Slide 1: Hera H1 '10 results
Hera H1 ’10 results Analyst presentation www.gruppohera.it
Slide 2: H1 2010: Enhancing results
H1 2010: Enhancing results > Hera’s Ebitda and Net profit enhancement > Volume increase from third parties by +15.6% and +33.8% respectively. (+8%) partly underpinned the waste performance which benefited also > All businesses positively contributing from progressive contribution from to achieved re
Slide 3: Results posted only partly determined by better economic conditions
Results posted only partly determined by better economic conditions M€ H1 '09 % H1 '10 % Ch.% Revenues* 2,253.0 100.0% 1,919.3 100.0% (14.8%) Ebitda 271.3 12.0% 313.5 16.3% +15.6% D&A (127.7) (5.7%) (138.7) (7.2%) +8.6% Ebit 143.7 6.4% 174.8 9.1% +21.6% Financials (43.3) (1.9%) (47.4) (2.5%) +9.5% F
Slide 4: Organic growth achieved in all main businesses
Organic growth achieved in all main businesses Ebitda growth Drivers (m€) +11.0 313.5 +15.6% • Synergies (efficiency gains and operating +31.2 cost cutting) and Organic growth 271.3 (regulated tariffs and market expansion strategy in waste and energy activities) overcome pure economic recovery. • Ne
Slide 5: Volume development driven by increased treatment capacity
Volume development driven by increased treatment capacity Volume treated increased by 10% cagr over last M€ H1 '09 % H1 '10 % Ch. % 2 years despite crisis. WTE increased by +20% vs Revenues 313.3 100.0% 350.8 100.0% +12.0% -3% cagr of landfills. Operat. Costs (163.5) (52.2%) (183.4) (52.3%) +12.2% P
Slide 6: Water tariff increase and lower electricity cost supported results
Water tariff increase and lower electricity cost supported results M€ H1 '09 % H1 '10 % Ch. % Revenues Revenues 219.6 100.0% 231.9 100.0% +5.6% Operat. Costs (161.5) (73.6%) (123.3) (53.2%) (23.6%) Sales growth mainly driven by tariff increase Personnel (51.8) (23.6%) (52.5) (22.6%) +1.4% (+3.8%) pa
Slide 7: All gas drivers up
All gas drivers up Revenues Higher volumes sold mainly related to cold winter M€ H1 '09 % H1 '10 % Ch. % season and trading activities (1.1m customer base Revenues 756.5 100.0% 678.0 100.0% (10.4%) consolidated: new acquisitions offset churn). Operat. Costs (662.4) (87.6%) (548.7) (80.9%) (17.2%) Pe
Slide 8: Volume growth with enhanced profitability
Volume growth with enhanced profitability Revenues M€ H1 '09 % H1 '10 % Ch. % Sales increase underpinned by market expansion Revenues 931.6 100.0% 646.4 100.0% (30.6%) (+16% H/H in volume sold to final customers). Customer Operat. Costs (906.2) (97.3%) (608.7) (94.2%) (32.8%) base reached ~350k clie
Slide 9: Other services
Other services M€ H1 '09 % H1 '10 % Ch. % Revenues 53.0 100.0% 48.7 100.0% (8.1%) Operat. Costs (35.1) (66.2%) (31.5) (64.6%) (10.3%) Personnel (8.8) (16.6%) (10.1) (20.7%) +14.8% Capitaliz. 1.5 2.9% 0.7 1.4% (52.3%) Ebitda 10.7 20.1% 7.8 16.1% (27.2%) Ebitda Ebitda decrease mainly driven by TLC bus
Slide 10: Capex and Net Financial Debt in line with expectations
Capex and Net Financial Debt in line with expectations Capex (m€) H1 '09 H1 '10 Declining capex in line with projections Waste 62.0 44.3 Waste: 24m€ relates to new WTE plants. Water 52.7 44.3 Gas 31.5 21.6 Water: capex compliant to ATO agreements, with some Electricity 19.6 24.0 reductions related t