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Italgas Investor Presentation 2021
4178_10-q_2021-05-05_69ba1702-75a4-4f28-bed8-d345dfc73c8b.pdf
Investor Presentation
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1Q 2021 RESULTS KEY HIGHLIGHTS
Growth path continues led by RAB growth and costs control despite Resolution 570 (impact in 1Q of €2m)
2
(*) excluding post tax cost of bond buyback transaction finalised in February 2021 for €4.9mn
3
Capex in line with last year Cashflow generation also reflects working capital evolution Net Debt decreased on the back of cashflow generation
(*) Operating leases ex IFRS 16 €75.0mn at the end of 1Q 2021 and €76.3mn at the end of 2020
CAPEX MIX HAS CHANGED AS EXPECTED
203km new networks pipes of
which 40km in Sardinia
262k new smart meters
installed***
4
1Q 2021 €206.7mn +0.5% yoy
Note: capex including IFRS 16; (*) including metering (**) new networks only; (***) of which 106k related to the replacement of traditional meters excluding affiliates
RESULTS 1Q 2021 REPORTED VS ADJUSTED
Change 1Q 2021 adjusted 1Q 2021 reported
€ mln
| Total Revenues | 333-3 | 333-3 | |
|---|---|---|---|
| Operating expenses | - 98 9 | - 98.9 | |
| EBITDA | 234.4 | 234.4 | |
| Depreciation & amortisation | - 104 5 | - 104.5 | |
| FBIT | 129.9 | 129.9 | |
| Net interest income (expenses) | - 20.0 | - 13.6 | 64 |
| Net income from associates | 0.6 | 0.6 | |
| FRT | 110.5 | 116.9 | 6.4 |
| Income taxes | - 29.5 | -31.0 | - 1.5 |
| NET PROFIT before minorities | 81.0 | 85.9 | 4.9 |
| Minorities | - 4 7 | - 4 / | |
| NET PROFIT after minorities | 76.3 | 81.2 | 4.9 |
- 6.4mn cost of bond buyback transaction finalised in February
- 1.5mn fiscal impact of above mentioned non-recurring item
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RESULTS 1Q 2021 ADJUSTED
Change 1Q 2021 adjusted 1Q 2020 adjusted
€ mln
| + 3.3% | ||
|---|---|---|
| + 5.2% | ||
| + 7.8% |
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RESULTS Revenues +1.9% vs 1Q 2020
(*) including tariff adjustments
RESULTS 1Q 2021
1Q 2020 1Q 2021 Change
| Requiated revenues | 315.3 | 321.0 | 0-1 |
|---|---|---|---|
| Distribution | 294 9 | 298.0 | 3.1 |
| Tariff contribution for meters replacement | 2.5 | 3.3 | 0.8 |
| Other distribution revenues | 17.9 | 19.7 | 1.8 |
| Other revenues | 11.8 | 12.3 | 0.5 |
| TOTAL REVENUES | 327-1 | 333.3 | 6.2 |
RESULTS Operating expenses -1.3% vs 1Q 2020
€mn 100.2 98.9 -0.3 1.6 -2.6 1Q 2020 Operating Expenses Distribution* Other activities TEE & Other 1Q 2021 Operating Expenses
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RESULTS 1Q 2021
1Q 2020 1Q 2021 Change
€ mln
| Distribution fixed costs | 68-4 | 68.1 | - 0.3 |
|---|---|---|---|
| Net labour cost | 37.6 | 39.0 | 14 |
| Net external cost | 30.8 | 29.1 | - 1 - 1 |
| Other activities | 7.9 | 9.5 | 1.6 |
| Net labour cost | 0.9 | 0.2 | |
| Net external cost | 7.0 | 8.4 | 1 4 |
| Other costs | 2.0 | 0.9 | - - - |
| Tee | 4 9 | 3.0 | - 2.0 |
| Concessions fees | 17.0 | 17.4 | 0.4 |
| OPERATING EXPENSES | 100.2 | 98.9 | - 1 3 |
RESULTS Ebit +5.2% vs 1Q 2020
€mn
RESULTS Adjusted Net Profit +7.8% vs 1Q 2020
1 3
(*) includes IFRS16 effects
FINANCIAL STRATEGY A KEY SOURCE OF VALUE CREATION
Limited refinancing needs
Liquidity buffer €892mn
Low exposure to interest rates volatility and long debt tenor
Best in class cost of debt of ~1% in 1Q 2021
Debt Maturities
1Q 2021 Gross Debt Structure*
EIB Bond
Institutional
RESULTS 1Q 2021 BALANCE SHEET
FY 2020 1Q 2021 Change
€ mln
| Net invested capital | 6.7 3.9 | 6.679.2 | -34-7 |
|---|---|---|---|
| Fixed capita | 6,707.2 | 6.792.3 | 85.1 |
| Tangible fixed assets | 369 9 | 367 7 | -22 |
| Net intangible fixed assets | 6.511.5 | 6,614.2 | 102.7 |
| Net payables investments | - 208.6 | - 274 6 | - 16.0 |
| Equity-accounted and other investments | 34.4 | 35.0 | 0.6 |
| Net working capita | 111.2 | - 10.1 | - 121.3 |
| Provisions for employee benefits | - 104 6 | - 103.1 | 1.5 |
| Assets held for sale and directly related liabilities | 0.1 | 0.1 | |
| Net financial debt | 4,736.5 | 4.617.6 | - 118.9 |
| Financial debt for operating leases (IFRS 16) | 76 3 | 75 0 | -13 |
| Net financial debt ex operating leases | 4.660.2 | 4.542.6 | - 117.6 |
| Shareholders' equity | 1.977.4 | 2.061.6 | 84.2 |
1Q 2021 CONCLUSION
Growth led by RAB increase
Change in capex mix reflecting the "nearly" completed meters replacement plan
Cost efficiency continues thanks to Digital Transformation
Additional focus on Sustainability
Successful bond issuance
New business plan 2020-27 to be presented in June
MAIN NUMBERS
| OPERATING HIGHLIGHTS (TOTAL) |
OF WHICH AFFILIATES |
|
|---|---|---|
| Network length | 73.319 km | 1,877 km |
| Municipalities | 1,888 | 61 |
| Redelivery Points | 7.750 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 identi1Q 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