Slides
Page 1
0 1Q 2025 Results ROME, 14 MAY 2025 People for sustainable infrastructure
Page 2
1 Agenda Market Environment 1Q 2025 Results Appendix
Page 3
2 REGULATORY AND MARKET ENVIRONMENT D O W N T U R N I N T H E P R I C E O F C O M M O D I T I E S , N E W R E G U L AT O R Y P E R I O D TA R I F F A P P R O V E D 2 1. Istat data (NIC) | 2. Elaboration of data from Bloomberg, as of March 31st 2025 Interest rates2 Commodity prices and Inflation Regolation • Water: application of Water Service Tariff Method 4 (MTI-4, regulatory period 2024-2029), WACC equal to 6.1%. Tariff approvals for operators by local authorities completed, those by ARERA are underway (tariff of ATO2, Nuove Acque, Umbra Acque and SII Terni approved) • Grids: provisional 2025 tariff expected by May 31, WACC equal to 5.6%, updated the RAB revaluation parameter by adopting the Italian lPCA (1.1% for 2025) • 2025 energy price (SNP) rising to 138€/MWh (+46€/MWh vs 1Q 2024) • Gas price (PSV) rising to 49€/MWh (+19€/MWh vs 1Q2024) • March inflation +0.3% on a monthly basis and +1.9% on a trend basis (+1.7% on average from the beginning of the year)1 The following rates were reported, on average, in Q1 2025: ➢ 6M Euribor 2.5% vs 3.9% in 1Q 2024 ➢ 8Y MidSwap 2.5% vs 2.7% in 1Q 2024 The ECB performed 2 deposit rate cuts of 25 bps each in 1Q 2025, in continuity with the 2024 monetary policy
Page 4
3 Agenda Market Environment 1Q 2025 Results Appendix
Page 5
4 1Q 2025 Highlights 4 GROWTH TRENDS FOR ALL ECONOMIC INDICATORS FINANCIAL SOLIDITY AND FLEXIBILITY EBITDA equalto €384m, +€27m (+8%) vs 1Q 2024 reportedand +€24m (+7%) compared to recurring2 1Q 2024 driven by the growth in the regulated businesses, Water Italy, Grids and Public Lighting, and by Commercial and Generation businesses Net Profit amounting to €98m, +€15m (+19%) vs reported 1Q 2024, and +€3m (+3%) comparedto recurring1Q 2024. The growth in EBITDA more than offset the rise in depreciation linked to investments in regulated businesses Capex net of public subsidies amounting to €242m, in line vs 1Q 2024; including the investments financed by grants, the aggregate shows an increase of 6% compared to the previous year. The net investments in regulated businesses represent ~ 91% of the Group total The Operating free cash flow was negative for €127m. This allowed to maintain a solid financial structure, with a Net Debt/EBITDA LTM3 of 3.23x Group revenues of €1.1bn of which approximately €0.6bn related to regulated businesses, up by 4% vs 1Q 2024, mainly due to the investments carried out in the previous years and tariff approvals EBITDA +7%vs. 1Q 2024 excluding one-offs and changes in scope2 Net profit +3% vs. 1Q 2024 excludingone-offs CAPEX in line vs 1Q 2024 net of public grants OPERATING FCF - €127m Revenues +4%vs. 1Q 2024 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 The 1Q 2024 result has been adjusted to take into account the retroactive application of the tariff update relating to the MTI-4 regulation accounted for in 3Q 2024, the consolidation of AdF at equity and to exclude the extraordinary events of the Environment area. | 3. Last 12 months Ebitda.
Page 6
5 360 384 OVERVIEW OF 1Q 2025 RESULTS G R O W T H T R E N D O F A L L E C O N O M I C A N D F I N A N C I A L I N D I C AT O R S C O N F I R M E D 95 98 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. | 4. Last 12 months Ebitda. | 5. 2025 guidance: at EBITDA level, includes the equity consolidation of AdF for the entire year, does not include the contribution of the HV network in the months preceding the sale; at the NFP level, it includes the transfer of the HV only with reference to the consideration from Terna . | 6. 2024 EBITDA restated €1,428m. Focus on regulated businesses, which account for approximately 84% of the Group’s EBITDA and 91% of capex net of subsidies Sizeable increase in Net Profit, mainly driven by the operational performance NET DEBT/EBITDA ratio stable vs end of 2024 357 384 +24 (+7%) 242 242 5 20 247 262 0 (0%) Regulated3 REVENUES2 85% 84% 90% 91% 1,014 1,103 1Q 2024 1Q 2025 LTM4 NET DEBT/EBITDA (12) 083 +3 (+3%) 4,954 5,116 +163 (+3%) 3.18x 3.23x 1Q 2024 1Q 2025 Dic. 2024 1Q 2025 Regulated3 0 5 1Q 2024 1Q 2025 98 Non-recurring events 20255 Guidance confirmed: ✓ EBITDA +2%/+3% vs 2024 restated6 ✓ Capex ~€1.6bn (€1.2bn net of subsidies) ✓ Net Debt/EBITDA: 3.4/3.5x (3)
Page 7
6 1Q 2025 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 197 384 GENERATION EBITDA 1Q 2025WATER ITALY COMMERCIALGRIDS AND PUBLIC LIGHTING ENVIRONMENT OTHER BUSINESSES2 17 15 50 (2) 51% 28% 4% 4% 13% 0% EBITDA 1Q 2024 Change in scope and non-recurring events Recurring 1Q 2024 EBITDA Organic growth EBITDA 1Q 2025 107 357 360 384 EBITDA, €m 3 +7% (84%1) 1Q 2024 change in scope and non- recurring events (€3m), of which: ➢ -€15m consolidation at equity of AdF ➢ +€3m Terni WTE shutdown for revamping ➢ +€15m retroactive application of the tariff update relating to the MTI-4 regulation A 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 A 24
Page 8
7 83 95 98 1Q 2025 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 1Q 2024 Net Profit Operational management 1Q 2024 recurring net profit 1Q 2025 Net profit +3% 3 Non-recurring events 12 Financial management 0 1Q 2024 non-recurring events (+€12m), of which: ➢ +€2m downtime for revamping at the Terni WTE plant ➢ +€10m retroactive application of the tariff update related to the MTI-4 regulation A A
Page 9
8 1Q 2025 CAPEX T H E I M P O R TA N T P R O G R A M O F I N V E S T M E N T S I N I N F R A S T R U C T U R E C O N T I N U E S CAPEX 1, €m 1. Gross of grant-funded capex totalling €20m | 2. Including, in addition to the Water Italy and Grids regulated businesses, the Public Lighting and Environment businesses | 3. Overseas Water, Engineering & Infrastructure Projects and Corporate 84 8 3 15 4 GENERATION 1Q 2025 CAPEXWATER ITALY COMMERCIALGRIDS AND PUBLIC LIGHTING ENVIRONMENT OTHER BUSINESSES3 57% 32% 3% 1% 6% 1% • RECLAMATION AND EXPANSION OF WATER AND SEWER PIPES • EXTRAORDINARY MAINTENANCE OF PLANTS AND NETWORKS • INTERVENTIONS ON PURIFICATION SYSTEMS • UPGRADE OF THE GRID • WORK ON PRIMARY AND SECONDARY SUBSTATIONS • INSTALLATION OF 2G METERS • CUSTOMER ACQUISITION • PHOTOVOLTAIC PLANTS • CORPORATE: IT PROJECTS • WASTE LANDFILL (92%)2 148 262
Page 10
9 384 115 (127) (159) (163) 357 (100) (16) (30) 210 (242) (32) (33) 0 0 (65) 0 (1) (66) 27 (96) (18) (9) (95) 0 (95) 1 0 0 (94) 0 (3) (97) 1Q 2025 CASH FLOW CASH FLOW, €m 1Q 2025 CF before M&A and IFRS 16 T otal Cash flow LT regulatory receivables Change in provisions and other Operating FCF Financial income/ (charges) ∆ 1Q 2025 VS 1Q 2024 1Q 2024 Taxes DividendsEBITDA M&A IFRS 16Change in WC Capex net of public subsidies1 Operating FCF (-€127m) due to higher absorption of working capital (34) (39) 0 (3) 0 0 (196) Operating CF before Capex (32)(242) P E R F O R M A N C E I N L I N E W I T H Y E A R- E N D G U I D A N C E
Page 11
10 1Q 2025 FINANCIAL STRUCTURE F I N A N C I A L S T R E N G T H A N D F L E X I B I L I T Y W I T H A N E T D E B T / E B I T D A R AT I O O F ~ 3 . 2 X 10 «B a a 2» S t a b l e O u t l o o k 89% 2.10% 4.6 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 maturities1 €m DEC 24 1Q 25 ∆ 1Q 25 vs DEC 24 NET DEBT 4,954 5,116 163 Long-term debt 4,895 5,017 Short-term debt 759 592 Cash and cash equivalents (700) (493) NET DEBT/EBITDA LTM 31/03/2025 NET DEBT/EBITDA 31/12/2024 3.23x 3.18x NET DEBT DEC 2024-1Q 2025 €m Debt structure (maturity and interest rates as at 31/03/2025) DEBT FALLING DUE BY 2025 300 500 700 500 500 600 70031 42 2026 54 2027 74 2028 128 2029 128 2030 103 2031 2032 beyond Loans Bonds 2025 331 542 754 628 728 803 7% 93% 89% 11% 1. Maturities refer to Acea S.p.A. 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 Yen20b private bond issued in March 2010 was repaid at its natural maturity
Page 12
11 186 (0) 186 11 197 150 128 5 20 359 +24 (+7%) -22 (-15%) 155 148 1. Including gas distribution business | 2. Value gross of grants and proportionate RAB for the companies consolidated at equity; the RAB of Acquedotto del Fiora is equity accounted Revenues, €m 1Q 2024 1Q 2025 Grant-funded Capex, €m EBITDA, €m 1Q 2024 1Q 2025 RAB, mld€ WATER ITALY1: ORGANIC EBITDA GROWTH +6% O R G A N I C G R O W T H D R I V E N B Y I N V E S T M E N T S A N D TA R I F F A P P R O V A L S Growing recurring EBITDA (+€11m): Tariff growth (fully consolidated companies, net of pass-through charges) Higher results of companies consolidated at equity 1Q 2025Organic growth 1Q 2024 Non-recurring events and changes in scope 367 17 342 RAB 2 31/12/2024: €4.8bn Non-recurring events and changes in scope Recurring 1Q 2024 +6%
Page 13
12 105 1072 GRIDS AND PUBLIC LIGHTING: EBITDA GROWTH+2% G R O W T H D R I V E N B Y I N V E S T M E N T S 173 183 +9 (+5%) +27 (+47%) 57 84 1. 1. Gross of grants Total Electricity Distributed, GWh Number of PODs , ‘ 000 1Q 2024 1Q 2025 1Q 2024 1Q 2025 1Q 2024 1Q 2025 1Q 2024 1Q 2025 RAB, €bn Growing EBITDA vs 1Q 2024 (+€2m): Higher RAB WACC reduction from 6.0% to 5.6% 2G power meters installed in 1Q 2025: ~ 90K EBITDA, €mRevenues, €m Capex, €m 2,253 1,6751,665 2,253 1Q 2024 1Q 2025 RAB 1 31/12/2024: €3.1bn +2% Organic growth
Page 14
13 14 16 17 3 1 10 8 54 74 391 398 -2 (-24%) Treatment and disposal , Kton Wte electricity sold, GWh/y Revenues, €m Main EBITDA drivers, €m Capex, €m 75 74 -1 (-1%) Recurring EBITDA slightly growing (+€1m): Higher margins on WTE Lower margins on landfills and recycling +6% Non- recurring events 1Q 2024 Recurring 1Q 2024 69 1Q 2025 Non-recurring events and changes in scope 1Q 2024 1Q 2025 1Q 2024 1Q 2025 1Q 2024 1Q 2025 1Q 2024 1Q 2025 (6) Organic growth ENVIRONMENT: GROWING EBITDA H I G H E R M A R G I N S O N W T E
Page 15
14 GENERATION: ENERGY SCENARIO AND HIGHER VOLUMES O V E R 2 0 0 M W O F A U T H O R I Z E D S O L A R P L A N T S( R E A D Y T O B U I L D ) 5 3 21 31 +10 (+50%) -2 (-43%) Revenues, €m Capex, €m EBITDA, €m 1Q 2024 1Q 2025 79 95 72 75 23 35 photovoltaic thermoelectric hydroelectric 205 174 T otal energy output, GWh 1Q 2024 1Q 2025 Growing EBITDA (+€7m): Higher prices on the energy markets (SNP +46€/MWh vs 1Q 2024) and higher volumes (+18% vs 1Q 2024) ➢ 155 MW of installed photovoltaic capacity reached 8 15 7 +94% Energy scenario and higher volumes produced 1Q 2024 1Q 2025 1Q 2024 1Q 2025
Page 16
15 1,134 1,123 232 92 44 40 1Q 2024 1Q 2025 COMMERCIAL: INCREASING EBITDA Total gas sold, Mmc Number of gas customers, ‘000 Total electricity sold , GWh Number of electricity customers, ‘000 FREE MARKET 659 752 491 179 90 77 1Q 2024 1Q 2025 1,0081,240 G R O W I N G M A R G I N S A N D C U S T O M E R B A S E O N T H E F R E E M A R K E T Revenues, €m EBITDA, €m PROTECTED MARKET Growing EBITDA (+€7m): Higher margins and customer base on the free market 16 15 +60 (+13%) 466 Capex, €m 1Q 2024 1Q 2025 -1 (-6%) 1,2551,410 GRADUAL PROTECTION MARKET 332 408 1Q 2024 1Q 2025 86 116 1Q 2024 1Q 2025 43 50 7 1Q 2025 +16% 1Q 2024 Organic growth 525 Non-recurring events and changes in scope 1Q 2024 1Q 2025
Page 17
16 Agenda Market Environment 1Q 2025 Results Appendix
Page 18
17 17 SUSTAINABILITY RATING "EE+" "B" Ma nagement "Leader ESG Identit y" 15,6 (low risk) "A" B - (st atus PRIME) 64/100
Page 19
18 CONSOLIDATED INCOME STATEMENT AS AT 31/03/25 Consolidated Income Statement (€/000) 31 March 2025 31 March 2024 Increase/(Decrease) Sales and service revenues 1,078,253 990,461 87,791 Other operating income 24,382 23,036 1,346 Consolidated net revenue 1,102,635 1,013,497 89,138 Staff costs 77,479 89,432 (11,953) Cost of materials and overheads 649,564 569,821 79,743 Consolidated operating costs 727,044 659,253 67,790 Net profit/(loss) from commodity risk management 0 0 0 Profit/(loss) on non-financial investments 8,481 2,701 5,780 Gross Operating Profit 384,073 356,945 27,127 Net impairment losses/(reversals of impairment losses) on trade receivables 22,199 19,723 2,476 Amortisation, Depreciation and Provisions 172,865 168,931 3,934 Operating Profit/(Loss) 189,008 168,291 20,717 Finance income 7,931 11,135 (3,203) Finance costs (40,289) (44,162) 3,873 Profit/(Loss) on investments 409 410 (1) Profit/(Loss) before tax 157,059 135,673 21,386 Income tax expense 49,804 42,194 7,610 Net Profit/(Loss) 107,256 93,480 13,776 Net Profit/(Loss) from Discontinued Operations Net Profit/(Loss) 107,256 93,480 13,776 Net Profit/(Loss) attributable to non-controlling interests 9,250 10,915 (1,665) Net Profit/(Loss) attributable to the Group 98,006 82,565 15,441 Earnings/(Loss) per share attributable to owners of the Parent Basic 0.46020 0.38769 0.07250 Diluted 0.46020 0.38769 0.07250 Earnings/(Loss) per share attributable to owners of the Parent net of Treasury Shares Basic 0.46110 0.38845 0.07265 Diluted 0.46110 0.38845 0.07265
Page 20
19 CONSOLIDATED BALANCE SHEET AS AT 31/03/25 Consolidated Statement of Financial Position (€/000) 31 March 2025 31 December 2024 Increase/(Decrease) Property, plant and equipment 3,407,364 3,363,465 43,898 Investment property 9,698 9,711 (13) Goodwill 240,960 241,041 (80) Concessions and infrastructure rights 4,052,785 3,999,275 53,510 Intangible assets 406,865 417,231 (10,367) Right-of-use assets 91,446 93,267 (1,821) Investments in unconsolidated subsidiaries and associates 497,768 488,089 9,679 Other investments 7,670 7,990 (320) Deferred tax assets 218,799 218,801 (2) Financial assets 38,667 39,553 (886) Other non-current assets 885,235 852,079 33,156 Non-current assets 9,857,256 9,730,502 126,754 Inventories 125,473 122,556 2,917 Trade receivables 1,122,825 1,027,608 95,217 Other current assets 473,708 438,259 35,449 Current tax assets 7,615 9,436 (1,821) Current financial assets 149,018 186,801 (37,784) Cash and cash equivalents 341,801 513,476 (171,675) Current assets 2,220,440 2,298,136 (77,696) Non-current assets held for sale 182,957 181,320 1,638 TOTAL ASSETS 12,260,654 12,209,958 50,695 31 March 2025 31 December 2024 Increase/(Decrease) Share capital 1,098,899 1,098,899 0 Legal reserve 167,986 167,986 0 Other reserves 398,649 396,666 1,983 Retained earnings/(accumulated losses) 848,763 509,935 338,828 Net profit/(loss) for the year 98,006 331,620 (233,614) Total equity attributable to the Group 2,612,302 2,505,105 107,197 Equity attributable to non-controlling interests 376,476 370,462 6,014 Total equity 2,988,778 2,875,567 113,211 Staff termination benefits and other defined-benefit obligations 75,329 77,609 (2,280) Provisions for liabilities and charges 269,912 234,099 35,814 Borrowings and financial liabilities 5,016,745 4,895,268 121,478 Other non-current liabilities 748,715 744,195 4,520 Non-current liabilities 6,110,702 5,951,171 159,531 Borrowings 590,181 758,611 (168,429) Trade payables 1,807,909 1,872,451 (64,543) Tax liabilities 45,173 40,821 4,352 Other current liabilities 706,150 699,576 6,573 Current liabilities 3,149,413 3,371,459 (222,047) Liabilities related directly to assets held for sale 11,761 11,761 0 TOTAL EQUITY AND LIABILITIES 12,260,654 12,209,958 50,695
Page 21
Q& 1Q 2025 Results Persone per infrastrutture sostenibili
Page 22
21 THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT REFLECT THE CURRENT VIEWS OF THE MANAGEMENT WITH REGARD TO FUTURE EVENTS AND THE FINANCIAL AND OPERATIONAL PERFORMANCE OF THE COMPANY AND THE GROUP. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON 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 HEREIN 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 REFERENCE REGULATORY FRAMEWORK, FUTURE MARKET DEVELOPMENTS, FLUCTUATIONS IN THE PRICE AND AVAILABILITY OF FUEL AND ENERGY AND OTHER RISKS. YOU ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS DOCUMENT, WHICH ARE MADE ONLY AS OF THE DATE OF PUBLICATION HEREOF. ACEA S.P.A. DOES NOT UNDERTAKE ANY OBLIGATION TO PUBLICLY RELEASE ANY UPDATES OR REVISIONS TO THE AFORESAID FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE OF THIS PRESENTATION. THIS PRESENTATION DOES NOT CONSTITUTE A RECOMMENDATION REGARDING THE PURCHASE OF SECURITIES ISSUED BY ACEA S.P.A., NOR DOES IT CONTAIN AN OFFER TO SELL OR A SOLICITATION TO OFFER TO BUY SECURITIES ISSUED BY ACEA S.P.A. OR ANY OF ITS SUBSIDIARIES. *** PURSUANT TO ART. 154-BIS, SECTION 2, OF LEGISLATIVE DECREE NO. 58 OF 24 FEBRUARY 1998, THE EXECUTIVE RESPONSIBLE FOR ACEA’S FINANCIAL REPORTING, PIER FRANCESCO RAGNI – CHIEF FINANCIAL OFFICER OF THE COMPANY - DECLARES THAT THE ACCOUNTING INFORMATION CONTAINED HEREIN IS CONSISTENT WITH THE UNDERLYING ACCOUNTING RECORDS. DISCLAIMER 21