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American Depositary Receipts (ADR)

Tradable certificates for non-American shares available in the US; facilitates access for non-American companies to US investors.

ARA/ARA region

The region surrounding Antwerp, Rotterdam and Amsterdam is Europe's most important reloading point for mineral oil. Trading takes place via short-term contracts. Prices are highly volatile, depending on supply and demand (also see Spot market/spot trading). The quotation of prices in Rotterdam is decisive for the oil price level in Europe.

At equity/ At equity consolidation

Accounting method for the inclusion of investments in companies which are not fully consolidated (associates). These investments are initially recognised at their acquisition cost, which is adjusted each year to reflect the change in the investor's share of profit or loss recorded by the associate. This annual share of profit or loss is reported on the investor's consolidated income statement.

Austrian Sustainability Reporting Award (ASRA)

Annual award presented by the Chamber of Fiduciaries and its cooperation partners for the best environmental and sustainability reports published by Austrian companies.


The recognised global unit of measurement for crude oil and petrochemical products; 1 barrel of crude oil = 158.987 litres.

Base load/peak load

Base load is the constant energy consumption throughout the entire day. In contrast, peak load represents a high demand for energy in the electricity distribution network for short periods of time.


A mixture comprised largely of methane and carbon dioxide which is created during the oxygen-free digestion of organic renewable raw materials, slurry or organic residues from the food-stuffs industry.


The total mass of organic material (dead life forms, organic metabolic products and residues); certain quantities of biomass can be used to generate electricity and heat in combined heat and power plants.

Book value per share

Carrying amount of share capital divided by the number of shares outstanding as of the balance sheet date.

BOOT model

(Build Own Operate Tranfer) See PPP model.


The most important crude oil for European consumption, produced in the North Sea.

Capital employed

Equity plus interest-bearing loans or assets minus non-interest-bearing liabilities.

Cash flow

Balance of the inflows and outflows of cash and cash equivalents. Serves as an indi-cator for the assessment of the financial strength of a company and its ability to make dividend payments, repay loans and finance investments internally.

Cash-generating unit (CGU)

The smallest identifiable group of assets that generates cash inflows that are largely independ-ent of the cash inflows from other assets or groups of assets. The present value of future cash flows can be used to value a CGU (also see impairment test).

Certified Emission Reduction (CER)

The CERs stem from projects in the Clean Development Mechanism (CDM). Countries or companies can purchase emission credits from emission reduction projects being undertaken in the emerging or developing countries that have not yet made any commitments to reduce emissions. These credits can then be used to meet the obligations under the European Emissions Trading Scheme. 1 CER = 1 tonne CO2

CO2 (carbon dioxide)

Chemical compound consisting of carbon and oxygen which is largely created by the combustion of fossil fuels.

CO2 emission certificate

CO2 emission certificates were introduced in the European Union as of 1 January 2005 as part of the drive to implement the Kyoto Accords and allow the emission of a certain amount of greenhous gas emissions. The cer-tificates are allocated within the framework of the "National Allot-ment Plan", depending on the level of a company's emissions.

CO2 emission certificate trading/ EU emission trading

As part of the EU's emission certificate trading system, the member states distribute CO2 emission rights to companies. Firms whose actual CO2 emissions exceed the volume of the allo-cated certificates must purchase additional emission rights.

Code of Conduct

Voluntary obligation to follow or avoid certain behavioural pat-terns and to ensure that no one achieves an advantage through the evasion of these patterns.

Combined cycle heat and power/co-generation

Simultaneous generation of electrical energy and heat in a singl e facility. Combined produc-tion allows the plant to reach a high level of efficiency and, in this way, optimally use the primary energy.

Consolidation range/ scope of consolidation

The group of companies included in the consolidated financial statements; the scope of consolidation is defined in accordance with IAS 27.

Corporate Governance Code

Behavioural code for companies which defines the principles of good management and control; this is not a set of legal regula-tions, but a guideline that invites voluntary compliance.

Coverage ratio

Ratio of the volume of electricity produced in EVN's own power generating facilities and the Group's total sales volume of electricity.

Degree of efficiency

The efficiency of a plant repre-sents the ratio of input to output (i.e. the quantity of electrical energy generated in relation to the primary energy employed).

Derivative financial instruments

Financial instruments which create rights and obligations derived from market developments, e.g. options, swaps and futures. These financial instruments can be used to minimise financial risks.

Directors-and-Officers (D & O)insurance

A liability insurance policy covering damage to assets which is arranged by a company to protect its corporate bodies and key employees.

Directors-and-Officers (D & O)insurance

A liability insurance policy covering damage to assets which is arranged by a company to protect its corporate bodies and key employees.

Dividend yield

Ratio of the distributed dividend to the share price.

Earnings before Interest and Taxes (EBIT)

Also referred to as operating earnings; an indicator of a com-pany's ability to generate earnings from its operating activities.

Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA)

Earnings before interest, taxes, depreciation and amortisation of property, plant and equipment and intangible assets; is used as a simple cash flow parameter.

Earnings per share

Net profit divided by the aver-age number of shares outstanding for the period.

Eco Management and Audit Scheme (EMAS)

European Union directive for environmental management systems.

Economic Value Added (EVA®)

Difference between the yield spread (ROCE less WACC) multiplied by average capital employed; benchmark for the shareholder value created in a company.

E-Control (ECG)/ Energie-Control GmbH

The regulatory authority established by lawmakers on the basis of the Energy Liberalisation Act to monitor the implementation of the liberalisation process for the Austrian electricity and gas markets, and to intervene in the marketplace if necessary.

Electric mobility

The use of electric-powered vehicles for passenger and com-mercial transportation.

Eligible end customer

End-customers authorised by the Energy Act to freely select their energy suppliers in a liberalised market.

Energy units

Energy (Wh) = output x time Kilowatt hour: 1 Watt hour (Wh) x 103 Megawatt hour MWH: 1 Wh x 106 Gigawatt hour GWh: 1 Wh x 109 Natural gas energy content: 1 Nm3 1 m3 natural gas = 11.07 kWh

Equity ratio

Equity as a per cent of total capital.


Independent consulting agency for environmentally and socially responsible investments that advises banks and brokers on the development of ethical savings and investment models.

European Energy Community

Energy community of the European Union whose purpose is the development of Europe's energy markets.

European Energy Exchange

(EEX) The largest energy marketplace in Continental Europe, headquartered in Leipzig.

Ex-dividend day

The day on which shares are traded without an entitlement to dividends. On this day the dividend is deducted from the price of the respective share.

Fair value

The price based on all relevant factors in an efficient market; forms the basis for transactions between willing and independent partners.

Forward market

In contrast to the spot market, the forward or futures market is characterised by a contractually stipulated time lag between the conclusion of a transaction and actual delivery. At the time a contract is concluded, the buyer is not required to have the neces-sary liquid funds, nor is the seller required to have the purchased goods. The price of the goods is determined at the time the contract is concluded.

FTSE4Good Index

An index that offers sustaina-bility-oriented investors an oppor-tunity to invest in companies that meet globally accepted standards for responsible actions in the interest of the environment and stakeholders.

Funds from Operations (FFO)

Net cash flow from operating activities minus interest expense.


Ratio of net debt to equity.

Global Reporting Initiative (GRI)

Initiative aimed at developing globally applicable guidelines for sustainability reporting to ensure the standardised presentation of companies from an economic, eco-logical and social point of view.

Heating degree

total parameter showing the temperature-related energy requirements for heating purposes.


An instrument used to manage or limit financial risk or to avoid losses resulting from negative changes in the market value of interest-, currency- or share-related transactions. A company aiming to "hedge" a particular transaction concludes another transaction linked to the under-lying business.

Impairment test

The carrying amount of an asset is compared with its fair value. If the fair value falls below the carrying amount, an impair-ment loss must be recognised. This procedure is particularly important for goodwill, which must be tested for impairment at least once each year. Impairment testing involves the creation of cash-generating units.

Incentive regulatory model

A regulatory model that includes an incentive to improve certain parameters, e.g. special network access tariffs that are designed to increase the produc-tivity of network operators. The regulatory authority defines a general upper limit for network tariffs for a specified regulatory period. In order to realise produc-tivity gains, this upper limit for the individual operators is reduced by corresponding deductions.

Inhabitant equivalent value

This indicators shows the expected biological burden of wastewater treatment facilities. It is based on the population equi-valent and calculated by adding the number of inhabitants and the population equivalent.

Interest cover

Ratio of FFO (funds from ope-rations) to interest expense.

International Financial Reporting Interpretation Committee/Standard Interpretation Committee (IFRIC, formerly SIC)

This committee is responsible for interpreting and providing more precise information on the IFRSs issued by the International Accounting Standards Board (IASB). International Financial Reporting Standards/ International Accounting Standards (IFRS, formerly IAS) The designation IAS was changed to IFRS in 2001; the lASs issued prior to that year are still published under the earlier designation. IFRSs/IASs are issued by the International Accounting Standards Board (IASB).

International Securities Identification Number (ISIN)

Individual security identification numbers allow for the com-puterised recording of securities on an international basis.


Non-public, in-house corporate computer network.

ISO 14001

International environmental management standard that defines the requirements for related systems.

Issuer Compliance Directive

Regulation issued by the Austrian Financial Market Author-ity in 2007. It defines principles for the flow of information in companies as well as organi-sational measures to prevent the misuse of insider information.

Kilowatt peak (kWp)

Maximum output of a photo-voltaic module or solar plant.

Management approach

Presentation of the management and controlling aspects of a company.

National allocation plan (NAP)

In the course of the EU emission trading each country in the European Union must prepare and publish a national allocation plan (NAP) that defines an upper limit for greenhouse gas emis-sions as well as the procedure for the issue and distribution of CO2 emission certificates.

Net debt coverage

Ratio of FFO (funds from opera-tions) to interest-bearing net debt.

Net debt

Net total of interest-bearing assets and liabilities (issued bonds and liabilities to credit institutes less loans, securities and liquid funds).

Net Operating Profit after Tax (NOPAT)

Taxable profit before the deduction of financing costs.

Network access fee

This one-off payment repre-sents compensation to the network operator for the expenses incurred in establishing a network connection or modifying a connection to accommodate increased demand by a network user.

Network loss

The difference between the electrical current fed into an elec-tricity network and the electrical energy that is actually delivered. Network losses generally arise due to the physical characteristics of the transmission lines.

Non-Governmental Organisation (NGO)

Not-for-profit companies that result from civic and social initiatives and include public-minded persons or organisations.

Other comprehensive income

The total of all income not recognised through profit or loss minus expenses for the reporting period that are not recognised through profit or loss.

Payout ratio

Ratio of dividends to earnings per share.

Peak load

See based load/peak load.

Polychlorinated biphenyl (PCB)

Toxic chlorine compounds.

PPP model (Public Private Partnership)

PPP projects involve the construction and financing of plants for customers; after a predefined period of time, the plant becomes the property of the customer. These projects were previously designated as BOOT projects.

Primary energy

Energy obtained from natural sources. In addition to fossil fuels such as natural gas, petroleum, black and brown coal, primary energy sources also include nuclear fuels like uranium and renewable energy sources like water, sun and wind.

Promissory note loan

Large-sized, long-term loans that are similar to bonds. The loans are issued to industrial cor-porations and the public sector in exchange for promissory notes held by banks, insurers and other capital providers. A promissory note includes the obligation to repay the principal together with interest. It represents proof that a loan was granted. These loans are not traded on an exchange.

Proportionate consolidation

The assets, liabilities, income and expenses of the subsidiary are included in the consolidated financial statements in proportion to the stake held by the parent company.

Rating/credit rating

Evaluation of issuers and bor-rowers based on their financial condition; examples of well-known international rating agen-cies are Standard & Poor's and Moody's.

Regulatory asset base (RAB)

The interest-bearing capital base equals intangible assets plus property, plant and equipment minus recognised fees for network access and operational readiness (construction subsidies) and any goodwill arising from balance sheet items. Adjustments are made to account for the stand-ardisation of depreciation periods and the release of construction subsidies.

Regulatory authority

Public authority responsible for monitoring the monopoly areas of the energy market (e.g. energy networks) to ensure free competition and fair pricing (also see E-Control GmbH (ECG)).

Renewable electricity

Electricity that is generated solely from renewable sources like water, wind, biogas, biomass, photovoltaic, geo-thermal, landfill gas and sewage gas.

Renewable energy

Energy that is considered to be continually available based on a human timeframe; this comes from sources such as biomass, biogas, geo-thermal, solar, hydro-power and wind.

Results from operating activities (EBIT)

See earnings before interest, taxes, depreciation and amortisation.

Return on Capital Employed (ROCE)

This ratio shows the return on the capital used in a company. For the calculation, net profit for the period and interest expense less tax effects are compared with average capital employed. In order to consist-ently show the development of the value contribution, operating ROCE (OpROCE) is adjusted for impairment losses, one-off EVN Full Report 2013/14 221 effects and the market value of the investment in Verbund AG.

Return on Equity (ROE)

Return on equity is used to evaluate the creation of value by a company on the basis of equity. For calculation purposes, net profit for period is compared with average equity.

Risk management

A procedure to identify, assess, minimise and avoid potential risks (business, operational, financial and event risks) wherever possible through appropriate measures.

Smart meter/metering

An electricity meter with an additional function that allows the utility company to read the meter offsite with an online system.

Spot market/spot trading

General designation for markets in which delivery, accept-ance of the goods and payment (clearing) are carried out immedi-ately after the conclusion of the business transaction (also see ARA region).


Individuals or groups who have an active interest in a company. In addition to the owners, stakeholders include employees, customers, suppliers, states, NGOs and local interest groups.

Sustainability index

In a business environment increasingly shaped by sustaina-bility and social responsibility, this type of index helps sustainability-oriented investors to identify companies that are industry leaders in ecological and social performance and demonstrate appropriate behaviour towards the environment and their stake-holders.

Syndicated loan

A binding commitment by a banking consortium to provide a line of credit which a company can draw upon in varying amounts, terms and currencies.

Thermal waste utilisation

The controlled industrial burning of waste at tempera-tures exceeding 1,000 °Celsius, which leads to the destruction or reduction of harmful substances. At the same time, the energy contained in the waste materials is released and used for electricity generation or district heating.

Total shareholder return

Benchmark for measuring the value development of a stock over a certain period of time; includes dividends and the increase in the share price.

UN Global Compact

An initiative launched by United Nations to support ecolog-ical and economic interests in the areas of human rights, work, the environment and corruption.

Value at Risk (VaR)

Process to calculate the potential loss arising from changes in the price of a specific trading position based on a cer-tain assumed level of probability.

Value chain elements

The electricity sector is generally divided into four value creation phases: generation, distribution, sale and consumption.

Value-oriented and value-generated management

Value-oriented management is focused less on traditional goals such as revenue or net profit, but on increasing stakeholder value. Included here are the interests of shareholders as well as other interest groups. All investment decisions are meas-ured based on their contribution to sustainable value. The main indicators used to assess the value development of EVN's business operations are economic value added and the return on capital employed.

VÖNIX (VBV Austrian Sustainability Index)

Share index comprising the listed Austrian companies that have taken the lead with regard to social and ecological performance.

Weighted Average Cost of Capital (WACC)

This indicator has two com-ponents - the cost of debt and the cost of equity - which are weighted according to their share in total capital. The cost of debt equals the actual, average credit interest adjusted for tax effects, while the cost of equity equals the return on a risk-free investment plus a risk mark-up that is calculated individually for every company.



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