Iren S.p.a. · MIL:IRE

Iren — 9M 2015 Earnings Presentation

14 slides from Iren's earnings presentation, Nov 13, 2015

  1. Slide 1: 2015 – 9M Results

    13th November 2015 2015 – 9M Results

  2. Slide 2: Implementation of the business plan key strategic points

    Implementation of the business plan key strategic points. Process Streamlining through the centralization at “Holding level” of the main corporate functions and through the standardization of the ICT systems. Company rationalization through the merger of approximately 15 subsidiaries, 100% owned by

  3. Slide 3: 9M 2015: +11% growth in Net Profit

    9M 2015: +11% growth in Net Profit. Income statement Ebitda Bridge m€ 9M '141 9M '15 Δ Δ% +2.7% 484 18 498 10 9 Revenues 2,071 2,219 148 7.1% (2) (21) Ebitda 484 498 14 2,7% Ebit 283 253 -30 -10.6% Net profit 89 99 10 11.4% 9M 2014 Gener. and Market Networks Waste Other 9M 2015 DH  Revenues up by 7

  4. Slide 4: Generation and DH – SBU hit mainly by exogenous elements

    GENERATION AND DH – SBU hit mainly by exogenous elements. m€ 9M '14 9M '15 Δ Δ%  The increase in MSD demand led the growth in the volumes of Turbigo plant, which was not mothballed. Revenues 572 557 -15 -3% Ebitda 141 120 -21 -15%  Generation sector benefitted from the growth in volumes sold and b

  5. Slide 5: Market – Significant results and prospects

    MARKET – Significant results and prospects. m€ 9M '14 9M '15 Δ Δ%  Remarkable increase in EBITDA (+18%), supported by Revenues 1,654 1,646 -8 0% commercial activities and also by cost cutting, confirming the trend already reported in the last quarters. Ebitda 56 66 10 18% Electricity 16 13 -3 -17%

  6. Slide 6: Networks – Synergies extraction is one of the main drivers for the growth

    NETWORKS – Synergies extraction is one of the main drivers for the growth. ENERGY INFRASTRUCTURE m€ 9M '14 9M '15 Δ Δ% Revenues 241 261 20 8% • Electricity networks: The positive results of the sector is Ebitda 107 109 2 2% linked to synergies achievement and the equalization for Electricity 52 54 2

  7. Slide 7: Waste – Doubled revenues and approx. +50% EBITDA

    WASTE – Doubled revenues and approx. +50% EBITDA m€ 9M '14 9M '15 Δ Δ%  The significant increase in all the SBU KPIs is related both to internal items (the full operation of Parma WTE, Revenues 169 348 179 105% the strong increase in special waste collection, >40% in Ebitda 39 57 18 46% volumes) an

  8. Slide 8: From EBITDA to Net Profit

    From EBITDA to Net Profit. 9M '14 9M '15 Δ Δ%  Higher D&A related mainly EBITDA 484.3 497.6 13.3 2,7% to Generation&DH and D&A -179.7 -198.1 Waste sectors.  Higher provision due to Provisions -21.9 -46.7 the absence of the ~25m€ funds release reported in EBIT 282.7 252.8 -29.9 -10,6% 9M 2014. Fina

  9. Slide 9: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. 2,286 81 2,156 162 26 (116) (5) (13) (189) (76) NFP 31 .12 .14 Net Profit D&A and other NWC Variation Capex Cha nge in Dis posals Div idends Others NFP 30 .09 .15 ope rat ing consol. perim . change s  The positive trend reported in the first half of the year is maintained

  10. Slide 10: Interest rate and debt structure

    Interest rate and debt structure*. Gross debt interest rate  25% of gross debt at variable interest rate.  Average long-term debt duration of about 4.5 years.  Significant reduction in cost of debt (3.4% compared to 3.8% in FY 2014). Debt structure  Approximately one-third of Iren’s total debt i

  11. Slide 11: Annexes

    ren Annexes Pag. 11

  12. Slide 12: Market Scenario

    Market Scenario. 9M '14 9M '15 Δ% Brent USD/bbl 106.5 55.4 -48.0% €/USD 1.4 1,1 -17.8% Brent €/bbl 78.6 49.7 -36.8% Gas Demand (bcm) 44 47 +8.5% PSV €/000 scm 237 244 +3.0% Energy Demand (Twh) 233 237 1.9% PUN (€/Mwh) 49.8 52.1 +4.7% CO2 €/Ton 5.7 7.4 +29.5% Green Cert. Hydro (€/Mwh) 98.2 99.9 +1.7%

  13. Slide 13: Balance Sheet

    Balance Sheet. FY '14 9M '15 Net fixed assets 4,619 4,597 Net Working Capital 238 170 Funds -550 -547 Other assets and liabilities -28 -29 Net invested capital 4,279 4,191 Group Sharholders' equity 1,993 2,035 Net Financial Position 2,286 2,156 Total Funds 4,279 4,191 Pag. 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

Iren — 9M 2015 Earnings Presentation on 6ix