VERBUND AG — Earnings Release 2008

Feb 25, 2009

News Details

Ad-hoc | 25 February 2009 07:59

Österreichische Elektrizitätswirtschafts AG: 2008 again very good result in an overall difficult economic environment

Österreichische Elektrizitätswirtschafts AG / Final Results

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

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Verbund, Austria's leading electricity company, once again generated a very
good result in fiscal year 2008. In spite of general conditions that have
become more difficult, Verbund was able to increase sales by 23.2% to EUR
3,744.7 million, improve the operating result by 24.3% to EUR 1,138.6
million, and increase the group result by 18.6% to EUR 686.6 million. On
the basis of the very positive result, the Managing Board will propose a
dividend increase of 16.7 % to EUR 1.05/share to the General Meeting.

The control-specific business key ratios developed as follows: The EBIT
margin increased from 30.2% to 30.4%; gearing worsened from 70.0% to 80.2%;
the operating cash flow was increased from EUR 807.6 million to EUR 934.2
million. The Economic Value Added (EVA), the control-specific key ratio for
the Verbund Group for value creation, increased in fiscal year 2008 in
spite of an increase in the capital costs by EUR 1.3 million to EUR 440.8
million.

Ratios Units 2007 2008 Change
Sales revenue EUR million 3,038.3 3,744.7 23.2%
Operating result EUR million 916.1 1,138.6 24.3%
Group result EUR million 579.2 686.6 18.6%
Economic value added EUR million 439.5 440.8 0.3%
Gearing % 70.0 80.2 -14.6%
Operating cash flow EUR million 807.6 934.2 15.7%
(Proposed) Dividends per share EUR 0.90 1.05 16.7%

Higher sales prices achieved in the European electricity markets

It was primarily the distinct recovery of the spot market prices that had a
very positive effect on the sales prices. There were no effects worth
mentioning from the longer term futures market, because Verbund sold its
production in advance to a great extent due to its marketing strategy, and
the prices for the front year in trading years 2006 and 2007 essentially
experienced sideways movement.

Therefore, Verbund was able to considerably increase its sales prices in
the European electricity markets. The average contract price that was
achieved was 63.34 EUR/MWh (2007: 53.15). As of December 31, 2008, 68% of
its own generation for 2009 had already been sold for an average of 70.28
EUR/MWh.

Higher generation from hydropower/One-time effect lowers thermal
generation

The water supply of the local rivers, which is measured with a hydro
coefficient, was 1.01 in 2008 which puts it 1% above the average of the
past 30 years and 4% above last year's value. The generation of the
run-of-river power plants therefore increased considerably compared to last
year. The generation from storage power plants was maintained at last
year's level. On the whole, electricity from hydropower increased by 987
GWh to 25,308 GWh. There was a drop in the generation from thermal power
plants of 634 GWh to 3,352 GWh, which was essentially caused by the
one-time renewal work that was carried out at the Dürnrohr power plant from
April to June. At 28,660 GWh, total generation of the group was 1.2% higher
than last year's level.

Negative one-time effects in the operating result and in the financial
result

The one-time effects in the operating result amounting to around EUR 30.0
million are mainly in regard to changes in the social capital as well as
extraordinary maintenance. The one-time effects in the financial result
amounting to around EUR 110.0 million are primarily attributable to the
devaluation requirement of Energie Klagenfurt GmbH determined during the
impairment test and the assessment related devaluations of the assessment
portfolio due to the financial market crisis.

Constant result is the aim for 2009

In 2009, Verbund is aiming for the results to remain the same even with the
continued difficult general conditions and also assuming an average water
supply. Furthermore, Verbund wants to keep its current dividend policy.

The full report and further information can be seen on
http://www.verbund.at.

Contact:
Andreas Wollein
Head of Group Finance and Investor Relations
T.: +43 (0)5 03 13 - 52604
F.: +43 (0)5 03 13 - 52694
mailto:investor@verbund.at

25.02.2009 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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