VERBUND AG  / Key word(s): Final Results

11.03.2015 07:59

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 was again faced with extremely challenging market and sector conditions in 2014. The market climate for electricity producers was shaped by the weak economic trend and mild weather conditions as well as declining prices for primary energy and wholesale electricity. Oversubsidisation of new renewable energy, a CO2 market that continued to be non-functional and a lack of profitability of gas power plants continued to prevail in the European electricity sector in 2014. These factors directly impacted the business performance of VERBUND.

Numerous measures to counteract the above developments continued to be implemented in financial year 2014. An important step was the restructuring of electricity generated from fossil fuels. In addition, VERBUND's investment plan has been streamlined and adapted to the changing conditions in the European electricity market.
VERBUND's internal programme to reduce costs and increase efficiency, which has been underway for two years, will save the Group a total of more than EUR130m by the end of 2015.

The income trend in financial year 2014 was impacted by non-recurring effects, as was also the case in 2013. The changed energy market parameters and an adjustment of the WACC to the lower interest rate levels led to impairment losses and reversals of impairment losses. Additional non-recurring effects resulted from the sale of the French Pont-sur-Sambre and Toul CCGTs and from the restructuring in the thermal area. Earnings in 2013 had received a very significant boost from the sale of the Turkish activities and the concurrent purchase of hydropower plants in Germany. The operating business was particularly impacted in 2014 by the further decline in electricity sales prices and a lower water supply compared with the previous year. EBITDA therefore decreased by a total of EUR492.6m to EUR808.8m, and the Group result declined by EUR453.5m to EUR126.1m. EBITDA after adjustment for non-recurring effects decreased by EUR270.0m to EUR889.6m, and the adjusted Group result fell by EUR168.2 to EUR216.0m.
Dividend for 2014
A dividend of EUR0.29 per share for financial year 2014 will be proposed to the Annual General Meeting on 22 April 2015.

Outlook for 2015
Based on the average own generation from hydropower, EBITDA is expected to amount to approximately EUR770m and the Group result to approximately EUR180m in financial year 2015. For 2015, VERBUND is planning a payout ratio of approximately 50% on the basis of the Group result after adjustment for non-recurring effects.

Key figures Unit 2013 2014 Change Revenue EURm 3,266.5 2,834.8 -13.2% EBITDA EURm 1,301.4 808.8 -37.9% Operating result EURm 148.3 384.4 159.3% Group result EURm 579.6 126.1 -78.2% Earnings per share EUR 1.67 0.36 -78.2% EBIT margin % 4.5 13.6 - EBITDA margin % 39.8 28.5 - Cash flow from operating activities EURm 841.4 717.6 -14.7% Free cash flow after
dividend EURm 546.7 -133.6 - Net debt/EBITDA X 2.8 5.0 - (Proposed) dividend per share EUR 1.00 0.29 -71.0% - thereof special
dividend EUR 0.45 - -
  
The profit/loss after tax from discontinued operations was included in the calculation of the key figures.
The comparative figures have been adjusted retrospectively due to the initial application of IFRS 11.

Further information and the 2014 Annual Report can be found at www.verbund.com/cc/en > Investor Relations > Latest financial results.

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


11.03.2015 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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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