Iren S.p.a. · MIL:IRE
Iren — 9M 2013 Earnings Presentation
15 slides from Iren's earnings presentation, Nov 15, 2013
Slide 1: 2013 – 9M Results
15th of November 2013 2013 – 9M Results
Slide 2: 2013 – Key Operating Facts
2013 – KEY OPERATING FACTS The commissioning of the OLT LNG terminal successfully started at the end of August and should end within 2013. 9 months The Integrated Environmental System in Parma (PAI) has 2013 been completed and the commissioning successfully started. The non-proportional demerger of
Slide 3: 9M 2013 – Remarkably good results
9M 2013 – Remarkably good results. EURm 9M ‘12 9M ‘13 ∆ ∆% REVENUES 3,148 2,470 -677.9 -21.5% EBITDA 417 476 +59.8 +14.4% EBITDA (margin) 13.2% 19.3% EBIT 209 259 +50.1 +24.0% NET PROFIT 68 94 +26.2 +38.7% GROSS CAPEX 222 193 -28.7 -13.0% NFP 2,555* 2,520 -34.9 -1.4% Revenues down by 21.5%: The redu
Slide 4: EBITDA Bridge – Confirming the positive trend in unregulated and regulated activities
EBITDA BRIDGE – Confirming the positive trend both in unregulated and regulated activities. EBITDA BRIDGE (m€) 9 5 476 34 21 417 (4) (6) Unreg. Activities +55m€ Reg. Activities +10m€ 9M '12 Generation and Market Infrastruct. Water Waste Other 9M '13 DH EBITDA bridge - Key Elements: Growing hydroelec
Slide 5: Generation and DH – Significant results in all the sectors
GENERATION AND DH – Significant results in all the sectors. 9M ’13 vs. 9M ’12 Strong improvements in Thermoelectric Cogen. 9M '12 9M '13 Δ€m Δ% confirmed thanks to the spark-spread increase, arising Revenues 697 677 (20) -3% from the optimization of the gas procurement policy and higher profitabilit
Slide 6: Market – Outstanding performance in gas sector together with a sharp improvement in electricity sales
MARKET – Outstanding performance in gas sector together with a sharp improvement in electricity sales. 9M ’13 vs. 9M ’12 Gas and Heat Sales: The significant results reported in the 9M '12 9M '13 Δ€m Δ% last quarters are confirmed, thanks to an optimized Revenues 2,981 2,204 (777) -26% procurement po
Slide 7: Energy Infr. – Positive results in both gas and electricity networks
ENERGY INFR. – Positive results in both gas and electricity networks. 9M ’13 vs. 9M ’12 Electricity networks: The results are positively impacted 9M '12 9M '13 Δ€m Δ% mainly by cost savings and a number of extraordinary items, Revenues 274 273 (1) 0% reported in the Parma and Turin areas. EBITDA 126
Slide 8: Water – Higher EBITDA compared to 9M 2012
WATER – Higher EBITDA compared to 9M 2012. 9M ’13 vs. 9M ’12 9M '12 9M '13 Δ€m Δ% Slight increase in Revenues: tariff increases, linked to the new Temporary Tariff Method (MTT) drove the growth in Revenues 320 329 9 3% revenues, in spite of the negative effect of IFRIC 12 (-8m€). EBITDA 87 92 5 6% E
Slide 9: Waste – Negative impact of the shutdown of the WTE in Reggio Emilia
WASTE - Negative impact of the shutdown of the WTE in Reggio Emilia. 9M ’13 vs. 9M ’12 Stable revenues: the tariffs increase offset the absence of 9M '12 9M '13 Δ€m Δ% revenues from heat production due to the shutdown of the Revenues 157 158 1 1% Reggio Emila WTE. EBITDA 31 27 (4) -13% EBIT 10 8 (2)
Slide 10: From EBIT to Net Profit
From EBIT to Net Profit. 9M ‘12 9M ‘13 ∆% EBIT 208.5 258.6 +24.0% Financial charges (73.5) (60.1) • Lower Financial charges, due to the decrease in NFP, more than offset the Companies consolidated with E.M. 5.4 10.9 write-down of the “Energia Italiana” participation Adj. in participations (10.2) (10
Slide 11: Cash-Flow & Debt Structure
CASH-FLOW & DEBT STRUCTURE. NFP Bridge 30.09.2013 Interest rate* and Debt Structure** 2,555 2,520 76 29 193 9 (103) 25% 42% (154) (85) 33% Fixed Variable Swap The steady decrease in NWC and better capex control in line with the budget/business plan drove the reduction in NFP, compared to FY 2012.
Slide 12: Annexes
ren Annexes Pag. 12 of 15
Slide 13: Market Scenario
Market Scenario. 9M ‘12 9M ‘13 Δ% • In the first 9M of the 2013 Brent average Brent USD / bbl 112.2 108.5 -3% price stood at 108.5 $/bbl, marking a 3% decrease vs. 9M 2012. USD / € 1.28 1.32 3% • USD/€ exchange rate up by 3% Brent € / bbl 87.6 82.3 -6% • Gas demand fell by 8%, compared to the first
Slide 14: Balance Sheet
Balance Sheet. €m 31.12.2012 30.09.2013 Net fixed assets 4,735 4,471 Net Working Capital 235 150 Funds (457) (421) Other assets and liabilities (4) 318 Net invested Capital 4,509 4,518 Net Financial Position 2,555 2,520 Group shareholders’ equity 1,954 1,998 Total Funds 4,509 4,518 Pag. 14 of 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