Update of the A2A 2021-2030 Strategic Plan

22 November 2022 - 23:11

Industrial, economic and environmental objectives of the first 2021-2030 ten-year Plan confirmed.
Diversified and integrated businesses ensure the financial solidity to the Group.
A2A's contribution to the country's decarbonization continues thanks to a differentiated portfolio of renewable plants, bioenergy and circular economy.

16 billion euros in investments over 10 years (3.5 billion euros already invested in 2021-2022) of which: ~5 billion euros for the Circular Economy, ~11 billion euros for the Energy Transition
Over 80% of projects planned by 2026 already completed and in progress
~85% of investments in line with the UN Sustainable Development Goals (SDGs)
~65% of investments in line with EU Taxonomy
EBITDA of ~2.6 billion euros at the end of the Plan, with an average yearly growth rate of 7% within the plan period
~13 TWh of green energy and energy recovery produced at 2030
Over 40% of margins at 2030 generated from low-volatility assets
FFO/Net Debt above 23% already from 2025

"During the first two years, the Group has demonstrated its ability to implement the Plan presented in January 2021. We have been able to achieve planned objectives in advance, by building infrastructures and industrial plants, through internal growth and seizing acquisition opportunities" - comments Renato Mazzoncini, CEO of A2A - "2022 has been characterized by a complex geopolitical and economic situation and a volatile energy scenario: in the light of this context, we have decided to update our Plan to continue guaranteeing the Group's solidity and face the upcoming challenges. Investments have been updated, prioritizing organic growth in the domestic market and confirming Circular Economy and Energy Transition as pillars of A2A's strategy."

Milan, 22 nd November 2022 – The Board of Directors of A2A, chaired by Marco Patuano, examined and approved the update of the 2021-2030 Strategic Plan, which renews the Group's commitment to decarbonization, in advance of EU targets.

The 2021-2030 Plan update confirms Circular Economy and Energy Transition as pillars of A2A's strategy, to which all the Business Units (Energy, Waste and Smart Infrastructures¹) contribute.Unchanged investment objectives of the first ten-year Plan presented in January 2021, with a remodulation focused on the development of distinctive businesses in the domestic market mainly through organic growth.

Results achieved and beyond expectations in the first two years of the Plan

In the first two years of the ten-year Plan, investments in infrastructures nationwide reached 3.5 billion euros.

As part of the Circular Economy, the Group finalized strategic investments in plants for the treatment of organic waste and agro-food by-products (Lacchiarella and Cavaglià with a production capacity of about 13 Mcm of biomethane), for the treatment of sludge (Corteolona with a treatment capacity of 55 kt), for water purification (Gavardo, Alfianello and Val Trompia with a treatment capacity of around 130 thousand inhabitants equivalent) and in the conversion of the Biofor plant (capacity of about 5 Mcm of biomethane). In the M&A area, two significant transactions were finalized. In the industrial waste sector, the acquisition of TecnoA, a leading company in central and southern Italy, whose plant hub has a treatment capacity of about 300 kt/year of waste destined to energy recovery. In heat recovery, the acquisition of Sea Energia, a company that supplies electric and thermal energy to the Milan Linate and Milan Malpensa airports, with the aim of fostering their decarbonization process.

To support the Energy Transition, in the first phase of the Plan's implementation, the Group acquired green generation plants with a nominal power of 436 MW through two significant acquisitions: the Octopus portfolio, exclusively photovoltaic of 173 MW, and the Ardian wind and photovoltaic portfolios of 263 MW. These transactions have enabled the Group to become the fourth-ranked industrial player in the renewable energy sector in Italy.

During 2022, an additional RES development platform was acquired, with a pipeline of projects amounting to 800 MW, including the 30 MW Matarocco wind power plant, under construction.

In order to develop new flexible energy to support renewables, the Chivasso and Cassano power plants were upgraded and two primary substations were built to ensure the resilience of the electricity grid in the city of Milan (Rozzano and San Cristoforo).

Finally, the acquisition of retail customers from digital channels exceeded expectations with over 180 thousand new customers in the first two years of the Plan.