Slide 1: Q1 financial results
Q1 financial results Growing in soundness 13 May 2015 – Analyst Presentation
Slide 2: Trends once again confirmed in Q1 '15
Trends once again confirmed in Q1 ‘15 Positive Q1 growth Q1 Ebitda track record (M€) (M€) CAGR +11% 277 +7% 274 271 224 225 185 167 154 137 135 +1% 129 1,383 99 +1% 81 277 +4% 87 Revenues Ebitda Net profit '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14* '15 Hera highlights low risk exposure of the
Slide 3: Q1 '15 figures in a snapshot
Q1 ‘15 figures in a snapshot Q1 Profit & Loss (M€) • Q1‘15 Revenues partially recovered ‘14 Q1 ’14* Q1 ‘15 mild winter effects. REVENUES 1,294.9 1,383.3 +7.1% EBITDA 274.3 277.2 +1.1% Depreciation and provisions (101.4) (107.1) • M&A and organic growth fully EBIT 172.9 170.1 compensate ‘14 positive
Slide 4: Ebitda positive growth overcoming '14 one offs
Ebitda positive growth overcoming ‘14 one offs Q1 EBITDA growth drivers (M€) +1.1% • 2014 mild winter impact partially +6.6% recovered. 277 274 +10 • Growth mainly relates to Electricity market (14) +7 expansion and positive performance in Gas supply activities (60% mild winter impact recovered). •
Slide 5: Waste: plants maintenance offset positive price trends
WASTE: Plants anticipated maintenance offset positive price trends Positive trend in prices • Q1 Ebitda moved from 69.8m€ to 64.9m€ due to: Q1 ’14 Q1 ’15 • Programmed closure of exhausted Total Revenues waste (m€) 222.7 214.7 Total volume waste (kton) 1,016.8 938.8 landfills; • Temporarily interrupt
Slide 6: Networks: visible contribution from AMGA Udine
NETWORKS: Visible contribution from AMGA Udine NETWORKS Ebitda (M€) (3.1%) 130 126 • 2014 results were affected by non recurrent (14) +6 +4 positive items (White certif. and “perequa- zione specifica”). Q1'14* Non recurr. '14 Q1'14 Norm. Org. G. M&A Q1'15 • Organic growth mainly refers to capex plan
Slide 7: Better winter climate and market expansion
Better winter climate and market expansion ENERGY Ebitda driver (M€) +18.6% • Better winter climate underpins gas sales and trading volumes +23.7% increase 83 70 +9 +4 (still not back to 2013 levels). • HERACOMM expansion in electricity markets continues (+13K customers in Q1 '14 Org. G. M&A 1Q 2015
Slide 8: Positive cash flows
Positive cash flows Q1 cash flows • Working capital flat notwithstanding (M€) seasonality thanks to cash-in of Salvaguardia receivables and W.C. proactive management. • Positive cash generation reduced net debt from 2,640 to 2,557m€ in first 3 months ‘15. (62) (4) (4) +84 +178 (24) • Average interes
Slide 9: Closing remarks – Q&A session
Closing remarks – Q&A session • Results highlight positive trends in • Amga Udine merger delivered waste prices/margins, expansion in expected contribution electricity markets and recovery of • Dividend confirmed by AGM gas sales volumes. Planned targets and strategies confirmed 08
Slide 10: Annex
Annex Ebitda by Business BO00u0s
Slide 11: Financial highlights breakdown
Financial highlights breakdown Special waste margins “up” Tariffs underpinned a solid growth M€ Q1 '14* Q1 '15 Ch. % M€ Q1 '14* Q1 '15 Ch. % Revenues 222.7 214.7 (3.6%) Revenues 169.1 182.6 +8.0% Group Ebitda 69.8 64.9 (7.0%) Group Ebitda 47.3 50.5 +6.8% Volume Q1 '14 Q1 '15 Ch. % Volumes Q1 '14 Q1
Slide 12: Financial highlights breakdown
Financial highlights breakdown Climate impact partially Commercial expansion and Networks recovered M€ Q1 '14 Q1 '15 Ch. % M€ Q1 '14 Q1 '15 Ch. % Revenues 561.9 632.1 +12.5% Revenues 372.0 391.4 +5.2% Group Ebitda 116.6 128.4 +10.2% Group Ebitda 36.2 29.3 (19.1%) Volumes Q1 '14 Q1 '15 Ch. % Volumes