Slide 1: A2A Life Company 9M 2024 results
A2A Life Company 9M 2024 results Milan, 12th November 2024
Slide 2: 9M 2024 Highlights
9M 2024 Highlights + - Hydro contribution 9M Results Thermoelectric production 2 Market margins 2024 MSD Regulated revenues
Slide 3: 9M 2024 main achievements
9M 2024 main achievements Main ESG KPIs Heat recovery from Rea Dalmine WtE plant in Bergamo -33% Scope 1&2 Emission Factor 243 (gCO2/kWh) vs 9M 2023 ESG Debt Signed PPAs from RES on electricity 55% 31% 77% producers for approximately production* in 9M 2023 New Green 160 MW Loan 3 dedicated Electrici
Slide 4: 9M 2024 Results: excellent performance
9M 2024 Results: excellent performance Key Financial Indicators (€M) Revenues EBITDA Ordinary EBITDA +447 (+33%) +438 (+32%) -1,859 (-17%) 1,804 1,788 10,956 1,357 1,350 9,097 4 9M 2023* 9M 2024 9M 2023* 9M 2024 9M 2023* 9M 2024 Group Net Income Ordinary Group Net Income Net Financial Position +288
Slide 5: 9M 2024 Group Ebitda: growth driven by Energy
9M 2024 Group Ebitda: growth driven by Energy €M +47% +447 (+33%) +438 (+32%) +75% 17 26 1,788 16 1,804 155 249 -9 389 1,357 1,350 5 +6% -7 292 363 362 275 207 783 534 +7% -29 -38 (*) Restated values to include municipalities non divested by A2A Ciclo Idrico (in 9M 2023 considered in accordance with
Slide 6: Generation & Trading: strong RES production
Generation & Trading: strong RES production Ebitda €M +255 (+47%) Hydro, Wind &Solar production (GWh) +249 (+47%) +1,799 (+58%) 4,879 3,080 4,219 2,478 283 337 319 323 6 Thermal Production (GWh) -2,948 (-42%) 7,001 1,183 312 • RES: higher hydro production and positive hedging strategy lead to 4,053
Slide 7: Market: customer base evolution
Market: customer base evolution Ebitda €M +158 (77%) Customer Base Mass Market (#/000) +155 (75%) +169 (+5%) 3,466 3,635 408 506 255 739 739 2,319 2,874 2.319 Total Electricity Sales (TWh) 7 7 +1.3 (+8%) 17.2 18.5 • Customer base evolution due to commercial expansion, switchover from regulated to fr
Slide 8: Waste: good industrial performance
Waste: good industrial performance Ebitda €M Electricity Energy Sales (GWh) +48 (+3%) +27 (+10%) 1,522 1,570 +17 (+6%) 8 Waste disposal (kton) Energy recovery 8 +117 (+8%) 1,477 1,594 8 Material recovery • Collection: higher operating costs partially offset by higher revenues +40 (+5%) from sorted c
Slide 9: Smart Infrastructures: higher regulated revenues
Smart Infrastructures: higher regulated revenues WACC Ebitda €M +19 (+5%) RAB EE (€M) RAB GAS (€M) +26 (+7%) +127 (+8%) +130 (+14%) 1,599 1,726 953 1,083 5.2% 6.0% 5,6% 5.6% 6.5% 5,2% 6.0% RAB Water Cycle (€M) +97 (+20%) 9 477 574 5,8% 5.8% 7.1% Heat Volumes (GWht) +116 (+6%) • Regulated Networks: h
Slide 10: 9M 2024 results: from Ebitda to net income
9M 2024 results: from Ebitda to net income €M 1,804 Release Hybrid bond interests of provision not included in P&L in Q3 2024 statement. Coupons Confirmation will reduce Equity of 29% tax rate Reserves directly -657 974 713 665 10 9M 2023(*) 1,357 -579 0 -93 0 -103 0 582 -169 3 -14 402 23 425 (*) Re
Slide 11: 9M 2024 results: CAPEX
9M 2024 results: CAPEX €M Breakdown by Activity Breakdown by BU +102 (+13%) +102 (+13%) 898 898 40 49 796 32 796 38 541 460 467 412 Corporate Smart Infrastructures 114 Mandatory 119 Waste 77 63 297 317 Development 198 Market 11 164 Maintenance Generation & Trading 9M 2023 9M 2024 9M 2023 9M 2024 Bre
Slide 12: 9M 2024 results: net free cash flow
9M 2024 results: net free cash flow €M NFP 31.12.2023 NFP 30.09.2024 4,683 €M 4,011 €M • (-) Less OTC transactions for commodity sourcing 2.4x 1.7x(2) • (-) Lower gas sourcing for thermal production • (+) Reduced seasonality impact 1,804 1,202 12 672 304 -5 Operating Operating Cash Flow Cash Flow (1
Slide 13: 2024 Guidance Improved
2024 Guidance Improved 2.28 – 2.32 €B 0.80 – 0.82 €B 13 EBITDA Net Ordinary Income* (*) Excluding non-recurring items
Slide 14: 9M 2024: key takeaways
9M 2024: key takeaways Further FY CapEx growth in new Effective financial guidance upgrade generation plants and management and optimization 14 driven by strong electricity networks of cost of debt performance in to enable energy Generation and Market BUs transition Results above Plan targets thanks
Slide 15: Q&A
Q&A 15
Slide 16: Annexes
Annexes 4%. Nas! a2a
Slide 17: Business Units Ebitda breakdown
Business Units Ebitda breakdown €M 9M 2024 9M 2023* Change Reported Ordinary Reported Ordinary Reported Ordinary A2A 1,804 1,788 1,357 1,350 447 33% 438 32% Generation & Trading 796 783 541 534 255 47% 249 47% RES 591 591 281 279 310 n.s. 312 n.s. Flexibility 205 192 260 255 -55 -21% -63 -25% Market
Slide 18: 9M 2024 VS 9M 2023: profit & loss
9M 2024 VS 9M 2023: profit & loss €M Delta Delta % 9M 2023 Restated* 9M 2024 vs 2023 vs 2023 Revenues 10,956 9,097 -1,859 -17% Operating costs -9,000 -6,641 2,359 -26% Staff costs -599 -652 -53 9% EBITDA 1,357 1,804 447 33% D&A -579 -657 -78 13% Write-off 0 -2 -2 n.s. Provisions -93 -75 18 -19% ORDI
Slide 19: 9M 2024 VS FY 2023: balance sheet
9M 2024 VS FY 2023: balance sheet €M ∆ vs FY 2023 9M 2024 FY 2023 Tangible Assets 6,643 6,789 146 Intangible Assets 3,630 3,725 95 Shareholdings and Other Non Current Financial Assets 83 87 4 Other Non Current Assets/Liabilities -188 -47 141 Deferred Tax Assets and Liabilities 464 556 92 Provisions
Slide 20: Energy scenario
Energy scenario UoM 9M 2023 9M 2024 Δ% vs 2023 Brent $/bbl 82 82 0% CO2 – EU ETS cost €/Tonn 88 66 -25% €/$ €/$ 1 1 0% Brent € €/bbl 76 75 -1% PSV(1) €/MWh 43 34 -22% Coal € (API2) €/Tonn 120 102 -15% PUN Baseload(2) €/MWh 129 102 -21% PUN Peak(2) €/MWh 137 107 -22% 20 PUN Off-Peak(2) €/MWh 124 99 -
Slide 21: Volumes
Volumes UoM 9M 2023 9M 2024 Δ vs 2023 Δ% vs 2023 A2A Group Thermal production GWh 7,001 4,053 -2,948 -42% - CCGT production GWh 5,506 3,761 -1,744 -32% - Coal production GWh 312 0 -312 -100% - Oil production GWh 1,183 292 -891 -75% A2A Group Renewable production GWh 3,080 4,879 1,800 58% - Hydro pro
Slide 22: Financials as of 30 September 2024
Financials as of 30 September 2024 Sound financial structure FY23 9M24 13% 16% Duration and Average Cost of debt Cost of Duration debt(1) ~6 2.7% 87% 84% Anni @9M 2024 Fix Float 22 Strengthened the Liquidity Position Strong commitment to current credit rating FY23 9M24 1,930 2,405 1,760 Agency Ratin
Slide 23: Redemptions profile 9M 2024
Redemptions profile 9M 2024 IFRS 16 Bonds Long Term Loans 727 710 22 674 7 651 615 6 4 13 526 522 491 507* 3 4 8 28 425 19 598 495 23 646 497 497 329 397 495 493 298 118 38 26 92 12 148 175 135 108 108 104 103 2 68 57 27 27 87 4 3 2 0 23 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 20
Slide 24: Sustainable Finance Highlights
Sustainable Finance Highlights Conventional vs ESG Debt as of 30 September 2024 | % ESG Debt evolution and Targets 120% 20% 100% +10% vs. Q3 2023 77% 80% 60% 100% 40% >90% 70% 77% >80% 58% 22% 58% 20% 44% 22% 28% 0% FY 2020 FY 2021 FY 2022 FY 2023 Q3 2024 2027 2030 2035 Conventional Debt ESG Debt Gr
Slide 25: 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 26: Contacts
Contacts A2A Investor Relations Team E-mail: ir@a2a.it Phone: +39 02 7720 3974 https://www.gruppoa2a.it/en/investors