DGAP-Adhoc

VERBUND AG: VERBUND results for quarter 1/2015: positive income trend despite continued challenging conditions

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

06.05.2015 07:58

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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Conditions on the European electricity market remained challenging in
quarter 1/2015. The economy continued to show a weak performance, and
prices for primary energy and wholesale electricity remained low. Three
factors were responsible for the low price levels: excessive subsidies for
new renewable energy sources, overcapacities in the European electricity
market and the non-functioning CO2 market in Europe.

Within this environment, VERBUND systematically implemented the thermal
power restructuring measures which had been decided upon in 2014. The sale
of the French Pont-sur-Sambre and Toul combined cycle gas turbine power
plants (CCGTs) and disposal of the equity interest in Sorgenia in Italy
were both completed in quarter 1/2015.

The operating business was impacted by the above-average water supply in
rivers in quarter 1/2015. At 1.03, the hydro coefficient was 3.0% above the
long-term average and ten percentage points above the previous year's
figure. Generation from hydropower thus rose by 497 GWh. VERBUND's total
own generation reached 7,453 GWh in quarter 1/2015, an increase of 13.9%
compared with the first quarter of the previous year. Despite the negative
operating environment and lower average sales prices, VERBUND succeeded in
increasing earnings. EBITDA increased by 5.2% to EUR217.8m, and the Group
result rose by 54.9% year-on-year to EUR63.4m. The increase can be mainly
attributed to the fact that losses are no longer being incurred from French
thermal production now that the power plants have been sold.

Outlook for 2015 confirmed
On the basis of average own generation from hydropower, we expect EBITDA of
approximately EUR770m and a Group result of approximately EUR180m in
financial year 2015. A payout ratio of around 50% of the Group result after
adjustment for non-recurring effects is planned for 2015.

Key figures Unit Q1/2014* Q1/2015 Change

Revenue EURm 680.4 712.1 4.7%
EBITDA EURm 207.1 217.8 5.2%
Operating result EURm 110.7 123.8 11.9%
Group result EURm 40.9 63.4 54.9%
Earnings per share EUR 0.12 0.18 54.9%
EBIT margin % 16.3 17.4 -
EBITDA margin % 30.4 30.6 -
Cash flow from
operating activities EURm 174.6 166.1 -4.9%
Free cash flow
after dividend EURm 1.4 266.3 -
Gearing % 66.5 72.1 -

* The calculation of the figures takes account of the profit/loss after tax
from discontinued operations (equivalent to the profit/loss 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).

Additional information and the interim report for quarter 1/2015 is
available at www.verbund.com/cc/en > Investor Relations > Latest financial
results.

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


06.05.2015 The DGAP 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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