A2Aan Italian multi-utility listed on Euronext Milan, has the Update of the 2024-2035 Strategic Plan was approvedwith industrial and economic-financial objectives confirmed but a dividend policy revised upwards. In the new plan, the ecological transition is considered a choice of sustainable competitiveness, while among the new features there is a Widespread Share Ownership Plan which will be proposed at the next Shareholders’ Meeting.
Investments
The Piano update confirms investments of 22 billion euros divided into 6 billion for the Circular Economy and 16 billion for the Energy Transition: approximately 8.1 billion are allocated to the Energy segment, of which 4.7 billion relating to the development of new renewable capacity and the creation of storage, 1.5 billion allocated to flexibility and 1.9 billion to support customer growth; approximately 4.4 billion relating to the Environment Business Unit, of which 4 billion relating to the Treatment sector and 0.4 billion relating to the Collection business; approximately 8.5 billion relating to the Smart Infrastructures BU, of which 7.0 billion relating to the strengthening of distribution networks; approximately 1.4 billion relating to the Corporate Business Unit.
A2A aims to maintain a leadership position in the environmental sector with over 7 million tonnes of waste treated by 2035 in over 70 plants, of which 11 new ones are currently in the pipeline. The development of district heating remains a key lever for the decarbonisation of urban contexts.
Thanks to the investments planned in the distribution networks, in 2025 the RAB Electric will overtake RAB Gasalso thanks to the acquisition of assets in the provinces of Milan and Brescia expected at the end of 2024. With a target of 5.7 GW of renewable capacity installed by 2035, A2A continues to support the electrification of consumption and the development of RES.
Financial goals
With a EBITDA ordinary 2023 amounting to 1.9 billion, the Update of the 2024-2035 Strategic Plan sees a strengthening of the Group’s growth in 2024 with an expected EBITDA of 2.3 billion. EBITDA stands at 2.4 billion in 2027, 2.6 billion in 2030 and 3.3 billion in 2035.
THE’Ordinary Net Profit is expected at 0.8 billion in 2024 (0.6 billion excluding the scenario effect), 0.7 billion in 2027 and 0.8 billion in 2030, while it stands at over 1 billion in 2035. The CAGR – net of the scenario effect – is equal to 12% in the period 2023-27, while it is equal to 7% in the period 2023-35.
In terms of profitability, the update of the Strategic Plan for the period 2024-35 shows a ROI average greater than 9%, a ROE average of 12%. The expected total shareholder return (TSR) is approximately 12%.
The most generous dividend policy
The progress in the Group’s structural growth path has allowed a update of the dividend policy. The new policy provides for sustainable growth of the dividend per share of at least 4% per year, compared to the 3% per year envisaged in the previous Plan presented in March 2024.
Greater financial sustainability
Industrial growth, together with careful financial discipline, limits incremental debt and reduces the NFP/EBITDA ratioexpected at a level always lower than 2.7x. In arch Piano la average duration of the debt it is always expected beyond 5 years, thus reducing the risk of refinancing. The cost of debt, thanks to careful management, is kept below 2.8% in the medium term, an improvement compared to the March Plan, and on average below 3.4% in the long term. The Group’s commitment to maintaining the current one is confirmed rating credit.
Mazzoncini: towards energy autonomy in 2035
“Let’s look to 2035 with a Plan that combines sustainable value generation, decarbonisation, innovation and contribution to energy autonomy of the country – comments theCEO Renato Mazzoncini – These are strategic choices that guide our businesses and are confirmed in the Draghi Report for the relaunch of European competitiveness. Our long-term vision has allowed us to be solid in the face of the geopolitical and economic uncertainties of this historical phase, and to obtain excellent results, exceeding forecasts. For this reason we were able to make new investments by bringing forward construction sites and revising dividends for our investors upwards.”
“After having allocated significant resources for a broad welfare plan to support parenting for the Group’s employees, we have decided to propose at the next Shareholders’ Meeting a Widespread Share Ownership Plan – he added – We want to involve all colleagues in the company’s growth path and share with them the results of a work built together”.
