A2A Group’s Board of Directors approved the Group’s 2016-2020 Strategic Plan

Strategic guidelines for the 2015-2019 Plan confirmed

Further increase in investments
2.2 billion euros of investments in five years (+7% compared to the previous 2015-2019 plan)
Important rebalancing and innovation in the industrial portfolio
strong developments planned for the environment, smart networks and new energy services
Substantial growth of the EBITDA
1.30 billion euros of gross operating margin in 2020 (+24.4% compared to the 2015 results)
Expected increase in dividends confirmed
After the uptick in dividends for the years 2014 and 2015 an increase to 7.5 cents/share is expected from 2019
Further substantial reduction of the Net Financial Position
At 2020 Net Financial Debt reduced further, by over 500 million euros compared to 2015 despite larger investments and dividends
Additional benefits from local aggregations
The EBITDA and the profit per share will be further strengthened by the territorial aggregation transactions currently in progress but not yet incorporated into the Plan


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The 2016-2020 Strategic Plan of the A2A Group

MILAN, 07-Apr-2016 — /EuropaWire/ — At yesterday’s meeting of the Board of Directors of A2A the Board examined and in the late evening approved the 2016-2020 Strategic Plan of the A2A Group.

The main aim of the new Industrial Plan, which does not yet include the further benefits deriving from the local aggregations plan in progress, is to confirm and strengthen the strategic approach announced last year in light of the new, worse, energy scenario: transform A2A into a more modern multi-utility company, a leader in environment, smart networks and new energy models, which is more balanced, profitable, and capable of seizing the opportunities that will open up in the Green Economy, Smart Cities and Smart Grids.

The 2016-2020 Strategic Plan of the A2A Group confirms all the business objectives already defined one year ago, and in addition plans new initiatives aimed at countering the adverse conditions that have occurred in the energy market as well as some negative exogenous factors (delayed start of the Capacity Market; lower remuneration in the networks sector; reduced tariffs in Montenegro). The main new initiatives that have helped to, at least partially, offset the aforementioned scenario include,in particular:

  • the identification of further operational efficiency initiatives – through the implementation of the “EN&A Project” – for around 50 million euros incremental of EBITDA when fully operational, as the result of greater savings (40 million euros) and margins;
  • the strengthening of the growth through around 160 million euros of incremental investments focused primarily in the integrated water cycle, “smart” energy distribution systems, commercial development and smart gas meters in Montenegro too and external growth ransactions (M&A and development initiatives);
  • the identification of further territorial aggregation routes and business partnerships in addition to those already finalised in the previous Plan.

The main development lines of the Plan continue to be characterized by three macro-areas of intervention, namely:

1. Restructuring and reduction of exposure in the thermoelectric sector;
2. Relaunch of the investments in the key areas of the environment, networks and the energy free market;
3. Redesign of A2A’s mission to seize the opportunities deriving from the future technological and industrial evolution of some businesses of the Group.

Full text of the press release

For further information:
Media relations: tel. 02 7720.4583, ufficiostampa@a2a.eu
Investor Relations: tel.02 7720.3974, ir@a2a.eu

Duty to notify the public in accordance with Consob decision no. 11971 of 14.5.1999 as amended.

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