Acea S.p.A. · MIL:ACE
Acea — 9M 2019 Earnings Presentation
17 slides from Acea's earnings presentation, Nov 13, 2019
Slide 1: 9M 2019 Results
9M 2019 Results Rome, 13 November 2019
Slide 2: Executive Summary: Results and Guidance
Executive Summary Acea Group THE POSITIVE RESULTS DELIVERED IN 9M 2019 CONFIRM THE GROWTH TREND THAT STARTED IN THE LAST TWO YEARS, SUPPORTED BY OUR MAJOR INVESTMENT PROGRAMME AND DRIVEN BY OUR COMMITMENT TO TECHNOLOGICAL INNOVATION AND SUSTAINABILITY RESULTS 9M 2019 • EBITDA €769m +12% versus 9M 20
Slide 3: Executive Summary: Key Events 9M 2019
Executive Summary Acea Group TRANSACTIONS COMPLETED HAVE LED TO DEVELOPMENT OF REGULATED BUSINESSES AND EXPANSION IN OTHER MARKET SEGMENTS ALREADY IDENTIFIED AS STRATEGIC ACQUISITION OF A 51% STAKE IN ‘‘PESCARA DISTRIBUZIONE GAS’’ COMPLETED IN MARCH BUSINESS PLAN 2019-2022 APPROVED ON 2 APRIL, TARGE
Slide 4: Executive Summary: Key Events October 2019
Executive Summary Acea Group ACQUISITION OF 60% INTEREST IN BERG, A PROVIDER OF LIQUID WASTE TREATMENT SERVICES • Total Enterprise Value: €10m • Total EBITDA: €1.6m • Authorised capacity: 143k tonnes per year ACQUEDOTTO DEL FIORA’S ARTICLES OF ASSOCIATION AND SHAREHOLDER AGREEMENTS AMENDED TO ENABLE
Slide 5: 9M 2019 financial highlights
9M 2019 financial highlights Acea Group 9M 2019 9M 2018 % change EBITDA GUIDANCE RAISED FOR 2019 (€m) (a) (b) (a/b) Initial guidance: +5%/+6% Consolidated revenue 2,346.2 2,173.9 +7.9% Guidance provided in H1 2019: ≥ +7% EBITDA 2018 EBITDA 769.4* 685.2 +12.3% €933m Updated guidance: ≥ +10% EBIT 402.
Slide 6: EBITDA
EBITDA Acea Group 1% 5% 2% Water EBITDA from Energy Infrastructure 6% non-regulated 19% Commercial & Trading businesses Environment EBITDA 9M 2019 48% Overseas Engineering & Services 38% EBITDA from regulated 81% businesses EBITDA (€m) Average Group workforce 77.5** 14.3 15.3 769.4 9M 2019 9M 2018 C
Slide 7: EBITDA and quantitative data Water
EBITDA and quantitative data Acea Group 9M 2019 financial highlights KEY HIGHLIGHTS Line-by-line consolidation of Gori: +€49.7m Water Contribution of Pescara Distribuzione Gas: +€1.2m EBITDA main drivers Companies consolidated using equity method: +€2.7m OCTOBER 2019: Acquedotto del Fiora’s Articles
Slide 8: EBITDA and quantitative data Energy Infrastructure
EBITDA and quantitative data Acea Group 9M 2019 financial highlights KEY HIGHLIGHTS Distribution: +€17.0m Generation: -€4.7m due to lower price of energy sold Energy (photovoltaic contribution +€2.3m) Infrastructure Public Lighting: +€2.0m Over 400 km of MV/LV network renewed and expanded EBITDA mai
Slide 9: EBITDA and quantitative data Commercial & Trading
EBITDA and quantitative data Acea Group 9M 2019 financial highlights KEY HIGHLIGHTS Increased sales of electricity and gas to free market customers Commercial & Trading Reduced margins, essentially due to cut in late payment component in Central Italy in RCV tariff EBITDA main drivers OCTOBER 2019:
Slide 10: EBITDA and quantitative data Environment
EBITDA and quantitative data Acea Group 9M 2019 financial highlights KEY HIGHLIGHTS Environment CIP6 feed-in tariffs expired on August 1st , 2019 (-7.4 €m) EBITDA main drivers Consolidation of Demap (+1.0 €m) Acquisition of 60% interest in Berg, a provider of liquid waste treatment services (authori
Slide 11: EBITDA and quantitative data Overseas, Engineering & Services, Holding
EBITDA and quantitative data Acea Group 9M 2019 financial highlights Positive contribution Engineering Margin in line with Overseas from Aguas de San & Services previous year Pedro (€m) 9M 2019 9M 2018 (€m) 9M 2019 9M 2018 EBITDA 12.9 11.1 EBITDA 11.0 10.9 Capex 5.3 4.0 Capex 1.2 0.8 9M 2019 9M 2018
Slide 12: EBIT and net profit
EBIT and net profit Acea Group EBIT (€m) NET PROFIT (€m) 381.0 402.5 214.8 218.9 9M 2018 9M 2019 9M 2018 9M 2019 TAX RATE 30.4% 30.0% (€m) 9M 2019 9M 2018 % change Increase in depreciation linked to: Depreciation 306.7 251.8 +21.8% increased capex across all areas of business and the IT platform
Slide 13: Capex
Capex Acea Group Strong capex growth, above all in regulated businesses Investment in non- 17% CAPEX (€m) regulated businesses Investment in regulated businesses 83% 16 9 529 40 22 29 413 9M 2018 Water Energy Commercial & Environment Other* 9M 2019 Infrastructure Trading Capex 254 196 32 29 18 • Rep
Slide 14: Cash flow
Cash flow Acea Group ( (€m) 9M 2019 9M 2018 EBITDA 769 685 Change in working capital (118) (177) CAPEX (529) (413) Excellent performance of credit FREE CASH FLOW 122 95 collection, above all at Acea Energia Net finance income/(costs) (66) (66) Change in provisions (81) (59) Major impact on net d
Slide 15: Net debt
Acea Group Net debt 30 Sept 2019 31 Dec 2018 30 Sept 2018 Change Change (€m) (a) (b) (c) (a-b) (a-c) Net debt 2,960.3* 2,568.0 2,631.1 392.3 329.2 Medium/long-term 3,467.5 3,341.4 3,359.9 126.1 107.6 Short-term (507.2) (773.4) (728.8) 266.2 221.6 30 Sept 2019 16 May 2019 - Issue of bonds worth €500m
Slide 16: Q&A Session
Acea Group Acea Group 9M 2019 Results Rome, 13 November 2019 Q&A Session 9M 2019 Results 16
Slide 17: Disclaimer
Disclaimer Acea Group THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT REFLECT THE COMPANY’S MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL AND OPERATIONAL PERFORMANCE OF THE COMPANY AND ITS SUBSIDIARIES. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON ACEA S.