VERBUND AG — Earnings Release 2013

Mar 5, 2014

News Details

Ad-hoc | 5 March 2014 08:00

VERBUND AG: 2013 results: income trend impacted by non-recurring effects

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

05.03.2014 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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In 2013, VERBUND was confronted with a difficult market environment. This
was characterised by falling wholesale electricity prices - the result of
massive overcapacity in electricity generation, an oversubsidisation of
renewable energy and a non-functioning CO2 market. Unprofitable gas power
plants also had an adverse effect on performance.

The operating business was impacted by the good water supply in rivers in
2013. At 1.07, the hydro coefficient was 7.0% above the long-term average,
but 4 percentage points below the prior-year comparative. Generation from
hydropower nonetheless rose by 458 GWh as a result of the acquisition of
shares in German hydropower plants on the Inn River. At 35,539 GWh,
VERBUND's total own generation in 2013 was 311 GWh higher than in the
previous year.
The decline in wholesale electricity prices and the difficult economic
environment for gas power plants put pressure on operating activities. In
addition, 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 for gas power plants and the minority interest in the
Italian company Sorgenia S.p.A. - had a negative effect.
EBITDA improved year-on-year by 4.9% to EUR1,296.4m. EBITDA adjusted for
non-recurring effects declined to EUR1,154.5m (-9.7%).
The Group result increased by 49.0% to EUR579.9m. At EUR384.5m, the Group
result adjusted for non-recurring effects was 38.5% lower than in 2012.

Discontinued operations
Effective 11 December 2013, the two French combined cycle gas turbine power
plants in Pont-sur-Sambre and Toul were classified as "held for sale",
including the intangible assets and other receivables closely associated
with them. Since the French combined cycle gas turbine power plants also
represent a geographical area of operation, the results attributable to
them must be presented separately from continuing operations. Result after
tax from discontinued operations amounted to EUR-351.4m (2012: EUR0.2m).

Dividend for 2013
As announced, a dividend of EUR1 per share will be proposed for financial
year 2013 at the Annual General Meeting on 9 April 2014. This dividend will
be made up of a basic dividend of EUR0.55 per share plus a special dividend
of EUR0.45 per share. The reason for distributing a special dividend is the
successful completion of the asset swap with E.ON in 2013.

Outlook for 2014
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. For 2014, we are planning a payout ratio of around
50% of the Group result adjusted for non-recurring effects.

Key figures Unit 2012 2013 Change
Revenue EURm 3,174.3 3,269.9 3.0%
EBITDA EURm 1,235.4 1,296.4 4.9%
Operating result EURm 900.2 147.1 -83.7%
Group result EURm 389.3 579.9 49.0%
Earnings per share EUR 1.12 1.67 49.0%
EBIT margin % 28.4 4.5 -
EBITDA margin % 38.9 39.6 -
Cash flow from
operating activities EURm 1,034.7 837.4 -19.1%
Free cash flow EURm -164.4 546.7 -
Gearing % 64.9 66.1 -
(Proposed)
dividend per share EUR 0.60 1.00 66.7%

Although the result attributable to the French CCGTs is to be presented
separately from continuing operations in accordance with IFRS 5, the key
figures relate to the combined result from the Group's continuing and
discontinued operations in order to provide better informative value.

Further information as well as the 2013 Annual Report can be found 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-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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