Slide 1: H1 2017 financial results
GRUPPO SHARED VALUES” : GROWING MORE INTEGRATED 4Co)¥ THINKING NH H1 2017 financial results
Slide 2: Highlights on H1 results
Highlights on H1 results H1 main figures +16.5% (M€) +8.5% +7.6% 506 216 141 Ebitda Pre tax Net Profit A robust set of results consistent with Q1 GRUPPOHERA 01
Slide 3: More than half the way to year end
“More than” half the away to year end H1 EPS growth of last 5 years (€c) +8.1% CAGR 9,6 8,2 7,0 7,3 6,5 6,8 H'12 Adj. H'13 H'14 H'15 H'16 H'17 Of yearly 65% 60% 60% 59% 58% results: Good visibility GRUPPOHERA 02
Slide 4: H1 2017 EBITDA growth drivers
H1 2017 EBITDA growth drivers Ebitda growth drivers (M€) +7.6% +8.6 +8.9% +33,4 505,9 (6.2) 512,1 470,1 H1 '16 Internal Growth M&A Subtot. Incentives H1 '17 Recurrent growth factors drive performance GRUPPOHERA 03
Slide 5: Waste: benefitting positive market trends and M&A
WASTE: Benefitting positive market trends and M&A Ebitda growth drivers Waste volumes from third parties (M€) (kton) +7,6 +76,3 +5,8 +82,1 +7,4 121,4 116.5 (3.9) (6.2) Special waste Urban waste Waste from Mkt 2017 acquisitions Booked contribution from 1 January 2017 H1 '16 Internal M&A WTE maint. In
Slide 6: Networks: tariffs and cost savings progressing
NETWORKS: tariffs and cost savings progressing Ebitda growth drivers Ebitda breakdown by business (M€) (M€) 216,4 +2,4 212,4 (6.4) 9,0 212,4 18,8 73,3 111,3 H1 '16 Organic growth Efficiencies H1 '17 Water Gas distr. EE distr. D.H. H1 Ebitda “Quality premium” GRUPPOHERA 05
Slide 7: Energy: all market segments expanded
ENERGY: all market segments expanded Ebitda growth drivers Customer base growth (M€) (‘000) +122k customers 2.317 +23.4 +5.2 162.2 +75 +6.9 (1.8) 128.5 +47 2.195 H1 '16 Gas Electr. Power Gen. Other H1 '17 H1 '16 Gas Electricity H1 '17 Safeguarded clients main growth driver GRUPPOHERA 06 Industrial D
Slide 8: Enhanced both financial and tax profile
Enhanced both financial and tax profile H1 Financial Inc./(Expenses) H1 2017 EPS growth (M€) (%) H1'13 H1'14 H1'15 H1'16 H1'17 Cagr: +8.4% +16,9% (58,0) (45,9) +16.9% +12,9% (64,0) (66,1) (61,3) H1 Tax rate +6,6% +6,7% (%) 44,3% 42,9% 39,3% 35,7% 31,6% H1'13 H1'14 H1'15 H1'16 H1'17 (2,2%) H1'13 H1'1
Slide 9: Cash flows
Cash flows Free cash flows H1 2017 (M€) +358.1 (3.3) (15.2) +188.8 (150.8) +87.7 +7.5 (108.6) (140.4) (52.8) Op. CF NWC Provisions Capex Free CF M&A Other FCF for Div. & Min. Debt dividends change Once again: more with less GRUPPOHERA 08
Slide 10: Closing remarks
Closing remarks • Good performances, fully accounting M&A executed. Even H1 2017 EPS growth (%) though Q2 low seasonality, EPS up +16.9% double digit and comfortable cash flows. 9.6c€ • DPS at 9 Eurocents paid as promised. • H1 EPS at 9.6 Eurocents, already H1 '17 covering promised dividend of next
Slide 11: Annex H1 2017
Annex H1 2017 Investor relations team: IR@gruppohera.it Tel.+39 051 287737
Slide 12: Annex: P&L
Annex: P&L H1 Profit & Loss (M€) H1 ‘16 H1 ’17 REVENUES 2,664.8 2,956.3 +10.9% EBITDA 470.1 505.9 +7.6% Ebitda margin 17.6% 17.1% Depreciation and provisions (212.7) (243.7) EBIT 257.4 262.2 +1.9% Cost of Debt (54.4) (43.5) Figurative interests (IAS) (10.1) (10.6) Income from Associates & J.V. 6.5 8
Slide 13: Annex: Waste
Annex: Waste Leveraging on market expansion (m€) Q1 2016 Q1 2017 Ch. Q2 2016 Q2 2017 Ch. H1 2016 H1 2017 Ch. Revenues 235.4 240.2 +4.8 256.0 306.2 +90.8 491.4 546.4 +55.0 Ebitda 62.4 64.0 +1.5 54.0 57.3 +2.4 116.5 121.3 +4.8 Data Q1 2016 Q1 2017 Ch. Q2 2016 Q2 2017 Ch. H1 2016 H1 2017 Ch. Urban W. V
Slide 14: Annex: Water
Annex: Water Growing results in Water (m€) Q1 2016 Q1 2017 Ch. Q2 2016 Q2 2017 Ch. H1 2016 H1 2017 Ch. Revenues 179.4 201.8 +22.5 194.7 205.0 +10.2 374.1 406.9 +32.7 Ebitda 49.8 53.3 +3.4 56.8 58.1 +1.0 106.6 111.3 +4.7 Data Q1 2016 Q1 2017 Ch. Q2 2016 Q2 2017 Ch. H1 2016 H1 2017 Ch. Aqueduct (mm3)
Slide 15: Annex: Gas
Annex: Gas Default gas underpinned margins (m€) Q1 2016 Q1 2017 Ch. Q2 2016 Q2 2017 Ch. H1 2016 H1 2017 Ch. Revenues 561.0 650.4 +89.4 273.7 287.5 +28.1 834.7 937.9 +103.2 Ebitda 130.3 135.6 +5.4 35.0 36.2 +1.2 165.2 171.8 +6.6 Data Q1 2016 Q1 2017 Ch. Q2 2016 Q2 2017 Ch. H1 2016 H1 2017 Ch. Volumes
Slide 16: Annex: Electricity
Annex: Electricity Safeguarded clients underpinned margins (m€) Q1 2016 Q1 2017 Ch. Q2 2016 Q2 2017 Ch. H1 2016 H1 2017 Ch. Revenues 359.8 634.1 +274.4 647.0 513.4 +186.8 1,006.8 1,147.6 +140.8 Ebitda 31.6 48.4 +16.8 41.5 43.1 +22.8 73.1 91.6 +18.4 Data Q1 2016 Q1 2017 Ch. Q2 2016 Q2 2017 Ch. H1 201