Report of the Supervisory Board
Ladies and Gentlemen,
The 2015/16 financial year was characterised by the continuously challenging energy sector environment, above all due to the conversion of the energy system to renewable energy. Supported by its integrated business model, EVN remained well positioned in the reporting year and generated sound results. EVN’s primary goal is to provide customers with the highest possible supply security. A EUR 1bn investment programme with a focus on network infrastructure, renewable energy and water supplies was launched in 2013/14 to meet this goal and has now completed its third year on schedule. EVN’s thermal power plants are also in continual operational readiness to balance the fluctuations from renewable energy generation and ensure network stability. The further increase in the use of these power plant reserves during 2015/16 underscores the strong demand for reserve capacity to stabilise the networks.
Fulfilment of duties
The Supervisory Board actively monitored and supported EVN’s strategic steps as part of its designated responsibilities. Five plenary meetings and five committee meetings were held during the reporting year, in which the Supervisory Board fulfilled the tasks and duties required by legal regulations and the company’s by-laws. The Executive Board provided the Supervisory Board with regular, timely and comprehensive reports on all relevant aspects of business development, including the risk position and risk management of EVN and its key Group companies. This reporting, in particular, allowed the Supervisory Board to continuously supervise and support the Executive Board’s management activities. The control functions exercised by the Supervisory Board within the framework of open discussions with the Executive Board did not lead to any objections. Recommendations by the Supervisory Board were taken up by the Executive Board.
Corporate governance report, Austrian Corporate Governance Code
In a meeting on 12 December 2016, the Supervisory Board examined the corporate governance report as required by § 96 of the Austrian Stock Corporation Act and in accordance with an opinion published by the Austrian Financial Reporting and Auditing Committee. The analysis was based on a report issued by the Audit Committee on 30 November 2016 and did not lead to any objections.
EVN, as a listed company, is committed to compliance with the Austrian Corporate Governance Code. The Supervisory Board approved the implementation of the January 2015 version of the code by EVN beginning with the 2015/16 financial year. The Supervisory Board strives to consistently comply with the provisions of the code that relate to its activities. EVN complies with all rules concerning the cooperation between the Supervisory Board and the Executive Board and the internal procedures of the Supervisory Board, with two exceptions. These exceptions are specified in the corporate governance report.
Annual financial statements and consolidated financial statements
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna, was appointed to audit the financial statements for the 2015/16 financial year from 1 October 2015 to 30 September 2016. This firm examined the annual financial statements of EVN AG as of 30 September 2016, which were prepared in accordance with Austrian accounting regulations, and the management report submitted by the Executive Board. KPMG presented a written audit report on the audit and issued an unqualified opinion.
The Supervisory Board received and reviewed the auditor’s report. In accordance with § 92 of the Austrian Stock Corporation Act as amended by the Statutory Audit Amendment Act 2016, the Audit Committee reported to the Supervisory Board on the results of the audit and its effects on financial reporting.
Following a detailed analysis and discussions by the Audit Com- mittee and the Supervisory Board, the Supervisory Board approved the following documents that were submitted by the Executive Board: the annual financial statements as of 30 September 2016 together with the notes, management report and corporate governance report as well as the recommendation for the use of profits. The annual financial statements as of 30 September 2016 were thereby approved in accordance with § 96 (4) of the Austrian Stock Corporation Act.
The consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) and also audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna, which issued an unqualified opinion. The Audit Committee reviewed the consolidated financial statements together with the respective notes and management report and reported on these activities to the Supervisory Board which subsequently approved these documents.
In conclusion, the Supervisory Board would like to thank the Executive Board and all employees of the EVN Group for their performance and commitment during the 2015/16 financial year. Special thanks are also directed to EVN’s shareholders, customers and partners for their trust in the company.
Maria Enzersdorf, 12 December 2016
On behalf of the Supervisory Board: