Iren S.p.a. · MIL:IRE

Iren — Q1 2015 Earnings Presentation

14 slides from Iren's earnings presentation, May 14, 2015

  1. Slide 1: 2015 – 1Q Results

    14th May 2015 2015 – 1Q Results

  2. Slide 2: 1Q 2015: Absence of extraordinary negative one-offs reveals Iren's potential

    1Q 2015: Absence of extraordinary negative one-offs reveals Iren’s potential. The exceptional mild winter and autumn seasons that characterized 2014 did not repeat in the 1Q 2015, which reported lower temperatures, more in line with the average of the period. In this scenario the Group has focused m

  3. Slide 3: 1Q 2015: all the economic key indicators signal growth

    1Q 2015: all the economic key indicators signal growth. Income statement Ebitda Bridge m€ 1Q '141 1Q '15 Δ Δ% +4% Revenues 903 919 16.0 1.8% 203 13 211 191 9 (2) Ebitda 203 211 8.2 4.0% (12) Eb itda margin 22.5% 23.0% Ebit 129 133 4.4 3.5% Net profit 51 59 7.3 14.2% 1Q 2014 Cap. gain 1Q 2014 Unreg.

  4. Slide 4: Generation and DH – Stable results in spite of the expiry of GCs

    GENERATION AND DH – Stable results in spite of the expiry of GCs. m€ 1Q '14 1Q '15 Δ Δ%  Stable results in cogeneration thanks to higher volumes and positive performance in the dispatching Revenues 302 267 -35 -11% services market (MSD) which offset the absence of the Ebitda 70 70 0 0% positive one

  5. Slide 5: Market – Strong increase in gas sector

    MARKET – Strong increase in gas sector. m€ 1Q '14 1Q '15 Δ Δ%  The Gas Sales branch scores a +34% increase, thanks to Revenues 873 812 -61 -7% the effective sales policy carried out by the Group together with a very low percentage of long term contracts in its Ebitda 40 49 9 22% sources portfolio.

  6. Slide 6: Distribution – Positive results in all the sectors

    DISTRIBUTION – Positive results in all the sectors. ENERGY INFRASTRUCTURE m€ 1Q '14 1Q '15 Δ Δ% • Electricity networks: Positive impact of the equalization Revenues 77 87 10 13% for previous year, together with higher white certificates thanks to an increase in efficiency. Ebitda 32 37 5 15% Electri

  7. Slide 7: Waste – Doubling of revenues

    WASTE – Doubling of revenues. m€ 1Q '14 1Q '15 Δ Δ%  The acquisition of the control of AMIAT and its subsequent entering into Iren’s consolidation Revenues 56 116 60 107% perimeter brought to a doubling in revenues and to a Ebitda 13 20 7 52% strong increase in urban waste volumes collected and EBI

  8. Slide 8: From EBITDA to Net Profit

    From EBITDA to Net Profit. 1Q '14 1Q '15 Δ Δ% EBITDA 203.3 211.4 8.1 4.0% D&A -57.2 -65.7  Higher D&A related mainly the consolidation of AMIAT Provisions -17.4 -12.5 and lower provisions. EBIT 128.7 133.2 4.5 3.5% • Lower FC due to lower cost Financial charges for loans -23.8 -21.1 of debt. Other

  9. Slide 9: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. 2,286 44 2,172 (63) (66) (4) (2) (23) NFP 31 .12 .14 Net Profit D&A and other NWC Variation Capex Dis posals Others NFP 31 .03 .15 ope rat ing changes  The relevant reduction in NFP is due to the cash flow from operation, which more than covers the cash- out for investment

  10. Slide 10: Interest rate and debt structure

    Interest rate and debt structure. Gross debt interest rate 16%  26% of gross debt at variable interest rate. 26% 58%  Average long-term debt duration of about 4.9 years. Fixed Variable Swap  Relevant reduction in cost of debt (3.5% Debt structure compared to 3.8% in FY 2014). 24%  Well-balanced

  11. Slide 11: Annexes

    ren Annexes Pag. 11

  12. Slide 12: Market Scenario

    Market Scenario. 1Q '14 1Q '15 Δ% Brent USD/bbl 108.2 54 -50.1% USD/€ 1.4 1.1 -17.7% Brent €/bbl 79.0 47.9 -39.4% Gas Demand (bcm) 21 24 10.5% PSV €/000 scm 269 257 -4.4% Energy Demand (Twh) 78 78 -0.1% PUN (€/Mwh) 52.5 51.9 -1.2% 2 CO €/Ton 5.9 7.0 +19.5% Green Cert. Hydro (€/Mwh) 90.6 97.9 +8.1% •

  13. Slide 13: Balance Sheet

    Balance Sheet. FY '14 1Q '15 Net fixed assets 4,619 4,591 Net Working Capital 238 216 Funds -550 -562 Other assets and liabilities -28 -17 Net invested capital 4,279 4,228 Group Sharholders' equity 1,994 2,055 Net Financial Position 2,285 2,172 Total Funds 4,279 4,228 Pag. 13

  14. Slide 14: Disclaimer

    DISCLAIMER The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Mr. Massimo Levrino, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Finance Act (Legislative Decree No 58/1998), that the accounting info

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