THIRD QUARTER 2013 RESULTS
13 NOVEMBER 2013
LUCA BETTONTE, CEO
DISCLAIMER
This document contains certain forward-looking information that is subject
to a number of factors that may influ...
AGENDA
3Q 2013 Highlights
Key Figures
✓ Recent Developments
✓

Results Review
Business Environment
✓ 3Q 2013 Group EBITDA
...
HIGHLIGHTS: KEY FIGURES
RC Ebitda Adj (€mn)
437

RC Net Profit (€ mn)
36

330
275

POWER & GAS
RENEWABLES
REFINING & MARKET...
RECENT DEVELOPMENTS

•
Renewables •
•

Gebeleisis wind farm (70MW) in Romania consolidated as of July 1, 2013
On September...
RESULTS REVIEW
PAOLO MERLI
FINANCE DIRECTOR

6
BUSINESS ENVIRONMENT
Renewables: Electricity Prices (€/Mwh)

159

Electricity Prices (€/Mwh)
155

119

116

105

103

82
9...
3Q 2013 GROUP EBITDA

20

(11)
(1)

125

10

143

1,292

0
3Q 2012

Renewables

Power & Gas

Refining & Marketing

Corporat...
RENEWABLES RESULTS
RC Ebitda (€ mn)

Volumes (Gwh)
1,809

186

60
84
103

4
5
7

870

92
170

ERG Wind

ERG Wind

873

100...
POWER RESULTS
RC Ebitda (€ mn)

ISAB ENERGY
ERG POWER

239

Volumes (Gwh)

275
5,231 5,213
3,219
3,039

195
177

1,834

10...
MARKETING RESULTS
RC Ebitda (€ mn)

TOTALERG
EOS

Market Share (%)

44

42

11.2%

10.1%

31

39

1.0%

20

3Q 2012

0.8%
...
REFINING RESULTS: COASTAL AND INLAND

COASTAL REFINING
INLAND REFINING(1)
9M 2012

Volumes(2) (k tons)

RC Ebitda (€ mn)
9...
KEY FINANCIALS

13
PRO-FORMA REPLACEMENT COST P&L
9M 2013

9M 2012 Euro millions

3Q 2013

3Q 2012

437

330

RC Adjusted EBITDA

143

125

(...
ADJUSTED INVESTMENTS
162
15
POWER & GAS
RENEWABLES (1)
REFINING & MARKETING (2)
CORPORATE

(€ mn)

113
20
119(4)
54

60

(...
9M 2013 ADJUSTED CASH FLOW STATEMENT

63

(6)

(4)
1,799

1,565

(276)
1,510

800

722

44%
1,289

68
98
(373)

39%

64

1...
2013 GUIDANCE AND CONCLUSIONS
LUCA BETTONTE
CEO

17
2013 GUIDANCE AND CONCLUSIONS
>500

437

EBITDA:

✓Economic guidance confirmed after 9M results
0
9M 2013

P&G

2013 FCST

...
APPENDIX

19
9M 2013 GROUP EBITDA

36

(13)

(3)

86

330

437

1,292

0
9M 2012

Renewables

Power & Gas

Refining & Marketing

Corpora...
3Q 2013 ADJUSTED CASH FLOW STATEMENT

17

(6)

9

11

51
(121)

(276)

141
1,565

1,462
44%

1,462
1,289

43%

1,233

39%
...
3Q AND 9M 2013 RESULTS

9M 2013

9M 2012 Euro millions

Adjusted Revenues

3Q 2013

3Q 2012

2,762

3,184

7,525

9,811

4...
RENEWABLES: KEY FIGURES (1/2)
9M 2013

9M 2012

1,265

572

3Q 2013
Installed capacity (end-period, MW)

3Q 2012

1,265

5...
RENEWABLES: KEY FIGURES (2/2)
9M 2013

9M 2012 Euro millions

3Q 2013

3Q 2012

RC EBITDA:
170

94

Italy

31

25

7

n.a....
ISAB ENERGY: KEY FIGURES
9M 2013

9M 2012

3Q 2013

3Q 2012

3,219

3,039

Sales (Gwh)

1,109

1,061

481

468

Sales (€ m...
ERG POWER: KEY FIGURES

9M 2013

9M 2012 Euro millions

3Q 2013

3Q 2012

Electricity Production (GWh)

681

773

1,994

2...
INTEGRATED DOWNSTREAM: KEY
9M 2013

9M 2012 Euro millions

(1)
FIGURES

3Q 2013

3Q 2012

34

42

Adjusted RC EBITDA

23

...
COASTAL REFINING: KEY

9M 2013

9M 2012 Euro millions

(1)
FIGURES

3Q 2013

3Q 2012

25

86

Gross refining margin

13

41...
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ERG Third Quarter 2013 Results

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ERG Third Quarter 2013 Results

  1. 1. THIRD QUARTER 2013 RESULTS 13 NOVEMBER 2013 LUCA BETTONTE, CEO
  2. 2. DISCLAIMER This document contains certain forward-looking information that is subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. There can be non assurance that the projections or forecasts will ultimately prove to be accurate; accordingly, the Company makes no representation or warranty as to the accuracy of such information or the likelihood that the Company will perform as projected. 2
  3. 3. AGENDA 3Q 2013 Highlights Key Figures ✓ Recent Developments ✓ Results Review Business Environment ✓ 3Q 2013 Group EBITDA ✓ Results by Segments ✓ Key Financials Profit & Loss ✓ Investments ✓ Cash Flow Statement ✓ 2013 Guidance and Conclusions Appendix 3
  4. 4. HIGHLIGHTS: KEY FIGURES RC Ebitda Adj (€mn) 437 RC Net Profit (€ mn) 36 330 275 POWER & GAS RENEWABLES REFINING & MARKETING CORPORATE 239 125 186 100 80 10 (19) 26 (2) (22) 9M 2012 9M 2013 24 (5) 3Q 2012 143 12 100 11 3 36 13 (6) 0 0 9M 2012 9M 2013 3Q 2013 3Q 2012 3Q 2013 1,565 44% 722 638 (1) 1,398 NFP EXCL. DERIVATIVES DERIVATIVES 27% 84 31/12/2012 Leverage 167 30/09/2013 0 Strong Renewables and Power, weak R&M (1) Adjusted Net Financial Position does not include NFP of ISAB Srl 4 Highlights
  5. 5. RECENT DEVELOPMENTS • Renewables • • Gebeleisis wind farm (70MW) in Romania consolidated as of July 1, 2013 On September 5, 2013: closing for Hrabrovo wind farm (14MW) in Bulgaria (EV: €17.6mn) On October 31, 2013: closing for acquisition of ERG Wind O&M activities (EV: €10mn) Further step in geographical diversification and integration of O&M activities to manage wind farms • Refining • • On October 9, 2013 ERG approved the exercise of the PUT option on the remaining 20% of ISAB Refinery Asset value: €400mn excluding inventories Closing expected by end of 2013 Invested capital reallocated towards less volatile sectors with visible cash flows 5 Highlights
  6. 6. RESULTS REVIEW PAOLO MERLI FINANCE DIRECTOR 6
  7. 7. BUSINESS ENVIRONMENT Renewables: Electricity Prices (€/Mwh) 159 Electricity Prices (€/Mwh) 155 119 116 105 103 82 95 96 9596 94 90 89 4Q 2012 3Q 2012 FRANCE ITALY (1) 1Q 2013 BULGARIA 3Q 2013 2Q 2013 GERMANY ROMANIA(2) 66 3Q 2012 4Q 2012 ITALIAN PRICE Industry Retail Fuels Volumes (M tons) 1Q 2013 3Q 2013 2Q 2013 ZONAL PRICE SICILY CIP6 EMC Margin ($/bbl) 2.29 6.13 5.89 (3.45) 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 Italian price is theoretical price based on National Average Electricity Price (PUN) + GC (2) Price in Romania is based on ERG Renew average price which includes two GCs. Second GC will be cashed in from 2018 onwards (1) Results Review 7
  8. 8. 3Q 2013 GROUP EBITDA 20 (11) (1) 125 10 143 1,292 0 3Q 2012 Renewables Power & Gas Refining & Marketing Corporate 3Q 2013 Ebitda growth driven by Renewables and Power 8 Results Review
  9. 9. RENEWABLES RESULTS RC Ebitda (€ mn) Volumes (Gwh) 1,809 186 60 84 103 4 5 7 870 92 170 ERG Wind ERG Wind 873 100 0.6 9 5 85 1,561 409 779 94 0.6 1 26 25 9M 2012 36 1 2 2 31 9M 2013 3Q 2012 9 14 9M 2012 243 20 GERMANY ERG Wind 330 0 3Q 2012 3Q 2013 ERG Wind ITALY 170 23 211 9M 2013 32 27 FRANCE LUKERG(1) 0 3Q 2013 Strong growth driven by ERG Wind (1) LUKERG: ERG ‘s stake = 50% in Bulgaria and Romania 9 Results Review
  10. 10. POWER RESULTS RC Ebitda (€ mn) ISAB ENERGY ERG POWER 239 Volumes (Gwh) 275 5,231 5,213 3,219 3,039 195 177 1,834 100 80 63 80 64 2,192 1,994 73 1,061 773 9M 2012 16 681 0 3Q 2013 27 9M 2013 3Q 2012 1,109 9M 2013 3Q 2012 9M 2012 1,790 0 3Q 2013 Strong figures in Power 10 Results Review
  11. 11. MARKETING RESULTS RC Ebitda (€ mn) TOTALERG EOS Market Share (%) 44 42 11.2% 10.1% 31 39 1.0% 20 3Q 2012 0.8% 4Q 2012 1Q 2013 2Q 2013 3Q 2013 11 18 11 5 9M 2013 TOTALERG 8 3 9M 2012 EOS 3Q 2012 3 0 3Q 2013 Q3 improved despite a still tough environment 11 Results Review
  12. 12. REFINING RESULTS: COASTAL AND INLAND COASTAL REFINING INLAND REFINING(1) 9M 2012 Volumes(2) (k tons) RC Ebitda (€ mn) 9M 2013 3Q 2012 7,270 3Q 2013 13 3,801 5 9 0.3 3,469 2 (10) 0 (9) 9M 2012 2,677 1,668 1,009 9M 2013 (7) (32) 2,300 980 1,147 1,153 640 340 3Q 2012 0 3Q 2013 Margins ($/bbl) 4.14 (37) 3.00 2.29 1.82 0.52 (32) (3.45) (47) Worsened and negative Refining (1) (2) 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 EMC MARGIN COASTAL REFINING MARGIN INLAND REFINING MARGIN Inland Refining EBITDA includes Logistics Volumes relate to 100% of TOTALERG stake in Rome (100%) and Sarpom (24%) 12 Results Review
  13. 13. KEY FINANCIALS 13
  14. 14. PRO-FORMA REPLACEMENT COST P&L 9M 2013 9M 2012 Euro millions 3Q 2013 3Q 2012 437 330 RC Adjusted EBITDA 143 125 (215) (184) Amortization and depreciation (72) (61) 221 146 RC Adjusted EBIT 71 64 (64) (51) Net financial income (expenses) (17) (15) 4 (1) Net income (loss) from equity investments 1 (1) 161 94 RC Results before taxes 55 47 (82) (54) Income taxes (28) (22) 79 40 RC Results for the period 27 26 (43) (38) Minority interests (17) (14) 36 3 RC Net profit 11 12 Note: figures based on NO GAAP measures 14 Key Financials
  15. 15. ADJUSTED INVESTMENTS 162 15 POWER & GAS RENEWABLES (1) REFINING & MARKETING (2) CORPORATE (€ mn) 113 20 119(4) 54 60 (3) 5 29 38 0.7 9M 2012 27 1 9M 2013 0.2 9 7 13 3Q 2012 45 (5) 0.3 10 0 3Q 2013 Renewables adjusted for LUKERG Renew (50%). (2) R&M adjusted for TOTALERG (51%). It does not include ISAB Srl as of September 2012 (3) It includes investment for the acquisition of Tcherga (ca. €26mn) (4) It includes investment for the acquisition of Gebeleisis (ca. €55mn) and Hrabrovo (ca. €9mn) (5) It includes investment for the acquisition of Hrabrovo (ca. €9mn) (1) 15 Key Financials
  16. 16. 9M 2013 ADJUSTED CASH FLOW STATEMENT 63 (6) (4) 1,799 1,565 (276) 1,510 800 722 44% 1,289 68 98 (373) 39% 64 132 722 27% 0 Adj. Net Debt 31/12/2012 Cash Flow from operation Working Capital CAPEX Financial Charges Dividends ERG Wind Acquisition Gebeleisis & Eolo Hrabrovo Disposal Acquisition Taxes and Other NFP 51% Adj. Net TotalErg and Net Debt 30/09/2013 Debt 50% reported 30/09/2013 LUKERG Renew Leverage 16 Key Financials
  17. 17. 2013 GUIDANCE AND CONCLUSIONS LUCA BETTONTE CEO 17
  18. 18. 2013 GUIDANCE AND CONCLUSIONS >500 437 EBITDA: ✓Economic guidance confirmed after 9M results 0 9M 2013 P&G 2013 FCST RENEWABLES R&M CORPORATE ≈220 CAPEX: 162 ✓FY Capex guidance confirmed ✓For 3M focus will be in Renewables: advancement in Romania and in Palazzo San Gervasio wind farm construction 9M 2013(1) 2013 1,565 FCST(2) 0 ≈1,300 NFP: ✓Guidance confirmed 0 9M 2013 LIQUIDITY (1) It 2013 PF FCST(3) OTHER AT MLT Strong growth consistent with new business model does not include 20% ISAB investments (ca. €16mn); it includes €55mn for Gebeleisis in Romania, and €9mn for Hrabrovo in Bulgaria (2) It includes M&A investments in Renewables: €55mn for Gebeleisis in Romania, €9mn for Hrabrovo in Bulgaria and €10mn for ERG Wind O&M activities (3) It assumes closing of put on ISAB refinery within 31.12.2013 18
  19. 19. APPENDIX 19
  20. 20. 9M 2013 GROUP EBITDA 36 (13) (3) 86 330 437 1,292 0 9M 2012 Renewables Power & Gas Refining & Marketing Corporate 9M 2013 Ebitda growth driven by Renewables and improvement in R&M 20 Appendix
  21. 21. 3Q 2013 ADJUSTED CASH FLOW STATEMENT 17 (6) 9 11 51 (121) (276) 141 1,565 1,462 44% 1,462 1,289 43% 1,233 39% 0 Adj. Net Debt 30/06/2013 Cash Flow Working from operation Capital CAPEX Financial Charges Eolo Disposal Hrabrovo Acquisition Taxes and Other NFP 51% Adj. Net TotalErg and Net Debt 50% 30/09/2013 Debt reported 30/09/2013 LUKERG Renew Leverage 21 Appendix
  22. 22. 3Q AND 9M 2013 RESULTS 9M 2013 9M 2012 Euro millions Adjusted Revenues 3Q 2013 3Q 2012 2,762 3,184 7,525 9,811 437 330 RC EBITDA Adjusted 143 125 186 100 - Renewables 36 26 275 239 - Power & Gas 100 80 (2) 10 - Refining & Marketing 13 24 (22) (19) - Corporate (6) (5) 22 Appendix
  23. 23. RENEWABLES: KEY FIGURES (1/2) 9M 2013 9M 2012 1,265 572 3Q 2013 Installed capacity (end-period, MW) 3Q 2012 1,265 572 1,053 487 of which: 1,053 487 - Italy 86 n.a. - Germany 86 n.a. 64 64 - France 64 64 27 20 - Bulgaria (1) 27 20 35 n.a. - Romania (1) 35 n.a. 1,809 873 Electricity Production (GWh) 409 243 of which: 1,561 779 - Italy 330 211 103 n.a. - Germany 27 n.a. 84 85 - France 20 23 40 9 - Bulgaria (1) 12 9 21 n.a. - Romania (1) 21 n.a. (1) ERG ‘s stake = 50% 23 Appendix
  24. 24. RENEWABLES: KEY FIGURES (2/2) 9M 2013 9M 2012 Euro millions 3Q 2013 3Q 2012 RC EBITDA: 170 94 Italy 31 25 7 n.a. Germany 2 n.a. 5 5 France 1 1 4 1 LUKERG (1) 2 1 of which: 3 - Bulgaria (1) 1 1 1 n.a. - Romania (1) 1 n.a. 186 100 Total RC EBITDA 36 26 (94) (48) Depreciation (31) (17) 92 (1) 1 52 5 10 ERG ‘s stake = 50% RC EBIT 24 Appendix
  25. 25. ISAB ENERGY: KEY FIGURES 9M 2013 9M 2012 3Q 2013 3Q 2012 3,219 3,039 Sales (Gwh) 1,109 1,061 481 468 Sales (€ mn) 169 166 195 177 RC EBITDA (Eu mn) 73 64 158 140 RC EBIT (Eu mn) 61 52 92% 88% Net capacity utilization (%) 95% 91% 116 119 CIP6 tariffs (Eu/MWh) 116 119 128 106 EBITDA IT GAAP (Eu mn) 49 41 25 Appendix
  26. 26. ERG POWER: KEY FIGURES 9M 2013 9M 2012 Euro millions 3Q 2013 3Q 2012 Electricity Production (GWh) 681 773 1,994 2,192 80 63 RC EBITDA 27 16 (21) (20) Depreciation (7) (7) 59 43 RC EBIT 20 9 26 Appendix
  27. 27. INTEGRATED DOWNSTREAM: KEY 9M 2013 9M 2012 Euro millions (1) FIGURES 3Q 2013 3Q 2012 34 42 Adjusted RC EBITDA 23 19 44 42 - Marketing 20 10 (10) 0 - Inland refining and logistics 2 9 (44) (46) Adjusted Depreciation (15) (15) (10) (4) Adjusted RC EBIT 8 4 27 25 Investments 10 10 11.3% 10.9% TOTALERG retail market share(2) 11.2% 10.1% 0.9% 1.0% EOS retail market share 0.8% 1.0% Figures include 51% stake inTOTALERG and 100% EOS (2) Estimated market share referring to 100% of TOTALERG (1) 27 Appendix
  28. 28. COASTAL REFINING: KEY 9M 2013 9M 2012 Euro millions (1) FIGURES 3Q 2013 3Q 2012 25 86 Gross refining margin 13 41 (37) (32) Adjusted RC EBITDA (9) 5 (17) (32) Adjusted Depreciation (6) (10) (54) (64) Adjusted RC EBIT (15) (5) 0 14 0 3 Investments(2) Figures are adjusted for ERG’s stake in ISAB Srl (40% from January to August 2012, 20% afterwards) (2) Investments do not include 20% ISAB investments (1) 28 Appendix
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