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Italgas
Investor Presentation • Oct 24, 2024
4178_10-q_2024-10-24_280177a6-0cd5-411f-a945-c4b0e63c572b.pdf
Investor Presentation
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9M 2024 Results
9M 2024 Key highlights (1/2)
Improving momentum versus 1H with adj. EBITDA, EBIT, and Net Income growing double-digit. Growth in gas distribution and water more than offset negative impact from end of Superbonus.
2
+10.9%
Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024; (1) regulated revenues
9M 2024 Key highlights (2/2)
Operating cash flow improved materially more than covering technical investments, thanks to operating performance and positive contribution from part of Superbonus tax receivables. Net Debt in line with expectations
Note: (1) Operating leases ex IFRS 16 and IFRIC 12 €79.1mn at the end of FY 2023 and €91.2mn as of 30th September 2024
Technical Investments
9M 2024 €549.7mn, -6.7% vs 9M 2023
9M 2024 development and repurposing capex in line with 9M 2023 – 521km of network pipes laid, of which 292km in Greece
Lower digitization as projects are completed and lower centralised capex
Digitalization1 , €157.5mn
Other2; €46.0mn
4
Environmental performance
Continued reduction in energy consumption and Scope 1&2 emissions In the 9M whole network investigated >1.35 times. Gas leaked/km surveyed dropped by 36.7%
Revenues strong performance of regulated businesses
Operating expenses benefitting from like-for-like efficiencies
Expenses
others
€mn
Expenses
Adj. EBITDA & EBIT growing double-digit
EBITDA adj. +10.9% vs. 9M 2023 EBIT adj. +12.8% vs. 9M 2023
| 9M 2023 | 9M 2024 adjusted |
Change | ||
|---|---|---|---|---|
| P&L, € mln | ||||
| Total Revenues | 1,369.8 | 1,309.3 | - 60.5 |
|
| Operating expenses | - 459.3 |
- 300.0 |
159.3 | |
| EBITDA | 910.5 | 1,009.3 | 98.8 | + 10.9% |
| Depreciation & amortisation |
- 373.8 |
- 403.7 |
- 29.9 |
|
| EBIT | 536.7 | 605.6 | 68.9 | + 12.8% |
| Net interest income (expenses) | - 72.0 |
- 85.8 |
- 13.8 |
|
| Net income from equity investm. | - 0.6 |
7.4 | 8.0 | |
| EBT | 464.1 | 527.2 | 63.1 | |
| Income taxes | - 124.8 |
- 145.1 |
- 20.3 |
|
| NET PROFIT before minorities |
339.3 | 382.1 | 42.8 | |
| Minorities | - 22.6 |
- 20.4 |
2.2 | |
| NET PROFIT after minorities | 316.7 | 361.7 | 45.0 | + 14.2% |
10 Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024
9M 2024 Profit and loss reported vs adjusted
| reported vs adjusted | ||||
|---|---|---|---|---|
| 9M 2024 reported |
9M 2024 adjusted |
Adjustments | ||
| P&L, € mln | ||||
| Total Revenues | 1,299.4 | 1,309.3 | 9.9 | |
| Operating expenses | - 300.0 |
- 300.0 |
- | |
| EBITDA | 999.4 | 1,009.3 | 9.9 | |
| Depreciation & amortisation | - 403.7 |
- 403.7 |
- | |
| EBIT | 595.7 | 605.6 | 9.9 | |
| Net interest income (expenses) | - 85.8 |
- 85.8 |
- | |
| Net income from equity investm. | 7.4 | 7.4 | - | |
| EBT | 517.3 | 527.2 | 9.9 | |
| Income taxes | - 142.3 |
- 145.1 |
- 2.8 |
|
| NET PROFIT before minorities | 375.0 | 382.1 | 7.1 | |
| Minorities | - 20.4 |
- 20.4 |
- | |
| NET PROFIT after minorities | 354.6 | 361.7 | 7.1 | Post-tax negative impact of resolution 207/2024 impacts reported numbers |
11 Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024
9M 2024 Water results
| 9M 2024 reported1 |
9M 2024 pro quota2 |
||
|---|---|---|---|
| Water P&L, € mln | |||
| Total Revenues | 61.5 | 140.3 | |
| Operating expenses | - 39.5 |
- 99.5 |
Siciliacque and Acqualatina |
| EBITDA | 22.0 | 40.8 | pro-quota |
| Depreciation & amortisation | - 18.9 |
- 28.2 |
|
| EBIT | 3.1 | 12.6 |
12 Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024; (1) Siciliacque and Acqualatina equity accounted in the 9M reported; (2) assumes pro quota consolidation of Siciliacque and Acqualatina
Cash flow from operations more than covers Capex needs
13
9M 2024 Financial structure
On the back of deal announcement Moody's and Fitch affirmed Italgas' Baa2 and BBB+ long term ratings and S&P put 2i Rete Gas on CreditWatch Positive
Gross debt 30 09 20241
Low exposure to floating rates
Average cost of debt ~1.5% in 9M 2024
Net Debt €6.9bn with IFRS 16
9M 2024 Results conclusions
15
- Transformational 2i Rete Gas acquisition now fully integrated into our strategy and objectives
- Italgas, Moody's Baa2 and Fitch's BBB+ long term rating affirmed post 2i Rete Gas acquisition announcement
9M improve the trends of 1H
- ü Italian gas distribution fundamentals remain strong, more than offsetting the well-flagged slowdown of ESCo business
- ü Positive contribution from Greece and water on track with plans
- ü Solid operating cash flow generation
9M 2024 Quarterly P&L adjusted
1Q 2024 2Q 2024 3Q 2024
| Quarterly P&L adjusted, € mln |
|||
|---|---|---|---|
| Total Revenues | 431.3 | 441.0 | 437.0 |
| Operating expenses | -105.6 | -95.5 | - 98.9 |
| EBITDA | 325.7 | 345.5 | 338.1 |
| Depreciation & amortisation |
-133.0 | -136.4 | - 134.3 |
| EBIT | 192.7 | 209.1 | 203.8 |
| Net interest income (expenses) | -26.0 | -29.8 | - 30.0 |
| Net income from equity investm. | 3.8 | 2.3 | 1.3 |
| EBT | 170.5 | 181.6 | 175.1 |
| Income taxes | -45.2 | -51.8 | - 48.1 |
| NET PROFIT before minorities |
125.3 | 129.8 | 127.0 |
| Minorities | -7.7 | -5.9 | - 6.8 |
| NET PROFIT after minorities | 117.6 | 123.9 | 120.2 |
| 9M 2024 Revenues breakdown | ||||
|---|---|---|---|---|
| 9M 2023 | 9M 2024 adjusted |
Change | ||
| Adjusted REVENUES, € mln |
||||
| Regulated revenues Italy distribution |
957.3 | 1,081.0 | 123.7 | |
| Distribution | 898.1 | 1,018.5 | 120.4 | |
| Tariff contribution for meters replacement |
3.4 | 2.7 | - 0.7 |
|
| Other distribution revenues |
55.9 | 59.8 | 3.9 | |
| Enaon (Greece) | 130.4 | 131.1 | 0.7 | |
| Other revenues |
282.0 | 97.2 | - 184.8 |
|
| TOTAL REVENUES | 1,369.8 | 1,309.3 | - 60.5 |
9M 2024 Operating expenses
| OPERATING EXPENSES, € mln |
|||
|---|---|---|---|
| Distribution fixed costs Italy + Greece | 188.9 | 179.4 | - 9.5 |
| Net labour cost | 117.5 | 111.8 | - 5.7 |
| Net external cost | 71.4 | 67.6 | - 3.8 |
| Other activities | 214.6 | 60.8 | - 153.8 |
| Net labour cost | 5.4 | 10.4 | 5.0 |
| Net external cost | 209.2 | 50.4 | - 158.8 |
| Other costs | 4.0 | 5.2 | 1.2 |
| Tee | 1.6 | 0.1 | - 1.5 |
| Concessions fees | 50.2 | 54.6 | 4.4 |
| OPERATING EXPENSES | 459.3 | 300.0 | - 159.3 |
9M 2023 9M 2024 Change
9M 2024 Balance sheet
31/12/2023 30/09/2024 Change
20
| € mln | |||
|---|---|---|---|
| Net invested capital | 9,235.0 | 9,573.3 | 338.3 |
| Fixed capital | 8,421.4 | 8,705.6 | 284.2 |
| Tangible fixed assets | 386.0 | 376.3 | - 9.7 |
| Net intangible fixed assets | 8,250.3 | 8,432.9 | 182.6 |
| Net payables investments | -370.5 | - 298.8 |
71.7 |
| Equity-accounted and other investments | 155.6 | 195.2 | 39.6 |
| Net working capital | 872.3 | 926.9 | 54.6 |
| Provisions for employee benefits | -65.3 | - 63.3 |
2.0 |
| Assets held for sale and directly related liabilities | 6.6 | 4.1 | - 2.5 |
| Net financial debt | 6,634.3 | 6,904.7 | 270.4 |
| Financial debt for operating leases (IFRS 16) | 79.1 | 91.2 | 12.1 |
| Net financial debt ex operating leases | 6,555.2 | 6,813.5 | 258.3 |
| Shareholders' equity | 2,600.7 | 2,668.6 | 67.9 |
Note: Acqua Campania and its subsidiaries fully consolidated starting from 30th January 2024
Sustainability performance
Maximum score Italgas Sector Average
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.
Vision Purpose
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' 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' 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 forward looking statements to reflect any changes in Italgas' 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.
[email protected]
Anna Maria Scaglia Emanuele Isella