Slide 1: Hera Group 2015 annual results
Hera Group 2015 annual results Bologna, March 22 2016
Slide 2: Reliable growth model consistent in last 5 years
Reliable growth model consistent in last 5 years + Ebitda + Net profit (M€) (M€) CAGR+7.8% CAGR+9.0% 181 868 884 810 165 165 645 662 607 117 119 105 '10 '11 '12 '13 '14 '15 '10 '11 '12 '13 '14 '15 Highest growth rate in net profit GRUPPOHERA 01
Slide 3: Another year of sound growth
Another year of sound growth + HIGHLIGHTS (M€) 2014 2015 • Colder winter pushed revenues. Revenues 4,513.6 4817.8 +6.7% EBITDA 867.8 884.4 +1.9% • D&A and provision increase mainly relates to change in perimeter (+11.3m€). Depr. & Prov. (426.6) (442.2) EBIT 441.2 442.2 +0.2% • Bad Debt provision inc
Slide 4: The two pillar model underpins Hera growth
The two pillar model underpins Hera growth + EBITDA growth drivers (M€) • Positive organic Growth mainly relates to market +1.9% expansion in Energy supply (+73k clients) and volumes (better winter season) and positive +5.2% performance in Network activities (efficiency and 884,4 +13,8 867.8 +4,2 op
Slide 5: Networks: portfolio's best
Networks: portfolio’s best + Ebitda (M€) +2.9% • Visible growth underpinned by new Water +10.0% tariffs and efficiency improvements. +27,0 +8,3 428,4 416.3 +3,7 389,4 (26.9) • Results benefit also from one off revenue recovery of prior years (water). • M&A relates to AMGA Udine Gas distribution acti
Slide 6: Energy: hot results in cold winter
Energy: hot results in cold winter + Ebitda • HERACOMM expansion continues highlighting (M€) solid competitive advantages. +8.7% • +73k customers in 12 months, reaching a customer base in Electricity of ~860k 188.2 +0,3 +5,0 204,6 clients (including safeguarded clients) and +11,1 about 1,330k gas cu
Slide 7: Waste treatment: ready to surf the market trends
Waste treatment: ready to surf the market trends + Ebitda • 2015 “temporary” shortage on landfill (M€) capacity lowered margins and possibility to 241.8 fully benefit from positive market trends. +0,2 +0,5 230.0 (8.1) (4.4) • Landfill capacity expansion is already in progress: • Acquisition of landf
Slide 8: Self financing Group's expansion
Self financing Group’s expansion + Cash flows • Capex primarily in Water (115m€) and Gas (M€) (87m€). • Positive Operating cash flows exceed 200m€ after capex and change in NWC. (4) • DPS paid 9 eurocents in line confirmed 13 years track record. • Free cash flows almost fully funded acquisitions (33
Slide 9: In the spotlight: closing remarks
In the spotlight: closing remarks • Positive results and enhanced financial soundness underpin, once again, Group’s long and continuous track record in both organic growth and M&A activities. • 2015 results did not fully benefit from M&A (in Waste sector) and discounted the shortage in landfill whic
Slide 10: Q&A Session - Appendix
Q&A SESSION Appendix GRUPPOHERA
Slide 11: Financial highlights: breakdown by business
Financial highlights: breakdown by business Waste Water (m€) Y 2014 Y 2015 Ch. % (m€) Y 2014 Y 2015 Ch. % Revenues 910.4 894.3 (1.8%) Revenues 780.2 796.2 +2.1% Ebitda 241.8 230.0 (4.9%) Ebitda 217.1 232.5 +7.1% Data Y 2014 Y 2015 Ch. % Data Y 2014 Y 2015 Ch. % Urban W. Volumes (Kton) 2,036.9 2,040.
Slide 12: Financial highlights: breakdown by business
Financial highlights: breakdown by business Gas Electricity (m€) Y 2014 Y 2015 Ch. % (m€) Y 2014 Y 2015 Ch. % Revenues 1,481.0 1,618.7 +9.3% Revenues 1,442.3 1,614.8 +12.0% Ebitda 276.0 295.8 +7.2% Ebitda 111.4 104.7 (6.1%) Data Y 2014 Y 2015 Ch. % Data Y 2014 Y 2015 Ch. % Volumes distrib. (mm3) 2,5