ACEA (ACE) Investor presentation summary

Strategic positioning and business model

• Maintains a strong focus on regulated infrastructure, with 90% of EBITDA from regulated activities by 2028, emphasizing water, electricity grids, and environment sectors.

• Pursues growth through strategic investments, operational excellence, and disciplined capital allocation, with a robust asset rotation strategy to optimize the portfolio.

• Expands internationally in water and environment, leveraging innovation and partnerships for selective growth.

• Prioritizes ESG integration across all business lines, with a sustainability plan aligned to the UN SDGs and €5.4bn in ESG-related investments planned.

• Places people, systems, and processes at the core of growth, with initiatives in talent development, digitization, and process optimization.

Financial performance and guidance

• Achieved record 2025 results: pro-forma EBITDA €1.42bn (+8% YoY), net income €481m (+15% organic), and capex €1.24bn net of grants.

• 1H 2026 saw revenues and EBITDA both up 4% YoY, with organic net profit up 16% and a significant capital gain from asset disposals.

• Maintains a solid financial structure: Net Debt/EBITDA at 3.28x in 2025, improving to 3.1x by 2028, with stable investment-grade ratings.

• Operating free cash flow improved to €206m in 2025, supporting ongoing capex and dividend growth.

• 2028 targets: EBITDA ~€1.8bn, net profit ~€375m, annual capex ~€1.5bn, and cumulative dividends >€1bn.

Business segment highlights

• Water: Largest operator in Italy, leading in innovation and resilience, with major projects like the Peschiera Aqueduct and international expansion.

• Electricity: Second-largest distributor in Italy, investing in grid modernization, smart public lighting, and e-mobility infrastructure.

• Environment: Fifth-largest in Italy, expanding waste-to-energy and recycling, with a focus on circular economy and new technologies.

• Engineering: Center of excellence for major projects, integrating advanced R&D and supporting internal and external clients.

• Production: Strong renewables pipeline (870 MW PV), aiming for carbon neutrality and full energy balance.