Snam S.p.a. · MIL:SRG

Snam — Snam Rete Gas — Q3 2004 Earnings Presentation

21 slides from Snam's earnings presentation, Nov 9, 2004

  1. Slide 1: Analyst Presentation Third Quarter 2004

    Analyst Presentation Third Quarter 2004 November 9th, 2004

  2. Slide 2: Highlights

    HIGHLIGHTS ITALIAN GAS MARKET EVOLUTION CAPEX GROWTH REGULATION FINANCIALS 22

  3. Slide 3: Highlights as at September 30, 2004

    Highlights as at September 30, 2004 Sep 30, Sep 30, Change 2003 2004 ƒ Gas injected in the network (bcm) 55,7 59,4 +3,71 ƒ Capex (€m) 290 410 +120 ƒ Net profit (€m) 372 400 +28 33

  4. Slide 4: Italian Gas Market Evolution

    HIGHLIGHTS ITALIAN GAS MARKET EVOLUTION CAPEX GROWTH REGULATION FINANCIALS 44

  5. Slide 5: Market Scenario: expected gas demand in Italy

    Market Scenario: expected gas demand in Italy 101-103 (bcm) 90-92 84 9 months Other 4.1 % Thermoelectric 57.1 54.9 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 55

  6. Slide 6: Sustained by the Deployment of the CCGT Programme: 2002-2003-2004

    Sustained by the Deployment of the CCGT Programme: 2002-2003-2004 1,6 1,4 x 1,2 1 20 04 0,8 20 03 20 02 0,6 0,4 0,2 0 i d lo ro o la a ia a e in n o se u tt n u id ss n o el gl a rs .S re M fi en a ri m a zz as i z o a st ld P/ e P iv az er av C tr na Im C va O h IP ie S o v R C La n or Ta .t T. P S

  7. Slide 7: Sustained by the Deployment of the CCGT Programme: the near future

    Sustained by the Deployment of the CCGT Programme: the near future ƒ 11.7 GW in operation/start up since ‘02 ƒ 8.6 GW under construction x • Edipower 0.76 GW • Endesa 0.77 GW • Enipower 1.95 GW • Tirreno Power 0.38 GW • Edison 2.71 GW • Energia 0.75 GW • IPP/Municipalities 1.30 GW In operation by 20

  8. Slide 8: Capex Growth

    HIGHLIGHTS ITALIAN GAS MARKET EVOLUTION CAPEX GROWTH REGULATION FINANCIALS 88

  9. Slide 9: Projects for Network Development

    Projects for Network Development Northern Russia Europe LNG Rovigo LNG Panigaglia LNG Livorno LNG Rosignano LNG Brindisi LNG Taranto PROJECTS UNDER CONSTRUCTION PROJECTS UNDER Algeria STUDY Libya 99

  10. Slide 10: Capacity Expansion at the Entry Points

    Capacity Expansion at the Entry Points Transport capacity (million scm/d) needed in Italy 400 350 Needed 300 capacity 250 Capacity 200 under construction 150 100 50 Existing capacity 0 2002/03 2003/04 2010 2015 10 10

  11. Slide 11: Regulation

    HIGHLIGHTS ITALIAN GAS MARKET EVOLUTION CAPEX GROWTH REGULATION FINANCIALS 11 11

  12. Slide 12: Regulation

    Regulation September 30, 2005 the 1st regulatory period expires Next steps Consultation Document New Delibera by Spring 2005 12 12

  13. Slide 13: Financials

    HIGHLIGHTS ITALIAN GAS MARKET EVOLUTION CAPEX GROWTH REGULATORY TRENDS FINANCIALS 13 13

  14. Slide 14: Volumes

    Volumes Jan-Sept Jan-Sept Change 2003 2004 bcm ƒ Residential and Commercial 18.9 18.4 -0.5 ƒ Industrial 16.2 16.6 +0.4 ƒ Thermoelectric 19.2 21.5 +2.3 ƒ Other 0.6 0.6 - Gas consumption (*) 54.9 57.1 +2.2 ƒ Storage 0.5 2.0 +1.5 ƒ Other 0.3 0.3 - Gas injected in the network 55.7 59.4 +3.7 (*) Snam Re

  15. Slide 15: Revenues

    Revenues Jan-Sept Jan-Sept Change €m 2003 2004 Regulated revenues 1,299 1,313 +14 ƒ Transport 1,268 1,287 +19 Revenues 1,217 1,252 +35 Pass-through revenues 51 35 -16 ƒ LNG 31 26 -5 Revenues 23 21 -2 Pass-through revenues 8 5 -3 Non regulated revenues 16 29 +13 TOTAL 1,315 1,342 +27 15 15

  16. Slide 16: Operating Expenses

    Operating Expenses Jan-Sept Jan-Sept Change 2003 2004 €m Regulated activities 258 256 -2 ƒ Controllable fixed costs 166 164 -2 ƒ Variable costs 30 43 +13 ƒ Other 62 49 -13 Non regulated activities 1 2 +1 TOTAL 259 258 -1 16 16

  17. Slide 17: Income Statement

    Income Statement Jan-Sept Jan-Sept Change €m 2003 2004 ƒ Revenues 1,315 1,342 +27 ƒ Operating expenses -259 -258 +1 EBITDA 1,056 1,084 +28 ƒ Depreciation & Amortisation -345 -349 -4 EBIT 711 735 +24 ƒ Net interest income (expenses) -97 -83 +14 ƒ Extraordinary income (expenses) 1 -1 -2 EBT 615 651 +3

  18. Slide 18: Balance Sheet

    Balance Sheet 31 Dec 30 Sept €m 2003 2004 ƒ Net Invested Capital 8,803 -28 8,775 ƒ Fixed assets 9,208 +56 9,264 Tangible fixed assets 9,119 +58 9,177 Intangible fixed assets 89 -2 87 ƒ Net working capital -386 -81 -467 Receivables 416 +13 429 Liabilit ies -802 -94 -896 ƒ Staff-leaving indemnity -19

  19. Slide 19: Capex

    Capex Jan-Sept Jan-Sept Change €m 2003 2004 DEVELOPMENT 207 306 +99 ƒ Transportation - national 144 239 +95 ƒ Transportation - regional 61 67 +6 ƒ LNG 2 - -2 MAINTENANCE AND OTHER 83 104 +21 TOTAL 290 410 +120 19 19

  20. Slide 20: Cash Flow

    Cash Flow €m 1,500 Change in Depreciation working & other non capital Capex 1,000 monetary 82 -410 Net 357 Dividend profit 500 -391 400 38 0 Cash Flow Jan-Sept 2004 20 20

  21. Slide 21: Analyst Presentation Third Quarter 2004

    Analyst Presentation Third Quarter 2004 November 9th, 2004

Snam Rete Gas — Q3 2004 Earnings Presentation on 6ix