Ad hoc announcement Quarter Results Österreichische Elektrizitätswirtschafts AG: quarter 1-3/2009: Result slightly down due to low spot market prices for electricity and negative one-off effects Ad hoc announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------ For quarters 1-3/2009, Verbund, Austria's leading electricity company, presents a satisfactory result, which, nevertheless, is below the record result of the corresponding period of the previous year. Compared to the record year 2008, sales revenue dropped by 7.2% to EUR 2,446.7 million, the operating result sank by 9.3% to EUR 802.9 million and the group result shrunk by 8.4% to EUR 551.8 million. The control-specific business key ratios showed the following development: The EBIT margin sank from 33.6% to 32.8%, gearing rose from 76.5% to 127.3% and the operating cash flow fell from EUR 985.1 million to EUR 707.3 million. The Economic Value Added (EVA), the control-specific key ratio for the Verbund Group for value creation, dropped by EUR 147.3 million to EUR 317.0 million. Ratios Unit Q1-3/2008 Q1-3/2009 Change Sales revenue million EUR 2,637.2 2,446.7 -7.2% Operating result million EUR 885.3 802.9 -9.3% Group result million EUR 602.5 551.8 -8.4% Economic value added million EUR 464.3 317.0 -31.7% Gearing % 76.5 127.3 66.4% Operating cash-flow million EUR 985.1 707.3 -28.2% Low spot market prices and negative one-off effects burden operating result As in quarters 1 and 2, the operating performance was essentially characterized by the low European spot market prices for electricity, an above-average water supply and negative one-off effects. Compared to the corresponding period of the previous year, the spot market prices for electricity fell sharply by 40% for baseload and by 41% for peak load electricity. This drop reflects the lower CO2 spot market prices, the significant decline in prices for primary energy sources and the lower demand for electricity. Compared to the levels recorded in the previous year, the prices for quarterly and monthly electricity forwards also showed a noticeable decline. Verbund trades approx. 40% of its own generation on the basis of spot market prices as well as quarterly and monthly forwards. The remaining 60% was already sold one year in advance at significantly higher prices in the context of the hedging strategy. The above-average water supply from Austria's rivers and streams had a positive impact on the result for the quarter. The hydro coefficient for quarters 1-3/2009 was at 1.07, which was 7% above the long-term average and 5% above the value recorded in the previous year. As a result, more electricity was produced in the run-of-river power plants. Generation at the storage power plants was also increased, specifically due to the higher reservoir levels at the beginning of the year compared to 2008, and the excellent inflow conditions resulting from the snowmelt. Hydropower generation within the Verbund Group rose by a total of 6.3% or 1,272 GWh. For the most part, however, these additional volumes could only be sold on the basis of the low spot market price levels mentioned above, and this dampened the positive effect of the additional volumes. Compared to the previous year, thermal production showed a decline by 32.6% or 734 GWh due to the low spot market price levels. Wind and solar energy generation amounted to 77 GWh in the quarters 1-3/2009. In total, energy generation increased by 616 GWh to 23,064 GWh. As in the result for the half-year, the operating result was again burdened by negative one off effects in the amount of around EUR 74 million while about EUR 23 million of positive one-off effects were recorded in the financial result. Strong position consolidated Although no sustained recovery of the economy is yet in sight, Verbund is adhering to its anti-cyclical investment activities and aims to profit to an even greater extent from a future economic upturn. In this respect, Verbund is focusing on the expansion of renewable energy sources, in particular hydropower, and the modernization of the domestic electricity grid. The investments in the foreign core markets Turkey, France and Italy will also be continued - even if there may be some deviations from the schedule. Against this background, Verbund has further consolidated its strong position in the European energy market. The takeover of 13 hydropower plants on the Bavarian Inn from German E.ON was completed on August 31, 2009. The Inn power plants with a total capacity of 312 MW are operated by VERBUND-Innkraftwerke GmbH based in Bavaria. From September 2009 onward, the annual generation of Verbund will thus increase by 1.8 TWh. Verbund has also expanded its activities in the French electricity market. In the context of a capital increase in the amount of EUR 75 million in quarter 3/2009 and the acquisition of the shares of POWEO founder Charles Beigbeder and shares of POWEO co-founder Frédéric Granotier, Verbund has raised its stake in POWEO S.A. to 46.0%. This makes Verbund the largest single shareholder in the company. Outlook In light of the sustained difficult economic conditions and the extremely weak spot market prices, we expect our figures for 2009 as a whole to be down slightly on the previous year. We are maintaining our dividend policy and are aiming to achieve a payout ratio of at least 45%. Detailed information on the interim results of quarters 1-3/2009 can be found at http://www.verbund.at/. Effective immediately, the interim report as well as a user-friendly online version are available there. 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 27.10.2009 --------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------