A2a S.p.a. · MIL:A2A
A2a — A2A Spa Ord — H1 2024 Earnings Presentation
27 slides from A2a's earnings presentation, Jul 30, 2024
Slide 1: A2A Life Company H1 2024 results
A2A Life Company H1 2024 results Milan, 30th July 2024
Slide 2: H1 2024 Highlights
H1 2024 Highlights + - Hydro contribution H1 Results Thermoelectric production 2 Market margins 2024 MSD Regulated revenues
Slide 3: H1 2024 main achievements
H1 2024 main achievements Main ESG KPIs Capex in electricity network +31% Scope 1&2 Emission 226 -41% Factor (gCO2/kWh) vs H1 2023 750 €M RES on electricity production * 61% 27% Inaugural Italy's largest rooftop photovoltaic in H1 2023 system installed in Fiera Milano Hybrid Green Bond New Electrici
Slide 4: H1 2024 Results: outstanding performance
H1 2024 Results: outstanding performance €M Revenues EBITDA Ordinary EBITDA 4 Net Financial Position Group Net Income Ordinary Group Net Income NFP/Ebitda** Net of 23€M Net of 11€M related to the effect related to the effects of the release of the of the settlement of higher tax values of the disput
Slide 5: H1 2024 Group Ebitda: growth driven by Energy and Regulated Networks
H1 2024 Group Ebitda: growth driven by Energy and Regulated Networks €M +83% +105% 0% +9% 5 7-682- (*) Restated values to include municipalities non divested by A2A Ciclo Idrico (in H1 2023 considered in accordance with IFRS5)
Slide 6: Generation & Trading: strong RES contribution
Generation & Trading: strong RES contribution Ebitda €M Hydro, Wind & Solar production (GWh) 6 Thermal Production (GWh) • RES: higher hydro production and positive hedging strategy lead to higher margins • Flexibility: lower CCGT production partially offset by capacity market margin • Lower MSD, in
Slide 7: Market: solid margins
Market: solid margins Ebitda €M Customer Base Mass Market (#/000) Electricity Sales (TWh) 7 7 Gas Sales (Bcm) • Customer base evolution due to significant switchover from regulated market to free mass market • Solid unitary retail margin • Positive comparison vs H1'23 impacted by mismatches between
Slide 8: Waste: sound industrial performance offset negative energy scenario
Waste: sound industrial performance offset negative energy scenario Ebitda €M Electricity Energy Sales (GWh) Waste disposal (kton) Energy recovery 8 Material recovery Collection: higher operating costs partially offset by higher revenues from sorted collection and from new municipalities served Trea
Slide 9: Smart Infrastructures: higher regulated revenues
Smart Infrastructures: higher regulated revenues WACC RAB EE (€M) RAB GAS (€M) Ebitda €M 5.2% 6.0% 5.6% 6.5% RAB WATER CYCLE (€M) 9 5.8% 7.1% Heat Volumes (GWht) Regulated Networks: higher RAB and return District heating: positive extraordinary effects in 2023 (contribution from “Superbonus” and Aiu
Slide 10: H1 2024 results: from Ebitda to net income
H1 2024 results: from Ebitda to net income €M 10 H1 2023* 2022 (*) (*) 882 1,498 -381 -722 -52-2 1 -92 -69 2 0-90 381594 -114 -174 73 -47-13 257 380 21 23 280 401 (*) Restated values to include municipalities non divested by A2A Ciclo Idrico (in H1 2023 considered in accordance with IFRS5)
Slide 11: H1 2024 results: CapEx
H1 2024 results: CapEx €M Breakdown by Activity Breakdown by BU 11 Breakdown by Circular Breakdown by SDGs Breakdown by EU Taxonomy Economy & Energy Transition 22% 28% 28% SDGs Eligible Energy Transition Other Capex Non-eligible Circular Economy 78% 72% 72%
Slide 12: H1 2024 results: Net Free Cash Flow
H1 2024 results: Net Free Cash Flow €M NFP 31.12.2023 4,683 €M • (+) Reduced seasonality impact • (-) Lower gas sourcing for thermal production NFP 30.06.2024 • (-) Less OTC transactions for commodity sourcing 4,019 €M 12 (*) Change in Working Capital includes also other Assets and Liabilities and U
Slide 13: 2024 Guidance Improved
2024 Guidance Improved Ebitda 2,180- 2,220 €M 13 Net Ordinary Income* 700 - 720 €M *Excluding non-recurring items
Slide 14: H1 2024: key takeaways
H1 2024: key takeaways Further FY guidance upgrade CapEx deployment Effective financial Inaugural green hybrid driven by H1 strong performance in in line management bond to strengthen the RES generation and Market BU with Strategic Plan targets and optimization of commitment to maintain 14 cost of d
Slide 15: Q&A
Q&A 15
Slide 16: Annexes
Annexes on Sas! a2za
Slide 17: Business Units Ebitda breakdown
Business Units Ebitda breakdown €M H1 2024 H1 2023* Change Reported Ordinary Reported Ordinary Reported Ordinary A2A 1,279 1,269 882 870 397 45% 399 46% Generation & Trading 556 552 307 302 249 81% 250 83% RES 395 394 103 100 292 n.s. 294 n.s. Flexibility 148 144 155 153 -7 -5% -9 -6% Trading Portfo
Slide 18: H1 2024 VS H1 2023: profit & loss
H1 2024 VS H1 2023: profit & loss €M Delta Delta % H1 2023 Restated* H1 2024 vs 2023 vs 2023 Revenues 7,992 6,091 -1,901 -24% Operating costs -6,709 -4,370 2,339 -35% Staff costs -401 -442 -41 10% EBITDA 882 1,279 397 45% D&A -381 -439 -58 15% Write-off 0 -2 -2 n.s. Provisions -52 -73 -21 40% 18 ORD
Slide 19: H1 2024 VS FY 2023: balance sheet
H1 2024 VS FY 2023: balance sheet €M ∆ vs FY 2023 H1 2024 FY 2023 Tangible Assets 6,643 6,723 80 Intangible Assets 3,630 3,683 53 Shareholdings and Other Non Current Financial Assets 83 83 0 Other Non Current Assets/Liabilities -188 7 195 Deferred Tax Assets and Liabilities 464 469 5 Provisions for
Slide 20: Energy scenario
Energy scenario UoM H1 2023 H1 2024 Δ% vs 2023 Brent $/bbl 80 83 4% CO2 – EU ETS cost €/Tonn 89 66 -27% €/$ €/$ 1 1 0% Brent € €/bbl 74 77 4% PSV(1) €/MWh 47 31 -34% Coal € (API2) €/Tonn 126 101 -20% PUN Baseload(2) €/MWh 136 93 -31% PUN Peak(2) €/MWh 146 99 -32% 20 PUN Off-Peak(2) €/MWh 131 90 -31%
Slide 21: Energy scenario
Energy scenario UoM H1 2023 H1 2024 Δ% vs 2023 Brent $/bbl 80 83 4% CO2 – EU ETS cost €/Tonn 89 66 -27% €/$ €/$ 1 1 0% Brent € €/bbl 74 77 4% PSV(1) €/MWh 47 31 -34% Coal € (API2) €/Tonn 126 101 -20% PUN Baseload(2) €/MWh 136 93 -31% PUN Peak(2) €/MWh 146 99 -32% 21 PUN Off-Peak(2) €/MWh 131 90 -31%
Slide 22: Volumes
Volumes UoM H1 2023 H1 2024 Δ vs 2023 Δ% vs 2023 A2A Group Thermal production GWh 4,990 2,012 -2,978 -60% - CCGT production GWh 3,604 1,971 -1,633 -45% - Coal production GWh 312 0 -312 -100% - Oil production GWh 1,073 40 -1,032 -96% A2A Group Renewable production GWh 1,811 3,174 1,363 75% - Hydro pr
Slide 23: Financials as of 30 June 2024
Financials as of 30 June 2024 Sound financial structure Duration and Average Cost of debt FY23 H124 Cost of Duration debt(1) 13% 13% ~6 2,7% Years @H1 2024 87% 87% Fix Float 23 Liquidity Position remains solid Strong commitment to current credit rating FY23 H124 1,930 2,360 3,559 4,253 Agency Rating
Slide 24: Redemptions profile H1 2024
Redemptions profile H1 2024 IFRS 16 Bonds Long Term Loans Short Term Loans for extra liquidity* 714 711 676 23 8 588 6 552 16 528 524 24 480** 7 465 6 4 398 10 31 495 598 20 646 497 300 497 396 495 493 189 298 88 39 27 54 2 3 20 175 4 135 1 0 76 94 79 76 74 57 0 81 48 27 27 23 4 2 2024 2025 2026 202
Slide 25: Sustainable Finance Highlights
Sustainable Finance Highlights Conventional vs ESG Debt as of 30 June 2024 | % ESG Debt evolution and Targets 120% +11% vs. H1 2023 17% 100% 80% 77% 60% 23% 23% 100% 40% >90% 70% 77% >80% 60% 58% 20% 44% 28% 0% Conventional Debt ESG Debt Green Bond SLB Green Loan Financial FY 2020 FY 2021 FY 2022 FY
Slide 26: Sustainable Finance Framework update
Sustainable Finance Framework update Second Party The Sustainable Finance Framework, aligned with ICMA and LMA principles, represents the set of guidelines that strengthen the Opinion integration between the financial strategy and the sustainability strategy of the Group. provided by S&P The update
Slide 27: Contacts
Contacts A2A Investor Relations Team E-mail: ir@a2a.it 27 Phone: +39 02 7720 3974 https://www.gruppoa2a.it/en/investors