Italgas (IG) Investor presentation summary

Strategic vision and market environment

• Focus on innovation, AI transformation, and energy transition to strengthen leadership in gas distribution, water, and energy efficiency across Italy and Greece.

• Gas DSOs are positioned as key enablers of resilient, affordable, and secure energy systems amid rising global energy demand and the energy trilemma.

• Green gases, including biomethane and hydrogen, are prioritized as cost-effective decarbonization solutions leveraging existing infrastructure.

• EU and national policies support green gas development, energy efficiency, and diversification to enhance energy independence and resilience.

• Italian and Greek gas markets show resilient demand, with civil and network expansion driving growth and green gas penetration reshaping the energy mix.

AI transformation and operational synergies

• AI-driven cost efficiencies have raised synergy targets by 12%, aiming for €280mn in overall synergies, efficiencies, and productivity by 2032.

• Full IoT integration and digitization of network nodes are expected to generate over €120mn incremental revenues by 2032, supported by €1.2bn investments.

• AI adoption includes 55+ models in production, 2,000+ trained employees, and agentic systems for field and office automation.

• Implemented AI use cases in field scheduling and customer care have delivered significant efficiency gains, freeing staff and reducing handling times.

• Ongoing and future initiatives target further insourcing, asset digitization, and expanded AI deployment across all business processes.

Investment plan and capital allocation

• €13.0bn total investments planned for 2026-2032, a 14.6% increase, with 64% allocated to Italian gas distribution and 27% to digitization and AI.

• Investments focus on asset digitization, network development, water, and energy efficiency, unlocking operational efficiency and system resilience.

• Italian gas distribution sees double-digit investment growth, driven by accelerated tender awards and digitization opportunities.

• Greece targets >60% of capex for network extension and methanization, aiming to reach over 1 million households by 2032.

• Selective M&A strategy supports platform growth, leveraging expertise in digitization and integration.