Italgas Spa · MIL:IG
Italgas Spa — Q1 2023 Earnings Presentation
25 slides from Italgas Spa's earnings presentation, May 4, 2023
Slide 1: 1Q 2023 Results
1Q 2023 Results 4 May 2023 1
Slide 2: 1Q 2023 Results key highlights
1Q 2023 Results Strong start of the year lead by ESCo growth and DEPA consolidation. key highlights Italian distribution: RAB growth and macro the main drivers offsetting disposals. 479.9 297.2 354.0 250.0 Revenues +35.6% EBITDA +18.9% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 € mln € mln 172.5 103.6 88.9 141
Slide 3: Key highlights: capex, operating cash flow and net debt
1Q 2023 Results Capex in line with last year. Operating cashflow impacted by working capital temporary key highlights absorption (ESCo growth and bonus gas VAT), driving Net Debt slight increase 179.5 175.1 198.8 107.2 Operating Capex -2.4% cash flow -46% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 € mln € mln
Slide 4: 1Q 2023 Results capex
1Q 2023 Results capex 1Q 2023 €175.1mn Greece €24.9 mn Other €10.5mn Development and repurposing2 €83.5mn 213km of new network pipes in Italy and Greece Digitization1 €56.2mn +8.3% vs 1Q 22 Note: capex including IFRS 16, total amounts; (1) includes metering (2) includes Sardinia 4
Slide 5: ESG Results: Net energy consumption
1Q 2023 ESG Results Net energy consumption of which -22.7 TJ from efficiencies in industrial processes Mainly related to Italgas Acqua and buildings management Includes 208.3 -30.4 impact of Greece in -7.4 0.0 1.8 172.3 1Q 2023 350.5 Civil and industrial Electricity Thermal Vehicles Net energy gas e
Slide 6: ESG Results: GHG emissions
1Q 2023 ESG Results Ghg emissions - 25,789 km inspected (+24.3%) - Gas leaked / km surveyed: 35.02 smc/km (-21.8%) - Faster localisation and elimination of leaks with Picarro utilised also in Greece 26.4 -0.4 -1.6 Includes 0.1 0.2 24.7 impact of Gas Greece in leaked Vehicles Civil and 1Q 2023 Civil
Slide 7: P&L 1Q 2023 Results
1Q 2023 Results 1Q 2022 1Q 2023 Change P&L, € mln Total Revenues 354.0 479.9 125.9 Operating expenses - 104.0 - 182.7 - 78.7 EBITDA 250.0 297.2 47.2 + 18.9% Depreciation & amortisation - 108.1 - 124.7 - 16.6 EBIT 141.9 172.5 30.6 + 21.6% Net interest income (expenses) - 14.0 - 19.9 - 5.9 Net income
Slide 8: Revenues +35.6% yoy
1Q 2023 Results Revenues +35.6% yoy €mn Mainly due to Geoside (ESCo) Deflator and CPI mainly 88.3 6.0 -1.1 44.0 7.6 -18.8 479.9 354.0 1Q 2022 RAB growth* Annual inflation Previous Disposals DEPA Other 1Q 2023 Revenues adjustment and year tariff and M&A** Infrastructure revenues*** Revenues other adj
Slide 9: Revenues breakdown
1Q 2023 Results 1Q 2022 1Q 2023 Change REVENUES, € mln Regulated revenues 318.3 319.5 1.2 Distribution 296.3 300.5 4.1 Tariff contribution for meters replacement 0.7 - - 0.7 Other distribution revenues 21.3 19.0 - 2.3 Other revenues 35.7 116.4 80.8 DEPA Infrastructure 1 - 44.0 44.0 TOTAL REVENUES 35
Slide 10: Operating expenses +75.7%
1Q 2023 Results Operating expenses +75.7% €mn 70.3 3.4 -9.2 14.2 182.7 but 1.8mn 104.0 covered by similar amounts in revenues 1Q 2022 Like for like Disposals DEPA ESCO 1Q 2023 Operating and M&A* Infrastructure businesses Operating Expenses Expenses 10 Note: DEPA Infrastructure consolidated from 1st
Slide 11: Operating expenses breakdown
1Q 2023 Results 1Q 2022 1Q 2023 Change OPERATING EXPENSES, € mln Distribution fixed costs Italy 59.7 58.1 - 1.5 Net labour cost 38.2 36.7 - 1.5 Net external cost 21.5 21.5 - 0.0 Other activities 27.3 90.9 63.5 Net labour cost 1.8 1.8 - 0.0 Net external cost 25.5 89.1 63.6 Other costs - 2.6 1.1 3.8 T
Slide 12: EBITDA +18.9%
1Q 2023 Results EBITDA +18.9% €mn ESCO’s EBITDA margin 19% 297.2 250.0 29.7 Esco 20.5 17.0 Depa 29.7 Italy gas Italy gas distribution 247.0 distribution (includes disposals) 99% of the total 83% of the total 1Q 2022 Change DEPA Infrastructure 1Q 2023 EBITDA EBITDA EBITDA ESCo 12 Note: DEPA Infrastru
Slide 13: EBIT +21.6%
1Q 2023 Results EBIT +21.6% €mn 21.3 17.5 -8.2 Mainly due to higher D&A 172.5 141.9 linked to new capex 1Q 2022 Change Change DEPA 1Q 2023 EBIT EBITDA D&A Infrastructure EBIT Italy Italy 13 Note: DEPA Infrastructure consolidated from 1st September 2022
Slide 14: Net Profit +16.5%
1Q 2023 Results Net Profit +16.5% €mn Tax rate 26.9% -5.9 0.1 -6.6 30.6 -8.3 -4.8 Mix of floating-rate debt impacting average cost of debt 111.9 103.6 88.9 93.7 1Q 2022 Minorities 1Q 2022 EBIT Net Net Income Income 1Q 2023 Minorities 1Q 2023 Net Profit Net Profit Financial from taxes Net Profit Net
Slide 15: Cash Flow
1Q 2023 Results Cash Flow VAT receivable increase (€100mn) ESCo growth €mn lower billing seasonality 111.0 -115.6 111.9 107.2 -196.6 -89.4 Net Depreciation Change in Cash flow Net capex* Change profit & other working from in Net items capital operations Debt 15 (*) includes IFRS16 effects
Slide 16: Financial structure: debt maturities
1Q 2023 Results financial Debt maturities Bonds Banking Lines structure EIB 900 600 300 0 No major refinancing needs until 23 24 25 26 27 28 29 30 31 32 33 33 2024 20 20 20 20 20 20 20 20 20 20 20 20 nd yo Liquidity >0.34bn to cover short be term outflows and to keep an adequate buffer going forward
Slide 17: Balance Sheet
1Q 2023 Results Balance Sheet 31/12/22 31/03/23 Change € mln Net invested capital 8,390.7 8,588.8 198.1 Fixed capital 8,120.6 8,197.1 76.5 Tangible fixed assets 379.0 378.1 - 0.9 Net intangible fixed assets 7,975.5 8,026.8 51.3 Net payables investments - 303.5 - 277.1 26.4 Equity-accounted and other
Slide 18: Conclusions
1Q 2023 Results conclusions ESCo and Greece are relevant growth contributors RAB growth and positive macro support Italian gas distribution growth despite negative impact of disposals ESG performance remains strong even with enlarged perimeter Exclusive negotiations with Veolia for the potential acq
Slide 19: Q&A
1Q 2023 Results Q&A Q&A 19
Slide 20: Appendix
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Slide 21: Vision, Purpose e Mission
Vision, Purpose e Mission Vision Purpose To be a leading figure in the world of energy, Pioneers by passion and builders by calling, we driving its sustainable evolution and innovating bring all our energy to accelerate the each day to improve people’s quality of life. ecological transition. We do i
Slide 22: Main physical data
1Q 2023 Results With Greece, Italgas network exceeds 81,400 kilometres post M&A main physical data OPERATING OF WHICH OF WHICH OF WHICH HIGHLIGHTS ITALY GREECE AFFILIATES (TOTAL) (ex affiliates) Network length 81,401 km 71,941 km 7,563km 1,897km Municipalities 2,045 1,844 140 61 Active Redelivery Po
Slide 23: Group Structure
Group Structure Regulated activities Equity Method 23
Slide 24: Disclaimer
Disclaimer Italgas’s Manager, Giovanni Mercante, in his position as manager responsible for the preparation of 1Q 2023 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 th
Slide 25: Investor Relations contacts
Investor.relations@italgas.it Anna Maria Scaglia Armando Iobbi www,italgas,it 25