Evn Ag · VIE:EVN
Evn — Investor Day (June 2008)
37 slides from Evn's investor day presentation, Jun 4, 2008
Slide 1: Austria Investor Day, Zurich, June 4, 2008
Austria Investor Day Zurich, June 4, 2008
Slide 2: Financial highlights HY 1 2007/08
Financial highlights HY. 1 2007/08 2007/08 Change > Weather-related increase in Energy segment sales volumes EUR m HY. 1 % and revenues Revenue 1,365.0 9.0 > Decrease in revenues in EBITDA 262.0 2.3 Environmental Services segment Æ Delayed start of smaller, new EBIT 170.6 -0.7 projects Financial res
Slide 3: Highlights in HY 1 2007/08
Highlights in HY. 1 2007/08 > Weather-related increase in Energy segment sales volumes and revenue > Acquisition of a 49% shareholding in the district heating company Fernwärme St. Pölten GmbH > Initial consolidation of the Bulgarian district heating plant EVN Bulgaria Toplofikatsia EAD in Plovdiv >
Slide 4: Energy segment
Energy segment 2007/08 Change > Increase in sales volumes EUR m HY. 1 % • Gas +14.0% Revenue 1,276.5 12.7 • Heat +16.3% EBITDA 255.8 8.5 • Electricity +7.9% EBIT 172.0 7.8 > Increase of electricity generation Financial results -14.5 -40.0 > Effects of former price adjustments for electricity and Pro
Slide 5: Generation business unit
Generation business unit 2007/08 Change > Increase in spot market prices EUR m HY. 1 % Æ adjustment of electricity Revenue 66.9 12.1 generation +26.3% EBIT 32.7 12.7 • Thermal power +26.7% Profit before • Renewable energy +25.1% income tax 28.9 11.4 Investments 12.0 >100 > Revenue: +EUR 7.2m > EBIT
Slide 6: Energy Procurement and Supply business unit
Energy Procurement and Supply business unit 2007/08 Change EUR m HY. 1 % > Considerable weather-related Revenue 641.3 10.6 increase in sales volumes EBIT 80.9 18.0 > Price adjustments Profit before income tax 88.4 17.8 • Effects of the price adjustments in December Investments 0.1 -97.7 2006 due to
Slide 7: Electricity sales and generation – EVN Group
Electricity sales and generation – EVN Group GWh > Adjustment of electricity production to the market 12,000 prices 10,421 • Higher spot market prices 10,000 9,731 • Favourable water flow 8,000 conditions 6,000 5,393 4,966 > Coverage ratio of the Group 4,000 25.2%, up from 21.3% 2,623 2,078 2,000 83
Slide 8: Networks business unit
Networks business unit > Weather-related increase in 2007/08 Change distribution volumes: EUR m HY. 1 % • Electricity: + 4.1% Revenue 265.3 3.5 • Gas: +13.9% EBIT 57.7 -13.1 > Gas network tariffs Profit before • -4% (January 1, 2007) income tax 50.5 -17.6 • -2% (February 1, 2008) Investments 57.6 91
Slide 9: South East Europe business unit
South East Europe business unit 2007/08 Change > Electricity sales volumes: EUR m HY. 1 % • Bulgaria: +11.1% Revenue 404.7 24.6 • Macedonia: +8.9% EBIT 0.7 >100 > Slight, but insufficient price Profit before increases: income tax -10.3 21.0 • Bulgaria: in July 2007 Investments 93.8 >100 • Macedonia:
Slide 10: Environmental Services segment
Environmental Services segment 2007/08 Change > Delayed start of various smaller EUR m HY. 1 % projects can only partially offset Revenue 75.8 -28.9 the volume of the large comple- ted projects Æ decline of revenue EBITDA 8.9 -63.4 > Stronger financial results due to EBIT 1.8 -89.1 completion of lar
Slide 11: Income from investments (EUR m)
Income from investments (EUR m) alles > Investments - at equity : 160 • Income from RAG (before minority 147.8 interest) rose from EUR 29.5m to 140 32.7 126.0 EUR 40.5m (+37.3%) 120 100 37.2 95.1 93.9 > Other investments: 80 72.2 • Dividend from Verbund- 38.4 39.9 gesellschaft increased from EUR 60
Slide 12: Consolidated balance sheet
Consolidated balance sheet > Increase of balance sheet 2007/08 Change total: EUR m HY. 1 % • Higher investments in the Net- Balance sheet 6,679.1 6.7 works and South East Europe business units as well as Equity 3,300.3 9.5 acquisitions • Positive development of Net debt 1,092.7 36.7 companies includ
Slide 13: Consolidated cash flow
Consolidated cash flow 2007/08 Change > Higher gross cash value due to EUR m HY. 1 % increased depreciation and Gross cash value 287.9 3.8 amortisation as well as a rise in non-cash items in the financial Net cash from op. act. 177.5 69.4 results Net cash from inv. act. -170.4 -80.0 > Strong increas
Slide 14: EVN share price – relative development
EVN share price – relative development 140 HY. 1 2007/08 (October 2007 – March 2008) 130 > EVN: -11.1 % > ATX: -16.8 % 120 > ATX Prime: -17.8 % > EVN closing price: 110 80.49 EUR > Value of shares traded1): 100 218 m EUR 90 > Average daily turnover 1): 20,060 80 O N D J F M A M J J A S O N D J F M A
Slide 15: Total Shareholder Return
Total Shareholder Return % 100 1.5 80 60 40 80.7 20 2.3 1.7 1.7 2.1 14.6 11.4 0 8.3 -17.7 -20 2002/03 2003/04 2004/05 2005/06 2006/07 Share price development Dividend yield TSR = 12.97% p.a. since IPO in 1989 15
Slide 16: Outlook 2007/08
Outlook 2007/08 Aktie Revenue Further increase in revenue EBIT, It will hardly be possible to match last year’s record Financial results, results in 2007/08 Net profit Energy concept for the Lower Austrian Central Region Electricity and gas networks in Lower Austria: modernisation to ensure supply S
Slide 17: Backup
Backup
Slide 18: Temperature profile
Temperature profile 30 Trend 2006/07 25 Heating period Ø-temperatur (1.10-31.3) ø 10-year: 3.9°C 20 2005/06: 2.7°C 2006/07: 7.5°C Trend 15 ø 10-year °Degree 10 Trend 2005/06 5 0 1.10. 31.10. 30.11. 30.12. 29.1. 28.2. 30.3. 29.4. 29.5. 28.6. 28.7. 27.8. 26.9. -5 Trend 2007/08 -10 -15 Cold temperature
Slide 19: Primary energy price trends
Primary energy price trends Forward prices 80 Energy prices 70 in EUR/MWh Electricity 60 50 40 Oil 30 Gas 20 Coal 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Significant increase of primary energy prices 19
Slide 20: Electricity wholesale prices – forward market
Electricity wholesale prices – forward market 100 Frontjahr Peak Frontjahr Base 90 Ø 81.08 Ø 88.10 80 Ø 79.41 EUR / MWh 70 Ø 63.40 60 Ø 55.04 Ø 56.31 Ø 55.90 50 40 Ø 41.22 30 2005 2006 2007 2008 Increase of the electricity front year base and peak prices 20
Slide 21: CO2 emission certificates – price development
CO2 emission certificates – price development 35 max: 32.03 30 25 20 EUR / t 15 min: 12.25 10 5 Period 1 (until 31.12.2007) Period 2 (from 1.1.2008) 0 Jan 05 June 05 Dec 05 June 06 Dec 06 June 07 Dec 07 June 08 CO2 emission certificates prices at EUR 25/t 21
Slide 22: Appendix
<li Appendix
Slide 23: Company profile – fact sheet
Company profile – fact sheet EVN is a leading integrated energy and environmental service group serving customer in Lower Austria and EVN Central and Eastern Europe Business areas Electricity, gas, heating, water, waste incineration Austria, Bulgaria, Croatia, Cyprus, Estonia, Germany, Poland, Lithu
Slide 24: EVN currently active in CEE countries
EVN currently active in 14 CEE countries Highlights > 1 m electricity, gas, heat and water customers in Lower Austria > 1.6 m electricity customers in Bulgaria > 720,000 electricity customers in Macedonia > 1,819 MW generation capacity (gas, coal, hydro, wind and biomass) > Coal-fired power plant of
Slide 25: EVN's strategy – Multi-service utility
EVN‘s strategy – Multi-service utility > „Two-pillar“ strategy – focus on the Energy and Environmental Services segments > Organic growth with a regional focus on focus on Central and Eastern Europe > Clear-cut orientation to fulfil capital market requirements, transparency, strong financials and a
Slide 26: Focus on Energy and Environmental Services
Focus on Energy and Environmental Services Traditional EVN … complemented by related core activities … infrastructure and environmental services > Energy > Environment > Generation > Waste incineration > Networks > Drinking water > Waste water > Supply > Benefit from strategic advantages: > Common c
Slide 27: Development of EVN – key figures (EUR m)
Development of EVN – key figures (EUR m) Total revenue EBIT Group net profit + 40% + 50% + 58% 2,233.1 250 250 2,500 227.0 2,071.6 221.9 197.3 200 184.4 200 2,000 1,609.5 131.0 144.4 1,500 150 150 1,000 100 100 500 50 50 2004/05 2005/06 2006/07 2004/05 2005/06 2006/07 2004/05 2005/06 2006/07 27
Slide 28: Diversification led to growth and risk reduction
Diversification led to growth and risk reduction aus Revenue by segments Revenue by business units 1% 5% 1% 12% 12% 19% 2% 26% 98% 2006/07 2002/03 Generation 87% 37% Networks Energy Energy Supply Environmental Services South East Europe Strategic and Other Business Environmental Services Strategic I
Slide 29: Growth areas – Energy Segment – SEE
Growth areas – Energy Segment – SEE > EVN assets: Romania >network operator / supplier Western North Eastern >district heating plant in Bulgaria Bulgaria Bulgaria Serbia Bulgaria >hydro power plants in Black Sea Macedonia Sofia South Eastern Bulgaria > Bulgaria: fully liberalised electricity market
Slide 30: Growth areas – Energy Segment
Growth areas – Energy Segment > Coal-fired power plant in Duisburg-Walsum > Capacity: 790 MW, net efficiency level > 46% > Investment: EUR 820m > Joint venture with Evonik Steag GmbH, EVN’s stake: 49% > Production: 2010 > Ground-breaking: November 2006 30
Slide 31: Growth areas – Environm. Services Segment – CEE
Growth areas – Environm. Services Segment – CEE > Drinking water plant in Moscow > Capacity: 250,000 m³/d > Investments: EUR 190m > Start of operation: September 2007 > BOOT-model: operation until 2016 31
Slide 32: Growth areas – Environm. Services Segment – CEE
Growth areas – Environm. Services Segment – CEE > Waste incineration plant in Moscow > Capacity: 360,000 t/a. > Investments: EUR 175m > Start of operation: January 2008 > BOOT-model: operation until 2019 32
Slide 33: Growth areas – Environm. Services Segment - SEE
Growth areas – Environm. Services Segment - SEE > Ataköy/Istanbul: wastewater treatment plant > Turn-key project and 5-year operation > Capacity: ~ 2 m inhabitants > Start of operation: 2011 > Investment: EUR 108.5m 33
Slide 34: Growth while keeping financial strength (EUR m)
Growth while keeping financial strength (EUR m) alles 3,500 3,014.7 3,000 2,756.0 2,500 2,285.4 2,000 1,555.7 1,419.8 1,500 1,412.4 1,160.2 1,018.5 1,037.8 1,000 740.6 500 0 2002/03 2003/04 2004/05 2005/06 2006/07 Current and non-current loans and borrowings Equity 34
Slide 35: Development net debt (EUR m)
Development net debt (EUR m) alles Financial assets available for sale 1,000 930.0 147 Burgenland Holding 900 825.3 800 700 673.8 362.5 600 399.8 500 429.3 238.2 400 1,600 Verbundgesellschaft 300 215.2 567.5 200 435.5 425.5 100 214.1 0 2003/04 2004/05 2005/06 2006/07 Non-recourse liabilities Net deb
Slide 36: EVN Investor Relations
EVN Investor Relations For further information please contact: Michael Längle EVN on the Internet: Chief Financial Officer www.evn.at Phone +43/2236-200-12324 www.investor.evn.at Fax +43/2236-200-84715 www.responsibility.evn.at E-Mail michael.laengle@evn.at E-Mail: investor.relations@evn.at Klára Sz
Slide 37: Disclaimer
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