A2A H Results Milan, July 30 th,
Strategic Plan - 209 Update 3R Record level of market share in MSD Nord market Energy management and trading activities restructuring ongoing RESTRUCTURE Generation & Trading cost reduction in line with plan: - -26 FTE vs. H - - external costs vs. H EPCG negotiation ongoing; first dividend distribution since 2009 District Heating: - heat recovery from a glass manufacturer in Milan province RELAUNCH - underground connection of Canavese DH network to Milan City Center completed Retail: further free market customer base growth (+20k vs. H ) Expo: additional opportunity in Waste and Electricity Networks Strong M&A pipeline in waste treatment RESHAPE First solar thermal plant for district heating in Southern Europe built in Varese LED public lighting: Milan (~90%) and Brescia (~5%) projects under way; signed an agreement with Cassano d'adda Municipality 2
Strategic Plan - 209 Update 3D and additional projects underway Further improvement in Retail Credit Collection Dialogue: DISCIPLINE, DIALOGUE & DIGITAL - A2A multi-stakeholder Forum: a meeting structured on the basis of the model European Awareness Scenario Workshop, which involved many different categories of stakeholders - Public conference "The remuneration of the networks: a key asset for the future of energy" Sustainability Report complying with GRI 4 guidelines Diversity management project start-up ADDITIONAL PROJECTS Project EN&A: saving target identified. Implementation phase launched Signed a Letter of Intent with Linea Group Holding aimed at assessing a potential industrial partnership 3
H Results Highlights of the period Vs H + - Thermal Production Hydro Production Switch Regulated to Free Market Customer Base Legal Claim Cost Control Positive Non Recurring Items in H Climate Effect 4
H vs H Results Key Financials EBITDA EBIT +2% +4% 562 55 GROUP NET INCOME 302 34 NET FINANCIAL POSITION -4% +57% 52 3.363 3.240 97 5
H vs H Results Group EBITDA + +8 55 9-27 533 9 5-2 9 3 55 2 0 562-7 Energy District EPCG Non Recurring Ordinary Retail Heating and Ordinary Non Recurring Items other Items Generation Waste Networks Redundancy & Trading Redundancy Schemes Schemes 6
H vs H Results Generation & Trading EBITDA - +9 24 93 9-7 -25 Non Recurring Items Ordinary Redundancy Schemes -3 86 4 Ordinary Non Recurring Items 2 92-7 Electricity Margin +3-8 6 77 Environm. Markets Plants Hedging and Dispatching Trading Portfolio Fixed Costs Redundancy Schemes 7
H vs H Results Energy Retail EBITDA +7-2 8 55 53 54 47-4 Non Recurr. Items Ordinary Gas Market Electricity Market Fixed costs and other Ordinary Non Recurr. Items
H vs H Results Waste EBITDA -5-7 2 Treatment Plants -5 5 4-6 -2 08 5 2 0 5 77 7 7 3 32 34 Collection WTE Other Treatment Plants International projects Ordinary Non Recurring Items Collection Urban Treatment Industrial Treatment International Projects 9
H vs H Results District Heating EBITDA +8 +5 Volume Effect +7 3 39 2 2 Non Recurring Items Ordinary 47 6-4 -2 4 37 34 42 5 5 5 Price Effect Climate Commercial Environm. Effect development markets Heat services Other Heat Services District Heating 0
H vs H Results Networks EBITDA -2 +9 38 7-2 26 7 78 4 2 52 Non Recurring Ordinary Items Water Cycle Electricity Gas Networks Networks Public Lighting 36 9 68 69 54 53 5 35 8 66 52 2 Ordinary Non recurr. Items 5 Electricity Networks Gas Networks Water Cycle Public Lighting
H vs H Results EPCG EBITDA +2 Distribution + 3 30 32-2 9 8 22 2 Energy Distribution Revenues Other Energy Distribution Other 2
H vs H Results From EBITDA to Group Net Income 562-99 -49 239-74 EBITDA D&A Risk Provisions Net Financial Expenses 55-229 -20-96 52-77 -0 EBT Taxes Minorities 206-0 -8 Net Income 97 3
H vs H Results Capex BREAKDOWN BY ACTIVITY BREAKDOWN BY BUSINESS +9 +9 33 24 5 24 30 2 4 33 7 3 48 57 44 49 23 25 52 54 Mandatory Development Maintenance 23 2 3 5 28 EPCG Corporate Networks District Heating Waste Energy Retail Generation & Trading 4
H Results Net Free Cash Flow 562-79 -38-8 37-66 236-35 * 23-3 EBITDA Change in Net Working Capital Use of Funds Tax Paid Net Financial Expenses FFO () Capex Free Cash Dividends Net Free Flow Cash Flow () Funds from operations after working capital change * Of which 2 related to investments in shareholdings 5
H Results Gross debt and net financial position -204 3,973 529 3,363 3,240 2,90 2,95 449 Var. 5% Fixed rate 84% -23 232 65 Var. 6% Fixed rate 85% -60 3,769 586 Gross Cash and Net Financial Net Free Cash Financial equivalents + Position FY Flow H Debt FY Other Net Assets FY Net Financial Cash and Gross Position H equivalents + Financial Other Net Assets Debt H H Average debt maturity 5.8 years Average annual cost of debt from 3.9% of to 3.6% estimate Bonds Loans 6
Annexes 7
H vs H Results Consolidated Results: P&L H H CHANGE % REVENUES 2,467 2,582-5 -4.4% EBITDA 562 55 + +2.0% D&A (99) (229) +30-3.% Provisions (49) (20) -29 n.a. EBIT 34 302 +2 +4.0% Net Financial Expenses (77) (0) +23-22.8% Associates & JV 3 5-2 -40.0% Result from non recurr. transactions () - - -00.0% EBT 239 206 +33 +6.0% Taxes (77) (0) +24-23.8% Minorities (0) (8) -2 +25.0% NET INCOME 52 97 +55 +56.7% 8
H vs H Results Consolidated Results: Balance Sheet % H FY Tangible Assets 5,56 5,625 -.% Intangible Assets,303,38 -.% Shareholdings and Other Non Current Financial Assets 83 82 +.2% Other Non Current Assets/Liabilities (294) (287) +2.4% Deferred Tax Assets and Liabilities 302 323-6.5% Provisions for Risks, Charges and Liabilities for landfills (525) (498) +5.4% Employee Benefits (336) (369) -8.9% NET FIXED CAPITAL 6,094 6,94 -.6% Inventories 207 284-27.% Trade receivables and other current Assets,633,846 -.5% Trade payables and other current Liabilities (,472) (,865) -2.% Current tax Assets/Liabilities 2 83-74.7% WORKING CAPITAL 389 348 +.8% TOTAL CAPITAL EMPLOYED 6,483 6,542-0.9% Equity 3,243 3,79 +2.0% Net Financial Position 3,240 3,363-3.7% TOTAL SOURCES 6,483 6,542-0.9% 9
H vs H Results Fixed Costs -4-7 264 55 - - 247 - -5 8 60 3 250 50 50 8 8 59 62 Other EPCG Waste 37 8 0 36 8 8 Networks District Heating Energy Retail 76 36 65 Gen. & Energy Trading Retail Waste Networks Other * 65 Generation & Trading Waste change in perimeter (*) excluding change in perimeter 20
H vs H Results Labour costs -70 2,365 2,004 90 2,94 excluding change in perim. Change in perimeter -36 FTE() Net reduction -6-9 342 323 4-5 -8 Other costs FTE effect 3 326 LABOUR COSTS () Cost effect Change in excluding perimeter change in perim. () A2AThis Group s Full Time Equivalent information was prepared by A2A and it is not to be relied on by any 3rd party without A2A s prior written consent. 2
H Results Gross debt maturities as of 30/06/ 833 586 570 570 750 364 503 500 342 500 300 49 49 85 80 83 85 80 83 80 70 70 206 207 208 209 2020 202 2022 80 300 67 98 64 43 43 42 69 2023 2024 2025 Beyond 2025 Bonds Loans 22
Operational annexes 23
H vs H Results Breakdown of Volumes Volumes H H 3.247 4.323.076 CCGT production.8.557 376 Coal production 835.64 329 Oil production 64 992 35 EPCG production 590 60 20 A2A Group Hydro production 3.95 3.8-733 3.044 2.280-764 A2A Group Thermal production Δ of which of which A2A and Edipower production EPCG production 870 902 3 Wholesale electricity sales and Foreign Markets 4.2 5.365.244 Ipex sales 4.768 2.56-2.207 Electricity sales 3.79 3.478-32 Electricity sales to EPCG customers.336.406 70 Gas sales Mmc 665 626-39 Heat volumes sales t.49.334 85 Cogeneration electricity sales 53 46-7 Collected waste Kton 465 470 6 Waste disposal Kton.304.326 22 WTE electricity production 704 665-40 WTE heat production t 564 650 86 Electricity distributed 5.405 5.522 8 Gas distributed Mmc.020.068 47 Water distributed Mmc 30 29-24
H vs H Results Energy Scenario Average data Brent $/bbl Δ vs Δ % vs 08,8 59,4-49,4-45,4% C O2 - EU ETS cost /Tonn 5,7 7,2,6 27,7% Green C ertificates /MWh 9,9 97,6 5,7 6,2% /$ /$,37,2-0,3-8,6% /bbl 79,4 53,3-26, -32,8% /MWh 23,2 23,3 0, 0,5% c /mc 27,9 24, -3,7-3,3% /Tonn 55,9 53,3-2,6-4,6% /MWh 49,5 49,9 0,4 0,9% /MWh 56,2 54,7 -,5-2,7% /MWh 45,7 47,2,5 3,3% C C GT gas cost(4) /MWh 49,5 49,9 0,3 0,7% C lean Spark spread vs Peakload /MWh 2,2 2, -0, -5,9% C lean Spark spread vs Baseload /MWh -4,5-2,7,8 40,% C lean Dark Spread vs Baseload (5) /MWh,3 2,9,6 4,3% TWh 53,7 53,2-0,4-0,3% Bcm 32,7 35,2 2,6 7,9% Brent PSV () AEEGSI Gas Tariff C oal (API2) (2) PUN baseload (3) PUN peak (3) PUN off-peak (3) Italian electricity demand (6) Gas demand () Gas at virtual trading point (2) Pfor 96/3 Jan -Sep ; Pfor 62/4 Oct -Jun (3) hourly average for each month (4) based on gas at virtual trading point with 53% efficiency; transport costs included (5) 35% efficiency spread between energy prices and API2 coal cost (transport cost included) (6) data subject to update by Terna 25
This document has been prepared by A2A solely for investors and analysts. This document does not constitute an offer or invitation to purchase or subscribe any shares or other securities and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Some information contained herein and other material discussed at the meetings may include forward-looking information based on A2A s current beliefs and expectations. These statements are based on current plans, estimates, projections, and projects and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to changes in global economic business, changes in the price of certain commodities including electricity, gas and coal, the competitive market and regulatory factors. Moreover, forward-looking statements are current only at the date on which they are made. 26