Iren S.p.a. · MIL:IRE

Iren — Q1 2011 Earnings Presentation

14 slides from Iren's earnings presentation, May 13, 2011

  1. Slide 1: 1Q 2011 - Results

    13th of May 2011 1Q 2011 - Results

  2. Slide 2: 1Q 2011 – Improved performances in spite of tough scenario

    1Q 2011 – Improved performances in spite of tough scenario 1Q ‘10 – 1Q ’11 EBITDA (€m) +0.8% A well-balanced business portfolio and the coverage of the whole value chain allows IREN to keep its profitability even in a 204 205 tough market scenario. 1Q ‘10 1Q ‘11 1Q ‘10 – 1Q ’11 EBIT (€m) 204 +2.8%20

  3. Slide 3: 1Q 2011 – Increase in results

    1Q 2011 – Increase in results EURm 1Q ‘10 1Q ‘11 ∆ ∆% (*) REVENUES 1,012 973 -39 -3.9% EBITDA 204** 205 1 0.8% EBIT 144 148 4 2.8% NET PROFIT 76 84 8 10.1% CAPEX 70 110 40 58.2% NFP 2,260*** 2,350 90 3.9% Revenues down by -3.9% due mainly to lower volumes exchanged on IPEX. Stable EBITDA underpinned

  4. Slide 4: EBITDA BRIDGE: Stable Ebitda with mixed results in SBUs

    EBITDA BRIDGE: Stable Ebitda with mixed results in SBUs EBITDA BRIDGE Unregulated Activities Regulated Activities - 6€m + 7€m EBITDA in line with 1Q 2010 - Key Elements: The ability of the Company to cope with the worsened scenario conditions . Generation suffered mainly from a loss in DH volumes (a

  5. Slide 5: GENERATION OF ELECTRICITY AND HEAT: Weak scenario elements partially offset by hydro-gen.

    GENERATION OF ELECTRICITY AND HEAT: Weak scenario elements partially offset by hydro-gen. 1Q ’11 vs. ’1Q 10 1Q '10 1Q '11 Δ€m Δ% Significant increase in Hydro-gen thanks to the coming on stream of the Valle Orco repowered turbines Revenues 227 231 4 1% (volumes +48%) .The Valle Orco hydro plant will

  6. Slide 6: MARKET: Increasing margins in a very tough scenario

    MARKET: Increasing margins in a very tough scenario 1Q ’11 vs. ’1Q 10 1Q '10 1Q '11 Δ€m Δ% Gas and Heat Sales: the drop in gas volumes sold, due to a mild winter, was more than offset by successful re-negotiations Revenues 953 907 (46) -5% of gas contracts and the Company‟s low exposure to LT EBITDA

  7. Slide 7: ENERGY INFR.: The Highest EBITDA increase among the Company's SBUs

    ENERGY INFR.: The Highest EBITDA increase among the Company’s SBUs 1Q ’11 vs. ’1Q 10 1Q '10 1Q '11 Δ€m Δ% Electricity and Gas networks: increase in profitability Revenues 103 106 3 4% thanks mainly to higher revenues and improved efficiency. EBITDA 53 59 6 12% DH Networks: EBITDA up by 11% because o

  8. Slide 8: WATER: Positive performance thanks to tariff increase

    WATER: Positive performance thanks to tariff increase 1Q ’11 vs. ’1Q 10 1Q '10 1Q '11 Δ€m Δ% Revenues up by 5% thanks to an increase in tariffs in all Revenues 97 102 5 5% the ATOs. EBITDA 30 31 1 4% Ebitda up by 3%: the tariff increase was partially offset by EBIT 15 15 - 6% the decrease in volumes

  9. Slide 9: WASTE: Extraordinary maintenance and CIP6 expiration

    WASTE: Extraordinary maintenance and CIP6 expiration 1Q ’11 vs. ’1Q 10 1Q '10 1Q '11 Δ€m Δ% EBITDA DOWN 3€m: the significant increase in special waste (+26%), didn‟t fully offset the loss in profitability Revenues 57 53 (4) -7% caused mainly by the expiration of Piacenza WTE‟s CIP6 EBITDA 15 12 (3)

  10. Slide 10: CASH-FLOW & DEBT STRUCTURE

    CASH-FLOW & DEBT STRUCTURE NFP Bridge 31.03.2011 Debt Structure and Interest rate  Rise in NFP caused mainly by the seasonal working capital trend. 6%  Solid financial structure: average long-term debt 35% duration of about 4.6 years.  39% of debt at variable interest rate. 59%  1Q 2011 average

  11. Slide 11: Annexes

    ren Annexes 11

  12. Slide 12: Market Scenario

    Market Scenario 1Q ‘10 1Q ‘11 Δ% • Brent 1Q 2011 average price stood at 105,0 Brent USD / bbl 76.6 105 37% $/bbl, increased by 37% YoY. USD / € 1.38 1.37 -1% • USD/€ change rate was 1,37 -1% YoY. Brent € / bbl 55.4 76.7 38% • Gas demand dropped by 2% (+ 1.2% Gas Demand (bcm) 28.8 28.1 -2% de-seasona

  13. Slide 13: Balance Sheet

    Balance Sheet €m 31.12.2010 31.03.2011 Net fixed assets 4,566 4,629 Net Working Capital 137 270 Funds (325) (327) Other activities and liabilities (36) (44) Net invested Capital 4,342 4,528 Net Financial Position 2,260 2,350 Group shareholders equity 2,082 2,178 Total Funds 4,342 4,528 D/E 1.08 1.08

  14. Slide 14: 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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