1. Developments in the EU-wide electricity market lead to a reduction in the value of the power plant Dürnrohr and the participation in Verbund Innkraftwerke GmbH
2. The current assessment of the realisation of the planned waste incineration plant
no. 1 as well as the cogeneration heat and power plant and the sludge drying system in Ljuberzy, Moscow, leads to impairments
According to the international accounting standards (IAS 36), EVN AG is obliged to conduct impairment tests both regularly and upon the occurrence of certain events; on this basis and in connection with the preparation of the short and medium term business plans as well as the preparation of the Annual Report 2013/2014 as of 30 September 2014 EVN identified additional reasons for impairment of roughly EUR 295m, which will negatively impact the operating result 2013/14.
Significantly lower estimates of long term electricity price developments, based on current market analyses, require an impairment of about EUR 24m of the power plant Dürnrohr. Likewise, such electricity price estimates require an impairment of about EUR 41m of the goodwill from the purchase of Verbund Innkraftwerke GmbH.
While positive progress becomes apparent on the sodium hypochlorite plant project in Moscow, the current assessment of developments led to significant doubts about the realisation of the waste incineration plant no. 1 project and required an impairment of about EUR 190m; they also required an impairment of about EUR 40m of the cogeneration heat and power plant and the sludge drying system in Ljuberzy, Moscow.
While the impairments will reduce the annual result, they are not cash effective and therefore have no impact on the expected dividend payments.
Maria Enzersdorf, 4 September 2014
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