Edison Spa · MIL:EDNR

Edison Spa — H1 2017 Earnings Presentation

14 slides from Edison Spa's earnings presentation, July 2017

  1. Slide 1: First Half 2017 Results

    FIRST HALF 2017 RESULTS Milan, July 2017 Full Year 2016 results | Feb.’17 | 1

  2. Slide 2: Business Environment

    BUSINESS ENVIRONMENT € oo wu» EDISON

  3. Slide 3: Electric Power Availability Mix in Italy

    ELECTRIC POWER AVAILABILITY MIX IN ITALY (TWh) +1.4% 152,4 154,6 22,6 (18.4%) 18,4 Pumping 14,2 +10.4% 15,7 10,3 (14.5%) 8,8 Net import 18,5 Other renewable production 21,5 (14.0%) Wind production National Generation Hydroelectric production Thermoelectric production 85,0 +11.1% 94,5 -1,2 -1,3 1H201

  4. Slide 4: Gas Demand in Italy

    GAS DEMAND IN ITALY 39,2 (bcm) 35,7 +9.7% 0,9 0,8 +21.3% 12,3 10,1 System uses and losses Thermoelectric users +6.4% 8,6 9,1 Industrial users Services and residential users 4.0% 16,2 16,8 1H2016 1H2017 Gas demand increased by 9.7% thanks to higher gas powered generation, a recovery in industrial con

  5. Slide 5: Market Reference Scenario

    MARKET REFERENCE SCENARIO Avg 1H2017: 52.8 $/bbl 48.8 €/bbl BRENT Avg 1H2016: 41.0 $/bbl 36.7 €/bbl PSV Avg 1H2017: 20.4 Avg 1H2016: 15.4 (€c/scm) Avg FY2016: 16.5 Avg FY2016: 45.1 $/bbl 40.8 €/bbl Avg 1H2017: 3.6 PUN TWA Avg 1H2017: 51.2 Avg 1H2016: 37.0 CSS1 Avg 1H2016: -0.8 Avg FY2016: 2.7 (€/MWh

  6. Slide 6: First Half 2017 Results

    FIRST HALF 2017 RESULTS • Electric power and hydrocarbons sources and uses • Consolidated financial highlights and capital expenditures • Operating performance • Net financial debt and cash flow | 6

  7. Slide 7: Electric Power Volumes in Italy

    ELECTRIC POWER VOLUMES IN ITALY SOURCES USES (TWh) (TWh) 45,2 (14.4%) 45,2 (14.4%) 0,6 38,7 1,2 (11.4%) 38,7 5,9 (12.9%) 0,6 7,3 +15.9% 1,0 5,2 8,4 39,3 (14.7%) 36,1 (20.6%) 33,5 28,7 1H2016 1H2017 1H2016 1H2017 Wind & other renewable production Other sales (b) (wholesalers, IPEX, etc.) End customer

  8. Slide 8: Hydrocarbons Volumes

    HYDROCARBONS VOLUMES GAS PORTFOLIO IN ITALY SOURCES USES (bcm) +1.1% (bcm) +1.1% 10,7 10,5 10,7 10,5 0,1 0,1 (1.6%) 2,9 3,4 2,9 4,0 (14.5%) 3,7 3,0 +19.2% +3.2% 7,3 7,5 +11.4% 2,0 2,2 1,5 (8.2%) 1,4 (5.6%) 0,2 0,2 1H2016 1H2017 1H2016 1H2017 Production (a) Imports (pipeline + LNG) Residential uses I

  9. Slide 9: Hydrocarbons Volumes: E&P Operations

    HYDROCARBONS VOLUMES E&P OPERATIONS GAS PRODUCTION OIL PRODUCTION (mcm) (kbbl) 2.225 (5.8%) 999 +1.4% 1.013 2.096 241 227 (5.6%) 1.125 (15.7%) 948 758 3.8% 786 4.3% 1.100 1.148 1H2016 1H2017 1H2016 1H2017 International production (a) Domestic production (b) International production (a) Domestic prod

  10. Slide 10: Group Consolidated Highlights

    a) GROUP CONSOLIDATED HIGHLIGHTS (€ mln) FY2016 1H2016 1H2017  Net capex & financial investmentsb) 11.034 Sales revenues 5.468 4.968 (9,1%) 653 EBITDA 340 426 25,3% (260) EBIT 21 19 (9,5%) 191 193 (347) Profit (loss) before taxes (36) (57) (58,3%) 42 41 (389) Group net income (loss) (67) (140) nm b

  11. Slide 11: Operating Performance Breakdown

    OPERATING PERFORMANCE BREAKDOWN Electric Power Hydrocarbons Corporate and other Total Edison Group (€ mln) 1H2016 1H2017 ∆ 1H2016 1H2017 ∆ 1H2016 1H2017 ∆ 1H2016 1H2017 ∆ Sales revenues 2.650 2.544 (4,0%) 3.111 2.821 (9,3%) (293) (397) (35,5%) 5.468 4.968 (9,1%) Adjusted EBITDA (*) 122 131 7,4% 260

  12. Slide 12: From Consolidated EBITDA to Net Result

    FROM CONSOLIDATED EBITDA TO NET RESULT (€ mln) 1H2016 1H2017  EBITDA 340 426 86 Despite the improvement in Depreciation, amortization and writedowns (241) (240) 1 industrial activities, the Group Of which: exploration costs (41) (42) (1) recorded a loss of €-140mln mainly Net change in fair value o

  13. Slide 13: Net Financial Debt and Cash Flow

    NET FINANCIAL DEBT AND CASH FLOW (€ mln) (1062) 282 FURTHER (780) REDUCTION OF NET FINANCIAL DEBT BELOW € 0.8 BLN Dec 31, 2016 June 30, 2017 +94 -43 -12 -190 POSITIVE CASH +426 INFLOW +7 +282 GENERATED BY INDUSTRIAL PERFORMANCE EBITDA Changes in Taxes Net financial Net investments Other Net cash flo

  14. Slide 14: Statement

    STATEMENT As required by Article 154-bis, Section 2, of the Uniform Finance Law (Legislative Decree No 58/1998), Didier Calvez and Roberto Buccelli, in their capacity as “Dirigenti preposti alla redazione dei documenti contabili societari” of Edison S.p.A., attest that the accounting information con

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