Slide 1: Hera Group H1 results – Analyst presentation
Hera Group H1 results Analyst presentation 25th August 2011 www.gruppohera.it
Slide 2: Strong results despite all
Strong results despite all H1 ’11 growth rates Strong set of achievements in H1 contributing to bottom line. +14.1% +14.1% Growth underpinned by all businesses, +9.7% and particularly by Energy activities with +7.9% commercial development and procurement position more than offsetting mild winter eff
Slide 3: H1 '11 results confirm fast growth path despite crisis
H1 ’11 results confirm fast growth path despite crisis Contribution from all businesses and drivers Enhancement of tariffs, energy prices and volumes sold Bad debt provisioning reflects persisting difficult economic Lower interest charges conditions thanks to lower avg debt exposure Affected by addi
Slide 4: All value drivers and portfolio activities contributed to growth
All value drivers and portfolio activities contributed to growth Ebitda growth Drivers Organic Growth fuelled by gas and +9.7% electricity supply (Ebitda from 62 to 82 m€). +3.5 +3.0 344.0 +24.0 313.5 Increase in tariffs, customers, cross selling and synergies. 300 New plants: WTE Rimini (started th
Slide 5: Positive OpCF and sound financial structure confirmed
Positive OpCF and sound financial structure confirmed H1 Free cash flows H1 ’11 free cash generation fully funded working capital (up by 30.4 m€), capex by +195.2 138.8 m€ and M&A effects (consolidation of 150 50% JV Enomondo and Sadori acquisition). 100 50 +9.0 Stable financial debt over last 12 mo
Slide 6: Waste: harvesting from new asset base
Waste: harvesting from new asset base Financial highlights +6.7% revenues mainly driven by special waste volumes (+0.9%) and electricity production (+22%) offsetting slow down of Urban waste collected (- 2.9% H1 ’11 vs. +6.1% H1 ’10). Industrial figures Urban waste tariffs up by +3.5%. Ebitda underp
Slide 7: Water: tackling with real estate industry slowdown
Water: tackling with real estate industry slowdown Financial highlights Tariffs increase of +2.7% was offset by lower new connections/works to third parties. Ebitda stable with positive synergies and tariff effect offsetting higher electricity costs and lower revenues of non regulated activities (du
Slide 8: Gas: effective procurement offsets mild winter season effects
Gas: effective procurement offsets mild winter season effects Financial highlights Revenues growth mainly driven by higher commodity prices partially balanced by lower volumes (gas and district heating) related to mild winter season. Ebitda increase mainly driven by Volumes enhanced margins in suppl
Slide 9: Electricity: performance led by market expansion
Electricity: performance led by market expansion Financial highlights Revenues growth mainly driven by higher volumes related to “salvaguardia” services and market expansion (+30k and +40k customers in H1 respectively and +100k on yearly basis). Procurement and supply portfolio benefit from commodit
Slide 10: Capital expenditure in line with long term sustainability
Capital expenditure in line with long term sustainability Capital Exp. & Investments Capex further decreased in 2011 mainly due to the completion of WTE plants. H1 ’11 maintenance capex about 80% of total expenditure. Waste capex reduced due to completion of WTE plants. Investments mainly relates to
Slide 11: Closing remarks
Closing remarks Net profit track records CAGR Strong competitiveness on energy market 71 +17.5% underpinned positive performance. 63 41 47 Developed asset base almost fully 37 contributed to results. 20 Portfolio business resilience shown by H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 last 5Y track reco
Slide 12: Q&A session
Q&A session