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62. Consolidated statement of cash flows

The consolidated statement of cash flows shows the changes in cash and cash equivalents during the reporting year as a result of cash inflows and outflows. The consolidated statement of cash flows is presented in accordance with the indirect method. Non-cash expenses were added to and non-cash income was subtracted from profit before income tax.

62. Cash and cash equivalents EURm30.09.201630.09.2015
Cash237.2255.1
thereof cash on hand0.50.6
thereof cash at banks236.7254.5
Bank overdrafts–13.7–10.2
Total223.5244.9

Of the total deposits with financial institutions, EUR 2.5m (previous year: EUR 5.8m) represent pledges.

63. Risk management

Interest rate risk
EVN defines interest rate risk as the risk that fluctuations in the fair value or future cash flows of a financial instrument due to changes in the market interest rate could adversely affect interest income and expense as well as equity. This risk is minimised through the regular monitoring of interest rate risk and compliance with limits as well as hedging strategies that include the use of derivative financial instruments (also see note 9. Financial instruments).

EVN monitors interest rate risk through sensitivity analyses, among others with a daily value-at-risk (VaR) calculation. This procedure calculates the VaR with a confidence level of 99.0% for one day according to the variance-covariance method (delta-gamma approach). The interest VaR, including the hedging instruments used by EVN, equalled EUR 6.6m as of 30 September 2016 (previous year: EUR 8.3m). The reduction of volatility of interest rates in the course of the financial year is also reflected in a reduction of the interest VaR in comparison to the previous balance sheet date.

Foreign exchange risk
For EVN, the risk to profit or loss arising from fluctuations in foreign exchange rates arises from transactions carried out in currencies other than the euro. EVN is exposed to foreign exchange risk on receivables, liabilities, and cash and cash equivalents that are not held in the Group’s functional currency (BGN, HRK, JPY, MKD, PLN, RUB). The most significant driver of foreign exchange risk for EVN is a bond issued in Japanese yen (JPY). Foreign exchange risk is managed by way of the central compilation, analysis and management of risk positions, and by hedging the bond denominated in foreign currencies through cross currency swaps (see notes 9. Financial instruments and 51. Non-current loans and borrowings).

The foreign exchange VaR, based on the major foreign currency risk drivers in the financial area, remains immaterial and amounted to TEUR 9.2 (previous year: TEUR 3.7) after the inclusion of hedging instruments.

Other market risks
EVN defines other market risks as the risk of price changes resulting from market fluctuations in primary energy, CO2 emission certificate, electricity and securities.

In EVN’s energy trading activities, energy trading contracts are entered into for the purpose of managing price risk. Price risks result from the procurement and sale of electricity, natural gas, hard coal, oil and CO2 emission certificates.

For price hedging purposes in the energy sector, EVN uses both financial derivatives, which are invariably converted to cash, as well as commodity derivatives, which are generally based on physical delivery.

Commodity derivatives are differentiated by contracts subject to a possible further optimisation and contracts under the expected purchase, sale or usage requirements for the supply of customers, EVN’s facilities or the marketing of energy produced in EVN facilities (own use). The following chart shows the outstanding contracts from the optimisation and expected usage requirements as of the balance sheet date.

63. Price hedging in the energy business EURm
2015/162014/15
 Nominal volumes  Fair values  Nominal volumesFair values
PurchasesDisposalsPositiveNegativeNetPurchasesDisposalsPositiveNegativeNet
Swaps54.6–15.48.3–3.15.262.5–6.81.0–12.7–11.7
Futures10.4–18.80.4–3.7–3.310.6–26.74.34.3
Forwards45.1–154.69.5–14.8–5.348.0–146.018.3–1.716.6

The price risk for securities results from fluctuations on the capital markets. The most significant securities position held by EVN is its investment in Verbund AG. The price risk VaR for the Verbund AG shares held by EVN as of the balance sheet date was EUR 27.0m (previous year: EUR 19.0m), whereby the price would be influenced by the sale of a large block of Verbund shares by EVN. The year-onyear decline in the VaR resulted from the position’s lower share price/market value. The year-on-year increase in the VaR resulted essentially from the position’s higher share price/market value.

Liquidity risk
Liquidity risk represents the risk of not being able to raise the required financial resources to settle liabilities on their due date as well as the inability to raise the necessary liquidity at the expected terms and conditions. EVN minimises this risk by means of short-term and medium-term financial and liquidity planning. In concluding financing agreements, special attention is paid to managing the terms to maturity in order to achieve a balanced maturity profile and thus avoid the bundling of repayment dates. The EVN Group uses cash pooling to equalise liquidity balances.

As of the balance sheet date, the liquidity reserve consisted of liquid assets and short-term securities in the amount of EUR 298.9m (previous year: EUR 326.2m). Moreover, EVN had EUR 400.0m of contractually agreed and unused syndicated lines of credit (previous year: unused lines of credit totalling EUR 400.0m) and EUR 122.0m of contractually agreed and unused bilateral lines of credit (previous year: EUR 175.0m) as of the balance sheet date. The liquidity risk was therefore extremely low. The gearing ratio equalled 40.5% as of the balance sheet date (previous year: 47.5%) and underscores EVN’s sound capital structure.

63. Expected occurrence of cash flows of loans and borrowings
and other liabilities
2015/16 financial year TotalContractually stipulated payment flows
EURmCarrying amountpayment flows< 1 year 1-5 years > 5 years
Bonds700.1896.5180.5117.8598.1
Bank loans839.7995.392.9363.3539.2
Lease liabilities16.518.42.29.76.5
Liabilities arising from derivative transactions1)56.157.818.430.39.1
Total1,612.41,968.0294.1521.11,152.9
   
2014/15 financial year TotalContractually stipulated payment flows
EURmCarrying amountpayment flows< 1 year 1-5 years > 5 years
Bonds707.9930.858.7274.8597.3
Bank loans957.71,147.7101.4443.3603.0
Liabilities arising from derivative transactions1)66.475.88.841.525.5
Lease liabilities17.919.41.910.66.8
Total1,749.92,173.8170.8770.31,232.6
63. Expected occurrence of cash flows of cash flow hedges
2015/16 financial yearTotal   Contractually stipulated payment flows
EURmpayment flows< 1 year 1-5 years > 5 years
Cash flows of hedged items–221.4–19.1–76.7–125.6
Cash flows from hedging instruments–37.7–6.7–21.9–9.1
  
2014/15 financial yearTotal Contractually stipulated payment flows
EURmpayment flows< 1 year 1-5 years> 5 years
Cash flows of hedged items–243.9–19.1–78.0–146.7
Cash flows from hedging instruments–50.0–9.3–28.0–12.8

Credit risk
Credit and default risk represents the risk of a loss when business partners fail to meet their contractual obligations. This risk is inherent to all agreements with delayed payment terms or fulfilment at a later date. To limit default risk, the company evaluates the credit standing of its business partners. External ratings (including Standard & Poor’s, Moody’s, Fitch and KSV 1870) are used for this purpose, and the business volume is limited in accordance with the rating and the probability of default. Sufficient collateral is required before a transaction is entered into if the partner’s credit rating is inadequate.

EVN monitors credit risk and limits default risk for financial receivables in the treasury area (e.g. investments, financial and interest derivatives) and for derivatives and forward transactions which are concluded to hedge the risks connected with EVN’s energy business or are related to end customers and other debtors.

In order to reduce credit risk, hedging transactions are entered into only with well-known banks that have good credit ratings. EVN also ensures that funds are deposited at banks with the best possible credit standing based on international ratings.

The default risk for customers is monitored separately at EVN and supported primarily by ratings and values derived from experience. Credit risks are taken into account through individual and general bad debt allowances. Default risk is also minimised with efficient receivables management and the continuous monitoring of customer payment behaviour.

63. Impairment losses by class
EURm
30.09.201630.09.2015
Write-offs/value adjustments
Non-current assets
Other investments2.82.5
Loans receivable0.31.0
3.13.4
Current assets
Receivables20.737.2
Total23.840.6

The Group’s maximum default risk for the items reported on the consolidated statement of financial position as of 30 September 2016 and 30 September 2015 reflect the carrying amounts shown in notes 40. Other non-current assets, 42. Trade and other receivables and 43. Securities, excluding financial guarantees.

The maximum default risk for derivative financial instruments equals the positive fair value (see note 65. Reporting on financial instruments).

The maximum risk from financial guarantees is described in note 67. Other obligations and risks.

64. Capital management

EVN’s goal in the area of capital management is to maintain a solid capital structure in order to use the resulting financial strength for value-creating investments and an attractive dividend policy. As of 30 September 2016, the equity ratio equalled 42.3% (previous year: 39.8%). Gearing is measured as the ratio of net debt to equity, whereby net debt is calculated as current and non-current financial liabilities less cash and cash equivalents, current and non-current securities and loans receivable. As of 30 September 2016, gearing equalled 40.5% (previous year: 47.5%).

64. Capital management
EURm
30.09.201630.09.2015
Non-current loans and borrowings1,314.51,535.7
Current loans and borrowings1)225.4129.9
Cash and cash equivalents–223.5–244.9
Non-current and current securities–158.4–154.5
Non-current and current loans receivable–36.5–35.3
Net debt1,121.51,230.9
Equity2,770.72,590.1
Gearing (%)40.547.5

The EVN Group uses cash pooling to manage liquidity and optimise interest rates. EVN Finanzservice GmbH and each of the participating Group subsidiaries have concluded a corresponding contract that defines the modalities for cash pooling.

65. Reporting on financial instruments

Fair value generally reflects the listed price on the balance sheet date. If this price is not available, fair value is calculated in accordance with financial methods, e.g. by discounting the expected cash flows at the prevailing market interest rate. The input factors required for the calculations are explained below.

The fair value of shares in unlisted subsidiaries and other investments is based on discounted expected cash flows or comparable trans- actions. For financial instruments listed on an active market, the trading price as of the balance sheet date represents fair value. Most of the receivables, cash and cash equivalents, and current financial liabilities have short terms to maturity. Therefore, the carrying value of these instruments as of the balance sheet date approximately corresponds to fair value. The fair value of bonds is calculated as the present value of the discounted future cash flows based on prevailing market interest rates.

The following table shows the financial instruments carried at fair value and their classification in the fair value hierarchy according to IFRS 13.

Level 1 input factors are observable parameters such as quoted prices for identical assets or liabilities. These prices are used for valuation purposes without modification.

Level 2 input factors represent other observable parameters which must be adjusted to reflect the specific characteristics of the valuation object. Examples of the parameters used to measure the financial instruments classified under level 2 are forward price curves derived from market prices, exchange rates, interest structure curves and the counterparty credit risk.

Level 3 input factors are non-observable factors which reflect the assumptions that would be used by a market participant to determine an appropriate price.

There were no reclassifications between the various levels during the reporting period.

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65. Information on classes and categories of financial instruments
EURm
30.09.201630.09.2015
ClassesMeasurement
category
Fair value
hierarchy
(according to IFRS 13)
Carrying amountFair valueCarrying amountFair Value
Non-current assets
Other investments
Non-financial assets--6.613.8
InvestmentsAFS-9.89.8
Miscellaneous investmentsAFSLevel 1595.7595.7476.1476.1
612.0499.7
Other non-current assetsSecurities
SecuritiesCash and cash equivalentsLevel 182.982.973.373.3
Loans receivableCash on hand and cash at banksLevel 230.939.533.140.4
Lease receivables and accrued lease transactionLARLevel 2104.3118.0128.1146.1
Receivables arising from derivative transactions@FVTPLLevel 26.36.35.75.7
Receivables arising from derivative transactionsHedgingLevel 216.216.2
Remaining other non-current assetsLAR58.658.653.853.8
Non-financial assets (primary energy reserves)-14.414.4
313.7308.4
Current assets
Current receivables and other current assets
Trade and other receivablesLAR371.6371.6472.6472.6
Receivables arising from derivative transactions@FVTPLLevel 29.19.17.37.3
Non-financial assets-33.423.4
414.1503.2
SecuritiesAFSLevel 175.475.481.381.3
Cash and cash equivalents
Cash on hand and cash at banksLAR237.2237.2255.1255.1
237.2237.2255.1255.1
Non-current liabilities
Non-current loans and borrowings
BondsFLACLevel 2550.3683.7679.4805.3
Bank loansFLACLevel 2764.2838.5856.2916.7
1,314.51,535.7
Other non-current liabilities
LeasesFLACLevel 214.316.516.016.4
Accruals of financial transactionsFLAC1.51.52.02.0
Other liabilitiesFLAC11.211.28.98.9
Liabilities arising from derivative transactions@FVTPLLevel 28.48.44.24.2
Liabilities arising from derivative transactionsHedgingLevel 228.828.844.544.5
64.375.6
Current liabilities
Current loans and borrowingsFLAC239.1239.1140.1140.1
Trade payablesFLAC399.6399.6472.3472.3
Other current liabilities
Other financial liabilitiesFLAC306.4306.4327.7327.7
Liabilities arising from derivative transactionsFVTPLLevel 212.212.21.11.1
Liabilities arising from derivative transactionsHedgingLevel 26.66.616.616.6
Non-financial liabilities-128.3132.5
453.4477.9
thereof aggregated to measurement categories
Available for sale financial assetsAFS680.8567.2
Loans and receivablesLAR802.6942.6
Financial assets designated at fair value in
profit or loss
@FVTPL98.386.3
Financial liabilities at amortised costFLAC2,286.62,502.7
65. Net results by measurement categories
EURm
2015/162014/15
ClassesNet resultOf which
impairment losses
Net resultOf which
impairment losses
Available for sale financial assets (AFS)–2.8–2.8–8.4–2.5
Loans and receivables (LAR)–26.0–21.0–42.5–38.1
Financial assets at fair value through profit or loss (@FVTPL)–1.51.5
Financial liabilities at amortised cost (FLAC)–0.1
Total–30.3–23.8–49.5–40.6

Derivative financial instruments
Derivative financial instruments are used primarily to hedge the company’s liquidity, exchange rate, price and interest rate risks. The operative goal is to ensure the long-term continuity of the Group’s earnings. All derivative financial instruments are integrated in a risk management system as soon as the respective contracts are concluded. This allows for the preparation of a daily overview of all main risk indicators. A separate staff unit has been established to monitor risk controlling and continuously develop risk analyses based on the value-at-risk (VaR) method.

The nominal values represent the separate totals of the items classified as financial derivatives on the balance sheet date. These are reference values which do not provide a measure of the risk incurred by the company through the use of these financial instruments. In particular, potential risk factors include fluctuations in the underlying market parameters and the credit risk of the contracting parties. Derivative financial instruments are recognised at their fair value.

Derivative financial instruments comprise the following:

 30.09.201630.09.2015
65. Derivative financial instruNominal value1)Fair value2)Nominal value1)Fair value2)
Currency swaps
JPYm (over 5 years)3)12,000.016.212,000.0–3.8
Interest rate swaps
EURm (over 5 years)3)216.0–35.5234.5–48.4
Derivatives energy
Purchase/disposals (hard coal)3)0.00.020.0–5.2
Purchase/disposals (electricity, natural gas, hard coal, CO2)–72.2–5.3–39.74.5

Due to the effectiveness measurement carried out on the balance sheet date 30 September 2016, the hedging relationships in relation to black coal were terminated. The cumulative loss in the amount of EUR 0.5m will continue to be stated separately under equity until the transactions formerly hedged occur.

Positive fair values are recognised as receivables from derivative transactions under other non-current assets or other current assets, depending on their remaining term to maturity. Negative fair values are recognised as liabilities from derivative transactions under other non-current liabilities or other current liabilities, depending on their remaining term to maturity.

66. Disclosures of interests in other entities

An overview of the companies included in the consolidated financial statements is provided under EVN’s investments.

Information on the joint ventures and associates that were included in EVN’s consolidated financial statements at equity in 2015/16 is provided below.

The share of results from equity accounted investees with operational nature has been reported as part of the results from operating activities (EBIT).

The following overview shows the classification of the equity accounted investees based on operating and financial criteria:

66. Joint ventures that were included at equity in the consolidated
financial statements as of 30.09.2016 in accordance with IFRS 11
Operational
nature
Financial
nature
Company
AUL Abfallumladelogistik Austria GmbH
Bioenergie Steyr GmbH
Degremont WTE Wassertechnik Praha v.o.s.
e&i EDV Dienstleistungsgesellschaft m.b.H.
EnergieAllianz
EVN KG
EVN-WE Wind KG
Fernwärme St. Pölten GmbH
Fernwärme Steyr GmbH
RAG
Shkodra
sludge2energy GmbH
WEEV Beteiligungs GmbH
ZOV
 
66. Associates that were included at equity in the consolidated
financial statements as of 30.09.2016 in accordance with IAS 28
Operational
nature
Financial
nature
Company
Energie Burgenland AG
Verbund Innkraftwerke GmbH
ZOV UIP

The following table shows summarised financial information about each individually material joint venture included in the consolidated financial statements:

66. Financial information of material
joint ventures EURm
30.09.201630.09.2015
Joint ventureEVN KGRAGZOVEVN KGRAGZOV
Statement of financial position
Non-current assets14.9649.2253.512.1630.8257.0
Current assets181.991.847.1161.762.743.1
Non-current liabilities0.0*)418.379.91.7399.397.3
Current liabilities92.093.724.476.580.424.1
 
Reconciliation of the carrying amount of
the share of EVN in the joint venture
Net assets104.8229.0196.395.6213.8178.7
Share of EVN in net assets in per cent100.0 %100.00 %48.50 %100.00 %100.00 %48.50 %
Share of EVN in net assets104.8229.095.295.6213.886.7
+/– Revaluations–0.0*)172.70.30.0*)181.00.5
Carrying amount of the share of EVN in the
joint venture
104.8401.795.595.6394.887.1
2015/162014/15
Statement of operations
Revenue431.0411.516.5504.5417.617.8
Scheduled depreciation and amortisation–0.0*)–52.70.0*)–53.5
Interest income0.10.0*)0.20.10.10.5
Interest expense–0.0*)–5.1–7.80.0*)–5.8–9.0
Income tax–17.3–5.90.0*)–22.4–5.7
Result for the period55.950.623.563.865.423.0
Other comprehensive income17.3–0.41.0–9.8–11.51.2
Comprehensive income73.250.224.554.153.924.2
 
Dividends received by EVN64.035.05.053.835.03.5

The following table shows summarised financial information about each individually immaterial joint venture included in the consolidated financial statements:

66. Financial information of individually immaterial joint ventures
(EVN share) EURm
2015/162014/15
Carrying value of the joint ventures as of the balance sheet date71.239.5
Result for the period–1.08.5
Other comprehensive income16.8–7.7
Comprehensive income15.80.8

The following table shows summarised financial information about each individually material associate included in the consolidated financial statements:

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66. Financial information of
material associates EURm
30.09.201630.09.2015
AssociateVerbund
IKW
ZOV UIPEnergie
Burgenland
EconGasVerbund
IKW
ZOV UIPEnergie
Burgenland
Statement of financial position
Non-current assets1,256.20.3728.248.91,288.80.2765.5
Current assets27.54.1152.31,393.317.23.3143.6
Non-current liabilities83.9163.698.888.5170.4
Current liabilities11.41.7409.51,388.110.00.7425.4
 
Reconciliation of the carrying amount of the
share of EVN in the asscociate
Net assets1,188.42.7307.4–44.71,207.52.8313.3
Share of EVN in net assets in per cent13.00 %31.00 %36.08 %16.51 %13.00 %31.00 %36.08 %
Share of EVN in net assets154.50.8110.9–7.4157.00.9113.0
+/– Revaluations–78.264.67.4–51.361.3
Carrying amount of the share of EVN
in the associate
76.30.8175.5105.70.9174.4
2015/162013/14
Statement of operations
Revenue66.412.4305.71,630.377.410.7332.5
Result for the period–6.13.210.5–2.25.53.419.2
Other comprehensive income1.00.14.6
Comprehensive income–6.13.211.6–2.15.53.425.4
 
Dividends received by EVN2.01.09.33.91.08.3

The consolidated financial statements include no associates that are individually immaterial.

67. Other obligations and risks

The commitments entered into by EVN and the related risks are as follows:

67. Other obligations and risks EURm30.09.201630.09.2015
Guarantees in connection with energy transactions75.6105.3
Guarantees in connection with projects in the Environmental Services Segment59.843.4
Guarantees related to the construction and operation of
energy networks1.15.2
power plants109.8156.4
Order obligations for investments in intangible assets and property, plant and equipment64.068.7
Further obligations arising from guarantees or other contractual contingent liabilities0.30.5
Total310.6379.4
thereof in connection with equity accounted investees122.6150.4

Neither provisions nor liabilities were recognised for the above-mentioned items because claims to the fulfilment of obligations or the actual occurrence of specific risks were not expected at the time these consolidated financial statements were prepared. The above-mentioned obligations were contrasted by corresponding recourse claims of EUR 95.6m (previous year: EUR 95.6m).

Contingent liabilities related to guarantees for subsidiaries in connection with energy transactions are recognised on the basis of the guarantees issued by EAA at an amount equalling the risk exposure of EVN AG. This risk is measured by the changes between the stipulated price and the actual market price, whereby EVN is only exposed to procurement risks when market prices decline and to selling risks when market prices increase.

Accordingly, fluctuations in market prices may lead to a change in the risk exposure after the balance sheet date. The risk assessment resulted in a contingent liability of EUR 45.0m as of 30 September 2016. The nominal volume of the guarantees underlying this assessment was EUR 283.5m. As of 31 October 2016, the market price risk was EUR 37.8m based on an underlying nominal volume of EUR 283.5m.

Various legal proceedings and lawsuits related to operating activities are pending or claims may be filed against EVN in the future. The attendant risks were analysed in relation to their probability of occurrence. The evaluation of possible claims showed that the legal proceedings and lawsuits, individually and as a whole, would not have a material negative effect on EVN’s business, liquidity, profit or loss or financial position.

Additional obligations arising from guarantees and other contractual contingent liabilities consisted chiefly of outstanding capital contributions and loan commitments to affiliates as well as liabilities for affiliates’ loans.

68. Information on transactions with related parties

In accordance with IAS 24, transactions with related parties arise through direct or indirect control, significant influence or joint management. Related parties include close family members of the respective natural persons. Key management personnel and their close family members are also considered to be related parties.

EVN’s related parties include all companies in the scope of consolidation, other subsidiaries, joint ventures and associates that are not included in the consolidated financial statements, the main shareholders NÖ Landes-Beteiligungsholding GmbH, St. Pölten, and its subsidiary EnBW Trust e.V., Karlsruhe, Germany, as well as people who are responsible for the planning, management and supervision of the Group’s activities. In particular, related parties also include the members of the Executive Board and the Supervisory Board as well as their family members. A list of the Group companies can be found under EVN’s investments.

On 20 December 2013, EnBW Energie Baden-Württemberg AG, Karlsruhe, Germany, concluded a trust agreement with EnBW Trust within the framework of a so-called contractual trust arrangement model. This agreement led to the transfer by EnBW of its 32.5% investment in EVN AG in trust to EnBW Trust. As of 30 September 2016, EnBW Trust held an investment of 32.0% in EVN AG.

Transactions with related companies
Main shareholder

A group and tax settlement agreement was concluded with NÖ Landes-Beteiligungsholding GmbH, St. Pölten, in connection with the inclusion of EVN AG in a corporate tax group as defined in § 9 of the Austrian Corporate Tax Act. EVN AG has since added further subsidiaries to the tax group based on this agreement. This resulted in a current receivable of EUR 16.4m as of 30 September 2016 (previous year: current receivable of EUR 9.9m) due to NÖ Landes-Beteiligungsholding GmbH, St. Pölten.

Investments in equity accounted investees
Within the context of its ordinary business operations, EVN has concluded supply and service contracts with numerous companies included at equity in its consolidated financial statements. Long-term agreements were concluded with EAA (formerly e&t) for the sale and procurement of electricity and natural gas, and long-term procurement contracts were concluded with EconGas for natural gas. The investment in EconGas was sold during the financial year 2015/16 and is therefore not included in the figures for the financial year 2015/2016.

The value of services provided to investments in equity accounted investees is as follows:

68. Transactions with joint ventures included at equity EURm2015/162014/15
Revenue278.1276.1
Cost of services received–58.4–63.8
Trade accounts receivable15.444.4
Trade accounts payable23.651.4
Loans12.89.3
Non-current loans and borrowings9.69.6
Receivables from cash pooling
Liabilities from cash pooling111.1100.1
Interest income from loans0.60.6
Interest expense on non-current loans and borrowings0.10.1
Interest balance from cash pooling0.00.0*)
68. Transactions with associates included at equity EURm2015/162014/15
Umsätze
Aufwendungen für bezogene Leistungen–42.5–78.4
Revenue1.4
Cost of services received0.60.2

Transactions with related individuals
Executive Board and Supervisory Board

The payments to members of the Executive Board and the Supervisory Board consist primarily of salaries, severance payments, pensions and Supervisory Board remuneration.

The remuneration paid to the active members of the Executive Board in 2015/16 totalled TEUR 1,087.7 (including compensation in kind and contributions to pension funds; previous year: TEUR 987.9).

68. Remuneration of the active Executive Board TEUR2015/162014/15
Fixed remunerationVariable remunerationCompensation in kindFixed remunerationVariable remunerationCompensation in kind
Peter Layr386.5134.413.5380.591.311.3
Stefan Szyszkowitz360.4125.313.5354.885.211.3

Furthermore, an addition of TEUR 1,784.0 was made to the provision for pensions obligations on behalf of Peter Layr in 2015/16 (thereof TEUR 185.3 of interest expense, including TEUR 1,405.6 of actuarial gains/losses). In the previous year, the change amounted to TEUR –271,2 (thereof TEUR 192.1 of interest expense, including TEUR –668.7 of actuarial gains/losses). For Stefan Szyszkowitz, the pension fund contributions equalled TEUR 54.1 (previous year: TEUR 53.5) and TEUR 1,137.3 were added to the provision for pensions (thereof TEUR 75.1 of interest expense, including TEUR 928.2 of actuarial gains/losses). In 2014/15, the change to the provision for pensions amounted to TEUR –283.8 (thereof TEUR 82.4 of interest expense, including TEUR –522.2 of actuarial gains/losses). The addition to the provisions for severance payments equalled TEUR 22.6 for Peter Layr in 2015/16 (thereof TEUR 12.1 of interest expense, including TEUR –2.5 of actuarial gains/losses) and TEUR 21.4 in the previous year (thereof TEUR 11.6 of interest expense, including TEUR –3.0 of actuarial gains/losses). For Stefan Szyszkowitz, TEUR 7.6 were contributed to an external employee fund (previous year: TEUR 6.9).

The year-on-year change in the remuneration of the active members of the Executive Board is attributable primarily to the change in performance-based components and the annual wage and salary increases mandated by collective bargaining agreements. The members of the Executive Board are entitled to legally defined severance compensation at the end of their functions. They are also entitled to a contractually agreed pension on retirement, whereby the pension payments under the Austrian social security scheme and any payments from EVN Pensionskasse are credited against this amount.

The payments to former members of the Executive Board or their surviving dependents amounted to TEUR 1,181.5 in 2015/16 (previous year: TEUR 1,200.2).

Expenses for severance payments and pensions for active members of senior management totalled TEUR 3,697.4 in 2015/16 (thereof TEUR 192.4 of interest expense, including TEUR 3,083.7 of actuarial gains/losses) and TEUR –31.3 in the previous year (thereof TEUR 250.1 of interest expense, including TEUR –786.6 of actuarial gains/losses).

The above amounts include expenses recognised in accordance with national law, as required by the Austrian Corporate Governance Code. In accordance with IFRS, actuarial gains and losses are recorded under other comprehensive income without recognition in profit or loss in keeping with IAS 19.

The Supervisory Board remuneration totalled EUR 0.1m in 2015/16 (previous year: EUR 0.1m). The members of the Advisory Committee for Environmental and Social Responsibility received remuneration of EUR 0.1m during the reporting year (previous year: EUR 0.1m).

The basic principles underlying the remuneration system are presented in the remuneration report, which is part of the corporate governance report.

Transactions with other related companies
The disclosure requirements for the notes do not cover information on intragroup transactions. Therefore, business transactions between EVN and its subsidiaries are not reported. Business transactions with non-consolidated subsidiaries and companies not included at equity are generally not reported due to their immateriality.

Related parties can also be direct customers of a company within the EVN Group, whereby these business relationships reflect prevailing market rates and conditions and are immaterial in relation to the total income recorded by the EVN Group in 2015/16. The resulting items which were outstanding as of 30 September 2016 were reported under trade accounts receivable.

69. Significant events after the balance sheet date

On 5 October 2016, the Executeve Board approved the premature termination of the current share buyback programme. The authorisation resolution of the 87th Annual General Meeting of EVN AG remains intact and is still valid.

The Austrian E-Control-Commission has approved an increase in electricity and natural gas network tariffs in a draft proposal; both of these increases will take effect on 1 Jannuary 2017. This corresponds to the required high investment activities in the previous years, in particular for including renewable energy generation, as well as to the comparison of network sales volume to the respective reference period.

70. Information on management and staff

  
The corporate bodies of EVN AG are:

Executive Board
Peter Layr – Spokesman of the Executive Board
Stefan Szyszkowitz – Member of the Executive Board

Supervisory Board
Chairperson
Dr. Burkhard Hofer (until 21.01.2016)
Bettina Glatz-Kremsner (from 21.01.2016)

Vice-Chairman
Stefan Schenker (until 21.01.2016)
Norbert Griesmayr (from 21.01.2016)
Willi Stiowicek
 
Members
Norbert Griesmayr (until 21.01.2016)
Dieter Lutz
Bernhard Müller (until 21.01.2016)
Angela Stransky
Friedrich Zibuschka (until 21.01.2016)

Philipp Gruber (from 21.01.2016)
Thomas Kusterer
Hofrat Dr. Reinhard Meißl
Edwin Rambossek (until 21.01.2016)
Susanne Scharnhorst (from 21.01.2016)
 
Employee representatives
Franz Hemm
Paul Hofer
Otto Mayer (until 31.12.2015)

Manfred Weinrichter
Monika Fraißl
Friedrich Bußlehner (from 01.01.2016)

71. Approval of the 2015/16 consolidated financial statements for publication

These consolidated financial statements were prepared by the Executive Board as of the date indicated below. The individual finan- cial statements, which were also included in the consolidated financial statements after their adjustment to reflect International Financial Reporting Standards, and the consolidated financial statements of EVN AG will be submitted to the Supervisory Board on 12 December 2016 for examination, and the Supervisory Board will also be asked to approve the individual financial statements.

72. Auditing fees

EVN’s consolidated financial statements and annual financial statements for the 2015/16 financial year were audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna. Auditing and consulting fees amounted to EUR 2.1m for the reporting year (previous year: EUR 1.8m), whereby 43.6% are attributable to auditing and audit-related services, 48.1% to tax advising and 8.3% to other consulting services. All companies in the scope of consolidation were included.

Maria Enzersdorf, 17 November 2016

EVN AG
The Executive Board

Unterschrift Layr Unterschrift Szyszkowitz

Peter Layr
Spokesman of the Executive Board

Stefan Szyszkowitz
Member of the Executive Board

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