VERBUND AG — Earnings Release 2007

Oct 23, 2007

News Details

Ad-hoc | 23 October 2007 08:00

Österreichische Elektrizitätswirtschafts AG: Verbund continues growth development in quarters 1-3/2007

Österreichische Elektrizitätswirtschafts AG / Quarter Results

Release of an Ad hoc announcement, transmitted by DGAP - a company of
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The issuer is solely responsible for the content of this announcement.

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Despite the prevailing difficult framework conditions, Verbund, Austria's
leading electricity company, is nonetheless able to present an improved
result for quarters 1-3/2007. Sales revenue rose by 5.8 % to 2,256.6
million €, the operating result improved by 6.1 % to 685.1 million € and
the group result rose by 11.5 % to 457.9 million €.

Control relevant key figures developed as follows: The EBIT margin
increased from 30.3 % to 30.4 %, the EBITDA margin, at 36.4 %, remained
very high; the net gearing, as a result of borrowing activities to finance
foreign business, rose from 70.4 % to 86.8 %. The operating cash flow,
mainly as a result of higher income tax payments on earnings, dropped by
24.2 % to 512.6 million €.

Ratios Unit Q1-3/2006 Q1-3/2007 Change

Sales Revenue € million 2,128.2 2,252.6 5.8 %
Operating Result € million 645.9 685.1 6.1 %
Group Result € million 410.5 457.9 11.5 %
Net Gearing % 70.4 86.8 -23.3 %
Operating Cash-flow € million 676.5 512.6 -24.2 %

Hedging strategy secures higher selling prices

The prices for day-ahead supplies on the German electricity exchange EEX in
quarters 1-3/2007 came to an average of € 31.3/MWh for base load and were
therefore more than 40 % down on the values recorded in the corresponding
period the previous year. The prices for peak load dropped by almost 42 %.
This is attributable mainly to the sustained decline in the prices of CO2
emission rights. Despite the weak spot market prices in quarters 1-3/2007,
Verbund was able to increase the average selling price as a result of its
proven hedging strategy – approx. 60 % of the generated electricity was
already sold in 2006 at high forward prices for 2007.

Water supply below the long-term average

The average water supply of the rivers, which is measured with a hydro
coefficient, continues to lie below the long-term average. Although the
hydro coefficient in September was more than 20 % above the long-term
average, following the strong decline in generation in the months of April
to August, the hydro coefficient for quarters 1-3/2007, at 0.91, still
remains 7 percentage points below the value reported in the corresponding
period last year.

End customer business expanded

On 16 August 2007, the buyback of electricity distribution company Austrian
Power Vertriebs GmbH (APC) from Slovene energy group Istrabenz took place.
By repurchasing the company, Verbund was able to acquire an additional 100
key accounts and further expand its end customer business.

Expansion of Gerlos II power plant now completed

Full operation of the new 135 MW Pelton machine unit at Gerlos power plant
commenced on 01 October 2007. The new plant has tripled the output of the
Gerlos hydropower plant, namely, from 65 MW to 200 MW.

Founding of VERBUND-Austrian Renewable Power (ARP)

The new subsidiary, VERBUND-Austrian Renewable Power (ARP), was founded on
19 September 2007. The company aims to create new generation capacities
with an output of up to 400 MW in Austria and abroad by 2015 using wind
power, small-scale hydropower, solar power or biomass.

LNG Terminal Project in France

In quarter 3/2007, Verbund participated with 24.5 % in a large-scale
project regarding to an LNG (liquid natural gas) terminal including a
regasification plant near Le Havre-Antifer. With that, Verbund has secured
the rights in a third of the capacities of the terminal, corresponding to
an annual volume of approx. 3 billion m3 of gas.

Positive outlook for 2007

Despite an unfavorable market environment, we stand by our ambitious goals
for fiscal 2007, provided that an average water supply for the remainder of
the year is given, and aim to achieve a 10 % improvement in the operating
result and a 15 % increase in the group result as compared with 2006.

Detailed information of the results of quarters 1-3/2007 can be found at
www.verbund.at. You will also find a user-friendly version of the interim
report online.

Contact:
Mag. Andreas Wollein
Leiter Finanzmanagement und Investor Relations
T.: +43 (0)5 03 13 - 52604
F.: +43 (0)5 03 13 - 52694
mailto:investor@verbund.at

23.10.2007 Financial News transmitted by DGAP

Language: English
Issuer: Österreichische Elektrizitätswirtschafts AG
Am Hof 6A
1010 Wien
Österreich
Phone: 0043-1-53113-52616
Fax: 0043-1-53113-52694
E-mail: andreas.wollein@verbund.at
Internet: www.verbund.at
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Amtlicher Markt in Wien, Frankfurt (General Standard);
Freiverkehr in Berlin, Stuttgart, München

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