Slide 1: Company presentation
Company presentation Milan, 20 July 2010
Slide 2: Contents
Contents Business Overview ............................................................................................ Pag. 3 Gas distribution ................................................................................................. Pag. 22 Gas sales ........................................
Slide 3: Contents: Business Overview
Contents Business Overview Group profile ..................................................................................................... Pag. 4 Competitive environment: the gas chain in Italy ................................................ Pag. 5 Business activities and main financial data ..
Slide 4: Group profile
Group profile Ascopiave Group operates mainly in the gas sector Its principal business activities are the distribution and sale of gas to end customers in Northern Italy In terms of both customer base and quantities of gas sold Ascopiave is currently one of the leading national players in the gas se
Slide 5: Competitive environment: the gas chain in Italy
Competitive environment: the gas chain in Italy Transport Distribution Regulated activities Import / via national Storage via local Sales production pipelines pipelines Liberalized activities Natural gas production Import of natural gas via Import of liquefied (in Italy or abroad) international pipe
Slide 6: Business activities and main financial data
Business activities and main financial data Primary business activities Secondary business activities Gas sales Gas Heating Gas Electricity Photovoltaic to end trading and services Cogeneration sales power plants distribution management customers wholesales 2009 MAIN FINANCIAL DATA* 41,088 Distribut
Slide 7: Primary business activities (1)
Primary business activities (1) Gas distribution Gas distribution entails transporting gas ASCOPIAVE GROUP GAS DISTRIBUTION through local gas pipelines networks, 2009 KEY FIGURES generally at medium-low pressure, for delivery to end customers. No. of inhabitants potentially served (mln) >1 The activ
Slide 8: Primary business activities (2)
Primary business activities (2) Gas sales to end customers and gas trading Gas sale is an activity that involves the ASCOPIAVE GROUP GAS SALES purchase of gas from producers and 2009 KEY FIGURES* importers operating in Italy, on the basis of freely-negotiated contracts, for the No. of gas sale clien
Slide 9: Secondary business activities (1)
Secondary business activities (1) Other activities Ascopiave provides other services, such as heating services management, cogeneration, sale of electricity and production of electricity by photovoltaic power plants. Heating services management: Heating division provide to clients, who are principal
Slide 10: Secondary business activities (2)
Secondary business activities (2) Other activities Electricity sales: The liberalisation of the electricity market gave to Ascopiave Group the opportunity to add the supply of electric energy to its traditional gas supply, offering a type of “dual fuel” option for a unified solution to its customers
Slide 11: Ascopiave Group structure as of 31st March 2010
Ascopiave Group structure as of 31st March 2010 Global Energy Group 89% 100% 100% 51% 17% 100% Ascoenergy Group 49% 100% 48.999% 100% 27.601% 50% 100% 50% 100% 70% ACTIVITIES Gas distribution, 51% Gas sales and heating Gas shipping electricity sales management Gas Photovoltaic 100% Gas sales distrib
Slide 12: Ascopiave shareholders as of 30th June 2010
Ascopiave shareholders as of 30th June 2010 Description of the majority shareholder: 93 municipalities Asco Holding S.p.A. is an holding company partecipated by 93 municipalities, mainly located in Province of Treviso. It holds capital stake in NORTHERN Ascopiave S.p.A. and in other companies: ITALY
Slide 13: Equity story before IPO (1956-2006)
Equity story before IPO (1956-2006) Capability to take opportunities from the market with a strong consolidation track record Expansion and growth stategy: 8 acquisition +64 new concessions +108,000 new clients 2010 Investments of € 140 mln Listing at Milan Stock Excange Expansion of gas distributio
Slide 14: Initial Public Offering (IPO)
Initial Public Offering (IPO) Ascopiave was listed on Milan Stock Exchange Star segment on 12 December 2006. Global coordinator, lead manager and sole bookrunner of the institutional offering was Mediobanca - Banca di Credito Finanziario S.p.A. The IPO was launched through a public offering for the
Slide 15: Use of IPO proceeds
Use of IPO proceeds Ascopiave has used the IPO proceeds to finance a series of investments pursuing the dimensional growth of the Group, both by internal lines (investments in gas distribution network and other capital expenditures) and by external lines (investments in firm / companies acquisitions
Slide 16: Equity story after IPO (2007-2010)
Equity story after IPO (2007-2010) Long-Term Gas Supply Agreement between SIN IT and Gazprom (2009-2018) Increase of capital stake in New Acquisitions: 2010 Sinergie Italiane Edigas DG (100%) (SIN IT): 27.6% Edigas Due (100%) Company set up: (North-Western Italy) Sinergie Italiane (SIN IT): 20.01% N
Slide 17: Growth in the gas down-stream market in 2007–2009 (1)
Growth in the gas down-stream market in 2007–2009 (1) Number of gas sale customers NORTHERN ITALY (*) (*) (*) (*) Operating data of the companies consolidated proportionally (49% or 51%) are taken into account at 100% Page 17
Slide 18: Growth in the gas down-stream market in 2007–2009 (2)
Growth in the gas down-stream market in 2007–2009 (2) Volumes of gas sold (scm/mln) (*) NORTHERN ITALY (*) Operating data of the companies consolidated proportionally (49% or 51%) are taken into account at 100% Page 18
Slide 19: Growth in the gas down-stream market in 2007–2009 (3)
Growth in the gas down-stream market in 2007–2009 (3) Number of gas users 2006 2009 Lenght of gas distribution network 6,360 km 7,526 km RAB 223 mln 298 mln RAB - before IPO consolidation area 263 mln RAB - companies acquired after IPO 35 mln Northern Italy ITALY Page 19
Slide 20: Market positioning (1)
Market positioning (1) No. of gas sale customers in Triveneto Triveneto No of gas sale Ranking Gas sale operator customers in % Triveneto 1 Ascopiave Group (*) 685.000 26,1% 2 ENI 500.000 19,1% 3 Enel Gas 160.000 6,1% 4 Trentino Servizi 130.000 5,0% 5 AGSM Verona 125.000 4,8% 6 AIM Vicenza 115.000 4
Slide 21: Market positioning (2)
Market positioning (2) Volumes of gas sold in Italy (a) Vol. of gas sold in Vol. of gas sold in Ranking Gas sale operators % Ranking Gas sale operators % Italy (Mcm) Italy (Mcm) 1 Eni 26,862 38.6% 1 Eni 26,862 38.1% 2 Enel 12,799 18.4% 2 Enel 12,799 18.2% 3 E.On 3,927 5.6% 3 E.On 3,927 5.6% 4 Edison
Slide 22: Contents: Gas distribution
Contents Gas distribution Legal framework ................................................................................................ Pag. 23 Expiring date of the ongoing gas distribution concessions ................................ Pag. 24 Concessions ..........................................
Slide 23: Legal framework
Legal framework The regulation of the gas sector was reformed considerably in 2000, following the introduction of the Letta Decree (Legislative Decree No. 164/00), which began the process of liberalising the Italian gas market. The liberalization concerns every activity of the gas chain, including g
Slide 24: Expiring date of the ongoing gas distribution concessions
Expiring date of the ongoing gas distribution concessions Regulation concerning the expiring date of the ongoing gas distribution concessions has been modified several times during the last ten years: Lgs. D. 164/2000 (so called Letta Decree) Art. 1 Com. 69, L. 239/2004 (so called Marzano Law) Art.
Slide 25: Concessions
Concessions 50,5% of concessions from shareholder municipalities Number Populations (a) Network (km) (b) Awards from Asco Holding member municipalities 92 649.924 3.795 Concessions from other municipalities 90 508.474 3.658 Total 182 1.158.398 7.453 93,7% of users on concessions expiring in or beyon
Slide 26: Ownership of gas distribution network and compensation upon expiry date
Ownership of gas distribution network and compensation upon expiry date Ascopiave is the owner of gas distribution networks in municipalities in which it operates. In accordance with Letta Decree, at the end of concessions or at the end of transition period, local authorities must award gas distribu
Slide 27: Decrees to be issued by Ministry of Economic Development (1)
Decrees to be issues by Ministry of Economic Development (1) Regulation of the “minimum territorial district” Minimum territorial district - joining a pool of municipalities with a minimum number of users - to be defined by the Ministry of Economic Development (jointly with other public authorities)
Slide 28: Decrees to be issued by Ministry of Economic Development (2)
Decrees to be issues by Ministry of Economic Development (2) Regulation of the “call of tenders” Regulation of the “call of tenders” to be provided by the Ministry of Economic Development (jointly with other public authorities). Main issues: 1) Value of the assets to be paid to the outgoing concessi
Slide 29: Tariff regulation: third regulatory period
Tariff regulation: third regulatory period Third regulatory period Tariff regulation is provided by AEEG (national authority for the gas and electricity sectors) Ongoing regulatory period: 2009-2012 Evaluating system for the Regulatory Asset Base (Capital Invested): based on the network book value b
Slide 30: Tariff regulation: VRT breakdown (1)
Tariff regulation: VRT breakdown (1) 2010 VRT (*) (“Vincolo dei Ricavi Ammesso”, i.e. 2010 Total Revenue Constraint) VRT = CO + AMM + CI x rd 2010 VRT (Thousand of Euro) 2010 CO 20,570 where: 2010 AMM 12,606 2010 CI x rd 24,332 CO: represents the tariff quota covering Total 2010 VRT (*) 57,508 manag
Slide 31: Tariff regulation: VRT breakdown (2)
Tariff regulation: VRT breakdown (2) Comparison between Ascopiave Group 2009 VRT, 2010 VRT and 2010 VRT UN-CAPPED 2010 VRT CHANGE CHANGE 2009 VRT 2010 VRT UN-CAPPED 2009-2010 VRT 2010 VRT components CO 21,123 20,570 20,570 -0,553 0,000 VRT AMM 10,901 12,606 14,588 1,706 1,982 CI x rd 22,687 24,332 2
Slide 32: Gas distribution tariffs applied to end customers
Gas distribution tariffs applied to end customers During the third regulatory period, gas distribution tariffs applied by gas distributors to their customers are determinated by AEEG. Tariffs are up-dated annually. TARIFF AREAS Gas distribution tariffs are defined for tariff areas* and are articolat
Slide 33: Tariff equalization system
Tariff equalization system Tariff equalization mechanism Tariff regulation provides a revenues equalization system - managed by a national authority (i.e. “Cassa Conguaglio per il Settore Elettrico”) - that makes the gas distribution revenues of each distributor equal its pre-determined Total Revenu
Slide 34: SWOT analysis – Distribution SBU
SWOT analysis – Distribution SBU Strengths Weakness Dimensional level that allow exploitation of interesting Expiry of concessions and direct awards foresees by management economies of scale Law, in case of the most prudential and unfavourable interpretation of the actual regulation, in 2009-2010 tw
Slide 35: Contents: Gas sales
Contents Gas sales Legal framework ................................................................................................ Pag. 36 Volumes of gas sold by the Group ..................................................................... Pag. 37 Gas sales to end customers: market segmentation a
Slide 36: Legal framework
Legal framework The liberalization of the Italian gas sector begun with the introduction of the Legislative Decree No. 164/00 (so called Letta Decree). The liberalization concerns every activity of the gas chain, including gas distribution and gas sale. Gas sale market liberalization Gas sale segmen
Slide 37: Volumes of gas sold by the Group
Volumes of gas sold by the Group Volumes of gas sold by the Group 2009 data (scm/million) 1.800 To end customers of companies 65.0% 886.2 1.600 consolidated integrally (a) 1.400 1.200 1.000 35.0% To end customers of companies 566.5 800 1.453 consolidated proportionally (b) 600 400 783 200 To end cus
Slide 38: Gas sales to end customers: market segmentation and selling prices
Gas sales to end customers: market segmentation and selling prices Volumes of gas sold to end customers Pricing Market segmentation Mandatory maximum price level set by Domestic customers ~ 50% the Authority of Energy and Gas Small business Completely free prices; mainly price ~ 20% customers discou
Slide 39: Gas sales on trading activities: market segmentation and selling prices
Gas sales on trading activities: market segmentation and selling prices Volumes of gas sold on trading activities Pricing Market segmentation PSV ~ 75% Completely free prices Entry Point ~ 19% Completely free prices Completely free prices (fixed mark-up on the Wholesales ~ 6% corresponding purchasin
Slide 40: Gas purchasing costs
Gas purchasing costs Gas purchasing costs Gas purchasing costs are negotiated on a free market Incumbent shippers have strong market position The shipping company Sinergie Italiane (27.6% Ascopiave) is the main gas supplier of the Group (~ 60% of estimated volumes sold to end customerss in thermal y
Slide 41: Gas selling price to domestic end customers (1)
Gas selling price to domestic end customers (1) Gas price applicated to domestic end customers is determinated by AEEG and is articolated in the following components, each of them destinated to remunerate a particular activity of the gas chain: CCI Tariff component relative to wholesaling commercial
Slide 42: Gas selling price to domestic end customers (2)
Gas selling price to domestic end customers (2) P P == CCI CCI ++ QT QT ++ QS QS ++ QOA QOA ++ TD TD ++ QVD QVD ++ GCT GCT ++ VAT VAT CCI = wholesale cost of gas TD = Distribution tariff QT = transportation cost via national network QVD = Retail sale cost QS = storage cost of gas GCT = Gas consumpti
Slide 43: Gas selling price to domestic end customers (3)
Gas selling price to domestic end customers (3) Gas selling price to domestic end customers: from 3rdQ 2009 to 2ndQ 2010 National average price of natural gas for a family with autonomous heating and annual gas consumption of 1,400 scm. (Data in €cent/scm) Page 43
Slide 44: Review of QVD component
Review of QVD component Review of QVD component of the gas selling price Res. AEEG No. 64/09 Resolution define a national single value for QVD component, ensuring to sale companies a coverage more coherent of commercialization costs and equal treatment to all the customers Until 31 December 2010, QV
Slide 45: Review of CCI component
Review of CCI component Review of CCI component of the gas selling price Res. AEEG No. 89/10 Since 1st october 2010 It modified the formula with which quarterly update the reference gas price It foresee a reduction of CCI variable component allowing a money saving for the customers during all the th
Slide 46: SWOT analysis – Sales SBU
SWOT analysis – Sales SBU Strengths Weakness Large end customer base Limited diffusion and knowledge of the brand outside of High per-capita consumption the region served Front offices capillarity Low switch rate Efficient customer care service Differentiation of offered services (dual fuel) Indepen
Slide 47: Contents: Photovoltaic power plants
Contents Photovoltaic power plants AscoEnergy business model .............................................................................. Pag. 48 Ascopiave Group and Casillo Group Joint Venture ............................................ Pag. 49 Specchiano S.r.l. .................................
Slide 48: AscoEnergy business model
AscoEnergy business model AscoEnergy business model AscoEnergy business model contemplates a mix of direct project development and acquisition of projects developed by third parties (Joint Ventures are preferred). For what concerns direct developments, AscoEnergy manages the high value added activit
Slide 49: Ascopiave Group and Casillo Group Joint Venture
Ascopiave Group and Casillo Group Joint Venture Ascopiave Group and Casillo Group Joint Venture Casillo Partecipazioni S.r.l. Ascopiave S.p.A. Bioenergy Italia S.r.l. 100% 70% 30% Agroenergetica S.r.l. AscoEnergy S.r.l. 50% 50% Serin S.r.l. 100% 100% 100% 100% 100% 100% New Co. 1 Specchiano S.r.l. L
Slide 50: Specchiano S.r.l.
Specchiano S.r.l. Specchiano S.r.l. Main financial data for the Specchiano project (photovoltaic plant with 1MWp of installed power). Progressive cash flow 5.000.000 4.000.000 3.000.000 2.000.000 1.000.000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 -1.000.000 -2.000.000 -3.000.000 Leverage
Slide 51: Contents: Strategy
Contents Strategy Strategic guidelines and objectives .................................................................... Pag. 52 Growth in the down-stream market .................................................................... Pag. 54 Growth in the down-stream market: model ...................
Slide 52: Strategic guidelines and objectives (1)
Strategic guidelines and objectives (1) Strategic guidelines taking advantage of opportunities arising from the liberalisation of the gas market, including opportunities in the national and international gas wholesale, transportation and storage market consolidating its presence as a utility provide
Slide 53: Strategic guidelines and objectives (2)
Strategic guidelines and objectives (2) Dimensional growth by a significant increase of the customer base and of the volumes sold consolidating the leadership in the North-East and a national role • GROWTH VIA ACQUISITION (“EXTERNAL GROWTH”) • “ORGANIC GROWTH” • TRADING AND WHOLESALING • RETENTION O
Slide 54: Growth in the down-stream market
Growth in the down-stream market Growth in size through a significant expansion of its customer base Participation in competitive bidding for the award of contracts to manage the gas distribution service Development of the electricity market as a tool to retain current gas customer base (cross selli
Slide 55: Growth in the down-stream market: model
Growth in the down-stream market: model 1. Acquisitions 2. Acquisitions 3. Partnership (both gas distribution (only gas sales on sales activity and sales business) business) Model Model Model Ascopiave Ascopiave > 50% Ascopiave S.p.A. S.p.A. S.p.A. Ascotrade Bimetano Gas distribution S.p.A. Servizi
Slide 56: Import infrastructures and new projects
Import infrastructures and new projects TAG TRANSITGAS Russia Netherlands/ Norway 31 Gmc +6.5 Gmc 18 Gmc PIPELINE Gas Natural Slovenia Trieste 1,5 Gmc 8 Gmc ENI Panigaglia Endesa Trieste 4 Gmc 8-12 Gmc Edison/Rovigo Olt Livorno 8 Gmc 4 Gmc BG/Brindisi IGI Edison/BP Rosignano 8 Gmc 8 Gmc 8 Gmc Cross
Slide 57: Long Term supply agreement with Sonatrach
Long Term supply agreement with Sonatrach Current agreement with Sonatrach Purchase of 500 Scm/M of gas import through GALSI pipeline Duration of the agreement: 15 years from the date in which GALSI will go into operation Current agreements with: Shell, Essent, EGL, Vitol, RWE, EON, BP GALSI Nationa
Slide 58: Leading role in Sinergie Italiane
Leading role in Sinergie Italiane SinIt gas volumes (Bcm/y) National demand (Bcm/y) 5,00 4,30 96.00* 84.88 78.13 2 3,10 1,49 Others 1,33 41 Thermoelectric 33,9 28,66 19,31 16,49 21 Industrial Residential & 30 32 32 Commercial 2008/2009 2009/2010 2010/2011 2008 2009 2020 E Sinergie Italiane Is one of
Slide 59: Sinergie Italiane Shareholders
Sinergie Italiane Shareholders 27.6% 7.2% 27.6% 3.1% 6.9% 27.6% Sinergie Italiane, has been established in 2008 to create a cooperation among downstream companies of the Italian energy sector, with the characteristic of a strong fidelized customer base and high local rooting The company is based in
Slide 60: Sinergie Italiane: volumes ranking
Sinergie Italiane: volumes ranking Gas sold in Italy by the most important operators* (Bcm/y) 48.60 12.70 7,00 4,30 3,89 2,79 2,53 2,30 2,10 2,07 1,60 1,52 1,37 1,29 ng ne ce g b e cato ng e in g as i As nia n de ade oi En ad in so En di li a an di ig ad ad e Tr di a tr er ra lur rg I ta Fr Tr Tr co
Slide 61: Sinergie Italiane: supply opportunity
Sinergie Italiane: supply opportunity Pipeline capacity Sinit manages all the phases of the supply chain (supply, transportation and storage) Sinit has long term capacity on europeran TAG Dunkerque pipelines Transitgas Swissgas Wallbach is active on the most important European Hubs is one of the mos
Slide 62: Long term supply agreement with Gazprom
Long term supply agreement with Gazprom Long term supply agreement with Gazprom Contract TOP signed by Sinergie Italiane Total volumes supplied: 1.0 B/Scm per year in 2009-2010 TY 1.5 B/Scm per year in 2011-2021 TY Starting from October 2009 The Long Term Agreement follows two yearly contracts Deliv
Slide 63: Contents: Financials
Contents Financials FY 2009 financial results FY 2009 income statement ........................................................................ Pag. 64 FY 2009 income statement break-down by Strategic Business Unit .......... Pag. 65 Balance sheet ....................................................
Slide 64: FY 2009 income statement
FY 2009 income statement (Thousand of Euro) 2009 2008 Chg Chg % Revenues 764.151 824.672 (60.521) -7,3% (Cost of raw materials and consumables) (617.384) (703.872) 86.488 -12,3% (Cost of services) (58.888) (43.377) (15.511) +35,8% (Cost of personnel) (18.377) (15.494) (2.883) +18,6% (Other operating
Slide 65: FY 2009 income statement break-down by Strategic Business Unit
FY 2009 income statement break-down by Strategic Business Unit Sales Strategic Business Unit (SBU) includes companies that are active only in gas and electricity sales. All the other companies that are active in gas distribution, in supplying heating services management and in photovoltaic and in co
Slide 66: Balance sheet
Balance sheet (Thousand of Euro) 31/12/2009 31/12/2008 Chg Chg % Tangible assets 329.970 319.279 10.691 +3,3% Non tangible assets 114.542 92.776 21.767 +23,5% Other fixed assets 15.418 13.860 1.558 +11,2% Fixed assets 459.930 425.915 34.016 +8,0% Operating current assets 211.796 281.573 (69.777) -24
Slide 67: Capital employed as of 31st December 2009
Capital employed as of 31st December 2009 31/12/2009 Tangible assets: this voice refers mainly to costs Tangible assets 329.970 held for the realization of the distribution plants, Goodwill 92.225 of the natural gas distribution network, of the Other non tangible assets 22.317 connections to the net
Slide 68: Volumes of gas sold to end customers
Volumes of gas sold to end customers Volumes of gas sold to end customers (Million of standard cubic meters) (*) (**) Gas sold to end customers Gas sold to end customers Companies consolidated at 100% Companies consolidated at 49%-51% (*) 1stH 2009 of Edigas Due + 2ndH 2009 of Pasubio Servizi (**) 2
Slide 69: Volumes of gas sold on trading and wholesaling activities
Volumes of gas sold on trading and wholesaling activities Volumes of gas sold on trading and wholesaling activities (Million of standard cubic meters) Page 69
Slide 70: EBITDA bridge
EBITDA bridge EBITDA bridge (Thousand of Euro) EBITDA bridge: EBITDA of new consolidation area: +€2,7M Increase of EBITDA of 2008 consolidation area: +€6,5M Page 70
Slide 71: Gross margin on gas sales
Gross margin on gas sales (Thousand of Euro) 2009 2008 Chg Chg % Revenues from gas sales to end customers 486.665 475.199 11.465 +2,4% Revenues from gas trading and wholesaling 214.253 283.917 (69.665) -24,5% Revenues from gas sales 700.917 759.117 (58.199) -7,7% (Gas purchase costs) (592.415) (669.
Slide 72: Distribution tariff revenues
Distribution tariff revenues (Thousand of Euro) 2009 2008 Chg Chg % Tariffs applied to sales companies 51.070 46.395 4.675 +10,1% Equalization amount (+ / -) 3.086 - 3.086 n.a. Gas distribution tariff revenues 54.156 46.395 7.761 +16,7% The increase of gas distribution tariff revenues (+ Euro 7,8 ml
Slide 73: Other changes
Other changes Other changes Net operating costs of new consolidation area*: -€3,2M Decrease of net operating costs of 2008 consolidation area: +€0,7M, of which: • decrease of revenues for distribution network connection services: -€1,0M • increase of personnel cost: -€1,3M • 9M 2008 Bimetano Servizi
Slide 74: Net Financial Position
Net Financial Position (Million of Euro) Page 74
Slide 75: Contents: Financials – 1stQ 2010 financial results
Contents Financials FY 2009 financial results 1stQ 2010 financial results 1stQ 2010 income statement ..................................................................... Pag. 76 Balance sheet ............................................................................................ Pag. 77 Applic
Slide 76: 1stQ 2010 income statement
1stQ 2010 income statement (Thousand of Euro) 1stQ 2010 1stQ 2009 Chg Chg % Revenues 293.668 356.260 (62.592) -17,6% (Cost of raw materials and consumables) (222.194) (302.874) 80.679 -26,6% (Cost of services) (33.531) (17.588) (15.944) +90,7% (Cost of personnel) (5.057) (4.683) (374) +8,0% (Other o
Slide 77: Balance sheet
Balance sheet (Thousand of Euro) 31/03/2010 31/12/2009 Chg Chg % Tangible assets (*) 32.932 31.431 1.501 +4,8% Non tangible assets (*) 414.050 413.081 968 +0,2% Other fixed assets 15.523 15.418 104 +0,7% Fixed assets 462.505 459.930 2.574 +0,6% Operating current assets 356.614 211.796 144.818 +68,4%
Slide 78: Application of IFRIC 12 (1)
Application of IFRIC 12 (1) With effect from the interim report at 31st March 2010, the Ascopiave Group has published its accounts applying IFRIC 12, the International Accounting Standards Board interpretation governing the method of accounting for and measuring service concession arrangements. IFRI
Slide 79: Application of IFRIC 12 (2)
Application of IFRIC 12 (2) Effects of IFRIC 12 interpretation on Ascopiave Group balance sheet The application of IFRIC 12 interpretation has determined for the Ascopiave Group a reclassification of the net accounting value of the assets in the balance sheet as of 31 December 2009 (equals to 294,7
Slide 80: Contents: Financials – 2006-2009 financial comparison
Contents Financials FY 2009 financial results 1stQ 2010 financial results 2006-2009 financial comparison 2006-2009 income statement .................................................................... Pag. 81 Balance sheet .............................................................................
Slide 81: 2006-2009 income statement
2006-2009 income statement (Thousand of Euro) 2009 2008 2007 2006 cagr 06-09 Revenues 764.151 824.672 451.871 318.105 33,9% (Cost of raw materials and consumables) (617.384) (703.872) (368.052) (245.935) 35,9% (Cost of services) (58.888) (43.377) (22.984) (10.115) 79,9% (Cost of personnel) (18.377)
Slide 82: Balance sheet
Balance sheet (Thousand of Euro) 31/12/2009 * 31/12/2008 31/12/2007 31/12/2006 cagr 06-09 Tangible assets 329.970 319.279 288.471 273.772 6,4% Non tangible assets 114.542 92.776 81.164 23.524 69,5% Other fixed assets 15.418 13.860 13.477 15.540 -0,3% Fixed assets 459.930 425.915 383.112 312.836 13,7
Slide 83: 2006-2009 EBITDA break-down by Strategic Business Unit
2006-2009 EBITDA break-down by Strategic Business Unit (Million of Euro) Distribution Sales INCOME STATEMENT Group % % SBU SBU Revenues 764,2 77,2 763,5 (Gas purchase costs) (581,5) (0,0) (592,4) (Other operating costs) (121,1) (35,6) (151,1) EBITDA 61,5 41,6 67,6% 19,9 32,4% Revenues 824,7 72,6 811
Slide 84: Main financial ratios
Main financial ratios Ascopiave Group main financial ratios Average Average Return on Investment (8.8% pre-tax) is higher than real pre-tax return of ROI investment provided by the gas distribution regulatory system (~7.6%) Page 84
Slide 85: Financial leverage comparison
Financial leverage comparison Financial leverage comparison (**) (*) Ascopiave financial leverage (0.22) is lower than those of the Italian listed competitors (avg: 1.30). The low indebtedness level is a positive result in the light of a macroeconomic scenario that makes access to credit a real chal
Slide 86: Change of net financial position (1)
Change of net financial position (1) Gas consumption depends on the seasons, with a higher demand for the winter period (January–March). The seasonability of the activity affects the trend of the net financial position, because the revenues cycle are not aligned with the costs cycle based on the fac
Slide 87: Change of net financial position (2)
Change of net financial position (2) Considering only the companies belonging to the historical area (Ascopiave and Ascotrade) and normalizing the net financial position hypothesizing that (1) Ascopiave has not been listed on Milan Stock Exchange, (2) that it has not make investment in company acqui
Slide 88: Plan for the sale and purchase of own shares
Plan for the sale and purchase of own shares The new plan for the sale and purchase of own shares has been authorized by shareholders’ meeting as of 28th April 2010. The decision to approve a new plan was due to the need to immediately taking advantage of the opportunity introduced by Legislative De
Slide 89: Contents: Sinergie Italiane
Contents Sinergie Italiane Income statement ............................................................................................ Pag. 90 Balance sheet .................................................................................................. Pag. 91 Gas sourcing and usage ...........
Slide 90: Income statement
Income statement Sinergie Italiane started its operations on 1st October 2008 and closed his first balance on 30th September 2009. The company opted for an accounting period coinciding with the thermal year, consistently with the common activities of natural gas business. (Thousand of Euro) 9M 2009
Slide 91: Balance sheet
Balance sheet (Thousand of Euro) 30/09/2009 Fixed capital 75 Other non current assets and liabilities 676 The reclassified balance sheet, in terms of (Risk liabilities) (499) “sources” and “uses” of cash, show a negative Other current assets and liabilities 9.962 net financial position for 201,3 mil
Slide 92: Gas sourcing and usage
Gas sourcing and usage During the thermal year 2008/2009 Sinergie Italiane totally sold approximately 3.6 billions of cubic meters of natural gas, of which 0.2 bcm relating to trading activities towards other shipping companies (at PSV, Italian boarder or other European hubs), while the others 3.4 b
Slide 93: Net financial position (1)
Net financial position (1) The reclassified balance sheet as of 30th September 2009, illustrated in a previus slide, show a financial indebtness of 201.3 million of Euro (97.5% of total capital employed). The financial dinamic of Sinergie Italiane has been characterized by the need to face toward an
Slide 94: Net financial position (2)
Net financial position (2) The financial exposure is binded mainly to need to finance the net working capital of the company, that results mainly constituted by gas stocked following up gas purchase in the summer period. Therefore net financial position and gas Net financial position Gas stocked sto
Slide 95: Guarantees
Guarantees Capital commitments, equals to 116.3 milion of Euro, refers mainly to: guarantees given in favour of Stogit to warranty for strategic storage and modulation service contract (8.5 million of Euro) guarantees given in favour of Eni, Snam Rete Gas (29.6 million of Euro) and Trans Austria Gas
Slide 96: Financial and non-financial risks
Financial and non-financial risks Financial risks Sinergie Italiane is exposed to risks linked to disalignment between indicization formulas relative to gas purchasing and those relative to gas selling, above all because of high volatility of oil-bearing commodities and of the associated change in a
Slide 97: Contents: Dividends and share performance
Contents Dividends and share performance Dividend policy ................................................................................................. Pag. 98 FTSE indexes performance ............................................................................. Pag. 99 Ascopiave share performanc
Slide 98: Dividend policy
Dividend policy Dividends payment sustainable with high return to shareholders Sustainability of the dividend policy: stable cash flow stable business profitability well-balanced financial structure Dividend yield at the top of the listed italian utilities companies DIVIDENDS 2009 2008 2007 2006 AVG
Slide 99: FTSE indexes performance
FTSE indexes performance FTSE indexes performance from 4th January 2010 to 30th June 2010 FTSE Star index has over-performed the other indexes: FTSE All Share: -17.06% FTSE Small Cap: -12.17% FTSE Star: -8.29% Page 99
Slide 100: Ascopiave share performance
Ascopiave share performance Ascopiave Share performance from 4th January 2010 to 30th June 2010 Ascopiave Share has over-performed FTSE indexes: Ascopiave Share: +2.90% FTSE All Share: -17.06% FTSE Star: -8.29% Page 100
Slide 101: Contents: Annexes
Contents Annexes 1stQ 2010 financial results 1stQ 2010 income statement ................................................................... Pag. 102 Balance sheet .......................................................................................... Pag. 103 Volumes of gas sold to end customers
Slide 102: 1stQ 2010 income statement
1stQ 2010 income statement (Thousand of Euro) 1stQ 2010 1stQ 2009 Chg Chg % Revenues 293.668 356.260 (62.592) -17,6% (Cost of raw materials and consumables) (222.194) (302.874) 80.679 -26,6% (Cost of services) (33.531) (17.588) (15.944) +90,7% (Cost of personnel) (5.057) (4.683) (374) +8,0% (Other o
Slide 103: Balance sheet
Balance sheet (Thousand of Euro) 31/03/2010 31/12/2009 Chg Chg % Tangible assets 32.932 31.431 1.501 +4,8% Non tangible assets (*) 414.050 413.081 968 +0,2% Other fixed assets (*) 15.523 15.418 104 +0,7% Fixed assets 462.505 459.930 2.574 +0,6% Operating current assets 356.614 211.796 144.818 +68,4%
Slide 104: Volumes of gas sold to end customers
Volumes of gas sold to end customers Volumes of gas sold to end customers (Million of standard cubic meters) (*) Gas sold to end customers Gas sold to end customers Companies consolidated at 100% Companies consolidated at 49%-51% (*) Pasubio Servizi Page 104
Slide 105: Volumes of gas sold on trading and wholesaling activities
Volumes of gas sold on trading and wholesaling activities Volumes of gas sold on trading and wholesaling activities (Million of standard cubic meters) Page 105
Slide 106: EBITDA bridge
EBITDA bridge EBITDA bridge (Thousand of Euro) EBITDA bridge: EBITDA of new consolidation area: +€1,8M Increase of EBITDA of 1stQ 2009 consolidation area: +€1,0M Page 106
Slide 107: Gross margin on gas sales
Gross margin on gas sales (Thousand of Euro) 1stQ 2010 1stQ 2009 Chg Chg % Revenues from gas sales to end customers 224.879 244.301 (19.422) -8,0% Revenues from gas trading and wholesaling 53.765 92.573 (38.808) -41,9% Revenues from gas sales 278.644 336.874 (58.230) -17,3% (Gas purchase costs) (210
Slide 108: Distribution tariff revenues
Distribution tariff revenues (Thousand of Euro) 1stQ 2010 1stQ 2009 Chg Chg % Tariffs applied to sales companies 23.331 21.241 2.090 +9,8% (Contribution to national funds) - (354) 354 -100,0% Equalization amount (+ / -) (8.943) - (8.943) n.a. Gas distribution tariff revenues 14.388 20.887 (6.499) -3
Slide 109: Other changes
Other changes Other changes Net operating costs of new consolidation area*: -€0,4M Decrease of net operating costs of 1stQ 2009 consolidation area: +€1,2M, of which: • decrease of revenues for distribution network connection services: +€0,1M • increase of personnel cost: -€0,2M • 49% of 1stQ 2009 Ve
Slide 110: Net Financial Position
Net Financial Position (Million of Euro) Page 110