Ladies and gentlemen!

In the 2008/09 financial year, responsibly pursued its business strategy in the face of a difficult business environment which was negatively impacted by the global economic crisis. It determinedly relied on the two cornerstones of its business operations, i.e. energy and environmental services, with a geographical focus on Central and Eastern Europe. Accordingly, EVN rounded off its power generation portfolio with new projects in Albania and Bulgaria and took the initial steps required to penetrate a new regional market. Organic growth was also ensured by the ongoing optimisation of existing business areas. The Supervisory Board dealt with the specific country risks in detail within the context of its meetings and resolutions. In the Environmental Services segment, EVN achieved substantial success in its project business, similar to its achievements in recent years.

The Supervisory Board actively monitored and supported EVN’s strategic steps as part of its designated duties and responsibilities. It convened four times for plenary meetings during the 2008/09 financial year, at which 95% of the members were present on average. No member missed more than 50% of the meetings. The working committee convened three times during the period under review, whereas the audit committee met twice and the personnel committee a total of five times. The Executive Board reports provided the Supervisory Board with timely and comprehensive information about all relevant business development issues, the risk situation and the development of key Group subsidiaries. Thus the Supervisory Board was able to continually supervise and support the Executive Board’s management activities.

In the 2008/09 financial year, the key decisions of the Supervisory Board focused on the following issues:

• Appointment of two Executive Board members based on extending their employment contracts, and appointing two authorised signatories
• The coming into force of the EVN Code of Conduct, effective July 1, 2009
• The coming into effect of the Austrian Corporate Governance Code 2009, effective October 1, 2009
• The power plant projects in Albania (Ashta, Upper Drin, Devoll) and Bulgaria (Gorna Arda, Kavarna and Mogilishte Zapad wind parks, Plovdiv cogeneration facility)
• Acquisition of Linz AG’s shareholding in EconGas
• The Traunreut geothermal energy project (Germany) in cooperation with Rohöl-Aufsuchungs AG
• Submission of an offer to acquire the concession to expand the natural gas distribution system in the Zadar, Split-Dalmatia and Sibenik-Knin administrative divisions in Croatia
• Financing and assumption of liability and granting of guarantees for Group subsidiaries
• Partial compensation for the loss of entitlement on the part of beneficiaries of EVN Pensionskasse AG
• Matters pertaining to the commercial properties owned by EVN

The resolutions passed by the working committee in the 2008/09 financial year primarily related to the following issues:

• Cooperation agreement between NÖ Landes-Beteiligungsholding GmbH and EVN AG
• Share purchase of B.net Burgenland (B.net Burgenland Telekom GmbH and Dataservice GmbH)
• Exercising of subscription rights within the context of the capital increase of Wiener Börse AG

The personnel committee dealt with issues pertaining to the relationship of the company to the members of the Executive Board. It made a proposal to the Supervisory Board in respect to the appointment of two Executive Board members on the basis of extending their existing employment contracts, and approved the assumption of an external Supervisory Board mandate by a member of the Executive Board.

In anticipation of legal regulations which were to take effect at a later date, meetings of the audit committee took place in the 2008/09 financial year. In addition to the session discussed in detail the consolidated financial statements for 2007/08, a further meeting focused on the results for the first half of 2008/09 and the outlook for the rest of the financial year, current developments in Macedonia, medium-term financial planning and the long-term financial outlook for the EVN Group. Preliminary reports were presented on the risk management system of the EVN Group and the project “Risk-oriented internal controlling system” (RIKS). Within the context of preparing the annual financial statements of the company, the audit committee discussed the internal controlling, auditing and risk management systems in detail.

KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna appointed as EVN’s certified public accountants for the 2008/09 financial year, starting October 1, 2008 and ending on September 30, 2009, examined the annual accounts of EVN AG as at September 30, 2009, which were prepared in accordance with Austrian accounting regulations, as well as the Management Report submitted by the Executive Board and the Corporate Governance Report. KPMG presented a written audit report, and issued an unqualified opinion. Following detailed scrutiny and discussions in the audit committee and the entire body, the Supervisory Board approved the financial statements and the consolidated financial statements as at September 30, 2009 submitted by the Executive Board, the related Management Report and the proposals for the distribution of profits. The financial statements as at September 30, 2009 are thereby approved, pursuant to § 125 (2) of the Austrian Stock Corporation Act. These statements were prepared pursuant to International Financial Reporting Standards (IFRS) and audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna, which issued an unqualified opinion. The Supervisory Board approved the consolidated financial statements, the explanatory notes and the Management Report.

In closing, the Supervisory Board wishes to express its sincere gratitude to the Executive Board and all employees of the EVN Group for their endeavours, hard work and commitment during the 2008/09 financial year. Particular thanks are extended to the shareholders, customers and partners of the EVN for their confidence in the company.

Maria Enzersdorf, December 9, 2009

On behalf of the Supervisory Board:

President Rudolf Gruber
Chairman of the Supervisory Board