Business
Ascopiave S p A : Interim Report as of 30th September 2024
Ascopiave S p A : Interim Report as of 30th September
About this update from Ascopiave S.p.a.
INTERIM REPORT ON OPERATIONS AS AT 30 SEPTEMBER 2024 A s c o p i a v e G r o u p Index GENERAL INFORMATION 5 Corporate bodies and information 5 MANAGEMENT REPORT 8 Foreword 8 The structure of the Ascopiave Group 10 Ascopiave S.p.A. share price performance on the Stock Market 11 Control of the company 12 Corporate Governance and Code of Ethics 13 Transactions with related and associated companies 14 Significant events during the first nine months of the financial year 2024 15 Other significant facts 17 Energy efficiency and Savings 17 Stipulation of a proposed convention with the municipalities for the adoption of a shared procedure aimed at the agreed quantification of the "Industrial Residual Value" of networks 17 Litigation 19 Relations with the Revenue Agency 25 Territorial areas 26 Significant events after the end of the first nine months of the financial year 2024 ........................................................................................................ 28 Distribution dividends 29 Treasury shares 29 Foreseeable development of operations 29 Inflationary trends and interest rates 30 Group objectives, policies and description of risks 31 Additional information 37 Seasonality of operations 37 Comments on the economic and financial results for the first nine months of the financial year 2024 38 Performance Indicators 38 Operating Performance - Main operating indicators 39 Operating Performance - The Economic Results of the Group 40 Operating performance - Financial Situation 42 Operating Performance - Investments 44 Financial Statements of the Interim Report 45 Consolidated Statement of Financial Position 46 Consolidated Statement of Comprehensive Income 47 Consolidated Statements of Changes in Equity 48 Consolidated Cash Flow Statement 49 EXPLANATORY NOTES 50 Corporate information 50 General preparatory benchmarks and expression of conformity with IFRS 50 Schedules of Financial Statements 50 Evaluation Benchmarks 51 Consolidation Area and Criteria 51 Summary data of fully consolidated companies 53 NOTES TO THE ITEMS IN THE CONSOLIDATED BALANCE SHEET 54 Non-current Assets 54 Ascopiave Group - Interim Report on Operations as at 30 September 2024 |3 Current Assets 60 Consolidated net equity 66 Non-current liabilities 67 Current liabilities 71 NOTES TO THE MAIN ITEMS OF THE CONSOLIDATED INCOME STATEMENT 75 Revenues 75 Financial income and expenses 79 Taxes 80 Net result from transfer/disposal of assets 80 Non-recurring components 81 Transactions resulting from atypical and/or unusual operations 81 Commitments and risks 81 Risk factors and uncertainty 81 Capital Management 84 Representation of financial assets and liabilities by category 85 Sector information 86 Transactions with related parties 87 Financial statements presented in accordance with Consob Resolution 15519/2006 ...................................................................................................... 89 Consolidated Statement of Financial Position 89 Consolidated Statement of Comprehensive Income 90 Consolidated Cash Flow Statement 91 Consolidated net financial debt 92 Significant events after the end of the first nine months of the financial year 2024 ... ..................................................................................................... 93 Group Objectives and Policies 93 Attachments: Declaration of the Manager in Charge - Attestation to the Consolidated Financial Statements pursuant to Article 81-ter, Consob Regulation No. 11971 Ascopiave Group - Interim Report on Operations as at 30 September 2024 |4 GENERAL INFORMATION Corporate bodies and information Board of Directors and Board of Auditors Name Office Duration of office From To Cecconato Nicola* Chairman of the Board of Directiors and CEO 2023-2025 18.04.2023 Approval of budget 2025 Pietrobon Greta Directors 2023-2025 18.04.2023 Approval of budget 2025 Quarello Enrico Directors 2023-2025 18.04.2023 Approval of budget 2025 Novello Cristian Indipendet Director 2023-2025 18.04.2023 Approval of budget 2025 Monti Federica Indipendet Director 2023-2025 18.04.2023 Approval of budget 2025 Vecchiato Luisa Indipendet Director 2023-2025 18.04.2023 Approval of budget 2025 Zoppas Giovanni** Indipendet Director 2023-2025 18.04.2023 Approval of budget 2025 Cecconato Nicola was appointed Chief Executive Officer by the Board of Directors on 11 May 2023; (**) Zoppas Giovanni was appointed Lead Independent Director by the Board of Directors on 11 May 2023. Name Office Duration of office From To Salvaggio Giovanni President of the Board of Auditors 2023-2025 18.04.2023 Approval of budget 2025 Moro Barbara Statutory Auditor 2023-2025 18.04.2023 Approval of budget 2025 Biancolin Luca Statutory Auditor 2023-2025 18.04.2023 Approval of budget 2025 Ascopiave Group - Interim Report on Operations as at 30 September 2024 |5 Governance Committees Audit and Risk Committee Name Office From To Novello Cristian Independent director - President 11.05.2023 Approval of budget 2025 Monti Federica Independent director 11.05.2023 Approval of budget 2025 Vecchiato Luisa Independent director 11.05.2023 Approval of budget 2025 Remuneration Committee Name Office From To Vecchiato Luisa Independent director - President 11.05.2023 Approval of budget 2025 Novello Cristian Independent director 11.05.2023 Approval of budget 2025 Pietrobon Greta Non-executive director 11.05.2023 Approval of budget 2025 Sustainability Committee Name Office From To Pietrobon Greta Non-executive director - President 11.05.2023 Approval of budget 2025 Monti Federica Independent director 11.05.2023 Approval of budget 2025 Quarello Enrico Non-executive director 11.05.2023 Approval of budget 2025 Auditing Company Investor relations KPMG S.p.A. Tel. +39 0438 980098 Fax +39 0438 964778 e-mail: [email protected] Registered office and corporate information Ascopiave S.p.A. Via Verizzo, 1030 I-31053 Pieve di Soligo - TV Italy Tel: +39 0438 980098 Fax: +39 0438 964778 Share Capital: Euro 234,411,575 fully paid-in. VAT NO. 03916270261 Ascopiave Group - Interim Report on Operations as at 30 September 2024 |6 Ascopiave Group Key Economic and Financial Data Economic Data Nine month (Thousands of Euro) 2024 % of revenues 2023 % of revenues Revenues 146,292 100.0% 125,153 100.0% Gross operative margin 71,895 49.1% 55,569 44.4% Operating result 34,181 23.4% 19,838 15.9% Result for the period 26,611 18.2% 14,378 11.5% Net result for the period 26,611 18.2% 14,435 11.5% EBITDA is short for earnings before depreciation, amortisation, bad debts, financial management and taxes. Balance Sheet Data (Thousands of Euro) 30.09.2024 31.12.2023 Net working capital 32,159 33,702 Fixed assets and other non current assets (Non-financial) 1,285,337 1,273,692 Non-current liabilities (excluding loans) (63,896) (63,749) Net invested capital 1,253,600 1,243,645 Net financial position (404,782) (389,363) Total Net equity (848,817) (854,282) Total financing sources (1,253,600) (1,243,645) Please note that the "Net working capital" is the sum of inventories, trade receivables, tax receivables, other current assets, trade payables, tax payables (within 12 months) and other current liabilities. Monetary flow data Nine month (Thousands of Euro) 2024 2023 Total comprehensive income 25,704 45 Cash flows generated (used) by operating activities 54,574 (48,420) Cash flows generated/(used) by investments (38,112) (36,465) Cash flows generated (used) by financial activities (51,673) 27,316 Variations in cash (35,212) (57,568) Cash and cash equivalents at the beginning of the period 52,083 76,917 Cash and cash equivalents at the end of the period 16,871 19,349 Ascopiave Group - Interim Report on Operations as at 30 September 2024 |7 MANAGEMENT REPORT F oreword The Ascopiave Group closed the first nine months of the 2024 financial year with a consolidated net profit of Euro 26.6 million (Euro 14.4 million as at 30 September 2023), an increase of Euro 12.2 million compared to the same period of the previous year. Consolidated shareholders' equity as of 30 September 2024 amounted to Euro 848.8 million (Euro 854.3 million as of 31 December 2023), and net invested capital to Euro 1,253.6 million (Euro 1,243.6 million as of 31 December 2023). During the first nine months of the year, the Group made investments of Euro 51.6 million (Euro 55.3 million in the first nine months of 2023), mainly in the development, maintenance and modernisation of gas distribution networks and plants, as well as in the installation of electronic meters, for Euro 40.5 million (Euro 39.8 million in the first nine months of 2023). At the end of the reporting period, investments were made in plants for the production of energy from renewable sources for Euro 9.2 million (Euro 14.4 million in the first nine months of 2023). It should be noted that the Estenergy Group's and Cogeide S.p.A.'s share of the Group's economic results is recognised in the item "Net result of companies consolidated using the equity method". Activities The Ascopiave Group operates mainly in the natural gas distribution sector. It currently holds concessions and direct assignments for the management of gas distribution in 301 municipalities, operating a distribution network that extends over 14,714 kilometres and providing the service to approximately 870,800 users. The Group is also present in the renewable energy sector, owning 29 hydroelectric and wind power plants. The Group also operates in the field of cogeneration and heat management, as well as in the water sector, being a shareholder and technological partner of the company Cogeide, which manages the integrated water service in 15 municipalities, serving a basin of more than 100,000 inhabitants through a network of about 930 km. Strategic Objectives The Ascopiave Group intends to pursue a corporate strategy focused on creating value for its stakeholders, maintaining levels of excellence in the quality of services offered, respecting the environment and enhancing the social instances that characterise the context in which it operates. To this end, it intends to consolidate its leadership position in the gas sector at a regional level and aims to achieve significant positions also at a national level, taking advantage of the liberalisation process currently underway. The main lines of its development strategy are dimensional growth, diversification into other sectors of the energy sector synergic with the core business, and the improvement of operational processes. Operating performance The volume of gas distributed through the networks managed by the Group amounted to 968.9 million cubic metres, an increase of 0.2% compared to the same period of the previous year. As of 30 September 2024, the distribution network had a length of 14,714 kilometres, a decrease of 16 kilometres compared to 31 December 2023. This change is mainly related to the transfer, effective 1 January 2024, of certain concessions in the ownership of Romeo Gas. The 29 plants producing electricity from renewable sources, with a total installed capacity of 84.1 MW, produced 170.0 GWh during the first nine months of the year, showing an increase of 66.2% over the same period of the previous year. The improvement compared to the comparable figure is due to both the commissioning of a new wind farm of the subsidiary Salinella Eolico S.r.l., which took place at the beginning of 2024, and the improvement in operating conditions compared to the first nine months of 2023, characterised by a significant drought. Ascopiave Group - Interim Report on Operations as at 30 September 2024 |8 Economic results and financial overview Consolidated revenue for the first nine months of the financial year 2024 amounted to EUR 146.3 million, compared to EUR 125.2 million in the same period last year. The Group's operating profit amounted to EUR 34.2 million, an increase of EUR 14.3 million compared to the same period last year. At EUR 26.6 million, the consolidated net profit increased by EUR 12.2 million compared to the first nine months of the previous year. The Group's Net Financial Position as of 30 September 2024 was EUR 404.8 million, up EUR 15.4 million from EUR 389.4 million as of 31 December 2023. The increase in financial debt is determined by the cash flow for the year (given by the sum of the net result, income from equity investments, the result of companies consolidated using the equity method and depreciation and amortisation), which generated resources of Euro 52.0 million, by the management of net working capital, which generated financial resources of Euro 1.9 million, by investment activities, which absorbed resources of Euro 51.6 million, and by asset management (mainly dividends), which absorbed resources of Euro 17.7 million. The ratio of Net Financial Position to Shareholders' Equity as at 30 September 2024 was 0.48 (0.62 as at 30 September 2023). Ascopiave Group - Interim Report on Operations as at 30 September 2024 |9 The structure of the Ascopiave Group The table below shows the corporate structure of the Ascopiave Group as at 30 September 2024. Ascopiave Group - Interim Report on Operations as at 30 September 2024 |10