Ad hoc announcement VERBUND AG / Keyword(s): Change in Forecast/Forecast VERBUND AG: Verbund raises earnings forecast and dividend for 2014 Ad hoc announcement transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------ VERBUND AG's management announced today that the earnings forecast for financial year 2014 is being raised. VERBUND expects EBITDA of around EUR800m (previous forecast: EUR770m) and a Group result of around EUR125m (previous forecast: EUR85m) in financial year 2014. The planned dividend continues to be based on a payout ratio of approximately 50% of the adjusted Group result which in 2014 will be around EUR210m (previous forecast: EUR190m). This adjustment of the earnings forecast is mainly attributable to the following: - Better water supply and increased use of storage power plants in quarter 4/2014 At 1.16, water supply in quarter 4/2014 was significantly above the long-term average. The hydro coefficient for financial year 2014 was therefore 1.02. In the old forecast, assumptions for quarter 4/2014 were based on an average water supply. In addition, due to market conditions, more use was made of storage power plants in quarter 4/2014 than had been planned. The positive effect on EBITDA was around EUR45m and around EUR25m on the Group result. - Effects from impairment tests and from the thermal segment As part of the preparation of the Group's annual financial statements, in addition to the changed energy parameters, also the WACC for impairment tests was updated and adjusted to reflect the lower interest rate level. This resulted overall in a reversal of impairment losses in the power plant segment. In addition, effects especially in the thermal segment had a negative influence. EBITDA decreased overall by around EUR25m and the Group result improved by around EUR10m. - Cost savings higher than planned The continued, systematic implementation of the cost savings program has led to positive effects on the result which were higher than planned, with Group result improving on the previous forecast by around EUR5m. The cost savings of EUR130m that were originally planned up to 2015 will therefore definitely be exceeded. Further details on the 2014 annual result will be announced as planned as part of the publication of results on 11 March 2015. 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 22.01.2015 The DGAP 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: Wien (Amtlicher Handel / Official Market) End of Announcement DGAP News-Service ---------------------------------------------------------------------------