Iren S.p.a. · MIL:IRE
Iren — H1 2017 Earnings Presentation
17 slides from Iren's earnings presentation, Aug 3, 2017
Slide 1: 2017 – 1H Results
3rd August 2017 2017 – 1H Results
Slide 2: 1H 2017: growth equally driven by regulated and unregulated activities
1H 2017: growth equally driven by regulated and unregulated activities. Income statement Ebitda Bridge m€ 1H '16* 1H '17 Δ Δ% 6 9 10 442 417 Revenues 1,555 1,814 259 16.6% Ebitda 417 442 25 6.0% Ebit 239 258 19 7.9% EBITDA 1H '16 Scenario and Synergies Consolid. EBITDA 1H '17 Net profit 121 145 24 1
Slide 3: Generation and DH – active exploitation of positive scenario conditions
GENERATION AND DH – active exploitation of positive scenario conditions. m€ 1H '16 1H '17 Δ Δ% Positive results in all the sub-sectors deriving from the active exploitation of the favorable scenario conditions. Revenues 403 555 152 38% Generation sector confirms the growth reported in the first
Slide 4: Market – electricity sector affected by an expected negative scenario
MARKET – electricity sector affected by an expected negative scenario. m€ 1H '16 1H '17 Δ Δ% The higher than expected growth in PUN (+38%) negatively affected the electricity procurement costs, confirming the trend Revenues 1,084 1,248 164 15% already reported in the first three months of the year.
Slide 5: Networks – synergies offsetting some minor negative elements
NETWORKS – synergies offsetting some minor negative elements. m€ 1H '16 1H '17 Δ Δ% • Energy networks: Achieved synergies, in line with Revenues 400 421 21 5% expectations, more than offset higher costs for “white certificates”. Ebitda 148 153 5 3% Electricity 35 35 0 0% Gas 36 38 2 6% • Water netwo
Slide 6: Waste – disposal plants at fuller capacity drove the growth
WASTE – disposal plants at fuller capacity drove the growth m€ 1H '16 1H '17 Δ Δ% Higher saturation of the WTE plants together and the Revenues 254 270 16 6% positive impact of the growth in PUN price, experienced in particular in the Q1 are the drivers of the growth reported Ebitda 63 71 8 13% in
Slide 7: From EBITDA to Net Profit
From EBITDA to Net Profit. 1H '16* 1H '17 Δ Δ% EBITDA 417.1 442.3 25.2 6.0% • Higher D&A linked mainly to ATENA and SAP D&A -146.1 -154.6 consolidation. Provisions -32.1 -29.9 • Lower financial charges thanks mainly EBIT 238.9 257.7 18.8 7.9% to lower cost of debt. Financial charges -47.0 -42.7 • Lo
Slide 8: Cash-flow and NFP Bridge
Cash-flow and NFP Bridge. -54m€ 2,457 89 2,403 (5) 103 25 (5) (158) 28 (132) NFP 31 .12 .16 Net Profit D&A, NWC Capex Consolidation Dis posals and Div idends FV Derivatives NFP 30 .06 .17 provisions Variation dividends paid and other received The robust operating cash-flow generated in the quarter
Slide 9: Interest rate and debt structure
Interest rate and debt structure. Gross debt interest rate 89% of gross debt at fixed interest rate. Average long-term debt duration of about 4.8 years. Slight reduction in cost of debt (3.3% vs. 3.5% in 1H 2016) Debt structure IREN’s debt is formed of: 48% bonds 32% EIB loans 20% othe
Slide 10: Closing remarks
Closing remarks • The macro-trends reported in the first quarter of the year underpinned also the second quarter, with a substantial stability in terms of growth drivers. • A significant increase in all the operating indicators, from EBITDA to Net Profit, reflects the Group’s ability in tackling a m
Slide 11: Annexes
ren Annexes Pag. 11
Slide 12: IREN Shareholding structure (relative to total share capital)
IREN Shareholding structure (relative to total share capital) 30 June 2017 Finanziaria Sviluppo Utilities; 33,30% Other Shareholders**; 42,58% Municipality of Reggio Emilia; 7,16% Finanziaria Città di Torino*; 6,31% Municipality of Piacenza; 1,55% Municipality of Other Municipalities; Parma; 3,23% 5
Slide 13: IREN Shareholding structure – Voting rights and Shareholders agreement
IREN Shareholding structure – Voting rights and Sharehold. agr. 30 June 2017 Voting rights Shareholders agreement • 628,375,103 are the shares belonging to the Shareholders’ agreement, corresponding IREN - Votes owned by Public Entities to 52.6% of IREN’s ordinary share capital. Shareholders # ordin
Slide 14: Preferred shares
Preferred shares. • IREN’s share capital included 94.500.000 non-listed preferred shares without voting rights, owned by Finanziaria Città di Torino (100% owned by Turin Municipality). • In November 2015 Finanziaria Città di Torino launched an exchangeable bond on 80,498,014 IREN’s preferred stocks
Slide 15: Market Scenario
Market Scenario. 1H '16 1H '17 Δ% Gas Demand (bcm) 36 39 10% TTF €/000 scm 139 184 32% PSV €/000 scm 159 203 28% Energy Demand (Twh) 151 152 1% PUN (€/Mwh) 37.0 51.2 38.0% CO2 €/Ton 5.7 5.0 -13% Green Cert. Hydro (€/Mwh) 100.1 107.3 7% Pag. 15
Slide 16: Balance Sheet
Balance Sheet. 1H '17 FY '16* Net fixed assets 5,226 5,233 Net Working Capital 199 171 Funds -550 -562 Other assets and liabilities -94 -88 Net invested capital 4,781 4,754 Group Sharholders' equity 2,378 2,297 Net Financial Position 2,403 2,457 Total Funds 4,781 4,754 *Restated ex IFRS 3 Pag. 16
Slide 17: 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