Iren S.p.a. · MIL:IRE

Iren — Q1 2018 Earnings Presentation

15 slides from Iren's earnings presentation, May 11, 2018

  1. Slide 1: 2018 – 1Q Results

    11th May 2018 2018 – 1Q Results

  2. Slide 2: 1Q 2018: slight increase in all the operating results

    1Q 2018: slight increase in all the operating results KPIs Ebitda Bridge m€ 1Q '17 1Q '18 Δ Δ% 3 269 265 4 5 Revenues 1,047 1,066 19 1.8% (3) (5) Ebitda 265 269 4 1.6% Ebit 174 177 3 1.7% Net profit 101 103 2 2.6% Tech. Capex 47 68 21 45.2% EBITDA Non-recurring Scenario and Organic growth Synergies

  3. Slide 3: Generation and DH – Positive results in spite of a worse commodity scenario

    GENERATION AND DH – Positive results in spite of a worse commodity scenario m€ 1Q '17 1Q '18 Δ Δ% The normalization of the commodity scenario in 1Q 2018, Revenues 341 349 8 2% compared to the exceptional positive conditions reported in 1Q 2017, led to lower margins which have been more than offset b

  4. Slide 4: Market – Slight reduction in EBITDA linked to last year's utilization of stored gas

    MARKET – Slight reduction in EBITDA linked to last year’s utilization of stored gas. m€ 1Q '17 1Q '18 Δ Δ%  The margins of the business unit were impacted by two opposite non-recurring phenomena: the absence of the Revenues 810 791 -19 -2% positive element reported in 1Q 2017 in gas sector (linked

  5. Slide 5: Networks – Synergies and structural growth driven by higher capex

    NETWORKS – Synergies and structural growth driven by higher capex m€ 1Q '17 1Q '18 Δ Δ% • Energy networks: Lower new connections to the Revenues 195 199 4 2% electricity networks were offset by synergies and higher revenues thanks to the growth in RAB. Ebitda 75 80 5 7% Electricity 18 17 -1 -5% • Wa

  6. Slide 6: Waste – Higher costs linked to wider scope of service

    WASTE – Higher costs linked to wider scope of service m€ 1Q '17 1Q '18 Δ Δ%  The slight reduction in profitability derives mainly from Revenues 135 138 3 2% higher start-up collection activities costs not yet included in tariffs and from worse electricity scenario. Ebitda 38 36 -2 -5%  Steady incr

  7. Slide 7: From EBITDA to Net Profit

    From EBITDA to Net Profit. 1Q '17 1Q '18 Δ Δ% EBITDA 265.0 269.2 4.2 1.6% • Higher D&A stemmed mainly from changes in scope of consolidation and higher fixed assets D&A -76.4 -82.5 offset by non-recurring lower provision linked to IFRS9 Provisions -14.2 -9.3 EBIT 174.4 177.3 2.9 +1.7% • Lower financ

  8. Slide 8: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. -57m€ 2,372 68 2,315 68 (7) (110) (76) NFP 31 .12 .17 Net Profit D&A, prov isions and NWC Variation Capex Dis posals and othe r NFP 31 .03 .18 other  Continuous debt reduction (-57m€) thanks to the robust operating cash-flow generation easily covering increasing capex.  N

  9. Slide 9: Interest rate and debt structure

    Interest rate and debt structure. Gross debt interest rate  >90% of gross debt at fixed interest rate. 8%  Average long-term debt duration of about 92% 5.6 years Fixed Variable  Constant reduction in cost of debt (2.9% vs. 3.1% at the end of 2017) Debt structure  IREN’s debt is formed of:  57%

  10. Slide 10: Focus on sustainability

    Focus on sustainability  In 4Q 2017 IREN was awarded by the “Carbon Disclosure Project - Climate”, for the second consecutive year, with a “A” score.  “A” score is the highest score attainable. Only 5 companies out of 103 in Italy achieved this result in “CPD climate” and IREN is the only Italian

  11. Slide 11: Closing remarks

    Closing remarks Iren delivered organic growth and synergies in line with the business plan objectives; These elements combined with some “non recurring positive items” made it possible to offset the effects of the worse energy scenario and the temporary unavailability of waste disposal plants; In li

  12. Slide 12: Annexes

    Annexes Pag. 12

  13. Slide 13: Scenario

    Scenario. 1Q '17 1Q '18 Δ% Gas Demand (bcm) 25.8 26.0 1% TTF €/000 scm 200 223 11% PSV €/000 scm 216 231 7% Energy Demand (Twh) 78.9 79.5 1% PUN (€/Mwh) 57.4 54.3 -5% CO2 €/Ton 5.4 10.3 90% Green Cert. Hydro (€/Mwh) 107.3 99.0 -8% Pag. 13

  14. Slide 14: Balance Sheet

    Balance Sheet. 1Q '18 FY '17 Net fixed assets 5,401 5,412 Net Working Capital 251 182 Funds -628 -618 Other assets and liabilities -242 -105 Net invested capital 4,782 4,871 Group Sharholders' equity 2,467 2,499 Net Financial Position 2,315 2,372 Total Funds 4,782 4,871 Pag. 14

  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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