Iren S.p.a. · MIL:IRE

Iren — FY2014 Earnings Presentation

16 slides from Iren's earnings presentation, Mar 13, 2015

  1. Slide 1: 2014 – FY Results

    13th March 2015 2014 – FY Results

  2. Slide 2: 2014: A year characterised by significant operations

    2014: A year characterised by significant operations….. At the end of December, IREN, through the SPV, AmiatV, bought a further 31% in AMIAT S.p.A. (the Company managing waste collection in Turin) to now hold 80% of its share capital. In May, IREN exercised the call option on a further 24% of TRMV (

  3. Slide 3: …. and significant one-offs

    …. and significant one-offs. 2014 was one of the warmest years of the last century, with a negative effect on both heat CLIMATE production and gas sales for a total of approximately 40m€ (vs. 2013). The revision of gas tariff brought a change in the calculation of CCI which negatively impacted REGUL

  4. Slide 4: External factors affecting 2014 operating results

    External factors affecting 2014 operating results. Income statement Ebitda Bridge m€ FY '131 FY '141 Δ Δ% 652 41 638 21 623 Revenues 3,373 2,902 -470.9 -14.0% (3) (36) (52) Ebitda 652 623 -29.7 -4.5% Eb itda margin 19.3% 21.5% Ebit 331 325 -5.6 -1.7% Net profit 89 69 -19.7 -22.2% FY 2013 Unreg. Reg.

  5. Slide 5: Generation and DH – First 9M 2014 trend confirmed

    GENERATION AND DH – First 9M 2014 trend confirmed. Lower margins led by: m€ FY '13 FY '14 Δ Δ%  Lower volumes in the district heating sector due to the extraordinary mild temperature, together with the GCs Revenues 1,048 827 -221 -21% partial expiry (-20m€). Ebitda 236 199 -37 -15%  Lower profitab

  6. Slide 6: Market – Margins negatively impacted by external elements

    MARKET – Margins negatively impacted by external elements. m€ FY '13 FY '14 Δ Δ%  The Gas Sales’ trend reflects the negative impact of the Revenues 3,098 2,388 -710 -23% new reg. framework (CCI) and of the extremely mild temperature, partially also recorded with relation to last Ebitda 107 91 -16 -

  7. Slide 7: Distribution – Cost-savings and one-offs

    DISTRIBUTION – Cost-savings and one-offs. ENERGY INFRASTRUCTURE m€ FY '13 FY '14 Δ Δ% • Electricity networks: lower margins linked to the Revenues 334 341 7 2% disposal of Turin extra-urban networks and fewer services to end clients. Ebitda 154 152 -2 -1% Electricity 80 74 -6 -8% • Gas networks: gro

  8. Slide 8: Waste – Relevant improvement in performances

    WASTE – Relevant improvement in performances. m€ FY '13 FY '14 Δ Δ%  Revenues and EBITDA strongly benefitted mainly Revenues 214 238 24 11% from:  The coming on stream of the new WTE in Parma; Ebitda 37 48 11 31%  Strong increase in special waste collection +25%. Ebit 6 14 8 132%  Sorted waste c

  9. Slide 9: From EBITDA to Net Profit

    From EBITDA to Net Profit. FY '13 FY '14 Δ% EBITDA from op. 652.3 638.0 -2.2% Redundancy scheme a -36.0 R.E. fund cap. gain 21.0 EBITDA 652.3 622.7 -4.5%  Higher D&A related mainly to the Tusciano D&A -217.3 -247.9 and Turbigo plants and to WTE in Parma . Provisions -104.1 -49.4  Lower provisions.

  10. Slide 10: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. Including approx. 90m€ for the acquisition of a number of stakes in different companies • -69m€ AMIAT (AMIAT, TRMV, Tecnoborgo etc) • +21m€ Capital gain from RE. Fund 2,525 74 5 2,192 349 47 2,286 2,238 (333) 4 (33) (48) (86) (266) NFP 31.12.13 IFRS 11 NFP 31.12.13 Net Pr o

  11. Slide 11: Interest rate and debt structure

    Interest rate and debt structure. Gross debt interest rate  28% of gross debt at variable interest rate. 15%  Average long-term debt duration of about 5.1 28% 57% years. Fixed Variable Swap  Slight reduction in cost of debt (3.8% compared to 3.9% in FY 2013). Debt structure  Strong increase in p

  12. Slide 12: Closing remarks

    Closing remarks. In spite of the negative impact of a number of external extraordinary elements, Gruppo Iren: - managed to keep operating margins nearly stable, thanks to its well-balanced business portfolio (EBITDA: 55% from regulated activities, 45% from unregulated activities). - prepared the gro

  13. Slide 13: Annexes

    ren Annexes Pag. 13

  14. Slide 14: Market Scenario

    Market Scenario. FY '13 FY '14 Δ% Brent USD/bbl 108.7 99.2 -8.7% USD/€ 1.33 1.33 +0.1% Brent €/bbl 81.8 74.7 -8.7% Gas Demand (bcm) 69.5 61.4 -11.6% PSV €/000 scm 296 246 -17.0% Energy Demand (Twh) 319 309 -3.0% PUN (€/Mwh) 63.0 52.1 -17.3% 2 CO €/Ton 4.5 5.9 +32.5% Green Cert. Hydro (€/Mwh) 82.7 85

  15. Slide 15: Balance Sheet

    Balance Sheet*. FY '13 FY '14 Net fixed assets 4,541 4,619 Net Working Capital 151 238 Funds -474 -550 Other assets and liabilities -17 -28 Net invested capital 4,202 4,279 Group Sharholders' equity 2,010 1,994 Net Financial Position 2,192 2,285 Total Funds 4,202 4,279 *Restated. Pag. 15

  16. Slide 16: Disclaimer

    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 accounting info

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