milan, july 30th, 2015 - amazon s3€¦ · model european awareness scenario workshop, which...

A2A

Milan, July 30th, 2015

H1 2015 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.

Update 3R

2

RESTRUCTURE

Record level of market share in MSD Nord market

Energy management and trading activities restructuring ongoing

Generation & Trading cost reduction in line with plan:

- -126 FTE vs. H1 2014

- -11 €M external costs vs. H1 2014

RELAUNCH

EPCG negotiation ongoing; first dividend distribution since 2009

District Heating:

- heat recovery from a glass manufacturer in Milan province

- underground connection of Canavese DH network to MilanCity Center completed

Retail: further free market customer base growth (+120k vs. H12014)

Expo: additional opportunity in Waste and Electricity Networks

Strong M&A pipeline in waste treatment

RESHAPE

First solar thermal plant for district heating in Southern Europebuilt in Varese

LED public lighting: Milan (~90%) and Brescia (~15%) projectsunder way; signed an agreement with Cassano d'Adda Municipality

Strategic Plan 2015 - 2019


Update 3D and additional projects underway

3

DISCIPLINE,DIALOGUE &

DIGITAL

Further improvement in Retail Credit Collection

Dialogue:

- A2A multi-stakeholder Forum: a meeting structured on the basis of themodel European Awareness Scenario Workshop, which involved manydifferent categories of stakeholders

- Public conference "The remuneration of the networks: a keyasset for the future of energy"

2014 Sustainability Report complying with GRI 4 guidelines

Diversity management project start-up

ADDITIONALPROJECTS

Project EN&A: saving target identified. Implementation phaselaunched

Signed a Letter of Intent with Linea Group Holding aimed atassessing a potential industrial partnership

Strategic Plan 2015 - 2019

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 2015 ResultsHighlights of the period

VsH1 2014

+ -Thermal Production

Switch Regulated to Free MarketCustomer Base

Cost Control

Climate Effect

Hydro Production

Positive Non Recurring Itemsin H1 2014

Legal Claim


2014

97

2015

152

2014

3.363

2015

3.240

2014

302

2015

314

H1 2015 vs H1 2014 ResultsKey Financials

2014

551

2015

562

EBITEBITDA

GROUP NET INCOMENET FINANCIAL

POSITION

€M

+4%+2%

+57% -4%

5


2014

551

2014

Non RecurringItems

-27

9

2014

Ordinary

533 9

Energy

Retail

-2 -7

District

Heating

5 9

EPCG

andother

3

2015

Ordinary

551 2

2015

Non RecurringItems

10

2015

562

2014Redundancy

Schemes

Generation& Trading

Waste Networks 2015Redundancy

Schemes

H1 2015 vs H1 2014 ResultsGroup EBITDA

€M

+11

6

+18


2014

193

2014Non

RecurringItems

-17

-25

9

2014Ordinary

177

Environm.Markets

24

-13

TradingPortfolio

-7

6

2015Ordinary

186

2015Non

RecurringItems

4 2

2015

192

-8

2014Redundancy

Schemes

PlantsHedging

and Dispatching

FixedCosts

2015Redundancy

Schemes

H1 2015 vs H1 2014 ResultsGeneration & Trading EBITDA

-1

7

+9

Electricity Margin +3


2014

47

2014Non Recurr.

Items

8

2014Ordinary

55

GasMarket

1

ElectricityMarket

1

Fixed costsand other

-4

2015Ordinary

53

2015Non Recurr.

Items

1

2015

54

H1 2015 vs H1 2014 ResultsEnergy Retail EBITDA

+7

-2


H1 2015 vs H1 2014 ResultsWaste EBITDA

2014

4

2

31

77

115

Collection

1

WTE

-6

OtherTreatment

Plants

1

Internationalprojects

-2

2015Ordinary

71

32

5

108

2015Non Recurring

Items

2

2015

71

34

5110

€M

Urban Treatment

Collection

Industrial Treatment

International Projects

-5

9

-7

Treatment Plants -5€M


2014

5

34

39

2014 Non

RecurringItems

3

2014

Ordinary

5

37

42

Price

Effect

-2

Climate

Effect

5

Commercial

development

2

Environm.

markets

-4

Heat

services

1

Other

2

2015

6

41

47

H1 2015 vs H1 2014 ResultsDistrict Heating EBITDA

€M

District Heating

Heat Services

+8

10

+5

Volume Effect +7€M


2014

78

7

1

52

138

2014 NonRecurring

Items

-12

2014Ordinary

66

7

1

52

126

WaterCycle

1

ElectricityNetworks

2

GasNetworks

2

PublicLighting

4

2015Ordinary

68

8

5

54

135

2015Non recurr.

Items

1

2015

69

9

5

53

136

H1 2015 vs H1 2014 ResultsNetworks EBITDA

€M

-2

11

Gas Networks

Electricity Networks

Water Cycle

Public Lighting

+9


2014

21

8

1

30

Energy

1

Distribution Revenues

3

Other

-2

2015

22

9

132

H1 2015 vs H1 2014 ResultsEPCG EBITDA

€M

+2

Energy

Other

Distribution

Distribution +1€M

12


H1 2015 vs H1 2014 ResultsFrom EBITDA to Group Net Income

2015EBITDA

562

D&A

-199

RiskProvisions

-49

Net FinancialExpenses

-74

EBT

239

Taxes

-77

Minorities

-10

Net Income

152

€M

551 -229 -20 -96 206 -101 -8 972014

13


2014

15

57

52

124

2015

30

49

54

133

Maintenance

Development

Mandatory

H1 2015 vs H1 2014 ResultsCapex

BREAKDOWN BY ACTIVITY

2014

15

3

21

25

44

412

124

2015

28

1

23

23

48

37

133

Generation &

Trading

Energy Retail

Waste

District Heating

Networks

Corporate

EPCG

BREAKDOWN BY BUSINESS

+9 +9

€M

14


H1 2015 ResultsNet Free Cash Flow

2015EBITDA

562

Changein Net

WorkingCapital

-79

Use ofFunds

-38

Tax Paid

-8

NetFinancialExpenses

-66

FFO(1)

371

Capex

-135

Free CashFlow

236

Dividends

-113

Net FreeCash Flow

123

€M

(1) Funds from operations after working capital change

15

*

* Of which 2€M related to investments in shareholdings


615

449

2,910

3,973

Cash andequivalents +

Other Net AssetsFY 2014

-610

Net FinancialPosition FY 2014

3,363

Net Free CashFlow H1 2015

-123

Net FinancialPosition H1 2015

3,240

Cash andequivalents +

Other Net AssetsH1 2015

529

GrossFinancial

Debt H1 2015

586

232

2,951

3,769

GrossFinancial

Debt FY 2014

H1 2015 ResultsGross debt and net financial position

16

€M -204

Bonds

Loans

Fix

ed

rate

85%

Var.

15%

Fix

ed

rate

84%

Var.

16%

• Average debt maturity 5.8 years

• Average annual cost of debt from 3.9% of 2014 to 3.6% estimate 2015


Annexes


H1 2015 vs H1 2014 ResultsConsolidated Results: P&L

EBITDA

D&A

Provisions

EBIT

Net FinancialExpenses

Associates & JV

EBT

Taxes

Minorities

NET INCOME

H1 2015 H1 2014 %

+2.0%

-13.1%

n.a.

+4.0%

-22.8%

-40.0%

+16.0%

-23.8%

+25.0%

+56.7%

€M

REVENUES -4.4%

CHANGE

+11

+30

-29

+12

+23

-2

+33

+24

-2

+55

-115

562

(199)

(49)

314

(77)

3

239

(77)

(10)

152

551

(229)

(20)

302

(101)

5

206

(101)

(8)

97

2,467 2,582

18

Result from nonrecurr. transactions -100.0%-1(1) -


H1 2015 vs H1 2014 ResultsConsolidated Results: Balance Sheet

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

H1 2015 FY 2014 %€M

Tangible Assets 5,561 5,625 -1.1%

Current tax Assets/Liabilities

WORKING CAPITAL

TOTAL CAPITAL EMPLOYED

Equity

Net Financial Position

TOTAL SOURCES

1,303 1,318 -1.1%

83 82 +1.2%

(294) (287) +2.4%

302 323 -6.5%

(525) (498)

(336) (369) -8.9%

6,094 6,194 -1.6%

207 284 -27.1%

1,633 1,846 -11.5%

21 83 -74.7%

389 348 +11.8%

6,483 6,542 -0.9%

3,243 3,179 +2.0%

3,240 3,363 -3.7%

6,483 6,542 -0.9%

Trade payables and other current Liabilities (1,472) (1,865) -21.1%

19

+5.4%


2014

810

76

37

55

18

60

264

Gen. &Trading

-11

EnergyRetail

1

Waste

-1

Networks

-1

Other

-5

2015*

811

65

36

50

18

59

247

Wastechange inperimeter

3

2015

811

65

36

50

18

62

250

Generation &Trading

Energy Retail

District

Heating

Networks

Waste

EPCG

Other

20

-14

€M

H1 2015 vs H1 2014 ResultsFixed Costs

-17

(*) 2015 excluding change in perimeter


2014

342

Other costs

-15

FTE effect

-8

Cost effect

4

2015

excludingchange in perim.

323

Change in

perimeter

3

2015

326

2014

12,365

Net reduction

-361

2015

excludingchange in perim.

12,004

Change in

perimeter

190

2015

12,194

21

FTE(1)

LABOURCOSTS (€M)

-170

(1) A2A Group’s Full Time Equivalent

H1 2015 vs H1 2014 ResultsLabour costs

-16

-19


2015

49

49

2016

83

503

586

2017

85

85

2018

80

80

2019

83

750

833

2020

80

80

2021

70

500

570

2022

70

500

570

2023

64

300

364

2024

43

43

2025

42

300

342

Beyond2025

69

98

167

€M

H1 2015 ResultsGross debt maturities as of 30/06/2015

Bonds

Loans

22


Operational annexes


H1 2015 vs H1 2014 ResultsBreakdown of Volumes

Volumes H1 2014 H1 2015 Δ

A2A Group Thermal production GWh 3.247 4.323 1.076

of which

CCGT production GWh 1.181 1.557 376

Coal production GWh 835 1.164 329

Oil production GWh 641 992 351

EPCG production GWh 590 610 20

A2A Group Hydro production GWh 3.915 3.181 -733

of which

A2A and Edipower production GWh 3.044 2.280 -764

EPCG production GWh 870 902 31

Wholesale electricity sales and Foreign Markets GWh 4.121 5.365 1.244

Ipex sales GWh 4.768 2.561 -2.207

Electricity sales GWh 3.791 3.478 -312

Electricity sales to EPCG customers GWh 1.336 1.406 70

Gas sales Mmc 665 626 -39

Heat volumes sales GWht 1.149 1.334 185

Cogeneration electricity sales GWh 153 146 -7

Collected waste Kton 465 470 6

Waste disposal Kton 1.304 1.326 22

WTE electricity production GWh 704 665 -40

WTE heat production GWht 564 650 86

Electricity distributed GWh 5.405 5.522 118

Gas distributed Mmc 1.020 1.068 47

Water distributed Mmc 30 29 -1


H1 2015 vs H1 2014 ResultsEnergy Scenario

Average data 2014 2015 Δ vs 2014 Δ % vs 2014

Brent $/bbl 108,8 59,4 -49,4 -45,4%

CO2 - EU ETS cost €/Tonn 5,7 7,2 1,6 27,7%

Green Certificates €/MWh 91,9 97,6 5,7 6,2%

€/$ €/$ 1,37 1,12 -0,3 -18,6%

Brent € €/bbl 79,4 53,3 -26,1 -32,8%

PSV(1) €/MWh 23,2 23,3 0,1 0,5%

AEEGSI Gas Tariff(2) c€/mc 27,9 24,1 -3,7 -13,3%

Coal € (API2) €/Tonn 55,9 53,3 -2,6 -4,6%

PUN baseload(3) €/MWh 49,5 49,9 0,4 0,9%

PUN peak(3) €/MWh 56,2 54,7 -1,5 -2,7%

PUN off-peak(3) €/MWh 45,7 47,2 1,5 3,3%

CCGT gas cost(4) €/MWh 49,5 49,9 0,3 0,7%

Clean Spark spread vs Peakload €/MWh 2,2 2,1 -0,1 -5,9%

Clean Spark spread vs Baseload €/MWh -4,5 -2,7 1,8 40,1%

Clean Dark Spread vs Baseload(5) €/MWh 11,3 12,9 1,6 14,3%

Italian electricity demand(6) TWh 153,7 153,2 -0,4 -0,3%

Gas demand Bcm 32,7 35,2 2,6 7,9%

(1) Gas at virtual trading point

(2) Pfor 196/13 Jan 2014-Sep 2014; Pfor 162/14 Oct 2014-Jun 2015

(3) hourly average for each month

(4) based on gas at virtual trading point with 53% efficiency; transport costs included

(5) 35% efficiency – spread between energy prices and API2 coal cost (transport cost included)

(6) data subject to update by Terna


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.

milan, july 30th, 2015 - amazon s3€¦ · model european awareness scenario workshop, which...

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