Acea — Investor Presentation 2015

Jul 29, 2015

Acea Group 1H2015 Results

Rome 29 July 2015

Financial highlights

(€m)		1H14	1H15	Change %
	Consolidated revenues	1,511.2	1,441.1	-4.6%
	EBITDA	331.0	353.3	+6.7%
	EBIT	188.4	202.7	+7.6%
	Group net profit/(loss)	80.5	99.3	+23.4%

Capex	142.3	167.5	+17.7%

(€m)	30 June 2014 (a)	31 Dec. 2014 (b)	30 June 2015 (c)	Change % (c/a)	Change % (c/b)
NET DEBT	2,376.7	2,089.1	2,128.9	-10.4%	+1.9%
Shareholders' Equity	1,427.0	1,502.4	1,518.6	+6.4%	+1.1%
Invested Capital	3,803.7	3,591.5	3,647.5	-4.1%	+1.6%

EBITDA

Total number of employees	1H2014	1H2015
Acea Spa	671	652
Environment	216	220
Energy	533	541
Water °	2,004	1,967
Network	1,380	1,344
Total	4,804	4,724

° Figures do not include:

• 1H2014 Overseas water operations: 410

• 1H2015 Overseas water operations: 264

EBITDA €m

+6.7%
-------	--

EBITDA and Key quantitative data

Environment Increase of volume of electricity sold by ARIA's plants +1.3€m

Shutdown of the Kyklos plant -1.9€m

(€m)	1H14	1H15	Change %	Key quantitative data	1H14	1H15
EBITDA	27.8	27.1	-2.5%	Treatment and disposal (/000s of tonnes)	399	380
Capex	4.6	9.8	+113.0%	WTE electricity sold (GWh)	121	132

EBITDA main drivers

EBITDA main drivers Energy production margin decrease (fall in energy prices and volumes decrease) -0.8€m

(€m)	1H14	1H15	Change %	Key quantitative data	1H14	1H15
EBITDA	45.7	55.9	+22.3%	Total Electricity production (GWh)	293	280
Production	19.1	18.3	-4.2%	Total Electricity sold (GWh)	5,533	4,793
Sales	26.6	37.6	+41.4%	Enhanced Protection Market	1,568	1,526
				Free Market	3,965	3,267
Capex	6.6	6.6	_	Total Gas sold (Mmc)	66	78

EBITDA and Key quantitative data

Growth at companies consolidated using the equity method +4.8€m

Extraordinary items -11.6€m (including Aguazul Bogotà non-recurring income 2.5€m)

(€m)	1H14	1H15	Change %	Key quantitative data	1H14	1H15
Profit/(Loss) on investments consolidated under IFRS 11	8.3	13.1	+57.8%	Total volumes of water sold (Mmc)	276	270
of which: EBITDA	60.3	67.6	+12.1%
of which: Depreciation, write-off and provision	(39.4)	(43.3)	+9.9%
of which: Financial income/(expense)	(5.0)	(4.4)	-12.0%
of which: Income tax expense	(7.6)	(6.8)	-10.5%
EBITDA	138.2	146.7	+6.2%
Capex	67.6	74.6	+10.4%

EBITDA and Key quantitative data

Acea Distribuzione margin increase +4.3€m

Photovoltaic activity margin increase +0.2€m

Public Lighting margin decrease -0.3€m

(€m)	1H14	1H15	Change %	Key quantitative data	1H14	1H15
EBITDA	119.1	123.3	+3.5%	Total Electricity distributed (GWh)	5,061	5,087
Capex	59.1	67.7	+14.6%

(€m)	1H14	1H15	Change %
EBITDA	0.2	0.3	n.s.
Capex	4.4	8.8	+100%

EBIT and Net Profit

Cash flow

CASH FLOW ANALYSIS (€m)	1H14	2014	1H15
EBITDA	331	718	353
Change in net working capital	(121)	76	(23)
Investment	(66)	(317)	(168)
Change in net fixed assets	(104)	(21)	(17)
Free Cash Flow 1	40	455	145
Net finance income/(costs)	(51)	(101)	(45)
Income tax expense	(55)	(121)	(53)
Free Cash Flow 2	(66)	233	47
Dividends and other (Equity)	(63)	(74)	(86)
Profit/(loss) from investments	1	1	(1)
Change in Net Financial Position	(128)	160	(40)

Net Debt

(€m)	30 June 2014 (a)	31 Dec. 2014 (b)	30 June 2015 (c)	Change (c-a)	Change (c-b)
NET DEBT	2,376.7	2,089.1	2,128.9	(247.8)	39.8
Medium/Long-term	2,317.3	3,006.4	2,671.2	353.9	(335.2)
Short-term	59.4	(917.3)	(542.3)	(601.7)	375.0

NET DEBT/ SHAREHOLDER'S EQUITY 31 Dec. 2014	NET DEBT/ SHAREHOLDER'S EQUITY 30 June 2015	(€m) NET DEBT 31 Dec. 2013 – 30 June 2014 2,249	(€m) NET DEBT 31 Dec. 2014 – 30 June 2015
1.4x	1.4x	128 2,377 +5.7%	40 2,129 2,089 +1.9%

Semester vs Semester improvement: 128-40 = 88 €m

Disclaimer

THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT REFLECT THE COMPANY'S MANAGEMENT'S CURRENT VIEWS WHIT RESPECT TO FUTURE EVENTS AND FINANCIAL AND OPERATIONAL PERFORMANCE OF THE COMPANY AND ITS SUBSIDIARIES.

THESE FORWARD-LOOKING STATEMENTS ARE BASED ON ACEA S.P.A.'S CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. BECAUSE THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES, ACTUAL FUTURE RESULTS OR PERFORMANCE MAY DIFFER MATERIALLY FROM THOSE EXPRESSED IN OR IMPLIED BY THESE STATEMENTS DUE TO ANY NUMBER OF DIFFERENT FACTORS, MANY OF WHICH ARE BEYOND THE ABILITY OF ACEA S.P.A. TO CONTROL OR ESTIMATE PRECISELY, INCLUDING CHANGES IN THE REGULATORY ENVIRONMENT, FUTURE MARKET DEVELOPMENTS, FLUCTUATIONS IN THE PRICE AND AVAILABILITY OF FUEL AND OTHER RISKS.

YOU ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN, WHICH ARE MADE ONLY AS OF THE DATE OF THIS PRESENTATION. ACEA S.P.A. DOES NOT UNDERTAKE ANY OBLIGATION TO PUBLICLY RELEASE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE OF THIS PRESENTATION.

THIS PRESENTATION DOES NOT CONSTITUTE A RECOMMENDATION REGARDING THE SECURITIES OF THE COMPANY.

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PURSUANT TO ART. 154-BIS, PAR. 2, OF THE UNIFIED FINANCIAL ACT OF FEBRUARY 24, 1998, THE EXECUTIVE IN CHARGE OF PREPARING THE CORPORATE ACCOUNTING DOCUMENTS AT ACEA, FRANCO BALSAMO – CFO OF THE COMPANY, DECLARES THAT THE ACCOUNTING INFORMATION CONTAINED HEREIN CORRESPOND TO DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS.