VERBUND AG — Earnings Release 2013

Oct 29, 2013

News Details

Ad-hoc | 29 October 2013 08:00

VERBUND AG: results for quarters 1-3/2013: Positive income trend despite difficult market environment

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

29.10.2013 08:00

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

---

VERBUND's key figures were as follows in quarters 1-3/2013:

Key figures Unit Q1-3/2012 Q1-3/2013 Change
Revenue EURm 2,294.0 2,409.2 5.0%
EBITDA EURm 936.0 1,094.3 16.9%
Operating result EURm 679.5 113.4 -83.3%
Group result EURm 332.8 510.4 53.4%
Earnings per share EUR 0.96 1.47 53.4%
EBIT margin % 29.6 4.7 -
EBITDA margin % 40.8 45.4 -
Cash flow from
operating activities EURm 583.3 670.2 14.9%
Free cash flow EURm 107.7 500.5 364.7%
Gearing ratio % 82.5 69.9 -

Income performed positively in the first 9 months of 2013 against the
backdrop of a difficult market environment. The operating business was
driven by the good water supply in quarters 1-3/2013. The hydro coefficient
was 1.04, 4.0% above the long-term average but 3 percentage points below
the previous year's figure. Newly acquired power plant interests in Germany
(+1,063 GWh) and higher generation of annual storage and pumped storage
power plants (+187 GWh, or +5.4%) accounted for most of the year-on-year
increase in hydropower generation of 680 GWh. Generation from wind power
rose by 196 GWh to 351 GWh due to the commissioning of installations in
Romania and Germany. However, generation from thermal power plants
decreased by 282 GWh owing to market conditions. Overall, VERBUND's own
generation in quarters 1-3/2013 was 594 GWh higher than in quarters
1-3/2012. However, the overall decline in wholesale electricity prices and
the continuing difficult economic climate for gas power plants put a strain
on business operations.

EBITDA improved by EUR158.3m year-on-year to EUR1,094.3m. The income trend
was also influenced by significant non-recurring effects. Successful
completion of the asset swap with German utility E.ON had a positive
effect, while impairment losses resulting from impairment tests -
particularly in the area of gas power plants - had a negative effect.
Taking into account all non-recurring effects plus additional negative
results from Sorgenia in Italy, the Group result nonetheless increased by
EUR177.7m to EUR510.4m.

Outlook
Based on our updated income trend, we now expect EBITDA for financial year
2013 to be higher than originally forecast at approximately EUR1,250m. The
Group result is expected to amount to around EUR600m. The forecast is based
on a hydro coefficient of 1.03. We plan to distribute a dividend of EUR1
per share for financial year 2013.

Additional information and the interim financial report for quarters
1-3/2013 is available at www.verbund.com > Investor Relations > Latest
financial results.

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

29.10.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---

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: Wien (Amtlicher Handel / Official Market)

End of Announcement DGAP News-Service

---