A2A, results as at 30 september 2022

Continuing growth of investment in infrastructures for the energy transition and the circular economy

Business diversification and careful management of the activities guaranteeing the resilience of economic and financial results

Continuing evolution of sustainable finance instruments

• EBITDA at 1,148 million euro, a 20% increase compared to the first nine months of 2021: the reduction in margins recorded in the Market Business Unit, which improved compared to previous quarters, was more than offset by the results of the Generation and Trading and Waste Business Units.
• Net profit at 461 million euro, +17% compared to the first nine months of 2021 (394 million euro).
• Capex amounting to 802 million euro, up 25% compared to the same period of last year, for the development of green energy production plants, for the energy and material recovery from waste, and for the upgrading and streamlining of networks.
• Net Financial Position at 4,911 million euro (4,113 million euro at 31 December 2021). Net of changes in the scope of consolidation for the period, of 472 million euro, the NFP increased by 326 million euro, after investments of 802 million euro, dividend payments of 283 million euro and proceeds from the sale of certain real estate assets of 221 million euro.

Energy Transition

• Acquisition of SEA Energia, a company that produces electricity and heat, with the aim of fostering the decarbonisation process of the Milan Linate and Milan Malpensa airports.

Sustainability

• 213 GWh of green energy, produced from photovoltaic and wind sources in the first nine months of 2022 (+81% compared to the same period of 2021)
• 5.3 TWh of green energy sold in the first nine months of 2022 (+33% compared to the same period in 2021)

The Group's commitment to sustainable finance continues: during the quarter, A2A resorted to the capital market for the third time in 2022 with a view to pre-funding, successfully placing a bond in Green Bond format for 650 million euro (bringing annual funding to 1 billion 750 million euro, all in ESG format). Following these transactions, the proportion of sustainable debt to the Group's total gross debt as at 30 September 2022 reached 60% (38% as at 30 September 2021).

A2A S.p.A. Board of Directors has examined and approved the quarterly Financial Information as at 30 September 2022

Milan, 10 November 2022 – At today’s meeting of the Board of Directors of A2A S.p.A., chaired by Marco Patuano, the Board examined and approved the quarterly financial information as at 30 September 2022. "In the first nine months of 2022, the Group confirmed its solid performance in coping with the impacts of the energy crisis that began at the end of last year, which was also impacted by lower hydroelectric production due to the drought. In a phase characterised by the uncertain dynamics of the energy markets and by high volatility of commodity prices, A2A has responsibly managed its activities by making the most of the diversification of its business" - comments Renato Mazzoncini, A2A's Chief Executive Officer - "The complex moment we are going through and the heavy repercussions on families and businesses are forcing Italy to implement concrete actions to increase their level of energy autonomy. In this context, the Group has continued to make its contribution with investments, up by 25% over the period, in infrastructure in key sectors to foster the country's ecological transition process.”

The Group's operations proved resilient in a complicated geopolitical scenario. The exceptionally low hydraulicity levels of the period resulted in lower electricity production from hydroelectric plants, which was compensated for by making the most of the diversification of sources, a specific characteristic of the Group.

The dynamics of the energy markets, which saw an almost fourfold increase in the Base Load PUN (Single National Price) (322.9€/MWh; +275%) and a more than fourfold increase in the average cost of gas at the PSV (130.7€/MWh, +335%) compared to the same period of the previous year, were appropriately managed by monitoring the risks arising from the volatility of commodity prices and the consequent financial and credit exposure.

Indeed, A2A has adopted a prudent policy of stabilising margins by hedging electricity production at a fixed price and bringing forward supplies with a view to hedging sales.

In this context, A2A Energia's Mass Market customers on the free market, benefited in the first nine months of 2022 from a saving compared to the rates of the protected market of 39% for electricity and 40% for natural gas. For electricity and gas utilities, instalments were granted, in line with Group policy, 5 times more than in the same period of the previous year and 8 times more than in the pre-pandemic period. On the district heating front, too, mitigation actions were implemented on prices through extraordinary interventions that ensured significant savings for customers.

 

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