Slide 1: 2018 3Q Consolidated Results
2018 3Q Consolidated Results 5th November 2018, Milan
Slide 2: 9M 2018: confirming a profitable growth path to reach 2018 targets
9M 2018: confirming a profitable growth path to reach 2018 targets € mn vs 9M 2017 Revenue €880.7 5.5% Operating cash €590.0 flow 8.9% Capex €349.1 EBITDA €629.2 Consolidated Net Debt €3,734.2* 8.9% EBIT €333.9 (*) Year end 2017: €3,720.3 mn 6.1% Net Profit €226.4 2 /
Slide 3: 9M 2018: Consistently capex delivery
9M 2018: Consistently capex delivery € mn 346.5 349.1 6.0% 0.5% 11.5% 47% 51.0% Distribution 47% 37% Metering Others 9M 2017 Driven by M&A 9M 2018 ~1,140,000 smart meters installed ~1,200,000 smart meters installed* * Of which ~1,070,000 units related to the replacement of traditional meters 3 /
Slide 4: Corporate Structure as at September 30th
Corporate Structure as at September 30th Scenario – Focus on Italgas Corporate Structure Fully consolidation method Equity method Toscana Energia v Umbria Distribuzione Metano S.Angelo v Nerw Grids* Ichnusa** Medea * Gas distribution companies in Campania, Calabria and Sicily ( Barano Gas Reti, Isch
Slide 5: Income Statement
Income Statement 9M 2017 9M 2018 Change €mn Revenues 835.0 880.7 45.7 Operating expenses - 257.1 - 251.5 5.6 EBITDA 577.9 629.2 51.3 Depreciation & amortisation - 271.2 - 295.3 - 24.1 EBIT 306.7 333.9 27.2 Net interest income (expenses) - 27.0 - 35.6 - 8.6 Net income from associates 15.8 15.3 - 0.5
Slide 6: Consolidated Revenues
Consolidated Revenues Revenues 9M 2017 9M 2018 Change €mn Regulated revenues 820.3 858.6 38.3 Distribution 746.1 753.8 7.7 Tariff contribution for meters replacement 33.9 61.5 27.6 Other distribution revenues 40.3 43.3 3.0 Other revenues 14.7 22.1 7.4 TOTAL REVENUES 835.0 880.7 45.7 6 /
Slide 7: Consolidated Opex
Opex Consolidated Opex 9M 2017 9M 2018 Change €mn Gas Distribution activities 248.5 239.5 - 9.0 Fixed costs 194.2 190.5 - 3.7 Net labour cost 98.3 109.1 10.8 Net external cost 95.9 81.5 - 14.5 Variable costs 2.0 3.5 1.4 Other costs 11.2 2.2 - 9.0 Tee 1.6 2.4 0.7 Concessions fees 39.5 40.9 1.5 Other
Slide 8: EBIT: +8.9% vs 9M 2017 Analysis
EbitEbit: +8.9% vs 9M 2017 Analysis € mn (24.1) 51.3 Of which: • € 21 mn due to the accelerated depreciation of 333.9 306.7 meters to be replaced with smart ones by 2020 • € 5.5 mn leasing ex IFRS 16 Ebit 9M 2017 Ebitda D&A Ebit 9M 2018 8 /
Slide 9: Net Income: +6.1% vs 9M 2017
Net Income: Consolidated + Income Net 6.1% vs 9M 2017 Tax rate 27.8% € mn (8.6) (0.5) (5.0) 27.2 213.3 226.4 Net income 9M Ebit Net Financial Income Income Net income 9M 2017 Expenses from Taxes on EBT 2018 Associates 9 /
Slide 10: Consolidated Cash Flow
Consolidated Cash Consolidated Flow Cash Flow 110.9 € mn (339.6) 252.8 590.0 (96.1) 226.4 250.4 154.3 (168.2) (13.9) Net income Depreciation Change in Cash flow Net capex Free Cash M&A Free Cash Dividends Change in & other working from flow before flow and other Net Debt items capital operation M&A
Slide 11: A solid, efficient and resilient debt structure
A solid, efficient and resilient debt structure Italgas Debt Structure As of September 30th, 2018 4.8 € bn No refinancing risks until 2022 Total Committed thanks to maturities profile Credit Facilities and Bonds Fixed Floating 900 ratio 800 700 13% 600 21% 500 3.7 400 € bn 300 200 87% 79% 100 0 Fi
Slide 12: Balance sheet
Balance sheet 2017 9M 2018 Change €mn Dec, 31st Net invested capital 4,905.9 5,019.7 113.8 Fixed capital 4,950.9 5,140.9 190.0 Tangible fixed assets 224.6 259.9 35.3 Net intangible fixed assets 4,676.6 4,803.0 126.4 Net payables investments - 135.3 - 108.6 26.7 Equity-accounted and other investments
Slide 13: | By WG Italgas
. | By WG Italgas
Slide 14: Annexes
d | 14) WG Italgas
Slide 15: Income statement
Income statement 2017 2018 3rd Quarter Change 3rd Quarter €mn Revenues 270.4 288.3 17.9 Operating expenses - 82.6 - 83.3 - 0.7 EBITDA 187.8 205.0 17.2 Depreciation & amortisation - 85.1 - 94.1 - 9.0 EBIT 102.7 110.9 8.2 Net interest income (expenses) - 8.6 - 11.9 - 3.3 Net income from associates 5.3
Slide 16: Income statement
Income statement 2018 2018 2018 1st Quarter 2nd 3rd Quarter €mn Quarter* Revenues 281.0 311.4 288.3 Operating expenses - 82.6 - 85.6 - 83.3 EBITDA 198.4 225.8 205.0 Depreciation & amortisation - 86.0 - 115.2 - 94.1 EBIT 112.4 110.6 110.9 Net interest income (expenses) - 12.0 - 11.7 - 11.9 Net income
Slide 17: 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 18: 2018 3Q Consolidated Results
2018 3Q Consolidated Results 5th November 2018, Milan