A2A S p A : 2025 Separate Financial Statements

About this update from A2a S.p.a.

a2a LIFE COMPANY 2025 Separate financial statements Willow It draws lifeblood from flowing water, which returns clean to the cycle bringing new life, every day. 2025 Separate financial statements Courtesy version provided in PDF format, which differs from the format required by Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 these Financial Statements are available at the website gruppoa2a.it Contents Overview of performance, financial conditions and net debt 2 Explanatory notes 2.1 General information on A2A S.p.A. 32 1.a 4 2.2 Changes in International Financial Reporting Standards 35 Basis of preparation 38 Notes to the statement of financial position 59 Net financial debt 86 Separate financial statements Statement of financial position 14 Income statement 16 Statement of comprehensive Income 17 Statement of cash flows 18 Statement of changes in equity 20 1.b Financial Statements pursuant to Consob resolution no. 15519 of July, 27 2006 Notes to the income statement 88 Note on related party transaction 104 Significant non-recurring events and transactions, pursuant to Consob Communication No. DEM/6064293 of July 28, 2006 109 Guarantees and commitments with third parties 112 Other information 113 Statement of financial position pursuant to Consob resolution no. 15519 of July, 27 2006 24 Income Statement pursuant to Consob resolution no. 15519 of July, 27 2006 26 Statement of cash flows pursuant to Consob resolution no. 15519 of July, 27 2006 27 A2A 2 Separate financial statements 2025 3 Attachments 1/a - Statement of changes in 4 Independent Auditors' Report investments in subsidiaries 144 1/b Statement of changes in investments in affiliates 145 1/c Statement of changes in investments in other companies 146 2/a - List of investments in subsidiaries 147 2/b - List of investments in affiliates 148 Key data of the financial statements 5 Report of the Board of Auditors 159 of the main subsidiaries and affiliates prepared according to IFRS (pursuant to art. 2429.4 of the Italian Civil Code) 150 Key data of the financial statements of the main subsidiaries and affiliates prepared according to ITALIAN GAAP (pursuant to art. 2429.4 of the Italian Civil Code) 154 Certification of the financial statements pursuant to article 154-bis, paragraph 5 of Legislative Decree no. 58/98 156 169 This is a translation of the Italian original "Bilancio separato 2025" and has been prepared solely for the convenience of international readers. In the event of any ambiguity the Italian text will prevail. The Italian original is available at the website gruppoa2a.it A2A Separate financial statements 2025 3 Overview of performance, financial conditions and net debt A2A S.p.A. The purpose of the analysis below is to present, for A2A S.p.A., the Company's situation, performance and results of operations, supplementing as provided in the Report on Operations submitted with the A2A Group financial statements. The Parent Company is responsible for strategic vision, planning, control, financial management and coordination of the A2A Group activities. It also provides services to support the business and operating activities of Group companies (administrative, legal, supply, and personnel management services, information technology and communications) in order to optimize the resources available and use existing expertise in the most efficient manner. These services are governed by intercompany service agreements. Finally, A2A S.p.A. provides its subsidiaries with office space and operating areas, as well as related services. A2A S.p.A. owns a number of hydroelectric plants located in Valtellina and Valchiavenna in Lombardy, as well as in Calabria and Friuli. In addition, A2A S.p.A. is responsible for managing the Group's generation plant portfolio, including the purchase and sale of electricity, gaseous and non-gaseous fuels, gaseous and non-gaseous fuels, and environmental certificates on domestic and international wholesale markets. To this end, the Company operates through bilateral contracts (OTC) on the major brokerage platforms but is also present on the major spot and forward exchanges organized in Italy and abroad. Results millions of euro Income Statement 12.31.2025 12.31.2024 Change Percentage change Revenue from the sales and services 9,226.8 8,700.0 526.8 6.1% Other income 43.3 52.8 (9.5) (18.0%) Total Revenue 9,270.1 8,752.8 517.3 5.9% Operating Expenses Expenses for raw materials and services (8,130.7) (7,304.3) (826.4) 11.3% Other operating expenses (542.8) (576.5) 33.7 (5.8%) Total Operating Expenses (8,673.5) (7,880.8) (792.7) 10.1% Personnel expenses (211.6) (206.3) (5.3) 2.6% Gross Operating profit (loss) - EBITDA 385.0 665.7 (280.7) (42.2%) Depreciation, amortization and impairment losses (177.5) (164.3) (13.2) 8.0% Accruals (28.0) (28.8) 0.8 (2.8%) Operating profit (loss) - EBIT 179.5 472.6 (293.1) (62.0) Finance income 705.0 651.7 53.3 8.2% Finance expenses (187.6) (172.2) (15.4) 8.9% Net finance income (expenses) 517.4 479.5 37.9 7.9% Profit (loss) before taxes 696.9 952.1 (255.2) (26.8%) Income taxes (52.7) (163.7) 111.0 (67.8%) Profit (loss) after taxes from continuing operations 644.2 788.4 (144.2) (18.3%) Profit (loss) from discontinued/held for sale operations - - - Profit (loss) for the year 644.2 788.4 (144.2) (18.3%) A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 In the year in question A2A S.p.A. shows revenues for a total of 9,270.1 million euro (8,752.8 million euro in the previous year). Sales revenues (8,942.5 million euro) mainly refer to electricity sales to wholesalers, institutional operators, even on IPEX markets (Italian Power Exchange) and subsidiaries, sales of gas and fuels to third parties and subsidiaries and the sale of materials and environmental certificates. Revenues from services (284.3 thousand euro) mainly relate to provisions to subsidiaries of administrative, fiscal, legal, managerial and technical services, and revenues from the Municipality of Milan for the video surveillance service. The increase in sales revenues is mainly due to the increase in prices on the wholesale markets of both electricity and gas, as well as higher revenues from sales of CO 2 mainly due to the higher functioning of the thermoelectric plants managed by A2A S.p.A. through tolling contracts. Other income (43.3 million euro) have decreased compared to the previous year mainly due to both the lower revenues related to the feed-in tariff incentive mechanism and the lower consideration granted by EP Produzione as the assignee for dispatching of the Scandale plant for the year 2025. Operating expenses amounted to 8,673.5 million euro (7,880.8 million euro at December 31, 2024) and refer to costs for raw materials (7,658.1 million euro) related primarily to purchases of energy and fuels, both for electricity production and for resale to customers and wholesalers, as well as purchases of materials and environmental certificates; service costs (472.6 million euro), which refer to the logistics costs for the transport on the national network of natural gas, costs for maintenance and repairs related to both the plants and the information systems of the company, as well as costs for services from third parties and from subsidiaries and associates; to other operating costs (542.8 million euro), which refer to the contracting of the thermoelectric production plants tolling agreement of subsidiaries, the costs relating to the use of a portion of the electricity capacity of Ergosud S.p.A., as well as water derivation fees, damages and penalties. The increase in operating costs derives mainly from the increase in raw material costs, attributable both to the increase in unit procurement prices, due to the increase recorded in the reference scenario, and to the higher volumes purchased, to the higher purchases of environmental certificates, the increase in which is affected both by the higher purchases of CO 2 due to the higher volumes emitted related to the higher thermoelectric production and the higher unit procurement cost, by the increase in costs for the transport and storage of natural gas, partly offset by the decrease in maintenance costs and costs for the provision of IT services, communication and sponsorship. Personnel expenses amounted to 211.6 million euro (206.3 million euro at December 31, 2024). The increase for the year includes both the effect of contractual renewals and the effect of the increase in staff. Due to the dynamics mentioned above the Gross operating profit - EBITDA amounted to 385.0 million euro (665.7 million euro at December 31, 2024). "Amortization and depreciation, provisions and impairment losses" of the year amounted to 205.5 million euro (193.1 million euro at December 31, 2024) and include amortization, depreciation and impairment losses on non-current assets for 177.5 million euro (164.3 million euro at December 31, 2024) and provisions for 28.0 million euro (28.8 million euro at December 31, 2024), mainly related to provisions for risks. A2A Separate financial statements 2025 "Operating profit - Ebit" was positive for 179.5 million euro (472.6 million euro at December 31, 2024). Net finance income and expenses reported a positive balance of 517.4 million euro (positive for 479.5 million euro at December 31, 2024). This item includes dividends from investees companies of 535.0 million euro (395.7 million euro at December 31, 2024), as well as net financial expense of 17.6 million euro (net financial income 83.8 million euro at December 31, 2024). The "Profit before taxes" was positive for 696.9 million euro (positive for 952.1 million euro at December 31, 2024). "Income taxes" amounted to 52.7 million euro (163.7 million euro at December 31, 2024) and refer to current taxes calculated on taxable income IRES and IRAP, partially offset by deferred tax assets and liabilities. The "Profit of the year" was positive for 644.2 million euro (788.4 million euro at December 31, 2024). *** Net year capex amounted to 606.8 million euro and included net investments in shareholdings, treasury shares, as well as interventions on hydroelectric plants, computer equipment and network devices, buildings, fixed assets in progress, and capex in the Group's information systems and software. During the year, treasury shares were also purchased for 14,9 million euro. A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 Statement of financial position millions of euro 12.31.2025 12.31.2024 Change Percentage change Capital employed Net non-current assets 6,886.9 6,440.1 446.8 6.9% - Property. plant and equipment 870.0 873.0 (3.0) (0.3%) - Intangible assets and goodwill 209.0 189.1 19.9 10.5% - Shareholdings and other non-current financial assets (*) 5,966.3 5,547.6 418.7 7.5% - Other non-current assets/liabilities (*) 28.6 24.2 4.4 18.2% - Deferred tax assets/liabilities 111.0 99.4 11.6 11.7% - Provisions for risks and charges (200.1) (183.6) (16.5) 9.0% - Employee benefits (97.9) (109.6) 11.7 (10.7%) of which through equity (22.2) (19.1) (3.1) 16.2% Net Working Capital and Other Current Assets/ Liabilities (453.8) (138.5) (315.3) n.s. Net Working Capital: (557.8) (274.4) (283.4) n.s. Inventories 159.5 184.4 (24.9) (13.5%) Trade receivables 2,766.5 1,956.7 809.8 41.4% Trade payables (3,483.8) (2,415.5) (1,068.3) 44.2% Other current assets/liabilities: 104.0 135.9 (31.9) (23.5%) - Other current assets/liabilities (*) (10.7) 208.2 (218.9) n.s. - Current tax assets/liabilities 114.7 (72.3) 187.0 n.s. of which through equity 1.6 (11.3) 12.9 n.s. Assets/liabilities held for sale (*) - - - of which through equity Total capital employed 6,433.1 6,301.6 131.5 2.1% Sources of funds Equity 5,318.7 5,016.5 302.2 6.0% Net non-current financial position 5,603.7 5,634.9 (31.2) (0.6%) Net current financial position (4,489.3) (4,349.8) (139.5) 3.2% Total Net Financial Position 1,114.4 1,285.1 (170.7) (13.3%) of which through equity (9.3) (5.4) (3.9) 72.2% Total sources of funds 6,433.1 6,301.6 131.5 2.1% (*) Excluding balances included in the Net Financial Position. A2A Separate financial statements 2025 The Statement of financial position of A2A S.p.A. includes, with respect to the situation at December 31, 2024, the effect of the following non-recurring transactions: acquisition of the "Digital and Supply Chain" business unit from AEB S.p.A., effective as of January 1, 2025; transfer of the "Project Service & PMO" business unit to A2A Services & Real Estate S.p.A., effective as of January 1, 2025; transfer of the "Innovation and Corporate Venture Capital Activities" business unit to A2A Life Ventures S.r.l., effective as of October 1, 2025. At December 31, 2025, " Capital employed " totalled 6,433.1 million euro, partly covered by " Equity " in the amount of 5,318.7 million euro and net debt of 1,114.4 million euro; provided below are the main items that make up the Capital Employed. " Net non-current assets " amounted to 6,886.9 million euro, up 446.8 million euro compared to December 31, 2024. Changes are detailed below: Property, plant and equipment decreased by 3.0 million euro due to: decrease of 112.0 million euro for the depreciation charge for the year; investments made during the year for a total of 106.8 million euro; other increases for 2.3 million euro resulting mainly from changes in contracts for rights of use; negative effect non-recurring transactions for 0.1 million euro; Intangible assets and goodwill increased by 19.9 million euro compared to December 31, 2024, due to: investments made during the year for a total of 85.4 million euro; decrease of 65.5 million euro for the charge for the year; Shareholdings and other non-current financial assets amounted to 5,966.3 million euro, up 418.7 million euro compared to December 31, 2024, attributable to: 400.0 million euro increase in the shareholding in A2A Rinnovabili S.p.A. following the capital contribution approved by the Board of Directors on May 13, 2025 for 350.0 million euro and the conversion of the third tranche of part of the financial receivable from the company into equity of the same for 50.0 million euro; increase in the shareholding in Unareti S.p.A. for 163.7 million euro following the merger by incorporation, on July 1, 2025, of the companies LD Reti S.r.l. (162.6 million euro) and Camuna Energia S.r.l. (0.9 million euro) and a simultaneous decrease in shareholdings in the merged companies. It should be noted that the value of the investment in Camuna Energia S.r.l. had increased during the year before the merger by 0.2 million euro for the acquisition of 25.5% of the share capital of the shareholding to bring the ownership stake of A2A S.p.A. to 100%; incorporation of the company A2A Life Ventures S.r.l. and subsequent transfer, for 41.6 million euro, of the "Innovation and Corporate Venture Capital Activities" business unit, effective October 1, 2025; increase of 6.8 million euro relating to the capital contribution subscribed in the investee company A2A E-MOBILITY S.r.l.; increase of 3.1 million euro for capital contribution subscribed in the company TEXELERA S.c. a r.l.; decrease of 0.2 million euro of the shareholding in Duereti S.r.l. for price adjustment; A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 total increase of 2.7 million euro in shareholdings in subsidiaries resulting from the distributed shareholding plan relating to shares allocated free of charge to employees of subsidiaries; effect of non-recurring transactions negative for 43.0 million euro relating to the transfer to A2A Life Ventures S.r.l. of the "Innovation and Corporate Venture Capital Activities" BU, referring to investments made in innovative start-ups through Corporate Venture Capital projects, which had increased by 7.5 million euro during the year; Other Non-Current Assets and Liabilities increased by 4.4 million euro, mainly due to less non-current liabilities; Deferred tax assets amounted to 111.0 million euro (99.4 million euro at December 31, 2024) and show an increase of 11.6 million euro, including the positive effect of non-recurring transactions, positive for 2.4 million euro; Provisions for risks and charges recorded an increase of 16.5 million euro. The following should be noted: an increase resulting from net provisions for the year of 28.2 million euro, mainly related to public water derivation fees and lawsuits pending with third parties; utilisations for the year of 3.6 million euro, while other negative changes amounted to 8.1 million euro; Employee benefits showed a decrease of 11.7 million euro, referring to actuarial valuations, disbursements for the year and payments to pension funds, partly offset by net provisions for the year and the positive effect of non-recurring transactions. Net Working Capital and Other Current Assets/Liabilities " Net Working Capital ", defined as the algebraic sum of trade receivables, closing inventories and trade payables, amounted to a negative 557.8 million euro, down by 283.4 million euro compared to December 31, 2024. Comments on the main items are given below: " Inventories " amounted to 159.5 million euro (184.4 million euro at December 31, 2024), net of the relative obsolescence provision for 0.8 million euro, unchanged compared to the previous year. The decrease is mainly attributable to the decrease in gas inventories compared to the end of the previous year, which mainly reflects the lower volumes of gas in storage; " Trade receivables " amounted to 2,766.5 million euro (1,956.7 million euro at December 31, 2024), with an increase of 809.8 million euro mainly due to the increase in tariffs for the sale of electricity and gas observed during the year in the reference scenario; The "Bad debts provision", calculated in compliance with IFRS 9, amounted to 0.4 million euro and showed a net decrease of 0.3 million euro compared to December 31, 2024; " Trade payables " amounted to 3,483.8 million euro and increased by 1,068.3 million euro as a result of an increase in commodity trading transactions with bilateral counterparties. "Other current assets/liabilities" recorded a net decrease of 31.9 million euro, mainly due to: net decrease in derivative assets/liabilities for 149.1 million euro; decrease in security deposits for 40.7 million euro; net increase in current tax assets for 187.0 million euro; net decrease in assets/liabilities for tax consolidation for 11.7 million euro; other decreases in other current assets for 16.6 million euro. A2A Separate financial statements 2025 Equity " Equity " amounted to 5,318.7 million euro and showed a positive change for a total of 302.2 million euro. The result for the year had a positive effect of 644.2 million euro, offset by the distribution of the dividend of 313.3 million euro, as well as the recognition of the second tranche of coupons, for 37.5 million euro and the related tax effect of 9.0 million euro, on the hybrid subordinated non-convertible bond issue; there was also a positive net effect in the valuation of cash flow hedge derivatives and IAS 19 reserves for 12.2 million euro. The " Net Financial Position " at December 31, 2025 amounted to 1,114.4 million euro (1,285.1 million euro at end 2024). The gross debt amounted to 7,193.7 million euro, up by 8.3 million euro compared to December 31, 2024. Cash and cash equivalents amounted to 1,710.7 million euro, an increase of 387.5 million euro. The other net financial assets/liabilities showed an active balance of 4,368.6 million euro with a net increase of 208.6 million euro as compared to December 31, 2024. A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 A2A Separate financial statements 2025 1.a Separate financial statements Statement of financial position (1) amounts in euro Assets Note 12.31.2025 12.31.2024 Non-current assets Property, plant and equipment 1 870,008,247 872,997,315 Intangible assets 2 142,348,852 122,442,058 Goodwill 3 66,658,839 66,658,839 Shareholdings 4 5,965,177,731 5,511,097,534 Other non-current financial assets 4 283,117,168 401,643,203 Deferred tax assets 5 111,007,182 99,326,563 Non-current derivatives 6 - 1,040,616 Other non-current assets 6 28,681,524 27,661,294 Total non-current assets 7,466,999,543 7,102,867,422 Current assets Inventories 7 159,481,250 184,413,436 Trade receivables 8 2,766,450,563 1,956,695,628 Current derivatives 9 640,875,475 865,148,611 Other current assets 9 185,611,590 252,032,500 Current financial assets 10 4,122,617,708 4,229,639,783 Current tax assets 11 114,703,209 16,542,579 Cash and cash equivalents 12 1,710,651,370 1,323,166,285 Total current assets 9,700,391,165 8,827,638,822 Assets held for sale - - Total assets 17,167,390,708 15,930,506,244 (1) As required by Consob Resolution no. 15519 of July 27, 2006, the effects of relations with related party transactions in the separate financial statements are highlighted in the accounting statements and commented on in Note 35. Significant non-recurring events and transactions in the separate financial statements are provided in Note 36 pursuant to Consob Communication DEM/6064293 of July 28, 2006. A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 amounts in euro Equity and liabilities Note 12.31.2025 12.31.2024 Equity Share capital 13 1,629,110,744 1,629,110,744 (Treasury shares) 14 (9,706,324) - Reserves 15 3,055,012,809 2,599,010,980 Profit (loss) for the year 16 644,234,085 788,384,491 Total equity 5,318,651,314 5,016,506,215 Liabilities Non-current liabilities Non-current financial liabilities 17 5,849,765,302 5,982,457,503 Employee benefits 18 97,871,891 109,634,645 Provisions for risks and charges 19 184,121,032 182,710,105 Non-current derivatives 20 36,006,715 18,540,323 Other non-current liabilities 20 100,863 3,454,934 Total non-current liabilities 6,167,865,803 6,296,797,510 Current liabilities Provisions for risks and charges, current portion 19 15,993,004 902,319 Trade payables 21 3,483,747,020 2,415,495,893 Current derivatives 22 691,546,049 766,696,916 Other current liabilities 22 145,679,993 142,292,914 Current financial liabilities 23 1,343,907,525 1,202,973,435 Current tax liabilities 24 - 88,841,042 Total current liabilities 5,680,873,591 4,617,202,519 Total liabilities 11,848,739,394 10,914,000,029 Liabilities directly associated with assets held for sale - - Total equity and liabilities 17,167,390,708 15,930,506,244 A2A Separate financial statements 2025 Income statement (1) amounts in euro Note 01.01.2025 12.31.2025 01.01.2024 12.31.2024 Revenue Revenue from sales and services 9,226,751,842 8,700,014,382 Other income 43,330,589 52,802,126 Total revenue 26 9,270,082,431 8,752,816,508 Operating expenses Expenses for raw materials and services 8,130,740,375 7,304,341,257 Other operating expenses 542,753,922 576,500,085 Total operating expenses 27 8,673,494,297 7,880,841,342 Personnel expenses 28 211,561,806 206,233,576 Gross operating profit (loss) - EBITDA 29 385,026,328 665,741,590 Depreciation, amortization and impairment losses 30 177,564,869 164,271,698 Impairment losses on trade receivables 30 (238,533) (2,016,578) Other provisions for risks 30 28,190,378 30,865,342 Operating profit (loss) - EBIT 31 179,509,614 472,621,128 Finance income and expenses Finance income 705,013,564 651,696,159 Finance expenses 187,569,357 172,189,763 Net finance income (expenses) 32 517,444,207 479,506,396 Profit (loss) before taxes 696,953,821 952,127,524 Income taxes 33 52,719,736 163,743,033 Profit (loss) after taxes from continuing operations 644,234,085 788,384,491 Profit (loss) from discontinued/held for sale operations - - Profit (loss) for the year 34 644,234,085 788,384,491 (1) As required by Consob Resolution no. 15519 of July 27, 2006, the effects of relations with related party transactions in the separate financial statements are highlighted in the accounting statements and commented on in Note 35. Significant non-recurring events and transactions in the separate financial statements are provided in Note 36 pursuant to Consob Communication DEM/6064293 of July 28, 2006. A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 1.a.3 Statement of comprehensive income amounts of euro 12.31.2025 12.31.2024 Profit (loss) for the year (A) 644,234,085 788,384,491 Net actuarial gains (losses) 9,744,734 12,503,100 Related tax (2,868,266) (5,019,053) Post-tax net actuarial gains (losses) (B) 6,876,468 7,484,047 Effective portion of net gains (losses) on cash flow hedges 8,975,531 (12,068,264) Related tax (3,585,932) 3,190,002 Post-tax net gains (losses) on cash flow hedges (C) ( * ) 5,389,599 (8,878,262) Fair value gains (losses) on financial assets (9,007,576) 9,007,576 Related tax 2,663,540 (2,663,540) Post-tax fair value gains (losses) on financial assets (D) (6,344,036) 6,344,036 Comprehensive income (expense) (A)+(B)+(C)+(D) 650,156,116 793,334,312 * the effects of these items will be transferred to the Income Statement in the following years A2A Separate financial statements 2025 Statement of cash flows (1) amounts in euro 12.31.2025 12.31.2024 Cash flows from operating activities Profit (loss) for the year 644,234,085 788,384,491 Adjustments for: Income tax expense 52,719,736 163,743,033 Net finance (income) expense 17,385,803 (83,816,888) (Gains) losses on sales (3,114,748) (13,975) Depreciation, amortization and impairment losses 177,582,005 164,271,698 Provisions 27,951,845 28,848,764 Share of (profit) loss of shareholdings 204,200 10,329 Interest and other finance income received 213,580,633 249,378,152 Interest and other finance expense paid (167,891,580) (144,149,037) Dividends from shareholdings (535,034,210) (395,693,766) Dividends from shareholdings received 535,034,210 395,693,766 Income taxes paid (216,953,651) (146,095,574) Dividends paid (313,290,528) (300,132,326) Change in trade receivables (809,516,403) 225,199,003 Change in trade payables 1,068,251,127 (562,992,164) Change in inventories 24,932,187 (10,247,243) Other changes (***) 177,463,644 83,390,094 Net cash flows from (used in) operating activities 893,538,355 455,778,357 Cash flows from investing activities Investments in property, plant and equipment (106,783,269) (68,816,347) Investments in intangible assets (85,379,494) (72,771,363) Purchases of other equity investments and securities (*) (418,491,855) (1,311,874,782) Proceeds from the sale of property, plant and equipment, intangible assets and other shareholdings 3,856,186 886,430 Increase in other investing activities (**) (80,000,000) (109,000,000) Decrease in other investing activities (**) 305,135,318 790,002,972 Net cash flows from (used in) investing activities (381,663,113) (771,573,090) Free cash flow 511,875,240 (315,794,733) Follow >> A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 Continue >> 12.31.2025 12.31.2024 Cash flows from financing activities Changes in financial assets Change in intercompany currency accounts (68,529,221) (1,254,517,713) Total changes in financial assets (*) (68,529,221) (1,254,517,713) Change in financial liabilities Change in intercompany currency accounts 77,574,803 (266,376,310) Proceeds from borrowings/issue of bonds 2,846,354,700 1,810,000,000 Repayment of borrowings/redemption of bonds (2,906,031,621) (849,509,881) Payment of lease liabilities (21,315,235) (20,399,783) Total change in financial liabilities (*) (3,417,353) 673,714,026 Equity instruments Repurchase of treasury shares (14,943,582) - Proceeds from issue of perpetual hybrid bonds - 741,812,350 Interest paid on perpetual hybrid bonds (37,500,000) (9,426,209) Equity instruments (52,443,582) 732,386,141 Net cash flows from (used in) financing activities (124,390,155) 151,582,454 Net increase (decrease) in cash and cash equivalents 387,485,085 (164,212,279) Cash and cash equivalents at the beginning of the year 1,323,166,285 1,487,378,564 Cash and cash equivalents at the end of the year 1,710,651,370 1,323,166,285 (*) Net of balances recognized through equity and other statement of financial position items (**) These mainly refer to loans granted to subsidiaries. (***) Primarily includes changes in the fair value of commodity derivatives. (1) As required by Consob Resolution no. 15519 of July 27, 2006, the effects of relations related party transactions in the separate financial statements are highlighted in the accounting statements and commented on in Note 35. A2A Separate financial statements 2025 Statement of changes in equity amounts in euro Share capital Note 13 Treasury shares Note 14 Hedging reserve Note 15 Reserve Other Profit for equity reserves (loss) instruments - for the year perpetual hybrid bond Note 15 Note 15 Note 16 Total equity Equity at December 31, 2023 1,629,110,744 - (3,785,619) - 1,675,120,438 488,210,234 3,788,655,797 Allocation of 2023 profit 488,210,234 (488,210,234) - Distribution of dividends (300,132,326) (300,132,326) Fair value gains (losses) on financial assets (*) 6,344,036 6,344,036 Net actuarial gains (losses) (IAS 19) (*) 7,484,047 7,484,047 Net gains (losses) on cash flow hedges (*) (8,878,262) (8,878,262) Change in perpetual hybrid bonds 741,812,350 741,812,350 Interest paid on perpetual hybrid bonds (9,426,209) (9,426,209) Other changes 2,262,291 2,262,291 Profit (loss) for the year 788,384,491 788,384,491 Equity at December 31, 2024 1,629,110,744 - (12,663,881) 741,812,350 1,869,862,511 788,384,491 5,016,506,215 Share capital Note 13 Treasury Hedging shares reserve Note 14 Note 15 Reserve Other Profit for equity reserves (loss) instruments - for the year perpetual hybrid bond Note 15 Note 15 Note 16 Total equity Equity at December 31, 2024 1,629,110,744 - (12,663,881) 741,812,350 1,869,862,511 788,384,491 5,016,506,215 Effect non-recurring transactions (236,756) (236,756) Allocation of 2024 profit 788,384,491 (788,384,491) - Distribution of dividends (313,290,528) (313,290,528) Fair value gains (losses) on financial assets and liabilities (*) (683,466) (683,466) Net actuarial gains (losses) (IAS 19) (*) 6,876,468 6,876,468 Net gains (losses) on cash flow hedges (*) 5,389,599 5,389,599 Interest paid on perpetual hybrid bonds (37,500,000) (37,500,000) Other changes 7,062,021 7,062,021 Repurchase of treasury shares (14,943,582) (14,943,582) Issuance of treasury shares 5,237,258 5,237,258 Profit (loss) for the year - 644,234,085 644,234,085 Equity at December 31, 2025 1,629,110,744 (9,706,324) (7,274,282) 741,812,350 2,320,474,741 644,234,085 5,318,651,314 (*) Included in other comprehensive income (expense). A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 A2A Separate financial statements 2025 1.b Financial Statements pursuant to Consob resolution no. 15519 of July, 27 2006 Statement of financial position pursuant to Consob resolution no. 15519 of July, 27 2006 amounts in euro Assets 12.31.2025 of which Related Parties (note 35) 12.31.2024 of which Related Parties (note 35) Non-current assets Property, plant and equipment 870,008,247 22,664,873 872,997,315 29,972,788 Intangible assets 142,348,852 122,442,058 Goodwill 66,658,839 66,658,839 Shareholdings 5,965,177,731 5,965,177,731 5,511,097,534 5,511,097,534 Other non-current financial assets 283,117,168 281,940,448 401,643,203 365,009,059 Deferred tax assets 111,007,182 99,326,563 Non-current derivatives - 1,040,616 Other non-current assets 28,681,524 27,031 27,661,294 27,031 Total non-current assets 7,466,999,543 7,102,867,422 Current assets Inventories 159,481,250 184,413,436 Trade receivables 2,766,450,563 902,657,710 1,956,695,628 987,650,961 Current derivatives 640,875,475 865,148,611 Other current assets 185,611,590 148,218,219 252,032,500 157,608,984 Current financial assets 4,122,617,708 4,104,633,262 4,229,639,783 4,201,803,096 Current tax assets 114,703,209 16,542,579 Cash and cash equivalents 1,710,651,370 1,323,166,285 Total current assets 9,700,391,165 8,827,638,822 Assets held for sale - - Total assets 17,167,390,708 15,930,506,244 A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 amounts in euro Equity and liabilities 12.31.2025 of which Related Parties (note 35) 12.31.2024 of which Related Parties (note 35) Equity Share capital 1,629,110,744 1,629,110,744 (Treasury shares) (9,706,324) - Reserves 3,055,012,809 2,599,010,980 Profit (loss) for the year 644,234,085 788,384,491 Total equity 5,318,651,314 5,016,506,215 Liabilities Non-current liabilities Non-current financial liabilities 5,849,765,302 20,584,518 5,982,457,503 26,253,581 Employee benefits 97,871,891 109,634,645 Provisions for risks and charges 184,121,032 - 182,710,105 8,218,636 Non-current derivatives 36,006,715 18,540,323 Other non-current liabilities 100,863 3,454,934 Total non-current liabilities 6,167,865,803 6,296,797,510 Current liabilities Provisions for risks and charges current portion 15,993,004 902,319 Trade payables 3,483,747,020 323,408,963 2,415,495,893 313,093,195 Current derivatives 691,546,049 766,696,916 Other current liabilities 145,679,993 16,802,819 142,292,914 14,279,712 Current financial liabilities 1,343,907,525 397,670,969 1,202,973,435 322,408,212 Current tax liabilities - 88,841,042 Total current liabilities 5,680,873,591 4,617,202,519 Total liabilities 11,848,739,394 10,914,000,029 Liabilities directly associated with assets held for sale - - Total equity and liabilities 17,167,390,708 15,930,506,244 A2A Separate financial statements 2025 Income Statement pursuant to Consob resolution no. 15519 of July, 27 2006 amounts in euro 01.01.2025 12.31.2025 of which Related Parties (note 35) 01.01.2024 12.31.2024 of which Related Parties (note 35) Revenue Revenue from sales and services 9,226,751,842 5,296,868,222 8,700,014,382 4,988,816,350 Other income 43,330,589 6,675,156 52,802,126 5,725,889 Total revenue 9,270,082,431 8,752,816,508 Operating expenses Expenses for raw materials and services 8,130,740,375 495,064,474 7,304,341,257 493,935,833 Other operating expenses 542,753,922 396,895,907 576,500,085 375,594,552 Total operating expenses 8,673,494,297 7,880,841,342 Personnel expenses 211,561,806 1,784,000 206,233,576 1,760,162 Gross operating profit (loss) - EBITDA 385,026,328 665,741,590 Depreciation, amortization and impairment losses 177,564,869 6,509,527 164,271,698 6,728,531 Impairment losses on trade receivables (238,533) (2,016,578) Other provisions for risks 28,190,378 30,865,342 Operating profit (loss) - EBIT 179,509,614 472,621,128 Finance income and expenses Finance income 705,013,564 676,904,233 651,696,159 600,234,186 Finance expenses 187,569,357 7,397,345 172,189,763 11,906,806 Net finance income (expenses) 517,444,207 479,506,396 Profit (loss) before taxes 696,953,821 952,127,524 Income taxes 52,719,736 163,743,033 Profit (loss) after taxes from continuing operations 644,234,085 788,384,491 Profit (loss) from discontinued/held for sale operations - - Profit (loss) for the year 644,234,085 788,384,491 A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 1.b.3 Statement of cash flows pursuant to Consob resolution no. 15519 of July, 27 2006 amounts in euro 01.01.2025 12.31.2025 of which Related Parties (note 35) 01.01.2024 12.31.2024 of which Related Parties (note 35) Cash flows from operating activities Profit (loss) for the year 644,234,085 788,384,491 Adjustments for: Income tax expense 52,719,736 163,743,033 Net finance (income) expense 17,385,803 (134,676,878) (83,816,888) (192,633,615) (Gains) losses on sales (3,114,748) (13,975) Depreciation, amortization and impairment losses 177,582,005 6,509,527 164,271,698 6,728,531 Provisions 27,951,845 28,848,764 Share of (profit) loss of shareholdings 204,200 204,200 10,329 Interest and other finance income received 213,580,633 165,301,709 249,378,152 203,044,533 Interest and other finance expense paid (167,891,580) (7,208,889) (144,149,037) Dividends from shareholdings (535,034,210) (535,034,210) (395,693,766) (395,693,766) Dividends from shareholdings received 535,034,210 535,034,210 395,693,766 395,693,766 Income taxes paid (216,953,651) (146,095,574) Dividends paid (313,290,528) (300,132,326) Change in trade receivables (809,516,403) 84,993,251 225,199,003 368,639,418 Change in trade payables 1,068,251,127 10,315,768 (562,992,164) (135,737,296) Change in inventories 24,932,187 (10,247,243) Other changes (***) 177,463,644 9,122,378 83,390,094 (22,318,127) Net cash flows from (used in) operating activities 893,538,355 455,778,357 Cash flows from investing activities Investments in property, plant and equipment (106,783,269) (68,816,347) Investments in intangible assets (85,379,494) (72,771,363) Purchases of other equity investments and securities (*) (418,491,855) (412,471,914) (1,311,874,782) (1,308,723,976) Proceeds from the sale of property, plant and equipment, intangible assets and other shareholdings 3,856,186 886,430 Increase in other investing activities (**) (80,000,000) (80,000,000) (109,000,000) (109,000,000) Decrease in other investing activities (**) 305,135,318 305,135,318 790,002,972 789,215,316 Net cash flows from (used in) investing activities (381,663,113) (771,573,090) Follow >> A2A Separate financial statements 2025 Continue >> 01.01.2025 12.31.2025 of which Related Parties (note 35) 01.01.2024 12.31.2024 of which Related Parties (note 35) Free cash flow 511,875,240 (315,794,733) Free cash flow Cash flows from financing activities Change in intercompany currency accounts (68,529,221) (68,529,221) (1,254,517,713) (1,254,517,713) Total changes in financial assets (*) (68,529,221) (1,254,517,713) Change in financial liabilities Change in intercompany currency accounts 77,574,803 77,574,803 (266,376,310) (266,376,310) Proceeds from borrowings/issue of bonds 2,846,354,700 1,810,000,000 Repayment of borrowings/redemption of bonds (2,906,031,621) (849,509,881) Payment of lease liabilities (21,315,235) (5,278,903) (20,399,783) (6,614,708) Total change in financial liabilities (*) (3,417,353) 673,714,026 Equity instruments Repurchase of treasury shares (14,943,582) - Proceeds from issue of perpetual hybrid bonds - 741,812,350 Interest paid on perpetual hybrid bonds (37,500,000) (9,426,209) Equity instruments (52,443,582) 732,386,141 Net cash flows from (used in) financing activities (124,390,155) 151,582,454 Net increase (decrease) in cash and cash equivalents 387,485,085 (164,212,279) Cash and cash equivalents at the beginning of the year 1,323,166,285 1,487,378,564 Cash and cash equivalents at the end of the year 1,710,651,370 1,323,166,285 (*) Net of balances recognized through equity and other statement of financial position items (**) These mainly refer to loans granted to subsidiaries. (***) Primarily includes changes in the fair value of commodity derivatives. A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 A2A Separate financial statements 2025 2 Explanatory notes 2.1 General information on A2A S.p.A. A2A S.p.A. is a company incorporated under the laws of the Italian Republic which operates, also through its subsidiaries ("Group"), both in Italy and abroad. In particular, as the "Parent Company", A2A S.p.A. is responsible for the guiding strategy, administration, planning and control, financial management and coordinating the activities of the A2A Group. Therefore, Group companies benefit from administrative, tax, legal, personnel management, procurement and communication services, so as to optimize the resources that are available within the Group and to use the existing known how in a cost-effective way. A2A S.p.A mainly operates in the following sectors: production and sale of electricity from hydroelectric plants located in Lombardy, Calabria and Friuli-Venezia Giulia, as well as management of the Group's portfolio of generation plants; trading of electricity, gas and CO₂ through bilateral contracts or on the markets; provision of administrative, tax, legal, treasury, human resources management, procurement and communication services, in order to optimise the resources available within the Group and to efficiently leverage existing know-how in a cost-effective manner. The Separate Financial Statements of A2A S.p.A. (hereinafter "the Financial Statements") at December 31, 2025 have been prepared: in compliance with Legislative Decree 58/1998 (art. 154-ter) as amended and with the Issuers' Regulations published by Consob; in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board (IASB) and approved by the European Union. IFRS means all the revised International Accounting Standards (IAS) and all the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), formerly known as the Standing Interpretations Committee (SIC). In preparing the Financial Statements, the same standards used at December 31, 2024 were applied, other than the principles and interpretations described in detail in the paragraph below "Changes in International Financial Reporting Standards" adopted for the first time on January 1, 2025. The directors assessed the applicability of the going concern assumption in the preparation of the Financial Statements, concluding that this assumption is appropriate as it was verified that there were no financial, managerial or other indicators that could indicate critical issues regarding the Company's ability to meet its obligations in the foreseeable future and in particular in the next 12 months. A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 The Financial Statements have been prepared using the historical cost method, with the exception of the financial statement items that according to IFRS are recognized at fair value, as indicated in the valuation criteria of the individual items, and non-current assets and disposal groups classified as held for sale that are measured at the lower of carrying amount and fair value net of selling costs. The Financial Statements required the use of estimates by management; the areas characterized by valuations and assumptions of particular significance, together with those with significant effects on the reported situations, are reported in the section "Use of estimates and judgement by management" at the end of this paragraph. The currency used for the presentation of the Financial Statements is the euro, the functional currency of the company; all values are expressed in thousands of euro, unless otherwise indicated. The Financial Statements consist of: Statement of financial position: provides for the distinction of assets and liabilities by maturity, separating between current and non-current; Income statement: presented in scalar form with the individual items analysed by nature. The form chosen, in accordance with the presentation methods of the major sector operators and in line with international practice, is considered the most suitable to represent the company results; Statement of components of the comprehensive income statement: presented in a separate table, it shows the components of the result suspended in equity; Statement of cash flows: prepared using the indirect method, with separate presentation of cash flow from operating activities, investment activities and financing activities. More specifically, the Statement of cash flows is presented on a gross basis and does not include non-monetary transactions. In particular, although the company does not deviate from the provisions of IAS 7 in the classification of items, the following is specified: in addition to cash flows from ordinary operations, cash flows from operating activities include interest on loans granted and obtained, dividends and advances on dividends paid, as well as dividends received from associated companies or joint ventures; investment activities include investments in property, plant and equipment and intangible assets (including any capitalized financial expenses) and related disposals; investments and disposals in assets deriving from contracts with customers relating to agreements for concession services and other minor investments; cash flows from financing activities include cash flows arising from liability management and lease transactions; Statement of changes in equity: in addition to the components of the comprehensive income statement, it also shows the transactions with shareholders; Explanatory notes. A2A Separate financial statements 2025 In section 1.b Financial Statements pursuant to Consob resolution no. 15519 of July, 27 2006 are reported Statement of financial position, Income statement and Statement of Cash flow with the effects of relations with related parties, witch are defined in the paragraph 2.7 "Note on related party transaction". The financial statements presented herein are the same as those used to prepare the Financial Statements at December 31, 2024, with the exception of the following changes that management has adopted to ensure better representation and comparability. With regard to the statement of financial position, the following steps were taken: disaggregate the financial statement line relating to "Intangible assets and goodwill" through two new lines, respectively "Intangible assets" and "Goodwill"; separate current/non-current asset/liability derivatives from the respective other current/non-current assets/liabilities; separate the disbursement expected within the following 12 months from the "Provisions for risks and charges", classifying it as a current liability. With regard to the Income Statement, the following steps were taken: separate the item "depreciation, amortization, provisions and impairment losses" by nature: "Amortization, depreciation and impairment losses of non-current assets", "Provision for risks on Impairment losses on trade receivables", "Other provisions for risks"; As regards the Statement of cash flows, the following steps were taken: saparate the line "net interest paid" into "interest received" and "interest paid"; include the information relating to related parties. The Company also renamed certain lines in the financial statements with respect to the statements published as at December 31, 2024, reclassified inventories of environmental securities relating to the industrial portfolio from "Intangible assets" to "Inventories", and reclassified the portion within the financial year "Provisions for risks and charges". The changes relating to the values at December 31, 2024 are not considered relevant for the economic and equity size of the Company. In this file, use has been made of some Alternative Performance Indicators that are different from the financial indicators expressly provided for by the IFRS international accounting standards adopted by the Company; for details of these indicators, please see the specific paragraph Alternative Performance Indicators in the Report on Operations. A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 2.2 Changes in International Financial Reporting Standards Accounting standards, amendments and interpretations applicable by the company as of January 1, 2025 Effective from January 1, 2025, the amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates," issued by the IASB on August 15, 2023, came into force to regulate the procedures to be followed in the event of a lack of exchangeability between currencies. The amendment introduces requirements to determine when a currency is convertible into another currency and when it is not and requires an entity to estimate the spot exchange rate when it determines that a currency is not convertible into another currency. The amendment had no impact on the financial statements as at December 31, 2025. Accounting standards, amendments and interpretations endorsed by the European Union but not yet mandatorily applicable and not early adopted by the Company Amendments to the classification and measurement of financial instruments (Amendments to IFRS 9 and IFRS 7) On May 27, 2025, the amendments to IFRS 9 and IFRS 7 regarding "Amendments to the Classification and Measurement of Financial Instruments," issued in 2024, were endorsed, with entry into force scheduled for January 1, 2026. These amendments clarify the classification of financial assets with environmental, social and governance (ESG) features and similar ones, as well as the settlement of financial liabilities through electronic payment systems. They also introduce disclosure requirements aimed at enhancing transparency for investors in relation to investments in equity instruments measurement at fair value through other comprehensive income statement and in financial instruments with contingent features, such as features linked to ESG goals. The amendments to IFRS 9 clarify the circumstances under which a financial asset or liability is recognised and derecognised. According to the amendments, a company generally derecognizes its financial liability on the settlement date. Normally, this is the date when the payment is completed. The amendments also introduce an exception, permitting the company to derecognize its financial liability prior to the settlement date, which is the date when the payment is initiated and cannot be cancelled. The exception is available when the company uses an electronic payment system that satisfies all of the following criteria: no practical way to withdraw, stop, or cancel the payment instruction; no practical means to access the money needed for the settlement as a result of the payment instruction; the settlement risk connected with the electronic payment system is insignificant. A2A Separate financial statements 2025 The amendments also provide more precise criteria for determining when a financial asset can be classified as "measured at amortized cost" or "at fair value." This helps companies to treat complex instruments consistently, such as loans with prepayment options or variable clauses (e.g. instruments linked to ESG indices or non-standard variable rates). The amendments further clarify how to measure such instruments, with the aim of ensuring that the measurement better reflects the actual economic risk. The amendment to IFRS 7 provides for an additional disclosure for financial assets and liabilities with contractual terms referencing a potential event, including those associated with ESG factors, as well as for equity instruments classified at fair value through other comprehensive income statement elements. The Company is currently assessing the impacts of these amendments, but no significant effects are expected. Nature-dependent electricity contracts ( Amendments to IFRS 9 and IFRS 7 ) On June 30, 2025, the amendments to IFRS 9 and IFRS 7 regarding nature-dependent electricity purchase contracts (power purchase agreements) were endorsed. These amendments will enter into force on January 1, 2026. The amendments clarify the requirements for applying the "own-use exemption," define the rules for using these agreements as hedging instruments in a hedge accounting relationship, and introduce disclosure obligations to enable investors to understand the effects of such agreements on the company financial performance and future cash flows. The Company is currently assessing the impacts of these amendments, but no significant effects are expected. Annual Improvements to IFRS Accounting Standards-Volume 11 On July 9, 2025, the annual improvements "Annual Improvements to IFRS Accounting Standards - Volume 11" were endorsed as part of the ordinary improvement process, with entry into force scheduled for January 1, 2026. The annual improvements aim to streamline and clarify existing standards by resolving any inconsistencies identified in the IFRS Accounting Standards or by providing terminological clarifications. A2A Separate financial statements 2025 Overview of 1.a 1.b 2 3 4 5 performance, Separate financial Financial Statements Explanatory Attachments Independent Report of the financial conditions statements pursuant to Consob notes Auditors' Report Board of Auditors and net debt resolution no. 15519 of July, 27 2006 IFRS 18 Presentation and disclosure in financial statements On February 13, 2026, IFRS 18, issued by the IASB in April 2024, was endorsed, replacing IAS 1 'Presentation of Financial Statements. IFRS 18 introduces new requirements for the presentation of the income statement, including specific totals and subtotals. In addition, entities will have to classify all costs and revenues within the income statement into five categories: operating, investing, financing, income taxes and discontinued operations, where the first three categories are new. The standard also requires disclosure on the basis of the new definition of management-defined performance measures (MPM), subtotals of costs and revenues, and includes new provisions for the aggregation and disaggregation of financial information on the basis of the identified roles of the "primary" financial statements (PFS) and the notes. In addition, amendments have been made to IAS 7 Cash Flow Statement, which include the change in the starting point for determining operating cash flows on the basis of the indirect method; from profit or loss to operating profit or loss and the removal of the option to classify cash flows from dividends and interest. In addition, consequential changes were made to several other accounting standards. IFRS 18, and the amendments to the other standards, are effective for financial years beginning on or after January 1, 2027. However, early application is permitted unless disclosed. IFRS 18 will apply retrospectively. The Group is currently working, also with the support of external professionals, to identify the impacts that the changes will have on its financial statements and notes to the financial statements, on information systems and on agreements and contracts (e.g. employee benefits and financing contracts/covenants). Accounting standards, amendments and interpretations not yet endorsed by the European Union and applicable from subsequent financial years Document title Date of entry into force of the IASB document New IFRS accounting standards IFRS 19 Subsidiaries without public accountability: disclosures January 1, 2027 Translation to a hyperinflationary presentation currency (amendments to IAS 21) January 1, 2027 The analyses of the potential impacts arising from the initial application of the above documents are still in progress. A2A Separate financial statements 2025 2.3 Basis of preparation Translation of foreign currency items Items denominated in currencies other than the functional currency, whether monetary (cash and cash equivalents, assets and liabilities that will be collected or paid in fixed or determinable amounts of money, etc.) or non-monetary (advances to suppliers of goods and/or services, goodwill, intangible assets, etc.), are initially recognized at the exchange rate in effect on the date the transaction is executed. Subsequently, monetary items are converted into the functional currency on the basis of the exchange rate on the reporting date, and differences arising from the conversion are recorded in the income statement. Non-monetary items are maintained at the conversion rate of the transaction. Property, plant and equipment Assets for business use are recorded under "Property, plant and equipment" while non-business assets are classified as "Investment properties" if necessary. Property, plant and equipment are measured at cost, including any additional charges directly attributable to bringing the asset into an operating condition (e.g. transport, customs duty, installation and testing costs, notary and land registry fees and any non-deductible VAT), increased when material and where there are obligations by the present value of the estimated cost of restoring the location from an environmental point of view or dismantling the asset. Borrowing costs, where directly attributable to the purchase or construction of an asset, are capitalized as part of the cost of the asset if the type of asset so warrants. If important components of tangible assets have different useful lives, they are accounted for separately using the "component approach", assigning to each component its own useful life for the purpose of calculating depreciation (the component approach). Land, whether occupied by residential or industrial buildings or devoid of construction, is not depreciated as it has an unlimited useful life, except for land used in production activities that is subject to deterioration over time (e.g. quarries). Ordinary maintenance costs are fully expensed to the income statement in the year they are incurred. Costs for maintenance carried out at regular intervals are attributed to the assets to which they refer and are depreciated over the specific residual possibility of use of such. Property, plant and equipment are stated net of accumulated depreciation and any impairment losses. Depreciation is charged from the year in which the individual asset enters service on a straight-line basis over the estimated useful life of the asset for the business. The estimated realizable value which is deemed to be recoverable at the end of an asset's useful life is not depreciated. The useful life of each asset is reviewed annually and any changes, if needed, are made with a view to showing the correct value of the asset. Depreciation of property, plant, and equipment was calculated based on economic and technical useful lives, considered representative of their residual useful life. A2A Separate financial statements 2025

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