Acea S.p.a. · MIL:ACE
Acea — Debt Investor Presentation (January 2018)
25 slides from Acea's debt investor presentation, January 2018
Slide 1: Fixed Income Investor Presentation
Fixed Income Investor Presentation January 2018 1
Slide 2: Disclaimer
ACEA Group Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWF
Slide 3: Agenda
ACEA Group Agenda THE ACEA GROUP TODAY MARKET SCENARIO AND TRENDS FINANCIAL PERFORMANCE ACEA HIGHLIGHTS & TRANSACTION SUMMARY APPENDIX 3
Slide 4: With us today
ACEA Group With us today Giuseppe Gola CFO giuseppe.gola@aceaspa.it Alessandro Catalani Head of Finance alessandro.catalani@aceaspa.it Elvira Angrisani Head of Investor Relations elvira.angrisani@aceaspa.it 4
Slide 5: The Acea Group Today
ACEA Group THE ACEA GROUP TODAY 5
Slide 6: A market leading multiutility
ACEA Group THE ACEA GROUP TODAY A market LEADING multiutility FOOTPRINT EBITDA Breakdown (1) MARKET POSITION IN ITALY 2017 2% 7% 2% WATER 10% No. 1 • 9m customers 41% • RAB €1.3bn 38% ELECTRICITY DISTRIBUTION No. 2 • 1.6m PODs Water Energy Infrastructure • RAB €1.9bn Commercial & Trading Environment
Slide 7: Operating segments
ACEA Group THE ACEA GROUP TODAY Operating segments WATER ENVIRONMENT • Integrated Water • Sludge management Service in Italy • Waste treatment, recovery, recycling and disposal ENERGY INFRASTRUCTURE • Electricity Distribution OVERSEAS • Public Lighting • Overseas water business • Electricity Generat
Slide 8: Market Scenario and Trends
ACEA Group MARKET SCENARIO AND TRENDS 8
Slide 9: Segment trends expected in the coming years in the Group's core businesses
ACEA Group MARKET SCENARIO AND TRENDS SEGMENT TRENDS expected in the coming years in the Group’s core businesses • Strong regulatory and government drive to ensure WATER - greater industrial development - new investment to cut gap in infrastructure and plant and boost network resilience • Consolidat
Slide 10: The Group's new Strategic Pillars
ACEA Group MARKET SCENARIO AND TRENDS The Group’s new Strategic PILLARS Technology, Operational Growth Local focus Innovation Efficiency and Quality • Infrastructure • Sustainable • Research & innovation • Capex discipline development development applied to industrial • Operational processes improve
Slide 11: Sustainability plan
ACEA Group MARKET SCENARIO AND TRENDS SUSTAINABILITY plan Cuts in CO2 >200 (Reduced losses, Purchase of Green Energy, ktons Recovery of Biogas) United Nations Sustainable Development Goals (SDGs) >15 Reduction in Water Leaks pp Green Energy 500 for internal use within the Group GWh Reduction in Risk
Slide 12: Competitive Landscape: Acea vs. Peers
ACEA Group MARKET SCENARIO AND TRENDS Competitive Landscape: Acea vs. Peers EBITDA Geo Average Average Rating Business Issuer Regulated presence Cost of Debt Maturity (M/S/F) (FY 2016) (FY 2016) (FY 2016) (FY 2016) (FY 2016) 6% 20% 40% Baa2 (stb) / 40% Northern/ NR / Central/ 2.94% ~7yrs 80% BBB+ (s
Slide 13: Financial Performance
ACEA Group FINANCIAL PERFORMANCE 13
Slide 14: Financial Highlights
ACEA Group FINANCIAL PERFORMANCE Financial Highlights FY 2015 FY 2016 % change H1 2016 H1 2017 % change (€m) Adjusted (1) Adjusted (1) a b b/a c d d/c Consolidated revenue 2,917.3 2,832.4 -2.9% 1,323.4 1,372.5 +3.7% EBITDA 732.0 896.3 +22.4% 380.4 414.1 +8.9% EBIT 386.5 525.9 +36.1% 210.8 213.9 +1.5
Slide 15: EBITDA and Key quantitative data Water
ACEA Group FINANCIAL PERFORMANCE EBITDA and Key quantitative data H1 2017 financial highlights Acea ATO2: +€18.9m (quality award €14.3m) Acea ATO5: +€0.8m Water Change in scope of consolidation EBITDA main drivers Companies consolidated using the equity method (-€4.3m) (€m) H1 H1 % change Key quanti
Slide 16: EBITDA and Key quantitative data Energy Infrastructure
ACEA Group FINANCIAL PERFORMANCE EBITDA and Key quantitative data H1 2017 financial highlights Energy Generation +€4.4m Distribution (-€43.8m due to Regulatory Accounting in H1 2016) Infrastructure EBITDA main drivers Public Lighting (+€1.1m) (€m) H1 H1 H1 % change % change Key quantitative data H1
Slide 17: EBITDA and Key quantitative data Commercial and Trading
ACEA Group FINANCIAL PERFORMANCE EBITDA and Key quantitative data H1 2017 financial highlights Recognition, in Q2 2016, of additional revenue of approximately €10m linked to Commercial and impact of the contract, entered into in March 2016, for the commercialisation of smart meters. Trading EBITDA m
Slide 18: EBITDA and Key quantitative data Environment
ACEA Group FINANCIAL PERFORMANCE EBITDA and Key quantitative data H1 2017 financial highlights Environment Greater quantity of electricity sold by the San Vittore plant EBITDA main drivers Acque Industriali (change in scope of consolidation): +€0.5m (€m) H1 H1 % change Dati quantitativi H1 H1 2016 2
Slide 19: EBIT and Net Profit
ACEA Group FINANCIAL PERFORMANCE EBIT and Net Profit EBIT (€ m) Net Profit (€ m) (1) 525.9 262.3 Regulatory 111.5 Regulatory Accounting (-75.1) Accounting 51.8 Repurchase of a Adjusted Portion of Bonds 274.1 EBIT EBIT Issued (+23.3 386.5 after tax) Regulatory Accounting Restored Ownership of a Prope
Slide 20: Cash flow
ACEA Group FINANCIAL PERFORMANCE Cash flow CASH FLOW ANALYSIS (€m) H1 2016 H1 2017 EBITDA 444 414 Change in net working capital (144) (257) Investment (221) (252) Free Cash Flow 79 (95) Net finance income/(costs) (42) (31) Income tax expense (78) (54) Dividends (107) (132) Other 25 38 Total Cash Flo
Slide 21: Debt Structure
ACEA Group FINANCIAL PERFORMANCE Debt Structure Maturity Profile 486 115 489 Total (M€) 87 80 72 666 228 567 69 37 37 28 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 (€m) 30 June 2017 NET DEBT 2,401.4 Medium/Long-term 2,831.8 Short-term (430.4) Adjusted NET DEBT(1) 2,377.4 Debt s
Slide 22: Acea Highlights & Transaction Summary
ACEA Group ACEA HIGHLIGHTS & TRANSACTION SUMMARY 22
Slide 23: ACEA Highlights
ACEA Group ACEA HIGHLIGHTS & TRANSACTION SUMMARY ACEA Highlights Business model focused on regulated activities Well diversified portfolio of regulated activities, which accounted for approximately 80% of the Group’s FY 2016 EBITDA (mainly Water and Grids activities) #1 Player in the Italian water s
Slide 24: Transaction Overview
ACEA Group ACEA HIGHLIGHTS & TRANSACTION SUMMARY Transaction Overview Issuer Acea S.p.A. Rating Baa2 (Moody’s, stable)/BBB+ (Fitch, stable) Format Senior Unsecured Notes Timing Following the roadshow, subject to market conditions Size & Maturity Benchmark 9- or 10-year FXD and/or potential €300mn (e
Slide 25: Qceec
Qceec