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Comment on the economic and financial results and other information > Non-GAAP Measures
Alternative performance indicators
On 5 October 2015, the ESMA (European Security and Markets Authority) published its guidance (ESMA/2015/1415) on the presentation criteria for alternative performance indicators (API or APM), which replaces the CESR/05-178b recommendations from 3 July 2016. The NON-GAAP financial report must be considered complementary to and not replacing the reports prepared according to IAS – IFRS. On 17 April 2020, the ESMA issued a document containing a few Q&As on the Non-GAAP measures in order to support issuers applying them in the context of the COVID-19 pandemic. Italgas did not consider it necessary to modify the Non-GAAP measures already adopted.
The alternative performance indicator adopted in this report are illustrated below.
Alternative economic performance indicators | Description |
Gas Distribution regulated revenue | Operating performance indicator representing revenue from regulated gas distribution activities, calculated by subtracting the revenue for construction and enhancement of infrastructures recognised pursuant to IFRIC 12, the release of connection contributions relating to the financial year and any other components of the statement of reconciliation of the subsequent chapter “Reconciliation of the reclassified income statement, statement of financial position and statement of cash flows” from core business revenue and other revenue and income. |
Reclassified operating costs | These are the costs deriving from regulated gas distribution activities, calculated by subtracting the costs of construction and improvement of infrastructure recognised pursuant to IFRIC 12 and any other components of the statement of reconciliation of the income statement of the subsequent chapter “Reconciliation of the reclassified income statement, statement of financial position and statement of cash flows”. |
EBITDA | Operating performance indicator, calculated by subtracting operating costs from revenue. |
Adjusted EBITDA | Operating performance indicator, calculated by subtracting income components classified as special items (as defined in the chapter “Comment on the economic and financial results” of this Report) from EBITDA. |
EBIT | Operating performance indicator, calculated by subtracting operating costs, amortisation, depreciation and impairment from revenue. |
Adjusted EBIT | Operating performance indicator, calculated by subtracting income components classified as special items (as defined in the chapter “Comment on the economic and financial results” of this Report) from EBIT. |
Adjusted Earnings per Share | Profit indicator of the company’s share which indicates the degree of success of the business activities and in the equity markets. The indicator is calculated as a ratio between the adjusted net profit attributable to the Group and the total number of shares. |
Alternative capital performance indicators | Description |
Net working capital | A capital indicator that expresses the capital employed in non-financial current assets and liabilities and indicates the company’s short-term balance. This is defined as the sum of the values relating to trade receivables and payables, inventories, tax receivables and payables, provisions for risks and charges, deferred tax assets, deferred tax liabilities and other assets and liabilities. |
Fixed capital | A capital indicator that expresses the total fixed assets. Fixed capital is defined as the sum of the values relating to items of property, plant and equipment, intangible assets net of connection contributions, equity investments and net debt relating to investment activities. |
Net invested capital | A capital indicator that expresses net investments of an operating nature, represented by the sum of the values related to fixed capital, net working capital, provisions for employee benefits and assets held for sale and directly related liabilities. |
Alternative financial performance indicators | Description |
Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs from operating activities | It represents the Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs from the operating activity of the mandatory schemes excluding the effects deriving from the application of the IFRS 15 accounting standard. |
Free Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs before M&A transactions | It is the cash representing the difference between the Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs from operating activities and the net Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs from investment activities excluding the flow resulting from mergers and acquisitions. |
Free Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs | The free Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs representing the difference between the Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs from operating activities and the net Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs from investment activities. |
Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs for the year | Represents the Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs for the year and is the difference between the free Cash flowNet cash flow from operating activities is represented by the cash generated by a company over a certain period of time. Specifically, the difference between current inflows (mainly cash revenue) and current cash outflows (costs and changes in financial payables and receivables for the year, including reimbursements for leased assets pursuant to IFRS 16. |
Net financial debt | Determined as the sum of short- and long-term financial debt, financial liabilities for leases pursuant to IFRS 16 (gross financial debt) and cash and cash equivalents. |