Italgas SpA · MIL:IG
Italgas SpA — Q1 2022 Earnings Presentation
22 slides from Italgas SpA's earnings presentation, May 2, 2022
Slide 1: 1Q 2022 Results
1Q 2022 RESULTS Milan 02.05.2022
Slide 2: Key Highlights
Strong start of the year led by RAB and ESCOs growth and 1Q 2022 despite negative regulatory impacts from lower WACC and RESULTS DL570 (€ 15.7 mn). KEY HIGHLIGHTS Margin increase led by ongoing cost efficiencies in distribution 333.3 354.0 250.0 234.4 Revenues +6.2% EBITDA +6.7% 1Q 2022 1Q 2022 1Q 2
Slide 3: Key Highlights: Capex, Cash Flow, Net Debt
1Q 2022 RESULTS KEY HIGHLIGHTS 206.7 309.0 179.5 198.8 Operating Capex -13.2% -35.7% 1Q 2022 1Q 2022 1Q 2021 1Q 2021 Cash Flow € mn € mn Capex reduction year-on-year as anticipated, 4,910.0 4,888.1 also considering achieved Sardinia’s network development Cashflow generation reflects 1Q working -22 N
Slide 4: Capex
CAPEX IN LINE WITH 1Q 2022 EXPECTATIONS €179.5mn -13.2% yoy Other €8.8mn Digitization1 €51.9mn 128km new networks pipes of which 6km in Sardinia Additional 6 new small scale LNG storage and regasification Development and plants installed in Sardinia3 repurposing Sardinia2 €111.1mn 117k smart meters
Slide 5: ESG: GHG Emissions
1Q 2022 RESULTS ESG GHG EMISSIONS - 20,745 km inspected (+49.7%) - Emissions trend (-6%) aligned to km travelled - Gas leaked / km surveyed: 44.8 smc/km (-17.9%) (-6%) - Gas leaked / gas distributed: 0.024% (+13.0%) - Operative bi-fuel fleet: 92% CNG fuelled +3.0 24.3 -0.8 -0.1 0.0 26.4 Gas Vehicles
Slide 6: ESG: Net Energy Consumption
1Q 2022 RESULTS ESG NET ENERGY CONSUMPTION of which -10.8 TJ from -6% km travelled Mainly related to Italgas Acqua efficiencies in industrial -7% energy consumption processes, mainly pre-heating 224.5 -1.2 208.3 -12.5 0.0 -2.5 Electricity Thermal energy civil use Civil and Net energy industrial Vehi
Slide 7: Results: P&L
RESULTS 1Q 2022 1Q 2021 1Q 2022 Change adjusted* P&L, € mln Total Revenues 333.3 354.0 20.7 Operating expenses - 98.9 - 104.0 - 5.1 EBITDA 234.4 250.0 15.6 + 6.7% Depreciation & amortisation - 104.5 - 108.1 - 3.6 EBIT 129.9 141.9 12.0 + 9.2% Net interest income (expenses) - 13.6 - 14.0 - 0.4 Net inc
Slide 8: Revenues bridge
RESULTS Revenues +6.2% vs 1Q 2021 1Q 2022 of which €13.6mn €mn WACC review 23.4 -15.7 -2.6 2.3 1.6 11.7 Mainly due to ESCOs of which €10mn RAB increase* 354.0 333.3 1Q 2021 RAB growth Previous Other Other WACC review Tariff 1Q 2022 Revenues & tariff year tariff regulated revenues & contribution Reve
Slide 9: Revenues breakdown
RESULTS 1Q 2022 1Q 2021 1Q 2022 Change REVENUES, € mln Regulated revenues 321.0 318.3 - 2.7 Distribution 298.0 296.3 - 1.7 Tariff contribution for meters replacement 3.3 0.7 - 2.6 Other distribution revenues 19.7 21.3 1.6 Other revenues 12.3 35.7 23.4 TOTAL REVENUES 333.3 354.0 20.7 9
Slide 10: Operating expenses bridge
RESULTS Operating expenses +5.2% vs 1Q 2021 1Q 2022 €mn -0.4 -8.5 14.0 -8.6% vs 1Q 2021 98.9 104.0 1Q 2021 Like for like ESCO businesses TEE 1Q 2022 Operating efficiencies Operating Expenses Expenses 10
Slide 11: Operating expenses breakdown
RESULTS 1Q 2022 1Q 2021 1Q 2022 Change OPERATING EXPENSES, € mln Distribution fixed costs 68.1 59.7 - 8.4 Net labour cost 39.0 38.2 - 0.8 Net external cost 29.1 21.5 - 7.6 Other activities 9.5 27.3 17.8 Net labour cost 1.1 1.8 0.8 Net external cost 8.4 25.5 17.1 Other costs 0.9 - 2.6 - 3.5 Tee 3.0 2
Slide 12: EBIT bridge
RESULTS Ebit +9.2% vs 1Q 2021 1Q 2022 €mn -3.6 15.6 Higher D&A due to new capex 141.9 129.9 1Q 2021 Change Change 1Q 2022 EBIT EBITDA D&A EBIT 12
Slide 13: Adjusted Net Profit bridge
RESULTS Adjusted Net Profit +9.5% vs 1Q 2021 1Q 2022 €mn Tax rate adjusted 26.9% -0.4 -0.3 -3.5 12.0 -4.8 Higher average gross debt 85.9 93.7 88.9 1Q 2021 EBIT Adj. Net Net Income Adj. Income 1Q 2022 Minorities 1Q 2022 Adj Net Financial from taxes Adj. Net Profit Adj. Net Profit Expenses associates
Slide 14: Cash Flow
RESULTS Cash Flow 1Q 2022 €mn 10.2 94.9 198.8 -177.3 93.7 21.6 3.5 0.2 25.3 Net Depreciation Change in Cash flow Net capex* Free Cash Financial Shareholders' Change profit & other working from flow before investments equity & others in Net items* capital operations M&A* and disposals Debt 14 (*) inc
Slide 15: Financial Strategy: Debt Maturities
FINANCIAL Debt Maturities 31/03/2022 STRATEGY EIB Bond A KEY SOURCE OF 900 Term loans VALUE CREATION 600 300 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 beyond 2033 Liquidity buffer of €1.25bn Q1 2022 Gross Debt Structure Institutional Best in class cost of debt of <1% Lenders (EIB
Slide 16: Balance Sheet
RESULTS 1Q 2022 BALANCE SHEET 31/12/21 31/03/22 Change € mln Net invested capital 7,122.5 7,207.4 84.9 Fixed capital 7,106.2 6,957.2 - 149.0 Tangible fixed assets 372.1 363.9 - 8.2 Net intangible fixed assets 6,938.1 6,778.2 - 159.9 Net payables investments - 241.9 - 236.7 5.2 Equity-accounted and o
Slide 17: Conclusions
RESULTS 1Q 2022 CONCLUSIONS Strong top line growth led by RAB increase and ESCOs despite multiple negative regulatory impacts Cost efficiencies continue, driven by digitization Partnership with Edison in Gaxa to strengthen commercial effort and acquisition of stake in Picarro Closing of Depa Infrast
Slide 18: Q&A
RESULTS 1Q 2022 Q&A 18
Slide 19: Appendix
APPENDIX 19
Slide 20: Main Numbers
MAIN NUMBERS OPERATING OF WHICH HIGHLIGHTS AFFILIATES (TOTAL) Network length 74,473 km 1,897 km Municipalities 1,899 61 Active Redelivery Points 7.749 mn 0.159 mn Subsidiaries Controlled companies 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