Ascopiave S.p.a. · MIL:ASC
Ascopiave — Italian Stock Market Opportunities Conference 2014
112 slides from Ascopiave's conference presentation, Sep 18, 2014
Slide 1: Italian Stock Market Opportunities Conference
Italian Stock Market Opportunities Conference Milan, September 18th 2014 Page 1
Slide 2: Contents
Contents Business Overview ............................................................................................ Pag. 3 History ................................................................................................................ Pag. 17 Gas distribution ...........................
Slide 3: Contents: Business Overview
Contents Business Overview → Group business activities .................................................................................. Pag. 4 → Competitive environment: the gas chain in Italy ............................................... Pag. 5 → Market positioning .............................
Slide 4: Group business activities
Group business activities p Ascopiave Group operates mainly in the gas sector. p Main business activities: p gas distribution (regulated activity / concessions awarded by municipalities) p gas sale to end customers (non regulated activity / free market) p Other business activities: heat management,
Slide 5: Competitive environment: the gas chain in Italy
Competitive environment: the gas chain in Italy Transport Distribution Regulated activities Import / via national Storage via local Sales production pipelines pipelines Liberalized activities Natural gas production Import of natural gas via Import of liquefied (in Italy or abroad) international pipe
Slide 6: Market positioning
Market positioning MAIN ITALIAN GAS DOWN-STREAM OPERATORS The Group has created an industrial pole that is a national player in the gas sector and a leading regional player in Triveneto VOLUMES OF GAS DISTRIBUTED (a): VOLUMES OF GAS SOLD (a): Vol. of gas Vol. of gas sold in Ranking Operator Distribu
Slide 7: Ascopiave Group structure as of June 30th 2014
Ascopiave Group structure as of June, 30th 2014 100% p Ascopiave has been listed on the STAR division of the 89% 100% Italian Stock Exchange since 12 December 2006 51% 48,86% p Ascopiave operates through several companies: (1) some of 100% them are subsidiaries in which the Group is the great majori
Slide 8: Ascopiave Shareholders as of June 30th 2014
Ascopiave Shareholders as of June, 30th 2014 Ascopiave Shareholders Asco Holding S.p.A. directly controls the capital of Ascopiave S.p.A. in an amount equal to 61.562%. Asco Holding S.p.A. is entirely owned by public shareholders, 92 municipalities mainly located in the province of Treviso. Internal
Slide 9: Main financial data (1)
Main financial data (1) 2013 MAIN FINANCIAL DATA* INCOME Distribution Sales Group BALANCE SHEET 31/12/2013 STATEMENT SBU** SBU*** Revenues**** 854,334 94,100 839,569 Fixed assets 531.527 EBITDA 105,904 35,998 69,906 Net working capital 2.752 EBIT 76,787 18,957 57,830 TOTAL CAPITAL EMPLOYED 534.278 S
Slide 10: Main financial data (2)
Main financial data (2) 2013 MAIN FINANCIAL DATA RESTATED ACCORDING TO IFRS 11 * INCOME Distribution Sales BALANCE SHEET restated 31/12/2013 STATEMENT Group SBU** SBU*** restated Fixed assets 537.449 Revenues**** 667,837 87,145 644,726 Net working capital (10.960) EBITDA 86,188 33,338 52,850 TOTAL C
Slide 11: 2009-2013 EBITDA break-down by Strategic Business Unit
2009-2013 EBITDA break-down by Strategic Business Unit Distribution Sales (Million of Euro) INCOME STATEMENT Group % % SBU SBU Revenues 854,3 94,1 839,6 (Gas purchase costs) (520,1) 0,0 (522,2) (Other operating costs) (228,3) (58,1) (247,4) EBITDA 105,9 36,0 34,0% 69,9 66,0% Revenues 1.078,0 95,4 1.
Slide 12: Financial leverage comparison
Financial leverage comparison Financial leverage comparison LOCAL UTILITIES (**) FINANCIAL RATIOS (*) (A verage data) ASCOPIAVE VAR. Financial leverage 1,33 0,33 -1,00 D/D+E 56,6% 24,6% -31,9% E/D+E 43,4% 75,4% 31,9% D/EBITDA 3,42 1,24 -2,18 Ascopiave financial leverage (0.33) is lower than those of
Slide 13: Financial ratios
Financial ratios Financial ratios (Thousand of Euro) 2013 2012 Var Var % Net Financial Position (NFP) (131.600) (170.130) 38.530 -22,6% EBITDA 105.904 102.683 3.221 +3,1% Finance costs (FC) (3.874) (6.916) 3.042 -44,0% NFP / EBITDA 1,24 1,66 (0,41) -25,0% EBITDA / FC 27 15 12 +84,1% Shareholders equ
Slide 14: Financial debt and cost of debt
Financial debt and cost of debt (Thousand of Euro) 2013 2012 Var Var % Long term financial borrowings (>12 months) 64.849 29.420 35.429 +120,4% Current position of long term financial borrowings 10.480 6.990 3.490 +49,9% Short term financial borrowings (<12 months) 53.579 149.294 (95.715) -64,1% Tot
Slide 15: Return on investment and cost of debt
Return on investment and cost of debt (Thousand of Euro) 2013 2012 Var Var % Capital employed 534.278 558.948 (24.670) -4,4% EBIT 76.787 73.075 3.711 +5,1% ROI 14,37% 13,07% 1,30% +9,9% Average cost of debt 1,58% 2,01% -0,43% -21,4% 16,00% 14,00% 14,37% 13,07% 12,00% 10,00% 8,00% +12,79% +11,06% 6,0
Slide 16: EIB Loan
EIB Loan EIB Loan EIB lends EUR 70 million to Ascopiave for gas grid in north-east of Italy In June 2013 the European Investment Bank (EIB) and Ascopiave have signed a EUR 70 million loan in support of investments to improve and expand gas distribution networks in the Veneto and Lombardy regions. Th
Slide 17: Contents: History
Contents History → Use of IPO proceeds ........................................................................................ Pag. 18 → Equity story after IPO (2007-2014) ................................................................... Pag. 19 → Acquisition of Veritas Energia ………………………………………………
Slide 18: Use of IPO proceeds
Use of IPO proceeds Ascopiave has used the IPO proceeds to finance a series of investments pursuing the dimensional growth of the Group, both by internal lines (investments in gas distribution network and other capital expenditures) and by external lines (investments in firm / companies acquisitions
Slide 19: Equity story after IPO (2007-2014) (1)
Equity story after IPO (2007-2014) (1) Long-Term Gas Supply Increase of capital New Acquisitions: Agreement between SIN stake in Sinergie Edigas DG (100%) IT and Gazprom Italiane (SIN IT): (2009-2018) Edigas Due (100%) 27.601% (North-Western Italy) Company set up: Sinergie Italiane (SIN IT): 20.01%
Slide 20: Equity story after IPO (2007-2014) (2)
Equity story after IPO (2007-2014) (2) Coverage of SIN IT Ascopiave Group exits New Acquisitions: losses and shareholders gas trading and Unigas (48.86%) resolution for company wholesaling business Blue Meta (100%) voluntatary liquidation. (North-Western Italy) Current capital stake in Amgas Blu (80
Slide 21: Acquisition of Veritas Energia
Acquisition of Veritas Energia VERITAS ENERGIA VERITAS ENERGIA: company active in the natural gas and electricity sales business. After the operation: 100.00% Ascopiave Main strategic goals for Ascopiave: 4 Further streghtening of market position in North-Eastern Italy 4 Synergies expected mainly in
Slide 22: Contents: Gas distribution
Contents Gas distribution → Minimum territorial district public tenders deadlines .......................................... Pag. 23 → Ascopiave positioning in the gas distribution market ......................................... Pag. 24 → Regulation of the call of tenders ..........................
Slide 23: Minimum Territorial District public tenders deadlines
Minimum Territorial District public tenders deadlines p Gas distribution concessions must be awarded only via Minimum Territorial District public tenders, so public tenders can not be banished by a single municipality, as in the past. p 177 Minimum Territorial Districts (m.t.d.) nationalwide. The fo
Slide 24: Ascopiave positioning in the gas distribution market
Ascopiave positioning in the gas distribution market Ascopiave positioning in the Minimum Territorial Districts set by the Government MINIMUM Total minimum Ascopiave Group Ascopiave Group Public tender TERRITORIAL territorial district % gas users share gas users deadline DISTRICT gas users (%) Trevi
Slide 25: Regulation of the call of tenders (1)
Regulation of the call of tenders (1) Standards to evaluate economic and technical offers A– Economic Offer B – Safety and service quality C – Development and maintenance of the distribution network A - Economic offer (maximum score: 28) p Discount on gas distribution tariffs paid by the end custome
Slide 26: Regulation of the call of tenders (2)
Regulation of the call of tenders (2) B - Offer concerning the safety and the service quality (maximum score: 27) p network inspections in order to prevent gas leaks (percentage of gas network annually checked) p performance of the emergency service p performance of the gas odorization service p imp
Slide 27: Residual Industrial Value of the Distribution Network (1)
Residual Industrial Value of the Distribution Network (1) In the event that should not be awarded the next public tenders for the concession of the distribution of gas must be paid to Ascopiave, as the current owner of the networks, a compensation, calculated in accordance with the terms of the agre
Slide 28: Residual Industrial Value of the Distribution Network (2)
Residual Industrial Value of the Distribution Network (2) Law n. 9 / 2014 and law n. 116 / 2014 has recently modified some rules regarding the compesantion to be paid to the current owner of the networks: (a) the compensation must be calculated in accordance with the terms of the agreement implement
Slide 29: Public Tenders Deadlines
Public Tenders Deadlines Law n. 116 / 2014 has extended the dates for the publication of the calls for tenders. The maximum dates has been extended by 8 months for the Minimum Territorial Districts belonging to the first group, 6 months for the M.T.D. of the second, third and fourth group and 4 mont
Slide 30: Tariff regulation: VRT breakdown (1)
Tariff regulation: VRT breakdown (1) 2013 VRT* (“Vincolo dei Ricavi Ammesso”, i.e. 2013 Total Revenue Constraint) VRT = CO + AMM + CI x rd 2013 VRT (Thousand of Euros) 2013 CO 22.444 where: 2013 AMM 17.962 CO: represents the tariff quota covering 2013 CI x rd 28.684 management operating costs 2013 V
Slide 31: Tariff regulation: VRT breakdown (2)
Tariff regulation: VRT breakdown (2) 2014 VRT* (“Vincolo dei Ricavi Ammesso”, i.e. 2014 Total Revenue Constraint) VRT = CO + AMM + CI x rd 2014 VRT (Thousand of Euros) 2014 CO 22.084 where: 2014 AMM 17.929 CO: represents the tariff quota covering 2014 CI x rd 27.460 management operating costs 2014 V
Slide 32: New regulation 2014-2019 (1)
New regulation 2014 – 2019 (1) NEW REGULATION (Resolution AEEGSI n. 367/2014/R/GAS) for the ongoing municipal concessions p Length of the regulatory period: from four to six years p Real pre tax rate of return on the net capital invested (WACC): from ~ 7.70% to ~ 6.90% (2014- 2015) p WACC updating:
Slide 33: New regulation 2014-2019 (2)
New regulation 2014 – 2019 (2) NEW REGULATION (Resolution AEEGSI n. 367/2014/R/GAS) for the incoming minimum territorial district concessions CO level M.T. District with total end users < 300,000: • for the first 3 years = mean of CO current standard level recognized to the medium size companies and
Slide 34: New regulation 2014-2019 (3)
New regulation 2014 – 2019 (3) NEW REGULATION (Resolution AEEGSI n. 367/2014/R/GAS) for the incoming minimum territorial district concessions Redemption value after 1st period: is calculated as sum of (a) the value of the stock of capital acquired by the outgoing operator at the starting date of the
Slide 35: SWOT analysis – Gas Distribution SBU
SWOT analysis – Gas Distribution SBU Strengths Weakness Dimensional level that allow exploitation of interesting We expect that legal framework uncertainty and the time management economies of scale needed by municipalities to organize competitive tender procedure will delay tender start Contiguity
Slide 36: Contents: Gas sales
Contents Gas sales → Gas sales to end customers: market segmentation and selling prices ………….. Pag. 37 → Gas selling price to domestic end customers ..................................................... Pag. 38 → Gas consumption taxes and VAT ..........…………………………………………….. Pag. 41 → Gas purchasing co
Slide 37: Gas sales to end customers: market segmentation and selling prices
Gas sales to end customers: market segmentation and selling prices Volumes of gas sold to end customers Pricing Market segmentation Mandatory maximum price level set by Domestic customers ~ 60% the Authority of Energy, Gas and Water Small business Completely free prices; mainly price ~ 20% customers
Slide 38: Gas selling price to domestic end customers (1)
Gas selling price to domestic end customers (1) P = CMEM + CCR + QT + Cpr + GRAD + TD + QVD + GCT + VAT CMEM + CCR = wholesale cost of gas TD = Gas distribution tariff QT = Gas transportation cost via national network QVD = Gas retail sale cost Cpr + GRAD = mechanism for the gradual GCT = Gas consum
Slide 39: Gas selling price to domestic end customers (2)
Gas selling price to domestic end customers (2) Gas selling price to domestic end customers: from 1stQ 2010 to 3rdQ 2014 National average price of natural gas for a family with autonomous heating and annual gas consumption of 1,400 scm. 91,24 92,78 90,22 88,93 88,43 86,38 87,92 85,75 86,27 84,07 83,
Slide 40: Gas selling price to domestic end customers (3)
Gas selling price to domestic end customers (3) New components of gas selling price after Resolution AEEGSI n. 196/2013/R/gas UNTIL FROM COMPONENTS U.M. 30/09/2013 01/10/2013 WHOLESALE COST OF GAS €/GJ CCI CMEM CONNECTED COSTS TO WHOLESALE €/GJ not provided CCR ACTIVITY €/customer/year QVD (fixed) Q
Slide 41: Gas consumption taxes and VAT
Gas consumption taxes and VAT Gas consumption taxes and VAT TAXES DOMESTIC USAGE INDUSTRIAL USAGE 3 3 3 3 3 3 Annual consumption < 120 m 120-480 m 480-1.560 m > 1.560 m < 1,2M (m ) >1,2M (m ) 3 Gas consumption taxes (€cent/m ) 4,40 17,50 17,00 18,60 1,2498 0,7499 Additional regional tax 3 Veneto (€c
Slide 42: Gas purchasing costs / Gas trading business
Gas purchasing costs / Gas trading business Gas Purchasing Costs p Gas purchasing costs are negotiated on a free market p Incumbent shippers have strong market position Uses Sourcing Sales to end customers Annual contracts (thermal year (*) (**)) (excluding business ~ 80% Delivery: entry of local di
Slide 43: Gas selling price up-date
Gas selling price up-date (Resolution AEEGSI n. 196/2013/R/gas) NEW REGULATION (Resolution AEEGSI n. 196/2013/R/gas) Resolution AEEGSI n. 196/2013/R/gas provides new rules to set up gas selling price to be applied to customers belonging to the protected market (domestic customers) since October 1st,
Slide 44: SWOT analysis – Gas Sales SBU
SWOT analysis – Gas Sales SBU Strengths Weakness Large end customer base Limited diffusion and knowledge of the brand outside of High per-capita consumption the region served Front offices capillarity Efficient customer care service Differentiation of offered services (dual fuel) Independence by big
Slide 45: Contents: Sinergie Italiane
Contents Sinergie Italiane → Sinergie Italiane ................................................................................................. Pag. 46 Page 45
Slide 46: Sinergie Italiane (1)
Sinergie Italiane (1) 30.94% 7.18% 30.94% 30.94% Sinergie Italiane has been established in 2008 to create a cooperation among downstream companies of the Italian energy sector (*), with the characteristic of a strong fidelized customer base and high local rooting. The company is based in Milan. (*)
Slide 47: Sinergie Italiane (2)
Sinergie Italiane (2) p March 13th, 2012 Sinergie Italiane board of directors approved the draft statutory financial statements at September 30th 2011, reporting a loss of Euro 92.2 million and a negative equity of Euro 88.7 million FY 2011 Ascopiave Group financial statement reported a financial ch
Slide 48: Sinergie Italiane (3)
Sinergie Italiane (3) The operation involved in a payment of 27,8 million of Euro which has not increased the value of the stake, but that has been expensed using partially the provision for risks and charges already allocated as of December 31st, 2011. For the start of restructuring process providi
Slide 49: Contents: Strategy
Contents Strategy → Strategic guidelines and objectives .................................................................... Pag. 50 → Growth in the down-stream market .................................................................... Pag. 51 → Gas distribution sector .............................
Slide 50: Strategic guidelines and objectives
Strategic guidelines and objectives Strategic guidelines p taking advantage of opportunities arising from the liberalisation of the gas market p consolidating its presence as a utility provider in northern Italy, by rationalising and optimising its operating process and increasing its efficiency thr
Slide 51: Growth in the down-stream market
Growth in the down-stream market Growth in size through a significant expansion of its customer base p Participation in competitive bidding for the award of contracts to manage the gas distribution service p Development of the electricity market as a tool to retain current gas customer base (cross s
Slide 52: Gas distribution sector (1)
Gas distribution sector (1) Gas distribution sector: key figures p No. of operators: about 240 p Municipalities served: about 7,000 p Volumes of gas distributed: about 34 billion of standard cubic meters p No. of users served: over 22 million p Length of the gas distribution network: over 220.000 km
Slide 53: Gas distribution sector (2)
Gas distribution sector (2) Gas distribution sector is facing a new phase of restructuring after that experienced subsequently the issuing of Letta decree of the early 2000s. Through the adoption of ATEM (minimum territorial district) is expeted a significant reduction of the number of operators. Th
Slide 54: Ascopiave: financial needs for winning target gas distribution public tenders
Ascopiave: financial needs for winning target gas distribution public tenders Ascopiave: investments for winning new gas distribution concessions (period 2015-2018) resulting from: (+) (-) (+) Acquisition of new Disposals of gas Taxes gas distribution plants distribution plants in areas in which Asc
Slide 55: Gas sales sector (1)
Gas sales sector (1) Gas sales sector: key figures p No. of operators in the italian market: over 160 p First 10 operators (with volumes of gas sold higher than one billion of standard cubic meters) supplying over 73% of overall consumption to the gas final market (45,6 billion of standard cubic met
Slide 56: Gas sales sector (2)
Gas sales sector (2) p Since 2008 economic crisis continues to affect natural gas demand. Together with the structure and constraints of take or pay contracts it has contributed to create a long market p Decoupling between gas price and oil gas price is very significant p All these factors (decoupli
Slide 57: Ascopiave: strategic goals in the gas sales market
Ascopiave: strategic goals in the gas sales market Ascopiave: actions in the gas sales market Ascopiave intends to maintain / improve competitive positioning in the gas sales market : growth for external line to compensate the natural loss of gas sales customers reduction of cost to serve improvemen
Slide 58: Contents: Dividends
Contents Dividends → Dividend policy ................................................................................................. Pag. 59 → Dividend yield comparison ............................................................................... Pag. 60 Page 58
Slide 59: Dividend policy
Dividend policy Dividends payment sustainable with high return to shareholders Sustainability of the dividend policy: p stable cash flow p stable business profitability p well-balanced financial structure Dividend yield at the top of the listed italian utilities companies DIVIDENDS 2013 2012 2011 20
Slide 60: Dividend yield comparison
Dividend yield comparison Dividends yield comparison Dividend distributed by Ascopiave in 2014 is higher than that distributed by major listed comparable companies Dividend Yield 2013 (*) Ascopiave S.p.A. 6,7% Hera S.p.A. 5,5% Acea S.p.A. 5,0% Iren S.p.A. 4,6% A2A S.p.A. 3,9% Gas Plus S.p.A. 3,3% 0,
Slide 61: Annexes
ANNEXES Milan, September 18th 2014 Page 61
Slide 62: Contents (1)
Contents (1) ANNEXES FY 2013 financial results → FY 2013 income statement ........................................................................ Pag. 64 → Balance sheet ............................................................................................ Pag. 65 → Volumes of gas distributed
Slide 63: Contents (2)
Contents (2) ANNEXES FY 2013 financial results → Capex and lenght of gas distribution network ............................................ Pag. 80 → Net financial position and cash flow ........................................................... Pag. 81 2009-2013 financial comparison 1stH 2014 finan
Slide 64: FY 2013 income statement
FY 2013 income statement (Thousand of Euro) 2013 2012 Chg Chg % Revenues 854.334 1.078.038 (223.704) -20,8% (Cost of raw materials and consumables) (574.518) (780.822) 206.305 -26,4% (Cost of services) (133.442) (152.434) 18.992 -12,5% (Cost of personnel) (27.280) (25.394) (1.886) +7,4% (Other opera
Slide 65: Balance sheet
Balance sheet (Thousand of Euro) 31/12/2013 31/12/2012 Chg Chg % Tangible assets (*) 39.277 40.534 (1.257) -3,1% Non tangible assets (*) 447.898 450.457 (2.559) -0,6% Other fixed assets 44.351 29.817 14.535 +48,7% Fixed assets 531.527 520.808 10.718 +2,1% Operating current assets 275.864 363.436 (87
Slide 66: Volumes of gas distributed (1)
Volumes of gas distributed (1) Volumes of gas distributed (Million of standard cubic meters) ∆ = -44,6 ∆ = +4,3 1.200 -5,1% 1.200 +2,7% 1.050 1.050 832,8 877,3 900 900 750 750 600 600 450 450 300 300 163,1 158,8 150 150 0 0 2013 2012 2013 2012 Gas distributed Gas distributed Companies consolidated a
Slide 67: Volumes of gas distributed (2)
Volumes of gas distributed (2) Volumes of gas distributed: hystorical trend (Ascopiave S.p.A.) (Million of standard cubic meters) 782,9 1.000 Avg. 2002-2012 900 861 834 824 806 774 780 771 766 800 749 747 701 720 -8,0% 700 600 500 400 300 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2
Slide 68: Volumes of gas sold to end customers
Volumes of gas sold to end customers Volumes of gas sold to end customers (Million of standard cubic meters) ∆ = -179,7 ∆ = -74,2 -17,0% -13,9% 1.500 1.500 1.250 1.250 1.059,1 1.000 879,4 1.000 750 750 534,4 500 500 460,2 250 250 0 0 2013 2012 2013 2012 Gas sold to end customers Gas sold to end cust
Slide 69: Volumes of gas sold on trading and wholesaling activities
Volumes of gas sold on trading and wholesaling activities Volumes of gas sold on trading and wholesaling activities (Million of standard cubic meters) ∆ = -615,7 -100,0% 1.500 1.250 1.000 750 615,7 500 250 0 0 2013 2012 Gas sold on trading and wholesaling activities Companies consolidated at 100% Pa
Slide 70: Volumes of electricity sold
Volumes of electricity sold Volumes of electricity sold (GWh) ∆ = +15,8 ∆ = -792,2 (*) +9,2% -50,5% 2.000 2.000 1.568,5 1.500 1.500 1.000 1.000 776,3 500 500 186,4 170,6 0 0 2013 2012 2013 2012 Electricity sold Electricity sold Companies consolidated at 100% Companies consolidated at 49%-51% (*) Red
Slide 71: Revenues bridge
Revenues bridge Revenues bridge (Thousand of Euro) ∆ = -223.704 1.500.000 -20,8% 1.200.000 1.078.038 900.000 -108.887 117.487 854.334 -175.506 -56.797 600.000 300.000 0 2012 Revenues Revenues Revenues Other 2013 fro m gas fro m gas fro m revenues sales to end trading and electricity (*) custo mers w
Slide 72: EBITDA bridge
EBITDA bridge EBITDA bridge (Thousand of Euro) ∆ = +3.221 140.000 +3,1% 120.000 1.824 3.297 105.904 102.683 100.000 -1.835 -64 80.000 60.000 40.000 20.000 0 EBITDA 2012 Gross margin Gross margin Gas Other EBITDA 2013 on gas sales on electricity distribution changes sales tariff revenues Page 72
Slide 73: EBITDA breakdown
EBITDA breakdown (Thousand of Euro) 2013 2012 Var Var % EBITDA 105.904 102.683 3.221 +3,1% EBITDA - Sale 69.906 68.737 1.168 +1,7% EBITDA - Distribution 35.998 33.946 2.053 +6,0% EBIT 76.787 73.075 3.711 +5,1% EBIT - Sale 57.830 57.477 353 +0,6% EBIT - Distribution 18.957 15.598 3.359 +21,5% EBITDA
Slide 74: Gas distribution tariff revenues
Gas distribution tariff revenues (Thousand of Euro) (*) 2013 2012 Chg Chg % Tariffs applied to sales companies 64.001 63.708 293 +0,5% Equalization amount (+ / -) 6.166 6.523 (357) -5,5% Gas distribution tariff revenues 70.167 70.231 (64) -0,1% The decrease of gas distribution tariff revenues (- Eur
Slide 75: Gross margin on gas sales
Gross margin on gas sales (Thousand of Euro) (*) 2013 2012 Chg Chg % Revenues from gas sales to end customers 617.047 713.446 (96.400) -13,5% Revenues from gas trading and wholesaling - 175.506 (175.506) -100,0% Revenues from gas sales 617.047 888.953 (271.906) -30,6% (Gas purchase costs) (407.174)
Slide 76: Gross margin on electricity sales
Gross margin on electricity sales (Thousand of Euro) (*) 2013 2012 Chg Chg % Revenues from elecricity sales 98.692 155.852 (57.160) -36,7% (Electricity purchase costs) (60.141) (95.405) 35.264 -37,0% (Distribution costs) (34.220) (57.939) 23.719 -40,9% Gross margin on electricity sales 4.332 2.508 1
Slide 77: Other net operating costs
Other net operating costs (Thousand of Euro) (*) 2013 2012 Chg Chg % Other revenues 47.006 44.572 2.434 +5,5% Other costs of raw materials and services (81.442) (84.190) 2.748 -3,3% Cost of personnel (27.280) (25.394) (1.886) +7,4% Other net operating costs (61.716) (65.012) 3.297 -5,1% Decrease of
Slide 78: Number of employees
Number of employees No. of employees No. of employees Companies consolidated at 100% Companies consolidated at 49%-51% ∆ = -3 ∆ = -3 700 -0,7% 700 -1,7% 600 600 500 450 453 500 400 400 300 300 200 200 169 172 100 100 0 0 31/12/2013 31/12/2012 31/12/2013 31/12/2012 Page 78
Slide 79: Cost of personnel
Cost of personnel Cost of personnel (Thousand of Euro) ∆ = +1.866 35.000 +7,4% 30.000 1.857 27.280 25.394 0 29 Other changes: 25.000 phantom stock options: 20.000 Euro 0,7 mln long term incentive plan (2012-2013): Euro 0,4 15.000 mln Labor collective 10.000 agreement renewal: Euro 0,2 mln 5.000 othe
Slide 80: Capex and length of gas distribution network
Capex and length of gas distribution network Capex (*) and lenght of gas distribution network ∆ = -1.439 60.000 -6,2% 50.000 40.000 30.000 21.648 (**) 23.087 20.000 10.000 (Thousand of Euro) 0 2013 2012 ∆ = +85 (km) (*) Excluding network extension in new urbanized areas that according to IAS are con
Slide 81: Net financial position and cash flow
Net financial position and cash flow ∆ = +38.530 (Thousand of Euro) 60.000 -22,6% 20.000 -20.000 -60.000 +70.017 -100.000 +11.194 +561 -16.074 -140.000 -27.167 -131.600 -180.000 -170.130 -220.000 31/12/2012 Ca sh flo w Ca pe x Change in net Change in net Change in 31/12/2013 w orking capita l w orki
Slide 82: Contents
Contents ANNEXES FY 2013 financial results 2009-2013 financial comparison → 2009-2013 income statement .................................................................... Pag. 83 → Balance sheet ............................................................................................ Pag. 84 1st
Slide 83: 2009-2013 income statement
2009-2013 income statement (Thousand of Euro) 2013 2012 2011 2010 2009 cagr 09-13 Revenues 854.334 1.078.038 1.099.241 855.884 764.151 2,8% (Cost of raw materials and consumables) (574.518) (780.822) (844.268) (660.030) (617.384) -1,8% (Cost of services) (133.442) (152.434) (124.572) (87.528) (58.88
Slide 84: Balance sheet
Balance sheet (Thousand of Euro) 31/12/2013 31/12/2012 31/12/2011 31/12/2010 * 31/12/2009 * cagr 09-13 Tangible assets 39.277 40.534 61.983 43.814 329.970 -41,3% Non tangible assets 447.898 450.457 459.046 410.765 114.542 40,6% Other fixed assets 44.351 29.817 26.741 16.133 15.418 30,2% Fixed assets
Slide 85: Contents (1)
Contents (1) ANNEXES FY 2013 financial results 2009-2013 financial comparison 1stH 2014 financial results → Application of IFRS 11 international accounting standard ………………….. Pag. 87 → FY 2013 restated income statement …….................................................... Pag. 88 → Balance sheet at
Slide 86: Contents (2)
Contents (2) ANNEXES 1stH 2014 financial results → Gross margin on electricity sales ………………………………………..……. Pag. 104 → Other net operating costs ………………………………………………………. Pag. 105 → Number of employees ………………………………………………………….. Pag. 107 → Consolidated cost of personnel ………………………………………………... Pag. 108 → Cap
Slide 87: Application of IFRS 11 international accounting standard
Application of IFRS 11 international accounting standard In application of IFRS 11 international accounting standard, from January, 1st 2014 the jointly controlled companies are consolidated with net equity consolidation method. Until December, 31st 2013 they were consolidated with proportionate con
Slide 88: FY 2013 restated income statement
FY 2013 restated income statement (Thousand of Euro) Page 88
Slide 89: Balance sheet at December 31st 2013 restated
Balance sheet at December, 31st 2013 restated (Thousand of Euro) Page 89
Slide 90: 1stH 2013 restated income statement
1stH 2013 restated income statement (Thousand of Euro) Page 90
Slide 91: 1stH 2014 consolidated income statement
1stH 2014 consolidated income statement (Thousand of Euro) (*) (*) Result of the companies consolidated with net equity consolidation method (data are considered pro-quota): sale companies, Euro 1,3 mln (Euro 5,4 mln in 1stH 2013 restated); distribution companies, Euro 0,5 mln (Euro 0,5 mln in 1stH
Slide 92: Consolidated balance sheet at June 30th 2014
Consolidated balance sheet at June, 30th 2014 (Thousand of Euro) (*) (*) (**) (*) Applying IFRIC 12 involves categorising the infrastructures under concession from tangible to intangible assets; (**) Value of the associated companies consolidated with net equity consolidation method: sale companies,
Slide 93: Volumes of gas distributed
Volumes of gas distributed Volumes of gas distributed (Million of standard cubic meters) ∆ = -101,3 ∆ = -11,3 -20,3% -22,9% Companies consolidated Companies consolidated with full consolidation method with net equity consolidation method (*) (*) Data are considered pro-quota. Page 93
Slide 94: Volumes of gas sold
Volumes of gas sold Volumes of gas sold (Million of standard cubic meters) ∆ = -103,4 ∆ = -75,4 -18,8% -50,7% 549,1 445,6 148,6 73,2 Companies consolidated Companies consolidated with full consolidation method with net equity consolidation method (*) of which 15,8 mln of cm for enlargement of consol
Slide 95: Volumes of electricity sold
Volumes of electricity sold Volumes of electricity sold (GWh) ∆ = +81,9 ∆ = -142,5 (**) +90,3% -73,6% 193,6 172,7 90,8 51,0 Companies consolidated Companies consolidated with full consolidation method with net equity consolidation method (*) of which 40,3 GWh for enlargement of consolidation perimet
Slide 96: Revenues bridge (1)
Revenues bridge (1) Revenues bridge Companies consolidated with full consolidation method (Thousand of Euro) ∆ = -68.089 -16,8% Page 96
Slide 97: Revenues bridge (2)
Revenues bridge (2) Revenues bridge Companies consolidated with net equity consolidation method (*) (Thousand of Euro) ∆ = -58.451 -51,7% (*) Sinergie Italiane excluded. Page 97
Slide 98: EBITDA bridge (1)
EBITDA bridge (1) EBITDA bridge Companies consolidated with full consolidation method (Thousand of Euro) ∆ = -11.470 -20,2% Page 98
Slide 99: EBITDA bridge (2)
EBITDA bridge (2) EBITDA bridge Companies consolidated with net equity consolidation method (*) (Thousand of Euro) ∆ = -8.727 -58,0% (*) Sinergie Italiane excluded. Page 99
Slide 100: EBITDA breakdown (1)
EBITDA breakdown (1) EBITDA breakdown Companies consolidated with full consolidation method (Thousand of Euro) (Thousand of Euro) (*) (**) (*) (**) (*) Sale companies; (**) Distribution companies. Page 100
Slide 101: EBITDA breakdown (2)
EBITDA breakdown (2) EBITDA breakdown Companies consolidated with net equity consolidation method (*) (Thousand of Euro) (Thousand of Euro) (*) (**) (*) (**) (*) Sinergie Italiane excluded; (**) Sale companies; (***) Distribution companies. Page 101
Slide 102: Gas distribution tariff revenues
Gas distribution tariff revenues (Thousand of Euro) (*) The decrease of gas distribution tariff revenues of the companies consolidated with full consolidation method (- Euro 0,7 mln) is due to: 1) change of gas distribution tariffs applied to gas sales companies: - Euro 6,8 mln; 2) equalization amou
Slide 103: Gross margin on gas sales
Gross margin on gas sales (Thousand of Euro) (*) The decrease of gross margin on gas sales of the companies consolidated with full consolidation method is equal to - Euro 12,0 mln: - change on the same consolidation perimeter: - Euro 16,4 mln - change for full consolidation of Veritas Energia S.r.l.
Slide 104: Gross margin on electricity sales
Gross margin on electricity sales (Thousand of Euro) (*) The increase of gross margin on electricity sales of the companies consolidated with full consolidation method is equal to + Euro 2,9 mln: - change on the same consolidation perimeter: + Euro 0,5 mln - change for full consolidation on Veritas
Slide 105: Other net operating costs (1)
Other net operating costs (1) (Thousand of Euro) (*) (**) Increase of other net operating costs of the companies consolidated with full consolidation method: - Euro 1,7 mln of which: increase of gas distribution concession fees: - Euro 0,3 mln increase of cost of personnel: - Euro 1,1 mln increase o
Slide 106: Other net operating costs (2)
Other net operating costs (2) (Thousand of Euro) (*) (**) (*) Economic data before elisions; (**) Sinergie Italiane excluded. (**) Change on the same consolidation perimeter: + Euro 0,8 mln / Change for deconsolidation of Veritas Energia S.r.l.: + Euro 1,0 mln Page 106
Slide 107: Number of employees
Number of employees Number of employees ∆ = +27 ∆ = -17 +6,0% -20,8% 477 450 83 66 Companies consolidated Companies consolidated with full consolidation method with net equity consolidation method (*) of which 15 employees for enlargement of consolidation perimeter (**) Veritas Energia S.r.l.: from
Slide 108: Consolidated cost of personnel
Consolidated cost of personnel Consolidated cost of personnel (Thousand of Euro) ∆ = +1.058 +9,2% Other changes: phantom stock options: Euro 0,6 mln change in consolidation criterion of Veritas Energia: 0,9 mln other: Euro 0,4 mln 1stH 2014 cost of personnel of the companies consolidated with net eq
Slide 109: Capex and length of gas distribution network
Capex and length of gas distribution network Capex (*) and lenght of gas distribution network ∆ = -731 -7,7% (**) (Thousand of Euro) 1stH 2014 investments of the companies consolidated with net equity consolidation method (Sinergie Italiane excluded): Euro 1,0 mln (-19,6%). ∆ = +28 +0,3% (km) (*) Ex
Slide 110: Net Financial Position and cash flow (1)
Net Financial Position and cash flow (1) Net Financial Position and cash flow Companies consolidated with full consolidation method (Thousand of Euro) ∆ = +22.688 -18,3% Change in Enlargement of consolidation consolidation criteria: perimeter: Euro 5.801 Euro 5.573 thousand thousand Page 110
Slide 111: Net Financial Position and cash flow (2)
Net Financial Position and cash flow (2) Net Financial Position and cash flow Companies consolidated with net equity consolidation method (*) (Thousand of Euro) ∆ = -1.412 +18,1% (*) Sinergie Italiane excluded. Page 111
Slide 112: Net Financial Position and cash flow (3)
Net Financial Position and cash flow (3) (Thousand of Euro) (*) 1stH 2014 average cost of debt: 1,36% (vs FY 2013 rate: 1,86%) (*) Data refers to only companies consolidated with full consolidation method. Page 112
Ascopiave — Italian Stock Market Opportunities Conference 2014 on 6ix