Integrated Annual Report 2021
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.
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 Other revenue from the Total revenue. Other revenue is revenue from unregulated activities, 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 entered in 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”. |
| Reclassified operating costs | Operating performance indicator representing the legally-required operating costs minus costs for construction and enhancement of the infrastructure recognised pursuant to IFRIC 12 and any other components entered in 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 from net profit the income taxes, net income from equity investments, net financial expense, amortisation, depreciation and impairment. |
| 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 from net profit the income taxes, net income from equity investments and net financial expense. |
| 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 | Indicator of the profitability of the company’s shares, calculated as the 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 current and non-financial assets and liabilities. 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. It is defined as the sum of the values relating to items of Property, plant and equipment, Intangible assets net of Other liabilities relating to connection contributions, Equity investments and Net debt relating to investment activities. |
| Net invested capital | A capital indicator that expresses the investments made by the company in operations. This is defined as 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 flow from operating activities | It represents the net cash flow from the operating activity of the mandatory schemes, excluding the effects deriving from the application of the IFRS 15 accounting standard (Other liabilities relating to connection contributions). |
| Free cash flow before M&A transactions | It represents the cash surplus or deficit remaining after the financing of investments, excluding the flow deriving from Merger and Acquisition transactions. |
| Free cash flow | It represents the cash surplus or deficit remaining after financing of the investments. |
| Net financial debt | Determined as the sum of short and long-term financial debt, net of cash and cash equivalents and current financial assets, such as, for example, securities held for trading (note 18). |
