DGAP-Adhoc: EVN AG: Ad-hoc announcement - New tariffs in Bulgaria and Macedonia will lead to impairments and a negative group net result

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| Source: EQS Group AG
EVN AG  / Key word(s): Profit Warning

02.07.2014 13:29

Dissemination of an Ad hoc announcement, transmitted by DGAP - a company of
EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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As per 30 June 2014, the regulatory authorities in Bulgaria and Macedonia
announced the following changes in electricity tariffs:

In Bulgaria, the tariff for the period 1 July 2014 to 30 June 2015 foresees
a significant increase for EVN Group's purchase price for electricity. In
parallel end customer prices were only marginally increased by not fully
reflecting the effective cost base of the respective EVN companies as well
as by introducing a new tariff element the economic effect of which is to
retransfer revenues incurred by EVN Group during previous regulatory
periods.

In Macedonia, effective from 1 July 2014, the tariffs for network usage
will only marginally increase and end customer prices will increase below
expected levels. In addition cost elements associated with the next step in
the market liberalization starting with 1 January 2015 were not reflected
in the decision on 30 June 2014.

As a result of such tariff decisions, in combination with the current
economic situation and outlook, mid term expectations for EVN Group's
operations in Bulgaria and Macedonia had to be reevaluated resulting in
impairments of goodwill and customer base in full (EUR 148.9m and EUR
43.0m), a partial impairment of other assets (EUR 15.0m) as well as a
negative net effect resulting from an initial recognition of a regulatory
liability in Bulgaria (EUR 54.0m). The aggregate effect of these measures
will amount to EUR 260.9m on EVN Group's operating result (EBIT), thereof
attributable EUR 210.1m to Bulgaria and EUR 50.8m to Macedonia.

Due to these effects, EVN AG's management expects a negative group net
result for EVN Group's financial year 2013/14. Those measures are mainly
non cash effective and should therefore have no influence on the expected
dividend payouts.


Maria Enzersdorf, 2 July 2014



LEGAL NOTICE
THIS AD-HOC ANNOUNCEMENT CONSTITUTES NEITHER AN OFFER TO SELL NOR A
SOLICITATION TO BUY ANY SECURITIES OF EVN AG.

THIS AD-HOC ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR
DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA AND MUST NOT BE
DISTRIBUTED TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED ("SECURITIES ACT")) OR TO PUBLICATIONS
WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS AD-HOC ANNOUNCEMENT
DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO
PURCHASE ANY SECURITIES IN THE UNITED STATES. THE SECURITIES HAVE NOT BEEN
AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE OFFERED,
SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT
REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.


02.07.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      EVN AG
              EVN Platz
              2344 Maria Enzersdorf
              Austria
Phone:        +43-2236-200-12294
Fax:          +43-2236-200-82294
E-mail:       info@evn.at
Internet:     www.evn.at
ISIN:         AT0000741053
WKN:          074105
Indices:      ATX
Listed:       Wien (Amtlicher Handel / Official Market)
 
End of Announcement                             DGAP News-Service
 
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