Creating Value

The creation of sustainable value added over time is possible thanks to a series of actions aimed at improving our way of doing business, transforming them into a competitive advantage.
Improving processes, technology and business practices for increasingly reliable and high-performance plants.
An eye on technological innovation to prepare our path towards the future.

Shareholder Remuneration in comparison with annual financial results

Shareholder Remuneration in comparison with annual financial results
Our Group has always maintained a careful asset management policy in order to guarantee the long-term continuity of the group.

An analysis of the financial results over the years and related distributed dividends provides further evidence of the success of this approach.

In recent years, ERG has been able to satisfactorily remunerate the capital invested by its shareholders. In 2019, an ordinary dividend of EUR 0.75 per share was paid out (EUR 0.75 in 2018).
Source: Consolidated Non-Financial Statement drawn up pursuant to Italian Leg. Decree 254/2016 (2019 Sustainability Report)

Economic and financial results

    2019 2018 2017 restated
Core business revenue million EUR 1,022 1,027 1,048
EBITDA (restated)  million EUR 504 491 472
EBIT (restated)  million EUR 205 216 220
Net Profit million EUR 33 133 108
of which attributable to the owners of the parent million EUR 32 133 108
Profit att. to the owners of the parent at replacement cost (1) million EUR 104 107 117
Total net financial indebtedness  million EUR 1,554 1,343 1,233
Net invested capital million EUR 3,340 3,172 3,110
Investments  (2) million EUR 432 510 94
Financial leverage   47% 42% 40%

(1) Does not include inventory gains (losses) of TotalErg, non-recurring items and related applicable theoretical taxes.
(2) Property, plant and equipment and intangible assets and investments in Merger & Acquisition operations.

Total revenues in 2019 includes EUR 93 thousand in grants from Public Administration or the European Community for employee training. ERG Group does not donate to political parties

Economic Value Generated and distributed

Current amount (EUR million) 2019 2018 2017
Revenue 1,035 1,050 1,065
Economic value distributed (744) (795) (746)
Production costs (383) (426) (450)
Remuneration of personnel (81) (80) (79)
Remuneration of public administration (57) (54) (51)
Remuneration of debt capital (1) (107) (105) (89)
Remuneration of risk capital (2) (112) (128) (75)
Remuneration for the community (2) (2) (2)
Economic value withheld by the Group 291 255 319
Amortisation and depreciation 299 275 252
Remuneration of the company (8) (21) 67

(1) Interest paid and other financial expenses to service debt.
(2) Dividends distributed by the Group net of extraordinary disbursements.

 

Current amount (EUR million) 2019 2018 2017
Net value added 1,035 1,050 1,065
Production costs (383) (426) (450)
Remuneration of personnel (81) (80) (79)
Remuneration of public administration (57) (54) (51)
Remuneration of debt capital (107) (105) (89)
Remuneration for the community (3) (2) (2)
Amortisation and depreciation (299) (275) (252)
Profit before non-controlling interests 105 108 142
Profit attributable to non-controlling interests - - -
Profit attributable to the parent 105 108 142

 

ERG distribution of added value

ERG distribution of added value

ERG Green Bond: the strength of credibility

ERG Green Bond: the strength of credibility
In 2019, in line with our 2018-2022 Business Plan we reached an important fund-raising target: we finalised the launch of green bonds for a total of EUR 500 million, maturing in April 2025 and aimed exclusively at institutional investors.

Using the Green Bond Framework certified by Vigeo Eiris, the leading European social and environmental rating agency, we have committed to allocate the proceeds generated by the bond to refinancing our investments made in the last three years in the wind and solar sectors. The results are remarkable: the Green Bonds received around 270 orders for a total amount of EUR 3.2 billion (over six times the original amount of EUR 500 million), with orders peaking at EUR 3.5 billion before the announcement of the final price.

Thanks to the success of the bonds, returns of 1.933% were established (1.80% spread), around 0.35% lower than the initial pricing indications established when the bond issue was launched and in line with the returns offered by Italian government bonds of equal duration. Avoided CO2 is the indicator which, when drawing up reports, highlights the added value of our plants in the fight against climate change, and is the same indicator used when reporting the benefits of an ESG loan issued at the end of 2018 for EUR 240 million.

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