Half Year 2021 A2A SpA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : A few questions also from my side. The first regarding the Waste business. Could you give us your view of the recent consultation paper issued by the regulator about the urban waste and in particular, the fact that they set some essential plans in the system that will be regulated at RAB. Do you see some risk about this situation? Or are you happy with the new consultation paper? I don't know when they will disclose the final regulation, but should be shortly about the waste business. And what are the risks that you see mainly related to the decision from the region about the list of these essential plans? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 30, 2021 / NTS, A2.MI - Half Year 2021 A2A SpA Earnings Call The second topic is still related to the waste, in my view, but in general, considering the recovery plan. What are the upside the day after of disclosure of this recovery plan for A2A. What I mean the main 3 upside that you see in the waste business, I guess, but also in the other ones on your point of view? And the third point is still on this JV with Ardian. Just if you can help us to understand why you didn't already set the fact that the Ardian could confer 500-megawatt of wind assets, but you will set the price later. And the second, I'd like to understand better is how this JV could grow up to 3.7 gigawatt of capacity? Do they have the sources, the strength to grow so strongly? Are there some risks that you kept your ability to grow through this JV? That's my 3 questions.

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : About Ardian?

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : Yes. My question was regarding the agreement with them why they will directly confer the 500-megawatt of capacity and how this JV could then ramp up growth to north of 3.7 gigawatt, if this JV has an enough capacity to grow so much?

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : Just a few questions I left. First, regarding the hydroelectric concession. There were some statements from development ministers in these days. Could you elaborate a little bit what do you expect on this? If I'm not wrong in some regions where this law are already approved, this could be effective and the national law with regard just the other regions that sounds strange to me. Just to understand what is the best scenario for you? And what is happening in your discussion with the government? Second, regarding the page 10, the Slide 10. I do not understand exactly this A2A achieved prices. It increased from EUR 40 to EUR 53 the mega tower in first half, while in the first quarter, the same figure was EUR 56 and EUR 63. I do not understand why the first quarter was so high and the second declined. But in particular, I do not understand the first half '20 at EUR 40, if I'm not wrong, you had something north of EUR 50, just in order to have a clear picture about that. And finally, there are some rumors that the government is also working on a new decree in order to accelerate all the authorizations for renewables, just to jump from 1 gigawatt per year to 8 gigawatt per year of new installed capacity. You awarded about the situation and you see some upside for A2A? I don't know. It seems to me that this could be interesting for companies with authorization in their hands. What is your judgment on this?

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : Yes. Just was on this comparison versus the first Q that was amazing to me from EUR 63 to EUR 53, but it's fine.