VERBUND AG — Earnings Release 2009

Mar 2, 2010

News Details

Ad-hoc | 2 March 2010 07:59

Österreichische Elektrizitätswirtschafts AG: 2009 Good result in difficult environment

Österreichische Elektrizitätswirtschafts AG / Final Results/Final Results

02.03.2010 07:59

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Verbund, Austria's leading electricity company, is able to present good
results for fiscal 2009, albeit at a lower level than the record figures
generated in 2008.

Compared to 2008, sales declined by 7.0 % to EUR 3,483.1 million, the
operating result fell by 8.5 % to EUR 1,042.3 million and group result was
down 6.2 % to EUR 644.4 million. The control-specific ratios displayed the
following development: the EBIT margin sank from 30.4 % to 29.9 %, gearing
rose from 80.2 % to 138.3 % and the operating cash flow increased from EUR
934.2 million to EUR 968.0 million.

Despite these lower results, Verbund would like to reinforce the confidence
of its shareholders and, having generated the second best result in the
company's history, will therefore propose to the Annual General Meeting an
increase in the dividend from EUR 1.05 per share to EUR 1.25 per share -
EUR 1.00 per share in regular dividends and EUR 0.25 per share in special
dividends.

Ratios Unit 2008 2009 Change
Sales EUR m 3,744.7 3,483.1 -7.0%
Operating result EUR m 1,138.6 1,042.3 -8.5%
Group result EUR m 686.6 644.4 -6.2%
Gearing % 80.2 138.3 72.4%
Operating cash flow EUR m 934.2 968.0 3.6%
(Proposed)dividend per share EUR 1.05 1.25 19.0%

Earnings development in the past fiscal year was largely influenced by
three factors: low European wholesale prices for electricity, an
above-average water supply and one-off accounting measures.

Average achieved contract price below level of previous year

In the year under review, wholesale prices for electricity, in particular
short-term forward and spot market prices, declined significantly compared
with the previous year, remaining at an extremely low level throughout.
This came as a result of a significant reduction in prices for primary
energy sources, lower demand for electricity and the fall in the price of
CO2 certificates. However, a good proportion of the electricity generated
by Verbund was sold one year in advance at considerably higher prices in
accordance with the company's hedging strategy, thereby cushioning the
negative impact of the weaker short-term prices.

Water supply above the long-term average

The above-average water supply from the rivers that are used to produce
electricity had a positive impact on the result. The hydro coefficient for
2009 lay at 1.06 and was therefore 6% higher than the long-term average and
5% higher than the figure recorded in the previous year. The acquisition of
the Bavarian power plants on the Inn river with effect from September 2009
also had a positive impact on generation of the run-of-river plants. As a
result, more electricity was produced in the run-of-river plants.
Generation in the storage power plants on the other hand, was increased due
to the higher reservoir levels at the beginning of the year compared to
2008 and the favourable inflow conditions as a result of the thaw.

Hydropower generation within the Verbund Group therefore rose by a total of
7.1% or 1,790 GWh. Thermal generation declined by 19.0% or 638 GWh compared
to the previous year on account of the lower spot market price level. In
2009, generation from wind and sun came to 106 GWh. In total, own
generation increased by 1,258 GWh to 29,918 GWh.

Result burdened by one-off accounting measures

As in 2008, the earnings development of the Verbund Group was marked by
one-off accounting measures: these had an adverse effect on the operating
result in the total amount of approx. EUR 60 million and the financial
result was burdened in the amount of approx. EUR 10 million.

Outlook

In fiscal 2009, Verbund reacted to the economic crisis and significantly
reduced its capex program for 2010 to 2015 to EUR 2.7 billion. In spite of
this, Verbund will continue to invest in the expansion of domestic
hydropower, the high-voltage grids and the existing international
activities in Turkey, Italy and France. The company aims to have all power
plants operational when the economy in Europe once again displays
sustainable growth so that it can benefit from the increasing wholesale
prices.

On the basis of the sustained difficult conditions and due to the achieved
significantly lower forward prices for electricity, Verbund expects a
considerably lower operating result and group result as well as lower
dividends in fiscal 2010 despite the restructuring measures and the reduced
capex program.

The full report and further information for the financial year 2009 can be
found 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

02.03.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: 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, Düsseldorf, München, Hamburg,
Stuttgart; Foreign Exchange(s) Wien

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