Iren S.p.a. · MIL:IRE
Iren — H1 2013 Earnings Presentation
18 slides from Iren's earnings presentation, Aug 29, 2013
Slide 1: 2013 – 1H Results
29th of August 2013 2013 – 1H Results
Slide 2: IREN's new Corporate Governance structure
IREN’S new Corporate Governance structure. Iren Group BoD Executive committee Chairman CEO Vice Chairman Managing director Former Governance Procurement and tenders; internal audit; Communication; Legal and A.F.C; I.R.; Str. corporate affairs; H&R; Shared Planning; M&A; Corporate and Media services;
Slide 3: Completed operations (2012): Waste
Completed operations (2012): WASTE. Acquisition of 80% of TRM with F2i. Acquisition of 49% of AMIAT. TRM is the Company which is building AMIAT is the Company which the new WTE manages urban waste in Turin (420kton/yr). collection in Turin. Municipality Municipality >50% of Turin of Turin SPV 49% 51
Slide 4: Completed operations (2013): Edipower swap-option
Completed operations (2013): Edipower swap-option. EDIPOWER TOLLING PARTICIPATION DIRECT OWNERSHIP OF THROUGH 21% STAKE SWAP TURBIGO AND TUSCIANO PLANTS 1 - Turbigo Thermoelectric plant. 2 - Tusciano Hydroelectric plant. - Region: Lombardia. - Region: Campania. - Type: CCGT/Gas. - Type: Fluent water
Slide 5: 1H 2013 – Positive trend confirmed
1H 2013 – Positive trend confirmed. EURm 1H ‘12 1H ‘13 ∆ ∆% REVENUES 2,267 1,823 -444.6 -19.6% EBITDA 337 376 +39.4 +11.7% EBITDA (margin) 14.8% 20.6% EBIT 196 240 +44.2 +22.6% NET PROFIT 75 111 +35.5 +47.1% GROSS CAPEX 146 119 -27.0 -18.5% NFP 2,555* 2,467 -87.8 -3.4% Revenues down by 19.6%: Lower
Slide 6: EBITDA Bridge – Positive results both in unregulated and regulated business
EBITDA BRIDGE – Positive results both in unregulated and regulated business, with a strong increase in Market SBU. EBITDA BRIDGE (m€) 29 7 3 376 6 (4) (2) 337 Unreg. Activities +35m€ Reg. Activities +6m€ 1H '12 Generation and Market Infrastruct. Water Waste Other 1H '13 DH EBITDA bridge - Key Elemen
Slide 7: Generation and DH – Growth driven by higher volumes and spark-spread
GENERATION AND DH – Growth driven by higher volumes and spark- spread. 1H ’13 vs. 1H ’12 Strong improvements in Cogen confirmed. The higher 1H '12 1H '13 Δ€m Δ% spark-spread, arising from a sound management of the gas Revenues 550 521 (29) -5% procurement policy and higher profitability in MSD marke
Slide 8: Market – Outstanding results in gas sector
MARKET – Outstanding results in gas sector. 1H ’13 vs. 1H ’12 Gas and Heat Sales: The significant results reported in the 1H '12 1H '13 Δ€m Δ% last quarters are confirmed, thanks to an optimized Revenues 2,195 1,681 (514) -23% procurement portfolio which exploited market liquidity. EBITDA 39 68 29 7
Slide 9: Energy Infr. – Positive performances both in gas and electricity networks
ENERGY INFR. – Positive performances both in gas and electricity networks. 1H ’13 vs. 1H ’12 Electricity networks: The results are positively impacted 1H '12 1H '13 Δ€m Δ% mainly by cost savings and a number of extraordinary items, Revenues 183 183 0 - reported in the Parma and Turin areas. EBITDA 8
Slide 10: Water – Good results in spite of a negative one-off
WATER – Good results in spite of a negative one-off. 1H ’13 vs. 1H ’12 Slight increase in Revenues: This is the combined result 1H '12 1H '13 Δ€m Δ% of the positive effect of tariff increase, linked to the new Revenues 213 216 3 1% Temporary Tariff Method (MTT) and the negative effect of EBITDA 59 6
Slide 11: Waste: The shutdown of the WTE in Reggio Emilia negatively affected performance
WASTE: The shutdown of the WTE in Reggio Emilia negatively affected sector’s performances. 1H ’13 vs. 1H ’12 Stable revenues: Tariffs increase offset the lack of 1H '12 1H '13 Δ€m Δ% revenues for heat production due to the shutdown of Reggio Revenues 106 106 0 0% Emila WTE. EBITDA 21 17 (4) -17% EBI
Slide 12: From EBIT to Net Profit
From EBIT to Net Profit. 1H ‘12 1H ‘13 ∆% EBIT 195.9 240.2 +22.6% • Financial charges Financial charges (46.9) (38.0) benefit of the decrease in NFP. Companies consolidated with E.M. 5.4 10.9 Adj. in participations (10.2) - EBT 144.2 213.1 +47.8% Taxes (73.5) (96.5) Profit from discontinued oper. 9.
Slide 13: Cash-flow & Debt Structure
CASH-FLOW & DEBT STRUCTURE. NFP Bridge 30.06.2013 Interest rate* and Debt Structure** 2,555 14 2,467 76 119 28% (117) (102) (4) 44% (74) 28% Fixed Variable Swap The steady reduction in NFP, already reported in the last 5 quarters is the combined effect of better operating results, an improved NWC
Slide 14: Closing Remarks
CLOSING REMARKS. The positive 1H results (Ebitda + 11.7% at 376 €m. and Net Profit + 47% at 111€m.), despite the persistent adverse scenario, confirm the resilience of Iren Group’ s business portfolio and the effectiveness of the financial deleveraging process (Nfp -3.4% lower than 2.5 €b); Comp
Slide 15: Annexes
ren Annexes Pag. 15 di 18
Slide 16: Market Scenario
Market Scenario. 1H ‘12 1H ‘13 Δ% • In the 1H 2013 Brent average price stood at Brent USD / bbl 113.6 107.5 -5% 107.5 $/bbl, marking a 5% decrease vs. 1H 2012. USD / € 1.30 1.31 1% • USD/€ exchange rate was substantially Brent € / bbl 87.6 81.9 -7% stable. • Gas demand fell by 7%, mainly because of
Slide 17: Balance Sheet
Balance Sheet. €m 31.12.2012 30.06.2013 Net fixed assets 4,735 4,444 Net Working Capital 235 161 Funds (457) (427) Other assets and liabilities (4) 296 Net invested Capital 4,509 4,474 Net Financial Position 2,555 2,467 Group shareholders’ equity 1,954 2,007 Total Funds 4,509 4,474 Pag. 17 di 18
Slide 18: 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