AI assistant
Snam — Earnings Release 2016
Jul 27, 2016
4042_ir_2016-07-27_2ff29a96-7da7-493d-9342-6c424fb6f941.pdf
Earnings Release
Open in viewerOpens in your device viewer
2016 Interim Review
Milan, July 27th , 2016
snam.it
Outline
Highlights and operational performance
1H 2016 Consolidated Results
Highlights and operational performance
Marco Alverà
Chief Executive Officer
Italian Gas Market in 1H 2016
GAS CONSUMPTION (bcm)
* Includes: NGV, Agriculture and Non-Energy Use **including strategic reserve Source: National Transport Network Balance
Summary performance
Performance in line with expectations thanks to our solid business model
1H 2016 Highlights
Progress in the Demerger process
- •Credit rating assigned to ITG Holding
- •Financing commitments granted to Italgas
- •Snam Lenders waiver obtained
- •Snam Board of Directors approval of the demerger
- •Snam Capital Market Day and roadshow
- •Demerger Information Document published
- • Snam Shareholder meeting to approve the demerger • ITG Holding Board of Directors appointment • Filing of listing documentation to Borsa Italiana and Consob • Snam Bond Holders meeting for demerger consent • ITG Holding CMD and Roadshow 1 August 3rd quarter 3rd quarter 3rd quarter
- •ITG Holding Listing
By year end 4th quarter
ACCOMPLISHED
NEXT STEPS
1H2016 Consolidated Results
Antonio Paccioretti
Chief Financial Officer
Income Statement
| $[6 \text{ mm}]$ | 2015 1H | 2016 1H | Change |
|---|---|---|---|
| Revenues | 1,837 | 1,724 | $-113$ |
| Operating expenses | $-403$ | $-410$ | $-7$ |
| EBITDA | 1,434 | 1,314 | $-120$ |
| Depreciation & amortisation | $-422$ | $-447$ | $-25$ |
| EBIT | 1,012 | 867 | $-145$ |
| Net interest income (expenses) | $-186$ | $-176$ | $+10$ |
| Net income from associates | 69 | 64 | $-5$ |
| EBT | 895 | 755 | $-140$ |
| Income taxes | $-283$ | $-229$ | $+54$ |
| NET PROFIT | 612 | 526 | $-86$ |
Revenues
| $[6 \text{ mm}]$ | 2015 1H | 2016 1H | Change | |
|---|---|---|---|---|
| Regulated revenues | 1,796 | 1,700 | $-96$ | |
| Transport | 947 | 881 | $-66$ | |
| Distribution | 528 | 501 | $-27$ | |
| Storage | 236 | 252 | $+16$ | |
| LNG | 11 | 10 | $-1$ | |
| Pass-through revenues | 74 | 56 | $-18$ | |
| Other revenues | 41 | 24 | $-17$ | |
| TOTAL REVENUES | 1,837 | 1,724 | $-113$ |
Operating Expenses
| $\lceil \epsilon \mod 1 \rceil$ | 2015 1H | 2016 1H | Change |
|---|---|---|---|
| Regulated activities | 367 | 372 | $+5$ |
| Controllable fixed costs | 248 | 235 | $-13$ |
| Variable costs | 11 | 14 | $+3$ |
| Other costs | 34 | 67 | $+33$ |
| Pass-through costs | 74 | 56 | $-18$ |
| Non regulated activities | 36 | 38 | $+2$ |
| TOTAL COSTS | 403 | 410 | $+7$ |
| $[6 \text{ mm}]$ | 2015 1H | 2016 1H | Change | |
|---|---|---|---|---|
| Cost breakdown by business (1) : | ||||
| Transport | 127 | 106 | $-21$ | |
| LNG | 7 | 6 | $-1$ | |
| Storage | 31 | 32 | $+1$ | |
| Distribution | 156 | 188 | $+32$ |
EBIT Analysis
Net Profit Analysis
Snam debt structure
Key figures Existing debt as of 30 June 2016 (€ bn) Bond Maturity Profile (€ bn) as of 30 June 2016
Fixed/variable rate debt: 62% / 38%
M/L Term debt maturity: ca. 5 years
Banking facilities:
- •Waiver on demerger of Italgas
- • 1-year extension of pool banking facilities
0.00.51.01.52016 2017 2018 2019 2020 2021 2022 2023 2024
Debt capital market
Bilateral banking facilities
Institutional lenders financing
2.0
14
2016 1H: cash flow and change in net debt
15
Balance Sheet
| [ € m n ] |
De 31 20 c, 15 |
Ju 30 20 n, 16 |
Ch an ge |
|---|---|---|---|
| Ne t in ste d c ita l ve ap |
21 36 5 , |
21 42 7 , |
+6 2 |
| Fix ed ita l ca p |
22 12 1 , |
22 46 4 , |
+3 43 |
| Ta ible fix ed ets ng ass |
15 39 6 , |
15 71 5 , |
+3 19 |
| Inta ible fix ed ets ng ass |
5, 27 5 |
5, 26 5 |
-10 |
| Fin ial eiv ab les he ld f ting tivi ties anc rec or op era ac |
78 | 14 7 |
+6 9 |
| Eq uity ed and her inv unt ot est nts -ac co me |
1, 37 2 |
1, 33 7 |
-35 |
| Ne t w ork ing ita l ca p |
-60 7 |
-89 0 |
-28 3 |
| Re iva ble ce s |
2, 09 2 |
1, 75 4 |
-33 8 |
| Lia bili ties |
-2, 69 9 |
-2, 64 4 |
+5 5 |
| Pro vis ion s f loy be fits or em p ee ne |
-16 6 |
-16 5 |
+1 |
| As ts he ld for le a nd di tly lat ed lia bil itie se sa rec re s |
17 | 18 | +1 |
| Ne t fi ial de bt na nc |
13 77 9 , |
14 177 , |
+3 98 |
| Sh ho lde rs' uit are eq y |
7, 58 6 |
7, 25 0 |
-33 6 |
Q & A Session
17
Annexes
Operational Data
| 1 2 0 1 H 5 |
1 2 0 1 6 H |
∆ % |
||
|---|---|---|---|---|
| T t r a n s p o r |
G ( ) i j d i h k b t t t t a s n e c e n o e n e w o r c m |
3 2. 8 |
3 4. 1 |
4. 0 + |
| G ( ) i l i k k i i t t a s p p e n e n e w o r m n o p e r a o n |
3 2, 3 4 5 |
3 2, 4 4 4 |
0. 3 + |
|
| S t S i ( b ) t t o r a g e o r a g e c a p a c c m y ( *) •M d l i t o u a o n |
1 9 5. |
1 6. 3 |
2. 5 + |
|
| 1 1. 4 |
1 1. 8 |
3. 5 + |
||
| S i • t t r a e g c |
4. 5 |
4. 5 |
- - |
|
| G ( ) d h h b t t t a s m o v e r o u g s o r a g e s y s e m c m |
1 1. 9 6 |
1 1. 4 2 |
4. 5 - |
|
| •I j i t n e c o n |
4. 6 7 |
4. 8 8 |
2. 5 + |
|
| •W i h d l t r a w a |
2 0 7. |
6. 4 5 |
9. 2 - |
|
| D i i b i t t G d i i b d ( b ) t t s r u o n a s s r u e c m G ( ) A i M i d l i i i l l i t t t t # c v e a s e e r n g a r e e v e r y p o n s m o n |
4. 4 3 |
4. 2 7 |
3. 7 - |
|
| 6. 2 5 |
6. 3 5 |
0. 1 + |
Disclaimer
Snam's Chief Financial Officer, Antonio Paccioretti, in his position as manager responsible for the preparation of financial reports, certifies pursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and information disclosures herewith set forth correspond to the company's evidence and accounting books and entries.
This presentation contains forward-looking statements regarding future events and the future results of Snam that are based on current expectations, estimates, forecasts, and projections about the industries in which Snam perates and the beliefs and assumptions of the management of Snam.
In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management are forward-looking in nature.
Words such as 'expects', 'anticipates', 'targets', 'goals', 'projects', 'intends', 'plans', 'believes', 'seeks', 'estimates', variations of such words, and similar expressions are intended to identify such forward-looking statements.
These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future.
Therefore, Snam's actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, political, economic and regulatory developments in Italy and internationally.
Any forward-looking statements made by or on behalf of Snam speak only as of the date they are made. Snam does not undertake to update forward-looking statements to reflect any changes in Snam's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.
The reader should, however, consult any further disclosures Snam may make in documents it files with the Italian Securities and Exchange Commission and with the Italian Stock Exchange.
20
2016 Interim Review
Milan, July 27th , 2016
snam.it