Iren S.p.a. · MIL:IRE
Iren — Q1 2014 Earnings Presentation
14 slides from Iren's earnings presentation, May 15, 2014
Slide 1: 2014 – 1Q Results
15th of May 2014 2014 – 1Q Results
Slide 2: Market Scenario
Market Scenario. 1Q ‘13 1Q ‘14 Δ% Brent USD / bbl 112.6 108.2 -3.9% USD / € 1.30 1.37 +3.7% Brent € / bbl 85.2 79.0 -7.3% Gas Demand (bcm) 26.2 21.4 -18.3% PSV €/000 scm 288 269 -6.5% Energy demand (Twh) 81.2 78.1 -3.7% PUN (€ /MWh) 63.8 52.5 -17.8% CO2 (€ /Ton.) 4.7 5.8 +23.1% Green Cert. Hydro (€
Slide 3: Opening remarks
Opening remarks 1 RESULTS The results achieved in the first quarter 2014 are in line with our expectations. The predictable items, already communicated to The effects of unpredictable items, in the market, such as the negative impact of a particular the drop in gas and DH volumes sold, number of cha
Slide 4: 1Q 2014 – Performances impacted by the negative scenario and exceptional climate conditions
1Q 2014 – Performances impacted by the negative scenario and exceptional climate conditions EURm 1Q ’13(1) 1Q ’14(1) ∆ ∆% REVENUES 1,106 903 -202.5 -18.3% EBITDA 246 203 -42.4 -17.3% EBITDA (margin) 22,2% 22.5% EBIT 176 129 -47.2 -26.8% NET PROFIT 83 51 -31.4 -38.0% GROSS CAPEX 37 43 +6.5 +17.3% NFP
Slide 5: EBITDA Bridge – Lower volumes and prices affecting unreg. activities
EBITDA BRIDGE – Lower volumes and prices affecting unreg. activities EBITDA BRIDGE (m€)* 246 4 3 12 203 (30) (26) (6) Unreg. Activities -56m€ Reg. Activities +1m€ 1Q 2013 Generation and Market Infrastruct. Water Waste Other 1Q 2014 DH EBITDA bridge - Key Elements: In spite of a positive contribution
Slide 6: Generation and DH – External variables impacted margins
GENERATION AND DH – External variables impacted margins. 1Q ’14 vs. 1Q ’13 1Q '13 1Q '14 Δ€m Δ% Electr. generation affected by lower volumes and prices: the drop in national thermo-electric production, broadly Revenues 338 302 (36) -11% reflected also in Iren’s figures, and a lower spark-spread EBIT
Slide 7: Market – Lower volumes and changes in CCI calculation drove the decrease
MARKET – Lower volumes and changes in CCI calculation drove the decrease in the sector 1Q ’14 vs. 1Q ’13 1Q '13 1Q '14 Δ€m Δ% Gas and Heat Sales: The key elements that impacted most Revenues 1,105 873 (232) -21% the performances are the recalculation of the CCI outlined by the AEEG (effective from 2
Slide 8: Distribution – Increase in tariff and absence of positive extraordinary items
DISTRIBUTION – Increase in tariff and absence of positive extraordinary items reported in 1Q 2013. 1Q ’14 vs. 1Q ’13 ENERGY INFRASTRUCTURE 1Q '13 1Q '14 Δ€m Δ% Electricity networks: Extraordinary items accounted for in the previous years explain the reported results. Revenues 79 77 (2) -2% EBITDA 38
Slide 9: Waste – Positive results from the new WTE in Parma
WASTE – Positive results from the new WTE in Parma 1Q ’14 vs. 1Q ’13 1Q '13 1Q '14 Δ€m Δ% Higher revenues: The strong increase in electricity and Revenues 53 56 3 7% heat production, deriving from the new WTE in Parma, drove EBITDA 10 13 3 28% the increase in revenues. EBIT 6 6 0 7% Relevant growth
Slide 10: From EBIT to Net Profit
From EBIT to Net Profit. 1Q ‘13 1Q ‘14 ∆% EBIT 175.9 128.7 -26.8% Financial charges (25.2) (25.7) • Financial Charges in line with 1Q 2013 Companies consolidated with E.M. (0.3) (2.8) Adj. in participations - - EBT 150.4 100.2 -33.4% • Lower Taxes, due to the Taxes (65.0) (45.4) decrease in EBT Prof
Slide 11: Cash-Flow & Debt Structure
CASH-FLOW & DEBT STRUCTURE. NFP Bridge 31.03.2014 Interest rate* and Debt Structure** 2,525 2,192 43 2 2,175 62 (333) (55) 28% (61) (9) 8% 64% Fixed Variable Swap Significant reduction compared to the FY 2013 reported NFP (2,525m€), equal to 351m€, mainly coming from t IFRS 11 (333m€). It led to a
Slide 12: Annexes
ren Annexes Pag. 12 of 14
Slide 13: Balance Sheet
Balance Sheet*. €m 31.12.2013 31.03.2014 Net fixed assets 4,527 4,513 Net Working Capital 151 213 Funds (474) (486) Other assets and liabilities (13) (18) Net invested Capital 4,191 4,222 Group shareholders’ equity 1,999 2,048 Net Financial Position 2,192 2,174 Total Funds 4,191 4,222 *Restated. Pag
Slide 14: Disclaimer
DISCLAIMER The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Mr. Massimo Levrino, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Finance Act (Legislative Decree No 58/1998), that the accounting info