Hera S.p.a. · MIL:HER
Hera — Debt Investor Presentation (June 2014)
36 slides from Hera's debt investor presentation, June 2014
Slide 1: Hera Group Green Bond Presentation
HERA GROUP Green Bond Presentation J u n e 2 3 rd t o 2 6 th 2 0 1 4 Touching the future NOW
Slide 2: Disclaimer
Disclaimer IMPORTANT: YOU ARE ADVISED TO READ THE FOLLOWING CAREFULLY BEFORE READING, ACCESSING OR MAKING ANY OTHER USE OF THE MATERIALS THAT FOLLOW. These materials have been prepared by and are the sole responsibility of HERA Spa (the “Company”) and have not been verified, approved or endorsed by
Slide 3: Contents
Contents Sections 1. Introduction to Hera : Presentation & Strategy 2. Financial Review 3. Sustainability at Hera 4. Green Bond 5. Appendices 3
Slide 4: Introduction to Hera: Presentation & Strategy
Introduction to Hera: Presentation & Strategy 4
Slide 5: Who We Are
Who We Are Hera is a multi-utility leader in environmental, water Hera pursues a responsible management of natural and energy services, and is 57.6% owned by public resources and the use of solutions aimed at shareholders as of December 31st, 2013. improving the environmental impact of its activitie
Slide 6: Shareholding & Corporate Structure
Shareholding & Corporate Structure Municipalities Municipalities Municipalities Municipalities Municipalities Municipalities Bank of Romagna of Bologna of Modena of Padova of Trieste of Ferrara foundations Free Float Provinces Province Province Province Province Province agreement 20,9% 14.5% 9.9% 5
Slide 7: Continuing to Keep on Course, Sticking to Our Strategy
Continuing to Keep on Course, Sticking to Our Strategy 1 Strengthening regulated asset base 2 Focus on efficiency gains Maintain control of networks on ref. territory and Activities reorganisation (divisionalization), investing in efficiency streamlining Group structure. Rationalization and Cost Cut
Slide 8: Financial Review
Financial Review 8
Slide 9: 2013 Ebitda Growth: Mix of M&A, Org. Growth and Outperforming Synergies
2013 Ebitda Growth: Mix of M&A, Org. Growth and Outperforming Synergies EBITDA Growth Contribution to growth: (M€) AcegasAps consolidation +130.3 +8.3 +30.0 Outperforming Synergies (in only 12 months) 830.7 Organic Growth: 662.1 Networks favourable regulation Energy: +60k customers through cross sel
Slide 10: Economics: A Resilient Growth
Economics: A Resilient Growth Ever Growing Operating Results Maintaining Sustainable Debt / EBITDA (€m) (x) R E S U LT H I G H L I G H T S - F o c u s o n 2 0 1 3 Overcoming Peak in CapEx(1) (€m) (€m) +25.5% 831 662 +23.9% +43.3% 416 +38.9% 335 306 214 119 165 Ebitda Ebit Pretax Net profit Source: C
Slide 11: Financial Ratios and Debt Maturity Profile
Financial Ratios and Debt Maturity Profile FFO/DEBT* 8 years average debt Duration (%) 47% variable and 53% fixed interest rates +19.7% S&P’s: BBB outlook stable +17.5% Moody’s: Baa1 negative outlook Debt/Ebitda from 3.35x in 2012 to 3.12x in 2013 2012 2013 M / L Te r m D e b t M a t u r i t y P r o
Slide 12: Q1 '14 Figures in a Snapshot
Q1 ‘14 Figures in a Snapshot Q1 EBITDA growth drivers Q1 EBITDA growth drivers ( M € ) ( M € ) +9.2% +1.7% Q1 ‘13* Q1 ‘14 REVENUES 1,441.8 1,292.4 (10.4%) EBITDA 271.1 275.6 +1.7% EBIT 172.6 172.9 +0.2% NET PROFIT POST MINORITIES 80.8 83.2 +3.0% Net Debt 2,566.7 2,540.3 (1.0%) Mild winter impact ful
Slide 13: Sustainability at Hera
PONE ustainability at Hera
Slide 14: Hera Group's CSR Approach
Hera Group’s CSR Approach The Values, the Mission and the Code of Ethics represent, for the Hera Group, the landmarks to define its sustainability objectives and reporting. The Sustainability Report is integrated among the Group’s management tools. The business plan includes sustainability as a stra
Slide 15: Certifications and Ratings
Certifications and Ratings Sustainability Report ESG Rating and Ethical Indices: Hera is included in the following It is Published since 2002, and is approved by the Board of Oekom research: Status: Prime / Rating: B- Directors Kempen SNS Smaller Europe SRI Index It is Verified by a third party (DNV
Slide 16: 2017 Goals in the Three Dimensions of Sustainability
2017 Goals in the Three Dimensions of Sustainability Environmental sustainability Social Sustainability Economic Sustainability Majority of the Group’s electricity and Exceeding AEEG1 standards on safety, Profitability consolidation: EBITDA from heat production (respectively 75% and continuity and c
Slide 17: Environmental Sustainability: Results and Objectives
Environmental Sustainability: Results and Objectives Hera objectives have been defined under the framework of the «Business plan 2014-17». Hera is committed to reach and/or to maintain those performance levels Objectives Results 2017 1 2002 2013 CO2 Emissions (g/KWh) 628* 549 521 Production of Energ
Slide 18: Social Sustainability: Results and Objectives
Social Sustainability: Results and Objectives Results Objectives 2017 1 2002 2013 Gas emergency services (% of calls 94,7%** 98,7% 98,5%5 with an action within 60 minutes) Training (hours per person) 14,1 26,4 24,47 Health and Safety (frequency index)2 49,6 23,9 18,3 Suppliers selected with a social
Slide 19: Green Bond
Green Bond 19
Slide 20: Selection Criteria of Projects Financed by the Green Bond
Selection Criteria of Projects Financed by the Green Bond Environmental Environmental Green Definition of criteria for project eligibility Category Projects category Photovoltaic plants for electrical energy production Biogas from landfills for electrical energy production Increase of energy product
Slide 21: Green Projects at Hera
Green Projects at Hera Increase Increase Sustainable Waste Availability of Management 611 mln Clean Water euro Increase Air quality Environmental Fight Aginst Climate Change investments selected for the Green Bond and reviewed by DNV-GL Energy Waste Environmental Renewable efficiency WTE Plants wate
Slide 22: Green Bond: Structure Framework
Green Bond: Structure Framework Use of proceeds “The net proceeds of the issuance of the Notes will be used by the Issuer to finance and/or refinance, in whole or in part, Eligible Green Projects, carried out directly and/or indirectly through the Issuer’s Subsidiaries.” “Eligible Green Projects” in
Slide 23: Independent Opinion on Green Bond Integrity: DNV-GL Opinion
Independent Opinion on Green Bond Integrity: DNV-GL Opinion DNV Opinion “Based on the information provided by Hera, the eligible projects that will be financed through the Green Bond have the potential to advance the objectives stated above, i.e., fight climate change, improve air quality, increase
Slide 24: Green Investment: Increase of Energy Production from Non-fossil Fuels
Green Investment: Increase of Energy Production from Non-fossil Fuels Photovoltaic plants, anaerobic digestion plants (production of electricity from organic waste), biogas plants (production of electricity from landfill biogas). Future investments consider the acquisition of 3 operating photovoltai
Slide 25: Example of Anaerobic Digester in Cesena
Green Investment – Increase of Energy Production From Non- Fossil Fuels: Example of Anaerobic Digester in Cesena Hera manages (through Romagna Compost) a plant endowed with an integrated anaerobic – aerobic system for the bio treatment of urban and special (but not dangerous) waste. The plant has a
Slide 26: Green Investment: Increase of Energy Efficiency
Green Investment: Increase of Energy Efficiency Construction of cogeneration plants for the purpose of district Sources used for district heating heating (production of electricity and thermal energy), development of district heating network, increase in housing units served with thermal energy. Amo
Slide 27: Example of Imola Cogeneration Plant
Green Investment - Increase of Energy Efficiency: Example of Imola Plant for the production of electricity and thermal energy for the purposes of district heating in the Municipality of Imola. Location: Casalegno (Imola) Capacity: 80 MWe Start date: 2009 Amount: 91 mln euro Certifcation: EMAS, ISO14
Slide 28: Green Investment: Improvement of WTE Plants for Waste Treatment
Green Investment: Improvement of WTE Plants for Waste Treatment Revamping of existing plants to improve plant performances and reduce atmospheric emissions Plant Amount Investment Date start (mln euro) WTE Ferrara: 2006-09 2008 43 WTE Modena fourth 2006-11 2009 47 line WTE Forlì 2006-10 2010 39 WTE
Slide 29: Green Investment: Improvement of Wastewater Treatment Plants Efficiency
Green Investment: Improvement of Wastewater Treatment Plants Efficiency Development of existing wastewater treatment plants and upgrade Main investments to improve efficiency : New wastewater treatment plants Bologna : denitrification section, aimed mainly at improving the The Piano Salvaguardia del
Slide 30: Green Investment: Increase of Separate Waste Collection and Disposal
Green Investment: Increase of Separate Waste Collection and Disposal and Reduction of Waste Disposed in Landfills Extension of the separate waste collection services: purchase of waste # of containers for separate containers (skips/drums, “igloo” bins) and construction of sorted waste collection pla
Slide 31: Appendices
Appendices 31
Slide 32: Use of Proceeds
Use of Proceeds “The net proceeds of the issuance of the Notes will be used by the Issuer to finance and/or refinance, in whole or in part, Eligible Green Projects (as defined below), carried out directly and/or indirectly through the Issuer’s Subsidiaries. “Eligible Green Projects” include Air Qual
Slide 33: Full List of Selection Criteria of Projects Financed by the Green Bond
Full List of Selection Criteria of Projects Financed by the Green Bond Environmental Definition of criteria for Categories green projects KPIs projects admissibility category Fight against Increase of Photovoltaic plants for electrical - Net produced electricity from renewable non-fossil climate cha
Slide 34: Full List of Selection Criteria of Projects Financed by the Green Bond
Full List of Selection Criteria of Projects Financed by the Green Bond Environmental Definition of criteria for Categories green projects KPIs projects admissibility category Air quality Improvement of Improve WTE plants efficiency to - Quality of air emissions per treated waste unit per WTE plants
Slide 35: Main Awards
Main Awards The efforts of Hera Group to create sustainable value have been widely recognised by significant awards which certify the actions taken towards the social responsibility, the web communication, the environment and the technology of the new plants Best Urban 3rd place On-line 2nd place To
Slide 36: Green Investment: Separate Waste Collection and Urban Waste Management
Green Investment : Separate Waste Collection and Urban Waste Management Landfills In August 2012, the European Commission Waste-to-energy published a report on the urban waste management in the EU member states Other (Compostable, Based on the most efficient management Reuse, Mechanical systems in E