Italgas Spa · MIL:IG
Italgas Spa — FY2020 Earnings Presentation
27 slides from Italgas Spa's earnings presentation, Mar 11, 2021
Slide 1: FY 2020 results
FY 2020 results Milan 11.03.2021
Slide 2: 2020 Main Takeaways
2020 MAIN TAKEAWAYS Covid impact contained, while ensuring safety of all our people and best in class network performance Numbers in line with targets New bonds issuance confirms attractiveness of our debt Sustainability effort recognised by ESG rating agencies resulting in indexes inclusion confirm
Slide 3: FY 2020 Results Key highlights
FY 2020 2020 targets met RESULTS Key highlights 1,333.8 971.4 1,257.9 907.5 FY 2020 FY 2020 Revenues +6.0% EBITDA +7.0% FY 2019 FY 2019 adj* adj* € mn € mn 546.8 345.2 345.4 516.0 FY 2020 FY 2020 Net EBIT +6.0% +0.1% FY 2019 FY 2019 Income adj* adj* € mn € mn 3 (*) Toscana Energia fully consolidated
Slide 4: FY 2020 Results Key highlights
FY 2020 RESULTS Key highlights 740.0 777.5 714.4 745.0 FY 2020 FY 2020 Operating Capex +5.1% +4.3% FY 2019 FY 2019 Cash Flow* € mn € mn Capex at new all time highs 4,485.3 4,736.5 Cashflow generation capacity confirmed FY 2020 Net Debt increased as a result of higher Net Debt + 251 capex and supply
Slide 5: Continuous effort to improve sustainability
FY 2020 Continuous effort to improve sustainability SUSTAINABILITY performance and accountability Key highlights ENVIRONMENT SOCIAL GOVERNANCE • Gas leakage rate* 0.1% • More than 20,000 hours training on • Sustainability KPIs in the • Energy intensity** -5.4% vs 2019 digitization topics remuneratio
Slide 6: Capex: FY 2020 marks a new record
CAPEX FY 2020 marks a new record 740.0 777.5 521.9 522.7 New record highs achieved in 378.0 2020, led by network capex growth and despite Covid19 impact €mn FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 6
Slide 7: Capex
CAPEX Mix changes, meters FY 2020 replacement plan €777.5mn* +5,1% yoy close to end Other 11% Metering 16% 905km new networks pipes of Development, which 334km in Sardinia maintenance 49% 1.22m new smart meters installed** Digitization 11% Sardinia 13% (*) including IFRS 16 7 (**) of which 0.79m rel
Slide 8: Results: Reported vs adjusted
RESULTS FY 2020 Reported vs FY 2020 FY 2020 adjusted reported adjusted €mn special items +108.4mn mainly related to depreciation of traditional Revenues 1,442.2 1,333.8 108.4 meters replaced with smart ones by 2019 Operating expenses - 414.3 - 362.4 - 51.9 - 38.5mn smart meters replacement fund prov
Slide 9: Results: Adjusted
RESULTS FY 2020 Adjusted FY 2019 FY 2020 adjusted adjusted Change €mn Revenues 1,257.9 1,333.8 75.9 Operating expenses - 350.4 - 362.4 - 12.0 EBITDA 907.5 971.4 63.9 + 7.0% Depreciation & amortisation - 391.5 - 424.6 - 33.1 EBIT 516.0 546.8 30.8 + 6.0% Net interest income (expenses) - 51.0 - 49.2 1.
Slide 10: Adjusted Revenues +6.0%
RESULTS Adjusted Revenues +6.0% vs FY 2019 FY 2020 Adjusted Impact of resolution 570 for Toscana Energia €mn €5.0mn 7.8 -7.2 -6.3 104.0 -40.6 18.2 RAB growth limits negative impact of 1,333.8 1,257.9 Resolution 570 FY 2019 570 resolution Other Toscana M&A Other Capital FY 2020 Adj. Revenues impact r
Slide 11: Results: Revenues breakdown
RESULTS FY 2020 Adjusted FY 2019 FY 2020 Change €mn adjusted adjusted Regulated revenues 1,206.9 1,285.9 79.0 Distribution 1,109.1 1,183.7 74.6 Tariff contribution for meters replacement 22.9 30.2 7.3 Other distribution revenues 74.9 72.0 - 2.9 Other revenues 51.0 47.9 - 3.1 TOTAL REVENUES 1,257.9 1
Slide 12: Adjusted Operating expenses +3.4%
RESULTS Adjusted Operating expenses +3.4% vs FY 2019 FY 2020 Adjusted €mn 3.7 -1.8 -20.5 30.7 -6% vs previous year (like for like basis) 350.4 362.4 FY 2019 Toscana M&A TEE, Net FY 2020 Adj. Operating Energia Carryover Others Efficiencies Adj. Operating Expenses Expenses 12 (*) Net of change of inte
Slide 13: Results: Operating costs
RESULTS FY 2020 Adjusted FY 2019 FY 2020 adjusted adjusted Change €mn Distribution fixed costs 254.7 258.1 3.4 Net labour cost 144.1 145.3 1.2 Net external cost 110.6 112.8 2.2 Other activities 22.9 24.9 2.0 Net labour cost 2.1 3.6 1.5 Net external cost 20.8 21.3 0.5 Other costs 2.2 6.4 4.2 Tee 7.8
Slide 14: Adjusted EBIT +6.0%
RESULTS Adjusted Ebit +6.0% vs FY 2019 FY 2020 Adjusted €mn 63.9 -33.1 - Lower smart meters acc. D&A + Toscana Energia + New capex 546.8 516.0 FY 2019 Change Change FY 2020 Adj. EBIT Adj. EBITDA D&A Adj. EBIT 14
Slide 15: Adjusted Net Profit after minorities
RESULTS Adjusted Net Profit after minorities in line with FY 2019 FY 2020 Adjusted €mn Tax rate adjusted 27% 1.8 -13.4 30.8 -6.8 -18.6 Lower cost of debt Higher average debt 351.6 364.0 345.4 FY 2019 EBIT Net Net Income FY 2020 Minorities FY 2020 Adj Net Financial Income from taxes Adj. Net Profit A
Slide 16: Results: Cash Flow
RESULTS Cash Flow FY 2020 Of which –61mn due to revenues special items with no cash impact -76.4 Of which +38mn due to 417.8 costs special items with no cash impact 745.0 -770.7 403.6 -25.7 €mn -14.1 -211.4 -251.2 Net Depreciation Change in Cash flow Net capex* Free Cash Financial Dividends Change p
Slide 17: Financial Strategy
FINANCIAL Debt Maturities post refinancing exercise of February 2021 EIB STRATEGY Bond A key source of 900 New Bonds Bonds buyback value creation 600 300 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 beyond 2033 Limited refinancing and liquidity needs FY 2020 Gross Debt Structur
Slide 18: Results: Balance sheet
RESULTS FY 2020 FY 2019 FY 2020 Change €mn Net invested capital 6,280.2 6,717.5 437.3 Fixed capital 6,335.0 6,712.3 377.3 Tangible fixed assets 350.0 369.9 19.9 Net intangible fixed assets 6,176.1 6,516.6 340.5 Net payables investments - 225.0 - 208.6 16.4 Equity-accounted and other investments 33.9
Slide 19: Shareholders' Remuneration
SHAREHOLDERS’ REMUNERATION Allows investors to keep benefitting from underlying growth & efficiencies delivering additional value 0.277 0.256 0.234 Dividend proposal 65% payout implies 8.2% growth vs 2019 and 18.4% growth vs 2018 FY 2018 FY 2019 FY 2020 DPS (€) 19 Dividend to be paid on 26 May 2021
Slide 20: Appendix
APPENDIX 20
Slide 21: Results: Reported and adjusted
RESULTS FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 reported reported adjusted adjusted Change* €mn Revenues 1,257.9 1,442.2 1,257.9 1,333.8 75.9 Operating expenses - 350.4 - 414.3 - 350.4 - 362.4 - 12.0 EBITDA 907.5 1,027.9 907.5 971.4 63.9 Depreciation & amortisation - 391.5 - 424.6 - 391.5 - 424.6 -
Slide 22: Results: Reported
RESULTS FY 2020 Reported FY 2019 FY 2020 Change €mn reported reported Of which special items 2020 +108.4mn mainly related to depreciation of traditional Revenues 1,257.9 1,442.2 184.3 meters replaced with smart ones by 2019 Operating expenses - 350.4 - 414.3 - 63.9 2020 -51.9mn mainly severance plan
Slide 23: Results: P&L quarterly
RESULTS P&L quarterly adjusted numbers 1Q 2020 2Q 2020 3Q 2020 4Q 2020 €mn Revenues 327.1 319.7 331.2 355.8 Operating expenses - 99.8 - 84.3 - 78.2 - 100.1 EBITDA 227.3 235.4 253.0 255.7 Depreciation & amortisation - 104.4 - 105.5 - 106.1 - 108.6 EBIT 122.9 129.9 146.9 147.1 Net interest income (exp
Slide 24: Results: 4Q 2020
RESULTS 4Q 2020 adjusted numbers 4Q 2019 4Q 2020 Change €mn Revenues 341.0 355.8 14.8 Operating expenses - 94.2 - 100.1 - 5.9 EBITDA 246.8 255.7 8.9 Depreciation & amortisation - 107.7 - 108.6 - 0.9 EBIT 139.1 147.1 8.0 Net interest income (expenses) - 13.8 - 9.0 4.8 Net income from associates - 2.3
Slide 25: The Leading Gas Distributor in Italy
THE LEADING GAS DISTRIBUTOR in ITALY OPERATING OF WHICH HIGHLIGHTS Consolidated companies AFFILIATES (TOTAL) Subsidiaries Network length 73,058 km 1,873 km Municipalities 1,887 61 Redelivery Points 7.749 mn 0.154 mn Market Share(1) 35% 0.1% Employees 4,029 44 25
Slide 26: 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 27: IR contacts
IR contacts Anna Maria Scaglia Armando Iobbi Investor.relations@Italgas.it