Ascopiave S.p.a. · MIL:ASC
Ascopiave — Investor Presentation (April 2014)
29 slides from Ascopiave's investor presentation, Apr 8, 2014
Slide 1: Ascopiave Group
Gruppo Ascopiave Group Milan, April 8th 2014 Page 1
Slide 2: 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, c
Slide 3: 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 Distribuited Vol. of gas sold in Italy Rankin
Slide 4: Ascopiave: shareholders
Ascopiave: shareholders Asco Holding S.p.A. 61.562% Amber Capital Asm Rovigo Own shares Market UK S.p.A. 3.090% 4.419% 5.202% 25.727% In house processing on informations received by Ascopiave S.p.A. in accordance with the article 120 of Unified Finance Law as of February 18th 2014. As of December 31
Slide 5: Ascopiave Group structure as of March 31st 2014
Ascopiave Group structure as of March, 31st 2014 100% p Ascopiave has been listed on the STAR division of the Italian 89% 100% Stock Exchange since 12 December 2006 51% 48,86% p Ascopiave operates through several companies: (1) some 100% of them are subsidiaries in which the Group is the great major
Slide 6: 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 7: 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 8: Volumes of gas distributed
Volumes of gas distributed 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 at 10
Slide 9: 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 10: Number of gas sales customers
Number of gas sales customers Gas sales customers Gas sales customers Companies consolidated at 100% Companies consolidated at 49%-51% ∆ = -10.979 ∆ = -9.598 -2,0% -3,3% 800.000 800.000 600.000 548.370 559.349 600.000 400.000 400.000 282.430 292.028 200.000 200.000 0 0 31/12/2013 31/12/2012 31/12/20
Slide 11: EBITDA bridge
EBITDA bridge EBITDA bridge (Thousand of Euro) ∆ = +3.221 140.000 +3,1% 120.000 3.297 105.904 102.683 1.824 100.000 -1.835 -64 80.000 60.000 40.000 20.000 0 EBITDA 2012 Gros s margin Gross margin Gas Other EBITDA 2013 on gas s ales on electricity distribution changes sales tariff revenues Page 11
Slide 12: 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 13: 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 13
Slide 14: Cost of personnel
Cost of personnel Cost of personnel (Thousand of Euro) ∆ = +1.866 35.000 +7,4% Other changes: 30.000 1.857 27.280 25.394 0 29 phantom stock 25.000 options: Euro 0,7 mln 20.000 long term incentive plan (2012-2013): 15.000 Euro 0,4 mln Labor collective 10.000 agreement renewal: Euro 0,2 mln 5.000 othe
Slide 15: Capex
Capex Capex (*) (Thousand of Euro) ∆ = -1.439 -6,2% gas distribuition system: 60.000 Euro 13,2 mln 50.000 gas meters: Euro 1,8 mln 40.000 gas distribution concession: Euro 4,4 mln 30.000 21.648 (**) 23.087 other: Euro 2,2 mln 20.000 10.000 0 2013 2012 (*) Excluding network extension in new urbanized
Slide 16: 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 Cap e x Cha nge in net Cha ng e in ne t Cha ng e in 31/12/2013 w o rking ca p ita
Slide 17: 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 18: 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 2012 2011 2010 20
Slide 19: 2013 Dividend proposal
2013 Dividend proposal 2013 Dividends proposal Dividend proposed: 0,120 Euro per share (Euro 28,1 mln) Detachment date: May, 12th 2014 Payment date: May, 15th 2014 DIVIDENDS PROPOSAL 2013 Dividends paid (Thousand of Euro) 28.129 Group Net Income (Thousand of Euro) 38.678 Payout ratio 73% Dividends p
Slide 20: 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 21: 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 Increase number retain current gas custom
Slide 22: 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 23: 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 24: Ascopiave positioning in the gas distribution market (1)
Ascopiave positioning in the gas distribution market (1) Ascopiave positioning in the minimum territorial districts set by the Government MINIMUM Total minimum Ascopiave Group Ascopiave Group Public tender Volumes of gas TERRITORIAL territorial district % gas users share gas users deadline distribut
Slide 25: Ascopiave positioning in the gas distribution market (2)
Ascopiave positioning in the gas distribution market (2) 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 Ascopiave doesn’t intend
Slide 26: Gas sale sector (1)
Gas sale sector (1) Gas sale 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 meter
Slide 27: Gas sale sector (2)
Gas sale 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 (decouplin
Slide 28: Ascopiave: gas sales to end customers (1)
Ascopiave: gas sales to end customers (1) Volumes of gas sold to end customers Pricing Market segmentation Mandatory maximum price level set by Domestic customers ~ 60% the Authority of Energy and Gas Small business Completely free prices; mainly price ~ 20% customers discounts on standard level pri
Slide 29: Ascopiave: gas sales to end customers (2)
Ascopiave: gas sales to end customers (2) Ascopiave: actions in the gas sale market Ascopiave intends to maintain / improve competitive positioning in the gas sale market : growth for external line to compensate the natural loss of gas sales customers reduction of cost to serve improvement of gas su