Ad hoc announcement VERBUND AG / Keyword(s): Final Results/Final Results VERBUND AG: result for the 2011 financial year: satisfactory business performance 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 utility, presents a satisfactory business performance for financial year 2011 in light of the difficult conditions in the energy market environment and the overall economy. A dividend of EUR0.55 per share will be proposed to the Annual General Meeting on 12 April 2012. Key figures Unit 2011 2010 Change Revenue EURm 3,865.4 3,307.9 16.9% Operating result EURm 1,001.6 828.5 20.9% Operating result before effects from impairment tests EURm 799.4 829.3 -3.6% Return on sales (ROS; EBIT margin) % 25.9 25.0 EBITDA EURm 1,041.1 1,059.2 -1.7% EBITDA margin % 26.9 32.0 Group result EURm 352.6 400.8 -12.0% Cash flow from operating activities EURm 829.9 778.2 6.6% Gearing % 81.9 96.8 (Proposed) dividend per share EUR 0.55 0.55 Payout ratio % 54.2 47.7 Revenue and operating result up, Group result down Revenue rose 16.9% to EUR3,865.4m in 2011. The operating result rose 20.9% to EUR1,001.6m. The hydro coefficient, which is the measured value for the generation from run-of-river and pondage power plants, was 0.89 in 2011, or 11% below the long-term average and 10 percentage points below the prior-year figure. At an average of EUR49.9/MWh, electricity prices applicable for the 2011 financial year (forward contracts 'Year Base 2011' traded in 2010) were up 1.4% over the previous year's level. The changed market environment for the energy sector had led to impairment tests of VERBUND power plants in the third quarter of 2011, which resulted in an increase in the operating result after impairment losses were reversed in the amount of EUR202.2m. Adjusted for the net positive effects from the impairment tests, the operating result fell only slightly by 3.6% to EUR799.4m, despite the extraordinarily weak water supply. The Group result declined by 12.0% to EUR352.6m. The primary cause was the negative impact of foreign interests accounted for using the equity method, particularly the non-cash measurement of foreign exchange liabilities on the part of the Turkish joint venture, and the gas supply contract for the combined cycle gas turbine power plant in Pont-sur-Sambre/France, which was accounted for at fair value through profit or loss for the first time. Outlook for 2012 Regarding the outlook, given the uncertain macroeconomic and financial environment and the resulting difficult conditions in the energy industry, it is impossible at present to give a serious forecast for earnings in 2012. Our dividend policy will aim for a payout ratio of approximately 50% of the Group result. Please find further information and the annual report 2011 at www.verbund.com 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.com 29.02.2012 DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: VERBUND AG Am Hof 6A 1010 Wien Austria Phone: 0043-1-53113-52616 Fax: 0043-1-53113-52694 E-mail: investor@verbund.com Internet: www.verbund.com ISIN: AT0000746409 WKN: 877738 Indices: ATX Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart; Wien (Amtlicher Handel / Official Market) End of Announcement DGAP News-Service ---------------------------------------------------------------------------