Iren S.p.a. · MIL:IRE

Iren — H1 2016 Earnings Presentation

14 slides from Iren's earnings presentation, Aug 4, 2016

  1. Slide 1: 2016 – 1H Results

    4th August 2016 2016 – 1H Results

  2. Slide 2: 2016 1H – Results in line with BP targets

    2016 1H – Results in line with BP targets. ORGANIC Organic growth of approximately 21m€ (12m€ in 1Q 2016), coming mainly from the energy value GROWTH chain. SYNERGIES 16m€ of synergies already achieved (7m€ in 1Q 2016) representing more than 50% of 2016 target After the closing of TRM deal in Januar

  3. Slide 3: 1H 2016: All the Business Plan growth drivers confirmed

    1H 2016: All the Business Plan growth drivers confirmed. Income statement Ebitda Bridge m€ 1H '15 1H '16 Δ Δ% 30 417 378 21 16 Revenues 1,579 1,555 -24 -1.5% (19) (9) Ebitda 378 417 39 10.3% Ebit 217 242 25 11.7% Net profit 103 119 16 16.1% EBITDA 1H One-off Wacc Organic Synergies Consolid. EBITDA 1

  4. Slide 4: Generation and DH – Higher margins from cogen/thermo production

    GENERATION AND DH – Higher margins from cogen/thermo production. m€ 1H '15 1H '16 Δ Δ%  The positive trend in margins, already reported in 1Q 2016, continues thanks to a persistent positive difference between Revenues 398 403 5 1% gas and electricity prices. Ebitda 103 119 16 15%  Generation secto

  5. Slide 5: Market – Increase in customer-base and profitability confirmed

    MARKET – Increase in customer-base and profitability confirmed.  The strong growth in EBITDA derived from: m€ 1H '15 1H '16 Δ Δ%  Scenario - change in regulation both in regulated and free market (PCV) Revenues 1,199 1,084 -115 -10%  Company strategy – higher effectiveness of re-pricing Ebitda 62

  6. Slide 6: Networks – Positive results net of 2015 water tariff recovery

    NETWORKS – Positive results net of 2015 water tariff recovery. m€ 1H '15 1H '16 Δ Δ% • Electricity networks: The slight decrease in EBITDA is Revenues 392 400 8 2% mainly linked to the absence of a positive equalization reported in 1H 2015 and wacc reduction, partially offset by Ebitda 159 148 -11 -

  7. Slide 7: Waste – 76% growth thanks to changes in perimeter and urban waste flow

    WASTE – 76% growth thanks to changes in perimeter and in urban waste flow. m€ 1H '15 1H '16 Δ Δ%  The strong increase in the BU’s margins, in spite of the Revenues 234 254 20 9% drop in electricity price, is linked principally to: o the territorial consolidation process (~25m€) Ebitda 36 63 27 76%

  8. Slide 8: From EBITDA to Net Profit

    From EBITDA to Net Profit. 1H '15 1H '16 Δ Δ% EBITDA 378.1 417.1 39.0 10.3% D&A -130.9 -143.0  Higher D&A linked mainly to TRM Provisions -30.5 -32.1 consolidation. EBIT 216.7 242.0 25.3 11.7% • Higher Financial charges for loans due Financial charges for loans -41.0 -46.9 to TRM consolidation. Oth

  9. Slide 9: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. 428 2,544 2,169 87 2 2,116 98 15 (131) (15) (108) NFP 31 .12 .15 Net Profit D&A and NWC Capex Dis posals Div idends Others Ordinary ∆ Cons. NFP other Variation and paid NFP 30 .06 .16 Perimeter 30.06.201 6 ope rat ing dividends change s received  Net of the TRM and Atena c

  10. Slide 10: Interest rate and debt structure

    Interest rate and debt structure. Gross debt interest rate  20% of gross debt at variable interest rate.  Average long-term debt duration of about 5.0 years.  Slight reduction in cost of debt (3.5%) compared to 1Q 2016 (3.6%). Debt structure  IREN’s debt is formed of:  36% bonds  33% EIB loans

  11. Slide 11: Annexes

    ren Annexes Pag. 11

  12. Slide 12: Market Scenario

    Market Scenario. 1H '15 1H '16 Δ% Brent USD/bbl 57.9 39.7 -31% €/USD 1.1 1.1 = Brent €/bbl 51.9 35.6 -31% Gas Demand (bcm) 35.2 35.7 1% PSV €/000 scm 248 182 -36% Energy Demand (Twh) 153.2 151.5 -1% PUN (€/Mwh) 49.8 37.0 -26% CO2 €/Ton 7.2 5.7 -21% Green Cert. Hydro (€/Mwh) 99.9 100.1 = • PUN hit in

  13. Slide 13: Balance Sheet

    Balance Sheet. 1H '16 FY '15 Net fixed assets 5,114 4,648 Net Working Capital 168 154 Funds -521 -526 Other assets and liabilities -48 -46 Net invested capital 4,713 4,231 Group Sharholders' equity 2,169 2,062 Net Financial Position 2,544 2,169 Total Funds 4,713 4,231 Pag. 13

  14. 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

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