Evn Ag · VIE:EVN
Evn — Investor Presentation (March 2023)
32 slides from Evn's investor presentation, March 2023
Slide 1: EVN – the company for energy, water and environmental services
EVN – the company for energy, water and environmental services March 2023
Slide 2: Agenda
Agenda EVN at a glance Business development (FY 2021/22) Back-up information Company presentation, March 2023 2
Slide 3: Integrated business model as basis for our value chain
Integrated business model as basis for our value chain Generation1) Networks1) Trade and Customers2) Environment Thermal (630 MW) Renewable (771 MW) Electricity supply Electricity (3.5m) Drinking water (148,961 km) supply Electricity Natural gas (0.3m) Natural gas Heating (0.1m) Wastewater Natural g
Slide 4: High share of regulated and stable business
High share of regulated and stable business EUR 754.8m ~78% of EBITDA from regulated and stable business in FY 2021/22 Regulated business in Lower Austria Electricity distribution networks Natural gas distribution networks Stable business in Lower Austria Wind generation 50% Water supply (1.
Slide 5: Strategy 2030 More sustainable. More digital.
Strategy 2030 ~80% of EBITDA from stable and >EUR 500m Integrated regulated activities annual investments business model Stable More sustainable. dividend policy Digitalisation More digital. of customer processes More efficient. Stable net debt EVN Climate Initiative Diversification (decarbonisation
Slide 6: EVN – the ESG stock
EVN – the ESG stock EVN climate initiative − Expansion targets for renewables until 2030 − CO2 reduction goals agreed with Science Based Targets initiative (SBTi) − Climate neutrality in selected subsidiaries (PAS 2060) Capex KPI: 85% (share of taxonomy- aligned investments) Improvements in ES
Slide 7: Expansion targets for renewables until 2030
Expansion targets for renewables until 2030 Targets for wind and PV (in MW) Projects under construction in 750 Lower Austria in 2023 − 3 wind parks (72 MW in total) 271 − 4 large-scale PV projects (48 MW in total) 2030 targets supported by strong 72 project pipeline − Wind power projects in Lo
Slide 8: EVN is #3 wind producer in Austria
EVN is #3 wind producer in Austria EVN’s renewable portfolio with Successful reduction of CO2 771 MW installed capacity1) footprint in electricity generation − Complete exit from coal-fired electricity generation as of 30 September 2021 − Natural gas-fired generation only used for network stabil
Slide 9: Sustaining high share of stable income from regulated network business
Sustaining high share of stable income from regulated network business High share of renewables in Lower Austria as major challenge for electricity networks − 53% of Austria’s installed wind capacity − 25% of Austria’s installed PV capacity Transformation to CO2-neutral energy system and e-mobil
Slide 10: Regulated business in Austria
Regulated business in Austria Network Electricity Natural gas Comments Regulatory authority E-Control GmbH E-Control GmbH Start of the regulatory period 01.01.2019 01.01.2023 Next regulatory adjustment 01.01.2024 01.01.2028 Adjustment of WACC and productivity factors Duration of the regulatory perio
Slide 11: Continuous efforts to achieve further operating improvements in SEE
Continuous efforts to achieve further operating improvements in SEE Ongoing reduction of grid losses Number of customers − Bulgaria: 1.8m − North Macedonia: 0.9m Commitment to supply security Investment strategy for SEE − Expansion and upgrading of network infrastructure to continuously redu
Slide 12: Drinking water business in Lower Austria – stable earnings contribution and future growth area
Drinking water business in Lower Austria – stable earnings contribution and future growth area Largest regional drinking water supplier − 0.6m drinking water customers − Supra-regional pipeline networks and local water supply networks − Operation of 5 natural filter plants to reduce the hardness o
Slide 13: International environmental projects further diversify EVN’s business mix
International environmental projects further diversify EVN’s business mix International project business − WTE Wassertechnik GmbH (Germany) − Planning and construction of plants for drinking water supplies, wastewater disposal and thermal waste incineration − Operation and financing (upon request)
Slide 14: Wastewater treatment project Umm Al Hayman (Kuwait)
Wastewater treatment project Umm Al Hayman (Kuwait) Wastewater treatment plant (PPP) − Capacity: 500,000 m3/d (~1.7m people) − EPC contractor: WTE (100%) − Contract value: ~EUR 600m − Stage of completion: 60%1) − Financing: equity2) (20%), bank debt (80%) Sewage infrastructure (DBO) − Pipes (450
Slide 15: Significant contribution to EVN‘s net profit from strategic investments
Significant contribution to EVN‘s net profit from strategic investments Verbund AG 12.63% − #1 electricity producer in Austria and EUR 46.1m1) #2 hydropower producer in Europe with 8.2 GW installed capacity 73.63% Burgenland Holding AG EUR 14.4m1) − Holds a 49% stake in Burgenland Energie (#1 gr
Slide 16: Key messages to our shareholders
Key messages to our shareholders High share of earnings from regulated and stable business Continuous strengthening and expansion of domestic regulated and stable activities − Networks, wind generation, heating, drinking water supply Active role in energy transition Sustainable company with
Slide 17: Outlook for 2022/23
Outlook for 2022/23 Group net result for 2022/23 is expected to range from roughly EUR 190m to EUR 250m − Under assumption of a stable regulatory environment, predictable energy sector and tax frameworks − Earnings contribution from Verbund AG for the 2022 financial year is initially not included
Slide 18: EVN share
EVN share Shareholder structure Dividend history 2021/22 2020/21 Dividend per share (EUR) 0.52 0.52 Payout ratio (%) 44.2 28.5 Dividend yield (%) 2.3 3.1 31.12.2022 30.09.2022 Share price (EUR) 16.90 17.04 Market capitalisation (EURm) 3,040 3,065 Member of the ATX According to federal and pr
Slide 19: Agenda
Agenda EVN at a glance Business development (FY 2021/22) Back-up information Company presentation, March 2023 19
Slide 20: Key financials
Key financials (FY 2021/22) Increase in revenue − High electricity prices as key driver − Price effects in networks business − Higher demand for gas-fired generation to support network stability − Growth from international project business Decline in EBITDA, EBIT and Group net result − High proc
Slide 21: Key energy business indicators
Key energy business indicators (FY 2021/22) 2021/22 +/– GWh % Decline in electricity generation Electricity generation volumes 3,365 -15.8 − Y-o-y increase in wind flows only partially Renewable energy sources 2,248 -1.5 offset lower water flows Thermal energy sources 1,117 -34.8 Network distribut
Slide 22: EBITDA development by segments
EBITDA development by segments (FY 2021/22) Segment 2020/21 +/– Comment EURm % Generation 292.9 11.6 Higher electricity prices offset decline in electricity generation Energy –26,7 – Lower earnings contribution from EVN KG due to higher procurement costs Positive price effects from tarif decisions o
Slide 23: Agenda
Agenda EVN at a glance Business development (FY 2021/22) Back-up information Company presentation, March 2023 23
Slide 24: Key financials
Key financials (Q. 1 2022/23) Increase in revenue − Price effects in renewable generation − Valuation effects of hedges and price adjustments in the Energy Segment − South East Europe benefitted from higher network tariffs and the increase of electricity prices in the regulated household customer
Slide 25: Solid balance sheet structure
Solid balance sheet structure (Q. 1 2022/23) Strong balance sheet as a basis for increased investment programme in the coming years (exceeding EUR 500m p.a.) Committed, undrawn credit facilities in the amount of EUR 636m as of 31.12.2022 Credit ratings: A1/stable (Moody’s), A+/stable (Scope) C
Slide 26: Structure of investments
Structure of investments1) (FY 2021/22) Investment strategy − Annual investments over the coming years >EUR 500m − Thereof approximately ¾ directed to networks, renewable generation and drinking water in Lower Austria 1) In intangible assets and property, plant and equipment Company presentation,
Slide 27: Dividend and financial policy
Dividend and financial policy Stable dividend policy − Hold the absolute amount of the dividend constant at a level of at least EUR 0.52 per share − Commitment to appropriate participation in future earnings growth Financial policy − EVN’s goal is to maintain solid A category ratings in the futu
Slide 28: Well-balanced maturity profile
Well-balanced maturity profile EUR 627m undrawn, committed credit lines (as of 30 September 2022) Company presentation, March 2023 28
Slide 29: Challenging market environment
Challenging market environment Source: EVN, March 2023 Company presentation, March 2023 29
Slide 30: RAG Austria AG
RAG Austria AG Shareholder structure − EVN AG (50.03%)1) − Uniper Exploration & Production GmbH (29.97%) − Energie Steiermark Kunden GmbH (10.00%) − Salzburg AG (10.00%) 100% of RAG earnings are recognised as share of profit of equity accounted Natural gas storage facility Haidach (Province of S
Slide 31: Contact details
Contact details Stefan Szyszkowitz, CEO Information on the internet − www.evn.at IR contact partners: − www.investor.evn.at − Gerald Reidinger − www.responsibility.evn.at − Matthias Neumüller − Karin Krammer Headquarters of EVN AG − Doris Lohwasser − EVN Platz 2344 Maria Enzersdorf IR cont
Slide 32: 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 expectation