Edison Spa · MIL:EDNR

Edison Spa — Q1 2017 Earnings Presentation

14 slides from Edison Spa's earnings presentation, May 2017

  1. Slide 1: First Quarter 2017 Results

    FIRST QUARTER 2017 RESULTS Milan, May 2017 Full Year 2016 results | Feb.’17 | 1

  2. Slide 2: Business Environment

    BUSINESS ENVIRONMENT € bing EDISON

  3. Slide 3: Electric Power Availability Mix in Italy

    ELECTRIC POWER AVAILABILITY MIX IN ITALY +0.6% 78,5 79,0 (28.8%) 12,9 9,2 +10.9% 6,1 Pumping 5,5 5,3 5,9 (9.4%) Net import (4.7%) 7,5 7,9 Other renewable production Wind production National Generation Hydroelectric production +9.8% 51,5 Thermoelectric production 46,9 -0,6 = -0,6 1Q2016 1Q2017 Nation

  4. Slide 4: Gas Demand in Italy

    GAS DEMAND IN ITALY +8.6% 25,6 23,6 0,4 0,4 +18.0% 6,7 5,7 System uses and losses Thermoelectric users 4,5 +6.9% 4,8 Industrial users Services and residential users 13,0 5.2% 13,7 1Q2016 1Q2017 Gas demand increased by 8.6% thanks to: - higher gas powered generation - cold temperatures especially in

  5. Slide 5: Market Reference Scenario

    MARKET REFERENCE SCENARIO Avg 1Q2017: 54.7 $/bbl 51.4 €/bbl BRENT Avg 1Q2016: 35.1 $/bbl 31.9 €/bbl PSV Avg 1Q2017: 21.6 Avg 1Q2016: 15.3 Avg FY2016: 16.5 Avg FY2016: 45.1 $/bbl (€c/scm) 40.8 €/bbl Avg 1Q2017: 6.6 PUN TWA Avg 1Q2017: 57.4 Avg 1Q2016: 39.6 CSS1 Avg 1Q2016: 1.3 Avg FY2016: 2.7 (€/MWh)

  6. Slide 6: First Quarter 2017 Results

    FIRST QUARTER 2017 RESULTS • Electric power and hydrocarbons sources and uses • Consolidated financial highlights and capital expenditures • Operating performance • Net financial debt and cash flow | 6

  7. Slide 7: Electric Power Volumes in Italy

    ELECTRIC POWER VOLUMES IN ITALY SOURCES USES (TWh) (TWh) 23,1 (12.4%) 23,1 (12.4%) 0,4 20,2 20,2 0,3 (12.2%) 3,0 (14.3%) 0,3 3,9 +19.5% 0,3 2,6 4,7 20,1 (12.2%) 18,5 (19.6%) 17,6 14,9 1Q2016 1Q2017 1Q2016 1Q2017 Wind & other renewable production Other sales (b) (wholesalers, IPEX, etc.) End customer

  8. Slide 8: Hydrocarbons Volumes: Gas Portfolio in Italy

    HYDROCARBONS VOLUMES GAS PORTFOLIO IN ITALY SOURCES USES (bcm) (bcm) +7.2% 6,0 +7.2% 6,0 5,6 5,6 0,2 0,3 (15.7%) 1,8 +1.4% 1,6 1,6 1,5 +8.0% 1,8 2,1 +20.4% +8.8% 3,6 3,9 1,0 +10.5% 1,1 1,3 (6.8%) 1,2 +2.7% 0,1 0,1 1Q2016 1Q2017 1Q2016 1Q2017 Production (a) Imports (pipeline + LNG) Residential uses I

  9. Slide 9: Hydrocarbons Volumes: E&P Operations

    HYDROCARBONS VOLUMES E&P OPERATIONS GAS PRODUCTION OIL PRODUCTION (mcm) (kbbl) 486 (8.0%) 1.148 (17.5%) 447 946 111 +2.7% 114 (16.8%) 561 467 375 (11.2%) 333 (18.3%) 587 479 1Q2016 1Q2017 1Q2016 1Q2017 International production (a) Domestic production (b) International production (a) Domestic product

  10. Slide 10: Group Consolidated Highlights

    GROUP CONSOLIDATED HIGHLIGHTS (€ mln) FY2016 1Q2016 1Q2017a  Net capex net of financial investmentsb) 11.034 Sales revenues 3.026 2.798 (7,5%) 653 EBITDA 172 229 33,1% 1 95 (260) EBIT (34) 8 nm 107 30 (347) Profit (loss) before taxes (67) 4 nm 25 (389) Group net income (loss) (76) (19) 75,0% 379 Ne

  11. Slide 11: Operating Performance Breakdown

    OPERATING PERFORMANCE BREAKDOWN Electric Power Hydrocarbons Corporate and other Total Edison Group (€ mln) 1Q2016 1Q2017 ∆ 1Q2016 1Q2017 ∆ 1Q2016 1Q2017 ∆ 1Q2016 1Q2017 ∆ Sales revenues 1.361 1.387 1,9% 1.836 1.636 (10,9%) (171) (225) (31,6%) 3.026 2.798 (7,5%) Adjusted EBITDA (*) 43 68 58,1% 147 18

  12. Slide 12: From Consolidated EBITDA to Net Result

    FROM CONSOLIDATED EBITDA TO NET RESULT (€ mln) 1Q2016 1Q2017  EBITDA 172 229 57 Depreciation, amortization and writedowns (114) (122) (8) - Group loss of €-19mln from €-76mln Of which: exploration costs (25) (30) (5) as a result of the improvement in Net change in fair value of commodity derivative

  13. Slide 13: Net Financial Debt and Cash Flow

    NET FINANCIAL DEBT AND CASH FLOW (€ mln) (1062) 128 FURTHER (934) REDUCTION OF NET FINANCIAL DEBT BELOW € 1BLN Dec 31, 2016 Mar 31, 2017 +229 +4 -11 -2 -106 POSITIVE CASH INFLOW +14 +128 GENERATED BY HIGH EBITDA EBITDA Changes in Taxes Net financial Net investments Other Net cash flow of Working Cap

  14. Slide 14: Statement

    STATEMENT As required by Article 154-bis, Section 2, of the Uniform Finance Law (Legislative Decree No 58/1998), Didier Calvez and Roberto Buccelli, in their capacity as “Dirigenti preposti alla redazione dei documenti contabili societari” of Edison S.p.A., attest that the accounting information con

Edison — Q1 2017 Earnings Presentation on 6ix