Slide 1: 2011 – FY Results
4th of April 2012 2011 – FY Results
Slide 2: FY 2011 – A difficult year underpinned by a gloomy scenario and M&A activity
FY 2011 – A difficult year underpinned by a gloomy scenario and M&A activity. FY ‘10 – FY ’11 EBITDA (€m) -1.6% In spite of a very difficult scenario, the Group experienced only a slight decrease in EBITDA driven by a decline in Generation. 602 592 FY ‘10 FY ‘11 FY ‘10 – FY’11 EBIT (€m) The drop in
Slide 3: FY 2011 – Significant impact of non-recurrent elements
FY 2011 – Significant impact of non-recurrent elements. (1) EURm FY ‘10 FY ‘11 ∆ ∆% REVENUES 3,391 3,520 129.2 +3.8% EBITDA 602(2) 592 -9.8 -1.6% EBIT 337 308 -28.4 -8.4% NET PROFIT 177 -108 -285.0 n.a. NET PROFIT ADJ.(3) 168 155 -12.9 -7.7% CAPEX 536 472 -63.5 -11.8% NFP 2,260 2,653 +392.7 +17.4% R
Slide 4: EBITDA Bridge: positive regulated activities did not offset fall in Cogen
EBITDA BRIDGE: A positive performance in regulated activities did not offset completely a fall in Cogen. EBITDA BRIDGE 602 4 5 5 1 592 (22) (3) 38% 36% 62% Unregulated activities Regulated activities 64% -18€m +8€m Unregulated activities Regulated activities Slight decrease in EBITDA - Key Elements:
Slide 5: Generation of electricity and heat: growth in electricity volumes despite overcapacity
GENERATION OF ELECTRICITY AND HEAT: growth in electricity volumes despite overcapacity. FY ’11 vs. FY ’10 Higher profitability in Hydro in spite of a decrease in FY '10 FY '11 Δ€m Δ% volumes (-4% IREN vs -11% at national level). The improvement is underpinned by the increase in GC Revenues 697 785 8
Slide 6: Market: strong increase in Gas margin confirmed
MARKET: strong increase in Gas margin confirmed. FY ’11 vs. FY ’10 Gas and Heat Sales: The strong growth in gas and heat FY '10 FY '11 Δ€m Δ% margins offset the lower volumes sold to end clients (due to milder winter season) and it is the result of the successful Revenues 2.866 3.072 206 7% renegoti
Slide 7: Energy Infrastructure: slight growth in spite of negative one-off
ENERGY INFR.: slight growth in spite of negative one-off. FY ’11 vs. FY ’10 Gas networks: Positive trend maintained thanks mainly to FY '10 FY '11 Δ€m Δ% higher revenues (AEEG 206/09) and synergies. Revenues 419 437 18 4% Electricity networks: the higher costs for improving energy efficiency is the
Slide 8: Water: positive performance thanks to tariff increase agreed with AATO's
WATER: Positive performance thanks to tariff increase agreed with AATO’s. FY ’11 vs. FY ’10 Revenues down by 2%: tariff increase in all the ATOs did FY '10 FY '11 Δ€m Δ% not completely offset the decrease in volumes caused by a change in consolidation perimeter (-4mcm). Revenues 447 438 (9) -2% EBIT
Slide 9: Waste: CIP6 expiration partially offset by synergies
WASTE: CIP6 expiration partially offset by synergies FY ’11 vs. FY ’10 EBITDA down by 6%: The increase in tariffs and efficiencies didn’t completely offset the negative impact of FY '10 FY '11 Δ€m Δ% CIP 6 expiry. Revenues 222 217 (5) -2% Positive trend in special waste continues (+24%). EBITDA 45 4
Slide 10: From EBIT to Net Profit and adjustments
From EBIT to Net Profit and adjustments FY ‘10 FY ‘11 ∆ EBIT 336.7 308.3 (28.4) Financial charges (60.8) (67.0) Companies consolidated with E.M. 13.1 (3.8) Adjustment to participations. (0.4) (223.3) EBT 288.6 14.2 (274.4) Taxes (104.7) (114.5) Net profit from ceased activities 1.8 1.0 Minorities (8
Slide 11: Cash-flow & Debt Structure
CASH-FLOW & DEBT STRUCTURE NFP Bridge 31.12.2011 Interest rate* and Debt Structure** 121 1 2.653 493 2,260 99 151 (38) (209) (224) 31% 38% 31% Fixed Variable Swap Only 50% of the 151€m growth in NWC is attributable to payables/receivables trend. The rest is a temporary effect linked mainly to GC a
Slide 12: Annexes
ren Annexes 12
Slide 13: Market Scenario
Market Scenario FY ‘10 FY ‘11 Δ% • Brent 2011 FY average price stood at 111.3 Brent USD / bbl 79.5 111.3 40% $/bbl, up by 40% compared to FY 2010. USD / € 1.33 1.39 5% • USD/€ exchange rate was 1.39, +5% YoY. Brent € / bbl 60.0 80.0 33% • Gas demand dropped by 6%, mainly because Gas Demand (bcm) 82.
Slide 14: Balance Sheet
Balance Sheet €m 31.12.2010 31.12.2011 Net fixed assets 4,566 4,653 Net Working Capital 137 288 Funds (325) (417) Other assets and liabilities (36) (27) Net invested Capital 4,342 4,497 Net Financial Position 2,260 2,653 Group shareholders’ equity 2,082 1,844 Total Funds 4,342 4,497 14
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