Hera S.p.a. · MIL:HER
Hera — Gruppo Hera — H1 2018 Earnings Presentation
16 slides from Hera's earnings presentation, 2018
Slide 1: H1 2018 financial results
H1 2018 financial results
Slide 2: Highlights on H1 2018 results
Highlights on H1 2018 results H1 main growth rates (M€) +12.1% +8.4% +3.5% +4.3% Ebitda Ebit Pre tax Net Profit H1 healthy results speed up net profit growth GRUPPOHERA 01
Slide 3: Resilient growth track record in a turbulent environment
Resilient growth track record in a turbulent environment H1 EPS growth of last 5 years H1 ROE growth of last 5 years (€c) (%) +9.1% CAGR 10.8 10.1% 9.6 9.0% 8.2 7.9% 8.4% 7.3 7.1% 7.0 6.8 6.6% Adj. H'14 H'15 H'16 H'17 H'18 H'13 H'14 H'15 H'16 H'17 H'18 H'13 Higher returns and solid financial structu
Slide 4: H1 2018 EBITDA: Growth underpinned by all activities
H1 2018 EBITDA Ebitda growth (M€) +17.7 m€ (+3.5%) +10.8 523.6 +6.9 505.9 Mainly underpinned by: Mainly underpinned by: • Market expansion • Efficiencies • Price increase • Synergies • Growth in demand • Tariff increases H1 '17 Regulated Liberalized H1 '18 (Networks + Waste Coll.) (Energy + Waste Tr
Slide 5: WASTE: prosecuting growth
WASTE: prosecuting growth Ebitda growth drivers Waste volumes from third parties (M€) (kton) +40.9 +29.8 +5.7 125.9 121.3 (11.1) (1.1) Special waste Urban waste Waste from Mkt Bio-methane plant construction on schedule 2Q 3Q 4Q Construction Start up Full operations H1 '17 Incentives Internal Growth
Slide 6: NETWORKS: tariffs and cost savings progressing
NETWORKS: tariffs and cost savings progressing Ebitda breakdown by business (M€) +1.9 219.6 +4.2 (0.4) +1.5 212.4 H1 '17 Water Gas distr. EE distr. D.H. H1 '18 Continuous efficiency improvement GRUPPOHERA 05
Slide 7: ENERGY: enhancing the intangible asset
ENERGY: enhancing “the” intangible asset Ebitda growth by activities Customer base growth (M€) (‘000) +110k customers 2,426.4 +13.0 +1.3 +26.8 +82.8 162.3 165.6 2316.8 (11.0) H1 '17 Gas Electricity Power Gen. & H1 '18 H1 '17 Electricity Gas H1 '18 Heat Mgmt Sales and trading main growth driver GRUPP
Slide 8: Enhanced both financial and tax profile
Enhanced both financial and tax profile H1 Financial Inc./(Expenses) H1 EPS growth (M€) (c€) Cagr: +9.1% H1'13 H1'14 H1'15 H1'16 H1'17 H1'18 10.8 9.6 (39.2) 8.2 (45.9) 7.3 (64.0) (66.1) (61.3) (58.0) 7.0 6.8 H1 Tax rate (%) 42.9% 39.3% 37.2% 35.7% 31.6% 30.1% Adj. H'13 H'14 H'15 H'16 H'17 H'18 H1'13
Slide 9: Cash flows: More with less
Cash flows Free cash flows H1 2018 Comparison with data as at 30th June 2017 (M€) Financial debt Debt/Ebitda (B€) (12 months rolling) +385.5 2.61 2.63 2.74x 2.62x (78.5) (32.2) +85.8 (173.5) (15.5) Op. CF NWC Provision Net Deferred FCF Debt H1'17 Debt H1'18 Debt/Ebitda Debt/Ebitda capex tax H1'17 H1
Slide 10: Closing remarks
Closing remarks • Resilient and solid growth in a turbulent environment enhanced Return on Equity. • DPS of 9.5 Euro cents paid in June and ROE H1 2018 EPS (%) (c€,%) +12.5% DPS 2019, as promised, will move up to 10.0c€. >10% 10.8c€ • H1 EPS at 10.8 Euro cents is slightly ahead of our business plan
Slide 11: Annex
Annex ir@gruppohera.it
Slide 12: Annex: P&L
Annex: P&L H1 Profit & Loss (M€) H1 ’17 H1 ’18 REVENUES 2,956.3 3,176.5 +7.4% EBITDA 505.9 523.6 +3.5% Ebitda margin 17.1% 16.5% Depreciation and provisions (243.7) (250.0) EBIT 262.2 273.6 +4.3% Financial costs (43.5) (38.8) Figurative interests (IAS) (10.6) (9.0) Income from Associates & J.V. 8.2
Slide 13: Annex: Waste
Annex: Waste P&L (m€) Q1 2017 Q1 2018 Ch. Q2 2017 Q2 2018 Ch. H1 2017 H1 2018 Ch. Revenues 240.2 271.1 +31.0 306.2 290.3 (15.9) 546.4 561.4 +15.1 Ebitda 64.0 66.5 +2.5 57.3 59.4 +2.1 121.3 125.9 +4.6 Volumes Data Q1 2017 Q1 2018 Ch. Q2 2017 Q2 2018 Ch. H1 2017 H1 2018 Ch. Urban W. Volumes (Kton) 527
Slide 14: Annex: Water
Annex: Water P&L (m€) Q1 2017 Q1 2018 Ch. Q2 2017 Q2 2018 Ch. H1 2017 H1 2018 Ch. Revenues 201.8 193.2 (8.7) 205.0 219.1 +14.1 406.9 412.3 +5.5 Ebitda 53.3 55.6 +2.3 58.1 57.3 (0.8) 111.3 112.8 +1.5 Volumes Data Q1 2017 Q1 2018 Ch. Q2 2017 Q2 2018 Ch. H1 2017 H1 2018 Ch. Aqueduct (mm3) 71.1 68.9 (2.
Slide 15: Annex: Gas
Annex: Gas P&L (m€) Q1 2017 Q1 2018 Ch. Q2 2017 Q2 2018 Ch. H1 2017 H1 2018 Ch. Revenues 650.4 780.0 +129.6 287.5 348.8 +61.3 937.9 1,128.8 +190.9 Ebitda 135.6 148.2 +12.5 36.2 40.2 +4.0 171.8 188.4 +16.5 Volumes Data Q1 2017 Q1 2018 Ch. Q2 2017 Q2 2018 Ch. H1 2017 H1 2018 Ch. Volumes distrib. (mm3)
Slide 16: Annex: Electricity
Annex: Electricity P&L (m€) Q1 2017 Q1 2018 Ch. Q2 2017 Q2 2018 Ch. H1 2017 H1 2018 Ch. Revenues 634.1 648.0 +13.9 513.4 536.2 +22.7 1,147.6 1,184.2 +36.7 Ebitda 48.4 45.3 (3.2) 43.1 38.7 (4.4) 91.6 84.0 (7.6) Volumes Data Q1 2017 Q1 2018 Ch. Q2 2017 Q2 2018 Ch. H1 2017 H1 2018 Ch. Volumes sold (GWh