Slide 1: 3Q 2019 Consolidated Results
3Q 2019 Consolidated Results 7th November 2019, Milan
Slide 2: Corporate structure as at September 2019
Corporate structure as at September 2019 50% Equity method consolidation 45% Full consolidation perimeter 48.68% 100% 100% 100% 100% Newco 100% 1 100% Mediterranea una società Italgas 50.66% from October 1st, 2019; consolidated in 4Q 2019 1 Holds a 10% stake in Isgastrentatrè (fair value method cons
Slide 3: 9M 2019: confirming a strong profitable growth
+ 9M 2019: confirming a strong profitable growth vs 9M 2018 vs 9M 2018 € mn 3.7% Operating cash €528.8 -10.4% Revenue €916.9 flow EBITDA €660.7 5.0% Capex €495.3 41.9% EBITDA Margin 72% Consolidated Net Debt * €3,978.2** 164 12.9% mn EBIT €376.9 (*) Excluding 68.6mn for operating leases
Slide 4: 9M 2019: robust capex delivery
9M 2019: robust capex delivery 9M 2018 9M 2019 €349.1m €495.3mn n 12.1% 0.8% 0.5% 3.4% 12.1% 12.9% 46.2% 49.8% 36.8% 25.4% ~1,200,000 ~1,300,000 smart meters smart meters installed* installed* * Of which ~1,070,000 units related to the replacement of traditional meters * Of which ~1,140,000 units re
Slide 5: 9M 2019: network capex
9M 2019: network capex 9M 2018 9M 2019 175.3 € mn 289.1 € mn 163 km 639 km 92km 20 km 112 km 65 km 146 km 71 km 7 km 289 km Extension New network Maintenance Sardinia 5 /
Slide 6: Income Statement
Income Statement 9M 2018 9M 2019 Change €mn Revenues 884.6 916.9 32.3 Operating expenses - 255.4 - 256.2 - 0.8 EBITDA 629.2 660.7 31.5 5.0% Depreciation & amortisation - 295.3 - 283.8 11.5 EBIT 333.9 376.9 43.0 12.9% Net interest income (expenses) - 35.6 - 37.2 - 1.6 Net income from associates 15.3
Slide 7: Consolidated Revenues
Consolidated Revenues 9M 2018 9M 2019 Change €mn Regulated revenues 862.5 869.4 6.9 Distribution 753.8 794.4 40.6 Tariff contribution for meters replacement 61.5 19.8 - 41.7 Other distribution revenues 47.2 55.2 8.0 Other revenues 22.1 47.5 25.4 TOTAL REVENUES 884.6 916.9 32.3 7 /
Slide 8: Consolidated Opex
Consolidated Opex 9M 2018 9M 2019 Change €mn Gas Distribution activities 242.5 236.9 - 5.6 Fixed costs 193.5 173.9 - 19.6 Net labour cost 108.4 101.3 - 7.1 Net external cost 85.1 72.6 - 12.5 Variable costs 3.5 4.8 1.3 Other costs 2.2 4.5 2.3 Tee 2.4 7.8 5.4 Concessions fees 40.9 45.9 5.0 Other activ
Slide 9: Ebit: +12.9% vs 9M 2018
Ebit: +12.9% vs 9M 2018 €mn 11.5 31.5 376.9 333.9 Ebit 9M 2018 Ebitda D&A Ebit 9M 2019 9 /
Slide 10: Net Income: + 16% vs 9M 2018
Net Income: + 16% vs 9M 2018 Tax rate 26.4% €mn (1.6) 1.9 (7.1) 43.0 262.6 226.4 Net income Ebit Net Financial Income Income Net income 9M 2018 Expenses from Taxes on EBT 9M 2019 Associates 10 /
Slide 11: Consolidated Cash Flow
Consolidated Cash Flow €mn 34.8 231.4 (393.0) 528.8 262.6 (110.3) 135.8 (189.3) (163.9) Net income Depreciation Change in Cash flow Net capex Free Cash M&A Dividends Change in Net & other items working from flow before and other Debt capital operation M&A 11 /
Slide 12: Debt Structure: solidity and efficiency
Debt Structure: solidity and efficiency Debt Structure as at September 30th, 2019 Bond €600mn coupon 0.875% maturity Apr 2030 5.4 € bn IRS EIB Loan €300mn all-in cost 0.42% maturity Nov 2029 Total Committed Funds Fixed Floating No refinancing risks until 2022 ratio 900 7% New Bond 2019 800 9% 17% 70
Slide 13: Balance sheet
Balance sheet 2018 €mn 9M 2019 Change Dec, 31st Net invested capital 5,193.5 5,438.3 244.8 Fixed capital 5,284.1 5,514.0 229.9 Tangible fixed assets 259.2 287.3 28.1 Net intangible fixed assets 4,982.8 5,230.9 248.1 Net payables investments - 133.1 - 185.8 - 52.7 Equity-accounted and other investmen
Slide 14: QRA
WG italgas QRA
Slide 15: Annexes
WG italgas Annexes
Slide 16: Income statement
Income statement 2018 2019 Change €mn 3rd Quarter 3rd Quarter Revenues 289.0 307.5 18.5 Operating expenses - 84.0 - 80.7 3.3 EBITDA 205.0 226.8 21.8 Depreciation & amortisation - 94.1 - 91.5 2.6 EBIT 110.9 135.3 24.4 Net interest income (expenses) - 11.9 - 13.1 - 1.2 Net income from associates 5.6 5
Slide 17: Income statement
Income statement 2019 2019 2019 €mn 1st Quarter 2nd Quarter 3rd Quarter Revenues 310.8 298.6 307.5 Operating expenses - 91.6 - 83.9 - 80.7 EBITDA 219.2 214.7 226.8 Depreciation & amortisation - 95.6 - 96.7 - 91.5 EBIT 123.6 118.0 135.3 Net interest income (expenses) - 12.2 - 11.9 - 13.1 Net income f
Slide 18: Development Opportunities - Affiliates consolidation
Development Opportunities- Affiliates consolidation Toscana Energia key figures Key financials1 Shareholding Structure Transaction rational €m 2016A 2017A 2018A Florence 76 other municipalities PUBLI- SERVIZI Pisa The transaction would allow Italgas to fully consolidate RAB (€ 833 mn) & (Tuscany)(
Slide 19: Sardinia – transaction with Marguerite II Fund
Sardinia – transaction with Marguerite II Fund Transaction details Deal rationale Sale of 48.15% of both Medea Unlocking of a DEAL STRUCTURE Distribution and Medea Newco “market value” for EV recognized (as at 31.12.2018) for the whole project Italgas SpA Marguerite 100% Medea assets in Sardin
Slide 20: 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 21: 3Q 2019 Consolidated Results
3Q 2019 Consolidated Results 7th November 2019, Milan