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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. (“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 or 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 opinions 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.
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 Growth oriented multi-utility, delivered industrial and financial value
FINANCIAL HIGHLIGHT
Million € 2017 2016 2015
Revenues 5,910 5,093 4,921
LARGEST TERRITORY Reported EBITDA 1,211 1,231 1,048
Ordinary EBITDA 1,135 1,033 1,022
AGGREGATION
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
2017 2017
80
NFP/EBITDA D/E
companies
2,7x 1,1
3
2017 Bulletin Board: shaping the future today
€M
REVENUES EBITDA ORDINARY EBITDA CAPEX
+16% -2% +10%
+101
5,910 1,231 1,135
5,093 1,211 1,033
450
349
2016 2017 2016 2017 2016 2017 2016 2017
NET FINANCIAL POSITION DPS
GROUP GROUP ORDINARY -226 +90
€
NET INCOME NET INCOME 17%
3,136 316 3,226
2,910
+26% +10% 0.0578
0.0492
377 413
232 293
2016 2017 2016 2017 2016 2017 Change of 2017 2016 2017
perimeter
2017 ACHIEVEMENTS
WASTE MARKET NETWORKS GENERATION
ORGANIC Ongoing developments Further expansion Successful participation Solid performance
GROWTH in investments for of the free market in the first gas distribution of the generation fleet,
treatment plants customer base tender (Milano1) in particular CCGT plants
LGH - 12M fully consolidation: Set up of A2A Geographical
EXTERNAL Northern Lombardy Multiutility:
strong synergies from Rinnovabili and M&A focus: sale of stake
GROWTH Start of the partnership project
the industrial partnership First step in PV Renewables in Montenegrin EPCG
49M 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.
5Shareholding structure listed in Milan Stock Exchange
AT DECEMBER 31, 2017 A2A 2017 figures (Borsa Italiana)
MARKET CAPITALISATION € 4,831 m
0.8 AT DECEMBER 29, 2017:
AVERAGE CAPITALISATION € 4,455 m
AVERAGE VOLUMES 9,729,351
25.0 AVERAGE PRICE: 1.422 €/share
MAXIMUM PRICE: 1.635 €/share
49.2 % MINIMUM PRICE: 1.232 €/share
Tickers:
Bloomberg – A2A:IM
Reuters – A2.MI
NUMBER OF SHARES: 3,132,905,277
25.0 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
Indices
MUNICIPALITY OF BRESCIA
Municipality of Milan A2A FORMS PART OF THE FOLLOWING INDICES ETHICAL INDICES
MUNICIPALITY OF MILAN and Brescia: FTSE MIB ECPI Euro ESG Equity
MARKET shareholding pact on 42%
TREASURY SHARES STOXX Europe Ethibel Sustainability Index Excellence Europe
EURO STOXX EURO STOXX Sustainability Index
MSCI Europe Small Cap Euronext Vigeo Europe 120
WisdomTree Utilities Solactive Climate Change Index
S&P Developed Ex-US Standard Ethics Italian Index
Moreover, A2A has been included in the Ethibel Excellence Investment Register and in the Ethibel Pioneer Investment Register.
6 Note: At December 31, 2017A2A at a glance Well Balanced Business Mix
VALUE FROM END MORE SOLUTIONS SMARTER AND FLEXIBLE AND
TO BEGINNING TO INVOLVE CUSTOMERS MORE RELIABLE GREENER ENERGY
NETWORKS GENERATION
WASTE MARKET(2) & TRADING
NETWORKS HEAT
1st energy producer Leader for quality and customer Incumbent in the key 1st domestic 2 GW hydro
2017 from WTE plants satisfaction areas operator installed capacity
Ordinary
EBITDA (1)
251 22% 173 15% 309 26% 78 €M 7% 353 30%
€M €M €M €M
Electricity and gas sales Cogeneration
Collection and Fuel
• free market Electricity distribution heat recovery sourcing
street sweeping and sales
• regulated market
Urban Waste Treatment
Material Recovery Gas Heat Power generation
Public Lighting (Thermoelectric
Electricity and distribution Distribution and RES)
Heat production
New Energy Solutions
Industrial Waste Integrated
(Energy Efficiency, Whole-sale & Trading
Treatment Water Cycle
E-mobility and Smart City)
(1) Ordinary EBITDA Equal to 1,164 €M, calculated as Reported EBITDA (1,211 €M) net of non recurring items (64 €M), EBITDA from “Corporate” (-29 €M),
7 EBITDA from EPCG (12 €M). Put option on EPCG stake was exercised by A2A in July 2017
(2) New perimeter of the old Energy Retail BU, including also Energy Efficiency, Public Lighting, Smart City and E-Mobility.A2A at a glance Italian Geographical Presence
G
G
G A2A operates throughout Italy,
G
predominantly in Lombardy
C
G W DH
Technological partnerships
C
DH
G abroad on waste treatment
C E G
PL
C
W DH
PL
plants (UK, Spain and Greece)
E G
DH
PL C
C
G DH
C
DH
G G
C
G C E G
DH
PL
C
G
WASTE GENERATION NETWORKS
Waste collection C Hydroelectric Electricity E
Treatment plants CCGT Gas G
Biogas/Biomass plants Coal Water W
Waste-to-Energy Fuel Oil Public Lighting PL
Solar Cogen. & thermal plants
Thermal solar plants
District Heating DH
8A2A growth – Acquisition Strategy on PV plants
REENERGY
Trentino AA 0.6 MW
• September 2017
• 17 MW
• 18 plants
Lombardia 1 MW
• 5 SPV
Piemonte 2,9 MW • EBITDA 6€M
Emilia Romagna 8 MW
NOVAPOWER
Marche 17,8 MW
• October 2017
• 17,8 MW
• 16 plants
Puglia 15,6 MW
• 8 SPV
Toscana 0,9 MW
• EBITDA 7€M
IMPAX
Lazio 6,5 MW
• February 2018
• 15,7 MW
• 5 plants
• 5 SPV
• EBITDA 6€M
TALESUN potential acquisition
Sicilia 0,9 MW
• term sheet November 2018
• 43,2 MW
Portfolio of 43 PV plants • 39 plants
• 9 SPV
• EBITDA 9€M
Total installed power 54,1MWp • Potential joint venture
9A2A growth – Aggregation Strategy
NORTHERN LOMBARDY
AEVV
MULTIUTILITY
LARIO RETI Benefits of industrial partnership:
ASPEM HOLDING
ACSM-AGAM A2A • Sharing technical and management skills
• Optimization of industrial
LGH and financial position
Preservation of the identity of existing
companies
Industrial entities strongly
rooted in our territory
Enhancement of investment capacity
Improvement of quality standards
and service level
~60-70 €M net additional EBITDA fully
consolidated
Almost complete coverage of Lombardy
Open to new aggregation opportunities
10A2A is a large group of companies
A2A GENCOGAS ERGOSUD A2A CICLO IDRICO
100% 50% 100%
A2A ENERGIEFUTURE A2A CALORE E SERVIZI
100% 100%
LINEA GREEN (1) ASPEM
100% 90%
A2A ENERGIE PROARIS
GENERATION RINNOVABILI NETWORKS 60%
100%
LD RETI (1)
A2A ALFA PREMIUMGAS 90,85%
70% 50%
UNARETI UNARETI SERVIZI
100% METRICI
METAMER 100%
50%
A2A ENERGIA RETRAGAS
100% 91,6%
LUMENENERGIA
92,7%
CAMUNA ENERGIA
89%
A2A ENERGY SOLUTIONS CONSUL SYSTEM
100% 75% ASVT
74,8%
A2A ILLUMINAZIONE
PUBBLICA
MARKET 100%
LINEA PIÙ (1) A2A SMART CITY
100% 100%
AMSA
100%
A2A AMBIENTE SMART CITY
100% ACSM - AGAM (2)
APRICA 45,33%
100% OTHER
COMPANIES LINEA GROUP HOLDING LINEA COM
51% 96,17%
LINEA AMBIENTE (1) LOMELLINA ENERGIA
100% 80%
LINEA GESTIONI (1)
WASTE 100%
The Group includes: 80 companies @30.09.18
Starting from July 2018, aggregation of Northern Lombardy Multiutility
11 (1)
(2)
Shareholdings held through Linea Group Holding S.p.A.
ACSM-AGAM shares at the end of Sell-Out Procedure (as of 25 October 2018)Financial Strategy: Cost reduction and high duration
FINANCIAL STRATEGY DEBT STRUCTURE AND MATURITY
PORTIONS PORTIONS PORTION MATURING IN
ACCOUNTING ACCOUNTING
DEBT ITEMS BALANCE BALANCE
MATURING MATURING
million euro 31/12/2016 31/12/2016
WITHIN 12 BEYONDS
31 dic 2019 31 dic 2020 31 dic 2021 31 dic 2022 beyond
FLEXIBILITY MONTHS 12 MONTHS
provide the Company with the right BONDS
instruments to take potential
2,527 2,995 345 2,650 509 0 350 498 1,293
market opportunities, in a prompt BANK LOANS
and efficient way 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
DEBT BREAKDOWN BY SOURCE STATISTICS RELATING TO DEBT AT 31/12/2017
at 31/12/2017
DIVERSIFICATION TOTAL GROSS DEBT 3.9 €Bn
optimize financial sources
and assess/select at any time 24 AVERAGE COST OF DEBT ~ 3.1%
the most economical and/or best
available AVERAGE MATURITY 5.2 yrs
%
LIQUIDITY POSITION 1.4 €Bn
76 BONDS of which:
LOANS CASH 0.7 €Bn
UNDRAWN COMMITTED LINES AND LOANS 0.7 €Bn
LIQUIDITY
maintain an adequate liquidity
buffer in terms of cash and available
committed lines to cover planned DEBT BREAKDOWN BY INTEREST STATISTICS RELATING TO DEBT AT 30/09/2018*
cash outlays and absorb low- at 31/12/2017
probability events
TOTAL GROSS DEBT 3.9 €Bn
18 AVERAGE COST OF DEBT ~ 3.0%
% AVERAGE MATURITY 4.5 yrs
RISK MANAGEMENT 82 LIQUIDITY POSITION 1.7 €Bn
manage in a proactive way FIXED RATE of which:
the interest risk with the main
purpose to mitigate the effects VARIABLE RATE CASH 1.1 €Bn
of market volatility UNDRAWN COMMITTED LINES AND LOANS 0.6 €Bn
*Does not include ACSM-AGAM
12Bonds and EMTN Programme
On 1 March 2018 the The adoption of the EMTN The bonds to be issued Program amounts
Board of Directors of A2A is part of the A2A Group’s on the basis of the to 4 billion, of which
approved a framework medium-term financial Programme are placed 1,438 million euro still
resolution (i) revoking for strategy, which is aimed to institutional investors available as
the portion not performed at lengthening the average of today.
the resolution previously life of the Company’s Liability management
taken on 10 November outstanding debt and executed to optimized
2016 and (ii) authorising at maintaining an adequate debt duration and cost of
the issue of one or more financial flexibility in order debt
unsubordinated, to efficiently manage the
unsecured and non- future debt maturities,
convertible notes, under to support the Company’s
the EMTN Programme, rating
up to an aggregate amount
of Euro 1 billion,
by 30 April 2020.
13Debt maturities breakdown
602 586
440
385
365 365
343 348
511
500
254
351
300 300 300 300 109
299 139
50
Loans
44 91 139 89 86 85 65 65 50 48 145
Bonds A2A
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Beyond Bonds LGH
2027
Recent capital markets transactions
October 2017 March 2017
• ISSUE of a ten-year bond for a total amount of 300 million euro under the Private placement with a limited number of qualified investors Euro 300 million notes
Euro Medium Term Notes Programme. with a seven-year maturity due in March 2024, under its Euro Medium Term Notes
• TENDER OFFER over A2A outstanding €750,000,000 4.500 per cent. Programme.
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 December 2016
2021 (of which €351,457,000 remain outstanding) 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
14 January 2021Bonds and EMTN Programme
Issue quantity Outstanding Annual Issue date Maturity date Issue price Re-offer
(EUR) amount (EUR) coupon 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%
15Rating overview
Rating: Baa2, Rating:
Not on Watch BBB/Stable/A-2
Moody's upgrades A2A S.p.A.'s ratings to Baa2; A2A’s rating reflects:
stable outlook, April 2018.
Business Risk: SATISFACTORY
The rating action reflects: Expectation that the company will continue to strengthen its positions in
• A2A's track record of improved financial and operating performance regulated and more stable activities, while posting funds from operations (FFO)
as evidenced by funds from operations (FFO)/net debt and retained cash to debt above 20% over 2018-2019” and “successful cost reduction plan with
flows (RCF)/net debt ratios in 2017 of 25.8% and 21.3% €130 million of cost savings already achieved over 2015-2017
(vs. 16.8% and 14.1% in 2014), respectively; Liquidity: STRONG
• the increase in baseload power prices since early 2016 which will gradually The group's liquidity as strong, based on our view of the group's proactive
filter through the company's earnings; financing and healthy cash flow generation and A2A has sound bank
relationships, prudent financial discipline, and proven access to the debt capital
• A2A's commitment to maintaining credit quality and Moody's view that the
markets
company has flexibility to mitigate unexpected negative pressures […]and
maintain metrics in line with the ratio guidance for the Baa2 rating.”
16Enterprise Risk Model supports management actions
The Risk Management Model – Process and Activities
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.
The methodology adopted is characterized by the following steps:
1 2 3 4 5
REGULAR IDENTIFICATION RISK ASSESSMENT PROCESS DEFINITION OF RISK PRIORITIES CONSTANT MONITORING BALANCE SHEET DISCLOSURE
AND UPDATING OF THE RISKS carried out through the AND RISK REPORTING OF MITIGATING ACTIONS (“Bilancio Integrato” under the
to which the Group is exposed involvement of all Group submitted to the top PROGRESS, D.Lgs 254/2016 regulation)
structures, risk owners and risk management for approval to check their effectiveness on
specialists, which includes: risks mitigation and prevention
• update of risk scenarios related
to activities
• risk scoring
• establishment of the relative
controls and mitigation plans
RISK – External, Internal and Strategic Risk
CHANGES MACRO-ECONOMIC COUNTERPARTY INTEREST DEFAULT
BUSINESS INTERRUPTION COMMODITY PRICE LIQUIDITY RATING
IN LAWS AND REGULATIONS SITUATION CREDIT RISK RATE AND COVENANT
ACQUISITIONS, INTEGRATION TENDER AND SOCIAL AND
ICT INFRASTRUCTURE AND FISCAL AND
AND BUSINESS LEGAL PROCEEDING NATURAL EVENTS ENVIRONMENTAL CONCESSIONS ENVIRONMENTAL COMPLIANCE
SECURITY TAX-RELATED
COMBINATION CONTEXT
17 (1) This method follows the framework set by the Committee of Sponsoring Organizations of the Treadway Commission (CoSO report)New strategic Guidelines
from a2a T a2a E a2a C
RELAUNCH
Consistent industrial growth
Selective external growth
T
Transformation
Business strengthening & change
E
Excellence
agile organization,
leader in operational excellence
C
Community
attract and empower people engage
external ecosystem
2018 2022 2018 2022 2018 2022
to
REGENERATION A2A will make a significant effort Starting from the positive experience Over 350 innovation concepts evaluated
Active role in the energy to undertake, in its 4 reference of the EN&A Project, the Mistral Project will be translated into the experimentation
market transformation businesses, the transformation actions has been launched: focus on operational of about 50 new initiatives
necessary to respond to the identified excellence through a bottom-up redesign
market trends of processes and the transformation
(detailed plan in the next pages) of the managerial culture.
Moreover, strong boost in Capex
for digitalization and technological
innovation (>500 €M in the period)
RESHAPE
Public lighting, smart city,
energy efficiency
Sustainability
inspiring priciple of enterprise development
2017-2021
18A2A Sustainability embedded in the Strategic Plan
60+ core goals GENERATION MARKET WASTE NETWORKS
built on our sustainability pillars
% sorted collection Water network losses
CIRCULAR
ECONOMY New recycling plants Depurated waste water
Project on reduction/ reuse/recycle
E CO2 emissions reduction Energy efficiency projects Low-impact vehicles DH users
DECARBONIZATION Green energy sold Dispersed heat recovery
to Mass Market and DH non-fossil sources
Digital users Smart bins Smart meter
SMART GRID
AND SERVICES # LED lighting points Service interruption
EV charging stations Smart grid
S Contact centre quality
PEOPLE Environmental education Smart city projects Reduction of the Roadwork site
INNOVATION accident rate inspections
Banco dell’Energia step 2
• The shift to a traditional governance model, occurred in June 2014, facilitates decision making and emphasizes the central role of the Board of Directors
G GOVERNANCE • 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
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
19A2A Sustainability embedded in the Strategic Plan
CIRCULAR ECONOMY g/
% DECARBONIZATION kWh
100
84 445
82
420 419
31 394
2015 2016 2017 2022 2015 2016 2017 2022
MATERIAL RECOVERY RATE CO2 /kWh
IN A2A PLANTS ON TOTAL WASTE COLLECTED CARBON INTENSITY
SMART GRID k PEOPLE INNOVATION %
AND SERVICES
550
20
356
227 269
0 5 5
2015 2016 2017 2022 2015 2016 2017 2022
ONLINE MEMBERS SMART WORKING
OF A2A ENERGIA COMMUNITY % on total employees applicable
20Data Annexes
A2A Asset Portfolio
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Net Financial Position
A2A strong Commitment to Sustainability
Financial Report and Economic data and News are all available on A2A website:
http://www.a2a.eu/en/investor/
21A2A Asset Portfolio as of 31 December 2017 22
Consolidated Income Statement
(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
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
23Consolidated Balance Sheet 24
Consolidated Net Financial Position 25
A2A strong Commitment to Sustainability
Listening to the needs of stakeholders in the various territories in which A2A operates. Definition of a Sustainability Policy with objectives through to 2030 and a Sustainability Plan integrated
Identification of the material aspects for planning and reporting 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
• Stakeholder Engagement: Circular Economy: Decarbonization:
more than 270 initiatives involving external and internal stakeholders. The forumAscolto programme, Sustainably manage waste Contribute to achieving national
the multistakeholder feedback initiative launched by A2A in 2015 aimed at understanding the needs during its life cycle and EU targets for the reduction
of the communities where it operates, continued in 2017 of greenhouse gas emissions
• Materiality Evaluation:
A2A Group materiality matrix was updated
Smart grid People Innovation:
and services: Actively contribute to the
Increase grid reliability welfare of the community
SUSTAINABILITY NETWORKS through technological and the improvement
innovation of working conditions
A2A has an active participation
in national and international
associations and networks WINNER IN 2017
on matters of sustainable Governance and Tools
development. • 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
Reporting to external stakeholders • Organisation, Management and Control Model (according to 231/01 Law)
during focussed meetings or through the Integrated • Policy for Quality, Environment and Safety and Systems for their Management
Report and Territorial Sustainability Reports • 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)
Implementation of practices and adoption of instruments that are consistent with the
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
sustainability goals prefixed in the value creation process
Natural), in accordance with the International Integrated Reporting Council (IIRC) framework.
INVESTMENTS GENERATION & NETWORKS WASTE CORPORATE TOTAL
CLASSIFICATION TRADING AND HEAT
Emission
Moreover, in 2015, A2A began, first in Italy, publishing sustainability reports with reference to the specific 2.1 4.6 6.4 - 13.1
Reduction
territories in which it operates, undertaking a path toward the community and extending its stakeholder
engagement model. Energy
During 2017 six Territorial Sustainability Reports were published (Milan, Brescia, Bergamo, Varese, 0.4 4.1 25.8 - 30.3
efficiency
Valtellina and Valchiavenna and Friuli Venezia Giulia).
Renewables 13.2 5.3 7.6 - 26.1
Innovation 0.5 - 7.7 0.4 8.6
The Integrated Report 2017 is available on A2A website
Total 16.2 14 47.5 0.4 78.1
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