ACEA (ACE) Investor presentation summary

Strategic positioning and business model

• Operates as a leading multi-utility infrastructural operator with low leverage, focusing on regulated businesses in water, electricity, and environment sectors.

• Maintains a strong presence in Italy and internationally, serving over 10 million people in water, 1.4 million electricity customers, and managing 1.7 million tons of waste annually.

• Emphasizes sustainable infrastructure, innovation, and operational excellence, with a mission to ensure access and circularity of critical resources.

• Strategic focus on expanding regulated infrastructure, ESG integration, and disciplined capital allocation to drive shareholder value.

2024 financial and operational performance

• Achieved record EBITDA of €1,557m (+12% vs 2023) and net profit of €332m (+13% vs 2023), with strong growth in regulated businesses.

• Revenues reached €4.3bn (+5% vs 2023), with 87% of recurring EBITDA and 89% of capex from regulated activities.

• Net debt/EBITDA improved to 3.18x from 3.49x in 2023, reflecting robust cash flow and financial discipline.

• Capex hit an all-time high at €1.44bn gross, with 19% growth net of public grants, and operating free cash flow rose to €373m.

Regulatory and market environment

• New regulatory periods for water and grids with increased WACC (water: 6.1%, grids: 6.0%) and higher tariff caps.

• Commodity prices declined in 2024, with energy and gas prices falling and inflation moderating to 1%.

• Interest rates trended lower, with ECB rate cuts and average cost of debt at 2.16%.