Number 1 in gas distribution in Italy and third in Europe, Italgas is known for the solidity of its financial structure, low risk profile, its strength from over 180 years of history and its immense appetite for innovation.

 

Our company, which returned to listing on Borsa Italiana’s FTSE MIB index on 7 November 2016 after the separation from Snam, has a number of sound competitive advantages that make us unique in the Italian scenario. We operate in a regulated market that offers strong visibility in terms of medium-term trends, and the investments planned for the next few years will allow us to strengthen our position even more and become a focal point in the sector’s consolidation process. 

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Italian leader in gas distribution

We have a 30% share of the market (34% if associated companies are taken into account) for domestic gas distribution, with an extensive and geographically diversified network. We manage over 66,000 km of networks, serve more than 1,600 municipalities under concessions and have 7.5 million live meters.

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Ideal structure for seizing new opportunities

The Italian gas distribution market lies at the heart of a profound change that has led to a considerable decrease in the number of operators. The 2011 reform, which established 177 minimum geographical areas ("ATEM") based on which the new concessions should be awarded, is accelerating the concentration process.

We are already present in 114 ATEMs (113 ATEMs at the end of 2017) and, focusing strongly on our core business, we have a pool of technical and managerial expertise without equal, as well as a sound capital structure that allows us to strengthen our role in the Italian gas industry, also through acquisitions, and to better leverage the opportunities of future gas tenders.

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Transparency and visibility in the regulatory context

Regulation of the gas distribution market means that we can count on predictable revenues and returns. Our revenues are 98% regulated: therefore we can organise and implement our plans in a well-defined context.


 

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Focus on innovation

Digital innovation will transform our network. The group’s financial soundness means that by the end of 2024 we will have been able to sustain investments for around €1 billion to install smart meters, digitise the network, implement the cloud strategy and create a Digital Factory, which will become the real engine for the digitalization of business processes.

 

Digitisation of the networks and corporate processes is at the heart of Italgas commitments in the coming years. Translated into firm action, this means completing the smart meters installation plan and installation of the sensors system across the entire network: an innovation process that will make Italgas truly unique on the European scenario

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Low risk profile

We have an investment grade rating (Fitch BBB+, Moody’s Baa2). Our debt structure is solid and efficient, with a fixed-rate quota that stood currently at 88% and with an average borrowing cost just above 1%. Leverage (the net debt/RAB ratio) has stood at 61% for the last two years.

Over the period of the 2018-2024 strategic plan we will maintain the robust cash generation, which will enable us to maintain the rating indicators at levels consistent with an area of ​​solid investment grade and to cover both the planned investments, both the dividends as well as the identified M&A transactions at the study during the plan period.

We have also adopted a well-structured approach to managing the risks that can have an impact on creation of value. In addition to a dedicated function, Italgas applies a model to identify, assess, manage and control risks to all its companies.

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Appealing return for investors

Our business model supports an appealing, growing and sustainable dividend policy. Between 2016 and 2019 our policy envisages an increase of 4% per year in the 2016 DPS (20 Eurocents).

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Sustainability, part of our business model

Our share was included in the FTSE4Good index series and Italgas was identified by the CDP (Carbon Disclosure Project) as among the international leaders for the strategies and activities carried out to address climate change, achieving inclusion in the “Climate Change A- List”. Our history and deep-rooted, extensive presence throughout the country mean we can put ourselves forward as promoters of sustainable growth, the result of connections and synergies between the networks and the community.

 

ultimo aggiornamento Wed Oct 24 13:01:10 UTC 2018