Good morning, ladies and gentlemen, welcome to the conference call on EVN's results for the first half of the 2022/2023 financial year. At this time, all participants have been placed on a listen-only mode. The floor will be open for your questions following the presentation. Let me now turn the floor over to your host, Mr. Stefan Szyszkowitz. Welcome, everybody, to EVN's conference call on our first half year's results. You have certainly taken note of our announcement of the special dividend last week. As we have communicated to you in the past, we are committed to ensuring you that our shareholder participate appropriately in any additional earnings growth. As a result of the proposed dividend that has now been approved and while preparing our half year report, we now have more forecast clarity. Hence, we announced on Monday last week to propose to the 95th Annual General Meeting, a special dividend in the amount of EUR 0.62 per share, in addition to the ordinary dividend for the financial year 2022/2023. The ordinary dividend will amount to at least EUR 0.52 per share. Additionally, we specified our guidance for this financial year. Based on the currently available information for the first half year and expected business development, we expect group net result to be at the upper end of the previously communicated range at around EUR 250 million. Let's come to EVN's first half year's result. In the reporting period, EVN achieved a sound financial performance, despite some still unfavorable framework conditions. This period was remarked by very mild weather conditions in all our three markets that affected the energy demand. A still volatile business environment affected our segment results to different degrees. Overall, we can report a positive development in our group net result in the first half of this year, thanks in particular to the generation, the Southeast Europe, and the environment segment. Unfortunately, results from our equity accounted energy distribution company, EVN KG, still remain under massive pressure. Our ambitious investment program for the expansion of renewables is progressing faster than considered in the budget. Over the coming years, annual investment will be increased to over EUR 600 million, with three-fourth going to Lower Austria, mainly in the field of network infrastructure, renewable generation, and drinking water supplies. In the second quarter, we commissioned the Windpark Japons as part of repowering in a photovoltaic plant in Grafenwörth. Currently, three further wind parks and three large-scale photovoltaic projects with a total capacity of roughly 110 MW are under construction. In line with our CO₂ emission reduction targets, set under the Science Based Targets initiative, our goal is to further grow our renewable generation portfolio. Wind capacities will be expanded by another 350 MW to 750 MW by 2030. Additionally, we will build up a photovoltaic portfolio of about 300 MW within this decade. Let me now continue with the key financials of this reporting period. In the first half year, the group's revenue was up by 3.1% year-on-year to EUR 2.2 billion. The main triggers for this development were price effects in renewable generation, valuation effects of hedges, and higher prices at EVN Wärme. In Southeast Europe, revenue decreased due to lower network and energy sales volumes and declined electricity prices. The decline could partly be offset by higher network tariffs and the unscheduled increase of electricity prices for the regulated household customer segment in North Macedonia. Focus on the major project in Cuba, it also positively influenced group revenue. The cost of electricity purchases from third parties and primary energy expenses dropped year-on-year by 22.1% to EUR 1 billion. This development reflects the decline in volumes in Southeast Europe. In contrast, higher costs for network losses and upstream network costs for Netz NÖ, and as well as higher energy procurement costs for EVN Wärme were recorded. Please be also aware that in the previous year, expenses were reduced by compensation payments of the Bulgarian government for the network losses. Operating expenses increased mainly due to the levy on the surplus proceeds earned from electricity generation, which has been payable in Austria since December last year. The share of results from at equity accounted investees declined significantly to minus EUR 143.3 billion. The earnings contribution from EVN KG sharply dropped due to the rise in procurement costs and valuation effects of hedges. Please keep in mind that higher costs can only be passed on to customers with a delay. Additionally, the provision for impending losses from contractual delivery obligations were increased. Negative effects also resulted from the valuation of natural gas inventories that were purchased in the previous year at significantly higher wholesale prices to protect supply security in view of the threatening stop in gas delivery. In total, group EBITDA amounted to EUR 466.4 million. Scheduled depreciation and amortization increased slightly according to our investments. Please be aware that prior years' figures reflect EUR 50.9 million from impairment testing. group's EBIT rose to EUR 303.8 million, and financial result improved to minus EUR 27.5 million, despite increased interest expenses and foreign exchange valuation effects. In total, group net result amounted to EUR 217.4 million. Let's move on to the next slide, which provides some information regarding the group's balance sheet structure. Balance sheet sum decreased due to the substantial decline in the carrying amount of equity accounted industries, which resulted primarily from the operating loss of EVN KG and negative valuation of hedges held by EVN KG and ENERGIEALLIANZ at the end of the reporting period. As of the end of March, EVN's net debt increased to EUR 1.7 billion. Besides the high investment program, this is mainly related to the working capital, primarily from the liquidity settlement for EVN KG. Correspondingly, gearing ratio amounted to 27.4%. Our financial flexibility remains solid. EVN AG has committed undrawn credit facilities in the amount of EUR 666 million at the end of March. Both rating agencies confirmed their view on EVN's credit worthiness just recently. Moody's reaffirmed its A1 rating with stable outlook, and Scope again, awards a rating of outlook, stable outlook. Let me now present our segments in more detail. First, the energy segment. The first half year of this financial year was characterized by mild temperatures, both year-on-year, as well as compared to long-term average. Hence, energy sales volumes to end customers declined compared to the previous years. Energy savings by customers, additionally, decreased volumes. The development of revenue in the energy segment depends mainly on energy trading, the marketing of electricity generated by EVN. Besides, it includes the revenues from our domestic heating business. Revenue of this segment increased significantly to EUR 660 million. This development was primarily due to the devaluation effects of hedges as of the balance sheet date, as well as price effects in the marketing of our own electricity production and in our heating business. The increase in operating expenses reflected higher procurement costs for the heating and business and for natural gas. Unfortunately, as already mentioned before, results from our equity accounted energy distribution company, EVN KG, remains under massive pressure. The earnings distribution contribution declined, and the half year loss amounted to minus EUR 223.1 million. Higher procurement costs can only be passed on to customers with delay in a changed competitive environment. Additionally, negative effects had to be recorded due to the following points: firstly, lower valuation of hedges as of the balance sheet date. This is an amount of EUR 83.2 million. Secondly, provisions for impending losses from contractual obligations were increased. This is an amount of around EUR 43 million. Thirdly, the lower valuation of strategic natural gas inventories had a negative effect. To protect supply security of our customers in view of the threatening stopping gas deliveries, we were forced in the previous year to purchase natural gas at significantly higher wholesale prices, and this has a negative amount of around EUR 51. All in all, this means that earnings at EVN KG are expected to remain negative in the current financial year. Based on these developments, segment EBITDA amounted to minus EUR 46.4 million, and EBIT decreased to minus for EUR 57.1 million. Today, I will also provide an update to our segment outlooks, which we published last December. You may also find an overview of all segments in the appendix of this presentation. For the energy segment, we had to adjust our guidance as the ongoing difficult market environment for distribution will still have a negative effect on the development of earnings in this segment throughout the entire financial year. Segment earnings are expected to be negative and will generally reflect the previous year. Effects on the valuation of hedges as of their respective reporting dates could lead to deviations. On the next slide, I will present the developments of our generation segment. Electricity generation volumes were down by 25% compared to last year. The main trigger for this decline was a decrease in the use of the Theiß power plant by the Austrian Network Transmission operator for network stabilization. Significantly lower wind flows couldn't be offset by higher electricity production from hydropower. The share of renewable generation increased year-on-year by up to 72%. Revenue increased to EUR 253.6 million. Higher electricity prices were able to offset the decline in electricity production. Operating expenses increased by 71.5% due to the Energy Crisis Contribution - Electricity. The Austrian law became effective at the 1st of December last year and will apply for a limited period until the end of the year 2023. The price cap for the tax is EUR 140 per MWh and can be increased up to EUR 176 per MWh, subject to investments into renewable generation assets and energy efficiency measures. As of the beginning of May last this year, the thresholds were reduced by a federal government resolution to EUR 120 per MWh, respectively, EUR 156 per MWh, beginning in June 2023. The effect of this first half year amount to EUR 18.5 million and is expected to increase to about EUR 50 million in the full financial year. This is, of course, based on resolutions currently in force. The directives by the ministry regarding the concrete calculation details are still pending. EBITDA of the generation segment increased to EUR 154.7 million. Segment A, EBIT also increased year-on-year to EUR 132.7 million. Please, bear in mind, last year's revaluation of the Kavarna wind park in Bulgaria, that amounted EUR 64 million as of the end of March. The decline in generation volumes and the current decline in electricity prices have required an adjustment of the outlook of this segment. Earnings for this financial year are expected to remain at high level, will be lower than previous year. Let's continue with the network segment. The mild temperatures in the first half year of this business segment also influenced our network segment. Network distribution volumes decreased year-over-year for both the industrial as well as the household customers. Additionally, customers' energy saving efforts negatively affected the volumes. The main trigger for the decline in volumes was related to the lower use of our Theiß power plant for network stabilization by the transmission grid operator, APG. Segment revenues in the reporting period was up to EUR 356.9 million. Positive price effects for the electricity could offset the volume-related decline in revenue from natural gas. A positive revenue contribution was also recognized by our subsidiary, kabelplus. Operating expenses increased year-over-year because of the prevailing high inflation. This led to significantly increased costs for network losses and upstream network costs. In total, EBITDA slightly increased to EUR 156.3 million, and EBIT increased to EUR 82.8 million. I confirm the guidance for the network segment. Earnings before tax are expected to be below the previous year, due to lower WACC in the new regulatory period for natural gas distribution. Additional factors include customer savings in electricity and natural gas consumption and inflation-related increase in operating costs. Let's move on to the Southeast Europe segment. Temperatures in Southeast Europe in the reporting period were significantly below the previous year and the long-term average, which led to a decline in network and energy sales volumes. Electricity generation volumes could be raised in the first half year, especially due to higher water flows in North Macedonia, as well as the newly commissioned photovoltaic plant in North Macedonia in October last year. Segment revenues fell by 12.5% to EUR 901.4 million. Higher network tariffs in Bulgaria and an unscheduled increase in electricity prices for the regulated household customer segment in North Macedonia, couldn't offset lower sales volumes and the decline in electricity prices. Operating expenses were reduced by 22.3% because of the following facts: cost for the third-party electricity purchases and energy carriers dropped correspondingly to the development of revenue. Secondly, cost of network loss coverage in North Macedonia was reduced due to government subsidized purchases. Thirdly, in the previous year, Bulgaria benefited from government compensation payments for the network losses caused by higher energy prices. In total, segment EBITDA amounted to EUR 117.7 million, and segment EBIT was up to EUR 77.9 million. Thanks to the positive development of business and the regulatory measures that we are taking to offset the additional cost of network losses, we have a positive outlook for the Southeast Europe segment. Earnings for this financial year are expected to exceed the privately communicated EBIT range from EUR 40 million-EUR 60 million. Now finally, the environment segment. In our international project business, we currently work on 14 projects in the field of wastewater treatment, drinking water treatment, and thermal sludge. In April, we received the order for the construction of a wastewater treatment plant and a sewage sludge utilization plant in Skopje, as part of a general contractor assignment. The contract value is around EUR 185 million. The total order book as of the end of March, amounted to roughly EUR 600 million. At our project in Kuwait, we are also making great progress. At the end of March, completion has reached roughly 85% of the wastewater treatment plant and nearly 60% of the wastewater infrastructure. This development points to the upcoming peak of the project. Revenue of this segment increased to EUR 267.7 million, mainly as a result of good progress made at the Kuwait project. Correspondingly, operating expenses raised. The Kuwait project also positively affected earnings contribution from equity accounted investees. In total, EBITDA amounted to EUR 35.4 million, and EBIT increased to EUR 18.4 million. It should be noted that the previous year was affected by an impairment loss at the amount of EUR 57.3 million. Financial result and reporting period declined due to increased interest expenses and negative foreign exchange effects. Result before income tax rose to EUR 4.7 million. Based on the developments during the first half year, we confirmed this segment's guidance. Earnings are expected to improve in this financial year. Please note that in the previous year, non-recurring effects from impairment losses were included. The next slide shows the development of our group cash flow in the reporting period. Gross cash flow in the reporting period was high, higher compared to previous year, at EUR 634.3 million. The main drivers for this development were higher earnings recorded in the reporting period and the correction of the negative earnings at the equity accounted EVN KG. This development was weakened by lower dividend distributions from other equity accounted investees. Cash flow from operating activities decreased to minus EUR 94.4 million. Triggers for this development were the higher liquidity settlement for EVN KG, and the related capital commitment for working capital. A negative effect was also the year-to-year increase in income tax payments. The cash flow from investing activities increased to minus EUR 126.5 million compared to the previous year. The position includes high investments, which were contrasted by year-on-year reduction in investments in cash funds. A capital contribution to EVN KG at the amount of EUR 128.4 million was made. Cash flow from financing activities amount minus EUR 72.8 million. It affects EVN's dividend payment for the last financial year, as well as scheduled repayments of financial liabilities. Additionally, in the reporting period, we concluded two long-term bank loans totaling EUR 150 million. The net change in cash and cash equivalents amounted to minus EUR 293.7 million. As already mentioned before, EVN has committed undrawn credit facilities of EUR 666 million as at the end of March. I would like to conclude my presentation with the outlook for this financial year. As already mentioned at the beginning of today's presentation, we announced a proposal for a special dividend together with the specification of our full year guidance on 15th of May. To wrap up again, based on the currently available information for the first half year results and expected business development, our group net result in this current financial year is expected to be at the upper end of the previously communicated range at around EUR 250 million. In addition, this year's earnings contribution from Verbund amounts EUR 158 million, and will additionally contribute to the group's net result. It has always been our aim to ensure that our shareholders will participate appropriately in any additional earnings growth. Hence, we will propose to the next ordinary AGM in February 22, 2024, a special dividend of EUR 0.62 per share, in addition to the ordinary dividend, as is expected to amount at least EUR 0.52 per share. The dividend proposal already considers our ambitious investment program. We will exceed the previous investment level for the current financial year and subsequent years from EUR 500 billion to EUR 600 billion. The focal points of investments are on network infrastructure, renewable generation, and drinking water suppliers. I've reached the end of my presentation. I'm looking forward to answer your questions. Thank you very much. Ladies and gentlemen, if you would like to ask a question, please press nine and star on your telephone keypad. In case you wish to withdraw your question, please press nine and star again. Please press nine and star to register for a question. First up is Peter Crampton from Barclays. Over to you. Good morning, Peter Crampton here from Barclays. Two questions, if I may. The first one relates to the Austrian government recently coming out with comments that they would want lower energy retail bills, and just your thoughts, you know, on this and what the government could, you know, really do. The second question relates to your guidance for this year, which looking at kind of the half year performance and then the Verbund dividend, looks very conservative, and maybe talking a little bit how this guidance was set and what are kind of negative factors here for the remaining 6 months that made you set the guidance where it is? Thank you. Thanks, Peter. First of all, coming out of this crisis from last year, you know that also the European Union has given additional directives and opportunities to national governments how to handle the situation. After a long debate, they concluded that they're not gonna try to change the merit order as a pricing mechanism in this common market, but they also said there can be subsidies, yeah, to different customer groups, and there can be also a price regulation, a temporary one, and end consumer prices. If we're discussing what proposals and possibilities the government could try to use, it's always the question mark, how they want to target and how to focus. What they did is that they really had a quite big program by helping to subsidize business and their energy costs on the base of last year. They also did something for private households, that in the range between EUR 0.10 and EUR 0.40, it's compensated 90% of an average household, is therefore more or less subsidized in the kilowatt hour price, which the customers to pay. If we take this to our customer base in Lower Austria, we see that around 80% of our households, customers who use electricity for electricity purpose and not for heating, 80% of them are more or less therefore compensated with a kilowatt hour price of around EUR 16 something on a cross level. Therefore, in this customer, on this customer base, the state has already taken measures, and therefore it is more, I think, the vision, the expectation, how the inflation can be handled on a national level, and what are the best mix of measures they can take. The debate is ongoing. I'm not quite sure where they are heading, but I just can report on the facts which are available so far. Regarding your second question, the guidance, you know that the winter half is the important half of our business, and due to this extraordinary situation, we made a decision in December to split between the operative business, which of course, is depending on a lot of different factors, and Verbund. Verbund is excluded, yeah, out of the guidance of the EUR 250. If you put the two things together, you know the kind of dimension which we are having, which is out of every guidance we ever have given, yeah, in the last 30 years of the stock listing of EVN Group. Okay, thank you very much for your answers. Very useful. The next questioner is Richard Alderman from BTIG. Over to you. Good morning. Just following up from that last question or last answer to Peter. The consensus, I think, before you upgraded your outlook, including the Verbund contribution, was EUR 337 million for group net result, and it's moved post your guidance uplift to EUR 351. Can you say whether you're comfortable with that move, and can you think of reasons why the streets could be wrong in that assumption based on your second half performance? I know you tend to be conservative at this stage of the year, so I appreciate that's the situation. What things could go wrong that might pull you back towards or below the top end of guidance that you moved to on May the 16th? That's the first question. Secondly, could you just give us some thoughts around the board discussion on the special dividend? It doesn't look like you've passed through 100% of the Verbund contribution. It's closer to 70%, despite the fact, obviously, you've had a very strong first half of the year and guided up a couple of weeks ago. How do you think about that in terms of what the board might be wanting to do at the end of the year? Could it increase the special dividend slightly, as one way of rewarding a strong full year in total? Could the ordinary dividend be at meaningfully above the EUR 0.52 base that you gave us on May 16th? Thank you. Thanks, Richard. First of all, let's do the math again, yeah? The consensus you mentioned were EUR 351 together, huh? If we do now the guidance and put the two factors together, the operative target of EUR 250, and the Verbund of EUR 158, and we are above EUR 400, yeah? This is what we see, if we reflect on the different factors, and we have seen also this special increase in taxation for generation. There's a lot of things going on. I think this EUR 400, beyond the EUR 400, yeah, is a guidance which we feel fine with. Regarding Verbund, it has been debated last year quite extensively when the crisis hit, yeah, also the end customers, that the state said, this is not possible for Verbund to do a special dividend. Then, of course, it was debated, if they are doing a special dividend, how is EVN then able, yeah, to pass it through? We said, "You know, first of all, this is a different body, a different stock-listed company. They have to do their decisions in the AGM first, and then we can decide what to do." This is always being debated with all different kind of investors also, because it's an topic, it is an obvious question. When we then saw that we have the possibility to further speed up investments in especially renewable energy generation, because the delay in permitting after the pandemic was over. We said, "Okay, it might be a good trade-off that we stick to our public references that we will pass through two-thirds around, and that we one-third invest in the further growth of the generation capacity," because this is also something which on the mid and long term will be decisive for EVN Group's stability, that we are able to increase our own generation. We have this target to 2030. With these steps, we hope that we will accelerate our delivery on generation capacity, and therefore, this 110 MW-120 MW under construction will also, in this pricing environment, immediately bring us also return. I think it's quite a fair reasoning, yeah, what to pass through and what to invest in the further development of the group. Can I ask one further question then? In terms of the way that your gearing and net debt is developing, it's still obviously extremely low compared to peers. Are you saying that you don't think there'll be excess cash flow being generated by the business through the full year and into next year? With the benefit of your hedging, even on lower prices, you should keep quite low gearing compared to your peers. Well, you know, the first half of our financial year, is always, of course, heavily influenced by the winter, yeah? Therefore, also the pre-financing, yeah, of the energy, which we bought to deliver to our customers, of course, is straining more working capital for EVN than we ever had, yeah. Hopefully, this is a short, midterm perspective when markets are more balanced, yeah, and this kind of delay between procurement and passing to the end customers is not having this kind of dynamic as we have seen, yeah. The second thing is that due to the delivery of the Kuwait project, yeah, we are peaking in this project, and therefore, we're also expecting, yeah, in the next period, then, that the cash, which is there, in partly bound as a working capital, is coming back. Yeah. These are two individual factors, yeah, which additionally influence the normal winter energy cash needs, yeah. On this level, I think we have seen extraordinary facts, which then come back to a midterm perspective. Nevertheless, yeah, this project of Europe, yeah, to have the energy transition made in very short period, yeah, we need a lot of investments, yeah. Whatever we can do, we have to take all the opportunities and the chances, but also ensure the stability of the group is, of course, maybe a different story than we had the last three, five, or ten years, yeah. To find the right balance, is what we're discussing, of course, with the boards, also, to make sure that EVN Group is developing well. Thank you. The next question comes from Teresa Schinwald, from Raiffeisen Bank International. Over to you. Thank you. Hello, thanks for taking questions. There are four of them today, I'll make it quick. Could you please repeat the revenue cap impact? I might not have gotten the right numbers, what you're expecting from the old threshold and also the new one. The next one is on the valuation effect, and it's implied impact on the earnings of EVN KG. They applied for the first half, if I'm right, which would add up to an operating loss of about EUR 65 million-EUR 60 million in the second quarter at EVN KG. To get a feeling where this is heading, and I guess it's also less because it's summer and volumes are lower. In what dimension can we think of when looking at the continued losses at EVN KG for the remainder of the current business year? Also one question on this contractual obligations. Could you also please tell us a bit more about which contract we're talking about? The last one is on this classic end customer price issue. The customers have until the end of June to change the contracts. What take up are you expecting, and what's the impact you're reckoning with on revenue and earnings if you already got a feeling? Thank you. Thanks, Teresa. First of all, we are now expecting, under the assumption that these directives by the ministry are issued, as has been discussed. On the assumption that the initiative legal proposal is now voted for in June, we expect around, for the total year, around EUR 50 million. Please keep in mind, the whole project of taking this levy is something which is having envisioned higher energy prices last autumn, as they are now. They have envisioned high volumes of production, which are lower, as we discussed before, than we thought and planned. Yeah, therefore, this kind of putting together EUR 50 million, I think, is quite a stable expectation on the basis of the currently available information. The second of the evaluation effects, if I go back to this kind of reference I gave, the negative effects, the lower valuation of hedges in the balance sheet is around EUR 83.2. Provision for impending losses on contractual obligations were increased to EUR 43, and the inventory of gas is around EUR 51. Regarding the contractual obligations, you know, we are selling customer groups products, and these products are of course, calculated in the period when they are issued and signed. Over the different development of wholesale prices development, some of them, especially in the change of the term in the last 18 months, came under pressure, and therefore, this is reflected here. Regarding the classic campaign, this is the last step of the transformation since the liberalization of the market. Yeah. Traditionally, there had been a pricing commission in the economy ministry, and after the liberalization and, of course, the separation of the grid, so the energy prices, there were still a very high number of customers in this old, not bilateral contractual system, but more or less in one group, which has generally shift speeding. Due to this high volatility of energy market, this became to a big problem because there every clause in this Allgemeine Geschäftsbedingungen is something which can be taken to court quite easily, and this has happened with our prices increase in September 2022. To make sure that we are not just having the same problem, but just prolonging the index in this customer group, we made the decision to stop this product group and offer the customers a step over to a guarantee for gas and electricity for one year, priced with then in March, April, bought energy on already lower levels. The average pricing of this has been done, and we are now with 180,000 of customers who have so far taken this opportunity. What we see is that, of course, a very traditional customer base, a lot of the data has to be updated. We have around 10% where there's no consumption or relevant consumption on the electrometer. I'm also expecting the biggest clearance of customer data since liberalization. I would be fine if we achieve around 2/3 and 80% there, because then this big step of tariff reform is done. Not just for this first half year of 2023, but it's done forever, because then we have only customer base on bilateral contractual basis. Awesome. Thank you. Very helpful. At the moment, there are no further questions, so if you have any additional questions, please press nine and star now. Please press nine and star if you would like to ask another question. Thank you for joining. Yeah? Yeah, sorry. No further questions. Yeah, thanks a lot. Thank you for joining today's conference call. We will publish the results for the first three quarters of this financial year on Thursday, the 24th of August. Have a nice day, and enjoy the upcoming summer. Goodbye.