Italgas Spa · MIL:IG
Italgas Spa — Q1 2024 Earnings Presentation
27 slides from Italgas Spa's earnings presentation, May 14, 2024
Slide 1: 1Q 2024 Results
1Q 2024 Results 14.05.2024 Milan
Slide 2: 2i Rete Gas exclusivity period granted
2i Rete Gas exclusivity Exclusivity period granted to Italgas by 2i Rete Gas’ shareholders for the acquisition period granted of 100% of the share capital. Strategic rationale 2023 Key Data1 ü Reinforcement of Italgas’ position as leading €mn distribution player in Europe at support of the Revenues
Slide 3: 1Q 2024 Results
G Italgas y 1Q 2024 Results
Slide 4: 1Q 2024 Results key highlights
1Q 2024 Results Double digit growth in EBIT and Net Income, reflecting solid contribution from distribution, key highlights with regulation recovering inflation and rates in Italy. End of Superbonus weighs on ESCo business. Positive impact of Resolution 173/2024 on 2024 tariffs yet to be incorporate
Slide 5: 1Q 2024 key highlights: cash flow and net debt
1Q 2024 Results Cashflow improved materially versus 1Q 2023, which was impacted by VAT and key highlights Superbonus. Net Debt dropped as a result. 342.2 175.1 160.9 Operating 107.2 1Q 2023 >x3 Capex -8.1% 1Q 2023 1Q 2024 1Q 2024 Cash Flow 2023 1Q € mn € mn 6,555.2 6,452.1 Net Debt ex -103 1Q 2024 F
Slide 6: Capex 1Q 2024
1Q 2024 Results capex 1Q 2024 €160.9mn, -8.1% vs 1Q 2023 Other2 €11.4mn Digitization1 €42.5mn Capex set to recover and accelerate during the year 175km of network pipes laid, of which 98km in Greece Development and repurposing €107.0mn Note: capex including IFRS 16; (1) includes metering (2) ICT, Re
Slide 7: Main physical data
1Q 2024 Results main physical data GAS DISTRIBUTION SECTOR OPERATING HIGHLIGHTS1 OPERATING HIGHLIGHTS o/w ITALY including affiliates2 (TOTAL) including affiliates o/w GREECE Network length 83,161 km 75,142 km 8,019 km ~9,000 km Active Redelivery Points / Clients3 8.02 mln 7.41 mln 0.61 mln 6.2 mln3
Slide 8: Regulatory development update
Regulatory development Resolution 173/2024 sets updated deflator assumptions for 2024 tariffs update ARERA acknowledged the significance of the reviews of the deflator time series made by ISTAT Deflator applied to calculate 20241 tariffs upgraded to 5.3% with equivalent positive impact on end 2023 R
Slide 9: ESG environment: net energy consumption
1Q 2024 Results ESG Net energy consumption -14.2% vs 1Q 2023 environment of which -11.0 TJ from positive impact from efficiencies in industrial auto-consumption processes 172.3 -12.6 -6.3 -5.5 0.0 147.9 Gas1 consumption Electricity1 Thermal Vehicles consumption energy Net energy consumption fleet op
Slide 10: ESG environment: Scope and emissions
1Q 2024 Results ESG Scope 1 and 2 Emissions -4.0% vs 1Q 2023 environment 30,902km1 surveyed in 1Q 2024 (+16.2% vs 1Q 2023) 24.7 1.0 -0.8 -0.6 Gas leaks -0.4 23.7 -0.2 Gas leaked/km surveyed Gas leaks higher Gas2 unchanged consumption GWP GWP Vehicles Scope 1 and 2 used to estimate methane emissions
Slide 11: Total Revenues -10.1% vs 1Q 2023
1Q 2024 Results Total Revenues -10.1% vs 1Q 2023 Regulated revenues from gas distribution +11.2% vs 1Q 2023 €mn 11.9 1.5 20.6 18.8 -96.4 -5.0 of which 14.6mn deflator and inflation recovery impact 479.9 431.3 1Q 2023 Italy Italy Enaon Acqua Geoside Other revenues 1Q 2024 Revenues WACC other regulate
Slide 12: Operating expenses -42.2% vs 1Q 2023
1Q 2024 Results Operating expenses -42.2% vs 1Q 2023 €mn -6.2 -0.4 -76.5 6.0 182.7 105.6 1Q 2023 Like for like Disposals Geoside Acqua 1Q 2024 Operating efficiencies and Campania* Operating Expenses others Expenses 12 Note: (*) Acqua Campania consolidated starting from 30th January 2024;
Slide 13: EBITDA +9.6% vs 1Q 2023
1Q 2024 Results EBITDA +9.6% vs 1Q 2023 €mn 325.7 297.2 0.8 -14.4 42.1 Geoside & Water 6.0 Enaon (Greece) 30.5 Italy distribution mainly 289.2 1Q 2023 Italy Enaon Geoside and 1Q 2024 Adj EBITDA distribution (Greece) Water Adj EBITDA mainly 13 Note: Acqua Campania consolidated starting from 30th Janu
Slide 14: EBIT +11.7% vs 1Q 2023
1Q 2024 Results Ebit +11.7% vs 1Q 2023 €mn -3.9 1.4 22.7 192.7 172.5 1Q 2023 Change Change Acqua 1Q 2024 EBIT EBITDA D&A Campania* EBIT 14 Note: (*) Acqua Campania consolidated starting from 30th January 2024;
Slide 15: Net Profit +13.5% vs 1Q 2023
1Q 2024 Results Net Profit1 +13.5% vs 1Q 2023 Siciliacque and Acqualatina tax rate 26.5% €mn consolidation -6.1 3.4 -4.1 20.2 -7.7 8.3 mix of new debt instruments and higher financial income 125.3 117.6 103.6 111.9 1Q 2023 Minorities 1Q 2023 EBIT Net Net Income Income 1Q 2024 Minorities 1Q 2024 Net
Slide 16: P&L 1Q 2023 vs 1Q 2024
1Q 2024 Results 1Q 2023 1Q 2024 Change P&L, € mln Total Revenues 479.9 431.3 - 48.6 Operating expenses - 182.7 - 105.6 77.1 EBITDA 297.2 325.7 28.5 + 9.6% Depreciation & amortisation - 124.7 - 133.0 - 8.3 EBIT 172.5 192.7 20.2 + 11.7% Net interest income (expenses) - 19.9 - 26.0 - 6.1 Net income fro
Slide 17: Focus on water
1Q 2024 Results focus on water 1Q 2024 1Q 2024 pro quota WATER P&L, € mln Total Revenues 14.2 41.1 Operating expenses - 8.6 - 27.6 Acqualatina e Siciliacque EBITDA 5.6 13.5 pro-quota Depreciation & amortisation - 4.6 - 7.6 EBIT 1.0 5.9 Net income from associates 3.7 NET PROFIT after minorities 3.4 3
Slide 18: Distribution operational cash flow recovered significantly
1Q 2024 Results Distribution Operational Cash Flow recovered significantly €mn 95.2 -201.4 121.7 342.2 -51.7 -1.1 125.3 140.8 88.0 Net profit Depreciation Change in Regulated Capex Free Cash Financial Shareholders' Change pre & other working Cash flow flow before investments equity in Net minorites
Slide 19: 1Q 2024 Financial Structure
1Q 2024 Financial Structure Maturities 31/03/2024 EIB Bonds Bank lines 1800 New €650mn bond issued in 1500 February replaced bond 1200 expired in March 900 Sound financial structure, with high 600 exposure to fixed rates 300 1Q new €650mn bond and new 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2
Slide 20: Q&A
Q&A 20
Slide 21: Revenues table 1Q 2023 vs 1Q 2024
1Q 2024 Results 1Q 2023 1Q 2024 Change REVENUES, € mln Regulated revenues Italy distribution 319.5 358.1 38.6 Distribution 300.5 338.8 38.3 Tariff contribution for meters replacement - 0.7 0.7 Other distribution revenues 19.0 18.7 - 0.3 Enaon (Greece) 44.0 45.5 1.5 Other revenues 116.4 27.7 - 88.7 T
Slide 22: Operating expenses table
1Q 2024 Results 1Q 2023 1Q 2024 Change OPERATING EXPENSES, € mln Distribution fixed costs Italy+Greece 72.3 64.6 - 7.7 Net labour cost 43.7 38.5 - 5.2 Net external cost 28.7 26.1 - 2.6 Other activities 90.9 19.7 - 71.2 Net labour cost 1.8 3.2 1.4 Net external cost 89.1 16.5 - 72.6 Other costs 1.1 1.
Slide 23: Balance sheet
1Q 2024 Results Balance sheet 31/12/23 31/03/24 Change € mln Net invested capital 9,235.0 9,277.3 42.3 Fixed capital 8,421.4 8,611.1 189.7 Tangible fixed assets 386.0 400.4 14.4 Net intangible fixed assets 8,250.3 8,324.2 73.9 Net payables investments - 370.5 - 311.7 58.8 Equity-accounted and other
Slide 24: Sustainability performance
Sustainability performance Neglegible 100 A 5 A+ 100 AAA ESG Risk A 89 4,3 AA A- B A Low C+ 69 ESG Risk 2,7 53 39 High ESG Risk DJSI CDP Climate FTSE4Good ISS Moody's ESG MSCI Sustainalytics score Maximum score Italgas Sector Average 24 Note: based on most recent published rating
Slide 25: Vision, Purpose & Mission
Vision, Purpose & Mission Vision To be a leading figure in the world of energy, Purpose Pioneers by passion and builders by calling, we driving its sustainable evolution and innovating bring all our energy to accelerate the each day to improve people’s quality of life. ecological transition. We do i
Slide 26: Disclaimer
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
Slide 27: Investor Relations contact
Investor.relations@italgas.it Anna Maria Scaglia 27