Economic development  [Certified Content]

The sales revenue in the Electricity segment, which comprises electricity production, electricity trade and electricity distribution, rose by 12.7 % to € 2,023.3 million. This increase can be attributed to higher wholesale prices, the rise in contract prices and expanded sales in all core markets. The Electricity segment contributes approx. 82 % to total sales.

The EBIT only increased slightly by 0.2 % to € 251.8 million. Due to the marked drop in own production from hydropower compared to the previous year, greater electricity volumes had to be purchased on the electricity trading markets at increased prices. On account of the high level of competition, the purchased volumes had to be sold at a low profit margin. The Electricity segment generated around 78 % of the group EBIT.

Return on capital employed (ROCE), the yield on interest-bearing capital, was increased to 9.0 %. Although the result deteriorated slightly, significant debt clearance did lead to a 17 % reduction in capital employed to € 2,527.5 million. As a result, profitability within the Electricity segment was improved once again.

Investments in plant, property and equipment were up on the low level of the previous year at approx. € 40.0 million. Investment and renovation projects in the generation area essentially focused on the power descent of Kaprun, the commencement of construction activities for the Leoben power plant (approved: 03 July 2003, turning of the first sod: 22 September 2003), the continued implementation of the current automation concept as well as the completion of repair measures following the floods in summer 2002. Investments in the Electricity segment accounted for approx. 52 % of the overall investment volume.

The continuation of the early-retirement option led to a 4.8 % reduction in the number of employees to 2,111. Approx. 79 % of the group’s staff is employed in the Electricity segment.