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Notes to the consolidated statement of financial position - Assets

Non-current assets

The net value represents the residual book value, which equals the acquisition or production cost less accumulated depreciation or amortisation.

Currency translation differences arise from the translation of foreign companies’ assets using different exchange rates at the beginning and end of the 2015/16 financial year.

36. Intangible assets

Rights include electricity procurement rights, transportation rights for natural gas pipelines and other rights (primarily software licenses). In the past other intangible assets primarily included the customer bases of the Bulgarian and Macedonian electricity supply companies.

The impairment testing of goodwill in accordance with IAS 36 led to the recognition of impairment losses totalling EUR 0.5m in the Energy Trade and Supply Segment during the reporting year. In 2011/12 EVN purchased all of the shares in Fernwärmegenossenschaft (FWG) Hollabrunn. The initial consolidation of this company included the capitalisation of EUR 2.8m in goodwill and the allocation of this goodwill to the CGU Hollabrunn and was written down to EUR 0.5m in the financial year 2014/15. This cash-generating unit comprises the Hollabrunn district heating plant and the related district heating network in Hollabrunn. Another impairment loss of EUR 0.7m was recognised in 2015/16 of which EUR 0.5m was allocated to goodwill and EUR 0.2m to property, plant and equipment. The recoverable amount was determined on the basis of fair value less costs of disposal (level 3 according to IFRS 13) and equalled EUR 3.1m. An after-tax WACC of 5.53% was used as discount rate. The present value model underlying the valuation included a detailed planning period of four years and a time-limited annuity that was based on the underlying useful life. The estimated heating revenues are based on linear price trends and continuous sales volumes. The price increases for annual expenses were estimated at 2.0%.

In the financial year 2015/16, an impairment of the procurement rights from the Donaukraftwerk Freudenau in the amount of EUR 4.5m became necessary in the Generation Segment due to the significant deterioration of the long-term development of energy prices. EVN holds energy procurement rights of 12.5% at the Donaukraftwerk Freudenau for the operating period of the power plant. The recoverable amount was determined on the basis of fair value less costs of disposal (level 3 according to IFRS 13) and equalled EUR 41.2m. An after-tax WACC of 5.51% was used as discount rate. The present value model underlying the valuation includes a detailed planning period of four years, followed by a general planning phase until 2040 and a perpetual annuity with a growth rate of 0.0%. The price increases for annual expenses were estimated at 2.0%.

Other impairments of EUR 0.4m concerned in particular access to the power supply system as well as other intangible assets in connection with wind farms.

In 2015/16, a total of EUR 1.6m (previous year: EUR 1.4m) was invested in research and development; EUR 0.2m thereof were capitalised (previous year: EUR 0.0m).

36. Reconciliation of intangible assets    
2015/16 financial year EURmGoodwillRightsOther intangible
assets
Total
Gross value 30.09.2015216.7358.098.4673.1
Currency translation differences0.0*)0.0*)
Changes in the scope of consolidation0.0*)0.0*)
Additions20.31.221.5
Disposals–6.0–0.1–6.1
Transfers0.40.4
Gross value 30.09.2016216.7372.899.6689.1
 
Accumulated amortisation 30.09.2015–160.4–208.7–83.7–452.9
Currency translation differences–0.0*)–0.0*)
Changes in the scope of consolidation0.0*)0.0*)
Scheduled amortisation–13.0–3.1–16.1
Impairment losses–0.5–4.8–0.1–5.4
Additions0.0*)0.0*)0.0*)
Disposals6.00.0*)6.0
Accumulated amortisation 30.09.2016–160.9–220.1–86.9–467.9
Net value 30.09.201556.3149.314.7220.2
Net value 30.09.201655.8152.712.7221.2
2014/15 financial year EURmGoodwillRightsOther intangible
assets
Total
Gross value 30.09.2014216.7336.795.3648.7
Currency translation differences0.0*)0.0*)0.0*)
Changes in the scope of consolidation–0.1–0.1
Additions9.33.813.1
Disposals–16.1–0.3–16.3
Transfers28.2–0.427.8
Gross value 30.09.2015216.7358.098.4673.1
 
Accumulated amortisation 30.09.2014–158.1–213.9–80.2–452.2
Currency translation differences0.0*)0.0*)
Changes in the scope of consolidation0.10.1
Scheduled amortisation–10.6–3.5–14.0
Impairment losses–2.4–0.4–0.3–3.0
Disposals16.00.316.3
Accumulated amortisation 30.09.2015–160.4–208.7–83.7–452.9
Net value 30.09.201458.6122.815.1196.5
Net value 30.09.201556.3149.314.7220.2

37. Property, plant and equipment

Additions to property, plant and equipment included capitalised borrowing costs of EUR 2.3m (previous year: EUR 3.1m). The interest rate used for capitalisation ranged from 1.9% – 3.7% (previous year: 1.0% – 3.7%).

Land and buildings included land with a value of EUR 62.9m (previous year: EUR 60.7m). As of the balance sheet date, EVN held a mortgage with a maximum value of EUR 1.8m as in the previous year.

The impairment testing of assets in accordance with IAS 36 led to the recognition of the following impairment losses in 2015/16:

An impairment loss of EUR 32.6m was recognised to Steag-EVN Walsum power plant, which is included in the consolidated financial statements as a joint operation based on the proportional share owned. This impairment loss was based on the considerably less favourable estimates for the long-term development of electricity prices. The recoverable amount was determined on the basis of the fair value less costs of disposal (level 3 under IFRS 13) and equalled EUR 282.9m. An after-tax WACC of 5.31% was used as discount rate. The present value model underlying the valuation includes a detailed planning period of four years, followed by a general planning phase until 2040 as well as a continuation phase continuing the last planning year of the general planning phase until 2043. The estimated energy revenue during the detailed planning period is based on the price-forward curve for futures quotations on the European Energy Exchange AG, Leipzig, and in the general planning phase on a price structure that reflects the forecasts by two well-known market research institutes and information service providers in the energy sector. Current estimates for the outcome of the pending legal proceedings were also included in the valuation (see note 24. Accounting estimates and forward-looking statements). The price increases for annual expenses in the general planning phase were estimated at 2.0%.

In case of an increase (reduction) of the WACC by 0.5% in relation to the power plant Steag-EVN Walsum, included proportionally as a joint operation, in the financial year 2015/16, ceteris paribus, would have resulted in impairment losses of EUR 44.0m (impairment losses of EUR 20.3m). An increase (reduction) of the underlying electricity price assumptions by 5% would, ceteris paribus, have led to a recovery in value of EUR 9.9m (impairment losses of EUR 76.3m).

In Bulgaria, due to the continuously negative regulatory changes in the heating sector as well as due to the considerably reduced expectations for the long-term development of electricity prices, impairment losses in the amount of EUR 31.3m had to be recognised to the co-generation plant at TEZ Plovdiv. The recoverable amount was determined on the basis of fair value less costs of disposal (level 3 under IFRS 13) and amounted to EUR 52.8m. An after-tax WACC of 7.61% was used as discount rate. The present value model underlying the valuation covers a detailed planning period of four years, a general planning phase until 2026 and a perpetual annuity with a growth rate of 2.0%. The price increases for annual expenditures were estimated at 1.1% – 2.5%.

Furthermore, due to the considerably less favourable estimates for the long-term development of electricity prices impairment losses of EUR 2.3m were recognised to EVN’s windpark in Kavarna. The recoverable amount was determined on the basis of fair value less costs of disposal (level 3 under IFRS 13) and amounted to EUR 10.7m. An after-tax WACC of 7.66% was used as discount rate during the subsi- dised feed-in tariff phase and 8.21% for the free market phase. The present value model underlying the valuation covers a detailed planning period of four years and a general planning phase until the end of useful life. After the end of the expected subsidy period in the year 2019, the expected energy revenues are based on a price structure that reflects the forecasts by two well-known market research institutes and information service providers in the energy sector. The price increases for annual expenditures were assumed to be between 1.0% and 2.5%.

Further impairment testing on the grounds of less favourable estimates for the long-term development of electricity prices led to impairment losses in the amount of EUR 6.7m for small hydroelectric stations and windparks of EVN Naturkraft. The recoverable amounts were determined on the basis of fair value less costs of disposal (level 3 under IFRS 13) and amounted to a total of EUR 35.8m. An after-tax WACC of 5.51% was used as discount rate.

Other impairment losses covered EUR 2.1m for other thermal generation equipment.

>Enlarge table
37. Reconciliation of property, plant and equipment
2015/16 financial year EURmLand and
buildings
LinesTechnical
equipment
MetersOther plant,
tools and
equipment
Prepayments
and
equipment
under
construction
Total
Gross value 30.09.2015790.13,808.82,972.2224.9200.6167.28,164.0
Currency translation differences0.41.03.20.10.10.25.0
Changes in the scope of consolidation2.26.12.40.0*)10.7
Additions8.1103.263.621.713.799.8310.1
Disposals–10.2–9.4–52.1–8.4–43.1–0.1–123.2
Transfers19.249.825.40.13.1–96.51.0
Gross value 30.09.2016809.83,959.53,014.7238.5174.4170.78,367.6
 
Accumulated amortisation 30.09.2015–433.7–2,037.8–1,865.3–142.4–161.0–7.4–4,647.7
Currency translation differences–0.2–0.5–2.3–0.0*)–0.1–3.1
Changes in the scope of consolidation
Scheduled depreciation–20.9–102.7–97.4–14.6–14.5–250.1
Impairment losses–4.2–14.3–58.1–0.0*)–0.0*)–76.6
Revaluation1.81.50.74.1
Disposals9.49.248.78.342.7118.3
Transfers0.2–0.30.30.0*)–0.20.0*)
Accumulated amortisation 30.09.2016–447.7–2,144.8–1,973.4–148.7–133.1–7.4–4,855.0
Net value 30.09.2015356.41,771.01,106.982.539.6159.93,516.3
Net value 30.09.2016362.11,814.81,041.389.841.3163.33,512.5
Reconciliation of property, plant and equipment
2014/15 financial year EURmLand and
buildings
LinesTechnical
equipment
MetersOther plant,
tools and
equipment
Prepayments
and
equipment
under
construction
Total
Gross value 30.09.2014762.13,695.92,817.8216.1222.4239.97,954.2
Currency translation differences–0.1–0.2–24.2–0.0*)–0.1–6.9–31.6
Changes in the scope of consolidation–0.2–0.2–0.3–0.7
Additions13.194.983.817.512.293.2314.8
Disposals–1.5–8.1–6.4–8.4–19.2–0.9–44.6
Transfers16.726.3101.5–0.2–14.4–158.1–28.2
Gross value 30.09.2015790.13,808.82,972.2224.9200.6167.28,164.0
 
Accumulated amortisation 30.09.2014–402.0–1,962.1–1,694.5–138.3–178.2–36.9–4,412.0
Currency translation differences0.0*)0.112.30.0*)0.16.719.2
Changes in the scope of consolidation0.20.20.20.6
Scheduled depreciation–20.0–100.8–98.3–12.6–14.5–246.2
Impairment losses–12.3–1.5–40.1–0.2–0.0*)–54.1
Revaluation0.31.30.82.4
Disposals1.18.15.58.219.042.0
Transfers–1.217.2–51.20.312.622.90.5
Accumulated amortisation 30.09.2015–433.7–2,037.8–1,865.3–142.4–161.0–7.4–4,647.7
Net value 30.09.2014360.11,733.81,123.377.844.2203.03,542.2
Net value 30.09.2015356.41,771.01,106.982.539.6159.93,516.3

At the CGUs attributable to EVN Wärme “Eggenburg“, “Dürnrohr Umgebung“, “Mistelbach“, “Waidhofen/Thaya“, “Wiener Neustadt“ and “Zwettl“, a value recovery of EUR 2.6m was recorded. The recoverable amount was determined for the CGUs “Eggenburg“ and “Zwettl“ on the basis of the value in use, and for the remaining CGUs on the basis of the fair value less costs of disposal (level 3 under IFRS 13), and amounted to EUR 23.3m. An after-tax WACC of 5.53% was used for the discount rate, which corresponds to an iteratively derived WACC before taxes in the amount of 8.84% for the CGU „Eggenburg“ and 6.16% for the CGU „Zwettl“, respectively.

Other revaluations relate to EUR 0.1m for telecom networks of Kabelplus, EUR 1.1m for windparks and EUR 0.3m for a small hydroelectric power station.

In 2014/15, impairment losses of EUR 1.1m were recorded at EVN Naturkraft and EUR 27.6m at the power plant Steag-EVN Walsum, which is included in the consolidated financial statements as a joint operation based on the proportional share owned. This impairment loss was based on the less favourable estimates for the long-term development of electricity prices and the higher specific heat consumption, and therefore lower effectiveness, of the plant at the start of commercial operations. Furthermore, due to unfavourable regulatory changes for the production of electricity in Bulgaria, impairments of EUR 4.4m for EVN’s windpark in Kavarna were reported. Furthermore, due to the closure by Verbund of a power plant unit at the joint venture power station Dürnrohr, impairments of EUR 17.0m were necessary.

Prepayments and equipment under construction included acquisition costs of EUR 162.9m (previous year: EUR 158.3m) relating to equipment under construction as of the balance sheet date.

For leased and rented equipment, the present value of payment obligations for the use of heating networks and heat generation plants is reported on the consolidated statement of financial position. The net value of these assets totalled EUR 9.8m as of the balance sheet date (previous year: EUR 10.7m). The related lease and rental liabilities were recognised under other non-current liabilities.

The net value of property, plant and equipment and intangible assets pledged as collateral had a carrying amount of EUR 40.0m (previous year: EUR 44.7m).

38. Investments in equity accounted investees

The companies included in the consolidated financial statements at equity are listed in the notes under EVN’s investments. Note 66. 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 AG by more than three months. There were no listed market prices for the investments in equity accounted investees.

In 2015/16, an impairment loss of EUR 27.6m was recognised to Verbund Innkraftwerke GmbH to reflect less favourable estimates for the long-term development of electricity prices. The recoverable amount of EVN’s participation interest in Verbund Innkraftwerke GmbH was determined on the basis of the fair value less costs of disposal (level 3 under IFRS 13) and equalled EUR 75.9m. The after-tax WACC equalled 5.01%. The present value model underlying the valuation included a detailed planning period of four years followed by a general planning phase up to 2040 and a perpetual annuity with a growth rate of 0.0%. Less favourable estimates for the long-term development of electricity prices led to the recognition of impairment losses totalling EUR 26.8m already in the previous year (also see note 31. Share of results from equity accounted investees with operational nature).

For the Verbund Innkraftwerke GmbH, which is included at equity, an increase (reduction) of the WACC by 0.5% would have resulted, ceteris paribus, in impairment losses of EUR 40.8m in the financial year 2015/16 (impairment losses of EUR 11.2m). An increase (reduction) of the underlying electricity price by 5% would have led, ceteris paribus, to impairment losses of EUR 18.1m in the financial year 2015/16 (impairment losses of EUR 37.1m).

In the financial year 2015/16, impairment losses of EUR 8.2m in relation to the Shkodra Region Beteiligungsholding GmbH were recognised to the hydroelectric power plant Ashta. A capital increase carried out in October 2015 gave rise to impairment tests for the values of the investment and led to impairment losses of EUR 4.1m. On 30 September, due to a significantly deteriorated forecast for the long-term development of electricity prices, an impairment of EUR 4.1m was necessary. The recoverable amount for the EVN share in Shkodra Region Beteiligungsholding GmbH was determined on the basis of the fair value less costs of disposal (level 3 under IFRS 13) and amounted to EUR –14.9m. The after-tax WACC equalled 12.48%. The present value model underlying the valuation covers a planning period until 2027 for the regulated phase, a planning period until 2040 for the free market phase and subsequently a time-limited annuity until 2043. Subsequently, the power plant will become the property of Albania (also see note 31. Share of results from equity accounted investees with operational nature).

During the financial year the shares in Verbund AG held by WEEV fell significantly under the acquisition costs over a longer period of time. The adjustment to changed market values were offset against the valuation reserves from the time of the last devaluation as of 30 June 2013 after taking into account the deduction of deferred taxes under IAS 39. In case of a significant reduction of the share price over a longer period of time, the provisions of IFRS require the recognition of an impairment charge through profit or loss, which resulted in impairment losses to the shares in WEEV Beteiligungs GmbH in the amount of EUR 9.9m (see note 48. Valuation reserves).

The shares in ZOV were assigned to the financing banks as collateral for loans (previous year: EUR 87.1m). EVN’s proportional share of equity in this company totalled EUR 95.5m as of 30 September 2016.

38. Reconciliation of investments in equity accounted investees
2015/16 financial year
EURm
Gross value 30.09.2015918.6
Additions24.4
Disposals–8.2
Gross value 30.09.2016934.7
 
Accumulated amortisation 30.09.2015–20.5
Currency translation differences1.5
Disposals8.2
Impairment losses–45.7
Proportional share of results130.4
Dividends–117.6
Changes recognised in other comprehensive income34.7
Accumulated amortisation 30.09.2016–8.9
Net value 30.09.2015898.1
Net value 30.09.2016925.8
  
2014/15 financial year
EURm
Gross value 30.09.2014918.4
Additions0.1
Gross value 30.09.2015918.6
 
Accumulated amortisation 30.09.2014–29.3
Currency translation differences0.8
Impairment losses–26.8
Proportional share of results168.3
Dividends–106.7
Changes recognised in other comprehensive income–26.7
Accumulated amortisation 30.09.2015–20.5
Net value 30.09.2014889.1
Net value 30.09.2015898.1

39. Other investments

The other investments include 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 other investments include shares in listed companies with a market value of EUR 595.7m (previous year: EUR 476.1m), of which EUR 7.4m (previous year: EUR 30.9m) are used as collateral. The other investments included in this position amount to EUR 16.3m (previous year: EUR 23.5m) and are carried at amortised cost less impairment losses. They represent shares in companies which are not traded on an active market, i.e. which are not freely tradable. The changes in the value of other investments that were recognised under other comprehensive income totalled EUR 119.5m (previous year: EUR –163.5m) and represented adjustments to reflect amended market and stock exchange prices.

EVN AG and Wiener Stadtwerke Holding AG (WSTW) 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 were therefore accounted for by applying IAS 39.

>Enlarge table
39. Reconciliation of other investments
2015/16 financial year EURmInvestments
in affiliates
Miscellaneous
investments
Total other
investments
Gross value 30.09.201515.4403.3418.7
Additions0.21.21.4
Disposals–3.5–0.9–4.4
Transfer to financial assets available for sale–3.8–3.8
Gross value 30.09.20168.3403.5411.8
 
Accumulated amortisation 30.09.2015–6.687.681.0
Impairment losses–2.4–0.4–2.8
Disposals2.52.5
Changes recognised in other comprehensive income119.5119.5
Accumulated amortisation 30.09.2016–6.6206.8200.1
Net value 30.09.20158.8490.9499.7
Net value 30.09.20161.7610.3612.0
    
2014/15 financial year EURmInvestments
in affiliates
Miscellaneous
investments
Total other
investments
Gross value 30.09.201414.4403.7418.2
Changes in the scope of consolidation–0.0*)–0.0*)
Additions1.01.0
Disposals–0.0*)–0.4–0.5
Gross value 30.09.201515.4403.3418.7
 
Accumulated amortisation 30.09.2014–4.2250.7246.5
Impairment losses–2.5–2.5
Disposals0.40.4
Changes recognised in other comprehensive income–163.5–163.5
Accumulated amortisation 30.09.2015–6.687.681.0
Net value 30.09.201410.3654.4664.7
Net value 30.09.20158.8490.9499.7

40. Other non-current assets

Securities reported under other non-current assets consist mainly of shares in investment funds and serve as coverage for the provisions for pensions and obligations similar to pensions as required by Austrian tax law. The carrying amounts correspond to the fair value as of the balance sheet date. Additions and disposals resulted from the regrouping of assets during 2015/16.

Lease receivables and accrued lease transactions result from the project business within the context of PPP projects. Current manufacturing contracts resulted in receivables of EUR 54.4m (previous year: EUR 51.3m). The additions also include EUR 2.2m of capitalised borrowing costs (previous year: EUR 2.4m). The capitalisation rates ranged from 3.87% to 4.91% (previous year: 4.15% – 5.15%).

On 16 July 2012, the Bulgarian Energy and Water Regulatory Commission (EWRC) approved a change, retroactive to 1 July 2012, in the method used to calculate the compensation for the additional costs of renewable electricity and for electricity from highly efficient co-generation plants. The Bulgarian Energy Act requires utility companies to purchase electricity from producers of renewable energy. The large number of new supply contracts with renewable electricity producers led to higher sales volumes, which significantly increased electricity procurement prices for EVN in Bulgaria. Bulgarian legal regulations for renewable energy require the reimbursement of these additional costs by end customers. EVN has filed an appeal against the 16 July 2012 decision and initiated proceedings to require the continuation of direct compensation by the national electricity company Natsionalna Elektricheska Kompania EAD (NEK). The revised method to determine the compensation for the additional costs of renewable electricity and for electricity from highly efficient co-generation plants was amended as of 1 August 2013, and NEK was required to carry the additional costs for electricity from renewable energy and for electricity from highly efficient co-generation plants. EVN incurred costs totalling EUR 127.1m from 1 July 2012 to 31 July 2013, which require interim financing. A tariff decision on 1 July 2014 confirmed the amount and reasons for the additional costs and clarified that they must be refunded directly by NEK. By decision of 15 September 2016, the court of arbitration of the Bulgarian Chamber of Industry and Trade acknowledged the validity of the set-off of NEK receivables by EVN Bulgaria EC. On this basis, the part of the claims covered by the proceedings were set off vis-à-vis NEK, reducing the amount of gross receivables to EUR 90.2m (previous year: EUR 127.1m).

As of 30 September 2016, the remaining net receivables were EUR 57.9m (previous year: EUR 94.4m). They are now entirely shown under other non-current assets (previous year: EUR 51.9m under other non-current assets and EUR 42.5m under current receivables; see note 42. Trade and other receivables).

The basis for the assessment of the receivables are essentially the setoffs against NEK and compensations of invoice amounts. The receivables are value-adjusted by EUR 32.4m (previous year: EUR 32.7m). The expected future performance is dependent on the actions and decisions of the Bulgarian regulatory authority, and the valuation of this receivable is therefore connected with uncertainty. Consequently, there is a risk of a significant adjustment in the coming financial year.

>Enlarge table
40. Reconciliation of other non-current assets EURm 
Other financial assets 
SecuritiesLoans
receivable
Lease
receivables and
accrued lease
transactions
Receivables
arising from
derivative
transactions
Remaining
other
non-current
assets
Primary
energy
reserves
Total
Gross value 30.09.201574.334.0319.55.786.515.1535.2
Additions10.51.83.10.0*)15.4
Disposals–2.9–1.2–37.1–0.0*)–41.1
Changes in market value2.116.818.8
Transfers–3.8–26.941.310.6
Gross value 30.09.201684.030.9295.722.590.915.1539.0
 
Accumulated  amortisation  30.09.2015–1.0–1.0–191.4–32.7–0.6–226.8
Disposals1.00.0*)1.0
Impairment losses1)–0.0*)–0.0*)
Revaluation1)0.40.4
Accumulated  amortisation  30.09.2016–1.0–191.4–32.3–0.6–225.4
Net value 30.09.201573.333.1128.15.753.814.4308.4
Net value 30.09.201682.930.9104.322.558.614.4313.7

The reconciliation of the future minimum lease payments to their present value is as follows:

40. Terms to maturity of non-current lease receivables and accrued lease transactions EURm
Remaining term to maturity as of 30.09.2016Remaining term to maturity as of 30.09.2015
 Principal
components
Interest
components
TotalPrincipal
components
Interest
components
Total
< 5 years57.911.969.879.321.4100.8
> 5 years46.37.053.448.811.860.6
Total104.318.9123.2128.133.2161.4

The total of the principal components corresponds to the capitalised value of the lease receivables and accrued lease transactions. 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 2015/16 were reported as interest income on non-current assets.

Current assets

41. Inventories

Primary energy reserves consist mainly of hard coal supplies.

The CO2 emission certificates relate exclusively to certificates purchased to fulfil the requirements of the Austrian Emission Certificate Act, which have not yet been used. The corresponding obligation for any shortfall in the certificates is reported under current provisions (see note 59. Current provisions).

41. Inventories EURm30.09.201630.09.2015
Primary energy inventories49.938.6
CO2 emission certificates0.60.8
Raw materials, supplies, consumables and other inventories26.928.8
Customer orders not yet invoiced17.218.6
Aggregate components45.645.6
Total140.2132.5

The aggregate components originate from the former thermal waste utilisation plant no. 1 in Moscow and are expected to be used in future projects. In the financial year 2015/16, these assets were written down to the lower net realisable value through impairment losses of EUR 0.0m (previous year: EUR 11.0m).

The inventory risk resulting from low turnover and reduced market prices was taken into account through an additional increase of EUR 0.5m in the valuation adjustment (previous year: EUR 7.3m). This was contrasted by write-ups of EUR 0.2m (previous year: EUR 1.4m). The inventories are not subject to any restrictions on disposal or other encumbrances.

42. Trade and other receivables

Trade accounts receivable relate mainly to electricity, natural gas and heating customers.

The valuation adjustments to receivables are related primarily to South Eastern Europe. Since receivables in this region may only be written off for tax purposes after a court decision has been issued, collection generally takes a long time. This fact and the high number of pending court cases led to a continual increase in the valuation allowance, which rose by EUR 10.9m in 2015/16 (previous year: EUR 16.0m).

42. Allowances to receivables EURm30.09.201630.09.2015
Gross
receivables
AllowanceNet receivablesGross
receivables
AllowanceNet
receivables
Austria46.36.939.456.14.451.7
Germany23.80.423.422.20.421.8
Bulgaria134.724.1110.6157.425.3132.1
Macedonia289.5220.269.3291.1210.680.5
Others10.410.411.611.6
Total504.7251.6253.0538.3240.7297.6
42. Maturity of receivables not-impaired EURm30.09.201630.09.2015
Not yet due126.1151.7
Past due 1– 90 days58.180.9
Past due 91–180 days32.023.1
Past due 181–360 days29.917.1
Past due > 360 days7.024.7
Net receivables253.0297.6

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.

As in the previous year, receivables arising from derivative transactions consist mainly of the positive fair values of derivatives in the energy business.

Other receivables and assets include receivables of EUR 0.0m (previous year: EUR 42.5m) due from NEK, based on compensation for the additional costs of renewable electricity (also see note 40. Other non-current assets ). In addition, this position includes receivables from insurances, current loans and prepayments made.

The carrying amount of trade and other receivables pledged as collateral for EVN’s own liabilities amounted to EUR 0.5m (previous year: EUR 0.5m).

42. Trade and other receivables EURm30.09.201630.09.2015
Financial assets
Trade accounts receivable253.0297.6
Receivables from investments in equity accounted investees15.445.8
Receivables from non-consolidated subsidiaries5.10.8
Receivables from employees9.31.5
Receivables arising from derivative transactions9.17.3
Lease receivables34.746.4
Other receivables and assets54.180.5
380.7479.8
Other receivables
Taxes and levies receivable33.423.4
33.423.4
Total414.1503.2

43. Securities

The structure of the securities portfolio as of the balance sheet date is as follows:

43. Composition of securities EURm30.09.201630.09.2015
Funds75.481.2
thereof cash funds74.780.4
thereof other fund products0.70.8
Shares0.0*)0.0*)
Total75.481.3

There were no gains on the sale of securities during the reporting year (previous year: EUR 0.0m). However, an increase in value of EUR 0.1m (previous year: EUR 0.1m) was recorded without recognition through profit or loss to reflect an improvement in the market prices.

44. Non-current assets held for sale

Assets held for sale in the financial year 2015/16 in the amount of EUR 3.8m are related to the EVN-Pensionskasse Aktiengesellschaft (“EVN-Pensionskasse“), Maria Enzersdorf. EVN-Pensionskasse is currently not included in the consolidated financial statements of EVN AG due to immateriality; the investment is recognised at cost less any impairments.

As a company pension fund within the scope of a defined contribution pension plan, the EVN-Pensionskasse offers old age, invalidity and survivors pension exclusively to eligible staff members of the EVN Group. To this end, EVN-Pensionskasse has entered into pension fund contracts with EVN AG, Netz Niederösterreich GmbH, EVN Wärme GmbH, EVN Wasser GmbH, kabelplus GmbH, EVN Umweltholding und Betriebs GmbH, EVN Geoinfo GmbH as well as EVN Business Service GmbH.

The rapidly changing environment of the financial markets as well as the increasing regulatory requirements for pension funds have led to a consolidation of both company pension funds as well as inter-company pension funds in Austria. In accordance with the updated Group strategy 2020, the focus is placed on the consolidation of the EVN Group, combined with selective growth by strengthening the core business. The Executive Board of EVN AG has thus decided to outsource the EVN-Pensionskasse. As the most suitable option for the outsourcing, a merger into an inter-company pension fund with a cash compensation in return for a waiver of the issue of shares is currently under consideration. The closing of the transaction is planned for 30 June 2017 at the latest, once regulatory approval has been granted.

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