2020 – 2026 Strategic Plan Presentation

Italgas Top Management presents the 2020-2026 Strategic Plan and the 2020 Third Quarter Results.

The event will take place in virtual mode on October 30th at 12 pm CET.

Watch the presentation live

ITALGAS PRESENTS ITS 2020-2026 STRATEGIC PLAN

Milan, 30 October 2020 – Chief Executive Officer Paolo Gallo is today presenting to analysts and investors the Italgas Group’s Strategic Plan for the 2020-2026 period, which was approved yesterday by the Board of Directors chaired by Alberto Dell’Acqua.

The new Plan provides for an investment programme of 7.5 billion euros with an increase of 1.1 billion euros compared to the previous one, further strengthens the Group’s leadership at Italian and European level and opens up new perspectives for development and growth. The Plan integrates environmental, social and governance factors to strengthen the strategic role of the gas distribution sector in the energy transition process towards a decarbonised economy.

The new 2020-2026 Plan is structured along four main guidelines: (i) development of the core business through organic growth (extension and maintenance of the network and increase in the redelivery points served), M&A, gas tenders and opportunities abroad; (ii) digital transformation and technological innovation that will enable Italgas to play a key role in the energy transition; (iii) new development opportunities by exploiting the Group’s expertise in the water and energy efficiency sectors; (iv) a solid and efficient financial structure to support growth opportunities and continue to ensure an appropriate return for shareholders.

Highlights

· Total investment plan of 7.5 billion euros, of which about 2 billion euros dedicated to gas tenders;

· Due to the tenders already concluded, incremental investment opportunities of 600 million euros (in addition to the 300 million euros already provided for in the previous plan);

· Over 1 billion euros for the digitization of networks, processes and people reskilling;

· Investments in new business opportunities for 240 million euros;

· Dividend policy for the next four years increasing based on a 65% pay out and with DPS minimum equal to that distributed in 2020 increased by 4% per year.

Paolo Gallo, CEO of Italgas, commented:

The core of our Plan remains the digital transformation. A process that, in just three years since its start-up, has already profoundly changed the Group’s DNA, making it a reference model in Italy and Europe to which other operators – also from different sectors – are inspired to formulate their strategies. We wanted to invest more resources in innovation to generate further benefits and create the new generation of infrastructure that will enable our networks, already strategic today in terms of capillarity and level of penetration, to play a key role in the energy transition process.

With 7.5 billion euros of investments, of which 2 billion euros to be allocated to the tenders process, we will give a new, strong boost to Italgas’ growth path, further improving the quality of service through our digital networks and making a real contribution to the economic and social development of the areas in which we operate.

The efficiency with which we have guaranteed continuity of service during the lockdown and the speed with which we resumed site activities at the end of the lockdown are proof of the effectiveness of the choices made.

In the light of the results achieved in recent years and the growth and development activities undertaken, this Plan establishes a new dividend policy aimed at guaranteeing shareholders a growing and sustainable remuneration and the Company an appropriate level of own resources with which to face the challenges ahead”.

ITALGAS: CONSOLIDATED RESULTS FOR THE FIRST NINE MONTHS AND THIRD QUARTER OF 2020 APPROVED

Milan, 30 October 2020 – Italgas’ Board of Directors, chaired by Alberto Dell’Acqua, met yesterday and approved the consolidated results of the first nine months and third quarter of 2020.

Key figures

Consolidated economic and financial highlights[1]:

  • Total revenues: € 978.0 million (+6.7%)
  • Gross operating margin (EBITDA): € 715.7 million (+8.3%)
  • Net profit[2]: € 246.5 million (-6.1%)
  • Technical investments: € 556.6 million (+12.4%)
  • Cash flow from operating activities: € 424.4 million
  • Net financial debt[3]: € 4,770.9 million

Operating highlights including affiliates:

  • Municipalities in gas distribution concessions: 1,886
  • Number of active meters: 7.7 million
  • Gas distribution network: around 73,000 Km

In a global scenario characterised by the continuing health emergency and in which, in the specific case of the gas distribution sector, the impact of the application of Resolution 570/2019/R/gas regarding the tariff regulation of gas distribution and metering services for the 2020-2025 period continues to take its toll, the performance recorded by Italgas in the first nine months of 2020 demonstrates the company’s ability to continue generating solid economic and financial results. This is thanks to the efficiency-boosting and digital innovation measures taken by the company over recent years, while continuing to provide a safe, uninterrupted service.

Despite the difficulties arising from the health emergency, the traditional meter replacement plan resumed from May 2020 and continued with the installation of 0.9 million smart meters, also taking affiliates into account, bringing the total number of smart meters installed as at 30 September 2020 to 7.3 million. The plan is part of the wider project for the digital transformation of the entire network managed, which, to date, has already upgraded the technology of around 480 distribution networks.

The cash flow from operating activities in the first nine months of 2020 amounted to € 424.4 million.

The net financial position as at 30 September 2020 was € 4,770.9 million (€ 4,410.6 million at 31 December 2019), net of financial liabilities pursuant to IFRS 16 of € 70.0 million (€ 74.7 million at 31 December 2019).

The EBITDA of the first nine months of 2020 amounted to € 715.7 million (up 8.3% compared to 30 September 2019) and net profit was € 246.5 million (down 6.1% compared to the same period of 2019).

Paolo Gallo, CEO of Italgas, commented:

The results as at 30 September 2020 confirm the effectiveness of the strategic choices made by the Company also in the face of the protracted health emergency and the strongly penalising effects of the tariff regulation in place since 1 January: thanks to the important activities carried out we have limited the reduction in net profit to 6.1%, 246 million euros.

Investments continued to grow significantly reaching, at the end of the third quarter, around 560 million euros (+12.4%), thus giving important support to local economies.

This performance increasingly reflects the contribution of the digital transformation launched in recent years and of the new technologies developed in our Digital Factory, which enable more efficient management of the network, services and all associated activities and make it possible to ensure a safe, uninterrupted service while safeguarding the health of our staff, suppliers and all our customers.

Italgas rafforza la collaborazione con Microsoft

Prosegue il piano di digitalizzazione di Italgas con un focus sempre maggiore su Cloud, Big Data, IoT e AI a supporto della sostenibilità. 

Insieme a Microsoft per accelerare sul percorso di trasformazione digitale puntando sull’efficienza della rete e sull’affidabilità del servizio: smartworking per il presidio da remoto, analisi predittiva per la gestione intelligente degli impianti, mixed reality per la formazione e blockchain per la cybersecurity 

Milano, 14 ottobre 2020 – Italgas, leader in Italia nel settore della distribuzione del gas naturale e terzo operatore in Europa, rafforza la partnership con Microsoft per lo sviluppo di Cloud Computing, Big Data, IoT e Intelligenza Artificiale che consentiranno di proseguire nel percorso di trasformazione digitale di processi e servizi all’insegna di una maggiore sostenibilità e di standard ancora più elevati di qualità e sicurezza.

L’obiettivo è capitalizzare e andare oltre il programma di trasformazione full Cloud, intrapreso nel 2018 insieme a Microsoft, attraverso la piattaforma Azure, che ha reso più flessibile l’infrastruttura tecnologica, e l’hub Microsoft 365, che ha permesso un’ulteriore ottimizzazione delle attività, contribuendo a garantire la continuità del servizio a 7,7 milioni di clienti anche durante l’emergenza sanitaria.

Per la digitalizzazione della propria rete che si estende per circa 73.000 km, Italgas ha scelto infatti la piattaforma Azure IoT, al fine di creare e distribuire rapidamente applicazioni di Internet delle Cose scalabili e sicure e di elaborare quantità enormi di dati sfruttando Artificial Intelligence e Machine Learning, oltre a pianificare, anticipare e monitorare le attività sulle proprie reti grazie all’analisi predittiva e l’utilizzo di tool di analisi come Power BI.

L’innovazione – ha commentato Marco Barra Caracciolo, CIO di Italgas è uno dei driver su cui poggia il piano industriale e più in generale la strategia di sviluppo di Italgas. Per questo è stato individuato nella digitalizzazione degli asset e dei processi e nell’upgrade delle competenze digitali di tutto il personale le chiavi di volta per rendere sempre più efficiente l’operatività sul campo e di conseguenza il servizio reso ai clienti. Un percorso che si è articolato lungo tre direttrici, Internet of Things, dematerializzazione e automazione, e che ha nella Digital Factory il vero motore dell’innovazione. Lavorando in modalità Design Thinking e Agile in Digital sono nati WorkOnSite, Smart tracker, ShareView: solo alcuni dei tanti output rilasciati negli ultimi 18 mesi che hanno rivoluzionato la modalità di gestire i cantieri, l’operatività quotidiana e hanno permesso di dotare i nostri operai di tools evoluti per la condivisione di conoscenze tecniche e il supporto a distanza durante gli interventi. Siamo per questo lieti di rafforzare la nostra collaborazione con Microsoft a beneficio di ulteriori iniziative anche a supporto della digitalizzazione della rete, dove sono già operativi oltre 7 milioni di smart meter, per la lettura a distanza dei consumi, e la sensoristica integrata che ci permette di raccogliere Big Data utili al monitoraggio e alla programmazione di interventi di manutenzione predittiva”. 

La digitalizzazione delle reti è un processo d’interesse collettivo, grazie al quale il mercato Energy può evolvere verso una sempre maggiore efficienza e affidabilità contribuendo così alla crescita sostenibile del Paese. Per questo è di grande valore l’impegno che Italgas sta dedicando al proprio percorso di trasformazione digitale e che la vede da oltre due anni puntare sul Cloud Computing per rinnovare la propria infrastruttura e digitalizzare i propri asset con l’obiettivo di offrire un servizio sempre più affidabile ai suoi 7,6 milioni di clienti. In questi anni le capacità computazionali e di storage di Azure hanno rappresentato un alleato strategico per gestire le esigenze di una rete complessa e accompagnare l’azienda in un percorso di crescita flessibile, rispondendo in modo scalabile alle esigenze e garantendo business continuity in un settore critico per la competitività del Paese. Ora il crescente focus su Big Data, IoT e AI consentirà una gestione più intelligente degli asset e le nuove sperimentazioni in Mixed Reality e Blockchain permetteranno di affrontare le sfide di domani garantendo migliore assistenza e sicurezza e contribuendo allo sviluppo del mercato Energy”, ha commentato Federico Suria, Direttore della Divisione Enterprise Commercial di Microsoft Italia.

Italgas’ Board of Directors approves the renewal of the EMTN programme with a nominal amount increased up to 6.5 billion euro

Milan, 5 October 2020 – Italgas’ Board of Directors, chaired by Alberto Dell’Acqua, met today and approved the renewal of the EMTN Programme launched in 2016 furthermore raising the Programme maximum amount from 5 up to 6.5 billion euro.

As of today, under the current EMTN Programme the notes outstanding are in nominal amount equal to 3.85 billion euro.

The Board of Directors has also approved the issue of one or more bonds to be placed only with institutional investors within one year by the signing date of the Programme. The total amount of the bonds issued may not in any case exceed the abovementioned maximum amount. The newly bonds issued may be listed on the regulated markets.

The EMTN Programme will also allow Italgas to launch bonds issued specifically for the financing of “Green”, “Social” or “Sustainable” projects.

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