THE ITALGASSHAREHOLDERAPRIL 2018
HOW TO BECOME A SHAREHOLDER, TO STAY INFORMED, AND TO PLAY AN ACTIVE ROLE IN THE COMPANY
2
DEAR SHAREHOLDERS,
This Guide will give you an overview of Italgas activities,
strategies and performance. It also includes comprehen-
sive data on Italgas shares and stock-market metrics.
The final pages of the document offer practical infor-
mation on how Italgas shareholders can actively exer-
cise their role: how to get information, invest and moni-
tor share performance; finally, how to participate in the
Company’s events through voting at the Shareholders’
Meeting.
The Guide selects a range of important issues, but it is
not all-inclusive: we recommend that you visit the cor-
porate web site (www.italgas.it) and contact the Investor
Relations Department to gain a better knowledge and
understanding of Italgas, and to remain regularly upda-
ted about the Company.
The ITalgas shareholder - Index
How to become a shareholder, to stay informed, and to play an active role in the Company
BUSINESS, STRATEGIES AND PERFORMANCE3 Italgas key figures
4 Italgas profile
5 Governance
6 Strategic levers
7 Early strategic achievements
ITALGAS AND THE STOCK EXCHANGE 8 Italgas on the Stock Exchange
9 Shareholding structure
10 Shareholders’ returns
BEING AN ITALGAS SHAREHOLDER 11 How to invest
12 Participating in the Shareholders’ Meeting
13 Keeping up to date and getting involved
14 Glossary
15 Useful sources
3
Values and Mission
Expertise, efficiency, innovation, reliability, security, proximity to the people. Every day, for more
than 180 years, the work of the men and women at Italgas has drawn inspiration from these va-
lues. Italgas always accompanies the economic and social development of the country promo-
ting sustainable growth. It is currently the leading natural gas distributor in Italy and number
three in Europe. On these strong foundations, the Group is now looking forward and striving
to strengthen its market presence. Investments, quality of service and digitisation are the main
channels of the strategy implemented to achieve these ambitious goals and to continue to
generate value. Italgas, over 180 years of history and a successful future yet to be written.
(2017 DATA)
KM OF NETWORK
66,154KM OF NETWORK
8,381
GAS DISTRIBUTED
9.0 bcmGAS DISTRIBUTED
1.2 bcm
ACTIVE METERS
7.4 mlnACTIVE METERS
0.9 mln
CONCESSIONS
1,609CONCESSIONS
109
EMPLOYEES
4,010EMPLOYEES
426MARKET SHARE
34.0%MARKET SHARE
3.6%
The ITalgas shareholder - ITalgas key fIgures
Italgas key figures
GROUP OPERATING METRICS
OF WHICH AFFILIATES
ITALGAS GROUPMunicipalities under concession
Consolidated companies Affiliates
4
Italgas profile
The main key performance indicators in the 2017 P&L show double-digit growth. The
strong Cash Flow from Operations (549.4 € mln) allowed for funding the significant capex
plan and produced a Free Cash Flow before M&A of 109.2 € mln. After the M&A cash out
of 50.3 € mln – essentially due to the Enerco deal – and the payment of FY2016 dividends
for 161.8 € mln, at the end of 2017 Net Financial Debt stood at 3,720.3 € mln (+102.9 € mln
compared to the level at 2016 year-end).
REVENUES (€ MLN) ADJUSTED EBITDA (€ MLN) ADJUSTED NET PROFIT (€ MLN)
2016
1,077.9
2017
1,124.2
2016
684.4
2017
781.2
2016
221.1
2017
296.4
CASH FLOW FROM OPERATIONS (€ MLN) TECHNICAL INVESTMENTS (€ MLN) NET FINANCIAL DEBT (€ MLN)
2016
371.4
2017
549.4
2016
378.0
2017
521.9
2016
3,617.4
2017
3,720.3
The ITalgas shareholder - ITalgas profIle
During 2017, two changes took place
in the scope of consolidation of Italgas
Group:
the entry of Enerco Distribuzione, fol-
lowing the acquisition, effective from
6 December 2017;
the merger by incorporation of Napo-
letanagas into Italgas Reti, effective
from 1 October 2017.
CONSOLIDATION AREAS
NON-CONSOLIDATED AFFILIATES100%
100% 100%
100%
S.G.S. S.r.l.
50% 45%
5
Governance
The Board of Directors was appointed by the Shareholders’ Meeting held on 4 August 2016,
with the exception of Federica Lolli, co-opted by the Board of Directors held on 27 July 2017
to replace Barbara Borra. The Board will remain in office until the date of the Shareholders’
Meeting for the approval of the Financial Statements as at 31 December 2018.
The Committees are composed of three Non-Executive Directors, in the majority indepen-
dent, except for the Committee for Control and Risks and Transactions with Related Parties,
which is composed of only Independent Directors, and the Sustainability Committee, which
is composed in the majority of Non-Executive Directors.
COMMITTEES
CONTROL AND RISKS
AND RELATED-PARTY
TRANSACTIONS COMMITTEE
Paola Annamaria Petrone (Chairman)
Nicola Bedin
Federica Lolli
APPOINTMENTS
AND REMUNERATION COMMITTEE
Cinzia Farisè (Chairman)
Maurizio Dainelli
Federica Lolli
SUSTAINABILITY COMMITTEE
Nicola Bedin (Chairman)
Yunpeng He
Paolo Mosa
Control and Risk and Related-Party
Transactions Committee
Appointments
and Remuneration Committee
Sustainability Committee
BOARD OF DIRECTORS 9 members
Independent directors: 4 out of 9 members
Gender representation: 1/3 women
BOARD OF STATUTORY AUDITORS 3 members
Shareholders’ Meeting
BOARD OF DIRECTORS
CHAIRMAN
AND NON-EXECUTIVE DIRECTOR Lorenzo Bini Smaghi
CHIEF EXECUTIVE OFFICER
AND GENERAL MANAGER Paolo Gallo
NON-EXECUTIVE DIRECTORS
Nicola Bedin, independent
Federica Lolli, independent
Maurizio Dainelli
Cinzia Farisè, independent
Yunpeng He
Paolo Mosa
Paola Annamaria Petrone, independent
The ITalgas shareholder - governance
6
2014 2015 2016 2017 2018 2019 2020 2021 2022
Intermediate update of parameters
IV REGOLATORY PERIOD Set parameters:
beta, X factor, reference opex
WACC PERIOD Set parameters: risk free rate, country risk premium, inflation, gearing, cost of debt, tax rate
Strategic levers
LEADERSHIP IN GAS DISTRIBUTION IN ITALY Italgas can already count on a network
that is extensive and well-diversified from
a geographic perspective. The Company
aims to strengthen such competitive
advantage, by increasing its market share
in Italy from 30 to 40%. The Italian gas di-
stribution market is undergoing a radical
change, which has already led to a sizea-
ble reduction in the number of operators.
In the coming years, higher concentration
will be driven by the transition to the ATEM
system – a process that at the moment is
slowed down by procedural difficulties.
Today Italgas has a presence in 114 ATEMs
(113 at 2017 year-end) out of a total of 177,
in which the new 12-year concessions will
be assigned over the next few years. Du-
ring 2017, the Company submitted its offer
for the ATEM of Torino 2 and for that of
Belluno. With a view to consolidating its
presence in strategic geographical areas
and entering regions in which infrastructu-
res for gas distribution are not yeat availa-
ble, in November 2017 Italgas launched its
process of acquiring new companies.
The M&A transactions have brought
70,000 new active customers and present
potential growth of up to 150,000 new cu-
stomers in the coming years.
CLARITY AND VISIBILITY OF THE REGULATORY FRAMEWORK Given the regulatory structure in the Ita-
lian gas distribution market, Italgas will be
able to count on predictable revenues and
returns. The current regulatory period will
conclude at the end of 2019, whereas the
WACC period, which establishes the rate of
return on invested capital, runs for six years,
namely, until the end of 2021, with an inter-
mediate revision of certain parameters that
will take place starting from January 2019.
With 97.6% of 2017 revenues deriving
from regulated operations, Italgas can de-
velop and execute its plans within a very
well-defined regulatory environment.
Italgas presented its 2017-2023 Strategic Plan on 31 May 2017. The Plan leverages two im-
portant competitive advantages: the leadership in the Italian gas distribution market and
the clarity and visibility offered by regulation.
The ITalgas shareholder - sTraTegIc levers
ENERCO S.p.A.*
CPL RETIMEDEA S.p.A.
AMALFITANA GAS
ICHNUSA GAS
PORTOPALO
ACQUISITIONS SINCE NOVEMBER 2017
*Company already consolidated in 2017 Financial Statements
ITALGAS GROUPMunicipalities under concession
Consolidated companies Affiliates 2018 acquisitions
7
Early strategic achievements
3 € bn for organic growth:
focus on development, maintenan-
ce and digitalization of the network
and installation of smart meters.
2 € bn for non-organic growth:participation in ATEMs tenders and
M&A, included additional capex
needed, in order to achieve a mar-
ket share close to 40%.
RAB increase over the Plan’s pe-
riod, including the impact of gas
concession tenders and M&A.
Program launched at the begin-
ning of 2017, with the aim of redu-
cing operating costs by 15% vs. the
2016-level by the year 2018.
Focus on the optimization of the
structure and cost of debt.
Thanks to robust cash generation,
aiming to keep the leverage (Debt-
to-RAB) below 65% over the Plan’s
period.
4% annual increase over the 2016
dividend per share, which was 20
euro cents.
Technical investments of
521.9 € mln in 2017 (+38.1%
vs. 2016).
50.3 € mln: cash out for
M&A deals.
135 € mln: the considera-
tion in terms of EV.
Over 200 € mln: opportuni-
ties of future organic capex
in the acquired companies.
120 mln: additional RAB
from M&A.Over 5.8 € bn:
2017 estimated RAB (+2%
vs. 2016).
2018 target for the extrac-
tion of operational efficien-
cies already achieved in
2017.
At the end of 2017, 71% of
debt concentrated on fixed
rate. 25.2% decrease in net
adjusted financial expenses
vs. 2016.
At 2017 year-end, leverage
around 61%, including affi-
liates.
2017 dividend proposed of
20.8 euro cents (+4% vs.
2016).
OVERALL INVESTMENTS OF 5 BILLION EURO
4.5% GROWTHIN CONSOLIDATED RAB
PROGRAMOF OPERATIONAL EFFICIENCY
FINANCIAL EFFICIENCY
MAINTAINING A SOLID CAPITAL STRUCTURE
2017-2019 DIVIDEND POLICY
TARGETS OF THE 2017-2023 STRATEGIC PLAN RESULTS ALREADY ACHIEVED
The ITalgas shareholder - early sTraTegIc achIevemenTs
8
t
Italgas on the Stock Exchange
Official listing: Italian Stock Exchange - MTA
Segment: Blue Chips
Type: ordinary shares
Index membership: FTSE MIB, FTSE Italy
All-Share, Euro Stoxx, Euro Stoxx Utility, FTSE4Good
Number of outstanding shares as at 29 March 2018: 809,135,502
Market capitalization as at 29 March 2017: 3.93 € bn
ISIN code: IT0005211237
Reuters code: IG.MI
Bloomberg code: IG IM
In 2017 the Italgas shares were included in the series of FTSE4Good indices, following the
review of last June. The inclusion proves that the Company meets the strict FTSE criteria
in the Environmental, Social and Governance (ESG) areas. Moreover, during the year, Ital-
gas was recognized by CDP (Carbon Disclosure Project) among the leading companies in
addressing climate change, obtaining its inclusion in the “Climate Change A-List”.
As at 2017 year-end, Italgas has is-
sued bonds for 2.65 billion euro, at an
average cost of 1.25%, with an avera-
ge maturity exceeding 7 years.
Within the EMTN program approved
by the BoD held on 23 October 2017,
on 18 January 2018 Italgas has suc-
cessfully reopened the bond issued
on 18 September 2017, maturing on 18
January 2029, for a further amount of
250 € mln. At the latter issue, the spre-
ad was 58 basis points (vs. 72 basis
points of the original issue).
ITALGAS SHARES
ITALGAS BONDS
Issuer rating Issuer rating
Last update: 12 Oct. 2017
Long term: Baa1
Short term: not rated
Outlook: negative
Assignment: 4 Aug. 2017
Long term:BBB+
Short term: F2
Outlook:stable
5-year bond 10-year bond 7-year bond 12-year bond
Amount 750 € mln 750 € mln 650 € mln 500 € mln
Maturity 19 January 2022 19 January 2027 14 March 2024 18 January 2029
Annual coupon 0.50% 1.625% 1.125% 1.625%
Re-offer price 99.123% 99.170% 99.123% 99.746%
Spread on mid-swap rate 60 basis points 105 basis points 75 basis points 72 basis points
Listing Luxembourg
Stock ExchangeLuxembourg
Stock ExchangeLuxembourg
Stock ExchangeLuxembourg
Stock Exchange
The ITalgas shareholder - ITalgas on The sTock exchange
9
t
INSTITUTIONAL INVESTORS BY INVESTMENT STYLE
GEOGRAPHICAL DISTRIBUTION OF INSTITUTIONAL INVESTORS
SHAREHOLDERS STRUCTURE
SHAREHOLDING GEOGRAPHICAL BREAKDOWN
The stake of strategic holders includes CDP Reti, Snam, Bank of Italy. The stake of Italy-Retails includes Romano Minozzi.
Shareholding structure
Share capital at the end of March 2018
amounts to€1,001,231,518.44, represented by
809,135,502 shares without indication of no-
minal value, while free float is 60.5%.
At the end of March 2018, investment funds
including socially responsible investing (SRI)
criteria in their screening process represent
approximately 6% of total Italgas sharehol-
ders and approximately 12% of Italgas institu-
tional investors. Relevant participations, relati-
ve to holders owning more than 3% of Italgas
share capital, according to the shareholder re-
gister, the information available and commu-
nications received pursuant to Art. 120 of the
Consolidated Financial Act (TUF), updated as
at 31 March 2017, are as follows:
CDP S.p.A.: 210,738,424, no. of shares held
Snam S.p.A.: 109,233,293 no. of shares held
Lazard Asset Management LLC: 61,253,269,
no. of shares held
Romano Minozzi: 40,406,531, no. of shares
held.
0.46% Bank of Italy4.99% Romano Minozzi7.60% Retail investors13.50% Snam26.05% CDP Reti47.40% Institutional investors
5% Rest of the World7% Italy - Institutionals23% UK and Ireland32% Continental Europe33% USA and Canada
2.4% Rest of the World3.5% Italy - Institutionals10.7% UK and Ireland12.6% Italy - Retails15.0% Continental Europe15.8% USA and Canada40.0% Italy - Strategic holders
6% Hedge Fund10% Other15% Index17% GARP21% Growth31% Value
(MARCH 2018 UPDATE)
The ITalgas shareholder - shareholdIng sTrucTure
10
Shareholder returns
In light of the good results achieved in
the 2017 fiscal year and in line with the
2017-2019 dividend policy set out in the
2017-2023 Strategic Plan, the Board of Di-
rectors proposes to the Shareholders’ Me-
eting, called for 19 April 2018, to approve
the distribution of a € 0.208 dividend per
share, a 4% increase over the 2016 dividend.
Dividend yield, calculated on the official
price at the end of 2017, amounts to 4.1%.
The 2017 dividend will be paid as of 23 May
2018, with an ex-dividend date of 21 May
2018 and record date of 22 May 2018.
From 7 November 2016, when Italgas sha-
res were re-listed, to the end of March 2018,
Total Shareholder Return amounted to
27.7%.
ITALGAS OFFICIAL SHARE PRICE (EURO)
ITALGAS VS. FTSE MIB ED EURO STOXX 600 UTILITIES (2 JANUARY 2017 – 29 MARCH 2018) BASE 2 JAN.2017 = 100
DIVIDEND PER SHARE (EURO CENTS)
The ITalgas shareholder - shareholder reTurns
150.0
140.0
130.0
120.0
110.0
100.0
90.0
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
2017 2018
ITALGAS STOXX EURO 600 UTILITIES FTSEMIB
29 Mar. 2018
29 Dec.2017
30 Dec.2016
07 Nov.2016
6
5
4
3
2
1
0
4.8535.1085
3.73143.9716
24
20
16
12
8
4
02017 2016
20.820.0
11
How to invest
Anyone acquiring Italgas shares becomes an owner of a portion of the Company’s capital.
The status of shareholder not only entitles the investor to be remunerated through the di-
stribution of earnings, but also to take an active part in the Company’s life, contributing to
decisions that are discussed and voted upon in the Shareholders’ Meeting.
REQUISITES In order to become an Italgas shareholder,
you will need a securities deposit account
with an authorized intermediary, such as a
bank or a brokerage firm (“SIM”).
PURCHASING SHARES Italgas shares are purchased on the Italian
Stock Exchange, with the investor indica-
ting to the intermediary the quantity of
shares that he/she wishes to put into his/
her portfolio. It is also possible to specify
a maximum price limit for the purchase, as
well as a time period for the order’s validity.
If the order is submitted without any ma-
ximum price being specified, the purchase
will be done on the basis of best execution,
namely, at the lowest price available for the
quantity of shares being sold.
The intermediary will provide a notification
of order execution when completed. At
that time, the Italgas shares will be booked
to the securities deposit account.
MONITORING INVESTMENT PERFORMANCE The Investors section of the corporate web
site contains a sub-section dedicated to
the Share, which makes it possible to track
Italgas’ stock-market performance, compa-
re the Italgas shares with those of peers,
and calculate an updated value of an inve-
stor’s holding at any time.
COLLECTING DIVIDENDS All investors who own Italgas shares at the
record date (i.e. on 22 May 2018) are entit-
led to receive the annual dividend appro-
ved by the 2018 Shareholders’ Meeting. The
amount of the dividend payment will be
automatically credited to the shareholder’s
current account through the financial inter-
mediary with whom the securities account
is held.
Italgas dividends paid to physical persons
who are tax residents of Italy are subject to
a source withholding tax at a rate of 26%.
Additional information on the subject can
be found on the web site of the Italian Re-
venue Agency (www.agenziaentrate.gov.it).
In order to avoid dual taxation, Italgas sha-
reholders who receive dividends and are
not residents in Italy may file for a tax reim-
bursement. Such reimbursement is gover-
ned by specific treaties between Italy and
the foreign country of residence. Additional
information on the subject can be found on
the web site of the Italian Ministry of the
Economy and Finance (www.mef.gov.it).
The ITalgas shareholder - how To InvesT
12
Participating in the Shareholders’ Meeting
The ITalgas shareholder - parTIcIpaTIng In The shareholders’ meeTIng
NOTICE OF SHAREHOLDERS’ MEETINGS The Shareholders’ Meeting is convened
through a notice that indicates the day, time
and location of the meeting, and the meeting
agenda. The meeting notice is published on
the web sites of Italgas and Borsa Italiana,
and possibly, including in abbreviated form,
in one national daily newspaper, usually 30
days prior to the date of the first or single
session of the meeting. When a Sharehol-
ders’ Meeting is convened for the purpose
of appointing the Board of Directors and the
Board of Statutory Auditors, the meeting no-
tice is published at least 40 days prior to the
date of the meeting. The Italgas Sharehol-
ders’ Meetings are held in a single session.
CONFIRMING ATTENDANCE In order to participate and vote at the Sha-
reholders’ Meeting, the shareholder must
own the Italgas shares at the record date,
which is the seventh open market day prior
to the date of the Shareholders’ Meeting (10
April 2018 – record date), and must send a
notice to the Company, through the autho-
rized intermediary, of participation in the
Shareholders’ Meeting. The notice must be
received by Italgas no later than on the third
open market day prior to the Shareholders’
Meeting (16 April 2018).
PARTICIPATING IN THE SHAREHOLDERS’ MEETINGShareholders may participate in person at
the Shareholders’ Meeting, following the
instructions outlined in the meeting notice
and attending the meeting with a valid iden-
tification document, or they may elect to be
represented by another person. Sharehol-
ders can download the proxy form from
the Italgas web site (in the sub-section: Go-
vernance/ Shareholders’ Meetings/19 April
2018). The proxy should be sent to Italgas at
least two days prior to the date of the Sha-
reholders’ Meeting (17 April 2018), by:
1) post to the following address:
Italgas S.p.A.
Corporate Affairs
Via Carlo Bo, 11 - 20143 Milan Italy
(Proxy for Shareholders’ Meeting on 19 April 2018)
2) certified electronic mail at the address:
Should any shareholder not have a person
to delegate as proxy holder, the proxy along
with voting instructions on all or some of
the proposals on the meeting agenda may
be conferred, without charge, to the Sha-
reholder Representative designated by the
Company. For the 2018 shareholders’ me-
eting, Italgas Designated Representative is
Georgeson. The special proxy form, which
can be downloaded from the Italgas web
site, must be received by the Designated
Representative by no later than the end of
the second open market day prior to the
date of the Shareholders’ Meeting (17 April
2018), together with a copy of a valid iden-
tification document:
by fax, to +39 06 99332795;
by email to: [email protected];
by hand, Priority Mail, or courier, to:
Georgeson S.r.l., Via Emilia 88, 00187,
Rome.
Georgeson S.r.l., Via Emilia 88, 00187, Rome.
If a copy of the proxy is sent by fax or email,
the original proxy shall be sent to the De-
signated Representative at the address
shown above.
For all other information concerning the
Designated Representative, a freepho-
ne number has been made available, 800
123794, for those calling from Italy, and
phone number + 39 06 42171834, for tho-
se calling from abroad, on business days
Monday through Friday from 09:00 to
18:00, as well as a dedicated email account
The documentation related to the mat-
ters on the meeting agenda is available
at the Italgas registered office, on the Bor-
sa Italiana web site (www.borsaitaliana.it),
at the mechanism for storage of regu-
latory information, eMarket STORAGE
(www.emarketstorage.com), as well as on
the corporate web site (www.italgas.it) in
the section: Governance/Shareholders’ Me-
eting/19 April 2018.
13
Keeping up to date and getting involved
HOW TO STAY INFORMED The corporate web site (www.italgas.it) is
the main reference point for staying infor-
med on a real-time basis and for learning
more about Italgas.
The Investors section of the web site con-
tains disclosure documents, such as Fi-
nancial Statements and Presentations, as
well as information about share performan-
ce and financials, all of which is useful for
evaluating investment decisions. The sub-
section entitled Publications for Investors
allows for consulting documents that assist
shareholders in better understanding Ital-
gas, the natural gas distribution business,
and the way in which the financial markets
reflect the Company’s and the sector’s hi-
storical performance and prospects. In
addition to this Guide, the publications in-
clude the Financial Markets Overview, and,
starting in May 2017, the IG focus newslet-
ter dedicated to investors.
Price-sensitive Press Releases can be found
in the Media section, which also features a
sub-section dedicated to News.
Finally, the Governance section contains the
Company’s By-laws, and its Ethics Code,
while the 2017 Shareholders’ Meeting sub-
section presents the Shareholders’ Meeting
Regulations and documentation useful for
participating in the Shareholders’ Meeting
and finding out about voting results.
Shareholders may also consult social-media
channels for continuous updates of news.
Italgas is present on Twitter, Linkedin, You-
Tube and Flickr e Instagram.
FINANCIAL CALENDAR Consolidated Financial Statements and Draft
Financial Statements as at 31 December 2017;
Dividend proposal for 2017; Report on Remu-
neration 2018; Report on Corporate Gover-
nance and Ownership Structure 2017; Sustai-
nability Report 2017
12 MARCH 2018Board of Directors
Press Release and Conference Call*
Shareholders’ Meeting
19 APRIL 2018Press Release**
First quarter 2018 Report
7 MAY 2018Board of Directors
8 MAY 2018Press Release and Conference Call***
FY2017 dividend
23 MAY 201Payment date
21 MAY 2018Ex-dividend date
2018-2024 Strategic Plan
12 JUNE 2018Board of Directors
13 JUNE 2018Press Release and Conference call***
Second quarter 2018 Report and Interim
Financial Report as at 30 June 2018
30 JULY 2018Board of Directors
31 JULY 2018Press Release and Conference Call***
Third quarter 2018 Report
5 NOVEMBER 2018Board of Directors
6 NOVEMBER 2018Press Release and Conference Call***
* Press release and conference call for the presentation of results to the financial community at the end of the Board of Directors’ meeting.** Press release issued at the end of Shareholders’ Meeting.*** Press release issued in the morning (non-trading hours); the Conference Call/Strategy Presentation for the pre-sentation of results to the financial community will be held in the afternoon on the same day.
The ITalgas shareholder - keepIng up To daTe and geTTIng Involved
14
Glossary
FINANCIAL TERMS
CASH FLOW INet cash flow from operating activities (cash flow ) is represented by the cash ge-nerated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs in the period that generated cash outflows).
EBIT (OPERATING PROFIT)Result of the operating performance, cal-culated as the sum of the values related to Net income, Income taxes, and Net finance costs excluding Net income from financial investments.
ADJUSTED EBIT (ADJUSTED OPERATING PROFIT)EBIT that components of the total income classified as special item will be subtracted from (as defined in the chapter “Comment on the economic and financial results” of this report).
EBITDA (GROSS OPERATING PROFIT)EBITDA, calculated as the sum of values re-lating to the Operating profit and Deprecia-tion and amortisation.
FREE CASH FLOWThe free cash flow represents the free cash flow of the company and is the difference between the cash flow from operating ac-tivities and the cash flow for investments in fixed assets.
NET FINANCIAL DEBTIndicator of capacity to cope with financial obligations, determined as the sum of the values relating to Short and long-term lo-ans, net of Cash and cash equivalents.
COMMERCIAL AND TECHNICAL TERMS
ATEM Minimum Geographical Areas for conducting tenders and assigning the gas distribution ser-vice calculated as 177 pursuant to the defini-tion of Article 1 of the Ministerial Decree of 19 January 2011. The Municipalities belonging to each area are listed in the Ministerial Decree of 18 October 2011.
CONCESSION The deed by which a Local authority entrusts a company to the management of a service which falls within the scope of the prerogati-ves of this Authority, and for which said com-pany assumes the operating risk.
LOCAL TENDERThe local tender is the only tender for the con-cession of the gas distribution service carried out in each of the 177 ATEM identified by De-cree of the Ministry of Economic Development on 19 January 2011, pursuant to Arts. 1 and 2 of the Decree of the Ministry of Economic Deve-lopment on 19 January 2011.Gas distributed or circulated Amount of gas redelivered to users of the distribution net-work at the redelivery points.
REGULATORY PERIODThis is the time period (usually four years) for which criteria are defined for setting tariffs for gas distribution services. The third regulation period ended on 31 December 2013. We are currently in the fourth regulatory period, which runs from 1 January 2014 to 31 December 2019.
REDELIVERY POINTThis is the point of demarcation between the gas distribution plant and the plant owned or ma-naged by the end user at which the distribution company redelivers gas transported for supply to the end user, and at which metering occurs.
GAS DISTRIBUTION SERVICEService of transporting natural gas through networks of local methane pipelines from one or more delivery points to redelivery points, generally at low pressure and in urban areas, for delivery to end users.
REGULATORY ASSET BASE (RAB)The term RAB (Regulatory Asset Base) refers to the value of net invested capital for regula-tory purposes, calculated on the basis of the rules defined by the Electricity, Gas and Water Authority (AEEGSI) for determining the refe-rence tariff. WACCWeighted Average Cost of Capital. Rate of re-turn on net invested capital
The following glossary focuses on financial, commercial and technical terms used in this publi-
cations. A comprehensive glossary is available online at www.italgas.it.
The ITalgas shareholder - glossary
15
CONTACTS:Investor Relations Department Corporate Secretary
[email protected] [email protected]
T. +39 02 8187 2012 T. +39 02 8187 2027
Via Carlo Bo, 11 Via Carlo Bo, 11
20143 Milano 20143 Milano
Shareholders who wish to get more information about the Italgas
shareholders’ meeting may also contact the Company by telephone
(+39 06 4217 1805).
ITALGAS S.p.A.Registered Office: Via Carlo Bo, 1120143 Milan
Share Capital Euro 1,001,231,518.44
VAT registration number 09540420966
www.italgas.it
This document has been published with information updated through 29 March 2018.
BORSA ITALIANAwww.borsaitaliana.it
CONSOBwww.consob.it
AUTORITÀ PER L’ENERGIA ELETTRICAIL GAS E IL SISTEMA IDRICOwww.autorita.energia.it
EMARKET STORAGE SYSTEM OF REGULATED INFORMATIONwww.emarketstorage.com
The Italgas Shareholder is a publication managed
by the Investor Relations Department.
Concept, editorial support and layout: Blue Arrow, Milan
Useful sources
The ITalgas shareholder - useful sources
ITALGAS.IT