milan, july 29th, 2016€¦ · milan, july 29th, 2016. this information was prepared by a2a and it...
TRANSCRIPT
A2A
H1 2016 Results
Milan, July 29th, 2016
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
Update 3R
2
RESTRUCTURE
A2A gencogas, platform for the Italian thermoelectric consolidation
A2A Energie Future, SPV for traditional thermal plants (Brindisi, San Filippoand Monfalcone) re-conversion
Integration of Edipower Hydro plants and A2A Trading into A2A, with benefitsfrom company simplification and best practice sharing ongoing
RELAUNCH
Unareti, a single company for the distribution of electricity and gas,established with positive effects on costs and investment
Closed two M&A deals in waste sector, LaBiCo and Rieco Resmal; otherdeals in pipeline
Growth of retail customers and inhabitants reached by collectionservices on track
Approved the Integrated Water Cycle adjustment tariff (period 2007-11)
RESHAPE
Start-up of a new thermodynamics solar system (STEM®) in partnershipwith Magaldi in San Filippo plant
Launch of A2A Smart City, a new company aimed at cities smarttransformation
Nissan-A2A partnership for e-mobility Fast Charger network in Milan
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
Update 3D and additional projects underway
3
DISCIPLINE,DIALOGUE &
DIGITAL
Discipline:
- En&A: results better than expected
- Further improvement in Retail credit collection
- Lean Project ongoing in several functional units, many operationalefficiencies already achieved
Dialogue:
- 2015 Sustainability Report. Formally approved by the Shareholders'Meeting
- Issued the A2A Sustainability Policy with sustainability objectives to beachieved by 2030 and the A2A Sustainability Plan that lays them out intofeasible actions and concrete results by 2020
- «Banco dell’energia», a new innovative non profit organization to helpfamilies in hardship
- Smart working: Pilot Phase 1 launched
ADDITIONALPROJECTS
- Business Unit "Estero“: business development plan started
- Real Estate Rationalization
- LGH: green light, subject to conditions, from Antitrust Authority
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent. 4
H1 2016 Consolidated ResultsHighlights of the period
VsH1 2015
+ -
Regulated Components Retail
CCGT Energy Scenario
Import/Export EPCG
San Filippo del Mela
2007-2011 IWC balance
Hydroelectric production Trading portfolio
Gas and electricityallowed revenues
Fixed costs
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent. 5
H1 2016 vs H1 2015 Consolidated Results
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
H1 2015
152
H1 2016
212
FY 2015
2,897
H1 2016
2,832
H1 2015
2,467
H1 2016
2,323
H1 2016 vs H1 2015 ResultsConsolidated results
REVENUES EBITDA
GROUPNET INCOME
NET FINANCIALPOSITION
€M
-6%
-2%+67%
H1 2015
562
H1 2016
614
+9%
6
GROUP ORDINARYNET INCOME*
+60€M
* Excluding extraordinary items related to Edipower Non Proportional Demerger
H1 2015
152
H1 2016
254
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
H12015
562
-10 -4
547
Generation& Trading
-28
13
Waste
3
Networks&
DistrictHeating
-4
Internationalandother
3 534
H1 2016Non
RecurringItems
80
H12016
614
H1 2015Non
RecurringItems
Changein perim.
H12015
Ordinary
EnergyRetail
H12016
Ordinary
€M
+52
7
-13
H1 2016 vs H1 2015 ResultsGroup EBITDA
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
H1 2015
192
H1 2015non
recurringitems
-4
AstaCellina
-4
H1 2015Ordinary
184
Environ.Market
9
-2
TradingPortfolio
-10
Other
6
FixedCost (*)
-3
SFMEBITDA"mustrun"
-21
GasMargin
-7
H1 2016Ordinary
156
H1 2016non
recurringitems
14
H1 2016
170
Plants'Hedging and
Dispatching (*)
H1 2016 vs H1 2015 ResultsFocus on Generation & Trading EBITDA
-22
8
€M
-28
(*) Includes San Filippo del Mela merchant
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
H12015
54
-0.5
53
ElectricityMarket
10
GasMarket
1
FixedCosts
-1
Other
4
H12016
Ordinary
666
H1 2016
73
H1 2015Non
RecurringItems
H12015
Ordinary
H1 2016Non
RecurringItems
+19
+13
H1 2016 vs H1 2015 ResultsFocus on Energy Retail EBITDA
9
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
H1 2015
14
71
34
110
H1 2015 NonRecurring
Items
-2
H1 2015Ordinary
14
70
33
108
Collection
3
Urban WasteTreatment
Plants
OtherTreatment
Plants
-3
Internationalprojects
0
H1 2016Ordinary
11
73
36
111
H1 2016 NonRecurring
Items
H1 2016
11
81
36
1193
8
H1 2016 vs H1 2015 ResultsFocus on Waste EBITDA
€M
Urban Waste Treatment Plants
Collection Other Treatment Plants
International Projects
10
+9
+3
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior writtenconsent.
H12015
97
103
-136
32
75 75
31
12
-136
101
98
WaterCycle
ElectricityNetworks
-8
GasNetworks
-4
PublicLighting
0
DistrictHeating
Fixed Costs
10
H12016
Ordinary
93
94
-126
35
69
H1 2016Non
recurringItems
H12016
93
95
-126
67
86
12
H1 2015Non
RecurringItems
H12015
Ordinary
4
-6
12
12177
51
227183 181 177
51
227183 181
€M +44
11
-4
Gas NetworksContribution Margin
Electricity NetworksContribution Margin
Water CycleContribution Margin
Public LightingContribution Margin Fixed Costs
HeatingContribution Margin
-2
H1 2016 vs H1 2015 ResultsFocus on Networks and District Heating EBITDA
51
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
H1 2015
9
23
32
Generation and Retail
-1
Distribution
4
H1 2016
13
22
350
H1 2016 vs H1 2015 ResultsFocus on International EBITDA
€M
+3
12
Energy
Other
Distribution
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
2016EBITDA
614
-36
52 4
-63
EBT
373
Taxes
-106 -13
NetIncome
254
D&A
-198
RiskProvisions
EdipowerDemerger
Capital Gain
Investmentsat equity
Net
FinancialExpenses
Minorities
€M
562 -199 -1 239 -77 -10 1522015A
H1 2016 vs H1 2015 ResultsFrom EBITDA to Group Net Income
13
3 -77-49
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
GroupReported
Net IncomeH1 2016
254
EdipowerNon Proportional
Demerger
-42
GroupOrdinary
Net IncomeH1 2016
212
GroupOrdinary
Net IncomeH1 2015
152
H1 2016 vs H1 2015 ResultsFrom Group Net Income to Group Ordinary Net Income
€M
+60
14
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
H1 2015
27
52
54
133
H1 2016
11
58
61
130
Maintenance
Development
Mandatory
H1 2015
71
3
7
28
23
133
H1 2016
78
4
10
8
2
28
130
1Generation &
Trading
Energy Retail
Waste
Networks and DistrictHeating
Corporate
International
H1 2016 vs H1 2015 ResultsCapex
BREAKDOWN BY ACTIVITY BREAKDOWN BY BUSINESS
-3 -3
€M
15NOTE: 2016A Networks figures include Brescia LED project investment for an amount equal to 1€M, reclassified as «financial receivable» in Financial Statement according to IFRICtreatment
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
2016EBITDA
614
Changein Net
WorkingCapital
-71
Change inother
Assets/Liabilities
-74
Use ofFunds
-51
Tax Paid
-7
NetFinancialExpenses
-54
FFO(1)
357
Capex
-129
Dividends
-126
FreeCashFlowante
LGH acquisition
102
SharesBuyback
-37
Net FreeCashFlow
65
H1 2016 ResultsNet Free Cash Flow
€M
(1) Funds from operations after working capital change
16
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent. 17
Annexes
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
H1 2016 vs H1 2015 ResultsConsolidated Results: P&L
EBITDA
D&A
Provisions
EBIT
Net FinancialExpenses
Associates & JV
EBT
Taxes
Minorities
GROUP NETINCOME
H1 2015 H1 2016 %
+9.3%
-0.5%
-26.5%
+21.0%
-18.2%
+33.3%
+56.1%
+37.7%
+30.0%
€M
REVENUES -5.8%
CHANGE
+52
+1
+13
+66
+14
+1
+134
-29
-3
-144
614
(198)
(36)
380
(63)
4
373
(106)
(13)
562
(199)
(49)
314
(77)
3
239
(77)
(10)
152
2,3232,467
Result from nonrecurr. transactions n.a.+5352(1)
18+67.1%+102254
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
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
FY 2015 H1 2016 %€M
Tangible Assets 5,0135,067 -1.1%
Current tax Assets/Liabilities
WORKING CAPITAL
TOTAL CAPITAL EMPLOYED
Equity
Net Financial Position
TOTAL SOURCES
1,3471,348 -0.1%
8080 -
(64)(66) -3.0%
285308 -7.5%
(590)(576)
(348)(332) +4.8%
5,7235,829 -1.8%
142184 -22.8%
1,7491,652 +5.9%
(48)28 -271.4%
232180 +28.9%
5,9586,156 -3.2%
3,1263,259 -4.1%
2,8322,897 -2.2%
5,9586,156 -3.2%
Trade payables and other current Liabilities (1,611)(1,684) -4.3%
19
+2.4%
Non current Assets /Liabilities held for sale 3147 n.a.
H1 2016 ResultsConsolidated Results: Balance Sheet
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
2015
48
18
58
45
11
65
245
-5
2015*
48
18
56
45
62
240 0
Energy
Retail
1 0
Networks& DistrictHeating
-3 -2 -1
2016*
47
16
56
42
12
62
2356 1
2016
48
16
57
42
12
66
241
Changein
perimeter
11
Gen. &Trading Waste International
Otherservices
& Corporate
Costscovered
byrevenues
Changein
perimeter
Generation& Trading
EnergyRetail
Networks& DistrictHeating
Waste
Internat.
Other
20
-4
(*) 2015 and 2016 excluding change in perimeter and costs covered by revenues
-5
H1 2016 vs H1 2015 ResultsExternal Costs
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
H1 2016 vs H1 2015 ResultsLabour costs
H1 2015
326
Changein perim.
-4.3
322
Other
costs
7.1
FTE
effect
-2.9
Cost
effect
2.2
H1 2016
excludingchange in perim.
328
Changein perim.
4.9
H1 2016
333
H1 2015
excludingchange in perim.
H1 2015
12,194
Change in
perimeter
-219
H1 2015
excludingchange in perim.
11,975
Net
reduction
-194
H1 2016
excludingchange in perim.
11,781 263
H1 2016
12,044
Change inperimeter
21
FTE(1)
LABOURCOSTS (€M)
-150
(1) A2A Group’s Full Time Equivalent
+7
+6
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.
2016
503
35
538
2017
74
74
2018
70
70
2019
750
75
825
2020
79
79
2021
500
69
569
2022
500
69
569
2023
300
63
363
2024
42
42
2025
300
38
338
Beyond2025
98
91
189
€M
H1 2016 ResultsGross debt maturities as of 30/06/2016
Bonds
Loans
22
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent. 23
Operational annexes
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent. 24
H1 2016 vs H1 2015 ResultsVolumes
Volumes
(1)
(1) H1 2015 Hydro production includes 150GWh related to Asta Cellina
H1 2015A H1 2016AΔ vs
2015
Δ% vs
2015
A2A Group Thermal production GWh 4.323 4.134 -190 -4%of which
CCGT production GWh 1.557 1.849 292 19%
Coal production GWh 1.164 1.048 -117 -10%
Oil production GWh 992 825 -167 -17%
EPCG production GWh 610 412 -198 -32%
A2A Group Hydro production GWh 3.162 3.343 182 6%
of which
A2A and Edipower production GWh 2.278 2.261 -17 -1%
EPCG production GWh 884 1.082 199 22%
Wholesale electricity sales and Foreign Markets GWh 4.373 3.122 -1.251 -29%
Ipex sales GWh 3.609 4.804 1.195 33%
Electricity sales GWh 3.736 3.989 253 7%
Electricity sales to EPCG customers GWh 1.405 1.156 -250 -18%
Gas sales Mmc 628 664 36 6%
Electricity distributed GWh 5.522 5.466 -56 -1%
Gas distributed Mmc 1.068 1.039 -28 -3%
Water distributed Mmc 29 31 1 4%
Heat volumes sales GWht 1.334 1.332 -2 0%
Cogeneration electricity sales GWh 146 109 -37 -25%
Collected waste Kton 648 662 13 2%
Waste disposal Kton 1.328 1.224 -104 -8%
WTE electricity production GWh 665 665 0 0%
WTE heat production GWht 650 692 42 6%
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior writtenconsent.
2525
H1 2016 vs H1 2015 ResultsEnergy Scenario
(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 data H1 2015 H1 2016D vs
2015
D % vs
2015
Brent $/bbl 59,4 41,0 -18,4 -30,9%
CO2 - EU ETS cost €/Tonn 7,2 5,7 -1,5 -20,9%
Green Certificates €/MWh 97,6 99,6 2,0 2,0%
€/$ €/$ 1,1 1,1 0,0 0,0%
Brent € €/bbl 53,3 36,7 -16,6 -31,1%
PSV(1)
€/MWh 23,3 14,6 -8,7 -37,4%
AEEGSI Gas Tariff(2 )
c€/mc 24,1 16,0 -8,1 -33,6%
Coal € (API2) €/Tonn 53,6 42,0 -11,6 -21,6%
PUN baseload(3)
€/MWh 49,9 37,0 -12,9 -25,8%
PUN peak(3)
€/MWh 54,7 40,9 -13,8 -25,3%
PUN off-peak(3)
€/MWh 47,2 34,9 -12,3 -26,1%
CCGT gas cost(4)
€/MWh 51,8 35,3 -16,5 -31,9%
Clean Spark Spread vs Baseload €/MWh -4,7 -0,4 4,3 n.a.
Clean Spark Spread vs Peakload €/MWh 0,1 3,4 3,3 n.a.
Clean Dark Spread vs Baseload(5 )
€/MWh 12,9 6,2 -6,6 -51,6%
Italian electricity demand(6)
TWh 154,2 151,0 -3,1 -2,0%
Gas demand Bmc 35,2 35,7 0,5 1,3%
This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior writtenconsent.
2626
This document has been prepared by A2A solely for investors and analysts. This document does not constitute an offer or invitation to purchase or subscribe anyshares or other securities and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.Some information contained herein and other material discussed at the meetings may include forward-looking information based on A2A’s current beliefs andexpectations. These statements are based on current plans, estimates, projections, and projects and therefore you should not place undue reliance on them.Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differmaterially from those contained in any forward-looking statement. Such factors include, but are not limited to changes in global economic business, changes inthe price of certain commodities including electricity, gas and coal, the competitive market and regulatory factors. Moreover, forward-looking statements arecurrent only at the date on which they are made.