London, 12 June 2019 – Chief Executive Officer Paolo Gallo is today presenting to analysts and investors the Italgas Group's Strategic Plan for the 2019-2025 period, which was approved yesterday by the Board of Directors chaired by Alberto Dell’Acqua.
The new Plan is structured along four guidelines: (i) innovation and digital transformation of the Company through the digitization of assets and processes and the development of digital skills for all employees, (ii) construction of the natural gas distribution network in Sardinia, (iii) new M&A operations and (iv) further organic growth, in terms of network extension and redelivery points served..
The Plan provides for a significant increase in investment programmes, equal to 500 million euros (+12.5%) compared to the previous one, to take the Company into the digital age, strengthening its leadership at European level, taking advantage of all development opportunities, and creating value for shareholders.
- Digitization of networks and business processes for a total investment of approximately 1 billion euros. Completion in 2020 of the installation plan for smart meters and 500 new digital networks.
- 500 million euros to build the most technologically advanced natural gas distribution network in Sardinia ("methanization").
- over 2 billion euros for organic development, maintenance and network extensions.
- Total investment plan of 4.5 billion euros (+ €500 million, +12.5%) with additional investment opportunities of approximately 1.9 billion euros for the acquisition of networks following sector tenders and related capex.
- Current dividend policy confirmed.
Paolo Gallo, Italgas CEO, said:
"The main focus of the plan is the company's digital transformation. Innovation, a growing trend in our sector, will create two categories of companies: frontier companies and followers. While today Italgas is a leader in history and size, tomorrow, thanks to investments in digital, it will become a ‘frontier company’, leader at European level. At the end of this long journey Italgas will have one of the most technologically advanced networks, with the application of advanced digital solutions.
The partnerships recently concluded with important global players - Picarro in the USA, State Grid Corporation in China and Eda Thess in Greece - provide the international recognition needed in demonstrating the quality of the path taken.
4.5 billion euros in investments, up 12.5% on the previous Plan, and an opportunity to invest a further 1.9 billion euros in sector tenders: these figures place Italgas among the main industrial companies in the country that create value for the communities in which they operate and for investors.
In light of the results achieved in recent years and the growth and development activities undertaken, this Plan revises all its main targets upward. As such it also confirms the current dividend policy, which has proved particularly profitable for our shareholders, evidenced by the latest financial statements, with a dividend up 12.5% on the previous year”.