Slide 1: EVN Company presentation May 2012
EVN Company presentation May 2012
Slide 2: Agenda
2 Agenda EVN at a glance Investments and projects Financial performance 2010/11 Financial performance Q. 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 windparks in Lower Austria - Capacity increase of existing small hydro power plants in Lower Austria - Completi
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% 68.8% Macedonia - Increase coverage ratio in SEE 30% 56.1% 40%
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 2.845 (Pro-rata installed capacity , MW) 119 192 53 173 25 410 84 128 1.873 1.820 2.746 1.583 1.608 1.692 1.410 1.000 Status quo Walsum Wind parks 1) Ashta Gorna Arda Devoll Others 2) 2010/11 (financed) (partly financed) Selec
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 grid volumes per customer (%)1) households (EUR cent/kWh) efficiency (%) 25 120 Upside potential 100 20 100 80 80 15 54 24% 60 22% 21% 10 17% 17% 18% 15% 16% 40 14%
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 - #2 oil and gas producer in AT - #1 green energy producer in Austria with 8.6 GW installed - One of the largest gas Austria with 242 MW capacity storage operators in Central installed
Slide 19: Substantial contribution to net profit from investments
EVN at a glance 19 5 Substantial contribution to net profit from investments 130 116.3 Strategic investments provide a significant contribution to EVN’s 110 25.0 profit 94.0 89.4 - RAG and VERBUND are the main 90 23.1 contributors 22.1 - Income from RAG increased by 36% from 70 50.1 9.4 EUR 44.3m in
Slide 20: Solid capital structure and rating supports payout ratio
EVN at a glance 20 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 1,579.2 1,600 1,458.2 100% Financial policy going forward based on 1,378.2 1,400
Slide 21: Debt maturity profile
EVN at a glance 21 6 Debt maturity profile 1,400 1,250 Redemption of EUR bond with 1,200 nominal value of EUR 257.4m on December 14th, 2011 1,000 733 Share of fixed interest debt as of 800 March 31th, 2012: 76% EURm__ 600 Average financing costs: 4.2% 419 400 Financial flexibility: 235 517 200 125 -
Slide 22: Outlook 2011/12
EVN at a glance 22 Outlook 2011/12 Assumptions EVN‘s expectations - Stable end customers business - Revenue and operating results to development remain stable - Lower or negative spreads between - Financial results to exceed previous year’s primary energy and electricity prices level - Stable order
Slide 23: Financial figures
EVN at a glance 23 Financial figures EURm 2010/11 2009/10 2008/09 2007/08 2006/07 Revenue 2,729.2 2,752.1 2,727.0 2,397.0 2,233.1 EBITDA 471.4 416.6 373.4 362.3 350.7 Group net profit 189.7 207.0 177.9 186.9 227.0 Net cash flow from operating activities 522.0 499.3 335.3 382.6 342.8 Investments1) 41
Slide 24: Agenda
24 Agenda EVN at a glance Investments and projects Financial performance 2010/11 Financial performance Q. 1 2011/12
Slide 25: Investments 2010/11
Investments and projects 25 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 26: Strategy to double wind capacity by 2015
Investments and projects 26 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 27: Windpower plants in Lower Austria
Investments and projects 27 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 28: Hydropower plants in Lower Austria
Investments and projects 28 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 © VERBUND VERBUND-Innkraftwerke Schaldorf - Capacity: 1 MW - 1,500 households - Completi
Slide 29: Hydropower plant projects in Albania
Investments and projects 29 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 - 50:50 JV with Statkraft
Slide 30: Hydropower plant project in Bulgaria
Investments and projects 30 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 31: Photovoltaic plants in Bulgaria
Investments and projects 31 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 32: Cogeneration plant in Bulgaria
Investments and projects 32 Cogeneration plant in Bulgaria Plovdiv - Generation of electricity and heat - Start of construction: 2009/10 - Start of operations: end 2011 - Capacity: Electricity: 50 MW Heat: 54 MW - Investments: EUR 50m - Supply of ~33,600 households - Most modern cogeneration plant i
Slide 33: Gas supply in Lower Austria
Investments and projects 33 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: ~150 km - Investme
Slide 34: Gas supply in Croatia
Investments and projects 34 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 35: Waste incineration plants
Investments and projects 35 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 36: Waste incineration plant project
Investments and projects 36 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 37: Agenda
37 Agenda EVN at a glance Investments and projects Financial performance 2010/11 Financial performance Q. 1 2011/12
Slide 38: Business achievements 2010/11
Financial performance 2010/11 38 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 39: Development of electricity and primary energy prices
Financial performance 2010/11 39 Development of electricity and primary energy prices 90 energy prices forward 80 in EUR/MWh 70 electricity (base) 60 50 crude oil 40 30 20 gas procurement 10 coal 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Increase in electricity and primary energy prices - Ongoi
Slide 40: Group results 2010/11
Financial performance 2010/11 40 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 41: Asset impairments 2010/11
Financial performance 2010/11 41 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 42: EBITDA development by segments
Financial performance 2010/11 42 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 43: Generation
Financial performance 2010/11 43 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 44: Energy Trade and Supply
Financial performance 2010/11 44 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 45: Energy Supply South East Europe
Financial performance 2010/11 45 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 46: Network Infrastructure Austria
Financial performance 2010/11 46 Network Infrastructure Austria 1) Tariffs adjustments Diverse network distribution Electricity (1/1/2011) +1.0% volumes Gas (1/1/2011) +10.6% - Electricity distribution volumes: increase due to economic upswing in the first half-year 2010/11 Network distribution 2010
Slide 47: Environmental Services
Financial performance 2010/11 47 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 48: Financial results 2010/11
Financial performance 2010/11 48 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 49: Balance sheet
Financial performance 2010/11 49 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 50: Net debt development
Financial performance 2010/11 50 Net debt development 1,800 1,579.2 1,600 105.4 1,458.2 -175.5 1,378.2 1,400 1,200 1,000 EURm_ -478.1 -7.0 676.1 800 600 400 200 0 30.9.2009 30.9.2010 Gross cash flow Working Capital, Investments Dividends Capital increase 30.9.2011 Taxes, Others
Slide 51: Cash flow
Financial performance 2010/11 51 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 52: Agenda
52 Agenda EVN at a glance Investments and projects Financial performance 2010/11 Financial performance Q. 1 2011/12
Slide 53: Business highlights
Financial performance Q. 1 2011/12 53 Business highlights Investment focus on wind energy in Lower Austria - Capacity increase by 15% to 163 MW; supply of 100,000 households Start of construction for a biomass district heating plant in Steyr Completion of the first construction stage of „Westschiene
Slide 54: Business development
Financial performance Q. 1 2011/12 54 Business development 2011/12 Change Weather-related revenue EURm Q. 1 in % development Revenue 829.7 3.4 - Energy business: increase EBITDA 167.6 5.8 - Environmental services business: decrease EBIT 104.7 0.7 Higher EBITDA Financial results 17.3 6.6 - Operating
Slide 55: EBITDA development by segments
Financial performance Q. 1 2011/12 55 EBITDA development by segments Generation Energy Trade Energy Supply Network Infrastructure Environmental and Supply South East Europe Austria Services 80 74.2 70% 68.8 66.7% 63.7 60% 53.0% 60 47.0% 46.7% 50% 41.6% 52.9% 45.0 44.0 Margin (%) 42.3 40% EURm_ 40 28
Slide 56: Generation
Financial performance Q. 1 2011/12 56 Generation Electricity generation 2011/12 Change Decline of power generation volumes (GWh) Q. 1 in % - Negative spark spreads Total 800 –26.8 - Lower water flow conditions thereof thermal energy 547 –34.7 sources Revenue increase thereof renewable energy 253 –0.
Slide 57: Energy Trade and Supply
Financial performance Q. 1 2011/12 57 Energy Trade and Supply 1) End customer price adjustments Weather-related lower sales Gas (4/1/2011) +8.9% volumes to end customers (10/1/2011) +3.6% - Natural gas: reduced use of EVN‘s own thermal power plants Sales volumes to end 2011/12 Change Revenue increas
Slide 58: Network Infrastructure Austria
Financial performance Q. 1 2011/12 58 Network Infrastructure Austria 1) Tariffs adjustments Diverse distribution sales Electricity (1/1/2011) +1.0% volumes Natural Gas (1/1/2011) +10.6% - Electricity: at the prior-year level - Natural gas: reduced use of EVN’s own thermal power plants Network distri
Slide 59: Energy Supply South East Europe
Financial performance Q. 1 2011/12 59 Energy Supply South East Europe 1) Electricity price adjustments Temperature-related sales volumes Bulgaria (7/1/2010) +2.0% increase (7/1/2011) +1.9% - BG: heating degree +38.8%p Macedonia (1/1/2010) +5.1% 2) - MK: heating degree +34.3%p (3/1/2011) +4.9% 2) Rev
Slide 60: Environmental Services
Financial performance Q. 1 2011/12 60 Environmental Services 2011/12 Change Weather-driven revenue decline EURm Q. 1 in % EBITDA and EBIT drop Revenue 84.1 –16.5 EBITDA 14.4 –13.8 Financial results down EBIT 7.8 –25.7 - Decreasing interest balance of projects during the operational phase Financial r
Slide 61: Financial results
Financial performance Q. 1 2011/12 61 Financial results Q. 1 11/12 -2.0 -13.2 - 32.4 17.3 Financial results increased Higher income from investments in equity accounted investees Q. 1 10/11 -1.2 -9.4 - 26.7 16.2 - EconGas: EUR 8.5m, + EUR 3.1m - BEWAG/BEGAS: EUR 4.0m, Q. 1 09/10 -7.0 - 7.6 2.9 3.6 +
Slide 62: Balance sheet
Financial performance Q. 1 2011/12 62 Balance sheet 2011/12 Change Increase of total assets 1) EURm Q. 1 in % - Increase in equity accounted Total assets 6,985.0 1.7 investees: higher earnings and capital contribution for projects and Equity 3,206.5 1.0 new investments Equity ratio (in %) 45.9 –0.3p
Slide 63: Cash flow
Financial performance Q. 1 2011/12 63 Cash flow 2011/12 Change Higher gross CF EURm Q. 1 in % - Higher depreciation and amortisation Gross cash flow 149.5 6.8 - Higher level of non-current provisions Net cash flow from Decrease of net CF from operating activities 25.9 –69.2 operating activities Net
Slide 64: Investments
Financial performance Q. 1 2011/12 64 Investments1) 80 74.7 76.0 Investments up 1.7% 70 6.3 16.1 Key investments 60 - Wind parks in Lower Austria 50 41.3 - Construction of „Westschiene“ 30.0 EURm_ 40 - Expansion of heating networks in Lower Austria 30 2.7 3.8 - Cogeneration plant in Plovdiv, Bulgari
Slide 65: Disclaimer
65 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
Slide 66: EVN Investor Relations Additional information
66 EVN Investor Relations Additional information Stefan Szyszkowitz Investor information on the web Chief Financial Officer 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