Funding needs: 7.3 €B between 2023 and 2030
Use of the capital markets to refinance existing and incremental debt, exploiting the most suitable instruments to provide diversification of sources and investors
- Value from assets
- Sustainable growth
- Engagement con gli Stakeholder
Value from assets
The diversification of our activities enables us to manage the value chain of energy, the environment and networks
Le sinergie industriali tra i nostri business permettono la creazione di modelli di transizione ecologica.
La qualità e il rinnovamento dei nostri asset rende concreta la generazione di valore per gli stakeholder e i territori.
Portafoglio delle attività, ottimo posizionamento per massa critica e qualità degli asset.
Generation
~2.5 GW of RES installed capacity
6,551MW
Thermoelectric capacity
1,945MW
Hydroelectric capacity
316MW
Capacità fotovoltaica
243MW
Wind Capacity
Market
Leader for quality and customer satisfaction
1,491k
Electricity Customers
1,573k
Gas Customers
National operator in energy and material recovery
3.96milions
Inhabitants served
1,785Kton
Waste collected
3,368Kton
Waste disposed of
2.121GWh
WTE and other plants electricity production
1.487GWht
WTE and other plants heat production
Networks
Incumbent in the key areas
11.2TWh
Electricity distributed
2.7Bm3
Gas distributed
75Mm3
Water distributed
827M€
Electricity RAB
1,482M€
Gas RAB
511M€
Water Cycle Fixed Assets
Heat
1st domestic operator
2.9TWh
Heat volumes sales
0.4TWh
Electricity production from cogeneration plants
We are increasing our corporate resilience, reducing the level of risk
Results
In 2022 the A2A Group achieved solid economic and financial results, demonstrating its resilience in dealing with the complexities of the year arising not only from the volatility of the energy markets and the resulting inflation pressures, but also from the severe drought that caused a drastic drop in hydroelectric production.
Sustainable growth
We are integrating ESG issues into the development of our businesses in order to achieve ambitious growth targets and sustainability goals
Our focus on ESG issues and, in particular, on the ecological transition, embraces all our activities and provides the Business Units with solid, clear guidelines to help in their decision-making and investment plans.
Highlights
A2A will achieve carbon neutrality on direct and indirect emissions by 2040
226gCO2/kWh
Group Emission Factor @2030
5GW
RES Installed Capacity @2030
7Mt
Net waste treated @2030
85%
2021-30 CAPEX 21 related to UN SDGs
16€B
10-years cumulative Capex
2.6€B
EBITDA @ 2030
0.7€B
Ordinary Net Income @2030
26%
FFO / Net Debt @2030
The new A2A strategy centres on two mainstays of sustainability
Targets
Robust growth over the entire plan period ensuring high returns and great financial soundness
| 2021 | 2022 | 2026 | 2030 | |
|---|---|---|---|---|
| Reported EBITDA (€B) (CAGR ‘21 – ’30: 7%) |
1.43 | 1.51 | 2.1 | 2.6 |
| Ordinary Net Income (€B) (CAGR ‘21 – ’30: 7%) |
0.37 | 0.38 | 0.6 | 0.7 |
| Dividend per share (€c) | 8.24* | 8.49* | CAGR 3% | |
* Dividend per share excluding the non-recurring component
Ordinary EBITDA ENERGY BU | B€
Ordinary EBITDA WASTE BU | B€
Ordinary EBITDA SMART INFRASTRUCTURES BU | B€
Our financial strategy
We have drawn up an investment plan for our transformation, maintaining solid credit indicators with a commitment to maintain current rating
Average expected cost of debt: 3% at 2026
Expected increase in the average cost of debt in the next years, due to the interest rate scenario, mitigated by our proactive funding management
Average debt duration: >5 years between 2023 and 2030
Stability in the average maturity of the debt thanks to our prudent liability management
Sustainable Finance: >75% of ESG Debt on total at 2026
Investments aligned with the UN SDGs and EU taxonomy allow for new issues of green / sustainability-linked bonds, as occurred in 2022
FFO / NET DEBT | %
2021-30
Outlook 2023
The first nine months of 2023 saw an attenuation of the strong tensions in the energy markets that had characterised 2022, with wholesale electricity and gas prices falling significantly: the PUN (Single National Price) decreased by 60.2% (from 323 euro/MWh in 9M 2022 to 129 euro/MWh in the corresponding period of 2023) and the average cost of gas at the PSV by 67.2% (from 130.7 euro/MWh to 42.8 euro/MWh).
In a context characterised by downward dynamics in energy prices, the A2A Group has adopted effective hedging strategies and, thanks to the optimisation of the integrated production portfolio and profitable commercial development actions, has obtained significant increases in operating margins.
The A2A Group has invested around 800 million euro in new solar and wind power plants, network upgrades, and material and energy recovery. A2A wind and photovoltaic production has increased by 27%, and through power purchase agreements (PPA) with clients (Noi2) and producers, the Group can provide an increasing share of green energy, consolidating its role as a key player supporting the Country’s ecological transition.
The A2A Group constantly monitors the evolution of the context, which remains characterised by high economic and geopolitical uncertainty and, as done in other situations of volatility, promptly identifies possible mitigating actions, aimed at greater protection of the economic and financial position.
In the first nine months of 2023, A2A achieved excellent economic-financial results, thanks to the excellent performance of the Generation & Trading and Market Business Units, which were able to benefit from a progressive normalization of the energy context in which they operate.
The significant improvement in the economic and financial indicators has allowed us to revise upwards the Group's guidance 2023. It is expected that the Group will achieve:
- an EBITDA in the range of 1.88 to 1.92 billion euro (from the previous range of 1.74 to 1.78 billion euro)
- a Group Net Ordinary Profit of between 550 and 570 million euro (from the previous range of between 450 and 470 million euro).
To strengthen the Group's liquidity position and support its investment plan, in 2023 A2A successfully placed a new 500-million-euro Green Bond with an 11-year term.
We are proceeding with conviction in the direction outlined in our Business Plan, aimed at fostering the decarbonisation and electrification of consumption: indispensable goals to provide concrete answers to the challenges of ongoing climate change and to help make the energy market more stable and autonomous.
Stakeholder engagement
Constant and proactive commitment with the financial community
Dialogue and engagement with the financial community are of vital importance to our growth.
Dividend Policy
The Strategic Plan 2021-2030 Update, despite the increase in investments, confirms the targets of dividend distribution to shareholders:
- 8.5 euro cents per share on the profit for 2022
- for the following years, a growth of 3% per year is expected.
A2A believes that the issuance of Green Financing Instruments – including Green Bonds and Sustainability-Linked Bonds under EMTN Programme – could contribute to enabling energy transition and circular economy projects (existing or new ones), giving financial backing to them, with a positive impact in terms of sustainability
In May 2021 A2A adopted a new Sustainable Finance Framework that combines Use of Proceeds and Sustainability-linked instruments. The Framework was updated in 2022, in line with the new objectives of the 2021-2030 Strategic Plan.
The Framework gives investors:
- The transparency to better allocate their funds and measure their contribution to sustainability with the green use of proceeds format
- well-defined targets to measure the strong engagement of A2A in ESG management and continuous improvement at corporate level (sustainability-linked format)
Bonds issued
| Outstanding amount (€M) | Annual coupon | Issue date(1) | |
|---|---|---|---|
| Euro Green Bond 2034 | 500 | 4.375% | 03/02/2023 |
| Euro Green Bond 2030 | 650 | 4.500% | 19/09/2022 |
| Euro Green Bond 2026 | 600 | 2.500% | 08/06/2022 |
| Euro Sustainability-Linked Bond 2028 | 500 | 1.500% | 16/03/2022 |
| Euro Green Bond 2033 | 500 | 1.000% | 02/11/2021 |
| Euro Sustainability-Linked Bond 2031 | 500 | 0.625% | 15/07/2021 |
| Euro Bond 2032 | 500 | 0.625% | 28/10/2020 |
| Euro Green Bond 2029 | 400 | 1.000% | 16/07/2019 |
| Euro Bond 2027 | 300 | 1.625% | 19/10/2017 |
| Euro Bond 2025 | 300 | 1.750% | 25/02/2015 |
| Private Placement 2024 | 300 | 1.250% | 16/03/2017 |
| Private Placement 2023 | 300 | 4.000% | 04/12/2013 |
Notes
(1) Date from which interest is paid
For more information about all A2A Bonds, current ratings and the new Sustainable Finance Framework clik here
A2A launched a new web page dedicated to ESG investors, where you may find information on some relevant ESG themes:
- ENVIRONMENT – Circular Economy, Energy Transition
- SOCIAL – Human Capital Development and Diversity, Cyber Security and Data Protection
- GOVERNANCE – Key Governance Reporting, Risk Management
Moreover, the page has been enriched with some significant case studies (The Corporate Venture Capital programme, Banco dell'Energia Onlus, risks on electricity networks and impact on communities) that show A2A commitment towards Sustainability
On these page you can also find other in-depths regarding Sustainable Finance, Innovation, Covid-19 Initiatives and information about engagement
In 2021 has been also published a new ESG Database, an Excel file that includes a set of historical KPIs for each of the three dimensions of Sustainability to support investors and analysts on ESG themes.
Dividend per share
More informations
Useful resources
Services
A2A S.p.A. - P.I. 11957540153