Slide 1: Shoving off - Hera Group H1 results
Shoving off Hera Group H1 results Analyst presentation 28th August 2013
Slide 2: H1 '13: positive growth and first synergies underpin results
H1 ‘13: positive growth and first synergies underpin results H1 Result Highlights H1 ’13 strong growth in all main financial (m€) +24.5% targets driven by the Acegas Aps consolidation and by merger synergies. 445 358 +19.7% +73.7% Positive performance in all businesses +123.9% even on “proforma basi
Slide 3: H1 '13: still strong growth even on proforma basis
H1 ’13: still strong growth even on “proforma” basis ####### ####### (m€) H1 '12 ** % H1 '13 % Ch.% Revenues* 2,383.4 100.0% 2,536.9 100.0% +6.4% Operat. Costs (1,820.5) (76.4%) (1,852.9) (73.0%) +1.8% Personnel (192.2) (8.1%) (246.4) (9.7%) +28.2% Reduced trading Financial charges Capitaliz. 13.1 0
Slide 4: Ebitda growth both in Hera and Acegas Aps
Ebitda growth both in Hera and Acegas Aps Ebitda growth • H1 Ebitda perc. margin up to 17.6% (from (m€) 15.5%) underpinned by reduced trading +24.5% activity on commodities. 480 +24.0 +3.5 445.3 • Both liberalised and regulated activities +60.2 performed positive Ebitda growth. 357.6 380 • Acegas Ap
Slide 5: Positive operating cash flows
Positive operating cash flows 5 00 H1 2013 Free cash flows 4 00 (m€) H1 Free cash generation reached 71m€. 3 00 +274.1 (24.8) Financial debt stood almost stable (2.75 2 00 (43.2) b€ vs proforma 2.69 b€ as at 31/12/’12 ). 1 00 +71.0 (120.3) (14.8) New bonds issued (700m€ with 15Y duration 0 + 100m€ w
Slide 6: Waste: recovery in Special waste volumes speeds up Ebitda growth
Waste: recovery in Special waste volumes speeds up Group Ebitda records double digit growth rates Ebitda growth on like for like basis. (m€) +11.6% +12.6 121.2 Higher special waste volumes +85K tons (plus 53K +18.6 108.6 100 90.0 tons from Acegas Aps) and increased renewable electricity gen. (+70 GW
Slide 7: Water: tariff framework underpinned results
Water: tariff framework underpinned results Group Ebitda increase underpinned by Financial highlights new tariff framework and M&A. (m€) H1 '12 H1 '13 Ch. % Revenues 286.4 336.1 +17.4% Volumes (-5% on like for like basis) and Ebitda 74.0 102.4 +38.5% new connections still affected by negative macro
Slide 8: Gas: good performance in spite of lower whole sale trading
Gas: good performance in spite of lower whole sale trading Financial highlights Revenues reflect reduced trading volumes due to fall in demand of CCGT plants. (m€) H1 '12 H1 '13 Ch. % Revenues 994.0 987.8 (0.6%) Ebitda 148.7 174.2 +17.2% Volumes sold to final clients slightly increased (outperformin
Slide 9: Electricity: market expansion continues
Electricity: market expansion continues Financial highlights Revenues affected by lower sales as a consequence of the negative macro (m€) H1 '12 H1 '13 Ch. % scenario (-3.9% domestic demand) and Hera selective commercial policy. Revenues 812.2 772.3 (4.9%) Ebitda 35.3 43.7 +23.9% of which Acegas Aps
Slide 10: Closing remarks
Closing remarks In difficult scenario, proactive marketing H1 EPS* track record approach and M&A contributed to enhance (€ cents) value creation (normalised EPS 5 year CAGR 20 .0 12.3 about 10.7%). Acegas Aps aggregation activities progress on track yielding good results in terms of 15 .0 synergy ex
Slide 11: Q&A session
Q&A session
Slide 12: Proforma Profit and Loss accounts
Proforma Profit and Loss accounts Proforma P&L H1 2012 and 2013 (m€) ADJ Proforma H1 '12** H1 '13^ Ch.% Revenues* 2,700.0 2,536.9 (6.0%) Operat. Costs (2,028.3) (1,852.9) (8.6%) Personnel (240.9) (246.4) +2.3% Capitaliz. 13.1 7.8 (40.5%) Ebitda 417.8 445.3 +6.6% D&A (183.3) (198.7) +8.4% Ebit 234.4