A2A Spa Ord

Hello, and welcome to A2A's Q1 2025 Results Conference. My name is George, and I'll be coordinating for today's event. Please note, this conference is being recorded, and for the duration of the call, your lines will be in listen-only mode. However, towards the end of the presentation, you'll be able to ask questions, and this can be done by pressing star 1 on your telephone keypad to register for questions. If you require assistance at any point, please press star 0, and you will be connected to an operator. And I kind of call the origin host today, Mr. Marco Porro, having this relationship with you at this conference. Please go ahead, sir.

Good afternoon, everyone. Thank you for taking the time to participate to our first quarter results call. Today, as usual, the presentation will be driven and commented by our CEO, Renato Mazzoncini, and the CFO, Luca Moroni. I immediately leave the floor to Renato for the first comments.

Okay, thanks, Marco. Good afternoon, everyone. Thanks to be here with us. Let's say it was not a trivial quarter considering the geopolitical situation, but we are happy with the results. And so I start from slide number two. As usual, we would like to begin by highlighting the achievements we have reached in this quarter, and in particular is a quarter that confirms our commitment to the pillars of our strategic plan with a renewed focus on our organization, we see, and an expansion of our regulated activities perimeter. The news in these slides is the new business unit circular economy that I remember is the integration of our waste cycle, district heating and water. It aims to fully leverage the existing integration advantages among these three businesses that are in our pillar circular economy. And so this organizational change, I remember that this heating and water before was inside the smart infrastructure business unit. This new organization now perfectly aligns our managerial decisions making process with our two strategic pillars, circular economy and energy transition respectively. So going more in deep in our two pillars, starting from the energy transition, Our integrated business units of generation and supply are both growing in a balanced and risk manner to secure visible results over the planned horizon. So in particular, some highlights of this quarter, we were awarded 4.6 gigawatts in the capacity market for 27 delivery. So with an increased premium, but providing additional visibility to our targets of EBDA. And looking how our green energy platform is gradually gaining scale with an overall PPA contracts for around 800 gigawatt hours, either by month. or self-signed. That means that we are really working to become a platform also for other players in generation, renewable generation, with our supply and customer base. On the same side, let me underline that we reached more or less 100,000 subscriptions in our PPA is a mass market. You remember our offer, Noi Due, we launched it more or less one year ago and it's working very well. Our target, I remember, is to arrive more than two terawatt hours of energy with this kind of PPAs mass market. Looking at our business unit's smart infrastructure, of course, the big news is the consolidation of the electricity network in Lombardy, in particular in the province of Milano, not only acquired from Enel. But we are also growing, making a progress in mobility infrastructure. In particular, in this quarter, we signed an agreement with Metro Italia for the installation of 150 charging points. But in particular, we received the approval from the municipality of Milano to install around 1,500 charging points. charging points in the center of Milan. Our so-said city plug solo charge charging point that is our formula to increase the mobility in the center town. Returning to our business unit, new business unit, Circor Economy, we want to highlight that we were awarded a new authorization to convert two biogas plants to biomethane. You remember it is our portfolio, AgriPower, in which we are working more and more to convert these plants from biogas to biomethane. and the startup of a new water treatment plant in Calvisano in the province of Brescia. It's a plant that works for more or less 12,000 inhabitants. And in addition, we've also completed the acquisition from Edison of the Sesto San Giovanni cogeneration plant with an installed capacity of 110 MW that in our strategy can be very interesting not only because it's connected with the district heating in Sesto San Giovanni that is, let's say, the main strategic rationale for why we bought this plant But also because if you imagine the development in data center in the regional law, but in particular in Milano, there are not so many plants able to give baseload energy with a night power in the center of a city like this one. So can be a future development of integration between supply and data center. I also remind you that overall, we are now managing a company with 31% of ABDA generated from regulated activities, growing from 26, 25 in Q1, 24. thanks to both organic investment, so the huge investment in particular in electrical distribution in our historical asset in the last year, and due to the acquisition of the new company, Duality. And last but not least, we are maintaining a firm commitment to sustainability. And one evidence is that but we were the first issuer of an EU Green Bond compliant with the EU regulation and achieved an NZR3 score in Moody's net zero assessment. So, looking at the slide number two, number three, sorry. In this slide, you can see our number. The consolidation of a new company, Duereti, and the increase in energy prices, energy and gas and tune, led to a grow in revenues about 16%. And the reported BDA slightly decreased to 703 million euros, that is... completely aligned or better than our forecast in our industrial plan presented two years ago and let's say net to the extraordinary effects deriving from the hydroelectric production during 24 that is a The single elements more disrupted between one year and the other, the BDA grew by 1%. The net profit before ordinary transaction, for example, excluding special items, for example, in the first quarter, of the current year, 5 million euros, referring to the price adjustment relating to the acquisition of the stake in TechnoA, TechnoA is the company in Crotone, or is the Western energy plant for industrial waste in Crotone. So amounts to 257 million euro, registering a 13% decrease compared to the first quarter of the previous year. And once again, if we look at the extraordinary effect derived from the hydro production, I remember that last year was 1.1 terawatt hour more than the average level of the last five years. The decrease in net profit before ordinary transaction is 5%. The net profit, including special items, reached an amount of 252 million euro. And the focus on financial discipline continues, allowing us to maintain a solid financial ratio, thanks to an operating cash flow that guaranteed coverage of capex for a period and the decrease in the net financial position in the ratio between the net financial position and BDA to 2.4 compared with 2.5 of 24. So a little bit better compared to what we closed last December, the acquisition, the big acquisition of Duer 80. In slide number four, there are the capex. You see, the organic capex in this quarter amounted to 300 million, up to 32% compared with the same period of 24. Developing a capex that for us is, let's say, the result of our 10 years in the industrial plan amounted to 174 million euro. mainly aimed at strengthening and improving the efficiency of networks. Because if you look on the right side, you can see that 123 million is in the smart infrastructure mainly. in electrical grid to support decarbonization, the development of photovoltaic plants, increasing the flexibility of generation plants, that means, for example, the new plant in Monfalcone, the recovery of materials and energy, and the digitalization of the group. So I leave the floor to Luca to go more in detail with the single business unit.