KEY ACTIONS

Process of transformation towards a greener generation portfolio

• Further expansion of RES platform
• Reconversion of conventional plants

Provider of adequacy and flexibility services, with the aim of meeting the growing electric system needs

• Leadership consolidation in flexible CCGT plants
• Exploration of innovative flexibility services

  HIGHLIGHTS

• Over 150 MW of new RES, up to 280 MW (owned and managed), for a total capacity installed of 2.2 GW including hydro
• Reactive power for grid voltage regulation services (10 years, Brindisi plant)
• Acceleration of thermal plant reconversion through solutions based on A2A core competences, with a circular economy perspective and designed according to local needs
• Opportunities in gas peakers, storage and hydro pumping to meet growing flexibility need

  KEY ECONOMIC TARGETS

• 323 million euros of EBITDA at 2023, -115 million euros from environmental market and SFM, +79 million euros mainly from RES development and capacity market
• 582 million euros of cumulated CAPEX at 2023, of which 295 million euros from M&A and RES development

  KEY ACTIONS

Greater focus on customers, in a context of deep market transformation

• Outstanding client service, with improved multi-channel customer experience
• Preservation of excellent operations
• VAS in safety, comfort, energy-saving
• Advisor for SMEs and large enterprise
• Digitalization to enhance service/acquisition

Growth in new services, to be more competitive in an increasingly demanding market

• New services: flexibility, DERs and storage
• New EPCs in energy efficiency services
• Organic growth in Public Lighting
• Expansion of electric mobility business

  HIGHLIGHTS

• 2.7 million mass market power & gas free customers, within a stable customer base (full liberalization expected by July 2020), with further opportunities in “safeguard”, leveraging excellent meter-to-cash management
• Over 1,660 e-cars charging stations by 2023, to develop the e-mobility infrastructure network on key territories

• Strong boost of EPC projects with significant investments (81 €M vs. 10 €M previous plan)

• Contracts for heat management of private buildings (about 30 €M CAPEX)

  KEY ECONOMIC TARGETS

• 323 million euros of EBITDA at 2023, +95 million euros from Power & Gas, cost to acquire and other operating costs, +41 million euros from new energy services (energy solutions, smart cities, public lighting and value added sercices)

• 402 million euros of cumulated CAPEX at 2023, of which over 40% Digital & Tech CAPEX

  KEY ACTIONS

Consider waste more and more as a commodity and not as waste (“from waste to commodity”)

• Become Italian leader in recycling, also with downstream integration with high-quality secondary raw materials
• New WTE capacity (projects approved) to maintain safety of the Italian waste treatment system

Become a unique partner for urban services offered, growing in new geographical areas by exploiting our collection capabilities and developing innovative solutions

• Enlarging geographic presence, leveraging on value chain integration
• Smart and innovative solutions for our territories

  HIGHLIGHTS

• 9 new treatment plants to strengthen our leadership in municipal solid waste market and to boost a full circular approach to achieve effective material and energy recovery in areas characterized by infrastructural gap
• contribute to reduce the Italian shortage of WTE capacity with 400 ktons of waste treated by WTEs
• Industrial waste:
  • Speed-up in the treatment of non-hazardous special waste, boosting innovation and new technologies (i.e. AI for robotic picking)
  • Focus on collection and waste logistic services dedicated to SMEs
  • Entering environmental services segment, and partnership in hazardous waste
• Vertical integration downstream in order to support secondary raw material use, focusing on plastic and paper

  KEY ECONOMIC TARGETS

• 381 million euros of EBITDA at 2023, +107 million euros from new plants
• 943 million euros of cumulated CAPEX at 2023, 82% in plants

  KEY ACTIONS

Increase the quality of networks, the stability and reliability of the electricity grid

• Development of smarter and resilient networks
• Increase water cycle performance
• Multi-business operation synergies with adoption of automated and digital solutions

Renewed commitment to participate in tenders for the awarding of gas concessions, with the goal to increasing the number of delivery points (POD) managed

• Selective growth in high-priority ATEMs
• Focus on geographical consolidation

  HIGHLIGHTS

• 35 primary stations supporting Milan and Brescia electrification
• 1.4 million smart meters installed in Plan years: 420,000 gas, 850,000 electricity, 143,000 water
• Decarbonization of DH sources, through further development of storage and waste heat recovery
• Phase-out of Lamarmora coal plant

  KEY ECONOMIC TARGETS

• 518 million euros of EBITDA at 2023, +62 million euros from Gas and Electricity, +25 million euros from Water Cycle, +26 million euros from district heating
• 1.963 million euros of cumulated CAPEX at 2023, of which 504 million euros from Gas Tenders

Three-fold benefit from diversification
 

1. Typical “multi-business“ benefits
   scale synergies on financing, sharing of central unit costs, cost duplication avoidance, …
    
2. Vertical integration
   in each BU value chain: end-to-end results control, commodities natural hedging, certainty of supply/demand, …
    
3. Synergies inter adjacent businesses
   sharing of competence centers, natural hedging inter Bus, single regulation interface, …

• Both En&A and Mistral projects up and running
• 2018 targets achieved and exceeded
• Targets @2023 confirmed: ~80 €M of additional savings vs. 2018
• Further projects under evaluation contributing up to 20 €M of additional EBITDA *

* _{Additional projects (not included in BP numbers}

Fixed assets

Note
* Merchant includes High and Low Volatility

Examples

• Smart meters
• E-mobility
• New Electric primary stations
• New IT tools for trading activities
• Advanced Analytics for predictive maintenance, route optimization, …
• Robotic Process Automation
• IoT for urban development
• Artificial Intelligence
• Inspections with drones

A2A Community widening, consolidating new territories: ACSM-AGAM

#5 provinces covered

~900 k inhabitants served

Growth key drivers

• Gas tenders
• Customer base development
• WTE revamping
• Waste treatment
• DH development
• Public Lighting