Is EVN a closed fund

The EVN share Fit for the capital market Fit through the capital market. Dr. Michael Längle, CFO Mag. Sabine Ohler, IRO

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1 The EVN share Fit for the capital market Fit through the capital market 1 Dr. Michael Längle, CFO Mag.Sabine Ohler, IRO 1

2 milestones of the EVN share 1989: privatization of 25% 1990: privatization of 24% 1991: share split 1:: share listing on the Frankfurt and Munich stock exchanges 1991: admission of the sponsored level one ADR program 1993: share listing on the London stock exchange 1995: issue of free shares 5: 1 1998: Issue of a DM and CHF bond 2000: Share split 1: 3 2000: Start of the share buyback program 2001: Capital increase 2001: Issue of a EURO corporate bond 2 IPO of EVN AG - initial situation The way to the partial privatization of the nationalized Electricity companies began to emerge in the mid-1980s. With the amendment to the Second Nationalization Act 1987, the sale of 49% of the share capital of the Verbundgesellschaft and the national companies was made possible. The stock market environment at the end of the 1980s was favorable. The expansion of domestic shares on the Vienna Stock Exchange was particularly striking. New shares were introduced and capital increases in 1984 to a modest extent of less than ATS 200 million. In 1988 this was a multiple of around ATS 5 billion 2

3 Development of sales EUR million / 89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 CAGR 4.7% 3 EVN AG's IPO in 1989, privatization steps and capital measures (1) After ÖMV (OMV), Austrian Airlines, Vorarlberger Kraftwerke and Verbundgesellschaft, EVN took its first step in privatization. For this it was necessary to arouse the interest of investors and to supplement the PR, advertising and marketing area with professional investor relations. Investor Relations measures include all activities that strengthen EVN's image as a blue chip and as the leading Austrian supply company on the Vienna Stock Exchange. (Quoted from: Strategy Paper 1991.) In preparation for the IPO, EVN held company presentations to bank employees who established the connection to private investors. In road shows for analysts, securities dealers and investors, information was provided about the company and its prospects for success. 3

4 EBIT EBIT margin EUR million% *, 2 36 9.2 44 6.4 49 6.9 55 7.4 9.3 9.5 10.7 11.9 11.7 12.6 12.6 11.9 11.5 9.5 88/89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 * before Extraordinary measures EBIT CAGR 4.9% 02/03 4 IPO of EVN AG IPO in 1989, privatization steps and capital measures (2) In November 1989, 25% of the share capital was placed on the stock exchange at an issue price of Schilling per share. When allocating shares, EVN employees, Lower Austrian state employees and customers were given preference. As part of the employee campaign, active employees and 390 retirees bought shares, that is 44% of active employees. Overall, EVN had new shareholders after the first issue. On November 27, 1989, the company was introduced to official trading on the Vienna Stock Exchange. As a result, the share price developed very positively. In March 1990 the Schilling mark was breached. 4th

5 Productivity Number of employees EUR T 34.44 40.46 44.43 49.91 53.73 54.89 58.15 44.30 11.7 9.7 13.3 15.37 18.09 24.59 27. / 89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 EBIT / employees CAGR 9, 4% Number of employees CAGR 2.6% 5 IPO of EVN AG IPO in 1989, privatization steps and capital measures (3) In the second partial privatization step,% of the share capital was listed on the stock exchange in May at an issue price of Schilling. EVN had thus fully exhausted the privatization framework of 49% of the share capital stipulated in the 1987 amendment to the 2nd Nationalization Act. After the second issue, 55% of the employees held around 2% of the share capital. In March 1991 there was a 1:10 share split from a nominal value of 100 Schilling, the EVN share was listed on the Frankfurt and Munich stock exchanges. In the same year, a sponsored level one ADR (American Depositary Receipt) program became the first Austrian company to make the EVN share easier to trade for American investors. EVN shares have also been listed in London since 1993. 5

6 Net income EUR million 102.6 97.5 86.0 81.7 80.2 * 94.5 87.8 89.5 39.3 32.7 39.0 31.9 39.1 41.0 48.5 88/89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 * before extraordinary measures - 187.0 CAGR 6.6% 6 IPO of EVN AG IPO in 1989, privatization steps and capital measures (4) The financial strength of EVN made it possible in 1995 to increase the share capital from its own resources by issuing bonus shares at a ratio of 5: 1. In January 1999, as part of the currency conversion to the euro, all EVN shares were converted into no-par shares. In 2000, another 1: 3 share split was carried out. At the 71st Annual General Meeting on, the EVN Management Board received the authorization to buy back shares amounting to 3% of the share capital. The buyback program served to keep the shareholder structure and the stock exchange price stable. Against the background of the historic opening of the energy market, domestic and foreign competitors acquired larger blocks of shares in EVN. This led to a major change in EVN's shareholder structure. 6th

7 EVN share: Relative price development since IPO () 400% EVN ATX 7 IPO of EVN AG IPO in 1989, privatization steps and capital measures (5) In connection with the purchase of the Lower Austrian water supplier Nösiwag, today's evn wasser, a capital increase was carried out in June 2001 Issue of around 10% new, no-par value bearer shares. In November 2001 EVN issued a 300 million EURO corporate bond, which is listed in Luxembourg and a little later in Vienna. EVN's strategy consistently aimed at a sustainable increase in the company's value and thus an increase in the value of the capital invested by the shareholders. This is also reflected in the long-term price and dividend development of EVN: Since the company's listing on the stock exchange in 1989, the value of the EVN share has risen by around 213%. This corresponds to an annual interest rate of 10.55% (excluding dividends of 8.34% p.a.). 7th

8 The development towards the EVN Group Electricity Gas Heat Water Telecom / Cable TV / Internet Supplementary services (e.g. facility management, digital cartography) Waste management Mid-1990s Mid-1990s 1994/2004 Privatization 8 8

9 The business areas of the EVN Group Telecom Electricity Gas Heat Water Thermal waste recycling Services Generation EVN AG evn naturkraft Handel e & t (31.5%) Network EVN AG Sales EAA GmbH (31.5%) EVN KG Switch (31.5%) Strategic investments BEWAG (33.7%) 1) Energie AG (9.3%) Verbund (10%) Procurement EconGas (15.7%) RAG (30%) Netz EVN AG Sales Econ Gas (15.7%) EVN KG Strategische Participations BEGAS (33.7%) 1) KÖGÁZ (31.2%) Generation Network Sales EVN AG 9 Drinking water supply / wastewater disposal evn wasser Novum WTE 2) Thermal waste recycling plant Dürnrohr AVN 3) EVN AG kabelsignal nökom (50%) UTA (13 , 7%) Allplan (50%) grafotech teletech Toplak (40%) 1) Indirectly held by Burgenland Holding AG (68.9%) 2) From October 1) Full operation from January 1

10 Diversification of sales and risks 1988/89 EUR 541.9 million 2002 /. EUR 1 million 1% 2.0% 3.9% 9.8% 26% 28.1% 56.2% 73% Electricity sales Gas sales Heat sales Electricity sales Gas revenues Heating revenues Water revenues Other revenues (telecom, facility management, other revenues) 10 10

11 Change in appearance 1988 / / / / / / / /

12 Requirements for effective IR work Open and simultaneous communication with all market participants Quarterly reporting and according to international standards Roadshows - time and quality of management Investor targeting and benchmarking analyzes IR website Sustainability reporting Corporate governance Capital Market Day Meeting of private shareholders and public fairs Promotion of the capital market 12 12