Hera S.p.A. · MIL:HER
Hera — Q1 2005 Earnings Presentation
13 slides from Hera's earnings presentation, May 2005
Slide 1: 1Q2005 Hera Group presentation
1Q2005 Hera Group presentation 1
Slide 2: Y2005 has been characterized by a stream of achievements
Y2005 has been characterized by a stream of achievements: Corporate Governance • A new BoD was appointed in April. Hera reference territory Further penetration of the Hera Gas market: • 1,500 new clients (consuming to 10 mln mc .. Gasgas srl Tecnometano srl yearly consumptions) attained through Tecn
Slide 3: +15.6% EBITDA Growth
mln euro 1Q ’04* % 1Q ‘05 % Inc. % +15.6% EBITDA Growth Value of Prod. 440.4 100% 551.2 100% +25.2% • First quarter 2005 results highlight a Ebitda 90.9 20.6% 105.1 19.1% +15.6% growth in line with the Budget 2005 Ebit 60.0 13.6% 67.7 12.3% +12.8% and the Business Plan. Pre Tax Profit 53.7 12.2% 59.
Slide 4: Value of Production, Ebitda and Pre tax Profit
Value of Production: +12.3% mln euro 1Q ’04* % 1Q ‘05 % Inc. % Value of Prod. 490.7 100% 551.2 100% +12.3% • Increase reached in all business areas. Operating costs (335.1) (68.3)% (386.2) (70.0)% +15.2% Personnel costs (56.4) (11.5)% (59.9) (10.9)% +6.2% Ebitda: +6.0% Ebitda 99.2 20.2% 105.1 19.1%
Slide 5: SAP ISU Implementation and NFP
SAP ISU Implementation • SAP ISU implementation process is on SAP implementation schedule track. About 70% of Group turnover is invoiced by new SAP platform (unique LOCs Bo Rim Rav For Imo Fer local utility in Italy). Schedule 9 9 9 9 Oct. Oct. • As planned, in 1Q Bologna and Ravenna LOCs froze temp
Slide 6: Breakdown by business
Breakdown by business • Development in Gas sales/whole sale Ebitda Growth: Breakdown by business and cost reduction allowed to mln euro 105.1 2.1 significantly reduce impact of 6.4 1.4 99.2 distribution tariff reduction (170/’04). 6.0 (10.0) • All businesses provide tangible 1Q 2004 Energy Energy Wa
Slide 7: Waste
Sales: + 12.4 % WASTE 1Q ’04* % 1Q ’05° % Inc. % 1Q 2005 Sales 82.3 100% 92.5 100% +12.4% Fea WTE Plant +2.8 C.E. of Ravenna (WTE) +6.2 Operating costs (40.1) (48.7)% (41.1) (44.4)% +2.5% Organic Growth +1.2 Total Increase +10.2 Personnel costs (21.0) (25.5)% (23.8) (25.7)% +13.3% Ebitda 21.2 25.8%
Slide 8: Water
WATER 1Q ’04* 1Q ’05° Inc. % Sales: + 10.7 % % % 1Q 2005 Sales 62.7 100% 69.4 100% +10.7% Tariff increase +1.5 Operating costs (32.1) (51.2)% (36.1) (52.0)% +12.5% Organic growth +2.2 Other +3.0 Personnel costs (14.0) (22.3)% (15.3) (22.0)% +9.3% Total Increase +6.7 Ebitda 16.6 26.5% 18.0 25.9% +8.4
Slide 9: Gas
Sales: + 17.6 % GAS 1Q ’04* % 1Q ’05° % Inc. % Sales 250.6 100% 294.7 100% +17.6% • Sales increase is mainly driven by Operating costs (186.6) (74.5)% (231.5) (78.6)% +24.1% larger volumes and “pass through“ raw material costs increases. Personnel costs (9.4) (3.8)% (11.0) (3.7)% +17.0% Ebitda 54.6
Slide 10: Electricity
ELECTRICITY 1Q ’04* 1Q ’05° Inc. % Sales: + 20.9 % % % Sales 51.2 100% 61.9 100% +20.9% The increase is mainly related to “pass Operating costs (47.3) (92.4)% (60.3) (97.4)% +27.5% through” costs included in tariff. Personnel costs (1.1) (2.1)% (0.4) (0.6)% -63.6% Ebitda 2.8 5.5% 1.2 1.9% -57.1% * P
Slide 11: Others business
OTHERS 1Q ’04* 1Q ’05° Inc. % Sales: + 15.9 % % % Sales 30.9 100% 35.8 100% +15.9% • Positive results achieved in Public Lighting (increase of lighting towers). Operating costs (21.8) (70.6)% (23.5) (65.6)% +7.8% • Increase in District Heating and Heat Personnel costs (5.1) (16.5)% (6.2) (17.3)% +21
Slide 12: Conclusions
Conclusions • The 1Q’05 results confirm the Group Ebitda historical double digit growth trends thanks to the contribution of: • Strategic External Growth activities (+10% growth contribution) • Strong Internal Growth drivers (+6% contribution from Organic Growth and Synergy exploitation) able to mor
Slide 13: Conclusions: Ready to expand Group growth potentials
Conclusions • Strategic issues: • Vertical Integration in energy businesses: • Possible acquisition of 90% stake in a mid size wind farm (project portfolio of about 30-50 MW installed capacity) – due diligence already in progress. • Acquisition of two Wind farms in south Italy dropped due to investm