ACEA (ACE) Investor presentation summary

Strategic context and market environment

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

• Navigates a volatile macroeconomic context with new regulatory scenarios for water and grids, including updated WACC and tariff mechanisms.

• Faces rising energy and gas prices, moderate inflation, and a stable interest rate environment following ECB rate cuts.

• Significant green investments are planned across Europe, especially in water, electricity, and circular economy infrastructure.

• Emphasizes the need for technological innovation, workforce skills, and resource availability to address sector challenges.

Financial performance and results (2024–1Q 2025)

• 2024 saw record EBITDA (€1,557m, +12%), net profit (€332m, +13%), and capex (€1.4bn gross, +26%), with a net debt/EBITDA ratio improving to 3.18x.

• 1Q 2025 continued the growth trend: revenues up 4%, EBITDA up 7%, net profit up 3%, and capex stable at €242m net of grants.

• Regulated businesses contributed ~87% of recurring EBITDA and ~89% of capex in 2024, with similar trends in 1Q 2025.

• Operating free cash flow was positive in 2024 (€373m) but negative in 1Q 2025 (–€127m) due to working capital absorption.

• Financial structure remains solid, with long-term debt at favorable rates and improved credit ratings.

Strategic plan and 2028 targets

• Strategy centers on "Green Diligent Growth": focus on regulated infrastructure, ESG integration, operational excellence, and disciplined capital allocation.

• Targets for 2028: EBITDA ~€1.8bn (90% regulated), net profit ~€375m, cumulative capex €7.6bn (91% regulated), and RAB €10.5bn.

• Dividend per share to grow at 4% annually, with over €1bn in dividends planned over the period.

• ROIC expected to rise across all business lines, with group pre-tax ROIC reaching 8.4% by 2028.

• Potential upside from asset rotation, partnerships, and selective international expansion.