Iren S.p.a. · MIL:IRE
Iren — 9M 2019 Earnings Presentation
14 slides from Iren's earnings presentation, Nov 8, 2019
Slide 1: 2019 9M Results
2019 9M RESULTS 8th November 2019
Slide 2: 9M 2019 KPIs and EBITDA bridge
9M 2019 Stripping out the extraordinary recognition of TEE and GC expiry, sound growth led by a positive performances in all the business units KPIs EBITDA BRIDGE E B IT DA 9M '18 -4.4% m€ 9M '19 Δ Δ% NE T W ORKS restated +9.0% Revenues 2,824 3,190 366 13.0% 706 WASTE 29 1 675 Ebitda 706 675 -31 -4.
Slide 3: Networks: organic growth, consolidation and synergies
NETWORKS Organic growth, consolidation and synergies confirmed as the main growth drivers m€ 9M '18 9M '19 Δ Δ% E B IT DA • Energy and water networks: RAB growth combined with synergies and Revenues 676 740 64 9% NE T W ORKS the consolidation of ACAM led the 7% Ebitda increase. Ebitda 246 264 18 7%
Slide 4: Waste: higher volumes for organic growth and consolidation
WASTE Higher volumes for both organic growth and consolidation • The Ebitda growth is affected by different positive elements: m€ 9M '18 9M '19 Δ Δ% E B IT DA • Organic growth related to disposal plants saturation (including Revenues 456 531 75 16% REI landfill contribution), higher prices and the i
Slide 5: Energy: positive scenario offset by lower hydro volumes
ENERGY The overall positive energy scenario and other positive elements have been partially offset by the negative hydroelectric volumes trend E B IT DA • The 9M ‘19 Ebitda of about 200m€ led to a 17% growth when compared m€ 9M '18 9M '19 Δ Δ% to the underlying 9M ‘18 Ebitda of roughly 170m€ (exclud
Slide 6: Market: margins recovery despite negative gas climate trend
MARKET Margins recovery despite a negative gas climate trend E B IT DA • Recovery in margins and a positive contribution from NDS projects m€ 9M '18 9M '19 Δ Δ% combined with negative climate effect on gas sales: Revenues 1,754 2,061 307 18% NE T W ORKS • Electricity sector: clients’ growth combined
Slide 7: From EBITDA to Net Profit
9M 2019 From EBITDA to Net Profit 9M '18 9M '19 Δ Δ% E B IT DA EBITDA 706.1 675.1 -31.0 -4.4% • Increase in D&A related to capital intensive investments, consolidation process (ACAM NE T W ORKS D&A and others -261.7 -307.3 and San Germano) and IFRS 16 application Provisions to bad debt -34.3 -23.7 W
Slide 8: Cash-flow and NFP Bridge
9M 2019 Cash-flow and NFP Bridge +162m€ E B IT DA +57m€ NE T W ORKS 105 2,615 38 2,510 2,453 72 WASTE 150 E NE R G Y 324 (212) M A R KET E B IT (291) (24) C A S HF LOW & NF P NFP 31.12.18 Net Profit D&A, provisions NWC Variation Capex Dividends Consolidation Derivatives and IFRS 16 NFP 30.09.19 and
Slide 9: Interest rate and debt structure
9M 2019 Interest rate and debt structure GROSS DEBT INTEREST RATE E B IT DA 88% of gross debt at fixed interest rate and 12% of gross 12% NE T W ORKS debt at variable interest rate. 17% WASTE Average long-term debt duration of about 71% 5.1 years vs 5.5 years in 9M 2018 (5.9 years after the E NE
Slide 10: Closing remarks and FY2019 guidance
9M 2019 Closing remarks E B IT DA Organic growth, consolidation and synergies keep on contributing in line with our business plan assumptions, allowing for a further strong profitability growth NE T W ORKS WASTE We are also carrying out the investments needed for enhancing organization and processes
Slide 11: Annexes
Annexes
Slide 12: Scenario
Scenario 9M '18 9M ’19 Δ% a Gas Demand (bcm) 51.5 53.9 4.7% n TTF €/000 scm 235 147 -37.4% n PSV €/000 scm 241 175 -27.4% Energy Demand (Twh) 242.2 241.9 -0.1% e PUN (€/Mwh) 58.9 53.8 -8.7% x CO2 €/Ton 14.4 24.9 72.7% e Green Cert. Hydro (€/Mwh) 99.0 92.1 -7.0% TEE (€/TEE) 253.1 260.0 2.7% s 2019 9M
Slide 13: Balance Sheet
Balance Sheet FY '18 9M ’19 a Net fixed assets 5,786 5,987 n Net Working Capital 132 108 Funds -621 -621 n Other assets and liabilities -282 -266 e Net invested capital 5,015 5,208 x Group Shareholders' equity 2,562 2,593 e Net Financial Position 2,453 2,615 s Total Funds 5,015 5,208 2019 9M RESULTS
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