- Snam reported an 8.1% increase in natural gas volumes transported in the first 9 months of 2017, with increases in both thermoelectric (+13.8%) and industrial (+7.6%) gas demand.
- Revenues increased 1.9% to €1,896 million due to higher gas volumes and a rise in the Regulated Asset Base (RAB). EBIT increased 3.3% to €1,063 million from efficiencies, a lower cost of debt, and higher income from associates.
- Net profit was solid at €755 million, up 18.2% compared to the same period in 2016, benefiting from significant cost of debt optimization and an increased contribution from
San Donato Milanese, 29 July 2015 – The Snam Board of Directors, chaired by Lorenzo Bini Smaghi, yesterday approved the consolidated half-year report to 30 June 2015 (subjected to a limited audit) and the consolidated results for the second quarter of 2015 (unaudited).
Financial highlights
Total revenue: €1,837 million (+3.1%)
EBITDA: €1,434 million (+0.4%)
Net profit: €612 million (+9.1%)
Technical investments: €487 million
Free cash flow: €587 million
Operating highlights
Gas injected into the transportation network: 32.77 billion cubic metres, in line with the figure for the first half of 2014
Number of active meters: 6.518 million (5.911 million at 30 June 2014)
Available storage capacity: 11.4 billion cubic metres (unchanged compared with 30 June 2014)
Significant events
Completed on 9 July 2015 the activities relating to the revocation of the judicial administration order imposed on the subsidiary Italgas by the Court of Palermo on 11 July 2014
Approved on 22 June 2015 by the Snam Board of Directors the renewal of the Euro Medium Term Notes (EMTN) programme for the issuance of bonds worth a total of €12 billion, unchanged from the previous renewal of the programme
San Donato Milanese, 29 July 2015 – The Snam Board of Directors, chaired by Lorenzo Bini Smaghi, yesterday approved the consolidated half-year report to 30 June 2015 (subjected to a limited audit) and the consolidated results for the second quarter of 2015 (unaudited).
Financial highlights
Total revenue: €1,837 million (+3.1%)
EBITDA: €1,434 million (+0.4%)
Net profit: €612 million (+9.1%)
Technical investments: €487 million
Free cash flow: €587 million
Operating highlights
Gas injected into the transportation network: 32.77 billion cubic metres, in line with the figure for the first half of 2014
Number of active meters: 6.518 million (5.911 million at 30 June 2014)
Available storage capacity: 11.4 billion cubic metres (unchanged compared with 30 June 2014)
Significant events
Completed on 9 July 2015 the activities relating to the revocation of the judicial administration order imposed on the subsidiary Italgas by the Court of Palermo on 11 July 2014
Approved on 22 June 2015 by the Snam Board of Directors the renewal of the Euro Medium Term Notes (EMTN) programme for the issuance of bonds worth a total of €12 billion, unchanged from the previous renewal of the programme
Snam’s Board of Directors, chaired by Carlo Malacarne, yesterday approved the consolidated half-year report at 30 June 2016 (subjected to a limited audit) and the consolidated results for the second quarter of 2016 (unaudited).
Operating highlights
New regulatory period with adjustments to WACC from 1 st January 2016
Gas injected into the transportation network: 34.07 billion cubic metres (+4.0%)
Number of active meters: 6.525 million (6.518 million at 30 June 2015)
Available storage capacity: 11.8 billion cubic metres (+0.4 billion cubic metres compared with 30 June 2015)
Financial highlights
Regulated revenue: €1,644 million 1 (-€78 million; -4.5%); reduction due to WACC adjustment
EBIT: €867 million (-14.3%)
Net profit: €526 million (-14.1%)
Technical investments: €526 million
Free cash flow: €508 million
Significant events
Separation of Italgas from Snam approved on 28 June 2016 by Snam Board of Directors. The closing of the entire transaction, which is subject to certain conditions precedent being met, will likely take effect by 31 December 2016
The Snam Board of Directors proposed a share buyback programme to the shareholders’ meeting called for 1 August 2016 for up to 3.5% of Snam’s share capital for a maximum amount of up to €500 million over 18 months
Snam’s Board of Directors, chaired by Carlo Malacarne, yesterday approved the consolidated half-year report at 30 June 2016 (subjected to a limited audit) and the consolidated results for the second quarter of 2016 (unaudited).
Operating highlights
New regulatory period with adjustments to WACC from 1 st January 2016
Gas injected into the transportation network: 34.07 billion cubic metres (+4.0%)
Number of active meters: 6.525 million (6.518 million at 30 June 2015)
Available storage capacity: 11.8 billion cubic metres (+0.4 billion cubic metres compared with 30 June 2015)
Financial highlights
Regulated revenue: €1,644 million 1 (-€78 million; -4.5%); reduction due to WACC adjustment
EBIT: €867 million (-14.3%)
Net profit: €526 million (-14.1%)
Technical investments: €526 million
Free cash flow: €508 million
Significant events
Separation of Italgas from Snam approved on 28 June 2016 by Snam Board of Directors. The closing of the entire transaction, which is subject to certain conditions precedent being met, will likely take effect by 31 December 2016
The Snam Board of Directors proposed a share buyback programme to the shareholders’ meeting called for 1 August 2016 for up to 3.5% of Snam’s share capital for a maximum amount of up to €500 million over 18 months
Solvay 9 months 2018 results - PresentationSolvay Group
Solvay published on November 8, 2018 its first nine months 2018 results. Earnings toolkit and press release are available here: https://www.solvay.com/en/event/nine-months-2018-earnings
Afrox 2017 Annual Results Presentation on 22 February 2018Simon Miller
During the year under review, Afrox increased revenue by 2.8% from improved volumes in the segments Atmospheric Gases and LPG and effective price cost recovery across all four segments.
We've delivered a strong financial performance in 2021, making significant progress on our new strategic plan.
#SGS #SGSGroup #WeAreSGS #FinancialResults
The Board of Directors of Snam, meeting today under the chairmanship of Carlo Malacarne, has approved the consolidated results for the first quarter of 2018 (unaudited).
We are very satisfied with the strong nine month and third quarter results. They show that we are delivering on the promises of our Ambition 2018 strategic plan. The combined ratio, margins in guaranteed life, return on equity and solvency all exceed our targets.
2. Highlights
Regulatory update Transition period regulation confirms stability of the framework
Confirmed mid-term shift towards output-based mechanisms
Up 8.1% to 52.3 bmc
Thermoelectric +13.8% & industrial +7.6%
Gas demand
€12m of savings delivered in first 9 months
FY target increased to above €15mEfficiency programme
Interest cost declined to 2.1% in the quarter, better than guidanceCost of debt
Net profit of €755mSolid 9M results
2
3. 3
9M 2017 consolidated results
Sept 2017 Net Debt € 11,156 m Positive working capital contribution
CAPEX € 683 m Up 15.0% on 9M 2016
Up 1.9% on 9M 2016
Positive contribution from higher natural gas volumes and RAB
increase
Revenues € 1,896 m
Up 3.3% on 9M 2016
Positive effects of the cost efficiency plan
EBIT € 1,063 m
Up 18.2% on 9M 2016
Efficiencies, lower cost of debt and higher income from
associates
Net Profit € 755 m
4. Adj. Pro-forma
EBIT
9M 2016
Regulated
revenues
Controllable
fixed costs
Depreciation &
Amortization
Other EBIT
9M 2017
2017 9M results: Ebit analysis
€ mn
1,029 1,063+34 +11 +13
Ebit benefited from RAB increase, higher volumes, efficiency plan and reduction in
non regulated costs
-24
Of which:
• € +25m structural effect for RAB increase
• € +11 m for higher gas volumes
Of which:
• € +7m lower capital losses
• € +9m 2016 One-off demerger costs
Of which:
• € +10m cost efficiency plan
• € +3m labour costs temporary reduction
• € - 6m emerging demerger costs
4
5. Cost efficiency plan
Efficiency plan ahead of schedule
Function
Savings
In 9M 2017
Main initiatives
OPERATIONS € c.4m
• Integration between storage and transport businesses
• Internal resource optimization
CORPORATE € c.8m
• Advertising and Events optimization
• Selective and reduction in external services
• Use of new smart technologies
• Savings and optimization mainly for O&M and ICT contracts
TOTAL € 12.1m
5
6. 2017 9M results: adjusted net profit analysis
Adj. Pro-forma Net
profit
9M 2016
EBIT Net Interest
Income
(expenses)
Net Income from
associates
Income taxes Net profit
9M 2017
639
755
+34
+42
+27
+13
Net income benefited from significant cost of debt optimization and increased contribution
from associates
€ mn
6
7. 0,92 0,92
1,22
0,33
1,44
1,23
0,78
0,50
1,25
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
11,2
3,2
8,6
0,6
1,5
13,9
Net Debt
3Q 2017
Total committed credit
facilities and bonds
Bond Maturity Profile (€ bn)
as of 30 September 2017
Snam debt structure
• 1.55 bn€ bond issuances at 30 Sep ‘17
• €1,150m plain vanilla bonds
• € 400m equity convertible
• New 20-years EIB financing for €310m
(fixed cost 1.5%)
• Continuous treasury optimization
• Average Cost of debt reduction
3Q2017: 2.1% vs. 2.4% FY 2016
• Fixed/variable rate debt: 78% / 22%
• M/L Term debt maturity: ~5.5 years
• S&P rating upgrade: BBB+
€ bn
Pool banking facilities
Bilateral banking facilities
Debt capital market (in
nominal terms)
Institutional lenders financing
Key Facts 9M17
Existing debt
as of 30 September 2017
3.8% 3.8%
2.1%
3.4%
2.8%
1.4%
2.2%
1.3%
0.9%
Weighted average
coupon (%)
7
8. 8
Liability Management overview
Timing
• Launch: 10 October 2017
• Announcement of the Results: 18 October 2017
• Settlement: 25 October 2017
Highlights
• €607m bonds buyback in nominal terms…
• Average residual maturity: ca. 4.4 years
• Average coupon ca. 2.5%
• …financed via
• the proceeds of the €650m 10Y Bond October 2027 -
1.375% coupon
Residual Amount
outstanding
Oct -17 New issuance Amount repurchased
Bond Maturity Profile at end-October 2017
0,92
0,82
1,13
0,30
1,39
0,90
0,76
0,50
1,25
0,65
0,10
0,08
0,03
0,05
0,33
0,01
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
M/L term debt maturity: +0.4 years€ bn in nominal terms
9. 2017 9M: cash flow and change in net debt
Positive impact from working capital phasing
9
10. 10
Update on Regulation
Transitory Period 2018 - 2019
TRANSPORT
& REGAS.
STORAGE
2016 2017 2018 2019 2020 20212014 2015
5th regulatory periodTransition period*4th regulatory period
4th regulatory period 5th regulatory period
WACC update
• Investments carried out in year t-1 will be included in the RAB (as expected and same as in the storage
business);
• WACC confirmed for 2018;
• Asset β confirmed for the transitory period;
• Input based incentive at 1% (transport) and 1,5% (regasification) for 12 years on development capex;
• Reference volume equal to 67.2 bcm;
*Resolution n. 575/2017/R/Gas, Resolution n. 653/2017/R/Gas
13. Update WACC parameters
13
WACC update
WACC parameters changing Today’s value
RF 0,5%
CRP 1%
Leverage 0,44
TAX 27,5%
Inflation 1,5%
2017 2018 2019 2020 2021
Transition period:
• T-1 Investments in RAB;
• WACC confirmed for 2018;
• Asset β confirmed
• Input based incentive at 1%
(transport) and 1,5%
(regasification) for 12 years on
development capex;
• Reference volume equal to 67.2
bcm;
5th regulatory period:
• Changes in business specific
parameters,
• Output based incentive
• eventually update of beta
parameter.
17. Balance Sheet
17
[ € mn ]
Dec, 31
2016
2017 9M Change
Net invested capital 17.553 17.496 -57
Fixed capital 18.080 18.400 +320
Tangible fixed assets 15.558 15.716 +158
Intangible fixed assets 810 807 -3
Financial receivables held for operating activities 213 338 +125
Equity-accounted and other investments 1.499 1.539 +40
Net working capital -483 -860 -377
Receivables 1.501 1.094 -407
Liabilities -1.984 -1.954 +30
Provisions for employee benefits -44 -44 -
Net financial debt 11.056 11.156 +100
Shareholders' equity 6.497 6.340 -157
18. Disclaimer
Franco Pruzzi, 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.
18