DGAP-Ad-hoc: VERBUND AG / Key word(s): Legal Matter/Change in Forecast VERBUND AG: Settlement of all outstanding matters associated with the Mellach power plants site improves earnings forecast 20-Dec-2016 / 16:54 CET/CEST Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- VERBUND AG's management is today announcing the imminent settlement of all outstanding matters associated with the agreement with Energie Steiermark to supply district heating from the Mellach power plants site. VERBUND will in this regard erect a boiler plant at the Mellach site which is intended to satisfy the district heating supply agreement. As a result, VERBUND is giving itself the opportunity to close the Mellach hard coal power plant even earlier than in 2020, in line with its strategic focus on CO2-free electricity generation. VERBUND is continuing to evaluate all the options for the Mellach combined cycle gas turbine power plant which is also located at the Mellach site. The parties have agreed not to disclose any further details of the settlement. Based on the effects of this settlement and accounting measurement effects, VERBUND AG's management is increasing its earnings forecast for 2016. Assuming average water and wind supplies to the end of the year, VERBUND will achieve EBITDA of approximately EUR1,010m (previous forecast: EUR980m) and a Group result of approximately EUR410m (previous forecast: EUR385m). The adjusted 2016 Group result will remain unchanged at approximately EUR315m as the settlement and the accounting measurement effects are defined as non-recurring effects. For additional information please contact Mag. Andreas Wollein Head of Group Finance and Investor Relations Tel.: +43(0)50313-52604 Fax: +43(0)50313-52694 investor-relations@verbund.com --------------------------------------------------------------------------- 20-Dec-2016 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at 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: Foreign Exchange(s) Wien (Amtlicher Handel / Official Market) End of Announcement DGAP News Service --------------------------------------------------------------------------- 532013 20-Dec-2016 CET/CEST