Fitch Ratings (“Fitch”) affirms Italgas at ‘BBB+’, Stable Outlooks

Milan, 29 July 2021 – The rating agency Fitch has affirmed today Italgas S.p.A long-term
issuer default rating at ‘BBB+’, Stable outlook.

The rating affirmation is based on Italgas’ strong growth perspectives, well highlighted in its
Strategic Plan 2021-2027 presented to the financial community last June 15 th , 2021.

In particular, the agency emphasises the continuous increase in the Company’s investment
plan despite the pandemic emergency not yet fully overcome and the solid cash flow
generation. Moreover, the Group's commitment to the digital transformation, which will
enable Italgas to achieve significant benefits in terms of operating efficiency, together with its
attitude for strategic diversification towards water distribution sector and energy efficiency,
were once again positively acknowledged.

Fitch highlights as well Italgas’ proactive approach to debt management, whereby the
Company currently relies on a solid liquidity profile and faces no refinancing risk, also thanks
to the successful liability management transactions recently carried out.

 

PR_Italgas – Fitch affirms Italgas rating

Italgas: 2020 financial calendar

Milan, 29 January 2020 – Italgas announces the financial calendar and the dates of the publication of its 2020 financial results as approved by the Board of Directors:

Consolidated financial statement at December 31, 2019 and draft financial statements at December 31, 2019;
Dividend proposal for 2019;
Report on Corporate Governance and Ownership 2019;
Report on Remuneration 2020; Structure 2019; Sustainability Report 2019; PWC Resolution; Call of Shareholders’ Meeting.
Board of Directors approval

Press release and Conference call*

March 11, 2020

March 12, 2020

Financial statements at December 31, 2019;
Dividend approval for 2019,
Appoint BoD and Board of Statutory Auditors.
Shareholders’ Meeting

Press release***

April 20, 2020 in a single call
First quarter 2020 reportBoard of Directors approval Press release and Conference call**April 29, 2020
Strategic Plan 2020-2026Board of Directors approval

Press release and Strategy Presentation*

June 10, 2020

June 11, 2020

Second quarter 2020 results and interim financial report at June 30, 2020Board of Directors approval
Press release and Conference call**
July 27, 2020
Third quarter 2020 reportBoard of Directors approval Press release and Conference call***October 29, 2020

* Press release will be issued in the morning (non trading hours). The conference call for the presentation of results/Strategic Plan to the financial community in the afternoon on the same day;

** Press release will be issued at the end of BoD (trading hours) and Conference Call for the presentation of results will be held later on the same day.

*** Press release will be issued at the end of Shareholders’ meeting;

  • The dividend for the 2019 financial year will be paid on 20 May 2020 (record date 19 May 2020) with coupon payment date 18 May 2020.
  • A road show to present the company’s objectives as established in the 2020-2026 Strategic Plan to institutional investors and financial analysts is scheduled to start in June 2020.

Any amendment to the above calendar will be notified to the market in due time.

Italgas’ Board of Directors appoints the members of the Board Committees and their Chairmen

Milan, 14 May 2019 – Italgas’ Board of Directors, which met yesterday under the chairmanship of Alberto Dell’Acqua, in line with the Code of Corporate Governance, to which the company adheres, confirmed the institution of the following Committees and appointed their members:

Control and Risk and Transactions with Related Parties Committee

  • Paola Annamaria Petrone* (Chairman)
  • Giandomenico Magliano*
  • Silvia Stefini*

Appointments and Compensation Committee

  • Andrea Mascetti* (Chairman)
  • Maurizio Dainelli**
  • Silvia Stefini*

Sustainability Committee

  • Giandomenico Magliano* (Chairman)
  • Yunpeng He**
  • Veronica Vecchi*

The Board of Directors has declared that at least one member of the Control and Risks and Related-Party Transactions Committee and of the Appointments and Remuneration Committee meets the requirements of the Code of Corporate Governance.

* Non-executive and independent Director
** Non-executive Director

Italgas: Consolidated results as at 30 June 2020 approved

Milan, 27 July 2020 – Italgas’ Board of Directors, chaired by Alberto Dell’Acqua, met today and approved the consolidated results for the first half of 2020.

Key figures

Consolidated economic and financial highlights:

  • Total revenues: 646.8 million euros (+6.1%)
  • Gross operating margin (EBITDA): 462.7 million euros (+6.6%)
  • Net profit: 153.4 million euros (-7.7%)
  • Technical investments: 369.5 million euros (+16.3%)
  • Cash flow from operating activities: 388.8 million euros
  • Net financial debt: 4,625.8 million euros

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

The performance achieved by Italgas in the first half of 2020 demonstrates the company’s ability to continue generating solid economic-financial results thanks to digital efficiency and to the innovation projects deployed over the recent years, which made possible to mitigate the impacts of Resolution 570/2019/R/gas, relating to the tariff regulation of gas distribution and metering services for the period 2020-2025, to cushion the negative effects of the pandemic and to ensure the safety and continuity of the service during the lockdown period.

The 369.5 million euros invested over the period (up 16.3% compared to the first half of 2019) were devoted to the development and modernisation of the networks and digital transformation.

In the first half of 2020, around 486 km of new pipelines were laid, compared to around 379 km in the corresponding period of 2019. Construction of the distribution networks continued in Sardinia, with the laying of around 216 km of new networks, for a total of more than 680 km overt a total of about 1.100 km to build.

Despite the difficulties arising from the health emergency, the traditional meter replacement plan continued, with the installation of 0.6 million smart meters, also taking affiliates into account, bringing the total number of smart meters installed as at the end of the first half of 2020 to approximately 7.1 million. The plan, which is expected to be concluded in 2020, is part of the wider project for the digital transformation of the entire network operated. To date, this project has already upgraded the technology of over 400 distribution networks.

The financing requirements related to net investments for the first half of 2020 were fully covered by the positive cash flow from operating activities, equal to 388.8 million euros.

The net financial position as at 30 June 2020 was 4,625.8 million euros (4,410.6 million euros at 31 December 2019), net of financial liabilities pursuant to IFRS 16 of 75.5 million euros (74.7 million euros at 31 December 2019).

The EBITDA of the first half of 2020 amounted to 462.7 million euros (up 6.6% compared to 30 June 2019) and net profit was 153.4 million euros.

Paolo Gallo, CEO of Italgas, commented:

The performance in the first half of 2020 shows the capability of Italgas to react to exeptional situations – like the one we are currently experiencing due to Covid-19 – by continuing to produce solid results. Despite the adverse effects of the new tariff regulation in force from 1 January, we achieved an EBITDA of 462.7 million euros, up almost 7% compared to last year, and a Group net profit of 153.4 million, which was slightly down compared to the same period of 2019, due to to the heavy economic effects of the new regulation mitigated by all the actions implemented by the Company.

Our investments grew, amounting to around 370 million euros, most of which focused on digital transformation and continuous development and modernisation of the networks. Thanks to the digital transformation carried out over the last three years and to the great efforts of our people, we ensured safety and continuity of services throughout lockdown and we were able to get our worksites up and running again in early May. This restart was made possible by the proprietary technologies, developed and created in-house in our Digital Factory, such as “WorkOn Site”, an application that has made the process of verifying the compliance of worksites and works extremely efficient thanks to artificial intelligence and remote operation. 

After completing 65% of the 1,100 kilometres of networks of the methanisation plan in Sardinia, we are getting ready to make some of these networks operational, with immediate benefits for the economy and local population; overtime sustainable benefits, which however required a clear regulation of the entire gas supply chain and the implementation of the tariff equalization in line with the rest of Italy.

Regarding ATEM tenders, we hope for an important acceleration, to release new investments in our sector for over than 3 billion euro per year, essential for the restart of our Country. In the meantime, we are reaping the fruits of our work with the the further award of the Belluno Atem to Italgas and we we are getting ready to start in the coming months all the investments planned –  on this Atem and the other Atems assigned to us. 

Technological innovation, digitisation, efficiency, investments and a close relation with the community will characterize even more Italgas in the next months.  

Italgas: Consolidated results as at 30 June 2020 approved

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Sardinia: acquired from Conscoop the whole share capital of Isgas33

Milan, 13 July 2021 – Italgas today completed the acquisition of the whole share capital of Isgas33, the company holding the concession to manage the gas service in Basin 33 in Sardinia, from Conscoop, cooperative society based in Forlì.

The acquisition, announced on 28 January, was finalised following the fulfilment of the conditions set out in the sale and purchase agreement.

In particular, last January Isgas33 completed the conversion from propane air to natural gas of the distribution network in the municipalities of Quartu S. Elena, Monserrato, Quartucciu, Settimo S. Pietro and Sinnai.

More specifically, the company’s assets include:

– 242 km of network;

– Around 700 active PdR (redelivery points);

– 1 LNG plant with a capacity of 60 cubic metres.

The value of the transaction is EUR 25 million (enterprise value), equal to the estimated RAB for the company’s assets, adjusted for the value of the financial debt at closing.

With the completion of the transaction, the number of Basins in which Italgas is present in Sardinia through its subsidiary Medea has risen to 18 (out of 38). Furthermore, with the acquisition of this network, Italgas, through its subsidiary Medea, has: (i) approximately 1,400 km of networks for natural gas, two thirds of which are already in operation, (ii) about 250 km of LPG-fuelled networks whose conversion – in progress – will be completed by 2021 and (iii) approximately 600 km of propane-fuelled networks in the municipalities of Cagliari, Sassari, Nuoro and Oristano, which will be converted to natural gas. The end customers currently served are 50,000 with the aim of growing them to 150,000 over the next few years. All networks are and will be fully digitalised and equipped for the installation of fibre optics to serve local communities.

Italgas: Changes to corporate events calendar

Milan, February 24, 2021 – Italgas announces that during today’s meeting, the Board of Directors, chaired by Alberto Dell’Acqua, resolved to modify the 2021 calendar of corporate events, moving the Shareholders’ Meeting, originally scheduled for April 14, 2021, to April 20, 2021.

Italgas specifies that the ex-dividend date, the record date and the dividend payment date, already communicated to the market on January 25, 2021, remain unchanged.

The calendar of corporate events is available at https://www.italgas.it/en/investors/financial-calendar/

ITALGAS PRESENTS ITS 2021-2027 STRATEGIC PLAN

7.9 billion euro investments to extend the network, complete the digital transformation and drive the energy transition, boosting the development of renewable gases and energy efficiency

Rome, June 15th, 2021Italgas Chief Executive Officer, Paolo Gallo, is today presenting to analysts and investors the Group’s Strategic Plan for the 2021-2027 period, which was approved yesterday by the Company’s Board of Directors chaired by Alberto Dell’Acqua.

The new Plan envisages an investment program of 7.9 billion euros, with an increase of 0.4 billion euros compared to the previous Plan presented in October 2020. The increase in investments is driven by digitization, with the aim of completing the digital transformation of assets in 2022 and making Italgas a leading player in the energy transition for all intents and purposes; a Plan in line with European decarbonization targets and the development of renewable gases such as biomethane, synthetic gas and green hydrogen.

The new 2021-2027 Plan is structured along five main pillars: (i) digital transformation and technological innovation that will enable Italgas to play a key role in the energy transition; (ii) repurposing and upgrade of the infrastructure to accommodate and distribute renewable gases, and network extension also through M&A and gas tenders; (iii) new growth opportunities by enhancing the Group’s expertise in the energy efficiency, water and IT services sectors; (iv) insourcing of core skills, further boost to people reskilling and upskilling (v) a solid and efficient financial structure to support growth opportunities and continue to ensure an appropriate return for shareholders.

The Plan integrates ESG factors and meets the challenges of sustainability by setting new targets for the Company in terms of emissions reduction, energy efficiency,  competences and people development to make the change effective.

Highlights

  • Total investment Plan of 7.9 billion euros, of which 2 billion euros dedicated to gas tenders; 
  • More than 1.4 billion euros for network digitization (+32% compared to previous Plan);
  • 30% reduction in greenhouse gas emissions and 25% reduction in energy consumption;
  • First step in growth strategy in the energy efficiency sector with the acquisition of the ESCo Ceresa SpA;
  • Consolidation of the Group’s Information Technology activities into a new corporate vehicle;
  • Strong attention to Gender Equality and focus on training (600,000 hours);
  • Optimization of the financial structure and use of financial instruments characterized by sustainability profiles;
  • Dividend policy confirmed until 2023.

Paolo Gallo, CEO of Italgas, commented: 

“Digital transformation remains the main enabler of our growth with the aim of completing network digitization by 2022 and drawing the roadmap that will confirm the strategic role of gas networks as a key driver of the energy transition to achieve EU net carbon zero targets. 

With 7.9 billion euros investments, an increase compared to the previous Plan presented last October, Italgas confirms its position as one of Italy’s leading industrial groups in terms of planning, execution and value generation for the communities it serves, able to give a strong boost to the recovery of our Country. 

The largest amount of investments is allocated for the repurposing of the 73,000 km network and its further extension to unreached territories, also to support the development of biomethane, expected this decade, and other renewable gases such as green hydrogen, to be accommodated and distributed through our network. 

This capability for innovation is reflected in the technology applied to the networks we are building in Sardinia, which are already the most advanced in the country. On the island, we have met the challenge of starting to distribute methane in just over two years, and we are close to completing the construction of 1,100 kilometers of digital native grids which will be suitable for receiving green hydrogen blending, produced by our Power to Gas plant in the province of Cagliari. 

The unlocking of gas tenders, for which we have allocated 2 billion euros, would activate important investments and also would enable the digital transformation of networks which are not involved in this kind of actions due to the current impasse.

In line with the EU Commission’s recommendations to DSOs, we are strengthening our commitment in the energy efficiency sector, working on the acquisition of new competences, also through M&A transactions. 

We will support the implementation of this Plan, and therefore the growth of our Group, through our people and our financial resources. For the former, important training and recruitment initiatives are planned in order to acquire additional digital skills, functional to the energy transition, always focusing on Diversity & Inclusion. Through traditional and sustainable finance, the Company will continue to raise the necessary resources on the market, being able to count on a profitability and a solid cash generation ability, firmly supported by the great attention to operational efficiency”.

Italgas: Clarification on the Press Release on the consensual resolution of the employment relationship with the General Manager Finance and Services, Antonio Paccioretti

Milan, 31 May 2021 – In relation to the press release on the Consensual resolution of the employment relationship with the General Manager Finance and Services, Antonio Paccioretti, published today, the Group clarifies that it is not aware of the reasons of doctor Paccioretti that led him to the consensual resolution of the employment relationship.

Italgas: Gianfranco Amoroso appointed CFO of the company

Milan, 31 May 2021 – Italgas announces that as of 1 June 2021, Mr. Gianfranco Amoroso, former Head of Finance Planning and Control and Head of M&A, will assume the position of Chief Financial Officer of the Company.
Gianfranco Amoroso has a deep knowledge of economic and financial matters and a long experience in Italian industrial companies and investment banks where he has taken overtime increasing responsibilities.
In Italgas since 2016, the year of its return to the stock market, Gianfranco Amoroso has held several positions of responsibility within Italgas’ perimeter and is one of the main reference managers of the financial and M&A strategy that has effectively supported the growth of the Italgas Group in the last five years.

Italgas informs of the consensual resolution of the employment relationship with the General Manager Finance and Services, Antonio Paccioretti

Milan, 31 May 2021 – Italgas informs that Mr. Antonio Paccioretti, General Manager Finance and Services, reached an agreement for the consensual resolution of his employment relationship with effect from 1 June 2021; moreover, Mr. Paccioretti resigned from all the other positions held in the companies of the Group.
The agreement was approved today by the Board of Directors of Italgas, following the positive opinion of the Nominating and Remuneration Committee and in accordance with Italgas’ regulations on related party transactions, as the agreement concerns an executive with strategic responsibilities.
The agreement provides for a non-competition commitment on Mr. Paccioretti’s part for a duration of three years starting from the termination of his employment, against payment to him of Euro 170,000 per annum, in line with the law, as well as an obligation on his part, in the event of breach of the agreement, to refund any amounts received under the agreement and to pay a penalty.
With the agreement, Mr. Paccioretti renounces to any and all rights, claims and actions relating to his employment relationship, including rights related to the incentive plans in place in the Company (Co-Investment Plans 2018-2020 and 2021-2023, Long-Term Monetary Incentive Plans 2017-2019 and 2020-2022).
The agreement is in line with the general criteria of the Company’s current Remuneration Policy, as approved by the Shareholders’ Meeting of 20 April 2021, which, in order to protect the interests of the Company and all Shareholders, provides for the possibility of defining non-competition agreements pursuant to Article 2125 of the Italian Civil Code for roles with specific knowledge of the business in the case of the end of the relationship with the Company, with the provision of penalties in the event of non-compliance.
According to the information available to the Company as of today, Mr. Antonio Paccioretti holds no. 76,958 shares of Italgas.
The Company is grateful to Mr Paccioretti for his positive contribution to the growth of the Group over the years and wishes him all the best for his future professional challenges.

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