a2a2016

CompanyProfile

October 2016

This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.

Our Results• Positive 2015 results were achieved despite the

asset write-downs sustained and resulting fromboth the continuing economic crisis in theItalian thermoelectric sector

• With respect to these external dynamics, theGroup reacted by continuing with the initiativesto improve operational efficiency, which helpedto sustain the profitability

• Debt reduction continued posting verysatisfactory results also in 2015

• A dividend of 0.041 euros per share, up by 13%,was submitted to AGM approval

• A2A medium-term financial strategy is aimed atlengthening the average debt maturity,maintaining an adequate financial flexibility andlowering the cost of debt to support theCompany rating

• A2A adopts a prudent energy risk policy, part ofits Enterprise Risk Management model, whosepurpose is to further develop and integrate riskmanagement activities into the business process

Our World• A2A is active in energy (electricity and gas),

cogeneration and district heating, waste anddistribution networks – a businessdiversification which spans from regulated tomarket exposure thus considerably lowering itseconomic risk profile

• Born in 2008 from the merger of AEM, ASMand AMSA, A2A operates throughout Italy,predominantly in Lombardy

• The business units of the company have a firstclass asset base - both plants and networks.Long term concessions increase visibility

• A2A business model is very flexible. It allowsfor optimizations both in the business units andacross them

• At international level A2A mainly operates inMontenegro through EPCG (electricity)

• The current strategy has been set out in the2016-2020 Strategic Plan. The main lines of thePlan are the following:

- Restructure: substantial reduction inthermoelectric power generation exposure

- Relaunch: growth acceleration in waste, energyretail, smart network systems and water

- Reshape: building options in energy efficiency,smart city and “energy community” services

- Discipline in operations and capital structure- Dialogue & engagement with key stakeholders- Digital & technological transformation

- Additional benefits from local aggregations

Our Responsibilities• A high weight of green component

characterizes A2A asset portfolio. Large scalerenewable production (hydroelectric, WTE),high efficiency production (cogeneration withlower CO2 emissions) and innovativetechnologies to increase energy savings (LEDlighting). A2A may also leverage on a large andloyal customer base as a natural hedge for itsenergy portfolio.

• These mark the Company commitment tosustainability, further strengthened in 2015at governance level. Sustainability representsa yet untapped source of value for investors

• The shift to a traditional governance model,occurred in June 2014, facilitates decisionmaking and emphasizes the central role of theBoard of Directors

• Milan and Brescia cities are the majorshareholders with a joint control

A2A - THE LEADING ITALIAN MULTI-UTILITY

Waste

n. 1 for electricity produced by WTE plants

Networks

incumbent in its 3 key gas areas

EPCG

∼0.7 GW hydro installed capacity (76% of total)

Generation&Trading

∼2 GW hydro installed capacity in Italy

Energy Retail

market leader for quality and customersatisfaction

Cogeneration and District Heating

first domestic operator

Business units: top strengths

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This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.

A2A AT A GLANCE

Local

utilities

Market capitalisation atDecember 31, 2015: € 3,929 m

A2A in 2015

Italian utilities 2015 EBITDA

A2A shareholding structure(2)

CURRENT CORPORATE CREDIT RATING

Standard & Poor’s

BBB/A-2 Outlook Stable

Moody’s

Baa3 Outlook Stable

Financial Highlights

(1) Group net income adjusted for the impact of extraordinary items: 2015 = 278€M; 2014 = 175€M; 2013 = 156€M;2012 = 116 €M

(2) At December 31, 2015. Real time updates available at: http://www.a2a.eu/en/investor/overview/shareholding_upd.html

A2A is the Blue Chipof the local utilities

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This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.

A2A: GEOGRAPHIC PRESENCE AND ACTIVITIES

ITALY AND MONTENEGRO: plants

UK SPAIN GREECEMONTENEGRO

Technological Partnerships: waste

Italy• Electricity distribution, water integrated cycle and

public lighting: Northern Italy

• Gas distribution: across Italy (especially Northern)Montenegro• Electricity distribution

BUSINESS PORTFOLIO: diversified and integrated

ITALY AND MONTENEGRO: networks

(1) Declared EBITDA equal to 1,044 €M, excluding costs of redundancy schemes (-1 €M), non recurring items (26 €M) and EBITDA from “Other Services & Corporate” (-21 €M)

Sources: A2A Strategic Plan 2015 Results & Business Plan Update; Company Annual Reports

Ordinary EBITDA equal to 1.023 €M

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This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.

A2A: ASSET PORTFOLIO & STRENGTHS

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This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.

A2A 2016-2020 STRATEGIC PLAN IN A NUTSHELL

Strategic Plan confirmed and reinforced

Energy markets scenario significantly worsened

Net negative regulatory impact

Additional cost reduction

Acceleration on local aggregation

Incremental regulated Capex; wider M&A pipeline

New initiatives (not in plan) identified

A WORSECONTEXT

MANAGEMENTINITIATIVES

STRATEGICFRAMEWORK

Stronger management initiatives to tacklenegative external factors

STRATEGICPLAN

2015 - 2019

NEWSTRATEGIC

PLAN2016 - 2020

LOCALAGGREGATIONS

TERMINALYEAR EBITDA

€ 1.35 B(2019)

€ 1.30 B(2020)

Additional EBITDA(2020) > €100M

TERMINALYEARNET DEBT

€ 2.5 B(2019)

€ 2.4 B(2020)

Solid investmentgrade to bemaintained

DIVIDENDPOLICY(€c/share)

3.6 in 2015,growing to

~ 7.5 by 2019

4.1 in 2015,growing to

~ 7.5 by 2019

EPS accretive

Stability and resilience of industrial portfolio and furthervalue generation from local aggregations

RESTRUCTURE

Substantial reduction in thermoelectricpower generation exposure

RELAUNCHGrowth acceleration in environment,smart networks and energy services

RESHAPEBuying options in smart city

and green economy

DISCIPLINEDiscipline in operations

and capital

DIALOGUEDialogue & engagement

with key stakeholders

DIGITALDigital & technological

transformation

STRATEGIC PLAN GUIDELINES

KEY FINANCIAL HIGHLIGHTS

INVESTMENTSFOR

GROWTH

~ € 2.2B cumulated Capex

EBITDA by 2020 € 1.3B (CAGR 4.5%)

- € 0.5B debt reduction in 5 years

Thermal capacity reduction (- 40%)

Strong growth in core skills markets

Regulated / Quasi-regulated EBITDA(1) by 2020 ~60%

DPS 2015 + 13%; stable dividend expected in 2016

DPS bound to grow

Solid investment grade capital structure to be maintained

DIVIDENDPOLICY

AND CAPITALSTRUCTURE

BUSINESS-MIXREBALANCE

(1) Regulated activities: Networks, EPCG Electricity distribution, incentivized energy production; Quasi regulated activities: Urban Waste Collection & Treatment, District Heating, Public Lighting

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