Italy Water Systems

Question 1

What are typical KPIs used?

Answer 1

• EBITDA
• post-tax project IRR
• equity IRR
• debt service cover ratio
• loan life cover ratio

Question 2

Characteristics EBITA

Answer 2

good indicator for a company performance/profitability

Question 3

Post-tax project IRR

Answer 3

Separates the project´s business performance from the financing structure
Inflows: full amount of money, needed in the project
Outflows: cash, generatded in the project, excluding financing cash flow

Question 4

Equity IRR

Answer 4

Cash flow available for equity holders

Cash flow from the project – interest and debt repayments

Question 5

DSCR (Debt Service Cover Ratio)

Answer 5

Ratio of cash available for debt servicing to interest, principal and lease payments
The higher ratio, the easier to obtain a loan
DSCR > 1: the entity generates sufficient cash flow to pay debt obligations
DSCR < 1: indicates that there is not enough cash flow to cover loan payments
DSCR = Net Operating Income / Debt Services

Question 6

LLCR (Loan Life Cover Ratio)

Answer 6

Credit quality
Lender´s perspective
NPV / Debt balance

Question 7

Characteristics of liquidity

Answer 7

• Shows the ability to provide cash at any time
• Can be influenced by divident policies, loan agreements, CAPEX, etc.
• Outcome of the cash flow statement
• Delta of capital fund through cash flow
• Contains profit-irrelevant sizes (CAPEX)

Question 8

Characteristics of profitability

Answer 8

• Reflects the abilty of the company to earn money
• Can be influenced by reference numbers (Earnings, EBIT, EBITDA) or accounting options
• Outcome of the P&L statement
• Annual size
• Can contain cash-irrelevant sizes (D/A)