Funding needs: 8.1 €B between 2025 and 2035
Use of the capital markets to refinance existing and incremental debt, exploiting the most suitable instruments to provide diversification of sources and investors
- Value from assets
- Sustainable growth
- Effective finance strategy
- Shareholders return
Value from assets
Infrastructures, people and businesses at the core of our commitment for ecological transition
The industrial synergies between our businesses enable the creation of ecological transition models.
The quality and renewal of our assets make the generation of value for stakeholders and territories tangible.
Portfolio of activities, excellent positioning for critical mass and quality of assets.
Generation
~2.5 GW of RES installed capacity
1.6GW
Hydroelectric capacity
0.3GW
Photovoltaic capacity
0.3GW
Wind capacity
6,7GW
Thermoelectric capacity
Market
Leader for quality and customer satisfaction
1.9M
Electricity Customers
1.6M
Gas Customers
National operator in energy and material recovery
3.9M
Inhabitants served
1.8Mton
Waste collected
3.6Mton
Waste disposed of
2.1TWh
Electricity generated by WTE and other plants
1.5TWht
Heat generated by WTE and other plants
Networks
Incumbent in the key areas
11TWh
Electricity distributed
3Bm3
Gas distributed
70Mm3
Water distributed
1.0€B
Electricity RAB
1.6€B
Gas RAB
0.5€B
Water cycle RAB
Heat
1st domestic operator
2.9TWh
Heat volumes sales
0.7TWh
Electricity production from cogeneration plants
Results
In 2023, the A2A Group achieved excellent economic and financial results thanks to the excellent performance of the Generation & Trading and Market Business Units and the positive contribution of the other Business Units, ending the year with the best results ever and a net profit up 64% compared to 2022.
Sustainable growth
Infrastructures, people and businesses at the core of our commitment for ecological transition
We develop infrastructures on our territories to support people and businesses in electrification and decarbonisation by encouraging circular economy models.
With the update of the 2024-35 Strategic Plan, we confirm our ambition by maintaining the goals for 2035
Industrial Target
3.4€B
Electricity network RAB @2035
5.7GW
Renewables @2035
>7Mton
Waste treated @2035
Economic Targets
22€B
CAPEX 2024-35
3.3€B
EBITDA @ 2035
>1€B
Net Income @2035
Strategic Pillars of the Plan confirmed to support the ecological transition with an investment plan of 22 billion euros for 2024-2035
Circular economy
6 €B CAPEX 2024-2035
Strategic targets @2035
Waste
- >7 Mton Total Waste treated
- 3.0 TWhe Energy recovered
- >2 Mton Material recovered
- ~75% Separate collection index
Water
- 13 m3 Water leakage by km/day
- ~60% Green heat
Energy transition
Towards greater electrification of consumption and greener energy
16 €B CAPEX 2024-2035
Strategic targets @2035
Networks
- 3.4 €B Electricity network RAB
- 2.1 M Electricity POD
Energy
- 5.7 GW RES capacity
- 4.7 €B CAPEX FER
Customer
- >5 M Customer Base
- 800 k acquisitions/year ‘25-35
Outlook 2024
The results of the first nine months of 2024 of the A2A Group confirm excellent economic and financial performance with an increase in operating margins, driven by a significant increase in the production of energy from renewable sources as a result of high hydraulicityand the positive contribution of the energy retail sector, together with an improvement in the financial structure, with a decrease in the NFP/EBITDA ratio.
The excellent operating results were achieved thanks to the strategies to optimise the integrated production portfolio, the hedging carried out and the commercial development actions in an energy context of lower volatility compared to the previous year, characterised by falling prices with an average PUN in the 9 months of 102.0 €/MWh (down 21%) and the average cost of gas at the PSV at 33.6 €/MWh (down 21.6%).
The A2A Group constantly monitors the evolution of the context, which remains characterised by high economic and geopolitical uncertainty and, as done in other situations of volatility, promptly identifies possible mitigating actions, aimed at greater protection of the economic and financial position.
The excellent economic and financial performance achieved in the first nine months of 2024 has allowed us to proceed more quickly with the investments envisaged in our Plan. The results of this third quarter further confirm the consistency of our strategy: we have achieved an unprecedented net profit of over 700 million euros, exceeding what was recorded in the whole of 2023.
The Group is expected to achieve:
- an EBITDA of between 2.28 and 2.32 billion euro and
- Group Net Ordinary Income between 790 and 810 million euro.
The Group's commitment to sustainable finance continues: after successfully issuing the first l subordinated perpetual hybrid bond in green format and subscribing to the 600 million euro bridge loan in pool, not yet disbursed, in green format to finance the acquisition of assets relating to the electricity grid, in September 2024 A2A successfully signed a new bank loan in Green format - use of proceeds to support investments in the circular economy.
Effective finance strategy
The Strategic Plan is based on a considered and selective capital allocation to ensure sustainable growth in profitability, based on three guidelines:
- Strategic: investments are aligned with growth trends related to Circular economy and Energy transition, with a focus on infrastructures and low-volatility assets.
- Financial: investments guarantee adequate returns, with a spread over the Group's WACC of at least 200 basis points, contributing to the generation and stability of cash-flow.
- ESG: resources are earmarked for decarbonisation and combating climate change, reducing resource waste and protecting biodiversity through increasing alignment with European taxonomy.
Average expected cost of debt: <2.8% at 2027
The cost of debt, thanks to careful management, is always kept below 3.5%
Average debt duration: >5 years between 2024 and 2035
Over the plan horizon, the average duration of debt is always expected to be above five years, thus reducing the refinancing risk
Sustainable Finance: 100% of ESG debt on total at 2035
The Plan's Financial Strategy will further increase the weight of Sustainable Finance to more than 80% in 2027, more than 90% in 2030 and reach a fully sustainable debt share in 2035.
FFO/ NET DEBT | %
Shareholders return
The progress in the Group's structural growth path has allowed for an update of the dividend policy. The new policy provides for sustainable growth of the dividend per share of at least 4% per year during the plan period, starting from the dividend for the 2023 financial year, amounting to 0.0958 euros per share.
Dividends per shares I c€
