Close to the Customer. Efficient/ Comfortable/ Secure

Contact www.responsibility.evn.at www.investor.evn.at www.evn.at Information ontheinternet 1) Ratings Sustainability index ADR programme; Depositary Stock exchangelisting Tickers Number(ISIN) Identification Denomination Share capital EVN share –basicinformation 1) 85 Financial calender2013/14 Environmental Protection andControlling: StefanVadura, phone+432236200-12217, [email protected] Human Resources: ElviraHammer, phone+432236200-12727,[email protected] Investor Relations:DorisLohwasser, phone+432236200-12473, [email protected] Information andCommunication:JochenKugler, phone+432236200-12139,[email protected] General Secretariat andCorporateAffairs: UteTeufelberger, phone+432236200-12777, [email protected] Innovation officer: Andrea Edelmann,phone+432236200-12190,[email protected] CSR organisation,HumanResources: RenateLackner-Gass, phone+432236200-12799,[email protected] CSR representative, GasNetworkEngineering:PeterZaruba,phone+432236200-12249,[email protected] Members oftheCSRadvisoryteam Corporate SocialResponsibility(CSR) Contact partnerforquestionsregarding Katrin Stehrer, phone+432236200-13140 Doris Lohwasser, phone+432236200-12473 Gerald Reidinger, phone+432236200-12698 Contact partnerforquestionsregarding InvestorRelations Results Q.12013/14 Dividend payment day Ex-dividend th As of30September2013 Preliminary AnnualGeneral Meeting 1) 1) 27.02.2014 24.01.2014 21.01.2014 16.01.2014 Sponsored LevelIADRprogramme BankofNewYork (5ADR=1share); The Mellon EVNV.VI (Reuters);EVNAV (Bloomberg); AT; EVN(DowJones);EVNVY(ADR)

Annual results 2013/14Annual results 2013/14 3 Results Q. 1– Results HY. 1 2013/14 www.investor.evn.at EVN onlinefullreport 2012/13 Online report A3, stable(Moody’s); BBB+,stable(Standard &Poor’s) E-mail: [email protected]

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EVN Full Report 2012/13 Close to the customer. efficient/ comfortable/ secure/

EVN Full Report 2012 / 13 Photographer photographed tensubjects. For thisfullreport,DanielGebhartdeKoekkoek In” waspublishedin2013byKehrer,Heidelberg. the USA.Hisfirstphotobook“TheWorldWeLive Switzerland, Taiwan,GreatBritain,Irelandand been shownatgalleriesinAustria,Germany, Apple, Mercedes-BenzandIBM.Hisworkhas SZMagazin andFAZaswellcompanieslike Monokel, TheFinancialTimes,ZEITmagazin, magazines andnewspaperssuchasVanityFair, regular assignmentsincludeworkforinternational is oneofAustria’sbestknownphotoartists.His has workedasaphotographersince2006and The Tyrolean-bornDanielGebhartdeKoekkoek Full Report. took thephotosin2012/13 Daniel GebhartdeKoekkoek

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EVN Full Report 2012/13 Close to the customer. efficient/ comfortable/ secure/

Key figures GRI G3.1 Content Index

The GRI Content Index indicates where in this report contents relating to individual indicators can be found. Description Source Status The index is available on the internet at www.evn.at/GRI-Content-Index. EN27 Packaging materials taken back as a result of the subject of activity n. r. EN28 Fines incurred for infringements of environmental regulations no relevant cases Change 2012/13 2011/12 2010/11 EN291) Major impact on the environment through transportation See EN16 and EN17 EN301) Total expenses and investment for environmental protection 190f 2012/13 2011/12 in % 2010/11 2009/10 2008/09 Employees Sales volumes Sector supplements – Ecology Number of employees Ø 7,497 7,594 8,250 EU13 Biodiversity of compensation areas 191

GWh Description Source Status Electricity generation volumes 3,701 3,284 12.7 3,332 3,653 3,477 thereof Austria Ø 2,489 2,428 2,578 Social performance indicators thereof renewable energy sources GWh 1,954 1,503 27.2 1,181 1,300 1,267 thereof abroad Ø 5,008 5,166 5,672 Labour practices and decent employment 35f, 192f Declaration and profile LA1 Employees according to employment status and region 36, 192, 194 GWh LA2 Employee fluctuation 36, 194 Electricity sales volumes to end customers 20,209 21,241 –4.9 20,403 20,101 19,541 Employee fluctuation % 3.2 3.2 3.0 1 Strategy and analysis LA31) Benefits for full-time employees only 197f 1.1 Status of sustainability within the company 33ff Natural gas sales volumes to end customers GWh 6,333 6,166 2.7 6,475 6,738 6,102 % LA15 Return to work after parental leave 197 Proportion of women 21.9 21.6 22.8 1.2 Description of the most important effects, risks and opportunities 81ff Heat sales volumes to end customers GWh 2,062 1,951 5.7 1,911 1,821 1,576 LA4 Employees under collective agreements 194f Training hours per employee hrs. 31.3 26.9 22.1 LA5 Notification deadlines for major changes within the company 194f 2 Corporate profile LA61) Employees in occupational safety committees 194f Consolidated income statement Number of occupational accidents 121 86 113 2.1 – 2.10 Corporate profile 29ff, 40ff, 45 LA7 Injuries, occupational diseases, lost days, absence and fatalities 201 Revenue EURm 2,755.0 2,846.5 –3.2 2,729.2 2,752.1 2,727.0 LA8 Prevention of and education in serious diseases 200 3 Report parameters LA91) Occupational safety agreements with trade unions 200f 1) 3.1 – 3.13 Report parameters 28 EBITDA EURm 457.6 474.5 –3.6 474.9 416.6 373.4 Environment LA10 Training and further education per employee 199 1) 1)2) % Sector supplements – Corporate profile LA11 Programmes for knowledge management and lifelong learning 198 EBITDA margin 16.6 16.7 –0.1 17.4 15.1 13.7 Quantity of CO emission 1,000 t 1,465 1,424 1,736 1) 2 EU1 Installed capacity 30f, 45 LA12 Performance evaluation and development plans for employees 200 1) Results from operating activities (EBIT) EURm 218.5 223.2 –2.1 222.2 187.3 175.2 Specific NO emission kg/MWh 0.293 0.285 0.283 EU2 Energy generation 31, 91 LA13 Diversity of employees and leading bodies 192, 194 X LA14 Differences in remuneration due to gender 194 1)2) EU3 Customer numbers 45, 46 EBIT margin % 7.9 7.8 0.1 8.1 6.8 6.4 Hazardous waste1) t 9,266 10,429 9,396 EU4 Total length of long-distance and distribution lines 32, 45 Sector supplements – Labour practices and decent employment EU5 Quota of CO emission certificates 63 Profit before income tax EURm 180.3 259.7 –30.6 263.9 270.9 226.0 Water consumption (drinking and process water) m³ 2,040,939 1,571,833 1,682,836 2 EU14 Securing the requirement of skilled labour 196, 199f EU15 Retirements in the next five and ten years 195 EURm Group net profit 114.7 194.9 –41.2 192.3 207.0 177.9 1) Without building residues and power station by-products 4 Governance, commitments and engagement EU16 Health care, occupational safety 200f 4.1 Corporate governance, management structure 51ff, 175f Consolidated balance sheet EU17 Work days of subcontractors and suppliers for construction, servicing and maintenance 201 4.2 Explanation of whether the Executive Board chairman holds an operative management post 51ff, 175f EU18 Subcontractors and suppliers who have participated in health and safety training programmes 201 Balance sheet total EURm 7,102.1 6,863.2 3.5 6,870.4 6,731.2 6,695.4 4.3 Management bodies in organisations without a Supervisory Board because there is a Supervisory Board n. r. 4.4 Possibilities for contributions by employees and part owners 51ff, 175f Human rights 202f Equity EURm 3,066.5 3,013.7 1.8 3,165.8 3,025.3 3,127.2 4.5 Correlation between management body remuneration and organisational performance 51ff, 175f HR1 Investment agreements with human rights clauses 202 4.6 Mechanisms for the prevention of conflicts of interest 51ff, 175f HR2 Supplier controls for compliance with human rights 202f Equity ratio2) % 43.2 43.9 –0.7 46.1 44.9 46.7 4.7 Expertise of the management committee in the sustainability area 34, 36, 175f HR3 Training programmes on company-relevant human rights aspects 203 4.8 Mission statements, codes of conduct, sustainability principles 175f HR4 Occurrences of discrimination and countermeasures taken 203 EURm Net debt 1,562.3 1,703.7 –8.3 1,579.2 1,458.2 1,378.2 4.9 Procedure for controlling sustainability performance 177 HR5 Freedom of assembly and collective negotiations 203 4.10 Performance rating of the Executive Board regarding sustainability 177 Gearing2) % 50.9 56.5 –5.6 49.9 48.2 44.1 Equity, Net debt in EURm, Gearing in % Cash flow and investments in EURm HR6 Business activities with the risk of child labour 203 4.11 Observance of the precautionary principle 33ff, 175ff HR7 Business activities with the risk of forced labour 203 2) 4.12 Support of external initiatives 177 1) Return on Equity (ROE) % 5.2 7.6 –2.4 7.6 7.4 6.3 561.7 HR8 Training of security personnel on the topic of human rights 203 522.0 4.13 Membership in associations and interest groups 177f HR91) Violation of the rights of indigenous peoples because no activities in countries with Consolidated cash flow and investments 499.3 4.14 – 4.17 Stakeholder management (selection, approaches, core topics) 37f, 204f, 206 indigenous people as defined by GRI n. r. 3,176.8 461.0 3,127.2 3,025.3 3,013.7 3,066.5 Net cash flow from operating activities EURm 561.7 461.0 21.8 522.0 499.3 335.3 415.7 415.7 HR10 Number of checks concerning the compliance with human rights and/or impact assessment 204 394.0 Performance indicators HR11 Number of complaints regarding the compliance of human rights no relevant incidents

Investments3) EURm 328.4 308.3 6.5 415.7 394.0 415.7 56.5 335.3 328.4 49.9 308.3 48.2 50.9 Economic performance indicators 33ff, 38ff, 70f, 108 Society 204 2) 44.1 EC1 Directly generated and distributed economic value Inside Cover SO1 Effects of business activities on society 204 Net Debt Coverage (FFO) % 44.2 34.8 9.4 38.0 39.0 30.6 1,579.2 1,703.7 1,562.3 1,378.2 1,458.2 EC2 Financial effects of climate change 179 SO9 Business activities with significant potential or actually negative impact on local communities 204 Interest Cover (FFO) x 8.2 6.8 20.8 7.6 8.2 4.9 EC3 Company defined benefit plan obligations 197f SO10 Prevention and mitigation measures for business activities with significant potential or EC4 Government financial assistance 179 actually negative impact on local communities 204 Value added EC51) Ratios of standard entry-level remuneration compared to local minimum wages 194f SO2 Examination of corruption risks 205 Net operating profit after tax (NOPAT) EURm 258.5 318.8 –18.9 331.4 254.5 234.9 EC6 Business policies, practices and share of local suppliers 179 SO3 Employee training for the prevention of corruption 205 2008/09 2009/10 2010/11 2011/12 2012/13 2008/09 2009/10 2010/11 2011/12 2012/13 EC7 Employment of local personnel 179 SO4 Anti-corruption measures 205 Capital Employed4) EURm 4,748.5 4,647.0 2.2 4,395.4 3,952.4 3,493.8 EC8 Infrastructure investments and services, taking place primarily in the public interest 179f SO5 Political positions, participation in the political consensus building process, lobbying 205 EC91) Indirect economic effects 180 SO61) Donations to politicians no relevant issues 2) Return on Capital Employed (ROCE) % 4.3 5.8 –1.5 5.7 5.6 5.4 Equity Cash flow from operating activities SO71) Lawsuits following anti-competitive behaviour 205 2) Net debt Gearing Investments Sector supplements – Economy SO8 Fines/sanctions as a result of illegal activities no relevant incidents Operating ROCE % 5.4 6.9 –1.4 7.5 6.4 6.7 EU6 Short and long-term security of supply 33f, 38 Sector supplements – Society Weighted Average Cost of Capital (WACC)2) % 6.5 6.5 – 6.5 6.5 6.5 EU7 Programmes for Demand Side Management 180f EU8 Research and development activities 181f, 80 EU19 Participative decision making processes involving stakeholders 206 Economic Value Added (EVA®)5) EURm –50.1 16.7 – 45.7 –2.4 7.8 EU9 Reserves for the dismantling of nuclear power stations EVN does not operate any nuclear power plants n. r. EU20 Involuntary relocations 206 EU10 Planned capacity in relation to expected demand 25f, 36, 38 EU21 Crisis, emergency and contingency plans 206 Share EU22 Relocations 206 EU11 Average efficiency in production 32 EU12 Efficiency of long-distance lines and distribution networks 32 Earnings EUR 0.64 1.09 –40.8 1.08 1.27 1.09 Revenue, EBITDA in EURm, EBITDA margin in % Employees by region Product responsibility 48f PR1 Health effects along the product life cycle 49 6) Dividend EUR 0.42 0.42 – 0.41 0.40 0.37 Environmental performance indicators 183 PR21) Violations of health and safety regulations no relevant incidents 2,846.5 2,752.1 2,729.2 2,755.0 EN1 Material usage 183 PR3 Legally required information on products and services 64 2) % 2,727.0 Payout ratio 65.3 38.7 26.7 38.0 34.7 33.9 EN2 Use of recycled material 183 PR41) Violation of information requirements 206 EN3 Direct primary energy consumption 184 2) 6,374 PR51) Customer satisfaction 47f Dividend yield % 3.7 3.9 –0.2 3.8 3.5 2.7 5,990 EN4 Indirect primary energy consumption 184 5,672 PR6 Compliance with the law regarding advertising 49 5,166 5,008 EN51) Energy savings as a result of environmentally responsible use and efficiency increase 184 Share performance PR71) Violations regarding advertising no violations EN61) Initiatives for higher energy efficiency and renewable energy 184 PR81) Justified data protection complaints no relevant cases EN71) Initiatives for the reduction of indirect energy consumption 184 Share price at 30 September EUR 11.29 10.84 4.2 10.82 11.45 13.68 PR9 Fines incurred in consequence of violations of product and service conditions 206 17. 4 16.7 EN8 Total water withdrawal 185 EUR 16.6 1) Highest price 12.66 11.07 14.4 13.76 13.75 16.00 15.1 EN9 Water sources affected by withdrawal 185 Sector supplements – Product responsibility 13.7 1) 2,563 2,546 2,578 2,428 2,489 EN10 Recovered and reused water 185 EU23 Programmes to improve access to electricity and customer services 37f, 46ff, 181f Lowest price EUR 9.42 9.17 2.7 9.92 10.61 10.11 474.9 474.5 457.6 373.4 416.6 EN11 Land-use in protected areas 185 EU24 Safe use of energy and customer service accessibility 37f, 46ff EURm EN12 Effects of business activities on biodiversity 186f EU25 Injuries and fatalities in connection with company plants 207 Market capitalisation at 30 September 2,031.0 1,949.0 4.2 1,945.0 1,872.0 2,237.0 1) 2008/09 2009/10 2010/11 2011/12 2012/13 2008/09 2009/10 2010/11 2011/12 2012/13 EN13 Protected or rehabilitated natural habitats 186f EU26 Population in sales area without electricity supply 207 Credit rating EN14 Strategies and measures for the protection of biodiversity 186f EU27 Electricity disconnections due to payment arrears 207 1) EN15 Endangered species in the areas of business activities n. r. EU28 Frequency of power failures for regulatory reasons no detailed data A3, stable A3, stable – A3, stable A3, stable A2, negative Moody’s EN16 Direct and indirect greenhouse gas emissions 187 EU29 Average duration of a power failure for regulatory reasons no detailed data Revenue Abroad EN17 Other relevant greenhouse gas emissions 187 Standard & Poor‘s BBB+, stable BBB+, stable – A–, negative A–, negative A–, negative EU30 Average availability of power stations 32 EBITDA EBITDA margin Austria EN18 Initiatives for the reduction of greenhouse gas emissions and results 187ff EN19 Emissions of ozone-degrading substances n. r. 1) The figure for the prior year was adjusted (see consolidated notes, note 2. Reporting in accordance with IFRS, on page 108) EN20 NOX, SOX and other significant atmospheric emissions 189 Fully reported 2) Changes reported in percentage points EN21 Total wastewater discharge 189 Partially reported The EVN Sustainability report is oriented to the requirements of application level A+ of the GRI G3 guideline, version 3.1 and 3) In intangible assets and property, plant and equipment EN22 Waste according to type and disposal method 189 Not reported additional GRI indicators for the electricity industry (Electric Utility Sector Supplements) are incorporated. Compliance with the n. r. non-relevant report standards and the relevant criteria was assessed by Lloyd’s Register Quality Assurance (LRQA) and officially approved. 4) Average adjusted Capital Employed EN23 Major spills of hazardous substances 189 EN241) Weight of waste considered hazardous 189 5) As defined by Stern Stewart & Co. EN251 Waters affected by wastewater discharges and surface run-off 189 1) Additional You can find the GRI index as printed here on the website www.responsibility.evn.at > Service. 6) Proposal to the Annual General Meeting EN26 Initiatives for the reduction of environmental impact of products and services 190 performance indicator EVN continuously expands its reporting and makes every attempt to fully present all indicators. Key figures GRI G3.1 Content Index

Intro 2 Statement by the Executive Board 24 About this report 28 Business overview 29 Corporate profile 33 Corporate strategy 37 Stakeholder management 38 Overview of strategic projects 38 Financial strategy 39 Rating 40 EVN share 41 Shareholder structure 43 Investor Relations 45 EVN at a glance Focus on the customer 46 Corporate governance report 51 Commitment to the Austrian Corporate Governance Code 52 Corporate bodies 56 Remuneration report 57 Internal audit and risk management at EVN Report of the Supervisory Board 60 Management report 63 Legal framework 67 General business environment 68 Energy sector environment 70 Success and influencing factors 72 Business development 80 Non-financial indicators 81 Risk management 86 Share structure and capital disclosures 87 Outlook for the 2013/14 financial year Main EVN AG subsidiaries 89 Segment reporting 90 Overview 92 Generation 94 Energy Trade and Supply 95 Network Infrastructure Austria 97 Energy Supply South East Europe 99 Environmental Services 101 Strategic Investments and Other Business Consolidated financial statements 103 for 2012/13 Corporate Social Responsibility 174 175 Governance, commitments and engagement 179 Economic responsibility 183 Environmental responsibility 192 Social responsibility 208 CSR programme 216 Advisory Committee for Environmental and Social Responsibility 217 Assurance statement Glossary 219 Editorial information 224 GRI G3.1 Content Index Inside cover Walter Grill in the fisherman’s paradise on the Ybbs.

Ulf Seifert: clean water for the Berndl Pool.

The Gegenbauer family at the Zwentendorf photovoltaic power plant.

2 EVN Full Report 2012/13 Close to the customer — Contents Close to the customer For EVN, the needs and aspirations of its customers always have top priority. Accompany us on a visit to ten projects that show how customer closeness and economic success go hand in hand – for both sides.

04 SUPPLY SECURITY With high-tech helicopters, EVN makes sure the electricity network remains trouble-free.

06 Renewable energies Fisherman Walter Grill appreciates the fishing Helicopter testing of grounds around the hydropower station Schütt. electricity lines.

08 Renovation service Higher quality of life for Katharina Göbl thanks to EVN’s renovation service.

10 ENERGY POVERTY When energy costs threaten a family’s existence, energy counselling can help.

12 EVN IN CROATIA The Tvornica Kruha commercial bakery in Zadar now relies on natural gas.

14 EVN IN LITHUANIA More environmental protection, greater efficiency: the sludge treatment plant in Vilnius.

16 EVN IN BULGARIA Electricity for the small mountain village of Plochnik. Luisa Göbl. 18 EVN in Macedonia For Johnson Matthey, stable energy supplies are a decisive success factor.

20 Photovoltaics The Gegenbauer family invests in photovoltaic energy through a public participation model.

22 EVN WASSER Clean water for the new Florian Berndl Pool in Korneuburg/Bisamberg.

The Tvornica Kruha bakery Jonas Klebonas from in Croatia. Vilniaus vandenys.

EVN Full Report 2012/13 3 4 EVN Full Report 2012/13 Close to the customer — Supply security

Supplies? Secured! Theiss (Lower Austria). With high-tech helicopters, EVN makes sure the electricity network really works.

High-tech flights. With an average speed mission lines. In Lower Austria alone, EVN of 25 km/h, a bright red helicopter is hovering operates a 52,860 km electricity network. And near the Theiss power plant barely 100 metres lightning strikes can cause substantial damage. above the 380 kV overhead transmission line. That’s where the helicopter comes in: it flies The Huby-Fly is carrying three concentrated over and along the transmission lines at regular passengers: the pilot, an EVN staff member intervals. A special camera mounted on the and one of only two specialists in this field in underside is used to check the lines, metre for all of Europe. Lars Sonderstrøm from Sweden metre. EVN staffer Johannes Holzmayer: “This is staring at a small computer screen while he year we located 15 weak points in seven days.” moves a joystick just like in a video game. Now they need to be repaired. Because security of supply has top priority at EVN. Intact network. To reach the end customer, the electricity has to flow through the trans www.netz-noe.at

EVN Full Report 2012/13 5 The power and tranquillity of water Waidhofen/Ybbs (Lower Austria). A treasure for fly fishermen at the Schütt hydropower station.

Idyllic nature. Walter Grill, a free-lance it generates energy for nearly 2,700 households. consultant from Waidhofen, is up to his knees in And it’s environmentally friendly, of course. As one of the most beautiful sections of the Ybbs if he wanted to prove that, Grill raves about River, slightly downstream from his hometown. the biodiversity along the 6.6 kilometre fishing He casts his fishing rod with the hand-made section that is co-managed by EVN’s Christoph bait rhythmically in a high arch over the water. Friesenegger: Here you can find brook and After only a few minutes, he reels in a rainbow rainbow trout, grayling and bullhead. And there trout. “A great fish,” says Walter smiling – and are even shrimp in the tributary. “Naturally, there tosses the trout back into the water. To enjoy its was resistance among residents when the power freedom. “I don’t eat fish. In fact, I let them all plant project was announced,” Walter explains. go.” For Walter, fly fishing is meditation and not But: “In this neighbourhood, we discuss things a way to organise that night’s dinner. and solve our problems together.” He is really proud of his community. The young people don’t Partnership. In 2011, EVN opened a hydro- leave and there are enough jobs – and natural power station in Schütt – after an investment jewels just like the Ybbs. of roughly nine million Euros – to replace a 107-year-old facility. With a capacity of 1,980 kW, www.evn.at/hydropower

6 EVN Full Report 2012/13 Close to the customer — Renewable energies

EVN Full Report 2012/13 7 8 EVN Full Report 2012/13 Close to the customer — Renovation service Finally: nice and warm! Markt Piesting (Lower Austria). Thanks to expert advice from EVN’s renovation service, Katharina Göbl and her two children can really enjoy their idyllic rural life.

Frosty rooms in spite of heat. Coming home. Playing with the children. Having a coffee and relaxing with a good book. In short: just enjoying life. That is what Katharina Göbl planned when she moved from the city to a small house on the edge of the woods in 2009, a house where her great-grandparents once lived. But the idyllic atmosphere she imagined didn’t work out. This solid brick/wood frame structure that was built in 1951 proved to be as draughty as a barn in the cold season. The wind whistled through the old casement windows, and the bedrooms on the first floor just wouldn’t warm up – regardless of how high she turned up the heat. “I quickly decided that the house had to be renovated,” explained this musician and mother of two. But: “I had an uneasy feeling after my contacts with construction companies. I’m not a renovation expert. All I wanted was honest and competent advice.”

Nice to be home. Katharina found EVN’s renovation service more by chance. Andreas Kogler, a renovation specialist, came, took a close look at the house, helped with the planning, obtained several cost estimates and accompanied the entire process. Katharina: “In total, I spent 130,000 Euros on this project.” And did it pay off? Katharina: “The rooms are nice and cosy warm in the winter, my children can also play inside during the cold weather. The renovation really improved quality of life for all of us.” And, as if he wanted to prove that, son Felix raced through the house with his toy cars. And daughter Luisa is snuggling on the sofa in a T-shirt. Yes, that’s just the way Katharina Göbl imagined life in the country.

www.evn.at/renovation-service

EVN Full Report 2012/13 9 10 EVN Full Report 2012/13 Close to the customer — Energy poverty

Helping people to help themselves Gmünd (Lower Austria). When energy costs threaten a family’s existence, energy counselling can provide substantial relief.

Poverty trap. Sometimes life can be cruel. In to the Caritas Catholic charity organisation for situations like this, it’s important to have friends. help. And to their staff member Martina Floh, Or at least people who don’t turn away when who was trained by EVN as an energy advisor. someone is in need. Roswitha Budin hasn’t had She explained all the possible energy saving an easy time in recent years. Her partner and the opportunities – from the right ventilation and father of her two children, Pascal and Celina, the best way to save energy on hot water to died seven years ago. There was no safety regular venting of the radiators. Specific support net: no family, few friends. Only Roswitha’s was also provided in the form of LED lamps, and determination to give her children a good home: Caritas took over some of the monthly energy “There were times when we only had two Euros payments. Budin: “My electricity and gas bills are a day to live on.” And every day the same now much lower.” Roswitha Budin must still plan agonising questions: What can I cook? How can every trip to the supermarket and keep the room I pay the rent? But still the same willpower: I can temperature moderate during the winter – and make it. For myself and my children. hope none of the appliances break down. But she knows: she can also make it in the future. Advice and help. And then the electricity and gas bill arrived: desperation. Roswitha turned www.evn.at/tips-to-save-energy

EVN Full Report 2012/13 11 Sweet success Zadar (Croatia). Tvornica Kruha, the largest bakery in Dalmatia, has switched over from heavy fuel oil to natural gas.

The largest bakery in Dalmatia. Anðela supplies. Production manager Zdenko Juki´c: Bajlo, one of the managers of the Tvornica “All our ovens are now operated with natural Kruha commercial bakery in Zadar, is visibly gas. We didn’t believe we could save this much proud of the new production facility that in fuel costs. The first figures show that we are opened several months ago on the outskirts of now paying 50 per cent less for energy.” For this harbour city: “We visited the new facilities example, we eliminated the enormous storage built by a number of large bakeries – especially costs connected with heavy fuel oil. “And, so in Austria. And we learned a lot. I think I can say far, we haven’t had a single interruption in we now have a similar standard.” our natural gas supplies.” The fact that the conversion to natural gas is also good for the Natural gas instead of heavy fuel oil. The environment is another chapter in this success new production facilities are state-of-the-art story. and flooded with light. Everything reflects the latest technological standards. Also the energy www.evn.hr

12 EVN Full Report 2012/13 Close to the customer — EVN in Croatia

EVN Full Report 2012/13 13 Quality of life for Vilnius Vilnius (Lithuania). Residents of the Lithuanian capital can now breathe easier thanks to a high-tech sludge treatment plant.

14 EVN Full Report 2012/13 Close to the customer — EVN in Lithuania

Jonas Klebonas (left) Control center of the sludge treatment plant (below)

Lots of problems, one solution. Jonas Klebonas, chief engineer at Vilniaus vandenys, the municipal water supply and wastewater treatment company in the Lithuanian capital, stands on a roughly 20-metre high digestion tower at “his” sludge treatment plant. “Do you see the hills in back of our property?” he asks. “Vilnius is right behind them. You can’t imagine how many problems we had with the neighbours.” No, we really can’t. What kinds of problems are we talking about? The chief engineer: “Our plant purifies the wastewater for the entire city, in other words, for roughly 600,000 residents. The waste product, the sludge, smelt terrible. And that unpleasant smell spread beyond the hills all the way to Vilnius.”

Sludge turns into fertilizer – and energy. That offensive smell is now a thing of the past. To be more precise: it stopped being an issue on 6 July 2012. On that day, the sludge treatment plant built by EVN’s subsidiary WTE started operations. For non-technicians, the complexity of this 60 million Euro project, which processes 62 tonnes of sludge every day, isn’t easy to understand: The sewage sludge from the wastewater purification process is pre-thickened with high-performance decanters and pumped to the thermal hydrolysis aggregate. Then it is transferred to digestion towers – where biogas is produced and used for energy generation – and the sludge is finally dehydrated. Sounds complicated. And it actually is. This is real high- tech at work. Jonas is enthusiastic about the results: “At the end of this process, the sludge has been reduced to roughly one-tenth of its original volume. And is perfectly hygienic. We can use it as agricultural fertilizer without thinking twice.” He now points once more toward Vilnius: “And above all: there is no more offensive smell.”

www.evn-umwelt.at

EVN Full Report 2012/13 15 16 EVN Full Report 2012/13 Close to the customer — EVN in Bulgaria Lifeline electricity

Plochnik (Bulgaria). In the midst of the Bulgarian Rhodopen Mountains, EVN connected a small village to the electricity network. To the delight of all its residents.

Hospitality. “We’re always happy to welcome guests.” A handful of residents assembled at the small square in the Bulgarian mountain village of Plochnik. Dimitriyka Ilieva brought her delicious home-made yeast bread. Every visitor received a piece of the warm flat loaf, which was covered with spices. This small town, which is located 1,150 metres above sea level in the Rhodopen Mountains, can be described as a miniature paradise. If paradise doesn’t have a supermarket. Or a movie theatre. Or a restaurant. And not even paved roads. Because this paradise in the Bulgarian mountains is different: simple houses, small gardens with some fruit trees, colourful flowers that are defying the first snowflakes and the cool autumn wind. But above all: genuine, heartfelt hospitality.

Happiness and praise. The trip to Plochnik was a real adventure. The last five kilometres were covered in a jeep (at walking speed) over a forest path. “It’s too bad EVN doesn’t build Electricity means quality of life for Dimitriyka Ilieva. roads. Then we would have one,” joked Vasil Like all the other residents Vasilev, who invited us into his small home. Here she has to go at least five everyone is happy with EVN. Vasilev: “When kilometres to the next grocery store to shop for EVN connected us to the electricity network her daily needs. four years ago – as the last village in the Plovdiv region – it was a holiday.” Dimitriyka adds: “I couldn’t bake bread like this before – without electricity. Thanks to EVN, there has been a huge improvement in the quality of life.” This investment of nearly 350,000 Euros needs to be celebrated. With a glass of Mastika. And a big smile.

www.evn.bg

EVN Full Report 2012/13 17 Catalysts for Europe Skopje (Macedonia). Johnson Matthey’s catalyst plant in Macedonia is one of the company‘s most successful. Also because of its smooth and stable energy supply.

18 EVN Full Report 2012/13 Close to the customer — EVN in Macedonia

Jatin Thakrar manages the Johnson Matthey catalyst plant in Macedonia.

A picture-book success story. Jatin Thakrar is a very busy man. This managing director of the British catalyst producer Johnson Matthey on the outskirts of the Macedonian capital Skopje has set up a plant in only two years that already ranks among the best in this international group. Five million catalysts are exported throughout the European Union every year. “There is hardly a vehicle make or model that doesn’t include our products,“ explained this manager with Indian roots who was born in Uganda and grew up in Great Britain.

Stable electricity supplies. This plant, which has 450 employees, is closely monitored. The work involves valuable materials like platinum as well as sensitive know-how. But what good does all this do if the energy-intensive production process doesn’t run smoothly? “Of course, that’s right“, commented Jatin Thakrar. His opinion of EVN, which has been a partner of Johnson Matthey in Macedonia from the very beginning: “The electricity supply functioned very efficiently from day one. And if there are any problems or questions, the people at EVN are always ready to help.“ In other words, Jatin Thakrar doesn’t need to worry about stable energy supplies. He can turn his attention to further expanding this successful business in Macedonia. Three days after our visit, he opened a newly built, EUR 60m production hall. And the 200 new employees can also rely on energy supplies from EVN.

www.evn.mk

EVN Full Report 2012/13 19 Thank you, sun! Zwentendorf (Lower Austria). Active climate protection and sound returns: public participation models make both possible. And are in step with the times.

Active environmental protection. The Gegenbauer family travelled from their home in the northern Wald- viertel district to proudly show us “their” photovoltaic panels, which were financed through a public participation model and are now operating on the grounds of Zwentendorf, an atomic power plant that never started operations. “A place full of history,” commented Robert in allusion to the legendary referendum in 1978 that prevented the start-up of the nuclear reactor. His daughter Nadja, 14, explains that she has already made a presentation on the subject of atomic energy in school. Unusual, no? “Not at all!” smiled Robert Gegenbauer. “We’re a family with a strong interest in energy issues, environmental protection and sustainability.” Perhaps that’s because they live in a particularly beautiful part of Lower Austria. Or – as Renate Gegenbauer added – when you have children, “subjects related to the future play a more important role.” In line with this philosophy, the Gegenbauers have also installed photovoltaic equipment at their own home near Waidhofen/Thaya.

The family as part of the energy turnaround. In 2012, the Gegenbauers purchased ten modules at Zwentendorf for roughly 3,000 Euros. Robert Gegenbauer: “Through this investment, we want to make an active contribution to climate protection.” And based on the current low level of interest rates, a return of slightly more than three per cent is also not bad. He continued: “As an investor, a professional company like EVN offers me substantial security.” Yes, the Gegenbauers are happy with their investment. Or as Renate said before they left: “You can’t just talk. You also have to act.”

www.evn.at/photovoltaics www.evn.at/public-participation-model

20 EVN Full Report 2012/13 Close to the customer — Photovoltaic energy

EVN Full Report 2012/13 21 More than enough water for everyone! Bisamberg/Korneuburg (Lower Austria). Thanks to water from Tulln, a trip to the Florian Berndl Pool is loads of fun.

A pool without water? The Florian of up to 300,000 litres. Every single day.” But Berndl Pool, which is operated jointly by the EVN took up the challenge. communities of Bisamberg and Korneuburg, has undergone a nine million Euro overhaul A balance between regions. The Berndl during the past three years. The bad news Pool was connected to the transport pipeline arrived only a few months before the reopening from Tulln, and the water now comes directly in early summer 2013: the well that previously from the high-quality well fields in Palt near supplied this popular attraction with ground Göttweig and Mollersdorf near Tulln. Crystal water no longer met hygiene standards. What clear and perfectly clean. With peak volumes next? Berndl Pool managing director Ulf Seifert: of up to 12 litres per second. Seifert, relieved: “EVN was our first contact.” Since a pool needs “Everything is working smoothly.” A fact that enormous quantities of water at peak times is not only appreciated by the schoolchildren – and this pool has up to 5,000 visitors a day doing their lengths … during a hot summer – this was no easy job. Seifert: “We have to expect water consumption www.evn.at/water

22 EVN Full Report 2012/13 Close to the customer — evn wasser

EVN Full Report 2012/13 23 Statement by the Executive Board

Dear Ladies and Gentlemen,

The 2012/13 financial year brought a wide range of challenges for EVN. On the one hand, the effects of the financial crisis continued to influence the economic environment in Europe. The related developments had a particularly severe impact on the so-called peripheral countries, which were faced with high unemployment and recession. This situation was intensified by political uncertainty, above all in Eastern and South Eastern Europe. On the other hand, factors such as the high feed-in of renewable energy from windpower and photovoltaic equipment led to distortions on the energy markets and to price declines on the electricity exchanges.

In this challenging environment, EVN again demonstrated its high sense of responsibility toward its customers. We see ourselves as a quality provider who places top priority on supply security and can offer a full range of services from a single hand. We deliver energy in the form of electricity, natural gas and heat, we distribute clean drinking water to our customers and are also active in the provision of cable TV and telecommunication services. Our activities as a project devel- oper and operator in the environmental business make an important contribution to improving supply and environmental standards in many European countries.

Parallel to this customer orientation, which we would like to demonstrate with numerous examples in this report, EVN also has a responsibility to protect its economic success. The 2012/13 financial year was significantly influenced by the above-mentioned external factors. Revenue declined by 3.2% to EUR 2,755.0m. EBITDA fell by 3.6% to EUR 457.6m, and EBIT was 2.1% lower at EUR 218.5m. A sharp drop in financial results reduced Group net profit by 41.2% year-on-year to EUR 114.7m.

Several factors were responsible for the EUR 74.6m reduction in financial results to EUR –38.1m. The negative spread between natural gas procurement and sales prices and offtake commitments of EconGas resulted in a negative contribution of EUR 19.7m for EVN. WEEV Beteili- gungs GmbH, which holds the Verbund shares purchased during 2010 in connection with the capital increase, recorded an impairment loss of EUR 29.6m on the market valuation of these shares. The sale of the 50% stake in Devoll Hydropower ShA to the previous partner Statkraft A.S. had a negative effect of EUR 27.6m on earnings. However, the decision to sell this investment also eliminates future capital contributions to finance the project and will therefore have a positive influence on EVN’s cash flows in the coming years. Shkodra Region Beteiligungsholding GmbH, which holds the investment in the Ashta hydropower plant in Albania, recorded a negative earnings contribution of EUR 20.4m that was also reflected in financial results.

In addition to addressing the operating challenges brought on by the 2012/13 financial year, we continued to pursue the implementation of our strategy to consolidate the existing areas of business. This strategy is based on an integrated business model that allows us to cover the entire energy sector value chain – from production to network operations, the delivery of energy to end customers and energy services. The resulting depth in added value also expands our range of earnings sources and leads to the diversification of risk, and is rounded off by our environmental services business and strategic investments.

Our efforts to meet the demands created by decentralised generation from renewable energy sources involve investments in the expansion and improvement of our networks. Our strategic focus in this area also includes the further development of renewable energies. We see interesting

24 EVN Full Report 2012/13 the testphase,whichwillendwith thetransitiontocommercial operations. fired powerplant.Commissioningatthisfacilityproceeded during2012/13andhas since entered required. Supplysecuritywillalsobestrengthened bythestart-upofDuisburg-Walsum coal- capacity eachyearthroughGermany anddeliverelectricityas itsnaturalgasplantsforsouthern created opportunities.Over thenextthree winterhalf-years, EVNwillprovide 785MWofreserve protect oursectoraldiversification. mental servicesbusiness,weaimtoimplementselectedprojects atsuitablelocationsandthereby our sustainablebusinessmodelandbyinvolvinglocal residents inthe site decisions.Intheenviron- opportunities forsuchprojects inLowerAustria,whichwewanttorealise incorrespondence with wind turbineswith atotalcapacityof24MWare alsounderconstructionin Prellenkirchen together measur nine majorEuropean utility providers presented theEuropean Parliamentwithacatalogueof markets, seeanurgentneedforastructuralchangeinthemarket design. renewable energy.We welcomethisinitiativeand,duetotheon-goingdistortionsinenergy energy prices.Theyalsocalledforthedevelopmentoflong-term conceptsofsubsidyschemesfor year. At a site near Deutsch-Wagram, EVNstarted operations with its 100 The expansion of windpower The current situation intheenergymarkets Discussions attheEuropean level es toensure supplysecurity, reduce greenhouse gasemissionsby2030andlimit therisein represented another focal point of our activities during the past are toward nowturning the marketdesign.Inautumn 2013, has raisedanumberofchallenges,butalso th wind turbine. Eight Statement bytheExecutiveBoard

EVN Full Report2012/13 25

EVN Group with a partner and are scheduled to come on line during the winter season in 2013/14. EVN will then have a total of 14 wind parks with a combined capacity of 213 MW in operation, which can supply more than 100,000 households with environmentally friendly electricity.

In the field of photovoltaics, we introduced a public participation model for our customers in Zwentendorf during 2011/12. The high demand for this investment led to a second public participation model, which is currently being realised in Lower Austria.

Our activities in the natural gas network include the protection of supply security through two major projects to eliminate capacity bottlenecks and replace existing pipeline systems. The Südschiene natural gas high-pressure pipeline has been in operation since autumn 2011. The 150 km Westschiene pipeline is now operational over a length of 60 km; 70 km are currently being filled with natural gas and the remaining section is under construction. The Westschiene connects natural gas-fired power plants and end customer markets with the natural gas storage facility recently built by Rohölaufsuchungs AG in Upper Austria.

Projects in the heating business included the start-up of the biomass district heating plant in Steyr, which was constructed together with Energie AG Oberösterreich. This plant can supply electricity and heat to 12,000 households. With over 60 biomass plants, EVN is the largest supplier of natural heat in Austria.

In South Eastern Europe, the price increases in 2012 were followed by tariff decisions by the regulatory authorities that reduced the end customer prices for electricity in Macedonia and Bulgaria without a corresponding adjustment to procurement prices. The Bulgarian regulatory authority also introduced a new mechanism to calculate compensation for the added costs of renewable electricity as of 1 August 2013, but this change is not expected to result in additional interim financing costs for EVN. EVN’s preceding claims were recognised as receivables following a confirmation by the regulatory authority that EVN should generally be compensated for the uncovered costs. These claims are also being pursued in arbitration proceedings initiated with the International Centre for the Settlement of Investment Disputes, an institution created by the World Bank. We raised our coverage ratio in Macedonia during the reporting year by taking over the operation of seven revitalised small hydropower plants, which were leased to third parties up to January 2013. EVN now operates 11 small hydropower plants with a total capacity of 48 MW and a planned electricity generation volume of 130 GWh per year in Macedonia.

EVN’s environmental services business and its consortium partners opened one of Europe‘s largest wastewater purification plants in Warsaw during the reporting year. This facility has the capacity to service 2.1 million residents. EVN is currently working on international projects with an order volume of EUR 542.1m. The realisation of the environmental projects in Moscow has been delayed, and negotiations are currently in progress with the city of Moscow over the amendment of the project structure for the sodium hypochlorite plant and the waste incineration plant no. 1. EVN assumes these investment contracts will be fulfilled.

The activities of the Environmental Services Segment also cover water supplies in Lower Austria, which are a particularly important focus of our work. In 2012/13, we took over the management and operation of drinking water pipeline networks for further municipalities. EVN now supplies drinking water, directly and indirectly, to over 500,000 customers in Lower Austria. Our efforts in this area concentrate on the protection of local supply security and quality improvements through a reduction in the hardness of the water.

26 EVN Full Report 2012/13 tant factorstoensureoursustainedsuccessinthiscompetitiveenvironment. customer base and the high customer satisfaction we enjoy as a quality provider as the most impor course and increase its focus on the core markets. We believe in our strengths and see our balanced government and progress on the projects in Moscow. EVN will continue to pursue its consolidation Bulgarian the with proceedings arbitration the of development also the by could influenced profit significantly be net Group years. recent in recorded level the to return a prevent nonetheless, should therefore exceed the results for 2012/13. The current distortions in the energy markets will, profit group and non-recurring, are 2012/13 in results financial reduced that effects period prior for expectations our earnings from our operating backdrop, business in 2013/14 are this therefore lower than in the Against previous year. The markets. energy the in conditions reflect to design ronment currently faced by utility providers. We therefore see an urgent need to adapt the market mendation to the 85 reporting year, above all on financial results, were non-cash items. We will therefore make a recom with a continuous dividend policy. The prior period effects that had a negative influence during the classified thecompany’soutlookasstable. and ratings grade investment A3 and BBB+ EVN’s confirmed Moody’s and Poor’s & Standard cies a of issue the through promissory note loan with a volume of EUR 121.5m and terms of up to 18 years. The rating agen financing long-term obtain to ability our and lenders of confidence EVN the by held shares treasury The shares. own represented approximately 1.0% its of share capital as of 30 September 2013. We also demonstrated repurchase to 2012 January 19 on Meeting and strongcommitment,whichwillalsoformthefoundationfor oursuccessinthefuture. their loyalty. Our thanks also go out to the men and women who work for EVN for their dedication with us reward and areas business of range wide a in expertise our on rely who customers many the thank to like also would We future. the in us accompany to continue will you hope and EVN of anattractivedividendpolicywhilealsoprotectingEVN’ssoundfinancialposition. continuation the underscores and 3.7% of yield dividend a represents this 2013, September 30 of dividend equal to the previous level of EUR 0.42 per share. Based on the share price of EUR 11.29 as

found inthecorporategovernance reportstartingonpage51. Detailed informationonthemembers oftheExecutiveBoardandtheirresponsibilitiescanbe In conclusion, we would like to thank you for the trust the for you thank to like would we conclusion, In year financial 2013/14 the for outlook The in place you trust The markets, capital the On

Spokesman oftheExecutiveBoard Peter Layr th Annual General Meeting on 16 January 2014, calling for the distribution of a as our shareholders our EVN AG as EVN utilised the authorisation provided by the 83 the by provided authorisation the utilised EVN

is influenced by the challenging operating envi- operating challenging the by influenced is Member oftheExecutiveBoard Stefan Szyszkowitz is a distinction we want to recognise to want we distinction a is you place in us as shareholders of shareholders as us in place you rd Annual General

- - - Statement by the Executive Board Executive the by Statement

EVN Full Report 2012/13 Report Full EVN 27

EVN Group About this report

EVN’s1) claim to be a responsible energy and environmental Sustainability reporting according to GRI services provider is not only demonstrated by its activities across This report meets the requirements of application level A+ of the entire value chain, but also by the equal importance it places the Global Reporting Initiative (GRI), Version 3.1, and includes on society, the environment and the economy. A central element additional GRI indicators for the electricity industry (Electric of its integrated business model is the well-balanced treatment Utility Sector Supplements). Plans call for the application of all stakeholder groups. This integration is also reflected in of GRI Version G4, which was released in May 2013, for the the Group’s reporting. Publications up to the 2008/09 financial 2013/14 financial year. EVN’s objective is to provide detailed year included an annual report and a sustainability report, which information on the subjects that are of key importance to its was developed from the environmental report first released in stakeholders. This full report does not include information that 1990. The first so-called “full report“ was published in 2009/10 is not particularly relevant for stakeholders and the industry and has been continuously improved since that time. It reflects without reducing the informative value or transparency. The EVN’s goal to meet the widely diverse information needs of indicators that are not applicable to EVN are designated as such investors and analysts, employees, customers and suppliers, in the GRI Content Index on the end-cover flap of this report. The local residents, NGOs, politics and public authorities as best as Environmental Protection and Controlling Department and the possible. The many aspects of sustainability, including the CSR Accounting Department were responsible for the data collection programme, are given equal treatment with financial and corpo- and calculations. The data are based on the GRI indicator pro- rate governance information in the full report. This report also tocol, which was applied as completely as possible. Compliance qualifies as an annual communication on progress as defined by with this reporting standard and the related criteria was reviewed the UN Global Compact and meets the high, “Advanced Level” and confirmed by Lloyd’s Register Quality Assurance (LRQA) (see standards defined by this strategic policy initiative. page 217).

The content of this report is based on legal requirements, the EVN also believes in equal opportunity in its internal and information needs of stakeholders and the most important areas external publications, including this full report. Any statements of activity in the CSR materiality matrix (see page 33). In devel- made in the male form to improve readability refer equally to oping this matrix, EVN’s internal and external stakeholders iden- both genders. tified the areas that represent the greatest impact, opportunities and risks for the company. The CSR materiality matrix is evalu- The editorial deadline for this report was 27 November 2013. ated on a regular basis to incorporate new trends and subjects that are relevant for the various stakeholder groups. The next 1) Hereinafter referred to as “EVN”, meaning the EVN Group including all its subsidiaries. stakeholder survey is scheduled for the 2013/14 financial year. For further information on the scope of consolidation Scope of the report of the EVN Group see page 111ff. EVN’s financial year begins on 1 October and ends on 30 Sep- For information on the Global Reporting Initiative, tember. This report is based on EVN‘s scope of consolidation as go to www.globalreporting.org. of 30 September 2013, which includes EVN AG as the parent For the GRI Content Index, see the website company as well as 63 fully consolidated and five proportionately www.responsibility.evn.at > Service. consolidated companies. In addition, 18 companies in which EVN holds an investment are included in the consolidated financial statements at equity. A detailed listing of EVN’s investments is provided beginning on page 167. Specific references are made in cases where disclosures do not refer to all companies in the scope of consolidation or there are significant changes in reporting limits compared with earlier years. EVN is working to continuously expand data collection for the GRI-relevant indicators, whereby the goal is to include all Group companies in this process.

28 EVN Full Report 2012/13 Business overview Bulgaria andelectricitygenerationinMacedonia.InCroatia, EVN mented bythegenerationandsaleofheattoendcustomersin customers inBulgariaandMacedonia.Thisportfolioissupple- the operationofelectricitynetworksand sales toend for municipalities,privateandbusinesscustomers. and telecommunicationnetworksavarietyofenergyservices portfolio issupplementedbytheoperationofcabletelevision centrated onthetransmissionandnetworkstages.Thisproduct sion todistributionanddisposal,whilethegasbusinessiscon- electricity andheatvaluechainfrom generationandtransmis- workforce of7,497onaverage. a in 21countriesandemployed,thefinancialyear2012/13, Austria, thelargestprovince inAustria.EVNcurrently operates mental services company. Its headquarters are located in Lower EVN’s energybusinessinclude activitiesintheinternational InitshomemarketofLowerAustria,EVNcoverstheentire listedenergyandenvironEVN isaleading,international, - Corporate profile grated intoEVNin2003.hasrealised over100 environ German environmental servicesgroup WTEwasacquired andinte- oped asecondbusinessinthearea ofenvironmental services.The sale markets. sources aswelltradinginelectricityandnaturalgasonwhole- procurement ofelectricity,naturalgasandotherprimaryenergy sells naturalgastoendcustomers.Otheractivitiesincludethe tal pr natural gasstoragethrough its50.03%investmentinRAG. water to502,100residents in671cadastralcommunities. which is directly or indirectly responsible for supplying drinking Services Segmentalsoincludesthebusinessactivitiesofevnwasser, above all with a view to long-term operations. The Environmental special focusonenvironmental compatibilityandsustainability, thermal wasteutilisation.Theseprojects are carried outwitha equipment fordrinkingwatersupply,wastewaterdisposaland supplier fortheplanning,constructionandoperationoftechnical Together withitsactivitiesintheenergysector, EVNhasdevel- EVN isalsoindirectly involvedinoilandgasexploration ojects andcompiledwide-rangingexpertiseasafull-service Drinking andwastewaterprojects

Under construction Completed large-scalepr Newly acquir Regional location Group headquarters Power stationunderconstruction Waste incineration Energy supply EVN presence EVN Full Report2012/13 ed ojects men- 29

EVN Group Environmental Other business Energy business services activities business

Energy Network Energy Supply Strategic Environmental Generation Trade and Infrastructure South East Investments and Services Supply Austria Europe Other Business

An integrated business model and state-of-the-art infrastruc- Energy generation capacity ture makes it possible for EVN to offer electricity, natural gas, EVN has a total electricity generation capacity of 2,037 MW. heat and drinking water as well as wastewater treatment and In Austria, 431 MW of generation capacity from renewable thermal waste utilisation from a single hand. energy sources are under the Group’s ownership: – 111 MW of hydropower from five storage power stations and In 2012/13, EVN generated 41.8% of its revenue outside 67 run-of-river power stations (thereof 63 in Lower Austria Austria (previous year: 42.1%). and nine in Styria) – 184 MW from 100 windpower plants in 13 windparks Group structures and operating focus – 0.2 MWp from a photovoltaic power plant in Zwentendorf The corporate structure of the EVN Group is based on three – 13 MW from three biomass-fired combined heat and power areas: the energy business, the environmental services business plants and other business activities. EVN has defined six operating segments that also reflect IFRS reporting requirements: Generation, The Group’s own production of renewable energy is supple- Energy Trade and Supply, Network Infrastructure Austria, Energy mented by electricity purchasing rights for 123 MW from the Supply South East Europe, Environmental Services and Strategic Danube hydropower plants in Melk, Greifenstein and Fr eudenau, Investments and Other Business. the investment in the Nussdorf hydropower plant in Vienna and the investments in 13 Verbund Inn River power plants in Germany. For a list of EVN AG’s main subsidiaries and the EVN Group’s investments, see page 89 and beginning In addition, the portfolio of EVN also includes more than on page 167. 60 biomass plants in Lower Austria, which make EVN the largest For details on segment reporting, see page 90. natural heat supplier in Austria.

EVN power generation capacities MW 30.09.2013 30.09.2012 Renewable energy 550 508 thereof hydropower1) 307 291 thereof windpower 200 191 thereof photovoltaics 3 3 thereof biomass 13 10 thereof other renewables2) 26 13 Thermal energy3) 1,487 1,487 thereof natural gas 1,088 1,088 thereof coal 398 398 Total 2,037 1,994

1) Incl. purchasing rights from the Danube hydropower plants in Melk, Greifenstein and Freudenau, the investments in the hydropower plants Nussdorf in Vienna and Ashta in Albania as well as the investment in Verbund-Innkraftwerke GmbH 2) Includes two sludge-fired combined heat and power plants in Moscow. 3) Gross amounts incl. cogeneration and combined heat and power plants in Austria and Bulgaria

30 EVN Full Report 2012/13 in % EVN electricitygenerationbythermalenergysource in % EVN heatgenerationbyrenewable energysource in % EVN heatgenerationbythermalenergysource 1) 2010/11 001 2011/12 2010/11 001 2011/12 2010/11

64.6 72.8 27.2 T hereof 291,844MWhowngeneration inBulgaria(co-generation plant) 26.1 26.0 37.0 45.6 17.9 9.7 1.2 1.1 2011/12 54.3 73.1 26.9 25.8 37.1 26.6 38.2 14.2 9.4 1.1 1.9 2012 2012 2012 73.6 47.2 26.4 /13 /13 /13 25.4 28.4 35.2 37.5 1 2 11. 7.7 1.0 0.8 Natural gas Coal Other (wasteutilisation) Natural gas Fuel oil incineration Steam from waste heat andpower Heat from combined Biomass 1)

ojects intheEnvironmental ServicesSegmentpreviously designatedas 1) thermal wasteutilisationplantwithaheatcapacityof60MW. electrical capacity in Bulgaria and, in Moscow, EVN operates a – – – – – 119 MWfrom renewable energysources: capacity of210MWwhichisalsousedforenergy Austria aswellathermalwasteutilisationplantwithheat and twogas-fired combinedcycleheatandpowerplantsinLower power plantreserves. EVNalsooperatestwoco-generationplants Kor in Dürnrohrandtwogas-fired powerplantsinTheissand with atotalcapacityof1,487MW–coal-fired powerplant

(Public PrivatePartnership). BOOT projects (Build,Own,Operate, Transfer) are nowreported asPPPprojects Pr icator: Installed capacity (EU1) icator: Installed GRI ind An overviewofEVN’ is provided onpage 38. EVN alsooperatestwoco-generationplantswith105 MWof 3 MWpfr plants withinthecontextofaPPPmodel 26 MWfr 26 MWfr 48 MWfr 16 MWfr EVN’ In LowerAustria,EVNoperatesthermalenergypowerplants 2) 1) in % EVN electricitygenerationbyrenewable energysource 2010/11 neuburg. The two gas-fired power plants currently serve as

35.4 T renewable energy sources Incl. electricitygener hereof 135,314MWhowngeneration inMacedonia(hydropower plants) s electricitygenerationcapacityoutsideAustriaincludes 21.8 6.6 7.0 om 11hydropower plantsinMacedonia om twophotovoltaicpowerplantsinBulgaria om theAshtahydropower plantproject inAlbania om eightwindpowerplantsinBulgaria om twosludge-fired combinedheatandpower 2011/12 45.7 ation from biomass,photovoltaicsandother 28.9 10.0 6.8 Business overview s current strategic projects 2012 52.8 EVN Full Report2012/13 /13 36.3 9.6 6.9

—profile Corporate Hydropower Windpower Other renewables 1) inMoscow generation.

EVN Group Apart from maintenance work to ensure technical safety, the GRI indicator: Total length of long-distance and power plant Dürnrohr was taken out of service for less than one distribution lines (networks) (EU4) day in the financial year 2012/13. GRI indicator: Efficiency of long-distance and distribution lines (EU12) GRI indicator: Average availability of power plants (EU30) EVN’s environmental services business The average efficiency level of EVN’s energy production from The EVN Environmental Services Segment provides infra- natural gas in Austria and Bulgaria (fuel utilisation as a per cent structure services in the areas of thermal waste utilisation, of energy production) equalled 51.4%1) in 2012/13. The power drinking water supply and wastewater treatment. The take plant in Dürnrohr is part of the district steam and thermal heat- over of the German environmental services group WTE in 2003 ing network, and the calculation of its operating efficiency is expanded the segment’s know-how in water supplies to include therefore not possible. long-standing expertise in wastewater disposal. The activities of 1) Weighted by capacity the EVN Environmental Services Segment cover the planning, construction, financing and operation of individually designed GRI indicator: Average efficiency in production (EU11) plants for municipalities. EVN’s operational involvement in these Information on direct and indirect emissions is provided on projects differs and can include general contractor responsibili- page 186f of this report. ties, management and/or operator models where EVN is not only responsible for planning, construction and operation but also The EVN network for financing. EVN has also operated a thermal waste utilisation EVN operates a 150,433 km network, of which 90% are used plant in Zwentendorf since 2004 and a similar plant in Moscow to supply electricity. Because of its state-of-the-art features and since 2007. quality, regulatory authorities regard EVN as an industry benchmark. In Bulgaria and Macedonia, the acquisitions carried out in WTE treated approximately 168 million m³ of wastewater in 2005 and 2006 were followed by extensive investments in the 2012 with a median purification performance of 86.6%1), which modernisation and expansion of the network infrastructure to represents service for roughly 2.2 million residents. The sewage improve the quality and security of supply. sludge from this process is used in part for agricultural applica- tions and compost production, while most of it is deposited in a The massive expansion of renewable energy, in particular landfill. The Istanbul city government also receives support for windpower and photovoltaic plants, has created a substantial the operation of the wastewater purification plants previously strain on transmission lines because of the fluctuations in energy built by WTE. These plants purify the wastewater from approxi- generation volumes. Investments by EVN in the coming years will mately two million residents. therefore focus on the expansion and stabilisation of these net- 1) Average value over the parameters for chemical oxygen requirements, works. biological oxygen requirements, total nitrogen and total phosphorous

EVN’s electricity network losses in Lower Austria are within In the area of drinking water supplies, the subsidiary the average range for Austria. In Bulgaria, the on-going invest- evn wasser operates a 2,361 km pipeline network that is fed ments to improve network quality since market entry in 2005 by 104 wells in protection zones covering 339 ha. In the finan- have reduced network losses from approximately 17% to cial year 2012/13, a total of 502,100 customers were directly approximately 11%. Network losses in Macedonia have fallen or indirectly supplied with 26.2 million m³ of drinking water. from approximately 24% to approximately 17% since market evn wasser handles cross-regional and local water supplies entry in 2006. and constructs and operates wells and transport pipelines. It also ensures the continuous functioning of the water network

Network lengths – Energy1) km 30.09.2013 through services such as pressure regulation, treatment and Power grid 135,900 repairs. Natural gas grid 13,863 Heating grid 670 Network length in total 150,433

1) Further details are not provided due to current company-specific constraints and internal regulations.

32 EVN Full Report 2012/13 strategy toestablishandmaintainastr important very important to stakeholders since 2012. steering committeeoftheAustrianGlobalCompactnetwork Compact inSeptember2005.EVNhasalsoservedonthe tion wasalsoreflected inEVN’s decisiontojointheUNGlobal responsibility forfuture generations.Thisfundamental orienta- account. Businessactivitiesare conductedwithaviewtoward on theregional economyandtheenvironment are takeninto resources. Not only the needs of people,but also the effects sibility forsociety,protecting theenvironment and conserving guarding the company’s economic success, accepting respon- TV, telecommunicationsandenvironmental services. by providing reliable suppliesofelectricity,gas,heat,water, cable makes animportantcontributiontoitscustomers‘qualityoflife long term.EVNviewsitself asafull-serviceutilitycompanythat Europe andSouthEastern overthe markets ofCentral,Eastern From itsheadquartersinLowerAustria,EVNpursuesa Corporate strategy Management‘s decisionsandactions are focusedonsafe- important EVN materialitymatrix In-house consumption of resources Climate protection Social commitment Environment protection ong positioninselected Stakeholder dialogue Integration SEE Human rights Fair prices impact, opportunitiesandrisksforthecompany. tant strategicareas ofactivity.Theseareas represent thehighest stakeholders and shows EVN’s and external internal most impor on thecapitalinvestedbyitsshareholders. attractive dividend policy, EVNworkstoachieveasuitablereturn is reflected inthepriceofEVNshare. Inconnection withan designed toensure thattheincrease inthevalueof the company and othercountries.Activetransparent communicationsare of synergiesbetweenthevariousareas ofbusinessinAustria interest groups. Thisorientationissupportedbytherealisation can onlybeachievedthrough theintegrationofallrelevant the targeted,continuousincrease inthevalueofcompany fair compensationandadvancementopportunities. best possibleworkingenvironment with,attractiveconditions, expertise ofemployees.EVNwantstooffer theseemployeesthe ucts andservicesare basedonthestrong commitmentand high-quality servicesatcompetitiveprices.Thesesuperiorprod- Business overview The EVNmaterialitymatrixwasdevelopedtogetherwith EVN iscommittedtosustainablemanagementandbelieves For itscustomers,EVNisareliable partnerthatoffers Resource conservation Prevention of corruption Responsible employer — Corporate profile, Corporatestrategy increase inshareholder value Security ofsupply EVN Full Report2012/13 Sustainable very importanttoEVN 33 -

EVN Group EVN environmental policy statement

Minimisation of environmental impact Landscape conservation We seek to minimise the environmental impact of our In the course of its energy generation and transmission activities and thus make an important contribution to the activities, EVN pays close attention to landscape conser- maintenance of the general ecological balance. vation. Local network cabling projects and optimum line routing are two examples of this policy. Sustainable development We feel an obligation to the principle of sustainability and Waste management adopt a responsible approach to the resources entrusted The flows of material within our company are carefully to us. Our aim is to secure the long-term quality of the monitored and controlled, facilitating waste prevention, environment for future generations. We make every effort recycling and correct disposal, in that order. The company to allocate equal attention to ecological, economic and also applies ecological criteria when selecting its material social objectives. and equipment suppliers, and waste disposal contractors.

Improved environmental performance Energy consulting EVN ensures compliance with all statutory requirements Efficient, customer-oriented energy consulting is a matter through the use of the very latest technology. In addition, of key importance to EVN. In addition to economic con- the company is committed to constant improvements in the siderations, this also involves ecological aspects. “Energy standard of its environmental performance. Accordingly, saving” is one of the core principles of EVN consulting. plants causing emissions are accredited according to EMAS and ISO 14001 and subjected to annual external audits. Workforce motivation The comprehensive range of tasks for an ecologically State-of-the-art environmental engineering oriented company is so wide that only well-informed and All of EVN’s energy generation plants are of state-of-the- motivated employees can accomplish it. Therefore, EVN art design. In this connection, the environmental upgrad- regards staff training and identification with the com ing of existing capacity and installation of new plants at pany’s ecological policy as a major priority. established locations are of special importance. At the same time, the company endeavours to husband resources through the highest possible efficiency levels and further the development of innovative, environmental protection technologies.

Resource conservation and climate protection Resource conservation constitutes a yardstick for our activities. Through increased efficiency, the forced expansion of renewable energy sources and waste treatment, we want to make a valuable contribution to the climate protection targets of the EU, the Austrian Republic and the federal province of Lower Austria. EVN employs a flexible generation mix comprised of energy from water, heat and renewable sources. The expansion of electricity and heat generation from renewable sources is a priority for EVN. Electricity generation from thermal energy sources will continue to make an important contribution to security of supply as well as network stability and will be conducive to the integration of renewable sources in the systems.

34 EVN Full Report 2012/13 – success factorfor thedevelopmentofbusiness at EVN. teria foraninvestment graderating,whichis viewed asakey gearing ratio.Strictcapitaldiscipline isrequired tomeetthecri- optimise cashflowandallow EVN tomaintainanappropriate ation oftherelated risks.Theseconsolidationmeasures should selected projects willbeimplementedbasedonanexact evalu- work definedbypolitics.Inthe environmental servicesbusiness, vidual projects isdependent onthemunicipalplanningframe- Austria will be expanded, whereby the realisation of the indi- generation capacity in Lower be further optimised. Windpower Macedonia andGermany,thetimingofactivitiesinCroatia will consolidation oftheenergybusinessinLowerAustria,Bulgaria, for thecompany’s businessactivities.Inadditiontotheplanned the existingbusiness.Deeproots inLowerAustriaformthebasis

– EVN aswellthefocalpointsofthisreport: – utive Board andimplementedbytheresponsible departments. of activity.Theresulting CSRprogramme isapproved bytheExec- measures andgoalsforthecontinuousdevelopmentofareas interest groups. Allbusinessunitsare involvedindefiningthe latest developmentsandincludeissuesthatare relevant forthe – –

he EVN materiality matrix, including explanations, he EVNmaterialitymatrix,including can beaccessedunder T under on page208ofthisreport andontheEVNwebsite Details onthecurr tions, work-familybalance,diversityandequalopportunity. resources, healthandworkplacesafety,opencommunica- tection ofjobs,theresponsible developmentofhuman EVN’s strategicgoalforthecomingyearsistoconsolidate Strategic orientation www.evn.at/CSR-strategy/CSR-materiality- Sustainable increase inshareholder value Prevention ofcorruption Responsible employer Conservation ofresources Security ofsupply The followingareas ofactivityrepresent thekeyprioritiesfor The EVNmaterialitymatrixisupdatedregularly toreflect the the sustainabledevelopmentofdividends. targeted growth, a value-oriented investment strategy and nomical andresponsible businessactivities,competitiveness, corporate ethics. increase transparency andcreate anincreased awareness for and procurement –allinaccordance withsustainabilitycriteria. the expansionofgenerationcapacityaswellnetwork ciency, energy-related consultingandenergyservices. resources andisconcentrated,aboveall,onincreasing effi- www.evn.at/CSR-strategy/CSR-programme ent programme canbefoundbeginning

stands foraflexiblegenerationmixand

standsforthecreation andpro- standsforallmeasures that standsforthecareful useof standsforeco- matrix

. . quality

e enable thefuture.

e are committedtocontinuityandsafety. e are fields. committedtosustainabilityinall wealsoenablethings.e donotonlytalk, e are therightcompanyforpeoplewholove he waywethinkandactencourages people. his positionoftheEVN Group ensures healthy W We ensure qualityandcorporatesuccess. We encouragepeople. services toourcustomersinthebestpossibleway. our strategy and provide energy andenvironmental from whichwegenerate energy inmind. solution-oriented way. We alwayschoosethecorrect and constructive criticism. to learnandwho–ifnecessaryalsooffer as ouremployees’development. climate are asimportant toourcorporate success growth. Each employeeensur reliable andquality conscious. Our employeesare toperform,competent, willing W W Whatever wedo,alwayskeep theenvir W W A goodatmospher T T Business overview e andapositiveworking es thatweare able toimplement EVN Full Report2012/13 —strategy Corporate

onment

EVN Group Along this consolidation route, EVN places high value on For the individual policy statements, see the CSR strategy ensuring supply security. This element is therefore given high under www.responsibility.evn.at. priority in the materiality matrix. EVN meets this challenge by The EVN Code of Conduct can be reviewed under continuously expanding and improving its energy networks in www.evn.at/code-of-conduct.aspx. line with regulatory requirements and based on the increase in For the integrity clause, see www.evn.at/integrity-clause. renewable generation capacity. Employees EVN’s goal for electricity production is a level of 30%, which EVN has grown rapidly over the past ten years and developed represents the share of electricity sales that can be met with from a regional supplier into an international corporation with internal generation and/or electricity procurement rights. This activities in 21 countries. The Group had roughly 2,000 employ- value currently equals 18.3% (2011/12: 15.5%). After the start ees before its expansion, and an average of 7,497 in 2012/13. of full operations of the hydropower plant Ashta in April 2013, a further major step to meet this goal will be taken with the start This growth has also brought substantial cultural diversity into of operations at the Duisburg-Walsum power plant. Plans also the world of EVN, which is viewed as both enrichment and an call for an increase in generation from renewable energy sources opportunity. The key values E(V)Nsure, E(V)Ncourage, E(V)Nable to 50%. In addition to the increased expansion of windpower reflect the diversity of employees and serve as motivation to keep capacity in Lower Austria, regional projects in the areas of hydro- the EVN brand promise to the many different stakeholders. power, biomass and photovoltaics will help to meet this goal. The expansion of electricity production from renewable energy The principles of human resources management are based on sources not only demonstrates EVN’s economic and ecological the equal treatment of and equal opportunity for all employees, responsibility, but also helps to ensure supply security. and support the corporate social partnership, occupational safety and accident prevention. EVN’s strategy in this area also includes Policy statements regular information for the workforce on company developments The corporate strategy of the EVN Group is supported, among and support for volunteer work in social organisations. others, by central policies such as the corporate policy statement, the environmental policy statement and the mission statement A detailed description of the principles of human for team leaders. Similar to the EVN code of conduct, these resources management is provided beginning on page 192 documents are based on internationally recognised standards of this report. and represent the sustainability principles for the entire organisation. EVN has also issued an integrity clause for suppliers, which includes guidelines for sustainable procurement and defines suppliers’ duties and responsibilities.

Employee key indicators 2012/13 2011/12 2010/11 Number of employees1) Number 7,497 7,594 8,250 thereof women % 21.9 21.6 22.8 Apprentices2) Number 46 41 55 Employee fluctuation3) % 3.2 3.2 3.0 Average employment period Years 16.1 15.9 16.0 Average age Years 43.5 43.2 43.6 Revenue per employee EUR 367,474 374,830 330,807 Sick days per employee Number 10 9 10 Cost of personnel in relation to revenue4) % 11.1 11.0 11.7

1) On full-time equivalent (FTE) basis; annual average 2) Apprentices in Austria and Germany only due to dual education system 3) Excl. departures due to Bulgarian and Macedonian redundancy programme and excluding retirement 4) The prior year figure was adjusted (see consolidated notes, note 2. Reporting in accordance with IFRS, page 108)

36 EVN Full Report 2012/13 management concept.Theresults ofthissurveyalsoledtothe serve asthebasisforpreparation ofastrategicstakeholder well-structured maintenanceofstakeholderrelationships andto taining andstrengthening goodrelationships withthese groups. ing theexpectationsofitsstakeholdersandtodeveloping,main- the on-goingsustainabilityprocess. EVNiscommittedtoidentify- effective strategiesforthecompany’s furtherdevelopmentand of EVN’s stakeholdermanagementincludethedevelopmentof to establishandmaintainacontinuousdialogue.Theactivities diversity oftheseinterest groups’ demandsandtherefore works number ofparticipatoryprocesses. EVNiswellaware ofthewide tinuous increase inthetransparency ofcommunicationsandthe investments. Thisdevelopmenthasbeenaccompaniedbyacon- years, which were characterised by expansion, growth and tries. Theinterest ofstakeholdershasgrown steadilyinrecent more intensecriticalobservationthancompaniesinotherindus- focal pointofsubstantialpublicinterest andtherefore subjectto Employees (selection) method ofinclusion EVN’s stakeholdersand Customers Suppliers NGOs Media Investors A surveywasconductedin2010toensure thesystematic, As anenergyandenvironmental servicesprovider, EVNisthe Stakeholder management Media Management Employees Supervisory Board Associations (employees andcustomersat Regional government holders survey2010,etc.) regular intervals,stake- Shareholders (Project) partners Suppliers Owners Surveys + + + + + + Government agencies Government Competition Investors Federal government Private customers Large customers Communities Customers: Project neighbours SMEs Business overview Activeand National governments frequent contact + + + + + + and departmentmanagerswiththeirstakeholders:employees, the strong relationships betweenthestrategicbusiness unit tion ofimportantsocialandecologicalissues. should alsomakeavaluablecontributiontotheearlyidentifica- to identify appropriate dialogueandcooperationpartners.It also beusedtofurtheroptimisecorporatecommunicationsand points forfuture improvements. Theresults ofthisupdatewill of activityandtheirpriorityrankingtodeterminethefocal vey in2014,whereby thegoalistoreview thestrategicareas (see page33).Planscallforanupdateofthestakeholdersur adjustment andfurtherimprovement ofEVN’s materialitymatrix customers, suppliers,partners,exter EVN AdvisoryBoard for the Environment andSocialResponsibil- munities, project mediationwithregional citizens‘initiatives, the also takestheformofworkinggroups, committeesinlocalcom- considered themostimportantinterest groups forEVN. holders withcloseandrelevant connectionstothecompanyare tions, NGOs,interest groups, scienceandresearch. Thestake- NGOs social The core ofEVN‘sstakeholdermanagementisformedby The institutionaliseddialoguewithvariousstakeholdergroups NGOs environment Ministries Working group, forum, (once ortwiceperyear Interest groups Social groups Communities Civil society: — Corporate strategy,Stakeholdermanagement annual meetings Diagram: EVN’s stakeholdergroups or more often) + + + + + + committees, expert groups (onceor rmr fe) SupervisoryBoard or more often) twice peryear Advisory EVN Full Report2012/13 + + + + + – nal organisations,associa- + + + + – – 37 -

EVN Group ity, the EVN Customer Advisory Board, the EVN Social Fund and Supply security in the gas business is supported by two major the EVN Art Advisory Board. A complaint management process projects to cover capacity bottlenecks as well as the use of exist- is also in place to address the wishes and needs of customers ing pipeline systems. The Südschiene high-pressure natural gas in a comprehensive and professional manner. Extensive com- pipeline was completed and started operations during autumn munication and cooperation between management and the 2011. In addition to the above-mentioned aspects, the 150 km works council ensure that employee-related issues are given the so-called Westschiene pipeline connects natural gas genera- necessary attention. Stakeholder relationships are also strength- tion capacity and end customer markets with RAG’s newly built ened by numerous joint initiatives and projects at the regional, natural gas storage facilities in Upper Austria. The first section, national and international level. with a length of roughly 60 km, started operations at the end Additional information is provided in the Aspect of 2012, and the filling process for the second, almost 70 km under SO1: Local communities and in the long, section started in September 2013. The third section is now Sector Supplements – Society under indicator EU19. under construction and, from the current point of view, should be operational in mid-2014.

Overview of strategic projects Financial strategy EVN’s principal strategic objective is to ensure the security of supply for all its customers. Accordingly, the top priorities include EVN’s primary economic goal is to generate high and stable building and maintaining the distribution networks and expand- cash flows from its operating activities as the basis for the ing generation capacity to create a flexible power plant portfolio. balanced use of financial resources. In addition to this internal The further development of windpower generation capacity in financing, EVN has a variety of financing sources at its disposal. the core market of Lower Austria will also remain a focus of activ- These external sources are used in line with financial goals and ities over the coming years. The construction of additional wind the Group’s financing strategy. The resulting financial strength parks in Lower Austria during 2012/13 made EVN the second allows for the realisation of value-enhancing investments and an largest operator in Austria. Over 100 windpower turbines with a attractive dividend policy. The financial strategy of the EVN Group total capacity of 200 MW are now in operation. Other major pro- is focused on the following aspects: jects to expand and increase the flexibility of generation capacity – Generating stable earnings from the core business are also in various stages of planning or realisation. – Protecting earnings contributions from foreign activities and strategic investments On the Drin River in Albania, operations started at the Ashta – Safeguarding EVN’s “investment grade“ classification by hydropower plant that was built by EVN in a joint venture with rating agencies to secure financing at attractive terms Verbund AG. This power plant has a total capacity of 53 MW – Maintaining an attractive dividend policy and has supplied electricity to the Albanian federal utility company since April 2013. In March 2013, EVN decided against The definition of EVN’s financial goals by Management is the realisation of a second hydropower project on the Devoll based on the following indicators: River in Albania and sold its 50% stake to the project partner Statkraft A.S. The closing took place on 7 May 2013. Financial indicators 30.09.2013 30.09.2012 Equity ratio 43.2% 43.9% In Bulgaria, the evaluation process and preliminary work are Net debt coverage (FFO) 44.2% 34.8% currently underway for the construction of a multi-stage storage Interest cover (FFO) 8.2x 6.8x power station on the Arda River. Payout ratio 65.3% 38.7%

The continued use of thermal power generation plants will Liquidity management in connection with the procure- be necessary to offset fluctuations in production from renewa- ment and investment of liquid funds is carried out centrally by ble energy sources and ensure uninterrupted service during peak EVN AG for all corporate units. EVN Finanzservice GmbH and demand periods. EVN therefore holds an investment in a high- EVN Projektmanagement GmbH serve as management compa- efficiency black coal-fired power plant that is under construc- nies for the Group‘s cash pooling and as a source of intragroup tion in Duisburg-Walsum, Germany. Commercial operations will loans, whereby the conditions for these investments and loans begin after the current commissioning is completed. must always reflect third-party transactions.

38 EVN Full Report 2012/13 the contractisconcluded.A description ofthefinancial trans in a foreign currency, the foreign exchange risk is hedged when via thecapitalmarketonatimelybasis.Iffinancingisobtained liabilities scheduledforrepayment in2013/14willberefinanced of 30September2013isshownonthefollowinggraph.The rity structure. Thematuritystructure ofthefinancial liabilitiesas diversification ofthematurityprofile tocreate abalancedmatu- of financinginstrumentsandpartners,butalsoonthe is closelycoordinated withtheGroup financedepartment. only arrangeforloansinexceptionalcases,whereby thisprocess primarily as liquidity reserves. The individual Group companies as thesyndicatedcredit line(remaining termoffour years) serve credit commitments(remaining termsoftwotosixyears) aswell banks.The line concludedwithaconsortiumof13international provided bysevenbanksandtheEUR500.0msyndicatedcredit are theEUR175.0mofbilateralcreditof EVN AG commitments was 7.03years(previous year:8.03years). The weightedaverageremaining termasof30September2013 currently outstandinghaveremaining termsofone to 19 years. EUR 2bn,ofwhichroughly one-half hasbeenused.Thebonds markets. TheDebtIssuanceProgramme coversatotalvolumeof capital marketandtoincrease itsindependencefrom theloan to obtainrefinancing atflexible and attractiveconditionsonthe plement on 30 September 2013). These ratings allow EVN AG Debt IssuanceProgramme (updatedon19April2013withasup- importance inthisconnectionare theratingsforEVN AG and the profile, whilealsooptimisingtheaverageinterest rate.Ofspecial focus isplacedonachievingabalanced,long-termdebtmaturity the optimisationoflong-termfinancingstructure. Special actions carriedout on page63. sheet structure isprovided inthemanagementreport beginning The financingstrategynotonlyfocusesonthediversification Other importantelementsforthestablefinancingstructure The businessmodelofautilitycompanyrequires, aboveall, during the reporting year and thebalance conditions andlongmaturities. benefit from flexibleaccesstothecapitalmarketatattractive good investmentgradesegmentcontinuestoallowEVN ing theannouncementofresults forthefirsthalf of 2012/13. Moody’s inAprilwasconfirmedattheendofJune2013follow- (stable outlook)inMay2013.TheA3issuedby cies in March 2013, Standard & Poor’s confirmed its BBB+ rating the annualratingconferences, whichwere held with both agen- by theratingagenciesremained unchangedin2012/13.After the result. Incontrast,theevaluationofEVN’s credit standing sure duringthepastfinancialyear, andfurtherdowngradeswere Overview ofstrategicprojects, Financialstrategy,Rating 031 041 2015/16 2014/15 2013/14 This stablecredit evaluationbybothratingagenciesinthe The ratingsofEuropean utilitycompaniescameunderpres- Rating in EURm Debt maturityprofile 496.6 232.1 264.5 103.6 Business overview 103.6 132.4 104.1 28.4 —management, Stakeholder EVN Full Report2012/13 061 >2017 2016/17 227.5 149.1 78.4 1,001.6 472.0 529.6 Banks loans Bonds 39

EVN Group EVN bonds Public bonds Private placements EUR CHF JPY JPY Volume 300.0m 250.0m 12.0bn 8.0bn Due date 13.04.2022 20.02.2014 09.01.2024 01.09.2014 Maturity (yrs) 10.5 5 15 20 Coupon (% p. a.) 4.250 3.625 3.130 5.200 ISIN XS0690623771 CH0049763102 XS0406428036 XS0052014114

EVN bonds Private placements EUR EUR EUR EUR EUR Volume 100.0m 25.0m 30.0m 28.5m 150.0m Due date 20.02.2032 23.02.2032 18.03.2019 11.03.2016 23.06.2017 Maturity (yrs) 20 20 10 7 8 Coupon (% p. a.) 4.125 4.125 5.250 5.000 5.250 ISIN XS0744577627 XS0746091981 XF000NS4HD4 XS0417260329 XS0434384334

Information on the current bond programme can be found on EVN’s website under www.evn.at/financial-strategy.

EVN share declines registered between January and July 2013 were subsequently offset during the remainder of the 2012/13 financial Numerous stock indices rose to historical highs during the year. The EVN share closed the reporting year at EUR 11.29, for reporting year from October 2012 to September 2013, even an increase of 4.2%. This corresponds to a market capitalisation though the markets were characterised by continuing uncer- of EUR 2.03 billion as of 30 September 2013. In comparison, the tainty and subsequent volatility. The issues that currently influ- DJ Euro Stoxx Utilities, the relevant industry index for EVN, rose ence developments on the capital markets include discussions by 0.5% during this same period. The average daily turnover in over a further rescue package for Greece, government crises in EVN shares rose slightly to 50,554 (single counting), which repre- several European countries, the on-going civil war in Syria, polit- sents an annual trading volume of EUR 136.0m (single counting) ical unrest in Turkey and, last but not least, contrary remarks by for EVN shares and 0.74% of the total trading volume on the the US Federal Reserve over the possible reduction of support Vienna Stock Exchange. EVN was weighted at 1.0% in the ATX measures (“quantitative easing”) and the shift to a more restric- index at the end of September 2013. tive monetary policy. Another troubling issue is the continuing high level of unemployment in Europe, above all the number of On 28 December 2012 and 29 August 2013, the Executive job-seekers under 25 years of age. Board of EVN AG approved the further repurchase of the company’s shares in connection with the share buyback pro- In view of these developments, the European Central Bank gramme. These decisions were based on an authorisation (ECB) cut the prime lending rate in May and November 2013 by of the 83rd Annual General Meeting of EVN AG on 19 Janu- 25 basis points to 0.25% and reconfirmed its intention to pursue ary 2012, with each covering the purchase of up to an additional an expansive monetary policy for a longer period of time 1,000,000 of the company’s shares. The maximum purchase under each of these decisions would represent up to 0.556% Stock market developments were generally very positive, in of the current share capital of EVN AG. The Executive Board of spite of the challenging environment. The German benchmark EVN AG also decided to extend the share buyback programme index DAX rose by 19.1% from October 2012 to September 2013, that has been in effect since 6 June 2012 to presumably end on while Vienna‘s benchmark index ATX increased by 21.0%. 31 May 2014. A total of 931,530 shares were repurchased from the start of the share buyback programme on 6 June 2012 to the The EVN share recorded sound year-on-year performance in end of December 2012. During the extension period, a further a difficult market climate for utility companies. The share price 656,000 shares were purchased from January to 28 August 2013

40 EVN Full Report 2012/13 payment toshareholders wasmadeon25January2013. financial year. Theex-dividenddaywas22January2013,andthe forthe2011/12 eligible share, totheshareholders ofEVN AG approved adividendpaymentofEUR75.0m,or0.42per profit forthe2012/13financialyear. per share. Thedividendpayout ratioequals65.3%ofGroup net 16 January2014, callingforthepaymentofaEUR0.42dividend make arecommendation to the85 attractive dividendsforshareholders. TheExecutiveBoard will establishing a balance between current investment projects and tive attheendof84 30 September2012)resigned from theSupervisory Board effec- Executive Officer ofEnBWEnergieBaden-Württemberg AGupto (Chiefber to Hans-PeterVillis the Supervisory Board of EVN AG. treasury shares represent approximately 1.0%ofshare capital. ber 2013,includingtheshares repurchased during2008.These 1,593,530. EVNheld1,843,612treasury shares asof30Septem- repurchased aspartoftheshare buybackprogramme totalled shares upto30September. Thenumberofshares and 6,000 year. the AnnualGeneralMeetingthatvoteson2014/15financial will serveouttheremaining termofoffice, i.e.to theendof Executive Board ofEnBWEnergieBaden-Württemberg AG),who 2013. He is succeeded by Thomas Kusterer (CFO, member of the be foundunder cancellation oftheindividuallysecuritisedshar Zeitung.Detailsonthethe Official Gazetteofthe Wiener on 25June2013andwiththerespective announcementin period were cancelledbya resolution of theExecutiveBoard ments. Theeffective shares notexchangedbythe end ofthis share certificates andtheirreplacement withcollectiveinstru- framework requires thewithdrawalofindividually the righttoindividualsecuritisationofshares. Thenewlegal Federal Gazette I 53/2011). This change involved the company law(“Gesellschaftsrechts-Änderungsgesetz 2011“, Association ofEVN The 84 EVN’s strategyfortheuseofitsfinancialresources includes The 84 A changewasalsomadeto§ th th AnnualGeneralMeetingalsoelectedanewmem- AnnualGeneralMeetingon17January2013 www.evn.at/ AG toimplementanamendment th AnnualGeneralMeetingon17 January Invalidations-of-shares th AnnualGeneralMeetingon

(2) oftheArticles e certificates can exclusion securitised . Austrian Business overview of

of 30September2013. 1% ofshare capital.Theremaining free floatequalled15.5%as repurchasedEVN AG treasury shares representing approximately December 2012 and August 2013. As part of this programme, programme wasapproved inMay2012andextendedtwice, Karlsruhe, Germany,withastakeof32.5%.Ashare buyback largest shareholder isEnBWEnergieBaden-Württemberg AG, is asubsidiaryoftheprovince ofLowerAustria.Thesecond held byNÖLandes-BeteiligungsholdingGmbH,St. withastakeof51%.Thisshareholding isformally of EVN AG tional law,theprovince ofLowerAustriaisthemajorshareholder .0% In accordance withAustrianfederalandprovincial constitu- Shareholder structure 1 32.5% 51.0% 15.5% Shareholder structure

T Fr Ener NÖ Landes-Beteiligungshold reasury shares ee float — EVN bonds,share, Shareholder structure gie Baden-Württemberg AG (EnBW) 32.5% 15.5%

1.0% ing GmbH EVN Full Report2012/13

51.0%

Pölten, which 41

EVN Group EVN share 2012/13 2011/12 2010/11 Share price at 30 September EUR 11.29 10.84 10.82 Highest price EUR 12.66 11.07 13.76 Lowest price EUR 9.42 9.17 9.92 Price performance % 4.2 0.2 –5.5 Total shareholder return % 8.1 4.1 –1.7 ATX performance % 21.0 7.30 –23.4 Dow Jones Euro Stoxx Utilities performance % 0.5 –9.10 –19.2

Value of shares traded1) EURm 136 122 358 Average daily turnover1) Shares 50,554 48,417 122,528 Share of total turnover1) % 0.74 0.64 1.08 Market capitalisation at 30 September EURm 2,031 1,949 1,945 ATX weighting % 1.00 1.22 1.27 WBI (Vienna Stock Exchange Index) weighting % 2.47 2.77 2.91

Earnings per share3) EUR 0.64 1.09 1.08 Dividend per share3) EUR 0.422) 0.42 0.41 Cash flow per share3) 4) EUR 3.10 2.68 2.68 Book value per share3) EUR 17.19 16.80 17.84 Price/earnings per share x 17.6 10.0 10.0 Price/cash flow per share4) x 3.6 4.0 4.0 Price/book value per share x 0.7 0.7 0.7 Dividend yield % 3.7 3.9 3.8 Payout ratio % 65.3 38.7 38.0

1) Vienna Stock Exchange, counted once 2) Proposal to the Annual General Meeting 3) Shares outstanding at 30 September 4) Gross cash flow

EVN share price – relative development in %

130

120

110

100

50 | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | 2011 2012 2013

EVN ATX ATX Prime Dow Jones Euro Stoxx Utilities

42 EVN Full Report 2012/13 and PDFfilesontheEVNwebsiteunder were terminated.Thesedocuments are availableasonlinereports and mailingof EVN’s Letters to Shareholders (interim reports) ning of2012/13.Inthis connection, thegeneralmass printing increased communicationsmediasincethebegin - useofmodern forum wasattendedbyroughly 200privateshareholders. strategic goalsandtheirrealisation. In2012/13,thisinformation opments duringthefirstsixmonthsoffinancialyearandon event, the Executive Board ofEVN AG reports on business devel- in connectionwiththepresentation ofhalf-year results. Atthis Meeting but,since2007/08,alsoataninformationafternoon ers receive detailedinformationnotonlyattheAnnualGeneral semi-annual press conferencesPrivatesharehold forjournalists. - ferences foranalysts,institutionalinvestorsandbanks,in on thedevelopmentofbusinessinquarterlytelephonecon- sustainability-oriented investorsare alsotakenintoaccount. innovative solutionsare added.Theinformationrequirements of adapted tomeettheneedsofcapitalmarketparticipantsand communications offering andinformationmaterialsare regularly istic evaluationofthecompany’s development.Accordingly, the goal istoprovide capitalmarketparticipantswiththemostreal- and reporting is active and as comprehensive as possible. EVN’s holders atthesametimeinanopenandtransparent manner, on clearprinciples.Allinformationiscommunicatedtoallstake- Department andreports totheChiefFinancialOfficer. Investor RelationsDepartment,whichisassignedtotheFinance and ratingagencies.Theseactivitiesare theresponsibility ofthe and potentialinvestorsaswellstockbondanalysts,banks Global ReportingInitiative. detailed information on sustainability indicators as defined by the reportas wellthecorporategovernance andalsoprovides management report andtheconsolidatedfinancialstatements a combinedFullReportsince2009/10. Thisreport contains the the SustainabilityReportpublishedinpast,EVNhasissued activities atEVN.InplaceoftheseparateAnnualReportand Shareholders. Shareholders canalsoorder aprintedcopyoftheEVN’s Letterto EVN’s efforts toconserveresources havealsoincludedthe In additiontoregular participationinroad shows,EVN reports Communications withcapitalmarketparticipantsare based EVN maintainsanactiveandcontinuousdialoguewithcurrent Investor Relations The optimisationofreporting isanimportantfocalpointof www.investor.evn.at . bility.evn.at

tional awards andprizesinvariouscategories: (Hamburg) andCF&BCommunication (Paris). (Zürs), Macquarie(London),Baader Bank(Munich),Kochbank (Milan), Société Générale (London), Raiffeisen Centrobank AG Trinkaus StockExchange (Frankfurt), BaaderBankandVienna shows organisedbythefollowinginvestmentbanks:HSBC conferencesRelations teamtookpartininternational androad services tailored tomeetthe needsofindividualinvestors. terly results, onlinestock exchange informationandnumerous ments onbusinessdevelopmentsbefore thepublicationofquar conference calls. These websites also contain analysts’ assess- and analystpresentations as wellaudiorecordings oftheEVN ments, informationontheAnnualGeneralMeeting,road shows EVN fullreport andquarterly reports, capitalmarketannounce- anked first atthetrend AustrianAnnual anked first “EVNSmart he interactive online advertisingmedium attheAustrianSustainabilityReporting anked first irst intheIRGlobalRankings2012branch Reporting A EVN wasr EVN Bulgariar of lifeforneedyresidents intheregion. foritson-goingeffortstoimprove thequality certificate EVN Macedoniawasalsoawar EVN Macedoniar EVN’ EVN placedsecondatthecompetition“placetoperform“ T EVN r evaluation for“ EVN wasf EVN placedsecondatthetr “overall reporting“ and“online IRandannualreport“. responsibility“ asthird as well inthecategories safety andemployeehealth. (CITUB) foritsimpressive achievementsinoccupational Bulgarian Confederation ofIndependentTrade Unions “continuous improvement ofservices“project. in thecategory“marketrelations“ forits from theAustrian NewspaperAssociation (VÖZ). the specialcategory“creative useofonlineadvertising“ Home“ received the “Adgar“ advertisingaward in and sustainabilityreport“ Awards (ASRA) 2013inthecategory“integrated annual Awards inthecategory“sustainabilityreporting“. In 2012/13,EVNreceived- thefollowingnationalandinterna In 2102/13,theChiefFinancialOfficer andtheInvestor s websites Business overview serveascommunicationplatformsthatincludethe wards inthecategory “corporate social eceived thePrometeya Prizefrom the online annualreport ranking“ www.investor.evn.at eceived theNationalCSRAward 2012 — EVN share, InvestorRelations end AustrianAnnualReporting EVN Full Report2012/13 ded the“GoldenSupporter“ and

www.responsi-

43 -

EVN Group The development of business at EVN is regularly analysed by Raiffeisen Centrobank AG, Macquarie Capital (Europe) Limited, Société Générale S.A., Deutsche Bank AG and Kepler Cheuvreux. Despite the difficult industry environment for utility companies, the EVN share had three “hold“ and two “buy” recommendations at the end of September 2013 with an average target price of EUR 11.56. EVN’s investment story has been well received by international investors. Additional information on the individual recommendations can be found under www.evn.at/analyses.

44 EVN Full Report 2012/13 Generation 5) 4) chasing rightsfrom hydropower Greifenstein plantsalongtheDanubeatMelk, andFreudenau andfrom investmentsin 3) 1) Heating lines Heating Sales volumes Natural gas Sales volumes Electricity Energy supply Customer unitscable TVandtelecommunications Other Natural gaspipelines Natural gasnetworks Power lines Electricity networks Energy distribution/Networks Thermal energy Renewable energy Own powergeneratingcapacity 6) 2) thereof otherrenewables thereof biomass thereof photovoltaics thereof windpower Sales volumes Customers thereof hydropower thereof coal Sales volumes Customers Sales volumes thereof natural gas Customers

P In Austria In AustriaandCr Incl. co-gener Contains twosludge-f andAshta asinVerbund-Innkraftwerke aswell the hydropowerinAlbania plantsNussdorfinVienna GmbH Incl. pur Energy EVN ataglance opulation equivalent(PE):Industrialwastewater convertedtohouseholdwater 5)

ation andcombinedheatpowerplantsin AustriaandBulgaria

oatia 3)

ired combinedheatandpowerplantsinMoscow

4) 2)

20,209 GWh 20,916 GWh 15,239 GWh 135,900 km 2,062 GWh 6,333 GWh 1,487 MW 13,863 km 1,088 MW 2,037 MW 3,308,100 550 MW 398 MW 200 MW 307 MW 213,500 292,000 670 km 26 MW 13 MW 80,200 3 MW Drinking water/wastewater Strategic investments RA Bur drinkingwatercapacity Installed 90 completedprojects thereof 105 drinkingandwastewaterprojects Europe andSouthEastern Eastern inCentral, Drinking water/wastewater Water pipes supplied thereof directly Customers Drinking watersupplyinAustria Utilitas Group –technicalservices Other investments oil andnatural gasexploration andgasstorage regional electricityandgassupply (Energie Burgenland AG) – andtransportpower generation, trading Verbund AG (EVNWEEVBeteiligungsGmbH)– Annual capacity Plant inMoscow International Annual capacity Plant inZwentendorf/Dürnrohr Austria Waste incineration wastewatercapacity Installed Sales volumes G-Beteiligungs-AG (Rohöl-Aufsuchungs AG) – genland Holding Aktiengesellschaft Aktiengesellschaft genland Holding Environmental services Strategic InvestmentsandOtherBusiness Business overview

— Investor Relations,EVNataglance

EVN Full Report2012/13

15,312,200 PE 1,183,500 PE 500,000t 360,000 t 26.2m m 2,361 km 502,100 50.03% 73.60% 12.63% 83,500

6) 6) 3 45

EVN Group Focus on the customer

In 2012/13, nearly four million customers placed their trust in also reach the service centres at any time of the day or night the safe and reliable energy and environmental products offered to report supply interruptions. The EVN customer service centres by EVN from a single hand. This wide-ranging portfolio – which in Austria handled roughly 680,000 telephone inquiries and includes electricity, natural gas, heat and water supplies as well as 120,000 e-mails in 2012/13. In order to meet internal quality wastewater disposal, cable TV and telecommunications services – standards in handling requests and complaints, EVN uses a helped to improve the quality of life for people in over 20 coun- quality improvement programme to survey customers’ expe- tries across Central and South Eastern Europe. EVN supplies riences. The goal is to analyse the handling quality of specific 3.3 million customers with electricity, 292,000 customers with scenarios and to identify opportunities for further development natural gas and 80,200 customers with heat. Roughly 500,000 as the basis for implementing improvement measures. A total of customers in Lower Austria are supplied with clean drinking 1,480 samples were collected in connection with this programme water, and a further 213,500 customers used EVN’s cable televi- during 2011/12. Another sampling round was carried out from sion and telecommunications services. The plants built by EVN‘s spring 2013 to the end of September and collected feedback environmental services business in recent years provide thermal from roughly 520 employees. waste utilisation, drinking water supply and waste water disposal for 16.5 million customers in 18 countries throughout Europe. EVN also supports its customers through various activities in EVN’s broad customer base is reflected, above all, in the energy the area of energy consulting. Mobile teams and the EVN Shop business, where roughly two-thirds are represented by household in Wiener Neustadt that opened in 2011 provide helpful tips customers. The remaining customers are commercial enterprises, and valuable information on opportunities to save energy in per- industrial companies and public institutions. In the project-based sonal discussions and by means of individual services. Examples environmental business, EVN works primarily with public custom- of the areas covered by these services include renovation, the ers like cities, municipalities and communities. replacement of heating equipment, the maintenance of electrical and natural gas equipment, the calculation of energy consump- EVN’s customer structure 30.09.2013 tion for building certification and support for the construction Energy1) 3,680,300 of photovoltaic equipment. In connection with its products, Electricity grid 3,308,100 EVN offers technical solutions to improve energy efficiency and Natural gas grid 292,000 reduce energy consumption. Individual and flexible energy tariffs Heating grid 80,200 round off this offering for customers.

Environmental services 16,997,800 GRI indicator: Customer numbers (EU3) Drinking water (Austria) 2) 502,100 International drinking/wastewater services (PE 3)) 16,495,700 Visitors to the EVN information centres

Cable TV and telecommunication 213,500 28,404 7,989 AKW Zwentendorf 1) Due to current company-specific constraints and internal regulations, 26,402 26,631 7,017 (open-house days) there is no further elaboration of details. 8,459 2) Thereof directly supplied: 83,500 3) Population equivalents (PE): industrial wastewater adjusted for wastewater of households 2,000 Waste incineration plant 2,700 Dürnrohr/Zwentendorf 2,871 6,602 6,110 Power plant Ottenstein “EVN is always there for me“: in line with this motto, EVN 6,705

works to establish a professional partnership with customers 11,813 Power plant Theiss through its extensive network of service centres and competent 10,804 personal and telephone support. EVN customers in Lower Austria 8,367 have highly qualified staff in 26 customer centres at their disposal. These service experts are available to answer telephone enquiries on energy issues or invoices as well as products and services on workdays from 7:00 am to 7:00 pm. Customers can 2010/11 2011/12 2012/13

46 EVN Full Report 2012/13 help EVNtoseethecompanythrough theireyes. members represent the widerangeofcustomers‘opinionsand design ofservices,products andcommunicationmeasures. Its mendations and,inthisway,hasanimportantinfluenceonthe current trends andissues,contributesfresh ideasandrecom - Advisory Board hasanimportant function:itprovides insightinto and improve themutualexchange ofinformation.TheCustomer company’s continuingefforts toincrease customersatisfaction members started.TheCustomerAdvisoryBoard supportsthe was establishedin2011.In2013anewtermofoffice withnew there isaCustomerAdvisory Board inplaceatEVN.Theboard he project “Joulius, areal ofenergy“ bundle involves s social responsibility is also reflected in projects

to the1,458schoolsinL tation kitsandmodelshavebeenprovided free ofcharge Teaching materials,classplanners,CD-ROMs,experimen an opportunitytoorganise visitstotheEVNpowerplants. related toenergy schoolsalsohave andenergy savings.The childr Every year As afurthermeasure toimprove thedialoguewithcustomers, Customer AdvisoryBoard Macedonia andBulgaria. During October2007aschoolservicewasintroduced in EVN schoolservice energy issues and teenagers’awareness for Projects ro raisechildren’s T EVN’ an interesting look atthesubjectofelectricity. tour gave12,500children inroughly 250daycare centres latest The ing and illustrative materials are distributed. carelearn- centres950 day inLower Austria.Inaddition, plays onenergy-related themesthatare presented at are offered orsupportedonaregular basis: its responsible use.For projects example, thefollowing focus onawiderange ofsubjectsrelated toenergy and organised projects forchildren andteenagers. These “Joulius andtheLightforEmil“ EVN daycar en in Lower Austria for talks on different subjects en in Lower Austria for talks ondifferent , theEVNcoachesvisitover15,000school e centre project –theatre tour

ower Austriaformanyyears.

an electricity provider. This factor was named as EVN’s named supplysecurityasthemostimportantreason forselecting its household customers. For 2014 it is planned to initiate a form topromote adirect dialoguebetweenthecompany and Customer AdvisoryBoar interested customerstoapplyforparticipationina come upwithsuggestionsforimprovement. Board todiscussissuesthatare relevant tocustomersand they alsomeetEVNstaff andrepresentatives ofthe Customer AdvisoryBoard cometogethertwiceeachyear, when the inclusionofmanydifferent interests. The24membersofthe balance betweenvariouscustomergr The board membersare selectedwithaviewtoachieving the EVNwebsiteinviteinterested customersofEVNtoapply. andon Announcements inthecustomermagazineEVNJournal service. strength, followedbysatisfaction withcustomertelephone also received apositiverating. In additiontopricing, structured invoices,which alsohastomeetlegalrequirements, had reached thehighestlevel since2004.Thenew,more clearly customer satisfactionwiththeprice-performanceratioin2012 at allsatisfied;2011:1.77).Acomparisonovertimeshowsthat (on afive-stepscalerangingfrom 1=verysatisfiedto5not remained stableatahighlevel in2012withameanvalueof1.76 suggestions forimprovement. business transactionsandalsoprovide valuableinformationon basis foranalysinggeneralcustomersatisfactionandrelevant These latestresults, combinedwithlong-termtrends, formthe cover measure thesatisfactionofitscustomers.The2012survey Customer AdvisoryBoar itional informationonthe EVNCustomer Advisory Boar Add In September 2013, EVN Bulgaria issued its first invitation to The Customer Advisory Board is elected every two years. The overallsatisfactionofEVN’s householdcustomers EVN hascarriedoutsystematicsurveysformanyyearsto Austria Customer satisfaction www.evn.at/Customer-Advisory-Board ed nearly7,000householdcustomersinLowerAustria. d anditsactivitiescanbefoundunder d inMacedonia. d. Thisboard willalsorepresent aplat- EVN Full Report2012/13 oups andthereby ensuring Focus onthecustomer .

customers Bulgarian Executive

gr eatest 47

EVN Group communication of results and the management of improvement New EVN invoices: more compact, measures. EVN Macedonia demonstrated its commitment to the clearer and easier to understand continuous improvement of customer service in 2012/13 by also organising the “Customer Service Week“, which was held in Numerous legal requirements had made the EVN invoices Macedonia during October 2013. The “Customer Service Week“ longer and increasingly complex in recent years. In order is an international event that draws several thousand participants to make these account statements more understandable, from more than 40 countries and focuses on the importance clearer and transparent, EVN launched a wide-ranging of customer satisfaction and the significance of employees in project to improve their customer orientation. A multi- customer-related fields. stage process was started, which involved staff from different departements together with customers and GRI indicator: Customer satisfaction (PR5) members of the Customer Advisory Board. Their objectives were to: Product responsibility – identify the needs and requirements for invoices, Similar to the corporate policy statement and the environ- – analyse and include the survey results, and mental policy statement, the principles of product responsibility – prepare and evaluate several design drafts, and select represent an integral part of EVN’s central mission statements. the best alternative. This standing underscores their key importance. The EVN key values – E(V)Nsure, E(V)Ncourage and E(V)Nable – also highlight A total of 811 EVN employees took part in a January 2012 the importance of the EVN brand promise, which can only be survey and added their recommendations to optimise the met with the commitment of all employees. invoice design. The individual statements can be found under www.responsibility.evn.at. EVN‘s Customer Loyalty Index was introduced in 2011 and For additional information on EVN’s key values, measures customer loyalty based on various indicators. It was see pages 34 and 36. implemented as a strategic monitoring instrument and calculated monthly in 2012. The goals of the index are to recognise changes Strict regulations govern the quality assurance and protection in customer loyalty, identify the causes and strengthen customer of customer data and are the focus of continuous monitoring. relationships through suitable measures. The results of the survey EVN places great importance on transparent and informative indicated that service-oriented customers have a particularly market, product and service communications as well as social strong affinity to EVN. responsibility toward disadvantaged groups and climate protection. The monitoring audit for the certification of EVN’s Eur opean call centre under EN 15838 was successfully completed in The electricity and natural gas networks operated by EVN are December 2012. This standard sets the quality requirements for certified for compliance with the security standards issued in the customer contact centres, with customer satisfaction forming the form of guidelines by “Oesterreichs Energie“ and the Austrian focal point. The audit covers personnel, organisation, processes, Association for Gas and Water (“Österreichische Vereinigung für technology and service. This certification is strong proof of the das Gas- und Wasserfach”, ÖVGW). Regular reviews by an inde- high quality of EVN’s free service hotline. pendent external auditing team ensure a high level of quality, among others in the following areas: Bulgaria and Macedonia – Planning, construction, operation and maintenance of grids The customer service staff at EVN Macedonia answered and plants 340,000 telephone calls and approximately 14,600 e-mail enquir- – Organisational structures, procedures and processes ies from customers in 2012/13. EVN Bulgaria received nearly – Responsibilities, specialised know-how and decision-making 531,000 telephone enquiries and approximately 23,800 e-mails. expertise – Training, personnel and operating costs In Macedonia, 7,500 interviews and 1,500 mystery shop- ping tests were carried out to evaluate customer satisfaction. A In planning and designing its advertising and marketing cam- number of opportunities for optimisation were identified, and paigns, EVN not only focuses on its own strategic goals but also their timely implementation was ensured by reorganising the on sustainability. The central aspects of energy supply, energy

48 EVN Full Report 2012/13 vulnerable targetgroups suchaschildren. encroaches onprivacyorwhichattemptstoinfluenceparticularly form togenerallyacceptedethicalorculturalstandards, which all communications.EVNrejects advertisingthatdoesnotcon- saving tipsandenergyservicesreceive adequatetreatment in sustainable planning,production anddistributionof ations ofEVNanditssubsidiaries.Thisapplies,aboveall,tothe sidered exemplaryinmanyareas, particularlyintheforeign oper products. RecyclingisbasedonAustrianstandards and iscon- sales promotion, use,maintenance,disposalandrecycling of certification, manufacture, production, distribution,marketing, research and development activities as well as processes for the for the(further)developmentofproduct concepts,innovation, focus onthedefinition of and compliancewithhighstandards management playsanimportantrole inthisprocess through its entire product cycleminimiseshealthandsafetyrisks.Quality quality assuranceprocedures. customer satisfaction,healthandsafetybasedoncompr products andservicesare continuouslymonitored withrespect to supplies inther as wellqualityassurance for the networks and electricity icator: Legalconformity intheadvertisingarea (PR6) icator: Effectsonhealthandsafetythroughout the The responsible approach followedbyEVNthroughout the product lifecycle (PR1) GRI ind GRI ind egions where EVNoperates.Allcategoriesof electricity ehensive -

EVN Full Report2012/13 Focus onthecustomer 49

EVN Group Electricity price structure Composition of electricity from EVN KG in Lower Austria1) in terms of primary energy sources in % in % as at 30.09.2012 2011/12 as at 30.09.2013 2012/13

50.91 39.6 Hydropower 55.52 Energy costs 39.2

8.92

30.5 Natural gas 7.15

Network costs 29.2 30.09

Coal 26.05 29.9 Taxes and charges 31.6 4.38

Biomass 4.41

1) Assumptions: household with an annual consumption of 3,500 kWh 3.62 Wind and solar power 4.38

2.08

Rest1) 2.49

Nuclear energy 0.0

1) Electricity generation from thermal waste utilisation by EVN Abfallverwertung, crude oil and its by-products, biogas, landfill gas and sewage gas

Gas price structure Composition of electricity from the in Lower Austria1) Naturkraft Energievertriebsgesellschaft m.b.H. in % in terms of primary energy sources as at 30.09.2012 in % as at 30.09.2013 2011/12 2012/13

53.2

Energy costs 39,2 54.0 73.45

Hydropower 84.67

21.9 18.91 Network costs 21.1 Windpower 10.90

24.9 3.40 Taxes and charges 24.9 Biomass 3.13

Other renewable 1) Assumptions: household with an annual consumption of 20,000 kWh energy (biogas, 4.24 landfill and sewage gas) 1.30

50 EVN Full Report 2012/13 Corporate governance report

EVN AG is an Austrian public limited company that is listed Deviations from C-rules on the Vienna Stock Exchange. As a result of this standing, cor- Due to the distinctive characteristics of the Austrian energy porate governance is based on Austrian law – in particular stock industry and EVN’s business, the company does not adhere to the corporation and capital market laws, legal regulations governing following C-rules of the ACGC: co-determination by employees and the company by-laws – as well as the Austrian Corporate Governance Code (ACGC, see Rule 16: Following the resignation and retirement of the third www.corporate-governance.at) and the rules of procedure for Executive Board member, Herbert Pöttschacher, on 30 June 2013, the company’s corporate bodies. the rules of procedure for the Executive Board were changed for the period in which the Executive Board consists of two Corporate governance report members. This change requires the convening and presence of at Commitment to the Austrian least two members at a meeting of the Executive Board for a resolution to be considered legally valid. If the Executive Board has Corporate Governance Code only two members, resolutions must be passed unanimously and abstention from voting is not permitted. In cases where a unan- Introduction imous decision is not reached, the Executive Board must review The Executive Board and the Supervisory Board of EVN are and vote again on the respective point of the agenda within ten committed to the principles of good corporate governance and days. If the second round of voting does not bring a unanimous thereby meet the expectations of national and international resolution, the Executive Board must report this situation to the investors for responsible, transparent and sustainable manage- Supervisory Board. A spokesman will also be appointed for the ment and control. On 1 June 2006, EVN announced its commit- Executive Board, even when there are only two members, and ment to comply with the ACGC in the January 2006 version. The the direction of the meetings and representation therefore also June 2007 version of the ACGC took effect for EVN on 1 January apply in this case. 2008, the January 2009 version as of 1 October 2009 and the January 2010 version as of 1 March 2010. The January 2012 Rule 45: All members of the Supervisory Board, with one version of the ACGC took effect at EVN as of 1 October 2012. exception, complied with the provision that prohibits them from The amendments to the ACGC to reflect the Second Stability Act assuming functions on the boards of other enterprises which from July 2012 are also binding for EVN. compete with EVN. The Supervisory Board member who does not meet this rule represents the interests of a specific shareholder The ACGC standards are divided into three categories. The of EVN AG. legal requirements (L-rules) are based on binding regulations, which must be observed by all Austrian listed companies. Rule 51: The Supervisory Board remuneration is disclosed in EVN complies in full with all these requirements. The C-rules total as well as in percentages for the chairman, the two deputy (Comply or Explain) require disclosure of the reasons in the chairmen and the other members. This presentation provides event of non-compliance. EVN provides a detailed explanation adequate insight into the remuneration situation. of any deviations from these rules online under www.evn.at/ Corporate-Governance-Report and provides an overview in the following section of this report. The R-rules represent recommendations and do not require the disclosure of deviations.

The EVN Executive Board and Supervisory Board formally declare their commitment to fully observe all C-rules of the ACGC, with the exception of the following deviations and explanations. Furthermore, the company only deviates from a limited number of R-rules.

EVN Full Report 2012/13 51 Corporate bodies

Executive Board

Peter Layr Spokesman of the Executive Board

Born in 1953. Doctor of Technical Sciences. Joined EVN in 1978. Member of the EVN Executive Board since October 1999. Appointed spokesman of the EVN Executive Board in January 2011. His term of office expires on 30 September 2019. Peter Layr has executive responsibility for the Generation, Network Infrastructure Austria and Environmental Services (since 1 July 2013) Seg- ments as well as EVN’s data processing, procurement and purchasing functions as well as internal auditing (since 1 July 2013). In accordance with the disclosure required by Rule 16 of the ACGC1), he holds one supervisory board mandate in another domestic company that is not included in the consolidated financial statements of the EVN Group. 1) Verbund AG, member of the Supervisory Board

Stefan Szyszkowitz Member of the Executive Board

Born in 1964. Master of Law, Master of Business Administration. Joined EVN in 1993. Member of the EVN Executive Board since January 2011. His term of office expires on 19 January 2016. Stefan Szyszkowitz has executive responsibility for the Energy Trade and Supply and Energy Supply South East Europe Segments as well as the following corporate functions: contr olling, customer relations, finance (incl. investor relations), Group accounting, general secr etary and corporate affairs, information and communications, human resources as well as administration and construction (since 1 July 2013). In accordance with the disclosure required by Rule 16 of the ACGC2), he holds one supervisory board mandate in another domestic company that is not included in the consolidated financial statements of the EVN Group. 2) EVN-Pensionskasse Aktiengesellschaft, chairman of the Supervisory Board

Herbert Pöttschacher Member of the Executive Board

Born in 1949. Degree in Surveying, Regional and Environmental Planning. Member of the EVN Supervisory Board from 1991 to 1995 and member of the EVN Executive Board from July 1995 to the end of his term of office on 30 June 2013. Herbert Pöttschacher had executive responsibility for the Environmental Services Segment as well as EVN’s internal auditing, administration and construction functions up to 30 June 2013. In accordance with the disclosure required by Rule 16 of the ACGC3), he holds one supervisory board mandate in another domestic company that is not included in the consolidated financial statements of the EVN Group. Herbert Pöttschacher resigned from EVN AG with the end of his term of office on 30 June 2013. 3) SERVICE MENSCH GmbH, member of the Supervisory Board

52 EVN Full Report 2012/13 Otto Mayer(1959) Manfred Weinrichter (1961) Monika Fraißl (1973) Leopold Buchner(1953) Paul Hofer(1960) 2) 1) employee representativesThe are delegatedbytherespective Works Councilforanunlimitedterm, butmayberecalled bytheirWorks Councilatanytime. SupervisoryBoard of all membersexpire attheendofAnnualGeneral termsofoffice voteonthereleaseyear. Meetingthatwill fromThe liabilityforthe2014/15financial Franz Hemm(1955) Employee representatives (1958)Hans-Peter Villis Michaela Steinacker (1962) Edwin Rambossek(1943) Bernhard (1973) Müller Reinhard Meißl(1959) Dieter Lutz (1954) KustererThomas (1968) Norbert Griesmayr(1957) (1956) Vice-Chairman Stiowicek Willi (1946) Vice-Chairman Stefan Schenker Burkhard Hofer(1944) President andChairman Shareholder representatives Name (Year ofbirth)

A listoftheSupervisoryBoar Rule 54oftheA Rule 53oftheA Members oftheSupervisoryBoard Supervisory Board CGC: Norepresentation ofshareholders withastakeover10%andindependentinaccordance withRule53oftheACGC CGC: IndependentofthecompanyandExecutive Board d committeescanbefoundonpage55. ponmn Functioninlistedcompaniesandotherimportantfunctions appointment Date ofinitial unlimited term 01.04.2007 unlimited term 03.05.1994 to 17.01.2013 from 17.01.2008 12.01.2001 20.01.2011 12.01.2006 12.01.2006 12.01.2006 17.01.2013 12.01.2001 15.01.2009 12.12.1996 20.01.2011 unlimited term 12.05.2005 unlimited term 01.01.2001 unlimited term 01.07.2013 to 30.06.2013 from 19.01.2009 Central Works Council Central Works CouncilofNetzNiederösterreich GmbH ofthe Vice-chairman Central Works Council oftheCentral WorksVice-chairman CouncilofEVNAG Chairman oftheCentral Works CouncilofEVNAG vice-president oftheLower AustrianChamberofLabour Chairman oftheCentral Works CounciloftheEVNNetzGmbH, reg.Gen.m.b.H. (upto30.06.2013) NIEDERÖSTERREICH-WIEN member oftheExecutiveBoard ofRAIFFEISEN-HOLDING (since 01.07.2013),memberoftheAustrianParliament (since29.10.2013), advisory board of Raiffeisen evolutionproject developmentGmbH Authorised representative forreal estateandchairwoman ofthe Corporate consultant Neustadt Mayor ofthestatutorycityWiener GmbH and NÖLandes-Beteiligungsholding GmbH Lower Austria,CEO ofNÖHolding department,ProvincialHead oftheFinance Government association ofÖsterreichische Industrie,Group Lower Austria oftheLowerVice-President AustrianChamberofCommerce andofthe Chairman ofthemanagementboard oftheBenda-Lutz Corporation, USA, Shareholder andManaging Director oftheBENDA LUTZWERKE GmbH, EnBW Energie Baden-Württemberg AG Member oftheExecutiveBoard of VAV Versicherungs-Aktiengesellschaft Chairman oftheExecutiveBoard of Magistrate ofthe Provincial Capital St. Head ofthePresidential Departmentofthe Independent forestry engineer of HYPONOEGruppeBankAG Chairmanofthe SupervisoryBoardAktiengesellschaft, Member oftheSupervisoryBoard ofFlughafenWien

Corporate governance reportCorporate governance

P ölten

EVN Full Report2012/13

—bodies Corporate Rule 53 Independence e yes yes yes yes yes yes e yes yes yes yes yes no yes yes yes yes no yes e no yes oyes no 1) Rule54 53 2)

Corporate governance report Independence of the Supervisory Board – monitoring the audit of the annual and consolidated financial A member of the Supervisory Board is considered to be inde- statements; pendent when he/she has no business or personal relations with – verifying and monitoring the independence of the auditor the company or its management board that could lead to a of the annual financial statements (consolidated financial material conflict of interest and therefore influence the member’s statements), especially with regard to supplementary services behaviour. If any such conflicts of interest arise, EVN requires provided for the audited company; multi-year transition periods in accordance with the ACGC. – reviewing the annual financial statements and preparing the authorisation of these financial statements, reviewing the The guidelines to determine the independence of the elected proposal for the distribution of profits, the management members of the Supervisory Board stipulate that these persons report and, if applicable, the corporate governance report as – may not have any business or personal relations with EVN AG well as submitting a report on the results of this review to the or its Executive Board that constitute a material conflict of Supervisory Board; interest and are therefore capable of influencing the mem- – examining the consolidated financial statements and the ber’s behaviour; Group management report and submitting a report on the – may not have served as a member of the Executive Board or a results of this examination to the Supervisory Board of the top executive of EVN AG or any of its subsidiaries during the parent company; and past five years; – preparing a proposal for the Supervisory Board on the selec- – may not maintain or, in the previous year, did not maintain tion of the auditor of the annual and consolidated financial any business relations with EVN AG or a subsidiary of EVN AG statements. that are considered material for that member. This also applies to business relations with companies in which the Supervisory The members of the Audit Committee include the financial Board member holds a significant economic interest; experts required by law and Rule 40 of the ACGC. – may not have acted as an auditor of EVN AG or owned a share in or worked as an employee of this firm during the past The Personnel Committee is responsible for all matters involv- three years; ing the relationships between the company and the members of – may not serve on the management board of another com- the Executive Board, in cases where the full Supervisory Board pany in which a member of the Executive Board of EVN AG is is not responsible under law. The Personnel Committee nomi- a member of the supervisory board; and nates replacements for seats on the Executive and Supervisory – may not be closely related (i.e. direct offspring, spouses, life Boards. As the Remuneration Committee of the Supervisory partners, parents, uncles, aunts, sisters, nieces, nephews) to Board, the Personnel Committee has one member with know a member of the Executive Board or to persons who hold one ledge and experience relating to remuneration policy (Rule 43 of the above-mentioned positions. of the ACGC).

Function and committees of the Supervisory Board The Working Committee is responsible for carrying out the The Supervisory Board fulfils its responsibilities as a joint specified tasks assigned by the full Supervisory Board. In certain decision-making body in cases where individual issues are not urgent cases, the Working Committee is authorised by the rules delegated to its committees. The Supervisory Board committees of procedure for the Supervisory Board to approve specified busi- are responsible for preparing negotiations and resolutions, mon- ness transactions on behalf of this body. itoring the implementation of the Supervisory Board’s decisions and taking decisions on issues delegated by the Supervisory The Supervisory Board held five plenary meetings during Board. The following committees were established by the Super- the reporting year, at which its members fulfilled the tasks and visory Board of EVN AG, each of which includes at least three duties required by legal regulations and the company’s by-laws. elected Supervisory Board members and the legally required The Audit Committee of the Supervisory Board met twice in number of employee representatives: 2012/13. The Working Committee, which also serves as an emergency committee, did not meet during 2012/13. The Per- The responsibilities of the Audit Committee are as follows: sonnel Committee, which also serves as a remuneration and – monitoring the accounting process; nominating committee, met four times during the reporting year. – monitoring the effectiveness of the internal control system Average attendance at Supervisory Board meetings equalled and, if necessary, the company’s internal audit and risk man- 83% in 2012/13. agement systems;

54 EVN Full Report 2012/13 EVN on17January2013are availableontheEVNwebsite (see members oftheSupervisoryBoar (Rule58oftheACGC). Supervisory Board meetingsin2012/13 Müller) didnotpersonallyparticipateinmore thanhalf ofthe of voting andthe agenda for the 84 the companyby-lawsandplannedcapitalmeasures. Theresults meeting isentitledtomakedecisionspertainingchangesin and consolidatedfinancialstatements,theelectionof from liability,theselection oftheauditorforindividual the membersofExecutiveBoard andtheSupervisoryBoard by-laws, amongothersthedistributionofprofits, therelease of for theannualgeneralmeetingbyAustrianlaworcompany’s multiple votingrights.Decisionsonspecific mattersare reserved granted onevote.EVNAGhasnopreferred shares orshares with rights attheannualgeneralmeeting,whereby eachshare is www.evn.at/ The shareholders ofEVNshares exercise theirlegaland Annual GeneralMeeting Paul Hofer Franz Hemm Reinhard Meißl Stiowicek Willi Burkhard Hofer Stefan Schenker(Chairman) Audit Committee Stiowicek Willi Stefan Schenker Burkhard Hofer(Chairman) Personnel Committee Paul Hofer Franz Hemm Reinhard Meißl Stiowicek Willi Stefan Schenker Burkhard Hofer(Chairman) Working Committee Board committees Composition oftheSupervisory One memberoftheSupervisoryBoard (MayorBernhard AGM.aspx ). ). d. Moreover, theannualgeneral th Annual General Meeting of voting

bodies (i.e.ExecutiveBoar system andrequires strictseparationbetweenmanagement of meetings. the SupervisoryBoard. Inparticular, thisincludes thepreparation tain regular contactonissuesthatfallundertheresponsibility of Executive Board and the chairman of the Supervisory Board main- and itscommitteesinwriting,asrequired. Inaddition,the visory Board takeplaceat the meetingsofSupervisoryBoard importance relating tomajor Group subsidiaries. opment ofbusinessintheGroup andinformationonmattersof the ExecutiveBoard alsoinclude quarterlyreports onthedevel- the SupervisoryBoard committees. Thereporting obligationsof the SupervisoryBoard. These reporting standards alsoapplyto detailed listofsuchcases. for otherbusinesstransactions.Thecompanyby-lawscontaina Executive Board toobtaintheconsentofSuper regulations oraprevious SupervisoryBoard resolution require the discussions and decision-making by the Executive Board. Legal given requirements. Certaintransactionsare reserved forjoint sibility totheindividualExecutiveBoard membersbasedonthe Supervisory Board establishesandassignsspecific areas ofrespon- the ACGC. the SupervisoryBoard. Importantrulesofconductare definedby procedure for the Executive Board that have been approved by requirements andthecompany’s by-lawsaswelltherulesof The basisfortheworkofExecutiveBoard isformedbylegal the interests ofshareholders, employeesandthegeneral public. so astosupportitsbusinessactivitiesandcontinuedsuccessin The Executive Board is responsible for managing the company the membersare entitledtodesignatetheirownspokesman. not appointachairmanor spokesman for theExecutiveBoard, and twomembersafterthatdate.IftheSupervisoryBoard does sory Board). Parallelmembershipinbothbodiesisnotpermitted. Austrian stockcorporationlawprescribes adualmanagement control responsibilities Clear separationofmanagementand Communications between the Executive Board and the Super Organisational lawrequires theExecutiveBoard toreport to Reporting obligationsoftheExecutiveBoard Irrespective of the Executive Board‘s overall responsibility, the EVN’s ExecutiveBoard hadthree membersupto30June2013 Management ofthecompanybyExecutiveBoard Corporate governance reportCorporate governance d) andcontrolling bodies(i.e.Supervi- EVN Full Report2012/13 —bodies Corporate

visory Boar 55 d -

Corporate governance report Supervisory Board reserve further increased the solidity and stability of the variable As of 30 September 2013, the Supervisory Board of EVN AG remuneration system. had ten shareholder representatives elected by the Annual General Meeting and five members delegated by the Works The bonus reserve is defined as a payment mechanism which Council. The Supervisory Board is led by a chairman and two is converted into an annual pro-rata bonus if the quantitative vice-chairmen, who are chosen by the Supervisory Board from targets are met during a given period. Up to one-half of the among its members. The minimum number of independent bonus reserve is distributed after the achievement of objectives members was set at 50% in a meeting on 29 May 2006. The has been confirmed, while the remainder is carried forward to independent members of the EVN Supervisory Board, as defined the next year. The introduction of a bonus reserve is designed to by Rules 53 and 54 of the ACGC, are listed on page 53. achieve two main goals. On the one hand, it serves to focus on a multi-annual approach that links consecutive years by carrying The Supervisory Board performs its duties in accordance the unpaid bonus components from the initial reserve forward to with the provisions of stock corporation law and the company’s the period similar to an opening balance. On the other hand, this by-laws. Additional guidelines for its activities are provided by scheme aims to cushion and smooth the “independent” fluctu the rules of procedure for the Supervisory Board and the ACGC. ations in the company’s economic performance.

One particular responsibility of the Supervisory Board is to Multi-annual approach: The quantitative objectives are supervise the work of the Executive Board, from which it may defined in advance for a period of three years. The determination request a report at any time concerning the development of of target achievement is based on internal data and information business. Legal regulations allow the Supervisory Board to as well as external sources, e.g. benchmarks, peer group analysis extend the scope of business transactions requiring its formal and capital market and rating evaluations. In addition to the gen- consent as defined in § 95 (5) of the Austrian Stock Corpora- eral three-year period, the accuracy and validity of the medium- tion Act. The rules of procedure for the Executive Board and the term targets is evaluated each year. These targets are only revised Supervisory Board contain a detailed list of such business trans- in exceptional cases, for example in light of unforeseeable events actions and measures. The Supervisory Board deals annually with or changes in the company which have a significant impact on the ef ficiency of its work, in particular its organisation and mode performance. of operation. Stock options (Rule 29): EVN does not have a stock option programme for the members of the Executive Board or key managers. Remuneration report Performance-based bonus programme for the Executive Remuneration for top executives (Rule 28a): In the light Board (Rule 30): In 2012/13, the remuneration of the Executive of the requirements defined by the latest version of the ACGC, Board comprised a fixed component of 76% and a variable the current variable remuneration system for top executives was component of 24%. The variable component was based on the adjusted as of 1 October 2010. However, the ratio of the variable 2011/12 financial year. The performance-based component is remuneration to fixed salaries remained the same. capped and includes the following components: 40% based on an increase in economic value added (EVA®), 30% on the average This adjustment set the following priorities: cash flow contribution and 30% on individually agreed targets.

Indicators to illustrate the company’s economic situation: In keeping with the requirements of the current ACGC, the In line with the further development of management indicators Supervisory Board of EVN AG approved an amendment to the to reflect the strategic and operating priorities of the EVN Group, previous variable remuneration scheme beginning in 2010/11. the following quantitative parameters are used: increase in eco- However, the ratio of variable remuneration to fixed salaries nomic value added (EVA®) and average cash flow contribution. remained unchanged. Additional information is provided under the remuneration system for top executives (Rule 28a). Sustainability: One of the primary objectives of the current version of the ACGC is to strengthen the focus of the Execu- Detailed information on the remuneration of the Executive tive Board and top managers on sustainability and a long-term Board is provided in the notes to the consolidated financial state- orientation. The introduction of multi-annual targets and a bonus ments on page 163f.

56 EVN Full Report 2012/13 cation whichisalsoopentomen andwomenonparental leave. a comprehensive programme ofvocation information events for staff members on parental leave as well as leave,daycarewomen returningaftermaternity durin working timemodels,theprovision ofindividualisedsupport to measures tosupportthe work-life balance,includingflexible workforce duringthereporting year. EVNhaslongpursued gramme washigherthanthecurrent share ofwomeninEVN’s young women in the Group’s management develop direct projects (careers asproject managers). Thepercentage of were appointedtosenior positions andsevenwere assignedto fourwomen in linewiththeirinclinationsandskills.In2012/13, ified positionsinspecialised areas andatthemanagementlevel create operatingconditions thatenablewomentoassumequal- to women working for the EVN Group in Austria. It is designed to centage byimproving the opportunities andperspectivesoffered toincrease thisper “Women@EVN” programme in2010/11 to 21.9%.TheExecutiveBoard developedandapproved the this focus,thepercentage ofwomeninEVN’s workforce amounts to offering equalopportunitiestoallitsemployees.Inspiteof Board (Rule48): and meeting. more than9.0%.TheattendancefeeequalsEUR190perperson vice-chairman 11.0%andeachoftheothermembersslightly chairman receives 15.1% of this amount, each of the two Supervisory Board remuneration totalsTEUR98per year. The visory Board doesnotincrease thepremium. extending thisinsurancecoveragetothemembersofSuper Group andisnotdependentonthenumberofinsured persons, are carriedby the company. Since the premium applies to the and conditionsatthepresent time.Thecostsforthisinsurance iated companiesare jointlyinsured undertheprevailing terms managing directors. TheGroup’s subsidiariesandcertainaffil- of theirlegalobligationtoexercise diligenceintheircapacityas customers againsttheExecutiveBoard resulting from violations ages bythecompany,shareholders, creditors, competitorsand EVN hasarrangedforD&Oinsurancetocoverclaimsdam- Supervisory Board. payment. Allsuchcontractsare subjecttotheapproval ofthe aries thatwouldentitlehim cluded a contractualagreement with EVN or one of its subsidi Measures tosupportwomen(Rule60): Remuneration oftheSupervisoryBoard (Rule51): Contracts requiring theapproval oftheSupervisory Directors andofficers insurance(D&Oinsurance,Rule 30): NomemberoftheSupervisoryBoard hascon- /her tomore thananinsignificant /her al andpr EVN iscommitted ofessional edu- g holidays, ment Corporate governance reportCorporate governance pro- The - -

NÖ Landes-Beteiligungsholding GmbHon13October2005. settle entered intoduringthereporting year. Agroup andtax (previous year:10.0%). (previous year:33.0%)and2.0%forotherconsultingservices services (previous year:57.0%),63.0%taxconsultingservices the following:35.0%represented auditingand audit-related amounted toEUR1.8m(previous year:EUR2.1m)andcovered ThefeeschargedbyKPMGin2012/13 gesellschaft, Vienna. und Steuerberatungs- KPMG Austria AG Wirtschaftsprüfungs- financialyearwere auditedby ments ofEVNforthe2012/13 company during2012/13. shares bymembersofthecorporatebodieswere reported tothe to theapplicableworkscouncil. defined threshold prepared therequired report andsubmittedit companies intheEVNGroup withaworkforce abovethelegally remuneration report (§ a workforce aboveacertainthreshold tosubmitabiannual women intheapplicableprofessional groups. women toalevelthatmirrors thec EVN’s objectiveforthemediumtermistoincrease theshare of ures forimprovement are recommended. Theimplementationof audits are reported to the respective business units and meas- before implementation.Anyproblem areas identified duringthe these plansare approved bytheresponsible corporatebodies annual auditplansbasedonthe results ofriskassessments, and Bulga audit departmentswere also establishedatEVN’s subsidiariesin and businessunitsthroughout theEVNGroup. Separateinternal Board. Itisresponsible forauditingandcontrolling processes cutive Boar No The AustrianEqualOpportunityActrequires companieswith Directors‘ Dealings(Rule73): EVN’s auditdepartmentreports internal directly totheExe audit Internal risk managementatEVN audit and Internal Auditor’s fees: ment agr r ia andMacedonia.Theinter business d andtotheAuditCommitteeofSupervisory eement wasconcludedbetweenEVNAGand

relationships The annualandconsolidatedfinancialstate- — Remuneration report,audit Internal

11a oftheEqualOpportunityAct).All

and riskmanagementatEVN EVN Full Report2012/13 with nal auditdepartmentsprepare

urr No purchases ofEVNAG

e a related party n t educationallevelsof were 57

Corporate governance report the measures approved by EVN’s management is then evaluated EVN’s compliance organisation was revised in 2011/12, and a in follow-up audits. No serious deficiencies were identified that fundamental commitment was made to develop a compliance man- could endanger the strategy and objectives of the EVN Group. agement system (CMS). The staff department Corporate Compli ance Management (CCM) was established as of 1 October 2012 Risk management to develop, manage and improve the CMS; this department The primary goal of risk management at EVN is to protect the reports directly to the Executive Board. The CMS defines a stand- Group’s current and future earnings potential. Risks are recorded ardised framework for the entire Group, which is designed to and analysed based on a centrally managed two-stage process ensure honest and legally compliance behaviour in everyday busi- that provides the responsible employees in the EVN Group with ness activities. methods and tools to identify and evaluate risks. The respective business units, which are also responsible for risk management, The CMS is based on three key elements: prevention (EVN’s communicate their risk exposures to the central risk manage- Code of Conduct, training, etc.), identification (audits, whistle- ment department, which classifies, analyses and evaluates risks blowing procedure, etc.) and reaction (investigation, improve- across the entire Group. Measures to minimise corporate risks ment, etc.). are also identified and their implementation is monitored. The two-stage risk management process is supported by standardised The CMS includes the following functions and units: guidelines and carried out throughout the Group on an on-going – Chief Compliance Officer (CCO): ensures a modern, Group- basis. The resulting risk analysis is presented to the Executive wide CMS that covers all Group functions. Board and the responsible managing directors at regular intervals – Decentral/National Compliance Officer (DCO, NCO): respon- by the Group Risk Committee. A detailed description of EVN’s sible for implementing the compliance programme in the risk landscape can be found in the management report on the individual segments/countries based on a risk assessment. 2012/13 financial year. – Compliance Committee (CC): established as an internal advisory committee for the CCO to monitor and evaluate Issuer compliance compliance violations, to provide advice on basic issues and In accordance with the regulations defined by the Austrian to further develop the CMS. Stock Corporation and Stock Exchange Acts, the Austrian Issuer Compliance Code and the Directive of the European Parliament The roles and responsibilities of all persons involved in the on insider dealing and market manipulation, EVN has developed CMS were defined to create a uniform understanding of com- a comprehensive set of rules to prevent the misuse of insider pliance. Concrete measures were also developed following the information. Twenty permanent and five ad-hoc areas of EVN’s completion of risk assessments in the individual areas. The first business have been designated as strictly confidential, and the implementation phase of the new CMS was directed to EVN’s involved employees undergo regular training. In line with the managers, since they have a key function and serve as role models Austrian Stock Exchange Act, compliance and confidentiality for the establishment of a sustainable compliance culture. are monitored and evaluated by a designated compliance officer who reports directly to the Executive Board. The regular controls In a second step, EVN employees will be familiarised with carried out by the compliance officer in 2012/13 did not identify these interrelated themes in 2013/14. The managers, together any deficiencies. with the responsible DCOs, organise and hold training sessions for the employees in their respective areas. These courses focus EVN Code of Conduct on the core areas of compliance, i.e. the prevention of corrup- EVN places great importance on the integrity and legally com- tion, antitrust and competition law as well as stock exchange pliant behaviour of all its employees and business partners. As an requirements; additional courses are also offered to deal with international energy and environmental services company, the specific risk exposure. management and employees of EVN have a far-reaching responsibility and role model function both in Austria and abroad. The Special compliance training sessions are offered for the Code of Conduct, which was developed in a Group-wide process Executive Board and Supervisory Board as needed. and updated during 2012, forms the basis for all compliance measures at EVN.

58 EVN Full Report 2012/13 Code-of-conduct.aspx Maria Enzersdorf,6November2013 n aoyos ad h iett o te eotn pro is person reporting never revealed. the of identity the and anonymous, and possible voluntary is system report This Conduct. of to Code EVN‘s of violations framework a provides which procedure,

implementing EVN’svaluesduringtheirworkingactivities. in employees all support to designed is and groups stakeholder

The EVN Code of Conduct can be found under whistle-blowing the is CMS the of element important An Is otn i bsd n V’ various EVN’s on based is content Its . Peter Layr Spokesman oftheExecutiveBoard t/ www.evn.at/ Corporate governance report governance Corporate

the ACGCisavailableunder § to pursuant Enzersdorf, Maria AG, EVN of report governance rate Steuerberatungsgesellschaft, Vienna, on their audit of the corpo on meeting its 12 December 2012inaccordance in withRule18aoftheACGC. organisation compliance the of status and h rpr b KM Asra G itcatpüug- und Wirtschaftsprüfungs- AG Austria KPMG by report The by KPMGAustria Audit oftheAustrianCorporateGovernanceCode The Supervisory Board received a report on the content, goals

96 (2) Stock Corporation Act, concerning compliance with compliance concerning Act, Corporation Stock (2) 96 Stefan Szyszkowitz Member oftheExecutiveBoard — Internal audit and risk management at EVN at management risk and audit Internal — www.investor.evn.at EVN Full Report 2012/13 Report Full EVN .

59 -

Corporate governance report Report of the Supervisory Board

Dear Ladies and Gentlemen,

The 2012/13 financial year was influenced by the tense economic environment and distortions on the European energy markets. Continuing uncertainty on the international capital markets as the result of government crises in a number of European countries, political uncertainty in North Africa and the Middle East and, last but not least, decisions over monetary policy by the US Federal Reserve led to a decline in economic performance. The European energy markets were characterised by high, and at the same time intermittent, volumes of electricity generated from renewable energy sources, above all windpower and photovoltaic. This situation was reflected in an occasional oversupply of electricity as well as highly volatile market prices. In spite of this on-going difficult environment, EVN remained a reliable partner for its customers in 2012/13.

The Supervisory Board actively monitored and supported EVN’s strategic steps as part of its designated responsibilities. Five plenary meetings were held during the reporting year, in which the Supervisory Board fulfilled the tasks and duties required by legal regulations and the company’s by-laws. In a closed conference, an expert with practical and theoretical legal experience provided the Supervisory Board with detailed information on corporate compliance.

The Executive Board provided the Supervisory Board with regular, timely and comprehensive reports on all relevant aspects of the Group’s business development, including the risk position and risk management, as well as the development of key Group companies. This reporting enabled the Supervisory Board to continually supervise and support the Executive Board’s management activities. The advisory and control functions exercised by the Supervisory Board within the framework of open discussions with the Executive Board did not lead to any objections. Recommendations by the Supervisory Board were taken up by the Executive Board.

Changes on the Supervisory Board The Annual General Meeting on 17 January 2013 elected Thomas Kusterer to the Supervisory Board to replace Hans-Peter Villis who had resigned. Leopold Buchner, an employee representative on the Supervisory Board, resigned from this body on 30 June 2013 owing to his retirement. The Works Council subsequently delegated Monika Fraißl as an employee representative to the Supervisory Board as of 1 July 2013. The Supervisory Board would like to thank these two former members for their successful contributions to the work of the Supervisory Board.

Changes on the Executive Board The Supervisory Board decided, at the present time, not to fill the position on the Executive Board that resulted from the resignation and retirement of Herbert Pöttschacher at the end of his term of office. The distribution of duties among the members of the Executive Board was amended, and the rules of procedure for this body were revised.

The resulting deviation from the requirements of the Austrian Corporate Governance Code is explained in the corporate governance report under Rule 16.

The Supervisory Board would like to thank Herbert Pöttschacher for his 28 years of successful work on the Supervisory Board, the Advisory Board and the Executive Board of EVN.

Other major resolutions passed by the Supervisory Board The other major decisions made by the Supervisory Board in 2012/13 included the approval of

60 EVN Full Report 2012/13 Board members andguidelinesdefinedby the SupervisoryBoard toensure its ing processes oftheSupervisoryBoard anditscommitteesaswelltheremuneration ofSuper audit,riskandcompliancemanagementsystems. internal current control, developmentsin the operatingsegments anddealt extensively with the internal statements andontheappointmentworkofauditor. TheAuditCommitteealsodiscussed the fullfinancialyear, onthepreparation oftheresolution fortheapproval oftheannualfinancial two meetingsduring2012/13,whichfocusedchieflyonsix-month results andtheoutlookfor pertaining torelations between thecompanyandmembersofExecutiveBoard. Nominating Committee,andtheWorking Committee. Audit Committee,thePersonnelCommitteewhichsimultaneously servesasaRemunerationand cedure fortheSupervisory Board, the Supervisory Board establishedthe following committees: the The results ofthesurveywere discussedataplenary session. naire, whichfocusedprimarilyontheorganisationandworkingprocesses oftheSupervisoryBoard. required Code.Thisevaluationtooktheformofaquestion- bytheAustrianCorporateGovernance accordance withRule18aoftheACGC. involved areport tothisbodyonthecontent,goalsandstatusofcomplianceorganisationin tion oftwodeviationsthatarereport. explainedinthecorporategovernance and the Executive Board workings of the Supervisory Board as well as the internal with the excep- thecooperationbetweenSupervisoryBoardits activities.EVNcomplieswithallrulesgoverning The SupervisoryBoard strivestoconsistentlycomplywiththeprovisions ofthecodethatrelate to to reflect theJuly2012changesinAustria’s SecondStabilityActisbindingforEVNunderthis law. Code code byEVNbeginningin2012/13.TheamendmentoftheAustrianCorporateGovernance Code. The Supervisory Board approved the implementation of the January 2012 version of the detailed informationoncurrent developmentsinBulgariaandMoscow. by a2011amendmenttoAustriancompanylawandthecancellationofselectedshares aswell pipeline networkswere approved. of renewable energy.Intheenvironmental servicesbusiness,investmentstoacquire localwater networks, inwindparksforelectricitygenerationandnetworksthetransportation also covered the approval of investments in the Guntramsdorf co-generation plant and the heating of theoutstandingliabilityforAshtahydropower plantproject. Theapproval ofthebudget Hydropower ShAtoStatkraftAS.Anotherimportantresolution involvedthepremature refinancing the 2013/14budgetforEVNGroup andtheapproval ofthesale50%stakeinDevoll The corporate governance reportThe corporategovernance provides additionalinformation onthecompositionandwork- The Working Committee did notmeetduringthereporting year. TheAuditCommitteeheld The PersonnelCommitteemetfourtimesduringthe2012/13financial yearanddealtwithissues In linewiththerequirements Codeandtherulesofpro oftheAustrianCorporate Governance - The Supervisory Board conducted a self-evaluation of its activities during the reporting year as A separatepointoftheagendaforSupervisoryBoard meetingon12December2012 As alistedcompany,EVNiscommittedtocompliancewiththeAustrianCorporateGovernance Code, SupervisoryBoardAustrian CorporateGovernance committees The SupervisoryBoard alsoreceived aseparatereport ontheconversionofshares asrequired independence.

visory

Report oftheSupervisoryBoard EVN Full Report2012/13 61

Corporate governance report Annual financial statements and consolidated financial statements KPMG Austria AG Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna, was appointed to audit the financial statements for the 2012/13 financial year from 1 October 2012 to 30 September 2013. This firm examined the annual financial statements of EVN AG as of 30 September 2013, which were prepared in accordance with Austrian accounting regulations, and the management report submitted by the Executive Board. KPMG presented a written audit report on the audit and issued an unqualified opinion. Following detailed analysis and discussions by the Audit Committee and the Supervisory Board, the Supervisory Board approved the following documents that were submitted by the Executive Board: the annual financial statements as of 30 September 2013 together with the notes, management report and corporate governance report; and the recommendation for the use of profits. The annual financial statements as of 30 September 2013 were thereby approved in accordance with § 95 (4) of the Austrian Stock Corporation Act. The consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) and also audited by KPMG Austria AG Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna, which issued an unqualified opinion. The Supervisory Board approved the consolidated financial statements together with the respective notes and management report.

In conclusion, the Supervisory Board would like to thank the Executive Board and all employees of the EVN Group for their performance and commitment during the 2012/13 financial year. Specia l thanks are also directed to EVN’s shareholders, customers and partners for their confidence in the company.

Maria Enzersdorf, 11 December 2013

On behalf of the Supervisory Board:

Burkhard Hofer President

62 EVN Full Report 2012/13 Management report 16 the Green Climate Fund whose creation was approved by the 2020. Anagreement was not reached financing for concerning tiated withallcountriesbeginningin2015andtakeeffect in climateprotectioning international agreement thatwillbenego- ment period. Japan andNewZealandwillnottakepartinthissecondcommit- for apossibleincrease inthetargetedreduction. Russia, Canada, path to reach this level by 2014 will be reviewed in preparation to cuttheirgreenhouse emissionsby25%to40%,whereby the worldwide CO 2020. These countries, in total, are responsible for nearly 14% of other European countriesagreed toextendtheKyototargets conference, Australia,themembersofEuropean Unionand the KyotoProtocol, whichexpired inDecember2012.Atthis ber 2012.Itsgoalwastoconcludeafollow-upagreement to in Doha,thecapitalofQatar,- from 26Novemberto8 Decem schemes forrenewable energy. prices. Theyalsocalledforthedevelopmentoflong-termsubsidy rity, reduce greenhouse gasemissionsandlimittheriseinenergy European Parliamentthat are designedtoensure supplysecu- various countries have proposed a number of measures to the of discussions. In this connection, major utility companies from supply securityaspartofanewmarketdesignintothefocus generation from windpower and photovoltaic sources has shifted mental changes.Thecontinuous,butvolatileincrease inenergy ber 2013. Nations ClimateChangeConference inWarsaw duringNovem- generation from renewable energysources andtheintroduction include animprovement inenergyefficiency, a further increase in and distributionofelectricity.The goalsofenergypolicy–which expansion ofefficient networkinfrastructure forthetransmission of sufficient reliable generationcapacityandalsosupportthe to theconsequencesofclimatechange. USD 100bnperyear, beginningin 2020, to supportadjustments end of2011.Thisfundshouldprovide developingcountrieswith th A generaltimetablewasapproved fortheadoptionofabind- The 18 climatepolicy International Legal framework The European energymarket iscurrently undergoingfunda- European framework European energypolicy A futur The negotiationsar UnitedNationsClimateChangeConference inMexicoatthe th e-oriented energypolicymust ensure theprovision UnitedNationsClimateChangeConference washeld 2 emissions.Theyhaveannouncedtheirintention e beingcontinuedatthenextUnited

required fortheEuropean electricityandgasnetworks. for therealisation oftheestimatedEUR200bninvestments measures are intended to create more attractive conditions European Union under the “Connecting Europe“ facility. These up to30%.Inaddition,subsidieswillalsobeavailablefrom the approval process, whichshouldreduce administrativecostsby interest willnowbehandled inamore transparent andfaster projects toexpandenergy infrastructure thatare ofcommon and passedtherelated directive inMarch 2013.Cross-border mended guidelinesforatrans-European energyinfrastructure emission tradingsystemisexpected. the resulting declineinprices.Ageneralstructuralreform ofthe certificates from thesecondtradingperiodandthereby counter ure is expected to reduce the surplus of CO same, butwillbespread overalongerperiodoftime.Thismeas- volume ofcertificates forthethird tradingperiod remains the period (2013 emission trading certificates not issued during the third trading cates. Thisresolution rescheduled theauctionof900 millionCO to temporarilyreduce thesupplyofemissiontradingcertifi- lic sectortakingaleadingrole. based onmandatorysystemsorpoliticalmeasures, withthepub- ment ofenergyefficiency incompaniesandprivatehouseholds binding measures forimplementation.Planscalltheimprove- realised alongtheentire energyvaluechaininline with legally for energysupplycompanies.Efficiency improvements are tobe a mandatorysystemwithanannualreduction targetof1.5% buildingseachyear andtheintroduction3% ofgovernment measures were definedtoreach thisgoal,e.g.therenovation of improvement inenergyefficiency by2020.Anumberofconcrete each memberstatetosetamandatorynationaltargetfor20% tive 2012/27/EU)waspassedon25October2012andrequires lations toincrease energyefficiency. Therelated directive (Direc- the designoffuture European energysystems. Consequently, thesetypesofeffects are ofgreat importancefor ers and impair Europe’s competitiveness as a business location. of smartmetering–couldcreate afinancialburden forcustom- The European Councilapproved theCommission’s recom- EU energyinfrastructure measures The European Parliamentpassedaresolution on3 July 2013 EU emissionstradingscheme On 14June2012,theEUmemberstatesagreed onnewregu- EU energyefficiency directive

–

2020) to2019andthefollowingyears.Thetotal EVN Full Report2012/13 2 emission trading 63 2

Management report The legal framework in Austria storage and transmission of data were defined by Austrian law Amendments to the ElWOG and GWG (ElWOG and GWG). The Data Format and Information on Usage Amendments to the Electricity Management and Organi Directive (“Datenformat- und Verbrauchsinformationsdarstel- sation Act (“Elektrizitätswirtschafts- und -organisationsgesetz”, lungsverordnung“, DAVID-VO 2012) includes detailed rules for ElWOG) and the Gas Management Act (“Gaswirtschaftsgesetz”, the information that suppliers must provide to customers. The GWG) were published on 6 August 2013. technical requirements for intelligent gas measurement devices were regulated in the Intelligent Gas Measurement Device Spec- A key part of these amendments is the implementation ifications Directive (“Intelligente Gas-Messgeräte-Anforderungs- of EU Directive 1227/2011 (REMIT Directive), which aims to Verordnung”, IGMA-VO). prohibit insider trading and market manipulation. In addition, market participants are required to register with the Agency Based on the legal regulations for unbundling, EVN Netz for the Cooperation of Energy Regulators (ACER) and to report GmbH was renamed Netz Niederösterreich GmbH after the end transactions on the wholesale energy market. ACER was of the reporting year on 1 October 2013. established as a European supervisory authority for energy trading. Prior to the implementation of the ElWOG and GWG Network service directive for electricity 2012 plus amendments, the Wholesale Energy – Transaction Data – amendment in 2013 Archiving Directive (“Energiegroßhandels-Transaktionsdaten- This directive and its amendment set the safety, reliability and Aufbewahrungsverordnung“, ETA-VO) from 9 October 2012 quality standards for services provided by distribution network defined a five-year archiving period for data on wholesale operators to network users and other market participants and energy transactions carried out on and off a commodity define the indicators to be used for monitoring compliance. The exchange. This data must be made available on request to regulations cover the services to be provided for network con- E-Control, the Austrian Antitrust Authorities and the European nection, disconnection and the subsequent re-establishment of Commission. network access, the procedures and information requirements for planned service interruptions, voltage quality, the record- The amendments to both laws also include the adjustment ing of usage data, general customer information and complaint of regulations for changing suppliers. The maximum period for management. a change of suppliers is limited to three weeks and is not tied to a specific cut-off date for consumers. The electronic change Energy Management Act in suppliers takes place over a platform that is operated by the The Energy Management Act (“Energielenkungsgesetz clearing office. 2012“) replaced the previous law issued in 1982 as of 26 Feb- ruary 2013. It entitles the minister of economic affairs to issue ElWOG (§ 79a) requires the mandatory identification of the direct orders to utility companies to avert a threatening or actual electricity delivered to end consumers. The operators of pump interruption in energy supplies for Austria in order to guarantee storage power plants are also entitled to receive proof of origin supply security. The areas covered by this law are gas, electricity from their electricity provider or other supplier and, beginning on and now also heat, whereby combined heat and power plants or 1 January 2015, must provide this certificate together with their district heating companies with a thermal bottleneck capacity of own production. at least 50 MW or annual heating output of more than 300 GWh are also included. The legally mandated labelling of electricity on EVN’s invoices was audited by KPMG Austria AG Wirtschaftsprüfungs- und Regulatory system for electricity and natural gas Steuerberatungsgesellschaft, Vienna. The environmental impact The introduction of a regulatory account is defined for elec- of the supply mix used by EVN Energievertrieb GmbH & Co KG in tricity network operators in § 50 ElWOG and for gas network

2011/12 totalled 270.64 g/kWh of CO2 emissions and 0 g/kWh operators in § 71 GWG. This account is intended to compensate of radioactive waste. variances between the actual revenues from network tariffs and the officially defined revenues. It represents a break with the GRI indicator: Legally prescribed information on products previously applied method, under which the tariffs were deter- and services (PR3) mined ex ante on the basis of cost and volume forecasts. The new regulatory period for natural gas started on 1 January 2013 In connection with the introduction of intelligent measure- and covers five years. The current regulatory period for electric- ment devices (smart meters), extensive rules for the recording, ity networks ends on 31 December 2013.

64 EVN Full Report 2012/13 Weighted average costofcapital(WACC) before taxes,nominal Next regulatory adjustment Inflation Regulatory method Start oftheregulatory period General productivity factor Individual productivity factor Individual Duration oftheregulatory period 3) 2) 1) Regulatory authority for electricityandnaturalgasinAustria Regulatory modelfornetworkusagetariffs 4) long-term procurement contractswithfixedpricesandvolumes. regional suppliers are tied to the state utility company through are substantiallylowerthantheprevailing marketprices,andthe market ishindered is underscored by two facts: regulated prices public suppliers.Evidencethattheliberalisationofelectricity operations, networkdeliveriestoendcustomersand regulated licensesthatcover generation,transmission,system Water RegulatoryCommission)determinesthepricesfor directly. ers. NEKalsosuppliesanumberofmajorindustrialcustomers Energo-Pro sellelectricitytoendcustom - andCEZwhich, inturn, for theregional networkoperators andelectricityproviders EVN, Elektricheska KompaniaEAD(NEK)servesasawholesalesupplier in thebusinesssegment.ThestateutilitycompanyNatsionalna market, butrecent monthsbrought thefirstsignsof competition customers are stillunabletoenjoythebenefitsofacompetitive since 2007 according to the country’s energy law. Household responsible forsalesanddistribution. is responsible fornetworkoperations,andEVNBulgariaECis law asof1October2006.EVN’s subsidiaryEVNBulgariaEP and electricitysuppliersinBulgariawasenactedintocorporate and naturalgasmarkets,theunbundlingofnetworkoperators mitted toselect theirownsuppliers.Thisapplies toroughly

T Electricity: 50%oftheachievedpr T Adjustment ofW Natural Gas:Gainsfrom costreductions remain withthecompanyduringregulatory period. Business customers inthemedium-voltagenetwork are per The Bulgarian regulatory authority SEWRC (State Energy and The energymarketinBulgariashouldhavebeenderegulated In accordance withtheEUdirectives fordomesticelectricity Bulgaria EuropeThe legalframeworkinSouthEastern he network operator price index consists of consumer (30%) and building price (40%) indices as well aswageincrease aswell index. price(40%)indices he networkoperator priceindexconsistsofconsumer(30%)andbuilding annualinvestmentsare year. bytheregulatedaddedtoRABinfollowing he interest-bearingassetbase(RAB).The assetbaseisdefined 4) ACC andproductivity factors 3) 1) oductivity increases are passedontoendcustomersduringtheregulatory period.

2) lcrct cret Electricity Electricity (current) nulajsmn nulajsmn Annualadjustment Annualadjustment Annual adjustment - E-Control GmbH Revenue caps costs ofrenewable electricityandfor from highlyeffi - method usedto calculatethecompensationfor theadditional they also approved a change,retroactive to 1July2012,inthe 5 March 2013 andby4.2%on1August2013.On16July2012, by 13.6%asof1July2012,but cutthesepricesby7.3%on plants from thegridif necessary. the network operators are permitted to disconnect individual supply securitydespitethehigherfeed-inofrenewable energy, of renewable energiesto16.0% by2020.Inorder toguarantee energy capacity.Itshouldalsosupportanincrease intheshare energy efficiency, protect endcustomersandincrease renewable liament inMay2011isintendedtocreate aliberalisedenergy accordance withamethod definedbytheregulatory authority. a supplier of last resort to end customers must be calculated in ditions upto30June2015.Thepricesfortheelectricitysoldby resort topurchase electricityfrom NEKatfreely negotiatedcon- ment to the Bulgarian energy law requires the suppliers of last utility companyNEKserveassuppliersoflastresort. Anamend- other utilitycompaniesCEZandEnergoPro, andthestate-owned plier oflastresort takesoversupplyresponsibility. EVN, thetwo supplier through nofaultoftheirown,thelegallydefinedsup- another supplierorcannotreceive electricityfrom their chosen EAD. Forcustomersinthisnetworksegmentwhodonotselect its prices. EVNisactiveinthederegulated marketsegmentthrough covered by EVN. All other customers are supplied at regulated Bulgaria,thesupplyarea companiesinSouthEastern 1,400 market, ensur 01.01.2010 01.01.2014 The Bulgarianregulatory authorityraisedelectricityprices The EnergyStrategy2020approved bytheBulgarianPar Bulgarian 4 years 0.25% 1.95% 7.0% trading company EVN Trading South East Europe e secure andreliable energysupplies,increase

Management report E-Control GmbH Revenue caps 01.01.2014 01.01.2019 (new) 5 years 0.36% 6.42% 1.25% EVN Full Report2012/13 Natural gas(current) —framework Legal E-Control GmbH Revenue caps 01.01.2013 01.01.2018 5 years 0.00% 6.42% 1.95% 65 -

Management report cient co-generation plants. The large number of new supply hold customers is not expected to take effect before 1 April 2014 contracts with renewable electricity producers and the related and for household customers not before 1 January 2015. rise in feed-in volumes led to a substantial increase in electricity procurement costs for EVN Bulgaria EC. Bulgarian legal regula- In July 2012, the regulatory authorities eliminated the low tar- tions for renewable energy require the reimbursement of these iff structure applicable between 1 pm and 4 pm each day. Sun- additional costs by end customers. On 1 August 2013 the revised days were excluded from this change. The goal was to alter the method to determine the compensation for the additional costs population’s consumption habits and thereby reduce the need for of renewable electricity and for electricity from highly efficient expensive electricity imports during the winter. A further change co-generation plants was again amended, and the increase in in the regulatory framework involves network connections. The procurement costs for the sales companies was retracted. The fees for standardised connections are now based on a regulated resulting claims were recognised as a receivable following a con- price per kilowatt. For more technically demanding non-standard firmation by the regulatory authority that EVN should generally connections, this base price is increased by the actual connection be compensated for the uncovered costs. Investment protection costs and, if applicable, the costs for the technical adaptation of proceedings were also opened at the International Center for the the network. The time periods for the implementation of net- Settlement of Investment Disputes, an institution created by the work connections were reduced, whereby network operators World Bank. The background for these proceedings is formed cannot be held liable for delays outside their sphere of influence. by the steps taken by the Bulgarian regulatory authorities and government offices in connection with the determination of elec- The regulatory authorities followed a first price increase in tricity prices and the compensation for public obligations relating January 2012 with an increase of 9.8% in the electricity price to renewable energy. for end customers during August 2012. Both adjustments were intended, above all, to cover the additional costs for the pro- Macedonia curement of energy on the wholesale market by EVN Macedonia The amendment of the energy law in 2011 led to a signifi- since 2012. These added costs are attributable to two factors: cant change in the operating environment for the energy sector the purchases required to meet the surplus demand that is not in Macedonia. Among others, it paved the way for the legal covered by Macedonian power generating capacity, and the net- unbundling of electricity generation, network operations and work losses which, since 1 January 2012, can no longer be pur- distribution. EVN Macedonia Elektrani DOOEL now operates as chased at regulated prices but must be covered on the wholesale a generation company, while EVN Macedonia AD continues to market. As of 1 July 2013, the regulatory authorities announced cover the network business in Macedonia. EVN Macedonia AD an average reduction of 3.0% in electricity prices for end cus- will also continue to operate as a sales company until the unbun- tomers as well as an increase in wholesale prices and the tariffs dling is completed. After the finalisation of the remaining open for the state-owned transmission network operators. points in the law, EVN Macedonia Elektrosnabduvanje DOOEL will take over sales activities. Unbundling is seen as an important Croatia requirement to meet the primary goals, which include the trans- EVN has been active in the counties of Zadar, Split-Dalmatia formation of the energy market into a deregulated system and its and Sibenik-Knin through its subsidiary EVN Croatia Plin d.o.o. integration in the international electricity markets. since the concessions for the construction and operation of a natural gas network were granted in 2009 and 2010. The con- The accompanying laws for the introduction of a deregulated cessions have a 30-year term and cover natural gas distribution electricity market were prepared in 2012 and 2013. They cover and supply. This region has 130,000 potential customer connec- general market rules, the tariff system and the determination tions. Operations by the natural gas network and connections for of suppliers of last resort. The introduction of these rules was the first customers in Zadar started in June 2012. postponed and will now also include an implementation plan prepared by the regulatory authorities. The electricity market in Croatia joined the European Union as its 28th member on Macedonia is still heavily regulated. The main electricity producer 1 July 2013. This membership was also connected with changes is the state-owned AD ELEM, while the state-owned transmission in energy law to reflect the applicable EU standards. Croatian network is operated by AD MEPSO, another state-owned com- energy law was adapted as the framework for all electricity and pany. EVN Macedonia is active in the end customer market, while natural gas activities, and the responsibility for regulating and a small number of larger customers is now supplied directly by monitoring the market was transferred to the regulatory author- AD MEPSO. The deregulated electricity market for non-house- ity. An incentive system was introduced for the determination of

66 EVN Full Report 2012/13 Investment factor Recognised networklosses Productivity factor before taxes,nominal Weighted average costofcapital(WACC) he revenue capscomprisethe recognised operating expenses,theamortisation anddepreciation astherecognised as well return ontheregulatory assetbase(RAB). 2) 1) Regulatory method Duration oftheregulatory period Next regulatory adjustment Start oftheregulatory period Regulatory authority in BulgariaandMacedonia Regulatory modelfornetworkusagetariffs sale closedon7May2013. agreement bytheAlbanianparliament on 28March 2013,the AS. Followingtheapproval oftheamendmenttoconcession the jointventure wassoldtotheNorwegianpartnerStatkraft Albania, DevollHydr to theRepublicofAlbania. over the endofthisperiod,Ashtapowerplantwillbeturned joined byEVNin2009,wasconcludedforatermof35years.At The concessionagreement, whichtookeffect in2008 andwas energy companyKorporateElektroenergjetike Shqiptare (KESH). tricity generatedbythisplantisdelivered tothestate-owned purchase agreement, whichcoversaperiodof15years, theelec- Albanian ministry The certificate ofcompletionwasissuedbytheresponsible 2013. and fulloperationswithbothsectionsfollowedinApril the project partners,EVNandVerbund, duringSeptember 2012 ket willalsobepossible. be deregulated andnaturalgaspurchases onthewholesalemar As of 1 April 2014, the market for household customers should prices forbusinesscustomershavebeenderegulated since2012. improving theforecast qualityofnetworktariffs. Naturalgas in thenaturalgassectorfrom theprevious onetofiveyearsis number ofcustomers.Theextensionther field projects withhighstart-upinvestmentsandaninitiallylow network tariffs, whichalsocoverstherequirements ofgreen-

Annual r T EVN withdrew from thesecondpowerplantproject in The firstsectionoftheAshtahydropower plantwasopenedby Albania eview andapproval ofcompany’s investmentplansbytheregulatory authority 2) 1) on 21August2013.Inaccordance with the opower, during 2012/13. Its50%stakein opower, during2012/13.

egulation period State Energy andWater Regulatory Commission Management report Electricity Bulgaria Revenue caps - 01.08.2015 01.08.2013 (SEWRC) development, asignificant improvement, withgrowth ofupto 0.3% decrease inMacedonia’s GDPin2012.Incontrasttothis in 2014. year, butsubstantiallystronger growth ofupto2.5%isexpected ment. GDPgrowth in2013isexpectedtoreflect the previous also remained weakchieflyduetothehighlevelofunemploy- the mainreason forthisadjustment;butprivateconsumption downward slightly.Thesubstantialdeclineinexportgrowth was full 12 monthsof2013,butaplus1.7%isexpectedin2014. a moderate increase during the second half-year and stronger environ of 2013.However, theimprovement intheinternational in 2014. 2013, butsustainablerecovery andgrowth of1.4%are expected nomic developmentisforecast toremain reserved throughout crisis states have started to produce encouraging results. Eco- slowed, indicatingthatthestructuralreforms intheEurozone’s inItalyandSpainalso this positivedevelopment.Thedownturn quarter of2011.Leadingindicatorspointtoacontinuation in theEuropean Union(EU)andthefirstgrowth sincethethird development in2014.Gr 2 years 10.0% 7.0% Economic weaknessintheneighbouringcountriesledtoa The 2013 forecasts forthe Bulgarian economy were revised The Austrianeconomystagnatedduringthefirstsixmonths The secondquarterof2013brought anendtotherecession General businessenvironment yes no ment andconfidenceindicatorsar — Legal framework,Generalbusinessenvironment State Energy andWater Regulatory Commission Bulgaria Heat Revenue caps 01.08.2014 01.08.2013 owth isunlikelytoexceed0.5%forthe (SEWRC) 1 year 7.6% yes no no EVN Full Report2012/13 e leadingtohopesof Macedonia Electricity Energy Regulatory Revenue caps Commission 01.01.2015 01.01.2012 3 years 14.0% 6.7% (ERC) yes no 67

Management report 2.0%, is forecast for 2013. This trend should continue and lead ing degree total in Lower Austria rose by 8.5 percentage points to growth of up to 3.1% in 2014. during the reporting year. In contrast, the heating degree total in Bulgaria and Macedonia fell by 20.2 and 25.3 percentage points, The economic situation in Croatia is still tense, despite the respectively, after the coldest winter on record in 2011/12. country’s accession to the EU on 1 July 2013. The 2.0% GDP decline in 2012 is expected to be followed by a further drop of The development of primary energy prices also differed during up to 1.0% in 2013. High unemployment has also proven to the reporting year. The average euro price for crude oil Brent be a negative factor here. There are no expectations of recovery equalled EUR 82.9 per barrel, or 3.5% below the comparable before 2014, when growth should reach up to 1.5%. 2011/12 value. The negative effects of the tense situation in the Near East were contrasted by high crude oil stocks in the In Albania, reforms were halted by internal political disputes USA, above all in spring 2013. Additionally, demand was lower between the opposition and the government. This situation is because of the general economic weakness that also took hold only now starting to slowly resolve after the parliamentary elec- in the emerging economies like China. In contrast, the average tions in June 2013 and the formation of a new government. European Energy Exchange (EEX) price for natural gas was 10.9% Economic growth of 1.3% in 2012, which is robust compared higher than in the previous year at EUR 26.9 per MWh for the with the neighbouring countries, should be followed by a GDP reporting period. The price of coal declined 17.2% to EUR 63.1 increase of up to 2.0% in 2013 and up to 3.0% in 2014. per tonne due to higher stocks from US coal imports and weaker

demand. The prices for CO2 emission certificates fell by 33.0% year-on-year to EUR 5.3 per tonne.

Energy sector environment The international energy markets were characterised by a further drop in both spot market and forward prices for base The development of business at EVN is influenced to a sig- load and peak load electricity in 2012/13. The main factor for nificant degree by external factors that are completely or parti this development was an increase in electricity generation from ally outside the company’s control. The main driver for energy renewable energy sources and the resulting surplus production consumption by households is the weather, which has an effect, capacity, which led to extremely volatile price fluctuations. The above all, on the demand for natural gas and heat. The demand spot market prices for base load electricity declined 13.5% year- for energy by industrial companies is dependent on the develop on-year to EUR 38.8, while the prices for peak load electricity ment of their business which, in turn, is linked to the general were 9.5% lower at EUR 49.9. In order to ensure supply security, business environment. EVN’s margins and earnings are also influ- EVN regularly purchases energy on the forward market. The for- enced by the development of primary energy prices and the end ward market prices have an effect on EVN’s earnings, but with customer prices that can be realised on the market. a delay. The forward prices for base load and peak load electricity applicable to the reporting year equalled EUR 47.5 and A regional analysis shows considerable differences in temper- EUR 58.8 per MWh, respectively, and were 13.3% and 12.3% atures during 2012/13. After a mild period in 2011/12, the heat- lower than in the previous year.

GDP growth % 2014f 2013e 2012 2011 2010 EU-271) 2) 1.4 –0.1 –0.3 1.6 2.1 2) 3) Austria 1.7 0.5 0.8 2.7 2.3 Bulgaria1) 2) 4) 1.7–2.5 0.5–0.9 0.8 1.8 0.4 Macedonia5) 6) 2.0–3.1 1.0–2.0 –0.3 3.1 1.8 Croatia1) 2) 4) 6) 0.2–1.5 –0.5–(–1.0) –2.0 0.0 –2.3 Albania4) 5) 6) 2.5–3.0 1.8–2.0 1.3 3.1 3.9

1) Source: “European Economic Forecast, Spring 2013“, EU Commission, May 2013 2) Source: “Prognose der Österreichischen Wirtschaft 2013-14“, IHS, October 2013 3) Source: “Prognose für 2013 und 2014: Erste Zeichen einer Konjunkturerholung“, WIFO, October 2013 4) Source: “Strategie Österreich und CEE 4. Quartal 2013“, Raiffeisen Research, September 2013 5) Source: “Europe and Central Asia Economic Outlook“, World Bank, April 2013 6) Source: “World Economic Outlook“, International Monetary Fund, April 2013

68 EVN Full Report 2012/13 100 110 120 130 140 150 Peak load Peak load CO Coal –API#2 Natural gas–GIMP 5) 4) 3) 2) alculated basedontheheatingdegree total;inAustriathebasis(100%)corresponds tothelong-termaverage valuefrom 1996to2010,inBulgariaitcorresponds tothelong-term 1) Base load Electricity –EPEXspotmarket Base load Electricity –EEXforward market Crude oil–Brent Primary energyandCO Macedonia Bulgaria Austria Temperature-related energydemand ber 2013. prices forhouseholdsandsmallbusinesscustomersasof1 Octo- of anaveragereduction of3.6%inelectricityandnaturalgas vices. Thestartofthiscampaignalsoincludedtheannouncement for thepurchase ofenergy-efficient equipmentand energyser energy efficiency campaignthatincludes,amongothers,support regional energysalescompanies,announcedthestartofan 30 40 50 60 70 80 90

EPEX spot–Eur A ARA notation(Amster Net ConnectGermany(NCG)–EEX(Eur average valuefrom 2004to2011andinMacedoniaitcorresponds tothelong-termaverage valuebeginningin2001;changesreported inpercentage points. C 2 In August2013,ENERGIEALLIANZAustriaGmbH,withits emission certificates (2 emissioncertificates in % Development ofprimaryenergyprices(indexed) verage pricesfortherespective EEXquarterlyforward marketprices,beginningoneyearbefore therespective reporting period Oct. 2011

3) opean Power Exchange 2) dam, Rotterdam, Antwerp) 2 012 2

emissioncertificates nd /3 rd period) 5)

4) opean Energy Exchange)stockexchangepricefornatural gas 1) Management report EUR/MWh EUR/MWh EUR/MWh EUR/MWh EUR/MWh - EUR/bbl EUR/t EUR/t (reduction of9.8%). 2013followingadrop inthenaturalgasprice as of1 January The endcustomerpricesforheatwere alsolowered by5.9% hold customers by an average of 4.2% as of 1 August 2013. network operators,byreducing theelectricitypriceforhouse- losses recognised bytheregulatory authoritiesfor distribution 5 March 2013,whichwasbasedonacutbackinthepowergrid reduction of7.3%intheendcustomerpricesforelectricityas % The regulatory authoritiesinBulgariafollowedaninitial 2012/13 20 — General businessandEnergysectorenvironment 13 107.5

58.8 47.5 63.1 26.9 82.9 49.9 38.8 51120.4 108.2 95.1 88.0 5.3 2011/12 67.0 54.8 76.3 24.3 86.0 55.1 44.8 99.0 7.9 EVN Full Report2012/13 Change in % Sep.2 –33.0 –12.3 –13.3 –17.2 –13.5 2. 100.8 –25.3 –20.2 10.9 –3.5 –9.5 . 101.7 8.5 013 ol pr tonne) (per Coal Crude oil(perbbl) CO MWh) (per gas Natural 2 (pertonne) 2010/11 14.8 64.1 50.3 87.0 22.1 75.5 61.8 51.6 86.2 69

Management report Development of electricity prices – spot and forward market in %

250 225 200 175 150 125 Spot peak load 100 Spot base load 75 Forward peak load 50 Forward base load 25 0 Oct.1 201 2012 2013 Sep. 2013

In Macedonia, the regulatory authorities reduced the end cus- prices. Energy raw materials and electricity are purchased and/or tomer price for electricity by 3.0% as of 1 July 2013 and raised hedged on forward markets to establish and maintain planning the purchase price at the same time. and procurement security over the medium term. Long-standing business relationships with reliable suppliers and medium- and long-term supply agreements form the basis for primary energy purchases. The procurement of electricity and natural gas Success and influencing factors is based on an active hedging policy within the framework of EnergieAllianz Austria (EAA). In the electricity business, EVN‘s The stability and efficiency of EVN’s energy transmission net- integrated business model and own generation facilities create works form the basis for ensuring supply security. The continuous a natural hedge. The heating business involves the indexing of improvement of these networks therefore represents one of the selling prices, whereby nearly all contracts are linked to official focal points of EVN’s strategic investments. Activities in the mar- price indices. kets of South Eastern Europe are not only concentrated on network improvement, but also on the reduction of network losses. In its home market of Lower Austria, the strong anchoring of The development of earnings in the network area is influenced, the EVN brand forms the core of the integrated business model. above all, by the tariff system and the regulatory environment. This brand supports the successful positioning of EVN as a competent service and supply company for electricity, natural gas, Another important factor for the protection of supply secu- heat and water. Cable television and telecommunication services rity is EVN’s own energy generation capacity. EVN can rely on a are also offered under the kabelplus brand. These activities give diverse and adaptable generation mix that ranges from flexible EVN a widely diversified and stable end customer basis. thermal capacity to renewable energy, especially from hydropower and windpower. Consequently, the electricity business is The international project business in the Environmental Ser- characterised by many different influencing factors. The genera- vices Segment has substantial opportunities to develop new pro- tion of electricity from thermal sources is influenced by primary jects in the areas of municipal wastewater treatment, drinking energy prices, while the sale of electricity is influenced mainly water purification and thermal waste utilisation in Central, South by the development of electricity prices on the European mar- Eastern and Eastern Europe. The actual realisation of these pro- kets. Earnings from the generation and sale of renewable energy jects is generally dependent on the financing capabilities of the are also dependent on legal regulations (e.g. feed-in tariffs) and public sector as the customer. EVN serves as the general contrac- external factors such as water flow and wind conditions. In order tor for these projects and is therefore responsible for planning to optimise its own generation capacity, EVN continuously mon- and turnkey construction as well as subsequent operation where itors the development of electricity prices. desired. Another framework for the realisation of environmental projects is the so-called PPP model (Public Private Partnership), EVN uses appropriate hedging and procurement strategies to under which EVN arranges the financing through a separate manage the development of primary energy costs and wholesale company without taking on any economic risks for the project.

70 EVN Full Report 2012/13 Network losses CO Stakeholder dialogue Occupational accidents Employee fluctuation Influencing factors ed totheprevious year 1) Heat sales Natural gassales Electricity sales Electricity prices–spotmarket Electricity prices–forward market Primary energy prices Temperature Influencing factors

gas explorationandstorage. and forthe50.03%stakeinRAGareas ofoilandnatural the 13InnRiverpowerplantsthatsupportelectricitygeneration all, forthe12.63%stakeinVerbund AGandthe13%stakein a furthercontributiontovertical integration. Thisistrue,above investments, whichare reported underfinancialresults andmake andrisk. earnings ness makesanimportantcontributiontothediversification of the viewpoint of the EVN Group, the environmental services busi- and allocation during the project implementation phase. From subcontractors and suppliers as well as adequate risk mitigation planning andrealisation thatisalsoreflected intheselectionof of expertise,strong competenceintechnologicalandeconomic include the acquisition of new projects within EVN’s core areas The keysuccessfactorsfortheenvironmental servicesbusiness

Compar

2 effects on the financial result. effects onthefinancial See note See EVN‘s integratedbusinessmodelisrounded off bystrategic emissions 31. Financialr esult onpage131fordetailsthe

Management report Effect onbusiness Effect onbusiness development development (in general) Negative Negative Negative Negative Negative Negative Negative Negative Positive Positive Positive Neutral 1) — Energy sectorenvironment, Successandinfluencingfactors EVN Full Report2012/13 71

Management report Business development Highlights 2012/13 These consolidated financial statements were prepared in accordance with International Financial Reporting Standards Revenue declines 3.2% to EUR 2,755.0m (IFRS), as adopted by the EU. The scope of consolidation (see EBITDA down 3.6% to EUR 457.6m note 4. Scope of consolidation, page 111f) was increased on EBIT falls 2.1% to EUR 218.5m balance by one fully consolidated company and reduced by Financial results at EUR –38.1m due to negative income one investment in an equity accounted investee during the from investments reporting year. In addition to EVN AG as the parent company, Profit for the period 41.2% lower at EUR 114.7m the consolidated financial statements for the 2012/13 finan- Net cash flow from operating activities rises 21.8% to cial year include 63 fully consolidated companies (previous EUR 561.7m year: 62), five proportionally consolidated companies (previous Equity ratio nearly constant at 43.2% year: five) and 18 investments in equity accounted investees (previous year: 19).

WTE Projektgesellschaft Trinkwasseranlage d.o.o. and OOO decreasing electricity prices had a negative effect in Austria. This EVN Umwelt were added to the scope of fully consolidated com- was contrasted by higher revenue in Macedonia following price panies in 2012/13. EVN Finance Service B.V. was deconsolidated increases in the prior year. Revenue in the environmental busi- following a merger with EVN Projektmanagement GmbH. Devoll ness was substantially lower year-on-year due to a drop in project Hydropower ShA, which was previously included at equity, was volumes. deconsolidated due to the sale of the investment in the Devoll hydropower plant project. The revenue generated outside Austria fell by EUR 45.7m, or 3.8%, to EUR 1,152.1m. This represents a decline in the Statement of operations share of Group revenue from 42.1% in the previous year to Results of operations 41.8%. The EVN Group generated revenue of EUR 2,755.0m in 2012/13, which represents a decline of EUR 91.5m, or 3.2%, Other operating income rose by EUR 14.1m, or 17.4%, to compared with the previous year. In the energy business, EUR 95.5m, above all due to an increase in work in process.

2012/13 2011/12 Change 2010/11 Condensed consolidated statement of operations EURm EURm EURm % EURm Revenue 2,755.0 2,846.5 –91.5 –3.2 2,729.2 Other operating income 95.5 81.3 14.1 17.4 101.6 Electricity purchases and primary energy expenses –1,612.6 –1,630.6 18.0 1.1 –1,505.7 Cost of materials and services –295.8 –350.0 54.1 15.5 –373.9 Personnel expenses1) –307.1 –312.6 5.6 1.8 –319.8 Other operating expenses –177.4 –160.1 –17.3 –10.8 –156.3 EBITDA1) 457.6 474.5 –16.9 –3.6 474.9 Depreciation and amortisation –239.1 –251.3 12.2 4.9 –252.8 Results from operating activities (EBIT)1) 218.5 223.2 –4.7 –2.1 222.2 Financial results1) –38.1 36.5 –74.6 – 41.8 Profit before income tax 180.3 259.7 –79.3 –30.6 263.9 Income tax expense –22.1 –25.9 3.8 14.6 –28.8 Profit for the period 158.2 233.8 –75.6 –32.3 235.2 thereof profit attributable to EVN AG shareholders (Group net profit)1) 114.7 194.9 –80.2 –41.2 192.3 thereof profit attributable to non-controlling interests 43.5 38.9 4.7 12.0 42.9 Earnings per share in EUR2) 0.64 1.09 –0.4 –40.8 1.08

1) The figure for the prior year was adjusted (see consolidated notes, note 2. Reporting in accordance with IFRS on page 108) 2) Diluted equals undiluted

72 EVN Full Report 2012/13 2012/13. Thisreduction of 97persons,or1.3%,resulted from projects intheenvironmental servicesbusiness. chiefly from ayear-on-year declineinthevolumeofimplemented EUR 54.1m,or15.5%,to295.8m.Thisreduction resulted contracts related tothemarketingofEVN’s ownproduction. due tothecolderweatherinAustriaandaprovision foronerous procurement costsforcoal,anincrease ingaspurchase volumes for renewable electricity in Austria. It was contrasted by higher Europeern dueto the milderwinterandendoffixedtariffs decrease inthevolumesofelectricitypurchased in SouthEast- 1,612.6m. This development resulted primarily from a EUR primary 1) The EVNGroup hadan averageof7,497employeesin Third-party servicesandothermaterialsfellby The costofelectricitypurchases from third partiesand 2010/11 2,729.2 in EURm in Revenue byregion in EURm Changes inEBIT2012/13 compared toprevious year

implemented methodofcountryorigin. T he figures fortheprioryearshavebeenadjustedduetohe figures EBIT 2011/12 energy expenses were EUR18.0m,or1.1%,lowerat 1,650.1 248.2 830.9 223.2 2011/12 2,846.5 energy business Contribution margin by 1,648.7 1) 966.0 231.8 34.8 2012 2,755.0 /13 operating 1,006.7 1,602.9 income Other 145.4 14.1 Others Austria South EasternEurope Central and Cost ofmaterials Other revenue, and services –54.2 Personnel expenses ance withIFRS,page108). toEUR312.6m(seenote2.Reportinginaccord - EUR 329.1m sequently, personnelexpensesfor2011/12were reduced from cial results, thecomparableprioryeardatawasadjusted.Con- employee-related provisions from personnelexpensestofinan- which ledtothereclassification oftheinterest componentofthe ing agreements. the wage and salary adjustments required by collectivebargain- in Macedonia.Incontrast,personnelexpenseswere increased by from thesaleoffirstfacilityGmbHandlowerrestructuring costs EUR 5.6m,or1.8%,compared totheprevious year. Thiscomes expenses totalledEUR307.1m,whichrepresents a decrease of the average number of employees for 2011/12. Personnel as wellthesaleoffirstfacilityGmbH,whichwasincludedin the implementationoffurtherefficiency improvement measures 5.6 he figures fortheprioryearshavebeenadjusteddue tohe figures 1) In connection with the change in the accounting policy,

2010/11 in EURm in EBITDA byregion 474.9

implemented methodofcountryorigin. T 368.8 90.6 15.6 Depreciation and amortisation 12.2 Management report —development Business 2011/12 474.5 1) 336.0 114.6 24.0 operating expenses Other –17.3 2012 EVN Full Report2012/13 457.6 /13 128.4 338.5 –9.2 EBIT 2012/13 EBIT 218.5 Others Austria South EasternEurope Central and 73

Management report Other operating expenses rose by EUR 17.3m to EUR 177.4m Earnings and dividend per share as a result of changes in provisions. EBITDA amounted to in EUR EUR 457.6m, for a year-on-year decline of EUR 16.9m or 3.6%. 1. 0 8 1. 0 9 In spite of the slight decrease in revenue, the EBITDA margin 65.3% 38.7% equalled 16.6% and nearly matched the 16.7% recorded in 38.0% 0.64 2011/12. Depreciation and amortisation fell by EUR 12.2m, or 0.41 0.42 0.421) 4.9%, below that of the previous year to EUR 239.1m. Scheduled depreciation and amortisation rose by EUR 10.1m, but impair- 2010/11 2011/12 2012/13 ment losses were EUR 22.3m lower in 2012/13. The impairment losses recognised during the previous year were related, above Earnings per share all, to the biomass pilot plant at the Dürnrohr power station and Dividend per share Payout ratio the Kavarna wind park in Bulgaria. Results from operating activ- 1) Proposal to the Annual General Meeting ities (EBIT) declined 2.1% year-on-year to EUR 218.5m. The EBIT margin remained nearly unchanged at 7.9% (2011/12: 7.8%) despite the drop in revenue. The income tax expense totalled EUR 22.1m and was lower than in the previous year due to the decline in earnings, whereby Financial results fell by EUR 74.6m to EUR –38.1m. This the decrease in financial results had only a partial effect on taxes. decline is attributable chiefly to income from investments, i.e. Profit for the period amounted to EUR 158.2m. The share of to the income from investments in equity accounted investees. profit attributable to non-controlling interests rose by EUR 4.7m, EconGas made a negative contribution of EUR 19.7m to earnings in particular due to the higher earnings generated by RAG, for the reporting year due to the high negative spread between Burgenland Holding AG and EVN Macedonia. gas purchases, which are linked to the oil price, and hub-price linked sales as well as the recognition of a provision for impend- Group net profit fell by EUR 80.2m, or 41.2%, to EUR 114.7m. ing losses on contractually agreed, long-term transport and LNG Earnings per share declined to EUR 0.64 (previous year: EUR 1.09). capacity bookings. In addition, the sale of the stake owned by The one-off effects recognised in 2012/13 were related primar- EVN AG in the Albanian Devoll hydropower plant project to ily to financial results and represent non-cash items. The Execu- Statkraft A.S. during May 2013 led to a non-recurring negative tive Board will therefore recommend the distribution of a stable pre-tax effect of EUR 27.6m. The negative earnings contribu- dividend of EUR 0.42 per share for the 2012/13 financial year tion of EUR 29.6m from WEEV Beteiligungs GmbH, which was to the 85th Annual General Meeting (previous year: EUR 0.42). founded to participate in the 2011 capital increase by Verbund, This corresponds to a dividend payout ratio of 65.3% (previous resulted from a valuation-related impairment loss to the Verbund year: 38.7%) and a dividend yield of 3.7% (previous year: 3.9%) shares held by this company to reflect a significant and lasting based on the price of the EVN AG share as of 30 September 2013 decline in the price of these shares below their cost. Financial (EUR 11.29). results were also influenced by a negative earnings contribution of EUR 20.4m from Shkodra Region Beteiligungsholding GmbH Statement of financial position in connection with the Ashta hydropower plant in Albania. This Asset and financial position resulted from a change in the government and a subsequent EVN’s balance sheet total rose by EUR 238.9m, or 3.5%, over increase in uncertainty over the extension of the concession as the level at the end of the 2011/12 financial year to EUR 7,102.1m economic compensation for flood damage incurred during the as of 30 September 2013. construction stage as well as construction delays and the related higher costs. Customer risk has also increased due to the delayed Non-current assets totalled EUR 6,125.1m and represent receipt of payments, and the estimated income from the sale of 86.2% (previous year: 88.2%) of total assets as well as an certified emission reductions (CERs) continues to decline. Posi- increase of EUR 71.2m, or 1.2%, over the previous year. Intan- tive factors for the development of financial results included an gible assets and property, plant and equipment increased by increased earnings contribution of EUR 80.1m from RAG and a dividend of EUR 24.1m from the investment in Verbund. The interest result improved EUR 1.8m to EUR –71.7m, above all due to a decline in interest expense.

74 EVN Full Report 2012/13 Other non-current assets Other current liabilities Deferred taxliabilities andnon-current provisions Investments inequityaccountedinvesteesandotherinvestments Deferred income from network subsidies andothernon-currentDeferred liabilities incomefrom networksubsidies Non-controlling interests Current loansandborrowings Non-current loans andborrowings Issued capitalandreserves attributabletoshareholders ofEVNAG Intangible assetsandproperty, plantandequipment he figure fortheprioryearwasadjusted(seeconsolidated notes,note2.Reportinginaccordancehe figure withIFRSonpage108) 1) Total equityandliabilities Current liabilities Non-current liabilities Equity Equity andliabilities Total assets Current assets Non-current assets Assets Condensed consolidatedstatementoffinancialposition with Austrianlaw. the EUR4.1mregulatory accountthatwascreated inaccordance non-current assetstoEUR 861.1m.Thispositionalsoincludes issued bondsledtoadeclineofEUR37.3m,or4.1%,inother ponent andadeclineinthemarketvalueofinterest hedgesfor and cashequivalents.Thereduction ofthefund’s securitycom- held tocovertheprovisions forpensionswere reclassified tocash asof30September2013.Securitiesinthefund to EUR 694.8m led toanincrease ofEUR 26.1m, or3.9%,inotherinvestments The valuationoftheVerbund shares helddirectly byEVNAG ments andprofit distributions basedoncapitalcontributions. from despitea decline inearnings theseinvest- EUR 1,047.9m of equityaccountedinvesteesnearlymatchedtheprioryearat EUR 79.6m,or2.3%,to3,491.9m.Thecarryingamount

1) 1) 1) 1) ties inthefundtocoverprovisions forpensions. and theabove-mentionedreclassification ofnon-current securi- This increase was also supported, above all, by positive cash flow 5.2%, toEUR565.5minthispositionasof30September2013. receivables. Theresult wasanetincrease ofEUR27.9m,or electricity inBulgariawaspartiallyoffset byadeclineintrade compensation fortheadditionalcostsassociatedwithrenewable The increase incurrent receivables resulting from theclaimto and theirshare oftotalassets increased from 11.8%to13.8%. 30.09.2013 ,2. ,5. 12126,083.0 1.2 71.2 6,053.9 6,125.1 ,0. 8. 1. 33982.4 53.3 419.7 786.9 1,206.7 ,2. ,6. 237–. 2,722.2 –7.6 3,165.8 –233.7 1.8 3,062.6 2,829.0 52.8 3,013.7 3,066.5 ,0. ,6. 3. . 6,870.4 3.5 238.9 6,863.2 7,102.1 ,0. ,6. 3. . 6,870.4 3.5 238.9 6,863.2 7,102.1 Current assetsrose byEUR167.7m,or20.7%,to 977.0m ,4. ,1. 53151,884.5 1.5 25.3 1,717.4 1,742.7 ,7. ,3. 318–871,591.3 –18.7 –361.8 1,933.3 1,571.4 3,349.4 2.3 79.6 3,412.3 3,491.9 ,2. ,6. 65202,804.1 2.0 56.5 2,768.3 2,824.8 EURm 7. 0. 6. 07787.4 20.7 167.7 809.3 977.0 9. 2. 3. 37849.1 –3.7 –33.8 924.3 890.5 1. 3. 881. 670.8 10.7 78.8 737.5 816.4 5. 1. 5669506.8 6.9 361.7 35.6 –1.5 519.4 –3.7 555.0 245.4 241.7 9. 94340.9 49.4 390.3 0. 0. 261. 624.0 15.2 92.6 609.9 702.5 30.09.2012 Management report EURm

ER % EURm EVN Full Report2012/13 hne30.09.2011 Change — Businessdevelopment 311.6 – EURm 75

Management report Value analysis 2012/13 2011/12 Change in % 2010/11 ROE % 5.2 7.6 –2.4 7.6 Average equity EURm 3,040.1 3,089.7 –1.6 3,095.5 WACC after income tax 1) % 6.5 6.5 – 6.5 Operating ROCE (OpROCE) 2) % 5.4 6.9 –1.4 7.5 Average capital employed2) EURm 4,748.5 4,647.0 2.2 4,395.4 Net operating profit after tax (NOPAT)2) EURm 258.5 318.8 –18.9 331.4 EVA® EURm –50.1 16.7 – 45.7

1) The weighted cost of capital is calculated on the basis of a cost of equity capital amounting to 9.0% and a cost of interest-bearing debt (after tax) of 3.7%, as well as an equity ratio of 50.0%. 2) Adjusted for impairments and one-off effects; the market value of the shareholding in Verbund AG is not included in the capital employed in order to consistently convey the development of the value contribution.

Balance sheet structure market value of swaps concluded to hedge the foreign exchange in % risk associated with bonds. Contrary effects included the issue of a EUR 121.5m promissory note loan in October 2012, an increase

Current assets 11. 8 11. 5 13.8 17.0 Current in provisions and an increase in construction and investment liabilities subsidies. Non-current 88.2 44.6 86.2 assets 39.8 Non-current liabilities The above-mentioned reclassification of financing due in 2013/14 led to a corresponding increase of EUR 340.9m in current liabilities to EUR 390.3m. Trade payables rose by EUR 77.5m, or 20.2%, above all due to the repayment of network access fees

43.9 43.2 Equity following a supreme court decision in Bulgaria.

Value analysis The weighted average cost of capital (WACC) after tax, taking into consideration EVN’s specific company and country risks, remained unchanged at 6.5%. 30.09.2012 30.09.2013 The return on equity (ROE) declined year-on-year to 5.2% Equity rose by EUR 52.8m, or 1.8%, to EUR 3,066.5m as of as a result of the decrease in profit after tax. The operational 30 September 2013, and the equity ratio therefore remained indicators changed as follows during the reporting year: eco- nearly constant at 43.2% (previous year: 43.9%). The dividend nomic value added (EVA®) fell from EUR 16.7m in the previous distributed to the shareholders of EVN AG and non-controlling year and turned negative to EUR –50.1m and the operating interests amounted to EUR 111.7m in 2012/13. This distribution return on capital employed (OpROCE) fell from 6.9% to 5.4%. was offset by earnings generated during the reporting year and by results recorded directly in equity without recognition through Liquidity position profit or loss, e.g. the change in the market value of the Verbund EVN AG issued its first promissory note loan during the report- shares held by EVN AG. ing year, and thereby successfully used an alternative source of financing on the debt capital markets. The transaction, which Non-current liabilities fell by EUR 233.7m, or 7.6%, to was carried out in October 2012, was substantially oversub- EUR 2,829.0m. This decline resulted chiefly from the scheduled scribed and the EUR 121.5m volume was placed in full with repayment of loans as well as the reclassification of financing German investors. In addition to expanding the investor base, due in 2013/14, in particular a JPY bond and a CHF bond, from this instrument optimised the maturity structure of EVN’s liabili- non-current to current financial liabilities and a change in the ties. The promissory note loan is divided into six different tranches

76 EVN Full Report 2012/13 Loans receivable Non-current securities Current securities Current loansandborrowings Cash andcashequivalents liquidity positioncanberegarded asstable. whichhasaremaining termoffouryears.EVN’sEUR 500.0m, ity reserve isprovided byasyndicatedrevolving credit facilityof have remaining termsoftwo tosixyears.Anadditionalliquid- 2014. In total the credit line are arranged with seven banks and ing of the credit facilities that were scheduled to expire in July improved inAugustandSeptember 2013bytheearlyrefinanc- needs. Thematuritystructure ofthesecredit lineswasfurther ble astemporaryfinancingtocoverpossibleshort-termliquidity eral credit commitments totalling EUR 175.0m that are availa- EUR 141.4m, or8.3%,innetdebttoEUR1,562.3m. and fixedinterest rates.Positivecashflowledtoareduction of with termsrangingfrom sevento18yearsaswellvariable 2) 1) Gearing (%) Equity Net debt Non-current loansandborrowings Net debt

T Excl. bankover itional informationonthecomposition and terms 080 091 001 2011/12 2010/11 2009/10 2008/09 beginning onpage144. liabilitiesisprovidedof non-current inthenotes financial Add Net debt In order tosafeguard itsfinancialflexibility,EVNAGhasbilat- he figure fortheprioryearwasadjusted(seeconsolidatednotes,note2.Reportinginaccordancehe figure withIFRSonpage108) 2) 44.1% 1,378.2 2) drafts containedincashandequivalents in EURm , Gearing Gearing 48.2% 1,458.2 1) in % 1,579.2 49.9% 1 56.5% ,703.7 2012/13 1,562.3 Gearing 50.9%

the prioryeareffect from thepurchase ofadditionalstakesin from financingactivitiesis mainlyattributabletotheabsenceof tures fortheshare buyback.Theimprovement incashflow ers ofEVNAGandnon-controlling interests aswellexpendi- uled loanrepayments, the dividendpaymenttothesharehold- issued duringthereporting year, whichwascontrastedbysched- 14.3%, toEUR–90.5m.A121.5mpromissory noteloanwas investment purposes. resulted mainlyfrom thepurchase ofshort-termsecuritiesfor –380.5m.Thisrepresents adecrease of14.0%,which EUR EUR 100.7m, or21.8%,toEUR561.7m. tember 2013,cashflowfrom operatingactivitiesincreased Sep- lower year-on-year increase in working capital asof30 to themarketingofEVN’s ownproduction. Combinedwitha increase innon-current provisions foronerous contractsrelated the share ofprofit from equityaccountedinvesteesandfrom an ment wassupported,aboveall,bynon-casheffects related to Thisdevelop- during 2012/13,inspiteofthedeclineearnings. year: EUR134.1m). increase incashandequivalentstoEUR224.8m(previous 90.7m(previous year:EUR 21.5m),whichsupportedan EUR EVN BulgariaECandEP 30.09.2013 Cash flowfrom financing activitiesrose byEUR15.1m,or Cash flowfrom investingactivitiesfellbyEUR46.6mto Gross cash flow rose byEUR 73.3m, or 15.3%,toEUR 553.6m Statement ofcashflows The abovedevelopmentsresulted inpositivecashflowof ,6. ,1. 28183,165.8 1,579.2 1.8 –8.3 52.8 –141.4 3,013.7 1,703.7 3,066.5 1,562.3 ,7. ,3. 318–871,591.3 –18.7 –361.8 1,933.3 1,571.4 248–3. 9. 6. –112.6 –67.6 –90.7 –134.1 –224.8 EURm 5. 14334.5 21.4 355.9 3. 3. 28–. –24.4 –7.6 –2.8 –36.4 –39.2 5. 7. 982. –97.9 25.7 19.8 –77.0 –57.1 4. 34–40.5 –3.4 –43.9 0956.5 50.9 30.09.2012 Management report EURm

Um EURm EVN Full Report2012/13 hne30.09.2011 Change 5649.9 –5.6 – . — Businessdevelopment

% –57.9 – 280.8 – EURm 77

Management report 2012/13 2011/12 Change 2010/11 Condensed consolidated statement of cash flows EURm EURm EURm % EURm Profit before income tax 180.3 259.7 –79.3 –30.6 263.9 Non-cash items 373.3 220.6 152.7 69.2 214.1 Gross cash flow 553.6 480.3 73.3 15.3 478.1 Changes in current and non-current balance sheet items 36.4 9.7 26.9 – 78.3 Income tax paid –28.3 –28.9 0.6 2.2 –34.3 Net cash flow from operating activities 561.7 461.0 100.7 21.8 522.0 Changes in intangible assets and property, plant and equipment incl. deferred income from network subsidies –245.0 –232.6 –12.4 –5.3 –318.2 Acquisition of subsidiaries, net of cash acquired – 0.6 0.6 – –24.6 Changes in financial assets and other non-current assets –95.3 –155.6 60.3 38.8 –333.3 Changes in current securities –40.3 53.8 –94.1 – 164.5 Net cash flow from investing activities –380.5 –333.9 –46.6 –14.0 –511.6 Net cash flow from financing activities –90.5 –105.6 15.1 14.3 13.1 Net change in cash and cash equivalents 90.7 21.5 69.2 – 23.5 Cash and cash equivalents at the beginning of the period 134.1 112.6 21.5 19.1 89.1 Currency translation differences 0.0*) 0.0*) – – 0.0*) Cash and cash equivalents at the end of the period 224.8 134.1 90.7 67.6 112.6

*) Small amount

Investments the further development of natural gas supplies in Croatia. The Following a 20.0% reduction in investments in intangible decline resulted, above all, from the higher prior year level that assets and property, plant and equipment during the pr evious reflected the construction of the co-generation plant in Plovdiv. year, there was also a major focus on investments in 2012/13. Capital expenditure rose by EUR 20.0m, or 6.5%, to EUR 328.4m, The year-on-year decline in investments in the Environmental but is substantially lower than the average amount spent in Services Segment is explained primarily by the comparative recent years. prior year data, which include the costs for the construction of a co-generation plant in Lyuberzy, a suburb of Moscow. This EVN’s concentration on supply security is also reflected in its project was completed during the first quarter of 2012/13. investments. More than one-half of the investments in 2012/13 were directed to the Network Infrastructure Austria Segment, in The following chart provides an overview of the most impor- particular the construction of the Westschiene natural gas trans- tant investments: port pipeline.

Investments in the Generation Segment focused on the expansion of windpower capacity in Lower Austria and were reflected in an increase in capital expenditure in this business.

In the Energy Trade and Supply Segment, the volume of investments reflected the previous year due to the further expansion of the district heating network and the construction of biomass heating plants.

Investment activity declined slightly in the Energy Supply South East Europe Segment. The focus remained on the improvement of supply security and quality, the expansion of network and electricity metering technology in Bulgaria and Macedonia and

78 EVN Full Report 2012/13 thereof renewable energy SouthEasternEurope thereof cableTV andtelecommunicationsnetworks thereof supra-regional powerlines,localnetworks and wastewater thereof renewable energy Lower Austria thereof natural gasnetworks thereof combined cycleheatandpowerplantsinMoscow heatingplants thereof district thereof thermalpowerstations thereof electricitynetworks 1) Total Strategic InvestmentsandOtherBusiness Environmental Services Energy SupplySouthEastEurope Network Infrastructure Austria Energy Trade andSupply Generation Investment prioritiesatEVN

After consolidation 001 201 2010/11

in %,Total inEURm Structure ofinvestments 415.7 38.7 16.0 16.0 11.6 27.1 0.5 6.1

308.3 1/12 29.3 47.0 9.8 1.5 5.1 7.4 2012/13 328.4 1) 53.7 25.1 9.2 3.6 7.3 1.1 Generation Network Infrastructure Austria Energy Trade andSupply Energy SupplySouthEastEurope Environmental Services Strategic InvestmentsandOtherBusiness 2012/13 EURm 7. 4. 162. 160.9 21.8 31.6 144.8 176.4 2. 0. 0065415.7 6.5 20.0 308.3 328.4 192. 1. 4. 48.3 112.5 –47.6 –8.7 –10.8 –7.8 22.7 90.3 11.9 82.4 30.1 30.1 15.7 24.0 516. 02–. 70.0 –0.3 –0.2 65.3 65.1 281. 099. 51.6 92.4 28.7 10.9 29.1 11.8 22.8 956. 024. 75.1 43.7 30.2 69.2 99.5 3.5 0.4 9.9 5.3 0.1 . 25–. 5. 33.0 –58.6 –7.3 12.5 5.2 2011/12 Management report EURm . 12–25.6 –1.2 4.7 . 08–69.5 –0.8 1.2 9.0 . 37–41.2 –3.7 9.0 . 24–95.5 –2.4 2.5

Um % EURm EVN Full Report2012/13 . 2866.4 52.8 8.3 . 0412.8 10.4 0.9 . . 24.3 1.6 0.4 hne2010/11 Change – — Businessdevelopment 25.3 – EURm 2.2 6.5 9.1 8.4 79

Management report Non-financial indicators Research and development EVN is involved in numerous innovation, development and Employees research projects for an efficient, intelligent and environmen- The EVN Group had an average of 7,497 employees during tally friendly energy future. The projects in this portfolio reflect the 2012/13 financial year. The share of women equalled 21.9% current and future demands on the core energy and environ- during this period. The Frauen@EVN programme was launched in mental services businesses across all levels of the value chain. 2010/11 and has continued since that time. It is designed, above The goals of the Group‘s innovation, development and research all, to improve the conditions that traditionally have a greater activities are derived from the corporate strategy and measured negative effect on women than on men. The goals are to reduce by the benefits they provide for the protection of the environ- the “unequal opportunities” between women and men and to ment and resources, supply security and, last but not least, for increase the share of women at EVN. EVN’s competitiveness. EVN organises its research activities by combining expertise from various areas. Research projects EVN is well aware of the high strategic importance of its involve – wherever feasible – cooperation between different qualified workforce. Consequently, the protection and expan- areas of the corporation and numerous partners from science sion of this high level of expertise represent a focal point for and industry. The exchange of experience in national and inter- human resources management. The training and professional national projects not only adds to the success of EVN’s projects, development offering for employees in Austria, Bulgaria and but also supports universities and public research institutions Macedonia is coordinated by the EVN Academy. Training and with up-to-date research topics and makes an important con- educational expenses totalled EUR 2.4m in 2012/13 (previous tribution to the qualified and practically oriented education year: EUR 2.7m), or EUR 325.5 per employee (previous year: of students. Since EVN concentrates on applied research and EUR 359.0). The average time dedicated to training rose from development, its know-how is complemented by the expertise 26.9 hours per employee in the previous year to 31.3 hours for of its scientific cooperation partners with their focus on basic the reporting year. research.

Environment and sustainability In 2012/13, EVN spent EUR 1.6m (thereof approximately As a responsible energy and environmental services provider, 28.1% financed through public subsidies) on innovation, EVN considers the dimensions “People”, “Environment” and development and research projects. These projects concen- “Economy” as three interrelated parts of a whole and works trated on the areas of innovative energy storage (multi-func- to achieve a balance between the requirements of the differ- tional energy storage facilities, power-to-gas) and decentralised ent interest groups. The sustainability aspects and the related generation (photovoltaics, small-scale windpower). In addition, objectives represent an integral part of the corporate strategy. the “e-pendl er” e-mobility model region was started under A flexible energy mix is of decisive importance to EVN’s future EVN’s direction in 2012/13. This project will test the feasibility viability. One core element of the Group’s strategic orientation is of e-mobility, in particular for the first and last miles of com- the further development of energy generation from renewable muter routes and also evaluate the effects on the electricity energy sources, in particular windpower and hydropower as well grid. In the area of conventional generation, projects centred as biomass and photovoltaics. The objective is to raise the share on the continuous optimisation of existing power plants to of renewable energies in the electricity generation mix to 50%. reduce CO2 emissions. Biotechnological methods will be used

In the home market of Lower Austria, activities are directed, to convert the so-called pure CO2 resulting from the generation above all, to expanding windpower capacity as a means of meet- process into biologically degradable plastic (Project CO2USE). ing this goal. In addition to ecological responsibility, EVN also The Environmental Services Segment is working on the treat- carries an economic responsibility that is reflected in a long-term ment of arsenic-contaminated ground water to produce goal to generate 30% of its electricity sales volumes from its own drinking water and the development of a small sewage sludge production or procurement rights. incineration plant.

80 EVN Full Report 2012/13 – This committee includes the heads of internal audit,thegeneral This committeeincludestheheads ofinternal and definesthe type and the scope of official risk reporting. ment cycle.Itapproves changesinriskmeasurement methods for monitoring the correct implementation of the risk manage- tation ofmeasures tominimiserisk. also reviews theriskmanagementprocesses andtheimplemen- secr – of theEVNGroup. responsible foranalysingandmeasuringtheoverallriskexposure the locallevel.Thecorporateriskmanagementdepartmentis The actionsare thenimplementedbythebusinessunitsat which helpstoidentify suitableactionstominimisetheserisks. ness unitscommunicatetheirriskexposures tothisdepartment, methods andtoolsforidentifying andassessingrisks.Thebusi- department provides decentralisedriskmanagerswith ment process, a centrally organised corporate risk management and futurecashflows.Aspartoftheriskmanage- earnings risk alsoincludestherelated opportunities. tions from corporategoals.Theevaluationandmanagementof – –

tion ofriskmanagementactivitieswhere necessary; new riskpositions; inventory (review ofriskinventory)andtheidentification of The RiskManagementWorking Committeeisresponsible Risk ManagementWorking Committee Responsibilities ofthe changed conditions. of identifying andassessing risksshouldbe modified toreflect as well regular reviews todeterminewhetherthemethods sational unitsthatmustgothr Process review: Reporting: Assessment andanalysis: Identification: The riskmanagementprocess includesthefollowingsteps: The primarygoalofriskmanagementistoprotect current Risk managementprocess The EVNGroup definesriskasthedangerofnegativedevia- Definition ofrisk Risk management Committee andtheGr uation of the risk exposure by the Risk Management Working and theExecutiveBoard oftheEVNGroup; discussion andeval and cashflowdistribution; from different points of view; and the modelling of earnings assessment oftheidentified risks;theaggregation ofrisks e tariat andcorporateaf Thedistributionofriskreports totheriskmanagers A surveyofrisksbasedonthelatestrisk Methodicalidentification oftheorgani oup RiskCommittee;theimplementa

fairs, andcontrolling.audit Internal The qualitativeandquantitative ough anexplicitriskassessment suit able Management report - -

prices. Poli are dependent primarily on electricity and primary energy toring compliancewithallapplicableregulations. addresses thisriskbyissuingsafetyguidelinesandstrictlymoni- dangers thatexposetheEVNGroup tomajorliabilityrisk.EVN gas. Keyprocesses inthisbusinessare associatedwith specific or districtheataswelltheprocurement andsale ofnatural as disruptionsintheproduction anddistributionofelectricity and customeroffers thatare inlinewiththemarket. futures transactions,thediversification ofthecustomer portfolio include thelonger-term marketingofpowerplantcapacity, flows. Riskisminimisedbytheuseofhedgingstrategiesthat can alsoleadtoweakerdemandforenergyandlowerwater influence ontheprofit marginsoftheEVNGroup. The weather from competitorsandthelossofcustomerscanhaveanegative reflect thecurrent marketenvironment aswellpricepressure energy, aprocurement strategythatissuboptimal or doesnot Rising and/ormore volatileprocurement pricesfor(primary) to adeclineinthedemandforelectricity,naturalgasandheat. tion oftheGroup. risk exposure and,inthisway, influences thestrategicorienta- to establishriskmanagementmeasures aimedatchangingEVN’s assign specified tasks.TheGroup RiskCommitteeisauthorised any need for action and may alsoconvene working groups and and theRiskManagementWorking Committee.Itdecideson of theExecutiveBoard, theheadsofstrategicbusinessunits to and discussed by the Group Risk Committee, which consists markets andtechnologies,EVNsolditsinvestmentintheDevoll energy. Eur to riskssuchas conflicts ofinterest, limited meansofcontrolling Partnerships (jointventures, syndicatedcontracts)cangive rise parties, aboveallwhenenergy issourced outsidethe Group. filment ornon-fulfilment ofcontractualrequirements bythird hydropower project inAlbaniaduring2012/13. The profitability andtheintrinsic valueofproduction plants The energybusinessisconnectedwithoperatingriskssuch Economic, politicalandtechnologicaldevelopmentscanlead Risks intheenergybusiness Risk profile The results oftheriskinventoryandreports are presented Group RiskCommitteeandControlling In connectionwithitsstrategicreorientation regarding EVN isexposedtoproject risksandtheriskofimproper ful- opean energy portfolio and, in turn, onthemarketpricesof opean energyportfolioand,inturn, tics hasamajorinfluenceonthedevelopmentof — Non-financial indicators,Riskmanagement EVN Full Report2012/13 81

Management report and managing risk or the withdrawal or loss of a partner. There is Regular liquidity analyses, long-term and centrally managed also a risk that required permits and licenses may not be issued or financial planning, successful borrowing, bond and promissory extended for reasons that fall within EVN’s scope of responsibility. note loan placements as well as the protection of required financial resources (i.e. through credit lines) allow EVN to prevent Risks in the environmental services business liquidity risk. The EVN Group is exposed to risks in the environmental services business arising from possible fluctuations in the demand, Financial risks also include a possible change in the rating of volume and/or cost as well as disruption to or interruption of EVN AG. In addition, the earnings of the EVN Group could be drinking water supplies, wastewater treatment systems and affected by the development of earnings and equity in its invest- thermal waste utilisation facilities. In this business, EVN is also ments. exposed to technological, political, contractual, counterparty, foreign exchange and project risks. These risks are reduced Overall risk profile primarily through the use of experienced employees, regular EVN’s risk profile is changing continuously as a result of the continuing education and professional training programmes, volatile environment and the corporate strategy with its main efficient project management and the use of hedging instru- focus on the consolidation and strengthening of the core business ments (including guarantees and insurance). over the coming years. Risks can arise from activities in the home market of Lower Austria, the environmental services business Political and legal risks and the existing business areas in South Eastern Europe as well Changes in the regulatory environment, political pressure on as selected growth projects. In spite of this volatile envir onment, major projects and changing requirements under energy and the annual risk inventory did not identify any risks that could environmental protection laws are the primary drivers for political endanger the continued existence of the EVN Group. This con- and legal risks. clusion is a result, among others, of the EVN Group’s diversified business portfolio. Moreover, the existing political and economic instability in a number of the markets in South and South Eastern Europe and the resulting changes in the legal framework continue to represent a major challenge for business operations. These risks are addressed through cooperation with local, regional, national and international government agencies and interest groups. Legal and political pressure is reduced by entering into and regularly evaluating strategic partnerships, whereby the attendant liability and recourse rights are managed on the basis of suitable corporate structures.

This business also involves legal and litigation risks, above all, in connection with pending or potential court and arbitration proceedings related to various power plant projects and investments, respectively.

Financial risks EVN counteracts interest rate, foreign exchange and market price risks based on a comprehensive treasury strategy and accompanying organisational and methodical guidelines, which also include daily risk analysis and the use of derivative hedging instruments.

The management of credit and default risk includes measures to set credit limits and regularly monitor the credit standing of its customers as well as a targeted strategy to diversify the Group’s business partners.

82 EVN Full Report 2012/13

volatile and/ordeviatefrom forecasts

required liquidity/funds attheexpectedconditions Failur respective foreign exchangesituation financing forGroup companies thatdoesnotreflect the currency amountsintheconsolidated financialstatements; lation riskinconnectionwiththeconversionofforeign T For Financial risks contracted services Cost overrunsonpr Supplier risk the agreed performance Complete orpartialfailur Counterparty risk conditions own production volumes,e.g.duetochangedwaterflow Declining demandforEVNpr V in thenetworktariffs establishedbyregulatory authority Network operations:non-inclusionofactualoperatingcosts targets Energy salesandpr Profit marginrisk Liquidity andfinancingrisk natural gas,CO EVN’ Pr Price risk Market andcompetitiverisks ransaction risk(foreign currency exchangeloss)andtrans- olume risk

ocurement andsellingpricesforprimaryenergy,electricity,

eign currency risks

(e.g. thr safeguar Long-term, centrallymanagedfinancial planning, Monitoring, limitsandhedginginstruments thir Partnerships, contractualcontr insurance anddiversi Contracts, cr authorities andinter Lobbying withnationalandinter guarantee tari r capacity, developmentofapr and businessar Hedging strategies:diversi to themarketenvir Fixed pricingagr eflects customerdemands(incl.variousfloatingand s majorrisksandrelated countermeasures e torepay liabilitiesonscheduleortoobtainthe d partyexpertopinions

ough credit lines) ding offinancingrequirements

2 emissioncertificates andbiomassthatare edit monitoringandcredit limitsystems, ffs) oduction: failure tomeetprofit margin eas, long-termsaleofpowerplant ojects; delaysinthecompletionof eements, procurement strategytailored onment, hedgingtransactions est groups fication ofbusinesspartners e byabusinesspartnertoprovide oducts orservices,decrease in

fication ofcustomersegments

oduct portfoliothat ols wherever possible, national regulatory

Changes inmarketrates,incr Inter Higher r Rating changes Failur Investment risks Failur Contract risks IT/security risks Blackout/nationwide networkdisruptions(e.g.dueto third party) Service disruptions/networkbreakdowns (ownand Incorr Infrastructur Late identi T Operating risks Inflation/deflation risk Recognition ofimpairmentlossestor Impairment risks contract risksunderfinancingcontracts integration ofEuropean electricity networks) investments in“wrong“ technologies Risk thatguaranteeswillbecalled investments and/orpowerplants Holding AG) listed strategicinvestments(e.g.Verbund AG,Burgenland Decline inthelistedvalueofinvestments(e.g.funds)and Market pricerisks echnology risk

esentation on the Supervisory Board and/or esentation ontheSupervisoryBoard and/or echnical upgradingatnetworkinterfaces,expansionof

Ensuring compliancewithkeyfinancialindicators shar Repr calculations Monitoring oflosspotentialviadailyvalue-at-risk monitoring experts/legal advisors, contractdatabaseandon-going Extensive legalduediligence,involvement ofexter maintenance, exter system), e.g.thr Strict systemandriskmonitoring(inter network capacityinAustria T and r Elimination oftechnicalweaknesses,r adjustments tokeeptechnologiesatthelatestlevel demonstration facilitiesandpilotpr Active participationinexter Use ofhedginginstruments e ofasubsidiaryorholdingtomeetprofit targets est raterisks e toidentify legal,economicortechnicalproblems; ect designanduseoftechnicalfacilities efinancing costsduetoratingdowngrades eholder/risk committeesoftherespective company eviews ofcurrent andplanned infrastructure fication andimplementationofnewtechnologies; e risks

Management report

ough backupsystems,technical nal audits

ease ininterest expense EVN Full Report2012/13 nal research projects, own

eceivables, goodwill, —management Risk ojects, on-going egular inspections nal control

nal

Management report Legal, political and macroeconomic risks Suitable security measures, regular measurement of Legal, regulatory and political risks water quality and emissions Changes in political and legal parameters and/or the reg- Image risk ulatory environment (e.g. environmental laws, regulations Transparent and proactive communications, high ethical and market liberalisation in South Eastern Europe) standards in all areas of the business Cooperation with interest groups, associations and government agencies on a regional, national and Key features of the internal control and risk manage- international level ment system related to accounting processes Legal and litigation risks Introduction Non-compliance with contractual obligations by several In accordance with § 267 (3b) in connection with § 243a (2) parties, or litigation risk from various lawsuits of the Austrian Commercial Code (“Unternehmensgesetzbuch”, Lobbying via local, regional, national and EU-wide UGB) as amended by the 2008 Corporate Law Amendment Act interest groups, legal consulting (“Unternehmensrechts-Änderungsgesetz”, URÄG), companies Social and general economic environment whose shares are admitted for trading on a regulated market Developments related to the debt/financial crisis, stagnation are required to disclose the key features of their internal or the decline in purchasing power control and risk management system for corporate accounting processes. Other risks Granting of undue advantages, non-compliance Under § 82 of the Austrian Stock Corporation Act (“Aktien Distribution of confidential internal information to third gesetz”, AktG), the Executive Board is responsible for establish- parties and the granting of undue advantages/corruption ing a suitable internal control and risk management system for Interne control systems, uniform guidelines and stand- accounting processes. ards; reorganisation of the subsidiaries in South Eastern Europe; Code of Conduct, compliance organisation EVN developed and implemented an internal control system Project risk (ICS) that meets the requirements of the 2008 Corporate Law Cost overruns on the construction of new generation and/or Amendment Act. The ICS is monitored at regular intervals by network capacity auditing the processes that are considered to be exposed to risk. Contractual agreement on economic parameters The results of these monitoring activities are reported to the Planning risk Executive Board and the Supervisory Board. The ICS ensures clear Model risks, incorrect or incomplete assumptions lines of responsibility and eliminates unnecessary process steps, Feasibility studies by experienced, highly qualified and thereby further improves the security of processes for the employees, monitoring of parameters and regular preparation of financial data. updates, four-eyes principle Organisational and employee risks The description of the major features of the ICS covers five Loss of highly qualified employees, absence due to work interrelated components: control environment, risk assessment, accidents, surplus or shortfall of personnel, communication control activities, information and communication, and monitoring problems, cultural barriers, inefficient processes, interfaces, fraud, intentional or unintentional misrepresentations of Control environment transactions or items in the annual financial statements The Code of Conduct issued by EVN and the underlying values Attractive work environment and compensation, apply to all Group employees. EVN’s Code of Conduct is available occupational health care and safety measures, flexible in German under www.evn.at/verhaltenskodex and in English working time models, training, group events, risk- under www.evn.at/code-of-conduct. oriented internal control system (ICS) Co-investment-risk The consolidated financial statements are prepared by Group Risks related to the implementation of major projects jointly accounting. The related processes are based on an accounting with a partner guideline that defines the accounting policies to be applied as Contractual safeguards, efficient project management well as key processes and schedules for the entire Group. Binding Sabotage instructions apply to the reconciliation of intragroup accounts Sabotage, e.g. to natural gas lines, waste treatment plants or and other work required for the preparation of the consolidated waste utilisation plants financial statements.

84 EVN Full Report 2012/13 during thefinancial yearandtodeterminewhether thecontrols the required controls, toevaluate anyriskincidentsthatoccurred the auditoratleastonceeach yeartoverify compliance with analysis ofaccountingprocesses. responsible employeestothereconciliation ofaccountsandthe well asautomatedandmandatorymanualcontrol steps. and allupstream systems are protected byrestricted accessas transferred bymeansof an interface.Theaccountingsystems whereby the data from the individual financial statements are prepared withtheHyperionFinancialManagementsoftware, accounting. TheIFRSconsolidatedfinancialstatementsare use SAPsoftware (FImodule, financeandaccounting)fortheir released untilthesequalitycontrols are completeatalllevels. consolidation. Theconsolidatedfinancialstatementsare not at theposition,segmentandGroup levels,bothbefore andafter ensure correct transfertotheconsolidatedfinancialstatements. bility checksoftheindividualsubsidiaries’financialstatementsto as wellmanualcontrols bytheinvolvedcorporateservices. mated controls thatare executedbytheconsolidation software all subsidiariesare recorded correctly. Thesestepsincludeauto- in order toensure thattheindividualIFRSfinancialstatements of vent materialmisstatementsinthepresentation oftransactions and therelated control measures. services –ar eral, theheadsofstrategicbusinessunitsandcorporate their monitoring. involving riskandthecreation ofspecialcontrol measures for ing area. Theseprocesses includethedocumentationofallsteps of processes thatare considered toberelevant fortheaccount- experts orspeciallyqualified employees. plex actuarialopinionsandvaluationsare prepared byexternal necessary qualifications and undergo regular training. Com- The ICSandallaccounting-related processes are reviewed by Control measures rangefrom thereview ofresults bythe EVN AG and the major domestic and foreign subsidiaries The review ofthefinancialstatementdataincludesanalyses The corporate service departments carry out extensive plausi- Multi-stage control measures havebeenestablished topre- Risk assessmentandcontrol activities The managersresponsible forthespecific processes –ingen- The implementation of the ICS also included the designation All employees involvedin the accounting process have the e responsible forcompliancewiththeseprocesses The tion, togetherwithabalancesheetandincomestatement. quarterly reports on EVN’s posi- asset, financial and earnings part ofthecontinuousefforts tofurtherdeveloptheICS. number ofprocess adjustmentsandimprovements were madeas a are still suitable todealwiththe existing risks.In 2012/13, improvement ofthissystem. of the ICS, and their findings form the basis for the continuous and reporting procedures. control activitiesandthereby ensure theaccuracyofaccounting personnel intheinvolvedcompaniestofacilitatemonitoringand carried outthecontrols andtheauditors. supplied bythemanagersresponsible forICS, the persons who in cooperationwiththeICSCommitteebasedoninformation ble corporatebodies.Thisreport isprepared bytheICSmanager designed tosupportthemanagementofICSbyresponsi- evaluate theef ICS report onceeachyear, whichcontainsbasic information to The ExecutiveBoard provides theSupervisoryBoard with Information, communicationandmonitoring EVN’s audit department carries out regular internal reviews This information is also distributed to Management and key Executive Boar ficiency andeffectiveness oftheICSsystemandis d andtheSupervisoryBoard alsoreceive an Management report EVN Full Report2012/13 —management Risk 85

Management report Share structure and On 30 May 2012, the Executive Board of EVN AG decided to repurchase up to 1,000,000 of the company’s shares, or up capital disclosures to 0.56% of share capital, over the Vienna Stock Exchange. This share buyback was based on an authorisation of the Disclosures required by § 243a (1) of the 83rd Annual General Meeting. The share buyback programme Austrian Commercial Code was extended twice during the 2012/13 financial year, the 1. The share capital of EVN AG totalled EUR 330,000,000 as of first time on 30 December 2012, with a planned term ending 30 September 2013 and was divided into 179,878,402 zero on 31 August 2013, and the second time on 29 August 2013, par value bearer shares. An amendment to Austrian company with a planned term ending on 31 May 2014. Each of law (“Gesellschaftsrechts-Änderungsgesetz 2011“) still allows these extensions covers the purchase of up to an addi- listed companies to issue bearer shares, but requires these tional 1,000,000 of the company’s shares. The objective of shares to be securitised in one or more collective instruments. the share buyback is to improve the supply of and demand Consequently, previously issued individual shares (effective for the EVN share on the Vienna Stock Exchange. Trading share certificates) held privately or in an individual securi- in treasury shares for profit-making purposes is excluded. ties account were replaced by a collective instrument during the period from March to June 2013. Shares that were not On 13 June 2013, the Executive Board of EVN AG approved exchanged by the end of this period on 10 June 2013 were the reclassification of up to 170,000 treasury shares (up to declared as void. This declaration resulted in the suspension of 0.095% of share capital) for distribution to employees of the the right to dividend payments and the right to participate in company and certain subsidiaries as an alternative to a bonus the Annual General Meeting – until the shareholder presents payment required by an agreement concluded with employee his /her effective shares and designates a securities depository representatives. A total of 73,010 shares, or 0.04% of the account. The Executive Board is responsible for determining share capital of EVN AG, were transferred directly to these the form and content of the share certificates. Shareholders employees on 8 August 2013. The remaining shares represent are not entitled to the issue of individual share certificates. All free float. EVN AG does not have a stock option programme shares carry the same rights and duties. at the present time.

2. There are no restrictions on voting rights above and beyond the 4. EVN AG has not issued any shares with special control rights. general requirements of the Austrian Stock Corporation Act. 5. Employees who own shares in EVN AG may exercise their vot- 3. In accordance with Austrian federal and provincial constitu- ing rights at the Annual General Meeting. tional law, the province of Lower Austria is the major shareholder of EVN AG with a stake of 51%. This shareholding 6. The Executive Board has consisted of two members since the is formally held by NÖ Landes-Beteiligungsholding GmbH, retirement of Herbert Pöttschacher. The Supervisory Board is St. Pölten, which is a subsidiary of the province of Lower responsible for the appointment and dismissal of the Execu- Austria. The second largest shareholder of EVN AG is EnBW tive Board members. In selecting persons for appointment to Energie Baden-Württemberg AG, Karlsruhe, Germany. On the Executive Board, EVN AG must comply with the provisions 5 November 2010, this company announced in accordance of the Austrian Stock Exchange Act and, as a consequence with § 91 (1) of the Austrian Stock Exchange Act (“Börse of its ownership structure, must also meet the requirements gesetz”) that it did not exercise its subscription rights to the of Austrian recruitment regulations, which call for the public capital increase that was recorded in the commercial regis- tender of such positions. ter on 30 October 2010. This shareholding therefore fell below the threshold of 35% of the voting shares in EVN AG, 7. The Executive Board has not been granted any authorisations but not below the threshold of 30% as of the date on as defined in § 243a (1) no. 7 of the Austrian Commercial which the above-mentioned capital increase was recorded. Code.

As of 30 September 2013, EVN AG held 1,843,612 treasury 8. The company is not party to any change of control agree- shares, which represent 1.02% of the company’s share cap- ments that would take effect in the event of a takeover. ital (30 September 2012: 877,622 shares or 0.49% of share capital). The purchase of the treasury shares held as of the bal- 9. There are no agreements to provide compensation to the ance sheet date was based on the share buyback programmes members of corporate bodies or employees in the event of a approved by the 79th and 83rd Annual General Meetings of public takeover as defined in § 243a (1) no. 9 of the Austrian EVN AG on 17 January 2008 and 19 January 2012, respectively. Commercial Code.

86 EVN Full Report 2012/13 another keyfactor. sources. Compliancewithregulatory requirements represents because oftherisingvolumesgeneratedbyrenewable energy transmission networksisalsoacriticalelementinthisrespect of supplysecurity.Safeguarding thehigh quality oftheenergy ties. Themainobjectivefortheenergybusinessisprotection currently directed totheconsolidationofexistingbusiness activi- reliable serviceprovider forits customers. The Group’s strategyis spite ofthischallengingenvironment, EVNisworkingtoremain a tion withanewmarketdesignintothecentre ofdiscussion.In taic equipment,isshifting theissueofsupplysecurityinconnec- generation ofenergy,aboveallfrom windpowerandphotovol- far-reaching transformation.Thesteadilyincreasing, butvolatile as thepricesforprimaryenergyandCO tricity pricesontheEuropean spotandfutures markets aswell sametime,EVNintroduced aprogramme tohelpitscustomersuse 1 October 2013 as partofan energy efficiency campaign. At the electricity andnaturalgaspricesbyanaverageof3.6%as electricity prices. arein turn, influenced by the development of primary energy and ent primarilyonEVN’s investmentsinRAGandVerbund which, Strategic InvestmentsandOtherBusinessSegmentare depend- becauseofthenature inthe in earnings ofthisactivity.Earnings project orders intheenvironmental businessleadtofluctuations availability of financialresources inthepublicsector. Inaddition, energy. Thedemandforenvironmental projects isrelated tothe behaviour ofcustomersand,inthisway,alsoonsalesvolumes The developmentofoutdoortemperatures hasaneffect onthe EVN’ The European energymarketiscurrently undergoinga financial year Outlook forthe2013/14 Together withitsregional partners,EnergieAllianzreduced s successintheenergybusinessisinfluencedbyelec- 2 emissioncertificates.

Management report tariffs byanaverageof2.5%(1January2012:reduction of1.9%). average of0.4%(1January2012:stable)andnaturalgasnetwork sion asof1January2013reduced electricitynetworktariffs byan energy more efficiently. AdjustmentsbytheE-Control Commis- are non-recurring, and that reduced financialresults in2012/13 Thepriorperiodeffects fore lowerincomparisonwith 2012/13. are there - fromfor earnings ouroperatingbusinessin2013/14 of thermalgenerationplantsmore profitable. Ourexpectations electricitymarketsthatcouldmaketheoperation international there are currently nosignsofimprovement inconditionsonthe fromtion inearnings EVN’s operatingbusiness.Furthermore, Europework servicesinAustriaandSouthEastern ledtoareduc- World Bank. Settlement ofInvestmentDisputes,aninstitutioncreated bythe tion proceedingsCentre initiatedwiththeInternational for uncovered costs.Theseclaimsare alsobeingpursued inarbitra- tory authoritythatEVNshouldgenerally be compensated forthe recognised asreceivables followingaconfirmationby theregula- result inadditionalcostsforEVN.EVN’s preceding claimswere costs ofrenewable electricity,butthischangeisnotexpectedto of anewmechanismtocalculatecompensationfortheadded tory authorityon1August2013alsomarkedtheintroduction 7.3% cutinMarch. AnannouncementbytheBulgarianregula- Bulgaria, thisrepresented thesecondreduction in2013aftera offset bycorresponding adjustmentstoprocurement prices.For in Bulgariaasof1August2013.Thesepricereductions were not 3.0% inMacedoniaasof1July2013andbyanaverage4.2% reduced endcustomerpricesforelectricitybyanaverageof followed bytariff decisions bythe regulatory authorities that The above-mentionedpriceadjustmentsforenergyandnet- Europe,In SouthEastern thepriceincreases in2012were — Share structure andcapitaldisclosures, Outlook forthe2013/14 financialyear EVN Full Report2012/13 87

Management report group profit should therefore exceed the results for 2012/13. Our goal is to pursue the continuation of an attractive dividend The current distortions on the energy markets will, nonetheless, policy in coordination with a value-oriented corporate strategy in prevent a return to the level recorded in earlier years. Group net the interest of all stakeholder groups. The wide-ranging projects profit could also be significantly influenced by the development and measures implemented by EVN in all areas of the Group, of the arbitration proceedings with the Bulgarian government and their support for sustainable management, also represent an and progress on the projects in Moscow. integral part of this strategy.

We see our balanced customer base and the high customer satisfaction with our services as our most important success f acto r s, and we want to also build on this solid base in the future.

Maria Enzersdorf, 19 November 2013

EVN AG The Executive Board

Peter Layr Stefan Szyszkowitz Spokesman of the Executive Board Member of the Executive Board

88 EVN Full Report 2012/13 Main EVN AG subsidiaries

South EastEurope Energy Supply 2) 1) 3) and OtherBusiness Strategic Investments only 1 companiesincorporatedstatementsareStatus: intheEVNGroupshown.InEnvironmental 30September2013.The Consolidatedfinancial Services segment, Environmental Services Generation

Network Infrastructur

Energy T

and the indirect investmentviaEVN WEEVBeteiligungsGmbHund GmbHamountsto1.1%. and theindirect V T Utilitas servicesar he investmentsofWTEWassertechnik GmbHare project andoperating companiesinCentral, EasternandSouthEurope. erbund AG consolidatedcompanynoran investmentincludedatequity. is neitherafully investmentinVerbund EVN‘s direct AG amountsto11.5% st and2 rade andSupply

nd level subsidiaries are listed. The fully consolidatedR138-Fonds fully isnotincludedinthis listduetothelackofoperative are activities.Interests listed.The in% levelsubsidiaries

e integrated intheStrategic InvestmentsandOtherBusinesssegment.

e Austria

50.03% 49.99%

73.6% 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 100% 100% 2.6% 6.5%

00% 00% 00% 00% 00% 00% 00% 00% 00% 00% 45% 00% 00% 90% 49% 45% 00% 00% 00% 00% 00% 00%

ShkodraRegionBeteiligungsholdingGmbH

RAG-Beteiligungs-Aktiengesellschaft Burgenland HoldingAktiengesellschaft EVN WEEVBeteiligungsGmbH 00% Utilitas Dienstleistungs-undBeteiligungs-Gesellschaftm.b.H.

V EVN FinanzmanagementundV EVN Cr EVN MacedoniaHoldingDOOEL EVN MacedoniaAD EVN BulgariaEAD EVN BulgariaT EVN T EVN BulgariaElectr EVN BulgariaElectr Utilitas Dienstleistungs-undBeteiligungsGesellschaftm.b.H EconGas GmbH e&t EnergieHandelsgesellschaftmbH Fer evn naturkraft EVN Kraftwerks-undBete ENERGIEALLIANZ AustriaGmbH Utilitas Dienstleistungs-undBeteiligungsGesellschaftm.b.H EVN NetzGmbH EVN UmweltholdingundBetriebs-GmbH

EVN LiegenschaftsverwaltungGesellschaftm.b.H.

EVN EnergievertriebGmbH&CoKG EVN W evn wasserGesellschaftm.b.H.

erbund AG nwärme St. rading SouthEastEurope EAD ärme GmbH oatia Plind.o.o.BuildingandoperatingnaturalgasnetworkinCroatia

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 100% 100% 100% 100% 100%

49% 49% 50% 00% 00% 00% 00% 00% 00% 00% 00% 00% 00% 00% 00% 00% 00% 00% 3)

Power generation,tradingandtransport

oplofikatsia EAD

Pölten GmbH Erzeugung

Joint venture ofEnergieAllianzpartneringasbusinesswithOMVandEGBV

Operation ofelectricityandnaturalgasnetworks

Management companyinBulgaria

kabelplusAG

osnabdjavane EAD orazpredelenie EAD

Supply ofheat,gas,combinedcycleheatandpower, biogasheat,solarenergyandheatpumpfacilities

Energie BurgenlandAG WEEV BeteiligungsGmbH as wellenvironmental projects in18 countries Rohöl-Aufsuchungs Aktiengesellschaft V&C KathodischerKorr EVN GeoinfoGmbH STEAG-EVN Walsum 10KraftwerksgesellschaftmbH EVN FinanzserviceGmbH EVN BusinessServiceGmbH EVN UmweltFinanz-undService-GmbH EVN UmweltBeteiligungsundServiceGmbH EVN Projektgesellschaft Müllverbrennungsanlage Nr. 3mbHWaste incinerationinMoscow EVN AbfallverwertungNieder EVN MacedoniaElektraniDOOEL,Skopje, EVN EnergyT EVN EnergyT Switch Energievertriebsgesellschaftm.b.H. Naturkraft Energievertriebsgesellschaftm.b.H. evn naturkraftBeteiligungs-undBetriebs-GmbH Naturkraft EOOD EVN Kavar EVN Pr WTE W Energji AshtaSh.p.k Electricity networkoperatingandsupplyinMacedonia 13 sgesellschaft m.b.H.Electricitygenerationfrom renewable energysources iligungsge ojektmanagement GmbH assertechnik GmbH,EssenGermany % Jointventure withStadtwerkeSt.

na EOODElectricitygenerationfrom windpowerinBulgaria ermietungs GmbHGroup financing

Drinking watersupplyinLowerAustria

District heatingcompanyinBulgaria

Joint EnergieAllianzpartnersalessubsidiary Management companyinMacedonia

rading DOOEL,Skopje,Macedonia rading d.o.o.Belgrade,Serbia Cable TV and internet services Cable TVandinternet

sellschaft mbH Electricity andnaturalgassalestoendcustomerswithinEnergieAllianz erbund-I Electricity tradinginBulgaria Electricitygenerationfrom photovoltaicsin Bulgaria

Joint EnergieAllianzpartnerenergytradingandsourcing company Electricity supplyinBulgaria

Electricity networkoperatinginBulgaria Digital cartography H osionsschutz Gesellschaftm.b.H.Cathodiccorrosion protection olding companyfordrinkingwatersupply,wastewaterandwasteincinerationsservices

Electricity andgassupply Holding inconnectionwithhydropower project AshtainAlbania nnkra Group financing

österreich GmbHWaste incinerationinLowerAustria

Managementofelementspowerplant ftwerke DeutschlandGmbH Oilandnaturalgasexplorationstorage

Pölten indistrictheatingbusiness

1) 1) Technical services

Technical services Electricity andnaturalgassalesinAustria Drinking watersupplyandwastewaterservices Technical services Electricity trading 2)

Electricity salesfrom renewable energysources

Electricity trading Construction ofacoalfired powerplantinDuisburg, Germany

Hydroelectric powergeneration

EVN Full Report2012/13

Management report Segment reporting

Overview services. The environmental services business involves activities in the areas of drinking water supply, wastewater disposal and The structure of the EVN Group is based on three general thermal waste incineration. categories: the energy business, the environmental services business and other business activities. The energy business covers Taking the requirements of IFRS 8 “Business Segments” into the entire electricity and heat value chain from generation and account, the operating segments are identified solely on the transmission to networks and supply, while the gas business is basis of EVN’s internal organisational and reporting structure. concentrated on the transmission and network stages. This prod- Below is a description of both the operating performance of uct portfolio is supplemented by the activities of EVN subsidiaries EVN’s six segments and the effects of energy sector indicators on in related areas as well as regional cable TV and telecommunication their development.

Business areas Segments Activities

Energy business Generation Electricity generation from thermal sources and renewable energies at Austrian and international locations

Energy Trade and Supply Procurement of electricity and primary energy sources, trading and sale of electricity and natural gas to end customers and on wholesale markets as well as heat generation and sale

Network Infrastructure Operation of regional electricity and natural gas networks as well as Austria cable TV and telecommunications networks

Energy Supply Operation of electricity networks and electricity sales to end customers South East Europe in Bulgaria and Macedonia, heat generation and sale in Bulgaria, electricity generation in Macedonia, construction and operation of natural gas networks in Croatia, energy trading throughout the entire region

Environmental services Environmental Services Drinking water supply, wastewater disposal and thermal waste business incineration in Austria, operation of combined cycle heat and power co-generation plants in Moscow as well as international project business

Other business activities Strategic Investments and Strategic and other investments, corporate services Other Business

90 EVN Full Report 2012/13 Thermal energy sourcesThermal Natural gas thereof Central andWestern Europe Renewable energy sources thereof SouthEasternEurope thereof Central andWestern Europe thereof SouthEasternEurope 2) 1) Heat Natural gas Electricity Energy salesvolumestoendcustomers Network distributionvolumes Electricity generationvolumes EVN’s keyenergybusinessindicators Electricity South EastEur

Investments and Centr Incl. networkd Other Business Environmental Energy Supply i Revenue bysegments 2012/13 2011/12 Infrastructure n EURm Energy Trade Generation and Supply al andWestern Europe coversAustriaandGermany. Strategic Network Services Austria 1) ope

istribution volumestoEVNpowerplants 1) 2.3 3.3 34.6

40.3 External r evenue 227 314.9 1) .2 438.2 443.8 2) 2)

968.6 1,007.3 1,038.8 1,082.2 GWh South EastEur 2012/13 0292,4 102–. 20,403 –4.9 –1,032 21,241 20,209 Environmental Energy Supply 3001,1 73–. 13,260 –5.7 –793 13,814 13,020 0962,1 73–. 21,150 –3.3 –703 21,619 20,916 5291,3 16–. 16,415 –1.3 –196 15,435 15,239 i EBIT bysegments 2012/13 2011/12 Infrastructure n EURm Energy Trade ,6 ,5 1 . 1,911 6,475 5.7 2.7 111 166 1,951 6,166 2,062 3,332 6,333 12.7 417 3,284 3,701 ,4 1,781 1,747 ,5 ,0 5 001,181 30.0 451 1,503 1,954 ,8 ,2 29–. 7,143 –3.2 –239 7,427 7,188 ,5 ,1 4 . 1,678 8.6 147 1,710 1,857 Generation and Supply 0 241 205 Network Services –9.1 –9.6 Austria ope

2011/12 Strategic Other Business Investments and 9.8 9.6 14.8 18.1

37.1 45.3 oia in% nominal 51.2 Segment reporting 51.9 3 192,151 –1.9 –34 3 1. 233 –14.9 –36 EVN Full Report2012/13 Change 102.2 — Overview 1 2010/11 20.4 91

Segment reporting Generation Highlights 2012/13 The Generation Segment covers the generation of electricity from thermal production capacities and renewable energy sources in Austria, Germany, Bulgaria and Albania as well as Increased power generation from renewable energy projects for the construction of power generation plants in sources Austria, Germany and Bulgaria. – Start of operations at the Ashta hydropower plant – Higher electricity procurement from the Inn River The external revenue recorded by this segment is derived power plants mainly from the sale of electricity from renewable windpower. – Good water flows Internal revenue from electricity generation (in particular hydro- Extension of the contract to provide 785 MW of power plants as well as windpower plants that are no longer reserve capacity per year for southern Germany covered by subsidy schemes) is based on the market price for during the next three winter half-years electricity. Revenue from EVN AG’s thermal power generation Revenue decline of 15.3% and the storage power plants is based on the option value, which – Decline in market prices for electricity generally reflects the pre-defined difference between the for- – Lower option value due to absence of free CO2 ward prices for electricity and the related fuel costs. The option emission certificates value also includes the provision and use of reserve capacity to – Weaker wind conditions ensure network supplies in southern Germany. The sale of the Financial results negatively affected by one-off effects generated electricity and the procurement of primary energy are – Negative earnings effect due to withdrawal from reported under the Energy Trade and Supply Segment. the Devoll hydropower project – Negative earnings from the Ashta hydropower plant The income from investments consists primarily of the earn- project ings contributions from investments in power plants and in the Duisburg-Walsum, Verbund-Inn River and Ashta power plant projects. The 50% stake in the planned Devoll River hydropower EVN covered 18.3% of the electricity sold during the reporting plant in Albania was sold to the project partner Statkraft A.S. in year with its own production (previous year: 15.5%). Excluding March 2013; the closing took place on 7 May 2013. energy sales by the Energy Supply South East Europe Segment, the coverage ratio equalled 51.5% (previous year: 44.2%). The Development of power generation share of renewable energy in the Group’s total production was Electricity generation rose by 216 GWh, or 7.7%, to 3,021 GWh 52.8% (previous year: 45.8%). in 2012/13. The volume generated from renewable energy sources totalled 1,637 GWh, which is 305 GWh, or 22.9%, higher Revenue development than in the previous year. This increase is attributable, above all, Despite the good water flows and revenue from the provision to the start of operations at the Ashta hydropower plant and and use of reserve capacity by the Federal Network Agency in higher electricity procurement from the Inn River power plants. Germany, revenue in the Generation Segment fell by EUR 20.7m, In addition, the production coefficient for the run-of-river hydro- or 15.3%, year-on-year to EUR 114.3m. This development power plants exceeded the prior year level of 105.0% at 108.0% resulted primarily from a decline in the market price of electric- in 2012/13. A reduction in power requests from the Feder al ity and from a lower option value for the thermal power plants

Network Agency in Germany led to a year-on-year decline in the following the discontinuation of free CO2 emission certificates as use of EVN’s gas-fired power plants. The thermal production from of 1 January 2013. Weaker wind conditions also had a negative EVN’s own heating plants therefore fell by 89 GWh, or 6.0%, effect on revenue. to 1,384 GWh. However, a contract concluded with the Federal Network Agency in Germany during the third quarter of 2012/13 Operating expenses and operating results for the provision of 785 MW of annual reserve capacity over a Operating expenses increased by EUR 1.1m, or 1.5%, to further three winter half-years will allow for the partial utilisation EUR 76.8m in 2012/13, above all due to higher purchases of elec- of capacity at the EVN gas-fired power plants. tricity from the Inn River power plants. EBITDA therefore fell by EUR 21.8m, or 36.8%, to EUR 37.5m. Depreciation and amorti sation dropped EUR 16.7m, or 37.4%, to EUR 27.9m, whereby the 2011/12 results were influenced by impairment losses to

92 EVN Full Report 2012/13 Investments Total liabilities thereof thermalenergy sources Internal revenue Financial resultsFinancial Depreciation andamortisation Operating expenses thereof renewable energy sources Total assets he prior year figure wasadjusted(seeconsolidatednotes, note2.Reportinginaccordancehe prioryearfigure withIFRSonpage108) 2) 1) Profit before incometax Results from operatingactivities(EBIT) EBITDA Total revenue Electricity generationvolumes Key energybusinessindicators Key indicators–Generation External revenue Key financialindicators 86.2%, year-on-year, whereby thefocusremained on the before taxtoEUR–46.3m. In total,thesedevelopmentsled toaEUR49.6mdrop in profit sale ofcertified emissionreductions (CERs)continuestodecline. delayed receipt ofpayments, and theestimatedincomefrom the related highercosts.Customer riskhasalsoincreased duetothe construction stageaswellrelated constructiondelaysandthe economic compensationforflooddamageincurred duringthe increase inuncertaintyover theextensionofconcessionas resulted from andasubsequent achangeinthegovernment development power plantinAlbania.Thisnegativeearnings Beteiligungsholding GmbHinconnectionwiththeAshtahydr contributionofEUR20.4mfromearnings ShkodraRegion hydropower plantinAlbania. Itwasalsobasedona effect ofEUR27.6m from thesale of the 50% stake in the Devoll reporting year. Thisdeclinereflected aone-off negativeearnings below theprioryearatEUR9.6m. Results from operatingactivities(EBIT)were EUR 5.2m, or35.0%, windpark. the biomasspilotplantinDürnrohrandKavarna

In intangibleassetsandpr T Investments inthissegmentincreased byEUR13.8m, or Investments Financial results fellbyEUR44.5mto–55.9mforthe Financial results andprofit before tax 1) 2) 1) 1) operty, plantandequipment 1) negative EURm GWh o-

increase contributionfrom in theearnings this business.Earnings sources, above allwindpowerplants,which should lead to an the expansion of electricity generation from renewable energy the Federal Germany–asrequiredport networksecurityforsouthern by andTheisswillbeusedprimarilytosup- plants inKorneuburg ity. From thecurrent pointofview,theEVNgas-fired power between primaryenergycostsandthemarketpriceofelectric - for thermalgenerationremains difficult duetothelowspread Generation Segmentduring2013/14.Theoperatingframework tinue tohaveanegativeeffect onbusinessdevelopmentinthe turbine builtbyEVN. in with apartner, workbeganontherealisation ofawindpark expansion ofwindpowercapacityinLowerAustria.Together 000 households.Thisproject alsoincludedthe100 10,000 and totalcapacityof15MW, nowprovides electricitytoroughly ations duringSeptember2013and,withitsfivewindturbines eight windturbineswithatotalcapacityof24MWare electricity. ThewindparkinDeutsch-W supply to startoperationsduringthewinterof2013/14andwill 2012/13 Pr The unfavourabledevelopmentofelectricitypriceswillcon Outlook 1. 3. 2. 1. 97.1 –15.3 –20.7 3,000 135.1 7.7 114.3 216 2,805 3,021 –46.3 0. 3. 241. 484.7 11.6 62.4 538.4 600.8 1,473 1,384 ,3 ,3 0 291,002 22.9 305 1,332 1,637 4. 2. 8635745.9 3.5 28.6 820.5 849.1 2. 4. 673. –35.7 37.4 16.7 –44.5 –27.9 7. 7. 11–. –65.0 –1.5 –1.1 –75.7 –76.8 5. 1. –44.5 –11.5 –55.9 ellenkirchen duringthesecondquarterof2012/13.These 755. 2. 3. 32.1 –36.8 –21.8 59.3 37.5 989. 1. 1. 73.0 –15.8 –15.0 94.8 79.8 464. 57–4224.1 –14.2 –5.7 40.3 34.6 981. 388. 70.8 86.2 13.8 16.0 29.8 . 48–. 3. –3.6 –35.0 –5.2 14.8 9.6 nearly 16,000households with environmentally friendly Network 2011/12 . –49.6 3.3 Agency. Activities will continue to focus on Segment reporting oia in% nominal 8 601,998 –6.0 –89 EVN Full Report2012/13 Change agram alsostartedoper –36.5 – –32.9 – — Generation 2010/11 scheduled th wind 93 - -

Segment reporting in the Generation Segment are expected to exceed the prior year Revenue development in 2013/14 due to the absence of effects from the sale of the Revenues totalled EUR 1,082.4m, which represents a year-on- investment in the Devoll hydropower plant in Albania and the year decrease of EUR 46.1m or 4.1%. This development resulted reduction in the at-equity carrying amount of Ashta. mainly from the transfer of the cost advantage from lower purchase prices for renewable electricity in the form of reduced energy prices and the general decline in the market price for electricity. Higher sales volumes of natural gas and a volume- Energy Trade and Supply and price-related revenue increase in the heating area were unable to offset this trend. Results for the previous year also The Energy Trade and Supply Segment is responsible for the included the revenue generated by first facility GmbH, which trading and sale of electricity and natural gas to end customers, was sold during July 2012. primarily in the Austrian home market and in wholesale markets. The segment’s business activities also include the procurement of Operating expenses and operating results electricity, natural gas and other primary energy carriers as well Operating expenses fell by EUR 64.6m, 5.9%, to EUR 1,029.4m as the production and sale of heat. for the reporting year. This reflects a drop in the volume of electricity purchases as well as a decline in procurement costs due to Internal revenue consists mainly of electricity sales to the lower prices for renewable electricity. In contrast, expenses were Network Infrastructure Austria Segment to cover network losses. increased by higher procurement costs for natural gas sales to end customers and for fuel used by the heating plants. Results The income from investments is based mainly on the earnings for 2012/13 and 2011/12 also include provisions for onerous contributions from EconGas, e&t and the district heating plants contracts from the marketing of EVN’s own electricity produc- in St. Pölten and Steyr. tion. EBITDA rose by EUR 18.5m, or 53.7%, to EUR 53.1m. Depreciation and amortisation remained nearly constant, and results from operating activities (EBIT) increased EUR 18.9m year- Highlights 2012/13 on-year to EUR 37.1m.

Energy sales to end customers Financial results and profit before tax – Decline in electricity sales due to lower volumes Financial results fell by EUR 20.7m to EUR –28.2m in 2012/13. with industrial customers This decline reflected the net negative earnings contribution of – Temperature-related increase in sales volumes of EUR 19.7m from EconGas, which was based on the high nega- natural gas and heat tive spread between crude oil price-based natural gas purchases Decrease in electricity revenue and electricity and hub-price linked sales plus the recognition of a provision procurement costs due to lower prices for renewable for impending losses on contractually agreed, long-term trans- electricity and volume decline port and LNG capacity bookings. Profit before tax amounted Financial results reduced by negative earnings to EUR 8.9m, which is EUR 1.8m or 16.8% lower than in the contribution from EconGas previous year.

Investments Development of energy sales to end customers Investments totalled EUR 30.1m in 2012/13, which reflects Energy sales to end customers differed by market in 2012/13. the prior year level. These expenditures continued to focus on A volume decline in the industry customer segment outside the expansion of the district heating plants and network. The EVN’s Austrian supply region led to a decrease of 239 GWh, biomass district heating plant in Steyr, which was built together or 3.2%, in electricity sales to 7,188 GWh. In contrast, natural with Energie AG Oberösterreich, started operations during the gas volumes were 166 GWh, or 2.7%, higher than the previous reporting year and now supplies roughly 12,000 households year at 6,333 GWh due to the colder temperatures. The steady with electricity and heat. With over 60 biomass plants, EVN is the expansion supported an increase of 147 GWh, or 8.6%, in heat largest supplier of natural heat in Austria. sales volumes to end customers.

94 EVN Full Report 2012/13 Investments Heat Total liabilities Internal revenue Natural gas Depreciation andamortisation Total assets resultsFinancial Operating expenses l amount 2) 1) *) Profit before incometax Results from operatingactivities(EBIT) EBITDA Total revenue Energy salesvolumestoendcustomers Key energybusinessindicators Key indicators–EnergyTrade andSupply improvement isexpectedfor2013/14. inearnings of capacityandanincrease innetworkconnections.Intotal,an duetotheexpansion business shouldgeneratehigherearnings tion byEconGas, which wasrecorded in2012/13.Theheating in provision ofreserve capacityfortheFederalNetworkAgency effectssegment. Positiveearnings canbeexpectedfrom the will alsohaveanegativeeffect onrevenueinthis andearnings and naturalgasthatwere implementedasof1October2013 in salesvolumesofelectricity.Thepricereductions forelectricity for thelimiteduseofthermalpowerplantsandleadtoadecline continuing unfavourablelevelofmarketprices,whichonlyallow External revenue Key financialindicators Electricity

In intangibleassetsandpr T Smal Germany A declineinrevenue isalsoexpectedfor2013/14duetothe Outlook he prior year figure wasadjusted(seeconsolidatednotes,note2.Reportinginaccordancehe prioryearfigure withIFRS,page108) 1)

2) and the absence of the negative earnings contribu- and the absence of the negative earnings 1) 1) operty, plantandequipment 1)

Segment reporting EURm GWh — Energy Trade andSupply,NetworkInfrastructure Austria Steiermark GmbH;theclosingtookplaceon11February2013. Niederösterreich NetzGmbHandGasnetz GmbH,OÖ.Ferngas Grid Management AG in equal shares to Landesverteiler Netz Gas ConnectAustriasolda45%stakeinAGGMAustrian from the R 138-Fund to EVN Netz GmbH. As of 29 October 2012, revenue.internal Incomefrom investmentsincludesadistribution above allinconnectionwithconstruction,whichare reported as and Burgenland.Thissegmentalsoincludescorporateservices, the cableTVandtelecommunicationsnetworksinLowerAustria tion oftheregional electricityandnaturalgasnetworksaswell 1094–,9. 4659–1,060.4 5.9 64.6 –1,094.0 –1,029.4 2012/13 ,8. ,2. 4. 411,164.3 –4.1 –46.1 1,128.5 1,082.4 ,3. ,8. 4. 401,113.5 –4.0 –43.4 1,082.2 1,038.8 The NetworkInfrastructure AustriaSegmentcoverstheopera- Network Infrastructure Austria ,5 ,1 4 . 1,678 8.6 147 1,710 1,857 2. 1. 5136363.9 3.6 15.1 413.5 428.6 ,3 ,6 6 . 6,475 2.7 166 6,166 6,333 1. 2. 183–73634.1 –17.3 –108.3 624.9 516.5 ,8 ,2 29–. 7,143 –3.2 –239 7,427 7,188 1. –16.4 –16.0 2. 75–20.7 –7.5 –28.2 313. 855. 103.9 53.7 18.5 34.5 53.1 711. 18.9 18.1 37.1 374. 27–. 50.8 –5.8 –2.7 46.3 43.7 013. 0.0 30.1 30.1 . 07–. 1. 90.6 –16.8 –1.8 10.7 8.9 2011/12 oia in% nominal EVN Full Report2012/13 . . –15.1 2.5 0.4 Change *) 88.8 – – 25.3 – 2010/11 1.8 95

Segment reporting ers and a further decline in the use of EVN’s gas-fired power Highlights 2012/13 plants, despite an increase in the household and business customer segment. Increase in electricity distribution volumes Decline in natural gas distribution volumes Revenue development – Weaker demand from industrial customers The Network Infrastructure Austria Segment generated – Continued decline in use of EVN‘s gas-fired revenue of EUR 505.7m in 2012/13, for an increase of EUR 2.8m, power plants or 0.6%, over the previous year. This increase was supported by Adjustment of network tariffs as of 1 January 2013 higher electricity network volumes, which were offset in part by a – Natural gas: –2.5% decline in other revenue that reflected the year-on-year decrease – Electricity: –0.4% in customer projects invoiced as of the balance sheet date. In addition, an asset of EUR 4.1m was recognised for the regulatory account. Revenue from cable TV and telecommunications ser- Development of network distribution volumes vices remained stable during the reporting year. Network tariffs for electricity and natural gas are adjusted annually on 1 January by the E-Control Commission in accord- Operating expenses and operating results ance with the incentive regulatory system. As of 1 January 2013, Operating expenses fell by EUR 16.0m, or 5.3%, to the natural gas network tariffs were reduced by an average EUR 284.6m. This development reflected a decline in previously of 2.5% (1 January 2012: reduction of 1.9%) and electricity recognised network costs as well as an increase in work in pro- network tariffs were reduced by an average of 0.4% (1 Janu- cess due to the lower volume of customer projects that had not ary 2012: stable). Electricity network distribution volumes rose been invoiced as of the balance sheet date. EBITDA amounted by 103 GWh, or 1.3%, to 7,885 GWh in 2012/13, above all to EUR 221.1m, which is EUR 18.8m, or 9.3%, higher in year- due to the colder temperatures. In contrast, natural gas net- on-year comparison. Depreciation and amortisation were nearly work distribution volumes declined by 203 GWh, or 1.3%, to constant and supported an increase of EUR 18.2m, or 17.8%, in 15,232 GWh owing to weaker demand from industrial custom- results from operating activities (EBIT) to EUR 120.4m.

Change Key indicators – Network Infrastructure Austria 2012/13 2011/12 nominal in % 2010/11 Key energy business indicators GWh Network distribution volumes Electricity 7,885 7,782 103 1.3 7,754 Natural gas 15,232 15,435 –203 –1.3 16,415

Key financial indicators EURm External revenue 443.8 438.2 5.6 1.3 423.5 Internal revenue 61.9 64.7 –2.8 –4.3 55.2 Total revenue 505.7 502.9 2.8 0.6 478.8 Operating expenses1) –284.6 –300.6 16.0 5.3 –287.5 EBITDA1) 221.1 202.3 18.8 9.3 191.3 Depreciation and amortisation –100.7 –100.1 –0.6 –0.6 –98.8 Results from operating activities (EBIT)1) 120.4 102.2 18.2 17.8 92.5 Financial results1) –19.0 –20.5 1.5 7.3 –11.1 Profit before income tax 101.4 81.6 19.7 24.2 81.3 Total assets 1,797.8 1,698.4 99.5 5.9 1,673.2 Total liabilities 1,267.0 1,214.2 52.8 4.3 1,148.4 Investments2) 176.4 144.8 31.6 21.8 160.9

1) The prior year figure was adjusted (see consolidated notes, note 2. Reporting in accordance with IFRS, page 108) 2) In intangible assets and property, plant and equipment

96 EVN Full Report 2012/13 energy tradingthroughout theregion. and thesaleofnaturalgastoendcustomersinCroatia aswell sale of heat in Bulgaria, the generation of electricity in to endcustomersinBulgaria and Macedonia, the generation and for theoperationofelectricitynetworksandsale natural gasnetworks. to fullyoffsetfrom thedeclineinearnings electricityand higher revenue in2013/14.However, thisincrease willbeunable cable TVandtelecommunicationsarea shouldgenerateslightly effect since1January2013.From thecurrent pointofview,the new regulatory periodforthenaturalgasnetworkhasbeenin new electricitynetworkregulatory periodon1January2014.The record lowerrevenue in2013/14becauseofthetransitionto sive developmentofgenerationfrom renewable energy sources. guard supply security in view of the rising feed-in from the inten- transport pipelineWestschiene andnetworkexpansiontosafe- Activities were focusedontheconstructionofnaturalgas 24.2%. the reporting year, whichreflects anincrease ofEUR19.7mor in interest expense.Profit before taxequalledEUR101.4mfor vious yearbyEUR1.5m,or7.3%,aboveallduetothedecline The EnergySupplySouthEastEurope Segmentisresponsible Energy SupplySouthEastEurope The NetworkInfrastructure AustriaSegmentisexpectedto Outlook Investments rose byEUR31.6m,or21.8%,to176.4m. Investments Financial results totalledEUR–19.0mandexceededthepre- Financial results andprofit before tax Segment reporting Macedonia electricity — Network Infrastructure Austria,EnergySupplySouthEastEurope

were costs forthesalescompanieswasretracted. Theresulting claims plants wasagainamended,andtheincrease inprocurement electricity andforfrom highlyefficient co-generation mine the compensation for theadditional costs of renewable August2013,therevised methodtodeter customers. On1 Bulgaria require compensationfortheseadditionalcosts byend company. Thelegalregulationsrenewable governing energyin ity procurement costsforEVNBulgariaEC,theresponsible sales rise infeed-involumesledtoasubstantialincrease inelectric- contracts withrenewable electricityproducers and therelated effective asof1July2012.Thelargenumbernewsupply ity andforelectricityfrom highlyefficient co-generation plants late compensationfortheadditionalcostsofrenewable electric- authorities announced a change in the method used to calcu- on 1August2013.Asof16July2012,theBulgarianregulatory cut these prices by 7.3% on 5 March 2013 and by a prices forelectricityby13.6%asof1July2012,butsubsequently price ofnaturalgas. inconnection withareduction of9.8%inthe 1 January 2013 by 20.6%asof1July2012 andbyafurther5.9%asof created bytheWorld Bank. Center fortheSettlementofInvestmentDisputes,aninstitution protect EVN’s investmentwere alsoinitiatedattheInternational for theuncoveredarbitrationproceedings costs.International to r egulatory authoritythatEVNshouldgenerallybecompensated

Highlights 2012/13 The regulatory authoritiesinBulgariaraisedtheendcustomer Energy sectordevelopment The endcustomerpricesforheat inBulgariawere reduced ease inelectricity generation ariff changesforelectricityinMacedonia ariff reduction of5.9%forheatinBulgaria ariff changesforelectricityinBulgaria in r – Incr – T in January2013 T – several steps T –

ecognised asareceivable following aconfirmationbythe

T August 2012:+9.8%;July2013:– July 2012:+1 F hydr August 2013:– in Plovd akeover of operations at additional small akeover ofoperations atadditional ull-year operationsull-year atco-generation plant opower plantsinMacedonia iv, Bulgaria 3.6%; March 2013:–7.3%; 4.2% EVN Full Report2012/13 3.0%

further

4.2% 97 -

Segment reporting Change Key indicators – Energy Supply South East Europe 2012/13 2011/12 nominal in % 2010/11 Key energy business indicators GWh Electricity generation volumes 427 257 170 66.3 112 thereof thermal power plants 292 235 57 24.2 86 thereof renewable energy 135 22 113 – 26 Network distribution volumes1) 13,031 13,837 –806 –5.8 13,396 Heat sales volumes to end customers 205 241 –36 –14.9 233

Key financial indicators EURm External revenue 1,007.3 968.6 38.7 4.0 834.2 Internal revenue 0.4 0.1 0.2 – 0.1 Total revenue 1,007.7 968.7 39.0 4.0 834.3 Operating expenses2) –890.6 –859.9 –30.7 –3.6 –747.4 EBITDA2) 117.1 108.8 8.3 7.6 86.8 Depreciation and amortisation –65.8 –63.5 –2.4 –3.7 –77.1 Results from operating activities (EBIT) 2) 51.2 45.3 5.9 13.0 9.7 Financial results2) –27.5 –27.6 0.1 0.5 –19.6 Profit before income tax 23.7 17.7 6.0 34.1 –9.8 Total assets 1,384.9 1,250.0 134.9 10.8 1,140.1 Total liabilities 1,050.2 935.2 115.1 12.3 812.0 Investments3) 82.4 90.3 –7.8 –8.7 112.5

1) In Bulgaria and Macedonia energy sales volumes are approximately equivalent to present network distribution volumes. 2) The prior year figure was adjusted (see consolidated notes, note 2. Reporting in accordance with IFRS, page 108) 3) In intangible assets and property, plant and equipment

In Macedonia, the regulatory authority followed an initial Network sales volumes fell by 806 GWh, or 5.8%, to price increase on 1 January 2012 with a further increase of 9.8% 13,031 GWh due to the lower heating degree total (Bulgaria in the electricity price for end customers as of 1 August 2012. –20.2 and Macedonia –25.3 percentage points). These price increases are intended, above all, to cover the higher costs incurred by EVN Macedonia since 2012. These Revenue development costs resulted from the procurement of energy not covered by The Energy Supply South East Europe Segment generated rev- Macedonian generation capacity and also reflect the network enue of EUR 1,007.7m, for an increase of EUR 39.0m or 4.0%. losses which, since 1 January 2012, cannot be covered at reg- This development was supported, above all, by price increases ulated prices, but must be purchased on the wholesale market. implemented in Macedonia during 2012/13 and full-year opera- On 1 July 2013, the regulatory authority announced an average tions at the co-generation plant in Plovdiv, Bulgaria. reduction of 3.0% in the electricity price for end customers that was accompanied by an increase in the procurement price and Operating expenses and operating results the tariffs for state-owned transmission network operators. Operating expenses rose by EUR 30.7m, or 3.6%, to EUR 890.6m, in particular due to higher procurement costs for The electricity generation volume rose from 257 GWh to electricity and an increase in other operating expenses. EBITDA 427 GWh for the reporting year. This growth was based on the was EUR 8.3m, or 7.6%, higher at EUR 117.1m. The increase in contributions of the seven small hydropower plants in Macedonia depreciation and amortisation resulted primarily from the full- that were leased to third parties up to January 2013 and which year operation of the co-generation plant in Plovdiv. Results from are now operated by EVN as well as the electricity from the operating activities (EBIT) amounted to EUR 51.2m in 2012/13, a co-generation plant in Plovdiv, Bulgaria. year-on-year increase of EUR 5.9m, or 13.0%.

98 EVN Full Report 2012/13 water puri plant inZagreb) andZOV UIP(operationofthecentralwaste financing and construction of the central wastewater purification contributionsprovidedearnings bytheCroatian ZOV(planning, Europe. Theincomefrom investmentsisrelated chiefly tothe throughoutandSouthEastern Central,Eastern in 18 countries projectutilisation inAustriaaswelltheinternational business drinking watersupply,wastewatertreatment andthermalwaste arbitrationproceedingsinternational withBulgaria. possible. Anotherimportantfactoristhedevelopmentof reduction of network losses should offset this effect to the extent restructuring processes, efficiency improvements and the steady electricity pricesinBulgariaandMacedonia.Thecontinuationof to record in2013/14followingthecutback lowerearnings 34.1%, toEUR23.7m. in2012/13.Profit before taxroseEUR –27.5m byEUR6.0m,or construction oftheco-generationplantinPlovdiv level ofinvestmentsintheprevious year, inparticularduetothe natural gassuppliesinCr technology inBulgariaandMacedoniatheexpansionof and quality as well as the expansion of network and meter jects continuedtofocusontheimprovement ofsupply declined byEUR7.8m,or8.7%,to82.4min2012/13.Pro

Highlights 2012/13 The activitiesoftheEnvironmental ServicesSegmentcover Environmental Services The EnergySupplySouthEastEurope Segmentisexpected Outlook Investments intheEnergySupplySouthEastEurope Segment Investments Financial results nearlymatchedtheprioryearlevelat Financial results andprofit before incometax urther measures tosafeguard andimprove drinking iculties withrealisation ofenvironmental projects water suppliesin Lower Austria F in Moscow Diff plantsinWarsaw duringMarchpurification 2013 Opening ofoneEur due tohigherproject completionsinprioryear Revenue declineininternationalpr fication plantinZagreb). oatia. Thedeclinereflects thehigh ope’s largest wastewater oject business Segment reporting .

security -

— Energy SupplySouthEastEurope, Environmental Services struction ofthree wastewater purification plantsinandaround in December2012withanorder fortheplanningandcon- andexpandtheexistingwastewaterpurificationmodernise plantin during the reporting year and construction work started to for theMiaMiliawastewaterpurification plantcontinued started operationsin2012/13.InCyprus,thecommissioning EUR 12.0min2012/13,compared withEUR22.7min2011/12. of EUR542.1mas30September2013.Investmentstotalled Environmental ServicesSegment,whichhadatotalorder volume EUR 41.7m, or65.6%,incomparisonwiththeprevious year. result. Profit before taxequalledEUR21.8m,foradeclineof 12.1m,primarily due to animprovement innetinterest EUR or 81.2%. totalled EUR9.8m,forayear-on-year decrease ofEUR42.1m, or 6.4%,toEUR28.9m.Resultsofoperating activities (EBIT) vious year. Depreciation andamortisationrose byEUR1.7m, to EUR38.7m,whichis40.4m,or51.1%,belowthepre- fell byEUR46.9m,or18.3%,to209.7m.EBITDAamounted the previous year’s level. utilisation anddrinkingwatersuppliesinLowerAustriareflected project completionsintheprevious year. Revenuefrom waste project resulted business which, in turn, primarily from higher development isattributabletoadecrease intheinternational EUR 87.3m, or26.0%,incomparisonwiththeprevious year. This 248.4min 2012/13, whichrepresents a declineof of EUR up todate. operations inthe firstquarterof2012/13with successful r treatment Lithuania,started one-yeartest plantinVilnius, only 21 months,andentered aone-yeartestphase.Thesludge in thethird quarterof2012/13,afteraconstructionperiod of water purification plantsinGherlaandHuedin,were completed two andahalf years.Two otherprojects inRomania,thewaste- during thethird quarterof 2012/13andshouldbecompletedin Silvaniei intheSalajadministrativedistrict.Constructionstarted Lar EVN furtherexpandeditsactivitiesintheRomanianmarket The co-generationplantinLyuberzy, asuburbofMoscow, EVN iscurrently realisingprojects nineinternational inthe Investments Financial results increased byEUR0.4m,or3.3%, to Financial results andprofit before tax In linewiththedevelopmentofrevenue, operatingexpenses Operating expensesandoperatingresults The Environmental Servicessegmentgeneratedrevenue Revenue development naca. EVN Full Report2012/13 esults 99

Segment reporting Change Key indicators – Environmental Services EURm 2012/13 2011/12 nominal in % 2010/11 External revenue 227.2 314.9 –87.7 –27.8 329.8 Internal revenue 21.1 20.8 0.4 1.9 17.1 Total revenue 248.4 335.7 –87.3 –26.0 346.9 Operating expenses1) –209.7 –256.6 46.9 18.3 –278.0 EBITDA1) 38.7 79.0 –40.4 –51.1 68.9 Depreciation and amortisation –28.9 –27.2 –1.7 –6.4 –26.0 Results from operating activities (EBIT)1) 9.8 51.9 –42.1 –81.2 42.9 Financial results1) 12.1 11.7 0.4 3.3 11.8 Profit before income tax 21.8 63.5 –41.7 –65.6 54.8 Total assets 1,468.9 1,472.4 –3.6 –0.2 1,450.1 Total liabilities 1,059.3 1,054.0 5.3 0.5 1,077.6 Investments2) 12.0 22.7 –10.7 –47.1 48.3

1) The prior year figure was adjusted (see consolidated notes, note 2. Reporting in accordance with IFRS, page 108) 2) In intangible assets and property, plant and equipment

The wastewater purification plant project in Budva, Obersiebenbrunn in the eastern region of Lower Austria, which Montenegro, is proceeding as planned. The enlarged wastewater will reduce the hardness of the water by natural means and thereby purification plant in Šentjernej, Slovenia, opened in August 2013, improve its quality. These facilities should be completed by the and one of the largest wastewater purification plants in Europe end of 2014 and will benefit all communities in the Marchfeld started operations in Warsaw, Poland, during March 2013. The and Eastern Weinviertel regions that are serviced by evn wasser. start-up of the Warsaw plant will allow for the purification of evn wasser currently supplies approximately 60,000 residents in all wastewater from this city for the first time. At the end of these regions and in total now supplies drinking water, directly July 2013, EVN received a contract to modernise and expand and indirectly, to over 500,000 customers in Lower Austria. the Kujavy wastewater purification plant in Krakow, which will have sufficient capacity to purify the waste water of roughly Outlook 100,000 residents. The EVN Group expects stable development in the international project business of the Environmental Services Segment The realisation of the environmental services projects in during 2013/14. Earnings in the area of domestic water sup- Moscow is proving to be difficult. The commercial operations of plies should increase slightly due to the planned takeover of the sodium hypochlorite plant, which was completed on schedule further local networks. The earnings contribution from the waste and as agreed, has been delayed so far by the city of Moscow utilisation business in Austria should remain stable. Earnings in and the building permit for the waste utilisation plant has still the Environmental Services Segment for 2013/14 are forecasted not been issued. Discussions are currently in progress with the to reflect the previous year in 2012/13, whereby the develop- Moscow city government over the subsequent amendment of ment of the activities in Moscow will have a significant influence the structure for these two projects. on the earnings of this segment.

In the area of drinking water supplies for Lower Austria, EVN took over the management and operation of the drinking water pipeline network for the municipality of Angern in January 2013 and for Niederleis in September 2013. The pumping plant in Oberzögersdorf, Lower Austria, also started operations in March 2013, after a construction period of four months. This new plant will safeguard drinking water supplies for 50,000 residents in the Lower Austrian districts of Korneuburg and Mistelbach, even when consumption is higher during the summer months. EVN will also build two natural filter plants at Drösing and

100 EVN Full Report 2012/13 side EVN’s core businesswhichgenerallyprovideservices. internal ment alsoincludescorporatefunctionsaswellcompaniesout- AG.Thisseg- (through BurgenlandHoldingAG)andVerbund cally coverstheinvestmentsinRAG,EnergieBurgenlandAG fell byEUR12.5m,or12.4%,to88.7m,abovealldue result ofthesedevelopments. declined by EUR 0.5m,or5.8%, year-on-year toEUR–9.6m as a operating expenses.Resultsfrom operatingactivities(EBIT) or 3.6%,belowtheprevious yearresulted from anincrease in Segment felltoEUR–7.7min2012/13.Thisdeclineof0.3m, recorded bytheStrategicInvestmentsandOther Business Investments Total liabilities Internal revenue Total assets Depreciation andamortisation Operating expenses he prior year figure wasadjusted(seeconsolidated notes,note2.Reporting accordancehe prioryearfigure withIFRS, page108) 2) 1) Profit before incometax Financial results Results from operatingactivities(EBIT) EBITDA Total revenue External revenue and OtherBusiness Key indicators–StrategicInvestments

In intangibleassetsand pr T Highlights 2012/13 The StrategicInvestmentsandOtherBusinessSegmentbasi- Other Business Strategic Investmentsand Financial results, which are a key indicator for this segment, Financial results andprofit before tax Despite anincrease ofEUR2.2m,or3.3%,inrevenue, EBITDA Revenue, EBITDAandEBITdevelopment eased earnings contributionbyRAG (EUR –29.6m) Negative earningscontributionbyWEEVinvestment Burgenland AG (EUR9.7m) Higher earningscontributionbyEner Incr 1) 2)

1) 1) operty, plant andequipment 1) Segment reporting

gie

— Environmental Services,StrategicInvestmentsandOtherBusiness

EURm

on-year increase contributionby ofEUR 7.8m in theearnings of theseshares belowtheircost.Thiswascontrastedbyayear- by WEEV to reflect a significant and lasting decline in the price It resulted from animpairmentlosstotheVerbund shares held Beteiligungs GmbH was the main reason for this development. contributionofEUR29.6mfromThe negativeearnings WEEV contributionsfromlower earnings equityaccountedinvestees. with thepossiblenegativedevelopmentofVerbund shares. for thissegment.However, acertaindegree ofriskisconnected Turkish market.Thatwouldleadtoanimprovement inearnings dividend maybepossiblefollowingthesuccessfulexitfrom the ments. Verbund hasindicatedthatthedistributionofaspecial Business Segmentar which isEUR 13.0m,or14.2%,belowtheprevious year. contribution from RAG.Profit before taxtotalledEUR79.1m, Energie BurgenlandandaEUR6.6mincr 2012/13 ,4. ,2. 60121,262.7 1.2 16.0 1,326.8 1,342.7 ,8. ,1. 6. . 2,761.3 6.2 168.4 2,718.8 2,887.2 Results recorded by the Strategic Investments and Other Outlook 7. –32–. 34–69.6 –3.4 –2.5 –73.2 –75.7 919. 1. 1. 86.2 94.4 –14.2 –12.4 –13.0 –12.5 92.1 101.2 79.1 88.7 65.8 68.0 96–. 05–. –8.2 –5.8 –0.5 –9.1 –9.6 77–. 03–. –6.2 –3.6 –0.3 –7.4 –7.7 4763.5 64.7 19–. 03–52–2.0 –15.2 –0.3 –1.7 –1.9 3.3 3.5 2011/12 2.3 . 12–25.6 –1.2 4.7 e influencedbytheincomefrom invest- oia in% nominal EVN Full Report2012/13 . . 63.4 3.3 2.2 . . 59.4 2.0 1.2 . 40.3 0.9 Change ease in the earnings ease intheearnings 2010/11 4.0 2.2 101

Segment reporting Financial results – Strategic Investments Change and Other Business EURm 2012/13 2011/12 nominal in % 2010/11 Income from investments RAG1) 80.1 73.5 6.6 9.0 60.4 Energie Burgenland AG2) 9.7 1.9 7.8 – 9.4 Other companies –29.6 0.6 –30.2 – 0.8 Income from investments in equity accounted investees 60.3 76.0 –15.7 –20.7 70.6 Dividend payments 32.5 30.7 1.8 5.9 26.5 Verbund AG 24.1 22.1 2.0 9.1 22.1 Other companies 8.4 8.6 –0.2 –1.9 4.5 Gain from other investments 32.5 30.7 1.8 5.9 26.5 Total income from investments 92.8 106.7 –13.9 –13.0 97.1 Total interest results3) –0.3 –2.9 2.6 88.9 1.2 Total other financial results –3.8 –2.6 –1.2 –45.9 –3.8 Financial results3) 88.7 101.2 –12.5 –12.4 94.4

1) Indirectly held through RBG 2) A stake of 49.0% in Energie Burgenland AG (formerly BEWAG) is indirectly held through Burgenland Holding Aktiengesellschaft. 3) The prior year figure was adjusted (see consolidated notes, note 2. Reporting in accordance with IFRS, page 108)

102 EVN Full Report 2012/13 statements for2012/13 financial Consolidated Auditor’s report EVN’s investments Consolidated notes Consolidated statementofcashflows Consolidated statementofchangesinequity Consolidated statementoffinancialposition Consolidated statementofcomprehensive income Consolidated statementofoperations According FinancialReportingStandards toInternational 5 Otherinformation 166 Segmentreporting 155 position Notestotheconsolidatedstatementoffinancial 151 Notestotheconsolidatedstatementofoperations 134 Accounting policies 128 Basisofconsolidation 114 Basisofpreparation 111 108 107 106 105 104 104 7 172 167 equity accountedinvestees informationonjointventuresFinancial andinvestmentsin EVN Full Report2012/13 103

Financial statements Consolidated statement of operations

EURm Note 2012/13 2011/12 Revenue 25 2,755.0 2,846.5 Other operating income 26 95.5 81.3 Cost of materials and services 27 –1,908.4 –1,980.5 Personnel expenses1) 28 –307.1 –312.6 Depreciation and amortisation 29 –239.1 –251.3 Other operating expenses 30 –177.4 –160.1 Results from operating activities (EBIT)1) 218.5 223.2 Share of results of equity accounted investees 10.0 87.0 Results from other investments 26.8 24.3 Interest income 28.4 30.9 Interest expense1) –100.1 –104.4 Other financial results –3.2 –1.3 Financial results1) 31 –38.1 36.5 Profit before income tax 180.3 259.7 Income tax expense 32 –22.1 –25.9 Profit for the period 158.2 233.8 thereof profit attributable to EVN AG shareholders (Group net profit) 114.7 194.9 thereof profit attributable to non-controlling interests 43.5 38.9 Earnings per share in EUR 2) 33 0.64 1.09 Dividend per share in EUR 0.423) 0.42

1) The figure for the prior year was adjusted (EBITDA/EBIT EUR +16.5m; financial results EUR –16.5m). For details refer to 2. Reporting according to IFRS, page 108. 2) There is no difference between basic and diluted earnings per share. 3) Proposal to the Annual General Meeting

Consolidated statement of comprehensive income

EURm Note 2012/13 2011/12 Profit for the period 158.2 233.8 Other comprehensive income from Items that will not be reclassified to profit or loss –31.0 –30.0 Remeasurements IAS 19 44 –23.7 –40.2 Investments in equity accounted investees 44 –13.3 – Thereon apportionable income tax expense 44 5.9 10.2 Items that may be reclassified to profit or loss 47.7 –188.9 Currency translation differences 5 –8.7 8.9 Available for sale financial instruments 44 24.9 –223.5 Cash flow hedges 44 –0.4 –5.3 Investments in equity accounted investees 44 38.2 –26.1 Thereon apportionable income tax expense 44 –6.2 57.1 Total other comprehensive income after tax 16.7 –218.9 Comprehensive income for the period 174.9 14.9 Income attributable to EVN AG shareholders 141.9 –24.0 Income attributable to non-controlling interests 33.0 38.9

104 EVN Full Report 2012/13 Total equityandliabilities Other current liabilities Current provisions Trade payables Taxes payable Current loansandborrowings Current liabilities Deferred taxliabilities Non-current loans andborrowings Non-current liabilities Issued capitalandreserves attributabletoshareholders ofEVNAG Equity Equity andliabilities Total assets Cash andcashequivalents Securities Trade andotherreceivables Inventories Current assets Other non-current assets Deferred taxassets Other investments Investments inequityaccountedinvestees Property, plantandequipment Intangible assets Non-current assets Assets EURm Other non-current liabilities Deferred incomefrom networksubsidies Non-current provisions Non-controlling interests Consolidated statementoffinancialposition 1) 1) Consolidated statementofcomprehensive income,Consolidatedstatementoffinancialposition Consolidatedfinancialstatements2012/13 Note 1 45 41– — Consolidatedstatementofoperations, 56 55 54 53 52 47 58 40 39 38 37 48 36 36 35 34 51 50 49 48 46 30.09.2013 EVN Full Report2012/13 1,206.7 6,125.1 7,102.1 7,102.1 2,829.0 3,066.5 1,571.4 1,047.9 3,094.3 2,824.8 977.0 184.9 461.9 390.3 259.2 565.5 108.4 861.1 694.8 397.6 503.5 591.0 111.5 241.7 92.7 76.8 43.9 29.4 51.5 30.09.2012 6,053.9 6,863.2 6,863.2 3,062.6 3,013.7 1,933.3 1,048.7 3,009.2 2,768.3 786.9 809.3 181.3 384.4 162.1 537.6 106.1 898.3 668.7 403.1 469.5 490.7 119.2 245.4 84.9 87.0 49.4 25.9 49.9 3.4 105

Financial statements Consolidated statement of changes in equity

Issued capital and Share premium Currency reserves of Non- and capital Retained Valuation translation Treasury EVN AG controlling EURm Share capital reserves earnings reserve reserve shares shareholders interests Total Balance on 30.09.2011 330.0 253.5 1,928.1 304.0 –5.5 –6.0 2,804.1 361.7 3,165.8 Comprehensive income – – 194.9 –227.8 8.9 – –24.0 38.9 14.9 Acquisition of interest in fully consolidated companies – – 69.6 – – – 69.6 –118.9 –49.3 Capital increase – – – – – – – 3.0 3.0 Dividends 2010/11 – – –73.6 – – – –73.6 –38.4 –112.0 Change in own shares – –0.2 – – – –4.8 –5.0 – –5.0 Changes in the scope of consolidation/Other items – – –2.9 – – – –2.9 –0.9 –3.8 Balance on 30.09.2012 330.0 253.3 2,116.2 76.2 3.4 –10.7 2,768.3 245.4 3,013.7 Comprehensive income – – 114.7 36.0 –8.7 – 141.9 33.0 174.9 Dividends 2011/12 – – –75.0 – – – –75.0 –36.7 –111.7 Change in own shares – –0.1 – – – –10.1 –10.2 – –10.2 Other items – – –0.2 – – – –0.2 – –0.2 Balance on 30.09.2013 330.0 253.1 2,155.7 112.1 –5.3 –20.8 2,824.8 241.7 3,066.5

Note 41 42 43 44 5 45 46

106 EVN Full Report 2012/13 Cash andcashequivalentsattheendofperiod Cash andcashequivalentsatthebeginningofperiod – – + – + + – – – – + – – – + + + + – + + + – – –/ + l amount *) Net changeincashandequivalents Net changeincashandequivalents Net changeincashandequivalents Net cashflowfrom financingactivities Net cashflowfrom investingactivities Net cashflowfrom operatingactivities Gross cashflow Profit before incometax EURm +

+ Gains/ Gains/ Decr Incr Repurchase/ Dividends paidtonon-contr Dividends paidtoEVNA P P A A A Net pr A Pr Pr Pr Pr Income taxpaid Incr Incr Decr Release ofdeferr Non-cash shar Depr Incr Smal Other non-cash financial results Othernon-cashfinancial ayments foracquisitionofshares consolidated companies infully incapitalstock ayments ofnominalcapitalbynon-controlling interests/increase Consolidated statementofcashflows cquisition ofcurrent securities assetsandothernon-current assets cquisition offinancial cquisition ofintangibleassetsandproperty, plantandequipment netofcashacquired cquisition ofsubsidiaries, oceeds from the disposal ofcurrent securities oceeds from thedisposal assetsandothernon-current assets offinancial oceeds from thedisposal oceeds from network subsidies ofintangibleassetsandproperty,oceeds from thedisposal plantandequipment ease in financial liabilities ease infinancial ease/– ease/– ease/– decrease in non-current provisions ease/– ease in financial liabilities ease infinancial increase ininventoriesandreceivables ease/– eciation, amortisation/– revaluation ofintangibleassetsandproperty, plantandequipment eciation, amortisation/– oceeds from business disposals oceeds from business disposals + + losses on the disposal ofintangibleassetsandproperty, lossesonthedisposal plantandequipment lossesfrom foreign exchangetranslations

decr decr + salesofownshares e of profit ofequityaccountedinvestees e ofprofit ease intrade payables andotherliabilities ease incurrent provisions ed income from network subsidies ed incomefrom networksubsidies G shareholders olling interestsolling Consolidated financialstatements2012/13 — Consolidatedstatementofchangesinequity, Consolidated statementofcashflows Note 58 58 36 29 58 43 58 26 49 4 EVN Full Report2012/13 2012/13 305–333.9 –380.5 102–343.8 –110.2 –390.1 –232.8 –309.6 –110.4 –166.1 –322.1 553.6 180.3 561.7 9. –105.6 –90.5 224.8 134.1 141.6 239.1 –36.7 –75.0 –39.8 –10.2 –28.3 –27.9 90.7 90.7 93.9 70.1 70.8 73.8 56.5 76.6 0.0 3.4 7.9 0.1 3.3 – – – – *) 2011/12 480.3 259.7 461.0 134.1 112.6 400.6 251.3 443.9 –38.4 –73.6 –35.9 –28.9 –49.3 –53.5 21.5 21.5 10.4 77.2 66.6 57.6 –0.4 –4.2 –3.2 –1.9 7.1 5.5 3.7 0.1 3.0 0.4 107

Financial statements Consolidated notes

Basis of preparation

1. General EVN AG, as the parent company of the EVN Group (EVN), is a leading listed Austrian energy and environmental services provider. Its headquarters are located in A-2344 Maria Enzersdorf, Austria. In addition to serving its domestic market in the province of Lower Austria, EVN has successfully established a position in the Bulgarian and Macedonian energy industry. EVN is also active in the area of environmental services through subsidiaries that provide customers in 17 countries with water supply, wastewater treatment and thermal waste incineration services.

The consolidated financial statements are prepared as of the balance sheet date of EVN AG. The financial year of EVN AG covers the period from 1 October to 30 September.

The consolidated financial statements are prepared on the basis of uniform accounting policies. In cases where the balance sheet date of a consolidated company differs from the balance sheet date of EVN AG, interim financial statements are prepared as of 30 September. Independent chartered accountants audited the interim financial statements of all consolidated companies subject to a statutory or voluntarily audit to ensure the application of uniform accounting policies in accordance with International Financial Reporting Standards (IFRSs).

Certain items on the consolidated statement of financial position and the consolidated statement of operations are summarised to achieve a more understandable and clearly structured presentation. These positions are presented individually in the notes and explained according to the principle of materiality. In order to improve clarity and comparability, the amounts in the consolidated financial statements are generally shown in millions of euros (EURm), unless otherwise noted. Immaterial mathematical differences may arise from the rounding of individual items or percentage rates.

The consolidated statement of operations is prepared in accordance with the nature of expense method.

2. Reporting in accordance with IFRS Pursuant to § 245a of the Austrian Commercial Code, the consolidated financial statements were prepared in accordance with the current guidelines set forth in the IFRSs issued by the International Accounting Standards Board (IASB) as well as the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) that were applicable as of the balance sheet date and had been adopted by the European Union (EU).

The following standards and interpretations were applied for the first time in the 2012/13 financial year:

2. Standards and interpretations applied for the first time Effective1) New Standards and Interpretations –– – Revised Standards and Interpretations IAS 1 Presentation of Financial Statements – Presentation of Items of Other Comprehensive Income 01.07.2012 IAS 12 Income Taxes: Deferred Tax – Recovery of Underlying Assets 31.12.2012 IFRS 1 First-time Adoption of IFRS – Severe Hyperinflation 31.12.2012

1) In accordance with the Official Journal of the EU, these standards are applicable to financial years beginning on or after the effective date.

The changes to IAS 1 are intended to improve the clarity of presentation for the increasing number of items reported under other comprehensive income. A differentiation is now made between the items of other comprehensive income that will be reclassified subsequently to profit or loss (so-called “recycling“) and items that will never be reclassified. This change led to the restructuring of the statement of comprehensive income beginning with the first quarter of 2012/13.

The initial mandatory application of revised standards and interpretations had no impact on these consolidated financial statements.

108 EVN Full Report 2012/13 changes forthe companiesincludedthrough fullconsolidation.However, therevised IFRS10couldleadtoachange forcompanies standard are currently underevaluation, butthenewdefinition ofcontrol provided byIFRS10isnotexpectedtoresult inanymajor disclosure requirements forinterests inothercompaniesasinglestandard. Theeffects oftheapplicationthisnewconsolidation companies thatmeetthedefinition ofajointventure must beaccountedforbyapplyingtheequitymethod.IFRS12regulates the created by the arrangement, a differentiation is made between joint ventures and joint operations. Under IFRS 11, jointly controlled IAS 31anddistinguishesbetween twoformsofjointarrangements:dependingontherightsand obligationsofthecontrolling parties “control“. IAS27nowonlydefinestherulesforpreparation ofIFRSindividual(“separate”) financialstatements.IFRS11replaces rules forthepreparation and presentation ofconsolidatedfinancialstatements and provides a new, standardised definitionof dated financialstatementsandthenotes. dance with the Official JournaloftheEU,dance withtheOfficial thesestandardsyearsbeginningonor aftertheeffectivedate. are applicabletofinancial –2011 AnnualImprovements 2009 1) Several Instruments:DisclosuresAssetsLiabilities Financial –Offsettingand AmendmentstoTransition Guidance IFRS 10–12 AdoptionofIFRS–GovernmentLoans First-time IFRS 7 Instruments:PresentationAssetsLiabilities Financial –Offsettingand IFRS 1 IAS 32 ConsolidatedandSeparateStatements Financial –revised IAS 27,SeparateStatements Financial IAS 27 Stripping CostsintheProduction PhaseofaSurfaceMine Revised Standards andInterpretations Fair Value Measurement IFRIC 20 Disclosure ofInterests inOtherEntities IFRS 13 JointArrangements IFRS 12 Statements ConsolidatedFinancial IFRS 11 IFRS 10 New Standards andInterpretations 2. Standards andinterpretations notyeteffective the EUpriortopreparation oftheconsolidatedfinancialstatements. accounting policy. pershareexpenses). Earnings were notaffected bythis change. amount inpersonnelexpenses(2011/12:increase ofEUR16.5mininterest expenseandacomparablereduction inpersonnel ber 2011. - with keybenchmarkcompanies.Inaccordance withIAS8,thenewaccountingpolicywasappliedretrospectively asof1 Octo requirements ofIAS1andtheIFRSFramework,provides abetterpresentationpositionandimproves oftheearnings comparability accounting policycalledforthereporting ofthisinterest costunderpersonnelexpenses.Thischangeinaccountingpolicyreflects the provisions forserviceanniversarybonuseshasbeenreported underfinancialresults sincethefirstquarterof2012/13.Theprevious A 8andJointVentures IAS 28

In accor IFRS 10,11and12formthenewconsolidationpackage thatwasreleased bytheIASBinMay2011.IFRS10includes EVN regularly monitors and analyses the effects of the revised standards and interpretations on the presentation of the consoli- The followingstandards andinterpretations were issuedbytheIASB,adoptedEUandpublishedinOfficialof Journal theretrospectiveThe footnotesconcerning adjustmentofprioryeardataare related totheabove-mentionedchangeinan This changeinaccountingpolicyledtoanincrease ofEUR15.5mininterest expensefor2012/13andadecrease ofthesame The interest component of the provisions for pensions and similar obligations, the provisions for severance payments and the The followingaccountingpolicieswere changedduringthereporting year: Investments inAssociates –revised IAS 29,Investments inAssociates Consolidated notes EVN Full Report2012/13 — Basisofpreparation Effective 01.01.2013 01.01.2013 01.01.2013 01.01.2013 01.01.2014 01.01.2014 01.01.2013 01.01.2013 01.01.2014 01.01.2014 01.01.2014 01.01.2014 109 1) 1) 1) 1) 1) 1) 1) 1) 1) 1) 1) 1)

Financial statements currently included through proportionate consolidation through the possible full consolidation of EVN KG. This possible change in the consolidation method would not have any effect on the asset, financial or earnings position of the EVN Group because EVN KG is currently included at a proportionate share of 100%. In contrast, the future inclusion of the EnergieAllianz Group at equity would reduce the consolidated statement of financial position and the consolidated statement of operations, and thereby lead to the reclassification of earnings from results from operating activities to financial results. The classification of STEAG-EVN Walsum as a joint operation or joint venture (IFRS 11) is currently under evaluation, whereby the classification as a joint operation could have a significant effect on the statement of financial position.

IFRS 13 was published by the IASB in May 2011 and is the result of a joint project by the IASB and FASB to develop a standardised concept for the measurement of fair value. The measurement of fair value is based on a hypothetical transaction, whereby the sale of an asset or the transfer of a liability in the principal market for this asset or liability is assumed. If the principal market cannot be identified, measurement must take place in the most advantageous market for the asset or liability. IFRS 13 defines a three-level “fair value hierarchy“, which gives the level 1 input factors the highest priority for the measurement of fair value. In connection with the transition to IFRS 13, the company’s own credit risk must be consistently included in the fair value measurement of derivatives. IFRS 13 also standardises and expands the disclosures required for the notes. The effects of the application of IFRS 13 are currently under evaluation, and no statements can be made at this time concerning the impact on the asset, financial or earnings position of the EVN Group.

The following standards and interpretations were issued by the IASB, but not yet adopted by the EU prior to the preparation of the consolidated financial statements.

2. Standards and interpretations not yet effective Effective New Standards and Interpretations IFRS 9 Financial Instruments to be determined1) IFRIC 21 Levies 01.01.20142) Revised Standards and Interpretations IAS 36 Impairment of Assets – Recoverable Amount Disclosures for Non-Financial Assets 01.01.20142) IAS 39 Financial Instruments – Novation of Derivatives and Continuation of Hedge Accounting 01.01.20142) Several Investment Entities – Amendments to IFRS 10, IFRS 12 and IAS 27 01.01.20142)

1) In its meeting on 24 July 2013, the IASB passed a preliminary resolution approving the indefinite postponement of the mandatory application of IFRS 9. Prior to this decision, the standard called for application as of 1 January 2015. 2) In accordance with the Official Journal of the EU, these standards are applicable to financial years beginning on or after the effective date.

The new IFRS 9, which is part of the project to replace IAS 39, calls for the partial exchange of the previous measurement categories. This will have an influence on the classification and measurement of financial assets in EVN’s consolidated financial statements. However, the effects cannot be estimated reliably at this point in time because of the on-going revision of the new standard.

EVN does not expect the future initial application of the other new standards and interpretations to have a material effect on its asset, financial or earnings position.

110 EVN Full Report 2012/13 EnergieAllianz servesthegeneral partnerofEVN due totheirimmaterialinfluenceonEVN’s position. asset,financialandearnings ber 2013 (previous year: 26 domestic and 36 foreign companies). Atotal of 31 affiliates (previous year: 33) were not consolidated companies (includingtheparent companyEVN AG) were fully consolidatedinthefinancialstatementsasof30Septem- terial. Theconsolidationprocedure forprofit orlossincludestheeffects ofincometaxesaswelltherecognition ofdeferred taxes. proportional share revenue ofequity,external andannualprofit orlossinrelation totherespective group totals. responds toamortisedcost. The materialityof an investment isassessedon the basis ofthebalancesheet total, non-current assets, or lossisconsidered tobeimmaterial,eitherindividuallyorintotal.Thesecompaniesare reported atfairvalue,whichgenerallycor are basedonuniform accountingpolicies. above are relevant forbothcases.Theannualfinancial statementsofthecompaniesincludedonaproportionate basisorat equity directly orindirectly exertsignificant influence(i.e.associates)are includedbyapplyingtheequitymethod.Theprinciplesoutlined without recognition through profit orloss. during the subsequent consolidation. A change in the investment in afullyconsolidated company is accounted for directly in equity The differences betweenfairvalueandthecarryingamountare carriedforward inaccordance withtherelated assetsandliabilities of theacquired company’s identifiable assetsandliabilities(includingcontingentliabilities)measurement oftheacquisitioncost. goodwill andallocatedtotherelevant segment.Negativedifferences are recognised inprofit orlossafterarepeated measurement seller formarketopportunitiesordevelopmentalpotentialthatcannotbeindividuallyidentified are recognised inlocalcurrency as may notbecreated aspartofthepurchase priceallocation. Anyremaining positivedifferences whichrepresent compensationtothe goodwill if theycanbeseparatedfrom theacquired companyorarisefrom contractualorotherlegalrights.Restructuringprovisions at theproportional share ofnetassets(excludingthe proportional share ofgoodwill).Intangible assets are recognised separatelyfrom nised attheirfullfairvalue,irrespective ofanyexistingnon-controlling interests. Non-controlling interests insubsidiariesare carried initially consolidatedontheacquisitiondateorattimeEVNgainscontrol andare deconsolidatedwhencontrol ends. fully consolidatedif control overtheirfinancialandoperatingpoliciesisbarred byspecialcontractualarrangements.Companiesare if EVNisrequired ownsmore than50.0%oftheshares tocarrymostoftherisks.Incontrast,companiesinwhichEVN AG are not disposition overandistheprimarybeneficiaryofanyeconomicbenefitsarisingfrom thebusinessoperationsofthesecompaniesor are fullyconsolidated.ThisisusuallythecasewhenEVN’s votingrightsexceed50.0%,butmayalsoapplyif EVNhasthepowerof assumed liabilities. aries) isalsoincluded onaproportionate basis at45.0%according to thestakeheldinEnergieAllianz. special contractual rules.Inaccordance with thesespecialcontractualrules, theEnergieAllianzGroup (EnergieAllianzanditssubsidi- isconsolidatedat100.0%inlinewiththeinvestment andbasedonthe statements through proportionate consolidation.EVN KG this company is included in the consolidated financial between the EnergieAllianz shareholders for the management of EVN KG, EVN AG is the sole limited partner of EVN KG and, as such, participates to 100.0% in the assets and profit or loss of EVN KG. and,assuch,participatesto100.0%intheassetsandprofit orlossofEVN KG. isthesolelimitedpartnerof EVN KG EVN AG The scope of consolidation is determined in accordance with the requirements of IAS 27. Accordingly, 26 domestic and 37foreign 4. Scopeofconsolidation Intragroup receivables, liabilities,incomeandexpensesaswellintragroup profits andlossesare eliminatedunlesstheyare imma- Subsidiaries, jointventures andassociatesare notconsolidated if theirinfluenceonEVN’s assets,liabilities,cashflowsandprofit The EnergieAllianzenergydistributioncompaniesare consolidatedonaproportionate basis,whilecompaniesinwhichEVNcan In accordance withIFRS3,assetsandliabilities(includingcontingentliabilities)obtainedthrough businesscombinationsare recog- All significant companieswhosefinancialandoperatingpoliciesare directly (i.e.subsidiaries) orindirectly controlled byEVN AG The consolidationiscarriedoutbyoffsetting theconsiderationtransferred againstthefairvalueofacquired assetsand 3. Consolidationmethods Basis ofconsolidation KG, butdoesnotholdaninvestment inthiscompany.Basedonagreements Consolidated notes — Basisofpreparation, Basisofconsolidation EVN Full Report2012/13 111 -

Financial statements RBG, a fully consolidated company in which EVN AG has an unchanged interest of 50.03%, holds a 100.0% stake in RAG. RAG is consolidated at equity because contractual agreements prevent EVN from exercising control.

EconGas, in which EVN AG has an unchanged interest of 16.51%, is included at equity due to special contractual arrangements that allow EVN to exercise significant influence.

VERBUND Innkraftwerke Deutschland GmbH, in which EVN AG has an unchanged interest of 13.00%, is included at equity due to special contractual arrangements that allow EVN to exercise significant influence.

An overview of the companies included in the consolidated financial statements is provided under EVN’s investments, starting on page 167. The scope of consolidation (including EVN AG as the parent company) developed as follows during the reporting year:

Full Proportionate Equity 4. Changes in the scope of consolidation consolidation consolidation method Total 30.09.2011 63 5 16 84 Start-ups and first consolidation 5 – 4 9 Change of consolidation method – – – – Mergers –2 – –1 –3 Deconsolidation –4 – – –4 30.09.2012 62 5 19 86 Start-ups and first consolidation 2 – – 2 Mergers –1 – – –1 Deconsolidation – – –1 –1 30.09.2013 63 5 18 86 thereof foreign companies 37 – 5 42

In April 2012, EVN was awarded a contract for the planning, construction, financing and operation of a drinking water preparation plant for the municipality of Zrenjanin, Serbia. WTE Projektgesellschaft Trinkwasseranlage d.o.o. was founded for this purpose in July 2012 and included through full consolidation for the first time in the first quarter of 2012/13. OOO EVN Umwelt was also added to the scope of fully consolidated companies in the first quarter of 2012/13. This company provides management services to the other EVN companies in Russia.

In August 2013, EVN Finance Service B.V. was sold by EVN Finanzmanagement und Vermietungs-GmbH to EVN Projektmanage- ment GmbH. EVN Finance Service B.V. was then integrated into EVN Projektmanagement GmbH through an upstream merger.

In March 2013, EVN and Statkraft A.S. concluded an agreement for the sale of EVN‘s 50% stake in Devoll Hydropower ShA to Statkraft A.S. The closing took place on 7 May 2013 and Devoll Hydropower ShA, which was previously included at equity, was deconsolidated as of the same date.

No business combinations as defined in IFRS 3 took place during the reporting period. The following table shows the effects at fair value of the business combinations and resulting initial consolidations that took place during 2011/12:

112 EVN Full Report 2012/13 date. Whenaforeign companyisdeconsolidated,anyrelated currency differences are recognised toprofit orloss. This goodwillissubsequentlyallocatedtotheacquired companyandtranslatedattheexchangerateineffect onthebalancesheet tables. exchange ratestotranslatechangesduringthefinancialyearare reported separatelyundercurrency translationdifferences inall between thebalancesheetdateforreporting yearandtheprevious yearaswelldifferences arisingfrom theuseofaverage (previous year:increase ofEUR8.9m). or loss.Currency translationdifferences directly recognised inequityresulted inadecrease ofEUR8.7minequityduring2012/13 ferences from long-termGroup loansare recorded underthecurrency translationreserve inequitywithoutrecognition through profit the balancesheetdateandanyincomeexpensesare convertedattheaverageannualrate.Unrealised currency translationdif- under whichtheassetsandliabilitiesofcompaniesnotreporting ineuros are convertedbyapplyingtheaverageexchangerateon lated intoeuros forinclusionintheconsolidatedfinancialstatements.Thistranslationisbasedonfunctionalcurrency method, rate onthebalancesheetdate.Anyresulting foreign currency gainsorlossesare recognised toprofit orloss. relevant transaction. Monetary assets and liabilitiesdenominatedin a foreign currency are also translated at the average exchange verage onthelastdayofeachmonth 2) 1) lek Albanian Currency 5. Foreign currency translation Current liabilities Non-current liabilities Equity Current assets Non-current assets EURm 4. Impactofbusinesscombinations Croatian kuna Bulgarian lev Macedonian denar Polish zloty Russian ruble Serbian denar

T A The followingkeyexchangerateswere usedforforeign currency translation: Goodwill resulting from theacquisitionofforeign subsidiariesisrecorded attheexchangerateineffect ontheacquisitiondate. Additions anddisposalsare reported attheapplicable averageexchangeratesinalltables.Changesthe In accordance withIAS21,theannualfinancialstatementsofGroup companiesthatare prepared inaforeign currency are trans- All Group companiesrecord theirforeign currency businesstransactions attheaverageexchangerateineffect onthedateof 5. Foreign currency translation he exchangerate wasdeterminedbyBulgarianlaw. 2)

on thebalancesheetdate Exchange rate 139.98000 114.26060 61.50040 43.82400 1.95583 7.61530 4.22880 2012/13 Average 140.06538 112.96633 61.55754 41.42608 1.95583 7.54795 4.18805 1) Consolidated notes on thebalancesheetdate Exchange rate 138.29000 115.03200 61.50080 40.14000 1.95583 7.44680 4.10380 EVN Full Report2012/13 2012/13 — Basisofconsolidation 2011/12 2011/12 – – – – – – – Average 2011/12 139.42615 110.26393 61.52300 40.68757 1.95583 7.51739 4.26230 1) 19.0 19.0 14.0 10.3 1.4 3.6 8.7 113

Financial statements Accounting policies

6. Intangible assets The recognition of business combinations as defined in IFRS 3 may result in differences between the consideration transferred and the (proportional) revalued share of equity acquired. If the difference is negative, the acquisition cost and the purchase price allocation must be reviewed. If the negative difference is reconfirmed, it is recognised to profit or loss. Positive differences result in goodwill (for general information on the treatment and impairment of goodwill, see note 3. Consolidation methods, and note 21. Procedures and effects of impairment tests).

Acquired intangible assets are recognised at acquisition cost less straight-line amortisation and any impairment losses, unless their useful life is classified as indefinite. Assets with a determinable limited useful life are amortised on the basis of that expected useful life, which equals three to eight years for software and three to 40 years for rights. Customer relationships capitalised in connection with a business combination, which have a determinable useful life because of potential market liberalisation, are amortised on a straight-line basis over five to 15 years. The expected useful lives and amortisation curves are determined by estimating the timing and distribution of cash inflows from the corresponding intangible assets over time. Intangible assets with an indefinite useful life are measured at cost and tested annually for impairment (see note 21. Procedures and effects of impairment tests), but this category of assets is of minor importance at EVN.

Internally generated intangible assets must meet the requirements of IAS 38 in order to be capitalised. This standard distinguishes between research and development expenses. As in the previous year, no development expenses were capitalised in 2012/13 because the recognition criteria were not met.

Service concessions as defined IFRIC 12 are classified as intangible assets. Income and expenses are recognised at the fair value of the consideration received in accordance with the percentage-of-completion method. The stage of completion was calculated in line with the cost-to-cost method.

7. Property, plant and equipment Property, plant and equipment are carried at acquisition or production cost less straight-line depreciation and impairment losses. The acquisition or production cost also includes the estimated expenses for demolition and disposal if there is an obligation to decommission or demolish the plant and equipment or to restore property at the end of the asset’s useful life. The present value of the estimated demolition and/or disposal costs is capitalised along with the acquisition or production cost and also recognised as a liability (provision). Production costs for internally generated fixed assets include appropriate material and manufacturing overheads in addition to direct material and labour costs.

On-going maintenance and repairs to property, plant and equipment are expensed, provided this work does not change the nature of the asset or lead to additional future benefits. If these measures enhance the value of the respective asset, the related expenses must be retroactively capitalised as part of the acquisition or production cost.

If the construction of property, plant and equipment continues over an extended period of time, the assets are classified as “qualifying assets”. The borrowing costs incurred during the construction period are then capitalised as a part of the production cost in accordance with IAS 23. In keeping with EVN’s accounting policies, a project gives rise to a qualifying asset only if construction takes at least twelve months.

Property, plant and equipment are depreciated from the time they are available for use. Depreciation for property, plant and equipment subject to wear and tear is calculated on a straight-line basis over the expected useful life of the relevant asset or its components. The expected economic and technical life is evaluated at each balance sheet date and adjusted if necessary.

Straight-line depreciation is based on the following useful lives, which are uniform throughout the Group:

114 EVN Full Report 2012/13 instruments byclasstogetherwiththecorresponding measurement categories: – ment inanothercompany. accounted investee(seenote21.Procedures andeffects ofimpairmenttestsand in accordance withIAS36.Confirmationofimpairmentleadstotherecognitionequity ofanimpairmentlosstotheearnings signs of impairment. If there are any such indications, the investment in the equity accounted investee must be tested for impairment accordance with IAS 36. An assessment is made as of each balance sheet date to determine whether there are or external internal tion inaccordance withIFRS3andisneitherreported separatelyinaccordance withIAS28nortestedannuallyforimpairmentin business combinationthatare carriedforward. Any goodwillincludedinthecarryingamountisnotsubjecttoscheduledamortisa- proportional share ofnetprofit orloss,distributeddividends,otherchangesinequityandfairvalueadjustmentsfrom apreceding of net assets at amortised cost plus any applicable goodwill. The carrying amounts are increased or decreased each year by the income orexpenses. as adisposal.Thedifference betweenthenetproceeds from the saleandthecarryingamountare recognised inotheroperating further untilthedateofdisposal.Asinprevious year, noneoftheproperty, plantandequipment metthecriteriaofIFRS5. requirements ofIFRS5are met. The assetis written downto the selling price lessany costs to sell, if necessary, butnot depreciated – – – Tools andequipment Meters Machinery Transmission linesandpipelines Buildings 7. Expectedusefullife ofproperty, plantandequipment

Financial liabilitiesmeasur Financial assetsdesignatedatfairvaluethr Loans andr A In accordance withtherequirements ofIFRS7fordisclosures inthenotes,followingtablepresents EVN’s primaryfinancial The followingmeasurement categoriesare usedbyEVN: Primary financialinstruments A financialinstrumentisacontractthatgivesrisetoassetinonecompanyandliabilityoranequityinstru - 9. Financialinstruments Investments inequityaccountedinvesteesare initiallyrecognised atcostandsubsequentlymeasured attheproportional share 8. Investmentsinequityaccountedinvestees When property, plantandequipmentare retired, theacquisitionorproduction costandaccumulateddepreciation are reported Property, plantandequipmentdesignatedforsaleare classified as“heldforsale”whenthetransactionisapproved andthe vailable-for-sale financialassets(“AFS”) eceivables (“LAR”) ed atamortisedcost(“FLAC”) ough profit orloss(“@FVTPL”)

31. Financialresults ). Consolidated notes EVN Full Report2012/13 — Accountingpolicies Years 10 15 10 3 5

– – – – –

25 40 33 50 50 115

Financial statements 9. Classes and measurement categories of primary financial instruments Measurement category Current assets Other investments Miscellaneous investments AFS Other non-current assets Securities @FVTPL Loans receivable LAR Lease receivables and accrued lease transactions LAR Receivables arising from derivative transactions Hedge Accounting

Current assets Current receivables and other current assets Trade and other receivables LAR Receivables arising from derivative transactions Hedge Accounting Securities AFS Cash and cash equivalents Cash on hand and cash at banks LAR

Non-current liabilities Non-current loans and borrowings Bonds FLAC Bank loans FLAC Other non-current liabilities Leases FLAC Accruals of financial transactions FLAC Other liabilities FLAC Liabilities arising from derivative transactions Hedge Accounting

Current liabilities Current loans and borrowings FLAC Trade payables FLAC Other current liabilities Other financial liabilities FLAC Liabilities arising from derivative transactions Hedge Accounting

Primary financial instruments are recognised in the consolidated statement of financial position when EVN is contractually entitled to receive payment or other financial assets from another party. Purchases and sales at prevailing market conditions are reported as of the settlement date.

Primary financial instruments (with the exception of the valuation category @FVTPL) are initially recognised at fair value plus transaction costs. Subsequent measurement is based on the classification to the above measurement categories and the rules applicable to the individual categories. These rules are described in the notes to the individual items on the consolidated statement of financial position.

Derivative financial instruments The derivative financial instruments used by EVN include swaps, forwards and futures.

116 EVN Full Report 2012/13 valuation adjustments. and low-interest originatedloansare reported attheirpresent value.All identifiable risksare takenintoconsiderationbymeans of consolidated statementofoperations. acquisition dateandsubsequentlymeasured atfairvalueasofthebalancesheetdate.Changesinare recognised inthe previously recognised directly inequityare transferred toprofit orloss. decline” asadecrease of over 20%aperiodofninemonths.Whenfinancialassetsare sold,theunrealised profits orlosses equity instrumentheldbythecompanyissignificant orlastingandfallsbelowtheacquisitioncost.EVNdefinesa“significant, lasting Unrealised profits orlossesare recognised directly inequity.Animpairmentlossisrecognised if thedeclineinfairvalueofan are classified inthecategory“AFS”. immateriality aswellmiscellaneousinvestmentswithastakeoflessthan20.0%thatare Theseassets notconsolidatedat equity. impending lossesinaccordance withtherequirements ofIAS37. physical deliveries,butinsteadrepresent pendingpurchase andsaletransactions.Consequently,theymustbeassessedforpossible electricity production. ThesecontractsdonotconstitutederivativefinancialinstrumentsasdefinedinIAS39becausetheyleadto to hedgethepurchase pricesforexpectedelectricitydeliveriesorCO as changesrelated toelectricitytransactions. interest rateswaps. in thefairvalueofhedgedtransactions. under thepositionthatcontainshedgedtransaction.Fluctuationsinfairvalueofhedgesare basicallyoffset bythechanges hedged itemthatisattributabletotherisk.Theresults are generallyreported ontheconsolidatedstatementofoperations losses are transferred toprofit orlosswhenthehedgeissettled. under IAS39are recorded withoutrecognition toprofit orlossinthevaluationreserve according toIAS39.Thecumulativegainsand hedging transaction. (current ornon-current) liabilities. discounting-based valuation methods. Derivative financial instruments are reported as other (current or non-current) assets or other fair valueofderivativefinancialinstrumentsisdeterminedonthebasisquotedmarketprices,informationprovided bybanksor Originated loansare classified as“LAR”.Interest-bearing originatedloansare recorded atamortisedcost,whileinterest-free Securities recorded undernon-current assetsare initiallyrecognised as“@FVTPL”.Theseassetsare recorded atcostasofthe 11. Othernon-current assets These investmentsare recognised intheconsolidatedstatementoffinancialpositionatfairvaluebasedonshare prices,if possible. Other investments include shares in associated companies which are not included in the consolidated financial statements due to 10. Otherinvestments The forward andfutures contractsconcludedbyEVN forthepurchase orsaleofelectricityandCO EVN usesswaps,futures andforwards tolimitenergy sectorrisksarisingfrom changesincommodityandproduct pricesaswell The maininstrumentsusedbyEVNtomanageandlimitexistingexchangerateinterest raterisksare foreign currency and For fairvaluehedges,thecarryingamountofunderlyingtransactionisadjustedthrough profit orlossbythegainon The gainsandlossesarisingfrom thefairvaluemeasurement ofderivativefinancialinstrumentsclassified ascashflowhedges The accountingtreatment ofthechangesinfairvaluederivativesusedforhedgingpurposesdependsontype Derivative financialinstrumentsare recognised atcostwhenthecontractisconcludedandfairvalueinsubsequentperiods.The 2 emissioncertificates aswellthesellingpricesforplanned Consolidated notes EVN Full Report2012/13 2 emissioncertificates serve — Accountingpolicies 117

Financial statements Lease receivables and accrued lease transactions are related to the international project business of the Environmental Services Segment. They are classified as finance leases according to IAS 17 in conjunction with IFRIC 4 (see note 22. Leased and rented assets).

Receivables arising from derivative transactions are recognised at their fair values. Gains and losses arising from changes in the fair value of derivative financial instruments are either recognised to profit or loss in the consolidated statement of operations or recognised directly in equity (see note 9. Financial instruments).

The measurement of primary energy reserves and miscellaneous other non-current assets is based on acquisition or production cost or the lower net realisable value on the balance sheet date.

12. Inventories The measurement of inventories is based on acquisition or production cost or the lower net realisable value as of the balance sheet date. For marketable inventories, these values are derived from the current market price. For other inventories, these figures are based on the expected proceeds less future production costs. If the generation of electricity from primary energy inventories does not cover the full production cost, this electricity is carried at the lower replacement cost (which represents the best available measurement basis). Primary energy inventories held for trading purposes are carried at fair value (commodity exchange price) less selling costs. Risks arising from the length of storage or reduced marketability are reflected in experience-based reductions. The moving average price method is used to determine the consumption of primary energy inventories as well as raw materials, auxiliary materials and fuels.

The CO2 emission certificates allocated free of charge in accordance with the Austrian Emission Certificate Act are recognised at an acquisition cost of zero based on IAS 20 and IAS 38, due to the rejection of IFRIC 3 by the European Commission. Any additional purchases of CO2 emission certificates are recognised at cost, whereby additions to provisions for shortfalls are based on the fair value as of the balance sheet date.

13. Trade and other receivables Current receivables are generally reported at amortised cost, which equals the acquisition cost less impairment losses for the components of the receivables that are expected to be uncollectible. Possibly impaired receivables are grouped together on the basis of comparable default risk (especially the time outstanding) and tested together for impairment; any necessary impairment losses are then recognised. The impairment losses, which are recognised in the form of individual bad debt allowances by way of adjustment accounts, are sufficient to reflect the expected default risks. Specific default incidents result in derecognition of the related receivable.

Amortised costs, less any applicable impairment losses, can be considered appropriate estimates of the current value because the remaining term to maturity is generally less than one year.

Exceptions to the above procedure are derivative financial instruments, which are recognised at fair value, and foreign currency items, which are measured at the exchange rates in effect on the balance sheet date.

14. Securities Current securities classified as “AFS” are carried at their fair value. Changes in fair value are recorded under other comprehensive income without recognition through profit or loss.

15. Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits. These items are reported at current rates. Cash balances in foreign currencies are translated at the exchange rate in effect on the balance sheet date.

16. Equity In contrast to borrowings, equity is defined by the IFRS Framework as the “residual interest in the assets of an entity after deduct- ing all of its liabilities”. Equity is thus the residual value of a company’s assets and liabilities.

118 EVN Full Report 2012/13 number ofyears ofserviceandtheamount respective employee’s remuneration atthetimeseverancepaymentismade. 1 January2003if theyare dismissedorwhentheyreach thelegalretirement age.Theamountof suchpaymentsisbasedonthe included underfinancialresults. whereby thetimingof benefitswastakenintoaccount. mortality tables“RechnungsgrundlagenAVÖ 2008-P–RechnungsgrundlagenfürdiePensionsversicherungPagler &Pagler”. changes inactuarialassumptions–are recognised underothercomprehensive incomeinaccordance withIAS19(2011). urement principlesare describedinnote49.Non-current onlygainsandlossesfrom provisions . Allremeasurements –atEVN AG, increases insalariesandpensionsintoaccount. pension payments are distributed according to the number of years of service by employees until retirement, taking expected future and thecurrent claimsofretired personnelandtheirdependentstoreceive benefitsinkindtheformofelectricityandnaturalgas. to certainemployees,whichrequire EVNtopayretirement benefitsundercertainconditions. different investmentfundsinaccordance withtheprovisions ofthe AustrianPensionFundAct.commitmentswere alsomade defined contributionplanthatisfinancedthrough EVN-Pensionskasse.Thispensionfundinvestsitsassetsprimarilyin ficiaries are covered inpartbyprovisions forpensionsaswellbydefinedcontributionpaymentsonthepartofEVN-Pensionskasse. claims are fullycredited toward pensionpayments.Therefore, EVN’s obligationstoward bothretired employeesandprospective bene- EVN, inanycase,andtheemployees,asarule,alsomakecontributionstoEVN-Pensionskassepensionfundresulting supplementary pensionisbasedonperformanceaswellthelengthofserviceandamountremuneration atretirement. unbundling agreement forthespin-off oftheelectricity andnaturalgas networks, are nowemployedbyEVNNetz.Theamountofthis joined thecompany prior to31December1989.This commitment alsoappliestoemployeeswho,within the contextoflegal directly inequityaccountedinvestees. well asallremeasurements according toIAS19(2011).Thisitemalsoincludestheproportional share ofgainsandlossesrecognised losses from thefairvaluemeasurement ofotherinvestments,theeffective portionofchangesinthefairvaluecashflowhedgesas or lossaswelltherelated deferred taxes.Forexample,thispositioncontainsthecurrency translationreserve, unrealised gainsor acquisition costincreases ordecreases retained earnings. acquisition costandoffset againstretainedAnyprofit earnings. orlossresulting from theresale oftreasury shares relative tothe Austrian corporationsare required bylawtomake one-off severancepayments toemployeeswhoseemploymentbeganbefore Provision forseverancepayments The servicecostaddedtotheprovision isreported underpersonnelexpenses,whiletheinterest componentoftheadditionis The appliedinterest rateis basedonthemarketyieldsforfirst-class,fixed-interest industrialbondsasofthebalance sheetdate, As intheprevious year, thebiometricmeasurement principlesapplicabletotheprovisions forpensionswere basedontheAustrian The amountsoftheprovisions are determinedbyanactuaryasofeachbalancesheetdatebasedonexpertopinion. Themeas- The projected unitcredit methodisusedtodetermine theprovisions forpensionsandobligationssimilartopensions.Theexpected Provisions forobligationssimilartopensionswere recognised forliabilitiesarisingfrom thevestedclaimsofcurrent employees For employeeswhojoinedthecompanyafter1January1990,supplementarypensionhasbeenreplaced bya isrequiredUnder thetermsofacompanyagreement, EVN AG topayasupplementarypensiononretirement to employees who Provisions forpensionsandobligationssimilarto 17. Provisions The itemsrecorded underothercomprehensive incomeincludecertainchangesinequitythatare notrecognised through profit Treasury shares heldbyEVNare notrecognised assecuritiespursuanttoIAS32,butare insteadreported attheir(repurchase) Consolidated notes EVN Full Report2012/13 — Accountingpolicies 119

Financial statements Employees in Bulgaria and Macedonia are entitled to severance payments on retirement, which are based on the number of years of service. With regard to severance compensation entitlements, the other EVN employees are covered by similar social protection measures contingent on the legal, economic and tax framework of the country in which they work.

The provision for severance payments was calculated according to actuarial principles. This provision was measured using the same parameters as the provisions for pensions and obligations similar to pensions (the measurement principles are described in note 49. Non-current provisions). All remeasurements – at EVN AG, only gains and losses from changes in actuarial assumptions – are recognised under other comprehensive income in accordance with IAS 19 (2011).

The applied interest rate is based on the market yields for first-class, fixed-interest industrial bonds as of the balance sheet date, whereby the timing of the benefits was taken into account.

The service cost added to the provision is reported under personnel expenses, while the interest component of the addition is included under financial results.

The obligation to make one-off severance payments to employees of Austrian companies whose employment commenced after 31 December 2002 has been transferred to a defined contribution plan. The payments to this external employee fund are reported under personnel expenses.

Other provisions The other provisions reflect all recognisable legal or factual commitments to third parties based on past events, where the amount of the commitments and/or the precise starting point was still uncertain. In these cases, a reliable estimate of the amount of the obligation is required. If a reliable estimate is not possible, a provision is not recognised. These provisions are recognised at the discounted settlement amount. They are measured based on the expected value or the amount most likely to be incurred.

The applied discount rates are pre-tax rates that reflect actual market expectations for the interest rate effect and the specific risks attributable to the respective provisions.

The provisions for service anniversary bonuses required by collective wage and company agreements are measured using the same parameters as the provisions for pensions and obligations similar to pensions. All remeasurements – at EVN AG, only gains and losses from changes in actuarial assumptions – are recognised with respect to jubilee benefits through profit or loss in accordance with IAS 19 (2011). The service cost added to the provision is reported under personnel expenses, while the interest component of the addition is included under financial results.

Waste disposal and land restoration requirements related to legal and perceived commitments are recorded at the present value of the expected future costs. Changes in the estimated costs or the interest rate are offset against the carrying amount of the underlying asset. If the decrease in a provision exceeds the carrying amount of the asset, the difference is recognised through profit or loss.

Provisions for onerous contracts are recognised at the amount of the unavoidable outflow of resources. This represents the lower of the amount that would result from performance of the contract and any compensatory payments to be made in the event of non-performance.

18. Liabilities Liabilities are reported at amortised cost, with the exception of liabilities arising from derivative financial instruments or liabilities arising from hedge accounting (see note 9. Financial instruments). Costs for the procurement of funds are considered part of amortised cost. Non-current liabilities are discounted by applying the effective interest method.

With respect to financial liabilities, bullet loans and borrowings with a remaining term to maturity over one year are classified as non-current and items with a remaining term to maturity less than one year are reported under current loans and borrowings. The

120 EVN Full Report 2012/13 revenue surplus mustbeoffset byEVN inthefuture tariff structure. Basedon theIFRSFrameworkand2009 draftversionofthe EVN isentitledtotheinclusion of anyrevenue shortfalls in thedefinitionoftariff structure forthenextregulatory period.Any “accounting policychoice”for the accountingtreatment of the revenue surplusor shortfall. Inaccordance with legalregulations, 39. Receivables). also confirmedthatEVNshouldgenerallybecompensatedfor theseuncovered costs(seenotes37.Othernon-current assets and be compensatedfor the additionalcostsarisingfrom the purchase ofrenewable electricity.TheBulgarianregulatory authorityhas interim financing.Inaccordance withArticle35oftheBulgarianEnergyAct,endsuppliers(likesalescompany)must electricity ledtosignificantly highercostsforEVNduringtheperiodfrom 1July2012to312013intheform ofnecessary payment period. In accordance with§ with compensationfordifferences betweenactualrevenue andtheofficially establishedrevenue bymeansofa“virtualaccount“. wirtschaftsgesetz 2011”,GWG).Thepurposeofthenewlyestablished regulatory accountistoprovide everynetwork operator consideration forfuture tariff adjustments. market participantsatregular intervals.Revenueaboveorbelowthetargetisrecorded undertheregulatory accountandtakeninto in theformofaregulatory account(§ 2010”, ElWOG),whichtookeffect on3March 2011, introduced anewex-postregulation procedure fornetworkoperatorrevenue of deferred incomefrom constructionsubsidiesare reported underotheroperatingincome. of goods or services. The construction subsidies received by EVN fall in part under the scope of application of IFRIC 18. The reversals cash whichisthenusedtoacquire orconstructanassettoprovide thecustomerwithaccesstoanetworkoranon-goingsupply entitlement topaymentarises. recognised whenEVNhasprovided abillableservice to thecustomer. in thebillingsystemsandaccruedlinewithquantitiesofenergywatersuppliedduringreporting period.Revenuesare represent anoffset totheacquisitioncostoftheseassets.Thegrantinginvestmentsubsidiesgenerallyrequires anoperational are therefore reported asliabilitiesintheconsolidatedstatementoffinancialpositionanalogousapplication ofIAS20. and borrowings (forinformationonmaturitiesseenote47.Non-current financialliabilities). current portionofloansandborrowings withregular scheduledrepayments isnotreclassified, butincludedundernon-current loans network subsidiesisr management structur Legal regulations donotprovide acleardefinitionoftheaccountingapproach tobeappliedinthiscase.However, there isan Intervention bytheBulgarianregulatory authorityinconnectionwiththedistributionofcostsassociatedrenewable In Austria,theamendmenttoElectricityEconomyandOrganisationalAct(“Elektrizitätswirtschafts-und-organisations Electricity andnaturalgasnetworkregulatory authoritiesdefineandevaluateappropriate “targetrevenue” fortheindividual Regulatory account IFRIC 18regulates theaccountingtreatment forbusiness transactionsinwhichacompanyreceives from itscustomersanassetor Interest incomeisreported pro ratatemporisusingtheeffective interest rateoftheasset.Dividendsare recognised whenalegal Revenues from theendcustomerbusinessare determined asofthebalancesheetdateinpartbasedonstatisticalprocedures used Realisation ofrevenue (ingeneral) 19. Revenuerecognition Construction subsidies–whichconstitutepaymentsmadebycustomersaspartofprevious investmentsinnetworkconstruction– Construction subsidiesandinvestmentgrantsdonotreduce theacquisitionorproduction costofthecorresponding assets.They

eleased onastraight-linebasisovertheaverageusefullife oftherespective assets. 50 ElWOGand§ e thatcomplieswithlegalrequirements andhasbeenapproved bytheauthorities.Deferred income from

71 GWG,thesedi

50 ElWOG).ThissystemwasalsointegratedintotheNatural Gas Actof2011(“§ fferences are takenintoaccountindeterminingthecostbasisfornext Consolidated notes EVN Full Report2012/13 — Accountingpolicies gesetzes

71 Gas- 121

Financial statements standard on “Rate-regulated activities”, EVN recognises an asset (under other assets) or a liability (under other liabilities). Depending on the time period involved in the tariff adjustment, a distinction is also made between current and non-current for these capitalised asset or liability differences. The non-current component of the regulatory account recognised under other assets is discounted over the presumed time period.

EVN will appropriately apply any clear rules issued in the future for the accounting treatment of the regulatory account.

Contract manufacturing Receivables from the project business (in particular, PPP projects – Public Private Partnership) and the related revenue are accounted for by applying the percentage of completion (PoC) method. Projects are subject to individual contract terms that specify fixed prices. The degree of completion is determined using the cost-to-cost method. This entails recognising revenue and profits at the ratio of the costs actually incurred to the estimated total costs for the project. Reliable estimates of the total costs, selling prices and actual costs incurred are available. Changes in the estimated contract costs and any related losses are recognised to profit or loss as incurred. The technological and financial risks that might occur during the remaining project period are estimated for each project, and a corresponding contingency fee is included in the estimated contract costs. Impending losses on the valuation of projects not yet invoiced are expensed as incurred. Impending losses are recognised when it is probable that the total contract costs will exceed the contract revenues.

20. Income taxes and deferred taxes The income tax expense reported in the consolidated statement of operations comprises the current income tax expense for fully consolidated companies, which is based on their taxable income and the applicable income tax rate, as well as the change in deferred tax assets and deferred tax liabilities.

122 EVN Full Report 2012/13 Macedonia Lithuania Croatia Estonia EVN AG isamemberofcorporatetaxgroup whosetop-tiercorporationisNÖLandes-BeteiligungsholdingGmbH,St. EVN AG presented as anetamountintheconsolidated financialstatementsif there isalegalrightandintention tooffset theseitems. to utilisetheseitems. Tax losscarryforwards are recognised asdeferred tax assets.Deferred taxassets anddeferred taxliabilities are balance outinthefuture). the carryingamountsinconsolidated financialstatementsandtheannual prepared fortaxpurposesthatwill Deferred taxassetsanddeferred taxliabilitiesare calculatedandrecognised foralltemporarydifferences (i.e.thedifferences between statements are prepared. which callsforanegativetaxchargeWEEVBeteiligungsGmbH if taxableresults are negative. future Anexceptiontothisprocedure positiveearnings. isthecontractconcludedwithgroup memberWEEVBeteiligungsGmbH, method. tion. Asanoffset forthetransferred taxableresults, thetaxgroup contractsincludeataxchargethatisbasedonthestand-alone taxable profit ofthecompaniesbelongingtothesegroups isassignedtotherespective superiorgroup memberortop-tiercorpora- 5.8% corporate incometax,incl.solidaritysurcharge, and14.2% trade tax 2) 1) Germany Bulgaria Albania Austria Headquarters % 2 3) Cyprus Turkey Czech Republic Slovenia Serbia Russia Romania Poland Montenegro 0. Corporateincometaxrates

T T 1 In Macedonia,non-deductibleexpensesare alsosubjecttocorporate incometax. axes on corporate profits are levied when dividends are paidtotheshareholders.axes oncorporateareRetainedearnings profits leviedwhendividends nottaxed. EVN haselectedtoutilisetheoptionprovided byAustrianlawandmaintainsfour(previous year:five)corporatetaxgroups. Deferred taxassetsare recognised onlyif itisprobable thatthere willbesufficient taxable incomeortaxabletemporarydifferences Deferred taxes are calculated according to the liability method at the tax rate expected when short-term differences are reversed. Future changesinthetaxrate are takenintoaccountif therelevant lawhasbeenenactedbythetimeconsolidatedfinancial The transferoflossesfrom foreign subsidiariesleadstotherecognition ofaliability forthefuture corporateincometaxobligation. Transferred taxlossesare keptonrecord losscarryforwards“ as“internal fortherespective taxgroup member(s)andoffset against The followingtaxrateswere appliedincalculatingcurrent incometaxes: he taxonnon-tax-deductibleexpensesispayableannually. 2)

)3) 2)

Consolidated notes EVN Full Report2012/13 2012/13 21.0 15.0 20.0 30.0 10.0 10.0 25.0 12.5 20.0 19.0 17.0 15.0 20.0 16.0 19.0 10.0 — Accountingpolicies 9.0 2011/12

Pölten. The 21.0 15.0 20.0 30.0 10.0 10.0 25.0 10.0 20.0 19.0 18.0 10.0 20.0 16.0 19.0 10.0 9.0 123

Financial statements Deferred taxes are not recognised in the consolidated balance sheet for temporary differences resulting from investments in equity accounted investees.

21. Procedures and effects of impairment tests All assets that fall under the scope of application of IAS 36 are tested as of the balance sheet date to determine whether there are sufficient internal or external signs of impairment. Property, plant and equipment and intangible assets with definite useful lives are subject to scheduled depreciation and amortisation, and must only be tested for impairment if there are clear signs of a possible lasting decline in value. In contrast, goodwill and intangible assets with indefinite lives must be tested for impairment at least once each year.

The impairment testing of goodwill and assets for which no expected future cash flows can be identified is based on an assessment of the respective cash-generating unit (CGU). The CGUs that generate separate cash flows and – in the case of impairment tests of goodwill – derive benefits from the synergies resulting from the given business combination must be identified for the purpose of assignment. Any non-assignable consolidation differences are primarily allocated to the CGUs “electricity distribution Bulgaria”, “electricity distribution Macedonia“ and “environmental services”.

The decisive criterion for classifying property, plant and equipment to a CGU is its technical and commercial ability to generate independent revenues. In the EVN Group, this definition applies to electricity and heat generation plants, electricity and natural gas distribution systems, wind parks, data transmission lines and electricity purchasing rights.

In assessing impairment, the higher of the net selling price and the value in use of the CGU is compared to the carrying amount of the CGU and the carrying amount of the asset. The net selling price corresponds to the fair value less costs to sell.

A pre-tax weighted average cost of capital (WACC) was used as the discount rate. The equity component of the WACC reflects the risk-free interest rate for 10-year EU bonds plus a risk premium that incorporates the market risk and an appropriate beta coefficient based on peer group capital market indicators. The debt component of the WACC equals the basis interest rate plus an EVN-specific risk premium. These two components are weighted according to the targeted capital structure of 50:50 at market values (equity based on market capitalisation). Cash flows are discounted at a pre-tax WACC of 8.7% (previous year: 8.7%), which is adjusted for specific company and country risks.

The calculation of the value in use is based on the expected future cash inflows and outflows, which are basically derived from medium-term internal forecasts. Electricity prices are derived from forecasts issued by a well-known information service provider. This valuation process incorporates future expected revenues as well as operating, maintenance and repair expenses. The valuation process for property, plant and equipment and intangible assets with definite lives also includes the condition of the respective asset. The quality of the forecast data is regularly compared with actual results through a variance analysis. These findings are taken into consideration in developing the next medium-term corporate forecast.

The cash flow forecasts are based on the latest financial forecasts approved by management and cover the period for which reliable forecasts can be prepared. The detailed planning period equals five years in accordance with IAS 36, with the exception of the impairment tests in the Energy Supply South East Europe Segment.

In South Eastern Europe, the regulatory framework and the level of network losses resulting from the current economic environment lead to expectations that the transformation process will continue over a longer period of time. The use of a five-year forecast period with the subsequent extrapolation of results would therefore not correctly represent the given circumstances. This led to the extension of the detailed planning period for the CGU electricity supply Bulgaria and the CGU electricity supply Macedonia to 10 years. Regular ex-post analyses indicate that the forecasts are precise and the assumptions are reliable.

If the recoverable amount is lower than the carrying amount, the carrying amount must be reduced to this lower value and an impairment loss must be recognised. If the carrying amount of a CGU to which goodwill or any other asset has been allocated exceeds

124 EVN Full Report 2012/13 CGU in2012/13(shortfallof4.5%). in 2012/13(surplusof26.4%). forecasts, thediscountrateandgrowth rateafter theendofdetailedplanningperiod. to theCGUelectricitysupplyMacedonia. indefinite useful life. These customer relations had a total acquisition cost of EUR 24.5m (previous year: EUR 24.5m) and are allocated Growth rate –1% Growth rate +1% WACC –1% WACC +1% Sensitivities Growth rate afterthedetailedplanningperiodof10years Pre-tax WACC Other CGUs Environmental services Macedonia Electricity distribution Assumptions 2 Total goodwill Bulgaria Electricity distribution 2 written downinconnectionwithanimpairmenttestmaynotberevalued, evenif thereasons forimpairmenthaveceasedtoexist. from the write-up may not exceed the amortised acquisition or depreciated production cost. In accordance with IAS 36, goodwill to aproportional reduction ofthecarryingamountsCGU’s remaining assets. the recoverable amount,thegoodwillorrespective assetiswrittendownbytheresulting difference. Anyfurtherimpairmentleads 1. ElectricitydistributionBulgaria 1. Allocationofgoodwilltocash-generatingunits An increase (decrease) of1%in the growth factor, ceterisparibus,wouldhaveledto a surplusof16.9%inthenetassets of the An increase (decrease) of1%intheWACC, ceterisparibus,wouldhaveledtoashortfallof11.2%inthe netassetsoftheCGU The carryingamountofthenetassetsinCGUelectricitysupply BulgariatotalledEUR585.5m(previous year:EUR581.7m). Energy supplySouthEastEurope The assumptionsappliedtothemajorcash-generatingunitsandrelated sensitivityanalysesare showninthefollowingtable: The major assumptions used to calculatethe value in use for goodwill and intangible assets with an indefinite life are the cash flow As of30September2013,theEVN Group alsohadcustomerrelations inmarketswhichare stillregulated andtherefore havean The carryingamountsofgoodwillare asfollows: The respective assetsare writtenupif thereason forimpairmentceasestoexist.Theincrease inthecarryingamountresulting Consolidated notes EVN Full Report2012/13 2012/13 2012/13 –11.2% 16.9% 26.4% –4.5% 210.0 122.6 2.5% 8.7% 54.0 26.3 — Accountingpolicies 7.1 2011/12 2011/12 –12.8% 21.3% 31.9% –5.4% 210.0 122.6 2.5% 9.4% 54.0 26.3 7.1 125

Financial statements 21. Electricity distribution Macedonia 2012/13 2011/12 Assumptions Pre-tax WACC 11.6% 12.0% Growth rate after the detailed planning period of 10 years 2.0% 2.0%

Sensitivities WACC +1% 14.0% 18.9% WACC –1% 47.4% 57.4% Growth rate +1% 37.1% 46.4% Growth rate –1% 22.1% 27.4%

The carrying amount of the net assets in the CGU electricity supply n Macedonia totalled EUR 316.2m (previous year: EUR 292.8m).

An increase (decrease) of 1% in the WACC, ceteris paribus, would have led to a surplus of 14.0% in the net assets of the CGU in 2012/13 (surplus of 47.4%).

An increase (decrease) of 1% in the growth factor, ceteris paribus, would have led to a surplus of 37.1% in the net assets of the CGU in 2012/13 (surplus of 22.1%).

Environmental services The impairment testing of goodwill in the CGU environmental services was based on a pre-tax WACC of 12.0% (previous year: 10.0%). The carrying amount of the net assets in the CGU environmental services totalled EUR 262.9m. An increase (decrease) of 1% in the WACC, ceteris paribus, would have led to a shortfall of 3.1% in the net assets of the CGU in 2012/13 (surplus of 14.8%).

22. Leased and rented assets In accordance with IAS 17, a leased asset is allocated to the lessee or lessor based on the transfer of significant risks and rewards incidental to the ownership of the asset.

Non-current lease receivables arising in connection with PPP projects carried out by the Environmental Services Segment – in which a facility is built, financed and then operated on behalf of the customer for a fixed period of time, after which the plant becomes the property of the customer – are classified as finance leases in accordance with IAS 17 in conjunction with IFRIC 4, and recognised as such in EVN’s consolidated financial statements.

Assets obtained through finance leases are capitalised by the lessee at the fair value or the lower present value of the minimum lease payments, and depreciated on a straight-line basis over their expected useful life or the shorter contract period. Payment obligations resulting from future lease payments are reported as liabilities. Assets obtained through operating leases are attributed to the lessor, and the related lease payments are expensed by the lessee in equal amounts over the term of the lease.

23. Accounting estimates and forward-looking statements The preparation of the consolidated financial statements in accordance with generally accepted IFRS accounting methods requires estimates and assumptions that have an effect on the assets, liabilities, income and expenses reported in the consolidated financial statements and on the amounts shown in the notes. The actual values may differ from these estimates. The assumptions and estimates are reviewed on a regular basis.

Impairment tests require estimates, especially for future cash surpluses. A change in the general economic, industry or company environment may reduce cash surpluses and therefore lead to signs of impairment (see note 21. Procedures and effects of impairment tests).

126 EVN Full Report 2012/13 income andexpensesintoaccount(seenote57.Segmentreporting ). taxes, amortisationofintangibleassetsanddepreciation offixedassetsforthecompaniesincludedinsegment,takingintragroup ure performance. For each segment, EBITDA represents the segments’ internal the total net operating profit or loss before interest, reporting structure. TheassessmentofallsegmentinformationisconsistentwithIFRS.EBITDAtheprimaryindicator usedtomeas- Supply SouthEastEurope, Environmental ServicesandStrategicInvestmentsOtherBusiness.Thisconformsinfull totheinternal EVN’s hasdefinedthefollowingoperatingsegments:Generation,EnergyTrade andSupply,NetworkInfrastructure Austria,Energy decision makerasdefinedinIFRS8)reviewsmanagementreports internal oneachoperatingsegmentatleastoncequarter. Group (thechiefoperating managementdecisions(the “managementapproach”).for internal TheExecutiveBoard oftheEVN under thegivencircumstances. and addition, it is necessary to make assumptions and estimates for the valuation of receivables and inventories (see notes 7. Property, plantandequipment)theprovisions forlegalproceedings andenvironmental protection (seenote17.Provisions). In may leadtochangesinmeasurement duringfuture periods (seenote49.Non-current provisions ). payments isbasedonassumptionsforthediscountrate,retirement age,life expectancyandfuture pensionandsalaryincreases that transactions inthefuture (seenote37.Othernon-current assets). couldleadtochangesin the presentationThis, inturn, and/ormeasurement oftheselong-termreceivables andaccrualsfrom leasing plant byEVNaswelltherealisation oftheinvestmentcontractforconstructionandoperationwasteutilisationplant. pended. Theabove-mentionednegotiationsandlegalproceedings couldendangerthestartofoperationsinsodiumhypochlorite been reflected inanappropriate provision fortherelated legalexpenses.Thecommissioningoffurthersubcontractorswasalsosus- building permitforthewasteutilisationplanthasstillnotbeenissued.Legalproceedings are pendinginthisconnectionandhave hypochlorite plantwascompletedonschedule,butitscommercial start-uphasbeendelayedbytheCityofMoscow.Inaddition, subsequent amendmentoftheproject structure forthesodiumhypochloriteplantandwasteutilisationno.1.The ness are basedoncurrent assumptionsandestimates.Discussionsare currently inprogress overthe withtheMoscowcitygovernment 37. Othernon-current assetsand39.Receivables). ment Disputes,aninstitutioncreated bytheWorld Bank.Future developmentscanleadtoachangeinthismeasurement (seenotes These claimsare alsobeingpursuedinarbitrationproceedingsCenterfortheSettlementofInvest- initiatedwiththeInternational receivables followingaconfirmationbytheregulatory authoritythatEVNshouldgenerallybecompensatedfortheuncovered costs. The identificationorganisationalandreporting ofoperatingsegmentsisbasedontheinternal structure andinformationprepared 24. Principlesofsegmentreporting Assumptions andestimatesare alsorequired todeterminetheusefullife ofnon-current assets(seenotes6.Intangibleand The measurement of the existingprovisions for pensionsand obligations similartopensions as well the provisions for severance The measurement andpresentation ofnon-current receivables andaccrualsfrom leasingtransactionsintheenvironmental busi- The measurement ofregulatory assetsinBulgariaisbasedoncurrent assumptions.EVN’s preceding claimswere recognised as 13. Trade andotherreceivables). Theseestimatesare basedonhistoricaldataandotherassumptionsconsidered appropriate Consolidated notes EVN Full Report2012/13 — Accountingpolicies 12. Inventories 127

Financial statements Notes to the consolidated statement of operations

25. Revenue Revenue recorded by the individual business segments developed as follows:

25. Revenue EURm 2012/13 2011/12 Revenue Generation 34.6 40.3 Revenue Network Infrastructure Austria 443.8 438.2 Revenue Energy Trade and Supply 1,038.8 1,082.2 Revenue Energy Supply South East Europe 1,007.3 968.6 Revenue Environmental Services 227.2 314.9 Revenue Strategic Investments and Other Business 3.3 2.3 Total 2,755.0 2,846.5

Revenue includes income of EUR 83.5m (previous year: EUR 123.9m) from contract work on international PPP projects (see note 37. Other non-current assets).

26. Other operating income

26. Other operating income EURm 2012/13 2011/12 Income from the reversal of deferred income from network subsidies 39.8 35.9 Own work capitalised 15.2 15.9 Change in work in progress 12.5 –2.2 Interest on late payments 9.8 6.8 Insurance compensation 3.6 5.8 Rental income 2.4 2.8 Income from the disposal of fully consolidated companies 0.5 3.1 Income from the disposal of intangible assets and property, plant and equipment 0.0*) 1.9 Miscellaneous operating income 11.2 11.4 Total 95.5 81.3 *) Small amount

Other operating income consists primarily of bonuses, subsidies and grants as well as the sale of goods and services that are not related to EVN’s business operations.

The increase in work in process is attributable to customer projects that had not been invoiced by the balance sheet date.

27. Cost of materials and services The expenses for the purchase of electricity from third parties and the purchase of energy carriers consist primarily of the costs for electricity, natural gas, coal and biomass. Also included here are costs of EUR 3.5m (previous year: EUR 7.2m) for the purchase of additional CO2 emission certificates during the reporting period due to the insufficient allocation of free certificates.

Third-party services and other materials and services were related primarily to the project business in the Environmental Services Segment as well as services for the operation and maintenance of plants. This position also includes costs directly attributable to the required services.

128 EVN Full Report 2012/13 wage employees),whereby nodistinctionismadebetweensalariedandwageemployeesinBulgariaMacedonia. EUR 0.7m(previous year:EUR0.6m)toEVNpensionfunds. verage fortheyear 1) Total Strategic InvestmentsandOtherBusiness Environmental Services Energy SupplySouth EastEurope Energy Trade andSupply Network Infrastructure Austria Generation 28. Employeesbybusinessunit wasadjusted(seenote2.Reportinginaccordancehe prioryearfigure withIFRS) 1) Total Salaries andwages EURm 28. Personnelexpenses Total servicesandothermaterials Third-party Electricity purchases from third partiesandprimaryenergy expenses EURm 27. Costofmaterialsandservices Other employee-related expenses Compulsory socialsecuritycontributionsandpayroll-related taxes Pension costs Severance payments

A T The procedure usedforimpairmenttestingisdescribedundernote21.Procedures andeffects ofimpairmenttests. 29. Depreciation andamortisation Employees from proportionately consolidatedcompanieswere includedinaccordance withthestakeheldbyEVN. The averagenumberofemployeescomprised95.9%salariedand 4.1%wageemployees(previous year:96.0%salariedand4.0% The averagenumberofemployeeswasasfollows: Personnel expensesincludepaymentsofEUR5.7m(previous year:8.5m)toEVN-Pensionskasseaswellcontributionsof 28. Personnelexpenses 1) 1) 1)

Consolidated notes — Notestotheconsolidatedstatementofoperations EVN Full Report2012/13 2012/13 2012/13 2012/13 1,908.4 1,612.6 7,497 307.1 4,625 1,299 295.8 237.6 50.2 466 591 324 192 7.6 5.2 6.4 2011/12 2011/12 2011/12 1,980.5 1,630.6 7,594 312.6 4,775 1,281 350.0 238.2 50.1 440 600 300 198 9.5 7.3 7.6 129

Financial statements 29. Depreciation and amortisation by items of the Consolidated statement of financial position EURm 2012/13 2011/12 Amortisation of intangible assets 14.9 15.2 Depreciation of property, plant and equipment 224.2 236.2 Total 239.1 251.3

29. Depreciation and amortisation EURm 2012/13 2011/12 Scheduled depreciation and amortisation 238.1 228.0 Impairment losses1) 1.0 23.3 Total 239.1 251.3

1) For details, see notes 34. Intangible assets and 35. Property, plant and equipment

30. Other operating expenses

30. Other operating expenses EURm 2012/13 2011/12 Write-off of receivables 37.3 43.4 Legal and consulting fees, expenses related to risks of legal proceedings 35.0 24.9 Business operation taxes and duties 16.0 15.8 Telecommunications and postage 11.6 12.7 Transportation and travelling expenses, automobile expenses 11.4 11.6 Advertising expenses 10.7 13.1 Insurance 9.0 9.3 Maintenance 6.9 5.0 Rents 7.0 –0.1 Employee training 2.4 2.7 Miscellaneous other operating expenses 30.1 21.6 Total 177.4 160.1

The position “legal and consulting fees, expenses related to the risks of legal proceedings” also contains changes in the provision for legal proceedings. Rents also include the changes in the provisions for network access fees. Miscellaneous operating expenses comprise environmental protection expenses, fees for monetary transactions, licenses and membership fees as well as administrative and office expenses.

130 EVN Full Report 2012/13 impending lossesoncontractually agreed, long-termtransport andLNGcapacitybookings. first quarterof2012/13,resulted from thehighnegativespread tohubprice-linkedsalesandfrom therecognition ofaprovision for for thesharpdrop inincomefrom contributionfrom investments.Thenegativeearnings EconGas,whichwasrecognised duringthe depreciation andamortisation relating totheacquisitionofassetsandanynecessaryimpairmentlosses. l amount 2) 1) *) Financial results Total otherfinancialresults ofnon-current securities(“@FVTPL”) anddisposals Results ofvaluationgains/losses Other financialresults Total interest results Total interest expense Total interest income Other interest income Interest assets incomeon non-current financial Interest results Total incomefrom investments Gain from otherinvestments Income from investmentsinequityaccountedinvestees Energie Burgenland ZOV; ZOV UIP EconGas RAG Income from investments EURm 31. Financialresults Other financial results Other financial Currency gains/losses Other interest expense Miscellaneous Write-down thereof othercompanies thereof Verbund AG Dividend payments Other companies Shkodra WEEV BeteiligungsGmbH HydropowerDevoll ShA Interest expensepersonnel provisions Interest assets expenseon non-current financial

T A stakeof49.0%inEner Smal Negative earnings contributionsbyEconGas,DevollHydropowerNegative earnings ShA,WEEVBeteiligungsGmbH andShkodrawere responsible The incomefrom investments inequityaccountedinvesteesconsistschieflyoftheproportional share ofprofit orlossaswell 31. Financialresults he prior year figure wasadjusted(seenote2.Reportinginaccordancehe prioryearfigure withIFRS) 1) gie Burgenland AGthrough BUHO. isheldindirectly

2) Consolidated notes — Notestotheconsolidatedstatementofoperations EVN Full Report2012/13 2012/13 –100.1 –38.1 –71.7 –19.7 –15.5 –20.4 –29.6 –27.6 –75.2 10.0 28.4 36.8 26.8 –3.2 21.2 11.8 80.1 24.1 27.2 –3.0 –0.1 –0.1 –9.5 –0.4 7.2 9.7 3.1 5.6 – 2011/12 –104.4 111.3 –73.5 –16.5 –81.5 87.0 36.5 30.9 24.3 –1.3 25.6 12.4 73.5 22.1 25.1 –5.4 –3.0 –6.4 –0.9 –1.3 0.0 5.3 1.9 0.4 1.4 3.1 2.8 2.5 0.6 131 *)

Financial statements In addition, the sale of the stake owned by EVN AG in Devoll Hydropower ShA to Statkraft A.S. led to a non-recurring negative pre-tax effect of EUR 27.6m.

The negative earnings contribution from WEEV Beteiligungs GmbH resulted from a valuation-related impairment loss to the Verbund shares held by this company to reflect the significant and lasting decline in the price of these shares below their cost. WEEV Beteiligungs GmbH was founded together with the syndicate partner Wiener Stadtwerke Holding AG to participate in the capital increase by Verbund and was initially included in EVN’s consolidated financial statements at equity during the first quarter of 2010/11. The adjustments to reflect the change in market value were previously recorded to the valuation reserve after the deduction of deferred taxes in accordance with IAS 39. However, IFRS require the recognition of an impairment charge through profit or loss when there is a significant and lasting decline in the share price. The negative contribution by WEEV Beteiligungs GmbH is a result of this impairment loss.

The negative earnings contribution from Shkodra Region Beteiligungsholding GmbH in connection with the Ashta hydropower plant in Albania resulted from several effects. The possible extension of the concession implied by representatives of the Albanian government as economic compensation for the flood damage incurred during the construction stage as well as construction delays and the related higher costs is now connected with significant uncertainty due to the change in the government. In addition, customer risk has increased due to the delayed receipt of payments. The estimated income from the sale of certified emission reductions (CERs) has also declined.

Interest income on non-current financial assets includes interest from investment funds that focus chiefly on fixed-interest securities as well as the interest component from the lease business. Other interest income generally relates to income from cash and cash equivalents and from securities recorded under current financial assets.

Interest expense on non-current financial liabilities represents regular interest payments on issued bonds and non-current bank loans. Other interest expense includes the accrued interest expense on non-current provisions, expenses for current loans as well as lease costs for biomass equipment, distribution and heating networks.

32. Income tax expense

32. Income tax expense EURm 2012/13 2011/12 Current income tax expense 32.4 29.3 thereof Austrian companies 22.0 19.4 thereof foreign companies 10.3 9.9 Deferred tax revenue –10.3 –3.4 thereof Austrian companies –9.4 –5.7 thereof foreign companies –0.8 2.3 Total 22.1 25.9

132 EVN Full Report 2012/13 EUR 0.64(previous year:EUR1.09). there isnodifference pershare. betweenbasicanddilutedearnings may bedilutedbyso-calledpotentialshares arisingfrom stockoptionsorconvertiblebonds.SinceEVNdidnothaveanysuchshares, ers) bytheweightedaveragenumberofordinary shares outstanding,i.e.178,356,673 (previous year:179,378,364).Thisamount corporate taxratesofallconsolidatedsubsidiaries. 12.3% ofprofit before tax(previous year:10.0%).Theeffective taxraterepresents theweightedaverageofeffective local Devoll Hydropower, EconGasandEnergieAllianz(previousEVN’s year:EVNKavarna). effective taxratefor thereporting yearequalled Income tax rate/income taxexpenseatnominalrate Income taxrate/income Profit before incometax Effective tax rate/effective incometaxexpense Effective taxrate/effective idated statementofoperations: in 2013(previous year:25.0%)andtheeffective corporateincometaxrateforthe2012/13financialyearasreported intheconsol- –/ – + + – + – + 32. Calculationoftheeffective taxrate

/ Revaluationofdeferred taxes /– Different corporate incometaxrates inothercountries /– + – Aperiodic taxreductions/increases – Aperiodic Non-deductible expenses Other taxfr Write-offs accor T Otheritems Based onGroup netprofit ofEUR114.7mforthe2012/13 financialyear(previouspershare year:EUR194.9m),earnings equalled pershareEarnings were calculatedbydividingGroup netprofit (=proportional share ofprofit attributabletoEVN AG sharehold- pershare33. Earnings The write-offs according totaxlawin2012/13are related totheimpairmentlossesrecognised totheinvestmentsinShkodra, The followingtableexplainsthereasons forthedifference betweentheAustriancorporateincometaxrate of25.0%thatapplied ax-free incomefrom investments ee income ding totaxlaw ding Consolidated notes n% EURm in% — Notestotheconsolidatedstatementofoperations 25.0 12.3 –0.9 –8.7 –0.3 –7.6 –4.5 0.3 6.6 2.5 2012/13 – 180.3 –15.7 –13.7 45.1 22.1 11.8 –1.7 –0.6 –8.1 0.5 4.6 EVN Full Report2012/13 i EURm in% –12.8 25.0 10.0 –1.9 –0.2 –0.7 –1.4 0.1 0.4 1.5 2011/12 – 259.7 –33.1 64.9 25.9 –5.0 –0.6 –1.8 –3.7 0.2 1.0 4.0 133

Financial statements Notes to the consolidated statement of financial position

Assets

Non-current assets The net value represents the residual book value, which equals the acquisition or production cost less accumulated depreciation or amortisation.

Currency translation differences arise from the translation of foreign companies’ assets using different exchange rates at the beginning and end of the 2012/13 financial year.

34. Intangible assets Other intangible assets include, above all, electricity procurement rights, transportation rights for natural gas pipelines and other rights (primarily software licenses and the customer base of the Bulgarian and Macedonian electricity supply companies).

No impairment losses were recognised to intangible assets during the reporting year (previous year: EUR 0.5m).

The additions to goodwill from changes in the scope of consolidation amounted to EUR 2.8m in the previous year and resulted from the acquisition of FWG-Fernwärmeversorgung Hollabrunn registrierte Genossenschaft mit beschränkter Haftung.

In 2012/13, a total of EUR 1.6m (previous year: EUR 1.6m) was invested in research and development. The criteria required by IFRS to capitalise these items were not fulfilled.

34. Reconciliation of intangible assets EURm Goodwill Other intangible assets Total 2012/13 financial year Gross value on 30.09.2012 219.2 414.9 634.2 Currency translation differences 0.0*) 0.0*) 0.0*) Changes in the scope of consolidation – – – Additions – 8.6 8.6 Disposals – –1.3 –1.3 Transfers – –1.1 –1.1 Gross value on 30.09.2013 219.2 421.2 640.4

Accumulated amortisation 30.09.2012 –9.2 –221.9 –231.1 Currency translation differences – 0.0*) 0.0*) Scheduled amortisation – –14.9 –14.9 Impairment losses – – – Disposals – 1.2 1.2 Transfers – 1.9 1.9 Accumulated amortisation 30.09.2013 –9.2 –233.7 –242.9 Net value 30.09.2012 210.0 193.0 403.1 Net value 30.09.2013 210.0 187.5 397.6

*) Small amount

134 EVN Full Report 2012/13 the tion plants is reported on the consolidated statement of financial position. The net value of these assets totalled EUR 13.3m as of to equipmentunderconstructionasofthebalancesheetdate. tariff decisionforrenewable electricityasof1July2012andEUR5.0mtoother assets). were related primarilytoheatingequipment(previous year:impairmentchargesofEUR8.0mtothebiomasspilotplantat amounted toEUR15.2m(previous year:EUR15.9m). a mortgagewithmaximumvalueofEUR1.8masintheprevious year. Ownworkcapitalisedduringthe2012/13financialyear interest rateusedforcapitalisationrangedfrom 3.8% –8.5%(previous year:1.5%–8.5%). EUR 116.6m. liabilities. Dür Gross valueon30.09.2011 EURm 2011/12 financialyear l amount *) Net value30.09.2012 Net value30.09.2011 Accumulated amortisation30.09.2012 Impairment losses Accumulated amortisation30.09.2011 Gross valueon30.09.2012 Scheduled amortisation Currency translation differences Revaluation Changes inthescopeofconsolidation Disposals Additions Additions Transfers Disposals Transfers

Smal For leasedandrented equipment, thepresent valueofpaymentobligationsfortheuseheating networks andheatgenera- Prepayments andequipment underconstructionincludedacquisitioncostsofEUR204.0m(previous year:EUR202.2m) relating The impairmenttestingofassetsin2012/13linewithIAS36ledtotherecognition ofimpairmentlossesEUR1.0m,which Land and buildings included land witha value of EUR 67.0m (previous year: EUR 66.2m). As of the balance sheet date, EVN held Additions toproperty, plantandequipmentincludedcapitalisedborrowing costsofEUR6.0m(previous year:EUR6.1m).The 35. Property, plantandequipment The netvalueofproperty, plantandequipmentpledgedas collateralreflected theprior yearlevelandhadacarryingamountof nrohr windparkinBulgariaduetoanunfavourable powerplantduetounfavourable marketconditions,EUR9.8mtotheKavarna balance

sheet date (previous year: EUR 14.7m). The related lease and rental liabilities were recognised under other non-current

Consolidated notes — Notestotheconsolidatedstatementoffinancialposition odilOtherintangibleassets Goodwill 216.4 219.2 210.0 207.2 –9.2 –9.2 0.1 2.8 – – – – – – – EVN Full Report2012/13 –206.8 –221.9 410.1 414.9 193.0 203.3 –14.7 –0.5 –2.4 –3.4 0.0 0.1 2.5 6.2 1.9 – *) Total –216.0 –231.1 626.5 634.2 403.1 410.5 –14.7 –0.5 –2.4 –3.4 0.0 0.1 2.9 2.5 6.2 1.9 135 *)

Financial statements Prepayments 35. Reconciliation of property, Other plant, and equipment plant and equipment Land and Transmission Technical tools and under EURm buildings pipelines equipment Meters equipment construction Total

2012/13 financial year Gross value on 30.09.2012 695.9 3,319.0 2,212.0 195.6 233.0 214.1 6,869.6 Currency translation differences 0.0*) 0.0*) –7.0 0.0*) –0.1 –2.9 –10.0 Changes in the scope of consolidation – – – 0.0*) – – – Additions 11.6 130.2 44.1 12.7 12.8 111.4 322.8 Disposals –1.9 –8.8 –10.4 –5.8 –10.0 –2.5 –39.4 Transfers 5.9 84.9 16.3 0.1 –5.3 –101.7 0.1 Gross value on 30.09.2013 711.5 3,525.2 2,255.0 202.6 230.4 218.3 7,143.1

Accumulated amortisation 30.09.2012 –338.5 –1,774.1 –1,428.5 –128.1 –181.1 –10.1 –3,860.4 Currency translation differences 0.0*) 0.0*) 1.1 0.0*) 0.1 – 1.2 Scheduled depreciation –20.8 –98.0 –76.4 –10.8 –17.3 – –223.2 Impairment losses 0.0*) – –1.0 – – – –1.0 Disposals 1.0 8.3 9.6 5.7 9.6 1.6 35.6 Transfer –0.3 –3.9 –0.4 – 3.7 – –0.9 Accumulated amortisation 30.09.2013 –358.7 –1,867.8 –1,495.5 –133.2 –185.1 –8.5 –4,048.7 Net value 30.09.2012 357.4 1,544.9 783.5 67.5 51.9 204.0 3,009.2 Net value 30.09.2013 352.9 1,657.4 759.5 69.5 45.3 209.8 3,094.3

*) Small amount

Prepayments Other plant, and equipment 2011/12 financial year Land and Transmission Technical tools and under EURm buildings pipelines equipment Meters equipment construction Total Gross value on 30.09.2011 672.1 3,135.1 2,013.8 190.0 218.9 372.2 6,602.1 Currency translation differences 0.0*) 0.0*) 2.7 0.0*) 0.1 4.9 7.7 Changes in the scope of consolidation 1.2 0.4 5.5 0.0*) –0.2 0.0*) 6.9 Additions 21.4 119.7 121.6 10.5 21.1 9.3 303.6 Disposals –9.9 –17.3 –9.2 –5.0 –10.2 –0.1 –51.7 Transfers 10.8 81.1 77.6 0.0*) 3.3 –172.2 0.6 Gross value on 30.09.2012 695.6 3,319.0 2,212.0 195.6 233.0 214.1 6,869.3

Accumulated amortisation 30.09.2011 –320.4 –1,693.9 –1,345.7 –121.7 –171.3 –10.1 –3,663.1 Currency translation differences 0.0*) 0.0*) –0.5 0.0*) 0.0*) – –0.5 Scheduled depreciation –19.2 –94.2 –70.7 –11.2 –18.1 – –213.4 Impairment losses –3.8 –0.8 –12.1 – –0.5 –5.6 –22.8 Disposals 5.3 15.4 4.5 4.8 9.6 – 39.7 Transfer 0.0*) –0.7 –4.2 – –0.8 5.6 0.0*)

Accumulated amortisation 30.09.2012 –338.2 –1,774.1 –1,428.5 –128.1 –181.1 –10.1 –3,860.1 Net value 30.09.2011 351.7 1,441.2 668.1 68.3 47.6 362.0 2,938.9 Net value 30.09.2012 357.4 1,544.9 783.5 67.5 51.9 204.0 3,009.2

*) Small amount

136 EVN Full Report 2012/13 the shares inVerbund AG were therefore accounted forbyapplyingIAS39. policies ofVerbund AG isverylimited.Therequirements forclassification asacontrolling influence(IAS28)are therefore notmetand the votingshares inVerbund AG. Inspiteofthesyndicateagreement, thescopeof possibleinfluenceoverthefinancialandbusiness their directly andindirectly heldshareholdings inVerbund AG. Thisagreement givesthetwocompaniesjointcontrol over26%of amended marketandstockexchangeprices. other comprehensive incometotalledEUR25.3m(previous year:changesofEUR223.6m)andrepresented adjustmentstoreflect active market,i.e.whichare notfreely tradable.The changesinthevalueofmiscellaneousinvestmentsthatwere recognised under EUR 23.0m)andare carriedatamortisedcostlessimpairmentlosses.Theyrepresent shares incompanieswhichare nottradedonan of whichEUR33.5mare usedascollateral.TheotherinvestmentsincludedinthispositionamounttoEUR23.7m(previous year: miscellaneous stakesoflessthan20.0%thatwere notincludedat equity. of equityinthiscompanytotalledEUR78.9mas30September2013. contributions ofthesecompanies(alsosee31.Financialresults). stake ownedbyEVN AGinDevollHydropower ShA. months. by more thanthreeinterim orannualreport withabalancesheetdatethatdoesnotprecede thebalancesheetdateofEVN AG on page167. EVN AG and Wiener StadtwerkeHoldingAG(WSTW)entered intoanagreement andWiener on22September2010forthesyndicationof EVN AG Miscellaneous investmentsincludeshares inlistedcompanieswithamarketvalueofEUR671.1m(previous year:EUR645.8m), The other investments include holdings in affiliates and associates, which are not consolidated due to immateriality, as well as The shares inZOVwere assignedtothefinancingbanks ascollateralforloans(previous year:EUR77.3m).EVN’s proportional share There were nolistedmarketpricesfortheinvestments inequityaccountedinvestees. The developmentofthenetvalueequityaccountedinvesteesin2012/13wassignificantly influencedbythenegativeearnings No impairmentlosseswere recognised toequityaccounted investeesin2012/13(previous year:EconGasatEUR7.8m). The additionstothispositionconsistprimarilyofequitycontributionsSTEAG-EVNWalsum. Thedisposalsincludethesaleof All investmentsinequityaccountedinvesteeswere recognised attheirproportional share ofIFRSincome orlossbasedonan The companiesincludedintheconsolidatedfinancialstatementsat equity are listedonthescheduleofEVN’s investmentsstarting 36. Investmentsinequityaccountedinvesteesandotherinvestments Consolidated notes — Notestotheconsolidatedstatementoffinancialposition EVN Full Report2012/13 137

Financial statements 36. Reconciliation of investments in equity accounted investees and other investments Investments in equity Investments Miscellaneous Total other EURm accounted investees in affiliates investments investments Gross value on 30.09.2012 1,068.4 14.3 404.2 418.4 Additions 69.2 1.5 0.8 2.2 Disposals –30.8 –2.3 0.0*) –2.3 Gross value on 30.09.2013 1,106.9 13.5 404.9 418.4

Gross value on 30.09.2012 –19.7 –6.6 256.8 250.2 Currency translation differences –1.0 – – – Impairment losses – –0.1 –0.4 –0.4 Disposals 30.8 1.3 – 1.3 Proportional share of results 10.0 – – – Dividends –103.9 – – – Changes in equity recognised directly in equity 24.9 – 25.3 25.3 Accumulated amortisation 30.09.2013 –58.9 –5.4 281.7 276.4 Net value on 30.09.2012 1,048.7 7.7 661.0 668.7 Net value on 30.09.2013 1,047.9 8.1 686.7 694.8

*) Small amount

37. Other non-current assets Securities reported under other non-current assets consist mainly of shares in investment funds and serve as coverage for the provisions for pensions and obligations similar to pensions as required by Austrian tax law. The carrying amounts correspond to the fair value as of the balance sheet date. Additions and disposals resulted from the regrouping of assets during 2012/13.

Of the originated loans totalling EUR 39.2m (previous year: EUR 36.4m), E UR 3.5m (previous year: EUR 3.5m) had a remaining term to maturity of less than one year.

Lease receivables and accrued lease transactions result from the project business within the context of PPP projects (see also note 23. Accounting estimates and forward-looking statements). Contract manufacturing resulted in receivables of EUR 503.4m (previous year: EUR 430.7m). The additions also include EUR 1.2m of capitalised borrowing costs (previous year: EUR 0.8m). The capitalisation rates ranged from 0.96% to 5.57% (previous year: 1.58% – 6.03%).

The receivables arising from derivative transactions include the positive fair values of interest and currency swaps.

The remaining other non-current assets include EUR 4.1m (previous year: EUR 5.6m) for the regulatory account that is required by Austrian law. In addition, this item consists primarily of deferred guarantee fees for non-current bank loans.

On 16 July 2012, the Bulgarian regulatory authority, State Energy and Water Regulatory Commission (SEWRC), approved a change in the method used to calculate compensation for the additional costs of renewable electricity and for electricity from highly efficient co-generation plants. This change was valid from 1 July 2012 to 31 July 2013. As specified in the Bulgarian energy act, utility companies are required to purchase electricity from renewable electricity producers during this period. The growing number of new contracts that include network connections to renewable energy producers has led to an increase in volumes and, in turn, to a significant increase in electricity procurement costs for EVN in Bulgaria. Bulgarian law requires the reimbursement of these added costs, principally by end customers. This procedure was amended as of 1 August 2013 and now requires the national electricity company Natsionalna Elektricheska Kompania EAD (NEK) to carry the added costs for renewable electricity and for electricity from highly efficient co-generation plants.

138 EVN Full Report 2012/13 Impairment losses Disposals Transfers Changes inmarketvalue Disposals Additions Net valueon30.09.2013 Net valueon30.09.2012 30.09.2013 Accumulated amortisation Gross valueon30.09.2013 Gross valueon30.09.2012 EURm 37. Reconciliationofothernon-current assets this assetduringthenextfinancialyear. mance ontheactionsanddecisionsofBulgarianregulatory authority.Consequently,there isariskofmaterialadjustmentto money atthistimeaswellthespecific risksassociatedwiththeregulatory asset. with compensationforcostsbytheregulatory authorities.Thediscountratereflects management’s estimateforthepresent valueof are non-current innature (alsosee39.Receivables). of theseadditionalcostswasaccruedasaregulatory assetbasedonmanagement’s estimates. from government-regulatedactivities.Sincethiscompensationishighlyprobable andtherelated costscanbereliably estimated,part sales companyinBulgariatherefore capitalisedaregulatory assettoreflect therighttoreceive compensationforaddedcostsresulting In aletterdated26September2013,SEWRCconfirmedthatEVNshouldgenerallybecompensatedfortheseuncovered costs.The l amount *) 30.09.2012 Accumulated amortisation

Smal EVN incurred additionalcostsofEUR127.1mduringtheperiodfrom 1July2012to312013,whichrequire interimfinancing. The measurement oftheregulatory assetisconnected withuncertaintyduetothedependenceofexpectedfuture perfor The measurement ofregulatory assetsisbasedonthepresent valueoftheexpectedfuture cashflowsand reflects pastexperience The regulatory assets included under miscellaneous receivables totalled EUR 86.8m as of 30September 2013, whereby EUR 33.4m Securities 2. –3.0 –23.5 7139.2 36.4 57.1 77.0 39.2 58.2 36.4 78.2 –1.2 –1.0 –0.2 0.0 0.2 3.7 – *) Other Consolidated notes receivable

financial Loans

5.8 – – – – – –

assets and accrued lease and accruedlease Lease receivables transactions 703.6 673.0 703.6 673.0 –44.3 75.0 — Notestotheconsolidatedstatementoffinancialposition – – – – –36.8 – –46.3 – from derivative transactions Receivables 83.1 83.1 0.0 0.0 0.0 0.0 – – – – Other non-current assets primary energy Non-current reserves 14.6 15.1 14.0 14.6 –0.6 –0.5 0.6 – – – – – EVN Full Report2012/13 Remaining other non-current assets 65861.1 46.5 862.7 46.5 49898.4 14.9 900.1 14.9 31118.2 33.1 15–72.4 –1.5 – – – – –36.8 – –46.5 – Total –1.8 –1.6 0.0 0.2 139 *) -

Financial statements The reconciliation of the future minimum lease payments to their present value is as follows:

37. Terms to maturity of non-current lease receivables and accrued lease transactions EURm

Remaining term to maturity as of 30.09.2013 Remaining term to maturity as of 30.09.2012 < 1 year > 1 year > 5 years Total < 1 year > 1 year > 5 years Total Interest components 33.5 105.0 162.6 301.1 36.9 115.3 139.3 291.5 Principal components 63.0 230.5 410.1 703.6 66.3 235.3 371.4 673.0 Total 96.5 335.6 572.7 1,004.7 103.2 350.6 510.7 964.5

The total of the principal components corresponds to the capitalised value of the lease receivables and accrued lease transactions.

The interest components correspond to the proportionate share of the interest component of the total lease payment and do not represent discounted amounts. The interest components of the lease payments in 2012/13 were reported primarily as interest income on non-current assets.

Current assets

38. Inventories Primary energy reserves consist mainly of coal supplies.

The CO2 emission certificates relate exclusively to certificates purchased to fulfil the requirements of the Austrian Emission Certificate Act, which have not yet been used. The corresponding obligation for any shortfall in the certificates is reported under current provisions (see note 55. Current provisions).

38. Inventories EURm 2012/13 2011/12 Primary energy reserves 41.7 49.5

CO2 emission certificates 0.4 1.0 Raw materials, supplies, consumables and other inventories 27.5 28.5 Customer orders not yet invoiced 38.8 27.1 Total 108.4 106.1

The inventory risk resulting from low inventory turnover and a decline in market prices was reflected in an increase of EUR 3.6m in the valuation adjustment (previous year: increase of EUR 3.7m). This was contrasted by write-ups of EUR 0.3m (previous year: EUR 2.8m). The inventories were not subject to any limitations on disposal or other encumbrances.

39. Trade and other receivables Trade accounts receivable relate mainly to electricity, natural gas and heating customers.

The valuation adjustments to receivables are related primarily to South Eastern Europe. As a rule, receivables in this region may only be written off after a court decision has been issued. The valuation allowance therefore increases over time due to the relatively long waiting period caused by the high number of pending court cases. The valuation allowance rose by EUR 27.6m in 2012/13 (previous year: EUR 9.1m).

140 EVN Full Report 2012/13 for EVN’s ownliabilitiesreflects theprioryearatEUR23.2m. futures, receivables from insurance and prepayments made. The carrying amount of trade and other receivables pledged as collateral accordance with Austrian law (also seenote37. Other non-current assets), receivables related to settlement payments for electricity Thisposition alsoincludesEUR10.2m(previousthe Bulgariangovernment. year:EUR0.0m)forregulatory accountrecognised in right toreceive compensationfortheaddedcostsassociatedwithrenewable electricityinconnectionwithactivitiesregulated by partners represent customerreceivables thatare handledbyEnergieAllianzonbehalf oftheEnergieAllianzpartners. to energysuppliesaswellGroup financingandservicestonon-consolidatedsubsidiaries.Receivablesduefrom EnergieAllianz Other receivables andassets Receivables arisingfrom derivativetransactions Receivables from employees Receivables from affiliates Receivables from partners withinEnergieAllianz Receivables from investments inequityaccountedinvestees Total Tax receivables Other receivables Trade accountsreceivable Financial assets EURm 39. Trade andotherreceivables Total Others Macedonia Bulgaria Germany Austria EURm receivables 39. Allowancesto The structure ofthesecurities portfolioasofthebalancesheetdateisfollows: 40. Securities Other receivables andassetsconsistmainlyofamountingtoEUR53.4m(previous year:EUR25.3m)thatrepresent the Receivables arisingfrom derivativesconsistmainlyofthepositivefairvaluesenergyswapsandinterest rateswaps. Receivables from investmentsinequityaccountedinvesteesandaffiliates ariseprimarilyfrom intragroup transactionsrelated

rs eevbe loac Netreceivables Allowance Gross receivables

482.5 247.3 136.1 12.1 27.2 59.7 Consolidated notes 2012/13 196.5 160.8 26.3 9.4 – – — Notestotheconsolidatedstatementoffinancialposition 285.9 109.8 12.1 86.5 27.2 50.3 rs eevbe loac Netreceivables Allowance Gross receivables 512.8 218.0 109.7 127.3 12.3 45.5 EVN Full Report2012/13 2012/13 2011/12 542.6 565.5 106.3 285.9 22.9 75.3 35.1 25.7 22.9 168.9 126.2 5.2 9.0 31.2 11.5 – – 2011/12 511.3 537.6 343.9 343.9 115.7 26.3 75.0 54.1 28.9 26.3 12.3 45.5 91.8 78.5 4.0 1.4 4.1 141

Financial statements 40. Composition of securities EURm 2012/13 2011/12 Funds 43.9 3.4 Cash funds 40.0 – Other fund products 3.9 3.4 Fixed income securities – – Shares 0.0*) 0.0*) Total 43.9 3.4

*) Small amount

In addition to a gain of EUR 0.2m (previous year: gain of EUR 0.3m) on the sale of securities, an increase of EUR 0.2m was recorded without recognition through profit or loss in 2012/13 (previous year: EUR –0.8m) to reflect the improvement in share prices.

Liabilities

Equity The development of equity in 2012/13 and 2011/12 is shown on page 106.

41. Share capital The share capital of EVN AG totals EUR 330.0m (previous year: EUR 330.0m) and is divided into 179,848,402 (previous year: 179,848,402) zero par value bearer shares.

42. Share premium and capital reserves The share premium and capital reserves comprise appropriated capital reserves of EUR 195.6m (previous year: 195.6m) from capital increases and unappropriated capital reserves of EUR 57.5m (previous year: EUR 57.7m), both in accordance with Austrian stock corporation law.

43. Retained earnings Retained earnings of EUR 2,155.7m (previous year: EUR 2,116.2m) comprise the proportional share of retained earnings attributable to EVN AG and all other consolidated companies from the date of initial consolidation as well as the proportional share of retained earnings from business combinations achieved in stages.

Dividends are based on the profit of EVN AG as reported in the annual financial statements and developed as follows:

43. Reconciliation of EVN AG’s profit for the period EURm Reported profit for the period 2012/13 76.0 Retained earnings from the 2011/12 financial year 0.6 Distributable profit for the period 76.6 Proposed dividend –74.8 Retained earnings for the 2013/14 financial year 1.8

Liabilities do not include the proposed dividend of EUR 0.42 per share for the 2012/13 financial year, which will be recommended to the Annual General Meeting.

The 84th Annual General Meeting on 17 January 2013 approved a proposal by the Executive Board and the Supervisory Board to distribute a dividend of EUR 75.0m, or EUR 0.42 per share, to the shareholders of EVN AG for the 2011/12 financial year. The dividend payment to shareholders was made on 25 January 2013.

142 EVN Full Report 2012/13 Investmentsinequityaccountedinvestees Remeasurements IAS 19 Disposal oftreasury shares Cashhedges flow Disposal oftreasury shares Purchase oftreasury shares Increase incapital stock employees inplaceofaspecialpaymentcalledforbycompanyagreement. 178,356,673 shares (previous year:179,378,364shares). by the83 purchase priceofEUR5.7mandamarket6.0m).Thisshareber 2012: buybackwasbasedonaprogramme approved 554,530 shares or0.31%ofshare capital)forEUR11.3mandamarketvalueof11.7mas of thebalancesheetdate(30Septem- hedges thatare recorded directly inequity. gungs GmbHinconnectionwiththeshares heldinVerbund (AFSfinancialinstruments)as wellasthecomponentsofcashflow 30.09.2013 30.09.2012 30.09.2011 outstanding shares 45. Reconciliationofthenumber Total Availableinstruments forsalefinancial Results recognised underothercomprehensive income EURm 44. and theproportional share ofchangesintheequityinvestmentsaccountedinvestees. The numberofshares outstandingdevelopedasfollows: The item“Non-controlling interest” comprisesthenon-controlling interests intheequityoffullyconsolidatedsubsidiaries. 46. Non-controlling interests EVN AG isnotentitledtoanyrightsarisingfrom treasury shares. Inparticular, theseshares are notentitledtodividends. The weightedaveragenumberofshares pershare, outstanding,whichisusedasthebasisforcalculatingearnings equals A totalof1,039,000shares, or0.58%ofshare capital, were repurchased duringthereporting year(30September2012: 45. Treasury shares The position“Investmentsinequityaccountedinvestees“theabovetableincludeschangesrecognised byWEEVBeteili- The valuationreserve containschangesinavailableforsalesfinancialinstrumentsandcashflowhedges,IAS19remeasurements 44. Valuation reserve Valuation reserve according toIAS39 rd Annual GeneralMeetingofEVN AG on19January2012.In2012/13,73,010treasury shares were soldfordistributionto

Consolidated notes Before tax 5. 4. 112.1 –46.2 158.4 8. 7. 1. 5. 6. 193.0 –64.3 257.3 212.0 –70.6 282.6 –27.0 8. 03–05–721. –42.8 14.4 –57.2 –60.5 20.3 –80.8 –16.5 Zero parvalueshares — Notestotheconsolidatedstatementoffinancialposition 2012/13 179,878,402 179,878,402 179,878,402 Tax . 1. –16.0 –12.3 4.1 2. –62.0 –27.0 – – – – – After tax Treasury shares –1,843,612 –1,039,000 Before tax –877,622 –398,260 –554,530 2. 4. 76.2 –46.0 122.1 75,168 73,010 EVN Full Report2012/13 2011/12 Tax Outstanding shares . –12.0 4.0 –62.0 – 178,034,790 179,000,780 179,480,142 –1,039,000 –554,530 After tax 75,168 73,010 143

Financial statements Non-current liabilities

47. Non-current loans and borrowings Non-current loans and borrowings comprised the following as of the balance sheet date:

Nominal Carrying amount Carrying amount Fair value 47. Breakdown of non-current loans interest rate 30.09.2013 30.09.2012 30.09.2013 and borrowings (%) Term Nominal amount EURm EURm EURm Bonds – – – 707.0 1,028.6 792.2 JPY bond 5.200 1994–2014 8.0bn JPY – 81.7 – CHF bond 3.625 2009–2014 250.0m CHF – 206.6 – EUR bond 5.000 2009–2016 28.5 EURm 28.4 28.4 31.1 EUR bond 5.250 2009–2017 150.0 EURm 149.1 148.9 170.1 EUR bond 5.250 2009–2019 30.0 EURm 29.6 29.5 34.8 EUR bond 4.250 2011–2022 300.0 EURm 287.1 285.6 330.0 JPY bond 3.130 2009–2024 12.0bn JPY 91.1 126.3 99.5 EUR bond 4.125 2012–2032 100.0 EURm 97.3 97.1 101.4 EUR bond 4.125 2012–2032 25.0 EURm 24.5 24.4 25.3 Bank loans (incl. promissory note loans) 0.34 – 7.08 until 2042 – 864.4 904.6 864.4 Total – – – 1,571.4 1,933.3 1,656.6

The maturity structure of the non-current loans and borrowings is as follows:

47. Maturity of non-current loans and borrowings Remaining term to maturity as of 30.09.2013 Remaining term to maturity as of 30.09.2012 EURm < 5 years > 5 years Total < 5 years > 5 years Total Bonds 177.5 529.5 707.0 465.6 563.1 1,028.6 thereof fixed interest 177.5 438.5 616.0 383.8 436.7 820.6 thereof variable interest – 91.1 91.1 81.7 126.3 208.1 Bank loans 467.8 396.6 864.4 572.6 332.1 904.7 thereof fixed interest 288.8 305.1 593.9 402.0 240.4 642.4 thereof variable interest 178.9 91.5 270.5 170.6 91.7 262.3 Total 645.3 926.2 1,571.4 1,038.2 895.2 1,933.3

Bonds All bonds involve bullet repayment on maturity.

The JPY bond and the CHF bond, both of which mature in 2014, were reclassified to current financial liabilities.

The foreign currency bonds are hedged by means of cross currency swaps.

The bonds are carried at amortised cost. Foreign currency liabilities are translated at the exchange rate in effect on the balance sheet date. In accordance with IAS 39, hedged liabilities are adjusted to reflect the corresponding change in the fair value of the hedged risk in cases where hedge accounting is applied. The resulting change in the bond liability is largely offset by a contrary development in the fair value of the swaps.

The fair value was calculated on the basis of available market information for the respective bond price and the exchange rate as of the balance sheet date.

144 EVN Full Report 2012/13 of EUR2.0m(previous year: EUR0.1m). distribution ofprofit from MacedoniaintheamountofEUR20.3m(previous year: EUR0.9m)wouldleadtoanadditionaltaxliability be utilisedwithinaforeseeable period.Ofthistotal,EUR3.6mwillexpire duringthenextfiveyears(previous year:EUR3.3m).A Other non-current provisions Provisions forseverance payments Provisions forobligationssimilartopensions Total Provisions forpensions EURm 49. Non-current provisions Deferred taxeson30.09.2013 Deferred taxeson01.10.2012 EURm 48. Changesindeferred taxes Total Other deferred tax liabilities instruments Financial Non-current assets Deferred taxliabilities Other deferred tax assets Tax losscarryforwards Employee-related provisions Deferred taxassets EURm 48. Deferred taxes – Changesresulting from currency translation reserve andotherchanges – Changesindeferredequityfrom taxesrecognisedthevaluationreserve directly – Changesindeferred taxesrecognised throughandloss profit in October2012. Austrian Environment andWater IndustryFund.ThispositionalsoincludestheEUR121.5mpromissory noteloansthatwere issued thereof deferred taxliabilities thereof deferred taxassets 49. Non-current provisions Deferred taxassetsofEUR 4.9m(previous year:EUR4.6m)were notrecognised forlosscarryforwards thatare notexpectedto Deferred taxesdevelopedasfollows: 48. Deferred taxliabilities Accrued interest expenseisincludedunderothercurrent liabilities. The loans consist of general borrowings from banks, which are subsidised in part by interest and redemption grants from the Bank loans

Consolidated notes — Notestotheconsolidatedstatementoffinancialposition EVN Full Report2012/13 2012/13 2012/13 2012/13 2012/13 591.0 209.5 263.6 111.5 –26.3 –44.3 –29.4 –10.3 82.1 93.3 82.1 90.6 27.3 85.6 71.7 –9.5 4.8 0.3 0.3 2011/12 2011/12 2011/12 490.7 163.8 –67.3 –67.3 132.2 250.1 119.2 –14.9 –20.6 –38.7 –25.9 93.3 93.3 –3.4 83.5 24.9 16.6 76.9 74.1 145

Financial statements The amounts reported for the provisions for pensions and for obligations similar to pensions as well as provisions for severance payments were generally calculated on the basis of the following parameters: – Interest rate 3.50% p. a. (previous year: 4,00% p. a.) – Remuneration increases of 2.50% p. a.; in subsequent years 3.00% p. a. (previous year: remuneration increase 3.00% p. a., in subsequent years 3.00% p. a.) – Pension increases 2.50% p. a.; in subsequent years 3.00% p. a. (previous year: pension increase 3.00% p. a., in subsequent years 3.00%) – Austrian mortality tables (“Rechnungsgrundlagen AVÖ 2008-P – Rechnungsgrundlagen für die Pensionsversicherung – Pagler&Pagler”), also used in the previous year

49. Reconciliation of provisions for pensions and obligations similar to pensions EURm 2012/13 2011/12 Present value of pension obligations (DBO) on October 1 275.0 248.0 + Service costs 1.2 1.9 + Interest costs 8.3 12.3 – Pension payments –14.4 –18.4 +/– Actuarial loss/gain from changes in financial assumptions 20.8 31.2 Present value of pension obligations (DBO) on September 30 290.9 275.0

As of 30 September 2013, the weighted average remaining term equalled 14.1 years for the pension obligations and 17.1 years for the obligations similar to pensions.

49. Reconciliation of the provision for severance payments EURm 2012/13 2011/12 Present value of severance payment obligations (DBO) on October 1 83.5 76.0 + Changes in scope of consolidation – –0.5 + Service costs 2.1 2.6 + Interest costs 2.3 3.7 – Pension payments –2.5 –6.1 +/– Actuarial loss/gain from changes in financial assumptions 5.2 7.8 Present value of severance payment obligations (DBO) on September 30 90.6 83.5

As of 30 September 2013, the weighted average remaining term of the severance payment obligations equalled 11.3 years.

A change in the actuarial parameters (ceteris paribus) would have the following effect on the provisions for pensions and obligations similar to pensions as well as the provisions for severance payments:

49. Sensitivity analysis for provisions for pensions and obligations similar to pensions 30.09.2013 30.09.2012

Decrease in Increase in Decrease in Increase in Change in assumption/ assumption/ assumption/ assumption/ Parameters/assumptions assumption change in DBO change in DBO change in DBO change in DBO Interest rate 0.50% 6.91% –6.16% 6.65% –5.95% Remuneration increases 1.00% –2.42% 2.71% –2.30% 2.59% Pension increases 1.00% –9.91% 6.35% –9.60% 11.53% Remaining life expectancy 1 year –4.40% 4.46% – –

146 EVN Full Report 2012/13 because thisparameterhasonlyanimmaterialeffect ontheliability. between theindividualactuarialparametersare nottakenintoaccount. reflected the calculation of the actual obligation. The analytical capacity of this method is limited because the interdependencies during theexamination,whileothervariablesremained constant(ceterisparibus).Thecalculationofthechangedobligation disposal aswellprovisions forenvironmental risksandrelated tocontaminated sitesandotherobligations. reported underprocess costsandrisks.Environmental anddisposalrisksprimarily encompasstheestimatedcostsfordemolitionor access involveprovisions forrents togainaccessthird-party facilitiesinBulgaria. Remuneration increases Interest rate severance payments 49. Sensitivityanalysisforprovisions for Carrying amounton01.10.2012 EURm 49. Reconciliationofothernon-current provisions l amount *) Carrying amounton30.09.2013 Carrying amounton30.09.2013 Carrying amounton01.10.2012 EURm 50. Deferred incomefrom networksubsidies Reversal Additions Changes inthescopeofconsolidation Interest expense Use Additions Transfers

Smal The sensitivity analysis was carried out separately for each key actuarial parameter. Only one parameter was changed ata time With respect totheseverancecompensationobligations,asensitivityanalysiswasnotcarriedoutforremainingWith life expectancy The followingtableshowsthedevelopmentofdeferred incomefrom networksubsidies: 50. Deferred incomefrom networksubsidies Various legalproceedings and lawsuits,whichforthemostpartarisefrom operatingactivitiesandare currently pending,are The provision foronerous contractscoversobligations from themarketingofEVN’s ownelectricityproduction. Rentsfornetwork Of thetotalsubsidies,EUR463.7m (previous year:EUR433.6m) willnotberecognised asincomewithinoneyear. Parameters/assumptions anniversary bonuses Service 0066.8 20.0 01127.0 20.1 –0.7 0.4 0.4 –

Consolidated notes

contracts Onerous

54.0 6.2 – – assumption Change in 1.00% 0.50% network access Rents for — Notestotheconsolidatedstatementoffinancialposition 051. 33.0 14.7 10.5 –0.8 9.6 0.1 1.6 – change inDBO assumption/ assumption/ Decrease in 1.6 12.57% –10.96% .7 –4.99% 5.37% Process costs and risks 30.09.2013 Construction usde Investmentsubsidies subsidies 12.8 –2.1 . 28.8 4.0 0.1 – 453.0 425.3 –35.3 change inDBO 63.0 assumption/ Increase in – Environmental and disposal risks –1.3 1.0 3.7 0.8 EVN Full Report2012/13 change inDBO assumption/ assumption/ Decrease in 1.1 13.02% –11.31% non-current 50.5 44.2 10.8 –4.5 provisions .2 –5.12% 5.52% Other – 30.09.2012 –0.3 . 132.2 2.9 . 209.5 4.2 1.5 – – change inDBO assumption/ assumption/ Increase in Total Total 503.5 469.5 –39.8 48.8 19.9 73.8 7.8 0.8 147 –

Financial statements 51. Other non-current liabilities Leases are related mainly to the long-term utilisation of heating networks and heat generation plants.

The accruals from financial transactions are related to present value advantages from lease-and-lease-back transactions in connection with electricity procurement rights from the Danube power plants.

Liabilities from derivative transactions include the negative fair values of hedging transactions, which are partially offset by contrary changes in bond liabilities.

The remaining other non-current liabilities include, among others, accrued tax liabilities related to the tax group in Austria, accrued long-term electricity delivery obligations and non-current prepayments made by customers.

51. Other non-current liabilities EURm 2012/13 2011/12 Leases 21.5 23.4 Accruals of financial instruments 3.9 3.4 Liabilities from derivative transactions 16.6 16.2 Remaining other non-current liabilities 9.5 6.9 Total 51.5 49.9

51. Term to maturity of other non-current liabilities EURm

Remaining term to maturity as of 30.09.2012 Remaining term to maturity as of 30.09.2011 < 5 years > 5 years Total < 5 years > 5 years Total Leases 9.2 12.3 21.5 9.6 13.8 23.4 Accruals of financial instruments 3.1 0.8 3.9 2.1 1.3 3.4 Liabilities from derivative transactions 3.2 13.4 16.6 5.5 10.8 16.2 Remaining other non-current liabilities 3.7 5.8 9.5 2.7 4.2 6.9 Total 19.1 32.4 51.5 19.9 30.0 49.9

Current liabilities

52. Current loans and borrowings Bank overdrafts are included under cash and cash equivalents in the consolidated statement of cash flows.

52. Current loans and borrowings EURm 2012/13 2011/12 Bank loans 91.4 21.4 Bonds 264.5 – Bank overdrafts and other current loans 34.4 28.0 Total 390.3 49.4

Loans totalling EUR 91.4m were reclassified to current financial liabilities because they are now due within one year.

The bond liabilities are due on 20 February 2014 (CHF bond) and 1 September 2014 (JPY bond) and were therefore reclassified from non-current to current. Based on previously fixed exchange rates, these bonds represent financial liabilities of EUR 169.1m (CHF bond) and EUR 65.6m (JPY bond) that are payable in 2014.

148 EVN Full Report 2012/13 Additions Additions Use electricity futures. that are includedonaproportionate basis. ment ofelectricity. behalf oftheEnergieAllianz partners. balance sheetdate(previous year:EUR2.4m). a voluntaryearlyretirement programme foremployees.Theprovisions forlegallybindingagreements totalledEUR2.6masofthe decision inBulgaria. utmr equipment. customer Carrying amounton30.09.2013 Carrying amounton01.10.2012 EURm 55. Reconciliationofcurrent provisions Total Other taxesandduties Corporate incometax Value addedtax Energy taxes EURm 53. Taxes payable Prepayments received servedtocoverthecostsofelectricity,naturalgasandheating suppliesaswelltheinstallationof The otherfinancialliabilitiesconsistprimarilyofemployee-related liabilities,depositsreceived andcompensation payments for The liabilitiestoaffiliates involve companiesthatare notincludedthrough fullconsolidation aswellbalanceswithjointventures Liabilities toinvestmentsinequityaccountedinvesteesconsist primarily ofamountsduetoe&tforthedistributionandprocure- The liabilitiestoEnergieAllianzpartnersr 56. Othercurrent liabilities Onerous contractsincludeprovisions forsales-related transactionsinconnectionwithpowerplantsandthesaleofenergy. The provisions forpersonnelentitlementscomprisespecialpaymentsnotyetdue,outstandingleaveandliabilitiesresulting from 55. Current provisions The increase intradepayablesresulted, aboveall,from therequired refund ofnetworkaccessfeesbasedonasupreme court Trade payablesincludeobligationsresulting from outstandinginvoicesamountingtoEUR138.6m(previous year:EUR160.2m). 54. Trade payables The liabilitiesrelating tosocialsecuritycontributionscomprise amountsduetosocialinsurancecarriers. Taxes payableasofthebalancesheetdatecomprisefollowing: 53. Taxes payable

esult from theinvoicingof customers’receivables, whichishandledbyEnergieAllianzon Consolidated notes entitlements Personnel 2. –14.0 –26.4 4512.6 16.3 64.5 61.8 9210.3 29.2 — Notestotheconsolidatedstatementoffinancialposition otat Restructuring contracts Onerous –1.0 1.5 1.3 1.2 EVN Full Report2012/13 2012/13 2012/13 Other current provisions 76.8 11.4 19.0 19.2 27.1 1. –59.3 –17.8 14.1 26.3 5.7 2011/12 Total 84.9 92.7 87.0 66.9 12.9 13.4 29.1 31.5 149

Financial statements 56. Other current liabilities EURm 2012/13 2011/12 Financial liabilities Liabilities to partners within EnergieAllianz 5.9 9.6 Liabilities to investments in equity accounted investees 22.4 21.3 Liabilities to affiliates 21.8 20.6 Deferred interest expenses 21.9 18.6 Liabilities arising from derivative transactions 6.0 4.3 Other financial liabilities 29.1 55.2 107.1 129.6 Other liabilities Prepayments received 67.7 39.9 Liabilities relating to social security 10.2 11.9 77.8 51.7 Total 184.9 181.3

150 EVN Full Report 2012/13 Investments Liabilities Total assets Interest expense thereof revaluation equity accountedinvestees Carrying valueofinvestments in Interest income thereof impairment losses Goodwill Financial resultsFinancial accounted investees Income from investments inequity EBIT margin (%) Depreciation andamortisation Operating expenses Internal revenue (betweensegments) 2) 1) Profit before incometax Results from operatingactivities(EBIT) EBITDA Total revenue External revenue EURm 57. Segmentreporting In intangibleassetsandproperty, plantandequipment were prioryearfigures adjusted(seeReportinginaccordance withIFRSonpage108) The Segment reporting 1) 2) 1) 1) 1) 1)

1) Consolidated notes 1) 2012/13 114.3 –46.3 600.8 849.1 389.7 –43.4 –27.9 –76.8 –55.9 –13.9 — Notestotheconsolidatedstatementoffinancialposition,Segmentreporting 37.5 79.8 29.8 34.6 9.6 0.6 8.4 Generation – – – 2011/12 135.1 –17.7 –44.5 –75.7 –11.5 538.4 820.5 372.9 –15.0 14.8 59.3 94.8 16.0 11.0 40.3 3.3 0.2 2.7 – – –1,029.4 2012/13 1,082.4 1,038.8 428.6 516.5 –18.7 –16.0 –28.2 37.1 53.1 26.2 43.7 30.1 –0.6 –9.6 Energy Trade and 8.9 0.2 5.4 3.4 – Supply –1,094.0 2011/12 1,128.5 1,082.2 413.5 624.9 –16.4 10.7 18.1 34.5 –1.7 –4.2 –7.5 45.7 46.3 30.1 –4.5 0.6 5.4 1.6 – 2012/13 1,267.0 1,797.8 Network Infrastructure –100.7 –284.6 101.4 120.4 221.1 505.7 176.4 443.8 –19.0 –21.2 61.9 23.8 –0.2 0.3 1.8 – – – Austria 2011/12 1,214.2 1,698.4 –100.1 –300.6 EVN Full Report2012/13 20.5 – 102.2 202.3 502.9 144.8 438.2 –23.2 81.6 –0.6 64.7 20.3 0.2 1.8 – – – 2012/13 1,007.7 1,050.2 1,384.9 1,007.3 –890.6 117.1 161.4 –65.8 –27.5 –27.9 23.7 51.2 South EastEurope 82.4 0.6 0.4 5.1 Energy Supply – – – – 2011/12 1,250.0 –859.9 108.8 968.7 –27.6 935.2 161.4 968.6 –63.5 –28.5 17.7 45.3 –2.5 90.3 0.8 0.1 4.7 151 – – –

Financial statements 57. Segment reporting Strategic Investments EURm Environmental Services and Other Business Consolidation Total

2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 2012/13 2011/12 External revenue 227.2 314.9 3.3 2.3 – – 2,755.0 2,846.5 Internal revenue (between segments) 21.1 20.8 64.7 63.5 –271.5 –290.2 – – Total revenue 248.4 335.7 68.0 65.8 –271.6 –290.2 2,755.0 2,846.5 Operating expenses1) –209.7 –256.6 –75.7 –73.2 269.5 288.2 –2,297.4 –2,371.9 EBITDA1) 38.7 79.0 –7.7 –7.4 –2.1 –2.0 457.6 474.5 Depreciation and amortisation –28.9 –27.2 –1.9 –1.7 2.1 2.0 –239.1 –251.3 thereof impairment losses –0.2 –0.7 – – – – –1.0 –23.3 thereof revaluation – – – – – – – – Results from operating activities (EBIT)1) 9.8 51.9 –9.6 –9.1 – – 218.5 223.2 EBIT margin (%)1) 3.9 15.4 –14.1 –13.8 – – 7.9 7.8 Income from investments in equity accounted investees 11.8 12.4 60.3 76.0 – – 10.0 87.0 Interest income 20.1 24.9 34.8 35.6 –28.0 –31.4 28.4 30.9 Interest expense1) –20.4 –26.1 –35.1 –38.5 27.9 31.3 –100.1 –104.4 Financial results1) 12.1 11.7 88.7 101.2 –8.3 –9.3 –38.1 36.5 Profit before income tax1) 21.8 63.5 79.1 92.1 –8.3 –9.3 180.3 259.7 Goodwill 41.5 41.5 – – – – 210.0 210.0 Carrying value of investments in equity accounted investees 80.2 78.5 551.9 551.4 – – 1,047.9 1,048.7 Total assets 1,468.9 1,472.4 2,887.2 2,718.8 –1,802.4 –1,721.8 7,102.1 6,863.2 Liabilities 1,059.3 1,054.0 1,342.7 1,326.8 –1,712.9 –1,632.4 4,035.6 3,849.5 Investments2) 12.0 22.7 3.5 4.7 –5.8 –0.3 328.4 308.3

1) The prior year figures were adjusted (see Reporting in accordance with IFRS on page 108) 2) In intangible assets and property, plant and equipment

152 EVN Full Report 2012/13 l amount 1) *) Total Austria Non-current assets 57. Total Others Macedonia Bulgaria Germany Austria 57. Segmentinformationbycountry–Revenue Total Others Environmental Services Heat Natural gas Electricity 57. Segmentinformationbyproducts –Revenue Germany Bulgaria Macedonia Others

Differ Smal Segment informationbycountry– ences totheprioryeardataare attributabletoachangeinthepresentation bycountry. 1)

EURm 1)

Intangible assets 397.6 109.9 190.3 41.8 55.6 30.09.2013 0.0 *) and equipment Property, plant 3,094.3 2,225.2 100.3 490.0 274.8 Consolidated notes 4.1 EURm EURm Intangible assets EVN Full Report2012/13 2012/13 2012/13 403.1 115.0 189.5 ,5. 2,846.5 2,755.0 ,5. 2,846.5 2,755.0 ,0. 1,648.7 1,602.9 1,921.8 1,918.1 30.09.2012 41.9 56.7 — Segmentreporting 0.0 412.9 593.9 227.2 137.5 373.2 54.2 91.2 98.8 *) and equipment Property, plant 2011/12 2011/12 3,009.2 2,146.7 388.4 577.5 161.4 119.5 314.9 123.8 366.6 109.3 476.7 272.0 70.4 4.5 153

Financial statements 57. Notes to segment reporting The segments of business cover the following activities:

Business areas Segments Activities

Energy business Generation Electricity generation from thermal sources and renewable energies at Austrian and international locations

Network Infrastructure Operation of regional electricity and natural gas networks as well as Austria cable TV and telecommunications networks

Energy Supply Operation of electricity networks and electricity sales to end customers South East Europe in Bulgaria and Macedonia, heat generation and sale in Bulgaria, electricity production in Macedonia, construction and operation of natural gas networks in Croatia, energy trading throughout the entire region

Environmental services Environmental Services Drinking water supply, wastewater disposal and thermal waste business incineration in Austria, combined cycle heat and power co-generation plants in Moscow as well as international project business

Other business activities Strategic Investments and Strategic and other investments, corporate services Other Business

Principle of segment allocation and transfer pricing Subsidiaries are allocated directly to their respective segments. EVN AG is allocated to the segments on the basis of data from the cost accounting system.

The transfer prices for energy between the individual segments are based on comparable prices for special contract customers, and thus represent applicable market prices. For the remaining items, pricing is based on cost plus an appropriate mark-up.

Reconciliation of segment results at the Group level Services performed between segments are eliminated in the consolidation column. The results in the “total” column reflect the amounts shown in the consolidated statement of operations.

Group disclosures IFRS 8 requires additional segment information classified by products (external revenues from customers broken down by products and services) and countries (external revenues from customers and non-current assets broken down by countries) if this information is not provided as part of the segment reporting.

Information on transactions with major external customers is required only if these transactions amount to 10.0% or more of a company’s external revenues. EVN has no transactions with customers that meet this criterion because of its large number of customers and diverse business activities.

The allocation of segment information by country is based on the headquarters of the companies.

154 EVN Full Report 2012/13 changes intheremaining terms. (previous year:EUR9.0m).Theyear-on-year declineintheinterest VaR asof30September2013 resulted from marketchangesand approach). Theinterest rate VaR, including the hedging instruments used by EVN, equalled EUR 7.1m as of 30 September 2013 dure calculatestheVaR withaconfidencelevelof99.0%forone dayaccording tothevariance-covariance method(delta-gamma interest ratefinancialinstruments. mix offixedandvariableratefinancialinstruments.Thevaluation process distinguishesbetweenfixedinterest rate andvariable financial instruments (also see note the regular monitoringofinterest rateriskandcompliancewithlimitsaswellhedgingstrategiesthatincludetheuse ofderivative changes in the market interest rate could adversely affect interest income and expense as well as equity. This riskisminimised through activities. expenses were addedtoandnon-cashincomewassubtractedfrom profit before tax. cash inflowsandoutflows.Theconsolidatedstatementofflowsispresented inaccordance withtheindirect method.Non-cash (previous year:EUR2.2m). EUR 0.3m). to non-controlling interests (inRBGandBUHO)were reported undernetcashflowfrom financingactivities. EUR 10.4m).Theseproceeds resulted inagainofEUR 0.0m(previous year:gainofEUR1.9m). amounted toEUR26.6m(previous year:EUR28.1m),andinterest paidtotalledEUR55.4m(previous year:EUR56.4m). dividend paymentsreceived forthe2012/13financialyeartotalledEUR131.1m(previous year:EUR119.2m).Interest received Bank overdrafts Cash atbanks Cash onhand Total Cash EURm 57. Cashandcashequivalents EVN monitorsinterest rateriskthrough sensitivityanalyses,amongotherswithadaily value-at-risk(VaR) calculation.Thisproce- EVN definesinterest raterisk astheriskthatfluctuationsinfairvalueorfuture cashflowsofafinancialinstrument dueto Interest raterisk 59. Riskmanagement Dividends received, interest received andinterest paidwere allocatedtocashflowfrom operatingactivities.Cashflowsfrom Income taxpaymentsofEUR28.3m(previous year:EUR28.9m)were reported separatelyundernetcashflowfrom operating The consolidatedstatementofcashflowsshowsthechangesinandequivalentsduringreporting yearasaresult of 58. Consolidatedstatementofcashflows Other information The share ofcashandequivalentsheldbycompaniesincludedthrough proportionate consolidationamountedtoEUR–5.5m The cash and cash equivalents surrendered in connection with business combinations amounted to EUR 0.0m (previous year: Dividend paymentsofEUR75.0m(previous year:EUR73.6m)toEVN AG shareholders andEUR36.7m(previous year:EUR38.4m) Proceeds from thedisposalofintangibleassetsand property, plantandequipmentamountedtoEUR3.4m(previous year:

9. Financial instruments). In order to manage interest rate risk, EVN works to achieve a balanced Consolidated notes — Segmentreporting, Otherinformation EVN Full Report2012/13 2012/13 2012/13 224.8 258.7 259.2 –34.4 0.5 2011/12 134.1 161.8 162.1 –28.0 0.4 155

Financial statements Foreign exchange risk For EVN, the risk to profit or loss arising from fluctuations in foreign exchange rates arises from transactions carried out in currencies other than the euro.

EVN is exposed to foreign exchange risk on receivables, liabilities, and cash and cash equivalents that are not held in the Group’s functional currency. The most significant drivers of foreign exchange risk for EVN are the bonds issued in Japanese yen (JPY) and Swiss francs (CHF). Foreign exchange risk is managed by way of the central compilation, analysis and management of risk positions, and by hedging the bonds denominated in foreign currencies through cross currency swaps (see notes 47. Non-current loans and borrowings and 9. Financial instruments).

The foreign exchange VaR, including the effects of hedges, totalled EUR 0.03m as of 30 September 2013 (previous year: EUR 0.02m) and is still immaterial.

Other market risks EVN defines other market risks as the risk of price changes resulting from market fluctuations in primary energy, electricity supply and procurement, and securities.

In EVN’s energy trading activities, energy trading contracts are entered into for the purpose of managing price risk. Price risks result from the procurement and sale of electricity, natural gas, coal, oil, biomass and CO2 emission certificates. Forward and future contracts and swaps are used to hedge these price risks.

58. Price hedging in the Energy business EURm

2012/13 2011/12

Nominal volumes Fair values Nominal volumes Fair values Purchases Disposals Positive Negative Net Purchases Disposals Positive Negative Net Futures 39.8 –22.2 2.0 –0.8 1.2 46.0 –25.8 2.7 –1.9 0.7 Forwards 154.0 –43.3 6.8 –12.6 –5.9 118.2 –99.7 12.4 –14.6 –2.1

The sensitivity of measurement to market prices is discussed below. Sensitivity is calculated under the assumption that all other parameters remain unchanged. Furthermore, these derivatives serve as hedging instruments within the context of cash flow hedges. The analysis does not include derivatives that are related to the receipt or delivery of non-financial items in accordance with the company’s expected purchase, sale or usage requirements (own use) and which therefore are not reported as financial instruments in accordance with IAS 39.

In the event of a 10.0% change in market prices as of the balance sheet date, the effects of the derivatives on equity would be EUR 6.6m (previous year: EUR 15.1m).

The price risk for securities results from fluctuations on the capital markets. The most significant securities position held by EVN is its investment in Verbund AG. The price risk VaR for the Verbund AG shares held by EVN as of the balance sheet date was EUR 28.4m (previous year: EUR 29.9m).

Liquidity risk Liquidity risk represents the risk of not being able to raise the required financial resources to settle liabilities on their due date as well as the inability to raise the necessary liquidity at the expected terms and conditions. EVN minimises this risk by means of short-term and long-term financial planning. In concluding financing agreements, special attention is paid to managing the terms to maturity in order to achieve a balanced maturity profile and thus avoid the bundling of repayment dates. The EVN Group uses cash pooling to equalise liquidity balances.

156 EVN Full Report 2012/13 before atransactionisentered intoif thepartner’s credit ratingisinadequate. pose, andthebusinessvolumeis limitedinaccordance with theratingandprobability ofdefault.Sufficient collateralisrequired credit ratings(includingStandard standingofitsbusinesspartners.External &Poor’s, Moody’s andKSV1870)are usedforthispur inherent to all agreements with delayed payment terms or fulfilment at a later date. To limit default risk, the company evaluates the Total Bonds 2011/12 financialyear Total Bonds EURm 59. Terms tomaturityofnon-current loansandborrowings Cash ofhedgeditems flows 2011/12 financialyear 2012/13 financialyear Cash ofhedgeditems flows 2012/13 financialyear EURm 59. Expectedoccurrence ofcashflows term ofmore thanfiveyears. or less,EUR–10.2m(previous year:EUR34.6m)withatermofonetofiveyears,and–14.5m(previous year:EUR5.9m)witha of EUR–28.8m(previous year:EUR32.8m)from interest compriseEUR–4.1m(previous year:EUR–7.7m) withatermofoneyear of thebalancesheetdate(previous year:56.5%)andunderscores EVN’s soundcapitalstructure. year: EUR175.0m)asofthebalancesheetdate.Theliquidityriskwastherefore extremely low.Thegearingratioequalled50.9%as unused linesofcredit totallingEUR500.0m)and175.0mofcontractuallyagreed andunusedbilaterallinesofcredit (previous year: EUR165.5m).Moreover, EVNhadEUR500.0mofcontractuallyagreed andunusedsyndicated linesofcredit (previous year: Non-current bankloans Non-current bank loans Cash from flows hedging instruments Cash from flows hedging instruments Profit/Loss Profit/Loss Credit anddefaultriskrepresents theriskofalosswhenbusinesspartnersfail tomeettheircontractualobligations.Thisriskis Credit risks The nominalvalueofderivativefinancialliabilitiesin2012/13amountedtoEUR544.2m(previous year:EUR579.4m).Cashflows As ofthebalancesheetdate,cashandshort-termsecuritiestotallingEUR303.1mwere availabletocoverliquidityneeds(previous

Carrying amount Carrying amount 1,933.3 1,571.4 1,028.6 707.0 904.6 864.4 payment flows payment flows payment flows payment flows

Total Total Total Total –418.0 –387.3 2,412.6 2,068.4 1,348.5 1,091.0 1,064.1 13.2 15.7 53.3 57.9 977.5 < 1year < 1year < 1year < 1year –236.0 201.2 176.7 126.5 149.4 –30.6 Consolidated notes 51.8 50.2 24.0 64.8 –4.4 –4.8 Contractuallystipulatedpaymentflows Contractuallystipulatedpaymentflows Contractually stipulatedpaymentflows Contractually stipulatedpaymentflows EVN Full Report2012/13 1–5 years 1–5 1–5 years 1–5 1–5 years 1–5 1–5 years 1–5 1,106.7 –295.7 734.8 571.1 319.3 415.4 535.6 –94.8 19.7 60.9 –7.1 –6.7 — Otherinformation > 5years > 5years > 5years > 5years 1,104.7 1,157.0 725.6 721.4 435.5 379.1 –91.8 –56.5 –2.1 –1.1 –2.7 –0.2 157 -

Financial statements EVN monitors credit risk and limits default risk for financial receivables in the treasury area (e.g. investments, financial and interest derivatives) and for derivatives and forward transactions which are concluded to hedge the risks connected with EVN’s energy business or are related to end customers and other debtors in the company’s core business.

In order to reduce credit risk, hedging transactions are entered into only with well-known banks that have good credit ratings. EVN also ensures that funds are deposited at banks with the best possible credit standing based on international ratings.

The default risk for customers is monitored separately at EVN and supported primarily by ratings and values derived from experience. Credit risks are taken into account through individual and general bad debt allowances. Default risk is also minimised with efficient receivables management, the continuous monitoring of customer payment behaviour and the conclusion of appropriate default insurance.

59. Impairment losses by class EURm 30.09.2013 30.09.2012 Write-offs/Value adjustments Non-current assets Other investments 0.4 0.9 0.4 0.9 Current assets Receivables 37.3 43.4 Securities –0.2 0.8 37.1 44.1 Total impairment losses 37.5 45.0

The Group’s maximum default risk for the items reported on the consolidated statement of financial position as of 30 September 2013 and 30 September 2012 reflect the carrying amounts shown in notes 37. Other non-current assets, 39. Receiv- ables and other current assets and 40. Securities, excluding financial guarantees.

The maximum default risk for derivative financial instruments equals the positive fair value (see note 61. Reporting of financial instruments).

The maximum risk from financial guarantees is described in note 63. Other obligations and risks.

60. Capital management EVN’s goal in the area of capital management is to maintain a solid capital structure in order to use the resulting financial strength for value-creating investments and an attractive dividend policy. One financial goal is to keep the equity ratio over 40%. As of 30 September 2013, the equity ratio equalled 43.2%. Gearing is measured as the ratio of net debt to equity, whereby net debt is calculated as current and non-current financial liabilities less cash and cash equivalents, current and non-current securities and originated loans. As of 30 September 2013, gearing equalled 50.9%.

158 EVN Full Report 2012/13 calculated asthepresent valueofthediscountedfuture cashflowsbasedonprevailing marketinterest rates. carrying valueoftheseinstrumentsasthebalancesheetdateapproximately corresponds tofairvalue.Thevalueofbondsis value. Mostofthereceivables, cashandequivalents,current financialliabilitieshaveshorttermstomaturity.Therefore, the ble transactions.Forfinancialinstrumentslistedonanactivemarket,thetradingpriceasofbalancesheetdaterepresents fair accordance withfinancialmethods,e.g.bydiscountingtheexpectedcashflowsatprevailing marketinterest rate. Loans receivable Non-current securities Current securities Gearing (%) Equity Net debt Cash andcashequivalents C Non-current loansandborrowings EURm 60. Capitalmanagement urrent loansandborrowings Fair valuegenerallyreflects thelistedpriceonbalancesheetdate.Ifthisisnotavailable,fairvaluecalculatedin 61. Reportingonfinancialinstruments The fairvalueofshares inunlistedsubsidiariesandotherinvestmentsisbasedondiscountedexpectedcashflowsorcompara-

Consolidated notes EVN Full Report2012/13 2012/13 3,066.5 1,562.8 1,571.4 –224.3 355.9 –39.2 –57.1 –43.9 50.9 — Otherinformation 2011/12 3,013.7 1,703.7 1,933.3 –134.1 –36.4 –77.0 56.5 21.4 –3.4 159

Financial statements 61. Information on classes and categories of financial instruments EURm 30.09.2013 30.09.2012 Fair value hierarchy Measurement (according to Carrying Carrying Classes category IFRS 7.27 A amount Fair value amount Fair value Non-current assets Other investments Investments in affiliates – – 8.1 – 7.7 – Miscellaneous investments1) AFS Level 1 686.7 686.7 661.0 661.0 694.8 668.7 Other non-current assets Securities @FVTPL Level 1 57.1 57.1 77.0 77.0 Loans receivable LAR 39.2 39.2 36.4 36.4 Lease receivables and accrued lease transactions LAR 703.6 703.6 673.0 673.0 Hedge Receivables arising from derivative transactions Accounting Level 2 – – 83.1 83.1 Non-financial assets – 61.1 – 28.9 – 861.1 898.3 Current assets Current receivables and other current assets Trade and other receivables LAR 507.5 507.5 507.3 507.3 Hedge Receivables arising from derivative transactions Accounting Level 2 35.1 35.1 4.0 4.0 Non-financial assets – 22.9 – 26.3 – 565.5 537.6 Securities AFS 43.9 43.9 3.4 3.4 Cash and cash equivalents Cash on hand and cash at banks LAR 259.2 259.2 162.1 162.1 259.2 162.1 Non-current liabilities Non-current loans and borrowings Bonds FLAC 707.0 792.2 1,028.6 1,145.8 Bank loans FLAC 864.4 864.4 904.6 904.6 1,571.4 1,933.3 Other non-current liabilities Leases FLAC 21.5 21.5 23.4 23.4 Accruals of financial transactions FLAC 3.9 3.9 3.4 3.4 Other liabilities FLAC 9.5 9.5 6.9 6.9 Hedge Liabilities arising from derivative transactions Accounting Level 2 16.6 16.6 16.2 16.2 51.5 49.9 Current liabilities Current loans and borrowings FLAC 390.3 390.3 49.4 49.4 Trade payables FLAC 461.9 461.9 384.4 384.4 Other current liabilities Other financial liabilities FLAC 101.1 101.1 125.3 125.3 Hedge Liabilities arising from derivative transactions Accounting Level 2 6.0 6.0 4.3 4.3 Non-financial liabilities – 77.8 – 51.7 – 184.9 181.3 Aggregated to measurement categories Available for sale financial assets AFS 730.6 664.4 Loans and receivables LAR 1,509.5 1,378.8 Financial assets designated at fair value through profit or loss @FVTPL 57.1 77.0 Financial liabilities at amortised cost FLAC 2,559.7 2,526.1

1) Primarily listed investments that are classified as available for sale.

160 EVN Full Report 2012/13 financial position. ings andlawsuits,individually asawhole,wouldnothavematerialnegativeeffect onEVN’s business,liquidity,profit orloss 61. Derivativefinancialinstruments under othernon-current liabilities orothercurrent liabilities,dependingontheirremaining termtomaturity. assets, dependingontheirremaining termtomaturity.Negativefairvaluesare recognised asliabilitiesfrom derivativetransactions illegal. Thismethod wasinusefrom 1July 2012 to31July2013andrepresented adisadvantage forEVN. compensation for theaddedcostsofrenewable electricityandfrom highlyefficient cogeneration plantsisinappropriate and an earlierdecisionbythethree-member senateinfavourof EVN.Therulingindicatedthattheprevious methodusedtodeterminethe l amount 2) 1) *) Purchases (natural gas,coal,oil) Energy swaps EURm (below5years) Interest rateswaps 3) CHFm (below1year) Currency swaps represent thecompletionoftrialoperationswithcommercial start-up.Theevaluation ofpossibleclaimsshowedthatthelegalproceed electricity andnaturalgasforhouseholdsmallbusinesscustomers asof1October2013. (e.g. bonusesforthepurchase ofenergy-efficient equipment,energyservices)aswellanaveragereduction of3.6%intheprice EURm (over5years) JPYm (over5years) JPYm (below1year) USDm (below5years) JPYm (below5years) CHFm (below5years) parties. Derivativefinancialinstrumentsare recognised attheirfairvalue. In particular, potentialriskfactorsincludefluctuationsintheunderlyingmarketparametersandcredit riskofthecontracting reference values which do not provide a measure of the risk incurred by the company through the use of these financial instruments. value-at-risk (VaR) method. all mainriskindicators.Aseparatestaff unithasbeenestablishedtomonitorriskcontrolling anddevelopriskanalysesbasedonthe a riskmanagementsystemassoontherespective contractsare concluded.Thisallowsforthepreparation ofadailyoverview The operativegoalistoensure thelong-termcontinuityofGroup’s Allderivativefinancialinstrumentsare earnings. integratedin

In mnominalcurr Smal Used asahedginginstrumentinaccor In EURm A judgmentissuedbyafive-member senateoftheBulgarianSupr The Duisburg-Walsum coal-fired powerplantstartedtrialoperations on 21October2013.Thisphaseinvolvesfinaltestsandwill ENERGIEALLIANZ AustriaGmbHanditsregional energydistributioncompaniesannouncedthestartofanefficiency campaign 62. Significant eventsafter thebalancesheetdate Positive fair values are recognised as receivables from derivative transactions under other non-current assets or other current Derivative financialinstrumentscomprisethefollowing: The nominalvaluesrepresent theseparatetotalsofitemsclassified asfinancialderivativesonthebalancesheetdate.Theseare Derivative financial instruments are used primarily to hedge the company’s liquidity, exchange rate, price and interest rate risks. Derivative financialinstruments ency 3) 3) 3)

3) 3)

dance withIAS 39 Nominal value 12,000.0 8,000.0 eme AdministrativeCourt(SAC) on4November2013confirmed 150.1 250.0 18.3 30.09.2013 – – – – 1) Fairvalue –11.1 Consolidated notes 35.1 5412,000.0 –5.4 –5.4 –1.0 2) – – – – Nominal value EVN Full Report2012/13 8,000.0 250.0 165.5 31.0 5.7 3.0 30.09.2012 — Otherinformation – – 1) Fairvalue –14.7 –0.1 –0.1 –0.1 16.2 36.8 30.1 0.0 2) 161 – – *) -

Financial statements The sale of the 50% stake in ALLPLAN Gesellschaft m.b.H., which is active in the area of technical building equipment, was finalised as of 5 November 2013. This stake was previously held by Utilitas. The transaction reflects EVN’s strategy to consolidate its activities and concentrate on the core business.

63. Other obligations and risks The commitments entered into by EVN and the related risks are as follows:

63. Other obligations and risks EURm 2012/13 2011/12 Guarantees in connection with energy transactions 151.7 108.4 Guarantees in connection with construction projects in the Environmental Services segment 201.9 260.4 Guarantees related to the construction and operation of energy networks 9.9 7.0 power plants 421.3 491.1 Order obligations for investments in intangible assets and property, plant and equipment 107.5 94.6 Further obligations arising from guarantees or other contractual contingent liabilities 0.8 5.8 Total 893.1 967.4

Neither provisions nor liabilities were recognised for the above-mentioned items because claims to the fulfilment of obligations or the actual occurrence of specific risks were not expected at the time these consolidated financial statements were prepared. The above-mentioned obligations were contrasted by corresponding recourse claims of EUR 197.8m (previous year: EUR 217.2m).

Contingent liabilities related to guarantees for energy transactions are recognised on the basis of the guarantees issued by e&t Energie Handelsgesellschaft mbH and EconGas GmbH at an amount equalling the risk exposure of EVN AG. This risk is measured by the changes between the stipulated price and the actual market price, whereby EVN is only exposed to procurement risks when market prices decline and to selling risks when market prices increase.

Accordingly, fluctuations in market prices may lead to a change in the risk exposure after the balance sheet date. The risk assessment resulted in a contingent liability of EUR 91.5m as of 30 September 2013. The nominal volume of the guarantees underlying this assessment was EUR 485.5m. As of 31 October 2013, the market price risk was EUR 95.1m based on an underlying nominal volume of EUR 484.0m.

Various legal proceedings and lawsuits related to operating activities are pending or claims may be filed against EVN in the future. The attendant risks were analysed in relation to their probability of occurrence. The evaluation of possible claims showed that the legal proceedings and lawsuits, individually and as a whole, would not have a material negative effect on EVN’s business, liquidity, profit or loss or financial position. Additional obligations arising from guarantees and other contractual contingent liabilities consisted chiefly of outstanding capital contributions and loan commitments to affiliates as well as liabilities for affiliates’ loans.

64. Information on transactions with related parties In accordance with IAS 24, transactions with related parties arise through direct or indirect control, significant influence or joint management. Related parties include close family members of the respective natural persons. Key management personnel and their close family members are also considered to be related parties.

EVN’s related parties include all companies in the scope of consolidation, other subsidiaries and associates, the main shareholders NÖ Landes-Beteiligungsholding GmbH, St. Pölten, and their subsidiaries, EnBW Energie Baden-Württemberg AG, Karlsruhe, Germany, as well as people who are responsible for the planning, management and supervision of the Group’s activities. In particular, related parties also include the members of the Executive Board and the Supervisory Board as well as their family members. A list of the Group companies can be found starting on page 167 under EVN’s investments. EVN AG is integrated in the consolidated financial statements of EnBW Energie Baden-Württemberg AG, Karlsruhe, Germany, as an investment in an equity accounted investee.

162 EVN Full Report 2012/13 pensions amounted toTEUR693.5(thereof TEUR79.1interest expense, includingTEUR531.1ofactuarial gains/losses). (thereof TEUR92.3interest expense,includingTEUR294.6ofactuarialgains/losses). In2011/12,theadditiontoprovision for pension fundcontributionsequalled TEUR51.2(previous year: TEUR49.7)and502.3were addedtotheprovision forpensions to TEUR1,341.5(thereof TEUR231.6interest expense,includingTEUR981.2ofactuarial gains/losses).ForStefanSzyszkowitz,the (thereof TEUR240.3interest expense,includingTEUR530.0ofactuarialgains/losses). Intheprevious year, theadditionamounted in kindandcontributionstopensionfunds;previous year:TEUR1,431.4). pensions andSupervisoryBoard remuneration. Liabilities from cash pooling Receivables from cash pooling Loans Trade accountspayable Trade accountsreceivable Cost ofservicesreceived Herbert Pöttschacher Stefan Szyszkowitz Peter Layr 64. RemunerationoftheactiveExecutiveBoard l amount *) Interest balancefrom cashpooling Interest incomefrom loans Revenue EURm 64. Transactions withinvestmentsinequityaccounted investees of electricity,andlong-termsourcing contractswere concludedwithEconGasfornaturalgas. included at equity initsconsolidatedfinancialstatements.Long-termagreements were concludedwithe&tforthesaleandsourcing the inclusionofEVN AG inacorporatetaxgroup asdefinedin§ liability ofEUR8.8m)duetoNÖLandes-BeteiligungsholdingGmbH,St. subsidiaries tothetaxgroup basedonthisagreement. Thisresulted inaliabilityof EUR 7.3m asof 30 September2013(previous year:

Smal Furthermore, anadditionofTEUR932.6wasmadetothe provision forpensionsobligations onbehalf ofPeter Layrin2012/13 The followingtableprovides detailedinformationontheremuneration oftheExecutiveBoard in2012/13: The remuneration paidto the activemembersofExecutiveBoard in2012/13totalledTEUR1,404.3(includingcompensation The paymentstomembersoftheExecutiveBoard andtheSupervisoryBoard consistprimarilyofsalaries,severancepayments, Executive Board andSupervisoryBoard Transactions withrelated individuals The valueofservicesprovided toinvestmentsinequityaccountedinvesteesisasfollows: W Investments inequityaccountedinvestees A group and tax settlement agreement was concluded with NÖ Landes-Beteiligungsholding GmbH, St. Main shareholder Transactions withrelated companies ithin thecontextofitsordinary businessoperations,EVNhasconcludedsupplyandservicecontractswithnumerous associates

9 oftheAustrianCorporateT

Pölten. Fixed remuneration ER204TEUR113.6 TEUR110,4 TEUR118,4 TEUR 280,4 TEUR 339.3 TEUR 363.9 Consolidated notes ax Act.EVN AG hassinceaddedfurther eueainCompensationinkind remuneration EVN Full Report2012/13 2012/13 Variable

Pölten, 106.1 663.9 156.8 10.4 22.4 0.0 0.0 0.1 0.6 — Otherinformation *) *) in connection with 2011/12 TEUR 7.4 TEUR 9.8 TEUR 9.8 777.2 155.8 74.8 11.7 21.3 0.0 0.0 0.1 0.2 163 *) *)

Financial statements The addition to the provisions for severance payments equalled TEUR 28.0 in 2012/13 for Peter Layr (thereof TEUR 17.7 interest expense, including TEUR –1.9 of actuarial gains/losses) and TEUR 43.2 in the previous year (thereof TEUR 19.9 interest expense, including TEUR 11.9 of actuarial gains/losses). For Stefan Szyszkowitz, TEUR 8.0 were contributed to an external employee fund (previous year: TEUR 6.8).

The year-on-year change in the remuneration of the active members of the Executive Board is attributable primarily to the retirement of Herbert Pöttschacher as of 30 June 2013, to the annual wage and salary increases mandated by collective bargaining agreements and to the change in performance-based components. The members of the Executive Board are entitled to legally defined severance compensation at the end of their functions. They are also entitled to a contractually agreed pension on retirement, whereby the pension payments under Austrian social security scheme and any payments from EVN Pensionskasse are credited against this amount.

The payments to former members of the Executive Board or their surviving dependents amounted to TEUR 1,587.3 for the reporting year (previous year: TEUR 1,028.3).

Expenses for severance payments and pensions for active members of senior management totalled TEUR 1,359.5 in 2012/13 (thereof TEUR 303.2 interest expense, including TEUR 780.5 of actuarial gains/losses) and TEUR 1,841.4 in the previous year (thereof TEUR 292.5 interest expense, including TEUR 1,160.7 of actuarial gains/losses).

The above amounts include expenses recognised in accordance with national law, as required by the Austrian Corporate Governance Code. Actuarial gains and losses are recorded under other comprehensive income without recognition through profit or loss in keeping with IAS 19.

The Supervisory Board remuneration totalled EUR 0.1m in 2012/13 (previous year: EUR 0.1m). The members of the Advisory Board for the Environment and Social Responsibility received remuneration of EUR 0.1m during the reporting year (previous year: EUR 0.1m).

The basic principles underlying the remuneration system are presented in the remuneration report (starting on page 56), which is part of the Management Report.

Transactions with other related companies The disclosure requirements for the notes do not cover information on intragroup transactions. Therefore, business transactions between EVN and its subsidiaries or joint ventures are not reported.

Business transactions with non-consolidated affiliates and associates not included at equity are generally not reported due to their immateriality.

Related parties can also be direct customers of a company within the EVN Group, whereby these business relationships reflect prevailing market rates and conditions and are immaterial in relation to the total income recorded by the EVN Group in 2012/13. The resulting items which were outstanding as of 30 September 2013 were reported under trade accounts receivable.

65. Other disclosures The EVN Group uses cash pooling to manage liquidity and optimise interest rates. EVN Finanzservice GmbH and each of the participating Group subsidiaries have concluded a contract that defines the modalities for cash pooling.

66. Information on management and staff The corporate bodies of EVN AG are:

Executive Board Peter Layr – Spokesman of the Executive Board Stefan Szyszkowitz – Member of the Executive Board

164 EVN Full Report 2012/13 Spokesman oftheExecutiveBoard Peter Layr The ExecutiveBoard EVN AG Maria Enzersdorf,19November2013 consulting services. other to (previous 2.0% and advising tax year to 63.0% services, reporting audit-related and auditing to the attributable are 35.0% for whereby 2.1m), EUR year: 1.8m EUR to amounted fees consulting and Auditing Vienna. Steuerberatungsgesellschaft, und 11 December2013forexamination,andtheSupervisoryBoardwillalsobeaskedtoapproveindividualfinancialstatements. of statements financial consolidated the and Standards, Reporting Financial financial statements, which were also included in the consolidated financial statements after their adjustment to reflect International EVN’s consolidated financial statements for the 2012/13 financial year were audited by KPMG Austria AG Wirtschaftsprüfungs- AG Austria KPMG by audited were year financial 2012/13 the for statements financial consolidated EVN’s 68. Auditingfees individual The below. indicated date the of as Board Executive the by prepared were statements financial consolidated These 67. Approvalofthe2012/13consolidatedfinancialstatementsforpublication Manfred Weinrichter–employeerepresentative Otto Mayer–employeerepresentative Paul Hofer–employeerepresentative Franz Hemm–employeerepresentative Monika Fraißl–employeerepresentative Michaela Steinacker Edwin Rambossek Bernhard Müller Reinhard Meissl Dieter Lutz Thomas Kusterer Norbert Griesmayr Willi Stiowicek–Vice-Chairman Stefan Schenker–Vice-Chairman Burkhard Hofer–Chairman Supervisory Board

StefanSzyszkowitz MemberoftheExecutiveBoard will be submitted to the Supervisory Board on Board Supervisory the to submitted be EVN AG will Consolidated notes Consolidated EVN Full Report 2012/13 Report Full EVN — Other information Other — 165

Financial statements Financial information on joint ventures and investments in equity accounted investees

The following overview presents the key items in the statement of financial position and the statement of operations of proportionately consolidated joint ventures:

Key figures of joint ventures EURm 2012/13 2011/12 Statement of financial position Non-current assets 19.8 17.1 Current assets 293.9 357.7 Non-current liabilities 1.1 1.7 Current liabilities 209.8 268.0 Statement of operations Revenue 1,111.7 1,146.9 Operating expenses –1,057.8 –1,103.9 Depreciation and amortisation –0.4 –0.4 Operating result (EBIT) 53.4 42.6 Financial results –0.4 –0.1 Profit before income tax 53.0 42.6

The following overview presents the key items in the statement of financial position and the statement of operations in equity accounted investees:

Key figures of investments in equity accounted investees EURm 2012/13 2011/12 Statement of financial position Equity 2,532.5 1,630.2 Assets 7,290.1 5,829.0 Liabilities 4,757.6 4,198.8 Statement of operations Revenue 13,178.5 12,116.0 Profit for the period –48.3 134.5

166 EVN Full Report 2012/13 EVN NetzGmbH,(“EVNNetz”),MariaEnzersdorf v aukatBtiiug-udBtib-mH “v kBB) ai nesofenntrrf 0.030.09.2013 100.00 evnnaturkraft evn naturkraft m.b.H.,(“evnnaturkraft”), Erzeugungsgesellschaft MariaEnzersdorf evn naturkraft Beteiligungs- undBetriebs-GmbH,(“evnnkBuB”),MariaEnzersdorf EVN Macedonia Holding DOOEL,Skopje,Macedonia EVN MacedoniaHolding EVN MacedoniaElektrani DOOEL,Skopje,Macedonia EVN MacedoniaAD,(“EVNMacedonia”), Skopje,Macedonia m.b.H.,(“EVNLV”),EVN LiegenschaftsverwaltungGesellschaft MariaEnzersdorf Hydro Power Company GornaArda AD,Bulgaria EVN Kraftwerks- mbH,(“EVN Kraftwerk”), und Beteiligungsgesellschaft MariaEnzersdorf EVN Kavarna EOOD,(“EVNKavarna”), Plovdiv, Bulgaria EVN GeoinfoGmbH,(“EVNGeoinfo”),MariaEnzersdorf Bulgaria EVN GornaArda Development EOOD,Sofia, Fernwärme Steyr GmbH,Steyr EVN Energievertrieb GmbH&CoKG, (“EVN KG”), MariaEnzersdorf Fernwärme St. EVN Croatia Plind.o.o, Zagreb, Croatia e&t Energie mbH,(“e&t”),Vienna Handelsgesellschaft (“EVN-WE KG”), Wind Vienna EVN-Vienna undBetriebsGmbH&CoKG ENERGIEWindparkentwicklungs- EVN BulgariaToplofikatsia Plovdiv, EAD,(“TEZPlovdiv”), Bulgaria EVN Wärme GmbH,(“EVNWärme”), MariaEnzersdorf EVN BulgariaEAD,(“EVNBulgaria”), Sofia, EVN Trading Bulgaria SouthEastEurope EAD,(“EVNSEE”),Sofia, EVN BulgariaElectrosnabdjavane EAD,(“EVNBulgariaEC”),Plovdiv, Bulgaria EVN Trading DOOEL,Skopje,Macedonia EconGas GmbH,(“EconGas”),Vienna EVN BulgariaElectrorazpredelenie EAD,(“EVNBulgaria EP”),Plovdiv, Bulgaria EVN Trading d.o.o.Beograd, Belgrade, Serbia EVN ServiceCentre EOOD,Plovdiv, Bulgaria EAA Erdgas Mobil GmbHinLiquidation,Vienna ENERGIEALLIANZ AustriaGmbH,(“EnergieAllianz”), Vienna EVN Projektmanagement GmbH,MariaEnzersdorf rate onthebalancesheetdateofEVN AG. the respective balancesheetdate.Thedatafrom companiesthatreport inaforeign currency istranslatedintoeuros attheexchange financial statementsofEVN AG formaterialityreasons isbasedonthecompanies’lastavailablelocalannual financialstatementsasof Q: NV: V: Method ofconsolidation: Bioenergie Steyr GmbH,Behamberg ALLPLAN m.b.H.,Vienna Gesellschaft Company, registered office 1.1 IncludedintheconsolidatedfinancialstatementsofEVN AG as of30September2013 1. EVN’s investmentsintheEnergybusiness

The followingtablelistsEVN’s investmentsclassified bysegmentofbusiness.Thelistcompaniesnotincludedinthe EVN’s investments Company includedon a pr Non-consolidated aff F ully consolidatedcompany(subsidiary) ully

P ölten GmbH,St. iliate oportionate basis(joint venture)

P ölten 1) Consolidated financialstatementsfor2012/13 2)

≥ 20,0% NE: E: NQ:

Investment inassociate notincludedat equity Investment inequityaccounted investee Company notincludedonapr

oportionate basis(jointventure) V aeoi 0.031.12.2012 100.00 EVN Macedonia v aukat100 31.12.2012 100.00 evn naturkraft v aukat5.030.09.2012 50.00 evn naturkraft Shareholder V ugra100 31.12.2012 100.00 EVN Bulgaria V ugra100 31.12.2012 100.00 EVN Bulgaria V äm 90 30.09.2013 49.00 EVN Wärme V äm 10 30.09.2013 51.00 EVN Wärme V/tlts100 30.09.2013 100.00 EVN/Utilitas — Financialinformation,EVN‘sinvestments V E 0.031.12.2012 100.00 EVN SEE V E 0.031.12.2012 100.00 EVN SEE V V100 30.09.2013 100.00 EVN LV tlts100 30.09.2013 100.00 Utilitas tlts5.031.12.2012 50.00 Utilitas V 0.030.09.2013 100.00 EVN V 0.031.12.2012 100.00 EVN V 00 31.12.2012 90.00 EVN V 00 31.12.2012 70.00 EVN V 0.030.09.2013 100.00 EVN V 0.030.09.2013 100.00 EVN V 90 31.12.2012 49.00 EVN V 100 30.09.2013 100.00 EVN V 50 30.09.2013 45.00 EVN V 0.031.12.2012 100.00 EVN V 0.030.09.2013 100.00 EVN V 0.031.12.2012 100.00 EVN V 0.031.12.2012 100.00 EVN V 0.031.12.2012 100.00 EVN V 0.031.12.2012 100.00 EVN V 50 30.09.2013 45.00 EVN V 65 31.12.2012 16.51 EVN V 0.030.09.2013 100.00 EVN A 0.030.09.2013 100.00 EAA Interest in % EVN Full Report2012/13 Balance sheet date consolidation 2012/13 consolidated Method of 167 Q Q Q V V V V V V V V V V V V V V V V V V V V V V V E E E E E E E

Financial statements 1.1 Included in the consolidated financial statements of EVN AG Interest Balance sheet Method of Company, registered office Shareholder in % date consolidation 2012/13 kabelplus GmbH, (“kabelplus”), Maria Enzersdorf 3) Utilitas 100.00 30.09.2013 V Naturkraft Energievertriebsgesellschaft m.b.H., Vienna EAA 100.00 30.09.2013 Q Naturkraft EOOD, Plovdiv, Bulgaria evn naturkraft 100.00 31.12.2012 V Shkodra Region Beteiligungsholding GmbH, Vienna EVN 49.99 31.12.2012 E SWITCH Energievertriebsgesellschaft m.b.H., Salzburg-Aigen EAA 100.00 30.09.2013 Q STEAG-EVN Walsum 10 Kraftwerksgesellschaft mbH, Essen, Germany EVN Kraftwerk 49.00 31.12.2012 E VERBUND Innkraftwerke Germany GmbH, Töging, Germany 1) evn nk BuB 13.00 31.12.2012 E V&C Kathodischer Korrosionsschutz Gesellschaft m.b.H., (“V&C”), Pressbaum Utilitas 100.00 31.03.2013 V Wasserkraftwerke Trieb und Krieglach GmbH, (“WTK”), Maria Enzersdorf evn naturkraft 70.00 30.09.2013 V

1) Despite an interest of ≤ 20.0%, the shareholding is included due to its materiality. 2) Due to legal requirements, the name of the company was changed with 1 October 2013 in “Netz Niederösterreich GmbH”. 3) Formerly kabelplus AG, Maria Enzersdorf

1.2 Not included in the consolidated financial Shareholders’ Last year’s Method of statements of EVN AG due to immateriality Interest equity profit/loss Balance sheet consolidation Company, registered office Shareholder in % Currency in TEUR in TEUR date 2012/13 Anlagenbetriebsgesellschaft Waidhofen/Ybbs GmbH EVN Wärme 100.00 EUR 2,628 7.807 30.09.2012 NV (–6,652) (–6.946) (31.12.2011) Albnor Company DOO, Tetovo, Macedonia EVN Macedonia 70.00 MKD 742 –86 31.12.2012 NV (327) (27) (31.12.2011) ARGE Coop Telekom, Maria Enzersdorf EVN Geoinfo 50.00 EUR 102 41 31.12.2012 NE (93) (32) (31.12.2011) ARGE Digitaler Leitungskataster NÖ, Maria Enzersdorf EVN Geoinfo 30.00 EUR 71 104 31.12.2012 NE (–32) (–164) (31.12.2011) ARGE GIP.nö, Maria Enzersdorf 1) EVN Geoinfo 60.00 EUR – – 31.12.2013 NE (–) (–) (31.12.2012) B3 ENERGIE GmbH, St. Georgen an der Gusen EVN Wärme 50.00 EUR –957 –642 30.09.2012 NE (–314) (–322) (30.09.2011) B.net Hungária Távközlési Kft., Sopron, Hungary kabelplus 100.00 HUF –59 –39 30.09.2012 NV (–21) (–57) (30.09.2011) Bioenergie Wiener Neustadt GmbH EVN Wärme 90.00 EUR 607 –28 31.12.2012 NV (636) (–328) (31.12.2011) Biowärme Amstetten-West GmbH, Amstetten EVN Wärme 49.00 EUR 64 –73 31.12.2012 NE (137) (–20) (31.12.2011) EMC Energy Consulting Trading Gesellschaft mbH EAA 100.00 EUR 22 –3 30.09.2013 NQ München, Germany (25) (–1) (30.09.2012) EVN Albania SHPK, Tirana, Albania EVN 100.00 ALL 49 –86 31.12.2012 NV (36) (–106) (31.12.2011) EVN GRID MANAGEMENT EOOD, Plovdiv, Bulgaria1) EVN Bulgaria 100.00 BGN – – 31.12.2013 NV (–) (–) (31.12.2012) EVN Macedonia Elektrosnabduvanje DOOEL, Skopje EVN Macedonia 100.00 MKD 5 0 31.12.2012 NV (5) (0) (31.12.2011) Energiespeicher Sulzberg GmbH, Maria Enzersdorf evn naturkraft 51.00 1,031 –14 30.09.2013 NV –5 –241 (30.09.2012) EVN Trading d.o.o. Podgorica, Podgoriza, Montenegro EVN SEE 100.00 EUR 10 0 31.12.2012 NV (10) (0) (31.12.2011) EVN Trading SHPK, Tirana, Albania EVN SEE 100.00 ALL 3 –12 31.12.2012 NV (15) (–10) (31.12.2011)

168 EVN Full Report 2012/13 Essen, Germany Saarberg HölterProjektgesellschaft SüdButowombH,(“SüdButowo”) he company was newly established during the 2012/13 financial year.he companywasnewlyestablishedduringthe2012/13financial 1) OOO EVNUmwelt,Moscow, Russia OOO EVNUmweltService,Moscow, Russia “WTESüd-Ost”, Moscow,OAO Russia OAO “WTESüd-West”, Moscow, Russia OAO “EVNMSZ3”,(“OAO MVA3”), Moscow, Russia No. BUDAPRO-ZAVOD OAO 1, Moscow, Russia evn wasser Gesellschaft m.b.H.,(“evn wasser”),MariaEnzersdorf evn wasser Gesellschaft EVN Umweltholding und Betriebs-GmbH,(“EVNUmwelt”),MariaEnzersdorf EVN Umweltholding undService-GmbH,(“EVNUFS”),Maria Enzersdorf EVN UmweltFinanz- EVN UmweltBeteiligungsundServiceGmbH,(“EVNUBS”),MariaEnzersdorf Maria Enzersdorf EVN Projektgesellschaft Müllverbrennungsanlage Nr. 3mbH,(“EVNMVA3”) Essen, Germany EVN Projektgesellschaft Müllverbrennungsanlage Nr. 1mbH,(“EVNMVA1”) NiederösterreichEVN Abfallverwertung Maria Enzersdorf GmbH,(“EVNAbfall”), Cista Dolina–SHWKomunalno podjetjed.o.o.,Kranjska Gora, Slovenia AUL AustriaGmbH,MariaEnzersdorf Abfallumladelogistik Company, registered office 2.1 IncludedintheconsolidatedfinancialstatementsofEVN AG as at30September2013 2. EVN’s investmentsintheEnvironmental Services business≥20% Betriebs GmbH,(“EVN-WEGmbH”),Vienna Wind EVN-Vienna und ENERGIEWindparkentwicklungs- Company, registered office statements ofEVN AGduetoimmateriality 1.2 Notincludedintheconsolidatedfinancial VCK Betonschutz+ MonitoringGmbH,Mainz,Germany Denkendorf, Germany KorrosionsschutzSpieth Kathodischer GmbH Fernwärme GmbH,Mariazell Mariazellerland Göllersdorf Genossenschaft mitbeschränkter HaftunginLiquidation, FWG-Fernwärmeversorgung registrierte Hollabrunn IN-ER Erömü Kft.,Nagykanizsa,Hungary Kraftwerk Nußdorf Errichtungs-und Betriebs GmbH&CoKG, Vienna Kraftwerk Nußdorf Errichtungs-und Betriebs GmbH,Vienna MAKGAS DOOEL,Skopie,Macedonia Bergern GmbH,Maria Enzersdorf Netz Niederösterreich Grundstücksverwaltung

1) 1) v aukat5.0ER37 EUR 50.00 evn naturkraft v aukat3.3ER48 EUR 33.33 evn naturkraft v aukat3.3ER6,740 EUR 33.33 evn naturkraft Shareholder EVN V äm 88 U 7 5 11.02NE 31.12.2012 –51 772 EUR 48.86 EVN Wärme V ez100 U 1,757 EUR 100.00 EVN Netz

Utilitas Consolidated financialstatementsfor2012/13 & 00 U 67 0 EUR 50.00 EUR V&C 100.00 V&C V 00 U 1.856 HUF 70.00 EVN V 0.0MD– MKD 100.00 EVN Interest n%Currency in % 0.0ER377 EUR 100.00 Shareholder V Umwelt EVN V met100 30.09.2013 30.09.2013 100.00 100.00 EVN Umwelt EVN Umwelt 30.09.2013 100.00 EVN Umwelt T ere 0.030.09.2013 100.00 WTE Betrieb V/tlts100 30.09.2013 100.00 EVN/Utilitas V V3100 31.12.2012 31.12.2012 100.00 100.00 EVN MVA3 EVN MVA1 T se 0.030.09.2013 100.00 WTE Essen WTE Essen V bal5.030.09.2013 50.00 EVN Abfall ü-et100 31.12.2012 100.00 Süd-West T y 0.031.12.2012 100.00 WTE Hyp V B 0.031.12.2013 100.00 EVN UBS V B 0.031.12.2012 100.00 EVN UBS Utilitas Shareholders’ in TEUR V 0.030.09.2013 100.00 EVN equity 195 1)(31.12.2011) (10) (1,925) (6,036)

/ (952) (36) (65) 2)(5 (31.12.2011) (–5) (24) (45) (0) (0) (–) Interest in % 100.00 100.00

profit/loss profit/loss Last year’s in TEUR EVN Full Report2012/13 Balance sheet (566) (–10) 30.09.2013 30.09.2013 704 (18) –10 63.221 NV 31.12.2012 16 (1) 4 (31.12.2011) (4) 3 (31.12.2011) (3) 0 (31.12.2011) (0) –8 (–) date 0 11.02NE 31.12.2012 2 1 11.02NE 31.12.2012 3 11.02NV 31.12.2012 – — EVN‘sinvestments Balance sheet (30.09.2012) (31.12.2011) (30.09.2011) (30.06.2012) (31.12.2011) 30.09.2013 31.12.2012 30.09.2012 30.06.2013 31.12.2012 date consolidation 2012/13 Method of consolidation Method of 2012/13 169 NV NV NV NE NE V V V V V V V V V V V V V V V E

Financial statements 2.1 Included in the consolidated financial statements of EVN AG Interest Balance sheet Method of Company, registered office Shareholder in % date consolidation 2012/13 SHW Hölter Projektgesellschaft Zelenograd mbH, (“Zelenograd”), Essen, Germany WTE Essen 100.00 30.09.2013 V sludge2energy GmbH, Berching, Germany WTE Essen 50.00 30.09.2013 E Storitveno podjetje Lasko d.o.o., Lasko, Slovenia WTE Essen 100.00 30.09.2013 V WTE Betriebsgesellschaft mbH, (“WTE Betrieb”), Hecklingen, Germany WTE Essen 100.00 30.09.2013 V WTE desalinizacija morske vode d.o.o., Budva, Montenegro WTE Essen 100.00 31.12.2012 V WTE otpadne vode Budva DOO, Podgoriza, Montenegro WTE Essen 100.00 31.12.2012 V EVN UFS / WTE Projektgesellschaft Natriumhypochlorit mbH, (“WTE Hyp”), Essen, Germany WTE Essen 100.00 30.09.2013 V WTE Projektgesellschaft Süd-West Wasser mbH, (“Süd-West”), Essen, Germany WTE Essen 100.00 30.09.2013 V WTE Projektgesellschaft Trinkwasseranlage d.o.o., Beograd-Vracar, Serbia2) WTE Essen 100.00 30.09.2013 V WTE Projektna druzba Bled d.o.o., Bled, Slovenia WTE Essen 100.00 30.09.2013 V WTE Projektna druzba Kranjska Gora d.o.o., Kranjska Gora, Slovenia WTE Essen 100.00 30.09.2013 V WTE Wassertechnik GmbH, (“WTE Essen”), Essen, Germany EVN Umwelt 100.00 30.09.2013 V WTE Wassertechnik (Polska) Sp.z.o.o., Warsaw, Poland WTE Essen 100.00 30.09.2013 V Zagrebacke otpadne vode d.o.o., (“ZOV”), Zagreb, Croatia WTE Essen 48.50 31.12.2012 E Zagrebacke otpadne vode – upravljanje i pogon d.o.o., (“ZOV UIP”), Zagreb, Croatia WTE Essen 33.00 31.12.2012 E

1) The company was newly established during the 2012/13 financial year. 2) The company was fully consolidated for the first time with the first quarter of 2012/13 financial year.

2.2 Not included in the consolidated financial Shareholders’ Last year’s Method of statements of EVN AG due to immateriality Interest equity profit/loss Balance sheet consolidation Company, registered office Shareholder in % Currency in TEUR in TEUR date 2012/13 ABeG Abwasserbetriebsgesellschaft mbH WTE Essen 49.00 EUR 564 84 30.09.2013 NE Offenbach am Main, Germany (478) (22) (30.09.2012) Abwasserbeseitigung Kötschach-Mauthen Errichtungs- und WTE Essen 26.00 EUR 37 0 31.12.2012 NE Betriebsgesellschaft mbH, Kötschach-Mauthen (37) (0) (31.12.2011) Degremont WTE Wassertechnik Praha v.o.s. WTE Essen 35.00 CZK – – 31.12.2012 NE Praha, Czech Republic (–) (–) (31.12.2011) EVN MVA Nr. 1 Finanzierungs- und Servicegesellschaft mbH WTE Essen 100.00 EUR 31 –1 30.09.2013 NV Maria Enzersdorf (33) (–2) (30.09.2012) Nevawasser Projektgesellschaft mbH (“Nevawasser”), WTE Essen 100.00 EUR 24 –1 30.09.2013 NV Essen, Germany 1) (–) (–) (30.09.2012) OAO WTE Kurjanovo, Moscow, Russia Kurjanovo 100.00 RUB 2 0 31.12.2012 NV (2) (0) (31.12.2011) OAO EVN Ljuberzy, Moscow, Russia Ljuberzy 100.00 RUB 2 0 31.12.2012 NV (2) (0) (31.12.2011) OOO Eco Reagent, Moscow, Russia OAO “WTE Süd- 100.00 RUB 2 0 31.12.2012 NV Ost”/ EVN UBS (2) (0) (31.12.2011) OOO EVN-Ekotechprom MSZ3, Moscow, Russia OAO MVA3 70.00 RUB 3,544 1,116 31.12.2012 NV (2,900) (335) (31.12.2011) OOO Nordwasserwerk, Moscow, Russia1) Nevawasser 100.00 RUB – – 31.12.2013 NV (–) (–) (31.12.2012) OOO Süd-West Wasserwerk, Moscow, Russia Süd-West 70.00 RUB 2,939 693 31.12.2012 NV (3,769) (2,099) (31.12.2011) OOO “WTE Wassertechnik West”, Moscow, Russia WTE Essen 100.00 RUB 2 0 31.12.2012 NV (3) (0) (31.12.2011) EVN Projektgesellschaft KSV Ljuberzy mbH WTE Essen 100.00 EUR 24 0 30.09.2013 NV Essen, Germany (“Ljuberzy”) (24) (–1) (30.09.2012)

170 EVN Full Report 2012/13 statements ofEVN AGduetoimmateriality statements ofEVN AGduetoimmateriality he company was newly established during the 2012/13 financial year.he companywasnewlyestablishedduringthe2012/13financial 1) Beteiligungs GmbH, Vienna StadtwerkeWiener ManagementBeta m.b.H.,MariaEnzersdorf und -servicegesellschaft NÖTECH NÖEnergieforschungs-, -planungs-, -betriebs- (“EVN-Pensionskasse”), MariaEnzersdorf EVN-Pensionskasse Aktiengesellschaft, Company, registered office 3.2 Energie Burgenland AG, Eisenstadt (“BUHO”),Eisenstadt Aktiengesellschaft, Burgenland Holding Company, registered office 3.1 IncludedintheconsolidatedfinancialstatementsofEVN AG as at30September2013 3. EVN AG–InvestmentsintheStrategicandOtherBusinesssegment≥20% 873 EUR 50.00 evnwasser m.b.H,Untertullnerbach Gesellschaft Wiental-Sammelkanal Märkische Schweizmbh,Buckow, Germany Wasserver- undAbwasserentsorgungsgesellschaft Zagreb, Croatia SHW/RWE UmweltAqua Vodogradnja d.o.o. Company, registered office 2.2 erbund AG, 12.63% arethrough held,andthereoftheWEEVBeteiligungsGmbH1.09%. indirectly 1) EVN BusinessServiceGmbH,MariaEnzersdorf WTE BalticUAB, Kaunas, Lithuania WTE Projektmanagement GmbH,Essen,Germany Essen, Germany(“Kurjanovo”) WTE Projektgesellschaft Kurjanovo mbH EVN Finanzservice GmbH,MariaEnzersdorf EVN Finanzservice undVermietungs-GmbH,EVN Finanzmanagement (“EVNFM”),MariaEnzersdorf ZAO “STAER”, Moscow, Russia R 138-Fonds, Vienna e&i EDV m.b.H.,Vienna Dienstleistungsgesellschaft EVN WEEVBeteiligungsGmbH,MariaEnzersdorf ZAO “STAER-ZWK”, Moscow, Russia Rohöl-Aufsuchungs (“RAG”), Aktiengesellschaft, Vienna RAG-Beteiligungs-Aktiengesellschaft, (“RBG”),MariaEnzersdorf WEEV BeteiligungsGmbH,MariaEnzersdorf Maria Enzersdorf UTILITAS m.b.H,(“Utilitas”) Dienstleistungs- undBeteiligungs-Gesellschaft

T In V Not includedintheconsolidatedfinancial Not includedintheconsolidatedfinancial

1) Shareholder Shareholder ü uoo7.0RB110 RUB 70.00 Süd Butowo eeord7.0RB60163.221 NV 31.12.2012 116 610 RUB 70.00 Zelenograd T se 90 U 530 EUR 1,419 49.00 HRK WTE Essen 50.00 WTE Essen T se 100.00 WTE Essen T se 0.0ER19 23 EUR 100.00 EUR WTE Essen 100.00 WTE Essen tlts4.7ER466 5 EUR 47.37 EUR Utilitas 50.00 Utilitas Consolidated financialstatementsfor2012/13 V 0.0ER3,846 EUR 100.00 EVN Interest Interest n%Currency in % n%Currency in % EVN/EVN Netz/ Netz/ EVN/EVN Shareholder v asr100 30.09.2013 100.00 evn wasser LTL V EV5.030.06.2013 50.00 EVN WEEV V M100 30.09.2013 100.00 EVN FM tlts100 30.09.2013 100.00 Utilitas Shareholders’ Shareholders’ UO4.030.09.2012 49.00 BUHO in TEUR B 0.031.12.2012 100.00 RBG V 36 30.09.2013 73.63 EVN V 0.030.09.2013 100.00 EVN V 00 30.09.2013 50.00 31.08.2013 100.00 EVN EVN V 00 31.03.2013 50.03 EVN V 0.030.09.2013 100.00 EVN in TEUR equity equity (1,696) (3,675) (521) 84 –)(31.12.2011) (–5) (874) 19 1)(30.09.2012) (13) (169) 21 10 (31.12.2011) (120) (281) 73 13 (31.12.2011) (173) (713) (470) 185 (20) (23) (30) Interest in %

profit/loss profit/loss Last year’s profit/loss profit/loss Last year’s in TEUR in TEUR EVN Full Report2012/13 Balance sheet (–934) (–449) (351) (175) –195 103 (–1) 176 73.921 NV 30.09.2013 17 33.221 NV 31.12.2012 63 (9) 0 (30.09.2012) (0) 13.221 NE 31.12.2012 –1 13.921 NV 30.09.2013 –1 –1 –3 date 8 — EVN‘sinvestments Balance sheet Balance sheet (31.12.2011) (31.12.2011) (30.09.2012) (31.12.2011) (31.12.2011) (30.11.2011) 31.12.2012 31.12.2012 30.09.2013 31.12.2012 31.12.2012 30.11.2012 date date consolidation 2012/13 Method of consolidation consolidation Method of Method of 2012/13 2012/13 171 NV NV NE NE NE NE V V V V V V V V E E E E

Financial statements Auditor’s report

Report on the Consolidated financial statements We have audited the accompanying Consolidated financial statements of

EVN AG, Maria Enzersdorf,

for the reporting period from 1 October 2012 to 30 September 2013. These Consolidated financial statements comprise the Statement of financial position as of 30 September 2013 and the Statement of operations, Statement of comprehensive income, Statement of cash flows and the Statement of changes in stockholders’ equity for the year then ended, and the notes.

Management’s responsibility for the Consolidated financial statements and accounting system Management is responsible for the accounting system and for the preparation and fair presentation of these Consolidated financial statements in accordance with the International Financial Reporting Standards (IFRSs) as adopted by the EU, and the additional requirements of Section 245a (Austrian Commercial Code) UGB. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the Consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility and description of type and scope of the Statutory Audit Our responsibility is to express an opinion on these Consolidated financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and International Standards on Auditing, issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). Those standards require that we comply with professional guidelines and that we plan and perform the audit to obtain reasonable assurance about whether the Consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the Consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Group’s preparation and fair presentation of the Consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasona- bleness of accounting estimates made by management, as well as evaluating the overall presentation of the Consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the Consolidated financial statements comply with legal requirements and give a true and fair view of the financial position of the Group as of 30 September 2013 and of its financial performance and its cash flows for the year from 1 October 2012 to 30 September 2013 in accordance with the International Financial Reporting Standards (IFRSs) as adopted by the EU.

172 EVN Full Report 2012/13 pursuant toSection243aUGB(AustrianCommercial Code)are appropriate. appropriate. Consolidated financialstatementsandwhetherthedisclosures pursuanttoSection243aUGB(AustrianCommercial Code)are tion. Theauditor’s report alsohastocontainastatementaswhethertheManagementreport fortheGroup isconsistentwiththe Consolidated financialstatementsandastowhethertheotherdisclosures are notmisleadingwithrespect totheCompany’s posi- This report isatranslationoftheoriginalreport inGerman,whichissolelyvalid. 19November2013 Vienna, In ouropinion,theManagementreport fortheGroup isconsistentwiththeConsolidatedfinancialstatements.Thedisclosures Pursuant tostatutoryprovisions, theManagementreport fortheGroup istobeauditedaswhetheritconsistentwiththe Report ontheManagementreport fortheGroup

signed W W alter Reiffenstuhl irtschaftsprüfer Wirtschaftsprüfungs- undSteuerberatungsgesellschaft Wirtschaftsprüfungs-

(Austrian Chartered Accountants)

KPMG AustriaAG Consolidated financialstatementsfor2012/13 Wirtschaftsprüferin Heidi Schachinger EVN Full Report2012/13 — Auditor‘sreport 173

Financial statements Corporate Social Responsibility

EVN’s claim to be a responsible provider of energy and environmental services implies balanced and equal treatment for the interests and requirements of all stakeholder groups. Based on this orientation, EVN views the dimensions “People”, “Environment” and “Economy” as three interrelated parts of a whole and works to develop equitable solutions whenever there are conflicts of interest.

EVN issued its first environmental report in 1990 to provide additional information for the stakeholder groups whose interest in the company goes beyond financial data. Sustainability reporting has been expanded and improved since that time, and led to the publication of the first sustainability report in 2002. The on-going establishment of internal processes in this area and the growing influence of sustainability issues on EVN’s business model resulted in the publication of the first integrated full report in 2009/10, which combined the previously separate sustainability report and the annual report. Therewith, the corporate communications strategy increasingly reflects EVN’s belief in maintaining an evenly balanced dialogue with all its stakeholders.

This full report gives equal treatment to all issues that are relevant for EVN’s various stakeholder groups. The criteria for selecting the issues and information are provided by the EVN materiality matrix, which is shown on page 33. The discussion of sustainability issues and the CSR programme are placed on the same level as the financial and corporate governance reports. The following chapter contains the CSR content that is not integrated in the other parts of the 2012/13 full report. An overview of the placement of this content along the GRI indicators is provided in a list on the end-cover flap. References to the GRI indicators are also included in the corresponding sections of the report. Links to additional information on the EVN website and other publications are intended to limit the scope of this report and supply detailed facts and figures on selected issues and projects.

174 EVN Full Report 2012/13 and engagement Governance, commitments – requirements. legal in changes all above ments, business and diversity, cultural of areas the in challenges new created year terms,whereby thelastappointmentswere made in2013. fromconsumers board’sThe Austria. Lower two- serve members of interests the represent to selected are who members 24 has Board Customer The dialogue. customer the intensify to is tion func- whose 2011, since committee a by represented been also has “customers” group stakeholder The 176f.) page on found be can boards advisory these on (Details Fund. Social EVN the of board advisory the on serve who experts external the of how know- the on draw also can Board Executive the commitment, employee representatives. For guidance on issues related to social as well as experts external and internal independent of consists committee This Responsibility. Social and Environmental Commit- for tee Advisory the by provided also is issues sustainability operating segments. the of goals and strategy corporate the with coordination and issues CSR of management targeted the for allows composition committee’sBoard.This Executive the with together team broad management entire the includes now and practices best pean Euro- reflect to 2011/12 in expanded was It sustainability. ing regard- questions with deal to installed was committee steering CSR A topics. specific for and established are committees that groups steering working by supported is Board, Supervisory the with coordination close in out carried is which Board, tive on page89. on starting report found be can EVN’sinvestments of major overview governance an page 51; corporate the in described is – regulations: international following the and directives management internal regularlyreflectis to Conduct adapted of current Code develop EVN The Russia. and Macedonia Bulgaria, in subsidiaries the of languages the and English German, in available is and culture corporate EVN’s for conduct of rules and most principles the important explains It Conduct. of Code a issued EVN borders, national and barriers language across culture corporate shared

nvra Dcaain n ua Rgt (.. ad the Fundamental Freedoms and (U.N.) Rights European Human Convention on Declaration Universal UN GlobalCompact EVN‘s dynamic international expansion in recent years has also on Board Supervisory and Board Executive the for Assistance Execu- the by Group EVN the of development strategic The EVN of structure organisational and management The andmanagementstructure Corporate governance ethics. In order to support the development of a of development the support to order In ethics. for the Protection of Human Rights and t s ae on based is It values – hold training and sessions for the employees in their respective organise areas. DCOs, responsible the The with 2013/14. together year managers, financial the in themes interrelated these compliance of were discussedinaninteractiveanddialogue-orientedprocess. aspects various the which in hours, five lasted unit training Each beginning. very and the from input direct importance provide the underscore to courses these in part took also Board Executive The 2013. October and September during held were managers 100 roughly for courses Training culture. compliance sustainable a of establishment the for models role as serve and function key a have they EVN’ssince to managers, ing thecompletionofriskassessmentsinindividualareas. follow- developed also were measures Concrete compliance. of understanding uniform a establish to and responsibility of areas future the outline to members, Committee Compliance the of – – – and furtherdeveloptheCMS. reports directly to the Executive Board, was created which to establish, operate (CCM), Department Corporate Management The (CMS). Compliance system management compliance a of development the concerning taken were decisions fundamental – – – –

EVN‘s compliance Code Austrian CorporateGovernance Public Foreign of Bribery Combating on Convention OECD OECD GuidelinesforMultinationalEnterprises ILO Declaration on Labour (International ILO n scn se, V epoes il e aiirsd with familiarised be will employees EVN step, second a In The first implementation phase of the new CMS was directed Three workshops were held in spring 2013 to define the roles and allDCOs. units business strategic all of heads the services, corporate of representativesand heads department selected plus CCO the – members 16 has committee This CMS. the develop further compliance violations, to provide advice on basic issues and to advisory internal an as established was (CC): Committee Compliance the individual segments/countries based on a risk assessment. in programme (DCO, compliance the implementing for responsible Officer Compliance Decentral/National wide CMSthatcoversallGroup functions. Of Compliance Chief The CMSincludesthefollowingfunctionsandunits: Officials BusinessTransactions inInternational Policy Social and Enterprises Multinational concerning Principles of omte fr h CO o oio ad evaluate and monitor to CCO the for committee organisation was modified in 2011/12, and Fundamental Principles and Rights at Work ficer (CCO): ensures a modern, Group- modern, a ensures (CCO): ficer Organisation) TripartiteDeclaration Organisation) EVN Full Report 2012/13Report Full EVN C) is NCO): 175

Corporate Social Responsibility This programme will have reached nearly 2,700 employees dur- The CSR measures in the individual business units are moni- ing the period from November 2013 to March 2014. Support tored annually. In 2012/13, workshops on the main CSR areas of for the managers and DCOs in this implementation is provided activity were held in Macedonia and Germany. The main areas by CCM. Training courses for the employees in the subsidiaries of activity were further refined in Croatia and Bulgaria, whereby in South Eastern Europe will follow during 2013/14 (approxi- discussions with external shareholders were also held in Croatia. mately 5,000 employees). The minimum standard has been set at A CSR organisation was established in Macedonia based on the 2.5 hours per employee. All training courses across the group Austrian structure, and CSR steering committees and advisory are based on the same standards with identical materials. Special teams were also created in Bulgaria, Germany and Croatia. compliance training sessions are offered for the Executive Board and Supervisory Board as needed. In addition to these developments, CSR measures in 2012/13 focused on coordination with corporate functions such as risk The EVN Code of Conduct is available under management, compliance and internal audit. For example, www.evn.at/Code-of-conduct.aspx. CSR-relevant risks were identified and included in the annual For information on EVN’s capital market communications, risk inventory. Internal audit also included CSR as a review point see page 43f Investor Relations. in a pilot project and will place added emphasis on this subject See page 177 on EVN AG in sustainability indices. in future audit processes. A workshop was held to improve the understanding of human rights requirements on EVN, which was CSR organisation directed by the UN Global Compact. This workshop will form Sustainability and the related goals represent a fundamental the basis for the improvement of internal processes, above all in part of EVN’s corporate strategy. The actual integration of sus- procurement, and the distribution of the acquired knowledge in tainability issues is the responsibility of the CSR steering com- the relevant specialist departments. mittee, which is supported by the CSR advisory team on matters relating to content. This team provides fresh input and impulses These measures should strengthen the understanding, cred- for new CSR measures in agreement with the relevant special- ibility and transparency of CSR throughout the EVN Group and ist departments. The involvement of all corporate units and the underscore the key corporate values: E(V)Nsure, E(V)Ncourage identification of the CSR development potential in all units are and E(V)Nable. ensured by the nomination of CSR network officers in all specialist departments. Previous CSR activities are reviewed and current Additional information on the CSR organisation can be activities and opportunities for improvement are discussed twice found under www.responsibility.evn.at. each year at a CSR conference. The handling of CSR issues at EVN’s subsidiaries in Bulgaria, Macedonia, Croatia and Germany Advisory Committee for Environmental and is supported by the implementation of CSR structures that are Social Responsibility based on the Austrian model. EVN’s Environmental Advisory Board was established in 1992 to advise the Executive Board on environmental and sustaina Activities in 2012/13 also reflected the central importance bility issues. In 2006, the scope of its activities was expanded of sustainability aspects. Discussions were held in all EVN func- to include social responsibility and its name was changed to the tions to strengthen the integration of CSR goals. For example, current designation. The 28 members meet twice each year to branch-specific focal points were identified in accordance with discuss current issues. The meetings in 2012/13 focused on the the EVN materiality matrix as the basis for defining corporate following topics: “Energy Efficiency: Status and Outlook“; “The CSR targets. The effective management of CSR activities in Energy Efficiency Law – an Entrepreneurial Challenge!“; “Social agreement with the corporate strategy and the operating units Issues – Central Challenges“ and “Energy Poverty“. formed the focal point of these efforts. The members of this committee are listed on page 216 and under www.evn.at/Advisory-committee-forenvironmental-and-social-responsibility.

176 EVN Full Report 2012/13 Executive Board and to the Audit Committee of the of Committee Audit the to and Board Executive the contextofEMAScertifications. sustainability index VÖNIX, FTSE4Good, Ethibel, and ECPI) and in Austrian the to (according investment sustainable a as listing its ally together with the company’s performance in connection with independent auditor. The Executive Board is also evaluated annu- an by out carried assessment GRI external the by augmented is process This A+. level application GRI, to according report bility sustaina- for figures and facts publishing and summarising ing, processanalys- annual collecting, Boardthe of Executive is the – for controlling its sustainability performance – and therefore also instrument effective most EVN’s Code, Governance Corporate the EVN Gr of goals and strategy the endanger could that identified were deficiencies serious No review. follow-up a in verified was ment manage- measuresby the defined of implementation The ment. improve- for suggestions with together managers responsible mercial com- and technical The Macedonia. and Bulgaria in subsidiaries Group. Separate internal audit EVN the in units business and procedures for services Board. reporting year. the during supported were Executive projects Twenty AG. the EVN to of Board unanimously made are funds of use the for recommendations Their Landau. Michael Director Caritas man, Preitschopf, Harald Wieser, Elisabeth Baum-Breuer and the chair Helga Peterschofsky-Orange, Gabriela are members committee year.The each twice meets are that committee sponsoredexpert an by be made to projects the on Decisions 100,000. EUR of endowment annual an has and Austria Lower in institutions sponsoring of activities in social areas. It provides transparencysustainable support for youth the increase and bundle to 2008

V’ itra adt eatet eot drcl t the to directly reports department audit internal EVN’s Austrian the of provisions the with compliance to addition In of theExecutiveBoard’s performanceonsustainability Control ofsustainabilityperformanceandassessment EC8. indicator A listofthesupportedprojects isprovided under h EN oil ud a cetd t h ed f September of end the at created was Fund Social EVN The EVN SocialFund problem ar t rsosblte icue h poiin f auditing of provision the include responsibilities Its oup. eas identified in 2012/13 were reported to the departments were also established at the Corporate Social Responsibility Social Corporate

Supervisory

plans thefuture activitiesoftheAustrianUNGCNetwork. and activities past the evaluates committee steering the in 2009, Established 2012. since Network Compact Global Austrian – – the followingfocalpoints: as of 1 October 2010. Among others, this adjustment introduced GT Österreichische fürUmweltundTechnik Gesellschaft austrianbusinesscouncilforsustainabledevelopment UNGlobalCompact ÖGUT OECDGuidelinesforMultinationalEnterprises respACT UNGC OECD initiatives External

EVN has been represented on the steering committee of the of committee steering the on represented been has EVN initiatives Support forexternal page 51. be foundintheCorporate GovernanceReportstartingon asinformationonEVN’ as well andriskmanagementactivities report oninternalaudit The Inclusion ofsustainabledevelopmentsintherespective areas Inclusion ofvalue-orientedindicators The remuneration scheme for top management was amended — Governance, commitments and engagement and commitments Governance, — EVN Full Report 2012/13Report Full EVN s remuneration schemecan 177

Corporate Social Responsibility Membership in associations and interest groups EVN is a member of numerous industry-relevant organisations and associations.

Selection of memberships (in alphabetical order) AEA Österreichische Energieagentur AIA Association for Internal Auditors of Macedonia AmCham American Chamber of Commerce in Macedonia ATDB Association of District Heating Companies in Bulgaria ATEB Association of traders with electricity in Bulgaria BBCE Bulgarian Branch Chamber of Power Engineers BHRMDA Bulgarian Human Resources Management and Development Association BIA Bulgarian Industrial Association BPVA Bulgarian Photovoltaic Association Bulgarian WEC Bulgarian National Committee to the World Energy Council CEIBG Confederation of the Employers and Industrialists in Bulgaria CEWEP Confederation of European Waste-to-Energy Plants CIRA Cercle Investor Relations Austria DBIHK Deutsch-Bulgarische Industrie- und Handelskammer DWA Deutsche Vereinigung für Wasserwirtschaft, Abwasser und Abfall e. V. EBA European Business Association ECNWM Economic Chamber of North-Western Macedonia ECRM Economic Chamber of the Republic of Macedonia EDSO European Distribution System Operators (for Smart Grids) EMI Energy Management Institute, Bulgaria ERC Energy Regulatory Commission of Macedonia FGW Fachverband der Gas- und Wärmeversorgungsunternehmen GEC German Economic Chamber GWP German Water Partnership e. V. IV Industriellenvereinigung Österreich MABA Macedonian Austrian Business Association MAKO Cigre Macedonian National Committee – MAKO Cigre MCC Macedonian Chambers of Commerce MGEA Macedonian-German Economic Association MHRA Macedonian Human Resources Association OE Oesterreichs Energie ÖGUT Österreichische Gesellschaft für Umwelt und Technik ORM Organization of Employers of Macedonia OVE Österreichischer Verband für Elektrotechnik ÖVFA Österreichische Vereinigung für Finanzanalyse und Asset Management ÖVGW Österreichische Vereinigung für das Gas- und Wasserfach ÖWAV Österreichischer Wasser- und Abfallwirtschaftsverband Plattform Thermik respACT austrian business council for sustainable development UNGC UN Global Compact VABU Verband für Anschlussbahnunternehmen VÖEB Verband Österreichischer Entsorgungsbetriebe VGB PowerTech e.V. WK NÖ Wirtschaftskammer Niederösterreich ZEMAK Association of Energy Department Engineers of Macedonia

178 EVN Full Report 2012/13 Economic responsibility

applies forfinancialsupportwhere applicable. and conditions related evaluates EVN credits, tax development tion of incentives, e.g. the Eco-Electricity Act or the research and sector.public wherecases In utilisa- the for allow laws individual the from support financial additional no receives EVN projects. research and development, innovation, on spent was funding) public from 28.1% (thereof 1.6m EUR 2012/13, In AG. EVN in

as municipalities. services for household, industrial and business customers as well numerousprovides EVN efficiency, energy customers’ increasing ofmeans a As long-term. the over 50% to generation electricity in sources energy renewable of share the raise to is EVN’sgoal efforts. these of points focal particular are services energy able sustain- and efficiency energy energies, renewable of fields The security. supply future ensures also and challenge this by vided new technologies, EVN uses the opportunities and impulses pro- on intensively focusing By models. business new requires that challenge a represents change climate approaching the tions, opera- of area own its in effects climate-relevant of reduction important factors for EVN’s corporate strategy. In addition to the responsibility. the results, of tation dentiality competition, equal treatment of all applicants and bidders, confi- ties, EVN complies with the principles of efficiency, fair and free activi procurement its all In conservation. resource maximum o h dvlpet f noaie nry ouin together solutions with energy innovative of development the to attached also is importance Particular EVN. at processes ment procure all of parts integral represent dialogue open an and

see page63. EU EmissionsTrading Scheme,onEVN’s businessactivities local suppliers EC6 Businesspolicies,practicesandtheshare of Aspect: Marketpresence stake 51% a holds GmbH Landes-Beteiligungsholding NÖ financialassistance EC4 Government and resear For furtherinformation onEVN’s innovation,development, reduce CO For furtherinformation onEVNinitiativesandprojects to such astheEUEnergy Eff For informationon theconsequencesoflegalparameters, A cooperative partnership approach, fair business practices business fair approach, partnership cooperative A also are consequences resulting the and change Climate EC2 Financialeffects ofclimatechange Aspect: Economicperformance business during transactions, transparency and transparency transactions, during 2 ch activities,seepages80and180ff. emissions,seepage187ff. partners, which ensures high service quality with quality service high ensures which partners, osrain f eore ad social and resources of conservation iciency Directive or the the documen the

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oensto o ifatutr ad n lcrct generation. electricity These investments are in designed to and improve supply security infrastructure and are of modernisation training andnetworkingplatformforfuture managers. a Academy, Summer EVN the as such programmes international as well as training leadership executive through Macedonia and Bulgaria in employees local of planning career the supports EVN bilities represents an important element of the corporate strategy. respective region. The strengthening of local management capa- the from come markets EVN the in managers the of most and employees all Nearly cultures. respective the of understanding provideeconomic eiw y l ivsos ivsmn ad on vnue part venture www.evn.at/integrity-clause (see website joint EVN the on and stakeholders and investment subcontractors ners, investors, all by review of responsibilities and duties the and ment ered bythistypeofcontrol. EVN’ clause. integrity the with compliance suppliers’ of evaluation the supports It fication. manufacturer’scerti the as well as packaging and recycling uct environmental on information additional for asks checklist The involved. areproducts risk when all above list, 50% intotalandtoover70%forconstructionprojects. prohibited. is ment of bidders, e.g. the preferential treatment of local suppliers, ons It points. rnils gover principles the follows also EVN provisions. applicable the with comply fore theremust areasand many procurementin public law EU under contractor sector the is EVN procurement. public on law federal contract. with each order and tender and represents an integral part of the o sples eie te udlns for guidelines the defines suppliers clause integrity for An process. this in suppli role important with an plays practices dialogue ers continuous procurement A align goals. to sustainability order with in agenda CSR EVN’s n the in Since 2011/12, each tender has included an additional check additional an included has tender each 2011/12, Since n eetn sples EN ut opy ih h Austrian the with comply must EVN suppliers, selecting In h se-yse ipeetto o sustainability of implementation step-by-step The In 2012/13, EVN invested EUR 328.4m in the expansion and expansion the in 328.4m EUR invested EVN 2012/13, In place primarilyinthepublicinterest EC8 Infrastructure investmentsandservices,taking Aspect: Indirect economiceffects employees local of planning career and involvement The EC7 Employmentoflocalpersonnel eeto o sples n ter rdcs s pirt for priority a is products their and suppliers of selection s idn fr l sples 10) n aalbe for available and (100%) suppliers all for binding is The ning share of local suppliers amounts to more than more to amounts suppliers local of share benefits for the entirethe Groupimprovefor andthebenefits competition s most ). important suppliers areimportant cov now EVN Full Report 2012/13Report Full EVN The integrity clause is included is clause integrity The n h E. h ueul treat unequal The EU. the in utial procure sustainable compatibility, upir i eleven in suppliers criteria prod 179 ------

Corporate Social Responsibility Caritas – “Kräuter-Café” coffeehouse; Combating energy poverty creation of jobs for young people with intellectual disabilities in the Laa/ Thaya region 7,000 EVN places high value on efficient, customer-oriented Caritas – educational project days in Lanzendorf 2,800 energy consulting. Accordingly, reducing energy consump- Caritas – Centre for Women’s Health; tion is one of the core principles of EVN’s advising activi- “Self-confident – Active – Creative“ girls‘ group 4,000 ties. Caritas and EVN together developed the “Combating Caritas – Holiday at the horse ranch for socially disadvantaged children, underage migrants and asylum seekers 5,000 Poverty” project based on the train-the-trainer principle Diakonie – shared apartment in Strengberg 5,000 to significantly reduce energy costs for people threatened SOS Kinderdorf – youth centre in Guntramsdorf 7,000 by poverty. In this context, Caritas social counsellors are Caritas – St. Gabriel centre for the support of refugees 7,500 equipped with the necessary know-how and special tech- Caritas – Family Centre in Baden 3,500 nical aids by EVN energy consultants and can offer energy saving tips directly in the home. This programme “helps Caritas – Centre for Women’s Health in Wiener Neustadt, asylum and integration in Lower Austria 10,000 people to help themselves”. Caritas – courses for children, language development 6,500

Caritas – Lerncafé coffeehouse and coaching 10,000 The project was implemented in six steps: Caritas – WerkStart 8,500 Step 1: Development of consulting tools (guideline, Diakonie Centre Spattstrasse – checklist) and selection of technical aids (energy “Neue Welt“ learning-in-residence group 8,000 measurement instruments, flow restrictor to Diakonie refugee service 3,200 reduce the use of hot water) Hin und Weg Bildungsunternehmen OG – Step 2: Expert advice on site (initial evaluations) construction of a workshop 4,950 Step 3: One-day basics course for social counsellors Association for the support of young people, Neunkirchen 7,500 with EVN energy experts Provincial youth residence in Pottenstein 6,000 Step 4: Joint advising on site Total 127,050 Step 5: Further training session, feedback round Step 6: Energy-saving consulting on site by the social counsellors EC9 Indirect economic impacts As an employer and contractor as well as a supplier of energy and environmental services, EVN makes numerous positive contributions to the national economies in which it operates. The therefore in the public interest. EVN also meets its responsibility most important contributions are outlined on the front-cover to the various stakeholder groups outside the operating flap of this report, whereby the multiplier effects for the entire business. The EVN Social Fund is endowed with EUR 100,000 economy are not included. each year and concentrates on support for institutions in Lower Austria that work with children and adolescents. EVN is also active outside Austria and provides support, above all, for day care centres, children’s homes and schools in Bulgaria, Sector Supplements – Economy Macedonia and Croatia. EU7 Programmes for demand side management The Social Fund supported the following projects in 2012/13: In 2012/13, EVN’s focal points in the area of demand-side management included, among others, issues related to energy

Projects EUR storage and energy efficiency in end customer households. Caritas – “Aus-Zeit“; play group for refugee children and support for young mothers 6,600 The substantial increase in equipment for the generation of Caritas – Family Centre in Baden; psychotherapy for electricity from renewable energy sources has created new chal- children with behavioural difficulties 7,000 lenges for utility companies and has had an effect on EVN’s innova- Caritas – Family Centre in Mistelbach; psychotherapy tion, development and research strategy. One particularly impor- for children between eight and twelve years of age with tant issue is the development of solutions for managing the high activity and attention deficit disorders as the result of volatility of energy generation from windpower and solar power. complex traumatisation 7,000 The strong daily and seasonal fluctuations in renewable energy

180 EVN Full Report 2012/13 – – – advising activities: EVN’s in and progress in currently projects research and ment develop- innovation, other numerous in reflected is consumers stantial timingdifferences betweenenergysupplyanddemand. sub- the cushion would that equipment energy renewable for energy storage”, involves the testing of a battery storage system of energy and for mobility. The second project, “multi-functional hydrates could be used as energy sources both in the generation ural gas grid. In periods of energy scarcity or high demand, carbo- surplus renewable energy could be stored as methane in the nat- conducted in the form of a feasibility wasstudy to project, determine whether first the GECO, high. is wind and sun like carriers surplus energy at times when the availability of renewable energy supply volatility leads to strong resultingprice shifts on the energy markets. the because consequences economic significant have sources energy renewable from generated electricity of volume is extremely expensive. On the other hand, the fluctuations in the shutdown temporary their and level minimum specified a under operate cannot they because plants power conventional of tion opera- the for challenges to hand, one the on lead, generation

windows canbecheckedviasmartphone. the of position the and airing during stopped automatically is flow heat the use, in not are tempera- that rooms in lowered is The ture 20%. to up by costs heating reduce to help can which system, management electricity and heating room effi - ciency. energy One example is the their EVN SmartHome mobile, increaseindividual to products innovative of range nry fiiny services: efficiency Energy online energymanagementsystem. display at any time and to analyse their energy profile with an meters allow customers to see their energy consumption on a Smart 2019. of end ifthe by 95% and, least at possible, 2017 technically of end the by 70% least at 2015, of end the by 10% least at schedule: following the to according meters intelligent with grid its to connected points meter the of age percent- certain a equip to required is operator Each ators. for period archiving the collected data and the frequency of of length the readings, meter of thestorage and measurement the for defines It meters. requirements smart new minimum technical the established Energy efficiency pr Metering: Smart The high potential for improving the energy efficiency of endefficiency of energy improving the for potential high The of storage the test to projects two conducted therefore EVN discussion partner for all aspects of energy supply for many for supply energy of aspects all for partner discussion In October 2011, an E-Control regulation E-Control an 2011, October In oducts: EVN offers its customers a wide V hs en competent a been has EVN data output to grid oper - – – goals. Followingisaselectionoftheseprojects. differwith issues innovation other on also but EU7, indicator eerh n dvlpet oa pit lse aoe under above listed points focal development and research

process withoutwaste. sustainable a creates thereby and station power thermal a in utilisation through cycle production the to returned is which biogas, into processed are biomass extracted the from rials mate- residual The bioplastic. the for basis the form which bacteria, the of growth the for climate optimal an provides water, have particularly good CO good particularly water,have of bodies natural in found are which microorganisms, These behaviour. controland productioncapacity operation, continuous for ity suitabil- its of evaluation the for allow researchand purposes for years two roughly The for energy. operate will into plant converted demonstration be then can steam The tube. the focuses the sun during the course of the day, the reflecting use economically feasible. its In the HELIOtube, makes which can move and with membrane reflecting a of help the with sunlight the concentrates foils plastic of made concentrator suninflatable An concentrator). (sun HELIOtube so-called a is Dürnrohr in plant demonstration Power) Solar (Concentrated The Technology: of University the addition of the separated CO involves production, automobile for material raw interesting an also is which bioplastic, of generation The bioplastic. as of this project is to reduce CO reduce to is project this of the flue gas of the coal/gas power plant in Dürnrohr. The goal CO2:use: oa eeg project energy Solar nuous fertilisation with CO time, to extract pure CO ogy. It evaluates the separation of carbon dioxide (CO dioxide carbon of separation the evaluates It ogy. Technolof - University Vienna the and Environment & Energy ANDRITZ with together built and designed was equipment This operations. started plant power Dürnrohr the at ment In promote sustainabledevelopments EU8 Programmes tosafeguard energysuppliesand new servicesare addedonaregular basis. exchange and a business energy consulting programme – and heat certification, energy service, renovation others, among includes, portfolio related The municipalities. and customers commercial companies, industrial as well as households for offering information and service extensive an has and years Corporate Social Responsibility Social Corporate 021, V nt ny ocnrtd n h innovation, the on concentrated only not EVN 2012/13, n etme 21, h CO the 2011, September In sun’s rays and produces steam in an evaporator an in steam produces and sun’srays 2 ih EIVS G n te Vienna the and AG HELIOVIS with for future use as a raw material, e.g. 2 in the pilot plant’s special reactors EVN Full Report 2012/13Report Full EVN 2 eta eeet f hs CSP this of element central emissions and, at the same the at and, emissions — Economic responsibility Economic — 2 2 to a cyanobacteria culture. binding properties. Conti properties. binding 2 eoiin equip- deposition membrane 2 ) from) 181 ent

Corporate Social Responsibility Multi-functional energy storage facilities

Renewable energy sources like the wind and the sun are from renewable sources. In the “multi-functional energy environmentally friendly, but plants do not always generate storage“ project, the energy generated by the pilot plant is electricity when it is needed by the customer. Solutions for stored in a vanadium-redox-flow battery (10 kW/100 kWh). the interim storage of energy are therefore required. This is The generation plant includes 15 kWp of photovoltaic true, above all, when the wind and the sun are to be used equipment, and 1.5 kW of small windpower equipment in to generate larger volumes of electricity. connection with the vanadium-redox-flow battery and can produce an output of 26.5 kW. New type of battery storage system The “multi-functional energy storage“ research project Research goals attempts to provide information on how the electricity gen- The goals of this project are to develop a variable renew- erated from renewable energy sources can be brought into able energy power plant – comparable to a pump storage line with consumption through the use of a battery storage power plant – and to produce a feasibility and profitability system. The central element of this system is a new type of analysis for multi-functional energy storage systems. The storage battery that has been combined with photovoltaic research will also cover different application possibilities for and windpower plants. It is being used in the development renewable energy power plants by private households and of systems to make volatile energy carriers like the sun and power plant operators as well as their use in a system pool. the wind easier to plan. Pump storage power plants are Included here, for example, are peak-off-peak arbitrage, normally used to store large volumes of electrical energy the supply of balancing energy and energy autonomy.

– Sludge2energy: This process presents the decentralised connection between the drying of sewage sludge with subsequent mono-combustion and electricity generation by means of a gas turbine. In this way it guarantees the optimal reduction of sewage sludge volume and mass. No external thermal energy is needed due to the independent (self-sufficient) combustion and drying process, and most of the residual waste material can be recycled (e.g. in construction).

182 EVN Full Report 2012/13 responsibility Environmental

– employees and public general the of awareness the Raising – – – – – – to and resourcesmaking an active contribution to of climate protection. One use careful the ensuring to committed is – EVN includesthefollowinginitiativesandstrategicapproaches: by management protection Climate environment. the on impact of a balanced mix between optimal supply security and a minimal of reduction their energy consumption. The the decisive factor here is on the creation customers for services advisory extensive renewable energy sources, efficiency improvement measures and on focus strong its through targets protection Austria’sclimate and EMAS standards since1995. 14001 ISO to according certified been has requirements, safety occupational include to expanded was which locations, EVN the for system management environmental The statement. 1990 and defined its goals and values in an environmental policy subsidiaries. base inLowerAustriatoitsinternational home company’s the from management oriented ronmentally envi- of principles the transfer also to is connection this in goal

The EMAS-certified plantsintheEVNGroup EMAS-certified are listedunder The page 34. EVN’s environmental policystatementcanbefoundon emas/ www.umweltbundes mental aspectsinprocurement measur Internal through trainingcoursesand informationevents ity conceptssuchaselectricity-ornaturalgas-powered cars introductionthe of in participating Actively local energycarrierslikebiomassandbiogas the Increasing their energyconsumption information Providing projects (amongothers,CCStechnologies) research and development innovation, in participation Active plants andnetworks the Improving sun, biomassandbiogas energy renewable on Focusing EVN company, services environmental and energy an As V mks n motn cnrbto t te tanet of attainment the to contribution important an makes EVN in department protection environmental an established EVN energy efficiency of the EVN’sthe of productionefficiency own energy added value in the region through the use of use the through region the in value added s uh s n nrae fcs n environ on focus increased an as such es n avc t csoes n reducing on customers to advice and amt.at/umweltsituation/ums/ sources such as water, wind,water, as such sources alternative mobil- alternative primary

components fortechnicalreasons. been decontaminated. partner project the as Macedonia EVN by operated transformers first the and 2012/13, in operations started fully were of in replacement plant decontamination the for (UNFCCC) Change on Convention Climate Framework Nations United the by out carried (PCB). Transformers are tested for PCBs before they are scrapped. biphenyls polychlorinated for limits legal exceed not do Bulgaria n completed and

EMAS certification Only a limited amount of recycling material is used in the main EN2 Useofrecycled materials in out carried was assessment comprehensive A and Austria in plants EVN the that confirm surveys Previous EN1 Materialsemployedbyweightorvolume Aspect: Materials with thestartofthisproject scheduledfor2014. next step involves the certification of EVN’s headquarters, environmental This EMAS. under certified plantsbeen have will power thermal EVN’s by supplied energy the of 100% 2014, of quarter first the of end the By progress. in currently is Korneuburg of certification the and after; there - shortly followed plant power Dürnrohr the EMAS; under certified be to Austria Lower in plants first the of its power plants in 1995. power Theiss The plant was one and resources reduce emissions. conserve EVN started the certification process for to measures defines directive this authorities, public of requirements the and ulations reg - legal with compliance of audit internal the to tion is to establish a continuous improvement process. In - addi world, the in certification environmental comprehensive and demanding most the as seen which is directive, EMAS the of goal The system. management ronmental envi- voluntary a as 1993 in EU the and Audit Eco-Management the EMAS, for WärmeEVN by use in been also has system management lae o PB i sme 21. h pat success- plant The 2012. summer in PCBs of cleaned 15 years and currently covers 40 certified plants. The The plants. certified 40 covers currently and years 15 cee ws nrdcd by introduced was Scheme, n ae 01 Wti te otx o a of context the Within 2011. late in kpe a tse and tested was Skopje EVN Full Report 2012/13Report Full EVN

transformers have alreadyhave Macedonia Cs a PCBs, project 183

Corporate Social Responsibility Material utilisation for energy generation1) 2012/13 2011/12 2010/11 Fossil fuels2) Terajoule 18,195 18,900 22,670 Biomass Terajoule 2,757 2,336 2,311 Waste3) Terajoule 4,205 4,502 4,178

1) Of the EVN thermal and combined heating and stations in Austria and Bulgaria as well as the waste incineration plant in Dürnrohr, Zwentendorf 2) Natural gas, anthracite, heating oil 3) For incineration by the waste incineration plant at Dürnrohr, Zwentendorf

Material utilisation – network construction in Lower Austria1) 2012/13 2011/12 2010/11 Additional power lines km 1,087 505 2,403 Additional natural gas pipelines km 132 101 90 Additional heating lines km 68 59 16

1) This includes overhead lines and underground cables.

Aspect: Energy on the expansion of wind energy in Lower Austria, whereby the EN5 Energy savings as a result of environmentally installed capacity should rise to 300 MW by 2015. conscious use and efficiency enhancements Efficiency improvements have been realised in many areas For additional projects to increase the share of renewable through the use of new technologies and continuous optimi- energy, see indicator EN18 beginning on page 187. sation measures, also in connection with additional voluntary Details on advising services can be found under target agreements under EMAS. For example, the environmental www.evn.at/optimising-energy. management system in the Dürnrohr and Theiss power plants led to an annual reduction of 350 MWh in electricity consump- EN7 Initiatives for reduction of indirect energy use and tion for lighting and heating/cooling from 2010 to 2012. That achieved savings represents the annual energy consumption of roughly 90 average EVN uses electric vehicles for short distances wherever feasi- households. The drinking water consumption at two EVN Wärme ble to reduce indirect energy use. The increased use of vehicles district heating plants was also reduced by 75,000 m³. with alternative power sources for longer distances is also a focus of activities. Business travel is reduced as far as possible through EN6 Initiatives for renewable energies and the increased use of video conferencing. In Bulgaria, the plant higher energy efficiency windows were replaced and a solar-thermal system for inde- In order to ensure supply security, EVN has set a goal to gener- pendent warm water supply was installed at the headquarters to ate 30% of its electricity sales from its own facilities or electricity reduce the indirect use of energy. purchase rights over the long-term (2012/13: 18.3%, 2011/12: 15.5%). A flexible energy mix is decisive for EVN’s future viabil- Sixty-six photovoltaic panels were installed on the south facade ity in this respect. Plans also call for an increase in the share of of the EVN headquarters during 2012/13. The aggregate covers renewable energy in electricity production to 50% as part of the 105.6 m² and generates approximately 10,500 kWh of electrical Austrian energy strategy 2020. This will include a special focus energy per year that is fed into an electro-fuelling station.

EN3, EN4 Direct and indirect own energy consumption1) broken down by primary energy sources 2012/13 2011/12 2010/11 Natural gas MWh 6,229 6,846 7,034 Electricity MWh 316,504 313,676 301,128 Heating MWh 10,260 10,181 8,466 Heating oil2) MWh 324 246 348 Total MWh 333,318 330,949 316,976

1) Since energy purchases for customers and for internal consumption ar e not broken down separately, direct and indirect primary energy consumption are not shown separately. 2) Heating oil is used in Macedonia only.

184 EVN Full Report 2012/13 importance onresponsible networkplanningandconstruction. imise the environmental impact on these areas, EVN places great Lower Austria is designated as a protected area. In order to min- of territory surface the of 25% Approximately coverage. supply whenever possible. 1) plantsinLowerAll Austria,BulgariaandMacedonia Drinking water(municipalsuppliers) Water withdrawal million 237.5 totalled River Danube ratethe along stations flow power thermal water the at cooling the 2012/13, In wells. groundwater power plants. gas-fired EVN’s by use lower to due particular in comparison, at EVN Wärme. The use of cooling water declined in year-on-year utility water in Bulgaria as well as the start-up of new equipment resulted, above all, from a change in the reporting of cooling and annual volume of the Danube recorded at the Korneuburg Korneuburg the at recorded gauge Danube the of volume annual Water use(groundwater) Cooling water(surfacewaters) threshold of5%. million 60,644 to

Environment andW Source: AustrianHydrographical Annual2010,Federal MinistryofAgriculture, Forestry, An extensive supply network is necessary to ensure completeensure to necessary is network supply extensive An EN11 Landuseinprotected areas Aspect: Biodiversity water process as wastewater reuse plants power EVN The EN10 Recovered andreused water V pat oti ter ae fo mncpl rvdr or providers municipal from water their obtain plants EVN by thewithdrawalofwater EN9 Sources ofwaterthatare fundamentallyaffected 2012/13 during consumption water utility in increase The EN8 Total waterwithdrawalbysources Aspect: Water 1) mauig on nme 274) wih amounted which 207241), number point (measuring

³ Ti corr This m³. ater Management

³ ad ean clearly remains and m³, sod t 03% f h average the of 0.39% to esponds eo te allowed the below

Corporate Social Responsibility Social Corporate

EVN Bulgaria faunaandfloradirective) they contain92/43/EEC(briefly: Directive forconservingnatur Special areas ofconversation(SAC) bytheNatura 2000network, Directive 79/409/EEContheconservationofwildbir Special protected areas (SPA) bytheNatura 2000network, Protected areas inLowerAustria Protected areas inBulgaria m m m 3 3 3 3,7,4 4,3,4 293,400,737 240,537,744 237,576,241 2012/13 ,2,6 ,4,9 1,377,166 1,247,690 1,720,062 320,877 al habitatsandtheanimalplantspecies — Environmental responsibilityEnvironmental— EVN Full Report 2012/13Report Full EVN 011 2010/11 2011/12 324,143 ds (briefly: Birdsds (briefly: Directive)

305,671

185

Corporate Social Responsibility EVN’s properties in Austria in protected areas or adjacent to protected areas1) Number Area (ha) Properties in protected areas (>50 m²) 666 471.2 Properties in protected landscape areas (>50 m²) 404 367.7 Properties in Natura 2000 areas (>50 m²) 515 236.9 Properties directly adjacent to protected areas 18 22.0 Total 1,603 1,097.8

1) Excluding pipeline routes; multiple answers possible

EN12 Impact of business activities on biodiversity The second stage at the Ashta hydropower plant in Albania, EN13 Protected or restored natural habitats which is operated together with Verbund, was put into operation EN14 Strategies and measures for the protection of in the reporting year. The first stage has been in operation since biodiversity September 2012. Full operations with both stages will raise the EVN is committed to minimising the impact of its business total output of the hydropower plant to 53 MW. The Ashta plant activities on nature. All projects include a special focus on pro- will generate 240 million kWh of electricity each year and not tecting the natural habitats of local flora and fauna. For example, only supply roughly 100,000 households with renewable energy, hydropower plant operations pay special attention to the sen- but also save 79,000 tonnes of CO2 annually. This project was sitive biodiversity of the surrounding water areas by complying built in accordance with the rules of the Clean Development with administrative requirements for the intake temperatures Mechanism (CDM) defined by the United Nations Framework of cooling water. This helps to minimise negative effects on the Convention on Climate Change (UNFCCC). The CDM calls for environment. a wide-ranging dialogue with stakeholder groups, which was implemented in a unique form for this Albanian project. EVN is Reservoir monitoring plays an important role in protecting also working on numerous other projects to protect biodiversity: the biodiversity near hydropower plants. An annual conference – Fish bypasses at the small-scale hydropower plants in Hohen- is held with the public authorities and stakeholder groups at the berg and Schaldorf Ottenstein reservoir to discuss issues that include the reservoir as – A project with the association for the protection of great a habitat for fish. This year’s meeting focused on the problems bustards in Austria (continuation in the LIFE+ project) caused by the fluctuating water level for fish that prefer to spawn – Nest platforms for storks (endangered species of white and in shallow water and also included a search for solutions. A pro- black storks) in Bulgaria and Macedonia ject was subsequently launched by the local fishing authorities – A project with the Bulgarian Association for Bird Protection to improve conditions for these fish species, one which is also to protect the imperial eagle and gyrfalcons (EU LIFE+ pro- supported by EVN. In the course of the project, measures such as gramme) the creation of artificial spawning areas made of deadwood as – A project to protect the bird life at the Burgas lakes in Bulgaria well as the construction of shallow water biotopes and floating – A project with the Macedonian Environmental Association for islands have been developed. the Protection of Birds in the Ovce Pole region (assessment of the impact of energy grids on birds) Another measure implemented in 2012/13 to protect bio – Participation in the construction of a Macedonian national diversity at the Ottenstein reservoir was the installation of online environmental network MAK-NEN monitoring equipment. This equipment, which was developed by DWS-Hydro-Ökologie GmbH together with EVN’s staff depart- As a continuing measure for the management of the impact ment for environmental controlling, will continuously record and on biodiversity, EVN works to integrate supervision based on control key parameters for the measurement of water quality. A ecological principles into its construction projects. probe can extend to the bottom of the lake from its base on a floating measurement station to measure the pH, temperature Aspect: Emissions, wastewater and waste and oxygen content at various levels. The goal of this monitoring EN16 Direct and indirect greenhouse gas emissions and extensive data collection is to research the effects of return EVN takes numerous steps to improve the energy efficiency pumping operations and heavy rains on the water quality and of its operations and reduce emissions from both production and algae development. customer usage. CO2 emission data from the production process

186 EVN Full Report 2012/13 13.700 tonnes of CO of tonnes 13.700 of CO of Energievertrieb GmbH & Co KG in 2011/12 totalled 0.0 inresulted m.b.H. Energievertriebsgesellschaft Naturkraft of mix for thissameperiod.

represents approximately 1% of the Group’s total CO on-year increase inCO year- slight a to led Bulgaria, Plovdiv, in plant cogeneration the energy carriersused. msin trading emission factors, CO factors, and Austrian European, by required as collected are AlsoseeEN20.

EVN’s business trips and air travel resulted in approximately in resulted travel air and trips business EVN’s EN17 Otherrelevant greenhouse gasemissions consumption, seeEN7. For energy detailsconcerning initiativestoreduce indirect h evrnetl mat f h spl mx sd by used mix supply the of impact environmental The Higher production volumes at the Dürnrohr power plant and plant power Dürnrohr the at volumes production Higher 1) 2) 2010/11 in t/MWh and districtheating(power)plants Specific CO 2012/13 2011/12

g/kWh g/kWh Bulgaria

Austria of C useof biomass wasnotconsidered inthecalculation The Annual average ofAustrianandBulgarianplants. 2 emissions and 0 g/kWh of radioactive waste. The supply The waste. radioactive of g/kWh 0 and emissions O

2 emissionsasbiomassisconsidered tobeCO of CO 2 emissions are calculated in relation to the primary the to relation in calculated are emissions 2 emissionsoftheEVNthermal 2 emissions and 0.0 g/kWh of radioactive emissions waste and 0.0 g/kWh euain. ae o te ie emission given the on Based regulations. 2 emissions during the reporting year.reporting That the during emissions 2 emissions. 0.296 0.314 0.333 0.358 0.360 0.399 )2) 1) 2 neutral.

270.64 2 emissions. Bulgarian

g/kWh EVN

Corporate Social Responsibility Social Corporate in Gänserndorf will save 3,800 tonnes of CO 400 serves up to 500 households, while reducing CO reducing while households, 500 to up serves 2012 in built plant heating neighbourhood biomass The supply. heat its for sources energy renewable on also but energy, wind saves approximately 23,000tonnesofCO and households 10,000 roughly to MW,electricity 15 supplies it of output an With 2013. September in opened naturkraft, evn provided inthefollowingsection: evc GmbH Service these plants. 1.5 forestrywood and cooperation Stadtwerke Neustädter a Wiener with agreement on based chips wood with supplied are These plants Austria. in heat natural of supplier largest the it makes of CO heat for up to 12,000 households and save up to 43,000 tonnes supply will plant power MW 20 Steyr.This in 2012 October ing dur operations started plant power biomass constructed newly ery 5,0 tne o CO of tonnes 151,000 nearly of savings annual in resulted 2012/13 in taken steps The sions. eue CO reduce and kW 1,500 of capacity annual an have will which 2012/13, during Fischamend in plant biomass new a on started also tion 001 2011/12 2010/11 h cmuiy f etc-arm o ol fcss on focuses only not Deutsch-Wagram of community The The Deutsch-Wagram wind park, a joint project by W.E.B. and EVN currently operates more than 60 biomass plants, which plants, biomass 60 than more operates currently EVN EVN is constantly working to reduce its greenhouse gas emis- emissions andtheresults thereof EN18 Initiativesforthereduction ofgreenhouse gas in 1,000t Quantity ofCO EVN thermalanddistrictheating(power)plants 1,736 ilo loe ui mte o wo cis ee tlsd in utilised were chips wood of metres cubic loose million

tonnes. Additionally, the opening of the new biomass plant 2 eachyear. 1,630 106 2 msin b ruhy ,0 tne. h largest The tonnes. 1,000 roughly by emissions chips to EVN’sto chips Over plants. heating district closest WSS, hc spl u t 30 ons of tonnes 300 to up supply which (WNSKS), 1,424 2 emissionsofthe 1,283 141 2012 — Environmental responsibilityEnvironmental— 1,465 2 Eape o tee rjcs are projects these of Examples . EVN Full Report 2012/13Report Full EVN /13 1,309 156

2 eachyear. Austria Bulgaria 2 per year. Construc- 2 emissions by emissions Kommunal 187 -

Corporate Social Responsibility Specific emissions of the EVN thermal and In the areas of district cooling supplies, EVN cut CO2 emissions district heating (power) plants1) by 630 tonnes with the opening of a cooling plant for the provin- in kg/MWh cial hospital in St. Pölten. 2010/11 2011/12 2012/13 The second stage of the Ashta hydropower plant in Albania, which is operated together with Verbund, entered the start-up 0.036 phase during 2012/13. The first stage has been in operation 0.041 since September 2012. Full operations with both stages will raise the total output of the hydropower plant to 53 MW. The Ashta CO 0.039 plant will generate 240 million kWh of electricity each year and

0.283 not only supply roughly 100,000 households with renewable

energy, but also save 79,000 tonnes of CO2 annually. 0.285

NOX 0.293 There follows a list of further initiatives to reduce greenhouse gas emissions: 0.059 – “Sonnenkraftwerk Zwentendorf“: EVN and the province of

0.065 Lower Austria launched a new public participation model in spring 2012 for the construction of another photovoltaic SO2 0.069 plant in Zwentendorf with 1,300 panels.

0.025 – The ground-breaking ceremony for the solar power plant in Schönkirchen, which will be built as a public participation 0.028 model, was held in July 2013. The high demand was reflected Dust 0.031 in the start of planning for Schönkirchen II, which will include a further 2,000 panels for investments. 1) Annual average of the Austrian plants – Construction of EVN’s largest photovoltaic park in Trastikovo,

Bulgaria – 2,000 tonnes of CO2 saved per year

– CO2 deposition facility at the Dürnrohr power plant – devel- Quantity of emissions of the EVN thermal oped, built and opened in cooperation with ANDRITZ Energy and district heating (power) plants1) & Environment and the Vienna University of Technology; this

in t pilot plant studies the separation of CO2 from the flue gas at 2010/11 the coal/natural gas plant in Dürnrohr. The goals of this pro- 2011/12 2012/13 ject are to reduce CO2 emissions, to research the separation

146 process in an industrial setting and to extract pure CO2 for future use as a valuable raw material. 147 – Biogas treatment plant in Wiener Neustadt: this plant produces

CO 143 bio-methane at a quality equivalent to natural gas. Approxi- mately 1.1 million m³ of biomethane are fed into the grid and 1,154 cover the heat consumption of more than 1,000 households. The facility saves up to 2,000 tonnes of CO per year. 1,023 2 – 31-km district heating transport line, which runs from NOX 1,065 Dürnrohr over the Perschling canal and Traisental to St. Pölten –

more than 40,000 tonnes of CO2 emissions are saved each year 241 – Line 3 of the Zwentendorf/Dürnrohr thermal waste utili- 233 sation plant: with the added capacity of Line 3, more than 500,000 tonnes of household and bulk waste as well as SO2 250 industrial and commercial waste can be treated ecologically

103 each year; this represents savings of 100,000 tonnes of coal and 10 million m³ of natural gas. 100 – 5-km district heating line from Burgenland to Lower Austria,

Dust 115 with an annual reduction of 7,000 tonnes of CO2 per year

188 EVN Full Report 2012/13 where there is a sewer junction and contains detailed provisionsdetailed contains and junction sewer a is therewhere effect takes contract wastewater.This household ordinary from differsstream wastewater a of quantity cover or type the where cases to ordinance discharge indirect the on based operators water intaketemperatures. the requirements of various public authorities concerning cooling harmful environmental effects are minimised by compliance with Possible institutions. streamsexternal accredited by tested wastewater regularly are EVN’s ordinances. emission wastewater numerous by regulated are water surface etc. into discharges Direct inspections, wastewater required contain, may it stances the concerning posal firmandthenutilised. dis- a transferredto productionis heat fromdistrict ash biomass been has and one-halfof Roughly 2009. November since 100% to utilised 2009 October to up landfills company-owned deposition). or utilisation material or (thermal law Austrian with accordance in waste the of dispose specialists These contracts. framework on based specialists disposal certified to transferred is Austria in reference measurements offuelexpenses. on based or measurement continuous by determined generally Hazardous waste Development ofwastequantities 1) Hazardous waste Export ofhazardous waste 3) 2) Non-hazardous waste

Oil containingPCBsfrom Macedoniato France ford EVN AG, EVN NetzGmbH,Bulgaria,Macedonia noconstructionresidueWith orpowerplant sideproducts

V cnldd cnrc wt swg tetet plant treatment sewage with contract a concluded EVN EN21 Total wastewaterdischarges Also seeEN16. EN16. Also seeindicator All fly ash and coarse ash is recycled. REALIT was stored in stored was REALIT recycled. is ash coarse and ash fly All occurring regularly waste non-hazardous and hazardous The EN22 Waste bytypeanddisposalmethod In accordance with legal requirements, the emission levels are EN20 NO X , SO allowable amount of wastewater, the main sub- wastewater,main of the amount allowable 2 andotherrelevant atmosphericemissions 2) 1) isposal

the Corporate Social Responsibility Social Corporate River. Norelevant damageresults from thispractice. meet current environmental standards are discharged into the Danube that flows wastewater the quality-monitored At plants, water. power surface any reaches it before plants treatment national borders in2012/13. was causedbywetwoodchipsandadefectiveprobe. age) was exceeded at a plant owned by EVN Wärme GmbH. This aver (daily monoxide carbon for threshold reportable a time period, same the During of. disposed and removed immediately was earth contaminated The automobile. an of tank oil the in leak a involved which GmbH, Niederösterreich Netz at 2012/13 1)

and Macedonia. registrationThe systemforenvironmentally relevant incidentscoversAustria,Bulgaria mjr at f h wseae i cend y wastewater by cleaned is wastewater the of part major A surface run-off EN25 Waters affected bywastewaterdischargesand No hazardous or non-hazardous waste was disposed of across EN24 Weight ofwastecategorisedasdangerous duringoccurred incident relevantenvironmentally minor One EN23 Environmentally relevant incidents in t/year Reutilisation ofpowerplantsideproducts 170,165 2010/11 112,400 10,621 47,144 t t t 2012/13 111,712 2011/12 3,6 3,2 127,522 139,123 137,663 9,266 34,374 68,667 0 8,671 — Environmental responsibilityEnvironmental— EVN Full Report 2012/13Report Full EVN 124,558 2012 011 2010/11 2011/12 /13 10,429 77,400 41,881 5,277 0 REALIT Coarse ash Flue ash 9,396 5 189 3) -

Corporate Social Responsibility Aspect: Products and services In 2012/13, the environmental costs of the analysed business EN26 Initiatives for the reduction of environmental areas amounted to EUR 94.0m. They include damage repair costs impact caused by products and services (e.g. for the restoration of contaminated sites) as well as damage The environmental impact of EVN’s products is related, above prevention costs (e.g. for environmental management and/or flue all, to air emissions due to the nature of its business activities. gas cleaning). On the charts, these expenditures are classified by Numerous measures have been implemented to prevent and environmental media and cost categories. The highest costs are minimise these emissions, among others through innovation, found in the area of emission treatment because of the exten- development and research. Plans call for an increase in the share sive amount of flue gas cleaning. Environment-related income of renewable energy sources to 50% over the long-term, and (scrap metal sales, waste-generated steam) totalled EUR 34.4m measures have also been introduced in the company and on in 2012/13. the customer side (through advising services) to increase energy efficiency. Environment-related costs and income Also see EVN‘s environmental policy statement on EURm 2012/13 2011/12 2010/11 page 34 and management’s approach to environmental Costs 94.0 92.6 88.3 responsibility on page 183. Income 34.4 32.9 26.2 Further information can also be found under indicators EN6 and EN18.

Aspect: Overall Environmental costs by cost categories EN30 Expenses and investments for environmental in % protection 0.5 0.8 0.4 Innovations, development The environmental cost calculation includes all fully consoli- 14.6 12.9 14.6 and research costs Preventive measures dated and relevant subsidiaries of the EVN Group in Austria with 22.0 20.7 21.1 and other environmental expected environment-related expenditures over EUR 10,000. management costs The collection of this data is based on the International Environ Intangible costs (not unambiguously mental Cost Accounting Guideline issued by the International 64.2 64.3 63.9 identifiable) Federation of Accountants. Environmental costs are defined as Waste and emissions treatment the monetised, internal costs of the impact of business activities on the environment and, in particular, the costs of damage prevention and repair.

2010/11 2011/12 2012/13

190 EVN Full Report 2012/13 cesbe ouet o te niomn and environment the on publically documents from accessible obtained be may routes pipeline for sites tive - alterna The year. reporting the during Austria Lower in plants compatibility tests. EVN held sites alternative measuring 67.75 ha for windpower locations EU13 Biodiversityofalternative Sector Supplements–Ecology in % Environmental costsbyenvironment media 001 2011/12 2010/11 68.0 10.6 8.0 3.6 4.1 5.3 0.4 74.0 7.8 3.8 3.0 2.5 0.3 8.6 2012 /13 73.0 8.7 4.9 3.2 2.2 0.3 7.8 Radiation 0% Radiation Air andclimate Waste products andlandscape Biodiversity Land andgroundwater Wastewater Noise andvibration Miscellaneous environmental Corporate Social Responsibility Social Corporate — Environmental responsibilityEnvironmental— EVN Full Report 2012/13Report Full EVN 191

Corporate Social Responsibility Social responsibility

EVN as a responsible employer with different working conditions. For this reason, it is committed to compliance with the principles of the International Labour The EVN Group had an average of 7,497 employees in Organization (ILO) and the UN Global Compact. EVN joined the 2012/13, or more than three-times as high as roughly ten years UN Global Compact in September 2005 and thereby confirmed ago. This growth is attributable chiefly to EVN’s expansion in its intention to act in accordance with the global principles of South Eastern Europe. These international activities in 21 coun- ethical business behaviour. This is closely connected to the chal- tries have significantly increased the cultural diversity in the EVN lenge of eliminating all discrimination on the basis of nationality Group. In order to equally present the EVN identity and keep or ethnic background, gender, culture, religion, age or state of the EVN brand promises toward stakeholders in all countries health. People with the same professional and personal qualifi- where EVN is active, key values were introduced: E(V)Nsure, cations are given equal treatment in hiring, further training and E(V)Ncourage, E(V)Nable. These key values help employees to fill career development, working conditions and salaries. EVN signed the EVN brand with life and represent an important element of a “charter on the new compatibility between parents and busi- all “culture” instruments used by the Group, e.g. the managerial ness” in May 2011. In addition, the Women@EVN programme mission statement and the feedback and orientation discussions. was developed and approved by the Executive Board in 2010 /11.

Details on EVN’s key values can be found on page 35. Corporate social partnership At EVN, major business decisions are made in a transparent Principles of human resources management manner in accordance with the managerial mission statement As a company that is committed to the equal treatment of and legal regulations. Employee representatives are integrated all stakeholder interests, EVN also places high value on meeting into the decision-making process and provided with information the diverse needs of its employees. Numerous measures are in as a matter of course. place to ensure that EVN not only meets its legal obligations as an employer, but also provides a range of voluntary benefits. In Occupational safety and accident prevention this way, EVN works to create a positive working environment Occupational safety and accident prevention have high prior- in which its employees can develop their skills and talents. The ity in all business units of the EVN. Training and increased aware- central values of the corporate culture and the treatment of ness ensure a high level of safety. In addition to legal regulations, employees are defined in corporate principles. EVN has issued a comprehensive internal safety set of rules with business directives and guidelines. The main section is a special Equal treatment and opportunity “Safety Handbook” tailored to working conditions in the energy The EVN Group operates in a growing number of countries industry that is available to all employees on the Intranet.

Other Diversity of employees 2012/13 Austria Bulgaria Macedonia countries Total Number of employees1) Number thereof women % 20.8 24.4 18.8 30.7 21.9 thereof men % 79.2 75.6 81.2 69.3 78.1

Type of employment 2) Worker % 7.3 0.0 0.0 29.0 4.1 Employee % 92.7 100.0 100.0 71.0 95.9

Contract type Part-time in total % 10.7 0.0 0.0 8.8 4.2 Part-time women % 8.5 0.0 0.0 7.3 3.4

Individuals with special needs % 1.8 1.5 1.1 1.5 1.5

1) On full-time equivalent basis (FTE); annual average 2) In Bulgaria and Macedonia, there is no distinction between employee and worker.

192 EVN Full Report 2012/13 – – – included: tiated by the human resources department in 2012/13 vacation timethrough flexitimeworkmodels. necessary the accumulate to employees helps also EVN situations. disaster in time invested the of half to up for work from excused are employees These commitment. this supports EVN Cross or local fire brigade during their free time. As an employer, EVN’s employees do volunteer work in organisations like the Red of number large A society. to contributions valuable make also information regular and employmentofpersonnel. exchange Group-wide the promote also measures further and tisements to support the preferred filling internal of posts. These adver job to applies Transparencyalso data. time personal and events training seminars, on information as well as resentatives rep- employee and supply energy company, the involving issues In addition, the EVN Intranet provides a broad overview of current – – – – – – – –

Children’s pr New conceptforideamanagement EVNcompanyday SMART ini- or continued initiatives and activities important most The Human resources activitiesandinitiatives but company, the for work only not employees EVN Many Employee commitmentforsocialcauses with employees provided has Intern“ “EVN magazine The employees Up-to-date andcomprehensive informationfor with theDanubeUniversityKrems) EVN SUNAcademy(forthefirsttimeincooperation Management programme in Bulgaria Employee surveyinMacedonia Management supportprogramme in Macedonia Introduction offeedbackand orientationdiscussions Group-wide know-howtransfer anddialogue EVN apprentice supportprogramme Trainee programme inMacedonia ogramme “Holidays@EVN“ on corporate developments for many years. many for developments corporate on

- others, theissuesofjobsecurity andcommunications. among include, improvement further for need a be to appears there where employees for importance particular of areas The concerns. employees’ address to 2013/14 in measures specific ofdevelopment the providefor will basis resultssurveys a the of The comments. open of form the in feedback individual include the fact that nearly one-third of the respondents took the time to in reflected also is communicate to willingness employees‘ The that they were satisfied or very satisfied with their employer, EVN. and the company. Over 80% of the survey participants indicated open feedback culture and the close ties between the employees tember 2013. The high participation rate of 85% is a sign of the Sep- in Macedonia EVN at survey such first the by followed was employee satisfaction in Bulgaria was conducted in and 2011/12, and suggestions for continuous improvement. The first survey on relevantfor data indicatorscollect are to surveys out ular carried environment and the related conditions is a central concern. Reg-

o EN te aifcin f mlye wt ter working their with employees of satisfaction the EVN, For Employee satisfaction also seeEC8onpage180. For informationon employeecommitmentforsocialcauses, decent employment. Managementapproach labourpractices and GRI indicator: Idea Management 100 ideasandsuggestions. over contributed and programme management idea new the in part took employees EVN’s of 2.4% approximately 2012/13 In technologies. and services products, new as image, corporate improvement, efficiency like areas in interest special of is employees of potential creative The mented. imple- are that suggestions and proposals for bonuses award and pursued be to ideas the select Experts 2013. March since – desired if anonymously also – ideas contribute their to platform a with employees provided has Intranet EVN The potential, management. idea its this revised has EVN utilise effectively to order In ideas. and EVN’s in cultures and nationalities origins, of diversity wide The Corporate Social Responsibility Social Corporate workforce offers a wealth of different viewpoints different of wealth a offers workforce quality and safety, employee safety, and quality

EVN Full Report 2012/13Report Full EVN — Social responsibility Social — satisfaction as well as satisfaction 193

Corporate Social Responsibility Diversity of the workforce tunity to attain skilled and/or managerial positions according As of 30 September 2013, 1,696 women (21.9%) and to their interests and abilities. EVN has implemented numerous 6,051 men (78.1%) were employed at EVN. The average number measures to improve the compatibility of work and family, includ- of apprentices was 46. The EVN AG and EVN Netz workforces ing the introduction of flexible work models such as part-time consist entirely of salaried employees. No differentiation is work or flexitime without core times, individual support after made between wage and salaried employees in Macedonia and parental leave, holiday child care (Holidays@EVN), information Bulgaria. The Group-wide share of wage employees therefore events for employees on parental leave and an extensive training equals 4.1%. programme that is also open to employees on parental leave. EVN is working to increase the share of women to a level that In line with EVN‘s international business model, its employ- mirrors the current educational levels of women of the applicable ees are viewed as a single entity comprising various national- professional groups. ities. Men and women from more than 20 countries work for EVN. Most of these employees come from Austria, Bulgaria and At EVN, women and men with a comparable function, qualifi Macedonia. cations and length of service with the company receive the same remuneration for the same work. Austrian law requires com- Employee turnover during the reporting year equalled 3.2%. panies with a workforce above a certain threshold to submit a This indicator does not include reductions based on Bulgarian biannual remuneration report (§ 11a of the Equal Opportunity and Macedonian social plans, transfers within the Group or Act). All companies in the EVN Group with a workforce above retirements and was not analysed in detail due to its low level. A the legally defined threshold prepared the required report and total of 126 women and 219 men joined EVN in 2012/13. submitted it to the applicable works council.

Total number of new employees broken down GRI indicator: Total staff according to type of employment, by age group and gender 2012/13 work contract and region (LA1) GRI indicator: Employee fluctuation (LA2) 156 GRI indicator: Diversity of employees and leading bodies 58 (LA13) Total: female: 126 GRI indicator: Differences in remuneration due to gender 101 male: 219 (LA14) 98 38

63 53 Corporate social partnership at EVN 25 The corporate social partnership at EVN is based on the 27 3 28 “convince rather than force” principle. Major business decisions 24 8 2 6 0 are made in a transparent manner in accordance with the man- up to 21 to 31 to 41 to 51 to more than agerial mission statement and legal regulations. Employee repre- 20 years 30 years 40 years 50 years 60 years 60 years sentatives are integrated into the decision-making process and provided with information as a matter of course. This approach The EVN Group uses personnel leasing for three reasons; first, applies to strategic decisions as well as to changes and adjust- as a preliminary step to a conventional employment relationship ments involving employees. Similar to EVN AG, the larger com- (integration leasing); second, for projects covering a limited panies in the EVN Group have also designated special employee time period; and third, to handle peak work periods. A total of representatives. 151 leased employees worked for the EVN Group as of 30 Sep- tember 2013. Employees‘ interests are represented in the form of works councils or trade unions. Over 90% of all EVN employees are Women comprised 21.9% of EVN’s workforce during the represented by such bodies and their remuneration is protected reporting year. The Women@EVN programme was launched in by collective bargaining agreements, tariffs or legal minimum 2010/11 to increase this ratio and to improve the opportuni- wage regulations. In Austria, Macedonia and Bulgaria, employee- ties and perspectives for women working for the EVN Group in -related issues are handled in workplace, health and safety com- Austria. It includes the development of a business environment mittees that also include representatives of the works councils with ideal working conditions in which women have the oppor- or unions.

194 EVN Full Report 2012/13 programme. needs of the various age groups in the development of its health the incorporates EVN hand, other the on experience; and how the future experts and thereby ensure the transfer of their know- support colleagues skilled hand, one the on measures: specific with meet to working is for EVN need which managers, a and create specialists will This years. ten next the in 20% nearly EVN’sof 7% and years five next retirethe will during employees model. working part-time a of favour in decided Service Business EVN 2012/13, In 47 programme. retirement partial a of context the within models working part-time introduced and years recent in employees senior for programmes training its expanded has increase in the legal retirement age. Against this backdrop, EVN is employees: Bulgaria. last the Ohrid, in 2013 September 18 to 16 from held form for communication and exchange. The last conference was fromplat- each a as serves and Macedonia and Bulgaria Austria, improve cross-border communications. This council has members to and subsidiaries European East South the integrate further to May 2012. in place took representatives youth of election last The 2008. in appointed were representatives youth first the since council works the in voice a had also have Apprentices Responsibility. Board and the Advisory Committee for Environmental and Social

rjce t rs frhr n h ftr de o h expected the to due future the in further rise to projected (EU15) andtenyears Retirements in thenextfive GRI indicator: EVN employees have an average age of 43.5 years. This Senior employees approximately age, retirement legal current the on Based EVN also places a special focus on the needs of the followingthe of needs the on focus special a places also EVN 2007 September in founded was council works European A Supervisory the on serve also council works the of Members mlye a EN ez mH EN G en asr and wasser evn AG, EVN GmbH, Netz EVN at employees presidium meeting on 17 and 18 June 2013 in Plovdiv,in 2013 June 18 and 17 on meeting presidium Macedonia, and Macedonia, figure

contribution to the employment of individuals a with made special needs. way, this in and, year reporting the during workshops sheltered with 660,000 EUR approximately of value total a of WärmeordersEVN placed and GmbH GmbH Netz EVN AG, EVN addition, In workforce. total the of 1.5% represent 2012/13, in EVN free. one of the 26 EVN customer centres in ifrequired.locations and Twentyhours working respectto with everyday business operations. Additional opportunities are into made available employees these of integration the facilitate to workplaces and processes (e.g. using sign-language interpreters) of design individual the to given is importance Particular force. work- its in needs special with people integrating on value high n epn wt is oi-oiia rsosblt, V places EVN responsibility, socio-political its with keeping In Individuals withspecialneeds Employment periodofemployees Age structure ofemployees 20 years 3 years up to 1,160 up to 80 Corporate Social Responsibility Social Corporate 748 412 74 6 mlyd 1 mn n wmn ih pca needs special with women and men 116 employed 30 years 10 years 21 to 1,573 853 4 to 242 1,178 611 395 40 years 20 years 1,895 31 to 2,255 11 to 1,450 1,782 445 473 EVN Full Report 2012/13Report Full EVN 50 years 30 years 2,710 21 to 41 to 1,872 Lower Austria are barrier- — Social responsibility Social — 2,155 555 1,577 295 40 years 60 years 31 to 2,099 51 to 809 688 121 1,659 male: 6,051 female: 1,696 Total: 440 mor 40 years mor 61 years 78 110 e than e than female male 102 195 78 0 8

Corporate Social Responsibility Young people EVN traditionally attaches great importance to apprentice Scholarships in Macedonia training. This not only reflects the Group’s focus on corporate responsibility, but also serves to meet the demand for skilled A scholarship programme was initiated by the University professionals. An information afternoon with an emphasis on of Skopje and EVN during the 2010/11 academic year. In practical demonstrations was held in October 2012 to give inter- the first year, four scholarships were awarded to students ested young people, above all girls, a glimpse into the workday in the electrical engineering and information technology of an electrical technician with a utility company. On 1 Septem- department at this university. The programme has since ber 2013, 16 apprentices started their training to become elec- been expanded to include the Technical University in trical technicians. The EVN Group had a total of 46 apprentices Bitola, where one additional scholarship is granted each in 2012/13. Additional classes and seminars at EVN complement year. EVN currently supports nine female and five male the dual programme of theoretical training at the vocational students. school and practical on-the-job training. EVN also supports dou- ble and multiple qualifications, e.g. apprentice training to qualify The students are selected from various technical fields as natural gas and heating technicians, as a means of improving on the basis of tests and interviews. The acceptance of interdisciplinary qualifications. the scholarship is connected with a number of requirements to ensure it is used appropriately. For example, The high quality of training is also reflected in the fact that the students are required to demonstrate good academic the majority of apprentices remain with the company after com- progress, to participate in seminar and project work on pleting their programmes. Of the 15 apprentices who started subjects relevant to EVN during their studies and to com- their training with EVN in 2007, eleven accepted permanent job plete a traineeship at EVN during the summer. The initial offers. Experienced colleagues support the young technicians goal is to create a bond between students in technical after their training is completed and thereby ensure the transfer fields and EVN, while also giving these young men and of their know-how and experience. women an opportunity to learn about EVN. The medium-term goal is the recruitment of qualified scholarship Every year EVN also gives more than 300 schoolchildren and recipients for promising jobs in the EVN Group. students an opportunity to put their theoretical knowledge to use and gain their first practical experience in exciting trainee- ships. These activities underscore EVN’s goal to give young men Integrity clause for partners and women opportunities at an early age and to awaken their The EVN integrity clause represents an integral part of the interest for professions in the energy and environmental sector. contracts for the employees of all business partners and subcontractors. It prohibits any form of discrimination or harassment In November 2012, this commitment to training young at the workplace. Working conditions are also addressed in the people brought EVN second place (first place in 2011) in the sections on “health protection”, “labour and employment regu- “Place to Perform“ competition, which evaluates the best train- lations”, and “transparency of working time and remuneration”. eeships among Austrian companies. EVN also has a strong commitment to cooperation with students and young professionals GRI indicator: Percentage of employees under collective in Bulgaria. In April 2012, EVN Bulgaria and the Technical Uni- agreements (LA4) versity Sofia signed a cooperation agreement to promote the GRI indicator: Notification deadlines for major changes practical skills of students as well as the exchange of experience within the company (LA5) in areas such as information technology and electrical engineer- GRI indicator: Percentage of employees in occupational ing. EVN Bulgaria also organised the “Youth with a future“ pro- safety committees (LA6) gramme for the eighth year in succession during 2012/13, which GRI indicator: Securing the requirement of skilled labour provides talented young people with an opportunity to develop (EU14) their interests and gain experience in one of the headquarters departments in Plovdiv during a three-month traineeship.

196 EVN Full Report 2012/13 workshop. drumming a and excursions activities, handicraft and games of programmediverse a enjoy wereto employees able drenEVN of chil- 60 Over initiative. Business” “Family the with together ised in the information centre of the Theiss power plant. It was organ- and areas green adjoining and headquarters corporate EVN the summer in repeated 2013. This programme, which was started in 2011, took place at was “Holidays@EVN“ programme tion attractive environment. an with children as well as parents provides and - more much and warmer bottle children’sa special toys, as furniture, well as workstations functional fully two with equipped is office child parent-and- The children. and work both on concentration for allows atmosphere comfortable A situations. childcare difficult of times in especially work, to children their bring to employees allows It 2012. in installed was that office parent-and-child the resignation afterparental leave). one year: (previous period reporting the during reasons family employment after this leave. One employee left the company for to return generally GmbH Business EVN and WasserGmbH EVN WärmeGmbH,EVN GmbH, Netz EVN at fathers and mothers all on parentalresulta As leave. models,designed individually these of were men six 2012/13, In models. available the are using Men also age. of months 36 is child the until guarantee work par to ments keep theirprofessional expertiseuptodate. ties and regular contacts with close the company facilitate view, re-entry and of point parents’ the From care. parental intensive of phase the beyond development professional and training investments in its utilise and staff qualified retain to able is EVN their personalneeds. meet to hours working their adapt thereby and period re-entry subsequent the during or leave parental full to alternative an as part-time work to choose also can Parents period. leave the out throughEVN with contacts - by facilitated is work to return Their leave. parental entitled legally of areadvantage taking considering who employees including balance, work-family a achieve For children from six to 12 years of age, the two-week vaca- two-week the age, of years 12 to six from children For is leave parental after re-entry facilitate to measure Another EVN also offers opportunities above and beyond legal entitle sides: both for advantages offer arrangements flexible These to efforts their in workforce its in parents the supports EVN Work-family balance Working andlivingwithEVN ental leave, allowing for time-out with a return-to- a with time-out for allowing leave, ental favourable conditions. A framework agreement with an is the opportunity to conclude supplementary health insurance at introduced forallfullandpart-timeemployees. was insurance pension voluntary where Bulgaria, in employees its for provided pensions the by illustrated also is employer an representatives.EVN’stheir throughprocess as responsibilitying decision-mak- the in share to right the employees gives which founded, was fund pension company separate A fund. pension external an to transferred not intentionally were benefits ment and employee contributions up to the date of retirement. Retire- employer the from derived is pension future the of amount which the in scheme, contribution defined a is fund pension EVN tant role in securing the retirement income of imporits employees. The an plays EVN way, this In company. the of support the with pension private a of form the in benefits retirement tional addi- accumulate to opportunity an employees gives fund This sion insurance (“ASVG” pension) through the EVN pension fund. ens socialtiesandshared valueswithinthecompany. strength- and communications improves activities shared these its focus on health promotion. At the same time, participation in tennis, hiking,photographyandfilmorculture andtourism. golf, bodywork, bodybuilding and cardio training, aviation, table surfing, sailing, fishing and tennis. Other popular activities include Pilates, chess, diving, scuba to sports water and winter ing, climb- curling, shooting, sport jogging, biking, mountain yoga, soccer,from ranges offering The tradition. long-standing a with or thescopeofemployment. tributing employers in the EVN Group – regardless of age, gender con- the of employees all to available are fund pension EVN the ipating employees. insurance pr

Another voluntary benefit provided by EVN for its employees its for EVN by provided benefit voluntary Another Supplementary healthinsurance pen- legal to supplement a with workforce its provides EVN EVN pensionfund EVN supports these activities, above all, in accordance with accordance in all, above activities, these supports EVN initiative employees’ an is club sports and culture EVN The EVN culture andsportsclub and insurance health supplementary like benefits Additional leave (LA15) Employeesreturning toworkafterparental GRI indicator: (LA13) bodies Diversityofemployeesandleading GRI indicator: Corporate Social Responsibility Social Corporate ovider guarantees optimal medical care for all partic-

EVN Full Report 2012/13Report Full EVN — Social responsibility Social — Austrian 197 -

Corporate Social Responsibility EVN’s culture and sports club had more than 1,500 mem- EVN’s education structure bers during the reporting year and includes 16 individual clubs 3.6% located in Krems, Horn, Waidhofen an der Thaya, Deutsch 25.9% Wagram, Hollabrunn, Mistelbach, St. Pölten, Waidhofen an der Ybbs, Wiener Neustadt, Korneuburg, Theiss, Dürnrohr and Maria Enzersdorf. All clubs have strong ties to their respective regions and generally operate autonomously.

In 2012/13, a total of EUR 14.0m was spent on employee benefits (pension contributions, other employee benefits), which represents 4.6% of personnel expenses. 16.2%

GRI indicator: Benefits for full-time employees only (LA3) 54.3% GRI indicator: Company defined benefit plan obligations (EC3) 25.9% University 16.2% Secondary school1) 54.3% Technical school graduates/employees with completed Human resources development apprenticeships or master craftsman certificates EVN is well aware of the importance of its highly qualified and 3.6% Others motivated employees for its business activities. Not only their 1) Includes higher graduation in Macedonia because of country-specific know-how, but also their motivation and their continuous read- educational structures, equivalent to secondary school graduation. iness to learn play an important role in the company’s sustainable success. Maintaining and increasing employees‘ high level of expertise therefore represent a focal point of human resources For further information on the measures and priorities activities. The EVN Academy was founded to organise the train- for training and further education, see ing and continuing education programmes in Austria, Bulgaria www.evn.at/hr-development/ and Macedonia. Each area of the company has designated education-and-training. employees to serve as training coordinators. They coordinate GRI indicator: Programmes for knowledge management qualification measures, assess the development needs of indi- and lifelong learning (LA11) vidual employees and submit their results to the EVN Academy teams.

198 EVN Full Report 2012/13 tnad ad ietvs, hc hs a 250 participants 2,500 had has which Directives”, and Standards – Communication “Customer seminar the on focused training Bulgaria, In skills. social strengthen to seminars and courses ist these programmes amounted to31.3hoursperemployee. in continuous training and education. The average time spent on EUR 1) Expenses Training andfurther education Average training expensesperemployee Training hoursperemployee

Seminar cost,trainers, e-learning EVN’s gas-fired powerplants Opportunities foremployeesof h ofrn cnetae o lnug tann, special- training, language on concentrated offering The (2011/12: 2.4m EUR of total a invested EVN 2012/13, In Continuous trainingandeducation situation. alternative an in knowledge new of application the with combined Group EVN the in expertise and know-how ble valua- of retention the for allow will This Group. EVN the within perspectives new women and men these give to implemented been have opportunities and development new retraining education, continuing include that ures Meas- workforce. its to markets energy changing the of EVN considers it a responsibility not to pass on the However,effects measures. these by affected were employees EVN 200 Roughly employees. trained highly among loads capacity.plant of utilisation partial the for These allow only will periods winter three further a for capacity Agency in Germany in 2012/13 for the provision of reserve Network Federal the with contract a of signing The tion. time utilisa- capacity in present reductions substantial in the resulted and at uneconomical plants power fired gas- natural of operation the made have prices electricity and costs energy primary between margins negative ing result- The markets. commodity the on prices electricity in decline a triggered turn, in which, supply excess to led feed-in from electricity high of The volumes period. reporting the during lenges EVN sented pre- markets energy European the on disturbances The reductions 2.7m), or EUR 325.5 (2011/12: EUR 359.0) per employee, per 359.0) EUR (2011/12: 325.5 EUR or 2.7m), 1) ee aual rfetd n elnn work- declining in reflected naturally were with a number of economic and social chal- social and economic of number a with eeal eeg sources energy renewable capacity

and leadershipdevelopment. management talent 196), page (see training apprentice of areas the in others among managers, and labour skilled for demands

well asbehaviouraltraining. as working“ “energised and languages management, project IT,coveredoffering the Macedonia, In employees. Bulgarian the for training optimise further will which 2011/12, during Stara Zagora of city Bulgarian the in opened also was centre training since the EVN Academy in Bulgaria was founded in 2006. A new

leadership and expert tasks over the medium-term as well as well as medium-term the over tasks expert and leadership grammes are designed to prepare selected employees to assume V hs mlmne vros esrs o et h future the meet to measures various implemented has EVN Securing skilledlabourrequir Educationandfurthertraining (LA10) GRI indicator: agers were alsoavailabletodiscussinteresting issues. man- EVN studies. case practical numerous by supplemented were presentations theoretical The indicators. performance key and management corporate management, cross-cultural management, innovation management, operations as such subjects on lecturers international included Krems, University tember 2013 and organised for the first time with the Danube Sep- 27 to 22 from held was which University, Summer The programme. six-day this in part took Germany und Croatia Bulgaria, Macedonia, Austria, from employees male 13 and employees female eight 2012/13, In SUN“. “EVN University, Summer EVN the is goal this reach to implemented gramme pro- One employees. of development personal the support staff is supported by training to expand the qualifications and edrhp development: Leadership Talent management: that covered subjects like leading and developing others, talent managers 65 for course training management two-day a held through others, among level, university the at training supports also EVN positions. agement was specially designed, individual management training programme to EVN Academies in Austria, Bulgaria and Macedonia. These pro the at education further and training of point focal important EURm make EUR hrs. nrdcd o epoes h ae eintd o man for designated are who employees for introduced Corporate Social Responsibility Social Corporate s o itra cre opruiis I 21/2 a 2011/12, In opportunities. career internal of use 2012/13 325.5 31.3 2.4 The recruitmentinternal of managerial edrhp eeomn i an is development Leadership MBA EVN Full Report 2012/13Report Full EVN 011 2010/11 2011/12 ements programmes. EVN Bulgaria EVN programmes. 359.0 — Social responsibility Social — 26.9 2.7 313.7 22.1 2.6 199 - -

Corporate Social Responsibility management and performance management systems. An elec- Healthcare and occupational safety tronic training platform was also introduced at the beginning EVN places great importance on the best possible training and of 2013, which has already been used by 1,251 employees for continuing education for employees on all relevant health and training in areas like Excel, project management and annual safety issues. An occupational safety department was established performance appraisals. to ensure compliance with legal regulations and the extensive set of internal directives and guidelines. Representatives of the GRI indicator: Securing the requirements for skilled labour works councils and trade unions are involved in the respective (EU14) workplace, health and safety issues. The “Health@EVN” was also expanded in 2012/13 to intensify and strengthen health initia- EVN introduced itself as an attractive employer at apprentice- tives. The programme’s three goals – health protection, healthier ship events and career fairs and in joint appearances with uni- living and fitness – are supported by numerous measures that versities and universities of applied sciences. In 2012/13, EVN include medical check-ups, vaccinations, eye and hearing tests, participated in the career fair of the Vienna University of Technol- psychological counselling, coaching, tips on healthy nutrition ogy, Career Calling, YPD Challenge, High-Potential Day in Vienna and special offerings for groups of employees who are exposed as well as career fairs in Bulgaria (e.g. “National career days“ in to particular risks. Plovdiv) and in Macedonia (e.g. BEST, Careed Days, SEEU). EVN is also represented on information platforms like kununu and The occupational medical care provided by EVN goes far Facebook. beyond legal requirements and is well received by employees. At EVN AG and EVN Netz GmbH (renamed Netz Niederösterreich Additional information on kununu can be found under: GmbH as of 1 October 2013) in Lower Austria, 1,087 vaccina- www.kununu.com. tions were given and 56 employees underwent medical check- ups in 2012/13.

EVN Bulgaria in the EVN does not operate in countries where there is an increased go-international programme risk of contagious diseases. Nevertheless, Group guidelines are in place in the event of serious events such as a pandemic. The In cooperation with the Austrian Federal Economic Group guideline “EVN Pandemic Prevention” is in force at all Chamber and its export promotion initiative “go-inter- Group subsidiaries. The goal of the company-wide pandemic pre- national“, EVN Bulgaria introduced the “Go International vention guideline (especially influenza pandemics) is to minimise Programme“. Six training subjects were handled in the infection risk at the workplace to ensure that business activi- 35 training days, with 415 employees in attendance. The ties are not affected and EVN’s customer service is uninterrupted. subject included time management, conflict management This guideline covers organisational, preventative and hygienic and effective teamwork as well as telephone and written measures aimed at minimising the risk of an influenza pandemic communications. among the workforce. In the event of a pandemic, the Group’s crisis management will define concrete implementation measures for each organisational unit in accordance with the crisis Feedback and orientation discussions management guideline. EVN implemented annual feedback and orientation discussions in all major Austrian subsidiaries during February 2010. The extensive range of training programmes on health pro- Employee talks are also held on a regular basis in Bulgaria, and tection, occupational health and safety and fire prevention was since January 2012 in Macedonia as well. These instruments continued during the reporting year. The courses covered safety allow for an appraisal by the employee’s supervisor and struc- issues such as “working with voltage” and “working with power tured feedback on work performance and quality. Additionally, saws”. Special courses were also offered, for example, on the development goals and measures are defined. More than 90% use of anti-fall protection equipment and first aid. In Austria, all of all employees are covered by these discussions and therefore employees are represented by safety officers in working commit- receive regular feedback on their performance and development tees that monitor and discuss the workplace safety programmes. plans. GRI indicator: Prevention of and education in GRI indicator: Performance evaluation and development serious diseases (LA8) plans for employees (LA12)

200 EVN Full Report 2012/13 Damage 1) Number Fire statistics during countries other and Austria in EVN for worked suppliers and transmission networks. More than 5,000 subcontractors and plants power new of construction the for and repairs and nance used for tasks with a limited period of time, especially for mainte- tion coordinators or supervisors. Subcontractors and suppliers are well-trained EVN employees who serve, for example, as construc- experienced, by reviewed is companies partner for directives with the Compliance personnel. trained employ to required tually contrac- are who partners selected with works only EVN safety, responsibility ofEVNMacedonia. of scope the within both period, reporting the during accidents ing dayslostincreased by52.3%to3,346.There were twofatal work- of number the addition, In 2012/13. in 121 to 40.7% by statistical analysisandthedevelopmentofprevention measures. for accidents all on figures and facts collect will database This phase. trial a of completion the after reasons technical for year was 2011/12 postponed from the reporting year to the following 3) 1) Number ofoccupationalaccidents Accident andlostdaysstatistics 2) Number ofstaffsickdays LTIF

Austria Lost Time InjuryFr Lost Time Lost daysare workingdaysonly;exclud commutingaccidents) occupational accidents(excluding Number ofminoraccidentsandnotifiable

n re t mnms te ik ascae wt workplace with associated risks the minimise to order In Occupational safetyforsubcontractorsandsuppliers absence andfatalitiesaccord lostdays, Injuries,occupationaldiseases, GRI indicator: GroupEVN the in accidents occupational roseof number The implementation The Healthandsafetyregulations (EU16) GRI indicator: trade unions(L Occupationalsafetyagreements with GRI indicator: 3) 1) equency Index–Frequency workinghours ofoccupationalaccidentsperonemillion A9) 2) f h acdn dtbs dsge in designed database accident the of 1) ing weekendsresultingcommutingaccidents) from work-related accidents(excluding ing toregion (LA7)

employees in accordance with § with accordance in employees their instruct must companies All properuse. its for training and protection, lighting, ventilation, suitable personal protective gear fire appropriate facilities, sanitary and water drinking to access protectionsafety freeand workplace, health the occupational at place“, this clause requires compliance with legal regulations for Work- the at Safety & “Health 4, item Under basis. contract a working for EVN in Austria must accept EVN‘s integrity clause as companies All areas. these in working companies qualified 300 roughly are There contracts. general under companies qualified pre- by performed are construction) building and engineering because this would not have any significance for labour practices. number of workdays attributable to subcontractors and suppliers reportingyear.the recordscentral themaintain on not does EVN tions are inforcesubsidiaries. withEVN‘sinternational regulaComparable - work. contracted the undertake to fications requiredthe have they certificationsquali- that and confirm also certificates must be provided automatically. Subcontractors must BauV). The same rules also apply to their subcontractors. Training h Construction the Safety and

(EU18) participated inhealthandsafetytraining pr Subcontractors andsupplierswhohave GRI indicator: for construction,servicingandmaintenance(EU17) Work daysofsubcontractors andsuppliers GRI indicator: Healthandsafetyregulations (EU16) GRI indicator: External services relevant for safety and/or health (e.g. in civilin (e.g. health relevantservices and/or safety for External TEUR Corporate Social Responsibility Social Corporate c (Abiscuzeez, Sh) n § and ASchG) (“Arbeitsschutzgesetz”, Act 2012/13 2012/13 okr aey euain (“Bauverordnung”, Regulation Safety Worker 3,346 15.5 10.1 121 3

EVN Full Report 2012/13Report Full EVN 011 2010/11 2011/12 14 of the Occupational Health Occupational the of 14 011 2010/11 2011/12 311.5 2,197 — Social responsibility Social — 6.9 86 6 ogrammes

3,149 5 of 154

62.0 113 8.2 201 4

Corporate Social Responsibility Human rights GRI indicator: Investment agreements with human rights clauses (HR1) EVN is committed to the unrestricted protection of human For more information on the EVN Code of Conduct, rights in all areas of its activities. High priority is given to the see www.responsibility.evn.at. inclusion of human rights clauses in contracts relating to invest- For the integrity clause, ments and procurement practices as well as equal treatment, go to www.evn.at/integrity-clause. freedom of assembly, right of collective negotiation, abolishment of child labour, abolishment of forced labour, complaint procedures, safety measures and the rights of indigenous peoples. In EVN supports the 2005, EVN joined the UN Global Compact and thereby agreed to UN Global Compact compliance with human rights principles at all its locations. EVN is particularly opposed to any form of child or forced labour and Principle 1: EVN supports and respects the protection expects the same from its contract partners and suppliers. of internationally proclaimed human rights. Principle 2: EVN makes sure that it is not complicit in These principles are specified in the EVN Code of Conduct human rights abuses. and are binding for all employees in all business units. Imple- Principle 3: EVN upholds the freedom of association mentation in all EVN companies is ensured by the availability of and the effective recognition of the right the code in German and English as well as its translation into the to collective bargaining. languages of the subsidiaries in Bulgaria, Macedonia and Russia. Principle 4: EVN supports the elimination of all forms of The EVN Code of Conduct is regularly adapted to reflect current forced and compulsory labour. developments and changes in legal requirements. Principle 5: EVN supports the effective abolition of child labour. The EVN integrity clause requires all suppliers and subcontrac- Principle 6: EVN supports the elimination of tors to comply with these rules. It can be accessed by investors, discrimination in respect of employment investment and joint venture partners, subcontractors and stake- and occupation. holders on EVN’s website and is also sent out with each order Principle 7: EVN supports a precautionary approach and tender as part of the contract. Suppliers are controlled and to environmental challenges. monitored for compliance of EVN’s integrity clause based on a Principle 8: EVN undertakes many national and specially developed questionnaire. The audits carried out since international initiatives to promote greater the implementation of this questionnaire did not identify any environmental responsibility. violations. Principle 9: EVN encourages the development and diffusion of environmentally friendly Compliance with human rights principles is the responsibility technologies. of the Executive Board, which is supported by the EVN compli- Principle 10: EVN works against corruption in all its forms. ance officer.

EVN, as an international company, also operates in countries Aspect: Investment and procurement practices with a less developed understanding for human rights or may HR2 Supplier controls for compliance with human rights purchase services, materials or products from such countries legislation through central procurement. In connection with the sensitive For specific product groups such as textiles or materials such area of textile procurement (work clothes), risk countries have as steel, major suppliers and subcontractors, especially from already been excluded through an internal guideline. This type non-EU countries, are evaluated in accordance with human of exclusion practice is being expanded to include other product rights and sustainability principles. This evaluation takes place on groups or specific criteria and measures are under implementa- a sampling basis. The majority of all deliveries to EVN originate tion to improve the current situation or to implement the EVN in the EU. Suppliers that are not based in the EU are audited on integrity clause. One example involved coal procurement in site by EVN. Contractors, especially construction companies, are Poland and Russia, where purchases are only made after EVN audited with regard to their payment of social insurance con- has conducted its own research and verified compliance with tributions for their employees. This review covers all Austrian human and labour rights and examined the working and living contractors performing construction services with a volume above conditions.

202 EVN Full Report 2012/13 all orders and contracts by and with EVN. EVN and its subsidi its and EVN EVN. with and by contracts and orders all an integral part of the EVN integrity clause, which is the basis for formsalso right This locations. all at corenorms ILO work the as well as Rights Human of Declaration Universal the imple- of mentation the for cornerstone a represents negotiation collective statutes. personnel and guidelines compliance EVN‘s under sanctioned and condemned be would discrimination Any employer. sible respon- a as EVN’spositioning for factor central a is treatment coreequalILO norms, the work and guidelines social legislation, social national treaties, international of elements key the of one religion or political orientation were reported As during 2012/13. colour,orientation, gender,skin sexual origin, social or national rights, especially therightsmentionedabove. outside the subsidiaries EU EVN’sthat might be for considered a location risk country for business human only the is Russia that concluded It risk. at be could rights human these whereregions EVN‘s facilitiesintheEU. atrights employee and human other and these with compliance Europeanmonitora to of council founding works the supported andgroup companies Austrian its in council works a established also has EVN law. by guaranteed are rights these countries, EU other all and Austria In negotiation. collective and assembly of fr the endanger could that activities business any conduct not do aries of hours 2.5 training peremployee. involves activities, company to relevant aspects rights human the as well as corruption of prevention the covers contributions. insurance social make to obligations his meet to failed has that contractor single a identified not has EVN Todate, 5,000. EUR

For EVN and its subsidiaries, the right of free assembly and assembly free of right the subsidiaries, its and EVN For HR5 Rightoffree assemblyandcollectivenegotiation Aspect: Freedom ofassemblyandcollectivenegotiation ethnic, of grounds the on discrimination of incidents No countermeasures taken HR4 Occurrences ofdiscriminationand Aspect: Equaltreatment on page175. An analysis was conducted of the countries or geographical or countries the of conducted was analysis An Also seeCorporate governanceandmanagementstructure h tann porme n h Cd o Cnut which Conduct, of Code the on programme training The human rightsaspects HR3 Numberofhourstrainingoncompany-relevant ee exercise of employee rights, in particular the freedom the particular in rights, employee of exercise ee

therefore beruledoutorare strictlysanctioned. can Violations rights. human with deals also which Conduct, of Code EVN the in trained been have employees security All ities. facil- Russian the of each in contract) (under employed is person security One Russia. of exception the with staff, security the by mented inthatcountrytoreduce theriskofforced labour. labour, withtheexceptionofRussia.Measures havebeenimple- not operateincountrieswithahighriskofchildlabour. does EVN EU. the in manufactured were that textiles purchase only to requirement the is measure Another detail. in examined tions with a high potential for the involvement of child labour are transac- procurement addition, In EVN. with contract every for basis the forms which clause, integrity the of introduction the of number wasstep major zero.One near zero or to risk this lower to steps a taken has department procurement The risk. at being as listed fromcountries materials products curementor of project.risks priortothestartofeachinternational relevant the evaluates EVN rights, employee and human protect to measure precautionary further a As Russia. in subsidiaries its and EVN of activities business the by endangered not are rights Code of Conduct. Assessments and feedback indicate that these This took place within the context of internal training on the EVN above. mentioned those especially rights, employee and human withcomply to need wereawarethe facilities made of and aries subsidi- Russian the of management the that ensured also department The field. this in and education further countries own its risk intensified in compliance rights human into research

V de nt prt i cutis ih rs o violations of risk a with countries in operate not does EVN human rights HR8 T Aspect: Securitymethods Also seeHR6. EVN does not operate in countries with a high risk of forced of risk high a with countries in operate not does EVN HR7 Businessactivitieswiththeriskofforced labour Aspect: Forced labour EVN‘s only risk of association with child labour lies in the pro- HR6 Businessactivitieswithariskofchildlabour Aspect: Childlabour extensive conducted therefore department legal EVN’s Corporate Social Responsibility Social Corporate raining forsecuritypersonnelontheissueof EVN Full Report 2012/13Report Full EVN — Social responsibility Social — 203

Corporate Social Responsibility Aspect: Assessment SO9 Business activities with significant negative impact HR10 Number of checks concerning the compliance with on local communities human rights and/or impact assessments The main principles underlying EVN’s business activities are to EVN places top priority on compliance with human rights in the ensure the security of energy supplies, to use natural resources in areas of investment and procurement practices, equal treatment, a responsible manner, to create modern infrastructure and to con- freedom of assembly, right of collective negotiation, abolishment sistently position EVN as a provider of top quality services. All infra- of child labour, abolishment of forced labour, complaints proce- structure projects – from (small-scale) hydropower plants, pipeline dure, safety measures and the rights of indigenous people. These projects and wind parks to biomass and waste utilisation plants – principles are specified in the EVN Code of Conduct and apply to have an impact on the environment and the regional population. all employees in all business units. A procurement integrity clause requires all suppliers and subcontractors to comply with these rules. Despite the high public support for windpower and hydro- Sampling procedures are used to control the human rights perfor- power, it is impossible to completely rule out conflicts of interests mance of suppliers in their business relations with the EVN Group. with residents and environmentalists on specific projects. Accord- ingly, these potential conflicts must be identified and addressed Also see HR2. as early as possible. EVN relies on professional communications with municipalities, residents, citizens’ groups and NGOs for all its ventures and views constructive discussions with all stakeholders as the foundation for the successful realisation of windpower Society and hydropower projects.

As a responsible energy and environmental services provider, SO10 Prevention and mitigation measures for business EVN has been committed to social responsibility, sustainable activities with negative impact on local communities business practices and the protection of the environment and The planning and realisation of all infrastructure projects resources for many years. Achieving a balance between eco- from (small-scale) hydropower plants, pipeline projects and wind nomic, ecological and social aspects is an important focus of its parks to biomass and waste utilisation plants includes the active business activities. These activities are accompanied by a shared and timely inclusion of residents, citizen’s groups, NGOs, polit- responsibility for the social development of the Group’s markets ical representatives, local initiatives and associations. EVN sees and have an influence on local stakeholders through numerous these stakeholders as valuable planning partners who provide economic connections. information on the best possible resource-conserving realisation. Other important aspects are the cooperation with leading envi- EVN follows a clear management approach for all social ronmental and animal protection experts and use of state-of-the- aspects of its business involving governance, compliance, corpo- art technology. EVN views the requirements of public authorities rate ethics, the prevention of corruption, public appearance and as minimum standards and gives top priority to measures that competitive behaviour. This management approach is defined in improve information, protection and prevention. the EVN Code of Conduct (www.evn.at/Code-of-conduct). Every windpower project is subject to a strict approval proce- Aspect: Local communities dure. In this context, a differentiation is made between individual SO1 Effects of business activities on society assessments and concentrated environmental compatibility tests. EVN safely and reliably supplies 3.7 million customers with The competent authority decides whether a project requires a energy. Its core business includes providing reliable coverage for concentrated environmental compatibility test based, among the daily needs of its customers and making a major contribution others, on the size of the planned wind park, existing turbines to their quality of life. The responsibility for future generations is in the area and relevant conservation areas. Both the individual of particular importance and is reflected in a circumspect man- and the consolidated procedures include the assessment of all agement policy. This approach applies equally to individuals and relevant factors such as noise, shadow, ornithology, the envi- social cohesion and to the regional economy, the environment ronment and the landscape appearance. The legal provisions in and the use of natural resources. Lower Austria, e.g. a mandatory minimum distance of 1.2 km to the next zoned residential area, are among the strictest rules in Also see EN18 and EU19. Europe.

Also see SO9.

204 EVN Full Report 2012/13 of theAustrian electricity industry. belongs is “Oesterreichs Energie”, which represents the interests working EVN which to organisations and important most the of One groups. committees their and associations professional and business in memberships its of context the within efficiency directly andwithoutdelay. officer compliance EVN’s contact to advised are work their of course the during loyalty or interest of conflicts into come ally unintention- who employees Therefore, damage. the of scope the and case the of severity the on depending law, civil and/or labour under prosecution in result would suspicions confirmed Any law. criminal under consequences to lead may and bilities responsi- employees’ the of breach a represent violations and conditions. local and business reflect to adapted be will and Group the out the basis for the information and training of employees through- form will It system. management compliance comprehensive a implement to project a of part as prepared was manual pliance for the introduction of whistle-blowing procedures. A draft com- also started in the most important foreign markets in preparation were assessments protection Data intranet. the via basis ymous anon- an on information submit to Austria in employees allows that option an include to 2012/13 in expanded was procedure whistle-blowing the consulting, legal additional After 2010/11. in completed were programme training related the and dures proce- Whistle-blowing policies. anti-corruption and Conduct circumstances thatcouldleadtoorberelated tocorruption. of review a includes also department audit internal the by work The Conduct. of Code EVN the on based companies Group all for issued been have instructions appropriate and system, ment

EVN expresses its opinions on climate protection and energy and protection climate on opinions its expresses EVN sensus buildingprocess, lobbying SO5 Politicalpositions,participationinthepoliticalcon- Aspect: Publicpolicy under governance,obligationsandcommitment. Details onthecompliancemanagementsystempage175 No corruption issues were reported in Infringements 2012/13. SO4 Measures takeninresponse tocorruptionissues page 175. Also seeGovernance,commitmentandengagementfrom l nw mlye rcie riig n h EN oe of Code EVN the on training receive employees new All SO3 Employeeanti-corruptiontraining Corruption is classified as a risk factor in EVN’s risk manage- EVN’srisk in factor risk a as classified is Corruption SO2 Examinationofcorruptionrisks Aspect: Corruption

a settlement. with ended proceeding This conditions. weather unusual under competitor’sthe of security ply endangeredbe would customers make a contribution to supply security and also suggest the sup- not did competitor the imply that derogatorystatements and/or KG by a competitor who alleged the dissemination of misleading before theCommissionforProtection ofCompetition. pending are proceedings These masts. of provision the as well the determination of prices and conditions for network access as on based acts unlawful possible evaluate to EP EVN against ing dation of the European Union. Legal proceedings are also on-go- TreatyFoun- the the of on 102 and 101 Art. and Act Protection of a monopoly or controlling market position) of the Competitive (misuse 21 Art. and practices) concerted and resolutions ments, to evaluate the possible infringement of Art. 15 (unlawful agree- as the change of suppliers. Legal proceedings are also in progress obstruction of the registration process on the free market as well the and support insufficient on based regulations legal of ment infringe- possible the evaluate to BG EVN and SEE EVN EC, EVN purchases. exchange stock through 100% to subsequently and 97.75% to EAD) (now ElectrorazpredelenieAD EVN in holding its increased AGprocess, EVN privatization the with connection In appeal. an filed has and Exchange) Stock Sofia the of website the on lished plied in full with the guidelines for the privatisation process (pub- com- it believes EVN authorities. market financial Bulgarian the by rules applicable the with non-compliant as declared was AD the one-third stake held by the state in EVN Electrorazpredelenie for process privatisation 2011 December the with connection in SO7 Lawsuitsinconsequenceofanti-competition Aspect: Anti-competitivepractice The structur practice, cartelormonopolyformation A lawsuit was filed against EVN Energievertrieb GmbH & Co & GmbH Energievertrieb EVN against filed was lawsuit A EP,EVN against initiated were proceedings legal Bulgaria, In Corporate Social Responsibility Social Corporate e of the purchase contracts submitted by EVN AG EVN Full Report 2012/13Report Full EVN — Social responsibility Social — 205

Corporate Social Responsibility Sector supplements – Society Clear principles of evn naturkraft EU19 Inclusion of stakeholders in decision-making in the field of wind energy – processes fair policy EVN is well aware of the impact of its business activities on society, in Austria and in other countries. Compliance with all Fairness for the public: Priority for community sites. relevant international agreements and national legislation, above Fair practice: No planning without community consent. and beyond legal requirements, is a matter of course. The mayors are the first discussion partners before contacts are made with property owners. A special focus is placed on the preparation of environ Fair play: Communities and property owners are never mental and social impact assessments for new major projects. played off against each other. EVN supports the early, comprehensive and open inclusion of Fair information: evn naturkraft plans and operates stakeholders in decision-making processes. From small-scale windpower plants with people and not against them. hydropower plants, pipeline projects and wind parks to waste For that reason, the company provides early, honest and utilisation plants – all these projects are planned and realised comprehensive information – at evening meetings and with the active participation of neighbouring residents, citizens’ conversations with local groups and stakeholders and in groups, NGOs, political representatives, local initiatives and asso- roundtable discussions. ciations in planning and realisation. EVN views these stakehold- Fairness for residents: Windpower plants that create a ers as valuable planning partners. Early inclusion creates the basis minimum of disturbance through close cooperation with for broad acceptance, provides valuable information on the best residents and state-of-the-art technology. possible resource-conserving realisation and is a decisive factor Fairness for flora and fauna: Minimum disturbance for ani- for planning security (“licence to operate“). mals and plants through close cooperation with leading environmental and animal protection experts. Also see page 37 stakeholder management.

EU20 Involuntary relocations EU22 Relocations during the reporting year EVN is strictly opposed to any forced relocation and physi- Product responsibility cal or economic expulsion and complies with all relevant international guidelines and national legislation. Environmental and PR4 Violation of information obligations social impact assessments that address these issues are carried In a ruling dated 11 January 2013, the Austrian Financial out prior to the start of new projects. There were no relocations Market Authority declared the public announcement of a res- during the reporting year. olution of the Annual General Meeting on 19 January 2012 to be insufficient. This resolution, which was published on the EU21 Crises, emergency and contingency plans and company’s website, authorised the Executive Board to purchase relevant training programmes treasury shares during a period of 30 months. The members of EVN has prepared comprehensive crisis, emergency and con- the Executive Board were subsequently fined (minimum penalty) tingency plans and implemented training programmes for major for an administrative violation pursuant to § 82 (8) and 9 of the segments of its business activities, especially for risk scenarios Austrian Stock Corporation Act. that may affect the population. Internal and external training programmes on crisis management are held in Lower Austria, PR9 Fines due to violations of product and service and crisis scenarios are simulated at all EVN locations. Regular regulations training is provided for the emergency staff, and annual training In a ruling on 7 October 2013, EVN EP was fined BGN programmes are held for all duty personnel and annual secu- 20,000 by the Bulgarian energy regulatory authority DKEWR for rity training programmes for all employees. A crisis management the exchange of a meter without the verifiable consent of the system has also been implemented in Bulgaria and Macedonia. customer and a witness.

206 EVN Full Report 2012/13 period oftime. longer a over made not is arrears of payment if supply power the disconnect to forced is EVN approach, considerate socially a Despite deliveries. invoice for assurance quality cus- on and informing tomers and educating on focused which satisfaction, incustomer increase and measuresrate collection the improve of to number 2012/13, a introduced Macedonia EVN 70%. only reached Bulgaria in rate collection the area, heating the In Macedonia. in 92% to and Bulgaria in 99% to raised was rate collection the 2012/13 In Macedonia. and Bulgaria in especially payments, scheduled meet to inability frequent the and habits payment fluctuating by characterised still however,were, years for customers who are unable to pay their bills on time. The past electricity supplier. suffered bur person one Bulgaria, In injuries. his of result a as died later and pipe concrete-filling a cleaning while fell person One work. tion installa- during mast falling a from contusions suffered person one and electrisation, to subject were persons Three cables. on working while marks electric received fitter electrical an Austria, InGroup. the by employed not persons external involving three) EVN offers individual support and instalment payment options EU27 Electricitydisconnectionsduetopaymentarrears Full coverage can be assumed in all countries where EVN is the EU26 Populationinsalesarea withoutelectricitysupply year: (previous 2012/13 in incidents seven reported EVN (customers, neighbours,generalpublic) EU25 Injuriesandfatalitiesofindividuals product responsibility Sector supplements– ns whenheentered alivetransformerstation.

Corporate Social Responsibility Social Corporate EVN Full Report 2012/13Report Full EVN — Social responsibility Social — 207

Corporate Social Responsibility CSR programme

In 2012/13, discussions on CSR goals led to the identification of specific area focal points based on the EVN materiality matrix and to the subsequent definition of Group-wide CSR targets. These targets are classified by area of activity in the following CSR programme and highlighted in grey. The programme of CSR measures was developed in an iterative process according to the individual areas of activity. In collaboration with all departments, it is expanded regularly to include new measures in all areas of the EVN Group.

For the EVN materiality matrix, see page 33 of this report. The programme of CSR measures can also be found under www.responsibility.evn.at.

CSR measures by area of activity

Department Milestone Status as of target Measures Deadline 30 September 2013

Area of activity: Supply security

Sustainable, economical expansion of supply infrastructure Status: Preparation of a joint issue/criteria catalogue

EVN defined the following department targets and implemented the following measures to meet these corporate goals:

Realisation of power plant projects in Austria and other countries. Capacity expansion will focus primarily on renewable energies, including windpower and hydropower plants Increase Group coverage ratio to in Austria and large hydropower projects in 30% of electricity sales other countries On-going On-going measure

Arrange for the accreditation of evn wasser as a certified ÖVGW Accreditation of evn wasser as a certified water supplier during the next ÖVGW water supplier during the next two End of two years years 2013/14 Planned

Step-by-step refitting of boilers EVN waste: increase plant with corrosion-resistant materials availability (cladding) By 2015 Measure in implementation

Create a shared awareness among all involved employees for the sustainable and economical realisation of network infrastructure projects; retain current expertise Preparation of a subject/criteria catalogue and make this know-how available for the sustainable and economical planning Measure in implementation; to new employees. and construction of pipeline projects 31.03.2014 list was developed with district managers

208 EVN Full Report 2012/13 EMAS targetEMAS targetEMAS departmenttargets thefollowing measures andimplementedthefollowing tomeet thesecorporateEVN defined goals: Area ofactivity:Resource conservation EMAS targetEMAS targetEMAS EMAS target Department EVN’s energy mixinAustriacontains0%nuclear-generated electricityand0%grey electricity Increase inenergy consultations target

tatus: 0%nuclear-generated electricityandgrey electricityinEVN‘senergy mix tatus: 6,891energy conservation meetingswere held S S utilisation ofsewagesludge WTE projects: energetic electricity inBulgaria Increase safetyinworkingwith Increase efficiency EVN Wärme GmbH heating plantsoperated by atthedistrict plant indicators Continuously improve by EVNWärme GmbH at thebiomassfacilitiesoperated Improve resource conservation Theiss powerplant Theiss aggregate (REA)atthe gasdesulphurisationin theflue Cut energy consumptionby50% power plant EVN steamturbineattheDürnrohr ofthe Increase efficiency Reduce theCO EVN Wärme atof themotorvehiclefleet 2 footprint

at emissions andnatural gasconsumption plants Construction ofsewagesludgeutilisation (5 Project inschools“ “Energy efficiency heatingtransmission optimisation ofdistrict K Optimisation ofstart-upprocess for recording andcontrolrecording ofdata; Steady improvement indataquality; effectiveness suchas improvement inplantindicators optimise technicalcontrolling andresulting implementation ofvaluationmodelsto costs landfill greenhouse gas-relevant emissionsand a meansofreducing resource consumption, year asavaluablesubstitutematerial Use of20%residual biomassasheach Optimisation ofcompressed airsystem steam seepage systemtoevacuate ofadditional Installation vehicles withalternative-drive company in 2013and5%ofdiesel-driven pany vehicleswithnatural gas-drivenvehicles com- Replacement of10% ofdiesel-driven regions of Educationandschoolinspectorsin nine consumption incooperation withtheMinistry orneuburg powerplant;reduction of th Dürnr grade) –informationonelectricity ohr powerplantthrough Measures

Corporate SocialResponsibility

On-Going On-going On-going On-going On-going 2014 target Multi-year On-going Milestone Deadline Measure inimplementation new regions educational tools;expansiontoinclude start oftheprogramme; updatingof have received informationsincethe Approximately 8,700schoolchildren Measure inimplementation Measure inimplementation On-going measure Measure completed partially years to thesystemovernextfive beconnected heatingplantswill district Basic systemunderdevelopment; industry) construction (aboveall firms by disposal 57% ofbiomassashcurrently utilised EVN Full Report2012/13 30 September2013 Status asof —programme CSR

209

Corporate Social Responsibility Department Milestone Status as of Target Measures Deadline 30 September 2013

Proposals to customers to generate their own electricity based on renewable energies (photovoltaic, photovoltaic with investments by residents, small windpower plants, biogas product, etc.) Services to increase energy efficiency and thereby und reduce the use of fossil energy carriers

Renewable energies – services Offering of CO2-certified rates End of and tariffs (Naturkraft, Sonnenstrom etc.) 2013/14 Successfully completed

Information for customers in workshops, roundtable discussions, seminars for university students, media, small and medium-sized companies, energy saving Workshops, cooperations, information campaigns in the media, brochures and Raise customer awareness for the through energy saving campaigns and social energy advice online or through the best use of energy in Macedonia media On-going Customer Care Centre

Energy efficiency clubs and lectures in schools Founding of energy efficiency clubs in Raise customer awareness for on these issues; founding of a joint energy 15 schools with regular lectures; one energy efficiency and the safe efficiency platform together with the workshop held for media representatives handling of electricity in Macedonia Ministry of Economics On-going and one for business customers

Area of activity: Responsible employer

Expansion of internal job market and increase in internal recruiting Status: 80% of management positions were filled internally

Increased share of women in new hiring (based on the current per cent by position) and higher share of women in management development programmes (based on the current per cent of women in management). Status: Share of women in the company was 21.9% – share of women in new hiring equalled 36.8%; share of women in management positions was 7% – share of women in personnel development measures equalled 20%

Development and implementation of target group-specific health programmes for all employees Status: 50% of the employees take part in preventive measures

EVN defined the following department targets and implemented the following measures to meet these corporate goals:

EVN waste: improved protective Protective jackets were tested for the plant clothing for employees areas and made available to employees. 2013 Measure in implementation

Improve employee satisfaction and Continuation of feedback and Implementation completed; discussions identification with the company orientation discussions On-going will be held annually

Support women in technical Teenies’ Day: My future with EVN: Autumn Successfully completed; professions apprenticeship training at EVN 2012 Teenies‘ Day was held in autumn 2012

210 EVN Full Report 2012/13 EVN defined the following departmenttargets thefollowing measures andimplementedthefollowing tomeet thesecorporateEVN defined goals: Area ofactivity:Prevention ofcorruption Department Comprehensive training managersand employeesoncompliance forall strategic businessunitsandfourcountries in five EVN Group compliance management(organisationRoll-out andprocesses) throughout the Target tatus: 30%of managerswere trained; employees were trained asrequired weretatus: Decentralised designated andnationalcomplianceofficers S S of corruption employees Promote healthawareness among Healthy nutrition directors bytheendof2012 directors training conceptforEVNmanaging Develop acorporate governance with humanrightsandprevention active contributiontoobservance Raise employeeawareness and current training programmes Integrate sustainability aspectsin • Riskofblackmail forthecompanyandemployees • Consequencesundercivillaw forthecompanyandemployees • Consequencesundercriminallaw Comply withnational,international rules toprevent: and corporate (CodeofConduct)

Design andimplementationofacompre aidcoursesandhealthcheck-ups First health issues Introduction ofanannuallecture on Further development ofhealthprogramme Information onhealthyon-the-jobnutrition Stocking snackmachines withhealthierfoods training managingdirectors. Development ofamodularconceptfor developed andimplemented. training be andinformingemployeeswill the EVNGroup; communicationtoolsfor hensive compliancemanagementsystemfor On-going advising Training formanagementand employees CSR aspects to identifyopportunitiesforintegration of Discussions withtraining managers Code ofConduct Preparation andcommunicationof Measures

Corporate SocialResponsibility

On-going On-going 01.09.2014 30.12.2013 30.04.2014 31.07.2014 2012 By endof 01.05.2014 On-going On-going Milestone Deadline On-going measure On-going measure further developmentin2013/14 Measure inimplementation; Measure inimplementation Planned Planned Successfully completed Successfully start ofroll-out inSeptember 2013 Design completed, On-going measure Measure inimplementation communication on-goingmeasure Preparation completed, EVN Full Report2012/13 30 September2013 Status asof —programme CSR

211

Corporate Social Responsibility Department Milestone Status as of Target Measures Deadline 30 September 2013

Development of a concept; preparation Special training for managers of comprehensive training materials; on corporate governance and the inclusion of external lecturers; Concept and test courses legal framework for company organisation of test training courses; By end of developed in 2012/13, management. individualisation of training offering 2014 Group-wide roll-out in 2013/14

Introduction of whistle-blowing programmes Implemented in Austria; evaluation Identify inappropriate behaviour throughout the Group 01.09.2014 started in other countries

Preparation of sample documents and Standardise Group-wide corporate instructions for action, clustering of invest- governance to support the ments for classification according to Standardisation in implementation; management of investments in line corporate governance risks; development of By end of clustering of investments will represent with the respective risks control mechanisms for the various risk 2015 the focal point for 2013/14

Area of activity: Sustainable increase in shareholder value

Remain pioneer for sustainability in Austria; continued inclusion in sustainability indices and addition of new listings Status: EVN is currently included in four sustainability indices (VÖNIX, FTSE4Good, ECPI, Ethibel)

Long-term integration of sustainability aspects in risk management Status: 5% of risks based on sustainability aspects

EVN defined the following department targets and implemented the following measures to meet these corporate goals:

WTE: Develop further documentation and controls for Continuation of risk-oriented internal financial reporting processes control system On-going Measure in implementation

Inclusion of CSR as a potential focal point in the TeamMate software used by internal audit. This will ensure that every audit evaluates the relevance of CSR and also allow for the inclusion of CSR as an audit focal point. Standardised instructions (so-called test labels) in the Identification of further goals based on the software will be used to achieve the results of the pilot project 2013/14 intended results.

Successfully completed; CSR was included as a separate point for the first time by internal audit in the form of “compliance Increase awareness for CSR Pilot project carried out in 2013 to integrate with calibrating periods for electricity, in internal audit activities CSR aspects in internal audit activities 2013 natural gas, heat and water meters“.

212 EVN Full Report 2012/13 Area ofactivity:Climate protection and numerous measures inotherimportantareas of activityduringthereporting year: majorareas ofactivity, tothefive In addition EVN also workedondepartmenttargets Department Target threshold startingin2010 of 25%peryearbelowthelegal Dürnr all all and corruptionsaspects)with Planned (incl.social,ecological Anchor integrityclause CSR standards WTE: EstablishGroup-wide hog etrteml tlsto Optimisationofcombustioncontrols through betterthermalutilisation reduceEVN Abfall: emissions climate Increase awareness for Establish Group-wide CSRstandards Reduce NO contractors ohr powerplantbyanaverage protection X emissionsatthe

Voluntary agreement forNO orders/framework agreements Integrity clauseasintegral partofall corruption aspects) integrity clause(incl.social,ecologicaland Preparation andon-goingadjustmentof Development ofaCSRteam CSR materialitymatrix Carry outstakeholder surveyon departments tocompleteCSRmanagement withspecialist CSR target discussions awareness area ofactivityclimateprotection toincrease Two campaignseachyearincoordination key partsoftheintegrityclause Follow-up training forfailure tocomplywith with theintegrityclause Review ofcontractors forcompliance evaluate compliancewiththeintegrityclause questionnairePreparation to ofanaudit CSR targets, organisation andprocesses of Further development andstandardisation + Catalyser washingtoimprove ments etc.: require- of theageequipment,additional remain intactoverthelongterm,irrespective + Purchase oftypescoalwith + Primarymeasures, e.g. filtration efficiency filtration low nitrogen content the optimisationofcombustion Measures

X : thisgoalwill

Corporate SocialResponsibility in July2013 Beginning 01.05.2014 Dec. 2013 2014 On-going annual On-going/ since 2010 On-going, On-going 2014 2013 2012 2012 Milestone Deadline questionnaire forcontractors in 2013withminoradjustmentsto completed;revisionSuccessfully Measure inimplementation Planned Group-wide goals heldin2012/13 d completed;targetSuccessfully monitoring ofCSRmeasures inventory; startofimplementationfor Inclusion ofCSRinriskmanagement Measure inimplementation at EVNWärme contests intheGeneration Segmentand Increased awareness forEMAS through was alsometin2012/13 On-going measure; thisvoluntarytarget compliance withtheintegrityclause In connectionwiththereview of expanded toincludeTOP 20in2015 completed;target canbe audits First (Bulgaria, Macedonia,Croatia) prepared; revision coverentire will Group completed;documentwasSuccessfully orders/contractsall in2012/13 completed;includedin Successfully iscussions and discussions tocombine iscussions anddiscussions EVN Full Report2012/13 30 September2013 Status asof —programme CSR

213

Corporate Social Responsibility Department Milestone Status as of Target Measures Deadline 30 September 2013

Area of activity: Environmental protection

Monitor overflow areas: research/monitor/forecast develop- Trial operations with test probe at ment of blue-green algae Development of a measurement system 2014 the Ottenstein reservoir

Cabling and labelling of overhead power lines to protect the great bustard in Lower Austria Bird protection in Austria as part of the LIFE+ project 2015 Measure in implementation

Protection of stork nests and construction Bird protection in Macedonia of nesting platforms in Macedonia On-going Measure in implementation

Installation of 260 additional nesting Insulation of dangerous masts and power platforms and 217 protective insulations lines to support a project by the Bulgarian bird in 2012/13 (1,100 nesting platforms protection association (BDZP, birdlife), have been installed since the start of the Bird protection in Bulgaria “Save the imperial eagle and the gyrfalcon” 2018 programme)

Area of activity: Human rights

Participation in a United Nations Global Compact (UNGC) corporate workshop Improve understanding of human on human rights followed by internal rights requirements know-how transfer 2012/13 Successfully completed

Area of activity: Internal use of resources PEP implemented at EVN Austria; Project “Intranet 2.0“, implementation of Implementation planned in Reduce flood of emails “Personal Excellence Programme (PEP)“ On-going South Eastern Europe

Implemented in Austria; Implementation Continue PEP programme On-going planned in South Eastern Europe

Successfully completed; Target exceeded; all orders < EUR 100,000 placed Paper-less office Electronic transmission of orders 2012/13 electronically

Electronic archiving of all tender/procurement documents 2012/13 Implementation started

Increase awareness of employees Project “Code green“ (cell phone recycling, in Bulgaria for the careful use of disposal of printer cartridges, recycling paper, Successfully completed; resources etc.) On-going Over 29 tonnes of paper recycled

Area of activity: Stakeholder dialogue

Continue dialogue with all Definition and implementation of Stakeholder survey on EVN materiality stakeholders defined stakeholder concept On-going matrix scheduled for spring 2014

Participation in UNGC working groups, Actively communicate and cooperate Exchange at external CSR events, participation UNGC visit from Taiwan, contribution with other companies; organisation in UN Global Compact (UNGC) steering to Austrian CSR dialogue, respACT of and participation in CSR events committee On-going membership meeting

214 EVN Full Report 2012/13 Area ofactivity:Socialcommitment Area Europe ofactivity:IntegrationSouthEastern Department Target health, knowledgeandskills.“ “Master yourEnergy! Turn itinto Organise tennisweekendforchildren children andyoungpeopleinGermany activities focusedonpr WTE: organise socialsponsoring areas ofBulgaria Organise socialactivitiesinsupply Integrate, modernise increase cultural understanding Introduce keyvalues inBulgariaand CSR standards Establish Group-wide ojects tohelp guar for training overtheentire weekend andtenyearsofage,where EVNnotonlyfive Tennis weekendheldforchildren between WTE SocialFund Annual donationofEUR10,000from gifts Christmas across divisions andbordersacross divisions Internal eventsandknow-howtransfer South EasternEurope (2014) dayforintegration in Human Resources/CSR Croatia andGermany inBulgaria,Macedonia, CSR networkofficers structure inAustria; communicationwith (organisation and processes) similartothe Development ofCSRorganisation antees funding fortheawards, butalso antees funding Measures

Corporate SocialResponsibility On-going On-going On-going On-going 2012/13 On-going Milestone Deadline Measure inimplementation playground )inBurgas during2012/13 measures(incl. energyandanew efficiency the “Kalina Malina“ daycare centre completed;renovationSuccessfully of programme wasstartedin2010 520 children haveparticipatedsincethe Measure inimplementation Measure inimplementation major areas ofactivity and Germanytoidentifydevelop Workshops held in SouthEasternEurope EVN Full Report2012/13 30 September2013 Status asof —programme CSR

215

Corporate Social Responsibility Advisory Committee for Environmental and Social Responsibility

Theodor Zeh (Chairman)

Erika Adensamer, President of the Lower Austrian family association, secondary school teacher

Karl Bader, Member of the Lower Austrian provincial parliament, Mayor of the municipality Rohrbach an der Gölsen, Head of secondary school

Josef Edlinger, Member of the Lower Austrian provincial parliament, farmer

Albert Hackl, Civil engineer, Lecturer at the Institute for Process Engineering, Environmental Engineering and Technical Biosciences, Vienna University of Technology

Kurt Hackl, Member of the Lower Austrian provincial parliament, self-employed

Hermann Helm, Executive President of the Education Board Lower Austria

Josef Hintermayer, Managing Municipal Council of Großweikersdorf, viniculturist

Norbert Hummel, ARGE Compost and Biogas, farmer

Klaus Kastenhofer, Environmental protection organisation GLOBAL 2000

Heinz Kaupa

Gunda Kirchner, Austrian Energy Agency, Head of Energy and Climate Policy, National Economy

Helmut Kroiss, Water Quality, Resource and Waste Management Department, Vienna University of Technology

Hermann Kühtreiber, Mayor of Zwentendorf

Walter Marschitz, Managing Director Hilfswerk Österreich

Georg Mayer, Head of the Economic Policy Department, Lower Austrian Chamber of Labour

Ernst Pucher, Institute for Powertrains and Automotive Technology, Vienna University of Technology

Gerhard Razborcan, Member of the Lower Austrian provincial parliament

Franz Rennhofer, Member of the Lower Austrian provincial parliament, engineer

Klaus Schuster EVN AG physician, Regional Manager NÖ Landeskliniken-Holding for the Mostviertel region

Matthias Stadler, Mayor of the Lower Austrian provincial capital of St. Pölten, employee

Christa Vladyka, Member of the Lower Austrian provincial parliament

Heinz Zimper, District Head, district of Baden

Employee representatives Gerhard Felberbauer, Friedrich Bußlehner, Monika Fraißl (by 30 June 2013), Helmut Peter, Walter Rehwald, Peter Spielauer (since 1 July 2013)

216 EVN Full Report 2012/13 Assurance statement Utility SectorSupplement(EUSS). activities inAustria,Bulgaria,MacedoniaandotherEuropean countriescontrolled from Austria. pr 30 application level A+ orGRI’ the professional judgementoftheVerifier. – – – – – – – – – – – disclosed. LRQA’s responsibility wastocarryoutanassuranceengagementontheReportinaccordance withourcontractEVN. Social Responsibility(CSR)andtheGRIContentIndexforfinancialyear2012/13,beginning1

oduction andsupply,waterpurification andsupplywasteincineration.From ageographicalstandpointtheReportcoversEVN’s main th The Reportrelates totheCSRdataandinformationforallactivitiesofEVNinareas ofpowerproduction anddistribution,heat Based onLRQA’s approach nothing hascometoourattentionthatwouldcauseusbelieve theReportdoesnotmeetGRI’s LRQA’s Recommendations The opinionexpressed inthisAssuranceStatementhasbeen formedonthebasisofalimitedlevelassuranceandatmateriality of Level ofAssuranceandMateriality Confirming thattheGRIindexallowsstakeholderstoaccessCSRperformance indicators. Checking theuseofperformancedatawithinEVN´sbusinessdecision-making pr Note 2:Economicperformancedatawastakendirectly from theauditedfinancialaccounts. not includeverifying databacktoitsoriginalsources, nordiditassesstheaccuracyandcompletenessofdatareported byindividuallocations. Note 1:Theveri Auditing EVN´sdatamanagementpr Interviewing aselectionofemployeesatEVN´sheadquarterinAustria Understanding howEVNdetermine,r Evaluating EVN’ Reviewing EVN´sCSRmaterialitymatrix Reviewing thestakeholderengagementpr To formourconclusions the assurancewasundertakenasasamplingexercise andcovered thefollowingactivities: Evaluate ther V Confirm thattheReportmeetsr The objectivesoftheassuranceengagementwere to: The assurancewasundertakenagainsttheGlobalReportingInitiativeSustainabilityGuidelines2011(GRIG3.1)andGRI’s Electric LRQA’s Approach Ultimately, theReporthasbeenapproved by,andremains theresponsibility ofEVNAG. EVN’s managementwas responsible forpreparing theReportandformaintaining effectivecontrols internal overthedataandinformation Management Responsibility Lloyd’s RegisterQualityAssuranceLtd.(LRQA)wascommissionedbyEVNAG(EVN)toassure its“FullReport2012/13”,sections This AssuranceStatementhasbeenprepared forEVNAG. Terms ofEngagement September2013(“theReport”). alidate EVN´sself-declaration forGRIG3’s application levelA+ eliability ofEVN´sspecified CSRperformancedataandinformation. fication wasundertakenatEVN´sHeadQuarterinMariaEnzersdorf,Austria inaccordance withour contractandtherefore did s materialissuesagainstourownunderstandingofstakeholder thatthisindustryisdealingwith s sectorsupplement requirements as wefoundnothingthatwouldcause ustocontradictthisconclusion. equirements ofGRI’s applicationlevelAandGRI’s EUSS ocesses andreviewing supportingevidencemadeavailablebyEVN. financial year1 espond andreport ontheirmaterialissues

ocess andrelated information related toEVNAG’s FullReport2012/13, st October2012to30

th September2013 ocesses

st EVN Full Report2012/13 October2012andendingthe Corpo 217 rate

Corporate Social Responsibility It is also our opinion that EVN has not excluded any material issues and that their processes for reporting provide reliable CSR performance data and information.

LRQA’s Recommendations EVN AG should consider: – Improving further the monitoring of the implementation of their CSR related activities by introducing a mechanism that reviews regularly the CSR performance and progress against EVN’s strategies. – Developing the understanding of human rights at all levels of operations.

Harald Ketzer LRQA Lead Verifier On behalf of Lloyd’s Register Quality Assurance Lloyd’s Register EMEA Vienna, Austria

LRQA Reference: VNA0004673/0030

Dated: 14 November 2013

This document is subject to the provision below: This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety.

Lloyd’s Register Quality Assurance Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as the ‘Lloyd’s Register Group’. The Lloyd’s Register Group assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant Lloyd’s Register Group entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.

Due to the inherent limitations in any internal control it is possible that fraud, error, or non-compliance with laws and regulations may occur and not be detected. Further, the verification was not designed to detect all weakness or errors in internal controls so far as they relate to the requirements set out above as the verification has not been performed continuously throughout the period and the verification carried out on the relevant internal controls were on a test basis. Any projection of the evaluation of control to future periods is subject to the risk that the processes may become inadequate because of changes in conditions, or that the degree of compliance with them may deteriorate.

The English version of this statement is the only valid version. The Lloyd’s Register Group assumes no responsibility for versions translated into other languages.

218 EVN Full Report 2012/13 Glossary

American Depositary the entire day. In contrast, peak inflows that are largely independ- or avoid certain behavioural pat- Receipts (ADR) load represents a high demand ent of the cash inflows from other terns and to ensure that no one Tradable certificates for for energy in the electricity distri- assets or groups of assets. The achieves an advantage through non-American shares available bution network for short periods present value of future cash flows the evasion of these patterns. in the US; facilitates access for of time. can be used to value a CGU (also non-American companies to see impairment test). Combined cycle heat and US investors. Biogas power/co-generation A mixture comprised largely Certified Emission Simultaneous generation of ARA/ARA region of methane and carbon dioxide Reduction (CER): electrical energy and heat in a The region surrounding which is created during the The CERs stem from projects single facility. Combined produc- Antwerp, Rotterdam and oxygen-free digestion of organic in the Clean Development tion allows the plant to reach a Amsterdam is Europe‘s most renewable raw materials, slurry Mechanism (CDM). Countries or high level of efficiency and, in this important reloading point for or organic residues from the food- companies can purchase emission way, optimally use the primary mineral oil. Trading takes place stuffs industry. credits from emission reduction energy. via short-term contracts. Prices projects being undertaken in the are highly volatile, depending Biomass emerging or developing countries Consolidation range/ on supply and demand (also see The total mass of organic that have not yet made any scope of consolidation Spot market/spot trading). The material (dead life forms, organic commitments to reduce emissions. The group of companies quotation of prices in Rotterdam metabolic products and residues); These credits can then be used included in the consolidated is decisive for the oil price level certain quantities of biomass can to meet the obligations under financial statements; the scope in Europe. be used to generate electricity the European Emissions Trading of consolidation is defined in and heat in combined heat and Scheme. accordance with IAS 27. At equity/ power plants. 1 CER = 1 tonne CO₂ At equity consolidation Corporate

Accounting method for Book value per share CO2 (carbon dioxide) Governance Code the inclusion of investments Carrying amount of share Chemical compound consisting Behavioural code for compa- in companies which are not capital divided by the number of carbon and oxygen which is nies which defines the principles fully consolidated (associates). of shares outstanding as of the largely created by the combustion of good management and control; These investments are initially balance sheet date. of fossil fuels. this is not a set of legal regula- recognised at their acquisition tions, but a guideline that invites

cost, which is adjusted each BOOT model CO2 emission certificate voluntary compliance. year to reflect the change in (Build Own Operate Tranfer) CO₂ emission certificates the investor’s share of profit or See PPP model. were introduced in the European Coverage ratio loss recorded by the associate. Union as of 1 January 2005 as Ratio of the volume of This annual share of profit or Brent part of the drive to implement the electricity produced in EVN’s own loss is reported on the investor’s The most important crude Kyoto Accords and allow the power generating facilities and consolidated income statement. oil for European consumption, emission of a certain amount of the Group’s total sales volume of produced in the North Sea. greenhous gas emissions. The cer- electricity. Austrian Sustainability tificates are allocated within the Reporting Award (ASRA) Capital employed framework of the “National Allot- Degree of efficiency Annual award presented by Equity plus interest- ment Plan“, depending on the The efficiency of a plant repre- the Chamber of Fiduciaries and its bearing loans or assets minus level of a company’s emissions. sents the ratio of input to output cooperation partners for the best non-interest-bearing liabilities. (i.e. the quantity of electrical

environmental and sustainability CO2 emission energy generated in relation to reports published by Austrian Cash flow certificate trading/ the primary energy employed). companies. Balance of the inflows and EU emission trading outflows of cash and cash As part of the EU’s emission Derivative financial Barrel equivalents. Serves as an indi- certificate trading system, the instruments The recognised global unit cator for the assessment of the member states distribute CO₂ Financial instruments which of measurement for crude oil financial strength of a company emission rights to companies. create rights and obligations and petrochemical products; and its ability to make dividend Firms whose actual CO₂ emissions derived from market develop- 1 barrel of crude oil = payments, repay loans and finance exceed the volume of the allo- ments, e.g. options, swaps and 158.987 litres. investments internally. cated certificates must purchase futures. These financial instru- additional emission rights. ments can be used to minimise Base load/peak load Cash-generating unit (CGU) financial risks. Base load is the constant The smallest identifiable group Code of Conduct energy consumption throughout of assets that generates cash Voluntary obligation to follow

EVN Full Report 2012/13 219 Directors-and-Officers Electric mobility the basis for transactions between aiming to “hedge“ a particular (D & O) insurance The use of electric-powered willing and independent partners. transaction concludes another A liability insurance policy vehicles for passenger and com- transaction linked to the under covering damage to assets which mercial transportation. Forward market lying business. is arranged by a company to In contrast to the spot market, protect its corporate bodies and Eligible end customer the forward or futures market is Impairment test key employees. End-customers authorised by characterised by a contractually The carrying amount of an the Energy Act to freely select stipulated time lag between the asset is compared with its fair Dividend yield their energy suppliers in a liberal- conclusion of a transaction and value. If the fair value falls below Ratio of the distributed ised market. actual delivery. At the time a the carrying amount, an impair- dividend to the share price. contract is concluded, the buyer ment loss must be recognised. Energy units is not required to have the neces- This procedure is particularly Earnings before Interest Energy (Wh) = output x time sary liquid funds, nor is the seller important for goodwill, which and Taxes (EBIT) Kilowatt hour: required to have the purchased must be tested for impairment at Also referred to as operating 1 Watt hour (Wh) x 10³ goods. The price of the goods is least once each year. Impairment earnings; an indicator of a com- Megawatt hour MWH: determined at the time the con- testing involves the creation of pany’s ability to generate earnings 1 Wh x 10⁶ tract is concluded. cash-generating units. from its operating activities. Gigawatt hour GWh: 1 Wh x 10⁹ FTSE4Good Index Incentive regulatory model Earnings before Interest, Natural gas energy content: An index that offers sustaina- A regulatory model that Taxes, Depreciation and 1 Nm³ bility-oriented investors an oppor- includes an incentive to improve Amortisation (EBITDA) 1 m³ natural gas = 11.07 kWh tunity to invest in companies that certain parameters, e.g. special Earnings before interest, taxes, meet globally accepted standards network access tariffs that are depreciation and amortisation of Equity ratio for responsible actions in the designed to increase the produc- property, plant and equipment Equity as a per cent of total interest of the environment and tivity of network operators. The and intangible assets; is used as a capital. stakeholders. regulatory authority defines a simple cash flow parameter. general upper limit for network Ethibel Funds from Operations tariffs for a specified regulatory Earnings per share Independent consulting (FFO) period. In order to realise produc- Net profit divided by the aver- agency for environmentally and Net cash flow from operating tivity gains, this upper limit for the age number of shares outstanding socially responsible investments activities minus interest expense. individual operators is reduced by for the period. that advises banks and brokers corresponding deductions. on the development of ethical Gearing Eco Management and savings and investment models. Ratio of net debt to equity. Inhabitant equivalent value Audit Scheme (EMAS) This indicators shows the European Union directive European Energy Global Reporting Initiative expected biological burden of for environmental management Community (GRI) wastewater treatment facilities. It systems. Energy community of the Initiative aimed at developing is based on the population equi European Union whose purpose globally applicable guidelines for valent and calculated by adding Economic Value Added is the development of Europe’s sustainability reporting to ensure the number of inhabitants and the (EVA®) energy markets. the standardised presentation of population equivalent. Difference between the yield companies from an economic, eco- spread (ROCE less WACC) multi- European Energy Exchange logical and social point of view. Interest cover plied by average capital employed; (EEX) The largest energy Ratio of FFO (funds from ope benchmark for the shareholder marketplace in Continental Heating degree rations) to interest expense. value created in a company. Europe, headquartered in Leipzig. total parameter showing the temperature-related energy International Financial E-Control (ECG)/ Ex-dividend day requirements for heating Reporting Interpretation Energie-Control GmbH The day on which shares are purposes. Committee/Standard The regulatory authority traded without an entitlement Interpretation Committee established by lawmakers on the to dividends. On this day the Hedge (IFRIC, formerly SIC) basis of the Energy Liberalisation dividend is deducted from the An instrument used to manage This committee is responsible Act to monitor the implemen price of the respective share. or limit financial risk or to avoid for interpreting and providing tation of the liberalisation process losses resulting from negative more precise information on the for the Austrian electricity and Fair value changes in the market value of IFRSs issued by the International gas markets, and to intervene in The price based on all relevant interest-, currency- or share- Accounting Standards Board the marketplace if necessary. factors in an efficient market; forms related transactions. A company (IASB).

220 EVN Full Report 2012/13 Glossary

International Financial sions as well as the procedure for Peak load Regulatory asset base Reporting Standards/ the issue and distribution of CO₂ See based load/peak load. (RAB) International Accounting emission certificates. The interest-bearing capital Standards Polychlorinated biphenyl base equals intangible assets plus (IFRS, formerly IAS) Net debt coverage (PCB) property, plant and equipment The designation IAS was Ratio of FFO (funds from opera- Toxic chlorine compounds. minus recognised fees for network changed to IFRS in 2001; the IASs tions) to interest-bearing net debt. access and operational readiness issued prior to that year are PPP model (construction subsidies) and any still published under the earlier Net debt (Public Private Partnership) goodwill arising from balance designation. IFRSs/IASs are issued Net total of interest-bearing PPP projects involve the sheet items. Adjustments are by the International Accounting assets and liabilities (issued bonds construction and financing of made to account for the stand- Standards Board (IASB). and liabilities to credit institutes plants for customers; after a ardisation of depreciation periods less loans, securities and liquid predefined period of time, the and the release of construction International Securities funds). plant becomes the property of subsidies. Identification Number the customer. These projects were (ISIN) Net Operating Profit after previously designated as BOOT Regulatory authority Individual security identifi Tax (NOPAT) projects. Public authority responsible cation numbers allow for the com- Taxable profit before the for monitoring the monopoly puterised recording of securities deduction of financing costs. Primary energy areas of the energy market (e.g. on an international basis. Energy obtained from natural energy networks) to ensure free Network access fee sources. In addition to fossil fuels competition and fair pricing Intranet This one-off payment repr e- such as natural gas, petroleum, (also see E-Control GmbH (ECG)). Non-public, in-house corporate sents compensation to the net- black and brown coal, primary computer network. work operator for the expenses energy sources also include Renewable electricity incurred in establishing a net- nuclear fuels like uranium and Electricity that is generated ISO 14001 work connection or modifying renewable energy sources like solely from renewable sources International environmental a connection to accommodate water, sun and wind. like water, wind, biogas, biomass, management standard that increased demand by a network photovoltaic, geo-thermal, landfill defines the requirements for user. Promissory note loan gas and sewage gas. related systems. Large-sized, long-term loans Network loss that are similar to bonds. The Renewable energy Issuer Compliance Directive The difference between the loans are issued to industrial cor- Energy that is considered to Regulation issued by the electrical current fed into an elec- porations and the public sector be continually available based on Austrian Financial Market Author- tricity network and the electrical in exchange for promissory notes a human timeframe; this comes ity in 2007. It defines principles energy that is actually delivered. held by banks, insurers and other from sources such as biomass, for the flow of information in Network losses generally arise due capital providers. A promissory biogas, geo-thermal, solar, hydro- companies as well as organi to the physical characteristics of note includes the obligation to power and wind. sational measures to prevent the the transmission lines. repay the principal together with misuse of insider information. interest. It represents proof that a Results from operating Non-Governmental loan was granted. These loans are activities (EBIT) Kilowatt peak (kWp) Organisation (NGO) not traded on an exchange. See earnings before interest, Maximum output of a photo- Not-for-profit companies that taxes, depreciation and amorti- voltaic module or solar plant. result from civic and social initi Proportionate consolidation sation. atives and include public-minded The assets, liabilities, income Management approach persons or organisations. and expenses of the subsidiary Return on Capital Presentation of the manage- are included in the consolidated Employed (ROCE) ment and controlling aspects of a Other comprehensive financial statements in proportion This ratio shows the return company. income to the stake held by the parent on the capital used in a company. The total of all income not company. For the calculation, net profit National allocation plan recognised through profit or loss for the period and interest (NAP) minus expenses for the reporting Rating/credit rating expense less tax effects are In the course of the EU emis- period that are not recognised Evaluation of issuers and bor- compared with average capital sion trading each country in the through profit or loss. rowers based on their financial employed. In order to consist- European Union must prepare condition; examples of well- ently show the development of and publish a national allocation Payout ratio known international rating agen- the value contribution, operating plan (NAP) that defines an upper Ratio of dividends to earnings cies are Standard & Poor’s and ROCE (OpROCE) is adjusted limit for greenhouse gas emis per share. Moody‘s. for impairment losses, one-off

EVN Full Report 2012/13 221 effects and the market value of line of credit which a company operations are economic value the investment in Verbund AG. can draw upon in varying added and the return on capital amounts, terms and currencies. employed. Return on Equity (ROE) Return on equity is used to Thermal waste utilisation VÖNIX (VBV Austrian evaluate the creation of value by The controlled industrial Sustainability Index) a company on the basis of equity. burning of waste at tempera- Share index comprising the For calculation purposes, net tures exceeding 1,000 °Celsius, listed Austrian companies that profit for period is compared with which leads to the destruction or have taken the lead with regard to average equity. reduction of harmful substances. social and ecological performance. At the same time, the energy Risk management contained in the waste materials Weighted Average Cost of A procedure to identify, assess, is released and used for electricity Capital (WACC) minimise and avoid potential risks generation or district heating. This indicator has two com- (business, operational, financial ponents – the cost of debt and and event risks) wherever possible Total shareholder return the cost of equity – which are through appropriate measures. Benchmark for measuring the weighted according to their share value development of a stock over in total capital. The cost of debt Smart meter/metering a certain period of time; includes equals the actual, average credit An electricity meter with an dividends and the increase in the interest adjusted for tax effects, additional function that allows the share price. while the cost of equity equals utility company to read the meter the return on a risk-free invest- offsite with an online system. UN Global Compact ment plus a risk mark-up that is An initiative launched by calculated individually for every Spot market/spot trading United Nations to support ecolog- company. General designation for ical and economic interests in markets in which delivery, accept- the areas of human rights, work, ance of the goods and payment the environment and corruption. (clearing) are carried out immediately after the conclusion of the Value at Risk (VaR) business transaction (also see Process to calculate the ARA region). potential loss arising from changes in the price of a specific Stakeholder trading position based on a cer- Individuals or groups who tain assumed level of probability. have an active interest in a company. In addition to the owners, Value chain elements stakeholders include employees, The electricity sector is customers, suppliers, states, NGOs generally divided into four value and local interest groups. creation phases: generation, distribution, sale and consumption. Sustainability index In a business environment Value-oriented increasingly shaped by sustaina- and value-generated bility and social responsibility, this management type of index helps sustainability- Value-oriented management oriented investors to identify is focused less on traditional goals companies that are industry such as revenue or net profit, leaders in ecological and social but on increasing stakeholder performance and demonstrate value. Included here are the appropriate behaviour towards interests of shareholders as well the environment and their stake- as other interest groups. All holders. investment decisions are measured based on their contribution Syndicated loan to sustainable value. The main A binding commitment by a indicators used to assess the value banking consortium to provide a development of EVN’s business

222 EVN Full Report 2012/13

Imprint Published by EVN AG, EVN Platz, A-2344 Maria Enzersdorf Phone +43 2236 200-0 Fax +43 2236 200-2030 Announcement pursuant to Section 25 Austrian Media Act: www.evn.at/offenlegung

We have put together this full report with the greatest possible diligence, and have checked the data. Nevertheless, rounding off, compositor‘s or printing errors can not be excluded. In the summing up of rounded amounts and percentages, the application of automatic calculating devices could result in rounding-off differences. This full report also contains forward-looking statements, estimates and assumptions which are based on all the information available to us at the time when this document was completed. Such statements are typically made in connection with terms such as “expect“, “estimate“, “plan“, “anticipate“ etc. We would like to point out that, due to variety of different factors, the performance and results achieved by the company may differ from the expectations and forward-looking statements contained in this report. This full report is also available in German. In case of doubt, the definitive version is the German one. Editorial deadline: 27 November 2013. Disclosure: 12 December 2013.

Photos intro: Daniel Gebhart de Koekkoek Photos Executive Board: Udo Titz Concept and consulting: Mensalia Unternehmensberatungs GmbH Editor and art direction: Ralf Strobl

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The production is carried out with electricity from renewable energy sources. The CO2 emissions arising from the printing production process was compensated in line with the guidelines issued by

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Print CO2 verified Compensation for CO2 emissions arising in the printing process. Support and contribution to climate protection, embedding environmental awareness in our activities. PEFC certification International forest certification system to safeguard and continually improve sustainable forestry Austrian ecolabel Quality, product safety and high environmental standards Environmental management system ISO 14001:2004 Optimisation of environmental processes, prudent use of natural resources

224 EVN Full Report 2012/13 Key figures GRI G3.1 Content Index

VÖNIX, FTSE4Good,Ethibel,ECPI /gb/gb2013 330,000,000.00 EUR 179,878,402 shares AT0000741053 28.08.2014 28.05.2014 11.12.2014 Vienna

EVN Full Report 2012/13 Close to the customer. efficient/ comfortable/ secure/

VÖNIX, FTSE4Good,Ethibel,ECPI /gb/gb2013 330,000,000.00 EUR 179,878,402 shares AT0000741053 28.08.2014 28.05.2014 11.12.2014 Vienna

EVN Full Report 2012/13 Close to the customer. efficient/ comfortable/ secure/