Slide 1: Analyst Presentation: Interim results at Sept. 30th 2010
Analyst Presentation Interim results at Sept. 30th 2010 1
Slide 2: Index
Index Hera Group At a glance 3 Results 4 Ebitda growth drivers 5 Breakdown by business 6 Capex 10 Financial structure 11 Convertible bond issue 12 Closing remarks 13 2
Slide 3: 9m '10 results at a glance
9m ‘10 results at a glance 9m ‘10 Net profit up by +62.6% underpinned by organic growth. 2010 Ebitda growth (m€) +10.6% +42.2 +41.3 > All businesses positively contributed to Ebitda growth (+10.6%). +6.3 > Net profit at 79.1 m€ (+30% on adjusted basis*) Q1 H1 9m > Capex reduction by 40 m€ 2010 Free
Slide 4: Interim results progressing in line with business plan
Interim results progressing in line with business plan Profit and Loss (m€) M€ 9m '09 % 9m '10 % Ch.% Revenues* 3,121.0 100.0% 2,581.5 100.0% (17.3%) Ebitda 390.1 12.5% 431.4 16.7% +10.6% D&A (196.8) (6.3%) (213.2) (8.3%) +8.3% Ebit 193.3 6.2% 218.2 8.5% +12.9% Financials (85.8) (2.7%) (82.8) (3.2%)
Slide 5: Organic growth achieved in all main businesses
Organic growth achieved in all main businesses 6 00 Ebitda Drivers Ebitda breakdown by business (m€) (m€) 431 gr +51 +6 +11% Ca 390 431.4 4 00 390.1 10.9 350.4 16 (16) 10.9 139.3 129.2 130.2 110.2 Other 96.7 Waste 2 00 94.9 40.4 Water 32.6 Electricity 9m '09 '09 Org. G. New E'14 34.8 Gas One off & S
Slide 6: Waste volume development driven by new treatment capacity
Waste volume development driven by new treatment capacity 9 months results (m€) 9m '09 % 9m '10 % Ch. % Volume treated increased by +6.3%. Revenues 480.3 100.0% 533.3 100.0% +11.0% Operat. costs (257.0) (53.5%) (289.3) (54.2%) +12.5% Personnel (106.6) (22.2%) (113.1) (21.2%) +6.1% Rimini WTE started
Slide 7: Water tariff increase and efficiencies driving results
Water tariff increase and efficiencies driving results 9 months results (m€) M€ 9m '09 % 9m '10 % Ch. % Revenues 356.3 100.0% 365.9 100.0% +2.7% Volume sold decreased by 1.4%. Operat. costs (263.8) (74.0%) (195.0) (53.3%) (26.1%) Personnel (79.4) (22.3%) (79.0) (21.6%) (0.5%) Capitaliz. 83.6 23.5% 1
Slide 8: Gas business confirming remarkable performance
Gas business confirming remarkable performance 9 months results (m€) Lower commodity prices partially off set by M€ 9m '09 % 9m '10 % Ch. % sales volume increase (+6.5%). Revenues 907.8 100.0% 822.0 100.0% (9.5%) Operat. costs (788.4) (86.9%) (664.1) (80.8%) (15.8%) Personnel (45.6) (5.0%) (46.1) (5
Slide 9: Electricity market expansion and enhanced profitability
Electricity market expansion and enhanced profitability 9 months results (m€) Trading revenues more than halved (from M€ 9m '09 % 9m '10 % Ch. % 0.9 to 0.4 b€). Revenues 1,457.9 100.0% 996.2 100.0% (31.7%) Operat. costs (1,425.3) (97.8%) (947.7) (95.1%) (33.5%) Personnel (16.9) (1.2%) (17.1) (1.7%)
Slide 10: Capex in line with expectations
Capex in line with expectations 9 months Capex (m€) Declining capex (-40m€, in line with budget). M€ 9m '09 9m '10 Waste 86.2 67.3 Water 81.5 67.3 Gas 48.8 33.3 Waste: 35m€ related to new WTE. Electricity 27.7 31.4 Other 9.2 10.1 Holding 30.2 32.5 Investments 1.2 2.5 Capex 284.9 244.4 Electricity: 1
Slide 11: Slightly better Net Financial Debt thanks to positive Q3 cash flows
Slightly better Net Financial Debt thanks to positive Q3 cash flows Net Financial Debts (m€) Net Debts 30 Sept. '10 Positive Q2 and Q3 free cash flows As of Jun. 30 '10 (1,970.7) Q3 change +7.7 As of 30 Sept. '10 (1,963.0) of which: Debt structure 33% variable, 67% fixed Short term Debt 162.3 rate.
Slide 12: 130 m€ equity linked bond successfully placed
130 m€ equity linked bond successfully placed Convertible bond placement Convertible rational Amount: 130m€ Gain further financial flexibility Over-Allotment option: 10m€ (up to 11/18/’10) Duration: about 3 year Strengthen balance sheet structure enhancing ratios Interest rate: 1.75% fixed Interest
Slide 13: Closing remarks: Well on track toward end year targets
Closing remarks Well on track toward end year targets 431 m€ EBITDA (+ 41 m€) and Net Profit up +62.6% 244 m€/year of Capex down 40 m€/year vs 9m ‘09, Positive Q3 Free Cash Flow Convertible successfully placed to gain further flexibility to pursue the general corporate purposes and growth opportunit
Slide 14: Q&A
Q&A 14