Slide 1: 1H 2023 Consolidated Results
energy to inspire the world 1H 2023 Consolidated Results July 27th, 2023 1
Slide 2: 1H 2023 key highlights
1H 2023 key highlights GAS MARKET FINANCIAL HIGHLIGHTS • 1H 2023 Italian gas demand stood at 32.7 bcm • €1,221m Adj. EBITDA (+5.7% yoy) (-16.4% YoY(1)) • €621m Adj. Net profit (-3.9% yoy) (2) • Average TTF at €44/MWh in H1 2023 (-55% yoy) • €734m of Investments (-23% yoy) with high volatility • €14.
Slide 3: 1H 2023 key achievements
1H 2023 key achievements SECURITY OF SUPPLY ENERGY TRANSITION • Golar Tundra started operations in July in Piombino • Political support to South H2 Corridor reiterated • Storage level ca 87% • H2 readiness: 1,513 km of pipelines certified by RINA (+750 km vs FY 2022) • Adriatic Line recognized as st
Slide 4: Strategic Plan tracking
Strategic Plan tracking • Output based incentives on fully depreciated assets approved Transport • Adriatic Line approved, eligible for RePower EU funds and deemed strategic infrastructure • Progressing on replacements, H2 readiness roadmap and leak detection and repair program • South H2 corridor d
Slide 5: 1H 2023 gas demand and flows
1H 2023 gas demand and flows Italian gas demand 1H 2023 Gas flows 1H 2023 Passo Gries -16.4% Tarvisio 39,160 Rovigo 32,722 Adriatic LNG Volumes from north Buildings 16,448 Panigaglia down by (100% Snam) 6.6 bcm yoy 13,726 -16.5% Livorno OLT Piombino Industry 6,485 LNG volumes up energy to inspire th
Slide 6: Gas storage volumes evolution
Gas storage volumes evolution bcm Level of gas at the end of July (1) Current Total ~ 87% stock Last 5Y average ~ 78% total stock Previous year ~ 70% total stock energy to inspire the world 1. Including strategic storage. Decrease in supply risk for next winter but gas market remains tight 6
Slide 7: Adj. EBITDA analysis
Adj. EBITDA analysis • Tariff RAB growth Mainly Energy Efficiency €m • Output based incentives for fully depreciated assets and flexibility services 1,221 1,155 45 Energy 19 Transition(1) • Positive one off in Q1 2022 (gas sale) • Expiry of TLC lease 1,176 Gas 1,136 energy to inspire the world Infra
Slide 8: Adj. Net Income analysis
Adj. Net Income analysis €m 646 621 New assets entering Average gross cost Lower contribution of TAG into operation of debt ca 1.7% partially offset by SeaCorridor and Desfa energy to inspire the world 8
Slide 9: International associates contribution to H1 2023 Adjusted Net Income
International associates contribution to H1 2023 Adjusted Net Income Yoy change in net profit contribution (€m) • Acquisition completed in Jan 2023 +€23 m • Strategic import route for Italy: approx. 11 bcm in H1 2023 (first import source) • Strong performance driven by higher volumes (LNG imports an
Slide 10: Cash flow
Cash flow €m • Reversal of the positive Working Capital related to balancing activities at the end 2022 • Absorption from energy efficiency fiscal credit (1,368) energy to inspire the world -1,746 SeaCorridor -1,024 -1,743 • - €409m SeaCorridor cash out • + €144m De Nora cash in • - €759m net capex
Slide 11: Net Debt evolution and financial structure
Net Debt evolution and financial structure Net debt evolution (€bn) Maturities profile 2.7 14.6 (bn€, amount drawn) 1 11.9 2,0 1.6 1,5 1,0 0,5 0,0 2H 2023 2024 2025 2026 2027 24-27 AVG Bonds Banking facilities energy to inspire the world Sustainable Finance on Committed financing (bn€) Average ~75%
Slide 12: Closing remarks
Closing remarks Solid results in a volatile environment FY 2023 Guidance confirmed Stronger gas system to face winter 2023/2024 energy to inspire the world need to continue building a more resilient energy system EU and Italian policy support Sound progress and delivery on key strategic milestone 12
Slide 13: energy to inspire the world
energy to inspire the world 13
Slide 14: energy to inspire the world
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Slide 15: Income Statement
Income Statement € mn 1H 2022 1H 2023 Change Change % Revenues 1,680 2,094 414 24.6% Operating expenses (525) (873) (348) 66.3% EBITDA ADJUSTED 1,155 1,221 66 5.7% Depreciation & amortisation (427) (455) (28) 6.6% EBIT ADJUSTED 728 766 38 5.2% Net interest income (expenses) (51) (87) (36) 70.6% Net
Slide 16: Revenues
Revenues € mn 1H 2022 1H 2023 Change Change % Regulated revenues 1,338 1,529 191 14.3% Transport 1,076 1,239 163 15.1% Storage 249 253 4 1.6% LNG 13 37 24 - Non regulated revenues(1) 66 44 (22) (33.3%) Total Gas Infrastructure Businesses revenues 1,404 1,573 169 12.0% Energy Transition Businesses re
Slide 17: Operating Costs
Operating Costs € mn 1H 2022 1H 2023 Change Change % Gas Infrastructure Businesses costs 268 397 129 48.1% Variable costs 64 133 69 - Fixed costs 146 148 2 1.4% Other costs 58 116 58 - Energy Transition Businesses costs (1) 257 476 219 85.2% TOTAL COSTS 525 873 348 66.3% 1. In line with the 2022-202
Slide 18: Balance Sheet
Balance Sheet € mn 2022 1H 2023 Change Change % Net invested capital 19,447 22,289 2,842 14.6% Fixed capital 21,562 22,257 695 3.2% Tangible fixed assets 18,222 18,483 261 1.4% Intangible fixed assets 1,321 1,356 35 2.6% Equity-accounted investments 2,313 2,953 640 27.7% Other Financial assets 175 1
Slide 19: Investments detailed by business
Investments detailed by business €mn 1H2022 1H2023 Transport(1) 434 471 Storage 60 91 LNG(2) 345 103 Energy Transition(3) 116 69 Total 955 734 1. Including corporate capex. 2. Including greenture (SSLNG and mobility) investments. 3. Including Biomethane acquisitions. 37% taxonomy aligned and 56% SDG
Slide 20: ESG Scorecard – H1 2023
ESG Scorecard – H1 2023 Environment Social Governance H1 Target H1 Target H1 Target 2023 2023 2023 2023 2023 2023 1 % reduction of NG emissions vs 2015 -53%1 -48.6% % participation in Average annual customers 9 welfare initiative 34% 54% 17 satisfaction rate in terms of -* 8.1 % NG recovered from ma
Slide 21: Gas injection details
Gas injection details Gas injection details Change Change bcm 1H 2022 1H 2023 (bcm) (%) National production 1.5 1.4 -0.1 -7.2% Pipelines 30.8 24.2 -6.7 -21.6% Gela 1.2 1.4 0.2 15.6% Mazara del Vallo 11.5 11.4 -0.2 -1.3% Passo Gries 3.8 4.3 0.5 14.2% Tarvisio 9.3 2.2 -7.1 -76.5% Gorizia 0.0 0.0 0.0 1
Slide 22: Disclaimer
Disclaimer Luca Oglialoro, 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 accounting information disclosures herewith set forth correspond to the company’s evidenc
Slide 23: energy to inspire the world
energy to inspire the world Detail of a cooling unit of a vaporizer. Snam regasification plant, Panigaglia, 2022. Photograph by 23 Carlo Valsecchi