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Strategic Investments and Other Business

In the Strategic Investments and Other Business Segment, the earnings contributions from Rohöl-Aufsuchungs Aktiengesellschaft (RAG) and Energie Burgenland AG as well as the share of results from equity accounted investees with operational nature are reported in EBITDA. The earnings contributions from the shares in Verbund AG which are held directly by EVN, respectively indirectly by WEEV Beteiligungs GmbH are reported under financial results in this segment. This segment also includes corporate functions as well as companies outside EVN’s core business which generally provide internal services.

Highlights 2015/16

  • Lower earnings contribution from RAG
  • Higher earnings contribution from Energie Burgenland
  • Decline in EBITDA, EBIT and result before income tax
Key financial indicators –
Strategic Investments and Other Business
EURm2015/162014/15
+/-
nominal%
2013/14
External revenue 10.19.30.89.09.5
Internal revenue 58.155.42.74.861.5
Total revenue 68.264.73.55.471.0
Operating expenses –74.8–75.20.40.6–77.5
Share of results from equity accounted
investees with operational nature
 52.283.8–31.6–37.766.0
EBITDA 45.673.2–27.7–37.859.4
Depreciation and amortisation including
effects from impairment tests
 –1.6–2.71.140.7–1.7
Results from operating activities (EBIT) 43.970.5–26.6–37.757.6
Financial results 22.130.6–8.5–27.861.8
Result before income tax 66.1101.1–35.1–34.7119.4
Total assets 2,720.82,580.4140.45.42,750.3
Total liabilities 1,226.51,115.2111.410.01,116.5
Investments1) 1.92.5–0.6–23.32.5

Revenue, EBITDA and EBIT development

Revenue in this segment rose by EUR 3.5m, or 5.4%, to EUR 68.2m in 2015/16, while operating expenses remained nearly stable at EUR 74.8m (previous year: EUR 75.2m).

The share of results from equity accounted investees fell by EUR 31.6m, or 37.7%, to EUR 52.2m. This development resulted primarily from a year-on-year decline in the earnings contribution from RAG to EUR 42.3m (previous year: EUR 76.4m). The earnings contribution from Energie Burgenland, which is also included in this position, rose to EUR 9.9m (previous year: EUR 7.4m). In 2015/16 the Strategic Investments and Other Business Segment generated EBITDA of EUR 45.6m (previous year: EUR 73.2m) and EBIT of EUR 43.9m (previous year: EUR 70.5m).

Financial results and result before income tax

Financial results in this segment declined by EUR 8.5m, or 27.8%, to EUR 22.1m as the result of two contrary developments which were reported in the third quarter of 2015/16: the results from investments were increased by the higher dividend of EUR 0.35 per share from Verbund AG for the 2015 financial year (previous year: EUR 0.29 per share); however, financial results were adversely influenced by a negative earnings contribution from WEEV Beteiligungs GmbH which resulted from an impairment loss to the Verbund AG shares held by this company. The impairment loss was required to reflect the lasting decline in the share price below the recorded cost. In total, the result before income tax in this segment amounted to EUR 66.1m (previous year: EUR 101.1m).

Outlook

Results in this segment are influenced primarily by the earnings contributions from RAG, Energie Burgenland and Verbund AG. In view of the ongoing low oil and natural gas prices, which in addition to the storage business are an important factor for the development of earnings at RAG, and the earnings outlook issued by Verbund AG, segment results can be expected to remain stable or decline slightly in 2016/17.

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