Ad hoc announcement Final Results �sterreichische Elektrizit�tswirtschafts AG: 2008 again very good result in an overall difficult economic 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, once again generated a very good result in fiscal year 2008. In spite of general conditions that have become more difficult, Verbund was able to increase sales by 23.2% to EUR 3,744.7 million, improve the operating result by 24.3% to EUR 1,138.6 million, and increase the group result by 18.6% to EUR 686.6 million. On the basis of the very positive result, the Managing Board will propose a dividend increase of 16.7 % to EUR 1.05/share to the General Meeting. The control-specific business key ratios developed as follows: The EBIT margin increased from 30.2% to 30.4%; gearing worsened from 70.0% to 80.2%; the operating cash flow was increased from EUR 807.6 million to EUR 934.2 million. The Economic Value Added (EVA), the control-specific key ratio for the Verbund Group for value creation, increased in fiscal year 2008 in spite of an increase in the capital costs by EUR 1.3 million to EUR 440.8 million. Ratios Units 2007 2008 Change Sales revenue EUR million 3,038.3 3,744.7 23.2% Operating result EUR million 916.1 1,138.6 24.3% Group result EUR million 579.2 686.6 18.6% Economic value added EUR million 439.5 440.8 0.3% Gearing % 70.0 80.2 -14.6% Operating cash flow EUR million 807.6 934.2 15.7% (Proposed) Dividends per share EUR 0.90 1.05 16.7% Higher sales prices achieved in the European electricity markets It was primarily the distinct recovery of the spot market prices that had a very positive effect on the sales prices. There were no effects worth mentioning from the longer term futures market, because Verbund sold its production in advance to a great extent due to its marketing strategy, and the prices for the front year in trading years 2006 and 2007 essentially experienced sideways movement. Therefore, Verbund was able to considerably increase its sales prices in the European electricity markets. The average contract price that was achieved was 63.34 EUR/MWh (2007: 53.15). As of December 31, 2008, 68% of its own generation for 2009 had already been sold for an average of 70.28 EUR/MWh. Higher generation from hydropower/One-time effect lowers thermal generation The water supply of the local rivers, which is measured with a hydro coefficient, was 1.01 in 2008 which puts it 1% above the average of the past 30 years and 4% above last year's value. The generation of the run-of-river power plants therefore increased considerably compared to last year. The generation from storage power plants was maintained at last year's level. On the whole, electricity from hydropower increased by 987 GWh to 25,308 GWh. There was a drop in the generation from thermal power plants of 634 GWh to 3,352 GWh, which was essentially caused by the one-time renewal work that was carried out at the D�rnrohr power plant from April to June. At 28,660 GWh, total generation of the group was 1.2% higher than last year's level. Negative one-time effects in the operating result and in the financial result The one-time effects in the operating result amounting to around EUR 30.0 million are mainly in regard to changes in the social capital as well as extraordinary maintenance. The one-time effects in the financial result amounting to around EUR 110.0 million are primarily attributable to the devaluation requirement of Energie Klagenfurt GmbH determined during the impairment test and the assessment related devaluations of the assessment portfolio due to the financial market crisis. Constant result is the aim for 2009 In 2009, Verbund is aiming for the results to remain the same even with the continued difficult general conditions and also assuming an average water supply. Furthermore, Verbund wants to keep its current dividend policy. The full report and further information can be seen 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 25.02.2009 --------------------------------------------------------------------------- Language: English Issuer: �sterreichische Elektrizit�tswirtschafts AG Am Hof 6A 1010 Wien �sterreich 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, Hamburg, D�sseldorf, M�nchen, Stuttgart; Foreign Exchange(s) Wien End of News DGAP News-Service ---------------------------------------------------------------------------