Ad hoc announcement Final Results/Final Results Österreichische Elektrizitätswirtschafts AG: 2009 Good result in difficult environment Ad hoc announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------ Verbund, Austria's leading electricity company, is able to present good results for fiscal 2009, albeit at a lower level than the record figures generated in 2008. Compared to 2008, sales declined by 7.0 % to EUR 3,483.1 million, the operating result fell by 8.5 % to EUR 1,042.3 million and group result was down 6.2 % to EUR 644.4 million. The control-specific ratios displayed the following development: the EBIT margin sank from 30.4 % to 29.9 %, gearing rose from 80.2 % to 138.3 % and the operating cash flow increased from EUR 934.2 million to EUR 968.0 million. Despite these lower results, Verbund would like to reinforce the confidence of its shareholders and, having generated the second best result in the company's history, will therefore propose to the Annual General Meeting an increase in the dividend from EUR 1.05 per share to EUR 1.25 per share - EUR 1.00 per share in regular dividends and EUR 0.25 per share in special dividends. Ratios Unit 2008 2009 Change Sales EUR m 3,744.7 3,483.1 -7.0% Operating result EUR m 1,138.6 1,042.3 -8.5% Group result EUR m 686.6 644.4 -6.2% Gearing % 80.2 138.3 72.4% Operating cash flow EUR m 934.2 968.0 3.6% (Proposed)dividend per share EUR 1.05 1.25 19.0% Earnings development in the past fiscal year was largely influenced by three factors: low European wholesale prices for electricity, an above-average water supply and one-off accounting measures. Average achieved contract price below level of previous year In the year under review, wholesale prices for electricity, in particular short-term forward and spot market prices, declined significantly compared with the previous year, remaining at an extremely low level throughout. This came as a result of a significant reduction in prices for primary energy sources, lower demand for electricity and the fall in the price of CO2 certificates. However, a good proportion of the electricity generated by Verbund was sold one year in advance at considerably higher prices in accordance with the company's hedging strategy, thereby cushioning the negative impact of the weaker short-term prices. Water supply above the long-term average The above-average water supply from the rivers that are used to produce electricity had a positive impact on the result. The hydro coefficient for 2009 lay at 1.06 and was therefore 6% higher than the long-term average and 5% higher than the figure recorded in the previous year. The acquisition of the Bavarian power plants on the Inn river with effect from September 2009 also had a positive impact on generation of the run-of-river plants. As a result, more electricity was produced in the run-of-river plants. Generation in the storage power plants on the other hand, was increased due to the higher reservoir levels at the beginning of the year compared to 2008 and the favourable inflow conditions as a result of the thaw. Hydropower generation within the Verbund Group therefore rose by a total of 7.1% or 1,790 GWh. Thermal generation declined by 19.0% or 638 GWh compared to the previous year on account of the lower spot market price level. In 2009, generation from wind and sun came to 106 GWh. In total, own generation increased by 1,258 GWh to 29,918 GWh. Result burdened by one-off accounting measures As in 2008, the earnings development of the Verbund Group was marked by one-off accounting measures: these had an adverse effect on the operating result in the total amount of approx. EUR 60 million and the financial result was burdened in the amount of approx. EUR 10 million. Outlook In fiscal 2009, Verbund reacted to the economic crisis and significantly reduced its capex program for 2010 to 2015 to EUR 2.7 billion. In spite of this, Verbund will continue to invest in the expansion of domestic hydropower, the high-voltage grids and the existing international activities in Turkey, Italy and France. The company aims to have all power plants operational when the economy in Europe once again displays sustainable growth so that it can benefit from the increasing wholesale prices. On the basis of the sustained difficult conditions and due to the achieved significantly lower forward prices for electricity, Verbund expects a considerably lower operating result and group result as well as lower dividends in fiscal 2010 despite the restructuring measures and the reduced capex program. The full report and further information for the financial year 2009 can be found on http://www.verbund.at. 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.at (c)DGAP 02.03.2010 --------------------------------------------------------------------------- Language: English Company: Österreichische Elektrizitätswirtschafts AG Am Hof 6A 1010 Wien Österreich Phone: 0043-1-53113-52616 Fax: 0043-1-53113-52694 E-mail: andreas.wollein@verbund.at Internet: www.verbund.at ISIN: AT0000746409 WKN: 877738 Indices: ATX Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, Düsseldorf, München, Hamburg, Stuttgart; Foreign Exchange(s) Wien End of News DGAP News-Service ---------------------------------------------------------------------------