Slide 1: 9M 2015 financial results
9M 2015 financial results Analyst presentation 11 November 2015
Slide 2: Positive 9 months results confirms growth's track record
Positive 9 months results confirms growth’s track record 9M Ebitda growth track record Main figures up by quarters (M€) (M€ and %Q/Q) 700 640 627 +12.0% 581 600 +7.1% 500 467 468 +4.7% 431 390 +118 400 351 +33.2% +5.5% +92.2 300 +4.1% +5,2 +1.1% +8,2 +1.4% +51.3 +17.2% 200 +2,9 +3,4 +2,5 +2,6 100 0
Slide 3: Bottom line double digit growth rate
Bottom line double digit growth rate 9 M R E S U LT H I G H L I G H T S (M€) • Revenues underpinned by more favourable 9M ‘14* 9M ‘15 climate conditions and increased gas trading. REVENUES 3,210.8 3,472.4 +8.1% EBITDA 626.7 640.2 +2.2% • D&A increase mainly relates to Amga merger. Depreciation and p
Slide 4: Internal and external drivers for a still growing Ebitda
Internal and external drivers for a still growing Ebitda 9M EBITDA growth drivers (M€) • Balanced contribution from “internal” and “external” growth drivers. +4.2% +2.2% • Growth driven by: 626.7 +13,1 640.2 • enhanced profitability of Networks +10.5 +3.5 • higher gas volumes (13.5) • better Energy
Slide 5: WASTE: managing treatments with lower landfill utilization
WASTE: managing treatments with lower landfill utilization 9M ‘15 Waste Ebitda by quarters (M€) • 9M Ebitda shows a slight recovery vs Q1 performance with last 2 quarters in line with those 176,5 172.5 of last year. +1.0 (4.9) • Volumes from third parties progressively “normalised” since Q1 despite
Slide 6: NETWORKS good performer
NETWORKS good performer NETWORKS Ebitda (M€) + 2.1 307,0 • 9M Ebitda in line with 9M ‘14 offsetting (8 m€) +12.5 specific equalization (“perequazione specifica”) and white certificates revaluation (6 m€). 295,9 +9.4 +0.6 • Gas distribution and D.H. benefitting from better winter temperature and from
Slide 7: Market expansion, climate conditions and AMGA merger underpin growth
Market expansion, climate conditions and AMGA merger underpin growth ENERGY Ebitda (M€) +2.9 145.9 +16.6 • Colder winter and trading activities underpin gas volumes increase +35.8%. 139.0 • HERACOMM expansion in electricity markets continues (+49K customers in 9M to 844K) highlighting solid competit
Slide 8: 9 months FCF funded M&A, Capex and Dividend payments
9 months FCF funded M&A, Capex and Dividend payments 9 Month cash flows (M€) • Free Cash flows exceed capex and dividends +377 • Working capital management contributed to positive FCF. • Excess cash invested in minorities acquisition confirming Financial Debt at 2.64 +3.7 (142.4) b€ as at the beginn
Slide 9: Closing remarks
Closing remarks • Long growth track record confirmed 9M Earnings (M€) • “Two gear” consistent growth model +12.3% • Investing in attractive waste market • Positive cash generation enhances financial soundness 125 111 • Earnings up by 12.3% 9M '14 9M '15 Sticking to track records Accretive Expanding
Slide 10: Q&A Session / Annex
Q&A SESSION Investor Relations IR@gruppohera.it Y2014 Q1 ‘15 H1 ‘15 Q3 ‘15 new B.P. ANNEX with further information
Slide 11: 9M 2014 restatement on like for like basis accounting IFRC 12
9M 2014 restatement on “like for like” basis accounting IFRC 12 (m€) 9M '14 Restatement 9M '14 9M '15 Reported Restated Revenues 3,216.8 (6.0) 3,210.8 3,472.4 Operat. Costs (2,226.1) (0.0) (2,226.1) (2,469.5) • IFRC 12 reclassifies a category of revenues +0.0 (“fondo fughe” mainly) as provisions and
Slide 12: Financial highlights breakdown by business
Financial highlights breakdown by business Recovering Q1 performance Tariffs underpinned a solid growth (m€) 9M '14 Restatement 9M '14 9M '15 Ch. % (m€) 9M '14 Restatement 9M '14 9M '15 Ch. % Reported Restated Reported Restated Revenues 651.1 (0.1) 651.0 679.3 +4.3% Revenues 587.6 (3.8) 583.8 599.1
Slide 13: Financial highlights breakdown by business
Financial highlights breakdown by business Volumes and margins up Conquering market share (m€) 9M '14 Restatement 9M '14 9M '15 Ch. % (m€) 9M '14 Restatement 9M '14 9M '15 Ch. % Reported Restated Reported Restated Revenues 1,003.3 (1.9) 1,001.4 1,117.3 +11.6% Revenues 1,043.8 (0.1) 1,043.8 1,157.8 +