The EVN share
Market environment and performance
Developments on the international stock markets were generally positive during the 2015/16 financial year. A weak phase at the beginning of 2016 and increased volatility were combined with short-term losses that resulted from the June referendum over the exit of the United Kingdom from the European Union. This was followed by sound performance on the key stock markets, above all during the third quarter of the year – by both the US benchmark index Dow Jones, which rose by 12.4% from October 2015 to September 2016, and the German benchmark index DAX, which increased 8.8% during the same period. Vienna’s benchmark index ATX was also positive with an overall increase of 7.9%, above all due to sound performance at the end of the reporting period. In contrast, the DJ Euro Stoxx Utilities, the relevant industry index for EVN, rose by only 1.2%. The EVN share countered this development and followed the overall Austrian trend with a plus of 7.1%. The average daily turnover in EVN shares equalled 26,031 in 2015/16 (single counting). That represents an annual trading volume of EUR 65.8m (single counting) for EVN’s shares on the Vienna Stock Exchange and 0.24% of the total trading volume.
Share buyback programme
The 87th Annual General Meeting on 21 January 2016 prematurely terminated the share buyback programme that began on 16 January 2014 and approved a new share buyback programme. This new programme is based on the authorisation of the Executive Board to repurchase the company’s bearer shares during a period of 30 months (i) for distribution to employees of the company or its subsidiaries and (ii) in accordance with § 65 (1) no. 8 of the Austrian Stock Corporation Act (acquisition with no specific purpose) at an amount equalling up to 10% of the share capital of EVN. On 21 January 2016 the Executive Board voted to utilise this authorisation for a share buyback programme covering a period ending on 31 October 2016. A total of 90,000 shares, representing 0.05% of share capital were repurchased from 28 January to 30 September 2016 within the context of this new share buyback programme. EVN held 2,036,069 treasury shares as of 30 September 2016, including the shares repurchased in earlier years, which represent 1.1% of share capital.
On 5 October 2016 the Executive Board approved the premature termination of the current share buyback programme. The authorisation of the 87th Annual General Meeting of EVN AG remains intact and is still valid.
- GRI indicator: Nature of ownership and legal form (G4-7)
Strategy for the use of financial resources and dividend
EVN‘s strategy for the use of its financial resources includes establishing a balance between its investment projects and attractive dividends for shareholders. This strategy is reflected in a targeted pay-out ratio equalling approximately 40% of Group net result over the long term. The 87th Annual General Meeting on 21 January 2016 approved a dividend of EUR 0.42 per eligible share, or EUR 74.7m in total, to the shareholders of EVN AG for the 2014/15 financial year. The ex-dividend day was 27 January 2016, and payment was made to shareholders on 29 January 2016.
The Executive Board will make a recommendation to the 88th Annual General Meeting on 19 January 2017, calling for the payment of a dividend of EUR 0.42 per eligible share for the 2015/16 financial year.
|Share price at 30 September||EUR||10.56||9.85||10.13|
|Total shareholder return||%||11.4||1.5||–6.6|
|Dow Jones Euro Stoxx Utilities performance||%||1.2||–15.7||23.2|
|Value of shares traded1)||EURm||65.8||79.2||120.4|
|Average daily turnover1)||Shares||26,031||31,598||45,167|
|Share of total turnover1)||%||0.24||0.29||0.53|
|Market capitalisation at 30 September||EURm||1,899||1,773||1,821|
|WBI (Vienna Stock Exchange Index) weighting||%||2.21||2.21||2.29|
|Earnings per share2)||EUR||0.88||0.83||–1.68|
|Dividend per share||EUR||0.423)||0.42||0.42|
|Cash flow per share2)4)||EUR||3.03||2.46||1.90|
|Book value per share2)||EUR||15.59||14.56||14.80|
|Price/earnings per share||X||12.0||11.8||–|
|Price/cash flow per share4)||X||3.5||4.0||5.3|
|Price/book value per share||X||0.7||0.8||0.8|
|1) Vienna Stock Exchange, single counting|
2) Shares outstanding at 30 September
3) Proposal to the Annual General Meeting
4) Gross cash flow