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Italgas Investor Presentation 2021
4178_10-q_2021-10-27_d77348f0-6036-4709-a35a-26d32b92e9e5.pdf
Investor Presentation
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9M 2021 RESULTS KEY HIGHLIGHTS
Growth remains strong led by RAB increase, services to clients and costs control, despite DL570 negative impact
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(*) excluding the post-tax cost of bond buyback transaction finalised in February 2021 for €4.9mn
Capex remains strong, as digital transformation and network repurposing efforts continue.
Cashflow generation year on year reflects better working capital evolution in the 9M
Net Debt evolution reflects higher capex
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(*) Operating leases ex IFRS 16 €68.3mn at the end of 9M 2021 and €76.3mn at the end of 2020
(*) Gas and electricity; (**) Leak detection Search Area
- - Gas injected: 6.4 bln Sm3 (+11%)
- - Gas for pre-heat: 6.3 mil Sm3 (+0%)
- - 88% gas consumption used for pre-heat
- - Net electricity: 70.9 TJ (-6%)
CAPEX GROWING IN LINE WITH EXPECTATIONS
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9M 2021 €612.6mn +10.3% yoy
545km new networks pipes of which 62km in Sardinia
645k smart meters installed***
Note: capex including IFRS 16; (*) including metering (**) new networks only; (***) of which 276k related to the replacement of traditional meters excluding affiliates
RESULTS 9M 2021 REPORTED VS ADJUSTED
Change 9M 2021 adjusted 9M 2021 reported
P&L, € mln
| Total Revenues | 1,005.7 | 1,005.7 | - |
|---|---|---|---|
| Operating expenses | - 256.7 | - 256.7 | - |
| EBITDA | 749.0 | 749.0 | - |
| Depreciation & amortisation | - 318.4 | - 318.4 | - |
| EBIT | 430.6 | 430.6 | - |
| Net interest income (expenses) | - 46.0 | - 39.6 | 6.4 |
| Net income from associates | 2.3 | 2.3 | - |
| EBT | 386.9 | 393.3 | 6.4 |
| Income taxes | - 104.8 | - 106.3 | - 1.5 |
| NET PROFIT before minorities | 282.1 | 287.0 | 4.9 |
| Minorities | - 13.4 | - 13.4 | - |
| NET PROFIT after minorities | 268.7 | 273.6 | 4.9 |
- 6.4mn cost of bond buyback transaction finalised in February
- 1.5mn fiscal impact of above mentioned non-recurring item
RESULTS 9M 2021 ADJUSTED
P&L, € mln
| 978.0 | 1,005.7 | 27.7 | |
|---|---|---|---|
| - 263.7 | - 256.7 | 7.0 | |
| 714.3 | 749.0 | 34.7 | + 4.9% |
| - 312.9 | - 318.4 | - 5.5 | |
| 401.4 | 430.6 | 29.2 | + 7.3% |
| - 40.2 | - 39.6 | 0.6 | |
| 1.2 | 2.3 | 1.1 | |
| 362.4 | 393.3 | 30.9 | |
| - 100.7 | - 106.3 | - 5.6 | |
| 261.7 | 287.0 | 25.3 | |
| - 14.0 | - 13.4 | 0.6 | |
| 247.7 | 273.6 | 25.9 | + 10.5% |
9M 2021
RESULTS Revenues +2.8% vs 9M 2020
(*) including capital gain from real estate assets sale for €4.2 mn
RESULTS 9M 2021
9M 2020 9M 2021 Change
REVENUES, € mln
| Regulated revenues | 949.3 | 962.8 | 13.5 |
|---|---|---|---|
| Distribution | 893.1 | 893.0 | - 0.1 |
| Tariff contribution for meters replacement | 7.4 | 8.7 | 1.3 |
| Other distribution revenues | 48.8 | 61.1 | 12.3 |
| Other revenues | 28.7 | 42.9 | 14.2 |
| TOTAL REVENUES | 978.0 | 1,005.7 | 27.7 |
9M 2021
RESULTS Operating expenses -2.7% vs 9M 2020
€mn
RESULTS 9M 2021
9M 2020 9M 2021 Change
OPERATING EXPENSES, € mln
| Distribution fixed costs | 183.2 | 169.7 | - 13.5 |
|---|---|---|---|
| Net labour cost | 104.6 | 97.8 | - 6.8 |
| Net external cost | 78.5 | 71.9 | - 6.7 |
| Other activities | 18.5 | 29.6 | 11.1 |
| Net labour cost | 2.4 | 3.7 | 1.3 |
| Net external cost | 16.1 | 25.9 | 9.9 |
| Other costs | 5.7 | 2.1 | - 3.6 |
| Tee | 4.9 | 2.9 | - 2.0 |
| Concessions fees | 51.4 | 52.4 | 1.0 |
| OPERATING EXPENSES | 263.7 | 256.7 | - 7.0 |
9M 2021
RESULTS Ebit +7.3% vs 9M 2020
€mn
9M 2021
RESULTS Adjusted Net Profit +10.5% vs 9M 2020
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(*) includes IFRS16 effects, (**) excludes Isgas33 initial debt
FINANCIAL STRATEGY A KEY SOURCE OF VALUE CREATION
Limited refinancing needs and liquidity buffer ~€680mn
Low exposure to interest rates volatility and long debt tenor
Best in class cost of debt of ~1% in 9M 2021
2 fixed rate ESG-linked loans signed for €500mn
Debt Maturities
9M 2021 Gross Debt Structure*
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EIB
RESULTS 9M 2021
BALANCE SHEET Change 31/12/20 30/09/21
| € mln | |
|---|---|
| Net invested capital | 6,713.9 | 7,078.6 | 364.7 |
|---|---|---|---|
| Fixed capital | 6,707.2 | 7,000.2 | 293.0 |
| Tangible fixed assets | 369.9 | 369.8 | - 0.1 |
| Net intangible fixed assets | 6,511.5 | 6,816.5 | 305.0 |
| Net payables investments | - 208.6 | - 221.3 | - 12.7 |
| Equity-accounted and other investments | 34.4 | 35.2 | 0.8 |
| Net working capital | 111.2 | 177.0 | 65.8 |
| Provisions for employee benefits | - 104.6 | - 98.7 | 5.9 |
| Assets held for sale and directly related liabilities | 0.1 | 0.1 | - |
| Net financial debt | 4,736.5 | 5,055.4 | 318.9 |
| Financial debt for operating leases (IFRS 16) | 76.3 | 68.3 | - 8.0 |
| Net financial debt ex operating leases | 4,660.2 | 4,987.1 | 326.9 |
| Shareholders' equity | 1,977.4 | 2,023.2 | 45.8 |
9M 2021 CONCLUSION
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Selected as preferred bidder for DEPA Infrastructure
Results confirm our strong industrial capabilities and environmental performance is a strong focus for the group
Waiting for ARERA to publish second consultation document on allowed returns by early November
We confirm our overall targets for the year
RESULTS P&L QUARTERLY ADJUSTED
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1Q 2021 2Q 2021 3Q 2021 4Q 2021
€ mln
| Total Revenues | 333.3 | 332.1 | 340.3 | |
|---|---|---|---|---|
| Operating expenses | - 98.9 | - 77.4 | - 80.4 | |
| EBITDA | 234.4 | 254.7 | 259.9 | |
| Depreciation & amortisation | - 104.5 | - 105.2 | - 108.7 | |
| EBIT | 129.9 | 149.5 | 151.2 | |
| Net interest income (expenses) | - 13.6 | - 11.8 | - 14.2 | |
| Net income from associates | 0.6 | 0.5 | 1.2 | |
| EBT | 116.9 | 138.2 | 138.2 | |
| Income taxes | - 31.0 | - 39.2 | - 36.1 | |
| NET PROFIT before minorities | 85.9 | 99.0 | 102.1 | |
| Minorities | - 4.7 | - 4.1 | - 4.6 | |
| NET PROFIT after minorities | 81.2 | 94.9 | 97.5 |
RESULTS 2Q
3Q 2020 3Q 2021 Change
€ mln
| Total Revenues | 331.2 | 340.3 | 9.1 |
|---|---|---|---|
| Operating expenses | - 78.7 | - 80.4 | - 1.7 |
| EBITDA | 252.5 | 259.9 | 7.4 |
| Depreciation & amortisation | - 105.1 | - 108.7 | - 3.6 |
| EBIT | 147.4 | 151.2 | 3.8 |
| Net interest income (expenses) | - 13.9 | - 14.2 | - 0.3 |
| Net income from associates | 0.2 | 1.2 | 1.0 |
| EBT | 133.7 | 138.2 | 4.5 |
| Income taxes | - 35.7 | - 36.1 | - 0.4 |
| NET PROFIT before minorities | 98.0 | 102.1 | 4.1 |
| Minorities | - 4.6 | - 4.6 | - |
| NET PROFIT after minorities | 93.4 | 97.5 | 4.1 |
MAIN NUMBERS
| E-MARKET SDIR |
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| OPERATING HIGHLIGHTS (TOTAL) |
OF WHICH AFFILIATES |
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|---|---|---|
| Network length | 74,106 km | 1,884 km |
| Municipalities | 1,898 | 61 |
| Redelivery Points | 7.746 mn | 0.153 mn |
| Market Share(1) | 35% | 0.1% |
DISCLAIMER
Italgas's Manager, Giovanni Mercante, 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 Italgas that are based on current expectations, estimates, forecasts, and projections about the industries in which Italgas operates and the beliefs and assumptions of the management of Italgas. 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 identi9M 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, Italgas'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 Italgas speak only as of the date they are made. Italgas does not undertake to update forwardlooking statements to reflect any changes in Italgas'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 Italgas may make in documents it files with the Italian Securities and Exchange Commission and with the Italian Stock Exchange.
IR contacts
Anna Maria Scaglia Armando Iobbi