DGAP-Adhoc

VERBUND AG: Updated Financial Outlook for 2013

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

12.06.2013 17:42

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London, June 12, 2013 VERBUND, Austria's leading utility and one of
Europe's largest producers of hydropower, updated the financial outlook for
financial year 2013 on the occasion of today's analyst day in London.

The asset swap with E.ON was completed on April 24, 2013. As part of this
transaction, VERBUND sold its 50% interest in Enerjisa Enerji A.S. in
Turkey to E.ON and acquired E.ON shares in 8 run-of-river power plants in
Germany in exchange. In addition to eliminating planned investments in
Turkey, this results in immediate ongoing cash inflows and significant
favourable non-recurring effects in the half-year result in the amount of
approximately EUR1.3bn.

Economic conditions for electricity suppliers in Europe have deteriorated
even more in recent weeks. Wholesale prices for electricity remain under
sustained pressure. This is primarily a result of the massive
oversubsidisation of new renewable energy resulting from government
subsidies in combination with a non-functioning CO2 market. Gas power
plants are under massive economic pressure from these factors along with
long-term, overpriced gas supply agreements that are linked to the price of
oil. To counteract these negative developments, VERBUND reduced the capital
expenditure programme by an additional EUR300m through 2017 to EUR1.2bn,
introduced cost reductions cumulatively amounting to EUR130m for the years
2013 through 2015 and realised divestments amounting to approximately
EUR900m.

Trigger factors for impairment tests emerged as a result of the poor market
environment. On the basis of these tests, VERBUND determined a need for
significant, yet non-cash impairment losses in accordance with IFRS
standards. With regard to gas, impairment losses must be recognised in the
amount of EUR659m for the combined cycle gas turbine power plants in
Austria and France, and EUR371m for the interest in Sorgenia S.p.A.
(Group). In addition, further impairments of EUR96m must be recognised for
renewable energy projects and in the equity interest area.

Based on the effects of the asset swap and the effects from impairment
tests, VERBUND expects an EBITDA of at least EUR1,150m (-7% compared with
2012) and a Group result of at least EUR600m (+54% compared with 2012) for
financial year 2013. The plan for 2013 is based on a hydro coefficient of
1.05. Management plans to distribute a dividend of EUR1 per share for 2013
are unchanged.

Further information and the presentation for the analyst day are available
at www.verbund.com

Contact:
Andreas Wollein
Head of Group Finance and Investor Relations
T.: [phone] - 52604
F.: [phone] - 52694
mailto:[e-mail]


12.06.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language: English
Company: VERBUND AG
Am Hof 6A
1010 Wien
Austria
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
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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