Slide 1: 9M 2020 results
9M 2020 results Milan 30.10.2020
Slide 2: Key highlights: revenues, EBITDA, EBIT, net income
9M 2020 Mitigation of resolution 570 impact continued in 3rd quarter RESULTS Key highlights 978.0 715.7 916.9 660.7 9M 2020 9M 2020 Revenues +6.7% +8.3% 9M 2019 EBITDA 9M 2019 € mn € mn 399.7 262.6 246.5 376.9 9M 2020 9M 2020 Net EBIT +6.0% -6.1% 9M 2019 9M 2019 Income € mn € mn 2
Slide 3: Key highlights: capex, operating cash flow, net debt
9M 2020 RESULTS Key highlights 495.3 556.6 528.8 424.4 9M 2020 9M 2020 Operating +12.4% -19.7% 9M 2019 Capex 9M 2019 Cash Flow € mn € mn Capex delivery remained strong 4,410.6 4,770.9 Operating Cash flow negatively impacted by working capital 9M 2020 Net Debt increase should be partially Net + 360.3
Slide 4: Capex
CAPEX 9M 2020 marks a new record 556.6 495.3 9M capex +12.4% yoy €mn 9M 2019 9M 2020 3Q capex saw a strong acceleration in networks, while difficult in accessing private building remains a topic for metering 3Q capex up yoy 206.1 165.2 163.3 178.0 187.0 152.1 positive trend continues €mn 1Q 2019 1Q
Slide 5: Capex: some change in mix
CAPEX Some change in mix 9M 2020 556.6mn +12.4% yoy 702km new networks pipes built of which 283km in Sardinia 874k new smart meters installed* Other 9% Metering 16% Development, maintenance 49% Digitization 11% Sardinia 15% 5 (*) of which 631k related to the replacement of traditional meters includi
Slide 6: Results
RESULTS 9M 2020 9M 2019 9M 2020 Change €mn Revenues 916.9 978.0 61.1 Operating expenses - 256.2 - 262.3 - 6.1 EBITDA 660.7 715.7 55.0 + 8.3% Depreciation & amortisation - 283.8 - 316.0 - 32.2 EBIT 376.9 399.7 22.8 + 6.0% Net interest income (expenses) - 37.2 - 40.2 - 3.0 Net income from associates 1
Slide 7: Revenues +6.7% vs 9M 2019
RESULTS Revenues +6.7% vs 9M 2019 9M 2020 €mn ** 7.5 -30.5 -10.7 103.7 -30.5 21.6 RAB growth limits negative impact of 978.0 916.9 resolution 570 9M 2019 570 resolution Other Toscana M&A Other Capital Gain 9M 2020 revenues impact regulated Energia* Carryover 9M 2019 revenues tariff components (RAB g
Slide 8: Results: revenues breakdown
RESULTS 9M 2020 9M 2019 9M 2020 Change €mn Regulated revenues 875.1 949.3 74.2 Of which Toscana Distribution 800.1 893.1 93.0 Energia 97.4 Tariff contribution for meters replacement 19.8 7.5 - 12.3 Other distribution revenues 55.2 48.7 - 6.5 Other revenues 41.8 28.7 - 13.1 TOTAL REVENUES 916.9 978.0
Slide 9: Operating expenses +2.4% vs 9M 2019
RESULTS Operating expenses +2.4% vs 9M 2019 9M 2020 €mn 3.7 -1.8 25.4 -21.2 Steep acceleration on efficiencies 256.2 -6% vs previous year 262.3 (like for like basis) 9M 2019 Toscana M&A TEE, Net 9M 2020 Operating Energia Carryover others Efficiencies Operating expenses expenses 9
Slide 10: Results: costs breakdown
RESULTS 9M 2020 9M 2019 9M 2020 Change €mn Distribution fixed costs 185.0 181.8 - 3.2 Net labour cost 104.5 104.4 - 0.1 Net external cost 80.5 77.4 - 3.1 Other activities 15.0 18.5 3.5 Net labour cost 1.3 2.4 1.1 Net external cost 13.7 16.1 2.4 Other costs 2.5 5.7 3.2 Tee 7.8 4.9 - 2.9 Concessions f
Slide 11: EBIT +6.0% vs 9M 2019
RESULTS Ebit +6.0% vs 9M 2019 9M 2020 €mn 55.0 -32.2 - Lower meters acc. D&A + Toscana Energia (32.9) + Higher RAB 376.9 399.7 Of which Toscana Energia 45.4 9M 2019 EBITDA D&A 9M 2020 EBIT EBIT 11
Slide 12: Net profit after minorities -6.1%
RESULTS Net Profit after minorities -6.1% vs 9M 2019 9M 2020 €mn Tax rate 27.8% -3.0 22.8 -16.0 -5.9 -14.0 Lower cost of debt but higher average debt 262.6 260.5 246.5 9M 2019 EBIT Net Net Income 9M 2020 Minorities 9M 2020 Net Financial Income from taxes Net Profit Net Profit Expenses associates bef
Slide 13: Cash flow
RESULTS Cash Flow 9M 2020 €mn -107.5 271.4 424.4 260.5 -562.6 -138.2 -10.7 -360.3 -211.4 Net Depreciation Change in Cash flow Net capex Free Cash Financial Dividends Change profit & other working from flow before investments and Others in Net items capital operation M&A Debt 13
Slide 14: Net invested capital and net financial debt
RESULTS 9M 2020 9M 2019 9M 2020 Change €mn Net invested capital 6,280.2 6,679.5 399.3 Fixed capital 6,335.0 6,597.4 262.4 Tangible fixed assets 350.0 356.8 6.8 Net intangible fixed assets 6,176.1 6,404.7 228.6 Net payables investments - 225.0 - 198.2 26.8 Equity-accounted and other investments 33.9
Slide 15: Appendix
APPENDIX 15
Slide 16: P&L quarterly
RESULTS P&L quartely 1Q 2020 2Q 2020 3Q 2020 4Q 2020 €mn Revenues 327.1 319.7 331.2 Operating expenses - 99.8 - 84.3 - 78.2 EBITDA 227.3 235.4 253.0 Depreciation & amortisation - 104.4 - 105.5 - 106.1 EBIT 122.9 129.9 146.9 Net interest income (expenses) - 13.4 - 13.0 - 13.8 Net income from associat
Slide 17: 3Q 2020 results
RESULTS 3Q 2020 3Q 2019 3Q 2020 Change €mn Revenues 307.5 331.2 23.7 Operating expenses - 80.7 - 78.2 2.5 EBITDA 226.8 253.0 26.2 Depreciation & amortisation - 91.5 - 106.1 - 14.6 EBIT 135.3 146.9 11.6 Net interest income (expenses) - 13.1 - 13.8 - 0.7 Net income from associates 5.4 0.2 - 5.2 EBT 12
Slide 18: 2016-2019 revenues, costs, EBITDA, EBIT
RESULTS Delta 2016 - 2019 € mln 2016 2017 2018 2019 2019 vs 2016 Revenues 1,077.9 1,124.2 1,178.1 1,257.9 +16.7% Operating Costs (416.3) (348.0) (338.6) (350.4) -15.8% EBITDA adjusted 684.4 781.2 842.0 907.5 +32.6% EBIT adjusted 358.8 422.9 456.0 516.0 +43.8% 18
Slide 19: 2016-2019 net income, cash flow, net debt
RESULTS 2016 - 2019 Variazione € mn 2016 2017 2018 2019 2019 vs 2016 Net Income (*) 221.1 296.4 315.5 345.2 +56.1% Operating Cash Flow 498.5 (*) 549.4 718.7 697.2 +39.9% Net debt(**) 3,617.4 3,720.3 3,814.3 4,410.6 +21.9% (*) Adjusted 19 (**) Excluding financial charges ex IFRS 16 in 2018 and 2019
Slide 20: 2016-2019 capex, RAB, leverage, dividends
RESULTS Variazione 2016 - 2019 € mln 2016 2017 2018 2019 2019 vs 2016 Capex 378.0 521.9 522.7 740,0 +95.8% RAB €6.0bn €6.1bn €6.4bn €7.4bn +23.0% Leverage (*) 59.0% 59.4% 58.7% 60.6% Total Dividends 161.8 168.3 189.3 207.1 +28.0% (*) including IFRS 16, TFR in debt and work in progress in RAB 20
Slide 21: Disclaimer
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 compan
Slide 22: IR contacts
IR contacts Anna Maria Scaglia Armando Iobbi Investor.relations@Italgas.it