Naturgy Energy Group, S.a. · BME:NTGY

Naturgy Energy — 9M18 Earnings Presentation

19 slides from Naturgy Energy's earnings presentation, Nov 5, 2018

  1. Slide 1: 9M18 results

    9M18 results November 5, 2018

  2. Slide 2: Agenda

    Agenda 1. Key highlights 2. 9M18 consolidated results 3. 9M18 results by business unit 4. Conclusions Appendix 2

  3. Slide 3: Key highlights

    01 Key highlights 01

  4. Slide 4: Key highlights

    Key highlights  Robust recurrent EBITDA evolution despite adverse FX 9M18 9M17 Change (€m) 9M18 9M17 recurrent recurrent (%)  10% growth  Activity +€479m and FX €-182m EBITDA 2,976 2,993 3,248 2,951 +10%  Recurrent net income up 38% supported by activity and lower financial expenses Net income (

  5. Slide 5: Non-recurrent items & FX

    Non-recurrent items & FX EBITDA Net income  Non-recurrent items  Non-recurrent items €m 9M18 9M17 €m 9M18 9M17 Gas transport & procurement (47) 20 Gas transport & procurement (35) 15 Chile extraordinary expenses (33) - Chile extraordinary expenses (21) - Restructuring costs (78) (18) Restructuring

  6. Slide 6: Progress on value creation strategy

    Progress on value creation strategy Key highlights  Board simplification, made extensive to subsidiaries Simplicity &  Asset valuation review 1 accountability  New reporting perimeter with higher accountability and autonomy  Scale down of corporate functions and cost reallocation into BUs (costs

  7. Slide 7: 9M18 consolidated results

    02 9M18 consolidated results 01

  8. Slide 8: EBITDA evolution (€m)

    EBITDA evolution (€m) +10% 108 339 30 2 3.248 (17) (17) (132) (16) (116) 2.993 2.976 2.951 (156) (42) Activity FX impact EBITDA 9M17 Non-recurrent Recurrent Gas & Power Infra. EMEA Infra. LatAm Infra. LatAm Recurrent Argentina Other non- EBITDA 9M18 items EBITDA 9M17 South North EBITDA 9M18 pending

  9. Slide 9: Net income evolution (€m)

    Net income evolution (€m) +38% 205 37 877 793 635 (158) (3,917) (3,040) Net Non- Recurrent Activity Financial Recurrent Write-down Net income recurrent net result, net and others income 9M17 items income associates income 9M18 9M17 & other 9M18 Strong recurrent net income driven by activity improvem

  10. Slide 10: Cash flow and net debt evolution

    Cash flow and net debt evolution Cash flow (€m) Net debt (€m) Change vs. 9M18 9M17 (%) Recurrent EBITDA 3,248 +10% Avg. cost of 3.4% 3.1% debt Non-recurrent items (272) - EBITDA 2,976 -1% Taxes (189) - 1,095 Net interest cost (474) - (132) (72) Other non cash items (81) - (2,470) Funds from operatio

  11. Slide 11: 9M18 results by business unit

    03 9M18 results by business unit 01

  12. Slide 12: Gas & Power

    Gas & Power EBITDA evolution (€m) Highlights  Gas, Power & services sales: higher gas supply prices as result of market fundamentals and new conditions from Algerian procurement contract, offset by margin pressure in 170 33 21 1,003 power supply. 935 101 (68)  International LNG: higher margins and

  13. Slide 13: Infrastructure EMEA

    Infrastructure EMEA EBITDA evolution (€m) Highlights  Spain gas networks: operating growth offset by lower meter rental revenues and, to a lesser extent, lower LPG 1,330 14 1,344 14 1 1,357 1,333 margins. (2) (24)  Spain electricity networks: growth explained by the accrual of investments brought

  14. Slide 14: Infrastructure South LatAm

    Infrastructure South LatAm EBITDA evolution (€m) Highlights  Chile electricity: activity growth offset by ordinary tariff adjustments and FX impact. 680 680 18 656 0 (11) (4)  Chile gas: growth in connection points and higher margins (27) in the residential and commercial segments, countered by 50

  15. Slide 15: Infrastructure North LatAm

    Infrastructure North LatAm EBITDA evolution (€m) Highlights  Mexico gas: higher energy margin offset by FX impact and higher opex from commercial 207 207 repositioning and other temporary factors 0 193 1 194 (12) (2)  Panama electricity: higher connection points negatively affected by milder weath

  16. Slide 16: Conclusions

    04 Conclusions 01

  17. Slide 17: Summary 9M18 results

    Summary 9M18 results  Robust recurrent activity evolution despite adverse FX  Achievement of key milestones since launch of strategic plan 2018-2022  Scale down of corporate functions and cost reallocation into BUs  Launch of new efficiency plan and new opex / capex committees and progress on ca

  18. Slide 18: 9M18 results Q&A

    Naturgy by 9M18 results Q&A

  19. Slide 19: Property notice and capital markets contact

    This presentation is property of Naturgy Energy Group, S.A. Both its content and design are for the exclusive use of its personnel. ©Copyright Naturgy Energy Group, S.A CAPITAL MARKETS tel. 34 912 107 815 e-mail: capitalmarkets@naturgy.com website: www.naturgy.com

Naturgy Energy Group — 9M18 Earnings Presentation on 6ix