Iren S.p.a. · MIL:IRE

Iren — H1 2014 Earnings Presentation

15 slides from Iren's earnings presentation, Aug 29, 2014

  1. Slide 1: 2014 – 1H Results

    29th of August 2014 2014 – 1H Results

  2. Slide 2: Key facts of the period

    Key facts of the period. Extremely mild winter season. Extraordinary operations:  AES Torino de-merger;  Voluntary public take-over offer on Società Acque Potabili;  Acquisition of further stakes in TRM (Turin WTE) and Tecnoborgo (Piacenza WTE). Regulatory framework changes:  Integrated water se

  3. Slide 3: Impact of external items on EBITDA

    Impact of external items on EBITDA. Turin Day Reggio E. Day HEAT PRODUCTION (GWht) Degrees Degrees C -19% 3,000 3,000 1,842 1,494 L I 2,000 2,000 Total 2013 2013 1H '13 1H '14 M impact 2014 2014 A 1,000 1,000 GAS SALES (GWht) ~30m€ T 0 Gen Apr Jul Oct 0 Gen Apr Jul Oct -28% 1,726 E 1,242 Δ vs. 2013

  4. Slide 4: Strong recovery in operating performances compared to 1Q 2014

    Strong recovery in operating performances compared to 1Q 2014. Income statement Ebitda Bridge m€ 1H '131 1H '141 Δ Δ% 380 21 371 24 11 Revenues 1,788 1,521 -266.6 -14.9% (39) (20) (6) Ebitda 380 371 -9.0 -2.4% Eb itda margin 21.2% 24.4% Ebit 252 229 -23.1 -9.2% Net profit 112 77 -35.4 -31.5%  Reven

  5. Slide 5: Generation and DH – Negative external variables

    GENERATION AND DH – Negative external variables. m€ 1H '13 1H '14 Δ Δ%  Cogen/Thermoelectric production sector: lower Revenues 540 463 -77 -14% volumes (-17%) and prices (PUN -18%), partially offset by ETS certificates allocation and sale to end clients. Ebitda 156 118 -38 -25% Ebit 122 72 -50 -41%

  6. Slide 6: Market – Partial recovery compared to the first three months

    MARKET – Partial recovery compared to the first three months of the year. m€ 1H '13 1H '14 Δ Δ%  Gas Sales affected by the CCI recalculation mechanism Revenues 1,681 1,299 -382 -23% and the decrease in volumes sold (mild winter season). Ebitda 68 48 -20 -29%  Electricity sales: absence of the nega

  7. Slide 7: Distribution – Extraordinary items affect both sectors

    DISTRIBUTION – Extraordinary items affect both sectors. ENERGY INFRASTRUCTURE m€ 1H '13 1H '14 Δ Δ% • Electricity networks: absence of the extraordinary items Revenues 160 161 1 1% accounted for in the previous years and lower margins from services to end clients. Ebitda 76 70 -6 -8% Electricity 40

  8. Slide 8: Waste – Strong improvement compared to 1Q 2014 and 1H 2013

    WASTE – Strong improvement compared both to 1Q 2014 and 1H 2013. m€ 1H '13 1H '14 Δ Δ%  Higher revenues and EBITDA linked to an increase in Revenues 106 116 10 9% electricity and heat production, in the tariff for waste collection and disposal, together with an improvement in Ebitda 17 28 11 62% sp

  9. Slide 9: From EBITDA to Net Profit

    From EBITDA to Net Profit. 1H '13 1H '14 Δ% EBITDA 379.6 370.5 -2.4% D&A -101.2 -118.4 Higher D&A related mainly to the Tusciano and Turbigo Provisions -26.4 -23.2 plants. EBIT 252.0 228.9 -9.2% Financial charges -47.0 -49.9 Companies consolidated with e.m. 10.0 -11.2 The negative results in C.C.E.M

  10. Slide 10: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. Including 47m€ Capex for the increase in IREN’s stake in TRM and Tecnoborgo WTEs 2,525 2,192 74 3 2,242 157 (333) 45 (87) (31) (111) NFP IFRS 11 NFP Net Profit D&A and NWC Capex Disposals Dividends Others NFP 31.12.2013 31.12.2013 ΔNet Variation and cash-in 31.03.2014 Rep.

  11. Slide 11: Interest rate and debt structure

    Interest rate and debt structure. Interest rate*  17% of net debt at variable interest rate. 22%  Average long-term debt duration of about 4.6 17% 61% years. Fixed Variable Swap  Stable cost of debt at 3.9%. Debt structure  Exploitation of the credit market opportunities: bonds account for 13% o

  12. Slide 12: Annexes

    ren Annexes Pag. 12 of 15

  13. Slide 13: Market Scenario

    Market Scenario. 1H '13 1H '14 Δ% Brent USD/bbl 107.5 108.9 1.3% USD/€ 1.31 1.37 +4.3% Brent €/bbl 81.9 79.5 -2.9% Gas Demand (bcm) 38.1 32.6 -14.4% PSV €/000 scm 294 245 -16.6% Energy Demand (Twh) 157.6 152.9 -3.0% PUN (€/Mwh) 60.6 49.5 -18,4% 2 CO €/Ton 4.3 5.5 +29.5% Green Cert. Hydro (€/Mwh) 79.

  14. Slide 14: Balance Sheet

    Balance Sheet*. FY '13 1H '14 Net fixed assets 4,526 4,527 Net Working Capital 151 197 Funds -474 -475 Other assets and liabilities -12 -21 Net invested capital 4,191 4,228 Group Sharholders' equity 1,999 1,986 Net Financial Position 2,192 2,242 Total Funds 4,191 4,228 *Restated. Pag. 14 of 15

  15. 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

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