Italgas Spa · MIL:IG
Italgas Spa — H1 2021 Earnings Presentation
25 slides from Italgas Spa's earnings presentation, Jul 27, 2021
Slide 1: 1H 2021 Results
1H 2021 RESULTS Milan 27.07.2021
Slide 2: Key Highlights
Despite the DL570 effects, 1H 2021 strong and accelerating growth led by RAB increase, service to RESULTS clients and costs control KEY HIGHLIGHTS 665.4 489.1 646.8 461.8 Revenues +2.9% +5.9% 1H 2020 1H 2021 1H 2020 1H 2021 EBITDA € mn € mn 176.1 279.4 154.3 254.0 EBIT +10.0% Net Income +14.1% 1H 20
Slide 3: Key Highlights: Capex, Cash Flow, Net Debt
1H 2021 RESULTS KEY HIGHLIGHTS 420.4 549.7 368.6 383.9 Operating Capex +14% +43% 1H 2020 1H 2021 1H 2020 1H 2021 Cash Flow € mn € mn Capex up, led by digital transformation and 4,660.2 4,737.0 network extension and repurposing effort Cashflow generation improvement reflects positive working capital
Slide 4: Capex
CAPEX MIX HAS CHANGED 1H 2021 AS EXPECTED €420.4mn +14.1% yoy Other €35.4mn Digitization* 389km new networks pipes of €104.9mn which 52km in Sardinia Development, 481k smart meters installed*** maintenance and repurposing €243.6mn Sardinia** €36.5mn 4 Note: capex including IFRS 16; (*) including met
Slide 5: 1H 2021 Results ESG: GHG Emissions
in line with fuel consumption 1H 2021 and Km travelled RESULTS ESG 69.5 GHG EMISSIONS 62.5 6.4 0.0 0.6 Gas leaks Civil and Vehicles Industrial Scope I and II Consumption* GHG emissions 1H 2020 1H 2021 103t CO2 eq Vehicles - 22 mln km travelled (+24%) +14% emissions - Operative fleet: 92% CNG fuelled
Slide 6: ESG: Energy Consumption
1H 2021 Office management and +24% energy consumption smart working impact +24% km travelled RESULTS ESG 338.3 350.5 ENERGY -2.9 1.3 13.7 0.2 CONSUMPTION Electricity Vehicles Net energy Civil and Thermal Industrial Gas energy consumption 1H 2020 1H 2021 Consumption civil use TJ -3.8% Industrial cons
Slide 7: ESG: Path to Decarbon
1H 2021 RESULTS ESG PATH TO DE-CARBON Predictive maintenance on gas pipelines based on the results of the inspections with CRDS** technology in 2019-2020. Efficient pre-heating systems starting from an assessment by Seaside to identify areas for energy efficiency improvements (replacement of obsolet
Slide 8: Reported vs Adjusted
RESULTS 1H 2021 REPORTED VS 1H 2021 1H 2021 ADJUSTED reported adjusted Change P&L, € mln Total Revenues 665.4 665.4 - Operating expenses - 176.3 - 176.3 - EBITDA 489.1 489.1 - Depreciation & amortisation - 209.7 - 209.7 - EBIT 279.4 279.4 - Net interest income (expenses) - 31.8 - 25.4 6.4 - 6.4mn co
Slide 9: Adjusted P&L
RESULTS 1H 2021 ADJUSTED 1H 2020 1H 2021 adjusted adjusted Change P&L, € mln Total Revenues 646.8 665.4 18.6 Operating expenses - 185.0 - 176.3 8.7 EBITDA 461.8 489.1 27.3 + 5.9% Depreciation & amortisation - 207.8 - 209.7 - 1.9 EBIT 254.0 279.4 25.4 + 10.0% Net interest income (expenses) - 26.4 - 2
Slide 10: Revenues +2.9%
RESULTS Revenues +2.9% vs 1H 2020 1H 2021 Strong performance of €mn services to clients 13.3 6.9 2.4 -4.0 646.8 665.4 1H 2020 570 RAB growth Other regulated Other revenues 1H 2021 Revenues resolution & other tariff revenues* Revenues impact components 10 (*) including tariff adjustments
Slide 11: Revenues breakdown
RESULTS 1H 2021 1H 2020 1H 2021 Change REVENUES, € mln Regulated revenues 626.0 642.2 16.2 Distribution 590.1 595.5 5.4 Tariff contribution for meters replacement 5.2 6.1 0.9 Other distribution revenues 30.7 40.6 9.9 Other revenues 20.8 23.2 2.4 TOTAL REVENUES 646.8 665.4 18.6 11
Slide 12: Operating expenses -4.7%
RESULTS Operating expenses -4.7% vs 1H 2020 1H 2021 €mn -5.8 -2.8 4.4 -4.5 185.0 176.3 1H 2020 Distribution Other Other activities TEE & Other 1H 2021 Operating net distribution Operating Expenses efficiencies* costs** Expenses 12 * like for like; ** excluding concession fees, included in TEE & Othe
Slide 13: Operating expenses breakdown
RESULTS 1H 2021 1H 2020 1H 2021 Change OPERATING EXPENSES, € mln Distribution fixed costs 128.5 119.9 - 8.6 Net labour cost 73.6 67.7 - 5.9 Net external cost 54.9 52.2 - 2.7 Other activities 13.1 17.5 4.4 Net labour cost 1.8 2.5 0.7 Net external cost 11.3 15.0 3.7 Other costs 4.0 1.2 - 2.8 Tee 4.9 3
Slide 14: EBIT +10.0%
RESULTS Ebit +10.0% vs 1H 2020 1H 2021 €mn -1.9 27.3 + New capex - Lower meters acc. D&A 279.4 254.0 1H 2020 Change Change 1H 2021 EBIT EBITDA D&A EBIT 14
Slide 15: Adjusted Net Profit +14.1%
RESULTS Adjusted Net Profit +14.1% vs 1H 2020 1H 2021 Tax rate €mn adjusted 27.6% 1.0 0.1 -5.2 25.4 -8.8 Lower cost of debt Higher average gross debt 184.9 176.1 163.7 1H 2020 EBIT Adj. Net Net Income Adj. Income 1H 2021 Minorities 1H 2021 Adj Net Financial from taxes Adj. Net Profit Adj. Net Profit
Slide 16: Cash Flow
RESULTS Cash Flow 1H 2021 Mainly due to positive impact of €mn billing seasonality 196.5 -412.3 173.2 549.7 +11.8 180.0 137.4 -219.4 -70.3 Net Depreciation Change in Cash flow Net capex* Free Cash M&A & Shareholders' Change profit & other working from flow before Others equity in Net items* capital
Slide 17: Financial Strategy: Debt Maturities
FINANCIAL Debt Maturities STRATEGY EIB Bond A KEY SOURCE OF 900 VALUE CREATION 600 300 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 beyond 2033 Limited refinancing needs and 1H 2021 Gross Debt Structure* liquidity buffer c€690mn Institutional Lenders (EIB) Low exposure to inter
Slide 18: Balance Sheet
RESULTS 1H 2021 BALANCE SHEET FY 2020 1H 2021 Change € mln Net invested capital 6,713.9 6,725.5 11.6 Fixed capital 6,707.2 6,909.6 202.4 Tangible fixed assets 369.9 374.6 4.7 Net intangible fixed assets 6,511.5 6,708.6 197.1 Net payables investments - 208.6 - 207.6 1.0 Equity-accounted and other inv
Slide 19: 1H 2021 Conclusion
1H 2021 CONCLUSION Despite the DL570 effects, 1H results show our capabilities as industrial operators: investments, services to customers and costs reduction Strong focus on environmental performance Submitted offer for DEPA in Greece on July 15th Assessing consultation document of ARERA on allowed
Slide 20: Appendix
APPENDIX 20
Slide 21: P&L Quarterly Adjusted
RESULTS P&L QUARTERLY ADJUSTED 1Q 2021 2Q 2021 3Q 2021 4Q 2021 € mln Total Revenues 333.3 332.1 Operating expenses - 98.9 - 77.4 EBITDA 234.4 254.7 Depreciation & amortisation - 104.5 - 105.2 EBIT 129.9 149.5 Net interest income (expenses) - 13.6 - 11.8 Net income from associates 0.6 0.5 EBT 116.9 1
Slide 22: 2Q P&L
RESULTS 2Q 2Q 2020 2Q 2021 Change € mln Total Revenues 319.7 332.1 12.4 Operating expenses - 84.8 - 77.4 7.4 EBITDA 234.9 254.7 19.8 Depreciation & amortisation - 104.4 - 105.2 - 0.8 EBIT 130.5 149.5 19.0 Net interest income (expenses) - 13.0 - 11.8 1.2 Net income from associates 0.1 0.5 0.4 EBT 117
Slide 23: Main Numbers
MAIN NUMBERS LOREM IPSUM DOLOR SIT AMET Lorem ipspum Lorem ipsum dolor sit amet OPERATING OF WHICH HIGHLIGHTS AFFILIATES (TOTAL) Network length 73,590 km 1,883 km Municipalities 1,888 61 Redelivery Points 7.745 mn 0.153 mn Market Share(1) 35% 0.1% Subsidiareis Controlled companies 23
Slide 24: 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 25: IR contacts
IR contacts Anna Maria Scaglia Armando Iobbi Investor.relations@Italgas.it