Investor Presentation • Jul 25, 2023
Investor Presentation
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Milan 25.07.2023
key highlights Ongoing strong performance led by Greece consolidation and ESCo. RAB growth drives Italian distribution, offsetting impact of disposals.
Capex increases thanks to contribution of Greece. Decreasing operating cashflow driven mainly by Superbonus receivables and lower positive billing seasonality. Growing Net Debt as expected
Note: capex including IFRS 16, total amounts; (1) includes metering (2) includes Sardinia
Italgas' ownership marks a steep change in development effort New networks well spread across most regions 57% of the new 311km of lines are "in gas"
Working hard on targeted DSOs integration
(*) Civil and industrial consumption;
Fugitive emissions 79% of total Italian Scope 1 & 2 emissions
Including Greece in 2023
Italy only
| Total Revenues | 707.4 | 931.8 | 224.4 | |
|---|---|---|---|---|
| Operating expenses | - 194.1 | - 324.8 | - 130.7 | |
| EBITDA | 513.3 | 607.0 | 93.7 | 18 3% + |
| Depreciation & amortisation | - 217.3 | - 248.2 | - 30.9 | |
| EBIT | 296.0 | 358.8 | 62.8 | 21 2% + |
| Net interest income (expenses) | - 26.3 | - 44.6 | - 18.3 | |
| Net income from associates* | 0.5 | - 0.3 | - 0.8 | |
| EBT* | 270.2 | 313.9 | 43.7 | |
| Income taxes | - 75.1 | - 85.2 | - 10.1 | |
| NET PROFIT before minorities* | 195.1 | 228.7 | 33.6 | |
| Minorities | - 9.5 | - 15.5 | - 6.0 | |
| NET PROFIT after minorities* | 185.6 | 213.2 | 27.6 | 14 9% + |
| Regulated revenues Italy distribution | 639.2 | 636.1 | - 3.1 |
|---|---|---|---|
| Distribution | 591.4 | 597.6 | 6.2 |
| Tariff contribution for meters replacement | 1.1 | 0.7 | - 0.4 |
| Other distribution revenues | 46.7 | 37.9 | - 8.8 |
| Other revenues | 68.2 | 208.7 | 140.5 |
| DEPA Infrastructure | - | 87.0 | 87.0 |
| TOTAL REVENUES | 707.4 | 931.8 | 224.4 |
€mn
| Distribution fixed costsItaly | 108.4 | 101.8 | - 6.6 |
|---|---|---|---|
| Net labour cost | 66.7 | 65.3 | - 1.4 |
| Net external cost | 41.7 | 36.5 | - 5.2 |
| Other activities | 51.7 | 160.8 | 109.1 |
| Net labour cost | 3.4 | 3.5 | 0.1 |
| Net external cost | 48.3 | 157.3 | 109.0 |
| Other costs | - 2.2 | 1.3 | 3.5 |
| Tee | 1.8 | 1.6 | - 0.2 |
| Concessions fees | 34.4 | 33.3 | - 1.1 |
| DEPA Infrastructure | - | 25.9 | 25.9 |
| OPERATING EXPENSES | 194.1 | 324.8 | 130.7 |
€500mn bond issuance in June for pre-funding
Average cost of debt of ~1.4% in 1H 2023
| Net invested capital | 8,390.7 | 8,662.2 | 271.5 |
|---|---|---|---|
| Fixed capital | 8,120.6 | 8,248.5 | 127.9 |
| Tangible fixed assets | 379.0 | 388.8 | 9.8 |
| Net intangible fixed assets | 7,975.5 | 8,087.0 | 111.5 |
| Net payables investments | - 303.5 | - 296.3 | 7.2 |
| Equity-accounted and other investments | 69.6 | 69.0 | - 0.6 |
| Net working capital | 340.0 | 482.1 | 142.1 |
| Provisions for employee benefits | - 69.9 | - 68.4 | 1.5 |
| Net financial debt | 6,000.1 | 6,314.8 | 314.7 |
| Financial debt for operating leases (IFRS 16) | 72.0 | 84.1 | 12.1 |
| Net financial debt ex operating leases | 5,928.1 | 6,230.7 | 302.6 |
| Shareholders' equity | 2,390.6 | 2,347.4 | - 43.2 |
Italian gas distribution fundamentals remain strong, with RAB growth, despite negative impact of disposals Greece and ESCo remain relevant growth contributors Allowed return 2023 set by RAEWW at 8.57% for the three DSOs Working on Veolia deal closure
Guidance for 2023 confirmed
| Total Revenues | 353.4 | 451.9 | 98.5 |
|---|---|---|---|
| Operating expenses | - 90.1 | - 142.1 | - 52.0 |
| EBITDA | 263.3 | 309.8 | 46.5 |
| Depreciation & amortisation | - 109.2 | - 123.5 | - 14.3 |
| EBIT | 154.1 | 186.3 | 32.2 |
| Net interest income (expenses) | - 12.4 | - 24.7 | - 12.3 |
| Net income from associates* | 0.3 | - 0.7 | - 1.0 |
| EBT* | 142.0 | 160.9 | 18.9 |
| Income taxes | - 40.7 | - 44.1 | - 3.4 |
| NET PROFIT before minorities* | 101.3 | 116.8 | 15.5 |
| Minorities | - 4.6 | - 7.2 | - 2.6 |
| NET PROFIT after minorities* | 96.7 | 109.6 | 12.9 |
Note: DEPA Infrastructure fully consolidated as of 1st September 2022
(*) 2022 income from associates adjusted for Gaxa capital gain
| Total Revenues | 479.9 | 451.9 |
|---|---|---|
| Operating expenses | - 182.7 | - 142.1 |
| EBITDA | 297.2 | 309.8 |
| Depreciation & amortisation | - 124.7 | - 123.5 |
| EBIT | 172.5 | 186.3 |
| Net interest income (expenses) | - 19.9 | - 24.7 |
| Net income from associates | 0.4 | - 0.7 |
| EBT | 153.0 | 160.9 |
| Income taxes | - 41.1 | - 44.1 |
| NET PROFIT before minorities | 111.9 | 116.8 |
| Minorities | - 8.3 | - 7.2 |
| NET PROFIT after minorities | 103.6 | 109.6 |
| OPERATING HIGHLIGHTS (TOTAL) |
OF WHICH ITALY with affiliates |
OF WHICH GREECE | |||
|---|---|---|---|---|---|
| Network length | 81,582 km | 73,913 km | 7,669km | ||
| Municipalities | 2,045 | 1,905 | 140 | ||
| Active Redelivery Points | 7.96 mn | 7.37 mn | 0.59 mn |
To be a leading figure in the world of energy, driving its sustainable evolution and innovating each day to improve people's quality of life.
Pioneers by passion and builders by calling, we bring all our energy to accelerate the ecological transition. We do it for us. We do it for everyone.
We have guaranteed efficient, safe and excellent energy services to the community for over 180 years. We favour the energy transition, creating the networks of the future and promoting innovative, sustainable solutions. We take care of local communities. We fuel positive, productive relationships with all of our stakeholders: individuals, companies, suppliers and shareholders. We enter new markets where we can apply our distinctive expertise. We promote the growth of individuals and develop talent, creating inclusive, stimulating work environments
Italgas's Manager, Gianfranco Maria Amoroso, 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 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, 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.
Anna Maria Scaglia Armando Iobbi
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