VERBUND AG — Earnings Release 2011

Feb 29, 2012

News Details

Ad-hoc | 29 February 2012 07:59

VERBUND AG: result for the 2011 financial year: satisfactory business performance

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

29.02.2012 07:59

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 utility, presents a satisfactory business
performance for financial year 2011 in light of the difficult conditions in
the energy market environment and the overall economy. A dividend of
EUR0.55 per share will be proposed to the Annual General Meeting on 12
April 2012.

Key figures
Unit 2011 2010 Change
Revenue EURm 3,865.4 3,307.9 16.9%
Operating result EURm 1,001.6 828.5 20.9%
Operating result before effects from
impairment tests EURm 799.4 829.3 -3.6%
Return on sales (ROS; EBIT margin) % 25.9 25.0
EBITDA EURm 1,041.1 1,059.2 -1.7%
EBITDA margin % 26.9 32.0
Group result EURm 352.6 400.8 -12.0%
Cash flow from operating activities EURm 829.9 778.2 6.6%
Gearing % 81.9 96.8
(Proposed) dividend per share EUR 0.55 0.55
Payout ratio % 54.2 47.7

Revenue and operating result up, Group result down

Revenue rose 16.9% to EUR3,865.4m in 2011. The operating result rose 20.9%
to EUR1,001.6m. The hydro coefficient, which is the measured value for the
generation from run-of-river and pondage power plants, was 0.89 in 2011, or
11% below the long-term average and 10 percentage points below the
prior-year figure. At an average of EUR49.9/MWh, electricity prices
applicable for the 2011 financial year (forward contracts 'Year Base 2011'
traded in 2010) were up 1.4% over the previous year's level. The changed
market environment for the energy sector had led to impairment tests of
VERBUND power plants in the third quarter of 2011, which resulted in an
increase in the operating result after impairment losses were reversed in
the amount of EUR202.2m. Adjusted for the net positive effects from the
impairment tests, the operating result fell only slightly by 3.6% to
EUR799.4m, despite the extraordinarily weak water supply. The Group result
declined by 12.0% to EUR352.6m. The primary cause was the negative impact
of foreign interests accounted for using the equity method, particularly
the non-cash measurement of foreign exchange liabilities on the part of the
Turkish joint venture, and the gas supply contract for the combined cycle
gas turbine power plant in Pont-sur-Sambre/France, which was accounted for
at fair value through profit or loss for the first time.

Outlook for 2012

Regarding the outlook, given the uncertain macroeconomic and financial
environment and the resulting difficult conditions in the energy industry,
it is impossible at present to give a serious forecast for earnings in
2012. Our dividend policy will aim for a payout ratio of approximately 50%
of the Group result.

Please find further information and the annual report 2011 at
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

29.02.2012 DGAP's Distribution Services include Regulatory Announcements,
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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)

End of Announcement DGAP News-Service

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