Slide 1: Results for the year ended 31 December 2023
Results for the year ended 31 December 2023 6 March 2024
Slide 2: Agenda
Challenging market environment Agenda FY2023 results Appendix 2
Slide 3: «Evolving» market environment
«Evolving» market environment FALLING PRICES AND DEFINITION OF NEW REGULATORY PERIOD PARAMETERS FOR WATER AND NETWORKS Regulation Commodity prices and inflation Interest rates • Release of MTI-4 (Resolution 639/2023) defining the integrated • Energy price (SNP) in 2023 falling to water service tarif
Slide 4: Agenda
Challenging Market Environment Agenda FY2023 results Appendix 4
Slide 5: FY2023 Highlights
FY2023 Highlights GROWTH IN EBITDA AND INVESTMENTS IN REGULATED BUSINESSES1 AND CONSTANT OPERATIONAL DISCIPLINE Regulated Revenue1 Group revenue equal to €4.6bn of which around €2.4bn related to Water Italy and Grids and +6% Public Lighting, and Environment business, up by +6% compared to 2022 vs 20
Slide 6: Overview of FY2023 results
Overview of FY2023 results ORGANIC GROWTH AND RELAUNCH OF INVESTMENTS EBITDA, €m CAPEX, €m Non-recurring events and change In scope Grant-funded Organic EBITDA growth mainly R E V E NU ES 1 5,138 4,649 driven by regulated businesses and 1,305 1,391 1,050 1,143 efficiency initiatives, offsetting the
Slide 7: EBITDA FY2023
EBITDA FY2023 IMPROVEMENT DRIVEN BY ORGANIC GROWTH OF REGULATED BUSINESSES EBITDA, €m 5 1,391 54 129 84 744 375 WATER GRIDS AND PUBLIC ENVIRONMENT PRODUCTION COMMERCIAL OTHER BUSINESSES2 FY2023 EBITDA ITALY LIGHTING 54% 27% 6% 4% 8% <1% (87 1 ) +7% 1,305 1,347 1,391 -26 1,260 44 -19 -31 118 EBITDA F
Slide 8: FY2023 Net Profit
FY2023 NET PROFIT OPERATING EFFICIENCIES AND ORGANIC GROWTH HAVE OFFSET INCREASES IN DEPRECIATION AND FINANCIAL COSTS Net profit, €m Non-recurring events and changes In scope 294 A FY 2022 non-recurring 280 14 Actions aimed at efficiency recovery events (€49m), primarily 49 and growth in the regulat
Slide 9: FY2023 Capex
FY2023 CAPEX INVESTMENT PLAN CONTINUES WITH FOCUS ON REGULATED BUSINESSES CAPEX, €m 50 31 39 41 300 1,1431 682 60% 26% 3% 4% 4% 3% (88 3 ) WATER GRIDS AND PUBLIC ENVIRONMENT PRODUCTION COMMERCIAL OTHER BUSINESSES2 FY2023 CAPEX ITALY LIGHTING • REPAIR AND • UPGRADE OF THE GRID • WORKS ON SAN • UPGRAD
Slide 10: FY2023 Cash Flow
FY2023 Cash Flow IMPROVEMENT IN FREE CASH FLOW CASH FLOW, €m FY2023 A A Positive operating CF of €148m, highlighting the capacity to meet the period’s investments thanks to the result of operational management, with an improvement of €129m compared to 2022. 1,391 7 (104) B Cash Flow before M&A and I
Slide 11: FY2023 Financial Structure
FY2023 Financial Structure LEVERAGE GUIDANCE CONFIRMED, AVERAGE COST OF DEBT 2% FY22-FY23 NFP, €m Leverage NET D EB T /EB I TDA NET D EB T /EB I TDA CONS CONS ∆ CONS DEC 23 31/12/2023 31/12/2022 DEC 22 DEC 23 vs DEC 22 3.49x 3.40x NFP 4,440 4,847 407 Rating Long-term debt 4,722 4,771 «BBB+» «B a a 2
Slide 12: Water Italy: organic EBITDA growth +10%
Water Italy1: organic EBITDA growth +10% VALUE CREATION THROUGH INVESTMENT Revenue, €m EBITDA main drivers, €m Non-recurring events and changes in scope +10% 704 744 669 641 40 28 63 1,348 1,473 34 101 +58 1,372 (+4%) 1,314 FY2022 FY2023 FY2022 CHANGE IN SCOPE FY2022 ORGANIC FY2023 CHANGE IN SCOPE F
Slide 13: Grids and Public Lighting: EBITDA growth +7%
Grids and Public Lighting: EBITDA growth +7% FOCUS ON RESILIENCE AND DIGITALISATION OF THE GRID Revenue, €m EBITDA, €m 2G ELECTRICITY METERS +7% Installed during FY2023 352 375 23 ~ 334K 606 628 +22 (+4%) FY2022 ORGANIC FY2023 EBITDA GROWTH EBITDA FY2022 FY2023 Total Electricity Distributed ( GWh) N
Slide 14: Environment: increase in treated waste +7%
Environment: increase in treated waste +7% ONGOING INTEGRATION OF PLANTS ACQUIRED IN CENTRAL ITALY Revenue, €m EBITDA main drivers, €m Non-recurring events and change in scope -22% 102 12 90 84 20 70 14 342 335 17 11 30 21 -20 325 305 (-6%) FY2022 CHANGE IN SCOPE Normalised ENERGY SCENARIO Normalise
Slide 15: Production: increase in electricity output +13%
Production: increase in electricity output +13% OVER 200MW OF PHOTOVOLTAIC PLANTS AUTHORISED (READY TO BUILD) Revenue, €m EBITDA main drivers, €m Non-recurring events and change in scope -24% 90 174 22 68 0 138 14 54 -30 174 144 (-17%) -6 -5 FY2022 ENERGY SCENARIO Normalised RAVAMPING/ FY2023 FY2022
Slide 16: Commercial: EBITDA growth +45%
Commercial: EBITDA growth +45% GROWTH IN FREE MARKET CUSTOMER BASE Revenue, €m EBITDA main drivers, €m Non-recurring event and change in scope +45% 3,160 129 1 90 89 40 2,483 1 -676 3,159 (-21%) FY2022 NON-RECURRING FY2022 EBITDA ENERGY SCENARIO FY2023 EBITDA COMPONENTS EXCLUDING EBITDA NON-RECURRIN
Slide 17: 2024 Guidance
2024 Guidance EBITDA: +3%/+5% vs 2023 Strong growth in EBITDA and investments Investments: €1.5 bn (€1.1 bn net of grants) NFP/EBITDA : ~3.5x 17
Slide 18: Agenda
Challenging market environment Agenda FY2023 results Appendix 18
Slide 19: Sustainability rating
Sustainability rating 64/100 "EE+" "A-" "A" Positive Outlook Leadership 81,58/100 "Leader 19,7 ESG ESG risk Identity" rating 19
Slide 20: Consolidated Income Statement and Balance Sheet as of 31/12/23
Consolidated Income Statement and Balance Sheet as of 31/12/23 CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED INCOME STATEMENT (€/000) (€/000) 2023 2022 Increase/(Decrease) 31 December 2023 31 December 2022 Increase/(Decrease) Property, plant and equipment 3,334,868 3,144,250 190,618 Sale
Slide 21: Water | Regulation
Water | REGULATION TARIFF REGIME FOR THE FOURTH REGULATORY PERIOD (MTI-4) 2024 – 2029 ARERA RESOLUTION: 639/2023 CONFIRMED THIRD REGULATORY PERIOD GENERAL OVERVIEW AND REVENUE CALCULATION METHODOLOGY (i.e. Guaranteed Revenue Constraint (VRG)). • Greater visibility: regulatory period of 6 years (2024
Slide 22: Grids | Regulation
Grids | REGULATION Areti’s concession expires in 2030 ARERA RESOLUTION 556/2023 – «Revision of rate of return on invested capital for infrastructure services in the electricity and gas sectors for the year 2024» • 2024 WACC electricity distribution: 6.0% ARERA RESOLUTION 497/2023 – «Application Crit
Slide 23: Grids | Regulation
Grids | REGULATION ARERA RESOLUTION 617/2023 – «Approval of output-based regulations and the commercial quality of electricity distribution and metering services, with effect from 1 January 2024» Incentives for the use of non-repayable funding • Bonus for the use of non-repayable funding by electric
Slide 24: Environment | Regulation
Environment | REGULATION ARERA RESOLUTION 363/2021 (MTR-2) – «Approva of the tariff regime for waste (MTR-2) for the second regulatory period 2022-2025» • The scope of application covers treatment plants used in the «recovery and disposal» of all urban waste, regardless of how it is subsequently cla
Slide 25: Disclaimer
DISCLAIMER THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT REFLECT THE COMPANY’S MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL AND OPERATIONAL PERFORMANCE OF THE COMPANY AND ITS SUBSIDIARIES. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON ACEA S.P.A.’S CURR
Slide 26: Results for the year ended 31 December 2023
Results for the year ended 31 December 2023 6 marzo 2024