Iren S.p.a. · MIL:IRE

Iren — 9M 2014 Earnings Presentation

14 slides from Iren's earnings presentation, Nov 13, 2014

  1. Slide 1: 2014 – 9M Results

    13th of November 2014 2014 – 9M Results

  2. Slide 2: Key facts of the period

    Key facts of the period. Extremely mild winter season. Extraordinary operations (AES de-merger, PTO on Società Acque Potabili, further stake acquisition in TRM and Tecnoborgo). 1H 2014 Application of the New IFRS 11: OLT, Società Acque Potabili, AES Torino, Iren Rinnovabili consolidated using the eq

  3. Slide 3: Recovery in operating results compared to 1H 2014

    Recovery in operating results compared to 1H 2014. Income statement Ebitda Bridge m€ 9M '131 9M '141 Δ Δ% 483 12 23 484 29 Revenues 2,417 2,071 -345.2 -14.3% (38) (17) (8) Ebitda 483 484 1.5 0.3% Eb itda margin 20.0% 23.4% Ebit 274 283 8.2 3.0% Net profit 99 89 -10.6 -10.7%  Revenues down by 14.3%:

  4. Slide 4: Generation and DH – 3Q 2014 performance in line with 3Q 2013

    GENERATION AND DH – 3Q 2014 performance in line with 3Q 2013. m€ 9M '13 9M '14 Δ Δ%  Cogen/Thermoelectric production sector: a 20% drop Revenues 708 572 -136 -19% both in volumes (mainly climate effect) and electricity price partially offset by positive non-recurrent items and Ebitda 179 141 -38 -2

  5. Slide 5: Market – Stable results compared to 1H 2014

    MARKET – Stable results compared to 1H 2014. m€ 9M '13 9M '14 Δ Δ%  Gas Sales affected by the new reg. framework (CCI) and Revenues 2,204 1,654 -550 -25% by the extreme mild winter season (-15% volumes sold to end clients) Ebitda 73 56 -17 -23% Electricity -1 16 17 n.r.  Electricity sales: benefit

  6. Slide 6: Distribution – Efficiency and extraordinary items

    DISTRIBUTION – Efficiency and extraordinary items. ENERGY INFRASTRUCTURE m€ 9M '13 9M '14 Δ Δ% • Electricity networks: lower margin linked to the Revenues 238 241 3 1% absence of 2013 positive extraordinary items and fewer services to end clients already reported in the 1H 2014. Ebitda 115 107 -8 -7

  7. Slide 7: Waste – Steady growth in the sector

    WASTE – Steady growth in the sector. m€ 9M '13 9M '14 Δ Δ%  Higher revenues and EBITDA linked to an Revenues 158 169 11 7% improvement in all the sub-sectors (higher electricity and heat production volumes, rationalization in tariff for Ebitda 27 39 12 47% waste collection and disposal, strong incr

  8. Slide 8: From EBITDA to Net Profit

    From EBITDA to Net Profit. 9M '13 9M '14 Δ% EBITDA 482.8 484.3 0.3% D&A -152.6 -179.7 Higher D&A related mainly to Provisions -55.7 -21.9 the Tusciano and Turbigo plants offset by risk provisions release and lower provisions. EBIT 274.5 282.7 3.0% Financial charges -66.1 -76.7 The negative results i

  9. Slide 9: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. Including 59m€ Capex for the increase in IREN’s stake in TRM and Tecnoborgo WTEs 2,525 74 2 2,281 2,192 234 (333) 58 (31) (102) (146) NFP IFRS 11 NFP Net Profit D&A and NWC Capex Disposals Dividends Others NFP 31.12.2013 31.12.2013 ΔNet Variation and cash-in 30.09.2014 Rep.

  10. Slide 10: Interest rate and debt structure

    Interest rate and debt structure. Interest rate*  6% of net debt at variable interest rate. 21% 6%  Average long-term debt duration of about 5.1 years. 73% Fixed Variable Swap  Slight reduction in cost of debt (3.8% compared to 3.9 in 1H 2014 and FY 2013) Debt structure  Strong increase in perce

  11. Slide 11: Annexes

    ren Annexes Pag. 11 of 14

  12. Slide 12: Market Scenario

    Market Scenario. 9M '13 9M '14 Δ% Brent USD/bbl 108.5 106.5 -1.3% USD/€ 1.32 1.36 +2.9% Brent €/bbl 82.3 78.6 -4.5% Gas Demand (bcm) 49.5 43.6 -11.9% PSV €/000 scm 294 237 -19.5% Energy Demand (Twh) 239 232 -3.0% PUN (€/Mwh) 62.3 49.8 -20.0% 2 CO €/Ton 4.4 5.7 +30.1% Green Cert. Hydro (€/Mwh) 81.9 9

  13. Slide 13: Balance Sheet

    Balance Sheet*. FY '13 9M '14 Net fixed assets 4,526 4,537 Net Working Capital 151 210 Funds -474 -445 Other assets and liabilities -12 -25 Net invested capital 4,191 4,277 Group Sharholders' equity 1,999 1,996 Net Financial Position 2,192 2,281 Total Funds 4,191 4,277 *Restated. Pag. 13 of 14

  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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