Iren S.p.a. · MIL:IRE
Iren — 9M 2020 Earnings Presentation
15 slides from Iren's earnings presentation, Nov 10, 2020
Slide 1: Iren Results 9M 2020
IREN RESULTS 9M 2020 10th November 2020
Slide 2: 9M 2020 Recurrent Ebitda increase in a negative scenario
9M 2020 Recurrent Ebitda increase in a negative scenario KPIs EBITDA BRIDGE (m€) m€ 9M '19 9M '20 Δ Δ% -3.3% +1.1% Revenues 3,190 2,629 -561 -17.6% 675 8 30 648 5 653 Ebitda 675 653 -22 -3.3% 641 (6) (34) Ebit 344 290 -54 -15.6% (25) Group net profit 191 153 -38 -19.7% Tech. Capex 324 414 90 27.9% E
Slide 3: Networks: RAB growth and synergies support the Ebitda rise
NETWORKS RAB growth and synergies support the Ebitda rise +RAB growth combined with +2.9% EBITDA BRIDGE (m€) synergies led the 3% Ebitda increase 5 1 2 272 264 +Despite the slowdown caused by the lockdown, investments are in line with the BP assumptions +Strong acceleration in the Ebitda Water Elect
Slide 4: Waste: Negative impact of low PUN and volumes
WASTE Negative impact of low PUN and volumes +Higher margins on collection -4.4% EBITDA BRIDGE (m€) activities +I.Blu positive contribution for 2m€ 126 3 120 +Saturation of WTE plants, through (9) the reorganization of flows +Sorted waste increased to 69.1% Ebitda Collection Treatment Ebitda 9M '19
Slide 5: Energy: Weak generation and lower heat contribution
ENERGY Weak generation and lower heat contribution +Higher hydro volumes -22.6% EBITDA BRIDGE (m€) -14.4% +Positive results in the ancillary 199 services market (60m€ vs 50m€ 174 in 2019), despite a decline in Q3 (25) 5 154 (7) (1) 1 149 + Increase in thermo volumes (18) - Lower coge volumes Ebitda
Slide 6: Market: Commercial policy led to margins stabilization
MARKET Commercial policy led to margins stabilization +Positive repricing policy and +23.7% EBITDA BRIDGE (m€) hedging activities in both sectors +40.0% 1 105 7 + Customer base at 1.873m 84 22 75 clients (+57k vs FY2019) (9) + Iren Plus positive contribution - Lower electricity volumes mainly in SME
Slide 7: Profit and loss
9M 2020 Profit and loss FROM EBITDA TO GROUP NET PROFIT (m€) 9M '19 9M '20 Δ Δ% EBITDA 675.1 652.6 -22.5 -3.3% Release of Hydroelectric provision funds for D&A and others -307.4 -311.1 16 m€ Provisions to bad debt -23.7 -51.3 Higher provisions to bad debt related to EBIT 343.9 290.2 -53.8 -15.6%
Slide 8: Cash-flow and NFP
9M 2020 Cash-flow and NFP NET FINANCIAL POSITION BRIDGE (m€) +209m€ 149 17 2.915 2.706 76 (25) 414 (174) 67 (315) NFP 31.12.19 Net Profit D&A, NWC Variation Capex Consolidation Dividends SBB Derivatives NFP 30.9.20 provisions and other The increase is due to the strong growth in investments, conso
Slide 9: Financials
9M 2020 Financials INTEREST RATE DEBT STRUCTURE MATURITIES 3% 14% 17% 561 420 229 190 83% 83% 58 Fixed Swap Variable Bonds Loans 2020 2021 2022 2023 2024 97% of gross debt at fixed interest rate and 3% of 54% of the Iren total debt is composed by green and gross debt at variable interest rate as
Slide 10: Closing remarks
9M 2020 Closing remarks MAIN 9M 2020 TAKEAWAYS COVID IMPACTS ON FY 2020 CONFIRMED Ebitda decrease lead by the absence of several positive one-offs The visibility achieved after the 9M leads to confirm the Covid reported last year and by a 3Q results in line with our impacts on FY 2020: expectation
Slide 11: Annexes
Annexes
Slide 12: Business units' results
9M 2020 Business units’ results NETWORKS WASTE m€ 9M '19 9M '20 Δ Δ% m€ 9M '19 9M '20 Δ Δ% Revenues 740 745 5 1% Revenues 531 533 2 0% Ebitda 264 272 8 3% Ebitda 126 120 -6 -4% Electricity 55 56 1 2% Collection 42 45 3 7% Gas 63 65 2 3% Water 146 151 5 3% Treatment & disposal 84 75 -9 -11% Ebit 140
Slide 13: Scenario
9M 2020 Scenario 9M '19 9M ’20 Δ% Gas Demand (bcm) 53.9 49.5 -8.1% TTF €/000 scm 147 80 -45.4% PSV €/000 scm 175 95 -45.6% Energy Demand (Twh) 241.9 225.1 -6.9% PUN (€/Mwh) 53.8 35.6 -33.8% CO2 €/Ton 24.9 23.8 -4.3% Green Cert. Hydro (€/Mwh) 92.1 99.1 +7.5% TEE (€/TEE) 260 260 - 14 CASHFLOW & CLOSIN
Slide 14: Balance sheet
9M 2020 Balance sheet FY ’19* 9M ’20 Net fixed assets 6,101 6,232 Net Working Capital 166 232 Funds -625 -590 Other assets and liabilities -284 -287 Net invested capital 5,358 5,587 Group Shareholders' equity 2,652 2,672 Net Financial Position 2,706 2,915 Total Funds 5,358 5,587 15 CASHFLOW & CLOSIN
Slide 15: Disclaimer
9M 2020 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 account