Acea S.p.A. · MIL:ACE

Acea — FY2020 Earnings Presentation

21 slides from Acea's earnings presentation, Mar 10, 2021

  1. Slide 1: Acea Group 2020 Results

    ACEA GROUP 2020 RESULTS RO M E , M A R C H 1 0 , 2 0 2 1

  2. Slide 2: Performance and Delivery: Sustainability as a Driver of Growth

    P E R F O R M A N C E A N D D E L I V E RY S U S TA I N A B I L I T Y A S A D R I V E R O F G RO W T H A N D VA L U E C R E AT I O N REGULATED BUSINESSES SHOW LIMITED IMPACT ON EXTRAORDINARY RESILIENCE IN ACTIVITIES MOST EXPOSED A CHALLENGING ENVIRONMENT TO THE CRISIS EBITDA 3.05X CAPEX +11% +0.4% +

  3. Slide 3: Development of the Business Mix: Acquisitions and Consolidation

    P E R F O R M A N C E A N D D E L I V E RY D E V E L O P M E N T O F T H E B U S I N E S S M I X : AC Q U I S I T I O N S I N E N V I RO N M E N T A N D P H OTO V O LTA I C S E C TO R S , C O N S O L I D AT I O N O F S I I T E R N I < < < APRIL 2020 M AY 2020 ACQUISITION OF 60% OF ‘‘FERROCART’’ ACQU

  4. Slide 4: 2020 Key ESG Highlights

    2020 KEY ESG HIGHLIGHTS S U S TA I N A B I L I T Y AT T H E H E A RT O F A C E A ’ S S T R AT E G Y ACEA’S BUSINESSES ARE BY DEFINITION WAT E R ENERGY G E N E R AT I O N E N V I RO N M E N T COMMERCIAL & I N F R A S T RU C T U R E TRADING WATER LOSSES 2G SMART METERS ELECTRICITY TONNES OF WASTE INST

  5. Slide 5: COVID-19 Health Emergency

    C OV I D - 1 9 H E A LT H E M E R G E N C Y E V E RY D AY E S S E N T I A L S E RV I C E S T O O U R C O M M U N I T I E S G U A R A N T E E D D E L I V E R I N G C O N T I N U I T Y A N D E F F I C I E N C Y E V E N AT T H E H E I G H T O F T H E PA N D E M I C ESTABLISHMENT OF A COMMITTEE TO MANAG

  6. Slide 6: Key Financial Highlights

    R E S U LT S 2 0 2 0 KEY FINANCIAL HIGHLIGHTS 2020 2019 % CHANGE EBITDA (€M) (A) (B) (A/B) WELL AHEAD OF GUIDANCE CONSOLIDATED REVENUE 3,379.4 3,186.1 +6.1% INITIAL GUIDANCE: +6%/+8% EBITDA 1,155.5 1,042.3 +10.9% GUIDANCE IN JULY 2020: ≥ +8% EBIT 535.0 523.2 +2.3% ORGANIC GROWTH >+10% GROUP NET PROF

  7. Slide 7: Shareholder Return

    SHAREHOLDER RETURN 0.78 0.80^ 0.71 0.63 2017 2018 2019 2020 IN THE PERIOD 2020-2024 ^ The Board of Directors will propose the dividend for 2020 at the Annual General Meeting called for 22 and 23 April 2021, in first and second call, respectively * Based on consolidated net profit after non-controlli

  8. Slide 8: EBITDA by Business Area

    R E S U LT S 2 0 2 0 EBITDA BY BUSINESS AREA E B I T DA (€m) 109.4* 20.9 3.3 1,155.5 1%4% 1,042.3 (1.7) (18.7) 6% 53% EBITDA 36% 2020 2019 WATER ENERGY COMMERCIAL & ENVIRONMENT OTHER 2020 INFRASTRUCTURE TRADING BUSINESSES** AND HOLDCO EBITDA (€m) 614.4 412.9 72.4 50.3 5.5 WATER ENERGY INFRASTRUCTURE

  9. Slide 9: Organic EBITDA Growth

    R E S U LT S 2 0 2 0 O R G A N I C E B I T DA G ROW T H WIDER PERIMETER OF THE GROUP (€m) 102 1,155 1,042 75 971 7 (€m) 2020 2019 Change (36) (19) (16) ADF 60.4 18.1 +42.4 SII TERNI 2.2 0.9 +1.3 C O N S O R C I O AG U A A Z U L L I M A 8.9 1.1 +7.8 PESCARA DISTRIBUZIONE GAS 2.2 1.7 +0.5 A LTO S A N

  10. Slide 10: EBITDA and Key Indicators: Water

    E B I T DA A N D K E Y I N D I C ATO R S FINANCIAL HIGHLIGHTS (€m) 2020 (A) 2019 (B) % change (A/B) WATER EBITDA 614.4 505.0 +21.7% INCLUDING GAS DISTRIBUTION BUSINESS Acea Ato2 410.0 356.1 +15.1% Acea Ato5 26.7 24.4 +9.4% Gori 78.7 68.6 +14.7% ADF 60.4 18.1 N.S. SII Terni 2.2 0.9 N.S. Equity-accoun

  11. Slide 11: EBITDA and Key Indicators: Energy Infrastructure

    E B I T DA A N D K E Y I N D I C ATO R S FINANCIAL HIGHLIGHTS (€m) 2020 2019 % change NUMBER OF TOTAL ENERGY TOTAL (a) (b) (a/b) ELECTRICITY PODS ELECTRICITY DISTRIBUTED (‘000S) PRODUCED EBITDA 412.9 392.0 +5.3% (GWh) (GWh) INFRASTRUCTURE - Distribution 369.6 345.4 +7.0% ( I N C L U D I N G G E N E

  12. Slide 12: EBITDA and Key Indicators: Commercial & Trading

    E B I T DA A N D K E Y I N D I C ATO R S FINANCIAL HIGHLIGHTS (€m) 2020 (A) 2019 (B) % change (A/B) EBITDA 72.4 69.1 +4.8% Capex COMMERCIAL 44.1 43.1 +2.3% TOTAL GAS NUMBER OF GAS &TRADING TOTAL ENERGY NUMBER OF SOLD (GWH) ELECTRICITY SOLD (Mmc 3 ) CUSTOMERS CUSTOMERS (‘000s) (‘000s) 7,046 1.185 1.1

  13. Slide 13: EBITDA and Key Indicators: Environment

    E B I T DA A N D K E Y I N D I C ATO R S FINANCIAL HIGHLIGHTS (€m) 2020 (A) 2019 (B) % change (A/B) EBITDA 50.3 52.0 -3.3% ENVIRONMENT of which: Demap 4.0 1.8 N/S Berg 2.0 0.5 N/S Ferrocart/Cavallari 4.3 - N/S Capex 23.6 51.9 -54.5% TREATMENT AND DISPOSAL ELECTRICITY SOLD (GWh) (KTONNES) 1,607 1,264

  14. Slide 14: EBIT and Net Profit

    EBIT AND NET PROFIT 523.2 535.0 284 49 285 221 15 (25) (9) (13) (16) 2019 Water Release of CIP6 Antitrust 2019 Non-recurring Organic 2020 bonus Gala provisions fine normalised components 2020 growth (mainly due to revaluation following 2019 2020 consolidation of AdF) (€m) 2020 2019 % CHANGE Increase

  15. Slide 15: Capex

    CAPEX F U RT H E R A C C E L E R AT I O N I N I N V E S T M E N T S F O C U S I N G O N R E G U L AT E D A C T I V I T I E S 96 37 1 8 907 793 (28) 84% 16% 2019 WATER ENERGY COMMERCIAL & ENVIRONMENT OTHER BUSINESSES* 2020 INFRASTRUCTURE TRADING AND HOLDCO CAPEX 476 325 44 24 38 Investments in regula

  16. Slide 16: Focus on Improvements in Working Capital

    R E S U LT S 2 0 2 0 F O C U S O N I M P RO V E M E N T S I N W O R K I N G C A P I TA L (€m) 2020 2019 E B I T DA 1,155 1,042 INCREASE €73M C H A N G E I N W O R K I N G C A P I TA L (38) (16) CAPEX (886)* (793) REGULATORY FACTORS: €63m F R E E C A S H F L OW 231 233 IMPACT OF COVID-19 ON COLLECTIO

  17. Slide 17: Net Debt Better Than Guidance

    R E S U LT S 2 0 2 0 NET DEBT BETTER THAN GUIDANCE 31 Dec 2020 30 Sept 2020 31 Dec 2019 Change Change (€m) (a) (b) (c) (a-b) (a-c) 799 Net debt 3,528.0 3,535.4 3,062.8 (7.4) 465.2 688 600 575 557 Medium/long-term 4,130.2 4,116.9 3,523.3 13.3 606.9 Short-term (602.2) (581.5) (460.5) (20.7) (141.7) 38

  18. Slide 18: Financial Performance Ahead of Guidance

    R E S U LT S 2 0 2 0 FINANCIAL PERFORMANCE AHEAD OF GUIDANCE 21 JANUARY 2021 29 JANUARY 2020 Placement of first GREEN BOND of €900m successfully completed. + worth €500m under EMTN Placement of bonds Issue under Green Financing Framework+and EMTN programme in two tranches: programme. Bonds have a 9-

  19. Slide 19: Q&A Session

    Q&A SESSION

  20. Slide 20: 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

  21. Slide 21: Slide 21

Acea — FY2020 Earnings Presentation on 6ix