snam 1q 2015 consolidated results
TRANSCRIPT
snam.it
1Q 2015 Consolidated Results
May 14th, 2015
Outline
2
Antonio Paccioretti
Chief Financial Officer
Carlo Malacarne
Chief Executive Officer
• Revenues 929 Up 2.4%
• Ebitda 717 Down 2.0%
• Net profit 325 Up 11.3%
[ € mn ]
Solid Results
Sound Growth &
Cash Flow
generation
Portfolio
management
• Capex 225
• Operating Cash Flow 653
• Net debt 13,217
• ACAM GAS acquisition completed on April 1st
1Q 2015 Highlights
[ € mn ]
3
Income Statement
4
[ € mn ] 1 Q 2014 1 Q 2015 Change
Revenues 907 929 +22
Operating expenses - 175 - 212 - 37
EBITDA 732 717 - 15
Depreciation & amortisation - 190 - 207 - 17
EBIT 542 510 - 32
Net interest income (expenses) - 101 - 95 +6
Net income from associates 22 41 +19
EBT 463 456 - 7
Income taxes - 171 - 131 +40
NET PROFIT 292 325 +33
Revenues
5
[ € mn ] 1 Q 2014 1 Q 2015 Change
Regulated revenues 882 898 +16
Transport 465 470 +5
Distribution 236 260 +24
Storage 142 123 -19
LNG 5 5
Pass-through revenues 34 40 +6
Other revenues 25 31 +6
TOTAL REVENUES 907 929 +22
Operating Expenses
6
[ € mn ] 1 Q 2014 1 Q 2015 Change
Regulated activities 172 189 +17
Controllable fixed costs 117 131 +14
Variable costs 4 4
Other costs 17 14 -3
Pass-through costs 34 40 +6
Non regulated activities 3 23 +20
TOTAL COSTS 175 212 +37
7
EBIT Analysis
[ € mn ]
-32 € mn
-5.9%
542510
10
(14)
(17)
(11)
300
400
500
600
EBIT1 Q 2014
Regulatedrevenues
Controllablefixed costs
Depreciation& amortisation
Other EBIT1 Q 2015
8
Net Profit Analysis
[ € mn ]
292325
619
40
(32)
0
50
100
150
200
250
300
350
Net profit1 Q 2014
EBIT Net interestincome
(expenses)
Net incomefrom associates
Incometaxes
Net profit1 Q 2015
+33 € mn
+11.3%
9
Financial structure as of March 31, 2015 Bond Maturity Profile as of March 31, 2015 1Q 2015 main actions
Bond issuances
• 8.2y fixed rate bond: €250 mn;
Institutional lenders financing:
• New EIB financing for €200 mn;
• Cancellation of relatively expensive EIB
financing for €300 mn;
Treasury management optimization
13.2
3.2
10.7
1.8
1.2
16.8
0
2
4
6
8
10
12
14
16
18
Net debt 1Q 2015
Total committed credit facilities and bonds
Pool banking facilities
Bilateral banking facilities
Debt capital market
Institutional lenders financing
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
€ bn € bn
Main Financial Actions and Results
10
Cash Flow from Operation and Net Investments
Net profit Change in working capital
325
Depreciation & other items
150
653
Cash flow from
operation
Net capex
4.5% stake reduction
in TIGF
-284
84
-200
Net investments
[ € mn ]
FREE CASH FLOW 1Q 2015 + €453 mn
Cash flow from operation
[ € mn ]
Net investments
178
Balance Sheet
11
[ € mn] Dec, 31
2014
Mar, 31
2015Change
Net invested capital 20,824 20,751 -73
Fixed capital 21,813 21,930 +117
Tangible fixed assets 15,335 15,472 +137
Intangible fixed assets 5,076 5,076 -
Equity-accounted and other investments 1,402 1,382 -20
Net working capital -864 -1,056 -192
Receivables 2,190 2,300 +110
Liabilities -3,054 -3,356 -302
Provisions for employee benefits -141 -139 +2
Assets held for sale and directly related liabilities 16 16 -
Net financial debt 13,652 13,217 -435
Shareholders' equity 7,172 7,534 +362
12
Q & A S e s s i o n
13
A n n e x e s
14.9 14.6
4.5 4.4
4.5 5.0
0.4 0.5
1Q 2014 1Q 2015
12.1 13.8
4.5
4.4
4.5
5.0 0.4
0.5
1Q 2014 1Q 2015
14
Residential
& commercial
Industrial(*)
Thermoelectric
Other Sectors
Gas consumption
+0.8% 24.5 24.3
Gas injected into the network
(*) Includes: NGV, Agriculture and Non-Energy Use
Source: National Transport Network Balance
Italian Gas Market in 1Q 2015
Weather adjusted
+10.5% 23.7
21.5
1Q 2014 1Q 2015
-1.9%
16.0 16.3
Operational Data
15
1Q 2014 1Q 2015 Δ %
Transport Gas injected into the network (bcm)
16.3
16.0 -1.9
Gas pipeline network (km in operation)
32,299
32,338 +0.1
Storage Storage capacity (bcm)
•Modulation (*)
•Strategic
15.9
11.4
4.5
15.9
11.4
4.5
-
-
-
Gas moved through storage system (bcm)
•Injection
•Withdrawal
4.84
0.08
4.76
7.16
0.01
7.15
+47.9
-87.5
+50.2
Distribution Gas distributed (bcm) 3.30 3.48 +5.6
Active Gas Metering at redelivery points (# mln)
5.92 6.41 +8.3
(*) Available capacity
16
Snam’s Chief Financial Officer, Antonio Paccioretti, 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.
Disclaimer
snam.it
1Q 2015 Consolidated Results
May 14th, 2015