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EQS-News: EVN AG / Key word(s): Quarter Results
EVN AG: Business development in the first quarter of 2023/24
2024-02-29 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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.  
2024-02-29 CET/CEST This Corporate News was distributed by EQS Group AG. www.eqs.com  
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 2024-02-29 CET/CEST

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February 29, 2024 01:30 ET (06:30 GMT)