Italgas: The Board of Directors convenes the Shareholders’ Meeting on 6 May 2024

Milan, 12 March 2024 – Italgas’ Board of Directors, which met today under the chairmanship of Benedetta Navarra, resolved to call an Ordinary and Extraordinary Shareholders’ Meeting for 6 May, at 2.00 p.m., in a single call, to resolve on the approval of the 2023 Financial Statements, the proposed allocation of profits, the Report on 2024 Remuneration Policy and 2023 Compensation Paid, as well as the proposal to adopt the 2024-2025 Co-investment Plan reserved for employees of the Italgas Group.

To this end, the Board has resolved to submit to the Shareholders’ Meeting a proposal on a free share capital increase through the issue of a maximum of 3,000,000 ordinary shares of the Company, for a nominal amount of 3,720,000 euros to be reserved solely for the beneficiaries of the aforementioned 2024-2025 Co-investment Plan.

The Board has also resolved to propose to the Shareholders’ Meeting the distribution of a dividend of 0.352 euros for each Company share with dividend rights. If so resolved by the Shareholders’ Meeting, the dividend will be paid out on 22 May 2024, with coupon date of 20 May 2024 (record date 21 May 2024).

The Board of Directors, on the basis of information provided by those concerned, also ascertained, for all members, that there are no causes of ineligibility, forfeiture and incompatibility, that the integrity requirements laid down by current legislation are met, as well as compliance with the limits on the accumulation of offices established by the board; moreover, taking into account the provisions of the CLF and the Corporate Governance Code (and the quantitative and qualitative criteria approved by the Board of Directors for the independence assessment), the Board of Directors assessed the independence of its Directors on 12 March 2024, confirming the assessments made at the meeting on 9 March 2023. On the same date, the Board of Directors acknowledged the check performed by the Board of Statutory Auditors in respect of its members on the absence of situations of ineligibility, forfeiture and incompatibility, that they meet the professional and integrity requirements, compliance with the limits on the accumulation of offices and that the independence requirements for members of the Board of Statutory Auditors were still met, also in accordance with the Corporate Governance Code (also taking into account the aforementioned quantitative and qualitative criteria).

In execution of the 2021-2023 Co-investment Plan approved by the Ordinary and Extraordinary Shareholders’ Meeting of 20 April 2021, the Board resolved on the free allocation of a total of 497,089 new ordinary shares of the Company to the beneficiaries of said Plan (first cycle of the Plan) and started the execution of the first tranche of the share capital increase resolved on by the aforesaid Shareholders’ Meeting, for a nominal amount of 616,390 euros drawn from retained earning reserves. The Company will provide accurate information in the manner and within the terms prescribed by law on the implementation of the Plan and the share capital resulting from the execution of said increase.

The Ordinary and Extraordinary Shareholders’ Meeting will be held in Turin, Largo Regio Parco 9, and those entitled to participate may also do so through Computershare S.p.A., which has been identified as the Company’s “Designated Representative” pursuant to art. 135-undecies of the CLF. For more information in this regard, see the call notice of the Ordinary and Extraordinary Shareholders’ Meeting of Italgas which will be published by the Company in the manner and within the terms prescribed by law.

As indicated in the Shareholders’ Meeting call notice, the Integrated Annual Report as at 31 December 2023, the Report on 2024 Remuneration Policy and 2023 Compensation Paid, the 2023 Corporate Governance and Ownership Structure Report, documentation on the 2024-2025 Co-investment Plan, reports on the items on the agenda, and the remaining legal documentation for the purposes of the Shareholders’ Meeting will be made available within the time period established by law.

Italgas signed a €600 million Sustainability Linked financing

Milan, March 8th, 2024 – Italgas signed a €600 million Sustainability Linked financing agreement with a pool of Italian and international banks, with a maximum maturity of 5 years.

This is a Revolving Credit Facility that will enable the Group to access a new source of financing to support future needs.

 The transaction is tied to several Key Performance Indicators (KPIs) related to the reduction of Scope 1 and 2 emissions and the representation of women in responsibility roles, in line with the targets set in the 2023-2029 Strategic Plan and the Sustainable Value Creation Plan.

 In case the objectives are not met, the contract includes a mechanism for step-up of the applicable margin.

The pool of banks consists of BNL, BNP Paribas, Cassa Depositi e Prestiti, Intesa Sanpaolo, Mediobanca, Société Générale, and Unicredit.

Moody’s Investors Service (Moody’s) affirms Italgas at ‘Baa2’ and changes Outlook to Stable from Negative

Milan, November 21st, 2023 – The rating agency Moody’s has affirmed today Italgas S.p.A LongTerm Issuer rating at ‘Baa2’, revising the Outlook to Stable from Negative.

The rating action follows the outlook change to Stable from Negative on the Italian government’s Baa3 debt rating, carried out by Moody’s last 17 November 2023.

Changes to Italgas’ calendar of corporate events

Change of date of the Press Release relating to the results as at June 30th, 2023

Milan, 19 June 2023 – Italgas announces that the publication of the press release relating to the approval of the results as at June 30th, 2023 has been moved forward from July 26th to July 25th 2023, following its approval by the Board of Directors.

Consequently, the conference call to present the results to institutional investors and financial analysts will be held in the afternoon of July 25th 2023.

Italgas presents the Strategic Plan 2023-2029

Investments of € 7.8 billion for the development and digital transformation of assets, strengthening in Greece, and becoming a key player in the water distribution and energy efficiency sectors, while continuing to play a leading role in achieving EU climate goals. Dividend policy updated and extended until 2026.

London, June 15, 2023 – Italgas CEO, Paolo Gallo, presents today to analysts and investors the Group’s Strategic Plan for the period 2023-2029, approved today by the Company’s Board of Directors chaired by Benedetta Navarra.

The new plan includes total investments of €7.8 billion, mainly dedicated to interventions for asset development and gas distribution activities in Italy and Greece, energy efficiency activities, and water sector development. In this sector, following the recently announced acquisition agreements of Veolia’s assets, the Group expects to seize additional growth opportunities.

The 2023-2029 plan also confirms a strong commitment to creating a fully digitized network, ready for the distribution of renewable gas and therefore serving the ecological transition.

In line with the strategic choices made in recent years by the Group, the Plan aims to promote the ecological transition while ensuring energy security and cost competitiveness of energy, benefiting both companies and households.

The Group can rely on a solid and efficient financial structure – built in previous years – despite a more volatile macroeconomic scenario. Thanks to this financial structure, the new dividend policy, extended until 2026, continues to provide shareholders with the opportunity to benefit from growth through a payout ratio of 65%, while also offering protection with a minimum annual growth guarantee of 4%1.

The plan revolves around ESG principles and addresses sustainability challenges by confirming net energy consumption reduction targets and Scope 1, 2, and 3 emissions reduction targets for the entire Group, including Depa Infrastructure, by 2028 and 2030, in line with the carbon neutrality target by 2050. To further drive change, it also introduces new targets related to gender pay equity and the development and valorization of skills and resources.

Highlight 

  • Total investments amounting to €7.8 billion.
  • €4.6 billion for the development, digitalization, and repurposing of the Italian gas distribution network.
  • €0.9 billion for the development of the distribution network in Greece to support the country’s decarbonization goals.
  • €0.8 billion to accelerate growth in the water and energy efficiency sectors.
  • €1.5 billion for Atem tenders.
  • Optimization of the financial structure, maintaining solid investment-grade ratios.
  • Dividend policy: Extension of the dividend policy until 2026, with a confirmed payout ratio of 65% and a 4% DPS growth floor, now based on the 2022 figures.
  • Goals for reducing Scope 1 and Scope 2 greenhouse gas emissions by 34% by 2028 and 42% by 2030, Scope 3 (supply chain) emissions by 30% by 2028 and 33% by 2030, and energy consumption by 27% by 2028 and 33% by 2030 (baseline 20202).
  • “Net Zero” target by 2050.
  • Strong focus on the people driving the ecological transition, with an emphasis on training and promoting diversity, equal opportunities, and inclusion

Italgas CEO, Paolo Gallo, stated:

 Since the outbreak of the war in Ukraine, the EU has been grappling with a challenging equation that sees the ecological transition as an essential goal but not at any cost. It is necessary to ensure energy security and an appropriate level of energy costs for families and businesses.

 The vision and strategic choices made in recent years position Italgas to significantly contribute to this solution through digitalized, flexible, and intelligent networks capable of accommodating renewable gas. These networks enable source diversification, consumption decarbonization, and greater efficiency and cost-effectiveness.

With €7.8 billion, the Group reaffirms its position among the leading industrial entities capable of leveraging its design, investment, and value creation capabilities to serve the sustainable development objectives of the countries in which it operates.

The largest portion of investments is once again dedicated to the development, digital transformation, and repurposing of the gas distribution network. After twenty years, this network now extends to Greece, where the application of Italgas’ most advanced technologies in the sector will enhance the efficiency and quality of gas distribution services and the work of Depa Infrastructure Group’s personnel.

Water distribution and energy efficiency represent two important sectors for the Group’s diversification and development. With €800 million, we aim to become a benchmark player in these sectors, leveraging the technologies developed for gas. The digitalization of water networks and energy efficiency are drivers capable of delivering more efficient services, reducing losses, and generating wealth for communities and regions.

Digitalization, decarbonization, circular economy, training, diversity, and inclusion remain strategic factors for achieving our growth objectives. The results will depend on our ability to continue betting on innovation and leveraging it through our people.


1Compared to the 2022 dividend.

2Calculated on the entire Group perimeter.

Italgas: consolidated results as at 31 march 2023 approved

Milan, 4 May 2023 – The Italgas’ Board of Directors, which met today chaired by Benedetta Navarra, has approved the consolidated results as at 31 March 2023 (unaudited).

Key figures

Consolidated economic and financial highlights:

  • Total revenues: € 479.9 million (+35.6%)
  • Gross operating margin (EBITDA): € 297.2 million (+18.9%)
  • Operating profit (EBIT): € 172.5 million (+21.6%)
  • Net profit attributable to the Group: € 103.6 million (+16.5%)
  • Technical investments: € 175.1 million
  • Cash flow from operating activities: € 107.2 million
  • Net financial debt (excluding the effects pursuant to IFRS 16)1: € 6,016.8 million
  • Net financial debt 2: € 6,089.5 million

Operating highlights (including affiliates):

  • Municipalities in gas distribution concessions: 2,045
  • Number of active meters: 7.961 million
  • Gas distribution network: 81,401 Km

Sustainability highlights:

  • 24.7 103 tCO2 eq Scope 1 and 2 (-6.4%)
  • Net energy consumption: 172.3 TJ (-17.3%)
  • 25,789 km of network inspected (+24.3%)
  • Fugitive emissions/km investigated: 35.02 Sm3/km (-21.8%)

In the first three months of 2023 Italgas Group’s operational activities continue in order to achieve the network’s digital transformation objectives and the sustainability targets set by the Sustainable Value Creation Plan contained in the 2022-2028 Strategic Plan. Italgas’ distribution networks – smart, digital and flexible – are ready to accommodate renewable gases, such as biomethane, hydrogen and synthetic methane, and to act as a driving force for the ecological transition while guaranteeing energy security and competitive costs for industries and citizens.

Key economic indicators continue to grow, thanks to major investments in the digitization of assets, processes and people that confirm the pivotal role of technological innovation in the Group’s development path.

During the period, € 175.1 million of investments were made, mainly for the extension, digital transformation and repurposing of networks. More specifically, 213 kilometres of new pipelines were laid in the first quarter of 2023.

The EBITDA for the first three months of 2023 amounted to € 297.2 million (+18.9% compared to 31 March 2022) and net profit attributable to the Group was € 103.6 million (+16.5% compared to 31 March 2022).

With reference to sustainability objectives, the significant contribution of the various innovation, digitisation and energy efficiency initiatives, both in the industrial and civil sectors, as well as the training activities aimed at informing employees on energy efficiency issues, have allowed the Group to continue on its path towards reducing net energy consumption (-17.3%) and Scope 1 and 2 climate-changing emissions (-6.4%), also in view of the inclusion of the DEPA Infrastructure Group’s contributions related to 2023.

 

Paolo Gallo, CEO of Italgas, commented:

The results achieved in the first quarter allow us to start 2023 under the banner of growth both in terms of performance and the business development in the countries where we operate.

All economic indicators showed double-digit growth, with EBITDA increasing by 18.9% to almost € 300 million and Group Net Profit exceeding € 100 million, up 16.5% compared to the first quarter of last year, thanks also to the contribution of the activities in Greece and the ESCo company.

The € 175 million invested in this first quarter further accelerated the digital transformation of the network that makes our networks ready to accommodate the renewable gases. Such gases are strategic for an ecological transition that ensures, in line with EU objectives, energy security and cost competitiveness for citizens and businesses.

Thanks to the commitment of the men and women of the Italgas Group, we are working to provide communities with an increasingly efficient service using cutting-edge technology; the very same technologies that we have laid at the heart of our path towards a decarbonised economy.

 


1 The item expresses net financial debt excluding the effects of IFRS 16 payables and the Italgas NewCo shareholder loan, inclusive of interest.

2 The item does not include liabilities for € 35.0 million consisting of the pro-rata share of the shareholder loan, including interest, to Italgas Newco S.p.A, subordinated and convertible into shares, subscribed by the shareholder Phaeton Holding SA, deemed not to be financial debt.

Italgas: Shareholders’ Meeting approves 2022 Financial Statements and dividend proposal

  • 2022 financial statements approved;
  • Dividend of € 0.317 per share (+7.5% on the previous year);
  • Favourable opinion on Report on the 2023 Remuneration Policy and 2022 Compensation Paid;
  • 2023-2025 Long Term Incentive Plan approved.

Turin, 20 April 2023 – The Ordinary Shareholders’ Meeting of Italgas took place today in Turin under the chairmanship of Benedetta Navarra. The meeting was attended by shareholders holding 82.52% of the share capital.

Benedetta Navarra, Chairwoman of Italgas, commented:

“Today’s Shareholders’ Meeting marks the end of another very important year for the Italgas Group. A year of positive results and growth in all areas and of winning choices that have placed the Company in the position to play a leading role in the ecological transition process and to become an international benchmark. Digitisation, technological innovation, circular economy, training, diversity and inclusion continue to be the cornerstones of our actions at the disposal of communities and territories”.

Paolo Gallo, CEO of Italgas, commented:

“Even in 2022 Italgas played its part in contributing to the achievement of the EU targets, considering that alongside decarbonisation targets it is crucial to ensure security of supply and industry competitiveness. An approach that we are also promoting in Greece, since the last months of last year marked the Group’s return abroad with the acquisition of Depa Infrastructure, the country’s main gas distribution player.

Digital transformation is pivotal to achieving these goals: within the next year we will complete the transformation of our network into a network of the future – smart, digital and flexible – able to easily receive and safely distribute renewable gases such as biomethane, hydrogen and synthetic methane, and to meet the targets of the ecological transition to the ‘net zero economy’, increasing diversification of sources at competitive costs.

In 2022 we have significantly strengthened our presence in the energy efficiency sector through Geoside, which now represents one of the main players at national level. Also, we are working to borrow the technological excellence developed in the management of gas networks into the water distribution sector. The target is to improve efficiency and service quality in a sector that historically suffers from a fragmentation of management and lack of investment.”

The Shareholders’ Meeting:

  • examined the consolidated financial statements of the Italgas Group as at 31 December 2022, which closed with a net profit attributable to the Group of € 407.3 million (€ 362.8 million in 2021) and an adjusted net profit attributable to the Group of € 395.7 million (€ 367.7 million in 2021);
  • approved the Italgas S.p.A. financial statements for the year as at 31 December 2022, which closed with a net profit of € 259,813,111.40 (€ 239,588,775 in 2021);
  • resolved to allocate € 0.317 (+7.5% compared to the previous year) as a dividend due on each share in proportion to the shares in circulation on the coupon payment date, using the profit for the financial year amounting to € 259,813,111.40 as recorded in Italgas S.p.A.’s financial statements as at 31 December 2022. The payment of the dividend shall be enforced from 24 May 2023, with the payment date of coupon no. 7 established as 22 May 2023 and record date as 23 May 2023.

The accounting process which led to the Company drawing up an Integrated Report for the financial year 2020 was also continued for 2022, with respect to the clear objective of providing evidence of constant development toward the integration of corporate decision-making processes. Such development can be achieved through the organisation’s coherent vision in terms of its operations, risks and opportunities, with the aim to guarantee sustainable management, aimed at creating value over time in social, environmental and economic-financial sectors. For this reason, reports on performance and factors which determine and influence the company’s ability to create value (including, therefore, also non-financial information in accordance with Legislative Decree No. 254/2016) are illustrated in the “Integrated Annual Report 2022”, containing the Directors’ Report, the Consolidated Financial Statements and the Financial Statements for the Year 2022.

As regards the Report on the 2023 Remuneration Policy and the 2022 Compensation Paid, the Shareholders’ Meeting approved, with a binding vote in accordance with article 123-ter, subsection 3-ter, of Legislative Decree no. 58 of 24 February 1998 (“CLF”), Section I containing the “2023 Remuneration Policy”, and, in accordance with subsection 6 of the aforementioned article, expressed its favourable opinion with an advisory and non-binding vote on Section II in relation to the 2022 Compensation Paid.

Lastly, the Shareholders’ Meeting approved the 2023-2025 Long Term Incentive Plan, under the terms and conditions described in the Information Notice made available to the public as required by law. This tool is intended to promote the further alignment of management with the interests of Shareholders and the sustainability of value creation in the long term.

***

The manager responsible for preparing the accounting and corporate documents, Giovanni Mercante, declares, pursuant to paragraph 2, Article 154-bis of the CLF, that the accounting information contained in this report corresponds to the documented results, books and accounting records.

Italgas: exclusive negotiations with Veolia for the potential acquisition of stakes in some companies active in the water sector in the regions of Lazio, Campania and Sicily

Milan, 14 March, 2023 – Italgas has entered into exclusive negotiations with Veolia Environnement S.A. Group for the potential acquisition of the Veolia Group’s stakes in a number of companies active in water service in the regions of Lazio, Campania and Sicily.

The transaction is part of the broader strategy outlined in the 2022-2028 Strategic Plan, aiming at strengthening the Group presence in the water sector. As part of the ongoing negotiations, the Veolia Group has granted Italgas an exclusivity period until May 10, 2023, for completing the due diligence activities.

Specifically, the transaction includes the potential acquisition of the Veolia Group’s stakes in the following companies:

  • 100% of Acqua S.r.l., which in turn directly holds 98.5% of Idrosicilia S.p.A. and, indirectly, 75% of the equity of Siciliacque S.p.A;
  • 100% of Idrolatina S.r.l., which in turn holds about 49% of Acqualatina S.p.A;
  • 47.9% of Acqua Campania S.p.A.

Acqua, Idrosicilia and Idrolatina are pure holding companies, while Siciliacque, Acqualatina and Acqua Campania are the operational ones.

Specifically:

Siciliacque operates under concession for the collection, storage, potabilization and adduction service in the Sicily Region with about 2,000 km of adduction network. The service covers more than 30% of the regional population.

Acqualatina manages the Integrated Water Service in ATO (Optimal Territorial Area) 4-Lazio Meridionale, which includes 38 municipalities and 550,000 inhabitants.

Acqua Campania operates in the Acquedotto Campania Occidentale under concession from the Campania Region. The operational activities of the company are the collection, potabilization, adduction and transportation of drinking water serving water distribution companies, for about 4 million inhabitants.

Italgas: The Board of Directors convenes the Shareholders’ Meeting on 20 April 2023

Milan, 9 March 2023 – Italgas’ Board of Directors, which met today under the chairmanship of Benedetta Navarra, resolved to call an Ordinary Shareholders’ Meeting on 20 April, at 2.30 p.m., in a single call, to resolve on the approval of the 2022 Financial Statements, the proposed profit allocation, the report on the remuneration policy and compensation paid, as well as the 2023-2025 long-term incentive plan.

The Board has resolved to propose to the Shareholders’ Meeting the distribution of a dividend of 0.317 euros for each Company share with dividend rights. If so resolved by the Shareholders’ Meeting, the dividend will be paid out on 24 May 2023, with coupon date of 22 May 2023 (record date 23 May 2023).

The Board of Directors, on the basis of information provided by those concerned, also ascertained, for all members, that there are no causes of ineligibility, forfeiture and incompatibility, that the integrity requirements laid down by current legislation are met, as well as compliance with the limits on the accumulation of offices established by the board; moreover, taking into account the provisions of Legislative Decree 58/98 (“CLF”) and the Corporate Governance Code (and the quantitative and qualitative criteria approved by the Board of Directors for the independence assessment), the Board of Directors assessed the independence of its Directors on 9 March 2023, confirming the assessments made at the meeting on 26 April 2022. On the same date, the Board of Directors acknowledged the check performed by the Board of Statutory Auditors in respect of its members on the absence of situations of ineligibility, forfeiture and incompatibility, that they meet the professional and integrity requirements, compliance with the limits on the accumulation of offices and that the independence requirements for members of the Board of Statutory Auditors were still met, also in accordance with the Corporate Governance Code (also taking into account the aforementioned quantitative and qualitative criteria).

In execution of the 2018-2020 Co-Investment Plan approved by the Ordinary and Extraordinary Shareholders’ Meeting of 19 April 2018, the Board resolved on the free allocation of a total of 499,502 new ordinary shares of the Company to the beneficiaries of said Plan (third cycle of the Plan) and started the execution of the third tranche of the share capital increase resolved on by the aforesaid Shareholders’ Meeting, for a nominal amount of euro 619,382.48  euros drawn from retained earning reserves. The Company will provide accurate information in the manner and within the terms prescribed by law on the implementation of the Plan and the share capital resulting from the execution of said increase.

The Ordinary Shareholders’ Meeting will be held in Turin, Largo Regio Parco 9, and those entitled to participate may also do so through Computershare S.p.A., which has been identified as the Company’s “Designated Representative” pursuant to art. 135-undecies of the CLF. For more information in this regard, see the call notice of the Ordinary Shareholders’ Meeting of Italgas which will be published by the Company in the manner and within the terms prescribed by law.

As indicated in the Shareholders’ Meeting call notice, the Integrated Annual Report as at 31 December 2022, the Report on the 2023 Remuneration Policy and 2022 Compensation Paid, the 2022 Corporate Governance and Ownership Structure Report, documentation on the 2023-2025 Long Term Incentive Plan, reports on the items on the agenda, and the remaining legal documentation for the purposes of the Shareholders’ Meeting will be made available within the time period established by law.

Depa Infrastructure (Italgas Group): signed a new Bond Loan with Eurobank for a total amount of up to 580 million euros

Milan, Athens, 3 October 2022 – Depa Infrastructure, the leading Greek gas distribution operator that recently became part of the Italgas’ Group, has signed a new Bond Loan Programme with Eurobank S.A., for a maximum nominal amount of up to 580 million euros, divided into 3 tranches with a maturity of up to 5,7 and 12 years respectively.

The Bond Loan will mainly be used to finance the investments envisaged in the infrastructure development plan of Depa Infrastructure and its subsidiaries in Greece.

“The loan, signed in less than one month after our entry into Depa Infrastructure,”said Paolo Gallo, Italgas’ CEO “confirms the appreciation of the financial system for the development vision that we intend to realise in Greece. Our smart, digital and flexible networks will be a driver for growth and produce a multiplier effect on wealth for the whole country, in addition to contributing to the rapid decarbonization of energy consumption, both moving to natural gas and by stimulating the production of renewable gases such as biomethane”.

The transaction, hold in the current international financial market volatility, aiming at providing the Depa Infrastructure with an adequate financial structure, among other factors, in terms of duration and type of financial instruments available.

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