Snam S.p.a. · MIL:SRG

Snam — Snam Rete Gas — H1 2004 Earnings Presentation

18 slides from Snam's earnings presentation, Jul 28, 2004

  1. Slide 1: Analyst Presentation First Half 2004

    Analyst Presentation First Half 2004 July 28, 2004

  2. Slide 2: Market Scenario, Capacity, Tariff 2004-2005, Financial

    MARKET SCENARIO CAPACITY TARIFF 2004-2005 FINANCIAL 2

  3. Slide 3: Market Scenario: expected gas demand in Italy

    Market Scenario: expected gas demand in Italy 101-103 bcm 90-92 84 1st Half 2004 Other 3.6 % Thermoelectric 42.9 41.4 Industrial Residential & commercial 2003 2004 2006 2010 2015 Estimated import increase vs. 2003 ≈ 10 ≈ 20÷22 ≈ 33÷35 Source: Ministry of Industry and SRG estimates 3

  4. Slide 4: Progress on CCGT Programme

    Progress on CCGT Programme 9.04 GW in operation/start up since 2002 La Casella (Enel) 1.52 GW Porto Corsini (Enel) 0.76 GW Pietrafitta (Enel) 0.38 GW Priolo (Enel) 0.76 GW x Termini Imerese (Enel) 0.38 GW Ostiglia (Endesa) 0.78 GW Sannazzaro (Enipower) 1.03 GW Ravenna (Enipower) 0.78 GW Cassano d’Ad

  5. Slide 5: Market Scenario, Capacity, Tariff 2004-2005, Financial

    MARKET SCENARIO CAPACITY TARIFF 2004-2005 FINANCIAL 5

  6. Slide 6: Capacity expansion at the Entry Points

    Capacity expansion at the Entry Points Evolution of transport capacity Transport capacity needed in Italy (million scm/d) 400 350 Needed 300 capacity 250 200 Capacity under 150 construction 100 50 Existing capacity 0 2002/03 2003/04 2010 2015 6

  7. Slide 7: Market Scenario, Capacity, Tariff 2004-2005, Financial

    MARKET SCENARIO CAPACITY TARIFF 2004-2005 FINANCIAL 7

  8. Slide 8: Regulated Revenues 2004-2005

    Regulated Revenues 2004-2005 €m Gas year Gas year 03- 03-04 04- 04-05 From initial RAB 1,687 1,699 •2003 inflation rate: 2.5% Capacity 1,181 1,188 •Assumption: 2.5% volume growth Commodity 506 (2) 511 New development •Incremental investments 56 capex: 201 €m 83 Regulated revenues (1) 1,743 +2.2% 1,7

  9. Slide 9: Tariff Benchmarking: results

    Tariff Benchmarking: results Volumes Load factor Trasportation costs (overall results) - 500 km national network 30 km regional network, 50% load factor Transportation costs (overall results) - 105.6 GWh 500 km national network, 30 km regional network 6.00 6.00 5.00 5.00 4.00 4.00 SRG Comp.”A” €/MWh

  10. Slide 10: Market Scenario, Capacity, Tariff 2004-2005, Financial

    MARKET SCENARIO CAPACITY TARIFF 2004-2005 FINANCIAL 10

  11. Slide 11: 1H 2004 Highlights

    1H 2004 Highlights 1H03 1H04 Change Gas consumption (bcm) 41.4 42.9 +1.5 Gas injected in the network (bcm) 39.9 41.8 +1.9 Capex (€m) 184 276 +92 Controllable fixed costs (€m) 111 110 -1 EBITDA (€m) 725 734 +9 EBIT (€m) 493 500 +7 Net profit (€m) 259 273 +14 11

  12. Slide 12: Revenues

    Revenues €m 1H03 1H04 Change Regulated revenues 886 891 +5 Transport 864 874 +10 Revenues 830 851 +21 Pass-through revenues 34 23 -11 LNG 22 17 -5 Revenues 17 14 -3 Pass-through revenues 5 3 -2 Non regulated revenues 11 25 +14 TOTAL 897 916 +19 12

  13. Slide 13: Operating Expenses

    Operating Expenses €m 1H03 1H04 Change Regulated activities 171 181 +10 Controllable opex 135 143 +8 Fixed costs 111 110 -1 Variable costs 24 33 +9 Other 36 38 +2 Non regulated activities 1 1 - TOTAL 172 182 +10 13

  14. Slide 14: Income Statement

    Income Statement €m 1H03 1H04 Change Revenues 897 916 +19 Operating expenses -172 -182 -10 EBITDA 725 734 +9 Depreciation & Amortisation -232 -234 -2 EBIT 493 500 +7 Net interest income (expenses) -66 -55 +11 Extraordinary income (expenses) 1 -1 -2 EBT 428 444 +16 Income taxes -169 -171 -2 NET PROFI

  15. Slide 15: Balance Sheet

    Balance Sheet €m 31 Dec 30 Jun 2003 2004 Net Invested Capital 8,803 -8 8,795 Fixed assets 9,208 +41 9,249 Tangible fixed assets 9,119 +41 9,160 Intangible fixed assets 89 - 89 Net working capital -386 -47 -433 Receivables 416 +13 429 Liabilities -802 -60 -862 Staff-leaving indemnity -19 -2 -21 Net f

  16. Slide 16: Capex

    Capex €m 1H03 1H04 Change DEVELOPMENT 129 201 +72 Transportation - national 85 156 +71 Transportation - regional 42 45 +3 LNG 2 - -2 MAINTENANCE AND OTHER 55 75 +20 TOTAL 184 276 +92 16

  17. Slide 17: Cash Flow

    Cash Flow €m 1H03 1H04 Change Net income 259 273 +14 Depreciation and other non-monetary items 230 242 +12 Cash flow before change in working capital 489 515 +26 Change in net working capital 184 47 -137 Cash flow from operations 673 562 -111 Net investments -169 -281 -112 Free cash flow 504 281 -22

  18. Slide 18: Analyst Presentation First Half 2004

    Analyst Presentation First Half 2004 July 28, 2004

Snam Rete Gas — H1 2004 Earnings Presentation on 6ix