VERBUND AG — Earnings Release 2011

Apr 28, 2011

News Details

Ad-hoc | 28 April 2011 08:00

VERBUND AG: Q1/2011: Development of operating result positive

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

28.04.2011 08:00

Dissemination 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, presents a considerable
better operating result in quarter 1/2011, but a declining Group result due
to one-off effects in the previous year that do not apply in the current
reporting period.

Key figures
Unit Q1/2011 Q1/2010 Change
Revenue EURm 917.7 806.4 13.8%
Operating result EURm 215.8 194.3 11.0%
EBIT Margin % 23.5 24.1 -
EBITDA EURm 273.6 250.4 9.3%
Group result EURm 108.5 119.8 -9.5%
Cash flow from operating activities EURm 357.0 225.1 58.6%
Gearing % 105.1 134.1 -

The operating result increased in quarter 1/2011 by 11.0% to EUR215.8m.
This positive trend can be attributed above all to an increase in own
generation from hydropower on the part of VERBUND. At 0.99, the hydro
coefficient may have been 1% below the long-term average, but it was 7
percentage points above the previous year's level. Therefore, generation at
the run-of-river power plants increased considerably compared to the same
period in the previous year. In contrast, generation at the annual storage
power plants decreased as a result of the lower storage levels at the
beginning of the year. Thermal generation was also up. This can be
attributed to a stronger use of the thermal power plants in Austria as well
as the purchase of full electricity from the Pont-sur-Sambre power plant in
France since 1 March 2011. Overall, VERBUND's own generation increased by
365 GWh. Group result decreased by 9.5% to EUR108.5m. The decrease in the
Group result can be attributed mainly to the positive one-off effect (tax
benefits for investments) that affected the result from equity interests in
Italian Sorgenia S.p.A. (Group) in the previous year, but did not apply in
the current reporting period.

Effects of the nuclear crisis in Japan
As a consequence of the nuclear crisis in Japan, Germany temporarily shut
down its seven oldest nuclear power plants as well as the earlier
disconnected power plant Krümmel in the middle of March. Other nations
resolved to review existing and new nuclear reactors. This led to a
considerable increase in wholesale prices for electricity in Europe, in
particular with respect to futures market prices.
As part of the hedging strategy, VERBUND sells around 80% of the annual own
generation on the futures market and in particular one year in advance, the
remaining 20% are sold at spot market prices. Thus, the elevated wholesale
prices hardly influenced the Q1/2011 results.

Outlook unchanged
On the basis of an average water supply, we expect the operating result and
the Group result to remain more or less the same in the 2011 fiscal year.
Dividends will continue to be oriented on a payout ratio of 45% to 50%.

Please find further information and the interim report Q1/2011 on
www.verbund.com

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

28.04.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language: English
Company: VERBUND AG
Am Hof 6A
1010 Wien
Österreich
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)

End of Announcement DGAP News-Service

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