A2A, Annual report 2021: growth of all economic and financial indicators confirmed. Ecological transition effort continues

• Net profit of 504 million euro, +38% compared to last year (364 million euro in 2020)
• Dividend proposed to the shareholders' meeting of 0.0904 euro per share (of which 0.0824 as ordinary dividend and 0.0080 as extraordinary dividend)
• Ebitda at 1,428 million euro up 228 million euro, +19% compared to 2020 (1,200 million euro) thanks to significant organic growth and M&A operations
• Revenues at 11,549 million euro: +69% compared to the 2020 financial year
• Capex and M&A amounted to 1,790 million euro, roughly double the previous year's figure.
• Net Financial Position of 4,113 million euro, up 641 million euro compared to December 31, 2020. Net of changes in the scope of consolidation and the impact of the new ESMA guidelines (totalling 747 million euro), the NFP improved by 106 million euro to 3,366 million euro.
• 313 GWh production from new photovoltaic and wind energy renewables (129 GWh in 2020)

 

Sustainability

• 10,732 million euro economic value distributed to stakeholders (+75% compared to 2020)
• +28% green energy sold (5TWh in 2021 compared to 3.9TWh in 2020)
• 44,000 students and teachers involved in environmental education and sustainability projects at national and local level (+78% compared to 2020)
• -5% compared to 2020 weighted accident index
• best sustainability report in the "Energy&Utilities" category, first place in the "ESG Reporting Awards 2021" by ESG Investing Global Markets Media Ltd and second place in the "Best Climate-Related Reporting" category for climate change reporting
• Entry into the MIB ESG Index

 

The Group's commitment to sustainable finance continues: A2A closed a record 2021 in terms of sustainable finance transactions (Sustainability-Linked Bond for 500 million euro, Green Bond for 500 million euro and RCF Sustainability-Linked for 500 million euro), bringing the percentage of sustainable debt over total debt to 44%, above expectations. In addition, in a complex macroeconomic context, A2A successfully issued its second Sustainability-Linked Bond for 500 million euro on 9 March, linked to the achievement of a 2024 sustainability target for installed capacity from renewable sources.

 

Milan, 17 March 2022 - The Board of Directors of A2A S.p.A. met today and, under the chairmanship of Marco Patuano, examined and approved the drafts of the separate financial statements and the consolidated annual financial report as at 31 December 2021.

"An unprecedented volatility in energy prices earmarked 2021 and it is still presently unsettling the market - comments Renato Mazzoncini, CEO - The A2A Group has confirmed its solidity in facing changes in the scenario, growing in all economic and financial indicators. We have achieved for the first time an ordinary profit of 400 million euro, not so much because of the higher profitability of renewables, but due to contingent factors such as the excellent performance of the ancillary services market. These conditions made it possible a proposal of total dividend of 0.0904 euro per share, equal to 283 million euro, adding, on top of the planned growth, an extraordinary dividend component of 0.008 euro per share (equal to 25 million euro)".

The results recorded in 2021 showed significant and solid economic and industrial growth thanks to the contribution of all the Group's Business Units and to the M&A transactions finalized.

In 2021 the A2A Group operated in a context characterised by an increase in energy consumption driven by the post-pandemic economic recovery and by strong turbulence on the commodities market, with the upward trend in energy prices becoming more pronounced, reaching record values, in the final months of the year.

In particular, Italy's net electricity demand in the year under review was 318,075 GWh, an increase of 5.6% compared to 2020.

Moreover, in 2021, the average PUN (Single National Price) for the year more than tripled (+221.3%) compared to the average value for 2020, standing at €125.0/MWh and peaking in December at 281.2 €/MWh. The increase in the PUN price reflects a similar escalation in gas prices at the PSV (Virtual Trading Point) and CO2. In fact, the average cost of gas at the PSV in the year under review was 45.8 €/MWh, up 342.8% compared to the same period last year. CO2 prices stood at an average price of €53.4/mt in 2021 (€24.7/mt in 2020, +116%). This price dynamic contributed significantly to the increase in turnover (+69%). As in 2020 and as early as 2019, A2A has adopted a prudent commodity price hedging policy, aimed at containing risk and volatility in the medium term with hedges of around 90% for fixed-price productions, considerably reducing the effects that a price surge could have had.

However, the Group ensured excellent results in terms of operating margins thanks to the excellent performance of all Business Units and the contribution of the newly acquired companies.

In 2021, A2A also recorded significant industrial growth, in line with the company's strategy based on energy transition and circular economy thanks to:

• Record Capex (1,074 million euro), up 46% on the previous year. In particular, a strong boost was given to development investments (+70% compared to 2020) aimed at recovering energy and materials, upgrading distribution networks, water and sewage networks, purification plants,measures to contribute to the adequacy and safety of the national electricity network and the digitalisation of the Group.
• M&A transactions for a total of 716 million euro (145 million euro in 2020) relating to the bioenergy field (acquisition of Agripower, a company managing and developing biogas power generation plants), industrial waste treatment (acquisition of TecnoA, a leading company in southern Italy in this sector) and the increase in installed power from renewable sources (acquisition of 17 photovoltaic plants from Octopus for a total installed capacity of 173MW).