Italgas Spa · MIL:IG
Italgas Spa — Q1 2020 Earnings Presentation
23 slides from Italgas Spa's earnings presentation, Apr 29, 2020
Slide 1: 1Q 2020 Consolidated Results
1Q 2020 Consolidated Results 29th April 2020, Milan
Slide 2: 1Q 2020 solid start despite more difficult comps
1Q 2020 solid start despite more difficult comps vs 1Q 2019 vs 1Q 2019 € mn ▪ Operating Cash ▪ Revenues €327.1 5.2% Flow €174.2 -28% ▪ EBITDA €227.3 3.7% ▪ Capex €206.0 35% ▪ Consolidated +40 ▪ EBIT €122.9 -0.6% Net Debt** €4,450.5 mn* ▪ Net Profit after minorities €74.9 -13% (*) versus 31/12/2019 (
Slide 3: Ongoing capex growth, more focused on networks
Ongoing capex growth, more focused on networks Other 10% Sardinia 20% ~ 285,000 new Metering Total network capex smart meters 15% 75% of the total installed* €206 mn Capex up +86% Capex down 30% 310 km of new lines as meter +35.2% yoy built of which 165 replacement km in Sardinia in 1Q programme nea
Slide 4: Covid-19 impact on our activities
Covid-19 impact on our activities ✓ Immediate set up of an Emergency Agile Team ✓ Ensured safety and full operation of the network ✓ Digital tools adoption boosted, onsite work reorganised Ongoing ✓ Stop by law of non-essential activities starting from March 22 dialogue ✓ Progressive slow down of me
Slide 5: Covid-19 focus on people
Covid-19 focus on people ✓ Smart working implemented for all employees where possible ✓ Special health insurance established covering employees eventually affected by Covid-19 Attention ✓ Incremental attention to personnel with special health to our people conditions and ✓ Commitment to employment,
Slide 6: Covid-19: an unprecedented disruption in operations…
Covid-19: an unprecedented disruption in operations… 20% -38% prioritized interventions, reduction in Emergency Calls1 requiring a with additional safety measures boost in sensing technology and (for employees and customers) communication with customer +27% 5-7% success rate of critical intervention
Slide 7: … with a significant part of the business operated through remote working
… with a significant part of the business operated through remote working 4,000+ 4,000+ 11x employees’ way of working personnel with iPhones and/or laptop connections from home progressively re-designed in the iPad and/or PC (not including iPhone/iPad Digital Factory to allow connections) remotizati
Slide 8: Income Statement
Income Statement 2019 2020 1st Quarter 1st Quarter Change €mn Revenues 310.8 327.1 16.3 Operating expenses - 91.6 - 99.8 - 8.2 EBITDA 219.2 227.3 8.1 3.7% Depreciation & amortisation - 95.6 - 104.4 - 8.8 EBIT 123.6 122.9 - 0.7 -0.6% Net interest income (expenses) - 12.2 - 13.4 - 1.2 Net income from
Slide 9: Consolidated Revenues
Consolidated Revenues €mn 2019 2020 1st Quarter 1st Quarter Change Regulated revenues 290.5 315.3 24.8 Distribution 263.2 294.9 31.7 Tariff contribution for meters replacement 8.7 2.5 - 6.2 Other distribution revenues 18.6 17.9 - 0.7 Other revenues 20.3 11.8 - 8.5 TOTAL REVENUES 310.8 327.1 16.3 9 /
Slide 10: Consolidated Revenues, +5.2% vs 1Q 2019
Consolidated Revenues, +5.2% vs 1Q 2019 €mn 6.6 (6.4) (4.1) 34.3 (9.2) (10.1) 5.2 RAB growth limits 327.1 310.8 negative impact of resolution 570 1Q 2019 570 Other Toscana Carryover Meters Other Capital 1Q 2020 revenues resolution regulated Energia M&A replacement Gain revenues impact tariff impact
Slide 11: Consolidated Opex
Consolidated Opex €mn 2019 2020 1st Quarter 1st Quarter Change Distribution fixed costs 63.4 67.8 4.4 Net labour cost 33.8 37.5 3.7 Net external cost 29.6 30.3 0.7 Other activities 6.0 8.1 2.1 Net labour cost 0.4 0.9 0.5 Net external cost 5.6 7.2 1.6 Other costs 0.4 2.0 1.6 Tee 7.8 4.9 - 2.9 Concess
Slide 12: Consolidated Opex, +9.0% vs 1Q 2019
Consolidated Opex, +9.0% vs 1Q 2019 €mn 3.2 (1.9) (2.5) 9.4 Keep focusing on efficiencies -2,7% vs previous year 99.8 91.6 Operating Toscana Carryover TEE, Net Operating Expenses Energia M&A donations Efficiencies Expenses 1Q 2019 1Q 2020 12 /
Slide 13: Consolidated Ebit, -0.6% vs 1Q 2019
Consolidated Ebit, -0.6% vs 1Q 2019 €mn 8.1 (8.8) - Lower smart meters acc. D&A + Toscana Energia + Higher RAB 123.6 122.9 Ebit 1Q 2019 Ebitda D&A Ebit 1Q 2020 13 /
Slide 14: Net profit after minorities, -13.2% vs 2019
Net profit after minorities, -13.2% vs 2019 27% tax rate €mn (0.7) (1.2) (4.9) 1.0 (5.6) Higher average debt Lower average cost 86.3 80.5 74.9 Net Profit Ebit Net Income Income Net Profit Of which Net Profit 1Q 2019 Financial from Taxes on 1Q 2020 minorities after Expenses Associates EBT minorities
Slide 15: Consolidated Cash Flow
Consolidated Cash Flow €mn (2.4) 35% higher capex 96.1 174.2 (207.8) 80.5 (33.6) (39.9) (6.3) Net Profit Depreciation Change in Cash flow Net capex Free Cash flow M&A Change in Net & other items working from operation before M&A Debt capital 15 /
Slide 16: Strong debt structure
Strong debt structure First bond repayment in 2022 Low exposure to interest rates 900 800 700 Floating Fix 600 12% 88% 500 400 300 200 100 0 Bonds Institutional Lenders Financing 71% (EIB) 19% Net debt €4.45bn* Cost of debt: ~1.1% Banking lines Cash deposits €0.2bn 10% Undrawn committed funds €0.5bn
Slide 17: Balance sheet
Balance sheet €mn 2019 2020 Change Dec, 31st Mar, 31st Net invested capital 6,280.2 6,399.0 118.8 Fixed capital 6,335.0 6,452.7 117.7 Tangible fixed assets 350.0 352.7 2.7 Net intangible fixed assets 6,176.1 6,279.5 103.4 Net payables investments - 225.0 - 214.3 10.7 Equity-accounted and other inves
Slide 18: Closing remarks
Closing remarks Organic Capex and M&A Working at restart plan to ensure Digital Transformation ✓ full operation of our networks ✓ capex execution ✓ safety of all our people and suppliers Operational ✓ value creation for our shareholders excellence is playing a central role Digital Transformation Sol
Slide 19: Q&A
WG italgas Q&A
Slide 20: Annexes
WG italgas Annexes
Slide 21: The leading Italian natural gas distributor
The leading Italgas Italian natural gas distributor in Italy Base line Of w affiliates Network length 71,981 km 1,260 km Municipalities 1,839 14 Redelivery Points1 7,706 mn 0.121 mn Market Share2 35% 0.1% Employees 4,140 44 Note: (1) Active (2) Calculated by redelivery points 21 /
Slide 22: 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 23: IR contacts
ir contacts Anna Maria Scaglia Armando Iobbi investor.relations@italgas.it