Burgenland Holding AG

Interim / Quarterly Report • May 28, 2015

Interim Financial Report 2014/15

1 October 2014 – 31 March 2015

Interim Financial Report 2014/15 Content

Corporate profile	3
Burgenland Holding AG share	4
Burgenland Holding AG – HY1 2014/15	5
Business development	5
Condensed Interim Financial Statements	6
Notes	7
Interim Management Report	7
Energie Burgenland AG – Q1 2014/15	8
Statement of the Management Board on the Interim Financial Report	9

Key figures HY1 2014/15

Burgenland Holding AG		2014/15 HY1	2013/14	Change in %
Balance sheet total	EURm	86.5	1) 78.2	9.6
Equity	EURm	78.4	1) 78.2	2.6
Investment income	EURm	8.3	2) 8.3	–
Net income for the period	EURm	8.2	2) 8.2	–

1) As of 30 September 2014.

2) HY1 2013/14

Energie Burgenland AG		2014/15 Q1	2013/14 Q1	Change in %
Electricity sales volumes	GWh	317.9	331.6	–4.1
Electricity network distribution volumes	GWh	431.3	436.8	–1.3
Natural gas sales volumes	GWh	373.8	409.5	–8.7
Natural gas network distribution volumes	GWh	674.0	696.5	–3.2
Revenue	EURm	89.1	88.3	0.9
Pre-tax profit	EURm	8.8	10.5	–16.2
Balance sheet total	EURm	895.8	935.6	–4.3
Equity1)	EURm	320.2	319.9	0.1

1) Including untaxed reserves

Energising the 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

Europe and the US continued to show diverging economic growth rates in the reporting period from October 2014 to March 2015. This was also reflected in the respective central bank policies of the two economic blocks. While the Federal Reserve (Fed) is already discussing future interest rate increases, the European Central Bank (ECB) started buying bonds on a large scale in March in order to stimulate the economy. However, the negative impact of various geopolitical risks surrounding the conflicts in Ukraine, the Middle East, and in Africa can still be felt.

The international stock markets maintained their positive trend in the current reporting period, with some of them hitting new all-time highs. This is especially true for the leading German DAX index, which has managed to build on its positive performance particularly since the beginning of the year – driven by the ECB's expansive monetary policy – and has surged by 26.3% since early October 2014. In the same period, the leading American Dow Jones index only managed a gain of 4.3%.

Vienna's leading ATX index recorded an increase of 13.9% in the past six months; especially for energy companies the environment remained difficult. Nevertheless, the share price of Burgenland Holding AG still rose 15.53% and stood at EUR 51.99 as of March 31, 2015. This corresponds to a market capitalisation of EUR 156m. Daily trading volume averaged 27 shares during the reporting period, and the weighting of the share in Vienna's WBI index as of December 31, 2015 was unchanged at 0.18%.

Stock performance		2014/15 HY1	2013/14 HY1
Average daily volume	Number	27	32
Total share volume	EURm	0.17	0.17
Highest price	EUR	60.00	49.60
Lowest price	EUR	44.51	37.01
Share price at the end of March	EUR	51.99	44.10
Market capitalisation at the end of March	EURm	156	132
WBI weighting at the end of March	%	0.18	0.15

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

Burgenland Holding AG HY1 2014/15

Highlights

• Dividend payout of Energie Burgenland AG at last year's level
• Stable net income for the period at EUR 8.2m
• Outlook 2014/15: Profit for the year expected to be at last year's level

Burgenland Holding AG – Key figures		2014/15 HY1	2013/14	Change in %
Balance sheet total	EURm	86.5	1) 78.2	9.6
Equity	EURm	78.4	1) 78.2	2.6
Investment income	EURm	8.3	8.32)	–
Net income for the period	EURm	8.2	8.22)	–

1) As of 30 September 2014 2) HY1 2013/14

Income situation

In the first six months of 2014/15, both the investment income and the net income for the period – at EUR 8.3m and EUR 8.2m, respectively – were at the levels of the corresponding period. Investment income of Burgenland Holding AG for the reporting period includes the dividend payout of Energie Burgenland Holding AG for the 2013/14 business year.

Balance sheet and capital structure

As of 31 March 2015, the balance sheet total amounted to EUR 86.5m, thus 9.6% higher than at the balance sheet date of 30 September 2014. This increase was due to the account payable resulting from the agreed dividend payout of Energie Burgenland AG already recognised as of the balance sheet date.

Since the dividend payout of Burgenland Holding AG in the amount of EUR 8.1m had already been determined by the Annual General Meeting as of the balance sheet date 31 March 2015, it was recorded as a liability and caused the equity ratio to drop from 99.9% as of the balance sheet date of 30 September 2014, to 90.6% in the first six months of 2014/15.

Outlook

Due to the fact that the dividend payout of Energie Burgenland AG from the net profit for the 2013/14 business year has already been entered in the books, no major changes in the result of Burgenland Holding AG are to be expected for the 2014/15 business year after the first six months of 2014/15.

Condensed Interim Financial Statement as of 31 March 2015

Balance sheet	in TEUR	31.03.2015	30.09.2014
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		6,775.6	6,877.0
2. Receivables from companies in which an
investment share exists		8,330.0	0.0
3. Other receivables		32.8	27.4
		15,138.4	6,904.5
II. Cash at banks		7.9	8.7
		15,146.3	6,913.1
C. Deferred expenses and accrued income		15.1	4.9
Total assets		86,486.7	78,243.3
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)		4,642.0	4,642.0
IV. Net profit		8,254.8	8,103.8
		78,383.2	78,232.2
B. Provisions Other provisions I.		3.5	11.1
		3.5	11.1
C. Liabilities
I. Payables to affiliated companies		5,963.9	0.0
II. Other liabilities		2,136.1	0.0
		8,100.0	0.0
Total equity and liabilities		86,486.7	78,243.4
		2014/15 HY1	2013/14 HY1
Income statement Other operating income	in TEUR	0.2	0.3
Other operating expenses		–100.0	–100.1
Operating result		–99.8	–99.8
Investment income		8,330.0	8,330.0
Other interest and similar income		20.7	15.5
Interest and similar expenses		0.1	0.0
Financial result		8,350.8	8,345.5
Pre-tax profit		8,251.0	8,245.7
Taxes on income		0.0	–0.9
Income for the period		8,251.0 3.8	8,244.8 8.4
Profit carry-forward Net profit for the period		8,254.8	8,253.2

Notes

General accounting principles

The Interim Financial Statements for the period from 1 October 2014 to 31 March 2015 were prepared with regard to Generally Accepted Austrian Accounting Principles.

The Interim Financial Statements as of 31 March 2015 were neither subject to a full audit nor a review by an auditor.

Notes to the balance sheet

Receivables from companies in which an investment share exists comprise exclusively receivables from dividend income from associated companies.

As of the balance sheet date of 31 March 2015, shareholders' equity stood at EUR 78.4m, thus EUR 0.2m, or 2.6%, higher than on the balance sheet date of 30 September 2014. The position "Other provisions" relate to the compensation of Supervisory Board members of Burgenland Holding AG.

The position "Payables to affiliated companies" comprises exclucively liabilities vis-à-vis EVN AG in connection with the resolved dividend payout. The distribution to the other shareholders of Burgenland Holding AG is recorded under "Other Liabilities".

Notes to the income statement

At TEUR –99.8, the operating result for the first six months of 2014/15 remained unchanged.

The investment income of Burgenland Holding AG for the first six months of 2014/15 comprises the dividend payout of Energie Burgenland AG. On 24 March 2015, the Annual General Meeting of Energie Burgenland AG resolved to distribute a dividend of EUR 17.0m out of the net profit as of 30 September 2014, of which EUR 8.33m are allocated to Burgenland Holding AG.

Mostly due to higher interest income compared to the corresponding period, the other financial result for the reporting period rose by TEUR 5.2 to TEUR 20.7.

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 2014/15 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 changes in the result are to be expected for the second half of 2014/15. 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 2014/151)

Highlights

• Start of civic participation wind power Baumgarten II
• Reduction in electricity prices by 10% as of Oct 1, 2014.
• Refurbishment program natural gas grid
• Building photovoltaic plant Eisenstadt
• Sale of shares in Energowind Negresti s.r.l. and Energowind RO s.r.l.
• Liquidation of stake in Warminska Sila Wiatru Sp. z o.o.

		2014/15	2013/14	Change
Energie Burgenland AG – Group		Q1	Q1	in %
Electricity sales volumes	GWh	317.9	331.6	–4.1
Electricity network distribution volumes	GWh	431.3	436.8	–1.3
Natural gas sales volumes	GWh	373.8	409.5	–8.7
Natural gas network distribution volumes	GWh	674.0	696.5	–3.2
Revenue	EURm	89.1	88.3	0.9
Pre-tax profit	EURm	8.8	10.5	–16.2
Balance sheet total	EURm	895.8	935.6	–4.3
Equity2)	EURm	320.2	319.9	0.1
Gross cash flow	EURm	15.8	20.3	–22.2

2) Including untaxed reserves

Energy sales and supply

In the first quarter of the 2014/15 business year, electricity sales to final customers amounted to 317.9 GWh, which corresponds to a 4.1% decrease compared to the same period last year. Compared to the previous business year, grid sales fell 1.3% to 431.3 GWh. Natural gas sales to final customers amounted to 373.8 GWh (last year: 409.5 GWh), with natural gas grid sales dropping 3.2% to 674.0 GWh.

Income situation

The Group's sales revenues amounted to EUR 89.1m. The increase compared to last year is the result of a rise in wind power thanks to expansion and acquisitions of biomass plants, while Energie Burgenland Vertrieb GmbH & Co KG showed a decrease. Pre-tax profit amounts to EUR 8.8m, which represents a decrease of EUR 1.7m compared to the previous year.

Balance sheet and capital structure

As of December 31, 2014, the balance sheet total amounted to EUR 895.8m, with non-current assets (approx. EUR 771.8m) accounting for roughly 86.2% of total assets. The decrease in non-current assets compared to last year is mainly the result of the sale of securities. Shareholders' equity increased to EUR 320.2m as of December 31, 2014, resulting in an equity ratio of 35.8%. Gross cash flow was EUR 15.8m.

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. In this context, plans for the current business year include, among other projects, the start of construction of a new 110/30-kV transformer station in Bruckneudorf including a 110kV line connection.

A further issue will be the implementation of energy saving measures in connection with the Energy Efficiency Act.

¹⁾ The information on performance refers to the interim group accounts of Energie Burgenland AG for the period October to December for the 2014/15 business year as of 31 December 2014. For comparison, we present the figures from the interim group accounts as of 31 December 2013. The consolidation scope comprises 2 fully consolidated, two 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, 22 May 2015

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 2014/15	06.08.2015
Annual results 2014/15	10.12.2015

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