Hera S.p.a. · MIL:HER
Hera — Q1 2011 Earnings Presentation
12 slides from Hera's earnings presentation, May 12, 2011
Slide 1: Hera Group Q1 results
Hera Group Q1 results Analyst presentation 12th May 2011
Slide 2: Strong results outperforming track records
Strong results outperforming track records Q1 ’11 growth rates Strong set of achievements in Q1 down +40.2% to bottom line. +28.6% +21.2% Results underpinned by Energy activities outstanding performance driven by commercial development and procurement position. Ebitda Ebit Net Profit M&A contributed
Slide 3: Q1 '11: bottom line grows +40%
Q1 ’11: bottom line grows +40% Q1 2011 posted a growth in line with full year 2010 Tariffs, energy prices and market Contribution from all expansion businesses and drivers Less dividend from Lower incidence of associates by 2.8m€ IRAP 2
Slide 4: Growth offsets seasonal working capital increase
Growth offsets seasonal working capital increase Change in net financial debt Financial debt towards proper 2100 balancing. 1,971 1,963 Positive free cash flows for the third quarter 1,860 1,846 in a row. Q1 ’11 cash generation fully offset 1600 seasonal increase in working capital (up by Q2 '10 Q3
Slide 5: Strong Ebitda growth almost fully organic
Strong Ebitda growth almost fully organic Ebitda growth Drivers Organic Growth fuelled by gas supply (Ebitda from 26 to 41 m€) and by electricity 230 +36.0 +1.6 +1.6 224.3 supply (Ebitda from 9 to 20 m€). Increase in tariffs, customers, cross selling 185.1 and synergies. New plants: WTE Rimini (star
Slide 6: Waste: harvesting from asset base
Waste: harvesting from asset base Financial highlights Sales growth mainly driven by +6% in special waste volumes, in spite of slow recovery of manufacturing activities (+1.3%) and energy production. Ebitda underpinned in WTE performance Industrial figures (mainly related to new WTE in Rimini). Fina
Slide 7: Water: efficiency and tariff enhancements offset bad weather
Water: efficiency and tariff enhancements offset bad weather Financial highlights Revenues growth mainly driven by tariffs increase partially offset by lower volumes related to weather conditions. Ebitda increase driven by synergies and tariff that offset higher electricity prices Volumes and lower
Slide 8: Gas: better procurement offsets mild winter season effects
Gas: better procurement offsets mild winter season effects Financial highlights Revenues growth mainly driven by higher commodity prices partially offset by lower volumes (gas and district heating) related to mild winter season. Ebitda increase mainly driven by enhanced margins in procurement and su
Slide 9: Electricity: performance led by market expansion
Electricity: performance led by market expansion Financial highlights Revenues growth mainly driven by higher volumes related to “salvaguardia” services and market expansion (+51k customers in Q1). Trading activities continued to yield positive growth. Procurement and supply portfolio benefit from c
Slide 10: Capital expenditure under control
Capital expenditure under control Capital Exp. & Investments Capex further decrease in 2011 mainly due to the completion of WTE plants while in line with schedule. Q1 ’11 capex mainly relates to maintenance. Waste capex reduced due to completion of WTE plants (6.9 m€ relates to WTE in Rimini) Capex
Slide 11: Closing remarks
Closing remarks Financial highlights Market expansion and better margins enhance profitability. Waste mgmt commercial approach is contributing in tackling with slow recovery in Italian economy. Developed asset base almost fully contributed to results. Energy is benefitting from past strategic choice
Slide 12: Q&A session
Q&A session