The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Javier Suarez - Mediobanca - Analyst
: Hello. Good afternoon and thank you for the presentation.
Question: Javier Suarez - Mediobanca - Analyst
: Okay, I'll start again. My first question is, what is a reasonable assumption for hydraulic or water production in 2024 and 2025 from your viewpoint?
Connected to this, I would like to know the level of prices that you established for 2024 and 2025, the contribution of the DSM market in the first
half and the expectations for the whole year 2024.
The other question is, with regard to the guidance, can you give us guidance in terms of data by year end? I would like to understand more of the
change in working capital, the EUR240 working capital discrepancy. Where do you see it? And then the auction for the capacity market of 2025.
We saw the outcome as a reasonable guidance for the auction for 2026. Thinking of 2028, how can the profitability of auctions be impacted as a
result of those existing options? Thank you.
Question: Javier Suarez - Mediobanca - Analyst
: So, the options for capacity in the future, I think they will include the existing capacity plus what will come for storage. How will this affect the
profitability of the business from 2028 onwards? That's my question.
Question: Stefano Gamberini - Equita - Analyst
: First of all, I have two questions. With the transaction in Ascopiave, are we replacing the minorities to finance the retail? So, will the process of the
issuance of hybrid bond be completed? And this is the second step. Or should we expect something more in addition to this? I understand that
the evaluation of RABs cannot emerge. I was making considerations considering the RAB of A5.
You can estimate the value to be at about EUR150 million of RAB. Maybe you want to comment on that. The second question is about 2025. Sorry,
the 2024 guidance. The energy generation market part has been increased in the guidance. It should be about EUR1.3 billion of EBITDA at year
end.
And you said you can do even better in the energy production. I'd like to focus on 2025. What can we expect from this? You said increasing capacity
market. But then what's going to happen with the other building blocks? There are items that can be considered to be one of this year.
And I'd like to understand more of the market side. (multiple speakers) You said that there are EUR80 million, EUR90 million of assets to maintain
retaining activities. I don't understand what happens. Next year with the obtained customers and the other disappears, the EBITDA will increase
by EUR80 million. Did I get you correctly?
(inaudible) The last thing I would like to understand relates to hydroelectric energy. For Iren, it seems that the offering, the bid of project financing
will be confirmed because the appeal of the local operator has been rejected. So, do you think this could be the guideline for the future? Or do you
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JULY 30, 2024 / NTS, A2.MI - Q2 2024 A2A SpA Earnings Call
still believe that the Italian government until year end can intervene with the European Union in terms of lengthening of concessions in return for
investments?
Question: Stefano Gamberini - Equita - Analyst
: Thank you. And what about tenders and auctions?
Question: Emanuele Oggioni - Kepler Cheuvreux - Analyst
: Good Afternoon. Thanks for your presentation and congratulations for your delivery. I have some follow-up questions. I need more details on topics
you have already presented. You have given a revised H1 2024 RAB in distribution, EUR1.7 billion. Can you please provide an update also on the
figure of delivery points?
And then, talking about capacity market, this EUR60 additional millions versus business plan in 2025, are they maintained if we assume to have
the same prices? So, will this EUR60 million be replicated also in 2026 and 2027? Can you please confirm that? And the last question is about
profitability of the retail business.
It's not clear to me, based on the previous answer, whether in 2025, at the end, we will have a net increase, assuming a stable customer base,
whether we will have a net EBITDA increase driven by the fact that we will no longer have these additional EUR80 million marketing costs. That's
not fully clear to me. Thank you.
Question: Emanuele Oggioni - Kepler Cheuvreux - Analyst
: A follow-up question on potential new acquisitions, maybe from 2025 onward. Will the focus be on generation of renewables or electricity networks
with further disposals, maybe, of gas network parts? But from this point of view, in the last few months, especially in Sardinia, apparently, the
opposition by local community to large working sites, which affects capacity to being sold, several manifestations were organized against that.
People are blocking ports and so on. I would like to have your comment on this.
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JULY 30, 2024 / NTS, A2.MI - Q2 2024 A2A SpA Earnings Call
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