EQS-News: EVN AG / Key word(s): Annual results EVN AG: Business development in the 2022/23 financial year 12/14/2023 / 07:30 CET/CEST The issuer/publisher is responsible for the content of the announcement. ═════════════════════════════════════════ ═════════ ════════════════════════ Highlights • Group result of 529.7 million euros; in particular due to earnings growth in Southeastern Europe, the higher dividend from Verbund AG and positive earnings contributions from renewable electricity generation • Impact on earnings of around -240 million euros from the Austrian sales business for electricity and natural gas • Dividend proposal: 0.52 euros per share plus a special dividend of 0 .62 euros per share • Increase in renewable generation to 77.0% after commissioning of new wind power and photovoltaic systems with over 70 MW capacity • EVN is the largest charging station operator for e-mobility in Austria with around 2,500 charging points • Investments of around 700 million euros at a historic high, around 88% of which is ecologically sustainable in accordance with the EU Taxonomy Regulation Energy industry environment In the 2022/23 financial year, the weather in all three of EVN’s core markets was characterized by mild temperatures. The total heating degree – it defines the temperature-related energy requirement – was slightly below the long-term average in Austria and well below the long-term average in Bulgaria and North Macedonia. After the massive fluctuations and upheavals in the previous financial year, primary energy and energy prices fell again in the reporting period, especially during the summer months. Towards the end of the reporting year, however, an opposite trend emerged again. The prices for CO(2) emission certificates were an exception: although their price fluctuated, they were on average around 8% higher than the previous year. These developments also had a corresponding impact on the market prices for electricity: although they recorded a significant decline in the year under review, they remained at a comparatively higher level compared to previous years. EBITDA, EBIT and consolidated earnings above the previous year’s level. EVN’s sales revenue amounted to EUR 3,768.7 million in the 2022/23 financial year, which was 7.2% below the previous year’s figure. This was primarily due to a decline in sales in Southeastern Europe, which in turn resulted from lower network and energy sales volumes as well as falling wholesale prices. Sales revenue also fell in the international project business due to the extensive completion of the sewage treatment plant in Kuwait. The decline in sales was mitigated by positive price and volume effects in renewable electricity generation, positive valuation effects from hedging transactions, higher sales revenue from natural gas trading, increased sales prices at EVN Hitze and higher network fees. Driven by the declining wholesale prices in Southeastern Europe, expenses for external electricity purchases and energy sources fell by 26.5% to EUR 1,675.5 million compared to the previous year. This includes positive advance effects from the procurement of energy to cover network losses, which are offset again in the following year in accordance with the regulatory methodology. In particular, higher costs for network losses and upstream network costs in Netz Niederösterreich as well as increased energy procurement costs at EVNwärme had a counteracting effect. In addition, the increased electricity production of the Verbund Inn power plants led to higher costs for purchasing electricity from third parties. Third-party services and other material costs fell by 6.3% to EUR 662.7 million in line with the sales development in the international project business. Inflation-related increases in the other group companies were thus compensated for. As a result of collective agreement adjustments, personnel expenses in the reporting period were 12.6% higher than the previous year at EUR 419.2 million. The number of employees increased over the period to 7,255 employees (previous year: 7,135 employees). Other operating expenses recorded an increase of 27.7% to EUR 202.2 million, which also includes the energy crisis contribution levied on surplus revenue from electricity generation in Austria since December 2022. The share of the results of the companies included at equity amounted to –67.6 million euros (previous year: 98.9 million euros). The decline recorded here was caused – as already reported during the financial year – by the energy sales company EVN KG, whose earnings development in the reporting period was heavily impacted by several factors: In addition to high procurement costs for energy, which can only be passed on with a delay, these were lower reporting date valuations of hedging transactions as well as the allocation of provisions for impending losses from contractual delivery obligations. Overall, EVN KG’s loss for the year as a whole amounted to EUR 240.3 million. In contrast, the earnings contributions of RAG, Verbund Innkrafte and Burgenland Energie improved. A write-up in value at the Ashta hydroelectric power station also had a positive effect. Based on these developments, EVN’s EBITDA in the reporting period was 15.1% above the previous year’s level at EUR 869.0 million. Due to investments, scheduled depreciation increased by 5.8% to EUR 336.5 million. When comparing the effects from impairment tests, the main thing to take into account when comparing the periods is the sharp decline in impairments recorded in the previous year totaling EUR 114.8 million. In the reporting period, the impairments amounted to 7.1 million euros and related in particular to district heating systems in Lower Austria. In addition, write-ups totaling EUR 3.2 million were made on EVNwärme and EVN Wasser systems. Based on all of these developments, an EBIT of EUR 528.5 million was calculated (previous year: EUR 331.6 million). EVN’s financial result in the 2022/23 financial year amounted to 127.6 million euros (previous year: -30.5 million euros) and was largely due to Verbund AG’s higher dividend of 3.60 euros per share for the 2022 financial year (previous year: 1.05 euros per share). In total, the earnings contribution from the investment in Verbund AG amounted to EUR 158.0 million in the reporting period. In addition, the financial result in the previous year was burdened by foreign currency exchange rate developments and the impairment of a loan. On balance, all of these developments resulted in earnings before income taxes of EUR 656.2 million (previous year: EUR 301.2 million). After taking into account the income tax expense of EUR 74.0 million (previous year: EUR 64.0 million) and the share of earnings attributable to non-controlling interests, the consolidated result amounted to EUR 529.7 million (previous year: EUR 209.6 million). Solid balance sheet structure, increased investment program and EU taxonomy regulation EVN has a solid and stable capital structure, which forms a good basis for the implementation of the comprehensive investment program in accordance with EVN Strategy 2030. In the reporting period, investments increased to 694.1 million euros. In the coming years up to 2030, investments are expected to be in a range of 700 to 900 million euros annually, three quarters of which will be in Lower Austria. EVN is thus making a substantial contribution to the future of energy. In the 2022/23 financial year, the proportion of capital expenditure (CapEx) classified as ecologically sustainable in accordance with the EU Taxonomy Regulation was 87.8% (previous year: 84.7%). Energy. Water. Life. – Developments in the energy and environmental business EVN Climate Initiative With the EVN Climate Initiative and the formulation of science-based reduction targets for greenhouse gas emissions, EVN has anchored the topic of climate protection centrally in all activities as part of the 2030 Strategy. With these goals and the measures developed based on them, EVN is making a measurable contribution to curbing climate change. As the central designer of a CO(2)-free energy future, EVN is investing heavily in the expansion of renewable generation capacities. Significant progress was made in the 2022/23 financial year with the repowering of the Japons wind farm, the completion of the wind farm in Palterndorf-Dobermannsdorf and the commissioning of three large-scale photovoltaic systems in Grafenwörth, Trumau and Theiß. Two further photovoltaic projects in Lower Austria and North Macedonia will be put into operation in the coming weeks. Based on an existing project pipeline, EVN’s generation capacities in the areas of wind power and photovoltaics are to be increased to over 770 MW and 300 MWp, respectively, by 2030. Energy business In the 2022/23 financial year, electricity generation from renewable energy increased by 2.1% to 2,295 GWh. The significantly below-average wind volume was offset by the annual increase in electricity production from hydropower. The share of renewable generation was 77.0% in the reporting period (previous year: 66.8%). Meanwhile, thermal generation fell by 38.6% to 686 GWh, mainly due to a lower number of calls from the Tisza power plant for grid stabilization by the Austrian transmission system operator. Environmental and water business Improving the security and quality of the drinking water supply in Lower Austria is a central investment focus for EVN. Construction of the second section began in the 2022/23 financial year to build a 60 km long transport pipeline from Krems to Zwettl to secure the long-term water supply in the Waldviertel and Weinviertel. During the reporting period, the sixth natural filter system in Bisamberg (investment volume: 7.0 million euros) was put into operation and the construction of another system in Obersulz began. In the international project business, WTE Wassertechnik was working on the planning and construction of a total of twelve projects in Germany, Poland, North Macedonia, Romania, Bahrain and Kuwait as of September 30, 2023. As announced ad-hoc on September 18, 2023, a structured sales process was started for WTE Wassertechnik. Outlook for the 2023/24 financial year For the 2022/23 financial year, the Board of Directors at the 95th Annual General Meeting will distribute a dividend of 0.52 euros per share plus a special dividend of 0.62 euros per share, for a total of 1.14 euros per share, suggest. For the 2023/24 financial year, assuming a stable regulatory and energy policy environment, EVN expects consolidated earnings in the range of EUR 420 to 460 million. Against the background of the investment and growth prospects up to 2030 and beyond, EVN’s dividend policy will also be reformulated for the future. The future dividend distribution should be at least 0.82 euros per share. EVN intends to allow its shareholders to participate in additional increases in earnings to an appropriate extent. In the medium term, the aim is to achieve a payout ratio of 40% of the consolidated result adjusted for extraordinary effects. You can find the full report on the 2022/23 financial year at
www.investor.evn.at. ═════════════════════════════════════════ ═════════ ════════════════════════ 12/14/2023 CET/CEST Publication of a corporate news/financial announcement, transmitted by EQS Group AG. www.eqs.com
═════════════════════════════════════════ ═════════ ════════════════════════ Language: German Company: EVN AG EVN Platz 2344 Maria Enzersdorf Austria Telephone: +43-2236-200-12294 Email : info@evn.at
Internet: www.evn.at
ISIN: AT0000741053 WKN: 074105 Indices: ATX Exchanges: Vienna Stock Exchange (official trading) EQS News ID: 1796387 End of message EQS News Service 1796387 December 14th, 2023 CET/CEST