9M 2017 Consolidated Results

Transcription

1 9M Consolidated Results Milan, November 13 th,

2 Highlights of the period 2

3 9M HIGHLIGHTS + - CCGT performance, Volumes, Spot Market and Ancillary Services Organic growth in DH, Networks and Waste LGH: standalone growth and FY consolidation Hydro volumes Feed in tariff/green Certificates San Filippo del Mela «merchant» in Q3 Non recurring YoY comparison EPCG put option exercise deconsolidation as of July Ongoing developments in investments for waste treatment plants Set up of A2A Rinnovabili and M&A First step in PV Renewables With impact on 9M economics MoU with Utilities of Northern Lombardy extended to December Tender offer on 2019 and 2021 bonds + new year issuance With impact on 4Q economics 3

4 9M HIGHLIGHTS KEY FINANCIAL INDICATORS REVENUES +22% EBITDA +2% 3,482 4, M 9M 9M 9M GROUP NET INCOME -30% GROUP ORDINARY NET INCOME* +14% -124 NET FINANCIAL POSITION ,136 3, , * Excluding extraordinary items 9M 9M FY 9M Before Change in perimeter deconsolidation of EPCG & Consolidation of REN 9M 4

5 Analysis of results 5

6 9M CONSOLIDATED RESULTS GROUP EBITDA Non recurring items EPCG Q3 Generation Ordinary & Trading Energy Retail Waste Networks & District Heating Smart City Corporate EPCG 1H Ordinary Non recurring items Generation in line with, much better than expected Solid growth in all other BU s EPCG deconsolidated as of July 1 6

7 9M CONSOLIDATED RESULTS GENERATION & TRADING EBITDA Non Ordinary recurring items Environ. Plants' Trading Market Portfolio Hedging and Dispatching Other Fixed costs SFM EBITDA Gas Margin Excellent CCGT performance on both MGP and MSD, in all quarters Hydro: lower volumes. Strong market prices offset by hedging San Filippo «Merchant» margin in Q3 Lower environmental markets margin Strong results on Gas optimization LGH Ordinary Non recurring items 7

8 9M CONSOLIDATED RESULTS ENERGY RETAIL EBITDA Non recurring items Ordinary Power Market Gas Market Fixed Costs Other LGH Ordinary Non recurring items Free market customer base: +148K Reduction in Unitary Margins mainly due to higher unbalancing costs 8

9 9M CONSOLIDATED RESULTS WASTE EBITDA Collection +4.2 Treatment Non recurring items Ordinary Collection Urban Waste Treatment Plants Other International Treatment Projects Plants LGH Ordinary Non recurring items Positive treatment plants margins from higher prices and quantities Collection Urban Waste Treatment Plants Other Treatment Plants International Projects 9

10 9M CONSOLIDATED RESULTS NETWORKS AND DISTRICT HEATING EBITDA Non recurring items Ordinary Electricity Networks Gas Networks Water Cycle District Heating Public Lighting LGH Ordinary Non recurring items DH: Consul System FY consolidation and performance. White Certificates optimization Water Cycle: tariff increase Water Cycle Electricity Networks Gas Networks Public Lighting Heating LGH (Networks & Heating) 10

11 9M CONSOLIDATED RESULTS EPCG EBITDA Delta 1H: -23 Q3 Generation and Retail Distribution Q3 1H 11

12 9M CONSOLIDATED RESULTS FROM EBITDA TO GROUP NET INCOME M EBITDA D&A Risk Provisions Non rec. Investments Net EPCG transact. carried Financial write-down at equity Expenses and put option discount (1) EBT Taxes Net result from discontinued operations Minorities 9M Net Income 9M 872 (308) (40) 52 4 (96) (145) 1 (17) 323 (1) -93, of which: -60 D&A (EPCG write-down) -33 Net Financial Expenses 12

13 9M CONSOLIDATED RESULTS CAPEX BREAKDOWN BY ACTIVITY BREAKDOWN BY BUSINESS M&A Mandatory Development Maintenance EPCG A2A Smart City Corporate Networks and District Heating Waste Energy Retail Generation & Trading 13

14 9M CONSOLIDATED RESULTS NET FREE CASH FLOW M EBITDA Change in Net Working Capital Change in other assets/ liabilities Use of Funds Tax Paid Net Financial Expenses FFO (1) Capex Dividends Net Free Cash Flow Change in perimeter NFP variation 9M 872 (68) (116) (56) (93) (56) 483 (233) (126) (1) Funds from operations after working capital change 14

15 Closing remarks 15

16 EBITDA GUIDANCE CONF. CALL JULY 31 st, ~60 non recurring ~1.200 NEW GUIDANCE ~55 non recurring ~30 green certificates postponed to 2018 GUIDANCE IMPROVED 16

17 FAVOURABLE 2018 GENERATION OUTLOOK MARKET PRICES STABLE / BETTER PRODUCTION VOLUMES BETTER MSD & CAPACITY SLIGHTLY LOWER Comparisons vs E and 2018 (as implied in the business plan) 17

18 Annexes 18

19 9M CONSOLIDATED RESULTS P&L 9M 9M CHANGE % REVENUES 3,482 4, % EBITDA % Ordinary D&A (308) (309) % EPCG write-off - (60) -60 n.s. Provisions (40) (24) % EBIT % Net Financial Expenses (96) (121) % Associates & JV Result from non recurr. transactions % EBT % Taxes (145) (153) % Net result from discontinued operations Minorities (17) (1) % 19 GROUP NET INCOME %

20 3Q CONSOLIDATED RESULTS P&L 3Q 3Q CHANGE % REVENUES 1,159 1, % EBITDA % Ordinary D&A (110) (100) % Provisions (4) (13) -9 n.s. EBIT % Net Financial Expenses (33) (25) % EBT % Taxes (39) (34) % Net result from discontinued operations n.s. Minorities (4) n.s. GROUP NET INCOME

21 3Q CONSOLIDATED RESULTS GROUP EBITDA Q 3Q Non recurring items EPCG 3Q Generation Energy Ordinary & Trading Retail Waste Networks & District Heating Smart City Corporate 3Q Ordinary 3Q 3Q Non recurring items Generation: margin reduction due to San Filippo running as «Merchant» in Q3 and lower environmental markets, partially offset by good CCGT performance Networks & District Heating: Consul System consolidation (DH) and Water Cycle tariff increase 21

22 9M CONSOLIDATED RESULTS BALANCE SHEET Restated Tangible Assets 5, % 4, % Intangible Assets Shareholdings and Other Non Current Financial Assets Other Non Current Assets/Liabilities Deferred Tax Assets and Liabilities 1, (82) 341 1, % % (84) -2.4% % Provisions for Risks, Charges and Liabilities for landfills (671) (622) +7.3% Employee Benefits NET FIXED CAPITAL (365) 6,136 (331) +9.3% 5, % Inventories Trade receivables and other current Assets 159 2, % 1, % Trade payables and other current Liabilities (2,128) Current tax Assets/Liabilities WORKING CAPITAL AND OTHER CURRENT ASSETS/LIABILITIES Non current Assets /Liabilities held for sale (1,686) +20.7% % % 217 n.s. TOTAL CAPITAL EMPLOYED 6,415 6, % Equity 3,279 2, % Net Financial Position 3,136 3, % 22 TOTAL SOURCES 6,415 6, %

23 9M CONSOLIDATED RESULTS GROSS DEBT MATURITIES AS OF 30/09/ Beyond 2026 Bonds Loans 23

24 UPDATE 3R RELAUNCH 1st Plastic treatment plant (Cavaglià): civil works completed 2nd Plastic treatment plant (Muggiano): authorization obtained Electric primary station Benedetto Marcello fully operational Approval from the Local Authority of Aspem s proposal about new higher water services tariff REGENERATION Incorporation of A2A Rinnovabili (100% A2A S.p.A.) and purchase of 17MW of photovoltaic plants Flexibilitation of CCGT Sermide power plant concluded and continuous improvement on all the other CCGT plants District Heating grid heat reduction pilot project financed by the EU H2020 project TEMPO RESHAPE Public Lighting: Garbagnate tender won Mincio Trasmissione s asset sold to Terna Note: the projects are related to 3Q

25 UPDATE 3D DISCIPLINE, DIALOGUE & DIGITAL Two new District Heating Control Rooms implemented in Milan and Brescia N.106 schools in Brescia Municipality interconnected with A2A fiberoptic network and related services Agreement signed between LGH and Politecnico of Milan for the development of machine learning algorithm for customer satisfaction activities Work Force Management System (WFM) fully operational in BU Networks Started phase 3 of programme LiHS (Leadership in Health and Safety) and the development of a gamification app to promote the culture of safety Cross-service (gas, power) process integration: preliminary agreement signed by Labor Unions Started a pilot project on advanced water grid control and water smart meters in Brescia area Additional savings expected from En&A extension in LGH: detailed design of new initiatives for improvement has started Operational excellence program (Mistral) set up, first 35 key target processes identified; pilot initiatives and change management program launched ADDITIONAL A2A, ACSM-AGAM, ASPEM, AEVV and Lario Reti Holding deadline of MoU extended to the end of Final Agreement with International Player for Turn-Key supply of biodrying technology on the Spanish market Note: the projects are related to 3Q

26 Operational annexes 26

27 9M CONSOLIDATED RESULTS VOLUMES 9M 9M Δ vs Δ% vs Aug-Sep LGH 9M LGH 9M A2A+LGH 9M A2A+LGH Δ vs Δ% vs A2A Group Thermal production GWh % % of which CCGT production GWh % % Coal production GWh % % Oil production GWh % % A2A Group Hydro production GWh % % Wholesale electricity sales and Foreign Markets GWh % % Ipex sales (1) GWh % % Electricity sales GWh % % Gas sales Mmc % % Electricity distributed GWh % % Gas distributed Mmc % % Water distributed Mmc % % Heat volumes sales GWht % % Cogeneration electricity sales GWh % % Collected waste Kton % % Waste disposal Kton % % WTE and other plants electricity production GWh % % WTE and other plants heat production GWht % % EPCG Thermal production GWh % % EPCG Hydro production GWh % % EPCG electricity sales GWh % % (1) Net of intermediated Ipex volumes 27

28 9M CONSOLIDATED RESULTS ENERGY SCENARIO Average data 9M 9M D % vs Brent $/bbl 43,0 52,6 22% CO2 - EU ETS cost /Tonn 5,3 5,3-1% Green Certificates /MWh 66,4 0,0-100% /$ /$ 1,1 1,1 0% Brent /bbl 38,5 47,4 23% PSV(1) /MWh 14,6 18,8 29% AEEGSI Gas Tariff (2) c /mc 15,4 18,3 19% Coal (API2) /Tonn 45,9 73,2 59% PUN baseload(3) /MWh 38,3 51,3 34% PUN peak(3) /MWh 42,3 57,5 36% PUN off-peak(3) /MWh 36,2 47,8 32% CCGT gas cost(4) /MWh 35,1 44,3 26% Spark Spread CCGT_PSV vs Baseload /MWh 3,2 7,0 n.a. Spark Spread CCGT_PSV vs Peakload /MWh 7,2 13,2 83% Spark Spread CCGT_PSV vs Off-Peak /MWh 1,0 3,5 n.a. Clean Spark Spread vs Baseload /MWh 1,2 5,0 n.a. Clean Spark Spread vs Peakload /MWh 5,2 11,2 n.a. Clean Dark Spread vs Baseload(5) /MWh 6,3 9,1 44% (1) Gas at virtual trading point (2) Pfor 162/14 Oct 2014-Mar. (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 28

29 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 any shares 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 and expectations. 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 differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to changes in global economic business, changes in the price of certain commodities including electricity, gas and coal, the competitive market and regulatory factors. Moreover, forward-looking statements are current only at the date on which they are made. 29