Iren S.p.a. · MIL:IRE

Iren — Q1 2016 Earnings Presentation

14 slides from Iren's earnings presentation, May 12, 2016

  1. Slide 1: 2016 – 1Q Results

    12th May 2016 2016 – 1Q Results

  2. Slide 2: 2016 1Q – Results on track with BP expectations

    2016 1Q – Results on track with BP expectations ORGANIC Organic growth of approximately 12m€, confirming the positive trend reported in the last quarters GROWTH SYNERGIES 7m€ of synergies already achieved thanks mainly to the effectiveness of the streamlining process Coverage of the entire value cha

  3. Slide 3: 1Q 2016: Growing profitability in spite of a warm winter

    1Q 2016: Growing profitability in spite of a warm winter. Income statement Ebitda Bridge m€ 1Q '15 1Q '16 Δ Δ% 7 13 239 211 12 Revenues 919 886 -33 -3.6% (4) Ebitda 211 239 28 13.1% Ebit 133 154 21 15.8% Net profit 59 73 14 24.5% EBITDA 1Q Wacc Organic Synergies Consolid. EBITDA 1Q 2015 reduction Gr

  4. Slide 4: GENERATION AND DH – Significant increase in margins

    GENERATION AND DH – Significant increase in margins m€ 1Q '15 1Q '16 Δ Δ%  Strong increase in EBITDA in spite of a reduction in revenues thanks mainly to a quick drop in gas prices Revenues 267 236 -31 -11% compared to the PUN decreasing trend. Ebitda 70 80 10 15%  Generation sector gained from hi

  5. Slide 5: MARKET – Procurement/sale optimization offset climate effect

    MARKET – Procurement/sale optimization offset climate effect.  The significant growth in margins is linked to a sound m€ 1Q '15 1Q '16 Δ Δ% procurement strategy both in gas and electricity together with effective hedging and pricing actions. In addition, Revenues 812 747 -65 -8% positive effects co

  6. Slide 6: NETWORKS – Negative impact from wacc reduction offset by synergies

    NETWORKS – Negative impact from wacc reduction offset by synergies m€ 1Q '15 1Q '16 Δ Δ% • Electricity networks: The decrease in EBITDA is mainly Revenues 197 192 -5 -3% linked to 1Q 2015 extraordinary positive equalization, absent in the 1Q 2016. Ebitda 73 72 -1 -1% Electricity 20 16 -4 -18% Gas 17

  7. Slide 7: WASTE – TRM consolidation drove the growth

    WASTE – TRM consolidation drove the growth m€ 1Q '15 1Q '16 Δ Δ%  The strong increase in the BU’s margins is linked Revenues 116 127 11 10% principally to the contribution of TRM (>10m€) was partially offset by a decrease of the contribution from Ebitda 20 31 11 56% electricity sold (lower prices).

  8. Slide 8: From EBITDA to Net Profit

    From EBITDA to Net Profit. 1Q '15 1Q '16 Δ Δ% EBITDA 211.4 239.1 27.7 13.1% D&A -65.7 -70.6  Higher D&A linked mainly to TRM Provisions -12.5 -14.3 consolidation EBIT 133.2 154.3 21.1 15.8% Financial charges for loans -21.1 -23.6 Other financial charges -7.3 -6.7 • Higher FC due to TRM consolidatio

  9. Slide 9: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. 431 2,551 2,169 41 12 2,120 53 (78) (6) (73) NFP 31 .12 .15 Net Profit D&A and other NWC Variation Capex Dis posals and Others Ordinary NFP ∆ Cons. NFP ope rat ing dividends 31.03.16 Perimeter 31.03.201 6 change s  NFP increase is completely ascribable to the change in the

  10. Slide 10: Interest rate and debt structure

    Interest rate and debt structure. Gross debt interest rate  18% of gross debt at variable interest rate.  Average long-term debt duration of about 5.1 years. Debt structure  Expected slight increase in cost of debt (3.6%) due to TRM consolidation. Pag. 10

  11. Slide 11: Annexes

    ren Annexes Pag. 11

  12. Slide 12: Market Scenario

    Market Scenario. 1Q '15 1Q '16 Δ% Brent USD/bbl 54.0 33.9 -37% €/USD 1.1 1.1 -2% Brent €/bbl 47.9 30.8 -36% Gas Demand (bcm) 23.6 23.6 = PSV €/000 scm 257 215 -34% Energy Demand (Twh) 78.1 77.6 -1.0% PUN (€/Mwh) 51.9 39.6 -24% CO2 €/Ton 7.0 5.7 -19% Green Cert. Hydro (€/Mwh) 97.9 100.1 +2% • A sharp

  13. Slide 13: Balance Sheet

    Balance Sheet. 1Q '16 FY '15 Net fixed assets 5,063 4,648 Net Working Capital 214 154 Funds -538 -526 Other assets and liabilities -65 -46 Net invested capital 4,674 4,231 Group Sharholders' equity 2,123 2,062 Net Financial Position 2,551 2,169 Total Funds 4,674 4,231 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

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