VERBUND AG — Earnings Release 2014

May 7, 2014

News Details

Ad-hoc | 7 May 2014 08:00

VERBUND AG: VERBUND result for quarter 1/2014: difficult market environment impacts result

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

07.05.2014 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.

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The difficult economic environment for VERBUND continued to worsen in the
first quarter. The level of wholesale prices for electricity has further
declined. Three factors in particular are responsible: excessive subsidies
for new renewable energy sources, excess capacities in the European
electricity market and the non-functioning CO2 market in Europe. Neither
the stabilisation of emission trading in the form of "backloading" resolved
by the EU nor the planned reform of the green energy subsidies in Germany
suffice to improve the energy market environment.

The operating business was characterised by a below-average water supply
from rivers in quarter 1/2014. The hydro coefficient of 0.93 was 7.0% below
the long-term average and 27 percentage points below the previous year's
level. Generation from hydropower consequently fell by 1,077 GWh. In total,
VERBUND's own generation of 6,544 GWh in quarter 1/2014 was 22.9% lower
than in the first quarter of the previous year.
The negative operating environment is also reflected in falling average
contract prices. Thus, EBITDA fell significantly by 33.9% to EUR207.1m and
the Group result of EUR40.9m for the first quarter was down 46.8%
year-on-year.

Outlook for 2014 confirmed
Based on average own generation from hydropower, we expect EBITDA for
financial year 2014 to be approximately EUR850m and the Group result to be
approximately EUR150m. A payout ratio of around 50% of the Group result
after adjustment for non-recurring effects is planned for 2014.

Key figures Unit Q1/2013 Q1/2014 Change
Revenue EURm 861.6 680.4 -21.0%
EBITDA EURm 313.4 207.1 -33.9%
Operating result EURm 233.9 110.7 -52.7%
Group result EURm 77.0 40.9 -48.6%
Earnings per share EUR 0.22 0.12 -48.6%
EBIT margin % 27.1 16.3 -
EBITDA margin % 36.4 30.4 -
Cash flow from
operating activities EURm 285.7 174.6 -38.9%
Free cash flow EURm 326.3 1.4 -
Gearing % 61.4 66.5 -

Since 1 January 2014, IFRS 11 "Joint Arrangements" has replaced the
previous rules under IAS 31 "Interests in Joint Ventures". As a result of
the new rules, the interest in Ennskraftwerke Aktiengesellschaft is to be
classified as a joint operation. Thus, already reported figures were
adjusted.
Although the result attributable to the French CGGTs is to be presented
separately from continuing operations in accordance with IFRS 5, to enhance
comparability the key figures relate to the combined result from the
Group's continuing and discontinued operations.
Further information as well as the interim financial report for quarter
1/2014 can be found under 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-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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