EVN AG. Arranger Deutsche Bank. Dealers. BayernLB BNP PARIBAS Commerzbank. Deutsche Bank Erste Group Bank AG Landesbank Baden-Württemberg

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1 This document constitutes the base prospectus in respect of non-equity securities ("Non-Equity Securities") within the meaning of Art. 22 No. 6(4) of the Commission Regulation (EC) No. 809/2004 of 29 April 2004, as amended (the "Commission Regulation") (the "Debt Issuance Programme Prospectus", or the "Prospectus"). This Prospectus constitutes a prospectus for the purposes of Article 5.4 of the Prospectus Directive and the Luxembourg law relating to prospectuses for securities of 10 July 2005 (Loi relative aux prospectus pour valeurs mobilières), as amended (the "Luxembourg Law"), which implements Directive 2003/71/EC of the European Parliament and the Council of 4 November 2003, as amended (the "Prospectus Directive"). Debt Issuance Programme Prospectus Dated 25 January 2017 EVN AG EUR 2,000,000,000 Debt Issuance Programme (the "Programme") Application has been made to list notes to be issued under the EUR 2,000,000,000 Debt Issuance Programme (the "Notes") on the Official List of the Luxembourg Stock Exchange and to admit Notes to trading on the Regulated Market "Bourse de Luxembourg", which is a regulated market within the meaning of Directive 2004/39/EC and appears on the list of regulated markets issued by the European Commission (the "Regulated Market"). Notes issued under the Programme may also not be listed at all. EVN AG ("EVN" or the "Issuer" and, together with its consolidated subsidiaries, the "EVN Group") has requested the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (the "CSSF") in its capacity as competent authority under the Luxembourg Law, to approve this Prospectus and to provide the competent authorities in the Federal Republic of Germany, the Republic of Ireland and the Republic of Austria with a certificate of approval attesting that the Prospectus has been drawn up in accordance with the Luxembourg Law relating to prospectuses for securities (each a "Notification"). The Issuer may request the CSSF to provide competent authorities in additional host Member States within the European Economic Area with a Notification. By approving a prospectus, the CSSF shall give no undertaking as to the economic and financial soundness of the operation or the quality or solvency of the Issuer, in accordance with Article 7(7) of the Luxembourg Law. Arranger Deutsche Bank Dealers BayernLB BNP PARIBAS Commerzbank Deutsche Bank Erste Group Bank AG Landesbank Baden-Württemberg Raiffeisen Bank International AG SEB UniCredit Bank Austria Société Générale Corporate & Investment Banking This Prospectus will be published in electronic form on the website of the Luxembourg Stock Exchange ( and on the website of EVN AG ( This Prospectus is valid for a period of 12 months from the date of its approval.

2 2 RESPONSIBILITY STATEMENT EVN AG, with its registered office in Maria Enzersdorf, is solely responsible for the information given in this Prospectus and for the information which will be contained in the Final Terms (as defined herein). The Issuer hereby declares that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is, to the best of its knowledge, in accordance with the facts and contains no omission likely to affect its import. NOTICE This Prospectus should be read and understood in conjunction with any supplement hereto and with any other document incorporated herein by reference (see "Documents incorporated by reference" below). Full information on the Issuer and any series of Notes is only available on the basis of the combination of the Prospectus and the relevant Final Terms (the "Final Terms"). The Issuer has confirmed to the dealers set forth on the cover page and any additional dealer appointed from time to time under the Programme (each a "Dealer" and together the "Dealers") that this Prospectus contains all information with regard to the Issuer and any Notes which is material in the context of the Programme and the issue and offering of Notes thereunder, that the information contained therein is accurate in all material respects and is not misleading, that the opinions and intentions expressed herein are honestly held, that there are no other facts, the omission of which would make this Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect, and that all reasonable enquiries have been made to ascertain all facts and to verify the accuracy of all statements contained therein. No person has been authorised to give any information which is not contained in or not consistent with this Prospectus or any other document entered into or any other information supplied in connection with the Programme and, if given or made, such information must not be relied upon as having been authorised by or on behalf of the Issuer, the Dealers or any of them. This Prospectus is valid for 12 months following its publication and it and any supplement hereto as well as any Final Terms reflect the status as of their respective dates of issue. The delivery of this Prospectus or any Final Terms and the offering, sale or delivery of any Notes may not be taken as an implication that the information contained in such documents is accurate and complete subsequent to their respective dates of issue or that there has been no adverse change in the financial condition of the Issuer since such date or that any other information supplied in connection with the Programme is accurate at any time subsequent to the date on which it is supplied or, if different, the date indicated in the document containing the same. The Issuer has undertaken with the Dealers to supplement this Prospectus or publish a new Prospectus if and when the information herein should become materially inaccurate or incomplete, and has further agreed with the Dealers to furnish a supplement to the Prospectus in the event of any significant new factor, material mistake or inaccuracy relating to the information included in this Prospectus which is capable of affecting the assessment of the Notes and where approval by the CSSF of any such document is required, upon such approval having been given. To the extent permitted by the laws of any relevant jurisdiction, neither the Arranger nor any Dealer nor any other person mentioned in this Prospectus, excluding the Issuer, is responsible for the information contained in this Prospectus or any supplement thereof, or any Final Terms or any other document incorporated therein by reference and, accordingly, and to the extent permitted by the laws of any relevant jurisdiction, none of these persons accepts any responsibility for the accuracy and completeness of the information contained in any of these documents. The distribution of this Prospectus, any document incorporated therein by reference and any Final Terms and the offering, sale and delivery of Notes in certain jurisdictions may be restricted by law. Persons into whose possession this Prospectus or any Final Terms come are required by the Issuer and the Dealers to inform themselves about, and to observe, any such restrictions. For a description of certain restrictions on offers, sales and deliveries of Notes and on the distribution of the Prospectus or any Final Terms and other offering material relating to the Notes, in the United States of America, the European Economic Area, the United Kingdom of Great Britain and Northern Ireland and Japan see "Selling Restrictions". In particular, the Notes have not been and will not be registered under the United States Securities Act of 1933, as amended, and are subject to U.S. tax law requirements.

3 3 Subject to certain exceptions, Notes may not be offered, sold or delivered within the United States of America or to U.S. persons. The language of this Prospectus is English. Any part of this Prospectus in the German language (except for the financial statements of the Issuer incorporated by reference into the Prospectus) constitutes a translation. In respect of the issue of any tranche of Notes under the Programme (each a "Tranche"), the German text of the Terms and Conditions may be controlling and binding if so specified in the relevant Final Terms. This Prospectus may only be used for the purpose for which it has been published. This Prospectus and any Final Terms may not be used for the purpose of an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Neither this Prospectus nor any Final Terms nor any further information supplied in connection with the Programme or the Notes constitute an offer or an invitation to subscribe for or purchase any Notes. Each investor contemplating purchasing Notes should make its own independent investigation of the financial condition and affairs, and its own appraisal of the creditworthiness, of the Issuer. In connection with the issue of any Tranche of Notes under the Programme, the Dealer or Dealers (if any) named as the stabilising manager(s) (or persons acting on behalf of any stabilising manger(s)) in the applicable Final Terms may over-allot Notes or effect transactions with a view to supporting the price of the Notes at a level higher than that which might otherwise prevail. However, there is no assurance that the stabilising manager(s) (or persons acting on behalf of any stabilising manager(s)) will undertake stabilisation action. Any stabilisation action may begin at any time after the adequate public disclosure of the terms and conditions of the offer of the relevant Tranche of Notes and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the Issue Date of the relevant Tranche and 60 days after the date of the allotment of the relevant Tranche of Notes. Any stabilisation action or over-allotment must be conducted by the relevant stabilising manager(s) (or persons acting on behalf of any stabilising manager(s)) in accordance with all applicable laws and rules. Each Dealer and/or each further financial intermediary subsequently reselling or finally placing Notes issued under the Programme is entitled to use the Prospectus as set out in "Consent to the Use of the Prospectus" below. Any websites included in the Prospectus, except for the website are for information purposes only and do not form part of the Prospectus

4 4 FORWARD-LOOKING STATEMENTS This Prospectus contains certain forward-looking statements. A forward-looking statement is a statement that does not relate to historical facts and events. They are based on analyses or forecasts of future results and estimates of amounts not yet determinable or foreseeable. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases, including references and assumptions. This applies, in particular, to statements in this Prospectus containing information on future earning capacity, plans and expectations regarding EVN Group's business and management, its growth and profitability, and general economic and regulatory conditions and other factors that affect it. Forward-looking statements in this Prospectus are based on current estimates and assumptions that the Issuer makes to the best of its present knowledge. These forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results, including EVN Group's financial condition and results of operations, to differ materially from and be worse than results that have expressly or implicitly been assumed or described in these forward-looking statements. EVN Group's business is also subject to a number of risks and uncertainties that could cause a forwardlooking statement, estimate or prediction in this Prospectus to become inaccurate. Accordingly, investors are strongly advised to read the following sections of this Prospectus: "Risk Factors" and "EVN AG". These sections include more detailed descriptions of factors that might have an impact on EVN Group's business and the markets in which it operates. In light of these risks, uncertainties and assumptions, future events described in this Prospectus may not occur. In addition, neither the Issuer nor the Dealers assume any obligation, except as required by law, to update any forward-looking statement or to conform these forward-looking statements to actual events or developments.

5 5 TABLE OF CONTENTS Page Summary... 6 Section A Introduction and Warnings... 6 Section B Issuer... 7 Section C Securities... 9 Section D Risks Section E Offer German Translation of the Summary Abschnitt A Einleitung und Warnhinweise Abschnitt B Emittentin Abschnitt C Wertpapiere Abschnitt D Risiken, die der Emittentin eigen sind Abschnitt E Angebot Risk Factors Risk Factors regarding EVN Group Risk Factors regarding the Notes Consent to the use of the Prospectus General Description of the Programme General Issue Procedures EVN AG Terms and Conditions of the Notes English Language Version Option I - Terms and Conditions that apply to Notes with fixed interest rates Option II - Terms and Conditions that apply to floating rate Notes Terms and Conditions of the Notes (German Language Version) Option I - Anleihebedingungen für Schuldverschreibungen mit fester Verzinsung Option II - Anleihebedingungen für Schuldverschreibungen mit variabler Verzinsung Final Terms Description of Rules Regarding Resolutions of Holders Taxation Selling Restrictions General Information Use of Proceeds and Reasons for an Offer Interests of Natural and Legal Persons involved in an Issue/Offer Authorisation Listing and admission to trading Documents incorporated by Reference Availability of Documents / Documents on Display Names and Addresses

6 6 SUMMARY Summaries are made up of disclosure requirements known as "Elements". These elements are numbered in Sections A E (A.1 E.7). This summary (the "Summary") contains all the Elements required to be included in a summary for this type of Notes and Issuer. Because some Elements are not required to be addressed, there may be gaps in the numbering sequence of the Elements. Even though an Element may be required to be inserted in the Summary because of the type of Notes and Issuer, it is possible that no relevant information can be given regarding the Element. In this case, a short description of the Element is included in the Summary with the mention of "not applicable". [The Summary contains options, characterised by square brackets or typesetting in italics (other than the respective translations of specific legal terms), and placeholders regarding the Notes to be issued under the Programme. The summary of the individual issue of Notes will include the options relevant to this issue of Notes as determined by the applicable Final Terms and will contain the information, which had been left blank, as completed by the applicable Final Terms.] 1 Element Section A Introduction and warnings A.1 Warnings Warning that: this Summary should be read as an introduction to the Prospectus; any decision to invest in the Notes should be based on consideration of the Prospectus as a whole by the investor; where a claim relating to the information contained in the Prospectus is brought before a court, the plaintiff investor might, under the national legislation of the Member States, have to bear the costs of translating the Prospectus, before the legal proceedings are initiated; and civil liability attaches only to the Issuer who has tabled the Summary including any translation thereof, but only if the Summary is misleading, inaccurate or inconsistent when read together with the other parts of the Prospectus or it does not provide, when read together with the other parts of the Prospectus, key information in order to aid investors when considering whether to invest in such Notes. A.2 Consent to the use of the Prospectus [Each Dealer and/or each further financial intermediary subsequently reselling or finally placing the Notes if and to the extent this is so expressed herein is entitled to use the Prospectus for the subsequent resale or final placement of the Notes during the offer period for the subsequent resale or final placement of the Notes from [ ] to [ ], provided however, that the Prospectus is still valid in accordance with Article 11(2) of the Luxembourg act relating to prospectuses for securities (Loi relative aux prospectus pour valeurs mobilières), as amended, which implements Directive 2003/71/EC of the European Parliament and of the Council of 1 To be deleted for the summary of an individual issue of Notes.

7 7 4 November 2003 (as amended). The Prospectus may only be delivered to potential investors together with all supplements published before such delivery. Any supplement to the Prospectus is available for viewing in electronic form on the website of the Luxembourg Stock Exchange ( and on the website of EVN AG ( When using the Prospectus, each Dealer and/or relevant further financial intermediary must make certain that it complies with all applicable laws and regulations in force in the respective jurisdictions. In the event of an offer being made by a Dealer and/or a further financial intermediary the Dealer and/or the further financial intermediary shall provide information to investors on the terms and conditions of the Notes at the time of that offer.] [Not applicable. No consent has been given.] Element Section B Issuer B.1 Legal and commercial name B.2 Domicile / Legal form / Legislation / Country of incorporation B.4b Known trends affecting the Issuer and the industries in which it operates EVN AG ("EVN"). EVN AG is an Austrian stock corporation (Aktiengesellschaft) incorporated under the laws of Austria in the Republic of Austria; its registered seat is the political municipality of Maria Enzersdorf in Lower Austria. Its head office is located at EVN Platz, 2344 Maria Enzersdorf, Republic of Austria. Energy demand is highly dependent on external factors such as weather conditions, technological developments and the general economic situation. In addition, adverse fluctuations of primary energy prices as well as disruptions or breakdowns of production facilities could have a material adverse effect on EVN Group's business. Ongoing high primary energy prices opposed to low forward prices for electricity provide difficult market conditions for EVN Group's business. Compliance with environmental requirements such as CO 2 emission allowances and changes in national and European regulatory regimes could affect EVN's earnings position. Energy policy in Europe has set focus on the increase of power generation from renewable energy sources. Strongly subsidised tariffs for electricity generated from renewable energy sources put further pressure on the profitability of thermal electricity generation. The activities of the EVN Group in the Central and Eastern Europe region which undergoes political, economic and social change create additional risk exposure. B.5 Description of the EVN is the parent company of the EVN Group, its shares

8 8 Group and the Issuer's position within the Group B.9 Profit forecast or estimate B.10 Nature of any qualifications in the audit report on historical financial information B.12 Selected historical key financial information Key figures Consolidated statement of operations being listed for trading on the Vienna Stock Exchange. As of 30 September 2016, financial statements of EVN Group included 67 fully consolidated companies, one joint operation included through proportionate consolidation and 17 companies consolidated at equity. Not applicable. No profit forecast or estimate is made. Not applicable. The audit reports do not include any qualifications. 2015/16 (audited) 2014/15 (audited) Revenue EUR million 2, ,135.8 EBITDA EUR million Results from operating activities (EBIT) EUR million Group net result EUR million Consolidated statement of financial position Total assets EUR million 6, ,501.2 Equity EUR million 2, ,590.1 Equity ratio % Net debt EUR million 1, ,230.9 Consolidated statement of cash flows Net cash flow from operating activities Acquisition of intangible assets and property, plant and equipment EUR million EUR million Material adverse change in the prospects of the issuer Significant change in the financial and trading position There has been no material adverse change in the prospects of EVN since 30 September Not applicable. There has been no significant change in the financial or trading position of EVN since 30 September B.13 Recent events Not applicable. There are no recent events particular to the Issuer which are to a material extent relevant to the evaluation of the Issuer s solvency.

9 9 B.14 See Element B.5. Statement of dependency upon other entities within the group Not applicable. EVN is not dependent upon other entities within the EVN Group. B.15 Principal activities The main objects of EVN are to generate, produce, procure, process, handle, transport and distribute energy and primary energy sources of all types and water, in accordance with the environmental protection and security of supply requirements, and also to market the by-products of energy production. Included in these objects are the uniform consolidation and the operation of plants owned by it and/or by third parties for the generation, production, procurement, handling, transport and distribution of energy, primary energy sources and water, the planning and implementation of projects for these facilities as well as their installation. Another business area is to utilize waste materials and all other kinds of materials and substances as well as to plan, build, operate and exploit commercially in every way the waste management installations owned by EVN or third parties. B.16 Controlling Persons 51% NÖ Landes-Beteiligungsholding GmbH, St. Pölten (via NÖ Holding GmbH a subsidiary of the province of Lower Austria) 32.0% EnBW Trust e.v., Karlsruhe, Germany B.17 Credit ratings of the Issuer or its debt securities Standard & Poor's Credit Market Services Italy srl ("S&P") 2 has assigned to EVN a long-term senior unsecured credit rating of BBB+ 3 (stable outlook) [and to the Notes a rating of ] and Moody's Investors Service Ltd. ("Moody's") 2 has assigned to EVN a long-term senior unsecured credit rating of A3 3 (stable outlook) [and to the Notes a rating of ]. Element Section C Securities C.1 Class and type of the securities, including any security identification number Class The Notes are unsecured. [Fixed Rate Notes The Notes bear interest at a fixed rate throughout the entire term of the Notes.] [Floating Rate Notes The Notes will bear interest at a rate determined [(and as 2 3 S&P and Moody's are established in the European Community and are registered under Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies, as amended (the "CRA Regulation"). The European Securities and Markets Authority publishes on its website ( a list of credit rating agencies registered in accordance with the CRA Regulation. That list is updated within five working days following the adoption of a decision under Article 16, 17 or 20 CRA Regulation. The European Commission shall publish that updated list in the Official Journal of the European Union within 30 days following such update. A credit rating assesses the creditworthiness of an entity and informs an investor therefore about the probability of the entity being able to redeem invested capital. It is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the rating agency at any time.

10 10 C.2 Currency of the securities issue C.5 Restrictions on the free transferability of the securities C.8 Rights attached to the securities (including ranking of the securities and limitations to those rights) adjusted for the applicable margin)] on the basis of a reference rate appearing on the agreed screen page of a commercial quotation service.] Security Identification Number(s) ISIN: [ ] Common Code: [ ] WKN: [ ] The Notes are issued in [ ]. Not applicable. The Notes are freely transferable. Status of the Notes The obligations under the Notes constitute unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer except for any obligations preferred by law. Negative pledge The Terms and Conditions of the Notes contain a negative pledge provision. [Early redemption in the case of fixed rate Notes The Notes can be redeemed prior to their stated maturity[, at the option of the Issuer,] for reasons of taxation[, for reasons of a change of control] or upon the occurrence of an event of default.] [Early redemption in the case of floating rate Notes The Notes can be redeemed prior to their stated maturity[, at the option of the Issuer,] for reasons of taxation[, for reasons of a change of control] or upon the occurrence of an event of default.] [Early Redemption at the option of the Issuer at specified redemption amount(s) The Notes can be redeemed at the option of the Issuer upon giving notice within the specified notice period to the Holders on a date or dates specified prior to such stated maturity and at the specified redemption amount(s) together with accrued interest to, but excluding, the relevant redemption date.] [Early redemption at the option of the Issuer at the principal amount of the respective Note in the case of floating rate Notes The Notes can be redeemed in whole or in part at the option of the Issuer for the first time on [ ] and on each interest payment date thereafter upon giving notice within the specified notice period to the Holders at the principal amount of the respective Note together with accrued interest to, but excluding, the relevant redemption date.]

11 11 C.9 See Element C.8. Interest rate Interest Early redemption for reasons of taxation Early Redemption of the Notes for reasons of taxation will be permitted, if as a result of any change in, or amendment to, the laws or regulations (including any amendment to, or change in, an official interpretation or application of such laws or regulations) of the Republic of Austria or any political subdivision or taxing authority thereto or therein affecting taxation or the obligation to pay duties of any kind, the Issuer will become obligated to pay additional amounts on the Notes. [Early redemption for reasons of a change of control Under certain conditions, the Notes provide for the option of the Holders to demand redemption of Notes at their principal amount together with accrued interest to, but excluding, the relevant redemption date in the event of a change of control in respect of EVN and the occurrence of a rating downgrade in respect of that change of control within the change of control period.] Early redemption in an event of default (including a cross default) The Notes provide for events of default (including a cross default) entitling Holders to demand immediate redemption of the Notes at their principal amount together with accrued interest to, but excluding, the relevant redemption date if the envisaged requirements therefor are fulfilled. [Resolutions of Holders In accordance with the German Act on Debt Securities of 2009 (Schuldverschreibungsgesetz "SchVG") the Terms and Conditions of the Notes contain provisions pursuant to which Holders may agree by majority resolution to amend the Terms and Conditions (with the consent of the Issuer) and to decide upon certain other matters regarding the Notes. Resolutions of Holders properly adopted, either in a meeting of Holders or by vote taken without a meeting in accordance with the Terms and Conditions, are binding upon all Holders. Resolutions providing for material amendments to the Terms and Conditions require a majority of not less than 75% of the votes cast. Resolutions regarding other amendments are passed by a simple majority of the votes cast.] [In the case of fixed rate Notes: [ ]% per annum.] [In the case of floating rate Notes: [EURIBOR][LIBOR for the specified currency] [[plus][minus] the [applicable] margin [of [ ]% per annum for each interest period]].[the applicable margin for the relevant interest period is as set out below.] [The minimum interest rate is [ ]% per annum.] [The maximum interest rate is [ ]% per annum.] [interest period: applicable margin (in % per annum): [ ] [ ]] [The issue date of the Notes.]

12 12 commencement date Interest payment dates Underlying on which the interest rate is based Maturity date including repayment procedures Indication of yield Name of representative of the Holders C.10 See Element C.9. Explanation how the value of the investment is affected in the case the securities have a derivative component in the interest payment C.11 Admission to trading on a regulated market or other equivalent market [ ]. [In the case of fixed rate Notes: Not applicable. The interest rate is not based on an underlying.] [In the case of floating rate Notes: [EURIBOR][LIBOR for the specified currency]] [In the case of fixed rate Notes: [ ].] [In the case of floating rate Notes: the interest payment date falling in [the redemption month].] Payment of principal or interest in respect of Notes shall be made to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System. [In the case of fixed rate Notes: [ ]% per annum.] [In the case of floating rate Notes: Not applicable. The yield cannot be calculated as of the issue date.] [Not applicable. There is no representative of the Holders.][In accordance with the SchVG the Terms and Conditions of the Notes provide that the Holders may by majority resolution appoint a common representative for all Holders (the "Holders' Representative"). The responsibilities and functions assigned to the Holders' Representative appointed by a resolution are determined by the SchVG and by majority resolutions of the Holders.] [[ ] has been designated in the Terms and Conditions of the Notes as representative for all Holders (the "Holders' Representative"). The duties, rights and functions of the Holders' Representative are determined by the relevant provisions of the Terms and Conditions.] Not applicable. The Notes do not have a derivative component. [Application has been made to list the Notes on the official list of the Luxembourg Stock Exchange and to admit to trading on the regulated market of the Luxemburg Stock Exchange.] [Not applicable. The Issuer does not intend to make any application for the Notes to be admitted to listing, trading and/or quotation by any competent authority, stock exchange and/or quotation system.]

13 13 Element Section D Risks D.2 Key information on the key risks that are specific to the Issuer Market and competitive risks: EVN Group is exposed to weather conditions or climate change that could adversely affect revenues of EVN Group. Demographic, political or technological factors could lead to a decline in demand. Development of market prices and market volatility and a suboptimal procurement strategy could lead to lower profit margins. Fluctuations in wind levels, water flows and sunshine hours can negatively influence the earnings from the generation business. Adverse developments for electricity and primary energy prices may pose the risk for recognition of impairment losses for the value of generation equipment. EVN Group is exposed to the risk of market saturation or limited resources for infrastructure projects. Financial risks: EVN Group is exposed to financial risks such as fluctuations in interest rates, foreign currency risks (transaction and translation risk), liquidity risks or rating downgrades. Market price risks may lead to a decline in the value of investments and listed strategic holdings. Investment risks, impairment risks and the risk that contingent liabilities are called could negatively influence the earnings situation of EVN Group. Strategy and planning risks: EVN Group is exposed to technological, planning and organizational risks. Operating risks: EVN Group is dependent upon attracting and retaining highly qualified management and skilled staff. Incorrect design and use of technical facilities or supply interruptions could negatively affect EVN Group s business operations. IT/security risks could lead to a data loss and hence negatively affect EVN Group. External risks: Political, legal and regulatory changes whether on a national or European level or in the countries where EVN Group operates, may adversely affect the business of EVN Group. Liberalisation of energy markets in countries where EVN Group is operating could adversely affect the competitive environment of EVN Group. EVN Group is exposed to the risk that required permits

14 14 and licenses are not issued or extended. Increased environmental requirements such as CO 2 emission allowances could adversely affect the results of operations and financial condition of EVN Group. General economic developments could negatively influence the business development of EVN Group. EVN Group is exposed to risks in foreign markets such as currency fluctuations, inflation, economic development or local market disruption. Force Majeure and sabotage could damage assets of EVN Group. D.3 Key information on the key risks that are specific to the securities Notes may not be a suitable investment for all investors Each potential investor in Notes must determine the suitability of that investment in light of his own circumstances. Liquidity Risk There can be no assurance that a liquid secondary market for the Notes will develop or, if it does develop, that it will continue. In an illiquid market, an investor might not be able to sell his Notes at any time at fair market prices. The possibility to sell the Notes might additionally be restricted by country specific reasons. Market Price Risk The Holder of Notes is exposed to the risk of an unfavourable development of market prices of his Notes, which materialises if the Holder sells the Notes prior to the final maturity of such Notes. Risk of Early Redemption A Holder of Notes is exposed to the risk that due to early redemption his investment will have a lower than expected yield. Also, the Holder may only be able to reinvest on less favourable conditions as compared to the original investment. [Currency Risk A Holder of Notes denominated in a foreign currency is exposed to the risk that changes in currency exchange rates may affect the yield of such Notes.] [Fixed Rate Notes A Holder of Fixed Rate Notes is exposed to the risk that the price of such Notes falls as a result of changes in the market interest rate.] [Floating Rate Notes A Holder of Floating Rate Notes is exposed to the risk of fluctuating interest rate levels and uncertain interest income. Fluctuating interest rate levels make it impossible to determine the profitability of Floating Rate Notes in advance.] [Resolutions of Holders Since the Terms and Conditions of the Notes provide for resolutions of Holders, either to be passed in a meeting of Holders or by vote taken without a meeting, a Holder is subject to the risk of being outvoted by a majority resolution of the Holders. As resolutions properly adopted are binding

15 15 on all Holders, certain rights of such Holder against the Issuer under the Terms and Conditions may be amended or reduced or even cancelled.] [Holders' Representative Since the Terms and Conditions of the Notes provide for the appointment of a Holders' Representative, it is possible that a Holder may be deprived of its individual right to pursue and enforce its rights under the Terms and Conditions against the Issuer, such right passing to the Holders' Representative who is then exclusively responsible to claim and enforce the rights of all Holders.] Risk regarding the Austrian Notes Trustee Act Pursuant to the Austrian Notes Trustee Act (Teilschuldverschreibungskuratorengesetz) a trustee (Kurator) may be appointed by an Austrian court, on request of any interested party (e.g. a Noteholder) or on the initiative of the competent court, to look after the common interests of the Noteholders in matters of their collective rights. Where a trustee represents the interests and exercises the rights of Noteholders, his actions may conflict with or otherwise adversely affect the interests of individual or all Noteholders. Element Section E Offer E.2b Reasons for the offer and use of proceeds E.3 A description of the terms and conditions of the offer E.4 Any interest that is material to the issue/offer including conflicting interests E.7 Estimated expenses charged to the investor by the issuer or the offeror [EVN plans to use the net proceeds for general financing purposes.] [ ] [Not applicable. No public offer is being made or contemplated.] The total amount of the [offer] [issue] is [ ]. [The offer period commences on [ ] and ends on [ ].] [The minimum subscription amount is [ ].] [The maximum subscription amount is [ ].] [The expected price at which the Notes will be offered is [ ].] [ ] [ ] [ ]

16 16 GERMAN TRANSLATION OF THE SUMMARY Zusammenfassungen sind zusammengesetzt aus Offenlegungspflichten, die als "Punkte" bekannt sind. Diese Punkte sind in die Abschnitte A E (A.1 E.7) nummeriert. Diese Zusammenfassung (die "Zusammenfassung") enthält alle Punkte, die in eine Zusammenfassung für diese Art von Schuldverschreibungen und die Emittentin aufzunehmen sind. Da einige Punkte nicht zu berücksichtigen sind, kann die Nummerierung Lücken aufweisen. Auch wenn ein Punkt wegen der Art der Schuldverschreibungen und der Emittenten in die Zusammenfassung aufgenommen werden muss, ist es möglich, dass bezüglich dieses Punktes keine relevante Information gegeben werden kann. In einem solchen Fall ist in der Zusammenfassung eine kurze Beschreibung des Punktes unter Bezeichnung als "nicht anwendbar" enthalten. [Die Zusammenfassung enthält durch eckige Klammern oder Kursivschreibung gekennzeichnete Optionen und Leerstellen bezüglich der Schuldverschreibungen, die unter dem Programm begeben werden können. Die Zusammenfassung der einzelnen Emission der Schuldverschreibungen wird die nur für diese Emission von Schuldverschreibungen relevanten Optionen, wie durch die Endgültigen Bedingungen festgelegt, und die ausgelassenen, durch die Endgültigen Bedingungen vervollständigten Leerstellen beinhalten.] 4 Punkt Abschnitt A Einleitung und Warnhinweise A.1 Warnhinweise Warnhinweis, dass die Zusammenfassung als Einleitung zum Prospekt verstanden werden sollte; sich der Anleger bei jeder Entscheidung in die Schuldverschreibungen zu investieren, auf den Prospekt als Ganzen stützen sollte; ein Anleger, der wegen der in dem Prospekt enthaltenen Angaben Klage einreichen will, nach den nationalen Rechtsvorschriften seines Mitgliedstaats möglicherweise für die Übersetzung des Prospekts aufkommen muss, bevor das Verfahren eingeleitet werden kann; und zivilrechtlich nur die Emittentin haftet, die die Zusammenfassung samt etwaiger Übersetzungen vorgelegt und übermittelt hat, und dies auch nur für den Fall, dass die Zusammenfassung verglichen mit den anderen Teilen des Prospekts irreführend, unrichtig oder inkohärent ist oder verglichen mit den anderen Teilen des Prospekts wesentliche Angaben, die in Bezug auf Anlagen in die betreffenden Wertpapiere für die Anleger eine Entscheidungshilfe darstellen, vermissen lassen. A.2 Zustimmung zur Verwendung des Prospektes [Jeder Platzeur und/oder jeder weitere Finanzintermediär, der die emittierten Schuldverschreibungen nachfolgend weiter verkauft oder endgültig platziert, ist sofern und soweit dies hierin so erklärt wird berechtigt, den Prospekt für den späteren Weiterverkauf oder die endgültige Platzierung der Schuldverschreibungen während der Angebotsperiode für den späteren Weiterverkauf oder die endgültige Platzierung vom [ ] bis [ ] zu verwenden, vorausgesetzt jedoch, dass der Prospekt in Übereinstimmung mit Artikel 11 Absatz 2 des geänderten Luxemburger Wertpapierprospektgesetzes (Loi relative aux prospectus 4 Für die Zusammenfassung einer einzelnen Emission von Schuldverschreibungen zu löschen.

17 17 pour valeurs mobilières), in seiner jeweils gültigen Fassung, welches die geänderte Richtlinie 2003/71/EG des Europäischen Parlaments und des Rates vom 4. November 2003, in ihrer jeweils gültigen Fassung, umsetzt, noch gültig ist. Der Prospekt darf potentiellen Investoren nur zusammen mit sämtlichen bis zur Übergabe veröffentlichten Nachträgen übergeben werden. Jeder Nachtrag zum Prospekt kann in elektronischer Form auf der Internetseite der Wertpapierbörse Luxemburg ( und der Internetseite der EVN AG ( eingesehen werden. Bei der Nutzung des Prospektes hat jeder Platzeur und/oder jeweiliger weiterer Finanzintermediär sicherzustellen, dass er alle anwendbaren, in den jeweiligen Jurisdiktionen geltenden Gesetze und Rechtsvorschriften beachtet. Für den Fall, dass ein Platzeur und/oder weiterer Finanzintermediär ein Angebot macht, informiert dieser Platzeur und/oder weiterer Finanzintermediär die Anleger zum Zeitpunkt der Angebotsvorlage über die Angebotsbedingungen der Schuldverschreibungen.] [Nicht anwendbar. Die Zustimmung wurde nicht erteilt.] Punkt Abschnitt B Emittentin B.1 Gesetzliche und kommerzielle Bezeichnung B.2 Sitz / Rechtsform / geltendes Recht / Land der Gründung B.4b Bereits bekannte Trends, die sich auf den Emittenten und die Branchen, in denen er tätig ist, auswirken EVN AG ("EVN"). EVN AG ist eine Aktiengesellschaft nach österreichischem Recht. Ihr Hauptsitz befindet sich in Maria Enzersdorf, Niederösterreich. Die Geschäftsadresse lautet EVN Platz, 2344 Maria Enzersdorf, Österreich. Die Energienachfrage ist sehr stark von äußeren Einflüssen, wie insbesondere dem Wetter, technologischen Entwicklungen und der allgemeinen Wirtschaftslage, abhängig. Zudem können ungünstige Schwankungen bei Beschaffungspreisen von Primärenergieträgern und Unterbrechungen oder Zusammenbrüche von Produktionsanlagen erhebliche negative Auswirkungen auf das Geschäft der EVN Gruppe haben. Zusätzlich stellen hohe Preise für Primärenergie bei gleichzeitig niedrigen Strompreisen schwierige Rahmenbedingungen für das Geschäftsmodell der EVN Gruppe dar. Die Erfüllung von Umweltauflagen wie z.b. CO 2 - Emissionensrechten und Änderungen der Gesetze und Vorschriften auf nationaler und europäischer Ebene können die Vermögens-, Finanz- und Ertragslage der EVN Gruppe negativ beeinflussen. Die europäische Energiepolitik hat den Schwerpunkt auf eine

18 18 B.5 Beschreibung der Gruppe und der Stellung des Emittenten innerhalb dieser Gruppe B.9 Gewinnprognosen oder -schätzungen B.10 Art etwaiger Beschränkungen im Bestätigungsvermerk zu den historischen Finanzinformationen verstärkte Stromerzeugung aus erneuerbarer Energie gesetzt. Stark subventionierte Tarife für Strom aus erneuerbaren Energien setzen die Wirtschaftlichkeit der thermischen Stromproduktion unter Druck. Die Tätigkeit der EVN Gruppe in der Region Mittel- und Osteuropa, die derzeit einem politischen, wirtschaftlichen und sozialen Wandel unterworfen ist, ist mit zusätzlichem Risiko behaftet. EVN ist die Muttergesellschaft der EVN Gruppe. Die Aktien der EVN notieren an der Wiener Börse. Zum 30. September 2016 wurden 67 vollkonsolidierte Unternehmen, ein als Joint Operation anteiliges Unternehmen sowie 17 at Equity einbezogene Unternehmen in den Konzernabschluss der EVN Gruppe einbezogen. Nicht anwendbar. Es liegen keine Gewinnprognosen oder -schätzungen vor. Nicht anwendbar. Die Bestätigungsvermerke enthalten keine Beschränkungen. B.12 Ausgewählte wesentliche historische Finanzinformationen Wesentliche Kennzahlen Konzern-Gewinn-und-Verlust- Rechnung 2015/16 (geprüft) 2014/15 (geprüft) Umsatzerlöse EUR Mio , ,8 EBITDA EUR Mio. 604,4 583,2 Operatives Ergebnis (EBIT) EUR Mio. 260,4 268,2 Konzernergebnis EUR Mio. 156,4 148,1 Konzern-Bilanz Summe Aktiva EUR Mio , ,2 Eigenkapital EUR Mio , ,1 Eigenkapitalquote % 42,3 39,8 Nettoverschuldung EUR Mio , ,9 Konzern-Geldflussrechnung Cash Flow aus dem operativen Bereich EUR Mio. Auszahlungen für Investitionen in immaterielle Vermögenswerte und EUR Mio. Sachanlagen 463,0 478,3 315,9 322,7 Wesentliche Verschlechterung der Es gab keine wesentliche Verschlechterung in den Aussichten der EVN seit dem 30. September 2016.

19 19 Aussichten des Emittenten Wesentliche Veränderungen bei Finanzlage oder Handelsposition Nicht anwendbar. Es gab keine wesentliche Veränderung der Finanzlage und Handelsposition der EVN seit 30. September B.13 Letzte Ereignisse Nicht anwendbar. Es gibt keine Ereignisse aus der jüngsten Zeit betreffend die Emittentin, die wesentlich für die Beurteilung der Zahlungsfähigkeit der Emittentin sind. B.14 Siehe Punkt B.5. Angabe zur Abhängigkeit von anderen Unternehmen innerhalb der Gruppe Nicht anwendbar. Die EVN ist nicht von anderen Unternehmen innerhalb der EVN Gruppe abhängig. B.15 Haupttätigkeiten Gegenstand des Unternehmens ist die Erzeugung, die Gewinnung, die Beschaffung, die Verarbeitung, die Behandlung, der Transport und der Vertrieb von Energie und Energieträgern jeglicher Art und von Wasser unter Beachtung der Erfordernisse des Umweltschutzes und der Versorgungssicherheit sowie die Vermarktung von Nebenprodukten der Energieerzeugung. Hierzu zählen auch die einheitliche Zusammenfassung und der Betrieb von eigenen und fremden Erzeugungs-, Gewinnungs-, Beschaffungs-, Verarbeitungs-, Behandlungs-, Transport-, Vertriebs- und Verbrauchsanlagen für Energie, Energieträger und Wasser, die Verfassung und Ausführung von Projekten für solche Anlagen sowie deren Installation. Die Tätigkeiten der EVN umfassen auch die Verwertung von Abfällen, Materialen und Stoffen jeglicher Art sowie die Projektierung, die Errichtung, der Betrieb und jede Art der gewerblichen Nutzung von eigenen und fremden Verwertungseinrichtungen. B.16 Beherrschungsverhältnis B.17 Kreditratings des Emittenten oder seiner Schuldtitel 51% NÖ Landes-Beteiligungsholding GmbH, St. Pölten (via NÖ Holding GmbH eine Tochtergesellschaft des Landes Niederösterreich) 32,0% EnBW Trust e.v., Karlsruhe, Germany Standard & Poor's Credit Market Services Italy srl ("S&P") 5 hat die EVN mit dem Long-Term Senior Unsecured Credit Rating BBB+ 6 (stabiler Ausblick) [und die Schuldverschreibungen mit ] bewertet und Moody's Investors Service Ltd. ("Moody's") 5 hat das Long-Term Senior Unsecured Credit Rating der EVN mit A3 6 (stabiler Ausblick) [und das Rating der Schuldverschreibungen mit ] 5 6 S&P und Moody's haben ihren Sitz in der Europäischen Gemeinschaft und sind gemäß der Verordnung (EG) Nr. 1060/2009 des Europäischen Parlaments und des Rates vom 16. September 2009 über Ratingagenturen in der jeweils geltenden Fassung (die "Ratingagentur-Verordnung") registriert. Die Europäische Wertpapier und Marktaufsichtsbehörde veröffentlicht auf ihrer Webseite ( ein Verzeichnis der nach der Ratingagentur-Verordnung registrierten Ratingagenturen. Dieses Verzeichnis wird innerhalb von fünf Werktagen nach Annahme eines Beschlusses gemäß Artikel 16, 17 oder 20 der Ratingagentur-Verordnung aktualisiert. Die Europäische Kommission veröffentlicht das aktualisierte Verzeichnis im Amtsblatt der Europäischen Union innerhalb von 30 Tagen nach der Aktualisierung. Ein Kreditrating ist eine Einschätzung der Kreditwürdigkeit einer Rechtsperson und informiert den Anleger daher über die Wahrscheinlichkeit mit der die Rechtsperson in der Lage ist, angelegtes Kapital zurückzuzahlen. Es ist keine Empfehlung Wertpapiere zu kaufen, zu verkaufen oder zu halten und kann jederzeit durch die Ratingagentur geändert oder zurückgenommen werden.

20 20 bestätigt. Punkt Abschnitt C Wertpapiere C.1 Gattung und Art der Wertpapiere, einschließlich jeder Wertpapierkennung C.2 Währung der Wertpapieremission C.5 Beschränkungen für die freie Übertragbarkeit der Wertpapiere C.8 Rechte, die mit den Wertpapieren verbunden sind (einschließlich des Rangs der Wertpapiere und Beschränkungen dieser Rechte) Gattung Die Schuldverschreibungen sind nicht besichert. [Fest verzinsliche Schuldverschreibungen Die Schuldverschreibungen werden mit einem festen Zinssatz über die gesamte Laufzeit der Schuldverschreibungen verzinst.] [Variabel verzinsliche Schuldverschreibungen Die Schuldverschreibungen werden mit einem Zinssatz verzinst [(angepasst um die anwendbare Marge)], der auf der Basis eines Referenzzinssatzes bestimmt wird, der auf der vereinbarten Bildschirmseite eines Kursdienstes angezeigt wird.] Wertpapierkennung(en) ISIN: [ ] Common Code: [ ] WKN: [ ] Die Schuldverschreibungen werden in [ ] begeben. Nicht anwendbar. Die Schuldverschreibungen sind frei übertragbar. Status der Schuldverschreibungen Die Schuldverschreibungen begründen nicht besicherte und nicht nachrangige Verbindlichkeiten der Emittentin, die untereinander und mit allen anderen nicht besicherten und nicht nachrangigen Verbindlichkeiten der Emittentin gleichrangig sind mit Ausnahme von Verbindlichkeiten, die nach geltenden Rechtsvorschriften vorrangig sind. Negativerklärung Die Bedingungen der Schuldverschreibungen enthalten eine Negativverpflichtung. [Vorzeitige Rückzahlung im Fall von festverzinslichen Schuldverschreibungen Die Schuldverschreibungen sind [nach Wahl der Emittentin] vor Ablauf ihrer festgelegten Laufzeit aus steuerlichen Gründen[, bei Eintritt eines Kontrollwechsels] oder bei Eintritt eines Kündigungsereignisses rückzahlbar.] [Vorzeitige Rückzahlung im Fall von variabel verzinslichen Schuldverschreibungen Die Schuldverschreibungen sind [nach Wahl der Emittentin] vor Ablauf ihrer festgelegten Laufzeit aus steuerlichen Gründen[, bei Eintritt eines Kontrollwechsels] oder bei Eintritt

21 21 eines Kündigungsereignisses rückzahlbar.] [Vorzeitige Rückzahlung nach Wahl der Emittentin zu dem(n) festgelegten Rückzahlungsbetrag(beträgen) Die Schuldverschreibungen sind nach Wahl der Emittentin unter Einhaltung der festgelegten Kündigungsfrist durch Kündigung gegenüber den Gläubigern zu dem(n) festgelegten Zeitpunkt(en) vor der angegebenen Fälligkeit und zu dem(n) festgelegten Rückzahlungsbetrag(beträgen) nebst etwaigen bis zum jeweiligen Rückzahlungstag (ausschließlich) aufgelaufener Zinsen rückzahlbar.] [Vorzeitige Rückzahlung nach Wahl der Emittentin zum Nennbetrag der jeweiligen Schuldverschreibung im Fall von variabel verzinslichen Schuldverschreibungen Die Schuldverschreibungen sind nach Wahl der Emittentin insgesamt oder teilweise erstmals am [ ] und danach an jedem darauf folgenden Zinszahlungstag unter Einhaltung der festgelegten Kündigungsfrist durch Kündigung gegenüber den Gläubigern zum Nennbetrag der jeweiligen Schuldverschreibung nebst etwaigen bis zum jeweiligen Rückzahlungstag (ausschließlich) aufgelaufener Zinsen rückzahlbar.] Vorzeitige Rückzahlung aus steuerlichen Gründen Die vorzeitige Rückzahlung der Schuldverschreibungen aus steuerlichen Gründen ist zulässig, falls als Folge einer Änderung oder Ergänzung der Gesetze oder Vorschriften (einschließlich einer Änderung oder Ergänzung der Anwendung oder der offiziellen Auslegung dieser Gesetze oder Vorschriften) der Republik Österreich oder deren politischen Untergliederungen oder Steuerbehörden die Emittentin zur Zahlung zusätzlicher Beträge auf die Schuldverschreibungen verpflichtet ist, wie im Einzelnen in den Anleihebedingungen der Schuldverschreibungen dargelegt. [Vorzeitige Rückzahlung bei Eintritt eines Kontrollwechsels Unter bestimmten Bedingungen gewähren die Schuldverschreibungen den Gläubigern das Recht, die Rückzahlung ihrer Schuldverschreibungen zum Nennbetrag nebst etwaigen bis zum jeweiligen Rückzahlungstag (ausschließlich) aufgelaufener Zinsen zu verlangen, sofern ein Kontrollwechsel bei der EVN eingetreten ist und es innerhalb des Kontrollwechselzeitraums aufgrund dessen zu einer Absenkung des Ratings kommt.] Vorzeitige Rückzahlung bei Eintritt eines Kündigungsereignisses (einschließlich Drittverzug) Die Schuldverschreibungen sehen Kündigungsgründe (einschließlich einer Kündigung im Fall eines Drittverzugs (Cross-Default)) vor, die die Gläubiger berechtigen, die sofortige Rückzahlung ihrer Schuldverschreibungen zum Nennbetrag nebst etwaigen bis zum jeweiligen Rückzahlungstag (ausschließlich) aufgelaufener Zinsen zu verlangen, sofern die dafür vorgesehenen Voraussetzungen erfüllt sind.

22 22 C.9 Siehe Punkt C.8. Zinssatz Verzinsungsbeginn Zinszahlungstage Basiswert, auf dem der Zinssatz basiert Fälligkeitstermin einschließlich Rückzahlungsverfahren [Gläubigerbeschlüsse In Übereinstimmung mit dem Schuldverschreibungsgesetz 2009 ("SchVG") sehen die Anleihebedingungen der Schuldverschreibungen vor, dass die Gläubiger durch Mehrheitsbeschluss (mit Zustimmung der Emittentin) Änderungen der Anleihebedingungen zustimmen und gewisse sonstige Maßnahmen in Bezug auf die Schuldverschreibungen beschließen können. Beschlüsse der Gläubiger können nach Maßgabe der Anleihebedingungen entweder in einer Gläubigerversammlung oder im Wege der Abstimmung ohne Versammlung gefasst werden und sind für alle Gläubiger verbindlich. Beschlüsse der Gläubiger, durch welche der wesentliche Inhalt der Anleihebedingungen geändert wird, bedürfen einer Mehrheit von mindestens 75% der an der Abstimmung teilnehmenden Stimmrechte. Sonstige Beschlüsse bedürfen der einfachen Mehrheit der an der Abstimmung teilnehmenden Stimmrechte.] [Im Fall von fest verzinslichen Schuldverschreibungen: [ ]% per annum.] [Im Fall von variabel verzinslichen Schuldverschreibungen: der [EURIBOR][LIBOR für die festgelegte Währung] [[zuzüglich][abzüglich] der [anwendbaren] Marge [in Höhe von [ ]% per annum für jede Zinsperiode]]. [Die anwendbare Marge für die jeweilige Zinsperiode ist wie nachfolgend aufgeführt.] [Der Mindestzinssatz beträgt [ ]% per annum.] [Der Höchstzinssatz beträgt [ ]% per annum.] [Zinsperiode: anwendbare Marge (in % per annum): [ ] [ ]] [Begebungstag der Schuldverschreibungen.] [ ]. [Im Fall von fest verzinslichen Schuldverschreibungen: Nicht anwendbar. Der Zinssatz basiert nicht auf einem Basiswert.] [Im Fall von variabel verzinslichen Schuldverschreibungen: [EURIBOR][LIBOR für die festgelegte Währung]] [Im Fall von fest verzinslichen Schuldverschreibungen: [ ].] [Im Fall von variabel verzinslichen Schuldverschreibungen: am in den [Rückzahlungsmonat] fallenden Zinszahlungstag.] Zahlungen auf Kapital oder Zinsen in Bezug auf die Schuldverschreibungen erfolgen an das Clearing System oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearing Systems.

23 23 Rendite Name des Vertreters der Schuldtitelinhaber C.10 Siehe Punkt C.9. Erläuterung, wie der Wert der Anlage beeinflusst wird, falls die Wertpapiere eine derivative Komponente bei der Zinszahlung aufweisen C.11 Antrag auf Zulassung zum Handel, um die Wertpapiere an einem geregelten Markt oder anderen gleichwertigen Märkten zu platzieren [Im Fall von fest verzinslichen Schuldverschreibungen: [ ]% per annum.] [Im Fall von variabel verzinslichen Schuldverschreibungen: Nicht anwendbar. Die Rendite der Schuldverschreibungen kann zum Begebungstag nicht berechnet werden.] [Nicht anwendbar. Es gibt keinen gemeinsamen Vertreter der Gläubiger.] [In Übereinstimmung mit dem SchVG sehen die Anleihebedingungen der Schuldverschreibungen vor, dass die Gläubiger durch Beschluss einen gemeinsamen Vertreter bestellen können. Die Aufgaben und Befugnisse des durch Beschluss bestellten gemeinsamen Vertreters bestimmen sich nach dem SchVG sowie den Mehrheitsbeschlüssen der Gläubiger.] [[ ] wird in den Anleihebedingungen der Schuldverschreibungen zum gemeinsamen Vertreter der Gläubiger bestellt. Die Aufgaben und Befugnisse des gemeinsamen Vertreters bestimmen sich nach den Anleihebedingungen.] Nicht anwendbar. Die Wertpapiere weisen keine derivative Komponente auf. [Für die Schuldverschreibungen ist ein Antrag auf Notierung in der offiziellen Liste und auf Zulassung zum Börsenhandel im regulierten Markt der Luxemburger Wertpapierbörse gestellt worden.] [Nicht anwendbar. Die Emittentin beabsichtigt nicht, bei einer Behörde, einer Börse und/oder einem Notierungssystem einen Antrag auf Zulassung der Schuldverschreibungen zum Handel und/oder zu deren Notierung zu stellen.] Punkt Abschnitt D Risiken D.2 Zentrale Angaben zu den zentralen Risiken, die dem Emittenten eigen sind Markt- und Wettbewerbsrisiken: Die EVN Gruppe ist witterungs- bzw. klimawandelbedingten Einflüssen ausgesetzt, die die Umsatzerlöse der EVN Gruppe negativ beeinträchtigen könnten. Demographische, politische oder technologische Einflüsse könnten zu einem Nachfragerückgang führen. Die Marktpreisentwicklung und -volatilität sowie eine suboptimale Beschaffungsstrategie können zu niedrigeren Deckungsbeiträgen führen. Schwankungen bei Windaufkommen, Wasserführung und Sonnenstunden können sich nachteilig auf das Ergebnis im Erzeugungsbereich auswirken.

24 24 Nachteilige Entwicklungen bei Strom- und Primärenergiepreisen stellen ein Risiko für einen Wertberichtigungsbedarf der Werthaltigkeit der Erzeugungsanlagen dar. Die EVN Gruppe ist dem Risiko der Marktsättigung bzw. eingeschränkter Ressourcen für Infrastrukturprojekte ausgesetzt. Finanzrisiken: Die EVN Gruppe ist Finanzrisiken wie z.b. Schwankungen von Zinssätzen, Wechselkursrisiken (Transaktions- und Translationsrisken), Liquiditätsrisiken oder Rating-Herabstufungen ausgesetzt. Preis- bzw. Kursänderungsrisiken könnten zu einem Kurs- bzw. Wertverlust bei Veranlagungspositionen und börsennotierten strategischen Beteiligungen führen. Beteiligungsrisiken, Wertminderungs-/Impairment- Risiken und das Risiko des Fälligwerdens von Eventualverbindlichkeiten können das Ergebnis der EVN Gruppe negativ beeinflussen. Strategie- und Planungsrisiken: Die EVN Gruppe ist Technologie-, Planungs- und organisatorischen Risiken ausgesetzt. Betriebsrisiken: Die EVN Gruppe ist darauf angewiesen, hochqualifiziertes Personal anzuwerben und zu halten. Falsche Auslegung und Verwendung der technischen Anlagen oder Versorgungsunterbrechungen könnten negativen Einfluss auf den Geschäftsverlauf der EVN Gruppe nehmen. IT/Sicherheitsrisiken könnten zu einem Datenverlust führen und dadurch die EVN Gruppe negativ beeinflussen. Umfeldrisiken: Änderungen des politischen, rechtlichen und regulatorischen Umfelds auf nationaler oder auf EU- Ebene oder in jenen Ländern, in denen die EVN Gruppe aktiv ist, könnten die Geschäftstätigkeit der EVN Gruppe negativ beeinflussen. Die Liberalisierung der Energiemärkte, in denen die EVN Gruppe tätig ist, könnte die Wettbewerbsbedingungen für die EVN Gruppe negativ beeinträchtigen. Die EVN Gruppe ist dem Risiko ausgesetzt, dass erforderliche Genehmigungen oder Lizenzen nicht ausgestellt oder nicht verlängert werden. Gesteigerte umweltpolitische Anforderungen wie z.b. CO 2- Emissionsrechte könnten negativen Einfluss auf die Finanz- und Ertragslage der EVN Gruppe haben.

25 25 Allgemeine konjunkturelle Entwicklungen können die Geschäftsentwicklung der EVN Gruppe negativ beeinflussen. Die EVN Gruppe ist Risiken auf ausländischen Märkten ausgesetzt, wie z.b. Währungsschwankungen, Inflation, wirtschaftlichen Entwicklungen oder der Störung oder dem Zusammenbruch lokaler Märkte. Höhere Gewalt oder Sabotage könnte Betriebsvermögen der EVN Gruppe beschädigen. D.3 Zentrale Angaben zu den zentralen Risiken, die den Wertpapieren eigen sind Schuldverschreibungen als nicht für alle Investoren geeignetes Investment Jeder potentielle Anleger in Schuldverschreibungen muss die Geeignetheit dieser Investition unter Berücksichtigung seiner eigenen Lebensverhältnisse einschätzen. Liquiditätsrisiko Es besteht keine Gewissheit, dass ein liquider Sekundärmarkt für Schuldverschreibungen entstehen wird oder, sofern er entsteht, dass er fortbestehen wird. In einem illiquiden Markt könnte es sein, dass ein Anleger seine Schuldverschreibungen nicht jederzeit zu angemessenen Marktpreisen veräußern kann. Die Möglichkeit, Schuldverschreibungen zu veräußern, könnte darüber hinaus aus landesspezifischen Gründen eingeschränkt sein. Marktpreisrisiko Der Gläubiger von Schuldverschreibungen ist dem Risiko nachteiliger Entwicklungen der Marktpreise seiner Schuldverschreibungen ausgesetzt, welches sich verwirklichen kann, wenn der Gläubiger seine Schuldverschreibungen vor Endfälligkeit veräußert. Risiko vorzeitiger Rückzahlung Der Gläubiger von Schuldverschreibungen ist dem Risiko ausgesetzt, dass infolge der vorzeitigen Rückzahlung seine Kapitalanlage eine geringere Rendite als erwartet aufweist. Außerdem könnte es sein, dass der Gläubiger eine Wiederanlage nur zu schlechteren Bedingungen als denjenigen des ursprünglichen Investments tätigen kann. [Währungsrisiko Der Gläubiger von Schuldverschreibungen, die auf eine fremde Währung lauten, ist dem Risiko ausgesetzt, dass Wechselkursschwankungen die Rendite solcher Schuldverschreibungen beeinflussen können.] [Festverzinsliche Schuldverschreibungen Der Gläubiger festverzinslicher Schuldverschreibungen ist dem Risiko ausgesetzt, dass der Kurs solcher Schuldverschreibungen infolge von Veränderungen des aktuellen Marktzinssatzes fällt.] [Variabel verzinsliche Schuldverschreibungen Der Gläubiger variabel verzinslicher Schuldverschreibungen ist dem Risiko eines schwankenden Zinsniveaus und ungewisser Zinserträge ausgesetzt. Ein schwankendes

26 26 Zinsniveau macht es unmöglich, die Rendite von variabel verzinslichen Schuldverschreibungen im Voraus zu bestimmen.] [Gläubigerbeschlüsse Da die Anleihebedingungen der Schuldverschreibungen Beschlüsse der Gläubiger vorsehen, die entweder im Rahmen einer Gläubigerversammlung oder durch Abstimmung ohne Versammlung gefasst werden, ist ein Gläubiger dem Risiko ausgesetzt, durch Mehrheitsbeschluss der Gläubiger überstimmt zu werden. Da ein solcher Mehrheitsbeschluss für alle Gläubiger verbindlich ist, werden unter Umständen bestimmte Rechte des Gläubigers gegen die Emittentin aus den Anleihebedingungen geändert, eingeschränkt oder sogar aufgehoben.] [Gemeinsamer Vertreter Da die Anleihebedingungen der Schuldverschreibungen die Bestellung eines gemeinsamen Vertreters vorsehen, ist es möglich, dass ein Gläubiger seines persönlichen Rechts zur Geltendmachung und Durchsetzung seiner Rechte aus den Anleihebedingungen gegenüber der Emittentin beraubt wird und dieses Recht auf den gemeinsamen Vertreter übergeht, der sodann allein verantwortlich ist, die Rechte sämtlicher Gläubiger geltend zu machen und durchzusetzen.] Risiko bzgl. Teilschuldverschreibungskuratorengesetz Gemäß des österreichischen Teilschuldverschreibungskuratorengesetzes kann durch ein österreichisches Gericht auf Verlangen eines Beteiligten (z.b. eines Anleihegläubigers) oder auf Betreiben des zuständigen Gerichts ein Kurator bestellt werden, um sich um die gemeinsamen Interessen der Anleihegläubiger hinsichtlich ihrer gemeinschaftlichen Rechte zu kümmern. Sofern ein Kurator die Interessen der Anleihegläubiger vertritt und ausübt, könnten seine Handlungen im Widerspruch zu den Interessen einzelner oder aller Anleihegläubiger stehen oder diese auf andere Art negativ beeinflussen. Punkt Abschnitt E Angebot E.2b Gründe für das Angebot und Zweckbestimmung der Erlöse E.3 Beschreibung der Angebotskonditionen [EVN beabsichtigt, den Nettoerlös für allgemeine Finanzierungszwecke zu verwenden.] [ ] [Nicht anwendbar. Ein öffentliches Angebot findet nicht statt und wird nicht in Betracht gezogen.] Die Gesamtsumme [der Emission] [des Angebots] beträgt [ ]. [Die Angebotsfrist beginnt am [ ] und endet am [ ].] [Der Mindestzeichnungsbetrag beträgt [ ].] [Der Höchstzeichnungsbetrag beträgt [ ].] [Der Preis, zu dem die Schuldverschreibungen

27 27 E.4 Beschreibung aller für die Emission/das Angebot wesentlichen, auch kollidierenden Interessen E.7 Schätzung der Ausgaben, die dem Anleger vom Emittenten oder Anbieter in Rechnung gestellt werden voraussichtlich angeboten werden, ist [ ].] [ ] [ ] [ ]

28 28 RISK FACTORS The following is a disclosure of the principal risk factors which are material to the Issuer and the Notes issued under the Programme in order to assess the market risk associated with the Issuer and the Notes. Prospective investors should consider these risk factors before deciding to purchase Notes issued under the Programme. Prospective investors should consider all information provided in this Prospectus and consult with their own professional advisers (including their financial, accounting, legal and tax advisers) if they consider it necessary. In addition, investors should be aware that the risks described may combine and thus intensify one another. Under the circumstances described below prospective investors may lose the value of their entire investment or part of it. The occurrence of one or more risks may have a material adverse effect on EVN's business, financial position, profit, and cash flows. The order in which the risks are described below neither indicates the probability of their occurrence nor the gravity of significance of the individual risks nor the scope of their financial consequences. Additional risks which EVN is not currently aware of could also affect the business operations of EVN and adversely affect EVN's business activities and financial condition and results of operations and the ability of EVN to fulfil its obligations under the Notes. Risk Factors regarding EVN Group Market and competitive risks: Energy trading and sales EVN s revenues can be negatively affected by a decline in demand due to weather conditions or climate change, demographic, political or technological factors or the loss of customers and sales volumes for image-related or competitive reasons. In addition, the development of market prices and market volatility, a suboptimal procurement strategy and declining margins can lead to lower profit margins in the energy business. Generation/supply Production that is increasingly decentralised and cannot be precisely planned as well as fluctuations in wind levels, water flows, sunshine hours and weather conditions can have a negative influence on earnings from the generation business (price and volume effects). The economic viability and intrinsic value of generation equipment is dependent to a significant degree on electricity and primary energy prices, the respective efficiencies, energy sector framework conditions and locations. Adverse developments can therefore lead to the recognition of an impairment loss. The creation of or addition to provisions for long-term (procurement) contracts may also be necessary. In spite of the measures implemented to date, these types of risks still exist for thermal generation plants, hydropower plants and generation plants that use renewable energies. Environment EVN is exposed to risks in the environmental services business from possible fluctuations in the demand, volume and/or costs of drinking water supplies, wastewater treatment systems and thermal waste utilisation facilities. The project volume in this business can also be negatively affected by market saturation or limited resources for infrastructure projects as well as non-inclusion in or the failure to win tenders. EVN is also exposed to various risks in connection with suppliers and the realisation of projects, which include the defective performance or non-performance of contractually agreed obligations. This may lead to rising project costs or delays in the completion of contracted services. While hedging instruments such as forward and future contracts, long term commercialisation of power plant capacities and options and swaps are used as a means of off-setting price risks for electricity, gas and black coal, the use of such hedging instruments may not entirely eliminate the realisation of price risks and the negative impact on EVN Group associated therewith. Further actual costs of operating the Group's network may not be recognised by national or international authorities and therefore may not be reflected in network tariffs hence affecting EVN's profit margins.

29 29 Financial risks: In managing credit and default risk, EVN distinguishes between receivables due from end customers on the one hand and receivables from financial and energy trading transactions and major projects/plants on the other hand. The default risk associated with end customer receivables is limited primarily by efficient receivables management, the evaluation of credit standings based on ratings and experience and the regular monitoring of payment performance. However, a lack of purchasing power or deteriorating payment performance can have a negative effect on revenue in the energy segment. Default by a major trading partner, customer or other counterparty or by a particular category (by business or geographic segment) of trading partner, customer or other counterparty or a general increase in levels of default beyond the levels experienced in the past (e.g. due to the financial and sovereign debt crisis and the general economic downturn triggered in the markets where EVN Group is active, notably the Central and Eastern Europe ("CEE") region) could have a material adverse effect on EVN Group's business, results of operations and financial condition. Credit risks, above all in the treasury and energy trading areas and in project and procurement management, are countered with credit monitoring and credit limit systems, hedging instruments (e.g. bank guarantees) and a targeted strategy to diversify business partners. EVN is exposed to risks which encompass adverse fluctuations in foreign exchange rates and prices of financial instruments (such as bonds and shares and other financial assets held by EVN Group and financial liabilities and bonds issued by EVN, respectively) as well as credit risks and liquidity risks of its trading partners and counterparty risks of financial institutions. In connection with the conversion of foreign currency amounts in the consolidated financial statements, EVN is exposed to translation risk and to transaction risk (foreign currency exchange loss). Interest rate risks may materialize in changes in market rates and hence in an increase in interest expenses. This could adversely affect interest income and expense as well as equity. In general, EVN works to achieve a balanced mix of fixed and variable rate financial instruments. Main instruments used by EVN to manage and limit existing interest rate risks are interest rate swaps. Liquidity risk may materialise in case EVN Group should not be in a position to secure the necessary means of financing for its ongoing business needs. A rating downgrade of EVN Group could have a negative impact on the Issuer and the Notes and could increase EVN's refinancing costs and preclude its access to certain financing markets and products. Furthermore, stringent regulations on the capital market (e.g. Basel III) could limit EVN's flexibility to ensure sufficient and timely liquidity to repay liabilities on schedule. EVN holds investments in areas related to the core business (above all Verbund AG, Rohöl- Aufsuchungs Aktiengesellschaft, Burgenland Holding AG, EnergieAllianz Austria GmbH). The difficult energy policy environment creates a risk that the unfavourable development of earnings and equity in these companies can also have a substantial impact on EVN. Furthermore contingent liabilities could be called and result in actual payment obligations. Recognition of impairment losses to receivables, goodwill, investments and/or power plants could have a negative impact on EVN Group's financial condition. In connection with active management of the risks related to liquidity, interest rates, foreign currencies and market prices, the current low interest rate environment represents an increasing challenge for the short- to medium-term investment of liquid funds. This can lead to opportunity losses and have a negative effect on the valuation of employee-related provisions and on future tariffs. EVN Group has set up an ongoing monitoring system to minimise risks in relation to certain financial instruments. Detailed Group directives and limits enable the use of derivative financial instruments which are designed to minimise financial risks potentially associated therewith. However, and particularly in light of recent events in the global financial markets, financial risks cannot be entirely offset by the use of derivative hedging instruments which could potentially have a negative impact on EVN Group's financial condition.

30 30 Strategy and planning risks: Technology risks relate to a late identification of and reaction to new technologies (delayed investments) or to changes in customer needs or investments in "wrong" technologies. Planning risk comprises model risks, incorrect or incomplete assumptions or lost opportunities that could have a negative impact on EVN Group s financial condition. Inefficient or ineffective processes, interfaces or duplication are identified as organizational risk EVN Group is exposed to. Active participation in external research projects, own demonstration facilities and pilot projects, ongoing adjustments to keep technologies at state-of-the-art level, feasibility studies, an ongoing monitoring of parameters as well as process management, its documentation and an internal control system are just some measures taken to minimize these risks. Operational risks: EVN Group believes that its continued success and ability to implement its strategy will significantly depend upon its ability to attract highly skilled management, technical, marketing and support personnel. Competition for such personnel is intense. EVN Group may from time to time experience difficulties in locating candidates with appropriate qualifications. Moreover, EVN Group must be able to retain such personnel. EVN Group expends considerable efforts and financial resources to recruit and train new and existing personnel. Failure to attract and retain qualified personnel, communication problems or cultural barriers as well as absences due to occupational accidents could have a material adverse effect on EVN Group's business, financial condition and results of operations. The business EVN Group is engaged in entails dangerous activities that expose the Issuer to the risk of major liability and thus require strict compliance with safety guidelines. EVN Group's operational risks relate to disruptions in the fields of generation, distribution and supply of electricity, procurement and distribution of gas as well as generation, distribution and supply of heat. A protracted disruption in the supply of primary energy, blackouts or network disruptions could have a material adverse effect on EVN Group's ability to provide its customers with electricity which could have a negative impact on EVN Group's business, results of operations and financial condition. In the environmental services segment, operational risks relate to the fields of waste incineration, water supply and wastewater treatment. In order to avoid any kinds of business disruptions or breakdowns, EVN Group operates technologically advanced facilities, in order to ensure a high level of reliability. While EVN Group maintains systems and procedures aimed at mitigating the occurrence of any of the aforementioned risks, business disruptions or breakdowns cannot be entirely excluded. Also, IT systems represent a risk factor that could lead to supply interruptions or data loss and hence cause a negative effect for EVN. External risks: Changes to existing or new EU and national laws or regulations in the countries in which EVN Group operates may materially impact its financial condition and results of operation. These risks relate to political influences (e.g. the exposure of major projects to political pressure, changing of political parameters and/or regulatory and legal frameworks in foreign markets) and changing environmental regulations (e.g. tightening of requirements under environmental protection laws or market liberalisations, changes in subsidy systems). Changes of legal parameters or non-compliance of contractual partners with contractual obligations may lead to various lawsuits which might negatively affect EVN Group's business operations. Legal and litigation risks exist especially in connection with pending or potential legal proceedings before courts or arbitration and investment protection proceedings. Due to its business EVN Group may also be subject to (environmental) liabilities. Regulatory specification risks also exist in particular in the electricity and gas grid businesses as a result of regulatory interventions by the international and national authorities.

31 31 The competitive environment of the energy markets in which EVN Group operates has changed fundamentally over the past several years, in particular as a result of the process of gradual liberalisation which is being implemented through different approaches and on timetables which vary from country to country. The main consequence of the liberalisation in the EU according to EU regulation is the right of consumers to select their supplier, resulting in an increased price competition and churn rate between the various national or regional suppliers of electricity and natural gas. In EVN Group's core energy supply markets of Austria and South Eastern Europe, customers are entitled to switch suppliers at their discretion, with customers switch rates being affected by price changes and levels of customer service. The continuing liberalisation of energy markets also in markets of South Eastern Europe increases competition and cost pressure and, as a consequence, subjects EVN Group to increasing price and sales risks in its core business fields of electricity and natural gas. Further liberalisation could cause new competitors to enter the relevant energy markets and customer retention to fall. The market entry of new competitors and the customers' increasing willingness to select their supplier may also lead to an increase in the costs associated with strengthening customer retention by adhering to high quality standards and offering related services. As a result of such developments, EVN Group might be unable to gain higher market shares or maintain its existing market shares and find it difficult to expand into new business areas and markets with increased competition. Also, changes in customer behaviour or image-related reasons may result in losses of existing business volume. Limitations on new business activity could negatively affect operating margins and have a material adverse effect on the business prospects, result of operations and financial condition of EVN Group. EVN Group is exposed to the risk that, for whatever reason, required permits and licenses are not issued or extended. Commitments under the Kyoto Protocol to cut greenhouse gases and, in the wake of the implementation of the Kyoto Protocol, the trading and thus the clearing of EU allowances ("CO 2 certificates") have gained and will further gain importance. This is also supported by the harmonisation of Europe s climate policies with the global goals that were approved by the UN Climate Conference in Paris during December Demand for and consumption of energy and environmental services is strongly affected by economic, political, social and technological factors. An economic downturn is likely to weaken energy demand not only of the industrial but also of the residential customer. Moreover, public sector entities and governments often need to decrease their available funds for environmental or energy related projects during an economic crisis. Technological innovations that lead to increased energy efficiency could also lead to a decrease of demand. A recession in Europe, stagnation or declining purchasing power, rising unemployment or an adverse development in connection with the debt and financial crisis could negatively influence EVN's prospects. The countries in Eastern and South Eastern Europe have political, economic and legal systems that are in different stages of transformation as compared to EU standards. Changes in legal and regulatory frameworks and changes in the macroeconomic development may result in political or economic disruption, adverse changes in laws, organised crime, and discrimination against foreign investors as well as government intervention which could harm EVN Group's business activities and investments in these countries. EVN Group is therefore exposed to risks in foreign countries such as gross domestic product volatility, stagnation or decline in purchasing power, foreign exchange instability, foreign exchange controls, inflation, corruption, non-compliance, granting of undue advantages, changes in tax systems, labour unrest and political instability. The occurrence of one or more of these events may affect the ability of EVN Group's clients or counterparties located in the affected area to satisfy their obligations towards EVN Group. The main risks in the CEE region are decreasing profit margins in production, distribution and supply of electricity, the generation, distribution and supply of heat, the reliability of suppliers, the fluctuation of employees, unauthorised grant of benefits as well as the risk of default of commercial and private customers. Furthermore, due to its expansion in the CEE region, EVN Group's local proprietary rights may potentially be impaired or forfeited in case of political or social upheaval in the region. Such measures could include actions that may reduce or eliminate ownership of, control over, or rights to the investment and could have a material adverse effect on EVN Group's business.

32 32 EVN Group is also engaged in projects with local and international partners, including engagements in 50:50 joint ventures. Disagreements with partners due to conflicts of interest, limited means of controlling and managing risk and thereby a deterioration of the relationship could lead to a disruption of a project and therefore have a material adverse effect on the business prospects and the financial condition of EVN Group. Partners can, completely or partially, fail to perform as agreed. Risks can arise from development projects as well as existing business activities. Further, acquisitions may not lead to the anticipated synergies or expected benefits or may take more time than anticipated to develop. EVN Group could potentially be affected by damages caused by force majeure, by a third party and through sabotage to the grid system, natural gas pipelines, wastewater treatment and waste incineration plants. Additionally, natural disasters could have a material adverse impact on EVN Group's production and distribution capacities. The occurrence of any of these events or a combination thereof could adversely affect EVN Group's business. Risk Factors regarding the Notes Notes may not be a suitable investment for all investors Each potential investor in Notes must determine the suitability of that investment in light of his own circumstances. In particular, each potential investor should: (i) have sufficient knowledge and experience to make a meaningful evaluation of the relevant Notes, the merits and risks of investing in the relevant Notes and the information contained or incorporated by reference in this Prospectus or any applicable supplement; (ii) have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of his particular financial situation and the investment(s) he is considering, an investment in the Notes and the impact the Notes will have on his overall investment portfolio; (iii) have sufficient financial resources and liquidity to bear all of the risks of an investment in the relevant Notes, including where principal or interest is payable in one or more currencies or where the currency for principal or interest payments is different from the potential investor's currency; (iv) understand thoroughly the terms of the relevant Notes and be familiar with the behaviour of financial markets; and (v) be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for economic, interest rate and other factors that may affect his investment and his ability to bear the applicable risks. Liquidity Risk Application has been made for the Notes to be admitted to trading on the regulated market of the Luxembourg Stock Exchange and to be listed on the Official List of the Luxembourg Stock Exchange. In addition, the Programme provides that Notes may not be listed at all. Regardless of whether the Notes are listed or not, there can be no assurance that a liquid secondary market for the Notes will develop or, if it does develop, that it will continue. The fact that the Notes may be listed does not necessarily lead to greater liquidity as compared to unlisted Notes. If the Notes are not listed on any stock exchange, pricing information for such Notes may, however, be more difficult to obtain which may adversely affect the liquidity of the Notes. In an illiquid market, an investor might not be able to sell his Notes at any time at fair market prices. The possibility to sell the Notes might additionally be restricted for country specific reasons. Market Price Risk The development of market prices of the Notes depends on various factors, such as changes of market interest rate levels, the policy of central banks, overall economic developments, inflation rates or the lack of or excess demand for the relevant type of Notes. The holder of a Note is therefore exposed to the risk of an unfavourable development of market prices of his Note which materialises if the holder of the Notes sells the Notes prior to the final maturity of such Notes. If the holder decides to hold the Notes until final maturity the Notes will be redeemed at the amount set out in the relevant Final Terms.

33 33 Risk of Early Redemption The applicable Final Terms will indicate whether the Issuer may have the right to call the Notes prior to maturity (optional call right) on one or several dates determined beforehand or whether the Notes will be subject to early redemption upon the occurrence of an event specified in the applicable Final Terms. In addition, the Issuer will have the right to redeem the Notes if the Issuer is required to pay additional amounts (gross-up payments) on the Notes for reasons of taxation as set out in the terms and conditions. If the Issuer redeems the Notes prior to maturity or the Notes are subject to early redemption due to an early redemption event, a holder of such Notes is exposed to the risk that due to such early redemption his investment will have a lower than expected yield. The Issuer can be expected to exercise its optional call right if the yield on comparable Notes in the capital market has fallen which means that the investor may only be able to reinvest the redemption proceeds in comparable Notes with a lower yield. On the other hand, the Issuer can be expected not to exercise its optional call right if the yield on comparable Notes in the capital market has increased. In this event an investor will not be able to reinvest the redemption proceeds in comparable Notes with a higher yield. It should be noted, however, that the Issuer may exercise any optional call right irrespective of market interest rates on a call date. Currency Risk A holder of a Note denominated in a foreign currency is exposed to the risk of changes in currency exchange rates which may affect the yield of such Notes. Changes in currency exchange rates result from various factors such as macroeconomic factors, speculative transactions and interventions by central banks and/or governments. A change in the value of any foreign currency against the euro, for example, will result in a corresponding change in the euro value of a Note denominated in a currency other than euro and a corresponding change in the euro value of interest and principal payments made in a currency other than euro in accordance with the terms of such Note. If the underlying exchange rate falls and the value of the euro correspondingly rises, the price of the Note and the value of interest and principal payments made thereunder expressed in euro falls. In addition, government and monetary authorities may impose (as some have done in the past) exchange controls that could adversely affect an applicable currency exchange rate. As a result, investors may receive less interest or principal than expected, or no interest or principal at all. Fixed Rate Notes A holder of a fixed rate Note ("Fixed Rate Note") is exposed to the risk that the price of such Note falls as a result of changes in the market interest rate. While the nominal interest rate of a Fixed Rate Note as specified in the applicable Final Terms is fixed during the life of such Note, the current interest rate on the capital market ("market interest rate") typically changes on a daily basis. As the market interest rate changes, the price of a Fixed Rate Note also changes, but in the opposite direction. If the market interest rate increases, the price of a Fixed Rate Note typically falls, until the yield of such Note is approximately equal to the market interest rate. If the market interest rate falls, the price of a Fixed Rate Note typically increases, until the yield of such Note is approximately equal to the market interest rate. If the holder of a Fixed Rate Note holds such Note until maturity, changes in the market interest rate are without relevance to such holder as the Note will be redeemed at a specified redemption amount, usually the principal amount of such Note. Floating Rate Notes Floating rate Notes ("Floating Rate Notes") tend to be volatile investments. A holder of a Floating Rate Note is exposed to the risk of fluctuating interest rate levels and uncertain interest income. Fluctuating interest rate levels make it impossible to determine the yield of Floating Rate Notes in advance. If Floating Rate Notes are structured to include Caps or Floors, or any combination of those features, the market value may be more volatile than that for Floating Rate Notes which do not include these features. The effect of a Cap is that the amount of interest will never rise above and beyond the predetermined Cap, so that the holder will not be able to benefit from any actual favourable development beyond the Cap. The yield could therefore be considerably lower than that of similar Floating Rate Notes without a Cap. Neither the current nor the historical value of the relevant floating rate should be taken as an indication of the future development of such floating rate during the term of any Notes.

34 34 Resolutions of Holders If the Terms and Conditions of the Notes provide for the application of the German Act on Debt Securities of 2009 (Schuldverschreibungsgesetz "SchVG"), Holders may agree by majority resolution to amend the Terms and Conditions and to decide upon certain other matters regarding the Notes. Resolutions of Holders may be passed either in a meeting of Holders or by vote taken without a meeting. Therefore, a Holder is subject to the risk of being outvoted by a majority resolution of the Holders. As such majority resolution is binding on all Holders, certain rights of such Holder against the Issuer under the Terms and Conditions may be amended or reduced or even cancelled. Holders' Representative If the Terms and Conditions of the Notes provide for the appointment of a Holders' Representative, either in the Terms and Conditions or by a majority resolution of the Holders, it is possible that a Holder may be deprived of his individual right to pursue and enforce his rights under the Terms and Conditions against the Issuer, such right passing to the Holders' Representative who is then exclusively responsible to claim and enforce the rights of all the Holders. An Austrian court can appoint a trustee (Kurator) for the Notes to exercise the rights and represent the interests of Holders on their behalf Pursuant to the Austrian Notes Trustee Act (Teilschuldverschreibungskuratorengesetz) (RGBl 49/1874 of 24 April 1874), a trustee (Kurator) may be appointed by an Austrian court, on request of any interested party (e.g. a Noteholder) or on the initiative of the competent court, to look after the common interests of the Noteholders in matters of their collective rights. In particular, such appointment may occur in case insolvency proceedings are initiated against the Issuer, in connection with amendments to the terms and conditions of the Notes, certain changes relating to the Issuer or under other similar circumstances. If a trustee is appointed, it will exercise the collective rights and represent the interests of the Noteholders and will be entitled to make statements on their behalf which will be binding on all Noteholders. Where a trustee represents the interests and exercises the rights of Noteholders, his actions may conflict with or otherwise adversely affect the interests of individual or all Noteholders.

35 35 CONSENT TO THE USE OF THE PROSPECTUS Each Dealer and/or each further financial intermediary subsequently reselling or finally placing Notes issued under the Programme if and to the extent this is so expressed in the Final Terms relating to a particular issue of Notes is entitled to use the Prospectus in the Grand Duchy of Luxembourg, the Republic of Ireland, the Republic of Austria and Germany for the subsequent resale or final placement of the relevant Notes during the respective offer period (as determined in the applicable Final Terms) during which subsequent resale or final placement of the relevant Notes can be made, provided however, that the Prospectus is still valid in accordance with Article 11(2) of the Luxembourg Law which implements the Prospectus Directive. The Issuer accepts responsibility for the information given in this Prospectus also with respect to such subsequent resale or final placement of the relevant Notes. The Prospectus may only be delivered to potential investors together with all supplements published before such delivery. Any supplement to the Prospectus is available for viewing in electronic form on the website of the Luxembourg Stock Exchange ( and on the website of EVN AG ( When using the Prospectus, each Dealer and/or relevant further financial intermediary must make certain that it complies with all applicable laws and regulations in force in the respective jurisdictions. In the event of an offer being made by a Dealer and/or a further financial intermediary the Dealer and/or the further financial intermediary shall provide information to investors on the terms and conditions of the Notes at the time of that offer. Any Dealer and/or a further financial intermediary using the Prospectus shall state on its website that it uses the Prospectus in accordance with this consent and the conditions attached to this consent.

36 36 GENERAL DESCRIPTION OF THE PROGRAMME General Under this Programme, the Issuer may from time to time issue Notes denominated in any specified currency agreed between the Issuer and the relevant Dealer(s). The maximum aggregate principal amount of all Notes at any time outstanding under the Programme will not exceed EUR 2,000,000,000 (or its equivalent in other currencies). The Issuer may increase the amount of the Programme in accordance with the terms of the Dealer Agreement (as defined herein) from time to time. Notes may be issued on a continuing basis to one or more of the Dealers and any additional Dealer appointed under the Programme from time to time, which appointment may be for a specific issue or on an ongoing basis. Notes may be distributed by way of public offer or private placements and, in each case, on a syndicated or non-syndicated basis. The Notes may be offered to qualified and nonqualified investors. The method of distribution of each Tranche will be stated in the relevant Final Terms. Notes will be issued in Tranches, each Tranche consisting of Notes which are identical in all respects. One or more Tranches, which are expressed to be consolidated and forming a single series and identical in all respects, but having different issue dates, interest commencement dates, issue prices and dates for first interest payments may form a series ("Series") of Notes. Further Notes may be issued as part of an existing Series. The specific terms of each Tranche will be set forth in the applicable Final Terms. Notes will be issued in such denominations as may be agreed between the Issuer and the relevant Dealer(s) save that the minimum denominations of the Notes will be EUR 1,000 or, if in any currency other than euro, in an amount in such other currency nearly equivalent to EUR 1,000 at the time of the issue of the Notes. Subject to any applicable legal or regulatory restrictions, and requirements of relevant central banks, Notes may be issued in euro or any other currency. Notes will be issued with a maturity of twelve months or more. The Notes will be freely transferable. Notes to be issued under the Programme will be unsubordinated. Notes issued pursuant to the Programme may be rated or unrated. A security rating is not a recommendation to buy, sell or hold Notes issued under the Programme and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency. A suspension, reduction or withdrawal of the rating assigned to the Notes issued under the Programme may adversely affect the market price of the Notes issued under the Programme. Notes may be issued at an issue price which is at par or at a discount to, or premium over, par, as stated in the applicable Final Terms. The issue price for Notes to be issued will be determined at the time of pricing on the basis of a yield which will be determined on the basis of the orders of the investors which are received by the Dealers during the offer period. Orders will specify a minimum yield and may only be confirmed at or above such yield. The resulting yield will be used to determine an issue price, all to correspond to the yield. The yield for Notes with fixed interest rates will be calculated by the use of the ICMA method, which determines the effective interest rate of notes taking into account accrued interest on a daily basis. Application has been made to the Luxembourg Stock Exchange for notes issued under this Programme to be admitted to trading on the Luxembourg Stock Exchange's Regulated Market and to be listed on the Official List of the Luxembourg Stock Exchange. Notes may further be issued under the Programme without being listed on any stock exchange. Notes will be accepted for clearing through one or more Clearing Systems as specified in the applicable Final Terms. These systems will include those operated by Clearstream Banking AG, Frankfurt am Main (CBF), Clearstream Banking, société anonyme, Luxembourg (CBL) and Euroclear Bank SA/NV (Euroclear). Notes denominated in euro or, as the case may be, such other currency recognised from time to time for the purposes of eligible collateral for Eurosystem monetary policy and intra-day credit operations by the Eurosystem, are intended to be held in a manner, which would allow Eurosystem eligibility. Therefore, these Notes will initially be deposited upon issue with in the case of (i) a new global note either Clearstream Banking société anonyme, Luxembourg or Euroclear Bank SA/NV as common safekeeper or, (ii) a classical global note Clearstream Banking AG, Frankfurt am Main. It does not necessarily mean that the Notes will be recognised as eligible collateral for

37 37 Eurosystem monetary policy and intra-day credit operations by the Eurosystem either upon issue or at any or all times during their life. Such recognition will depend upon satisfaction of the Eurosystem eligibility criteria. Deutsche Bank Aktiengesellschaft will act as fiscal agent and paying agent (the "Fiscal Agent"). Deutsche Bank Luxembourg S.A. will act as Luxembourg Listing Agent. Issue Procedures General The Issuer and the relevant Dealer(s) will agree on the terms and conditions applicable to each particular Tranche of Notes (the "Conditions"). The Conditions will be constituted by the relevant set of Terms and Conditions of the Notes set forth below (the "Terms and Conditions") as further specified by the Final Terms as described below. Options for sets of Terms and Conditions A separate set of Terms and Conditions applies to each type of Notes, as set forth below. The Final Terms provide for the Issuer to choose between the following Options: - Option I Terms and Conditions for Notes with fixed interest rates; - Option II Terms and Conditions for Notes with floating interest rates. Documentation of the Conditions The Issuer may document the Conditions of an individual issue of Notes in either of the following ways: - The Final Terms shall be completed as set out therein. The Final Terms shall determine which of the Option I or II including certain further options contained therein, respectively, shall be applicable to the individual issue of Notes by replicating the relevant provisions and completing the relevant placeholders of the relevant set of Terms and Conditions as set out in the Prospectus in the Final Terms. The replicated and completed provisions of the set of Terms and Conditions alone shall constitute the Conditions, which will be attached to each global note representing the Notes of the relevant Tranche. This type of documentation of the Conditions will be required where the Notes are publicly offered, in whole or in part, or are to be initially distributed, in whole or in part, to nonqualified investors. - Alternatively, the Final Terms shall determine which of Option I or II and of the respective further options contained in each of Option I or II are applicable to the individual issue by referring to the relevant provisions of the relevant set of Terms and Conditions as set out in the Prospectus only. The Final Terms will specify that the provisions of the Final Terms and the relevant set of Terms and Conditions as set out in the Prospectus, taken together, shall constitute the Conditions. Each global note representing a particular Tranche of Notes will have the Final Terms and the relevant set of Terms and Conditions as set out in the Prospectus attached. Determination of Options / Completion of Placeholders The Final Terms shall determine which of the Option I or II shall be applicable to the individual issue of Notes. Each of the sets of Terms and Conditions of Option I or II contains also certain further options (characterised by indicating the respective optional provision through instructions and explanatory notes set out either on the left of or in square brackets within the text of the relevant set of Terms and Conditions as set out in the Prospectus) as well as placeholders (characterised by square brackets which include the relevant items) which will be determined by the Final Terms as follows: Determination of Options The Issuer will determine which options will be applicable to the individual issue either by replicating the relevant provisions in the Final Terms or by reference of the Final Terms to the respective sections

38 38 of the relevant set of Terms and Conditions as set out in the Prospectus. If the Final Terms do not refer to an alternative or optional provision or such alternative or optional provision is not replicated therein it shall be deemed to be deleted from the Conditions. Completion of Placeholders The Final Terms will specify the information with which the placeholders in the relevant set of Terms and Conditions will be completed. In the case the provisions of the Final Terms and the relevant set of Terms and Conditions, taken together, shall constitute the Conditions the relevant set of Terms and Conditions shall be deemed to be completed by the information contained in the Final Terms as if such information were inserted in the placeholders of such provisions. All instructions and explanatory notes and text set out in square brackets in the relevant set of Terms and Conditions and any footnotes and explanatory text in the Final Terms will be deemed to be deleted from the Conditions. Controlling Language As to the controlling language of the respective Conditions, the following applies: - In the case of Notes (i) publicly offered, in whole or in part, in the Federal Republic of Germany, or (ii) initially distributed, in whole or in part, to non-qualified investors in the Federal Republic of Germany, German will be the controlling language. If, in the event of such public offer or distribution to non-qualified investors, however, English is chosen as the controlling language, a German language translation of the Conditions will be available from the principal offices of the Fiscal Agent and of the Issuer, listed on the back cover of this Prospectus. - In other cases the relevant Issuer will elect either German or English to be the controlling language.

39 39 EVN AG History, Foundation, Registered Office and Financial Year Niederösterreichische Elektrizitätswirtschafts-Aktiengesellschaft (NEWAG), the predecessor to EVN AG, was incorporated on 2 May In 1986, NEWAG, in accordance with the Austrian Stock Corporation Act, merged with NIOGAS Niederösterreichische Gaswirtschafts-Aktiengesellschaft into NEWAG NIOGAS Aktiengesellschaft. In 1988, the name was changed to EVN Energie-Versorgung Niederösterreich Aktiengesellschaft which name was eventually changed to EVN AG ("EVN") in EVN is incorporated as a stock corporation (Aktiengesellschaft) in the Republic of Austria, its registered seat is the political municipality of Maria Enzersdorf in Lower Austria, and it is registered with the commercial register of the district court of Wiener Neustadt under registration number FN h. Its head office is located at EVN Platz, 2344 Maria Enzersdorf, Republic of Austria. The Issuer may be reached by telephone on The financial year of EVN begins on 1 October of each year and ends on 30 September of the following year. Corporate Purpose The main objects of EVN, according to Article 2 of its Articles of Incorporation, are to generate, produce, procure, process, handle, transport and distribute energy and energy carriers of all types and water, taking into account the requirements of environmental protection and the preservation of energy supply, and also to market the by-products of energy production. Included in these objects are the uniform consolidation and the operation of plants owned by it and/or by third parties for the generation, production, procurement, handling, transport and distribution of energy, primary energy sources and water, the planning and implementation of projects for these facilities as well as their installation. These objects are supported by the analysis, application, promotion and expansion of an efficient, economical and careful use of energy and water. Further objects are the planning, construction, operation, commercial exploitation and distribution of appliances, equipment and plants mainly in the field of gas, water and heating technology and electrical engineering and the construction of machinery, plants and equipment, including the operation of plants and installations of any kind and the performance of related services of electronic data processing as well as the installation and operation of communication networks and the performance of telecommunication services of any kind. Another business area is to utilize and recycle waste materials and all other kinds of materials and substances as well as to plan, build, operate and exploit commercially in every way the waste management installations owned by EVN or third parties and the trading in raw and auxiliary materials. EVN is authorised to take all measures, conduct all activities, and transact all business, which directly or indirectly further these objects. EVN can establish, acquire, operate, take on and lease, dispose of and/or participate in domestic or foreign branches and other enterprises, especially if their corporate objects are related to those of EVN. EVN may consolidate the enterprises in which it owns shares or interests under its direction, or limit itself to managing its participations. Share capital EVN's share capital amounts to EUR 330 million divided into 179,878,402 no-par value bearer shares. All shares have been issued and are fully paid. There is only one class of shares, and all shares carry the same rights and duties.

40 40 Major Shareholders On the basis of federal and provincial constitutional law requirements, NÖ Holding GmbH, a subsidiary of the province of Lower Austria continues to be the major shareholder of EVN, with a stake of 51%. Lower Austria s shareholding is formally held via its investment holding, NÖ Landes- Beteiligungsholding GmbH, with its registered seat in St. Pölten. The second largest shareholder is EnBW Trust e.v. (EnBW Trust), an association headquartered in Karlsruhe, which is recorded in the register of associations maintained by the district court in Mannheim under VR EnBW Trust holds an investment of 32.0% of the share capital in trust for EnBW Energie Baden-Württemberg AG (EnBW), which is also headquartered in Karlsruhe and recorded in the commercial register of the district court in Mannheim under HRB Administrative, Management and Supervisory Bodies The Austrian Stock Corporation Act prescribes a dual management system which stipulates a strict separation between management bodies (i.e. Executive Board) and controlling bodies (i.e. Supervisory Board). It is not permitted to be a member of both. Executive Board The Executive Board of EVN must have a minimum of two members. The Executive Board is responsible for managing the company to support its business activities and continued success in the interests of shareholders, employees and the general public. The work of the Executive Board is based on legal requirements and the company s by-laws as well as the rules of procedure for the Executive Board that were approved by the Supervisory Board. Important rules of conduct are also defined by the ACGC - Austrian Corporate Governance Code. Irrespective of the Executive Board s overall responsibility, the Supervisory Board establishes and assigns specific areas of responsibility to the individual Executive Board members based on the given requirements. Certain transactions are reserved for joint discussions and decision-making by the full Executive Board. The Executive Board is required to obtain the prior consent of the Supervisory Board for business transactions that require this approval based on legal regulations or a previous Supervisory Board resolution. The company by-laws contain a detailed list of such cases. Currently the Executive Board of EVN consists of the following two members: Name and Title Business Activities and Experience Peter Layr Peter Layr has executive responsibility for the Spokesman of the Executive Board and CEO Generation, Network Infrastructure Austria and Environmental Services segments as well as for the corporate functions data processing, procurement and purchasing as well as internal auditing. Principle activities currently performed outside the Issuer: - Chairman Supervisory Board: Netz Niederösterreich GmbH - Chairman Supervisory Board: RAG-Beteiligungs- Aktiengesellschaft - Chairman Supervisory Board: Rohöl-Aufsuchungs Aktiengesellschaft - Member Supervisory Board: Verbund AG Stefan Szyszkowitz Member of the Executive Board Stefan Szyszkowitz has executive responsibility for the Energy Trade and Supply and Energy Supply South East Europe segments as well as for the corporate functions

41 41 and CFO controlling (incl. investor relations), customer relations, finance, accounting, general secretary and corporate affairs, information and communications, human resources as well as administration and construction. Principle activities currently performed outside the Issuer: - Chairman Supervisory Board: Burgenland Holding Aktiengesellschaft - Deputy Chairman Supervisory Board: Netz Niederösterreich GmbH - Chairman Supervisory Board: EVN- Pensionskasse Aktiengesellschaft - Member Supervisory Board: Energie Burgenland AG - Member Supervisory Board: RAG-Beteiligungs- Aktiengesellschaft - Member Supervisory Board: Rohöl-Aufsuchungs Aktiengesellschaft - Member Supervisory Board: CEESEG Aktiengesellschaft - Member Supervisory Board: Wiener Börse AG Supervisory Board The Supervisory Board performs its duties in accordance with the provisions of stock corporation law and the company s by-laws. Additional guidelines for its activities are provided by the rules of procedure for the Supervisory Board and by the Austrian Corporate Governance Code. In accordance with organizational and legal regulations, the Executive Board is required to report to the Supervisory Board. It is the particular responsibility of the Supervisory Board to supervise the work of the Executive Board, from whom they are authorized to demand a report at any time concerning all relevant aspects of business development at the company. The scope of business transactions requiring the formal consent of the Supervisory Board, as stipulated in the Austrian Stock Corporation Act, can be extended by a resolution of the Supervisory Board itself. The internal rules of procedure for the Executive Board and the Supervisory Board contain a detailed list of such business transactions and measures. As of the date of this Prospectus, the Supervisory Board of EVN had ten shareholder representatives elected by the Annual General Meeting and five members delegated by the Works Council. The Supervisory Board is headed by a chairman and two vice-chairmen who are elected by the Supervisory Board from among its members. At present the Supervisory Board of EVN consists of the following members: Names and Positions Held Principal Occupation outside the Issuer Shareholder representatives Bettina Glatz-Kremsner President and Chairwoman Norbert Griesmayr 1 st Vice Chairman Member of the Executive Board of Casinos Austria AG Member of the Supervisory Board of Casinos Austria International Holding GmbH, Flughafen Wien AG, NÖ Kulturwirtschaft GesmbH, Österreischiches Sportwetten Gesellschaft m.b.h. Chairman of the Executive Board of VAV Versicherungs-Aktiengesellschaft Member of the Executive Board of Hutschinski Privatstiftung, Privatstifung zur Verwaltung von

42 42 Willi Stiowicek 2 nd Vice Chairman Anteilsrechten Member of the Supervisory Board of Collegialität Versicherungsverein Privatstiftung Head of the Presidential Department of the Magistrate of the Provincial Capital St. Pölten Member of the Supervisory Board of NÖ Regional GmbH Philipp Gruber Deputy chairman of the parliamentary club (Klubdirektor-Stellvertreter) Dieter Lutz Managing Director of BENDA LUTZ-WERKE GmbH and IMMRE-LUTZ GmbH Member of the Supervisory Board of NÖ Bürgschaften und Beteiligungen GmbH Reinhard Meißl Head of the Finance department, Provincial Government of Lower Austria, CEO of the NÖ Holding GmbH and the NÖ Landes-Beteiligungsholding GmbH Vice Chairman of the Supervisory Board of EBG MedAustron GmbH and tecnet equity NÖ Technologiebeteiligungs-Invest GmbH Chairman of the Supervisory Board of Land Niederösterreich Finanz- und Beteiligungsmanagement GmbH Susanne Scharnhorst Angela Stransky Friedrich Zibuschka Johannes Zügel CEO of the University of Applied Sciences Wiener Neustadt Member of the Executive Board of NÖ Raiffeisen Kommunalprojekte Service Gesellschaft m.b.h., NÖ Raiffeisen-Leasing Gemeindeimmobilienservice GmbH, NÖ Raiffeisen-Leasing Gemeindeprojekte Gesellschaft m.b.h. Associated university professor, Institute for Transport Studies, University of Natural Resources and Life Sciences, Vienna Zibuschka Regional Consulting OG, partner with unlimited liability Head of Mergers & Acquisitions of EnBW Energie Baden-Württemberg AG Employee representatives Franz Hemm Manfred Weinrichter Paul Hofer Friedrich Bußlehner Monika Fraißl Chairman of the Central Works Council of Netz Niederösterreich GmbH, Vice-President of the Lower Austrian Chamber of Labour Vice Chairman of the Central Works Council of Netz Niederösterreich GmbH Chairman of the Central Works Council of EVN AG Central Works Council Central Works Council

43 43 The members of the Executive Board and the Supervisory Board of EVN can be contacted at EVN s business address, namely EVN Platz, 2344 Maria Enzersdorf, Republic of Austria. None of the above members of the Executive Board and the Supervisory Board have declared any potential conflict of interest between any duties to the Issuer and their private interests and/or other duties. Board Practices Commitment to the Austrian Corporate Governance Code EVN is a listed stock corporation under Austrian law whose shares are traded on the Vienna Stock Exchange. Corporate governance is therefore based on Austrian law in particular stock corporation and capital market laws, legal regulations governing co-determination by employees and the company by-laws as well as the Austrian Corporate Governance Code (ACGC) and the rules of procedure for the company s corporate bodies. The Executive Board and the Supervisory Board of EVN are committed to the principles of good corporate governance, thus fulfilling the expectations of national and international investors who demand the management and control of EVN to be carried out in a responsible, transparent and sustainable manner. Effective from 1 June 2006, EVN fully complied with the first version of the Austrian Corporate Governance Code (ACGC) published in January In the 2014/15 financial year the January 2012 version of the ACGC was complied with in its entirety. On 1 October 2015, EVN announced its commitment to comply with the ACGC in the January 2015 version. Audit of compliance with the ACGC The report by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna, on their audit of the corporate governance report of EVN (pursuant to 96 (2) Stock Corporation Act) to evaluate compliance with the Austrian Corporate Governance Code is available on the website of EVN. Supervisory Board committees The Supervisory Board fulfils its responsibilities as a joint decision-making body in cases where individual issues are not delegated to its committees. The Supervisory Board committees are responsible for preparing negotiations and resolutions, monitoring the implementation of the Supervisory Board s decisions and taking decisions on issues delegated by the Supervisory Board. The following committees were established by the Supervisory Board of EVN AG, each of which includes at least three elected Supervisory Board members and the legally required number of employee representatives: the Audit Committee, the Personnel Committee and the Working Committee. Each of these committees is required to consist of at least three elected members of the Supervisory Board and the legally required number of employee representatives. The Audit Committee is, amongst other things, responsible for monitoring the accounting process, monitoring the effectiveness of the internal control system, the internal audit and risk management systems, monitoring the annual audits of consolidated financial statements, verifying and monitoring the independence of the auditor of the annual financial statements, evaluating and preparing the Report of the Supervisory Board approving the financial statements of EVN and the consolidated financial statements, the proposal of the Executive Board in regard to the distribution of profits, the Management Report and the corporate governance report. As of the date of this Prospectus, members of the audit committee were: Norbert Griesmayr (Chairman), Bettina Glatz-Kremsner, Willi Stiowicek, Reinhard Meißl, Franz Hemm, and Paul Hofer.

44 44 Compliance preventing the misuse of inside information In fulfilling the regulations stipulated in the Austrian Stock Corporation Act and the Austrian Stock Exchange Act, the Austrian Issuer Compliance Code and the Directive of the European Parliament on insider dealing and market manipulation, EVN has developed a comprehensive set of rules designed to prevent the misuse of inside information. 20 permanent and four ad-hoc areas of EVN s business have been designated as strictly confidential, and the involved employees take part in regular training. In accordance with the Austrian Stock Exchange Act, compliance and confidentiality are monitored and evaluated by a specially designated compliance officer, reporting directly to the Executive Board. In the 2014/15 financial year, the regular controls carried out by the compliance officer did not identify any deficiencies. Statutory Auditors Independent auditors of EVN are KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Porzellangasse 51, 1090 Vienna, Austria. The auditors are a member of the Austrian Chamber of Certified Public Accountants (Kammer der Wirtschaftstreuhänder; Schönbrunnerstraße /Stg.1/6.Stock, 1120 Wien). Selected Financial Information The following table sets out selected financial information relating to EVN. The information has been extracted from the audited consolidated financial statements of EVN for the years ended 30 September 2015 and 30 September These consolidated financial statements of EVN have been prepared in accordance with the International Financial Reporting Standards as adopted by the EU ("IFRS"). Key figures Consolidated statement of operations 2015/ /15 Revenue EUR million 2, ,135.8 EBITDA EUR million Results from operating activities (EBIT) EUR million EBIT margin % Result before income tax EUR million 198, Group net result EUR million Consolidated statement of financial position Total assets EUR million 6, ,501.2 Equity EUR million 2, ,590.1 Equity ratio % Net debt EUR million 1, ,230.9 Gearing % Consolidated statement of cash flows Net cash flow from operating activities EUR million

45 45 Acquisition of intangible assets and property, plant and equipment EUR million Business Overview and Organizational Structure of EVN Group EVN is an international, listed energy and environmental services company, with headquarters in Lower Austria. EVN is the parent company of the EVN Group, its shares being listed for trading on the Vienna Stock Exchange. As of 30 September 2016, financial statements of EVN Group included 67 fully consolidated companies, one joint operation included through proportionate consolidation and 17 companies consolidated at equity. EVN is currently active in 11 countries and employed an average workforce of 6,830 during the 2015/16 financial year. EVN's main operating locations are Austria, Bulgaria, Macedonia and Germany, each with a workforce of more than 100. The structure of the EVN Group is based on three general categories: the energy business, the environmental services business and other business activities. The energy business covers the entire electricity and heat value chain from generation and distribution to networks and supply, while the natural gas business is concentrated on the distribution and supply. This product portfolio is supplemented by the activities of EVN subsidiaries in related areas as well as regional cable TV and telecommunication services. The environmental services business involves activities in the areas of drinking water supply, wastewater disposal and thermal waste utilisation. The definition of the operating segments is done in accordance with the requirements of IFRS 8 "Business Segments" and is therefore based exclusively on the internal organisational and reporting structure of the EVN Group. The following section describes the operating performance of EVN's six segments and the effects of energy sector indicators on their development.

46 46 ENERGY BUSINESS EVN follows an integrated business model that covers the entire value chain in the energy business. Its activities include energy generation, the operation of energy distribution networks and the delivery of energy to end customers. EVN is active in the areas of electricity, natural gas and heat with different focal points in the individual markets. EVN provides a full range of these services in Lower Austria, while business activities in Bulgaria and Macedonia are concentrated on the operation of electricity networks and electricity supplies to end customers. Heat is also sold to end customers in Bulgaria. In Germany, EVN holds investments in power plants and trades and sells energy through EnergieAllianz. Business activities also involve the construction and operation of natural gas distribution networks in Croatia and support for national energy supplies in Albania through the operation of the Ashta hydropower plant. The development of EVN's energy sector business is influenced to a significant degree by external factors. Energy consumption by retail customers in the form of electricity, natural gas and heat is influenced primarily by the weather, while demand for energy by industrial customers is driven mainly by the general business environment. The average temperatures in EVN s relevant markets were extremely mild during the 2015/16 financial year. In particular the winter months were significantly warmer than usual in all three core markets. The average euro price for Brent crude oil was 27.9% below the previous year at EUR 38.0 per barrel in 2015/16, above all due to the worldwide oversupply. The average EEX price for natural gas fell by 32.5% year-on-year to EUR 14.4 per MWh, not least due to the higher temperatures during the reporting period and the resulting lower demand on the spot markets. The price of coal fell by 14.4% to EUR 46.2 per tonne, primarily due to weaker demand in China. After a strong increase in the price of CO2 emission certificates to EUR 8.4 per tonne in the first quarter of 2015/16, the price declined to EUR 6.1 per tonne at the end of the reporting year. The forward and spot market prices for base load and peak load electricity also continued to decline during the reporting year. This development resulted from the further expansion of electricity generation capacity from renewable sources in Austria and Germany as well as the lower prices for primary energy carriers and CO2 emission certificates. However, the forward prices for electricity and the prices for primary energy and CO2 emission certificates increased towards the end of the reporting

47 47 year due to the temporary standstill of production capacities in France. On average, the forward prices applicable to 2015/16 fell by 12.8% to EUR 30.4 per MWh for base load electricity and by 13.0% to EUR 38.2 per MWh for peak load electricity. The spot market prices declined by 13.2% to EUR 27.8 per MWh for base load electricity and by 14.2% to EUR 34.2 per MWh for peak load electricity. For the distribution of electricity and natural gas, EVN operates electricity networks in Lower Austria, Bulgaria and Macedonia and natural gas networks in Lower Austria and Croatia. The operation of these networks is based on a regulated business model under which the tariffs charged by the network operator for the distribution of electricity and natural gas are set by the respective regulatory authority. In addition to electricity and natural gas distribution, network operations also include cable TV, Internet and telecommunications services in Lower Austria and the neighbouring province of Burgenland. Electricity is sold to Austrian end customers in a market that was liberalised during 2001, while the natural gas market has been liberalised since The respective prices are determined by supply and demand. EVN s energy offering is complemented by competitively priced heat from over 60 biomass plants, which makes EVN according to its own market observation Austria s largest supplier of natural heat. In addition to a wide range tariff models that are designed to meet the individual needs of customers, EVN offers a wide variety of energy services from a single hand. Due to an attractive service and support portfolio the EVN brand enjoys high positive recognition, above all in its home market of Lower Austria. This forms the basis for strong customer loyalty and makes EVN the market leader in Lower Austria. In South Eastern Europe, the energy markets are moving towards liberalisation. The market for business customers in Bulgaria and Macedonia has already been liberalised, while household customers are still supplied at regulated prices. The tariffs in Bulgaria, where EVN sells heat from its co-generation plant in Plovdiv to customers, are set by the regulatory authority. EVN supplies roughly 2.0 million electricity, natural gas, heat drinking water, cable TV and telecommunications customers in Austria, approximately 1.7 million electricity and heat customers in Bulgaria and nearly 800,000 electricity customers in Macedonia. The expansion of the natural gas supply business along the Dalmatian Coast in Croatia is progressing, and customers have been connected to the network in all three of the region s counties. Segment: Generation EVN can rely on a balanced mix of energy generation capacity. In Austria, EVN operates natural gasand black coal-fired power plants as well as plants that use renewable sources (hydropower, wind power and to a lesser extent solar energy) for energy generation. This combination of thermal generation plants and generation capacity from renewable sources is important to ensure reliable supplies for customers at all times. A key aspect in this regard is the ability to supplement the volatile generation from renewable energy sources with predictable feed-in volumes from conventional

48 48 facilities that are available at short notice. Supply stability is protected, above all with the help of the thermal power generation plants (the gas fired power plants in Theiss and Korneuburg, the coal-fired power plants in Dürnrohr and Duisburg-Walsum) and hydropower from EVN s five pump storage power plants. EVN continues to focus on renewable energy sources, in particular wind power, for the expansion of generation capacity. Approximately 618 MW of EVN s total installed capacity is currently based on renewable energy. The energy generated by these plants is generally sold at market prices in Austria, while the prices in South Eastern Europe are largely regulated. Subsidised feed-in tariffs apply to the energy generated by wind power and photovoltaic plants in Austria for a period of 13 years in each case. In Bulgaria, EVN generates electricity in eight wind power plants and two photovoltaic plants at subsidised feed-in tariffs. In Macedonia, EVN generates electricity in eleven small hydropower plants which is sold at prices related to the prices for grid loss procurement. As of 30 September 2016, EVN had a total capacity of 2,389 MW for electricity generation, 618 MW of which were based on renewable energy sources. The share of renewable energy comprises, among others, the following production capacities: 109 MW: hydropower storage power stations and run-of-river power stations in Austria 74 MW: hydropower plants in Macedonia and Albania 123 MW: hydropower purchasing rights from Austria and Germany 252 MW: windpower plants in Lower Austria, 16 MW: windpower plants in Bulgaria 18 MW: photovoltaic power plants and biomass-fired combined heat and power plants 26 MW: sludge-fired combined heat and power plants Wind flows were substantially lower and water flows slightly lower than in the previous year, which led to a drop in the production volume from renewably energy. The first full year of operations at the 37- MW Prottes-Ollersdorf wind park and the commissioning of the Paasdorf-Lanzendorf wind park were unable to offset this decline. EVN s thermal power plants are also in continual operational readiness to balance the fluctuations from renewable energy generation and ensure network stability. As in the past four years, the Theiss and Korneuburg power plants provided reserve capacity for southern Germany also during the winter 2015/16 and, in addition, also provided reserve capacity for Austria during the summer The contracts covering the provision of these power plants will continue to the end of the winter half-year 2017/18. Production from Duisburg-Walsum coal-fired power plant was also higher year-on-year in 2015/16. In the financial year 2015/16 the electricity generation rose to 5,105 GWh, the production from renewable energy decreased to 1,626 GWh, while the generation from EVN's thermal power plants increased to 3,479 GWh.

49 49 EVN covered 32.1% of the electricity sold during the reporting year with its own production (previous year: 25.3%). The comparable value for Austria and Germany was 80.0% (previous year: 60.2%). The share of renewable energy in the Group s total electricity production equalled 34.5% (previous year: 43.1%). In the financial year 2015/16, revenues in the Generation Segment amounted to EUR million with the EBITDA being at EUR 74.1 million. The increase in revenue from the delivery of balancing energy, the management of shortages in Austria and the provision of reserve capacity for network stabilisation in southern Germany more than offset the volume- and price-related decrease in revenue from renewable generation. The investments made during the financial year 2015/16 were directed almost entirely to equipment for the generation of electricity from renewable energy. Because of the continuing low or negative spreads between the cost of primary energy and the wholesale prices for electricity, EVN's thermal generation capacity will continue to be used primarily to supply balancing energy and for the management of shortages. The results from renewable capacity are dependent on electricity prices and from wind and water flows. Segment: Network Infrastructure Austria The Network Infrastructure Austria Segment covers the operation of the regional electricity and natural gas networks as well as the cable TV and telecommunications networks in Lower Austria and Burgenland. This segment also includes corporate services, above all in connection with construction. The electricity and natural gas network tariffs in Austria are adjusted annually on 1 January by the E- Control Commission in accordance with the incentive regulatory system. As of 1 January 2016, the electricity and natural gas network tariffs for household customer were each raised by an average of 11.0% (1 January 2015: reduction of 1.0% in the electricity network tariffs) and 3% reduction in the natural gas network tariffs). Electricity distribution volumes rose slightly from 8,121 GWh in the previous year to 8,128 GWh in 2015/16. The growth in natural gas distribution volumes was significantly higher with an increase of 1,258 GWh, or 8,4%, to 16,216 GWh. This development reflected the stronger demand by supraregional network operators for thermal generation to stabilise the networks in Austria and southern Germany. Revenues in the Network Infrastructure Austria Segment amounted to EUR million, EBITDA to EUR million. The four-year investment programme launched by EVN in 2013/14, which calls for investments of EUR 1 billion in Lower Austria, continued its third year as planned in 2015/16. Approximately 70% of the total investment volume is directed to the Network Infrastructure Austria Segment. These investments are intended, in particular, to strengthen and expand the network infrastructure to accommodate the steadily increasing, volatile electricity volumes from decentralised renewable generation. Investments in this segment totalled EUR million in 2015/16 and were EUR 5.5 million, or 3.4%, lower year-on-year due to changes in the timing of individual construction projects. The network tariffs for electricity and natural gas will increase in 2016/17 based on the adjustments that are scheduled to take effect on 1 January 2017 in accordance with the regulatory system. This corresponds to the necessary high investments carried out in recent years, above all to accommodate renewable energy, and to the comparison of network distribution volumes with the respective reference periods. The resulting increase in scheduled depreciation should offset most of the tariff

50 50 increases, and segment results are therefore expected to remain stable in 2016/17. Segment: Energy Trade and Supply The Energy Trade and Supply Segment is responsible for the trading and sale of electricity and natural gas to end customers, primarily in the Austrian home market and in wholesale markets. The segment s business activities also include the procurement of electricity, natural gas and other primary energy carriers as well as the production and sale of heat. Investments in the Energy Trade and Supply Segment rose in 2015/16 by EUR 3.3 million, or 14.7%, to EUR 26.0 million. These expenditures were concentrated in EVN's heating business, with a focus on the expansion of the district heating networks and the construction of district heating and biomass heating plants. In the financial year 2015/16, revenues in this segment amounted to EUR million and EBITDA to EUR million. The decline in revenues in the amount of about EUR 22 million was primarily caused by a reduction in natural gas trading activities, a volume-related decrease in the sale of hydropower production and a lower level in wholesale prices. Segment: Energy Supply South East Europe The Energy Supply South East Europe Segment is responsible for the operation of electricity networks and the sale of electricity to end customers in Bulgaria and Macedonia, the generation and sale of heat in Bulgaria, the production of electricity in Macedonia, the sale of natural gas to end customers in Croatia and energy trading throughout the region. EVN successfully participated in the privatization tenders in Bulgaria and Macedonia through which it acquired the distribution and supply companies in Bulgaria in 2005 and in Macedonia in 2006, respectively. While in Bulgaria EVN Group supplies electricity in only one third of the country s territory, EVN Group provides electricity for the entire country in Macedonia. The regulatory authority in Bulgaria raised the end customer prices for electricity by 0.83% in EVN's supply area as of 1 July However, the tariffs more relevant for the reporting year were still based on the 0.4% reduction implemented on 1 August The end customer prices for heat in 2015/16 were reduced step-by-step by 1.9% as compared to the level on 1 July EVN is continuing to actively pursue the arbitration proceedings started in June 2013 at the World Bank s International Centre for the Settlement of Investment Disputes (ICSID). For details please see Governmental, Legal and Arbitration Proceedings below, page 54. A tariff decision in Macedonia on 1 July 2016 led, as in the previous year, to an average reduction of 0.3% in the end customer prices for electricity. The expansion of natural gas supplies along the Dalmatian coast in Croatia continued during 2015/16. Natural gas deliveries to household customers will still be based on regulated tariffs up to 31 March The 2015 tariff decisions in Bulgaria and Macedonia and the liberalisation steps taken in both countries as well as the lower temperatures led to a decline of EUR 88.4 million, or 8.5%, in revenue for the Energy Supply South East Europe Segment to EUR million in 2015/16. Operating expenses declined in line with revenue and fell by EUR 97.2 million, or 10.6%, to EUR million. Apart from a price- and volume-related decrease in energy procurement costs, energy purchases from third parties declined primarily due to the further reduction of network losses. Positive effects were provided by continuous improvements in the collection of customer receivables and further internal cost savings. EBITDA improved by EUR 8.8 million, or 7.2%, to EUR million.

51 51 Depreciation and amortisation, including the effects of impairment testing, rose by EUR 31.2 million, or 49.5%, to EUR 94.1 million. This increase resulted chiefly from an impairment loss of EUR 31.3 million recognised by the Bulgarian heating company TEZ Plovdiv to reflect the continued adverse rulings by the regulatory authority in the heating sector. The results from operating activities (EBIT) fell by EUR 22.4 million, or 38.8%, year-on-year to EUR 35.4 million. EVN's companies in South Eastern Europe generated 450 GWh of electricity in 2015/16, which represents a year-on-year decrease of 45 GWh or 9.1%. Water flows in Macedonia were higher than the long-term average, but failed to reach the record prior year level. The result was a decline of 34 GWh, or 16.4%, in renewable production to 175 GWh. Thermal electricity generation was also lower due to the very mild temperatures, which led to a reduction in the use of the co-generation plant in Plovdiv, and fell by 11 GWh, or 3.7%, to 276 GWh. Electricity network sales volumes totalled 13,403 GWh and were 160 GWh, or 1.2%, lower than the previous year, above all due to the mild winter. The higher temperatures combined with liberalisation steps taken during the reporting year were also responsible for a decline of 577 GWh, or 4.6%, in electricity sales volumes to 11,882 GWh. In addition, heat sales to end customers in Bulgaria declined by 27 GWh, or 12.8%, to 184 GWh. Investments in the Energy Supply South East Europe Segment rose by EUR 14.9 million, or 19.0%, to EUR 93.5 million during the reporting year. Projects focused on the replacement of metres in Bulgaria and on efficiency improvements to the networks through the expansion of infrastructure and measures to reduce network losses. EVN sees itself well positioned for the increasing competition brought about by the continued liberalisation of the South Eastern European energy markets. This market deregulation is, however, expected to have an impact on segment earnings in 2016/17. Overall, results should be stable with a positive trend due to the absence of the one-off effect from the impairment loss recognised in 2015/16. Changes in the regulatory environment and the initiated proceedings in Bulgaria could, however, have a significant influence on segment earnings.

52 52 ENVIRONMENTAL SERVICES BUSINESS Environmental services, EVN s second major business, are classified in three areas: water supply, thermal waste utilisation and the international project business. In Lower Austria, EVN supplies more than 560,000 residents directly or indirectly with drinking water. A strong reputation as a reliable electricity, natural gas and heat provider has led numerous communities to entrust EVN with water networks that they can no longer operate efficiently. EVN is therefore recording steady growth in this business area. The operation of a thermal waste utilisation plant in Dürnrohr not only relies on stateof- the-art technology to make a significant contribution to waste disposal, but also uses the heat released by the incineration process to supply EVN's customers in the provincial capital of St. Pölten. In the international project business, EVN owns a European service company for water and environmental services projects: WTE, a German subsidiary, which has successfully realised more than 100 projects in over 15 countries. Its core expertise covers the customised design and construction of energy-efficient, resource-conserving and ecologically optimised plants for drinking water supplies, wastewater disposal and thermal waste utilisation. Plant operations and the arrangement of project financing complement this wide field of services in the international project business. WTE's projects are generally commissioned by cities and communities in Central, Eastern and South Eastern Europe.

53 53 Segment: Environmental Services The activities of the Environmental Services Segment cover drinking water supply, wastewater treatment and thermal waste utilisation in Austria, the international project business in Central, Eastern and South Eastern Europe, and the operation of two combined cycle heat and power co-generation plants in Moscow. The revenues in this segment amounted to EUR million in 2015/16, EBITDA to EUR 53.1 million. Investments in drinking water supplies for Lower Austria continued to focus on supplying new communities with drinking water and improving the quality and supply security of drinking water for existing customers. EVN again made decisive progress in this area during 2015/16 with the commissioning of its third natural filter plant in Zwentendorf an der Zaya, which naturally reduces the hardness of the water. All three plants improve the water quality for the approximately 200,000 residents in the supply area of the eastern Weinviertel and Marchfeld regions in Lower Austria. EVN also took over the management and operation of the local water supply for the communities of Litschau and Schwadorf and thereby supplies drinking water for the roughly 4,500 residents of those communities. In the international project business, EVN successfully completed two wastewater projects each in Poland and Romania and a waste-water treatment project in Kotor-Tivat, Montenegro, with the transfer of the plants to the customers in 2015/16. One-year test operations at the wastewater treatment plant built by EVN in the Cypriot city of Larnaca also started during the first quarter of 2015/16. EVN was working on the realisation of six projects in Croatia, Macedonia, Montenegro and the Czech Republic as of 30 September Four of these projects all involving wastewater treatment in South Eastern Europe represented new contracts for EVN in 2015/16: In Macedonia, EVN is serving as the general contractor for the construction of three wastewater treatment plants in the cities of Kičevo, Radoviš and Strumica; these contracts have a total value of approximately EUR 20.0 million. The fourth new project covers the construction of a sewage treatment plant in Vodice on the Croatian Adriatic Coast (contract value: approximately EUR 6.0 million). The financing for these projects will be provided by the respective contracting authority with the support of EU subsidies. Preparations are currently underway for the start of construction on all projects, which should take place in 2016/17. In the Czech Republic, the receipt of the building permit was followed by the start of construction for the renovation and expansion of the wastewater purification plant in Prague. The expanded plant will have a capacity to service 1.2 million residents. This project, which EVN is realising in a consortium with partners, is proceeding as planned and completion is scheduled for the second half of 2017/18. The wastewater treatment plant built by EVN in Budva, Montenegro, is also operated by the company. The start of construction on a second wastewater treatment plant in the Buljarica district is currently being coordinated with the city authorities in Budva. STRATEGIC INVESTMENTS AND OTHER BUSINESS EVN s strategic investments represent the logical vertical expansion of the value chain. The investments in Verbund AG and Burgenland Holding AG, which, in turn, holds 49.0% of Energie Burgenland AG, allow EVN to benefit from the companies concentration on renewable electricity generation from water and wind. Rohöl-Aufsuchungs Aktiengesellschaft (RAG) gives EVN a valuable link to oil and natural gas exploration and the natural gas storage business in Austria. The strategic investments of EVN AG are listed below (as of 30 September 2016): 12.63% investment in Verbund AG, of which 11.55% are held directly by EVN AG. The remainder represents the Verbund shares, which were purchased in connection with the capital increase by Verbund AG in 2010 and are held indirectly through WEEV Beteiligungs GmbH, a joint venture founded with Wiener Stadtwerke Holding AG in % investment in Burgenland Holding AG; this company holds a 49% stake in Energie Burgenland AG, a regional electricity and natural gas supply company.

54 % investment in RAG-Beteiligungs-Aktiengesellschaft; this company holds 100% of the shares in Rohöl-Aufsuchungs Aktiengesellschaft, an oil and natural gas exploration and gas storage company. Segment: Strategic Investments and Other Business The Strategic Investments and Other Business Segment recorded revenues of EUR 68.2 million in 2015/16. EBITDA amounted to EUR 45.6 million. The main drivers for this development were a decline in the earnings contribution from Rohöl-Aufsuchungs Aktiengesellschaft (RAG) and a higher earnings contribution from Energie Burgenland. Governmental, Legal and Arbitration Proceedings Bulgaria On 19 March 2014, the Bulgarian regulatory authority for the power industry, DKEVR, initiated proceedings against the Bulgarian power company subsidiary of EVN AG, EVN Bulgaria Elektrosnabdiavane EAD (EVN EC), for the withdrawal of EVN EC s license for the sale of electricity in the regulated market to end consumers based on an allegation of failure to pay outstanding invoice amounts to NEK, the state power company. EVN EC intends to defend its rights in the proceedings in order to stop the in its opinion unjustified proceedings. These proceedings are pending. In March 2013, EVN AG notified the Republic of Bulgaria of its claims under international investment treaties in connection with Bulgaria s breaches of international public law. This dispute arose out of actions by Bulgarian regulatory authorities and governmental agencies in relation to the pricing of electricity and compensation for public obligations in respect to renewable energy. These measures have caused substantial damage to EVN AG and its affiliates. In its notice, and on several occasions since, EVN AG invited the Bulgarian government to enter into negotiations in order to achieve an amicable settlement. Yet, these efforts have so far not led to a resolution of this dispute. Therefore, in order to safeguard its interests, EVN AG has initiated international arbitration proceedings at the International Centre for Settlement of Investment Disputes (ICSID), which forms part of the World Bank group. In November 2016 the hearings have taken place; the written award is scheduled for Power plant Walsum 10 The project company established to construct the Duisburg-Walsum power plant, in which EVN holds an investment of 49.0%, filed an arbitration claim against the general contractor consortium consisting of Hitachi Ltd and Hitachi Power Europe GmbH, on 17 December 2013 and a lawsuit against an insurance company on 10 December The claims are based on damages incurred by the project company due to the delayed completion of the Duisburg-Walsum power plant. They cover lump-sum compensation for the delay, delay-related additional costs, pre-financed repair costs and damages arising from the inability to receive allocations of CO 2 emission certificates as well as claims against an insurance company. The Hitachi consortium filed claims against the project company in a countersuit. In a related lawsuit, the insurance company filed a claim for repayment of previous payments on account. In November 2016 the project company was informed that the tribunal awarded the project company claims in the amount of approximately EUR 200 million, payable by the defendant Hitachi Ltd. and Hitachi power Europe GmbH with regard to the arbitration claim. In the legal proceedings against the insurance company, a partial judgment on the underlying basis for the claim and a partial final judgment were issued in favour of the project company on 1 July These judgments state that the facts of the case point to an obligation of the insurance company to pay compensation for the damage done to the power plant in April Both the insurance company and the project company (the latter with regard to the acceptance of attorneys costs) have filed appeals against these decisions. The amount of the insurance compensation to which the project company is entitled will be decided in separate court proceedings.

55 55 Furthermore, statistics from the power plant s first operating period point to higher specific heat consumption, and therefore lower effectiveness, than promised by the general contractor. A control measurement has since confirmed this conclusion. On 22 October 2015, respective dispute notifications were sent to the general contractor consortium Hitachi Ltd and Hitachi Power Europe GmbH. On 16 December 2015 the project company filed a respective arbitration claim. These proceedings are being pursued. Power plant Dürnrohr EVN AG and Verbund Thermal Power GmbH & Co KG il operate the Dürnrohr power plant based on a contract dated 16 April 1980 and 28 April 1980, whereby one of the two blocks was assigned to each of the contract partners for management and operation. In December 2014, Verbund Thermal Power GmbH & Co KG il terminated the existing management contract as of 30 June 2015 and, in April 2015, stated its intention to permanently shut down its block at the joint Dürnrohr power plant. This decision has subsequently led to an increase in maintenance and operating costs for EVN. EVN takes the view that this cancellation is legally invalid because the existing contract was concluded for the technical service life of the equipment in the Dürnrohr power plant and therefore remains unchanged and in force. EVN has therefore filed an action for a declaratory judgment with the Commercial Court in Vienna. These proceedings are being pursued. WTE Budva In Montenegro a local subsidiary of WTE Wassertechnik GmbH, a project company organised under the laws of Montenegro, was charged with the task of planning and constructing a waste water treatment plant in Budva. This project was planned following a PPP structure and is in full operation. In mid-january 2016, one of the managing directors was arrested and released two days later. Lacking written protocols or statements from any authority at this point in time it cannot be excluded that the alleged offence relates to anti-bribery regulations. Except as disclosed above, there are no, nor have there been, any governmental, legal or arbitration proceedings (including any proceedings which are pending or threatened of which the Issuer is aware) during the last 12 months which may have, or have had in the recent past, significant effects on the financial position of profitability of EVN or EVN Group. Investments EVN's investment strategy calls for a clear focus on the home market of Lower Austria. The related projects cover EUR 1 billion of investments in network infrastructure, renewable energy and drinking water supplies over a period of four years. EVN's focus will be placed on network investments to transport the growing feed-in volumes from renewable energy generation and to protect network stability. The primary goal for this programme is to guarantee supply security for EVN's customers. Capital expenditure was EUR 7.2 million, or 2.2%, lower year-on-year at EUR million in 2015/16. In the Generation Segment, investments continued to focus on the expansion of wind power capacity in Lower Austria. The completion and commissioning of the Paasdorf-Lanzendorf windpark raised the available wind power capacity by roughly 19 MW during the reporting year and increased EVN's total wind power generation capacity to approximately 268 MW. However, investments in the Generation Segment were lower in 2015/16 due to the scheduling of individual projects. Investments in the Energy Trade and Supply Segment were directed primarily to the expansion of EVN's district heating network as well as the construction of local heating plants and biomass heating plants. The Network Infrastructure Austria Segment continued its high level of investments, but the volume was lower than the previous year. The focus remained on the new construction or expansion of transformer stations and the expansion of the 110 kv power lines. In the Energy Supply South East Europe Segment, investments concentrated on the further reduction of network losses. The expansion of natural gas supplies along the Dalmatian coast in Croatia also continued. Investments in this segment increased in comparison with the previous year.

56 56 The Environmental Services Segment concentrated primarily on investments in drinking water supplies, in particular on the construction of natural filter plants to improve the quality of the drinking water in Lower Austria by natural means. Another focal point involved investments to improve the performance capability of the pipeline networks. The diversification of financing instruments and partners is a key component of EVN's financing strategy. Good business relations with regional, international and multilateral banks are therefore particularly important, as is flexible access to national and international investors over the capital market. For funding purposes EVN makes use of bonds issuance, private placements and promissory note loans as well as bank loans. Furthermore, as of the balance sheet date 30 September 2016, the EVN group liquidity reserve consisted of liquid funds/assets and short-term securities in the amount of EUR million (previous year: EUR million). Moreover, EVN had EUR million of contractually agreed and unused syndicated lines of credit (previous year: unused lines of credit