Italgas Spa · MIL:IG
Italgas Spa — 9M 2022 Earnings Presentation
28 slides from Italgas Spa's earnings presentation, Oct 27, 2022
Slide 1: 9M 2022 Results
9M 2022 RESULTS Milan 27.10.2022 1
Slide 2: 9M 2022 Results key highlights
9M 2022 Results First time consolidation of DEPA Infrastructure (month of September) key highlights Italian operations 9M results well on track with guidance 1,005.7 1,087.0 785.4 749.0 Revenues +8.1% EBITDA +4.9% 9M 2022 9M 2022 9M 2021 9M 2021 € mn € mn 454.9 288.6 430.6 273.6 EBIT +5.6% Net Incom
Slide 3: 9M 2022 Results key highlights: capex, cash flow, net debt
9M 2022 Results key highlights 612.6 533.7 546.7 455.3 Operating Capex -10.8% -14.7% 9M 2021 9M 2022 9M 2021 9M 2022 Cash Flow € mn € mn Cashflow generation reflects regulatory 4,910.0 6,027.9 measures to support natural gas end users (temporary) Net Debt increase, led mainly by DEPA Net Debt ex €1.
Slide 4: Main physical data
Main physical data With Greece, Italgas network exceeds 82,000 kilometres 30/09/2022 OPERATING OF WHICH OF WHICH OF WHICH HIGHLIGHTS ITALY GREECE AFFILIATES (TOTAL) (ex affiliates) Network length 82,215 km 72,959 km 7,353 km 1,903 km Municipalities 2,039 1,838 140 61 Active Redelivery Points 8.309 m
Slide 5: Key highlights: capex 9M 2022
9M 2022 Results key highlights 9M 2022 €546.7mn Greece €9.4mn Other €30.9mn First time contribution of Greece Digitization1 272km new networks pipes €155.8mn 278k smart meters installed3 Development and 11 small scale LNG storage and repurposing regasification plants installed in €323.9mn Sardinia4
Slide 6: ESG: GHG emissions
9M 2022 Results ESG GHG emissions - 66,167 km inspected (+17.8%) - Emissions trend (-10%) - Gas leaked / km surveyed: 72.5 smc/km (-31.0%) reflects less km travelled - Gas leaked / gas distributed: 0.085% (-16%) 122.5 -19.2 -2.8 -0.5 0.0 100.0 Gas Vehicles1 leaked Civil and Scope 1 and 2 industrial
Slide 7: ESG: Net energy consumption
9M 2022 Results ESG Net energy consumption of which -42.6 TJ from -9.4% km travelled efficiencies in industrial -10.8% energy consumption processes, mainly pre-heating 437.3 -5.3 -48.2 0.0 372.7 -11.1 Electricity Thermal Vehicles Civil and energy civil use Net energy industrial -14.8% gas consumptio
Slide 8: 9M 2022 P&L
9M 2022 Results 9M 2021 9M 2022 Change adjusted1 P&L, € mln Total Revenues 1,005.7 1,087.0 81.3 Operating expenses - 256.7 - 301.6 - 44.9 EBITDA 749.0 785.4 36.4 + 4.9% Depreciation & amortisation - 318.4 - 330.5 - 12.1 EBIT 430.6 454.9 24.3 + 5.6% Net interest income (expenses) - 39.6 - 41.1 - 1.5
Slide 9: Revenues bridge
9M 2022 Results Revenues of which €41mn WACC review €mn 12.9 -47.1 76.6 -7.3 38.3 1.1 6.8 Mainly due to of which 32mn Geoside (ESCO) RAB increase1 1,087.0 1,005.7 9M 2021 RAB growth Previous Other Other DEPA WACC Tariff 9M 2022 Revenues & tariff year tariff regulated revenues Infrastructure review &
Slide 10: Revenues table
9M 2022 Results 9M 2021 9M 2022 Change REVENUES, € mln Regulated revenues 962.8 954.7 - 8.2 Distribution 893.0 885.4 - 7.7 Tariff contribution for meters replacement 8.7 1.4 - 7.3 Other distribution revenues 61.1 67.9 6.8 Other revenues 42.9 119.5 76.6 DEPA Infrastructure 1 - 12.9 12.9 TOTAL REVENUE
Slide 11: Operating expenses bridge
9M 2022 Results Operating expenses €mn -1.1 4.5 57.9 -16.3 -6.3% vs 9M 2021 301.6 256.7 9M 2021 Like for like ESCO TEE DEPA 9M 2022 Operating efficiencies businesses Infrastructure Operating Expenses Expenses 11 Note: DEPA Infrastructure relevant only to the month of September
Slide 12: Operating expenses table
9M 2022 Results 9M 2021 9M 2022 Change OPERATING EXPENSES, € mln Distribution fixed costs 169.7 157.4 - 12.2 Net labour cost 97.8 100.8 3.0 Net external cost 71.9 56.6 - 15.3 Other activities 29.6 88.5 58.9 Net labour cost 3.7 4.8 1.1 Net external cost 25.9 83.7 57.8 Other costs 2.1 - 1.6 - 3.8 Tee
Slide 13: EBIT bridge
9M 2022 Results Ebit €mn 27.9 -10.1 6.5 Higher D&A due to new capex 454.9 430.6 9M 2021 Change Change DEPA 9M 2022 EBIT EBITDA Italy D&A Italy Infrastructure EBIT 13 Note: DEPA Infrastructure relevant only to the month of September
Slide 14: Adjusted Net Profit bridge
9M 2022 Results Adjusted Net Profit Tax rate €mn 26.94% 24.3 -1.5 1.1 -6.1 16.2 Higher average gross debt 287.0 304.8 288.6 273.6 9M 2021 9M 2021 EBIT Adj. Net Net Income Adj. Income 9M 2022 Minorities 9M 2022 Adj Net Profit Adj. Net Profit Financial from taxes Adj. Net Profit Adj Net Profit after b
Slide 15: Cash Flow
9M 2022 Results Cash Flow €mn -148.7 299.2 455.3 -555.3 304.8 -100.0 -766.7 -1,116.4 -249.7 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
Slide 16: Debt structure
9M 2022 Results debt structure Debt Maturities EIB Bonds Term Loans 900 600 No major refinancing needs until 300 2024 0 Liquidity currently >0.35bn to cover 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 beyond 2033 short term outflows and to keep an adequate buffer going forward Averag
Slide 17: Balance sheet
9M 2022 Results Balance sheet 31/12/21 30/09/22 Change € mln Net invested capital 7,122.5 8,482.2 1,359.7 Fixed capital 7,106.2 8,068.2 962.0 Tangible fixed assets 372.1 1,144.3 772.2 Net intangible fixed assets 6,938.1 7,102.8 164.7 Net payables investments - 241.9 - 225.7 16.2 Equity-accounted and
Slide 18: Conclusions
9M 2022 Results conclusions DEPA Infrastructure now contributing to numbers In Italy RAB growth and ESCO led top line growth, despite negative impact of regulation Cost efficiencies continue more than offsetting inflationary pressures Sustainability performance keeps improving Well on track with gui
Slide 19: Q&A
Q&A 19
Slide 20: Appendix
Appendix 20 20
Slide 21: 3Q 2022 P&L
9M 2022 Results 3Q 2021 3Q 2022 Change P&L, € mln Total Revenues 340.3 379.8 39.5 Operating expenses - 80.4 - 107.6 - 27.1 EBITDA 259.9 272.1 12.2 Depreciation & amortisation - 108.7 - 113.2 - 4.6 EBIT 151.2 158.8 7.6 Net interest income (expenses) - 14.2 - 14.7 - 0.6 Net income from associates 1.2
Slide 22: Quarterly P&L 2022
9M 2022 Results 1Q 2022 2Q 2022 3Q 2022 4Q 2022 P&L, € mln Total Revenues 354.0 353.4 379.8 Operating expenses - 104.0 - 90.1 - 107.6 EBITDA 250.0 263.3 272.1 Depreciation & amortisation - 108.1 - 109.2 - 113.2 EBIT 141.9 154.1 158.8 Net interest income (expenses) - 14.0 - 12.4 - 14.7 Net income fro
Slide 23: 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 24: Italy regulated revenues scheme
Italy regulated Key features revenues 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 25: 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 26: 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 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: 9M 2022 Results contacts
9M 2022 RESULTS www.italgas.it Investor.relations@italgas.it Anna Maria Scaglia Armando Iobbi 28