15 / EVN Full Report 2014 EVN Full Full Report 2014 /15 EVN Future Lab @ EVN_Future_Lab The world of tomorrow? # We_have_answers Full Report 2014 /15 Future Lab Designing the future with its many different facets is the central subject of this full report. EVN is actively and consciously addressing the accom­ panying challenges. In order to identify and systematically examine the many different future scenarios, EVN founded the future lab – an internal think tank – in 2014/15. The objectives of its analyses were to pinpoint possible development trends, determine the company’s current position and develop future­oriented business models. This full report provides an overview of the processes used by the EVN Future Lab and the results achieved to date. At this point, we would like to thank all the contributors to the future lab for their dedication and commitment! Key figures +/– 2014/15 2013/14 in % 2012/131) Sales volumes Electricity generation volumes GWh 4,882 4,395 11.1 3,332 thereof from renewable energy GWh 2,106 1,868 12.8 1,181 Electricity sales volumes to end customers GWh 19,263 19,317 –0.3 20,403 Natural gas sales volumes to end customers GWh 5,241 5,383 –2.6 6,475 Heat sales volumes to end customers GWh 2,038 1,991 2.4 1,911 Consolidated statement of operations Revenue EURm 2,135.8 1,974.8 8.2 2,105.9 EBITDA EURm 583.2 184.1 – 540.0 EBITDA margin2) % 27.3 9.3 – 25.6 Results from operating activities (EBIT) EURm 268.2 –341.4 – 242.2 EBIT margin2) % 12.6 –17.3 – 11.5 Result before income tax EURm 207.9 –373.3 – 170.7 Group net result EURm 148.1 –299.0 – 109.3 Consolidated statement of financial position Balance sheet total EURm 6,501.2 6,841.8 –5.0 7,283.7 Equity EURm 2,590.1 2,632.7 –1.6 3,079.2 Equity ratio2) % 39.8 38.5 – 42.3 Net debt EURm 1,230.9 1,622.4 –24.1 1,809.6 Gearing 2) % 47.5 61.6 – 58.8 Return on equity (ROE) 2) % 7.3 –9.5 – 5.0 Consolidated cash flow and investments – Net cash flow from operating activities EURm 478.3 546.0 –12.4 570.0 Investments 3) EURm 322.7 396.3 –18.6 372.9 Net debt coverage (FFO) 2) % 48.4 41.3 – 38.3 Interest cover (FFO) x 7.4 8.1 –9.0 8.8 Value added Net operating profit after tax (NOPAT) EURm 341.0 144.5 – 307.3 Capital employed4) EURm 4,523.1 4,900.5 –7.7 5,046.6 Return on capital employed (ROCE)2) % 5.3 –3.8 – 3.9 Operating ROCE 2) % 7.5 2.9 – 6.1 Weighted average cost of capital (WACC)2) % 6.5 6.5 – 6.5 Economic value added (EVA®) 5) EURm 47.0 –174.1 – –20.7 Share Earnings EUR 0.83 –1.68 – 0.61 Dividend EUR 0.426) 0.42 – 0.42 Payout ratio2) % 50.4 – – 68.6 Dividend yield 2) % 4.3 4.1 – 3.7 Share performance Share price at 30 September EUR 9.85 10.13 –2.7 11.29 Highest price EUR 10.56 12.50 –15.6 12.66 Lowest price EUR 9.50 9.76 –2.6 9.42 Market capitalisation at 30 September EURm 1,773.0 1,821.0 –2.6 2,031.0 Credit rating Moody’s A3, stable A3, negative – A3, stable Standard & Poor‘s BBB+, stable BBB+, stable – BBB+, stable 1) The figures for the 2012/13 financial year were adjusted retrospectively in the previous year (see Full Report 2013/14, page 148). 2) Changes reported in percentage points 3) In intangible assets and property, plant and equipment 4) Average adjusted capital employed 5) As defined by Stern Stewart & Co 6) Proposal to the Annual General Meeting 2014/15 2013/14 2012/13 Employees Number of employees Ø 6,973 7,314 7,445 thereof Austria Ø 2,378 2,407 2,407 thereof abroad Ø 4,595 4,907 5,038 Employee fluctuation % 2.2 2.8 3.2 Proportion of women % 21.9 21.4 21.9 Training hours per employee hrs. 30.7 34.9 31.3 Number of occupational accidents 83 97 121 Environment Direct greenhouse gas emissions (Scope 1) t 2,610,312 2,215,563 1,677,385 Specific greenhouse gas emissions (Scope 1) kg/MWh 334.31 336.21 281.54 NOX emissions t 893 823 1,065 Hazardous waste1) t 11,246 10,703 9,266 Water consumption (drinking and process water) m³ 2,275,214 2,279,469 2,040,738 1) Without building residues and power station by-products Equity, net debt in EURm Cash flow and investments in EURm Gearing in % 570.0 546.0 478.3 3,079.2 396.3 2,632.7 2,590.1 372.9 322.7 1,809.6 1,622.4 1,230.9 58.8 61.6 47.5 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 Equity Cash flow from operating activities Net debt Gearing Investments Revenue, EBITDA in EURm Employees by region EBITDA margin in % 2,105.9 2,135.8 1,974.8 7,445 7,314 5,038 6,973 4,907 4,595 25.6 27.3 27,3 583.2 2,407 2,407 2,378 540.0 9.3 184.1 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 Revenue Abroad EBITDA EBITDA margin Austria Contents Intro 2 About this report 3 Editorial 4 “Intelligent networks and energy management are the future …“ (Interview with the Executive Board) 10 Report of the Supervisory Board 13 Operating highlights 2014/15 14 “EVN Future Lab: new impulses, new mind-set” Company & strategy 27 Company profile and resources 34 Strategy Stakeholders 42 Stakeholders 45 Customers 55 Shareholders and investors 60 Society 67 Environment and climate 79 Employees 90 Suppliers Corporate governance 96 Corporate governance report 105 Corporate governance and sustainability Management report 106 Energy policy environment 108 General business environment 109 Energy sector environment 111 Business development 118 Non-financial indicators 120 Risk management 125 Share structure and capital disclosures 126 Outlook for the 2015/16 financial year Segment reporting 128 Overview 130 Generation 132 Energy Trade and Supply 132 Network Infrastructure Austria 135 Energy Supply South East Europe 137 Environmental Services 139 Strategic Investments and Other Business Consolidated financial statements for 2014/15 141 Service 220 Glossary 224 CSR programme 234 Advisory boards 235 Assurance statement 237 GRI G4 Content Index Inside cover Contacts Inside cover Main EVN AG subsidiaries Inside cover Editorial information About this report EVN has published an integrated annual and sustainability report, EVN’s objective is to provide detailed information on the subjects a so-called “full report”, for each financial year since 2009/10. The that are of key importance to its stakeholders. The reporting con- equal treatment of sustainability content, including the CSR pro- tent is based on legal requirements, the information needs of stake- gramme, with the annual report and corporate governance report holders and the most important areas of activity in EVN’s materiality reflects EVN’s self-image as a responsible energy and environmen- matrix (page 37). In developing this matrix, EVN’s internal and exter- tal services provider. A central element of EVN’s integrated business nal stakeholders identified the areas that bear the greatest impact, model is the well-balanced treatment of its various stakeholder opportunities and risks for the company and its stakeholders. The groups. The multifaceted and diverse information needs of these CSR materiality matrix is evaluated on a regular basis to incorpo- stakeholder groups are reflected in the structure of this full report. In rate new trends and subjects that are relevant to the various stake- addition, this report meets the high “Advanced Level” requirements holder groups. A detailed list of the areas of activity and the related defined by the UN Global Compact and also presents EVN’s progress GRI aspects used to define the reporting content can be found in meeting the relevant standards. online under www.evn.at/EVN-Group/responsibility/CSR- reporting.aspx. References Additional information on certain topics is provided on EVN’s home- Compared to the previous year’s report, there were no material page and cross-referenced in this report. The full report also includes changes in the scope or presentation of information. In agreement references to the GRI standards and to other information within the with the GRI reporting standards, information of low importance is report. Different reference signs are used to facilitate the reader’s not provided in order to maximise relevance and transparency by orientation inside and outside the report. The signs used in the concentrating on the most significant issues. The indicators that are 2014/15 full report are listed below: not applicable to EVN are designated as such in the GRI Content Index at the end of this report. Reference to the GRI standards The Accounting Department, Controlling Department, Human Resour- Reference to additional information within the full report ces Management and Environmental Protection and Controlling Department were responsible for the collection and calculation of Reference to content on the Internet data. The data are based on the GRI indicator protocol, which was applied as completely as possible. Compliance with this reporting Printing standard and the related criteria was reviewed and confirmed by The 2014/15 full report was printed according to the cradle-to- TÜV SÜD (see page 235).