A2A: Strategic Plan Update 2024-2035

Improved dividend policy with yearly growth of at least 4% 
Confirmed industrial and economic-financial targets of 2024-2035 Plan presented in March 2024
Ecological transition as a sustainable competitive choice
Employee Stock Ownership Plan in proposal for the next Shareholders’ meeting

• 22 billion euros investments planned over 2024-35 period, of which:
  - 6 for Circular economy
  - 16 for Energy transition
• CAPEX eligible for European Taxonomy: ~75% average over the Plan period
• EBITDA: 2.4 billion euros in 2027 and 3.3 billion euros in 2035
• Ordinary Net Income of 0.7 billion euros in 2027 and more than 1 billion euros in 2035
• NFP/EBITDA never exceeding 2.7x over the Plan period
• The Group confirms its commitment to maintaining the current rating

Milan, 12th November 2024 – The Board of Directors of A2A, chaired by Roberto Tasca, has examined and approved the 2024-2035 Strategic Plan Update which confirms the Group's long-term industrial growth objectives announced in March 2024 Plan. The strategy rests on the two pillars of Circular economy and Energy transition, while combining decarbonisation and competitiveness. The Plan confirms investments of 22 billion euros. 70% of development investments by 2030 is already authorised or in progress.

“We look at 2035 with a Plan that combines sustainable value generation, decarbonisation, innovation and contribution to the country's energy autonomy. These are strategic choices that drive our business and find confirmation in the Draghi’s Report for the relaunch of European competitiveness. Our long-term vision has allowed us to be solid facing the geopolitical and economic uncertainties of this historical phase, and to achieve excellent results, exceeding forecasts. For this reason, we have been able to carry out new investments anticipating construction sites and revising upwards the dividends for our investors” commented Renato Mazzoncini, CEO of A2A. “After having allocated significant resources for a broad welfare plan to support parenthood for Group employees, we have decided to propose a Stock Ownership Plan to the next Shareholders' meeting. We want to involve all colleagues in the company's growth path and share with them the results of a work built together.”

In a context that challenges operators with commodity price pressures and economic-regulatory dynamics, A2A views the ecological transition as a central pillar of its competitive strategy. The Strategic Plan Update is aligned with the objectives of the Draghi’s Report to increase European competitiveness: innovation, decarbonisation and autonomy. In area of innovation, the Group is engaged as anchor investor in the new "360 LIFE II" Venture Capital fund, with a target size of 200 million euros. A2A is at the forefront of decarbonisation through the development of new renewable plants while relying on PPAs (Power Purchase Agreements) and the investments in electricity networks fostering electrification of consumption. To promote greater European autonomy in the supply of critical raw materials, the Group - leveraging its leadership in the Circular economy - plans to expand its material recovery activities to lithium-ion batteries recycle by planning a new project to create new secondary raw materials for reuse in production processes.

The transition undertaken by the Group starts from the cities: cities are efficient ecosystems that make investments more effective both from an environmental and economic point of view, with over 50% of CAPEX over the Plan period concentrated in urban areas.

The Strategic Plan Update confirms the 22 billion euros CAPEX plan with 6 billion euros for Circular economy and 16 billion euros for Energy transition, which will allow the Group to reach 3.3 billion euros in EBITDA and a net income over 1 billion euros by 2035. A2A confirms its long-term ambitious industrial targets over the Plan period, of which 3.4 billion euros in electricity network RAB, 5.7 GW in renewable capacity and over 7 million tons of waste treated by 2035. The industrial transformation undertaken by the Group relies on the constant increasing annual investments in average of 0.8 billion euros in the period 2018-20 and 1.8 billion euros in the period 2031-35, increasingly oriented towards future-fit developments.


Circular economy

A2A aims to maintain leadership in the waste sector by treating over 7 million tons of waste in 2035 in over 70 plants, 11 of which are under construction. Investments in waste treatment aim to bridge the national infrastructure gap and promote waste enhancement through energy and material recovery. The Group will produce 2.7 TWh of electricity and 2.2 TWh of heat from waste. Moreover, in material recovery, over 1 million tons of waste in 2035 will be transformed into products and secondary raw materials. The development of district heating remains a key lever for the decarbonization of urban areas, with growth also driven by the recovery of waste heat from third-party industrial sources and new data centers. The Group’s commitment in Circular economy is completed by 0.5 billion euros investments aimed to reduce network leakages and develop new wastewater treatment plants.


Energy transition

The planned investments in the distribution infrastructures will enable the electricity RAB to overtake gas RAB in 2025, even thanks to the assets acquisition in Milan and Brescia areas planned in 2024. In line with the Group's future-fit growth guidelines, a potential gas asset divestment in the Brescia, Bergamo, Cremona, Pavia and Lodi areas is currently under evaluation.

The Group continues to support the electrification of consumption and RES development, with the goal of 5.7 GW installed RES capacity by 2035: the investments aim to promote renewable energy by making it more widespread, accessible and less subject to market volatility, also thanks to long-term hedging strategies (PPA – Power Purchase Agreements) and incentives mechanisms. Lastly, the Group plans to expand the customer base to reach more than 5 million customers by 2035, of which 1 million with long-term contracts (PPA Mass Market).

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Contacts:
Giuseppe Mariano
Media Relations, Social Networking and Web Manager

Silvia Merlo - Silvia Onni
Press Office
ufficiostampa@a2a.it
Tel. [+39] 02 7720.4583

Marco Porro
Investor Relations Manager
ir@a2a.it Tel. [+39] 02 7720.3974

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