Slide 1: Hera Group 2011 annual results
Hera Group 2011 annual results 10th financial report since establishment Analyst presentation, 22nd March 2012
Slide 2: 2011 results at a Glance
2011 results at a Glance 2011 annual growth rates Strong set of achievements in 2011 (%) Growth underpinned by all businesses, and +11.3% particularly by Energy activities with commercial development and procurement position posting +6.2% +6.1% net growth. +5.3% M&A included Sadori Gas and 50% JV En
Slide 3: 2011 Financial report: 10th since establishment
2011 Financial report: 10th since establishment Ever growing operating results Maintaining sustainable Debt/Ebitda (m€) 645 4 700.0 607 3.3x 567 3.2x 3.0x 3.1x 3.1x 600.0 2.8x 528 3 2.5x 500.0 427 454 386 400.0 1.8x 1.9x 293 281 291 315 334 2 300.0 243 231 221 1.3x 192 216 177 200.0 113 1 78 Ebitda
Slide 4: 2011 results in line with planning and track records
2011 results in line with planning and track records Enhancement of tariffs, 2010% 2011 Ch.% energy prices and Contribution from all volumes sold/traded. businesses and drivers. Revenues 3,877.3 4,315.9 +11.3% Ebitda 607.3 644.8 +6.2% Depreciation (223.2) (233.8) +4.7% Conservative accruals to Provi
Slide 5: All value drivers contributed to growth
All value drivers contributed to growth Ebitda growth drivers (m€) +6.2% 700 +9.0 644.8 Organic Growth fuelled by Energy +22.5 +6.0 607.3 activities (Ebitda from 107m€ to 138m€). 600 Increase in tariffs, customers, cross selling and synergies. 500 New plants: WTE Rimini reached full 400 capacity wit
Slide 6: Positive cash flows before M&A and dividends
Positive cash flows before M&A and dividends 2011 cash flows (m€) 2011 free cash generation fully funded net +401 capex by 317 m€. Working Capital in line with 2010 despite significant turnover (317) increase. +2 (50) +35 0 (117) Financial debt reduced in Q4 from 2.055 b€ (45) (127) to 1.987 b€ than
Slide 7: Capital expenditure commitments confirmed
Capital expenditure commitments confirmed Capital exp. & investments (m€) Capex further decreased in 2011 mainly due to the completion of WTE plants. 2010 2011 Waste 98.7 70.1 Water 94.2 100.6 Gas 48.8 52.2 56% capex on regulated asset base. Electricity 39.0 33.8 Other 13.3 14.0 Holding 51.8 54.2 Ca
Slide 8: WASTE: Tackling with a tough scenario
WASTE: Tackling with a tough scenario Financial highlights (m€) 2010% 2011 Ch. % Revenues up +5.3% driven by electricity production revenues (+18%) and regulated Revenues 703.1 740.1 +5.3% activities (+4%). Urban waste tariffs up by +3.3%. Ebitda 195.1 194.2 (0.5%) Economic slow down impact on Ebitd
Slide 9: WATER: Committed to reach proper returns
WATER: Committed to reach proper returns Financial highlights (m€) 2010% 2011 Ch. % Tariffs increase of +3.4% slightly offset by 160.1 158.3 -1.1% persistent slow down in works for third parties. Revenues 579.2 596.7 +3.0% Ebitda 142.0 150.2 +5.8% Ebitda reflects also efficiency improvements partial
Slide 10: Gas: still benefitting from commercial activities
Gas: still benefitting from commercial activities Financial highlights (m€) 2010% 2011 Ch. % Revenues growth mainly driven by higher commodity prices, larger trading Revenues 1,237.1 1,490.2 +20.5% volumes (+73.5%) offsetting mild winter Ebitda 193.9 208.7 +7.6% season. Ebitda increase mainly driven
Slide 11: Electricity: fast market expansion still progressing
Electricity: fast market expansion still progressing Financial highlights (m€) Revenues growth mainly driven by higher 2010% 2011 Ch. % volumes (+29.1%) related to “salvaguardia” Revenues 1,468.3 1,585.2 +8.0% services and market expansion (+25k and Ebitda 59.8 73.2 +22.5% +75k customers respectivel
Slide 12: Closing remarks
Closing remarks ‘11 results in line with plan target Strong competitiveness on energy market Business plan 2011 and positive developments on related activities underpinned positive Ebitda avg. growth (%) +5.7% +6.2% ✔ performance. Capex reduction (m€/Y) 345 317 ✔ Cash flows increase +35 ✔ Dividend p
Slide 13: 10Y Hera market multiples
GRUPPO 10Y Hera market multiples
Slide 14: 10Y market valuation Multiples
10Y market valuation Multiples* EV/Ebitda P/E 12 10,6x -16% 11 10,0x -21% 10 45 44 8,5x 43 42 9 8,0x 41 40 37,2x 39 38 8 37 36 35 32,3x 7 6,4x 5,9x 6,1x 6,3x 34 29,7x 31,4x 5,9x 33 32 6 5,0x 31 30 28,6x 29 28 5 27 26 25 23,4x 4 24 23 22 21 19,9x 3 20 19 18 17,7x 2 17 16 14,8x 15 14 11,7x 1 13 12 11