Analyst presentation business plan Hera 2014

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Analyst presentation business plan Hera 2014

  1. 1. 1
  2. 2. Index Hera Group Attachments Scenario 5 Time line 28 Key success factors 6 Risk analysis 29 Ebitda growth 7 Waste 30 Market positions 8 Energy 37 Growth drivers 9 Networks 44 Innovative approach 10 Breakdown by business 51 Resilient model & Industry scenario 11 Disclaimer 57 Business plan Strategic priorities 13 2014 targets 14 Market expansion 15 Efficiency gains 16 Asset base development 17 Strategy in Energy 18 Strategy in Waste 19 Strategy in Networks 20 Ebitda breakdown 21 Cash flows 22 Financial highlights 23 Closing remarks 25 2
  3. 3. Hera GroupMr. Tomaso Tommasi di Vignano 3
  4. 4. Hera GroupMr. Stefano Venier 4
  5. 5. Hera is strongly positioned to cope with the new scenario 1995-1999 120.0% 2000-2009 2010-2020 100.0% 80.0% 60.0% 40.0% 20.0% FTSE Mib 0.0% -20.0% -40.0% Transformation -60.0% 31/12/1997 Developm./consolidation Rationalisation 11/05/1998 11/09/1998 22/01/1999 31/05/1999 01/10/1999 08/02/2000 15/06/2000 19/10/2000 26/02/2001 04/07/2001 07/11/2001 19/03/2002 25/07/2002 28/11/2002 09/04/2003 20/08/2003 23/12/2003 04/05/2004 06/09/2004 11/01/2005 18/05/2005 20/09/2005 24/01/2006 01/06/2006 05/10/2006 12/02/2007 21/06/2007 25/10/2007 04/03/2008 10/07/2008 13/11/2008 26/03/2009 03/08/2009 04/12/2009 16/04/2010 Privatisation process Liberalisation Unbundling Regulation Authorities role Tenders for public services development Change of regulatory framework of public services Industry Introduction of IPO processes Business specific strategy international accounting Asset base development evolution Establishment of new expansion/renewal Portfolio rationalisation legal entities (Spa) M&A Financial rebalancing 5
  6. 6. Hera Group: leading multi-utility player in ItalyA decade of growth based on key strategic pillars Unique multi-utility business model Innovative approach in Leadership in multi-utility business core businesses Synergies and value opportunities Strong platform to pursue new opportunities 6
  7. 7. Unique multi-business model to underpin growthContinuous growth significantly improved results Ebitda Top Ebitda growth in Europe (m€) (2003-2009) 2003 2009 4% 0% 22% 26% 33% 243 567 17% 57% m€ 50% m€ 15% 17% 12% 13% Waste Energy Networks Other 10% 9% 9% 9% 8% 8% Net Invested capital (b€) +18% Cagr 0% 3.6 a A a n a F F l n l e ra er ol O e Ir e D A2 Ed En Ac tu E. dr G H na er Ib as G 1.3 Underpinned by 2.4 b€ capex 2003 2009 and acquisitions 7
  8. 8. Leadership in core businesses based on deep rooted local presence From a local player to a top ranked national player Top ranked in Italy in all businesses 2009 Data/ Cagr ’03-’09 5.1m ton of volume treated* (+13.5% Cagr) WASTE Market Leader Full range treatment capacity in 77 plants 1.1m gas (+7% Cagr) and 0.35m electricity (+37% Cagr) customers 4th in gas supply ENERGY 8th in electricity supply 2.2 bcm (+5% Cagr) and 7.0 TWh (+28% Cagr) volumes sold to end customer 57,000 km networks Dominant player NETWORK in reference territory 2.7m POD *of which 1.2m ton in third parties 8
  9. 9. Synergies and value opportunitiesBalanced contribution from all drivers Ebitda drivers Effective model to extract synergies (m€) 74m€ synergies (12m€ avg/Y) +132 567 Market expansion and tariff increase +66 +500k new customers +127 avg tariff increase (+ 4% Cagr ’03-’09 in water and waste) 243 Challenging new plants construction Expanding capacity confirming unique expertise in plant construction/mgmt 2003 Syn. & New plants M&A 2009 Org. G. M&A 15 deals for a total EV in excess of 1 b€ focused exclusively on core businesses 9
  10. 10. Innovative approach in doing the multi-utility businessStrategic steps to anticipate market trends Implementation of a business Multi-service/multi-regional player model focused on territorial presence 2003: 1.2m customers 2009: 1.8m customers Further evolving organisational/ business model Milan Milan Venice Venice Bologna Bologna Leading Sustainable approach to business (CSR): Rome Rome “we do better what is good” Multi-service offering Presence with dual offering 10
  11. 11. Resilient business model in recent economic environment Business environment Hera performance Domestic consumption: Sales volumes increase: 2009 / 2008 1H ’10 / 1H ’09 2009 / 2008 1H ’10 / 1H ’09 Electricity (6.7%) + 1.8% Electricity** + 38.9% + 16.3% Gas (8.0%) + 10.5% Gas** (1.0%) +4.6% Waste (2.6%) +8.1% Energy margins: Margins in Sales and Trading: 2009 / 2008 1H ’10 / 1H ’09 2009 / 2008 1H ’10 / 1H ’09 PUN (26.8%) (7.1%) Ebitda +12% +15% Spark Spread* (61.7%) (4.4%) **excluding trading activities *net of environment cost 2009 / 2008 1H ’10 / 1H ’09 EBITDA + 7.4% + 15.6% Dividends 8€c n.a. (stable) 11
  12. 12. Business plan to 2014 1995-1999 120.0% 2000-2009 2010-2020 100.0% 80.0% 60.0% 40.0% 20.0% FTSE Mib 0.0% -20.0% -40.0% Transformation -60.0% Developm./consolidation Rationalisation 31/12/1997 11/05/1998 11/09/1998 22/01/1999 31/05/1999 01/10/1999 08/02/2000 15/06/2000 19/10/2000 26/02/2001 04/07/2001 07/11/2001 19/03/2002 25/07/2002 28/11/2002 09/04/2003 20/08/2003 23/12/2003 04/05/2004 06/09/2004 11/01/2005 18/05/2005 20/09/2005 24/01/2006 01/06/2006 05/10/2006 12/02/2007 21/06/2007 25/10/2007 04/03/2008 10/07/2008 13/11/2008 26/03/2009 03/08/2009 04/12/2009 16/04/2010 Privatisation process Liberalisation Unbundling Regulation Authorities role Tenders for public services development Change of regulatory framework of public services Industry Introduction of IPO processes Business specific strategy international accounting Asset base development evolution Establishment of new expansion/renewal Portfolio rationalisation legal entities (Spa) M&A Financial rebalancing 12
  13. 13. Hera Group strategic priorities ’10-’14 Consistent multi-utility strategy leveraging upon key strengths Four strategic priorities Further expand downstream Further enhance efficiency to achieve 2m customers to increase operating result Focused strategy Selective investment to enhance profitability to complete asset base Targeting to increase returns and cash flows 13
  14. 14. 2014 Hera Group targets Ebitda Drivers (m€) Market expansion ● Efficiency gains in and tariffs increases 800 ● +40 750 network management in water and waste +73 +70 and commercial activities 567 600 430 Capex 400 320 (m€) ● Selective investment plan with appropriate flexibility 200 and expected returns 0 Initiatives to exploit waste energy content 2009 Org. G. Syn. New E14 and renewable sources plants Strengthening cash flows to support returns and flexible capital structure 14
  15. 15. Further expand downstream to achieve 2 million customers Multi-service customers base Evolution of Hera Energy contracts (m customers) (m contracts) 2.0 1.8 1.7 1.4 1.2 0.9 1.1 1.1 2004 2009 E2014 0.8 Avg n. of 2.4 0.6 2.0 0.3 contracts/ 0.1 customer 1.6 2004 2009 E2014 Electricity Gas Hera customer satisfaction indexes* Residential Business Hera commercial strategyE2014 > 70 E2014 > 70 Increase focus on Residential and SoHo 2009 69 2009 Further exploit opportunities in Marche, 65 Tuscany and Umbria 2006 67 2006 62 Focus on cross selling and customer loyalty * 60 corresponds to satisfied, 70 to delighted 15
  16. 16. Further enhance efficiency and increase operating result Average Cost per POD 45 m€ (€/POD) Efficiencies -2.5% Cagr (m€) Smart grid and metering 141.4 124.8 Workforce Management Remote control Support activities 2009 E2014 rationalisation 74.0 73.0 Average Cost to serve 14 m€ (€/contract) -3.6% Cagr Multi-utility approach 22 19 Sales channels tailored on clients’ segment On-line services and optimisation of E2010 E2014 customer operations Other initiatives 14 m€ Reduction of Urban Waste collection costs through operations rationalization 2004-2009 E2010-2014 Headcount rationalization in staff Specific projects to rationalize indirect costs (in sourcing optimisation) 16
  17. 17. Selective investments to complete asset base… fully exploiting competitive advantage Waste 546 m€ Hera ’10 – ’14 Capex: 1.7 b€ (m€) WTE Biomass Digestors 472 340 m€/ y on avg 430 428 15 351 9 312 229 10 Energy & Other 211 m€* 183 195 CCGT peak l. 35 • Complement power gen. mix 38 21 with “Tamarete” (peak load) 149 121 87 • Partnership in upstream gas 07 08 09 E10 E14 *of which 51 m€ for Other activities/Corporate Networks 2.4 943 m€ Asset base** (b€) 2.2 0.2 0.2 0.3 0.3 D.H. 58% development capex 0.8 0.9 • Mainten. 458 m€ E.E. Gas • Develop. 485 m€ 0.9 1.0 Water 2009 E2014 **Regulated Asset Base (RAB) for Gas & Water and Net invested capital for Electr. and D. Heat. 17
  18. 18. Focused strategy to enhance profitability (1/3) Key strategic actions 2014 Target • Reach 2m customers and 9 TWh electricity sales volume increase 2.2 bcm gas sales* • Leverage upon short upstream From 42% to 44% of position electricity provisioning from owned assets** Energy • Further diversify procurement From 38% to 58% of mix and trading opportunities Gas provisioning from international supplies Waste • Optimise cost to serve and 3.6% yearly decrease customer satisfaction in cost to serve CSI to 70 in all segments Networks Exploit flexible upstream and downstream potential* Excluding wholesale and power plants** Total power gen. 4.6 TWh of which 1.5 TWh from renewables and co-generation 18
  19. 19. Focused strategy to enhance profitability (2/3) Key strategic actions 2014 Target • Consolidate leadership also + 900 kton mgmt (4.8% Cagr) outside territory +1,200 kton treatment capacity • Extract cash flows Energy +6.9% Revenues (Cagr ’09-’14) -10.2% Capex (Cagr ’09-’14) • Increase energy/material 930 GWh of renewable recovery power generation; ~500 GWh of Green Certificates Waste • Enhance effectiveness in Sorted collection 54% and urban waste mgmt 20% Urban Waste to landfill Networks Exploit leadership to pursue market opportunities and cash flow generation* From third parties 19
  20. 20. Focused strategy to enhance profitability (3/3) Key strategic actions 2014 Target • Increase efficiency gains 2.5% yearly decrease in cost per POD Energy • Expand and enhance networks -120 bp leakage in Water nets -3.9% capex/POD (Cagr ’09-’14) • Pursue positive cash flows + 2.4% Cagr on water revenues per m3 Waste 0.9b€ Capex Networks Further expand presence in reference territory and potential opportunities to exploit asset (ie. Electricity) 20
  21. 21. Ebitda growth by strategic areasAll business areas contributing Ebitda (b€) +183 m€ 200 +58 21 +109 +15 22 188 296 2009 E2014 346 287 567m€ 750m€ 71 0 86 Waste Energy Networks Waste Energy Networks + 20 m€ tariffs (+3.1% Cagr) + 33 m€ tariffs + 3 m€ new plants + 37 m€ new plants + 25 m€ other org.g.& syn. + 12 m€ other org.g.& syn. + 52 m€ other org.g.& syn. 21
  22. 22. Cash flow development… all business areas in positive zone Waste Cash flows 2014 Cash flows (m€) 101 (b€) 2009 E2014 Cash flow/ton(€) 15.9 0.45 Energy Cash flows (0.31) (m€) 26 0.14 2009 E2014 Cash flow/customer(€) 15.4 Networks Cash flows Operating Capex & Inv. Free Cash (m€) Cash flows flows 15 E2014 Appropriate free cash flows to 2009 E2014 guarantee shareholder’s return Cash flow/POD(€) 5.3 22
  23. 23. Targeting enhanced returns and flexible financial structureBenefitting from Ebitda growth and bottom line enhancement Return on Net invested capital (ROI) Enhanced financial flexibility (%) > 10% 8,1% FFO/Debt ~ 20% 15% 2009 E2014 0% NIC* 3.6 3.9 (b€) 2009 E2014 Debt/Ebitda Return on Equity (ROE) (b€) > 9% 5% 3,3x < 2,8x 2,0 2009 E2014 2009 E2014 *Net invested capital = fixed assets + working capital - provisions 23
  24. 24. Hera GroupMr. Tomaso Tommasi di Vignano 24
  25. 25. Closing remarks (1/2) Hera ready to tackle with the current scenario and the forthcoming developments… Accomplished With Herambiente Networks acquisition Energy position execution in the and efficiency enhance- and downstream front position to ment allow to properly presence to exploit lead Italian Waste address challenges/ opportunities sector development opportunities from tenders 25
  26. 26. Closing remarks (2/2) …with increasing profitability and enhancing financial strengths 750 m€ EBITDA (+ 183 m€) with marginal risks 340 m€/year of Capex down 120 m€/year vs 2005-2009, 55% on regulated activities Free Cash Flow of all businesses in “positive” zone Net Debt/EBITDA to <3 by 2013 26
  27. 27. Q&A Session 27
  28. 28. Years of intense activities Consistent pattern to strengthen positioning in all businesses 2003 2004 2005 2006 2007 2008 2009 2010 WTE BO WTE FE WTE FC WTE MO WTE RN Start up Start up Start up Start up Start up Ecologia Herambiente Herambiente WASTE Acquisition Spin-off Partnership First Bio-energy plant with Eiser Start up First 3 acquisition: CCGT Cogen. 80 MW 100MW international Tecnometano 400MW Start up CCGT import of gas Argile gas (JV) Start up (JV) Start upENERGY from VNG SGR (20%) CCGT Megas Trade Aspes gas Flamenergy (JV) 800MW Acquisition Acquisition VNG-Hera (JV) Start up Italgestioni Tecnometano Elect. network Gas & District disposal acquisition MO province Heating acquisition NetworksNETWORK Acquisition Geat dist. acquisition Agea (FE) Meta (MO) Aspes-Megas Aimag Merger Merger Merger AcquisitionGROUP (25%) SAT Merger 28
  29. 29. Risk exposure of economic targets Risk factors Impacts Mitigating 2010-2014 factored in factors • Downstream • Churn gas > 4% • Loyal customer competition • Churn E.E. > 10% base Energy • Squeeze of margins • Margins gas • Upstream (8/10%) balancing/flexibility • Green Certificates • 83 €cent/MWh • Low exposure (-10% GC price = -0.6% ’14 Group Ebitda) Waste • Waste collection • n.a. • Dominant player in tenders (post ‘13) ref. territory • Authorization risk • n.a. • Bologna WTE is the only exposed • Gas tenders/ new • -8% tariffs impact • Asset ownership tariff period (’11-’14) • Water tenders (post • n.a. • Shareholder’s Networks 06/’13) decision • Regulatory risk • n.a. …still retaining some Capex flexibility (~10%) 29
  30. 30. 30
  31. 31. WASTE: overviewShort market with an unsatisfied demand Special Waste Production* (m tons) +2.3% Cagr Shortage in treatment capacity 82 56 (8% WTE treatment in Italy vs 20% UE) 2000 2006 Increase in control/regulation National player ranking (m tons) 5,1 2,9 1,1 1,0 1,0 Fragmented market Hera A2A Veolia Italia Green Iren Holding Mkt 6.1% 3.5% 1.3% 1.2% 1.2% share % *2008 data; special waste do not include C&D 31
  32. 32. Hera growth strategyFocus on deploying key competitive advantages Hera Strategy Key Success Factors Consolidate leadership Hera Distinctive Features Economies of scale also outside territory Market leadership Integrated solution providing (full service) Extract cash flows Fully comprehensive business coverage Asset management expertise Increase energy/ material recovery Unique expertise Relationship with Authorities Strong corporate image Enhance effectiveness Qualification/reliability in Urban Waste mgmt 32
  33. 33. Consolidation of leadershipExploiting strong asset base to expand market share Focus on value Expand geographical Increase “full service” added treatments scope customer base Hera sales volumes (kton) +4.8% Cagr 4,212 Leverage upon domestic plant shortage 3,325 Identified key target areas/regions/segments 2,350 Developed competitive commercial offers (full + 9% Cagr service) 1,531 Special w. Physiological market growth Urban w. Manage volume growth with efficient treatments 1,794 + 1% Cagr 1,862 (urban w. landfill treatments down to 20%) Increase sorted collection from 45% to 54% 2009 E2014 33
  34. 34. Expand asset baseFully integrate asset base across value chain Hera treatment capacity Develop and fully exploit existing WTE capacity (kton) Modena Rimini Modena Bologna TOTAL (revamp) • 50 MW • 310 GWhe + 1,223 Kton Potential new initiatives outside territory not accounted 66 6,338 1.7 300 1.5 273 186 Landfill development5,115 398 1.1 1.3 Authorised extensions Special 5,069 of existing landfills for Urban 77% 80% special waste 0.4 0.3 3,912 2009 E2014 1,203 23% 20% 1,269 New frontier: Biogas/mass project 2009 WTE La ndfil l s Compos t Other Third E2014 a nd Chi ‐fi Hera pa rti es • 140 Kton • 215 Kton pla nts pl a nts Biomass • 12.7 MW Digestors • 8 MW (JV) Hera plants Third parties • 45 GWhe • 89 GWhe Leadership linked to the integration of asset base development and to expansion opportunities, partly outside reference territories 34
  35. 35. Increase energy production awarded with incentivesDiversified renewable incentive schemes underpinning results Renewable power generation Green certificate incentives to waste (GWh) G.C. revenues (m€) + 443 931 40 488 71 14 413 2009 E2014 2009 E2014 WTE Landfills Digestors Biomass GC quantity 158 482 (GWh) + 89 +443 + 43 GC price 88.5 83.7 + 53 (€/MWh) + 258 Complement Green Certificates with special tariffs schemes (i.e. 280 €/MWh for energy WTE Landfills Digestors Biomass Total produced by biogas plants) plants 35
  36. 36. Growing cash flow despite increasing CapexFull contribution from all new and started up plants ’10-’14 Ebitda growth Cash Flow significant progression (m€) (m€) +9.6% Cagr 296 101 187 2009 E2014 ROI 9.2% 13.6% 2009 E2014 ’10-’14 Capex plan* (m€) 109 102 70 Development Cash Flow/ ton 15.9 (€) 40 Maintenance Avg capex 04-09 Avg capex 10-14 *Including a portion of Hera Indirect Capex 36
  37. 37. 37
  38. 38. Hera strategy leverage upon flexible procurement mixLeverage upon unique and effective position to expand markets Key Success Factors Hera Distinctive Features Leverage on short Sizeable and effective in Flexible procurement upstream position client management mix Further diversify Effective mix of assets Market size procurement mix and trading operations Know how in trading/ Effective commercial procurement and asset capabilities management Reach 2 m customers Efficient production and Strong and qualified commercial operations Optimize cost to image serve Loyal customer base 38
  39. 39. Keeping a balanced and effective upstream strategy (1/2)Unique flexible upstream profile is the key competitive advantage Evolution of Hera Electricity provisioning mix to serve final clients (TWh) 8.6 7.0 4.9 Exploit trading and procurement capabilities Market 57% 4.1 58% • Reach flexibility with current asset base Hera • Identify opportunities on new leading edge assets projects in the M/L term 42% 3.7 44% 3.0 2009 E2014 39
  40. 40. Keeping a balanced and effective upstream strategy (2/2)Further diversify gas low risk profile procurement Evolution of Hera gas provisioning mix* to serve final clients (bcm) 2.2 2,2 Exploit market position Consolidate relationship with key player Domestic 1.0 42% supply 1.4 62% Exploit short term opportunities Int.l supply 1.2 58% 0.8 38% Leverage on procurement trading capabilities Exploit capacity available on international pipelines 2009 E2014 Expand trading strengths Identify infrastructure opportunities * Procurement breakdown has been calculated on the overall gas sales 40
  41. 41. Hera will defend gas positioning and expand electricityKeep on expanding customer base leveraging upon key commercial strengths Hera commercial strategy Evolution of Hera Energy clients (m clients) Keep in focusing on residential and SoHo 1.7 1.4 Further penetrate surrounding Regions 1.1 0.9 Keep on leveraging on “salvaguardia” 1.1 customer base (Tuscany and Umbria) 0.8 0.6 Focus on cross selling through a 0.3 multiservice offer 0.1 2004 2009 E2014 Provide key industrial clients trigen Electricity Gas solutions 41
  42. 42. Enhancing commercial efficiencyEnhance loyalty and efficiency Hera customer satisfaction Indexes Hera efficiency: Cost to serve (60 correspond to satisfied, 70 to delighted) (€/contract) -3.6% Cagr Residential Business 22 19E2014 > 70 E2014 > 70 2009 69 2009 65 2006 67 2006 62 E2010 E2014 Multi-utility approach to exploit Hera effectiveness drivers economies of scale Implement innovative CRM practices Sales channels tailored on clients’ segment Leverage upon direct contact points to Online services and electronic enhance customer satisfaction invoices Optimisation of customer operations 42
  43. 43. Unique upstream position yields growing cash generationGrowing results and decreasing capex turn cash flow to positive Ebitda growth Cash Flow (m€) +4.0 % Cagr (m€) 86 71 53 26 2004 2009 E2014 Capex (m€) 35 21 2009 E2014 Cash Flow 15 per customer (€) 2009 E2014 43
  44. 44. 44
  45. 45. Hera StrategyContinue efficiency improvements to strengthen presidium of reference territory Key Success Factors Hera Distinctive Features Increase efficiency gains Almost fully coverage in Efficient cost structure contiguous areas Continuity of served areas Constant improvement of Relationship with Expand and enhance efficiency networks Authorities Positive relationship with Ownership of assets Authorities Pursue positive cash Outstanding service flows quality 45
  46. 46. Regulated tariffsVisible and safe growth perspectives Avg. revenue per m3 of water distributed (€/m3) +2.4 % Cagr 1.79 1.59 +2.6% cagr (agreed water tariff up to ’12) 2009 E2014 Total gas revenues (m€) +1.1 % Cagr 164 156 RAB upgrade (from 800 m€ in 2009 to 900 m€ in 2014) 2009 E2014 Total electricity revenues (m€) +0.8% Cagr 50.8 48.3 1.7% cagr volume increase 2009 E2014 46
  47. 47. Efficiency gains in cost managementEconomies of scale deployed in networks management and control Cost per POD in water Average Cost per POD (€/POD) -2.2 % Cagr (€/POD) -2.5 % Cagr Cost per POD in gas (€/POD) -1.7 % Cagr Cost per POD in electricity smart metering and smart grid (€/POD) -5.4 % Cagr workforce management network remote control network layout optimization 47
  48. 48. Heating production as a source of additional profitabilityBenefitting from new asset base developed to enhance profitability Hera heating production sources Hera heating production sources (GWht) +5.5 % Cagr 746 Increase volume sold to new customers (new urbanization) 22% 570 11% 492 Efficient 13% thermal energy 21% Efficient sources for heat production 296 production 14% 14% 14% 9% Waste contribution to increase heat gen. 48% 34% Increase of margins/environmental performances 2009 E2014 Gas boilers Geotherm. Co-gen. WTE Hera CCGT 48
  49. 49. Gas distribution tenders in 2011Win upcoming tenders completing reference territorial coverage Incumbent in reference territories Hera key strengths to win tenders (% of customers) 55% Incumbent in reference territories Ferrara 4th national player Modena Continuity in territory served Bologna Ravenna 80% 16% Remote control of networks 71% Forlì-Cesena 98% Rimini Quality of service Marche 83% Multiservizi Average local Market Share 64%* Other main players: Potentials to win tenders inside the SGR 12% E.On 4% reference territory and in surroundings Aimag 9% Edison 3% *% on total Municipalities 49
  50. 50. Strong profitability increaseCapital discipline and efficiency gains turn cash flows to positive Ebitda Capex (m€) +3.7 % Cagr (m€) 229 195 346 288 2009 E2014 2009 E2014 Ebitda Capex (€/POD) 109.2 126.4 86.9 71.1 (€/POD) Cash Flow RAB/ NIC* (m€) 15 (b€) 2009 E2014 Cash Flow/POD 5.3 (€) *Regulated Asset Base for Gas & Water; Net Invested Capital (Fixed Asset, Working Capital less provisions) for E.E. & D.H 50
  51. 51. Breakdown by business 51
  52. 52. Waste businessEconomics Capex ’10-’14: 546 m€ (m€) 598.5 545.9 M€ C2009 E2014 Cagr. Revenues 642.4 896.3 +6.9% 347.7 Operat. costs (327.3) (441.0) +6.1% Development Personnel (142.4) (159.3) +2.3% Maintenance Capitaliz. 14.5 0.4 (52.1%) 198.2 Ebitda 187.3 296.4 +9.6% 05-09 E 10-14Ebitda breakdown Highlights(m€) 296.4 2009 E2014 187.3 Tariffs (€/ton) 219.5 255.3 154.3 Volume treated Urban (kton) 1,794 1,862 Special (kton) 1,531 2,350 33.0 Hera prod. (kton) 1,790 2,127 C2009 E2010 E2011 E2012 E2013 E2014 Collection Treatment & Disposal 52
  53. 53. Water businessEconomics Capex ’10-’14: 522 m€ (m€) 527.3 521.9M€ 2009 E2014 Cagr.Revenues 471.4 530.3 +2.4% 256.6Operat. costs (264.5) (287.4) +1.7% DevelopmentPersonnel (104.7) (113.1) +1.6% MaintenanceCapitaliz. 29.3 39.9 +6.4% 265.3Ebitda 131.4 169.7 +5.2% 05-09 E 10-14Volume sold & n. of contracts Highlights 2009 E2014 2009 E2014 Volumes (mm3) 257 259 Leakage 25.9% 24.7% Contracts (m) 1.17 1.20 RAB (b€) 0.9 1.0 Tariff (€/m3) 1.6 1.8 53

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