VERBUND AG — Earnings Release 2009

Apr 28, 2009

News Details

Ad-hoc | 28 April 2009 07:59

Österreichische Elektrizitätswirtschafts AG: quarter 1/2009: Result just slightly below the level recorded in the previous year in spite of the poor water supply and negative one-off effects

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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In quarter 1/2009, Verbund, Austria's leading electricity company, achieved
a result which, despite the decline in the spot market prices, a
below-average water supply and negative one-off effects, was only slightly
below the result recorded in the corresponding period of the previous year.
Sales revenue fell by 1.1 % to EUR 881.6 million, the operating result
declined by 7.2 % to EUR 256.0 million and the group result was down 5.9 %
at EUR 197.8 million.

The control-specific ratios displayed the following development: The EBIT
margin sank from 30.9 % to 29.0 %, gearing worsened from 75.6 % to 91.2 %
and the operating cash flow fell from EUR 309.3 million to EUR 207.8
million. The Economic Value Added (EVA), the control-specific ratio for
value creation within the Verbund Group, sank by EUR 36.3 million to EUR
129.3 million.

Ratios Unit Q1/2008 Q1/2009 Change

Sales revenue million EUR 891.7 881.6 -1.1 %
Operating result million EUR 275.9 256.0 -7.2 %
Group result million EUR 210.3 197.8 -5.9 %
Economic value added million EUR 165.6 129.3 -21.9 %
Gearing % 75.6 91.2 -20.7 %
Operating cash flow million EUR 309.3 207.8 -32.8 %

Hedging strategy secures higher selling prices

Triggered by the economic downturn, the spot market prices already started
to fall in the second half of 2008. This trend also continued in quarter
1/2009. The prices for day-ahead supplies on the German electricity
exchange EEX in quarter 1/2009 came to an average of EUR 47.4/MWh for base
load and EUR 60.9/MWh for peak load and were therefore almost 16 % down on
the values recorded in the corresponding period the previous year. On the
other hand, the average prices for forward contracts base 2009 traded in
2008 came to EUR 70.3/MWh and were 25.9 % higher than the level recorded in
the previous year (EUR 55.8/MWh). The average price for front year peak
2009 came to EUR 99.4/MWh in the trading year 2008 and was therefore 25.3 %
higher than in the previous year (EUR 79.3/MWh). Thanks to its consequent
hedging strategy - more than 60 % of the electricity that is generated was
already sold in 2008 on a year-ahead basis for 2009 - Verbund was able to
raise its average sales prices in spite of the strong drop in the spot
market prices.

Water supply below the long-term average

In quarter 1/2009, the water supply of the Austrian rivers, which is
measured with a hydro coefficient, came to 0.97 and therefore lay three
percentage points below the average for the last 30 years and six
percentage points below the value recorded in the previous year. Generation
at the run-of-river power plants therefore displayed a clear drop compared
to the previous year. Generation in the storage power plants on the other
hand, was increased by almost 10 % as a result of the high reservoir levels
compared to 2008. In total, hydraulic generation was down 4.4 % or 233 GWh
compared to the previous year. Thermal generation declined by 12.1 % or 139
GWh on account of the lower spot market price level. In total, electricity
generation dropped by 5.8 % or 372 GWh to 6,042 GWh.

One-off effects in operating result and financial result

In quarter 1/2009, the earnings development of the Verbund Group was marked
by one-off accounting measures which had an overall negative impact on the
operating result in the amount of approx. EUR 33.2 million and a positive
effect on the financial result in the amount of approx. EUR 19.2 million.

Outlook

We expect that the economic conditions will remain difficult throughout
fiscal 2009. In spite of the unfavorable conditions, we aim, on the basis
of an average water supply, to achieve similar results to those reported in
the previous year. In any case, we intend to adhere to our current dividend
policy.

The full report for the result quarter 1/2009 can be seen on our homepage
at http://www.verbund.at.

Contact:
Andreas Wollein
Head of Group Finance and Investor Relations
T.: +43 (0)50313 - 52604
F.: +43 (0)50313 - 52694
mailto:investor@verbund.at

28.04.2009 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: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, Hamburg, Düsseldorf, München,
Stuttgart; Foreign Exchange(s) Wien

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