VERBUND AG — Earnings Release 2014

Oct 21, 2014

News Details

Ad-hoc | 21 October 2014 13:46

VERBUND AG: VERBUND raises earnings forecast and dividend for 2014

VERBUND AG / Key word(s): Forecast/Change in Forecast

21.10.2014 13:46

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

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VERBUND AG's management is today announcing that it is raising its earnings
forecast for financial year 2014. Based on the updated planning, VERBUND is
set to generate EBITDA of around EUR770 million (previous forecast: EUR690
million) and a Group result of around EUR85 million (previous forecast:
EUR70 million) in 2014. The planned dividend continues to be based on a
payout ratio of approximately 50% of the adjusted Group result, which will
be around EUR190 million for 2014 (previous forecast: EUR150 million).

These changes to the earnings forecast are mainly due to the following:

• Better water supply
  At 1.10, water supply was above the long-term average in the third quarter
  of 2014. Over the remainder of the year, water supply is expected to be
  average. The new earnings forecast is therefore based on a hydro
  coefficient of 0.99 for 2014 as a whole. EBITDA is positively impacted to
  the tune of around EUR20 million and the Group result to the tune of around
  EUR10 million.

• Positive effects in connection with the sale of the French combined
  cycle gas turbine power plants
  On 6 October 2014, VERBUND and KKR agreed on the sale of the French
  Pont-Sur-Sambre and Toul CCGTs. The contracts were signed on 13 October

• This sale, which took place based on the power plants' carrying
  amounts, resulted in the recognition of a positive, one-off tax effect.
  Group result is positively impacted by the sale of the French CCGTs to the
  tune of around EUR105 million.

• Impairment loss on the wind farms in Romania
  Regulatory intervention in the market for green electricity certificates by
  the Romanian government and a massive surplus of green electricity
  certificates are pushing down revenue at VERBUND's Romanian wind farms. Due
  to trigger factors, an impairment test was performed, revealing the need to
  recognise a write-down. This depresses the Group result by around EUR144
  million.

• Positive effects from the electricity business
  Higher than planned margins from the electricity business have a positive
  effect on the earnings development. EBITDA is positively impacted to the
  tune of around EUR30 million and the Group result to the tune of around
  EUR20 million.

• Higher-than-planned cost savings
  In addition, the positive effects on earnings achieved through the
  systematic programme to reduce costs were higher than planned. This lifted
  EBITDA by around EUR25million and the Group result by around EUR15 million.

The effects in connection with the sale of the French combined cycle gas
turbine power plants and with the impairment loss on the wind farms in
Romania are already fully included in the result for quarters 1-3/2014,
which will be published on 29 October 2014.

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-relations@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: Wien (Amtlicher Handel / Official Market)

End of Announcement DGAP News-Service

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