Acea, 24-28 business plan approved: People for sustainable infrastructure

CONSOLIDATION OF INFRASTRUCTURE LEADERSHIP POSITION IN THE WATER, ELECTRICITY AND ENVIRONMENT REGULATED SECTORS, SUPPORTED BY ENGINEERING AND PRODUCTION.

INVESTMENTS AT AN ALL-TIME HIGH, EQUAL TO €7.6BN DURING THE PERIOD 2024-28, TO SUSTAIN THE COUNTRY'S INFRASTRUCTURE DEVELOPMENT.

EBITDA UP BY MORE THAN 5% PER YEAR, ON A LIKE-FOR-LIKE BASIS, WITH A SOUND FINANCIAL STRUCTURE (2028 NFP/EBITDA 3.1x) AND MORE THAN €1 BN IN DIVIDENDS DISTRIBUTED.

FOCUS ON PEOPLE, PROCESSES, SYSTEMS TO CREATE SUSTAINABLE VALUE FOR ALL THE STAKEHOLDERS.

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2024-2028 BUSINESS PLAN - ECONOMIC AND FINANCIAL HIGHLIGHTS

• EBITDA CAGR 2023-2028 >+5%, thanks to organic growth. EBITDA from regulated infrastructure ~90% in 2028 compared with 87% in 2023
• Net profit CAGR +5%, despite the increase in depreciation and financial costs
• Overall investments: €7.6bn, will ensure sustainable growth, in compliance with a strong financial discipline. Annual investments amounting to around €1.5bn, compared with €1.0bn during the period 2020-2023
• Consolidated RAB (Regulatory Asset Base) to reach €10.5bn in 2028, up by 42% over 2023 with a CAGR in excess of 7% during the plan period;
• Financial structure optimisation: NFP/EBITDA ratio in 2028 at 3.1x (3.5x in 2023)
• Dividend: annual growth of 4% during the 2023-28 period, corresponding to an overall distribution in excess of €1 bn

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SUSTAINABILITY - HIGHLIGHTS

• Achievement of science-based targets (SBT) of emissions reduction by 2032;
• Reinforcement of commitment concerning protection and valorisation of people;
• Industrial investments totalling ˃€5bn linked to sustainability, and in line with the SDG;
• Promotion of ESG performance throughout the supply chain

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At yesterday's meeting, the Acea Board of Directors, chaired by Barbara Marinali, approved the 2024-2028 Business Plan.

Acea's Chief Executive Officer, Fabrizio Palermo, commented:

"The Business Pan being presented today outlines the strategy that the Group intends to implement over the next five years.

The Plan, which we have called "Green Diligent Growth", envisages significant growth and focus on three regulated businesses aimed at making our infrastructure more and more sustainable and resilient, with investments totalling 7.6 billion Euro to sustain the country's development.

The strong discipline on costs and investments is a key aspect of our strategy to support cash generation combined with optimisation of our financial structure and capital allocation.

The Plan features a steady growth in investments and RAB, which will translate into solid growth in economic and financial results and an increasingly attractive remuneration policy for the shareholders.

ESG criteria are an integral part of our business decisions, alongside the contribution and professional skills of our people. Precisely with a view to encouraging all of this, strategic training and professional development programmes are scheduled, with a focus on new digital technologies."

To read more download the attached pdf.