Slides
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0 Investor Presentation ‘‘ EURONE XT SUSTAINABILITY WEEK’’ - Vir tual BORSA ITALIANA 10 SEPTEMBER 2025 People for sustainable infrastructure
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1 Agenda Evolving context 28: Green Diligent Growth Targets 2028 2023-28 Projections Closing remarks 2024 Results Acea: Infrastructural operator with low leverage People for sustainable infrastructure 1H 2025 Results
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2 Acea: Infrastructural operator with low leverage People for sustainable infrastructure
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3 ACEA: INFRASTRUCTURAL OPERATOR WITH LOW LEVERAGE ENVIRONMENT ELECTRICITY WATER Mln people served in Italy (20mln including foreign countries)10 Mln tons of waste treated, with 25 plants in 8 regions1.7 PRODUCTION MW of installed capacity, including 270 from renewables380 Mln PODs in Rome, the largest city grid in Europe (over 32,000 km) Mln customers 1.7 1.4 400+ ENGINEERING Engineers with distinctive technical skills Source: Bloomberg 1 Includes, on top of the regulated businesses Water Italy and Grids, the Public Lighting and Environment businesses. 2024 fi gures. | 2. NFP does not include hybrid bonds (Terna 1.85bn€, Snam 1bn€, A2A 0.75bn€, Iren 0.5bn€) 51% 99% Not regulated Regulated Regulated EBITDA1, % of total 2.7x Multi-utilities 3.2xNFP2/ EBITDA 5.1x Infrastructural operators Key numbers, 2024 3 87% 99%
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4 1H 2025 Results
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5 REGULATORY AND MARKET ENVIRONMENT A C E A G R O U P C O N F I R M E D A M O N G T H E L E A D I N G P L AY E R S I N I TA LY F O R W AT E R S E R V I C E Q U A L I T Y 1 H 2 0 2 5 Interest rates3 Commodity prices and Inflation Regulation • Water: Technical and Contractual Quality Incentives for over €36m recognized to ACEA Group by ARERA over 2022-2023, of which €22m to fully consolidated companies1. Tariff approvals for operators by local authorities completed in 2024, those by ARERA are underway (tariff of ATO2, Nuove Acque, Umbra Acque, SII Terni and Rivieracqua approved). WACC equal to 6.1%. • Grids: provisional 2025 tariff published in May 2025, WACC equal to 5.6%, updated the RAB revaluation parameter by adopting the Italian lPCA (1.1% for 2025). • 1H 2025 energy price (SNP) rising to 120€/MWh (+26€/MWh vs 1H 2024) • 1H 2025 gas price (PSV) rising to 43€/MWh (+12€/MWh vs 1H 2024). • June inflation +0.2% on a monthly basis and +1.7% on a trend basis (+1.7% on average from the beginning of the year)2. The following rates were reported, on average, in 1H 2025: • Euribor 6M 2.3% vs 3.8% in 1H 2024; • MidSwap 8Y 2.4% vs 2.7% in 1H 2024. The ECB performed 3 deposit rate cuts of 25 bps each in 1H 2025. 1. ARERA Resolution 277/2025/R/idr of June 24, 2025. | 2. Istat data (NIC) | 3. Elaboration of data from Bloomberg, as of June 30th 2025 5
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6 INDUSTRIAL POSITIONING IN SECTORS WITH GREATEST POTENTIAL FOR DEVELOPMENT AND SUSTAINABILITY 1 H 2 0 2 5 D E L I V E R Y 1H 2025 Q2 Q1 • The construction of the Rome WTE plant has been definitively awarded to the consortium of companies led by ACEA Ambiente (with Suez Italy, Kanadevia Inova, Vianini Lavori and RMB), an important step forward in the waste-to-energy business • T op Employers Italia certification achieved for the fourth consecutive year • Two photovoltaic plants in the province of Viterbo have entered into operation, with a total installed capacity of approximately 12 MW • ACEA's first «Green & Blue Financing Framework» has been published • Moody's upgraded ACEA's outlook from "stable" to “positive” confirming its "Baa2" rating • a.Gas was established, a company with the objective of consolidating and growing in the gas distribution sector • Approved the binding offer received from Eni Plenitude to acquire 100% of the share capital of ACEA Energia S.p.A. (which includes, among other things, a 50% stake in Umbria Energy S.p.A.) • ACEA Group water companies have been awarded incentives for technical quality of the service – 2-year period 2022-2023 - for over €36m, of which ~€22m relating to fully consolidated companies and ~€14m relating to companies consolidated using the equity method 6
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7 GROWING ATTENTION TO ACTIVITIES WITH A STRONG INFRASTRUCTURAL PROFILE APPROVED THE BINDING OFFER RECEIVED FROM ENI PLENITUDE FOR THE ACQUISITION OF 100% OF ACEA ENERGIA S.P.A. SHARE CAPITAL1 UP TO +€100M ADDITIONAL PRICE COMPONENT based on some performance parameters as of 30/6/2027 ✓ Increase in regulated EBITDA contribution up to roughly 95% of consolidated result ✓ Net Debt reduction ✓ Opportunity to reinvest the proceeds for further development of the Group in businesses with a strong infrastructural profile D I S P O S A L O F N O N- C O R E A S S E T S I N L I N E W I T H T H E S T R AT E G Y O U T L I N E D I N T H E B U S I N E S S P L A N CLOSING EXPECTED BY JUNE 2026 1. The Offer is based on the acquisition of 100% of ACEA Energia S.p.A., including the 50% stake in the share capital of Umbria Energy S.p.A., with the exception of the following business lines which in 2024 generated an EBITDA of ~€6m: energy efficiency (with associated tax credits for the "superbonus" equal to ~€159m at the end of 2024), electric mobility, circular economy and energy management and related contracts ENTERPRISE VALUE €460M Normalized net cash position €129M EQUITY VALUE €589M 7
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8 1H 2025 Highlights1 ECONOMIC RESULTS GROWING STRONGLY VS 1H 2024 REGULATED EBITDA REACHED 94% ReportedEBITDAwas €731m, +€76m (+12%) vs 1H 2024 thanks to organic growth and the awarding of incentives for the technical and contractual quality of the integrated water service (~€25m) OrganicEBITDAwas €705m, +€59m (+9%) vs 1H 2024 mainly driven by the growth of Water Italy, Grids and Public Lighting, and Generation businesses. Reported Net Profit was €227m, +€55m (+32%) vs 1H 2024 Organic Net Profit was €204m, +€13m (+7%) vs 1H 2024, mirroring the performance posted at an operating level. Capex net of public subsidies was €573m, growing by €95m (+20%) vs 1H 2024. Including the investments financed by grants, total capex reached €668m (+18%). The Operating free cash flow was negative for €117m in the first half. Results for the period allowed to maintain a solid financial structure, with a pro-forma3 Net Debt/EBITDA of 3.36x Group revenues of €1.5bn of which around €1.3bn related to regulated businesses. Regulated revenues were up 5% vs 1H 2024 mainly due to the investments carried out in the previous years and tariff approvals. EBITDA +9%vs. 1H 2024 excluding one-offs and changes in scope RegulatedEBITDA94%2 Net profit +7% vs. 1H 2024 excludingone-offs CAPEX +20%vs. 1H 2024 net of public grants Net Debt/EBITDA pro-forma3 3.36x Revenues +4%vs. 1H 2024 1. Revenues and EBITDA do not include the results of ACEA Energia perimeter subject to sale to third parties (reclassified under Discontinued Activities). | 2. Including, in addition to the Water Italy and Grids regulated businesses, Public Lighting and Environment businesses .| 3. The pro-forma Net Debt/EBITDA ratio takes into account the effect of the future proceeds from the sale of ACEA Energia and the sale of the High Voltage net work. Further details are available in the next slide. 8
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9 446 506 90 95 4,346 4,771 OVERVIEW OF 1H 2025 RESULTS S T R O N G G R O W T H O F C O N S O L I D AT E D R E S U LT S 192 204 EBITDA 1, €m CAPEX, €m Net profit, €m NET DEBT 4, €m Changes in scope and non-recurring events Grant-funded Increasing focus on regulated businesses, which represent approximately 94% of the Group's EBITDA Pro-forma LTM NET DEBT/EBITDA ratio at 3.36x considering the collection of the proceeds from the sale of ACEA Energia and the High Voltage network 568 668 +95 (+20%) 95% 96% 1H 2024 1H 2025 (20) 22172 +13 (+7%) 1H 2024 1H 2025 Regulated Capex3 9 227 Non-recurring events Dic. 2024 1H 2025 LTM pro-forma Net Debt/EBITDA5 3.36x3.23x 4,944 5,401 598 630 Effect of future cash-in related to the sale of AE and HV Regulated EBITDA2 95% 94% 647 705 269 655 1H 2024 1H 2025 +59 (+9%) 731 REVENUES1 1,404 1,462 1. Revenues and EBITDA do not include the results of ACEA Energia perimeter subject to sale (reclassified under “Discontinued Activities”). Revenues net of results of companies accounted at equity. | 2. Includes, in addition to the Water Italy and Grids regulated businesses, the Public Lighting and Environment businesses. | 3. Percentage net of investments of the ACEA Energia perimeter subject to sale. | 4. Net Debt does not include Umbria Energy’s Net Debt, which is accounted among the “Discontinued operation”. | 5. The proforma Net Debt considers the impact of the future payment to be received for the sale of ACEA Energia to Eni Plenitude (considering the enterprise value included in the binding offer of €460m, the recognised net cash of €128.5m vs a reported net cash of €213.9m as at 31st December 2024, as well as net cash changes occurred in the first semester of 2025 and the net financial position reclassified among the “Discontinued Operation”) and the sale price of the High Voltage grid to Terna for €224m (assuming that ARERA’s premium of €23m is received in 2026); LTM EBITDA excludes ACEA Energia perimeter subject to sale and the High Voltage grid. The reported Net Debt/EBITDA ratio is 3.62 for December 2024 and 3.74 for 1H 2025. 6732 Capex related to the divested business (discontinued operations) Pro-forma Net Debt +457 (+9)
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10 655 647 705 731 Change in scope and non-recurring events B 1H 2025 EBITDA G R O W T H D R I V E N B Y R E G U L AT E D B U S I N E S S E S EBITDA 1H 2024 Change in scope and non-recurring events Recurring 1H 2024 EBITDA Organic growth Recurring 1H 2025 EBITDA EBITDA, €m (9) +9% Change in scope and non-recurring events 1H 2024 (-€9m), of which: ➢ Retroactive application of the tariff update relating to the MTI-4 regulation (+€29m) ➢ Consolidation at equity of AdF (-€29m) ➢ Release of tariff relief fund (-€17m) ➢ Terni WTE shutdown for revamping (+€5m) ➢ Other (+€3m) A 1. Reported EBITDA. Includes, in addition to the Water Italy and Grids regulated businesses, the Public Lighting and Environment businesses | 2. Overseas Water, Engineering & Infrastructure Projects, Corporate and Energy Management (includes ACEA Energia business lines not included in the scope of the sale) A 51 429 731 GENERATION EBITDA 1H 2025WATER ITALY GRIDS AND PUBLIC LIGHTING ENVIRONMENT OTHER BUSINESSES2 37 32 8 58% 31% 5% 4% 2% 225 (94%1) 26 Change in scope and non-recurring events 1H 2025 (+€26m), of which: ➢ Water quality incentives (+€25m) ➢ Other minor items (+€1m) B EBITDA 1H 2025 8 Energy scenario
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11 1H 2025 NET PROFIT NET PROFIT, €m 1H 2024 Net Profit Operational management Financial management 1H 2025 recurring net profit 1H 2025 recurring Net profit 1H 2025 Net profit B Non-recurring events Non-recurring events Non-recurring events 1H 2024 (+€20m), of which: ➢ Retroactive application of the tariff update relating to the MTI-4 regulation (+€20m) ➢ Release of tariff relief fund (-€11m) ➢ Terni WTE shutdown for revamping (+€3m) ➢ Other (+€8m) Non-recurring events 1H 2025 (+€22m), of which: ➢ Water quality incentives (+€14m) ➢ Other (+€8m) B 172 192 204 227 20 18 (6) 22 A A +7% 7 % O R G A N I C N E T P R O F I T G R O W T H V S 1 H 2 0 2 4
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12 1H 2025 CAPEX CAPEX 2, €m 1. Percentage net of investments of ACEA Energia perimeter subject to sale. | 2. Gross of grant-funded capex totalling €95m | 3. Includes, in addition to the Water Italy and Grids regulated businesses, the Public Lighting and Environment businesses | 4. Overseas Water, Engineering & Infrastructure Projects, Corporate and ACEA Energia. GENERATION 1H 2025 CAPEX WATER ITALY GRIDS AND PUBLIC LIGHTING ENVIRONMENT OTHER BUSINESSES4 57% 27% 3% 2% 12% • RECLAMATION AND EXPANSION OF WATER AND SEWER PIPES • EXTRAORDINARY MAINTENANCE OF PLANTS AND NETWORKS • INTERVENTIONS ON PURIFICATION SYSTEMS • UPGRADE OF THE LV GRID • WORK ON PRIMARY AND SECONDARY SUBSTATIONS • INSTALLATION OF 2G METERS • PHOTOVOLTAIC PLANTS • ACEA ENERGIA • CORPORATE: IT PROJECTS • SAN VITTORE WTE • TMB AND RECYCLING (87%)3 381 668 17 11 80 179 F O C U S O N I N V E S T M E N T S I N R E G U L AT E D B U S I N E S S E S , W H I C H R E P R E S E N T96% 1 O F T H E T O TA L
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13 1H 2025 CASH FLOW CASH FLOW, €m 1H 20251 Operating FCF (-€117m) is affected by higher credits linked to the grids equalization mechanism which will be reabsorbed during the year T H E R E S U LT S O F T H E P E R I O D C O N F I R M A S O L I D F I N A N C I A L S T R U C T U R E 1. Does not include cash flows from the ACEA Energia perimeter reclassified to Discontinued Activities . | 2. Cash Flow 2024 including the ACEA Energia perimeter reclassified to discontinued operations in 2025, | 3. It includes both the results of the equity accounted companies (~€23m) and the cash-in of the dividends from these companies (~€4m). 731 390 (117) (433) (457) (63) (202) Cash flow ante M&A e IFRS 16 (17) M&A (7) (51) Total Cash Flow (217) (56) (506) (52) IFRS 16 (63) Dividendi v/soci 729 (134) (18) (3) (72) 503 (478) 25 (61) (45) (187) (268) (14) (1) (283) 2 (83) (38) (16) 21 (113) (28) (141) (2) (7) (15) (165) (3) (6) (174)∆ 1H 2025 VS 1H 2024 1H 20242 (18) EBITDA Change in WC LT regulatory receivables Change in provisions and other Operating CF before Capex Net Capex Operating FCF Financial income/ (charges) TaxesEquity accounted companies3
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14 1H 2025 FINANCIAL STRUCTURE «B a a 2» P o s i t i v e O u t l o o k 89% 2.07% 4.3 YEARS %FIXED RATE DEBT AVERAGE COST AVERAGE MATURITY DEBT FALLING DUE AFTER 2025 FLOATING RATE FIXED RATE Leverage « B B B + » S t a b l e O u t l o o k Rating Profile of main long-term maturities2 €m DEC 24 1H 25 ∆ 1H 25 vs DEC 24 Pro-forma NET DEBT1 4,346 4,771 425 Long-term debt 4,970 4,980 Short-term debt 499 761 Cash and cash equivalents pro- forma (1,123) (970) PRO-FORMA NET DEBT/EBITDA LTM 30/06/2025 PRO-FORMA NET DEBT/EBITDA 31/12/2024 3.36x 3.23x NET DEBT DEC 2024-1H 2025 €m Debt structure (maturity and interest rates as at 30/06/2025) DEBT FALLING DUE BY 2025 300 500 700 500 500 600 700 103 103 54516 42 2026 54 2027 74 2028 128 2029 128 2030 103 2031 2032 beyond Loans Bonds 2025 316 542 754 574 628 728 803 7% 93% 89% 11% 545 103 103 2033 FEBRUARY 2025 Drawing on a €500m ceiling granted by the EIB for areti investments, two new loans were signed for a total of €180m, of which a direct loan of €125m (disbursed in 1Q 2025) and a guaranteed loan of €55m by SACE (not disbursed). FEBRUARY 2025 The Yen 20bn private bond issued in March 2010 was repaid at its natural maturity 1. For the definition of pro-forma data, please refer to slide 7. | 2. Maturities refer to Acea S.p.A. T H E P R O- F O R M A N E T D E B T / E B I T D A R AT I O R E M A I N S < 3 . 4 x , A V E R A G E C O S T O F D E B T 2 . 0 7 % JULY 2025 On 16 July 2025, Acea established a new EMTN (Euro Medium Term Notes) Programme worth €5bn, listed on the electronic bond Market (MOT) of Borsa Italiana and approved by the National Commission for Companies and the Stock Exchange (CONSOB).
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15 2025 GUIDANCE 2025 GUIDANCE EBITDA, €m ✓ EBITDA ✓ CAPEX ✓ PRO -FORMA NET DEBT /EBITDA +6%/+8% vs 2024 restated EBITDA ~€1.6bn of which ~€1.2bn net of subsidies 3.4/3.5x 2025 GUIDANCE G R O W T H D R I V E N B Y R E G U L AT E D B U S I N E S S E S THE 2025 GUIDANCE: ✓ does not include the contribution of AT in the second half of the year at an EBITDA level ✓ includes technical and contractual quality incentives of approximately €25m at an EBITDA level ✓ envisages the equity consolidation of Acquedotto del Fiora for the entire year ✓ confirms gross capex at an all-time high, further growing compared to 2024 ✓ the PRO-FORMA NET DEBT/EBITDA ratio includes the sale of High Voltage with regards to the consideration from T erna and the consideration for the sale of Acea Energia (i.e. €630m2) 1. Restated 2024 EBITDA calculated net of non-recurring items, excluding the contribution of the HV network and consolidating Acquedotto del Fiora with the equity method for the full year in line with what was provided on March 13th on the occasion of the release of the 2025 guidance illustrated to the market in the presentation of the FY 2024 results | 2. Consideration from Terna equal to €224m, assuming the collection of incentives from ARERA, equal to €23m, in 2026 and €406m for Acea Energia - considering the enterprise value included in the binding offer of €460m, the recognised net cash of €128.5m vs a reported net cash of €213.9m as at 31st December 2024, as well as net cash changes occurred in the first semester of 2025 and the net financial position reclassified among the discontinued operation. 15 (164) 12 1,276 EBITDA 2024 restated Acea Energia contribution FY High Voltage contribution 1H EBITDA 2024 restated EBITDA 2025 guidance +6%/+8% 1,428 1
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16 2024 Results
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17 ACCELERATING GROWTH WITH LONG-TERM PROJECTS 2024 DELIVERY AND RELEVANT FACTS 2024 Q3 Q2 Q4 Q1 • Approval of Industrial Plan 2024-2028 • Award of the tender for water and sewer maintenance in the Comas area (North Lima) in Peru • Award of the tender for the management of the integrated water service in the province of Syracuse • Award of the 2nd lot of the tender for the maintenance of the water and sewerage network in the Callao area (North Lima) in Peru • Binding agreement for the sale of Areti's HV electricity grid to Terna • Award of the tender for the management of the integrated water service in the province of Imperia • Acquedotto del Fiora: accounting with equity method from October 1st 2024 • WTE of Rome: presentation of the offer related to the tender published by Rome Capital • Participation in the Mattei Plan control room, with commitment to research and development of infrastructure projects for water resource management in Africa • Fitch Ratings upgrades ACEA outlook from “negative” to “stable”, confirming the “BBB+” rating • Participation in the tender for hydroelectric concessions (Codera Ratti-Dongo and Resio) in Lombardy • Major works. Allocation of an additional €150m in funding (in addition to the €700m already approved in 2022) for the Peschiera Aqueduct • Establishment of Acea Acqua, a new sub-holding for participations in the water sector, in order to promote greater operational efficiency • Launch of electrical flexibility services in Rome through the RomeFlex project • Top Employers Italia Certification achieved for the third consecutive year • WTE of Rome: proposal for award, by the judging commission for the concession, to the group of companies led by ACEA Ambiente • Major works. Construction sites start for interventions on the Marcio Aqueduct and the Ottavia-Trionfale Line 17
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18 2024 Highlights 18 STRONGLY GROWING RESULTS SIGNIFICANT IMPROVEMENT IN THE NET DEBT/EBITDA RATIO COMPARED TO 2023 ReportedEBITDA2 amountingto €1,557m, +12% comparedto 2023. OrganicEBITDA3 amountingto €1,515m, + €152m comparedto 2023 driven by the growth in the regulated businesses, Water Italy, Grids and Public Lighting, and by Commercial business Reportednet profit amountingto €332m, +13% comparedto 2023 Organic net profit of €330m, + €51m comparedto 2023. The growth in EBITDA more than offset the rise in depreciation linked to investments in regulated businesses Capex net of public subsidies amounting to €1,179m, higher than in 2023 (+19%); including the investments financed by grants, the aggregate shows an increase of 26% compared to the previous year. The net investments in regulated businesses represent ~ 89% of the Group total The operating free cash flow was positive for €373m, up compared to 2023 (+€225m). This allowed to maintain a solid financial structure, with a NET DEBT/EBITDA ratio of 3.18x, significantly better than 3.49x in 2023 Group revenues of € 4.3bn of which approximately €2.6bn related to regulated businesses, up by approximately 5% compared to 2023, mainly due to the investments carried out in the previous years and tariff approvals EBITDA +11%vs. 2023 excluding one-offs and changes in scope3 Net profit +18% vs. 2023 excludingone-offs CAPEX +19% vs. 2023 net of public grants OPERATING FCF + €373m Revenues +5%vs. 2023 regulatedbusiness1 1. Including, in addition to the Water Italy and Grids regulated businesses, Public Lighting and Environment businesses. The data does not include the results of companies accounted at equity | 2. Includes the full consolidation of Acquedotto del Fiora in 9M2024 (€47m) and at equity in 4Q2024 (€1m) | 3. Includes the full consolidation of Acquedotto del Fiora over whole 2024. Acquedotto del Fiora’s 2024 financials: EBITDA €68m, net profit €14m and Net Debt €54m
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19 1,363 1,515 28 42 OVERVIEW OF FY 2024 RESULTS A C C E L E R AT I O N O F T H E G R O W T H P AT H O U T L I N E D B Y T H E I N D U S T R I A L P L A N 279 330 EBITDA, €m CAPEX, €m Net profit, €m NET DEBT, €m Non-recurring events and changes in scope1 Grant-funded 1. Details of the change in perimeter and non-recurring events are illustrated in the next slide 2. Reported data | 3. Includes, in addition to the Water Italy and Grids regulated businesses, the Public Lighting and Environment businesses . Regulated EBITDA is expressed net of one-offs and change in perimeter Confirmed focus on regulated businesses, which account for approximately 87% of the Group’s recurring EBITDA and 89% of capex net of subsidies The sizeable increase in Net Profit is mainly driven by the operational performance NET DEBT/EBITDA ratio improving significantly vs end of 2023 28 1,391 1,557 +152 (+11%) 993 1,179 150 2601,143 1,439 +186 (+19%) Regulated3 REVENUES2 86% 87% 88% 89% 4,629 4,270 FY 2023 FY 2024 NET DEBT/ EBITDA 15 2 294 +51 (+18%) 4,847 4,954 +107 (+2%) 3.49x 3.18x FY 2023 FY 2024 FY 2023 FY 2024 Regulated3 42 19 FY 2023 FY 2024 332 Non-recurring events
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20 FY 2024 EBITDA G R O W T H D R I V E N B Y O R G A N I C D E V E L O P M E N T O F R E G U L AT E D B U S I N E S S E S 824 1,557 GENERATION FY 2024 EBITDA WATER ITALY COMMERCIALGRIDS AND PUBLIC LIGHTING ENVIRONMENT OTHER BUSINESSES2 68 41 198 (8) 53% 28% 4% 3% 12% 0% 434 EBITDA, €m (85%1) FY 2023 non-recurring events (€28m), of which mainly: • Water service quality premium (-€28m) A FY 2024 non-recurring events (€42m), of which mainly: • Equity consolidation of AdF (-€20m)4 • Commercial windfall (+€26m) • Water arrears (+€35m) • Release of tariff relief fund (+€17m) • Others (-€16m)5 B 1. Includes, in addition to the Water Italy and Grids regulated businesses, the Public Lighting and Environment businesses | 2. Overseas Water, Engineering & Infrastructure Projects and Corporate | 3. Integral consolidation of Acquedotto del Fiora over the full year | 4. EBITDA (€21m) is deducted and pro-quota of net profit (€1m) is added with reference to 4Q2024 | 5. Including Terni WTE plant shutdown for maintenance 1,391 1,515 1,5571,363 FY 2023 EBITDA Change in scope and non-recurring events Recurring FY 2023 EBITDA Energy scenario Organic growth Recurring FY 2024 EBITDA3 Change in scope and non-recurring events FY 2024 EBITDA 42(29)(28) +11% 181 BA
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21 294 279 330 332 FY 2024 NET PROFIT O P E R AT I O N A L M A N A G E M E N T D R I V E S T H E I N C R E A S E I N N E T P R O F I T NET PROFIT, €m FY 2023 Net profit Operational management Financial management FY 2023 recurring net profit FY 2024 recurring net profit FY 2024 net profit +18% 58 (6) B FY 2023 non-recurring events (€15m), of which: • Water service quality premium (-€18m) • Commercial windfall (-€4m) • Others (+€7m) FY 2023 non-recurring events (€2m), of which: • Commercial windfall (+€18m) • Water arrears (+€23m) • Release of tariff relief fund (+€8m) • Non-recurring provisions (-€16m) • Others (-€31m)1 B DIVIDENDS 2024 DPS2 Payout3 Yield4 0.95€ 61% 5.6% 1. Including impairment, Terni WTE plant shutdown for maintenance and PV revamping | 2. The dividend will be proposed by the Board of Directors to the Shareholders' Meeting, convened for 28th April 2025 in first call and 29th April 2025 in second call | 3. Calculated on consolidated net profit after minorities | 4. Calculated on market price of 12th March 2025 Non-recurring events (15) Non-recurring events 2A A
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22 FY 2024 CAPEX C O N T I N U O U S F O C U S O N T H E D E V E L O P M E N T , E N H A N C E M E N T A N D S T R E N G T H E N I N G O F A S S E T R E S I L I E N C E CAPEX 1, €m 1. Gross of grant-funded capex totalling €260m | 2. Overseas Water, Engineering & Infrastructure Projects and Corporate | 3. Including, in addition to the Water Italy and Grids regulated businesses, the Public Lighting and Environment businesses 316 100 26 67 35 GENERATION FY 2024 CAPEX WATER ITALY COMMERCIALGRIDS AND PUBLIC LIGHTING ENVIRONMENT OTHER BUSINESSES2 62% 22% 7% 2% 5% 2% • RECLAMATION AND EXPANSION OF WATER AND SEWER PIPES • EXTRAORDINARY MAINTENANCE OF PLANTS AND NETWORKS • WORK ON TREATMENT PLANTS • UPGRADE OF THE GRID • WORK ON PRIMARY AND SECONDARY SUBSTATIONS • INSTALLATION OF 2G METERS • CUSTOMER ACQUISITION • REFURBISHMENT OF THERMOELECTRIC POWER PLANTS • CONSTRUCTION OF PHOTOVOLTAIC PLANTS • CORPORATE: IT PROJECTS • WORKS ON 4th LINE OF SAN VITTORE PLANT • REVAMPING OF FUMES LINE AT TERNI PLANT (91%)3 895 1,439
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23 1,391 7 (104) (154) 1,141 (993) 148 (137) (148) (181) (318) (68) (21) (407) 166 207 70 (33) 411 (186) 225 (7) 3 (6) 214 85 2 300 1,557 373 (104) (107) CASH FLOW FY 2024 S T R O N G LY I M P R O V I N G V S F Y 2 0 2 3 CASH FLOW, €M FY 2024 CF before M&A and IFRS 16 T otal Cash flow LT regulatory receivables Change in provisions and other Operating FCF Financial income/ (charges) ∆ FY 2024 VS FY 2023 FY 2023 Taxes DividendsEBITDA M&A and chg. in perimeter IFRS 16Change in WC Capex net of public subsidies1 Operating FCF (€373m) improving thanks to operating performance and working capital optimization (34) (187) (187) (20)(145) 17 214 Operating CF before Capex 1. Includes the value of advances on tenders, equal to approximately €100m (144) (1,179) 1,551
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24 FY 2024 FINANCIAL STRUCTURE N E T D E B T / E B I T D A R AT I O I M P R O V E D C O M P A R E D T O 2 0 2 3 , A V E R A G E C O S T O F D E B T 2 . 1 6 % «B a a 2» P o s i t i v e O u t l o o k1 91% 2.16% 4.5 YEARS %FIXED RATE DEBT AVERAGE COST AVERAGE MATURITY DEBT FALLING DUE AFTER 2025 FLOATING RATE FIXED RATE Leverage « B B B + » S t a b l e O u t l o o k Rating Profile of main long-term maturities2 €m DEC 23 DEC 24 ∆ DEC 24 vs DEC 23 NET DEBT 4,847 4,954 107 Long-term debt 4,771 4,895 Short-term debt 923 759 Cash and cash equivalents (847) (700) NET DEBT/EBITDA 31/12/2024 NET DEBT/EBITDA 31/12/2023 3.18x 3.49x NET DEBT FY 2023-FY 2024 €m Debt structure (maturity and interest rates as at 31/12/2024) DEBT FALLING DUE BY 2025 462 500 700 500 500 600 700 31 42 2026 54 2027 74 2028 122 2029 117 2030 91 2031 2032 beyond Loans Bonds 2025 493 542 754 574 622 717 791 10% 90% 91% 9% 1. Improved Outlook to Positive from Stable on 28 May 2025. | 2. Maturities refer to Acea S.p.A. 472 91 91 2033 APRIL AND JUNE 2024 The EIB has granted – in two tranches – a total financing of €435m to support ACEA ATO2 investments JULY 2024 The €600m bond issued on 15 July 2014 under the EMTN programme has been repaid at its maturity OCTOBER AND NOVEMBER 2024 €500m financing granted by the EIB, with a SACE guarantee, and Cassa Depositi e Prestiti (with EIB funding) to support areti investments. First tranche of EIB (€200m) and CDP financing (€120m) disbursed
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25 2024 KEY RESULTS 25 ➢ Publication of the first Green & Blue Financial Framework in Italy ➢ Approximately 980 GWh of electricity produced, of which over 60% from renewable sources ➢ The volumes of recycled and reused water, approximately 3.4 Mcm, represent over 50% of total consumption ➢ The renewable electricity consumed, with guarantee of origin, equal to approximately 345 GWh, exceeds 30% of total electricity consumption ➢ Over 43 thousand tons of quality compost produced ➢ Of the total Capex considered for Taxonomy purpose, those aligned are equal to 74% ➢ Over 225 thousand hours of training provided, with a per capita average of 29 hours for women and 25 hours for men ➢ The UNI/PDR 125:2022 certification (Gender Equality) has been confirmed for Acea SpA and extended to 5 companies of the Group ➢ Companies with health and safety management systems cover 95% of headcounts ➢ Over 620 clinical screenings (senological, dermatological and endocrinological) carried out by Acea’s people as part of the company's cancer prevention campaign, with a 20% increase compared to the previous year ➢ A three-year protocol has been signed with the Ministry of Education and Merit for information and training activities on water resources and their responsible use, at primary and lower secondary schools of the national education system ➢ The weight of sustainability objectives on the variable part of remuneration systems (MBO and LTIP) has risen to 20% ➢ Sustainable Procurement Policy approved, whose subscription by suppliers is mandatory during the qualification phase ➢ Approximately 15,000 safety checks on construction sites for networks, water and electricity contracts ➢ Sustainability Plan @2028 defined and approved E S G
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26 SUSTAINABILITY RATING 26 "EE+" "B" Ma nagement "Leader ESG Identit y" 15.5 (low risk) "A" B - (st atus PRIME) 64/100
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27 Evolving context People for sustainable infrastructure
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28 Inflation1, % Interest rates3, % Areas WATER Italy 2022 2023 GRIDS 4.8%WACC WACC Deflator Deflator Indicators 0.4% 4.8% 3.4% 5.2% 0.4% 5.2% 2.6% Regulatory scenario NSP2, €/MWh 1. Istat Consumer Price Index for the whole community | 2. GME, National Single Price (average annual purchase price) | 3. Source: Blo omberg Volatile macroeconomic context, new regulatory scenario for Water and Grids Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 50 100 150 200 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 0 1 2 3 4 5 Mid-Swap 8y Euribor 6m Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 0 3 6 9 12 28
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29 Source: ECCO Climate, Global Water Intelligence, International Energy Agency, World Economic Forum, EIB, MGI, European Commis sion Europe: significant green investments planned… ... particularly in Acea's businesses WATER ELECTRICITY ENVIRONMENT Infrastructure Grids resilience Circular Economy 600 bn€ 400 bn€ 200 bn€ of European GDP per year in green investments by 2030 4% Projected investments until 2030 29
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30 30 The delivery of investments requires a deep understanding of a rapidly evolving context “Trilemma” of the energy transition 1 Availability of natural and financial resources 3 Skills and New Technologies 2 30
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31 ELECTRICITY "Trilemma" of the energy transition: Need for operators to ensure availability and quality of resources while meeting sustainability criteria ENVIRON- MENT Availability ~450 GW green capacity to be installed to meet decarbonization target +330 potential additional WtE facilities in Europe ~70% southern European population subject to seasonal water stress Sustainability -55% CO2 emissions from electricity production ~60% of recycling over municipal waste in Europe (vs. 48%) ~7 bn m3 potentially reusable wastewater in Europe WATER Quality -60% power outages thanks to smart grids +22 mln of people potentially heated by heat produced by WtE +70 mln new individuals with access to clean water Perimeter Europe, in 2030 1 Source: International Energy Agency, UN, European Council, European Environment Agency 31
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32 Capabilities and New Technologies New technologies affect asset management, workforce, and customer relations 2 New capabilities required by the labor market New Technologies 1. Includes engineers/designers, skilled workers/technicians, field workers Digitization: digital twin of network assets, automation of back-office processes and digitization of customer experience Artificial Intelligence: predictive maintenance, automatic field force dispatching and chatbots for customer support Robotics: drones for network monitoring, robots for waste separation, exoskeletons for construction support Engineering and delivery (gap of ~500k technicians1 in Europe by 2028) STEM capabilities (Science, T echnology, Engineering, Mathematics) End-to-end customer relationship management 32
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33 Finance High cost of debt (~4% vs. last 10-year average of ~1%1) 1. Average main refinancing operations fixed rates from 2014 to 2023 Supply chain Strong supply chain disruptions and implications for pricing and availability of key items for infrastructure delivery 3 Natural Resources Scarcity of primary natural resources such as water and natural gas Availability of natural and financial resources Scarcity and increase in the costs of production factors Source: ECB 33
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34 Italy: need for significant investments and technological development Water Electricity Environment Source: Global Water Intelligence, International Energy Agency, World Economic Forum, EIB, European Commission, White Paper 2 023 Increase in demand due to electrification of consumption (1.5x in the next 10 years) Strong regulatory push towards recycling in Italy and EU (EU: target of 65% recycling by 2035) Declining resource availability (-20% vs. beginning of 20th century) Expected further reduction due to climate change (-30/40% by 2050) Market fragmentation (~2.500 operators) Limited/heterogenous investments (average investments by inhabitant/year: 56€ large operators, 8€ operators “in economia” and 78€ average EU) Lower service levels vs. European peers (Italy SAIDI2 at 3x vs. Germany) Growth of new waste treatment value chains (textile polymers, batteries) Aging water networks (60% network: 30+ year old; 25%: 50+ year old) Significant leakages (2x European average) Under-investment in the grid vs. European peers (Netherlands/Germany at 3/4x vs. Italy1) Infrastructural gap in Central- Southern Italy (Northern Italy: ~70% WtE plants and biological treatments) 1. 2021 figures | 2. System Average Interruption Duration Index 34
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35 Regulation: toward output based models and Totex efficiency targets Electri- city Water From… …to Capex • Rate of return approach: tariff recognition of actual Capex (remuneration + depreciation) Opex • Price cap approach: cost in tariff determined based on historical data and efficiency targets (excluding selected costs, e.g., electricity in Water), sharing efficiencies between operator and user Incentive • Foreseen bonus/malus mechanisms based on quality KPIs • Price-cap-type efficiency incentives on Opex from 2024 (basic ROSS1) and expected also on Capex (integral ROSS) • Tariffs based on capitalization rates decided upfront • Service targets integrated in the regulation • Rate of return for Capex and price cap for Opex • Incentives: extended to reuse and purchased electricity • In other countries, Totex & output-based approach already consolidated (e.g. UK) 1. Regulation by Spending and Service Goals Opportunities Opportunities for operators which achieve: • Operational excellence in investments plan delivery, operations and financial management • Focus/ optimization of spending aiming at service quality 35
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36 Green Diligent Growth28 People for sustainable infrastructure
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37 “Developing and managing safe and sustainable infrastructures. With our people, ensuring access and circularity to critical resources for Citizens, Businesses, and Communities” Green Diligent Growth: Mission People for sustainable infrastructure
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38 Green Diligent Growth: Strategy Green Diligent Growth Focus on regulated infrastructure businesses by strengthening positioning and expanding into adjacent segments ESG across businesses People at the center Operation excellence with strong cost and investment discipline to sustain cash generation Optimization of financial structure and capital allocation Capex increase (also in innovation) Shareholder value growth (RAB/ Net Profit/ Dividends) 38 28
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39 Focus on regulated infrastructures Operational excellence Optimization of financial structure % regulated EBITDA1 EBITDA margin NFP/ EBITDA From (2020-2023)…… to (2028) 87% 90% 30% 43% 3.5x 3.1x Shareholder value growth Net Profit (CAGR) 1% 5% Total Capex (yearly) 1.0 bn€ 1.5 bn€ Capex increase Green Diligent Growth: Targets ESG across businesses0.4 bn€ 1.0 bn€ESG linked Capex (yearly) Green Diligent Growth 1. Regulated Includes, in addition to the regulated businesses Water Italy and Networks, the Public Lighting and Environment businesses 39 28
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40 People Processes Systems ESG Generazione Ingegneria Environment Water Electricity Production Engineering Green Diligent Growth: Operational framework 40 28
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41 Strategic objectives ESG: Sustainability Plan Approved by the Board of Directors in November 2024, the Sustainability Plan defines the objectives that the company intends to pursue, in line with the guidelines of the Industrial Plan, to respond to the main critical elements of the reference context, contributing to the 12 Sustainable Development Goals (SDGs) of the 2030 Agenda SDGs Strategic business-related objectives generate environmental benefits, even in order to mitigate and adapt to the effects of climate change, with a view to increase the flexibility of infrastructures and improve services Strategic objectives focused on people from a perspective of corporate responsibility towards the creation of shared value, towards the well-being and cultural growth of people, suppliers, territories and the community Sustainability Governance Evolution of supply chain Centrality of people Value for the community Infrastructure resilience and security Water protection Environmental protection 28
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42 ESG: Investments associated with the Plan28 Investments related to ESG areas in the Industrial Plan have been associated with objectives and lines of intervention for a total of approximately €5.4bn. In 2024, interventions worth €950m were carried out Areas of Intervention 2024 Capex Capex Plan Infrastructure resilience and security €418m €2,870m Digitization 74 299 Aqueducts strategic works 154 1395 Optimization of the sewage purification system 66 432 Power grid enhancement 123 744 Water protection €324m €1,183m Water quality 57 231 Leakage reduction 267 952 Environmental protection €205m €1,277m Biodiversity 56 145 Circularity of resources 115 540 Decarbonization 33 592 water 67% environment 10% generation 2% others 0,2% networks 21% 2024 Capex
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43 ESG: Transition and Adaptation Plan28 Transitionand Adaptation Plan • Extends the plan with long-term objectives by identifying the main enabling levers • It enhances the contribution to adaptation to climate change and the systemic contribution that Acea generates as an infrastructure operator • Characterizes the specificities of the business by defining targets and dedicated lines of intervention Sustainability Plan • Includes infrastructure resilience and security objectives • Extends environmental commitment beyond emissions to water conservation, circularity of resources and biodiversity • It defines targets of common benefit for people, the supply chain and for the territories and communities of reference The Transition and Adaptation Plan is being defined, formalising the Group's long-term objectives in relation to: mitigation and adaptation to climate change, circularity of resources, protection of biodiversity and ecosystems The Transition and Adaptation Plan aims to ensure alignment between industrial activities and sustainability objectives in an evolving regulatory and regulatory scenario and enhancement by the markets and the financial system
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44 ESG: Green & Blue Financing Framework28 ACEA has published the first Green & Blue Financing Framework, confirming the Company's commitment to the use of sustainable finance instruments for the implementation of investments in the reference businesses, starting with the integrated water service. • The first "Green & Blue Financing Framework" in Italy and among the first in the world to be implemented by corporate issuers • Specific focus on initiatives in the "Blue Economy" area linked to projects in the water sector and therefore eligible for the issuance of "Blue Bonds", to support investment plans in this strategic business area for the Group • It defines eligible projects according to specific sustainability criteria in the Group's main investment categories: water supply, wastewater treatment & collection, circular economy, energy efficiency, renewable energy.
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45 WATER: 1st operator in Italy and leader in Europe 20 mln clients served… …with innovative skills… …and across the entire value chain # Customers 10 mln 10 mln 780 mln€ EBITDA < IP 100% Acea Cloud native Data driven “Calix - Smart Meter”: for real-time measurement of water consumption and pressure “Workforce Management System”: platform for dispatching / field force routing optimization “Waidy - Water Management System”: platform for network analysis, monitoring and intervention planning River water Distinctive competencies in restoration Industrial water Distinctive competencies in treatment Capture and potabilization ~ 1.3 bn m3 of drinkable water Distribution and adduction 56,000+ km of water network Wastewater collection 23,000+ km of sewege network Treatment and purification ~900 mln m3 of wastewater treated Re-introduction in the environment Reuse of purified water in agriculture Peru Honduras Dominican Rep. 28
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46 WATER: Our vision International diversified operator Water net zero • Ensuring the availability of the resource • Monitoring/increasing the quality of the resource • Aspiring to be the: −Go-to operator at local level, ensuring maximum attention to local communities and people −Leading operator in terms of innovation, research and development Local approach and leadership in innovation 28 57% Weight on EBITDA ‘28
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47 WATER: Our strategy Increasing water systems’ resilience Simplifying the Water’s corporate structure to promote higher operational efficiencies (via a new sub-holding) Growing via tenders and partnerships aiming at aggregating local water utilities (leveraging on distinctive capabilities in concession management) Consolidating activities in Peru and Honduras Valuating growth opportunities in Europe, Africa, Middle East, also via partnerships (design, construction, and operation of networks/plants for potabilization/depuration/treatment of municipals, industrial and agricultural water) Developing collection and potabilization processes Optimizing and innovating network management SERVICE LEVEL INCREASE IN ITALY 1. Potential upside with respect to plan targets Strengthening SELECTIVE GROWTH IN ITALY AND ABROAD Development1 28
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48 • Implementation of strategic infrastructure works – Peschiera and large aqueducts • Implementation of aqueduct interconnection systems within and between areas • Engineering of a vulnerability model for climate risk assessment of the entire water system Increase in water system resilience • Districtualization of sewerage network • Centralization of purification plants • Reduction of sewage sludge produced • Reuse of wastewater Development of collection and purification processes • Districtualization of the water network • Implementation of network efficiency measures – PNRR and REACT EU • Increase in automation and machine learning in water volume management • Implementation of technology for predictive maintenance • Development of water quality monitoring systems also adopting new filtration systems • Development of innovative systems for desalination and potabilization Optimization and innovation of water network management WATER: Main lines of intervention28
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49 Major works Purification/sludge treatment Laboratory/reuse Securing Rome's water supply Fregene: reuse wastewater, purifier DN7500 Tunnel Salisano By-pass Securing sources area DN4000 Tunnels Water Management System, network digitization and smart metering Circular sludge management Centralization of sewage treatment plants WATER: Project examples NEW PESCHIERA AL TO 28
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50 Intervention Description KPIs Peschiera Aqueduct Construction of an upper section second line with high anti- seismic standards and possibility of maintenance without flow discontinuity (~10 m3/sec) • Length: ~25 km • Population served: >2 mln • Investment: ~0.7 bn€ during plan period Upgrade of Rome's second adduction system for greater resilience, possibility of inspection/maintenance activities, and sanitary protection of the resource • Length: ~7.5km • Population served : <1 mln • Investment: ~0.2 bn€ Marcio Aqueduct Ottavia- Trionfale Creation of new connection line to ensure alternatives for water supply to Rome and replenishment of Monte Mario reservoir • Length: ~5km • Population served: <1 mln • Investment: ~0.1 bn€ WATER: Major works examples28
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51 Develop synergies in water and energy, for example: • Recovery consortia: design, implementation and management of infrastructural works and actions for environmental protection and disaster prevention • Storage and pumping reservoirs: including installation of renewable electricity generation plants Synergies in water and energy • Identify new technologies, including artificial intelligence, to improve water use in agriculture • Focus on sustainable irrigation practices based on EU, national and regional regulations Optimizing water use in agriculture Promoting circular economy models, aimed at: • Recovering resources from Acea supply chain (e.g., wastewater treatment and composting plants) with applications in the agricultural supply chain • Recovering byproducts from the agricultural supply chain to feed Acea's plants Circular economy Explore new opportunities in foreign markets with a focus on: • T echnologies and know-how with high growth potential • Spillovers on local agricultural, water and energy communities • Support for institutions (central and local) International expansion A B C D Bonifiche Ferraresi example WATER: Partnership examples in agriculture28
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52 Revenues1, mln€ 2023 2028P 1,494 1,800 4% EBITDA, mln€ Capex2, mln€ RAB3, bn€ 2023 2028P 744 1,0207% 2023 2028P 682 9306% 2023 2028P 4.6 6.98% 4,700 1. Includes the synthethic result of non-financial participation consolidated by the equity method | 2. Gross of public contributions (e.g., PNRR) | 3. Includes the pro-rata value of RABs of companies consolidated by the equity method xx% CAGR ‘23-'28 WATER Italy: 2023-28 Projections28 CUM. 2024-28P
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53 ELECTRICITY: Infrastructural operator active in three areas28 1. Includes companies in the non-financial consolidated statement and main subsidiaries. 2023 figures 1. Grids (Rome) 2nd Italian distributor for POD 1.7 mln PODs in Rome Rome Flex: distributed flexibility management systems for smart grids Managed with innovative solutions 2. Public Lighting (Rome and T erni) Italy’s largest city grid (Rome) 250,000 light points 5,000 installations 3. Commercial 7th operator by energy sold 1.5 mln customers1 800+ charging stations authorized in 2023
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54 2nd operator in Italy focused on grid management and innovative services ELETRICITY: Our vision • Maximizing the investments on grid resilience to support the electrification of consumptions • Protecting the grid from any threat, physical and virtual Resilience and safety Service quality • Ensuring an orderly energy transition aiming at a significant strengthening and modernization of the grid • Promoting the decentralization and smartization of the grid also via Artificial Intelligence 28 31% Weight on EBITDA ‘28
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55 1. Possible upside vs. industrial plan target INCREASE IN SERVICE LEVEL DEVELOPMENT OF SMART CITY SERVICES AND SELECTIVE GROWTH ON GRIDS Developing Smart Public Lighting Developing other smart city infrastructures (surveillance infrastructure, environmental sensing, artistic lighting) Aggregating, where possible, distribution grids in small municipalities Promoting an Extraordinary Plan for Rome (including electrification of public services, cyber security, advanced connectivity) Networks/ Public Lighting: "Rome ready for 2030" by: Smarting the grid for dynamic management, control over PODs with 2G smart meters, and large-scale demand response via AI and IoT) Modernizing the MV/LV grid to increase safety (advanced diagnostics, remote control and automation) Upgrading Rome’s LV grid (increase resilience, available power and hosting capacity of 800MW) Commercial: strengthening positioning by increasing performance and service level ELECTRICITY: Our strategy28 Strengthening Development1
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56 Rome LV network upgrading • Increased power available to customers • LV network reinforcement - 230 V vs. 400 V grid transformation for 70k POD (PNRR scope) • Hosting Capacity increase of 800 MW (PNRR Scope) Modernization of MV/ LV grid to increase security • Maximizing telecontrol and automation • Increased "meshing" of MV and LV grid - closure of LV network in antenna • Reduction in customers served for MV line • MV cable diagnostics • MV and LV grid Asset Management • Selective modernization of MV and LV grid with increasing volumes during plan period • 100% of PODs equipped with 2G smart meters • 100% MV lines with automation by 2026 • 100% telecontrol of MV-side secondary cabins by 2028 • 40% telecontrol of LV-side secondary cabins to 2028 • Implementation optimized dynamic network management and massive demand response via AI and IoT platform Grid digitization for dynamic management Smart Public Lighting Development • Projects development for "smart" Public Lighting to serve cities 28 ELECTRICITY: "Rome ready for 2030", major investments
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57 28 ELECTRICITY: Project examples (1/2) Grids Artistic lighting Resilience Telecontrol 2G meter installation Piazza della Repubblica Domus Tiberiana Innovation Romeflex Drones: grid Inspection
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58 Remote control granular on all light points Fiber optics for low-latency service delivery and free WiFi connection Surveillance cameras for video-streaming and video analysis Environmental sensors aimed at measuring pollution levels Video-mapping for promotional and awareness campaigns Smart sensors for adoptive public lighting 28 ELECTRICITY: Project examples (2/2) Illustrative
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59 • Increased commercial push to support a full transition of AceaEnergia towards the free market • Profound business transformation with channel remix and strong push on pull and partnership channels • Optimization of the customer management model by ensuring an effective customers’ transition to the deregulated market • Completion of the installation of charging stations Performance growth in Retail market Service level growth E-mobility 28 ELECTRICITY: Growth in performance and service level of commercial business
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60 Revenues, mln€ EBITDA, mln€ Capex1, mln€ RAB2, bn€ 504 550 2023 2028P 2% 2023 2028P 2.8 3.7 6% 2,035 2023 2028P 3,111 2,535 -4% 1. Gross of government contributions (e.g., PNRR) | 2. Represented the value of RAB accounting 350 435 2023 2028 4% xx% CAGR '23-'28 28 ELECTRICITY: 2023-28 Projections CUM. 2024-28P
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61 ENVIRONMENT: 5th operator in Italy28 Presence in segments with high margins...1 1.8 Mton of waste managed 25 Facilities …in 8 regions… … and along the entire waste chain Midstream (Waste treatment) Pre- processing Waste-to- Material Waste-to- Energy Waste-to- Chemical Waste-to- Landfill Collection Drying, sorting, separation, granulation, pelletizing Conversion of waste into recycled materials and composting Conversion of waste in energy and/or heat/ steam/gas Conversion of waste to gas, fuel, chemicals (in development) Waste discharge and landfill gas recovery ASM T erni only Lombardy Veneto Valle d’Aosta Abruzzo Tuscany Umbria Marche Lazio 25% EBITDA Margin 1. 2023 figures
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62 ENVIRONMENT: Our vision Simplification and synergies • Simplifying the organization to maximize efficiency and efficacy • Maximizing the synergies in the management of facilities • Maximizing circularity focusing on the re-use of resources • Designing and managing new plants end-to-end with the highest industry standards Increased coverage of the entire waste cycle Operator of increasing national relevance 28 9% Weight on EBITDA ‘28
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63 Simplifying the corporate structure in 5 treatment activities (Waste-to-Energy, Composting, Landfills and TMB, Plastic Sorting and Recycling, and Industrial Waste) Expanding and revamping the existing plants (WtE, other plants) Closing the treatment cycle with EoW (End-of-Waste) initiatives (Heavy ashes of San Vittore, HTC, sludge, products from plastic synthesis) Consolidating the plastic supply chain aiming at increasing marginality (partnership to ensure the offtake of products generated by plants) Developing and managing, also in partnership, new plants with the highest industry standards Promoting new advanced technologies (CO2 capture/ storage and recovery of heavy ashes) ENVIRONMENT: Our strategy28 REORGANIZATION OF WASTE TREATMENT ACTIVITIES SELECTIVE GROWTH IN ITALY AND ABROAD Strengthening Development1 1. Possible upside vs. industrial plan target
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64 ENVIRONMENT: Project examples28 WtE – Energy recovery Recycling – Material recovery Innovative plants (circular economy) Consolidation of the plastics supply chain (~170 kton) JV with chemical partner to ensure plant output products sales Expansion of Waste-to-Energy activities (~200 kton) San Vittore: IV line construction + II line revamping T erni: revamping fumes line Valle d’Aosta: hydrothermal carbonization with End-of- Waste biolignite production
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65 Ancillary plants Experimental plants for CO2 capture CO2 storage through specific partnerships with external operators Construction of a district heating network aimed at providing thermal energy for the local community (civilian use) and potential steam for industrial use Photovoltaic plant, aimed at producing renewable energy and developing a Renewable Energy Community for local utilities Moving grate incineration technology WtE Carbon Capture Heavy ash Recovery Heavy ash recovery plant Dry treatment (metal separation, size reduction, sorting, mixing with concrete and water, finalized to End-of- Waste) District heating Photovoltaic Plant ENVIRONMENT: New ancillary plants example (WtE)28 Illustrative
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66 EBITDA, mln€ Revenues1, mln€ Capex2, mln€ 2023 2028P 334 430 5% 2023 2028P 84 155 13% 32 7 2023 28 3 2028P 39 35 150 325 475 2023 2028P 278 440 +10% 2023 2028P 1.8 2.2 +4% Operational KPIs Energy produced by WtE3, GWh/year Waste treated Mton/year ~0% Recurring Capex 1. Includes the synthethic result of non-financial participation consolidated by the equity method | 2. Gross of public contributions (e.g., PNRR); major investments for interventions on the WTE of San Vittore and Terni in 2026, not on Rome WTE | 3. Value expressed net of self-consumption xx% CAGR ‘23-'28 28 ENVIRONMENT: 2023-28 Projections CUM. 2024-28P
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67 28 ENGINEERING: 1st operator in Acea’s "core sectors" Highly specialized center of excellence… … with strong internal R&D... … and focus on design/studies in the captive market 116 mln€ Revenues 400+ Engineers 3 Companies1 National leadership in the water sector in testing methods and advanced instruments for laboratory analysis Positioning along the value chain Design >60 projects for 200 mln€ value of works DeliveryConstruction management & safety Laboratory tests >40 construction sites (40 mln€ revenues) >20 Construction sites and >500 Safety controls >16,000 inspections 34,000 tests with mobile laboratories 30,000 samples analyzed Studies, permits and research >200 specialized assignments for studies, permits and researches Acea focus 1. Excluding Ingegnerie Toscane, consolidated with Equity Method
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68 Center of excellence in Engineering ENGINEERING: Our vision Internal support and services • Maximizing the control on the entire life cycle of major projects • Increasing quality assurance services also externally • Growing internal competencies in advanced technologies/engineering • Strategic partnerships with industry leaders for know-how development Internal competences and partnerships 28
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69 Acea Infrastructure: integrating different companies in a unique center of excellence to manage major works: • Water: Peschiera (130 km), PNRR projects • Environment: revamping current plants and new WtE (upgrading S. Vittore in Lazio: ~500 kton at full production) • Production: photovoltaic pipeline (870 MW in development) Expanding specialized internal skills along the investment lifecycle, also via partnerships with industry operators (Engineering, tender management, project and construction management) Increase in laboratory services also for third parties to guarantee quality Water/Environment ENGINEERING: Our strategy28 SINGLE CENTER OF EXCELLENCE WITH FOCUS ON MAJOR PROJECTS ENHANCEMENT OF INTERNAL COMPETENCES AND SERVICE DEVELOPMENT Strengthening Development1
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70 PRODUCTION: Highly specialized operator28 Good mix of renewables… … to cover internal consumption... 1. Does not include capacity from WtE facilities. 2023 figures Current capacity1, % Hydroelectric 37% Photovoltaic 30% Thermoelectric 33% 30% Internal consumption coverage (current) ... and with a strong PV pipeline, MW 110 330 1,200 870 Thermal 100 Photovoltaic 120 Hydro Current capacity PV pipeline T otal by 2028
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71 Operator highly focused on renewables PRODUCTION: Our vision Carbon neutrality • Reducing CO2 emissions to meet SBTi targets • Achieving full balance of Group energy production/ consumption Energy Balance 28
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72 Deploying the existing solar pipeline also leveraging on financial partners (870 MW, of which 210 already authorized) Increasing generation capacity also from other renewable sources (market and/or tenders) Asset management: strengthening skills for facilities under management PRODUCTION: Our strategy28 1. Possible upside vs. industrial plan target DEVELOPMENT AND MANAGEMENT OF PV PLANTS SELF-CONSUMPTION SOLUTIONS AND ACHIEVEMENT OF SBTi TARGETS Implementing self-consumption solutions: installation (for the Group/third parties) of stations for the water distribution pressure reduction for energy recovery, and installation of in-situ or rooftop photovoltaic fields Strengthening Development1
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73 Facilities prepared to add storage systems even at a later stage Geographical distributionPipeline as of 31.12.2023 18 10 2 17 7 1 1-10 MW 10-100 MW Number of plants, of which 19 have already been authorized 57 55 plants (95%) in central and southern Italy 1 1 Pipeline sufficient to meet SBTi targets by 2032 (without considering impact of WtE Rome) of which ~210 MW already authorized 50 870 250 270 300 2024 25 26 27 T otal MW Number of plants PRODUCTION: Launched projects28
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74 Main strategy enablers Processes • Business process redesign • Procurement review • Working capital optimization • Strengthening of governance Systems • Focus on digitization, GenAI and robotics also to support service quality and on field safety • Industrial, financial and technological partnerships to accelerate growth on regulated businesses People • New Carta della Persona e della Partecipazione • Introduction of new skills • Strengthening of training and career paths • Enhancement of corporate welfare People Processes Systems
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75 Strengthening training and career paths 3. Continuous training and growth paths with innovative programs (e.g., networking, development, innovation, career, rewarding and benefit programs) to cultivate the Group's talents Introduction of new skills Development of a structured talent management to ensure attraction and retention of the best skills, through: • Dedicated recruitment programs (such as graduate program) • Up-skilling and re-skilling programs 2. Enhancement of corporate welfare 4. Launch of enhanced welfare programs, focused on 6 areas (health, mental and physical well-being, family, economic benefits, work-life balance, and pension) New Carta della Persona e della Partecipazione 1. Carta della Persona e della Partecipazione signed between Acea and labor unions People: Main actions28
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76 Artificial Intelligence Predictive maintenance through Smart Metering IoT for plants and networks Telecontrol Networks planning Workforce management Gen AI Customer Operations transformation into a full assisted self-service logic Virtual workforce development through Co-pilot tools Robotics/ drones Networks inspection/ monitoring Precision installation of components Plants surveillance Anomalies/ water leaks detection Digitization E2E process automation of Corporate/ operating companies Data Governance strategy to develop a Data Driven company Systems: Main actions 28
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77 WATER Development of projects to support water resources security ENVIRONMENT Co-development of facilities for Waste-to-Chemical technologies ELECTRICITY Co-development of photovoltaic generation facilities Financial partnershipsIndustrial partnership Reverse factoring Ad-hoc financing for SMEs Improvement of ESG sustainable indexes of the supply chain Focus on green products Medium-long term financing for the supply chain Incentive scheme for lower interest rates Focus on WATER Technology partnership Adoption of innovative technologies (e.g., Gen AI) Systems: Partnership network development 28
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78 2. Procurement review Strategic management of Group procurement and application of optimization levers (such as unbundling, standardization, should-cost methodologies) 1. Business process redesign Redesign of all major processes through data mining in favor of higher value-added activities and better interaction between business units and functions, to improve operational management and service quality Innovative strategies along the entire credit management and recovery chain, through data quality improvement, partnerships with specialized operator, and Artificial Intelligence Working Capital optimization 3. Strengthening governance 4. Sub-holding by business and renewed top management Revised Make vs. Buy strategy, insourcing strategic, low-availability, quality-impacting activities Processes: Main actions28
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79 Cash-cost with efficiency potential, bn€ Costs1 Baseline (0.2)Efficiencies Optimized costs 2028P 1.0 0.8 Key levers 1. Values expressed in real terms 2023 Continuous cash-cost optimization through: • Procurement optimization (supply unbundling, planning and standardization, should-cost...) • New technologies (AI and genAI, process mining, automation...) • Process optimization and simplification • Corporate simplification (e.g., plastics supply chain consolidation) Capex efficiencies re-invested in regulated businesses to support growth and improve technical and contractual quality Baseline CAPEX 2024-2028P (0.4)Efficiencies 0.4Efficiencies re-invested Optimized Capex 2024-2028P 7.6 7.6 Processes: Operational efficiencies Efficiencies ~6% Reinvested in Regulated Capex Efficiencies ~16% Including inflationary impact 28
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80 Key levers Clustering and dunning Development of differentiated routing paths for customer clusters via AI, enhancing dunning strategies Reduction of inaccessible customers Implementation of interventions to improve meters’ access Increase of tax injunction Use of tax injunction on clearly identified client clusters Increase of bank domiciliation rate on new acquisitions and existing customer base Improvement bank domiciliation Target of 160- 180 mln€ of extra-cash collection during plan horizon Processes: Credit efficiencies28
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81 Targets 2028 People for sustainable infrastructures
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82 Targets 2028: ‘‘Steady growth’’ RAB3, bn€ 2023 2026P 2028P 7.4 9.6 10.5 7% 2023 2026P 2028P 1,391 1,630 1,800 5% Regulated1 ~87% ~90% ~90% Cumulated Capex2 2024-28P, bn€ Regulated 0.7 Not regulated T otal 6.9 7.6 ~91%% of the T ot. ~9% 100% Net profit, mln€ 2023 2026P 2028P 294 350 375 5% xx% CAGR '23-'28 1. Regulated includes, in addition to the regulated businesses Water in Italy and Grids, the Public Lighting and Environment bus inesses | 2. Gross of public contributions (e.g., PNRR) | 3. Includes the pro-rata value of the RAB of the companies consolidated using the equity method. EBITDA, mln€ 82
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83 Water2 Environment Electricity3 Water Electricity Environment Other Acea Group ~9.5 Acea Group From (2022-23) 7% 10% 8% 7.9% 9% 12% 9% … A (2028) 8.4% 1. Shareholders Equity + NFP | 2. The regulated WACC has been considered for regulated businesses Grids and Water Italy; Water refers to activities in Italy | 3. Includes Grids, Public Lighting, Commercial Area excluding Acea Innovation Invested Capital1, bn€ Targets 2028: Returns by business ROIC2, pre-tax 83
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84 Targets 2028: More value to shareholders 1. Expressed on an accrual basis (e.g., the DPS 2023 is calculated based on the distribution of profits in 2023, which will occu r in 2024) 0.88 2023 2028P +4.0% p.a. ~5 ~6 EPS CAGR Dividend Yield >11 TSR DPS1, € Average annual TSR, % Annual dividend growth = 4.0% Over 1 bn€ in dividends throughout the business plan horizon Average annual return for shareholders exceeding 11% 84
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85 Potential further strategic upside from asset rotation Asset disposal/ partnership • Disposal of non-core assets characterized by higher result volatility, limited cash conversion, regulatory incentives for sale • Set-up of partnerships and potential opening of capital to partners in selected businesses, while maintaining control and operational management Potential additional EBITDA + safeguarding NFP improvement Selective allocation of proceeds to core and regulated sectors New tenders and agreements in the management of the integrated water service, selective growth abroad and in new segments Consolidation as DSO and growth in public lighting and smart city services Growth in WtE and new acquisitions for closing the treatment cycle and new technologies Internalization of engineering / EPC expertise and partnerships in renewables 85
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86 2023-28 Projections People for sustainable infrastructure
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87 Key assumptions of the Plan 2024 2025 2026 2027 2028 2.7% 2.1% 2.1% 2.0% 2.0% 2024 2025 2026 2027 2028 3.1% 2.5% 2.4% 2.5% 2.5% 103 105 108 108 110 2024 2025 2026 2027 2028 Euribor 6m 2.6% 2.4% 2.3% 2.3% 2.3% Mid-Swap 8y Inflation1, % NSP2, €/ MWh Interest rates3, % Areas WATER Italy 2024 2025-28 GRIDS 6.1% Regulatory scenario WACC WACC Deflator Deflator Indicators 2.8% 6.1% 0% 6.0% 5.9% 5.7% 1% 1. AFRY source, Q4-2023 update | 2. Forecasts for 2024 and 2025 based on forward prices observed in December 2023 @European Energy Exchange, (ii) forecast for 2026-2028 based on AFRY Q4-23 projections (weighted average 85% central scenario and 15% low scenario) | 3. Forecasts for 2024 - 2028 based on forward prices observed in December 2023 @Bloomberg 87
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88 Growth driven by regulated business… 744 925 504 257 535 155 550 155 84 59 2023 Regulated (18) Not regulated 110 60 2026P Regulated 15 Not regulated 1,020 75 2028P 1,391 1,630 1,800 WATER Italy ENVIRONMENT ELECTRICITY OTHER BU1 ~ 87% ~ 90%~ 90%% Regulated2 +5% 1. Other Business Units (BUs) includes Production, Water International, Engineering and Corporate | 2. Regulated Includes, in ad dition to the regulated businesses Water Italy and Networks, the Public Lighting and Environment businesses EBITDA, mln€ xx% CAGR '23-'28 88
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89 …and from investments in infrastructures… % Regulated3 Areas WATER Italy 2023 2028P GRIDS TOTAL 6.9 3.7 10.5 Cumulated capex1 2024-28P, bn€ RAB4, bn€ ~91% WATER Italy ENVIRONMENTELECTRICITY OTHER BU2 7.4 4.6 2.8 1. Gross of public contribution (e.g., PNRR) | 2. Includes Production, Water International, Engineering and Corporate | 3. Regul ated includes, in addition to the regulated businesses Water in Italy and Grids, the Public Lighting and Environment businesses | 4. Values expressed gross of public contribution. Acqua Italia includes the pro-rata value of the RAB of the companies consolidated using the equity method; for GRIDS it represents the accounting value of RAB | Note: values subject to rounding 2.0 0.5 0.4 4.7 7.6 CUM. 24-28P 89
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90 …ensures value creation for shareholders 294 375 409 2023 EBITDA (215) Depreciation and provisions (73) Financial management, participation, and other (40) Taxes 2028P Net profit, (Δ 2023-28P) mln€ 90
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91 Robust and improving financial structure (1/3) Operating Cash Flow (2024-28P), mln€ 1. Includes change in regulatory receivables (Grids accounting and Water adjustments) EBITDA ~0 Delta WC (0.6) Delta funds and other Operat. CF before Capex (5.6) Capex Operating CF after Capex 8.2 7.6 2.0 91
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92 Robust and improving financial structure (2/3) 2023 2026P 2028P 4,847 5,595 5,570 NFP, mln€ NFP/ EBITDA 2023 2026P 2028P 3.5x 3.4x 3.1x 92
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93 Robust and improving financial structure (3/3) 2023 2026P 2028P 4.2 4.5 4.5 Average duration of debt, years Debt structure Fixed Variable 2028P2023 91% 9% Increase of the average duration of debt through refinancing of expiring debt with: ‒ bond issues (~8 years bullet) and ‒ long-term financing (~15 years amortizing) Reduction of the fixed-rate component in line with the changed market context ‒ interest rates steadily rising since late 2020, with an expectation of reduction in the coming years Key Optimization Levers ~30% ~70% 93
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94 Closing remarks People for sustainable infrastructures
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95 1. Regulated Includes, in addition to the regulated businesses Water Italy and Networks, the Public Lighting and Environment bu sinesses Closing remarks28 Green Diligent Growth Focus on regulated infrastructure businesses by strengthening positioning and expanding into adjacent segments ESG across businesses People at the center Operation excellence with strong cost and investment discipline to sustain cash generation Optimization of financial structure and capital allocation Capex increase (also in innovation) Shareholder value growth (RAB/ Net Profit/ Dividends) Key numbers • EBITDA '28: ~1.8 bn€ (90% regulated1) • Net Profit '28: ~375 mln€ • NFP/ EBITDA '28: ~3.1x • Capex: ~1.5 bn€/year • Dividends: >1 bln€ cumulated in the plan horizon 95
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96 THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT REFLECT THE COMPANY’S MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL AND OPERATIONAL PERFORMANCE OF THE COMPANY AND ITS SUBSIDIARIES. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON ACEA S.P.A.’S CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. BECAUSE THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES, ACTUAL FUTURE RESULTS OR PERFORMANCE MAY MATERIALLY DIFFER FROM THOSE EXPRESSED THEREIN OR IMPLIED THEREBY DUE TO ANY NUMBER OF DIFFERENT FACTORS, MANY OF WHICH ARE BEYOND THE ABILITY OF ACEA S.P.A. TO CONTROL OR ESTIMATE PRECISELY, INCLUDING CHANGES IN THE REGULATORY FRAMEWORK, FUTURE MARKET DEVELOPMENTS, FLUCTUATIONS IN THE PRICE AND AVAILABILITY OF FUEL AND/OR ENERGY AND OTHER RISKS. YOU ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN, WHICH ARE MADE ONLY AS OF THE DATE OF THIS PRESENTATION. ACEA S.P.A. DOES NOT UNDERTAKE ANY OBLIGATION TO PUBLICLY RELEASE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE OF THIS PRESENTATION. THIS PRESENTATION DOES NOT CONSTITUTE A RECOMMENDATION REGARDING THE SECURITIES OF THE COMPANY. THIS PRESENTATION DOES NOT CONTAIN AN OFFER TO SELL OR A SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES ISSUED BY ACEA S.P.A. OR ANY OF ITS SUBSIDIARIES. *** PURSUANT TO ART. 154-BIS, PAR. 2, OF THE LEGISLATIVE DECREE N. 58 OF FEBRUARY 24, 1998, THE EXECUTIVE IN CHARGE OF PREPARING THE CORPORATE ACCOUNTING DOCUMENTS AT ACEA PIER FRANCESCO RAGNI – CFO OF THE COMPANY - DECLARES THAT THE ACCOUNTING INFORMATION CONTAINED HEREIN CORRESPOND TO DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS. Disclaimer 96
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97 Contacts Contacts Email: investor.relations@aceaspa.it Phone: +39 06 57991 Dario Michi Investor Relator Investor Relations Team Daniela Bellucci Simonetta Gabrielli Armando Iobbi Channels gruppoacea.it Website Social Networks @aceagruppo - #aceagruppo People for sustainable infrastructures 97