Objectives and results

Through a 7.8 billion euros investment program, strongly focused on digitalization, the extension of our network and the expansion in the energy efficiency sector, the 2023-2029 Strategic Plan places us in a leading role in the ecological transition while maintaining our solid financial structure.

Financial objectives of the 2023-2029 Strategic Plan

In euro target to 2029
(include scope tenders)
2022 results 
Revenue >2.7 billion euros 1.54 billion euros
EBITDA margin (%) about 68% about 74%
Ebit/RAB ratio about 9% 7.1%
consolidated RAB  12.4 billion euros 8.95 billion euros
Ratio of net debt to RAB about 60% 66%

Plan of actions and results already achieved

Targets of the 2022-2028 Strategic Plan

INVESTMENTS

  • €2.7bn for the repurposing, upgrade and development of the existing network
  • €1.5bn for the digital transformation of networks and processes
  • €0.2bn for the completion of Sardinia methanization
  • €0.1bn for M&A in gas distribution
  • €0.5bn for fueling growth in Energy Efficiency (for €340mn) and Water (for €160mn)
  • €1.8bn for DEPA Infrastructure acquisition, the implementation of its operational plans and the development in the Greek market
  • €1.8bn for gas tenders.

 

OPERATIONAL EFFICIENCIES

Leverage technological innovation and digitization to achieve new levels of efficiency. The cumulated benefits (3) expected from the digitization program are €300mn over the Plan’s period (+€50mn vs. the previous Plan), with an impact of c.€250mn on EBITDA and c.€50mn in lower Capex

 

ENVIRONMENTAL PERFORMANCE

Compared to 2020, 42% reduction of climate-changing emissions (Scope 1 and Scope 2), 33% reduction of Scope 3 (supply chain) emissions and 33% reduction of energy consumption by 2030, in the like-for-like perimeter. Net Zero target in 2050.

 

FINANCIAL STRUCTURE

By leveraging a strong cash generation, keep rating indicators at levels in line with a solid investment grade area. Net Debt-to-RAB ratio consistently <70%, to reach 61% by the end of 2028. FFO-to-Net Debt ratio >10%.

 

DIVIDENDS

  • Dividend equal to the higher of i. the amount resulting from the 2019 DPS (€0.256) increased by 4% per annum and
  • the DPS equivalent to 65% of the adjusted earning per share.

Results already achieved in 2022

 

INVESTMENTS

In 2022, €814.3mn of capex deployed. Investments focused on the network, with 532 km of new pipelines developed. Smart meters installed in 2022: 413 thousand, including replacements. 93% of Italgas meters is smart (almost 100% of the active ones).

 

OPERATIONAL EFFICIENCIES

Operating costs adjusted were €454.6mn in 2022 (+€92.7mn vs. 2021), driven by DEPA Infrastructure consolidation and net external costs related to ESCo activities. Implied operating efficiencies on a like-for-like basis at €18.5mn (-5.1% vs. 2021).

 

ENVIRONMENTAL PERFORMANCE

  • Scope 1 and 2 emissions: -12.1% vs 2021.
  • Scope 3: -6.6% vs 2021.
  • Net energy consumption: -21.0% vs 2021.

 

FINANCIAL STRUCTURE

At the end of 2022, 91% of debt at fixed rate: limited exposure to interest rate volatility. Debt cost below 1%. Net Debt-to-RAB: 66%

 

DIVIDENDS

The dividend proposed for 2022 is €31.7c (+7.5% vs 2021 and +7.4% CAGR vs. 2019) – with significantly higher growth than the floor indicated in the dividend policy.

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