9M 29 CONSOLIDATED RESULTS Conference Call Pieve di Soligo, November 13 th 29 Pag. 1
Contents Financial highlights Ascopiave Group structure as of September 3 th 29 Pag. 2 9M 29 income statement Balance sheet Operating Data Revenues Gross margin on gas activities EBITDA Personnel Capex and lenght of the gas distribution network Net Financial Position
Ascopiave Group structure as of September, 3 th 29 Global Energy Group 89% 1% 1% 51% 17% 1% 1% 49% Ascoenergy Group 49% 1% 27.6% 1% 1% 1% New acquisitions / company setups of 9M 29 7% 51% 1% distribution, heating management distribution ACTIVITIES sales and electricity sales sales shipping Photovoltaic power plants 1% Heating management Development of gas storage site distribution, gas sales Pag. 3
Comparison of 9M 28 and 9M 29 consolidation areas 9M 28: 1stQ 28 2ndQ 28 3rdQ 28 9M 28 Consolidated Companies Edigas Esercizio Distribuzione Edigas Due Veritas Energia Metano Nove Vendita Pasubio Servizi 9M 29: 1stQ 29 2ndQ 29 3rdQ 29 9M 28 Consolidated Companies Edigas Esercizio Distribuzione Edigas Due Veritas Energia Metano Nove Vendita Pasubio Servizi Chg of consolidation area: 1stQ 29 2ndQ 29 3rdQ 29 9M 28 Consolidated Companies Edigas Esercizio Distribuzione Edigas Due Veritas Energia Metano Nove Vendita Pasubio Servizi Pag. 4
9M 29 income statement (Thousand of Euro) 9M 29 9M 28 Chg Chg % Revenues 557.849 537.45 2.399 +3,8% (Cost of raw materials and consumables) (46.72) (465.168) 4.448-1,% (Cost of services) (39.221) (24.733) (14.489) +58,6% (Cost of personnel) (13.765) (11.282) (2.483) +22,% (Other operating costs) (5.849) (7.126) 1.277-17,9% Other operating income 13 255 (152) -59,6% EBITDA 38.396 29.396 9. +3,6% (Depreciations and amortizations) (11.955) (1.717) (1.237) +11,5% (Provisions) (2.435) (2.418) (17) +,7% EBIT 24.7 16.26 7.747 +47,6% Financial income / (expenses) (145) (3.961) 3.816-96,3% EBT 23.862 12.299 11.563 +94,% (Income taxes) (8.781) (4.485) (4.296) +95,8% (Net income of minorities) (63) 93 (696) -746,4% Net income of the Group 14.478 7.98 6.57 +83,1% Pag. 5
Balance sheet (Thousand of Euro) 3/9/29 31/12/28 Chg Chg % Tangible assets 325.243 319.279 5.964 +1,9% Non tangible assets 115.799 92.776 23.23 +24,8% Other fixed assets 15.963 13.86 2.13 +15,2% Fixed assets 457.4 425.915 31.9 +7,3% Operating current assets 124.168 281.573 (157.45) -55,9% (Operating current liabilities) (11.669) (259.641) 157.973-6,8% (Operating non current liabilities) (42.859) (41.165) (1.695) +4,1% Net working capital (2.359) (19.233) (1.127) +5,9% Total capital employed 436.645 46.682 29.963 +7,4% Group shareholders equity 358.59 359.18 (1.49) -,3% Minorities 2.859 2.325 534 +23,% Net financial position 75.727 45.249 3.477 +67,4% Total sources 436.645 46.682 29.963 +7,4% Pag. 6
Contents Financial highlights Operating Data Volumes of gas distributed Volumes of gas sold to end customers Volumes of gas sold on trading and wholesaling activities Number of gas sales customers Revenues Gross margin on gas activities Personnel Capex and lenght of the gas distribution network Net Financial Position Pag. 7
Volumes of gas distributed Volumes of gas distributed (Million of standard cubic meters) = -11,4 8-2,% 6 557, 568,4 27,3 4 529,7 568,4 2 9M 29 9M 28 New consolidation area 9M 28 consolidation area (*) 7 6 5 4 3 2 1 Volumes of gas distributed: hystorical trend 57,7 578,2 571,8 53,1 487,5 516,5 492,2 471,1 9M 22 9M 23 (Million of standard cubic meters) 9M 24 9M 25 9M 26 9M 27 9M 28 532,2 Avg. 2-8 9M 29 (**) -7,5% (*) 1stH 29 of Edigas Esercizio Distribuzione (**) Excluding volumes of natural gas distributed by ASM DG and Edigas Esercizio Distribuzione Pag. 8
Volumes of gas sold to end customers Volumes of gas sold to end customers (Million of standard cubic meters) = -11,6 = +34,1 8-2,% 8 +1,3% 6 564,3 575,9 6 4,4 4 4 364,5 33,4 523,9 575,9 48,1 2 2 316,4 33,4 9M 29 9M 28 9M 29 9M 28 New consolidation area New consolidation area (*) (**) 9M 28 consolidation area 9M 28 consolidation area sold to end customers Companies consolidated at 1% sold to end customers Companies consolidated at 49%-51% (*) 1stH 29 of Edigas Due + 9M 29 of MetanoNove Vendita + 3rdQ 29 of Pasubio Servizi (**) 9M 29 of Veritas Energia Pag. 9
Pag. 1 Volumes of gas sold on trading and wholesaling activities Volumes of gas sold on trading and wholesaling activities (Million of standard cubic meters) 1. = -155,4-25,8% 8 63,2 6 447,8 4 2 9M 29 9M 28 sold on trading and wholesaling activities
Number of gas sales customers 75. 6. 45. 3. 15. sales customers Companies consolidated at 1% 455.685 65.361 +16,7% 39.65 39.324 39.65 3/9/29 31/12/28 75. 6. 45. 3. 15. sales customers Companies consolidated at 49%-51% = +65.8 = +22.843 294.328 23.112 +8,4% 271.485 271.216 271.485 3/9/29 31/12/28 New consolidation area New consolidation area (*) (**) Consolidation area at 31.12.28 Consolidation area at 31.12.28 (*) Pasubio Servizi + MetanoNove Vendita ; (**) Veritas Energia Pag. 11
Pag. 12 Contents Financial highlights Operating Data Revenues Revenues bridge Gross margin on gas activities EBITDA Personnel Capex and lenght of the gas distribution network Net Financial Position
Revenues bridge (1) 8. 6. 537.45 4. Revenues bridge (Thousand of Euro) = +2.399 +3,8% 24.456 5.57-19.557 9.93 557.849 2. 9M 28 Revenues from gas sales to end customers Revenues from gas trading and wholesaling activities Revenues from electricity sales Other revenues 9M 29 Pag. 13
Revenues bridge (2) 8. Pag. 14 6. 4. 2. Revenues bridge (Thousand of Euro) = +2.399 +3,8% 537.45 38.961-18.562 9M 28 Chg in revenues of 9M 28 consolidation area Revenues of new consolidation area 557.849 9M 29
Contents Financial highlights Operating Data Revenues Gross margin on gas activities EBITDA Gross margin on gas activities in prev. conf. call presentations New gas distribution tariff regulation: perequation system Gross margin on gas activities: new definition 9M 28 reconciliation Gross margin on gas sales Distribution tariff revenues Gross margin on gas sales bridge Distribution tariff revenues bridge Personnel Capex and lenght of the gas distribution network Net Financial Position Pag. 15
Gross margin on gas activities in previous conference call presentations Gross margin on gas activities in previous conference call presentations = sum of: gross margin on gas sales and trading activities got by the Group gas sales companies = sales revenues purchase costs Costs for gas distribution tariffs paid to gas distribution companies; revenues got by the Group gas distribution companies by applying distribution tariffs to the Group gas sales companies (intercompany revenues), so excluding revenues got by applying gas distribution tariffs to other gas sales companies (third parties revenues) = Intercompany revenues from gas distribution tariffs intercompany Contribution to national funds Group Group Distribution Distribution S.B.U. S.B.U. Revenues from distribution tariffs parties) sales sales companies companies parties) parties) Revenues from distribution tariffs (intercompany) = Cost for distribution tariffs (intercompany) Group Group Sales Sales S.B.U. S.B.U. Cost for distribution tariffs parties)) Cost for gas purchase parties)) distribution distribution companies companies parties) parties) shipping shipping companies companies parties) parties) Pag. 16
New gas distribution tariffs regulation: perequation system Both gross margin on gas sales and revenues from distribution tariffs were previously linked to the volumes of gas sold. Now, due to the change of gas distribution tariffs regulation regulatory period), gas distribution revenues get by the gas distribution companies are no longer linked to volumes of gas sold / distributed. New regoulation provides a revenues perequation system - managed by a national authority (i.e. Cassa Conguaglio per il Settore Elettrico ) - that makes the gas distribution revenues equal the pre-determined Revenues Costraint ( Vincolo dei Ricavi or VRT ) Cassa Cassa Conguaglio Conguaglio Elettrico Elettrico party) party) Revenues distribution adjustment (+ or -) for perequation (*) Revenues from distribution tariffs (intercompany) Group Group Distribution Distribution S.B.U. S.B.U. Group Group Sales Sales S.B.U. S.B.U. (*) Perequation system provides distribution companies 1) receive money from Cassa Conguaglio if the amount of distribution tariffs applied is lower than VRT and 2) pay money to Cassa Conguaglio if the same amount is higher than VRT = Cost for distribution tariffs (intercompany) Revenues from distribution tariffs parties) Cost for distribution tariffs parties)) Cost for gas purchase parties)) sales sales companies companies parties) parties) distribution distribution companies companies parties) parties) shipping shipping companies companies parties) parties) Pag. 17
Gross margin on gas activities: new definition (1) Because under the new gas distribution tariffs regulation, gas distribution revenues got by the gas distribution companies are no longer linked to volumes of gas distributed, it makes no sense to sum revenues from gas distribution revenues and gross margin from gas sales and trading activities. For this reason, we propose a new method to analyse the gas Group Gross Margin, by considering separately: GROSS MARGIN ON GAS SALES i.e. the gross margin on gas sales and trading activities got by the Group gas sales companies that still mainly depends on volumes of gas sold (although fixed component of gas sales selling price increased its level (Res. AEEG n. 64/9), so reducing dependence of gas selling price on volume of gas sold). GAS DISTRIBUTION TARIFF REVENUES i.e. the revenues got by the Group gas distribution companies by applying distribution tariffs to gas sales companies including revenues got by applying gas distribution tariffs both to the Group gas sales companies (intercompany revenues) and to other gas sales companies (third parties revenues) and considering the positive or negative perequation amount to Cassa Conguaglio. Pag. 18
Gross margin on gas activities: new definition (2) GROSS MARGIN ON GAS SALES = Revenues from gas sales (*) purchase costs Intercompany distribution costs (**) Distribution costs to third parties GAS DISTRIBUTION TARIFF REVENUES = Intercompany revenues from distribution tariffs (**) + Revenues from distribution tariffs to third parties +/- Perequation amount Contribution to national fund (***) Cassa Cassa Conguaglio Conguaglio Elettrico Elettrico party) party) Perquation amount Revenues from distribution tariffs (intercompany) Group Group Distribution Distribution S.B.U. S.B.U. = Cost for distribution tariffs (intercompany) Group Group Sales Sales S.B.U. S.B.U. Revenues from distribution tariffs parties) Cost for distribution tariffs parties)) Cost for gas purchase parties)) sales sales companies companies parties) parties) distribution distribution companies companies parties) parties) shipping shipping companies companies parties) parties) (*) Revenues from gas sales to end customers, gas wholesales to other gas sales companies and gas trading; (**) Intercompany distribution costs equal intercompany revenues from distribution cost (intercompany elided items); (***) Starting from 29 contribution to national funds are zero, because distribution tariffs are net of these components. Pag. 19
Gross margin on gas activities: new definition (3) Difference between the previous and the present method of analysis of the gross margin on gas sales and distribution activities Whole Gross Margin on Sales and Distribution PREVIOUS CONFERENCE CALLS Gross margin on gas sales Revenues from gas distribution tariffs (intercompany) PRESENT CONFERENCE CALL Gross margin on gas sales Revenues from gas distribution tariffs (intercompany) Revenues from gas distribution tariffs parties) Gross margin on gas sales distribution tariff revenues Perequation amount (*) (*) Perequation amount could be positive (as represented in the present illustration) or negative Pag. 2
9M 28 reconciliation Period (Thousand of Euro) 9M 28 9M 28 Method of analysis Previous Conf. Call Present Conf. Call (*) Revenues from gas sales 49.992 49.992 (**) ( purchase costs) (435.266) (435.266) (Distribution costs - intercompany) (28.5) (28.5) (Distribution costs to third parties) (12.394) (12.394) Gross margin on gas sales (A) 15.283 15.283 Tariffs applied to sales companies (intercompany) 28.5 28.5 (Contribution to national funds) (1.99) (1.99) distribution tariff revenues (intercompany) (B) 26.95 26.95 Tariffs applied to sales companies (third parties) 2.275 Perequation amount (+ / -) distribution tariff revenues (third parties) + perequation (C) 2.275 Gross margin on gas distribution and sales (A) + (B) 42.233 Gross margin on gas sales (A) 15.283 distribution tariff revenues (B) + (C) 29.225 (*) Revenues before elisions; (**) purchase costs before elisions Pag. 21
Gross margin on gas sales (Thousand of Euro) 9M 29 9M 28 Chg Chg % Revenues from gas sales to end customers 334.192 299.418 34.774 +11,6% Revenues from gas trading and wholesaling 172.18 191.574 (19.557) -1,2% Revenues from gas sales 56.21 49.992 15.217 +3,1% ( purchase costs) (442.87) (435.266) (7.64) +1,7% (Distribution costs) (45.19) (4.444) (4.746) +11,7% Gross Margin on Sales 18.15 15.283 2.868 +18,8% 1) Change of consolidation area (1stH 29 of Edigas Due S.p.A. + 9M 29 of Veritas Energia S.r.l. + 3rdQ 29 of Pasubio Servizi S.r.l.) = + Euro 1,7 mln; 2) Impact of new tariff system for domestic clients (so called mercato tutelato ) provided by Res. AEEG n. 64/9 (change of QVD tariff component) = + Euro 3,5 mln; 3) Decrease of margin on gas trading and wholesales activities: - Euro,4 mln. 4) Decrease of gas volumes sold, decrease of margin on business segment and other changes: - Euro 1,9 mln. Pag. 22
Distribution tariff revenues (1) (Thousand of Euro) 9M 29 9M 28 Chg Chg % Tariffs applied to sales companies 34.242 3.285 3.957 +13,1% (Contribution to national funds) - (1.99) 1.99-1,% Perequation amount (+ / -) 6.314-6.314 n.a. distribution tariff revenues 4.556 29.186 11.37 +39,% The increase of gas distribution tariff revenues are due to: 1) Change of consolidation area (1stH 29 of Edigas Esercizio Distribuzione S.p.A.): + Euro 2,2 mln; 2) Change of gas distribution tariffs applied to gas sales companies: + Euro 3,9 Euro; 3) Change of accounting method for recording gas distribution tariff revenues: + Euro 5,3 Euro. Change of accounting method affect only interim results, so there will be no impact of the new accounting method on the coming yearly financial report results (FY 29). Pag. 23
Distribution tariff revenues (2) Different accounting methods 1) Perequation amount is such that 9M 29 distribution tariff method is nine twelfth of the whole FY 29 Revenues Constraint ( Vincolo dei Ricavi or VRT ); 2) 9M 28 distribution tariff revenues are instead proportional to volumes of gas distributed in the period. Normalization of 9M 28 gas distribution revenues In order to estimate the impact of the change in accounting method we normalize 9M 28 gas distribution tariffs revenues adjusting them by adding a pro-forma perequation amount such that total distribution tariff revenues of the period equals nine twelfth of the distribution revenues realized by the Group in the entire FY 28. In this way the change in gas distribution tariff revenues increase of Euro 6,1 mln (+17,6%). (Thousand of Euro) 9M 29 9M 28 Chg Chg % Tariffs applied to sales companies 34.242 3.285 3.957 +13,1% (Contribution to national funds) - (1.99) 1.99-1,% Perequation amount (+ / -) 6.314 5.33 1.11 +19,1% (*) distribution tariff revenues 4.556 34.489 6.67 +17,6% (*) Total change = 6,1M = 2,2M (change of consolidation area) + 3,9M (change of gas distribution tariff on 9M 28 consolidation area) Pag. 24
Gross margin on gas sales bridge Gross margin on gas sales bridge (Thousand of Euro) = +2.868 25. +18,8% 2. 1.655 1.213 15.283 15. 1. 18.15 5. Gross margin on gas sales 9M 28 Change in gross margin on gas sales on 9M 28 consolidation area Gross margin on gas sales of new consolidation area Gross margin on gas sales 9M 29 Pag. 25
Distribution tariff revenues bridge Distribution tariff revenues bridge (Thousand of Euro) = +11.37 54. +39,% 2.127 9.243 36. 29.186 18. 4.556 distribution tariff revenues 9M 28 Change in gas distribution tariff revenues on 9M 28 consolidation area distribution tariff revenues of new consolidation area distribution tariff revenues 9M 29 Pag. 26
Pag. 27 Contents Financial highlights Operating Data Revenues Gross margin on gas activities EBITDA EBITDA bridge Personnel Capex and lenght of the gas distribution network Net Financial Position
EBITDA bridge (1) 6. 5. 4. 3. 2. 1. 29.396 EBITDA 9M 28 11.37 EBITDA bridge (Thousand of Euro) 2.868-5.237 Gross margin on gas sales = +9. +3,6% distribution tariff revenues Other changes 38.396 EBITDA 9M 29 Other changes: p Net operating costs of new consolidation area: - 2,3M: p Increase of net operating costs of 9M 28 consolidation area: - 3,M: Decrease of revenues for distribution network connection services: - 1,1M; Increase of personnel cost: - 1,2M 9M 28 Bimetano Servizi goodwill adjustment (extraordinary item): + 1,3M; Increase of net cost for white certificates: -,4M; Decrease of gross margin in heating management business: -,9 M Other changes: -,7M. Pag. 28
EBITDA bridge (2) Pag. 29 54. 36. 18. EBITDA bridge (Thousand of Euro) = +9. +3,6% 7.491 1.59 29.396 EBITDA 9M 28 Chg in EBITDA of 9M 28 consolidation area EBITDA of new consolidation area 38.396 EBITDA 9M 29
Contents Pag. 3 Financial highlights Operating Data Revenues Gross margin on gas activities EBITDA Personnel Number of employees Cost of Personnel Capex and lenght of the gas distribution network Net Financial Position
Number of employees 6 5 4 3 2 1 No. of employees Companies consolidated at 1% 391 9 = +22 +6,% 369 382 369 3/9/29 31/12/28 No. of employees Companies consolidated at 49%-51% 6 5 4 3 2 1 27 11 = +28 +38,4% 73 74 73 3/9/29 31/12/28 New consolidation area New consolidation area (*) (**) Consolidation area at 31.12.28 Consolidation area at 31.12.28 (*) Pasubio Servizi; (**) Veritas Energia Pag. 31
Cost of personnel 2. 15. 1. 5. Cost of personnel (Thousand of Euro) = +2.483 +22,% 13.765 11.282 1.35 12.459 11.282 9M 29 9M 28 New consolidation area 9M 28 consolidation area (*) (*) 1stH 29 of Edigas Due and Edigas Esercizio Distribuzione + 9M 29 of Veritas Energia and MetanoNove Vendita + 3rdQ 29 of Pasubio Servizi Pag. 32
Pag. 33 Contents Financial highlights Operating Data Revenues Gross margin on gas activities EBITDA Personnel Capex and lenght of the gas distribution network Net Financial Position
Capex and lenght of the gas distribution network 25. 2. 17.635 Capex (*) Length of the gas distribution network (Thousand of Euro) (km) = +4.984 +39,4% 1.8 (**) 9. 15. 12.651 7.2 5.4 1. 3.6 5. 1.8 = +121 +1,6% 7.498 7.377 9M 29 9M 28 3/9/29 31/12/28 (*) Excluding network extension in new urbanized areas that according to IAS are operating costs and not investments (**) Tangible assets: 15.9 million of Euro; Intangible assets: 1.7 million of Euro Pag. 34
Pag. 35 Contents Financial highlights Operating Data Revenues Gross margin on gas activities EBITDA Personnel Capex and lenght of the gas distribution network Net Financial Position
Net Financial Position (1) 3 2 1-1 -2-3 -4-5 -6-45,2 (Million of Euro) 28,9-17,6 -,7 = -3,5 +67,4% 2, -19, -7,1-8 -9 31/12/28 Cash flow Capex Change in net Change in net working capital working capital (operating activities) (fiscal activities) Change in shareholders' equity -24,2 Acquisitions (price) NFP from acquisitions -75,7 3/9/29 Pag. 36
Net Financial Position (2) (Thousand of Euro) 9M 28 consolidation area (excluding Estenergy S.p.A.) 3/9/29 31/12/28 Chg Chg % (64.578) (32.715) (31.863) +97,4% Estenergy S.p.A. (49%) (14.219) (12.534) (1.685) +13,4% 9M 28 consolidated companies (78.797) (45.249) (33.548) +74,1% New consolidated companies 3.7-3.7 n.a. Group NFP (75.727) (45.249) (3.477) +67,4% Pag. 37