Acea S.p.a. · MIL:ACE
Acea — Q1 2019 Earnings Presentation
15 slides from Acea's earnings presentation, May 15, 2019
Slide 1: Q1 2019 Results
Q1 2019 Results Rome, 15 May 2019
Slide 2: Executive Summary
Acea Group Executive Summary RESULTS FOR Q1 2019 CONFIRM GROWTH TREND ACROSS ALL KEY PERFORMANCE INDICATORS AND DELIVERY OF MAJOR INVESTMENT PROGRAMME: • EBITDA €248m +8% versus Q1 2018 • EBIT €133m +4% versus Q1 2018 • Capex €151m +14% versus Q1 2018 GUIDANCE FOR 2019 CONFIRMED • EBITDA +5/6% versu
Slide 3: Q1 2019 financial highlights
Q1 2019 financial highlights Acea Group Q1 2019 Q1 2018 % change (€m) (a) (b) (a/b) Consolidated revenue 823.3 745.5 +10.4% EBITDA guidance 2019: +5/6% EBITDA 247.9* 229.2 +8.2% versus 2018 (€933m) EBIT 132.8 127.4 +4.2% +10.2% versus Group net profit 75.5** 77.4 -2.5% Q1 2018 after income relating
Slide 4: EBITDA
EBITDA Acea Group 2% 1% EBITDA from 21% Water 7% non-regulated Energy Infrastructure 6% businesses Commercial & Trading EBITDA Q1 2019 Environment 47% Overeas EBITDA from Engineering & Services 37% regulated 79% businesses Average Group EBITDA (€m) workforce Q1 2019 Q1 2018 Change 6,624 5,535 +1,089
Slide 5: EBITDA and quantitative data Water
EBITDA and quantitative data Acea Group Q1 2019 financial highlights EBITDA GROWTH Water Acea ATO2: +€5.7m Acea ATO5: +€2.7m EBITDA main drivers Line-by-line consolidation of Gori: +€17.3m Companies consolidated using equity method: –€0.9m (€m) Q1 2019 Q1 2018 % change Quantitative data Q1 2019 Q1 2
Slide 6: EBITDA and quantitative data Energy Infrastructure
EBITDA and quantitative data Acea Group Q1 2019 financial highlights EBITDA GROWTH Energy Distribution: +€1.1m Infrastructure Generation: +€0.9m EBITDA main drivers Public Lighting: -€1m (€m) Q1 2019 Q1 2018 % change Quantitative data Q1 2019 Q1 2018 (a) (b) (a/b) EBITDA 95.5 94.4 +1.2% Total electr
Slide 7: EBITDA and quantitative data Commercial & Trading
EBITDA and quantitative data Acea Group Q1 2019 financial highlights Commercial & Trading EBITDA Reduced margins on Free market (mass market segment) EBITDA main drivers Reduced margins on Enhanced Protection market (cut in RCV) (€m) Q1 2019 Q1 2018 % change Quantitative data Q1 2019 Q1 2018 (a) (b)
Slide 8: EBITDA and quantitative data Environment
EBITDA and quantitative data Acea Group Q1 2019 financial highlights EBITDA GROWTH Environment Acea Ambiente: +€2.6m EBITDA main drivers Aquaser (sludge recovery): +€0.5m Acque Industriali: -€0.3m (€m) Q1 2019 Q1 2018 % change Quantitative data Q1 2019 Q1 2018 (a) (b) (a/b) EBITDA 16.9 14.1 +19.9% T
Slide 9: EBITDA and quantitative data Overseas, Engineering & Services
EBITDA and quantitative data Acea Group Q1 2019 financial highlights Increased contribution from Positive contribution Engineering Ingegnerie Toscane and TWS Overseas from Aguas de San Pedro & Services Fall in contribution from Acea Elabori Q1 2019 Q1 2018 Q1 2019 Q1 2018 (€m) (€m) (a) (b) (a) (b) E
Slide 10: EBIT and Net profit
EBIT and Net profit Acea Group EBIT (€m) NET PROFIT (€m) 127.4 132.8 77.4 75.5 8.9* 68.5 Q1 2018 Q1 2019 Q1 2018 Q1 2019 TAX RATE 30.4% 29.6% (€m) Q1 2019 Q1 2018 % change Depreciation 95.2 77.5 +22.8% Write-downs 18.6 21.1 -11.8% Provisions 1.4 3.3 -57.6% Total 115.2 101.9 +13.1% * Income relating
Slide 11: Capex
Capex Acea Group Capex growth continues, above all in regulated businesses Capex (€m) Capex 73 64 6 3 5 • Repair and widening • Upgrade and • Capitalisation of • Work on Terni and San of water and sewage expansion of grid agents’ fees (IFRS 15) Vittore WTE plants pipes • Work on Tor di Valle • IT sy
Slide 12: Cash flow
Cash flow Acea Group ( (€m) Q1 2019 Q1 2018 ESTIMATED IMPACT OF IFRS16 IN 2019 (€m) EBITDA 248 229 Change in working capital Net debt 55 (88) (101) Fixed assets 55 CAPEX (151) (133) Lower operating costs 10 FREE CASH FLOW 9 (5) Higher depreciation 9 Net finance income/(costs) (20) (20) Finance costs
Slide 13: Net debt
Acea Group Net debt 31 Mar 2019 31 Dec 2018 31 Mar 2018 Change Change (€m) (a) (b) (c) (a-b) (a-c) Net debt 2,675.7* 2,568.0 2,482.1 107.7 193.6 Medium/long-term 2,979.6 3,341.4 3,540.2 (361.8) (560.6) Short-term (303.9) (773.4) (1,058.1) 469.5 754.2 31 March 2019 NET DEBT/ EQUITY NET DEBT/ EBITDA L
Slide 14: Q&A Session
Acea Group Acea Group Results for Q1 2019 Rome, 15 May 2019 Q&A Session Results for Q1 2019 14
Slide 15: Disclaimer
Disclaimer Acea Group THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT REFLECT THE COMPANY’S MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL AND OPERATIONAL PERFORMANCE OF THE COMPANY AND ITS SUBSIDIARIES. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON ACEA S.