Overall investments will amount to €7.6 billion, with average annual capex corresponding to €1.5 billion, compared with around €1 billion during the period 2020-2023.
The 2024-2028 Business Plan, presented on 6 March 2024, features a steady increase in investments and RAB, which will translate into a solid growth in economic and financial results.
The 2024-2028 “Green Diligent Growth” Plan, focused on consolidation of our infrastructure leadership in the regulated sectors pertaining to Water, Electricity and Environment, leverages financial discipline with regard to costs and investments, to support cash generation and optimise our financial structure and capital allocation.
From 2020-2023 | To 2028 | ||
Green | % regulated EBITDA¹ | 87% | 90% |
Capex ESG linked (yearly) | 0.4 bn € | 1.0 bn € | |
Diligent | EBTDA margin | 30% | 43% |
NFP/EBITDA | 3.5 x | 3.1 x | |
Growth | Total Capex (yearly) | 1.0 bn € | 1.5 bn € |
Net Profit (CAGR) | 1% | 5% |
1. Regulated Includes, in addition to the regulated businesses Water Italy and Networks, the Public Lighting and Environment business
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Overall investments will amount to €7.6 billion, with average annual capex corresponding to €1.5 billion, compared with around €1 billion during the period 2020-2023.
EBITDA during the plan period shows an annual average growth of over 5%, to reach €1.8 billion by the end of 2028 (of which 90% from regulated businesses), compared with €1.4 billion in 2023 (+29%). This increase is attributable above all to organic growth and operating efficiency.
Net profit will also have a CAGR of 5% during the plan period.
Consolidated RAB (Regulatory Asset Base) will reach €10.5 billion by 2028, up by 42% compared with 2023, indicating a CAGR of over 7% during the plan period.
The substantial operating cash flow generated during the plan period, together with the overall improvement in working capital, will also guarantee an expected reduction in the NFP/EBITDA ratio from 3.5x in 2023 to 3.1x in 2028.
Dividends will show a steady growth throughout the plan period: we anticipate a total distribution of €1 billion.
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EBITDA of the Water Italy regulated business is expected to show a steady increase (CAGR 2023-2028 +7%), driven by organic growth.
We aim to carry out a structured investment plan worth €4.7 billion to develop high quality and reliable infrastructures, enabling further improvement of operating efficiency in resource management.
RAB in 2028 is expected to reach €6.9 billion.
EBITDA pertaining to the Electricity sector is expected to steadily increase (CAGR 2023-2028 +2%), mainly thanks to development investments, from €0.5 billion in 2023 to €0.6 billion in 2028. Overall investments during the plan period will amount to €2.0 billion.
RAB is expected to reach €3.7 billion by 2028.
EBITDA pertaining to the Environment business is expected to increase during the plan period (CAGR 2023-2028 +13%), from €84 million in 2023 to €155 million in 2028. Investments, totalling almost €500 million, will enable a growth in waste treatment capacity. The volume of waste treated is expected to reach 2.2 million tonnes by 2028 (1.8 million in 2023).
