Transformation
Business strengthening & change
A2A key actions
Greener portfolio
What
- Further expansion of RES platform
- Conventional plants reconversion
How
- ~170 MW of new RES (M&A + green-field)
- Project development for Brindisi, S. Filippo and Monfalcone
Leadership in gas-fired generation
What
- Leadership consolidation in flexible CCGT plants,optimizing risk/return ratio thanks to Capacity market
- Improvement of gas sourcing
How
- +800 MW dispatched CCGTs vs. 2017
- CCGT results balanced mix of market(MGP/MSD) and Capacity
- LNG opportunities, better short/long term mix
Adequacy & flexibility provider
What
- Match of growing need for peak capacity
- Exploration of innovative flexibility services
How
- Evaluation of new peak plants (e.g. OCGT)
- Projects on UVAM, UVAP, storage, …
A2A key actions
Customer focus
- Outstanding client service, with new multi-channel customer experience
- Preservation of excellent operations
- VAS in safety, comfort, energy-saving
- Energy advisor for SMEs and large enterprise
- Digitalization to enhance service/acquisition
Boost in new services
- New services: flexibility, DERs and storage
- New EPCs in energy efficiency services
- Organic growth in Public Lighting
- Expansion of electric mobility business
Mediuml-long term challenges
- Innovation & Digital to develop new services
- Unlocking IoT opportunities
A2A key actions
From waste to commodity
- Become Italian leader in recycling, selling high-quality secondary raw materials
- New WTE capacity to maintain safety of the Italian waste treatment system
End-to-end partner for urban services
- Enlarging geographic presence, leveraging on value chain integration
- Smart and innovative solutions for our territories
Continuos technical innovation
- Maintain plants at best available technology for environmental sustainability
- Improve circularity with innovation
A2A key actions
Cross business synergies
- Multi-business operation synergies (e.g. smart meters deployment, gas/ee integration in Unareti)
- Adoption of automated and digital solutions for asset and workforce management
Smart grid and quality improvement
- Achieve smart and resilient networks
- Improve energy efficiency of DH networks
- Develop water cycle performances
Gas Tenders
- Selective growth in high-priority ATEMs
- Focus on geographical consolidation
Excellence
Agile organization
Leader in operational excellence
Community
Attract and empower people
Engage external ecosystem
A2A uniqueness
Integrated Multi-Business Portfolio
A2A unique business portfolio with a well balanced volatility/growth mix
Maximizazion of cross-BU synergies
Execution capabilities
Proven ability in CAPEX execution and in reacting to scenario changes
Possibility to replicate successful models (LGH, plants flexibilization, PV, …)
Urban system integrator
A2A positioned to lead urban circular economy and energy transformation
Deep multi-level infrastructural presence
Proven capability to attract and involve local players in key territories
Highlights
- After the brilliant results of the 3R&3D Plan that guided the Group in the three-year period 2015-2017, the new Strategic Plan, "TEC" has been announced
- Growth in investments with a focus on digital and innovation
- 2.8 billion euros over five years, of which approximately 20% dedicated to digital investments and technological innovation;
- strong growth in renewables
- Further strengthening of the economic-financial results
- EBITDA at 1.39 billion euros and Net Profit at 0.48 billion euros in 2022
- NPF at 3.03 billion euros, NFP/EBITDA ratio down to 2.2x
- Dividend growth confirmed
Dividend targets:- 2018: euro 6.7 cents per share;
- 2019: 7.5 euro cents per share;
- in the following years minimum DPS growth equal to 5% per annum
- Additional projects not in the Plan
- The Plan does not prudently incorporate various growth initiatives, including territorial aggregations
- • Integration of the Strategic Plan and Sustainability Plan
- 2018-2022 Sustainability Plan approved and its 4 Pillars (Circular Economy, Decarbonization, Smartness in the Networks and Services and People Innovation) with the inclusion of the respective objectives directly in the new Strategic Plan
Where we start from:
Relaunch
Consistent industrial growth
Selective external growth
- +560 K customers (EE and Gas free market customer base)
+800 Kt waste treated
+200 €M of RAB - ~130 €M of operating efficiency
- 14 M&A deals +105 €M EBITDA
- Largest territory aggregations (+1 in pipeline)
Regeneration
Active role in the energy market transformation
- CCGT fleet active management: 4x production vs. 2014
- Stable profitability (volatility <10%)
- Created PV platform (+35 MW)
- Pilot projects on innovative solutions (UVAP, drones…)
Reshape
Public lighting, smart city, energy efficiency
- First-mover in consolidating energy efficiency sector
- +60% A2A Smart City EBITDA
- 120 K LED installed (+135%)
| EBTDA (€M) | 2014 | 2017 |
|---|---|---|
| Regulated | 420 | 437 |
| Quasi regulated | 236 | 343 |
| Merchant low volatility | 82 | 158 |
| Merchant high volatility | 287 | 273 |
| Total | 1,024 | 1,211 |
+18% Higher and more stable margin
| 2014 | 2015 | 2016 | 2017 | |
|---|---|---|---|---|
| NFP/EBTDA (€M) | 3.3 | 2.8 | 2.5 | 2.7 |
-18% Capital structure reinforced
| 2014 | 2015 | 2016 | 2017 | |
|---|---|---|---|---|
| DPS (€c/share) | 3.6 | 4.1 | 4.9 | 5.8 |
+61% Dividends growing steadily
| 2014 | 2015 | 2016 | 2017 | |
|---|---|---|---|---|
| CAPEX (€M) | 282 | 317 | 349 | 450 |
+60% Investing more with quality
| 2014 | 2015 | 2016 | 2017 | |
|---|---|---|---|---|
| ROI % | 7.8 | 8.7 | 11.3 | 11.8 |
+52% Growing, stable return >10%
Archives
A2A 2020 - Presente nel futuro. FY 2014 Results - Strategic Plan
For further details: Press Release
The A2A S.p.A. Board of Directors has approved the 2014 results
The Board of Directors has examined and approved the 2015-2019 Strategic Plan of the A2A Group