2009/10 Full Report / climate change / to / Welcome Full Report 2009/10 Wel/ come to climate change New challenges. New perspectives. The climate is changing. Meteorologically speak- ing, it is getting warmer. Economically, it is quite stormy. Welcome to cli mate change? Well, yes! EVN is accepting these challenges. The climate is changing. Meteorologically speak- ing, it is getting warmer. Economically, it is quite stormy. Welcome to cli mate change? Well, yes! EVN is accepting these challenges. / Contents EVN in short. Rooted in Lower Austria, successful in Europe – 06 an overview of the latest EVN projects and figures. Equipped for the future. The members of the EVN Executive Board, Burkhard Hofer, Peter Layr and Herbert Pöttschacher speak about current challenges and the 10 new EVN Strategy 2020. EVN on the capital market. The most important data, facts and 18 developments pertaining to the EVN share. Facts and figures. For the first time, EVN presents facts 20 and figures as still life photography. The change is enormous. Prof. Nebojsa Nakicenovic, one of the world’s leading 24 energy economists, on change and challenges. The showcase project Dürnrohr. Electricity is generated, waste ecologically treated and numerous households also supplied with district heat. An investment in EVN’s core 28 market, which pays off for everyone! The climate protection dilemma. Prof. Mojib Latif on global warming, solutions 38 and scenarios if no way out can be found. Hydropower for South East Europe. Three EVN projects on the Devoll and Drin rivers in Albania and the Gorna Arda River in Bulgaria are arising, all with a common goal: the sustainable improvement in supplying 42 entire regions with renewable energy. Change as an opportunity. EVN is becoming more international. The Group 48 HR Day highlights opportunities for employees. Electricity and gas – safely and securely! EVN ensures a reliable supply of gas in Lower Austria with the 56 new “Südschiene“ (southern section of trans-regional pipeline). Diversity of life. The specific ways EVN stands up 62 for maintaining biodiversity. EVN Powerteam 2010. 36 five-person teams from 33 Lower Austrian municipalities 66 compete to win the title of “EVN Powerteam 2010“. Clear water for Istanbul. Istanbul’s quality of life is improving thanks to the large 72 Ataköy wastewater purification plant constructed by EVN. 06 Editorial 37 News in brief from Lower Austria 46 News from EVN’s foreign markets The Wachau region is e-mobile. 54 Employee news EVN launched an e-mobility project in the 60 Security of energy supplies: the projects Wachau in 2010. Everyone can comfortably bike through the UNESCO World Heritage 65 Biodiversity newsflash Site in an ecologically compatible manner. 70 Social and societal involvement A pilot project with enormous potential! 76 News from the Environmental Services segment 78 82 Innovation news 83 Editorial information Editorial Ladies and Gentlemen! Acting holistically also means not forgetting the weakest among us in our society and assuming corporate social For years the sustainability aspects of our business operations responsibility towards all our stakeholders. A healthy, long-term has been dear to EVN’s heart. The demands placed on sustain- corporate development is only possible if we achieve a balance ability reporting are continually growing, and call for new, between environmental, social and economic success. innovative approaches. With this “Full Report” we are breaking new ground. Under the motto We look forward to your suggestions and wish you exciting “Welcome to change” we will reading! not only describe various aspects of climate protection which are so important to us. Change begins in our own minds, and re- quires the ongoing extension of CEO Dr. Burkhard Hofer our own horizon. For this reason, Spokesman of the Executive Board we attach considerable impor- tance to the extensive further In the publication “EVN Figures, Data, Facts 2009/10” you will find the Corporate Governance Report, the Financial Report and facts on sustainability education and professional de- in accordance with the guidelines of the Global Reporting Initiative (GRI). velopment of all our employees. If a copy is not availability to you, you can request one at www.investor.evn.at. EVN in short Rooted in Lower Austria, successful in Europe – an overview of the latest EVN projects at a glance. Energy and environmental services from a single source EVN business segments. As an international, publicly listed energy and environmental services company based in Lower Austria, the country’s largest federal province, we fulfill the primary daily needs of our customers. On the basis of a state-of-the-art infrastructure, we offer our customers electricity, gas, heat, water, waste incineration and related services from a single supplier. With this reliable and top quality product and service offering, we safeguard and improve the quality of life of our more than 3.6m energy customers with respect to their energy supply. Moreover, EVN has gained extensive expertise in the planning and construction of water supply, wastewater treatment, desalination, waste incineration and waste incineration plants over the last 20 years on the basis of 82 environmental projects carried out in its markets. All in all, EVN operates in 19 countries. The reliability and security of the energy supply, the prudent use of natural resources, the creation of a modern infrastructure and the highest quality demands are the focal points of all our activities. Taking account of the stipulations contained in IFRS 8 Power generation from thermal production capacities and re- “Business Segments”, which must be Generation newable energy (hydropower, solar power and photovoltaics) applied as of the 2009/10 financial year, the identification of operating segments is Network Infrastructure Operation of regional electricity and natural gas networks as exclusively based on the internal organizational Austria well as cable TV and telecommunication networks and reporting structure. Thus from a regional Trade and sourcing of electricity and primary energy sources, point of view, the Energy segment encompasses Energy Trade sales to wholesalers and end customers, heat generation and Supply EVN’s business activities in Austria and and sale Germany as well as in South East Europe with Bulgaria, Macedonia, Albania and Energy Supply Operation of electricity networks, electricity sales to South East Europe end customers, heat generation and sale, gas networks Croatia, and from a functional perspective, the energy value chain of the energy business Environmental Drinking water, wastewater treatment (generation, distribution and supply). Services and waste incineration The Environmental Services segment encom- passes the business areas of drinking water, Strategic Investments RAG, BEGAS, BEWAG, VERBUND AG and Other and central Group functions wastewater treatment and waste incineration in 15 countries. 06 EVN Full Report 2009/10 Markets at a glance EVN in Central, Eastern and South East Europe (since 2003) Drinking water and wastewater projects in 15 countries Waste incineration plant in Moscow EVN in Germany Electricity production (as of 2011) EVN in Bulgaria (since 2004) Electricity distribution and supply Heat distribution and supply, EVN in Austria electricity and heat generation Highest level of integration Power plant project in preparation in all segments EVN presence Energy supply EVN in Croatia (since 2009) Drinking water and wastewater projects Three concessions Newly acquired for the gas supply Large completed projects Under construction EVN in Albania EVN in Macedonia (since 2006) Waste incineration Power plant projects under Electricity distribution and supply Power plants under construction construction or in preparation Electricity production Group headquarters Regional locations Up, up and away +0.9% Revenue to Euro 2,752.1m + % EBIT to 6.9 Euro 187.3m + % Financial result to Euro 83.6m 64.5 + % + % Energy for Lower Austria 16.3 11.6 Climate protection, in concrete terms. In recent years EVN EBITDA has invested more than EUR 200m to implement its Energy Group profit for the period to Euro 416.6m Concept for the Lower Austrian Central Region, thus making to Euro 207.0m a significant contribution to climate protection. In 2009, a new steam turbine was put into operation at the Dürnrohr power plant. The steam produced by the power station and waste Massive investments incineration facility is not only used to generate electricity Security of supply. EVN invested EUR 394.0m in the but also district heat for the provincial capital of St. Pölten. 2009/10 financial year, focusing on expanding and Moreover, efficiency was further optimized on the basis of a modernizing networks in Lower Austria, in particular new control technology. A turbular conveyor belt with a length the gas network featuring the southern section of the of 3.2 kilometres designed to transport coal from the Danube trans-regional gas pipeline. EVN is also continuing to river bank to the Dürnrohr power plant was put into operation massively invested in upgrading distribution networks in 2010. As a result, about half of the energy sources required and electricity metre technology in South East Europe. by the power station as well as the residual products which arise will be delivered or transported away by waterway, thus considerably minimizing the volume of lorry traffic. EVN Full Report 2009/10 07 EVN in short More energy from renewable sources Focus on wind, water and the sun. EVN is focusing on renewable energy sources in its efforts to expand its own power generation capacities. The long-term goal is to achieve a power generation mix featuring 50% from renewable. Up to EUR 200m were invested in the construction of new wind power plants in Lower Austria alone. Capacities are also been continually expanded in South East Europe. EVN in cooperation with VERBUND AG is currently building the Ashta run-of-river power station on the Drin River in Northern Albania. In 2012 the Hydromatrix power station with a capacity surpassing 50 MW is expected to come on stream.