A2a S.p.a. · MIL:A2A
A2a — Debt Investor Presentation (January 2025)
36 slides from A2a's debt investor presentation, Jan 23, 2025
Slide 1: Presentation
Presentation 23 January 2025
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE These materials have been prepared by and are the sole responsibility of A2A S.p.A. (the “Company”) and have not been verified, approved or endorsed by any lead manager, bookrunner or underwriter retained by the Company. These materials are provided for information purpos
Slide 3: Table of contents
Table of contents 01 Group overview 4 02 ESG and Sustainable Finance 13 03 Financial highlights 19 04 Transaction overview 23 05 Taxonomy aligned activities 25 06 Appendix 33
Slide 4: Group overview
Group overview 4
Slide 5: A2A Life Company at a glance
A2A Life Company at a glance Energy Smart Waste Generation Market Infrastructures Flexible generation Electricity & gas Electricity distribution Collection mainly CCGT sales Gas distribution Integrated Water Service Urban & Industrial 5 RES generation VAS and Energy District Heating Waste Treatment
Slide 6: Our footprint in Italy: granular presence in the entire energy value chain
Our footprint in Italy: granular presence in the entire energy value chain A multi-utility company with infrastructure and A2A Shareholding structure services across the country 25.0 Municipality of Brescia Municipality of Milan % 45.6 Other Municipalities Market 25.0 4.4 4.4 6 Institutional investo
Slide 7: A2A Strategic Pillars – CapEx Plan
A2A Strategic Pillars – CapEx Plan Energy Circular transition economy Electric Energy 22 €B networks recovery Renewable 16 16 66 Material energy CAPEX recovery 7 2024-35 Customers Water cycle 55 nt % M er cha Flexible energy District heating Strategic Plan 2024-2035 updated in November 2024
Slide 8: Energy transition to provide clean energy
Energy transition to provide clean energy We support ...with clean and ...for businesses electrification... low-cost energy... and customers 8 By investing in robust and We are committed to developing We offer innovative solutions to efficient networks, we support the new plants to produce energy at
Slide 9: Circular economy to enhance waste and production scraps management
Circular economy to enhance waste and production scraps management Leader in waste …we give new life to …reducing treatment business… resources… waste 9 We build new waste treatment We leverage latest We offer circular solutions to plants to bridge the national technologies to recover create new pro
Slide 10: Key Credit Highlights
Key Credit Highlights Sound liquidity Sustainable Solid Business Robust credit position and Stable cash flows Finance Profile metrics balanced debt commitment maturity profile 10 A diversified and Regulatory revenues on 100% of debt in ESG Thanks to (i) a 2024-2035 Access to liquidity integrated ind
Slide 11: Remarkable economic results achieved and ambition for further growth
Remarkable economic results achieved and ambition for further growth Selective capital allocation and risk-return optimisation Delivering solid and sustainable results Strategical Industrial transformation Aligned to growth trends A2A in the last three years, from a local multi-utility to a Life Com
Slide 12: Commitment to maintain current credit rating
Commitment to maintain current credit rating Management of credit metrics S&P Credit Report Highlights1 Hybrid bond issuance, accounted 50% equity by the rating agencies Standard & Poor’s lowered the FFO to debt downside threshold by a percentage point (24% vs. 25%) due to strategic change which wil
Slide 13: ESG and Sustainable Finance
ESG and Sustainable Finance 13
Slide 14: Our Strategic Plan contributes to Decarbonisation
Our Strategic Plan contributes to Decarbonisation Scope 1 and 2 Scope 3 Scope 4 Emission factor scope 1 and 2 | gCO2/kWh Target 2035 vs 2023 CO₂ emissions avoided 2024-35 7% 4% 226 -65% Material recovery E-mobility gCO2/kWh Upstream emissions from Target confirmed 7% energy carriers District heating
Slide 15: A2A's Pathway in Sustainable Finance
A2A’s Pathway in Sustainable Finance Highlights 2019-2025 ESG Debt and targets Inaugural Green Bond Announcing Inaugural Update of the Sustainable First Green Bond with Eligible Green European Green Bond Finance Framework Percentage of ESG Projects based on Green Financing First EuGB in the market T
Slide 16: EU Green Bond Standard: Rationale & Highlights from the Regulation
EU Green Bond Standard: Rationale & Highlights from the Regulation The EuGB Standard is part of the EU’s Sustainable Finance action plan published in 2018 What The EuGB Standard establishes the criteria to be met by the green bonds in order to get the “European Green Bond” label, applicable since 21
Slide 17: Factsheet and External review
Factsheet and External review PRE-ISSUANCE EXTERNAL REVIEW FACTSHEET: Alignment to the EU GBS by Sustainable Fitch • A2A submitted the Factsheet for pre-issuance Indicative Factsheet structure: review and obtained a positive opinion 1. General Information • The external review assessed and confirmed
Slide 18: Focus Section 3 and 4
Focus Section 3 and 4 SECTION 3 SECTION 4 Environmental strategy and rationale Allocation of funds Allocation split per Green Project STRATEGY AND RATIONALE Category1 | % OVERVIEW The proceeds will be fully allocated to activities that are This European Green Bond will support and strengthen the 5%
Slide 19: Financial highlights
Financial highlights 19
Slide 20: Financial highlights: key figures
Financial highlights: key figures FY 2023 (€M) 9M 2024 (€M) EBITDA Group Net Income EBITDA Group Net Income +473 (+32%) +447 (+33%) +288 (+68%) 1,971 +258 (+64%) 1,804 1,498 713 1,428 829 659 1,357 796 368 554 299 504 541 214 125 425 401 363 341 359 375 205 278 305 538 512 534 369 388 -33 -52 -66 -3
Slide 21: Proactive Financial Management
Proactive Financial Management Duration and Average Cost of Debt Debt maturity profile(2) €M 750 Cost of Duration debt(1) 500 ~6 2.7% 250 Years @ 9M 2024 0 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 >2035 Bonds Loans IFRS 16 21 Debt Structure Liquidity Position FY23 9M24 FY23 9M24 13% 16
Slide 22: Focus on Bond Redemption Profile
FINANCIALS Focus on Bond Redemption Profile Outstanding Senior Bonds Outstanding Amount (€M) Annual Coupon Issue Date(1) Maturity Date(2) Rating (S&P/Moody’s)(3) Euro Green Bond 2034 500 4.375% 03/02/2023 03/02/2034 BBB/Baa2 Euro Green Bond 2030 650 4.500% 19/09/2022 19/09/2030 BBB/Baa2 Euro Green B
Slide 23: Transaction overview
Transaction overview 23
Slide 24: Summary terms and conditions
Summary terms and conditions A2A S.p.A. - Inaugural European Green Bond EUR Benchmark 10yr Issuer: A2A S.p.A. (Ticker: AEMSPA) (Country: IT) Issuer Rating Baa2 (stable) / BBB (stable) (Moody’s / S&P): Expected Issue Rating Baa2 / BBB (Moody’s / S&P): Format: Senior Unsecured Notes, Reg. S, bearer fo
Slide 25: Taxonomy aligned activities
Taxonomy aligned activities 25
Slide 26: EU Taxonomy activity: 4.1 Electricity generation using solar photovoltaic technology
EU Taxonomy activity: 4.1 Electricity generation using solar photovoltaic technology Green Project Category: Renewable Energy 1 EU TAXONOMY ENVIRONMENTAL OBJECTIVE: CLIMATE Technical Screening Criteria (TSC) CHANGE MITIGATION Substantial Contribution Every project and existing plant in A2A’s portfol
Slide 27: EU Taxonomy activity: 4.3 Electricity generation from wind power
EU Taxonomy activity: 4.3 Electricity generation from wind power Green Project Category: Renewable Energy 1 EU TAXONOMY ENVIRONMENTAL OBJECTIVE: CLIMATE Technical Screening Criteria (TSC) CHANGE MITIGATION Substantial Contribution The wind power plants in A2A’s portfolio are contributing substantial
Slide 28: EU Taxonomy activity: 4.5 Electricity generation from hydropower
EU Taxonomy activity: 4.5 Electricity generation from hydropower Green Project Category: Renewable Energy 1 EU TAXONOMY ENVIRONMENTAL OBJECTIVE: CLIMATE Technical Screening Criteria (TSC) CHANGE MITIGATION Substantial Contribution All hydropower plants in A2A’s portfolio are contributing substantial
Slide 29: EU Taxonomy activity: 4.10 Storage of electricity
EU Taxonomy activity: 4.10 Storage of electricity Green Project Category: Renewable Energy 1 EU TAXONOMY ENVIRONMENTAL OBJECTIVE: CLIMATE Technical Screening Criteria (TSC) CHANGE MITIGATION Substantial Contribution A2A’s batteries enable to store electricity. The activity does not comprehend the st
Slide 30: EU Taxonomy activity: 4.9 Transmission and distribution of electricity
EU Taxonomy activity: 4.9 Transmission and distribution of electricity Green Project Category: Transmission and Distribution Networks 1 EU TAXONOMY ENVIRONMENTAL Technical Screening Criteria (TSC) OBJECTIVE: CLIMATE CHANGE MITIGATION Substantial Contribution A2A’s distribution network is an intercon
Slide 31: EU Taxonomy activity: 5.5 Collection and transport of non-hazardous waste
EU Taxonomy activity: 5.5 Collection and transport of non-hazardous waste in source segregated fractions Green Project Category: Pollution prevention and control 1 EU TAXONOMY ENVIRONMENTAL Technical Screening Criteria (TSC) OBJECTIVE: CLIMATE CHANGE MITIGATION Substantial Contribution All separatel
Slide 32: EU Taxonomy activity: 7.3 Installation, maintenance and repair of energy efficiency equipment
EU Taxonomy activity: 7.3 Installation, maintenance and repair of energy efficiency equipment Green Project Category: Energy Efficiency 1 EU TAXONOMY ENVIRONMENTAL Technical Screening Criteria (TSC) OBJECTIVE: CLIMATE CHANGE MITIGATION Substantial Contribution All the operational efficiency projects
Slide 33: Appendix
Appendix 33
Slide 34: From EBITDA to net income
€M 2023 EBITDA 1971 D&A (801) (2) Write-off Risk Provisions (151) (1) Associates and joint venture Net Financial Expenses (139) EBT 877 FY 2023 Taxes (221) FY 2023 results: from EBITDA to net income Net result from discontinued 3 operations Minorities (24) 2023 Net Ordinary Income 635 24 Special Ite
Slide 35: Financial highlights: income statement
Financial highlights: income statement €M FY 2023 9M 2024 ∆ vs ∆ % vs ∆ vs ∆ % vs FY22* FY23 9M‘23* 9M’24 FY22 FY22 9M’23 9M’23 Revenues 23,156 14,758 (8,398) (36%) Revenues 10,956 9,097 (1,859) (17%) (-) Opex (21,658) (12,787) 8,871 (41%) (-) Opex (9,599) (7,293) 2,306 (24%) EBITDA (reported) 1,498
Slide 36: Financial highlights: balance sheet
Financial highlights: balance sheet €M FY22* FY23 9M 2024 ∆ 9M’24 vs FY23 Tangible Assets 6,162 6,643 6,789 146 Intangible Assets 3,515 3,630 3,725 95 Shareholdings and Other Non-Current Financial Assets 82 83 87 4 Other Non-Current Assets/Liabilities (296) (188) (47) 141 Deferred Tax Assets and Lia