Good morning, ladies and gentlemen, and welcome to EVN's results for the first half of the 2023-2024 financial year. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to Stefan Szyszkowitz.
Yeah, good morning. Welcome, everybody, to EVN's conference call on the results for the first half year of this current financial year. The first six months of this financial year were again marked by very mild weather conditions. This March, for example, was by far the warmest March in Austria's measurement history. Temperatures in all our three core markets were significantly warmer than both the long-term average and the previous year. In turn, water flows in Austria, North Macedonia, and Germany developed very positively and exceeded the long-term average in each case. In Austria, wind conditions were also above the long-term average and well above last year's level. In Bulgaria, however, wind supply remained slightly below the previous year. We are also still observing changes in customer behavior towards a reduction in energy consumption through energy-saving measures and increasing own generation volumes from customer-operated photovoltaic equipment as well.
In addition to the weather and consumer-related effects, wholesale market prices continued to decline. Thanks to our intense investment in renewables and the good wind and water conditions, we can report a robust business development for this reporting period. As of the end of this March, we had an installed wind power capacity of 478 MW, and we expanded our photovoltaic capacities to roughly 80 MW. I also confirm our total annual investments, which will remain within the level of EUR 700 million-EUR 900 million. Lower Austria will account for around three-quarters of this, which almost half earmarked for the network's infrastructure. Let me now continue with the key financials for the first half year. In the first six months of the current financial period, group's revenue was down by 70.7 year-on-year to EUR 1.8 billion.
The main reasons for this development were the lower valuation effects from hedges in Austria due to the downward trend in wholesale prices. Additionally, the reduced use of our Theiss power plant for network stability, as well as price and volume effects in gas network volumes negatively affected revenue. In Southeast Europe, revenue was negatively affected by the drop in electricity prices and the reduction in network tariffs. In Bulgaria, which reflects the regulatory adjustments of the overcompensation of additional costs for covering network losses in the previous year. In addition, revenue at the international project business also declined in a year-on-year because of the already largely completed wastewater treatment plant in Kuwait.
The cost of electricity purchases from third parties and primary energy expenses were down year-over-year, mainly due to the declining wholesale prices and lower procurement volumes for electricity in Southeast Europe and lower primary energy costs for electricity and heat generation. The cost of materials and services also decreased and reflected the development of revenue in the international project business. Personnel expenses increased by 16.8% compared to prior year, which reflects the necessary increase in workforce and adjustments according to the collective bargaining agreements as well. Other operating expenses went up by 12.6%, containing an impairment loss on the outstanding receivables from the project in Budva, which was already recognized in the first quarter of this reporting period.
The share of results from at-equity accounted investees improved, but it is still negative with EUR 42.9 million in the reporting period after minus EUR 143.3 million in the previous year. The main factor for this development is an improved but still negative earnings contribution from the supply company EVN KG. Declining gas tariffs led to a depreciation of natural gas inventories that were produced in the past as a strategic reserve to ensure supply security for our customers. The earnings contribution from EVN KG in the reporting period totaled minus EUR 128.5 million after minus EUR 223.1 million in the prior period. In total, group EBITDA amounted to EUR 453 million. Scheduled depreciation and amortization increased by 5.3% year-over-year, reflecting our higher investment program. Hence, group EBIT totaled EUR 281.6 million.
Financial results slightly improved to minus EUR 25.1 million, mainly due to the better performance of our fund for pension obligation. In addition, last year was negatively affected by foreign exchange effects. In total, we generated a solid group net result of EUR 199.3 million in the first six months of this financial year. Now, let's move on to the next slide, which provides information regarding the group balance sheet structure. Balance sheet total decreased by 7.2% compared to financial year-end 2022/23. The main factors for this development are the decrease in other investment that mainly resulted from the share price of Verbund at the end of March 2024, the declining development of equity accounted investees, and the reduction in trade receivables from EVN KG from liquidity settlement by the EVN group and investments in cash funds, which was mitigated by an increase in receivables from hedging transactions.
As of the end of March, EVN's net debt amounted to EUR 1.4 billion and was at the same level as the end of September 2023. Correspondingly, gearing ratios stood at 21.8%. Our financial flexibility remains solid. As of the end of this March, we have contractually committed undrawn credit lines in the amount of EUR 786 million. Our declared goal is to maintain a solid A category ratings in the future. To achieve such ratings, we are strictly monitoring the adjusted target ratio of both our rating agencies. Therefore, we use the net debt to FFO ratio as a KPI to manage our financial performance, investment, and capital structure. Currently, the ratio is about 1.1. With growing investments over the coming years, the ratio will slightly increase. However, our aim is to keep net debt to FFO within a range of 1.5-2 times.
Just recently, both rating agencies confirmed their view on EVN's creditworthiness. Moody's reaffirmed its A1 rating with stable outlook in April, and Scope again rewarded a rating of A plus stable outlook in May. On the next slides, I will present the developments of our segments in more detail. First, the energy segment. This reporting period was characterized by significantly mild temperatures in all our core markets. Hence, energy volumes to end customers dropped year-on-year. This development was intensified by the challenging framework conditions we are currently confronted with, particularly as the sales company KG. Increasing competition as well as energy-saving efforts by our customers and their growing own generation from their photovoltaic systems have further intensified the decline in energy sales. Hence, volume forecasts are becoming more and more difficult. In the first half year, revenue dropped to EUR 454.2 million.
The main factors for this development are, on one hand, lower wholesale prices and the resulting lower valuation effects from hedges. On the other hand, the reduced use of our power plant Theiss. Operating expenses decreased year-on-year by 14%, which mainly reflects lower primary energy costs for electricity and heat generation. The earnings contribution from equity accounted investees amounted to minus EUR 122.6 million after a loss of minus EUR 214.4 million in the previous year. This is mainly resulting from the supply business in EVN KG. In particular, the supply company suffered from declining wholesale market prices, which led to lower gas tariffs and necessity and impairment of natural gas inventories by EUR 61 million that were produced in the past as a strategic reserve to ensure supply security. The earnings contribution totaled to minus EUR 128.5 million in the reporting period.
In the previous year, it amounted to -EUR 223.1 million. In total, segment EBITDA amounted to -EUR 53.6 million and EBIT totaled -EUR 63.3 million. Based on these developments in the first six months of this financial year, we had to adjust the outlook for the energy segment. The write-down of natural gas inventories required at the end of March and the challenging framework conditions will have a negative impact on the sales company EVN KG. Hence, the return to a positive earnings level, which was originally anticipated for this financial year, will be delayed. Let us now turn to our generation segment, which has shifted almost entirely to renewable energies over the years. The shares of renewable generation rose to 83% in the reporting period. This is a historic high. This underlines our efforts to support the energy transition.
The remaining non-renewable part comprises our generation plants and our DICE power plant, which is only used upon request of the Austrian network transmission operator to stabilize the grid. Electricity generation volumes in the segment increased by 18.1% year-on-year due to the rise in renewable generation volumes. The main reason for this positive development is the year-on-year increase in wind and water flows and the expansion of renewable energy capacity. Volumes from thermal energy sources further declined year-on-year due to a further reduced use of our DICE power plant by the Austrian network transmission operator for network stabilization. As you know, the continuous expansion of wind capacity is a key pillar of our Strategy 2030. Our focus on realizing projects in Lower Austria and the legal framework in Austria enables us to develop and realize profitable projects.
To give a better understanding, we share additional information on the remuneration of our wind parks. A new slide is included in today's presentation and in our investor relations presentation. We currently have a total wind capacity of 478 MW. All wind parks are in Austria apart from a 16-MW park in Bulgaria. Historically, all our wind projects were realized under the feed-in tariff scheme of the Austrian Green Electricity Act, which provided for a fixed remuneration for 13 years. 47% of our wind capacities are still within such a feed-in tariff scheme. The next wind park to expire from the feed-in tariff will only be in October 2031. The remaining expiries will be between 2033 and 2043. The fixed feed-in tariffs for the individual parks range between EUR 81-EUR 95 per MWh.
30% of our wind feeds are already expired from the surplus scheme and are now being operated as merchant plants. We hedge up to 80% of the plant production on a 12-18-month rolling forward basis. The remaining 23% of our wind capacity are governed by the Renewable Energy Expansion Act from 2021, which is now the valid legal framework in Austria. It is a market premium system, which provides for a guaranteed floor. The floor for our project ranged between EUR 82-93 per megawatt hour. The market premium system also foresees that results gained through above floor prices stay with the company. With this, I will continue with the financial developments in the generation segment. Revenue decreased despite higher production volumes by 3.8% to EUR 243.9 million. The main reason for this development was declining market prices.
Operating expenses were up year-on-year because of inflation effects. Higher personnel expenses due to the increase in workforce, which is related to the capacity expansion and higher costs for electricity purchases. In contrast, the energy crisis contribution on electricity dropped to EUR 10.6 million compared to the same period last year as no contribution was due in the second quarter of this financial period. This January, the Austrian government announced an amendment of the law. The threshold, which includes eligible investment, was raised to EUR 200 per megawatt hour. Hence, we do not expect this to result in any further financial obligations. The earnings contribution from at equity accounted Verbund Inn Kraftwerke also increased year-on-year. All in all, EBITDA amounted to EUR 147.1 million. Considering a higher scheduled depreciation amortization because of our investment program segment, EBIT stood at EUR 123.7 million.
We confirm the given outlook on the generation segment. EBIT is still expected to be below the previous year's level as the recent downward trend in electricity market prices continues. Let's continue with this network segment. The mild weather conditions and the changing consumer behavior in terms of energy savings on one hand and the increased proportion of consumers on the other hand also impacted our network segment. Because of these developments and the lower use of our Theiss power plant for network stabilization, network distribution volumes for electricity and natural gas decreased year-on-year. Despite the lower distribution volumes, segment revenues increased to EUR 367 million due to the higher system network tariffs for electricity, which compensated lower revenue from natural gas. A positive revenue contribution was also recognized by cable TV, internet, and telecommunication services.
Operating expenses decreased due to lower upstream network costs because of decreased tariffs. In total, EBITDA was up to EUR 177.8 million. Taking into account higher depreciation amortization due to the higher investment level, EBIT totaled EUR 94.8 million. As of the beginning of this year, the new regulatory period for electricity distribution network became effective. In the appendix of this presentation, you will find an overview of the current regulatory parameters for both the electricity and the natural gas distribution network. With the beginning of this calendar year, E-Control adjusted system network tariffs for household customers. Network tariffs for natural gas decreased by 15.2% and for electricity increased by 12.7%. The latter is mainly driven by costs for network losses. After the first six months of this financial year, we confirm the outlook for the network segment. EBIT is expected to be slightly below last year's level.
Let's move to the Southeast Europe segment. Electricity generation volumes in the segment decreased year-on-year. Water flows in North Macedonia were above the long-term average but still below the high level of the prior year. Energy sales volumes slightly declined compared to the prior year, mainly because of the high temperatures in Southeast Europe, which were also well above the long-term average in the reporting period. In Bulgaria, temperatures were even warmer than last year. In contrast, network distribution volumes increased due to higher sales volumes to household customers in North Macedonia. Revenue decreased to EUR 746.5 million due to the downward trend in electricity prices and lower network tariffs in Bulgaria. Delays are used to offset the overcompensation of costs from network loss coverage in the prior year in accordance with the regulatory methodology.
Corresponding to the development of revenue, operating expenses are lower due to a decreasing cost for third-party electricity purchases and energy carriers and lower natural gas procurement costs for the co-generation plant in Plovdiv. All in all, EBITDA amounted to EUR 160 million. In segment EBIT totaled EUR 74.8 million. We also confirm the given outlook for the Southeast Europe segment. Based on the first half year, EBIT for this segment is expected to be at the upper end of a range between EUR 70 million and EUR 90 million in this financial year. Finally, an environment segment. In our international project business, we are currently working on nine projects. At our project in Kuwait, we reached the peak in the summer of the previous year. The wastewater treatment plant was completed at the end of December, and the first test run was successfully finalized.
The second part of the project, which relates to the infrastructure of the pipe system, is also about two-thirds complete. I would also like to inform you today about the status quo of our intention to divest WTE. On the fourth of April, we announced the termination of the structured sales process. This announcement was necessary as all bidders had either withdrawn their interest in the acquisition of WTE or were rejected by us during the process. We are now evaluating the implementation of further strategic options as it remains unchanged for the EVN group to focus on its energy business in the future. Against the backdrop of all these developments, revenue in this segment decreased year-on-year to EUR 209.3 million. This is a result of the advanced project status in Kuwait. Correspondingly, operating expenses declined.
In addition, an impairment loss of EUR 22.5 million was recognized on the outstanding receivables from the project in Budva in the first quarter of this reporting period after the decision of the Geneva Court of Arbitration. In total, segment EBITDA dropped to EUR 10.6 million, and EBIT amounted to -EUR 1.2 million. Financial results nearly matched last year's level and stood at -EUR 30 million. All in all, resulting in foreign income tax amounted to -EUR 14.2 million. Based on the business performance in the first six months of this financial year, we had to adjust the outlook of the environment segment. Results are expected to be below previous year's level. The next slide shows the development of our group cash flows. Gross cash flow was lower year-on-year at EUR 518.3 million.
The main drivers for this development were lower earnings recorded in the reporting period, non-cash earnings components in particular related to the earnings contribution from EVN and KG, which are still negative in the reporting period but improved compared to last year, and higher dividends from equity accounted investees. Cash flow from operating activities totaled EUR 414.9 million, reflecting the development of working capital. Please also consider last year's negative effect caused by the liquidity settlement for EVN and KG and the related higher capital commitment for working capital. Cash flow from investing activities was positive at EUR 49.7 million. The increased investment level was compensated by the sale of cash funds. The high investment was also contrasted by higher construction and network subsidies in the network and heating business.
The cash flow from financing activities amounted to minus EUR 446.3 million and included scheduled repayments and the dividend payment for the previous financial year. The net change in cash and cash equivalents amounted to EUR 18.2 million. As already mentioned, EVN has committed undrawn credit lines of EUR 786 million as of the end of March. As we concluded a EUR 500 million revolving credit facility in May in order to replace the EUR 400 million facility, which should have become due next year. Let's come now to the outlook for this current financial year. After the first six months of this financial year, we confirm our outlook for this financial year. Under the assumption of a stable regulatory and energy policy environment, we expect the group net result for this current financial year to be within the range of EUR 420 million-EUR 460 million.
You may also find an overview of the outlook of all segments in the appendix of this presentation. Mid of May, Verbund paid its dividend for its 23rd financial year. The earnings contribution amounted to EUR 182 million, which exceeds last year's dividend by EUR 24 million. Please keep in mind that the dividend is already included in our guidance for the full year. Additionally, I again want to highlight our dividend policy. Future dividends will equal at least EUR 0.82 per share, and we are committed to let our shareholders proportionally participate in additional earnings growth. In the midterm, we are aiming for a payout ratio of 40% of group net result. As already mentioned at the beginning of this presentation, total annual investments will be in the range of EUR 700 million-EUR 900 million. The core areas are investments in network infrastructure, renewable generation, and drinking water supplies.
Finally, I would like to inform you that we plan a virtual event for investors and analysts in early October. The energy future requires various initiatives and innovations to make it happen. We would like to inform you on EVN's positioning and how EVN will engage and benefit from these opportunities. Early October, we will also give you an update on our midterm financial ambitions. Finally, the new executive board team will be complete. We will then introduce you to our new CTO and new CFO. That's the end of my presentation. I look forward to answering your questions.
Ladies and gentlemen, if you would like to ask a question, please press nine followed by the star key on the telephone keypad. If you wish to cancel or withdraw your question, please press nine followed by the star key again. So please press nine now to state or ask your question. Thank you. All right. The first question is coming from Patrick Steiner from Kepler Cheuvreux.
Good morning. It's Patrick speaking. Two questions from my side. The first one would be on EVN KG. I mean, you mentioned a generally more difficult environment based on higher competition as well as customers' own electricity generation through their own PV equipment. Could you give us a bit more background information on these two points and their impact on the business? This would be the first one. The second one is, I mean, given that you confirmed your full year guidance and that the Verbund dividend in the amount of EUR 182 million should be reflected in Q3, why are your expectations on the second half of the year so low? I mean, if I subtract the H1 net result and the Verbund dividend from your guidance, I arrive at roughly EUR 40 million-EUR 80 million for H2, which seems quite, quite, quite low, right?
Okay. Thanks a lot for the two questions. First of all, yeah, the high energy prices in the last 24 months resulted in a strong surge for photovoltaic installations. Today, in our grid area in Lower Austria, there are more than 100,000 private photovoltaic installations done. This is, of course, influencing the consumption by our supply company because of this change in behavior. And there is an additional effect regarding around 6% on the gas sales side, yeah, coming from lower consumption from households customer in the consequence of the warm weather.
So we have on the electricity and on the gas sales side, yeah, a change in customer behavior in this ongoing current year, and which we also expect will influence the wholesale prices during the year, especially in the summer season, much more than we have expected three or five years ago. Therefore, the kind of value of energy produced in time during the day in the summer period will be less valuable, the energy production, than it was in the past. And if you take over this energy and sell it on the market, you also are not able to gain any additional kind of money anymore. Therefore, there's a change in the structure taking place. Of course, if you look on the last 24 months, you also see that the strong surge on wholesale prices led to higher end customer prices. This was coming with a certain delay.
Now when wholesale prices sharply were going down, this was also, of course, supporting strong competition. Also, with the new regulatory framework and the legislation, which is not allowing us to give our customers a longer contract than 12 months, we have only two ways to service our customers. Either with a 12-month contract or with a float, which is following a monthly pricing. So these are the two main dimensions which we can offer to our sales sides. On the other side, we have the issues regarding prognosis on procurement. So this is the situation which we are facing, which will change also a lot of positioning of the group in the relationship to energy procurement in the future.
And if you look on the second question regarding our expectation from this year, I said before, I confirmed our December outlook, which tried already to include Verbund's dividend in an expected level. And now, as I mentioned, it's some EUR 24 million higher. But we also didn't see this necessity to reevaluate our gas inventory due to this change of gas market prices. So these are two factors which are extraordinary factors which were influencing our overall expectation for this year. And just take into consideration, our industry is strongly framed by the winter half of the year. The second half is where we are only able to earn less money than in the first half year.
Okay. Thank you very much. Very clearly. Do you expect any further negative effects from the natural gas storage regulation?
If you look on the market since April, yeah, gas prices on wholesale markets have increased again. So in March, it might be has been the lowest point in these years of energy wholesale prices for gas. And therefore, I don't see this in the near future.
Okay. Perfect. Thank you very much.
Ladies and gentlemen, if you have any further additional questions, please press nine followed by the star key now. And the next question comes from Teresa Schinwald from Raiffeisen Bank International.
Hello. Good morning, everyone. I've got three questions. The first one is about the story that has been resurfacing recently. It's concerns about gas supply to Austria following various verdicts by arbitration tribunals. Could you remind us of your supply strategy and any security measures you're taking when it comes to gas?
Okay. This is a question which is heavily debated in the Austrian public. There are clear opinions from the regulatory authority that they don't see a crisis for gas supply in the upcoming winter. We can confirm this for our customers because our gas storage facilities are on a historic high at the end of May. In comparison to previous years, we are on a higher level on stored gas in the facilities than we have been then. Therefore, we expect that our gas storage facilities in Austria will be two months earlier on this kind of level than it has been the last year. From this point of view, there will be enough gas stored in Austria to overcome any kind of restrictions in the upcoming winter. The general situation is that we, of course, are buying gas from different suppliers. We are not importing ourselves. Therefore, there is a variety of gas suppliers in the market.
For us, it's more a question of the price, not on the volume. And EVN AG, as the company, has no long-term gas supply contract anymore. Only EVN KG is having such a contract which is running out in a couple of years.
Thank you very much. Another topic that has been in the media because other Austrian utilities have terminated offtake contracts for private PV installations, which seems rather harsh. And I assume Austrian utilities have different contract structures, actually. So at EVN, the situation might be different. But how is the situation here with the end customers? And what changes are you expecting for the whole market, probably also in coordination with the regulator?
Can you just rephrase it, Teresa? I was not listening.
Yeah. Sure. So it is, what's the situation with the private PV installations at the household customers?
Okay. I got it. Teresa, I got it. Yes. Of course, this is a big issue, yeah, because at the beginning, when PV installation were more for expert than a broad-used customer production facility, there were tariffs which were helping, yeah, these kind of PVs to get them into the market, yeah? So it was more or less, "We are taking over the electricity to the price you are paying for the electricity used in the month," yeah? It was working quite well. But with this change of structure as we are seeing now that due to the oversupply of photovoltaic prices, the short-term value of this energy has completely dropped. Of course, the infrastructure is changing. We are only giving our customers now any more contracts which are more or less affiliated to the monthly pricing of energy. And then it's a 0.7 relationship to that, yeah?
So the price we are offering to our customers is now EUR 0.0403 per kWh. So the value of the short-term production of photovoltaic is mainly in the own consumption. And this is, by the way, also now how the stakeholders like the Photovoltaic Association is now claiming. Photovoltaic on private level always has been meant, yeah, to support the own consumption, not to participate in the market because then you have to get a market price for it.
Okay. That's very good. And the last one, it's related also to my usual question about an order backlog in the project business. It's also what's your take on the current interest rate environment if you see a slowdown in project activity or tenders coming up? If you could give us some color here.
Yes. As I mentioned before, we are working on nine projects internationally. Currently, the volume is EUR 725 million. Of course, there are tenders going on. And we also see some support. There's also in Austria now this kind of regulation in the future that you're not allowed to put the sewage anymore on the fields. It will have to be effective from 2033 on. So therefore, I see that there will be a demand, yeah, for sewage waste incineration coming up because there will be a new standard in Europe regarding the treatment of this, yeah? So I see an increasing demand for this kind of facilities. And WTE will participate in tenders for this kind of facilities.
Thank you very much. Thank you.
Ladies and gentlemen, if you have any further questions, please press nine followed by the star key now. Thank you. And the next question comes from Richard Alderman from BTIG.
Richard, we don't hear you.
Hi. Can you hear me?
Yeah. Not so good. Please.
Are you in the subway? Can you hear me now?
Yeah. Much better. Thanks.
Sorry. Apologies. I had problems with my headset. Just on the subject of WTE and the announcement you made in April that you've not had any offers for 100% of the business, on the answer you just gave to the last question, what are your options now with that business? Would you consider selling off projects individually? Will you scale it down over time? Or it sounds like you're still obviously active in the projects you've got on the slide. But is the intention to make it more focused as a European business or to keep it multi-international? Is there any way that that process of disposal will be reenacted? Are there any other assets that you're considering disposing of or farming down, such as renewable assets? That's the first question. Then second question, your guidance towards the upper end of the range of EUR 70 million-EUR 90 million in Southeast Europe is probably as high as you've achieved in the last decade. What's the cap on that being higher in the future? Is there much scope for that to grow over the next couple of years?
Okay. Thanks a lot. A couple of good questions. First of all, we are looking for options, yeah, for WTE. Yeah? As you mentioned, the 100% on the basis of the 30th of September 2023 is not possible. One of the arguments from some of the parties interested in was how to charge the Kuwait business.
As I tried to mention before, we are quite optimistic that the Kuwait business, which is on the sewage side already done and completed, and on the pipe side, two-thirds are done, will be mature in 2025, 2026. Therefore, this is not such a long period anymore. What we're going to look is that we look on the different parts of WTE and see if there's an interest in the market. What we have seen is special interest on the European part of the business. So maybe this is one of the options to exit the business, to partner it, to find strategic investors in part of the business. We are looking now on different kind of interest. What is clear is that we don't want to scale it further up, yeah, because this would have been the other option. But we don't see this as a future.
WTE on EVN's group's kind of investments and also on the balance sheet, we see their limitation. So therefore, we want to exit, yeah, this kind of business in time. We hope that we will get some feedback from interested parties and can make a decision during the year 2024, beginning of 2025, yeah? So this is the situation which we are seeing there. The Southeast business last year has been an extraordinary historic situation due to the support from state aid. And of course, they scale it back now. And therefore, this kind of outlook which we raised in the capital markets day last October that we expect on the midterm around EUR 70-90 million, this is the more moderate kind of realistic expectations for the group.
What we try to develop there is also not just a grid business as it is but also to combine it with renewable energy because we see on a group level also a risk diversification by renewable production in different geographic regions, yeah? And the big question behind is we have in the capital markets the division of this 2030 investment with the ability also to take a higher debt to finance these investments but then also a higher group result which should be above EUR 400 million over the last next year. So this should give a sound financial policy for potential investors. And what I also tried to mention is we see a certain chance also to give capital markets a clearer picture, not just for the next year but for the next two and three years. And we will do this after the budgeting process in September.
So in October, in this virtual conference, we will try to give actual new information what we see for the next two-three years up to 2030. So then it should be quite a clear picture also for long-term investors.
So thank you for that answer. That's very helpful. So with that answer in mind and with regard to the fact that you're looking ahead at your budgets and presenting that in October, what would be the reasons why you could raise the base dividend of EUR 0.82? What could draw you to a higher dividend payment this year?
Richard, we gave a midterm dividend policy in December. I reconfirmed it now. Let's see how the half-year is now developing. And then let's talk about real figures, yeah, which are the basis for the dividend of this ongoing year, yeah?
Okay. So does that mean you will give us some guidance in October?
I will try to give you guidance and understanding how the half-year is developing now so that we have then a complete picture of the financial year. But due to restrictions also of capital markets and the capital markets regulation, first, the boards have to decide, yeah? Then we go public. And then we can define it in detail, yeah? But what I confirmed is the EUR 0.82 as a base dividend on basis of the expectation of this EUR 420 million-EUR 460 million as we did in the past and which I confirmed today.