Strong financials, transparency and a strong dividend-oriented capital market policy

The focus of EVN’s financial strategy is to maintain financial stability while preserving its financial flexibility as the basis for ensuring the optimal financing structure and costs. These goals are achieved by striving for a balanced capital structure, a sufficient matching of maturities in financing with financial assets as well as making use of a diverse range of financial instruments. On balance, EVN aims to maintain its stable creditworthiness on a long-term basis as demonstrated by a credit rating in the “A” range granted by external rating agencies.

In addition to its successful positioning on the capital market, the medium- and long-term financing capacity of EVN depends on the development of its cash flow. The effects of project and investment decisions on the cash flow, the investment period and return on investment correspondingly determine their selection and prioritization. The Group-wide financial planning system was adapted to increase the security, profitability and efficiency of EVN’s efforts to ensure a sufficient supply of liquidity.

The EVN AG share has been listed on the Vienna Stock Exchange since November 28, 1989. About 14% of the shares are held in free float in the financial year 2009/10. In October and November 2010 performed a capital increase of 10% of the share capital. The majority shareholder is the NÖ Landes-Beteiligungsholding GmbH due to constiutional stipulations, holding 51% of the stock. EnBW helds 32.5%, and remaining shares (16.5%) are free float. Taking into account a dividend of EUR 0.40 per share (proposal to the Annual General Meeting) for the 2009/10 financial year, the total shareholder return has amounted to 8.86% per annum since the Initial Public Offering. As demonstrated by a dividend payout ratio of 25 – 35% in recent years, EVN aims to achieve a balance between growth investments in the sustainable development of the company and continuing dividends for shareholders which can be maintained even in the light of a temporary decline in earnings.

Further information is available here.