A2A Investor Day Milan, 10th April 2015€¦ · A2A Investor Day Milan, 10th April 2015 . 2 2 1. FY 2014 Results 2. Strategic Plan 3. Closing Remarks 4. Q&A Valerio Camerano CEO Andrea

1 1

A2A Investor Day Milan, 10th April 2015

2 2

1. FY 2014 Results

2. Strategic Plan

3. Closing Remarks

4. Q&A

Valerio Camerano CEO

Andrea Crenna CFO

Giovanni Valotti Chairman

2

3 3

FY 2014

Results

3

4 4

Corporate Governance

simplification

Organization progresses

New Business Unit structure

with greater responsibility

Operating integration

(Edipower, A2A Ambiente)

People development

(Gulliver Project, Futura2a, …)

Further cost efficiency: -€24M fixed costs vs. 2013

New-generation LED projects

Environment development: glass treatment plant, …

Dispatching services market record volumes

District heating western Milan pipeline completed

GOVERNANCE

AND ORGANIZATION OPERATIONS

Main

achievements

2014

FY 2014 Results

Strategic Plan

Closing Remarks

5 5

156 175

2013 2014

3,874 3,363

2013 2014

EBITDA/

NFP

Consolidated

Results 2014

5,604 4,984

2013 2014

1,133 1,024

2013 2014

-11% -10%

-13% 3.4 3.3

62

-372013 2014

* Excluding extraordinary items equal to €212M in 2014 and €94M in 2013

REPORTED EBITDA REVENUES

NET FINANCIAL

POSITION

ORDINARY GROUP

NET INCOME* GROUP NET INCOME

€M

FY 2014 Results

Strategic Plan

Closing Remarks

+12% n.s.

6 6

2013Reported

1,133

-54

2013Ordinary

1,104

-72

18

Environment

6 988 53 1,024

Non-recurringItems

Provisions forredundancies

25

Gener.& Trad.

EnergyRetail

-32

DistrictHeating

-21

Networks

EPCG

-14

2014Ordinary

Provisionsfor Mobility

-17

Non-recurringItems

2014Reported

Group 2014

EBITDA

-116

-109

€M

-109

FY 2014 Results

Strategic Plan

Closing Remarks

7 7

From EBITDA

to Group Net

Income 2014

2014EBITDA

Reported

1,024

-207

-452

-147

161 -179

GroupNet Income

Reported

Impairmentof Assets

D&A RiskProvisions

-57

NetFinancialExpenses

EBT Tax Minorities

-19 -37

-37FY 2014 Results

Strategic Plan

Closing Remarks

€M

8 8

Group NetIncome

Reported2014

-37

207

Tax effecton

impairmentof Assets

-48 65

Capitalgainand

Disposalof Assets

175

GroupNet

OrdinaryIncome

2013

156

Write-downon assets

Taxes: effectof RHT

Cancellation

-12

Group NetIncome

Ordinary2014

From Group Net

Income to

Ordinary Group

Net Income 2014

FY 2014 Results

Strategic Plan

Closing Remarks

€M

+212 +12%

9 9

Capex 2014

104

135

41

151

113

43

2013

280

2014

307

Mandatory

Maintenance

Development

34

85

43

41

67

25

114

69

41

48

2013

10

280

2014

10

307

Energy

Environment

DistrictHeating

Networks

Corporate

EPCG

+27 +27

BREAKDOWN

BY ACTIVITY

BREAKDOWN

BY BUSINESS

FY 2014 Results

Strategic Plan

Closing Remarks

€M

10 10

2014EBITDAReported

1,024

Use ofFunds

-86-133


-122

920-307

613-102

511

Changein Net Working

Capital

237

TaxPaid

FFO

Capex

FreeCashFlow

Dividends

Net FreeCash Flow

Net Free

Cash Flow 2014

(1) Funds from operations after working capital change

FY 2014 Results

Strategic Plan

Closing Remarks

€M

11 11

GrossFinancialDebt 2013

3,209

479

638

4,326

Net FinancialPosition

2013

FreeCash Flow

2014

Net FinancialPosition

2014

GrossFinancialDebt 2014

2,910

449

615

3,973

Cash andequivalents+ Other NetAssets 2013

-452

3,874

-511

3,363

Cash andequivalents+ Other NetAssets 2014

610

Gross Debt

and Net Financial

Position 2014

Bonds Loans

-353

Fixed

rate

85%

Var. 15%

Average debt maturity 5.7 years

Average annual cost of debt from 4.4% to 3.9% NFP

FY 2014 Results

Strategic Plan

Closing Remarks

Average debt maturity 5.7 years

Average annual cost of debt from 4.4% to 3.9%

€M

Fixed

rate

85%

Var. 15%

12 12

Strategic Plan

2015-2019 STRATEGIC PLAN 12

13 13

Vision

FY 2014 Results

Strategic Plan

Closing Remarks

2015-2019 STRATEGIC PLAN

Modern and multi-business utility,

essential for future needs of local communities,

leader in green economy, smart networks and new energy models

VISION

Develops most concrete opportunities and resolutely addresses

present challenges starting an in-depth strategic re-positioning

STRATEGIC PLAN

FROM… …TO

Conventional energy

Large-scale investments

Reactivity, centralization

Asset based

Cost cutting

Leveraged

Innovative energy and environment solutions

Tailor-made solutions for community needs

Proactivity, de-centralization

People based

Operational excellence

Self-funding

14 14


15 15


16 16

RESTRUCTURE

RELAUNCH

RESHAPE

DISCIPLINE

DIALOGUE

DIGITAL


17 17

RESTRUCTURE

Substantial reduction

in thermoelectric power

generation exposure


18 18

RELAUNCH

Growth acceleration

in environment,

smart networks

and energy services


19 19

RESHAPE

Buying options

in smart city

and green economy


20 20

DISCIPLINE

Discipline

in operations

and capital


21 21

DIALOGUE

Dialogue & engagement

with key stakeholders


22 22

DIGITAL

Digital

& technological

transformation


23 23


24 24

* Excluding 2014 impairment effects

Key highlights €2B cumulated Capex (~+40% vs. 10-14) SIZEABLE

INVESTMENTS

STRONG EBITDA

GROWTH €1.35B by 2019 (CAGR 5.8%)

DOUBLE DIGIT ROI from ~8% in 2014* to >12% in 2019

FURTHER DEBT

REDUCTION €-0.8B in 5 years

REBALANCE

BUSINESS MIX

+ environment, smart networks and

new energy services

DIVIDEND POLICY Growing and sustainable dividend policy

FY 2014 Results

Strategic Plan

Closing Remarks


25 25

Strategic Plan

Strategic guidelines

R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital


26 26

R1 - Thermal

plant restructure


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

-€100M of cumulated savings

-3 GW capacity

San Filippo and Brindisi plant reconversion

A2A GenCo Gas creation

€35M in increased CCGT flexibility to capture

capacity market potential

COST

REDUCTION

A DIFFERENT

ASSET BASE

ONE CCGT

COMPANY

KEY PLAYER

IN A NEW

POWER MARKET


27 27

2014 cost

82

Cost reduction

-21

2019 cost

61

-25%

LTSA contract renegotiation

Plant management streamlined

-€100M cumulated savings, 90% already secured

Tangible results already in 2015


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

€M -25% CCGT fixed

cost reduction


28 28

Start-up timefrom warm (avg.)

120

215

2014

2019

-3 GW thermal capacity, CCGT flexibilization

Additional thermal capacity reduction (-40%)

Top class in flexibility and energy management

Reconversion of obsolete plants into RES/Environment plants

Load gradient(avg)

26

50

CCGT A2A PERFORMANCE EVOLUTION


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

+92% -44%


31/12/2013

1.3

2.0

10.0

31/12/2019

4.1

0.6**

2.0

7.05.7*

1.0*

0.3

Hydro+RES

Coal

CCGT

Otherthermaland cogen.

A2A INSTALLED CAPACITY

-3 GW GW

*Includes active plants temporarily mothballed/not dispatched due to non-economical conditions

** includes project under authorization process

min. MW/

min.

29 29

Genco Gas creation


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

Progressive integration

of all CCGT assets into

one business entity

CCGT

CCGT

CCGT

CCGT

Integration process

according to different

CCGT ownership

structures

Genco Gas


30 30

0.6

0.2

0.8

1.6

1.4

2014 2019E

Must-run

Capacitypayment

Interruptibility

Capacitymarket

2014

3.3

20.2

2019

23.5

Key player in the

forthcoming

energy market

Installed Italy capacity

reduction by 2019:

-9 GW non-cogenerative

CCGT

-19 GW traditional thermal

plants (mostly already

inactive in 2014)

TOTAL IMPACT ON

ITALIAN ELECTRICITY BILL

CAPACITY MARKET

IMPACT ON A2A PLANTS

-€0.2B

ITALIAN ELECTRICITY

SYSTEM EVOLUTION

Room for reduction of the

electricity bill

Capacity market compatible

with system charge reduction

Remuneration differentiated by

technology

A2A estimates in line with

foreign market evidence (e.g.

UK auctions)

Average figures on A2A

total generation portfolio

Adequacy/

Flexibility

Note: 2014 Italian system data forecast; 2019 figure, A2A internal estimate


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

€B €K/

MW

Increase in flexibility,

remunerated by capacity

market

Essentiality (must-run)

charge reduction (e.g.

Sicily)


31 31

-39

81

73

109

~5%~5%

ThermalEBITDA

2014

Cost savingsand plant

conversionsMarketmargin

evolution

Netcontribution

from the system

-6

ThermalEBITDA

2019

< -10%CCGTROI < -10%CCGTROI

Strategic Plan


R1 - Restructure

R1: impact on EBITDA

Net impact

between end of

SFM essentiality

and capacity market

revenue increase

€M +€148M


32 32

R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

Strategic Plan



33 33

R2 - Relaunch

of core business


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital


+20% waste collection

+1 Mt waste treatment

+18% district heating volumes

+13% POD managed in gas distribution

3x customer base in free market

+4.0 TWh & +900 Mm3 sold

+14% electricity generation

-18% FTE

ENVIRONMENT

SECTOR

REGULATED

BUSINESSES

ENERGY

RETAIL MARKET

EPCG

34 34

Use of landfills currently

over 40% in Italy

Proven experience in development

and management of treatment

plants with material and energy

recovery

Sorted collection >60% by 2020

in target geographic areas

Leader in sorted waste collection

(~700 Kton in 2014)

Plant developments already

completed (glass treatment, heavy

ashes plant…)

Tenders for waste collection

concessions covering 5

million inhabitants served in

target geographic areas in next

5 years

Proven track record in tenders

(~70% success rate, +160k

inhabitants served in the last 18

months

BUSINESS SEGMENT

ATTRACTIVENESS A2A

KEY SUCCESS FACTORS


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

Strong growth

in Environment

value chain


35 35


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

Strong growth

in Environment

value chain


+550 K inhabitants served

10% success rate in waste collection tenders

+22% COLLECTION (M inhabitants)

+38% TREATMENT (Mtons)

2014

2.7

2019

3.3

0.3

2.1

2.60.3

2.5

0.8

3.6

2014

0.2

2019

Sorted

Other MSW

Industrial

+22%

+38% 600 kt/y recycling plants (glass, paper, organic, …)

Other MSW: +300 kton/y

~35% external growth

Foreign EPC contracts

EBITDA

+€54M By 2019

MSW – Municipal Solid Waste

36 36

BUSINESS SEGMENT

ATTRACTIVENESS A2A

KEY SUCCESS FACTORS

DH, instrument to achieve energy

efficiency goals and emission

reduction in big urban areas

A2A strong presence in Lombardy's

main towns and cities

Long-term concessions (Milan,

Brescia, Bergamo >2035. Varese 2025)

Churn rate structurally close to zero

Quasi–regulated business

High potential in northern Italy Significant growth opportunities in

Milan and Bergamo (network

coverage ~10%, vs. Brescia 70%)

Efficient cross-industry

business mix

Opportunities for integration

between DH, electricity

generation and waste treatment


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

District Heating

development


37 37


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

District Heating

development


2.0

0.5

2.5

2.9

2014 2019

Additional volumesfor temperaturenormalization

Penetration increase*

MI from 9% to 11%

BG from 16% to 20%

Saturation of existing heat

sources +0.1 TWh

Increase in Group heat

generation +0.2 TWh

Heat recovery from third-

party industrial processes

+0.1 TWh

+18%

* connected volumes

TWh

EBITDA

+€28M By 2019

38 38

BUSINESS SEGMENT

ATTRACTIVENESS

A2A

KEY SUCCESS FACTORS

Growth in gas

networks

Further cost synergies from

adjacent ATEMs

Scale economies from

sector consolidation

Reduction of current

fragmentation thanks

to tender process

Opportunity of consolidation in

Lombardy (18 ATEMs served) and

in the northern part of Italy


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital


39 39


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

Growth in gas

networks


2014

1,215

2019

1,371

2014

965

2019

1,224

+13% POD managed in gas

distribution

Cash-in and cash-out balanced

from tendering process

+27% RAB value combination of

Sound capex plan

POD increase through tenders

POD: points of delivery

+13%

+27%

‘000

POD

€M

RAB

EBITDA

+€19M By 2019

40 40

BUSINESS SEGMENT

ATTRACTIVENESS A2A

KEY SUCCESS FACTORS Growth in energy

retail: mass-market

and SME

Business segment with

interesting risk-return profile,

but with high competitiveness

Low and stable churn rate

in each segment

CtA: payback period <1 year

(average)

CtS residential customers

in core territories <20 €/year

65% dual customers

Best-in-class credit/NWC

Opportunity to extract value

from operations

Growth of value added

and integrated services

Group know-how for cross-sector

services and upselling (waste,

energy efficiency, …)


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital


41 41


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

Growth in energy

retail: mass-market

and SME


320

965

180 510EE

140 455GAS

2014 2019

Gradual territory expansion

>€40M used for

acquisition channels

Strong focus on operating

performance

Note: assumption of current regulatory and market structure continuity

3x

*free market on total customer

15%*

37%* EBITDA

+€53M

By 2019

‘000

POD

EBITDA

+€53M By 2019

42 42

2010

2,967

2014

2,618

2019

2,150

Thermal1.3

Hydro1.7

3.0Thermal

1.4

Hydro2.1

3.5

2014 2019

POWER GENERATION

FTE EVOLUTION


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

TWh EPCG

performance

enhancement

Further operating efficiencies

Network losses -5%

Smart meters +80k

Structure streamlining

(-468 FTE)

Refurbishing of existing

hydro plants (Piva and

Perucica)

Sharing of best practices Italy-

Montenegro

Tariff adjustment (CAGR +5%)

New opportunities from energy

management/ trading


EBITDA

+€61M By 2019

43 43


Environment

54

2819

Retail

53

EPCG

61

IncrementalEBITDA

R2

215

DistrictHeating

GasDistribution

€M


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

+€215M


44 44

Strategic Plan


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital


45 45


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

Renewing street lighting with LED

Energy efficiency improvement in

public and private buildings

ENERGY

EFFICIENCY

"ENERGY

COMMUNITY"

SERVICES

SMART CITY

From the current test phase to

extended solutions of distributed

generation, demand aggregator,

storage systems

New technological tests (smart

grids, big data, …) for the design

of new business models

250,000 installed

LED

5,000 energy-

refurbishment

projects

Supporting

the paradigm

shift of the

power system

Leading role

in the development

of urban

infrastructures

R3 – Build options

for the future


46 46

Focus on

energy efficiency

initiatives

2014

100

2019

250

LED example +150%


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

‘000

Public Lighting

Milan and Brescia (+40k lights)

Focus on northern Italy medium-

large municipalities

Value-added services (Wi-Fi,

video-surveillance, ...)

Energy efficiency

Public Administration and

Condominiums

Growth through selective

acquisitions

Regulatory opportunities (white

certificates)


EBITDA

+€30M By 2019

47 47

EnergyEfficiency

20

PublicLighting

10

Smart City

3

EBITDA2019

33


€M


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

+€33M


48 48

Strategic Plan


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 – Dialogue

D3 - Digital


49 49

Discipline,

Dialogue

& Digital


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital

DIALOGUE

DIGITAL

& TECH

DISCIPLINE

€130M cost-cutting from identified projects

"EN&A", new project on process optimization (not included in plan financials)

Growing dividend policy with a sustainable capital structure

Accountability & transparency vs. stakeholder (multi-stakeholder table)

Focus on people and skills development and entrepreneurial culture

Strong commitment to environmental protection and natural resources

8 key digital initiatives identified to support enhancement of :

- Brand positioning

- Acquisition and cross-selling

- Social care, online and mobile services, offer portfolio

Emerging disruptive technologies, “window opportunity"


50 50

421

110

531

2015Savings

-32

394

109

503

2016-2019Savings

-54

369

108

477

2014pro-forma

Inflation

4

2015 Inflation

28

2019

€130M

cost savings

620 17

2015Savings

-13

62458

2016-19Savings

-33

649

2014pro-forma

UnitIncrease

2015 UnitIncrease

2019

Initiatives identified

punctually

Results already in 2015

Savings on O&M of energy

and waste plants

Increase in productivity

Full exploitation of labour

market mechanisms

-€86M -16%

OPEX

LABOUR

COST

Controllable

Note: on a like for like basis data excluding Aspem Spa networks opex and labour costs (exit forecast

from 2017); not included new development initiatives; capitalized labour cost included, other

personnel costs not included (amounting to €50M in 2014 and €35M in 2015 and 2019)

-€46M -7%

€M


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital


Launched En&A program to

achieve significant process

improvements in costs and

quality of service (results not included in plans figures)

51 51

Dividend policy

and capital

structure

A2A

DIVIDEND

PER SHARE

(€ cent)

FFO/DEBT*

Stable

dividends

bound to

grow…

…maintaining

solid

investment

grade rating

+10% Stable

dividends

Growing

dividends

to about 2x

2013

3.3

17.1%

…

…

…

2014

3.6

17.7%

2015

3.6

18-18.5%

2016

3.6

~20%

2019

7.5

>25%

* FFO = Ebitda – provisions for bad debt - net interest expense - current tax expense + dividends received

* Debt = gross financial debt net of surplus cash + employee benefits + liabilities for landfills


R1 - Restructure

R2 - Relaunch

R3 - Reshape

D1 - Discipline

D2 - Dialogue

D3 - Digital


52 52

Strategic Plan

Key financial figures


53 53

Ebitda evolution

2014-2015

-53 -37

2014Ordinary

951-11 -6

1,010

2014

1,024

14One-off

14 ClimateEffect

RedundancyCosts

17

Gener.& Trading

53

Environment

DistrictHeating

Networks

14

Other

9

2015

€M

FY 2014 Results

Strategic Plan


Closing Remarks

+59


54 54

Ebitda evolution

2015-2019

2015 Gener. &Trading

Energyretail

Environment DistrictHeating

Networks EPCG 2019

1,010

11346 74

25 17 691,354

€M

FY 2014 Results

Strategic Plan


Closing Remarks

+344


55 55

FY 2014 Results

Strategic Plan


Closing Remarks

€M EBITDA

regulated/

free market mix

2014Ordinary

406

261

92192

457

351

137

409

951

2019

1,354

Merchant

Merchant low

volatility

Quasiregulated

Regulated

REGULATED

FREE MARKET


56 56

Net Income

evolution

2015Group Net

Income

215

EBITDA

344

D&A RiskProvisions


Tax

-125

Minorities 2019Group Net

Income

395

-40 12 24

-35

Strategic Plan

Economic and financial figures

€M

2014

-

2015

2015

-

2019

-37

212 175

55

2015Group

NetIncome

215

2014Group

Net Income

ExtraordinaryEffect

2014 GroupNet Ordinary

Income

EBITDA

-14

D&A

RiskProvisions

-19


20

Associates,JV and others

-4

Taxes

-5

Minorities

7


57 57

Capex Plan

307 403146

629

912

212

783

1,094

2014 2015 2016-2019

1,687

Total Capex2015-2019

2,090

Mandatory

Maintenance

Development

FY 2014 Results

Strategic Plan


Closing Remarks

€M 2014 -2019 CAPEX

21%

1%

41%

36%

Regulated

QuasiRegulated

Merchant lowvolatility

Merchant

2015-2019

BUSINESS UNIT (%)

2015-2019

REGULATED/ FREE MARKET (%)


36%

14%

25%

14%8%

2%1%

Generation &Trading

Retail

Environment

District Heating

Network

Corporate

Epcg

58 58

Cash-flow

generation

3.4

-5.9

0.10.3

1.1

2.1

0.7 2.5

2014NFP

Ebitda

Change inNWC

Use ofFunds

Tax


0.6

Capex

Dividends

2019NFP

NFP/

EBITDA 1.9x 3.3x

-€0.8B

ROI ~8%* ~12% RETURN ON INVESTMENTS

2015-2019

FFO ~€3.7B

* Excluding 2014 impairment effects

FY 2014 Results

Strategic Plan


Closing Remarks

€B


59 59

Strategic Plan

Upsides and wrap-up


60 60

Additional

projects

under way

FY 2014 Results

Strategic Plan

Upsides and wrap-up

Closing Remarks


FEASIBILITY/

EBITDA IMPACT INITIATIVE STATUS

€200-250M not included in Strategic Plan

tbd EN&A project launched Efficiency from process

redesign and optimization

€10-20M ATEM scouting and tender preparation Gas networks: further growth

through gas tenders

ATO Brescia rationalization tbd Integrated water cycle

development through partnership

€50-100M First scouting of opportunities in Lombardy Local aggregations

€50-60M Agreement with Lombardy and Milan

municipality under discussion

Heat transportation

backbone Cassano-Milano

€40-80M Presence in Acerra, competitive dialogue

ongoing in Giugliano, projects under study

WTE: new plants in southern Italy

& rationalization in Lombardy

€10M Pilot projects under-way (S.C.U.O.L.A.

Project and Brescia Smart Living)

System integrator for

smart city services

tbd Business opportunity scouting under way Potential abroad

development

Feasibility

low high

61 61

More flexible,

more profitable

FY 2014 Results

Strategic Plan

Upsides and wrap-up

Closing Remarks

INVESTMENTS

FOR GROWTH

~€2B cumulated Capex (~+40% vs. 2010-2014)

EBITDA by 2019 €1.35B (CAGR 5.8%)

-€0.8B debt reduction in 5 years

BUSINESS-MIX

REBALANCE

DIVIDEND POLICY AND

CAPITAL STRUCTURE

Thermal capacity reduction (-40%)

Strong growth in core skills markets

Regulated/Quasi-regulated EBITDA by 2019 ~35%

DPS 2014 +10%, stable dividend set for 2015-2016

DPS bound to grow

Sustainable capital structure


62 62

Closing Remarks


63 63

A2A @2020:

Leading public utility in Italy

Solid economics and financials

Best-in-class service standards, highly innovative

Value creation for local communities served

Best place to work for

A2A @ 2020

FY 2014 Results

Strategic Plan

Closing Remarks

New strategic plan designed backwards from future to present:

once shared the vision we settled A2A positioning in 2020, than

the management team built-up the steps needed to get there

2015

2016

2017

2018

2019

2020


64 64

Discontinuity plan, that reshapes strategies and business mix

Discontinuity

and tradition

FY 2014 Results

Strategic Plan

Closing Remarks

Combination of tradition and innovation


65 65

Tangible projects based on intangible values

Our values for

our stakeholder

FY 2014 Results

Strategic Plan

Closing Remarks

Stakeholder engagement and corporate social responsibility


66 66

Financial and economic improvement

Going industrial

staying local

FY 2014 Results

Strategic Plan

Closing Remarks

Industrial DNA of a deep-rooted local presence


67 67

Sharing throughout organization

Organization

engagement

FY 2014 Results

Strategic Plan

Closing Remarks

Professional growth opportunities

Cohesive and simpler corporate governance


68 68

Promotion of alliances through an innovative approach

Growing

together

FY 2014 Results

Strategic Plan

Closing Remarks


69 69

Presente

nel futuro WE ARE READY.

Eager in the present to join the future.

The future beckons.

We are ready, raring to go. Now.

70 70

FY 2014 Results

Strategic Plan

Closing Remarks

Q&A


71 71

Disclaimer: 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.

Contacts and

Disclaimer

FY 2014 Results

Strategic Plan

Closing Remarks

Contacts:

A2A Investor Relations Team

Mail: [email protected]

Phone: +39 02 7720 3974

http://www.a2a.eu/en/investor/

Documents

A2A Investor Day Milan, 10th April 2015€¦ · A2A Investor Day Milan, 10th April 2015 . 2 2 1. FY 2014 Results 2. Strategic Plan 3. Closing Remarks 4. Q&A Valerio Camerano CEO Andrea