Iren S.p.a. · MIL:IRE

Iren — FY2012 Earnings Presentation

14 slides from Iren's earnings presentation, Apr 11, 2013

  1. Slide 1: 2012 – FY Results

    11th of April 2013 2012 – FY Results

  2. Slide 2: FY 2012 – All the key indicators are positive

    FY 2012 – All the key indicators are positive. EURm FY ‘11 FY ‘12 ∆ ∆% REVENUES 3,521 4,328 +807.2 +22.9% EBITDA 592 630 +37.5 +6.3% EBITDA Adj. 592 599 +6.9 +1.2% EBIT 309 341 +32.3 +10.5% NET PROFIT -111 153 n.a. n.a. NET CAPEX* 466 286 -180.3 -38.7% NFP 2,653 2,555 -97.7 -3.7% Revenues up by 22.9

  3. Slide 3: EBITDA Bridge - Increase in EBITDA driven by Generation and DH

    EBITDA BRIDGE - Increase in EBITDA driven by Generation and DH. EBITDA BRIDGE (m€) 17 630 9 3 592 13 31 (3) (1) Etraordinary items: - GEA SpA. - RE fund. Unreg. Activities +12m€ - Via Bertola bulding. FY '11 Generation Market Infrastruct. Water Waste Other FY '12 and DH EBITDA bridge - Key Elements:

  4. Slide 4: Generation and DH - Brilliant performance in hydro and DH

    GENERATION AND DH - Brilliant performance in hydro and DH distribution more than offset the squeeze in margins in cogen. FY ’12 vs. FY ’11 Higher volumes and profitability in Hydro. IREN’s hydro FY '11 FY '12 Δ€m Δ% production stood at 1,075 Gwh (+10% IREN vs -8% at Revenues 840 983 143 17% national

  5. Slide 5: Market - Very good performance in gas sector

    MARKET - Very good performance in gas sector thanks to a flexible commercial policy. FY ’12 vs. FY ’11 Gas and Heat Sales: The positive trend reported in the first FY '11 FY '12 Δ€m Δ% 9M 2012 continues thanks both to an optimized Revenues 3.072 4.052 980 32% procurement portfolio which exploited ma

  6. Slide 6: Energy Infr. - Positive performance in a stable scenario

    ENERGY INFR. - Positive performance in a stable scenario. FY ’12 vs. FY ’11 Gas networks: Positive results based on higher revenues, FY '11 FY '12 Δ€m Δ% synergies and the disposal of the IREN’s stake in GEA S.p.A Revenues 383 385 2 1% (+11m€) EBITDA 171 179 8 5% Electricity networks: Profitability

  7. Slide 7: Water – Good results in a clearer regulatory framework

    WATER – Good results in a clearer regulatory framework. FY ’12 vs. FY ’11 Stable Revenues: Tariff increase in all the ATOs partially FY '11 FY '12 Δ€m Δ% offset the negative effect of IFRIC 12 and lower volumes Revenues 438 432 (6) -2% distributed. EBITDA 113 116 3 3% EBIT 36 40 4 10% Growth in EBIT

  8. Slide 8: Waste: Tariff increase did not completely offset lower volumes

    WASTE: Tariff increase did not completely offset lower electricity and GC volumes. FY ’12 vs. FY ’11 Slight decrease in revenues: net of the change in FY '11 FY '12 Δ€m Δ% consolidation perimeter (deconsolidation of Undis Servizi) Revenues 217 211 (6) -3% revenues would have been almost stable. EBIT

  9. Slide 9: From EBIT to Net Profit

    From EBIT to Net Profit. FY ‘11 FY ‘12 ∆% EBIT 308,6 340.9 +10.5% • Increase in financial Financial charges (69.9) (103.1) charges caused by higher interest rate and Companies consolidated with E.M. (3.8) +9.7 debt. Adj. in participations (224.3) (0.1) EBT 10.6 247.4 n.a. • 16m€ IRAP Taxes (113.0) (

  10. Slide 10: Cash-Flow & Debt Structure

    CASH-FLOW & DEBT STRUCTURE. NFP Bridge 31.12.2012 Interest rate* and Debt Structure** 2,653 400 22 16 2,555 (162) (158) 30% Includling a 60m€ 40% (165) (51) investments for AMIAT/TRM 30% Fixed Variable Swap  ~100m€ improvement in NFP compared FY 2011 and ~70m€ compared to 9M 2012, thanks mainly to

  11. Slide 11: Annexes

    ren Annexes 11

  12. Slide 12: Market Scenario

    Market Scenario. FY ‘11 FY ‘12 Δ% • In 2012 Brent average price stood at 111.3 Brent USD / bbl 111.3 111.7 - $/bbl, substantially stable compared to 2011. USD / € 1.39 1.28 -8% • USD/€ exchange rate was 1.28, dropped by 8% YoY. Brent € / bbl 80.0 86.9 9% • Gas demand fell by 4%, mainly because of th

  13. Slide 13: Balance Sheet

    Balance Sheet. €m 31.12.2012 31.12.2011 Net fixed assets 4,735 4,653 Net Working Capital 235 288 Funds (457) (417) Other assets and liabilities (4) (27) Net invested Capital 4,509 4,497 Net Financial Position 2,555 2,653 Group shareholders’ equity 1,954 1,844 Total Funds 4,509 4,497

  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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