Slide 1: Highlights: All the More - Y2016 Financial Results
Slide 2: Index
INDEX PAG. 01 PAG. 03 PAG. 08 PAG. 10 EQUITY GROWTH CLOSING Sustainability STORY DRIVERS REMARKS PAG. 7 PAG. 7 Industrial TRACK FINANCIAL DEVELOP- RECORD Soundness MENT PAG. 02 PAG. 04 PAG. 09
Slide 3: MORE in everything
TOMASO TOMMASI DI VIGNANO Executive Chairman MORE in everything GRUPPOHERA
Slide 4: The pillars of our Equity story
The pillars of our Equity story GROWTH CLOSING Sustainability DRIVERS REMARKS PAG. 7 Industrial TRACK FINANCIAL DEVELOP- RECORD Soundness MENT Hera compass GRUPPOHERA 01
Slide 5: All drivers at work to maintain our un-interrupted growth
All drivers at work to maintain our “un-interrupted” growth EBITDA growth at +7.3% CAGR Net profit growth at +14.7% CAGR (M€) (M€) 917 180 207 868 884 165 165 810 105 119 645 662 '11 '12 '13 '14 '15 '16 '11 '12 '13 '14 '15 '16 M&A track record: 13 deals since ‘11 DEBT/EBITDA enhanced (x) Multi-utili
Slide 6: 2016 EBITDA growth drivers
2016 EBITDA growth drivers Ebitda growth +3.7% (M€) +9.1% 917 965 884 +13.8 (48.0) +66.4 A'15 Org. Growth Acquisitions A'16 Adj Wacc & Inc. A'16 More in everything GRUPPOHERA 03
Slide 7: MORE with less
STEFANO VENIER C.E.O. MORE with less GRUPPOHERA Track record
Slide 8: WASTE: A further expansion of our leading platform
WASTE: A further expansion of our leading platform Waste volumes from third parties Ebitda growth by business (kton) (M€) +345.5 +73.7 +86.0 +72.6 +113.2 +12.7 230.0 +5.0 230.7 Q1 Q2 Q3 Q4 A'16 (16.7) 2017 Acquisitions Urban Waste treatments (%) 9% 100% 35% Aliplast 56% Teseco A'15 Organic G. Acquis
Slide 9: NETWORKS: Cost savings offset most part of Wacc cut
NETWORKS: Cost savings offset most part of Wacc cut Ebitda growth drivers WACC impact on Nets (M€) (M€) (2.9) (24.5) (8.9) +3.1 +6.6 +1.6 +8.9 428 424.2 (12.7) Organic Growth (24.5) Water Gas distr. EE distr. WACC cut Water quality premium achievement (%, M€ Ebitda) 98.4% ~ 2 m€ Water quality standa
Slide 10: ENERGY: Exploited all opportunities
ENERGY: Exploited all opportunities Ebitda growth drivers Customers growth (M€) (million unit) Cagr +7.2% 2.18 2.26 +1.4 240.4 +34.5 1.60 204.6 '11 '12 '13 '14 '15 '16 Digital customers growth (%) Cagr +17.2% 17.5% 15.9% 7.9% A'15 Organic. G. Acquisition One Offs A'16 '11 '12 '13 '14 '15 '16 More vi
Slide 11: Improving financial and tax profile
Improving financial and tax profile Cost of Debt Tax rate 2016 EPS growth (%) (%) (%) 4.6% 4.4% 44.8% 42.7% 4.2% 40.2% 4.0% 38.2% 36.8% 3.8% 3.7% 35.1% +14.8% A'11 A'12 A'13 A'14 A'15 A'16 A'11 A'12 A'13 A'14 A'15 A'16 A'16 Achieving 8.6% ROE in 2016 GRUPPOHERA 07 Industrial Development Development
Slide 12: Global agenda goals concretely addressed by Hera actions
Global agenda goals concretely addressed by Hera actions Global agenda goals Hera impact areas and achievements^ 94.4% Waste Circular recovered Water economy resources 64% packaging 10.3 cm/km/day 300m€ recycled Water leakage 1/3rd of Group Ebitda Renewable Energy Green house energy efficiency Gas e
Slide 13: MORE than sound
LUCA MORONI CFO MORE than sound GRUPPOHERA
Slide 14: Cash flows
Cash flows Free cash flows 2016 5Y FCF growth & Debt/Ebitda ratio (M€) (% cumulated incr. FCF, Debt/Ebitda ratio) +50% cagr +57.1 +608.9 (35.1) 3.35x 3.17x 3.08x 3.04x 3.00x +267 (364.3) 2.79x 0 A'11 A'12 A'13 A'14 A'15 A'16 Op. CF NWC Provisions Capex Free CF FCF More than sound GRUPPOHERA 09
Slide 15: MORE in everything
TOMASO TOMMASI DI VIGNANO Executive Chairman MORE in everything GRUPPOHERA
Slide 16: Closing remarks
Closing remarks 3 years cumulated results (Board mandate) • 2016, first year of 5Y business plan to 2020, shows effectiveness of NET PROFIT* business model and reliability of +84m€ (+69%) growth perspectives. Cumulated EBITDA per *excluding extraordinary DIVIDENDS paid EMPLOYEE 392m€ +10% since ‘13
Slide 17: Annex
Annex Investor Relations contacts: Mail: ir@gruppohera.it +39 051 287040 Head of IR Jens Klint Hansen jens.hansen@gruppohera.it 0 IR investor GRUPPOHERA
Slide 18: Waste business
Waste business Acquisitions Economics (M€) A’15 A’16 EBITDA 230.0 230.7 Aliplast Geo Nova Volumes (Kton) A’15 A’16 Teseco Waste Recycling Urban waste 2,041 2,048 Special waste 2,002 2,341 Waste from third parties 4,043 4,388 Internal Waste production 2,183 2,479 Total volumes treated 6,226 6,868 GRU
Slide 19: Water business
Water business Economics (M€) RAB (M€) A’15 A’16 EBITDA 232.5 228.8 1.47 1.42 Volumes sold (Mmc) 300 300 A'15 A'16 Water A'15 A'16 GRUPPOHERA 12
Slide 20: Gas business
Gas business Economics RAB (M€) Economics (M€) (M€) M€ 2014 Adj. E2019 Cagr A’15 A’16 Ebitda 269.7 308.9 +2.8% EBITDA Ebit 300.6 171.2 175.3 299.5+0.5% 1.07 1.05 Volumes (Kton) A’15 A’16 Volume sold 3,383 3,914 Of which trading 1,242 1,714 Of which to final clients 2,141 2,199 Clients (kunit) 1,327
Slide 21: Electricity business
Electricity business RAB Economics (M€) (M€) A’15 A’16 EBITDA 101.0 135.3 Volumes (Kton) A’15 A’16 0.34 0.36 Volume sold 9,626 9,578 Volume distributed 3,055 2,994 Clients (kunit) 857 880 A'15 A'16 EE Distribution GRUPPOHERA 14