Debt Investor Presentation DISCLAIMER IMPORTANT NOTICE STRICTLY - - PowerPoint PPT Presentation
Debt Investor Presentation DISCLAIMER IMPORTANT NOTICE STRICTLY - - PowerPoint PPT Presentation
A2A Debt Investor Presentation DISCLAIMER IMPORTANT NOTICE STRICTLY CONFIDENTIAL By accessing this investor presentation, you agree to be bound by the following limitations. This presentation has been prepared by A2A S.p.A. (A 2 A or
DISCLAIMER
IMPORTANT NOTICE – STRICTLY CONFIDENTIAL By accessing this investor presentation, you agree to be bound by the following limitations. This presentation has been prepared by A2A S.p.A. (“A2A” or the “Company”). This document has been prepared by A2A solely for investors and analysts. The information set out herein, including forward looking statement, is current only as at the date of this document and is not intended to give any assurances as to future results and it may be subject to updating, revision, verification and amendment and such information may change materially. A2A is under no obligation to update or keep current the information contained in this presentation, including forward looking statement s and any opinions expressed in them is subject to change without notice. Market data used in the presentation not attributed to a specific source are estimates of the Company and have not been independently verified. The content of this document is of purely informative and provisional nature and the statements contained herein have not been independently verified. This information is given in summary form and does not purport to be complete. Certain figures included in this document have been subject to rounding adjustments; accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an arithmetic aggregation of the figures which precede them. A2A has not authorised the making or provision of any representation or information regarding A2A or its subsidiaries other than as contained in this document. Any such representation or information should not be relied upon as having been authorised by A2A. None of A2A or any of its respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence
- r otherwise) for any loss whatsoever arising from any use of this presentation or its contents, or otherwise arising in connection with this presentation.
No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the
- pinions contained herein.
The information in this presentation is confidential and this presentation is being made available to selected recipients only and solely for the information of such recipients. This presentation may not be reproduced, redistributed or passed on to any other persons, in whole or in part. This presentation is for information purposes only and does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of A2A or its subsidiaries nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This presentation does not constitute a recommendation regarding the securities of A2A or its subsidiaries. This presentation and the information contained herein are not an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States (within the meaning of Regulation S under the United States Securities Act of 1933, as amended). This presentation is for distribution in Italy only to "qualified investors" (investitori qualificati), as defined pursuant to Article 100 of Legislative Decree no. 58 of 24 February 1998, as amended and restated from time to time (the Financial Services Act), as implemented by Article 34-ter, paragraph 1(b) of CONSOB Regulation no. 11971 of 14 May 1999, as amended and restated from time to
- time. This presentation is being communicated in the United Kingdom only to persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 and to persons to whom it may otherwise be lawful to communicate it to (all such persons being referred to as relevant persons). Some information contained herein and other material discussed at the meetings may include forward-looking information based on A2A’s current beliefs and expectations. All statements other than statements of historical fact, contained herein regarding the A2A’ strategy, goals, plans, future financial position, results of operations future performance and business, projected revenues and costs or prospects are forward-looking statements. Such statements may include, without limitation, any statements identified by the use of terminology such as "anticipates", "believes", "estimates", "expects", "intends", "target", "aim", "may", "plans", "projects", "will", "can have", "likely", "should", "would", "could" and other words and terms of similar meaning or the negative
- thereof. These statements are based on current plans, estimates, expectations, 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 which may not be predicted or quantified or may be beyond the Company’s control 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.
3
Million €
2017 2016 2015
Revenues 5,910 5,093 4,921 Reported EBITDA 1,211 1,231 1,048 Ordinary EBITDA 1,135 1,033 1,022 Group net income 293 232 73 Group ordinary net income 413 377 278 CAPEX 450 349 317 Distributed Dividend 180 153 126 Dividend Yield (%) 4.1 4.2 3.8 Net Capital Employed 6,239 6,415 6,156 Net Financial Position
- 3,226
- 3,136
- 2,897
Net Equity 3,013 3,279 3,259 Market cap. (year-end) 4,831 3,853 3,929 Manpower (units) 11,280 13,494 12,083
FINANCIAL HIGHLIGHT
A2A Highlights
A2A is the Italy's largest local utility and the most diversified utility among local utilities.
The Group operates throughout Italy, predominantly in Lombardy
LARGEST TERRITORY AGGREGATION 80 companies
Growth oriented multi-utility, delivered industrial and financial value
2017 NFP/EBITDA 2,7x 2017 D/E 1,1
4
1,231 1,211
2016 2017
EBITDA
- 2%
232 293
2016 2017
GROUP NET INCOME
+26%
377 77 413 13
2016 2017
GROUP ORDINARY NET INCOME
+10%
1,033
1,135
2016 2017
ORDINARY EBITDA
+10%
349 450
2016 2017
CAPEX
+101
REVENUES
+16%
5,093 5,910
2016 2017
NET FINANCIAL POSITION
- 226
+90
3,136 2,910 316 3,226
2016 2017 Change of perimeter 2017
0.0492 0.0578
2016 2017
DPS
17%
€
2017 ACHIEVEMENTS
ORGANIC GROWTH WASTE
Ongoing developments in investments for treatment plants
MARKET
Further expansion
- f the free market
customer base
NETWORKS
Successful participation in the first gas distribution tender (Milano1)
GENERATION
Solid performance
- f the generation fleet,
in particular CCGT plants
EXTERNAL GROWTH
LGH - 12M fully consolidation: strong synergies from the industrial partnership Set up of A2A Rinnovabili and M&A First step in PV Renewables Northern Lombardy Multiutility: Start of the partnership project Geographical focus: sale of stake in Montenegrin EPCG
2017 Bulletin Board: shaping the future today
€M
5
9M 2018 Consolidated Results
A2A consolidates the accounts of ACSM-AGAM group on a line-by-line basis, starting from July 1, 2018. The ACSM-AGAM group is the multi-utility company of Northern Italy resulting from the combination of the Como, Monza, Lecco, Sondrio and Varese public utility companies.
6
A2A FORMS PART OF THE FOLLOWING INDICES
FTSE MIB STOXX Europe EURO STOXX MSCI Europe Small Cap WisdomTree Utilities S&P Developed Ex-US
ETHICAL INDICES
ECPI Euro ESG Equity Ethibel Sustainability Index Excellence Europe EURO STOXX Sustainability Index Euronext Vigeo Europe 120 Solactive Climate Change Index Standard Ethics Italian Index
A2A 2017 figures (Borsa Italiana)
Shareholding structure listed in Milan Stock Exchange
Municipality of Milan and Brescia: shareholding pact on 42%
Note: At December 31, 2017
Indices
Moreover, A2A has been included in the Ethibel Excellence Investment Register and in the Ethibel Pioneer Investment Register.
AT DECEMBER 31, 2017
MUNICIPALITY OF BRESCIA MUNICIPALITY OF MILAN MARKET TREASURY SHARES
49.2 25.0
%
25.0
0.8
MARKET CAPITALISATION
AT DECEMBER 29, 2017:
€ 4,831 m AVERAGE CAPITALISATION € 4,455 m AVERAGE VOLUMES 9,729,351 AVERAGE PRICE: 1.422 €/share MAXIMUM PRICE: 1.635 €/share MINIMUM PRICE: 1.232 €/share NUMBER OF SHARES: 3,132,905,277
Tickers: Bloomberg – A2A:IM Reuters – A2.MI
A2A stock is also traded on the following platforms: Chi-X, BATS, Turquoise, Equiduct, Sigma-X, Aquis, BOAT OTC, LSE Europe OTC, BATS Chi-X OTC
7
A2A at a glance Well Balanced Business Mix
2017 Ordinary EBITDA (1)
WASTE MARKET(2) NETWORKS GENERATION & TRADING NETWORKS HEAT
1st energy producer from WTE plants Leader for quality and customer satisfaction Incumbent in the key areas 1st domestic
- perator
2 GW hydro installed capacity
251 €M 22% 173 €M 15% 309 €M 26% 78 €M 7% 353 €M 30%
Collection and street sweeping Electricity and gas sales
- free market
- regulated market
Electricity distribution Cogeneration heat recovery and sales Fuel sourcing Urban Waste Treatment Material Recovery Electricity and Heat production Public Lighting Gas distribution Heat Distribution Power generation (Thermoelectric and RES) Industrial Waste Treatment New Energy Solutions (Energy Efficiency, E-mobility and Smart City) Integrated Water Cycle Whole-sale & Trading
(1) (1) Or Ordina nary ry EBI BITD TDA Equal to 1,164 €M, M, calcula ulate ted d as Re Report rted EBITD ITDA (1,211 €M) M) net of non recurr urring ng items (64 €M), EBITDA from “Corporate” (-29 €M) M), EBITD ITDA from EPCG CG (12 €M) M). Put option on EPCG CG stake was exerc rcised d by A2A in July 2017 (2) (2) Ne New perim rimete ter r of the old Energ rgy Re Retail BU, U, includ uding ng also Energ rgy Efficiency, Public Light hting ng, Sma mart rt City ty and E-Mo Mobil bility.
VALUE FROM END TO BEGINNING MORE SOLUTIONS TO INVOLVE CUSTOMERS SMARTER AND MORE RELIABLE FLEXIBLE AND GREENER ENERGY
8
A2A at a glance Italian Geographical Presence
G G G G G
WASTE
Waste collection Treatment plants Biogas/Biomass plants Waste-to-Energy
E G W PL C DH
NETWORKS
Electricity Gas Water Public Lighting
- Cogen. & thermal plants
Thermal solar plants District Heating
A2A operates throughout Italy, predominantly in Lombardy
G PL G DH E G W G W E G E DH G G DH DH DH DH G G PL PL PL C C C C C C C C C C DH
GENERATION
Hydroelectric CCGT Coal Fuel Oil Solar
Technological partnerships abroad on waste treatment plants (UK, Spain and Greece)
9
A2A growth – Acquisition Strategy on PV plants
Lombardia 1 MW Piemonte 2,9 MW Trentino AA 0.6 MW Sicilia 0,9 MW Emilia Romagna 8 MW Marche 17,8 MW Toscana 0,9 MW Puglia 15,6 MW Lazio 6,5 MW
NOVAPOWER REENERGY IMPAX
- October 2017
- 17,8 MW
- 16 plants
- 8 SPV
- EBITDA 7€M
- September 2017
- 17 MW
- 18 plants
- 5 SPV
- EBITDA 6€M
- February 2018
- 15,7 MW
- 5 plants
- 5 SPV
- EBITDA 6€M
TALESUN potential acquisition
- term sheet November 2018
- 43,2 MW
- 39 plants
- 9 SPV
- EBITDA 9€M
- Potential joint venture
Portfolio of 43 PV plants Total installed power 54,1MWp
10 NORTHERN LOMBARDY MULTIUTILITY
Benefits of industrial partnership:
- Sharing technical and management skills
- Optimization of industrial
and financial position Preservation of the identity of existing companies Enhancement of investment capacity Improvement of quality standards and service level
ASPEM LARIO RETI HOLDING AEVV
A2A LGH
ACSM-AGAM
Industrial entities strongly rooted in our territory
~60-70 €M net additional EBITDA fully consolidated Almost complete coverage of Lombardy Open to new aggregation opportunities
A2A growth – Aggregation Strategy
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A2A is a large group of companies
A2A GENCOGAS 100%
GENERATION
A2A ENERGIEFUTURE 100% LINEA GREEN (1) 100% A2A ALFA 70% ERGOSUD 50% PREMIUMGAS 50% A2A ENERGIA 100% A2A ENERGY SOLUTIONS 100% A2A ILLUMINAZIONE PUBBLICA 100% LINEA PIÙ (1) 100% METAMER 50% LUMENENERGIA 92,7% CONSUL SYSTEM 75%
MARKET
A2A AMBIENTE 100% LINEA AMBIENTE (1) 100% LINEA GESTIONI (1) 100% AMSA 100% LOMELLINA ENERGIA 80% APRICA 100%
WASTE
A2A CICLO IDRICO 100% A2A CALORE E SERVIZI 100% ASPEM 90% PROARIS 60% UNARETI SERVIZI METRICI 100%
NETWORKS
LD RETI (1) 90,85% UNARETI 100% RETRAGAS 91,6% ASVT 74,8% CAMUNA ENERGIA 89% A2A SMART CITY 100%
SMART CITY
ACSM - AGAM (2) 45,33% LINEA GROUP HOLDING 51%
OTHER COMPANIES
LINEA COM 96,17% (1) (1) Share reho holding dings held throug ugh Linea Group up Ho Holding ding S.p.A. (2) (2) ACSM-AGAM share res at the end of Sell-Out Out Procedure ure (as of 25 Oc Octobe ber r 2018)
The Group includes: 80 companies @30.09.18 Starting from July 2018, aggregation of Northern Lombardy Multiutility
A2A ENERGIE RINNOVABILI 100%
12
Financial Strategy: Cost reduction and high duration
DEBT STRUCTURE AND MATURITY
DEBT BREAKDOWN BY INTEREST
at 31/12/2017
BONDS LOANS
DEBT BREAKDOWN BY SOURCE
at 31/12/2017
FIXED RATE VARIABLE RATE
82
STATISTICS RELATING TO DEBT AT 31/12/2017
DEBT ITEMS
million euro
ACCOUNTING BALANCE 31/12/2016 ACCOUNTING BALANCE 31/12/2016 PORTIONS MATURING WITHIN 12 MONTHS PORTIONS MATURING BEYONDS 12 MONTHS PORTION MATURING IN 31 dic 2019 31 dic 2020 31 dic 2021 31 dic 2022 beyond BONDS
2,527 2,995 345 2,650 509 350 498 1,293
BANK LOANS AND OTHER
1,268 943 92 851 90 138 89 86 448
TOTAL 3,795 3,938 437 3,501 599 138 439 584 1,741
%
18 24 76
%
FLEXIBILITY
FINANCIAL STRATEGY
provide the Company with the right instruments to take potential market opportunities, in a prompt and efficient way
DIVERSIFICATION
- ptimize financial sources
and assess/select at any time the most economical and/or best available
LIQUIDITY
maintain an adequate liquidity buffer in terms of cash and available committed lines to cover planned cash outlays and absorb low- probability events
RISK MANAGEMENT
manage in a proactive way the interest risk with the main purpose to mitigate the effects
- f market volatility
TOTAL GROSS DEBT 3.9 €Bn AVERAGE COST OF DEBT ~ 3.1% AVERAGE MATURITY 5.2 yrs LIQUIDITY POSITION
- f which:
CASH UNDRAWN COMMITTED LINES AND LOANS
1.4 €Bn
0.7 €Bn 0.7 €Bn
STATISTICS RELATING TO DEBT AT 30/09/2018* TOTAL GROSS DEBT 3.9 €Bn AVERAGE COST OF DEBT ~ 3.0% AVERAGE MATURITY 4.5 yrs LIQUIDITY POSITION
- f which:
CASH UNDRAWN COMMITTED LINES AND LOANS
1.7 €Bn
1.1 €Bn 0.6 €Bn
*Does es not not inc nclu lude e ACSM CSM-AGAM
13
Bonds and EMTN Programme
On 1 March 2018 the Board of Directors of A2A approved a framework resolution (i) revoking for the portion not performed the resolution previously taken on 10 November 2016 and (ii) authorising the issue of one or more unsubordinated, unsecured and non- convertible notes, under the EMTN Programme, up to an aggregate amount
- f Euro 1 billion,
by 30 April 2020. The bonds to be issued
- n the basis of the
Programme are placed to institutional investors Liability management executed to optimized debt duration and cost of debt The adoption of the EMTN is part of the A2A Group’s medium-term financial strategy, which is aimed at lengthening the average life of the Company’s
- utstanding debt and
at maintaining an adequate financial flexibility in order to efficiently manage the future debt maturities, to support the Company’s rating Program amounts to 4 billion, of which 1,438 million euro still available as
- f today.
14
October 2017
- ISSUE of a ten-year bond for a total amount of 300 million euro under the
Euro Medium Term Notes Programme.
- TENDER OFFER over A2A outstanding €750,000,000 4.500 per cent.
Notes due 28 November 2019 (of which €510,703,000 remain outstanding) and its outstanding €500,000,000 4.375 per cent. Notes due 10 January 2021 (of which €351,457,000 remain outstanding)
Debt maturities breakdown Recent capital markets transactions
343
2018
602 139 299 44
2019
440 586 385 365 365 50 348 254 91 139 89 86 85 65 65 50 48 145
2020
511 351 500 300 300 300 300 109
2021 2022 2023 2024 2025 2026 2027 Beyond 2027
Loans Bonds A2A Bonds LGH
March 2017 Private placement with a limited number of qualified investors Euro 300 million notes with a seven-year maturity due in March 2024, under its Euro Medium Term Notes Programme. December 2016 TENDER OFFER over A2A outstanding €750,000,000 4.500 per cent. Notes due 28 November 2019 and its outstanding €500,000,000 4.375 per cent. Notes due 10 January 2021
15
Bonds and EMTN Programme
Issue quantity (EUR) Outstanding amount (EUR) Annual coupon Issue date Maturity date Issue price Re-offer yield Euro Bond 2027
300,000,000 300,000,000 1.625% 19/10/2017 19/10/2027 98.700 1.768%
Euro Bond 2025
300,000,000 300,000,000 1.750% 25/02/2015 25/02/2025 99.221 1.836%
Private Placement 2024
300,000,000 300,000,000 1.250% 16/03/2017 16/03/2024 99.774 1.284%
Private Placement 2023
300,000,000 300,000,000 4.000% 04/12/2013 04/12/2023 99.539 4.057%
Euro Bond 2022
500,000,000 500,000,000 3.625% 13/12/2013 13/01/2022 99.561 3.688%
Euro Bond 2021
500,000,000 351,457,000 4.375% 10/07/2013 10/01/2021 99.323 4.487%
Euro Bond 2019
750,000,000 510,703,000 4.500% 23/11/2012 28/11/2019 99.718 4.548%
Euro Bond 2018 (LGH)
300,000,000 299,500,000 3.875% 28/11/2013 28/11/2018 99.444 4.000%
16
Rating overview
Moody's upgrades A2A S.p.A.'s ratings to Baa2; stable outlook, April 2018. The rating action reflects:
- A2A's track record of improved financial and operating performance
as evidenced by funds from operations (FFO)/net debt and retained cash flows (RCF)/net debt ratios in 2017 of 25.8% and 21.3% (vs. 16.8% and 14.1% in 2014), respectively;
- the increase in baseload power prices since early 2016 which will gradually
filter through the company's earnings;
- A2A's commitment to maintaining credit quality and Moody's view that the
company has flexibility to mitigate unexpected negative pressures […]and maintain metrics in line with the ratio guidance for the Baa2 rating.”
A2A’s rating reflects: Business Risk: SATISFACTORY
Expectation that the company will continue to strengthen its positions in regulated and more stable activities, while posting funds from operations (FFO) to debt above 20% over 2018-2019” and “successful cost reduction plan with €130 million of cost savings already achieved over 2015-2017
Liquidity: STRONG
The group's liquidity as strong, based on our view of the group's proactive financing and healthy cash flow generation and A2A has sound bank relationships, prudent financial discipline, and proven access to the debt capital markets Rating: Baa2, Not on Watch Rating: BBB/Stable/A-2
17
Enterprise Risk Model supports management actions
The Risk Management Model – Process and Activities
REGULAR IDENTIFICATION AND UPDATING OF THE RISKS to which the Group is exposed RISK ASSESSMENT PROCESS carried out through the involvement of all Group structures, risk owners and risk specialists, which includes:
- update of risk scenarios related
to activities
- risk scoring
- establishment of the relative
controls and mitigation plans DEFINITION OF RISK PRIORITIES AND RISK REPORTING submitted to the top management for approval CONSTANT MONITORING OF MITIGATING ACTIONS PROGRESS, to check their effectiveness on risks mitigation and prevention BALANCE SHEET DISCLOSURE (“Bilancio Integrato” under the D.Lgs 254/2016 regulation)
1 2 3 4 5
The methodology adopted is characterized by the following steps: The A2A Group has a risk assessment and reporting process which is based on the Enterprise Risk Management method(1) and on the best risk management practice, in compliance with the Corporate Governance Code. The model, operative since 2010 and far from being a static reference, is subject to periodic revision consistent with the evolution of the Group and the context in which it operates. RISK – External, Internal and Strategic Risk
CHANGES IN LAWS AND REGULATIONS MACRO-ECONOMIC SITUATION BUSINESS INTERRUPTION COMMODITY PRICE COUNTERPARTY CREDIT RISK INTEREST RATE LIQUIDITY RATING DEFAULT AND COVENANT ACQUISITIONS, INTEGRATION AND BUSINESS COMBINATION LEGAL PROCEEDING NATURAL EVENTS ENVIRONMENTAL TENDER AND CONCESSIONS ICT INFRASTRUCTURE AND SECURITY SOCIAL AND ENVIRONMENTAL CONTEXT FISCAL AND TAX-RELATED COMPLIANCE
(1) This method follows the framework set by the Committee of Sponsoring Organizations of the Treadway Commission (CoSO report)
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New strategic Guidelines
a2a
T
2018 2022
T
Transformation
a2a
E
2018 2022
E
Excellence
a2a
C
2018 2022
C
Community
Business strengthening & change agile organization, leader in operational excellence attract and empower people engage external ecosystem
Sustainability
inspiring priciple of enterprise development
Over 350 innovation concepts evaluated will be translated into the experimentation
- f about 50 new initiatives
A2A will make a significant effort to undertake, in its 4 reference businesses, the transformation actions necessary to respond to the identified market trends (detailed plan in the next pages) Starting from the positive experience
- f the EN&A Project, the Mistral Project
has been launched: focus on operational excellence through a bottom-up redesign
- f processes and the transformation
- f the managerial culture.
Moreover, strong boost in Capex for digitalization and technological innovation (>500 €M in the period)
from to REGENERATION
Active role in the energy market transformation
RELAUNCH
Consistent industrial growth Selective external growth
RESHAPE
Public lighting, smart city, energy efficiency
2017-2021
19
A2A Sustainability embedded in the Strategic Plan
GENERATION MARKET WASTE NETWORKS
60+ core goals
built on our sustainability pillars
- The shift to a traditional governance model, occurred in June 2014, facilitates decision making and emphasizes the central role of the Board of Directors
- 100% executives with sustainability MBOs (weight increased from 5% to 10% for the CEO/Managing Director)
- A2A adopts a prudent energy risk policy, part of its ERM model, whose purpose is to further develop and integrate risk management into the business process
% sorted collection New recycling plants Project on reduction/ reuse/recycle Water network losses Depurated waste water Digital users # LED lighting points EV charging stations Contact centre quality Smart bins Smart meter Service interruption Smart grid
GOVERNANCE
CO2 emissions reduction Energy efficiency projects Green energy sold to Mass Market Low-impact vehicles DH users Dispersed heat recovery and DH non-fossil sources Smart city projects Banco dell’Energia step 2 Roadwork site inspections Reduction of the accident rate Environmental education
CIRCULAR ECONOMY DECARBONIZATION SMART GRID AND SERVICES PEOPLE INNOVATION
E S G
Integration of Sustainability Plan and Financial BP @2022 in line with 2030 sustainability goals
August 2018 - A2A signs the first Credit Line in Italy linked to the Group’s Sustainability Policy and the Standard Ethics Rating
20
A2A Sustainability embedded in the Strategic Plan
100 82 84 31
CIRCULAR ECONOMY
MATERIAL RECOVERY RATE IN A2A PLANTS ON TOTAL WASTE COLLECTED
2015 2016 2017 2022 % 394 419 420 445
DECARBONIZATION
CO2 /kWh CARBON INTENSITY
2015 2016 2017 2022 550 356 269 227
SMART GRID AND SERVICES
ONLINE MEMBERS OF A2A ENERGIA COMMUNITY
2015 2016 2017 2022 20 5 5
PEOPLE INNOVATION
SMART WORKING % on total employees applicable
2015 2016 2017 2022
g/ kWh
k %
21 A2A Asset Portfolio Consolidated Income Statement Consolidated Balance Sheet Consolidated Net Financial Position A2A strong Commitment to Sustainability
Data Annexes
Financial Report and Economic data and News are all available on A2A website: http://www.a2a.eu/en/investor/
22
A2A Asset Portfolio as of 31 December 2017
23
Consolidated Income Statement
Note: Group net income adjusted for the impact of extraordinary items: 2017 = 413 €M; 2016 = 377 €M; 2015 = 278 €M; 2014 = 175 €M; 2013 = 156 €M; 2012 = 116 €M; 2011 = 165; 2010 = 243 (1) The figures at December 31, 2016 include the economic effects deriving from the LGH Group’s PPA and the reclassification for the purposes of IFRS 5 of the EPCG Group’s income statement items. (2) EPCG not included in Group EBITDA as of 2016 restated results
24
Consolidated Balance Sheet
25
Consolidated Net Financial Position
26
A2A strong Commitment to Sustainability
Listening to the needs of stakeholders in the various territories in which A2A operates. Identification of the material aspects for planning and reporting Definition of a Sustainability Policy with objectives through to 2030 and a Sustainability Plan integrated with the Business Plan. The Policy is based on 4 pillars, crucial to A2A’s business and consistent with the international approach given by the UN Reporting to external stakeholders during focussed meetings or through the Integrated Report and Territorial Sustainability Reports Implementation of practices and adoption of instruments that are consistent with the sustainability goals prefixed in the value creation process
- Stakeholder Engagement:
more than 270 initiatives involving external and internal stakeholders. The forumAscolto programme, the multistakeholder feedback initiative launched by A2A in 2015 aimed at understanding the needs
- f the communities where it operates, continued in 2017
- Materiality Evaluation:
A2A Group materiality matrix was updated A2A has an active participation in national and international associations and networks
- n matters of sustainable
development.
WINNER IN 2017 SUSTAINABILITY NETWORKS
Circular Economy: Sustainably manage waste during its life cycle Decarbonization: Contribute to achieving national and EU targets for the reduction
- f greenhouse gas emissions
Smart grid and services: Increase grid reliability through technological innovation People Innovation: Actively contribute to the welfare of the community and the improvement
- f working conditions
INVESTMENTS CLASSIFICATION GENERATION & TRADING NETWORKS AND HEAT WASTE CORPORATE TOTAL Emission Reduction 2.1 4.6 6.4
- 13.1
Energy efficiency 0.4 4.1 25.8
- 30.3
Renewables 13.2 5.3 7.6
- 26.1
Innovation 0.5
- 7.7
0.4 8.6 Total 16.2 14 47.5 0.4 78.1
Governance and Tools
- Sustainability Policy
- Territory and Sustainability Committee: the Committee has the task to assist with
information, advice and proposals the Board of Directors,the Chairman and CEO of the Group in defining guidelines, orientations and initiatives
- Code of Ethics
- Organisation, Management and Control Model (according to 231/01 Law)
- Policy for Quality, Environment and Safety and Systems for their Management
- Sustainability Issues for Risk Management: Climate Change impacts
INTEGRATED REPORT
A2A 2017 Integrated Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards and, for some indicators, it complies with GRI-G4 Electric Utilities Sector Supplement. The Report considers six forms of capital (Human, Financial, Relational, Intellectual, Manufacturing and Natural), in accordance with the International Integrated Reporting Council (IIRC) framework. Moreover, in 2015, A2A began, first in Italy, publishing sustainability reports with reference to the specific territories in which it operates, undertaking a path toward the community and extending its stakeholder engagement model. During 2017 six Territorial Sustainability Reports were published (Milan, Brescia, Bergamo, Varese, Valtellina and Valchiavenna and Friuli Venezia Giulia).
The Integrated Report 2017 is available on A2A website