Iren S.p.a. · MIL:IRE

Iren — H1 2018 Earnings Presentation

14 slides from Iren's earnings presentation, Aug 2, 2018

  1. Slide 1: 2018 – 1H Results

    2nd August 2018 2018 – 1H Results

  2. Slide 2: 1H 2018: Strong results driven by further achievements along the strategic pillars

    1H 2018: Strong results driven by further achievements along the strategic pillars and by a non-recurring sale of white certificates KPIs Ebitda Bridge m€ 1H '17 1H '18 Δ Δ% 13 506 54 9 10 442 Revenues 1,814 1,937 123 6.8% (22) Ebitda 442 506 64 14.4% Ebit 257 315 58 22.7% Net profit 145 187 42 29.2

  3. Slide 3: Generation and DH – Net of the extraordinary recognition of white certificates, results in line

    GENERATION AND DH – Net of the extraordinary recognition of white certificates, results in line with last year m€ 1H '17 1H '18 Δ Δ% • Sale of approx. 60m€ of white certificates mainly linked to previous years. Revenues 555 620 65 12% • The shrink in thermoelectric/cogeneration margins, due to highe

  4. Slide 4: Market – Negative commodity scenario compared to last year

    MARKET – Negative commodity scenario compared to last year.  The main elements driving the performance are: m€ 1H '17 1H '18 Δ Δ%  Electricity sale sector: higher PUN price, which squeezed margins, was offset by previous years Revenues 1,248 1,241 -7 -1% balances linked to commodity transport char

  5. Slide 5: Networks – Growth driven by investments, synergies and consolidation

    NETWORKS – Growth driven by investments, synergies and consolidation (ACAM since April 2018) m€ 1H '17 1H '18 Δ Δ% • Energy and water networks: Higher revenues (thanks to the growth in RAB), synergies and the consolidation of Revenues 421 443 22 5% ACAM were partially offset by minor non-recurring E

  6. Slide 6: Waste – Waste disposal sector driving the growth

    WASTE – Waste disposal sector driving the growth. m€ 1H '17 1H '18 Δ Δ%  The increase in EBITDA is mainly linked to IREN’s Revenues 270 294 24 9% disposal plants (in particular TRM WTE and REI landfill) which took advantage also from a supportive commodity Ebitda 71 73 2 3% scenario. In addition to

  7. Slide 7: From EBITDA to Net Profit

    From EBITDA to Net Profit. 1H '17 1H '18 Δ Δ% EBITDA 442.3 505.8 63.5 14.4% • Higher D&A due to changes in scope of D&A -155.5 -168.9 consolidation (and higher fixed assets offset by non-recurring lower provision linked to IFRS9) Provisions -29.9 -21.6 EBIT 256.9 315.3 58.4 22.7% • Lower financial c

  8. Slide 8: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. -106m€ 162 2,428 2,372 113 2,266 164 (20) (199) (148) (16) NFP 31 .12 .17 Net Profit D&A, NWC Variation Capex Div idends Dis posals and NFP adj. Consolidation NFP 30 .06 .18 provisions other and other  Net of consolidation effect, debt would decrease by 106m€, benefitting

  9. Slide 9: Interest rate and debt structure

    Interest rate and debt structure. Gross debt interest rate  >90% of gross debt at fixed interest rate. 9%  Average long-term debt duration of about 91% 5.5 years Fixed Variable  Reduction in cost of debt (2.9% vs. 3.3% in 1H 2017) Debt structure  IREN’s debt is formed of:  56% Bonds 44% 56%  3

  10. Slide 10: Closing remarks

    Closing remarks Iren delivered organic growth and synergies in line with the business plan objectives; The Acam consolidation has started on April 1st, confirming the leading role of Iren in its reference area and the effectiveness of the Group in integrating companies; These elements combined with

  11. Slide 11: Annexes

    ren Annexes Pag. 11

  12. Slide 12: Scenario

    Scenario. 1H '17 1H '18 Δ% Gas Demand (bcm) 39.2 38.5 -1.8% TTF €/000 scm 180 223 23.5% PSV €/000 scm 204 237 16.3% Energy Demand (Twh) 152.4 156.4 2.6% PUN (€/Mwh) 51.2 53.8 5.2% CO2 €/Ton 5.0 12.3 147.4% Green Cert. Hydro (€/Mwh) 107.3 99.0 -7.8% Pag. 12

  13. Slide 13: Balance Sheet

    Balance Sheet. 1H '18 FY '17 Net fixed assets 5,669 5,412 Net Working Capital 166 182 Funds -622 -618 Other assets and liabilities -286 -105 Net invested capital 4,927 4,871 Group Shareholders' equity 2,499 2,499 Net Financial Position 2,428 2,372 Total Funds 4,927 4,871 Pag. 13

  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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