Evn Ag · VIE:EVN
Evn — Institutional Investors Conference 2012
25 slides from Evn's conference presentation, Apr 11, 2012
Slide 1: EVN Institutional Investors Conference
EVN Institutional Investors Conference April 11th, 2012
Slide 2: EVN's strategy – ongoing consolidation
Institutional Investors Conference, April 11th, 2012 2 EVN’s strategy – ongoing consolidation 1 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 2 Maintain market leaders
Slide 3: Increase coverage ratio and diversify generation portfolio
Institutional Investors Conference, April 11th, 2012 3 1 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 - Hold coverage ratio in CWE 50% 40% Market entrance - Increase coverage rat
Slide 4: High quality projects to double generation output by 2020
Institutional Investors Conference, April 11th, 2012 4 EVN strategy 1 High quality 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 Devol
Slide 5: Maintain market leadership in Austria
Institutional Investors Conference, April 11th, 2012 5 2 Maintain market leadership in Austria Lower Austrian electricity market share Austrian electricity market share EVN 10% Others 25% EAA & Partners 19% Others EVN 75% 71% 8.1 TWh 59 TWh Lower Austrian gas market share Lower Austrian gas market s
Slide 6: Enhance efficiency of regulated operations
Institutional Investors Conference, April 11th, 2012 6 3 Enhance efficiency of regulated operations 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 7: Maintain high level of regulated business in Austria
Institutional Investors Conference, April 11th, 2012 7 3 Maintain high level of 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 retro
Slide 8: Efficiency increase in the regulated distribution business in SEE markets
Institutional Investors Conference, April 11th, 2012 8 3 Efficiency increase in the regulated distribution business in SEE markets Electricity Bulgaria Macedonia SEWRC ERC Regulatory authority (State Energy and Water (Energy Regulatory Regulatory Commission) Commission) Reset date 1 Jul 2013 1 Jan 2
Slide 9: Continue improvements in the SEE market
Institutional Investors Conference, April 11th, 2012 9 3 Continue improvements in the SEE market 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%
Slide 10: Capitalise on environmental services business expertise and track record
Institutional Investors Conference, April 11th, 2012 10 4 Capitalise on environmental services business expertise and track record Successful participation in 93 projects in 17 countries since 1983 Strong demand for infrastructure projects set to continue Contract volume of EUR 1.3bn with attractive
Slide 11: Implementation of strategic goals in 2010/11 and Q1 2011/12
Institutional Investors Conference, April 11th, 2012 11 Implementation of strategic goals in 2010/11 and Q. 1 2011/12 Expansion of renewable energy in Lower Austria and abroad - Acquisition of 13% of VERBUND Innkraftwerke GmbH in Bavaria and capacity increase of existing small hydro power plants in
Slide 12: Business development in Q1 2011/12
Institutional Investors Conference, April 11th, 2012 12 Business development in Q. 1 2011/12 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 Finan
Slide 13: EBITDA development by segments
Institutional Investors Conference, April 11th, 2012 13 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
Slide 14: Financial results in Q1 2011/12
Institutional Investors Conference, April 11th, 2012 14 Financial results in Q. 1 2011/12 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 4.0
Slide 15: Strengthening of liquidity position
Institutional Investors Conference, April 11th, 2012 15 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 pro
Slide 16: Favourable debt maturity profile
Institutional Investors Conference, April 11th, 2012 16 Favourable debt maturity profile 1,400 1,250 Redemption of EUR bond with nominal 1,200 value of EUR 257.4m on December 14th, 2011 1,000 Share of fixed interest debt as of March 733 31th, 2012: 76% 800 EURm__ Average financing costs: 4.2% 600 41
Slide 17: Solid capital structure and rating supports
Institutional Investors Conference, April 11th, 2012 17 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 1,378.2 1,458.2 100% Financial
Slide 18: Outlook 2011/12
Institutional Investors Conference, April 11th, 2012 18 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 ele
Slide 19: Windpower plants in Lower Austria
Institutional Investors Conference, April 11th, 2012 19 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) - Ket
Slide 20: Hydropower plants in Lower Austria
Institutional Investors Conference, April 11th, 2012 20 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 -
Slide 21: Hydropower plant projects in Albania
Institutional Investors Conference, April 11th, 2012 21 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 Devol
Slide 22: Hydropower plant project in Bulgaria
Institutional Investors Conference, April 11th, 2012 22 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
Slide 23: Cogeneration plant in Bulgaria
Institutional Investors Conference, April 11th, 2012 23 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
Slide 24: Disclaimer
24 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 25: EVN Investor Relations Additional information
25 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