Acea S.p.a. · MIL:ACE
Acea — Investor Presentation (January 2025)
91 slides from Acea's investor presentation, January 2025
Slide 1: Investor Presentation January 2025
Investor Presentation JANUARY 2025 People for sustainable 0 infrastructure
Slide 2: Agenda
Agenda Acea: Infrastructural operator with low leverage 9M 2024 Results 2023 Results Evolving context 28: Green Diligent Growth Targets 2028 2023-28 Projections Closing remarks People for sustainable 1 infrastructure
Slide 3: Acea: Infrastructural operator with low leverage
Acea: Infrastructural operator with low leverage People for sustainable 2 infrastructure
Slide 4: Acea: Infrastructural operator with low leverage
Acea: Infrastructural operator with low leverage Key numbers, 2023 Regulated EBITDA1, % of total Not regulated Regulated WATER 10 Mln people served in Italy (20mln including foreign countries) ELECTRICITY 1.7 Mln PODs in Rome, the largest city grid in Europe (over 32,000 km) 97% 87% 1.5 Mln customer
Slide 5: 9M 2024 Results
9M 2024 Results 4
Slide 6: 9M 2024 Highlights
9M 2024 Highlights G R O W I N G R E S U LT S , F U RT H E R I M P R O V I N G C O M P A R E D T O H 1 2 0 2 4 Group revenues of €3.1bn, of which approximately €1.9bn related to regulated businesses, Revenues +7% vs. 2023 up by approximately 7% compared to 2023, mainly due to the investments carried
Slide 7: Overview of 9M 2024 Results
Overview of 9M 2024 Results ECONOMIC AND FINANCIAL SOLIDITY EBITDA, €m CAPEX, €m Non-recurring events and changes in scope Grant-funded REVENUES1 3,380 3,107 Focus on regulated businesses, 952 which account for approximately 86% 1,161 783 1,006 50 123 of the Group’s EBITDA and 90% of 31 0 +123 +96 c
Slide 8: 2024 Guidance
2024 Guidance U P WA R D R E V I S I O N Previous 2024 New 2024 Guidance Guidance +3%/5% +7%/+9% MAIN DRIVERS: E B I T DA vs 2023 vs 2023 ➢ Higher margins and tariffs in the water sector N F P / E B I T DA ~3.5x ~3.4x ➢ Operational efficiencies Capex: Gross 1.5 bn€ CONFIRMED Net of subsidies 1.1
Slide 9: 9M 2024 EBITDA
9M 2024 EBITDA G R O W T H D R I V E N B Y O R G A N I C D E V E L O P M E N T O F R E G U L AT E D B U S I N E S S E S EBITDA, €m 6 1,161 55 31 124 327 618 WATER GRIDS AND PUBLIC ENVIRONMENT PRODUCTION COMMERCIAL OTHER 9M 2024 EBITDA ITALY LIGHTING BUSINESSES2 53% 28% 5% 3% 11% 0% (86%1) +12% 1,130
Slide 10: 9M 2024 Net Profit
9M 2024 Net Profit O P E R AT I O N A L M A N A G E M E N T D R I V E S T H E I N C R E A S E I N N E T P R O F I T NET PROFIT, €m +31% 285 274 11 2 63 209 209 0 9M 2023 Change in scope 9M 2023 Operational Financial 9M 2024 Change in scope and 9M 2024 Net profit and non-recurring recurring managemen
Slide 11: Capex 9M 2024
Capex 9M 2024 T H E I N V E S T M E N T P L A N C O N T I N U E S , W I T H F O C U S O N R E G U L AT E D B U S I N E S S E S CAPEX 1 , €m 952 16 48 19 76 224 569 60% 23% 8% 2% 5% 2% (91%3) WATER GRIDS AND PUBLIC ENVIRONMENT PRODUCTION COMMERCIAL OTHER BUSINESSES2 CAPEX 9M 2024 ITALY LIGHTING • REC
Slide 12: Cash Flow 9M 2024
Cash Flow 9M 2024 P E R F O R M A N C E I N L I N E W I T H O U R E X P E C TAT I O N S , I M P R O V I N G V S 9 M 2 0 2 3 CASH FLOW, €m 9M 2024 Operating CF (-16€m) reflects the absorption of working capital mainly due to the regulatory items. 1,161 (134) 814 (829) (100) (113) (16) (100) (61) (187
Slide 13: 9M 2024 Financial structure
9M 2024 Financial structure L E V E R A G E S L I G H T LY I M P R O V I N G , A V E R A G E C O S T O F D E B T A R O U N D 2 % NFP FY 2023-9M 2024 €m Leverage DEC 23 9M 2024 ∆9M 24vs DEC 23 N E T D E B T / E B I T DA N E T D E B T / E B I T DA LT M 3 0 / 0 9 / 2 0 2 4 31/12/2023 NFP 4,847 5,232 38
Slide 14: Sustainability rating (updated as at September 2024)
Sustainability rating (updated as at September 2024) 64/100 "EE+" "A-" "A" 55/100 Leadership 81,58/100 15,4 "Leader ESG B- ESG risk rating Identity" (status PRIME) 13
Slide 15: 2023 Results
2023 Results 14
Slide 16: 2023 Highlights: The Turning Point
2023 Highlights: “The Turning Point” EBITDA: +7% EBITDA of 1.4 bn€, +86 mln€ vs. 2022 thanks to growth in regulated business2, vs. 2022 (+11% Water Italy and +7% Networks and Public Lighting) EBITDA Margin of 30% (+5 p.p. vs.2022) Net Profit: +5% Net Profit of 294 mln€ (+5% vs.2022) thanks to EBITDA
Slide 17: 2023 Results: Improving figures thanks to regulated businesses and efficiency
2023 Results: Improving figures thanks to regulated businesses and efficiency EBITDA, mln€ Net Profit, mln€ Non-recurring events and changes in perimeter Non-recurring events and changes in perimeter 1,305 1,391 294 +87 280 +49 45 44 14 (+7%) 49 (+22%) 1,260 1,347 231 280 2022 2023 2022 2023 Regulat
Slide 18: 2023 Results: Growing Capex in regulated businesses
2023 Results: Growing Capex in regulated businesses CAPEX, mln€ NFP, mln€ 1,143 4,847 1,050 +93 4,440 +407 (+9%) (+9%) 2022 2023 2022 2023 Regulated 88% 88% NFP/EBITDA 3.40x 3.49x Capex1 1. Includes, in addition to the regulated businesses Water Italy and Grids, the businesses Public Lighting and En
Slide 19: 2023 Results: Improving cash flow
2023 Results: Improving cash flow Cash flow, mln€ ∆ FY2023 VS FY2022 EBITDA 1.391 86 Delta WC1 (97) (10) Delta Funds and Other2 (153) 45 Net Capex (993) 8 Operating CF 148 A 129 A Operating CF: positive 148 mln€ (+129 mln€ vs. Finance income/ 2022) shows the ability to cover the investments for (exp
Slide 20: 2023 Results: Key milestones
2023 Results: Key ‘‘milestones’’ WATER • Major works: launched Peschiera Aqueduct People ESG (confirmed 700 mln€) and PNRR (invested 450+ mln€) • SII1 tenders: launched participation in other Italian • Top employer ‘23 • SBTi targets regions (e.g., Syracuse) confirmed • International: renegotiation
Slide 21: 2023 Results: Overdelivery
2023 Results: ‘‘Overdelivery’’ 2023 Guidance 2023 Results Capex 1.0 bn€ 1.1 bn€ Strong improvement in EBITDA and NFP/ EBITDA EBITDA +2 / 4% +7% NFP/ EBITDA < 3.8x 3.49x 20
Slide 22: Evolving context
Evolving context People for sustainable 21 infrastructure
Slide 23: Volatile macroeconomic context, new regulatory scenario for Water and Grids
Volatile macroeconomic context, new regulatory scenario for Water and Grids Inflation1, % NSP2, €/MWh 200 12 9 150 6 100 3 0 50 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Interest rates3, % Regulatory scenario Mid-Swap 8y Euribor 6m Areas Indicators 2022 2023
Slide 24: Europe: significant green investments planned
Europe: significant green investments planned… ... particularly in Acea's businesses Projected investments until 2030 WATER Infrastructure 600 bn€ 4% ELECTRICITY Grids resilience 400 bn€ of European GDP per year in green investments by 2030 ENVIRONMENT Circular Economy 200 bn€ 23 Source: ECCO Climat
Slide 25: The delivery of investments requires understanding of a rapidly evolving context
1 “Trilemma” of the energy transition The delivery of investments requires a deep understanding of a rapidly evolving context 3 2 Availability of Skills and New natural and Technologies financial resources 24
Slide 26: Trilemma of the energy transition
1 "Trilemma" of the energy transition: Need for operators to ensure availability and quality of resources while meeting sustainability criteria Perimeter Europe, in 2030 ENVIRON- WATER ELECTRICITY MENT ~70% ~450 GW +330 Availability southern European green capacity to be potential additional WtE pop
Slide 27: Capabilities and New Technologies
2 Capabilities and New Technologies New technologies affect asset management, workforce, and customer relations New Engineering and delivery capabilities (gap of ~500k technicians1 in Europe by 2028) required by STEM capabilities (Science, Technology, Engineering, Mathematics) the labor market End-t
Slide 28: Availability of natural and financial resources
3 Availability of natural and financial resources Scarcity and increase in the costs of production factors Natural Scarcity of primary natural resources such as Resources water and natural gas Supply chain Strong supply chain disruptions and implications for pricing and availability of key items for
Slide 29: Italy: need for significant investments and technological development
Italy: need for significant investments and technological development Water Electricity Environment Aging water networks Under-investment in the grid Infrastructural gap in Central- (60% network: 30+ year old; 25%: vs. European peers Southern Italy 50+ year old) (Netherlands/Germany at 3/4x vs. (Nor
Slide 30: Regulation: toward output based models and Totex efficiency targets
Regulation: toward output based models and Totex efficiency targets From… …to Opportunities Capex • Price-cap-type efficiency Opportunities for operators • Rate of return incentives on Opex from 2024 which achieve: approach: tariff recognition of actual Capex Electri- (basic ROSS1) and expected also
Slide 31: Green Diligent Growth
28 Green Diligent Growth People for sustainable 30 infrastructure
Slide 32: Green Diligent Growth: Mission
Green Diligent Growth: Mission “Developing and managing safe and sustainable infrastructures. With our people, ensuring access and circularity to critical resources for Citizens, Businesses, and Communities” People for sustainable 31 infrastructure
Slide 33: Green Diligent Growth: Strategy
28 Green Diligent Growth: Strategy Focus on regulated infrastructure businesses by strengthening positioning and expanding into adjacent Green segments ESG across businesses People at the center Diligent Operation excellence with strong cost and investment discipline to sustain cash generation Optim
Slide 34: Green Diligent Growth: Targets
28 Green Diligent Growth: Targets From (2020-2023)…… to (2028) % regulated Focus on regulated 87% 90% Green EBITDA1 infrastructures ESG linked Capex (yearly) 0.4 bn€ 1.0 bn€ ESG across businesses EBITDA margin 30% 43% Operational excellence Diligent Optimization of financial NFP/ EBITDA 3.5x 3.1x st
Slide 35: Green Diligent Growth: Operational framework
28 Green Diligent Growth: Operational framework eignneeeriraing IEnngg Water Electricity People ESG Systems Environment Processes GPern oedru oen azcitoin 34
Slide 36: WATER: 1st operator in Italy and leader in Europe
28 WATER: 1st operator in Italy and leader in Europe 20 mln clients served… …with innovative skills… 10 10 IP 100% Acea “Waidy - Water Management System”: platform for # Customers < Cloud native network analysis, monitoring and intervention planning mln mln Data driven Peru “Workforce Management Sys
Slide 37: WATER: Our vision
28 WATER: Our vision Water net zero • Ensuring the availability of the resource International • Monitoring/increasing the quality of the resource diversified operator Weight on EBITDA ‘28 Local approach and leadership in innovation • Aspiring to be the: 57% − Go-to operator at local level, ensuring
Slide 38: WATER: Our strategy
28 WATER: Our strategy Strengthening Increasing water systems’ resilience Optimizing and innovating network management SERVICE LEVEL INCREASE IN ITALY Developing collection and potabilization processes Simplifying the Water’s corporate structure to promote higher operational efficiencies (via a new
Slide 39: WATER: Main lines of intervention
28 WATER: Main lines of intervention • Implementation of strategic infrastructure works – Peschiera and large aqueducts Increase in water system • Implementation of aqueduct interconnection systems within and between areas resilience • Engineering of a vulnerability model for climate risk assessment
Slide 40: WATER: Project examples
28 WATER: Project examples Major works Purification/sludge treatment NEW PESCHIERA ALTO DN4000 Tunnels Circular sludge Securing Rome's water management DN7500 Tunnel supply Securing sources area Centralization of sewage Salisano By-pass treatment plants Laboratory/reuse Water Management Fregene: reu
Slide 41: WATER: Major works examples
28 WATER: Major works examples Intervention Description KPIs Peschiera Construction of an upper section second line with high anti- • Length: ~25 km Aqueduct seismic standards and possibility of maintenance without • Population served: >2 mln flow discontinuity (~10 m3/sec) • Investment: ~0.7 bn€ du
Slide 42: WATER: Partnership examples in agriculture
28 WATER: Partnership examples in agriculture Bonifiche Ferraresi example • Identify new technologies, including artificial intelligence, to improve water use in Optimizing water use agriculture A in agriculture • Focus on sustainable irrigation practices based on EU, national and regional regulatio
Slide 43: WATER Italy: 2023-28 Projections
28 WATER Italy: 2023-28 Projections xx% CAGR ‘23-'28 Revenues1, mln€ Capex2, mln€ 4,700 4% 6% 1,800 930 1,494 682 2023 2028P 2023 2028P CUM. 2024-28P EBITDA, mln€ RAB3, bn€ 7% 8% 1,020 6.9 744 4.6 2023 2028P 2023 2028P 1. Includes the synthethic result of non-financial participation consolidated by
Slide 44: ELECTRICITY: Infrastructural operator active in three areas
28 ELECTRICITY: Infrastructural operator active in three areas 1. Grids (Rome) 2. Public Lighting (Rome and Terni) 2nd Italian distributor for POD Italy’s largest city grid (Rome) 1.7 mln PODs in Rome 250,000 light points Managed with innovative solutions 5,000 installations Rome Flex: distributed f
Slide 45: ELECTRICITY: Our vision
28 ELETRICITY: Our vision 2nd operator in Service quality Italy • Ensuring an orderly energy transition aiming at a significant focused on grid strengthening and modernization of the grid management • Promoting the decentralization and smartization of the grid also via Artificial Intelligence and in
Slide 46: ELECTRICITY: Our strategy
28 ELECTRICITY: Our strategy Strengthening Networks/ Public Lighting: "Rome ready for 2030" by: Upgrading Rome’s LV grid (increase resilience, available power and hosting capacity of 800MW) Modernizing the MV/LV grid to increase safety INCREASE IN SERVICE (advanced diagnostics, remote control and au
Slide 47: ELECTRICITY: Rome ready for 2030, major investments
28 ELECTRICITY: "Rome ready for 2030", major investments Rome LV network • Increased power available to customers • LV network reinforcement - 230 V vs. 400 V grid transformation for 70k POD (PNRR upgrading scope) • Hosting Capacity increase of 800 MW (PNRR Scope) • Maximizing telecontrol and automa
Slide 48: ELECTRICITY: Project examples (1/2)
28 ELECTRICITY: Project examples (1/2) Grids Artistic lighting Telecontrol Piazza della Repubblica Resilience Domus Tiberiana 2G meter installation Innovation Romeflex Drones: grid Inspection 47
Slide 49: ELECTRICITY: Project examples (2/2)
28 ELECTRICITY: Project examples (2/2) Illustrative Remote control granular on all light points Smart sensors for adoptive public lighting Surveillance cameras for video-streaming and video analysis Video-mapping for promotional and awareness campaigns Environmental sensors aimed at measuring pollut
Slide 50: ELECTRICITY: Growth in performance and service level of commercial business
28 ELECTRICITY: Growth in performance and service level of commercial business • Increased commercial push to support a full transition of AceaEnergia Performance towards the free market growth in • Profound business transformation with channel remix and strong push on pull Retail market and partner
Slide 51: ELECTRICITY: 2023-28 Projections
28 ELECTRICITY: 2023-28 Projections xx% CAGR '23-'28 Revenues, mln€ Capex1, mln€ 2,035 -4% 4% 3,111 435 2,535 350 2023 2028P 2023 2028 CUM. 2024-28P EBITDA, mln€ RAB2, bn€ 2% 6% 504 550 3.7 2.8 2023 2028P 2023 2028P 1. Gross of government contributions (e.g., PNRR) | 2. Represented the value of RAB
Slide 52: ENVIRONMENT: 5th operator in Italy
28 ENVIRONMENT: 5 operator in Italy th Presence in segments with high margins... …in 8 regions… 25 1.8 25% Valle d’Aosta Lombardy Tuscany Marche Facilities Mton of EBITDA waste Margin Veneto Lazio Umbria Abruzzo managed … and along the entire waste chain Midstream (Waste treatment) Pre- Collection p
Slide 53: ENVIRONMENT: Our vision
28 ENVIRONMENT: Our vision Increased coverage of the entire waste cycle Operator of • Maximizing circularity focusing on the re-use of resources increasing • Designing and managing new plants end-to-end with the national highest industry standards relevance Weight on EBITDA ‘28 Simplification and sy
Slide 54: ENVIRONMENT: Our strategy
28 ENVIRONMENT: Our strategy Strengthening Simplifying the corporate structure in 5 treatment activities (Waste-to-Energy, Composting, Landfills and TMB, Plastic Sorting and Recycling, and Industrial Waste) Expanding and revamping the existing plants REORGANIZATION OF (WtE, other plants) WASTE TREAT
Slide 55: ENVIRONMENT: Project examples
28 ENVIRONMENT: Project examples WtE – Energy recovery Recycling – Material recovery Expansion of Waste-to-Energy activities (~200 kton) Consolidation of the plastics supply chain (~170 kton) San Vittore: IV line construction + II line revamping JV with chemical partner to ensure plant output produc
Slide 56: ENVIRONMENT: New ancillary plants example (WtE)
28 ENVIRONMENT: New ancillary plants example (WtE) Illustrative Ancillary plants Carbon Heavy ash District Photovoltaic WtE Recovery Capture heating Plant Moving grate Experimental plants Heavy ash Construction of a Photovoltaic plant, incineration for CO2 capture recovery plant district heating aim
Slide 57: ENVIRONMENT: 2023-28 Projections
28 ENVIRONMENT: 2023-28 Projections xx% CAGR ‘23-'28 Revenues1, mln€ Capex2, mln€ Recurring Capex ~0% 5% 475 430 39 35 334 7 3 325 32 28 150 2023 2028P 2023 2028P CUM. 2024-28P EBITDA, mln€ Operational KPIs Energy produced by WtE3, GWh/year Waste treated Mton/year +10% +4% 13% 155 2.2 440 1.8 84 278
Slide 58: ENGINEERING: 1st operator in Acea's core sectors
28 ENGINEERING: 1 operator in Acea’s "core sectors" st Highly specialized center of excellence… … with strong internal R&D... 400+ 3 116 National leadership in the water sector in mln€ testing methods and advanced instruments for laboratory analysis Engineers Companies1 Revenues … and focus on desig
Slide 59: ENGINEERING: Our vision
28 ENGINEERING: Our vision Internal competences and partnerships • Growing internal competencies in advanced technologies/engineering Center of • Strategic partnerships with industry leaders for know-how development excellence in Engineering Internal support and services • Maximizing the control on
Slide 60: ENGINEERING: Our strategy
28 ENGINEERING: Our strategy Strengthening Acea Infrastructure: integrating different companies in a unique center of excellence to manage major works: SINGLE CENTER OF • Water: Peschiera (130 km), PNRR projects EXCELLENCE WITH FOCUS ON MAJOR • Environment: revamping current plants and new WtE PROJE
Slide 61: PRODUCTION: Highly specialized operator
28 PRODUCTION: Highly specialized operator Good mix of renewables… … to cover internal consumption... Current capacity1, % Hydroelectric 37% 30% Internal Photovoltaic 30% consumption coverage (current) Thermoelectric 33% ... and with a strong PV pipeline, MW 870 1,200 110 120 100 330 Thermal Photovo
Slide 62: PRODUCTION: Our vision
28 PRODUCTION: Our vision Carbon neutrality • Reducing CO2 emissions to meet SBTi targets Operator highly focused on renewables Energy Balance • Achieving full balance of Group energy production/ consumption 61
Slide 63: PRODUCTION: Our strategy
28 PRODUCTION: Our strategy Strengthening Deploying the existing solar pipeline also leveraging on financial DEVELOPMENT AND partners MANAGEMENT OF PV (870 MW, of which 210 already authorized) PLANTS Development1 Implementing self-consumption solutions: installation (for the Group/third parties) of
Slide 64: PRODUCTION: Launched projects
28 PRODUCTION: Launched projects Pipeline as of 31.12.2023 Geographical distribution MW Number of plants of which ~210 MW 10-100 MW already authorized 1-10 MW 1 870 57 Number of plants, of which 1 19 have already been authorized 300 270 10 1 2 250 18 50 17 2024 25 26 27 Total Facilities prepared to
Slide 65: ESG across corporate businesses
28 ESG: Our Vision E SBTi targets of emission reduction in 2032 (Scope 1, 2, 3) Focus on "green" funding Strengthening policy on biodiversity Strengthening commitment on people development ESG across S Introduction of social impact assessment on welfare corporate initiatives businesses F
Slide 66: ESG: SBTi targets 2032
28 ESG: SBTi targets 2032 1 Scope SBTi targets 2032 Enabling levers Confirmed SBTi commitment Scope 1 -56%2 emission intensity reduction (tCO2/MWh) for CO2 emissions reduction to be achieved also through: • Green energy generation and Scope 2 -32%3 absolute emissions reduction (tCO2) management/ dev
Slide 67: ESG: Investments related to sustainability targets 2024-28
28 ESG: Investments related to sustainability targets 2024-28 SDG Goals of the Plan Investments related to sustainability targets1, 2024-2028 SDGs related to Around 5.5 bn€2 of investments related to sustainability targets aligned with investment in SDGs during the plan period: business 1,210 mln€ w
Slide 68: Main strategy enablers
Main strategy enablers • New Carta della Persona e della Partecipazione • Introduction of new skills People • Strengthening of training and career paths People • Enhancement of corporate welfare • Focus on digitization, GenAI and robotics also to support service quality and on field safety Systems •
Slide 69: People: Main actions
28 People: Main actions 1. New Carta della Persona e Carta della Persona e della Partecipazione signed between Acea and labor della Partecipazione unions 2. Introduction of new skills Development of a structured talent management to ensure attraction and retention of the best skills, through: • Dedi
Slide 70: Systems: Main actions
28 Systems: Main actions Digitization Artificial Intelligence E2E process automation of Corporate/ Predictive maintenance through operating companies Smart Metering Data Governance strategy to develop IoT for plants and networks a Data Driven company Telecontrol Networks planning Workforce managemen
Slide 71: Systems: Partnership network development
28 Systems: Partnership network development Industrial partnership Financial partnerships WATER Focus on WATER Development of projects to support Medium-long term financing water resources security for the supply chain Incentive scheme for lower ELECTRICITY interest rates Co-development of photovolt
Slide 72: Processes: Main actions
28 Processes: Main actions 1. Business process Redesign of all major processes through data mining in favor of higher value-added redesign activities and better interaction between business units and functions, to improve operational management and service quality 2. Procurement review Strategic man
Slide 73: Processes: Operational efficiencies
28 Processes: Operational efficiencies Key levers Cash-cost with efficiency potential, bn€ Continuous cash-cost optimization through: Costs1 • Procurement optimization (supply unbundling, 1.0 Efficiencies Baseline planning and standardization, should-cost...) ~16% Efficiencies (0.2) • New technologi
Slide 74: Processes: Credit efficiencies
28 Processes: Credit efficiencies Key levers Clustering and Development of differentiated routing paths for dunning customer clusters via AI, enhancing dunning strategies Reduction of Implementation of interventions to improve meters’ Target of 160- inaccessible access 180 mln€ of customers extra-ca
Slide 75: Targets 2028
Targets 2028 People for sustainable infrastructures 74
Slide 76: Targets 2028: Steady growth
Targets 2028: ‘‘Steady growth’’ xx% CAGR '23-'28 EBITDA, mln€ Cumulated Capex2 2024-28P, bn€ 5% 1,630 1,800 6.9 7.6 1,391 0.7 2023 2026P 2028P Regulated Not regulated Total Regulated1 ~87% ~90% ~90% % of the Tot. ~91% ~9% 100% Net profit, mln€ RAB3, bn€ 5% 7% 9.6 10.5 350 375 294 7.4 2023 2026P 2028
Slide 77: Targets 2028: Returns by business
Targets 2028: Returns by business Invested Capital1, bn€ ROIC2, pre-tax From (2022-23) … A (2028) Acea 7.9% 8.4% Group Electricity Acea Water2 7% 9% Group ~9.5 Electricity3 8% 9% Environment Water Other Environment 10% 12% 1. Shareholders Equity + NFP | 2. The regulated WACC has been considered for
Slide 78: Targets 2028: More value to shareholders
Targets 2028: More value to shareholders DPS1, € Average annual TSR, % +4.0% p.a. ~6 >11 0.88 ~5 2023 2028P EPS CAGR Dividend Yield TSR Annual dividend growth = 4.0% Average annual return for shareholders Over 1 bn€ in dividends throughout the exceeding 11% business plan horizon 1. Expressed on an
Slide 79: Potential further strategic upside from asset rotation
Potential further strategic upside from asset rotation Asset disposal/ Selective allocation of proceeds to partnership core and regulated sectors New tenders and agreements in the management of the integrated water service, selective • Disposal of non-core assets growth abroad and in new segments ch
Slide 80: 2023-28 Projections
2023-28 Projections People for sustainable 79 infrastructure
Slide 81: Key assumptions of the Plan
Key assumptions of the Plan Inflation1, % Regulatory scenario 2.7% 2.1% 2.1% 2.0% 2.0% Areas Indicators 2024 2025-28 WATER Italy WACC 6.1% 6.1% 2024 2025 2026 2027 2028 Deflator 2.8% 0% GRIDS WACC 6.0% 5.7% Deflator 5.9% 1% NSP2, €/ MWh Interest rates3, % 103 105 108 108 110 Mid-Swap 8y Euribor 6m 2
Slide 82: Growth driven by regulated business
Growth driven by regulated business… xx% CAGR '23-'28 EBITDA, mln€ +5% 1,800 1,630 15 75 (18) 155 155 60 1,391 257 110 OTHER BU1 59 84 550 535 ENVIRONMENT 504 ELECTRICITY WATER Italy 925 1,020 744 2023 Regulated Not regulated 2026P Regulated Not regulated 2028P % Regulated2 ~ 87% ~ 90% ~ 90% 1. Othe
Slide 83: …and from investments in infrastructures
…and from investments in infrastructures… Cumulated capex1 2024-28P, bn€ RAB4, bn€ Areas 2023 2028P 7.6 0.4 0.5 WATER Italy 4.6 6.9 2.0 4.7 GRIDS 2.8 3.7 TOTAL 7.4 10.5 WATER ELECTRICITY ENVIRONMENT OTHER BU2 CUM. 24-28P Italy % Regulated3 ~91% 1. Gross of public contribution (e.g., PNRR) | 2. Inclu
Slide 84: …ensures value creation for shareholders
…ensures value creation for shareholders Net profit, (Δ 2023-28P) mln€ (215) 409 (73) (40) 375 294 2023 EBITDA Depreciation Financial Taxes 2028P and provisions management, participation, and other 83
Slide 85: Robust and improving financial structure (1/3)
Robust and improving financial structure (1/3) Operating Cash Flow (2024-28P), mln€ 8.2 ~0 (0.6) 7.6 (5.6) 2.0 EBITDA Delta WC Delta funds and other Operat. CF Capex Operating CF before Capex after Capex 1. Includes change in regulatory receivables (Grids accounting and Water adjustments) 84
Slide 86: Robust and improving financial structure (2/3)
Robust and improving financial structure (2/3) NFP, mln€ NFP/ EBITDA 5,595 5,570 3.5x 3.4x 4,847 3.1x 2023 2026P 2028P 2023 2026P 2028P 85
Slide 87: Robust and improving financial structure (3/3)
Robust and improving financial structure (3/3) Average duration of debt, years Key Optimization Levers 4.2 4.5 4.5 Increase of the average duration of debt through refinancing of expiring debt with: ‒ bond issues (~8 years bullet) and ‒ long-term financing (~15 years amortizing) 2023 2026P 2028P
Slide 88: Closing remarks
Closing remarks People for sustainable infrastructures 87
Slide 89: Closing remarks
28 Closing remarks Key numbers Focus on regulated infrastructure businesses by strengthening positioning and expanding into • EBITDA '28: ~1.8 bn€ Green adjacent segments (90% regulated1) ESG across businesses People at the center • Net Profit '28: ~375 mln€ Operation excellence with strong cost and
Slide 90: 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 91: Contacts
Contacts People for sustainable infrastructures Contacts Channels Email: investor.relations@aceaspa.it Phone: +39 06 57991 Website Dario Michi Investor Relator gruppo.acea.it Investor Relations Team Social Networks Daniela Bellucci Simonetta Gabrielli Armando Iobbi @aceagruppo - #aceagruppo 90