EVN AG: Business development in the first quarter of 2023/24

EQS-News: EVN AG / Key word(s): Quarter Results
EVN AG: Business development in the first quarter of 2023/24

29.02.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Highlights

* Stable business development due to EVN's diversified business model

  * Substantial progress in expansion of renewable generation: commissioning
    of two further wind parks

* Increase in renewable generation to 81.8%

  * Transformation of the energy system as a growth perspective: investments
    nearly 20% above previous year

  * Construction proceeding as scheduled on the second section of the
    cross-regional drinking water transport pipeline between Krems and
    Zwettl

  * Construction of the seventh natural filter plant in Obersulz,
    commissioning planned for spring 2024

  * New Chief Technology Officer Stefan Stallinger and Chief Financial
    Officer Alexandra Wittmann appointed by the Supervisory Board

  * Dividend policy for the current financial year confirmed: distribution
    of at least EUR 0.82 per share

Energy sector environment

The temperature-related energy demand in the first quarter of 2023/24 was
substantially below the long-term average in all three markets; above the
previous year in North Macedonia, but lower in Austria. The reporting period
was characterised by a gradual decline in wholesale prices for electricity
and energy carriers. The current trends in consumer behaviour continued with
a focus on energy savings measures and increasing own generation from
customer-operated photovoltaic equipment.

Decline in revenue and Group net result, EBITDA slightly above previous
year's level

Revenue recorded by the EVN Group fell by 22.6% to EUR 909.1m in the first
quarter of 2023/24. The primary reasons for this negative development were
the valuation effects from hedges which followed the downward trend in
wholesale prices as well as the reduced use of the Theiss power plant for
network stabilisation. In South East Europe, the decline in revenue resulted
chiefly from a drop in electricity prices and lower energy sales volumes in
Bulgaria. The international project business also reported a decrease in
revenue due to the largely completed wastewater treatment plant in Kuwait.
The decline in revenue was offset in part by an increase in renewable
production, higher revenues from natural gas trading and higher network
tariffs.

Other operating income rose by 17.9% to EUR 35.0m.

In line with the development of sales volumes and revenue, the cost of
energy purchases from third parties and primary energy expenses fell by
29.3% to EUR 391.3m. This reduction resulted chiefly from the decline in
wholesale prices in South East Europe and lower primary energy costs for
electricity and heat generation.

The cost of materials and services fell by 29.9% to EUR 127.7m consistent
with the development of revenue in the international project business.

Personnel expenses, in contrast, rose by 16.8% year-on-year to EUR 111.8m.
The primary reasons were an increase in the workforce and adjustments
required by collective bargaining agreements.

Other operating expenses were 56.9% higher at EUR 74.9m. This position
includes the Energy Crisis Contribution levy on electricity, which equalled
EUR 10.6m in the first quarter of 2023/24 (previous year: EUR 7.0m, first
charged in December 2022).

The share of results from equity accounted investees with operational
nature, which was massively influenced in the previous year by negative
developments at the energy supply company EVN KG, turned clearly positive at
EUR 47.4m in the first quarter of 2023/24 (previous year: EUR -43.2m). In
addition to the earnings improvement at EVN KG, higher contributions were
also received from Burgenland Energie and Verbund Innkraftwerke.

Based on these developments, EBITDA recorded by the EVN Group rose by 1.4%
year-on-year to EUR 285.7m in the first quarter of 2023/24.

The higher pace of investments led to an increase of 5.2% in scheduled
depreciation and amortisation to EUR 84.8m. In total, EBIT was 0.3% below
the previous year at EUR 200.5m.

Financial results totalled EUR -11.9m (previous year: EUR -10.2m), whereby
the increase in interest expense was moderated by better performance of the
R138 fund and EVN's cash fund.

The result before income tax declined slightly by 1.2% to EUR 188.7m. After
the deduction of EUR 35.3m in income tax expense (previous year: EUR 36.2m)
and the earnings attributable to non-controlling interests, Group net result
for the period equalled EUR 143.8m. That represents a year-on-year reduction
of 3.7%.

Solid balance sheet structure

EVN has a solid and stable capital structure which provides a sound
foundation for the realisation of the extensive investment programme of EUR
700 to 900m annually. These investments will focus on the network
infrastructure, renewable generation and drinking water supplies over the
coming years. Net debt totalled EUR 1,372.9m as of 31 December 2023.

Energy. Water. Life. - Developments in the energy and environmental services
business

Energy business

EVN's electricity generation rose by 6.2% year-on-year to 809 GWh in the
first quarter of 2023/24. Higher wind and water flows combined with capacity
expansion supported a 32.4% increase in renewable generation to 662 GWh.
Declines were recorded in the use of the Theiss power plant for network
stabilisation by the Austrian transmission network operator and,
consequently, also in thermal generation. The share of renewable generation,
in total, improved to 81.8% (previous year: 65.6%).

The wind parks in Altlichtenwarth-Grosskrut and Prottes, which have an
installed capacity of 12.4 MW and 18 MW, respectively, were commissioned
during the reporting period. Two other wind parks (thereof one repowering
project) are currently under construction. Additional large-scale
photovoltaic plants in Dürnrohr and North Macedonia are scheduled for
commissioning in the second quarter of 2023/24 and will double the EVN
Group's installed photovoltaic capacity to roughly 80 MWp.

Environmental and water business

The focal point of investments in drinking water supplies remains on the
planning and construction of transport and connecting pipelines to further
improve and protect supply security. Construction on the second section of
the 60 km transport pipeline from Krems to Zwettl, which will provide
long-term protection for water supplies in the Waldviertel and Weinviertel
regions, is proceeding as planned. Commissioning is scheduled for the end of
2024. In addition, the seventh natural filter plant is currently under
construction in Obersulz.

In the international project business, WTE Wassertechnik was working on the
planning and construction of nine projects for wastewater treatment,
drinking water treatment and thermal sewage sludge utilisation in Germany,
Poland, Romania, North Macedonia, Bahrain and Kuwait as of 31 December 2023.
Three wastewater treatment plants in Poland and Romania were transferred to
the customers during the reporting period.

Confirmation of the outlook for the 2023/24 financial year

EVN expects Group net result within a range of EUR 420m to EUR 460m for the
current 2023/24 financial year - under the assumption of a stable regulatory
and energy policy environment.

The dividend will equal at least EUR 0.82 per share in the future, whereby
EVN wants its shareholders to appropriately participate in any additional
earnings growth. In the mid-term, a payout ratio equalling 40% of Group net
result, adjusted for extraordinary effects, is targeted.

The Letter to Shareholders on the first quarter of 2023/24 is available
under www.investor.evn.at.


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29.02.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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   Language:       English
   Company:        EVN AG
                   EVN Platz
                   2344 Maria Enzersdorf
                   Austria
   Phone:          +43-2236-200-12294
   E-mail:         info@evn.at
   Internet:       www.evn.at
   ISIN:           AT0000741053
   WKN:            074105
   Indices:        ATX
   Listed:         Vienna Stock Exchange (Official Market)
   EQS News ID:    1847451

End of News EQS News Service
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1847451 29.02.2024 CET/CEST