Acea — Earnings Release 2022

Mar 8, 2023

Press Release

ACEA'S 2022 FINANCIAL STATEMENTS APPROVED: GROWTH IN EBITDA AND HIGHER INVESTMENTS, DRIVE TO DELIVER STRATEGICALLY IMPORTANT PROJECTS FOR WATER, ENERGY INFRASTRUCTURE AND ENVIRONMENT

• * * * • Capex up, with focus on regulated businesses: €1bn, up 8% versus 2021
• EBITDA growth, with increasing focus again on regulated businesses (86%1 of total): €1.3bn, up 4% versus 2021
• Net profit broadly in line, excluding impact of windfall tax (€39m); other negative impacts (rising interest rates and increased credit loss provisions) offset by effective cost cutting measures in fourth quarter

* * *

• Water: (i) go-ahead for planned doubling of Peschiera aqueduct (one of ten infrastructure projects of national interest), due to cost €1.2bn, with €700m covered by public funding allocated in 2023 Stability Law; (ii) reduction of water losses in Rome network; (iii) allocation finalised for NRRP projects worth approximately €560m
• Energy Infrastructure: (i) construction of new high voltage power line for Rome (cutting CO2 emissions by 600k per year); (ii) launch of innovative meter for balancing energy demand and supply; (iii) allocation finalised for NRRP projects worth approximately €174m
• Environment: (i) go-ahead for construction of fourth line for San Vittore WTE plant; (ii) increased commitment to waste to energy in Rome; (iii) on-time submission of plans for new WTE plant for Rome; (iv) strengthened position in central Italy following series of acquisitions and development projects

* * *

Rome, 8 March 2023 – Today's meeting of the Board of Directors of ACEA, chaired by Barbara Marinali, has approved the separate and consolidated financial statements for the year ended 31 December 2022 and the Sustainability Report – Consolidated Non-financial Statement for 2022.

ACEA's CEO, Fabrizio Palermo, said: "2022 was a challenging year due to geopolitical instability leading to higher inflation and major volatility in the energy markets. ACEA recorded a positive performance, also thanks to the material actions taken in the latter of the year. These included cost efficiency measures, increased operational efficiency and a recovery in margins. A large number of industrial initiatives were undertaken towards the end of the year, above all in the water and environment segments. In terms of financing, in January, ACEA made a successful return to the capital markets, issuing a green bond worth €700m at the most competitive rates in the market. In 2023, in a scenario that is foreseen to remain challenging, we expect to continue to deliver positive

¹ Includes EBITDA from Environment segment.

growth, benefitting from the further steps taken by management since the start of the year to optimise the Group's industrial and financial performance."

FINANCIAL HIGHLIGHTS

• Revenue €5,138m (up 29% versus 2021)
• EBITDA €1,305m (up 4% versus 2021)
• Group net profit €280m (down 11% versus 2021 due to windfall tax)
• Capex2 €1,001m (up 8% versus 2021)
• Net debt €4,440m (€3,988m at 31 December 2021)

CONSOLIDATED FINANCIAL HIGHLIGHTS
(€m)	2022	2021	% change
Consolidated revenue	5,138	3,972	+29%
EBITDA	1,305	1,256	+4%
Group net profit (after non-controlling interests)	280	313	-11%
(€m)	2022	2021	% change
Capex	1,001	931	+8%
(€m)	2022	2021	% change
Net debt	4,440	3,988	+11%

• Proposed dividend: €0.85 per share, in line with 2021 in a scenario marked by uncertainty and volatility (payout 65%, based on net profit after non-controlling interests).

SUSTAINABILITY HIGHLIGHTS

• water losses reduction of approximately 30 Mm3 in a year (-6% versus 2021)
• a 68% share of energy produced from renewables out of 941 GWh
• approximately 18,000 prosumer customers (up 14%)
• approximately 37,000 tonnes of quality compost produced (up 31% on 2021)
• 1.42m energy and gas contracts managed; 42% of total electricity sold on the free market is green energy
• Inclusion in the MIB ESG index
• First multiutility to obtain UNI/PdR 125:2002 certification from RINA for gender equality, which also features in the NRRP

GUIDANCE FOR 2023:

• EBITDA growth of between 2% and 4% versus 2022
• Capex broadly in line with 2022
• Ratio of net debt to EBITDA below 3.8x

The Extraordinary and Ordinary Annual General Meeting (AGM) of shareholders will be held on 18 April and 20 April 2023, in first and second call, respectively, to approve the financial statements for the year ended 31 December 2022 and the allocation of profit for the year. The AGM

² Net of grant-funded investment of €49m in 2022 and €23m in 2021. The figure for 2021 does not include investment linked to deconsolidated photovoltaic assets.

will also take note of the consolidated financial statements, the attached reports and the 2022 Consolidated Non-financial Statement prepared in accordance with Legislative Decree 254/2016. The AGM will also be asked to vote on the amendment to art. 15 of the articles of association and, subject to approval of the above change, to re-elect the Board of Directors. The documentation regarding approval of the financial statements for 2022 and reports on the other Agenda items, required by the regulations in force, will be made available to shareholders within the deadline established by law.

The Board of Directors will propose to the AGM the payment of a dividend of €0.85 per share, payable from 21 June 2023. The ex-dividend date will be 19 June and the record date 20 June.

ACEA GROUP'S RESULTS FOR 2022

The resuts highlight the Group's position as an industrial player, with 86%3 of EBITDA generated by regulated businesses and 88%4 of capex focused on regulated activities.

Consolidated revenue amounts to €5,138.2m, an increase of 29.4% compared with 2021, primarily due to increased revenue from the sale of electricity.

Consolidated EBITDA is up 3.9% from the €1,256.1m of 2021 to €1,305.0m in 2022. The performance was influenced:

• positively by the energy market due to the sale of electricity produced by ACEA Produzione and ACEA Ambiente at higher prices; the recognition of the bonus for technical quality in the Water segment; the release of the Terni plant from its obligation to purchase CO2 allowances;
• negatively by the reduction in WACC for electricity distribution from 5.9% to 5.2% (ARERA Resolution 614/2021).

The change in scope contributed approximately €5m to EBITDA following ACEA Ambiente's consolidation of Deco, Meg, Serplast and Italmacero, the positive effect being partially offset by the deconsolidation of photovoltaic assets.

The contributions of the operating segments to consolidated EBITDA are as follows: Water 51%; Energy Infrastructure 27%; ACEA Ambiente 8%; Generation 7%; Commercial & Trading 7%. The contribution to EBITDA from the Overseas and Engineering & Services segments and from the Holding Company is broadly neutral. Over 86% of EBITDA is generated by regulated businesses (Water, Energy Infrastructure and Environment).

Net finance costs of €85.7m are broadly in line with 2021. At 31 December 2022, ACEA Group's all-in cost of debt is 1.44% (broadly in line with the 1.42% of 31 December 2021).

Group net profit is €279.7m, down from the €313.3m of 2021, primarily due to the windfall tax amounting to €38.5m. After excluding the impact of the windfall tax, net profit is up 2%.

From the fourth quarter, ACEA focused its attention on managing costs and investment, launching a timely review of procurement procedures and taking steps to address credit risk through prevention and customer portfolio management. These actions have enabled us to keep costs under control, boost operational efficiency and restore margins, with an overall benefit in the fourth quarter of approximately €40m. This allowed the Group to mitigate the one-off hit to profits during the same period, resulting from the windfall tax totalling approximately €13m, the impact of rising

³ Includes EBITDA from Environment segment.

⁴ Includes capex by Environment segment.

interest rates on finance costs, amounting to approximately €8m, and an increase of approximately €12m in credit loss provisions.

The tax rate is up from 30.0% in 2021 to 37.6% in 2022 due to the windfall tax (the normalised tax rate is 29.8%).

The Group invested a total of €1,001m in 2022, up 8% on the €931m of the previous year. The increase is due to price adjustments in public tenders affecting the Water segment and Areti (Law Decree 50/22 – the Aiuti Decree) and the change in ACEA Ambiente's scope of consolidation. Capital expenditure, of which approximately 88%5 is in regulated assets, breaks down as follows: Water €562m, Areti and Public Lighting €269m, Generation €30m, Commercial & Trading €50m, ACEA Ambiente €46m and other businesses and the Holding Company €44m.

The Group's net debt amounts to €4,439.7m, compared with €3,988.4m at 31 December 2021. The performance of debt reflects, amongst other dynamics, the increase in working capital outflows, linked to volatility in the single national price that has widened the delay between collections and payments by approximately €130m, and payment of the windfall tax.

At 31 December 2022, the net debt to EBITDA ratio is 3.4x and the ratio of net debt to RAB is 0.69x.

84% of the Group's medium/long-term debt is fixed rate and has an average duration of 4.4 years, protecting the Group from the impact of any interest rate rises.

The Holding Company has undrawn committed credit facilities for €700m and uncommitted credit facilities of €425m, of which €21m has been drawn down.

SEGMENT INFORMATION FOR 2022

• WATER EBITDA of €669.0m is up almost €14m (2.1%) compared with 2021. The performance reflects operating efficiencies, the positive contribution from the equity-accounted water companies (up €8.9m) and recognition of the technical quality bonus (€26.9m for companies consolidated on a line-by-line basis, ARERA Resolution 183/2022). The result was negatively impacted by the non-recognition of regulatory items.
• ENERGY INFRASTRUCTURE EBITDA of €352.2m (€371.6m for 2021) was influenced by the impact ofthe decrease in WACC for €26m, partly offset by the positive impact of the resilience plan and operating cost efficiencies.

OPERATIONAL HIGHLIGHTS (GWh)	2022	2021	% change
Electricity distributed	9,355	9,172	+2%

• GENERATION – EBITDA recorded a significant increase of 13.0% compared with 2021, rising to €89.8m thanks to the sharp rise in energy market prices. The result was affected, however, by reduced hydroelectric production as a result of low rainfall, the deconsolidation of photovoltaic assets and the cap on retail energy prices introduced by the Sostegni Ter Law Decree.

OPERATIONAL HIGHLIGHTS (GWh)	2022	2021	% change
Hydro + thermo + cogeneration	536	639	-16%
Photovoltaic production	114	71	+60%
Total electricity production	650	710	-8%

⁵ Includes capex by Environment segment.

• COMMERCIAL & TRADING – EBITDA is up 11.8% to €90.0m. The performance primarily reflects the increased contribution from energy efficiency projects, partially offset by a reduction in margins on the free market.

OPERATIONAL HIGHLIGHTS	2022	2021	% change
Free market	6,331	6,562	-4%
Enhanced protection market	1,411	1,694	-17%
Electricity sold (GWh)	7,742	8,256	-6%
Gas sold (million m3)	208	214	-3%
NUMBER OF CUSTOMERS ('000s)	2022	2021	% change
Free market	535	488	+10%
Enhanced protection market	647	700	-8%
Total electricity customers ('000s)	1,182	1,188	-1%
Total gas customers ('000s)	248	228	+9%

• ACEA AMBIENTE – EBITDA is up sharply compared with 2021, rising 59.5% to €101.6m. The result reflects the higher margins earned on the sale of electricity produced by the WTE plants at higher prices, the release of the Terni plant from its obligation to purchase CO2 allowances and changes in the scope.

OPERATIONAL HIGHLIGHTS	2022	2021	% change
Treatment and disposal ('000 tonnes)	1,715	1,515	+13%
Net WTE electricity sold (GWh)	322	328	-2%

• Other businesses and the Holding Company – The contribution to EBITDA from the Overseas and Engineering & Services segments and from the Holding Company totals €2.4m (€5.4m in 2021).

SUSTAINABILITY KPIs

In a global scenario in which environmental and social impacts are increasingly important, the ACEA Group is continuing to pursue its sustainability strategy in line with the long-term goals in the UN's 2030 Agenda.

A number of key performance indicators for 2022 are provided below:

• Water losses reduction of approximately 30 Mm3 in a year (-6% versus 2021) 6
• a 68% share of energy produced from renewables out of 941 GWh;
• approximately 18,000 prosumer customers (up 14%);
• approximately 37,000 tonnes of quality compost produced (up 31% on 2021);
• 1.42m lighting and gas contracts managed; 42% of total electricity sold on the free market is green energy.

The commitment and focus marking ACEA's ESG strategy received further recognition with, among other things, Standard Ethics upgrading its Outlook from "Stable" to "Positive" and affirming the "EE" Corporate Rating on 5 July 2022.

On 8 August 2022, ACEA signed a new 3-year sustainability rating-linked revolving credit facility totalling €200m with Cassa Depositi e Prestiti. The facility is linked to two target sustainability ratings relating to Environment, Social and Governance (ESG) aspects. Pricing of the new facility is linked to target ratings to be assigned by Standard Ethics and EticaNews.

⁶ Main Group companies within the scope of the NFS

ACEA has become the first listed Italian multiutility to obtain UNI/PdR 125:2022 certification, the only national standard for gender equality, from RINA, the certification body accredited by Accredia, a milestone also included in the National Recovery and Resilience Plan.

The ACEA Group has been included by the Financial Times and Statista in their "Europe Diversity Leaders 2023" rankings.

On 19 December, ACEA's shares joined the MIB ESG index that focuses on environmental sustainability. This is the first ESG index for Italian blue-chips, designed for listed issuers who have the best ESG practices.

KEY EVENTS IN 2022

On 22 March 2022, ACEA closed the agreement with the UK investment fund, Equitix, for the sale of a majority interest in the ACEA Group's photovoltaic holding company to which ACEA's photovoltaic assets have been transferred. The assets in question are either already in operation or are in the process of being connected to Italy's national grid. The closing of the transaction means that the newly established company, AE Sun Capital Srl, 60% owned by Equitix and 40% owned by ACEA Produzione SpA, has acquired a portfolio of photovoltaic plants with total installed capacity of 105 MW, including 46 MW qualifying for various feed-in tariffs and 59 MW represented by newly built plants already connected or in the process of being connected to the national grid.

On 29 March 2022, ACEA and Suez signed the final agreements setting up a commercial partnership for development of a next-generation smart water metering system and its subsequent production and commercialisation in Italy and overseas.

On 1 April 2022, the Consortium established by Ascopiave, ACEA and Iren closed the agreement with the A2A Group for the acquisition of a number of assets relating to natural gas distribution concessions. The assets involved in the transaction include approximately 157 thousand end users across 8 Italian regions, forming part of 24 ATEM (minimum concession areas) and consisting of approximately 2,800 km of network.

On 27 April 2022, The Annual General Meeting of ACEA SpA's shareholders approved the financial statements and presented the consolidated financial statements for the year ended 31 December 2021 and the Consolidated Non-financial Statement, prepared in accordance with Legislative Decree 254/2016 (the 2021 Sustainability Report).

The AGM also elected the new Board of Statutory Auditors and – as proposed by the shareholder, Suez International SAS – the Director, Francesca Menabuoni.

On 27 June, the largest photovoltaic plant in Basilicata, the 20MW "Piana di Santa Chiara" plant in the municipality of Ferrandina (Matera), opened. The plant was built by ACEA Solar and is owned by AE Sun Capital (60% Equitix and 40% ACEA Produzione).

On 30 June, ACEA, through the subsidiary, ACEA Ambiente, won the auction for the sale of the "Polo Cirsu" business unit operating in the waste treatment and storage sector in Abruzzo.

On 18 July, ACEA's Board of Directors co-opted (art. 2386 of the Italian Civil Code and art. 15 of the Articles of Association) Massimiliano Pellegrini on to the Board as a new non-executive Director of the Company to replace Giovanni Giani who resigned on 27 June 2022. The Board also appointed Massimiliano Pellegrini as a member of the Nominations and Remuneration Committee

and Francesca Menabuoni as a member of the Audit and Risk Committee and the Ethics and Sustainability Committee. Ms Menabuoni has also been appointed a member and Chair of the Committee for the Region.

On 19 July, ACEA Solar (a wholly-owned subsidiary of ACEA Produzione) announced that it had received the "Environmental Impact Assessment" and "Single Consent" from Sardinia Regional Authority necessary for construction of a photovoltaic plant in the municipality of Bolotana (NU) to proceed. The largest in Sardinia and one of the biggest in Italy, the plant will have installed capacity of approximately 85MW and will enter service in the first half of 2024. Annual production capacity is expected to be approximately 170 GWh, equal to over 70,000 tonnes of avoided CO2 emissions per year.

On 23 September, ACEA's Board of Directors acknowledged the announcement from the shareholder, Roma Capitale, requesting the replacement of the Company's Chief Executive Officer and nominating Mr. Fabrizio Palermo as the shareholder's chosen candidate on ACEA's Board of Directors and to be the Company's next Chief Executive Officer.

On 26 September, Having approved the terms and conditions for the mutual termination of the relationship with Mr. Giuseppe Gola, ACEA's Board of Directors co-opted Mr. Fabrizio Palermo as a member of the Company's Board of Directors in accordance with art. 2386 of the Italian Civil Code and art. 15 of the articles of association. The co-option was carried out on the recommendation of the Nominations and Remuneration Committee and by resolution approved by the Board of Statutory Auditors.

Mr. Fabrizio Palermo was thus appointed ACEA's Chief Executive Officer and, as such, does not meet the independence requirements provided for in the related legislation and the Corporate Governance Code.

On 3 October, ACEA Ambiente (a wholly owned subsidiary of ACEA SpA) completed the acquisition of a 70% stake in Tecnoservizi Srl, a company that operates in the province of Rome in the mechanical treatment and recovery of recyclable urban waste (mixed and mono-material packaging) and non-hazardous special waste. The acquired company has authorised treatment capacity of 210 thousand tonnes per year. The enterprise value of a 100% stake in the company is €21m. The consideration paid for the stake is €5.2m, with the balance of €1.6m payable in the second half of 2025. Once completed, EBITDA is expected to amount to approximately €4m. Tecnoservizi will be fully consolidated by ACEA.

On 26 October, the ACEA Group, through Areti, completed a new high-voltage power line to the south west of Rome, boosting capacity on the existing line (raising the voltage from 60KV to 150KV) and enabling an estimated reduction in CO2 emissions of 600,000 kg a year. The total investment amounted to approximately €4.4m.

On 3 November, ACEA Ambiente, through its subsidiary, Cavallari Srl, completed the acquisition of a 100% stake in Italmacero Srl, a company that operates in the mechanical treatment and recovery of recyclable urban waste (mixed and mono-material packaging) and nonhazardous special waste. The company owns a plant in the Ancona North area, with authorised capacity of 13 thousand tonnes. The consideration paid for the acquisition is €1.2m. Italmacero will be fully consolidated by ACEA.

On 6 December, ACEA completed closing of the first phase of the business combination with ASM Terni, following the public procedure launched by the latter.

With regard to ACEA's ratings:

• •on 6 July, Fitch Ratings affirmed ACEA's Long-Term Issuer Default Rating (IDR) as "BBB+" with a "Stable" Outlook and the Short-Term IDR as "F2". It also affirmed the Long-Term Senior Unsecured Rating as "BBB+".
• •on 9 August, Moody's downgraded ACEA's Outlook from "Stable" to "Negative". The change, together with those applied to other Italian companies, reflects these companies' exposure to the deterioration in Italy's sovereign rating. The agency confirmed the Long-Term Issuer Rating and Senior Unsecured Rating as "Baa2", the Baseline Credit Assessment as "Baa2" and the "(P)Baa2" rating assigned to the EMTN programme.

KEY EVENTS AFTER 31 DECEMBER 2022

On 17 January 2023, ACEA successfully completed the placement of a Green Bond worth €500m, paying coupon of 3.875%, a yield of 3.925% and maturing on 24 January 2031.

On 3 February, ACEA successfully completed a tap issue of the Green Bond issued on 17 January, amounting to €200m, paying coupon of 3.875% and a yield of 3.820%, equal to 105 basis points above the midswap rate, marking a further improvement on the already favourable terms attaching to the original issue.

On 17 January, the ACEA Group obtained Top Employers Italia 2023 certification for the second year running.

On 23 January, the Company completed the acquisition of the remaining 35% of DECO SpA, which operates in waste management in the Abruzzo region and in which it already held a 65% stake.

On 14 February, Michaela Castelli resigned from her role as a Director and as Chairwoman of ACEA's Board of Directors.

On 17 February, ACEA's Board of Directors co-opted Barbara Marinali as a non-executive member of the Company's Board of Directors and appointed her as Chairwoman. Barbara Marinali has extensive experience in the public and private sectors. She has held important positions, acquiring in-depth knowledge of the administrative structure and workings of the state. She currently holds important positions on the boards of listed companies.

On 1 March, ACEA Ambiente submitted an expression of interest in response to the public notice published by the Municipality of Roma. The notice regards the search for economic operators interested in submitting project financing proposals with a view to granting a concession for the design, licencing, construction and operation of a waste to energy plant in Rome and the related ancillary facilities.

OUTLOOK

In a scenario that remains challenging, primarily due to fallout from the conflict in Ukraine and its economic and social effects, and the negative impact of heightened energy market volatility, the results for 2022 show solid growth. Despite this, net profit for 2022 was affected by a number of external factors, above all the windfall tax and the effect of rising interest rates.

The Group has placed more emphasis on managing costs and investment. ACEA has conducted a prompt review of procurement procedures with the aim of improving tender processes, enabling the Group to rapidly cut costs and optimise investment and contracting. Steps have also been taken to contain credit risk through prevention and customer portfolio management.

The actions taken have enabled the Group to strengthen its position as an industrial player, maintaining a solid financial structure and having a positive impact on the Group's operating and financial performance.

With regard to the Water segment, ACEA has paved the way for the doubling of the Peschiera aqueduct, one of ten large infrastructure investments considered to be of national interest, to proceed. This project, with a total cost of €1.2bn, including €700m covered by public funding allocated in the 2023 Stability Law, aims to secure the capital's water supply. In addition, the award of projects included in the NRRP worth €560m, including initiatives in Lazio, Tuscany, Campania and Umbria, has been given the go-ahead.

In the Environment segment, in October, ACEA received the go-ahead from Lazio Regional Authority – applied for on 20 August 2020 – for the upgrade of the San Vittore WTE plant in Frosinone. The project will play a key role in closing the waste cycle in the Lazio region and will boost WTE capacity by 186,000 tonnes a year, in return for investment of over €230m. On 1 March, ACEA, as part of a group of major Italian and international operators in their respective sectors, submitted an expression of interest in bidding for the contract to build and operate the new Santa Palomba WTE plant in Rome.

With regard to public lighting and the electricity distribution network, ACEA has been able to relaunch important investment projects in preparation for the Jubilee, thanks to the renewed collaboration with the Municipality of Rome, and has received the go-ahead for the award of NRRP projects worth approximately €174m. At the end of January, a new electricity meter was launched in Rome that makes it easier to balance energy demand and supply.

The results for the year ended 31 December 2022 will be presented during a conference call with analysts and investors to be held at 4.00pm (Italian time) today, 8 March. The call will also be available via a webcast in "listen-only" mode in the Investors section of the website at www.gruppo.acea.it, where back-up material will also be made available at the start of the conference call.

The Executive Responsible for Financial Reporting, Fabio Paris, declares that, pursuant to section two of article 154-bis of the Consolidated Finance Act, the information contained in this release is consistent with the underlying accounting records.

The following schedules are attached:

The consolidated income statement for the year ended 31 December 2022, the consolidated statement of financial position at 31 December 2022, the statement of changes in equity, the reclassified consolidated statement of financial position at 31 December 2022, the analysis of net debt at 31 December 2022 and the consolidated statement of cash flows for the year ended 31 December 2022.

ACEA Group contacts

Investor Relations Tel. +39 0657991 investor.relations@aceaspa.it

Press Office

Tel. +39 0657997733 ufficio.stampa@aceaspa.it Corporate website: www.gruppo.acea.it

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

€000

	2022	2021	Increase/ (Decrease)
Sales and service revenues	4,957,179	3,816,030	1,141,149
Other operating income	181,066	156,032	25,035
Consolidated net revenue	5,138,245	3,972,061	1,166,183
Staff costs	305,066	275,819	29,247
Cost of materials and overheads	3,556,055	2,461,216	1,094,840
Consolidated operating costs	3,861,121	2,737,035	1,124,086
Net profit/(loss) from commodity risk management	0	0	0
Profit/(loss) on non-financial investments	27,897	21,048	6,849
Gross operating profit	1,305,021	1,256,075	48,946
Net impairment losses/(reversals of impairment losses) on trade receivables	113,370	86,207	27,164
Amortisation, depreciation and provisions	625,799	588,768	37,031
Operating profit/(loss)	565,851	581,101	(15,249)
Finance income	25,962	11,491	14,471
Finance costs	(111,670)	(97,388)	(14,282)
Profit/(loss) on investments	17,793	7,798	9,995
Profit/(loss) before tax	497,937	503,002	(5,065)
Income tax expense	186,777	150,662	36,115
Net profit/(loss)	311,160	352,340	(41,180)
Net profit/(loss) from discontinued operations	0	0	0
Net profit/(loss)	311,160	352,340	(41,180)
Net profit/(loss) attributable to non-controlling interests	31,435	39,030	(7,595)
Net profit/(loss) attributable to owners of the Parent	279,725	313,309	(33,585)
Earnings/(Loss) per share attributable to owners of the Parent
Basic	1.31348	1.47118	(0.15770)
Diluted	1.31348	1.47118	(0.15770)
Earnings/(Loss) per share attributable to owners of the Parent net of treasury shares
Basic	1.31605	1.47406	(0.15801)
Diluted	1.31605	1.47406	(0.15801)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2022

€000
	31 December 2022	31 December 2021	Increase/ (Decrease)
Property, plant and equipment	3,144,250	2,938,530	205,720
Investment property	2,256	2,314	(58)
Goodwill	255,048	251,477	3,570
Concessions and infrastructure rights	3,470,906	3,048,190	422,715
Intangible assets	420,191	411,607	8,584
Right-of-use assets	90,397	53,096	37,301
Investments in unconsolidated subsidiaries and associates	348,885	292,239	56,646
Other investments	3,007	2,980	27
Deferred tax assets	179,823	202,606	(22,783)
Financial assets	30,531	22,549	7,982
Other non-current assets	615,144	576,065	39,078
Non-current assets	8,560,435	7,801,652	758,783
Inventories	104,507	86,406	18,101
Trade receivables	1,267,445	1,071,644	195,802
Other current assets	458,780	387,813	70,967
Current tax assets	26,296	24,183	2,114
Current financial assets	342,085	407,944	(65,858)
Cash and cash equivalents	559,908	680,820	(120,912)
Current assets	2,759,022	2,658,809	100,213
Non-current assets held for sale	19,076	168,425	(149,350)
TOTAL ASSETS	11,338,533	10,628,886	709,646

	31 December 2022	31 December 2021	Increase/ (Decrease)
Share capital	1,098,899	1,098,899	0
Legal reserve	147,501	138,649	8,852
Other reserves	27,743	(123,433)	151,176
Retained earnings/(accumulated losses)	737,400	696,547	40,853
Net profit/(loss) for the period	279,725	313,309	(33,585)
Total equity attributable to owners of the Parent	2,291,268	2,123,971	167,296
Equity attributable to non-controlling interests	463,975	392,449	71,526
Total equity	2,755,243	2,516,420	238,822
Staff termination benefits and other defined benefit obligations	112,989	120,150	(7,162)
Provisions for liabilities and charges	218,025	193,318	24,706
Borrowings and financial liabilities	4,722,263	4,791,979	(69,716)
Other non-current liabilities	399,628	409,064	(9,435)
Non-current liabilities	5,452,905	5,514,512	(61,607)
Borrowings	619,418	285,222	334,196
Trade payables	1,849,980	1,683,563	166,417
Tax liabilities	26,810	18,962	7,847
Other current liabilities	632,259	562,806	69,453
Current liabilities	3,128,466	2,550,553	577,914
Liabilities related directly to assets held for sale	1,919	47,402	(45,483)
TOTAL EQUITY AND LIABILITIES	11,338,533	10,628,886	709,646

STATEMENT OF CHANGES IN EQUITY

€000

	Share capital	Legal reserve	Reserve for measurement of defined benefit plans for employees, net of taxation	Fair value reserve for derivative financial instruments, net of taxation	Reserve for translation differences	Other reserves	Net profit/ (loss) for year	Total equity attributable to owners of the Parent	Equity attributable to non controlling interests	Total equity
Balance at 1 January 2022	1,098,899	138,649	(18,234)	(4,754)	2,048	594,055	313,309	2,123,971	392,449	2,516,420
Net profit/(loss) in income statement	0	0	0	0	0	0	279,725	279,725	31,435	311,160
Other comprehensive income/(losses)	0	0	3,876	50,175	14,544	0	0	68,595	8,313	76,907
Total comprehensive income/(loss)	0	0	3,876	50,175	14,544	0	279,725	348,319	39,748	388,067
Appropriation of net profit/(loss) for 2021	0	8,852	0	0	0	304,457	(313,309)	0	0	0
Dividends paid	0	0	0	0	0	(180,666)	0	(180,666)	(11,992)	(192,658)
Change in scope of consolidation	0	0	29	(596)	0	(2,211)	0	(2,777)	43,843	41,066
Other changes	0	0	0	0	0	2,420	0	2,420	(73)	2,348
Balance at 31 December 2022	1,098,899	147,501	(14,329)	44,825	16,592	718,056	279,725	2,291,268	463,975	2,755,243

	Share capital	Legal reserve	Reserve for measurement of defined benefit plans for employees, net of taxation	Fair value reserve for derivative financial instruments, net of taxation	Reserve for translatio n difference s	Other reserves	Net profit/ (loss) for year	Total equity attributable to owners of the Parent	Equity attributable to non controlling interests	Total equity
Balance at 1 January 2021	1,098,899	129,761	(21,419)	(25,197)	(3,918)	504,257	282,446	1,964,829	358,429	2,323,258
Net profit/(loss) in income statement	0	0	0	0	0	0	313,309	313,309	39,030	352,340
Other comprehensive income/(losses)	0	0	3,185	20,407	5,964	0		29,556	2,081	31,637
Total comprehensive income/(loss)	0	0	3,185	20,407	5,964	0	313,309	342,865	41,111	383,976
Appropriation of net profit/(loss) for 2020	0	8,888	0	0	0	273,558	(282,446)	0	0	0
Dividends paid	0	0	0	0	0	(170,038)	0	(170,038)	(13,606)	(183,645)
Change in scope of consolidation	0	0	0	0	0	0	0	0	(9,026)	(9,026)
Other changes	0	0	0	0	0	(13,685)	0	(13,685)	15,541	1,856
Balance at 31 December 2021	1,098,899	138,649	(18,234)	(4,754)	2,048	594,055	313,309	2,123,971	392,449	2,516,420

RECLASSIFIED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2022

€000
Financial position	31 December 2022	31 December 2021	Increase/ (Decrease)	% increase/ (decrease)
Non-current assets and liabilities	7,846,950	7,200,143	646,807	9.0%
Net working capital	(652,020)	(695,285)	43,265	(6.2%)
Net invested capital	7,194,930	6,504,858	690,072	10.6%
Net debt	(4,439,688)	(3,988,438)	(451,250)	11.3%
Total equity	(2,755,243)	(2,516,420)	(238,822)	9.5%

ANALYSIS OF NET DEBT AT 31 DECEMBER 2022

€000

	31 December 2022	31 December 2021	Increase/ (Decrease)	% increase/ (decrease)
A) Cash	559,908	680,820	(120,912)	(17.8%)
B) Cash equivalents	0	0	0	n/s
C) Other current financial assets	342,085	407,944	(65,858)	(16.1%)
D) Liquidity (A + B + C)	901,993	1,088,764	(186,770)	(17.2%)
E) Current financial debt	(165,406)	(173,606)	8,200	(4.7%)
F) Current portion of non-current financial debt	(454,012)	(111,616)	(342,396)	n/s
G) Current debt (E + F)	(619,418)	(285,222)	(334,196)	117.2%
H) Current net debt (G + D)	282,575	803,542	(520,966)	(64.8%)
I) Non-current financial debt	(4,722,263)	(4,791,979)	69,716	(1.5%)
J) Debt instruments	0	0	0	n/s
K) Trade payables and other non- current payables	0	0	0	n/s
L) Non-current net debt (I + J + K)	(4,722,263)	(4,791,979)	69,716	(1.5%)
Total debt (H + L)	(4,439,688)	(3,988,438)	(451,250)	11.3%

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

€000
	2022	2021	Increase/ (Decrease)
CASH FLOW FROM/(FOR) OPERATING ACTIVITIES
Profit before tax	497,937	503,002	(5,065)
Amortisation, depreciation and impairment losses	594,636	546,626	48,010
Reversals of impairment losses/Impairment losses	67,680	57,360	10,320
Change in provisions	14,167	(3,706)	17,873
Net change in staff termination benefits	(19,158)	(7,004)	(12,154)
Net interest expense	85,708	85,897	(189)
Income tax paid	(178,506)	(180,117)	1,611
Cash flows from operating activities before changes in working capital	1,062,464	1,002,058	60,406
Increase/Decrease in receivables included in current assets	(247,714)	(184,891)	(62,824)
Increase/Decrease in payables included in current liabilities	137,721	68,010	69,712
Increase/Decrease in inventories	(15,497)	7,209	(22,707)
Change in working capital	(125,490)	(109,672)	(15,819)
Change in other operating assets/liabilities	(210,271)	(136,125)	(74,146)
Cash flows from operating activities attributable to disposal groups/assets held for sale	0	3,259	(3,259)
TOTAL CASH FLOW FROM OPERATING ACTIVITIES	726,703	759,521	(32,818)
CASH FLOW FROM/(FOR) INVESTING ACTIVITIES
Purchase/Sale of property, plant and equipment	(350,085)	(626,507)	276,422
Purchase/Sale of intangible assets	(700,218)	(354,759)	(345,458)
Investments	110,008	(90,048)	200,156
Amounts received from/paid for other financial investments	44,819	1,340	43,479
Dividends received	3,381	7,423	(4,041)
Interest received	29,243	14,511	14,732
Cash flows from investing activities attributable to disposal groups/assets held for sale	0	(3,189)	3,189
TOTAL CASH FLOW FOR INVESTING ACTIVITIES	(862,752)	(1,051,231)	188,479
CASH FLOW FROM/(FOR) FINANCING ACTIVITIES
Repayments of loans and long-term borrowings	(73,287)	(233,995)	160,708
New borrowings/other medium/long-term liabilities	250,000	902,500	(652,500)
Reduction/Increase in other borrowings	92,441	(146,968)	239,409
Interest paid	(114,121)	(100,752)	(13,370)
Dividends paid	(146,238)	(96,743)	(49,495)
Cash flows from financing activities attributable to disposal groups/assets held for sale	0	0	0
TOTAL CASH FLOW FOR FINANCING ACTIVITIES	8,795	324,042	(315,247)
CASH FLOW FOR THE YEAR	(127,254)	32,332	(159,586)
Net cash and cash equivalents at beginning of year	680,820	642,209	38,611
Cash and cash equivalents from acquisitions	6,342	18,652	(12,310)
NET CASH AND CASH EQUIVALENTS AT END OF YEAR	559,908	693,193	(133,285)
Cash and cash equivalents at end of year attributable to disposal groups/assets held for sale	0	12,374	(12,374)
Cash and cash equivalents at end of year
attributable to continuing operations	559,908	680,820	(120,912)