Acea S.p.A. · MIL:ACE
Acea — FY2016 Earnings Presentation
14 slides from Acea's earnings presentation, Mar 13, 2017
Slide 1: 2016 Results
2016 Results Rome, 13 March 2017
Slide 2: Acea Group 2016 Results
Acea Group 2016 Results 2
Slide 3: Low risk profile
Low risk profile From unregulated 2016 data businesses 20% 2016 From regulated EBITDA businesses €896m 80% 6% 14% 40% of Group 40% of Group of Group of Group EBITDA EBITDA EBITDA EBITDA ENVIRONMENT ENERGY WATER GRIDS One of the main Italian One of the leading operators in Number 6 Italian operator L
Slide 4: Long-term shareholder value through returns and growth
Long-term shareholder value through returns and growth EBITDA CAGR +9.9% Net profit CAGR +22.7% (€m) 896.3 (€m) 717.7 732.0 675.4 262.3 142.0 162.5 175.0 2013 2014 2015 2016 2013 2014 2015 2016 Net Debt/EBITDA CAPEX (€m) 2013 2014 2015 2016 3.3x 2.9x 2.7x 2.4x 530.7 DPS CAGR +13.9 % (€) 428.9 318.5
Slide 5: Beating expectations for 2016
Beating expectations for 2016 2016 financial highlights (€m) 2015 2016* Change % 2016 results: above expectations Consolidated revenue 2,917.3 2,832.4 -2.9% EBITDA 732.0 896.3** +22.4% Strong operating performance EBIT 386.5 525.9 +36.1% Net profit/(loss) 181.5 272.5 +50.1% Cost efficiencies and sim
Slide 6: EBITDA target exceeded in 2016
EBITDA target exceeded in 2016 (€m) 2015 Ebitda 2016 Ebitda +22.4% 732.0 100.6 896.3 Regulatory 44.2 111.5 accounting 22.1 (2.4) (0.2) 356.3 255.7 355.0 310.8 107.9 130.0 57.4 57.2 0.2 -2.2 Corporate Environment Energy Water Grids ENVIRONMENT ENERGY WATER GRIDS -0.3% Main drivers: +20.5% Main driver
Slide 7: Acea is ahead in digital transformation
Acea is ahead in digital transformation to improve competitiveness, customer loyalty and operational efficiency Project Acea 2.0 Increased productivity Improved quality of service Improved corporate image Greater internal and external control and transparency Increased safety for employees
Slide 8: EBITDA and Key quantitative data Environment
EBITDA and Key quantitative data 2016 financial highlights Entry into service of Line 1 of San Vittore plant in Oct 2016 Environment Contribution of Orvieto waste treatment plant EBITDA main drivers Recognition in 2015 of insurance proceeds for the fire at the Paliano plant (€3.2m) (€m) 2015 2016 %
Slide 9: EBITDA and Key quantitative data Energy
EBITDA and Key quantitative data 2016 financial highlights Energy Electricity sales: +€24.3m margin increase EBITDA main drivers Electricity production: -€2.2m (€m) 2015 2016 % change Key quantitative data 2015 2016 EBITDA 107.9 130.0 +20.5% Total Electricity production (GWh) 470 410 Production 34.2
Slide 10: EBITDA and Key quantitative data Water
EBITDA and Key quantitative data 2016 financial highlights Acea ATO2: tariff increase +€43m (quality reward €23m) Efficiency Water Growth at companies consolidated using the equity method +€0.8m EBITDA main drivers Overseas water operations: +€1.4m (€m) 2015 2016 % change Key quantitative data 2015
Slide 11: EBITDA and Key quantitative data Grids Corporate
EBITDA and Key quantitative data 2016 financial highlights Operational efficiency and new technologies Grids Impact of accounting for Resolution 654/2015: €111.5m EBITDA main drivers Impact of fifth regulatory cycle (€m) 2015 2016 % change Key quantitative data 2015 2016 EBITDA 255.7 356.3 +39.3% To
Slide 12: Cash flow
Cash flow CASH FLOW ANALYSIS (€m) 2015 2016 EBITDA 732 896 Change in net working capital 98 (16) Investment (429) (531) Free Cash Flow 401 350 Net finance income/(costs) (90) (110) Income tax expense (115) (144) Dividends (96) (107) Other (27) (106) Total Cash Flow 73 (117) EBITDA Change in Investme
Slide 13: Strong financial structure
Strong financial structure 2016 financial highlights 31 Dec 2015 30 Sept 2016 31 Dec 2016 Change Change (€m) (a) (b) (c) (c-a) (c-b) NET DEBT 2,010.1 2,138.7 2,126.9 116.8 (11.8) Medium/Long-term 2,657.0 2,626.7 2,769.4 112.4 142.7 Short-term (646.9) (488.0) (642.5) 4.4 (154.5) NET DEBT/ EQUITY NET
Slide 14: Disclaimer
Disclaimer THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT REFLECT THE COMPANY’S MANAGEMENT’S CURRENT VIEWS WHIT RESPECT TO FUTURE EVENTS AND FINANCIAL AND OPERATIONAL PERFORMANCE OF THE COMPANY AND ITS SUBSIDIARIES. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON ACEA S.P.A.’S CURR