VERBUND AG 
Integrated Annual Report 2023
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VERBUND Integrated Annual Report
This report combines our annual financial report and our sustainability report.
How should this report be used?
The information in this integrated report focuses on the main aspects of economic, environmental and social performance. Additional information about the content presented here can be found
-
in the Disclosures on Management Approach (DMA) at www.verbund.com >
Investor Relations > Financial reports, - in the GRI and TCFD Content Index at www.verbund.com > About VERBUND > Responsibility > Non-financial Information,
- in the NFI download at www.verbund.com > About VERBUND > Responsibility > Non-financial Information and
- on other web pages referred to separately.
GRI indicators, SDGs and TCFD references in the margin notes point to the corresponding content in the text.
The Integrated Annual Report is also available online at www.verbund.com >
Investor Relations > Financial reports.
The use of computing software may lead to rounding differences in the addition of rounded amounts and the calculation of percentages.
Design concept for charts and tables
Column/bar width
Wide columns or bars represent measurement parameters that can be physically counted.
Examples: MW, GWh, employees
Medium columns or bars represent aggregate amounts.
Examples: €k, €m, €bn
Narrow columns or bars represent amounts in euros per unit.
Examples: €/share, €/MWh
Lines or dotted lines represent shares, quotients or indices.
Examples: dividend yield in %, indexed share price, GDP growth in %
Colours
Current year
Neutral
Previous years
Budgeted figures
VERBUND
Highlighting
Five-year comparison
Economic performance
Unit | 2019 | 2020 | 2021 | 2022 | 2023 | |||||||
Revenue1 | €m | 3,895.0 | 3,449.8 | 4,776.6 | 10,346.1 | 10,449.5 | ||||||
EBITDA | €m | 1,183.5 | 1,292.8 | 1,579.0 | 3,160.7 | 4,490.5 | ||||||
Adjusted EBITDA2 | €m | 1,183.5 | 1,292.8 | 1,579.0 | 3,160.7 | 4,490.5 | ||||||
Operating result (EBIT) | €m | 865.9 | 921.9 | 1,266.8 | 2,626.2 | 3,501.9 | ||||||
Operating result before effects | ||||||||||||
from impairment tests | €m | 819.3 | 914.0 | 1,161.7 | 2,698.0 | 3,953.5 | ||||||
Group result | €m | 554.8 | 631.4 | 873.6 | 1,717.0 | 2,266.1 | ||||||
Adjusted Group result2 | €m | 549.0 | 610.4 | 798.6 | 1,754.9 | 2,615.8 | ||||||
Total assets1,3 | €m | 11,838.6 | 11,987.7 | 17,281.4 | 19,156.6 | 19,485.3 | ||||||
Equity1 | €m | 6,568.0 | 6,807.4 | 6,362.9 | 8,323.0 | 11,220.9 | ||||||
Net debt | €m | 2,256.1 | 1,881.2 | 3,510.8 | 3,898.3 | 1,758.7 | ||||||
Additions to property, plant and equipment | €m | 438.9 | 628.5 | 842.8 | 1,180.9 | 1,450.5 | ||||||
Cash flow from operating activities1 | €m | 1,204.3 | 1,182.1 | 98.2 | 2,019.9 | 5,083.0 | ||||||
Free cash flow before dividends1 | €m | 817.4 | 582.1 | - 1,010.1 | 452.1 | 3,651.6 | ||||||
Free cash flow after dividends | €m | 639.3 | 299.5 | - 1,329.5 | - 25.7 | 2,098.1 | ||||||
EBITDA margin1 | % | 30.4 | 37.5 | 33.1 | 30.5 | 43.0 | ||||||
EBIT margin1 | % | 22.2 | 26.7 | 26.5 | 25.4 | 33.5 | ||||||
Return on capital employed1 | % | 7.8 | 9.6 | 11.4 | 21.2 | 30.9 | ||||||
Return on equity (ROE)1 | % | 10.2 | 10.7 | 15.0 | 26.5 | 28.0 | ||||||
Equity ratio (adjusted)1,3 | % | 57.7 | 58.6 | 37.8 | 44.5 | 58.9 | ||||||
Gearing | % | 34.4 | 27.4 | 55.2 | 46.8 | 15.7 | ||||||
Net debt/EBITDA | X | 1.9 | 1.5 | 2.2 | 1.2 | 0.4 | ||||||
FFO/Net debt (net debt coverage) | % | 44.3 | 57.7 | 36.6 | 64.6 | 207.9 | ||||||
Gross debt coverage (FFO) | % | 41.0 | 52.6 | 31.9 | 56.2 | 124.1 | ||||||
Gross interest cover (FFO) | X | 11.9 | 19.4 | 24.9 | 32.3 | 30.3 | ||||||
Closing price | € | 44.74 | 69.85 | 98.90 | 78.65 | 84.05 | ||||||
Market capitalisation | €m | 15,543.4 | 24,267.0 | 34,359.4 | 27,324.2 | 29,200.3 | ||||||
Earnings per share | € | 1.60 | 1.82 | 2.51 | 4.94 | 6.52 | ||||||
Cash flow per share | € | 3.47 | 3.40 | 0.28 | 5.81 | 14.63 | ||||||
Carrying amount per share | € | 16.95 | 17.71 | 15.72 | 20.94 | 28.70 | ||||||
Price/earnings ratio (last trading day) | X | 28.02 | 38.43 | 39.33 | 15.91 | 12.89 | ||||||
Price/cash flow ratio | X | 12.91 | 20.53 | 350.03 | 13.53 | 5.74 | ||||||
Price/book value ratio | X | 2.64 | 3.95 | 6.29 | 3.76 | 2.93 | ||||||
(Proposed) dividend per share | € | 0.69 | 0.75 | 1.05 | 2.44 | 3.40 | ||||||
(Proposed) special dividend per share | € | - | - | - | 1.16 | 0.75 | ||||||
Dividend yield | % | 1.5 | 1.1 | 1.1 | 4.6 | 4.9 | ||||||
Payout ratio from Group result4 | % | 43.2 | 41.3 | 41.8 | 72.8 | 63.6 | ||||||
Entity value/EBITDA | X | 15.0 | 20.2 | 24.0 | 9.9 | 6.9 | ||||||
Average number of employees | Number | 2,772 | 2,870 | 3,184 | 3,516 | 3,804 | ||||||
Electricity sales volume | GWh | 62,179 | 62,741 | 58,896 | 63,431 | 63,672 | ||||||
Hydro coefficient | X | 1.01 | 1.01 | 0.95 | 0.86 | 0.98 | ||||||
New renewables coefficient | X | 1.01 | 1.00 | 0.91 | 0.96 | 1.06 |
1 calculation adjusted retrospectively in accordance with IAS 8 in financial year 2021 with effect from 1 January 2020 // 2 adjusted for extraordinary effects // 3 calculation adjusted retrospectively
in accordance with IAS 8 in financial year 2022 with effect from 1 January 2021 // 4 The payout ratio calculated on the basis of the adjusted Group result amounts to 55.1% for the 2023 reporting period (previous year: 71.3%).
Environmental performance
Unit | 2019 | 2020 | 2021 | 2022 | 2023 | |||||||
Hydropower generation1 | GWh | 30,660 | 31,525 | 29,340 | 26,754 | 30,509 | ||||||
Wind power generation | GWh | 929 | 924 | 839 | 954 | 1,397 | ||||||
Solar power generation | GWh | - | 1 | 2 | 70 | 362 | ||||||
Thermal power generation | GWh | 1,596 | 1,033 | 1,125 | 1,264 | 677 | ||||||
Share of generation from renewables | % | 95 | 97 | 96 | 96 | 98 | ||||||
Specific GHG emissions | ||||||||||||
(Scope 1/total electricity generated)2 | g CO2e/kWh | 32 | 20 | 14 | 17 | 8 | ||||||
Emissions avoided through | ||||||||||||
generation from renewable energy sources3 | kt CO2 | 24,071 | 24,726 | 22,055 | 20,006 | 23,577 |
Social performance
Unit | 2019 | 2020 | 2021 | 2022 | 2023 | |||||||
Number of employees under labour law4 | Number | 2,843 | 2,980 | 3,497 | 3,712 | 4,095 | ||||||
Training per employee5 | Hours | 40.0 | 20.0 | 26.4 | 34.4 | 34.4 | ||||||
Lost time injury frequency (LTIF)6 | Number | 6.4 | 5.6 | 6.8 | 8.9 | 6.5 | ||||||
Proportion of women | % | 17.8 | 18.3 | 19.3 | 20.5 | 22.0 | ||||||
Average duration of employment7 | Years | 17.6 | 16.1 | 15.0 | 13.6 | 12.1 | ||||||
Employee turnover rate8 | % | 2.0 | 1.5 | 2.4 | 3.1 | 3.0 |
- incl. purchase rights // 2 from electricity generation and transmission (excl. GCA) as a percentage of total electricity generated (incl. purchase rights excl. electricity generated for district heating). Preliminary figures before ETS audit // 3 calculated using emissions from thermal generation in Europe based on IEA figures // 4 as at 31 December, excl. members of the Executive Board and employees in partial retirement //
- incl. executives and long-term agency staff, excl. apprentices, apprentices in post-qualification retention period (Behaltefristen), employees seconded to third parties and those on long-term leave; excl. safety instruction // 6 ratio of workplace injuries from the first day of leave to million working hours; excl. injuries requiring only first aid measures and excl. fatal injuries. The basis for calculating the working hours is defined for the industry at 1,740 working hours per year; incl. external contractors from 2018. // 7 Personnel from acquired and newly consolidated companies are included in the duration of employment with the acquired/consolidated company and no longer in the duration of employment with the VERBUND Group. // 8 excl. retirements, incl. employees leaving during their probationary period
GRI 2-6 | |||||||
Basic information | Capital market calendar 2024 | ||||||
Share capital (€) | 347,415,686 | Event | Date | ||||
Shares (number) | 347,415,686 | Annual result 2023 | 14 March 2024 | ||||
Publication of Integrated Annual Report | 14 March 2024 | ||||||
Official quotation | Record date for Annual General Meeting | 20 April 2024 | |||||
Vienna | VER | Annual General Meeting | 30 April 2024 | ||||
Ex-dividend date | 7 | May 2024 | |||||
Information systems | Record date for dividends | 8 | May 2024 | ||||
Bloomberg | VER AV | Dividend payment date | 17 | May 2024 | |||
Reuters | VERB.VI | Interim report quarter 1/2024 | 8 | May 2024 | |||
Interim report quarters 1-2/2024 | 25 July 2024 | ||||||
ISIN | AT0000746409 | Interim report quarters 1-3/2024 | 7 November 2024 |
VERBUND
Integrated Annual Report 2023
Contents
Information about the integrated report | 5 |
Report of the Executive Board | 8 |
Report of the Supervisory Board | 12 |
The VERBUND Group and its strategy | 16 |
VERBUND's 2030 strategy | 18 |
Corporate objectives | 22 |
Investor relations | 24 |
Consolidated Corporate Governance Report | 28 |
Corporate governance - framework | 29 |
Commitment to the Austrian Code of Corporate Governance | 29 |
Executive Board | 31 |
Supervisory Board | 33 |
Annual General Meeting | 43 |
Diversity concept for appointments to the Executive Board and Supervisory Board | 43 |
Measures for the advancement of women | 45 |
Group management report | 47 |
General conditions | 48 |
Finance | 60 |
Segment report | 76 |
Hydro | 76 |
New renewables | 85 |
Sales | 90 |
Grid | 98 |
All other segments | 114 |
Opportunity and risk management | 119 |
Internal control and risk management system | 128 |
Shareholder structure and capital information | 130 |
Innovation, research and development | 132 |
Green hydrogen | 137 |
Outlook | 140 |
Events after the reporting date | 142 |
Report on non-financial information (NFI Report) | 143 |
Materiality | 145 |
EU taxonomy | 153 |
Taxonomy disclosures | 160 |
Stakeholder engagement and social responsibility | 182 |
Compliance | 185 |
Environmental performance | 190 |
Human resources | 201 |
Occupational health and safety | 215 |
Digital transformation, information security and data protection | 222 |
Human rights | 224 |
Supply chain | 225 |
Independent Assurance | 228 |
Consolidated financial statements | 232 |
Income statement | 234 |
Statement of comprehensive income | 235 |
Balance sheet | 236 |
Cash flow statement | 238 |
Statement of changes in equity | 240 |
Notes | 242 |
Independent Auditor's Report (Translation) | 375 |
VERBUND power plants, APG grid facilities and GCA pipeline facilities | 383 |
Glossary | 388 |
INTEGRATED ANNUAL REPORT Information about the integrated report | 5 |
Information about the integrated report
This Integrated Annual Report contains the Group management report published by VERBUND for financial year 2023, the Group report on non-financial information (NFI Report) and the Group's consolidated financial statements, including the notes to the consolidated financial statements. The principles of fair enterprise management followed by VERBUND are laid out in the Corporate Governance Report. This Integrated Annual Report thus not only presents the Group's financial and legal information but also deals with further aspects of sustainability and proper conduct of business operations.
The report covers the activities of all of the companies included in the Group's consolidated financial statements. It also includes sustainability reporting. Changes in reporting from the prior-year period are noted in the respective sections. Significant events occurring at unconsolidated companies are likewise presented to provide a complete picture of the Group.
The reporting period comprises the 2023 calendar year. The most recent preceding integrated annual report (for financial year 2022) was published on 16 March 2023. To ensure that our report is up to date, we also report in the Group management report on any major events occurring at VERBUND between 31 December 2023 and authorisation of the annual report for issue on 15 February 2024. Supplementary information on sustainability topics is available in our Disclosures on Management Approach (DMA) document and on the VERBUND website at www.verbund.com > About VERBUND > Responsibility > Non-financial Information.
Integrated report focuses on stakeholder interests
Investors, owners, customers, employees and other interest groups all require different types of information. The relevant information was collected in 2019 in an extensive stakeholder survey and is summarised in the VERBUND materiality matrix. The sustainability-related contributions to VERBUND's integrated annual report are updated annually on the basis of the materiality assessment conducted in accordance with the Global Reporting Initiative (GRI), the stakeholder survey, internal media analyses and material topics relating to stakeholder engagement.
Reporting pursuant to the Austrian Sustainability and Diversity Improvement Act (NaDiVeG)
and Article 8 of the EU Taxonomy Regulation
VERBUND's NFI Report prepared in accordance with Section 267a of the Austrian Commercial Code (Unternehmensgesetzbuch, UGB), which is included in this Integrated Annual Report, compiles the disclosures required by the Austrian Sustainability and Diversity Improvement Act (Nachhaltigkeits- und Diversitätsverbesserungsgesetz, NaDiVeG), which implements Directive 2014/95/EU (Non-financial Reporting (NFR) Directive) regarding the disclosure of non-financial and diversity information. These relate in particular to environmental matters, social and employee-related matters, respect for human rights and anti-corruption and bribery matters.
Since 2022, VERBUND is also required to disclose information on environmentally sustainable revenues, capital expenditures (CapEx) and operational expenditures (OpEx) pursuant to the EU Taxonomy Regulation. This reporting requirement is complied with through the EU taxonomy section of the Non-Financial Report (NFI Report).
The Group's auditor reviewed the NFI Report for completeness and recorded the outcome in an Independent Assurance that was presented to the Supervisory Board.
The Supervisory Board reviewed the NFI Report and reports on its findings to the General Meeting held in the year following the reporting period.
GRI 2-2
GRI 2-4
GRI 2-3
Contact for
corporate responsibility: sustainability@ verbund.com
GRI 3-1
The materiality assessment is presented in the Materiality section
GRI 2-5
GRI 2-14
6
Standards and guidelines
All data and calculations taken for this Integrated Annual Report are based on national and international standards as well as on guidelines for financial reporting (including the International Financial Reporting Standards, IFRSs) and sustainability reporting (the Global Reporting Initiative Standards, GRI, and the G4 Electric Utilities Sector Disclosures). This report was prepared in accordance with the 2016 GRI Standards, the 2018 GRI Standards (relating to GRI 303: Water and Effluents and GRI 403: Occupational Health and Safety), the 2020 GRI Standards (relating to GRI 306: Waste) and the 2021 Universal Standards. The current GRI table of contents including the TCFD Index is published on the VERBUND website at www.verbund.com > About VERBUND > Responsibility > Non-financial Information.
Information about the methods, standards and factors used and the assumptions made in the calculation of key performance indicators (KPIs) is available from the Group's Investor Relations and Corporate Responsibility departments at any time on request.
The margins of this report include references to GRI disclosures as well as to VERBUND's contributions to the respective Sustainable Development Goals (SDGs) set by the UN. The "TCFD" references in the margins point to information on how VERBUND is implementing the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) to manage its climate-related financial risk exposure.
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Disclaimer
Verbund AG published this content on 11 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2024 07:53:08 UTC.
