VERBUND AG — Earnings Release 2011

Sep 8, 2011

News Details

Ad-hoc | 8 September 2011 20:16

VERBUND AG: VERBUND updates its investment plan and provides guidance on its financial outlook at today’s Analysts’ Day

VERBUND AG / Key word(s): Results Forecast/Forecast

08.09.2011 20:16

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London, 8 September 2011: VERBUND announced an update of its investment
plan and provided guidance on its financial outlook for 2011 and 2012 at
the Analysts' Day that took place today in London.

'Our vision is to become one of the most important hydropower generators in
Europe supplemented by environmentally friendly gas and wind technology.
The attractive investment projects in our domestic market Austria/Germany
and the joint ventures under favourable conditions in Italy and Turkey as
well as in other countries are laying the foundation for achieving this
goal,' said Wolfgang Anzengruber, CEO of VERBUND.

Update of the investment plan for 2012-2016
VERBUND announced its intention to invest EUR2.6bn in domestic and
international power plant and network expansion projects between 2012 and
2016 - 62% of which in its domestic market Austria/Germany. Maintaining a
solid 'A'-level investment grade rating will continue to be a requirement
for VERBUND's financial profile. Moreover, the net debt to EBITDA should
not
exceed 4.0x and the gearing should be below 100%. At the
same time, the key profitability ratio ROCE should stay above 8% and the
ratio of cash flow (FFO) to net debt should stay above 20%.

VERBUND financial outlook 2011 and 2012
VERBUND expects an operating result of around EUR780m and a Group result of
approximately EUR380m for 2011. Planning for 2011 was based on an
assumption of a hydro coefficient of 0.92 and an exchange rate of 2.13
Turkish liras per euro (TRY/EUR).
For 2012, VERBUND is planning on an operating result of around EUR900m to
EUR1bn and a Group result of approximately EUR450m to EUR500m. The outlook
for 2012 is based on an average water supply, an average market price for
electricity of EUR57/MWh for base load and EUR71/MWh for peak load and an
exchange rate of 2.17 Turkish liras per euro (TRY/EUR).
Management intends to distribute 45% to 50% of the Group result as
dividends.

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.com

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Language: English
Company: VERBUND AG
Am Hof 6A
1010 Wien
Austria
Phone: 0043-1-53113-52616
Fax: 0043-1-53113-52694
E-mail: investor@verbund.com
Internet: www.verbund.com
ISIN: AT0000746409
WKN: 877738
Indices: ATX
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart; Wien (Amtlicher Handel / Official Market)

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