Evn Ag · VIE:EVN
Evn — SGCIB Utilities Conference 2010
35 slides from Evn's conference presentation, Jan 14, 2010
Slide 1: SGCIB Utilities Conference, Paris
EVN SGCIB Utilities Conference Paris, January 14, 2010
Slide 2: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results for 2008/09 2
Slide 3: Company profile – fact sheet 2008/09
Company profile – fact sheet 2008/09 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 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, Eastern and south- eastern Europe > Clear-cut orientation to fulfil capital market requirements, transparency, strong financials
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 9% 1% 5% 9% 1% 15% 30% Generation 40% 90% 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) 19,372 19,541 20,000 > Coverage ratio of Group decreased 18,043 from 20.8% to 17.8% 15,000 > Coverage ratio excl. Bulgaria and Macedonia from 60.9% to 51.4% 10,000 > Mid-term target: increase of coverage ratio to min. 40% 5,000 3,451 4,022 3,477 0 2006/07 2007/
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% 1.7 20 1.7 11.4 2.5 2.7 0 8.3 -8.7 -20 -33.7 NÖ Landesbeteiligungs Holding GmbH 30.09.05 30.09.06 30.09.07 30.09.08 30.09.09 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 2008/09 (October 2008 – September 2009) > EVN: –8.7% > ATX: –4.7% > DJ EuroStoxx Utilities –14.4% > Share price September: EUR 13.68 > Value of shares traded1): EUR 209m > Average daily turnover1): 69,031 DJ EURO STOXX UTILITIES 1) Vi
Slide 12: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results for 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 Romania > Bottlenecks in electricity Western North Eastern generation Bulgaria Bulgaria Serbia Bulgaria > Electricity generation covers Black Sea Sofia only two-third of the South Eastern electricity sales volumes Bulgaria Skopje Plovdiv > Majority of the electricity Macedonia
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 2008/09 21
Slide 22: Financial highlights 2008/09
Financial highlights 2008/09 Change > Increase in revenue and earnings EUR m 2008/09 % > Higher sales volumes and higher prices Revenue 2,727.0 13.8 to partially compensate the higher energy procurement prices in Energy EBITDA 373.4 3.1 segment as well as new projects in EBIT 175.2 5.2 Environmental
Slide 23: Milestones in 2008/09
Milestones in 2008/09 > District heating transmission pipeline to St. Pölten completed > Start of construction of the trans-regional gas transport pipeline ”Südschiene” in Lower Austria > Takeover of the cable network operator B.net in Burgenland > Hard coal fired power plant in Duisburg-Walsum befo
Slide 24: Energy segment
Energy segment Change > Stable electricity sales volumes, EUR m 2008/09 % weather related decline in gas and massive increase of heat sales Revenue 2,459.3 12.7 volumes – Electricity: +0.9% EBITDA 341.7 1.7 – Gas -9,7% – Heating +15.7% EBIT 158.7 2.3 > Decline in electricity generation Financial res
Slide 25: Generation business unit
Generation business unit Change > Falling spread between wholesale EUR m 2008/09 % prices and primary energy prices Revenue 146.1 17.3 > Lower volume of electricity generated by EVN‘s own power plants (-13.6%) EBIT 62.9 31.5 > Successful long-term marketing Profit before strategy EBIT: +31.5% inco
Slide 26: Energy Supply business unit
Energy Supply business unit Change EUR m 2008/09 % > Constant electricity sales volumes in in Lower Austria, significant decline in Revenue 1,189.8 19.1 gas and increase in heat volumes EBIT 22.6 –31.2 > Price adjustment of electricity and gas due to procurement costs increase in Profit before the p
Slide 27: Networks business unit
Networks business unit > Declining sales volumes Change – Electricity: -2.1% EUR m 2008/09 % – Gas: -8.8% Revenue 467.9 –1.4 > Network tariffs on basis of incentive regulatory system as of 1.1.2009 EBIT 66.2 14.0 – Electricity: +1.0% Profit before – Gas: +7.0% income tax 52.4 21.6 > Network revenues
Slide 28: South East Europe business unit
South East Europe business unit Change > Electricity sales volumes EUR m 2008/09 % – Bulgaria: -1.1% Revenue 878.7 16.5 – Macedonia: +5.3% > Price effects: slight but unsatisfactory EBIT 7.1 –57.1 sale price adjustments in Bulgaria and Macedonia Profit before income tax –18.4 – > EBIT decline due to
Slide 29: Environmental Services segment
Environmental Services segment Change > New projects under construction generated higher revenue contributions EUR m 2008/09 % > Increase in EBIT from EUR 25.4m to Revenue 236.1 27.9 EUR 27.5m EBITDA 42.0 6.1 > Financial results slightly below the previous year’s level EBIT 27.5 8.5 > Completed proj
Slide 30: Income from strategic investments (EUR m)
Income from strategic investments (EUR m) > Income from companies included at 160 147.8 equity 137.0 137.0 140 – Income from RAG (before minority 32,7 127.0 interests) decreased from 120 41,3 EUR 83.0m to EUR 32.2m due to 41,3 94.0 37,2 oil and gas price decline 100 – Income from EconGas of EUR 9.4m
Slide 31: Balance sheet
Balance sheet Change > Balance sheet total stable EUR m 2008/09 % - Investments on last year‘s level - Decrease in market value of the Balance sheet total 6,695.4 0.9 shareholding in Verbundges - Lower Group net profit Equity 3,127.2 –2.5 - Increase of non-current loans and borrowings Net debt 1,378
Slide 32: Cash Flow
Cash Flow Change > Higher gross cash flow despite the EUR m 2008/09 % reduced profit before income tax - Higher non-cash items of income Gross cash flow 445.1 4.3 from at equity investments - Higher non-current provisions CF from operating act. 335.3 –12.4 > Decline of operating CF CF from investmen
Slide 33: Outlook
Outlook 2008/09 Forecast for 2009/10 vs. 2008/09 Revenue EUR 2,727.0m Slightly above the previous year’s level EBIT EUR 175.2m At the previous year’s Financial results EUR 50.8m At the previous year’s Net profit EUR 177.9m At the previous year’s Continuation of EVN long-term Investments EUR 415.7m i
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