Italgas

Investor Presentation • Mar 12, 2024

FY 2023

Results

Milan 12.03.2024

Key highlights

Italian distribution mitigated impact of disposals, high inflation and interest rates

Greece and Esco were significant growth engines

Strategic entry into water sector

Sustainability performance proves validity of actions put in place

2024 Regulatory decisions based on the last 2yrs macro

Keep creating value for our shareholders Proposing dividend of 0.352€ /share

key highlights Numbers in line with guidance, with growth in all P&L lines

FY 2023 Results key highlights

Italian distribution cash generation supports investment growth and other businesses' development

FY 2023 Results ESG social targets

Social targets

• accelerated effort on training totalling 173,330 hours in Italy and Greece
• female presence keeps growing, both on total workforce (20.3%) and responsibility roles (28.8%, vs 2029 target of 28%)

Operating expenses adj +30.0% vs FY 2022

€mn

EBITDA adj +9.3% vs FY 2022

€mn

1 1

Change FY 2022 adjusted* FY 2023 adjusted*

P&L, € mln

Total Revenues	1,537.3	1,774.8	237.5
Operating expenses	- 454.6	- 591.1	- 136.5
EBITDA	1,082.7	1,183.7	101.0	9 3% +
Depreciation & amortisation	- 459.9	- 502.5	- 42.6
EBIT	622.8	681.2	58.4	9 4% +
Net interest income (expenses)	- 56.3	- 98.2	- 41.9
Net income from associates*	0.7	3.1	2.4
EBT	567.2	586.1	18.9
Income taxes	- 150.9	- 118.6	32.3
NET PROFIT before minorities	416.3	467.5	51.2
Minorities	- 20.6	- 27.9	- 7.3
NET PROFIT after minorities	395.7	439.6	43.9	11 1% +

Delta FY 2023 reported FY 2023 adjusted

P&L, € mln

Total Revenues	1,817.5	1,774.8	42.7
Operating expenses	- 609.9	- 591.1	- 18.8
EBITDA	1,207.6	1,183.7	23.9
Depreciation & amortisation	- 526.4	- 502.5	- 23.9
EBIT	681.2	681.2	-
Net interest income (expenses)	- 98.2	- 98.2	-
Net income from associates*	3.1	3.1	-
EBT	586.1	586.1	-
Income taxes	- 118.6	- 118.6	-
NET PROFIT before minorities	467.5	467.5	-
Minorities	- 27.9	- 27.9	-
NET PROFIT after minorities	439.6	439.6	-

effects of Resolution 737/2022/R/gas related to recognition of the residual value of replaced smart meters and related charges and impairments

Note: Enaon (formerly DEPA Infrastructure) fully consolidated as of 1st September 2022;

FY 2022 Change FY 2023

Geoside, € mln

Total Revenues	155.8	298.9	143.1
Operating expenses	- 127.5	- 244.3	- 116.8
EBITDA	28.3	54.6	26.3
Depreciation & amortisation	- 3.0	- 3.4	- 0.4
EBIT	25.3	51.2	25.9
EBITDA Margin	18%	18%

FY 2023 Results debt structure

2024 New €650mn bond issued and new sustainability linked RCF (€600mn) signed to keep an adequate buffer going forward

Average cost of debt ~1.4% in FY 2023

Net Debt €6,6bn with IFRS 16 at FY implying <65% leverage2

Gross Debt Structure1 31/12/2023

Shareholders' return

Strong growth pattern continues

Dividend proposal implies

11.04% growth vs 2022 above DPS policy floor of 4%

Dividend per share (€)

FY 2022 FY 2023 Change

REVENUES adjusted, € mln

Regulated revenues Italy distribution	1,263.1	1,283.8	20.7
Distribution	1,175.5	1,197.3	21.8
Tariff contribution for meters replacement	2.0	10.0	8.0
Other distribution revenues	85.7	76.5	- 9.2
Other revenues	222.8	322.3	99.6
DEPA Infrastructure	51.4	168.6	117.3
TOTAL REVENUES	1,537.3	1,774.8	237.5

FY 2022 FY 2023 Change

OPERATING EXPENSES adjusted, € mln

Distribution fixed costsItaly+Greece	244.8	263.8	19.0
Net labour cost	148.8	162.8	14.0
Net external cost	96.0	101.0	5.0
Other activities	143.6	250.5	106.9
Net labour cost	6.9	7.7	0.8
Net external cost	136.7	242.8	106.1
Other costs	- 1.0	8.3	9.3
Tee	1.8	1.6	- 0.2
Concessions fees	65.4	66.9	1.5
OPERATING EXPENSES	454.6	591.1	136.5

FY 2023 Results Balance sheet

31/12/22 31/12/23 Change

€ mln

Net invested capital	8,390.7	9,235.0	844.3
Fixed capital	8,120.6	8,421.4	300.8
Tangible fixed assets	379.0	386.0	7.0
Net intangible fixed assets	7,975.5	8,250.3	274.8
Net payables investments	- 303.5	- 370.5	- 67.0
Equity-accounted and other investments	69.6	155.6	86.0
Net working capital	340.0	872.3	532.3
Provisions for employee benefits	- 69.9	- 65.3	4.6
Assets held for sale and directly related liabilities	-	6.6	6.6
Net financial debt	6,000.1	6,634.3	634.2
Financial debt for operating leases (IFRS 16)	72.0	79.1	7.1
Net financial debt ex operating leases	5,928.1	6,555.2	627.1
Shareholders' equity	2,390.6	2,600.7	210.1

4Q 2023 Results

P&L adjusted, € mln

Total Revenues	450.3	405.0	- 45.3
Operating expenses	- 153.0	- 131.8	21.2
EBITDA	297.3	273.2	- 24.1
Depreciation & amortisation	- 129.4	- 128.7	0.7
EBIT	167.9	144.5	- 23.4
Net interest income (expenses)	- 15.2	- 26.2	- 11.0
Net income from associates	- 2.7	3.7	6.4
EBT	150.0	122.0	- 28.0
Income taxes	- 38.5	6.2	44.7
NET PROFIT before minorities	111.5	128.2	16.7
Minorities	- 4.4	- 5.3	- 0.9
NET PROFIT after minorities	107.1	122.9	15.8

FY 2023 Results quarters

3Q 2023 4Q 2023 1Q 2023 2Q 2023

P&L adjusted, € mln

Total Revenues	479.9	451.9	438.0	405.0
Operating expenses	- 182.7	- 142.1	- 134.5	- 131.8
EBITDA	297.2	309.8	303.5	273.2
Depreciation & amortisation	- 124.7	- 123.5	- 125.6	- 128.7
EBIT	172.5	186.3	177.9	144.5
Net interest income (expenses)	- 19.9	- 24.7	- 27.4	- 26.2
Net income from associates	0.4	- 0.7	- 0.3	3.7
EBT	153.0	160.9	150.2	122.0
Income taxes	- 41.1	- 44.1	- 39.6	6.2
NET PROFIT before minorities	111.9	116.8	110.6	128.2
Minorities	- 8.3	- 7.2	- 7.1	- 5.3
NET PROFIT after minorities	103.6	109.6	103.5	122.9

FY 2023 Results main physical data

	OPERATING HIGHLIGHTS (TOTAL)	OF WHICH ITALY OF WHICH GREECE with affiliates
Network length	82,033.7 km	74,109.7 km		7,924.0 km
Municipalities	2,050	1,905		145
Active Redelivery Points	7.974 mn	7.375 mn		0.599 mn

Sustainability performance

Vision, Purpose e Mission

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

Disclaimer

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.

Investor.relations@italgas.it

Anna Maria Scaglia