Iren S.p.a. · MIL:IRE

Iren — H1 2019 Earnings Presentation

14 slides from Iren's earnings presentation, Jul 31, 2019

  1. Slide 1: 2019 1H Results

    2019 1H RESULTS 31st July 2019

  2. Slide 2: 1H 2019 Double digit growth led by strong operational performances

    1H 2019 Double digit growth led by strong operational performances excluding the last year non recurrent contribution from TEE and GC expiry KPIs EBITDA BRIDGE E B IT DA 1H '18 -5.5% m€ 1H '19 Δ Δ% NE T W ORKS restated +12.7% Revenues 1,937 2,238 301 15.6% 506 42 478 WASTE Ebitda 506 478 -28 -5.5% 1

  3. Slide 3: Networks: Growth driven by investments, synergies and consolidation

    NETWORKS Growth driven by investments, synergies and consolidation m€ 1H '18 1H '19 Δ Δ% E B IT DA • Energy and water networks: growth led by higher revenues (thanks to Revenues 443 482 39 9% NE T W ORKS the RAB increase), synergies and the consolidation of ACAM. Ebitda 160 172 12 8% • Increase in C

  4. Slide 4: Waste: Growth led by the disposal plants saturation and consolidation

    WASTE Growth led by the disposal plants saturation and consolidation • The contribution of organic growth is mainly related to disposal plants m€ 1H '18 1H '19 Δ Δ% E B IT DA saturation (including REI landfill contribution), higher prices and the Revenues 294 352 58 20% increase in collection margin

  5. Slide 5: Energy: Growth led by supportive scenario and energy efficiency contribution

    ENERGY Growth led by supportive scenario and energy efficiency contribution, net of energy certificates impact E B IT DA m€ 1H '18 1H '19 Δ Δ% • Generation sector is impacted by higher volumes compared to last year and positive spark spread. The result is affected by the absence of white Revenues 64

  6. Slide 6: Market: The margins reported in 1Q 2019 have been partially recovered

    MARKET The margins reported in 1Q 2019 have been partially recovered E B IT DA m€ 1H '18 1H '19 Δ Δ% • The results are affected by a slight improvement in margins and the NE T W ORKS absence of positive elements reported in 2018 equal to 8m€. Revenues 1,241 1,512 271 22% Ebitda 63 55 -8 -13% • Gas s

  7. Slide 7: From EBITDA to Net Profit

    1H 2019 From EBITDA to Net Profit 1H '18 1H '19 Δ Δ% E B IT DA EBITDA 505.8 478.1 -27.7 -5.5% • Increase in D&A related to higher capex, NE T W ORKS D&A and others -174.4 -203.6 consolidation process (ACAM and San Germano) and IFRS 16 application Provisions to bad debt -16.4 -16.8 WASTE EBIT 315.0 2

  8. Slide 8: Cash-flow and NFP Bridge

    1H 2019 Cash-flow and NFP Bridge +117m€ E B IT DA +12m€ 105 2,570 NE T W ORKS 2,453 56 2,465 8 34 WASTE 150 (7) 197 E NE R G Y (164) M A R KET (200) (62) E B IT NFP 31.12.18 Net Profit D&A, NWC Capex Dividends Disposal and Consolidation Treasury Derivatives IFRS 16 NFP 30.06.19 C A S HF LOW provisio

  9. Slide 9: Interest rate and debt structure

    1H 2019 Interest rate and debt structure GROSS DEBT INTEREST RATE E B IT DA  89% of gross debt at fixed interest rate and 11% of gross 11% NE T W ORKS debt at variable interest rate. 17% WASTE  Average long-term debt duration of about 72% 5.3 years (5.5 years in 1H 2018). E NE R G Y Fixed Swap Var

  10. Slide 10: Closing remarks

    1H 2019 Closing remarks E B IT DA Organic growth, consolidation and synergies keep on contributing in line with our business plan assumptions, allowing for a further strong profitability growth NE T W ORKS WASTE We are also carrying out the investments needed for enhancing organization and processes

  11. Slide 11: Annexes

    Annexes

  12. Slide 12: Scenario

    Scenario 1H '18 1H ’19 Δ% a Gas Demand (bcm) 38.5 40.1 4.2% n TTF €/000 scm 223 166 -25.4% n PSV €/000 scm 237 198 -16.4% Energy Demand (Twh) 158.6 157.3 -0.8% e PUN (€/Mwh) 53.8 55.1 2.5% x CO2 €/Ton 12.3 23.8 93.9% e Green Cert. Hydro (€/Mwh) 99.0 92.1 -7.0% TEE (€/TEE) 257.6 260 0.9% s 2019 1H RE

  13. Slide 13: Balance Sheet

    Balance Sheet FY '18 1H ’19 a Net fixed assets 5,786 5,919 n Net Working Capital 132 70 Funds -621 -610 n Other assets and liabilities -282 -271 e Net invested capital 5,015 5,108 x Group Shareholders' equity 2,562 2,538 e Net Financial Position 2,453 2,570 s Total Funds 5,015 5,108 2019 1H RESULTS

  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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