A2A Spa Ord

Hello and welcome to A2A H1 2025 results call. My name is Laura and I will be your coordinator for today's event. Please note this call is being recorded and by the duration of the call the lines will be on listen only mode. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star 1 on your telephone keypad to register your questions. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now hand over to your host, Marco Porro, Head of Investor Relations, to begin today's conference. Thank you.

Good afternoon, everyone. Thank you for taking the time to participate to our first half presentation. The conference will be led by our CEO, Renato Mazzoncini, and the CFO, Luca Moroni. I leave immediately the floor to Renato for the first part of the presentation, and then Luca will jump in.

Okay. Thank you. Thank you, guys. Thank you to be with us. So, starting from slide number two, H1 results demonstrate the execution of our strategic plan. You remember we presented it in November, laying a strong foundation for the continuous growth of our company. And looking at the main achievements, we can start from some industrial projects. passion in electricity. You know, our strategy in energy transition is very clear. And some achievements for this semester are the fact that we completed the asset rotation towards electricity grids. As you know, since January is The assets we acquired from Enel, in particular in the province of Milan and the part in the province of Brescia, have been successfully integrated into our asset portfolio. And at the end of this semester, with, let's say, a very clear punctuality, we finalized the sale of a part of our gas network to the company Ascopiave for a consideration of 430 million euros, which we already cashed in exactly in the 3rd of June. Regarding our grid development as presented in the plan, We recently inaugurated a primary substation in Brescia. It's only one example because you know the primary substations are the king of the power grid. In our industrial plant we have 3.4 billion years of CapEx in the next years in power grid. What is very important is that we were able to push strong CapEx also in Duerete, that is exactly the part of the network that we bought from Enel in the first month of our new management of the network. That is not so normal, let's say, because to be able to invest strongly in networks like you need to know very well how the network is built and so on. And so Howard Engineering was able really to start very, very quickly in CAPEX, in the CAPEX plan also in this network. Once again, discussing about... The strategy in electricity, we reached 1.6 million electricity customers on free market, free mass market. Consider that our strategy, also considering our trajectory of Next Zero, is to shift the to switch more and more from gas customer to electricity customer. And also in this semester, the growth of the free mass market electricity customers was 11%. So very, very important. The second achievement is business risk profile optimization. And in our generation business, business unit, we secured a 17-year LNG supply agreement with British Petroleum for more or less 1 billion of cubic meters for every year of GNL, ensuring greater security of supply and price stability. So we are very happy, and this contract will start from the next year. We further improved the visibility of the result stream in our district eating network, in particular by winning the tender for 20-year concession in Sesto San Giovanni that is in the north of Milan. It is a large part of the metropolitan areas of Milan, more or less 100,000 people. in evidence so very important and we remind you that we know reach the regulated bda that arrives more or less 31 32 percent thanks in particular to the increasing exposure of our asset portfolio to regulated and quasi-regulated activities of course the acquisition from Enel was very important for this target. As you already know, we are also enthusiastic about the new opportunity quickly materializing in our sector with which we look forward to illustrating surely in the next Capital Market Day, but in the meantime, Probably some of you have seen that we announced the inauguration of the first liquid-cold data center connected to the district heating. You remember in November we talked during the presentation of our industrial plan about the opportunity to exchange heat from the data center to the district heating. You remember that there is a potential target in Milano in particular to reach 150,000 equivalent apartments with heat recovery coming from this heating. And we did it with a first pilot started in Brescia and the next one will arrive in the next few months in Milano. And We continue to invest in our industrial development. We have already reached more or less 400 million euros in development capex in the semester. So the total capex in the semester is, I don't remember, is more or less 700 million. But once again, 60% are capex. in development, and this is the reason for why our growth is exactly stable and continuous. It's very important also, of course, our relationship with our stakeholders, a dividend payment of more than 300 million euros, in particular 313 million, to our shareholders in line with the promised annual increase, 4% every year, you remember, along with consistent industrial growth. And from the other side, the launch of our company's employee stock ownership plan with an impressive subscription of 86% of our colleagues, was a target for us really very important to engage our employees and to increase the commitment to the future target of the company. Looking at slide number, looking at slide, sorry, in the right part of slide number two, You can also look, of course, how our mood is upgrade of rating outlook to positive. That is, once again, the proof that also from a financial point, we are working well. Looking at slide number three, the consolidation of the new company, Duaretty, from Enel, and the increase in the price of energy commodities. led to an increase in revenues, more or less 13%, so $127 billion in the period. The reported VDA recorded a limited decrease, but reaching $1.22 billion. But as you remember, surely from our call earlier, in the first quarter the big difference is there are main differences against 24 but the biggest one is the extraordinary effect arriving from hydroelectric production during 24 you remember we closed the year with 5.2 terawatt hours and If we offset this extraordinary effect, the BDA grew in 25 against 24 in the first half by 2%. The net profit for the same reason decreased by 11%, but once again, compared with adjusting, let's say, by the effect of the hydraulic production, is increased by 1%. The order in net profit excluding special items, for example, in the other 8 million of euros, referring to the price adjustment or relating to the acquisition of a stake in Tecnoa. Tecnoa was a the industrial waste-to-energy plant in Crotone, in Calabria, in the south of Italy, and showed a decrease of 11% compared with the H124 standing at 426 million euros. And once again, adjusting 24 with the hydroelectric production, there is an increase by 2%. Focus on financial disciplines continuously, allowing us to improve the solidity of the financial ratios. And as you can see, we arrive to the net financial position on a BDA ratio in 2.3%, that is a decrease compared to the 2.5 or 24, and is a very good result also because, let's say, is the flexibility that can allow us to face new opportunity in the future. Slide number four, the CAPEX. The CAPEX is our key elements in our strategy. And also this year, the increasing is strong, 23% compared with 24%. You remember last year, we did also on top on the CAPEX, the industrial CAPEX requisition in ENA. So the total investment last year was... 2.9 billion. This year, the target arrived to approximately 1.7, 1.8, and we are working to reach this target. 403 million are development. The rest is maintenance, more or less, and something peanuts mandatory. The large part of the CAPEX are smart infrastructure. This is the reason for why our RAB continues to increase. But also circular economy and generation are a fundamental part of the CAPEX plan. And Once again, the division between energy transition and circular economy, so our two pillars of industrial plan are 72-28. It's very important to look that the breakdown by SDGs is 85 aligned with SDGs against 15% not aligned. And also the alignment with the EU taxonomy is very high. So we are 51% aligned and eligible 72%. And this is very important because it's the reason for why our capacity to increase the green part of our debt is possible to reach. So I leave the floor to Luca for detailing the BA.