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Strategy

Strategy and guidelines: 3R and 3D

 

relaunch Relaunch

 

  • Growth in environment, smart networks and energy services
  • Focus on low-risk business
Asset development
REGULATED BUSINESS WASTE TREATMENT DEVELOPMENT
Additional investments (+600 €M vs. previous plan) in core, growing, low-risk businesses

   

Market growth
ORGANIC DEVELOPMENT M&A AND SYNERGIES
Consistent growth in retail, waste collection and DH Prudent M&A targets Conservative targeted synergies

 

Cost reduction
EFFICIENCY AND OPTIMIZATION
En&A project on track and launch of a new operational excellence program

 

reshape Reshape

Public lighting

  • Buying options in smart city and green economy
  • From pilot projects to market solutions
Smart city

A2A SMART CITY

MOBILITY SOLUTIONS

Strong pipeline of business development agreements

Catching the key trends in the mobility evolution: green, shared and connected

 

Energy efficiency

PUBLIC LIGHTING

ESCo PROJECTS

Higher targets also thanks to selective M&A deals already ongoing

New M&A deals in pipeline

 

regeneration Regeneration - NEW

  • Active role in the energy market transformation
  • Flexible fleet to serve shortening EU markets
  • Re-alignment with EU Winter Package
  • Development by adjacencies

 

MEDIUM TERM STABILITY ACTIVE MANAGEMENT OF CCGT GROWING OPTIONS RES/DERS NEW SOURCES OF GROWTH
  • 5-year SFM plant must-run
  • Hydro and baseload stable production
  • Short-term market opportunities
  • Additional medium-term market space
  • from European trends
  • Capacity market and generation margins upside
  • Possible moderate addressable demand increase
  • Traditional thermal plant reconversions
  • Organic and inorganic growth in RES and in new market opportunities

 

 

discipline Discipline

  • Operational excellence project adoption
  • Further deleveraging, with higher Capex and DPS
  • Sustainable Dividend policy

 

dialogue Dialogue

  • Extension of multi-stakeholder forum and territorial sustainability reports
  • Sustainability targetin management MBO
  • People: ageing policy, welfare, managerial development, talent management, employer branding

 

digital Digital

  • Further Business Unitsprocess digitalization
  • New HR ERP
  • Strong fiber development
  • New IT and digital services to municipality
  • Strong investments in automation

Highlights

  • Readjustment of the strategic priorities - After the brilliant results of the two-year period 2015-2016, acceleration in networks, environment and customers; conventional generation towards transformation
  • Significant increase in investments - 2.75 billion euros in five years (+500 million euros compared to the 2016-2020 plan). Almost 80% in networks and environment
  • Further improvement in economic-financial results - EBITDA at 1.38 billion euros and Net Profit at 0.47 billion euros in 2021 NFP down by over 0.6 billion euros to 2.5 billion euros
  • Increase in dividends confirmed 2019 - Target: 7.5 euro cents per share
  • Potential upside from External growth and new efficiencies not in the plan - In line with previous Plans, the Plan, cautiously, does not incorporate various external growth and further cost efficiency initiatives
  • 4 pillars of sustainability confirmed - Renewal of the commitment to Circular Economy, Decarbonization, Smart Grid and Services and People Innovation – with the breakdown of the 2030 Sustainability objectives, together with actions and results that can be achieved in the Plan period.

 

A2A targets

Further details

2014-2016 achievements

 

RESULTS AND STRATEGIC GOALS DELIVERED

  • 3 years of growing results exceeding plan
  • 12 quarters with continuous debt reduction
  • Dividend (+50%) and stock price growth (+61%)*
  • 82 €M savings vs. 2014 cost base

regeneration Restructure - Completed

Generation & Trading

  • 20 €M cost savings in CCGT plants in 2 years
  • Market/seasonal opportunities
  • Leadership in ancillary services
  • Chivasso already best in class, other plants under way
  • A2A Energiefuture, thermal plant re-conversion
  • A2A gencogas, single vehicle for A2A CCGTs

 

relaunch Relaunch

Environment

  • +8% waste treated (2,800 ktons in 2016)
  • +26% inhabitants served (3.4 M in 2016)

Energy retail

  • +117% free market customers (694,000 POD in 2016)

Networks & Heat

  • +13% District Heating network expansion in Milan (299 km in 2016)

Selective external growth

 

reshape Reshape

Public lighting

  • +125% LED relamping (196k lighting points in 2016)

Energy efficiency

  • 1st Italian independent ESCo acquired (Consul System)

Smart City

  • A2A Smart City company: set-up completed and first pilot projects administration

E-Mobility

  • 1st Italian Fast Charge public network (90k recharges in 2016)

discipline Discipline

  • +50% of DPS increase in three years
  • FFO/Debt, key rating indicator, improved up to 24%
  • Implementation of Enterprise Risk Management structure
  • 15 Lean Thinking pilot projects

 

dialogue Dialogue

  • A2A's first sustainability plan & integrated report
  • 4 multi-stakeholder forum and territorial sustainability reports
  • People and organization:
    • Smart working, Organizational Compass Project, Futura2a, ABC Project, Melograno, ...

 

digital Digital

  • New digital platform for customer base
  • Digitalization of networks processes (WFM, IDMS, …)
  • Digitalization of CCGT Chivasso plant
  • New solar thermodynamic plant at San Filippo del Mela site

 

Archives

A2A Business Plan News

Periodic update service for investors and analysts on the significant steps of A2A Business Plan – such as relevant investments, new projects, achievements, contracts, agreements.

 

Concise, non-price sensitive news related to the Strategic Plan Guidelines (i.e., the 3 Rs, the 3 Ds and the additional projects) and the Business Units concerned.