DGAP-News

EVN AG: Business development in the 2013/14 financial year - Seite 2

The development of revenue was negatively influenced by the mild winter
weather as well as earlier tariff decisions in Bulgaria and Macedonia. A
further negative effect resulted from a communication by the Bulgarian
regulatory authority concerning the request for the repayment of revenue
from previous periods. In addition, a decline was recorded in orders
processed in the international project business.

In the 2013/14 financial year EVN generated an EBITDA of EUR 184.1m, which
is 65.9% lower than the previous year. This development resulted, above
all, from an valuation allowance of EUR 191.4m recognised on a leasing
receivable in the fourth quarter of 2013/14 in connection with the thermal
waste utilisation plant no. 1 in Moscow. Significant doubts over the
realisation of the project made this step necessary.

The impairment losses recognised during the previous year were related
primarily to goodwill and customer bases in Bulgaria und Macedonia, to the
sludge treatment plant and other components of the co-generation plant in
Ljuberzy, Moscow, and to generation capacity and corresponding investments
in Austria, Germany and Bulgaria. As a result of these impairment losses
totalling EUR 269.5m, EBIT fell to EUR -341.4m. Financial results amounted
to EUR -31.9m and were therefore EUR 39.6m higher than the previous year.
This improvement resulted primarily from an increase in income from
investments, which was influenced by the absence of negative prior year
effects, as well as an increased dividend from Verbund AG in 2013/14. On
balance, Group net result fell to EUR -299.0m (previous year: EUR 109.3m).

Since the effects that led to the negative Group net result were mainly not
cash effective, the Executive Board will recommend to the 86th Annual
General Meeting the distribution of a stable dividend of EUR 0.42 per share
for the 2013/14 financial year (previous year: EUR 0.42). This corresponds
to a dividend yield of 4.1%, (previous year: 3.7%) based on the share price
of the EVN AG on 30 September 2014 (EUR 10.13).

Reduced net debt; solid balance sheet structure

Group net result was heavily influenced by noncash items, meaning the
respective adjustments were made under gross cash flow or cash flow from
operating activities, depending on the balance sheet classification.
Therefore cash flow from operating activities was positive in spite of the
negative Group net result. All in all, gross cash flow fell 32.7% to EUR
337.4m; cash flow from operating activities reduced 4.2% to EUR 546.0m.