Ascopiave S.p.a. · MIL:ASC
Ascopiave — The Italian Utilities Conference 2008
47 slides from Ascopiave's conference presentation, Apr 2, 2008
Slide 1: The Italian Utilities Conference 2008
THE ITALIAN UTILITIES CONFERENCE 2008 London, April 2nd 2008 Page 1
Slide 2: Contents
CONTENTS Business Overview Strategy Financial highlights Dividends Page 2
Slide 3: Business Overview
Business Overview Primary business activities Secondary business activities Gas Gas sales to Gas Heat Electricity distribution end customers trading management sales 2007 MAIN FINANCIAL DATA* 2007 MAIN OPERATING DATA Revenues 451,871 No. of gas sale clients 352,623 Vol. of gas sold to end customers
Slide 4: Ascopiave Group structure
Ascopiave Group structure 59.724% Asco Holding S.p.A.* 89% Market 40.276% 51% ACTIVITIES 80% Gas distribution, 51% heating management ETRA ENERGIA Gas distribution 55% COGE CALORE Heating management 100% Gas sales and electricity sales 49% Gas sales 49% Development of gas storage site 15% ITAL GAS S
Slide 5: History
History New opportunities New acquisition Expansion and growth stategy (Bimetano Servizi) through the acquisition of 8 2009 companies Listing on Milan Stock Excange 2008 Expansion of Foundation of gas distribution 2007 BIM Consortium network 2002 2006 New acquisitions 1990 2000 Gas wholsales and (Es
Slide 6: Current position and future tasks
Current position and future tasks THE GAS CHAIN Actual activity National Gas Import of Liquid Production Import Natural Gas Ascopiave is a strong local player focused on down-stream market Regassification of LNG Current strategy and future tasks Transport Storage Strenghtening its position in the do
Slide 7: Italian gas market: down-stream
Italian gas market: down-stream No. of gas sales operator Down-stream market Unbundling of regulated activities - 49% Gas sales market: completely liberalized since 2003 Gas distribution activity: competion for the market (public bid for concessions) Consolidation tendencies No. of gas distribution
Slide 8: Gas distribution: Ascopiave concessions as of December 31th 2007
Gas distribution: Ascopiave concessions as of December 31th 2007 59% of concessions from shareholder municipalities Number Populations* Network (km)** Award from Asco Holding member municipalities 92 632.209 3,742 Concessions from other municipalities 63 399.494 2,931 Total 155 1.031.703 6,673 84% o
Slide 9: Gas distribution: legal framework up-dating
Gas distribution: legal framework up-dating L. n. 222/2007 and L. n. 244/2007 Regulation of the “Call of Tenders” to be provided by the Ministry of Economic Development (jointly with other public authorities). Main issues: 1) Property and value of the assets to be paid to the outgoing concession hol
Slide 10: Gas distribution: VRD breakdown
Gas distribution: VRD breakdown VRD (“Vincolo dei Ricavi della Distribuzione”, i.e. Distribution Revenue Constraint) Maximum cost of distribution activities, including VRD 07-08* €/M management operating costs, depreciation and CO 2007 13,556 remuneration of capital invested, that can be AMM 2007 7,
Slide 11: Gas sales: operating data
Gas sales: operating data Volumes of gas sold (a) (2007) Volumes of gas sold To end customers 813 In network On trading activities 435 Total 1,248 Average annual consumption (b) Mean consumption higher than national average Ascotrade (2007) 2,300 National average (c) (2006) 1,700 % Customer base gro
Slide 12: Gas sales: selling and purchase prices
Gas sales: selling and purchase prices Gas selling prices Domestic clients Obligatory maximum price level set by the Authority of Energy and Gas (CCI indexation in accordance with Aeeg Res. 134/06). Non domestic clients with mid annual consumption (<200,000 scm) Completely free prices; mainly price
Slide 13: Gas sales: selling price
Gas sales: selling price Selling price to a typical domestic customer (annual consumption: 1,500 scm) Price component Eurocent / scm CCI 14% CCI 28,35 QT 3,14 QT QS 1,00 TD 7,98 41% QS QVD 2,21 Price 42,67 TD 26% Consumption taxes 18,07 QVD VAT 10,21 Taxes 28,28 4% Consumption 3% Price + taxes 70,95
Slide 14: Gas sales: review of QVD
Gas sales: review of QVD Review of QVD component of the gas selling price Resolution Aeeg n. 240/07 Review of the ratio for the calculation of the variable components of the QVD component: from 32,07 Euro per client per year to 35,82 Euro per client per year (+11,69%) Since 1st october 2007 Resoluti
Slide 15: Italian gas market: up-stream
Italian gas market: up-stream Up-stream market Strong incumbent players Lack of import infrastructures ITALY Natural gas demand* Source: Eni website Natural gas transported** in Italy (2007 data) Source: Snam Rete Gas Total 83,3 scm/G *Billion of standard cubic meters; **Produced and imported; Sourc
Slide 16: Contents
CONTENTS Business Overview Strategy Financial highlights Dividends Page 16
Slide 17: Strategic guidelines
Strategic guidelines Up-stream integration Participation in the consolidation Growth process Page 17
Slide 18: 2007 Growth Data
2007 Growth Data 2007 GROWTH DATA Volumes of gas sold: From about 0.8 billion (current values) to 1.2 billion of scm; including 2007 new acquisitions the volumes increase to 1.8 billion of scm Significant increase of the customer base: From about 313.000 to over 610.000 end-customers (including 2007
Slide 19: Up-stream integration (1)
Up-stream integration (1) Integration within the gas chain (both mid-stream and up-stream) to ensure gas supply full autonomy and reliability, alongside with an efficient cost structure and a competitive edge on the market Long-term gas supply contracts with international operators Targeted acquisit
Slide 20: Up-stream integration (2)
Up-stream integration (2) p Acquisition of capacity for about 120 Scm/M on TAG pipeline 1 Gas Gas Import Import p Signing an agreement with Sonatrach for 500 Scm/M of gas p Wholesales trading Gas Gas wholesale wholesale and and p Foreign trading 2 trading trading p Autonomous structuring of the oper
Slide 21: 1 - Acquisition of capacity on TAG pipeline
1 - Acquisition of capacity on TAG pipeline Key characteristics p Acquisition of capacity for about 120 Scm/M on TAG pipeline TAG Source: gie.waxinteractive3.com Page 21
Slide 22: 2 - Agreement with Sonatrach
2 - Agreement with Sonatrach Key characteristics p Purchase of 500 Smc/M of gas import through GALSI pipeline from 2010 p Obtained ~ 60% of current volumes of gas sold p Duration of the agreement: 15 years from GALSI 2010 National Section p One of 5 italian gas companies to GALSI participate in the
Slide 23: 2 - Gas wholesale and trading (1)
2 - Gas wholesale and trading (1) Objectives of the new activities Entering new segments of the value chain capturing extramargins Increasing and stabilizing gas sale volumes Maximizing margin on traditional activities Page 23
Slide 24: 2 - Gas wholesale and trading (2)
2 - Gas wholesale and trading (2) Foreign trading ~ 50 million of scm – Y 2008 Import spot ~ 400 million of scm – Y 2008-2009 Autonomous management of logistic operations ~ 500 million of scm – Y 2008-2009 Trading at “PSV” ~ 300 million of scm – Y 2008-2009 Wholesales ~ 200 million of scm – Y 2008-2
Slide 25: 3 - Gas storage
3 - Gas storage Ital Gas Storage acquisition completed in May 2006 Cornegliano is active in gas storage in Cornegliano ITALY LOMBARDY Storage technical characteristics Working gas (Scm/M) 590-1,010 Cushion gas (Scm/M) 900 Maximum storage capacity (Scm/M) 1,910 Maximum daily use (Scm/M) 16.5 Page 25
Slide 26: 4 - Import infrastructures and new projects
4 - Import infrastructures and new projects PIPELINE 31 Gmc Plan Capacity Operator Netherlands/ +6.5 Gmc Norway GALSI 8/10 Sonatrach, Edison, Enel, Wintershall, Hera 18 Gmc PIPELINE Gas Natural Slovenia IGI 8 Edison, Depa Trieste 1,5 Gmc Greenstream 2 Eni 8 Gmc ENI Panigaglia Rep. TAG 3,2 +3,3 Eni E
Slide 27: Growth in the gas down-stream market (1)
Growth in the gas down-stream market (1) Growth in size through a significant expansion of its customer base p Participation in competitive bidding for the award of contracts to manage the gas distribution service Increase Increase number number of of clients and clients and p An integrated service
Slide 28: Growth in the gas down-stream market (2)
Growth in the gas down-stream market (2) Deals Customers Gas sold Acquisition of a 49% stake in Estenergy + 242,000 + 449 scm/M Acquisition of 49% stake in ASM Set + 24,500 + 53 scm/M Total concluded deals + 266,500 + 502 scm/M Ascopiave - sales to customer base + 352,623 + 813 scm/M Ascopiave after
Slide 29: Downstream strategy
Downstream strategy “Triveneto” (BELLUNO) (TRIESTE) ITALY (PADUA) “Triveneto” natural gas market (2006) Number of gas sale customers 2,500,000 + (ROVIGO) Volumes of gas distributed (Scm/M) 5,784 Municipalities with only gas sales activity Municipalities with gas sales and gas distribution activities
Slide 30: Contents
CONTENTS Business Overview Strategy Financial highlights Dividends Page 30
Slide 31: Financial highlights: income statement
Financial highlights: income statement (Thousand of Euro) 2007 2006 Chg Chg % Revenues 451.871 318.105 133.767 +42,1% EBITDA 45.676 40.405 5.272 +13,0% EBIT 33.860 29.150 4.710 +16,2% EBT 34.798 27.286 7.512 +27,5% Net income 21.764 16.381 5.383 +32,9% Page 31
Slide 32: Financial highlights: balance sheet
Financial highlights: balance sheet (Thousand of Euro) 31/12/2007 31/12/2006 Chg Chg % Fixed assets 369.785 297.336 72.449 +24,4% Net working 108.112 (15.975) 124.088 -776,8% capital Total capital 477.897 281.361 196.537 +69,9% employed Shareholders 371.068 368.902 2.166 +0,6% equity Net financial 1
Slide 33: Volumes of gas sold
Volumes of gas sold Volumes of gas sold (Million of standard cubic meters) ∆ = +22,3 ∆ = +22,3 Page 33
Slide 34: Number of gas sales customers
Number of gas sales customers Number of gas sales customers ∆ = +39.268 Page 34
Slide 35: Volumes of gas on trading activities
Volumes of gas on trading activities Gas trading activities (Million of standard cubic meters) Page 35
Slide 36: Volumes of gas distributed
Volumes of gas distributed Gas distributed Gas distributed: hystorical trend (Million of standard cubic meters) (Million of standard cubic meters) ∆ = -56,7 Page 36
Slide 37: Revenues bridge
Revenues bridge Revenues bridge (Thousands of Euro) ∆ = +133.767 Page 37
Slide 38: Gross margin on gas activities
Gross margin on gas activities (Thousand of Euro) 2007 2006* Chg Chg % Revenues from gas sales 299.866 286.705 13.161 +4,6% Revenues from trading 114.973 - 114.973 n.a. activities Gas purchase costs (355.698) (232.502) (123.196) +53,0% Distribution costs to third (5.467) (623) (4.844) +777,1% partie
Slide 39: Gross margin bridge
Gross margin bridge Gross margin bridge (Thousands of Euro) ∆ = +107 Page 39
Slide 40: EBITDA bridge
EBITDA bridge EBITDA bridge (Thousands of Euro) ∆ = +5.272 Cost of personnel: + € 1,2 Mln Consulting services: +€ 1,3 Mln Other changes: + € 0,6 Mln Page 40
Slide 41: Personnel
Personnel Cost of personnel No. of employees (Thousands of Euro) ∆ = +875 ∆ = +12 Increases in the number of employees for 12 persons as balance of 30 assumptions and 18 cessations “One-shot” payment for the contractual delay indemnity provided by the renewal of labour contract for the sector of gas
Slide 42: Capex breakdown
Capex breakdown Capex breakdown (Thousands of Euro) ∆ = +823 Other investments 2007: long term transportation contract: € 1.8Mln purchase of energy efficiency certificates : € 0.7Mln buildings construction in progress: € 1.1Mln heating management: € 0.5Mln hardware, software: € 0.7 Mln other investm
Slide 43: Length of the gas distribution network
Length of the gas distribution network Length of the gas distribution network (km) ∆ = +43 * *Escluding lenght of gas distribution network of the subsidiary Asm DG (~ 270 km) Page 43
Slide 44: Net Financial Position
Net Financial Position ∆ = -194.4 (Million of Euro) Page 44
Slide 45: Acquisitions
Acquisitions (Thousand of Euro) Enterprise Net financial Equity value Acquisitions Value position (price) Estenergy (49%) 50.832 (10.994) 39.838 Asm Set (49%) 3.205 134 3.340 Asm Dg (100%) 15.554 (416) 15.138 Total 69.591 -11.275 58.316 paid 48.104 due 10.212 Page 45
Slide 46: Contents
CONTENTS Business Overview Strategy Financial highlights Dividends Page 46
Slide 47: Dividends
Dividends 2007 dividend: Euro 0,085 per share* Detachment date: May 12th 2008 Payment date: May 15th 2008 on placement price = 4,7% Dividend yield: on 28th march 2008 price = 5,8% Payout ratio**: > 90% *Interim dividend 2007, paid on 15th November 2007: Euro 0,025 per share; **Dividend on Group Net