Evn Ag · VIE:EVN
Evn — Non-Deal Roadshow (June 2009)
38 slides from Evn's roadshow presentation, Jun 22, 2009
Slide 1: EVN Presentation
EVN Presentation Sal. Oppenheim, Roadshow New York and Boston, June 22-23, 2009
Slide 2: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results for the 1st half-year 2008/09 > Backups 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'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 6: 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 7: 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 8: Electricity sales and generation 2007/08 (GWh)
Electricity sales and generation 2007/08 (GWh) > Weather related increase of sales volumes: +7.4% 20,000 19,372 > Adjustment of electricity production 18,043 according to market prices 15,641 15,000 > First inclusion of thermal production capacities in South-eastern Europe (District heating plant in
Slide 9: 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 10: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results for the 1st half-year 2008/09 > Backups 10
Slide 11: 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 11
Slide 12: 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 electric
Slide 13: 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 14: 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 15: 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 15
Slide 16: 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 16
Slide 17: 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 17
Slide 18: 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 19: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results for the 1st half-year 2008/09 > Backups 19
Slide 20: Highlights in HY. 2008/09
Highlights in HY. 1 2008/09 > Positive revenue and EBIT development despite earnings decline in Energy supply > Lower income from investments in associates resulting from the price decline for primary energy > Group net profit below previous year‘s level > Successful corporate bond issues, optimisat
Slide 21: Financial highlights HY. 2008/09
Financial highlights HY. 1 2008/09 2008/09 Change > Increase in revenue and earnings in the EUR m HY. 1 % Energy and Environmental Services segment Revenue 1,615.6 18.4 > Higher sales volumes and higher prices EBITDA 277.3 5.8 to partially compensate the higher energy procurement prices in Energy EB
Slide 22: Energy segment
Energy segment 2008/09 Change > Sales volumes: EUR m HY. 1 % – Electricity: +4.3% – Gas: +0.4% Revenue 1,503.5 17.8 – Heating: +26.2% EBITDA 267.9 4.7 > Electricity generation below last EBIT 182.0 5.8 year‘s level > Price adjustments for electricity Financial results -19.4 -33.6 and gas in Austria
Slide 23: Generation business unit
Generation business unit 2008/09 Change > Higher market prices pushed up revenue despite lower volume of EUR m HY. 1 % electricity generated Revenue 71.8 7.2 > Lower volume of electricity generated by EVN‘s own power plants (-10.3%) EBIT 36.3 11.0 due to – Falling spread between wholesale Profit bef
Slide 24: Energy Supply business unit
Energy Supply business unit 2008/09 Change > Constant sales volumes in EUR m HY. 1 % Lower Austria Revenue 770.1 20.1 > Price adjustment of electricity EBIT 71.7 -11.5 and gas due to procurement costs increase in the previous Profit before period income tax 79.4 -10.2 > Long-term procurement Investm
Slide 25: Networks business unit
Networks business unit > Sales volumes: 2008/09 Change – Electricity: +0.3% EUR m HY. 1 % – Gas: -2.7% Revenue 269.8 1.7 > Network tariffs on basis of EBIT 69.4 20.4 incentive regulatory system as of January 2009: Profit before income tax 63.0 24.6 – Electricity: +1.0% – Gas: +7.0% Investments 37.6
Slide 26: South East Europe business unit
South East Europe business unit 2008/09 Change > Electricity sales volumes: EUR m HY. 1 % – Bulgaria: +1.6% – Macedonia: +9.7% Revenue 494.5 22.2 > First full-time consolidation of EBIT 4.6 - district heating company TEZ Profit before Povdiv income tax -12.0 -16.0 > EBIT-improvement by EUR 3.9m Inve
Slide 27: Environmental Services segment
Environmental Services segment 2008/09 Change > New projects under construction EUR m HY. 1 % generated higher revenue contributions Revenue 101.2 33.5 > Increase in EBIT from EUR 1.8m EBITDA 14.5 62.3 to EUR 7.4m EBIT 7.4 - > Financial results burdened by lower contributions from ZOV in Financial r
Slide 28: Income from strategic investments (EUR m)
Income from strategic investments (EUR m) > Income from companies included at 160 148 equity: 140 137 127 – Income from RAG (before minority 33 120 interests) decreased from 41 37 94 EUR 40.5m to EUR 21.9m due to 100 oil and gas price decline 80 70 40 – Decline in income from BEWAG 60 115 and BEGAS
Slide 29: Balance sheet
Balance sheet 2008/09 Change > Decrease of balance sheet total 1) – Decrease in market value of EUR m HY. 1 % the shareholding in Balance sheet total 6,511.4 -1.9 Verbundgesellschaft Equity 2,828.4 -11.8 – Investments below last year‘s level Net debt 1,526.2 34.9 – Lower Group net profit Equity rati
Slide 30: Cash Flow
Cash Flow 2008/09 Change > Lower gross cash value EUR m HY. 1 % – Lower profit before income tax – Lower non-cash items in the Gross cash value 241.0 -13.6 financial results Operating CF -82.2 - – Slightly higher depreciation and amortisation CF from investments -145.5 14.6 > Decline of operating CF
Slide 31: 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 32: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results for the 1st half-year 2008/09 > Backups 32
Slide 33: Key indicators
Key indicators 2007/08 2006/07 2005/06 EBITDA margin % 15.1 15.7 19. 2 EBIT margin % 7.0 8.8 8.9 ROE % 7.4 9.0 10.6 ROCE % 6.3 7.1 7.9 Operating ROCE* % 8.7 9.0 10.8 WACC % 6.5 6.5 6.5 EVA© EUR m 71.7 77.5 118.8 Net Debt % 41.3 50.7 49.1 Coverage Interest Cover x 5.5 5.5 8.1 * OpROCE: adjusted for i
Slide 34: Growth and strong financials
Growth and strong financials EUR m 3,500 60% 3,209 3,015 3,000 2,756 2,500 2,285 50% 48.2% 48.1% 47.1% 48.3% 2,000 1,556 1,513 1,412 1,420 1,500 41.5% 41.7% 1,160 1,037 1,065 1,019 1,038 40% 1,000 38.8% 695 38.0% 741 453 500 0 30% 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Curre
Slide 35: Net debt and Gearing
Net debt and Gearing EUR m 1,200 60% 1,131 1,000 930 50% 825 800 41.5% 674 600 40% 33.8% 35.3% 442 429 33.7% 400 347 342 29.9% 30% 29.5% 27.4% 200 27.6% 0 20% 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Net debt Gearing 35
Slide 36: Earnings per share and payout ratio (EUR, %)
Earnings per share and payout ratio (EUR, %) alles EUR 1.5 1.36 1.39 34 33.1% 32.6% 32.4% 1.2 1.14 32 30 0.9 0.88 0.77 28 27.0% 0.6 26 25.8% 24 0.3 22 0.0 20 2003/04 2004/05 2005/06 2006/07 2007/08 Earnings per share Payout ratio 36
Slide 37: 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 38: 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