Contact EVN’s Annual Financial Report 2010/11 persuant to § 82 article 4 of the Austrian Stock Exchange Act Contact partner for questions regarding Investor Relations EVN Full Report 2010/11 Members of the Investor Relations team Klára Székffy, phone +43 2236 200-12745 Doris Lohwasser, phone +43 2236 200-12473 Sonja Ponsold, phone +43 2236 200-12695 E-Mail: [email protected] Contact partner for questions regarding Corporate Social Responsibility (CSR) Members of the CSR advisory team CSR representative, Gas Network Engineering: Peter Zaruba, phone +43 2236 200-12249, [email protected] CSR organisation, Human Resources: Renate Lackner-Gass, phone +43 2236 200-12799, [email protected] General Secretariat and Corporate Affairs: Ute Teufelberger, phone +43 2236 200-12777, [email protected] Information and Communication: Jochen Kugler, phone +43 2236 200-12139, [email protected] Investor Relations: Doris Lohwasser, phone +43 2236 200-12473, [email protected] Human Resources: Elvira Hammer, phone +43 2236 200-12727, [email protected] Environmental Protection and Controlling: Stefan Vadura, phone +43 2236 200-12217, [email protected] Members of the CSR steering committee Information and Communication: Stefan Zach, phone +43 2236 200-12294, [email protected] Environmental Protection and Controlling: Hans-Georg Rych, phone +43 2236 200-12526, [email protected] Human Resources: Wolfgang Maier, phone +43 2236 200-12787, [email protected] Information on the internet Information on the internet www.evn.at EVN Online Full Report 2010/11 www.investor.evn.at www.investor.evn.at/gb/gb2011 Imprint www.verantwortung.evn.at Published by EVN AG EVN Platz, A-2344 Maria Enzersdorf Phone +43 2236 200-0 Telefax +43 2236 200-2030 EVN. 1) 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 Financial calender 2011/12 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 83rd Annual General Meeting January 19th, 2012 Results HY. 1 2011/12 May 31st, 2012 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. Responsibility with Foresight. Ex-dividend day January 24th, 2012 Results Q. 1–3 2011/12 August 30th, 2012 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 a 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 th th Dividend payment January 27 , 2012 Annual results 2011/12 December 13 , 2012 report is also available in German. In case of doubt, the definitive version is the German one. Editorial deadline: November 24th, 2011. As a responsible energy and environmental services provider, EVN rises up to the th Results Q. 1 2011/12 February 28 , 2012 1) preliminary Coverphoto: Daniel Gebhart de Koekkoek challenge of considering economic, ecological and social aspects of its business operations Idea and consulting: Mensalia as a unified whole – for the purpose of creating a balance among the demands of its EVN share – basic information1) The paper used for this publication is made of raw materials derived from sustainable forestry. different stakeholder groups. This balance is also reflected in the current report, which puts Share capital 330,000,000.00 EUR The production is carried out with electricity from renewable energy sources. The CO2 emissions arising Denomination 179,878,402 no-par bearer shares from the printing production process was compensated in line with the guidelines issued by Print CO2. disclosures on sustainable corporate management in line with GRI indicators on the same Identification Number (ISIN) AT0000741053 footing as financing reporting and the corporate governance report. Print CO tested Compensation for CO emissions arising in the printing process. Support and contribution Tickers EVNV.VI (Reuters); EVN AV (Bloomberg); AT; EVN (Dow Jones); EVNVY (ADR) 2 2 to climate protection, embedding environmental awareness in our activities Stock exchange listing Vienna PEFC certification International forest certification system to safeguard and continually improve ADR programme; Depositary Sponsored Level I ADR program (5 ADR = 1 share); The Bank of New York Mellon sustainable forestry Austrian Ecolabel Quality, product safety and high environmental standards Ratings A3, stable (Moody’s); A–, negative (Standard & Poor’s) Environmental management system ISO 14001:2004 1) As of September 30th, 2011 Optimisation of environmental processes, prudent use of natural resources Contents Management report 2010/11 2 2 Legal framework 6 Overall business environment 7 Energy sector environment 9 Business development 17 Human resources 17 Environment and sustainability 18 Research and development 18 Risk management 23 Disclosures pursuant to § 243a (1) Corporate Code (UGB) 24 Outlook for the 2011/12 financial year Consolidated Financial Statements for 2010/11 26 27 Consolidated Statements of Financial Position 28 Consolidated Statements of Operation 28 Consolidated Statements of Comprehensive Income 29 Consolidated Statements of Cash Flow 30 Consolidated Statements in Changes in Equity 31 Segment Reporting 33 Consolidated Notes 79 EVN’s Investments 85 Auditor's Report Declaration by the Executive Board pursuant to § 82 Sect. 4 (3) of the Austrian Stock Exchange Act 87 Seite 2 von 88 Legal framework Report of the Supervisory Board Management report Management report Legal framework International climate policy The main objective of the United Nations Climate Change Conference which took place in Mexico at the end of 2010 was to conclude a legal follow-up agreement for the Kyoto Protocol which expires in 2012 following the failed attempt in Copenhagen. However, a consensus could only be reached on a minimum target, namely to maintain the Kyoto Protocol until 2012. A follow-up treaty did not materialise. Nevertheless, the countries participating in the conference did agree on the following objectives: they committed themselves to limiting global warming to two degrees Celsius in comparison to the pre-industrial level. The industrialised nations acknowledged the voluntary pledges relating to CO2 emission reduc- tion targets, which were agreed upon at the climate conference in Copenhagen in 2009. Accordingly, they will reduce greenhouse gas emissions by 25% to 40% by the year 2020 compared to 1990. During the next three years an annual emergency assistance package of USD 10 billion will flow into a United Nations fund designed to support countries which are particularly impacted by climate change. By 2020 the financial resources should be increased to a total of USD 100 bil- lion for the benefit of developing countries, without any corresponding decreases in conventional development aid. The funds, which can be raised from either private or public sector sources, will flow into a newly-established “Green Climate Fund”, which will be administered by the United Nations. Moreover, a forest protection programme entitled Reducing Emissions from Deforestation and Degradation (REDD) was created. The next United Nations Climate Change Conference will be held from November 28th to December 9th, 2011 in Durban, Management report South Africa. The goal of the European Union is to conclude a comprehensive and legally binding climate protection treaty for the period after 2012, which will limit the average global temperature to two degrees Celsius above the pre- industrial level. European energy policy On November 10th, 2010, the EU Commission presented its new strategy for competitive, sustainable and secure en- ergy, which was line with the energy policy objectives “Europe 2020” previously approved by the European Council in June 2010. The five energy-related priorities for the next ten years were defined: – Realisation of energy savings with a focus on the two sectors with the biggest potential, i.e. transportation and buildings; – Establishment of an integrated European-wide energy market; – Competitive prices and secure supply based on energy infrastructure investments which should amount to some EUR 1 trillion; – Promotion of technological leadership; – Effective negotiations with international partners and third countries. The strategy was discussed and approved by the European heads of state and government at the first EU Energy Summit held in February 2011. The EU Commission was authorized to develop specific legislative initiatives and proposals over the next 18 months. The EU had previously set a target of increasing the energy efficiency of its member states by 20% by the year 2020. From the EU Commission’s point of view, it is likely that the EU will fall short of achieving this objective unless it imple- ments additional measures. For this reason, it presented its new energy efficiency plan in March 2011. This defined further measures which are designed to lead to a reduction in energy consumption, focusing on the two fields of buildings and industry which together account for close to 70% of the EU’s primary energy consumption. In order to realize these energy savings, the EU Commission envisions appropriate financing aid both on an EU