1h 2017 consolidated results - amazon s3€¦ · 1h consolidated results €m 1h 2017 ebitda 649...
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1H 2017 Consolidated Results
Milan, July 31st,2017
2
Highlights of the period
3
+ -Hydro volumes
CCGT performance, MGP and MSD
LGH: standalone growth and FY consolidation
Non recurring YoY comparisonOrganic growth in DH, Networks and Waste
EPCG put option exercise effects
1H 2017 HIGHLIGHTS
1st Plastic Treatment Plantin construction
ASVT and Patavina Techacquisition
MoU with “Utilitiesof Lombardy”
extended to September
Project Mistral on operating excellence Kicked off
With impact on 2017 1H economics
2nd Plastic Treatment Plantconstruction authorisation granted
4
KEY FINANCIAL INDICATORS
1H 2016
614
1H 2017
649
1H 2016
2,323
1H 2017
2,918
FY 2016
3,136
1H 2017
3,047
1H 2016
254
1H 2017
157
1H 2016
212
1H 2017
252
REVENUES EBITDA
GROUP NET INCOME
NET FINANCIAL POSITION
€M
+26%
-38%
+6%
GROUP ORDINARY NET INCOME*
+19% -89€M
* Excluding extraordinary items
1H 2017 HIGHLIGHTS
5
Analysis of results
6
2016
614
-80
2016Ordinary
53429 6
2234 0 2
-23
604
45
2017
649
2016Non
RecurringItems/
redundancyschemes
Gener&
Trading
EnergyRetail
Waste Networks&
DistrictHeating
SmartCity
Corporate EPCG 2017Ordinary
2017Non
RecurringItems/
redundancyschemes
€M+35
+70
1H CONSOLIDATED RESULTSGROUP EBITDA
7
2016
170
2016Non
RecurringItems
-14
2016Ordinary
156
-17
27 4 2 3
-9
13
LGH
4
2017Ordinary
185 1
2017
186
Environ.Market
Plants'Hedging
andDispatching
TradingPortfolio
Other Fixedcosts
SFMEBITDA
GasMargin
2017Non
RecurringItems
+16
+29
1H CONSOLIDATED RESULTSGENERATION & TRADING EBITDA
€M
• CCGT performance more than offsetting low hydro production• Excellent results on Gas optimization• Lower environmental markets margin
2016
73
-7
2016
Ordinary
66
Power
Market
-3
Gas
Market
2
Fixed
Costs
-2
Other
0
LGH
9
2017
Ordinary
725
2017
77
2016
NonRecurring
Items
2017
NonRecurring
Items
+4
+6
• Free market customer base more than 100K• Reduction in Unitary Margins mainly due to higher
unbalancing costs (price effect)
1H CONSOLIDATED RESULTSENERGY RETAIL EBITDA
€M
9
2016
36
80
119
2016Non
RecurringItems
-8
2016Ordinary
36
72
111
Collection
-3
UrbanWaste
TreatmentPlants
5
OtherTreatment
Plants
3
InternationalProjects
0
LGH
17
2017Ordinary
17
77
33
1334
2017
18
80
33
137
21
21
1
5
2017Non
RecurringItems
1
5
+18
Other Treatment Plants
Collection
Urban Waste Treatment Plants
+22
• Positive treatment plants margins thanks to higherprices and quantities
1H CONSOLIDATED RESULTSWASTE EBITDA
International Projects
€M
Collection +2.9€M
Treatment +14.7€M
10
2016
53
60
66
42
6
227
2016Ordinary
52
60
14
44
6
176
ElectricityNetworks
2
GasNetworks
4
WaterCycle
3
DistrictHeating
10
PublicLighting
1
LGH
14
2017Ordinary
17
56
62
14
54
7
210
2017
16
58
64
15
85
7
245
2016Non
RecurringItems
51
2017Non
RecurringItems
35
+18
+34
Gas NetworksElectricity NetworksWater Cycle Public Lighting Heating
• DH benefitting from higher gas prices, commercial developmentand temperature effect
• Positive white certificates margin
1H CONSOLIDATED RESULTSNETWORKS AND DISTRICT HEATING EBITDA
€M
LGH (Networks & Heating)
11
2016
13
22
35
Generation and Retail
-23
Distribution
0
2017
13
-1
12
-23
Energy
DistributionLow hydro production (-55%): higher import (at
very high prices)
1H CONSOLIDATED RESULTSEPCG EBITDA
€M
12
FROM EBITDA TO GROUP NET INCOME
1H CONSOLIDATED RESULTS
€M
1H 2017
EBITDA
649
D&A
-209
Risk
Provisions
-11
Non rec.
transact.
1 4
Net
FinancialExpenses
-61
-95
EBT
278
Taxes
-119
Net result
fromdiscontinuedoperations
1
Minorities
-3
1H 2017
NetIncome
157
Investments
carriedat equity
EPCG
write-downand
put option
discount
1H 2016 614 (198) 373 - (13) 2544 (63)(36) (106)52
(1) -95€M, of which:• -60€M D&A (EPCG write-down)• -35€M Net Financial Expenses
-
(1)
13
BREAKDOWN BY ACTIVITY BREAKDOWN BY BUSINESS
+41 +41
CAPEX
1H CONSOLIDATED RESULTS
€M
2016
8
28
78
1
10
130
2017
11
42
98
9
4
4171
2
3
3 Generation &Trading
Energy Retail
Waste
Networks and DistrictHeating
Corporate
A2A Smart City
EPCG
2016
61
58
11
130
2017
67
78
13
13
171
Maintenance
Development
Mandatory
M&A
14
NET FREE CASH FLOW
1H CONSOLIDATED RESULTS
€M
1H 2017
EBITDA
649
Change
in NetWorkingCapital
-33
Change in
otherassets/
liabilities
-139
Use of
Funds
-10
Tax Paid
-1
Net
FinancialExpenses
-53
FFO
(1)
413
Capex
-171
Dividends
-153
Free
CashFlow
89
Share
Buyback
0 89
Net FreeCash
Flow
(1) Funds from operations after working capital change
614 (71) 358 (130) (37) 651H 2016 (51) (54)(7)(73) (126) 102
15
Closing remarks
16
-30
EPCG Expected 2H EBITDA
Delta EBITDA
-1
Fair Value Adj. of theinvestment in EPCG to the
Put Option NPV
-95
A2A Shareof EPCG
2H expected Net Income
Delta Group Net Income
EPCG Positive NFP as of 30/06/17
-206
Delta Net Financial Position
EFFECT OF THE DECONSOLIDATION OF EPCG ON FY 2017 FORECAST
17
H1 CONSOLIDATED RESULTSEBITDA GUIDANCE
CONF. CALLMAY 10, 2017
2H EPCGDECONSOLIDATION
EFFECT -30€M
HIGHER FULL YEAR NON
RECURRING ~+25€M
1.170 1.190
1.140 1.160
1.165 1.185
€M
€M
€M
FREE CASH FLOW ~100€M
GUIDANCE CONFIRMED
18
Annexes
19
EBITDA
Ordinary D&A
Provisions
EBIT
Net Financial Expenses
Associates & JV
EBT
Taxes
Minorities
GROUP NET INCOME
1H 2016 1H 2017 %
+5.7%
-5.6%
+69.4%
-2.9%
-52.4%
-
-25.5%
-12.3%
n.s.
€MREVENUES +25.6%
CHANGE
-11
+25
-11
-33
-
-95
-13
+10
+595
649
(209)
(11)
369
(96)
4
278
(119)
(3)
614
(198)
(36)
380
(63)
4
373
(106)
(13)
254
2,9182,323
Result from non recurr. transactions n.s.-51152
-38.2%-97157
Net result from discontinued operations n.s.+11-
+35
EPCG write-off n.s.-60(60)-
P&L
1H CONSOLIDATED RESULTS
20
Intangible Assets
Shareholdings and Other Non Current Financial Assets
Other Non Current Assets/Liabilities
Deferred Tax Assets and Liabilities
Provisions for Risks, Charges and Liabilities for landfills
Employee Benefits
NET FIXED CAPITAL
Inventories
Trade receivables and other current Assets
31.12.2016Restated
30.06.2017 %€M
Tangible Assets 5,129
Current tax Assets/Liabilities
WORKING CAPITAL AND OTHER CURRENT ASSETS/LIABILITIES
TOTAL CAPITAL EMPLOYED
Equity
Net Financial Position
TOTAL SOURCES
1,704
80
(82)
341
(671)
(365)
6,136
159
2,210
37
278
6,415
3,279
3,136
6,415
Trade payables and other current Liabilities (2,128)
Non current Assets /Liabilities held for sale 1
4,979 -2.9%
1,709 0.3%
76 -5.0%
(76) -7.3%
297 -12.9%
(636)
(348) -4.7%
6,001 -2.2%
168 5.7%
1,878 -15.0%
(30) n.s.
356 +28.1%
6,358 -0.9%
3,311 +1.0%
3,047 -2.8%
6,358 -0.9%
(1,660) -22.0%
-5.2%
1 n.s.
BALANCE SHEET
1H CONSOLIDATED RESULTS
21
2016
42
66
57
42
239
-2
2 0 1
-2
1
-3
LGH
31
2017*
43
57
64
14
39
31
267 -119
2017
51
69
62
39
31
285
12
4
16
Gen. &Trading
EnergyRetail
Waste
Networks& DH
EPCG A2ASmart
City Corporate
14
5
Costscovered
byrevenues
Changein perimeter
14
14
5
LGH
Gen. &Trading
EnergyRetail
Networks
& DH
Waste
EPCG
A2ASmartCity
Corporate
(*) 2017 net of change in perimeter and costs covered by revenues
+46
+28
EXTERNAL COSTS
1H CONSOLIDATED RESULTS
Excluding LGH: -3€M
€M
22
1H 2016
12,003
Change inperimeter
-144
11,859
Netreduction
-150
LGH
1,221
1H 2017excluding
change in perim.
12,930466
1H 2017
13,396
1H 2016excluding
change in perim.
Change inperimeter
1H2016
332
-3 -1
328 1 3
-4
LGH
33
1H 2017exclud.
changein perimeter
360 011
1H2017
371
Change in
perimeter
Red.schemes
1H 2016exclud.
changein perimeter
Othercosts
Costeffect
FTEeffect
Red.schemes
Change inperimeter
FTE(1)
LABOUR COSTS (€M)
+1,394
(1) A2A Group’s Full Time Equivalent
+39
+32
LABOUR COSTS
1H CONSOLIDATED RESULTS
23
Bonds
Loans
GROSS DEBT MATURITIES AS OF 30/06/2017
1H CONSOLIDATED RESULTS
€M
2017
50
50
2018
300
96
396
2019
567
99
666
2020
145
145
2021
430
95
525
2022
500
91
591
2023
300
86
386
2024
300
64
364
2025
300
65
365
2026
47
Beyond
2026
98
180
278
47
24
RELAUNCH
• 1st Plastic treatment plant (Cavaglià): construction phase started
• 2nd Plastic treatment plant (Muggiano): construction authorisationgranted
• 1st FORSU plant: VIA presented
• More than 100,000 new mass-market contracts
• Increase to 90% of Lumenergia share capital (now fully consolidated)
• LGH:
‒ waste collection for 160k inhabitants in 49 municipalities in Cremona area
‒ start-up of subsidiary rationalization
REGENERATION
RESHAPE
• Public Lighting: Lainate tender won
• Acquisition of Patavina Technologies to develop IoT solutions
• A2A Smart City technological partner in “Oltre la Strada”, an urban regeneration program
• Launch of Milan E-HUB with 74 charges points expandable up to 132 electrical setup to serve Unareti EV fleet
• energy production +3% vs. Q2 2016: CCGT more than offsetting lower hydraulicity
UPDATE 3R
25
DISCIPLINE, DIALOGUE &
DIGITAL
• Lean Project underway, operational efficiencies already achieved; LGH started the lean roll-out in Q2
• 860 managers participated in ABC management development project focus on Listening, Needs and Change
• New external lighting concept at Vittoriale
• 2 new territorial sustainability reports presented (Milan and Bergamo)
• Winner of TopLegal Corporate Counsel Awards 2017 for Corporate Social Responsibility
• Company sustainability commitment strengthened: A2A Ambienteawarded ISO 50001: 2011 – Energy Management System certification for its WTE plants in Brescia, Milan and Corteolona
• A2A Energia project to identify digital championships, to improve digital relationships with customers
• Roll out of Work Force Management in Unareti and A2A Ciclo Idrico
• Start up of Maximo Refoundation project – new operation&maintenancesystem for networks: adoption of mobile technologies to maximize efficiency
ADDITIONAL • A2A, ACSM-AGAM, ASPEM, AEVV and Lario Reti Holding – deadline of MoU extended to the end of September
UPDATE 3D
26
Operational annexes
27(1) Net of intermediated Ipex volumes
(1)
VOLUMES
1H CONSOLIDATED RESULTS
28
ENERGY SCENARIO
1H CONSOLIDATED RESULTS
(1) Gas at virtual trading point
(2) Pfor 162/14 Oct 2014-Mar 2016.
(3) hourly average for each month
(4) based on gas at virtual trading point with 51% efficiency; includes transport costs
(5) 35% efficiency - includes cost spread on API2 and transport cost
(6) data subject to update by Terna
Average data1H
20161H
2017D % vs
2016
Brent $/bbl 41,0 52,8 29%
CO2 - EU ETS cost €/Tonn 5,7 5,0 -13%
Green Certificates €/MWh 99,6 0,0 -100%
€/$ €/$ 1,1 1,1 -3%
Brent € €/bbl 36,7 48,9 33%
PSV(1) €/MWh 14,6 19,3 32%
AEEGSI Gas Tariff (2) c€/mc 16,0 19,1 19%
Coal € (API2) €/Tonn 42,0 72,9 74%
PUN baseload(3) €/MWh 37,0 51,2 38%
PUN peak(3) €/MWh 40,9 57,4 40%
PUN off-peak(3) €/MWh 34,9 47,7 37%
CCGT gas cost(4) €/MWh 35,3 45,5 29%
Spark Spread CCGT_PSV vs Baseload €/MWh 1,7 5,6 n.a.
Spark Spread CCGT_PSV vs Peakload €/MWh 5,6 11,8 n.a.
Spark Spread CCGT_PSV vs Off-Peak €/MWh -0,4 2,2 n.a.
Clean Spark Spread vs Baseload €/MWh -0,4 3,8 n.a.
Clean Spark Spread vs Peakload €/MWh 3,4 9,9 n.a.
Clean Dark Spread vs Baseload(5) €/MWh 6,2 9,3 50%
29
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