Burgenland Holding AG

Interim / Quarterly Report • May 25, 2016

Interim Financial Report 2015/16

1 October 2015 – 31 March 2016

Interim Financial Report 2015/16 Content

Corporate profile	3
Burgenland Holding AG share	4
Burgenland Holding AG – HY1 2015/16	5
Business development	5
Condensed Interim Financial Statements	6
Notes	7
Interim Management Report	7
Energie Burgenland AG – Q1 2015/16	8
Statement of the Management Board on the Interim Financial Report	9

Key figures HY1 2015/16

Burgenland Holding AG		2015/16 HY1	2014/15	Change in %
Balance sheet total	EURm	80.0	1) 78.5	1.9
Equity	EURm	79.4	1) 78.5	1.1
Investment income	EURm	9.3	2) 8.3	12.0
Net income for the period	EURm	9.2	2) 8.2	12.2

1) As of 30 September 2015.

2) HY1 2014/15

Energie Burgenland AG		2015/16 Q1	2014/15 Q1	Change in %
Electricity sales volumes	GWh	322	318	1.3
Electricity network distribution volumes	GWh	468	431	8.6
Natural gas sales volumes	GWh	335	374	–10.4
Natural gas network distribution volumes	GWh	673	674	–0.1
Revenue	EURm	85.2	89.1	–4.4
Pre-tax profit	EURm	12.8	8.8	45.5
Balance sheet total	EURm	898.3	895.8	0.3
Equity1)	EURm	325.9	320.2	1.8

1) Including untaxed reserves

Energising Burgenland Burgenland Holding AG

Burgenland Holding AG holds 49% of the share capital of Energie Burgenland AG, The remaining 51% of the shares are held by Burgenländische Landesholding GmbH. The share capital of Energie Burgenland AG amounts to EUR 34.9m.

The shares of Burgenland Holding AG (share capital: EUR 21.81m) are listed on the Official Market of the Vienna Stock Exchange unter AT0000640552. EVN AG is the majority shareholder in Burgenland Holding AG and holds an unchanged stake of 73.63% of the share capital, with Verbund AG holding more than 10% and WIEN ENERGIE GmbH holding between 5% and 10%. All other shareholders hold less than 4%.

Burgenland Holding AG share

The global economy has lost momentum since the middle of last year. While severe economic problems continued to become more evident in emerging countries, economic growth slowed down in developed economies. Brazil and Russia are in deep recession, and growth in China has dropped to about 7% in the course of the country's transformation towards a more consumption-oriented economy, with the biggest threat to the global economy currently emanating from a further significant downturn in the Chinese economy. In addition, ongoing geopolitical tensions in the European Union sustain this uncertainty. Most recently, the economy in the Eurozone continued its hesitant recovery. Towards the end of the year, growth in the US and Japan did not really pick up, either. In general, however, the industrialised nations have sustained moderate growth.

Within the reporting period, international stock markets have performed inconsistently. While the leading German DAX index registered an increase by 3.2% from October 2015 to March 2016, the Dow Jones, the American benchmark index, managed to rise 8.6%.

Even though Vienna's leading ATX index recorded an increase of 1.8% in the past six months, the environment remained difficult for energy companies. Still, the share price of Burgenland Holding AG gained 11.56% and stood at EUR 58.00 as of March 31, 2016. This corresponds to a market capitalisation of EUR 174m. Daily trading volume averaged 20 shares during the reporting period, and the weighting of the share in Vienna's WBI index as of March 31, 2016 was unchanged at 0.21%.

Stock performance		2015/16 HY1	2014/15 HY1
Average daily volume	Number	20	27
Total share volume	EURm	0.13	0.17
Highest price	EUR	58.00	60.00
Lowest price	EUR	47.81	44.51
Share price at the end of March	EUR	58.00	51.99
Market capitalisation at the end of March	EURm	174	156
WBI weighting at the end of March	%	0.21	0.18

Burgenland Holding share price – relative development in comparison to Vienna Stock Exchange Index (%)

Burgenland Holding AG HY1 2015/16

Highlights

• Increase of dividend from EUR 2.70 to EUR 2.75 per share
• Result for the period amounting to EUR 9.2m
• Outlook 2015/16: Profit for the year expected to be markedly above last year's result

Burgenland Holding AG – Key figures		2015/16 HY1	2014/15	Change in %
Balance sheet total	EURm	80.0	1) 78.5	1.9
Equity	EURm	79.4	1) 78.5	1.1
Investment income	EURm	9.3	8.32)	12.0
Net income for the period	EURm	9.2	8.22)	12.2

1) As of 30 September 2015 2) HY1 2014/15

Income situation

At EUR 9.3m and EUR 9.2m, respectively, investment income as well as the result for the period for the first six months of 2015/16 was significantly above last year's levels. The investment income from Burgenland Holding AG for the reporting period includes the dividend payout of Energie Burgenland AG for the 2014/15 business year.

Balance sheet and capital structure

As of March 31, 2016, the balance sheet total amounted to EUR 80.0m, thus 1.9% above the corresponding figure as of the balance sheet date of September 30, 2015. This increase can be explained by the claim arising from the dividends of Energie Burgenland AG, which had already been recorded as of the balance sheet date. This was offset by the dividend of Burgenland Holding AG, most of which had also already been paid out.

As of the relevant date of March 31, 2016, the dividend in the amount of EUR 8.3m had already been resolved by the Annual General Meeting and most of it paid out. As investment income tax, due to its later maturity, is still shown as a liability in the balance sheet as of the balance sheet date, the equity ratio shows a decrease in the first six months compared to the balance sheet date of September 30, 2015, from 99.9% to 99.2%.

Outlook

Due to the fact that the dividend payout of Energie Burgenland AG from its net profits for 2014/15 has already been accounted for, no major changes in the results of Burgenland Holding AG are expected for the 2015/16 business year after the first six months of 2015/16.

Condensed Interim Financial Statement as of 31 March 2016

	Balance sheet	in TEUR	31.03.2016	30.09.2015
	Assets
A.	Fixed assets
	Financial assets
	Investments		71,325.3	71,325.3
			71,325.3	71,325.3
B.	Current assets
	I. Accounts receivables and other assets
	1. Receivables from affiliated companies		8,043.7	7,124.9
	2. Other receivables		10.3	4.4
			8,054.0	7,129.3
	II. Cash at banks		614.4	10.3
			8,668.4	7,139.6
C.	Deferred expenses and accrued income		14.5	4.9
	Total assets		80,008.2	78,469.8
	Equity and liabilities
A.	Equity
	I. Share capital		21,810.0	21,810.0
	II. Capital reserves
	Committed reserves		43,676.4	43,676.4
	III. Retained earnings
	Other reserves (free reserves)		4,722.0	4,722.0
	IV. Net profit		9,199.1	8,250.6
			79,407.4	78,459.0
B.	Provisions
	Other provisions		2.5	10.8
C.	Liabilities		2.5	10.8
	Other liabilities		598.3	0.0
			598.3	0.0
	Total equity and liabilities		80,008.2	78,469.8
			2015/16	2014/15
	Income statement Other operating income	in TEUR	HY1 0.2	HY1 0.2
	Other operating expenses		–118.2	–207.3
	Operating result		–118.1	–207.1
	Investment income		9,310.0	8,421.9
Other interest and similar income			6.6	27.9
Interest and similar expenses			0.0	–0.2
Financial result		9,316.6	8,449.7
Pre-tax profit			9,198.5	8,242.5
Taxes on income			0.0	84.2
	Income for the period		9,198.5	8,326.8
	Allocation of retained earnings		0.0	–80.0
	Profit carry-forward		0.6	3.8
	Net profit for the period		9,199.1	8,250.6

Notes

General accounting principles

The Interim Financial Statements for the period from 1 October 2015 to 31 March 2016 were prepared with regard to Generally Accepted Austrian Accounting Principles.

The Interim Financial Statements as of 31 March 2016 were neither subject to a full audit nor a review by an auditor.

Notes to the balance sheet

As of the balance sheet date of 31 March 2016, shareholders' equity stood at EUR 79.4m, thus EUR 0.9m, or 1.1%, higher than on the balance sheet date of 30 September 2015. The position "Other provisions" relate to the compensation of Supervisory Board members of Burgenland Holding AG.

The item "Other liabilities" is composed entirely of the investment income tax liability vis-à-vis the tax authorities in connection with the effected dividend payout.

Interim Management Report

The result of Burgenland Holding AG is determined mainly by the dividends of its associated companies as well as the interest rate level and was at last year's level at the end of the first six months of 2015/16 thanks to the stable dividend payout of Energie Burgenland AG.

Due to the fact that the dividend payout of Energie Burgenland AG has already been resolved, no major

Notes to the income statement

The operating result of TEUR –118.1 for the first six months of 2015/16 was about TEUR 18 below the level of the corresponding period last year. This can be put down mainly to the fact that expenses in connection with the dividend payout were recorded earlier this time.

The investment income of Burgenland Holding AG for the first six months of 2015/16 comprises the dividend payout of Energie Burgenland AG. On 15 March 2016, the Annual General Meeting of Energie Burgenland AG resolved to distribute a dividend of EUR 19.0m out of the net profit as of 30 September 2015, of which EUR 9.31m are allocated to Burgenland Holding AG.

The item "Other financial result" dropped TEUR 14.1 to TEUR 6.6, mostly as a result of a decline in interest income compared to the corresponding period.

changes in the result are to be expected for the second half of 2015/16. Furthermore, no material risks or uncertainties should be anticipated for the remaining six months of the business year given the stable earnings structure of Burgenland Holding AG.

Energie Burgenland AG Q1 2015/16 1)

Highlights

• Price reduction for electricity and natural gas for private customers by 5% average as of October 1, 2015
• Installation of the first smart meters and data concentrators
• Start of "Energie Burgenland FIT 2020" efficiency project
• Opening of biomass heating plant Bad Tatzmannsdorf
• Expansion of district heating in Eisenstadt

		2015/16	2014/15	Change
Energie Burgenland AG – Group		Q1	Q1	in %
Electricity sales volumes	GWh	322	318	1.3
Electricity network distribution volumes	GWh	468	431	8.6
Natural gas sales volumes	GWh	335	374	–10.4
Natural gas network distribution volumes	GWh	673	674	–0.1
Revenue	EURm	85.2	89.1	–4.4
Pre-tax profit	EURm	12.8	8.8	45.5
Balance sheet total	EURm	898.3	895.8	0.3
Equity2)	EURm	325.9	320.2	1.8
Gross cash flow	EURm	24.2	15.8	53.2

2) Including untaxed reserves

Energy sales and supply

In the first quarter of the 2015/16 business year, electricity sales to final customers amounted to 322 GWh, which corresponds to a 1.3% increase compared to the same period last year. Compared to the previous business year, grid sales rose 8.6% to 468 GWh. Natural gas sales to final customers amounted to 335 GWh (last year: 374 GWh), natural gas grid sales with 673 GWh remained nearly unchanged.

Income situation

The Group's sales revenues amounted to EUR 85.2m. The decrease compared to last year was mostly the result of lower output of the wind farms. Moreover, the price reductions for electricity and natural gas as of October 1, 2015, were reflected accordingly in the revenues of Energie Burgenland Vertrieb GmbH & Co KG. Pre-tax profit amounts to EUR 12.8m, which represents an increase of EUR 4.0m compared to the previous year.

Balance sheet and capital structure

As of December 31, 2015, the balance sheet total amounted to EUR 898.3m, with non-current assets (EUR 753.5m) accounting for roughly 83.9% of total assets. The decrease in non-current assets compared to last year results from unscheduled writedowns as well as declining investment activity.

Shareholders' equity increased to EUR 325.9m as of December 31, 2015, resulting in an equity ratio of 36.3%. Gross cash flow was EUR 24.2m.

Outlook

In addition to continuous grid expansion, grid renewal, and maintenance measures, Burgenland's distribution grid is being expanded further to integrate additional renewable power generation, in particular wind power plants.

The implementation of energy savings measures in connection with the Energy Efficiency Act.is being pushed, as is the "Energie Burgenland FIT 2020" project, which will bring about an efficient design of structures and costs within Energie Burgenland Group.

¹⁾ The information on performance refers to the interim group accounts of Energie Burgenland AG for the period October to December for the 2015/16 business year as of 31 December 2015. For comparison, we present the figures from the interim group accounts as of 31 December 2014. The consolidation scope comprises 19 fully consolidated, one proportionately consolidated and two equity-consolidated companies.

Statement of the Management Board on the Interim Financial Report pursuant to § 87 para 1 fig 3 Stock Exchange Act

We confirm, to the best of our knowledge, that the abridged Interim Statements drawn up in conformity with the relevant accounting standards present a true and fair view of the company's assets, liabilities, financial position, and profit or loss, and the Interim Management Report presents a true and fair view of the company's assets, liabilities, financial position, and profit or loss with regard to important events during the first six months of the business year and their impact on the abridged Financial Statements in terms of material risks and uncertainties in the remaining six months of the business year.

Eisenstadt, 19 May 2016

The Management Board

Klaus Kohlhuber Nikolaus Sauer Member of the Member of the

Management Board Management Board

Burgenland Holding AG

Corporate calendar1)

Results Q1–3 2015/16	08.08.2016
Annual results 2015/16	15.12.2016

1) Preliminary.

Basic information

Share capital	EUR 21.81m
Denomination	3 million no-par bearer shares
Majority shareholder	EVN AG
Identification number (ISIN)	AT0000640552
Ticker symbols	BHAV.VI (Reuters); BURG AV (Bloomberg); AT; BHD (Dow Jones)
Stock exchange listing	Vienna

Imprint

Burgenland Holding AG

Technologiezentrum Marktstraße 3 A-7000 Eisenstadt Austria

Head of Investor Relations Alexander Sipek

Phone: +43 2236 200-12360 Fax: +43 2236 200-2030 E-mail: investor.relations@buho.at