Solid growth in EBITDA and increased organic Capex to support the ecological transition
The increase in installed Renewable Capacity and Green Energy
- Ordinary EBITDA at 1.5 billion euro increased by 7% year-on-year.
- Organic Capex increased by 15% year-on-year to 1.24 billion euro (1.07 billion euro in
the previous year). - Net Financial Position at 4.26 billion euro. NFP / EBITDA at 2.8x (2.9x in 2021)
- Installed renewable capacity of 2.5GW, up 12% year-on-year
- Green energy sold amounting to 6.6 TWh, +32% compared to 2021 (5TWh in 2021)
- Growth in the use of Sustainable Finance instruments continued: thanks to the
transactions concluded in 2022, in a complex market context, the share of sustainable
debt in the Group's total gross debt as of December 31 reached 58% (44% as of
December 31, 2021).
Milan, February 23, 2023 – A2A S.p.A.’s Board of Directors met today and reviewed the preliminary consolidated results for 2022 under the leadership of Chairman Marco Patuano.
"In a complex year like the one that has just passed, characterized by economic uncertainty and international tensions, the preliminary figures confirm the Group's solidity and ability to continue to grow" - comments CEO Renato Mazzoncini. "Our business model, based on the diversification of activities, has guaranteed the stability necessary to face market turbulence, without losing the support and closeness to our customers. We continued to contribute to sustainable growth and the country's energy independence with 1.24 billion euro in investments, up from the previous year, which had already set an all-time record for our company. The year 2023 will see us still committed to implementing the objectives identified in our Business Plan, through the construction of strategic infrastructure for the development of renewables, material recovery and in the strengthening of networks".
Ebitda (Gross Operating Margin) stands at 1.5 billion euro (1.43 billion euro in 2021, +5%). Ordinary Ebitda, i.e. net of extraordinary items recorded in the period, also amounted to 1.5 billion euro, up by 7% compared to the 2021 financial year (1.4 billion euro). Despite the geopolitical tensions and strong turbulence that characterized the energy markets in the year under review, the A2A Group achieved growing margins by benefiting from the diversification of its activities: the positive results of the Generation & Trading Business Unit and the Waste Business Unit more than offset the contraction in margins recorded in the other business segments.
In 2022, A2A continued its industrial growth path, in line with the long-term strategy focused on energy transition and circular economy, further increasing investments compared to the already high investments of 2021 and concluding important growth transactions by external lines.
Organic Capex amounted to 1.24 billion euro, a 15% increase over 2021: the increase was related to development investments, particularly those aimed at contributing to the flexibility and adequacy of electricity generation plants, the growth of wind and photovoltaic plants, the expansion of electricity distribution networks, and the recovery of energy and materials.
M&A transactions totalling 0.46 billion euro (0.72 billion in 2021) were concluded, focused on the energy transition sector. The Group accelerated the growth of RES plants with the acquisition of two wind and photovoltaic portfolios located in Italy and Spain (3New and 4 New) and Volta Green Energy, a platform dedicated to the construction, development and management of renewable energy plants. It also acquired SEA Energia, a company that produces electrical and thermal energy, with the aim of fostering the decarbonisation process of the Milan Linate and Milan Malpensa airports.
Net of proceeds from the sale of non-strategic assets in the gas distribution business, the value of M&A amounted to 0.33 billion euro.
The Net Financial Position amounts to 4.26 billion euro (4.11 billion euro as of December 31, 2021). Excluding changes in the scope of consolidation during the year under review, the NFP stood at 3.9 billion euro: this reduction is due to the effective optimization of net working capital.
The NFP/EBITDA ratio is 2.8x, down compared to the previous year (2.9x).
*
During the year, A2A successfully placed three bonds in ESG format for a total of 1.75 billion euro (one Sustainability-Linked Bond for 500 million euro and two Green Bonds for 600 and 650 million euro to support the realization of the Group's investment projects). Following these transactions, the proportion of sustainable debt to the Group's total gross debt as of December 31, 2022 reached 58% (44% as at December 31, 2021).
In addition, A2A subscribed a new 410 million euro Sustainability-Linked revolving credit line linked to the achievement of three objectives in the Social and Governance spheres, and a Civil and General Liability insurance solution linked to the achievement of five sustainability objectives concerning occupational health and safety.
The Board of Directors will review the A2A Group’s consolidated financial statements draft during their meeting on March 16, 2023, according to the financial calendar announced previously.
The preliminary figures reported above do not include tax effects, which are currently being calculated, and are still subject to audit by the audit company.
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Alternative Indicators of Performance (AIP)
Certain alternative performance indicators (AIP) not envisaged by the International Financial Reporting Standards endorsed by the European Union (IFRS-EU) are presented in the press release to give a better view of the A2A Group’s performance. In accordance with the recommendations in the ESMA Guidelines published in October 2015 and May 2021, the measures are described below, with an explanation of their content and calculation base:
- Ebitda (Gross Operating Margin): an alternative indicator of operating performance, calculated as the sum of "Net operating income" plus "Depreciation, amortization, provisions and write-downs".
- Ordinary EBITDA (Ordinary Gross Operating Margin): an alternative performance indicator calculated as the gross operating margin described above by excluding nonrecurring transactions or operations, both in the assets and liabilities, (e.g. adjustments relating to previous years, extraordinary redundancy plans, etc.);
- Net financial position (NFP): an indicator of financial structure. This indicator is determined as the result of current and non-current financial payables, the non-current portion of trade payables and other non-interest-bearing payables that have a significant implicit financing component (payables due over 12 months); net of cash and cash equivalents and current and non-current financial assets (financial receivables and securities other than equity investments);
- Capex: alternative indicator of performance used by the A2A Group as a financial target within the scope of intra-Group presentations (business plans) and external documents (presentations to financial analysts and investors). It is a useful measure of the resources employed to maintain and develop the A2A Group’s investments.
- M&A: alternative indicator of performance used by the A2A Group to represent the overall impact at capital level of growth operations by external line.
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The executive responsible for drawing up A2A S.p.A.’s corporate accounting documents, Luca Moroni, states – in accordance with article 154-bis, sub-section 2 of the Financial Act (Legislative Decree 58/1998) – that the accounting information contained in this document corresponds to the documentary evidence, books and accounting records.
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Contacts:
Giuseppe Mariano
Media Relations, Social Networking and Web Manager
Silvia Merlo - Silvia Onni
Press Office
ufficiostampa@a2a.eu
Tel. [+39] 02 7720.4583
Marco Porro
Investor Relations Manager
Tel. [+39] 02 7720.3974, ir@a2a
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