VERBUND AG

Quarterly Report • Nov 6, 2019

Sustainable solutions for generations to come. Our drive. Our energy.

Interim report quarters 1-3/2019

At a glance
Report of the Executive Board
Investor relations
Interim Group management report
Business performance
Opportunity and risk management 16
Segment report 17
Events after the reporting date 22
Consolidated interim financial statements 23
Income statement 23
Statement of comprehensive income 24
Balance sheet 25
Statement of changes in equity 26
Cash flow statement 28
Selected explanatory notes 30
Responsibility statement of the legal representatives 46

At a glance

• Substantial earnings improvement due to higher average electricity sales prices, good water supply and larger contributions from the grid business resulting from additional temporary revenue
• Lower debt and greater financial flexibility thanks to significantly improved cash flows
• VERBUND shares perform well in quarters 1–3/2019 (+34.8%), markedly outperforming both the ATX (+9.6%) and the DJ STOXX Utilities (+20.6%)
• VERBUND moves back up into the ATX five based on its free float capitalisation
• Update to 2019 earnings forecast: EBITDA now projected to reach between approx. €1,190m and €1,240m and the Group result between approx. €540m and €580m

	Unit	Q1–3/2018	Q1–3/2019	Change
Revenue	€m	2,080.7	2,663.6	28.0%
EBITDA	€m	678.4	946.1	39.5%
EBITDA adjusted	€m	677.7	946.1	39.6%
Operating result	€m	439.9	675.9	53.6%
Group result	€m	282.8	450.9	59.5%
Group result adjusted	€m	277.6	453.3	63.3%
Earnings per share	€	0.81	1.30	59.5%
EBIT margin	%	21.1	25.4	–
EBITDA margin	%	32.6	35.5	–
Cash flow from operating activities	€m	542.1	893.8	64.9%
Additions to property, plant and equipment (excluding business acquisitions)	€m	166.5	230.8	38.6%
Free cash flow before dividends	€m	389.0	629.9	61.9%
Free cash flow after dividends	€m	210.9	451.8	114.2%
Average number of employees		2,739	2,762	0.8%
Electricity sales volume	GWh	44,365	47,562	7.2%
Hydro coefficient		0.96	1.02	–
	Unit	31/12/2018	30/9/2019	Change
Total assets	€m	11,704.8	11,640.2	–0.6%
Equity	€m	5,941.0	6,382.6	7.4%
Equity ratio (adjusted)	%	52.7	57.1	–
Net debt	€m	2,560.7	2,298.2	–10.3%
Gearing	%	43.1	36.0	–

KPIs

Report of the Executive Board

Dear Shareholders,

In quarter 3/2019, the energy market remained encouraging for producers of renewable energy. Prices for CO2 emission rights reached record levels and are still holding firm despite a correction. This is having a positive impact on wholesale electricity prices. VERBUND is extremely well positioned for the current environment. Building on our very good half-year results, we can now look back on a quarter 3/2019 in which performance was highly satisfactory. The solid results are reflected in the current trend for VERBUND shares, which gained approximately 35% between the start of the year and the 30 September 2019 reporting date. The shares' strong performance on the stock market put VERBUND into the ATX five which comprises the five largest companies listed on the Vienna Stock Exchange. VERBUND moved up into the ATX five based on the semi-annual review of free float capitalisation.

Our continued success in reducing debt and the Group's low cost structure have further strengthened performance and improved strategic flexibility, which will allow us to leverage future growth opportunities. Our focus here is on hydropower, specifically on improving efficiency in our power plant projects, as well as on selected new build projects. For example, after inaugurating the Gries hydropower plant in the first half of 2019, in quarter 3/2019 we celebrated the launch of a project to modernise the Jettenbach-Töging power plant in Bavaria. A total of approximately €250m is being invested in the project. After refurbishment, the plant will generate around 700 million kilowatt hours. This represents an efficiency increase of nearly 25%. VERBUND is also placing high priority on executing line construction projects in the regulated high-voltage grid. The biggest project currently underway is the 380-kV Salzburg line. The upgrade is necessary to enable the integration of power from renewable energy sources, which are causing increasing volatility, and to maintain security of supply in Austria. Solar and wind power are gaining in significance given the considerable potential ensuing from the growing marketability of new renewable energy sources. Our projects represent key building blocks in achieving Austria's climate targets, which necessitate developing all renewable energy sources, the infrastructure and storage facilities and investing in energy efficiency.

VERBUND is well positioned for this energy future. We are focusing our efforts on renewable energy, new storage technologies and green hydrogen in cooperation with leading Austrian enterprises. In quarter 3/2019, VERBUND stepped up its efforts in these focus areas, which include VERBUND's energy partnership with OMV. The first joint project to construct the biggest open-space photovoltaic installation in Austria has been contractually agreed. The solar park will be built at OMV sites in Weinviertel/Lower Austria. Commissioning of the first section is planned for quarter 4/2020. VERBUND and OMV are also assessing the options for establishing electrolytic hydropower production. The primary goal is to use the hydropower to hydrate CO2 in order to lower CO2 emissions from industrial plants. Green hydrogen has long been at the forefront of research at VERBUND. For example, one of the world's largest proton exchange membrane (PEM) electrolyser installations will be put into operation at voestalpine in Linz during quarter 4/2019. The PEM electrolyser is rated at 6 MW and is part of the European Commission's flagship H2FUTURE project, which is attracting considerable international attention. The PEM electrolyser project has thus taken its place in the ranks of VERBUND's EU-funded projects that are enjoying substantial international recognition.

The results posted by VERBUND for quarters 1–3/2019 are highly encouraging. EBITDA increased by 39.5% to €946.1m and the Group result was up 59.5% on the previous year to €450.9m. The adjusted Group result rose by 63.3% to €453.3m. A key factor impacting earnings performance was the sharp rise in average sales prices due to high price levels for wholesale electricity. Water supply also showed a positive trend in the first nine months, despite dropping well below the average level in quarter 3/2019. The hydro coefficient for our run-of-river power plants came to 1.02 in quarters 1–3/2019, or 6 percentage points above the prior-year comparative and 2 percentage points above the long-term average. The earnings contribution from the Grid segment likewise improved in quarters 1–3/2019 compared with the prioryear reporting period due to additional temporary revenue, and the good results achieved through our programmes to reduce costs and increase efficiency are showing a sustained impact.

We have adjusted our guidance for full-year 2019. Based on expectations of average levels of own generation from hydropower and wind power in quarter 4/2019 as well as the opportunities and risks identified, we are projecting EBITDA of between approximately €1,190m and €1,240m and a Group result of between approximately €540m and €580m for financial year 2019. In terms of the dividend for financial year 2019, VERBUND is planning a payout ratio of between 40% and 45% based on the Group result after adjustment for non-recurring effects.

Investor relations

Sentiment was mixed on the international stock markets in quarter 3/2019 amid further interest rate cuts, recession fears and trade tensions between political powers. The rate cuts mainly benefitted the US stock markets, whereas issues such as trade disputes, yield curves and concerns about the general economy triggered a significant short-term correction. Ultimately, however, the US benchmark index Dow Jones Industrial finished quarters 1–3/2019 up 15.4%. The Eurostoxx 50 also reported significant gains in quarters 1–3/2019, ending the year up 18.9% compared with 31 December 2018. By comparison, the Japanese benchmark index Nikkei 225 gained 8.7% compared with 31 December 2018 thanks to an easing of trade tensions towards the end of quarter 3/2019. Share prices in the emerging markets performed less favourably. The MSCI Emerging Markets Index lost ground in quarter 3/2019, only managing a slight increase of 3.6% in quarters 1–3/2019.

Contact: Andreas Wollein Head of Group Finance, M&A and Investor Relations Tel.: +43 (0)50 313-52604 Email: investorrelations@verbund.com

VERBUND share price: relative performance 2019

In quarters 1–3/2019, VERBUND shares continued the upward trend observed in 2018 thanks to the favourable market environment for renewable energy producers. Compared with year-end 2018, VERBUND shares gained 34.8% in quarters 1–3/2019 to close at €50.2 on 30 September 2019. The Group's shares thus significantly outperformed both the ATX (+9.6%) and the DJ STOXX Utilities sector index (+20.6%) in quarters 1–3/2019.

Upcoming dates: 2019 annual results: 18 March 2020

KPIs – shares

	Unit	Q1–3/2018	Q1–3/2019	Change
Share price high	€	42.4	55.3	30.2%
Share price low	€	20.0	38.0	90.2%
Closing price	€	42.4	50.2	18.3%
Performance	%	110.6	34.8	–
Market capitalisation	€m	14,737.4	17,440.3	18.3%
ATX weighting	%	5.8	7.4	–
Value of shares traded	€m	1,575.3	3,385.6	114.9%
Shares traded per day	Shares	291,827	388,987	33.3%

Interim Group management report

Business performance

Electricity supply and sales volumes

Group electricity supply GWh

	Q1–3/2018	Q1–3/2019	Change
Hydropower1	22,893	24,265	6.0%
Wind power	584	662	13.4%
Thermal power	870	1,069	22.8%
Own generation	24,347	25,996	6.8%
Electricity purchased for trading and sales	19,521	21,342	9.3%
Electricity purchased for grid loss and control power volumes	4,197	3,118	–25.7%
Electricity supply	48,065	50,457	5.0%

1 incl. purchase rights

VERBUND's own generation increased by 1,649 GWh to 25,996 GWh in quarters 1–3/2019. This represents a year-on-year rise of 6.8%. Generation from hydropower rose by 1,372 GWh compared with the prior-year reporting period. The hydro coefficient for the run-of-river power plants came to 1.02, or 6 percentage points above the prior-year figure and 2 percentage points above the long-term average. Despite lower generation from turbining and increasing reservoir levels, generation from annual storage power plants increased slightly (+0.8%) in quarters 1–3/2019 due to higher inflows.

Hydro coefficient (monthly averages)

VERBUND's wind power installations generated 78 GWh more electricity in quarters 1–3/2019 than in the prior-year period due to consistently windier conditions in Austria, Germany and Romania.

Generation from thermal power plants increased by 198 GWh in quarters 1–3/2019. The Mellach combined cycle gas turbine power plant produced 242 GWh more electricity in the reporting period due to a significant increase in the use of congestion management in quarter 3/2019 compared with the prior year. Generation at the Mellach coal-fired power plant declined by 44 GWh.

Purchases of electricity from third parties for trading and sales increased by 1,822 GWh in quarters 1–3/2019, while electricity purchased from third parties for grid losses and control power declined by 1,079 GWh.

Group electricity sales volume and own use			GWh
	Q1–3/2018	Q1–3/2019	Change
Consumers	9,424	10,819	14.8%
Resellers	20,768	21,373	2.9%
Traders	14,174	15,370	8.4%
Electricity sales volume	44,365	47,562	7.2%
Own use	2,272	2,202	–3.1%
Control power	1,427	693	–51.4%
Electricity sales volume and own use	48,065	50,457	5.0%

VERBUND's electricity sales volumes increased by 3,196 GWh, or 7.2%, in quarters 1–3/2019. The increase was spread across all customer segments. Sales to traders were up by 1,196 GWh and sales to resellers by 605 GWh, mainly as a result of higher sales to domestic customers. Electricity volumes delivered to consumers rose by 1,396 GWh due to higher international sales. Another reason was that starting on 30 September, most of the Romanian sales (which used to be reported under "resellers") will be allocated to this customer segment. With respect to residential customers, our customer base comprised approximately 488,000 electricity and gas customers as at 30 September 2019.

Own use of electricity declined by 70 GWh in quarters 1–3/2019. The decline was attributable above all to lower generation from turbining.

Electricity sales by country			GWh
	Q1–3/2018	Q1–3/2019	Change
Austria	20,437	26,714	30.7%
Germany	20,644	17,830	–13.6%
France	2,310	2,385	3.2%
Others	974	633	–
Electricity sales volume	44,365	47,562	7.2%

Approximately 56% of the electricity sold by VERBUND in quarters 1–3/2019 went to the Austrian market. The increase compared with the previous year's figure of 46% was due to the creation of a separate Austrian price zone as at 1 October 2018. Whereas in 2018, some Austrian customers were still being supplied from Germany, an increasing proportion of those customers were supplied from within Austria in 2019. In addition, electricity generated in Austria is now sold directly in Austria in spot market trading. International trading and sales activities focused on the German market, which accounted for around 86% of all volumes sold abroad in quarters 1–3/2019.

Electricity prices

Futures prices traded in the year before supply. The years stated are the respective years of supply. 2015–2018: Market area Germany/Austria. 2019: Market area Germany or Austria respectively.

Spot prices 2015–2018: Market area Germany/Austria. 2019: Market area Germany or Austria respectively. Average prices. Source: EEX, EPEX Spot

VERBUND contracted for most of its own generation for 2019 on the futures market back in 2017 and 2018. Ever since the split of the joint German-Austrian price zone in October 2018, separate, higher prices have prevailed in Austria. Prices for AT 2019 front-year base load contracts (traded in 2018) averaged €46.6/MWh in 2018, and prices for DE 2019 front-year base load contracts averaged €43.8/MWh. This represents an increase of 44.0% (AT) and 35.4% (DE) compared with the previous year, in which a joint price was calculated in futures trading (€32.4/MWh).

Front-year peak load (AT) contracts averaged €56.8/MWh in 2018 and front-year peak load (DE) contracts traded at an average of €54.0/MWh. Prices on the futures market were therefore up 40.3% and 33.2%, respectively, compared with the prior year (€40.5/MWh).

On both the Austrian and German spot markets, wholesale trading prices for electricity fell below the prior-year levels in quarters 1–3/2019. Average prices for base load electricity declined by 1.6% to €40.1/MWh in Austria and by 8.9% to €38.0/MWh in Germany. Average peak-load prices were down by 5.3% to €45.6/MWh in Austria and by 9.0% to €43.8/MWh in Germany.

Financial performance

		€m
Q1–3/2018	Q1–3/2019	Change
2,080.7	2,663.6	28.0%
678.4	946.1	39.5%
439.9	675.9	53.6%
282.8	450.9	59.5%
0.81	1.30	59.5%

Electricity revenue

VERBUND's electricity revenue rose by €543.9m to €2,157.8m in quarters 1–3/2019. In terms of quantities, electricity sales volumes increased by 3,196 GWh, or 7.2%, year-on-year. Revenue also benefitted significantly from the sharp rise in average sales prices resulting from higher prices on the futures markets for wholesale electricity.

Grid revenue

Grid revenue increased by €41.1m to €412.7m in quarters 1–3/2019 compared with the prior-year period. The revenue increase was largely attributable to higher proceeds from international auctions for crossborder capacity and a rise in domestic grid revenue as a result of tariff increases. By contrast, lower rates for system services fees caused a decline in revenue from system services.

Other revenue and other operating income

Other revenue decreased slightly (by €2.1m) to €93.1m. Higher revenue from the sale of green electricity certificates was counteracted by lower revenue from the sale of gas and emission rights. At €46.8m, other operating income was at approximately the prior-year level.

Expenses for electricity, grid, gas and certificates purchases

Expenses for electricity, grid, gas and certificates purchases increased by €308.8m to €1,293.7m. A total of 743 GWh more electricity was purchased from third parties for trading and sales as well as for grid loss and control power volumes. Higher procurement prices arising from higher price levels for wholesale electricity on the whole also caused expenses to rise. Expenses for electricity purchases thus increased by €284.5m compared with quarters 1–3/2018. Expenses for grid purchases rose by €33.5m, while expenses for gas purchases fell by €4.5m.

Fuel expenses

Fuel and other usage-/revenue-dependent expenses rose by €1.3m to €75.0m. The increase in gas consumption attributable to greater use of the Mellach combined cycle gas turbine power plant for congestion management (for details please refer to the section entitled Electricity supply and sales volumes) was compensated by the decline in gas prices. Despite the rise in procurement prices for coal, coal expenses remained unchanged due to reduced generation at the Mellach coal-fired power plant. The increase in expenses was due in particular to higher expenses for emission rights resulting from the surge in CO2 prices. However, expenses were positively impacted by the end of the depreciation for the coal store at the Mellach coal-fired power plant.

Personnel expenses

Personnel expenses increased by €7.9m year-on-year to €244.1m. The rise in expenses for current employees resulted primarily from the increase of 3.4% in pay rates under the collective bargaining agreement and expenses for new hires at APG (€–8.6m). An update of the assumptions used in the calculation of provisions also caused personnel expenses to rise by €2.5m. With respect to employee benefits relating to pensions and termination benefits ("Sozialkapital"), the increase in personnel expenses was mitigated by the absence of provisions for the company's "Sozialplan" – an agreement concluded between management and the works council for the purpose of mitigating the impact of any employee layoffs – in the thermal segment (€+1.5m).

Other operating expenses

Other operating expenses were down slightly with a decline of €0.6m to €151.5m. This item benefitted from lower expenses for goods and services purchased from third parties as well as from the initial application of IFRS 16 (please refer to the notes to the consolidated financial statements for details on the initial application of IFRS 16). However, higher IT expenses had a negative impact.

EBITDA

As a result of the above-mentioned factors, EBITDA rose by 39.5% to €946.1m.

Depreciation and amortisation

Amortisation of intangible assets and depreciation of property, plant and equipment rose by €24.8m to €269.5m. The increase was primarily due to depreciation of right-of-use assets as required by the newly applied IFRS 16 (please refer to the notes to the consolidated financial statements for details on the initial application of IFRS 16). Depreciation of property, plant and equipment declined slightly compared with the prior year as a result of the lower depreciation base.

Reversals of impairment losses

Reversals of impairment losses in quarters 1–3/2018 amounted to €6.2m and related primarily to the decommissioned power plants in Dürnrohr and Korneuburg. Impairment testing was performed in connection with the conclusion of a disposal agreement. No reversals of impairment losses were recognised in quarters 1–3/2019.

Result from interests accounted for using the equity method

The result from interests accounted for using the equity method rose by €8.7m to €36.4m. The increase was mainly due to the earnings contributions from KELAG in the amount of €34.1m (Q1–3/2018: €29.0m).

Interest income and expenses

Interest income increased by €1.8m to €24.7m compared with quarters 1–3/2018. Interest expenses declined by €7.1m to €86.9m, due in particular to lower interest on bonds and bank loans as a result of scheduled repayments of principal.

Other financial result

The other financial result improved by €8.1m to €10.4m in quarters 1–3/2019, mainly as a result of the measurement of securities through profit or loss in accordance with IFRS 9. Measurement of an obligation to return an interest had a counteracting effect.

Group result

After taking account of an effective tax rate of 21.9% and non-controlling interests in the amount of €66.5m, the Group result amounted to €450.9m. This represents an increase of 59.5% compared with the previous year. Earnings per share amounted to €1.30 (Q1–3/2018: €0.81) for 347,415,686 shares. The Group result after adjustment for non-recurring effects was €453.3m, an increase of 63.3% on the prior-year period.

Financial position

Consolidated balance sheet (condensed) €m
	31/12/2018	Share	30/9/2019	Share	Change
Non-current assets	10,702.7	91%	10,888.3	94%	1.7%
Current assets	1,002.1	9%	751.9	6%	–25.0%
Total assets	11,704.8	100%	11,640.2	100%	–0.6%
Equity	5,941.0	51%	6,382.6	55%	7.4%
Non-current liabilities	3,968.0	34%	4,009.6	34%	1.0%
Current liabilities	1,795.8	15%	1,248.0	11%	–30.5%
Equity and liabilities	11,704.8	100%	11,640.2	100%	–0.6%

Assets

VERBUND's non-current assets increased slightly from the level as at 31 December 2018. With respect to property, plant and equipment, additions of €230.8m were offset by depreciation of €238.1m. The main additions to property, plant and equipment related to investments in the Austrian transmission grid and replacement investments at Austrian and German hydropower plants. Non-current assets rose by €137.4m as at 30 September 2019 due to the initial application of IFRS 16. The decrease in current assets resulted mainly from the use of cash and cash equivalents invested in short- and medium-term vehicles to pay back a bond as well as lower positive fair values for derivative hedging transactions.

Equity and liabilities

The increase in equity compared with 31 December 2018 was mainly attributable to the profit for the period generated in quarters 1–3/2019 as well as the positive impact of the measurement of cash flow hedges on other comprehensive income. These factors were counteracted by dividend distributions and the negative impact on other comprehensive income of the interest rate adjustment in connection with employee benefits relating to pensions and termination benefits (Sozialkapital), which reduced equity. The decrease in current and non-current liabilities was primarily the result of redemption of a bond as well as lower negative fair values for derivative hedging transactions, whereas the initial application of IFRS 16 and higher provisions for employee benefits relating to pensions and termination benefits (Sozialkapital) had a counteracting effect.

Cash flows

Cash flow statement (condensed)			€m
	Q1–3/2018	Q1–3/2019	Change
Cash flow from operating activities	542.1	893.8	64.9%
Cash flow from investing activities	–339.3	–172.2	–
Cash flow from financing activities	–181.2	–742.9	–
Change in cash and cash equivalents	21.6	–21.4	–
Cash and cash equivalents as at 30/9/	50.2	18.0	–64.1%

Cash flow from operating activities

Cash flow from operating activities amounted to €893.8m in quarters 1–3/2019, up €351.7m on the prioryear figure. The increase was largely fuelled by the significant rise in the average prices obtained for electricity sales. Moreover, the hydro coefficient was up 6 percentage points over the prior-year figure to 1.02.

Cash flow from investing activities

Cash flow from investing activities amounted to €–172.2m in quarters 1–3/2019 (Q1–3/2018: €–339.3m). The change compared with quarters 1–3/2018 was mainly due to a higher cash outflow from capital expenditure for intangible assets and property, plant and equipment (€–69.2m), a lower cash inflow from the disposal of intangible assets and property, plant and equipment (€–41.8m) and a higher net cash inflow from investments (€+277.8).

Cash flow from financing activities

Cash flow from financing activities amounted to €–742.9m in quarters 1–3/2019, a difference of €–561.7m. The change was due to higher repayments of financial liabilities (€–606.7m) and a higher cash inflow from money market transactions (€+169.5m) as well as the cash outflow from the repayment of lease liabilities (€–24.5m), which have been presented in cash flow from financing activities since 1 January 2019 based on the initial application of IFRS 16 Leases. At €178.1m, dividend payouts were at the prior-year level.

Opportunity and risk management

Operating result

Electricity generation from hydropower is the main factor that could potentially impact the operating result for the current reporting period, particularly because hydrological conditions cannot be controlled. Fluctuations in the marketing of control power and congestion management can also lead to higher earnings volatility, as can the revenue fluctuations arising from regulatory impacts on grid operations. In addition, changes in the operating environment and possible judicial proceedings could necessitate measurement-related adjustments to VERBUND's assets as well as changes in provisions.

The operating result is impacted by substantial monthly and regional fluctuations in the water supply. Short-term prices thus show high levels of fluctuation, while long-term prices have stabilised. Maintaining security of supply in the increasingly unstable European electricity market continues to necessitate taking frequent, unplanned recourse to conventional reserve power plants.

Moreover, implementation of VERBUND's planned capital expenditure programme depends on a number of uncertain factors, one of which is the long approval times for transmission system expansion projects.

Financial result

The potential extent of fluctuation in the financial result is determined by the following factors: the volatility of investment income, measurement effects on the balance sheet arising from changes in market prices and interest rates, and potential expenses from collateral provided being called in.

Sensitivities

All else remaining equal, a change in the factors shown below would be reflected in a projected Group result for full-year 2019 as follows (based on the hedging status as at 30 September 2019 for generation volumes and interest rates):

• +/–1% in generation from hydropower plants: €+/–1.6m
• +/–1% in generation from wind power: €+/–0.1m
• +/–1€/MWh in wholesale electricity prices (renewable generation): €+/–0.7m
• +/–1 percentage point in interest rates: €+/–0.5m

Segment report

Renewable generation segment

Hydropower, wind and photovoltaic generation technologies are brought together under the Renewable generation segment.

KPIs – Renewable generation segment

	Unit	Q1–3/2018	Q1–3/2019	Change
Total revenue	€m	697.6	965.0	38.3%
EBITDA	€m	418.9	704.3	68.1%
Result from interests accounted for
using the equity method	€m	–0.3	3.5	–
Capital employed	€m	6,527.1	6,488.3	–0.6%

EBITDA for the Renewable generation segment rose by €285.4m to €704.3m. The increase was due mainly to the significant rise in the average prices obtained for electricity sales compared with the previous year. The hydro coefficient for quarters 1–3/2019 was 1.02, up from 0.96 in quarters 1–3/2018. The result from interests accounted for using the equity method for the Renewable generation segment was largely made up of the earnings contribution from Ashta Beteiligungsverwaltung GmbH.

Capital employed for the Renewable generation segment fell by €38.7m to €6,488.3m. The decrease was due in particular to a decline in property, plant and equipment. The recognition of right-of-use assets based on the initial application of IFRS 16 Leases from 1 January 2019 and an increase in working capital had a counteracting effect.

Current information on the Renewable generation segment

Hydropower projects

Regarding the Tuxbach expansion project, work to install the tunnel lining began in quarter 3/2019. In addition, around half of the Zemm-Tux tunnel branch was equipped with a concrete ring lining. Preparations are currently being made for the subsequent injection work. Dismantling work was initiated in connection with converting the Bösdornau power plant, and the Stillupp diversion was decommissioned in quarter 3/2019. Work to reengineer the Zemmbach River will likewise start before the end of the year.

Regarding the Töging/Jettenbach expansion and renovation project in Bavaria, the planning approval notice was issued by the local authorities in Mühldorf on 22 July 2019. All project components were approved as submitted in the application, and an official ground-breaking ceremony was held on 13 September 2019. Contracts to build the turbines, the generators and the steel hydraulic structure were likewise awarded in the reporting period. Moreover, construction continued as planned in quarter 3/2019 at all three sites: the Töging power plant, the canal upstream of the Jettenbach plant and the Jettenbach weir.

Regarding the Graz project to build a new hydropower plant, trial operations were completed in September 2019 and the inaugural ceremony for the plant took place on 9 October 2019.

Regarding the Ybbs rehabilitation project, the dismantling work was carried out on the generator of generator set 2 in the reporting period, and work on the turbines commenced. All of VERBUND's other rehabilitation projects are currently in the tendering or engineering phases.

Wind power projects

In August 2019, VERBUND Hydro Power GmbH took over maintenance and servicing for 12 Enercon E-101 wind turbines (Hollern II and Petronell II wind farms).

Sales segment

The Sales segment comprises VERBUND's trading and sales activities.

KPIs – Sales segment

	Unit	Q1–3/2018	Q1–3/2019	Change
Total revenue	€m	1,524.0	2,139.3	40.4%
EBITDA	€m	81.2	49.7	–38.7%
Result from interests accounted for
using the equity method	€m	0.0	0.0	–
Capital employed	€m	232.9	165.4	–29.0%

EBITDA for the Sales segment declined by €31.4m year-on-year to €49.7m. The main reason for the decrease was the effect on profit or loss of measuring hedging transactions at fair value.

Capital employed in the Sales segment was down €67.5m on the prior-year level, mainly due to changes in working capital.

Current information on the Sales segment

To maximise its success in meeting the variety of challenges arising from current developments in the market and changes in market design – which can be summarised by the keywords of decarbonisation, decentralisation and digitalisation – VERBUND decided, after an intense initial project phase, to reorganize its Sales segment. This ongoing project is based on the basic principle of presenting "one face to the customer". Another aim is to increase profitability in the medium term.

Grid segment

The Grid segment comprises the activities of Austrian Power Grid AG (APG).

KPIs – Grid segment

	Unit	Q1–3/2018	Q1–3/2019	Change
Total revenue	€m	602.4	593.3	–1.5%
EBITDA	€m	157.5	170.2	8.1%
Result from interests accounted for
using the equity method	€m	0.0	0.1	–
Capital employed	€m	1,276.6	1,418.6	11.1%

EBITDA for the Grid segment rose by €12.7m to €170.2m. The increase was mainly attributable to higher grid usage revenues from the auctioning off of cross-border capacity. The lower earnings contribution from control power business had a negative impact on EBITDA.

Capital employed was up €142.0m on the prior-year level to €1,418.6m. The primary cause of the increase was a rise in the net investment in property, plant and equipment and the recognition of rightof-use assets based on the initial application of IFRS 16 Leases from 1 January 2019. Changes in working capital had a counteracting effect on capital employed.

Current information on the Grid segment

Security of supply and congestion management

As in preceding quarters, frequent interventions in power plant operations were again necessary in quarter 3/2019 to ensure system operations. The interventions were mainly needed in the APG control area, but were also required to manage congestion outside of the APG grid, particularly in Germany. Repeated recourse had to be taken to the reserve capacity contracted by Austrian Power Grid (APG) for congestion management purposes to maintain security of supply.

Tariff regulation

An out-of-court settlement was reached in quarter 3/2019 concerning the tariff notice from the 2018 proceedings that had been appealed by the Austrian Economic Chambers (WKO). The complaint was withdrawn on 27 August 2019. The preliminary report on the 2019 cost calculation process conducted by E-Control was delivered on 26 July 2019. APG submitted two commentaries on the report in September. The final tariff notice is expected for the start of quarter 4/2019.

380-kV Salzburg line

On 13 September 2019, the Executive Board of APG approved the motion concerning construction of the 380-kV Salzburg line. Therefore, it was already possible to start the tree felling work and begin setting up the construction site at the beginning of October 2019.

All other segments

"All other segments" is a combined heading under which the Energy services segment, Thermal generation segment, Services segment and Equity interests segment are brought together given that they are below the quantitative thresholds.

KPIs – All other segments

	Unit	Q1–3/2018	Q1–3/2019	Change
Total revenue	€m	162.6	163.4	0.5%
EBITDA	€m	39.8	42.3	6.3%
Result from interests accounted for
using the equity method	€m	28.0	32.8	17.4%
Capital employed	€m	456.9	536.4	17.4%

EBITDA of All other segments increased by €2.5m to €42.3m. This was mainly due to the higher EBITDA (€+4.6m) recorded in the Thermal generation segment. Lower EBITDA in the Services segment (€–1.2m) and the Energy services segment (€–0.9m) had an offsetting effect. The result from interests accounted for using the equity method of All other segments matched the prior-year level and was generated mainly by KELAG-Kärntner Elektrizitäts-Aktiengesellschaft.

Capital employed rose by €79.5m year-on-year to €536.4m, mainly due to changes in working capital and the recognition of right-of-use assets based on the initial application of IFRS 16 Leases from 1 January 2019.

Current information on the Energy services segment

Marketing VERBUND's energy services products

The VERBUND Power Pool registered a significant increase in revenue from demand response operations in quarter 3/2019 compared with the first two quarters of 2019. The return to awarding bids based on the service price makes it much easier to sell power from industrial customers in the automated Frequency Restoration Reserves (aFRR) market.

Regarding the SYNERG-E industrial-scale battery project, which is likewise subsidised by the EU, the first battery storage system was put into operation at the end of quarter 3/2019. The system will help to balance out future power peaks and to compensate for the effects of high-power charging (HPC) stations for e-vehicles on the power system.

SOLAVOLTA and SMATRICS

SOLAVOLTA (VERBUND share: 50%) succeeded in increasing sales in its photovoltaic systems customer segment (small-scale and large-scale systems) by around 65% in quarters 1–3/2019 compared with the prior-year period. The sales figures for storage units rose by 90% in the reporting period compared with the prior year.

SMATRICS (VERBUND share: 40%) added high-profile customers to its managed infrastructure portfolio in quarters 1–3/2019. In addition to outfitting additional sites for ÖBB Infra, Turmstrom and the Hornbach DIY chain, VERBUND also succeeded in winning UNIQA as a customer, including its regional locations.

The SMATRICS approach to the German market focuses on energy suppliers and municipal utilities. At present, services are being rendered for three large enterprises in the areas of project planning, rollout, operation and customer management.

With respect to the public charging network, quarter 3/2019 saw the addition of the last two of the four HPC sites with output of up to 350 kW that were commissioned as part of the EU-sponsored ULTRA-E project. In addition to the connection of SMATRICS' charging network with those of partner companies from the Austrian Federal Electromobility Association (BEÖ), other major international roaming partners were connected as well (Ionity, Innogy, Charge I, Enel, EnBW).

Current information on the Thermal generation segment

In quarter 3/2019, the Mellach CGGT was operated solely for the purpose of guaranteeing security of supply in connection with congestion management. Activation volumes were at a five-year high in the quarter just ended. The Mellach district heating plant was also available for activation of balancing reserves to manage congestion in quarter 3/2019. Establishment of the Mellach site as a centre of innovation is continuing by implementing a variety of additional projects (battery storage units, hightemperature electrolysis, fast-charging stations, etc.).

Current information on the Services segment

In the period from September 2018 to March 2019, VERBUND Services GmbH carried out a project to update its shared services strategy. The project objective was to identify ways to optimise processes and improve quality in shared services. The shared services strategy was last revised in 2015. The following goals were defined in the process: to become more competitive, to improve expertise levels, to take customer requirements into account, to ensure safety in operations and to identify compliance requirements.

Furthermore, a new service centre platform was developed for the intranet in line with the shared services strategy in the interest of customer centricity. The platform has been up and running since April 2019.

Quarter 2/2019 saw the initiation of work to upgrade the e-procurement platform to include leadingedge web-based technologies, including a state-of-the-art online shop to enhance ease of use for all users. The new e-procurement platform will go live in quarter 4/2019.

Since 2006, VERBUND Services GmbH has also been operating an analogue mobile telecommunications system for VERBUND to enable operational communications as well as communication in emergency situations. Work to modernise and convert the existing analogue system to a digital wireless system using a company-specific frequency was initiated in quarter 3/2019. A total of 115 mobile communication base stations and around 500 end-user devices will be upgraded for the Group across Austria by the end of 2020, with no service interruptions.

Current information on the Equity interests segment

KELAG-Kärntner Elektrizitäts-Aktiengesellschaft

In quarters 1–3/2019, KELAG's contribution to the result from interests accounted for using the equity method was €34.1m (Q1–3/2018: €29.0m). KELAG is expected to continue to report stable performance during the remainder of financial year 2019.

Events after the reporting date

There were no events requiring disclosure between the reporting date of 30 September 2019 and authorisation for issue on 22 October 2019.

Consolidated interim financial statements

of VERBUND

Income statement

					€m
In accordance with IFRSs	Notes	Q1–3/2018	Q1–3/2019	Q3/2018	Q3/2019
Revenue		2,080.7	2,663.6	707.5	828.4
Electricity revenue	1	1,613.8	2,157.8	561.8	683.9
Grid revenue	1	371.7	412.7	123.6	124.3
Other revenue	1	95.2	93.1	22.1	20.3
Other operating income		44.6	46.8	17.8	19.3
Expenses for electricity, grid, gas and certificates purchases	2	–984.9	–1,293.7	–397.0	–427.8
Fuel expenses and other usage-/revenue-dependent expenses	3	–73.8	–75.0	–29.8	–29.4
Personnel expenses	4	–236.2	–244.1	–72.1	–74.2
Other operating expenses		–152.1	–151.5	–51.6	–56.2
EBITDA		678.4	946.1	174.8	260.2
Depreciation and amortisation	5	–244.7	–269.5	–81.5	–89.7
Impairment losses		0.0	–0.7	0.0	–0.4
Reversal of impairment losses		6.2	0.0	0.0	0.0
Operating result		439.9	675.9	93.2	170.1
Result from interests accounted for
using the equity method	6	27.7	36.4	6.0	11.0
Other result from equity interests		4.3	2.4	0.7	–0.1
Interest income	7	22.9	24.7	6.9	8.0
Interest expenses	8	–94.0	–86.9	–30.7	–24.5
Other financial result	9	2.3	10.4	2.3	3.8
Financial result		–36.8	–13.0	–14.8	–1.6
Profit before tax		403.2	662.9	78.5	168.5
Taxes on income		–88.3	–145.5	–16.2	–36.3
Profit for the period		314.9	517.4	62.3	132.2
Attributable to the shareholders of VERBUND AG (Group result)		282.8	450.9	55.3	112.7
Attributable to non-controlling interests		32.1	66.5	7.0	19.5
Earnings per share in €1		0.81	1.30	0.16	0.32

1 Diluted earnings per share correspond to basic earnings per share.

Statement of comprehensive income

					€m
In accordance with IFRSs	Notes	Q1–3/2018	Q1–3/2019	Q3/2018	Q3/2019
Profit for the period		314.9	517.4	62.3	132.2
Remeasurements of net defined benefit liability	10	–58.1	–87.6	–51.0	0.4
Other comprehensive income from interests accounted for using the equity method		–3.8	–14.0	–0.2	–9.1
Total of items that will not be reclassified subsequently to the income statement		–61.9	–101.5	–51.2	–8.7
Differences from currency translation		–0.2	–2.9	0.0	–0.5
Measurements of cash flow hedges		–118.2	247.2	–80.1	33.6
Other comprehensive income from interests accounted for using the equity method		0.1	–0.4	0.0	–0.4
Total of items that will be reclassified subsequently to the income statement		–118.3	243.9	–80.1	32.7
Other comprehensive income before tax		–180.1	142.4	–131.3	24.0
Taxes on income relating to items that will not be reclassified subsequently to the income statement		14.7	22.3	12.9	–0.2
Taxes on income relating to items that will be reclassified subsequently to the income statement		29.5	–61.8	20.0	–8.4
Other comprehensive income after tax		–135.9	102.9	–98.4	15.4
Total comprehensive income for the period		178.9	620.4	–36.2	147.6
Attributable to the shareholders of VERBUND AG		151.1	560.1	–39.2	128.0
Attributable to non-controlling interests		27.9	60.3	3.0	19.6

Balance sheet

			€m
In accordance with IFRSs	Notes	31/12/2018	30/9/2019
Non-current assets		10,702.7	10,888.3
Intangible assets		644.3	646.8
Property, plant and equipment		8,957.1	8,942.6
Right-of-use assets		–	137.4
Interests accounted for using the equity method		323.3	326.9
Other equity interests	12	130.3	130.3
Investments and other receivables	12	647.7	704.2
Current assets		1,002.1	751.9
Inventories	11	36.0	64.0
Trade receivables, other receivables and securities	12	926.8	670.0
Cash and cash equivalents	12	39.3	18.0
Total assets		11,704.8	11,640.2
In accordance with IFRSs	Notes	31/12/2018	€m 30/9/2019
Equity		5,941.0	6,382.6
Attributable to the shareholders of VERBUND AG		5,305.3	5,718.7
Attributable to non-controlling interests		635.7	663.9
Non-current liabilities		3,968.0	4,009.6
Financial liabilities	12	1,472.8	1,277.0
Provisions		816.8	873.9
Deferred tax liabilities		634.5	726.1
Contributions to building costs and grants		746.9	743.1
Other liabilities	12	296.9	389.4
Current liabilities		1,795.8	1,248.0
Financial liabilities	12	753.5	432.0
Provisions		42.9	30.8
Current tax liabilities		46.5	121.7
Trade payables and other liabilities	12	952.9	663.5

Total equity and liabilities 11,704.8 11,640.2

Statement of changes in equity

In accordance with IFRSs	Called and paid-in share capital	Capital reserves	Retained earnings	Remeasure ments of net defined benefit liability
Notes				10
As at 1/1/2018	347.4	954.3	4,187.5	–263.7
Initial application of IFRS 9	–	–	49.9	–
As at 1/1/2018 adjusted	347.4	954.3	4,237.4	–263.7
Profit for the period	–	–	282.8	–
Other comprehensive income	–	–	0.0	–43.0
Total comprehensive income for the period	–	–	282.8	–43.0
Dividends	–	–	–145.9	–
Other changes in equity	–	–	1.5	0.0
As at 30/9/2018	347.4	954.3	4,375.7	–306.7
As at 1/1/2019	347.4	954.3	4,525.4	–284.8
Profit for the period	–	–	450.9	–
Other comprehensive income	–	–	0.0	–73.0
Total comprehensive income for the period	–	–	450.9	–73.0
Dividends	–	–	–145.9	–
Other changes in equity	–	–	–0.6	0.0
As at 30/9/2019	347.4	954.3	4,829.8	–357.7

2	7

€m
Total equity	Equity attributable to non-controlling interests	Equity attributable to the share holders of VERBUND AG	Measure ments of cash flow hedges	Measure ments of financial instruments	Difference from currency translation
5,690.8	626.8	5,064.1	–207.6	53.3	–7.2
–0.2	0.0	–0.2	–	–50.1	–
5,690.6	626.7	5,063.9	–207.6	3.1	–7.2
314.9	32.1	282.8	–	–	–
–135.9	–4.2	–131.7	–88.6	0.1	–0.2
178.9	27.9	151.1	–88.6	0.1	–0.2
–178.1	–32.2	–145.9	–	–	–
1.5	0.0	1.5	0.0	0.0	0.0
5,692.9	622.4	5,070.5	–296.1	3.2	–7.4
5,941.0	635.7	5,305.3	–228.4	–1.3	–7.4
517.4	66.5	450.9	–	–	–
102.9	–6.2	109.2	185.1	0.0	–3.0
620.4	60.3	560.1	185.1	0.0	–3.0
–178.1	–32.2	–145.9	–	–	–
–0.7	0.0	–0.7	0.0	0.0	–0.1
6,382.6	663.9	5,718.7	–43.2	–1.3	–10.6

Cash flow statement

		€m
Notes	Q1–3/2018	Q1–3/2019
	314.9	517.4
	238.5	270.2
	0.8	–11.7
	–13.5	–22.1
	–1.2	–0.3
	57.3	19.7
	0.4	–3.8
	–20.9	–30.9
	576.2	738.6
	–14.6	–28.0
	–250.7	131.3
	271.8	–11.2
	–40.7	63.1
	542.1	893.8

1 Cash flow from operating activities includes income taxes paid of €44.5m (Q1–3/2018: €58.5m), interest paid of €51.1m (Q1–3/2018: €49.1m), interest received of €0.6m (Q1–3/2018: €0.2m) and dividends received of €17.1m (Q1–3/2018: €18.9m).

			€m
In accordance with IFRSs	Notes	Q1–3/2018	Q1–3/2019
Cash outflow from capital expenditure for intangible assets
and property, plant and equipment		–199.5	–268.7
Cash inflow from the disposal of intangible assets and
property, plant and equipment		46.4	4.7
Cash outflow from capital expenditure for investments		–0.1	–19.1
Cash inflow from the disposal of investments		3.9	20.8
Cash inflow from the disposal of subsidiaries and interests
accounted for using the equity method and other equity
interests		0.0	0.1
Cash outflow from capital expenditure for current investments		–190.0	–205.0
Cash inflow from the disposal of current investments		0.0	295.0
Cash flow from investing activities		–339.3	–172.2
Cash inflow from money market transactions		0.0	169.5
Cash outflow from money market transactions		0.0	0.0
Cash inflow from the assumption of financial liabilities
(excluding money market transactions)		100.0	0.0
Cash outflow from the repayment of financial liabilities
(excluding money market transactions)		–103.1	–709.8
Cash outflow from the repayment of lease liabilities		–	–24.5
Dividends paid		–178.1	–178.1
Cash flow from financing activities		–181.2	–742.9
Change in cash and cash equivalents		21.6	–21.4
Cash and cash equivalents as at 1/1/		28.6	39.3
Change in cash and cash equivalents		21.6	–21.4
Cash and cash equivalents as at 30/9/		50.2	18.0

Selected explanatory notes

Financial reporting principles

Basic principles

These consolidated interim financial statements of VERBUND for the period ended 30 September 2019 have been prepared in accordance with the International Financial Reporting Standards (IFRSs) applicable to interim financial statements as adopted by the European Union.

The condensed format of VERBUND's consolidated interim financial statements is consistent with IAS 34 "Interim Financial Reporting"; for further information and disclosures please refer to VERBUND's consolidated financial statements for the year ended 31 December 2018, which form the basis for these consolidated interim financial statements of VERBUND.

Accounting policies

With the exception of the IASB's new accounting standards described below, the same accounting policies were applied in these consolidated interim financial statements of VERBUND as in VERBUND's consolidated financial statements as at 31 December 2018.

The addition of rounded amounts and the calculation of percentages may lead to rounding differences as a result of the use of computing software.

Standard or interpretation		Published by Mandatory the IASB application for (endorsed by VERBUND the EU)		Material effects on the consolidated interim financial statements of VERBUND
IAS 19	Amendments: Plan Amendment, Curtailment or Settlement	7/2/2018 (13/3/2019)	1/1/2019	None
IAS 28	Amendments: Long-term Interests in Associates and Joint Ventures	12/10/2017 (8/2/2019)	1/1/2019	None
IFRS 16	Leases	13/1/2016 (31/10/2017)	1/1/2019	See below
IFRIC 23	Uncertainty over Income Tax Treatments	7/6/2017 (23/10/2018)	1/1/2019	None
Various	Annual Improvements to IFRS Standards 2015–2017 Cycle	12/12/2017 (14/3/2019)	1/1/2019	None

Newly applicable or applied accounting standards

The IASB published the final version of IFRS 16 on 13 January 2016. This standard replaces IAS 17, IFRIC 4, SIC 15 and SIC 27. The new standard sets out that all leases and the associated contractual rights and obligations are to be recognised on the lessee's balance sheet. The new rules of IFRS 16 lead to an increase in total assets, an increase in EBITDA and, at the same time, higher depreciation charges and interest expenses, as well as to a shift of the expense from leases to the commencement of the respective lease term. VERBUND's leases include mainly arrangements regarding the provision of power plants, buildings, land, lines and vehicles. The initial application of IFRS 16 was carried out retrospectively, whereby the cumulative adjustments as at the initial application date were recognised.

Newly applicable or applied accounting standards IFRS 16 was not applied to agreements that were classified as an arrangement not containing a lease under IAS 17 and IFRIC 4.

The incremental borrowing rate was applied as the discount rate at the initial application date. The weighted average interest rate was 1.2%. A single discount rate was applied to portfolios of leases with reasonably similar characteristics on initial application. In addition, the opportunity was taken to forego impairment testing for leases. Instead, an assessment was conducted to determine whether a contract is onerous and the right-of-use asset was subsequently adjusted at most by the amount of any existing provision. Lease payments for leases whose contractual term or whose remaining term at the initial application date is twelve months or less, as well as for leases for which the underlying asset is of low value, will continue to be recognised in part as an expense. The following table shows the reconciliation of the minimum lease payments presented as at 31 December 2018 to the lease liability recognised on 1 January 2019.

Reconciliation of the minimum lease payments to the recognised lease liability	€m
Commitment for less than one year	32.2
Commitment for longer than one year and up to five years	72.2
Commitment for longer than five years	76.5
Total commitments arising from rental agreements and leases	180.9
Commitments arising from short-term leases and leases of low-value assets	–0.2
Total commitments for the determination of the lease liability	180.6
Effect of discounting at the incremental borrowing rate	–24.9
Lease liability as at 1/1/2019	155.7

Segment reporting

EBITDA in the total column corresponds to EBITDA in the income statement. Therefore, the reconciliation to profit before tax can be taken from the income statement. Transactions between segments are carried out at arm's length. All segment data are measured in accordance with IFRSs.

						€m
	Renewable generation	Sales	Grid	All other segments	Recon ciliation/ consoli dation	Total Group
Q1–3/2019
External revenue	154.1	1,920.8	567.6	18.2	2.8	2,663.6
Internal revenue	810.9	218.5	25.8	145.2	–1,200.3	0.0
Total revenue	965.0	2,139.3	593.3	163.4	–1,197.5	2,663.6
EBITDA	704.3	49.7	170.2	42.3	–20.4	946.1
Depreciation and amortisation	–170.6	–0.7	–86.5	–10.3	–1.4	–269.5
Effects from impairment tests (operating result)	0.0	0.0	0.0	–0.7	0.0	–0.7
Other material non-cash items	44.1	–5.7	9.0	16.1	1.3	64.9
Result from interests accounted for using the equity method	3.5	0.0	0.1	32.8	0.0	36.4
Capital employed	6,488.3	165.4	1,418.6	536.4	193.5	8,802.2
of which carrying amount of interests accounted for using the equity method	2.9	0.0	1.4	322.6	0.0	326.9
Additions to intangible assets and property, plant and equipment	117.0	0.4	113.5	7.6	1.0	239.5
Additions to interests accounted for using the equity method	0.0	0.0	0.0	0.0	0.0	0.0

3	3

						€m
	Renewable generation	Sales	Grid	All other segments	Recon ciliation/ consoli dation	Total Group
Q1–3/2018
External revenue	135.8	1,358.0	565.6	18.5	2.8	2,080.7
Internal revenue	561.8	166.0	36.7	144.0	–908.6	0.0
Total revenue	697.6	1,524.0	602.4	162.6	–905.8	2,080.7
EBITDA	418.9	81.2	157.5	39.8	–19.0	678.4
Depreciation and amortisation	–173.2	–0.9	–61.8	–8.5	–0.3	–244.7
Effects from impairment tests (operating result)	0.0	0.0	0.0	6.2	0.0	6.2
Other material non-cash items	37.0	14.3	8.9	5.7	1.2	67.1
Result from interests accounted for using the equity method	–0.3	0.0	0.0	28.0	0.0	27.7
Capital employed	6,527.1	232.9	1,276.6	456.9	329.8	8,823.3
of which carrying amount of interests accounted for using the equity method	2.7	0.0	1.4	319.4	0.0	323.4
Additions to intangible assets and property, plant and equipment	61.5	1.0	102.7	12.6	0.4	178.2
Additions to interests accounted for using the equity method	0.0	0.0	0.0	0.0	0.0	0.0

Notes to the income statement

(1) Revenue

Revenue							€m
	Domestic	Domestic	Foreign	Q1–3/2018 Q1–3/2019 Q1–3/2018 Q1–3/2019 Q1–3/2018 Q1–3/2019 Foreign	Total	Total	Change
Electricity revenue resellers	48.6	50.8	55.9	21.8	104.5	72.6	–30.5%
Electricity revenue traders	9.7	11.7	7.6	17.6	17.3	29.4	69.2%
Electricity revenue consumers	0.0	0.0	0.0	32.8	0.0	32.8	n.a.
Electricity revenue – Renewable generation segment	58.3	62.5	63.5	72.3	121.8	134.8	10.6%
Electricity revenue resellers	266.8	412.1	266.1	250.3	532.8	662.4	24.3%
Electricity revenue traders	110.2	278.9	331.9	455.2	442.1	734.1	66.1%
Electricity revenue consumers	156.0	278.3	170.9	201.1	326.9	479.5	46.7%
Electricity revenue –
Sales segment	532.9	969.3	768.9	906.7	1,301.8	1,875.9	44.1%
Electricity revenue resellers	49.2	75.4	135.3	66.0	184.5	141.4	–23.4%
Electricity revenue traders	3.6	4.9	2.0	0.8	5.6	5.7	0.5%
Electricity revenue –
Grid segment	52.8	80.2	137.4	66.8	190.1	147.1	–22.7%
Electricity revenue resellers	0.0	0.0	0.0	0.0	0.0	0.0	–100.0%
Electricity revenue –
All other segments	0.0	0.0	0.0	0.0	0.0		0.0 –100.0%
Total electricity sales revenue	644.0	1,112.0	969.8	1,045.8	1,613.8	2,157.8	33.7%
Grid revenue electric utilities	283.6	272.3	10.4	18.6	293.9	290.9	–1.0%
Grid revenue industrial customers	8.5	5.3	0.0	0.0	8.5	5.3	–37.9%
Grid revenue other	19.5	26.3	49.8	90.2	69.2	116.5	68.3%
Total grid revenue –
Grid segment	311.5	303.9	60.1	108.8	371.7	412.7	11.1%
Other revenue –
Renewable generation segment					13.9	19.4	39.2%
Other revenue – Sales segment					56.2	44.9	–20.1%
Other revenue – Grid segment					3.9	7.8	102.6%
Other revenue – All other segments					18.5	18.2	–1.6%
Other revenue – reconciliation					2.8	2.8	2.7%
Total of other revenue					95.2	93.1	–2.2%
Total revenue					2,080.7	2,663.6	28.0%

	Q1–3/2018	Q1–3/2019	Change
Expenses for electricity purchases
(including control power)	931.6	1,216.1	30.5%
Expenses for grid purchases (system use)	19.5	53.1	171.6%
Expenses for gas purchases	25.4	20.8	–17.9%
Purchases of emission rights (trade)	5.3	0.1	–97.9%
Purchases of proof of origin and green certificates	3.0	3.5	16.9%
Expenses for electricity, grid, gas and certificates purchases	984.9	1,293.7	31.4%
Fuel expenses and other usage-/revenue-dependent expenses			€m
	Q1–3/2018	Q1–3/2019	Change
Fuel expenses	56.1	43.7	–22.1%
Emission rights acquired in exchange for consideration	2.9	15.1	n.a.
Other revenue-dependent expenses	14.8	16.2	9.3%
Fuel expenses and other usage-/revenue-dependent
expenses	73.8	75.0	1.7%
Personnel expenses			€m
	Q1–3/2018	Q1–3/2019	Change
Wages and salaries	177.7	188.5	6.0%
Expenses for social security contributions as required by law as well as income-based charges and compulsory
contributions	40.8	41.3	1.2%
Other social expenses	2.6	2.8	5.8%
Subtotal	221.1	232.5	5.1%
Expenses for termination benefits	4.1	0.4	–90.5%
Expenses for pensions and similar obligations	10.9	11.2	2.5%
Personnel expenses	236.2	244.1	3.4%
Depreciation and amortisation			€m
	Q1–3/2018	Q1–3/2019	Change
Depreciation of property, plant and equipment	239.7	238.1	–0.7%
Depreciation of right-of-use assets	–	25.9	n.a.
Amortisation of intangible assets	5.0	5.5	8.8%

Domestic Domestic Foreign Foreign

Income or expenses 28.1 33.1 17.8% –0.4 3.3 n.a.

Expenses for electricity, grid, gas and certificates purchases

Fuel expenses and other usage-/ revenue-dependent expenses

Personnel expenses

Depreciation and amortisation

Result from interests accounted for using the equity method

(7)	Interest income			€m
Interest income		Q1–3/2018	Q1–3/2019	Change
	Interest from investments under closed items
	on the balance sheet	22.3	22.7	1.7%
	Other interest and similar income	0.6	2.0	n.a.
	Interest income	22.9	24.7	–13.8%
(8)	Interest expenses			€m
Interest expenses		Q1–3/2018	Q1–3/2019	Change
	Interest on bonds	37.2	30.3	–18.4%
	Interest on financial liabilities under closed items on the balance sheet	22.3	22.7	1.7%
	Interest on other liabilities from electricity supply commitments	12.0	11.5	–4.2%
	Net interest expense on personnel-related liabilities	8.0	9.3	15.9%
	Interest on bank loans	9.0	6.9	–22.9%
	Interest on a share redemption obligation	3.6	3.5	–2.8%
	Interest on other non-current provisions	1.2	1.5	24.8%
	Interest on leases	–	0.8	n.a.
	Profit or loss attributable to limited partners	0.1	0.1	36.0%
	Repayment of non-current financial liabilities from capital shares attributable to limited partners1	0.0	–1.0	n.a.
	Borrowing costs capitalised in accordance with IAS 23	–2.8	–2.6	7.2%
	Other interest and similar expenses	3.4	3.8	11.9%
	Interest expenses	94.0	86.9	–7.6%

1 In quarters 1–3/2019 VERBUND acquired interests in the ten wind farms and two infrastructure companies in the Hunsrück area of Rhineland-Palatinate previously held by the other limited partners. This reduced the capital shares attributable to limited partners presented under non-current financial liabilities.

Other financial result			€m
	Q1–3/2018	Q1–3/2019	Change
Measurement of non-derivative financial instruments	–1.1	11.6	n.a.
Income from securities and loans	1.7	1.6	–6.5%
Income from disposal of financial instruments	0.0	0.2	n.a.
Foreign exchange gains	0.2	0.1	–40.1%
Change in expected credit losses	0.1	0.0	–57.4%
Foreign exchange losses	–0.1	–0.1	–7.2%
Measurement of derivatives in the finance area	1.5	–0.6	–137.2%
Measurement of an obligation to return an interest	0.0	–2.4	n.a.
Other	0.0	–0.1	n.a.
Other financial result	2.3	10.4	139.6%

(9) Other financial result

Notes to the statement of comprehensive income

Provisions for pensions and similar obligations and for statutory termination benefits were measured based on an actuarial report updated on 30 June 2019. The discount rate applied was 1.50% instead of 2.00% (obligations similar to pensions) and 1.25% instead of 1.75% (pensions and termination benefits). Furthermore, the measurement reflects future salary increases of 2.75% to 3.25% instead of 1.75% and future pension increases of 1.00% to 2.50% instead of 1.00% to 2.00%.

Notes to the balance sheet

Inventories			€m
	31/12/2018	30/9/2019	Change
Inventories of primary energy sources
held for generation	18.3	38.9	112.8%
Emission rights held for trading	3.7	11.8	n.a.
Measurements of emission rights held for trading	8.2	8.1	–1.0%
Fair value of emission rights held for trading	11.9	19.8	66.6%
Proof of origin and green electricity certificates	1.8	0.7	–61.0%
Other	3.9	4.5	13.6%
Inventories	36.0	64.0	77.8%

The measurement benchmark for inventories of natural gas and emission rights held for trading by VERBUND is the fair value less costs to sell in accordance with the exception provided for raw materials and commodity broker-traders (brokerage exemption). The stock exchange price for front-month gas forwards on the Central European Gas Hub (CEGH) or NetConnect Germany (NCG) is the relevant price for inventories of natural gas held for trading. The fair value of emission rights held for trading corresponds to the price quoted on the European Energy Exchange (EEX). The fair values are thus based on Level 1 measurements.

(10) Remeasurements of the net defined benefit liability

(11) Inventories

(12)
Additional
disclosures regarding
financial instruments

Carrying amounts and fair values by measurement category 30/9/2019			€m
Assets – balance sheet items	Measurement category in accordance with IFRS 9	Level	Carrying amount	Fair value
Interests in unconsolidated subsidiaries	FVOCI	2	12.9	12.9
Interests in unconsolidated subsidiaries	FVPL	3	0.7	0.7
Interests in unconsolidated subsidiaries	FVOCI	AC	0.6	0.6
Other equity interests	FVOCI	1	22.0	22.0
Other equity interests	FVOCI	2	87.5	87.5
Other equity interests	FVOCI	AC	6.6	6.6
Other equity interests			130.3
Securities	FVPL	1	144.3	144.3
Securities	FVOCI	3	8.5	8.5
Securities	FVOCI	AC	1.0	1.0
Securities – closed items on the balance sheet	AC	2	66.2	64.2
Other loans – closed items on the balance sheet	AC	2	304.4	336.9
Derivatives in the finance area – closed items on the balance sheet	FVPL	2	92.0	92.0
Loans to investees	AC	2	54.4	56.7
Other loans	AC	2	5.2	5.9
Other	–	–	28.1	–
Investments and other receivables			704.2
Trade receivables	AC	–	372.6	–
Receivables from investees	AC	–	34.2	–
Loans to investees	AC	2	3.5	3.7
Other loans	AC	2	0.1	0.1
Other loans – closed items on the balance sheet	AC	2	4.8	6.3
Derivatives in the energy area	FVPL	1	0.1	0.1
Derivatives in the energy area	FVPL	2	117.2	117.2
Securities	FVPL	1	0.0	0.0
Money market transactions	AC	2	0.0	0.0
Emission rights	–	–	25.9	–
Other	AC	–	46.1	–
Other	–	–	65.5	–
Trade receivables, other receivables and securities			670.0
Cash and cash equivalents	AC	–	18.0	–
Aggregated by measurement category
Financial assets at amortised cost	AC		909.6
Financial assets at fair value through profit or loss	FVPL		354.2
Financial assets at fair value through
other comprehensive income	FVOCI		139.2

C		9
	3

Carrying amounts and fair values by measurement category 30/9/2019 €m
Liabilities – balance sheet items	Measurement category in accordance with IFRS 9	Level	Carrying amount	Fair value
Bonds	AC	2	703.5	755.6
Financial liabilities to banks and to others	AC	2	538.1	587.0
Financial liabilities to banks – closed items on the balance sheet	AC	2	121.8	165.1
Financial liabilities to banks – closed items on the balance sheet	FVPL – D	2	345.6	345.6
Capital shares attributable to limited partners	–	–	–0.1	–
Non-current and current financial liabilities			1,709.0
Electricity supply commitment	–	–	149.8	–
Obligation to return an interest	AC	3	81.3	136.5
Trade payables	AC	–	0.7	–
Deferred income for grants (emission rights)	–	–	0.6	–
Lease liabilities	–	–	97.7	–
Deferred income – cross-border leasing	–	–	20.0	–
Other	AC	–	39.2	–
Non-current other liabilities			389.4
Trade payables	AC	–	230.6	–
Derivatives in the energy area	FVPL	2	178.2	178.2
Derivatives in the finance area	FVPL	2	16.4	16.4
Lease liabilities	–	–	41.8	–
Other	AC	–	104.5	–
Other	–	–	91.9	–
Trade payables and current other liabilities			663.5
Aggregated by measurement category
Financial liabilities at amortised cost	AC		1,819.9
Financial liabilities at fair value through profit or loss	FVPL		194.7
Financial liabilities at fair value through profit or loss – designated	FVPL – D		345.6

Carrying amounts and fair values by measurement category 31/12/2018 €m
Assets – balance sheet items	Measurement category in accordance with IFRS 9	Level	Carrying amount	Fair value
Interests in unconsolidated subsidiaries	FVOCI	2	12.9	12.9
Interests in unconsolidated subsidiaries	FVPL	3	0.7	0.7
Interests in unconsolidated subsidiaries	FVOCI	AC	0.6	0.6
Other equity interests	FVOCI	1	22.0	22.0
Other equity interests	FVOCI	2	87.5	87.5
Other equity interests	FVOCI	AC	6.6	6.6
Other equity interests			130.3
Securities	FVPL	1	132.7	132.7
Securities	FVOCI	3	8.5	8.5
Securities	FVOCI	AC	1.0	1.0
Securities – closed items on the balance sheet	AC	2	63.2	59.7
Other loans – closed items on the balance sheet	AC	2	292.5	313.2
Derivatives in the finance area – closed items on the balance sheet	FVPL	2	78.0	78.0
Loans to investees	AC	2	34.7	36.2
Other loans	AC	2	5.2	5.1
Other	–	–	31.9	–
Investments and other receivables			647.7
Trade receivables	AC	–	394.3	–
Receivables from investees	AC	–	29.6	–
Loans to investees	AC	2	21.6	21.8
Other loans	AC	2	0.2	0.2
Derivatives in the energy area	FVPL	1	10.1	10.1
Derivatives in the energy area	FVPL	2	283.1	283.1
Securities	FVPL	1	69.3	69.3
Money market transactions	AC	2	20.0	20.0
Emission rights	–	–	19.9	–
Other	AC	–	51.9	–
Other	–	–	26.9	–
Trade receivables, other receivables and securities			926.8
Cash and cash equivalents	AC	–	39.3	–
Aggregated by measurement category
Financial assets at amortised cost	AC		952.5
Financial assets at fair value through profit or loss	FVPL		573.8
Financial assets at fair value through other comprehensive income	FVOCI		139.2

Carrying amounts and fair values by measurement category 31/12/2018 €m
Liabilities – balance sheet items	Measurement category in accordance with IFRS 9	Level	Carrying amount	Fair value
Bonds	AC	2	1,397.1	1,458.4
Financial liabilities to banks and to others	AC	2	392.5	422.5
Financial liabilities to banks – closed items on the balance sheet	AC	2	113.6	145.5
Financial liabilities to banks – closed items on the balance sheet	FVPL – D	2	320.2	320.2
Capital shares attributable to limited partners	–	–	2.9	–
Non-current and current financial liabilities			2,226.4
Electricity supply commitment	–	–	155.8	–
Obligation to return an interest	AC	3	75.4	118.7
Trade payables	AC	–	1.3	–
Deferred income – cross-border leasing	–	–	32.0	–
Other	AC	–	32.4	–
Non-current other liabilities			296.9
Trade payables	AC	–	188.0	–
Derivatives in the energy area	FVPL	2	528.8	528.8
Derivatives in the finance area	FVPL	2	15.8	15.8
Other	AC	–	145.7	–
Other	–	–	74.6	–
Trade payables and current other liabilities			952.9
Aggregated by measurement category
Financial liabilities at amortised cost	AC		2,346.1
Financial liabilities at fair value through profit or loss	FVPL		544.7
Financial liabilities at fair value through profit or loss – designated	FVPL – D		320.2

Of the derivative financial instruments in the energy area classified as FVPL in the above tables, positive fair values of €46.5m (31 December 2018: €73.7m) and negative fair values of €95.9m (31 December 2018: €370.5m) relate to hedging relationships designated as cash flow hedges. These fair values represent gross amounts; following the inter-portfolio netting carried out in accordance with VERBUND's accounting policies, cash flow hedges can no longer be isolated.

Valuation techniques and input factors for determining fair values

Level	Financial instruments	Valuation technique	Input factor
1	Energy forwards	Market approach	Settlement price published by the stock exchange
1	Securities, other equity interest in Burgenland Holding AG	Market approach	Stock exchange price
2	Securities and other loans under closed items on the balance sheet, long-term loans, liabilities to banks, bonds and other financial liabilities	Net present value approach	Payments associated with the financial instruments, yield curve, credit risk of the contracting parties (credit default swaps or credit spread curves)
2	Interests in unconsolidated subsidiaries, other equity interests in Energie AG Oberösterreich and HGRT	Market approach	Trading multiple, transaction price
2	Non-listed energy forwards	Net present value approach	Forward price curve derived from stock exchange prices, yield curve, credit risk of the contracting parties
2	Other financial assets and liabilities measured at fair value through profit or loss in the finance area	Net present value approach	Cash flows already fixed or determined via forward rates, yield curve, credit risk of the contracting parties
3	Return obligation (obligation to transfer back the 50% interest acquired in Donaukraftwerk Jochenstein AG)	Net present value approach	Price forecasts for electricity, weighted average cost of capital after taxes
3	Securities (shares of CEESEG AG)	Net present value approach	Expected distribution of profits, cost of equity
AC	Other interests in unconsolidated subsidiaries, other equity interests and other securities	–	Cost as a best estimate of fair value
–	Cash and cash equivalents, trade receivables and payables, current other receivables, other borrowing within current credit lines as well as current other liabilities	–	Carrying amounts as a best estimate of fair value

Other note disclosures

Dividends paid	Total (€m)	Number of ordinary shares	Per share (€)
Dividend paid in 2019 for financial year 2018	145.9	347,415,686	0.42
Dividend paid in 2018 for financial year 2017	145.9	347,415,686	0.42

Purchase commitments for property, plant and equipment,

intangible assets and other services			€m
	30/9/2019	of which due in	of which due
		2019	2020–2024
Total commitment	735.6	381.8	353.5

VERBUND's last remaining cross-border leasing transaction has an off-balance sheet financing structure. As at 30 September 2019, VERBUND's subsidiary liability for the non-redeemed portion of lease liabilities from cross-border leasing transactions amounted to €527.7m (31 December 2018: €519.3m). Of the rights of recourse against primary debtors, a total of €313.4m (31 December 2018: €324.0m) was secured through counter-guarantees from financial institutions, entities entitled to purchase electricity and regional authorities (from guarantors' liabilities). In addition, €289.0m (31 December 2018: €264.7m) was covered by off-balance sheet investments.

There were no significant developments compared with the status described as at 31 December 2018 in connection with the claims for damages asserted in the wake of the flooding of the Drau River in 2012. No disclosures have been provided in respect of any contingent liabilities or provisions because it is likely that such note disclosures would seriously prejudice VERBUND's position in the proceedings.

In connection with the amortisation of goodwill for the investment in VERBUND Innkraftwerke GmbH claimed for tax purposes for the years 2014–2023, the appeals against the 2014, 2015 and 2016 notices of assessment for the group parent remain pending. The tax benefit for these years (reduction of future tax payments in the amount of €8.2m per year) is recognised in accordance with VERBUND's accounting policies if it is reasonably likely.

Contingent liabilities

Court proceedings pending

Dividends paid

Purchase commitments

	Q1–3/2018	Q1–3/2019	Change
Income statement
Electricity revenue	48.3	57.7	19.4%
Grid revenue	26.0	26.9	3.2%
Other revenue	0.2	0.5	174.4%
Other operating income	1.6	4.0	142.6%
Expenses for electricity, grid, gas and certificates purchases	–11.1	–19.9	–79.8%
Other operating expenses	–2.0	–0.7	64.5%
Interest income	1.1	1.1	–3.5%
Interest expenses	0.0	0.0	93.5%
Other financial result	1.5	1.4	–6.7%

Transactions with investees accounted for using the equity method			€m
	31/12/2018	30/9/2019	Change
Balance sheet
Investments and other receivables	27.1	27.8	2.6%
Trade receivables, other current receivables and securities	33.4	28.9	–13.5%
Contributions to building costs and grants	276.3	272.7	–1.3%
Trade payables and other current liabilities	1.3	2.0	54.8%

Electricity revenue with equity-accounted investees was generated mainly with KELAG (€46.5m; Q1–3/2018: €41.3m) and with OeMAG (€10.8m; Q1–3/2018: €6.5m). The electricity revenue was offset by electricity purchases from KELAG in the amount of €19.0m (Q1–3/2018: €10.6m). Grid revenue was only realised with KELAG.

Electricity revenue with companies controlled or significantly influenced by the Republic of Austria amounted to a total of €47.0m (Q1–3/2018: €44.9m). Electricity was purchased mainly by ÖBB, OMV and Telekom Austria. Electricity purchased from companies controlled or significantly influenced by the Republic of Austria totalled €2.0m (Q1–3/2018: €1.2m). The electricity was supplied primarily by ÖBB. Gas trading contracts with OMV and gas deliveries on the part of OMV resulted in a total expense of €21.0m in other revenue and purchased gas, respectively (Q1–3/2018: €25.4m).

VERBUND's expenses for monitoring by E-Control amounted to €8.2m (Q1–3/2018: €8.1m).

Transactions with related parties These consolidated interim financial statements of VERBUND have been neither audited nor reviewed by an auditor.

There were no events requiring disclosure between the reporting date of 30 September 2019 and authorisation for issue on 22 October 2019.

Events after the reporting date

Audit and/or review

Vienna, 22 October 2019

Executive Board

Dipl.-Ing. Wolfgang Anzengruber Mag. Dr. Michael Strugl Chairman of the Executive Board Vice-Chairman of the Executive Board

Dr. Peter F. Kollmann Mag. Dr. Achim Kaspar

Member of the Executive Board Member of the Executive Board

Responsibility statement of the legal representatives

We confirm according to the best of our knowledge that the condensed consolidated interim financial statements of VERBUND as at 30 September 2019, prepared in accordance with the accounting standards for interim financial reports under International Financial Reporting Standards (IFRSs), give a true and fair view of the assets and liabilities, financial position and profit or loss of the Group.

We also confirm that the interim Group management report of VERBUND gives a true and fair view of the assets and liabilities, financial position and profit or loss of the Group with respect to the important events during the first nine months of the financial year and their effects on the condensed consolidated interim financial statements as at 30 September 2019 as well as with respect to the principal risks and uncertainties in the remaining three months of the financial year.

Vienna, 22 October 2019

Executive Board

Dipl.-Ing. Wolfgang Anzengruber Mag. Dr. Michael Strugl

Dr. Peter F. Kollmann Mag. Dr. Achim Kaspar Member of the Executive Board Member of the Executive Board

Chairman of the Executive Board Vice-Chairman of the Executive Board

EDITORIAL DETAILS

Published by: VERBUND AG Am Hof 6a, 1010 Vienna

This Interim Report was produced in-house with firesys. Charts and table concept: Roman Griesfelder, aspektum gmbh Creative concept and design: Brainds Design and consulting: Grayling Translation and linguistic consulting: ASI GmbH – Austria Sprachendienst International Printing: VERBUND AG (in-house)

Contact: VERBUND AG

Am Hof 6a, 1010 Vienna, Austria Phone: +43 (0)50 313-0 Fax: +43 (0)50 313-54191 Email: information@verbund.com Homepage: www.verbund.com Commercial register number: FN 76023z Commercial register court: Commercial Court of Vienna VAT No: ATU14703908 DPR No: 0040771 Registered office: Vienna, Austria

Investor Relations:

Andreas Wollein Phone: +43 (0)50 313-52604 Email: investor-relations@verbund.com

Group Communications:

Corinna Tinkler Phone: +43 (0)50 313-53702 Email: media@verbund.com

Shareholder structure:

– Republic of Austria (51.0%) – Syndicate (> 25.0%) consisting of EVN AG (the shareholders of which are: Niederösterreichische Landes-Beteiligungsholding GmbH, 51%, EnBW Trust e.V., 30.0%) and Wiener Stadtwerke (the sole shareholder is the city of Vienna) – TIWAG-Tiroler Wasserkraft AG (> 5.0%, the sole shareholder is the province of Tyrol) – Free float (< 20.0%): No further information is available concerning owners of shares in free float.

Legal and statutory limitations on voting rights:

With the exception of regional authorities and companies in which regional authorities hold an interest of at least 51%, the voting rights of each shareholder in the Annual General Meeting are restricted to 5% of the share capital.

Regulatory body/trade associations:

E-Control GmbH/E-Control Kommission Bundesministerium für Finanzen Wirtschaftskammer Österreich Oesterreichs Energie

Object of the Group:

The Group focus is the generation, transportation, trading with and sale of electrical energy and energy from other sources as well as the provision and performance of energy services.

Executive Board:

Wolfgang Anzengruber (Chairman), Michael Strugl (Vice-Chairman), Peter F. Kollmann, Achim Kaspar

Supervisory Board:

Thomas Schmid (Chairman), Martin Ohneberg (1st Vice-Chairman), Elisabeth Engelbrechtsmüller-Strauß (2nd Vice-Chairwoman), Harald Kaszanits, Werner Muhm, Susanne Riess, Jürgen Roth, Stefan Szyszkowitz, Christa Wagner, Peter Weinelt, Doris Dangl, Isabella Hönlinger, Kurt Christof, Wolfgang Liebscher, Veronika Neugeboren

Purpose of publication:

Information of customers, partners and the general public about the utilities sector and the Group.

Specific laws applicable:

Austrian Electricity Industry and Organisation Act (Elektrizitätswirtschafts- und -organisationsgesetz, ElWOG) with associated regulations and implemented laws. The legal bases listed can be accessed via the legal information system of the Federal Chancellery of the Republic of Austria at www.ris.bka.gv.at.