VERBUND AG / Key word(s): Forecast/Change in Forecast
21.10.2014 13:46

Dissemination of an Ad hoc announcement, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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VERBUND AG's management is today announcing that it is raising its earnings forecast for financial year 2014. Based on the updated planning, VERBUND is set to generate EBITDA of around EUR770 million (previous forecast: EUR690 million) and a Group result of around EUR85 million (previous forecast: EUR70 million) in 2014. The planned dividend continues to be based on a payout ratio of approximately 50% of the adjusted Group result, which will be around EUR190 million for 2014 (previous forecast: EUR150 million).
These changes to the earnings forecast are mainly due to the following:
- Better water supply 
At 1.10, water supply was above the long-term average in the third quarter of 2014. Over the remainder of the year, water supply is expected to be average. The new earnings forecast is therefore based on a hydro coefficient of 0.99 for 2014 as a whole. EBITDA is positively impacted to the tune of around EUR20 million and the Group result to the tune of around EUR10 million.

- Positive effects in connection with the sale of the French combined   cycle gas turbine power plants
On 6 October 2014, VERBUND and KKR agreed on the sale of the French Pont-Sur-Sambre and Toul CCGTs. The contracts were signed on 13 October 2014. This sale, which took place based on the power plants' carrying amounts, resulted in the recognition of a positive, one-off tax effect. Group result is positively impacted by the sale of the French CCGTs to the tune of around EUR105 million.

- Impairment loss on the wind farms in Romania
Regulatory intervention in the market for green electricity certificates by the Romanian government and a massive surplus of green electricity certificates are pushing down revenue at VERBUND's Romanian wind farms. Due to trigger factors, an impairment test was performed, revealing the need to recognise a write-down. This depresses the Group result by around EUR144 million.

- Positive effects from the electricity business
Higher than planned margins from the electricity business have a positive effect on the earnings development. EBITDA is positively impacted to the tune of around EUR30 million and the Group result to the tune of around EUR20 million.

- Higher-than-planned cost savings
In addition, the positive effects on earnings achieved through the systematic programme to reduce costs were higher than planned. This lifted EBITDA by around EUR25million and the Group result by around EUR15 million.
The effects in connection with the sale of the French combined cycle gas turbine power plants and with the impairment loss on the wind farms in Romania are already fully included in the result for quarters 1-3/2014, which will be published on 29 October 2014.

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-relations@verbund.com


21.10.2014 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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  

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