Iren S.p.a. · MIL:IRE

Iren — H1 2012 Earnings Presentation

14 slides from Iren's earnings presentation, Aug 29, 2012

  1. Slide 1: 2012 – 1H Results

    29th of August 2012 2012 – 1H Results

  2. Slide 2: 1H 2012 – Good operating results

    1H 2012 – Good operating results. EURm 1H ‘11 1H ‘12 ∆ ∆% REVENUES 1,686 2,267 +580.8 +34.4% EBITDA 327 336 +9.5 +2.9% EBIT 194 195 +1.3 +0.6% NET PROFIT 96 75 -21.0 -21.8% CAPEX 237 108 -129.3 -54.6% NFP 2,653* 2,654 +1.0 - Revenues up by 34.4%: The strong increase in revenues is mainly due to high

  3. Slide 3: EBITDA Bridge: Increase in EBITDA driven by good results in Generation

    EBITDA BRIDGE: Increase in EBITDA driven by good results in Generation. EBITDA BRIDGE 327 21 336 1 (6) (2) (3) (2) EBITDA bridge - Key Elements: Higher hydroelectric volumes (in countertrend compared to national production) sold at higher prices, together with the Telessio one-off (repayment for str

  4. Slide 4: Generation of Electricity and Heat: Higher volumes and a positive one-off

    GENERATION OF ELECTR. AND HEAT: Higher volumes and a positive one-off more than offset squeeze in margins in cogen. 1H ’12 vs. 1H ’11 Higher volumes and profitability in Hydro. IREN’s hydro 1H '11 1H '12 Δ€m Δ% production stood at 548 Gwh (+16% IREN vs -21% at Revenues 371 520 149 40% national level

  5. Slide 5: Market: Improvement in gas sector didn't completely offset electricity

    MARKET: Improvement in gas sector didn’t completely offset the performance in electricity market. 1H ’12 vs. 2H ’11 Gas and Heat Sales: The positive trend reported in 1Q 1H '11 1H '12 Δ€m Δ% 2012 continues thanks to an optimized procurement Revenues 1,484 2,195 711 48% portfolio which allowed the Gr

  6. Slide 6: Energy Infrastructure: stable profitability

    ENERGY INFR.: stable profitability. 1H ’12 vs. 1H ’11 Gas networks: Achieved synergies did not completely offset 1H '11 1H '12 Δ€m Δ% the decrease in revenues, which is partially reflected on Revenues 217 214 (3) -1% EBITDA. EBITDA 109 107 (2) -1% Electricity networks: Profitability was affected mai

  7. Slide 7: Water: stable performance despite higher electricity costs and lower volumes

    WATER: stable performance in spite of growth in electricity costs and lower volumes distributed. 1H ’12 vs. 1H ’11 1H '11 1H '12 Δ€m Δ% Stable Revenues: Tariff increase in all the ATOs more than offset the change in consolidation perimeter (-4€m). Revenues 212 213 1 1% EBITDA 58 59 1 2% Slight incre

  8. Slide 8: Waste: Tariff increase did not completely offset lower volumes

    WASTE: Tariff increase did not completely offset lower volumes and higher collection costs. 1H ’12 vs. 1H ’11 Stable revenues: thanks to higher revenues from collateral 1H '11 1H '12 Δ€m Δ% services, which offset the change in consolidation perimeter. Revenues 107 106 (1) -1% EBITDA 24 21 (3) -12% D

  9. Slide 9: From EBIT to Net Profit

    From EBIT to Net Profit 1H ‘11 1H ‘12 ∆% EBIT 194.1 195.4 +0.6% • Increase in financial charges Financial charges (31.6) (44.9) caused by higher interest rate and debt. Companies consolidated with E.M. 8.8 12.1 • Write-down of Sinergie Italiane Adj. in participations (0.4) (10.2) stake. EBT 171.0 15

  10. Slide 10: Cash-Flow & Debt Structure

    CASH-FLOW & DEBT STRUCTURE NFP Bridge 30.06.2012 Interest rate* and Debt Structure** 2,653 147 22 10 2,654 26 (80) (103) (21) 35% 38% 27% Fixed Variable Swap  Stable NFP driven mainly by a remarkable improvement in NWC management and by cutting in capex in line with budget. Relevant decrease in NFP

  11. Slide 11: Annexes

    ren Annexes 11

  12. Slide 12: Market Scenario

    Market Scenario 1H ‘11 1H ‘12 Δ% • In 1H 2012 Brent average price stood at Brent USD / bbl 111.1 113.6 2% 113.6 $/bbl, substantially stable compared to 1Q 2011. USD / € 1.40 1.30 -8% • USD/€ exchange rate was 1.30, -8% YoY. Brent € / bbl 79.1 87.3 10% • Gas demand fell by 2%, mainly because of Gas D

  13. Slide 13: Balance Sheet

    Balance Sheet €m 30.06.2012 31.12.2011 Net fixed assets 4,662 4,653 Net Working Capital 314 288 Funds (394) (417) Other assets and liabilities (31) (27) Net invested Capital 4,551 4,497 Net Financial Position 2,654 2,653 Group shareholders’ equity 1,897 1,844 Total Funds 4,551 4,497 13

  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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