Iren S.p.a. · MIL:IRE

Iren — H1 2015 Earnings Presentation

15 slides from Iren's earnings presentation, Aug 27, 2015

  1. Slide 1: 2015 – 1H Results

    27th August 2015 2015 – 1H Results

  2. Slide 2: 1H 2015: six months of constant development and innovation

    1H 2015: six months of constant development and innovation… Starting from December 2014 the integration and streamlining process inside the company, outlined in the latest IREN’s business plan, has accelerated through well defined and significant steps. Organization streamlining - Centralization at

  3. Slide 3: …which will continue in 2H 2015 as well

    …which will continue in 2H 2015 as well. • At the end of July IREN launched an operating project, aimed at the rationalization of the Company’s structure, which will be completed by the next December. • The Group’s organization will be based on four Business Units and the operating activity will be

  4. Slide 4: 1H 2015: double digit growth in Net Profit

    1H 2015: double digit growth in Net Profit. Income statement Ebitda Bridge m€ 1H '141 1H '15 Δ Δ% +2.0% Revenues 1.521 1.579 57,9 3,8% 371 14 1 4 8 378 (6) (14) Ebitda 371 378 7,6 2,0% Ebit 229 217 -12,2 -5,3% Net profit 77 103 25,6 33,3% 1H 2014 Gener. Market Networks Networks Waste Other 1H 2015 a

  5. Slide 5: Generation and DH – Expiry of GCs and absence of a positive 2014 one-off

    GENERATION AND DH – Expiry of GCs and the absence of a positive 2014 one-off have impacted the sector’s performance. m€ 1H '14 1H '15 Δ Δ%  Cogeneration sector hit by the absence of an approximately 10m€ non-recurrent item reported in Revenues 463 398 -65 -14% 1H 2014. Net of this, 1H 2015 results

  6. Slide 6: Market – Growth in all the sub-sectors

    MARKET – Growth in all the sub-sectors. m€ 1H '14 1H '15 Δ Δ%  The Gas Sales maintained the good performance already Revenues 1,299 1,199 -100 -8% reported in the 1Q of the year, scoring a +36% increase, thanks to sound policies for both purchases and sales. Ebitda 48 62 14 29% Electricity 12 13 1

  7. Slide 7: Networks – Positive results both in energy and water sector

    NETWORKS – Positive results both in energy and water sector. ENERGY INFRASTRUCTURE m€ 1H '14 1H '15 Δ Δ% • Electricity networks: the same positive elements Revenues 161 197 36 22% reported in 1Q 2015 drove the growth in the sector (equalization for previous year and higher white Ebitda 70 71 1 1% ce

  8. Slide 8: Waste – One of the main EBITDA growth drivers

    WASTE – One of the main EBITDA growth drivers. m€ 1H '14 1H '15 Δ Δ%  The positive effects resulting from the full operation of Parma WTE, the strong increase in special waste Revenues 115 234 119 102% collection (~60% in volumes) and contribution of AMIAT Ebitda 28 36 8 29% more than offset the ne

  9. Slide 9: From EBITDA to Net Profit

    From EBITDA to Net Profit. 1H '14 1H '15 Δ Δ% EBITDA 370,5 378,1 7,6 2,0%  Higher D&A related mainly D&A -118,4 -130,9 the consolidation of AMIAT.  Higher provision due to Provisions -23,2 -30,5 the absence of the ~11m€ risk-fund release reported in 1H 2014. EBIT 228,9 216,7 -12,2 -5,3% Financial

  10. Slide 10: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. 2.286 81 2.155 98 (115) (7) (111) (12) (66) NFP 31 .12 .14 Net Profit D&A and other NWC Variation Capex Dis posals Div idends Others NFP 30 .06 .15 ope rat ing change s  The ~130m€ reduction in NFP is related to an operating cash flow generation of approximately 300m€ whic

  11. Slide 11: Interest rate and debt structure

    Interest rate and debt structure. Gross debt interest rate  25% of gross debt at variable interest rate.  Average long-term debt duration of about 4.8 years.  Relevant reduction in cost of debt (3.4% Debt structure compared to 3.8% in FY 2014). 24%  Well-balanced debt structure (one quarter of I

  12. Slide 12: Annexes

    ren Annexes Pag. 12

  13. Slide 13: Market Scenario

    Market Scenario. 1H '14 1H '15 Δ% Brent USD/bbl 108,9 57,9 -46,8% €/USD 1,4 1,1 -18.6% Brent €/bbl 79,5 42,3 -46,8% Gas Demand (bcm) 33 35 +7,9% PSV €/000 scm 245 248 +1,3% Energy Demand (Twh) 153,7 153,2 -0,3% PUN (€/Mwh) 49,5 49,8 +0,7% CO2 €/Ton 5,6 7,2 +28,6% Green Cert. Hydro (€/Mwh) 90,6 97,9

  14. Slide 14: Balance Sheet

    Balance Sheet. FY '14 1H '15 Net fixed assets 4,619 4,582 Net Working Capital 238 173 Funds -550 -540 Other assets and liabilities -28 -23 Net invested capital 4,279 4,192 Group Sharholders' equity 1,994 2,037 Net Financial Position 2,285 2,155 Total Funds 4,279 4,192 Pag. 14

  15. Slide 15: 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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