Evn Ag · VIE:EVN
Evn — Erste Group Investors Conference, Stegersbach 2009
35 slides from Evn's conference presentation, Oct 8, 2009
Slide 1: EVN Erste Group Investors Conference
EVN Erste Group Investors Conference Stegersbach, October 8, 2009
Slide 2: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results for Q. 1–3 2008/09 2
Slide 3: Company profile – fact sheet 2007/08
Company profile – fact sheet 2007/08 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, Albania, Bulgaria, Croatia, Cyprus, Denmark, Eston
Slide 4: EVN currently active in 18 CEE countries
EVN currently active in 18 CEE countries Highlights Energy supply > About 1 m electricity, gas and heating customers in Lower Austria > 1.6 m electricity, 40,000 heating customers in Bulgaria > 720,000 electricity customers in Macedonia Electricity generation > 1,829 MW generation capacity (gas, coa
Slide 5: EVN Group historical development
EVN Group historical development 1920 1930 1940 1950 1960 1970 1980 1990 2000 2008 Electricity 1922 Gas 1954 Heat 1961 2001/ Drinking water/ 2003 Wastewater Waste 1994/ incineration 2005 Telecom/ Mid Cabel TV/ Internet 90 Privatisation/ going public 5
Slide 6: 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 Central and Eastern Europe > Clear-cut orientation to fulfil capital market requirements, transparency, strong financials and a solid div
Slide 7: 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 8: Diversification led to growth and risk reduction
Diversification led to growth and risk reduction Revenue by segments Revenue by business units 8% 1% 8% 1% 5% 19% 29% Generation 91% 38% Networks Energy Energy Supply Environmental Services South East Europe Strategic Investments and Other Business Environmental Services Strategic Investments and Ot
Slide 9: Electricity sales and generation (GWh)
Electricity sales and generation (GWh) 20,000 19,372 18,043 > Coverage ratio of the Group increased from 19.1% to 20.8% 15,641 15,000 > Coverage ratio excl. Bulgaria and Macedonia from 55.9% to 60.9% 10,000 > Mid-term target: increase of coverage ratio to min. 40% 5,000 4,556 4,022 3,451 0 2005/06 2
Slide 10: Shareholders' structure and TSR
Shareholders' structure and TSR Shareholders’ structure Total Shareholder Return in % 100 1.5 <14% 80 60 51% 40 80.7 >35% 2.3 1.7 20 1.7 2.5 0 14.6 11.4 8.3 -20 -33.7 NÖ Landesbeteiligungs Holding GmbH 30.09.04 30.09.05 30.09.06 30.09.07 30.09.08 EnBW Energie Baden-Württemberg Free float Share price
Slide 11: EVN vs. ATX vs. ATX Prime vs. DJ Euro Stoxx Utilities
EVN vs. ATX vs. ATX Prime vs. DJ Euro Stoxx Utilities Performance Q. 1–3 2008/09 (October 2008 – June 2009) > EVN: -21.1 % > ATX: -24.2 % > Share price June: 11.83 > Value of shares traded1): 143 EUR m > Average daily turnover1): 65.812 1) Vienna Stock Exchange, counted once DJ EURO STOXX UTILITIES
Slide 12: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results for Q. 1–3 2008/09 12
Slide 13: Growth areas – Electricity generation
Growth areas – Electricity generation > Coal-fired power plant in Duisburg-Walsum > Capacity: 790 MW, net efficiency: > 46% > Investment: EUR 820m > Joint venture with Evonik Steag GmbH, EVN’s stake: 49% > Ground-breaking: November 2006 > Production: 2010 13
Slide 14: Growth areas – Bulgaria and Macedonia
Growth areas – Bulgaria and Macedonia > EVN assets: Romania - Network operator / supplier Western North Eastern - District heating plant in Bulgaria Bulgaria Bulgaria Serbia Bulgaria - Hydro power plants in Black Sea Sofia Macedonia South Eastern Bulgaria > Bulgaria: Fully liberalised Skopje electri
Slide 15: Growth areas – Albania
Growth areas – Albania > GDP growth: Romania – 2008: 6.1% Western North Eastern Bulgaria Bulgaria > Bottlenecks in electricity Serbia generation Bulgaria Black Sea Sofia South Eastern > Electricity generation covers Bulgaria only two-third of the Skopje electricity sales volumes Plovdiv Macedonia Tu
Slide 16: The River Devoll Project
The River Devoll Project > BOOT-Concession for three large hydro power plants on the River Devoll in Albania > Capacity: 320 MW > Electricity production: 1,000 GWh p.a. > Investment: EUR 950m > 50:50% joint venture with Statkraft (Norway) > Flexibility and optimisation of applied technology > Stepwi
Slide 17: Growth areas – Environm. Services Segment
Growth areas – Environm. Services Segment > Drinking water plant in Moscow > Capacity: 250,000 m³/d > Investment: EUR 190m > Start of operation: September 2007 > BOOT-model: operation until 2016 17
Slide 18: Growth areas – Environm. Services Segment
Growth areas – Environm. Services Segment > Waste incineration plant in Moscow > Capacity: 360,000 t > Investment: EUR 175m > Start of operation: January 2008 > BOOT-model: operation until 2019 18
Slide 19: Growth areas – Environm. Services Segment
Growth areas – Environm. Services Segment > Ataköy/Istanbul: wastewater treatment plant > Turn-key project and 5-year operation > Capacity: ~ 2 m inhabitants > Start of operation: 2011 > Investment: EUR 108.5m 19
Slide 20: Strategic plans and targets
Strategic plans and targets > Energy segment • Integration of electricity, gas and heating in EVN‘s foreign business activities • Vertical integration along the value chain, generation • Leading market position in all markets • Organic growth and acquisitions > Environmental Services segment • Compr
Slide 21: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results for Q. 1–3 2008/09 21
Slide 22: Highlights in Q. 1-3 2008/09
Highlights in Q. 1-3 2008/09 > Positive revenue and EBIT development despite difficult economic conditions > Lower income from investments mainly resulting from the price decline for primary energy > Group net profit below previous year‘s level > Outlook for the current financial year confirmed > Gr
Slide 23: Financial highlights in Q. 1-3 2008/09
Financial highlights in Q. 1-3 2008/09 2008/09 Change > Increase in revenue EUR m Q. 1-3 % – Energy segment: Higher sales volumes and higher sales price levels partially compen- Revenue 2,150.2 16.7 sate the higher energy procurement prices – Environmental Services segment: New and EBITDA 324.9 8.0
Slide 24: Energy segment
Energy segment 2008/09 Change > Sales volumes EUR m Q. 1-3 % – Electricity: +2.9% – Gas: -4.7% Revenue 1,972.0 16.0 – Heating: +24.9% EBITDA 305.7 4.5 > Electricity generation below last year‘s level EBIT 171.2 1.7 > Higher sales price levels for Financial results -28.8 -21.0 electricity, gas and he
Slide 25: Generation business unit
Generation business unit 2008/09 Change > Higher market prices from the previous year’s contracts pushed up revenue EUR m Q. 1-3 % despite lower electricity generation Revenue 109.5 12.9 > Lower electricity generation by EVN‘s own power plants (-14.2%) due to EBIT 50.4 20.9 – Falling spread between
Slide 26: Energy Supply business unit
Energy Supply business unit 2008/09 Change > Decline in electricity and gas EUR m Q. 1-3 % sales volumes in Lower Austria Revenue 974.0 20.1 > Revenue increase EBIT 52.2 -20.4 – Higher sales price levels of electricity and gas due to higher Profit before energy prices in previous income tax 61.1 -17
Slide 27: Networks business unit
Networks business unit 2008/09 Change > Distribution volumes EUR m Q. 1-3 % – Electricity: -1.6% – Gas: -7.8% Revenue 364.8 -0.9 > Network tariffs on basis of incentive EBIT 67.3 16.1 regulatory system as of January 2009 – Electricity: +1.0% Profit before income tax 57.4 21.1 – Gas: +7.0% > Slight d
Slide 28: South East Europe business unit
South East Europe business unit 2008/09 Change > Electricity sales volumes – Bulgaria: +2.9% EUR m Q. 1-3 % – Macedonia: +7.3% Revenue 680.7 22.3 > First full-time consolidation of district EBIT 1.3 -58.4 heating company TEZ Plovdiv > Improvement in gross margin due to Profit before reduction of gri
Slide 29: Environmental Services segment
Environmental Services segment 2008/09 Change > New and existing projects generated revenue for the first time or made EUR m Q. 1-3 % higher revenue contribution Revenue 162.3 40.8 > Doubling of EBIT to EUR 15.8m EBITDA 26.5 43.4 > Financial results burdened by lower contributions from ZOV in Zagreb
Slide 30: Income from strategic investments (EUR m)
Income from strategic investments (EUR m) > Income from companies included at 160 147.8 equity: 140 137.0 – Income from RAG (before minority 32.7 127.0 110.9 120 interests) decreased from 41.3 37.2 EUR 56.0m to EUR 27.7m due to 100 41.1 84.8 oil and gas price decline 80 – Decline in income from BEWA
Slide 31: Balance sheet
Balance sheet 2008/09 Change > Increase of balance sheet total 1) – Net decrease of non-current assets by EUR m Q. 1-3 % 2.0% due to lower market value of the shareholding in Verbund and lower Balance sheet total 6,756.2 1.8 value of associated companies despite increase of ongoing investments Equit
Slide 32: Cash Flow
Cash Flow 2008/09 Change > Higher gross cash value – Lower profit before income tax EUR m Q. 1-3 % – Higher investment-related Gross cash value 400.4 6.3 depreciation and amortisation – Increase in non-cash share of Operating CF 195.2 -44.9 income from companies included at equity CF from investment
Slide 33: Outlook 2008/09
Outlook 2008/09 Increase in revenue of energy segment as well as Environmental Services segment despite negative effects Revenue of financial and economic crisis Largely stable operating result, excluded any potential negative consequences resulting from political and EBIT regulatory risks Lower pro
Slide 34: 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 35: 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
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