August 2019

01 Cover story 02 Investing for Growth 03 Efficiencies and return 04 Italgas shares

A significant Investment Plan at the center of the 2019-2025 Strategic Plan

With cumulative investments of around 6.4 billion euro, Italgas aims to reach a RAB over 10 billion euro in 2025. Italgas designed a remarkable investment plan, carefully structured across the different areas, with two clear goals:

Italgas’s growth strategy leverages on a 4.5-billion euro investment plan (of which 3.8 billion referable to the current perimeter), structured with the following profile:

Moreover, Italgas plans to invest 1.9 billion euro in sector tenders, to increase its market share from the current 31% to 45% in terms of Redelivery Points, which in 2025 will thus reach 9.7 million, including the subsidiaries. Out of the overall amount of 1.9 billion, around 1.3 billion will be devoted to the acquisition of gas concessions in the areas in which Italgas will be awarded, while further 600 million euro will cover the investments induced by tenders.

Considering the organic growth generated by the investment plan, the contribution of tenders and M&A operations, in 2025 Italgas expects that its RAB will exceed 10 billion euro, compared to 6.4 billion as at the end of 2018. Overall, the CAGR of the RAB in the 2018–2025 period will amount to 7.1%, assuming continuity in the in the regulatory treatment of benefits cumulated by the end of 2018 and an average inflation of 1.4% over the Plan’s period. Without the support provided by tenders, Group RAB would move from 6.4 billion euro at 2018 year-end up to 8.9 billion at 2025 year-end, with a CAGR of 4.7%.