Iren S.p.a. · MIL:IRE

Iren — 9M 2012 Earnings Presentation

14 slides from Iren's earnings presentation, Nov 15, 2012

  1. Slide 1: 2012 – 9M Results

    15th of November 2012 2012 – 9M Results

  2. Slide 2: 9M 2012 – Good operating results and stable debt

    9M 2012 – Good operating results and stable debt. EURm 9M ‘11 9M ‘12 ∆ ∆% REVENUES 2,360 3,146 +785.9 +33.3% EBITDA 407 415 +7.6 +1,9% EBIT 215 206 -8.1 -3.8% NET PROFIT 95 68 -27.3 -28.7% CAPEX 324 207 -117.0 -36.1% NFP 2,653* 2,617 -35.6 -1.3% Revenues up by 33.3%: The strong increase in revenues

  3. Slide 3: EBITDA Bridge: Increase in EBITDA driven by Generation and DH

    EBITDA BRIDGE: Increase in EBITDA driven by Generation and DH. EBITDA BRIDGE 407 6 2 6 2 415 (4) (4) Unregulated. Act. +8€m EBITDA bridge - Key Elements: Positive performance in unregulated activities thanks mainly to higher hydroelectric volumes (in countertrend compared to national production) sol

  4. Slide 4: Generation of Electricity and Heat: Higher volumes and a positive one-off

    GENERATION OF ELECTR. AND HEAT: Higher volumes and a positive one-off more than offset the squeeze in margins in cogen. 9M ’12 vs. 9M ’11 Higher volumes and profitability in Hydro. IREN’s hydro 9M '11 9M '12 Δ€m Δ% production stood at 824 Gwh (+7% IREN vs -16% at Revenues 485 650 165 34% national le

  5. Slide 5: Market: Improvement in gas sector offset weaker electricity market

    MARKET: Improvement in gas sector offset the weaker performance in electricity market. 9M ’12 vs. 9M ’11 Gas and Heat Sales: The positive trend reported in 1H 9M '11 9M '12 Δ€m Δ% 2012 continues thanks both to an optimized procurement, Revenues 2,030 2,981 951 47% portfolio which exploited market li

  6. Slide 6: Energy Infrastructure: positive performance, especially in DH networks

    ENERGY INFR.: positive performance, especially in DH networks. 9M ’12 vs. 9M ’11 Gas networks: Positive results based both on higher 9M '11 9M '12 Δ€m Δ% revenues and synergies. Revenues 311 321 10 3% Electricity networks: Profitability was affected mainly by EBITDA 158 164 6 3% “White certificates”

  7. Slide 7: Water: stable performance in spite of growth in electricity costs

    WATER: stable performance in spite of growth in electricity costs. 9M ’12 vs. 9M ’11 Stable Revenues: Tariff increase in all the ATOs more than 9M '11 9M '12 Δ€m Δ% offset the change in consolidation perimeter (-4€m). Revenues 323 320 (3) -1% EBITDA 85 87 2 2% Slight increase in EBITDA thanks to tar

  8. Slide 8: Waste: Tariff increase did not completely offset lower volumes

    WASTE: Tariff increase did not completely offset lower electricity and GC volumes. 9M ’12 vs. 9M ’11 Slight decrease in revenues: net of the change in 9M '11 9M '12 Δ€m Δ% consolidation perimeter (deconsolidation of Undis Servizi) Revenues 161 157 (4) -2% revenues would have been stable. EBITDA 35 3

  9. Slide 9: From EBIT to Net Profit

    From EBIT to Net Profit 9M ‘11 9M ‘12 ∆% EBIT 214.6 206.4 -3.8% • Increase in financial charges Financial charges (48.9) (71.4) caused by higher interest rate and debt. Companies consolidated with E.M. 13.6 15.0 • Write-down of Sinergie Italiane Adj. in participations - (10.2) stake. EBT 179.3 139.8

  10. Slide 10: Cash-Flow & Debt Structure

    CASH-FLOW & DEBT STRUCTURE NFP Bridge 30.09.2012 Interest rate* and Debt Structure** 2,653 19 2,617 222 22 (75) (22) 34% (163) 39% (39) 27% Fixed Variable Swap  Stable NFP compared both to FY 2011 and to 1H 2012, thanks mainly to a remarkable improvement in NWC management and by the cut in capex, i

  11. Slide 11: Annexes

    ren Annexes 11

  12. Slide 12: Market Scenario

    Market Scenario 9M ‘11 9M ‘12 Δ% • In the first 9M 2012 Brent average price Brent USD / bbl 112.0 112.2 - stood at 112.2 $/bbl, substantially stable compared to first 9M 2012. USD / € 1.41 1.28 -9% • USD/€ exchange rate was 1.20, dropped by Brent € / bbl 79.6 87.6 10% 9% YoY. • Gas demand fell by 3%

  13. Slide 13: Balance Sheet

    Balance Sheet €m 30.09.2012 31.12.2011 Net fixed assets 4,667 4,653 Net Working Capital 249 288 Funds (400) (417) Other assets and liabilities (12) (27) Net invested Capital 4,504 4,497 Net Financial Position 2,617 2,653 Group shareholders’ equity 1,887 1,844 Total Funds 4,504 4,497

  14. Slide 14: 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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