EVN Full Report 2013/14 EVN Full Networked thinking Renewable energy and supply security EVN Full Report 2013/14 58122P_EVN.GB_E.14_Umschlag_einzelseiten.indd 1 01.12.14 17:29 When you think of renewable energy Renewable energy will shape the energy future. But to use it efficiently and effectively, we need intelligent networks that can meet the added technical challenges. EVN has addressed these challenges for many years with massive investments in renewable energy generation plants and the expansion of its smart grids. 58122P_EVN.GB_E.14_Umschlag_einzelseiten.indd 2 27.11.14 22:3401.12.14 17:29 Key figures Change 1) 2013/14 2012/13 nominal in % Employees Sales volumes Number of employees Electricity generation volumes GWh 4,395 3,701 694 18.7 thereof Austria thereof from renewable energy GWh 1,868 1,954 –86 –4.4 thereof abroad Electricity sales volumes to end customers GWh 19,317 20,209 –891 –4.4 Employee fluctuation Natural gas sales volumes to end customers GWh 5,383 6,333 –950 –15.0 Proportion of women Heat sales volumes to end customers GWh 1,991 2,062 –71 –3.4 Training hours per employee Consolidated statement of operations Number of occupational accidents Revenue EURm 1,974.8 2,105.9 –131.0 –6.2 EBITDA EURm 184.1 540.0 –356.0 –65.9 Environment EBITDA margin2) % 9.3 25.6 –16.3 – Quantity of CO Results from operating activities (EBIT) EURm –341.4 242.2 –583.6 – NOX EBIT margin2) % –17.3 11.5 –28.8 – Hazardous waste Result before income tax EURm –373.3 170.7 –544.0 – Water consumption (drinking and process water) EURm Group net result –299.0 109.3 –408.3 – 1) Without building residues and power station by-products Consolidated statement of financial position Balance sheet total EURm 6,841.8 7,283.7 –441.9 –6.1 Equity EURm 2,632.7 3,079.2 –446.5 –14.5 Equity ratio2) % 38.5 42.3 –3.8 – Net debt EURm 1,622.4 1,809.6 –187.2 –10.3 Gearing 2) % 61.6 58.8 2.9 – Return on equity (ROE) 2) % –9.5 5.0 –14.5 – Consolidated cash flow and investments Net cash flow from operating activities EURm 546.0 570.0 –24.0 –4.2 Investments 3) EURm 396.3 372.9 23.5 6.3 Net debt coverage (FFO) 2) % 41.3 38.3 3.0 – Interest cover (FFO) x 8.1 8.8 –0.7 – Value added Net operating profit after tax (NOPAT) EURm 144.5 307.3 –162.8 –53.0 Capital employed4) EURm 4,900.5 5,046.6 –146.1 –2.9 Return on capital employed (ROCE)2) % –3.8 3.9 –7.7 – Operating ROCE 2) % 2.9 6.1 –3.1 – Weighted average cost of capital (WACC)2) % 6.5 6.5 0.0 – Economic value added (EVA®) 5) EURm –174.1 –20.7 –153.3 – Share Earnings EUR –1.68 0.61 –2.3 – Dividend EUR 0.426) 0.42 0.0 – Payout ratio 2) % – 68.6 – – Dividend yield 2) % 4.1 3.7 0.4 – Share performance Share price at 30 September EUR 10.13 11.29 –1.2 –10.3 Highest price EUR 12.50 12.66 –0.2 –1.3 Lowest price EUR 9.76 9.42 0.3 3.6 Market capitalisation at 30 September EURm 1,821.0 2,031.0 –210.0 –10.3 Credit rating Moody’s A3, negative A3, stable – – Standard & Poor‘s BBB+, stable BBB+, stable – – 1) The figures for the prior year were adjusted retrospectively according to IAS 8 (see note 2. Reporting in accordance with IFRS, page 148). 2) Changes reported in percentage points 3) In intangible assets and property, plant and equipment 4) Average adjusted capital employed 5) As defined by Stern Stewart & Co 6) Proposal to the Annual General Meeting 58122P_EVN.GB_E.14_Umschlag_einzelseiten.indd 3 01.12.14 17:29 58122P_EVN.GB_E.14.00_Umschlag_.indd 2 2013/14 2012/13 Employees Number of employees Ø 7,314 7,455 thereof Austria Ø 2,407 2,407 thereof abroad Ø 4,907 5,038 Employee fluctuation % 2.8 3.2 Proportion of women % 21.4 21.9 Training hours per employee hrs. 34.9 31.3 Number of occupational accidents 98 121 Environment Quantity of CO2 emissions (Scope 1) t 2,215,563 1,677,385 NOX emissions t 823 1,065 Hazardous waste1) t 10,703 9,266 Water consumption (drinking and process water) m³ 2,295,021 2,040,939 1) Without building residues and power station by-products Equity, net debt in EURm Cash flow and investments in EURm Gearing in % 570.0 546.0 3,079.2 396.3 2,632.7 372.9 1,809.6 1,622.4 61.6 58.8 2012/13 2013/14 2012/13 2013/14 Equity Cash flow from operating activities Net debt Gearing Investments Revenue, EBITDA in EURm Employees by region EBITDA margin in % 2,105.9 1,974.8 7,445 7,314 5,038 4,907 25.6 540.0 9.3 2,407 2,407 184.1 2012/13 2013/14 2012/13 2013/14 Revenue Abroad EBITDA EBITDA margin Austria 58122P_EVN.GB_E.14_Umschlag_einzelseiten.indd 4 01.12.14 17:29 you should also make intelligent decisions about its distribution 58122P_EVN.GB_E.14.01_Intro_01_28.indd 1 01.12.14 18:35 When you want to have long-term success as an energy provider you should rely on your customers Sustainable success in the energy industry also means solid and long-lasting customer relationships. Mutual trust and good service are another important part of this success. That’s why EVN’s stable, broad and diversified customer base is no coincidence. 58122P_EVN.GB_E.14.01_Intro_01_28.indd 2 01.12.14 18:35 Contents Intro 4 About this report 5 Editorial 6 “Supply security doesn’t happen automatically” (Interview with the Executive Board) 12 Report of the Supervisory Board 15 Operating highlights 2013/14 16 “Energy transition = Renewable energy + strong networks” (Talking with experts) 23 Check of facts Company & strategy 29 Company profile and resources 35 Strategy and values Stakeholder 44 45 Governance, commitment and engagement 50 Stakeholder management 54 Customers 62 Employees 73 Shareholders and investors 77 Society 83 Environment 92 Suppliers Corporate governance report 97 Management report 107 Energy policy environment 110 General business environment 110 Energy sector environment 113 Business development 120 Non-financial indicators 121 Risk management 127 Share structure and capital disclosures 128 Outlook for the 2014/15 financial year Segment reporting 129 Overview 131 Generation 133 Energy Trade and Supply 134 Network Infrastructure Austria 136 Energy Supply South East Europe 138 Environmental Services 140 Strategic Investments and Other Business Consolidated financial statement for 2013/14 142 Service 228 Glossary 232 Main EVN AG subsidiaries 233 CSR programme 243 Advisory Committee for Environmental and Social Responsibility 244 CSR assurance statement 246 GRI G4 Content Index Inside cover Editorial information Inside cover Contacts 58122P_EVN.GB_E.14.01_Intro_01_28.indd 3 01.12.14 18:35 About this report EVN has published an integrated annual and sustainability report, materiality matrix (page 37). In developing this matrix, EVN’s internal the so-called “full report”1), for each financial year since 2009/10. and external stakeholders identified the areas that have the great- The equal treatment of sustainability content, including the CSR pro- est impact, opportunities and risks on the company and its stake- gramme, with the annual report and corporate governance report holders. The CSR materiality matrix is evaluated on a regular basis reflects EVN’s self-image as a responsible energy and environmen- to incorporate new trends and subjects that are relevant to the tal services provider. A central element of EVN’s integrated business various stakeholder groups. The 2013/14 survey led to an update model is the well-balanced treatment of its various stakeholder of the materiality matrix presented in the 2012/13 full report. groups. Their diversity and different information requirements are A detailed list of the areas of activity and the related GRI aspects given equal treatment in the full report. This year’s report is designed used to define the reporting content can be found online under in such a way as to provide easier access to relevant information www.evn.at /EVN-Group/responsibility/CSR-reporting.aspx. through a structure that is focused more closely on the individual In comparison to the prior year report there were neither material stakeholder groups. This report meets the high “Advanced Level” changes in the scope of the report nor in the presentation of infor- standards defined by the UN Global Compact and also qualifies as a mation. In agreement with the GRI reporting standards, this report presentation of EVN’s progress. does not include information of low importance thereby maxi mising relevance and transparency by focusing on the most significant References issues. The indicators that are not applicable to EVN are designated Additional information on certain topics is provided on EVN’s home- as such in the GRI Content Index at the end of this report. page and cross-referenced in this report. The full report also includes references to the GRI standards and to other information within the The Environmental Protection and Controlling Department and the report. Different reference signs are used to facilitate the reader’s Accounting Department were responsible for the data collection orientation inside and outside the report. The signs used in the and calculations. The data are based on the GRI indicator protocol, 2013/14 full report are listed below: which was applied as completely as possible.