•Focus on operational and organizational efficiency
•Average annual EBITDA growth rate of approximately 11% for 2010-2013
•Increased profitability (pre-tax ROIC of 14% by 2013)
•Consolidated investment plan of €1.3 billion for the three-year period
•Significant improvement of the financial structure (debt/EBITDA ratio of 1.9x by 2013) before dividend distribution
Rome, 22 December 2010 – The Board of Directors of Acea S.p.A., chaired by Giancarlo Cremonesi, approved the Group’s Business Plan for 2011-2013.
The Plan sets out concrete and realistic targets to generate shareholder value growth, through higher profitability, improved operational efficiency – to be pursued by paying constant and utmost attention to customers and service quality – and the achievement of a balanced financial structure.
The Plan’s targets have been defined on a like-for-like basis for the Group’s business. Any further strategic development – which have already been identified and are consistent with the Group’s strategy – will be evaluated from time to time.
The Group features a portfolio of mainly regulated businesses and the Plan is based on the following key drivers:
- organic growth and operational efficiency: to be achieved by rationalizing organizational/industrial processes, by improving operational efficiency in all the business and the parent company’s areas, the disposal of non-core assets;
- downstream repositioning: to be achieved by optimizing the customer mix, improving the efficiency and effectiveness of energy sales, the development of dual fuel offerings and the search and training of sourcing & trading professionals.
EBITDA growth is accounted for by internal efficiency actions (47%), revamping and development of new plants (33%), the organic growth of regulated businesses (13%), downstream repositioning strategies (7%).
A further upside to the targets of the Business Plan might be the implementation of strategies based essentially on:
- development of the core business: to be achieved mainly in the water sector, thanks also to the opportunities made available by regulatory developments, and in the gas sector, through the possible entry into the distribution business in Rome;
- development of “selected” investments in high potential businesses, such as the “waste to energy”, power production (to guarantee an adequate coverage of electricity sales through an appropriate energy mix) and renewable energy (photovoltaic) sectors in the area of Rome;
Acea Group: main financial and operating targets by 2013
Based on the above strategic guidelines, considering the new scope of the energy business following the agreement with GDF Suez, and without the effects of extraordinary and significant transactions, the Business Plan forecast:
• EBITDA of €865 million by 2013, over 80% of which from regulated activities. EBITDA is expected to grow on average by 11% between 2010 and 2013;
• Pre-tax ROIC of 14% by 2013;
• Investments for a total of €1.3 billion over the three-year period, over 70% of which concentrated in regulated water and electricity distribution activities;