Ad hoc announcement VERBUND AG / Keyword(s): Quarter Results/Quarter Results VERBUND AG: Q1/2012: clearly positive business development despite the challenging market and industry 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 utility, presents clearly positive business development for quarter 1/2012, despite the challenging market and industry environment. Key figures Unit Q1/2012 Q1/2011 Change Revenue EURm 837.8 706.5 18.6% Operating result EURm 263.6 215.8 22.2% Return on sales (ROS; EBIT margin) % 31.5 30.5 - EBITDA EURm 328.7 273.6 20.1% EBITDA margin % 39.2 38.7 - Group result EURm 119.5 108.5 10.2% Earnings per share EUR 0.34 0.31 10.2% Cash flow from operating activities EURm 246.1 357.0 -31.0% Gearing % 81.5 105.1 - Increased operating result and Group result The operating result rose by 22.2% to EUR263.6m. The primary reason for this was significantly higher electricity generation due to the very good water supply - generation from hydropower increased by 1,103 GWh. At 1.19, the hydro coefficient of the run-of-river power plants was 19.0% above the long-term average and 20 percentage points above the previous year's level. Generation from annual storage power plants also increased significantly (+29.7%). This can be attributed in particular to the high storage levels at the beginning of the year. Generation from thermal power plants increased by 239 GWh. The reasons for this were the purchase of all electricity generated by the Pont-sur-Sambre combined cycle gas turbine power plant (CCGT) in France since 1 March 2011 (+127 GWh) and generation from the newly constructed Mellach CCGT under trial operation in Styria (+395 GWh), while generation from other thermal power plants in Austria decreased (-282 GWh). At 8,328 GWh, VERBUND's own generation in quarter 1/2012 was 1,358 GWh higher than in quarter 1/2011. In addition, VERBUND profited from an overall higher price level. At an average of EUR56.0/MWh, electricity prices applicable for the 2012 financial year (forward contracts 'Year Base 2012' traded in 2011) were up 12.3% over the previous year's level. This increase was due in particular to the nuclear disaster in Fukushima and Germany's subsequent phase-out of nuclear energy. VERBUND already included around 60% of its own generation in 2011 over the forward market based on its hedging strategy. In contrast, spot market prices fell by 13.0% to EUR45.1/MWh in quarter 1/2012. Spot price development was driven above all by low demand due to market conditions and the low prices for emission rights. The Group result increased by 10.2% year-on-year to EUR119.5m. The lower increase compared to net operating income can be attributed to the non-cash expenses for the French Toul CCGT as a result of the unfavourable development of profitability for gas power plants in Europe. Outlook on the full year 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 earnings forecast for 2012. VERBUND plans to provide an outlook on the full year with the publication of its half-year results. The dividend policy will aim for a payout ratio of approximately 50% of the Group result. Please find further information and the interim report quarter 1/2012 on 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 03.05.2012 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 ---------------------------------------------------------------------------