Net Assets, Financial Position and Results of Operations

In the fiscal year 2017/2018, Energie AG generated sales revenues in the amount of EUR 1,625.8 million (previous year: EUR 1,686.7 million). External sales in the Energy Segment fell by EUR 96.0 million from EUR 989.2 million to EUR 893.2 million. The decline was mainly due to lower sales revenues from gas management and electricity trading as well as the reduced use of the Timelkam CCGT (combined cycle gas-turbine) power plant for grid reserve and congestion management compared to the previous year. A sales increase was achieved in all other Segments.

Group EBIT decreased by EUR 50.0 million from EUR 221.8 million in the previous year to EUR 171.8 million.

Earnings in the Energy Segment declined by EUR 28.1 million from EUR 109.8 million to EUR 81.7 million. EBIT for the Segment includes an impairment of EUR 2.5 million on the Timelkam CCGT power plant, which was recognised due to the current market situation for grid reserve and congestion management. An appreciation in the amount of EUR 20.9 million was recorded in the previous year. At 0.95, the hydro coefficient was about 5% below the standard production capacity, but at about the same level as in the previous year. Higher earnings contributions from several thermal generation plants had a positive impact.

In the Grid Segment, EBIT fell by EUR 42.1 million from EUR 99.8 million to EUR 57.7 million. The operating result for the previous year included positive earnings contributions of EUR 16.5 million from an appreciation of the electricity grid on the basis of fair value less costs of disposal. Volume declines and regulatory tariff reductions in the natural gas grid had a negative impact on the operating result. These effects were partially offset by volume and tariff increases in the electricity grid. The high efficiency of the Netz OÖ (100%) compared with other gas grid operators in Austria had a positive effect on the financial situation.

In the Waste Management Segment, EBIT rose by EUR 10.4 million from EUR 7.0 million to EUR 17.4 million. This figure for the first time includes the Group companies WDL GmbH and Komunala ODTOK d.o.o. (formerly VARINGER d.o.o.), which were previously allocated to the Water Segment. In addition to the absence of negative one-time effects from the previous year, earnings were positively influenced by positive price developments on the waste disposal market as well as by an increase in the price of steel scrap and copper. Volume increases were achieved in domestic and bulky waste, and in waste from mechanical-biological plants, while high throughput volumes were achieved at the thermal incineration facilities.

EBIT in the Water Segment in the previous year was characterised by negative one-time effects amounting to EUR 18.2 million. The Austrian and Slovenian markets have been allocated to the Waste Management Segment since 1 October 2017, which led to a decrease in the Segment result in the reporting period. In terms of operations, growth was achieved in the drinking water supply and waste water disposal sectors as well as in the service sector, with the result that EBIT in the Water Segment rose from EUR -8.1 million in the previous year to EUR 9.3 million in the 2017/2018 fiscal year.

EBIT of the Holding & Services Segment amounted to EUR 5.7 million in the reporting period, compared with EUR 13.3 million in the previous year. The decrease is mainly attributable to lower earnings from Group companies consolidated at equity.

Investments in Intangible Assets and Property, Plant and Equipment by Segments

2017/2018; previous year's figures in brackets

In fiscal year 2017/2018, investments in intangible assets and property, plant and equipment amounted to EUR 205.1 million, and were thus EUR 15.6 million or 8.2% above the previous year's level. The Grid Segment accounted with a share of 45.1% for the most part. Investments in the Holding & Services Segment include expanding the fibre-optic cable network and the smart meter rollout.

Net debt (non-current and current financial liabilities minus cash and cash equivalents) decreased by EUR 17.6 million from EUR 371.3 million to EUR 353.7 million compared to the previous year. This drop is due to lower financial liabilities on the one hand and increased liquidity on the other. Moreover, there was no new debt in fiscal year 2017/2018.

At EUR 258.0 million in the fiscal year 2017/2018, cash flow from operating activities was at a high level compared with EUR 278.8 million in the previous year.

The financial result improved from EUR -19.4 million in the previous year to EUR -13.7 million in the 2017/2018 fiscal year. This improvement was due in particular to lower interest expenses.