Iren S.p.a. · MIL:IRE

Iren — 9M 2016 Earnings Presentation

15 slides from Iren's earnings presentation, Nov 10, 2016

  1. Slide 1: 2016 – 9M Results

    10th November 2016 2016 – 9M Results

  2. Slide 2: 2016 9M – Achievements

    2016 9M – Achievements ORGANIC Organic growth of approximately 24m€ driven mainly by the energy sector (Generation and GROWTH Market). 23m€ of synergies already achieved, 75% of the expected synergies for this year in the new business SYNERGIES plan. More than 40m€ from consolidation. The process is

  3. Slide 3: 9M 2016: double digit growth from EBITDA to Net profit

    9M 2016: double digit growth from EBITDA to Net profit. Income statement Ebitda Bridge m€ 9M '15 9M '16 Δ Δ% 43 559 498 24 23 Revenues 2,219 2,228 9 0.4% (19) (10) Ebitda 498 559 61 12.3% Ebit 253 285 32 12.9% Net profit 99 125 26 26.3% EBITDA 9M One-off Wacc Organic Synergies Consolid. EBITDA 9M '1

  4. Slide 4: Generation and DH – Positive trend confirmed

    GENERATION AND DH – Positive trend confirmed. m€ 9M '15 9M '16 Δ Δ%  The excellent performance in thermo/cogen sector, already reported in 1H 2016, more than offset the volume/price drop in Revenues 557 547 -10 -2% hydro sector due to commodity scenario and climate conditions. Ebitda 120 140 20 16%

  5. Slide 5: Market – Improved commercial approach and hedging operations drive the growth

    MARKET – Improved commercial approach and hedging operations drive the growth.  The steady increase in profitability and EBITDA compared to m€ 9M '15 9M '16 Δ Δ% the same period in 2015 is due to the ability of the Group in exploiting positive scenario conditions, together with the Revenues 1.646 1

  6. Slide 6: Networks – Synergies offsetting wacc reduction

    NETWORKS – Synergies offsetting wacc reduction. m€ 9M '15 9M '16 Δ Δ% • Energy networks: the absence of a positive equalization Revenues 632 591 -41 -6% reported in 1H 2015 and wacc reduction was substantially offset by synergies. Higher POD’s both in electricity and Ebitda 234 220 -14 -6% gas thank

  7. Slide 7: Waste – Positive results thanks both to external and internal growth

    WASTE – Positive results thanks both to external and internal growth. m€ 9M '15 9M '16 Δ Δ%  External Growth: thanks to the territorial consolidation Revenues 348 382 34 10% process (~35m€) through the acquisition of a controlling stake in TRM. Ebitda 57 95 38 68%  Internal Growth: Synergies explo

  8. Slide 8: From EBITDA to Net Profit

    From EBITDA to Net Profit. 9M '15 9M '16 Δ Δ% EBITDA 497,6 558,9 61,3 12,3% • Higher D&A linked mainly to TRM D&A -198,1 -215,9 consolidation. • Higher provisions mainly linked to non-recurring Provisions -46,7 -57,6 provision on industrial plants for 7m€. EBIT 252,8 285,4 32,6 12.9% • Higher Financ

  9. Slide 9: Cash-flow and NFP Bridge

    Cash-flow and NFP Bridge. 431 2,528 2,169 87 4 2.097 160 (140) 20 (15) (189) NFP 31 .12 .15 Net Profit D&A and NWC Capex Dis posals Div idends Others Ordinary ∆ Cons. NFP other Variation and paid NFP 30 .06 .16 Perimeter 30.09.201 6 ope rat ing dividends change s received  Third consecutive quarter

  10. Slide 10: Interest rate and debt structure

    Interest rate and debt structure*. Gross debt interest rate  20% of gross debt at variable interest rate.  Average long-term debt duration of about 4.7 years (5.0 years expected taking into account the recent bond emission and tender offer).  Further slight reduction in cost of debt (3.4%) compar

  11. Slide 11: Further steps

    Further steps. • Significant optimization in the integrated energy value chain coupled with an active management of the generation assets and a strong focus on Clients which led to approximately +85k Clients in 9M ORGANIC GROWTH 2016: 20% of the BP expected growth by 2021 already achieved. AND SYNER

  12. Slide 12: Annexes

    ren Annexes Pag. 12

  13. Slide 13: Market Scenario

    Market Scenario. 9M '15 9M '16 Δ% Gas Demand (bcm) 47,2 48 2% TTF €/000 scm 219 141 -36% PSV €/000 scm 244 160 -34% Energy Demand (Twh) 237,4 230,5 -3% PUN (€/Mwh) 52,1 38,3 -26% CO2 €/Ton 7,4 5,3 -28% Green Cert. Hydro (€/Mwh) 99,9 100,1 = Pag. 13

  14. Slide 14: Balance Sheet

    Balance Sheet. 9M '16 FY '15 Net fixed assets 5,102 4,648 Net Working Capital 174 154 Funds -523 -526 Other assets and liabilities -49 -46 Net invested capital 4,704 4,231 Group Sharholders' equity 2,176 2,062 Net Financial Position 2,528 2,169 Total Funds 4,704 4,231 Pag. 14

  15. Slide 15: 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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