Evn Ag · VIE:EVN
Evn — Institutional Investors Conference, Zuers 2010
30 slides from Evn's conference presentation, Apr 15, 2010
Slide 1: Institutional Investors Conference
EVN Institutional Investors Conference Zuers, April 15, 2010
Slide 2: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results Q. 1 2009/10 2
Slide 3: EVN currently active in 18 CEE countries
EVN currently active in 18 CEE countries 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, coal, hydro, w
Slide 4: EVN's strategy – Integrated utility
EVN's strategy – Integrated utility > „Two-pillar“ strategy – focus on the Energy and Environmental Services segments – High level of horizontal and vertical integration of the different business units > Organic growth with a focus on markets where EVN has specific market expertise – In the energy s
Slide 5: Growth through new markets and diversification
Growth through new markets and diversification Revenue, EBITDA EURm, EBITDA margin % > Group revenues increased by 22% in 3 years 3,000 2,727.0 – Revenues of energy business 50 2,397.0 grew by 27% 2,500 2,233.1 40 > Share of energy business: 90% 2,000 – Share of energy business in 30 South-eastern E
Slide 6: Growth while keeping financial strength
Growth while keeping financial strength Equity, Net debt EURm, Gearing % > Increase in net debt due to ongoing investments in 3,500 100 Austria and south-eastern 3,208.5 3,127.2 3,014.7 3,000 90 Europe 80 > Increase of Gearing ratio 2,500 70 60 > Net debt can be easily 2,000 covered by financial ass
Slide 7: Income from strategic investments
Income from strategic investments (EUR m) > Selected strategic investments – Strengthen vertical integration – Contribute to profitability 160 127.0 137.0 – Financial hedge, compensation for 140 increasing primary energy costs 120 – Partnership in regional energy supply 41.3 37.2 94.0 business 100 >
Slide 8: EVN shows a resilient competitive position
EVN‘s shows a resilient competitive position > Stable and reliable customer base > Large share of household customers > The market share in residential electricity and gas supply in Lower Austria remains very strong and stable at above 95% thus ensuring the company’s key ability to generate cash flo
Slide 9: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results Q. 1 2009/10 9
Slide 10: Electricity sales and generation
Electricity sales and generation (GWh) > The coverage ratio of Group stands currently at roughly 20% 19,541 > >Excluding Bulgaria 20,000 18,043 19,372 Coverage ratio ofand Macedonia, Group the decreased coverage ratio to from 20.8% is 17.8% 50-65% 15,000 > >The mid-termratio Coverage target of the e
Slide 11: Growth areas – Electricity generation in Germany
Growth areas – Electricity generation in Germany > 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 > Start up: second half of 2010 11
Slide 12: EVN's markets in South-eastern Europe
EVN’s markets in South-eastern Europe > EVN’s assets in Bulgaria and Romania Macedonia: – Network operator / supplier Western North Eastern Bulgaria Bulgaria – District heating plant Serbia Bulgaria – Hydro power plants Black Sea Sofia > Bulgaria: Liberalised electricity South Eastern Bulgaria marke
Slide 13: Growth potential in South-eastern Europe
Growth potential in South-eastern Europe Electricity networks customers Electricity sales volumes per in m customer in %, basis: Lower Austria 2.0 100 1.605 100 1.5 80 80 1.0 60 54 0.803 0.720 40 0.5 20 0.0 0 EVN in Lower Austria EVN in Bulgaria EVN in Macedonia 13
Slide 14: Growth areas – Electricity generation in Albania
Growth areas – Electricity generation in Albania > 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 app
Slide 15: Growth Areas – Environmental Services in CEE
Growth Areas – Environmental Services in CEE > Drinking water, wastewater and waste incineration activities > Leveraging the experience gained in Lower Austria to expand into growth areas > Building, Operate, Own and Transfer (BOOT) model Drinking water plant in Moscow, Russia > Capacity: 250,000 m³
Slide 16: Growth Areas – Environmental Services in CEE
Growth Areas – Environmental Services in CEE Wastewater treatment plant in Istanbul, Turkey > Turn-key project and 5 year operation > Capacity: 2 million inhabitants > Start of operation: 2010 > Operation by EVN until 2015 Wastewater purification plant in Warsaw, Poland > Capacity modernisation and
Slide 17: Agenda
Agenda > EVN‘s strategy > Growth perspectives > Results Q. 1 2009/10 17
Slide 18: Highlights in Q1 2009/10
Highlights in Q. 1 2009/10 > Sales development in the Energy segment shaped by cold weather > Start-up of the district heating transmission pipeline to Sankt Pölten > Higher reliability of supply in the Lower Austrian electricity network > Concession agreement for natural gas distribution and supply
Slide 19: Financial highlights Q1 2009/10
Financial highlights Q. 1 2009/10 2009/10 Change > Increase in revenue EUR m Q. 1 % – Energy business: Higher sales volumes Revenue 769.2 4.5 – Environmental Services business: EBITDA 157.2 17.7 Increased business performance EBIT 95.1 8.3 > EBITDA and EBIT above last year‘s level Financial results
Slide 20: Electricity Generation segment
Electricity Generation segment 2009/10 Change > >Lower Electricity generation electricity below generation EUR m Q. 1 % last year‘s production – Reduced level at own thermal > Price power plants adjustments for electricity Revenue 42.7 17.0 and gas in November – Renewable energy: 2008 in EBIT 12.4 –
Slide 21: Network Infrastructure Austria segment
Network Infrastructure Austria segment 2009/10 Change > Network distribution volumes > Higher market prices pushed up EUR m Q. 1 % – Stable electricity distribution volumes revenue – Strong increase in gas volumes Revenue 135.6 8.0 > Lower volume of electricity > Network tariffs on basis of regulato
Slide 22: Energy Trade and Supply segment
Energy Trade and Supply segment 2009/10 Change > Increase of energy sales volumes to > end Network revenues: -6.4% to EUR customers EUR m Q. 1 % 104.1m – Electricity: stable volumes in Lower Revenue 370.3 6.1 Austria and higher volumes in other > Weather-related decreases in regions covered by Energ
Slide 23: Energy Supply South East Europe segment
Energy Supply South East Europe segment 2009/10 Change > Increase of electricity sales volumes EUR m Q. 1 % – In Bulgaria despite the mild weather – In Macedonia due to colder Revenue 225.8 3.1 temperatures EBIT 0.8 – > Revenue increase Financial results –5.3 42.6 – In Bulgaria only slight increase
Slide 24: Environmental Services segment
Environmental Services segment 2009/10 Change > Higher revenue from EUR m Q. 1 % – Ongoing operation of the waste incineration facility and water supply in Revenue 52.1 8.2 Austria – International project business EBIT 2.2 –25.4 > Increase in all operating expenses Financial results 4.2 – more than
Slide 25: Strategic investments
Strategic investments (EUR m) 8.0 > Stable income from at equity investments 7.5 – Income from RAG (before minority interests) decreased from EUR 11.7m to EUR 1.1m due to oil and gas price decline in Q. 4 2009 7.0 – Income from EconGas of EUR 3.5m slightly above the last year‘s level 6.5 – Higher ea
Slide 26: Balance sheet
Balance sheet alles 2009/10 Change > Slight decrease of balance EUR m Q. 1 % sheet total Balance sheet total 6,625.5 –1.0 > Slight decrease in equity – Lower market value of the Equity 3,070.3 –1.8 shareholding in Verbundgesellschaft Net debt 1,468.2 6.5 > Balance sheet structure Equity ratio (%) 46
Slide 27: Cash Flow
Cash Flow 2009/10 Change > Higher gross cash value EUR m Q. 1 % – Higher profit before income tax – Higher depreciation and Gross cash value 146.4 35.7 amortisation Operating CF –6.9 88.3 – Higher non-current provisions CF from investments –38.1 57.0 > Improvement in operating CF – Higher earnings C
Slide 28: Outlook
Outlook 2008/09 Forecast for 2009/10 vs. 2008/09 Revenue EUR 2,727.0m Above the previous year’s level EBIT EUR 175.2m Above the previous year’s level Financial results EUR 50.8m Above the previous year’s level Net profit EUR 177.9m Above the previous year’s level Continuation of EVN long-term Invest
Slide 29: 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 30: 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