Italgas Spa · MIL:IG
Italgas Spa — FY2022 Earnings Presentation
29 slides from Italgas Spa's earnings presentation, Mar 9, 2023
Slide 1: FY 2022 Results
FY 2022 RESULTS Milan 09.03.2023 1
Slide 2: FY 2022 Results key takeaways
FY 2022 Results key takeaways 24 consecutive quarters of growth Strong operating performance of our Italian regulated assets, limiting impact of WACC review DEPA Infrastructure contributing for 4 months. Started setting the basis for its digital transformation Investment in energy efficiency deliver
Slide 3: FY 2022 Results key highlights
FY 2022 Results Italian operations well on track with guidance key highlights DEPA Infrastructure contributes to the growth 1,537.3 1,082.7 1,370.8 1,008.9 Revenues EBITDA +12.1% +7.3% FY 2021 FY 2022 FY 2021 FY 2022 adjusted adjusted € mn € mn 622.8 395.7 583.2 367.7 EBIT Net Income adjusted +6.8%
Slide 4: Key highlights: cash flow and net financial debt
FY 2022 Results key highlights 865.1 831.9 814.3 571.7 Opera9ng Capex -5.9% -31% FY 2022 FY 2022 FY 2021 FY 2021 Cash Flow € mn € mn 4,915.9 5,928.1 Cashflow generation reflects working capital increase mainly due to Esco’s growth and other temporary effects Net Financial Debt €1.0 bn FY 2022 FY 202
Slide 5: Main physical data
FY 2022 Results With Greece, Italgas network exceeds 81,000 kilometres post M&A main physical data OPERATING OF WHICH OF WHICH OF WHICH HIGHLIGHTS ITALY GREECE AFFILIATES (TOTAL) (ex affiliates) Network length 81,309 km 71,915 km 7,491 km 1,903 km Municipalities 2,044 1,843 140 61 Active Redelivery
Slide 6: Capex FY 2022
FY 2022 Results capex FY 2022 €814.3mn Greece €38.9mn Other €47.4mn First time contribution of DEPA Digitization1 532km of new network pipes in €229.0mn Italy and Greece 413k smart meters installed3 Development and repurposing 13 small scale LNG storage and €468.0mn regasification plants installed i
Slide 7: ESG strong performance
ESG strong performance In Italy 592 597 173 161 472 141 103t CO2 eq Net energy Scope 1 FY 2020 FY 2021 FY 2022 FY 2028 FY 2020 FY 2021 FY 2022 FY 2030 FY 2030 FY 2028 consumption and 2 Tj -21.0% yoy -12.1% yoy 183 Progressing towards targets thanks to the initiatives 147 138 put in place - civil and
Slide 8: ESG social targets for Italy
ESG social targets People are a key assets of Italgas for Italy - Upskilling and reskilling continue with a strong increase in hours of training, 26% of which on digitization related topics - Growing female presence both on total workforce (17.8%) and responsibility roles (25%) 48 28 25 35 22 29 17
Slide 9: FY 2022 reported vs adjusted P&L
FY 2022 Results FY 2022 FY 2022 reported adjusted Change P&L, € mln Total Revenues 1,555.9 1,537.3 18.6 Operating expenses - 454.6 - 454.6 - EBITDA 1,101.3 1,082.7 18.6 Depreciation & amortisation - 459.9 - 459.9 - EBIT 641.4 622.8 18.6 Net interest income (expenses) - 56.3 - 56.3 - Net income from
Slide 10: FY 2021 vs FY 2022 adjusted P&L
FY 2022 Results FY 2021 FY 2022 adjusted adjusted Change P&L, € mln Total Revenues 1,370.8 1,537.3 166.5 Operating expenses - 361.9 - 454.6 - 92.7 EBITDA 1,008.9 1,082.7 73.8 + 7.3% Depreciation & amortisation - 425.7 - 459.9 34.2 EBIT 583.2 622.8 39.6 + 6.8% Net interest income (expenses) - 54.0 -
Slide 11: Adjusted Revenues +12.1% yoy
FY 2022 Results Adjusted Revenues +12.1% yoy €mn of which 34.5mn RAB increase1 146.4 -62.8 51.4 -12.0 36.7 1.5 5.2 of which €54.4mn Mainly due to WACC review 1,537.3 1,370.8 Geoside (ESCO) and Naples capital gain FY 2021 WACC Tariff RAB growth Previous Other DEPA Other FY 2022 Adjusted review & cont
Slide 12: Revenues breakdown
FY 2022 Results FY 2021 FY 2022 adjusted adjusted Change REVENUES, € mln Regulated revenues 1,294.5 1,263.1 - 31.4 Distribution 1,200.1 1,175.5 - 24.6 Tariff contribution for meters replacement 13.9 2.0 - 12.0 Other distribution revenues 80.5 85.7 5.2 Other revenues 76.3 222.8 146.4 1 DEPA Infrastru
Slide 13: Operating expenses +25.6%
FY 2022 Results Operating expenses +25.6% €mn 92.1 -18.5 4.0 -5.7 20.8 -5.1% 454.6 vs FY 2021 361.9 FY 2021 Like for like TEE GAXA and DEPA ESCO FY 2022 Operating efficiencies Naples Infrastructure businesses Operating Expenses disposal Expenses 13 Note: DEPA Infrastructure consolidated from 1st Sep
Slide 14: Operating expenses breakdown
FY 2022 Results FY 2021 FY 2022 Change OPERATING EXPENSES, € mln Distribution fixed costs Italy 237.2 224.1 - 13.1 Net labour cost 137.9 139.5 1.6 Net external cost 99.3 84.5 - 14.8 Other activities 53.5 143.6 90.1 Net labour cost 5.3 6.9 1.6 Net external cost 48.2 136.7 88.5 Other costs 3.8 - 1.0 -
Slide 15: Adjusted EBIT +6.8%
FY 2022 Results Adjusted EBIT +6.8% €mn 43.2 -25.0 21.4 Mainly due to higher D&A due to new 583.2 622.8 capex FY 2021 Change Change DEPA FY 2022 Adj. EBIT Adj. EBITDA D&A Italy Infrastructure Adj. EBIT Italy 15 Note: DEPA Infrastructure consolidated from 1st September 2022
Slide 16: Adjusted Net Profit +7.6%
FY 2022 Results Adjusted Net Profit +7.6% Tax rate adjusted €mn 26.6% -2.3 -1.8 39.6 -7.5 20.6 20.6 Higher average gross debt 388.3 416.3 395.7 367.7 FY 2021 Minorities FY 2021 EBIT Adj. Adj. Net Net Income Adj. Income FY 2022 Minorities FY 2022 Adj Net Profit Adj. Net Profit Financial from taxes Ad
Slide 17: Cash Flow
FY 2022 Results Cash Flow €mn 376.0 -240.4 571.7 178.8 436.1 -718.3 325.4 -975.9 -1,014.2 -217.1 Net Depreciation Change in Cash flow Net capex* Disposals Free Cash M&A Shareholders' Change profit & other working from flow before equity & in Net items capital operations M&A others Debt 17 (*) exclud
Slide 18: Debt structure
FY 2022 Results debt structure Debt Maturities EIB Bonds Banking Lines 900 600 No major refinancing needs until 2024 300 Liquidity currently >0.45bn to cover 0 short term outflows and to keep an 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 beyond adequate buffer going forward 2033 Average
Slide 19: Balance sheet
FY 2022 Results Balance sheet 31/12/21 31/12/22 Change € mln Net invested capital 7,128.4 8,390.7 1,262.3 Fixed capital 7,106.2 8,120.6 1,014.4 Tangible fixed assets 372.1 379.0 6.9 Net intangible fixed assets 6,938.1 7,975.5 1,037.4 Net payables investments - 241.9 - 303.5 - 61.6 Equity-accounted a
Slide 20: Shareholders' return
Shareholders’ return Allowing investors to benefit from business growth 0.317 Dividend proposal implies 0.295 0.277 7.5% growth vs 2021 0.256 and 7.4% growth CAGR 2019-22 2019 2020 2021 2022 Dividend per share (€) 20 2022 Dividend to be paid on 24 May 2023 (record date 23 May 2023) with ex dividend
Slide 21: Q&A
Q&A 21
Slide 22: Appendix
Appendix 22 22
Slide 23: 4Q 2021 vs 4Q 2022 adjusted P&L
FY 2022 Results 4Q 2021 4Q 2022 Change P&L adjusted, € mln Total Revenues 365.1 450.3 85.2 Operating expenses - 105.2 - 153.0 - 47.8 EBITDA 259.9 297.3 37.4 Depreciation & amortisation - 107.3 - 129.4 - 22.1 EBIT 152.6 167.9 15.3 Net interest income (expenses) - 14.4 - 15.2 - 0.8 Net income from ass
Slide 24: Quarterly adjusted P&L 2022
FY 2022 Results 1Q 2022 2Q 2022 3Q 2022 4Q 2022 P&L adjusted, € mln Total Revenues 354.0 353.4 379.8 450.3 Operating expenses - 104.0 - 90.1 - 107.6 - 153.0 EBITDA 250.0 263.3 272.1 297.3 Depreciation & amortisation - 108.1 - 109.2 - 113.2 - 129.4 EBIT 141.9 154.1 158.8 167.9 Net interest income (ex
Slide 25: ESG: net energy consumption
FY 2022 Results ESG Net energy consumption of which -76.7 TJ from -20.4% km travelled efficiencies in industrial -18.7% energy consumption processes, mainly pre-heating 597.2 -8.5 -91.0 0.0 -25.7 472.0 Electricity Thermal Vehicles Civil and energy civil use Net energy industrial -21.0% gas consumpti
Slide 26: ESG: GHG emissions
FY 2022 Results ESG GHG emissions - 76,491 km inspected (+6.0%) - Emissions trend (-15.6%) - Gas leaked / km surveyed: 90.5 Smc/km (-15.2%) reflects less km travelled - Gas leaked / gas distributed: 0.087% 160.7 -13.4 -5.1 -1.0 0.0 141.2 Gas Vehicles1 leaked Civil and Scope 1 and 2 industrial Civil
Slide 27: Italgas Newco S.p.A. Attività Regolate
15,56% 100% 90% 67,22% 50,66% 100% 100% 45% 50% Italgas Newco S.p.A. 32,78% 100% 20,01% 100% 42,96% 51,85% Attività Regolate Immogas S.r.l. Consolidamento a Patrimonio netto 100% 100% 100% 100% 49% Energie Rete Gas S.r.l. 27
Slide 28: 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 29: FY 2022 Results contacts
FY 2022 RESULTS www.italgas.it Investor.relations@italgas.it Anna Maria Scaglia Armando Iobbi 29