lugano small & mid cap investor day - IR Top

LUGANO SMALL & MID CAPINVESTOR DAYIV EdizioneHotel Splendide Royal20 settembre 2013Energy and Environment: the Strength of a GroupKINEXIACOMPANY PRESENTATIONLugano Small & Mid Cap Investor DayKinexia – Company Presentation Lugano Small & Mid Cap Investor Dayth

AGENDA1. Overview2. Core Business and Financials – Kinexia Group3. Business Plan 2013-2015 – Kinexia Group4. SMART ProjectKinexia – Company Presentation Lugano Small & Mid Cap Investor Day2

OVERVIEW: COMPANY ORGANISATIONSostenyaWaste ItaliaPartecipazioni S.r.l. 60%KM Verde100%ProductionEPC & O&MEnergyEfficiency &ServicesKinexiaDistrict heatingEnvironmentGMC3,6%Waste ItaliaHoldingS.p.A.63,7%WasteItalia ZeroS.r.l. 32,7%Volteo EnergieS.p.A. 100%Innovatec100%SEI EnergiaS.p.A. 74,77%Ecoema100%Waste ItaliaS.p.A.100%EcoaddaS.r.l. 76%SMCS.p.A.65%Atria Solar S.r.l.100%Soc. Agricola100%InnovatecEnergy 84,7%Stea 51%Nove S.p.A.49%ASGA 49%Faeco S.p.A.100%AliceAmbienteS.r.l..100%VerdeImagnaS.r.l..100%45%Sun SystemGroup 84,4%10%Roof Garden55%Kinexia – Company Presentation Lugano Small & Mid Cap Investor Day3

AGENDA1. Overview2. Core Business and Financials – Kinexia Group3. Business Plan 2013 – 2015 – Kinexia Group4. SMART ProjectKinexia – Company Presentation Lugano Small & Mid Cap Investor Day4

SOSTENYA GROUP: CORE BUSINESSCORE BUSINESS: SOSTENYA GROUPA diversified Group in the Renewable Energy and Environmental SectorsKINEXIA S.p.A.WASTE ITALIA S.p.A.RENEWABLE ENERGYENVIRONMENTDISTRICT HEATINGNON HAZARDOUS WASTEENVIRONMENTAL SERVICESStrong expertise in the renewables and 30 years in waste and environmental businesses2012 KEY FIGURES (mn€) 2012VALUE OF PRODUCTION 145EBITDA 41* Before goodwill amortisations and depreciationsPRE - TAX RESULTS 4*Kinexia – Company Presentation Lugano Small & Mid Cap Investor Day 5

KINEXIA GROUP: CORE BUSINESSKINEXIA S.p.A.RENEWABLESENVIRONMENTDISTRICT HEATINGPRODUCTION EPC and O&M PV RETAILDEVELOPMENT –PV, WIND,BIOMASS,BIOENERGYECOEMA S.r.l..SEI ENERGIA S.p.A.AchievementsKinexia is a holdingcompany operating in therenewable energy andenvironmental sector.Kinexia fosters thedevelopment oftechnological solutionsintegrating the productionof energy from renewablesources andenvironmental services.46Mw PVPlantsBuilt andactivated6MWOperatingBIOGASPlantsEnergyproduction19,4MWeand100MWthElectricaland heatpowerinstalledcapacity7MWBIO-EnergyPlants builtandactivatedproducingenergy in20132mn tonscapacity“Fluff”landfillplant(December2012)Acquisitionof FAECOS.p.A.(end 2012)owner of alandfill witha capacityof 3,1mntonsSmartProjectInnovatecSunsystemExaltoSteaGroup ofCompaniesKinexia – Company Presentation Lugano Small & Mid Cap Investor Day6

KINEXIA GROUP: 2012 FINANCIALS2012 2011 ChangeValue of Production 62.2 89.0 -30%EBITDA 8.8 15.6 -43%Net Profit 0.7 (2.8) >100%.Net Financial Debt (65.6) (56.1) -17%Net Invested Capital 120.6 112.7 7%VALUE OF PRODUCTION €Decrease of renewable construction sector due to Italian regulation uncertainties in the periodas well as the worsening of the general macroeconomic and credit conditions, partially offset bya continuous improvement of district heating business.Net profit at €0.7mn benefits the sale of 15MWp PV plants to Antin.Focus in the environmental sector as stated in the new BP 2013-2015: Kinexia acquired inDecember 2012 Faeco S.p.A. for €26.2mn (Car fluff and special waste landfill) of which €10.8mnpayables in 2013-2017.Debt increase mainly due to new built in-house 7MW biogas plants project financing and Faecoacquisition partially offset by the ‘Antin deal’ benefits.VALUE OF PRODUCTION BREAKDOWN %EBITDA €District Heating38%2012RenewablesProduction6%RenewablesEPC56%Kinexia – Company Presentation Lugano Small & Mid Cap Investor Day7

KINEXIA GOURP: 1 HALF 2013 FINANCIALS1H13 1H12 ChangeValue of Production 37.3 24.9 50%EBITDA 9.7 5.8 67%EBIT 4.8 3.4 39%.1H13 2012 ChangeNet Financial Debt (95.4) (65.6) 46%Net Invested Capital 152.7 120.6 27%50% increase of Value of Production, 67% increase in EBITDA and EBIT up to 37% due to thebenefit from new Environment business in conjunction with the strategic repositioning operatedby Kinexia to other renewable sources, compared to photovoltaics, such as agriculture andbiogas from landfills, as well as the ongoing consolidation of the positive results generated by thedistrict heating sector. Even the EBITDA margin is increasing and stands at 26% compared to 23%in the same period of last year.Net debt at 30 June 2013 increased as well as Net Capital Invested mainly following theinvestments attributable to the seven plants of bioenergy fully funded through project financingby financial institutions45.00040.00035.00030.00025.00020.00015.00010.0005.0000VALUE OF PRODUCTION €41.10037.30024.9001H11 1H12 1H13VALUE OF PRODUCTION BREAKDOWN %14.00012.00010.0008.0006.0004.00011.600EBITDA €5.8009.700Environment21 %RenewablesEPC23%1H13District Heating38%2.00001H11 1H12 1H13RenewablesProduction18%Kinexia – Company Presentation Lugano Small & Mid Cap Investor Day8

AGENDA1. Overview2. Core Business and Financials – Kinexia Group3. Business Plan 2013 – 2015 – Kinexia Group4. SMART ProjectKinexia – Company Presentation Lugano Small & Mid Cap Investor Day9

KINEXIA GROUP: BUSINESS PLAN 2013-2015 - PLAN KEY STRATEGIC GUIDELINESKinexia – Company Presentation Lugano Small & Mid Cap Investor Day 10

KINEXIA GROUP: BUSINESS PLAN 2013-2015 - NUMBERS2011-2015 PFN/Equity and PFN/EBITDA EvolutionKinexia – Company Presentation Lugano Small & Mid Cap Investor Day 11

AGENDA1. Overview2. Core Business and Financials – Kinexia Group3. Business Plan 2013 – 2015 – Kinexia Group4. SMART ProjectKinexia – Company Presentation Lugano Small & Mid Cap Investor Day12

SMART PROJECTEfficienza energetica, buildingautomation, renewable systemsOperations & maintenance, assetmanagementEfficienza Energetica, renewablesystemsEfficienza Energetica, renewablesystemsSoluzioni per l’efficienzaenergetica, progettazione eistallazione di impiantitelecontrollo, manutenzionee altri servizi post-vendita.Studio, progettazione,esecuzione e manutenzione disoluzioni tecnologicheinnovative per la domotica el’efficienza energetica.Servizi di ingegneria, dicommercializzazione e diinstallazione di sistemi solarifotovoltaici, solari termici,pompe di calore, pavimentiradianti e domotica.Fornitore unico di impiantifotovoltaici e servizi per la rete infranchising di Eni (Energy StoreEni) attiva nellacommercializzazione di impianti,soluzioni e strumenti anchetramite piattaforme web per lagestione dei processi,monitoraggio e controllo, voltialla produzione di energia da fontirinnovabili ad uso domestico84,7% 71%51% 57%*conferimentoPROGETTO SMARTtecnologia, prodotti e servizi di Smart Grid, Smart City e Smart Home per la clientela corporate e retail, tecnologie e attività di ricerca e svilupponell’ambito della generazione distribuita, dell’efficienza energetica e dello storage di energia* Incl. la partecipazione del 10% di Sun System in Roof Garden S.r.l.Kinexia – Company Presentation Lugano Small & Mid Cap Investor Day

SMART PROJECT: LA TERZA RIVOLUZIONE INDUSTRIALEEnergia RinnovabileComunicazione InternetComunicazione tra i vari player come produttore econsumatore di energia, connessione informatica tra i vari«devices», uso intelligente delle informazioni disponibili ininternet come previsioni del tempo o il valore dell’energiadalle Borse energetiche, trading di energia tra produttoriclassici (centrali) e produttori retail,Internetof thingsRete infoenergetica“Today, Internet communication technology isconverging with renewable energies, giving riseto a Third Industrial Revolution. The creation ofa renewable energy regime, loaded by buildings,distributed via an energy internet—a smartintergrid—and connected to plug in zeroemission transport, opens the door to a ThirdIndustrial Revolution. The entire system isinteractive, integrated and seamless. Thisinterconnectedness is creating whole newopportunities for cross-industry relationships.The Third Industrial Revolution brings with it anew era of “distributed capitalism” in whichmillions of existing and new businesses andhomeowners become energy players. In theprocess, it will create millions of green jobs,jump start a new technology revolution, anddramatically increase productivity, as well asmitigate climate change” Jeremy Rifkin, TheThird Industrial Revolution, 2011Kinexia – Company Presentation Lugano Small & Mid Cap Investor Day

SMART PROJECT: REXKinexia – Company Presentation Lugano Small & Mid Cap Investor Day

SMART PROJECT: REXKinexia – Company Presentation Lugano Small & Mid Cap Investor Day

Assets in houseIntegratedenergymanagementSMART PROJECT: FIRST MOVER - ASSETS IN HOUSELA BUSINESS COMBINATION CREA UN SOGGETTO NUOVO AL QUALE LE SINGOLE ENTITA’ APPORTANO KNOW-HOW E FORZACOMMERCIALE COMPLEMENTARI• Sistema di controllo remoto (REX) monitoraggio al 100%dell’energia come produzione e consumo della casa o delbuilding. Il sistema trasmette e riceve informazioni grazie allatecnologia PLC (power line communication)• Charge Controller Storage system per energia rinnovabileconnesso al web sviluppato in collaborazione con AROS(Gruppo Riello) e BYD (leader mondiale in storage systems)che integra algoritmi per l’uso delle informazioni chearrivano tramite web (p.e. previsioni del tempo)• Know how nella progettazione e installazione di impianti dienergia rinnovabile (più di 4.000 impianti installati traSunsystem, Roofgarden e Stea)• Know How in Domotica ed efficienza energetica («vecchia»Innovatec)• IT: web based community contratto in esclusiva consoftware house, piattaforma su cui vengono condivise varieinformazione tra produttori e consumatori di energia (p.e.energy behaviour)• Roof Garden (JV con ENI), fornitore unico di impiantifotovoltaici e servizi per la rete in franchising di Eni (EnergyStore Eni)• Agreement commerciale con Officinae Verdi Officinae Verdi-joint-venture tra UniCredit e WWF – che ha come obiettivoun diverso modello energetico basato sul risparmio,sull’efficienza energetica e sulle rinnovabili• Sales Force 30 agenti con esperienza pluriennale nelmercato italianoSMARTFirst mover con un approccio multitecnologicoper la creazione di unapiattaforma interconnessa per lacondivisione e il trasferimento di energia einformazione con vantaggi economici per iconsumatori e produttori di energiaKinexia – Company Presentation Lugano Small & Mid Cap Investor Day

SMART PROJECT: SMART GRIDKinexia – Company Presentation Lugano Small & Mid Cap Investor Day

SMART PROJECT: SMART GRID, SMART HOMEKinexia – Company Presentation Lugano Small & Mid Cap Investor Day

DISCLAIMERThis document has been prepared by KINEXIA solely for information purposes and for use in presentations of the Group’sstrategies and financials. The information contained herein has not been independently verified. No representation or warranty,express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness ofthe information or opinions contained herein. Neither the company, its advisors or representatives shall have any liabilitywhatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents orotherwise arising in connection with this document. The forward-looking information contained herein has been prepared on thebasis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary. This documentdoes not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of orbe relied upon in connection with any contract or commitment whatsoever. The information herein may not be reproduced orpublished in whole or in part, for any purpose, or distributed to any other party. These materials do not constitute or form apart of any offer or solicitation to purchase or subscribe for securities.Kinexia – Company Presentation Lugano Small & Mid Cap Investor Day20

ContactsKinexia – Company SMART Project Presentation Lugano Small & Mid Cap Investor Day21