Strategic Investments and Other Business
The Strategic Investments and Other Business Segment basically covers the investments in Rohöl-Aufsuchungs AG (RAG), Burgenland Holding AG and Verbund AG. This segment also includes corporate functions as well as companies outside EVN’s core business which generally provide internal services.
In connection with the initial application of the new IFRS consolidation standards, the share of earnings from the investments in Rohöl-Aufsuchungs AG and Energie Burgenland is reported as the “results from equity accounted investees with operational nature” under EBIT. The earnings contributions from WEEV Beteiligungs GmbH and e&i EDV Dienstleistungs G.m.b.H. are reported under financial results, as in previous years.
Highlights 2013/14
- Lower earnings contribution from RAG
- Lower earnings contribution from Energie Burgenland
- Higher dividend from Verbund AG
| Key indicators – Strategic Investments and Other Business | EURm | 2013/14 | 2012/131) | Change nominal
in %
| |||||
|---|---|---|---|---|---|---|---|---|---|
| External revenue | 9.5 | 8.8 | 0.7 | 8.2 | |||||
| Internal revenue | 61.5 | 59.3 | 2.2 | 3.7 | |||||
| Total revenue | 71.0 | 68.0 | 2.9 | 4.3 | |||||
| Operating expenses | -77.5 | -75.7 | -1.8 | -2.4 | |||||
| Share of results from equity accounted investees with operational nature | 66.0 | 89.9 | -24.0 | -26.7 | |||||
| EBITDA | 59.4 | 82.2 | -22.9 | -27.8 | |||||
| Depreciation and amortisation including effects from impairment tests | -1.7 | -1.9 | 0.2 | 9.8 | |||||
| Results from operating activities (EBIT) | 57.6 | 80.3 | -22.7 | -28.2 | |||||
| Financial results2) | 61.8 | -1.2 | 63.0 | - | |||||
| Profit before income tax | 119.4 | 79.1 | 40.3 | 51.0 | |||||
| Total assets | 2,750.3 | 2,887.2 | -136,9 | -4.7 | |||||
| Total liabilities | 1,116.5 | 1,342.7 | -226,3 | -16.9 | |||||
| Investments3) | 2.5 | 3.5 | -1.0 | -29.8 | |||||
| 1) The figures for the prior year were adjusted retrospectively according to IAS 8 (see note 2. Reporting according to IFRS). 2) For details on the income from EVN’s investments. 3) In intangible assets and property, plant and equipment | |||||||||
Revenue, EBITDA and EBIT development
Revenue rose by EUR 2.9m, or 4.3%, to EUR 71.0m in 2013/14. In contrast, EBITDA fell by EUR 22.9m, or 27.8%, to EUR 59.4m. This decline resulted primarily from the absence of positive oneoff effects from RAG and the resulting lower contribution of EUR 58.0m to earnings in 2013/14 (previous year: EUR 80.1m). The earnings contribution from Energie Burgenland equalled EUR 7.6m, but was also below the previous year‘s contribution of EUR 9.7m. Together with a slight decline in depreciation and amortisation, this led to a reduction of EUR 22.7m, or 28.2%, in results from operating activities (EBIT) to EUR 57.6m.
Financial results and profit before tax
Financial results rose from EUR –1.2m in the previous year to EUR 61.8m in 2013/14. This improvement reflected the absence of negative one-off effects from the previous year, specifically the negative earnings contribution from WEEV Beteiligungs GmbH, as well as a higher dividend of EUR 40.1m from Verbund AG. These developments led, in total, to an increase of EUR 40.3m, or 51.0%, in profit before tax to EUR 119.4 m.
Outlook
The share of results from equity accounted investees with operational nature is determined by the investments in RAG and Energie Burgenland. Financial results are influenced significantly by the dividend from Verbund AG, and the announced reduction in this distribution by Verbund AG will be reflected in the segment’s results. Consequently, earnings in the Strategic Investments and Other Business Segment are expected to decline in 2014/15.
