Annual Financial Report

2022 /23

Acting sustainably,

investing in

Management report 2022/23

Energy policy environment 03

General business environment 05

Energy sector environment 06

Business development 07

Innovation, research and development 16

Risk management 17

Consolidated non-financial report 22

Disclosures required by § 243a of the Austrian Commercial Code 22

Outlook for the 2023/24 financial year 24

Consolidated financial statements

for 2022/23

Consolidated statement of operations 26

Consolidated statement of comprehensive income 27

Consolidated statement of financial position 28

Consolidated statement in changes in equity 29

Consolidated statement of cash flows 30

Consolidated notes 31

Auditors‘ report 120

Annual financial statements of EVNAG

2022/23 acc. to UGB

(only available in German)

Management report 128

Financial statements 175

Auditors‘ report 182

Notes 187

Declaration by the Executive Board

pursuant to § 124 (1) no. 3 of the

Austrian Stock Exchange Act 2018

(“Börsegesetz 2018”)

Declaration by the Executive Board 208

Contents

EVN Annual Financial Report 2022 / 23

Management report

Energy policy environment

Energy and climate policy

European Union

The EU is working to make Europe the first climate-neutral conti-

nent by 2050, and the associated plans call for a significant reduc-

tion in greenhouse gas emissions by 2030. Against this backdrop,

the EU is continuing the implementation of various legal regula-

tions to create a binding framework for the attainment of these

ambitious goals.

In March 2023, the member states agreed on the basics of a

package for the hydrogen market and the decarbonisation of the

gas market. It is designed to establish the framework conditions

for the gradual transition from fossil natural gas to renewable

gases by creating a competitive market together with the neces-

sary infrastructure. Other key content covers the regulation of the

future hydrogen networks and the improvement of planning and

investment security for networks and storage.

The new EU directive to reform emission trading took effect in

May 2023 and was expanded to also cover the transport and

building sector beginning in 2027. The income from these new

emission trading areas is designated to flow into a climate and

social fund.

The EU Parliament and the Council agreed in autumn 2023 on an

amendment to the Renewable Energy Directive (RED III) which sets

significantly more ambitious goals for the share of renewable

energies in heating and cooling supplies as well as the building,

industry and transport sectors. For the industry sector, the new

goals mean a more rapid conversion to renewable hydrogen. The

directive also requires shorter planning and approval periods for

projects involving the expansion of plants that generate renew-

able energies, networks and energy storage.

The energy crisis triggered by the Ukraine war led to efforts by

the EU Commission in 2023 to prepare and issue a draft for a

new electricity market design. A key objective of these reform

efforts is to contain the negative effects of extreme price fluctua-

tions on the EU market and, in the end, reduce the impact on

consumers. One of the most important measures gives govern-

ments an option to assume the market price risks associated with

investments in plants that generate electricity from renewable

and non-fossil sources. This will provide power plant operators

with greater investment security and customers with relief in the

event of rising market prices. The basis will be formed by the

conclusion of so-called energy sector contracts for difference

between electricity producers and the EU member states. The EU

aims to approve this legislative package on the electricity market

design before the upcoming EU elections in 2024.

Austria

The Renewable Energy Expansion Act, which was enacted in

Austria during July 2021, includes concrete expansion targets. It

requires an increase of 27 TWh per year in renewable electricity

generation by 2030, with 11 TWh coming from photovoltaics,

10 TWh from wind power, 5 TWh from hydropower and 1 TWh

from biomass.

The most relevant points of the Renewable Energy Expansion Act

for EVN’s business activities include the subsidy mechanisms for

the construction of new renewable plants as well as investment

subsidies for electrolysis equipment to convert electricity into

hydrogen or synthetic gas. Investment security will also be created

for existing and future renewable gas generating plants, and an

increase of 5 TWh per year in nationally produced renewable gas

as a share of Austria’s total natural gas volumes is planned by

2030. Other relevant content includes the framework conditions

for citizens‘ and renewable energy communities.

An amendment to the Environmental Impact Assessment Act was

passed in March 2023. It facilitates proceedings and introduces

measures to accelerate the approval of projects that contribute to

the energy transformation.

An amendment to the Federal Energy Efficiency Act in June 2023

finalised the overdue enactment of the EU Energy Efficiency Direc-

tive in Austria.

In October 2023, the federal government agreed on the contents

of a new Renewable Heat Act which, in particular, prohibits the

installation of fossil fuel-based heating equipment in new house-

hold buildings. The Austrian Parliament also approved higher

standards for gas storage as part of a legal amendment during

that same month. It requires gas suppliers to guarantee supply

security at a level of 45 days in the future (instead of the previous

30 days). A storage standard was also introduced for gas-fired

power plants (including combined heat and power plants), and

the strategic gas reserve was extended to 2026.

The Federal Ministry for Climate Action, Environment, Energy,

Mobility, Innovation and Technology is currently working on the

Electricity Industry Act to replace the current Electricity Industry

and Organisat ion Act and to implement the EU‘s Directive on com-

mon rules for the internal market for electricity and the Renewable

Energy Directive. The Electricity Industry Act is expected to provide,

among others, clear rules for energy communities (e. g. concerning

EVN Annual Financial Report 2022 / 23

the operation of storage) as well as new rules for network opera-

tors (e. g. concerning the simplified use of smart meter data for

planning network flexibilities). The new law is also expected to

include additional consumer protection rules.

Federal Act on the Energy Crisis Contribution for

Electricity

To implement an EU regulation on emergency intervention mea-

sures that was issued in autumn 2022, Austria passed the Federal

Act on the Energy Crisis Contribution for Electricity for the period

from 1 December 2022 to 31December2023. The primary goal of

the EU regulation and the related national laws was to present a

temporary answer to the massive distortions on the international

energy markets and the resulting effect on the European society

and economy. Specifically, the member states were permitted to

collect a solidarity levy based on the increased market revenue

from electricity generation and from the crude oil, coal and refin-

ery sectors. The income was to be used to provide financial relief

from the high energy prices for end customers like households and

smaller and medium-sized businesses.

The Austrian Federal Act on the Energy Crisis Contribution for

Electricity calls for a levy equal to 90% of the surplus revenue

from electricity generation. The threshold for the calculation of

surplus proceeds equalled EUR140 per MWh from 1Decem-

ber2022 to 31May2023 but increased up to EUR 176 per MWh

based on theinclusion of allowable investments in renewable

energies and energy efficiency measures. The threshold was

reduced to EUR120perMWh, respectively to EUR156 per MWh

as of 1June2023 based on the decline in the wholesale prices

for electricity.

Regulatory environment

Austria

The operation of the distribution networks and network infra-

structure for electricity and natural gas in Lower Austria is the

responsibility of EVN’s group company Netz Niederösterreich. All

investments and expenditures by this company to ensure the

continuous operations of the network infrastructure are remuner-

ated through network tariffs which are set by the E-Control

Commission each year in accordance with the Austrian regulatory

method.

Key parameters for the determination of the network tariffs

include the interest-bearing capital base (regulatory asset base)

of the network operator and the weighted average cost of capi-

tal. Also included is an incentive in the form of productivity

factors, which serve as cost reduction targets for the respective

company and also include inflationary adjustments. E-Control

sets the weighted average cost of capital and cost reduction

targets for an entire regulatory period, which equals five years

in Austria.

The regulatory authority reduced the weighted average cost of

capital with the start of the new regulatory periods for the elec-

tricity distribution network on 1January2019 and for the natural

gas distribution network on 1January2023, respectively, to reflect

the generally lower interest rate levels. However, a differentiation

was made for the first time between the efficiency of the various

network operators and between existing and new equipment in

order to create incentives for further investments and efficiency

improvements. This benefits network operators with higher pro-

ductivity in industry comparison as well as with the slightly higher

interest rates on the capital required for new investments. EVN’s

network company has received a very positive evaluation from the

regulatory authority for its productivity in peer-group benchmark-

ing. A new regulatory period for the electricity distribution net-

work will start on 1January2024.

Bulgaria

The delivery of electricity to industrial and commercial customers

in Bulgaria has been liberalised. EVN Trading SEE serves as a sup-

plier in this market segment. Household customers remain in the

regulated market and are supplied by EVN Bulgaria EC, which

also acts as a “supplier of last resort” for customers who do not

select another supplier or cannot receive electricity from their

chosen supplier through no fault of their own. In view of the cur-

rent energy policy debate in Bulgaria, it can be assumed that the

transfer of household customers to the liberalised market will be

postponed at least to the end of 2026. Energy sales to customers

in the regulated market segments and the procurement of the

corresponding volumes are based on regulated prices.

The Bulgarian regulatory authority set new energy tariffs for the

regulated market segments as of 1July2023. The electricity prices

for household customers in EVN’s supply area were increased by

3.8% on average (previous year: average increase of 3.6% as of

1July2022).

The new three-year regulation period for the electricity network in

Bulgaria began on 1 July 2021. The regulatory method defines a

revenue cap which covers recognised operating expenses, amorti-

sation and depreciation as well as an adequate return on the regu-

latory asset base. The applied method also includes the projected

network distribution volumes as well as an annually defined invest-

ment factor for planned future investments. EP Yug is responsible

for the operation of the electricity distribution networks in EVN’s

Bulgarian supply area. Due to the decline in electricity prices dur-

EVN Annual Financial Report 2022 / 23

ing the 2022/23 financial year, this company did not receive any

further government compensation payments to cover network

losses (in the previous year, expenses were reduced by these com-

pensation payments).

North Macedonia

In order to achieve the legally required unbundling of the individ-

ual fields in the energy business and meet the related require-

ments, EVN operates through various companies in North

Macedonia. Network operations in the regulated market seg-

ment are the responsibility of Elektrodistribucija DOOEL, while

customers in the liberalised market segment receive deliveries

from the supply company EVNMacedoniaElektrosnabdu-

vanjeDOOEL. EVN MacedoniaElektraniDOOEL serves as a

production com pany. Since 1July2019, EVN Home DOO has

supplied electricity to all households and small businesses in

the regulated market segments based on a license as the

“supplier of universal service”. This license has an initial term

of five years and will be reallocated in the first half of 2024.

EVN Home DOO also serves as a “supplier of last resort” for

customers who do not select another supplier or cannot

receive electricity from their chosen supplier through no fault

of their own.

The regulated electricity prices for the household customers sup-

plied by EVN Home DOO are currently classified in four consump-

tion-based categories. As of 1 January 2023, the prices for all four

categories were raised by 8.7% to 14.4% (1 July 2022: increase of

roughly 21.8%) and the regulated electricity procurement price for

EVN Home DOO was set at EUR 56.0 per MWh (previous year:

EUR48.0 per MWh). The VAT on energy – which was temporarily

reduced to 5% as of 1July2021 as relief for household customers–

was increased to 10% in a first step. These tarif increases were,

however, mitigated for household customers by a reduction of

19.8% in the network tariffs.

The VAT on energy was raised to the pre-crisis level of 18% as of

1July2023. In return, the regulator reduced the electricity prices

for household customers of EVN Home DOO slightly and the regu-

lated electricity procurement price for EVN Home DOO was cut to

EUR53.0 per MWh.

A new three-year regulation period for the North Macedonian

electricity network began on 1July2021 and brought an improve-

ment in the recognition of operating expenses. Similar to the

framework in Bulgaria, the regulatory method for the electricity

network in NorthMacedonia defines a revenue cap which covers

recognised operating expenses, amortisation and depreciation as

well as an adequate return on the regulatory asset base.

Croatia

The liberalisation of the Croatian natural gas market for house-

hold customers was nearly complete in 2022. The market for

commercial and industrial customers has been liberalised since

2012 and is characterised by increasing competition among the

natural gas suppliers active in the country. The new LNG terminal

near the island of Krk was commissioned on 1January2021 and

has further diversified natural gas supplies in Croatia. The sub-

stantial fluctuation in natural gas prices during the reporting

period and the resulting changes in the suppliers’ offering struc-

ture have led to expectations of continued consolidation on the

Croatian natural gas market.

General business environment

The global economy lost substantial momentum in 2022, and this

trend has continued into 2023. The energy crisis and the related, in

part dramatic increase in the market prices for electricity and natu-

ral gas in the previous year have had a stronger impact on Europe

than on the USA, where the economy remains robust despite

monetary policy tightening. Growth in the eurozone equalled a

moderate 3.3% in 2022. Economists currently expect a short time-

span for the recession that has taken hold of several countries as

well as a general improvement in the economy during the coming

year. These assumptions are based on a substantial reduction in

energy prices below the previous highs as well as weakening infla-

tion and the related increase in real income, and an improvement

in the global economic environment. GDP growth in the eurozone

is projected to range from 0.4% to 0.7% in 2023 and from 1.2%

to 1.3% in 2024.

The Austrian economy is currently unable to disengage from the

international economic downturn and has fallen into a recession.

Forecasts now point to a decline of 0.8% in 2023 after the 4.8%

increase in 2022. The underlying factors include the negative

effects of above-average inflation, restrictive monetary policies

and the weak global economy. Added factors are the generally

lower demand following the corona-related catch-up effects and

weaker economic growth, especially in the neighbouring coun-

tries. The industrial sector is confronted with a decline in orders

and high cost pressure. The coming year is, however, expected

to see a recovery in the global economy and an increase in private

consumption as the result of rising real incomes. The GDP in

Austria is expected to increase by 0.8% to 1.2%.

The economic slowdown in Bulgaria became increasingly clear

during the course of the year, and the industrial sector is now in a

Management report — Energy policy environment, General business environment

EVN Annual Financial Report 2022 / 23

GDP growth % 2024f 2023e 2022 2021 2020

EU-28

1) 2) 5 )

1.2 to 1.3 0.4 to 0.7 3.3 5.6 –6.1

Austria

1) 2) 3) 5)

0.8 to 1.2 –0.8 to 0.1 4.8 4.6 –6.6

Bulgaria

1) 2) 4)

1.8 to 3.2 1.5 to 2.0 3.4 7.6 –4.0

Croatia

1) 2) 5)

2.5 to 3.1 1.9 to 2.7 6.2 13.1 –8.5

North Macedonia

4) 5)

2.7 to 3.2 2.0 to 2.5 2.1 3.9 –4.7

1) Source: “European Economic Forecast, Autumn 2023“, EU-Commission, November 2023

2) Source: “Herbst-Prognose der österreichischen Wirtschaft 2023–2024“, IHS, October 2023

3) Source: “Prognose für 2023 und 2024: Kaufkraft steigt nach milder Rezession“, WIFO, October 2023

4) Source: “Global Economic Prospects“, World Bank, June 2023

5) Source: “World Economic Outlook“, International Monetary Fund, October 2023

recession. Exports declined, above all, due to weakening demand

from Western Europe. A new government was formed in May and

is supported by both major political parties. Bulgaria’s accession to

the eurozone has been delayed and will not take place as originally

scheduled on 1January2024. Economic recovery is not expected

before 2024. After a plus of 3.4% in 2022, GDP growth is fore-

casted to range from 1.5% to 2.0% in 2023 and from 1.8% to

3.2% in 2024.

Croatia’s accession to the eurozone and border-free Schengen area

served as a significant source of momentum for tourism in 2023.

The full integration of the country in the EU will help to improve

trade and investments over the long term, as was demonstrated in

2022: EU subsidies supported investment activity in the country at

that time, and this trend has continued in 2023. Economic growth

is currently driven by private household consumption, the largest

component of GDP. However, high inflation is pressuring real

incomes, export activity and the willingness to invest. The GDP

increase of 6.2% in 2022 is expected to be followed by a plus of

1.9% to 2.7% in 2023 and 2.5% to 3.1% in 2024.

Economic growth in North Macedonia slowed as expected during

the second quarter of 2023, chiefly due to high inflation, the

restrictive monetary policy of the North Macedonian central bank

and limited foreign direct investment. Inflation has remained very

high as a result of corporate profits, and the government recently

even introduced price controls for food. Economic growth was

moderate at 2.1% in 2022, and forecasts show an increase of 2.0%

to 2.5% in 2023 and 2.7% to 3.2% in 2024.

Energy sector environment

EVN’s energy business is significantly influenced by external fac-

tors. The weather has a strong influence on the demand for elec-

tricity, natural gas and heat by household customers, while the

general business environment is an important driver for industrial

customers’ energy requirements. Since the start of the Ukraine war

and the related energy crisis, the energy saving steps taken by

many customers in reaction to the rising energy prices have played

an important role. Market prices and, as a result, EVN’s procure-

ment costs are also a function of the geopolitical climate. The rele-

vant factors for energy generation include wind and water flows

as well as solar radiation.

The weather in EVN’s three core markets during the 2022/23

financial year was characterised by milder temperatures. The heat-

ing degree total – which defines the temperature-related demand

for energy – in Austria was slightly lower and in Bulgaria and

NorthMacedonia substantially lower than the long-term average.

In Bulgaria, it reached only 77.7% of the median value. In contrast,

the heating degree totals in the previous year were substantially

above the long-term average in all three countries. The cooling

degree total, which measures the temperature-related demand for

cooling energy, rose substantially year-on-year in all three core

markets during 2022/23. In Austria it was slightly above, and in

Bulgaria and North Macedonia clearly above the long-term average.

The massive fluctuations and distortions in the previous financial

year were followed by a decline in primary energy and energy

EVN Annual Financial Report 2022 / 23

Business development

The scope of consolidation and changes in comparison with the

previous year are explained in the notes to the consolidated finan-

cial statements. Effects from initial consolidations and deconsolida-

tions are of minor significance for the development of the consoli-

dated statement of operations and the consolidated statement of

financial position.

See page 33ff

The notes to the consolidated financial statements also include an

analysis of the potential effects of climate change, the war in

Ukraine and the macroeconomic environment on the recoverability

of assets in accordance with IAS 36 and IFRS 9 and explain further

uncertainty in discretionary assessments.

See page 33ff

prices during 2022/23, especially during the summer months.

Theaverage EEX price for natural gas dropped by half from

EUR123.1per MWh to approximately EUR56.4 per MWh.

However, a contrasting trend appeared towards the end of the

reporting year – with the exception of CO₂ emission certificate

prices. Their price was subject to less fluctuation, but rose by

8%on average over the prior year value of EUR78.0 per tonne to

EUR84.2per tonne in 2022/23.

This development also had an impact on the market prices for elec-

tricity, which declined significantly during the reporting year but

remained high. The spot market prices for base load and peak load

electricity averaged EUR134.4 per MWh and EUR154.8 perMWh,

respectively (previous year: EUR258.7 perMWh and

EUR296.3 per MWh).

Energy sector environment –

indicators 2022/23 2021/22

Heating-related energy demand

Austria 98.7 105.8

Bulgaria 77.7 111.8

North Macedonia 86.1 106.2

Cooling-related energy demand

Austria 101.2 86.4

Bulgaria 120.2 86.5

North Macedonia 131.0 123.0

Primary energy and CO

emission certificates

Crude oil – Brent

EUR/bbl

78.8 89.5

Natural gas – NCG

EUR/MWh

56.4 123.1

Hard coal – API#2

EUR/t

150.4 258.8

emission certificates

EUR/t

84.2 78.0

Electricity – EPEX spot market

Base load

EUR/MWh

134.4 258.7

Peak load

EUR/MWh

154.8 296.3

1) Calculated based on the heating degree total respectively cooling degree total; the basis (100%) corresponds to the adjusted long-term average for the respective countries.

2) Net Connect Germany (NCG) – EEX (European Energy Exchange) stock exchange price for natural gas

3) ARA notation (Amsterdam, Rotterdam, Antwerp)

4) EPEX spot – European Power Exchange

Management report — General business environment, Energy sector environment, Business development

EVN Annual Financial Report 2022 / 23

Statement of operations

Highlights 2022/23

• Earnings improvement in South East Europe; includes, in part,

positive anticipatory and subsequently recognised effects

• Previous year negatively influenced by impairment losses

totalling EUR 114.8m

• Equity accounted energy supply company EVN KG –

as forecasted – with substantial loss of EUR 240.3m (pre-tax)

for theperiod

• Group net result influenced by significantly higher dividend

ofEUR 158.0m from Verbund AG for the 2022 financial year

(previous year. EUR 46.1m)

Results of operations

Revenue recorded by the EVN Group declined by 7.2% year-on-

year to EUR3,768.7m in 2022/23. This development resulted

primarily from a decline in revenue in South East Europe which,

in turn, was caused by lower network and energy sales volumes

and by the downward trend in wholesale prices. In the interna-

tional project business, the largely completed wastewater treat-

ment plant in Kuwait led to lower revenue. This decline was mod-

erated by price and volume effects from renewable electricity

generation, positive valuation effects from hedges, higher reve-

nue from natural gas trading, increased selling prices at EVN

Wärme and higher network tariffs.

The revenue generated by EVN outside Austria amounted to

EUR1,991.2m in 2022/23 (previous year: EUR2,578.6m). This rep-

resents a decrease in the share of Group revenue from 63.5% in

the previous year to 52.8% in 2022/23.

Other operating income rose by 16.4% to EUR127.5m.

Declining wholesale prices in South East Europe led to a reduction

of 26.5% in the cost of electricity purchases from third parties and

primary energy expenses to EUR1,675.5m in 2022/23. These costs

include positive upfront effects from the procurement of energy

to cover network losses, which will be offset in the following year

in accordance with the regulation methodology. Contrasting factors

included, in particular, higher costs for network losses and

upstream network costs at Netz Niederösterreich as well as

increased energy procurement costs of EVN Wärme. Higher elec-

tricity production volumes in the Verbund Innkraftwerke also

increased the cost of electricity purchases from third parties.

The cost of materials and services declined by 6.3% to EUR662.7m

in line with the development of revenue in the international pro -

j ect business and offset inflation-based increases in the other

Group companies.

Personnel expenses were 12.6% higher year-on-year at

EUR419.2m due to adjustments required by collective bargaining

agreements. The EVN Group had an average workforce of 7,255

in2022/23 (previous year: 7,135 employees).

Other operating expenses rose by 27.7% to EUR202.2m. This

amount includes a levy of EUR25.1m on the surplus revenue from

electricity production which is based on the Federal Act on the

Energy Crisis Contribution for Electricity which was implemented

in Austria during December2022 (details on the underlying legal

regulation are provided on page 3f in the section “Energy policy

environment“).

The share of results from equity accounted investees amounted to

EUR–67.6m (previous year: EUR98.9m). This decline – which was

already reported in the first quarter of the financial year and fore-

casted for the entire year – is attributable to the energy supply com-

pany EVN KG, where the development of earnings was significantly

impaired by several factors. They included higher procurement costs

for energy that can only be passed on to customers with a delay,

the lower valuation of hedges as of 30September2023 and addi-

tions to provisions for impending losses from contractual supply

obligations. EVN KG reported a loss of EUR240.3m for the report-

ing year. In contrast, higher earnings contributions were received

from RAG (EUR +27.4m), the Verbund Innkraftwerke (EUR +20.7m)

and Burgenland Energie (EUR+16.6m). A further positive effect was

a revaluation to the Ashta hydropower plant (EUR11.1m).

EVN Annual Financial Report 2022 / 23

Based on these developments, EBITDA recorded by the EVNGroup

rose by 15.1% year-on-year to EUR869.0m in 2022/23.

Scheduled depreciation and amortisation rose by 5.8% to

EUR336.5m based on investments. A year-on-year comparison of

the effects of impairment testing is influenced, above all, by the

absence of impairment losses totalling EUR114.8m from 2021/22

(which involved the international project business, Netz Nieder-

österreich’s natural gas network, district heating equipment in

Lower Austria and the Bulgarian district heating company

TEZPlovidv). Impairment losses in 2022/23 amounted to EUR7.1m

and were related chiefly to district heating equipment in Lower

Austria (EUR5.7m). Revaluations of EUR3.2m were recorded to

plants operated by EVN Wärme and EVN Wasser (previous year:

revaluations of EUR9.6m to the Kavarna wind park).

These developments led to an increase in EBIT to EUR528.5m

(previous year: EUR331.6m).

Financial results improved to EUR127.6m in 2022/23 (previous

year: EUR–30.5m) and were influenced, above all, by an increase

in the dividend from Verbund AG to EUR3.60 per share for the

2022 financial year (previous year: EUR1.05 per share). In total,

the earnings contribution from the Verbund investment equalled

EUR158.0m in 2022/23. Financial results were also supported by

the better performance of the R138 fund and EVN’s cash fund

despite the increase in interest expense. In the previous year,

financial results were negatively influenced by foreign exchange

effects and the value adjustment to a loan extended to an equity

accounted company in the international project business.

The result before income tax totalled EUR656.2m in 2022/23

(previous year: EUR301.2m). After the deduction of income tax

expense – which increased to EUR74.0m (previous year:

EUR64.0m) – and the earnings attributable to non-controlling

interests, Group net result for the 2022/23 financial year equalled

EUR529.7m (previous year: EUR209.6m).

Revenue by region

EURm

South East

Europe

Austria

Central

and Eastern

Europe

2021/22 2022/232020/21

2,004.8

1,497.1

1,046.2

1,483.6

1,777.4

982.1

573.7

494.1

366.6

2,394.9

4,062.2

3,768.7

EBITDA by region

EURm

South East

Europe

Austria

Central

and Eastern

Europe

241.7

150.1

142.9

570.9

556.5

642.3

56.3

48.2

51.3

2022/232021/222020/21

869.0

754.8

836.5

Management report — Business development

EVN Annual Financial Report 2022 / 23

EBIT by segment

EURm

2021/22

2022/23

External revenue by segment

EURm

2021/22

2022/23

South East Europe

Environment

All Other

Segments

Networks

Generation

Energy

159.5

48.0

96.0

54.0

78.6

58.8

29.5

–34.9

255.0

260.3

–90.1

–54.7

Energy

531.4

611.8

24.5

20.6

South East Europe

Environment

All Other

Segments

Networks

564.5

517.3

Generation

1,499.7

2,002.4

132.8

159.5

1,015.9

750.6

Statement of financial position

Asset and financial position

EVN’s balance sheet total declined by 11.5% year-on-year to

EUR10,996.0m as of 30 September 2023.

The carrying amount of equity accounted investees fell sharply due

to the valuation of hedges held by EVN KG and EnergieAllianz as

well as the loss recorded by EVN KG for the reporting period. In

addition, the market price of the Verbund share (EUR77.05 as of

30September2023 versus EUR87.45 as of 30September2022)

was responsible for a decline in other investments. A contrasting

factor was the increase in property, plant and equipment which

resulted from the high level of investments. Non-current assets

declined by 12.4% to EUR9,380.9m.

Current assets were 6.0% lower at EUR1,615.1m in 2022/23,

whereby the high level of investments and capital commitment in

working capital led to a reduction in cash and cash equivalents.

Inventories fell below the level of the previous year which resulted

from the rapid rise in wholesale prices for natural gas and the

build-up of additional strategic natural gas reserves to protect sup-

ply security. In contrast, an increase was recorded in the receiva-

bles due from EVN KG from loans granted by the EVN Group, in

tax receivables and in the receivables from hedging transactions.

Equity totalled EUR6,464.3m as of 30September2023 and was

11.7% lower than on 30September2022, even though the result

after tax for the reporting period exceeded the dividend payment

in February2023 of EUR0.52 per share for the 2021/22 financial

year. This decline was based, above all, on valuation effects

recorded directly in equity without recognition to profit or loss,

in particular to equity accounted investees and to Verbund AG.

These valuation effects are also reflected in the consolidated

statement of comprehensive income, which reduced equity by a

EVN Annual Financial Report 2022 / 23

total of EUR–737.1m in the reporting period (previous year:

increased by EUR895.4m). The equity ratio equalled 58.8% as of

30September2023 (30September2022: 58.9%).

Non-current liabilities declined by 10.4% to EUR3,029.4m, chiefly

due to the reduction in long-term tax liabilities which followed the

lower valuation of equity accounted investees and the investment

in Verbund AG. The development of non-current financial liabilities

reflected the arrangement of four long-term bank loans at a total

of EUR255m, which was contrasted by the reclassification of bank

loans (in total, EUR 200m) and the JPY bond (EUR77.8m) to cur-

rent financial liabilities. The new loans include a “green loan“with

the European Investment Bank (EUR110m), which has already

been drawn down by an initial tranche of EUR105m.

Current liabilities fell by 13.0% to EUR 1,502.2m. The main factors

for this development included a lower balance of liabilities from

derivative transactions and from the procurement of strategic gas

reserves, both of which are recorded under other current liabilities.

A decline was also recorded in investments by EVN KG in the

EVNGroup, which are recorded under other current liabilities.

Value analysis

The weighted average cost of capital (WACC) after tax – including

EVN’s specific company and country risks – was set at 5.0% for

the purpose of corporate management. The operating return on

capital employed (OpROCE) equalled 7.7% for the reporting year

(previous year: 5.5%). The economic value added (EVA

) gener-

ated in 2022/23 totalled EUR 159.4m (previous year: EUR29.3m).

Liquidity position

EVN’s net debt including non-current employee-related provisions as

of 30 September 2023 amounted to EUR 1,364.3m (previous year:

EUR 1,245.1m). The gearing ratio increased from 17.0% to 21.1%.

In order to safeguard its financial flexibility, the EVN Group holds

a syndicated credit line of EUR 400.0m as well as contractually

agreed bilateral credit commitments of EUR 286.0m. These bilat-

eral commitments were not drawn as of 30 September 2023 and

were therefore available in full. The term of the syndicated credit

line which serves as a strategic liquidity reserve will end in

May2025. The remaining terms of the bilateral credit lines con-

cluded with 13 banks range up to two years.

Management report — Business development

Condensed consolidated statement of operations

2022/23 2021/22

/– 2020/21

EURm EURm Nominal % EURm

Revenue

3,768.7 4,062.2 –293.5 –7.2 2,394.9

Other operating income 127.5 109.5 18.0 16.4 250.1

Electricity purchases and primary energy expenses –1,675.5 –2,278.2 602.7 26.5 –1,064.7

Cost of materials and services –662.7 –707.1 44.3 6.3 –509.2

Personnel expenses –419.2 –372.2 –47.0 –12.6 –361.3

Other operating expenses –202.2 –158.4 –43.9 –27.7 –113.0

Share of results from equity accounted

investees with operational nature

–67.6 98.9 –166.5 – 239.6

EBITDA

869.0 754.8 114.2 15.1 836.5

Depreciation and amortisation –336.5 –318.0 –18.5 –5.8 –337.7

Effects from impairment tests –3.9 –105.2 101.3 96.3 –112.4

Results from operating activities (EBIT)

528.5 331.6 196.9 59.4 386.4

Financial results

127.6 –30.5 158.1 – –20.0

Result before income tax

656.2 301.2 355.0 – 366.4

Income tax –74.0 –64.0 –10.0 –15.6 –14.7

Result for the period

582.1 237.1 345.0 – 351.7

thereof result attributable to EVNAG shareholders (Group net result)

529.7 209.6 320.1 – 325.3

thereof result attributable to non-controlling interests 52.4 27.5 –24.9 90.5 26.4

Earnings per share in EUR

2.97 1.18 1.8 – 1.83

1) There is no difference between basic and diluted earnings per share.

EVN Annual Financial Report 2022 / 23

Balance sheet structure

Equity

Non-current

liabilities

Current

liabilities

Current

assets

85.3

86.2

30.09.202330.09.2022

58.858.9

14.713.8 13.713.9

27.6

27.2

Non-current

assets

Statement of cash flows

Gross cash flow rose by 49.9% year-on-year to EUR 1,100.7m

in2022/23, chiefly due to the increase in EVN’s result before tax.

The development of the non-cash earnings components was

characterised by the correction of the negative result from the

equity accounted EVN KG. The increase was reduced by a reduc-

tion in the dividend payments from equity accounted investees

and a year-on-year decline in impairment losses and the non-

cash earnings components in financial results.

Cash flow from operating activities totalled EUR 942.4m and was

negatively affected by working capital developments and by an

increase in income tax payments over 2021/22 but still exceeded

the prior year value of EUR 151.0m. Working capital was

reduced, in part by the liquidity settlement with EVN KG which

followed the capital increases. Other positive effects resulted

from the lower capital commitment in the international project

Condensed consolidated statement of

30.09.2023 30.09.2022

/– 30.09.2021

financial position

EURm

Nominal %

EURm

Assets

Non-current assets

Intangible assets and property, plant and equipment 4,496.9 4,071.3 425.6 10.5 3,908.6

Investments in equity accounted investees and other investments

4,658.8 6,422.0 –1,763.2 –27.5 5,607.0

Other non-current assets 225.2 218.7 6.5 3.0 257.0

9,380.9 10,712.0 –1,331.1 –12.4 9,772.6

Current assets

1,615.1 1,718.5 –103.4 –6.0 1,367.1

Total assets

10,996.0 12,430.5 –1,434.5 –11.5 11,139.8

Equity and liabilities

Equity

Issued capital and reserves attributable to shareholders of EVNAG 6,165.4 7,047.8 –882.4 –12.5 6,281.2

Non-controlling interests 298.9 273.3 25.6 9.4 263.2

6,464.3 7,321.1 –856.8 –11.7 6,544.3

Non-current liabilities

Non-current loans and borrowings 1,103.5 1,150.8 –47.3 –4.1 718.9

Deferred tax liabilities and non-current provisions 1,153.7 1,463.0 –309.3 –21.1 1,480.8

Deferred income from network subsidies and

other non-current liabilities

772.3 769.0 3.3 0.4 738.2

3,029.4 3,382.8 –353.4 –10.4 2,937.9

Current liabilities

Current loans and borrowings 343.2 377.4 –34.3 –9.1 318.0

Other current liabilities 1,159.0 1,349.1 –190.1 –14.1 1,339.6

1,502.2 1,726.5 –224.4 –13.0 1,657.6

Total equity and liabilities

10,996.0 12,430.5 –1,434.5 –11.5 11,139.8

EVN Annual Financial Report 2022 / 23

business which reflected the good progress on WTE’s Kuwait

project and from a reduction in natural gas inventories. However,

working capital was increased by higher receivables from taxes

and from hedges.

Cash flow from investing activities totalled EUR –929.0m

( previous year: EUR –336.7m) and was influenced mainly by the

significant increase in investments and by capital contributions

toEVNKG. Investments were again made in the cash funds

included under current financial investments during the fourth

quarter of 2022/23, following the gradual reduction of these

holdings in the previous quarters and prior year. A contrasting

factor was the increase in network subsidies that accompanied

the higher volume of network investments.

Value analysis

2022/23 2021/22

/–

% 2020/21

Average equity

EURm

6,892.7 6,932.7 –0.6 5,543.8

WACC after income tax

1) 2)

5.0 5.0 0.0 5.5

Operating ROCE (OpROCE)

1) 3)

7.7 5.5 2.1 6.5

Average capital employed

EURm

5,998.9 5,683.2 5.6 4,842.5

Net operating profit after tax (NOPAT)

EURm

459.4 313.4 46.6 312.8

EVA

EURm

159.4 29.3 – 46.4

1) Changes reported in percentage points

2) The WACC given is used for the purpose of corporate management.

3) Adjusted for impairment losses and one-off effects. The market value of the investment in Verbund AG

is not included in capital employed in order to consistently determine the value contribution.

Cash flow from financing activities amounted to EUR1.6m

( previous year: EUR115.8m). It includes the dividend payments to

the shareholders of EVN AG and to non-controlling interests as

well as the scheduled repayment of financial liabilities and the

arrangement of four long-term bank loans with a combined bal-

ance of EUR255m.

Cash flow totalled EUR14.9m in 2022/23, and cash and cash

equivalents equalled EUR20.2m as of 30September2023.

EVNAG also had contractually agreed, undrawn credit lines of

EUR 686m at its disposal at the end of the reporting year to

service potential short-term financing requirements.

Management report — Business development

Capital structure indicators

30.09.2023

EURm

30.09.2022

EURm

/–

30.09.2021

EURmNominal %

Non-current loans and borrowings and leasing liabilities

1,174.8 1,206.1 –31.4 –2.6 773.9

Current loans and borrowings

302.0 128.8 173.2 – 323.4

Cash and cash equivalents –20.2 –36.9 16.7 45.3 –122.3

Non-current and current securities –337.5 –285.6 –51.9 –18.2 –473.5

Non-current and current loans receivable –29.5 –29.4 –0.1 –0.3 –39.6

Financial net debt

1,089.7 983.1 106.6 10.8 461.9

Net debt

1,364.3 1,245.1 119.3 9.6 813.8

Equity

6,464.3 7,321.1 –856.8 –11.7 6,544.3

Gearing (%)

21.1 17.0 4.1 4.1 12.4

1) Excluding bank overdrafts contained in cash and cash equivalents

2) Changes reported in percentage points

EVN Annual Financial Report 2022 / 23

Condensed consolidated statement of cash flows

2022/23 2021/22

/– 2020/21

EURm EURm Nominal % EURm

Result before income tax

656.2 301.2 355.0 – 366.4

Non-cash items 444.5 433.2 11.4 2.6 395.8

Gross cash flow

1,000.7 734.3 366.4 49.9 762.3

Changes in current and non-current balance sheet items –109.5 –556.7 447.2 80.3 94.4

Income tax paid –48.9 –26.6 –22.2 –83.4 –67.0

Net cash flow from operating activities

942.4 151.0 791.4 – 789.6

Changes in intangible assets and property, plant and

equipment incl. deferred income from network subsidies –570.4 –477.4 –93.0 –19.5 –605.9

Changes in financial assets and other non-current assets –333.6 –50.7 –282.9 – –0.3

Changes in current securities –25.1 191.5 –216.5 – –148.1

Net cash flow from investing activities

–929.0 –336.7 –592.4 – –754.3

Net cash flow from financing activities

1.6 115.8 –114.3 –98.6 –53.0

Net change in cash and cash equivalents

14.9 –69.8 84.8 – –17.7

Cash and cash equivalents at the beginning of the period

36.9 122.3 –85.3 –69.8 140.0

Currency translation differences on cash and cash equivalents –31.7 –15.5 –16.2 – 0.0

Cash and cash equivalents at the end of the period

20.2 36.9 –16.7 –45.3 122.3

Investments

Capital expenditure was substantially higher than the previous

year at EUR694.1m in 2022/23 (previous year: EUR564.0m).

This increase was based on the Strategy 2030 which sets the

focal points for EVN’s investments in network infrastructure,

renewable generation, natural heat and drinking water.

Investments in the Energy Segment included the completion of

the new biomass combined heat and power plant in Krems and,

above all, equipment and network expansion measures in the

heating business. In the energy services business, investments in

e-charging stations also increased.

In the Generation Segment, investments focused on the expan-

sion of renewable generation and included wind power projects

as well as large-scale photovoltaic equipment in Lower Austria.

Investments in the Lower Austrian network infrastructure continue

to increase. EVN‘s projects in this area make a key ontribution to

the transformation towards a CO₂-neutral energy system because

the continuous expansion of the networks atallvoltage levels

together with the construction and/or expansion of transformer

stations and substations represent the basic requirements to feed

the growing electricity production from renewable sources into

the energy system. Other investments in this segment included the

kabelplus telecommunication network and also increased over the

previous year.

Net debt and gearing

EURm and %

Gearing

21.1%

17.0%

12.4%

30.09.202330.09.202230.09.2021

Net debt

1,364.3

1,245.1

813.8

For additional information on the composition and terms of

non-current financial liabilities, see page 76f

EVN Annual Financial Report 2022 / 23

EVN’s investments in South East Europe involved network

investments to guarantee supply security and, among others,

theconstruction of further large-scale photovoltaic plants in

North Macedonia.

In line with its corporate strategy, EVN also sets focal points

forits investments in the Environment Segment – namely the

improvement of supply security and quality of drinking water

inLower Austria. The focus here is on the expansion of

cross-regional supply pipelines.

Management report — Business development

Investment priorities

2022/23

EURm

2021/22

EURm

/–

2020/21

EURmNominal %

Energy

61.5 41.7 19.8 47.5 20.5

Generation

117.2 56.0 61.2 – 24.6

thereof renewable energy Lower Austria 100.9 43.1 57.8 – 18.9

thereof thermal power plants 15.5 10.3 5.2 50.4 5.6

Networks

356.0 334.3 21.7 6.5 249.0

thereof electricity networks 277.9 267.4 10.5 3.9 196.0

thereof natural gas networks 48.7 43.3 5.4 12.5 31.3

thereof cable TV and telecommunications networks 29.5 25.3 4.2 16.4 21.7

South East Europe

135.5 110.0 25.5 23.2 100.4

Environment

22.0 19.9 2.1 10.8 20.5

thereof cross-regional supply pipelines and local networks

for drinking water

19.9 18.8 1.1 5.7 18.9

All Other Segments

1.8 2.1 –0.3 –13.0 0.1

Total

694.1 564.0 130.0 23.1 415.0

1) After consolidation

GRI indicator: GRI 203-1

Structure of investments

%, total in EURm

All Other Segments

Environment

South East Europe

Energy

Generation

Networks

0.5

3.2

19.5

8.9

51.3

16.9

0.4

3.5

19.5

7.4

59.3

9.9

2022/232021/22

694.1564.0

0.0

4.9

24.2

4.9

60.0

6.0

2020/21

415.0

EVN Annual Financial Report 2022 / 23

Expenditures for innovation, research and

development projects and share of subsidies

EURm and %

Share of subsidies

Expenditures for innovation, research and development projects

1) Share of subsidies in total expenditure for innovation, research and

development projects

17.7%

5.7%

2.8%

2020/21 2021/22 2022/23

1.4

2.6

4.0

winter half-year – can create challenging situations for supply

security. In light of these developments, EVN is working, for exam-

ple as a project partner with RAG, on a pilot plant that will use

solar energy to operate electrolysis equipment. The resulting green

hydrogen will be stored in an idle RAG natural gas storage facility

and can be used during the winter to generate emission-free elec-

tricity and heat. In other projects, EVN is testing the possibility to

use surplus production from renewable sources for sector integra-

tion purposes or for the substitution of thermal generation. One

example is the pilot hybrid storage facility in Theiss, which com-

bines heat storage equipment with a 5MW storage battery and

photovoltaics.

Other EVN research projects involve innovative approaches to

increasingly utilise flexibilities from various customers and smaller

electricity producers to adjust the demand for energy over time in a

manner that prevents demand peaks and makes it possible to cover

requirements with the available renewable energy. Contributions in

this area are made by CyberGrid, a subsidiary acquired by EVN in

2022, which offers special IT solutions for the flexibility manage-

ment of electricity networks as well as individual projects (e. g. for

the bi-directional charging of e-vehicles) within the framework of

the Green Energy Lab, an interdisciplinary innovation laboratory.

Innovation, research and development

The areas of activity in the EVN materiality matrix also define the

framework for innovation, research and development activities.

Projects are directed primarily to safeguarding supply security,

protecting the environment and resources, and strengthening the

company’s competitive position. The overriding criterion for all

projects is to provide a concrete benefit for customers.

In 2022/23 EVN spent approximately EUR4.0m (previous year:

approximately EUR2.6m) on innovation, research and develop-

ment projects. Public subsidies were received for these projects

and represent a subsidy quota of 2.8%.

An important focal point for EVN’s innovation activities during the

reporting year was formed by storage solutions that will allow

surplus renewable production to be used in periods with lower

energy generation from renewable sources. This challenge must

be solved, particularly from a seasonal viewpoint, to design a

CO₂-free energy system. Electricity generation from wind power

and photovoltaics now frequently exceeds demand during the

summer half-year due to the expansion of capacity, but low water,

wind and sun periods in Central Europe – above all during the

EVN Annual Financial Report 2022 / 23

Risk management

Definition of risk

The EVN Group defines risk as the potential deviation from

planned corporate targets and objectives.

Risk management process

The primary goal of risk management is to protect current and

future earnings and cash flows through the active identification

and control of risk. As part of this process, a centrally organised

corporate risk management department provides the decentralised

risk managers with effective methods and tools for identifying and

assessing risks. The responsible business units communicate their

risk exposures to corporate risk management, which defines suita-

ble actions to minimise these risks. The necessary actions are then

implemented by the individual business units. The corporate risk

management department is also responsible for analysing EVN’s

risk exposure. The risks related to sustainability, climate and com-

pliance issues are identified annually and managed by specialised

organisational units and/or processes in agreement with central

risk management. EVN’s risk management process includes the

following steps:

• Identification: The survey and/or revision of risks based

onthe latest risk inventory (review of risk inventory) and the

identification of new risk positions and appropriate risk

management countermeasures

• Assessment and analysis: The qualitative and quantitative

evaluation of the identified risks; the aggregation of risks

from different points of view; and the modelling of earnings

and cash flow distributions

• Reporting: Discussion and evaluation of the risk profile by

the Risk Working Committee and the Group Risk Committee;

the implementation of further risk management measures

where necessary; reporting on risk issues to the Audit

Committee

• Process review: Definition of the organisational units that

must submit to an explicit risk assessment; regular reviews

to determine whether the methods used to identify and assess

risks should be modified to reflect changed conditions;

routine reviews by the internal audit department

Responsibilities of the Risk Working Committee

The Risk Working Committee supports the corporate risk manage-

ment department in the correct implementation of the risk man-

agement process. It evaluates and approves changes in risk (assess-

ment) methods and defines the type and scope of risk reporting.

The voting members of the committee at the corporate level

include the heads of the following corporate functions: controlling,

legal and public affairs, finance, accounting, internal audit and

thechief compliance officer (CCO) as well as an (internal) energy

industry expert.

Group Risk Committee and control

The results of the risk inventory and the related reports are

presented to and discussed by the Group Risk Committee, which

consists of the Executive Board of EVN AG, the heads of the organ-

isational units and the members of the Risk Working Committee.

TheGroup Risk Committee decides on any need for action, can

establish working groups and assign specified tasks, and is author-

ised to approve the results of the risk inventory (riskreports).

GRI indicator: GRI 2-12

Risk profile

In addition to the normal industry risks and uncertainties, EVN’s risk

profile is influenced primarily by political, legal and regulatory chal-

lenges and changes in the competitive environment. EVN carries out

an annual risk inventory that is updated as needed through ad-hoc

risk reports. This inventory includes the following categorisation of

risks: market and competition risks, financial risks, operating risks,

external risks, strategic and planning risks and other risks. These are

largely assessed in terms of their financial impact on the EVN Group.

The following table shows the risks classified under the above cate-

gories and the measures designated for their minimisation.

In line with the Sustainability and Diversity Improvement Act, the

risk inventory aims to systematically identify potential risks and

effects of EVN’s business activities and business relations on areas

of environmental, social and employee-related issues, the obser-

vance of human rights and the fight against corruption. The identi-

fied risks and their impact were dealt with in accordance with the

steps defined by the risk management process.

For the material impacts, see page 21ff

in the EVN Annual Report 2022/23

Potential climate risks

EVN also places high priority on climate protection, and potential

climate risks are therefore identified as part of the risk inventory.

Climate risk is consciously not defined as a separate risk category

but – wherever applicable – represents interdisciplinary material in

the individual risk categories. A differentiation is made between

transition risks and physical risks: Transition risks include the uncer-

tainties which arise during the transition to a renewable energy

system. Physical risks, in contrast, involve events and changes

caused directly by climatic factors.

Management report — Innovation, research and development, Risk management

Continued on page 20 •

EVN Annual Financial Report 2022 / 23

EVN’s major risks and opportunities as well as related risk mitigation measures

Risk/opportunity category Description Risk mitigation measure

Market and competition

risks/opportunities

Profit margin risk/opportunity

(price and volume effects)

Energy sales and production: failure to meet profit

margin targets

• Procurement and selling prices (esp. for energy

carriers) that are volatile and/or deviate from

forecasts

• Weaker demand (above all due to weather/

climate change, politics, reputation or

competition)

• Decline in own generation

• Reduced project volume in the environmental

services business (in particular due to market

saturation, limited resources for infrastructure

projects, non-inclusion in or failure to win

tenders)

Potential climate risk

Procurement strategy tailored to the market

environment; hedging strategies; diversification of

customer segments and business areas;

product portfolio that reflects customer demands;

longer-term sale of power plant capacity

Supplier risk

Cost overruns on planned projects; incomplete

performance of contracted services or failure to

meetcontract obligations

Partnerships; contractual controls wherever possible;

third party expert opinions

Financial risks/opportunities

Foreign currency risks

Transaction risks (foreign exchange losses) and

translation risks on the conversion of foreign cur-

rency amounts in the consolidated financial state-

ments; financing for Group companies that does not

reflect the respective foreign exchange situation

Monitoring; limits; hedging instruments

Liquidity, cash flow and

financing risk

Failure to repay liabilities on schedule or to obtain

the required liquidity/funds when needed at the

expected conditions; potential climate risk

Long-term, centrally managed financial planning;

safeguarding financing requirements (e. g. through

credit lines)

Market price risks/opportunities

Decline in the value of investments (e. g. funds)

and listed strategic holdings (e. g. VerbundAG,

Burgenland Holding); potential climate risk

Monitoring of loss potential via daily value-at-risk

calculations; investment guidelines

Counterparty/credit risks

(default risks)

Complete or partial failure of a business partner or

customer to provide the agreed performance

Contractual construction; credit monitoring and

credit limit systems; regular monitoring of customer

behaviour; hedging instruments; insurance;

systematic diversification of business partners

Investment risks

Failure of a core subsidiary or holding company to

meet profit targets; potential climate risk

Representation on corporate bodies of the

respective company

Rating changes

Higher refinancing costs due to rating downgrades;

potential climate risk

Ensuring compliance with key financial indicators

Interest rate risks

Changes in market rates; increase in interest

expense; negative effects of low interest rates on

the valuation of assets and provisions and on

future tariffs

Use of hedging instruments; fixed interest rates in

financing contracts

EVN Annual Financial Report 2022 / 23

Impairment risks

Recognition of impairment losses to receivables,

goodwill, investments, generation equipment

and other assets (profitability/value significantly

depen dent on electricity and primary energy prices

and energy sector framework conditions);

potential climate risk

Monitoring via sensitivity analyses

Guarantee risk

Financial loss due to claim of contingent liabilities;

potential climate risk

Limit volume of guarantees as far as possible;

routine monitoring

Strategy and planning risks

Technology risk

Late identification of and reaction to new tech-

nologies (delayed investments) or to changes in

customer needs; investments in “wrong” tech -

nol ogies; potential climate risk

Active participation in external research projects;

own demonstration facilities and pilot projects;

ongoing adjustments to keep technologies at the

latest level

Planning risk

Model risks; incorrect or incomplete assumptions;

lost opportunities

Feasibility studies by experienced, highly qualified

employees; monitoring of parameters and regular

updates; four-eyes principle

Organisational risks

Inefficient or ineffective processes and interfaces;

duplication; potential climate risk

Process management; documentation;

internal control system (ICS)

Operating risks

Infrastructure risks

Incorrect design and use of technical facilities;

potential climate risk

Elimination of technical weaknesses; regular

ins pections and reviews of current and planned

infrastructure

Service disruptions/network

breakdowns (own and third party),

accidents

Supply interruptions; physical danger to persons

orinfrastructure through explosions/accidents;

potential climate risk

Technical upgrading at interfaces of the different

networks; expansion and maintenance of network

capacity

IT/security risks (incl. cybersecurity)

System losses; data loss or unintended transfer;

hacker attacks

Strict system and risk monitoring (internal control

system); backup systems; technical maintenance;

external audits; occupational safety and health

measures; crisis training

Workforce risks

Loss of highly qualified employees; absence due

to work accidents; surplus or shortfall of personnel;

communication problems; cultural barriers; fraud;

intentional or unintentional misrepresentations

of transactions or items in the annual financial

statements

Attractive work environment; occupational health

care and safety measures; flexible working time

models; training; events for employees for the

exchange of information and networking purposes;

internal control system (ICS)

External risks/opportunities

Legislative, regulatory and

political risks/opportunities

Change in political and legal parameters and/or the

regulatory environment (e. g. environmental laws,

changes in the legal framework, shifting subsidy

scheme, market liberalisation in South East Europe);

political and economic instability; network opera-

tions: non-inclusion of actual operating costs in the

networktariffs established by regulatory authority;

potential climate risk

Cooperation with interest groups, associations and

government agencies on a regional, national and

international level; appropriate documentation and

service charges

EVN’s major risks and opportunities as well as related risk mitigation measures

Risk/opportunity category Description Risk mitigation measure

Management report — Risk management

EVN Annual Financial Report 2022 / 23

EVN’s major risks and opportunities as well as related risk mitigation measures

Risk/opportunity category Description Risk mitigation measure

Legal and litigation risks

Non-compliance with contracts; litigation risk from

various lawsuits; regulatory and supervisory audits

Representation in local, regional, national and

EU-wide interest groups; legal consulting

Social and general economic

environment

Macroeconomic developments; debt/financial crisis;

stagnating or declining purchasing power;

rising unemployment; potential climate risk

Best possible utilisation of (anti-)cyclical optimisation

potential

Contract risks

Failure to identify legal, economic or technical

problems; contract risks under financing agreements

Extensive legal due diligence; involvement of

externalexperts/legal advisors; contract database

andongoing monitoring

Other risks

Granting of undue advantages,

non-compliance, data protection

incidents

Distribution of confidential internal information

to third parties and the granting of undue

advantages/corruption; violation of regulations

for the protection of personal data

Internal control systems; uniform guidelines

and standards; Code of Conduct; compliance

organisation

Project risk

Cost overruns on the construction of new capacity;

potential climate risk

Contractual agreement on economic parameters

Co-investment risk

Risks related to the implementation of major

projects jointly with partners; potential climate risk

Contractual safeguards; efficient project

management

Sabotage

Sabotage, e. g. to natural gas lines, wastewater

treatment plants or waste incineration plants

Suitable security measures; regular measurement

of water quality and emissions

Image risk

Reputational damage; potential climate risk Transparent and proactive communications;

sustainable management

Following are several examples that illustrate the allocation of

potential climate risks to EVN’s risk categories:

• Weaker demand due to a mild winter: physical risk that

isassigned to the category “profit margin risk”

• Decline in electricity production due to a climate-related

dropin water flows: physical risk that is assigned to the

category “profit margin risk”

• Damage caused by extreme weather: physical risk that is

assigned to the category “service disruptions/network

breakdowns”

• Change in environmental regulations: transition risk

that is assigned to the category “external risks”; stricter

requirements could possibly lead to additional costs

• Additional stress for the electricity network due to the

ongoing expansion of substantially more volatile renewable

generation: transition risk that is assigned to the category

“operating risks” (“service disruptions/network breakdowns”)

Risk and opportunity analysis for 2022/23

In view of the geopolitical crises during the past two years and

the resulting distortions on energy markets, EVN also monitored

risk developments in the Group throughout the reporting period.

Ad-hoc analyses were not required in 2022/23 but the assess-

ment of the major risks with a potentially high impact was

updated at the end of the first half-year. A report on these risks

and their effects was also presented to the Audit Committee of

EVN’s Supervisory Board.

• Continued from page 17

EVN Annual Financial Report 2022 / 23

The following issues were identified as the major uncertainties

with the potentially highest effects and analysed in particular

detail in connection with the risk inventory carried out as of

30September 2023 (excerpt):

• Margin risk and competitive situation

• Inflation-related increase in procurement costs for

investments and maintenance

• Completion risk for major international projects in the

environmental business

• Cybersecurity

EVN’s risk profile is influenced primarily by common industry risks

and uncertainties and, in particular, by political, legal and regula-

tory challenges and changes. All these aspects are categorised as

part of EVN’s risk management process.

Overall risk profile

In addition to the uncertainties connected with the areas of

business and operations outside Austria, EVN continues to be

confronted with a challenging environment in its home market

of Lower Austria. In the 2022/23 financial year, however, the

uncertainties decreased. The overall risk profile of EVN is trend-

ing downwards, but not yet to pre-crisis levels. To conclude, no

future risks can be identified at the present time that could

endanger the continued existence of the EVN Group.

The table on the pages 18 to 20 provides a summary of the

material risks and uncertainties to which the EVN Group is

exposed. For the first time, this table also includes opportunities

for certain categories, if applicable.

Key features of the internal control and risk management

system related to accounting processes

In accordance with § 267 (3b) and in connection with § 243a (2)

of the Austrian Commercial Code, those companies whose shares

are admitted for trading on a regulated market are required to

disclose the key features of their internal control and risk manage-

ment system for corporate accounting processes in the manage-

ment report. The Executive Board is responsible for establishing a

suitable internal control and risk management system (ICS) for

accounting processes as defined in § 82 of the Austrian Stock

Corporation Act. The effectiveness of the ICS must be monitored

by the Audit Committee in accordance with § 92 (4a) no. 4b of

theAustrian Stock Corporation Act.

EVN’s ICS for accounting processes is monitored at regular inter-

vals by auditing the processes that are considered to be exposed

to risk. The results of these monitoring activities are reported to

the Executive Board and the Audit Committee. The ICS ensures

clear lines of responsibility and eliminates unnecessary process

steps, and thereby further improves the security of processes for

the preparation of financial statements. The description of the

major features of the ICS covers five interrelated components:

control environment, risk assessment, control activities, informa-

tion and communication, and monitoring.

Control environment

The Code of Conduct issued by EVN and the underlying values

apply to all Group employees.

EVN’s Code of Conduct is available under

www.evn.at/code-of-conduct

The consolidated financial statements are prepared by Group

accounting. The related processes are based on a uniform

accounting guideline that defines the accounting policies to be

applied as well as key processes and schedules for the entire

Group. Binding instructions apply to the reconciliation of intra-

group accounts andother work required for the preparation

ofthe consolidated financial statements. All employees involved

inthe accounting process have the necessary qualifications and

undergo regular training. Complex actuarial opinions and valu-

ations are prepared by external experts or specially qualified

employees. The managers responsible for the specific processes–

in general, the heads of theorganisational units and corporate

services – are responsible for compliance with these processes

andthe related control measures.

Risk assessment and control activities

Multi-stage control measures have been implemented to prevent

material misstatements in the presentation of transactions in order

to ensure that the individual financial statements of all subsidiaries

are recorded correctly. These measures include automated controls

that are executed by the consolidation software as well as manual

controls by the involved corporate services. These corporate service

departments carry out extensive plausibility checks of the individual

subsidiaries’ financial statements to ensure their correct transfer to

the consolidated financial statements. The review of the financial

statement data includes analyses at the position, segment and

Group levels, both before and after consolidation. The consolidated

financial statements are not released until these quality controls

are complete at all levels.

EVN AG and the major domestic and foreign subsidiaries use SAP

software (FI module, finance and accounting) for their accounting.

The IFRS consolidated financial statements are prepared with the

Hyperion Financial Management software, whereby the data from

Management report — Risk management

EVN Annual Financial Report 2022 / 23

the individual financial statements of the consolidated companies

are transferred by means of an interface. The accounting systems

and all upstream systems are protected by restricted access as well

as automated and mandatory manual control steps.

The ICS for financial reporting and all accounting-related processes

are reviewed by the auditor at least once each year to verify com-

pliance with the required controls, to evaluate any risk incidents

that occurred during the financial year and to determine whether

the controls are still suitable to deal with the existing risks. In the

reporting period, a number of process adjustments and improve-

ments were made as part of the continuous efforts to further

develop the ICS for financial reporting.

Information, communication and monitoring

The Executive Board provides the Supervisory Board with quarterly

reports on EVN’s asset, financial and earnings position, together

with a statement of financial position and a statement of opera-

tions. The Executive Board and the Audit Committee also receive a

report on the ICS for financial accounting twice each year, which

contains basic information to evaluate the efficiency and effective-

ness of the ICS and is designed to support the management of the

ICS by the responsible corporate bodies. The report is prepared

byICS management in cooperation with the ICS Committee based

on information supplied by the managers responsible for ICS, the

persons who carried out the controls and the auditors.

This information is also distributed to management and key

personnel in the involved companies to facilitate monitoring and

control activities and thereby ensure the accuracy of accounting

and reporting procedures. EVN’s internal audit department carries

out regular reviews of the ICS for financial accounting, and their

findings are also included in the continuous improvement of this

system.

GRI indicators: GRI 2-12, GRI 2-16

Consolidated non-financial report

The consolidated non-financial statement required by the Austrian

Sustainability and Diversity Improvement Act was prepared in

accordance with § 267a of the Austrian Commercial Code and is

presented as an independent non-financial report.

See page 1ff in the EVN Annual Report 2022/23

Disclosures required by § 243a of the

Austrian Commercial Code

1. The share capital of EVN AG totalled EUR330,000,000 as of

30September2023 and was divided into 179,878,402 zero

parvalue bearer shares, each of which represents an equal

stake in share capital. Shareholders are not entitled to the issue

of individual share certificates. There is only one class of shares,

and all shares carry the same rights and responsibilities.

EVNAG shares are traded in the Prime Market segment of

theVienna Stock Exchange.

EVN Annual Financial Report 2022 / 23

2. There are no restrictions on voting rights or agreements

limiting the transfer of shares which exceed the general

requirements of the Austrian Stock Corporation Act. However,

itshould be noted that the transferability of the investment

owned by the province of Lower Austria, which holds its shares

through NÖ Landes-BeteiligungsholdingGmbH, St. Pölten, is

limited by Austrian federal and provincial consti tutional law.

NÖ Landes-Beteiligungsholding GmbH (“NLH“) and Wiener

Stadtwerke GmbH (“WSTW“) established a tax participation

association on 23September2021, for which they concluded

an “agreement over the creation of a tax participation associ-

ation for their investments in EVN AG“. This contract basically

calls for the syndicated exercise of voting rights by NLH and

WSTW in the Annual General Meetings of EVN but reflects

only the voting weight in the Annual General Meeting based

on the respective investments held by NLH and WSTW and in

accordance with legal regulations and/or the articles of associ-

ation (NLH continues to hold a simple – but not qualified–

majority and WSTW continues to hold a blocking minority).

3. Based on the above-mentioned constitutional requirements,

the province of Lower Austria is the major shareholder of

EVNwith a stake of 51.0%. The second largest shareholder is

Wiener Stadtwerke GmbH, Vienna, with a stake of 28.4%;

thiscompany is wholly owned by the city of Vienna. As of

30September2023, EVNheld treasury shares representing

0.9% of share capital and free float equalled 19.7%.

4. EVN has not issued any shares with special control rights.

5. Employees who own shares in EVN may exercise their voting

rights personally at the Annual General Meeting. EVNdoes not

have a stock option programme.

6. The Executive Board consists of at least two members. The

Supervisory Board has a minimum of eight and a maximum of

12members. Unless another majority is required by law, the

Annual General Meeting passes its resolutions with a simple

majority of the votes cast or with a majority of the capital rep-

resented in cases requiring a majority of capital.

7. There were no authorisations as defined by § 243a (1) no. 7 of

the Austrian Commercial Code in effect during the 2022/23

financial year which entitled the Executive Board, in particular,

to issue the company’s shares. However, the possibility of

issuing previously repurchased treasury shares to employees

remains intact.

8. A change of control in EVN in the sense of § 243a (1) no. 8 of

the Austrian Commercial Code is currently not possible because

of the legal regulations described above under points 2. and 3.

Therefore, there are no possible consequences of a change of

control.

9. There are no agreements to provide compensation to the

members of corporate bodies or employees in the event of

a public takeover.

Management report — Risk management, Consolidated non-financial report, Disclosures (§ 243a Austrian Commercial Code)

EVN Annual Financial Report 2022 / 23

In South East Europe, the sharp rise in electricity prices also created

significant challenges in the various market segments. Regulatory

measures, for example as compensation for the additional costs for

covering network losses, had positive anticipatory effects that will

be offset in 2023/24 in accordance with the regulatory mechanism.

We initiated a structured bidder process for the international pro -

j ect business in September 2023. Its goal is to identify potential

new investors for WTE who can support the realisation of the

future international project and growth potential that is offered,

above all by the successful project in Kuwait.

For the 2023/24 financial year, EVN expects Group net result

within a range of roughly EUR420m to EUR460m – under the

assumption of a stable regulatory and energy policy environment.

EVN’s future dividend policy has also been revised to reflect the

investment and growth perspectives up to 2030 and beyond. The

dividend will equal at least EUR0.82 per share in the future,

whereby EVN wants its shareholders to appropriately participate in

any additional earnings growth. In the mid term, a payout ratio

equalling 40% of Group net result, adjusted for extraordinary

effects, is targeted.

These future perspectives underscore EVN’s responsibility to

remain a reliable operator of energy and drinking water infrastruc-

ture. At the same time, EVN also offers attractive opportunities

for the capital market.

Maria Enzersdorf, 21 November 2023

Stefan Szyszkowitz Franz Mittermayer

Spokesman of the Executive Board Member of the Executive Board

Outlook on the 2023/24 financial year

Following the new historical level of investments reached during

the past financial year, annual investments will range from

EUR700m to EUR900m up to 2030, whereby three-fourths will

focus on Lower Austria. That makes EVN one of the key players in

the design of a CO₂-free energy future. The necessary foundation

is formed by a high-performance electricity network infrastructure

and, consequently, up to EUR450m will be directed to this area

each year. These investments will safeguard Lower Austria’s lead-

ing position in renewable generation because an efficient and sta-

ble network is the basic condition for integrating the electricity

generated by the wind, sun and water in the energy system. Mar-

ketable solutions must also be found to utilise the surplus produc-

tion from renewable generation across multiple sectors or – even

more decisive for the success of a year-round CO₂-free energy

future – to be stored over several seasons. We will continue to

address this essential future issue as part of our innovation activi-

ties and work to develop solutions, for example together with

RAG, through promising projects.

The expansion of our own renewable generation capacity has also

reached a historically high level. In addition to the construction of

wind parks, the realisation of large-scale photovoltaic plants has

increased rapidly. Our installed photovoltaic capacity will double to

roughly 80MWp in the first quarter of 2023/24 with the commis-

sioning of plants in Dürnrohr and North Macedonia – an important

step to reach the goal of 300MWp for photovoltaics by 2030. In

the wind power field, a pipeline of projects in different phases of

completion in Lower Austria will help us meet our expansion goal

of over 770MW by 2030.

The crisis that has influenced the international energy markets for

the past two years has, at times, triggered unexpected and erratic

price fluctuations. This has led to an enormous burden not only for

our customers, but also for the profitability of our energy supply

business. We expect a return to positive earnings in 2023/24 after

spot and futures prices gradually decline.

25EVN Annual Financial Report 2022 / 23

Consolidated statement of operations

Consolidated statement of comprehensive income

Consolidated statement of ﬁnancial position

Consolidated statement of changes in equity

Consolidated statement of cash ﬂows

Consolidated notes

31 Basis of preparation

33 Basis of consolidation

39 Accounting policies

56 Notes to the consolidated statement of operations

64 Notes to the consolidated statement of ﬁnancial position

85 Segment reporting

90 Other information

EVN’s investments

115

Auditors’ report

120

Consolidated financial statements

for 2022/23

According to International Financial Reporting Standards

26EVN Annual Financial Report 2022 / 23

Consolidated statement of operations

EURm Note

2022/23 2021/22

Revenue

25 3,768.7 4,062.2

Other operating income 26 127.5 109.5

Cost of materials and services 27 –2,338.2 –2,985.3

Personnel expenses 28 –419.2 –372.2

Other operating expenses 29 –202.2 –158.4

Share of results from equity accounted investees with operational nature 30 –67.6 98.9

EBITDA

869.0 754.8

Depreciation and amortisation 31 –336.5 –318.0

Effects from impairment tests 31 –3.9 –105.2

Results from operating activities (EBIT)

528.5 331.6

Results from other investments 169.0 51.4

Interest income 16.5 5.4

Interest expense –57.4 –37.9

Other ﬁnancial results –0.5 –49.4

Financial results

32 127.6 –30.5

Result before income tax

656.2 301.2

Income tax 33 –74.0 –64.0

Result for the period

582.1 237.1

thereof result attributable to EVNAG shareholders (Group net result) 529.7 209.6

thereof result attributable to non-controlling interests 52.4 27.5

Earnings per share in EUR

34 2.97 1.18

Dividend per share in EUR 46 1.14

0.52

1) There is no difference between basic and diluted earnings per share.

2) Proposal to the Annual General Meeting: dividend of EUR 0.52 plus a special dividend of EUR 0.62 per share

27EVN Annual Financial Report 2022 / 23

Consolidated financial statements — Consolidated statement of operations,

Consolidated statement of comprehensive income

EURm Note

2022/23 2021/22

Result for the period

582.1 237.1

Other comprehensive income from

Items that will not be reclassiﬁed to proﬁt or loss

–388.2 147.2

Remeasurements IAS 19 47 –26.7 78.1

Investments in equity accounted investees 47 1.3 16.8

Shares and other equity instruments measured at fair value and reported

in other comprehensive income

47, 63 –479.0 2.3

Thereon apportionable income tax expense 47 116.2 50.0

Items that may be reclassiﬁed to proﬁt or loss

–931.1 511.1

Currency translation differences 5 –15.9 31.4

Cash flow hedges 47 235.4 –184.1

Investments in equity accounted investees 47 –1,435.3 793.6

Thereon apportionable income tax expense 47 284.8 –129.7

Total other comprehensive income after tax

–1,319.3 658.3

Comprehensive income for the period

–737.1 895.4

thereof income attributable to EVNAG shareholders –790.5 858.5

thereof income attributable to non-controlling interests 53.3 36.9

28EVN Annual Financial Report 20 22 / 23

Consolidated statement of ﬁnancial position

EURm Note

30.09.2023 30.09.2022

Assets

Non-current assets

Intangible assets 35 211.2 190.9

Property, plant and equipment 36 4,285.7 3,880.4

Investments in equity accounted investees 37 1,103.4 2,388.0

Other investments 38 3,555.5 4,034.0

Deferred tax assets 51 50.9 55.6

Other non-current assets 39 174.3 163.0

9,380.9 10,712.0

Current assets

Inventories 40 137.7 206.8

Income tax receivables 51.3 –

Trade and other receivables 41 1,083.6 993.5

Securities and other current ﬁnancial investments 42 266.5 216.8

Cash and cash equivalents 61 70.2 292.0

Assets held for sale 43 5.8 9.3

1,615.1 1,718.5

Total assets

10,996.0 12,430.5

Equity and liabilities

Equity

Issued capital and reserves attributable to shareholders of EVNAG 44–48 6,165.4 7,047.8

Non-controlling interests 49 298.9 273.3

6,464.3 7,321.1

Non-current liabilities

Non-current loans and borrowings 50 1,103.5 1,150.8

Deferred tax liabilities 51 785.9 1,126.7

Non-current provisions 52 367.7 336.2

Deferred income from network subsidies 53 683.3 631.3

Other non-current liabilities 54 89.1 137.8

3,029.4 3,382.8

Current liabilities

Current loans and borrowings 55 343.2 377.4

Income tax liabilities 63.9 54.9

Trade payables 56 463.2 436.7

Current provisions 57 134.4 135.5

Other current liabilities 58 497.1 720.7

Liabilities in connection with assets held for sale 43 0.4 1.3

1,502.2 1,726.5

Total equity and liabilities

10,996.0 12,430.5

29EVN Annual Financial Report 20 22 / 23

Consolidated financial statements — Consolidated statement of financial position,

Consolidated statement of changes in equity

EURm

capital

premium

and

capital

reserves

Retained

earnings

Valuation

reserve

Currency

translation

reserve

Treasury

Issued capital

and reserves

of EVNAG

shareholders

Non-

controlling

interests Total

Balance on 30.09.2021

330.0 254.2 2,863.0 2,860.6 –8.1 –18.5 6,281.2 263.2 6,544.3

Comprehensive income

– – 209.6 617.7 31.3 – 858.5 36.9 895.4

Dividends 2020/21

– – –92.7 – – – –92.7 –26.7 –119.4

Change in treasury shares

– 0.4 – – – 0.4 0.8 – 0.8

Balance on 30.09.2022

330.0 254.6 2,979.9 3,478.3 23.2 –18.1 7,047.8 273.3 7,321.1

Comprehensive income

– – 529.7 –1,304.3 –15.9 – –790.5 53.3 –737.1

Dividends 2021/22

– – –92.7 – – – –92.7 –27.7 –120.4

Change in treasury shares

– 0.4 – – – 0.4 0.8 – 0.8

Balance on 30.09.2023

330.0 254.9 3,417.0 2,174.0 7.3 –17.7 6,165.4 298.9 6,464.3

Note 44 45 46 47 5 48 49

30EVN Annual Financial Report 2022 / 23

Consolidated statement of cash flows

EURm Note

2022/23 2021/22

Result before income tax

656.2 301.2

+ Depreciation, amortisation/ – revaluation of intangible assets and property, plant and equipment

and other non-current assets

342.0 423.2

– Results of equity accounted investees and other investments 37, 38 –101.4 –150.3

+ Dividends from equity accounted investees and other investments

274.7 204.0

+ Interest expense

57.4 37.9

– Interest paid

–46.0 –36.1

– Interest income

–16.5 –5.4

+ Interest received

15.4 5.2

+ Losses/– gains from foreign exchange translations

3.9 27.1

/– Other non-cash ﬁnancial results

–3.3 15.0

– Release of deferred income from network subsidies 60

–64.1 –58.8

– Gains/+ losses on the disposal of intangible assets and property, plant and equipment

–3.3 2.8

– Decrease/+ increase in non-current provisions 52

–13.8 –33.3

+ Impairments/ – write ups due to revaluation of a disposal group

–0.3 1.9

Gross cash ﬂow

1,100.7 734.3

+ Decrease/– increase in inventories and receivables

3.2 –426.6

+ Increase/– decrease in current provisions

–10.5 10.7

+ Increase/– decrease in trade payables and other liabilities

–102.3 –140.8

– Income tax paid

–48.9 –26.6

Net cash ﬂow from operating activities

942.4 151.0

+ Proceeds from the disposal of intangible assets and property, plant and equipment

6.2 3.9

+ Proceeds from network subsidies

114.5 82.9

+ Proceeds from the disposal of ﬁnancial assets and other non-current assets

3.6 10.4

+ Proceeds from the disposal of current securities and other current ﬁnancial investments

70.5 696.3

– Acquisition of intangible assets and property, plant and equipment

–691.0 –564.2

– Acquisition of ﬁnancial assets and other non-current assets

–331.3 –61.1

– Acquisition of current securities and other current ﬁnancial investments

–95.6 –504.8

– Acquisition of subsidiaries less acquired cash and cash equivalents 4

–5.9 –

Net cash ﬂow from investing activities

–929.0 –336.7

– Dividends paid to EVN AG shareholders 46

–92.7 –92.7

– Dividends paid to non-controlling interests

–27.7 –26.7

+ Sales of treasury shares

0.8 0.8

+ Increase in ﬁnancial liabilities 60

256.7 562.0

– Decrease in ﬁnancial liabilities 60

–123.7 –320.7

– Decrease in leasing liabilities 60

–11.8 –6.9

Net cash ﬂow from ﬁnancing activities

1.6 115.8

Net change in cash and cash equivalents

14.9 –69.8

Net change in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

36.9 122.3

Other movements on cash and cash equivalents

–31.7 –15.5

Cash and cash equivalents at the end of the period

20.2 36.9

Net change in cash and cash equivalents

14.9 –69.8

1) The addition of bank overdrafts results in cash and cash equivalents as reported on the consolidated statement of ﬁnancial position.

2) Composition of other movements: EUR –27 .7m restricted cash, EUR –3.6m currency differences and EUR – 0 .4m change of consolidation scope

31EVN Annual Financial Report 20 22 / 23

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 operates in the Bulgarian, North Macedonian, Croatian, German and Albanian energy industry. EVN is also active

in the area of environmental services through subsidiaries that provide customers in twelve countries with water supply, wastewater

treatment and thermal waste utilisation 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.

The consolidated ﬁnancial statements are prepared on the basis of historical acquisition and production costs, unless indicated otherwise.

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 consolidated 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. Small amounts below TEUR 50 as well as zero

values are presented in the notes to the consolidated ﬁnancial statements with “–” to improve readability. The rounding of individual

positions and percentage rates can lead to minimal rounding differences. As far as possible, the legislative basis is presented as is.

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 IFRS 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).

Standards and interpretations applied for the ﬁrst time and changes in accounting policies

The following standards and interpretations were applied for the ﬁrst time in the 2022/23 ﬁnancial year:

Standards and interpretations applied for the ﬁrst time

Effective

Expected material effects

on EVN’s consolidated

ﬁnancial statements

Revised standards and interpretations

IFRS 3 Reference to the Conceptual Framework 01.01.2022 None

IAS 16 Proceeds before Intended Use 01.01.2022 None

IAS 37 Cost of Fulﬁlling a Contract 01.01.2022 None

Several Annual Improvements to IFRS 2018–2020 01.01.2022 None

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 ﬁrst-time mandatory application of the amended standards and interpretations has no material impact on the consolidated ﬁnancial

statements.

Consolidated notes

32EVN Annual Financial Report 2022 / 23

Standards and interpretations already adopted by the EU, but not yet compulsory

Effective

Expected material effects on

EVN’s consolidated ﬁnancial

statements

New standards and interpretations

IFRS 17 Insurance Contracts 01.01.2023 None

Revised standards and interpretations

IAS 1 Disclosure of Accounting Policies 01.01.2023 None

IAS 8 Deﬁnition of Accounting Estimates 01.01.2023 None

IAS 12 Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction 01.01.2023 None

IFRS 17 Initial Application of IFRS 17 and IFRS 9 – Comparative Information 01.01.2023 None

IAS 12 Amendments to IAS 12 Income Taxes – Pillar Two Model 01.01.2023 None

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

The IASB announced changes to IAS 12 – International Tax Reform – Pillar Two Model Rules in May 2023. The changes include a

temporary exemption from the required recording and disclosure of information on deferred tax assets and liabilities in connection

with the implementation of the Pillar Two rules.

The effects of the global minimum tax are currently the subject of analyses, and detailed statements on the concrete effects are therefore

not possible at the present time. However, we assume there will be no effect on the consolidated ﬁnancial statements. EVN regularly

monitors and evaluates developments in connection with the global minimum tax. The future application of not yet binding standards

and interpretations is also not expected to have a material effect on EVN’s consolidated ﬁnancial statements.

The following standards and interpretations had been issued by the IASB as of 30 September 2023, but have not yet been adopted

by the EU:

Standards and interpretations not yet applicable and not yet adopted by the EU

Effective

Expected material effects

on EVN’s consolidated

ﬁnancial statements

Revised standards and interpretations

IAS 1 Classiﬁcation of Liabilities as Current or Non-current 01.01.2024 None

IFRS 16 Lease Liability in a Sale and Leaseback 01.01.2024 None

IAS 7, IFRS 7 Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial

Instruments (Supplier Finance Arrangements)

01.01.2024 None

IAS 21 Accounting in case of Lack of Exchangeability of a Currency 01.01.2025 None

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

EVN regularly monitors and analyses the effects of the application of revised standards and interpretations on the future presentation of

the consolidated ﬁnancial statements and the future disclosures in the consolidated notes.

33EVN Annual Financial Report 2022 / 23

Basis of consolidation

3. Consolidation methods

Consolidation is carried out by offsetting the consideration transferred against the fair value of the acquired assets and assumed liabilities.

All signiﬁcant companies whose ﬁnancial and operating activities are directly or indirectly controlled by EVN AG (i. e. subsidiaries) are

fully consolidated. EVN is considered to have a controlling interest over a company in which it holds an investment when it has a right to

variable returns from the investee and can inﬂuence the amount of these returns through its control.

This is usually the case when EVN’s voting rights exceed 50.0%, but may also apply if EVN has the power of disposition over and is the

primary beneﬁciary of any economic beneﬁts arising from the business operations of these companies or if EVN is required to carry most

of the risks. Companies are initially consolidated on the acquisition date or at the time EVN gains control and are deconsolidated when

control ends.

In accordance with IFRS 3, assets and liabilities (including contingent liabilities) obtained through business combinations are recognised

at their full fair value, irrespective of any existing non-controlling interests. Non-controlling interests in subsidiaries are carried at the propor-

tional share of net assets (excluding the proportional share of goodwill). Intangible assets are recognised separately from goodwill if they

can be separated from the acquired company or arise from statutory, contractual or other legal rights. Any remaining positive differences

which represent compensation to the seller for market opportunities or developmental potential that cannot be individually identiﬁed are

recognised in local currency as goodwill and allocated to cash-generating units (CGUs) in the relevant segment (for information on the

treatment and recoverability of goodwill, see notes 35. Intangible assets and 22. Procedures and effects of impairment tests).

Negative differences are recognised in proﬁt or loss after a repeated measurement of the acquired company’s identiﬁable assets and liabil-

ities (including contingent liabilities) and measurement of the acquisition cost. The differences between fair value and the carrying amount

are carried forward in accordance with the related assets and liabilities during the subsequent consolidation. A change in the investment

in a fully consolidated company is accounted for directly in equity without recognition through proﬁt or loss.

Joint arrangements are included in the consolidated ﬁnancial statements of EVN depending on the rights and obligations attributed to the

controlling parties by the respective agreement. If only rights to the net assets are involved, the joint arrangement is classiﬁed as a joint

venture according to IFRS 11 and included at equity. If rights to the assets and obligations for the liabilities are involved, the joint arrangement

is classiﬁed as a joint operation according to IFRS 11 and included in the consolidated ﬁnancial statements through line-by-line consolidation .

Associates – i. e. companies in which EVN AG can directly or indirectly exercise signiﬁcant inﬂuence – are included at equity .

Subsidiaries, joint ventures and associates are not consolidated if their inﬂuence on EVN’s asset, ﬁnancial and earnings position is considered

to be immaterial, either individually or in total. These companies are reported at cost less any necessary impairment losses. The materiality

of an investment is assessed on the basis of the balance sheet total, the proportional share of equity, external revenue and annual proﬁt

or loss as reported in the last available ﬁnancial statements in relation to the respective Group totals.

Intragroup receivables, liabilities, income and expenses as well as interim proﬁts and losses are eliminated unless they are immaterial.

The consolidation procedure for proﬁt or loss includes the effects of income taxes as well as the recognition of deferred taxes if permissible.

4. Scope of consolidation

The scope of consolidation is determined in accordance with the requirements of IFRS 10. Accordingly, 26 domestic and 28 foreign sub-

sidiaries (including the parent company EVN AG) were fully consolidated in the consolidated ﬁnancial statements as of 30 September 2023

(previous year: 25 domestic and 27 foreign subsidiaries). A total of ten subsidiaries (previous year: 16) were not consolidated due to their

immaterial inﬂuence on EVN’s asset, ﬁnancial and earnings position, either individually or in total.

Consolidated notes — Basis of preparation, Basis of consolidation

34EVN Annual Financial Report 2022 / 23

The fully consolidated subsidiary EVN Energieservices GmbH (previous year: EVN AG), as the limited partner of EVN KG, participates to

100.0% in the proﬁt or loss of EVN KG. The limited partner changed in connection with intragroup reorganisations during 2022/23 (also

see the information on the initial consolidation of EVN Energieservices GmbH). EnergieAllianz serves as the general partner of EVN KG,

but does not hold an investment in this company. Based on the agreement with EnergieAllianz regarding the management of EVN KG,

there is joint control and EVN KG is therefore classiﬁed as a joint venture in the sense of IFRS 11 and consolidated at equity. Contractual

agreements also lead to the classiﬁcation of the EnergieAllianz Group (EnergieAllianz and its subsidiaries) as a joint venture in the sense of

IFRS 11; the group is therefore included in the consolidated ﬁnancial statements at equity.

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.

Bioenergie Steyr, in which EVN Wärme holds a stake of 51.0%, is included in EVN’s consolidated ﬁnancial statements at equity because

contractual agreements exclude any possibility of control.

Verbund Innkraftwerke, Germany, in which EVN AG has an unchanged interest of 13.0%, is included at equity due to special contractual

arrangements that allow for the exercise of signiﬁcant inﬂuence.

The criteria for control deﬁned by IFRS 10 are not considered to be met in companies with an investment of 50.0%. These companies

are classiﬁed as joint ventures in the sense of IFRS 11 based on the respective contractual agreements and are therefore included in the

consolidated ﬁnancial statements at equity.

An overview of the companies included in the consolidated ﬁnancial statements is provided under EVN’s investments, starting on

page 115. Notes 49. Non-controlling interests and 64. Disclosures of interests in other entities provide detailed information on

the subsidiaries with major non-controlling interests as well as joint ventures and associates that are included in the consolidated ﬁnancial

statements.

The scope of consolidation (including EVN AG as the parent company) developed as follows during the reporting year:

Changes in the scope of consolidation

Full consolidation Equity Total

30.09.2021

55 16 71

thereof foreign companies 29 6 35

Initial consolidation – – –

Deconsolidation –3 – –3

30.09.2022

52 16 68

thereof foreign companies 27 6 33

Company acquisition 1 – 1

Initial consolidation 2 1 3

Deconsolidation – –2 –2

Reorganisation

–1 – –1

30.09.2023

54 15 69

thereof foreign companies 28 5 33

1) Internal reorganisation

The 100.0% share in WTE Projektentwicklung GmbH, Maria Enzersdorf, and the 50.0% share in

EVN-ECOWIND Sonnenstrom-

erzeugungs GmbH, Maria Enzersdorf, which were previously not consolidated due to immateriality,

were included in the consolidated

ﬁnancial statements as of 1 January 2023. WTE Projekt entwicklung GmbH has been fully consolidated and EVN-ECOWIND consolidated

at equity since 1 January 2023. These two ﬁrst-time consolidations had no material effect on the consolidated ﬁnancial statements.

35EVN Annual Financial Report 2022 / 23

EVN previously held 50% of the shares in sludge2energy GmbH (s2e), Berching, Germany and included this company in the consolidated

ﬁnancial statements at equity. As of 1 January 2023, EVN acquired the remaining 50% of the shares in s2e and now holds an investment

of 100%. The company has therefore been included through full consolidation since 1 January 2023.

The focus point of business for s2e is the planning, construction and operation of plants for the treatment and utilisation of sludge and

residual materials as well as the generation of thermal and electrical energy. The company currently has a newly built thermal sewage

sludge utilisation plant in Halle-Lochau, Germany, and is constructing a thermal sewage sludge utilisation plant for a German customer.

EVN’s objective for the acquisition of s2e by the WTE Group is to expand its market position in the planning and turnkey construction of

thermal sewage sludge utilisation plants and to improve and increase the attractiveness of the product portfolio for environmental infra-

structure projects in the international project business.

The fair value of the acquired assets and liabilities as of the acquisition date on 1 January 2023 is as follows:

Acquired assets and liabilities

EURm

Fair value

01.01.2023

Intangible assets and property, plant and equipment

12.4

Other non-current assets 1.3

Current receivables and other assets

23.5

Cash and cash equivalents

1.5

Total fair value of assets 38.7

Trade payables –4.4

Current provisions –9.3

Other current liabilities –22.7

Total fair value of liabilities –36.5

Net assets 2.2

Transferred consideration 2.2

thereof previous at-equity share (50%)

1.1

thereof consideration acquired share (50%) 1.1

Difference 0.0

1) The carrying amounts of current receivables and other assets represent gross receivables and the fair value as of 1 January 2023.

The purchase price reﬂected the fair value of the acquired net assets and was paid entirely in cash. s2e recorded revenue of EUR 27.9m

and a result for the period of EUR

–5.4m from the acquisition date to 30 September 2023. If the company had been fully consolidated

from the beginning of the ﬁnancial year, it would have increased revenue by EUR 33.0m. The company generated a result before tax of

EUR 2.0m in the ﬁrst quarter of 2022/23. Because s2e reported negative equity as of 30 September 2022, the excess losses could not be

recognised to proﬁt or loss.

This transaction represents a business combination through the successive purchase of shares to attain control. The at equity carrying

amount before the business combination equalled EUR 0.0m. The next step involved a revaluation of EUR 1.1m to the existing at equity

component at fair value. The gain from this revaluation was reported on the consolidated statement of

operations under share of results

from equity accounted investees

with operational nature .

Consolidated notes — Basis of consolidation

36EVN Annual Financial Report 20 22 / 23

EVN Energieservices GmbH, Maria Enzersdorf, which was previously not consolidated by EVN due to immateriality, was initially consolidated

as of 28 February 2023. EVN AG holds all shares in this company. In connection with internal restructuring following the reorientation of

sales activities in the EVN Group, the business unit “sales and energy-related services“ of the equity accounted

EVN KG was subsequently

transferred to EVN Energieservices GmbH a

s of 28 February 2023. In the future, EVN KG will concentrate solely on electricity and natural

gas deliveries to end customers and EVN Energieservices GmbH on sales and energy-related services. The transfer of this business unit

represents an acquisition of a business as deﬁned in IFRS 3. The consideration for the transfer of the business unit equalled EUR 3.4m.

The for the ﬁrst time fully consolidated EVN Energieservices GmbH

and the acquired business unit “sales and energy-related services“ were

assigned to the Energy Segment. The identiﬁed assets and liabilities of the business unit measured at fair value as of the acquisition date

on 28 February 2023 are as follows:

Acquired assets and liabilities

EURm

Fair value

28.02.2023

Intangible assets and property, plant and equipment

9.7

Inventories 3.3

Current receivables and other assets

13.3

Total fair value of assets 26.4

Non-current provisions –1.7

Other non-current liabilities –2.3

Current loans and borrowings –0.4

Trade payables –3.2

Other current liabilities –14.0

Total fair value of liabilities –21.6

Net assets 4.7

Transferred consideration 3.4

Difference 1.3

1) The fair value of receivables and other assets represents the carrying amounts. Gross receivables, however, totalled EUR 14.7m.

The component considered uncollectible according to best estimates on the acquisition date therefore equals EUR 1.4m.

The contribution generated a negative difference of EUR 1.3m for the EVN Group on the acquisition date, which was recorded to proﬁt

or loss and is reported under other operating income. The agreed consideration of EUR 3.4m was based on the valuation of the business

unit as of 30 September 2022. The gain from the transaction resulted primarily from the actual development of the business unit during

the ﬁrst ﬁve months of the 2022/23 ﬁnancial year.

This business unit contributed revenue of EUR 20.8m and proﬁt before tax of EUR

–9.5m from the acquisition date to 30 Septem-

ber 2023. If the business unit had been included in EVN’s consolidated statements from the beginning of the ﬁnancial year, it would

have increased revenue by EUR 42.8m. As the results of EVN KG for the period are included in full under the share of results from equity

accounted investees with operational nature, there would have been no change in Group result for the period apart from the

above-mentioned initial consolidation gain.

The fully consolidated EVN Kraftwerks- und Beteiligungsgesellschaft mbH, Maria Enzersdorf, was merged with EVN Wärmekraft-

werke GmbH. The merger was recorded in the company register on 10 May 2023.

Biowärme Amstetten-West GmbH, Amstetten, which was previously consolidated at equity, was deconsolidated as of 30 June 2023 due

to immateriality. This deconsolidation had no material effect on the consolidated ﬁnancial statements .

37EVN Annual Financial Report 2022 / 23

Consolidated notes — Basis of consolidation

EVN acquired a telecommunications network from Bauer GmbH & Co KG, Loosdorf, through an asset deal as of 30 September 2023. This

network, which services the communities of Loosdorf and Pöchlarn, provides customers with cable television as well as coaxial and glass

ﬁbre internet services. The transaction covers the entire business operations together with all its constituent parts, in particular the cable

network, including all related plant components, employment relationships, the existing customer base and the processes required for

business operations. Consequently, the acquisition represents a business combination as deﬁned in IFRS 3. A purchase price of EUR 2.9m

was paid as return consideration.

The business operations were acquired by kabelplus and allocated to the Networks Segment. The transaction will expand kabelplus’

supply area and support connections with new customers. The location of the cable network between Melk and St. Pölten is considered

ideal and closes a gap for kabelplus, which already provides internet connectivity.

The fair values of the acquired assets and assumed liabilities as of the acquisition date on 30 September 2023 are as follows:

Acquired assets and liabilities

EURm

Fair value

30.09.2023

Intangible assets

1.2

Property, plant and equipment 1.9

Current receivables and other assets 0.1

Total fair value of assets

3.1

Other liabilities 0.1

Total fair value of liabilities

0.1

Net assets

3.0

Transferred consideration 2.9

Difference

0.1

The acquired assets and assumed liabilities were included by carrying forward the fair values determined as of the acquisition date.

These determined values should be seen as preliminary in accordance with IFRS 3 due to uncertainty.

In connection with the preliminary purchase price allocation under IFRS 3, the existing customer base was identiﬁed as an intangible

asset to be recognised separately. The value of the customer base was calculated by applying the residual value method based on future

earnings and expenses that could be allocated to the customer base. The fair value of the customer base equalled EUR 1.2m as of

30 September 2023 and will be amortised over a useful life of eight years.

The acquired current receivables did not include any receivables that are likely to be uncollectible. Consequently, the carrying amount

represents the fair value.

If the business operations had been acquired as of 1 October 2022, they would have increased revenue by EUR 1.1m and the result after

tax by EUR 0.3m.

The transaction led to a minor negative difference of less than EUR 0.1m, which resulted primarily from the negotiating positions of the

involved parties.

There were no other IFRS 3 business combinations in the reporting period.

38EVN Annual Financial Report 2022 / 23

5. Foreign currency translation

All Group companies record their foreign currency business transactions at the mid exchange rate in effect on the date of the relevant

transaction. Monetary assets and liabilities denominated in a foreign currency are translated at the mid exchange rate on the balance

sheet date. Any resulting foreign currency gains or losses are recognised in proﬁt or loss. The exchange rate applied to the initial recognition

of an asset, expense or income is derived from the date on which a company initially recognises the related non-monetary asset or

non-monetary liability.

In accordance with IAS 21, the annual ﬁnancial statements of Group companies that are prepared in a foreign currency are translated

into euros for inclusion in the consolidated ﬁnancial statements. This translation is based on the functional currency method, under which

the assets and liabilities of companies not reporting in euros are converted at the mid exchange rate on the balance sheet date and any

income and expenses are converted at the average annual rate. Unrealised currency translation differences from long-term Group loans

are recorded under the currency translation reserve in equity without recognition in proﬁt or loss. Currency translation differences directly

recognised in equity resulted in a change to equity of EUR –15.9m in 2022/23 (previous year: EUR 31.3m). Of this amount, EUR 0.0m

(previous year: EUR –2.1m) is attributable to transfers to the consolidated statement of operations from partial disposals (redemptions) of

net investments and is reported as exchange rate losses in the other ﬁnancial result (see note 32. Financial results).

Additions and disposals are reported at the applicable average exchange rates in all tables. Changes in the mid exchange rates between

the balance sheet date for the reporting year and the previous year as well as differences arising from the use of mid exchange rates to

translate changes during the ﬁnancial year are reported separately under currency translation differences in all tables.

Goodwill resulting from the acquisition of foreign subsidiaries is recorded at the exchange rate in effect on the acquisition date. This

goodwill is subsequently allocated to the acquired company and translated at the exchange rate in effect on the balance sheet date.

When a foreign company is deconsolidated, any related currency differences are recognised in proﬁt or loss.

The following key exchange rates were used for foreign currency translation:

Foreign currency translation

Currency

2022/23 2021/22

Exchange rate on the

balance sheet date Average

Exchange rate on the

balance sheet date Average

Albanian lek

106.68000 112.01423 116.59500 120.14423

Bulgarian lev

1.95583 1.95583 1.95583 1.95583

Bahrain dinar 0.39950 0.40042 0.36775 0.40878

Japanese yen 158.11000 148.73692 140.99500 134.31769

Croatian kuna

– 7.53476 7.52415 7.53292

Kuwaiti dinar 0.32740 0.32669 0.30215 0.33036

North Macedonian denar 61.50160 61.58384 61.49500 61.63175

Polish zloty 4.62775 4.61934 4.84870 4.66853

Russian rouble 103.18475 83.21165 59.62660 78.11961

1) Average of the exchange rates on the last day of each month

2) The exchange rate was determined by Bulgarian law.

3) Accession to the euro currency area on 1 January 2023

39EVN Annual Financial Report 20 22 / 23

Accounting policies

6. Intangible assets

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

as in the previous year, equals three to eight years for software and three to 40 years for rights. Customer relationships capitalised in

connection with a business acquisition, 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 mea s-

ured at cost and tested annually for impairment (see note 22. Procedures and effects of impairment tests).

Internally generated intangible assets must meet the requirements of IAS 38 in order to be capitalised. This standard distinguishes

between research and development expenses.

Service concessions that meet the requirements of IFRIC 12 are classiﬁed as intangible assets. Expenses and income are recognised

according to the percentage of completion method at the fair value of the compensation received. The percentage of completion is

assessed according to the cost-to-cost method. The requirements deﬁned in IFRIC 12 are currently met by the Ashta hydropower plant as

well as the sewage treatment plant project in Zagreb, both of which are included at equity.

7. Property, plant and equipment

Property, plant and equipment are carried at acquisition or production cost less scheduled straight-line depreciation and any necessary

impairment losses. The acquisition or production cost also includes the estimated expenses for demolition and disposal if there is an obli-

gation 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.

Ongoing maintenance and repairs to property, plant and equipment are recognised in proﬁt or loss, 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 capitalised retroactively as part of the acquisition or production cost.

If the construction of property, plant and equipment continues over an extended period of time, these items 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. Interest on borrowed capital is not capitalised if the amounts are insigniﬁcant over the entire construction phase .

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.

Consolidated notes — Basis of consolidation, Accounting policies

40EVN Annual Financial Report 2022 / 23

As in the previous year, straight-line depreciation is based on the following useful lives, which are uniform throughout the Group:

Expected useful life of property, plant and equipment Years

Buildings

10 – 50

Transmission lines and pipelines 15 – 50

Machinery 10 – 50

Meters 5 – 40

Tools and equipment 3 – 25

When property, plant and equipment are sold, the acquisition or production cost and accumulated depreciation are reported as a disposal.

The difference between the net proceeds from the sale and the carrying amount are recognised in other operating income or expenses.

Some leases include extension and cancellation options which are used by EVN to achieve maximum operating ﬂexibility in the assets used

by the Group. The determination of the contract term includes all facts and circumstances which could represent an economic incentive

for the exercise of an extension option or the non-exercise of a cancellation option.

EVN evaluates at the beginning of the contract term whether a contract establishes a lease. If a lease is involved, a right of use and

corresponding lease liability are recognised. The amount of the right of use represents the amount of the lease liability on the contract‘s

initial recognition date, with an adjustment for any initial direct costs incurred by the lessee, payments at or before the beginning of the

lease relationship, lease incentives and/or dismantling obligations. The carrying amount of the lease liability is determined by discounting

the payments expected during the lease, the expected payments from issued residual value guarantees, the exercise prices for purchase

options (if their exercise is sufficiently probable) and any payments for premature cancellation of the contract (if probable).

8. Investments in equity accounted investees

Investments in equity accounted investees are initially recognised at cost. In subsequent periods, the carrying amounts of these invest-

ments are adjusted by the share of proﬁt or loss attributable to EVN, less any dividends received, and by EVN’s share of other comprehen-

sive income and any other changes in equity. Investments accounted for according to the equity method are tested for impairment in

accordance with IAS 36 if there are any indications of a loss in value (see note 22. Procedures and effects of impairment tests).

The share of results from equity accounted investees with operational nature is reported as part of results from operating activities (EBIT).

The share of results from equity accounted investees with ﬁnancial nature is reported as part of ﬁnancial results (see notes 30. Share of

results from equity accounted investees with operational nature, 32. Financial results and 64. Disclosures of interests in

other entities).

9. Financial instruments

A ﬁnancial instrument is a contract that gives rise to a ﬁnancial asset in one company and a ﬁnancial liability or an equity instrument in

another company.

Primary financial instruments

Primary ﬁnancial instruments are measured in accordance with the rules deﬁned by IFRS 9. Initial recognition is based on fair value as of

the settlement date, including transaction costs, unless the ﬁnancial instruments are recognised at fair value through proﬁt or loss.

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 .

41EVN Annual Financial Report 2022 / 23

Following the initial application of IFRS 9, EVN has classiﬁed its ﬁnancial assets under the following measurement categories since

1 October 2018:

• Fair value through other comprehensive income (FVOCI)

• Fair value through proﬁt or loss (FVTPL)

• At amortised cost (AC)

The classiﬁcation of ﬁnancial assets on initial recognition is based on the business model and the characteristics of the contractual cash ﬂows.

A ﬁnancial asset is classiﬁed at amortised cost (AC) when it is held to collect contractual cash ﬂows and these cash ﬂows consist entirely

of interest and principal payments on the outstanding amount. EVN holds loans receivable, trade receivables, remaining other non-

current assets, cash on hand and cash at banks within the framework of a business model whose objective is to collect contractual cash

ﬂows. Consequently, the cash ﬂow criterion is also met and the ﬁnancial assets are classiﬁed at amortised cost (AC).

The non-current and current securities held by EVN are held within a business model whose objective is neither to collect contractual cash

ﬂows nor to collect contractual cash ﬂows and to sell ﬁnancial assets. These securities are classiﬁed at fair value through proﬁt or loss

(FVTPL). Derivative ﬁnancial assets (outside hedge accounting) must be classiﬁed at fair value through proﬁt or loss (FVTPL) (see Deriva tive

ﬁnancial instruments) .

Investments in equity instruments are generally measured at fair value through proﬁt or loss (FVTPL). However, EVN decided, at the time

IFRS 9 was initially applied, to exercise the “FVOCI option” provided by IFRS 9.5.7.5 and classify all its equity instruments irrevocably at fair

value through other comprehensive income (FVOCI).

Financial liabilities are still classiﬁed under the following measurement categories:

• Fair value through proﬁt or loss (FVTPL)

• At amortised cost (AC)

Subsequent measurement is based on the classiﬁcation to the measurement categories listed above 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.

The introduction of IFRS 9 led to the application at the time of initial recognition of the expected credit loss model (ECL) to debt instru-

ments carried at amortised cost, debt instruments measured at FVOCI, lease receivables and contractual assets as deﬁned in IFRS 15.

Under the ECL model, impairment losses are not only recognised for losses which have already occurred but also for expected future credit

losses. The related classiﬁcation is based on a three-stage impairment model. When a ﬁnancial asset is initially recognised, a loss allowance

must be determined for the credit losses expected to occur within one year (risk category 1). Any signiﬁcant deterioration in the debtor’s

credit standing leads to the extension of this timeframe to the full term of the ﬁnancial asset (risk category 2). An impaired credit standing

or actual default by the debtor results in reclassiﬁcation to risk category 3. The criteria for the transfer between risk categories are based

on EVN’s internal rating system .

EVN determines the expected future credit loss by multiplying the “probability of default (PoD)” with the carrying amount of the ﬁnancial

asset “exposure at default (EAD)” and the actual loss resulting from customer default “loss given default (LGD)” .

Consolidated notes — Accounting policies

42EVN Annual Financial Report 2022 / 23

I n contrast to the above-mentioned ECL model, the simpliﬁed approach does not include the measurement of the twelve-month expected

credit loss but only the lifetime expected credit loss. A simpliﬁed approach must be applied to trade receivables and IFRS 15 contractual

assets without a signiﬁcant ﬁnancing component. An option is also available to apply the simpliﬁed approach to trade receivables and IFRS 15

contractual assets with a signiﬁcant ﬁnancing component. EVN uses this option. The option to apply the simpliﬁed approach in accordance

with IFRS 16 to lease receivables is not applied.

EVN uses the practical expedient deﬁned by IFRS 9.B5.5.35 for trade receivables and measures the expected credit loss with a provision

matrix (also see note 13. Trade and other receivables).

Derivative financial instruments

The main instruments used by EVN to manage and limit existing exchange rate and interest rate risks in the ﬁnancial sector are foreign

currency and interest rate swaps. EVN uses swaps, futures and forwards to limit energy sector risks arising from changes in commodity

and product prices.

The forward and futures contracts concluded by EVN for the purchase or sale of electricity, natural gas, coal and CO

emission certiﬁcates

serve to hedge the purchase prices for expected electricity and natural gas deliveries or CO

emission certiﬁcates as well as the selling

prices for planned electricity production. If physical delivery is based on the expected procurement, sale or usage requirements, the criteria

for the so-called “own use exemption” are met. The contracts are then not considered derivative ﬁnancial instruments in terms of IFRS 9,

but represent pending purchase and sale transactions, which must be assessed for possible impending losses from pending transactions

in accordance with IAS 37. If the requirements for the own use exemption are not met – for example, by transactions for short-term opti-

misation – the contracts are recorded as derivatives in accordance with IFRS 9. Corresponding expenses and income from such derivative

ﬁnancial instruments are reported under results from operating activities.

Derivative ﬁnancial instruments are recognised at fair value, which generally reﬂects the acquisition cost, when the respective contract is

concluded and measured at fair value in subsequent periods. The fair value of derivative ﬁnancial instruments is determined on the basis

of quoted market prices, information provided by banks or discounting-based valuation methods whereby the counterparty risk is also

included. Positive fair values are recorded as receivables from derivative transactions (under other non-current assets or under current

receivables and other assets, depending on the term). In contrast, negative fair values are recorded as liabilities from derivative trans-

actions (under other non-current liabilities or under other current liabilities, depending on the term). For counterparties with a master

agreement that includes a so-called netting clause, the positive and negative fair values are presented as net amounts for the respective

time periods when net settlement is planned (see note 63. Reporting on financial instruments).

EVN has designated signiﬁcant parts of the listed derivatives as hedges within the framework of hedge accounting. The requirements

deﬁned by IFRS 9 for this designation include an approved underlying transaction or hedging instrument, the formal designation and

documentation of the hedge relationship, an economic relationship between the underlying transaction and the hedge as well as an

appropriately documented hedging strategy.

Cash ﬂow hedges are used to hedge the interest rate risks arising from ﬁnancial liabilities and foreign exchange risks and to hedge the

price risk from planned future electricity sales. At the beginning of the designated hedge relationship, the Group documents the risk

management goals and strategies to be followed with regard to the hedge. The Group also documents the economic relationship

between the underlying transaction and the hedging instrument as well as expectations as to whether the changes in the cash ﬂows

from the underlying transaction and the hedging instrument are expected to offset each other .

43EVN Annual Financial Report 2022 / 23

When a derivative is designated as a cash ﬂow hedge, the effective portion of the changes in fair value are recognised under other com-

prehensive income and accumulated in the hedging reserve. The effective portion of the changes in fair value, which is recorded under

other comprehensive income, is limited to the cumulative change in the fair value of the underlying transaction (based on present value)

since the beginning of the hedge. Any ineffective parts of the changes in the fair value of the derivative are recognised immediately to

proﬁt or loss .

If an expected hedged transaction subsequently leads to the recognition of a non-ﬁnancial item, e. g. inventories, the accumulated

amount from the hedging reserve and the reserve for hedging costs is included in the acquisition cost of the non-ﬁnancial item, if it is

recognised.

For all other expected hedged transactions, the accumulated amount in the hedging reserve and the reserve for hedging costs is reclassi-

ﬁed to proﬁt or loss of the period or periods in which the expected future hedged cash ﬂows inﬂuence proﬁt or loss. If a hedge no longer

meets the criteria for hedge accounting or if the hedging instrument is sold, expires, is terminated or exercised, hedge accounting is ter-

minated prospectively. A so-called “rebalancing” is generally carried out when the framework conditions change, and the hedge is only

terminated when this is not possible. When cash ﬂow hedge accounting is terminated, the amount in the hedging reserve remains in equity

until it is included in the acquisition cost of a non-ﬁnancial item on initial recognition (for hedging transactions that lead to the recognition

of a non-ﬁnancial item) or until it is reclassiﬁed to proﬁt or loss of the period or periods in which the expected hedged future cash ﬂows

inﬂuence proﬁt or loss (for other cash ﬂow hedges).

If the hedged future cash ﬂows are no longer expected to occur, the amounts in the hedging reserve and the reserve for hedging costs

are reclassiﬁed immediately to proﬁt or loss.

The accounting treatment of the changes in the fair value of derivatives used for hedging purposes depends on the type of the hedging

transaction.

Fair value hedges are used to hedge currency risks (also see notes 61. Risk managment and 63. Reporting on financial instruments).

Derivative ﬁnancial instruments classiﬁed as fair value hedges under IFRS 9 serve to hedge recognised assets or liabilities against the risk

of a change in fair value. For fair value hedges, the recognition in proﬁt or loss includes the change in the fair value of the derivative as

well as the contrasting change in the fair value of the underlying transaction, as far as it reﬂects the hedged risk. The related earnings are

generally reported under the same position in the consolidated statement of operations as the underlying transaction. Changes in the

value of the hedges are essentially offset by the changes in the value of the hedged transactions.

The derivatives used by EVN for hedging purposes constitute effective protection. The changes in the fair value of these derivatives are

generally offset by compensating changes in the underlying transactions.

10. Other investments

Other investments include, in addition to other investments, shares in associated companies which are not included in the consolidated

ﬁnancial statements due to immateriality. These shares are recorded at cost less any necessary impairment losses. The other investments

were classiﬁed irrevocably at fair value through other comprehensive income (“FVOCI option”) in accordance with IFRS 9.5.7.5 following

the introduction of IFRS 9. The fair value of these investments is based on available information and derived from market quotations, dis-

counted cash ﬂow calculations or the multiplier method. The measurement and deconsolidation results from these equity instruments are

recorded under other comprehensive income. Dividends received are still reported on the consolidated statement of operations under

income from investments, despite the use of this option (also see note 32. Financial results).

Consolidated notes — Accounting policies

44EVN Annual Financial Report 2022 / 23

11. Other non-current assets

Securities recorded under other non-current assets are initially recognised as FVTPL. These assets are recorded at fair value as of the

acquisition date and subsequently measured at fair value as of the balance sheet date. Changes in fair value are recognised in the

consolidated statement of operations.

Loans receivable are classiﬁed as AC, whereby the carrying amount on the acquisition date corresponds to the fair value. These loans are

subsequently measured at amortised cost in keeping with the effective interest rate method and also reﬂect any necessary impairment

losses.

Lease receivables arise from the international project business in the Environment Segment. They are classiﬁed as ﬁnance leases according

to IFRS 16.

Receivables arising from derivative transactions are recognised as FVTPL. Gains and losses arising from changes in the fair value of

derivative ﬁnancial instruments are either recognised in proﬁt or loss in the consolidated statement of operations or in other comprehen-

sive income (see note 9. Financial instruments).

The measurement of the remaining non-current assets is based on acquisition or production cost or the lower net realisable value on the

balance sheet date.

Costs incurred for obtaining a contract are capitalised as an asset when EVN assumes these costs can be recovered. The capitalised costs

are amortised on a systematic basis depending on how the goods or services are transferred to the customer.

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. 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 inventories of natural gas held by EVN for trading purposes are measured through proﬁt or loss in the consolidated statement of

operations. In accordance with the dealer-broker exception for raw material and commodities traders, measurement is based on fair value

less costs to sell. This represents the market price for day-ahead deliveries on the Central European Gas Hub (CEGH).

13. Trade and other receivables

Current receivables are generally recorded at amortised cost, which equals the acquisition cost less impairment losses for the components

of the receivables that are expected to be uncollectible. EVN applies the practical expedient provided by IFRS 9.B5.5.35 to trade receiv-

ables and determines the expected credit loss with a provision matrix. The input factors for the matrix include analyses of default incidents

in previous ﬁnancial years based on different regional characteristics for the core markets. The expected credit losses determined by the

matrix are ranked by the time (over)due based on historical default rates and subsequently written off through proﬁt or loss. The compiled

information is reviewed annually, and the default rates are adjusted if necessary. All other receivables are accounted for in accordance with

the ECL model (also see note 9. Financial instruments).

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.

45EVN Annual Financial Report 20 22 / 23

Exceptions to the above procedure are receivables arising from derivative transactions which are recognised at fair value, and foreign

currency items, which are measured at the exchange rates in effect on the balance sheet date.

Contract assets consist primarily of the Group’s claims to consideration for performance on contract orders from the project business,

in cases where the performance was completed but not yet invoiced as of the balance sheet date. Contract assets are reclassiﬁed to

receivables when the rights become unconditional. This generally occurs when the Group issues an invoice to the customer.

14. Securities

Current securities, which consist mainly of investment certiﬁcates, are classiﬁed as FVTPL and measured at their fair value. Changes in fair

value are recognised in the consolidated statement of operations.

15. Cash and cash equivalents

Cash and cash equivalents include cash on hand and demand deposits. Cash balances in foreign currencies are translated at the

exchange rate in effect on the balance sheet date.

In accordance with internal Group guidelines, EVN invests cash and cash equivalents only with reputable ﬁnancial institutions with good

ratings. In this respect, it is assumed that cash and cash equivalents based on the external rating of banks and ﬁnancial institutions have a

low risk of default.

16. Assets and liabilities held for sale

Non-current assets as well as disposal groups that contain assets and liabilities are classiﬁed as held for sale when their sale is highly likely.

These assets and disposal groups are generally carried at the lower of their respective carrying amount and fair value less disposal costs.

Any necessary recognition of an impairment loss to a disposal group is initially allocated to goodwill and, thereafter, to the remaining

assets and liabilities on a proportional basis. Impairment losses resulting from the initial classiﬁcation as held for sale as well as later gains

and losses on revaluation are recognised to proﬁt or loss.

Intangible assets and property, plant and equipment are no longer amortised, respectively depreciated once they have been classiﬁed as

held for sale.

17. Equity

In contrast to borrowings, equity is deﬁned by the IFRS framework as the “residual interest in the assets of an entity after deducting all of

its liabilities”. Equity is thus the residual value of a company’s assets and liabilities.

Treasury shares held by EVN are not recognised as securities pursuant to IAS 32, but are instead reported at their (repurchase) acquisition

cost and offset against equity. Any proﬁt or loss resulting from the resale of treasury shares relative to the acquisition cost increases or

decreases capital reserves.

The items recorded under other comprehensive income include certain changes in equity that are not recognised through proﬁt or loss as

well as the related deferred taxes. For example, this position contains the currency translation reserve, valuation results from equity instru-

ments (FVOCI), the effective portion of changes in the fair value of cash ﬂow hedges as well as all remeasurements according to IAS 19.

This item also includes the proportional share of gains and losses recognised directly in equity accounted investees .

Consolidated notes — Accounting policies

46EVN Annual Financial Report 2022 / 23

18. Provisions

Personnel provisions

The projected unit credit method is used to determine the provisions for pensions and similar obligations as well as severance payments.

The expected pension payments are distributed according to the number of years of service by employees until retirement, taking expected

future increases in salaries and pensions into account.

The amounts of the provisions are determined by an actuary as of each balance sheet date based on an expert opinion. The measurement

principles are described in note 52. Non-current provisions. All remeasurements – at EVN, only gains and losses from changes in

actuarial assumptions – are recognised under other comprehensive income in accordance with IAS 19.

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 maturities of the beneﬁts were 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.

Provisions for pensions and pension-related obligations

The calculation of the provisions for pensions, as in the previous year, was based on the Austrian mortality tables “AVÖ 2018-P – Rechnungs-

grundlagen für die Pensionsversicherung”, which were issued by the Actuarial Association Austria (AVÖ) on 15 August 2018.

Under the terms of a company agreement, EVN AG is required to pay a supplementary pension on retirement to employees who joined

the company prior to 31 December 1989. This commitment also applies to employees who, within the context of the legal unbundling

agreement for the spin-off of the electricity and natural gas networks, are now employed by Netz Niederösterreich. The amount of this

supplementary pension is based on performance as well as on the length of service and the amount of remuneration at retirement. EVN,

in any case, and the employees, as a rule, also make contributions to the umbrella pension fund VBV Pensionskasse AG (VBV) and the

resulting claims are fully credited toward pension payments. Therefore, EVN’s obligations toward both retired employees and prospective

beneﬁciaries are covered in part by provisions for pensions as well as by deﬁned contribution payments on the part of VBV.

For employees who joined the company after 1 January 1990, the supplementary company pension was replaced by a deﬁned contribution

plan that is ﬁnanced through VBV. VBV is responsible for the investment of the pension plan assets. Pension commitments were also made

to certain employees, which require EVN to pay retirement beneﬁts under certain conditions.

Provisions for pension-related obligations were recognised for liabilities arising from the vested claims of current employees and the

current claims of retired personnel and their dependents to receive beneﬁts in kind in the form of electricity and natural gas.

Provision for severance payments

Austrian corporations are required by law to make one-off severance payments to employees whose employment began before

1 January 2003 if they are dismissed, in case of dissolution of the employment relationship by mutual consent or when they reach

the legal retirement age. The amount of such payments is based on the number of years of service and the amount of the respective

employee’s remuneration at the time the severance payment is made.

Employees in Bulgaria and North 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 .

47EVN Annual Financial Report 2022 / 23

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.

Risk-free interest rates are used for the discount rates. If the risks and uncertainties in cash ﬂows cannot be taken into consideration

adequately, an adapted discount rate is used.

The provisions for service anniversary bonuses required by collective wage and company agreements are measured using the same para-

meters as the provisions for pensions and similar obligations. A new regulation in the collective agreement for salaried employees of

Austrian utility companies entitles salaried employees whose employment relationship began after 31 December 2009 to a service anni-

versary bonus equalling one month’s salary after 15, 20, 25, 30 and 35 years and to one-half month’s salary after 40 years. This was taken

into account accordingly. All remeasurements – at EVN, only gains and losses from changes in actuarial assumptions – involving service

anniversary bonuses are recognised through proﬁt or loss in accordance with IAS 19. 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 resulting from 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. The

related depreciation is corrected in accordance with the residual carrying amount and depreciated over the remaining useful life. If the

asset has reached the end of its useful life, all subsequent changes to the provisions are recognised in 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.

19. 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 of over one year are classiﬁed as non-

current and items with a remaining term to maturity of less than one year are reported under current loans and borrowings (for informa-

tion on maturities see note 50. Non-current loans and borrowings).

If the fulﬁlment of a liability is expected within twelve months after the balance sheet date, the liability is classiﬁed as current . Network

subsidies – which constitute payments made by customers to cover previous investments by EVN in the upstream network – represent an

offset to the acquisition cost of these assets. In the electricity and natural gas network business, they are related to supply obligations by

EVN. The granting of investment subsidies generally requires an operational management structure that complies with legal requirements

and has been approved by the authorities.

Consolidated notes — Accounting policies

48EVN Annual Financial Report 2022 / 23

Network and investment subsidies represent an offset to the acquisition or production cost of the related asset and, in accordance with

the application of IAS 20 and IFRS 15, are recognised as liabilities. Network and investment subsidies are released on a straight-line basis

over the average useful life of the respective assets. The release of network subsidies from the regulated business is reported under other

operating income, while comparable items from the non-regulated business are reported under revenue (also see notes 2. Reporting

in accordance with IFRS and 20. Revenue recognition).

A contract liability must be reported when consideration (e. g. a prepayment) has been transferred by the customer and the company has

not yet provided goods or services. In the EVN Group, this generally takes place in connection with prepayments from the international

project business .

20. Revenue recognition

IFRS 15 provides a ﬁve-step model for the recognition and measurement of revenue from contracts with customers. Under this model,

revenue from contracts with customers is recognised when control over a good or service is transferred to the customer. A determination

must therefore be made when a contract is concluded as to whether the resulting revenue should be recognised at a speciﬁc point in

time or over time.

Revenue in the EVN Group results primarily from the sale (energy deliveries) and distribution (network utilisation/network services) of

electricity, natural gas, heat and water to industrial, household and commercial customers. The EVN Group also generates revenue from

waste utilisation, telecommunications and the international project business. The provision of goods and services by the EVN Group

generally takes place over a speciﬁc time period, and revenue is therefore recognised over time.

The major services are described below:

Energy deliveries

Revenue results primarily from the transfer of electricity, natural gas, heat and water. Since the customer uses these services as they are

provided, revenue is recognised over time. Revenue is recognised at an amount that reﬂects the services provided and entitled to be

invoiced by EVN. In particular for household customers who only receive one invoice per year, the variable consideration is determined

by extrapolating the energy consumption based on usage proﬁles and current temperature trends. The payment terms for energy deliveries

generally represent 14 days. There is no signiﬁcant ﬁnancing component.

Network utilisation and services

EVN supplies electricity, natural gas, heat and water to its customers within the framework of network usage. The related performance

obligation lies, above all, in the continuous provision and availability of energy through the network infrastructure. Revenue from these

services is also recognised over time and when the services are provided, as described above. The payment terms for network usage

generally represent 14 days. There is no signiﬁcant ﬁnancing component.

Network subsidies constitute payments made by customers to cover previous investments by EVN in the upstream network, to the extent

they represent compensation for granting usage or purchase rights. Network subsidies in the regulated electricity and natural gas business,

where the regulator determines the amount and underlying reason, are recognised as liabilities in accordance with IAS 20 and reported,

as in the past, under other operating income as income from the reversal of deferred income from network subsidies. The network subsidies

for all other areas are recorded as non-refundable advance payments (liabilities) in accordance with IFRS 15 and have been released to

proﬁt or loss under other revenue since 2018/19 (also see note 2. Reporting in accordance with IFRS).

49EVN Annual Financial Report 2022 / 23

International project business

Revenue from the international project business is also recognised in accordance with the percentage of completion method as deﬁned

by IFRS 15. Projects are characterised by individual contract conditions with ﬁxed prices and payments which follow a ﬁxed schedule.

If the construction services provided exceed the amount of the payment, a contract asset is recognised. If the payments are higher than

the construction services provided, a contract liability is recorded. The percentage of completion is determined by the cost-to-cost method,

which calls for the recognition of revenue and contract results in relation to actually incurred production costs as a per cent of the expect ed

total costs. Reliable estimates of the total costs for the contracts, selling prices and incurred costs are available. Any changes in the esti-

mated total contract costs and possible resulting losses are recognised in proﬁt or loss in the period incurred. The technological and ﬁnancial

risks which could occur during the remaining term of a project are included through individual estimates and an appropriate amount is

added to the expected total costs. Impending losses from the valuation of projects not yet invoiced are expensed immediately. These losses

are realised when it is probable that the total contract costs will exceed the contract revenue. In the case that customers terminate the

contract for reasons other than the non-fulﬁlment of the service promised by the company, EVN has a legal claim that at least the expenses

incurred plus the lost proﬁt margin will be reimbursed.

Other

EVN also generates revenue from telecommunications, waste utilisation and energy services. Most of the related contracts include

services which are consumed by the customer as they are provided, and this revenue is also recognised over time. Revenue from waste

utilisation is recognised at a point in time.

Interest income is recorded pro rata temporis using the effective interest rate applicable to the particular asset. Dividends are recognised

when a legal entitlement to payment arises.

The costs for obtaining contracts are expensed as incurred if the amortisation period for the related asset equals one year or less. Signiﬁ-

cant ﬁnancing components are not included when the period between the transfer to the customer of the promised good or service and

payment by the customer is less than one year.

Significant judgments related to revenue recognition

Consumption-based fees for energy deliveries and network utilisation represent variable consideration, which is determined according

to the expected value method deﬁned by IFRS 15.53a. Meter-reading dates are spread over the entire year, especially for household

customers with rolling invoices. The volumes of energy consumed during the period between the last meter-reading and the balance

sheet date must be extrapolated with statistical methods and therefore estimated. The procedure used by EVN assigns each customer

to a standard consumption proﬁle in the form of an annual consumption curve for electricity and/or natural gas and extrapolates each

customer individually.

In the international project business, the percentage of completion is decisive for the recognition of revenue. Progress on the respective

projects is determined by an input-based method (cost-to-cost method). This method requires numerous estimates and judgmental

decisions, above all for the identiﬁcation of incurred costs, total contract costs and realisable contract revenue as well as the related con-

tract risks (technical, political and ﬁnancial risks). These estimates are reviewed regularly and adjusted if necessary.

21. Income taxes and deferred taxes

The income tax expense reported in the consolidated statement of operations comprises the current income tax expense for fully consoli-

dated 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.

Consolidated notes — Accounting policies

50EVN Annual Financial Report 20 22 / 23

The following income tax rates were applied in calculating current income taxes:

Corporate income tax rates

% 2022/23 2021/22

Country of residence

Austria 24.0 25.0

Albania 15.0 15.0

Bulgaria 10.0 10.0

Germany

31.2 – 32.6 31.2 – 32.6

Croatia 18.0 18.0

Kuwait 15.0 15.0

Lithuania 15.0 15.0

North Macedonia 10.0 10.0

Montenegro 9.0 9.0

Poland 19.0 19.0

Romania 16.0 16.0

Russia 20.0 20.0

Slovenia 19.0 19.0

Czech Republic 19.0 19.0

Cyprus 12.5 12.5

1) The tax rate varies slightly depending on the applicable assessment rate for trade tax.

EVN utilised the corporate tax group option as of 30 September 2023. EVN AG is a member of a participation entity with NÖ Landes-

Beteiligungsholding GmbH as the majority participating company and Wiener Stadtwerke GmbH as the minority participating company.

A group and tax settlement contract was concluded for this purpose. EVN also has the right to designate other corporate entities as

members of this tax group.

The taxable proﬁt of the companies belonging to this group is attributable to EVN AG, which calculates combined results based on the

attributed taxable proﬁt. The contract calls for the payment of a positive tax charge, when the aggregated results are positive. As in the

previous year, the positive aggregated tax result is based on the allocation method. If the aggregated results are negative, the tax losses

are kept on record and offset against future positive results. The related disclosures are reported under income taxes. The transfer of

losses from foreign subsidiaries within group taxation leads to the recognition of a liability equal to the nominal amount of the future

corporate income tax obligation.

As an offset for the transferred taxable results, the tax group contracts include a tax charge that is based on the stand-alone method.

Transferred tax losses are kept on record as internal loss carryforwards for the respective tax group members and offset against future

positive earnings. An exception to this procedure is the contract concluded with Burgenland Holding, which calls for a negative tax

charge for this company if its taxable results are negative and the group’s total results are positive. In other cases, the loss is recorded as

an internal loss carryforward and refunded in later years in the form of a negative tax charge as soon as it is covered by positive earnings.

Future changes in the tax rate are taken into account if the relevant law has been enacted by the time the consolidated ﬁnancial state-

ments are prepared. The eco-social tax reform adopted in the 2021/22 ﬁnancial year, which will reduce the corporate income tax rate by

one percentage point to 23% from 2024, is therefore taken into account in the measurement of deferred taxes. These changes were

reﬂected in the valuation of deferred taxes. Deferred taxes are calculated according to the liability method at the tax rate expected when

short-term differences are reversed. Deferred tax assets and deferred tax liabilities are calculated and recognised for all temporary

differences (i. e. the difference between the carrying amounts in the consolidated ﬁnancial statements and the annual ﬁnancial statements

prepared for tax purposes that will balance out in the future).

51EVN Annual Financial Report 2022 / 23

Deferred tax assets are recognised only if it is probable that there will be sufficient taxable income or taxable temporary differences to

utilise these items. Tax loss carryforwards are recognised as deferred tax assets. Deferred tax assets and deferred tax liabilities are presented

as a net amount in the consolidated ﬁnancial statements if there is a legal right and intention to offset these items .

22. Procedures and effects of impairment tests

EVN carries out its impairment tests in accordance with the rules deﬁned by IAS 36. Property, plant and equipment and intangible assets,

including goodwill, are tested for impairment when there are internal or external indications of a loss in value. Intangible assets with an

indeﬁnite useful life and goodwill are tested at least once each year for signs of impairment.

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 decisive criterion used by EVN to classify a generation unit as a CGU is the technical and com-

mercial ability to generate independent revenue. In the EVN Group, this deﬁnition applies to the electricity and heat generation plants,

electricity, natural gas and water distribution systems, electricity procurement rights, telecommunications networks and facilities in the

environmental services business.

The value in use is calculated in accordance with the requirements of IAS 36. Due to the long-term nature of investments in infra structure

assets, EVN uses cash ﬂow projections that correspond to the economic useful life of the respective assets. Impairment tests for hydro-

power plants are generally based on the assumption that the concession will be reissued and therefore that the respective sites will exist

indeﬁnitely. After a detailed planning period of seven years (previous year: four years), a rough planning period follows for infrastructure

facilities/long-term projects until the end of the economic useful life, albeit limited to the period in which external electricity price forecasts

are available (currently 2050). As the period of the medium-term planning calculations approved by management was aligned with the

Strategy 2030 in the 2022/23 ﬁnancial year, the detailed planning period was also adjusted to seven years.

The fair value less costs of disposal is basically calculated in accordance with the fair value measurement hierarchy deﬁned in IFRS 13.

Since it is generally not possible to derive market values for the CGUs and assets of EVN under evaluation, the fair value is estimated in

accordance with Level 3 in the fair value hierarchy. The fair value less costs of disposal for a CGU is calculated with a WACC-based

discounted cash ﬂow method, which is conceptually similar to the value in use procedure, but includes adjustments to the parameters

in the DCF model to reﬂect a market participant’s viewpoint.

The calculation of the fair value less disposal costs and the value in use is based on the future cash inﬂows and outﬂows which are basically

derived from internal medium-term forecasts. The cash ﬂow forecasts are based on the latest ﬁnancial plans approved by management.

The underlying assumptions also take climate-related effects into consideration. The assumptions for the future development of electri city

prices are derived from the quotations on the futures market of the European Energy Exchange AG, Leipzig, Germany. For the period

extending beyond this time, an average is developed from the forecasts issued by two well-known information service providers in the

energy sector. Several scenarios are used for averaging. In this way, the risks that may inﬂuence electricity prices in the future are taken

into account comprehensively.

A weighted average cost of capital which includes the deduction of income tax (WACC) is used as the discount rate. The equity component

of the WACC reﬂects the risk-free interest rate, a country-speciﬁc premium plus a risk premium that incorporates the market risk premium

and an appropriate beta coefficient based on peer group capital market indicators. The debt component of the WACC equals the basis inter-

est rate plus a country-speciﬁc premium and a rating dependent risk premium. The equity and debt components are weighted according

to a capital structure that is appropriate for the CGU based on peer group data at market values. The resulting WACC is used to discount

the cash ﬂows in the respective CGU.

For the purpose of estimating the recoverable amount, EVN initially assesses the value in use. In cases where this amount is lower than

the carrying amount of the asset, or the CGU, the fair value less costs of disposal is calculated if necessary.

Consolidated notes — Accounting policies

52EVN Annual Financial Report 2022 / 23

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.

In particular, the following assumptions and estimates can lead to signiﬁcant adjustments in the carrying amounts of individual assets and

liabilities in future reporting periods.

I n the international project business, changes in estimates for the progress on major projects can have a material effect. These estimates

are particularly relevant for the large-scale project in Kuwait (construction of a wastewater treatment plant and corresponding sewage

network) and the large-scale project in Bahrain (expansion of an existing wastewater treatment plant and contruction of a sewage sludge

utilisation plant). Revenue is recognised in accordance with the percentage of completion method (see notes 20. Revenue recognition

and 25. Revenue).

Impairment tests require estimates, especially for future cash surpluses. A change in the general economic, industry or company environ-

ment may reduce cash surpluses and therefore lead to signs of impairment. The weighted average cost of capital (WACC) is used to

determine the recoverable amounts based on capital market methods. The WACC represents the weighted average interest paid by a

company for equity and debt. The weighting applied to the interest on the equity and debt components – which reﬂects a capital

structure at market values – was derived from an appropriate peer group. Given the current volatility on the ﬁnancial markets, the devel-

opment of the cost of capital (and above all the country risk premiums) is monitored on a regular basis (see note 22. Procedures and

effects of impairment tests).

For the valuation of the generation portfolio, the price structure beginning with the ﬁfth year (when predictable market prices are no

longer available on the electricity exchanges) was based on average forecasts from two well-known market research institutes and infor-

mation service providers in the energy sector. The most recent studies, which are updated annually due to the current volatility on the

electricity markets, were used in each case. The following notes show the sensitivity of these assumptions for the largest CGUs, based on

the carrying amount, where a triggering event was identiﬁed and for which an impairment loss or reversal was recognised in the ﬁnancial

statements: 35. Intangible assets, 36. Property, plant and equipment and 37. Investments in equity accounted investees.

The most important premises and judgmental decisions used to determine the scope of consolidation are described under notes

4. Scope of consolidation and 38. Other investments.

WTE constructed a wastewater treatment plant in Budva, Republic of Montenegro, with a contract value of EUR 58.5m. The customer,

the municipality of Budva, subsequently failed to meet its payment obligations to WTE. Following the issue of reminders and an extension

period, WTE cancelled the investment contract in May 2018 but operations were temporarily continued as a goodwill gesture by WTE. All

efforts by WTE to reach an agreement on the outstanding payments failed due to a lack of cooperation by the municipality of Budva; in

particular, the joint commission installed for this purpose was unable to deliver any results due to a lack of cooperation by the municipality

of Budva. In December 2019, WTE therefore called the guarantee issued by the Republic of Montenegro (EUR 29.3m) and the municipality

of Budva (EUR 64.6m). The Republic of Montenegro met its payment obligation, but the municipality of Budva refused to make payment.

WTE terminated its operation of the plant at the end of January 2020 after multiple notiﬁcations and transferred these operations to the

municipality of Budva. WTE ﬁled an arbitration action in Frankfurt against the municipality of Budva for failure to honour the guarantee;

the value in dispute equalled EUR 37.9m, including interest. The court of arbitration issued a decision in favour of WTE at the beginning of

October 2023. The municipality of Budva must therefore honour the guarantee provided to WTE. Moreover, WTE ﬁled an arbitration

action in Geneva in spring 2021 against the municipality of Budva for non-fulﬁlment of the investment contract. The outcome of these

proceedings can lead to valuation adjustments in future periods (also see note 61. Risk management).

53EVN Annual Financial Report 2022 / 23

The valuation of the provisions for pensions, pension-related obligations and severance payments are based on assumptions for the

discount rate, retirement age and life expectancy as well as pension and salary increases. The adjustment of these parameters in future

periods can lead to valuation adjustments. Moreover, future changes in electricity and natural gas tariffs can lead to valuation adjust-

ments in the pension-related obligations (see note 52. Non-current provisions).

Assumptions and estimates are also required to determine the useful life of non-current assets (see notes 6. Intangible assets and

7. Property, plant and equipment), and the provisions for legal proceedings and environmental protection (see note 18. Provisions)

as well as estimates for other obligations and risks (see note 65. Other obligations and risks). In addition, it is necessary to make

assumptions and estimates for the valuation of receivables and inventories (see notes 12. Inventories and 13. Trade and other receiv-

ables) and for the recognition of revenue (see note 20. Revenue recognition), as well for the usability of tax carry forwards (see note

51. Deferred taxes). These estimates are based on historical data and other assumptions considered appropriate under the given

circumstances.

Information on climate change

As an energy and environmental services provider, EVN is committed to making a concrete contribution to climate protection. The

company’s strategic considerations include the special requirements created by the energy transformation and the far-reaching changes

required by this transformation towards climate neutrality as well as the related effects on all sectors of the economy and on private

households. Analyses in this context place a special focus on the requirements for climate protection, possible implementation tracks and

the implications for the company’s business model. These elements create an important basis for evaluating the opportunities and risks

for our business resulting, from climate change and the related, rapidly changing regulations.

EVN terminated electricity generation from hard coal in 2020/21. In summer 2021, the company joined the Science Based Targets initia-

tive (SBTi) and, in this connection, set ﬁve reduction goals for its activities. The EVN Climate Initiative “EVN for the climate” was launched

in 2020/21 to realise these goals. It includes three focal points: the concrete reduction of CO₂ emissions, climate neutrality in selected

group companies, and a contribution by EVN’s research and development to climate protection. Success in this area will make an impor-

tant contribution to realising the climate goal agreed in Paris to limit global warming to clearly below 2°C.

The majority of EVN’s assets are subject to unpredictable weather conditions due to the generation and transmission or distribution

technologies in use. This applies, in particular, to the in part exposed generation infrastructure (hydropower and wind power plants,

photovoltaic equipment) and also to the transmission and distribution infrastructure. Climate changes can have a lasting inﬂuence on the

hydropower, wind power and photovoltaic offering over the long term, which could lead to more extreme seasonal and annual devia-

tions in generation. Changing climatic conditions can also lead to different demand-related behaviour. The declining demand for heating

products will be accompanied by a greater demand for drinking water. In view of the high priority given to climate protection at EVN,

potential climate risks are identiﬁed and assessed as part of the central risk management process. The active handling of risks can limit

the effects on the company or support the conscious perception of opportunities for additional growth.

The impact of climate change on the recognition and valuation of assets and liabilities is evaluated at regular intervals. Climate-related

earnings ﬂuctuations – whether they result from production differences or changes in demand – are analysed with sensitivity and scenario

calculations as part of the planning process and, after approval by management, transferred to the forecast calculations. The measures

derived from the EVN Climate Initiative also ﬂow into these calculations which, in total, form the basis for the impairment tests required

by IAS 36 (see notes 22. Procedures and effects of impairment tests and 36. Property, plant and equipment). The risks arising

from climate change are also included in the determination of the useful life of depreciable assets (see note 7. Property, plant and

equipment), the measurement of inventories (see note 12. Inventories) and the recognition and measurement of provisions (see note

18. Provisions).

Consolidated notes — Accounting policies

54EVN Annual Financial Report 2022 / 23

The CO₂ emissions from twelve of our electricity generation and heating supply plants are covered by the EU’s emission rights trading

scheme (EU-ETS). In accordance with the ETS, we needed 318,582 CO₂ emission certiﬁcates in the 2022/23 ﬁnancial year. The emission

certiﬁcates required for heat production in Austria were granted free of charge, and the remainder were purchased over the wholesale

market (see notes 40. Inventories and 57. Current provisions).

Impact of the war in Ukraine

The possible effects of the war in Ukraine were evaluated, in particular, with regard to the recoverability of assets as deﬁned by IAS 36

and IFRS 9 and to further uncertainties connected with discretionary assessments.

Russia’s assault on Ukraine which began on 24 February 2022 has strained relations between the majority of the international commu-

nity and the Russian Federation and led to a series of reciprocal sanctions by the EU as well as the Russian Federation. The result was a

massive increase in the wholesale prices for electricity and primary energy, which have since stabilised at a level two- to three-times

higher than before the crisis. Further developments are uncertain due to the tense situation and can bring an increase in energy prices at

any time. Added reciprocal sanctions and/or a possible halt to gas deliveries by Russia could have a signiﬁcant inﬂuence on the energy

market and a negative effect on the macroeconomic environment.

The possible termination of gas deliveries by Russia could, depending on the timing and duration, have an impact on natural gas supplies

for EVN’s customers. The volume of non-Russian gas and strategic gas inventories were expanded in view of this possibility. Measures to

support supply security are connected with higher costs and can have a negative inﬂuence on earnings in individual periods.

The volatile development of energy prices had a negative effect on earnings in the energy supply business. To protect energy supplies,

EVN successively purchased natural gas supplies and concluded futures contracts for electricity. The decline in the market prices for

electricity and natural gas subsequently led to negative valuation effects for the recorded natural gas inventories and derivative futures

in 2022/23. Provisions were also required for contingent losses from onerous customer contracts (see note 30. Share of results from

equity accounted investees with operational nature).

As a consequence of the political developments in Russia, EVN decided in the previous year to withdraw from this market and to sell the

two combined heat and power plants in Moscow. The sale negotiations are currently in the approval process by the Russian government

commission (see note 43. Assets and liabilities held for sale).

Effects of the macroeconomic environment

EVN evaluated the recoverability of assets as deﬁned by IAS 36 and IFRS 9 and further uncertainties connected with discretionary assess-

ments against the backdrop of the current macroeconomic environment.

Economic developments have led to a higher number of insolvencies across Europe, especially after the expiration of government subsidy

measures. These insolvencies are expected to have a negative effect on the macroeconomic environment and cause an increase in receiv-

ables defaults. The EVN Group has included the projected increase in potential default incidents through a forward-looking component,

similar to the procedure followed in previous years.

EVN determines the impairment losses for trade receivables in accordance with IFRS 9.B5.5.35 based on regionally differentiated analyses

of historical default incidents. The inclusion of the forward-looking component led to an increase of EUR 5.0m in the impairment loss

allowance for trade receivables (previous year: EUR 6.1m) (see the section on Credit and default risk under note 61. Risk management).

Apart from price increases on the energy markets and the differing effects on EVN’s activities and business ﬁelds, investments and oper-

ating expenses are also affected by the sharp rise in inﬂation. These cost increases can possibly only be passed on to customers with a

delay. The current macroeconomic developments can also have a – direct and indirect – negative inﬂuence on the demand for energy

and, together with rising costs, have a negative inﬂuence on earnings.

55EVN Annual Financial Report 2022 / 23

Consolidated notes — Accounting policies

Low net debt and a comfortable base of contractually committed, undrawn credit lines give EVN a constant, high degree of ﬁnancial

ﬂexibility and solid liquidity reserves. The high energy prices in recent months had a substantial negative impact on earnings from energy

supply, while renewable energy generation made a positive contribution to earnings. Stabilising effects were provided, above all, by

EVN‘s integrated business model and widely diversiﬁed customer portfolio. The EVN Group can therefore be considered a going concern.

24. Principles of segment reporting

The identiﬁcation of operating segments is based on the internal organisational and reporting structure and information prepared for

internal management decisions (the “management approach”). The Executive Board of the EVN Group (the chief operating decision-

maker as deﬁned in IFRS 8) reviews internal management reports on each operating segment at least once each quarter. EVN has deﬁned

the following operating segments: Generation, Energy, Networks, South East Europe, Environment and All Other Segments. This con-

forms in full to the internal reporting structure. The assessment of all segment information is consistent with the IFRS. EBITDA is used as

an indi cator to measure the earning power of the individual segments. For each segment, EBITDA represents the total net operating proﬁt

or loss before interest, taxes, amortisation of intangible assets and depreciation of property, plant and equipment for the companies

included in the segment, taking intragroup income and expenses into account (see note 59. Notes to segment reporting).

56EVN Annual Financial Report 20 22 / 23

Notes to the consolidated statement of operations

25. Revenue

Revenue from contracts with customers is recognised when control of a good or service is transferred to the customer. The consider ation

is recognised in the amount that the company expects to receive in exchange for these goods or services.

In addition to revenue from contracts with customers, EVN generates other revenue from its ordinary business activities. This revenue is

presented separately in the following table:

Revenue

EURm 2022/23 2021/22

Revenue from contracts with customers

3,662.9 3,995.3

Other revenue 105.7 66.9

Total

3,768.7 4,062.2

Other revenue includes valuation effects of EUR 73.7m (previous year: EUR 44.9m) related to energy derivatives which are attributable to

the Energy Segment. Positive and negative results from the valuation of these derivatives are offset for reporting. In addition, EVN recognised

operating lease revenue of EUR 32.2m in the 2022/23 ﬁnancial year (previous year: EUR 22.1m).

The following table shows the revenue from contracts with customers classiﬁed by segment and product:

Revenue from contracts by segment and product

EURm 2022/23 2021/22

Electricity

437.1 405.4

Natural gas 191.0 57.7

Heat 239.6 186.3

Other 42.4 34.3

Energy

910.1 683.7

Electricity 75.7 95.3

Other 57.0 64.2

Generation

132.8 159.5

Electricity 374.6 331.3

Natural gas 103.0 103.7

Other 86.8 82.2

Networks

564.5 517.3

Electricity 1,464.4 1,973.4

Natural gas 9.9 9.4

Heat 11.9 11.2

Other 13.4 8.4

South East Europe

1,499.7 2,002.4

Environmental services 525.3 604.3

Electricity 4.9 6.1

Heat 1.3 1.5

Environment

531.4 611.8

Other 24.5 20.6

All Other Segments

24.5 20.6

Total

3,662.9 3,995.3

57EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of operations

EVN generally recognises revenue over time in its core business of energy supplies and deliveries as well as in the international project

business. An exception to this practice is the recognition of revenue by EVN Wärmekraftwerke in connection with the thermal waste utili-

sation plant in Dürnrohr, where revenue is recognised at a speciﬁc point in time. The related revenue amounted to EUR 51.9m in 2022/23

(previous year: EUR 53.1m).

Sales revenues which are expected to be realised in future in connection with performance obligations and which have not yet been met

or have only been partially met as of 30 September 2023, mainly relate to network subsidies and the international project business.

In total, the remaining performance obligations amount to EUR

942.5m

(previous year: EUR 875.2m) at the balance sheet date. Of this

amount, EUR 873.5m (previous year: EUR 812.4m) relates to performance obligations from the international project business. Revenue is

recognised on the basis of the percentage of completion and will be recognised within the next ﬁve years, depending on the project.

The performance obligations from network subsidies are shown in the following table:

Transaction prices allocated to remaining performance obligations

2022/23 financial year

EURm

< 1 year 1 – 5 years > 5 years

Network subsidies

7.0 28.1 34.0

Total

7.0 28.1 34.0

2021/22 financial year

EURm

< 1 year 1 – 5 years > 5 years

Network subsidies

6.3 25.4 30.7

Total

6.3 25.4 30.7

EVN applies the practical expedient provided by IFRS 15.B16 when the respective requirements are met and recognises revenue at the

amount it is entitled to invoice. Moreover, contracts for electricity and natural gas deliveries as well as contracts for network utilisation in

the household customer business are concluded for an indeﬁnite period. The customer has a unilateral right to terminate the contracts at

any time. As a result, EVN does not have a contractual right to transfer the related performance obligations or to receive consideration.

EVN therefore uses the practical expedients provided by IFRS 15.121 for the two cases described above and does not disclose any informa-

tion on the remaining performance obligations.

26. Other operating income

Other operating income

EURm 2022/23 2021/22

Income from the reversal of deferred income from network subsidies

58.3 53.3

Own work capitalised 29.8 31.8

Compensation and remunerations 7.0 14.1

Rental income 3.5 3.0

Result from the disposal of intangible assets, and property, plant and equipment 1.9 –2.8

Change in work in progress 3.6 –5.2

Miscellaneous other operating income 23.4 15.4

Total

127.5 109.5

58EVN Annual Financial Report 20 22 / 23

The reversal of deferred income from network subsidies in other operating income relates to grants related to the regulated area.

The decrease in compensation and remuneration is mainly due to the discontinuation of warranties granted in the previous year in

connection with a wastewater treatment system.

Miscellaneous other operating income consists, above all, of bonuses, subsidies and services that are not related to business activities.

27. Cost of materials and services

Cost of materials and services

EURm 2022/23 2021/22

Electricity procurement costs

1,229.6 1,803.0

Gas procurement costs 355.3 382.8

Other energy expenses 90.6 92.4

Electricity purchases from third parties and primary energy expenses

1,675.5 2,278.2

Third-party services and other materials and services 662.7 707.1

Total

2,338.2 2,985.3

The cost of materials includes valuation effects from derivative contracts in the energy sector. In the business year under report, these

resulted in a decrease in expenses of EUR 19.8m (previous year: increase in expenses of EUR 49.2m).

Other energy expenses include in particular biomass procurement costs and expenses for the use of purchased CO

emission certiﬁcates.

The expenses for third-party services and other materials and services mainly relate to the project business of the Environment Segment

and to third-party services for the operation and maintenance of plants. Moreover, this item also includes other expenses directly allocable

to the provision of services.

28. Personnel expenses

Personnel expenses

EURm 2022/23 2021/22

Salaries and wages

331.7 287.8

Severance payments 5.0 5.1

Pension costs 4.8 10.4

Compulsory social security contributions and payroll-related taxes

68.1 60.4

Other employee-related expenses 9.6 8.4

Total

419.2 372.2

Personnel expenses include contributions to the VBV Pensionskasse in the amount of EUR 7.8m (previous year: EUR 7.1m) and contributions

to company employee provision funds in the amount of EUR 2.1m (previous year: EUR 1.7m).

The provisions of § 744 of the Austrian Social Security Act led to a reduction in pension adjustments compared with previous years and

led to a decline of EUR 4.9m in pension costs.

59EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of operations

The average number of employees was as follows:

Employees by segment

2022/23 2021/22

Generation

298 229

Networks 1,340 1,345

Energy 326 274

South East Europe 4,072 4,114

Environment 654 622

All Other Segments 564 550

Total

7,255 7,135

1) Average for the year

The average number of employees comprised 97.8% salaried and 2.2% wage employees (previous year: 97.7% salaried and 2.3% wage

employees), whereby no distinction is made between salaried and wage employees in Bulgaria and North Macedonia. Wage employees

are therefore counted together with salaried employees in these countries.

29. Other operating expenses

Other operating expenses

EURm 2022/23 2021/22

Business operation taxes and duties

62.8 18.4

Legal and consulting fees, expenses related to process risks 20.9 14.2

Write-up/write-off of receivables 20.7 38.0

Maintenance 14.7 13.7

Telecommunications and postage 12.6 11.4

Advertising expenses 11.1 10.3

Transportation and travelling expenses, automobile expenses 10.9 12.8

Insurance 9.3 11.2

Rents 4.5 4.5

Employee training 2.5 2.1

Miscellaneous other operating expenses 32.3 21.9

Total

202.2 158.4

The Austrian Federal Act on the Energy Crisis Contribution – Electricity introduced a levy of 90% on the surplus proceeds earned

from electricity generation in Austria as of 1 December 2022. The threshold for the calculation of surplus proceeds was set at

EUR 140 per MWh up to 31 May 2023 but reduced to EUR 120 per MWh from 1 June 2023 up to the expiration date on 31 Decem-

ber 2023. The threshold can be increased up to EUR 176 per MWh, respectively EUR 156 per MWh based on the inclusion of allowable

investments in renewable energies and energy efficiency measures. A levy to moderate the energy and price crisis was also introduced

in North Macedonia during 2022/23, whereby this solidarity tax for companies in North Macedonia was only collected once.

This levy on surplus proceeds from electricity generation in Austria and the solidarity tax in North Macedonia were reﬂected in the

recognition of expenses totalling EUR 31.2m.

The increase in business operation taxes and duties resulted primarily from the levy on surplus proceeds from electricity generation in

Austria and the solidarity tax in North Macedonia. In addition, provisions were recognised for tax audits in South East Europe .

60EVN Annual Financial Report 2022 / 23

The position legal and consulting fees, expenses related to process risks also contains the change in the provision for process costs

and risks. The item rents includes non-capitalised rental expenses (see note 36. Property, plant and equipment) as well as changes

in provisions for rents for network access in Bulgaria. In addition, expenses which are not under the scope of IFRS 16 are also included.

The decline in receivables write-offs resulted mainly from a reduction in the balance of receivables in North Macedonia. As in previous years,

a forward-looking component was included in 2022/23 to reﬂect expected future receivables defaults (see note 61. Risk management).

Miscellaneous other operating expenses include environmental protection expenses, fees for monetary transactions, licenses, member-

ship fees and administrative and office expenses.

30. Share of results from equity accounted investees with operational nature

Share of results from equity accounted investees with operational nature

EURm 2022/23 2021/22

EVN KG

–240.3 7.2

RAG 79.1 51.7

Burgenland Energie 31.0 14.4

Verbund Innkraftwerke 28.8 8.2

Ashta 11.0 0.7

ZOV; ZOV UIP 10.8 12.0

Umm Al Hayman 6.4 4.6

EnergieAllianz –3.3 –2.4

Other companies 8.7 2.5

Total

–67.6 98.9

The share of results from equity accounted investees with operational nature (see note 64. Disclosures of interests in other entities)

is reported as part of the results from operating activities (EBIT). The consolidated ﬁnancial statements do not include any equity-accounted

companies of a ﬁnancial nature.

The share of results from equity accounted investees with operational nature consists primarily of earnings contributions, impairment

losses recognised to assets capitalised in connection with acquisitions and other necessary impairment losses and write-ups (see note

37. Investments in equity accounted investees).

The share of results from equity accounted investees with operational nature decreased to EUR –67.6m in ﬁnancial year 2022/23

( previous year: EUR 98.9m). This was mainly due to the development of EVN KG. A write-up of the Ashta hydropower plant in the amount

of EUR 11.1m had the opposite effect (see note 37. Investments in equity accounted investees).

31. Depreciation and amortisation and effects from impairment tests

The procedure used for impairment testing is described as part of the disclosures on accounting policies under note 22. Procedures and

effects of impairment tests .

61EVN Annual Financial Report 20 22 / 23

Consolidated notes — Notes to the consolidated statement of operations

Depreciation and amortisation and effects from impairment tests by items of

the consolidated statement of financial position

EURm 2022/23 2021/22

Intangible assets

20.5 73.4

Property, plant and equipment 302.6 338.8

Other non-current assets

20.6 20.6

Write-up of property, plant and equipment –3.2 –9.6

Total

340.4 423.2

1) Depreciation of capitalised contract costs

Depreciation and amortisation and effects from impairment tests

EURm 2022/23 2021/22

Scheduled depreciation and amortisation

336.5 318.0

Effects from impairment tests (impairment)

7.1 114.8

Effects from impairment tests (reversal of impairment)

–3.2 –9.6

Total

340.4 423.2

1) For details, see notes 35. Intangible assets and 36. Property, plant and equipment

32. Financial results

Financial results

EURm 2022/23 2021/22

Income from investments

Dividend payments

169.3 51.4

thereof Verbund AG

158.0 46.1

thereof Verbund Hydro Power GmbH

9.1 3.5

thereof Wiener Börse AG

1.5 1.5

thereof other companies

0.8 0.4

Valuation results/disposals

–0.3 –

Total income from investments

169.0 51.4

Interest results

Interest income on financial assets

1.9 1.7

Other interest income

14.6 3.7

Total interest income

16.5 5.4

Interest expense on financial liabilities

–34.0 –29.2

Interest expense personnel provisions

–10.4 –4.1

Other interest expense

–12.9 –4.7

Total interest expense

–57.4 –37.9

Total interest results

–40.9 –32.5

Other financial results

Results from changes in exchange rates and the disposal of securities from non-current financial assets

0.7 –3.3

Results from changes in exchange rates and the disposal of current financial assets

2.8 –5.8

Currency gains/losses –3.9 –25.5

Other financial results –0.1 –14.7

Total other financial results

–0.5 –49.4

Financial results

127.6 –30.5

62EVN Annual Financial Report 20 22 / 23

Interest income on ﬁnancial assets includes interest from investment funds whose investment focus is on ﬁxed-interest securities, as well

as the interest component from leasing business. Other interest income includes income from liquid funds and securities held as current

ﬁnancial assets.

Interest income on ﬁnancial assets recognised using the effective interest method amounted to EUR 15.6m (prior year: EUR 3.2m) .

The interest expense on ﬁnancial liabilities represents regular interest payments on issued bonds and bank loans.

Other interest expense includes the interest expense for lease liabilities, the accrued interest expense on non-current provisions, expenses

for current loans as well as leasing costs for biomass equipment, distribution and heating networks. The interest expense on liabilities not

designated at fair value through proﬁt or loss totalled EUR 46.9m (previous year: EUR 33.8m) .

The increase in the ﬁnancial result was mainly due to the dividend payment by Verbund AG in the amount of EUR 158.0m.

33. Income tax expense

Income tax expense

EURm 2022/23 2021/22

Current income tax income and expense 7.3 50.9

thereof Austrian companies –14.2 32.3

thereof foreign companies 21.5 18.6

Deferred tax income and expense 66.7 13.1

thereof Austrian companies 51.9 –1.2

thereof foreign companies 14.9 14.4

Total 74.0 64.0

The following table explains the reasons for the difference between the Austrian corporate income tax rate of 24.0% that applied in 2023

(previous year: 25.0%) and the tax expense based on the Group net result reported on the consolidated statement of operations for

the 2022/23 ﬁnancial year:

Calculation of the effective tax rate 2022/23 2021/22

% EURm % EURm

Result before income tax

656.2 301.2

Income tax rate/income tax expense at nominal tax rate

24.0 157.5 25.0 75.3

– Different corporate income tax rates in other countries

–3.6 –23.3 –3.9 –11.8

– Effect of tax rate change

–0.3 –2.2 –1.3 –4.0

– Tax-free income from investments

–12.5 –82.0 –11.9 –35.8

+ Revaluation of deferred taxes

3.6 23.6 14.0 42.0

+ Impairment of goodwill

– – 4.4 13.2

–

Tax share valuations and impairment on Group receivables

–0.1 –0.6 –2.2 –6.7

+ Non-deductible expenses

0.6 3.7 1.2 3.5

– Other tax-free income

–0.5 –3.2 –0.5 –1.4

+ Aperiodic tax increases

0.3 1.7 0.1 0.2

–

Other items

–0.2 –1.2 –3.5 –10.4

Effective tax rate/effective income tax expense

11.3 74.0 21.3 64.0

63EVN Annual Financial Report 20 22 / 23

Consolidated notes — Notes to the consolidated statement of operations

The changes in the revaluation of deferred taxes resulted primarily from the recognition of previously unrecognised tax losses .

The effective tax burden on EVN for the 2022/23 ﬁnancial year amounts to 11.3% of earnings before taxes (previous year: 21.3%). The

effective tax rate is a weighted average of the effective local income tax rates of all consolidated subsidiaries (see note 51. Deferred taxes).

34. Earnings per share

Earnings per share were calculated by dividing Group net result (= proportional share of net result attributable to EVN AG shareholders)

by the weighted average number of ordinary shares outstanding in 2022/23, i. e. 178,225,093 (previous year: 178,187,472) (see note

48. Treasury shares). This amount may be diluted by so-called potential shares arising from stock options or convertible bonds. Since

EVN does not have any such shares, there is no difference between basic and diluted earnings per share. Based on the Group net result

of EUR 529.7m for the 2022/23 ﬁnancial year (previous year: EUR 209.6m), earnings per share equalled EUR 2.97 (previous year: EUR 1.18).

64EVN Annual Financial Report 2022 / 23

Notes to the consolidated statement of financial position

Assets

35. Intangible assets

Goodwill is allocated to the CGUs “international project business” and “other CGUs”. Rights include electricity procurement rights,

transportation rights for natural gas pipelines and other rights (primarily software licenses). Other intangible assets primarily include

the customer bases of the Bulgarian and North Macedonian electricity supply companies.

Reconciliation of intangible assets

2022/23 financial year

EURm Goodwill Rights Other intangible assets Total

Gross value 30.09.2022 216.2 487.1 58.9 762.1

Additions – 40.0 – 40.0

Disposals – –3.6 – –3.6

Transfers – –0.2 – –0.2

Change in the scope of consolidation – 0.7 1.2 1.9

Gross value 30.09.2023 216.2 524.1 60.1 800.3

Accumulated amortisation 30.09.2022 –213.2 –311.3 –46.7 –571.2

Scheduled amortisation – –17.3 –3.1 –20.5

Disposals – 2.7 – 2.7

Accumulated amortisation 30.09.2023 –213.2 –326.0 –49.9 –589.1

Net value 30.09.2022 3.0 175.8 12.1 190.9

Net value 30.09.2023 3.0 198.1 10.2 211.2

2021/22 financial year

EURm Goodwill Rights Other intangible assets Total

Gross value 30.09.2021 216.2 442.2 59.5 717.9

Additions – 47.8 – 47.8

Disposals – –3.6 – –3.6

Transfers – 0.6 –0.6 –

Gross value 30.09.2022 216.2 487.1 58.9 762.1

Accumulated amortisation 30.09.2021 –160.3 –298.0 –43.1 –501.4

Scheduled amortisation – –16.8 –3.6 –20.5

Impairment losses –52.9 –0.1 – –52.9

Disposals – 3.6 – 3.6

Accumulated amortisation 30.09.2022 –213.2 –311.3 –46.7 –571.2

Net value 30.09.2021 55.8 144.2 16.4 216.5

Net value 30.09.2022 3.0 175.8 12.1 190.9

65EVN Annual Financial Report 20 22 / 23

The rights include EVN’s electricity procurement rights to the Danube power plants in Freudenau, Melk and Greifenstein. The carrying

amount totalled EUR 37.6m as of 30 September 2023 (previous year: EUR 41.5m) and will be amortised over the expected remaining opera-

ting life of the power plants.

In 2022/23, a total of EUR 3.9m (previous year: EUR 2.4m) was invested in research and development, EUR 1.1m thereof was capitalised

(previous year: EUR 0.9m).

36. Property, plant and equipment

Reconciliation of property, plant and equipment

2022/23 financial year

EURm

Land and

buildings Lines

Technical

equipment Meters

Other plants,

tools and

equipment

Equipment

under

construction Total

Gross value 30.09.2022 977.5 4,930.7 2,782.4 320.0 240.5 351.0 9,602.2

Currency translation differences – –0.1 –34.3 – – – –34.4

Additions 65.3 166.9 133.2 17.9 34.8 266.7 684.7

Disposals –3.7 –14.6 –14.0 –9.3 –7.9 –0.6 –50.0

Transfers 43.4 79.2 84.6 0.1 4.6 –211.8 –

Change in the scope of consolidation 1.4 1.9 14.2 – 1.5 4.4 23.3

Gross value 30.09.2023 1,084.0 5,163.9 2,966.1 328.7 273.6 409.7 10,225.9

Accumulated amortisation 30.09.20

22 –570.1 –2,784.4 –2,063.0 –126.4 –166.7 –11.3 –5,721.7

Currency translation differences – – 34.2 – – – 34.2

Scheduled depreciation –28.3 –131.4 –83.2 –25.6 –26.9 – –295.4

Impairment losses –1.4 –4.3 –1.4 – – – –7.1

Revaluation 2.0 0.7 0.5 – – – 3.2

Disposals 2.5 14.5 12.6 8.3 8.3 0.4 46.6

Reclassifications 0.2 0.1 –0.1 – – –0.1 0.1

Accumulated amortisation 30.09.2023

–595.1 –2,904.8 –2,100.4 –143.7 –185.2 –10.9 –5,940.2

Net value 30.09.2022 407.5 2,146.3 719.4 193.6 73.9 339.8 3,880.4

Net value 30.09.2023 488.8 2,259.2 865.6 185.0 88.3 398.8 4,285.7

Consolidated notes — Notes to the consolidated statement of financial position

66EVN Annual Financial Report 2022 / 23

2021/22 financial year

EURm

Land and

buildings Lines

Technical

equipment Meters

Other plants,

tools and

equipment

Equipment

under

construction Total

Gross value 30.09.2021 965.6 4,729.1 2,802.0 294.7 227.9 240.2 9,259.5

Currency translation differences 0.4 1.0 24.4 0.2 0.1 0.1 26.2

Additions 21.8 139.0 60.3 59.8 25.7 215.7 522.3

Disposals –20.9 –10.5 –45.3 –34.8 –13.8 –1.0 –126.3

Transfers 10.8 72.1 20.0 – 0.7 –103.9 –0.4

Reclassification to assets held for sale – – –79.0 – –0.1 – –79.1

Gross value 30.09.2022 977.6 4,930.7 2,782.4 320.0 240.5 351.0 9,602.2

Accumulated amortisation 30.09.20

21 –561.8 –2,632.4 –2,073.8 –133.1 –154.2 –11.9 –5,567.3

Currency translation differences –0.2 –0.6 –23.7 –0.1 –0.1 – –24.7

Scheduled depreciation –25.8 –120.5 –81.1 –23.7 –25.8 – –276.9

Impairment losses –3.9 –43.5 –14.1 –0.1 –0.2 – –61.9

Revaluation 0.5 2.3 6.8 – – – 9.6

Disposals 20.7 10.3 44.0 30.6 13.5 0.6 119.8

Reclassifications 0.5 – – – – – 0.5

Reclassification to assets held for sale – – 79.0 – 0.1 – 79.1

Accumulated amortisation 30.09.2022

–570.1 –2,784.4 –2,063.0 –126.4 –166.6 –11.3 –5,721.7

Net value 30.09.2021 403.8 2,096.7 728.2 161.6 73.6 228.3 3,692.1

Net value 30.09.2022 407.5 2,146.3 719.4 193.6 73.9 339.8 3,880.4

Land and buildings included land with a value of EUR 71.0m (previous year: EUR 63.5m). There was no maximum amount mortgage as of

30 September 2023.

As in the previous year, no property, plant and equipment or intangible assets were pledged as collateral as of 30 September 2023.

The impairment testing of assets in accordance with IAS 36 led to the recognition of the following impairment losses and write-ups

in 2022/23:

Various heating plants attributable to EVN Wärme in the Energy Segment were tested for impairment due to a deterioration in the eco-

nomic environment during 2022/23. The related calculations led to the recognition of impairment losses totalling EUR 5.7m to three plants

and to revaluations of EUR 1.6m to six plants. The recoverable amount was determined on the basis of the value in use and amounted to

EUR 23.9m. A WACC after tax ranging from 5.51% to 5.66% was used as the discount rate, which corresponds to an iteratively derived

pre-tax WACC of 6.50% to 9.05%.

A building used for operations by EVN Wasser was tested for impairment in 2013/14 following the unscheduled shutdown of a wellfield.

The construction and commissioning of a natural filter plant in this operating building led to a revaluation with recognition to profit or

loss of EUR 1.6m to the depreciated cost in 2022/23.

EVN as the lessee

The most important application area for the EVN Group is formed by lease and easement agreements, as well as leased commercial and

warehouse space which are assumed to be based on long-term leases. Rights of use totalling EUR 95.6m (previous year: EUR 74.0m) were

contrasted by lease liabilities with a present value of EUR 80.2m (previous year: EUR 61.8m) as of 30 September 2023. The short-term portion

of the lease liabilities equalled EUR 8.8m (previous year: EUR 6.4m).

67EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of financial position

In connection with subsequent measurement, the rights of use are amortised on a systematic basis over the shorter of the useful life

and the remaining term of the lease. The conclusion of new agreements and the recognition of changes in estimates and modifications

in 2022/23 led to an addition of EUR 28.6m (previous year: EUR 12.0m). Rights of use from lease agreements are reported as part of

property, plant and equipment in accordance with IFRS 16; the development and amortisation of these rights of use are allocated to the

following asset classes:

2022/23 financial year

EURm

Land and

buildings Lines

Technical

equipment

Other plants,

tools and

equipment Total

Rights of use 30.09.2022 58.4 14.8 0.3 0.5 74.0

Additions 24.2 3.5 – 1.1 28.7

Scheduled depreciation –6.5 –0.6 –0.3 –0.4 –7.7

Disposals –0.7 – – – –0.7

Transfers –0.1 – 0.2 –0.1 –

Change in the scope of consolidation 1.2 – – – 1.3

Rights of use 30.09.2023 76.5 17.7 0.1 1.3 95.6

2021/22 financial year

EURm

Land and

buildings Lines

Technical

equipment

Other plants,

tools and

equipment Total

Rights of use 30.09.2021 55.8 11.4 1.0 0.4 68.6

Additions 7.4 3.9 0.4 0.4 12.0

Scheduled depreciation –4.9 –0.5 –1.0 –0.2 –6.6

Rights of use 30.09.2022 58.4 14.8 0.3 0.5 74.0

The determination of the rights of use and corresponding lease liabilities includes all sufficiently probable cash outflows. The cash outflows

from leases totalled EUR 19.9m (previous year: EUR 14.0m) in 2022/23. The consolidated statement of operations contains EUR 3.4m

(previous year: EUR 2.5m) of expenses from unrecognised leases, which include expenses from low-value leases, expenses from short-term

leases (less than twelve months) and expenses from variable lease payments that were not included in the lease liability. The interest

expense for lease liabilities totalled EUR 1.3m (previous year: EUR 0.6m) in 2022/23. The difference between the cash outflows presented

here and the payments for lease liabilities resulted primarily from advance rental payments made in 2022/23. These advance payments are

not reported under cash flow from financing activities because they are not related to lease liabilities; they are instead included under cash

flow from investing activities.

37. Investments in equity accounted investees

The companies included in the consolidated financial statements at equity are listed in the notes under EVN’s investments starting on

page 115. Note 64. Disclosures of interests in other entities contains financial information on joint ventures and associates that are

included at equity in EVN’s consolidated financial statements.

All investments in equity accounted investees were recognised at their proportional share of IFRS income or loss based on an interim or

annual report with a balance sheet date that does not precede the balance sheet date of EVN by more than three months. There were no

listed market prices for the investments in equity accounted investees included in the consolidated financial statements.

68EVN Annual Financial Report 2022 / 23

Reconciliation of investments in equity accounted investees

2022/23 financial year

EURm

Gross value 30.09.2022

968.3

Additions 329.6

Disposals –5.8

Gross value 30.09.2023

1,292.2

Accumulated amortisation 30.09.2022

1,419.7

Currency translation differences –2.5

Change in the scope of consolidation 0.9

Revaluation 11.1

Proportional share of results –78.7

Dividends –105.3

Changes recognised in other comprehensive income –1,434.0

Accumulated amortisation 30.09.2023

–188.9

Net value 30.09.2022

2,388.0

Net value 30.09.2023

1,103.4

2021/22 financial year

EURm

Gross value 30.09.2021

918.3

Additions 50.0

Gross value 30.09.2022

968.3

Accumulated amortisation 30.09.2021

659.2

Currency translation differences 3.8

Proportional share of results 98.9

Dividends –152.6

Changes recognised in other comprehensive income 810.3

Accumulated amortisation 30.09.2022

1,419.7

Net value 30.09.2021

1,577.5

Net value 30.09.2022

2,388.0

To protect energy supplies, EVN KG continuously purchased natural gas supplies and concluded futures contracts for electricity. The decline

in the market prices for electricity and natural gas subsequently led to negative valuation effects for the recognised natural gas inventories

and derivative futures. Provisions were also required for contingent losses from onerous customer contracts. EVN injected new capital to

cover the company’s losses and ensure its operational capability. The subsidies to EVN KG totalled EUR 318.4m in 2022/23. The at equity

carrying amount of EVN KG equalled EUR 0.0m as of 30 September 2023. Value adjustments of EUR 16.9m could not be recorded directly

in equity because the at equity carrying amount would then have been negative.

A capital contribution of EUR 8.6m was provided to EnergieAllianz in 2022/23. The at equity carrying amount of EnergieAllianz equalled

EUR 0.0m as of 30 September 2023. Value adjustments of EUR 34.1m were not recognised because the carrying amount would then

have been negative .

69EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of financial position

EVN-ECOWIND Sonnenstromerzeugungs GmbH was included in the consolidated financial statements of EVN AG for the first time

in 2022/23. This resulted in the recognition of a EUR 0.5m addition (also see 4. Scope of consolidation). A shareholder contribution

of EUR 2.2m was also made to EVN-ECOWIND.

The disposals resulted from the transferral of the “sales and energy-related services“ business unit from EVN KG and to changes in the

scope of consolidation in connection with s2e and Biowärme Amstetten-West GmbH (also see note 4. Scope of consolidation).

The carrying amount of equity accounted investees, excluding additions and disposals, declined by EUR 1,620.1m in 2022/23. These

changes resulted chiefly from adjustments of EUR –1,445.2m to the fair value of derivative financial instruments in the energy business

which are designated as cash flow hedges and related to the investments in EVN KG and EnergieAllianz and also included an earnings

contribution of EUR –240.3m from EVN KG.

38. Other investments

The item other investments includes holdings in affiliates and associates, which are not consolidated due to immateriality, as well as

miscellaneous stakes of less than 20.0% that were not included at equity.

The shares in affiliates and associates which are not consolidated due to immateriality are measured at cost less any necessary impairment

losses and totalled EUR 7.0m in 2022/23 (previous year: EUR 6.2m). The other investments classified as FVOCI consist primarily of shares

in Verbund AG with a value of EUR 3,381.1m (previous year: EUR 3,837.5m) and miscellaneous other investments of EUR 167.4m (previous

year: EUR 190.9m). The valuation adjustments were recorded under other comprehensive income, the dividends were recorded in the

consolidated statement of operations (also see note 32. Financial results).

EVN AG and Wiener Stadtwerke Holding AG entered into an agreement on 22 September 2010 for the syndication of their directly and

indirectly held shareholdings in Verbund AG. This agreement gives the two companies joint control over approximately 26% of the voting

shares in Verbund AG. In spite of the syndicate agreement, the scope of possible influence over the financial and business policies of

Verbund AG is very limited. The requirements for classification as a controlling influence (IAS 28) are therefore not met and the shares

in Verbund AG are therefore accounted by applying IFRS 9.

The valuation of the investment in Verbund Hydro Power AG in 2022/23 based on the discounted cash flow method resulted in an impair-

ment loss of EUR 26.2m in the Generation Segment. The recoverable amount was determined on the basis of fair value less costs to sell

(Level 3 according to IFRS 13) and amounted to EUR 132.8m. A WACC after tax of 5.54% was used as the discount rate. The present value

model underlying the valuation is based on publicly available information from the annual financial statements and, according to available

data for electricity prices, forecasts the development of the years up to 2050 and a perpetual yield without a growth rate.

In the Networks Segment, the valuation of the investment in AGGM Austrian Gas Grid Management AG based on the discounted cash

flow method resulted in the recognition of an impairment loss of EUR 1.3m. The recoverable amount was determined on the basis of

fair value less costs to sell (Level 3 according to IFRS 13) and amounted to EUR 3.0m. A WACC after tax of 4.90% was used as the dis-

count rate. The present value model underlying the valuation is based on a perpetual yield without a growth rate which, in turn, was

developed from the average trend of data from the publicly available annual financial statements for 2019–2022 and a forecast for the

2023 financial year.

In the All Other Segments, the valuation of the investment in Wiener Börse AG based on the discounted cash flow method resulted in an

impairment loss of EUR 0.2m in 2022/23. The recoverable amount was determined on the basis of fair value less costs to sell (Level 3

according to IFRS 13) and amounted to EUR 30.5m. A WACC after tax of 6.47% was used as the discount rate. The present value model

underlying the valuation includes forecasted distributions for the coming year as well as a perpetual yield without a growth rate .

70EVN Annual Financial Report 2022 / 23

39. Other non-current assets

Other non-current assets

EURm 30.09.2023 30.09.2022

Non-current financial assets

Securities 71.0 68.8

Loans receivable 25.0 25.1

Lease receivables 10.1 12.7

Receivables arising from derivative transactions 11.7 –

Receivables and other assets 25.3 13.9

Non-current other assets

Contract assets 2.4 1.9

Contract costs 15.5 36.1

Primary energy reserves 0.8 0.8

Remaining other non-current assets 12.4 3.9

Total

174.3 163.0

Securities reported under other non-current assets consist mainly of shares in investment funds and serve as coverage for the provisions

for pensions and similar obligations as required by Austrian tax law. The carrying amounts correspond to the fair value as of the balance

sheet date.

Lease receivables relate to project business in connection with PPP-projects. The decline in the fiscal year is mainly due to the contractually

agreed redemption payments.

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

Terms to maturity of non-current lease receivables

EURm

Remaining term to maturity as of 30.09.2023 Remaining term to maturity as of 30.09.2022

Principal

components

Interest

components Total

Principal

components

Interest

components Total

< 5 years 8.9 0.7 9.6 7.6 0.5 8.2

> 5 years 1.2 0.1 1.3 5.0 0.1 5.1

Total

10.1 0.8 10.9 12.7 0.6 13.3

The total of the principal components corresponds to the capitalised value of the lease receivables. 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 2022/23 were reported as interest income on non-current assets.

Receivables and other assets include claims from trade receivables in North Macedonia that are reported under non-current assets as a

result of instalment plan agreements. In addition, non-current receivables from the Bulgarian Post in the amount of EUR 16.4m are

included for the first time in the 2022/23 financial year .

71EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of financial position

Contract costs represent the costs for obtaining contracts, as defined in IFRS 15.91, and are related to the international project business.

Contract costs totalling EUR 86.7m were capitalised in financial year 2019/20 and will be amortised on a systematic basis in line with

the expected timing of the contract on which the costs are based and depending on how the goods or services are transferred to the

customer. Therefore, the original depreciation period is between 2.5 years and 4 years. As a result of the current depreciation of EUR 20.6m

(previous year: EUR 20.6m) in the financial year 2022/23, the book value decreased to EUR 15.5m (see note 31. Depreciation and

amortisation and effects from impairment tests) .

Current assets

40. Inventories

Inventories

EURm 30.09.2023 30.09.2022

Primary energy inventories

67.6 120.0

emission certificates 13.6 16.9

Raw materials, supplies, consumables and other inventories 47.8 62.3

Customer orders not yet invoiced 8.8 7.6

Total

137.7 206.8

Primary energy inventories consist primarily of natural gas. Gas inventories totalled EUR 61.0m as of 30 September 2023

(previous year: EUR 117.2m).

Part of the natural gas inventories are measured according to the broker-trader exception because they are held exclusively for trading.

Consequently, these natural gas inventories are measured at fair value (Level 1) less costs to sell. The fair value of the inventories held for

trading totalled EUR 48.1m (previous year: EUR 0.1m) as of 30 September 2023. Negative changes in the market value resulted in a

revaluation through profit or loss of EUR –10.5m (previous year: EUR 0.1m) as of 30 September 2023.

The CO

emission certificates relate exclusively to certificates purchased to fulfil the requirements of the Austrian Emission Certificate Act

and which have not yet been used. The corresponding obligation for any shortfall in the certificates is reported under current provisions

(see note 57. Current provisions).

Valuation allowances of EUR 0.9m were recognised to inventories in 2022/23 (previous year: EUR 0.7m) and were contrasted by revaluations

of EUR 0.2m (previous year: EUR 0.1m). The inventories are not subject to any restrictions on disposal or other encumbrances.

72EVN Annual Financial Report 2022 / 23

41. Trade and other receivables

Trade and other receivables

EURm 30.09.2023 30.09.2022

Financial assets

Trade accounts receivable 331.2 306.1

Receivables from investments in equity accounted investees 147.7 50.6

Receivables from non-consolidated subsidiaries 3.1 5.9

Receivables from employees 10.0 9.2

Receivables arising from derivative transactions 69.1 27.0

Lease receivables 2.2 1.5

Other receivables and assets 155.8 180.9

719.1 581.2

Other receivables

Taxes and levies receivable 58.1 48.1

Prepayments 128.0 142.8

Contract assets 178.4 221.4

364.5 412.3

Total

1,083.6 993.5

Trade accounts receivable relate mainly to electricity, natural gas and heating customers and customers from the international project

business. Notes to impairment losses and default risks for trade receivables can be found in note 61. Risk management.

Receivables from investments in equity accounted investees and receivables from non-consolidated subsidiaries arise primarily from

intragroup transactions related to energy supplies as well as Group financing and services provided to those companies.

The receivables arising from derivative transactions consist of the positive market values of derivatives in the energy business. Other

receivables and assets include, among others, receivables from insurance and short-term loans receivable, as well as security retained

in the international project business. The developement in contract assets resulted primarily from contract orders in the international

project business. In 2022/23, as in the previous year, no impairments were recognised in connection with contract assets .

As of 30 September 2023, as in the previous year, no receivables were pledged as collateral for EVN’s own liabilities .

42. Securities and other financial investments

Composition of securities and other financial investments

EURm 30.09.2023 30.09.2022

Funds

229.5 193.3

thereof cash funds 229.3 193.1

thereof other fund products 0.2 0.2

Time deposits 14.1 14.4

Restricted cash 22.9 9.3

Total

266.5 216.8

73EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of financial position

A write-up of EUR 1.7m was recorded through profit or loss in 2022/23 (previous year: a small amount below EUR 0.1m). The time

deposits reported under this item have a maturity of more than three months.

The item restricted cash includes bank balances that have been pledged and are therefore not available for general use by the Group.

43. Assets and liabilities held for sale

EVN, together with its two fully consolidated subsidiaries OOO EVN Umwelt Service and OOO EVN Umwelt, operates two sludge-fired

combined heat and power plants in Moscow. These plants are allocated to the Environment Segment. The war in Ukraine has had a

negative influence on relations between the majority of the international community of states and the Russian Federation, and the risk of

the orderly continuation of business operations in Russia is more difficult to calculate. In view of these developments, EVN evaluated

possible exit scenarios and decided to sell the companies. EVN generally assumed that the sale would take place in the 2022/23 financial

year, but there were unexpected delays due to additional requirements and bureaucratic hurdles. The agreement with the buyer was

already reached in the first quarter of the 2022/23 financial year, but the mandatory approval of the Russian government commission has

not yet been granted. EVN fulfills all of the prescribed requirements for the sale of the companies and expects the formal approval of the

Russian government commission to be granted within the next twelve months. The assets and liabilities connected with this disposal

group are therefore classified as current as of 30 September 2023 in accordance with IFRS 5.

As of 30 September 2022, other operating expenses included impairment losses of EUR 1.8m. In addition, impairment losses to property,

plant and equipment and intangible assets were combined into a minor sum of less than EUR 0.1m. A comparison of the carrying amount

and fair value less costs to sell for the disposal group led to a revaluation of EUR 0.4m as of 30 September 2023.

Other comprehensive income includes cumulative expenses connected with the disposal group. The difference from currency translation

equalled EUR –5.4m (previous year: EUR –1.5m) as of 30 September 2023.

The disposal group was measured at fair value less costs to sell as of 30 September 2023 and contains the following assets and liabilities:

Assets and liabilities held for sale

EURm 30.09.2023 30.09.2022

Current assets

5.8 9.3

Assets held for sale

5.8 9.3

Non-current liabilities – 0.5

Current liabilites 0.4 0.8

Liabilities held for sale

0.4 1.3

Current assets include EUR 4.9m (previous year: EUR 7.5m) of bank deposits which are subject to disposal restrictions due to the sanctions

imposed by the Russian Federation.

74EVN Annual Financial Report 2022 / 23

Liabilities

Equity

The development of equity in 2022/23 and 2021/22 is shown on page 29.

44. Share capital

The share capital of EVN AG totals EUR 330.0m (previous year: EUR 330.0m) and is divided into 179,878,402 (previous year: 179,878,402)

zero par value bearer shares.

45. Share premium and capital reserves

The share premium and capital reserves comprise appropriated capital reserves of EUR 205.2m (previous year: EUR 205.2m) from capital

increases and unappropriated capital reserves of EUR 58.3m (previous year: EUR 58.3m), both in accordance with Austrian stock corpo-

ration law.

46. Retained earnings

Retained earnings of EUR 3,417.0m (previous year: EUR 2,979.9m) 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 result of EVN AG as reported in the annual financial statements and developed as follows:

Reconciliation of EVN AG’s result for the period

EURm 2022/23

Reported result for the period 2022/23

416.3

Plus retained earnings from the 2021/22 financial year 0.4

Less additions to voluntary reserves –213.0

Distributable result for the period

203.7

Proposed dividend –203.2

Retained earnings for the 2023/24 financial year 0.5

Liabilities do not include the dividend of EUR 1.14 per share for the 2022/23 financial year which will be proposed to the Annual General.

The 94

Annual General Meeting on 2 February 2023 approved a proposal by the Executive Board and the Supervisory Board to distri-

bute a dividend of EUR 0.52 per share for the 2021/22 financial year. This resulted in a total dividend payment of EUR 92.7m. Ex-dividend

day was 8 February 2023, dividend payment day was 10 February 2023.

47. Valuation reserves

The valuation reserve contains changes in the market value of cash flow hedges and financial assets classified at fair value through other

comprehensive income (FVOCI), the IAS 19 remeasurements and the proportional share of changes in the equity of investments in equity

accounted investees.

I n addition, the statement of comprehensive income includes EUR –0.9m (previous year: EUR 9.4m) for the share of changes in the valu-

ation reserves that are attributable to non-controlling interests (see Consolidated statement of comprehensive income, page 27).

The part of the valuation reserve attributable to equity accounted investees consists primarily of components from cash flow hedges that

were recorded under equity as well as remeasurements in accordance with IAS 19 and the valuation of FVOCI instruments.

75EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of financial position

Valuation reserves

EURm

30.09.2023 30.09.2022

Before tax Tax After tax Before tax Tax After tax

Items recognised under other comprehensive

income from

Financial assets classified at fair value through

other comprehensive income

3,087.0 –709.9 2,377.1 3,566.3 –820.2 2,746.1

Cash flow hedges 28.9 –3.3 25.6 –206.5 55.1 –151.4

Remeasurements IAS 19

–99.6 22.3 –77.3 –73.0 16.3 –56.7

Investments in equity accounted investees

–204.9 53.5 –151.3 1,229.9 –289.7 940.2

Total

2,811.4 –637.4 2,174.0 4,516.7 –1,038.4 3,478.3

In 2022/23, cash flow hedges totalling EUR –15.4m (previous year: EUR –43.0m) were transferred from other comprehensive income to

the consolidated statement of operations. The year-on-year change resulted, above all, from the portfolio hedge as well as from the

hedging of net cash flows from the international project business (see note 63. Reporting on financial instruments). Due to the

ineffectiveness of the hedges an amount of EUR 0.0m (previous year: EUR 0.0m) was recognised in profit or loss.

48. Treasury shares

A total of 36,287 treasury shares were sold during the reporting year to permit their issue as a special payment in accordance with a

company agreement (previous year: 37,888 shares). EVN AG is not entitled to any rights arising from treasury shares. In particular, these

shares are not entitled to dividends.

The number of shares outstanding developed as follows:

Reconciliation of the number of

outstanding shares

Zero par value shares Treasury shares Outstanding shares

30.09.2021

179,878,402 –1,697,245 178,181,157

Purchase of treasury shares – – –

Disposal of treasury shares – 37,888 37,888

30.09.2022

179,878,402 –1,659,357 178,219,045

Purchase of treasury shares

Disposal of treasury shares – 36,287 36,287

30.09.2023

179,878,402 –1,623,070 178,255,332

The weighted average number of shares outstanding, which is used as the basis for calculating earnings per share, equals

178,225,093 shares (previous year: 178,187,472 shares).

76EVN Annual Financial Report 2022 / 23

49. Non-controlling interests

The item non-controlling interests comprises the non-controlling interests in the equity of fully consolidated subsidiaries .

The following table provides information on each fully consolidated subsidiary of EVN with material non-controlling interests before

intragroup eliminations:

Financial information of subsidiaries with

material non-controlling interests

EURm 30.09.2023 30.09.2022

Subsidiaries

RBG BUHO EVN Macedonia RBG BUHO EVN Macedonia

Non-controlling interests (%) 49.97 26.37 10.00 49.97 26.37 10.0

Carrying amount of non-controlling interests 216.1 48.7 33.9 202.0 41.7 34.0

Result attributable to non-controlling interests 39.7 8.2 –0.1 25.8 3.8 2.5

Dividends attributable to non-controlling interests 25.0 2.7 – 24.0 2.7 –

Statement of financial position

Non-current assets 431.7 221.1 399.2 403.8 195.5 391.6

Current assets 0.4 10.4 67.3 0.1 9.4 140.3

Non-current liabilities – 1.0 94.4 – 0.8 108.1

Current liabilities – – 19.8 – 0.1 77.1

2022/23 2021/ 22

Statement of operations

Revenue – – 0.3 – – 0.1

Result after income tax 79.4 31.2 5.4 51.7 14.4 29.3

Net cash flows

Net cash flow from operating activities 50.4 11.3 111.0 47.9 10.4 12.2

Net cash flow from investing activities – – –40.9 – – –34.4

Net cash flow from financing activities –50.0 –10.4 –20.9 –48.0 –10.4 9.8

Non-current liabilities

50. Non-current loans and borrowings

Breakdown of non-current

loans and borrowings

Nominal

interest rate (%) Term Nominal amount

Carrying

amount

30.09.2023

EURm

Carrying

amount

30.09.2022

EURm

Fair value

30.09.2023

EURm

Bonds

469.5 556.7 393.5

JPY bond 3.130 2009–2024 JPY 12.0bn – 87.4 –

EUR bond 4.125 2012–2032 EUR 100.0m 98.8 98.6 99.0

EUR bond 4.125 2012–2032 EUR 25.0m 24.8 24.7 24.7

EUR bond 0.850 2020–2035 EUR 101.0m 101.0 101.0 66.6

Registered bond 2.005 2022–2034 EUR 5.0m 5.0 5.0 4.0

Registered bond 2.440 2022–2037 EUR 150.0m 150.0 150.0 117.0

Registered bond 3.900 2022–2038 EUR 90.0m 90.0 90.0 82.2

Bank loans (incl. promissory note loans)

0.00 –4.99 until 2068 – 633.9 594.0 599.4

Total

1,103.5 1,150.8 992.9

1) In the 2022/23 financial year, a reclassification was made to current financial liabilities in the amount of EUR 249.9m .

77EVN Annual Financial Report 20 22 / 23

Consolidated notes — Notes to the consolidated statement of financial position

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

Maturity of non-current loans

and borrowings

EURm

Remaining term to maturity as of 30.09.2023 Remaining term to maturity as of 30.09.2022

< 5 years > 5 years Total < 5 years > 5 years Total

Bonds

– 469.5 469.5 87.4 469.3 556.7

thereof fixed interest – 469.5 469.5 – 469.3 469.3

thereof variable interest – – – 87.4 – 87.4

Bank loans 203.3 430.6 633.9 235.6 358.5 594.0

thereof fixed interest 199.7 325.6 525.3 229.6 358.5 588.1

thereof variable interest 3.6 105.0 108.6 6.0 – 6.0

Total

203.3 900.1 1,103.5 323.0 827.8 1,150.8

Bonds

All bonds involve bullet repayment on maturity. The foreign currency bond is hedged against interest and foreign exchange risk by means

of cross-currency swaps.

The change in the carrying amount of the bonds resulted primarily from the reclassification of one bond to current financial liabilities

because of the scheduled maturity within the next 12 months.

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 IFRS 9, hedged liabilities are adjusted to reflect the corresponding change in the fair value of the hedged risk in

cases where hedge accounting is applied (see note 63. Reporting on financial instruments).

Bank loans

The loans consist of immaterial general borrowings from banks and loans which are subsidised in part by interest and redemption grants

from the Austrian Environment and Water Industry Fund. This position also includes EUR 247.0m (previous year: EUR 247.0m) of promissory

note loans that were issued in October 2012, April 2020 and in July 2022.

Accrued interest is reported under other current liabilities.

78EVN Annual Financial Report 2022 / 23

51. Deferred taxes

Deferred taxes

EURm 30.09.2023 30.09.2022

Deferred tax assets

Employee-related provisions –25.2 –22.9

Tax loss carryforwards –6.8 –13.9

Investment depreciation –15.2 –23.8

Property, plant and equipment –8.5 –6.8

Provisions –7.3 –11.4

Financial instruments –8.7 –72.6

Other assets –31.1 –3.8

Other liabilities –8.4 –12.7

Deferred tax liabilities

Property, plant and equipment 113.7 78.4

Intangible assets 1.9 2.1

Investments 697.1 1,130.0

Provisions 5.0 8.5

Financial instruments 18.6 8.2

Other assets 4.8 4.7

Other liabilities 5.0 7.2

Total

735.1 1,071.1

thereof deferred tax assets –50.9 –55.6

thereof deferred tax liabilities 785.9 1.126.7

Deferred taxes developed as follows:

Changes in deferred taxes

EURm 2022/23 2021/22

Deferred taxes on 01.10.

1,071.1 978.5

– Changes recognised directly in equity resulting from currency translation differences and other changes –1.7 –0.3

– Changes in deferred taxes recognised through profit and loss 66.7 13.1

– Changes in deferred taxes recognised directly in equity from the valuation reserve –401.0 79.8

Deferred taxes on 30.09.

735.1 1,071.1

Projected tax results will permit the utilisation over the coming years of losses for which deferred tax assets were previously recorded.

Deferred tax assets of EUR 75.1m (previous year: EUR 73.9m) related to loss carryforwards were not recognised because they are not

expected to be used within the foreseeable future. Of this total, EUR 8.6m will expire during the next five years (previous year: EUR 8.6m).

The remaining loss carryforwards that were not capitalised can be carried forward for an indefinite period of time.

Deferred tax liabilities of EUR 110.1m (previous year: EUR 85.7m) on temporary differences of EUR 407.2m (previous year: EUR 325.5m)

were not recognised because these differences will remain tax-free in the foreseeable future. These temporary differences arise from diffe-

rences between the tax base of the participation interest and the proportional share of equity owned less retained earnings, respectively

between the tax base of the participation interest and the carrying amount of the equity accounted investees (outside basis differences).

The changes recorded under other comprehensive income are primarily attributable to financial instruments (EUR –51.8m; previous year:

EUR –119.6m), associates (EUR –343.2m; previous year: EUR 178.6m) and employee-related provisions (EUR –6.0m; previous year: EUR 20.9m).

79EVN Annual Financial Report 20 22 / 23

Consolidated notes — Notes to the consolidated statement of financial position

52. Non-current provisions

Non-current provisions

EURm 30.09.2023 30.09.2022

Provisions for pensions

177.0 172.0

Provisions for pension-related obligations 23.6 20.2

Provisions for severance payments 74.1 69.7

Other non-current provisions 93.1 74.3

Total

367.7 336.2

The calculation of provisions for pensions and similar obligations and provisions for severance payments is mainly based on the following

calculation principles:

The discount rate for the measurement of the provision for pensions and pension-related obligations as well as provisions for sever-

ance payments was set at 4.3% as of 30 September 2023 (previous year: provision for pensions and pension-related obligations 3.7%;

provisions for severance payments 3.6%).

The following parameters are applied:

• Austrian mortality tables AVÖ 2018-P – Rechnungsgrundlagen für die Pensionsversicherung

• Remuneration increases and pension icreases for the following year 7.0% (previous year: 3.5%)

• Remuneration increases and pension icreases for the year 2025 3.5% (previous year: 2.25%)

• Remuneration increases and pension icreases for subsequent years 2.25% (previous year: 2.25%)

Reconciliation of provisions for pensions

EURm 2022/23 2021/22

Present value of pension obligations (DBO) as of 01.10.

172.0 239.2

+ Service costs –4.0 2.0

+ Interest costs 6.4 2.6

– Pension payments –12.3 –12.5

/– Actuarial loss/gain 14.9 –59.4

thereof

Financial assumptions –1.5 –53.1

Assumptions based on experience 16.4 –6.3

Present value of pension obligations (DBO) as of 30.09.

177.0 172.0

As of 30 September 2023, the weighted average remaining term equalled 11.0 years for the pension obligations (previous year: 11.1 years).

Pension payments are expected to total EUR 12.3m in 2023/24 (previous year: EUR 12.6m).

80EVN Annual Financial Report 2022 / 23

Reconciliation of the provisions for pension-related obligations

EURm 2022/23 2021/22

Present value of the provisions for pension-related obligations (DBO) as of 01.10.

20.2 28.1

+ Service costs 0.2 0.4

+ Interest costs 0.8 0.3

– Payments –2.2 –1.2

/–

Actuarial loss/gain

4.6 –7.4

thereof

Financial assumptions –2.0 –9.2

Assumptions based on experience 6.6 1.7

Present value of the provisions for pension-related obligations (DBO) as of 30.09.

23.6 20.2

As of 30 September 2023, the weighted average remaining term equalled 13.6 years for the pension-related obligations (previous year:

14.4 years). The payments for pension-related obligations are expected to total EUR 2.0m in 2023/24 (previous year: EUR 1.3m).

Reconciliation of the provision for severance payments

EURm 2022/23 2021/22

Present value of severance payment obligations (DBO) as of 01.10.

69.7 84.6

Service costs

2.4 3.1

+ Interest costs 2.5 0.8

– Severance payments –8.5 –7.5

– Transfers –0.1 –

/–

Actuarial loss/gain

8.1 –11.3

thereof

Demographic assumptions – –0.1

Financial assumptions –3.4 –13.2

Assumptions based on experience 11.5 2.0

Present value of severance payment obligations (DBO) as of 30.09.

74.1 69.7

As of 30 September 2023, the weighted average remaining term of the severance payment obligations equalled 5.8 years

(previous year: 7.9 years). Severance payments are expected to total EUR 10.1m in 2022/23 (previous year: EUR 9.8m).

A change in the actuarial parameters (ceteris paribus) would have the following effect on the provisions for pensions, pension-related

obligations and severance payments:

Sensitivity analysis for provision for pensions

% 30.09.2023 30.09.2022

Change in

assumption

Decrease in

assumption/

change in DBO

Increase in

assumption/

change in DBO

Decrease in

assumption/

change in DBO

Increase in

assumption/

change in DBO

Interest rate

0.50

5.69 –5.16 5.77 –5.22

Remuneration increases

1.00 –1.17 1.24 –1.74 1.88

Pension increases 1.00 –8.86 10.58 –8.94 10.67

Remaining life expectancy 1 year –4.19 4.24 –4.44 4.48

81EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of financial position

Sensitivity analysis for provision for

pension-related obligations

30.09.2023 30.09.2022

Change in

assumption

Decrease in

assumption/

change in DBO

Increase in

assumption/

change in DBO

Decrease in

assumption/

change in DBO

Increase in

assumption/

change in DBO

Interest rate

0.50

7.07 –6.32 7.56 –6.73

Pension increases 1.00 –10.71 13.10 –5.83 6.46

Remaining life expectancy 1 year –3.21 3.21 –3.42 3.41

Sensitivity analysis for provision for

severance payments

30.09.2023 30.09.2022

Change in

assumption

Decrease in

assumption/

change in DBO

Increase in

assumption/

change in DBO

Decrease in

assumption/

change in DBO

Increase in

assumption/

change in DBO

Interest rate 0.50 2.90 –2.75 3.91 –3.68

Remuneration increases

1.00 –5.61 6.12 –7.45 8.31

The sensitivity analysis was carried out separately for each key actuarial parameter. Only one parameter was changed at a time during the

examination, while the other variables remained constant (ceteris paribus). The method used to calculate the changed obligation reflected

the calculation of the actual obligation. The analytical capacity of this method is limited because the interdependencies between the

individual actuarial parameters are not taken into account. With respect to the severance compensation obligations, a sensitivity analysis

was not carried out for the remaining life expectancy because this parameter has only an immaterial effect on the liability .

Reconciliation of other non-current provisions

EURm

Service

anniversary

bonuses

Rents

for network

access

Process costs

and risks

Environmental

and disposal

risks

Other

non-current

provisions Total

Carrying amount

01.10.2022

20.5 6.5 3.1 42.3 1.9 74.3

Interest expense

0.8 – 0.2 0.4 – 1.4

Use

–1.6 – –0.2 – – –1.9

Release

– –0.1 –2.0 –0.2 –0.2 –2.4

Additions

1.3 0.5 0.8 8.6 0.5 11.8

Reclassification

– –0.1 0.4 5.8 2.2 8.2

Change in scope of consolidation 0.1 – – – 1.7 1.7

Carrying amount 30.09.2023

21.0 6.8 2.3 57.0 6.0 93.1

Rents for network access involve provisions for rents to gain access to third-party facilities in Bulgaria. Various legal proceedings and

lawsuits, which for the most part arise from operating activities and are currently pending, are reported under process costs and risks.

Environmental and disposal risks primarily encompass the estimated costs for demolition or disposal as well as provisions for environ-

mental risks and risks related to contaminated sites. At the present time, the use of the provisions for environmental and disposal risks

is expected within a timeframe of one to 19 years. Reclassifications consist chiefly of a transfer from the current to the non-current

section due to the adjustment of estimates for the time required to meet renaturation obligations.

82EVN Annual Financial Report 2022 / 23

53. Deferred income from network subsidies

The investment subsidies are related primarily to heating plants, facilities operated by EVN Wasser, small hydropower plants and wind

power plants operated by EVN Naturkraft and facilities operated by network companies.

Deferred income from network subsidies

EURm

Network subsidies

(IFRS 15)

Baukosten zuschüsse

(regulierter Bereich)

Investment

subsidies Total

Carrying amount 01.10.2022

56.1 515.0 60.2 631.3

Additions 12.5 97.3 11.7 121.5

Reclassification –6.5 –58.1 –5.0 –69.5

Carrying amount 30.09.2023

62.1 554.2 66.9 683.3

54. Other non-current liabilities

Other non-current liabilities

EURm 30.09.2023 30.09.2022

Liabilities from derivative transactions

8.4 63.2

Leasing liabilities 71.3 55.4

Remaining other non-current liabilities 9.3 19.2

Total

89.1 137.8

The liabilities from derivative transactions include the negative fair values from contracts in the energy sector and from forward exchange

transactions in connection with the international project business.

The remaining other non-current liabilities include accrued long-term electricity delivery obligations, accrued liabilities for contract costs

incurred and long-term compensation payments received.

Term to maturity of other non-current liabilities

EURm

Remaining term to maturity as of 30.09.2023 Remaining term to maturity as of 30.09.2022

< 5 years > 5 years Total < 5 years > 5 years Total

Liabilities from derivative transactions 8.4 – 8.4 63.2 – 63.2

Leasing liabilities 22.4 48.9 71.3 18.4 36.9 55.4

Remaining other non-current liabilities 5.9 3.3 9.3 16.5 2.7 19.2

Total

36.8 52.3 89.1 98.1 39.7 137.8

83EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of financial position

Current liabilities

55. Current loans and borrowings

Bank overdrafts are included under cash and cash equivalents in the consolidated statement of cash flows.

Current loans and borrowings

EURm 30.09.2023 30.09.2022

Bonds

77.8 –

Bank loans 215.4 122.4

Bank overdrafts and other current loans 50.0 255.1

Total

343.2 377.4

Bonds amounting to EUR 77.8m (previous year: EUR 0.0m) and loans amounting to EUR 293.2m (previous year: EUR 122.4m) were

reclassified to current financial liabilities as they are due within the next twelve months.

56. Trade payables

Trade payables include obligations resulting from outstanding invoices amounting to EUR 149.0m (previous year: EUR 128.8m) .

57. Current provisions

Reconciliation of current provisions

EURm

Personnel

entitlements

Rents for

network

access Process risks

Other current

provisions Total

Carrying amount 01.10.2022

83.1 2.7 2.2 47.5 135.5

Change in the scope of consolidation – – – 9.3 9.3

Use –12.5 – –0.4 –13.5 –26.4

Release –0.1 – – –11.6 –11.7

Additions 18.8 – 0.2 16.6 35.5

Reclassification –2.2 0.1 –0.4 –5.4 –7.9

Carrying amount 30.09.2023

87.1 2.9 1.6 42.9 134.4

The provisions for personnel entitlements comprise special payments not yet due, outstanding leave and liabilities resulting from a

voluntary early retirement programme for employees. The provisions for legally binding agreements totalled EUR 3.5m as of the balance

sheet date (previous year: EUR 7.7m).

Provisions for contingent losses of EUR 24.2m (previous year: EUR 31.4m) were formed in connection with business activities in the

context of the planning and construction of environmental infrastructure projects. The provisions result from contractual obligations.

84EVN Annual Financial Report 2022 / 23

58. Other current liabilities

Other current liabilities

EURm 30.09.2023 30.09.2022

Financial liabilities

Liabilities to investments in equity accounted investees 28.8 129.7

Liabilities to non-consolidated subsidiaries 12.4 7.3

Deferred interest expenses 14.5 12.1

Liabilities arising from derivative transactions 30.6 231.3

Leasing liabilities 8.8 6.4

Other financial liabilities 176.9 122.5

272.2 509.3

Other liabilities

Contract liabilities 29.2 39.5

Prepayments received 64.6 62.6

Deferred income from network subsidies 67.7 63.0

Liabilities relating to social security 13.6 16.5

Energy taxes 0.9 4.0

Value added tax 14.3 8.0

Other taxes and duties 34.7 17.7

224.9 211.3

Total

497.1 720.7

The liabilities to investments in equity accounted investees consist primarily of cash pooling balances between EVN AG and these

companies as well as amounts due to EnergieAllianz for the distribution and procurement of electricity.

Liabilities from derivative transactions include negative market values of derivatives in the energy sector, cross-currency swaps for hedging

the JPY bond and forward exchange transactions for environmental infrastructure projects .

Other financial liabilities include, in particular, liabilities related to capitalised contract costs, energy deferrals, liabilities to employees and

deposits received.

Contract liabilities mainly relate to advance payments received from customers from the international project business for which revenue

was recognised over a certain period of time. The contract liabilities of EUR 38.7m reported in the previous year were recognized as

revenue in the 2022/23 financial year.

85EVN Annual Financial Report 2022 / 23

Consolidated notes — Notes to the consolidated statement of financial position, Segment reporting

Segment reporting

EURm Energy Generation Networks South East Europe

2022/23 2021/22 2022/23 2021/22 2022/23 2021/22 2022/23 2021/22

External revenue

1,015.9 750.6 132.8 159.5 564.5 517.3 1,499.7 2,002.4

Internal revenue (between segments)

19.3 13.4 349.2 264.5 73.4 63.4 1.6 1.6

Total revenue

1,035.2 764.1 481.9 424.0 637.9 580.7 1,501.2 2,003.9

Operating expenses

–859.9 –797.1 –224.2 –141.9 –402.6 –344.2 –1,261.8 –1,861.7

Share of results from equity

accounted investees operational

–238.8 6.4 42.7 10.8 – – – –

EBITDA

–63.6 –26.7 300.4 292.9 235.4 236.5 239.4 142.2

Depreciation and amortisation

–26.6 –28.0 –45.4 –32.6 –156.8 –177.7 –79.9 –94.3

thereof impairment losses

–5.8 –6.8 –1.1 – – –32.9 – –16.7

thereof revaluation

1.6 – – 9.6 – – – –

Results from operating activities

(EBIT)

–90.1 –54.7 255.0 260.3 78.6 58.8 159.5 48.0

EBIT margin (%)

–8.7 –7.2 52.9 61.4 12.3 10.1 10.6 2.4

Interest income

– – 6.3 0.4 0.5 0.2 2.9 –

Interest expense

–4.3 –2.7 –4.5 –3.0 –22.4 –14.8 –12.4 –12.1

Financial results

–4.7 –2.7 2.3 –2.4 –21.8 –14.5 –10.0 –12.5

Result before income tax

–94.8 –57.3 257.3 257.9 56.8 44.4 149.6 35.4

Goodwill

– – 1.2 1.2 1.8 1.8 – –

Carrying value of investments in

equity accounted investees

37.7 1,404.3 239.7 208.6 – – – –

Total assets

674.0 1,914.1 1,193.3 990.9 2,562.7 2,313.3 1,402.7 1,388.6

Total liabilities

464.2 993.3 442.4 398.0 1,838.6 1,601.4 895.4 1,013.4

Investments

63.6 43.0 121.7 56.6 356.0 334.3 135.5 110.0

1) In intangible assets and property, plant and equipment

86EVN Annual Financial Report 2022 / 23

Segment reporting

EURm Environment All Other Segments Consolidation

Total

2022/23 2021/22 2022/23 2021/22 2022/23 2021/22 2022/23 2021/22

External revenue

531.4 611.8 24.5 20.6 – – 3,768.7 4,062.2

Internal revenue (between segments)

0.7 0.5 83.9 75.7 –528.1 –419.0 – –

Total revenue

532.2 612.3 108.4 96.3 –528.1 –419.0 3,768.7 4,062.2

Operating expenses

–488.4 –571.3 –120.1 –106.0 524.8 415.9 –2,832.1 –3,406.3

Share of results from equity

accounted investees operational

18.3 15.6 110.2 66.2 – – –67.6 98.9

EBITDA

62.2 56.5 98.5 56.5 –3.4 –3.2 869.0 754.8

Depreciation and amortisation

–32.7 –91.4 –2.5 –2.4 3.4 3.2 –340.4 –423.2

thereof impairment losses

–0.3 –58.4 – – – – –7.1 –114.8

thereof revaluation

1.6 – – – – – 3.2 9.6

Results from operating activities

(EBIT)

29.5 –34.9 96.0 54.0 – – 528.5 331.6

EBIT margin (%)

5.5 –5.7 88.6 56.1 – – 14.0 8.2

Interest income

2.6 1.3 47.7 24.8 –43.5 –21.3 16.5 5.4

Interest expense

–20.2 –8.1 –37.0 –18.3 43.5 21.2 –57.4 –37.9

Financial results

–20.9 –45.5 200.6 62.6 –17.9 –15.5 127.6 –30.5

Result before income tax

8.6 –80.3 296.6 116.6 –17.9 –15.5 656.2 301.2

Goodwill

– – – – – – 3.0 3.0

Carrying value of investments in

equity accounted investees

170.8 172.8 655.2 602.4 – – 1,103.4 2,388.0

Total assets

1,072.0 1,150.9 6,195.2 6,575.2 –2,103.8 –1,902.4 10,996.0 12,430.5

Total liabilities

849.3 934.6 2,075.7 2,001.4 –2,033.9 –1,832.6 4,531.6 5,109.3

Investments

22.9 21.4 1.8 2.1 –7.4 –3.5 694.1 564.0

1) Explained below in the notes to segment reporting

2) In intangible assets and property, plant and equipment

87EVN Annual Financial Report 20 22 / 23

Consolidated notes — Segment reporting

Segment information by product – revenue

EURm 2022/23 2021/22

Electricity

2,462.5 2,878.4

Natural gas 304.0 170.9

Heat 252.8 198.9

Environmental services 525.3 604.3

Others 224.1 209.7

Total

3,768.7 4,062.2

Segment information by country – revenue

EURm 2022/23 2021/22

Austria

1,777.4 1,483.6

Germany 458.4 534.5

Bulgaria 934.9 1,320.6

North Macedonia 562.2 684.3

Others 35.7 39.2

Total

3,768.7 4,062.2

1) The allocation of segment information by countries is based on the location of the companies.

Segment information by country –

non-current assets

EURm 30.09.2023 30.09.2022

Intangible

assets

Property, plant

and equipment

Intangible

assets

Property, plant

and equipment

Austria 181.9 3,270.1 163.9 2,941.7

Germany 0.7 9.9 0.8 11.5

Bulgaria 10.9 565.1 11.9 539.4

North Macedonia 12.8 385.4 14.3 353.9

Others 4.9 55.1 – 34.0

Total

211.2 4,285.7 190.9 3,880.4

1) The allocation of segment information by countries is based on the location of the companies.

88EVN Annual Financial Report 2022 / 23

59. Notes to segment reporting

The segments of business cover the following activities:

Business areas Segments Major activities

Energy business Energy

• Marketing of electricity produced in the Generation Segment

• Procurement of electricity, natural gas and primary energy carriers

• Trading with and sale of electricity and natural gas to end customers

and on wholesale markets

• Production and sale of heat

• 45.0% investment in EnergieAllianz

• Investment as sole limited partner in EVN KG

Generation

• Generation of electricity from renewable energy and thermal

production capacities for network stabilisation at Austrian and

international locations

• Operation of a thermal waste utilisation plant in Lower Austria

• 13.0% investment in Verbund Innkraftwerke (Germany)

• 49.99% investment in Ashta run-of-river power plant (Albania)

Networks

• Operation of distribution networks and network infrastructure for

electricity and natural gas in Lower Austria

• Cable TV and telecommunication services in Lower Austria and

Burgenland

South East Europe

• Operation of distribution networks and network infrastructure

for electricity in Bulgaria and North Macedonia

• Sale of electricity to end customers in Bulgaria and North Macedonia

• Generation of electricity from hydropower and photovoltaics in

North Macedonia

• Generation, distribution and sale of heat in Bulgaria

• Construction and operation of natural gas networks in Croatia

• Energy trading for the entire region

Environmental services

business

Environment

• Water supply and wastewater disposal in Lower Austria

• International project business: planning, construction, financing

and/or operation (depending on the project) of plants for

drinking water supplies, wastewater treatment and thermal

waste utilisation

Other business activities

All Other Segments

• 50.03% investment in RAG-Beteiligungs-Aktiengesellschaft,

which holds 100% of the shares in RAG

• 73.63% investment in Burgenland Holding, which holds

a stake of 49.0% in Burgenland Energie

• 12.63% investment in Verbund AG

• Corporate services

1) The earnings contribution represents the share of results from equity accounted investees with operational nature and is included in EBITDA.

2) A structured sales process was initiated for the international project business in September 2023.

3) Dividends are included under financial results.

89EVN Annual Financial Report 2022 / 23

Consolidated notes — Segment reporting

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 broken down by products and services) and

countries (external revenues and non-current assets broken down by countries) if this information is not already 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.

90EVN Annual Financial Report 2022 / 23

Other information

60. Consolidated statement of cash flows

The consolidated statement of cash flows shows the changes in cash and cash equivalents during the reporting year as a result of cash

inflows and outflows. The consolidated statement of cash flows is presented in accordance with the indirect method. Non-cash expenses

were added to and non-cash income was subtracted from profit before income tax .

Cash and cash equivalents

EURm 30.09.2023 30.09.2022

Cash

70.2 292.0

thereof cash on hand 0.1 0.1

thereof cash at banks 70.1 291.9

Bank overdrafts –50.0 –255.1

Total

20.2 36.9

As of 30 September 2023, EUR 27.7m (previous year: EUR 16.8m) were subject to disposal restrictions and were reclassified from cash and

cash equivalents (also see notes 42. Securities and other financial investments and 43. Assets and liabilities held for sale) .

Network subsidies from the regulated business are released to other operating income (see also note 26. Other operating income),

and those from the non-regulated business to revenue .

Reversal of network and investment subsidies

EURm 2022/23 2021/22

Income from the reversal of network and investment subsidies (regulated business) 58.3 53.3

Revenue from the reversal of network subsidies (non-regulated business) 5.8 5.5

Total 64.1 58.8

The change in financial liabilities, which is primarily attributable to cash flow from financing activities, is shown in the following table:

Cash flow from financing activities

2022/23 financial year

EURm

Current financial

liabilities

Non-current financial

liabilities Leasing liabilities Total

Balance on 01.10.2022 377.4 1,150.8 61.8 1,590.0

Payments received – 256.7 – 256.7

Payments made –122.4 –1.3 –11.8 –135.5

Reclassification of liquid funds –205.1 – – –205.1

Currency translation – –0.1 – –0.1

Change in fair value – –9.9 – –9.9

Change in costs for the procurement of funds

– 0.4 – 0.4

Other changes – – 30.2 30.2

Reclassifications 293.2 –293.2 – –

Balance on 30.09.2023 343.2 1,103.5 80.2 1,526.8

91EVN Annual Financial Report 2022 / 23

Consolidated notes — Other information

Cash flow from financing activities

2021/ 22 financial year

EURm

Current financial

liabilities

Non-current financial

liabilities Leasing liabilities Total

Balance on 01.10.2021 318.0 718.9 60.6 1,097.5

Payments received – 562.0 – 562.0

Payments made –317.8 –2.9 –6.9 –327.6

Reclassification of liquid funds 254.9 – – 254.9

Currency translation – 1.8 – 1.8

Change in fair value – –8.3 – –8.3

Change in costs for the procurement of funds

– 1.6 – 1.6

Other changes – – 8.1 8.1

Reclassifications 122.4 –122.4 – –

Balance on 30.09.2022 377.4 1,150.8 61.8 1,590.0

61. Risk management

Market risk represents the risk that the fair value or future cash flows of a financial instrument fluctuate as the result of market risk factors.

Market risk is classified in the following three components: interest rate, foreign exchange and other market risks. The goal of risk manage-

ment in the EVN Group is to reduce the market-based volatility of earnings on the consolidated statement of operations. To manage market

risks, the Group acquires and sells derivatives and also enters into financial liabilities. Wherever possible, hedging transactions should be

recognised in order to manage earnings volatility. Other relevant risks include credit or default risk and liquidity risk.

Interest rate risk

EVN defines interest rate risk as the risk that fluctuations in the fair value or future cash flows of a financial instrument due to changes in

the market interest rate could adversely affect interest income and expense as well as equity. This risk is minimised through the regular

monitoring of interest rate risk and compliance with limits as well as hedging strategies that include the use of derivative financial instru-

ments (also see notes 9. Financial instruments and 63. Reporting on financial instruments).

EVN monitors interest rate risk through sensitivity analyses and, among others, with a daily value-at-risk (VaR) calculation. This procedure

calculates the VaR with a confidence level of 99.0% for one day according to the variance-covariance method (delta-gamma approach).

The interest VaR, including the hedging instruments used by EVN, equalled EUR 6.5m as of 30 September 2023 (previous year: EUR 10.7m).

The decrease noted here is essentially due to slightly lower loans and bonds outstanding and the decreased volatility on the interest markets.

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 (i. e. BGN, BHD, CZK, JPY, KWD, MKD, PLN, RUB). The major driver of foreign exchange risk for EVN is

a bond issued in Japanese yen (JPY). 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 currency (JPY 12bn) through cross-currency swaps (for a nominal value

of JPY 10bn). Cross-currency swaps for a nominal value of JPY 2bn were terminated on 15 January 2019 based on the related settlement

agreement concluded with a bank. This agreement gave both parties the right to early termination of the cross-currency swap in January 2019.

Deposits totalling JPY 2bn were held with financial institutions as at the balance sheet date to hedge foreign exchange risk (see notes

9. Financial instruments and 50. Non-current loans and borrowings).

92EVN Annual Financial Report 2022 / 23

Another material driver for foreign exchange risk is the Umm Al Hayman wastewater treatment project in Kuwait. The EVN Group serves

as the general contractor and, as such, is responsible for the planning and construction, above all, of a wastewater treatment plant

( contract value: approximately EUR 600m, converted) and – together with partners – of a sewage network with pumping stations

( contract value: approximately EUR 950m, converted). The Group is exposed to transactional foreign exchange risks to the extent that

the currencies for settlement of the project transactions differ from the Group’s functional currency. These transactions are carried out

chiefly in euro (EUR), US dollar (USD) and Kuwaiti dinar (KWD). In accordance with the relevant Group guideline, foreign exchange risks

from expected project transactions are hedged over the next twelve months. This practice can vary for large-scale projects, where

hedging can also extend beyond the twelve-month period. Forward exchange transactions are used to hedge currency risk and formally

designated in macro-cash flow accounting. These contracts are principally designated as cash flow hedges.

The EVN Group is expanding an existing sewage treatment plant in Bahrain and building a sewage sludge incineration plant. As with the

project in Kuwait, the company is also exposed to currency risks in Bahrain. Forward exchange transactions were concluded to hedge the

highly probable expected net cash flows. The transactions are carried out on the basis of euros (EUR) and Bahraini dinars (BHD).

In previous years, EVN used forward exchange contracts to hedge the exchange rate for the project, but measured these at fair value.

In the 2022/23 financial year, EVN decided to implement a cash flow hedge as for the project in Kuwait. In this respect, newly concluded

forward exchange contracts, which were concluded to hedge the highly probable net payments in BHD, were designated as hedging

instruments.

The foreign exchange VaR, based on the major foreign currency risk drivers in the financial area amounted to EUR 0.2m as of 30 Septem-

ber 2023 (previous year: EUR 1.6m) after the inclusion of hedging instruments. The decrease is mainly due to the abovementioned use of

forward exchange contracts as cash flow hedges in the Bahrain project.

Other market risks

EVN defines other market risks as the risk of price changes resulting from market fluctuations in primary energy, CO

emission certificates,

electricity 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 and CO

emission certificates.

EVN uses futures, forwards and swaps to hedge the prices of the primary energy carriers electricity, natural gas and CO

emission

certificates in the energy business. These swaps are generally fulfilled. The contracts which cover expected procurement, sale or usage

requirements are evaluated as own-use transactions (also see note 63. Reporting on financial instruments). An increase or decrease

of 5% in the price would have resulted in an aggregated commodity price risk of EUR 2.7m for EVN as of 30 September 2023 (previous

year: EUR 3.0m).

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 145.7m

(previous year: EUR 272.0m), whereby the price would be influenced by the sale of a large block of Verbund shares by EVN. The decrease

in VaR compared to the last balance sheet date is essentially due to the stable development of the stock market price of the shares of

Verbund AG in the past financial year.

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

medium- term financial and liquidity 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.

93EVN Annual Financial Report 2022 / 23

Consolidated notes — Other information

The liquidity reserve as of 30 September 2023 comprised cash and cash equivalents of EUR 70.2m (previous year: EUR 292.0m), short-term

time deposits of EUR 12.6m (previous year: EUR 14.4m) and current securities of EUR 216.8m (previous year: EUR 193.3m) which can be sold

at any time. Moreover, EVN had EUR 400.0m in a contractually agreed and unused syndicated line of credit (previous year: EUR 400.0m)

and EUR 286.0m (previous year: EUR 227.0m) of contractually agreed and unused bilateral lines of credit as of the balance sheet date. The

liquidity risk was therefore extremely low. The gearing ratio equalled 21.1% as of the balance sheet date (previous year: 17.0%) and

underscores EVN’s sound capital structure.

Expected occurrence of cash flows of loans and borrowings

and other liabilities

30.09.2023

EURm

Carrying

amount

Total

payment flows

Contractually stipulated payment flows

< 1 year 1– 5 years > 5 years

Bonds

547.3 719.0 93.7 58.6 566.7

Bank loans 927.1 980.2 234.7 259.1 486.4

Lease liabilities 80.2 96.6 9.4 27.8 59.4

Liabilities arising from derivative transactions

39.1 42.3 33.2 9.1 –

Liabilities from contract costs 15.5 15.5 15.5 – –

Total

1,531.4 1,853.6 386.5 354.6 1,112.5

30.09.2022

EURm

Carrying

amount

Total

payment flows

Contractually stipulated payment flows

< 1 year 1– 5 years > 5 years

Bonds

556.7 736.6 15.9 141.9 578.7

Bank loans 716.4 812.0 136.0 279.3 396.8

Lease liabilities 61.8 69.7 7.0 20.8 41.9

Liabilities arising from derivative transactions

294.4 326.6 268.9 57.7 –

Liabilities from contract costs 20.6 20.6 14.1 6.5 –

Total

1,650.0 1,965.4 441.8 506.2 1,017.4

1) Forward exchange transactions (USD/KWD) are included in the carrying amount. Cash flows from forward exchange transactions,

however, are shown in the tables on page 105 in the respective foreign currency .

All financial liabilities not shown in the table are current and the associated cash flows are therefore due within one year.

Credit and default risk

Credit and default risk represents the risk of a loss when business partners fail to meet their contractual obligations. This risk is inherent

to all agreements with delayed payment terms or fulfilment at a later date. Default risk generally arises in connection with trade receivables

and the debt instruments held as financial assets by the Group. The carrying amount of the financial assets and contractual assets represents

the maximum default risk.

To limit default risk, the company evaluates the credit standing of its business partners. Internal and external ratings (including Standard &

Poor’s, Moody’s, Fitch and KSV 1870) are used for this purpose, and the business volume is limited in accordance with the rating and the

probability of default. Sufficient collateral is required before a transaction is entered into if the partner’s credit rating is inadequate.

EVN monitors credit risk and limits default risk for financial receivables 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 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 .

94EVN Annual Financial Report 2022 / 23

The default risk for customers is monitored separately at EVN and supported primarily by ratings and experience-based values. Default risk

is also minimised with efficient receivables management and the continuous monitoring of customer payment behaviour.

The recognition of impairment losses to financial assets carried at amortised cost and to contractual assets in accordance with IFRS 15 has

been based on the ECL model for expected credit losses since 1 October 2018. EVN measures the impairment losses for trade receivables

without a significant financing component and for contractual assets at an amount equal to the expected lifetime credit losses. In contrast,

the impairment losses

• for financial assets with a low default risk as of the balance sheet date and

• for bank deposits without a significant increase in the default risk since initial recognition are based on the expected

twelve-month credit loss.

From the viewpoint of the EVN Group, a financial asset has a low default risk when its credit rating meets the “investment grade” definition.

The Group sees this condition as met with an internal rating of 5a or higher or with an equivalent rating of BB– or higher from Standard

and Poor‘s (S&P).

EVN uses appropriate and reliable information which is relevant and available without undue expenditure of time and expense to determine

whether the default risk of a financial asset has increased significantly since initial recognition and to estimate the expected credit losses.

The default risk of a financial asset is assumed to have increased significantly when the related credit rating has declined to 5b on EVN’s

internal rating scale, which represents the S&P equivalent of B+.

The EVN Group considers a financial asset to be in default when:

• the debtor is unlikely to meet his/her credit obligations in full without measures by the Group to realise collateral (if available), or

• the financial asset declines to 5c on EVN’s internal rating scale, which represents the S&P equivalent of CCC+, or

• payment on trade receivables has not been received after a second reminder or insolvency proceedings are opened over a company

or private person.

Default probabilities and collection rates based on the applicable rating category are used to calculate the required impairment loss.

The amount of the impairment loss equals the present value of the expected credit loss.

The following table includes information on the default risk and expected credit losses for financial instruments carried at amortised cost.

It does not cover trade receivables, receivables from equity accounted investees, receivables from unconsolidated investments or amounts

due from employees. The risk allowance for all financial instruments represents the expected twelve-month credit loss because the

default risk is low. The amounts shown in the table include both current and non-current components.

95EVN Annual Financial Report 20 22 / 23

Consolidated notes — Other information

Major financial instruments covered by the ECL model

2022/23 financial year

EURm

Equivalent S&P

Default

probability (%)

Loans

receivable

Lease

receivables Bank deposits

2) 3)

Calculated

impairment

EVN rating class 1

AAA – – 7.4 93.1 –

EVN rating class 2 Up to AA– 0.03 – – – –

EVN rating class 3 Up to A– 0.05 19.4 4.9 – –

EVN rating class 4 Up to BBB– 0.22 9.2 – – –

EVN rating class 5a Up to BB– 0.91 – – – –

EVN rating class 5b Up to B– 5.53 – – – –

EVN rating class 5c Up to D 24.70 – – – –

No rating – – 0.9 – – –

Total

29.5 12.3 93.1 –

1) Assumed loss ratio (60% for banks, 80% for corporates)

2) Due to the daily maturity, a one-day probability of default is applied to account balances;

for money market deposits, the PoD of the average volume-weighted residual term is taken into account.

3) Bank balances also include restricted cash in the amount of EUR 22.9m.

4) The calculated impairments are not recognised in the balance sheet due to their minor magnitude.

Major financial instruments covered by the ECL model

2021/ 22 financial year

EURm

Equivalent S&P

Default

probability (%)

Loans

receivable

Lease

receivables Bank deposits

2) 3)

Calculated

impairment

EVN rating class 1

AAA – – 3.3 301.3 –

EVN rating class 2 Up to AA– 0.03 – 10.8 – –

EVN rating class 3 Up to A– 0.06 17.2 – – –

EVN rating class 4 Up to BBB– 0.30 11.0 – – –

EVN rating class 5a Up to BB– 1.45 – – – –

EVN rating class 5b Up to B– 7.47 – – – –

EVN rating class 5c Up to D 9.87 – – – –

No rating – – 1.2 – – –

Total

29.4 14.1 301.3 –

1) Assumed loss ratio (60% for banks, 80% for corporates)

2) Due to the daily maturity, a one-day probability of default is applied to account balances;

for money market deposits, the PoD of the average volume-weighted residual term is taken into account.

3) Bank balances also include restricted cash in the amount of EUR 9.3m.

4) The calculated impairments are not recognized in the balance sheet due to their minor magnitude.

EVN uses the practical expedient provided by IFRS 9.B5.5.35 for trade receivables and calculates the expected credit losses with a provision

matrix. The input factors include analyses of default incidents in previous financial years based on different regional characteristics for the

core markets. These factors form the basis for the development of a provision matrix with different time ranges.

In the current situation, it is particularly important to evaluate how the macroeconomic environment will influence the expected credit

losses on trade receivables. The economic developments in recent years did not lead to a sharp rise in receivables defaults by customers,

in particular because of numerous government support measures. However, this has currently been reflected in an increasing number of

insolvencies in Europe, and we expect higher receivables defaults in the future. For this reason, the EVN Group recognised a EUR 5.0m

(previous year: EUR 6.1m) higher impairment loss to trade receivables for the 2022/23 financial year via a forward-looking component .

96EVN Annual Financial Report 2022 / 23

The following tables include information on the default risk and expected credit losses for trade receivables, which were determined on

the basis of a provision matrix for EVN’s core markets:

Expected credit losses in Austria 2022/23

EURm

Default probability

range (%)

Default probability

average (%) Gross amount Net amount

Cumulative

impairment loss

Not overdue 0.0 – 0.1 – 98.6 98.6 –

Up to 89 days overdue 0.1 – 0.6 1.1 7.9 7.8 0.1

Up to 179 days overdue 4.6 – 19.7 13.6 1.9 1.6 0.3

Up to 359 days overdue 7.9 – 55.2 18.9 2.7 2.2 0.5

> 360 days overdue 15.5 – 100.0 38.6 11.0 6.8 4.3

Total

122.2 117.0 5.2

Expected credit losses in Austria 2021/ 22

EURm

Default probability

range (%)

Default probability

average (%) Gross amount Net amount

Cumulative

impairment loss

Not overdue 0 .0 –1.2 – 44.2 44.2 –

Up to 89 days overdue 0.1–1.2 1.5 6.0 5.9 0.1

Up to 179 days overdue 5.5– 56.0 29.4 2.2 1.5 0.6

Up to 359 days overdue 7.9– 55.2 34.3 2.4 1.5 0.8

> 360 days overdue 17.6 –100 38.1 8.8 5.5 3.4

Total

63.5 58.6 4.9

Expected credit losses in Bulgaria 2022/23

EURm

Default probability range

(%)

Default probability

average (%) Gross amount Net amount

Cumulative

impairment loss

Not overdue 0.0 – 0.5 0.13 53.4 53.3 0.1

Up to 89 days overdue 3.0 – 42.3 8.23 5.9 5.3 0.5

Up to 179 days overdue 31.7 – 54.9 39.75 1.2 0.7 0.5

Up to 359 days overdue 63.6 – 98.1 88.96 1.7 0.2 1.5

> 360 days overdue 100.0 100.00 13.6 – 13.6

Total

75.7 59.6 16.1

Expected credit losses in Bulgaria 2021/ 22

EURm

Default probability range

(%)

Default probability

average (%) Gross amount Net amount

Cumulative

impairment loss

Not overdue 0.1–1.0 0.22 51.6 51.5 0.1

Up to 89 days overdue 1.0 – 57.6 4.01 8.5 8.1 0.3

Up to 179 days overdue 59.3–77.7 65.14 0.8 0.3 0.5

Up to 359 days overdue 75.4 – 98.5 86.71 1.1 0.1 0.9

> 360 days overdue 100.0 100.00 13.3 – 13.3

Total

75.2 60.1 15.1

97EVN Annual Financial Report 2022 / 23

Consolidated notes — Other information

Expected credit losses in North Macedonia 2022/23

EURm

Default probability range

(%)

Default probability

average (%) Gross amount Net amount

Cumulative

impairment loss

Not overdue 0.4 – 100.0 50.25 126.0 62.7 63.3

thereof instalment agreements 17.5 – 100.0 83.90 71.9 11.6 60.3

thereof without instalment

agreements

0.4 – 36.6 5.51 54.1 51.1 3.0

Up to 89 days overdue 2.4 – 100.0 13.29 23.2 20.1 3.1

Up to 179 days overdue 42.3 – 100.0 81.39 6.6 1.2 5.4

Up to 359 days overdue 52.6 – 100.0 96.61 14.2 0.5 13.7

> 360 days overdue 100.0 100.00 156.1 – 156.1

Total

326.2 84.5 241.7

Expected credit losses in North Macedonia 2021/ 22

EURm

Default probability range

(%)

Default probability

average (%) Gross amount Net amount

Cumulative

impairment loss

Not overdue 0.4 –100 39.98 123.9 74.4 49.6

thereof instalment agreements 17.5 –100.0 76.43 58.3 13.7 44.6

thereof without instalment

agreements

0.4 – 36.6 7.60 65.6 60.6 5.0

Up to 89 days overdue 2.4 –100.0 9.11 59.9 54.5 5.5

Up to 179 days overdue 42.3 –100.0 88.93 10.9 1.2 9.7

Up to 359 days overdue 52.6 –100.0 97.04 16.1 0.5 15.7

> 360 days overdue 100.0 100.00 168.5 – 168.5

Total

379.4 130.5 248.9

The overview of expected credit losses in North Macedonia includes both current and non-current trade receivables. Following the

conclusion of instalment agreements with customers in North Macedonia, existing trade receivables were reclassified as non-current.

These receivables are not considered part of overdue receivables and, consequently, this category carries a higher average probability

of default than the category “up to 89 days overdue”.

The remaining gross trade receivables of EUR 102.8m (previous year: EUR 84.4m) are related primarily to the international project business.

Since the customers are mainly government-related entities, the probability of default was calculated on the basis of external ratings.

Impairments totalling EUR 23.7m (previous year: EUR 18.1m) were recognised for receivables with a gross carrying amount of EUR 70.7m

(previous year: EUR 59.6m) that fall into Level 3.

In financial year 2022/23, impairments of EUR 20.7m (previous year: EUR 38.0m) were recognised for trade receivables. The impairments

mainly resulted from expected credit losses under consideration of a provision matrix. As in the previous year, no impairment of contract

assets was necessary.

98EVN Annual Financial Report 2022 / 23

The following table shows the development of impairment losses to trade receivables in 2022/23:

Impairment losses – trade receivables

EURm 2022/23 2021/22

Balance on 01.10.

287.1 255.0

Additions

20.7 38.0

Disposal

–21.1 –6.0

Balance on 30.09.

286.7 287.1

The Group’s maximum default risk for the items reported on the consolidated statement of financial position as of 30 September 2023

and 30 September 2022 reflect the carrying amounts shown in notes 39. Other non-current assets, 41. Trade and other receiv ables

and 42. Securities and other financial investments, excluding financial guarantees.

The maximum default risk for derivative financial instruments equals the positive fair value (see note 63. Reporting on financial

instruments).

The maximum risk from financial guarantees is described in note 65. Other obligations and risks.

62. 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. EVN has defined an equity ratio of more than 40% and net debt coverage of

more than 50% as its targets. As of 30 September 2023, the equity ratio equalled 58.8% (previous year: 58.9%). Net debt coverage,

which represents the ratio of funds from operations to net debt, equalled 79.4% (previous year: 55.8%). Net debt is calculated as the

total of current and non-current financial liabilities minus cash and cash equivalents, current and non-current securities and loans receiv-

able, plus non-current personnel provisions.

Capital management

EURm 30.09.2023 30.09.2022

Non-current loans and borrowings and leasing liabilities

1,174.8 1,206.1

Current loans and borrowings

302.0 128.8

Cash and cash equivalents –20.2 –36.9

Non-current and current securities –337.5 –285.6

Non-current and current loans receivable –29.5 –29.4

Net financial debt

1,089.7 983.1

Non-current personnel provisions

274.6 262.0

Net debt

1,364.3 1,245.1

Funds from operations

1,082.9 694.1

Equity

6,464.3 7,321.1

Gearing (%)

21.1 17.0

Net debt coverage (%)

79.4 55.8

1) Excluding bank overdrafts contained in cash and cash equivalents

2) Excluding provisions for service anniversary bonuses

The EVN Group uses cash pooling to manage liquidity and optimise interest rates. EVN AG and each of the participating Group subsidiaries

have concluded a corresponding contract that defines the modalities for cash pooling.

99EVN Annual Financial Report 2022 / 23

Consolidated notes — Other information

63. Reporting on financial instruments

Fair value generally reflects the listed price on the balance sheet date. If this price is not available, fair value is calculated in accordance

with financial methods, e. g. by discounting the expected cash flows at the prevailing market interest rate. The input factors required for

the calculations are explained below.

The fair value of shares in unlisted subsidiaries and other investments is based on discounted expected cash flows or comparable transac-

tions. For financial instruments listed on an active market, the trading price as of the balance sheet date represents fair value. Most of the

receivables, cash and cash equivalents, and current financial liabilities have short terms to maturity. Therefore, the carrying value of these

instruments as of the balance sheet date approximately corresponds to fair value. The fair value of bonds is calculated as the present value

of the discounted future cash flows based on prevailing market interest rates.

The following table shows the financial instruments carried at fair value and their classification in the fair value hierarchy according to IFRS 13.

Level 1 input factors are observable parameters such as quoted prices for identical assets or liabilities. These prices are used for valuation

purposes without modification. Level 2 input factors represent other observable parameters which must be adjusted to reflect the specific

characteristics of the valuation object. Examples of the parameters used to measure the financial instruments classified under Level 2 are

forward price curves derived from market prices, exchange rates, interest structure curves and the counterparty credit risk. Level 3 input

factors are non-observable factors which reflect the assumptions that would be used by a market participant to determine an appropriate

price. There were no reclassifications between the various levels during the reporting period .

100EVN Annual Financial Report 2022 / 23

I nformation on classes and categories of financial instruments

EURm

30.09.2023 30.09.2022

Classes

Measurement

category

Fair value

hierarchy

(according

to IFRS 13)

Carrying

amount Fair value

Carrying

amount Fair value

Non-current assets

Other investments

Investments FVOCI Level 3 167.4 167.4 190.3 190.3

Miscellaneous investments FVOCI Level 1 3,381.1 3,381.1 3,837.5 3,837.5

Other non-current assets

Securities FVTPL Level 1 71.0 71.0 68.8 68.8

Loans reveivable AC Level 2 25.0 24.1 25.1 24.4

Lease receivables AC Level 2 10.1 9.6 12.7 12.1

Receivables arising from derivative transactions FVTPL Level 2 11.7 11.7 – –

Trade and other receivables AC 25.3 25.3 13.9 13.9

Current assets

Current receivables and other current assets

Trade and other receivables AC 650.0 650.0 549.5 549.5

Receivables arising from derivative transactions FVTPL Level 2 69.1 69.1 27.0 27.0

Securities and other financial investments

FVTPL Level 1 266.5 266.5 216.8 216.8

Cash and cash equivalents

Cash on hand and cash at banks AC 70.2 70.2 292.0 292.0

Non-current liabilities

Non-current loans and borrowings

Bonds AC Level 2 469.5 393.5 556.7 480.1

Bank loans AC Level 2 633.9 599.4 594.0 552.7

Other non-current liabilities

Other liabilities AC 9.3 9.3 19.2 19.2

Liabilities arising from derivative transactions

FVTPL Level 2 8.2 8.2 63.2 63.2

Liabilities arising from derivative transactions

FVTPL Level 3 0.3 0.3 – –

Current liabilities

Current loans and borrowings

AC 343.2 343.2 377.4 377.4

Trade payables

AC 463.2 463.2 436.7 436.7

Other current liabilities

Other financial liabilities AC 241.6 241.6 278.1 278.1

Liabilities arising from derivative transactions FVTPL Level 2 24.3 24.3 231.3 231.3

Liabilities arising from derivative transactions FVTPL Level 3 6.3 6.3 – –

thereof aggregated to measurement categories

Fair value through other comprehensive income FVOCI 3,548.5 – 4,027.7 –

Financial assets designated at fair value through profit or loss

FVTPL 418.4 – 312.6 –

Financial

assets and

liabilities at amortised cost AC

2,941.3 – 3,155.4 –

Financial liabilities designated at fair value through profit or loss

FVTPL 39.1 – 122.1 –

1) See note 10. Other investments

101EVN Annual Financial Report 20 22 / 23

Consolidated notes — Other information

The above table with information on the classes and categories of financial instruments shows cash flow hedges (portfolio hedge –

electricity) together with derivative financial instruments that are carried at fair value through profit or loss. A separate presentation is

not possible due to the offsetting of derivative financial instruments based on conventional netting agreements in the energy business

(see note 9. Financial instruments). The valuation category FVTPL therefore includes positive fair values of EUR 71.5m (previous year:

EUR 24.3m) and negative fair values of EUR –1.9m (previous year: EUR –151.2m) which were measured at fair value through other com-

prehensive income (FVOCI).

Net results by measurement category

EURm 2022/23 2021/22

Classes Net result

Thereof

impairment losses Net result

Thereof

impairment losses

Fair value through other comprehensive income (FVOCI) – – – –

Financial assets at amortised cost (AC) –24.9 –20.8 –79.7 –52.7

Financial assets and liabilities at fair value through profit

or loss (FVTPL)

88.3 – –7.4 –

Financial assets and liabilities (hedging) –8.3 – –6.8 –

Financial liabilities at amortised cost (AC) 9.7 – 8.1 –

Total

64.8 –20.8 –85.8 –52.7

1) The net results only involve changes to the consolidated statement of operations; interest expense /income and dividends are not included .

Derivative financial instruments and hedging transactions

Derivative financial instruments are used primarily to hedge the company’s liquidity, exchange rate, price and interest rate risks. The operative

goal is to ensure the long-term continuity of the Group’s earnings. All derivative financial instruments are integrated in a risk management

system as soon as the respective contracts are concluded. This allows for the preparation of a daily overview of all main risk indicators.

The nominal values represent the separate totals of the items classified as financial derivatives on the balance sheet date. These are refer-

ence values which do not provide a measure of the risk incurred by the company through the use of these financial instruments. In particular,

potential risk factors include fluctuations in the underlying market parameters and the credit risk of the contracting parties. Derivative

financial instruments are recognised at their fair value.

102EVN Annual Financial Report 2022 / 23

Derivative financial instruments comprise the following:

Derivative

financial instruments

30.09.2023 30.09.2022

Nominal value

Fair values

Nominal value

Fair values

Purchases Disposals Positive Negative Net Purchases Disposals Positive Negative Net

Forward exchange

transactions

KWD

– 80.1 1.4 –12.3 –10.9 – 81.2 – –25.6 –25.6

USD

– 111.4 2.3 –3.4 –1.0 – 174.7 – –19.5 –19.5

BHD

– 8.4 – –0.6 –0.6 – – – – –

USD – – – – – – 40.0 –0.1 –0.1

BHD – 4.7 0.1 – 0.1 – 33.4 – –1.5 –1.5

KWD – 1.8 – – – – 3.5 – –0.2 –0.2

PLN – – – – – – 4.9 – – –

RON – 2.0 – – – – – – – –

Currency swaps

JPYm (>5 years)

10,000.0 – – –19.4 –19.4 10,000.0 – – –11.1 –11.1

Derivatives energy

Swaps – – – – – 36.0 –36.0 10.0 –8.4 1.6

Futures 1,257.6 2,347.7 12.7 –5.6 7.1 22.0 – – –0.4 –0.4

Forwards 436.9 411.2 16.4 –10.9 5.5 668.4 843.2 40.7 –92.6 –51.9

Futures

– 556.0 13.7 – 13.7 – – – – –

Forwards

19.9 365.4 57.8 –10.6 47.2 204.1 849.3 24.3 –183.0 –158.7

Recognition of offsetting

clauses

– – –23.6 23.6 – – – –48.1 48.1 –

Total after netting out – – 80.9 –39.1 41.2

– – 27.0 –294.4 –267.4

1) In m nominal currency; energy related in GWh

2) In EURm

3) Designated as a hedge in accordance with IFRS 9

Positive fair values are recognised as receivables from derivative transactions under other non-current assets or receivables and other

current assets, depending on their remaining term to maturity. Negative fair values are recognised as liabilities from derivative transactions

under other non-current liabilities or other current liabilities, depending on their remaining term to maturity. For counterparties with a

master agreement that includes an offsetting clause, the positive and negative fair values are presented as a net amount for specific periods

because of the applicable net settlement procedure. A maturity analysis of the derivative financial liabilities is provided in the table on

liquidity risk (see note 61. Risk management).

EVN uses hedges to manage earnings volatility. The underlying transaction and the hedge are designed to ensure a match between the

parameters relevant for measurement (critical terms match). In order to gauge the effectiveness, the underlying transactions are recorded

in the treasury management system as hypothetical derivates and evaluated to determine whether the relationship with the respective

hedges was or will be effective. Possible sources of ineffectiveness are, for example, timing shifts or a change in the volume of an existing

underlying transaction as well as adjustments for the credit risk of hedges and underlying transactions. All measures are based on internal

guidelines.

The EVN Group applied the hedge accounting rules under IFRS 9 to hedge a bond issued in JPY (see note 50. Non-current loans and

borrowings) as well as for the hedging of the currency risk from the Umm Al Hayman wastewater treatment project. In addition, deriva-

tive financial instruments were used as part of cash flow hedge accounting to hedge the price risk from the planned future income from

electricity sales at variable prices .

103EVN Annual Financial Report 20 22 / 23

Consolidated notes — Other information

JPY bond

The hedge of the JPY bond primarily involves EUR/JPY cross-currency swaps. These cross-currency swaps (for a nominal value of JPY 12bn

up to 15 January 2019 and for a nominal value of JPY 10bn since that date) represent a fair value hedge and are recorded and measured

in the treasury management system, designated as a hedge and documented. The corresponding change in the bond liability from the

hedge represents a contrary movement to the market value of the swaps. The results from the hedge of the JPY bond with cross-currency

swaps totalled EUR 1.2m in 2022/23 (measurement of the bond EUR 9.5m and measurement of the swaps EUR –8.3m; previous year:

earnings effect EUR 1.0m, including measurement of the bond EUR 7.8m and measurement of the swaps EUR –6.8m) and were recorded

under other financial results. The market value was derived from the information available on the balance sheet date and based on the

applicable bond price and exchange rate. A cross-currency swap for a nominal value of JPY 2bn was concluded to hedge the JPY bond

through a settlement agreement with a bank. The related agreement entitled both parties to early termination in January 2019, and the

cross-currency swap was terminated by the bank as of 15 January 2019. In connection with this termination, EVN dissolved the fair value

hedge relationship and collected a settlement payment of EUR 0.6m. The interest rate-based fair value adjustment of the JPY bond related

to the terminated EUR –1.2m swap will be released to profit or loss until the bond matures on 9 January 2024 (as of 30 September 2023:

EUR –0.1m and as of 30 September 2022: EUR –0.3m).

Umm Al Hayman/Bahrain

EVN concluded forward exchange contracts to hedge the planned net foreign currency cash flows from the Umm Al Hayman project

and, as of the 2022/23 financial year, also from the project in Bahrain. The expected payments are therefore fully hedged. A Group

guideline requires the critical terms of these forward exchange contracts to reflect the hedged transaction as best as possible. The hedging

does not result in any ineffectiveness if the expectations for the timing and amount remain unchanged.

EVN establishes the existence of an economic relationship between the hedging instrument and the hedged transaction based on the

currency, amount and timing of the respective cash flows. The dollar-offset derivative method is used to evaluate whether the derivative

designated in each hedge will presumably be, and was, effective in offsetting changes in the cash flows from the hedged transaction.

Portfolio hedge

EVN implements a portfolio hedge electricity to hedge the risk from the marketing of the Group’s own electricity production. Under cash

flow hedge accounting as defined by IFRS 9, derivative financial instruments (electricity forwards and electricity future contracts) used to

hedge the price risk from planned future income from electricity sales are carried at variable prices. The underlying transaction represents

the portfolio of future highly probable sales of electricity produced by the EVN Group in Austria.

Evaluating the effectiveness of the hedge involves demonstrating an economic relationship between the underlying transaction and the

hedging instrument. In addition, the default risk may not have a dominant influence on the changes in value. The prospective effective-

ness assessment principally takes place on a qualitative basis in accordance with the critical terms match method, which compares the key

conditions of the hedging instrument with the underlying transaction. In order to minimise the risk of ineffectiveness from over-hedging,

the hedges are not concluded for the total planned sales volumes. The major conditions between the hedging instruments and planned

cash flows agree, and it is therefore assumed that the changes in the value of the hedging instruments will be offset in full by the changes

in future cash flows. The hedged risks to which both the underlying transaction and hedging instrument are exposed therefore have an

opposite influence on the value of the underlying transaction and hedging instrument.

For hedges of electricity deliveries to foreign markets, the change in the value of the hedging instruments may not always fully offset the

change in the value of future cash flows. The higher liquidity on the German market has created a situation where increasingly futures are

seeing concluded in this market. The electricity price in Austria consists of a German electricity price plus a DE/AT spread. The futures

products concluded in Germany therefore represent a hedge for the price component included in the Austrian electricity prices.

104EVN Annual Financial Report 2022 / 23

If the hedge and the underlying transaction take place on the same market, complete coverage is principally ensured between the under-

lying transaction and the hedging instrument. If hedges are concluded on the German market due to a lack of sufficient liquidity, the risk

component of the German price alone represents the underlying transaction for the hedging relationship – and in that way, achieves full

coverage between the underlying transaction and the hedging instrument.

The ineffectiveness of hedges can lead to changes in the credit risk of the counterparty or to a reduction in the expected electricity

delivery volume.

Fair value hedging instruments –

30.09.2023

EURm

Carrying

amount Balance sheet position

Nominal

amount

Change in

fair value

Cross-currency swaps

–19.4 – Other current liabilities 10,0

–8.3

1) JPYbn

Fair value hedging instruments –

30.09.2022

EURm

Carrying

amount Balance sheet position

Nominal

amount

Change in

fair value

Cross-currency swaps

–11.1 – Other non-current liabilities 10.0

–6.8

1) JPYbn

Fair value hedge –

underlying transaction 30.09.2023

EURm

Carrying

amount Balance sheet position

Nominal

amount

Change in

fair value

JPY-bond

–61.2 –1.9 Current financial liabilities 10.0

9.7

1) JPYbn

Fair value hedge –

underlying transaction 30.09.2022

EURm

Carrying

amount Balance sheet position

Nominal

amount

Change in

fair value

JPY-bond

–70.9 –2.3 Non-current financial liabilities 10.0

7.8

1) JPYbn

Cash flow hedging instruments –

30.09.2023

EURm

Carrying

amount Balance sheet position

Nominal

amount

Change in

fair value

FX-forwards (KWD/EUR) –10.9 Other current/non-current liabilities 80.1

14.7

FX-forwards (USD/EUR) –1.0 Other current/non-current liabilities 111.4

18.5

FX-forwards (BHD/EUR) –0.6 Other current/non-current liabilities 8.4

–0.6

Portfolio hedge electricity 71.5 Other current/non-current receivables 908.2 GWh 47.2

Portfolio hedge electricity

–10.6 Other current/non-current liabilities 33.0 GWh 172.4

1) Nominal amount in KWDm

2) Nominal amount in USDm

3) Nominal amount in BHDm

4) EUR 8.7m negative market value recognised in the consolidated statement of operations at the beginning of the hedging relationship

105EVN Annual Financial Report 20 22 / 23

Consolidated notes — Other information

Cash flow hedging instruments –

30.09.2022

EURm

Carrying

amount Balance sheet position

Nominal

amount

Change in fair

value

FX-forwards (KWD/EUR) –25.6 Other current/non-current liabilities 81.2

–14.4

FX-forwards (USD/EUR) –19.5 Other current/non-current liabilities 174.7

–14.8

Portfolio hedge electricity 24.3 Other current/non-current liabilities 219.9 GWh –20.6

Portfolio hedge electricity –183.0

Other current/non-current liabilities 833.4 GWh –96.6

1) Nominal amount in KWDm

2) Nominal amount in USDm

3) EUR 31.8m negative market value recognised in the consolidated statement of operations at the beginning of the hedging relationship

Cash flow hedges – underlying transactions 30.09.2023

EURm Change in fair value

Reserve for measurement

of cash flow hedges

Payments in KWD (Firm commitment) 15.1 –22.4

Payments in USD (Firm commitment) 15.7 –18.1

Payments in BHD (Firm commitment) –0.6 –0.2

Portfolio hedge electricity 47.2 71.5

Portfolio hedge electricity 142.6 –1.9

Cash flow hedges – underlying transactions 30.09.2022

EURm Change in fair value

Reserve for measurement

of cash flow hedges

Proceeds from sales (Firm commitment) –43.1 –43.8

Disbursements for procurements (Planning and firm commitment) – –

Proceeds from sales (Firm commitment) –35.6 –35.8

Disbursements for procurements (Planning and firm commitment) – –

Portfolio hedge electricity 23.6 24.3

Portfolio hedge electricity –170.6 –151.2

Effects on the statement of

comprehensive income, statement

of financial position and

state-

ment of operations

30.09.2023

EURm

Hedge gains/

losses recognised

in other

comprehensive

income

Ineffectiveness

recognised to

profit or loss

Positions for

which

ineffectiveness

was recognised

Reclassification

from OCI to

statement of

operations

Positions for

which

reclassification

was recognised

Basis

adjustement

DBO-project (KWD)

15.1

– –

–6.3 Revenue

–

BOT-project (USD) 15.7

– –

–2.0 Revenue

–

Project Tubli (BHD)

–0.6 – – –0.3 Revenue –

Portfolio hedge electricity

189.7 – – –6.7 Revenue –

106EVN Annual Financial Report 2022 / 23

Effects on the statement of

comprehensive income, statement

of financial position and

statement

of operations

30.09.2022

EURm

Hedge gains/

losses recognised

in other

comprehensive

income

Ineffectiveness

recognised to

profit or loss

Positions for

which

ineffectiveness

was recognised

Reclassification

from OCI to

statement of

operations

Positions for

which

reclassification

was recognised

Basis

adjustement

DBO-project (KWD)

–43.1 – – –9.3 Revenue –

BOT-project (USD) –35.6 – – –4.1 Revenue –

Disbursements for procurements

(Planning and firm commitment)

– – – – – 3.4

Disbursements for procurements

(Planning and firm commitment)

– – – – – –1.8

Portfolio hedge electricity –147.0 – – –29.7 Revenue –

Expected occurrence of cash flows from forward exchange transactions

30.09.2023

Million foreign currency or exchange rate, GWh or EUR/MWh

< 1 year > 1 year

USD

Nominal amount in USD 99.4 12.0

Average USD/EUR forward rate 1.0693 1.1733

KWD

Nominal amount in KWD

40.9 39.2

Average KWD/EUR forward rate 0.3424 0.3481

BHD

Nominal amount in BHD 7.2 1.2

Average BHD/EUR forward rate 2.4089 2.3756

Forwards/Futures

Nominal value in GWH 700.9 200.7

Average hedge price EUR/MWh 202.47 180.23

Expected occurrence of cash flows from forward exchange transactions

30.09.2022

Million foreign currency or exchange rate, GWh or EUR/MWh

< 1 year > 1 year

USD

Nominal amount in USD 93.7 81.0

Average USD/EUR forward rate 1.1703 1.0742

KWD

Nominal amount in KWD

26.5 54.6

Average KWD/EUR forward rate 0.3363 0.3489

Forwards/futures

Nominal value in GWH 376.8 268.4

Average hedge price EUR/MWh 66.60 245.83

107EVN Annual Financial Report 2022 / 23

Consolidated notes — Other information

64. Disclosures of interests in other entities

An overview of the companies included in the consolidated financial statements is provided beginning on page 115 under EVN’s

investments.

Information on the joint ventures and associates that were included in EVN’s consolidated financial statements at equity in 2022/23 is

provided below.

The share of results from equity accounted investees with operational nature is reported as part of the results from operating activities (EBIT).

The following table shows the equity accounted investees with operational nature:

Joint ventures that were included at equity in the consolidated financial statements

as of 30.09.2023 in accordance with IFRS 11

Company

Bioenergie Steyr GmbH

Degremont WTE Wassertechnik Praha v.o.s.

EnergieAllianz

EVN KG

EVN-ECOWIND Sonnenstromerzeugungs GmbH

EVN-WE Wind KG

Fernwärme St. Pölten GmbH

Fernwärme Steyr GmbH

RAG

Ashta

Umm Al Hayman Wastewater Treatment Company KSPC

ZOV

Associates that were included at equity in the consolidated financial statements

as of 30.09.2023 in accordance with IAS 28

Company

Burgenland Energie

Verbund Innkraftwerke

ZOV UIP

108EVN Annual Financial Report 2022 / 23

The following table provides summarised financial information on each individually material joint venture included in the consolidated

financial statements:

Financial information of material

joint ventures

EURm 30.09.2023 30.09.2022

Joint venture

EVN KG RAG ZOV

Energie-

Allianz EVN KG RAG ZOV

Energie-

Allianz

Statement of financial position

Non-current assets 0.5 537.2 134.6 118.5 160.8 527.7 160.5 77.9

Current assets 609.0 124.7 50.9 735.2 1,134.3 507.8 46.8 2,313.5

Non-current liabilities 18.6 216.3 – 37.3 2.1 261.1 – 432.6

Current liabilities 607.8 144.7 7.7 892.2 462.9 501.7 15.5 757.6

Reconciliation of the carrying amount of

the share of EVN in the joint venture

Net assets –16.9 300.9 177.8 –75.8 830.2 272.7 191.8 1,201.3

Share of EVN in net assets (%) 100.00 100.00 48.50 45.00 100.00 100.00 48.50 45.00

Share of EVN in net assets –16.9 300.9 86.2 –34.1 830.2 272.7 93.0 540.6

/– Revaluations 16.9 138.5 0.3 34.1 – 138.8 5.9 –

Carrying amount of the share of EVN in the

joint venture

– 439.4 86.6 – 830.2 411.4 99.0 540.6

2022/23 2021/22

Statement of operations

Revenue

1,378.3 558.0 21.8 3,028.7 703.2 650.1 26.7 2,934.0

Scheduled depreciation and amortisation

–0.3 –38.5 – –0.5 –0.6 –40.1 – –0.6

Interest income

0.1 0.9 – 5.0 0.1 0.7 – –

Interest expense

–11.2 –5.0 – –1.5 –0.1 –1.9 – –2.0

Income tax

– –27.6 –3.0 –1.8 – –17.4 –4.6 0.2

Result for the period

–240.3 79.5 13.8 3.5 7.2 51.9 21.1 –5.5

Other comprehensive income

–908.1 –1.2 – –490.6 409.0 17.9 –0.3 1,165.0

Comprehensive income

–1,148.5 78.3 13.8 –487.2 416.2 69.8 20.8 1,159.5

Dividends received by EVN

5.5 50.0 21.8 – 76.2 48.0 14.6 –

The following table provides summarised financial information on the individually immaterial joint ventures included in the consolidated

financial statements:

Financial information of individually immaterial joint ventures

(EVN share)

EURm 2022/23 2021/22

Carrying value of the joint ventures as of the balance sheet date

167.9 138.7

Result for the period 15.1 7.8

Other comprehensive income 6.6 23.9

Comprehensive income 21.7 31.7

109EVN Annual Financial Report 2022 / 23

Consolidated notes — Other information

The following table provides summarised financial information on each individually material associate included in the consolidated

financial statements:

Financial information of

material associates

EURm 30.09.2023 30.09.2022

Associate

Verbund

IKW ZOV UIP

Burgenland

Energie

Verbund

IKW ZOV UIP

Burgenland

Energie

Statement of financial position

Non-current assets

1,244.4 0.6 998.4 1,250.9 0.5 842.5

Current assets

244.2 7.9 361.4 25.9 5.3 289.8

Non-current liabilities

135.9 – 179.5 76.3 – 178.2

Current liabilities

43.7 4.0 809.9 27.9 1.7 605.9

Reconciliation of the carrying amount of the

share of EVN in the associate

Net assets

1,309.0 4.5 370.4 1,172.6 4.1 348.4

Share of EVN in net assets (%)

13.00 31.00 49.00 13.00 31.00 49.00

Share of EVN in net assets

170.2 1.4 181.5 152.4 1.3 170.7

/– Revaluations

22.2 –0.1 34.3 23.4 0.1 20.3

Carrying amount of the share of EVN

in the associate 192.4 1.3 215.8 175.9 1.4 191.0

2022/23 2021/22

Statement of operations

Revenue 391.2 19.7 920.8 152.9 23.7 528.2

Result for the period 231.0 4.5 33.0 72.3 5.1 23.9

Other comprehensive income 5.4 – 10.2 –6.2 – 2.4

Comprehensive income 236.4 4.5 43.2 66.1 5.1 26.3

Dividends received by EVN 13.0 1.5 11.2 1.3 1.2 10.3

The consolidated financial statements include no associates that are individually immaterial .

65. Other obligations and risks

The commitments entered into by EVN and the related risks are as follows:

Other obligations and risks

EURm 30.09.2023 30.09.2022

Guarantees in connection with energy transactions

208.6 82.5

Guarantees in connection with projects in the Environment Segment

710.7 684.1

Guarantees related to the construction and operation of

Energy networks

4.0 2.0

Power plants

84.2 87.6

Order obligations for investments in intangible assets and property, plant and equipment

266.3 218.5

Further obligations arising from guarantees or other contractual contingent liabilities

0.1 0.1

Total

1,273.9 1,074.8

thereof in connection with equity accounted investees 195.9 82.0

110EVN Annual Financial Report 2022 / 23

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 72.1m (previous year: EUR 21.2m) .

Other obligations and risks increased by EUR 199.1m to EUR 1,273.9m compared to 30 September 2022. This change mainly resulted from

an increase in guarantees in connection with energy transactions, in guarantees for environmental projects as well as from an increase

in scheduled orders for investments in intangible assets and property, plant and equipment. This was offset by a reduction in guarantees in

connection with the construction and operation of power plants.

Contingent liabilities relating to guarantees in connection with energy transactions are recognised in the amount of the actual risk for

EVN for those guarantees issued for the procurement or marketing of energy. 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 208.6m as of 30 September 2023. The nominal volume of the guarantees underlying this assess-

ment was EUR 538.5m. As of 31 October 2023, the market price risk was EUR 164.1m based on an underlying nominal volume of

EUR 544.9m.

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 proceed-

ings 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 to affiliates as well as liabilities for affiliates’ loans .

66. 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 manage-

ment. Related parties further 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, joint ventures and associates that are not

included in the consolidated financial statements, 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 115 under EVN’s investments .

The province of Lower Austria holds 51.0% of the shares of EVN AG through NÖ Landes-Beteiligungsholding GmbH, St. Pölten. Therefore,

the province of Lower Austria and companies under its control or significant influence are classified as related parties of the EVN Group.

Since the province of Lower Austria is a government-related entity which has control over EVN AG due to its majority shareholding, EVN

has elected to apply the exemption provided by IAS 24.25. This exemption releases EVN from the requirement to disclose business trans-

actions and outstanding balances with related parties when the related party is a government-related entity. The business transactions

with companies under the control or significant influence of NÖ Landes-Beteiligungsholding GmbH are related mainly to the provision of

electricity, natural gas, network and telecommunications services.

111EVN Annual Financial Report 2022 / 23

Consolidated notes — Other information

NÖ Holding GmbH holds 100% of the shares in NÖ Landes-Beteiligungsholding GmbH, which prepares and publishes consolidated

financial statements.

Wiener Stadtwerke GmbH acquired 51,000,000 EVN shares on 5 August 2020. The closing of this transaction made the company, which

is wholly owned by the city of Vienna, the second largest shareholder of EVN AG with an investment of 28.4%. Since the city of Vienna is

a government-related entity which, based on the majority shareholding, can exercise significant influence over EVN AG, the exemption

provided by IAS 24.25 was applied. This exemption permits the non-disclosure of business transactions and outstanding balances with

related parties when the related pary is a government-related entity.

Transactions with related parties

Main shareholder

EVN is part of a joint venture with NÖ Landes-Beteiligungsholding GmbH as the main shareholder and Wiener Stadtwerke GmbH

as the minority shareholder. A group and tax equalisation agreement was concluded to regulate the modalities. On the basis of this

agreement, EVN has included further subsidiaries in this group of companies. This resulted in a current receivable of EUR 5.4m from

NÖ Landes-Beteiligungsholding GmbH as of 30 September 2023 (previous year: current liability of EUR 28.9m). All business relationships

with the main shareholder or companies attributable to the main shareholder are carried out at arm’s length.

Wiener Stadtwerke GmbH

Based on a syndicate agreement, EVN and Wiener Stadtwerke GmbH together hold roughly 26% of the voting shares in Verbund AG

through their direct and indirect investments (also see note 38. Other investments).

Based on the group and tax equalisation agreement, there is a current liability to Wiener Stadtwerke GmbH of EUR 3.1m as of

30 September 2023 (previous year: EUR 8.8m).

EnergieAllianz is a joint energy distribution company comprising Burgenland Energie, EVN and Wien Energie GmbH, a wholly owned

subsidiary of Wiener Stadtwerke GmbH. EVN holds 45% of the shares in EnergieAllianz, which is responsible for the trading and sale of

electricity, natural gas and energy-related services for industrial, large-scale and business customers.

EVN and Wiener Stadtwerke GmbH jointly operate the project company EVN-Wien Energie Windparkentwicklungs- und

Betriebs GmbH & Co KG through their respective subsidiaries, EVN Naturkraft and Wien Energie GmbH, each of which holds an

investment of 50% as a limited partner. This company is responsible for the development, construction and operation of wind parks.

Further joint investments, which are immaterial in scope, exist between the EVN Group and/or subsidiaries controlled by Wiener

Stadtwerke GmbH.

Investments in equity accounted investees

Within the context of its ordinary business operations, EVN has concluded supply and service contracts with numerous companies included

at equity in its consolidated financial statements. Long-term agreements were concluded with EnergieAllianz for the sale and procurement

of electricity and natural gas, and long-term procurement contracts were concluded with Verbund Innkraftwerke for electricity.

112EVN Annual Financial Report 20 22 / 23

The value of services provided to the investments in equity accounted investees listed above is as follows:

Transactions with joint ventures included at equity

EURm 2022/23 2021/22

Revenue

527.2 449.1

Cost of services received –153.5 –144.5

Trade accounts receivable 61.2 50.6

Receivables from cash pooling 86.5 –

Trade accounts payable 28.8 120.1

Loans 7.4 11.5

Liabilities from cash pooling – 8.2

Interest income from loans 0.4 0.4

Transactions with associates included at equity

EURm 2022/23 2021/22

Cost of services received

–48.1 –16.2

Trade accounts payable – 1.4

Transactions with related individuals

Executive Board and Supervisory Board

The payments to members of the Executive Board and the Supervisory Board consist primarily of salaries, severance payments, pensions

and Supervisory Board remuneration.

The remuneration paid to the active members of the Executive Board in 2022/23 totalled TEUR 1,360.2 (including compensation in kind

and contributions to pension funds; previous year: TEUR 1,253.5).

Remuneration of the active Executive Board

TEUR 2022/23 2021/22

Fixed

remuneration

Variable

remuneration

Compensation

in kind

Fixed

remuneration

Variable

remuneration

Compensation

in kind

Stefan Szyszkowitz 477.4 146.0 3.5 446.9 127.4 3.4

Franz Mittermayer 445.5 133.9 14.2 417.1 114.4 14.1

1) Corresponds to the amounts paid in the 2022/23 financial year; the variable remuneration depends on the achievement of targets. Details can be found in the remuneration report.

In addition, pension fund contributions made in 2022/23 equalled TEUR 72.6 for Stefan Szyszkowitz (previous year: TEUR 67.6) and

TEUR 67.1 for Franz Mittermayer (previous year: TEUR 62.5).

In the 2022/23 financial year, the provision for pension obligations for Stefan Szyszkowitz resulted in an addition of TEUR 856.1 (of which

TEUR 151.4 was interest expense and TEUR 568.3 was actuarial gains/losses). In the previous year, the change amounted to TEUR –2,313.9

(thereof TEUR 71.4 interest expense and TEUR –2,609.3 actuarial gains/losses). For Franz Mittermayer, there was an addition to the

provision for pension obligations of TEUR 337.7 (of which TEUR 230.4 interest expense and TEUR 107.3 actuarial gains/losses). In the

previous year, the change amounted to TEUR –1,707.4 (thereof TEUR 90.3 interest expense and TEUR –2,071.3 actuarial gains/losses) .

113EVN Annual Financial Report 2022 / 23

Consolidated notes — Other information

The addition to the provision for severance compensation on behalf of Stefan Szyszkowitz equalled TEUR 57.2 (thereof TEUR 10.3 interest

expense and TEUR 38.7 of actuarial gains/losses). The change in the previous year equalled TEUR – 20.9 (thereof TEUR 2.8 interest expense

and TEUR –32.7 of actuarial gains/losses). The addition to the provision for severance compensation on behalf of Franz Mittermayer

equalled TEUR 44.8 (thereof TEUR 11.8 interest expense and TEUR 33.0 of actuarial gains/losses). The addition in the previous year equalled

TEUR 23.0 (thereof TEUR 2.8 interest expense and TEUR 9.7 actuarial gains/losses).

In 2022/23 contributions of TEUR 9.6 (previous year: TEUR 8.8) were made to an external employee fund on behalf of Stefan Szyszkowitz

and TEUR 9.1 (previous year: TEUR 8.3) on behalf of Franz Mittermayer.

The year-on-year change in the remuneration of the active members of the Executive Board is attributable primarily to the change in

performance-based components and the annual wage and salary increases mandated by collective bargaining agreements.

The members of the Executive Board are also entitled to a contractually agreed pension at retirement, whereby pension payments under

the Austrian social security scheme and any payments from the VBV-Pensionskasse are credited against this amount.

The payments to former members of the Executive Board or their surviving dependents amounted to TEUR 1,034.4 in 2022/23

( p revious year: TEUR 1,008.4).

The additions to the provisions for severance payments and pensions for active members of senior management totalled TEUR 545.5

(thereof TEUR 95.4 interest expense and TEUR 353.4 of actuarial gains/losses). The comparative amounts for the previous year included

income of TEUR –1,006.6 (thereof TEUR 35.0 interest expense and TEUR –1,155.4 of actuarial gains/losses).

Contributions to the employee fund on behalf of active members of senior management totalled TEUR 19.9 in 2022/23 ( previous year:

TEUR 18.7) and pension fund contributions amounted to TEUR 337.8 (previous year: TEUR 412.8).

The above amounts include expenses recognised in accordance with national law, as required by the Austrian Corporate Governance Code.

In accordance with IAS 19, actuarial gains and losses are recorded under other comprehensive income.

The Supervisory Board remuneration totalled TEUR 172.7 in 2022/23 (previous year: TEUR 156.7). The members of the Advisory Committee

for Environmental and Social Responsibility received remuneration of TEUR 99.1 during the reporting year (previous year: TEUR 98.4).

The basic principles underlying the remuneration system are presented in the remuneration report, which is part of the corporate

governance 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 are not reported. Business transactions with non-consolidated subsidiaries and companies not included at equity

are generally not reported because they are immaterial.

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 2022/23. The resulting items

outstanding as of 30 September 2023 are reported under trade accounts receivable.

67. Significant events after the balance sheet date

No significant events occurred between the balance sheet date of 30 September 2023 and the release for publication of the consolidated

financial statements on 21 November 2023.

114EVN Annual Financial Report 2022 / 23

68. Information on management and staff

The corporate bodies of EVN AG are:

Executive Board

Stefan Szyszkowitz – Spokesman of the Ececutive Board

Franz Mittermayer – Member of the Executive Board

Supervisory Board

Chairman / Chairwoman

Reinhard Wolf (as of 19.06.2023)

Bettina Glatz-Kremsner (until 19.06.2023)

Vice-Chairmen

Jochen Danninger (as of 19.06.2023)

Norbert Griesmayr (until 19.06.2023)

Willi Stiowicek

Members

Georg Bartmann Maria Patek Peter Weinelt

Gustav Dressler Angela Stransky Friedrich Zibuschka (until 19.06.2023)

Philipp Gruber Veronika Wüster (as of 19.06.2023)

Employee representatives

Friedrich Bußlehner Paul Hofer Irene Pugl

Monika Fraißl Uwe Mitter

69. Approval of the 2022/23 consolidated financial statements for publication

These consolidated financial statements were prepared by the Executive Board as of the date indicated below. The individual financial

statements, which were also included in the consolidated financial statements after their adjustment to reflect International Financial

Reporting Standards, and the consolidated financial statements of EVN will be submitted to the Supervisory Board on 13 December 2023

for examination, and the Supervisory Board will also be asked to approve the individual financial statements.

69. Audit fees

EVN’s consolidated financial statements and annual financial statements for the 2022/23 financial year were audited by BDO Assurance

GmbH

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna (previous year: BDO Austria GmbH Wirtschaftsprüfungs- und Steuer-

beratungsgesellschaft, Vienna). The costs for BDO Assurance GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, respectively

for BDO Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft totalled EUR 0.4m (previous year: EUR 0.5m) and were

distributed as follows: 71.1% for auditing services (previous year: 52.1%), 16.3% for audit-related services (previous year: 15.6%) and 12.6%

for other consulting services (previos year: 32.3%). Auditing and consulting fees for the Group amounted to EUR 0.7m for the reporting

year (previous year: EUR 0.8m), whereby 82.4% (previous year: 67.0%) are attributable to auditing, 10.6% (previous year: 14.0%) to

audit-related services and 7.0% (previous year: 19.0%) to other consulting services.

Maria Enzersdorf, 21 November 2023

EVN AG

The Executive Board

Stefan Szyszkowitz Franz Mittermayer

Spokesman of the Executive Board Member of the Executive Board

115EVN Annual Financial Report 2022 / 23

The following table lists EVN’s investments classified by segment of business. The list of companies not included in the consolidated

financial statements of EVN AG for materiality reasons is based on the companies’ last available local annual financial statements as of

the respective balance sheet date. The data from companies that report in a foreign currency is translated into euros at the exchange

rate on the balance sheet date of EVN AG.

EVN’s investments according to § 245a (1) in connection with § 265 (2) UGB

Method of consolidation:

V: Fully consolidated company (subsidiary)

NV: Non-consolidated subsidiary

JO: Company included as joint operation

NJO: Company not included as a joint operation

E: Company included at equity

NE: Company not included at equity

1. EVN’s investments in the energy business ≥ 20.0%

as of 30 September 2023

1.1. Included in the consolidated financial statements of EVN

Company. registered office Shareholder

Interest

Balance

sheet date

Method of

consolidation

2022/23

Ashta Beteiligungsverwaltung GmbH (“Ashta”), Vienna EVN Naturkraft 49.99 31.12.2022 E

Bioenergie Steyr GmbH, Behamberg EVN Wärme 51.00 30.09.2023 E

Elektrorazpredelenie Yug EAD (“EP Yug”), Plovdiv, Bulgaria BG SN Holding 100.00 31.12.2022 V

ENERGIEALLIANZ Austria GmbH (“EnergieAllianz”), Vienna EVN ES 45.00 30.09.2023 E

EVN Bulgaria Elektrosnabdiavane EAD (“EVN Bulgaria EC”), Plovdiv, Bulgaria BG SV Holding 100.00 31.12.2022 V

EVN Bulgaria EAD (“EVN Bulgaria”), Sofia, Bulgaria EVN 100.00 31.12.2022 V

EVN Bulgaria Fernwärme Holding GmbH (“BG FW Holding”), Maria Enzersdorf EVN 100.00 30.09.2023 V

EVN Bulgaria RES Holding GmbH (“EVN Bulgaria RES”), Maria Enzersdorf EVN Naturkraft 100.00 30.09.2023 V

EVN Bulgaria Stromerzeugung Holding GmbH (“BG SE Holding”), Maria Enzersdorf EVN Naturkraft 100.00 30.09.2023 V

EVN Bulgaria Stromnetz Holding GmbH (“BG SN Holding”), Maria Enzersdorf EVN 100.00 30.09.2023 V

EVN Bulgaria Stromvertrieb Holding GmbH (“BG SV Holding”), Maria Enzersdorf EVN 100.00 30.09.2023 V

EVN Bulgaria Toplofikatsia EAD (“TEZ Plovdiv”), Plovdiv, Bulgaria BG FW Holding 100.00 31.12.2022 V

EVN Croatia Plin d.o.o (“EVN Croatia”), Zagreb, Croatia Kroatien Holding 100.00 31.12.2022 V

ELEKTRODISTRIBUCIJA DOOEL, Skopje, North Macedonia EVN Macedonia 100.00

31.12.2022 V

EVN Energieservices GmbH (“EVN ES“), Maria Enzersdorf EVN 100.00 30.09.2023 V

EVN Energievertrieb GmbH & Co KG (“EVN KG”), Maria Enzersdorf EVN ES 100.00 30.09.2023 E

EVN Geoinfo GmbH (“EVN Geoinfo”), Maria Enzersdorf Utilitas 100.00 30.09.2023 V

EVN Home DOO, Skopje, North Macedonia EVN Macedonia/

EVN Supply

100.00 31.12.2022 V

EVN Kavarna EOOD (“EVN Kavarna”), Plovdiv, Bulgaria EVN Bulgaria RES 100.00 31.12.2022 V

EVN Kroatien Holding GmbH (“Kroatien Holding”), Maria Enzersdorf EVN 100.00 30.09.2023 V

EVN Macedonia AD (“EVN Macedonia”), Skopje, North Macedonia EVN Mazedonien 90.00 31.12.2022 V

EVN Macedonia Elektrani DOOEL, Skopje, North Macedonia EVN Macedonia 100.00 31.12.2022 V

EVN Macedonia Elektrosnabduvanje DOOEL (“EVN Supply”), Skopje, North Macedonia

EVN Macedonia 100.00 31.12.2022 V

EVN Mazedonien GmbH (“EVN Mazedonien”), Maria Enzersdorf EVN 100.00 30.09.2023 V

evn naturkraft Erzeugungsgesellschaft m.b.H. (“EVN Naturkraft”), Maria Enzersdorf EVN 100.00 30.09.2023 V

EVN Service Centre EOOD, Plovdiv, Bulgaria EVN Bulgaria 100.00 31.12.2022 V

EVN Trading DOOEL, Skopje, North Macedonia EVN Trading SEE 100.00 31.12.2022 V

EVN Trading South East Europe EAD (“EVN Trading SEE”), Sofia, Bulgaria EVN Bulgaria 100.00 31.12.2022 V

EVN Wärme GmbH (“EVN Wärme”), Maria Enzersdorf EVN 100.00 30.09.2023 V

EVN Wärmekraftwerke GmbH (“EVN Wärmekraftwerke”), Maria Enzersdorf EVN / EVN Bet. 52 100.00 30.09.2023 V

Consolidated notes — Other information, EVN‘s investments

116EVN Annual Financial Report 20 22 / 23

1.2. Not included in the consolidated financial

statements of EVN due to immateriality

Company. registered office Shareholder

Interest

Shareholders’

equity

TEUR

Last year’s

profit/loss

TEUR

Balance sheet

date

Method of

consoli dation

2022/23

Bioenergie Wiener Neustadt GmbH, Wiener Neustadt EVN Wärme 90.00 964

(807)

157

(135)

31.12.2022

(31.12.2021)

Biowärme Amstetten-West GmbH, Amstetten EVN Wärme 49.00 2,641

(2,311)

429

(544)

31.12.2022

(31.12.2021)

cyberGRID Verwaltungs GmbH, Vienna EVN 100.00 6

(5)

(–)

31.03.2023

(31.03.2022)

cyberGRID GmbH & Co KG, Vienna EVN 100.00 139

(565)

–426

(–137)

31.03.2023

(31.03.2022)

Energie Zukunft Niederösterreich GmbH (“EZN“),

Heiligenkreuz

EVN 50.00 660

(1,122)

–462

(–428)

31.12.2022

(31.12.2021)

EVN Macedonia Holding DOOEL, Skopje, Nordmazedonien EVN 100.00 403

(413)

–10

(–11)

31.12.2022

(31.12.2021)

EVN-WIEN ENERGIE Windparkentwicklungs- und

Betriebs GmbH (“EVN-WE Wind GmbH“), Vienna

EVN Naturkraft 50.00 39

(37)

(1)

30.09.2022

(30.09.2021)

Fernwärme Mariazellerland GmbH, Mariazell EVN Wärme 48.86 582

(286)

296

(152)

31.12.2022

(31.12.2021)

Kraftwerk Nußdorf Errichtungs- und Betriebs GmbH, Vienna EVN Naturkraft 33.33 41

(39)

(3)

31.12.2022

(31.12.2021)

Kraftwerk Nußdorf Errichtungs- und Betriebs GmbH & Co KG,

Vienna

EVN Naturkraft 33.33 10,337

(9,235)

1,500

(397)

31.12.2022

(31.12.2021)

Netz Niederösterreich Beteiligung 31 GmbH

(“Netz Bet. 31“), Maria Enzersdorf

Netz

Niederösterreich

100.00 14,923

(14,923)

–

(–2)

30.09.2023

(30.09.2022)

Netz Niederösterreich Liegenschaftsbesitz 31 GmbH,

Maria Enzersdorf

Netz Bet. 31 100.00 15,455

(15,427)

(187)

30.09.2023

(30.09.2022)

1.1. Included in the consolidated financial statements of EVN

Company. registered office Shareholder

Interest

Balance

sheet date

Method of

consolidation 2022/23

EVN-ECOWIND Sonnenstromerzeugungs GmbH,

Maria Enzersdorf

EVN Naturkraft 50.00 30.09.2023 E

EVN-WIEN ENERGIE Windparkentwicklungs- und Betriebs GmbH & Co KG

(“EVN-WE Wind KG”), Vienna

EVN Naturkraft 50.00 30.09.2023 E

Fernwärme St. Pölten GmbH, St. Pölten EVN 49.00 31.12.2022 E

Fernwärme Steyr GmbH, Steyr EVN Wärme 49.00 30.09.2023 E

Hydro Power Company Gorna Arda AD, Sofia, Bulgaria BG SE Holding 76.00 31.12.2022 V

kabelplus GmbH (“kabelplus”), Maria Enzersdorf Utilitas 100.00 30.09.2023 V

Netz Niederösterreich GmbH (“Netz Niederösterreich”), Maria Enzersdorf EVN 100.00 30.09.2023 V

Verbund Innkraftwerke GmbH (“Verbund Innkraftwerke”), Töging, Germany

EVN Naturkraft 13.00 31.12.2022 E

Wasserkraftwerke Trieb und Krieglach GmbH (“WTK”), Maria Enzersdorf EVN Naturkraft 70.00 30.09.2023 V

1) This company is included in the consolidated financial statements at equity and presented in the above table despite a participation interest ≤ 20.0%

because of special contractual arrangements that allow for the exercise of significant influence.

117EVN Annual Financial Report 2022 / 23

EVN‘s investments

2. EVN’s investments in the environmental services business ≥ 20.0%

as of 30 September 2023

2.1. Included in the consolidated financial statements of EVN

Company. registered office Shareholder

Interest

Balance sheet

date

Method of

consolidation

2022/23

Cista Dolina – SHW Komunalno podjetje d.o.o., Kranjska Gora, Slovenia WTE Betrieb 100.00 30.09.2023 V

Degremont WTE Wassertechnik Praha v.o.s., Prague, Czech Republic WTE 35.00 31.12.2022 E

EVN Beteiligung 52 GmbH (“EVN Bet. 52”), Maria Enzersdorf EVN 100.00 30.09.2023 V

EVN Umwelt Beteiligungs und Service GmbH (“EVN UBS”), Maria Enzersdorf EVN Umwelt 100.00 30.09.2023 V

EVN Umweltholding und Betriebs-GmbH (“EVN Umwelt”), Maria Enzersdorf EVN 100.00 30.09.2023 V

EVN Wasser GmbH (“EVN Wasser”), Maria Enzersdorf EVN/Utilitas 100.00 30.09.2023 V

OOO EVN Umwelt Service, Moscow, Russia EVN UBS 100.00 31.12.2022 V

OOO EVN Umwelt, Moscow, Russia EVN UBS 100.00 31.12.2022 V

sludge2energy GmbH (“sludge2energy”), Berching, Germany WTE 100.00 31.12.2022 V

Storitveno podjetje Laško d.o.o., Laško, Slovenia WTE 100.00

30.09.2023

Umm Al Hayman Holding Company WLL, Kuwait City, Kuwait WTE 50.00

31.12.2022

WTE Abwicklungsgesellschaft Kuwait mbH, Essen, Germany

International 100.00

30.09.2023

WTE Betriebsgesellschaft mbH (“WTE Betrieb”), Hecklingen, Germany

WTE 100.00

30.09.2023

WTE International GmbH (“International”), Essen, Germany WTE 100.00

30.09.2023

WTE O&M Kuwait Sewerage Treatment O.P.C., Kuwait City, Kuwait International 100.00

30.09.2023

WTE otpadne vode Budva DOO, Podgorica, Montenegro WTE 100.00 31.12.2022 V

WTE Projektentwicklung GmbH, Maria Enzersdorf

WTE

100.00

30.09.2023

WTE Projektna družba Bled d.o.o., Bled, Slovenia WTE 100.00

30.09.2023

WTE Wassertechnik GmbH (“WTE”), Essen, Germany EVN Bet. 52 100.00

30.09.2023

WTE Wassertechnik (Polska) Sp.z.o.o., Warshaw, Poland WTE 100.00

30.09.2023

Zagrebačke otpadne vode d.o.o. (“ZOV”), Zagreb, Croatia WTE 48.50 31.12.2022 E

Zagrebačke otpadne vode – upravljanje i pogon d.o.o. (“ZOV UIP”), Zagreb, Croatia WTE 29.00 31.12.2022 E

1) The relief options of § 264 (3) of the German Commercial Code (dHGB) are used.

118EVN Annual Financial Report 2022 / 23

2.2. Not included in the consolidated financial

statements of EVN due to immateriality

Company. registered office Shareholder

Interest

Shareholders’

equity

TEUR

Last year’s

profit/loss

TEUR

Balance sheet

date

Method of

consoli dation

2022/23

Abwasserbeseitigung Kötschach-Mauthen Errichtungs- und

Betriebsgesellschaft mbH, Kötschach-Mauthen

EVN Umwelt 26.00 301

(260)

(190)

31.12.2022

(31.12.2021)

EVN Projektgesellschaft Müllverbrennungsanlage Nr. 1 mbH in

Liqu. (“EVN MVA1“), Essen, Germany

WTE 100.00 0

(–)

–742

(–1,006)

30.04.2022

(30.09.2021)

JV WTE Tecton Azmeel W.L.L, Al Seef (Manama), Bahrain WTE 50.00 –617

(87)

–704

(41)

30.09.2022

(30.09.2021)

SHW/RWE Umwelt Aqua Vodogradnja d.o.o., Zagreb, Croatia WTE 50.00 483

(493)

–10

(–12)

31.12.2022

(31.12.2021)

Wasserver- und Abwasserentsorgungsgesellschaft

Märkische Schweiz mbh, Buckow, Germany

WTE 49.00 566

(563)

(3)

31.12.2022

(31.12.2021)

Wiental-Sammelkanal Gesellschaft m.b.H, Untertullnerbach EVN Wasser 50.00 866

(866)

(0)

31.12.2022

(31.12.2021)

WTE Baltic UAB, Kaunas, Litauen WTE 100.00 262

(256)

(53)

30.09.2023

(30.09.2022)

WTE desalinizacija morske vode d.o.o., Budva, Montenegro WTE Betrieb 100.00

–689

(–646)

–25

(–13)

31.12.2022

(31.12.2021)

WTE Projektgesellschaft Natriumhypochlorit mbH, Essen,

Germany

International

100.00 24

(24)

–1

(–1)

30.09.2023

(30.09.2022)

119EVN Annual Financial Report 20 22 / 23

EVN‘s investments

3. EVN’s investments in other business activities ≥ 20.0%

as of 30 September 2023

3.1. Included in the consolidated financial statements of EVN

Company. registered office Shareholder

Interest

Balance sheet

date

Method of

consolidation

2022/23

Burgenland Holding Aktiengesellschaft (“Burgenland Holding“ bzw. “BUHO“),

Eisenstadt

EVN 73.63 30.09.2023 V

Burgenland Energie AG (“Burgenland Energie“), Eisenstadt BUHO 49.00 30.09.2023 E

EVN Business Service GmbH (“EVN Business“), Maria Enzersdorf Utilitas 100.00 30.09.2023 V

R138-Fonds, Wien EVN/Netz

Niederösterreich/

EVN Wasser

100.00 30.09.2023 V

RAG-Beteiligungs-Aktiengesellschaft (“RBG“), Maria Enzersdorf EVN 50.03 31.03.2023 V

RAG Austria AG (“RAG“), Vienna RBG 100.00 31.12.2022 E

UTILITAS Dienstleistungs- und Beteiligungs-Gesellschaft m.b.H (“Utilitas“),

Maria Enzersdorf

EVN 100.00 30.09.2023 V

3.2. Not included in the consolidated financial

statements of EVN due to immateriality

Company. registered office Shareholder

Interest

Sharehold-

ers’ equity

TEUR

Last year’s

profit/loss

TEUR

Balance sheet

date

Method of

consoli dation

2022/23

e&i EDV Dienstleistungsgesellschaft m.b.H., Vienna EVN 50.00 261

(276)

(62)

30.09.2023

(30.09.2022)

120EVN Annual Financial Report 2022 / 23

Report on the Consolidated Financial Statements

Audit Opinion

We have audited the consolidated financial statements of

EVNAG,

Maria Enzersdorf,

and of its subsidiaries (the Group) comprising the consolidated statement of financial position as of 30 September, 2023, the consolidated

statement of operations, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the

consolidated statement of cash flows for the fiscal year then ended and the notes to the consolidated financial statements.

Based on our audit the accompanying consolidated financial statements were prepared in accordance with the legal regulations and

present fairly, in all material respects, the assets and the financial position of the Group as of 30 September, 2023 and its financial perfor-

mance for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU and with

requirements stated in § 245a UGB.

Basis for Opinion

We conducted our audit in accordance with the regulation (EU) no. 537/2014 (in the following “EU regulation”) and in accordance with

Austrian Standards on Auditing. Those standards require that we comply with International Standards on Auditing (ISAs). Our responsibili-

ties under those regulations and standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial State-

ments” section of our report. We are independent of the Group in accordance with the Austrian Generally Accepted Accounting Principles

and professional requirements and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe

that the audit evidence we have obtained until the date of this auditor’s report is sufficient and appropriate to provide a basis for our

opinion by this date.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial

statements of the fiscal year. These matters were addressed in the context of our audit of the consolidated financial statements as a

whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Below are the key audit matters, from our viewpoint

• Accounting of the large-scale project Umm Al Hayman in the international project business

• Impairment of intangible assets, property, plant and equipment and investments in equity accounted investees

Accounting of the large-scale project Umm Al Hayman in the international project business

Facts and references to further information

With a contract volume of more than EUR 1.2 bn attributable to the Group, the Umm Al Hayman project is currently the largest con-

struction project in EVN’s international project division. The subject of this project is the design and construction of a sewage treatment

plant or respectively a sewer network with pumping stations in Kuwait. Contract costs have been capitalised and will be amortised

based on the project progress.

Revenue is recognised over the period in which the term of the service was rendered, with the stage of completion being measured

based on the cost incurred in relation to the expected total cost. As payments are denominated mainly in Kuwaiti dinar and US dollar,

derivative financial instruments are used to hedge against exchange rate risks. IFRS 9 hedge accounting is applied, therefore, the cumu-

lative gain or loss on the hedging instruments are recognised in other comprehensive income. The Covid 19 pandemic, delays in supply

chains as well as project modifications made at the customer`s request resulted in moderate delays, which need to be assessed and

accounted for. Overall, the project is classified as significant in terms of value for the consolidated financial statements and requires the

application of complex accounting methods.

Auditors’ report

121EVN Annual Financial Report 2022 / 23

The risk for the consolidated financial statements lies in the uncertainty of the assumptions and estimates needed to account for this

large-scale project. These may result in misstatements in the consolidated statement of financial position or the consolidated statement

ofoperations.

Auditing procedure

During our audit, we have obtained an understanding of the relevant processes and have tested the effectiveness of selected internal

controls. Additionally, we have analysed the accounting instructions and files (accounting template) and have assessed them based on

the underlying contracts. We have examined the application of the relevant accounting standards (in particular IFRS 15 – Revenue from

contracts with customers and IFRS 9 – Financial instruments regarding hedge accounting). The recorded costs (third party and own work)

have been critically reviewed and a detailed document examination on a sample basis was performed. We have inspected the cost and

project reports and questioned the commercial and technical project managers on the current construction process. Finally, we also

reconciled the cost element reports with the general ledger and the bookings were matched to the accounting templates.

Reference to further information

The principles of revenue recognition for construction projects are disclosed in the notes to the consolidated financial statements in

section 20 (Revenue recognition) of the Accounting and valuation policies. Further information to this project can be found in section 23

Accounting estimates and forward-looking statements, in section 39 Other non-current assets regarding costs for obtaining contracts

and in section 61 Risk management regarding foreign exchange risk.

Impairment of intangible assets, property, plant and equipment and investments in equity accounted investees

Facts and reference to further information

Intangible assets, property, plant and equipment (PPE) and investments in equity accounted investees with a total carrying amount of

EUR 5,600.3 mn account for 51% of total assets of the group as of 30 September, 2023.

Accounting standards require an assessment to be made at each reporting date, whether there is any indication that the recoverable

amount has decreased significantly. For those items of intangible assets, PPE and equity accounted investees, for which impairment losses

were recognised in prior periods, the Group assesses whether the impairment loss no longer exists and therefore needs to be reversed.

Intangible assets and property, plant and equipment for which no separate future cash flows can be identified are tested for impairment

at the level of the cash-generating units. By determining the value in use or, if necessary, the value less costs to sell, estimates must be

made regarding the development of revenues and expenses and the resulting cash surpluses, as well as assumptions for determining the

discount rate used.

The result of the valuation is therefore subject to estimation uncertainties. A change in the macroe-conomic, industry or corporate

situation in the future may lead to a reduction in cashflows and thus to impairment losses. For the consolidated financial statements,

there is a risk of incorrect valuation of intangible assets, property, plant and equipment, and investments in equity accounted investees.

Auditing procedure

During our audit, we have obtained an understanding of how the Group monitors impairment triggers. In doing so, we critically assessed

the processes implemented to determine whether they are suitable for the valuation of intangible assets, property, plant and equipment,

and investments in equity accounted investees. We also assessed the related key internal controls and evaluated their form and implemen-

tation. We critically assessed the triggers for impairments and reversals and have compared them with our own estimates.

Auditors’ report

122EVN Annual Financial Report 2022 / 23

We have critically discussed and evaluated the underlying forecasts and assumptions for the valuation and assessed their appropriate-

ness based on current and expected developments and other evidence. In consultation with our valuation specialists, we assessed the

measurement technique model, planning assumptions and measurement parameter for selected issues, on which the discount rate is

based. We assessed the appropriateness of planning estimates by comparing actual cash flows with prior period estimated cash flows on

a sample basis and discussing deviations with staff responsible for planning. We agreed that the respective results of the valuations were

properly accounted for.

Reference to further information

The procedures and effects of impairment tests are described in section 22 of the notes to the consolidated financial statements. Further

information can be found in section 23 Accounting estimates and forward-looking statements. The effects of impairment tests are pre-

sented in section 31 (Depreciation and amortisation and effects from impairment tests) and in sections 35 (Intangible assets), 36 (Property,

plant and equipment) and 37 (Investments in equity accounted investees) of the notes to the consolidated statement of financial position.

Other information

Management is responsible for the other information. The other information comprises the information included in the annual report, but

does not include the consolidated financial statements, the Group’s management report and the auditor’s report thereon.

We received the consolidated non-financial report and the consolidated corporate governance report before the date of the

auditor’sreport, and we expect to receive the remaining parts of the annual report after that date.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance

conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so,

to consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained

in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to

report that fact. We have nothing to report in this regard.

Responsibilities of Management and of the Audit Committee for the Consolidated Financial Statements

Management is responsible for the preparation of the consolidated financial statements in accordance with International Financial

Reporting Standards (IFRS), as adopted by the EU and with requirements stated in § 245a UGB, for them to present a true and fair

viewof the assets, the financial position and the financial performance of the Group and for such internal controls as management

determines are necessary to enable the preparation of consoli-dated financial statements that are free from material misstatement,

whether due to fraud or error.

123EVN Annual Financial Report 2022 / 23

Auditors’ report

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management

either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high

level of assurance, but is not a guarantee that an audit conducted in accordance with the EU regulation and in accordance with Austrian

Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are con-

sidered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken

on the basis of these consolidated financial statements.

As part of an audit in accordance with the EU regulation and in accordance with Austrian Standards on Auditing, which require the

application of ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit.

We also:

• identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design

and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a

basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from

error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit 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.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures

made by management.

• conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence

obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability

to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or condi-

tions may cause the Group to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,

andwhether the consolidated financial statements represent the underlying transactions and events in a manner that achieves

fairpresentation.

• obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group

to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of

the group audit. We remain solely responsible for our audit opinion.

124EVN Annual Financial Report 2022 / 23

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant

audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independ-

ence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,

and where applicable, related safeguards.

From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of

the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our

auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we

determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably

be expected to outweigh the public interest benefits of such communication.

Comments on the Group Management Report

Pursuant to Austrian Generally Accepted Accounting Principles, the Group management report is to be audited as to whether it is consistent

with the consolidated financial statements and as to whether it was prepared in accordance with the applicable legal regulations.

Management is responsible for the preparation of the Group’s management report in accordance with Austrian Generally Accepted

Accounting Principles

We conducted our audit in accordance with Austrian Standards on Auditing for the audit of the Group’s management report.

Opinion

In our opinion, the management report for the Group was prepared in accordance with the valid legal requirements, comprising the

details in accordance with § 243a UGB (Austrian Company Code) and is consistent with the consolidated financial statements.

Statement

Based on the findings during the audit of the consolidated financial statements and due to the thus obtained understanding concerning

the Group and its circumstances no material misstatements in the Group’s management report came to our attention.

Additional information in accordance with Article 10 of the EU Regulation

We were elected as auditor by the ordinary General Meeting on 2 February, 2023. We were appointed by the Supervisory Board

on3February, 2023. We have been appointed to audit the consolidated financial statements without interruption since the

2020/21 financial year.

We confirm that the audit opinion in the section “Report on the consolidated financial statements” is consistent with the additional report

to the Audit Committee referred to in article 11 of the EU regulation.

We declare that no prohibited non-audit services (article 5 par. 1 of the EU regulation) were provided by us and that we remained

independent of the audited company in conducting the audit.

125EVN Annual Financial Report 2022 / 23

Auditors’ report

Responsible austrian certified public accountant

The engagement partner on the audit resulting in this independent auditor’s report is Mr. Gerhard Posautz, Certified Public Accountant.

Vienna, 21 November 2023

BDO Assurance GmbH

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

Gerhard Posautz Johannes Waltersam

Certified Auditor Certified Auditor

This report is a translation of the original report in German, which is solely valid.

EVN AG

Jahresabschluss 2022/23

nach UGB

Sitz der Gesellschaft:

2344 Maria Enzersdorf

Registriert Landesgericht Wr. Neustadt

FN 72000 h

UID Nr. ATU14704505

EVN AG

EVN Platz

2344 Maria Enzersdorf

Österreich

126

EVN Annual Financial Report 2022 / 23

Inhaltsverzeichnis

Lagebericht 4

Jahresabschluss

Bilanz zum 30. September 2023 51

Gewinn- und Verlustrechnung für das Geschäftsjahr 2022/23 53

Entwicklung des Anlagevermögens 55

Beteiligungen der EVN AG 56

Uneingeschränkter Bestätigungsvermerk 57

Anhang 63

Bericht des Aufsichtsrats 84

Der vorliegende Jahresabschluss der EVN AG für das Geschäftsjahr 2022/23 wurde nach den

österreichischen Rechnungslegungsvorschriften erstellt.

Im Geschäftsbericht 2022/23 der EVN wurde ein Konzernabschluss nach den Grundsätzen der

International Financial Reporting Standards (IFRS) veröffentlicht. Mit dieser Form der Bericht-

erstattung legt die EVN ihren Aktionären und der Öffentlichkeit einen Konzernabschluss vor, der

international anerkannten Prinzipien der Rechnungslegung entspricht. Dieser Geschäftsbericht

kann selbstverständlich jederzeit bei der EVN angefordert werden.

Lagebericht 128

Jahresabschluss 175

Bilanz zum 30. September 2023 176

Gewinn- und Verlustrechnung für das Geschäftsjahr 2022/23 178

Entwicklung des Anlagevermögens 180

Beteiligungen der EVN AG 181

Uneingeschränkter Bestätigungsvermerk 182

Anhang 187

Inhalt

127

EVN Annual Financial Report 2022 / 23

L ag eberi cht

128

EVN Annual Financial Report 2022 / 23

EVN AG, Maria Enzersdorf

Lagebericht EVN AG für das Geschäftsjahr 2022/23

Bericht des Vorstandes

ENERGIEPOLITISCHES UMFELD

Europäische Union

Nach dem Willen der EU wird Europa bis 2050 der erste klimaneutrale Kontinent sein, und

bereits bis 2030 sollen die Treibhausgasemissionen erheblich reduziert werden. Vor diesem

Hintergrund arbeitet die EU laufend an weiteren Gesetzesvorhaben, um einen verbindlichen

Rechtsrahmen zur Erreichung dieser ambitionierten Ziele zu schaffen.

Im März 2023 einigten sich die Mitgliedsstaaten auf die Grundlagen des Pakets für den

Wasserstoffmarkt und den dekarbonisierten Gasmarkt. Es soll die wesentlichen

Rahmenbedingungen für den sukzessiven Übergang von fossilem Erdgas hin zu

erneuerbaren Gasen durch die Schaffung eines wettbewerbsfähigen Markts samt der dafür

erforderlichen Infrastruktur regeln. Weitere wesentliche Inhalte sind die Regulierung der

künftigen Wasserstoffnetze sowie die Verbesserung der Planungs- und Investitionssicherheit

für Netze und Speicher.

Im Mai 2023 trat eine neue EU-Richtlinie über die Reform des Emissionshandels in Kraft, die

diesen ab 2027 auch auf den Verkehrs- und Gebäudesektor ausweitet. Die Einnahmen aus

den neuen Bereichen des Emissionshandels sollen in einen Klima- und Sozialfonds fließen.

Im Herbst 2023 einigten sich EU-Parlament und Rat auf eine Novelle der Erneuerbaren-

Energien-Richtlinie (RED III), die deutlich ambitioniertere Ziele für den Anteil erneuerbarer

Energien in der Wärme- und Kälteversorgung sowie in den Sektoren Gebäude, Industrie und

Verkehr vorsieht. Für die Industrie bedeuten die neuen Ziele auch einen rascheren Umstieg

auf erneuerbaren Wasserstoff. Zudem enthält die Richtlinie die Vorgabe, die Dauer der

Planungs- und Genehmigungsverfahren für den Ausbau von Anlagen zur Erzeugung von

erneuerbaren Energien, Netzen und Energiespeichern zu verkürzen.

Vor dem Hintergrund der durch den Ukrainekrieg ausgelösten Energiekrise legte die EU-

Kommission 2023 einen Entwurf für ein neues Strommarktdesign vor. Ein wesentliches Ziel

der Reformbestrebungen ist es, die negativen Auswirkungen von extremen

Preisschwankungen auf den EU-Markt und letztlich auf die Verbraucher einzudämmen. Als

eine wesentliche Maßnahme soll künftig für Investitionen in Anlagen zur Stromerzeugung

aus erneuerbaren bzw. nichtfossilen Quellen die Übernahme von Marktpreisrisiken durch

den Staat ermöglicht werden. Dies soll einerseits den Kraftwerksbetreibern

Investitionssicherheit bieten, andererseits sollen Verbraucher bei steigenden Marktpreisen

entlastet werden können. Ermöglicht werden soll das durch den Abschluss sogenannter

energiewirtschaftlicher Differenzverträge (Contracts for Difference) zwischen

Stromproduzenten und den EU-Mitgliedsstaaten. Die EU ist bestrebt, dass das

Gesetzespaket zum Strommarktdesign noch vor den EU-Wahlen im Jahr 2024 beschlossen

wird.

Österreich

In Österreich enthält das im Juli 2021 beschlossene Erneuerbaren-Ausbau-Gesetz (EAG)

konkrete Ausbauziele. Bis 2030 soll die erneuerbare Stromerzeugung um insgesamt 27 TWh

pro Jahr gesteigert werden, davon sollen 11 TWh auf Photovoltaik, 10 TWh auf Windkraft, 5

TWh auf Wasserkraft und 1 TWh auf Biomasse entfallen.

129

EVN Annual Financial Report 2022 / 23

EVN AG, Maria Enzersdorf

Zu den für die Aktivitäten der EVN besonders relevanten Inhalten des EAG zählen die

Fördermechanismen für die Errichtung neuer erneuerbarer Erzeugungsanlagen sowie

Investitionszuschüsse für Elektrolyseanlagen zur Umwandlung von Strom in Wasserstoff

oder synthetisches Gas. Darüber hinaus sollen die Investitionssicherheit für bestehende und

zukünftige Anlagen zur Erzeugung von erneuerbarem Gas gewährleistet und der Anteil von

national produziertem erneuerbarem Gas am österreichischen Gasabsatz bis 2030 auf 5

TWh p. a. erhöht werden. Weitere relevante Inhalte sind die Rahmenbedingungen für

Bürgerenergiegemeinschaften und Erneuerbare-Energie-Gemeinschaften.

Im März 2023 wurden durch eine Novelle des Umweltverträglichkeitsprüfungsgesetzes

Verfahrenserleichterungen sowie Maßnahmen zur Beschleunigung der Genehmigung für

Vorhaben der Energiewende beschlossen.

Im Juni 2023 erfolgte mit der Novelle des Bundes-Energieeffizienzgesetzes die Umsetzung

der Energieeffizienz-Richtlinie der EU in Österreich.

Im Oktober 2023 einigte sich die Bundesregierung auf die Inhalte für ein neues Erneuerbare-

Wärme-Gesetz, das insbesondere ein Verbot der Errichtung neuer Heizungsanlagen auf

Basis fossiler Brennstoffe in Neubauten für Haushalte vorsieht. Ebenfalls im Oktober 2023

beschloss der österreichische Nationalrat im Rahmen einer Gesetzesnovelle einen höheren

Standard für die Gasbevorratung. Demnach müssen Gaslieferanten zur Gewährleistung der

Versorgungssicherheit künftig einen Versorgungsstandard von 45 Tagen (statt bisher 30

Tagen) gewährleisten. Neu eingeführt wurde auch ein Bevorratungsstandard für

Gaskraftwerke (inkl. Kraft-Wärme-Kopplungsanlagen). Zudem wurde die Verlängerung des

Vorhaltens der strategischen Gasreserve bis 2026 beschlossen.

Das Bundesministerium für Klimaschutz, Umwelt, Energie, Mobilität, Innovation und

Technologie arbeitet zur Umsetzung der Strombinnenmarktrichtlinie sowie der Erneuerbaren-

Richtlinie der EU aktuell am Elektrizitätswirtschaftsgesetz (ElWG), das auch das bestehende

Elektrizitätswirtschafts- und -organisationsgesetz (ElWOG) ersetzen soll. Vom ElWG werden

somit u. a. klare Regelungen zu Energiegemeinschaften (z. B. in Bezug auf den Betrieb von

Speichern) ebenso erwartet wie neue Regelungen für Netzbetreiber (z. B. in Bezug auf die

vereinfachte Nutzung von Smart-Meter-Daten für die Planung von Netzflexibilitäten). Auch

zusätzliche Konsumentenschutzbestimmungen sollen Eingang in das ElWG finden.

Bundesgesetz über den Energiekrisenbeitrag-Strom

In Österreich trat – in Umsetzung einer im Herbst 2022 beschlossenen EU-Verordnung über

zeitlich befristete Notfallmaßnahmen – für den Zeitraum 1. Dezember 2022 bis 31.

Dezember 2023 das Bundesgesetz über den Energiekrisenbeitrag-Strom in Kraft. Primäres

Ziel der EU-Verordnung und der darauf beruhenden nationalstaatlichen Gesetze war es,

temporär auf die massiven Verwerfungen auf den internationalen Energiemärkten und die

daraus resultierenden Auswirkungen auf die europäische Gesellschaft und Volkswirtschaft

zu reagieren. Konkret sollten die Mitgliedsstaaten zur Einhebung einer Solidaritätsabgabe

auf Grundlage gestiegener Markterlöse in der Stromerzeugung sowie aus dem Erdöl-, Kohle-

und Raffineriebereich ermächtigt werden. Die Einnahmen sollten verwendet werden, um

Endkunden wie Haushalte sowie kleinere und mittlere Unternehmen angesichts der hohen

Energiepreise finanziell zu entlasten.

Das österreichische Bundesgesetz über den Energiekrisenbeitrag-Strom sieht die

Abschöpfung von 90 % der Überschusserlöse aus der Stromerzeugung vor. Der

Schwellenwert zur Ermittlung der Überschusserlöse lag im Zeitraum 1. Dezember 2022 bis

31. Mai 2023 bei 140 Euro pro MWh bzw. bis zu 176 Euro pro MWh unter Berücksichtigung

der anrechenbaren Investitionen in erneuerbare Energien und Energieeffizienzmaßnahmen.

Ab 1. Juni 2023 wurde der Schwellenwert aufgrund der mittlerweile gesunkenen

Großhandelspreise für Strom auf 120 Euro pro MWh bzw. bis zu 156 Euro pro MWh

reduziert.

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WIRTSCHAFTLICHES UMFELD

Nachdem die Weltwirtschaft im Lauf des Jahres 2022 bereits deutlich an Schwung verloren

hatte, setzte sich dieser Trend 2023 fort. Im Vorjahr hatte die Energiekrise und der damit

verbundene, teilweise drastische Anstieg der Marktpreise für Strom und Erdgas Europa

stärker getroffen als die USA, wo die Konjunktur trotz der ausgeprägten Straffung der

Geldpolitik robust blieb. Mit einem Plus von 3,3 % fiel das Wachstum in der Eurozone damit

2022 nur moderat aus. Aktuell gehen die Ökonomen mehrheitlich davon aus, dass die in

einigen wenigen Ländern einsetzende Rezession von kurzer Dauer sein wird und die

Konjunktur sich im nächsten Jahr allgemein wieder verbessern wird. Diese Annahme beruht

auf dem im Vergleich zu den Höchstständen deutlichen Rückgang der Energiepreise, den

durch die nachlassende Inflation steigenden Realeinkommen sowie auf dem verbesserten

weltwirtschaftlichen Umfeld. Für die Eurozone werden für 2023 BIP-Wachstumsraten

zwischen 0,4 und 1,1 % bzw. zwischen 1,2 und 1,6 % für 2024 erwartet.

Die österreichische Volkswirtschaft befindet sich gegenwärtig im Sog des internationalen

Konjunkturabschwungs in einer Rezession. Nach einem Anstieg um 4,8 % im Jahr 2022

dürfte die Wirtschaftsleistung 2023 um bis zu 0,8 % schrumpfen. Hauptfaktoren dafür sind

die Belastungen durch die überdurchschnittlich hohe Inflation, die restriktive Geldpolitik

sowie die schwache internationale Wirtschaftsentwicklung. Hinzu kommen eine geringere

gesamtwirtschaftliche Nachfrage nach den coronabedingten Aufholeffekten sowie die

schwächere wirtschaftliche Entwicklung gerade in den Nachbarländern. Die Industrie leidet

unter einem Rückgang bei den Aufträgen und hohem Kostendruck. Für das nächste Jahr

wird jedoch eine Belebung der Weltwirtschaft und ein von steigenden Realeinkommen

getragenes Wachstum des privaten Konsums erwartet. Damit dürfte das BIP 2024 auch in

Österreich etwa um 0,8 bis 1,6 % steigen.

ENERGIEWIRTSCHAFTLICHES UMFELD

Das Energiegeschäft der EVN ist wesentlich durch externe Einflussfaktoren geprägt. Bei den

Haushaltskunden geht vor allem von der Witterung ein starker Einfluss auf die Nachfrage

nach Strom, Erdgas und Wärme aus. Die Nachfrage der Industriekunden wiederum ist

primär durch die wirtschaftliche Entwicklung bestimmt. Seit Beginn des Ukrainekriegs und

der dadurch ausgelösten Energiekrise spielen zudem die Energiesparmaßnahmen, mit

denen viele Kunden auf die gestiegenen Energiepreise reagieren, eine wesentliche Rolle.

Auch die Marktpreise und damit die Beschaffungspreise der EVN hängen vom

geopolitischen Umfeld ab. Für die Energieerzeugung sind das Wind- und Wasserdargebot

sowie die Sonneneinstrahlung relevant.

Im Geschäftsjahr 2022/23 war der Witterungsverlauf in allen drei Kernmärkten der EVN von

milden Temperaturen geprägt. Die Heizgradsumme – sie definiert den temperaturbedingten

Energiebedarf – lag in Österreich leicht, in Bulgarien und Nordmazedonien deutlich unter

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dem langjährigen Durchschnitt. In Bulgarien erreichte sie sogar nur 77,7 % des üblichen

Mittelwerts. Zum Unterschied davon waren die Heizgradsummen im Vorjahr in allen drei

Ländern deutlich über dem langjährigen Durchschnitt gelegen.

Die Kühlgradsumme, die den Energiebedarf für Kühlung bemisst, stieg im Geschäftsjahr

2022/23 in allen drei Kernmärkten im Vergleich zum Vorjahr deutlich an. In Österreich kam

sie leicht, in Bulgarien und Nordmazedonien deutlich über dem langjährigen Durchschnitt zu

liegen.

Nach den massiven Schwankungen und Verwerfungen im vorangegangenen Geschäftsjahr

waren die Primärenergie- und Energiepreise in der Berichtsperiode vor allem während der

Sommermonate wieder rückläufig. So halbierte sich der durchschnittliche EEX-Börsepreis für

Erdgas von zuvor 123,1 Euro pro MWh auf rund 56,4 Euro pro MWh. Gegen Ende des

Berichtsjahres zeichnete sich hier allerdings wieder ein gegenläufiger Trend ab. Eine

Ausnahme bildeten die Preise für CO2-Emissionszertifikate: Ihr Preis unterlag zwar

geringeren Schwankungen, lag im Schnitt aber mit 84,2 Euro pro Tonne im Geschäftsjahr

2022/23 um rund 8 % über dem Vorjahreswert von 78,0 Euro pro Tonne.

Dies wirkte sich auch auf die Marktpreise für Strom entsprechend aus: Sie verzeichneten im

Berichtsjahr zwar einen deutlichen Rückgang, blieben aber dennoch auf hohem Niveau: Die

Spotmarktpreise für Grund- und Spitzenlaststrom lagen bei durchschnittlich 134,4 Euro pro

MWh bzw. 154,8 Euro pro MWH (Vorjahr: 258,7 Euro pro MWh bzw. 296,3 Euro pro MWh).

WIRTSCHAFTLICHE ENTWICKLUNG

Kennzahlen zur Ertragslage

2022/23

2021/22

Veränderung

Mio. EUR

Umsatzerlöse

936,4

790,3

146,1

18,5%

Die Umsatzerlöse stiegen auf 936,4 Mio. EUR und setzen sich aus Stromerlösen in Höhe

von 485,4 Mio. EUR (VJ: 550,3 Mio. EUR), Gaserlösen in Höhe von 242,0 Mio. EUR (VJ:

55,9 Mio. EUR) und sonstigen Umsatzerlösen in Höhe von 209,0 Mio. EUR (VJ: 184,0 Mio.

EUR) zusammen.

Die Stromerlöse sanken gegenüber dem Vorjahr um 64,9 Mio. EUR, während die Gaserlöse

um 186,0 Mio. EUR und die sonstigen Umsatzerlöse um 25,0 Mio. EUR stiegen. Die

Stromerlöse sanken trotz höherer Energieabsatzpreise, was in erster Linie auf positive

Effekte aus Absicherungsgeschäften im Vorjahr und gesunkene Erlöse aus dem CO2-

Zertifikatehandel zurückzuführen ist. Der Anstieg der Gaserlöse resultiert hauptsächlich aus

gestiegenen Absatzpreisen und Arbitragegeschäften zur Optimierung der Nutzung der zur

Verfügung stehenden Gasspeicherkapazitäten. Die Preiseffekte gegenüber dem Vorjahr sind

also sowohl im Strom- als auch im Gasbereich der Marktpreisentwicklung entgegengesetzt.

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EVN AG, Maria Enzersdorf

Das begründet sich daraus, dass die EVN AG den Großteil ihrer absatz- und

beschaffungsseitigen Geschäfte mehrere Monate im Voraus kontrahiert.

Berechnung

2022/23

2021/22

Veränderung

Mio. EUR

Ergebnis vor

Zinsen und

Steuern

Ergebnis vor Steuern

+ Zinsen und ähnliche

Aufwendungen gemäß §

473,8

385,4

88,4

22,9%

231 (2) Z 15 UGB

Die sonstigen betrieblichen Erträge betrugen im Geschäftsjahr 2022/23 1,9 Mio. EUR

(Vorjahr: 48,4 Mio. EUR). Der Rückgang ist auf den Wegfall von Einmaleffekten aus der

Auflösung von Rückstellungen im Vorjahr und auf positive Effekte aus

Absicherungsgeschäften im Vorjahr zurückzuführen.

Die Aufwendungen für Primärenergie, CO2-Kosten und Strombezug betrugen im

abgelaufenen Geschäftsjahr 682,5 Mio. EUR (Vorjahr: 564,7 Mio. EUR). Der Anstieg ist in

erster Linie auf einen preisbedingten Anstieg der Aufwendungen für Strom- und Gasbezug

zurückzuführen. Dieser Effekt wird abgeschwächt durch gesunkene Aufwendungen für CO2

Zertifikate und positive Effekte aus beschaffungsseitigen Derivaten.

An Materialaufwand und sonstigen bezogenen Leistungen fielen 105,5 Mio. EUR (Vorjahr:

91,9 Mio. EUR) an. Dies bedeutet gegenüber dem Vorjahr einen Anstieg von 13,6 Mio. EUR.

Der Personalaufwand betrug im Geschäftsjahr 2022/23 96,6 Mio. EUR (Vorjahr: 73,5 Mio.

EUR) und ist insbesondere aufgrund von kollektivvertraglichen Anpassungen und

Rückstellungsbildungen gegenüber dem Vorjahr gestiegen. Bei der EVN AG waren

durchschnittlich 561 Angestellte auf Vollzeitbasis (Vorjahr: 546 Angestellte) beschäftigt.

Daraus resultierte ein Personalaufwand pro Mitarbeiter von 0,2 Mio. EUR (Vorjahr: 0,1 Mio.

EUR). Der Umsatz pro Mitarbeiter betrug 1,7 Mio. EUR (Vorjahr: 1,4 Mio. EUR).

Die Abschreibungen betrugen im Berichtszeitraum 6,5 Mio. EUR und sind damit um 0,1 Mio.

EUR höher als im Vorjahr.

Die sonstigen betrieblichen Aufwendungen beliefen sich auf 31,4 Mio. EUR (Vorjahr 27,6

Mio. EUR).

Aufgrund der oben angeführten Rahmenbedingungen verzeichnete die EVN AG ein positives

Betriebsergebnis in Höhe von 15,1 Mio. EUR (Vorjahr 74,0 Mio. EUR).

Das Finanzergebnis ist vor allem durch Beteiligungserträge, Zinsaufwendungen und -erträge,

Wertpapiererträgen und Aufwendungen aus Finanzanlagen geprägt. Das

Beteiligungsergebnis stieg gegenüber dem Vorjahr von 300,5 Mio. EUR auf 431,1 Mio. EUR,

getrieben durch die höhere Verbund-Dividende. Die sonstigen Zinsen und ähnlichen

Erträgen beliefen sich auf 29,6 Mio. EUR (VJ: 8,7 Mio. EUR). Die Erträge aus dem Abgang

von und der Zuschreibung zu Finanzanlagen sanken auf 1,9 Mio. EUR (VJ: 8,7 Mio. EUR).

Die Aufwendungen aus Finanzanlagen und aus Wertpapieren des Umlaufvermögens stiegen

vor allem wegen höherer Abschreibungen auf Anteile an verbundenen Unternehmen auf

33,8 Mio. EUR (VJ: 24,5 Mio. EUR). Die Zinsen und ähnlichen Aufwendungen betrugen im

Geschäftsjahr 69,0 Mio. EUR (VJ: 34,6 Mio. EUR).

Insgesamt konnte ein Finanzergebnis in Höhe von 389,6 Mio. EUR erzielt werden, welches

um 112,9 Mio. EUR oder 40,8 % über dem Vorjahr liegt.

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Die beschriebenen Entwicklungen führten zu einem Ergebnis vor Steuern von 404,7 Mio.

EUR. Dies bedeutet einen Anstieg von 54,0 Mio. EUR. Das Ergebnis vor Zinsen und Steuern

erhöhte sich um 88,4 Mio. EUR auf 473,8 Mio. EUR.

Berechnung

2022/23

2021/22

Eigenkapitalrentabilität

Ergebnis vor Steuern

14,6%

14,2%

durchschnittliches Eigenkapital

Die Eigenkapitalrentabilität belief sich im Geschäftsjahr 2022/23 auf 14,6%. Im Geschäftsjahr

2021/22 betrug diese 14,2%.

Berechnung

2022/23

2021/22

Gesamtkapitalrentabilität

Ergebnis vor Zinsen und Steuern

9,5%

8,3%

durchschnittliches Gesamtkapital

Im Geschäftsjahr 2022/23 konnte eine Gesamtkapitalrentabilität von 9,5% erzielt werden. Im

Geschäftsjahr 2021/22 betrug diese 8,3%.

Kennzahlen zur Vermögens- und Finanzlage

Berechnung

30.09.2023

30.09.2022

Veränderung

Mio. EUR

Nettoverschuldung

Verzinsliches Fremdkapital

166,3

76,4

89,9

117,6%

- Flüssige Mittel

Das verzinsliche Fremdkapital und die flüssigen Mittel berechnen sich dabei

folgendermaßen:

Berechnung

30.09.2023

30.09.2022

Veränderung

Mio. EUR

Verzinsliches

Fremdkapital

Anleihen

+Verbindlichkeiten aus

Schuldscheindarlehen

+Verbindlichkeiten gegenüber

Kreditinstituten

1.982,6

1.855,8

126,9

6,8%

+Finanzverbindlichkeiten

gegenüber verbundenen

Unternehmen und beteiligten

Unternehmen

+Rückstellungen für

Abfertigungen

+Rückstellungen für Pensionen

+Rückstellungen für

Jubiläumsgelder

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30.09.2023

30.09.2022

Veränderung

Mio. EUR

Flüssige

Mittel

Ausleihungen an verbundene

Unternehmen, Forderungen aus

Cash Pooling, Kassenbestand,

Schecks, Guthaben bei

Kreditinstituten, Wertpapiere des

UV sowie aus sonstigem

Finanzvermögen

1.816,4

1.779,4

37,0

2,1%

Berechnung

30.09.2023

30.09.2022

Veränderung

Mio. EUR

Nettoumlaufvermögen

Umlaufvermögen

-28,8

116,2

-145,0

n.a.%

- langfristiges

Umlaufvermögen

=Kurzfristiges

Umlaufvermögen

- kurzfristiges

Fremdkapital

=Nettoumlaufvermögen

Der Anstieg des kurzfristigen Fremdkapitals bei gleichzeitigem Rückgang des

Umlaufvermögens führte gegenüber dem Vorjahr zu einem Rückgang des

Nettoumlaufvermögens auf -28,8 Mio. EUR.

Berechnung

30.09.2023

30.09.2022

Eigenkapitalquote

Eigenkapital

56,6%

54,5%

Gesamtkapital

Die Bilanzsumme betrug per 30.09.2023 5.182,1 Mio. EUR (VJ: 4.782,5 Mio. EUR) und

erhöhte sich damit gegenüber dem Vorjahr um 399,7 Mio. EUR bzw. 8,4 %. Das Eigenkapital

der Gesellschaft belief sich auf 2.932,4 Mio. EUR (VJ: 2.608,7 Mio. EUR).

Der stärkere Anstieg des Eigenkapitals führte insgesamt zu einer um 2,1%-Punkte höheren

Eigenkapitalquote.

Berechnung

30.09.2023

30.09.2022

Nettoverschuldungsgrad

Nettoverschuldung

5,7%

2,9%

Eigenkapital

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Geldflussrechnung

Berechnung

2022/23

2021/22

Veränderung

Mio. €

Geldflussrechnung

Geldfluss aus dem Ergebnis

541,5

337,2

204,3

60,6%

Netto-Geldfluss aus der

laufenden Geschäftstätigkeit

402,5

360,8

41,7

11,4%

Netto-Geldfluss aus der

Investitionstätigkeit

-536,4

-194,0

-342,4

176,5%

Netto-Geldfluss aus der

Finanzierungstätigkeit

10,0

-24,7

34,7

n.a.%

Zahlungswirksame

Veränderung des

Finanzmittelbestandes

-123,8

142,1

-266,0

n.a.%

Ausgehend von einem Jahresüberschuss in Höhe von 416,3 Mio. EUR belief sich der

Cashflow aus dem Ergebnis im abgelaufenen Geschäftsjahr auf 541,5 Mio. EUR und der

Cashflow aus der laufenden Geschäftstätigkeit auf 402,5 Mio. EUR.

Der Cashflow aus der Investitionstätigkeit betrug -536,4 Mio. EUR, wobei die Veränderung

zum Vorjahr vor allem auf höhere Investitionen in Finanzanlagen bei geringeren

Einzahlungen aus Anlagenabgängen zurückzuführen ist.

Ausgehend von der im Geschäftsjahr 2022/23 durchgeführten Ausschüttung aus dem

Bilanzgewinn 2021/22 in Höhe von 92,7 Mio. EUR und einem Anstieg der

Finanzverbindlichkeiten weist die EVN AG einen Cashflow aus der Finanzierungstätigkeit in

Höhe von 10,6 Mio. EUR aus.

Insgesamt resultierte aus dieser Entwicklung eine Reduktion des Finanzmittelbestandes

(bestehend aus Forderungen aus Cash Pooling, Taggeldguthaben bei Kreditinstituten und

Wertpapieren des Umlaufvermögens) von -123,8 Mio. EUR.

Die Veränderung der

Verbindlichkeiten aus Cash Pooling werden im Cashflow aus der Finanzierungstätigkeit

ausgewiesen.

Zweigniederlassungen

EVN verfügt über keine Zweigniederlassungen im Sinne des § 243 Abs 3 Z 4 UGB.

Innovation, Forschung und Entwicklung

Die Handlungsfelder der Wesentlichkeitsmatrix der EVN geben auch den Themenrahmen für

die Innovations-, Forschungs- und Entwicklungsaktivitäten der Gruppe vor. In diesem Sinn

verfolgt die EVN primär Projekte zur Gewährleistung der Versorgungssicherheit, zur

Schonung von Klima und Umwelt sowie zur Stärkung der Wettbewerbsfähigkeit des

Unternehmens. Übergeordnetes Kriterium ist bei allen Projekten die Anforderung, einen

konkreten Kundennutzen zu erbringen.

In der Berichtsperiode hat die EVN insgesamt 1,0 Mio. Euro (Vorjahr: 1,8 Mio. Euro) für

Innovations-, Forschungs- und Entwicklungsprojekte aufgewendet. Für diese Projekte

wurden Förderungen in Anspruch genommen, die einer Förderquote von 11,0 %

entsprechen.

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Ein wesentlicher Schwerpunkt in den Innovationsaktivitäten der EVN gilt Lösungen zur

Speicherung erneuerbarer Überschussproduktion für Perioden mit geringer

Energieerzeugung aus erneuerbaren Quellen. Besonders in saisonaler Hinsicht ist dies die

zu lösende Herausforderung für ein CO2-freies Energiesystem. Denn während die

Stromerzeugung aus Windkraft und Photovoltaik im Sommerhalbjahr dank des forcierten

Ausbaus mittlerweile häufig die Nachfrage deutlich übersteigt, können Perioden mit

geringem Wasser-, Wind- und Sonnenaufkommen in Zentraleuropa – vor allem im

Winterhalbjahr – zu herausfordernden Situationen für die Versorgungssicherheit führen. Vor

diesem Hintergrund engagiert sich die EVN z. B. als Projektpartner der RAG bei einer

Pilotanlage, die Sonnenenergie zum Betrieb einer Elektrolyseanlage nutzt. Der dadurch

produzierte grüne Wasserstoff wird in eine natürliche Erdgasspeicherspeicherstätte der RAG

eingespeichert und kann im Winter zur emissionsfreien Energie- bzw. Wärmeerzeugung

genutzt werden. In anderen Projekten forscht die EVN an Möglichkeiten,

Überschussproduktion aus erneuerbaren Quellen für sektorenübergreifende Zwecke oder

zur Substitution thermischer Erzeugung zu nutzen. Ein Beispiel ist der Pilot-Hybridspeicher

Theiß, eine Kombination eines Wärmespeichers mit einem 5-MW-Batteriespeicher und einer

Photovoltaikanlage.

Weitere Forschungsschwerpunkte der EVN betreffen innovative Ansätze zur vermehrten

Nutzung von Flexibilitäten verschiedener Abnehmer und kleinerer Stromproduzenten, um die

Energienachfrage zeitlich so zu verändern, dass Nachfragespitzen vermieden und der

Bedarf mit den gerade verfügbaren Energiemengen aus erneuerbarer Produktion gedeckt

werden kann. Beiträge leisten in diesem Bereich etwa die 2022 von der EVN erworbene

Tochtergesellschaft CyberGrid mit speziellen IT-Lösungen zum Flexibilitätsmanagement von

Stromnetzen sowie Einzelprojekte (z. B. solche zum bidirektionalen Laden von E-

Fahrzeugen) im Rahmen des Green Energy Lab, eines branchenübergreifenden

Innovationslabors.

Risikomanagement

Risikodefinition

Im EVN Konzern ist Risiko als die potenzielle Abweichung von geplanten

Unternehmenszielen definiert.

Risikomanagementprozess

Primäres Ziel des Risikomanagements ist die gezielte Sicherung bestehender und

zukünftiger Ertrags- und Cash-Flow-Potenziale durch aktive Risikosteuerung. Dazu stellt

ein zentral organisiertes Risikomanagement den dezentralen Risikoverantwortlichen im

Rahmen des Risikomanagementprozesses geeignete Methoden und Werkzeuge zur

Identifikation und Bewertung von Risiken zur Verfügung. Die risikoverantwortlichen

Geschäftseinheiten kommunizieren ihre Risikopositionen an das zentrale

Risikomanagement. Hier werden geeignete Maßnahmen zur Risikominimierung definiert,

für deren Umsetzung wiederum die dezentralen Geschäftseinheiten verantwortlich sind.

Ebenso erfolgt hier die Analyse des Risikoprofils der EVN. Die jährliche Erfassung und das

Management von Risiken mit Bezug auf Nachhaltigkeit, Klima und Compliance erfolgen im

Einklang mit dem zentralen Risikomanagementprozess durch darauf spezialisierte

Organisationseinheiten bzw. Prozesse. Insgesamt umfasst der Risikomanagementprozess

der EVN die folgenden Schritte:

•

Identifikation:

Erhebung bzw. Überarbeitung der Risiken auf Basis der letzten

Risikoinventur (Review des Risikoinventars) und Identifikation von neuen Risiken und

entsprechenden Risikosteuerungsmaßnahmen

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•

Bewertung und Analyse:

Qualitative und quantitative Bewertung der identifizierten

Risiken, Aggregation der Risiken nach unterschiedlichen Betrachtungsperspektiven und

Modellierung der Ergebnis- und Cash-Flow-Verteilungen

•

Berichterstattung:

Diskussion und Beurteilung des Risikoprofils im

Risikoarbeitsausschuss und im Konzernrisikoausschuss sowie gegebenenfalls

Einleitung von weiteren Risikosteuerungsmaßnahmen; Risikoberichterstattung an den

Prüfungsausschuss

•

Prozess-Review:

Definition jener organisatorischen Einheiten, die einer expliziten

Risikobetrachtung zu unterziehen sind; regelmäßige Überprüfung, ob die festgelegten

Methoden bei geänderten Verhältnissen modifiziert werden müssen; regelmäßige

Prüfung durch die Interne Revision

Aufgaben des Risikoarbeitsausschusses

Der Risikoarbeitsausschuss unterstützt das zentrale Risikomanagement bei der

ordnungsgemäßen Umsetzung des Risikomanagementprozesses. Er beurteilt und

genehmigt Änderungen in Bezug auf die (Bewertungs-)Methodik und definiert Art und

Umfang der Risikoberichterstattung. Mitglieder des Risikoarbeitsausschusses auf

Konzernebene sind die Leiter der Konzernfunktionen Controlling, Recht und Public Affairs,

Finanzwesen, Rechnungswesen, Interne Revision, der Chief Compliance Officer (CCO)

sowie ein (unternehmensinterner) energiewirtschaftlicher Experte.

Konzernrisikoausschuss und Kontrolle

Im Konzernrisikoausschuss, der aus dem Vorstand der EVN AG, den Leitern der

Organisationseinheiten und den Mitgliedern des Risikoarbeitsausschusses besteht, werden

die Ergebnisse der Risikoinventur sowie die Berichte präsentiert und diskutiert. Er

entscheidet über den weiteren Handlungsbedarf, kann Arbeitsgruppen einberufen sowie

Arbeitsaufträge erteilen und verabschiedet die Ergebnisse der Risikoinventur

(Risikoberichte).

Risikoprofil

Neben den branchenüblichen Risiken und Ungewissheiten ist das Risikoprofil der EVN vor

allem durch politische, rechtliche und regulatorische Herausforderungen und

Veränderungen im Wettbewerbsumfeld geprägt. Im Rahmen der jährlich durchgeführten

Risikoinventur, deren Ergebnisse im Bedarfsfall um Ad-hoc-Risikomeldungen aktualisiert

werden, erfolgt eine Kategorisierung in Markt- und Wettbewerbs-, Finanz-, Betriebs-,

Umfeld-, Strategie- und Planungsrisiken sowie sonstige Risiken. Diese werden großteils

bezüglich ihrer finanziellen Auswirkungen auf den EVN Konzern bewertet. In der

nachfolgenden Tabelle werden die entsprechend diesen Kategorien ermittelten

wesentlichen Risiken sowie Maßnahmen zu deren Minimierung beschrieben.

In der Risikoinventur werden in der EVN im Sinn des NaDiVeG sowohl potenzielle Risiken

als auch Auswirkungen der Geschäftstätigkeit der EVN und ihrer Geschäftsbeziehungen

auf Umwelt-, Sozial- und Arbeitnehmerbelange, die Achtung der Menschenrechte und die

Bekämpfung von Korruption systematisch erhoben. Die identifizierten Risiken bzw.

Auswirkungen wurden entsprechend den im Risikomanagementprozess vorgesehenen

Schritten weiter behandelt.

Potenzielle Klimarisiken

Angesichts des hohen Stellenwerts des Themas Klimaschutz bei der EVN werden im Zuge

der Risikoinventur gezielt auch potenzielle Klimarisiken erhoben. Klimarisiko ist jedoch

bewusst nicht als eigene Risikokategorie definiert, sondern wird – sofern zutreffend – als

Querschnittsmaterie den einzelnen Risikokategorien der EVN zugeordnet. Dabei wird

zwischen Transitionsrisiken und physischen Risiken unterschieden.

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Zu den Transitionsrisiken zählen Unsicherheiten, die aus dem Übergang in Richtung eines

erneuerbaren Energiesystems resultieren. Physische Risiken betreffen hingegen

Ereignisse und Veränderungen, die unmittelbare klimatische Ursachen haben.

Im Folgenden einige Beispiele, die die Zuordnung potenzieller Klimarisiken zu den

Risikokategorien der EVN illustrieren:

• Nachfragerückgang aufgrund eines milderen Winters: physisches Risiko, das der

Kategorie Deckungsbeitragsrisiko zugeordnet wird

• Rückgang der Stromproduktion durch ein klimabedingt geringes Wasserdargebot:

physisches Risiko, das der Kategorie Deckungsbeitragsrisiko zugeordnet wird

• Schaden durch ein Extremwetterereignis: physisches Risiko, das der Kategorie

Störungen/Netzausfall zugeordnet wird

• Änderung von Umweltauflagen: Transitionsrisiko, das der Kategorie Umfeldrisiko

zugeordnet wird; strengere Auflagen könnten potenziell Mehrkosten verursachen

• Zunehmende Belastung für das Stromnetz durch den laufenden Ausbau der deutlich

volatileren, erneuerbaren Erzeugung: Transitionsrisiko, das der Kategorie Betriebsrisiko

(Störungen/Netzausfall) zugeordnet wird

Risiko- und Chancenanalysen im Geschäftsjahr 2022/23

Vor dem Hintergrund der geopolitischen Krisen während der vergangenen beiden Jahre

und der daraus resultierenden Verwerfungen auf den Energiemärkten führt EVN auch

unterjährig ein engmaschiges Monitoring der Risikoentwicklung für die Gruppe durch. Ad-

hoc-Analysen waren im Berichtszeitraum nicht erforderlich, es erfolgte jedoch zum Ende

des ersten Halbjahres 2022/23 eine Aktualisierung der Bewertung der wesentlichen

Risiken mit potenziell hohen Auswirkungen. Das Risikomanagement berichtete über diese

Risiken sowie deren Auswirkungen auch dem Prüfungsausschuss des Aufsichtsrats der

EVN.

In der zum Bilanzstichtag durchgeführten Risikoinventur wurden u. a. folgende wesentliche

Unsicherheiten mit potenziell hohen Auswirkungen identifiziert und folglich mit besonderem

Augenmerk analysiert (Auswahl):

• Margenrisiko und Wettbewerbssituation; Weitergabemöglichkeit der

Energiebeschaffungskosten an Endkunden

• Inflationsbedingt steigende Beschaffungskosten für Investitionen und

Instandhaltungsmaßnahmen

• Fertigstellungsrisiko bei internationalen Großprojekten im Umweltbereich

• Cybersecurity

Das Risikoprofil des EVN Konzerns ist vor allem durch die branchenüblichen Risiken und

Ungewissheiten und insbesondere durch politische, rechtliche und regulatorische

Herausforderungen geprägt. Die Kategorisierung all dieser Aspekte folgt dem

Risikomanagementprozess der EVN.

Wesentliche Merkmale des internen Kontroll- und -Risikomanagementsystems im

Hinblick auf den Rechnungslegungsprozess

Die Einrichtung eines angemessenen internen Kontroll- und Risikomanagementsystems

(IKS) im Hinblick auf den Rechnungslegungsprozess liegt gemäß § 82 AktG in der

Verantwortung des Vorstands und ist gemäß § 92 Abs. 4a Z. 4b AktG vom

Prüfungsausschuss auf seine Wirksamkeit hin zu überwachen.

Das IKS für den Rechnungslegungsprozess der EVN wird durch Kontrollen der

identifizierten risikobehafteten Prozesse in regelmäßigen Abständen überwacht, und die

Ergebnisse daraus werden dem Management und dem Prüfungsausschuss berichtet. Das

IKS gewährleistet klare Zuständigkeiten und eliminiert überflüssige Prozessschritte,

wodurch die Sicherheit in den Abläufen für die Erstellung der Finanzberichterstattung

weiter erhöht wird.

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Die Beschreibung der wesentlichen Merkmale besteht aus den fünf zusammenhängenden

Komponenten Kontrollumfeld, Risikobeurteilung, Kontrollmaßnahmen, Information und

Kommunikation sowie Überwachung.

Kontrollumfeld

Der von der EVN festgelegte Verhaltenskodex und die darin zugrunde gelegten

Wertvorstellungen gelten für alle Mitarbeiter des gesamten Konzerns. Zum EVN

Verhaltenskodex siehe www.evn.at/verhaltenskodex.

Die Erstellung des Jahresabschlusses erfolgt durch die kaufmännischen Konzernfunktionen

der EVN. Der Abschlussprozess der EVN basiert auf einer einheitlichen

Bilanzierungsrichtlinie, die neben den Bilanzierungsvorschriften auch die wesentlichen

Prozesse und Termine konzernweit festlegt. Für die konzerninternen Abstimmungen und die

sonstigen Abschlussarbeiten bestehen verbindliche Anweisungen. Die am

Rechnungslegungsprozess beteiligten Mitarbeiter erfüllen die qualitativen Anforderungen

und werden regelmäßig geschult. Komplexe versicherungsmathematische Gutachten und

Bewertungen werden durch darauf spezialisierte Dienstleister oder qualifizierte Mitarbeiter

erstellt. Für die Einhaltung der Prozesse sowie der korrespondierenden Kontrollmaßnahmen

sind die jeweiligen Prozessverantwortlichen – das sind im Wesentlichen die Leiter der

Organisationseinheiten sowie der Konzernfunktionen – verantwortlich.

Risikobeurteilung und Kontrollmaßnahmen

Zur Vermeidung von wesentlichen Fehldarstellungen bei der Abbildung von Transaktionen

wurden mehrstufig aufgebaute Sicherungsmaßnahmen mit dem Ziel implementiert, dass

die Einzelabschlüsse sämtlicher Tochtergesellschaften richtig erfasst werden. Diese

Maßnahmen umfassen sowohl automatisierte Kontrollen in der Konsolidierungssoftware

als auch manuelle Kontrollen in den kaufmännischen Konzernfunktionen. Auf Basis der

Abschlüsse der Tochterunternehmen führen diese Fachabteilungen umfangreiche

Plausibilitätsüberprüfungen durch, damit die Daten der Einzelabschlüsse ordnungsgemäß

in den Konzernabschluss übernommen werden. Die Überprüfung der Abschlussdaten sieht

vor, dass die Daten vor und nach der Konsolidierung zentral auf Positions-, Segment- und

Konzernebene analysiert werden. Erst nach Durchführung dieser Qualitätskontrollen auf

allen Stufen erfolgt die Freigabe des Konzernabschlusses.

Das Rechnungswesen der EVN AG und der wichtigsten in- und ausländischen

Tochtergesellschaften wird mit dem ERP-Softwaresystem SAP, Modul FI (Finanz-

/Rechnungswesen) geführt. Die Erstellung des Konzernabschlusses nach IFRS erfolgt mit

der Software Hyperion Financial Management, in die die Werte der Einzelabschlüsse der

konsolidierten Gesellschaften mittels Schnittstelle übernommen werden. Die

Rechnungswesensysteme sowie alle vorgelagerten Systeme sind durch

Zugriffsberechtigungen und automatische sowie zwingend im Prozess vorgesehene

manuelle Kontrollschritte geschützt.

Das IKS für die Finanzberichterstattung und die für das Rechnungswesen relevanten

Prozesse werden mindestens einmal jährlich vom zuständigen Assessor dahingehend

überprüft, ob die Kontrollen durchgeführt worden sind, ob es im Geschäftsjahr

Risikovorfälle gegeben hat und ob die Kontrollen weiterhin geeignet sind, die vorhandenen

Risiken abzudecken. Im Berichtszeitraum wurden im Sinn der kontinuierlichen

Weiterentwicklung des IKS für die Finanzberichterstattung Prozessanpassungen und -

verbesserungen durchgeführt.

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Information, Kommunikation und Überwachung

Der Aufsichtsrat wird vom Vorstand vierteljährlich mit einem umfassenden Bericht über die

Vermögens-, Finanz- und Ertragslage, der sowohl eine Bilanz als auch eine Gewinn-und-

Verlust-Rechnung enthält, informiert. Darüber hinaus ergeht zweimal jährlich ein Bericht

über das IKS für die Finanzberichterstattung an den Vorstand und den Prüfungsausschuss,

der als Informationsgrundlage zur Beurteilung der Effizienz und Effektivität des IKS dient

und die Steuerbarkeit des IKS durch die dafür vorgesehenen Gremien gewährleisten soll.

Dieser Bericht erfolgt durch das IKS-Management in Zusammenarbeit mit dem IKS-

Komitee auf Basis der Informationen der IKS-Bereichsverantwortlichen, der

Kontrolldurchführenden und der Assessoren.

Zur Wahrnehmung der Überwachungs- und Kontrollfunktion im Hinblick auf eine

ordnungsgemäße Rechnungslegung und Berichterstattung werden die relevanten

Informationen zudem auch den Leitungsorganen und wesentlichen Mitarbeitern der

jeweiligen Gesellschaft zur Verfügung gestellt. Die Interne Revision der EVN führt

regelmäßig Prüfungen des IKS für die Finanzberichterstattung durch, deren Ergebnisse

ebenfalls bei den laufenden Verbesserungen des IKS Berücksichtigung finden.

Einsatz von Finanzinstrumenten

Die EVN setzt derivative Finanzinstrumente zur Absicherung des Unternehmens gegen

Marktpreisänderungs-, Liquiditäts-, Wechselkurs- und Zinsänderungsrisiken ein. Zu diesem

Zweck hat das Unternehmen ein Kontrollumfeld geschaffen, welches im Rahmen des

Risikomanagements Richtlinien und Abläufe für die Beurteilung der Anwendung von

Derivaten umfasst. Weitere Informationen finden sich im Anhang der EVN AG im Kapitel

3.2.7.

Gesamtrisikoprofil

Neben den Ungewissheiten im Zusammenhang mit Geschäftsfeldern und -betrieben

außerhalb Österreichs ist die EVN auch im Heimmarkt Niederösterreich mit einem

weiterhin herausfordernden Umfeld konfrontiert. Im Geschäftsjahr 2022/23 haben die

Unsicherheiten allerdings abgenommen. Damit hat sich das Gesamtrisikoprofil der EVN

tendenziell reduziert, jedoch noch nicht bis auf das Vorkrisenniveau. Gegenwärtig sind

keine Risiken für die Zukunft erkennbar, die den Fortbestand des EVN Konzerns gefährden

könnten.

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In der folgenden Tabelle werden die wesentlichen Risiken und Ungewissheiten

zusammenfassend erläutert. Erstmals werden in dieser Tabelle, sofern zutreffend, auch die

Chancen für die einzelnen Kategorien erwähnt.

Risiko-/Chancenkategorie

Beschreibung

Maßnahme

zur

Risikominimierung

Markt- und Wettbewerbsrisiken/-chancen

Deckungsbeitragsrisiko/-

chance

(Preis- und

Mengeneffekte)

Energievertrieb und -produktion:

Nichterreichen der geplanten

Deckungsbeiträge

•

Volatile bzw. vom Plan

abweichende Bezugs-

und Absatzpreise (insb. für

Energieträger)

•

Nachfragerückgänge (insb.

beeinflusst durch Witterung

bzw. Klimawandel, Politik,

Reputation oder Wettbewerb)

•

Rückgang der Eigenerzeugung

•

Rückgang des Projektvolumens

im Umweltbereich (insb. infolge

Marktsättigung, eingeschränkter

Ressourcen für

Infrastrukturprojekte oder

Nichtberücksichtigung bzw.

Unterliegen bei

Ausschreibungen)

Potenzielles Klimarisiko

Auf das Marktumfeld abgestimmte

Beschaffungsstrategie;

Absicherungsstrategien;

Diversifizierung

der Kundensegmente sowie

Geschäftsfelder;

auf Kundenbedürfnisse

abgestimmte Produktpalette;

längerfristiger Verkauf von

Kraftwerkskapazitäten

Lieferantenrisiko

Überschreiten der geplanten

(Projekt-)Kosten;

mangelhafte Erfüllung oder

Nichterfüllung vertraglich

zugesagter Leistungen

Partnerschaften; möglichst

weitgehende

vertragliche Absicherung; externe

Expertise

Finanzrisiken

Fremdwährungsrisiken

Transaktionsrisiken

(Fremdwährungskursverluste) und

Translationsrisiken bei der

Fremdwährungsumrechnung im

Konzernabschluss; nicht

währungskonforme Finanzierung

von Konzerngesellschaften

Überwachung; Limits;

Absicherungsinstrumente

Liquiditäts-, Cash-Flow-

und

Finanzierungsrisiko

Nicht fristgerechte Begleichung

eingegangener

Verbindlichkeiten; Risiko,

erforderliche

Liquidität/Finanzmittel bei Bedarf

nicht zu den erwarteten

Konditionen beschaffen zu

können

; potenzielles Klimarisiko

Langfristig abgestimmte und

zentral gesteuerte Finanzplanung;

Absicherung des benötigten

Finanzmittelbedarfs (u. a. durch

Kreditlinien)

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Preis-

/Kursänderungsrisiken/-

chancen

Kurs-/Wertverluste bei

Veranlagungspositionen

(z. B. Fonds) und börsenotierten

strategischen Beteiligungen (z. B.

Verbund AG, Burgenland

Holding AG)

; potenzielles

Klimarisiko

Monitoring des Verlustpotenzials

mittels

täglicher Value-

-Risk-Ermittlung;

Anlagerichtlinien

Counterparty-

/Kreditrisiken

(Ausfallrisiken)

Vollständiger/teilweiser Ausfall

einer von einem

Geschäftspartner oder Kunden

zugesagten Leistung

Vertragliche Konstruktionen;

Bonitäts-Monitoring und

Kreditlimitsystem; laufendes

Monitoring des Kundenverhaltens;

Absicherungsinstrumente;

Versicherungen; gezielte

Diversifizierung der

Geschäftspartner

Beteiligungsrisiken

Nichterreichen der Gewinnziele

einer kerngeschäftsnahen

Beteiligungsgesellschaft

;

potenzielles Klimarisiko

Vertretung in Gremien der

jeweiligen

Beteiligungsgesellschaft

Rating-Veränderung

Bei Verringerung der Rating-

Einstufung höhere

Refinanzierungskosten

;

potenzielles Klimarisiko

Sicherstellung der Einhaltung

relevanter

Finanzkennzahlen

Zinsänderungsrisiken

Veränderungen der Marktzinsen;

steigender Zinsaufwand; negative

Auswirkungen eines niedrigen

Zinsniveaus auf die Bewertung

von Vermögenswerten und

Rückstellungen sowie auf künftige

Tarife

Einsatz von

Absicherungsinstrumenten;

Zinsbindung in

Finanzierungsverträgen

Wertminderungs-

/Impairment-Risiken

Wertberichtigung von

Forderungen; Wertminderung von

Firmenwerten, Beteiligungen,

Erzeugungsanlagen und

sonstigen Vermögenswerten

(Wirtschaftlichkeit/Werthaltigkeit

maßgeblich von Strom-

und

Primärenergiepreisen und

energiewirtschaftlichen

Rahmenbedingungen abhängig)

;

potenzielles Klimarisiko

Monitoring mittels

Sensitivitätsanalysen

Haftungsrisiko

Finanzieller Schaden durch

Schlagendwerden von

Eventualverbindlichkeiten

;

potenzielles Klimarisiko

Haftungen auf erforderliches

Mindestmaß

beschränken; laufendes

Monitoring

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Strategie- und Planungsrisiken

Technologierisiko

Spätes Erkennen von und

Reagieren auf neue

Technologien (verzögerte

Investitionstätigkeit) bzw. auf

Veränderungen von

Kundenbedürfnissen;

Investitionen in die „falschen“

Technologien; potenzielles

Klimarisiko

Aktive Teilnahme an externen

Forschungsprojekten; eigene

Demonstrationsanlagen und

Pilotprojekte; ständige Anpassung

an den Stand der Technik

Planungsrisiko

Modellrisiko; Treffen von falschen

bzw. unvollständigen Annahmen;

Opportunitätsverluste

Wirtschaftlichkeitsbeurteilung

durch erfahrene, gut ausgebildete

Mitarbeiter; Monitoring der

Parameter und regelmäßige

Updates; Vier-Augen-Prinzip

Organisatorische Risiken

Ineffiziente bzw. ineffektive

Abläufe und Schnittstellen;

Doppelgleisigkeiten

; potenzielles

Klimarisiko

Prozessmanagement;

Dokumentation; internes

Kontrollsystem (IKS)

Betriebsrisiken

Infrastrukturrisiken

Falsche Auslegung und Nutzung

der technischen Anlagen

;

potenzielles Klimarisiko

Beheben von technischen

Schwachstellen;

regelmäßige Kontrollen und

Überprüfungen

der vorhandenen und künftig

benötigten

Infrastruktur

Störungen/Netzausfall

(Eigen-

und

Fremdanlagen), Unfälle

Versorgungsunterbrechung;

Gefährdung von Leib und Leben

bzw. Infrastruktur durch

Explosionen/Unfälle

; potenzielles

Klimarisiko

Technische Nachrüstung bei den

Schnittstellen der

unterschiedlichen Netze; Ausbau

und Instandhaltung der

Netzkapazitäten

IT-/Sicherheitsrisiken

(inkl. Cybersecurity)

Systemausfälle; Datenverlust

bzw. unbeabsichtigter

Datentransfer; Hackerangriffe

Stringente (IKT-)System- und

Risikoüberwachung; Back-

up-

Systeme; technische Wartung;

externe Prüfung;

Arbeitssicherheitsmaßnahmen;

Krisenübungen

Mitarbeiterrisiken

Verlust von hochqualifizierten

Mitarbeitern; Ausfall durch

Arbeitsunfälle; personelle Über-

oder Unterkapazitäten;

Kommunikationsprobleme;

kulturelle Barrieren; Betrug;

bewusste bzw. unbewusste

Fehldarstellung von

Transaktionen bzw.

Jahresabschlussposten

Attraktives Arbeitsumfeld;

Gesundheits- und

Sicherheitsvorsorge; flexible

Arbeitszeitmodelle; Schulungen;

Veranstaltungen für Mitarbeiter

zum Informationsaustausch und

zum Networking; internes

Kontrollsystem (IKS)

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Umfeldrisiken

Gesetzgebungs-

regulatorische und

politische

Risiken/Chancen

Veränderung der politischen und

rechtlichen Rahmenbedingungen

sowie des regulatorischen

Umfelds (z. B. Umweltgesetze,

wechselnde rechtliche

Rahmenbedingungen, Änderung

des Förderregimes,

Marktliberalisierung in

Südosteuropa); politische und

wirtschaftliche Instabilität;

Netzbetrieb: Nichtanerkennung

der Vollkosten des Netzbetriebs

im Netztarif durch den Regulator

;

potenzielles Klimarisiko

Zusammenarbeit mit

Interessenvertretungen,

Verbänden und Behörden auf

regionaler, nationaler und

internationaler Ebene;

angemessene Dokumentation und

Leistungsverrechnung

Rechts- und

Prozessrisiko

Nichteinhalten von Verträgen;

Prozessrisiko aus diversen

Verfahren; regulatorische bzw.

aufsichtsrechtliche Prüfungen

Vertretung in lokalen, regionalen,

nationalen und

-weiten

Interessenvertretungen;

Rechtsberatung

Soziales und

gesamtwirtschaftliches

Umfeld

Konjunkturelle Entwicklungen;

Schulden-/Finanzkrise;

stagnierende oder rückläufige

Kaufkraft; steigende

Arbeitslosigkeit

; potenzielles

Klimarisiko

Weitestgehende Ausschöpfung

von (anti-) zyklischen

Optimierungspotenzialen

Vertragsrisiken

Nichterkennen von Problemen im

juristischen, wirtschaftlichen und

technischen Sinn; Vertragsrisiko

aus Finanzierungsverträgen

Umfassende Legal Due Diligence;

Zukauf von

Expertise/Rechtsberatung;

Vertragsdatenbank und laufendes

Monitoring

Sonstige Risiken

Unerlaubte

Vorteilsgewährung,

Non-Compliance,

Datenschutzrechtliche

Vorfälle

Weitergabe vertraulicher interner

Informationen an Dritte und

unerlaubte

Vorteilsgewährung/Korruption;

Verletzung des Schutzes

personenbezogener Daten

Interne Kontrollsysteme;

einheitliche Richtlinien

und Standards; Verhaltenskodex;

Compliance-Organisation

Projektrisiko

Projektbudgetüberschreitungen

beim Aufbau neuer Kapazitäten

;

potenzielles Klimarisiko

Vertragliche Absicherung der

wirtschaftlichen

Parameter

Co-Investment-Risiko

Risiken im Zusammenhang mit

der Durchführung von

Großprojekten gemeinsam mit

Partnerunternehmen

; potenzielles

Klimarisiko

Vertragliche Absicherung;

effizientes Projektmanagement

Sabotage

Sabotage z. B. bei

Erdgasleitungen,

Kläranlagen und

Müllverbrennungsanlagen

Geeignete

Sicherheitsvorkehrungen;

regelmäßige Messung der

Wasserqualität und der

Emissionswerte

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Imagerisiko

Reputationsschaden

; potenzielles

Klimarisiko

Transparente und proaktive

Kommunikation;

nachhaltige

Unternehmenssteuerung

EVN Aktie (Angaben nach § 243a Abs. 1 UGB)

1. Per 30. September 2023 betrug das Grundkapital der EVN AG 330.000.000 Euro und

war unterteilt in 179.878.402 Stück auf Inhaber lautende nennwertlose Stückaktien, die

jeweils im gleichen Umfang am Grundkapital beteiligt sind. Der Anspruch auf

Einzelverbriefung der Aktien ist ausgeschlossen. Es existiert nur diese eine

Aktiengattung. Alle Aktien verkörpern die gleichen Rechte und Pflichten und werden auf

dem Prime Market der Wiener Börse gehandelt.

2. Es gibt keine über die Bestimmungen des Aktiengesetzes hinausgehenden

Beschränkungen der Stimmrechte bzw. Vereinbarungen über die Beschränkung der

Übertragbarkeit von Aktien. Hinzuweisen ist jedoch darauf, dass die Übertragbarkeit der

Beteiligung des Landes Niederösterreich, das seine Anteile über die NÖ Landes-

Beteiligungsholding GmbH, St. Pölten, hält, durch bundes- und

landesverfassungsgesetzliche Bestimmungen eingeschränkt ist.

Die NÖ Landes-Beteiligungsholding GmbH („NLH“) und die Wiener Stadtwerke GmbH

(„WSTW“) haben am 23. September 2021 eine steuerliche Beteiligungsgemeinschaft

gegründet, wofür sie einen „Vertrag über die Bildung einer steuerlichen

Beteiligungsgemeinschaft betreffend Anteile der Parteien an der EVN AG“

abgeschlossen haben. Dieser Vertrag sieht grundsätzlich eine syndizierte Ausübung der

Stimmrechte von NLH und WSTW in der Hauptversammlung der EVN AG vor, bildet

aber nur das sich ohnehin nach Gesetz und/oder Satzung auf Grund des jeweiligen

Aktienbesitzes von NLH und WSTW ergebende Stimmgewicht in der Hauptversammlung

ab (im Ergebnis verfügt NLH weiterhin über die einfache (nicht aber eine qualifizierte)

Mehrheit und WSTW weiterhin über eine Sperrminorität).

3. Auf Basis dieser verfassungsrechtlichen Vorschriften ist das Land Niederösterreich mit

51,0 % Mehrheitsaktionär der EVN AG. Zweitgrößter Aktionär der EVN AG ist mit 28,4 %

die Wiener Stadtwerke GmbH, Wien, die zu 100 % im Eigentum der Stadt Wien steht.

Der Anteil der von der EVN AG gehaltenen eigenen Aktien betrug zum Stichtag 0,9 %;

der Streubesitz belief sich somit auf 19,7 %.

4. Es wurden keine Aktien mit besonderen Kontrollrechten ausgegeben.

5. Mitarbeiter, die im Besitz von Aktien sind, üben ihr Stimmrecht unmittelbar selbst bei der

Hauptversammlung aus. Es besteht in der EVN AG kein Aktienoptionsprogramm.

6. Der Vorstand besteht aus mindestens zwei Mitgliedern. Der Aufsichtsrat besteht aus

mindestens acht und höchstens zwölf Mitgliedern. Sofern das Gesetz nicht zwingend

eine andere Mehrheit vorschreibt, beschließt die Hauptversammlung mit einfacher

Mehrheit der abgegebenen Stimmen und in Fällen, in denen eine Kapitalmehrheit

erforderlich ist, mit einfacher Mehrheit des bei der Beschlussfassung vertretenen

Grundkapitals.

7. Befugnisse des Vorstands im Sinn des § 243a Abs. 1 Z. 7 UGB, insbesondere

hinsichtlich der Möglichkeit, Aktien auszugeben, bestanden im Geschäftsjahr 2022/23

nicht. Davon unberührt blieb jedoch die Möglichkeit, bereits zurückgekaufte eigene

Aktien an Mitarbeiter auszugeben.

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8. Aufgrund der oben, insbesondere in Punkt 2. und 3., erwähnten Rechtslage kann in der

EVN AG derzeit ein Kontrollwechsel im Sinn des § 243a Abs. 1 Z. 8 UGB nicht eintreten.

Dasselbe gilt für allfällige Folgewirkungen eines Kontrollwechsels.

9. Entschädigungsvereinbarungen zugunsten von Organen oder Mitarbeitern für den Fall

eines öffentlichen Übernahmeangebots bestehen nicht.

NICHTFINANZIELLE ERKLÄRUNG (ANGABEN NACH § 243b UGB)

Die vorliegende nichtfinanzielle Erklärung erfüllt die Anforderungen der EU-Richtlinie

2014/95/EU zur Angabe nichtfinanzieller und die Diversität betreffender Informationen (NFI-

Richtlinie), in Österreich umgesetzt durch das Nachhaltigkeits- und

Diversitätsverbesserungsgesetz (NaDiVeG). Hinsichtlich der Angaben zu Diversität wird auf

den Corporate Governance-Bericht verwiesen. Dieser findet sich unter

www.evn.at/corporate-governance-bericht.

Zur konzernweiten Darstellung der nichtfinanziellen Informationen wurde die Option gewählt,

einen eigenständigen nichtfinanziellen Bericht zu erstellen. Die gemäß NaDiVeG geforderten

Informationen zu Umwelt-, Sozial- und Arbeitnehmerbelangen, zur Achtung der

Menschenrechte und zur Bekämpfung von Korruption des EVN Konzerns finden sich im

Berichtsteil „Nichtfinanzieller Bericht“ des EVN Ganzheitsberichts 2022/23 und sind zur

besseren Orientierung zudem eigens im Inhaltsverzeichnis gekennzeichnet.

Geschäftsmodell

Die Aktivitäten der international tätigen EVN Gruppe umfassen das Energie- und das

Umweltgeschäft. Der Hauptsitz des Unternehmens befindet sich in Niederösterreich, weitere

Kernmärkte sind Bulgarien und Nordmazedonien. Insgesamt ist die EVN Gruppe derzeit in

14 Ländern aktiv.

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Operative Geschäftsbereiche der EVN Gruppe

Unser integriertes Geschäfts-

modell deckt die gesamte

Wertschöpfungskette ab:

• Erzeugung von Energie

• Betrieb von Verteilnetzen

• Versorgung von Endkund*in

nen mit Strom, Erdgas und

Wärme (mitunterschied lichen

Schwerpunkten in unseren

verschiedenen Märkten)

Das Umweltgeschäft umfasst

folgende Aktivitäten:

• Trinkwasserversorgung in

Niederösterreich

• Für das internationale Projekt

geschäft – es umfasst die

Planung, Errichtung, Finanzie

rung und Betriebsführung von

Anlagen für die Trinkwasser

ver- und die Abwasserent-

sorgung sowie die thermische

Abfall- und Klärschlamm-

verwertung – wurde im Sep

tember 2023 ein strukturierter

Verkaufsprozess initiiert

Kerngeschäftsnahe Beteiligungen

als Ergänzung und Absicherung

unserer Wertschöpfungskette:

• Verbund AG (12,63 %)

• Burgenland Holding (73,63 %),

die ihrerseits 49,0 % an der

Burgenland Energie hält

• RAG (50,03 %)

Geschäftsbereiche

Energiegeschäft Umweltgeschäft Beteiligungen

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EVN Wertschöpfungskette

Die in die nichtfinanzielle Erklärung einbezogenen Daten und Kennzahlen beziehen sich auf

die Muttergesellschaft des EVN Konzerns, der EVN AG, und umfassen den Zeitraum 1.

Oktober 2022 bis 30. September 2023.

Analyse wesentlicher Themen und Stakeholder-Einbeziehung

Die EVN bekennt sich zum Konzept der nachhaltigen Unternehmensführung und strebt in

diesem Sinn eine ausgewogene Berücksichtigung ökonomischer, ökologischer und sozialer

Gesichtspunkte an. Damit sind alle ethischen, sozialen und umweltbezogenen Aspekte –

sprich die Themenfelder Environment, Social und Governance (ESG) – umfasst, für die die

EVN auch den Überbegriff „Nachhaltigkeit“ verwendet. Ein angemessener Ausgleich der

Anliegen aller am Unternehmen Interessierten – der Stakeholder – ist dabei das Leitmotiv.

Grundlegende Aussagen zu Vision, Mission und Unternehmenswerten sowie verbindliche

Dokumente zu konzernweiten Verhaltens- und Handlungsregeln bilden gemeinsam das

Wertegerüst der EVN. Als Mitglied des UN Global Compact bekennt sie sich zudem explizit

zur Einhaltung globaler Prinzipien ethischen wirtschaftlichen Handelns.

Den Kern des Stakeholder-Managements bildet ein institutionalisierter Dialog mit den

diversen Stakeholder-Gruppen, die aus nachstehender Darstellung ersichtlich sind. Ihre

Identifikation und Priorisierung erfolgen regelmäßig im Rahmen der Aktualisierung der

Wesentlichkeitsmatrix. Dabei überprüft die EVN auch stets die Relevanz der einzelnen

Stakeholder-Gruppen für das Unternehmen.

Die EVN Wesentlichkeitsmatrix wird im Dreijahresrhythmus aktualisiert. Die letzte

Stakeholder-Befragung fand im Frühjahr 2021 statt. Dazu wurde eine repräsentative

Auswahl interner und externer Stakeholder ersucht, mittels Online-Fragebogen die Relevanz

der Handlungsfelder sowie deren Auswirkungen auf die Unternehmenstätigkeit zu beurteilen.

Ziel dieses strukturierten Erhebungsprozesses war es, auf jene Themen zu fokussieren, die

den höchsten Stellenwert für die Stakeholder der EVN aufweisen und gleichzeitig die

größten ökonomischen, ökologischen oder sozialen Auswirkungen auf die Geschäftstätigkeit

der EVN haben. Die wesentlichsten Themen und Handlungsfelder, auf die sich die

Berichterstattung konzentriert, sind jene, die in der Wesentlichkeitsmatrix eine mittlere bis

sehr hohe Relevanz für die EVN aufweisen. Im Rahmen eines Lenkungsausschusses

Nachhaltigkeit hat die EVN für den Berichtszeitraum validiert und bestätigt, dass die

wesentlichsten Themen und Handlungsfelder für die EVN weiterhin gültig sind.

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EVN Wesentlichkeitsmatrix 2022/23

Versorgungssicherheit

Klimaschutz

Kund*innenorientierung

Innovation und

Digitalisierung

Attraktive Arbeitgeberin

Umweltschutz

Stakeholder-Dialog

Nachhaltige Unternehmenswertsteigerung

Sehr hochDurchschnittliche Auswirkung der UnternehmenstätigkeitMittel

4,0 4,5 5,0 5,5 6,0

Mittel

Sehr hoch

Durchschnittliche Relevanz für Stakeholder

4,0 5,04,5 5,5 6,0

Wichtigste Stakeholder-Gruppen der EVN

Aufsichtsrat

Mitbewerber*innen

Mitarbeiter*innen

KapitalmarktKund*innen

Investor*innen

(institutionelle,

private)

Kreditgeber*innen

Analyst*innen

Vorstand

Führungskräfte

Geschäfts-

führer*innen

Politik

Behörden

Wissenschaft

Forschung

Zivilgesellschaft

Medien

Bürgerbeteiligungen

NGOs

Verbände

Branchenverbände

Betriebsrät*innen

Interessen-

vertretungen

Geschäfts-

partner*innen

Projekt-

anrainer*innen

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Handlungsfelder

Als Grundlage für den Abgleich zwischen der Strategie und den Stakeholder-Interessen dient

die EVN Wesentlichkeitsmatrix mit ihren acht Handlungsfeldern:

• Nachhaltige Unternehmenswertsteigerung

• Versorgungssicherheit

• Kundenorientierung

• Attraktive Arbeitgeberin

• Klimaschutz

• Umweltschutz

• Innovation und Digitalisierung

• Stakeholder-Dialog

Die nachstehende Tabelle liefert einen Überblick hinsichtlich der Zuordnung der einzelnen

Handlungsfelder zu den gemäß NaDiVeG geforderten Angaben und Leistungsindikatoren zu

den im Fokus stehenden Belangen in Bezug auf Umwelt, Soziales, Arbeitnehmer, Achtung

der Menschenrechte und Bekämpfung von Korruption.

EVN Handlungsfeld

Nichtfinanzielle Informationen gem.

NaDiVeG

Nachhaltige Unternehmenswertsteigerung

Strategie, Achtung der Menschenrechte,

Bekämpfung von Korruption

Versorgungssicherheit

Strategie

Kundenorientierung

Einbindung Stakeholder

Attraktiver Arbeitgeber

Arbeitnehmerbelange, Achtung der

Menschenrechte, Sozialbelange

Klimaschutz

Umweltbelange

Umweltschutz

Umweltbelange

Innovation und Digitalisierung

Strategie, Arbeitnehmerbelange

Stakeholder-Dialog

Einbindung der Stakeholder, Sozialbelange

Nachhaltigkeitsorganisation

Die folgende Darstellung illustriert die Nachhaltigkeitsorganisation der EVN, die – im

Einklang mit der europäischen Best Practice – insbesondere den folgenden Grundsätzen

folgt:

• In der EVN ist die Verantwortung für das Themenfeld Environment, Social, Governance

(ESG) – also sämtliche Aspekte und Agenden in Sachen Umweltschutz, Soziales und

nachhaltige Unternehmensführung – und deren Weiterentwicklung beim Gesamtvorstand

und damit auf der höchsten Unternehmensebene angesiedelt. Alle diese Themen fließen

in die EVN Nachhaltigkeitsstrategie ein, die ihrerseits von der (ebenfalls vom Vorstand

verantworteten) Konzernstrategie abgeleitet wird. Zudem tauscht sich der Vorstand

regelmäßig mit dem Aufsichtsrat zur Nachhaltigkeitsstrategie aus und berichtet diesem

quartalsweise über wesentliche Entwicklungen und Maßnahmen im ESG-Bereich.

Angesichts der hohen Relevanz von ESG-Themen und um die Nachhaltigkeitsexpertise

im Prüfungsausschuss noch stärker zu verankern, wurde im Geschäftsjahr 2022/23

zusätzlich eine Nachhaltigkeitsexpertin in den Prüfungsausschuss des Aufsichtsrats

bestellt.

• Vierteljährlich tagt zudem der Lenkungsausschuss Nachhaltigkeit, der sich aus dem

Gesamtvorstand, aus Führungskräften, aus Geschäftsführern der wesentlichen

österreichischen und internationalen Konzerngesellschaften sowie aus Mitgliedern eines

abteilungsübergreifenden Nachhaltigkeitsteams zusammensetzt. Das Gremium

behandelt aktuelle ESG-Themen, beschließt wesentliche ESG-Aktivitäten und stellt dank

seiner breiten Zusammensetzung sicher, dass die behandelten Strategien, Maßnahmen

und Ziele operativ auf den Gesamtkonzern ausgerollt und flächendeckend umgesetzt

werden.

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Die direkt dem Gesamtvorstand unterstellte Stabsstelle Innovation, Nachhaltigkeit und

Umweltschutz ist sowohl für die Koordination der Nachhaltigkeitsaktivitäten als auch für die

Themen Umwelt- und Klimaschutz verantwortlich. Im Rahmen von Managementklausuren,

insbesondere der zweimal jährlich stattfindenden ganztägigen Innovationsklausuren,

berichtet die Stabsstelle über die von ihr verantworteten Innovations- und

Forschungsprojekte. Wesentlicher Anspruch dieser Projekte ist ein positiver Beitrag zum

Umwelt- und Klimaschutz sowie zum Kundennutzen.

Die Stabsstelle Innovation, Nachhaltigkeit und Umweltschutz koordiniert außerdem ein

abteilungsübergreifendes Nachhaltigkeitsteam, das die Einhaltung der hohen

Nachhaltigkeitsstandards sowie die operative Weiterentwicklung und Umsetzung neuer

ESG-Aspekte in der EVN Gruppe sicherstellt. Auch im Nachhaltigkeitsteam stehen die für die

EVN Geschäftstätigkeit relevanten Aspekte des Klimawandels ganz oben auf der Agenda.

Zusätzlich zum kontinuierlichen Austausch mit internen Experten stehen dem Vorstand und

Aufsichtsrat mehrere Beiräte (z. B. EVN Kundenbeirat, Nachhaltigkeitsbeirat) zur Seite, in

denen externe Experten verschiedenster Fachrichtungen ihre Expertise und ihre

Außenperspektive zu ESG-Aspekten der EVN Tätigkeit einbringen.

Proaktive Einbindung der EVN Stakeholder

Die gesellschaftliche Akzeptanz der Geschäftstätigkeiten betrachtet die EVN als

Grundvoraussetzung für den langfristigen und nachhaltigen Unternehmenserfolg und für die

positive öffentliche Wahrnehmung der EVN. Oberstes Prinzip ist dabei die angemessene und

gut ausbalancierte Berücksichtigung jener Anliegen, die von verschiedenen Stakeholder-

Gruppen an die EVN herangetragen werden. Ein regelmäßiger, proaktiver und offener Dialog

mit diesen Stakeholdern ist daher auch im EVN Verhaltenskodex als wichtiger

Managementgrundsatz verankert.