Iren S.p.a. · MIL:IRE

Iren — Q1 2017 Earnings Presentation

14 slides from Iren's earnings presentation, May 11, 2017

  1. Slide 1: 2017 – 1Q Results

    11th May 2017 2017 – 1Q Results

  2. Slide 2: 1Q 2017: Positive start to the year driven by energy sectors

    1Q 2017: Positive start to the year driven by energy sectors. Income statement Ebitda Bridge m€ 1Q '16 1Q '17 Δ Δ% 17 4 5 265 Revenues 886 1,047 161 18.1% 239 Ebitda 239 265 26 10.8% Ebit 154 174 20 13.1% EBITDA 1Q '16 Scenario and Synergies Consolid. EBITDA 1Q '17 Net profit 73 101 28 38.0% Organic

  3. Slide 3: Generation and DH – improved flexibility allowed for further exploitation of scenario

    GENERATION AND DH – improved flexibility allowed for further exploitation of extraordinary positive scenario conditions. m€ 1Q '16 1Q '17 Δ Δ%  The consistent increase in the profitability of the sector is the outcome of the efficiency and effectiveness improvement Revenues 236 341 105 44% process

  4. Slide 4: Market – gas storage management offset the negative price scenario

    MARKET – gas storage management offset the negative price scenario m€ 1Q '16 1Q '17 Δ Δ% The electricity procurement cost trend worsened more than expected (PUN +45%) in particular in the first two months of Revenues 747 810 63 8% the year, preventing the exploitation of hedging opportunities, Ebitd

  5. Slide 5: Networks – improved efficiency drove the growth

    NETWORKS – improved efficiency drove the growth. m€ 1Q '16 1Q '17 Δ Δ% • Energy networks: Achieved synergies, in line with Revenues 192 195 3 2% expectations, more than offset higher price in passive “white certificates”. Ebitda 72 74 2 3% Electricity 16 18 2 9% Gas 18 18 0 -1% • Water networks: The

  6. Slide 6: Waste – better performance both in waste collection and treatment/disposal

    WASTE – better performance both in waste collection and treatment/disposal m€ 1Q '16 1Q '17 Δ Δ%  Waste collection: Higher efficiency in waste collection Revenues 127 135 8 6% systems along with synergies drove the growth in the collection field. Ebitda 31 38 7 22% Ebit 15 24 9 57%  Treatment and

  7. Slide 7: From EBITDA to Net Profit

    From EBITDA to Net Profit. 1Q '16 1Q '17 Δ Δ% EBITDA 239,1 265,0 25,9 10,8% • Higher D&A linked mainly to ATENA and SAP D&A -70,6 -76,4 consolidation. Provisions -14,3 -14,2 EBIT 154,3 174,4 20,1 13.1% • Lower financial charges thanks mainly to lower cost of debt. Financial charges -23,6 -21,5 • Low

  8. Slide 8: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. -35m€ 2,457 11 2,422 28 47 52 (1) (108) (64) NFP 31 .12 .16 Net Profit D&A, NWC Variation Capex Consolidation Dis posals and FV Derivatives NFP 31 .03 .17 provisions and dividends other received  The robust operating cash-flow generated in the quarter led to a 35m€ net deb

  9. Slide 9: Interest rate and debt structure

    Interest rate and debt structure. Gross debt interest rate  89% of gross debt at fixed interest rate.  Average long-term debt duration of about 4.9 years.  Further slight reduction in cost of debt (3.3% vs. 3.4% in FY 2016) Debt structure  IREN’s debt is formed of:  46% bonds  32% EIB loans 

  10. Slide 10: Closing remarks

    Closing remarks • 2 years of continuous improvement in efficiency, effectiveness and agility has led to positive results in all the sectors, even without M&A transactions. • A sound integrated management in the energy value chain and a clear accountabilities attribution contributed to maximize the r

  11. Slide 11: Annexes

    ren Annexes Pag. 11

  12. Slide 12: Market Scenario

    Market Scenario. 1Q '16 1Q '17 Δ% Gas Demand (bcm) 24 26 9% TTF €/000 scm 148 200 35% PSV €/000 scm 169 217 29% Energy Demand (Twh) 78 79 2% PUN (€/Mwh) 39.6 57.4 45% CO2 €/Ton 5.7 5.4 -5% Green Cert. Hydro (€/Mwh) 100.1 107.3 7% Pag. 12

  13. Slide 13: Balance Sheet

    Balance Sheet. 1Q '17 FY '16 Net fixed assets 5,242 5,220 Net Working Capital 223 171 Funds -567 -562 Other assets and liabilities -86 -84 Net invested capital 4,812 4,745 Group Sharholders' equity 2,390 2,288 Net Financial Position 2,422 2,457 Total Funds 4,812 4,745 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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