EVN Company presentation · Bulgaria Macedonia Czech Republic Austria Germany EU-27 2008/09 2009/10...
Transcript of EVN Company presentation · Bulgaria Macedonia Czech Republic Austria Germany EU-27 2008/09 2009/10...
EVNCompany presentationMarch 2012
2
EVN at a glance
Investments and projects
Financial performance 2010/11
Financial performance Q. 1 2011/12
Agenda
3
Environmental
Services
14%
Energy Supply
SEE
18%
Energy Trade
and Supply
22%
Netw ork
Infrastructure
Austria
39%
Generation
7%Generation 3% Network
Infrastructure
Austria
16%
Energy Trade
and Supply 40%
Energy Supply
SEE
29%
Environmental
Services
12%
Profile
- Leading integrated Energy and Environmental Services company serving customers in Lower Austria, SEE and CEE
- Key business areas: electricity, gas, heating, drinking water supply, wastewater treatment, waste incineration
- Group net profit (2010/11): EUR 189.7m (–8.4%)
- Net cash flow from operating activities(2010/11): EUR 522.0m (+4.6%)
- Employees (2010/11): 8,250, ~70% abroad
- Rating: A3, stable (Moody’s)A–, negative (Standard & Poor’s)
Contribution by business segments
Key metrics (2010/11)
Generation
- Electricity generation capacity: 1,873 MW(thermal: 1,434 MW; renewable: 439 MW)
- Production mix: 77% thermal, 23% renewable
- Coverage ratio: 16.3%
Networks
- Electricity: 134,308 km
- Gas: 13,630 km
- Heating: 602 km
Energy supply
- Customers: 3.7 million
- Sales volume: 28.8 TWh
Environmental Services
- 0.5 million drinking water customers in Lower Austria
- Waste incineration plants of 500,000 tons p.a. in Lower Austria and 360,000 tons p.a. in Moscow
- More than 93 drinking and wastewater plants servicing about 14 million customers throughout Europe
Revenues1) EBITDA1)
1) Pre consolidation adjustments
EUR 2,729.2m EUR 471.4m
EVN at a glance
EVN at a glance
4EVN at a glance
EVN at a glance –active in 21 countries
Key geographic areas
- Lower Austria and Germany
- South Eastern Europe (SEE): Bulgaria, Macedonia, Croatia, Albania
- Central and Eastern Europe (CEE)
Activities
- Lower Austria:Energy business: full integrationEnvironmental services business: drinking water supply, wastewater treatment, waste incineration
- SEE:Electricity and heat distribution as well as gas operation (project)
- CEE: drinking water supply, wastewater treatment and waste incineration
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Business segments
Generation
- Production (2010/11): 3,000 GWh
- Efficient and flexible thermal fleet (coal, gas, oil)
- Sizeable renewable energy portfolio
- Projects in Albania and Bulgaria
Network Infrastructure Austria
- Electricity and gas distribution networks in Lower Austria
- Cable TV and telecommunication networks in Lower Austria and Burgenland
Energy Trade and Supply
- Sourcing of electricity and primary energy
- Sales to end customers in AT and GER
- Trading on wholesale markets
- Heat generation and sales in AT
- ~15–16 TWh sales volumes p.a.
Energy Supply South East Europe
- Electricity distribution and supply business in BG, MK
- ~13 TWh sales volume
- Heat generation and sales in Bulgaria
- Project to build/operate natural gas network in Croatia
Environmental Services
- AT: drinking water supply, wastewater treatment, waste incineration
- International project business: drinking water supply, wastewater treatment, waste incineration
- 16 Central and Eastern and SEE countries
Strategic Investments and Other Business
- VERBUND
- RAG
- Burgenland Holding
EVN at a glance
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EVN’s strategy –ongoing consolidation
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
Maintain market leadership in Austrian supply business
Enhance efficiency and profitability of regulated operations
- Maintain high level in Austria
- Continue improvements in SEE
Capitalise on environmental services business expertise and track record
EVN at a glance
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Implementation of strategic goals in 2010/11
EVN at a glance
Expansion of renewable energy in Lower Austria and abroad
- Acquisition of 13% of VERBUND Innkraftwerke GmbH in Bavaria
- New windparks in Lower Austria
- Capacity increase of existing small hydro power plants in Lower Austria
- Completion of EVN’s largest photovoltaic plant in Bulgaria
- Clear majority (70%) in the hydropower project “Gorna Arda” in Bulgaria
Key investments in security of supply
- Start of operation of the gas transportation pipeline “Südschiene” and construction begin of “Westschiene” in Lower Austria
- Construction begin of the gas grid expansion in Zadar, Croatia
- Start-up of the cogeneration plant in Plovdiv, Bulgaria
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Strengthening of liquidity position
EVN at a glance
Capital increase of EVN AG by 10% to EUR 330m
- Net proceeds of EUR 175.5m from capital increase
- Strengthening EVN’s balance sheet and supporting EVN’s credit rating
- Financing projects for expansion of renewable energy capacities in Lower Austria
Issuance of a corporate bond in October 2011
- EUR 300m
- Tenor: 10.5 years
- Coupon: 4.25%
Issuance of two private placements in March 2012
- EUR 100m and EUR 25m
- Tenor: 20 years
- Coupon: 4.125%
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77% 68% 68% 64% 64% 65%50%
23% 32% 32% 36% 36% 35%50%
0%
20%
40%
60%
80%
100%
05/06 06/07 07/08 08/09 09/10 10/11 long-
termConventional power generation Renewables
56.1%68.8%
39.5%29.2%
19.1% 17.8%
40%-
60%
16.3%20.8%
18.2%
0%
10%
20%
30%
40%
50%
60%
70%
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 long-
term
Generation mix
Coverage ratio
Market entranceBulgaria
Market entranceMacedonia
EVN at a glance
Increase coverage ratio and diversify generation portfolio
Increase coverage ratio long-term to 40%–60% on Group level
- Hold coverage ratio in CWE
- Increase coverage ratio in SEE
Diversify generation portfolio
- Increase renewable generation up to 50% of output
- Focus on wind in Austria and CWE
- Focus on hydro in SEE
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EVN – an attractiveinvestment opportunity
1 Growing portfolio of high quality generation assets
More than 60% of revenues and more than 80% of EBITDA from stable core Austrian business
Upside potential in SEE region
Diversified business model through integration of environmental services business
Strategic investments in VERBUND and RAG strengthen internal energy hedge
Solid capital structure and credit rating support
2
3
4
5
6
EVN at a glance
11
Ongoing projects to double generation output by 2020
Selected current generation projects
1
1.000
1.4101.583 1.608 1.692 1.820
192
2.746
1.873
53
12884
25173
410
2.845
119
Status quo
2010/11
Walsum
(f inanced)
Wind parks
(partly f inanced)
Ashta Gorna Arda Devoll Others
(Pro
-rata
insta
lled c
apacity
, M
W)
1) 2)
Project Walsum Wind parks 1) Ashta Gorna Arda Devoll Others 2)
Fuel type Hard coal Wind Hydro Hydro Hydro Various
Pro-rata investment (EURm) 402 173 105 350 400 n/a
Expected COD 2013 2011/13 2013 2019 2016/19 n/a
1) Includes Austrian wind parks as well as Kavarna wind park 2) Contains smaller hydro power plants in Austria, cogeneration power plant in Plovdiv, Bulgaria
EVN at a glance
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Majority of revenues and EBITDA generated in domestic and regulated businesses
2
Generation 3% Network
Infrastructure
Austria
16%
Energy Trade
and Supply 40%
Energy Supply
SEE
29%
Environmental
Services
12%
1) Pre consolidation adjustments2) International business includes Energy Supply South East Europe and the international project business of the Environmental Services Segment
3) The regulated domestic business includes mainly the Network Infrastructure Austria (excl. cable and telecom activities) and the regulated international business
Energy Supply South East Europe
Revenue breakdown by segments 2010/111) Geographic revenue breakdown2)
Share of regulated EBITDA3) Geographic EBITDA breakdown2)
62% 62% 60%
38% 38% 40%
2,727.0 2,752.1 2,729.2
0
500
1,000
1,500
2,000
2,500
3,000
08/09 09/10 10/11
Austria International
80% 79% 76%
20%21%
24%373.4416.6
471.4
0
100
200
300
400
500
08/09 09/10 10/11
Austria International
EU
Rm
EU
Rm
47% 44% 46%
18% 17%18%
35%
39%35%
471.4
416.6373.3
0
50
100
150
200
250
300
350
400
450
500
08/09 09/10 10/11
EU
Rm
Unregulated business Regulated international business Regulated domestic business
EVN at a glance
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Regulated business in Austria
50% of the efficiency gains during one regulatory period are passed on to end customers.
Network Electricity Gas Comments
Reset date
(Regulatory period length)
1 Jan 2014
(4 years)
1 Jan 2013
(5 years)
Next reset of WACC and X factor
RAB (EUR m) Not public Not public Capex retrospectively monitored each year
WACC (pre-tax, nominal) 7.0% 7.0% Set for length of regulatory period
X factor – sector (Xgen) 1.95% 1.95% X factor the same for all companies
X factor – company specific 0.25% 0.00% Additional X factor is company specific
Inflation Set annually Set annually Network Operator Price Index
2
Source: E-Control 2010, company information
EVN at a glance
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Regulated business in South Eastern Europe
EVN buys energy from public provider at regulated prices and sells to end-customers at regulated prices
Bulgaria:
- 1/3 of electricity market
- District heating plant in Plovdiv
Macedonia:
- Entire electricity distribution network run by EVN
Croatia:
- Project to build and operate natural gas network in Zadar, Sibenik and Split
- Customer potential: 130,000 households
Plovdiv
Skopje
BulgariaMarket entry in 2005
Macedonia Market entry in 2006
2
EVN at a glance
15
0
5
10
15
20
25
Bulg
aria
Macedonia
Czech
Republic
Austr
ia
Germ
any
EU
-27
2008/09 2009/10 2010/11
Upside potential from SEE market development
3
17%15% 14% 13% 13% 12% 12%
24%22% 21%
17% 16%18%
04/05 05/06 06/07 07/08 08/09 09/10 10/11
Grid losses, BG Grid losses, M K
54
80
100
0
20
40
60
80
100
120
EV
N in
Bu
lgari
a
EV
N in
M
aced
onia
EV
N in L
ow
er
Austr
ia
Improvement of grid efficiency (%)
Upside
potential
1) In %, basis: Lower Austria = 100%
Illustrative electricity sales volumes per customer (%)1)
Electricity prices for households (EUR cent/kWh)
EVN at a glance
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Successful participation in 93 projects in 16 countries since 1983
Strong demand for infrastructure projects set to continue
Contract volume of EUR 1.3bn with attractive return potential from international projects
Underpinned by stable contributions from drinking water supply and wastewater treatment businesses
4
EVN at a glance
Competitive business model through integration of environmental services business
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Internal hedge from investments5
12.63% 50.03% 73.63%
- #1 electricity producer in
Austria with 8.6 GW installed
capacity
- Current Mcap of ~EUR 7.8bn
- Historical payout ratio ~50%
- #2 oil and gas producer in AT
- One of the largest gas
storage operators in Central
Europe with 5 bn m³ working
gas capacity
- #1 green energy producer in
Austria with 242 MW
installed capacity
- Increasing wind energy
capacity by 270 MW in the
next 5 years
49.0% 49.0%
Strengthen vertical integration
Financial exposure to generation and upstream gas
Financial hedge against increasing input energy costs
Regional expansion and contribution to EVN’s profitability
EVN at a glance
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32.2
44.3
60.4
-3.4 -3.1
9.4
42.1
50.1
22.123.1
25.0
-2.5
94.0
116.3
89.4
-10
10
30
50
70
90
110
130
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EU
Rm_
RAG BEWAG, BEGAS VERBUND Others
Strategic investments provide a significant contribution to EVN’sprofit
- RAG and VERBUND are the main contributors
- Income from RAG increased by 36% from EUR 44.3m in 2009/10 to EUR 60.4m in 2010/11
- Contribution from VERBUND decreased due to lower dividend payment in 2010/11
- Contribution from Others decreased due to impairment for the hydropower project Ashta (EUR –21.3m)
5
EVN at a glance
Substantial contribution to net profit from investments
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0.370.40 0.41
33.9% 34.7% 38.5%
0.0
0.1
0.2
0.3
0.4
0.5
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EU
R
0%
20%
40%
60%
80%
100%
Pa
yo
ut ra
tio
Dividend per share Payout ratio
Rating
S&P: A– / negative
Moody’s: A3 / stable
EVN aims at preserving a competitive investment grade credit rating
Increase in net debt and gearing ratio due to ongoing investments in Austria and SEE
Net debt can be easily covered by financial assets available for sale
Financial policy going forward based on selected key ratios (on an unadjusted basis):
- Equity ratio >40% (30.9.2011: 46.2%)
- Net debt coverage (FFO) ≥ 25% (30.9.2011: 38.2%)
- Interest cover (FFO) ≥ 5x (30.9.2011: 7.6x)
- EVN intends to increase its dividend payout ratio up to 40% mid-term and to above 40% longer-term
Dividend per share
1,378.21,458.2
1,579.2
44.1%48.2%
49.7%
0
200
400
600
800
1,000
1,200
1,400
1,600
08/09 09/10 10/11
EU
Rm
_
0%
20%
40%
60%
80%
100%
Ge
ari
ng
(%
)
Net financial debt Gearing
6
EVN at a glance
Solid capital structure and rating supports
20
Debt maturity profile
Redemption of EUR bond with nominal value of EUR 257.4m on December 14thth, 2011
Share of fixed interest debt as of March 31th, 2012: 76%
Average financing costs: 4.2%
Financial flexibility:
- Syndicated loan EUR 600m (undrawn); maturity 2013
- Committed bilateral credit lines of EUR 175m
6
EVN at a glance
82 125184
97
517235
733
82125
419
97
1,250
0
200
400
600
800
1,000
1,200
1,400
11/12 12/13 13/14 14/15 >2015
EU
Rm_
_
Bank debt Bonds
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Outlook 2011/12
Assumptions
- Stable end customers businessdevelopment
- Lower or negative spreads betweenprimary energy and electricity prices
- Stable order book in EnvironmentalServices segment and no negative impact due to economic downturn
EVN‘s expectations
- Revenue and operating results to remain stable
- Financial results to exceed previous year’s level
- Group net profit comparable to prior-year level
EVN‘s ambitions
- Competitive investment grade credit rating
- Attractive dividend policy
- Key ratios (on an adjusted basis): Equity ratio: >40%Net debt coverage (FFO): >25%Interest cover (FFO): >5x
EVN at a glance
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Financial figures
35.3%
1,131.3
48.3%
3,208.5
6,636.3
415.6
382.6
186.9
362.3
2,397.0
2007/08
48.2%
1,458.2
44.9%
3,025.3
6,731.2
394.0
499.3
207.0
416.6
2,752.1
2009/10
49.7%
1,579.2
46.2%
3,176.0
6,870.4
415.7
522.0
189.7
471.4
2,729.2
2010/11
27.4%
825.3
48.1%
3,014.7
6,261.9
277.7
342.8
227.0
350.7
2,233.1
2006/07
44.1%
1,378.2
46.7%
3,127.2
6,695.4
415.7
335.3
177.9
373.4
2,727.0
2008/09
Gearing
Net debt
Equity ratio
Equity
Balance sheet total
Investments1)
Net cash flow fromoperating activities
Group net profit
EBITDA
Revenue
EURm
1) In intangible assets and property, plant and equipment
EVN at a glance
23
EVN at a glance
Investments and projects
Financial performance 2010/11
Financial performance Q. 1 2011/12
Agenda
24
63.4 48.970.8
161.5156.5
160.9
32.5
21.5
25.3
104.8
100.7
112.5
67.4
68.6
48.3
415.7
394.0
415.7
0
50
100
150
200
250
300
350
400
450
500
08/09 09/10 10/11
EU
Rm_
Environmental Services
Energy Supply South East Europe
Energy Trade and Supply
Netw ork Infrastructure Austria
Generation
1) In intangible assets and property, plant and equipment
Investments and projects
Investments 2010/111)
Investments up 5.5%
Key investments
- Generation:Wind power and small-scale hydro power projects in Lower Austria
- Network Infrastructure Austria:Construction of the natural gas transportpipelines „Süd- and Westschiene“
- Energy Trade and Supply:Expansion of heating networks
- Energy Supply South East Europe:Expansion of the network infrastructure and replacement of metersConstruction of the new cogeneration plant in Plovdiv
- Environmental Services:Combined cycle heat and power cogeneration plant in Moscow
25
Strategy to double wind capacity by 2015
Austrian Green Electricity Act
Legal framework until 2011 Amendment 2012
> Off-take obligation for new plants at fixed feed-in tariffs (13 years)
> Eligibility of new renewables projects is subject to annual feed-in tariff constraints
� Annual constraints too low in the past, creating substantial backlog of ready-to-build projects in Austria
Eastern part of Lower Austria =
Attractive on-shore wind region
> One of the most attractive regions in Europe (due to strong wind conditions in the plain Danube and Pannonianarea)
> “Lower Austrian Renewables Roadmap 2030”
� Increase wind generation capacities in Lower Austria from 550 MW to 1,900 MW (2020) and 3,200 MW (2030)
> Legal goal to increase Austrian wind generation capacities from 1,011 MW to 2,000 MW (2020)
> Increase of annual feed-in tariff constraints to reduce backlog and achieve capacity growth
> Attractive wind feed-in tariffs 2012: EUR 95/MWh
> EVN’s focus on Lower Austria
> 163 MW installed capacities
> Strong negotiating powervis-à-vis turbine suppliers
> Wind park IRR (after tax) 7%–8%
� Generate stable, regulatedcash flows on a long-term basis
Investments and projects
26
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)
- Kettlasbrunn (20 wind turbines)
- Obritzberg (13 wind turbines)
- Markgrafneusiedl (9 wind turbines)
- Tattendorf (8 wind turbines)
- Pöttelsdorf (4 wind turbines)
Windpark project Glinzendorf
- Total capacity: 18 MW (9 wind turbines)
- Total investments: EUR 27m
Total capacity: 163 MW
- As of September 30th, 2011: 138 MW
Electricity for 100,000 households
Investments and projects
27
Hydropower plantsin Lower Austria
River Inn
- 13% stake in VERBUND-InnkraftwerkeGmbH
- Capacity: 41 MW (EVN stake)
Schütt
- Capacity: 2 MW
- 2,700 households
- Investments: EUR 9.5m
Schaldorf
- Capacity: 1 MW
- 1,500 households
- Completion: Spring 2012
© VERBUND
Investments and projects
VERBUND-Innkraftwerke
28
Hydropower plant projectsin 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: 2013
Project Devoll
- 50:50 JV with Statkraft (Norway)
- 3 hydropower plants
- Capacity: 275 MW
- Generation: ~800 GWh p.a.
- Concession period: min. 35 years
- Start of operations: 2016/19
Investments and projects
Project Ashta on the Drin River
29
29
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 500m
- Start of operations: 2019
Investments and projects
Hydropower plant project in Bulgaria
30
Photovoltaic plants in Bulgaria
Blatets
- Start of operations: May 2010
- Total capacity: 836.7 kWp
- Investments: EUR 3m
- CO2 savings: 280 t p.a.
Trastikovo
- Start of operations: July 2011
- EVN‘s largest photovoltaic park
- ~25,000 modules
- Total capacity: 1,995 kWp
- Generation: ~2.4 GWh p.a.
- Investments: EUR 5m
- CO2 savings: 2,000 t p.a.
Investments and projects
31
Cogeneration plantin 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 modern cogeneration plant in the Balkans
- Increasing the security of energy supplies
Investments and projects
32
Gas supplyin Lower Austria
„Südschiene“
- Gänserndorf-Semmering
- Completion: July 2011
- Gas pipeline: ~120 km
- Investments: EUR 114m
„Westschiene“
- Auersthal-Amstetten
- Start of construction: June 2011
- Completion: ~September 2013
- Gas pipeline: ~150 km
- Investments: EUR 150m
Investments and projects
33
Gas supplyin Croatia
Concessions to build and operatea natural gas distribution networkon the Dalmatian coast
- Three counties: Zadar, Split and Sibenik
- Concession period: 30 years
- Total pipeline length: 1,450 km
- ~130,000 households
- Start of construction: April 2011 (Zadar)
Investments and projects
34
Waste incineration plants
Dürnrohr, Lower Austria
- Line 3
- Start of operation: early 2010
- Total capacity: 500,000 t p.a. of household residual waste, bulky waste, industrial and commercial waste materials treated
- State-of-the-art and largest waste incineration plant in Europe
- Ecologically best possible waste treatment and transportation of waste and residual waste by train
Moscow
- Total capacity: 360,000 t p.a.
- Investments: EUR 175m
- Start of operation: 2008
- EVN operation: 13 years
Investments and projects
35
Waste incineration plant project
Moscow
- December 2009: Acceptance of a tender to construct another wastetreatment plant in Moscow
- Total capacity: 700,000 t p.a.
- Investments: EUR 575m
- Start of operations: 2014
Investments and projects
36
EVN at a glance
Investments and projects
Financial performance 2010/11
Financial performance Q. 1 2011/12
Agenda
37
Business achievements 2010/11
Financial performance 2010/11
Stronger positioning in renewable energy
- Acquisition of a 13% stake in VERBUND-Innkraftwerke GmbH
- Revitalisation of the Schütt small-scale hydropower plant in Lower Austria
- Two new wind parks in Lower Austria
- New photovoltaic plant in Trastikovo, Bulgaria
- Clear majority (70%) in the hydropower project “Gorna Arda”, Bulgaria
Natural gas transport pipeline “Südschiene” put into operation
Construction start for the “Westschiene” in Lower Austria
Construction begin on gas network in Zadar, Croatia
Advanced cooperation between the Macedonian government and EVN
Environmental Services segment acquired first project in Romania
38
Development of electricity and primary energy prices
Increase in electricity and primary energy prices
- Ongoing strong demand in Asian in first half of 2011
- Political turmoil in North Africa and Middle East
- Nuclear disaster in Fukushima and German decision to exit nuclear power by 2022
Electricity prices have not increased as much as primary energy prices
0
10
20
30
40
50
60
70
80
90
2005 2006 2007 2008 2009 2010 2011 2012 2013
energy prices
in EUR/MWh
forward
coal
gas procurement
crude oil
electricity (base)
Financial performance 2010/11
39
Group results 2010/11Revenue drop in the energybusiness offset by positive development in EnvironmentalServices segment
Higher EBIT due to one-offs
Negative development in financialresults
- Lower dividend paid by VERBUND
- Decline in interest and other financialresults
Strong cash flow generation
Decrease of earnings per share
- Lower Group net profit
- Increased number of outstandingshares following the capital increase
Higher dividend payout ratio2.50.41Dividend per share
EUR
–16.11.07Earnings per share
– 8.4 189.7Group net profit
4.6522.0Net cash flow fromoperating activities
–50.041.8Financial results
16.8218.7EBIT
13.2471.4EBITDA
–0.82,729.2Revenue
Change in %2010/11EURm
Financial performance 2010/11
40
Asset impairments 2010/11
+31.22. Procurement rights at hydropower plants
–38.41. Gas-fired power plants
–10.7–29.1Effects in operating results
–23.15. Hydropower project Ashta
–23.1Effects in financial results
–10.7–4.24. Others
–17.73. TEZ Plovdiv / Gas power plant side in Plovdiv
2009/102010/11Impairment tests, EURm Assumptions used at impairment tests:
- High gas sourcing costs from long-term supply contracts and the elimination of free CO2 certificatesas of 2013
- Hydropower plants are gaining importance
- Ongoing adverse regulation in the Bulgarian heating business
- Delay in liberalising the Bulgarian market and postponed plans to construct a gas-fired power plant
- Lower expectations on proceeds from the sale of Certified Emission Reductions
Financial performance 2010/11
41
EBITDA development by segments
Generation: falling spreads between electricity and primary energy prices
Energy Trade and Supply: positiv economic development and one-off effects due to the use of provisions from previous year for impending losses
Environmental Services: higher or first-time earnings contribution of new projects
84,2
52,5
32,1 33,4
57,3
103,9
64,9 69,0
86,8
159,1
191,4 190,4
68,952,342,0 54,8
46,545,1
10,4%
57,6%44,3%
33,1%
2,8%4,8%
8,9%7,4% 8,0%
34,0%
39,1% 39,8%
17,0% 18,3% 19,9%
0
20
40
60
80
100
120
140
160
180
200
220
08/09 09/10 10/11 08/09 09/10 10/11 08/09 09/10 10/11 08/09 09/10 10/11 08/09 09/10 10/11
EU
Rm_
0%
10%
20%
30%
40%
50%
60%
Marg
in (
%)
EBITDA PBT EBITDA Margin
Generation EnvironmentalServices
Energy Trade and Supply
Network Infrastructure Austria
Energy Supply South East Europe
Financial performance 2010/11
42
Generation
–18.297.1Revenue
–8.51,998thereof thermal energy sources
–10.41,002thereof renewable energy sources
–9.23,000Total
–38.932.1EBITDA
––3.6EBIT
EURm
Change in %2010/11Electricity generation
volumes (GWh)
Decrease in energy generation volumes
- Lower power generating volumes at EVN‘s own thermal power stations
- Lower water flow conditions
Revenue and EBIT drop
- Declining spreads between electricity and primary energy prices in option value of power stations
- Impairments:
EUR –38.4m Theiß and Korneuburg
EUR +31.2m revaluation of purchase rights at hydropower plant Freudenau
Financial performance 2010/11
43
Energy Trade and Supply
+8.9%(4/1/2011)
–7.0%Gas (12/1/2009)
End customer price adjustments1)
6.91,678Heat
–3.96,475Natural gas
1.87,143Electricity
EURm
81.5103.9EBITDA
–88.8EBIT
–1.91,164.3Revenue
Change in %2010/11Sales volumes to end
customers (GWh)
1) Average, household sector (EVN Source)
Higher sales volumes to end customers
- Electricity: economic upswing and expansion of EnergieAllianz outsideAustria
- Heat: higher sales of steam and heatto key accounts
Decrease in revenue despitehigher sales volumes
- Adjustment in gas prices for end customers
- Decrease in marketing proceeds frompower plants
EBITDA and EBIT increase
- Lower primary energy costs due to:
- One-off effects due to usage of provisions for impending losses
- Reduced purchasing volumesbecause of reduced operation of ownpower plants
Financial performance 2010/11
44
Energy SupplySouth East Europe
+4.9%(3/1/2011)
+5.1%Macedonia (1/1/2010)
+1.9%(7/1/2011)
+2.0%Bulgaria (7/1/2010)
Electricity price adjustments1)
EURm
1.613,396Electricity
–7.9233Heat
25.886.8EBITDA
12.79.7EBIT
–3.2834.3Revenue
Change in %2010/11Network distribution
volumes (GWh)
1) Average, household sector, according to the regulators in Bulgaria
(SEWRC) and Macedonia (ERC)
Sales volumes development
- Higher electricity sales volumes in Bulgaria and Macedonia
Revenue decrease
- Bulgaria: mainly due to changed reporting of tariff components (effect: EUR 46.9m)
- Macedonia: higher sales volumes and positive price effects in 2010 and 2011
Decrease in operating expenses
- Changed reporting of procurement costs in Bulgaria and usage of provisions for impending losses in Bulgaria
- Lower personnel expenses and write-offs of receivables in Macedonia
EBIT improvement despite
- Impairment of goodwill at TEZ Plovdiv and impairment of property, plant and equipment of the Plovdiv power plant site totaling EUR 17.7m
Financial performance 2010/11
45
Network InfrastructureAustria
+10.6%Gas (1/1/2011)
+1.0%Electricity (1/1/2011)
Tariffs adjustments1)
–11.416,415Natural gas2)
2.47,754Electricity
EURm
–0.5190.4EBITDA
–3.291.7EBIT
–2.1478.8Revenue
Change in %2010/11Network distribution
volumes (GWh)
1) Including network sales to EVN‘s power stations
2) Average, according to the regulator in Austria, E-Control
Diverse network distribution volumes
- Electricity distribution volumes: increase due to economic upswing in the first half-year 2010/11
- Gas distribution volumes: decrease despite cold weather due to lower sales to EVN‘s own thermal power stations
Decrease of EBITDA and EBIT
- Higher cost of materials
- Higher depreciation
Financial performance 2010/11
46
Environmental Services
Revenue increase due to higher or first-time full year earnings contribution of projects
- Waste incineration plant and sodium hypochlorite plant in Moscow
Strong EBITDA and EBIT increase
New business
- Concession for wastewater treatment in Slovenia
31.868.9EBITDA
EUR bn
1.3Contract value1)
17.854.8Profit before income tax
53.242.9EBIT
21.6346.9Revenue
Change in %2010/11EURm
1) As of September 30th, 2011
Financial performance 2010/11
47
26.6
54.7
47.4
62.9
61.6
46.7
-6.5
-0.8
-4.7 -38.5
-41.1
-31.9
41.8
83.6
50.8
-50 -30 -10 10 30 50 70 90 110 130 150
1
2
3
EURm_
Gain from other investments
Income from investments in equity accounted investees
Total interest results
Total other financial results
Financial results 2010/11
2008/09
2009/10
2010/11
Financial results dropped by 50%
Earnings contribution frominvestments fell
- Higher results from investments in equity accounted investees:
RAG:up from EUR 44.3m to EUR 60.4m
BEWAG/BEGAS:up from EUR –3.1m to EUR 9.4m
Impairment for hydropower projectAshta (EUR –21.3m)
- Lower gain from other investments
VERBUND AG: drop by EUR 28.7m to EUR 22.1m
Drop in total interest results
- Higher level of financial liabilities
- Higher interest rates
Financial performance 2010/11
48
Balance sheet
Increase of total assets
- Increase in equity accounted investees
13%-stake VERBUND-Innkraftwerke
Contribution to capital increase of VERBUND AG
Increase in net debt
- Slightly higher gearing but within EVN framework to maintain competitive investment grade
88.5% 11.5%
Non-current assets Current assets
1) Compared to September 30th, 2010
1.3p46.2Equity ratio (in %)
1.5p49.7Gearing (in %)
8.31,579.2Net debt
5.03,176.0Equity
2.16,870.4Total assets
Change in %
1)2010/11EURm
46.2% 39.5% 14.3%
Equity Non-current liabilities Current liabilities
Financial performance 2010/11
49
1,458.2
1,378.2
1,579.2
-175.5105.4
676.1-478.1 -7.0
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
30.9.2009 30.9.2010 Gross cash flow Working Capital,
Taxes, Others
Investments Dividends Capital increase 30.9.2011
EU
Rm
_
Net debt development
Financial performance 2010/11
50
Cash flowHigher gross CF
- Lower profit before income tax
- Higher depreciation and amortisation
- Lower non-cash income from investments in equity accounted investees
- Lower non-current provisions
Increase of net CF from operating activities
- Decrease of current balance sheet items
- Higher net cash outflow from investing activities and liabilities
Decrease of net CF from investing activities
- Decrease of current securities
- Higher capital payment for investments in equity accounted investees
- Increase in lease receivables in the Environmental Services segment
Decrease of net CF from financing activities
- Redemption of liabilities
- Despite net proceeds of capital increase
–23.5Net change in cashand cash items
–77.113.1Net cash flow from financing activities
–11.9–511.6Net cash flow from investing activities
4.6522.0Net cash flow from operating activities
2.2478.1Gross cash flow
Change in %2010/11EURm
415.7
394.0
478.1
467.7
0 100 200 300 400 500
10/11
09/10
EURm__
Gross cash flow
Investments in property, plant and equipment and intangible assets
Financial performance 2010/11
51
EVN at a glance
Investments and projects
Financial performance 2010/11
Financial performance Q. 1 2011/12
Agenda
52
Investment focus on wind energy in Lower Austria
- Capacity increase by 15% to 163 MW; supply of 100,000 households
Start of construction for a biomass district heating plant in Steyr
Completion of the first construction stage of „Westschiene“
Aquisition of additional shareholdings in the two Bulgarian subsidiaries
- EVN currently holds more than 99% respectively
Contract award in Prague in the Environmental Services segment
- EVN operates now in 21 countries
Issuance of a new bond
- EUR 300m
- Tenor: 10.5 years
- Fixed coupon: 4.25%
Business highlights
Financial performance Q. 1 2011/12
53
Business development
Weather-related revenue development
- Energy business: increase
- Environmental services business: decrease
Higher EBITDA
- Operating expenses up 2.8%
Stable EBIT
- Impairment loss of EUR 8.0m
Positive development of financial results
- Higher income from investments in equity accounted investees
Weather-related decrease of net CF from operating results
6.617.3Financial results
0.7104.7EBIT
5.8167.6EBITDA
–69.225.9Net cash flow from operating activities
–1.60.50Earnings per share
EUR
1.889.5Group net profit
3.4829.7Revenue
Change in %
2011/12Q. 1EURm
Business development
Financial performance Q. 1 2011/12
54
EBITDA development by segments
Generation: power request on the part of the German Federal Network Agency
Energy Supply South East Europe: weather-related sales volumes increase and higher end customer prices
Network Infrastructure Austria: higher maintenance costs
Financial performance Q. 1 2011/12
Generation EnvironmentalServices
Energy Trade and Supply
Network Infrastructure Austria
Energy Supply South East Europe
6.016.7
14.4
68.8
74.2
63.7
22.8
12.516.2
44.045.042.3
18.3
11.9
28.5
6.3
11.88.7
17.1%16.6%
11.5%
46.7%
53.0%
47.0%
6.1%7.2%
11.8%12.2%11.4%
52.9%41.6%
66.7%
9.3%
0
20
40
60
80
Q. 1
09/10
Q. 1
10/11
Q. 1
11/12
Q. 1
09/10
Q. 1
10/11
Q. 1
11/12
Q. 1
09/10
Q. 1
10/11
Q. 1
11/12
Q. 1
09/10
Q. 1
10/11
Q. 1
11/12
Q. 1
09/10
Q. 1
10/11
Q. 1
11/12
EU
Rm_
0%
10%
20%
30%
40%
50%
60%
70%
Marg
in(%
)
EBITDA Profit before tax EBITDA Margin
55
Generation
21.134.6Revenue
–34.7547thereof thermal energy sources
–0.4253thereof renewable energy sources
–26.8800Total
53.218.3EBITDA
–35.13.9EBIT
EURm
Change in %
2011/12 Q. 1
Electricity generationvolumes (GWh)
Decline of power generation
- Negative spark spreads
- Lower water flow conditions
Revenue increase
- Power request by the German Federal Network Agency
- Revision in natural gas prices between Gazprom and EconGas
EBIT drop
- Impairment loss on the biomass pilot plant in Dürnrohr of EUR 8.0m
Financial performance Q. 1 2011/12
56
Energy Trade and Supply
+3.6%(10/1/2011)
+8.9%Gas (4/1/2011)
End customer price adjustments1)
2.9572Heat
–11.02,296Natural gas
–2.21,908Electricity
EURm
–2.244.0EBITDA
–2.840.6EBIT
0.8371.9Revenue
Change in %
2011/12 Q. 1
Sales volumes to end customers (GWh)
1) Average, household sector (EVN source)
Weather-related lower salesvolumes to end customers
- Natural gas: reduced use of EVN‘sown thermal power plants
Revenue increase
- Adjustment in natural gas prices
- Initial consolidation of first facilityGmbH
EBITDA and EBIT decrease
- Higher procurement costs
- Increased cost of materials
Financial performance Q. 1 2011/12
57
Network InfrastructureAustria
+10.6%Natural Gas (1/1/2011)
+1.0%Electricity (1/1/2011)
Tariffs adjustments1)
–16.55,216Natural gas2)
0.22,051Electricity
EURm
–7.268.8EBITDA
–10.844.8EBIT
5.3147.4Revenue
Change in %
2011/12Q. 1
Network distribution volumes (GWh)
1) Average, according to the regulator in Austria, E-Control
2) Including network sales to EVN‘s power stations
Diverse distribution sales volumes
- Electricity: at the prior-year level
- Natural gas: reduced use of EVN’sown thermal power plants
Adjustment of network tariffs
Decrease of EBITDA and EBIT
- Higher maintenance costs
Financial performance Q. 1 2011/12
58
Energy SupplySouth East Europe
+4.9% 2)(3/1/2011)
+5.1% 2)Macedonia (1/1/2010)
+1.9%(7/1/2011)
+2.0%Bulgaria (7/1/2010)
Electricity price adjustments1)
EURm
9.23,711Electricity
13.186Heat
82.722.8EBITDA
–8.3EBIT
20.0246.2Revenue
Change in %
2011/12 Q. 1
Network distribution volumes (GWh)
1) Average, household sector, according to the regulators in
Bulgaria (SEWRC) and Macedonia (ERC)
2) EVN Macedonia
Temperature-related sales volumes increase
- BG: heating degree +38.8%p
- MK: heating degree +34.3%p
Revenue increase
- Weather-related hike of sales volumes
- Electricity price adjustments
EBITDA doubled
Increase of EBIT from EUR –2.5m despite
- Higher prices for procured energy
- Increased write-off of receivables
- Higher personnel expenses
Financial performance Q. 1 2011/12
59
Environmental Services
Weather-driven revenue decline
EBITDA and EBIT drop
Financial results down
- Decreasing interest balance of projects during the operational phase
- Higher interest expense of projects during the construction phase
New market entry
- Concession for wastewater treatment plant in Prague
–32.40.8Financial results
–13.814.4EBITDA
–26.48.7Profit before income tax
–25.77.8EBIT
–16.584.1Revenue
Change in %
2011/12 Q. 1EURm
Financial performance Q. 1 2011/12
60
Financial results
Financial results increased
Higher income from investments in equity accounted investees
- EconGas: EUR 8.5m, + EUR 3.1m
- BEWAG/BEGAS: EUR 4.0m,+ EUR 3.3m
Higher interest expense
- Issuance of a new Eurobond
- Higher net debt
- Slightly higher interest rates
-
-
-
7.6
26.7
32.4
-7.0
-9.4
-13.2
2.9
-1.2
-2.0
3.6
16.2
17.3
-20 -10 0 10 20 30 40
Q. 1 09/10
Q. 1 10/11
Q. 1 11/12
EU
Rm_
Income from investments in equity accounted investeesTotal interest resultsTotal other f inancial results
Financial performance Q. 1 2011/12
61
Balance sheet
Increase of total assets
- Increase in equity accounted investees: higher earnings and capital contribution for projects and new investments
- Seasonally-related increase in receivables
Stable and high equity ratio
Increase in net debt
- Despite higher gearing EVN has competitive investment grade
1) Compared to September 30th, 2011
–0.3p45.9Equity ratio (in %)
4.1p53.8Gearing (in %)
9.21,724.4Net debt
1.03,206.5Equity
1.76,985.0Total assets
Change in %
1)2011/12
Q. 1EURm
88.0% 12.0%
Non-current asset Current asset
45.9% 42.7% 11.4%
Equity Non-current liabilities Current liabilities
Financial performance Q. 1 2011/12
62
Cash flow
Higher gross CF
- Higher depreciation and amortisation
- Higher level of non-current provisions
Decrease of net CF from operating activities
- Weather-related increase in working capital
Increase of net CF from investing activities
- Capital payment for investments in equity accounted investees
- Acquisition of additional stake in EVN’sBulgarian subsidiaries
- Increase in lease receivables
Decrease of net CF from financing activities
- Capital increase in prior-year period
–53.769.4Net change in cashand cash items
–82.729.2Net cash flow from financing activities
48.7–98.2Net cash flow from investing activities
–69.225.9Net cash flow from operating activities
6.8149.5Gross cash flow
Change in %
2011/12 Q. 1EURm
76.0
74.7
149.5
139.9
0 100
Q. 1 11/12
Q. 1 10/11
EURm__
Gross cash f low
Investments in intangible assets, property, plant and equipment
Financial performance Q. 1 2011/12
63
1) In intangible assets and property, plant and equipment
Investments1)
Investments up 1.7%
Key investments
- Wind parks in Lower Austria
- Construction of „Westschiene“
- Expansion of heating networks in LowerAustria
- Cogeneration plant in Plovdiv, Bulgaria
- Cogeneration plant in Ljuberzy, Moscow
5.3 3.1
20.219.5
2.73.8
30.0
41.3
16.1
6.3
74.7 76.0
0
10
20
30
40
50
60
70
80
Q. 1 10/11 Q.1 11/12
EU
Rm_
Environmental Services
Energy Supply South East Europe
Energy Trade and Supply
Netw ork Infrastructure Austria
Generation
Financial performance Q. 1 2011/12
64
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 and other statements that are not historical facts.
The Company believes any such statements are based on reasonable assumptions and reflect the judgement of EVN’s management based on factors currently known by it.
No assurance can be given that these forward-looking statements will prove accurate and correct, or that anticipated, projected future results will be achieved.
For additional information regarding risks. Investors are referred to EVN’s latest Annual report.
65
EVN Investor RelationsAdditional information
Klára Székffy
Head of Investor Relations
Phone: +43 2236 200-12745
Fax: +43 2236 200-82745
E-mail: [email protected]
Doris Lohwasser
Investor Relations
Phone: +43 2236 200-12473
Fax: +43 2236 200-82473
E-mail: [email protected]
Investor information on the web
www.evn.at
www.investor.evn.at
www.responsibililty.evn.at
E-mail: [email protected]
EVN AG
Headquarters
EVN Platz
2344 Maria Enzersdorf