Enel SpA · MIL:ENEL
Enel SpA — H1 2015 Earnings Presentation
63 slides from Enel SpA's earnings presentation, Jul 30, 2015
Slide 1: 1H 2015 Results
1H 2015 Results July 30, 2015 Enel
Slide 2: Highlights of the period
1H 2015 results Highlights of the period Enel Group Investor Relations Resilient EBITDA in a worse market environment Latam and Renewables: +15% and +6% respectively ~40% of growth plan already addressed with 7.8 €bn of assets in execution ~60% growth EBITDA at 2017 secured Latam reorganization: fin
Slide 3: Operational highlights
1H 2015 results Operational highlights Enel Group Investor Relations Installed capacity (GW) Net production (TWh) -8% +3% 96.1 140 88.8 136 ~37% Load factor ~33% FY2014 1H 2015 1H 2014 1H 2015 Electricity distributed (TWh) Number of customers1 (mn) +1% +3% 205 204 22.1 21.5 # of end users 60.6 61.1
Slide 4: Financial highlights (€mn)
1H 2015 results Financial highlights (€mn) Enel Group Investor Relations Revenues EBITDA +4% +2% 37,632 7,961 7,847 36,101 1H 2014 1H 2015 1H 2014 1H 2015 Group net income Net debt1 +10% +7% 1,833 39,849 37,383 1,665 FY 2014 1H 2015 1H 2014 1H 2015 1. Net of assets held for sale (-620€mn mainly for
Slide 5: Key pillars of strategic plan
1H 2015 results Key pillars of strategic plan Enel Group Investor Relations 1 Cash costs: efficiencies offsetting growth and Operational efficiencies inflation Acceleration of capacity closure in Italy 2 2015 growth EBITDA and ~60% of 2017 growth EBITDA Industrial growth already secured Spread >200b
Slide 6: Industrial growth: achievement in the period
1H 2015 results Industrial growth: achievement in the period Enel Group Investor Relations Networks Retail Renewables Conventional generation ~+0.3 mn end users +0.4 mn new customers in +0.3 GW in Mexico and Chile Project pipeline completely ~+0.8 mn smart meters power & gas free market + 90% YoY of
Slide 7: Key pillars of strategic plan (€bn)
1H 2015 results Key pillars of strategic plan (€bn) Enel Group Investor Relations Industrial growth Growth capex 1H15: by geography Growth capex 1H15: by business Italy 11% Renewables Latam RoW 1 51% 9% Growth capex 19% 1.7 52% +30% YoY Networks 1.7 7% Iberia 7% North America 29% 14% Generation 1% R
Slide 8: Industrial growth: EBITDA (€bn)
1H 2015 results Industrial growth: EBITDA (€bn) Enel Group Investor Relations ~90% of additional EBITDA in 1H15 Growth EBITDA by in regulated and quasi regulated Growth EBITDA business (1H15) activities Already covered Renewables 1.3 Spread over WACC > 200 bps by projects in execution 39% 40% 0.15 ~
Slide 9: Key pillars of strategic plan
1H 2015 results Key pillars of strategic plan Enel Group Investor Relations 1 ~800 €mn already cashed in Slovenske Elektrarne ~ 2 €bn under execution • two stage transaction • minority stake sale by year end • final exit upon completion of two new nuclear units • expected signing in the 4th quarter
Slide 10: Latam reorganization: new corporate structure
1H 2015 results Latam reorganization: new corporate structure Enel Group Investor Relations Current Structure Post Transaction ENEL SpA ENEL SpA 100% 100% Enel Enel Iberoamérica Iberoamérica 60,6% >50.0% 60.6% 99.1% 60.0% ENERSIS ENERSIS Chilectra Endesa Chile Americas1 Enersis (CHI) Chile (EOC) 99,
Slide 11: Corporate structure reorganization: business overview
Corporate structure reorganization Business overview 1 Enel Group Investor Relations Enersis Chile Enersis Americas Capacity by technology: Capacity by technology2: Coal • Installed capacity: • Installed capacity: 2% Coal Operating 6,351 MW 10% 10,517 MW Operating data • Distribution clients: • Dist
Slide 12: Indicative transaction timeline
1H 2015 results Indicative transaction timeline Enel Group Investor Relations Preparation of transaction reports Spin-off process: ~ 3 months Merger process: ~ 6 months BoDs to decide on EGMs to vote spin- Merger of BoDs EGMs to the execution of the offs2 and present Spin-offs Enersis defined the Tr
Slide 13: Market context in the period
1H 2015 results Market context in the period Enel Group Investor Relations Electricity demand 1H14 1H15 +3.7% 1.9% +2.5% +0.4% -0.3% -1.0% -1.0% -2.8% Italy Spain Latam 1 East Europe2 Spot power prices €/MWh 1H14 1H15 215.5 117.5 120.5 117.5 99.4 71.0 49.5 49.8 48.5 31.9 Italy Spain Chile Colombia B
Slide 14: Forward sales
1H 2015 results Forward sales Enel Group Investor Relations Italy Spain Latam 100% 80% 80% 70% 50% 25% 2015 2016 2015 2016 2015 2016 55 48 58 56 69 73 Hedged Average price €/MWh Unhedged 13
Slide 15: Operational highlights
1H 2015 results Operational highlights Enel Group Investor Relations Generation capacity (GW) Group production (TWh) -8% +3% +5.6 -2.8 +0.9 139.6 96.1 0.0 135.8 +0.1 -6.6 -1.0 +0.3 88.8 88.8 88.8 FY 2014 Nuclear Thermal Hydro 1 Other 1H 2015 1H 2014 Nuclear Thermal Hydro 1 Other 1H 2015 Renewables R
Slide 16: Operational highlights
1H 2015 results Operational highlights Enel Group Investor Relations Electricity distributed (TWh) Average end users (mn) +1% +0.5 +0.6 +0.3 205 +0.4 +0.1 204 -0.8 +0.9 60.6 61.1 88.8 1H 2014 Italy Iberia Latam Eastern 1H 2015 1H 2014 Latam RoW 1H 2015 Europe 15
Slide 17: Reported and ordinary EBITDA evolution
1H 2015 results Reported and ordinary EBITDA evolution Enel Group Investor Relations +2% ~0% 7,847 -1321 7,715 80 -107 7,688 2732 7,961 1H14 reported Extraordinary 1H14 ordinary Gross margin Opex 1H15 ordinary Extraordinary 1H15 reported items items 1. 1H14: +50 €mn remeasurement SE Hydropower fair
Slide 18: Operational efficiencies: cash cost (€mn)
1H 2015 results Operational efficiencies: cash cost (€mn) Enel Group Opex1 Investor Relations +3% -1% 4,167 4,282 4,259 4,274 Cash Cost 115 15 +4% +2% 5,390 5,505 5,605 5,620 115 15 1H14 One Off 1H 2014 1H 2015 One Off 1H15 Reported Adjusted Adjusted Reported Maintenance capex2 +10% 1,346 1H14 One O
Slide 19: Operational efficiencies: opex (€mn)
1H 2015 results Operational efficiencies: opex (€mn) Enel Group Investor Relations +3% -1% 4,259 15 4,274 4,167 115 4,282 2,311 2,334 Personnel costs 2,270 2,265 External costs 2,387 2,445 2,388 2,427 Capitalized costs -490 -429 -439 -487 1H 2014 One-offs 1H 2014 1H 2015 One-offs 1H 2015 Reported Ad
Slide 20: Focus on efficiency (€bn)
1H 2015 results Focus on efficiency (€bn) Enel Group Investor Relations Opex evolution1 Opex by business Conventional -5% k€/MW Generation -1% 44.6 42.5 0.08 -0.13 FY 2014 LTM 0.03 Networks -1% €/client 4.28 4.26 58.4 58.1 FY 2014 LTM Renewables -2% k€/MW 76.1 74.5 FY 2014 LTM 1H 2014 Growth CPI & F
Slide 21: Operational efficiency: focus on maintenance capex (€mn)
1H 2015 results Operational efficiency: focus on maintenance Enel Group capex (€mn) Investor Relations Conventional Generation +27% Maintenance capex1 392 308 +10% 1,346 1H14 1H15 1,223 Networks +5% 767 805 1H14 1H15 1H14 1H15 FY 2015 maintenance capex slightly decreasing year on year 1. Gross Capex
Slide 22: Group ordinary EBITDA (€mn)
1H 2015 results Group ordinary EBITDA (€mn) Enel Group Investor Relations +0% 7,715 -116 +306 +57 -238 7,688 -36 1 1H 2014 Global Global Global Retail Other 1H 2015 Infrastructure Generation & Renewables & Networks Trading 1. Other includes Service and Holding 21
Slide 23: Group ordinary EBITDA (€mn)
1H 2015 results Group ordinary EBITDA (€mn) Enel Group Investor Relations 0% 7,715 +183 -115 +57 -21 7,688 -403 +272 1H 2014 Italy Iberia Latam East Renewables Other 1H 2015 Europe 22
Slide 24: From ordinary EBITDA to Net ordinary Income (€mn)
1H 2015 results From ordinary EBITDA to Net ordinary Income(€mn) Enel Group Investor Relations 7,688 2,877 4,811 1,269 1,184 754 1,604 Ordinary D&A EBIT Net financial Income taxes Minorities Group net EBITDA expenses and ordinary other 1 Income 0% yoy 0% yoy -1% yoy -22% yoy2 +6% yoy +36% yoy +3% yo
Slide 25: Debt and financial expenses
1H 2015 results Debt and financial expenses Enel Group Investor Relations Gross and Net Debt (€mn) Net Financial expenses on debt (€mn) -5% -4% 6.0% 5.0% 4.8% 57,032 5.0% 54,347 13,088 9,427 1,375 4.0% 6,561 5,071 1,323 3.0% Net debt 39,849 Financial receivables 2.0% 37,383 Cash 1.0% FY2014 1H 2015
Slide 26: Net free cash flow (€mn)
1H 2015 results Net free cash flow (€mn) Enel Group Investor Relations 7,688 -647 -1,763 -635 -1,620 3,023 -3,092 -69 -1,987 -2,056 2 3 4 Provisions 1 Ordinary Working Income Financial FFO Capex Free Net dividend Net free EBITDA capital taxes expenses cash paid cash change and paid and other flow
Slide 27: Net debt evolution (€mn)
1H 2015 results Net debt evolution (€mn) Enel Group Investor Relations +2,4662 +1,4163 Jun 30, 2015 on Dec 31, Extraordinary Jun 30, Asset held continuing 2014 Net free cash flow activities 2015 Fx effect for sale operations 37,383 6201 1 38,003 39,419 853 39,849 -2,056 640 -1,283 Close to 39.2 €bn
Slide 28: Closing remarks
1H 2015 results Closing remarks Enel Group Investor Relations Latam restructuring: defined timetable with expected completion in 2H16 Slovenske Elektrarne: preferred bidder to be selected soon Transaction framework already defined, first stake sale by yearend ~40% of growth plan already addressed wi
Slide 29: Financial and operational annexes
Financial and operational annexes
Slide 30: Market context in the period
1H 2015 results Market context in the period Enel Group Investor Relations Brent $/bbl Coal $/ton CO2 €/ton 109 77 7.2 60 7 63 58 60 5.9 1H14 1H15 FY15E 1H14 1H15 FY15E 1H14 1H15 FY15E Average FX USD/€ Average FX CLP/€ Average FX BRL/€ 1.37 759 3.31 1.12 1.13 3.15 718 694 3.03 1H14 1H15 FY15E 1H14 1
Slide 31: Capex (€mn)
1H 2015 results Capex1 (€mn) Enel Group Investor Relations By activity By business By region Growth Networks 1.746 1.132 Iberia 37% Latam 44% 12% 56% 3,092 3,092 3,092 44% Generation2 29% 31% 24% 893 Italy 11% Renewables East Europe2 973 5% 4% 2% 1% Other North Maintenance Retail Other America 1.346
Slide 32: Gross debt maturity profile and structure (€bln)
Financial annexes: 1H 2015 Gross debt maturity profile and structure (€bln) Enel Group Investor Relations Debt maturity Interest rate composition Floating Maturity 22% < 2017 24% 76% 78% Fixed + Maturity Hedged > 2017 Currency composition1 Third party debt composition Other 2% East Europe 1% 36% Ene
Slide 33: Group recurring EBITDA analysis (€mn)
1H 2015 results Group recurring EBITDA analysis (€mn) Enel Group Investor Relations By responsibility By business East Europe Latam Networks 392 1,437 18% 44% 5% 24% Italy2 7,9611 Iberia 7,9611 3,137 39% 1,969 28% 14% Renewables Generation 13% 14% Renewables 1,078 Retail4 Regulated and quasi-regulat
Slide 34: EBITDA Global Infrastructure & Networks (€mn)
1H 2015 results EBITDA Global Infrastructure & Networks (€mn) Enel Group Investor Relations -3% 3,655 -288 +149 -1 3,539 +24 Italy Italy 2,095€mn 1,807 €mn Iberia Iberia 882€mn 906 €mn Latam Latam 558€mn 707 €mn East Europe East Europe 120 €mn 119 €mn 1H14 Italy Iberia Latam East Europe 1H15 33
Slide 35: EBITDA Global Generation & Trading (€mn)
1H 2015 results EBITDA Global Generation & Trading (€mn) Enel Group Investor Relations +21% +622 +69 -114 2,247 1,850 -180 Italy Italy 558 €mn2 738 €mn1 Iberia Iberia 33 €mn 655 €mn Latam Latam 705 €mn 774 €mn East Europe East Europe 374 €mn 260 €mn 1H14 Italy Iberia Latam East Europe 1H15 1. Net of
Slide 36: EBITDA Renewables (€mn)
1H 2015 results EBITDA Renewables (€mn) Enel Group Investor Relations +21% 889 +59 +81 +49 1,078 145 194 85 166 North America Latin America 659 Europe 1 7181 1H14 Europe Latin North America 1H15 America 1. Net of extraordinary items recorded in 2015 equal to +132 €mn 35
Slide 37: EBITDA Italy (€mn)
1H 2015 results EBITDA Italy (€mn) Enel Group Investor Relations -9% 3,449 -180 -288 +134 +22 3,137 Generation Generation 738 €mn 558 €mn Networks Networks 2,095 €mn 1,807 €mn Retail Retail 560 €mn 694 €mn Other Other 56 €mn 78 €mn 1H14 Generation & Networks Retail Services 1H15 Trading 36
Slide 38: EBITDA Latam (€mn)
1H 2015 results EBITDA Latam (€mn) Enel Group Investor Relations +14% +149 -35 1,437 1,254 +69 Peru 239 €mn Peru Colombia 207 €mn 502 €mn Colombia 522 €mn Chile 313 €mn Chile 228€mn Brazil 285 €mn Brazil 309 €mn Argentina Argentina 98€mn -12€mn 1H14 Generation & Networks Other 1H15 Trading 37
Slide 39: EBITDA Iberia (€mn)
1H 2015 results EBITDA Iberia(€mn) Enel Group Investor Relations +16% +622 +24 -371 -3 1,969 1,697 Generation Generation 655 €mn 33 €mn Distribution 882 €mn Distribution 906 €mn Retail 761 €mn Retail Other 390 €mn 21 €mn Other 18€mn 1H14 Generation & Networks Retail Other 1H15 Trading 38
Slide 40: EBITDA East Europe (€mn)
1H 2015 results EBITDA East Europe (€mn) Enel Group Investor Relations -23% 507 -91 -9 -19 4 392 Russia 186 €mn Russia 95 €mn Romania 147 €mn Romania 138 €mn Slovakia 186 €mn Slovakia 167 €mn Other -12€mn Other -8€mn 1H14 Russia Romania Slovakia Other 1H15 39
Slide 41: EBITDA matrix (€mn)
1H 2015 results EBITDA matrix (€mn) Enel Group Investor Relations Global Global Services & Generation & Infrastructure & Renewables Retail TOT Other Trading Networks 1H15 1H14 1H15 1H14 1H15 1H14 1H15 1H14 1H15 1H14 1H15 Italy 558 738 1,807 2,095 - - 694 560 78 56 3,137 Iberia 655 33 906 882 - - 390
Slide 42: Debt Structure by Instrument
Financial annexes: 1H 2015 Debt Structure by Instrument Enel Group Investor Relations Third Parties view Eastern Debt by instrument Enel Spa EFI Italy Iberia Latam Renewables Europe & Total Other Bonds 17.65 19.30 - 0.13 3.77 - 0.36 41.21 Bank Loans - - 3.49 0.38 0.41 2.90 0.40 7.58 Tax Partnership
Slide 43: Debt maturity coverage
Financial annexes: 1H 2015 Debt maturity coverage Enel Group Investor Relations ~27.4 ~22.4 Long term committed credit lines1 ~13.0 ~8.2 ~4.8 ~7.0 ~5.1 ~1.9 Short term ~3.5 Cash ~9.4 Long term ~4.7 1H 2015 < 2H 2016 2H 2016 2017 2018 2019 After 2019 1. Lines with maturities after June 2016 (includin
Slide 44: Balance sheet
1H 2015 Balance sheet Enel Group Investor Relations FY14 €mn 1H15 % restated Net financial debt 39,849 37,383 6.6% Shareholders’ equity 53,380 51,145 4.4% Net capital employed 93,229 88,528 5.3% 43
Slide 45: Italy
1H 2015 Italy Enel Group Investor Relations Generation & Trading Infrastructure & Network Retail Other and Ellision TOTAL 1H14 1H14 1H14 1H14 1H14 €mn 1H15 % 1H15 % 1H15 % 1H15 % 1H15 % restated restated restated restated restated Revenues 11,318 10,384 9.0% 3,532 3,631 -2.7% 7,493 7,923 -5.4% -3,37
Slide 46: Iberia
1H 2015 Iberia Enel Group Investor Relations Generation & Trading Infrastructure & Network Retail Other TOTAL 1H14 1H14 1H14 1H14 1H14 €mn 1H15 % 1H15 % 1H15 % 1H15 % 1H15 % restated restated restated restated restated Revenues 3,041 2,301 32.2% 1,309 1,276 2.6% 7,924 7,746 2.3% -2,075 -1,420 -46.1%
Slide 47: Latam
1H 2015 Latam Enel Group Investor Relations 1H14 €mn 1H15 % restated Revenues 5,406 4,492 20.3% EBITDA 1437 1254 14.6% EBIT 948 804 17.9% Capex 791 519 52.4% Headcount¹ 12,422 12,301 1.0% 1. Data refers to FY2014 46
Slide 48: Focus on Latam: Chile
1H 2015 - Focus on Latam Chile Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 1H14 1H14 1H14 1H14 €mn 1H15 % 1H15 % 1H15 % 1H15 % restated restated restated restated Revenues 1,040 746 39.4% 580 498 16.5% 36 34 5.9% 1,656 1,278 29.6% EBITDA 210 117 79.5% 123
Slide 49: Focus on Latam: Brazil
1H 2015 - Focus on Latam Brazil Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 1H14 1H14 1H14 1H14 €mn 1H15 % 1H15 % 1H15 % 1H15 % restated restated restated restated Revenues 190 259 -26.6% 1,357 1,115 21.7% -3 -2 50% 1,544 1,372 12.5% EBITDA 83 103 -19.4% 2
Slide 50: Focus on Latam: Colombia
1H 2015 - Focus on Latam Colombia Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 1H14 1H14 1H14 1H14 €mn 1H15 % 1H15 % 1H15 % 1H15 % restated restated restated restated Revenues 456 458 -0.4% 594 557 6.6% 1 0 1,051 1,015 3.5% EBITDA 295 314 -6.1% 215 208 3.4%
Slide 51: Focus on Latam: Peru
1H 2015 - Focus on Latam Peru Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 1H14 1H14 1H14 1H14 €mn 1H15 % 1H15 % 1H15 % 1H15 % restated restated restated restated Revenues 283 253 11.9% 315 255 23.5% 0 0 598 508 17.7% EBITDA 145 131 10.7% 94 76 23.7% 0 0 23
Slide 52: Focus on Latam: Argentina
1H 2015 - Focus on Latam Argentina Enel Group Investor Relations Generation & Trading Infrastructure & Network Other TOTAL 1H14 1H14 1H14 1H14 €mn 1H15 % 1H15 % 1H15 % 1H15 % restated restated restated restated Revenues 134 109 22.9% 422 208 1 2 -50% 557 319 75% EBITDA 42 40 5.0% 57 -53 -1 1 98 -12
Slide 53: Renewables
1H 2015 Renewables Enel Group Investor Relations 1H14 €mn 1H15 % restated Revenues 1,593 1,365 16.7% EBITDA 1078 889 21.3% EBIT 697 618 12.8% Capex 973 641 51.8% Headcount¹ 4,157 3,609 15.2% 1. Data refers to FY2014 52
Slide 54: East Europe
1H 2015 East Europe Enel Group Investor Relations Slovakia Russia Romania Other TOTAL 1H14 1H14 1H14 1H14 1H14 €mn 1H15 % 1H15 % 1H15 % 1H15 % 1H15 % restated restated restated restated restated Revenues 1,172 1,217 -3.7% 547 767 -28.7% 497 515 -3.5% 158 132 19.7% 2,374 2,631 -9.8% EBITDA 167 186 -1
Slide 55: Other
1H 2015 Other Enel Group Investor Relations Hoding Upstream TOTAL 1H14 1H14 1H14 €mn 1H15 % 1H15 % 1H15 % restated restated restated Revenues 281 309 -9.1% 3 81 -96.3% 284 390 -27.2% EBITDA -49 -21 -3 71 -52 50 EBIT -62 -35 77.1% -3 70 -65 35 Capex 3 2 50.0% 13 4 16 6 Headcount¹ 1,567 1,289 21.6% 47
Slide 56: Capex by business area (€mn)
1H 2015 Capex by business area (€mn)1 Enel Group Investor Relations +14,2% 2,837 16 n.s. 2,485 6 973 +51.8% 641 S&H Renewables 519 Latam 791 +52.4% Iberia 327 East Europe 356 +8.9% Italy 422 85 -79.9% 570 616 +8.1% 1H14 1H15 1. Continuing operations, gross of contributions 55
Slide 57: Production mix (TWh)
1H 2015 results: operational annexes Production mix (TWh) -3.9% Enel Group Investor Relations 35.9 34.5 0.5% 0.4% 7.1% 8.6% Group production mix 47.0% 51.2% Italy +2.8% 9.7% 10.6% 135.8 35.7% 139.6 29.2% 10.5% 10.1% 12.8% 14.1% 1H14 1H15 27.2% 28.9% +5.2% 14.5% 14.1% 7.8% 8,3% 99.9 105.1 27,2% 14.1%
Slide 58: Group total net installed capacity
1H 2015 Group total net installed capacity1 Breakdown by source and location Enel Group Investor Relations Large Hydro Other Nuclear Coal CCGT Oil&Gas TOTAL MW Hydro EGP renewables ST/OCGT 10,892 1,512 1,662 - 6,478 5,199 5,066 30,810 Italy 4,721 43 1,793 3,318 5,305 5,445 2,417 23,042 Iberia 8,815
Slide 59: Group total net production
1H 2015 Group total net production1 Breakdown by source and location Enel Group Investor Relations Large Hydro Other Nuclear Coal CCGT Oil&Gas TOTAL GWh Hydro EGP renewables ST/OCGT Italy 6,630 3,466 3,653 - 17,660 2,959 142 34,510 Iberia 4,680 51 2,266 12,912 11,330 3,335 3,075 37,649 Latam 15,367
Slide 60: Enel Green Power net installed capacity
1H 2015 Enel Green Power net installed capacity: Breakdown by source and location Enel Group Investor Relations Hydro Geothermal Wind Other TOTAL MW Italy 1,513 761 720 139 3,133 Iberia 43 - 1,741 52 1,836 Latam 732 - 1,088 168 1,988 Romania - - 498 36 534 North America 318 72 1,665 28 2,083 Rest of
Slide 61: Enel Green Power net production
1H 2015 Enel Green Power net production Breakdown by source and location Enel Group Investor Relations Hydro Geothermal Wind Other TOTAL GWh Italy 3,466 2,876 691 82 7,115 Iberia 51 - 2,157 109 2,317 Latam 1,773 - 1,209 119 3,101 Romania - - 714 22 736 North America 475 209 2,875 23 3,582 Rest of Eu
Slide 62: Contact us
Contact us Enel Group Investor Relations Investor Relations Team (investor.relations@enel.com) Tel. +39 06 8305 7975 Visit our website at: www.enel.com (Investor Relations) 61
Slide 63: Disclaimer
Disclaimer Enel Group Investor Relations This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements a