31/07/2025 - A2A S.p.A.: H1 2025 Presentation

[X]

‌H1 2025 results

Milan, 31st July 2025



‌H1 2025 execution: laying the base for future growth

Reaffirming the bond with our

Stakeholders

313 €M dividend paid

>+4% yoy

Launch of Employee Stock Ownership Plan 86% subscriptions

Upgrade of rating

outlook to "positive"



Main achievements

Industrial push on electricity





Major asset rotation towards electricity grids

Enhanced electricity networks resilience new primary substation



1.6M electricity customers reached on free mass market

Business risk profile optimization



LNG supply

agreement with BP

20-year DH concession tender won





In North-Milan area

Higher % of EBITDA from regulated activities (*) increased to 32%

Paving the way for emerging opportunities





First data center connected to DH network

~0.4 €B development

capex executed

on track with Plan @2035



(*) Electricity and gas networks, water cycle, district heating, collection and regulated treatment

2

‌H1 2025 Results: resilient performance, improving financial solidity

Key Financial Indicators (€M)

Revenues

EBITDA

Ordinary EBITDA









+2%

2.3x

2.5x

NFP/EBITDA*



net of exceptional hydro production effect in H1 2024

Group Net Income

Ordinary Group Net Income

Net Financial Position

+1%



net of exceptional hydro production effect in H1 2024

+2%



Net of 11€M

settlement of the dispute with the Municipality of

Cinisello Balsamo





Net of 8€M

  • price adjustment referring to the acquisition of the stake in Tecnoa (WtE Crotone)

  • Badwill recognition from the completion of PPA process after Biomax acquisition

Contribution from exceptional hydro production

Note:

(*) EBITDA rolling

3

‌H1 2025 results: consistent CapEx growth to support ecological transition

€M

Breakdown by Activity Breakdown by BU





28%

72%

51%

72%

Breakdown by SDGs

Breakdown by EU Taxonomy

Breakdown by Circular Economy & Energy Transition

15%

85%

SDGs



Other Capex

Note:

(*) 2024 pro forma consistent with the new organizational structure (BU Circular Economy)

Aligned Eligible

Energy Transition Circular Economy

4

‌H1 2025 EBITDA: business integration provides consistent results delivery









-11%**

-24%

-10%

+6%

+33%

+

  • Thermoelectric production

  • Revenues from urban WTE



  • Electricity distribution network

    consolidation (Duereti)

    5



    **Contribution from exceptional hydro production

    -

  • Hydroelectric production

  • Safeguard Market



Note:

(*) 2024 pro forma consistent with the new organizational structure (BU Circular Economy)



‌Generation & Trading: diversification of sources supports performance despite hydro normalization

EBITDA €M



Hydro, Wind &Solar production (GWh)























Thermal Production (GWh)



RES: normalization of hydro production

Flexibility:

higher

CCGT

production

and capacity market, less

opportunities for hedging

Contribution from exceptional hydro production

6



‌Market: Solid Mass Market upholds results







EBITDA €M



Customer Base Mass Market (#/000)

Of which electricity free market +11%





Total Electricity Sales (TWh)









  • Higher mass market segment contribution thanks to electricity customer base

increase and lower retention costs

  • Growth in electricity volumes sales

  • Loss of Safeguard and lower contribution of large customers' gas segment

  • Higher marketing costs



Total Gas Sales (Bcm)

7



‌Circular Economy: WTEs revenues increase and higher volumes in District Heating

ELECTRICITY ENERGY SALES (GWh)

EBITDA €M WTE and other plants

Cogeneration





ENERGY RECOVERY (kton)











Treatment: higher WTEs treatment prices

Collection: new collection services in Milan after tender won

District Heating: volumes increase and higher revenues from white certificates

HEAT VOLUMES (GWht)

8





‌Smart Infrastructures: growth driven by Duereti consolidation and organic RAB increase

EBITDA €M

EE RAB (€M)

(*)

6.0%

5.6%

WACC

Of which Duereti

+44 €M

Of which

+23 €M of allowed gas opex related to 2020-

2024 (ARERA

res. 98 and 87/2025)

Power Network Capacity 8,682 MVA +67% yoy

GAS RAB (€M) (**)

(*)

Regulated Networks: Duereti consolidation and higher electricity allowed revenues thanks to capex deployment Increased power network capacity and resilience

6.5%

5.9%

WACC

(*) Updated RAB according to Resolution 217/2025/R/eel for Electricity Networks and Resolution 274/2025/R/gas for Gas Networks (**) Gas RAB includes assets sold to Ascopiave, deconsolidated from July 1st 2025

9

‌H1 2025 results: from EBITDA to Net Income

€M



Tax rate H1 2025 (29%)

H1 2025:



+7M€ of price adjustment referring to the acquisition of the stake in Tecnoa (WtE Crotone

+1M€ of badwill from Biomax acquisition







H1 2024 1,279 -441 -73 2 -61 -3 703 -207 -18 478 11 489

10

31.12.2024

NFP NFP/EBITDA

5,835 €M 2.5x

‌H1 2025 results: net free cash flow

€M

30.06.2025

NFP NFP/EBITDA

5,325 €M 2.3x

  • (+) Lower retail receivables due to seasonality effect and lower prices



  • (+) Lower safeguard portfolio receivables



Cash Conversion(1)> 65% enabled the full financing of development capex and the distribution of dividends













(*) Change in Working Capital includes also other Assets and Liabilities and Use of Funds Notes: (1) (OCF - maintenance CAPEX) / EBITDA

11

‌2025 Guidance confirmed in the upper end

EBITDA

12

2.17 - 2.20 B

Ordinary Net Income*

0.68 - 0.70 B

*Excluding non-recurring items



‌Shaped to move forward in a dynamic context

Double-digit Capex increase

Enabling the industrial growth envisaged in the Plan

On track with targets

2025E EBITDA and

Ordinary Net Income

in the upper end of the guidance



Solid year-end NFP expected

~2.5x 2025E NFP/EBITDA

Strong cash flow

generation



Strategically positioned and agile, ready to seize valuable opportunities

>65% cash conversion in H1 2025

13





‌Q&A

14





‌Annexes

15

‌EBITDA breakdown by Business Unit





€M

H1 2025

Reported Ordinary

H1 2024*

Reported Ordinary

Reported

Change

Ordinary

A2A

1,223

1,194

1,279

1,269

-56

-4%

-75

-6%

Generation & Trading

420

418

556

552

-136

-24%

-134

-24%

RES

273

274

395

395

-122

-31%

-121

-31%

Flexibility

147

144

161

157

-14

-9%

-13

-8%

Market

229

227

251

252

-22

-9%

-25

-10%

Energy Retail

228

226

251

252

-23

-9%

-26

-10%

o/w Electricity Contribution Margin

187

187

193

193

-6

-3%

-6

-3%

o/w Gas Contribution Margin

172

172

178

178

-6

-3%

-6

-3%

o/w Operating costs and other

-131

-132

-119

-118

-12

10%

-14

12%

Energy Solutions

1

1

0

0

1

n.s.

1

n.s.

Circular Economy

322

323

320

304

2

1%

19

6%

Collection

23

24

37

29

-14

-38%

-5

-17%

Treatment

188

187

179

173

9

5%

14

8%

District Heating

75

74

65

64

10

16%

10

16%

Water Cycle

36

38

39

38

-3

-9%

0

0%

Smart Infrastructures

276

249

186

187

90

48%

62

33%

Electricity Networks

147

146

81

81

66

81%

65

80%

Gas Networks

113

88

90

91

23

26%

-3

-3%

Smart City

5

5

4

4

1

25%

1

27%

Public Lighting

12

11

11

11

1

9%

0

-1%

E-Moving

-1

-1

0

0

-1

n.s.

-1

n.s.

Corporate

-24

-23

-34

-26

10

n.s.

3

n.s.







Note:

(*) 2024 pro forma consistent with the new organizational structure (BU Circular Economy)

16

‌H1 2025 VS H1 2024: profit & loss



€M

H1 2024

H1 2025

Delta vs 2024

Delta %

Revenues

6,091

6,891

800

13%

Operating costs

-4,370

-5,203

-833

19%

Staff costs

-442

-465

-23

5%

EBITDA

1,279

1,223

-56

-4%

D&A

-441

-469

-28

6%

Provisions

-73

-36

37

-51%

ORDINARY EBIT

765

718

-47

-6%

17

Net Financial Expenses

-61

-85

-24

39%

Associates, JV & other

-1

2

3

n.s.

ORDINARY EBT

703

635

-68

-10%

Taxes

-207

-186

21

-10%

Minorities

-18

-23

-5

28%

Group Ordinary Net

Income

478

426

-52

-11%

+/- Special Items

11

8

-3

n.s.

Group Net Income

489

434

-55

-11%

vs 2024

‌H1 2025 VS FY 2024: balance sheet

€M

FY 2024

H1 2025

∆ vs

FY 2024

Tangible Assets 7,517 7,639 122

Intangible Assets 4,299 4,389 90

Shareholdings and Other Non Current Financial Assets 100 108 8

Other Non Current Assets/Liabilities -67 -5 62

Employee Benefits

-214

-205

9

Net Fixed Capital 11,330 11,636 306

Deferred Tax Assets and Liabilities 549 545 -4 Provisions for Risks, Charges and Liabilities for landfills -854 -835 19

Net Working Capital 277 267 -10

Other Current Assets/Liabilities -88 -887 -799

Working Capital and Other Current Assets/Liabilities 114 -612 -726

Current Tax Assets/Liabilities -75 8 83

Total Capital Employed 11,838 11,439 -399

Non Curent Assets/Liabilities held for sale 394 415 21

Equity 6,003 6,114 111



Total Sources 11,838 11,439 -399

Net Financial Position 5,835 5,325 -510

18

‌Energy scenario

UoM

H1 2024

H1 2025

Δ% vs 2024

Brent

$/bbl

83

71

-15%

CO2 - EU ETS cost

€/Tonn

66

73

11%

€/$

€/$

1

1

1%

Brent €

€/bbl

77

65

-16%

PUN Baseload(2)

€/MWh

93

120

28%

PUN Peak(2)

€/MWh

99

124

25%

PUN Off-Peak(2)

€/MWh

90

118

30%

CCGT gas cost(3)

€/MWh

78

101

30%

Spark Spread CCGT_PSV vs Baseload

€/MWh

16

19

19%

Spark Spread CCGT_PSV vs Peakload

€/MWh

22

23

5%

Spark Spread CCGT_PSV vs Off-Peak

€/MWh

13

17

31%

Clean Spark Spread vs Baseload

€/MWh

-10

-10

-2%

Clean Spark Spread vs Peakload

€/MWh

-4

-6

n.s.

Clean Dark Spread vs Baseload(4)

€/MWh

-34

-10

-69%



PSV(1)

€/MWh

31

43

39%

Notes:

  1. Gas at virtual trading point

  2. Hourly average for each month

  3. Based on as at virtual trading point with 51% efficiency; includes transport costs

  4. 35% efficiency - includes cost spread on API2 and transport costs

19



‌Volumes

UoM

H1 2024

H1 2025

Δ vs 2024

Δ% vs 2024

Thermal production

GWh

2,011

3,258

1,248

62%

- CCGT production

GWh

1,971

3,205

1,233

63%

- Oil production

GWh

40

53

12

31%

Renewable production

GWh

3,174

2,399

-775

-24%

- Hydro production

GWh

2,723

1,973

-750

-28%

- Photovoltaic production

GWh

197

207

10

5%

- Wind production

GWh

254

219

-35

-14%

Electricity sales

GWh

11,873

12,828

955

8%

Gas sales

Mcm

1,738

1,552

-187

-11%

Electricity distributed

GWh

5,465

9,410

3,945

72%

Gas distributed

Mcm

1,477

1,468

-9

-1%

Collected waste

Kton

925

955

31

3%

Waste disposal

Kton

2,420

2,421

1

0%

- Material recovery

Kton

603

573

-30

-5%

- Energy recovery

Kton

1,092

1,183

91

8%

- Other

Kton

725

665

-61

-8%

WTE and other plants electricity sold

GWh

1,011

1,105

95

9%

Water Distributed

Mcm

68

33

-35

-52%

Cogeneration electricity sales

GWh

344

367

23

7%

Heat volumes sales

GWht

1,700

1,795

95

6%

20

‌Financials as of 30th June 2025

Sound financial structure

13%

21%

H124

H125

79%

Fix

87%

Float

Duration and Average Cost of debt

Duration

5.4

Years

Cost of debt(1)

2.7%

@H1 2025

Steady Liquidity Position (€M)

H124

H125

1,893

1,813

4,253

3,998

2,360

Coverage Ratio(2) > 1.2x

Cash & Cash Equivalent

2,185

Coverage Ratio(2) > 1.2x

Undrawn Committed Lines

Agency

Rating

Outlook

(3)

BBB

Stabile

(4)

Baa2

Positive





Strong commitment to current credit rating



  1. Financial expenses reported / average gross debt (excluding Hot Money & RCF)

  2. This ratio measures the coverage of expected cash flows in the next 12 months given the current Liquidity position and the expected obligations

  3. December 2024: S&P's confirms Outlook Stable, S&P has also revised downward the threshold for maintaining the current rating of FFO/Net Debt to 24% from 25%

  4. May 2025: Moody's confirms Rating Baa2, Moody's has also revised Outlook from Stable to Positive following the update of the sovereign Rating

21

‌Indebtedness redemption profile H1 2025 (€M)

IFRS 16

Bonds

Short Term Loan

Long Term Loan

618

21

7

5

14

5

3

26

496

664

497

497

299

397

495

493

499

322

114

109

95

57

148

175

27

27

24

82 1

4

2

3

32

40

40

647

10

2025 2026 2027 2028 2029* 2030 2031 2032 2033 2034 2035 2036 2037



(*) Not included 750€M Green Hybrid Bond NC5.25

22

‌Sustainable Finance Highlights

ESG Debt and targets at 30 June 2025

Highlights 2019-2025

Inaugural European Green Bond First Green Bond with Eligible Green Projects based First EuGB ever issued in the World on Green Financing Framework

Jul 19

Jan 25

The new Sustainable Finance Framework combines the UoP approach with the Sustainability-linked approach

Jul 24

Jun 21

Jun 24

Financial strategy

linked to the Sustainability

Jan 23

5th Green Bond with EU

Taxonomy-eligible UoPs

Oct 21

Sep 22

Feb 22

Jun 22

4th Green Bond with EU

Taxonomy-aligned UoPs

Mar 22

A2A updates the Sustainable Finance Framework to reflect the revised KPIs and targets in line with its Strategic Plan

3rd Green Bond with EU Taxonomy-aligned UoPs

2nd SLB with KPI Renewable Energy Capacity Installation



A2A is the 1st Italian corporate to adopt a Framework that combines the UoP approach with Sustainability-Linked principles



120%

1st Hybrid Green Bond with EU

Taxonomy-eligible UoPs



100%

80%

60%

First SLB with KPI Scope 1 CO2Emission Intensity

Jul 21



40%

20%

0%

Effective Target

Percentage of ESG Debt of total (%)

2nd Green Bond with UoPs aligned with the EU Taxonomy



83%

78%

70%

58%

44%

>80%

>90%

100%

+6%

vs. H1 2024

FY 2021 FY 2022 FY 2023 FY 2024 H1 2025 2027 2030 2035

ESG Debt

26%

Green Bond

SLB



2025 Global Capital Bond Awards

Most Innovative Corporate

18th June 2025



Most Impressive Corporate Green, Social or Sustainable Bond Issuer

18th June 2025



18%

Green Loan

56%

23

‌Contacts

A2A Investor Relations Team

E-mail: ir@a2a.it Phone: +39 02 7720 3974

https://www.gruppoa2a.it/en/investors



Disclaimer

A2A S.p.A. published this content on July 31, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 31, 2025 at 13:15 UTC.

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