Slide 1: H1 2016 Financial Results
H1 2016 FINANCIAL RESULTS 28 July 2016
Slide 2: An other overall positive performance
An other overall positive performance H1 2016 positive growth Ebitda H1 track record (%) (m€) +12.8% 470 451 459 432 358 +5.1% 344 314 +2.4% 271 258 210 211 155 146 (2.3%) Revenues Ebitda Ebit Net profit '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Net profit up double digit GRUPPOHERA 01
Slide 3: Solid operating, financial and tax performances
Solid operating, financial and tax performances + H1 RESULT HIGHLIGHTS (M€) • Revenues (-54m€) affected by WACC cut, 1H ‘15 1H ‘16 Energy prices, lower gas supply volumes Revenues 2,368.9 2,314.7 (2.3%) and by market expansion in Special Waste EBITDA 459.1 470.1 +2.4% Ebitda margin 19.4% 20.3% • Ebi
Slide 4: Ebitda underpinned by M&A
Ebitda underpinned by M&A H1 EBITDA growth drivers (M€) • H1 Ebitda growth achieved despite WACC cut, lower (expected) incentives (-9.3m€ from +2.4% Cip6 and G.C.) and still low operations in landfills 470.1 +9.0 459.1 +14.6 • Organic growth, enhanced by regulated revenues (change in “time-lag” in r
Slide 5: Waste: Stable results although lower incentives
WASTE: Stable results although lower incentives H1 Waste Ebitda (M€) 150.0 119.8 +4.2 +8.6 116.5 • Positive trends in market prices/demand 100.0 (9.3) confirmed (6.8) 50.0 • Waste Recycling and Geo Nova performed in line with planning 0.0 H1 '15 Prices M&A Incentives & PUN Landfills & Other H1 '16 •
Slide 6: Networks: tackling with WACC cut
NETWORKS: tackling with WACC cut H1 Networks Ebitda (M€) +1.8% 212.6 216.4 +16.3 • H1 ‘16 Ebitda in line with H1 ‘15 offsetting Wacc (12.5) cut thanks to various initiatives • Electricity distribution accounts one off on revenues due to realign on “time-lag” in returns on H1'15 Wacc cut Org. G. H1'1
Slide 7: Energy: Better and better
ENERGY: Better and better H1 Energy Ebitda (M€) +9.8% • Energy supply expansion in electricity +11.2 +0.4 128.6 markets approaching 2.3 million clients 117.1 (0.9m EE customers and 1.3m gas customers) • Power prices reduction and higher competitive pressure has not affected H1 '15 Org. G. M&A H1 '16
Slide 8: Free cash flows increase
Free cash flows increase H1 cash flows (M€) +308 • Cash flows highlight capex for 152 m€ (+9% H/H) +41 • Enhanced Free cash generation (184m€ vs +184 138m€ of H1 ‘15) covered dividend (13) payments, Minorities and Acquisitions (152) (9.3m€) • Debt reduced to 2,624m€ (from 2,652 m€ as of 31st Decembe
Slide 9: Closing remarks – Q&A session
Closing remarks – Q&A session • Operating, financial and tax management enhanced value creation to shareholders (Net Profit up double digit) • M&A and integration process contributed to growth and value creation once again • Enhanced cash generation funded dividend payments (DPS of 9 c€ paid in June
Slide 10: Annex
Annex With further information Investor Relations IR@gruppohera.it
Slide 11: Waste: financial highlights breakdown
Waste: financial highlights breakdown Almost stable results awaiting new landfill capacity (m€) Q1 2015 Q1 2016 Ch. % Revenues 214.7 235.4 +9.6% Ebitda 64.9 62.4 (3.8%) (m€) H1 2015 H1 2016 Ch. % Ebitda margin 30.2% 26.5% Revenues 430.1 491.4 +14.2% Ebitda 119.8 116.5 (2.8%) (m€) Q2 2015 Q2 2016 Ch.
Slide 12: Water: financial highlights breakdown
Water: financial highlights breakdown Tackling with WACC cut exploiting efficiencies improvement (m€) Q1 2015 Q1 2016 Ch. % Revenues 182.6 179.4 (1.7%) Ebitda 50.5 49.8 (1.3%) (m€) H1 2015 H1 2016 Ch. % Ebitda margin 27.7% 27.8% Revenues 377.4 374.1 (0.9%) Ebitda 107.6 106.6 (0.9%) (m€) Q2 2015 Q2 2
Slide 13: Gas: financial highlights breakdown
Gas: financial highlights breakdown Results account WACC cut and mild winter effect (m€) Q1 2015 Q1 2016 Ch. % Revenues 632.1 557.9 (11.7%) Ebitda 128.4 128.7 +0.2% (m€) H1 2015 H1 2016 Ch. % Ebitda margin 20.3% 23.1% Revenues 891.4 793.8 (11.0%) Ebitda 172.5 162.0 (6.0%) (m€) Q2 2015 Q2 2016 Ch. %
Slide 14: Electricity: financial highlights breakdown
Electricity: financial highlights breakdown Electricity: regulatory changes and better power gen. mgmt (m€) Q1 2015 Q1 2016 Ch. % Revenues 391.4 362.9 (7.3%) Ebitda 29.3 33.2 +13.3% (m€) H1 2015 H1 2016 Ch. % Ebitda margin 7.5% 9.1% Revenues 718.1 697.7 (2.8%) Ebitda 49.6 76.3 +53.9% (m€) Q2 2015 Q2