VERBUND updates investment plan and provides guidance on its financial outlook

9/8/2011London/Vienna

VERBUND announced an update of its investment plan and provided guidance on its financial outlook for 2011 and 2012 at the Analysts’ Day that took place today in London.

“Our vision is to become one of the most important hydropower generators in Europe supplemented by environmentally friendly gas and wind technology. The attractive investment projects in our domestic market Austria/Germany and the joint ventures under favourable conditions in Italy and Turkey as well as in other countries are laying the foundation for achieving this goal,” said Wolfgang Anzengruber, CEO of VERBUND.

Update of the investment plan for 2012–2016
VERBUND announced its intention to invest €2.6bn in domestic and international power plant and network expansion projects between 2012 and 2016 – 62% of which in its domestic market Austria/Germany. Maintaining a solid “A”-level investment grade rating will continue to be a requirement for VERBUND’s financial profile. Moreover, the net debt to EBITDA should not exceed 4.0x and the gearing should be below 100%. At the same time, the key profitability ratio ROCE should stay above 8% and the ratio of cash flow (FFO) to net debt should stay above 20%.

VERBUND financial outlook 2011 and 2012
VERBUND expects an operating result of around €780m and a Group result of approximately €380m for 2011. Planning for 2011 was based on an assumption of a hydro coefficient of 0.92 and an exchange rate of 2.13 Turkish liras per euro (TRY/EUR).
For 2012, VERBUND is planning on an operating result of around €900m to €1bn and a Group result of approximately €450m to €500m. The outlook for 2012 is based on an average water supply, an average market price for electricity of €57/MWh for base load and €71/MWh for peak load and an exchange rate of 2.17 Turkish liras per euro (TRY/EUR).
Management intends to distribute 45% to 50% of the Group result as dividends.

Contact

Andreas Wollein Andreas Wollein

Head of Group Finance, M&A and Investor Relations

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