VERBUND AG — Earnings Release 2015

Nov 4, 2015

News Details

Ad-hoc | 4 November 2015 07:59

VERBUND AG: results for quarters 1-3/2015: sharp upward trend in income thanks to additional revenue from marketing flexible energy products and due to non-recurring effects

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

04.11.2015 07:59

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EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Conditions in the European electricity market remained difficult during
quarters 1-3/2015. Low prices for primary energy sources and CO2 emission
rights have led to a further decrease in wholesale prices on the futures
market and have negatively impacted energy companies' incomes. Moreover,
the volatile nature of energy generation from power plants producing
renewable energy means that greater flexibility is needed in grid
operations. This situation also presents opportunities that VERBUND
succeeded in taking advantage of during the reporting period to generate
additional income by means of flexible products such as control power and
balancing energy and by selling congestion management services.

Despite a further decline in sales prices, the performance of the operating
business showed a clear upward trend in quarters 1-3/2015 due to the
successful implementation of VERBUND's strategy. The business trend was
positively impacted by the Group's measures to increase efficiency, which
reduced personnel expenses and other operating expenses in particular, as
well as its continued implementation of thermal restructuring. Now that the
temporary injunction involving the outage reserve at the Mellach power
plants site has been lifted, VERBUND is re-evaluating all possible options
with respect to that site.

The result was also influenced by non-recurring effects such as the
impairment loss on the Mellach combined cycle gas turbine power plant and
the reversal of provisions due to legal settlements in the Grid segment.
The decrease in the water supply to well-below-average levels had a
negative impact. The hydro coefficient declined to 0.94, 6.0% below the
long-term average and five percentage points below the prior-year
comparative. Generation from hydropower therefore fell by 1,263 GWh.
Overall, VERBUND's own generation amounted to 24,968 GWh in the first three
quarters, representing a decrease of 2.9% compared with the prior-year
period.

The aforementioned factors led to an increase in EBITDA of 15.0% to
EUR727.7m. Adjusted for non-recurring effects, EBITDA decreased by 1.0% to
EUR681.2m. The Group result rose by 258.2% to EUR228.7m. Adjusted for
non-recurring effects, the Group result increased by 40.7% over the
prior-year comparison period to EUR245.2m.

Outlook for 2015
Assuming an average own generation from hydropower in the fourth quarter,
we expect EBITDA for financial year 2015 to be approximately EUR900m and
the Group result to be approximately EUR240m. The planned payout ratio for
2015 will amount to around 50% of the Group result after adjustment for
non-recurring effects.

Key figures
Unit Q1-3/2014** Q1-3/2015 Change
Revenue* EURm 2,088.7 2,106.5 0.9%
EBITDA EURm 633.0 727.7 15.0%
Operating result EURm 205.7 386.4 87.8%
Group result EURm 63.8 228.7 258.2%
Earnings per share EUR 0.18 0.66 258.2%
EBIT margin* % 9.8 18.3 -
EBITDA margin* % 30.3 34.5 -
Cash flow from
operating activities EURm 612.2 581.6 -5.0%
Free cash flow after
dividends EURm -133.6 393.6 -
Gearing % 76.1 68.9 -

* The comparative figures have been adjusted retrospectively in accordance
with IAS 8.
** The calculation of the figures takes account of the profit after tax
from discontinued operations (equates to the profit after tax attributable
to the French companies Pont-sur-Sambre Power S.A.S. and Toul Power S.A.S.,
which were classified as "held for sale" until their deconsolidation in
2014).

Further information and the 1-3/2015 interim report can be found at
www.verbund.com/cc/en > 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

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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)

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