 2013 Slightly decrease in electricity and coal prices Increase of gas prices Average price in euros for
Slide 24: Outlook 2011/12
EVN at a glance 24 Outlook 2011/12 Assumptions EVN‘s expectations - Stable end customers business - Operating results can match prior-year level development - Financial results above previous year’s level - Lower or negative spreads between primary energy and electricity prices - Group net profit co
Slide 25: Financial figures
EVN at a glance 25 Financial figures HY. 1 EURm 2011/12 2010/11 2009/10 2008/09 2007/08 Revenue 1,690.9 2,729.2 2,752.1 2,727.0 2,397.0 EBITDA 325.9 471.4 416.6 373.4 362.3 Group net profit 209.1 189.7 207.0 177.9 186.9 Net cash flow from operating activities 49.3 522.0 499.3 335.3 382.6 Investments
Slide 26: Agenda
26 Agenda EVN at a glance Investments and projects Financial performance 2010/11 Financial performance HY. 1 2011/12
Slide 27: Investments 2010/11
Investments and projects 27 Investments 2010/111) Investments up 5.5% 500 Key investments 415.7 450 415.7 394.0 - Generation: 400 67.4 48.3 Wind power and small-scale hydro power 68.6 projects in Lower Austria 350 300 104.8 112.5 - Network Infrastructure Austria: 100.7 Construction of the natural ga
Slide 28: Strategy to double wind capacity by 2015
Investments and projects 28 Strategy to double wind capacity by 2015 > EVN’s focus on Lower > Strong negotiating power Generate stable, regulated Austria vis-à-vis turbine suppliers cash flows on a long-term basis > 163 MW installed capacities > Wind park IRR (after tax) 7%–8% Austrian Green Electri
Slide 29: Windpower plants in Lower Austria
Investments and projects 29 Windpower plants in Lower Austria 10 windparks (84 wind turbines) - Gänserndorf west (5 wind turbines) - Gänserndorf north (5 wind turbines) - Neusiedl / Zaya (5 wind turbines) - Prellenkirchen (8 wind turbines) - Japons (7 wind turbines) - Kettlasbrunn (20 wind turbines)
Slide 30: Hydropower plants in Lower Austria
Investments and projects 30 Hydropower plants in Lower Austria River Inn - 13% stake in VERBUND-Innkraftwerke GmbH - Capacity: 41 MW (EVN stake) Schütt - Capacity: 2 MW - 2,700 households - Investments: EUR 9.5m Kleinwasserkraftwerk Schaldorf © VERBUND Schaldorf Total capacity of 278 MW1) - Capacity
Slide 31: Hydropower plant projects in Albania
Investments and projects 31 Hydropower plant projects in Albania Project Ashta on the Drin River - 50:50 JV with VERBUND - Capacity: 50 MW - Generation: ~240 GWh p.a. - Supply of 100,000 households - Concession period: 35 years - Start of operations: 2012/13 Project Devoll Project Ashta on the Drin
Slide 32: Hydropower plant project in Bulgaria
Investments and projects 32 Hydropower plant project in Bulgaria Gorna Arda - 70% EVN stake, 30% NEK - River Arda, South Eastern Bulgaria - Total capacity: 120 MW – 170 MW (depending on particular expansion stage) - Generation: ~350 GWh p.a. - Total investments: up to EUR 500m - Start of operations:
Slide 33: Biomass plants in Lower Austria
Investments and projects 33 Biomass plants in Lower Austria 3 new biomass plants in HY. 1 2011/12 - Hagenbrunn (Investments: EUR 3.6m) - Langenlois (Investments: EUR 2.3m) - Hollabrunn (acquisition) 5 biomass plants under construction - Start of construction in Steyr (Investments: EUR 36.0m) Total c
Slide 34: Photovoltaic plants in Bulgaria
Investments and projects 34 Photovoltaic plants in Bulgaria Blatets - Start of operations: May 2010 - Total capacity: 836.7 kWp - Investments: EUR 3m - CO2 savings: 280 t p.a. Trastikovo - Start of operations: July 2011 - EVN‘s largest photovoltaic park - ~25,000 modules - Total capacity: 1,995 kWp
Slide 35: Cogeneration plant in Bulgaria
Investments and projects 35 Cogeneration plant in Bulgaria Plovdiv - Generation of electricity and heat - Start of construction: 2009/10 - Start of operations: December 2011 - Capacity: Electricity: 50 MW Heat: 54 MW - Investments: EUR 50m - Supply of ~33,600 households - Most modern cogeneration pl
Slide 36: Gas supply in Lower Austria
Investments and projects 36 Gas supply in Lower Austria „Südschiene“ - Gänserndorf-Semmering - Completion: July 2011 - Gas pipeline: ~120 km - Investments: EUR 114m „Westschiene“ - Auersthal-Amstetten - Start of construction: June 2011 - Completion: ~September 2013 - Gas pipeline: 143 km - Investmen
Slide 37: Gas supply in Croatia
Investments and projects 37 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
Slide 38: Waste incineration plants
Investments and projects 38 Waste incineration plants Dürnrohr, Lower Austria - Line 3 - Start of operation: early 2010 - Total capacity: 500,000 t p.a. of household residual waste, bulky waste, industrial and commercial waste materials treated - State-of-the-art and largest waste incineration plant
Slide 39: Waste incineration plant project
Investments and projects 39 Waste incineration plant project Moscow - December 2009: Acceptance of a tender to construct another waste treatment plant in Moscow - Total capacity: 700,000 t p.a. - Investments: EUR 575m - Start of operations: 2014
Slide 40: Agenda
40 Agenda EVN at a glance Investments and projects Financial performance 2010/11 Financial performance HY. 1 2011/12
Slide 41: Business achievements 2010/11
Financial performance 2010/11 41 Business achievements 2010/11 Stronger positioning in renewable energy - Acquisition of a 13% stake in VERBUND-Innkraftwerke GmbH - Revitalisation of the Schütt small-scale hydropower plant in Lower Austria - Two new wind parks in Lower Austria - New photovoltaic pla
Slide 42: Group results 2010/11
Financial performance 2010/11 42 Group results 2010/11 Revenue drop in the energy business offset by positive development in Environmental EURm 2010/11 Change Services segment in % Higher EBIT due to one-offs Revenue 2,729.2 –0.8 EBITDA 471.4 13.2 Negative development in financial results EBIT 218.7
Slide 43: Asset impairments 2010/11
Financial performance 2010/11 43 Asset impairments 2010/11 Impairment tests, EURm 2010/11 2009/10 Assumptions used at impairment tests: 1. Gas-fired power plants –38.4 - High gas sourcing costs from long- 2. Procurement rights at term supply contracts and the hydropower plants +31.2 elimination of f
Slide 44: EBITDA development by segments
Financial performance 2010/11 44 EBITDA development by segments Generation Energy Trade Energy Supply Network Infrastructure Environmental and Supply South East Europe Austria Services 220 60% 200 191.4 190.4 57.6% 180 44.3% 50% 159.1 160 39.8% 39.1% 40% 140 34.0% Margin (%) EURm_ 120 103.9 33.1% 30
Slide 45: Generation
Financial performance 2010/11 45 Generation Electricity generation Change Decrease in energy generation volumes (GWh) 2010/11 in % volumes Total 3,000 –9.2 - Lower power generating volumes at thereof thermal energy EVN‘s own thermal power stations sources 1,998 –8.5 - Lower water flow conditions the
Slide 46: Energy Trade and Supply
Financial performance 2010/11 46 Energy Trade and Supply Higher sales volumes to end customers 1) - Electricity: economic upswing and End customer price adjustments expansion of EnergieAllianz outside Gas (12/1/2009) –7.0% Austria (4/1/2011) +8.9% - Heat: higher sales of steam and heat to key accoun
Slide 47: Energy Supply South East Europe
Financial performance 2010/11 47 Energy Supply Sales volumes development South East Europe - Higher electricity sales volumes in Bulgaria and Macedonia 1) Revenue decrease Electricity price adjustments - Bulgaria: mainly due to changed Bulgaria (7/1/2010) +2.0% reporting of tariff components (effect
Slide 48: Network Infrastructure Austria
Financial performance 2010/11 48 Network Infrastructure Austria 1) Tariffs adjustments Diverse network distribution volumes Electricity (1/1/2011) +1.0% - Electricity distribution volumes: Gas (1/1/2011) +10.6% increase due to economic upswing in the first half-year 2010/11 - Gas distribution volume
Slide 49: Environmental Services
Financial performance 2010/11 49 Environmental Services Change Revenue increase due to higher or EURm 2010/11 in % first-time full year earnings Revenue 346.9 21.6 contribution of projects EBITDA 68.9 31.8 - Waste incineration plant and sodium hypochlorite plant in Moscow EBIT 42.9 53.2 Strong EBITD
Slide 50: Financial results 2010/11
Financial performance 2010/11 50 Financial results 2010/11 Financial results dropped by 50% Earnings contribution from 2008/09 investments fell -4.7 -38.5 3 47.4 46.7 50.8 - Higher results from investments in equity accounted investees: 2009/10 RAG: -0.8 -31.9 2 54.7 61.6 83.6 up from EUR 44.3m to E
Slide 51: Balance sheet
Financial performance 2010/11 51 Balance sheet Change Increase of total assets EURm 2010/11 in % 1) - Increase in equity accounted Total assets 6,870.4 2.1 investees Equity 3,176.0 5.0 13%-stake VERBUND-Innkraftwerke Equity ratio (in %) 46.2 1.3p Contribution to capital increase of VERBUND AG Net de
Slide 52: Cash flow
Financial performance 2010/11 52 Cash flow Higher gross CF - Lower profit before income tax - Higher depreciation and amortisation 2010/11 Change EURm in % - Lower non-cash income from investments in equity accounted investees Gross cash flow 478.1 2.2 - Lower non-current provisions Net cash flow fr
Slide 53: Agenda
53 Agenda EVN at a glance Investments and projects Financial performance 2010/11 Financial performance HY. 1 2011/12
Slide 54: Business highlights
Financial performance – HY. 1 2011/12 54 Business highlights Investment focus on renewable energy in Lower Austria - Start-up of the production of the wind park Tattendorf (16 MW) - Aquisition of wind park Pöttelsdorf (9.2 MW) - Start of constraction of wind park Glinzendorf (18 MW) - Start-up of op
Slide 55: Business development
Financial performance – HY. 1 2011/12 55 Business development 2011/12 Change Weather-related revenue EURm HY. 1 in % development Revenue 1,690.9 3.8 Stable EBITDA EBITDA 325.9 0.5 - Operating expenses up 4.6% EBIT 202.8 2.9 Higher EBIT Financial results 73.6 48.6 - Impairment loss of EUR 8.0m vs. EU
Slide 56: EBITDA development by segments
Financial performance – HY. 1 2011/12 56 EBITDA development by segments Generation Energy Trade Network Infrastructure Energy Supply Environmental and Supply Austria South East Europe Services 160 152.4 70% 138.7 143.0 140 60% 64.3% 52.0% 120 48.2% 47.6% 50% 50.5% 100 Margin (%) 35.7% 84.8 40% EURm_
Slide 57: Generation
Financial performance – HY. 1 2011/12 57 Generation Electricity generation 2011/12 Change Reduced use of EVN’s own thermal volumes (GWh) HY. 1 in % power stations Total 1,610 –14.1 - Negative spark spreads thereof thermal energy Revenue increase sources 983 –27.8 thereof renewable energy - Power req
Slide 58: Energy Trade and Supply
Financial performance – HY. 1 2011/12 58 Energy Trade and Supply 1) End customer price adjustments Diverse sales volumes development Gas (4/1/2011) +8.9% - Lower gas sales volumes due to (10/1/2011) reduced use of EVN‘s own thermal +3.6% power plants and higher temperatures Electricity (1/1/2012) –1
Slide 59: Network Infrastructure Austria
Financial performance – HY. 1 2011/12 59 Network Infrastructure Austria 1) Tariffs adjustments Diverse distribution sales volumes Electricity (1/1/2012) – - Electricity: at prior-year level Natural gas (1/1/2012) –1.9% - Natural gas: drop due to reduced use of EVN’s own thermal power plants and high
Slide 60: Energy Supply South East Europe
Financial performance – HY. 1 2011/12 60 Energy Supply South East Europe 1) Electricity price adjustments Temperature-related sales volumes Bulgaria (7/1/2010) electricity +2.0% increase (7/1/2011) electricity +1.9% - BG: heating degree +23.4%p (4/1/2011) heat +6.8% - MK: heating degree +21.2%p Mace
Slide 61: Environmental Services
Financial performance – HY. 1 2011/12 61 Environmental Services 2011/12 Change Lower revenue EURm HY. 1 in % - Lower project invoicing Revenue 167.4 –2.6 - Lower income from waste incineration EBITDA 30.4 –5.0 Financial results down EBIT 17.2 –11.9 - Decreasing interest balance of Financial results
Slide 62: Financial results
Financial performance – HY. 1 2011/12 62 Financial results Financial results increased HY. 1 11/12 -26.4 24.8 74.7 0.5 73.6 Higher income from investments in equity accounted investees HY. 1 10/11 -1.9-18.7 24.5 45.7 49.6 Lower interest results - Higher interest expenses HY. 1 09/10 -13.9 53.0 29.8
Slide 63: Cash flow
Financial performance – HY. 1 2011/12 63 Cash flow 2011/12 Change Lower gross CF EURm HY. 1 in % - Higher non-cash results from at Gross cash flow 258.5 –12.2 equity accounted investees Net cash flow from - Release of non-current provisions operating activities 49.3 –77.7 Decrease of net CF from Net
Slide 64: Investments
Financial performance – HY. 1 2011/12 64 Investments1) 144.7 140 Investments down 17.3% 27.9 119.7 Key investments 120 10.7 - Wind parks in Lower Austria 100 50.3 - Construction of “Westschiene“ EURm_ 80 52.8 - Expansion of heating networks and biomass 60 4.9 capacities in Lower Austria 5.4 - Cogene
Slide 65: Additional information
65 Additional information Stefan Szyszkowitz Investor information on the web CFO www.evn.at Phone: +43 2236 200-12132 www.investor.evn.at Fax: +43 2236 200-82132 www.responsibililty.evn.at E-mail: stefan.szyszkowitz@evn.at E-mail: investor.relations@evn.at Klára Székffy EVN AG Head of Investor Relat
Slide 66: Disclaimer
66 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 expectati