Italgas (IG) Strategy Update summary

Strategic vision and sector evolution

• Announced a bold new horizon focused on innovation, growth, and sustainability, aiming for net zero and sector leadership.

• Emphasized a legacy of prioritizing action, results, and community development, with a strong capacity for constant evolution.

• Highlighted transformation into a global Network Tech Company and recognition as an international benchmark.

Transformational acquisition of 2i Rete Gas

• Acquisition of 2i Rete Gas positions the group as the leading gas distributor in Europe, with an equity value of €2.06bn and enterprise value of €5.3bn; closing expected in 1H 2025 pending regulatory approvals.

• Transaction fully financed via €2.2bn bridge facility and €1.0bn rights issue, with a stand-by underwriting agreement in place, preserving credit rating.

• Integration will create a European gas distribution leader, serving 12.9 million customers and distributing over 13 bcm of gas annually across 154,000 km of networks.

• EPS accretion expected from 2026, reaching up to 15% by 2029, driven by €200 million synergies and operational efficiencies.

• Additional €80 million in revenues by 2030 from investments to digitize 2i Rete Gas to match group standards.

Strategic plan to 2030 and investment priorities

• €15.6 billion investment planned for 2024-2030, nearly doubling the previous plan, focused on network development, digitization, and sector expansion.

• €12.8 billion allocated to Italian gas network, including €2.7 billion for digitization and AI-driven systems.

• Greek operations to receive €1bn investments by 2030, expanding the network by 40% and increasing customers to nearly 1 million.

• Water business targets €90mn EBITDA by 2030, with €450 million for M&A and technology upgrades.

• €300 million allocated for energy efficiency, focusing on digital solutions for residential, public, and SME sectors.