Italgas Spa · MIL:IG
Italgas Spa — H1 2022 Earnings Presentation
28 slides from Italgas Spa's earnings presentation, Jul 25, 2022
Slide 1: 1H 2022 Results
1H 2022 RESULTS Milan 25.07.2022 1
Slide 2: 1H 2022 Results key highlights
1H 2022 Results 1H results on track with guidance, led by RAB growth, ESCOs and efficiencies, key highlights despite negative impact of WACC and Resolution 570 (€31.4mn) 665.4 707.4 513.3 489.1 Revenues +6.3% EBITDA +4.9% 1H 2021 1H 2022 1H 2021 1H 2022 € mn € mn 296.0 188.3 279.4 176.1 EBIT +5.9% N
Slide 3: Key highlights: capex, cash flow, net debt
1H 2022 Results key highlights 420.4 549.7 374.4 459.5 Operating Capex -10.9% -16.4% 1H 2022 1H 2022 1H 2021 1H 2021 Cash Flow € mn € mn Capex re-allocation as planned, resulting in 4,910.0 5,033.4 yoy reduction Cashflow generation reflects some temporary effects 123 Net Debt ex 1H 2022 FY 2021 Net
Slide 4: Key highlights 1H 2022 capex breakdown
1H 2022 Results key highlights 1H 2022 €374.4mn Other €20.0mn Digitization1 €111.7mn 230km new networks pipes Additional 11 new small scale LNG storage and regasification Development and plants installed in Sardinia3 repurposing 275k smart meters installed4 €225.5mn Sardinia2 €17.2mn 4 Note: capex i
Slide 5: ESG: GHG emissions
1H 2022 Results ESG GHG emissions - 47,667 km inspected (+35.4%) - Emissions trend (-9.1%) reflects less km travelled - Gas leaked / km surveyed: 49.02 smc/km (-43.7%) - Operative bi-fuel fleet: 92% CNG fuelled - Gas leaked / gas distributed: 0.047% (-22%) 69.5 -12.4 -2.1 -0.3 0.0 54.7 Gas Vehicles
Slide 6: ESG: Net energy consumption
1H 2022 Results ESG Net energy consumption of which -34.6 TJ from -10.4% km travelled Mainly related to Italgas Acqua efficiencies in industrial -11.8% energy consumption processes, mainly pre-heating 350.5 -2.4 -38.3 0.0 -8.4 301.5 Electricity Thermal Vehicles energy Civil and civil use Net energy
Slide 7: P&L 1H 2022
1H 2022 Results 1H 2021 1H 2022 Change adjusted* P&L, € mln Total Revenues 665.4 707.4 42.0 Operating expenses - 176.3 - 194.1 - 17.8 EBITDA 489.1 513.3 24.2 + 4.9% Depreciation & amortisation - 209.7 - 217.3 - 7.6 EBIT 279.4 296.0 16.6 + 5.9% Net interest income (expenses) - 25.4 - 26.3 - 0.9 Net i
Slide 8: Revenues +6.3% vs 1H 2021
1H 2022 Results Revenues +6.3% vs 1H 2021 of which €27.2mn WACC review €mn 45.0 -31.4 6.1 -5.0 25.0 2.3 Mainly due to ESCOs of which 21mn RAB increase* 707.4 665.4 1H 2021 RAB growth Previous Other Other WACC review Tariff 1H 2022 Revenues & tariff year tariff regulated revenues & contribution Reven
Slide 9: Revenues breakdown
1H 2022 Results 1H 2021 1H 2022 Change REVENUES, € mln Regulated revenues 642.2 639.2 - 3.0 Distribution 595.5 591.4 - 4.1 Tariff contribution for meters replacement 6.1 1.1 - 5.0 Other distribution revenues 40.6 46.7 6.1 Other revenues 23.2 68.2 45.0 TOTAL REVENUES 665.4 707.4 42.0 9
Slide 10: Operating expenses +10.1% vs 1H 2021
1H 2022 Results Operating expenses +10.1% vs 1H 2021 €mn -1.2 32.2 -13.2 -7.5% vs 1H 2021 194.1 176.3 1H 2021 Like for like ESCO TEE 1H 2022 Operating efficiencies businesses Operating Expenses Expenses 10
Slide 11: Operating expenses breakdown
1H 2022 Results 1H 2021 1H 2022 Change OPERATING EXPENSES, € mln Distribution fixed costs 119.9 108.4 - 11.5 Net labour cost 67.7 66.7 - 1.0 Net external cost 52.2 41.7 - 10.5 Other activities 17.5 51.7 34.2 Net labour cost 2.5 3.4 0.9 Net external cost 15.0 48.3 33.3 Other costs 1.2 - 2.2 - 3.4 Tee
Slide 12: EBIT +5.9% vs 1H 2021
1H 2022 Results Ebit +5.9% vs 1H 2021 €mn 24.2 -7.6 Higher D&A due to new capex 279.4 296.0 1H 2021 Change Change 1H 2022 EBIT EBITDA D&A EBIT 12
Slide 13: Adjusted Net Profit +6.9% vs 1H 2021
1H 2022 Results Adjusted Net Profit +6.9% vs 1H 2021 €mn Tax rate adjusted 27.5% -0.9 2.1 -4.9 16.6 9.5 Higher average gross debt 184.9 197.8 188.3 176.1 1H 2021 1H 2021 EBIT Adj. Net Net Income Adj. Income 1H 2022 Minorities 1H 2022 Adj Net Profit Adj. Net Profit Financial from taxes Adj. Net Profi
Slide 14: Cash Flow
1H 2022 Results Cash Flow €mn 75.4 186.3 -348.4 459.5 197.8 -2.7 111.1 -222.8 -114.4 Net Depreciation Change in Cash flow Net capex* Free Cash Financial Shareholders' Change profit & other working from flow before investments equity & others in Net items* capital operations M&A* and disposals Debt 1
Slide 15: Debt Structure a key source of value creation
Debt Structure a key source of value creation Debt Maturities EIB Bonds Term Loans 1000 500 No major refinancing needs until 2024 Liquidity currently >1.3bn to cover 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 beyond short term outflows and to keep 2033 an adequate buffer going for
Slide 16: Balance sheet
1H 2022 Results Balance sheet 31/12/21 30/06/22 Change € mln Net invested capital 7,122.5 7,215.7 93.2 Fixed capital 7,106.2 7,004.8 - 101.4 Tangible fixed assets 372.1 366.1 - 6.0 Net intangible fixed assets 6,938.1 6,846.0 - 92.1 Net payables investments - 241.9 - 253.0 - 11.1 Equity-accounted and
Slide 17: Conclusions
1H 2022 Results conclusions Working on the implementation of the Strategic Plan 2022-2028 1H performance well on track with guidance Strong top line growth led by RAB increase and ESCOs despite negative regulatory impacts Cost efficiencies continue, driven by digitization Closing of Depa Infrastruct
Slide 18: Q&A
Q&A 18
Slide 19: Appendix
Appendix 19 19
Slide 20: P&L 2Q 2022
1H 2022 Results 2Q 2021 2Q 2022 Change P&L, € mln Total Revenues 332.1 353.4 21.3 Operating expenses - 77.4 - 90.1 - 12.7 EBITDA 254.7 263.3 8.6 Depreciation & amortisation - 105.2 - 109.2 - 4.0 EBIT 149.5 154.1 4.6 Net interest income (expenses) - 11.8 - 12.3 - 0.5 Net income from associates 0.5 2.
Slide 21: Quarterly P&L 2022
1H 2022 Results 1Q 2022 2Q 2022 3Q 2022 4Q 2022 P&L, € mln Total Revenues 354.0 353.4 Operating expenses - 104.0 - 90.1 EBITDA 250.0 263.3 Depreciation & amortisation - 108.1 - 109.2 EBIT 141.9 154.1 Net interest income (expenses) - 14.0 - 12.3 Net income from associates 0.3 2.9 EBT 128.2 144.7 Inco
Slide 22: Italy regulation
Italy regulation CURRENT REGULATORY PERIOD 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 WACC REGULATORY PERIOD WACC WACC WACC trigger trigger reset Key features of Italian regulation • RAB-based framework set and regulated by ARERA New regulatory • Tariffs ensure return on assets period for all
Slide 23: Italy regulated revenues scheme
Italy regulated Key features reveneus Unitary tariffs are set for the regulatory period for each distribution area: scheme Achieved revenues reflect return on asset base. Working capital temporarily impacted by volumes fluctuations. REQUIRED REVENUES = RAB X + DEPRECIATION + OPEX Reg. WACC RAB inclu
Slide 24: Greece regulation
Greece regulation CURRENT REGULATORY PERIOD 2017 2018 2019 2020 2021 2022 2023 Tariff revision Tariff Tariff Tariff Tariff Reference Calculation Reference Calculation Year Year Year Year Key features of Greek regulation • RAB-based framework regulated by the Regulatory Transparent Long Authority for
Slide 25: Greece regulated revenues scheme
Greece regulated Key features revenues Unitary tariffs are set for the regulatory period for each distribution area: scheme • Based on the approved business plans and allowed returns, and inflated annually: the DSO is entitled to collect (required) revenues based on all investments and operational c
Slide 26: Main Numbers
Main Numbers 30/06/2022 LOREM IPSUM DOLOR SIT AMET Lorem ipspum Lorem ipsum dolor sit amet OPERATING OF WHICH HIGHLIGHTS AFFILIATES (TOTAL) Network length 74,788 km 1,899 km Municipalities 1,899 61 Redelivery Points 7.745 mn 0.154 mn Subsidiaries Controlled companies 26
Slide 27: 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 28: 1H 2022 Results
1H 2022 RESULTS www.italgas.it Investor.relations@italgas.it Anna Maria Scaglia Armando Iobbi 28