Ad hoc announcement Half Year Results Österreichische Elektrizitätswirtschafts AG: HY results 2009: Good business development burdened by negative one-off effects - stable outlook for 2009 confirmed 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, reports good development of operating earnings in quarters 1 and 2/2009, which, however, is marked by negative one-off effects. Compared to the record results 2008, sales increased by 1.1% to EUR 1,667.8 million, the operating result dropped by 5.4% to EUR 533.7 million, and the group result shrunk by 16.1% to EUR 359.9 million. The control-specific business key ratios developed as follows: The EBIT margin dropped from 34.2 % to 32.0 %; gearing increased from 71.5 % to 98.9 %; the operating cash flow fell from EUR 950.3 million to EUR 540.1 million. The Economic Value Added (EVA), the control-specific key ratio for Verbund for value creation, dropped by EUR 92.2 million to EUR 242.9 million. Key Ratios Unit Q1-2/2008 Q1-2/2009 Change Sales million EUR 1,649.2 1,667.8 1.1 % Operating result million EUR 564.2 533.7 -5.4 % Group result million EUR 429.0 359.9 -16.1 % Economic Value Added million EUR 335.1 242.9 -27.5 % Gearing % 71.5 98.9 -38.3 % Operating Cashflow million EUR 950.3 540.1 -43.2 % Low spot market prices and one-off effects burden results The earnings development was essentially influenced by low European spot market prices for electricity, an above average water supply, and negative one-off effects. The spot market price level for electricity dropped sharply in quarters 1-2/2009 compared to the previous year. More specifically, it was down 35% for base load and 36% for peak electricity. This decline reflects the fallen level of the CO2 spot market prices, the considerably lower prices for primary energy sources and the lower demand for electricity. Also the prices for quarterly and monthly forwards for electricity have dropped considerably compared to the previous year. Verbund sells approximately 40% of its own generation on the basis of spot market prices as well as quarterly and monthly forwards. The remaining 60% had already been sold one year in advance for electricity prices that were still considerably higher as part of the tried and proven hedging strategy. The above-average water supply in Austria's streams had a positive effect on the quarterly results. At 1.07, the hydro coefficient in quarters 1-2/2009 was 7% higher than the long term average and 3% above last year's value. Hence, it was possible to generate more electricity in the run-of-river power plants. However, it was also possible to increase generation from storage power plants as a consequence of the higher storage levels at the beginning of the year compared to 2008 and outstanding tributary conditions from the melting snow. The Verbund Group's hydropower generation increased by a total of 4.0% or 519 GWh. However, it was only possible to sell these additional quantities on the basis of the low spot market price level described above, which put a damper on the positive effect of the additional quantities. Thermal generation declined by 16.4% or 230 GWh compared to the previous year because of the low spot market price level. Generation from the wind and sun amounted to 59 GWh in quarters 1-2/2009. On the whole, the own generation increased by 347 GWh to 14,765 GWh. The development of Verbund's earnings was influenced by special financial effects, as was the case in the first quarter of 2009. In total, they had negative effects on the operating result to the extent of around EUR 65 million and around EUR 10 million on the financial result. Strong position solidified In spite of the difficult market environment, Verbund was able to further solidify its strong position in the European electricity market. In June 2009, Verbund signed a purchase agreement with Germany's E.ON for 13 run-of-river power plants on the Inn River in Bavaria with an installed capacity of 312 MW and annual generation of 1.874 GWh. Verbund also strengthened its position as the leading electricity company in Austria. The Group will supply a total of 10 TWh of hydropower electricity to the provincial utilities EVN and Wien Energie between 2010 and 2013. Verbund's international involvement also developed positively. In France, Verbund acquired 13.4% of the joint venture Poweo from shareholder Charles Beigbeder and his Holding Gravitation. This increased Verbund's holdings to a total of around 43.3% making it the largest single shareholder. Outlook In spite of continued, difficult, economic conditions, and in spite of falling half-year results, Verbund is still aiming for approximately the same results over the entire year of 2009 as the previous year on the basis of stable operating business. You can find detailed information on the interim results of quarters 1-2/2009 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 28.07.2009 --------------------------------------------------------------------------- Language: English Issuer: 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 ---------------------------------------------------------------------------