Discover ROAD Innovation District project
The 2020-2024 Business Plan, approved and presented to the financial community in October 2020, focuses on the development of infrastructures and sustainable growth and envisages investments totalling 4.7 billion Euro.
The sum of 615 million Euro is intended for innovation. We aim to strengthen our position in all our sectors of operation (water, electricity distribution, environment, generation, commercial and trading). We forecast a major upturn in EBITDA, underpinned by the RAB growth in regulated sectors and higher dividends.
Total investments: 4.7 billion Euro is forecast by end 2024, including 4.3 billion Euro relating to industrial capex, of which more than 80% will be allocated to regulated businesses. Of the overall plan investments, 615 million Euro is intended for technological innovation projects; 2.1 billion Euro is linkedin to specific sustainability objectives.
EBITDA: implementation of these investments will support the upturn in EBITDA, which is expected to exceed 1.4 billion Euro in 2024, with an average annual growth of approximately 7%.
The increase in EBITDA is mainly derived from:
Dividends: 860 million Euro will be available for distribution during the Plan period, with payment of a 0.85 Euro dividend per share in 2022 and a proposed dividend of 0.85 Euro dividend per share again in 2023.
We are the leading Italian operator in the water sector, with approximately 9 million residents served across 5 regions, the said area accounting for 51% of our 2022 consolidated EBITDA. Our investments in the water business, in 2022, amounted to over 560 million Euro.
We expect to reach EBITDA of 704 million Euro in 2024, with an average annual growth rate of 7% during the period 2019-2024. We will invest 2.2 billion Euro during the Plan timeframe to support sector development and reduce the infrastructure and plant gap in the territories where we operate, focusing on the resilience of infrastructures and expansion of the sewage treatment plants.
We intend to continue protecting the water resource by improving the quality and efficiency of the service offered in our territories of operation through key actions, such as:
Recent targets achieved: go-ahead for the “doubling” of the Peschiera aqueduct (one of the ten projects of national interest), due to cost 1.2 billion Euro, with 700 million Euro covered by public funding allocated in the 2023 Stability Law; reduction of water losses in the Rome network; allocation finalised for NRRP projects worth approximately 560 million Euro.
We are among the top operators for energy distribution in Italy, with 9.4 billion kWh of electricity distributed in 2022. EBITDA and investments in 2022 amounted to, respectively, 352 million Euro (27% of consolidated EBITDA) and 269 million Euro. We intend to reach EBITDA of 402 million Euro by the end of the Plan period, reflecting a 2019-2024 average annual growth of 3%. We shall be allocating 1.3 billion Euro to investments for infrastructure resilience and upgrading.
In this sector, we plan to become a reference point in the energy transition process with development projects aimed at satisfying the growing electricity demand and the integration of distributed generation within the delivery system.
Main actions:
Recent targets achieved: construction of new high voltage power line for Rome (cutting CO2 emissions by 600 kg/year); launch of innovative meter for balancing energy demand and supply; allocation finalised for NRRP projects worth approximately 174 million Euro.
We have been present in the Environment business for over 10 years, particularly as regards waste disposal and energy recovery. We are one of the leading Italian players in this sector and the benchmark operator for Central Italy. This area accounted for 8% of the Group’s 2022 EBITDA, with investments totalling 46 million Euro.
By the end of 2024 we expect to reach EBITDA of 127 million Euro, with an average annual growth of 20% during the period 2019-2024, supported by a 445 million Euro investment plan, to be used above all for consolidation of the acquired companies and the development of new M&A projects, enabling an increase in the volume of waste processed by the group to reach 2.9 million tons by 2024.
We intend to improve the waste recovery cycle, in line with circular economy development objectives, enhancing our role in energy recovery and the disposal of mixed and organic waste as well as in waste-to-material (treatment and recycling of paper and plastic). We also aim to consolidate our role within the sector of special waste.
Recent objectives achieved: go-ahead for construction of the fourth line for San Vittore waste-to-energy plant; increased commitment to waste recovery in Rome; on-time submission of plans for the Rome waste-to-energy plant; enhanced position in central Italy by way of several acquisitions and development projects.
We are a major Italian operator in the field of renewable energy generation. In 2022, EBITDA for this area amounted to 90 million Euro.
We predicted EBITDA of 62 million Euro by the end of the Plan period, with a 2019-2024 average annual growth of 7% and investments totalling 245 million Euro, primarily in M&A aimed at boosting electricity generation from renewable sources to support the decarbonisation and energy transition processes. We intend to increase our installed photovoltaic plant capacity to 747 MW by the end of 2024, also through partnerships.
In 2022, the Commercial and Trading segment posted EBITDA of 90 million Euro (7% of consolidated EBITDA). Our objective is to achieve EBITDA of 123 million Euro in 2024, reflecting an average annual growth rate of 12%, and a target for 2024 of 1.6 million customers on the free market, with an overall 17% increase in the number of customers. We shall be concentrating above all on the following:
The commercial context, which will become increasingly competitive and challenging after the conclusion of the enhanced protection regime on the electricity market, will offer Acea an opportunity for growth. We in fact intend to play a leading role in the consolidation process that will open up following the complete liberalisation of the sector.
The know-how developed in more than a century of operations through the company Elabori, a “building-oriented company” for the turnkey management of construction and engineering activities, with over 100 million Euro of services performed each year, is at the disposal of the entire Group.
Moreover, via the acquisition of Simam we have enhanced our infrastructure construction skills, ensuring efficiency and flexibility in the operational management of industrial activities, with particular reference to the circular economy.
Regarding this business area, by the end of 2024 we expect to reach EBITDA of 22 million Euro, with an average annual growth of approximately 12% during the period 2019-2024. Over the plan timeframe we intend to invest 71 million Euro, mainly in the implementation of facilities from an EPC (Engineering, Procurement & Construction) perspective.
In recent years we have enhanced our presence and growth in Latin America. In the business Plan, we estimate that EBITDA in 2024 will reach 28 million Euro, with accumulated investments amounting to 25 million Euro during the period 2020-2024.
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