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 share of the market of over 35% (if associated companies are taken into account) in the Italian gas distribution network, with an extensive and geographically diversified network. We manage over 73,000 km of pipelines, serve more than 1,800 municipalities under concessions and have 7.7 million active redelivery points.

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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 and, thanks to the strong focus 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 mostly regulated: therefore, we can implement our plans in a well-defined context.


 

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Focus on innovation

The innovation and digital transformation of our company represent the first guideline of our new Strategic Plan 2020-2026. The financial solidity of the group will allow us to sustain by 2026 investments for 1.1 billion euros to install smart meters, digitize assets and processes and develop new innovative projects through the Digital Factory, which is the real engine for the digitalization of business processes.

 

Digital transformation represents a key process for Italgas. In just three years from its launch, it has profoundly changed the Group's DNA, making it a reference model in Italy and in Europe to which other operators - also from different sectors - take reference in defining their strategies.

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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 86% and with an average borrowing cost above 1%. Including affiliates companies, leverage (the net debt/RAB ratio) on 2020 was just above 60%, and will remain at that level for the entire 2020-2026 Strategic Plan period.

Our cashflow generation remains robust enabling us to maintain our credit metrics at levels consistent with a solid investment grade and to cover both planned investments and dividends, guaranteeing an appropriate financial flexibility to support business development and remuneration for shareholders.

We have also adopted a well-structured approach to managing the risks that can have an impact on value creation. 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

The dividend policy reflects our commitment to provide shareholders with attractive, growing and sustainable remuneration. On 30 October 2020, the Company has established a new four-year policy (2020-23) that provides for the distribution of a dividend equal to the greater of (i) the amount resulting from the FY2019 DPS (0.256 euros) increased by 4% per year and (ii) the DPS equal to 65% of adjusted EPS.

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Sustainability, part of our business model

Our history and deep-rooted, extensive presence throughout the country allows us to put ourselves forward as promoters of sustainable growth, enabling positive connections and synergies between our networks and the communities in which we operate.

Our sustainability plan considers 10 of the 17 Objectives for Sustainable Development (SDGs) of the United Nations and foresees 5 pillars: a culture of sustainability; the people in the center; proximity to the territory; value for the market and customers; energy efficiency and the environment.

Over the years our dedication and achievements have been acknowledged by the financial community, resulting in excellent results achieved in ESG ratings and indices. Since 2017 Italgas has been included in the FTSE4Good indices and recognised by CDP (Carbon Disclosure Project) as an international leader in the implementation of strategies and actions to combat climate change, maintaining its inclusion in the "Climate change B List". In 2019 the Company was also included for the first time in the Dow Jones Sustainability Index World and the inclusion has been confirmed also in 2020.

Furthermore, we confirmed our presence in the ECPI Euro ESG Equity and ECPI World ESG Equity indices (EE assessment) and improved our rating (from A to AA) on the MSCI indices, without forgetting the UNI ISO 37001: 2016 “anticorruption” certification as the crowning achievement following a complex process.

 

ultimo aggiornamento 21 April 2021 09:11 UTC